Componenta 2013	4
President's review	5
Key figures	7
(e year in brief	8
Strategy	10
Strategic measures	12
Business	13
Business environment	16
Customers	17
Business segments	19
Foundry division	21
Machine shop division	23
Aluminium division	24
Business development	25
Sustainability	27
Environmental impact	30
Responsible sourcing and raw materials	32
Product development	34

Waste and recycling	39
Responsible employer	42
Efficiency program 2013	44
Competence development	46
Occupational safety and wellbeing	48
Stakeholder engagement	49
Stakeholder value	50
Improving profitability	52
Responsible management	55
GRI content Index table	56
Reporting principles	59

Governance

Corporate Governance	60
General Meeting	62
Board of Directors	63
Board Committees	65
President and CEO	66
Corporate Executive Team	67
Remuneration	68
Risk management and control	71
Audit	73
Communications	74

This PDF has been generated from Componenta's OnlineAnnualReport 2013 and only contains the parts specified and downloaded by the user.Please visit www.componentareports.com/2013/en forthe full online report.

Energy efficiency

Emissions

Board of Directors	75
Corporate Executive Team	77
Financial Statement	80
Key economic figures	81
Information for investors	84

Componenta 2013

e second largest supplier of cast components and casting solutions in Europe. We serve our customers locally and globally.

Componenta is the second largest supplier of cast components and casting solutions in Europe.e company's operations are based on excellence and experience in cast components,their engineering and manufacture.

Componenta has a global market. Its customers are wellknown manufacturers of vehicles,machines and equipment, often marketleaders in their sectors.With an extensive offering and services tailored for each customer sector,Componenta is able to meetthe challenges of each sector and its customers and coverthe complete cast component supply chain.

In 2013,Componenta's net sales amounted to EUR 511 million and the number of employees to approximately 4,400.e Group has production units in four countries and customer service centres in ten countries.

In 2013, Componenta's net sales amounted to EUR 511 million and the number of employees to approximately 4,400. "

e shares of Componenta Corporation are quoted on the NASDAQ OMX Helsinki, and the shares of Componenta's subsidiary,Componenta Dokümcülük AS, are quoted on the Istanbul Stock Exchange.

For the reader

e text portion of Componenta's 2013Annual Report has been published as an online report.e text portion covers the Group and its business, including matters such as sustainability, development and measures taken in 2013. e full financial statements, including the report by the Board of Directors and the auditor's report,have been added to the online report as a PDF file.e Corporate Governance Statementfor 2013 has been published separately.Allreports are available online at www.componenta.com.

Visit also our website www.componenta.com for more information about our business, sustainability and offering. "

President´ s review

In 2013, we focused on the implementation of our efficiency program with the aim of strengthening the foundation for profitable business operations and growth overthe coming years.

As a whole, 2013 was a satisfactory yearfor Componenta, even though market expectations were notfully met towards the end ofthe year. In the difficult operational environment characterised by economic uncertainty, market demand remained modest, influencing our sales.

Componenta's customer segments developed individually. In the heavy trucks industry, our customers'volumes increased towards the end ofthe year.However, demand declined in the construction and mining industry, particularly for mining machinery and equipment. Demand varied in the machine building industry, but still remained atthe previous year's level on the whole. Demand for agricultural machinery remained steady and Componenta increased its market share,unlike in the automotive industry, where demand remained low.2e fluctuation in demand affected our order and sales figures. In the first part ofthe year, sales remained low, but improved during the year, and our new sales developed positively.During the last quarter ofthe year, our sales and order book grew by 5% in comparison with the corresponding period in the previous year.

Our main focus area in 2013 was the efficiency program aimed atimproving productivity, quality and profitability and cutting structural costs.Our efficiency program involves development projects and measures in all of our production countries and almost all of our units.2e target ofthe first phase ofthe program is to cut costs and improve profitability by EUR 25 million per year by the end of 2014. In September 2013, we expanded our efficiency program with new projects focused on improving ourfoundries' utilization rates, developing our processes and increasing our profitability.2e objective ofthe new projects is to reduce annual costs by atleast EUR 10 million by the end of 2015.2e program proceeded well during the year, resulting in a structural profitimprovement

of EUR 14.8 million in 2013.2e implemented measures are expected to improve the company's operating result by EUR 25 million in 2014.

In a situation where uncertainty aboutthe development of the economy has significantly affected the demand for investment goods and therefore also the size ofthe market, we have focused our attention on the areas where we can make a difference. Improving productivity in our operations,making our operational structures more efficient, centralizing ourfunctions, cutting unnecessary costs and increasing our market shares have been atthe core of our operations. In orderto be our customers' preferred partner and casting solution provider, we need to have competitive expertise and resources and ensure their continuous development.

In 2013, we invested in the development of our engineering operations,modifying and increasing ourresources in terms of personnel and the necessary tools.2e renewal of production structures and processes is setto continue in 2014, when we will also implementinvestments in Turkey and the Netherlands in orderto improve the quality of our processes and significantly reduce the environmental impact of our component production by reducing emissions and the amount of waste.2ese personnel and process development measures are also our way of operating responsibly.

Overthe pastfew years, we have expanded our presence outside of Europe, in the United States and Russia. In fact, 2013 was the first complete yearfor Componenta's Russian operations.Our presence in the Russian market and local customer service close to our customers operating in Russia has got offto a good start, and we have already made our first major deals and acquired new customers.

Atthe beginning of 2014,many economic indicators are heading in a better direction in Europe, creating the foundation for cautious optimism.Uncertainty factors have decreased,the economic situation is stabilizing and the prerequisites for modest growth are emerging.At Componenta, we will continue to carry out efficiency improvement measures and work hard for our customers and their satisfaction.Our cost savings and, consequently, improved competitiveness have created the necessary prerequisites forincreasing our market shares and improving our utilization rates.

As a whole, all ofthis forms a solid foundation forimproved financial performance, which will also benefit all our stakeholders.

I would like to take this opportunity to express my sincere gratitude to our customers, personnel, owners and investors fortheir valuable cooperation and commitment in 2013.

Heikki Lehtonen

President and CEO

Heikki Lehtonen, President and CEO In addition to the efficiency improvement measures we continued investments in development of customer cooperation and engineering services. "

Key figures

Componenta's key figures 2013 compared to the previous year

Key figures

	2013	2012
Order book, MEUR	87.3	82.9
Net Sales, MEUR	510.5	544.8
Operating profit, excluding one-time items, MEUR	18.2	10.0
% of net sales	3.6	1.8
Result after financial items, excluding one-time items, MEUR	-6.2	-17.6
Return on investment, excluding one-time items,%	5.9	4.0
Return on equity, excluding one-time items,%	-12.8	-24.8
Equity ratio,%	18.9	18.1
Interest bearing net debt, MEUR	229.6	236.4
Net gearing,%	269.6	283.5
Earning/share, excluding one-time items, EUR	-0.55	-0.92
Equity per share, EUR	2.66	3.36
Dividend per share, EUR	0,00*)	0.00
Investmentin production facilities, MEUR	18.9	19.2
Number of personnel at end of year, including leased personnel	4,431	4,277
Capacity utilization rate,%	59	63
Energy consumption,GWh	671	695

*) Board proposal

e year in brief

Key measures at Componenta during the year 2013

Forerunner of foundry business

Componenta, which turned 95 years inNovember, is one ofthe forerunners in the Finnish and European foundry business. Today Componenta is the second largest supplier of cast components and casting solutions in Europe.

Componenta 's strategy 2014 - 2016

Making our vision a reality requires profitability.

In line with the Group strategy,updated in December 2013, we will above all focus on improving our profitability in the nearfuture.

Componenta's mission is Casting Future Solutions and vision is to be preferred casting solution provider, locally and globally.All of our operations are based on Componenta's common values and sustainability principles.

In orderto achieve our vision we supply demanding castings and services covering the complete supply chain to selected industries.While doing so, we focus on the further development of our strategic strengths and the implementation of measures thatimprove our profitability.

Competitive advantage through strengths

Componenta's strategy is based on the Group's diverse production potential and broad product portfolio, enabling the flexible supply of extensive productlines and demanding products.

We also provide our customers with services covering the complete supply chain, such as engineering, casting, machining, surface treatment and logistics services.All of these help us create comprehensive solutions that provide added value for our customers.We serve selected industrial sectors with mutual synergies and companies which have strong, long-term relationships with Componenta.Our geographical focus area is Europe, but we also work with global customers.

In 2014–2016, we will focus on the further development of the strengths listed above.8ey form a unique whole and provide a competitive advantage against other operators in the industry.

Sound foundation for growth

Overthe pastfew years,the casting market has suffered from economic uncertainty.8ere has been too much production capacity in the European casting market and, as a result, several foundries have gone bankrupt.As the number offoundries has declined,meeting customers' casting needs has provided the remaining foundries with opportunities to increase their net sales and market shares.

Due to the challenging market situation,Componenta's profitability has fallen short ofthe targetlevel, and therefore improving profitability is our mostimportant strategic goal overthe shortterm. In October 2012, we initiated a Group-wide efficiency programme in orderto improve productivity and achieve cost savings.8e programme was aimed at a profitability improvement of EUR 25 million per yearin 2013–2014. In September 2013, the efficiency programme was expanded with new projects aimed atincreasing profitability by a further EUR 10 million in 2015. In 2014 and 2015,the efficiency programme will focus on those measures that will improve the quality of our products and operations as well as our productivity, processes and production structure.

Alongside our efficiency programme, we will also continue to take strategic measures to develop our engineering and project management services and strengthen our common One Componenta ways of working, particularly in matters related to quality,health and safety, customer service and enterprise resource planning.

Good profitability forms a solid foundation for business development, while also creating the preconditions for future growth and improved cooperation and partnership with customers.

Componenta's financial objectives 2015

	Objective 2015	Actual 2013
EBIT	minimum 8%	3.6%
Equity ratio	minimum 40%	18.9%
Return on investment	minimum 15%	$5.9%$ ^* )

*) Excluding one-time items
In short term, in years 2012 - 2013, Componenta's targets have been to reach the targets of financial solidity and profitability to degreese the company's debt and to sepieve a good credit rating

All of our operations are based on Componenta's common values and sustainability principles. "

Componenta´s mission

"Casting Future Solutions"

Componenta´s vision

"Preferred casting solution provider both locally and globally."

Componenta´s values

Openness :We are open tonew things, development and change –and thereby also the continuous improvement of our ways of working.

Honesty: We are honest with ourselves and with each other. We do what we promise.

Respect: Our cooperation with our colleagues, supervisors, subordinates, customers and other partners is based on trust and mutualrespect.

Strategic measures

Measures to reach the strategic goals continued in 2013.

Measures to reach strategic goals in 2013

Business operations

Componenta's operations cover all services of a component's supply chain, from engineering to a ready-to-install part of a vehicle, machine or equipment.

Componenta's business is the engineering and manufacture ofiron and aluminium cast components and solutions made from these.

Both globally and locally, we serve our customers who are manufacturers of vehicles,machines and equipment.

Our business operations have been divided into three business segments:the FoundryDivision,the Machine Shop Division and the Aluminium Division. In addition,the Group has a segment called Other Business.

2e division of business into segments means that Componenta's foundries,machine shops and aluminium production units are able to allocate theirresources effectively forthe development ofthe functions and the utilisation of synergies within each division.

Customer service functions, including sales, engineering and product developmentfunctions and logistics services, support our business operations and ensure close cooperation with customers and the provision of expert services throughoutthe supply chain.Componenta has customer service centres in all its production countries – including Finland, Turkey,the Netherlands and Sweden – but also in the United Kingdom, Italy, France,Germany,the United States and Russia.

Our business in 2013

	2013	2012
Order book	87 MEUR	83 MEUR
Net sales	511 MEUR	545 MEUR
Operating profit*)	18 MEUR	10 MEUR
Capacity utilization rate	59%	63%
Investments	19 MEUR	19 MEUR

*) Excluding one-time items

Componenta´s operational units

Net sales by market area

Development of business environment

e demand for Componenta's products and the Group's business operations in 2013 were influenced by changes in the operating environment and customer sectors.

Componenta has a global market.Our customers are wellknown manufacturers of heavy trucks, construction and mining machinery, private cars, agricultural machinery and other machinery and equipment, such as lifts, cranes and diesel engines.

Componenta has production units in four countries and customer service centres in ten countries; we are present and close to our customers in our key market areas.

e demand forthe Group's products and services as well as its business operations are influenced by changes in the operational environment and customer sectors.

In 2013,uncertainty concerning the development ofthe European and world economy affected demand in our customer sectors throughoutthe year.Although demand varied by customer sector during the year,the reduction and postponement of production-related investments showed in Componenta's orderintake and production and supply volumes.

In Componenta's heavy trucks customer sector, demand slowed down in the 2013 summer holiday season after a good first half ofthe year, butit started to increase again towards the end ofthe year.

Atthe beginning of 2014,the order book forthe heavy trucks customer sector was 9% higherthan the year before.

In the construction and mining customer sector, demand remained steady in the early part of 2013, but declined during the later months ofthe year.However,the order book forthe construction and mining customer sector was 6% higher atthe beginning of 2014 than atthe same time in the previous year.

e machine building customer sector had a steady order book throughout 2013.Atthe beginning of 2014,the order book forthe sector was 17% higherthan atthe corresponding time in 2013.

e order book forthe agricultural machinery customer sectorlevelled offafter positive developmentin the early part of 2013.Atthe beginning of 2014,the order book stood 2% lowerthan the year before.

In the automotive customer sector, demand grew in the early part of 2013, but started to decline during the summer.Atthe beginning of 2014,the order book was 9% below the previous year's level.

Componenta's operational units

Production units in four countries
Customer service centres in ten countries

Map ofComponenta's operational units

Customers

Componenta's customers are manufacturers of vehicles, machines and equipmentin various industries. With many ofthem we have long-term relationships and collaboration.

Componenta supplies components castfrom iron and aluminium and solutions made from these to customers operating in five differentindustrial sectors.Our customers are leading operators in these sectors.

We provide our customers with services that coverthe complete component supply chain.We know our customers' industries and challenges and combine these with our expertise in engineering, casting,machining and logistics.We aim to be the preferred casting solution providerfor our customers, both locally and globally.

Heavy trucks, 31% of sales in 2013

We provide customer-specific solutions optimising the shape and material ofthe components in orderto achieve targets, such as the reduced weight of a vehicle.

Our customers include, among others,DAF,Daimler, Iveco, MAN, Scania and Volvo.

Construction and mining, 19% of sales in 2013

We provide solutions to large manufacturers of machinery and equipment,utilising 3D and CAD tools, analyses and simulations.

Our customers include, among others,Bomag,Caterpillar, JCBand Volvo VCE.

Machine building, 18% of sales in 2013

7is major customer segment comprises machine builders from various industrial sectors.We provide solutions and components forthe wind powerindustry,railway machinery and equipment, industrial gear units and so on.

Our customers include, among others,ABB,Atlas Copco, Konecranes,Kone Elevators,NCBLohmann and Wärtsilä.

Automotive, 15% of sales in 2013

We provide aluminium wheels to leading manufacturers. We also produce two wheel types of our own:DJ and MAXX.Demanding engineering allows us to introduce new properties to components and end products.7ese include, among otherthings,reduced weight, improved durability, smallerfuel consumption and,therefore, lower CO2 emissions.

Our customers include, among others,ATU,Borbet, Fiat, Ford,Renault and Tofas.

Agricultural machinery, 17% of sales in 2013

We engage in demanding engineering in cooperation with our customers in orderto meettechnical challenges related to the products.We supply components castfrom iron and aluminium, either cast coated,machined or surface treated according to need.

Our customers include, among others,AGCO,Case New Holland,Claas,Gima,Valtra and T.T.F.

Sales by customer industry Componenta's customers

well-known manufacturers in several industries
locally or globally operating companies

Business segments

Componenta's core business is divided into three segments or divisions: Foundry Division, Machine Shop Division and Aluminium Division.

The division of Componenta's business into segments was renewed atthe end of 2012 when the Group's organization was changed to supportthe implementation ofthe efficiency programme aimed at productivity and profitability improvements.

Instead ofthe previous country-based segments,the Group's business operations were divided into three operational segments:the FoundryDivision,the Machine Shop Division and the Aluminium Division. Since the beginning of 2013,the Group has reported on its business development and financial performance in accordance with the new divisional structure.

As the names imply,the business segments consist ofthe iron foundry,machine shop and aluminium foundry operations and aluminium wheel production in the countries in which Componenta operates: Turkey, Finland, the Netherlands and Sweden.

4e FoundryDivision consists ofthe Group's iron foundries, which are located in Orhangazi in Turkey, in Heerlen and Weertin the Netherlands, and in Iisalmi, Karkkila,Pietarsaari and Pori in Finland.

4e Machine Shop Division comprises the Group's machine shops located in Orhangazi, Turkey, and Främmestad, Sweden.4e division also includes the piston production unitin Pietarsaari, Finland.

4e Aluminium Division includes an aluminium foundry and an aluminium wheel production unit, both of which are located in Manisa, Turkey.

4e segments listed above form the core business of Componenta Group.4ere is also an additional segment called Other Business, which includes the Componenta Wirsbo forges in Sweden,the sales and logistics company Componenta UKLtd in England, service and real estate companies in Finland,the head office functions and the associated companyKumsan A.S. in Turkey.

4e divisional structure reinforces the One Componenta way of working in line with the Group's strategy and safeguards customer service through the efficient supply chain consisting of Componenta's specialised production units and logistics centres. It also enables more efficient utilisation of synergies within each division.

**Share of each division of the Group *)**

	Order book, MEUR	Net sales, MEUR	Operating profit	Personnel
FoundryDivision	51.2	329.0	1,4%	2,875
Machine Shop Division	20.5	115.5	2,3%	382
Aluminium Division	12.8	72.8	13,4%	744
Other Business	21.7	141.9	1,1%	463

*) Including theGroup's internal eliminations, some 30 per cent, and the supply of casting blanks from foundries to machine shops within theGroup

Production tons,1,000 t

Foundry division

e division comprises ofthe Group's iron foundries in Finland, Turkey and the Netherlands.

Foundry Division

Production units	Componenta Orhangazi	Turkey
	Componenta Högfors Componenta Pietarsaari Componenta Pori Componenta Suomivalimo	Finland
	Componenta Heerlen Componenta Weert	Netherlands
Order book	(EUR 55.6 million), 8% below from agricultural machinery, and from	Atthe turn ofthe year,the order book forthe FoundryDivision stood at EUR 51.2 million the previous year's level.e order book comprises orders manufacturers of heavy trucks, construction and mining machinery, and the machine building industry.
Net sales	Net sales forthe FoundryDivision declined from operations, cost savings and the weakening ofthe Turkish lira.	the previous yearto EUR 329 (367) million.e division's operating profit excluding one-time items was EUR 4.6 million (EUR -2.9 million).e operating profitimproved thanks to greater efficiency in
Number of personnel	personnel, was 2,875 (3,126).	In 2013,the number of personnel on average in the FoundryDivision, including leased
Management	e SeniorVice President ofthe FoundryDivision is Olli Karhunen

e key measures taken in the FoundryDivision in 2013 focused on implementing the efficiency programme and the related projects aimed atimproving quality, productivity and cost-efficiency. In addition,the adjustment ofthe number of employees and their working hours to the fluctuating order book continued throughout the year, as did many other measures taken in orderto minimise costs.

Several production layout changes and product improvements were carried out atthe Orhangazi foundry in orderto improve the quality ofthe operations and products.Changes were made in the casting sand system and smelting plant processes in orderto increase

efficiency in the use ofraw materials,reduce the amount of waste and the environmental impact ofthe operations. In the autumn,the company decided to transferthe production line ofthe Pietarsaari foundry to Pori and merge the operations ofthe two foundries.e measures related to this decision and the decision to cut fixed costs played a prominentrole in the Finnish foundries in 2013. In the Dutch foundries,the focus was on the restructuring and the measures aimed atimproving productivity. Towards the end ofthe year, preparations began forthe chimney investmentreducing the flue gases and emissions ofthe foundry, scheduled forthe summer of 2014.

22 This PDF has been generated from Componenta's OnlineAnnualReport 2013 and only contains the parts specified and downloaded by the user.Please visit www.componentareports.com/2013/en forthe full online report.

Machine shop division

e division comprises ofthe Group's machine shops in Turkey and Sweden, and Pistons production unitin Finland.

Machine Shop Division

Production units	Componenta Orhangazi MS	Turkey
	Componenta Främmestad	Sweden
	Componenta Pistons (piston production unit)	Finland
Order book	Atthe turn ofthe year,the order book forthe Machine Shop Division stood at EUR 20.5 million (EUR 18.7 million),10% order book comprises orders from mining machinery, and agricultural machinery, and from	higherthan atthe same time in the previous year.e manufacturers of heavy trucks, construction and the machine building industry.
Net sales	Net sales forthe Machine Shop Division declined slightly from 116 (117) million.e division's operating profit excluding one-time items was EUR 2.7 million (EUR 2.3 million).e operating profitimproved thanks to the cost savings resulting from the efficiency programme and the weakening ofthe Turkish lira.	the previous yearto EUR
Number of personnel	In 2013,the number of personnel on average in the Machine Shop Division, including leased personnel, was 382 (377).
Management	e SeniorVice President ofthe Machine Shop Division is Juha Alhonoja.

e key measures taken in the Machine Shop Division in 2013 were related to the producttransfers from the Främmestad machine shop to the Orhangazi machine shop, where the machining of major series will be concentrated.Atthe Orhangazi foundry,the machine shop was extended and machining capacity was increased. Both machine shops took measures in orderto increase cost-efficiency and productivity.

As a result ofthe decision to double the production capacity ofthe Pistons unitlocated in Pietarsaari, measures aimed atimplementing the investment were initiated in late 2013.e extension ofthe piston production unit,to be completed in 2014, willreinforce Componenta's position as a global supplier of pistons.

Share of net sales	Share of energy consumption
23%	2%
Share of waste
2%

Aluminium division

e division comprises ofthe Group's aluminium foundry and production unit of aluminium wheels in Turkey.

Aluminium Division

Production units	Componenta Manisa (aluminium foundry) Turkey Componenta Wheels (production unitfor aluminium wheels)
Order book	Atthe turn ofthe year,the order book forthe Aluminium Division stood at EUR 12.8 million (EUR 12.1 million), 6% higherthan atthe same time in the previous year.e order book comprises orders from the automotive and heavy trucks industries.
Net sales	Net sales forthe Aluminium Division declined slightly from the previous yearto EUR 72.8 (73.4) million.e division's operating profit excluding one-time items was EUR 9.7 million (EUR 9.2 million).e operating profitimproved thanks to greater volumes and the weakening ofthe Turkish lira.
Number of personnel	In 2013,the number of personnel on average in the Aluminium Division, including leased personnel, was 744 (712).
Management	e SeniorVice President ofthe Aluminium Division is Sabri Özdogan

e key measures taken in the Aluminium Division in 2013 were related to implementing new and coherent ways of working, improving production efficiency and strengthening engineering and product developmentin aluminium components.e audits performed by Europe's leading manufacturers of cars and heavy trucks – and the

successful outcomes ofthe audits – reinforced Componenta's position as a supplier of demanding aluminium castings.During the year,many new products designed in cooperation with our customers wentinto production.

Business developmentin 2013

Several projects to increase productivity, improve quality and cut costs were planned, initiated and implemented during the year.

Componenta supplies demanding cast components with complete supply chain services both locally and globally to manufacturers of vehicles,machines and equipment. Componenta's foundries specialise in manufacturing components of different weight and production series of varying length. In the manufacture of components,the extensive product portfolio enables selecting the best alternative in terms oftechnical properties and costefficiency.

In addition to casting, services which coverthe complete supply chain form an important part of our business, as they help us create solutions that provide added value for our customers.1ese include co-engineering with our customers, product development,machining, surface treatment, pre-assembly and logistics services.

Componenta is able to meetthe needs of both large, global customers and smaller customers by providing them with casting solutions and cast components which support their business operations as well as high-quality service.

1e most significant measures taken in all production units in 2013 were related to the efficiency programme launched in October 2012 and its expansion in October 2013. In this context,the units planned, initiated and implemented several projects in orderto increase productivity, improve quality and cut costs.

1e efficiency programme, aimed at cost savings of EUR 25 million by the end of 2014, involves the following projects:

Productivity and quality improvement project atthe Orhangazi foundry in Turkey
Profitability and productivity improvement projectin the Netherlands
A project aimed atincreasing capacity utilisation rates atthe foundries in Finland
A project aimed atincreasing cost-efficiency and productivity atthe Främmestad machine shop in Sweden
Improvement of efficiency and reduction of fixed costs in the administration, sales and engineering organization

In September 2013,the efficiency programme was expanded with new development projects focusing primarily on increasing foundry utilisation rates, developing processes and improving profitability in Turkey, the Netherlands, Finland and Sweden.1e objective is to achieve cost savings of EUR 10 million by 2015.

Measures aimed at achieving the Group's strategic targets were continued in 2013.

We have many ways of maintaining customer satisfaction and continuous improvement at different stages of our cooperation with customers.1e operational model of Componenta's Finnish customer service centre was also adopted byWeertin the Netherlands towards the end of the year.Centralised customer service improves the sales support services provided to customers, while also increasing the efficiency and fluency ofinternal operations.Our customers also appreciate the casting solutions provided by Componenta and our ability to integrate casting,machining and other supply chain services, which could be seen in the results ofthe Customer Satisfaction Survey carried outin the autumn 2013.

In 2013,Componenta was involved in designing and implementing several new component solutions for various customers in differentindustrial sectors. Many of the projects involved the new SSF iron material, which has excellent strength and durability properties and machinability.

We developed the quality of our products and operations in all Componenta countries by using Lean Six Sigma tools underthe guidance oftrained Master Black Belt and Black Belt experts.

1e deployment ofthe Group-wide ERP system SAP, which reinforces ourOne Componenta ways of working, was completed in Turkey in the spring of 2013. In the autumn, preparations forthe deployment ofthe system were initiated atthe Främmestad machine shop in Sweden.

1e Group's best practices were utilised particularly in the development projects aimed at quality and cost-efficiency improvements within the Group-wide efficiency programme, and in planning new investments.

Sustainability at Componenta

Sustainability is an integral part of all Componenta operations. We maintain and develop our economic, social and environmentalresponsibility by looking after our profitability, people and the environment.

In 2013, sustainability was particularly apparentin measures aimed at

improving profitability in all Componenta countries and units
strengthening the company's balance sheet and financial position
developing the organization's operations and common One Componenta ways of working
boosting production and taking measures in orderto improve the indoor and outdoor environment and working conditions
deciding on significantinvestments to reduce the environmental load.

In our operations, we take into accountthe ISO26000 guidelines with regard to socialresponsibility.We comply with laws and regulations and our common,Group-wide operating principles and policies (including the Componenta Way to Operate and the Code of Conduct) in daily management, operations and cooperation with all stakeholders.Our operations are based on Componenta's common values.

All Componenta production units have third-party certified quality and environmental management systems. Furthermore,four of our units employ an occupational health and safety management system certified underthe OHSAS18001 standard, and the establishment ofthe system is in progress or beginning in our other units as well.

Profitability ensures the continuity of operations

Economic responsibility at Componenta is accountability forthe Group's profitability and competitiveness and increasing shareholder value, and we will achieve all of

these by operating competitively and developing our operations overthe long term.Comprehensive risk management allows us to identify and prepare forrisks that may impact our business.

Looking after people

Socialresponsibility at Componenta includes good leadership and consideration of people.We develop our personnel's competence and occupational wellbeing and safety.We do not condone any form of bribery or discrimination under any circumstances. In 2013,no incidents of discrimination were reported within the Group.

We also pay special attention to environmental and safety requirements, socialresponsibility and ethics in matters pertaining to our suppliers and the procurement ofraw materials.We do not pay bribes or make any otherillegal payments.No cases of corruption emerged in the Group in 2013.

Environmental impact of a component during its life cycle

At Componenta, environmentalresponsibility means minimising the environmental impact of cast components during theirlife cycle, starting with the manufacture of each component.Componenta is a significantrecycler and reuser of waste. Most ofthe raw material used for cast components is recycled material.8e recycling percentage of waste generated from the production process was 63% in 2013.We also reuse the heat energy created in melting; for example, in heating buildings.

8e high quality of our products and operations also means minimising the environmental impact of our production and operating cost-efficiently.8e betterthe quality,the lowerthe number ofrejects in production and the smallerthe consumption ofraw material and energy.

By co-designing products with our customers and choosing the right materials, we are able to develop more environmentally friendly products that also reduce the environmental impact of end use. Forinstance, lighter components in cars reduce fuel consumption and emissions into the environment.

Sustainability targets and measures in 2013

Responsible business	Targets	Measures taken in 2013
Ensuring competitiveness and profitability and increasing shareholder value	Reducing the Group's debt-equity ٠ ratio and strengthening the balance sheet and financial position Improving profitability and ٠ competitiveness	Share issue, hybrid bond and two notes Continuing and expanding the efficiency programme in order to improve profitability Developing function-specific
Good leadership, consideration of people and the development of competence, wellbeing and safety	Developing the personnel's compe- ۰ tence and increasing occupational wellbeing Implementing and developing ۰ coherent operational models and practices to support efficient busi- ness operations and management Ensuring that the operators in the ۰ supply chain adhere to the required principles of quality and responsibility	structures and the organization Securing adequate resources in order to implement the efficiency programmes Improving the working environment and working conditions as part of the efficiency improvement projects Developing engineering and product ä, development operations Audits of raw material suppliers with the focus on quality, environmental issues and occupational safety
Reducing the environmental impact of a cast component during its life cycle	Improving energy efficiency in production Minimising the production waste ۰ dumped at landfill sites Developing environmentally ۰ friendly and high-quality products in cooperation with customers	Increasing energy efficiency in the units Reducing the environmental impact of production as part of quality and process development Reviews aimed at increasing oppor- tunities for the reuse of production waste Product design projects where the optimisation of component material and structure has also reduced their

Significance ofresponsibility at Componenta

Responsibility means taking continuous, concrete measures that observe both people and the environment.
Itis a part of our business and our cooperation with stakeholders.
Responsibility is also a part of our competitiveness and contributes to our success as we compete for customers, employees and investors.

Personnel by country

Environmental costs, MEUR

Environmental impact of production

Eco-friendly is also economically friendly.

Environmentally friendly solutions are often cost-efficient as well.We can reduce the environmental impact of our production through good quality management.By using smooth processes, producing good quality and doing things rightthe firsttime, we can save energy and materials and reduce working hours in production.As a result, we will operate more efficiently atreduced costs.

Componenta's policy for quality,the environment,health and safety also guides our measures related to quality and environmental aspects.All ofthe Group's production units have a third-party certified quality and environmental management system.

0e production of components requires plenty of energy, and the casting process also generates significant amounts of waste. Energy consumption, waste prevention and the reuse of waste instead of dumping it atlandfill sites have been identified as key environmental aspects at Componenta.

Our primary means ofimproving material efficiency in production is component engineering. In 2013, we continued to reinforce our engineering functions and develop the competence of our engineering personnel, which has been one of our key development areas within the Group during the pastfew years.

In the context ofthe Group-wide production efficiency programme launched in October 2012, we implemented and prepared several projects in 2013 with the aim of improving efficiency and quality by using the company's best practices.By means of differentindicators, we are actively monitoring the environmental impact of our production, such as the amount of waste and emissions, which can be reduced significantly with our new efficient and smooth production processes.

Environmental complaints at Componenta in 2013 were mainly related to the smell issue ofthe Heerlen foundry.

During the year 2013 we had some dangerous situations when the fire brigade was alarmed.0ey did not cause any personal injuries and their material damages were minor.

Investments to reduce environmental impact

In 2014, we will make investments in the Heerlen foundry in the Netherlands and the Orhangazi foundry in Turkey in orderto reduce the environmental impact of both production units significantly.

0e odour emissions ofthe Heerlen foundry will be reduced by switching to a new afterburner, differentraw material and higher chimneys.0e state ofthe Netherlands,the province of Limburg and the municipality of Heerlen will participate in the costs of Componenta's environmental investment of EUR 6 million, which will be implemented in the summer of 2014 in orderto reduce odour emissions into the neighbourhood.

0e sand system ofthe Orhangazi foundry will be renewed by the end of summer 2014.0e change in the process will improve both the efficiency of material consumption and the casting process, while also reducing the amount of waste generated.As a result,the need to fettle castings willreduce and the quality of components will improve.

Environmental cost breakdown Total energy consumption, GWh

Responsible sourcing and raw materials

High-quality castings are made from pure raw materials

Componenta has established strictrequirements forraw materials, and their achievementis monitored in the quality control processes of suppliers and in Componenta's own receiving inspections.We expect our suppliers to adhere to the same standards that we adhere to in our operations in terms of quality,the environment and ways of working. ISOcertification is a minimum target for our suppliers.

For example,recycled steel used as the primary raw material atiron foundries may not contain any impurities or hazardous substances, such as lead.

Alloying elements for castings added in the melting phase are not environmentally hazardous. Every batch of molten raw material is analysed before the liquid moves on to the next phase ofthe process and is castinto a component. 4is analysis includes, among otherthings,measuring lead to an accuracy ofthree decimal places.Quality control atthe foundries is conducted by using analysers and measuring equipment,the performance of which is tested on a regular basis.

In 2013,Componenta purchased raw material worth EUR 204 million.4e biggest supply country was Turkey.

Case / Pori foundry discontinued the use of carcinogenic insulation wools

Foundries use high-temperature insulation wools forfurnace insulation in smelting plants. Some ofthese insulation wools contain ceramic fibres that are carcinogenic.As a result,these wools were included in the REACHCandidate List, and in the summer of 2013 it was proposed thatthey be included in the list of substances subjectto authorisation.

After a trial period in late 2013,the Pori foundry switched exclusively to insulation wool thatis not classified as hazardous.Priorto this decision, alternative materials were assessed, experiences regarding the use ofinsulation wools were discussed and best practices were compared between our Finnish foundries.

Componenta's foundry in Pietarsaari had already switched to insulation wools that are not hazardous, and this was included in the improvement programmes ofthe other Finnish foundries as well. Suomivalimo is likely to discontinue the use of carcinogenic insulation wool in early 2014. In addition,the Högfors foundry has replaced most ofthe hazardous wool with a non-hazardous alternative.4e objective is to replace all the remaining carcinogenic insulation wools with non-hazardous ones before their use becomes subjectto authorisation.

Ingots and liquid aluminium used in melting, %

Recycled steel and pig iron used in melting, %

Product development

e environmental impacts of a product, during its production and use, can be reduced by product development and engineering.

Componenta's supply chain begins with component design and engineering, when the environmental aspects and impacts of a product can be taken into account. Engineering can,for example,help reduce the weight of a product orthe need for finishing processes,resulting in less raw materials and energy being used in manufacturing.e engineering process also presents opportunities to influence work stages and processes with the aim ofimproving quality and manufacturing efficiency, saving costs and reducing the environmental impacts of the manufacturing phase.

Already in 2012,Componenta introduced a new standardised grade ofiron in production.e new SSF iron grade, which belongs to nodular castirons and has a high silicon content, is the most significant step forward during the 60-year history of nodular castirons. Its strength and durability properties and machinability are superiorto previous solutions.

e customer achieves cost savings, as the new material enables replacing expensive welded and cast steel structures with cheaper ones made from castiron. In addition,the properties ofthe material the manufacture of lighter and thinner-walled components that still endure intense stress.

e end user also benefits from the new material. Its improved properties permitincreasing machine loads, meaning that heaviertasks can be performed with lighter machinery.

In 2013,Componenta was involved in designing and implementing several new component solutions for various customers in differentindustrial sectors.Below is a short description of one ofthe projects.

Case / New component for a forestry machine

Componenta participated in a product design project of one of its customers – a manufacturer offorestry machines – from the creation ofthe very first concepts.e design was carried outin cooperation, and Componenta advised the customerin orderto optimise the productfor casting and to take advantage of all the properties ofthe new material.

e projectlasted for five months, during which time almost ten different product versions were made and around 40 simulations were run.e product was co-designed with the customer and, atthe same time,the manufacturing method was developed in orderto ensure thatthe tools required in the manufacturing process would be ready by the time the design ofthe component was finished.is also ensured that no further changes would have to be made to the product after placing the order.

e product changed significantly during the design process. Unlike with the original concept,the final product combined the functions of several different welded parts,maximising the benefits ofthe casting.

Both parties were pleased with the end result.e first castings were delivered to the customer on schedule by doing things rightthe firsttime.

New SSF material brings significant benefits to production and use of components. "
Our engineering services help our customers to develop more environmental friendly products. "

Energy efficiency

Various measures are taken continuously to increase efficiency of energy consumption.

As a whole,Componenta uses a great deal of energy, as energy is required in the casting process for melting the raw material and holding its temperature.Componenta is continuously taking measures to increase the efficiency of energy consumption;for example, by means of casting planning and limiting the use of holding furnaces. Energy efficiency is also influenced by production volumes and the evenness ofthe load.

In 2013, ourtotal energy consumption was 671 GWh. 67% of the energy used was electricity.5e foundries consume about 90% of all the energy. In proportion to the production volumes, energy consumption atthe iron foundries rose 2% which was due to the lower capacity utilization rate.

In 2013, a significant energy saving project was initiated at the Orhangazi foundry in Turkey. It aims to increase efficiency in both melting and using molten material atthe smelting plant by changing the process and ways of working,thus achieving significant savings in the use of

electric energy. Most ofthe measures will be implemented in 2014. In Finland,the transfer of production from Pietarsaari to the Pori foundry will contribute to reducing the Group's energy consumption, both in terms of electricity and heating. Furthermore,the various units of the Group are taking several other measures to bring down their energy consumption.

Componenta is committed to national targets forreducing energy consumption in Finland and the Netherlands. In Finland,Componenta is participating in a scheme for energy efficiency agreements for differentindustrial sectors.5e agreements extend to 2016 and include a commitmentto both energy savings and improved energy efficiency. In the Netherlands, we are participating in the "Roadmap to 2030" target programme involving other Dutch foundries and the Dutch metallurgical industry.5e aim is to achieve a 50 per centreduction in energy consumption by 2030 in comparison with the 2005 levels.

Distribution of energy consumption Energy comsumption by production plant

36 This PDF has been generated from Componenta's OnlineAnnualReport 2013 and only contains the parts specified and downloaded by the user.Please visit www.componentareports.com/2013/en forthe full online report.

Reducing emissions

Most ofthe production-related emissions are generated atthe foundries. In 2013 it was decided to carry outinvestments to reduce emissions in the Group's foundries in Turkey and Netherlands.

Most of Componenta's production-related emissions are dust and VOC (volatile organic compounds) emissions generated atthe foundries..ere are also some odour emissions. Machining and forging do not cause significant emissions.

Dustis given offin different parts ofthe casting process. Inside the foundries, dustis controlled by using extraction points, and filtering equipment prevents the dustfrom escaping into the air outside.

VOC emissions are given offby the amines and solvents used atthe foundries. Emissions given offby solvents have been reduced by switching to water-based paints and coatings.Amine gases have been reduced by means of acid scrubbers. Measures have been taken in orderto reduce smell;forinstance, certain substances used in production have been replaced with others.

In 2013, an investmentreducing emissions was made at the Orhangazi foundry in Turkey, where new filtering equipment was installed atthe smelting plant and,

as a result, dust and smoke emissions in both the indoor and outdoor environment were eliminated. In September 2013,Componenta decided to make an investmentthat willreduce emissions substantially atthe Heerlen foundry in the Netherlands.Higher chimneys will be builtin the summer of 2014, significantly reducing odour emissions in the environment.

Carbon footprint

Although combustion gives rise to direct carbon dioxide emissions,they are not very significant compared to other environmental aspects of production.

.e Group seeks to reduce its carbon footprint by optimising transport, among otherthings. Travel-related emissions have reduced significantly, as internal joint meetings are nowadays held by using the video conferencing equipment available at all Componenta locations.

Case / Air emissions reduced at the foundry by increasing filter

In orderto reduce the air emissions generated in the foundry processes,the Orhangazi foundry has increased its exhaust air filter capacity..e project was initiated in 2012 and continued in 2013..e impact ofthis significant environmental investment on air emissions will be established in detail once the entire investmentis completed and the emission sites are measured.

Particle emissions in foundries, kg / cast t

Amines and solvents, (VOC emissions), kg / cast t

Reuse of waste

In 2013 a total of 63 per cent ofthe waste generated at Componenta was reused. We also continued our search for new reuse applications.

In proportion to the products manufactured,Componenta's production generates great amounts of waste. Foundries using disposable moulds – including all Componenta iron foundries – may generate even more waste than actual castings, and therefore the reuse and prevention of waste is important.

In orderto reduce the amount of waste sand, in 2013 Componenta's largestfoundry– Orhangazi, Turkey– launched a project aimed at, among otherthings, substantially increasing the reuse of circulating sand by boosting sand reclamation.1e project will be completed in 2014.

Sorted production waste is reused in accordance with the legislation of each country.Before reuse, all waste materials are examined and their composition is ensured by using laboratory tests.A total of 63 per cent ofthe waste generated at Componenta in 2013 was reused.

In 2013, we continued our active search for new reuse applications in cooperation with the concrete and cement industry, among otherthings.1e amount of waste is also being reduced by means ofinternalrecycling. Forinstance, the runners and burrs removed after casting as well as the metal chips generated in machining are remelted atthe foundries.

Most ofthe water used at Componenta, some 95 per cent, is utilised in cooling and sand production atthe foundries. Some foundries take their cooling waterfrom nearby water sources, and a few of our production units have their own waste watertreatment plants.As water circulates in the production system, smaller quantities need to be sent to external waste watertreatment plants.1e Manisa aluminium foundry generates approximately 78 per cent of the Group's waste water.

Case / Reduction of core waste at the foundry

Case / Hazardous salt waste reduced to one-tenth of previous levels

Heattreatment, i.e.hardening a componentin molten salt (200–300 ºC), increases the hardness and durability ofthe structure.Afterthe salt bath,the components are washed.1is makes some ofthe salt dissolve in the washing water, which is then forwarded to an external operatorfor hazardous waste treatment.

In 2013,the Högfors foundry introduced evaporation equipment for washing water. It enables the recovery of saltfrom washing water and reusing most ofit. It also increases safety:the recovered saltis in the form of flakes and does not splash like new granular salt when added to the salt bath.1e achieved benefits include the reduction of hazardous waste,material savings and improved occupational safety.

Case / Our search for new reuse applications for foundry sand

Componenta's Finnish units generate a total of 25,000 tonnes of excess foundry sand annually.According to the law, foundry sand can be reused at a landfill site, ifthis is mentioned in the environmental permitforthe site, or at an earth construction site, if a separate environmental permitis applied for.Otherwise,foundry sand has to be dumped at a landfill site.

In 2013, only a few per cent of excess foundry sand was reused outside oflandfill sites.However,reuse applications could be increased due to the excellent composition offoundry sand:mostfoundry sand types contain around 10 per cent of bentonite, which is added to mixtures used in earth construction, among otherthings. In addition,the concentrations of harmful ingredients in foundry sand are either below or very close to the limits ofinert waste. Expanding reuse applications would also bring significant environmental benefits.

Atthe moment,the environmental permit process required forfoundry sand is in effect preventing its flexible reuse. 1erefore, we have initiated a projectin Finland that produces information forthe authorities on the environmental impact and reuse opportunities offoundry sand.1e project aims to change the currentlegislation (Government Decree Concerning the Recovery of Certain Wastes in Earth Construction) so thatfoundry sand could be reused in different projects with a less burdensome notification procedure than in the environmental permit process. In the context ofthe project, we are participating in a Finnish programme called UUMA2, which examines the reuse of waste, and an EULIFE funded project atthe Hitura nickel mine in Finland.

Waste,1,000 t

Responsible employer

Responsibility includes good leadership, consideration of people, and development of competences, wellbeing and safety.

At Componenta, socialresponsibility means looking after our personnel and the wellbeing, working conditions, occupational safety and competence development ofthe people working in our various supply chains.

Responsibility is based on Componenta's personnel policy, management principles and values – Openness,Honesty and Respect.We respect our employees'rights, and international agreements on human rights and equality are integrated into Componenta's operating culture.

We mapped our personnel's job satisfaction and working atmosphere regularly, and in 2013 a Pulse survey was carried outin the Componenta business unitin each country Componenta has operations./e results were examined togetherin each function, and necessary improvement measures were agreed.

Key figures

	2013	2012	2011	2010	2009
Total number of own and leased personnel	4,398	4,642	4,717	4,155	3,797
Total number of own and leased personnel on duty, FTE	3,617	3,855	4,003	3,224	2,424
Change during the year,%	-5	-2	14	9	-27
Absenteeism due to sickness and accidents,%	4.9	4.0	3.9	3.8	4.5
Recruitments	388	546	746	654	335
Turnover,%	15	18	17	10	26
Type of employment,%
Permanent	86	82	73	81	93
Temporary	8	9	16	9	5
Leased	6	9	10	9	2

*) Includes all days of absence from first to last.

Personnel age structure Gender distribution of personnel& management, %

Efficiency program 2013

In addition to developing productivity, efficiency and quality, the efficiency improvement measures also reinforced information exchange, teamwork and knowledge sharing.

Componenta continued to improve its competitiveness in 2013 by carrying out efficiency improvement measures focusing on the development of productivity, efficiency and quality in the business units.-e adaptation measures related to increasing efficiency, such as lay-offs and inevitable headcountreductions, were carried outin close cooperation with the personnel and agreed on in a good, constructive spirit.

-e improvement of efficiency also improved transparency in all operations. Forinstance, sharing best practices between operations increased,reinforcing the implementation of coherent ways of working, both in production and in the supportfunctions.As part ofthe efficiency programme, organizationalreforms were carried outin the business units with the aim of making their organizational structures lower and improving supervisory work and information flow.-e changes were supported in the units by providing supervisors with practical coaching to reinforce their competence in daily management and change implementation.

-e efficiency improvement measures, such as transferring the manufacture of certain products from one country to another,underlined the importance of international teamwork and knowledge sharing.-e exchange ofinformation was facilitated by, among other things, establishing new meeting practices forlocal and

international managementteams and otherteams and by developing project work.-e exchange ofinternational knowledge and experience was supported through shortand medium-term expatriate assignments for key personnel.

Coherent tools

We continued to strengthen our common management practices and One Componenta operating principle by introducing new tools that support coherent processes and ways of working.One example is our new Group-wide HR Information System (HRIS).

In the context ofrenewing the system, all keyHR processes were revised and developed as part ofthe strategic annual planning and general management processes.-e new system and improved processes help supervisors in daily management and high-quality supervisory work. Furthermore,the management and implementation of HR processes have been simplified.-e new HR system also provides employees with access to their up-to-date personal details

In addition to the HR system, efficiency and transparency are increased by the ERP system SAP, which already covers most of Componenta's operations and production units.

Personnel by function

Competence development

In 2013, in addition to the efficiency improvement program, the development programs and measures continued to ensure sufficient and competent resources forthe future.

In 2013, a Group-wide resource and potentialreview was carried outin orderto ensure that Componenta has access to allresources which are essential for business.,e review created a transparent overview ofthe successor and substitute situation as well as a comprehensive understanding ofthe existing resources and need for new resources with regard to the implementation ofthe strategy. In addition,the review was used to establish clear development measures in terms of competence development and resourcing.

Componenta's two-yearInternational Trainee Program aims to ensure competent and strategically important future resources, increase students' awareness of Componenta and the entire industry, share knowledge and competence by offering trainees the opportunity to getto know Componenta's different units and functions and, finally,to strengthen cooperation between Componenta and educational institutes.

During the review period the third International Trainee Program continued with a mobility period during which the trainees learned more about ways of working in a foreign country, supported by their mentors. Each trainee wrote a projectthesis on a topic related to Componenta;for example, on process implementation or business development. In 2012–2013, a total of18 trainees participated in the International Trainee Program, and afterwards most ofthem were recruited by Componenta in functions such as financial management, engineering, sales and production.

In 2013,Componenta deployed a 360 assessmenttool based on the company's leadership competencies.,e first 360 assessments were conducted on the Group's key personnel.

During the review period,the company began establishing a competence management scheme, which included clarifying competence requirements for differenttasks and roles. In addition,targets were setfor all white-collar employees, and their achievementis monitored through the HR Information System.

,e development ofthe engineering function continued by, among otherthings,updating employees'roles, job descriptions and competence requirements and the way to operate.All engineers have an individual career and development plan based on the defined roles and competence requirements.,e further development of engineering competence and resources is one of Componenta's mostimportant strategic targets.

,e personnel's general competence was developed by, among otherthings, organising training in matters such as occupational safety, quality, environmental issues and various information systems.,e employees were also offered language training in orderto develop their language skills.

Engineering service development continues in Orhangazi

Componenta's targetis to provide world-class engineering services to fulfil customer needs, while also ensuring the best possible solutions from the perspectives of delivery certainty, quality and cost.

,e Orhangazi Engineering Centerin Turkey plays an active role in sales and production through several product development processes, such as requests for quotation,new productintroduction and requests for modification. In addition,the know-how of engineers is needed in internal producttransfers carried out between Componenta's units for optimised production.

In 2011, development actions began atthe Orhangazi Engineering Centerin orderto increase engineering resources and capabilities, clarify engineering roles and develop project management skills.

In 2013,the main focus ofthe project was to define the needs for engineering related to sales and production in orderto safeguard the ownership and coordination of cross-functional processes. In addition, several necessary human resource management processes and tools were implemented, paying special attention to future engineering needs. In addition to recruiting new engineers,the existing organization was renewed in orderto meet engineering targets.

Education

Safety and wellbeing

We investin comprehensive occupational health services in allthe countries in which we operate, with the aim of preventing the deterioration of our employees' work ability.

Componenta aims to develop and improve occupational safety continuously.+e OHSAS18001 standard on occupational health and safety was implemented in 2013 atthe Högfors foundry in Karkkila, Finland.+e standard integrates occupational health and safety issues with everyday operations and management. It also helps prevent accidents and illnesses and safeguard the wellbeing ofthe personnel.

Componenta invests in comprehensive occupational health services in all the countries in which we operate, with the aim of preventing the deterioration of our employees' work ability.Componenta aims at a significant reduction in absence due to illness through centralised monitoring and preventive measures.

Forinstance, during the review period all Componenta countries organised different sporting events forthe personnel.Periods of sick leave are monitored systematically at all units atthe managementteam level.

Unfortunately,two fatal occupational accidents occurred during the review period: one atthe Suomivalimo foundry in Iisalmi, Finland, and the other atthe Orhangazi foundry in Turkey.Alongside the accidentinvestigations ofthe authorities,Componenta conducted thorough investigations into the reasons behind the accidents and took the necessary measures to prevent similar accidents from occurring in the future.

Employment years

Stakeholder engagement

Collaboration and dialogue with the stakeholders is part of Componenta's sustainable business, as our operations have an extensive impact on our stakeholders.

The competent and committed personnel ensure the fluency of everyday business,the long-term development and the achievement ofthe company's strategic goals.-e development of Componenta's image as an employeris considered important,not only forincreasing the level of commitment among existing employees but also for attracting new employees. In all the countries in which we operate,Componenta participates in studentfairs and engages in active cooperation with selected student organizations by supporting their activities and organising visits, among otherthings.

In 2013,Componenta paid specific attention to supporting the company's employerimage and resourcing, particularly in engineering and product development.-e measures included, among otherthings, activities related to educational institutes and professor networks in different countries.Componenta's engineering and product development experts held lectures at various educational institutes and continued their close cooperation with professors specialising in the industry.

Case / School cooperation in several forms

Componenta's school cooperation takes several forms and they are based on an annual plan which covers all Componenta countries.Cooperation forms are e.g.foundry and machine shop visits,fairs, discussions with the professors of selected universities and sciences, summerjobs as well as trainee and final thesis opportunities.

For example in the Netherlands,Componenta's engineering professionals are regularly invited to give lectures forthe students participating in technical studies in Eindhoven University and Heerlen University.-e given lectures have covered e.g. Six Sigma and engineering processes topics.

We act openly with our stakeholders, working together. Profitable operations allow us to create value for our stakeholders. " We continuously develop ourimage as
an employer and actively cooperate with educational institutes "

Stakeholder value

At Componenta, economic responsibility means safeguarding the Group's competitiveness and profitability, which also benefits our stakeholders.

Competitive and profitable business operations, adequate resources and good management of finances create a solid foundation for other areas ofresponsibility and sustainable development, while also safeguarding the conditions for business now and in the future.

Profitable operations allow us to create added value for our stakeholders.Componenta's key stakeholders include customers, personnel, owners and investors. In addition, our other stakeholders include financial institutions, material suppliers and subcontractors as well as society, authorities and the neighbours of our production units.

We act openly with our stakeholders, working together and meeting their expectations.We engage in an ongoing dialogue with our stakeholders and take theirfeedback into accountin our operations and development activities.

0e customerfeedback in 2013 indicated thatthey appreciate Componenta's capabilities and ability to offer competitive casting solutions. In 2014, we continue our development measures to boost engineering services, quality and delivery certainty and ensure customer satisfaction.

Componenta participates in many collaboration bodies and projects within its field in its countries of operation. We are also constantly participating in different developing projects together with other companies, universities and research institutes.

Added value to stakeholders

Our key stakeholders

Customers
Personnel
Owners and investors

Improving Profitability

During the year several measures to improve profitability were carried out with good results.

The Group's balance sheet and financial position were strengthened by carrying out various capital market operations in August 2013.A share issue,hybrid bond and two notes raised a total of EUR 77.3 million..e raised capital was used forrefinancing and repaying the 2010 note thatfell due on 29 September 2013,repaying other interest-bearing debts and forthe company's general financing needs.

In 2013, we continued to implement measures related to our Group-wide efficiency improvement programme in all Componenta countries and units..e efficiency programme, initiated in October 2012, comprises five subprogrammes aimed atincreasing profitability and productivity and achieving cost savings of EUR 25 million in 2013 and 2014.

.e efficiency improvement programme proceeded well, in accordance with the settargets. In September 2013, it was expanded with new development projects targeted at a profitability improvement of EUR 10 million by increasing foundry utilisation rates and developing production processes.

Progress of the efficiency improvement programme in 2013

.e measures and development projects ofthe efficiency improvement programme carried outin our business units and countries of operations during 2013 are shown in the table below.

Country and unit	Measures carried out in 2013	Total savings, target 25MEUR + 10MEUR
TURKEY Orhangazi foundry	The efficiency programme, aimed at increasing productivity and quality, proceeded according to plan and utilising the Group's best practices. The overall productivity of the foundry developed positively. Layout changes in production, product improvements and other measures to improve efficiency Simulation capacity increased in engineering Process improvements in the casting sand system and the smelting plant Efficiency of raw material use increased in production	EUR 9 million by the end of 2014
NETHERLANDS All units	Productivity improved at all production lines. The efficiency programme, aimed at profitability improvements, was expanded. Restructuring of production units, including the reduction of 55 jobs Further development of capacity utilisation rate and productivity Increasing the efficiency of new sales Centralisation of customer service and engineering functions At the Heerlen foundry, preparations for the chimney investment reducing odour emissions in the environment	EUR 5 million by the end of 2014	Total of EUR 10 million in 2015
SWEDEN, TURKEY Främmestad machine shop Orhangazi machine shop	In order to improve profitability, the machining of major series was centralised in the Orhangazi machine shop. Orhangazi machine shop extension Product transfers from Främmesftad to Orhangazi Development projects aimed at increasing cost-efficiency and productivity at both machine shops	EUR 3 million by the end of 2014
FINLAND Pietarsaari foundry, other Finnish foundries	Restructuring in order to improve the profitability of the Finnish foundries. Transfer of the production line of the Pietarsaari foundry to the Pori foundry and the closure of the foundry in October 2014. Transfer of the Disa production line to the Pori foundry Product transfers to the Orhangazi foundry in Turkey and the Pori foundry in Finland Improvement of utilisation rate and reduction of fixed costs at all Finnish foundries	EUR 3 million by the end of 2014
GROUP Administration, sales and engineering	Improvement of profitability and operational efficiency and the reduction of fixed costs.	EUR 3 million in 2013
SWEDEN Wirsbo forges	Wind-down of the Smedjebacken forge and the transfer of products to Arvika in order to improve productivity Reduction of 41 jobs in the forge business Productivity development projects	EUR 2 million in 2013

.e group-wide efficiency improvement programme made progress in 2013 according to plan. "

54 This PDF has been generated from Componenta's OnlineAnnualReport 2013 and only contains the parts specified and downloaded by the user.Please visit www.componentareports.com/2013/en forthe full online report.

Responsible management

e Componenta Way to Operate and the Code of Conduct, guarantee consistent internal processes and practices regardless ofthe location and country ofthe unit orfunction.

Componenta is a multinational casting solution provider. In our business operations, we comply with all current laws and regulations and generally accepted business practices in all the countries in which we operate.Our Group-wide One Componenta operating principles and policies,the Componenta Way to Operate and the Code of Conduct, guarantee consistentinternal processes and practices regardless ofthe location and country ofthe unit orfunction.

International agreements on human rights and equality are integrated into Componenta's operating culture, and we comply with local labourlaws everywhere, in every situation.

Componenta's values of Openness,Honesty and Respect are a strong foundation forthe Group's daily operations and cooperation with stakeholders.Openness means that we are open to new ideas and to change and that we are willing to develop.rough this, we seek to continually

International agreements on human rights and equality are the premise for our operating culture. "

improve our ways of working.Honesty is about being honest with ourselves and with each other: we do what we promise.Respect means that our cooperation with all stakeholders is based on trust and mutualrespect.

e administration and management of Componenta Corporation are based on Finnish legislation,the company's Articles ofAssociation and the rules, regulations and guidelines ofthe Helsinki stock exchange and the Finnish Financial SupervisoryAuthority. Componenta complies with the Corporate Governance Code for Finnish listed companies.

Risk managementis part ofthe company's monitoring system which ensures thatthe risks to which our business is exposed are identified, evaluated and monitored.is allows us to anticipate threats to and opportunities for business operations and ensure business continuity.

GRI contentindex table

GRI Standard Disclosure Items	Reporting	Location in the Annual Report	Comments
STANDARD DISCLOSURE
1. STRATEGY AND ANALYSIS
1.1 CEO Statement	Disclosed	President's review
1.2 Description of key impacts,risks, and opportunities	Disclosed	Sustainability www.componenta.com
2. ORGANIZATIONAL PROFILE
2.1-2.10Organizational Profile	Disclosed	Key figures Business Business segments Corporate Governance
3. REPORTPARAMETRES
3.1-3.11; 3.13Report Profile and Reporting Principles	Disclosed	Reporting principles
3.12 GRI Content Index	Disclosed	GRI contentindex table
4. GOVERNANCE, COMMITMENTS& ENGAGEMENT
Governance
4.1-4.10 Governance	Disclosed	Corporate Governance
Commitments to External Initiatives
4.11 Precautionary approach	Disclosed	Risk management and control
4.12 External charters	Disclosed		Componenta is committed to national targets forreducing energy consumption in Finland and the Netherland
4.13 Memberships in associations	Disclosed	www.componenta.com
Stakeholder Engagement
4.14-4.17 Stakeholder Engagement	Disclosed	Stakeholder value www.componenta.com
MANAGEMENTAPPROACHAND PERFORMANCE INDICATORS
1. ECONOMIC RESPONSIBILITY

Management Approach, Economic responsibility	Disclosed	Sustainability
Economic performance
EC1 Economic value generated and distributed	Disclosed	Stakeholder value
EC3 Coverage of defined benefit plan obligations	Disclosed	Notes to the Consolidated Financial Statements, 26. Pension obligations and other benefit plans
2. ENVIRONMENTAL RESPONSIBILITY
Management Approach, Environmental responsibility	Disclosed	Sustainability Environmental impact
Materials
EN1 Materials used by weight or volume	Disclosed	www.componenta.com
EN2 Recycled input materials	Disclosed	www.componenta.com
Energy
EN3Direct energy consumption by primary energy source	Disclosed	Environmental impact
EN4 Indirect energy consumption by primary source	Disclosed	Environmental impact
Water
EN8 Total water withdrawal by source	Disclosed	www.componenta.com
Emissions, Effluents and Waste
EN20 Significant emissions to air	Disclosed	www.componenta.com
EN21 Total water discharge by quality and destination	Disclosed	www.componenta.com
EN22 Total weight of waste by type and disposal method	Disclosed	Sustainability www.componenta.com
EN23 Total number and volume of significant spills	Disclosed	www.componenta.com
Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services	Disclosed	Sustainability
Compliance
EN28 Non-compliances with environmental laws and regulations	Disclosed	www.componenta.com
Overall
EN30 Total environmental protection expenditures and investments by type	Disclosed	Sustainability Environmental impact
3. SOCIAL RESPONSIBILITY

Labor Practices & Decent Work
Management Approach, Labour practices & Decent work	Disclosed	Sustainability Responsible employer
Employment
LA1 Total workforce by employmenttype, employment contract, and gender	Disclosed	Responsible employer
LA2 Employee turnover by gender	Disclosed	Responsible employer
Occupational Health and Safety
LA7 Injuries and absences	Partially disclosed	Responsible employer	Absenteeism due to sickness and accidents
Training and Education
LA11 Programs for skills management and lifelong learning	Disclosed	www.componenta.com
Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees	Disclosed	Board of Directors Corporate Executive Team Responsible employer
Human Rights
Management Approach,Human rights	Disclosed	www.componenta.com
Investment and Procurement Practices
HR2 Human rights screening of significant suppliers and contractors	Partially disclosed	www.componenta.com	Group's purchasing policy Code of Conduct
Diversity and Equal Opportunity
HR4 Total number ofincidents of discrimination and actions taken	Disclosed	Sustainability
Society
Management Approach, Society	Disclosed	Sustainability
Corruption
SO3Anti-corruption training	Partially disclosed	Sustainability	Code of Conduct
SO4Actions taken in response to incidents of corruption	Disclosed	Sustainability
Productresponsibility
Product and service labelling
PR5 Practices related to customer satisfaction	Disclosed	Business development

Reporting principles

Componenta reports on sustainability as part oftheAnnual Report and following the guidelines of GRI G3.

Componenta is publishing its Annual Reportforthe first time as an online reportfor 2013.(e Annual Report includes information on Componenta's business, strategy and goals as well as the results of operations.(e latter includes sustainability issues, such as the economic, social and environmental impact ofthe company's operations.(e financial statements for 2013, including the report by the Board of Directors and the auditor's report, have been added to the online annualreport as a PDF file.

Componenta reported on the environmental impact ofits operations forthe firsttime in 2003. Since 2006, our sustainability reporting has covered all three areas of responsibility, and this information was published as a separate report until 2010. Since 2011, we have reported on sustainability as part ofthe Annual Report, as responsibility at Componenta is linked directly to the company's strategy and goals, and is part of business operations.

(e G3 guidelines set by the Global Reporting Initiative (GRI) were adhered to in collecting the 2013 sustainability information.(e figures for socialresponsibility coverthe Group's entire personnel. Environmental information is reported forthe Group's production units in Finland, Turkey,the Netherlands and Sweden that have a significant environmental impact.(e figures for economic responsibility were prepared in accordance with the International Financial Reporting Standards (IFRS) and are audited.(e information in the rest ofthe report has not been verified.

Complying with the GRI guidelines ensures the reliability and comparability ofthe information reported.A thirdparty GRI Application Level check conducted by a corporate responsibility specialist Mitopro Oy confirmed Componenta's self-declaration thatthe Annual Report 2013 meets the requirements for GRI's Application Level B.

Ourreport 2013 conforms to the requirements ofthe GRI Application Level B "

Governance

Administration and management of Componenta

The parent company of Componenta Group is Componenta Corporation, a Finnish public company whose share is listed on the Helsinki stock exchange.Componenta's head office is located in Helsinki.

Administration and management of Componenta Corporation are based on Finnish legislation,the company's Articles ofAssociation and the rules and regulations ofthe Helsinki stock exchange and the Finnish Financial SupervisoryAuthority.Componenta complies with the Corporate Governance Code for Finnish listed companies, which is available on the Internet at www.cgfinland.fi.

2e Corporate Governance Statementfor 2013 referred to in recommendation 54 ofthe Finnish Corporate Governance Code for Finnish listed companies is given as separate

report on Componenta's website atthe address www.componenta.com and in this Annual Report.2e content ofthis Corporate Governance section fully corresponds to the separate statement.2e Corporate Governance Statement has been handled atthe meeting ofthe Audit Committee of Componenta Corporation's Board of Directors on 3 February 2014.

Governing bodies of Componenta

Supreme authority at Componenta is exercised by the shareholders atthe General Meeting of Shareholders.

2e company is managed by the Board of Directors and the President and CEO.2e Group's Corporate Executive Team assists and supports the President and CEOin carrying out his duties.

Operationalresponsibility atthe Group level lies with the President and CEO.2e Group's Corporate Executive Team assists the President and CEOin this task.Operational

responsibility atthe division level lies with the SeniorVice President of each division, assisted by a management team.

Reporting structure

COMPONENTA GROUP
Foundry Division	Machine Shop Division	Aluminium Division	*)
Orhangazi (TR) Weert (NL) Heerlen (NL) Högfors (FI) Pori (FI) Pietarsaari (FI) Suomivalimo (FI)	Orhangazi (TR) Främmestad (SE) Pistons (FI)	Manisa (TR) Manisa Wheels (TR)	$\star\star$

Componenta reports on its financial performance and business developmentin accordance with the divisional structure presented above as of1January 2013.

General Meeting

Componenta's supreme decision-making body is the General Meeting.(e Annual General Meeting of Componenta must be held within six months ofthe end of the financial period.(e General Meeting decides on matters that come underits authority as defined in the Finnish Limited Liability Companies Act and the company's Articles ofAssociation, including approval of the financial statements, decisions concerning the use of the profit shown on the balance sheet and the election of the Board members and the auditor.

In 2013,the Annual General Meeting was held on 22 March 2013 in Helsinki.Atthe Annual General Meeting, 45.8% of the company's shares and votes were represented.An Extraordinary General Meeting was held on 16 August 2013.Atthe Extraordinary General Meeting, 42.1% ofthe company's shares and votes were represented.

Board of Directors

The Annual General Meeting elects each year Componenta's Board of Directors, which according to the company's Articles ofAssociation has three to seven members.,e term of office ofthe Board continues until the close ofthe following Annual General Meeting.,e Board elects from its members the Chairman and the Vice Chairman.

,e majority ofthe Board members must be independent ofthe company. In addition, atleasttwo ofthe members belonging to this majority must be independent of major shareholders in the company. Independence is evaluated in accordance with Recommendation 15 ofthe Corporate Governance Code for Finnish listed companies.

,e Board of Directors draws up written Rules of Procedure foritself.,e main tasks and duties ofthe Board of Directors are to:

oversee the management and business operations of Componenta and make major decisions relating to the strategy, capital expenditure, organization, corporate restructuring and financing
appointthe President and CEOand the members of the Group's Corporate Executive Team, and approve the organizational structure and the principles for incentive schemes
ensure thatthe company's accounting, supervision of financial management and risk management have been arranged appropriately
approve the key operating principles and values, and confirm the annual business plans and budgets
make proposals to the General Meetings and convene the meetings.

,e Board meets when itis convened by the Chairman or, in his absence, by the Vice Chairman.,e Board forms a quorum when more than half ofthe members are present, and one ofthem must be the Chairman orVice Chairman. Componenta's General Counsel serves as secretary to the Board meetings.

,e Board of Directors evaluates its own performance annually underthe leadership ofthe Chairman.,e Board also reviews the corporate governance annually and amends it when required.

In 2013,the Annual General Meeting selected the following six members to Componenta's Board of Directors:

Heikki Lehtonen,President and CEOat Componenta Corporation
Marjo Miettinen,Chief Executive Officer at EM Group Oy
Riitta Palomäki,Chief Financial Officer at Uponor Corporation
Matti Ruotsala, Executive Vice President,Power Division at Fortum Corporation
Tommi Salunen, Managing Partner at Aava Advisors Ltd
Harri Suutari, professional board member

Marjo Miettinen,Riitta Palomäki, Matti Ruotsala, Tommi Salunen and Harri Suutari are independent ofthe company and ofthe shareholders.Heikki Lehtonen is President and CEOof Componenta Corporation.He is also a major shareholderthrough companies that he controls.

,e Board of Directors is presented in more detail in the section ,e Board of Directors.

,e Board of Directors met19 times during 2013.,e average attendance rate at Board meetings was 97%. Componenta's General Counsel,Pauliina Rannikko, served as secretary to the Board meetings.

,e Board of Directors evaluated its own performance in December 2013 underthe leadership ofthe Chairman.,e Componenta Corporate Governance document was updated atthe Board meeting held on 21 March 2013.

Componenta's Board of Directors and Board meetings in 2013

Board member		Attendance at Board meetings	Attendance at Audit Committee meetings
Harri Suutari	Chairman ofthe Board of Directors	19/19	-
Lehtonen Heikki		19/19	-
Marjo Miettinen	Member ofthe Audit Committee *)	17/19	1/1
Riitta Palomäki	Chairman ofthe Audit Committee	19/19	5/5
Matti Ruotsala	Vice Chairman ofthe Board of Directors	18/19	-
Tommi Salunen **)	Member ofthe Audit Committee	13/14	4/4
Board member until 22 March 2013
Pii Kotilainen		5/5	-
Juhani Mäkinen		4/5	1/1
*) Member until 22 March 2013

**) New member as of 22 March 2013

Board Committees

Componenta has a BoardAudit Committee.Afterthe Annual General Meeting,the Board of Directors elects from among its members the Chairman and members forthe Committee,for one year at a time. In the election ofthe Audit Committee members,the relevant qualification requirements are taken into account.

In 2013,the Board of Directors elected Riitta Palomäki as the Chairman and Tommi Salunen as a member ofthe Audit Committee.Both members ofthe Audit Committee are independent ofthe company and its major shareholders.

1e Audit Committee has no independent decisionmaking power. Instead,the Board of Directors makes decisions based on the preparations ofthe Audit Committee.1e Chairman ofthe Audit Committee reports on the work ofthe Audit Committee atthe Board meetings following the Audit Committee meetings.1e invitation and materials ofthe Audit Committee meetings are sentto all Board members, who all have the rightto attend the meetings ofthe Audit Committee.

1e Board of Directors has confirmed a written agenda for the Audit Committee.1e main tasks and duties ofthe Audit Committee are to:

monitor and supervise the reporting process of financial statements, ensure thatthe reporting process generates correctinformation, and approve important accounting principles
review and oversee the quality and integrity ofthe annualreport and the annual financial statements as well as the interim reports
monitorthe financial position ofthe company and the sufficiency of financing and prepare matters and proposals to the Board on a need-to-know basis
monitorthe efficiency, plans and processes ofthe Group's internal control, internal audit and risk management systems
review the company's Corporate Governance Statement

review the external audit plan and monitorthe statutory audit ofthe financial statements and consolidated financial statements, approve the budget ofthe external audit as well as new assignments above the limit set by the Audit Committee
meet with the external auditor quarterly and review all materialreports from the auditor
evaluate the independence ofthe statutory auditor or audit firm, particularly the provision ofrelated services to the company to be audited
prepare the proposal for a resolution on the election ofthe auditor
meet with the management ofthe company, particularly the CEOand the CFO, and risk management.

In 2013,the Audit Committee convened five times and the attendance rate was 100%.Componenta's CFO Mika Hassinen served as secretary to the Audit Committee.Also regularly participating atthe Committee's meetings were the President and CEO,the auditors and the General Counselresponsible forrisk management.

1e Committee regularly evaluates its performance and working practices and carries out a related self-evaluation once a year. In December 2013,the Audit Committee evaluated its own performance in 2013 under the leadership ofthe Chairman.

President and CEO

The Board of Directors appoints the President and CEOand decides on the President's remuneration and other benefits.&e President and CEOis responsible for managing and developing Componenta's business in accordance with the Finnish Limited Liability Companies Act and the instructions given by the Board of Directors.

&e President and CEOprepares and presents matters for consideration at Board meetings and implements the decisions ofthe Board of Directors.He reports to

the Board of Directors on matters including the company's financial situation, its business environment and other major matters.&e President and CEOis Chairman of Componenta's Corporate Executive Team and Extended Corporate Executive Team.

Heikki Lehtonen, b.1959, M.Sc.(Eng.), is President and CEO of Componenta.He has acted as Componenta's President and CEOsince 1993.

Corporate Executive Team

Componenta's Corporate Executive Team assists the President and CEOin managing and developing Componenta.%e Board of Directors decides on the appointment of members ofthe Corporate Executive Team and on the terms oftheir employment based on the proposal ofthe President and CEO, in accordance with the "one over one" principle in use atthe Group.

%e members of Componenta's Corporate Executive Team are those in charge ofthe Group's majorfunctions and directors in charge ofthe Group's Operations.%e Corporate Executive Team convenes regularly, atleast once a month. Its key tasks include promoting the achievement ofthe Group's long-term business goals,the creation of added value and the development of business operations, ensuring the efficiency of operations throughoutthe Group, developing management practices and promoting common operating models and principles.

Atthe beginning of 2013,the Corporate Executive Team comprised President and CEOHeikki Lehtonen, Senior Vice President of Machine Shop Division Juha Alhonoja, CFO Mika Hassinen, SeniorVice President of Foundry Division Olli Karhunen, SeniorVice President of Sales and Customer Services Antti Lehto (until 31 May 2013), Senior Vice President of Human Resources and Internal Communication Anu Mankki,General Counsel Pauliina Rannikko and SeniorVice President ofAluminium Division Sabri Özdoğan.

Furio Scolaro, SeniorVice President, Sales and Product Development, was appointed as a member ofthe Corporate Executive Team as of1June 2013 afterAntti Lehto had moved to another employer.

%e Corporate Executive Team is presented in more detail in the section Corporate Executive Team.

In 2013,the Corporate Executive Team focused on implementing the Group-wide efficiency programme and the related projects aimed atimproving productivity and cost-efficiency.%e Corporate Executive Team also updated the Group's strategy.

Extended Corporate Executive Team

Componenta's Extended Corporate Executive Team is responsible for monitoring the divisions' financial and operational development and planning and implementing the necessary measures.

In 2013,the Extended Corporate Executive Team comprised the members ofthe Corporate Executive Team as well as Seppo Erkkilä,Vice President, Foundries in Finland;Ömer Lütfi Erten,Vice President,Orhangazi Foundry in Turkey; and Patrick Steensels,Vice President,Heerlen Foundry in the Netherlands, who is also in charge of coordinating Componenta's operations in the Netherlands.

Remuneration Statement 2013

Remuneration of key management

Remuneration of the Board of Directors and the Audit Committee

e Annual General Meeting decides on the remuneration ofthe Board of Directors and the Audit Committee. In 2013, the Annual General Meeting decided thatthe Chairman of the Board of Directors be paid an annual fee of EUR 60,000, ordinaryBoard members EUR 30,000 and members of

committees subordinated to the Board EUR 5,000, and that travel expenses be paid in accordance with the company's travelregulations.

e total amount of annual fees paid to Board members in 2013 was EUR 220,000.Board members do not participate in Componenta's share-based incentive scheme or pension schemes.

Remuneration of the Board of Directors and the Audit Committee

Board of Directors in 2013		Salaries,fees and fringe benefits, EUR 1,000
Suutari Harri	Chairman	60
Ruotsala Matti	Vice Chairman	30
Lehtonen Heikki	member	30
Miettinen Marjo	member	30
Palomäki Riitta	member,Chairman ofthe Audit Committee	35
Salunen Tommi	member,member ofthe Audit Committee	35
Total		220

Remuneration of the President and CEO and other management

Componenta's Board of Directors decides on the remuneration and other benefits ofthe President and the deputy to the President, and on the terms of employment of members ofthe Corporate Executive Team, based on the proposal ofthe President and CEOand in accordance with the "one over one" principle used by the Group.

Remuneration systems

Each year,the Board of Directors reviews the market competitiveness oftotalremuneration,the used instruments and their weighting and goals in the remuneration of differenttarget groups.

Short-term remuneration system

Short-term remuneration (one calendar year) is based on meeting measurable personal and business targets setfor the year.

Long-term share-based incentive scheme

e Board of Directors decides on long-term share-based incentive schemes as part oftotalremuneration and manages the implementation ofthe schemes.

A share-based incentive scheme has been approved for the Group's key personnel for 2013.e aim ofthe scheme is to unite the objectives of shareholders and key personnel in orderto increase the value ofthe company, commit key personnel to the company and offerthem a competitive reward scheme based on ownership of company shares.

e scheme contains one earning period, calendar year 2013, and the earning criteria forthe period is the result of Componenta Group after financial items.

Any bonuses forthe 2013 earning period will be paid partly in company shares and partly in cash.e aim is thatthe portion paid in cash covers taxes and tax-related costs arising from the bonus forthe key person.e shares may not be transferred during the restriction period of approximately two years. In the eventthat a key person's employmentis terminated during the restriction period,he or she mustreturn the shares provided as a bonus to the company without compensation.

Remuneration and benefits of other members of the Corporate Executive Team

e fixed cash salary ofthe members ofthe Corporate Executive Team includes compensation for any work on the boards of directors of Componenta Group companies and any associated companies.

e maximum bonus, linked to financial and personal targets,thatis paid under short-term remuneration systems is position-related and, on average, some 40 per cent of a person's annual earnings.

e potential bonus from the long-term share-based incentive scheme for one earning period corresponds to, on average, 30–40 per cent of a person's annual earnings.

Members ofthe Corporate Executive Team are entitled to additional healthcare insurance in addition to the statutory occupational healthcare.

Members ofthe Corporate Executive Team are also entitled to a company car as part oftheirtotalremuneration.

Pension agreements

e Finnish members ofthe Corporate Executive Team, working in Finland, including the President and CEO, are paid supplementary pension worth 6 per cent oftheir basic annual salary. Forthe CFOacting as deputy to the President,the company's annual payments for his supplementary pension correspond to his total gross salary for one month.

Remuneration of the President and CEO, deputy to the President and other members of the Corporate Executive Team

2013	Salaries, fees and fringe benefits EUR 1,000	Bonuses, EUR 1,000	Voluntary pension benefits, EUR 1,000	Benefits paid on termination of employment, EUR 1,000	Share-based payments, EUR 1,000	Total, EUR 1,000
President and CEO Heikki Lehtonen	319	-	64	-	-	383
Deputy to the President Mika Hassinen	226	-	15	-	-	241
Other members ofthe Corporate Executive Team	984	-	45	-	-	1,029
TOTAL	1,529	-	124	-	-	1,653

Terms of employment of President and CEO Heikki Lehtonen

Salary and fringe benefits	Total monthly salary EUR 25,000, which consists of cash salary and fringe benefits (unlimited company car benefit and telephone benefit).
Short-term remuneration system	e President and CEOdoes not participate in the short-term remuneration system, which has been taken into accountin his long-term remuneration.
Long-term incentive schemes	e President and CEOhas been entitled to the Group's long-term share-based incentive scheme.
Pension	e retirement age ofthe President and CEOis 63 years, and he has a supplementary pension agreement.e agreementincludes old age pension afterreaching the age of retirement, paid-up pension policy rights ifthe employment ofthe insured person is terminated before reaching the age entitling to old age pension as stated in the insurance policy, disability insurance, and life insurance forthe duration ofthe employment, ofthe paid-up pension policy and of pension.is benefit was accumulated by EUR 19,000 in 2013. In addition,the President and CEOhas a separate pension capitalisation agreement, under which the pension begins atthe age of 63 years and ends atthe age of 68 years or when the savings in the capitalisation agreement have been used up.e pension capitalisation agreement was made in 2013 and in 2013 EUR 45 000 was paid to the savings underthe capitalisation agreement.e Board of Directors confirms the amount ofthe payment each year.e actual pension is calculated annually by dividing the remaining amount ofthe savings by the remaining number of months for the pension.
Termination of employment	e President and CEO's contract of employment may be terminated by the company by giving twelve months'notice and by the President and CEOby giving six months' notice.e President and CEOis not entitled to any separate compensation after giving notice or being given notice otherthan the salary and benefits agreed in the terms of notice and the supplementary pension in accordance with the principles of the paid-up pension policy.

Risk management and internal control

Main features ofthe internal control and risk management systems in relation to the financialreporting process

The objective ofinternal control and risk management related to Componenta's financialreporting is to ensure thatthe reporting is reliable and that all applicable laws and regulations have been complied with.

Componenta compiles its financialreporting in accordance with the International Financial Reporting Standards (IFRS),the new Finnish Securities Markets Act, the Finnish Accounting Act and the guidelines and statements ofthe Finnish Accounting Board, while also complying with the rules and regulations ofthe Finnish Financial SupervisoryAuthority and the rules ofNASDAQ OMX Helsinki Ltd.

Control environment

6e purpose of Componenta's internal control is to ensure thatthe Group operates in line with its strategy profitably and effectively,thatrisk managementis arranged appropriately and adequately, and that financial and operationalreporting is reliable.Control is based on Componenta's values, operating principles, policies and guidelines (the Componenta Way to Operate,the Disclosure Policy and the Code of Conduct). Internal control is a part of management, governance and daily operations.

Financialreporting and supervision are based on budgets drafted and confirmed once a year and on monthly performance reporting.GroupAccounting is responsible forthe financialreporting process and for ensuring that the related instructions are consistent and updated regularly.Controllers atthe unit and division level as well as management are responsible for ensuring that reporting is carried outin accordance with instructions.

Open and adequate communications ensure an effective and functional control environment. Information on reporting tools as well as instructions and principles relating to financialreporting have been provided to all the parties involved in financialreporting, and they are also available on the Group's intranet. Matters such as upcoming changes to IFRSand accounting principles or new reporting requirements are communicated to the financial organization on a regular basis.6e Group's CFO reports to the Board's Audit Committee regularly on matters pertaining to internal control.

6e Audit Committee appointed by the Board of Directors supervises the Group's financialreporting process and monitors the effectiveness ofinternal control, internal audit and risk management systems, and reports its observations to the Board.

Monitoring

6e profitability and efficiency of Componenta's operations and the achievement of financial objectives are monitored regularly by means of Group-wide financialreporting.6e effectiveness of measures in internal controlrelated to financialreporting is monitored by the Board of Directors, the Audit Committee,the President and CEO,the Corporate Executive Team and operative managementteams.

Common,Group-wide ways of operating also cover reporting, and the related instructions are included in the Controller's Manual maintained by GroupAccounting. GroupAccounting has defined the control measures which coverthe reporting process and allocated responsibilities fortheirimplementation.

All operational business units have their own controllers who are responsible for financialreporting in cooperation with the management ofthe respective unit.6e managementteam for each business unit and division analyses its own financialreports, including volumes, profits, costs, profitability and working capital, every month before the reporting meeting ofthe Corporate Executive Team.

6e Board of Directors is responsible forthe final evaluation ofthe Group's result.

Internal audit

Componenta Group's internal auditis conducted in accordance with the operating principles approved by the Board of Directors, which are based on the Group's internal reporting and the annual audit plan approved by the Audit Committee.

Componenta Group's financial administration conducts an internal audit of Group companies in accordance with the annual plan together with the external auditors.

Financialreporting that covers the whole Group regularly monitors how well financial targets are being met.6e reports include actual figures, budgets and up-to-date estimates forthe current year.

Risk management

Risk managementis part ofthe company's monitoring system and it aims to ensure thatthe risks to which the company's business is exposed are identified, evaluated and monitored. It aims to help forecastthe threats and opportunities for business operations and ensure the continuity of business.

6e Board of Directors confirms the principles and responsibilities forrisk management.6e Board's Audit Committee monitors the effectiveness ofrisk management systems.6e President and CEOsupervises the implementation ofthe risk management programme and ensures thatitfocuses on matters that are essential forlocal and operational activities.6e Corporate Executive Team participates in identifying and evaluating risks, in allocating responsibilities and in monitoring the risks.

6e General Counsel is responsible for general development of Componenta's risk management, and the CFOis responsible for development ofrisk management relating to financialrisks.

Management of business operations is responsible for identifying and managing risks in their own business areas as part oftheir operational activities.

All employees are responsible foridentifying and evaluating the risks that are related to their work orthat are otherwise undertheir control and forreporting on them to their supervisors.

6e financialrisks relating to Componenta Group's business operations are managed in accordance with the Treasury Policy approved by the Board of Directors.6e Group's treasury department manages financialrisks and ensures fortheir own partthe availability of equity and debt finance to the Group on competitive terms.6e Group's treasury departmentis also responsible for managing and hedging the cash position.

6e Corporate Executive Team conducts the Group-level Enterprise Risk Management(ERM) process annually and monitors the majorrisks ofthe operations regularly.6e SeniorVice Presidents of Operations organise operationlevel ERM processes annually and reportthe main results ofthe ERM process to the Corporate Executive Team. In the context ofthe ERM process,the main risks are identified and evaluated and corrective actions are decided on.

In 2013,the Group's Corporate Executive Team conducted the annual Enterprise Risk Management(ERM) process, in which risks were identified and evaluated and measures were decided on.

Audit

The Annual General Meeting appoints the auditor and decides on the remuneration ofthe auditor.\$e company has one auditorthat must be a firm of authorised public accountants approved by the Finland Chamber of Commerce. In addition to the duties prescribed in current accounting regulations,the auditorreports regularly to Componenta's Audit Committee and to the Board of Directors of Componenta when necessary.

\$e responsible auditor may function as an auditorfor a maximum of seven years in succession.

In 2013,Componenta's auditor was Authorised Public Accountants PricewaterhouseCoopers Oy.\$e responsible auditor was Jan Holmberg. In accordance with the decision ofthe Annual General Meeting on 22 March 2013,the fees paid to the auditor are based on invoicing.\$e fees paid to the auditors of Componenta Group's companies, based on the work performed,totalled EUR 577,000, comprising auditfees of EUR 497,000 and fees for other services EUR 80,000.

Communications

Information about Componenta and its governance is published on the Group's website.Allreleases and reports published by Componenta are available on the Group's website immediately afterthey have been published.

*e Componenta Corporate Governance documentin its entirety,the separate Corporate Governance Statement and the Remuneration Statement are available online at www.componenta.com.

Board of Directors

In 2013, Componenta's Board of Directors comprised of six members.

Harri Suutari

b. 1959, B. Sc.. (Eng.) Board Member since 2012, Chairman 2012 -

Main occupation Boardprofessional 2012 -

Primary work experience

President&CEO at PKC GroupOyj 2008 -2012 President andCEO at PKC GroupOyj 2002 - 2005 President andCEO at Ponsse Oyj1994-2000 President andCEO at KajaaniAutomatiikka Oy 1984-1996

Positions oftrust

Chairman ofthe BoardofDirectors atAlma Media Oyj andTulikivi Oyj Member ofthe BoardofDirectors at Oy M-FilterAbandPKC Group Oyj

Componenta shares 213,150

Matti Ruotsala

b. 1956, M. Sc. (Eng.) Board Member since 2012, Vice Chairman 2013 -

Main occupation

Executive Vice President at Fortum Corporation, Power Division 2009–

Primary work experience

President ofGeneration at Fortum Power andHeat Oy 2007 - 2009 ManagingDirector at Valtra Ltd2005 - 2007andVice President Plc2001 - 2005 Several senior andmanagerialpositions at KonecranesPlcand Kone Corporation 1982 - 2001 Positions oftrust

ChiefOperatingOfficer(COO) andDeputy to CEO at Konecranes

Chairman ofthe Boardat KemijokiOy andPKC GroupOyj Member ofthe Boardat Halton Group LtdandTeollisuuden Voima Oyj

Componenta shares 20,000

Heikki Lehtonen

atAGCO Corporation 2005 - 2007

b. 1959, M.Sc. (Eng.) Board Member since 1987

Main occupation

President andCEO at Componenta Corporation 1993-

Primary work experience

President andCEO at Santasalo-Gears Ltd1987 - 1994Managerial andexpert positions atJOT-Companies Ltd 1980- 1987

Positions oftrust

Vice Chairman ofthe BoardofDirectors at Pöyry Plc Member ofthe BoardofDirectors ofOtava Ltdandthe Finnish Foundation for Share Promotion Member ofthe Supervisory BoardofFinnish Business andPolicy Forum EVA

Componenta shares 7,528,492

Marjo Miettinen

b. 1957, M.Sc. (Ed.) Board Member since 2004

Main occupation ChiefExecutive Officer at EM GroupOy 2006 -

Primary work experience Managerial andexpert positions 1989 - 2001 andChairman of the BoardofDirectors at EnstoOy 2002 - 2006

Positions oftrust

Chairman ofthe BoardofTeleste Oyj andTeknariOy Member ofthe BoardofDirectors ofEM GroupOy, EnstoOy, Efore PlcandTUT foundation

Componenta shares 45,000

Riitta Palomäki

b. 1957, B.Sc. (Econ.) Board Member since 2012

Main occupation CFO at Uponor 2009 -

Primary work experience CFO at KuusakoskiGroupOy 2003 - 2009 Vice President, Controlling atABBOy 2001 - 2003 FinancialDirector, Standard Lifting Equipment at KonecranesOyj 1997 - 2001 FinancialDirector atABBService Oy 1991 - 1997 Variousmanagerialpositions within ICT atABBIndustry Oy 1983 -1991

Componenta shares 10,000

Tommi Salunen

b. 1972, M. Sc.(Econ) Board Member since 2013

Main occupation

Chairman and ManagingPartner, AavaAdvisorsOy since 2012

Primary work experience

Headofinvestment bankingHelsinki at Carnegie 2010- 2012 anddirector andsenior adviser 2008 - 2010atInvestment Bank Ab

CEO at KaupthingBank Oyj 2006 - 2007 Expert positions at Nordea 1998 - 2006

Positions oftrust Member ofthe BoardofDirectors ofStaffpoint HoldingOy

Componenta shares 20,000

Corporate Executive Team

In 2013, Componenta's Corporate Executive Team comprised of eight persons.

Heikki Lehtonen

b. 1959, M.Sc. (Eng) President andCEO 1993 -

Primary work experience President andCEO at Santasalo-Gears Ltd1987 - 1994 Managerial andexpert positions atJOT-Companies Ltd1980- 1987

Componenta shares 7,528,492

Juha Alhonoja

b. 1975, Lic.Sc. (Tech.) SeniorVice President, Machine ShopDivision 2012 - Componenta shares 1,400

Primary work experience Vice President, Machining Technology at Componenta 2009 - 2012

Director, Manufacturing at GardnerDenver 2008 Severalmanagerial anddevelopment positions at Componenta Groupandbusinessunits in Finland, Sweden andthe Netherlands 2001 - 2008

Mika Hassinen

Primary work experience

b. 1969, M.Sc. (Econ.), M.Sc. (For.) CFO 2008 -, Deputy to the CEO 2012 -

Services at Stora EnsoOyj 2005 - 2007

Bank AG Ltdand McKinsey &Co 1996 - 2005

SeniorVice President, Finance&IT, Corporate Market

Managerial andexpert positions at Stora EnsoOyj, Deutsche

Componenta shares 13,500

Olli Karhunen

b. 1959, M.Sc. (Eng.) SeniorVice President, Foundry Division 2012 -

Primary work experience

Componenta shares 15,115

SeniorVice President, Componenta, FoundriesDivision 2006 - 2010, Operations Finland2011, operationsDevelopment 2012 Managerialpositions at Componenta Groupandits divisions andbusinessunits 1990- 2006 Expert andother positions at KuusakoskiOy andTechnical Research Center1984- 1990

Anu Mankki

b. 1963, M.Sc. (Phil.) SeniorVice President, Human Resources 2005 -

Primary work experience

Vice President, Human resources development at Metso Corporation 2003 - 2005 Managerial andexpert positions relating toHRin Finlandand abroadat Metso Corporation, MetsoPaper andValmet Paper Machines 1988 - 2003

Componenta shares 2,800

Pauliina Rannikko

b. 1970, LL.M., M.Sc. (Econ.) GeneralCounsel andSeniorVice President, Legal andRisk management 2010-

Primary work experience

GroupGeneralCounsel, Onninen Oy 2007 - 2010 Managerial andexpert positions at FinnairOyj andRoschier, Attorneys Ltd1997 - 2007

Componenta shares 600

Furio Scolaro

b. 1962, M.Sc. (Eng.) SeniorVice President, Sales andProduct Development 2013 -

Primary work experience

Several salesmanagement positions at Componenta in France as of2009, latest SalesDirector, Construction and Mining 2012 - 2013 GlobalKey Account Manager at SNECI, France 1997 - 2009 SalesOffice Manager at Labinal, Italy 1991 - 1997 Project manager at Valeo, France 1989 -1991

Componenta shares 400

Sabri Özdoğan

b. 1975, B. Sc. (Eng) SeniorVice President, Aluminium Divison 2012 -

Primary work experince

BusinessUnit Director at Componenta Manisa Wheels 2008 - 2012, managerin wheelproduction center 2006 - 2008 Planning supervisor andassistant manager at DöktasAS Manisa 2004- 2006, planning engineer1999 - 2004

Componenta shares 513

Financial Statements 2013

Information about Componenta´s result and financial position.

We have published the Financial Statements 2013 which contains information about Componenta´s result and financial position.+e Financial Statements for 2013 includes the consolidated financial statements,the financial statements ofthe parent company,the report by the Board of Directors and the auditor's report.

Click the link below to download+e Financial Statements 2013 as PDF.

In this online annualreport key economic figures for 2013 are presented in the section Key economic figures.

Key economic figures

2013 income statement, statement of financial position and cash flow statement in short, and Group development figures 2009 - 2013.

Consolidated income statement 1.1.−31.12.

MEUR	2013	2012
Net Sales	510.5	544.8
Other operating income	5.9	2.3
Operating expenses	-483.2	-525.3
Depreciation, amortization and write-down of non-current assets	-18.4	-17.9
Share ofthe associated companies´result	0.1	0.2
Operating profit	14.9	4.0
Financial income and expenses in total	-24.5	-29.4
Profit/loss after financial items	-9.6	-25.4
Income taxes	-6.0	1.4
Profit/loss forthe financial period	-15.5	-24.0

Consolidated income statement excluding one-time items 1.1.−31.12.

MEUR	2013	2012
Net Sales	510.5	544.8
Other operating income	5.7	1.0
Operating expenses	-480.1	-519.6
Depreciation, amortization and write-down of non-current assets	-18.0	-16.3
Share ofthe associated companies´result	0.1	0.2
Operating profit	18.2	10.0
Financial income and expenses in total	-24.4	-27.7
Profit/loss after financial items	-6.2	-17.6
Income taxes	-4.5	0.1
Profit/loss forthe financial period	-10.7	-17.6

Consolidated statement of financial position 31.12.

MEUR	2013	2012
Assets
Non-current assets	344.1	340.5

Current assets
Inventories	63.1	65.2
Other current assets	44.7	54.7
	107.8	119.8

Total assets	452.0	460.4

Liabilities and shareholders´equity
Shareholder´s equity	85.2	83.4

Liabilities
Non-currentliabilities
Interest bearing	136.4	202.4
Non-interest bearing	21.7	21.4
Currentliabilities
Interest bearing	103.3	54.7
Non-interest bearing	105.4	98.6
	366.8	377.0

Total liabilities and shareholders´equity	452.0	460.4

Cash flow statement 1.1.−31.12.

MEUR	2013	2012
Cash flow from operations before change in net working capital, financing and taxes	28.6	22.7
Change in net working capital	2.6	-1.0
Cash flow from operations before financing and taxes	31.2	21.7
Cash flow from operations	2.2	-8.7
Cash flow from investments	-15.7	-19.2
Cash flow from financing activities	3.0	5.9
Change in liquid assets	-10.5	-22.0

Group development 2009 − 2013

MEUR	2009	2010	2011	2012	2013
Net sales	299.6	451.6	576.4	544.8	510.5
Operating profit	-15.4	13.5	22.5	4.0	14.9
Financial income and expenses	-21.8	-23.5	-25.9	-29.4	-24.5
Profit/loss after financial items	-37.2	-10.0	-3.4	-25.4	-9.6
Profitforthe financial period	-28.7	-7.5	-3.1	-24.0	-15.5

Order book at period end	58.8	94,6	99,5	82,9	87,3
Change in net sales,%	-56.0	50.7	27.6	-5.5	-6.3
Share of export and foreign activities in net sales,%	82.7	88.1	90.0	92.0	91.6

Group development 2009 − 2013 excluding one-time items

MEUR	2009	2010	2011	2012	2013
Net sales	299.6	451.6	576.4	544.8	510.5
Operating profit	-15.4	13.6	29.8	10.0	18.2
Financial income and expenses	-21.8	-23.5	-25.9	-27.7	-24.4
Profit/loss after financial items	-37.2	-9.9	3.9	-17.6	-6.2

	31.12.2009	31.12.2010	31.12.2011	31.12.2012	31.12.2013
Statement of financial position total, MEUR	388	420	437	460	452
Netinterest bearing debt, MEUR	242	230	243	236	230
Invested caoital. MEUR	317	311	326	340	325
Return on investment,%	-4.1	5.0	7.8	2.0	4.9
Return on equity,%	-45.1	-10.3	-5.8	-32.9	-18.6
Equity ratio,%	17.5	16.8	9.4	18.1	18.9
Net gearing,%	356.4	325.0	591.4	283.5	269.6
Investments in non-current assets, MEUR	17.9	8.5	21.8	19.2	18.9
Number of personnel at period end	3,614	4,016	4,240	4,104	4,154
Average number of personnel	3,684	3,853	4,234	4,249	4,153

Information for investors

Information relating to Componenta's Annual General Meeting and Interim Reports in 2014.

Annual General Meeting

%e Annual General Meeting of Componenta Corporation will be held at14.30 on ursday,13 March 2014 atthe company's headquarters in Käpylä, in the auditorium of the Sato building at Panuntie 4, 00610Helsinki, Finland.

Right to participate

A shareholder, who on the record date ofthe General Meeting, 3 March 2014, is registered as a shareholderin the company's shareholders'register maintained by Euroclear Finland Ltd, is entitled to attend the General Meeting.

Registration

A shareholder, who is registered in the shareholders' register, wishing to participate in the General Meeting is required to register his/her participation no laterthan 10 March 2014 at10.00 by letterto the address Componenta Corporation,Panuntie 4, 00610Helsinki, by telephone +358 10 403 2744, by fax +358 10 403 2721 or by email to [email protected].%e registration letter or message must arrive priorto the expiration ofthe registration period.

Dividend and dividend policy

%e Board of Directors proposes to the Annual General Meeting that no dividend be paid forthe 1January - 31 December 2013 financial period.

%e Board of Directors takes the Group's financial performance, financing structure and growth expectations into account when making its proposal for the dividend to be paid.%e objective is to pay dividends amounting to 25–40 per cent of net profit.

Financial information in 2014

Interim report January - March 2014 on Friday 25 April 2014

Interim report January - June 2014 on Wednesday 16 July 2014

Interim report January - September 2014 on Tuesday 21 October 2014

%e press conferences for media representatives and analysts,held when the interim reports are published, will be webcast simultaneously on the company's website at www.componenta.com.

Componenta's publications and releases are available immediately aftertheirrelease date at www.componenta.com.

Componenta's 2013Annual Report has been published as an online report which can be printed out as a ready-touse PDF file or a tailored PDF file consisting ofthe pages the readeris interested in.Previous Annual Reports, SustainabilityReports and Interim Reports are also available online.Publications printed on paper can be ordered by visiting Componenta's website at www.componenta.com or by emailing [email protected].

If you register on Componenta's website at www.componenta.com, allreleases will be sentto your email address immediately aftertheirrelease.

All of Componenta's financial publications are drafted in both Finnish and English.

Investor relations and contacts

Our aim is to provide comprehensive information about Componenta's business, operating environment and financial position forinvestment decisions.

%irty days priorto the publication of any financial statements orinterim reports, we have a closed window

More information for investors

All our published releases and reports are available on ourIR website at www.componenta.com. period during which we do not meet with capital market representatives or comment on result developments.

Investors and shareholders are served by Componenta's investorrelations team consisting ofthe President and CEO,the CFOand the Communications Director.Contact ourinvestorrelations team by email at [email protected].

Contact

Investors and shareholders are served by Componenta's investorrelations team by email at [email protected].

AI assistant

Componenta Oyj — Annual Report 2013

3307_10-k_2014-02-17_b93aacd5-564f-415d-8c79-384a3236d3bb.pdf

Table of contents

Governance

Componenta 2013

For the reader

President´ s review

Heikki Lehtonen

Key figures

Componenta's key figures 2013 compared to the previous year

Key figures

e year in brief

Key measures at Componenta during the year 2013

Forerunner of foundry business

Componenta 's strategy 2014 - 2016

Making our vision a reality requires profitability.

Competitive advantage through strengths

Sound foundation for growth

Componenta's financial objectives 2015

Componenta´s mission

Componenta´s vision

Componenta´s values

Strategic measures

Measures to reach strategic goals in 2013

Business operations

Our business in 2013

Componenta´s operational units

Net sales by market area

Development of business environment

Componenta's operational units

Customers

Heavy trucks, 31% of sales in 2013

Construction and mining, 19% of sales in 2013

Machine building, 18% of sales in 2013

Automotive, 15% of sales in 2013

Agricultural machinery, 17% of sales in 2013

Sales by customer industry Componenta's customers

Business segments

Share of each division of the Group *)

Production tons,1,000 t

Foundry division

Foundry Division

Machine shop division

Machine Shop Division

Aluminium division

Aluminium Division

Business developmentin 2013

Sustainability at Componenta

Profitability ensures the continuity of operations

Looking after people

Environmental impact of a component during its life cycle

Sustainability targets and measures in 2013

Significance ofresponsibility at Componenta

Personnel by country

Environmental costs, MEUR

Environmental impact of production

Eco-friendly is also economically friendly.

Investments to reduce environmental impact

Environmental cost breakdown Total energy consumption, GWh

Responsible sourcing and raw materials

High-quality castings are made from pure raw materials

Case / Pori foundry discontinued the use of carcinogenic insulation wools

Ingots and liquid aluminium used in melting, %

Recycled steel and pig iron used in melting, %

Product development

Case / New component for a forestry machine

Energy efficiency

Various measures are taken continuously to increase efficiency of energy consumption.

Distribution of energy consumption Energy comsumption by production plant

36 This PDF has been generated from Componenta's OnlineAnnualReport 2013 and only contains the parts specified and downloaded by the user.Please visit www.componentareports.com/2013/en forthe full online report.

Reducing emissions

Carbon footprint

Case / Air emissions reduced at the foundry by increasing filter

Particle emissions in foundries, kg / cast t

Amines and solvents, (VOC emissions), kg / cast t

Reuse of waste

Case / Reduction of core waste at the foundry

Case / Hazardous salt waste reduced to one-tenth of previous levels

Case / Our search for new reuse applications for foundry sand

Componenta Oyj Annual Report 2013

**Share of each division of the Group *)**