	Contents
	Componenta in brief
	Group financial development
	Componenta's value creation
	President and CEO's review
	Board of Directors' report 2024
	Sustainability statement 2024	18
	Key figures	74
	Calculation of key financial ratios	75
	Consolidated financial statements	76
	Consolidated income statement	76
	Consolidated statement of comprehensive income	77
	Consolidated statement of financial position	78
	Condensed consolidated cash flow statement	79
	Statement of changes in consolidated shareholders' equity	80
	Notes to the consolidated financial statements	81
	Accounting principles for the consolidated financial statements	81
1.	Net sales	86
2	Other operating income	88
3	Operating expenses	88
4	Personnel expenses	89
5	Research and development costs	89
6	Depreciation, amortization and write-downs	89
7	Financial income and expenses	90
8	Income taxes	90
9	Earnings per share	91
10	Intangible assets	91
11	Goodwill	92
12	Tangible assets	93

13	Inventories	96
14	Accounts receivables	97
15	Other short-term receivables and accrued income	98
16	Deferred tax assets and liabilities	98
17	Investment properties	100
18	Share capital, share premium reserve and other reserves	101
19	Capital management	102
20	Share-based payment	102
21	Pension obligations and other benefit plans	103
22	Provisions	103
23	Financial risks and instruments	104
24	Other non-interest bearing liabilities and accruals	107
25	Reconciliation of financial liabilities to cash flow statement	108
26	Lease liabilities	109
27	Contingent liabilities	109
28	Related party disclosures	110
	Parent company financial statements	111
	Parent company income statement	111
	Parent company balance sheet	112
	Parent company cash flow statement	113
	Notes to the parent company financial statements	114
	Accounting principles for the parent company financial statements	114
	Signatures for the financial statement and board of directors' report	124
	Auditor's Report	125
	Auditor's ESEF assurance report	131
	Assurance report on the sustainability statement	133
	Information for investors	136
	Componenta Corporation Corporate Governance Statement 2024	137

statements

Consolidated financial

Notes to the consolidated financial statements

Componenta in brief

Componenta Corporation is an international technology company and Finland's leading contract manufacturer in the machine building industry. Sustainability and customers' needs are at the core of the company's extensive technology portfolio. Componenta produces components for its global customers, which are manufacturers of machinery and equipment. The company's shares are listed on the

Net sales, MEUR	97.1
EBITDA, MEUR	7.9
Adjusted EBITDA, MEUR	4.9
Operating result, MEUR	2,6
Order book at year end, MEUR	16,7
Personnel	~ 680

Breakdown of net sales, %

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Group financial development

Group development, Jan1-Dec 31	2024	2023	2022	2021	2020
Net Sales, EUR thousand	97,145	101,809	109,087	87,254	70,040
EBITDA, EUR thousand	7,854	5,278	7,086	4,959	3,750
Adjusted EBITDA, EUR thousand*	4 930	5 278	7 086	4 959
Operating result, EUR thousand	2,562	3,762	1,555	13	-2,034
Operating result margin, %	2.6	3.7	1.4	0	-2.9
Financial income and expenses, EUR thousand	-2,358	-2,193	-1,662	-418	-1,456
Result after financial items, EUR thousand	204	1,568	-106	-405	-3,489
Result for the period, continued operations, EUR thousand	204	1,547	52	-405	-3,175
Result for the period, discontinued operations, EUR thousand	0	0	0	0	2,226
Order book at period end, EUR thousand	16,682	14,532	18,481	13,954	9,536
Change in net sales, %	-4.6	-6.7	25.0	24.6	38.0
Share of export and foreign activities in net sales, %	16.5	18.6	19.9	20.1	17.0

* The reconciliation calculation of adjusted EBITDA can be found in "Key figures" section of the annual report.

Cash flow from operating activities, EUR thousand Return on investment, %

0 2 4 6 8 2020 2021 2022 2023 2024

EBITDA, EUR thousand*

50 Equity ratio, %

* The EBITDA for the financial year include a non-recurring income of EUR 2.9 million recognised in non-operating activities during the last quarter of 2024 from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

** The operating result for 2023 includes a non-recurring income of EUR 4.2 million arising from the reversal of an impairment loss related to production machinery and equipment in the foundry business. Componenta Corporation • Annual Review 2024 > Group financial development 4

Sustainability statement

statements

Consolidated financial

Notes to the consolidated financial statements

Parent company financial statements

Summary of key events in 2024

In May 2024, Componenta signed a cooperation agreement with the Finnish Defence Forces on the delivery of 120 mm mortar shell-tail assemblies to the Finnish Defence Forces during 2025–2028. The total value of the transaction is around EUR 50 million, including an option worth around EUR 9 million for 2028. The exercise of the option was confirmed in December 2024.

Componenta acquired the business operations including inventories, fixed assets and properties of the Kalajoki plant and the Sepänkylä machining and service centre from Fortaco Group for around EUR 2.8 million on 1 October 2024. The business operations became part of Componenta on the closing date of the transaction. Componenta will pay Fortaco Oy for the properties used by the Kalajoki and Sepänkylä business operations no later than one year later, i.e. on 1 October 2025. Until then, Componenta will pay rent to Fortaco for the properties in Kalajoki and Sepänkylä. The rent paid will be deducted from the purchase price of the properties of EUR 1 million. Componenta is financing the transactions with its internal financing and the financing limits at its disposal. Componenta recognised a non-recurring non-operational gain of EUR 2.9 million from the transaction for the 2024 financial year.The net sales of the acquired business operations were around EUR 9.6 million in 2023. The Kalajoki and Sepänkylä plants carry out welding, machining, surface treatment and installation of demanding steel parts and components. The acquired operations have a total of around 60 employees. The transaction has strengthened Componenta's service offering and capability for original equipment manufactures.

Componenta agreed on a financing arrangement of up to USD 3 million with a US investor MPL. The arrangement is valid from 1 July 2025 to 31 December 2027. Under the financing arrangement, Componenta may, at its sole discretion, raise funds in the form of a loan from MPL in instalments of up to USD 750,000. Against the loan, Componenta will then issue convertible debentures to MPL, with a maturity of three years. The annual interest rate on the convertible debentures is 4%. Componenta may, at any time, redeem convertible debentures from MPL by paying the principal amount and any accrued interest to MPL. MPL may demand the conversion of a convertible debenture after 18 months have passed from the issue of the convertible debenture. The subscription price per share for each instalment corresponds to 91.5% of the volume-weighted average price of the company's share over five consecutive trading days.

In the second quarter, Componenta agreed on a new EUR 2 million working capital loan with LocalTapiola and Elo Mutual Pension Insurance Company. The loan was drawn down in full on 12 April 2024. The loan period is five years.

Key figures

	2024	2023	Change, %
Net sales, EUR thousand	97,145	101,809	-4.6
EBITDA, EUR thousand	7,854*	5,278	48.8
Adjusted EBITDA, EUR thousand	4,930***	5,278	6.6
Operating result, EUR thousand	2,562*	3,762**	-31.9
Operating result, %	2.6*	3.7**	-28.7
Result after financial items, EUR thousand	204	1,568	-87.0
Net result, EUR thousand	204	1,547	-86.8
Basic earnings per share, EUR	0.02	0.16	-86.8
Diluted earnings per share, EUR	0.02	0.16	-86.8
Cash flow from operating activities, EUR thousand	8,232	1,126	631.2
Interest-bearing net debt, EUR thousand	5,472	9,097	-39.9
Net gearing, %	21,2	35,6	-40.5
Return on equity, %	0.8	6.2	-87.3
Return on investment, %	6.6	9.8	-32.6
Equity ratio, %	41.3	45.0	-8.2
Capital expenditure incl. lease liabilities, EUR thousand	6,732	4,066	65.6
Number of personnel at the end of the period, incl. leased workers	689	615	12.0
Average number of personnel during the period, incl. leased workers	639	631	1.3
Order book at the end of the period, EUR thousand	16,682	14,532	14.8

* The EBITDA and operating result for 2024 include a non-recurring non-operational income of EUR 2.9 million from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

** The operating result for 2023 includes a non-recurring income of EUR 4.2 million from the reversal of an impairment loss related to production machinery and equipment in the foundry business.

*** The reconciliation calculation of adjusted EBITDA can be found in "Key figures" section of the annual report.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Componenta's value creation

Capital	Human and intellectual capital › ~ 680 professionals › An inspiring corporate culture that encourages development › 200 years of expertise in the metal industry › Extensive technical expertise in manufacturing › Continuous improvement and development of manufacturing processes › Goal-oriented environmental, health and safety management	› Reducing waste and making recycling more efficient › Innovative reuse of materials › The company's recognisability and reputation as a reliable contract manufacturer Financial capital › Balance sheet total EUR 63.4 million › Net debt EUR 5.5 million › Diverse ownership base › Long-term customer relationships	Supply chains › Purchases/procurement of raw materials, materials and services EUR 60.8 million › Comprehensive subcontractor network Assets › Production in Finland in 10 locations (2 foundries, 4 machining units, 1 forge, 1 pipe service, 1 plate service and 1 welding and surface treatment unit) › Investments › Karkkila and Pori industrial properties
Componenta	Strategy Strategy focus areas: in-depth customer knowledge, sustainability, operative reform, personnel as a key to success and inorganic growth We are aiming to be the primary supplier with an extensive offering for our customers.
Output	Products › Foundry products: 18,966 tonnes › Machining: 1,091,728 pcs › Pipe products: 344,862 pcs › Metal sheet cuttings: 92,615 pcs › Forged blanks: 1,623 pcs › Welded sheet structures: 1,289 tonnes (October–December 2024)	Services › Prefabrication (pipe, sheet, casting and forging products) › Further processing (machining, heat treatment and surface treatment) › Method planning › Component manufacturing design	Carbon footprint › In 2024, the combined greenhouse gas emissions from all these sites at the Group level totalled 69,401 tCO2 eq.
Impacts	Financial effects › Investments › Taxes › Payments to suppliers and partners › Interest expenses paid to creditors › Increase in the value of the share › Salaries and benefits paid to employees	Social impacts › Employer impact in different locations › A reliable supplier for customer companies › A safe and responsible employer › Career development opportunities for personnel › A safe working environment for personnel	Environmental impacts › Improving the efficiency of manufacturing methods reduces the environmental load › Reuse/recycling of waste › Consideration of the environmental aspects of investments
Change dynamics affecting business operations	› changes in the global market situation and consolidation development		Increasing sustainability requirements, changes in domestic competitiveness, availability of skilled labour, digitalisation and technological development,

PRESIDENT AND CEO'S REVIEW

President and CEO's review

Componenta grew through acquisitions and the market picked up towards the end of the year

"All in all, there was an upward trend in 2024. In the weak first quarter, the development of volumes and the order book remained well below expectations as a result of low demand and particularly because of the poor market situation prevailing in the agricultural machinery industry across Europe. Despite the low utilisation rates of our iron foundries in the first half of the year, we ramped up serial production for new volume products, which had a momentary negative impact on production efficiency and quality level. Starting in the second quarter, our high-quality production capability has improved through systematic measures, and our order book has begun to grow slightly. In late spring 2024, we announced a significant acquisition in the defence equipment industry, the impacts of which began to show in the company's operations during the remainder of the year.

The overall increase in net sales strengthened in the second half of the year, when our total sales exceeded the level of the comparison period. We were able to maintain good service capability across the Group in a challenging operating environment throughout the year.

Market uncertainty prevailed throughout 2024

As a contract manufacturer, the level of customer demand and, consequently, the utilisation rates of our production units have a direct impact on our profitability. Through the low level of demand, the result for 2024 was significantly affected by the general economic situation, characterised by

market uncertainties, a high level of inflation and high interest rates. During the year, inflation stabilised at a moderate level, and the availability of raw materials, other materials and components is currently at a good level. We are actively monitoring market developments and ensuring that our own supply chains continue to work effectively.

At the moment, there are no significant near-term risks in the availability of electricity, but the general price level of electricity involves uncertainties. Significant price fluctuations and their management have become part of daily life in energy-intensive industries.

Exceptional labour market disruptions had a negative impact on our and our customers' financial performance repeatedly during the year. The direct impacts were particularly pronounced in the first half of the year and in the last quarter as a result of strikes and various measures restricting our operations. Our liquidity remained good throughout the year.

The first year of the 3-year strategy period

The end of 2024 also marked the end of the first year of the threeyear period of our updated strategy. The measures have progressed in accordance with our plans. We have strengthened our customer knowledge throughout the organisation and have cooperated more closely, taking customer needs into account in component manufacturing design, for

statement Contents Board of Directors' report

Sustainability

Consolidated financial statements

Notes to the consolidated financial statements

Parent company

financial statements

example. We have also increased the role of sustainability as one of our competitive advantages and prepared for regulatory changes and the resulting needs, and for our first CSRD report. Our sustainability work continues to focus on environmental considerations, safety at work and development needs that are important for the well-being of our personnel. We work to be an accidentfree workplace, where diversity, non-discrimination and equality are an important part of the everyday corporate culture. Our employees' competence, expertise, motivation and continuous development are essential and critical factors for us as a contract manufacturer, and we will continue to invest in these aspects.

In addition to organic growth, one of our strategic growth drivers is to grow through acquisitions, and related to this, we announced an acquisition in July 2024. With the acquisition, our offering has been complemented by the manufacturing of demanding welded structures and strong technical expertise in welding. In the last quarter, we integrated these operations into Componenta and started our synergistic development work.

The company's offering meets customers' needs even better than before

With our operational development and investments, we want to continue to guarantee our customers a high level of delivery reliability and product and service quality. Our exceptionally comprehensive offering has also been further expanded with the manufacturing capability of demanding welded structures. We now offer our customers a comprehensive range of sustainably manufactured castings, machining, metal sheet cutting, pipe products, welded structures and forged blanks from our production units in Finland. We also leverage the capabilities of our subcontractor network in our overall offering.

Towards growth

For the majority of our customers, actual growth prospects have moved cautiously optimistically into 2025. As a contract

manufacturer, we will continue to actively pursue measures to strengthen our market position. Accordingly, we are working to be the preferred sustainable total supplier for our customers, with a wide offering.

I would like to take this opportunity to thank our employees for their commitment and strong input during the year, and our customers, suppliers and other stakeholders for their valued cooperation and trust. We are off to a good start in 2025.

Sami Sivuranta President and CEO

Sustainability statement Contents President and CEO's

Consolidated financial statements

Board of Directors' report 2024

Business model

Componenta Corporation is an international technology company and Finland's leading contract manufacturer in the machine building industry. The company and its predecessors have more than 200 years' experience in metal processing, procedure design, product development cooperation and various manufacturing technologies and their development. The company's operational functions are located in Finland. Componenta has an extensive technology portfolio. The company manufactures cast and machined metal components, forged blanks, pipe products and metal sheet cuttings. Componenta's business model is built on longterm customer relationships. The company's customers are global machine and equipment manufacturers. Componenta's production is focused on serving customers flexibly, especially in short and mediumsized production runs. The wide range of production units covers sizes ranging from hundreds of grams to thousands of kilograms, volumes from individual units to series of tens of thousands, and a wide variety of material options.

In Componenta's value chain, value is mainly created during the use of the end products when Componenta's customers can produce long-term end products. Componenta's raw material and supply chains are global.

Summary of key events in 2024

business operations were around EUR 9.6 million in 2023. The Kalajoki and Sepänkylä plants carry out welding, machining, surface treatment and installation of demanding steel parts and components. The acquired operations have a total of around 60 employees. The transaction has strengthened Componenta's service offering and capability for original equipment manufacturers.

Board of Directors' report statement Contents President and CEO's Consolidated financial statements

Parent company financial statements

Net sales

Net sales by market area

	Jan 1–Dec 31, Jan 1–Dec 31,
EUR thousand	2024	2023
Finland	81,090	82,813
Sweden	10,517	11,286
Germany	1,496	2,374
Other European countries	3,649	5,010
Other countries	417	312
Internal items/eliminations	-24	13
Total	97,145	101,809

Net sales decreased by 4.6% from the previous year to EUR 97.1 million (EUR 101.8 million). The decrease in net sales resulted from lower delivery volumes caused by lower demand in our customer industries than in the previous year, and from lower main raw material and energy index levels included in sales prices. Componenta's net sales were divided between customer industries as follows: machine building 39% (45%), agricultural machinery 20% (30%), defence equipment industry 15% (4%), energy industry 14% (9%), forestry machinery 7% (7%) and other industries 5% (5%).

Order book

Te	Dec 31, 2024	Dec 31, 2023
Order book	16,682	14,532

Componenta's order book at the end of 2024 was EUR 16.7 million (EUR 14.5 million). The order book increased by EUR 2.8 million from the end of the previous quarter. The order book contains the orders confirmed to customers for the next two months. The increase in the order book from the previous year was affected by the acquired business operations and new sales secured by Componenta.

Result	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Operating result, EUR thousand	2,562*	3,762**
Operating result, %	2.6*	3.7**
Result after financial items, EUR thousand	204	1,568
Net result, EUR thousand	204	1,547
Basic earnings per share, EUR	0.02	0.16
Diluted earnings per share, EUR	0.02	0.16

^* The operating result for 2024 includes a non-recurring non-operational income of EUR 2.9 million from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

** The operating result for 2023 includes a non-recurring income of EUR 4.2 million from the reversal of an impairment loss related to production machinery and equipment in the foundry business.

The Group's EBITDA increased from the previous year, amounting to EUR 7.9 million (EUR 5.3 million). The EBITDA for the financial year was burdened by lower sales volumes than in the previous year and temporarily lower productivity and internal quality challenges caused by volume products that went into serial production, strikes in the financial year, and the index development of electricity and main raw materials. As an item with a positive impact, the EBITDA included a non-recurring gain of EUR 2.9 million recognised in non-operating activities in the last quarter of 2024 from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre. As a result of this, the EBITDA was higher than in the previous year. Therefore the adjusted EBITDA for the financial year was EUR 4.9 million (EUR 5.3 million).

The Group's operating result decreased from the previous year, amounting to EUR 2.6 million (EUR 3.8 million). The operating result included the nonrecurring gain from the transaction mentioned in the previous paragraph. The reversal of an impairment loss of EUR 4.2 million related to machinery and equipment in the foundry business had a positive impact on the previous year's operating result. In its assessment under IFRS in the third quarter of 2023, Componenta noted an improvement in the long-term profit expectations of the foundry business, as a result of which a nonrecurring gain was recognised in the "Depreciation and impairment" item in the income statement.

Board of Directors' report

Consolidated financial statements

Parent company financial statements

The Group's net financial items totalled EUR -2.4 million (EUR -2.2 million). The change in net financial items was the result of an increase in interest expenses, which was caused by a new working capital loan of EUR 2.0 million drawn down during the financial year and credit facilities in use during the financial year. The Group's result after financial items was EUR 0.2 million (EUR 1.6 million). Taxes totalled EUR 0.0 million (0.0 million) for the financial year. The Group's profit for the financial year was EUR 0.2 million (EUR 1.5 million). Basic earnings per share were EUR 0.02 (EUR 0.16) for the financial year. Diluted earnings per share were EUR 0.02 (EUR 0.16) for the financial year.

Agreement with the Defence Forces

On 31 May 2024, Componenta announced that the Minister of Defence had approved the proposal of the Ministry of Defence, supported by the Finance Committee of the Parliament of Finland, to acquire 120 mm mortar shell-tail assemblies for the Defence Forces during 2025–2028. The total value of the transaction is around EUR 50 million, including an option worth around EUR 9 million for 2028. The exercise of the option was confirmed in the last quarter of the year.

The acquisition of the Kalajoki plant and the Sepänkylä machining and service centre

On 22 July 2024, Componenta announced that it had signed an agreement on the acquisition of the business operations of the Kalajoki plant and the

Sepänkylä machining and service centre, including their inventories, fixed assets and real estate, from Fortaco Group for around EUR 2.8 million. The net sales of the acquired business operations were around EUR 9.6 million in 2023. The transaction was completed on 1 October 2024. The business operations became part of Componenta on the closing date of the transaction. Componenta Manufacturing Oy will buy the properties used by the Kalajoki and Sepänkylä businesses from Fortaco Oy within one year, by 1 October 2025. Until then, Componenta is paying rent to Fortaco for the properties in Kalajoki and Sepänkylä. The paid rent will be deducted from the purchase price of the real estate (EUR 1 million). Componenta is financing the transactions with its internal financing and the financing limits at its disposal.

The Kalajoki and Sepänkylä plants carry out welding, machining, surface treatment and installation of demanding steel parts and components. The acquired operations have a total of around 60 employees. The transaction has strengthened Componenta's service offering and capability for machine and equipment manufacturers. The extensive expertise gained through the acquisition has expanded the company's production portfolio and complemented its overall offering as a contract manufacturer for heavier production. Following the transaction, Componenta will also be able to make more extensive use of internal supply chains in terms of sheet metal cutting deliveries and heavy machining, for example. Componenta and the business operations of the Kalajoki plant and

the Sepänkylä machining and service centre had common customers even before the acquisition.

Balance sheet, financing and cash flow

Cash flow and balance sheet	2024	2023
Cash flow from operating activities, EUR thousand	8,232	1,126
Net interest bearing debt, EUR thousand	5,472	9,097
Net gearing, %	21.2	35.6
Equity ratio, %	41.3	45.0
Return on equity, %	0.8	6.2
Return on investment, %	6.6	9.8

At the end of the financial year, the company's invested capital stood at EUR 40.0 million (EUR 39.9 million), and the return on capital employed was 6.6% (9.8%). The return on equity was 0.8% (6.2%). The Group's equity ratio stood at 41.3% (45.0%) at the end of the financial year. The equity ratio decreased as a result of an increase in non-interestbearing liabilities compared with the previous year. The Group's equity was EUR 25.8 million (EUR 25.5 million). Its net gearing stood at 21.2% (35.6%) at the end of the financial year. The improvement in net gearing was mainly caused by stronger liquidity at the end of the year compared with the previous year. On the other hand, the net gearing ratio was weakened by a working capital loan of EUR 2 million from LocalTapiola and Elo Mutual Pension Insurance Company, agreed in the second quarter of the financial year and drawn in full on 12 April 2024. The loan term is five years. Other loan terms are usual.

Board of Directors' report

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Componenta Group's total liabilities on 31 December 2024 stood at EUR 37.6 million (EUR 31.7 million). Non-current liabilities amounted to EUR 11.7 million (EUR 11.9 million), and current liabilities totalled EUR 25.9 million (EUR 19.8 million). The Group's liabilities included EUR 4.1 million (EUR 3.6 million) in loans from financial institutions. The Group's other debt items included EUR 10.5 million (EUR 7.9 million) in working capital, EUR 10.1 million (EUR 10.9 million) in lease liabilities related to facilities, machinery and equipment, and EUR 12.9 million (EUR 9.3 million) in other liabilities.

At the end of the financial year, the Group's cash in hand and at bank totalled EUR 8.7 million (EUR 5.3 million). The Group's liquidity has remained at a good level since the end of the financial year. At the end of the financial year, Componenta also had EUR 4.0 million (EUR 4.0 million) in unused committed credit facilities valid until September 2025. In addition during the financial year Componenta agreed on a financing arrangement of up to USD 3 million with a US investor MPL. The arrangement is valid from 1 July 2025 to 31 December 2027. Under the financing arrangement, Componenta may, at its sole discretion, raise funds in the form of a loan from MPL in instalments of up to USD 750,000. Against the loan, Componenta will then issue convertible debentures to MPL, with a maturity of three years. The annual interest rate on the convertible debentures is 4%. Componenta may, at any time, redeem convertible debentures from MPL by paying the principal amount and any accrued

interest to MPL. MPL may demand the conversion of a convertible debenture after 18 months have passed from the issue of the convertible debenture. The subscription price per share for each instalment corresponds to 91.5% of the volume-weighted average price of the company's share over five consecutive trading days.

The Group's cash flow from operating activities in the financial year was EUR 8.2 million (EUR 1.1 million). Its cash flow for the financial year increased as a result of an increase in trade payables. In addition, the timing of the payment of certain significant purchases of materials before the balance sheet date of previous financial year had a negative impact on the cash flow for the previous year. At the end of the financial year, the Group's working capital (including inventories and trade receivables, less trade payables) was EUR 5.2 million (EUR 6.5 million).

Personnel

	2024	2023
Personnel expenses, EUR thousand	-31,494	-31,189
Average number of personnel during
the period	614	589
Average number of personnel during
the period, incl. leased personnel	639	631
Number of personnel at period end	681	584
Number of personnel at period end,
incl. leased personnel	689	615

At the end of reporting period, the number of Group employees was 681 (584).

Capital expenditure

EUR thousand	2024	2023
Non-current assets	5,567	2,794
Leases	1,165	1,272
Total	6,732	4,066

The Group's capital expenditure totalled EUR 6.7 million (EUR 4.1 million). The capital expenditure mainly consisted of various production machinery and equipment acquisitions and a business acquisition executed during the financial year. The Group's net cash flow from investing activities was EUR -3.2 million (EUR -2.7 million), which includes the Group's cash flow from capital expenditure in tangible and intangible assets and the payment of the purchase price for the business operations in Kalajoki and Sepänkylä.

Research and development activities

There were no research and development costs, because Componenta performs contract manufacturing operations.

Share capital and shares

The shares of Componenta Corporation are listed on the Nasdaq Helsinki. The average share price during the financial year was EUR 2.75 (EUR 2.67). The lowest price was EUR 2.12 (EUR 2.20), and the highest was EUR 3.55 (EUR 3.25). The quoted price at the end of the financial year was EUR 2.76 (EUR 2.35). At the end of the financial year, the market

Board of Directors' report statement Contents President and CEO's

value of the company's shares was EUR 26.8 million (EUR 22.8 million), and the volume of shares traded during the financial year was 21.9% (20.3 %) of the entire share capital. Componenta Corporation's share capital was EUR 1.0 million (EUR 1.0 million) at the end of the financial year. At the end of the financial year, the total number of the company's shares was 9,712,757 (9,712,757). The company had 7,005 (6,975) shareholders at the end of the financial year.

Shareholders on 31 Dec 2024

Shareholder	Shares	%
1 Joensuun kauppa ja Kone Oy	1,220,940	12.57
2 Etra Capital Oy	940,000	9.68
3 Skandinaviska Enskilda Banken AB*	488,610	5.03
4 Varma Mutual Pension
Insurance Company	416,252	4.29
5 Elo Mutual Pension
Insurance Company	275,000	2.83
6 Nordea Life Assurance Finland Ltd	205,600	2.12
7 Harri Yrjö Oy	182,889	1.88
8 Noveco Oy	140,000	1.44
9 Nikula Jukka-Pekka	113,795	1.17
10 Hilander Seija-Sisko	72,644	0.75
Nominee-registered shares	505,706	5.21
Other shareholders	5,151,321	53.04
Total	9,712,757	100.00

*Nominee-registered shares

Breakdown of share ownership on 31 Dec 2024

Number of shares	Share holders	%	Shares	%
1–100	3,696	52.77	112,808	1.16
101–500	1,811	25.85	479,285	4.94
501–1 000	597	8.52	463,768	4.76
1 001–5 000	686	9.79	1,491,222	15.35
5 001–10 000	105	1.50	720,229	7.42
10 001–50 000	89	1.27	1,734,640	17.86
50 001–100 000	12	0.17	714,419	7.36
100 001–500 000	7	0.10	1,822,146	18.76
500 001–999 999 999	2	0.03	2,174,240	22.39
Total=total issued	7,005	100.00	9,712,757	100.00

Shareholders by sector on 31 Dec 2024 %

Households	49.15
Finnish companies	34.49
General government bodies	7.12
Nominee-registeres shares and other foreign
shareholders	5.47
Financial institutions and insurance companies	3.71
Non-profit institutions	0.06
Total	100.00

Flagging notifications

Componenta did not receive any flagging notifications in 2024.

Resolutions of the Annual General Meeting

Componenta Corporation's Annual General Meeting (AGM) was held in Vantaa on 10 April 2024. The AGM adopted the financial statements and consolidated financial statements for 2023 and discharged the

members of the Board of Directors and the CEO from liability for the financial year from1 January to 31 December 2023. In accordance with the Board of Directors' proposal, the AGM decided that no dividend be paid based on the balance sheet confirmed for the financial year that ended on 31 December 2023.

The AGM decided that the Board of Directors consists of five members. The AGM re-elected Tomas Hedenborg, Anne Koutonen, Harri Suutari and Petteri Walldén as members of the Board. Lars Wrebo was elected as a new member of the Board. The AGM decided that the annual remuneration payable to the Chair of the Board of Directors would be EUR 50,000, and that the annual remuneration payable to other members of the Board would be EUR 30,000, in accordance with the proposal of the Shareholders' Nomination Board. The members of any committees of the Board of Directors will be paid an annual remuneration of EUR 5,000. In addition, Board members who live outside Finland and travel to Finland for a meeting will paid a fee of EUR 1,000 per meeting.

At its organisational meeting after the AGM, the Board of Directors elected Harri Suutari as Chair of the Board and Anne Koutonen as Vice Chair of the Board. The AGM elected the audit firm PricewaterhouseCoopers Oy as the company's auditor, with Ylva Eriksson, Authorised Public Accountant, as the principal auditor. The AGM elected the sustainability audit firm BDO Oy as its sustainability auditor, with sustainability auditor Laura Castrén, APA, as the principal sustainability auditor.

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The AGM authorised the Board of Directors to decide on share issues in one or several instalments so that share issues can be executed by offering new shares or transferring own shares held by the company. The total number of shares to be issued or transferred under the authorisation may not exceed 961,563 shares, which correspond to around 9.9% of all the shares in the company. The new shares may be issued and own shares held by the company may be transferred for consideration or without consideration.

The Board of Directors will decide on all the terms and conditions of the issue of new shares and the transfer of the company's own shares. Based on the authorisation, the Board of Directors may also decide on a share issue in deviation from the preemptive subscription right of the shareholders (directed issue) subject to the conditions mentioned in the Finnish Limited Liability Companies Act. The authorisation also includes the right to decide on the issue of new shares to the company itself without consideration. For example, the Board of Directors may use the authorisation as compensation in acquisitions, to develop capital structure, to broaden the ownership base, to acquire assets related to the company's business operations or to finance or carry out other business transactions, or for other purposes decided by the Board of Directors. However, the authorisation may not be used for the implementation of incentive

programmes for the company's management or key personnel. The authorisation is valid until the end of the next Annual General Meeting, but no longer than until 30 June 2025. For the sake of clarity, it is stated that the authorisation does not revoke the authorisation granted to the Board of Directors at the Annual General Meeting on 13 April 2023 to decide on the issue of shares and special rights entitling their holders to shares for incentive schemes, under which a maximum of 400,000 shares may be issued. However, the authorisation revokes other previous unused authorisations to issue shares.

The AGM decided to amend the Articles of Association by adding a new Article 8 on a sustainability auditor. As a result of the amendment, the numbering of the current Articles 8, 9 and 10 will change accordingly to Articles 9, 10 and 11. The AGM decided that the future Article 11 of the Articles of Association concerning the matters to be discussed at the Annual General Meeting will be supplemented by adding a new sub-item 10 on the election of the sustainability auditor and by adding to sub-item 6 a mention of the fee and the reimbursement criteria for the travel expenses of the auditor and the sustainability auditor.

A stock exchange release about the resolutions of the AGM is available in full on the company's website.

Option rights

On 13 April 2023, Componenta Corporation's Board of Directors decided to start a new option programme for key personnel of Componenta Corporation and its subsidiaries in line with the authorisation granted by the Annual General Meeting on 13 April 2023.

The share subscription price using 2023B option rights is EUR 2.35 per share, which is the volumeweighted average price of the company's share on Nasdaq Helsinki between 22 April and 21 May 2024. The subscription price of shares subscribed for using 2023B option rights will be reduced by the amount of return of share capital per share and the amount of dividends distributed by the company and return of equity distributed from the unrestricted equity reserve per share. A maximum of 133,326 new shares in the company or shares held by the company can be subscribed for using 2023B option rights. The subscription period for shares to be subscribed for using 2023B option rights will run from 1 June 2027 to 31 May 2029. The theoretical market value of a 2023B option right is around EUR 1.0532. The total theoretical market value of the option rights is around EUR 140,418. The theoretical market value of option rights has been calculated applying the Black-Scholes model under the following assumptions: share price EUR 2.36; share subscription price EUR 2.35 under an

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Parent company financial statements

option right; risk-free interest rate 2.89%; option right validity around 5 years; and volatility 46.92%.

In addition, at the end of the review period, Componenta had two previously decided option programmes: 2023A and 2018C. There were a total of 133,348 option rights under the 2023A programme, of which none were held by the company. The share subscription price under the 2023A programme is EUR 3.00, and each option entitles its holder to subscribe for one Componenta share. The subscription period for shares under the 2023A programme runs from 1 June 2026 to 31 May 2028. There were a total of 76,462 option rights under the 2018C programme, of which 11,100 were held by the company. The share subscription price under the 2018C programme is EUR 3.03, and each option entitles its holder to subscribe for two Componenta shares. The subscription period for shares under the 2018C programme runs from 1 December 2023 to 30 November 2025.

The 2018B option programme ended in November 2024. In the financial year, no option rights under the current option programmes were used to subscribe for shares. The target group of all the option programmes consists of around 15 key people, including the members of the Group's Corporate Executive Team.

Board of Directors and management

Until 10 April 2024, Componenta's Board of Directors consisted of Harri Suutari (Chair), Anne Koutonen (Vice Chair), Tomas Hedenborg and Petteri Walldén. From 10 April 2024, Componenta's Board of Directors consisted of Harri Suutari (Chair), Anne Koutonen (Vice Chair), Tomas Hedenborg, Petteri Walldén and Lars Wrebo. The Board members' term of office ends at the close of the next AGM. Throughout the financial year, the Group's Corporate Executive Team consisted of the following members: Sami Sivuranta, President and CEO; Marko Karppinen, CFO; Pasi Mäkinen, COO; and Hanna Seppänen, General Counsel.

Risks and businessrelated uncertainties

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

The availability of certain raw materials such as recycled steel, pig iron, structural steel, aluminium and energy at competitive prices, as well as the uninterrupted supply of energy, is essential for the Group's business operations. Market prices for electricity remained at a reasonable level on average during the review period, although the price variation is very high on a daily and hourly basis.

Because of increased geopolitical tensions, the availability of raw materials and other materials may involve uncertainties in Componenta's operational activities. In addition, global challenges with the availability of certain components for customers may lead to production disruptions in our end-customers' plants and thereby affect Componenta's sales volumes in the short term. However, from Componenta's point of view, the situation is stable at the moment.

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

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Componenta has no significant and immediate risk concentrations related to Russia, Ukraine or the Middle East among its customers or suppliers of goods. Componenta has no operations of its own in Russia, Ukraine or the Middle East. The Russian war of aggression has had an impact on the general price development and availability of raw materials such as structural steel and pig iron, and on the development of energy prices. The war has had an indirect impact on the supply chains of Componenta's manufacturers of steel materials and wholesalers through the price development and availability of iron ore and coal, for example. The continuation of the wars and an unfavourable development of the geopolitical situation can continue to have a negative impact on the financial market, sales volumes, the availability and price development of raw materials and energy and the availability of foreign labour, which increases uncertainty in terms of forecasts. Any increases in import duties may indirectly affect Componenta's business operations through customers. Componenta delivers hardly any components directly to the United States.

The cost risk associated with raw materials is mainly managed through index-based price agreements, based on which the sales prices of products are updated in response to changes in the prices of raw materials for the next quarter. An increase in raw material prices may tie up more cash than expected into working capital. In terms of commercial risks,

future volumes may be weakened by customers switching to cheaper alternatives due to price competition.

Componenta's business operations depend on the reliability of production plants, supply and delivery channels and the related processes and systems. Componenta is also closely monitoring developments in the labour market. The quality, accuracy and availability of information are extremely important, as information technology plays a significant role in the operations of Componenta and its suppliers and customers. If materialised, IT and cybersecurity risks may expose Componenta to disruptions and interruptions in operations and the loss or distortion of data, which may lead to interruptions in product availability. Componenta pays close attention to cybersecurity risks and monitors its customers' situations and notifications.

Componenta continuously monitors the liquidity and counterparty risk. The financing of the company's business operations is based on income financing, factoring arrangements, committed loans from financial institutions, credit facilities in force until September 2025 and the convertible bond arrangement established in May 2024. Any termination or non-renewal of factoring arrangements or credit facilities can create uncertainties for Componenta's liquidity. The company estimates that the Group will be able to

obtain debt financing from the market also in the future, if necessary. In addition, if materialised, the counterparty risk may cause uncertainties in terms of Componenta's liquidity. The Group's liquidity was at a good level at the end of the financial year. At the end of the review period, Componenta had EUR 4.0 million in unused committed credit facilities and a convertible bond arrangement of up to USD 3.0 million agreed with MPL, a US investor, for 1 July 2025 to 31 December 2027.

Componenta's credit facilities and working capital loans include the following financial covenants: net interest-bearing debt / rolling 12-month EBITDA no higher than 3.0, and an equity ratio of at least 25%. In accordance with the agreed terms, the covenants are reviewed semi-annually on 30 June and 31 December, and are valid for as long as the liability or amount related to the loan agreements is outstanding or undrawn. As a result of a low rolling 12-month EBITDA, the first covenant was not met on 30 June 2024, and the company received waivers from the financiers during June 2024 for the situation on 30 June. On the balance sheet date on 31 December 2024, Componenta's financial situation met all the covenants included in the loan agreements. Unfavourable EBITDA development over a rolling 12-month period can cause a covenant breach.

Sustainability statement Contents President and CEO's

Notes to the consolidated financial statements

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Alternative performance measure

Componenta reports adjusted EBITDA as a new alternative performance measure. Adjusted EBITDA reflects genuine operational profitability, excluding non-recurring items, as a basis for performance management and improves the comparability of reporting periods. Adjusted EBITDA does not include income or expenses generated as a result of corporate or structural arrangements. Componenta reports adjusted EBITDA for 2024 as a result of one-off transaction actualised during the financial year. For the comparison year 2023, adjusted EBITDA is equal to the EBITDA for the period. The reconciliation calculation of adjusted EBITDA can be found in "Key figures" section of the annual report.

Profit guidance for 2025

Componenta expects the Group's net sales and adjusted EBITDA to improve from the previous year. The Group's net sales in 2024 were EUR 97.1 million, and its adjusted EBITDA was EUR 4.9 million.

Development of customers' sales volumes, poor availability of raw materials, increases in the prices of raw materials and electricity, and the general economic situation, labour market situation and competitive climate may affect business outlooks. The development of sales and profitability involves uncertainties because of increased geopolitical tensions. Increasing customs duties may have a negative impact on Componenta's operations indirectly through customers. An unfavourable development of the geopolitical situation may also have a negative impact on the financial market, sales volumes, the availability and price

development of raw materials and electricity, and the availability of foreign labour, all of which increase forecasting uncertainty.

Dividend proposal

The Group's profit for the financial year was EUR 0.2 million (EUR 1.5 million). On 31 December 2024, the parent company's distributable funds totalled EUR 18.4 million (EUR 17.1 million). Based on the balance sheet to be confirmed for the financial year that ended on 31 December 2024, the Board of Directors proposes that no dividend be paid.

Annual General Meeting

Componenta Corporation's Annual General Meeting will be held on Wednesday 23 April 2025 in Vantaa, Finland. The notice of the meeting will be published as a separate stock exchange release.

Notes to the consolidated financial statements

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Sustainability statement 2024

General information

General basis for preparation of the sustainability statement

This Sustainability Statement was prepared as a consolidated sustainability statement in accordance with the Corporate Sustainability Reporting Directive (CSRD) and covers the Componenta Group as a whole to the same extent as the consolidated financial statements. The numerical data provided in the sustainability statement are consolidated figures and cover the whole of the Componenta Group, unless otherwise specifically stated. The reported figures and other information include the business acquired from Fortaco Group on 1 October 2024 for the period from 1 October 2024 to 31 December 2024. All Componenta's applicable group-level policies apply to the business acquired from Fortaco Group from the date of acquisition and the acquisition does not affect the existing policies. This sustainability statement addresses Componenta's upstream and downstream value chain to the extent necessary to describe Componenta's material impacts, risks and opportunities associated with its value chain.

The option to exclude information related to intellectual property, know-how or the results of innovation has not been applied in the preparation of this sustainability statement. In addition, information about impending developments or matters in the course of negotiation has not been omitted from the report.

In terms of material topics, only the metrics identified as material to Componenta are reported in the topical sections of this sustainability statement. If a metric is not considered material for Componenta based on the results of the double materiality assessment, the metric is not reported. The business acquired from Fortaco Group is included in the reported metrics and actions, where applicable, from 1 October 2024 to 31 December 2024, unless otherwise specifically stated.

Governance

The role of the administrative, management and supervisory bodies

Componenta's Board of Directors serves as an administrative and supervisory body in terms of sustainability matters. The Annual General Meeting elects the Board of Directors of Componenta every year. According to the Company's Articles of Association, the Board of Directors has three to seven members. In 2024, the Board of Directors had five members, of whom 20% were women and 80% were men. The members of the Board of Directors do not participate in the company's operational

management. There is no employee representation on the Board of Directors. The members of the Board of Directors possess wide-ranging expertise in the business operations of companies with international operations and the development of these, are experienced in the company's field of operation, and complement each other's knowledge of the company's different business areas. All (100%) members of the Board of Directors were independent of both the company and its significant shareholders. The independence of the Board of Directors is assessed in accordance with recommendation 10 of the 2020 Corporate Governance Code for listed companies maintained by the Securities Market Association. The Board of Directors has not established committees to address sustainability matters.

The Board of Directors' rules of procedure take into account the Board of Directors' responsibilities in terms of the impacts, risks and opportunities related to sustainability matters. In terms of sustainability, the Board of Directors' duties include:

Monitoring and control of the sustainability reporting process
Approval of the sustainability reporting assurance plan
Approval of the budget for sustainability reporting assurance, as well as new assignments that exceed preset limits

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If necessary, meetings with the sustainability auditor and review of all key reports provided by the sustainability auditor
Monitoring and assessment of the sustainability reporting system
Assessment of the independence of the sustainability auditor
Monitoring the company's sustainability reporting assurance process, if necessary
Preparation of the selection of the sustainability auditor

The Board of Directors sets the company's longterm and top-level goals related to sustainability issues. The Corporate Executive Team approves the short-term Group-level targets and specified targets. Both the Board of Directors and the Corporate Executive Team regularly monitor the achievement of sustainability-related targets.

Componenta's Corporate Executive Team consists of four people, of whom 25% are women and 75% are men. The President and CEO is Chair of the company's Corporate Executive Team. In addition to the President and CEO, the Corporate Executive Team includes the CFO, the COO and the Director responsible for legal affairs and sustainability matters. The company's Corporate Executive Team assists the President and CEO in the management and development of the company. There is no employee representation in the Corporate Executive Team. The members of the Corporate Executive Team have a diverse range of expertise in the activities of internationally operating companies, experience in the company's line of business,

and complement each other's knowledge of the company's different business areas.

The company's President and CEO is responsible for ensuring that the company's sustainability matters and sustainability reporting are organised in a lawful and reliable manner. Responsibility for sustainability matters, including sustainability reporting, lies with the Director responsible for legal affairs and sustainability matters, who reports to the President and CEO. The President and CEO reports on sustainability matters to the Board of Directors. The Corporate Executive Team does not have written rules of procedure. Sustainability matters are discussed in the Corporate Executive Team in accordance with the annual action plans. The company's general risk management process is used, where applicable, to manage the impacts, risks and opportunities related to sustainability matters.

The President and CEO is responsible for ensuring that the company's sustainability reporting is legal and reliably organised, which includes ensuring the availability of appropriate competence and expertise. Sustainability matters, including sustainability reporting, have been assigned to the Director responsible for legal affairs and sustainability matters within the Corporate Executive Team and at the Group level. The company has a sustainability expert, who reports to the Director responsible for legal affairs and sustainability matters. The sustainability expert has expertise in the company's material impacts, risks and opportunities, environmental sustainability matters in particular, and complements the company's other expertise

in sustainability matters. The company has also trained its personnel and used external experts in sustainability matters to increase understanding of sustainability matters in the organisation. The Board of Directors and the Corporate Executive Team have access to the sustainability expertise they need through Componenta's internal and/or external specialists.

Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies

The Corporate Executive Team discusses material impacts, risks and opportunities related to sustainability matters at least in the context of the review of the results of the annual double materiality assessment. As a rule, the Director responsible for legal affairs and sustainability matters presents matters related to sustainability matters in the Corporate Executive Team. The Corporate Executive Team also receives information about sustainability matters from persons in charge of and experts in different subject areas in relation to individual impacts, risks and opportunities. The Corporate Executive Team approves the short-term Grouplevel targets and specified targets related to sustainability matters. The Corporate Executive Team monitors the achievement of sustainabilityrelated targets regularly. As a rule, the President and CEO or the Director responsible for legal affairs and sustainability matters presents matters related to sustainability matters to the Board of Directors. However, in relation to individual impacts, risks and opportunities, persons in charge of or

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experts in different subject areas may present the matter to the Board of Directors. During the reporting period, the Corporate Executive Team has addressed all impacts, risks and opportunities identified as material in Componenta's double materiality assessment, with the exception of waste and pollution of air. During the reporting period, the Board of Directors has addressed the following topics identified as material for Componenta: energy consumption, climate change mitigation, resource outflows related to products and services, availability and price of raw materials and components, cybersecurity, and increasing environmental legislation.

The impacts, risks and opportunities related to sustainability matters are incorporated into Componenta's strategy in connection with strategy updates in the strategy process. The Board of Directors and the Corporate Executive Team take sustainability matters into account in their decisionmaking. When making decisions, options have to be weighed in terms of various factors.

Integration of sustainability-related performance in incentive schemes

The company does not have incentive schemes related to the remuneration of the Board of Directors. In the company, the remuneration of the Corporate Executive Team is not linked to sustainability matters. Sustainability matters were taken into account in the remuneration policy of the governing bodies adopted at the 2024 Annual General Meeting in terms of the President and CEO's short-term and long-term incentive schemes so that remuneration can also be based on sustainability matters in the future. Similarly, sustainability matters can also be taken into account in the shortand long-term incentive schemes of the other members of the Corporate Executive Team. Climate considerations are currently not taken into account in the long- and short-term incentive schemes for the Corporate Executive Team. The Board of Directors decides on the terms and conditions of the company's long-term and short-term incentive schemes.

Risk management and internal controls over sustainability reporting

For the time being, risk management in Componenta's sustainability reporting process is a process separate from the financial reporting risk management system due to the information being partly different and collected from different sources. The risk management model consists of identifying the most significant risks related to the reporting process and defining and implementing appropriate internal control methods (controls). Risks were identified through discussions in a working group consisting of sustainability, legal and financial management experts. A specific risk prioritisation method was not used, but the risk assessment focused on the risks deemed to be qualitatively the most significant.

The most significant risk identified in terms of Componenta's sustainability reporting process includes errors in the collection and reporting of numerical data. Componenta has determined internal controls to mitigate this risk. Internal controls consist of, for example, review-type controls, in which the correctness of the collected data is always assessed in at least two different phases of the reporting process, and the four-eye principle, which is used to ensure the correctness of computational data. Componenta seeks to use as much data collected directly from the systems as possible in reporting, which contributes to reducing the risk of reporting incorrect information. In addition, the resources and expertise required for the sustainability reporting process and its monitoring are ensured internally, and Componenta uses external specialists as necessary. Any findings made in connection with internal control that materially affect the reporting process are reported to the Corporate Executive Team and the Board of Directors at least once a year.

Strategy

Strategy, business model and value chain

Componenta is a contract manufacturer with a broad offering. The company does not have its own products, but the products manufactured by Componenta are manufactured in accordance with customers' specifications. Componenta's business model as well as Componenta's most significant product categories and market areas in terms of net sales are presented in Note 1 to the consolidated financial statements. During 2024, in addition to machine building and agricultural machinery, the defence equipment industry and energy industry became significant customer industries for

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Componenta (> 10% of the Group's total net sales). The business operations acquired from Fortaco Group in 2024 significantly expand Componenta's product and service selection by bringing large, welded structures into Componenta's product portfolio.

The benefits offered by Componenta to its customers, investors and other stakeholders are described on page 22. The number of employees is presented on page 65.

Componenta's most significant production inputs are personnel, financial capital and assets, raw materials and the subcontracting network, and energy. Componenta's HR and QEHS functions, financial management and procurement develop the production inputs described above and secure their availability in accordance with their own operating principles. Componenta's raw material and supply chains are global, but the majority of Componenta's tier 1 suppliers are Finnish and European companies. Componenta's key suppliers are suppliers of raw materials and energy, and a large part of its customers are globally operating machinery and equipment manufacturers with significant assembly operations in Finland. Transportation companies that transport raw materials to Componenta and Componenta's products to customers are also a significant part of Componenta's value chain. In Componenta's value chain, value is mainly generated in Componenta's customers' production processes, when customers use the components manufactured and/or machined by Componenta as components

in their own products. Componenta's ambition is to develop long-lasting and interactive relationships with customers and suppliers. The range of end users of equipment containing components manufactured by Componenta is diverse due to Componenta's several customer industries.

For Componenta's strategy period 2024–2026, five focus areas were selected: in-depth customer knowledge, sustainability, operative reform, personnel and inorganic growth. Of the focus areas of Componenta's strategy, sustainability and personnel are directly related to Componenta's material sustainability topics. The other focus areas of the strategy indirectly affect Componenta's material sustainability topics through an increasing number of personnel and the development of production processes, for example. Componenta is looking at automation and robotics, among other fields, for a solution for the development of competitiveness and the growing labour shortage in its sector as part of its strategy. Componenta did not have long-term sustainability targets for product and service groups, customer categories, geographical areas or relationships with stakeholders. Sustainability targets are set annually, such as increasing the share of recycled production material in the foundry business, which specifically responds to customers' wishes to use recycled raw materials in Componenta's products.

Interests and views of stakeholders

Componenta's key stakeholders consist of personnel, customers, suppliers (including contractors and

subcontractors), shareholders, financiers, the authorities and local communities related to production units. Componenta carries out regular discussions with all its key stakeholders as part of its normal business operations. Operationally significant matters that emerge in stakeholder interaction are brought to the attention of the Corporate Executive Team, and matters that are material to the Board of Directors' work are brought to the attention of the Board of Directors. In addition, matters raised in stakeholder interaction are discussed as part of daily operational management.

Stakeholder views collected through stakeholder interaction are discussed as part of the strategy process and are taken into account in strategy reforms. Sustainability was defined as a new focus area for the 2024–2026 strategy period. This focus area includes, for example, setting long-term climate targets during 2025 and reducing greenhouse gas emissions. In addition, the company continuously develops occupational safety, well-being at work and employees' competence, as well as diversity, non-discrimination and equality. In addition to the above, in its current strategy period, Componenta aims to increase operational reliability and service capability, to offer even higher-quality products to its customers, and to generate value growth for its investors. Actions related to the implementation of the strategy are not considered to change Componenta's relationships with its stakeholders, but have been developed to meet stakeholders' needs and views. Componenta's engagement with stakeholders is summarised in the following table.

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Stakeholder	Examples of means of stakeholder engagement	Examples of targets for stakeholder engagement	Examples of the benefits Componenta provides or seeks to provide to its stakeholders
Personnel	● Daily management ● Annual employee surveys ● Annual performance reviews ● Occupational health and safety committees ● Dialogue with employee representatives ● Occupational safety observations made by personnel ● Regular reviews by the President and CEO ● Monthly unit reviews ● Whistleblowing channel maintained by a third party	● Developing a healthy and safe working environment and occupational safety ● Consultation and inclusion of personnel ● Increasing the competence and awareness of personnel ● Transparent and reciprocal communication ● Defining responsibilities and roles ● Quality management	● Stable employment ● Fair and competitive pay ● Career development opportunities ● Personal competence development ● Employee benefits ● Equal and diverse workplace community
Customers	● Daily interactions ● Factory visits ● Product development cooperation ● Trade fairs, seminars etc.	● Understanding customers' needs and expectations and developing the company's own operations ● Ensuring customers' competitiveness ● Ensuring the profitability of Componenta's operations ● Monitoring and taking customer satisfaction and feedback into account ● Transparent and reciprocal communication	● Wide range of services in accordance with customer specifications ● A distraction-free supply chain and the ability to react quickly and flexibly ● Easy and seamless collaboration ● Rapid productisation of new components ● Technical support and consultation in manufacturing
Suppliers (including contractors and subcontractors)	● Daily interactions ● Cooperation meetings ● Supplier audits ● Seminars ● Development projects	● Assessment of the security of supply and informed decision making in supplier selection ● Assessment of suppliers' operations and performance ● Definition and documentation of contracts ● Promoting customer requirements and their implementation, including sustainability aspects ● Commitment of suppliers to comply with Componenta's relevant policies, including sustainability requirements ● Risk assessment and safety review	● Business revenue for suppliers ● Serving as a customer reference, especially for small and medium-sized suppliers ● Development of suppliers' own sustainability work
Shareholders	● Annual General Meeting ● Interim and annual reviews ● Stock exchange releases ● Investor section on the website ● Investor meetings	● Understanding shareholders' needs and expectations ● Open and interactive communication ● Sharing up-to-date and reliable information	● Dividends ● Increasing the value of the company
Financiers	● ESG and credit ratings ● Interim and annual reviews ● Financial negotiations ● Regular interactions	● Understanding financiers' needs and expectations ● Availability of funding ● Open and transparent communication	● Revenue for financiers
The authorities	● Communication related to permits ● Statutory inspections ● Statutory notifications to the authorities ● Meetings with the authorities	● Ensuring that the necessary permits and other documentation are up to date ● Applying for new permits and submitting notifications ● Provision of information to be reported in accordance with environmental permits ● Preparing for unexpected situations ● Fulfilment of the employer's official obligations	● Reliable information for the operations of the authorities
Local communities related to production units	● Direct contact details of the units on the website ● Whistleblowing channel maintained by a third party ● Information for the public in the event of a major accident (Karkkila foundry) ● Public meetings and consultations in the context of permit matters	● Hearing and responding to community concerns and feedback ● Communication with communities in connection with permit processes, for example	● Tax revenue ● Locally important employer ● Business revenue for local suppliers ● Cooperation with educational institutions

Sustainability

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Impact, risk and opportunity management

Description of the process to identify and assess material impacts, risks and opportunities

Componenta's first double materiality assessment was carried out in accordance with the Corporate Sustainability Reporting Directive (CSRD) as part of the preparation for 2024 sustainability reporting. The results of the assessment form the basis for Componenta's sustainability statement. The business operations acquired from Fortaco Group towards the end of 2024 do not affect the results of the double materiality assessment, as the acquired business is similar to the other businesses within the Componenta Group. The need to update the double materiality assessment is reviewed annually. The need for the double materiality assessment update will be next reviewed in 2025, when the work to prepare the next sustainability statement begins, and the actual double materiality assessment will be carried out alongside Componenta's general risk assessment during 2025.

Method of implementation of the double materiality assessment

Componenta's first double materiality assessment was carried out in cooperation with an external expert party. Prior to the start of the actual work, material background information was provided to the external expert party for the preparation of the double materiality assessment. Based on

the background information, the external expert party identified and prepared the topics, subtopics and sub-sub-topics related to sustainability matters to be reviewed as part of the double materiality assessment work. The actual double materiality assessment work was carried out in guided workshops, where the previously identified potentially material topics, sub-topics and subsub-topics were reviewed. The workshops were attended by Componenta's experts specialising in the topics to be discussed. In the workshops, the topics were discussed and the participants presented their views and arguments on the materiality of the topics. In addition, entity-specific topics material for Componenta were identified in the workshops.

statement

In the double materiality assessment, the materiality of the sustainability matters was determined through the scores given to them. Each considered, potentially material topic, subtopic, sub-sub-topic, and entity-specific topic was scored separately. Preliminary scores were determined through discussions by a consensus decision in workshops and finalised scores were validated and, if necessary, also updated based on discussion. All scores were given on a scale of 1 to 5, with 1 representing the lowest level and 5 the highest level (most likely, broadest, most severe, etc.). Actual impacts were always given the highest possible likelihood score (5), in order to enable direct comparison of actual and potential impacts.

Internal control of the decision-making related to the double materiality assessment and the process itself was based, in particular, on carrying out the analysis and reviewing the results extensively in the company. The company's Corporate Executive Team and its specialists, as well as business representatives, participated in the analysis work. In addition, the topics identified as material were presented to and approved by the company's Board of Directors.

Impact assessment

The materiality of the negative impacts was assessed based on their severity and likelihood, with severity determined by the sum of three components. The components of severity were scale, scope and irremediable character. The scores for scale, scope and irremediable character of the impact each corresponded to one-third (factor 0.33) of the overall severity score, and the overall severity score was obtained by adding these together.

The materiality of the positive impacts was assessed based on the scale and scope of the impacts (together: significance) as well as the likelihood. Similarly to the negative impacts, in terms of the positive impacts, the scale and scope scores each corresponded to half (factor 0.5) of the total score for significance.

The total score of the impacts was determined as the sum of the scores of severity or significance and likelihood (maximum score 10).

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Assessment of risks and opportunities

For risks and opportunities, the overall score was simply defined as the sum of the financial impact magnitude and likelyhood scores without weightings. In scoring the magnitude of the financial impact, Componenta's existing financial risk management thresholds were applied on a five-degree scale (1–5), for which specific eurodenominated thresholds were designated to support the assessment. In the double materiality assessment, the assessment of risks and opportunities was carried out after the impact assessment, which allowed the identified impacts and dependencies to be taken into account in the assessment of risks and opportunities.

Sustainability-related risks are classified in one of four categories in the company's risk model defined in the company's risk management policy, and thus are also taken into account in the assessment of individual risks and opportunities in the company's overall risk assessment. All four categories of the risk model are treated in the same way, and the identified risks are reacted to in the same way regardless of the category. Sustainability matters are considered, for example, in the environmental risks and strategic risks classes in the risk assessment tool used by the company.

Componenta's first double materiality assessment was carried out separately from the company's general annual risk assessment. However, the limit values used in the general risk assessment were applied in the assessment of risks and opportunities. In the future, the double materiality assessment will be carried out alongside the risk assessment, so that the findings and results of the general risk assessment will be used directly as input parameters for the double materiality assessment and, on the other hand, the impacts, risks and opportunities identified in the double materiality assessment will also be taken into account in the general risk assessment. In addition to risk assessment, the assessment of opportunities is part of Componenta's overall risk management process. In addition, Componenta's operational management is closely involved in the preparation of the double materiality assessment, and the final results are at least communicated to both the Corporate Executive Team and the Board of Directors, which makes the process of identifying, assessing and managing opportunities an integral part of the company's management processes, as well as the general risk assessment.

Materiality thresholds

The topics material for Componenta were defined based on the scores obtained by the assessed topics. All assessed positive and negative impacts, risks and opportunities were ranked in their respective categories in the order of importance determined by the scores, allowing their materiality to be compared within the category and identifying the most material impacts, risks and opportunities. Any impact (positive and negative) with a severity or significance score of 3 or above and a sum of severity/ significance and likelihood exceeding 5 was defined as a material impact for Componenta. All risks and opportunities with a financial impact magnitude

score above 2 and an overall magnitude and likelihood score above 4 were defined as material risks or opportunities for Componenta. In defining the materiality thresholds, the experience and expertise of an external expert who assisted in the preparation of the double materiality assessment was used.

Consultation with stakeholders

In connection with Componenta's double materiality assessment, no separate stakeholder analysis was carried out, but the materiality assessment was based on existing information about Componenta's stakeholders; discussions with stakeholders are part of Componenta's normal business due diligence processes. In connection with the materiality assessment, stakeholder surveys were carried out for own employees, customers, suppliers and financiers, whose answers were in line with the information already available to Componenta about the views of these stakeholders. The double materiality assessment took into account the views of stakeholders, where applicable, depending on the topic to be analysed. In connection with the assessment work, no statements were requested from external experts.

Coverage and assumptions of the double materiality assessment

The double materiality assessment covered the entire value chain of Componenta. Due to the extensive value chain, the assessment focused especially on the most significant tier 1 suppliers in terms of the upstream value chain. Since

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Componenta is a contract manufacturer and the components manufactured by Componenta for its customers are used for a wide variety of purposes depending on the customer, it is not possible to fully assess Componenta's downstream value chain in connection with the double materiality assessment. The double materiality assessment considered Componenta's downstream value chain at a general level instead of assessing the impacts, risks and opportunities related to certain customers or the use of certain end products. Due to Componenta's own operations and the geographical locations of the tier 1 suppliers and customer companies, impacts, risks and opportunities were assessed mainly in Finland and Europe (excluding global climate impacts).

Except for stakeholder surveys, no new information was collected for the double materiality assessment to support the work, but the assessment of impacts, risks and opportunities was based on existing information that Componenta collects as part of its normal business operations (e.g. the results of monitoring in accordance with the environmental permits of the forge and foundries, information collected through supplier audits about suppliers, as well as customers and applications of components manufactured by Componenta). The most significant assumptions in the assessment work were related to the environmental impacts of the units. The local environmental impacts of Componenta Manufacturing Oy's units were assumed to be low due to the production methods used, and to the extent that certain impacts have

only been observed at the Karkkila foundry, the environmental impacts of the Pori and Karkkila foundries were assumed to be similar, while the impacts of Pori were assumed to be lower than those of Karkkila as a result of the smaller production volumes in Pori.

Material sustainability topics identified through the double materiality assessment and topics below the materiality threshold

The double materiality assessment identified subtopics related to climate change (ESRS E1), pollution (pollution of air, ESRS E2), resource use and the circular economy (ESRS E5), own workforce (ESRS S1) and business conduct (ESRS G1) as material topics for Componenta, as well as entity-specific topics on the availability and price of raw materials and components, cybersecurity, and increasing environmental legislation. A more detailed description of the materiality assessment process for climate change, pollution, resource use and the circular economy and business conduct is provided on pages 45 (climate), 51 (pollution), 54 (resource use and the circular economy) and 68 (business conduct). Impacts, risks and opportunities related to water and marine resources (ESRS E3), biodiversity and ecosystems (ESRS E4), workers in the value chain (ESRS S2), affected communities (ESRS S3) and consumers and end-users (ESRS S4) remained below the materiality threshold. The following sections describe how the materiality of water and marine resources, as well as biodiversity and ecosystems, for Componenta was assessed as part of the double materiality assessment.

As part of the double materiality assessment, the actual and potential impacts of Componenta on biodiversity and ecosystems, as well as the associated risks and opportunities for Componenta, were assessed. Due to the extensive nature of Componenta's value chain, the assessment focused particularly on Componenta's own operations and the value chain in general. The assessment used data on emissions from production units and Componenta's existing data on the value chain. Potential impacts were assumed to be local and limited to the immediate surroundings of the production units.

The double materiality assessment did not identify dependencies on biodiversity and ecosystems related to Componenta's core operations, nor were dependencies identified for Componenta's tier 1 suppliers. Componenta uses mainly wood-based materials for the packaging of the components it manufactures. In terms of the availability of these materials, Componenta is dependent on ecosystem services. However, Componenta mainly uses recycled, and to a lesser extent new, wooden pallets and collars as packaging materials; therefore its dependence on the availability of timber is not significant. In Componenta's downstream value chain, there are local dependencies on ecosystems (agricultural and forest machinery acquired and used by Componenta's customers' customers). Componenta does not have visibility into where and under what conditions its customers' products are used, so it was not possible to examine individual ecosystems and the related ecosystem

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

services in connection with the double materiality assessment. Since the components manufactured for agricultural and forest machinery represent only part of Componenta's net sales, the dependencies in the downstream value chain are not estimated to be material for Componenta's business operations. Transition risks, physical risks and opportunities, or systemic risks related to biodiversity and ecosystems were not specifically assessed in the context of the double materiality assessment, as these were not assessed as material for Componenta due to minor dependencies and impacts.

Componenta does not have production units in biodiversity-sensitive areas. The property of the Karkkila foundry is bordered to the east by the Karkki forest conservation area (YSA262395, protected in 2023), and the Pumminpuisto conservation area (YSA207155) is located at a distance of around 250 metres from the boundary of the property. In addition, a conservation area is located around 20 metres from the Karperöntie site in Sepänkylä (part of the Kalajoki unit). A total of four conservation areas are located at a distance of 170–250 metres from the Yritystie production unit in Jyväskylä, the Ampumaradantie production unit in Leppävesi, the Satamatie production unit in Kalajoki and the closed landfill in Karhunpäänsuo in Karkkila. At the end of 2024, there were no registered protected areas in the vicinity of Componenta's other production units.

Componenta participates in air quality monitoring using bioindicators in Uusimaa. The Karkki forest conservation area is located, at its closest point,

slightly more than 100 metres from the production buildings of the Karkkila foundry. However, so far, the Karkki forest conservation area does not have any bioindicator monitoring observation areas. In general, the objective of protecting the Karkki forest is to preserve biodiversity and the beauty of nature, and the objective of the Pumminpuisto conservation area is to preserve biodiversity. The operations of the Karkkila foundry have not been found to have negative impacts on the achievement of the conservation objectives. Both the Karkki forest conservation area and the Pumminpuisto conservation area are bordered by the Karjaanjoki river. Componenta regularly monitors the impact of the cooling (closed loop) and storm waters of the Karkkila foundry on the Karjaanjoki river in accordance with the monitoring obligations related to the environmental permit, and the waters discharged from the foundry property have not been found to have a significant impact on the temperature or quality of the water in the river.

Due to the nature of the operations and the fuels used, the emissions into the environment of the production units located in Jyväskylä on Yritystie, Kalajoki on Satamatie, Sepänkylä on Karperöntie and Leppävesi on Ampumaradantie are low, and the operations of the units do not cause significant noise. The effluent from the closed Karkkila Karhunpäänsuo landfill is discharged to the opposite side of the landfill in relation to the conservation area. Componenta's operations have not been found to have negative impacts on nearby conservation areas, and it has not been found that

Componenta needs to take mitigating measures related to biodiversity in its production units.

The impacts of Componenta on water and marine resources, as well as the related risks and opportunities for Componenta, were also assessed in connection with the double materiality assessment. The assessment focused in particular on Componenta's own operations, and the value chain was assessed at a general level. The assessment of impacts, risks and opportunities was carried out based on the existing information Componenta had about its suppliers and the water consumption in its own processes, and the assumptions made were also based on this information. According to the Aqueduct map service, neither of Componenta's foundries is located in an area of high water stress. Marine resources are not, as a rule, used in Componenta's own operations or in the value chain.

In connection with the double materiality assessment, the neighbours of the various production units who make use of the area's ecosystem services or water bodies were not separately consulted, but the assessment was supported by data collected by Componenta in the context of normal business operations. Componenta's foundries in Pori and Karkkila and its forge in Jyväskylä have environmental permits. Neighbours have been consulted in connection with the application for environmental permits and their updating, and neighbours, as well as, for example, nature conservation organisations, have

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

had the opportunity to comment on environmental permit applications. In addition, these parties have the opportunity to express any concerns about Componenta's operations not only directly to Componenta, but also to the environmental authorities, who will inform Componenta of the matter.

Material impacts, risks and opportunities and their interaction with strategy and business model

The impacts, risks and opportunities related to sustainability matters that are material for Componenta were determined through a double materiality assessment, and are related to climate change, pollution (pollution of air), resource use and the circular economy, own workforce and business conduct, as well as entity-specific topics on the availability and price of raw materials and components, cybersecurity, and increasing environmental legislation. These impacts, risks and opportunities are briefly described in the following tables.

Material topic	Impact / risk / opportunity	Location in the value chain	Description
Energy consumption	Actual negative impact	Own operations and the value chain	In particular, foundry and forge operations are energy-intensive due to the high temperatures required by the production processes. Similarly, the production of metal raw materials used by Componenta also requires a great deal of energy. Componenta continuously seeks to improve the efficiency of its production processes, which reduces energy consumption in proportion to the production volume.
Climate change mitigation	Actual negative impact	Own operations and the value chain	Componenta's value chain and its own operations use a great deal of energy, which causes direct and indirect greenhouse gas emissions and contributes to accelerating climate change. Componenta will set emissions reduction targets during 2025.

Climate Change (ESRS E1)

A description of the interaction of the material impacts related to climate change with the company's strategy and business model, as well as a description of Componenta's resilience analysis, is presented on page 45.

Pollution (ESRS E2)

Material topic	Impact / risk / opportunity	Location in the value chain	Description
Air pollution	Actual negative impact	Own operations	Of Componenta's production units, it is mainly foundries that have emissions into the air, which have impacts on, for example, the air quality in the area. Off-gases from foundries' production processes are filtered before they are discharged into the air, which has a significant impact on the amount of emissions

A description of the interaction of the material impact related to pollution with the company's strategy and business model is provided on page 51.

Notes to the consolidated financial statements

Parent company financial statements

Resource use and circular economy (ESRS E5)

Material topic	Impact / risk / opportunity	Location in the value chain	Description
Resource inflows	Actual negative impact	Own operations	Componenta's production and manufacturing processes are raw material-intensive. Componenta constantly seeks to improve its production processes to minimise the number of faulty components, which also reduces the relative consumption of raw materials.
Waste	Actual positive impact	Own operations	Componenta uses significant amounts of recycled metal in its production, in addition to which more than 80% of the waste generated in the processes is recycled or otherwise recovered. Reusing waste in the company's own operations and recycling reduce the impacts of waste on the environment and the consumption of raw materials in own operations.
Resource outflows related to products and services	Actual positive impact Own operations		The return scrap iron generated in the production processes of Componenta's foundries is reused in the process, which reduces the generation of waste. In addition, virtually all products/components manufactured by Componenta can be recycled as metal.
Resource outflows related to products and services	Financial opportunity	Own operations	Optimising production processes and products can reduce the amount of waste generated and improve resource and energy efficiency, which has a direct impact on production-related costs.

A description of the interaction of material impacts and opportunities related to resource use and circular economy with the company's strategy and business model is presented on page 54.

Own workforce (ESRS S1)

Material topic	Impact / risk / opportunity	Location in the value chain	Description
Gender equality and equal pay for work of equal value	Actual positive impact	Own operations	Componenta pays all its employees the same salary for work of equal value, which has a positive impact on the livelihood of female employees in particular and on Componenta's employer image.
Social dialogue, including collective bargaining	Actual positive impact	Own operations	As an employer, Componenta has regular discussions with employees' representatives, which has a positive impact on employees' rights and Componenta's employer image.
Training and skills development	Actual positive impact	Own operations	Componenta provides its personnel with training and advancement opportunities through internal and external training and education. Training and regular performance reviews offer employees the opportunity for professional development and multi-skilling while providing a skilled workforce for Componenta.
Health and safety	Actual negative impact	Own operations	Production work is associated with a relatively higher risk of occupational accidents compared with, for example, office work. Negative impacts on employees in the event of an accident at work can be significant. Most of Componenta's personnel work in production. Componenta seeks to minimise the risk of occupational accidents through, among other means, comprehensive familiarisation with work tasks and conditions, regular risk assessments and continuous measures in accordance with the action plans related to occupational safety.

A description of the interaction of the material impacts related to personnel with the company's strategy and business model is presented on page 60.

Notes to the consolidated financial statements

Business conduct (ESRS G1)

Material topic	Impact / risk / opportunity	Location in the value chain	Description
Corporate culture	Potential positive impact	Own operations	Componenta continuously seeks to improve and assess its corporate culture to provide its personnel with safe working conditions and develop well-being at work. The impacts are positive not only for employees, but also for Componenta through good employer image.

A description of the interaction of the material impact related to business conduct with the company's strategy and business model is provided on page 68.

Entity-specific topics

Material topic	Impact / risk / opportunity	Location in the value chain	Description
Availability and price of raw materials and components	Financial risk	Own operations and the value chain	The Russian attack on Ukraine and the sanctions imposed on Russia may affect the availability and price of raw materials of the right quality, which may increase the cost of production. As a rule, the cost risk is managed by means of index-based price agreements for the main raw materials, based on which the sales prices of the products are updated for the next quarter to correspond to the changes in the prices of raw materials.
Cybersecurity	Financial risk	Own operations and the value chain	A cyberattack on industrial control systems may result in financial losses, as the attack may cause significant damage to the business operations of Componenta or its customers. Componenta has identified the risks involved and is actively working to reduce them.
Increasing environmental legislation	Financial risk	Own operations	Increasingly strict EU and national legislation imposes new requirements on Componenta. Failure to comply may result in penalties and other financial losses. Componenta has acquired additional resources to meet the requirements of the legislation, and is proactively involved with various authorities and industry associations in the development of legislation and application guidelines.

A description of the interaction of entity-specific risks with the company's strategy and business model is provided on pages 58 (availability and price of raw materials and components), 70 (cybersecurity) and 72 (increasing environmental legislation).

List of Disclosure Requirements complied with

Standard	Disclosure requirement	Description	Page
	BP-1	General basis for preparation of sustainability statements	18
	BP-2	Disclosures in relation to specific circumstances	32, 49, 50, 53, 56
	GOV-1	The role of the administrative, management and supervisory bodies	18
	GOV-2	Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	19
	GOV-3	Integration of sustainability-related performance in incentive schemes	20
ESRS 2	GOV-4	Statement on due diligence	32
	GOV-5	Risk management and internal controls over sustainability reporting	20
	SBM-1	Strategy, business model and value chain	20
	SBM-2	Interests and views of stakeholders	21
	SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	27
	IRO-1	Description of the process to identify and assess material impacts, risks and opportunities	23
	IRO-2	Disclosure requirements in ESRS covered by the undertaking's sustainability statement	30
	ESRS 2 GOV-3	Integration of sustainability-related performance in incentive schemes	20
	E1-1	Transition plan for climate change mitigation	47
	ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	45
	ESRS 2 IRO-1	Description of the processes to identify and assess material climate-related impacts, risks and opportunities	45
ESRS E1	E1-2	Policies related to climate change mitigation and adaptation	46
	E1-3	Actions and resources in relation to climate change policies	47
	E1-4	Targets related to climate change mitigation and adaptation	47
	E1-5	Energy consumption and mix	48
	E1-6	Gross Scopes 1, 2, 3 and Total GHG emissions	49
ESRS E2	ESRS 2 IRO-1	Description of the processes to identify and assess material pollution-related impacts, risks and opportunities	51
	E2-1	Policies related to pollution	51
	E2-2	Actions and resources related to pollution	52
	E2-3	Targets related to pollution	52
	E2-4	Pollution of air, water and soil	52
ESRS E3	ESRS 2 IRO-1	Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities	26
ESRS E4	ESRS 2 IRO-1	Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities	25

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

	Disclosure
Standard	requirement	Description	Page
ESRS E5	ESRS 2 IRO-1	Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities	54
	E5-1	Policies related to resource use and circular economy	54
	E5-2	Actions and resources related to resource use and circular economy	55
	E5-3	Targets related to resource use and circular economy	55
	E5-4	Resource inflows	55
	E5-5	Resource outflows	57
	E5-6	Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities	Not reported under Phase-In provisions
	ESRS 2 SBM-2	Interests and views of stakeholders	21
	ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	60
	S1-1	Policies related to own workforce	61
	S1-2	Processes for engaging with own workforce and workers' representatives about impact	62
	S1-3	Processes to remediate negative impacts and channels for own workforce to raise concerns	62
	S1-4	Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	63
	S1-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	65
ESRS S1	S1-6	Characteristics of the undertaking's employees	65
	S1-7	Characteristics of non-employees in the undertaking's own workforce	66
	S1-8	Collective bargaining coverage and social dialogue	66
	S1-13	Training and skills development metrics	Not reported under Phase-In provisions
	S1-14	Health and safety metrics	67
	S1-16	Remuneration metrics (pay gap and total remuneration)	Not reported under Phase-In provisions
	ESRS 2 GOV-1	The role of the administrative, supervisory and management bodies	19
ESRS G1	ESRS 2 IRO-1	Description of the processes to identify and assess material impacts, risks and opportunities	68
	G1-1	Business conduct policies and corporate culture	68

Consolidated financial statements

Parent company financial statements

List of required datapoints incorporated by reference to information outside of the sustainability statement

Datapoint	Description	Reference
ESRS 2 SBM-1 / 40 a i	Significant product groups	Note 1 to the consolidated financial statements – Group's net sales by business area
ESRS 2 SBM-1 / 40 a ii	Market areas	Note 1 to the consolidated financial statements – Group's net sales by market area
ESRS 2 SBM-1 / 42	Business model	Note 1 to the consolidated financial statements
G1 ESRS 2 IRO-1 / 6	Business model	Note 1 to the consolidated financial statements

Statement on due diligence

Core elements of due diligence	Description on pages
a) Embedding due diligence in governance, strategy and business model	19, 61, 62, 69
b) Engaging with affected stakeholders in all key steps of the due diligence process	22, 62
c) Identifying and assessing adverse impacts	23, 45, 51, 54
d) Taking actions to address those adverse impacts	47, 52, 55, 63
e) Tracking the effectiveness of these efforts and communication	47, 52, 55, 65

Consolidated financial statements

List of Datapoints derived from other EU legislation

Disclosure requirement	Datapoint	Description	Page	SFDR reference, (EU) 2019/2088	Pillar 3 reference, (EU) No 575/2013	Benchmark regulation reference, (EU) 2016/1011	EU Climate Law reference, (EU) 2021/1119
ESRS 2 GOV-1	21d	Board's gender diversity	18	x		x
ESRS 2 GOV-1	21e	Percentage of board members who are independent	18			x
ESRS 2 GOV-4	30	Statement on due diligence	32	x
ESRS 2 SBM-1	40d i	Involvement in activities related to fossil fuel activities	Not material	x
ESRS 2 SBM-1	40 d ii	Involvement in activities related to chemical production	Not material	x	x	x
ESRS 2 SBM-1	40 d iii	Involvement in activities related to controversial weapons	Not material	x		x
ESRS 2 SBM-1	40 d iv	Involvement in activities related to cultivation and production of tobacco	Not material			x
ESRS E1-1	14	Transition plan to reach climate neutrality by 2050	47				x
ESRS E1-1	16g	Undertakings excluded from Paris-aligned benchmarks	47		x	x
ESRS E1-4	34	GHG emission reduction targets	47	x	x	x
ESRS E1-5	38	Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)	48	x
ESRS E1-5	37	Energy consumption and mix	48	x
ESRS E1-5	40-43	Energy intensity associated with activities in high climate impact sectors	48	x
ESRS E1-6	44	Gross Scope 1, 2, 3 and Total GHG emissions	49	x	x	x
ESRS E1-6	53–55	Gross GHG emissions intensity	50	x	x	x
ESRS E1-7	56	GHG removals and carbon credits	Not material				x
ESRS E1-9	66	Exposure of the benchmark portfolio to climate-related physical risks	Not material			x
ESRS E1-9	66a	Disaggregation of monetary amounts by acute and chronic physical risk	Not material		x
ESRS E1-9	66c	Location of significant assets at material physical risk	Not material		x
ESRS E1-9	67c	Breakdown of the carrying value of its real estate assets by energy-efficiency classes	Not material		x

Consolidated financial statements

Notes to the consolidated financial statements

Disclosure requirement	Datapoint	Description	Page	SFDR reference, (EU) 2019/2088	Benchmark regulation reference, (EU) 2016/1011
ESRS E1-9	69	Degree of exposure of the portfolio to climate- related opportunities	Not material		x
ESRS E2-4	28	Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil	52	x
ESRS E3-1	9	Water and marine resources	Not material	x
ESRS E3-1	13	Dedicated policy	Not material	x
ESRS E3-1	14	Sustainable oceans and seas	Not material	x
ESRS E3-4	28c	Total water recycled and reused	Not material	x
ESRS E3-4	29	Total water consumption in m3 per net revenue on own operations	Not material	x
ESRS 2 – IRO-1 – E4	16 a i	Activities negatively affecting biodiversity sensitive areas	Not material	x
ESRS 2 – IRO-1 – E4	16 b	Material negative impacts with regards to land degradation, desertification or soil sealing	Not material	x
ESRS 2 – IRO-1 – E4	16 c	Impacts on threatened species	Not material	x
ESRS E4-2	24 b	Sustainable land / agriculture practices or policies	Not material	x
ESRS E4-2	24 c	Sustainable oceans / seas practices or policies	Not material	x
ESRS E4-2	24 d	Policies to address deforestation	Not material	x
ESRS E5-5	37 d	Non-recycled waste	58	x
ESRS E5-5	39	Hazardous waste and radioactive waste	58	x
ESRS 2 – SBM-3 – S1	14 f	Risk of incidents of forced labour	60	x
ESRS 2 – SBM-3 – S1	14 g	Risk of incidents of child labour	60	x
ESRS S1-1	20	Human rights policy commitments	69	x
ESRS S1-1	21	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8	69		x
ESRS S1-1	22	Processes and measures for preventing trafficking in human beings	61	x

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Disclosure requirement	Datapoint	Description	Page	SFDR reference, (EU) 2019/2088	Benchmark regulation reference, (EU) 2016/1011
ESRS S1-1	23	Workplace accident prevention policy or management system	61	x
ESRS S1-3	32 c	Grievance/complaints handling mechanisms	62	x
ESRS S1-14	88 b & c	Number of fatalities and number and rate of work-related accidents	67	x	x
ESRS S1-14	88 e	Number of days lost to injuries, accidents, fatalities or illness	67	x
ESRS S1-16	97 a	Unadjusted gender pay gap	Not reported under Phase-In provisions	x	x
ESRS S1-16	97 b	Excessive CEO pay ratio	Not reported under Phase-In provisions	x
ESRS S1-17	103 a	Incidents of discrimination	Not material	x
ESRS S1-17	104 a	Non-respect of UNGPs on Business and Human Rights and OECD Guidelines	Not material	x	x
ESRS 2 – SBM-3 – S2	11 b	Significant risk of child labour or forced labour in the value	Not material	x
ESRS S2-1	17	Human rights policy commitments	Not material	x
ESRS S2-1	18	Policies related to value chain workers	Not material	x
ESRS S2-1	19	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	Not material	x	x
ESRS S2-1	19	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8	Not material		x
ESRS S2-4	36	Human rights issues and incidents connected to its upstream and downstream value	Not material	x
ESRS S3-1	16	Human rights policy commitments	Not material	x
ESRS S3-1	17	Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines	Not material	x	x

report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Disclosure requirement	Datapoint	Description	Page	SFDR reference, (EU) 2019/2088	Benchmark regulation reference, (EU) 2016/1011
ESRS S3-4	36	Human rights issues and incidents	Not material	x
ESRS S4-1	16	Policies related to consumers and end-users	Not material	x
ESRS S4-1	17	Non-respect of UNGPs on Business and Human Rights and OECD guidelines	Not material	x	x
ESRS S4-4	35	Human rights issues and incidents	Not material	x
ESRS G1-1	10 b	United Nations Convention against Corruption	68	x
ESRS G1-1	10 d	Protection of whistleblowers	69	x
ESRS G1-4	24 a	Fines for violation of anti-corruption and anti-bribery laws	Not material	x	x
ESRS G1-4	24 b	Standards of anti-corruption and anti-bribery	Not material	x

Notes to the consolidated financial statements

Parent company financial statements

Environmental information

EU Taxonomy

Regulation (EU) 2020/852 of the European Parliament and of the Council (Taxonomy Regulation) was issued on 18 June 2020 as a consistent classification system for sustainable economic activities. Its purpose is to support the European Green Deal strategy for a climate neutral European Union by 2050 and to support economic growth by maximising the efficiency and sustainability of the use of natural resources. The goal is also to increase sustainable investment and steer capital flows to sustainable technologies and business operations.

The EU taxonomy specifies six environmental goals:

Climate change mitigation
Climate change adaptation
Sustainable use and protection of water and marine resources
Transition to the circular economy
Pollution prevention and control
Protection and restoration of biodiversity and ecosystems

In accordance with the Taxonomy Regulation and Commission Delegated Regulation (EU) 2023/2486, during the 2024 reporting year, companies are required to report the taxonomy-eligible and

non-taxonomy-eligible proportions as well the taxonomy-aligned and non-taxonomy-aligned proportions of the group's turnover, capital expenditure (later also referred to as "investments") and operating expenditure, specified in accordance with economic activities, concerning the six environmental objectives.

Alignment with the taxonomy requires that taxonomy-eligible economic activities meet the technical screening criteria, cause no significant harm to other environmental objectives and meet the minimum social safeguards.

In terms of its own operating activities, Componenta has identified economic activity 3.9 'Manufacture of iron and steel'. In its calculation, Componenta has taken turnover, capital expenditure and operating expenditure into account only once. Componenta supports the transition to more sustainable solutions regarding energy efficiency and emissions.

Taxonomy-eligible and taxonomy-aligned turnover

Componenta is a contract manufacturer that produces cast and machined components as well as forged blanks, welded structures, pipe products and metal sheet cuttings for its customers. Componenta does not develop products of its

own. Componenta's turnover is presented in accordance with the figures reported by Componenta Group. Componenta's accounting principles for turnover are presented in Note 1 to the consolidated financial statements. According to Componenta's analysis, its turnover from foundry operations falls within economic activity 3.9 'Manufacture of iron and steel' and is taxonomy-eligible regarding climate change mitigation. In other respects, Componenta estimates that its turnover is not taxonomy-eligible regarding the aforementioned environmental objectives. Componenta's taxonomy-eligible activity is 3.9 'Manufacture of iron and steel'. In terms of the activity 3.9 'Manufacture of iron and steel', the technical screening criteria are not met with regard to the manufacturing methods used by Componenta. For this reason, the company has no taxonomy-aligned turnover. If the technical screening criteria were met, taxonomy alignment would also require, in this order, compliance with the DNSH (Do No Significant Harm) criteria and the minimum social safeguards. For the reason stated above, these criteria and requirements are not relevant in terms of Componenta's taxonomyalignment analysis.

Notes to the consolidated financial statements

Parent company financial statements

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024		2024		Substantial contribution criteria								DNSH criteria		('Does Not Significantly Harm')
Economic Activities	Code	Turnover M€	Proportion of Turnover, year 2024 %	mate Change Mitigation Ci Y; N; N/EL	mate Change Adaptation Cli Y; N; N/EL	Water Y; N; N/EL	Pollution Y; N; N/EL	my Circular Econo Y; N; N/EL	Biodiversity Y; N; N/EL	mate Change Mitigation Cli Y/N	mate Change Adaptation Cli Y/N	Water Y/N	Pollution Y/N	my Circular Econo Y/N	Biodiversity Y/N	m Safeguards mu Mini Y/N	my (A.2) turnover, year 2023 aligned (A.1) or -eligible Proportion of Taxono %	Category enabling activity E	Category transitional activity T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable activities (Taxonomy aligned) (A.1)
Of which enabling
Of which transitional

Sustainability statement

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.

EL: Taxonomy-eligible activity for the relevant objective

N/EL: Taxonomy-non-eligible activity for the relevant objective.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024		2024		Substantial contribution criteria							('Does Not Significantly Harm')		DNSH criteria
Economic Activities	Code	Turnover	Proportion of Turnover, year 2024	mate Change Mitigation Ci	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	mate Change Mitigation Cli	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	m Safeguards mu Mini	my (A.2) turnover, year 2023 aligned (A.1) or -eligible Proportion of Taxono	Category enabling activity	Category transitional activity
		M€	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/ EL	EL; N/ EL	EL; N/ EL	EL; N/ EL	EL; N/ EL	EL; N/ EL
Manufacture of iron and steel	C 24.5.1	48	50%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								49%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		48	50%	100%	0%	0%	0%	0%	0%								49%
A. Turnover of Taxonomy eligible activities (A.1+A.2)		48	50%	100%	0%	0%	0%	0%	0%								49%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non eligible activities		49	50%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.

EL: Taxonomy-eligible activity for the relevant objective

N/EL: Taxonomy-non-eligible activity for the relevant objective.

TOTAL 97 100%

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Taxonomy-eligible and taxonomy-aligned capital expenditure and operating expenditure

Componenta has identified that its taxonomyeligible capital expenditure in 2024 includes capital expenditure directly related to generating taxonomy-eligible turnover. Componenta doesn't have other material taxonomy-eligible investments. The taxonomy-eligible proportion of capital expenditure was calculated by dividing the taxonomy-eligible proportion of capital expenditure by the Group's total capital expenditure during the 2024 financial year. Capital expenditure is presented in accordance with the figures reported

by Componenta Group. Componenta's accounting principles for capital expenditure are presented in Notes 10 and 12 to the consolidated financial statements. Componenta has no taxonomy-aligned capital expenditure.

In terms of operating expenditure, Componenta has identified maintenance and environmental monitoring costs directly related to the maintenance of production factors necessary for generating taxonomy-eligible turnover. In accordance with the taxonomy requirements,

Componenta has excluded direct production costs from taxonomy-eligible operating expenditure. The numerator in the calculation formula for operating expenditure includes the proportion related to maintenance and upkeep of the following costs: purchased maintenance work, tools, spare parts, external services, other variable costs, and variable and fixed salaries. The denominator includes the total of the costs mentioned above. Componenta has no taxonomy-aligned operating expenditure.

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024		2024		Substantial contribution criteria									DNSH criteria	('Does Not Significantly Harm')
Economic Activities	Code	CapEx	Proportion of CapEx, year 2024	mate Change Mitigation Ci	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	mate Change Mitigation Cli	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	m Safeguards mu Mini	my aligned (A.1) or -eligible (A.2) CapEx, year 2023 Proportion of Taxono	Category enabling activity	Category transitional activity
		M€	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	M	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional

Notes to the consolidated financial statements

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024		2024		Substantial contribution criteria							DNSH criteria ('Does Not Significantly Harm')
Economic Activities	Code	CapEx	Proportion of CapEx, year 2024	mate Change Mitigation Ci	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	mate Change Mitigation Cli	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	m Safeguards mu Mini	my aligned (A.1) or -eligible (A.2) CapEx, year 2023 Proportion of Taxono	Category enabling activity	Category transitional activity
		M€	%	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL;N/ EL	EL;N/ EL	EL;N/ EL	EL;N/ EL	EL;N/ EL	EL;N/ EL
Manufacture of iron and steel	C24.5.1	0.9	14%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								33%
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		0.9	14%	100%	0%	0%	0%	0%	0%								33%
A. CapEx of Taxonomy-eligible activities (A.1+A.2)		0.9	14%	100%	0%	0%	0%	0%	0%								33%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

Sustainability statement

CapEx of Taxonomy-non-eligible activities	5.8	86 %
TOTAL	6.7	100 %

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.

EL: Taxonomy-eligible activity for the relevant objective

N/EL: Taxonomy-non-eligible activity for the relevant objective.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024		2024		Substantial contribution criteria							('Does Not Significantly Harm')		DNSH criteria
Economic Activities	Code	OpEx	Proportion of OpEx, year 2024	mate Change Mitigation Ci	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	mate Change Mitigation Cli	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	m Safeguards mu Mini	my aligned (A.1) or -eligible Proportion of Taxono (A.2) OpEx, year 2023	Category enabling activity	Category transitional activity
		M€	%	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional

Notes to the consolidated financial statements

Parent company financial statements

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024	2024			Substantial contribution criteria					DNSH criteria ('Does Not Significantly Harm')
Economic Activities	Code	OpEx	Proportion of OpEx, year 2024	mate Change Mitigation Ci	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	mate Change Mitigation Cli	mate Change Adaptation Cli	Water	Pollution	my Circular Econo	Biodiversity	m Safeguards mu Mini	my aligned (A.1) or -eligible Proportion of Taxono (A.2) OpEx, year 2023	Category enabling activity	Category transitional activity
		M€	%	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y; N; N/ EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/ EL	EL; N/ EL	EL; N/ EL	EL; N/ EL	EL; N/ EL	EL; N/ EL
Manufacture of iron and steel	C 24.5.1	5.1	15%	EL	N/EL	N/EL	N/EL	N/EL	N/EL								9%
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		5.1	15%	100%	0%	0%	0%	0%	0%								9%
OpEx of Taxonomy eligible activities (A.1+A.2)		5.1	15%	100%	0%	0%	0%	0%	0%								9%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy non-eligible

Sustainability statement

activities 27.9 85% TOTAL 33.0 100%

Y: Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective

N: No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective

N/EL: Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.

EL: Taxonomy-eligible activity for the relevant objective

N/EL: Taxonomy-non-eligible activity for the relevant objective.

Nuclear and fossil gas related activities

Row	Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

Based on Componenta's analysis, the company's taxonomy-alignment percentages may change in the future if the company's contract manufacturing operations are taken into account in the further specified regulation.

Board of Directors'

report

statements

Consolidated financial

Notes to the consolidated financial statements

Parent company financial statements

Climate Change

Description of the processes to identify and assess material climate-related impacts, risks and opportunities, and the material impacts, risks and opportunities and their interaction with strategy and business model

In connection with the double materiality assessment, two material climate change-related topics were identified, on which Componenta's operations and value chain have a negative impact: energy consumption and climate change mitigation. No material risks or opportunities were identified related to climate change. In particular, foundry and forge operations are energy-intensive due to the high temperatures required by production processes. In Componenta's upstream value chain, there are also large energy consumers related to the production of metal raw materials. Energy consumption in the company's own operations and in the value chain causes direct and indirect greenhouse gas emissions, which contribute to the acceleration of climate change. Componenta continuously seeks to improve the efficiency of its production processes, as a result of which energy consumption and, as a rule, greenhouse gas emissions are reduced in proportion to the production volume. Componenta has specified sustainability as one of the focus areas of its current strategy period, and sets emissions reduction targets as part of the implementation of the strategy. Achieving long-term targets may require changes in Componenta's value chain so that lowemission companies are favoured in supplier

selection, for example. Componenta's emissions are directly related to the company's business operations, but the reduction of emissions does not require any changes to the business model.

Sustainability statement

Componenta has calculated its own greenhouse gas emissions (Scope 1 and Scope 2) annually since 2021. Before 2024, the value chain's greenhouse gas emissions (Scope 3) had been calculated once, for 2021. When assessing Componenta's impacts on climate change, Componenta's own and the value chain's greenhouse gas emissions were taken into account. In terms of Componenta's own operations, the double materiality assessment specifically looked at processes that involve the greatest energy consumption and emission sources. Componenta's total emissions in 2021 were used for the assessment of the impacts of Componenta's greenhouse gas emissions and those of its value chain.

Resilience analysis

Componenta carried out a climate resilience analysis of its business operations towards the end of 2024. The resilience analysis used the IPCC science-based climate scenarios SSP1-2.6 (SSP1), SSP2-4.5 (SSP2) and SSP5-8.5 (SSP5). The analysis looked at the impacts of the different scenarios on Componenta's operations in the medium term (2025–2030) and long term (2030–2050). The time frames selected for the analysis correspond to the implementation schedule of the EU's climate targets, can be examined within the framework of the selected climate scenarios, and provide realistic time horizons for the review of Componenta's current locations, business operations and strategy development. The impacts of different scenarios in the short term (2024–2025) were not considered in the resilience analysis, as these impacts were not considered to significantly differ from the medium term impacts. Componenta's resilience analysis covers its own operations as a whole in terms of physical risks, and more narrowly, metal production in the upstream value chain and the largest business areas (machine building and agricultural machinery) in the downstream value chain. The impacts of transition events were examined especially in terms of own operations. In terms of the value chain, transition events were examined insofar as the events affecting the value chain are expected to have a direct impact on Componenta. In connection with the resilience analysis, the chronic and acute physical hazards related to climate as defined in the EU taxonomy, as well as transition events related to politics and legislation, technology, markets and reputation were assessed. All hazards and events identified as potentially material in the pre-analysis of physical hazards and transition events were taken into account in the actual resilience analysis.

Three alternative shared socio-economic pathways (SSP) were selected as bases for climate scenarios in the resilience analysis, which are considered to represent predictable extremes in the development of climate change and economic policies (SSP1 and SSP5), as well as the consequences of climate change in a situation where the economic policy

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

environment remains relatively unchanged (SSP2). SSP1 illustrates the trajectory of low greenhouse gas emissions (global warming of just over 1.5°C). In SSP1, international and national policies focus on sustainable development, and economic growth as well as resource and energy consumption is moderate. SSP2 illustrates the current trend in terms of policy and greenhouse gas emissions. SSP5 describes intensively accelerating climate change and international and national policies that support a free economic market, leading to strong economic growth and high consumption of resources and energy. The impacts of the different scenarios on climate were examined in terms of the expected rainfall and temperature changes using the World Bank's Climate Change Knowledge Portal, and flood risk was assessed using open data produced by the Finnish Environment Institute. In other respects, the analysis used general information available from public sources on the impacts of climate change on, for example, the economy in Finland and internationally. In the context of the resilience analysis, the impact of each physical hazard and transition event on Componenta's business was assessed in each climate scenario and both time horizons. In assessing the magnitude of the physical impacts, the geographical location of the site under assessment was taken into account at the national level and, where applicable, the site level for the company's own sites, and at the country or continent level for the value chain. The impact was defined as minor, medium or major. A minor impact means that the hazard or event is not considered to

have a practical impact on Componenta's business. A medium impact is considered to have an impact on Componenta's business, but Componenta is able to react to the hazard or event with the means available to the company and, if necessary, adjust its operations so that the business is not jeopardised. A major impact is considered to have significant consequences on Componenta's operations, and the hazard or event is considered to possibly jeopardise the company's business.

In connection with the resilience analysis, no chronic or acute hazards or transition events were identified that would have a major impact on Componenta's business through its own operations or value chain. An average impact associated with floods was identified over the long term in all climate scenarios in the company's own operations and in the value chain. An average impact associated with heatwaves, heavy precipitation and landslides was identified when looking at the climate scenario SSP5, mainly in the long term. In the climate scenarios SSP1 and SSP2, an average impact was identified in the medium to long term in terms of the regulation of current production processes and the cost of the transition to lower-emission technologies. Substitution of existing products with lower-emission alternatives was identified as being associated with an average impact over the long term when considering climate scenarios SSP1 and SSP2. Componenta is able to adapt to the physical hazards and transition events described above by, for example, renewing technology and

equipment, as well as through its extensive supplier portfolio. For example, it is possible to replace the LPG used by the company in cutting plates and as a heat source in production processes with other types of technology. Business operations that are considered to involve climate-related impacts through physical hazards or transition events, as well as potentially affected assets, are taken into account as a natural part of Componenta's strategy, investment decisions and business management. According to the resilience analysis, Componenta is able to carry out climate change mitigation and adaptation measures necessary for its business and strategy in the medium and long term, in order to secure business operations and, for example, access to financing. Componenta does not consider it necessary to change its business model to respond to climate change impacts, physical hazards or transition events. The resilience analysis is based on forward-looking climate scenarios and Componenta's own views on the development of its business and the business environment in light of these models. The uncertain world situation increases the uncertainty related to the results of the resilience analysis.

Policies related to climate change mitigation and adaptation, including transition plan for climate change mitigation

Componenta's QEHS policy guides the company's operations to promote climate change mitigation and improve energy efficiency in its own operations. In accordance with its QEHS policy, Componenta aims to reduce its greenhouse gas emissions by,

Board of Directors' report

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

for example, developing its production processes and the energy efficiency of the units, and by increasing the share of fossil-free energy in its energy procurement. Componenta's Code of Conduct for suppliers and subcontractors deals with the energy efficiency of suppliers' and subcontractors' operations and, consequently, climate change mitigation. Suppliers and subcontractors must limit their energy consumption as much as possible. Componenta's QEHS policy is described in more detail on page 52, and the Code of Conduct for suppliers and subcontractors on page 69. The policies do not specifically address climate change adaptation or the adoption of renewable energy. The topics have not been separately defined as material for the company.

Componenta is not planning to prepare a transition plan for its business regarding climate change mitigation in the near future.

Actions and resources in relation to climate change policies

Componenta continuously seeks to improve energy efficiency and reduce energy use. Efforts are made to improve the efficiency of energy use by, for example, developing and improving quality and investing in energy-efficient machinery and equipment, and by means of methodology design and energy audits. In iron foundries, production volumes, load stability and the optimisation of quality have a major impact on relative energy consumption and energy efficiency, as the amount of energy needed to maintain production readiness, such as keeping hot metal melted, is not directly reduced by a possible reduction in production volumes. During 2024, Componenta did not take individual material measures related to climate change mitigation, as no emissions reduction targets had yet been set, and a roadmap related to achieving targets had not been drawn up.

Targets related to climate change mitigation and adaptation

Componenta does not have long-term targets related to climate change mitigation and adaptation. Emissions reduction targets will be set during 2025.

Componenta monitors its energy consumption in proportion to the production volume, in connection with which a short-term (one year) target is set annually. Efforts are made to reduce energy consumption proportional to the production volume, and the target is typically set at a lower relative level than in the previous year (quantitative indicator). In addition, since 2021, Componenta has calculated the greenhouse gas emissions of its own operations (Scope 1 and Scope 2).

Parent company financial statements

Energy consumption and mix

Energy consumption and mix	2024
Fuel consumption from coal and coal products (MWh)
Fuel consumption from crude oil and petroleum products (MWh)
Fuel consumption from natural gas (MWh)
Fuel consumption from other fossil sources (MWh)
Consumption of purchased or acquired electricity, heat, steam and cooling from fossil sources (MWh)	45,231
Total fossil energy consumption (MWh)	52,238
Share of fossil sources in total energy consumption (%)	67.7
Consumption from nuclear sources (MWh)	24,855
Share of consumption from nuclear sources in total energy consumption (%)	32.2
Fuel consumption from renewable sources, including biomass (MWh)	55
Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources (MWh)	24
Consumption of self-generated non-fuel renewable energy (MWh)	0
Total renewable energy consumption (MWh)	80
Share of renewable sources in total energy consumption (%)
Total energy consumption (MWh)

Energy intensity per net revenue	2024
Total energy consumption in relation to the Group's net sales (MWh/EUR thousand)1	0.79

¹Componenta's operations as a whole fall under NACE code C – Manufacturing, which is defined as one of the sectors with a significant climate impact. Componenta Group's net sales in 2024 are presented in Note 1 to the consolidated financial statements.

Information about calculation methods

Componenta uses light fuel oil, wood pellets, LPG as well as small amounts of diesel oil and gasoline as fuels in its own operations. Purchased and acquired energy consists of electricity and district heating. The energy consumption data presented above include all Componenta's fuel, electricity and district heat consumption, as well as the electricity and district heat consumption of sub-tenants to the extent that this cannot be separated from Componenta's own consumption, and is based on actual consumption data. In the calculation of energy consumption data, calorific values and coefficients in accordance with Statistics Finland's fuel classification were used. In 2024, with the exception of the Vantaa office, no electricity or district heat was used at Componenta that would have been certified as renewable through guarantees of origin or otherwise. Thus, in accordance with the conservative approach, all district heat consumed by Componenta, with the exception of the Vantaa office, is reported as originating from fossil sources, although, according to district heat producers, a large part of the district heat used by Componenta is produced from renewable sources. In 2024, the Vantaa office used certified nuclear-based electricity. In addition, Componenta acquired guarantees of origin for nuclear-based electricity to cover part of the energy consumption of production operations in 2024. All the electricity consumed by Componenta is, therefore, in accordance with the conservative approach, defined as originating from fossil and nuclear sources. In addition to the guarantees of origin, electricity origin data reported by Componenta's electricity suppliers and electricity origin in accordance with the residual mix were used in the calculation of the origin mix of the electricity used by Componenta. The share of certified renewable and nuclearbased electricity was deducted from the origin data reported by electricity suppliers to the extent the information was available. From the remaining origin mix (including the residual mix), the share of other renewable energy was further deducted, which was added to the share of electricity from fossil origin. The origin mix thus determined was used to calculate the origins of the electricity used by Componenta and not covered by guarantees of origin or other certificates.

Parent company financial statements

Gross scopes 1, 2 and 3 and total GHG emissions

review

	2024	2024
	(Including emissions from the acquired business as of	(Including emissions from the acquired business for the
Componenta Group's greenhouse gas (GHG) emissions	1 Oct 2024)	full year 2024)
Scope 1 GHG emissions
Gross Scope GHG emissions (tCO2eq) 1	1,833	2,204
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 2	0	0
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2eq) 3	6,781	6,895
Gross market-based Scope 2 GHG emissions (tCO2eq) 4	11,896	12,374
Significant scope 3 GHG emissions
Total gross indirect (Scope 3) GHG emissions (tCO2eq)	55,672	63,622
1 Purchased goods and services5	40,755	46,902
2 Capital goods6	335	381
3 Fuel- and energy-related activities (not included in Scope1 or Scope 2) 7	2,247	2,354
4 Upstream transportation and distribution 8	2,527	2,854
5 Waste generated in operations 9	1,784	1,886
6 Business traveling 10	60	66
7 Employee commuting 11	837	974
9 Downstream transportation 12	733	830
12 End-of-life treatment of sold products 13	5,729	6,710
13 Downstream leased assets 14	665	665
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)	64,285	72,721
Total GHG emissions (market-based) (tCO2eq)	69,401	78,199

¹ Includes greenhouse gas emissions (excluding biogenic CO2 emissions) from the Componenta Group's stationary combustion, mobile combustion, process emissions and fugitive emissions. The calculation is based on actual consumption and emission factors from public sources.

² Componenta does not have operations covered by emissions trading schemes.

³ Includes the electricity and district heat consumed by the Componenta Group. The calculation is based on actual electricity and district heat consumption data, and on national average emission factors.

⁴ The calculation is based on electricity and district heat consumption data, producer-specific and residual mix electricity emission factors and guarantees of origin. In 2024, Componenta's Vantaa office used certified zero-emission district heat and electricity. In addition, Componenta acquired separately guarantees of origin for nuclear-based electricity for 2024. Certified zero-emission energy covered 29.6% of all electricity and district heat used by Componenta.

⁵ Includes purchases of the Componenta Group. Emission factors collected primarily from raw material and material suppliers and, secondarily, massbased emission factors from public sources were used in the calculation. For purchases for which weight could not be determined, emissions were calculated using cost-based emission factors from public sources. In terms of the foundries, the weights used in the calculation represent largely actual used amounts instead of purchased amounts. It was assumed that annual purchased amounts correspond to the actual used amounts.

⁶ Includes capital goods acquired by the Componenta Group during the reporting period, excluding capital goods acquired under leases. Cost-based emission factors from public sources were used in the calculation.

⁷ The calculation is based on consumption data in accordance with Scope 1 and Scope 2 calculations and emission factors from public sources. In addition, the category includes the emissions from the production of heat sold to third parties by Componenta.

⁸ Emissions and/or fuel consumption data collected from the transport companies most used by Componenta were used in the calculation. The emissions of other freight paid for by Componenta were calculated using cost-based emission factors collected from public sources. A sample of Componenta's suppliers and their most common terms of delivery, as well as the ratio of the cost of incoming and outgoing freight paid for by Componenta, was used to calculate the emissions of inbound freight paid for by Componenta's customers .
⁹ Includes waste generated in the Componenta Group (the methods used to calculate the amount of waste are described on page 58). Emissions data reported by Componenta's waste management operators was used in the calculation were available, and, for the remaining waste, emissions were calculated on a mass basis using emission factors from public sources.

¹⁰ The calculation includes trips (excluding hotel stays) during the reporting period. The calculation is based on data collected from Componenta's electronic systems on the lengths of trips, as well as emission factors from

public sources. 11 The calculation is based on a commute survey of Componenta's staff carried out at the beginning of 2025 and emission factors from public sources.

¹² The calculation is based on the share of Componenta's outbound freight paid by customers in all outbound freight. Category 4 emissions data for outbound freight paid by Componenta was used in the calculation. 13 The calculation is based on the volume of products sold insofar as the data

is available at Componenta. In other respects, the calculation is based on the difference between the amount of metals acquired and the amount of metal waste generated, as well as the weight of the materials used in assembly. Massbased emission factors from public sources were used as emission factors. ¹⁴ Componenta leases out premises it owns at the Karkkila foundry and the discontinued Pietarsaari foundry that are not used in its own operations. Category 13 takes into account the electricity and heat consumption of the tenants insofar as it was possible to reliably separate it from Componenta's own consumption. The remaining part of the tenants' heat and electricity consumption is included in Componenta's Scope 2 emissions. Producer-specific emission factors were used in the calculation.

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Biogenic CO2 emissions	2024 (Including emissions from the acquired business as of 1 Oct 2024)
Scope 1, tCO2	20
Scope 2, tCO2	3,033
Scope 3, tCO2	32
Total biogenic CO2 emissions, tCO2	3,085

GHG intensity per net revenue	2024 (Including emissions from the acquired business as of 1 Oct 2024)
Total GHG emissions (location-based) per the Group's net sales (tCO2eq/EUR thousand)1	0.66
Total GHG emissions (market-based) per the Group's net sales (tCO2eq/EUR thousand)1	0.71

1 Does not include biogenic emissions. The Componenta Group's net sales for the year 2024 are presented in Note 1 to the consolidated financial statements.

Information about calculation methods

The Componenta Group's greenhouse gas emissions were calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard and Corporate Value Chain (Scope 3) Accounting and Reporting Standard using a calculation tool tailored to Componenta. Emissions include the emissions of all Componenta's production units and the Vantaa office in accordance with the operational control approach. Emissions from the business acquired during the reporting period were included from the date of acquisition. In addition, the Group's greenhouse gas emissions for the entire year were separately

calculated as if the business acquired during the reporting period had been part of Componenta from the beginning of 2024. These emissions were calculated for Scope 1 and 2 emissions based on actual consumption data and for Scope 3 emissions by multiplying the emissions of the acquired businesses in the fourth quarter by four (date of acquisition 1 October 2024). The emission factors used are emission factors collected from Componenta's suppliers, as well as emission factors obtained from public sources (e.g. Statistics Finland, the Energy Authority, Local Power, IPCC, DEFRA and US EPA). The emission factors used were the latest available factors suitable for the calculation.

The greatest uncertainties in the calculation are related to costbased emission factors and the calculations that use them, especially in Scope 3 categories 1 (Purchased goods and services; only a small part is calculated using cost-based emission factors) and 2 (Capital goods; the whole category is calculated using costbased emission factors), and to transport emissions in categories 4 (Upstream transportation and distribution) and 9 (Downstream transportation and distribution), where the calculation is partly or entirely based on estimates. Category 4 calculation is mainly based on emissions and/or fuel consumption data from the value chain, but emissions of incoming freight paid for by suppliers were estimated. In addition, when calculating incoming freight paid for by suppliers, it was assumed that the sample of suppliers and their most commonly used delivery terms can be extended to cover all Componenta's suppliers in the same ratio. Category 9 calculation is based on Componenta's estimate of the proportion of the outbound freight paid for by customers.

Scope 3 category 10 (Processing of sold products) was excluded from the calculation, as it was not realistically possible for Componenta to collect, or even to assess at an acceptable level, the emissions related to the further processing of the components it manufactures due to the very broad product portfolio and the numerous possible further processing methods. In 2024, Componenta did not have activities that would result in greenhouse gas emissions falling under Scope 3 categories 8 (Upstream leased assets), 11 (Use of sold products; Componenta's products are not used as such, but

are always a component of a larger whole), 14 (Franchises) and 15 (Investments). The CO2 emissions generated through the potential oxidation of coke and graphite used as additives in the foundries' production processes are excluded from Scope 1 emissions as their amount is not considered to be material.

For Scope 2 emissions, biogenic carbon dioxide emissions were calculated only for district heating, as for electricity, there was no reasonably available information about how much of the renewable electricity sold by the producers was produced from biomass and could be allocated to Componenta without guarantees of origin. Biogenic carbon dioxide emissions for district heating were calculated based on the publicly reported production distributions of Componenta's district heat producers (Componenta does not have guarantees of origin agreements for district heating, except for the Vantaa office). The producerspecific emission factors for district heating and electricity, or the average emission factors for electricity and district heating used in the calculation of location-based emissions do not include greenhouse gases other than carbon dioxide. In the calculation, it was assumed that the producer-specific emission factors used do not include the share of biogenic carbon dioxide.

For the calculation of Scope 3 emissions, some of Componenta's largest material suppliers and waste management operators, as well as transport companies, were approached for the collection of data for the calculation. 24% of Scope 3 emissions were calculated using these emission factors collected from suppliers or emission calculations or fuel consumption data provided by suppliers. For Scope 3 emissions, biogenic carbon dioxide emissions were calculated to the extent reasonably possible for category 3 (Fuel- and energy-related activities; biogenic carbon dioxide emissions of sold district heat).

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Pollution

Description of the processes to identify and assess material pollution-related impacts, risks and opportunities, and the material impacts, risks and opportunities and their interaction with strategy and business model

The emissions of foundries into the air and their impact on regional air quality have been identified as a material actual impact related to own operations in the context of Componenta's double materiality assessment. In the double materiality assessment, Componenta assessed pollutionrelated impacts, risks and opportunities in its own operations, as well as impacts in the upstream and downstream value chain. The pollutionrelated impacts of the value chain were assessed at a general level. Data on the value chain was not collected separately for the assessment, but the assessment was based on existing data on suppliers, customers and the company's value chain in general at Componenta. The impacts, risks and opportunities related to the company's own operations were assessed for Componenta's operating production units. The assessment used the results of the emissions measurements (emissions into the air) and groundwater and storm water monitoring conducted in accordance with the environmental permit requirements of the foundries, the results of the measurements of emissions into the air conducted in accordance with the environmental permit reqiurements of the forge and information about the chemicals used by Componenta, as well as data collected in connection with the day-to-day operations of the production units on potential sources of environmental pollution. Componenta Manufacturing Oy's production units are not considered to have material emissions into air, water or soil in normal operation due to the nature of the fuels and production processes used. For Componenta Castings Oy, no material emissions into water or soil were identified. No material financial risks or opportunities were estimated to be related to the topic.

In connection with the double materiality assessment, the neighbours of the different production units were not separately consulted. The emissions into the air of units subject to environmental permits and the emission limit values set for them, as well as the sources of potential emissions into water and soil, are described in the units' environmental permit applications and environmental permits. Neighbours have been consulted in connection with the application for environmental permits, and neighbours, as well as, for example, nature conservation organisations, have had the opportunity to file an objection or give their opinion on the environmental permit applications. In addition, these parties have the opportunity to express any concerns about Componenta's operations not only directly to Componenta, but also to the environmental authorities, who will inform Componenta of the matter.

The emissions into the air generated in Componenta's operations are directly related to the company's foundry business, and are caused by the company's own operations. Foundries have effective filtration equipment, which significantly reduces the emissions into the air of foundries and thereby limits the associated impacts. However, it is not possible to completely remove impurities from the off-gases of the foundry production processes. The emissions of the foundries contribute negatively to air quality in the areas immediately surrounding the foundries. The local air quality is also particularly affected by road traffic exhaust gases and household wood burning in the area, as well as any other industrial activities in the area. The emissions into the air related to the foundry business and the associated impacts are continuous by nature, and their monitoring and management are an integral part of the daily operations of the foundry business. Componenta has not made and is not planning to make changes to its business model or strategy regarding emissions into the air due to their moderate impacts, and the impacts do not have a direct impact on Componenta's value chain. When making decisions related to investments in production technology, environmental factors, and consequently the impacts of the investments on emissions into the air, are taken into account.

Policies related to pollution

The Componenta Group's QEHS policy provides a framework for managing the emissions into the air from foundries and limiting their impacts. In addition, both foundries have monitoring plans approved by the authorities related to

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environmental permits, the primary purpose of which is to establish operating principles for monitoring emissions into the air and to help limit the formation of higher-than-normal emissions in operations as a result of equipment failures, for example. Componenta has no policies related to water and soil pollution or substances of concern or very high concern. The topics have not been defined as material for the company.

The objective of Componenta's QEHS policy is to define Componenta's commitment to quality, the environment and occupational health and safety in all the company's operations. In accordance with the QEHS policy, Componenta undertakes to minimise its pollution-related environmental impacts especially through the management of emissions. The policy applies to all companies in the Componenta Group, and each person at Componenta is responsible for complying with and promoting the principles described in the QEHS policy in accordance with their job description. In its QEHS policy, Componenta commits to maintaining third-party certified quality (ISO 9001), environmental (ISO 14001) and occupational safety systems (ISO 45001) in all its production units. The policy is available electronically to all personnel. Componenta's President and CEO has approved the QEHS policy, and the Group's Corporate Executive Team, as the highest body, is responsible for the practical implementation of the policy and for monitoring the need for changes.

Both foundries have monitoring plans related to their environmental permits, the aim of which is to determine how the monitoring of the units' emissions is carried out. Monitoring plans determine, among other aspects, the measurement points for emissions into the air, the parties responsible for the inspection of measuring devices, the schedule for third-party emissions measurements, the substances to be measured (particles and metals) and emission limits, as well as the emissions into the air that are determined through calculations. Continuous particulate measurement systems installed in filter plants serve as a basis for the continuous monitoring of emissions into the air from foundries. Emission levels potentially exceeding the emission limit value are detected through continuous measurement quickly, and corrective measures can be taken immediately. In accordance with the plans, the filter plants are checked at least weekly, and are covered by preventive maintenance. Business Unit Managers and ultimately the President and CEO of Componenta Castings Oy are responsible for the practical implementation of the monitoring plans and for monitoring the need for updates.

Actions and resources related to pollution

The management of emissions into the air is part of the continuous operation of the foundries in accordance with their environmental permits, which includes, for example, filter inspections, preventive maintenance, and emissions calculation and reporting to the environmental authorities, as well as the continuous monitoring

of operations and responding to any deviations. At the Karkkila foundry, one piece of the existing filtration equipment needs to be replaced through a replacement investment, and the investment project was launched in 2024. The new filtration equipment is expected to be commissioned during 2025. The new filtration equipment reduces the particulate emissions of the foundry and thus positively affects the air quality in the area.

Targets related to pollution

At the end of 2024, Componenta did not have longterm targets related to pollution, but the general objective is to comply with the emission limit values set in the environmental permits for foundries. The effectiveness of measures and policies related to the mitigation of emissions into the air is monitored by means of an annual emissions calculation, which is based on emissions measurements made by an external party every three years as well as on the operation of the foundries. The amount of emissions into the air is reported annually to the environmental authorities. In addition to monitoring the annual amount of emissions, the operation of the filtration equipment is regularly monitored as part of normal production operations.

Pollution of air, water and soil

Componenta generates material emissions into the air only in its foundry operations. For foundries, the largest single emission is related to particles, but the reporting thresholds established in the E-PRTR (European Pollutant Release and Transfer Register) Regulation are not exceeded for any

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pollutant. Emissions of particles and metals from the foundries are reported annually to the environmental authorities as part of annual reporting. In its normal operations, Componenta has no material emissions into water or soil, and there were no exceptional situations during 2024 that would have resulted in material emissions into water or soil.

Information about calculation methods

The concentrations of particles and metals (including As, Cd, Cr, Cu, Hg, Ni, Pb, Zn defined by the E-PRTR regulation) in the off-gases of the foundries are analysed every three years in accordance with the environmental permits of the foundries, and the concentrations are used to calculate annual emissions based on the annual operation of the foundries. Particulate emissions in both foundries are below 5% and metal emissions mainly below 1% of the thresholds established in the E-PRTR regulation, and are therefore not reported in Componenta's sustainability statement. The most recent emissions measurements at the foundries were carried out in 2022. In connection with the 2022 measurements, additional measurements were conducted at the Pori foundry in relation to the new Smitheries and Foundries Industry BREF document that was under preparation. Of the substances/compounds listed in the E-PRTR regulation, volatile organic compounds, benzene, hydrochloric acid (HCl), hydrofluoric acid (HF), PAHs including anthracene and

naphthalene, nitrogen oxides (NOx) and carbon monoxide (CO) were measured from selected foundry off-gases. In addition to the aforementioned compounds, the compounds that may be present in foundry off-gases were identified based on the Smitheries and Foundries Industry BREF document (2024), taking into account the production methods used at Componenta's foundries. Based on the above, sulphur oxides (formed in the combustion of fuels), dioxins and furans (PCDD/F) were identified as possible compounds in the off-gases.

Sustainability statement

Hourly emissions (g/h) were determined for the analysed substances in connection with the additional measurements carried out at the Pori foundry in 2022. The annual emissions of these substances at the Pori foundry were calculated from the hourly emissions, and specific emissions of the substances (kg per tonne) were determined from the annual emissions based on the 2022 production volume. In principle, the Karkkila and Pori foundries use the same production methods and largely the same raw materials, and the assumption was made that the specific emissions of the Pori foundry correspond to the specific emissions of the Karkkila foundry with sufficient accuracy. The emissions of the Karkkila foundry for the substances analysed in the 2022 additional measurements were calculated based on the specific emissions and the Karkkila foundry's 2024 production volumes. For the Pori foundry, the emissions of these compounds were calculated based on the hourly emissions in 2022 and the actual production hours in 2024. The calculation method is estimated to involve a relatively high level of uncertainty.

PCDD/F emissions were calculated based on the highest PCDD/F concentration (0.0115 ng/Nm3) reported in the preliminary Smitheries and Foundries Industries BREF document, which corresponds to Componenta's production methods. PCDD/ Fs may be formed during iron melting, and foundry emissions were calculated based on the volumetric flow rates of off-gases form melting determined in connection with the 2022 emissions measurements. The calculation method is estimated to involve a relatively high level of uncertainty.

Sulphur oxide emissions were calculated based on 2024 fuel consumption (low-sulphur light fuel oil and LPG) and the amount of sulphur contained in the fuel, assuming that all the sulphur in the fuel is oxidised into sulphur dioxide during the combustion. The calculation method is not considered to involve a significant level of uncertainty.

In 2024, Componenta did not use such direct measurements, based on which the emissions of the compounds defined in the E-PRTR regulation could have been determined. Emissions measurements are carried out at Componenta in accordance with environmental permits every three years, which is why the results of the 2022 emissions measurements, which are representative of the latest data, were used in the calculation. The emissions data used as a basis for the calculation is produced by a third party.

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Resource use and circular economy

Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities, and the material impacts, risks and opportunities and their interaction with strategy and business model

Componenta's production and manufacturing processes are raw material-intensive, and in connection with the double materiality assessment, a material negative actual impact related to the use of raw materials and other inflows was identified for Componenta. Componenta continuously seeks to improve its production processes to reduce the consumption of materials and minimise the number of faulty components, which also reduces the relative consumption of raw materials. However, the procurement and production of raw materials and other inflows have an impact on the environment through energy consumption and the related greenhouse gas emissions, for example. In connection with the double materiality assessment, material positive actual impacts were also identified in relation to products (resource outflows) and waste. The return scrap iron generated as a by-product in the production processes of Componenta's foundries, as well as a large part of the foundry sand, is reused in the foundries' own processes, which reduces the generation of waste. Componenta also uses significant amounts of steel scrap in its foundry operations. More than 80% of all the waste generated in Componenta's production units is recycled or otherwise recovered. In addition, products/components manufactured by Componenta can be recycled as metal. Reusing waste in the company's own operations and recycling reduce the impacts of waste on the environment and the consumption of raw materials in own operations.

In addition, a financial opportunity related to products and services was identified in connection with the double materiality assessment. Optimising production processes and product design engineering can reduce the amount of waste generated and improve resource and energy efficiency, which has a direct impact on productionrelated costs. During the reporting period, there were no individual or specific material events related to the optimisation of production processes and product design engineering that had a material impact on Componenta's financial position, financial performance or cash flows. Furthermore, no significant risk was identified that a material adjustment would be made to the carrying amounts of assets and liabilities reported in the related financial statements during the next financial year. However, Componenta continuously optimises the efficiency of resource use in its production processes.

The materiality of resource use and the circular economy was assessed especially with regard to Componenta's own operations, and its upstream and downstream value chain were assessed at a general level. No new information was collected separately for the assessment, but the assessment was based on existing information about Componenta's own operations, as well as suppliers and the value chain in general. The assessment of impacts, risks and opportunities was supported by, for example, data on Componenta's procurement and the amount of recycled raw material used in its processes, as well as the recovery rate of the waste generated in the operations. In connection with the double materiality assessment, apart from the stakeholder survey, no separate consultations were organised with stakeholders or potentially affected communities.

The impacts and opportunity described above are related to Componenta's own operations in all its production units and are materially linked to Componenta's business operations and strategy. Componenta has specified sustainability as one of the focus areas for its current strategy period 2024–2026, which also covers resource use and the circular economy. The efficient use of materials and the quality of products have material impacts on Componenta's business, and these topics are carefully taken into account in decision-making. The material impacts and opportunity related to resource use and the circular economy have no impact on Componenta's business model.

Policies related to resource use and circular economy

In accordance with its QEHS policy, Componenta seeks to minimise its environmental impacts through, for example, the continuous development of high-quality operations and the management of

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recyclable side streams. In addition, in accordance with its Code of Conduct, Componenta seeks to increase the environmental friendliness of its production methods and processes, and to minimise the environmental impacts of its products throughout their life cycle. Componenta's QEHS policy is described in more detail on page 52, and the Code of Conduct is described in more detail on page 69. The policies do not specifically address the transition away from the use of virgin resources or the sustainable sourcing and use of renewable resources.

Actions and resources related to resource use and circular economy

In its daily operations, Componenta seeks to optimise the use of raw materials, and products are designed to be manufactured in such a way that the materials are used as efficiently as possible, for example. Simulation is used in the casting design of all new products. The main raw material used in the cast components manufactured by Componenta is largely steel scrap, which is a recycled material. The foundries also use the return scrap iron generated in the process as a raw material, and most of the sand used in production is recycled back into the process. The reuse of materials is a significant part of the casting process. Waste recovery is promoted in all production units as part of daily operations by sorting waste. Metals, slag, sand and dust generated in the production processes are suitable for recovery. Componenta is constantly trying to find new reuses for waste, and is exploring opportunities to reuse moulding sand. In addition to the daily

operations described above, Componenta always aims at the lowest possible amount of rejects in all its operations. The better Componenta succeeds in quality management, the fewer rejects are created, and the less raw materials, energy and resources are consumed. During 2024, Componenta did not take any individual material measures related to the use of resources and the circular economy, as no longterm targets have yet been set for the topic, and no action plans related to achieving targets have been drawn up.

Targets related to resource use and circular economy

At the end of 2024, Componenta did not have long-term targets related to the management or promotion of impacts, risks and opportunities related to resource use and circular economy. The effectiveness of measures and policies related to the use of raw materials and other inflows, as well as products and waste, is assessed, for example, through quantitative indicators, by monitoring the share of recycled metal in the main raw materials of the foundries, the share of production waste generated that is recovered, and the share of unsorted waste in the total amount of waste. The target level is set annually, and it is typically better than the previous year's relative level.

Resource inflows

Componenta's production processes are raw material-intensive, and in all production units, different metals form the largest single raw material category used in production. The main raw material

metals used in foundries are steel scrap and virgin pig iron. In addition, material raw materials and other inflows used in the foundries consist of sand, additives for sand preparation and core making, inoculants, alloying elements and auxiliary materials, steel sand, nitrogen and paint, as well as furnace lining materials. The machining and materials service units mainly process various steels and cast iron, and to a lesser extent aluminium, copper and other non-ferrous metals. Other material inflows used in production consist of various gases, grinding media, components used in assembly operations, metal fittings, machining fluids and steel granules. In addition, Componenta's production units use mainly wooden pallets and pallet collars as packaging materials, as well as smaller quantities of woodbased panels and covers, plastic film and other packaging materials such as plastic and metal strap and cardboard boxes. The majority of wooden packaging materials are purchased used. Water is also used in production in, for example, foundry processes, and in machining units in cutting emulsion and washing machines. In the units, the products are manufactured using production equipment that is suitable for the production needs, such as machining centres and foundry and forge furnaces, in addition to which various filtration equipment is used, for example. Equipment is replaced, and major improvements are made to own properties as necessary.

Of the raw materials included in the EU list of critical raw materials, Componenta uses copper (listed as a strategic raw material), silicon, magnesium,

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manganese and phosphorus, as well as small amounts of bismuth, strontium and the rare earths cerium and lanthanum in its production processes. In addition, other critical raw materials may be present in the main raw material metals.

Material inflows	2024
Main raw material metals and machined metals, t1	25,550
Other material production raw materials and inflows (excluding packaging materials), t	15,102
Packaging materials, t	2,166
Total material inflows, t	42,818

1 Excludes return scrap iron from the foundries' own production operations.

Recycled materials in material inflows	2024
Steel scrap, t1	12,013
Copper, t	72
Recycled packaging materials, t	1,613
Total recycled materials, t	13,698
Proportion of recycled materials of all material inflows, %	32

1 Excludes return scrap iron from the foundries' own production operations.

Biological materials are not used in the manufacture of Componenta products, but biological materials are used only as packaging materials. The proportion of sustainably sourced materials of all material inflows was 1 % in 2024. Componenta has defined sustainably sourced materials as packaging

materials made from wood that is obtained from responsibly managed and certified forests. In 2024, the wood used to manufacture sustainably sourced wood-based packaging materials was FSC or PEFC certified. The sustainably sourced packaging materials consist of reusable pallets, collars and plates, as well as custom-made boxes, which are reused in accordance with the cascading principle where possible.

Information about calculation methods

Only the raw material and other inflow categories directly used in production processes that represent more than 0.1 mass % of the total weight of the materials used in production processes are included in the information presented for material inflows; these raw material and other inflow categories are classified as material inflows for Componenta. Material raw material and other inflow categories exceeding the 0.1 mass-% limit were calculated separately for Componenta Castings Oy and Componenta Manufacturing Oy from the total weight of the company's material inflows.

For Componenta Castings Oy, the data has mainly been collected directly from the ERP system in masses, and reflect the amounts used. For the materials tracked through the number of used pieces, the average weight of the pieces was determined, from which the total weight of the pieces used was calculated. For materials whose usage volumes are not recorded in the ERP system, the data was collected from purchase invoices or weighed, and the data reflects the volumes acquired. The calculation assumed that the amount of material purchased during the year corresponds to the amount of use of that material during that year. The calculation is not considered to involve significant uncertainty.

For Componenta Manufacturing Oy, the data is mainly based on procurement volumes that were obtained from suppliers and purchase invoices or estimated. Some of the materials were weighed. Componenta Manufacturing Oy has numerous suppliers, and it was sought to find out the weights of the purchases made from the largest suppliers. From the data received, the weight of the entire material category was calculated proportionally. The calculation assumed that the amount purchased during the year corresponds to the amount of use of that material during that year. The calculations based on information obtained from suppliers as well as the used estimates are considered to be subject to relatively high uncertainty. The amounts collected from purchase invoices and weighed are not considered to be subject to significant uncertainty.

The reporting of reused and recycled materials takes into account the steel scrap used as the main raw material in the foundries, copper used in the foundries, as well as the second-hand pallets and pallet collars used as packaging materials in all the Group's units. The calculation of the usage volume of second-hand packaging materials is based on the information received from the companies supplying Componenta with pallets, pallet collars, plates and wooden boxes about the amount of wood-based packaging materials delivered as new. The quantities of all pallets, pallet collars, plates and wooden boxes used for packaging were collected from the ERP system or directly from the units and, depending on the unit, are based on the monitoring or estimation of the used amount. The amount of second-hand packaging materials used in the operations was calculated by deducting the amount of wood-based packaging materials purchased as new from the amount of all wood-based packaging materials used for packaging. In the calculation, it was assumed that all the materials acquired as new during the year would be used during the same year. Cardboard boxes are not taken into account in the calculation. The calculation method is considered to involve relatively high uncertainty.

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The calculation of the share of sustainably sourced biological materials is based on the information received from the companies supplying Componenta with pallets, pallet collars, plates and wooden boxes about the materials delivered as new and the certificates of the timber used in their manufacture. Only new pallets, pallet collars, plates and wooden boxes were taken into account in the calculation, and if the supplier could not indicate whether certified timber had been used in the manufacture, the packaging material was not considered to be sustainably sourced. The calculation method is considered to involve some degree of uncertainty.

Resource outflows

Products

Componenta is a contract manufacturer with a broad offering. It does not have its own products, but the products manufactured by Componenta are manufactured in accordance with customers' specifications. Componenta manufactures cast and machined metal components as well as forged blanks, welded structures, pipe products and metal sheet cuttings for its customers. The characteristics of the components manufactured by Componenta depend on the customer's needs and requirements and on the intended use of the product, and Componenta cannot affect their reusability or reparability, for example. As products manufactured by Componenta are made from metal, they are, in principle, recyclable and durable. However, the durability of the components manufactured by Componenta depends on the requirements set by the customers for the products. Componenta seeks to optimise the use of raw materials in its own production, and the most efficient use of materials is taken into account in the design of components.

Componenta manufactures components from recyclable metals. Some of the components supplied to customers have undergone an assembly phase at Componenta's production unit, in connection with which, for example, seals and filters can be added to the component. However, the weight of these non-metal components is small compared to the total weight of the product. Most of the packaging materials used by Componenta are recyclable. The proportion of recyclable content in Componenta's products is 100 %, and the proportion of recyclable content in the packaging materials used by Componenta is 99 %.

Waste

The most significant waste streams generated in Componenta's operations consist of metal waste (generally a non-hazardous waste fraction), sand formed at the foundries (non-hazardous waste), filter dust (hazardous and non-hazardous waste, contains metals) and furnace slag (non-hazardous waste, contains metals), as well as spent cutting emulsion formed in machining units and the water used in washing machines (hazardous waste fractions). The metal and sand by-products formed in the foundries are used directly in own production processes as raw materials. According to waste analyses, the waste fractions containing metals contain small amounts of some of the substances on the EU list of critical raw materials; mainly magnesium and manganese, as well as copper, which is listed as a strategic raw material.

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Parent company financial statements

Waste	2024
Total waste, t	16,464
Total waste recovered, t	13,660
Of which non-hazardous waste
Preparation for reuse, t	0
Recycling, t	9,934
Other recovery operations, t1	3,386
Of which hazardous waste
Preparation for reuse, t	0
Recycling, t	9
Other recovery operations, t1	331
Total waste delivered for disposal, t	2,804
Of which non-hazardous waste
Incineration without energy recovery, t	0
Landfill, t	2,098
Other disposal operations, t	0
Of which hazardous waste
Incineration without energy recovery, t	1
Landfill, t	601
Other disposal operations, t	104
Total non-recycled waste, t	6,520
Share of non-recycled waste, %	40
Radioactive waste, t	0

1 Includes energy recovery

Information about calculation methods

Componenta does not carry out waste treatment operations, but all waste is delivered for further recovery or disposal. Information about the amount of generated waste as well as the recovery and disposal methods used were collected directly from the waste management companies used by Componenta and estimated for the Vantaa office. For a large part of the waste, the data could be collected directly in a format that supports reporting in accordance with the Corporate Sustainability Reporting Directive. For the remaining waste fractions, the data were submitted in accordance with the recovery and disposal methods defined in the Waste Decree (978/2021), based on which they were further divided into waste recovery and disposal methods in accordance with the requirements of sustainability reporting. In the division, a conservative approach was followed; that is, the worst applicable option in the waste hierarchy was chosen if the final method of recovery or disposal of the waste fraction could not be determined with sufficient certainty from the information received. For metal waste delivered for recycling from the foundries, it was assumed that all of the metal would be recycled. Non-recycled waste includes waste directed for incineration (including energy recovery) and backfilling operations as well as, landfill or other disposal. The calculation method is not considered to involve significant uncertainty.

The proportion of recyclable content in Componenta's products and packaging materials was calculated from the total weight of manufactured products and used packaging materials. For cast products, the weights of the products can be collected directly from the production systems. For other products, the weight was calculated by deducting the amount of metal waste generated in the manufacture of these products from the amount of metal purchased. The total weight of the products takes into account the weight of the parts to be added to the component in the assembly. All metal parts of finished products are considered to be recyclable. With regard to packaging materials, recyclable materials are defined as wood-based pallets, collars, plates and covers, as well as plastic film, for the calculation.

Availability and price of raw materials and components

In connection with the double materiality assessment, an entity-specific material risk related to the use of resources and the circular economy was identified for Componenta in relation to the availability and price of raw materials and components. The Russian attack on Ukraine and the sanctions imposed on Russia, as well as the conflicts in the Middle East, if spreading more widely, may affect the availability and price of the right-quality raw materials. For example, due to a potential decrease in the availability of steel scrap, the foundry business may have to switch to a more extensive use of pig iron, which would have a negative impact on production costs. The global challenges in the availability of certain components of Componenta's customers may lead to production disruptions in Componenta's downstream value chain and affect Componenta's sales volumes in the short term. The cost risk in Componenta's own operations is mainly managed through index-based price agreements for the main raw materials. The availability risk is managed by ensuring that there are always several potential suppliers of raw materials and components, and the operations are not carried out relying on just one critical supplier. During the reporting period, there were no individual or specific material events related to the availability and price of raw materials and components that had a material impact on Componenta's financial position, financial performance or cash flows. Furthermore, no significant risk was identified that a material

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Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

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adjustment would be made to the carrying amounts of assets and liabilities reported in the related financial statements during the next financial year.

The risk related to the availability and price of raw materials and components concerns the whole of Componenta's business, as well as its upstream and downstream value chain. The topic is materially linked to Componenta's business model, and the minimisation of the related risks is one of the cornerstones of Componenta's strategy. Componenta does not seek to make changes to its business model on the basis of risks related to the availability or price of raw materials and components, but takes the risk into account and seeks to manage it in the company's daily operations. The availability and price of raw materials can affect Componenta's value chain through, for example, Componenta's supplier selection. Availability and price factors are taken into account as an integral part of procurementrelated decision-making.

Policies

Componenta has drawn up a procurement policy that guides decision-making related to procurement at Componenta. The purpose of the policy is to outline Componenta's procurement ambition and create a framework for responsible

and cost-effective procurement, to support the implementation of the Group's strategy and the achievement of its business targets, and to ensure customer satisfaction. The procurement policy applies to all Componenta's units and functions. In accordance with its procurement policy, Componenta focuses on ensuring cost-effectiveness, quality and availability in procurement in all market situations and conditions. Procurement decision-making is based on the Group's governance principles. In addition, all the companies in Componenta's supply chain are required to adhere to Componenta's Code of Conduct for suppliers and subcontractors. The President and CEO of the Componenta Group has approved the procurement policy and is responsible, as the highest body, for the practical implementation of the guidelines and for monitoring the need for changes.

Actions

One of the most material factors for the Group's business is the uninterrupted availability of certain raw materials, such as steel scrap, pig iron, structural steel and aluminium at competitive prices. Because of increased geopolitical tensions, the availability of raw materials and other materials continues to involve uncertainties in Componenta's operational activities. Ensuring the

availability of raw materials and other materials is part of Componenta's daily operations. During the reporting period, Componenta made continuous updates to its demand forecast and optimised its stock levels to meet longer-term demand, among other measures. In addition, Componenta closely monitored the situation of its suppliers, as well as changes in the market, and took the necessary measures to ensure the functioning of its supply chains. The cost risk associated with raw materials in Componenta's operations is mainly managed through index-based price agreements, based on which the sales prices of products were updated for the following quarter in response to changes in the prices of raw materials. The cost risk associated with non-index-based raw materials is managed through price increases, if necessary.

Targets and metrics

At the end of 2024, Componenta did not have longterm targets related to the availability and price of raw materials and other materials. Targets have not been determined, as it is not considered possible to set targets of this type in relation to the topic. The objective of Componenta's related actions is to secure the profitability of the business, which the company regularly monitors.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Social information

Own workforce

Material impacts, risks and opportunities and their interaction with strategy and business model

Componenta's own workforce consists of employees (personnel), leased labour and self-employed contractors (together "non-employees"). In connection with the double materiality assessment, three material positive actual impacts related to personnel and one material negative actual impact related to personnel (incl. non-employees) were identified. Material risks or opportunities related to own workforce were not identified. The positive impacts of Componenta are related to gender equality, social dialogue and collective bargaining, as well as staff training and skills development. The negative impact concerns the relatively higher risk of occupational accidents related to production work compared with office work, for example. The information about Componenta's personnel presented in this sustainability statement covers all of Componenta's personnel, unless otherwise specifically stated. If the information covers leased labour and self-employed contractors in addition to the company's own personnel, this is mentioned separately.

Componenta pays all its employees the same salary for work of equal value. Promoting gender pay equality has a positive impact on the livelihood of female employees in particular and on Componenta's employer image. In connection with social dialogue, Componenta, as an employer, engages in regular discussions with employee representatives. Comprehensive regular dialogue with employees' representatives has a positive impact on employees' rights at work and contributes to Componenta's employer image. Where possible, Componenta provides its personnel with training and advancement opportunities. The personnel are offered both external training and internal training provided directly by Componenta. Development aspirations and career plans and goals, as well as how to achieve them, are discussed as part of performance reviews. The training provides the personnel with an opportunity for professional development and multi-skilling, and contributes to enabling a skilled workforce for Componenta.

The positive impacts described above affect all of Componenta's personnel, regardless of whether the employees are in a salaried position or work in production. Negative occupational health and safety impacts particularly affect the workforce in production (employees and non-employees). All impacts related to Componenta's workforce are actual impacts. In terms of positive impacts, the materialisation of the impacts is considered to be continuous. Severe negative occupational health and safety impacts are isolated cases and occur in potential accident and injury situations. In terms of negative impacts, the aim is to avoid any impacts at all. Componenta does not have any operations involving a risk of forced labour or child labour.

All impacts related to Componenta's personnel (incl. non-employees) are related to the company's strategy and Componenta's own operations. One of the focus areas of Componenta's strategy period 2024–2026 is personnel. Componenta's personnel play a key role in the company's value creation, smooth production and the production of highquality products. Personnel are involved in the planning and development of business operations and strategy through strategy workshops, for example. Continuous performance management, active dialogue and regular performance reviews, among other measures, play a key role in ensuring the implementation of the strategy. The occupational health and safety impacts are directly related to Componenta's business model as an industrial manufacturer, where the importance of occupational health and safety aspects is emphasised. Componenta is not expected to make any changes to its business model or value chain on the basis of the material impacts related to its workforce identified in the context of the double materiality assessment. If necessary, impacts on personnel and especially on occupational health and safety aspects are taken into account in decision-making.

In connection with the double materiality assessment work, all employees and nonemployees performing production work have been defined as workforce subject to material negative impacts. The data used as the basis for the double materiality assessment was based on the data

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Notes to the consolidated financial statements

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collected through daily dialogue and operational management at Componenta.

Policies related to own workforce

Componenta's Code of Conduct, among others, describes the operating principles used by Componenta in relation to working life and human rights. The Code of Conduct states that Componenta undertakes to comply with local labour law, collective agreements and legislation on human rights and equality in all its operations. In accordance with Componenta's values and management principles, all decisions regarding recruitment, remuneration and promotion are based solely on the competence and achievements of each employee. In accordance with its Code of Conduct, Componenta does not tolerate discrimination in its operations. Componenta has own operations only in Finland, where the legislation unambiguously prohibits discrimination based on gender, gender identity, age, origin, nationality, language, religion, belief, opinion, political activity, trade union activity, family relations, health, disability, sexual orientation or other personal reason. Componenta's policies related to own workforce are broadly in line with the universal declarations and conventions on human rights, including the UN Guiding Principles on Business and Human Rights. The Code of Conduct and the universal declarations and agreements that Componenta is committed to supporting and respecting are described in more detail on page 69. Componenta's Code of Conduct does not specifically deal with human trafficking,

forced labour or the use of child labour, but Componenta has own operations only in Finland, where human trafficking, forced labour and the use of child labour are prohibited by law. Componenta has no specific policy commitments regarding inclusion or positive action in favour of persons belonging to particularly vulnerable groups. The principles presented in the Code of Conduct are not implemented using methods different from the implementation of other Componenta's policies.

In addition to the Code of Conduct, Componenta has drawn up a human resources (HR) policy that applies to the whole of the Componenta Group and its workforce. The objective of the HR policy is to ensure that the workforce is competent and committed to Componenta's financial performance and the targets determined by the company. The HR policy is available electronically to all of Componenta's personnel (incl. non-employees). The President and CEO of Componenta has approved the HR policy, and the members of Componenta's management are responsible for the implementation of the principles described in the HR policy in their respective areas of responsibility. The policy sets out Componenta's general principles regarding human resource management, resource allocation, competence development, salaries and incentives, and well-being. In its HR policy, Componenta undertakes to treat everyone equally and in accordance with the principles of equality, to provide employees with a fair salary system, to ensure the expertise and development of the workforce through training and by other means,

to respect the freedom of association of employees, labour law and collective agreements, to engage in a continuous dialogue with employee representatives, and to provide a working environment where occupational safety and well-being is developed proactively. In addition, through its QEHS policy, Componenta undertakes to ensure a safe working environment through training and guidance, for example, to develop safe working conditions in accordance with the Zero Accidents principle, and to use risk observation, identification and minimisation processes in the continuous improvement of operations. Componenta's QEHS policy is described in more detail on page 52.

In addition to the policies described above, Componenta has a number of methods in place to monitor that the company respects the rights of personnel (incl. non-employees) in its operations and engages in dialogue with them. The most important mechanism is daily management practices, as well as the responsibility of supervisors in ensuring the realisation of the rights of personnel (incl. nonemployees) and, if necessary, in taking concerns forward. In addition, Componenta has a thirdparty certified occupational health and safety management system (ISO 45001) that applies to all Componenta's production units and guides the dayto-day operations of these units. Componenta also provides its personnel (incl. non-employees) with a whistleblowing channel for reporting any human rights violations. The mechanisms for dialogue with the personnel (incl. non-employees) are described in section Processes for engaging with own workers

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and workers' representatives about impacts. Componenta has not drawn up specific guidelines for correcting potential negative human rights impacts, as the risk of human rights violations related to its workforce is considered to be very low.

Componenta has drawn up a guideline in case of harassment or inappropriate behaviour in the workplace. The purpose of the guideline is to increase the personnel's (incl. non-employees) awareness of harassment, prevent its occurrence and provide instructions for situations in which harassment and inappropriate behaviour may have occurred. The guideline prohibits all harassment and inappropriate behaviour in the workplace and in work tasks, provides examples of harassment and, on the other hand, describes what harassment is not. The guideline applies to all Componenta Group workforce. The guideline is available electronically to all Componenta workforce and is included in induction training for new employees and non-employees. The guideline has been approved by Componenta's President and CEO and OHS manager. The OHS manager is responsible for the practical implementation of the guideline.

Processes for engaging with own workers and workers' representatives about impacts

Componenta engages in continuous dialogue with its personnel and their representatives through a number of channels. Examples of communication channels and processes include daily management, annual personnel surveys and performance reviews, as well as the implementation of development

measures determined in accordance with them, dialogue with employee representatives at least quarterly, and regularly organised reviews by the President and CEO and the Business Unit Managers. In addition, Componenta has a whistleblowing channel and an occupational safety observations reporting channel, through which non-employees can also submit reports. Componenta also provides its personnel with information through its internal websites and info TV system in production facilities (also for non-employees), as well as newsletters. The objectives of the interaction are described on page 22.

Based on the results of the personnel surveys carried out annually at the end of the year, the personnel of each site or function will jointly consider what aspects they would like to develop in the site or function. Based on the aspects to be developed, a development plan is drawn up for the year following the personnel survey. A person in charge is assigned for each measure to be carried out in accordance with the development plan, and a time frame is determined within which each measure should be implemented. Each production unit has an occupational health and safety group, which is part of the Componenta Group's occupational health and safety committee. The committee meets quarterly to discuss topics such as the need for safety training and other issues related to occupational health and safety, and to separately agree on matters to be brought to the attention of the senior management to be discussed or resolved. In the occupational health

and safety committee, employees are represented by occupational health and safety representatives.

Issues affecting the personnel are discussed with employee representatives, and, where possible, the views of the employee representatives are taken into account in decision-making. Componenta is bound by collective agreements by Technology Industries of Finland concerning workers, salaried employees and senior salaried employees, as well as the Cooperation Act, within the framework of which dialogue with employee representatives takes place. Personnel views and expectations that have come to the attention of the management through other channels and continuous due diligence work, such as daily management, occupational safety observations made by the personnel, and monthly reviews at the units, are taken into account in the company's decision-making as far as possible. Ultimately, the President and CEO has the operational responsibility to ensure that interaction with the personnel is carried out, and that the information collected through this interaction is taken into account in Componenta's operating methods.

Processes to remediate negative impacts and channels for own workers to raise concerns

Componenta's personnel (incl. non-employees) can bring possible shortcomings and related concerns encountered at work directly to any supervisor, who either intervenes in the reported concern or takes the matter forward for discussion. Any grievance or concern can also be raised through Componenta's

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Sustainability statement

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Notes to the consolidated financial statements

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occupational health and safety observation and accident and near-miss reporting platform, or through an anonymous whistleblowing channel maintained by a third party. The reports brought to Componenta's attention through these channels are processed in accordance with the company's operating procedure that is best suited to the situation. Separate procedures have been created for reports submitted through the whistleblowing reporting channel, for processing occupational health and safety observations and reported accidents and near misses, and for processing reports related to harassment and inappropriate behaviour. The reported cases are investigated in accordance with these procedures, and any necessary corrective measures are taken as soon as possible. The effectiveness of the measures taken is assessed, as needed, by reviewing the matter a certain amount of time after the implementation of the measure. The aforementioned channels cover the whole of the Componenta Group in the same format, and are available to all Componenta personnel (incl. non-employees) via internal and/or external websites. The protection of persons who

have submitted reports through the whistleblowing channel is described on page 69.

New employees and non-employees are familiarised with the reporting practices at the beginning of their employment relationship/work tasks, and the use of the whistleblowing channel is part of the annual Code of Conduct training, which is organised for all employees and, where applicable, for non-employees. Based on this, Componenta estimates that its workforce is aware of different ways of submitting reports and the related processes, and that these practices serve the workforce effectively when needed.

Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

The most significant measures taken by Componenta during the reporting period, in addition to everyday measures, related to occupational health and safety and well-being at work are presented in the following table. In addition, as part of day-to-day operations, Componenta develops measures to minimise negative impacts based on occupational accident and near-miss reports, personnel initiatives, safety observations, hazard identification and risk mapping, and information collected in connection with safety walks in accordance with separately defined processes. The phases of these processes include the definition of the necessary measures, their implementation and the monitoring of the effectiveness/efficiency of the measure carried out. In determining appropriate measures, Componenta uses, among other means, the information obtained in connection with workplace surveys carried out by the occupational health care provider and inspections carried out by occupational health and safety authorities, as well as information obtained directly from the workforce through various channels.

Parent company financial statements

Action	Expected outcomes	Scope of application	Time horizon	Tracking and assessing effectiveness
Measures to prevent and mitigate material negative impacts
Development and implementation of visual safety training, induction and work guidance materials	The purpose of the project is to promote safety culture and ensure that the personnel (incl. non-employees) understand safety materials regardless of their background, and further reduce the number of occupational accidents.	Own operations, particularly production	2024–2025	The effectiveness of the measure is assessed through the monitoring of the number of accidents occurring in production operations.
Development and implementation of a model for continuous improvement in occupational health and safety activities	The purpose of the project is to combine the strengths of different areas of the organisation to improve occupational safety, and to involve and engage the whole organisation in the development of occupational safety.	Own operations, particularly production	2024–2025	The effectiveness of the measure is assessed by monitoring the number of proactive safety observations, the speed of their processing as well as communicating about them.
Actions to create positive impacts
Provision of personnel benefits for sports (including a bicycle benefit), culture and/or well-being	The personnel benefits related to sports, culture and well-being support the personnel's recovery in their free time and contribute to the personnel's earnings.	Own operations, the Componenta Group as a whole	2024, continuous	The effectiveness of the measure is indirectly monitored through statistics on the use of sports and culture benefits. The purpose of the monitoring is to ensure that everyone uses the benefit at least to some extent.
Provision of extended occupational health care to the personnel in accordance with the occupational health care action plan	Extended occupational health care speeds up the patient's access to examinations and the start of treatment.	Own operations, the Componenta Group as a whole	2024, continuous	The effectiveness of the measure is monitored, for example, by means of the number and duration of sickness absences.

Sustainability statement

In addition to the measures described above, Componenta has taken corrective measures during 2024 in connection with occupational accidents and occupational health and safety observations. The required measures are identified as part of the investigation, after which they are assigned the necessary resources and an implementation

schedule within which the measure must be implemented.

Occupational health and safety are of primary importance to Componenta. Production work is associated with a relatively higher risk of occupational accidents compared with, for example, office work. Componenta seeks to minimise the risk of occupational accidents and the impacts related to the possible materialisation of the risk through, among other means, comprehensive induction to work tasks and working conditions, regular risk assessments and continuously taking measures in accordance with the action plans related to

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

occupational safety. At Componenta, supervisors constantly monitor the working environment, the state of the work community and the safety of work practices, as well as the safety and health of the workforce, so that everyone can do their work safely. Occupational hazard identification and risk assessment are carried out on a regular basis to identify hazards arising from work, working hours, work facilities and other working environment and working conditions. The main objective is to eliminate hazards and adverse factors altogether or, if this is not possible, to replace the methods causing the hazard or adverse factor with less hazardous or less harmful methods. The personnel (incl. non-employees) are trained and familiarised with the work, workplace, working conditions, work and production methods, work equipment and its correct use, as well as safe working practices, especially before starting a new job or task, or when work tasks change, and before introducing new work equipment and working or production methods. In addition, the personnel (incl. nonemployees) are encouraged to make preventive observations to identify in advance any adverse conditions or unsafe working practices before they cause accidents.

Componenta has a QHS manager appointed as the person responsible for occupational health and safety at the Group level. In addition, the foundries have been assigned occupational health and safety officers to support the QHS manager. Business Unit Managers and supervisors are responsible for the implementation of occupational health

and safety in everyday operations. Componenta has an HR function, for which the HR manager is responsible at the Group level, and that promotes the development of personnel well-being and competence.

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

At the end of 2024, Componenta did not have long-term targets related to the management or promotion of the workforce-related material impacts. Componenta monitors the effectiveness of measures related to occupational health and safety through the number of proactive safety observations and occupational accidents, as well as the accident frequency rate (quantitative indicators), for example, and the effectiveness of the measures related to work ability and wellbeing through the results of personnel surveys (qualitative and quantitative indicators), sickness absences (quantitative indicators) and the number of enquiries and visits to occupational health care (qualitative and quantitative indicators). The target level is set annually, and it is typically better than the previous year's level.

Characteristics of the undertaking's employees

Componenta's workforce consists mainly of employees under an employment contract, and the forms of employment used by Componenta are permanent, fixed-term ("temporary"), full-time and part-time. Permanent full-time

employment relationships are prioritised. Fixedterm employment relationships are used when necessary, when there are clear grounds for fixedterm employment (e.g. family leave or student thesis work). In exceptional cases (e.g. family leave and retirement), part-time employment relationships are used, if necessary. During 2024, 43 employees left the Componenta Group, and the average employee turnover rate was 7%. In 2024, Componenta had personnel of its own only in Finland.

2024	Female	Male	Total
Number of employees1	90	591	681
Number of permanent employees	89	577	666
Number of temporary employees	1	14	15
Number of non guaranteed hours employees	4	13	17

¹ Employees under an employment contract only. The total number of employees in 2024 is presented also in Note 4 to the consolidated financial statements.

Information about calculation methods

All figures in this section correspond to the number of employees (head count) on the last day of the reporting period. As a result of the business transaction with Fortaco Group, the number of employees increased by 62 on 1 October 2024. Otherwise, there was no significant variation in the number of employees during the reporting period. The employee turnover rate takes into account those who have resigned, been dismissed or have retired during the reporting period in relation to the number of employees at the end of the year (31 December

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Sustainability Consolidated financial statements

Notes to the consolidated financial statements

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2024). In calculating the employee turnover rate, the employees transferred with the operations acquired from Fortaco Group were not considered in the denominator, to avoid distortion of the figure describing the employee turnover rate. The information presented above was collected from the digital systems of the HR function. The data collection methods are not considered to be subject to significant restrictions, and no significant assumptions were made in the data collection.

Characteristics of non-employee workers in the undertaking's own workforce

Componenta uses leased labour when necessary. The use of leased labour is justified in situations in which additional workforce is needed for a short period of time or urgently, and in situations in which the predictability of the continuation of work is poor due to seasonal fluctuations in customer needs, for example. In addition to Componenta's own employees and leased labour, the workforce includes self-employed contractors. Leased labour work mainly on production tasks. On 31 December 2024, ten (head count) leased labour / selfemployed contractors worked at Componenta. The number of leased employees varies during the year depending on the workload.

Information about calculation methods

The number of leased employees / self-employed contractors includes employees supplied by third-party companies engaged in employment activities (leased labour), as well self-employed contractors working for Componenta. Data on the number of leased employees is collected directly from the production units. No significant restrictions are considered to be associated with the data collection methods, and no significant assumptions were made in the data collection.

Collective bargaining coverage and social dialogue

statement

The collective agreements binding on Componenta are collective agreements concerning workers, salaried employees and senior salaried employees covered by Technology Industries of Finland. In addition, Componenta's personnel, regardless of their duties, have the right and opportunity to select an employee representative to represent them in the dialogue with the employer and in other matters related to employment relationships. The previous collective agreements expired at the end of 2024 before the new collective agreements entered into force. In a non-contractual state, the employment terms of the collective agreement remain in force with an aftereffect. The provisions of the previous collective agreement are complied

with until the new collective agreement has been agreed. In 2024, Componenta had employees only in Finland. Componenta does not have agreements with its personnel for representation by a European Works Council, a Societas Europaea (SE) (Societas Europaea) Works Council, or a Societas Cooperativa Europaea (SCE) Works Council.

Information about calculation methods

In Finland, all companies operating in a particular sector must comply with a general collective agreement applicable to that sector. The collective agreements of Technology Industries of Finland are related to Componenta's operations, and cover all employee groups working for Componenta. All Componenta personnel work in locations where employees have representation. The calculation is not considered to be subject to significant restrictions, and no significant assumptions were made in the collection of data.

2024	Collective bargaining coverage		Social dialogue
Coverage rate	Employees – EEA	Employees – Non-EEA	Workplace Representation (EEA only)
0–9%
20–39%
40–59%
60–79%
80–100%	Finland		Finland

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Health and safety metrics

Componenta has a third-party certified occupational health and safety management system (ISO 45001) that covers all the activities of Componenta Castings Oy and Componenta Manufacturing Oy and their entire workforce. Componenta Corporation's operations and workforce are not covered by an occupational health and safety management system. 97 % of Componenta's workforce (calculated based on the head count on 31 December 2024) are covered by a certified occupational health and safety management system. The following table presents the key figures for occupational health and safety for the reporting period.

Information about calculation methods

According to Finnish legislation, work-related accidents also include accidents occurring during commuting. Such incidents, if any, are included in the number of lost days, but not in the number or frequency of work-related accidents. The lost time incident frequency was calculated with the formula Number of lost time injuries x 1,000,000 / Total hours worked during the reporting period. The data used as the basis for the above figures and in the calculation was mainly collected from the digital systems of the QEHS function. A small share of the hours worked was estimated. The number of cases of recordable workrelated ill health is based on reports submitted by personnel to Componenta, as a result of which the reported number cannot be guaranteed to include all cases in the category. Otherwise, the data collection methods in this section are not considered to be subject to significant limitations or assumptions.

Metric	2024
Number of recordable work-related accidents1	32
Lost time incident frequency (LTIF)1	34
Number of cases of recordable work-related ill health2	0
Number of days lost to work-related injuries and fatalities2	226
Number of work-related fatalities3	0

¹ Entire workforce. Includes work-related accidents resulting in an absence of at least one day in addition to the day of the accident. The figures do not include work-related accidents that may have occurred to external performers of work on Componenta's sites; the number of such accidents is monitored separately.

² Componenta's employees only. The number of days lost to workrelated injuries (and fatalities) includes the days from the first full day of absence to the last day of absence (including weekends and bank holidays).

³ Entire workforce and subcontractors.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Governance information

Business conduct

Description of the processes to identify and assess material impacts, risks and opportunities

In connection with the double materiality assessment, corporate culture was identified as a governance-related material positive potential impact for Componenta. In addition, governancerelated material entity-specific financial risks related to cybersecurity and increasing environmental legislation were identified. The assessment of governance-related impacts, risks and opportunities was mainly based on Componenta's business model, the geographical locations of its own operations and those of the most significant tier one suppliers and customers.

Componenta is a contract manufacturer with a broad offering. It does not have its own products, but the products manufactured by Componenta are manufactured in accordance with customers' specifications. Componenta's business model is described in more detail in Note 1 to the consolidated financial statements, and Componenta's strategy and value chain on page 21 of the annual review. All Componenta's production units are located in Finland. The majority of Componenta's direct suppliers are European, and the majority of its customers are companies operating globally or in Europe.

Componenta continuously seeks to improve and assess its corporate culture to provide its workforce with meaningful and safe working conditions and develop well-being at work in its own operations. Componenta's business is labour-intensive, and the workforce plays a key role in Componenta's value creation, production flow and manufacture of high-quality products. A good corporate culture has a positive impact on Componenta's employer image and facilitates the availability of workforce. In addition, a good corporate culture has a positive impact on business efficiency and, as a result, indirectly on the benefits that Componenta can offer its employees. The personnel are one of Componenta's focus areas for the 2024–2026 strategy period. By investing it its employees, Componenta seeks to contribute to the materialisation of the positive impacts related to corporate culture. Whenever possible, impacts on corporate culture are taken into account in decisionmaking. The development of corporate culture does not have a direct impact on Componenta's business model or value chain.

Business conduct policies and corporate culture

In line with its vision, Componenta aims to be the preferred overall supplier of a wide range of products to its customers. The values defined by the company lay the foundation for its corporate culture and guide all its operations and decisionmaking. The company's values are openness, honesty and respect. Openness means that the company and its personnel are open to new

things, development and change – and therefore to the continuous improvement of its operating methods. Honesty means that the company and its personnel are honest to themselves and others and keep their promises. Respect means that cooperation with colleagues, supervisors, employees, customers and other partners is based on trust and mutual respect. To identify, assess, manage and/or remediate material impacts, risks and opportunities, Componenta has a Code of Conduct, a Code of Conduct for suppliers and subcontractors, and a risk management policy. Training on the Code of Conduct is provided annually for all employees, covering all aspects of the guidelines.

The Code of Conduct contains the company's operating principles related to corruption and bribery, for example. The procurement and sales organisations in particular, as well as the management of the units and the company play a significant role in the fight against corruption and bribery, and they are also considered to be in the most vulnerable position to face bribery and corruption. In Componenta's view, however, even such operations do not involve a significant risk of corruption and bribery, as the company's business operations are mainly focused in Finland.

Componenta conducts an annual personnel survey as an important part of its corporate culture assessment. Based on the results of the survey, the sites select their own development areas to improve the employees' ability to cope and thrive

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Notes to the consolidated financial statements

Parent company financial statements

at work, and to develop and promote the company's corporate culture. Dialogue between the Group's management and employees' representatives is also an important channel for developing and promoting corporate culture. In addition, there is continuous dialogue between the management and the personnel at the sites.

Componenta has a whistleblowing channel maintained by a third party for reporting risks related to the company's operations that may affect people, the company, society or the environment. The channel is available on the company's external website. It is therefore also possible for stakeholders other than the employees of the company to report anonymously any grievances and potential misconduct related to the company's operations. The company has drawn up instructions, or whistleblowing guidelines, for processing reports. The guidelines describe when and how reports should be submitted, and how the investigation should be conducted. In accordance with the whistleblowing guidelines, anyone reporting genuine suspicion will not be at risk of losing their job and will not suffer any consequences or personal harm as a result of the report. The whistleblowing guidelines are based on the EU General Data Protection Regulation (EU 679/2016), the EU Whistleblower Directive (EU 2019/1937) and national whistleblowing legislation.

The annual Code of Conduct training for Componenta's employees includes instructions on submitting reports. It is always possible to

submit a report anonymously, and all persons submitting reports are protected in accordance with the company's whistleblowing guidelines. All reports to the whistleblowing channel are reviewed promptly and impartially by the person(s) responsible for Componenta's legal and/or HR matters and independent of the reported issue. Each person processing reports is provided with the training necessary for their task. Apart from the whistleblowing guidelines, Componenta has not drawn up separate procedures for investigating corruption, bribery and other disruptions related to business conduct, but all such cases are investigated in accordance with the whistleblowing guidelines.

Policies

Componenta's Code of Conduct aims to describe the company's operating methods and generally accepted practices, as well as the company's commitment to compliance with laws and regulations. The Code of Conduct applies to all employees of the Componenta Group, regardless of their position or duties, and everyone is responsible for promoting the principles defined in the Code. The Code of Conduct applies throughout the Group and relates to all material impacts, risks and opportunities of the company. The Code of Conduct is openly available on the company's external website. The Code of Conduct covers the following topics: compliance with laws, other regulations and guidelines; working life and human rights; corruption, bribery, conflicts of interest and political activities; the environment; the exchange of information between competitors; the processing

of confidential information, insider information and communications; the company's assets; the company's suppliers and subcontractors; and whistleblowing. Through its Code of Conduct, Componenta undertakes to support and respect the UN Universal Declaration of Human Rights, the UN Guiding Principles, the OECD Guidelines for Multinational Enterprises, the ILO core conventions, the UN Declaration on the Rights of the Child, and the UN Convention against Corruption. Componenta's Board of Directors has approved the Code of Conduct, and the Corporate Executive Team, as the highest body, is responsible for the practical implementation of the guidelines and for monitoring the need for changes.

In addition to the Code of Conduct, Componenta has drawn up a Code of Conduct for suppliers and subcontractors, and requires all suppliers and subcontractors to comply with the Code. Key aspects of the Code include legal compliance, employees' rights and human rights, environmental responsibility and responsible business practices, and reporting violations. Componenta requires its suppliers and subcontractors to support and defend internationally accepted rules, such as the UN Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, the UN Convention on the Rights of the Child, the ILO core conventions, and the UN Convention against Corruption. The Code of Conduct for suppliers and subcontractors is openly available on the company's external website for all stakeholders. As a rule, the

Board of Directors' report

Sustainability statement

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Notes to the consolidated financial statements

Parent company financial statements

Code of Conduct is submitted to suppliers and subcontractors in connection with the contract process. Componenta's President and CEO has approved the Code of Conduct for suppliers and subcontractors, and the Corporate Executive Team, as the highest body, is responsible for the practical implementation of the guidelines and monitoring the need for changes.

Componenta has drawn up a risk management policy to be followed throughout the Group, the purpose of which is to identify the material risks and uncertainties concerning the company in all its operations. The risk management policy is based on the Enterprise Risk Management (ERM) – Integrated Framework published by COSO (Committee of Sponsoring Organizations of the Treadway Commission). The risk management policy determines the company's risk management organisation, objectives and framework, the ERM process, and the company's risk model and risk assessment process. In accordance with the Group's risk management policy, risks are divided into four main categories: operational risks, financial risks, strategic risks and accident risks. The Board of Directors has approved the risk management policy, and the Corporate Executive Team, as the highest body, is responsible for the practical implementation of the policy and for monitoring the need for changes.

Cybersecurity

At Componenta, information security covers all aspects of the organisation and is an integral part of everyday business operations, corporate security and risk management. Information security helps to ensure the continuity of business, delivery reliability, solidity, quality, competitiveness and the company image. In connection with the double materiality assessment, cybersecurity was identified as a material financial risk for Componenta. A cyberattack on industrial control systems can result in financial losses due to the harm caused to the business by the attack. When targeted at production ERP systems, an attack may lead to interruptions in production and thereby delays in customer deliveries and reputational damage. In addition, production interruptions may cause financial damage if invoicing is interrupted. Attacks on financial systems can also cause significant damage to business. Severe cyberattacks on Componenta's raw material suppliers may at worst lead to a temporary interruption of production at Componenta. Componenta ensures the implementation of comprehensive information security in its operations, especially through training and technical solutions. In addition, Componenta has specified sustainability as one of the focus areas for the 2024–2026 strategy period, the implementation of which includes investment in information security matters. Componenta does not consider it necessary to make changes to its business model on the basis of information security risks. Suppliers' information security capabilities are taken into account in decisionmaking related to the selection of suppliers. During the reporting period, there were no individual or specific material events related to cybersecurity that had a material impact on Componenta's financial position, financial performance or cash flows. Furthermore, no significant risk was identified that a material adjustment would be made to the carrying amounts of assets and liabilities reported in the related financial statements during the next financial year.

Policies

Componenta has drawn up an information security policy, as well as operating principles that support the policy, to address risks related to cybersecurity, among other aspects. The purpose of the information security policy is to establish the principles of the implementation of information security by setting objectives and guidelines for the development of information security, and by determining the minimum procedures and work instructions required in ensuring and maintaining information security. In addition, the information security policy contributes to creating a framework for responsible operation that brings added value to the company and strengthens the confidence of stakeholders (customers, shareholders, employees, investors, suppliers, etc.). The information security policy sets out general objectives and guidelines for improving and maintaining information security and describes information security risk management, the information security organisation and its general responsibilities, as well as information security training. The information security policy applies to the whole of the Componenta Group and to all employees. The information security policy is available electronically

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Notes to the consolidated financial statements

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to Componenta's employees and will be provided to other stakeholders if necessary. The information security policy is one of the aspects covered by the induction training for new employees.

Guidelines have been drawn up to supplement the information security policy in terms of the information security of personnel and relevant stakeholders (information security guidelines for users). The aim of the guidelines is to provide more detailed instructions than those presented in the information security policy and to determine practical procedures for Componenta's personnel. The guidelines cover the general responsibility of personnel, data security classifications and access rights, data processing and data security, the correct use of computers, the procedures to be followed at the end of employment, and emergencies and errors from a data security perspective. The information security guidelines for users apply to all companies belonging to the Componenta Group and to the entire Group personnel. The guidelines are available electronically to Componenta's personnel, and are included in the induction training for new employees. Componenta's Chief Financial Officer is responsible for information security matters at the Group level, and is responsible for the implementation of the information security policy and the information security guidelines for users. Persons specifically responsible for information security, such as information security managers, regularly monitor the implementation of the information security policy and the information security guidelines for

users, and the circumstances and practices related to information security and their development.

Componenta has drawn up a separate data protection policy to determine the practices, responsibilities and organisation of data protection within the Group. The data protection policy also serves as a basis for more detailed instructions and operating principles related to data protection matters. The data protection policy describes the data protection principles and the management of personal data at Componenta, how data protection is ensured in the processing of personal data, the requirements for conducting a data protection impact assessment, the procedure in the event of data protection being compromised, and the data protection responsibilities and data protection organisation. The data protection policy applies to all companies belonging to the Componenta Group and all its employees, and to all personal data processed by the Componenta Group. The policy is available electronically to all Componenta

personnel and is provided to other stakeholders as necessary. The Director responsible for legal affairs and sustainability matters at Componenta is responsible for the implementation of the data protection principles and data protection policy at the Group level and monitors compliance with data protection legislation.

Actions

Componenta's information security management model is based, where applicable, on the NIST CSF framework, which consists of five mutually supportive phases. As part of the implementation of the framework, Componenta identifies and implements measures to improve the Group's cybersecurity. The following table shows the most relevant measures for the development of cybersecurity at Componenta during the reporting period and in the coming years. The continuous development of cybersecurity also includes regular training of personnel.

Action	Expected outcomes	Scope of application	Time horizon
Systematic operational network security development and testing, including a personnel-wide phishing simulation (implemented in 2024)	Achieving more robust protection against external security threats	Own operations throughout the Group	2024–2029
Developing information security risk management to meet the requirements of the NIS2 directive	The development of information security risk management ensures not only risk management in accordance with legislation, but also a higher level of risk management	Own operations throughout the Group, value chain	2024–2025

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Notes to the consolidated financial statements

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Targets and metrics

At the end of 2024, Componenta did not have long-term targets related to cybersecurity. The monitoring of the effectiveness of measures and policies to manage cybersecurity risks takes place through, for example, the analysis of potential security incidents (qualitative indicator), the monitoring of the proportion of MFA users (quantitative indicator), the monitoring of the results of the continuous phishing simulation (quantitative and qualitative indicator), and the monitoring of the number of participants in personnel information security training (quantitative indicator). Information security matters are also regularly discussed by Componenta's Corporate Executive Team and Board of Directors. No permanent target levels have been determined for the indicators, but the aim is to achieve a sufficient level, which is determined by the current situation in the operating environment.

Increasing environmental legislation

Increasingly stringent EU and national environmental legislation imposes new and stricter requirements on Componenta, especially for foundry operations. Failure to comply may result in sanctions against Componenta, other financial losses and/or reputational damage. For example, any strict limit values for emissions into the air arising from legislation and the major investments in process equipment required to meet them can lead to increased costs and potentially reduced profitability. The impact of

declined profitability of the foundry business could be significant for Componenta's business and foundry personnel, customers, and for the foundry operations of Finland as a whole. In its strategy work, Componenta has identified the increase in sustainability requirements as one of the drivers of change affecting its operations. Consequently, sustainability, including increasing environmental legislation, has been chosen as one of the focus areas for the 2024–2026 strategy period. Componenta has acquired expert resources in order to be able to react to the new legislation at an earlier stage than before, and is proactively involved in the development of legislation and application guidelines with sectoral organisations and authorities as part of the implementation of its strategy. The increasing environmental legislation has no direct impact on Componenta's business model or value chain. During the reporting period, there were no individual or specific material events related to increasing environmental legislation that had a material impact on Componenta's financial position, financial performance or cash flows. Furthermore, no significant risk was identified that a material adjustment would be made to the carrying amounts of assets and liabilities reported in the related financial statements during the next financial year.

Policies

At the Group level, Componenta has determined responsibilities for monitoring legislation in relation to its own operations. The Group's environmental and sustainability experts and the Director responsible for legal affairs and sustainability matters are responsible for monitoring new and developing environmental legislation. The Director responsible for legal affairs and sustainability matters is responsible for ensuring that the monitoring of legislative changes is organised to the appropriate extent at the Componenta Group. The objective of monitoring legislation is to ensure a timely and proportionate response to legislative changes and new legislation. No specific process has been determined for monitoring the implementation of the related policy.

Actions

Componenta's normal operations include monitoring environmental legislation to ensure timely and proportionate responses to legislative changes. In addition, Componenta participated in the development of the new BREF document for foundries and forges during the reporting period. Through the participation of representatives of the foundry industry in the development of the BAT conclusions, realistic legislation that minimises the environmental impacts can be achieved, and its requirements can be met. In addition, expected changes to, for example, the limit values for emissions into the air will be made known to Componenta at an early stage, so the changes can be taken into account in business planning in the long term.

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Targets and metrics

Componenta has not set targets or established metrics for the risk related to increasing environmental legislation, as Componenta has not yet identified metrics that would be suitable for monitoring the risk and useful for the operations. At the executive level, the state of changing environmental legislation and Componenta's readiness to respond to new and expected legal requirements are regularly monitored. As a rule, the Director responsible for legal affairs and sustainability matters or the COO presents matters related to changing environmental legislation to the Corporate Executive Team. No target level or quantitative or qualitative indicators have been determined for monitoring the effectiveness of policies and actions related to the increasing environmental legislation.

Notes to the consolidated financial statements

Key figures

Alternative key financial ratios used for financial reporting

Componenta publishes certain commonly used key financial ratios that can be derived from the IFRS financial statements. Componenta has published adjusted EBITDA as a new alternative key financial ratio in 2024. Adjusted EBITDA reflects true operational and non-recurring profitability as a basis for performance management and improves comparability between reporting periods. Adjusted EBITDA does not include income or expenses arising from corporate or structural arrangements. A reconciliation of adjusted EBITDA is presented below.

EUR Thousand	Jan 1–Dec 31,2024	Jan 1–Dec 31,2023
EBITDA	7,854	5,278
Income and expenses related to corporate and
structural arrangements	-2,924	0
Adjusted EBITDA	4,930	5,278

Dec 31	2024	2023	2022	2021	2020
Total statement of financial position, EUR thousand	63,412	57,290	58,848	55,479	64,005
Net interest bearing debt, EUR thousand	5,472	9,097	4,818	6,714	-2,584
Invested capital, EUR thousand	40,006	39,924	37,544	35,402	38,038
Return on investment, %	6.6	9.8	4.3	3.2	0.7
Return on equity, %	0.8	6.2	0.2	-1.7	-5.8
Equity ratio, %	41.3	45.0	41.1	42.3	37.34
Net gearing, %	21.2	35.6	20.0	28.6	-10.83
Investments in non-current assets, EUR thousand	6,732	4,066	3,617	1,183	3,415
Number of personnel at period end	681	584	592	570	564
Average number of personnel	614	589	588	562	580

Per share data	2024	2023
Basic earnings per share (EPS), EUR	0.02	0.16
Diluted earnings per share (EPS), EUR	0.02	0.16
Cash flow per share (EPS), EUR	0.85	0.12
Equity per share (EPS), EUR	2.66	2.63
P/E ratio	131.40	14.75
Share price at year end, EUR	2.76	2.35
Average trading price, EUR	2.75	2.67
Lowest trading price, EUR	2.12	2.20
Highest trading price, EUR	3.55	3.25
Market capitalization at year-end, EUR thousand	26,807	22,825
Trading volume, 1,000 shares	2,123	1,973
Trading volume, %	21.9	20.3
Weighted average of number of shares, 1,000 shares	9,713	9,713
Number of shares at year-end, 1,000 shares	9,713	9,713

report

Consolidated financial statements

Calculation of key financial ratios

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

Notes to the consolidated financial statements

Parent company financial statements

Consolidated financial statements

Consolidated income statement

EUR thousand	Note	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Net sales	1	97,145	101,809
Other operating income	2	3,486*	751
Operating expenses	3,4,5	-92,777	-97,283
Depreciation, amortization and write-downs	6	-5,292	-1,516**
Operating result		2,562*	3,762**
Financial income	7	84	43
Financial expense	7	-2,442	-2,237
Total financial income and expenses		-2,358	-2,193
RESULT AFTER FINANCIAL ITEMS		204	1,568
Income taxes	8	0	-21
RESULT FOR THE FINANCIAL PERIOD		204	1,547
Allocation of result for the period:
To equity holders of the parent		204	1,547
Earnings per share calculated on result attributable to the shareholders of the parent company
Basic earnings per share, EUR	9	0.02	0.16
Diluted earnings per share, EUR	9	0.02	0.16

* The operating result for 2024 includes a non-recurring non-operational income of EUR 2.9 million from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

** The operating result for 2023 includes a non-recurring gain of EUR 4.2 million arising from the reversal of an impairment loss related to production machinery and equipment in the foundry business.

Notes to the consolidated financial statements

Parent company financial statements

Consolidated statement of comprehensive income

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Net result	204	1,547
Comprehensive income total	204	1,547
Allocation of the comprehensive income
To equity holders of the parent	204	1,547

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Consolidated statement of financial position

EUR thousand	Note	Dec 31, 2024	Dec 31, 2023
ASSETS
NON-CURRENT ASSETS
Intangible assets	10	1,574	1,995
Goodwill	11	3,225	3,225
Tangible assets	12	32,973	30,974
Receivables	23	360	413
Total non-current assets		38,132	36,607
CURRENT ASSETS
Inventories	13	13,994	12,628
Trade and other receivables	14,15	2,584	2,778
Cash and cash equivalents	23	8,703	5,277
Total non-current assets		25,281	20,683
TOTAL ASSETS		63,412	57,290

EUR thousand	Note	Dec 31, 2024	Dec 31, 2023
SHAREHOLDERS' EQUITY AND LIABILITIES

SHAREHOLDERS' EQUITY
Share capital		1,000	1,000
Unrestricted equity reserve		17,010	17,010
Other reserves		2,507	2,507
Retained earnings		5,110	3,485
Result for the period		204	1,547
Equity attributable to equity holders
of the parent company	18	25,831	25,550
Shareholders' equity		25,831	25,550
LIABILITIES
Non-current liabilities
Interest-bearing liabilities	23	10,697	11,294
Interest free liabilities and capital loans	24, 25	946	625
Provisions	22	14	14
Total non-current liabilities		11,657	11,933
Current liabilities
Interest-bearing liabilities	23	3,478	3,080
Interest free liabilities and capital loans	24, 25	22,088	16,392
Provisions	22	358	334
Total curent liabilities		25,924	19,806
Total liabilities		37,581	31,740
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		63,412	57,290

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financial statements

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Condensed consolidated cash flow statement

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023

Cash flow from operating activities
Result after financial items	204	1,568
Depreciation, amortization and write-downs*	5,292	1,516
Net financial income and expenses	2,358	2,193
Other income and expenses, adjustments to cash flow**	-2,573	-791
Change in net working capital
Inventories	894	631
Current non-interest bearing receivables	292	1,167
Current non-interest bearing liabilities	4,007	-3,086
Interest paid and other financial expenses	-2,242	-2,072
Net cash flow from operating activities	8,232	1,126
Cash flow from investing activities
Capital expenditure in tangible and intangible assets	-3,187	-2,794
Sale of tangible and intangible assets	18	45
Net cash flow from investing activities	-3,168	-2,749

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Cash flow from financing activities
Issuance of convertible bond	-97	0
Repayment of lease liabilities	-2,090	-1,748
Repayment of current loans	-1,450	-1,952
Draw-down of non-current loans	2,000	2,000
Net cash flow from financing activities	-1,637	-1,700
Change in liquid assets	3,426	-3,323
Cash and cash equivalents in the beginning of the period	5,277	8,600
Cash and cash equivalents at the period end	8,703	5,277

* The depreciation, amortization and write-downs for 2023 includes a non-recurring gain of EUR 4.2 million arising from the reversal of an impairment loss related to production machinery and equipment in the foundry business.

** Other income and expenses, adjustments to cash flow mainly include a non-recurring income of EUR 2.9 million from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

Notes to the consolidated financial statements

Parent company financial statements

Statement of changes in consolidated shareholders' equity

EUR thousand	Share capital	Unrestricted equity reserve	Other reserves	Retained earnings	Shareholders' equity total
Shareholders' equity Jan 1, 2024	1,000	17,010	2,507	5,033	25,550
Net result				204	204
Total comprehensive income	0	0	0	204	204
Transaction with owners:
Option and share-based compensation				77	77
Transactions with owners, total	0	0	0	77	77
Shareholders' equity Dec 31, 2024	1,000	17,010	2,507	5,314	25,831

Shareholders' equity Dec 31, 2023	1,000	17,010	2,507	5,033	25,550

Transactions with owners, total	0	0	0	103	103
Option and share-based compensation				103	103
Transaction with owners:
Total comprehensive income	0	0	0	1,547	1,547

Net result				1,547	1,547
Shareholders' equity Jan 1, 2023	1,000	17,010	2,507	3,383	23,900
EUR thousand	capital	equity reserve	reserves	earnings	equity total
	Share	Unrestricted	Other	Retained	Share holders'

statement Contents President and CEO's Board of Directors'

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Consolidated financial

Notes to the consolidated financial statements

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Notes to the consolidated financial statements

report

Accounting principles for the consolidated financial statements

Basic information about the Group

The Group's parent company is Componenta Corporation (business ID 1635451-6), whose shares are quoted on the NASDAQ Helsinki stock exchange (Nasdaq Helsinki Ltd). The parent company is domiciled in Helsinki. The registered street address is Teknobulevardi 3-5, FI-01530 Vantaa, Finland.

A copy of the consolidated financial statements can be obtained on the internet at www.componenta. com or from the head office of the Group's parent company at Teknobulevardi 3-5, 01530 Vantaa, Finland.

Sustainability

The financial year for all Group companies is the calendar year and it ends on 31 December.

The Board of Directors of Componenta Corporation has approved, at its meeting on March 27, 2025, the submission of these financial statements to the Annual General Meeting for approval.

Basis of preparation of the consolidated financial statements

Componenta Corporation is a Finnish public limited company domiciled in Helsinki. Componenta Group ("Componenta" or "the Group") is composed of Componenta Corporation and its subsidiaries. Componenta's consolidated financial statements have been prepared in accordance with IFRS Accounting Standards, applying the IAS and IFRS standards and SIC and IFRIC interpretations in force on 31 December 2023. IFRS standards refers to standards and interpretations as adopted by the EU in accordance with the procedure established in EU regulation (EC) 1606/2002 as required by the Finnish Accounting Act and related provisions. The notes to the consolidated financial statements also conform to Finnish accounting and corporate legislation.

Subsidiaries acquired by Componenta are included in the consolidated financial statements from the moment that the Group gains control and divested subsidiaries up to the time the control ends. Intra-group shareholdings have been eliminated using the acquisition method. The acquisition consideration, including deferred and contingent consideration, as well as the identifiable assets acquired and liabilities assumed, is measured at the acquisition date fair values. The acquisitionrelated costs are accounted as expenses for the period in which they are incurred. All intra-group transactions, receivables, liabilities and unrealized profits, as well as the distribution of profits within the Group have been eliminated in the consolidated financial statements.

Business acquisitions and divestments

On 22 July 2024, Componenta announced that it had signed an agreement on the acquisition of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre, including their inventories, fixed assets and real estate, from Fortaco Group for around EUR 2.8 million. The net sales of the acquired business operations were around EUR 9.6 million in 2023. The transaction was completed on 1 October 2024. The business operations became part of Componenta on the closing date of the transaction after control of the business operations was transferred to Componenta. At the time of acquisition, the fair value of the identifiable net assets transferred in the transaction has been approximately EUR 5.3 million. The acquisition cost of the transaction has been approximately EUR 2.4 million and it has consisted of cash consideration from purchased businesses less holiday pay and seniority allowance debt transferred in the transaction. The fair value of the transferred net assets has exceeded the acquisition cost by approximately EUR 2.9 million. Negative goodwill arising from a transaction in accordance with the IFRS 3 standards is recognised as income, which is why Componenta recognised a one-time positive return in its income statement as other operating income. Componenta Manufacturing Oy will buy the properties used by the Kalajoki and Sepänkylä businesses from Fortaco Oy within one year, by 1 October 2025. Until then, Componenta is paying rent to Fortaco for the properties in Kalajoki and Sepänkylä. The paid rent will be deducted from

the purchase price of the real estate (EUR 1 million). Componenta is financing the transactions with its internal financing and the financing limits at its disposal.

Componenta had no acquisitions in 2023. Componenta had no divestments in 2024 and 2023.

Segment information

Componenta provides its customers with services throughout the supply chain, including procedure design, casting, machining, metal sheet cutting, pipe products, forged blanks, surface treatments and logistics services, thus creating value-added

total solutions for customers. Componenta's main products for sale are cast and machined metal components, as well as forged blanks, pipe products and metal sheet cutting. The company's subcontracting network further expands its offering. Componenta's high-quality metal components are used in mechanical engineering, agricultural and forestry machinery and the energy industry. Componenta's customers are global machine and equipment manufacturers, with whom Componenta has long-term customer relationships. Sales revenue that is insignificant from the Group's perspective is received from the leasing of office space and industrial premises. The Chief Operating Decision Maker at Componenta

is its President and CEO. The Group's Corporate Executive Team and other management assist and support the President and CEO in its duties.

Componenta has identified several operating segments and analysed the financial characteristics, long-term sales margins and sales growth trends of the operating segments. The operating segments consist of two foundries, four machining units and four material service units owned by the Group. Based on the analysis, the above aspects are similar and consistent, as a result of which Componenta has only one reportable segment. Componenta's business operations are therefore presented as a single whole. When comparing the economic characteristics of its operating segments, the company has analysed the nature of products and services, the nature of production processes, the types and groups of customers for products and

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Notes to the consolidated financial statements

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services, distribution channels and the regulatory environment. Componenta also reports the distribution of its net sales between geographical areas and net sales from customers who account for more than 10% of the Group's net sales.

Accounting principles requiring the management's judgement

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

Componenta's financial statements for the financial year 2024 have been prepared based on the principle of going concern. When evaluating the going concern, Componenta has analyzed the liquidity risk and the adequacy of funding. When evaluating the adequacy of the financing, Componenta's management has taken into account, among other things, the points described in the next paragraph.

Componenta's sales volumes are at a reasonably good level despite the risks posed by the Russian war of aggression and increased geopolitical tensions. The temporarily weaker short-term order books have been addressed by means of timely and adequate adjustment measures. There have been

no disruptions or restrictions in the availability of electricity, and fluctuations in the price of electricity are transferred to customer prices based on indices in three months on average. At the end of the financial year, the Group's cash in hand and at bank totalled EUR 8.7 million (EUR 5.3 million). The Group's liquidity was at a good level. Componenta also had EUR 4.0 million in unused committed credit facilities at the end of the financial year. In April 2024, Componenta agreed on and drew down a new EUR 2.0 million working capital loan. In addition, Componenta had a convertible bond arrangement of up to USD 3 million agreed with MPL, a US investor, for 31 July 2025 to 31 December 2027. Componenta's net debt stood at EUR 5.5 million (EUR 9.1 million). It is the company's view that the Group also has access to debt financing from the market if necessary. The management has analysed the companies' cash flow forecasts for the next 12 months.

The management has also made other estimates and assumptions in determining the valuation of assets such as goodwill, tangible and intangible assets and inventories, valuation of assets and liabilities acquired in connection with business acquisitions, as well as the applicability of deferred tax assets, and contingent liabilities, for the financial statements. The management has also assessed the impact of inflation and market interest rate levels on the preparation of the financial statements and the valuation of the assets mentioned above. In addition, the management has assessed the value of accounts receivable. The management has assessed the situation in terms of both the company's own

industry and the overall economic situation. The assessment did not have a material impact on the credit loss provision in the financial statements. Componenta regularly updates its credit loss provision. Componenta continuously assesses the impacts of the Russian war of aggression and the increased geopolitical tensions on financial reporting. Componenta closely monitors market developments and its customers' situation and adjusts its operations accordingly. The management has assessed any indications of impairment of assets and reversals of impairment. These estimates and assumptions involve risks and uncertainty, and it is therefore possible that these forecasts will change when the circumstances change, which may affect the recoverable amount of assets. More information about annual impairment testing is provided in the notes to the 2024 financial statements.

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

Valuation of properties and land areas

Componenta applies the acquisition cost model permitted by IAS 16 for land, buildings and structures, where properties and land areas are

Board of Directors' report

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

recognised on the balance sheet at the original acquisition cost less depreciation and impairment according to plan. The revaluation model used in 2012–2023 was abandoned at the end of 2023 because the acquisition cost model is estimated to provide more reliable and relevant information about the impacts of transactions, other events or circumstances on the entity's financial position, financial performance and cash flows.

Impairment and reversal of impairments regarding fixed assets

According to the Group's accounting policies, the carrying amounts of tangible and intangible assets are re-examined for potential impairment whenever circumstances indicate a potential impairment. Componenta has tested the tangible and intangible assets for impairment by comparing the carrying amount of an asset and its recoverable amount. Measuring the recoverable amount of the tangible and intangible assets, the management is required to make estimates and assumptions about the tangible and intangible asset groups' future sales cash flows, production costs, discount rates and future capital expenditure required to maintain the assets in their current condition. These estimates and assumptions involve risks and uncertainty, and therefore it is possible that as conditions change, these forecasts change, which may affect the assets' recoverable amount.

At the end of each reporting period, Componenta assesses whether there is any indication that the impairment loss recorded for the asset - other than goodwill - in previous periods may no longer exist or that it may have decreased. If any indication exists, Componenta estimates the recoverable amount of that asset. When evaluating indications of a decrease in impairment losses, Componenta evaluates external and internal sources of information. If there has been a change in the estimates that have been used to determine the recoverable amount of the asset when recording the impairment loss, the reversal of the impairment loss is recorded with effect on profit. However, the increased book value due to the reversal of the impairment loss will never exceed the book value that the asset would have had without the impairment loss entry made at the time. Possible impairment losses on goodwill are never reversed.

Inventory measurement

The net realizable value of inventory is assessed on each reporting date. Net realizable value refers to the estimated selling price in the ordinary course of business less variable selling expenses. Determination of the net realizable value includes the management's estimates on the selling price of inventories.

Recoverable amount of goodwill

The recoverable amounts of goodwill are measured with value-in-use calculations for all cash flow generating units annually or more often, if there are indications of impairment. The used value-inuse calculation are based on assumptions made by management regarding market development, that is growth and profitability, and other material factors. The most significant affecting factors, which are the basis of the assumptions, are sales growth, operating result, economic life of assets, future investments and discount rate. Changes in these assumptions can significantly affect the cash flows generated in the future.

Ability to utilize deferred tax assets

Discretion is required when evaluating the recognition of deferred tax assets and certain deferred tax liabilities on the balance sheet. Deferred tax assets are recognized only if it is considered likely that they are recoverable, which will depend on the existence of sufficient future taxable income. Assumptions of future taxable income are based on the management's estimates of future cash flows. These estimates of future cash flows are, in turn, dependent on the management's estimates, inter alia, of the future volume of sales, operating expenses and financing costs. The company's ability to accumulate taxable income also depends on general economic, financial,

Board of Directors' report

Consolidated financial statements

Parent company financial statements

competitive and regulatory factors that are not under its own control. Estimates and assumptions involve risks and uncertainties, and thus it is possible that expectations change as circumstances change. This may affect the amount of deferred tax assets and liabilities on the balance sheet and the amount of temporary differences.

Foreign currency -denominated items

The result and financial position of the Group's units are measured in currencies that are the main currencies of their respective operating environments. The consolidated financial statements are presented in euro, which is the operating and reporting currency of Componenta Corporation.

Foreign currency -denominated transactions are recorded in the operating currency using the exchange rate of the transaction date. Receivables and liabilities were converted into euros at the exchange rate of the balance sheet date.

The translation differences created by businessrelated receivables and debts and their associated hedging items are included in the operating result. The translation differences of financial assets and liabilities and the result of their associated hedging instruments are presented under financial items in the income statement.

The applied new standards

Componenta has applied standard changes and interpretations relevant to Componenta that came into force during the financial period. The IFRS accounting standards that entered into force in 2024 and their changes did not have a significant impact on the consolidated financial statements.

Upcoming new and amended standards and interpretations not yet effective in 2024

Notes to the consolidated financial statements

IASB (International Accounting Standards Board) publishes annually new standards, amendments, interpretations and improvements to standards already published. The significance of these publications on Componenta's business and finance is assessed. IFRS 18 Presentation and Disclosure in Financial Statements will replace the standard IAS 1 Presentation of Financial Statements for reporting periods beginning on and after January 1, 2027. The standard will have an impact on the presentation of primary financial statements and the accompanying notes of Componenta's consolidated financial statements.

Board of Directors'

report

Sustainability statement Contents President and CEO's

Notes to the consolidated income statement +NOTES TO THE CONSOLIDATED INCOME STATEMENTS

Consolidated financial statements

Notes to the consolidated financial statements

Notes to the consolidated income statement

Figures are in thousands of euros unless otherwise stated.

1. Net sales

Componenta Corporation is an international technology group and Finland's leading contract manufacturer in the engineering industry. Componenta and its predecessors have more than 200 years of experience in metal processing, method design, product development co-operation and various manufacturing methods, as well as their development. The Group's operational functions are located in Finland. Componenta's technology portfolio is extensive. The Group manufactures both cast and machined metal components as well as forgings, pipe products and plate sections. Componenta's business model is built on long-term customer relationships. The Group's customers are global machine and equipment manufacturers. Componenta's production is focused on serving the customer flexibly, especially in short and medium-sized production series. The wide range of production units covers sizes ranging from hundreds of grams to thousands of kilograms, volumes available from pieces to tens of thousands of series, and many different material options.

Group's net sales by market area

	Jan 1–Dec 31,	Jan 1–Dec 31,
EUR thousand	2024	2023
Finland	81,090	82,813
Sweden	10,517	11,286
Germany	1,496	2,374
Other European countries	3,649	5,010
Other countries	417	312
Internal items/eliminations	-24	13
Total	97,145	101,809

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

Group's net sales by business area

%	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Machine building	39	45
Agricultural machinery	20	30
Forestry machinery	15	4
Energy industry	14	9
Defence equipment industry	7	7
Other industries	5	5
Total	100	100

Group's net sales by customer

Componenta has two significant customers whose share of the net sales is over 10%. The customers' share of the Group's net sales is 19.8% (29.1%) and 14.4%.

Sustainability statement Contents President and CEO's

Consolidated financial statements

Accounting principles

Revenue recognition

The Group's revenue flows relate to sales of products and services. The main selling products are non-machined, machined and painted iron cast components. Additionally the company produces machining services for its clients own products. Sales revenue that is insignificant from the Group's perspective is received from the leasing of office space and industrial premises.

Revenue from sold products and services to customers is recognised at the time of transfer, that is when control has been transferred to the customer. Control is transferred to the customer when the goods have been delivered to the location of the customer's choosing in accordance with the terms of delivery and when the service has been performed. After the transfer of control, the customer may decide the use of the goods and receive a material part of the existing use of the goods. In practice, the customers use Componenta's products to produce their own products, adding value to their own products. Part of the revenue from machining services is recognized over time and the degree of fulfillment is based on the proportion of actual and estimated total costs. Componenta recognizes rental income on a straight-line basis monthly by transferring the leased premises to customers.

Sales revenue is only entered according to the agreed amount, or transaction price, taking into account potential discounts. The customers will agree to the transaction prices based on offers and changes in indexes by paying the invoices delivered. The company utilizes the practical expedient when the difference between transfer and payment of products

and services is less than one year. In pracise this means that the transaction price is not adjusted for the effects of a significant financing component. The Group does not have any long-term contracts in which the period of time from the moment the company hands over the promised goods to the customer to when the customer pays for the goods is longer than one year. As a result, no material transaction price changes occur in the Group for performance obligations. The Group companies offer compensation for faulty products within normal warranty periods, by replacing faulty products with new ones. The claim reservation recorded by Componenta from the previously mentioned is based on historical and customer-specific reports.

Componenta net sales include revenue from contracts with customers net of indirect tax. Componenta recognizes revenue when it has fulfilled its performance obligation by handing over the agreed goods to the customers or by completing the services. Componenta satisfies the performance obligation at a point in time or over time. All performance obligations for the accounting period and the comparison period were fulfilled at a point in time.

The majority of Componenta's customers are major, financially stable, global companies. The amount of expected credit losses from these customers is low. The credit loss allocation is based on historical and customer-specific reports.

Parent company financial statements

2 Other operating income

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Rental income	342	347
Profit from sale of non-current assets	18	44
Other income*	3,125	361
Total	3,486	751

* Other income includes a non-recurring non-operating income of EUR 2.9 million recorded for 2024 from the purchase of the businesses regarding Kalajoki factory and Sepänkylä machining and service center.

Accounting principles

Revenues that are not part of actual net sales are recognized under other income from operations.

3 Operating expenses

Jan 1–Dec 31,	Jan 1–Dec 31, 2023
-497	-994
50	260
-36,751	-40,306
-6,740	-7,485
-31,494	-31,189
-334	-339
-3,926	-3,726
-4,443	-4,826
-34	-42
-2,207	-2,077
-2,118	-2,643
-316	-218
-3,967	-3,700
-92,777	-97,283
-184	-195
-10	-30
-194	-225
	2024

* PricewaterhouseCoopers Oy has provided non-audit services to the entities of Componenta Group in total of EUR 10.0 thousand (EUR 29.9 thousand) during the financial year 2024.

Parent company financial statements

4 Personnel expenses

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Personnel expenses
Salaries and fees	-25,765	-25,599
Pension costs	-4,543	-4,083
Other personnel costs	-1,186	-1,507
	-31,494	-31,189

Average number of personnel, excluding leased personnel

	Jan 1–Dec 31,	Jan 1–Dec 31,
EUR thousand	2024	2023
Group total	614	589

Number of personnel, excluding leased personnel at the end of the period

	Jan 1–Dec 31,	Jan 1–Dec 31,
EUR thousand	2024	2023
Group total	681	584

Personnel expenses include costs related to share-based payment EUR -0.1 (-0.1) million.

5 Research and development costs

EUR thousand	2024	2023
The following amounts have been recognized in the income
statement under research and development costs	–	–

There were no research and development costs in 2024 and 2023 due to the fact that Componenta practises contract manufacturing.

Accounting principles

Research costs are recognised in the income statement as an expense. Expenditure on development activities relating to new products is capitalised and recognised as an expense under depreciation over their useful economic lives. The planned depreciation period for these costs is 5 years. In other respects, the Group's minor research and development costs are recorded as expenses as incurred.

6 Depreciation, amortization and write-downs

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Depreciation and amortization
Intangible assets
Computer software	-356	-300
Other capitalized expenditure	-150	-288
	-506	-587
Tangible assets
Buildings and structures	-1,995	-1,911
Machinery and equipment*	-2,785	-3,247
Other tangible assets	-6	-6
	-4,786	-5,164

Revaluations of tangible assets**	0	4,235
Total depreciation, amortization and revaluations	-5,292	-1,516

* The units-of-production depreciation method is used for production machinery and equipment. Group's planned depreciation based on normal utilized capacity for production machinery and equipment was EUR -2.2 million (EUR -2.4 million) and capacity utilization correction was EUR -0.6 million (EUR -0.6 million).

** On September 30, 2023, a reversal of the impairment loss according to the IAS 36 standard has been made for the foundry business production machinery and equipment in the amount of EUR 4,235 thousand. The reversal of the impairment loss has been based on an assessment of long-term future income expectations based on external and internal information sources. More information on impairments of fixed assets and reversal of impairments can be found in the accounting principles for the consolidated financial statements.

Accounting principles

Planned depreciation, except for production machinery and equipment, is calculated on a straight-line basis on the original acquisition cost, based on the estimated useful economic life. On 1 January 2009, the Group started to use the units-of-production depreciation method for production machinery and equipment, in which the amount of depreciation is based on the actual output of production machinery and equipment. The units-of-production method gives a more precise picture of the actual economic wear on production machinery and equipment than the straightline method, especially when capacity utilisation rates change quickly. Estimated useful economic lives by asset group are as follows:

intangible rights	3–10 years
other intangible assets	3–20 years
buildings and constructions	25– 40 years
computing equipment and capitalised development costs	3–5 years
other machinery and equipment	5–25 years
other tangible assets	3–10 years.

7 Financial income and expenses

	Jan 1–Dec 31,	Jan 1–Dec 31,
EUR thousand	2024	2023
Other interest income	26	14
Other financial income	58	29
Effective interest expenses for financial liabilities recognized
at amortized cost	-494	-385
Interest expense from lease liabilities	-531	-519
Other charges on financial liabilities valued at amortized cost	-177	-217
Interest expenses and commissions for sold trade receivables	-1,240	-1,116
Financial income and expenses, total	-2,358	-2,193

8 Income taxes

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Income taxes
Change in deferred taxes (see note 16)	0	-21
Income taxes, total	0	-21

Income tax reconciliation between tax expense of continued operations computed at statutory rates in Finland of 20.0 % and income tax expense provided on earnings

EUR thousand	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
Profit before tax	204	1 568
Income tax using Finnish tax rate	-41	-314
Tax exempt income	87	859
Non-deductible expenses	-319	-238
Tax losses from which no deferred tax assets have been recorded	-14	-287
Other	288	-41
Taxes total	0	-21

Accounting principles

Consolidated direct taxes include direct taxes based on the taxable profit of Group companies, calculated according to tax legislation in each company's domicile. Deferred tax liabilities are recognised on the balance sheet in full and deferred tax assets to the extent that it is probable that future taxable profit will be available against which the asset can be utilised. Deferred tax liabilities and assets are calculated from all the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, using the tax rate in force on the balance sheet date. Future changes in tax rates are taken into account when they have become, in practice, certain.

9 Earnings per share

	Jan 1–Dec 31,	Jan 1–Dec 31,
Group	2024	2023
Profit for the period attributable to the shareholders of the
parent company, 1,000 EUR	204	1,547
Weighted average number of outstanding shares during the
financial year, 1,000 shares	9,713	9,713
Basic earnings per share, EUR	0.02	0.16
Dilution effect of share options and share-based incentive plans, 1,000 shares	133	-
Weighted average number of outstanding shares during the
financial year, 1,000 shares	9,846	9,713
Diluted earnings per share, EUR	0.02	0.16

Accounting principles

Basic earnings per share is calculated by dividing the result for the period attributable to shareholders of the parent company by the weighted average number of outstanding shares during the financial year. Diluted earnings per share is calculated by adjusting the weighted average number of shares by the effect of potential diluting shares due to share options and share-based incentive plan in the Group.

Notes to the consolidated statement of financial position

Notes to the consolidated financial statements

10 Intangible assets

EUR thousand	2024	2023
Intangible rights
Acquisition cost at 1 Jan	1,859	1,859
Acquisition cost 31 Dec	1,859	1,859
Accumulated amortization at 1 Jan	-1,591	-1,591
Accumulated amortization at 31 Dec	-1,591	-1,591
Book value at 31 Dec	268	268
EUR thousand	2024	2023
Computer software
Acquisition cost at 1 Jan	5,909	5,755
Additions	16	123
Re-classifications	59	31
Acquisition cost at 31 Dec	5,984	5,909
Accumulated amortization at 1 Jan	-5,416	-5,265
Amortization during the period	-159	-151
Accumulated amortization at 31 Dec	-5,575	-5,416
Book value at 31 Dec	409	493
EUR thousand	2024	2023
Other capitalized expenditure
Acquisition cost at 1 Jan	13,913	13,475
Additions	1	120
Re-classifications	3	317
Acquisition cost at 31 Dec	13,916	13,913
Accumulated amortization at 1 Jan	-12,685	-12,249
Amortization during the period	-347	-436
Accumulated amortization at 31 Dec	-13,032	-12,685
Book value at 31 Dec	884	1,227

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Sustainability

Consolidated financial statements

2024	2023

6	0
52	6
-45	0
13	6
	6

	13

Total intangible assets 1,574 1,995

Capital expenditure on intangible asets during the financial period totalled EUR 0.1 million (EUR 0.2 million).

Accounting principles

For intangible assets that have a limited useful economic life, straight-line depreciation is entered as an expense in the income statement over their useful economic lives. The Group has no intangible assets that have an unlimited useful economic life.

11 Goodwill

EUR thousand	Dec 31, 2024	Dec 31, 2023
Acquisition cost on Jan 1	3,225	3,225
Book value on Dec 31	3,225	3,225

Allocation of goodwill

Goodwill is allocated on cash-generating units (CGU). For the impairment testing goodwill is allocated on those groups of cash-generating units, which are expected to gain from combined businesses, from which the goodwill has formed. Goodwill has been allocated on one cash-generating unit, which carry 100% of the whole goodwill.

Impairment testing

The significant assumptions used in Componenta's impairment testing are sales growth, operating result, capital expenditure and discount rate. The growth and profitability

assumptions are based on the increased net sales in the nearest years as well as on the control of coststructure. Management bases the increase of net sales in the nearest years on the strategy and budget, approved by the Board of Directors and external sources, i.e. upon agreed deals with existing clients. Cash flow estimates for five years are used in the calculations. After this the estimated cash flows are extrapolated by using a 0.0% growth rate.

The parametres for defining the discount rate, risk-free interest rate, risk factors (beta coefficient) and market risk premium, are based on information available in the financial market.

Based on the sensitivity analysis an increase of 3.0% in discount rate will cause the carrying amount of the CGU to exceed its recoverable amount.

The impairment testing was performed on 30 September 2024 using value in use (VIU) method.

Key assumptions

2024	5-year average	Terminal value
Used discount rate	11.0%	11.0%
Long-term growth forecast on net sales	-	0.0%
Operating result	7.5%	7.2%
Capital expenditure, EUR thousand	3,240	3,500
Sales growth assumption	10.0%	0.0%

2023	5-year average	Terminal value
Used discount rate	14.3%	14.3%
Long-term growth forecast on net sales	-	0.0%
Operating result	7.3%	8.2%
Capital expenditure, EUR thousand	2,620	3,500
Sales growth assumption	4.7%	0.0%

Parent company financial statements

The values assigned to each of the above key assumptions are determined as follows:

Approach used to determining values
Reflect specific risks relating to the relevant operated market.
This is the weighted average growth rate used to extrapolate cash flows beyond the budget period. Growth rate has been determined in accordance with the principle of prudence.
Based on past performance and management's expectations for the future, and on the coststructure in the group.
Based on the historical experience of management, and the planned maintenance expenditure. No incremental revenue or cost savings are assumed in the value-in-use model as a result of this expenditure.
Average annual growth rate over the five-year forecast period, which is based on current industry trends and discussions with clients as well as contracts. Long-term inflation forecasts are also included.

Accounting principles

Acquisitions are accounted for, by using the acquisition method. Goodwill represents the excess of acquisition cost over the fair values of identified acquired assets and liabilities of acquired companies at the acquisition date. Goodwill arises mainly in connection with acquisitions and it represents the value of acquired market share , business knowledge and the value of obtained synergies. Goodwill is not depreciated, but tested annually for impairment.

The book value of goodwill in the Group is assessed annually or more often if there are any indications of impairment. Goodwill is allocated on the cash generating unit (CGU), which is recognized in the Group. The recoverable amount of a CGU is determined by valuein-use calculations, where the cash flow based value-in-use is determined by calculating the estimated future cash flows discounted to their present value. The discount rate is the weighted average cost of capital (WACC). WACC reflects the market assessment of the time value of money and the risks specific in Componenta's business. Impairment loss of goodwill is recognized as an expense and is not subsequently reversed. Estimates used in the testing are based on assumptions made by management. These estimates and assumptions involve risks and uncertainties and, as a result, if circumstances change management's estimates and projections change, which may affect the recoverable amount of the assets.

12 Tangible assets

EUR thousand	2024	2023
Land and water areas
Acquisition cost at 1 Jan	805	805
Additions	434	-
Book value at 31 Dec	1,239	805
EUR thousand	2024	2023
Buildings and structures
Acquisition cost at 1 Jan	25,986	25,960
Additions	2,527	12
Disposals and re-classifications	56	14
Acquisition cost at 31 Dec	28,569	25,986
Accumulated depreciation at 1 Jan	-21,578	-21,146
Depreciation and write-downs during the period	-436	-432
Accumulated depreciation at 31 Dec.	-22,014	-21,578
Book value at 31 Dec	6,555	4,408
EUR thousand	2024	2023
Buildings and structures, leases
Acquisition cost at 1 Jan	15,035	13,346
Additions	59	202
Disposals and re-classifications	220	1,488
Acquisition cost at 31 Dec	15,315	15,035
Accumulated depreciation at 1 Jan	-7,132	-5,670
Depreciation during the period	-1,543	-1,462
Accumulated depreciation at 31 Dec	-8,675	-7,132
Book value at 31 Dec	6,639	7,904

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Sustainability statement Contents President and CEO's

Consolidated financial statements

Parent company financial statements

EUR thousand	2024	2023
Machinery and equipment
Acquisition cost at 1 Jan	90,384	88,432
Additions	1,207	812
Disposals and re-classifications	620	1,140
Acquisition cost at 31 Dec	92,211	90,384
Accumulated depreciation at 1 Jan	-75,766	-77,352
Depreciation and write-downs during the period*	-1,983	1,585
Accumulated depreciation at 31 Dec	-77,749	-75,766
Book value at 31 Dec	14,462	14,618
EUR thousand	2024	2023
Machinery and equipment, leases
Acquisition cost at 1 Jan	8,528	7,473
Additions	1,106	1,070
Disposals and re-classifications	1	-15
Acquisition cost at 31 Dec	9,635	8,528
Accumulated depreciation at 1 Jan	-6,368	-5,664
Depreciation during the period	-679	-704
Accumulated depreciation at 31 Dec	-7,047	-6,368
Book value at 31 Dec	2,588	2,160
EUR thousand	2024	2023
Other tangible assets
Acquisition cost at 1 Jan	587	569
Additions	7	17
Disposals and re-classifications	-21	-
Acquisition cost at 31 Dec	573	587
Accumulated depreciation at 1 Jan	-96	-90
Depreciation during the period	-6	-6
Accumulated depreciation at 31 Dec	-102	-96

Book value at 31 Dec 471 490

EUR thousand	2024	2023
Advance payments and fixed assets under construction
Acquisition cost at 1 Jan	590	331
Additions	1,324	1,703
Disposals and re-classifications	-895	-1,444
Book value at 31 Dec	1,019	590

TOTAL TANGIBLE ASSETS	32,973	30,974

* On September 30, 2023, a reversal of the impairment loss according to the IAS 36 standard has been made for the foundry business production machinery and equipment in the amount of EUR 4,235 thousand. The reversal of the impairment loss has been based on an assessment of long-term future income expectations based on external and internal information sources.

Re-classifications within machinery and equipment includes a net effect of EUR -345 thousand (EUR -408 thousand) regarding a financing arrangement of a particular machine of Componenta Manufacturing Oy. In addition the net effect is included in long-term liabilities EUR -345 thousand (EUR -408 thousand). The acquisition cost of the machine has been adjusted by the discounted effect regarding the payments of the loan. Interest used is 6,3% and loan term is 11 years.

Capital expenditure of tangible assets during the financial period totaled EUR 6.7 (3.8) million. Investments for the financial period include the businesses acquired in Kalajoki and Sepänkylä during the financial period.

Advance payments and fixed assets under construction for the financial year include one significant environmentally related investment. The investment is scheduled to be completed in 2025 and will have a reducing effect on particulate emissions at a production facility.

Changes in right-of-use assets

EUR thousand	2024	2023
Carrying amount, Jan 1	10,063	9,484
Additions	1,165	1,272
Disposals and re-classifications	221	1,473
Depreciation	-2,222	-2,166
Carrying amount, Dec 31	9,228	10,063

Componenta's most material right-of-use assets capitalized consist of production machinery, production and office premises. Some of these leases contain renewal and extension options that are considered in the lease term if it is reasonably certain to exercise the option. The leases for production and office premises are mainly leases valid until further notice. The Group has estimated that its leases valid until further notice will run for an average duration of 7 years. The estimate is based on previous experience on the duration of similar leases and on the Group strategy.

Sustainability statement Contents President and CEO's

Consolidated financial statements

Parent company financial statements

Group as lessor

The Group has leased out a few business facilities to a third parties, which annual revenue is immaterial from the Group's point of view. The Group treats these leases as operational leases. The gains and risks that are essentially associated with the leased facilities do not grant the lessees.

Lease receivables scheduled for leases

EUR thousand	Dec 31, 2024	Dec 31, 2023
Not later than one year	335	307
Later than one year but not later than five years	1,340	1,223
Total	1,675	1,530

Accounting principles

Property, plant and equipment is recorded on the balance sheet at original acquisition cost less planned depreciation and write-downs. The acquisition cost includes all costs directly incurred by the purchase of the asset. The received tangible assets from a new acquired company are recognised at fair value.

In 2023, Componenta has switched to using the acquisition cost model permitted by the IAS 16 standard for land, buildings and structures, where properties and land are recorded in the balance sheet at the initial acquisition cost, less depreciation and depreciation according to the plan. The previously used revaluation model has been abandoned at the end of the financial year, because the acquisition cost model is estimated to provide more reliable and relevant information about the effects of transactions, other events or circumstances on the entity's financial position, financial result and cash flows. The revaluation model has been in use at Componenta since December 31, 2012, and according to the accounting principle, land areas, buildings and structures have been recorded at fair values, which were based on assessments made by independent valuers and from which, in the case of buildings, depreciation after revaluation was deducted. In 2012, according to the company's strategy, real estate was developed as a separate business, which is why the revaluation model was a more suitable accounting principle. However, the company has since given up owning real estate as a business area and has sold a large part of the real estate it owns. In practice, the company only owns production plants that are in its own use. Therefore, switching to the acquisition cost model is a more conventional way of valuing fixed assets on the balance sheet in a group engaged in industrial manufacturing activities. In December 2023, an external independent assessment of the properties owned by the company was also carried out, according to which the recoverable amounts of the properties exceed the accounting values and there are no write-down needs at the time of closing the accounts. The change in the accounting principle has been made retroactively in accordance with IAS 8 and has had an impact on the opening balance sheet and the result of the comparison period. Componenta does not prepare a third balance sheet in accordance with IAS 1, because the change in the accounting principle has an immaterial effect on the information contained in the balance sheet.

Maintenance and repair costs are usually recognised in the income statement as an expense as incurred. Major refurbishment costs are capitalised and depreciated over their estimated useful life if these costs are likely to increase the future economic benefits embodied in the specific asset to which they relate. Spare parts for production machinery, stand-by equipment and servicing equipment are presented as tangible assets when they comply with the definition of property, plant and equipment. Otherwise these assets are classified as inventory. As a rule, the depreciation period after installation is 3 years.

Planned depreciation, except for production machinery and equipment, is calculated on a straight-line basis on the original acquisition cost, based on the estimated useful economic life. The Group uses the units-of-production depreciation method for production machinery and equipment, in which the amount of depreciation is based on the actual output of production machinery and equipment. The units-of-production method gives a more precise picture of the actual economic wear on production machinery and equipment than the straightline method, especially when capacity utilisation rates change quickly. Estimated useful economic lives by asset group are as follows:

buildings and constructions	25–40 years
computing equipment	3–5 years
other machinery and equipment	5–25 years
other tangible assets	3–10 years.

Impairment of assets and reversal of impairments

The carrying amounts of the Group's assets are reviewed on each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recognised for the amount by which the balance sheet value of the asset exceeds the recoverable amount for the asset. The recoverable amount of an asset is the greater of its net selling price and value in use. As a rule, value in use is based on the estimated discounted future net cash flows obtainable through the asset. The assets are tested for impairment either by using future cash flows or sales prices of the assets.

Also as part of the assessment of impacts regarding Russian war of aggression and the intensified geopolitical situation, management has assessed if there are any indications of impairment on the carrying amounts of Group's assets and estimated the recoverable amounts of these assets and assumed that there are no indications and that there is no need for impairment of the carrying amounts of Group's assets. These estimates and assumptions involve risks and uncertainty, and therefore it is possible that as conditions change, these forecasts will change, which may affect the assets recoverable amounts.

Consolidated financial statements

Parent company financial statements

is required to make estimates and assumptions about the tangible and intangible asset groups' future sales cash flows, production costs, discount rates and future capital expenditure required to maintain the assets in their current condition. These estimates and assumptions involve risks and uncertainty, and therefore it is possible that as conditions change, these forecasts change, which may affect the assets' recoverable amount.

Right-of-use assets

Componenta adopted the new IFRS 16 standard as of 1 January 2019. According to the new standard, an asset (right-of-use asset) and a financial liability regarding rental payments are recognized on the balance sheet (see note 23). At inception of a contract, Componenta assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract entitles the right to control the use of an identified asset for a period of time in exchange for consideration. The right-of-use assets of the lease agreement are capitalized on the commence date of the lease. The right-of-use assets are measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date. The right-of-use assets are subsequently depreciated using the straight line method from the commencement date, either according the end of the lease term or the end of the useful life of the right-of-use asset, based on which one is earlier. In addition, the right-of-use assets are adjusted for certain remeasurements of the lease liability. Right-of-use assets are tested for impairment in accordance with IAS 36.

Componenta has decided to utilize the practical expedient permitted by the standard and does not apply the standard on leases of low value assets, but instead recognizing the rents as an expense over the lease term. Leases of low value assets mainly include IT and office equipment. Additionally the Group recognizes leases that have a lease term of 12 months or less as leases of low value assets and apply a single discount rate to a portfolio of leases with reasonably similar characteristics.

13 Inventories

Dec 31, 2024	Dec 31, 2023
4,454	4,913
3,984	2,330
2,468	2,649
3,023	2,736
66	0
13,994	12,628

Other inventories include mainly patterns, fixtures, tools and spareparts.

Accounting principles

Inventories are stated at the lower of acquisition cost and net realisable value. The acquisition cost is based on the moving average price principle. The acquisition cost of manufactured products and work in progress includes the cost of raw materials, direct labour costs, other direct costs as well as a proportion of variable and fixed production overheads. Also, those spare-parts which are not recorded, by definition, under property, plant and equipment, are recorded under inventories. The management has made estimates and assumptions in determining the valuation of inventories.

Consolidated financial statements

Parent company financial statements

The net realisable value of inventory is assessed on each reporting date. Net realisable value refers to the estimated selling price in the ordinary course of business less variable selling expenses. Determination of the net realisable value includes the management's estimates on the selling price of inventories.

14 Accounts receivables

EUR thousand	Dec 31, 2024	Dec 31, 2023
Accounts receivables	1,707	1,847
Total	1,707	1,847

Changes in contract assets are specified in note 1.

Accounts receivables by currency

%	Dec 31, 2024	Dec 31, 2023
EUR	100	100
Total	100	100

Aging of accounts receivables

EUR thousand	Dec 31, 2024		Dec 31, 2023
	Accounts receivables	Loss allowance	Accounts receivables	Loss allowance
Not due	1,136		1,390
Overdue
less than 1 month	476		292
1–3 months	87		48
3–6 months	7		24
more than 6 months	130	130	160	67
Total	1,836	130	1,913	67

Credit risk

Componenta's credit risk is related to receivables that are trade receivables from delivered products. Group companies are primarily responsible for the risks related to customer receivables. The Group Treasury sets guidelines and monitors credit risk management and evaluates the creditworthiness and ability of customers to fulfill their payment obligations, and follows the changes in customers' credit information. The Group's credit risk position is reduced by the sale of customer receivables to a financing company without recourse right. Sold trade receivables at the end of the financial period was EUR 13.0 million (EUR 8.4 million). The increased amount of sold trade receivables is due to the increased share of the factored sales of the Group's current customers, as well as the increased sales volume following the aquisition of Fortaco Oy's Kalajoki business units in October 2024. The collection of customer receivables is carried out in accordance with the Group's debt collection policy. Componenta applies the expected credit loss model of the IFRS 9 standard when evaluating uncertain receivables. The credit loss provision for trade receivables is estimated on the basis of the quality and aging of the receivables by adjusting the customer receivables based on the customer's previous 12-month payment behaviour to the receivable open at the time of the financial statements. The effect of the IFRS 9 standard at Componenta is evident in the value adjustment of the estimated uncertain receivables formed by the application of the expected credit loss model.

Many customers are financially sound and solid companies, but in individual cases and with new unknown customers credit rating companies' reports on payment behaviour and solvency are used to support the credit decisions.

Credit losses and the provision for credit losses during the reporting period totalled EUR -0.1 million (EUR -0.1 million). Componenta Castings Oy booked credit losses of EUR 0.1 million (EUR 0.1 million) related to doubtful receivable over one year old which consist of old customer reclamations. The Group's credit loss risk was EUR 2.1 million (EUR 2.1 million).

Accounting principles

Accounts receivables are receivables that result from selling goods or delivering services to customers in the ordinary course of business. Other receivables are contract assets, other accrued income and financial assets with fixed or determinable payments that are not quoted in an active market. Accounts receivables and other receivables are classified as current assets if customer payment is expected to be received within one year. Otherwise, they are presented as non-current assets. The expected credit losses are assessed and entered in accordance with the accounts receivable age analysis on the basis of the classification. The history information and knowledge of the customers' payment behaviour are also taken into account. Changes in impairment loss for doubtful accounts receivable are recognized as expenses in the consolidated statement of income.

Componenta mainly does not receive advance payments. The order book includes the confirmed customer orders for the following two months.

15 Other short-term receivables and accrued income

EUR thousand	Dec 31, 2024	Dec 31, 2023
Loan receivables	3	3
Prepayments and accrued income	634	738
Other receivables	247	198
Total	885	939

Prepayments and accrued income include mainly prepaid accrued expenses.

Prepayments and other accrued income

EUR thousand	Dec 31, 2024	Dec 31, 2023
Energy tax	30	18
Personnel	155	154
Insurance	60	34
Other accrued income	389	533
Total	634	738

16 Deferred tax assets and liabilities

Changes in deferred taxes during the financial year 2024

EUR thousand	at 1 Jan 2024	Recognized in income statement	Recognized in equity at 31 Dec 2024
Deferred tax assets
Other differences*	2,328	-1,794	534
Total	2,328	-1,794	534
Offset with deferred tax liabilities	-2,328	1,794	-534
Total	0	0	0

* Other differences mainly consist of temporary differences between taxation and accounting.

EUR thousand	at 1 Jan 2024	Recognized in income statement	Recognized in equity	at 31 Dec 2024
Deferred tax liabilities
Valuing tangible assets at fair value when merging businesses	228	-84		144
Accelerated depreciation	55			55
Revaluation of buildings and land areas	109			109
Finance leases	-154	-24		-178
Other differences*	2,090	-1,686		404
Total	2,328	-1,794		534
Offset with deferred tax assets	-2,328	1,794		-534
Total	0	0		0
EUR thousand	at 1 Jan 2023	Recognized in income statement	Recognized in equity

Deferred tax assets				at 31 Dec 2023
Other differences*	1,614	714
Total	1,614	714
Offset with deferred tax liabilities	-1,593	-735
Total	21	-21
In 2023 deferred tax assets were recorded EUR 0.0 million.
EUR thousand	at 1 Jan 2023	Recognized in income statement	Recognized in equity
Deferred tax liabilities				2,328 2,328 -2,328 0 at 31 Dec 2023
Valuing tangible assets at fair value when merging businesses				228
Accelerated depreciation				55
Revaluation of buildings and land areas				109
Finance leases				-154
Other differences*				2,090
Total				2,328

The net amount of deferred tax assets, which mainly consist of unused tax losses, was EUR 0.0 million (EUR 0.0 million). The value of deferred tax liabilities was EUR 0.5 million (EUR 2.4 million) before offset with deferred tax assets.

* Other differences mainly consist of temporary differences between taxation and accounting.

	President and CEO's	Board of Directors'	Sustainabilit
Contents	review	report	statement

Sustainability

Consolidated financial statements

Parent company financial statements

Unrecognized deferred tax assets from confirmed losses

	Confirmed losses	Deferred tax asset	Year of expiration
	17,028,336.39	3,405,667.28	2024
	11,926,368.86	2,385,273.77	2025
	27,422,025.92	5,484,405.18	2026
	27,020.14	5,404.03	2027
	7,685,016.95	1,537,003.39	2028
	709,152.02	141,830.40	2029
	204,016.49	40,803.30	2030
	6,551.00	1,310.20	2032
Total	65,008,487.77	13,001,697.55

Accounting principles

Deferred tax assets for confirmed losses or for losses for the financial period have only been recognised to the extent to which it is probable that future profits will be generated that can be offset with the temporary differences. If a Group company has in the recent past made a loss, a deferred tax asset is only recorded to the extent that the company has sufficient taxable temporary differences or some other convincing proof of its ability to make use of the tax loss. Deferred tax assets are recognised only if it is considered likely that they are recoverable, which will depend on the existence of sufficient future taxable income. Assumptions of future taxable income are based on the management's estimates of future cash flows. These estimates of future cash flows are, in turn, dependent on the management's estimates, inter alia, of the future volume of sales, operating expenses and financing costs. The company's ability to accumulate taxable income also depends on general economic, financial, competitive and regulatory factors that are not under its own control. Estimates and assumptions involve risks and uncertainties, and thus it is possible that expectations change as circumstances change. This may affect the amount of deferred tax assets and liabilities on the balance sheet and the amount of temporary differences.

A deferred tax liability is recognised for the retained earnings of subsidiaries only if it can be considered that the tax payment will take place in the foreseeable future. Deferred tax liabilities have been calculated by using effective tax rates.

17 Investment properties

EUR thousand	2024	2023
Book value Jan 1	0	17
Write-downs	0	-17
Book value Dec 31	0	0

Accounting principles

The real estate companies within the Group hold land areas and buildings, which the Group do not have in own use. Therefor these real estate companies are classified as investment properties according to IAS 40 Investment Property. The Group applies the fair value model for measuring the investment properties. The fair value reflects the market conditions at the end of the reporting period with no transaction costs incurred.

Investment properties are not depreciated. Gains and losses arising from change in the fair value of investment properties are recognised in profit or loss for the period in which they arise and are presented in depreciations, amortization and write-downs in the income statement.

In 2023, the management has used judgment and decided to write down the investment properties due to their limited financial statement information.

18 Share capital, share premium reserve and other reserves

review

	Number of shares, (1,000)	Share capital, EUR thousand	Unrestricted equity reserve, EUR thousand	Other reserves, EUR thousand
Jan 1, 2024	9,713	1,000	17,010	2,507
Dec 31, 2024	9,713	1,000	17,010	2,507
			Unrestricted
	Number of shares, (1,000)	Share capital, EUR thousand	equity reserve, EUR thousand	Other reserves, EUR thousand
Jan 1, 2023		1,000	17,010	2,507
Dec 31, 2023	EUR thousand	1,000	17,010	2,507

Other reserves include the conversion option component of the convertible capital notes EUR 2.5 million (EUR 2.5 million), share-based payments EUR 0.0 million (EUR 0.0 million) according to IFRS 2.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

19 Capital management

Componenta Group's objective for capital management is to ensure the Group's viability to operate in all circumstances. The sector in which Group operates is by nature relatively capital intensive and thus requires active measures to optimize the capital structure.

The Board of Directors and Corporate Executive Team regularly monitor the capital structure of the Group. The equity ratio improved from previous year and stood at 41.3% (45.0%). The weakened equity ratio was due to higher interest-free debts than the previous year. The net gearing decreased from previous year and stood at 21.2% (35.6%). The improvement in the net gearing ratio was mainly influenced by stronger liquidity at the end of the year than in the previous year. On the other hand, the net gearing ratio was weakened by working capital loan of EUR 2 million taken out during the accounting period.

The key indicators for capital structure

%	Dec 31, 2023	Dec 31, 2022
Equity ratio	41.3	45.0
Net gearing	21.2	35.6

20 Share-based payment

Share-based incentive scheme

Componenta Corporation has one long-term share-based incentive scheme: a Stock Option Plan.

Stock options encourage key personnel to work long-term in the company in order to increase shareholder value. The goal of stock options is to bind key personnel to the company. The option rights are based on the key persons' valid employment or business relationships, and if the key person's employment ends before the subscription period for the shares, the person loses his or hers option rights immediately. The target group of the option program includes a maximum of 20 key personnel, including members of the group's Corporate Executive Team.

In the fiscal year 2024, a total of 133,326 option rights 2023B were allocated to personnel. The allocation was based on the decision of Componenta Corporation's board of directors in 2023 regarding the 2023 option program aimed at key employees, based on the authorization given by the company's annual general meeting on April 13, 2023.

At the end of the fiscal year 2024, Componenta had two previously decided option programs in addition to the above-mentioned option program 2023B: 2023A and 2018C. In addition, the option program 2018B ended in the fiscal year 2024.

In the accounting period, no option rights from valid option programs have been used to subscribe for shares.

Stock Option Plans valid during the accounting period
	2018B	2018C	2023A	2023B
Initial subscription price, EUR	0.13*	3.03**	3.00***	2.35****
Current subscription price, EUR	3.85	3.03**	3.00***	2.35****
Duration (years)	4.8	4.4	4.9	4.9
Expected volatility, %	59.9	43.1	48.9	46.9
Risk-free interest rate, %	0.00	0.00	2.77	2.89
Fair value of option at the date of
issue, EUR	0.05	2.79	1.38	1.05
Number of plan participants	7	16	15	14
Option rights granted to personnel
based on option programs	27,898	65,362	133,348	133,326
Option rights held by the company	8,400	11,100	0	0
The number of shares that one
option right entitles to subscribe	2	2	1	1
	Dec 1, 2022–	Dec 1, 2023–	Jun 1, 2026–	Jun 1, 2027–
Share subscription period	Nov 30, 2024	Nov 30, 2025	May 31, 2028	May 31, 2029

Possible dividends are taken into account in the calculations.

* Trade-weighted average share price on Nasdaq Helsinki Ltd 14 October–8 November 2019.

** Trade-weighted average share price on Nasdaq Helsinki Ltd 14 October–8 November 2020.

*** Trade-weighted average share price on Nasdaq Helsinki Ltd 21 April–22 May 2023.

**** Trade-weighted average share price on Nasdaq Helsinki Ltd 22 April–21 May 2024.

The initial subscription price of the 2018B option program in the table above is a price data before Componenta's reverse split of shares in 2020. Option rights 2018B have expired on 30 November 2024.

Share-based payments

Share-based payments recognized as an expense

	Jan 1-Dec 31,	Jan 1-Dec 31, 2023
EUR thousand	2024
To be paid in shares	77	103
Total	77	103

Accounting principles

The fair value of granted options from option programs has been determined at the grant date and will be recognised as an expense over the vesting period. The fair value is calculated by using the Black-Scholes option price model. At each consolidated statement of financial position date, the Group revises its estimates of the number of options that are expected to become exercisable and recognise the impact of the revision of original estimates as an expense in the statement of income. When options are exercised, the impacts of changes in the share capital which exceed the accounting par value of the shares are included in the paid-up unrestricted equity reserve.

21 Pension obligations and other benefit plans

Pension obligations

Most of the Group's pension plans are defined contribution plans.

Other benefit plans

The Group has one defined benefit plan, reward for years of service. This reward is applied in all of the companies within the Group. The net defined benefit obligation recognised in the balance sheet at year end 2024 was EUR 118.5 thousand (EUR 118.5 thousand). There are no plan assets in the defined benefit plan. This benefit plan has no actuarial gains and losses in 2024 or 2023. Assumptions used in calculating benefit obligation were; discount rate 3.2% and average future salary increase 2.7%. The duration of the defined benefit obligation is assumed to be 5.6 years.

Sensitivity analysis

		Defined Benefit Obligation
	Change in
Effect of a change in assumption used	assumption	Increase	Decrease
Discount rate	0.5%	-2.8%	2.9%
Future salary increase	0.5%	2.9%	-2.8%

22 Provisions

Current

Reorganisation provisions	Environmental provisions	Other provisions*	Total
0	0	334	334
-	-	24	24
-	-	-	-
0	0	358	358

EUR thousand	Reorganisation provisions	Environmental provisions	Other provisions*	Total
Jan 1, 2023	0	0	363	363
Additions to provisions	-	-	-	-
Utilized during the period	-	-	-29	-29
Dec 31, 2023	0	0	334	334

	Jan 1–Dec 31,	Jan 1–Dec 31,
EUR thousands	2024	2023
Change in provisions recognised as operating expenses in
income statement, increase of expense (-), decrease of expense (+)	-24	29

The Group Management is not aware of any significant lawsuits or claims against the Group at the end of the reporting period that would cause recognition of provisions.

* Other provisions mainly consist of the provision for the restoration of business premises.

Accounting principles

A provision is recognised on the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, it is probable that the obligation will have to be settled, and the amount of the obligation can be reliably estimated. If it is possible to obtain compensation for some of the obligation from a third party, the compensation is recognised as a separate asset item, but only when it is, in practice, certain that the compensation will be obtained.

A provision for restructuring is recognised when the Group has drawn up a detailed restructuring plan and restructuring has either commenced or the plan has been announced publicly.

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

23 Financial risks and instruments

The target of management of financial risks related to business operations of Componenta Group is to hedge the profit and the balance sheet of the Group. In the long-term the Group is always exposed to economic risks. Therefore, the amount of financial risks is aimed to be limited to acceptable level by using financial instruments commonly used in the financial markets. The administration of the financial risks is centralized to Group Treasury.

Values of financial assets and liabilities

Dec 31, 2024, EUR thousand	Financial assets and liabilities measured at amortised cost	Lease liabilities	Total
Non-current assets
Other receivables	90		90
Current assets
Cash and cash equivalents	8,703		8,703
Accounts receivables	1,707		1,707
Total financial assets	10,500		10,500
Non-current liabilities
Loans from financial institutions	2,874		2,874
Lease liabilities		7,821	7,821
Other loans	2		2
Trade payables and advances received	119		119
Current liabilities
Loans from financial institutions	1,189		1,189
Lease liabilities		2,285	2,285
Other loans	3		3
Trade payables and advances received	10,613		10,613
Total financial liabilities	14,801	10,106	24,907

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

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

statement Contents President and CEO's

Sustainability

Consolidated financial statements

Financing and liquidity risks

The financing of the Group business operations is based on business income financing, factoring financing of trade receivables, committed and drawn loans from financial institutions and revolving credit facilities which are valid until September 2025.Revolving credit facility agreements must be renewed before expiring. Factoring financing arrangements are in force indefinitely. Revolving credit facilities and factoring financing agreements contain terms on the basis of which they can also be terminated during the agreement period. In the Group's view, these terms are normal and are not likely to be breached. The termination of factoring arrangements or revolving credit facilities or nonrenewal of revolving credit facilities could create uncertainties and risks to Componenta's liquidity, but the uncertainties and risks are mitigable. The Group's good level of liquidity at the end of 2024 is an essential factor in managing liquidity risks. The company has analyzed cash flow forecasts for the 12-month period after the financial statement date. In addition to income financing, the most important assumptions in the forecasts relate to the working capital loan agreed with LocalTapiola and Elo, the continuity of factoring financing and the level of use of revolving credit facilities and the convertible debenture arrangement described below. Componenta estimates that the Group's liquidity will be sufficient for the next 12 months.

At the end of the financial period 31 December 2024, Componenta's cash and cash equivalents totalled EUR 8.7 million (EUR 5.3 million). Additionally at the end of the financial period, The Group had EUR 4.0 million (EUR 4.0 million) of undrawn committed credit facilities.

Componenta has on 20 May 2024 entered into a convertible debenture arrangement with a US investor MPL, which is based in New York City, for providing funding of up to USD 3,000,000 to the Company which is valid from 1 July 2025 to 31 December 2027.

On 9 April 2024, Componenta agreed on a working capital loan totaling EUR two (2) million with LocalTapiola Group and Elo Mutual Pension Insurance Company. The withdrawal was made during the second quarter of 2024. The loan period is five years.

Componenta's credit facilities and working capital loans include the following financial covenants: net interest-bearing debt / rolling 12-month EBITDA no higher than 3.0, and an equity ratio of at least 25%. As a result of a low rolling 12-month EBITDA, the first covenant was not met on 30 June 2024, and the company received waivers from the financiers during June 2024 for the situation on 30 June. On the balance sheet date on 31 December 2024, Componenta's financial situation met all the covenants included in the loan agreements. At the financial statement date of 31 December 2024, Componenta had a total of EUR 4,063 thousand in loans subject to covenant terms.

Installments and interest payments on financial liabilities 2024

EUR thousand	2025	2026	2027	2028	2029	2030 +	Total
Loans from financial
institutions	-1,189	-1,174	-1,200	-400	-100	-	-4,064
Lease liabilities *	-2,304	-2,047	-1,660	-1,478	-1,456	-1,162	-10,106
Trade payables	-10,613	-119	-	-	-	-	-10,732
Interest expenses on loans	-729	-533	-346	-204	-109	-40	-1,962
Other debts **	-3	-2	-	-	-	-	-5
Total	-14,839	-3,875	-3,207	-2,082	-1,665	-1,202	-26,869

Installments and interest payments on financial liabilities 2023

EUR thousand	2024	2025	2026	2027	2028	2029 +	Yhteensä
Loans from financial institu
tions	-1,141	-772	-800	-800	-	-	-3,513
Lease liabilities *	-1,932	-1,974	-1,775	-1,446	-1,341	-2,393	-10,861
Trade payables	-8,044	-175	-	-	-	-	-8,219
Interest expenses on loans	-808	-618	-449	-287	-172	-144	-2,478
Other debts	-	-	-	-	-	-	0
Total	-11,925	-3,539	-3,024	-2,534	-1,513	-2,536	-25,071

* For leases, repayments of the lease liability and interest expenses are used as a sufficient approximation of actual rents paid. Only changes in interest rates cause a small difference in the actual cash flow. The interest to be paid has been calculated with prevailing nominal interest rates. The actual interest payments on variable interest contracts will, therefore, probably differ slightly from the figures presented in the table.

** Other debts in 2024 were hire purchase agreements.

The figures have not been discounted to correspond to their present values. The figures are valid only on the closing date and the amount of interest on floating rate contracts may vary from actual cash flows. The repayment table for financial liabilities is not meant to portray the Group's expected total cash flow.

Board of Directors' report

Parent company financial statements

Interest-bearing financial liabilities

EUR thousand	Dec 31, 2024	Dec 31, 2023
Non-current interest-bearing financial liabilities
Loans from financial institutions	2,874	2,372
Lease liabilities	7,821	8,922
Other debts*	2	0
Total	10,697	11,294

Current interest-bearing financial liabilities
Loans from financial institutions	1,189	1,141
Finance lease liabilities	2,285	1,939
Other debts*	3	0
Total	3,478	3,080
Total interest-bearing liabilities	14,175	14,374

* Other debts in 2024 were hire purchase agreements.

Currency breakdown of interest-bearing financial liabilities

%		2024	2023
Non-current	EUR	100.0	100.0
Total		100.0	100.0
Current	EUR	100.0	100.0
Total		100.0	100.0

Cash flows are settled in the nominal currency of each liability agreement.

Range of nominal and effective interest rates for interest-bearing financial liabilities

%	2024 Nominal interest rates	2024 Effective interest rates	2023 Nominal interest rates	2023 Effective interest rates
Loans from financial institutions	7.1-8.6	7.3-9.0	8.9-9.9	9.4-10.4
Lease liabilities	2.5–11.6	2.5–11.6	2.5–11.6	2.5–11.6
Other debts*	8.0–8.0	8.0–8.0	0.0–0.0	0.0–0.0

* Other debts in 2024 were hire purchase agreements.

Foreign exchange risk

The Group's foreign exchange risk is divided into transaction risk, which arises from income and expenses denominated in foreign currencies, and translation risk, which arises from equity investments and related profit or loss denominated in foreign currencies. The transaction position is calculated from the foreign currency denominated trade receivables and trade payables in the balance sheet and initial exposures derived from the highly probable forecasted foreign currency cash flows. The highly probable period is defined normally within 1-6 months but the highly probable period can be extended up to 12 months. These form the part of the transaction position in which changes affect 'Operating profit'. The other part of transaction exposure includes items where the impact of changes in exchange rates are recorded in the income statement in 'Financial income and expenses' such as foreign currency cash in hand and at bank and the Group's internal and external foreign currency loans and loan receivables.

The translation position is determined from the shareholders' equity and retained earnings of those foreign subsidiary and associated companies of the Group whose business currency is not the euro. At the end of the financial period, the Group does not have the translation risk as the business currency of all Group companies is euro.

To hedge against changes in exchange rates, the Group uses foreign currency loans and deposits and other natural hedging relationships. In addition, common derivative instruments can be used such as foreign currency forward contracts and options, for which pricing on the market is reliable. Foreign currency derivatives mature in less than one year.

At the end of the reporting period, the Group does not have open currency position.

Interest rate risk

The interest rate risk to which the cash flow is exposed arises mainly from the Group's loan portfolio and leases. The interest rate risk arises as changes in market interest rates and in interest rate margins affect financial expenses and income. The interest rate risk is managed by spreading the loan portfolio between fixed and floating interest rate loans and investments. In addition, interest rate derivatives can be used.

Income statement - financial expenses

	Dec 31, 2024 for 2025	Dec 31, 2023 for 2024
EUR thousand	Sensitivity interest rate curve +100bp	Sensitivity interest rate curve +100bp
Interest-bearing
financial liabilities	-25.2	-18.8

The sensitivity analysis estimates the parallel rise in the interest rate curve at 1.0 percentage points. A positive change indicates a decrease and a negative change an increase in interest expenses.

The assumption in the calculation is that loans that mature are refinanced with comparable instruments. It is also assumed that no repayments are made, thus the calculations only take into account the interest rate renewal risk regarding interest-bearing loans and their nominal interest rates. Leasing agreements are not included in the calculation. As the interest rate risk on the asset side of the balance sheet is not significant it has not been included to the interest rate risk sensitivity analysis.

Commodity risk

The Group's commodity risk arises mainly from the price risk of the electricity and of the raw materials. A moderate share of the electricity price has been fixed for the next 12 months forward. For the Group's business operations it is imperative that it can source certain raw materials, such as recycled steel and iron blocks at competitive prices. The cost risk associated with raw materials is primarily managed using pricing agreements, with which the prices of products are adjusted according to the prices of their raw materials. The Group also has the availability risk of the raw materials which however has been decreased as the competition between suppliers of major raw materials has been established, and it has been moved from pre-payments to normal payment terms within the limits provided by the suppliers.

Accounting principles

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

Componenta has also assessed the impact of the situation in Ukraine as well as the tightened geopolitical situation on the most significant financial risks. From Componenta's point of view, the greatest impact has been on the funding and liquidity risk.

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

Cash and cash equivalents include cash in hand and cash in bank accounts as well as shortterm bank deposits.

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

24 Other non-interest bearing liabilities and accruals

Non-current non-interest bearing liabilities

EUR thousand	Dec 31, 2024	Dec 31, 2023
Other liabilities	946	625
Total	946	625

Non-current non-interest bearing other liabilities mainly include liabilities related to financing arrangements for certain equipment purchases by Componenta Manufacturing Oy.

Current non-interest bearing liabilities

EUR thousand	Dec 31, 2024	Dec 31, 2023
Trade payable	10,503	7,926
Accruals	7,315	6,229
VAT liabilities	1,497	580
Other liabilities	2,773	1,657
Total	22,088	16,392

Current non-interest bearing other liabilities consist mainly of the purchase price debt for properties used by the Kalajoki and Sepänkylä businesses and withholding tax liabilities related to salaries of personnel.

Accrued expenses and deferred income

EUR thousand	Dec 31, 2024	Dec 31, 2023
Personnel expenses	6,440	5,787
Other accruals	875	443
Total	7,315	6,229

25 Reconciliation of financial liabilities to cash flow statement

	Long-term interest-bearing	Short-term interest-bearing
Te	liabilities	liabilities	Total	Unrestricted equity reserve (SVOP)
Jan 1, 2024	11,294	3,080	14,374	17,010
Drawdowns *)	2,000	4,000	6,000
Repayments on interest bearing debt	-1,450	-4,000	-5,450
Repayments on leasing debt		-2,090	-2,090
Change in liabilities which does not include cash flow:	-1,147	2,489	1,341
Dec 31, 2024	10,697	3,478	14,175	17,010

* In April 2024, Componenta agreed on a new working capital loan of two (2) million euros with LocalTapiola and Elo Mutual Pension Insurance Company. The loan was drawn down in full in April 2024, and at the end of the financial year, EUR 1.7 million remained on the loan. The term of the loan is five years. Other loan conditions are usual. Componenta agreed on the previous working capital loan with LocalTapiola and Elo Mutual Pension Insurance Company in December 2022. At the end of the financial year, EUR 2.4 million remained on this loan. In total, Componenta repaid working capital loans to Elo and LocalTapiola by EUR 1.1 million (EUR 0.8 million) in 2024. Componenta has factoring and revolving credit limit agreements with Avida Finans Ab, filial i Finland, signed in 2023. The agreements replace the previous similar agreements with Norra Finans Oy, which the company terminated in the fall of 2023. The EUR 4.0 million revolving credit limit with Avida Finans Ab, filial i Finland was fully available at the end of the financial year 2024. EUR 4.0 million was drawn down from the credit limit agreements during 2024 and the same amount was repaid during the financial year 2024.

	Long-term interest-bearing	Short-term interest-bearing
Te	liabilities	liabilities	Total	Unrestricted equity reserve (SVOP)
Jan 1, 2023	9,849	3,569	13,418	17,010
Drawdowns *)	2,000		2,000
Repayments on interest bearing debt	-1,952		-1,952
Repayments on leasing debt		-1,748	-1,748
Change in liabilities which does not include cash flow:	1,397	1,259	2,656
Dec 31, 2023	11,294	3,080	14,374	17,010

* In December 2022, Componenta agreed on a working capital loan of four (4) million euros with LocalTapiola and the Mutual Pension Insurance Company Elo. EUR 2.0 million was withdrawn from the loan in December 2022, and EUR 2.0 million in March 2023. The term of the loan is five years. Other loan conditions are usual. The first repayment of the loan was in March 2023 and in total in 2023 repayments for the loan were EUR 0,8 million. In autumn 2023, Componenta signed new factoring and committed credit facility agreements with Avida Finans Ab, filial i Finland. The agreements replace similar agreements previously with Norra Finans Oy, which the company terminated in the fall of 2023. The EUR 4,0 million limit of the new credit facility agreement was fully available at the end of 2023 fiscal year. No withdrawals were made from the credit facility agreements during the 2023 financial year.

Sustainability statement Contents President and CEO's

Consolidated financial statements

26 Lease liabilities

EUR thousand	2024	2023
Carrying amount Jan 1	10,861	9,962
Additions to lease liabilities	1,352	2,819
Disposals to lease liabilities	-17	-173
Lease payments	-2,090	-1,746
Carrying amount Dec 31	10,106	10,861

The representation of current and non-current lease liabilities is presented in note 23. The weighted average of the Group's incremental borrowing rate, which was applied on lease liabilities was 2.5%.

Items arising from leases in the consolidated income statement

EUR thousand	Jan 1- Dec 31, 2024	Jan 1- Dec 31, 2023
Depreciation from right-of use assets	-2,238	-2,170
Interest expense from lease liabilities	-531	-519
Expense from leases of low value assets and short-term leases	-334	-339
Lease income from third parties	342	347
Total	-2,761	-2,681

Accounting principles

Componenta assesses at inception of a contract whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease liabilities are recognized on the commence date of the lease. The liabilities are measured on the commence date at the present value of the remaining lease payments, discounted by using the lessee's incremental borrowing rent. Lease term is the period during which the lease can not be cancelled, extended with the period covered by an extension option, if it is reasonably certain to exercise the extension option and period covered by a termination option, if it is reasonably certain to exercise the termination option. Management estimates the lease term of leases valid until further notice at inception and the measures of right-ofuse assets and lease liabilities are recognized based on these estimates.

Lease payments are allocated between finance cost and decrease of liability. Lease liabilities are remeasured if future lease payments change due to an index or a rate change or when the Group's estimate of excercising a possible extension option has changed. If the lease liability is remeasured, the right-of-use asset is recovered assumingly.

Componenta has decided to utilize the practical expedient permitted by the standard and does not apply the standard on leases of low value assets, but instead recognizing the rents as an expense over the lease term. Leases of low value assets mainly include IT and office equipment. Additionally the Group recognizes leases that have a lease term of 12 months or less as leases of low value assets and applies a single discount rate to a portfolio of leases with reasonably similar characteristics.

27 Contingent liabilities

EUR thousand	Dec 31, 2024	Dec 31, 2023
Business mortgages
For own debts	11,500	17,600
Other leases	347	460
Other commitments	68	68
Total	11,915	18,128

Liabilities secured with real estate, pledges for other business guarantees

EUR thousand	Dec 31, 2024	Dec 31, 2023
Liabilities secured with real estate or business mortgages
Loans from financial institutions	4,064	3,513
Total	4,064	3,513

During the financial year 2024, Componenta Corporation has, as part of the settlement agreement, renounced the shares of Majakka Voima Oy, which is in liquidation. No profit has been realised from the sale of the shares in the result for the financial year. According to Componenta's assessment, there are no financial liabilities to Componenta, which is why the figures for Componenta's financial year do not include any provisions or contingent liabilities related to this matter.

Sustainability statement Contents President and CEO's

Consolidated financial statements

28 Related party disclosures

Company	Domicile	Group share of holding, %	Parent company share of holding, %
Componenta Castings Oy	Karkkila, Finland	100	100
Componenta Manufacturing Oy	Jyväskylä, Finland	100	100
Karkkilan Valimokiinteistö Oy	Karkkila, Finland	100	-
Oy Högfors-Ruukki Ab	Karkkila, Finland	100	100
Pietarsaaren Vanha Valimo Oy	Pietarsaari, Finland	100	-

Fees, salaries and other benefits of the Board of Directors, President and CEO and other members of the Corporate Executive Team (CET)

Jan 1–Dec 31, 2024, EUR	Salaries, fees & fringe benefits	Short-term incentives	Long-term incentives (Share-based payments)	Total
Board of Directors	176,000	-	-	176,000
President and CEO Sami Sivuranta	277,083	-	-	277,083
Other members of CET	553,706	-	-	553,706
Total	1,006,789	-	-	1,006,789

Jan 1–Dec 31, 2023, EUR	Salaries, fees & fringe benefits	Short-term incen tives	Long-term incenti ves (Share-based payments)	Total
Board of Directors	125,000	-	-	125,000
President and CEO Sami Sivuranta	281,175	-	-	281,175
Other members of CET	581,940	-	-	581,940

Remuneration of the Board of Directors and executive management

Remuneration and fees, 1,000 EUR	Jan 1–Dec 31, 2024	Jan 1–Dec 31, 2023
President and CEO Sami Sivuranta	277	281
Members of Board of Directors
Harri Suutari	50	50
Petteri Walldén	30	25
Anne Koutonen	30	25
Tomas Hedenborg	30	25
Lars Wrebo*	36	-
Total, Board of Directors	176	125

**Includes 6,000 euros in meeting-specific fees. A board member who lives outside of Finland and travels to Finland for a meeting is paid a per-meeting fee of 1,000 euros.

The retirement age of the President and CEO is 68 years.

Other related party disclosures

During 2024 and 2023 Componenta has not had any related party events deviating from normal commercial conditions. Componenta did not have any loan receivables from related parties in 2024 or 2023.

PARENT COMPANY FINANCIAL STATEMENTS

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Parent company financial statements

Parent company income statement, balance sheet and cash flow statement (according to Finnish Accounting Standards)

Parent company income statement

		Jan 1-Dec 31,	Jan 1-Dec 31,
EUR Thousand	Note	2024	2023
NET SALES	1	4,018.3	3,708.7
Other operating income	2	1.0	5.1
Operating expenses	3, 5, 6	-3,928.0	-3,762.5
Depreciation, amortization and write-down of non-current assets	4	-55.9	-66.1
OPERATING RESULT		35.4	-114.9
Financial income and expenses in total	7	1,008.6	776.8
RESULT AFTER FINANCIAL ITEMS		1,044.0	661.9
Appropriations	8	300.0	-
RESULT AFTER APPROPRIATIONS		1,344.0	661.9
RESULT FOR THE FINANCIAL PERIOD		1,344.0	661.9

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

Parent company balance sheet

EUR Thousand	Note	Dec 31, 2024	Dec 31, 2023
ASSETS
NON-CURRENT ASSETS
Intangible assets	9	105.6	102.8
Tangible assets	10	28.2	35.1
Investments	11	24,744.1	24,140.2
Non-current assets, total		24,877.8	24,278.1
CURRENT ASSETS
Non-current receivables	12	10,482.5	9,798.9
Current receivables	12	5,524.3	4,643.3
Cash and bank accounts		2,033.5	2,106.7
Current assets, total		18,040.3	16,548.9

TOTAL ASSETS		42,918.1	40,827.0

EUR Thousand	Note	Dec 31, 2024	Dec 31, 2023
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	13
Share capital		1,000.0	1,000.0
Unrestricted equity reserve		18,153.9	18,153.9
Retained earnings		17,080.0	16,418.0
Result for the financial period		1,344.0	661.9
Shareholders' equity		35,577.8	36,233.8
LIABILITIES	14, 15
Non-current liabilities		2,900.0	2,456.3
Current liabilities		2,440.3	2,136.9
Liabilities		5,340.3	4,593.2

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		42,918.1	40,827.0

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

Parent company cash flow statement

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
CASH FLOW FROM OPERATIONS
Result after financial items	1,344	662
Depreciations according to plan	56	66
Other income and expenses, non-cash items	-5	-18
Financial income and expenses	-1,009	-777
Cash flow before changes in working capital	387	-67
Changes in working capital
Non-interest bearing receivables
increase (-)/decrease (+)	-248	-757
Non-interest bearing liabilities
increase (+)/decrease (-)	-97	266
Cash flow from operating activities before financial
items and taxes	42	-558
Interest and payments paid from other financial
expenses of operations	-390	-293
Interest received from operations	1,194	812
CASH FLOW FROM OPERATING ACTIVITIES (A)	846	-39

	Jan 1-Dec 31,	Jan 1-Dec 31,
EUR Thousand	2024	2023
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditure in tangible and intangible assets	-52	-27
Loans receivables, decrease	3,330	4,772
Loans receivables, increase	-5,000	-8,500
CASH FLOW FROM INVESTING ACTIVITIES (B)	-1,722	-3,755
CASH FLOW FROM FINANCING ACTIVITIES
Share issue costs	-97	-
Repayments of current loans	-1,100	-800
Draw-downs of non-current loans	2,000	2,000
CASH FLOW FROM FINANCING ACTIVITIES (C)	803	1,200
CHANGE IN LIQUID ASSETS
(A + B +C) increase (+)/decrease (-)	-73	-2,594
Cash and bank accounts at the beginning of the period	2,107	4,701
Cash and bank accounts at period end	2,034	2,107
Change during the period	-73	-2,594

Board of Directors' report

Sustainability statement Contents President and CEO's

statements

Accounting principles for the parent company financial statements

Consolidated financial

Notes to the consolidated financial statements

Parent company financial statements

Componenta Corporation

Notes to the parent company financial statements

Accounting principles for the financial statements

The financial statements for Componenta Corporation have been prepared in accordance with laws and regulations governing the preparation of the financial statements in Finland. The financial statements have been prepared for the period between January 1 and December 31, 2024.

Accounting policies requiring management's judgement

The financial statements for the financial year 2024 have been prepared on a going concern basis. When assessing the principle of going concern, Componenta Corporation's management has taken into account the following factors.

Componenta Corporation's subsidiaries' sales volumes are at a reasonable level despite the risks caused by the Russian war of aggression and the intensified geopolitical situation. Shortterm, temporarily weakened order books have

been successfully responded to with timely and sufficient adjustment measures. There have been no disruptions or restrictions in the availability of electricity and, based on the indices, changes in the price of electricity are transferred to customer prices in an average of three months. This is essential for the going concern of Componenta Corporation's operations, as Componenta Corporation's main sources of revenue are service fees and trademark license fees charged from the subsidiaries. At the end of the review period Componenta Corporation's liquidity was at a good level. In addition, at the end of the review period, Componenta also had unused binding revolving credit facilities of EUR 4.0 million. Componenta agreed and raised a new working capital loan of EUR 2.0 million in April 2024. In addition, Componenta has agreed on a convertible bond facility of up to USD 3.0 million with the US investor MPL, which is available for the period July 1, 2025–December 31, 2027. According to the company's understanding, the Group can also

obtain debt financing from the market if necessary. The management has analyzed the companies' cash flow forecasts for the next 12 months.

Componenta Corporation continuously assesses the impact related to Russian war of aggression and the intensified geopolitical situation on its financial reporting. These aspects have not had a significant impact on Componenta Corporation in the financial year 2024. Componenta Corporation closely monitors market developments and the situation of its subsidiaries' customers and adjusts its own operations accordingly.

Foreign currency transactions

Business transactions in foreign currencies are recognized at the exchange rate on the date of the transaction. Receivables and liabilities in foreign currency are translated into euros at the European Central Bank's average exchange rate on the

Board of Directors' report

Sustainability statement Contents President and CEO's

statements

Consolidated financial

Notes to the consolidated financial statements

Parent company financial statements

balance sheet date. Exchange differences arising from translation are recognized in profit or loss under adjustments to sales or purchases or under financial items, depending on their nature.

Revenue recognition

The main sources of income for Componenta Corporations are Trademark License Fee and Service Fee charges from its subsidiaries. Sales of services are recognized as sales when the services have been rendered or when the work is being carried out.

Pensions

Statutory pension contributions for personnel are administered by external pension insurance companies and there are no uncovered pension liabilities. Pension insurance payments are allocated so that they correspond to the performance-based pay stated in the financial statements.

Leases

Leasing payments are treated as rental expenses. Liabilities falling due for payment in the future are presented under contingent liabilities in the notes to the balance sheet.

Income taxes

Taxes include taxes for the fiscal year calculated on the actual figures as well as taxes due for payment or refund from previous fiscal years that differ from the calculated taxes. Deferred tax assets have not been recorded for losses.

Non-current assets and depreciation

Intangible and tangible assets are recognized in the balance sheet at their historical cost less planned depreciation. Planned depreciation is calculated on a straight-line basis on the historical cost based on the probable useful life.

Intangible rights	3 - 10 years
Other long-term expenditure	3 - 10 years
IT equipment	3 - 10 years
Other machinery and equipment	10 - 25 years
Other tangible assets	5 - 10 years
Capital expenditure of non-current assets are
measured at cost, or fair value in case the fair
value is less than cost. Capital expenditure of non

current assets include shares in subsidiaries and other shares and investments. Further information on the principles of impairment testing is presented in the notes to the consolidated financial statements.

Valuation principles for investments in subsidiaries and receivables from subsidiaries

The Finnish subsidiary Componenta Castings Oy filed for corporate restructuring in accordance with local restructuring proceedings in 2016. Significant uncertainty relates to the cash generating ability of the subsidiary of Componenta Corporation and to its ability to pay their debts and, in accordance with the prudence concept, a reduction in value as prescribed in article 13 of chapter 5 of the Finnish Accounting Act has been applied to investments in this company and to receivables from it. The corporate restructuring of Componenta Castings Oy has been completed in the financial year 2021. Although the restructuring program has ended, according to the precautionary principle, no reversal of impairment has been made to the value of the shares. Receivables from subsidiaries have been granted on normal market terms and valued at their historical cost.

Cash and cash equivalents

Cash and cash equivalents include cash in-hand and bank account balances.

Board of Directors' report

statement Contents President and CEO's

Sustainability

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Option rights

The share subscription price using 2023B option rights is EUR 2.35 per share, which is the volumeweighted average price of the company's share on Nasdaq Helsinki Ltd between 22 April and 21 May 2024. The subscription price of shares subscribed for using 2023B option rights will be reduced by the amount of return of share capital per share and the amount of dividends distributed by the company and return of equity distributed from the unrestricted equity reserve per share. A maximum of 133,326 new shares in the company or shares held by the company can be subscribed for using 2023B option rights. The subscription period for

shares to be subscribed for using 2023B option rights will run from 1 June 2027 to 31 May 2029. The theoretical market value of a 2023B option right is around EUR 1.0532. The total theoretical market value of the option rights is around EUR 140,418. The theoretical market value of option rights has been calculated applying the Black-Scholes model under the following assumptions: share price EUR 2.36; share subscription price EUR 2.35 under an option right; risk-free interest rate 2.89%; option right validity around 5 years; and volatility 46.92%.

31 May 2028. There were a total of 76,462 option rights under the 2018C programme, of which 11,100 were held by the company. The share subscription price under the 2018C programme is EUR 3.03, and each option entitles its holder to subscribe for two Componenta shares. The subscription period for shares under the 2018C programme runs from 1 December 2023 to 30 November 2025.

Sustainability statement Contents President and CEO's

Consolidated financial statements

Parent company financial statements

Notes to the income statement

1 Net sales by market area

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Finland	4,018.3	3,708.7
Net sales total	4,018.3	3,708.7

2 Other operating income

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Other operating income	1.0	5.1
Other operating income total	1.0	5.1

3 Personnel expenses

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Salaries and fees	-2,181.9	-2,006.4
Pension costs	-335.8	-310.7
Other personnel costs	-35.5	-42.5
Total	-2,553.2	-2,359.6
Salaries and other remuneration of the
Corporate Executive Team	-812.6	-863.1
Fringe benefits of the
Corporate Executive Team	-18.1	-14.7
Average number of personnel	19	16

The salaries, fees and fringe benefits of the President and CEO and the Board of Directors are presented in the note 28 of the consolidated financial statements.

4 Depreciations and write offs

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Intangible assets
Other long-term expenditure	-49.0	-59.8
Tangible assets
Machinery and equipment	-6.9	-6.4
Total depreciation and write-downs	-55.9	-66.1

5 Other operating expenses

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Rents	-192.0	-137.6
Other operating expenses	-1,182.8	-1,265.4
Other operating expenses total	-1,374.8	-1,403.0

6 Audit fees

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Audit fees	-84.2	-84.0
Other fees	-10.0	-12.9
Total fees paid to auditors	-94.2	-96.9

7 Financial income and expenses

EUR Thousand	Jan 1-Dec 31, 2024	Jan 1-Dec 31, 2023
Interest and other finance income
Group companies	1,354.8	1,046.3
Others	82.3	40.8
Total	1,437.1	1,087.1
Interest and other finance expenses
Others	-428.5	-310.3
Total	-428.5	-310.3
Financial income and expenses, total	1,008.6	776.8
Financial income and expenses include exchange gains/losses (net)
Others	-3.3	-4.9

8 Appropriations

EUR Thousand	Jan 1-Dec 31, 2024 Jan 1-Dec 31, 2023
Group contribution	300.0 -
Total	300.0 -

Total -3.3 -4.9

Componenta Corporation • Annual Review 2024 > Parent company financial statements 117

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

Notes to the statement of financial position

Non-current assets

9 Intangible assets

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Other long-term expenditure
Acquisition cost at Jan 1	5,327.4	5,313.6
Additions	45.1	13.8
Acquisition cost at Dec 31	5,372.5	5,327.4
Accumulated planned amortization at Jan 1	-5,230.9	-5,171.1
Amortization during the period	-49.0	-59.8
Accumulated amortization at Dec 31	-5,279.9	-5,230.9
Book value at Dec 31	92.6	96.5

Advance payments and assets under construction

Total intangible assets	105.6	102.8

Acquisition cost at Dec 31	13.0	6.3
Additions	6.7	6.3
Acquisition cost at Jan 1	6.3	-

10 Tangible assets

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Machinery and equipment
Acquisition cost at Jan 1	1,030.8	1,023.8
Additions	-	7.0
Acquisition cost at Dec 31	1,030.8	1,030.8
Accumulated planned depreciation at Jan 1	-1,011.7	-1,005.4
Depreciation during the period	-6.9	-6.4
Accumulated depreciation at Dec 31	-1,018.6	-1,011.7
Book value at Dec 31	12.2	19.1
Other tangible assets
Acquisition cost at Jan 1	86.0	86.0
Acquisition cost at Dec 31	86.0	86.0
Accumulated planned depreciation at Jan 1	-70.0	-70.0
Accumulated depreciation at Dec 31	-70.0	-70.0
Book value at Dec 31	16.0	16.0

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

11 Investments

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Shares in Group companies
Acquisition cost at Jan 1	345,879.6	345,879.6
Additions	1,519.2	-
Acquisition cost at Dec 31	347,398.8	345,879.6
Accumulated write-downs at Jan 1	-324,895.3	-324,895.3
Accumulated write-downs at Dec 31	-324,895.3	-324,895.3
Book value at Dec 31	22,503.5	20,984.3
Capital note investments in Group companies
Acquisition cost at Jan 1	3,155.9	2,905.9
Additions	250.0	250.0
Disposals and re-classifications	-1,165.3	-

Acquisition cost at Dec 31	2,240.6	3,155.9

Componenta Corporation's subsidiaries, their domicile and their share of holding are listed in the note 28 of the consolidated financial statements.

Notes to the consolidated financial statements

CURRENT ASSETS

12 Receivables

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Non-current receivables
Loan receivables from group companies	10,482.5	9,798.9
Total non-current receivables	10,482.5	9,798.9
EUR Thousand	Dec 31, 2024	Dec 31, 2023
Current receivables
Receivables from group companies
Trade receivables	887.4	898.6
Loan receivables	3,473.4	2,486.7
Other receivables	300.0	-
Prepayments and accrued income	556.8	692.1
Total	5,217.6	4,077.3
Receivables from others
Trade receivables	1.0	-
Loan receivables	3.1	3.1
Other receivables	23.9	24.0
Prepayments and accrued income	278.7	538.9
Total	306.7	566.0
Total current receivables	5,524.3	4,643.3

Prepayments and accrued income

Interest receivables	510.9	698.2
Insurance payments	4.9	7.1
Others	319.7	525.7
Total	835.5	1,231.0

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

13 Shareholders' equity

	Unrestricted			Result for
Dec 31, 2024, EUR Thousand	Share capital	equity reserve	Retained earnings	the period	Total
Shareholders' equity Jan 1, 2024	1,000.0	18,153.9	16,418.0	661.9	36,233.8
Reclassifications			661.9	-661.9	0.0
Result for the financial period				1,344.0	1,344.0
Shareholders' equity Dec 31, 2024	1,000.0	18,153.9	17,080.0	1,344.0	37,577.8

	Unrestricted			Result for
Dec 31, 2023, EUR Thousand	Share capital	equity reserve	Retained earnings	the period	Total
Shareholders' equity Jan 1, 2023	1,000.0	18,153.9	15,730.8	687.2	35,571.9
Reclassifications			687.2	-687.2	0.0
Result for the financial period				661.9	661.9
Shareholders' equity Dec 31, 2023	1,000.0	18,153.9	16,418.0	661.9	36,233.8

Calculation of distributable equity

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Retained earnings	17,080.0	16,418.0
Unrestricted equity reserve	18,153.9	18,153.9
Result for the financial period	1,344.0	661.9
Total	36,577.8	35,233.8

Sustainability statement Contents President and CEO's

Consolidated financial statements

Parent company financial statements

14 Liabilities

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Interest bearing liabilities	4,100.0	3,200.0
Non-interest bearing liabilities	1,240.3	1,393.2
Total	5,340.3	4,593.2
Non-current liabilities
Loans from financial institutes	2,900.0	2,400.0
Other non-current interest free liabilities	-	56.3
Non-current interest bearing liabilities total	2,900.0	2,456.3
Non-current liabilities fall due as follows Later than one year but not later than five years	2,900.0	2,456.3
Total	2,900.0	2,456.3
Current liabilities
Liabilities to Group companies

Trade payables	5.4	5.2

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Liabilities to others
Loans from financial institutes	1,200.0	800.0
Trade payables	383.1	658.5
Other current liabilities	293.9	199.4
Accrued expenses and deferred income	557.8	473.7
Total	2,434.9	2,131.7
Current non-interest bearing liabilities total	1,240.3	1,336.9
Current liabilities total	2,440.3	2,136.9
Accrued expenses and deferred income
Annual salaries with social security	450.0	370.9
Pensions	24.2	41.1
Others	83.7	61.8
Total	557.8	473.7

Total liabilities	5,340.3	4,593.2

15 Secured liabilities, contingent liabilities and other commitments

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Plegdes
Real estate mortgages	6,800.0	5,200.0
On behalf of Group companies	4,700.0	4,700.0
Total	11,500.0	9,900.0

Other commitments

			Future payments of the lease liabilities
--	--	--	------------------------------------------	--

Not later than one year	15.1	18.7
Later than one year	9.2	16.0
Total	24.3	34.6

Liabilities secured with mortgages, pledges or other guarantees

EUR Thousand	Dec 31, 2024	Dec 31, 2023
Liabilities secured with real estate or
business mortgages
Loans from financial institutions	4,063.7	3,163.1
Total	4,063.7	3,163.1

Deferred tax assets and liabilities not recorded in the statement of the financial position

Unutilized tax losses for which the company has not recorded any deferred tax assets totalled EUR 49,688,103.09 (EUR 68,883,857.09). The related deferred tax receivables of these losses are EUR 9,937,620.62 (EUR 13,776,771.42).

Unrecognized deferred tax assets from confirmed losses

Year of expiration	Confirmed losses EUR	Deferred tax asset EUR
2024	14,593,630.26	2,918,726.05
2025	10,361,172.56	2,072,234.52
2026	17,434,427.55	3,486,885.51
2027	0.00	0.00
2028	7,036,325.99	1,407,265.20
2029	262,546.71	52,509.34
2030	0.00	0.00
2031	0.00	0.00
2032	0.00	0.00
2033	0.00	0.00
Total	49,688,103.09	9,937,620.62

and board of directors' report

The financial statement prepared in compliance with the applicable financial statement regulations gives a correct and sufficient picture of the assets, liabilities, financial position and profit or loss of both the company and the Group companies included in the consolidated financial statements.

The annual report contains a truthful account of the business development and performance of the company and of the companies included in its consolidated financial statements on the one hand, as well as a description of the most significant risks and uncertainties and the rest of the company's condition.

The sustainability statement included in the Board of Directors' report has been prepared in compliance with the reporting standards referred to in Chapter 7 of the Accounting Act and Article 8 of the Taxonomy Regulation.

Signatures for the financial statement and board of directors' report

Helsinki, March 27, 2025

Harri Suutari Anne Koutonen Petteri Walldén Chairman of the Board Vice Chairman of the Board Member of the Board

Signatures for the financial statement

report

Tomas Hedenborg Lars Wrebo Sami Sivuranta

Member of the Board Member of the Board President and CEO

The auditor's note

Our auditor's report has been issued today.

Helsinki, March 27, 2025

PricewaterhouseCoopers Oy Authorised Public Accountants

Ylva Eriksson Authorised Public Accountant

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Auditor's Report

(Translation of the Finnish Original)

To the Annual General Meeting of Componenta Corporation

Report on the Audit of the Financial Statements

Opinion

In our opinion

the consolidated financial statements give a true and fair view of the group's financial position, financial performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
the financial statements give a true and fair view of the parent company's financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements.

Our opinion is consistent with the additional report to the Board of Directors.

What we have audited

We have audited the financial statements of Componenta Corporation (business identity code 1635451-6) for the year ended 31 December 2024. The financial statements comprise:

● the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, which include material accounting policy information and other explanatory information

● the parent company's balance sheet, income statement, cash flow statement and notes.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and group companies are in accordance with the applicable law and regulations in Finland and we have not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are disclosed in note 3 to the Consolidated Financial Statements.

Sustainability statement

Consolidated financial statements

Parent company financial statements

Our Audit Approach

Overview

	• Overall group materiality: EUR 915 thousand
	• The group audit scope has included the parent company Componenta Corporation and its subsidiaries Componenta Castin gs Oy and Componenta Manufacturing Oy
	• Valuation of goodwill • Valuation of subsidiary shares and intercompany receivables in the parent company's financial statements

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial statements as a whole.

Overall group materiality	EUR 915 thousand (previous year EUR 950 thousand)
How we determined it	Overall group materiality is determined as approximately 1% of the group's 2024 net sales
Rationale for the materia lity benchmark applied	We chose net sales as the benchmark because it provides a steady annual basis for determination of the materiality. In our view, it is an appropriate benchmark, which the users of the financial statements regularly use to evaluate the performance of the group.

How we tailored our group audit scope

We tailored the scope of our audit, taking into account the structure of the Componenta Group, the accounting processes and controls, and the industry in which the group operates. All of Componenta Group's operations are in Finland. Audits were carried out in group companies that were considered significant either due to their importance or special nature, covering the majority of the group's turnover, assets and liabilities. For the remaining companies, we performed other audit procedures to ensure that there are no significant risks of a material error in the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Key audit matter in the audit of the group	How our audit addressed the key audit matter	Key audit matter in the audit of the parent company	How our audit addressed the key audit matter
Valuation of goodwill Refer to accounting principles and Note 11 of the consolidated financial statements		Valuation of subsidiary shares and intercompany receivables in the parent company's financial statements
Goodwill related to business combinations amounted to EUR 3,2 million in the consolidated balance sheet as of 31	Our audit procedures included for example the following procedure:	Refer to the accounting principles and to Note 11 and 12 of the parent company's financial statements
December 2024. Goodwill is tested for impairment annually or whenever impairment indicators have been noted. Testing is performed by comparing the recoverable amount of the cash generating unit to its carrying value. The recoverable amount is defined through the value in use method. Value in use calculation involves considerable management judgment specifically with respect to assumptions relating to sales growth, profitability, capital expenditures and discount rates. Changes in these assumptions can have a significant impact to the estimated future cash flows. Valuation of goodwill is considered a	– We gained an understanding of the methods and assumptions used by management in goodwill impairment testing. – We tested the mathematical accuracy of the calculations used. – We assessed the reasonableness of the estimated future revenues and profitability levels and their consistency with the approved budgets and forecasts. – We assessed the reasonableness of the discount rate used and compared selected assumptions used in determining the discount rate to observable market data.	The assets on Componenta Corporation's balance sheet consist to a large extent of subsidiary shares and loan receivables from subsidiaries. Management has used judgment in assessing the valuation of subsidiary shares and loan receivables. When making the assessment, management have considered among other things the subsidiaries' ability to generate income and their ability to continue as a going concern. Managament has used significant judgment and estimations of future development in assessing the effect of above mentioned matters in Componenta Corporations financial statements. For this reason, this matter is considered a key audit matters in the audit of the parent company.	Our audit procedures included for example the following procedure: – We assessed cash flow analysis prepared by management used as a basis of valuation of holdings in group undertakings and amounts owed by group undertakings. – We assessed the reasonableness of management assumptions relating to the estimated recoverable values by e.g., checking their consistency with the approved budgets and forecasts. – We assessed management´s estimates related to valuation of properties owned by subsidiaries.
key audit matter due to the significant management judgement involved in the valuation.	– We assessed estimation uncertainty by comparing actual net sales and profitability against forecasts from previous year. – We assessed reasonableness of the assumptions used by management in sensitive analysis. – We assessed the appropriateness of the notes to the consolidated financial statements.	There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements.

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or to cease operations, or there is no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company's or the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Reporting Requirements

Appointment

We were first appointed as auditors by the annual general meeting on 28 February 2011. Our appointment represents a total period of uninterrupted engagement of 14 years. Authorised Public Accountant (KHT) Ylva Eriksson was first appointed as auditor in charge by PricewaterhouseCoopers Oy by the annual general meeting on 8 April 2022.

Other Information

The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Review but does not include the financial statements or our auditor's report thereon.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable provisions, excluding the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions. Our opinion does not cover the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard.

Helsinki 27 March 2025

PricewaterhouseCoopers Oy Authorised Public Accountants

Ylva Eriksson

Authorised Public Accountant (KHT)

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Auditor's ESEF assurance report

Independent Auditor's Reasonable Assurance Report on the ESEF Financial Statements of Componenta Corporation

To the Management of Componenta Corporation

We have been engaged by the Management of Componenta Corporation (business identity code 1635451-6) (hereinafter also "the Company") to perform a reasonable assurance engagement on the Company's consolidated IFRS financial statements for the financial year 1 January – 31 December 2024 in European Single Electronic Format ("ESEF financial statements") version 5493000SDCOXVGZDWK18-2024-12-31-fi.zip.

Management's Responsibility for the ESEF Financial Statements

The Management of Componenta Corporation is responsible for preparing the ESEF financial statements so that they comply with the requirements as specified in the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 ("ESEF requirements"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of ESEF financial statements that are free from material noncompliance with the ESEF requirements, whether due to fraud or error.

Our Independence and Quality Management

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Consolidated financial statements

Notes to the consolidated financial statements

financial statements

Our Responsibility

Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we have performed and the evidence we have obtained.

We conducted our reasonable assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. That standard requires that we plan and perform this engagement to obtain reasonable assurance about whether the ESEF financial statements are free from material noncompliance with the ESEF requirements.

A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to obtain evidence about the ESEF financial statements compliance with the ESEF requirements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material noncompliance of the ESEF financial statements with the ESEF requirements, whether due to fraud or error. In making those risk assessments, we considered internal control relevant to the Company's preparation of the ESEF financial statements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, Componenta Corporations's ESEF financial statements for the financial year ended 31 December 2024 comply, in all material respects, with the minimum requirements as set out in the ESEF requirements.

Our reasonable assurance report has been prepared in accordance with the terms of our engagement. We do not accept, or assume responsibility to anyone else, except for Componenta Corporation for our work, for this report, or for the opinion that we have formed.

Helsinki 27 March 2025

PricewaterhouseCoopers Oy Authorised Public Accountants

Ylva Eriksson

Authorised Public Accountant (KHT)

Sustainability statement Contents President and CEO's

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Assurance report on the sustainability statement

(Translation of the Finnish Original)

To the Annual General Meeting of Componenta Oyj

We have performed a limited assurance engagement on the group sustainability statement of Componenta Oyj (1635451-6) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of the Board of Directors for the financial year 1.1.–31.12.2024.

Opinion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the group sustainability statement does not comply, in all material respects, with

1) the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards (ESRS);
2) the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).

Point 1 above also contains the process in which Componenta Oyj has identified the information for reporting in accordance with the sustainability reporting standards (double materiality assessment) and the tagging of information as referred to in Chapter 7, Section 22 of the Accounting Act. Our opinion does not cover the tagging of the group sustainability statement with digital XBRL sustainability tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting companies have not had the possibility to comply with that provision in the absence of the ESEF regulation or other European Union legislation.

Basis for Opinion

We performed the assurance of the group sustainability statement as a limited assurance engagement in compliance with good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

Our responsibilities under this standard are further described in the Responsibilities of the Authorized Group Sustainability Auditor section of our report.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

We draw attention to the fact that the group sustainability statement of Componenta Oyj that is referred to in Chapter 7 of the Accounting Act has been prepared and assurance has been provided for it for the first time for the financial year 1.1.–31.12.2024. Our opinion does not cover the comparative information that has been presented in the group sustainability statement. Our opinion is not modified in respect of this matter.

Authorized group sustainability auditor's Independence and Quality Management

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

The authorized group sustainability auditor applies International Standard on Quality Management ISQM 1, which requires the authorized sustainability

Board of Directors' report

Sustainability statement Contents President and CEO's

Parent company financial statements

audit firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director of Componenta Oyj are responsible for:

the group sustainability statement and for its preparation and presentation in accordance with the provisions of Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting standards and in which the information for reporting in accordance with the sustainability reporting standards has been identified;
the compliance of the group sustainability statement with the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088;
such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of a group sustainability statement that is free from material misstatement, whether due to fraud or error.

Inherent Limitations in the Preparation of a Sustainability Statement

The preparation of the sustainability statement requires a materiality assessment from the company in order to identify relevant disclosures. This significantly involves management judgment and choices. Sustainability reporting is also characterized by estimates and assumptions, as well as measurement and estimation uncertainty.

In addition, when reporting forward-looking information, the company must make assumptions about possible future events and disclose the company's possible future actions in relation to these events. The actual outcome may be different because predicted events do not always occur as expected.

Responsibilities of the Authorized Group Sustainability Auditor

Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of the group sustainability statement.

Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise professional judgment and maintain professional skepticism throughout the engagement. We also:

Identify and assess the risks of material misstatement of the group sustainability statement, whether due to fraud or error, and obtain an understanding of internal control relevant to the engagement in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Description of the Procedures That Have Been Performed

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected depend on

statement Contents President and CEO's Board of Directors' report

Sustainability

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

professional judgment, including the assessment of risks of material misstatement, whether due to fraud or error. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our procedures included e.g. the following:

We have interviewed the company's management and the persons responsible for collecting and reporting the information included in the group sustainability statement.
Through interviews, we obtained an understanding of the sustainability reporting process and the related internal controls and information systems.
We familiarised ourselves with the background documentation and records prepared by the company where applicable, and assessed whether they support the information contained in the group sustainability report.
We have tested the accuracy of the information presented in the group sustainability statement by comparing the information on a sample basis with supporting company documentation.
We have on a sample basis performed analytical assurance procedures and related inquiries, recalculation and inspected documentation, as well as tested data aggregation to assess the accuracy of the group sustainability statement.
We performed a site visit at a selected location.
We assessed the implementation of the company's double materiality assessment process against the requirements of ESRS standards and the compliance of the information provided for the double materiality assessment with ESRS standards.
We assessed whether the group sustainability statement in material respect meets the requirements of ESRS standards for material sustainability topics:
We obtained an understanding of the process by which a company has defined taxonomy-eligible and taxonomy-aligned economic activities and evaluated the regulatory compliance of the information provided.

Helsinki, 27 March 2025

BDO Oy

Authorized Sustainability Audit Firm

Laura Castrén

Authorized Sustainability Auditor

report

INFORMATION FOR INVESTORS

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Information for investors

Componenta's website at www.componenta.com features financial reviews, information about the members of the Corporate Executive Team and the Board of Directors, investor relations and sustainability materials, stock exchange and press releases, information about products and services, the Code of Conduct, the Corporate Governance Statement and the remuneration report, for example.

Our goal is to provide comprehensive information about Componenta, its operating environment and financial position for making investment decisions.

Prior to the publication of the financial statements release and interim reports, we observe a 30-day silent period, during which we do not hold investor meetings or comment on the company's performance.

Annual General Meeting

Componenta Corporation's Annual General Meeting will be held on Wednesday 23 April 2025. The notice of meeting has been published as a separate stock exchange release.

Participation right

Each shareholder who is registered on 9 April 2025 (the record date of the Annual General Meeting) in the shareholders' register of the company

maintained by Euroclear Finland Ltd. has the right to attend the Annual General Meeting.

Sustainability statement

Registration

Shareholders who have been entered into the shareholders' register of the company and who wish to attend the Annual General Meeting must register no later than 16 pm on 14 April 2025 on the company's website at https://www.componenta.com/ en/investors/corporate-governance/annual-generalmeeting-2025/ or by email to ir.componenta@ componenta.com.

Dividend

The Board of Directors proposes that no dividend be paid for the financial year 1 January to 31 December 2024.

Financial information in 2025

In 2025, Componenta will publish its financial reports as follows:

Business review for January–March 2025 on Friday 9 May 2025
Half-year financial report for January–June 2025 on Wednesday 23 July 2025

● Business review for January–September 2025 on Thursday 30 October 2025.

Componenta's publications and releases are available immediately after their time of release on Componenta's website.

Componenta's annual review for 2024 is available on Componenta's website at www.componenta. com. Previously published annual reports, sustainability reports and interim reports can also be found on the company's website. Paper versions can be ordered by sending an email to [email protected].

By registering on Componenta's website, you can subscribe to the company's releases and receive them to your email immediately after their publication.

All Componenta's financial publications are available in Finnish and English.

Investor relations and contacts

Sami Sivuranta	Marko Karppinen
President and CEO	CFO
tel. +358 10 403 00	tel. +358 10 403 00

Componenta also serves investors and shareholders by email at ir.componenta@ componenta.com.

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Componenta Corporation Corporate Governance Statement 2024

The parent company of the Componenta Group is Componenta Corporation ("Componenta" or the "Company"), a public company registered in Finland whose shares are listed on the Helsinki Stock Exchange. The parent company and its subsidiaries form the Componenta Group.

Componenta's Corporate Governance Statement for 2024 has been prepared in accordance with the Finnish Corporate Governance Code 2025 published by the Securities Market Association. The Corporate Governance Statement is published as part of the Annual Review 2024 on the company's website at www.componenta. com simultaneously with, but separately from, the Board of Directors' report of Componenta Corporation. Componenta complies with the 2025 Corporate Governance Code with no exceptions. The Corporate Governance Code is available at www.cgfinland.fi.

The Board of Directors of Componenta Corporation has reviewed this statement. The statement will not be updated during the financial year, but updated information related to the statement is available on the company's website at www.componenta.com/investors/ corporate-governance.

Componenta's governing bodies

Supreme authority at Componenta is exercised by the shareholders at the General Meeting of Shareholders. The company is managed by the Board of Directors and the President and CEO. At the Group level, the President and CEO is responsible for operations. The Group's Corporate Executive Team assists and supports the President and CEO in carrying out his or her duties.

General Meeting

Shareholders exercise their decision-making rights at the General Meeting, where they have the right to

Governing bodies

speak, ask questions and vote. The Annual General Meeting of Componenta must be held within six months of the end of the financial period.

The General Meeting decides on matters that come under its authority as defined in the Companies Act and the company's Articles of Association. These include approval of the financial statements, deciding on the use of the profit shown in the balance sheet, and the election of Board members, auditor and sustainability reporting assurer.

Every Componenta shareholder is entitled to attend the General Meeting. Each share carries one vote at a General Meeting.

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

An Extraordinary General Meeting must be held, if shareholders representing a minimum of 10% of the shares demand it in writing in order to process a specific matter.

As a rule, the General Meeting of Shareholders processes matters proposed by the Board of Directors to the General Meeting. A shareholder is entitled to have a matter included in the agenda of the meeting if, according to the Limited Liability Companies Act, it falls within the competence of the Annual General Meeting, provided that the shareholder requests this from the Board in writing early enough for the matter to be included in the notice of the meeting. In order to have a matter included in the agenda of a General Meeting, the shareholder must submit a request with justifications or decision proposals in writing to Componenta Corporation, Teknobulevardi 3−5, FI-01530 Vantaa, Finland. The company will publish the date by which shareholders must submit their requests on its website by the end of the financial year preceding the General Meeting of Shareholders.

Board of Directors

Composition

The Annual General Meeting elects the Board of Directors of Componenta every year. According to the Company's Articles of Association, the Board has 3–7 members. The term of office of the Board continues until the close of the following Annual

General Meeting. The Board elects a Chair and a Vice Chair from among its members. The Shareholders' Nomination Board prepares the proposals for the Annual General Meeting concerning the composition of the Board of Directors. The diversity of the future Board is taken into account when proposing and electing Board members, ensuring, for example, that both men and women are represented and that the expertise and experience of Board members correspond to the needs of the company.

The majority of the Board members must be independent of the Company. In addition, at least two of the members belonging to this majority must be independent of major shareholders in the Company. Independence is evaluated in accordance with Recommendation 10 of the Corporate Governance Code.

The Annual General Meeting decides on the remuneration paid to the Board.

Operations of the Board of Directors

The Board of Directors draws up written Rules of Procedure for itself. The main tasks and duties of the Board of Directors are to:

oversee Componenta's management and operations and make major decisions related to its strategy, capital expenditure, organisation, corporate transactions and financing;
appoint the President and CEO, approve the terms of the President and CEO's contract and decide on the dismissal of the President and CEO;
approve the appointments of the members of the Group's Corporate Executive Team and other senior management members who report directly to the President and CEO based on the President and CEO's proposal;
ensure that the Company's accounting, supervision of asset management and risk management have been appropriately arranged;
approve the key operating principles and the company's other key policies (e.g. Insider Guideline and Communications and Disclosure Policy), values and budget, and review its annual action plans;
make proposals to and convene the General Meeting;
monitor and oversee the financial statements reporting process and ensure that the reporting process produces accurate information, and approve key accounting principles;
monitor and oversee sustainability reporting processes;
review and monitor the quality and accuracy of annual reviews, half-year reports and business reviews;
monitor the financial position of the company and the sufficiency of its financing;
review the external audit and sustainability reporting assurance plans and approve the budgets for the external audit, sustainability reporting assurance and new assignments exceeding the separately specified limits;
meet with the external auditor and sustainability reporting assurer when needed and review all key reports issued by the external auditor and sustainability reporting assurer;

Board of Directors' report

Consolidated financial statements

Parent company financial statements

decide on the principles of any remuneration schemes and submit the remuneration policy and remuneration report to be processed by the General Meeting;
monitor and assess related party transactions; and
monitor the compliance of operations.

The Board is responsible for the duties of the Audit Committee.

As part of these duties, the Board

monitors and assesses the financial and sustainability reporting system;
monitors and assesses the effectiveness of internal control, internal audit and risk management systems;
monitors and evaluates contracts and other transactions made between the company and its related parties, whether they meet the requirements of belonging to normal operations and market conditions;
monitors and assesses the independence of the auditor and sustainability reporting assurer, in particular, the non-audit services offered by the auditor and sustainability reporting assurer;
monitors the company's audit and, when needed, monitors the sustainability reporting assurance;
prepares the election of the company's auditor and sustainability reporting assurer, and
processes the company's Corporate Governance Statement and Remuneration Statement.

The Board meets when it is convened by the Chair or, in their absence, by the Vice Chair. The Board forms a quorum when more than half of the members are present. Componenta's General Counsel serves as secretary to the Board meetings.

The Board of Directors evaluates its own performance annually under the leadership of the Chair.

Shareholders' Nomination Board

Componenta has a Shareholders' Nomination Board which has the task each year of preparing and presenting the proposals for members of the Board of Directors and their remuneration to be made to the following Annual General Meeting. The Nomination Board is convened annually by asking the three largest shareholders in the Company, as of 31 August, to appoint one member to the board. In addition to these, the Chair of the Company's Board of Directors serves as an expert member of the board.

The members of the Nomination Board elect one of the members to serve as Chair of the Nomination Board. The first meeting of the Nomination Board is convened by the Chair of the Company's Board of Directors and, after that, the meetings are convened by the Chair of the Nomination Board. The Nomination Board gives its proposal to the Company's Board of Directors no later than the end of the January preceding the Annual General Meeting. The Nomination Board makes sure that

the proposal is presented at the Annual General Meeting.

The Nomination Board has written rules of procedure, which state that its main tasks and duties are to

prepare and present the proposal to be made to the Annual General Meeting concerning the number of members of the Board of Directors,
prepare and present the proposal to be made to the Annual General Meeting concerning the members of the Board of Directors,
prepare and present the proposal to be made to the Annual General Meeting concerning the remuneration of the members of the Board of Directors; and
look for succession candidates for the members of the Board.

Board diversity

When preparing its proposal for members of the Board of Directors, the Nomination Board pays attention to the Board diversity policy. According to the diversity policy, the persons proposed for the Board of Directors shall possess wide-ranging expertise in the business operations of companies with international operations and the development of these. According to the diversity policy, it would be of great advantage to the work of the Board if a member of the Board had experience related to the company's business sector or of a major customer group.

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

When selecting the members of the Board, the goal is that they represent both genders and that their know-how and experience of the different areas in business operations (including production, sales, treasury and financial administration) complement each other and cover the key functions at industrial and listed companies. A further goal is to ensure continuity so that at least some of the people elected to the Board possess experience of the company's business operations over a longer period.

In its current assembly, the Board of Directors is sufficiently compliant with the company's diversity policy. The members of the Board of Directors possess wide-ranging expertise in the business operations of companies with international operations and the development of these, are experienced in the company's field of operation, and complement each other's knowledge of the company's different business areas. There are four men and one woman in the Board of Directors.

President and CEO

The Board of Directors appoints the President and CEO and decides on the remuneration and other benefits of the President and CEO. The Board of Directors will ensure that the financial benefits provided to the President and CEO on the basis of the contract of service are compliant with the company's valid remuneration policy concerning corporate bodies.

The President and CEO is responsible for managing and developing Componenta's business in accordance with the Finnish Limited Companies Act and the instructions given by the Board of Directors.

The President and CEO prepares and presents matters for consideration at Board meetings and implements the decisions of the Board of Directors. They report to the Board of Directors, inter alia, on matters including the Company's financial situation, its business environment and other major matters. The President and CEO also prepares the company's strategy to be approved by the Board of Directors and implements the approved strategy.

The President and CEO is Chair of Componenta's Corporate Executive Team.

Corporate Executive Team

Componenta's Corporate Executive Team assists the President and CEO in managing and developing Componenta. The Board of Directors decides on the appointment of members of the Corporate Executive Team and on the terms of their employment based on the President and CEO's proposal, in accordance with the "one over one" principle in use at the Group.

The members of Componenta's Corporate Executive Team are those in charge of the Group's major functions and the senior vice presidents in charge of the Group's business areas. The Corporate Executive Team convenes regularly, at least once

a month. Its key tasks include promoting the achievement of the Group's business goals and the development of business operations.

Risk management, control environment, internal control and internal audit

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

The objective of internal control and risk management related to Componenta's financial reporting is to ensure that the reporting is reliable and that all applicable laws and regulations have been complied with.

The Board of Directors supervises the Group's financial reporting process and monitors the effectiveness of internal control, internal audit and risk management systems.

Componenta compiles its financial reporting in accordance with the International Financial Reporting Standards (IFRS), the Finnish Securities Markets Act, the Finnish Accounting Act and the guidelines and statements of the Finnish Accounting

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Board, while also complying with the regulations and guidelines of the Finnish Financial Supervisory Authority and the Code of Nasdaq Helsinki Ltd.

Risk management

The Board of Directors confirms the principles and responsibilities for risk management and monitors the effectiveness of the risk management systems. The President and CEO supervises the implementation of the risk management program to ensure that it focuses on matters that are essential for local and operational activities. The Corporate Executive Team participates in identifying and evaluating risks, allocating responsibilities and monitoring the risks.

The CFO is responsible for development of Componenta's risk management.

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

All employees are responsible for identifying and evaluating the risks that are related to their work or that are otherwise under their control and for reporting on them to their supervisors.

The financial risks related to the Componenta Group's business operations are managed in accordance with the Treasury Policy approved by the Board of Directors. The Group's treasury department manages financial risks and ensures, for their own part, the availability of equity and debt finance to the Group on competitive terms. The Group's treasury department is also responsible for managing financial assets and hedging them as needed.

The Corporate Executive Team conducts the Enterprise Risk Management (ERM) process annually and monitors the major risks to operations regularly. The main risks are identified and evaluated in the ERM process and related corrective action are decided upon.

Control environment

The purpose of Componenta's internal control is to ensure that the Group operates in line with its strategy profitably and effectively, that risk management is arranged appropriately and adequately and that the financial, operational sustainability reporting is reliable. Control is based on Componenta's values, operating principles, policies and guidelines. Internal control is part of management, governance and daily operations.

Financial reporting and the monitoring of its accuracy are based on annually prepared and adopted budgets and monthly forecasts, and on performance reporting, through which the actual outcomes are compared with the budget and forecasts. The Group's financial organisation and

the management of its units are responsible for the financial reporting process and the related consistent and regularly updated guidelines.

Open and adequate communications ensure an effective and functional control environment. Information about reporting tools and the financial reporting guidelines and principles have been reviewed with all those involved in financial reporting in accordance with their responsibilities. The financial reporting guidelines and principles are available from the Group's financial organisation and the Group's intranet to the extent that the guidelines concern the Group's other functions. New reporting requirements and similar information are provided regularly within the financial organisation in accordance with each employee's responsibilities. The Group's CFO reports to the Board of Directors regularly on matters pertaining to internal control.

The internal controls of sustainability reporting consist of, among other things, checks, in which the correctness of the collected information is always assessed in at least two different stages of the reporting process, and the four-eye principle, which is used for review correctness of numerical information. Any internal control findings that materially affect the reporting process are reported to the management team and the board at least once a year.

Parent company financial statements

Internal monitoring

The profitability and efficiency of Componenta's operations and the achievement of financial objectives are monitored regularly by means of Group-wide financial reporting. The effectiveness of measures in internal control related to financial reporting is monitored by the Board of Directors, the President and CEO, the Corporate Executive Team and operative management teams.

The consistent Group-wide practices also cover reporting. Guidelines related to reporting are communicated regularly to those involved in the reporting process in accordance with their responsibilities. The Group Controller monitors the implementation of measures based on the Group-wide reporting process guidelines, together with the CFO.

The controllers are responsible for the financial reporting of operational business units in cooperation with the management of each unit. The management team for each business unit and business area analyses its own financial reports, including volumes, profits, costs, profitability and working capital, every month before the reporting meeting of the Corporate Executive Team.

The Board of Directors is responsible for the final evaluation of the Group's result.

Internal audit

The Componenta Group's internal audit is conducted in accordance with the operating principles approved by the Board of Directors. These principles are based on the Group's internal reporting and the annual action plan approved by the Board.

The Componenta Group's financial management is responsible for strengthening the internal control environments of the Group's various functions within the framework of the annual plan. Componenta uses external experts in internal auditing when needed.

Currently, however, the development of the internal control environment is seen as a more effective way to strengthen internal control. In accordance with Recommendation 26 of the Corporate Governance Codes 2020 and 2025, it is not always expedient for the company to organise internal audit as a separate function. Componenta has opted for this approach after assessing the scope of its business operations and the fact that their locations are concentrated in Finland.

Financial reporting that covers the whole Group regularly monitors how well financial targets are being met. The reports include information about the actual outcomes, as well as budgets and up-todate forecasts, for the current year and, on a rolling basis, for the next 12 months.

Insider management

Componenta complies with the rules and guidelines of Nasdaq Helsinki Ltd, such as its insider guideline, the Market Abuse Regulation ((EU) No 596/2014, "MAR") and Level 2 regulation under it, provisions of the Securities Markets Act and Criminal Code of Finland, as well as the rules and regulations of the Finnish Financial Supervisory Authority and ESMA (European Securities and Markets Authority). These are supplemented by the company's own insider guideline, aimed to establish clear operating guidelines and rules on insider management, publication of inside information, maintenance of lists of insiders and transactions by the management and their related parties. The insider guideline has been distributed to all insiders.

In accordance with the applicable legislation, the persons discharging managerial responsibilities in Componenta (the Board of Directors, President and CEO and the Corporate Executive Team) and the persons closely associated with them notify Componenta and the Financial Supervisory Authority of any trading and other transactions related to Componenta's shares or debt instruments or related derivatives or other financial instruments made on their own account no later than within three days of the transaction. The minimum threshold for the notification obligation of the tradings and transactions is EUR 20,000 per calendar year. Componenta makes public disclosures on the aforementioned trading and transactions in accordance with the applicable legislation.

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Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

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Componenta complies with the prohibition on trading (the so-called closed window) that starts 30 days before the release of a financial report or financial statement and ends with the release of the financial report or financial statement. During this time, the persons discharging managerial responsibilities in Componenta (the Board of Directors, President and CEO and the Group's Corporate Executive Team) may not, on their own account or for a third party, directly or indirectly, engage in trading and other transactions related to Componenta's shares or debt instruments or related derivatives or other financial instruments. This prohibition on trading also applies to any separately appointed persons involved in the preparation of Componenta's financial reports.

Componenta maintains a project-specific insider list of any projects and events which, if realised, are likely to have a significant effect on the value of Componenta's shares, financial instruments or the derivatives related to them, and the publication of which has been postponed in accordance with MAR. Every person with access to inside information related to the project is recorded in the projectspecific insider list. If inside information is disclosed to parties outside of Componenta (such as financial or other advisors), the person disclosing the information must ensure that the recipient of the information undertakes to keep the information confidential and complies with the insider regulations in force. Componenta requests parties external to the company to maintain the required list of insiders concerning those who have received the information.

A person included in a project-specific list of insiders may not unlawfully disclose the inside information to outsiders or other Componenta employees, engage in trading or transactions in Componenta's financial instruments, or provide others with advice on such transactions. Furthermore, a person with inside information may not amend or cancel assignments concerning Componenta's financial instruments. The full insider guideline is available on the company's intranet. The General Counsel is responsible for the company's insider affairs.

Auditors

The Annual General Meeting appoints the auditor based on the Board of Directors' proposal and decides on the auditor's fees. The auditor's term of office ends at the close of the next Annual General Meeting.

The company has one auditor that must be a firm of authorised public accountants approved by the Finnish Patent and Registration Office. In addition to the duties prescribed in current accounting regulations, the auditor reports regularly to Componenta's Board of Directors.

The principal auditor may serve as an auditor for a maximum of ten years in succession. In addition, Componenta complies with the provisions of the Accounting Act and the EU Audit Regulation on the maximum duration of the term of office of an audit firm.

The company's auditor provides its shareholders with a statutory auditor's report in connection with the annual financial statements and reports regularly to the Board of Directors on their observations.

Principles concerning related parties

In its monitoring and reporting of related party transactions, Componenta complies with the applicable laws, the requirements of the International Financial Reporting Standards and the Finnish Corporate Governance Code. The monitoring and assessment of related parties is the responsibility of Componenta's Board of Directors that has also approved the principles concerning the monitoring and assessment of related parties.

Componenta maintains a list of the persons and entities included in its related parties for the purpose of identifying any related party transactions. All persons and entities included in related parties are obliged to announce or otherwise inform the company of any conflicts of interest on their own initiative.

The Board of Directors of Componenta or its general meeting, when required, will decide, observing the disqualification provisions, on related party transactions that are not part of the company's normal operations or which are concluded in deviation from ordinary commercial

Board of Directors' report

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

terms and conditions. Componenta may conclude with its related parties transactions which are associated with the company's contracts concluded according to standard terms and conditions, or are associated with contracts offered to customers and personnel within the constraints of normal pricing or which are below the limit in euros set in the approved principles. Componenta's Board of Directors monitors and assesses how the contracts and other legal transactions concluded between the company and its related parties fulfil the criteria of being part of normal operations and having market terms and conditions.

The information about related party transactions is obtained half-yearly from Componenta's accounts in conjunction with regular financial reporting. The remuneration and fringe benefits of persons included in related parties are monitored separately for financial statements reporting. Componenta reports on related party transactions annually in its financial statements. Furthermore, Componenta publicises related party transactions in compliance with the Securities Markets Act, the Stock Exchange rules and the Market Abuse Regulation.

Communication

Information about Componenta and its governance is published on the Group's website. All releases and reports published by Componenta are available on the Group's website immediately after they have been published.

The Corporate Governance Statement and the Remuneration Report are available at www. componenta.com.

Other matters

Whistleblowing

Componenta has guidelines in place for processing reports ("whistleblowing") on any detected or suspected insider trading or market manipulation or unlawful or dishonest conduct concerning accounting, internal control, audit or the company's other operations by its employees and other stakeholders.

The company's Board of Directors has designated the General Counsel to receive and process any reports submitted through the whistleblowing channel.

Each Componenta employee is liable to report any breaches or non-compliance with the law, the company's Code of Conduct or other instructions issued by Componenta they observe. Componenta's employees may report any violations of the company's guidelines or other instructions to their supervisors. Each supervisor at Componenta has an obligation to provide advice on how to respond to misconduct. The company's General Counsel may also be contacted in such cases.

Any suspected breaches of Componenta's Code of Conduct, legislation and regulations may also be reported via the anonyme Whistleblowing channel https://report.whistleb.com/en/componenta which link is on Componenta's website, or by mail to Componenta Corporation, Legal Affairs, Teknobulevardi 3−5, FI-01530 Vantaa, Finland. In addition to Componenta's employees, these channels are available for everyone outside the company to use. Regardless of the means through which the notification was received, all bona fide claims of any breaches or noncompliance with Componenta's Code of Conduct or other instructions issued by the company will be investigated fairly and thoroughly by using appropriate internal and/or external expertise.

Componenta ensures that no employee who reports breaches of legislation, the company's Code of Conduct or other guidelines issued by Componenta will be subjected to any harmful consequences due to reporting them.

Governance in 2024

Annual General Meeting

The 2024 Annual General Meeting (AGM) was held on 10 April 2024. Of all the shares and votes in the company 31,40 % were represented at the AGM. The minutes of the AGM are available on the company's website.

Parent company financial statements

The AGM was held in lecture hall Akropolis 2 in Teknopolis Aviapolis, Teknobulevardi 3−5, FI-01530 Vantaa, Finland.

Board of Directors

The company's Board of Directors included four members during 1 January 2024–10 April 2024 as follows: Harri Suutari (Chair), Anne Koutonen (Vice Chair), Tomas Hedenborg and Petteri Walldén.

The Annual General Meeting elected on 10 April 2024 the following five members to the Board of Directors: Tomas Hedenborg, Anne Koutonen, Harri Suutari, Petteri Walldén and Lars Wrebo.

At its inaugural meeting after the Annual General Meeting, the Board of Directors elected Harri Suutari as Chair of the Board and Anne Koutonen as Vice Chair of the Board.

At the end of 2024, 20% of the Board members were women and 80% were men.

Componenta's Board of Directors assessed the independence of its members once in 2024. All members of the company's Board of Directors, Harri Suutari, Tomas Hedenborg, Anne Koutonen, Petteri Walldén and Lars Wrebo are independent of the company and its major shareholders.

The Board of Directors did not establish any committees from among its members in the 2024 financial year.

Composition of the Board on 31 December 2024

	Year of birth	Education and training	Primary role	Board member since	Share ownership 31 Dec, 2024
Harri Suutari Chair	1959	B.Sc. (Eng.)	Board professional	2019 (2012–2015)	182,889 shares (indirect ownership)
Anne Koutonen Vice Chair	1962	M.Sc. (Econ.)	Board professional	2017	–
Tomas Hedenborg	1959	M.Sc. (Tech.)	Board professional	2021	5,100 shares (indirect ownership)
Petteri Walldén	1948	M.Sc. (Tech.)	Board professional	2017	–
Lars Wrebo	1962	M.Sc (Mechani cal Engineering)	Board professional	2024	4,000 shares

Additional information about the Board members is available on pages 147-148.

Board meetings

The Board of Directors met 14 times in 2024. The Board members' participation rate was 100%.

Board member	Participation in meetings	Participati on rate, %
Harri Suutari Chair	14/14	100%
Anne Koutonen Vice Chair	14/14	100%
Tomas Hedenborg	14/14	100%
Petteri Walldén	14/14	100%
Lars Wrebo	8/8	100%

The Board of Directors, under the supervision of the Chair, assessed its operations in September 2024.

Shareholders' Nomination Board in 2024

From 1 January to 31 December 2024, the Shareholders' Nomination Board consisted of the following members: Kyösti Kakkonen, Commercial Councellor, CEO, representing Joensuun Kauppa ja Kone Oy; Harri Suutari, Chair of Componenta Corporation's Board of Directors, representing Etra Capital Oy and serving as an expert member; and Erkka Kohonen, Senior Portfolio Manager, representing Varma Mutual Pension Insurance Company. Harri Suutari served as Chair of the Shareholders' Nomination Board.

The Nomination Board met four (4) times in 2024, and the meetings had an attendance rate of 100%.

President and CEO and the Group's Corporate Executive Team

Members of Componenta's Corporate Executive Team on 31 December 2024
	Role	Year of birth	Education and training	Member of the Corporate Executive Team since	Share owner ship on 31 December 2024	Options* 31 December 2024
Sami Sivuranta	President and CEO	1975	M.Sc. (Tech.)	2019	3,897	2018C: 7,540 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs
Marko Karppinen	CFO	1971	M.Sc. (Econ.)	2016	5,562	2018C: 7,540 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs
Pasi Mäkinen	COO	1969	B.Sc. (Eng.)	2015	5,620	2018C: 7,540 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs
Hanna Seppänen	General Counsel	1974	LL.M.	2021	–	2018C: 7,542 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs

Related party transactions

In 2024, the company did not have any related party transactions deviating from ordinary business operations or ordinary commercial terms and conditions.

Auditor and the auditor's fees

Componenta's auditor in 2024 was PricewaterhouseCoopers Oy, Authorised Public Accountants, with Ylva Eriksson, APA, as the principal auditor. In accordance with the resolution of the Annual General Meeting on 10 April 2024, the auditor's fees were paid based on their invoice. In 2024, the fees paid to the auditors of the Componenta Group's companies based on their performance of services were around EUR 194,000 (225,000), broken down as follows:

Auditing fees, EUR	2024	2023
Audits	184,000	195,000
Services not related to audits	10,000	30,000

* Each option right 2018C entitles its holder to subscribe for two new shares in the company or two treasury shares. Each option right 2023A and 2023B entitles to subscribe for one new or existing share of the company.

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

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Board of Directors on 31 December 2024

Harri Suutari

Born 1959, B.Sc. (Eng.)

Chair of the Board of Directors 2012–2015 and since 2019
Board member 2012–2015 and since 2019
Independent of the company and its major shareholders

Key professional experience

Componenta Corporation, President and CEO, 2015–2019 Board professional, 2012–2015 PKC Group Plc, President and CEO, 2002–2005 and 2008–2012 Ponsse Plc, President and CEO, 1994–2000 Kajaani Automatiikka Oy, President and CEO, 1984–1996

Key positions of trust

Talgraf Oy, Chair of the Board Konesilta Oy, Chair of the Board Proventia Group Corporation, Chair of the Board PunaMusta Media Oyj, Chair of the Board Treenimaailma SixQ Oy, Chair of the Board Oy M-Filter Ab, Board member Prometec Tools Ltd, Board member

Componenta's shares held

Total 182,889 pcs (indirect ownership)

Anne Koutonen

Born 1962, M.Sc. (Econ.)

Board member since 2017, Vice Chair since 2019
Independent of the company and its major shareholders

Key professional experience

Nokian Tyres Plc, Vice President, Finance & IR, 2006–2018 Nokian Tyres Plc, Treasurer, 2005–2006 Nokian Tyres Plc, Manager, Treasury, 1997–2005 Oy Kyro Ab, Financial Analyst, Group, 1995–1997 Suomen Säästöpankki – SSP Oy, Financing Bank, Manager, Domestic Money Market, 1992–1994 SSP Tampere Region, Dealer, 1989–1992

Key positions of trust

Tammer Brands Oy, Chair of the Board HKScan Corporation, Board member Image Wear Oy, Board member Kemppi Oy, Board member Kojamo Plc, Board member Merus Power Plc, Board member Modulight Oyj, Board member

Componenta shares

Tomas Hedenborg

Born 1959, M.Sc. (Tech.) – Board member since 2021

– Independent of the company and its major shareholders

Key professional experience

Fabel Advisory Oy Ab, CEO, since 2019 Orgalim, President, 2015–2019 Fastems Oy Ab, Group CEO, 2013–2019 DIMECC Ltd, Chair of the Board, 2013–2017 SLP Oy, Chair of the Board, 2012–2016 Finn-Power Corporation, President and CEO, 2005–2011 HBPO GmbH, President and CEO, 2001–2005 Bertrand Faure Sitztechnik GmbH, Customer Unit Director, 1998–2001 Bertrand Faure Sitztechnik GmbH, Vice President, R&D, Automotive Seating, 1994–1998 Valeo GmbH, R&D Manager, 1990–1994

Key positions of trust

Temet Group Oy, Chair of the Board Kemppi Oy, Board member Meconet Oy, Board member Ursviken Group Oy, Board member T-Drill Oy, Board member

Componenta shares

Total 5,100 pcs (indirect ownership)

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Petteri Walldén Born 1948, M.Sc. (Tech.) – Board member since 2017, Chair 2017–2019 – Independent of the company and its major shareholders

Key professional experience

Alteams Oy, President and CEO, 2007–2010 Onninen Oy, President and CEO, 2001–2005 Ensto Ltd, President and CEO, 1996–2001 Nokia Kaapeli Oy, President and CEO, 1990–1996 Sako Ltd, President and CEO, 1987–1990

Key positions of trust

Jaakko Pohjola Oy, Chair of the Board Alteams Oy, Board member Blood Disease Research Foundation, Board member

Componenta shares

Lars Wrebo

Born 1962, M.Sc., Mechanical Engineering

– Board member since 2024

– Independent of the company and significant shareholders

Key professional experience

Volvo Cars Executive Board Member, SVP Purchasing and Manufacturing, 2012–2016 MAN Truck & Bus, Executive Vice President, Production and Logistics, 2006–2012 Scania CV AB, SVP Chassis and Cabs, 2001–2006 Scania Production Angers, CEO, 1996–2001 Saab-Scania AB, Scania CV AB, Trainee program; several management positions within manufacturing and logistics, 1986–1996

Key positions of trust

Thor Ahlgren AB, Board Member SMPP Holding AB, Board Member AQ Group, Board Member

Componenta shares

Total 4,000 pcs

Board of Directors' report

Sustainability statement

Consolidated financial statements

Notes to the consolidated financial statements

Parent company financial statements

Corporate Executive Team on 31 December 2024

Sami Sivuranta Born 1975, M.Sc. (Tech.) – President and CEO since 2020 – Member of the Corporate Executive Team since 2019, Chair since 2020

Key professional experience

Componenta Corporation, Director, Business Development, 2019–2020 HKScan Corporation, Executive Vice President, 2018–2019 Consolis Parma Ltd, Director, Business Development, 2016–2017 Componenta Corporation, Senior Vice President, Development, 2016 Componenta BV, Vice President, Heerlen Foundry, 2015–2016 Componenta Corporation, Vice President, Internal Sourcing, 2012–2014 Componenta Corporation, Sales Director, Machine Building Nordic, 2010–2012 Componenta Corporation, Manager, Internal Sourcing, 2009–2010 Componenta Karkkila Oy, Production Manager, 2006–2009 Componenta Karkkila Oy, Manager, Quality and the Environment, 2004–2006

Key positions of trust LICO Oy, Board member

Componenta shares 3,897 pcs

Options*

2018C: 7,540 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs

Marko Karppinen

Born 1971, M.Sc. (Econ.)

– CFO since 2016

– Member of the Corporate Executive Team since 2016

Key professional experience

Componenta Corporation, Director, Development, 2016 Componenta Turkey, Vice President, Business Development, 2016 PKC Group Plc, Director, Internal Audit, 2013– 2016 PKC Group Plc, CFO (interim), South America, 2013–2014 PKC Group USA Inc., Senior Vice President, Business Development, 2011–2013 Proventia Group Oy, CFO, 2007–2011 PKC Group Plc, CFO, 2003–2007 Ponsse Plc, CFO and other financial positions, 1994–2001

Componenta shares

5,562 pcs

Options*

2018C: 7,540 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs

Pasi Mäkinen

Born 1969, B.Sc. (Eng.)

– COO since 2020

– Member of the Corporate Executive Team since 2015

Key professional experience

Componenta Corporation, Director, Material Services, 2019–2020 Componenta Corporation, COO, 2017–2019 Componenta Corporation, Senior Vice President, Iron Business, Turkey, 2016–2017 Componenta Corporation, Business Unit Director, Orhangazi Foundry, Turkey, 2015– 2016

Valmet Technologies Inc., Vice President, Foundry Operations, 2013–2015 Metso Foundries Jyväskylä Oy, President, 2008– 2013

Valmet Corporation / Metso Paper Oy / Metso Foundries Jyväskylä Oy, Production Manager, 1999–2008

Key positions of trust

Sacotec Components Oy, Board members

Componenta's shares held 5,620 pcs

Options* 2018C: 7,540 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs

Hanna Seppänen

Born 1974

LL.M. (University of Turku), LL.M. (University of Stockholm)

– General Counsel since 2021

– Member of the Corporate Executive Team since 2021

Key professional experience

Siili Solutions Plc, Director, Legal, 2018–2021 Terveystalo Plc, General Counsel, 2013–2018 Tallink Silja Oy, Legal Counsel, 2010–2013 Bird & Bird Attorneys Ltd, Associate, 2008–2010 Orion Corporation, Legal Counsel, 2002–2008 University of Turku, Legal Counsel, 2001–2002

Key positions of trust

Emmy Clothing Company Oy, Board member

Componenta shares

Options*

2018C: 7,542 pcs 2023A: 16,668 pcs 2023B: 16,668 pcs

Componenta Corporation Teknobulevardi 3−5 01530 Vantaa, Finland www.componenta.com

AI Terminal

Componenta Oyj

3307_10-k_2025-03-28_7e394459-936a-4ed8-a41d-fb1138fa8eea.pdf

Componenta in brief

Breakdown of net sales, %

Group financial development

Cash flow from operating activities, EUR thousand Return on investment, %

EBITDA, EUR thousand*

50 Equity ratio, %

* The EBITDA for the financial year include a non-recurring income of EUR 2.9 million recognised in non-operating activities during the last quarter of 2024 from the purchase of the business operations of the Kalajoki plant and the Sepänkylä machining and service centre.

Summary of key events in 2024

Key figures

Componenta's value creation

President and CEO's review

Componenta grew through acquisitions and the market picked up towards the end of the year

Market uncertainty prevailed throughout 2024

The first year of the 3-year strategy period

The company's offering meets customers' needs even better than before

Towards growth

Board of Directors' report 2024

Business model

Summary of key events in 2024

Net sales

Net sales by market area

Order book

Agreement with the Defence Forces

The acquisition of the Kalajoki plant and the Sepänkylä machining and service centre

Balance sheet, financing and cash flow

Personnel

Capital expenditure

Research and development activities

Share capital and shares

Shareholders on 31 Dec 2024

Breakdown of share ownership on 31 Dec 2024

Shareholders by sector on 31 Dec 2024 %

Flagging notifications

Resolutions of the Annual General Meeting

Option rights

Board of Directors and management

Risks and businessrelated uncertainties

Alternative performance measure

Profit guidance for 2025

Dividend proposal

Annual General Meeting

Sustainability statement 2024

General information

General basis for preparation of the sustainability statement

Governance

The role of the administrative, management and supervisory bodies

Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies

Integration of sustainability-related performance in incentive schemes

Risk management and internal controls over sustainability reporting

Strategy

Strategy, business model and value chain

Interests and views of stakeholders

Impact, risk and opportunity management

Description of the process to identify and assess material impacts, risks and opportunities

Method of implementation of the double materiality assessment

Impact assessment

Assessment of risks and opportunities

Materiality thresholds

Consultation with stakeholders

Coverage and assumptions of the double materiality assessment

Material sustainability topics identified through the double materiality assessment and topics below the materiality threshold

Material impacts, risks and opportunities and their interaction with strategy and business model

Pollution (ESRS E2)

Resource use and circular economy (ESRS E5)

Own workforce (ESRS S1)

Business conduct (ESRS G1)

Entity-specific topics

List of Disclosure Requirements complied with

List of required datapoints incorporated by reference to information outside of the sustainability statement

Statement on due diligence

List of Datapoints derived from other EU legislation

Environmental information

EU Taxonomy

Taxonomy-eligible and taxonomy-aligned turnover

Taxonomy-eligible and taxonomy-aligned capital expenditure and operating expenditure

Nuclear and fossil gas related activities

Climate Change