Componenta Oyj

Annual / Quarterly Financial Statement • Mar 1, 2024

Financial Statements Release 1 January–31 December 2023

Net sales and EBITDA decreased from the previous year

January– December 2023

• Net sales decreased from the previous year to EUR 101.8 million (EUR 109.1 million)
• EBITDA decreased to EUR 5.3 million (EUR 7.1 million)
• The operating result was EUR 3.8 million (EUR 1.6 million)*
• Cash flow from operating activities was EUR 1.1 million (EUR 6.2 million).

October– December 2023

• Net sales decreased to EUR 21.7 million (EUR 30.1 million)
• EBITDA decreased to EUR -0.5 million (EUR 2.8 million)
• The operating result decreased to EUR -1.9 million (EUR 1.4 million)
• Cash flow from operating activities was EUR -1.6 million (EUR 3.5 million).
• * The operating result for the financial year includes a non-recurring profit of EUR 4.2 million from the reversal of the impairment loss related to production machinery and equipment in foundry business. More information on the reversal of the impairment loss can be found in the section "Tangible and intangible assets" in the financial statement release.

The information presented in this Financial Statements Release concerns the Componenta Group's performance in January–December 2023 and in the corresponding period in 2022 unless otherwise stated. The figures in this release have not been audited.

Sami Sivuranta, President and CEO:

"The first half of 2023 was a good continuation of the strategic development in previous years. However, in the second half of the year and especially in the last quarter, our production volumes were clearly lower than expected. This was influenced by market uncertainties and a higher interest rate environment than before, as a result of which our main customers' own order books developed more modestly. Our main customers optimized their stock levels towards the end of the year. Also, the level of net sales was affected by the lower level of price indices as a result of a decrease in costs. On the whole, our net sales and EBITDA fell slightly from 2022, so we are not satisfied with our financial performance in 2023. Nevertheless, our liquidity remained at a good level throughout the review period.

Due to general market uncertainty our main customers' decision-making time between the submission of an offer and the acceptance of the offer has increased over the last year. This has been reflected in the development of new sales and in delays in the ramp-up of new production. In terms of new sales, we have systematically increased our market shares, and we believe this will have a positive impact on our sales volumes over the longer term.

Our profitability was somewhat burdened by the wage agreements made in our industry in the first half of the year, which increased our costs clearly, in addition to increasing inflation. In the review period, profitability was also affected by production and quality challenges in Karkkila. These challenges with scheduled maintenance related to one of the main production machines began in and lasted throughout the third quarter, contrary to the original schedule. We were able to ensure deliveries to our customers on schedule, and our service capability throughout the Group has remained good despite changes in the operating environment. In the second half of the year and especially in the last quarter, our factories' utilisation rates decreased clearly, which resulted in

a decrease in our production process efficiency and ability to create high quality. This had a negative impact on our profitability. At the same time, we were ramping up the serial production of new high-volume products, which temporarily reduced production efficiency and quality. This also burdened our profitability.

The overall availability of raw materials and other materials has improved clearly and is currently at a good level. At the same time, the cost level of purchases has begun to normalise. Inflation reached a high level during the review period, but began to fall towards the end of 2023. We actively monitor market developments and will continue to ensure the functionality of our own supply chains. There are currently no significant nearterm risks in the availability of electricity because of the high level of gas storage in Central Europe, among other reasons. However, there are still considerable fluctuations in the price of electricity at the daily level.

Our order book has started to strengthen since the end of the third quarter. Customer and industry-specific differences can be seen in order accumulation, but the outlook for the entire year 2024 has generally remained positive. With the start of serial production of new volume product sets from the second quarter onwards and thanks to the growth of Componenta's market shares, we estimate that our total production volumes will increase from 2023.

We have updated our strategy for 2024–2026. Sustainability has become one of the focus areas of our strategy, and we will strengthen its role as one of our competitive advantages. We are also currently preparing for regulatory changes, as well as for our long-term sustainability targets and action programmes. During the end of strategy period, our goal is to achieve EUR 150 million in annual net sales through organic growth and in total EUR 200 million in annual net sales through acquisitions, and to improve our current profitability. As a contract manufacturer, we will actively continue our efforts to strengthen our market position and are aiming to be the preferred overall sustainable supplier of a wide range of products to our customers."

Dividend proposal

The Group's profit for the financial year was EUR 1.5 million (EUR 0.1 million). On 31 December 2023, the parent company's distributable funds totalled EUR 17.1

Componenta's guidance for 2024

Componenta expects the Group's net sales and EBITDA to improve from the previous year. The Group's net sales in 2023 were EUR 101.8 million, and its EBITDA was EUR 5.3 million. It is expected that the emphasis of the improvement in annualized net sales and EBITDA will be clearly taking place on the second half of the year.

The development of customers' sales volumes, poor availability of raw materials, increases in the prices of raw materials and electricity, and the general economic and labour situation and competitive climate may affect business outlooks. In addition, the development of sales and profitability involves uncertainties because of geopolitical situation. An unfavourable development of the geopolitical situation may also have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and electricity, and the availability of foreign labour, all of which increase forecasting uncertainty.

Summary of key events in 2023

Our net sales and EBITDA continued to grow in the first half of the year in a very challenging operating environment, thanks to higher delivery volumes and the implementation of our own development measures as planned. However, in the second half of the year, production volumes were lower than expected because our main customers' own order books developed modestly as a result of market uncertainties, and because stock levels were optimised as part of working capital management. This caused our factories' utilisation rates to decrease, which had a negative impact on production process efficiency, capability and profitability.

Componenta signed an agreement on a EUR 4 million net working capital loan in the fourth quarter of 2022 and drew down the first instalment of EUR 2 million in December 2022. Componenta drew down the second and consequently last instalment EUR 2 million in March 2023.

Componenta terminated its factoring and revolving credit facility agreement on 31 August 2023 and entered into an agreement with a new partner. In most Group companies, the services were transferred to the new partner mainly during 2023. At the financial statement date, the new revolving credit facility of EUR 4 million was unused.

Under the authorisation granted by the Annual General Meeting, Componenta Corporation's Board of Directors decided on 13 April 2023 to launch an option programme for the company's key personnel. Option programmes are used to encourage key employees to commit to long-term employment at the company in order to increase shareholder value. Option rights are also intended to commit key personnel to the company. The maximum number of option rights to be issued is 400,000. The option rights entitle their holders to subscribe for a maximum of 400,000 new shares in the company or shares held by the company. The option rights are issued without consideration. Of the option rights, 133,348 were marked as option 2023A, 133,326 will be marked as option 2023B, and 133,326 will be marked as option 2023C. The shares to be subscribed for based on the option rights to be issued correspond to a total maximum of 3.9% of all

Key figures

the shares and votes in the company after any share subscriptions if new shares are issued to be subscribed for. The target group of the option programme consists of around 15 key people, including the members of the Group's Corporate Executive Team.

In an IFRS assessment of Componenta on 30 September 2023, it was noted that long-term profit expectations for the foundry business had improved. Consequently, an impairment loss of around EUR 4.2 million was reversed related to the machinery and equipment of the production operations of the foundry business. At the financial statement date, the expectations had remained the same.

Order book

Componenta's order book at the end of 2023 was EUR 14.5 million (EUR 18.5 million). The order book increased by EUR 1.0 million from the end of the previous quarter. The order book contains the orders confirmed to customers for the next two months. The decrease in the order book from the previous year was significantly affected by a decline in Componenta's main customers' own order books and stock level optimisation as part of working capital management.

	2023	2022	Change,%
Net sales, EUR thousand	101,809	109,087	-6.7
EBITDA, EUR thousand	5,278	7,086	-25.5
Operating result, EUR thousand	3,762**	1,565*	140.4
Operating result, %	3.7**	1.4*	159.1
Result after financial items, EUR thousand	1,568	-97	-1,714.9
Net result, EUR thousand	1,547	61	2,420.9
Basic earnings per share, EUR	0.16	0.01	2,847.7
Diluted earnings per share, EUR	0.16	0.01	2,852.9
Cash flow from operating activities, EUR thousand	1,126	6,171	-81.8
Interest-bearing net debt, EUR thousand	9,097	4,818	88.8
Net gearing, %	35.6	20.0	78.0
Return on equity, %	6.2	0.2	2,763.0
Return on investment, %	9.8	4.3	129.8
Equity ratio, %	45.0	41.1	9.7
Capital expenditure incl. lease liabilities, EUR thousand	4,066	3,617	12.4
Number of personnel at the end of the period, incl. leased workers	615	643	-4.4
Average number of personnel during the period, incl. leased workers	631	643	-1.8
Order book at the end of the period, EUR thousand	14,532	18,481	-21.4

* The year 2022 has been adjusted due to a change in the principle of preparing real estate valuations. More information about the change in the accounting principle and its effects on previous years' figures can be found in the section "Valuation of properties and land areas" in the financial statement release.

** The operating result for 2023 includes a non-recurring income of EUR 4.2 million from the reversal of the impairment loss related to the foundry business's production machinery and equipment. More information on the reversal of the impairment loss can be found in the section "Tangible and intangible assets" in the financial statement release.

Net sales

Net sales decreased by 6.7% from the previous year to EUR 101.8 million (EUR 109.1 million). Net sales decreased because delivery volumes were lower in the second half of the year, and because the level of the main raw material and energy indices included in sales prices were lower than in the comparison period. Componenta's net sales were divided between customer industries as follows: machine building 45% (46%); agricultural machinery 30% (31%); forestry machinery 7% (7%); the energy industry 9% (8%); the defence equipment industry 4% (2%); and other industries 5% (6%).

Result

The Group's EBITDA decreased from the previous year, amounting to EUR 5.3 million (EUR 7.1 million). The following factors had a somewhat negative impact on profitability: the industry-specific wage agreements made in the first half of the year, the prolonged scheduled maintenance of the Karkkila foundry in the third quarter, and lower production utilisation rates in the second half of the year, which were reflected in production process efficiency and ability to create high quality. In addition, in the last quarter of the year, profitability was burdened by the ramp-up of the manufacture of new high-volume products, which temporarily weakened profitability.

The Group's operating result increased from the previous year, amounting to EUR 3.8 million (EUR 1.6 million). The reversal of an impairment loss of EUR 4.2 million related to production machinery and equipment had a positive impact on the operating result. In its IFRS assessment in the third quarter of 2023, Componenta noticed that long-term profit expectations for the foundry business had improved. Consequently, a one-off profit was recognised in the depreciation, amortization and write-downs line item in the income statement. The Group's net financial items totalled EUR -2.2 million (EUR -1.7 million). The change in net financial items was related to higher market interest rates and the net working capital loan, EUR 4 million in total, which was drawn down in December 2022 and March 2023. The Group's result after financial items was EUR 1.6 million (EUR -0.1 million). Taxes totalled EUR 0.0 million (EUR +0.2 million) for the financial year. The Group's profit for the financial year was EUR 1.5 million (EUR 0.1 million).

Basic earnings per share were EUR 0.16 (EUR 0.01) for the financial year. Diluted earnings per share were EUR 0.16 (EUR 0.01) for the financial year.

Balance sheet, financing and cash flow

At the end of the financial year, the company's invested capital stood at EUR 39.9 million (EUR 37.5 million), and the return on investment was 9.8 % (4.3 %). The return on equity was 6.2 % (0.2 %). The Group's equity ratio stood at 45.0 % (41.1 %) at the end of the financial year. The equity ratio improved because of the positive result for the financial year and the lower level of noninterest-bearing liabilities. The Group's equity was EUR 25.5 million (EUR 24.1 million). Its net gearing stood at 35.6 % (20.0 %) at the end of the financial year. The unfavourable development in gearing was mainly caused by the weaker cash position and due to the second and final instalment of EUR 2 million of the net working capital loan, which was drawn down during the financial year, and new lease liabilities for machinery and equipment.

Componenta Group's total liabilities on 31 December 2023 stood at EUR 31.7 million (EUR 34.7 million). Long-term liabilities amounted to EUR 11.9 million (EUR 10.6 million), and short-term liabilities totalled EUR 19.8 million (EUR 24.1 million). The Group's liabilities included EUR 3.6 million (EUR 3.5 million) in loans from financial institutions. The Group's other debt items included EUR 7.9 million (EUR 10.4 million) in working capital, EUR 10.9 million (EUR 10.0 million) in lease liabilities for facilities, machinery and equipment, and EUR 9.3 million (EUR 10.8 million) in other liabilities.

At the end of the financial year, the Group's cash and cash equivalents totalled EUR 5.3 million (EUR 8.6 million). The Group's liquidity has remained at a fairly good level since the end of the financial year. At the end of the financial year, Componenta also had EUR 4.0 million in unused committed credit facilities valid until September 2025 and a USD 7.5 million unused portion of its USD 8.0 million share subscription facility from GCF, an investor based in the United States. The share subscription facility is valid until June 2024.

The Group's net cash flow from operating activities in the financial year was EUR 1.1 million (EUR 6.2 million). The change was due to smaller sales volumes and weaker profitability than in the previous year.

Cash flow was also weakened by the timing of certain significant material purchases before the end of the financial year, as a result of which trade payables decreased from the previous year. At the end of the financial year, the Group's working capital (including inventories and accounts receivable, less accounts payable) was EUR 6.5 million (EUR 5.3 million). This was because less capital than before was employed in accounts payable.

Capital expenditure

Capital expenditure made by the Group totalled EUR 4.1 million (EUR 3.6 million). The capital expenditure mainly consisted of various production machinery and equipment purchases. The Group's net cash from investing activities was EUR -2.7 million (EUR -2.4 million), which includes the Group's cash flow from capital expenditure in tangible and intangible assets.

Research and development activities

There were no research and development costs, because Componenta engages in contract manufacturing operations and has no products of its own.

Risks and business-related uncertainties

The most significant risks related to Componenta's business operations are risks associated with the operating environment (competitive situation, prices, commodities and the environment), risks related to business operations (customers, suppliers, productivity, production processes, labour market disruptions, contracts, product liability, personnel and information security) and financing risks (availability, liquidity, currency, interest rate and credit).

The availability of certain raw materials such as recycled steel, pig iron, structural steel, aluminium and energy at competitive prices, as well as the uninterrupted supply of energy, is essential for the Group's business operations. The average market prices of electricity remained at a fairly high level during the review period, and daily and hourly price fluctuations were very high. Because of the geopolitical situation, the availability of raw materials and other materials continues to involve uncertainties in Componenta's operational activities. In addition, global challenges with the availability of certain components

for customers may lead to production disruptions in our end customers' plants and thereby affect Componenta's sales volumes in the short term.

To ensure the availability of raw materials and other materials, Componenta actively engages in discussions with its suppliers, continuously updates its needs forecast and optimises its inventory levels to meet longer-term demand, closely monitors the situation of its suppliers and market changes, and responds to these changes as necessary.

According to Componenta's estimate, the Group has no significant and immediate risk concentrations related to Russia or Ukraine among its customers or suppliers of goods. Componenta has no operations of its own in Russia or Ukraine. The Russian attack has had an impact on the general price development and availability of raw materials such as structural steel and pig iron, and on the development of energy prices. The war has had an indirect impact on the supply chains of Componenta's manufacturers of steel materials and wholesalers through the price development and availability of iron ore and coal, for example.

A prolonged war and unfavourable developments in the geopolitical situation may continue to have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and energy, and the availability of foreign labour, which increases forecasting uncertainty.

The cost risk associated with raw materials is mainly managed through index-based price agreements, based on which the sales prices of products are updated in response to changes in the prices of raw materials for the next quarter. An increase in raw material prices may employ more working capital than expected. In terms of commercial risks, future volumes may be weakened by customers switching to cheaper alternatives due to price competition.

Componenta's business operations depend on the reliability of production plants, supply and delivery chains and the related processes and systems. Componenta also closely monitors the labour market situation. The quality, accuracy and availability of information are extremely important, as information technology plays a significant role in the operations of Componenta and its suppliers and customers. If materialised, IT and cybersecurity risks may expose

Componenta to disruptions and interruptions in operations and the loss or distortion of data, which may lead to interruptions in product availability. Componenta pays close attention to cybersecurity risks and monitors its customers' situations and notifications.

Componenta continuously monitors the liquidity risk. The Group also finances its operations through factoring arrangements for receivables. The financing company responsible for Componenta's factoring services had repeated delays in payments during 2023. Componenta therefore terminated its factoring and credit facility agreements with the financing company on 31 August 2023 and entered into new agreements on factoring and credit facility services with Avida Finans AB. Avida Finans AB's credit rating is AAA, and its principal owner is KKR, a private equity firm based in the United States. In most Group companies, the services were transferred to Avida during 2023. Componenta's current committed credit facilities will need to be renewed in September 2025. Any termination or non-renewal of factoring arrangements or credit facilities could create uncertainties for Componenta's liquidity. The Group's liquidity was at a reasonable level at the end of the financial year. At the end of the financial year, Componenta also had EUR 4.0 million in unused committed credit facilities and a USD 7.5 million unused portion of its USD 8.0 million share subscription facility from GCF, an investor based in the United States. The share subscription facility is valid until June 2024. In addition, the second and final instalment (EUR 2 million) of the EUR 4 million net working capital loan was drawn down in March 2023.

Flagging notifications

Componenta did not receive any flagging notifications in 2023.

Resolutions of the Annual General Meeting

Componenta Corporation's Annual General Meeting (AGM) was held in Vantaa on 13 April 2023. The AGM was in favour of all the proposals made and approved the remuneration report. The AGM adopted the financial statements and consolidated financial statements for 2022 and discharged the members of the Board of Directors and the CEO from liability for the 2022 financial year (1 January to 31 December 2022).

In accordance with the Board of Directors' proposal, the AGM decided that no dividend be paid based on the balance sheet confirmed for the financial year that ended on 31 December 2022.

The AGM decided that the annual remuneration payable to the Chair of the Board of Directors would be EUR 50,000, and that the annual remuneration payable to other members of the Board would be EUR 25,000, in accordance with the proposal of the Shareholders' Nomination Board. In addition, the members of any committees of the Board of Directors will be paid an annual remuneration of EUR 5,000. The Board members will be reimbursed for their travel expenses in accordance with the company's travel policy.

In accordance with the proposal of the Shareholders' Nomination Board, the AGM confirmed that the Board of Directors consisted of four (4) members. The AGM re-elected Tomas Hedenborg, Anne Leskelä, Harri Suutari and Petteri Walldén as the members of the Board. The Board members' term of office ends at the close of the next AGM.

The AGM elected Authorised Public Accountants PricewaterhouseCoopers Oy as the company's auditor for the next term of office, with Authorised Public Accountant Ylva Eriksson as the principal auditor.

In accordance with the Board of Directors' proposal, the AGM authorised the Board of Directors to decide on share issues in one or more instalments as follows: the share issue may be carried out either by issuing new shares or by transferring treasury shares held by the company. The total number of shares to be issued or transferred under the authorisation may not exceed 571,275 shares, which correspond to around 5.88% of all the shares in the company. The new shares may be issued and the treasury shares held by the company may be transferred for consideration or without consideration.

The Board of Directors will decide on all the terms and conditions of the issue of new shares and the transfer of the company's own shares. Based on the authorisation, the Board of Directors may also decide on a share issue in deviation of the pre-emptive subscription right of the shareholders (directed issue) subject to conditions mentioned in the Finnish Limited Liability Companies Act. The authorisation also includes the right to decide on the issuance of new

shares to the company itself without consideration. For example, the Board of Directors may use the authorisation as compensation in acquisitions, to develop capital structure, to broaden the ownership base, to acquire assets related to the company's business or to finance or carry out other business transactions, or for other purposes decided by the Board of Directors. However, the authorisation may not be used for the implementation of incentive programmes of the company's management or key personnel. The authorisation is valid until the end of the next Annual General Meeting, but no longer than until 30 June 2024 at the latest. For the sake of clarity, the authorisation revokes previous non-utilised authorisations to decide on share issuance.

In accordance with the Board of Directors' proposal, the AGM authorised the Board of Directors to decide on the issue of shares, option rights and other special rights entitling their holders to shares, as referred to in chapter 10, section 1 of the Limited Liability Companies Act, in one or several instalments as follows: the total number of shares to be issued or transferred under the authorisation may not exceed 400,000 shares (including shares issued based on special rights), which corresponds to around 4.12% of all the shares in the company.

The Board of Directors will decide on all the conditions of the issue of shares, stock options and other special rights entitling to shares. Pursuant to the authorisation, new shares may be issued and treasury shares held by the company may be transferred. The new shares may be issued and the treasury shares held by the company may be transferred either for consideration or without consideration. The authorisation also includes the right to decide on the issuance of new shares to the company itself without consideration. Based on the authorisation, the Board of Directors may decide on the issue of shares, stock options and other special rights entitling to shares in deviation of the pre-emptive subscription right of the shareholders (directed issue) subject to conditions mentioned in the Limited Liability Companies Act. Shares, stock options or other special rights entitling to shares may be issued in a directed issue as part of the implementation of the company's share-based incentive schemes, such as the implementation of stock options and restricted share plan planned by the Board of Directors. The authorisation is valid until 13 April 2028. For the sake of clarity, the authorisation

revokes previous non-utilised authorisations to decide on the issue of shares, stock options and other special rights entitling to shares.

Board of Directors and management

On 13 April 2023, Componenta's Annual General Meeting (AGM) confirmed, in accordance with the proposal of the Shareholders' Nomination Board, that the Board of Directors consisted of four (4) members. The AGM re-elected Harri Suutari, Anne Leskelä, Tomas Hedenborg and Petteri Walldén as the members of the Board. The Board members' term of office ends at the close of the next AGM.

At its organisation meeting after the AGM, the Board of Directors elected Harri Suutari as Chair of the Board and Anne Leskelä as Vice Chair of the Board.

On 31 December 2023, the Group's Corporate Executive Team consisted of the following members: Sami Sivuranta, President and CEO; Marko Karppinen, CFO; Pasi Mäkinen, COO; and Hanna Seppänen, General Counsel.

Share-based incentive scheme

Componenta has one long-term share-based incentive plan: an option programme. Option programmes are used to encourage key employees to commit to longterm employment at the company in order to increase shareholder value. The goal of the option rights is to ensure that key employees stay with the company.

Under the authorisation granted by the Annual General Meeting on 13 April 2023, Componenta Corporation's Board of Directors decided to launch an option programme for the company's key personnel. Option programmes are used to encourage key employees to commit to long-term employment at the company in order to increase shareholder value. Option rights are also intended to commit key personnel to the company. The maximum number of option rights to be issued is 400,000. The option rights entitle their holders to subscribe for a maximum of 400,000 new shares in the company or shares held by the company. The option rights are issued without consideration. Of the option rights, 133,348 will be marked as option 2023A, 133,326 will be marked as option 2023B, and 133,326 will be marked as option 2023C. The shares to be subscribed for based on

the option rights to be issued correspond to a total maximum of 3.9% of all the shares and votes in the company after any share subscriptions if new shares are issued to be subscribed for. The target group of the option programme consists of around 15 key people, including the members of the Group's Corporate Executive Team. During the 2023 financial year, Componenta Corporation's Board of Directors decided on a new option programme for key personnel in line with the authorisation granted by the 2023 Annual General Meeting. A total of 133,348 option rights 2023A was allocated to personnel.

On the balance sheet date, the company had three option programmes: 2018B, 2018C and 2023A. Their valuation was carried out using the Black-Scholes model. On the balance sheet date, there were a total of 246,108 option rights, entitling their holders to subscribe for a maximum of 358,868 new shares in the company or shares held by the company. The subscription prices are as follows: EUR 3.85 for a 2018B option right; EUR 2.91 for a 2018C option right; and EUR 3.00 for a 2023A option right.

In the 2023 financial year, 3,700 option rights 2018C and 8,334 option rights 2023A returned to the company. The option rights returned to company had not been transferred forward by the balance sheet date. The subscription period for the 2018A option programme ended in November 2023. The subscription period for the 2018B option programme began in December 2022, and the subscription period for the 2018C option programme began in December 2023. During the financial year, no option rights from the current option programmes were exercised for the subscription of shares.

Share capital and shares

The shares of Componenta Corporation are listed on the Nasdaq Helsinki. The average share price during the financial year was EUR 2.67 (EUR 2.77). The lowest price was EUR 2.20 (EUR 2.02), and the highest was EUR 3.2 (EUR 3.65). The quoted price at the end of the year was at EUR 2.35 (EUR 2.34). The market value of all shares in the company at the end of the year was EUR 22.8 million (EUR 22.7 million), and the volume of shares traded during the financial year was 20.3 % (23.9 %) of all shares in the company.

Componenta Corporation's share capital was EUR 1.0 million (EUR 1.0 million) at the end of the financial year. The total number of shares in the company was 9,712,757 (9,712 757) at the end of the financial year. The company had 6,975 (7,257) shareholders at the end of the financial year.

Annual General Meeting

Componenta Corporation's Annual General Meeting will be held on Wednesday 10 April 2024 at 10 am EEST in Vantaa, Finland. The notice of meeting will be published as a separate stock exchange release.

Financial information in 2024

In 2024, Componenta will publish its financial reports as follows:

• Business review for January–March 2024 on Tuesday 7 May 2024
• Half-year financial report for January–June 2024 on Tuesday 23 July 2024
• Business review for January–September 2024 on Friday 1 November 2024.

The 2023 Annual Review, including the financial statements and the Board of Directors' report, will be published during the week beginning 13 March 2023 at the latest.

Alternative key financial ratios

Componenta publishes certain commonly used key financial ratios that can be derived from the IFRS financial statements. The calculation formulas for these performance measures are presented at the end of this release.

Helsinki 1 March 2024

COMPONENTA CORPORATION Board of Directors

Financial statements release tables

Consolidated income statement

		Adjusted
	Jan 1–Dec 31,	Jan 1–Dec 31,	Jul 1–Dec 31,	Jul 1–Dec 31,
EUR thousand	2023	2022	2023	2022
Net sales	101,809	109,087	41,581	54,679
Other operating income	751	328	463	293
Operating expenses	-97,283	-102,329	-42,178	-51,714
EBITDA	5,278	7,086	-133	3,258
% of net sales	5.2%	6.5%	-0.3%	6.0%
Depreciation, amortization and write-downs	-1,516**	-5,521*	1,396**	-2,747*
Operating result	3,762**	1,565*	1,263**	512*
% of net sales	3.7%**	1.4%*	3.0,%**	0.9%*
Financial income and expenses	-2,193	-1,662	-1,064	-942
Result after financial items	1,568	-97	199	-430
% of net sales	1.5%	-0.1%	0.5%	-0.8%
Income taxes	-21	158	-74	73
Result for the financial period	1,547	61	125	-357
Allocation of result for the period
To equity holders of the parent	1,547	61	125	-357
Earnings per share calculated on result attributable to the shareholders of the parent company
- Basic earnings per share, EUR	0.16	0.01	0.01	-0.04
- Diluted earnings per share, EUR	0.16	0.01	0.01	-0.04

* The year 2022 has been adjusted due to a change in the principle of preparing real estate valuations. More information about the change in the accounting principle and its effects on previous years' figures can be found in the section "Valuation of properties and land areas" in the financial statement release.

** The operating result for 2023 includes a non-recurring income of EUR 4.2 million from the reversal of the impairment loss related to the foundry business's production machinery and equipment. More information on the reversal of the impairment loss can be found in the section "Tangible and intangible assets" in the financial statement release

Consolidated statement of comprehensive income

EUR thousand	Jan 1–Dec 31, 2023	Jan 1–Dec 31, 2022	Jul 1–Dec 31, 2023	Jul 1–Dec 31, 2022
Net result	1,547	61	125	-357
Total comprehensive income	1,547	61	125	-357
Allocation of total comprehensive income
To equity holders of the parent	1,547	61	125	-357

Consolidated statement of financial position

EUR thousand	Dec 31, 2023	Adjusted Dec 31, 2022
Assets
Non-current assets
Intangible assets	1,995	1,985
Goodwill	3,225	3,225
Tangible assets	30,974	26,993*
Investment properties	0	17
Receivables	413	521
Deferred tax assets	0	21*
Total non-current assets	36,607	32,762
Current assets
Inventories	12,628	13,258
Trade and other receivables	2,778	3,945
Cash and cash equivalents	5,277	8,600
Total current receivables	20,683	25,804
Total assets	57,290	58,565
EUR thousand Shareholders' equity and liabilities	Dec 31, 2023	Dec 31, 2022
Shareholders' equity
Share capital	1,000	1,000
Other equity	24,550	22,900*
Equity attributable to equity holders of the parent company	25,550	23,900
Shareholders' equity	25,550	23,900
Liabilities
Non-current liabilities
Interest-bearing liabilities	11,294	9,850
Interest free liabilities and capital loans	625	688
Provisions	14	14
Total non-current liabilities	11,934	10,552
Current liabilities
Interest bearing liabilities	3,080	3,568
Interest free liabilities	16,392	20,183
Provisions	334	363
Total current liabilities	19,806	24,114
Total liabilities	31,740	34,666
Total shareholders' equity and liabilities	57,290	58,565

* The year 2022 has been adjusted due to a change in the principle of preparing real estate valuations. More information about the change in the accounting principle and its effects on previous years' figures can be found in the section "Valuation of properties and land areas" in the financial statement release.

Condensed consolidated cash flow statement

EUR thousand	Jan 1–Dec 31, 2023	Adjusted Jan 1–Dec 31, 2022
Cash flow from operating activities
Result after financial items	1,568	-97*
Depreciation, amortization and write-downs	1,516	5,521*
Net financial income and expenses	2,193	1,662
Other income and expenses, adjustments to cash flow**	-791	-1,026
Change in net working capital	-1,289	1,771
Cash flow from operations before financing and income taxes	3,198	7,829
Interest received and paid and dividends received	-2,072	-1,658
Net cash flow from operating activities	1,126	6,171
Cash flow from investing activities
Capital expenditure in tangible and intangible assets	-2,794	-2,441
Sale of tangible and intangible assets	45	40
Net cash flow from investing activities	-2,749	-2,401
Cash flow from financing activities
Repayment of lease liabilities	-1,748	-1,542
Share issue	0	497
Cost of share issue	0	-9
Repayment of current loans	-1,952	-1,347
Draw-down of non-current loans	2,000	2,000
Net cash flow from financing activities	-1,700	-401
Change in liquid assets	-3,323	3,369
Cash and cash equivalents at the beginning of the period	8,600	5,231
Cash and cash equivalents at the period end	5,277	8,600

* The year 2022 has been adjusted due to a change in the principle of preparing real estate valuations. More information about the change in the accounting principle and its effects on previous years' figures can be found in the section "Valuation of properties and land areas" in the financial statement release.

** Other income and expenses, adjustments to cash flow mainly consist of payments in accordance with the payment schedules of payment reliefs granted by the tax office in 2020–2022 due to the COVID-19 pandemic.

Statement of changes in consolidated shareholders' equity

		Unrestricted	Revaluation of			Share holders'
EUR thousand	Share	equity	buildings and	Other	Retained	equity
Shareholders' equity Jan 1, 2023	capital 1,000	reserve 17,010	land areas 0	reserves 2,507	earnings 3,383	total 23,900
Net result					1,547	1,547
Total comprehensive income	0	0	0	0	1,547	1,547
Transaction with owners:
Option and share-based compensation					103	103
Directed share issue
Transactions with owners, total	0	0	0	0	103	103
Shareholders' equity Dec 31, 2023	1,000	17,010	0	2,507	5,033	25,550
EUR thousand	Share capital	Unrestricted equity reserve	Revaluation of buildings and land areas	Other reserves	Retained earnings	Share holders' equity total
Shareholders' equity Jan 1, 2022	1,000	16,522	382	2,507	3,047	23,458
Changes in accounting principles*			-382		146	-236
Adjusted shareholders' equity Jan 1, 2022	1,000	16,522	0	2,507	3,192	23,221
Net result*					61	61
Total comprehensive income	0	0	0	0	61	61
Transaction with owners:
Option and share-based compensation					129	129
Directed share issue		488				488
Transactions with owners, total	0	488	0	0	129	617
Shareholders' equity Dec 31, 2022	1,000	17,010	0	2,507	3,383	23,900

* More information about the change in the accounting principle and its effects on previous years' figures can be found in the section "Valuation of properties and land areas" in the financial statement release.

Group development

Group development by quarter

EUR thousand	Q4/23	Q3/23	Q2/23	Q1/23	Q4/22	Q3/22	Q2/22	Q1/22
Net sales	21,672	19,910	29,502	30,726	30,062	24,617	28,896	25,512
EBITDA	-533	399	2,611	2,800	2,788	470	2,374	1,453
Operating result	-1,930	3,193	1,129	1,370	1,413	-907	999	50
Net financial items	-542	-522	-640	-489	-372	-571	-334	-386
Result after financial items	-2,472	2,671	489	880	1,042	-1,478	665	-336

Order book at period end

EUR thousand	Q4/23	Q3/23	Q2/23	Q1/23	Q4/22	Q3/22	Q2/22	Q1/22
Order book	14,532	13,539	10,419	16,579	18,481	18,741	13,429	16,193

Accounting principles

Componenta Corporation's 2023 financial statements release has been prepared in line with IAS 34 Interim Financial Reporting and should be read in connection with Componenta's 2022 financial statements, which were published on 16 March 2023. Componenta has switched to the acquisition cost model enabled by the IAS 16 Property, Plant and Equipment standard when valuing its properties in 2023. In its financial statements from 2012 to 2022, Componenta has applied the revaluation model in accordance with the IAS 16 standard to the valuation of its properties. More information about the change in the accounting principle can be found in the section below "Valuation of properties and land areas". Otherwise Componenta has applied the same accounting principles to the financial statements release as it applied to its 2022 financial statements. The Financial Statements Release has not been audited.

New applied standards

Componenta has applied standard changes and interpretations relevant to Componenta that came into force during the financial period. The IFRS accounting standards that entered into force in 2023 and their changes did not have a significant impact on the consolidated financial statements.

Segment information

Componenta provides its customers with services throughout the supply chain, including method design, casting, machining, metal sheet cutting, pipe products, forged blanks, surface treatments and logistics services, thus creating value-added total solutions for customers. Componenta's main products for sale are cast and machined metal components, as well as forged blanks, pipe products and metal sheet cuttings. The company's subcontracting network further expands its offering. Componenta's highquality metal components are used in mechanical engineering, agricultural and forestry machinery and the energy industry. Componenta's customers are global machine and equipment manufacturers, with whom Componenta has long-term customer relationships. Sales revenue that is insignificant from the Group's perspective is received from the leasing of office space and industrial premises.

The Chief Operating Decision Maker at Componenta is its President and CEO. The Group's Corporate Executive Team and other management assist and support the President and CEO in its duties.

Componenta has identified several operating segments, but due to the similarity of the operating segments' financial characteristics, long-term sales margins and sales growth trends, only one reportable segment. Therefore, Componenta's business is presented as a single entity. When comparing the financial characteristics of the operating segments, the company has analyzed the nature of products and services, the nature of production processes, customer types and groups of products and services, distribution channels and the regulatory environment. Componenta also reports on the distribution of its net sales between geographical areas and net sales on customers whose share of the group's net sales is more than 10 percent.

Accounting principles requiring the management's judgement

When preparing the financial statements in accordance with the International Financial Reporting Standards, the management needs to make estimates and assumptions concerning the future. The estimates and assumptions that involve a significant risk of material changes in the carrying amounts of assets and liabilities during the next 12 months are presented below.

Componenta's financial statements for the financial year 2023 have been prepared based on the principle of going concern. When evaluating the going concern, Componenta has analyzed the liquidity risk and the adequacy of funding. When evaluating the adequacy of the financing, Componenta's management has taken into account, among other things, the points described in the next paragraph.

Componenta's sales volumes are at a good level despite the risks caused by the Russian war of aggression and the intensified geopolitical situation. Short-term, temporarily weakened order books have been successfully responded to with timely and sufficient adjustment measures. There have been no disruptions or restrictions in the availability of

electricity and, based on the indices, changes in the price of electricity are transferred to customer prices in an average of three months. At the end of the review period, the group's cash and cash equivalents totalled EUR 5.3 million (EUR 8.6 million). The group's liquidity was at a reasonable level. In addition, at the end of the review period, Componenta also had unused binding revolving credit facilities of EUR 4.0 million and from GCF, an investor based in the United States, a share subscription facility which is valid until June 2024, with the unused portion of USD 7.5 million from the total USD 8.0 million. In addition, the withdrawal of the second and consequently the last instalment of the EUR 4.0 million working capital loan agreed in December in the amount of EUR 2.0 million was made in March 2023. Componenta's net liabilities were EUR 9.1 million (EUR 4.8 million). According to the company's understanding, the group can also obtain debt financing from the market if necessary. The management has analyzed the companies' cash flow forecasts for the next 12 months.

In addition to assessing the going concern principle, the management has made other significant estimates and assumptions in determining the valuation of assets in the financial statements, such as investment properties, goodwill, tangible and intangible assets and inventories, as well as the realisability of deferred tax receivables and contingent liabilities. The management has also assessed the impact of high inflation and market interest rates on the preparation of the financial statements and on the valuations of the above-mentioned assets. The management has also assessed accounts receivables. The management has assessed the situation in terms of both the company's own industry and the overall economic situation. The assessment did not have a material impact on the credit loss provision in the financial statements. Componenta regularly updates its credit loss provision. Componenta continuously assesses the impact related to Russian war of aggression and the intensified geopolitical situation on its financial reporting. Componenta closely monitors market development and its customers' situation and adjusts its operations accordingly. The management has assessed any indications of impairment of assets and reversal of impairments. These estimates and assumptions involve risks and uncertainty, and it is therefore possible that these forecasts will change when the circumstances change, which may affect the recoverable amount of

assets. More information about annual impairment testing is provided in the notes to the 2023 financial statements.

In addition, the management's judgement has been applied to determining the balance sheet value of a piece of equipment acquired by Componenta Manufacturing Oy and the related liability. The valuation of the asset and the financial liability has been affected by an estimate of the operating hours of the equipment over the next 10 years, and by the effective interest method.

Valuation of properties and land areas

In 2023, Componenta has switched to using the acquisition cost model permitted by the IAS 16 standard for land, buildings and structures, where properties and land are recorded in the balance sheet at the initial acquisition cost, less depreciation and depreciation according to the plan. The previously used revaluation model has been changed to acquisition cost model at the end of the financial year, because the acquisition cost model is estimated to provide more reliable and relevant information about the effects of transactions, other events or circumstances on the entity's financial position, financial result and cash flows. The revaluation model has been in use at Componenta since December 31, 2012, and according to the accounting principle, land areas, buildings and structures have been recorded at fair values, which were based on assessments made by independent valuers and from which, in the case of buildings, depreciation after revaluation was deducted. In 2012, according to the company's strategy, real estate was developed as a separate business, which is why the revaluation model was a more suitable accounting principle. However, the company has since given up owning real estate as a business area and has sold a large part of the real estate it owns. In practice, the company only owns production plants that are in its own use. Therefore, switching to the acquisition cost model is a more conventional way of valuing fixed assets on the balance sheet in a group engaged in industrial manufacturing activities. In December 2023, an external independent assessment of the properties owned by the company was also carried out, according to which the recoverable amounts of the properties exceed the accounting values and there are no write-down needs at the time of closing the

accounts. The change in the accounting principle has been made retroactively in accordance with IAS 8 and has had an impact on the opening balance sheet and the result of the comparison period. Componenta does not prepare a third balance sheet in accordance with IAS 1, because the change in the accounting

principle has an immaterial effect on the information contained in the balance sheet. The effects of the retrospective change in the accounting principle on the result and balance sheet of previous years are shown in the attached table:

			ADJUSTMENTS	ADJUSTED		ADJUSTMENTS	ADJUSTED
EUR Thousand		Jan 1, 2022			Jan 1, 2022 Dec 31, 2022		Dec 31, 2022
ASSETS
NON-CURRENT ASSETS
Tangible assets	1	28,332	-313	28,019	27,296	10	26,993
Deferred tax assets	2	532		532	521	21	542
Non-current assets total		33,902	-313	33,589	33,044	30	32,762
ASSETS TOTAL		55,479	-313	55,166	58,848	30	58,565
EUR Thousand	Jan 1, 2022				Jan 1, 2022 Dec 31, 2022		Dec 31, 2022
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Other reserves	3	2,889	-382	2,507	2,889		2,507
Retained earnings	4	3,451	146	3,597	3,175		3,321
Result for the period	4	-405		-405	52	10	62
Shareholders' equity total		23,458	-236	23,221	24,126	10	23,900
LIABILITIES
Non-current liabilities
Deferred tax liabilities	2	214	-76	138	56	21	0
Non-current liabilities total		10,482	-76	10,405	10,608	21	10,552
Liabilities total		32,022	-76	31,945	34,721	21	34,666
SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL		55,479	-313	55,166	58,848	30	58,565

¹ For tangible assets, revaluation of properties made in previous years have been retroactively canceled and depreciation for the years 2019-2022 has been adjusted.

² The balances of deferred tax assets and liabilities have changed because the balances recorded for temporary differences in properties included in the items have been written off.

³ The revaluation of buildings and land areas has been liquidated retroactively as a counter entry to the cancellation of properties' revaluations of tangible assets.

⁴ Retained earnings and the result of the financial year 2022 have been adjusted because the depreciation of the years 2019-2022 related to revaluation of properties has been adjusted. In addition, profits have been adjusted to the extent of the change in deferred tax liabilities.

In connection with the change in the accounting principle for real estate valuation, the management has also used judgment and decided to write down the investment properties that were worth EUR 17.0 Thousand in the company's balance sheet due to their low financial statement information value.

Net sales

Componenta Corporation is an international technology group and Finland's leading contract manufacturer in the engineering industry. Componenta and its predecessors have more than 200 years of experience in metal processing, method design, product development co-operation and various manufacturing methods, as well as their development. The group's operational functions are located in Finland. Componenta's technology portfolio is extensive. The group manufactures both cast and machined metal components as well as forgings, pipe

products and plate sections. Componenta's business model is built on long-term customer relationships. The group's customers are global machine and equipment manufacturers. Componenta's production is focused on serving the customer flexibly, especially in short and medium-sized production series. The wide range of production units covers sizes ranging from hundreds of grams to thousands of kilograms, volumes available from pieces to tens of thousands of series, and many different material options.

Net sales by market area

EUR thousand	Jan 1–Dec 31, 2023	Jan 1–Dec 31, 2022
Finland	82,813	87,093
Sweden	11,286	12,377
Germany	2,374	3,462
Other European countries	5,010	5,234
Other countries	312	657
Rental income*	0	279
Internal items/eliminations	13	-16
Total	101,809	109,087

Country-specific net sales reflect the destination where goods have been delivered.

* Rental income is presented in 2023 under other operating income.

Net sales by business area

Jan 1–Dec 31, 2023	Jan 1–Dec 31, 2022
45	46
30	31
7	7
9	8
4	2
5	6
100	100

Net sales by customer

Componenta has one significant customer, which share of the net sales is over 10%. The customer's share of the Group's net sales is 29.1% (26.7%).

Tangible and intangible assets

Changes in tangible assets

EUR thousand	Dec 31, 2023	Dec 31, 2022
Acquisition cost at the beginning of the period	136,915	133,345
Changes in accounting principles**	0	-382
Adjusted acquisition cost at the beginning of the period	136,915	132,963
Additions	3,817	3,192
Revaluation of machinery and equipment*	4,235	0
Disposals and transfers between items	1,093	760
Acquisition cost at the end of the period	146,060	136,915
Accumulated depreciation at the beginning of the period	-109,922	-105,013
Changes in accounting principles**	0	69
Adjusted accumulated depreciation at the beginning of the period	-109,922	-104,944
Depreciations, amortizations and write-downs during the period	-5,164	-4,978
Accumulated depreciation at the end of the period	-115,086	-109,922
Carrying amount at the end of the period	30,974	26,993

Changes in intangible assets

Dec 31, 2023	Dec 31, 2022
22,321	21,590
249	424
348	306
22,919	22,321
-20,336	-19,794
-587	-542
-20,924	-20,336
1 995	1 985

Goodwill
EUR thousand	Dec 31, 2023	Dec 31, 2022
Acquisition cost at the beginning of the period	3,225	3,225
Carrying amount at the end of the period	3,225	3,225

* In 2023 the reversal of the impairment loss related to the foundry business's production machinery and equipment was made in the value of EUR 4.2 million.

** The year 2022 has been adjusted due to a change in the principle of preparing real estate valuations. More information about the change in the accounting principle and its effects on previous years' figures can be found in the section "Valuation of properties and land areas" in the financial statement release.

At the end of each reporting period, Componenta assesses whether there is any indication that the impairment loss recorded for the asset - other than goodwill - in previous periods may no longer exist or that it may have decreased. If any indication exists, Componenta estimates the recoverable amount of that asset. When evaluating indications of a decrease in impairment losses, Componenta evaluates external and internal sources of information. If there has

been a change in the estimates that have been used to determine the recoverable amount of the asset when recording the impairment loss, the reversal of the impairment loss is recorded with effect on profit. However, the increased book value due to the reversal of the impairment loss will never exceed the book value that the asset would have had without the impairment loss entry made at the time.

Changes in right-of-use assets

EUR thousand	Dec 31, 2023	Dec 31, 2022
Acquisition cost at the beginning of the period	9,521	9,015
Additions	1,272	1,176
Transfers between items	1,473	1,256
Depreciation	-2,166	-1,926
Carrying amount at the end of the period	10,100	9,521

Values of financial assets and liabilities

			Investments measured
	Financial assets	Financial assets	at fair value
	and liabilities at fair value through	and liabilities measured at	through other comprehensive	Lease
Dec 31, 2023, EUR thousand	profit and loss	amortised cost	income	liabilities	Total
Non-current assets
Other receivables		90			90
Current assets
Cash and cash equivalents		5,277			5,277
Accounts receivables		1,847			1,847
Total financial assets		7,214			7,214
Non-current liabilities
Loans from financial institutions		2,372			2,372
Lease liabilities				8,922	8,922
Other loans		0			0
Trade payables and advances received		175			175
Current liabilities
Loans from financial institutions		1,141			1,141
Lease liabilities				1,939	1,939
Other loans		0			0
Trade payables and advances received		8,044			8,044
Total financial liabilities		11,732		10,861	22,593

			Investments
	Financial assets	Financial assets	measured at fair value
	and liabilities at fair value through	and liabilities measured at	through other comprehensive	Lease
Dec 31, 2022, EUR thousand	profit and loss	amortised cost	income	liabilities	Total
Non-current assets
Other receivables		90			90
Current assets
Cash and cash equivalents		8,600			8,600
Accounts receivables		2,455			2,455
Total financial assets		11,145			11,145
Non-current liabilities
Loans from financial institutions		1,527			1,527
Lease liabilities				8,323	8,323
Other loans		0			0
Trade payables and advances received		189			189
Current liabilities
Loans from financial institutions		1,909			1,909
Lease liabilities				1,639	1,639
Other loans		20			20
Trade payables and advances received		10,511			10,511
Total financial liabilities		14,155		9,962	24,117

The fair values of financial assets and liabilities are materially similar to their carrying amounts.

The Group's financial assets are initially classified in the following categories: assets measured at amortised cost, at fair value through profit and loss or at fair value through other comprehensive income. When assessing the expected impairment for financial assets measured at amortised cost, the expected credit losses are measured and recognised based on aging classification. Financial liabilities are classified in the following categories: financial liabilities at fair value through profit and loss, lease liabilities and financial liabilities at amortised cost.

Componenta has also assessed the impact of the Russian war of aggression and the intensified geopolitical situation regarding the most significant financial risks. From Componenta's point of view the greatest impact has been on the financing risk and liquidity risk.

Loans are initially recognised at fair value and valued thereafter at amortised cost using the effective interest rate method. Substantial transaction costs are taken into account when calculating the acquisition cost.

Cash and cash equivalents include cash in hand and cash in bank accounts as well as short-term bank deposits.

The Group does not have derivative financial instruments on which hedge accounting would be applied.

Contingent liabilities

EUR thousand	Dec 31, 2023	Dec 31, 2022
Business mortgages
For own debts	17,600	17,600
Pledges
For own debts	0	7,800
Other leasing commitments	460	281
Other commitments	68	188
Total	18,128	25,869
Secured liabilities
EUR thousand	Dec 31, 2023	Dec 31, 2022
Liabilities secured with pledges, real estate or business mortgages
Loans from financial institutions	3,513	3,436
Total	3,513	3,436

Componenta Corporation owns 3.6% of the shares of Majakka Voima Oy. Majakka Voima Oy owns Voimaosakeyhtiö SF's shares. Voimaosakeyhtiö SF is the main owner of Fennovoima Oy. Componenta has not participated in further funding of Majakka Voima Oy after 2013 and has fulfilled its obligations towards Majakka Voima Oy. Finnish Patent and Registration Office has placed Majakka Voima Oy into liquidation on 16 September 2022. Componenta has written down Majakka Voima Oy's shares in its accounting

completely in 2016. Voimaosakeyhtiö SF and some of its shareholders have approached Majakka Voima Oy with claims based on Voimaosakeyhtiö SF's shareholder agreement and related financial commitments. According to Componenta's assessment, it is unlikely that there are significant financial consequences to Componenta, as a result of which Componenta's figures for the review period do not include provisions or contingent liabilities related to this matter.

Related party transactions

Componenta Group's related parties include the parent company, subsidiaries, company management and their related parties. The company management consists of the Board of Directors, CEO and Executive Board. Management's related parties consist of their immediate family and closely associated

parties. Componenta did not have any related party transactions in 2023 nor 2022 that deviated from the usual commercial terms. Salaries and remunerations paid to the management are presented annually in the consolidated financial statements.

Group's key figures

	Dec 31, 2023	Dec 31, 2022
Equity ratio, %	45.0	41.1
Equity per share, EUR	2.63	2.48
Invested capital at period end, EUR thousand	39,924	37,544
Return on investment, %	9.8	4.3
Return on equity, %	6.2	0.2
Net interest-bearing debt, EUR thousand	9,097	4,818
Net gearing, %	35.6	20.0
Order book, EUR thousand	14,532	18,481
Capital expenditure excl. lease liabilities, EUR thousand		2,441
Capital expenditure incl. lease liabilities, EUR thousand 4,066		3,617
Capital expenditure incl. lease liabilities, % of net sales 4.0		3.3
Average number of personnel during the period 589		588
Average number of personnel during the period, incl. leased personnel 631		643
Number of personnel at period end 584		592
Number of personnel at period end, incl. leased personnel 615
Share of export and foreign activities in net sales, % 18.6
Contingent liabilities, EUR thousand 10,428		25,869

Per Share Data	Dec 31, 2023	Dec 31, 2022 0.01
Basic earnings per share, EUR	0.16
Diluted earnings per share, EUR	0.16	0.01
Cash flow per share, EUR	0.12	0.63

Calculation of key financial ratios

		Profit (Group) after financial items – income taxes x 100
Return on equity, % (ROE)	=	Shareholders' equity without preferred capital notes + non-controlling interest (starting & closing balance average)
Return on investment, %		= Profit (Group) after financial items + interest and other financial expenses x 100
(ROI)		Shareholders' equity + interest bearing liabilities (starting & closing balance average)
Equity ratio, %		= Shareholders' equity, preferred capital notes excluded + non-controlling interest x 100
		Balance sheet total – advances received
Basic earnings per share,		= Profit after financial items – income taxes +/– non-controlling interest
EUR (EPS)		Average number of shares during the financial period
Earnings per share with dilution, EUR	=	As above, the number of shares has been increased with the possible warrants outstanding. When calculating the dilution effect of warrants, the number of shares has been adjusted with the number of own shares which the company could have acquired, if it would have used the funds generated from the warrants to buy back of own shares at market price (= average trading price). After tax interest expense of the possible convertible loan has been added to the profit of the period. Number of shares that can be subscribed by the loan has been added to the number of total shares.
Cash flow per share,		= Net cash flow from operating activities
EUR (CEPS)		Average number of shares during the financial period
Average trading price, EUR = Trading volume
		Number of shares traded during the financial period
Equity per share, EUR		= Shareholders' equity, preferred capital notes excluded
		Number of shares at period end
Dividend per share, EUR		= Dividend Number of shares at period end
Payout ratio, %		= Dividend x 100 Earnings (as in Basic earnings per share)
Effective dividend yield, %		= Dividend per share x 100 Market share price at period end
Market capitalization, EUR		= Number of shares x market share price at period end
P/E multiple		= Market share price at period end Basic earnings per share
Net interest bearing debt, EUR		= Interest bearing liabilities + preferred capital notes – cash and bank accounts
		= Net interest bearing liabilities x 100
Net gearing, %		Shareholders' equity, preferred capital notes excluded + non-controlling interest
EBITDA, EUR		= Operating profit + Depreciation, amortization and write-downs +/– Share of the associated companies' result