Componenta Oyj — Earnings Release 2019

Nov 7, 2019

Disclosure 376449

Componenta - Other information disclosed according to the rules of the Exchange

Componenta presents its previously published consolidated income statements and financial key figures adjusted with the impact of Componenta Främmestad AB’s bankruptcy

Componenta Corporation, Stock Exchange Release, on 7 November 2019 at 15.25 Componenta has restated its consolidated income statements for the year 2018 and six months period ended 30 June 2019 due to bankruptcy of Componenta Främmestad AB. Componenta’s Sweden-based subsidiary Componenta Främmestad AB filed an application for bankruptcy with the local district court on 25 September 2019. Since the loss of control Componenta has classified and reports Componenta Främmestad AB as discontinued operations. Componenta applies the requirements of IFRS 5 Non‑current Assets Held for Sale and Discontinued Operations in classifying, presenting and accounting for the loss of control due the bankruptcy of Componenta Främmestad AB. Componenta has classified and reports Componenta Främmestad AB as discontinued operations in the business review 1 January – 30 September 2019 as the loss of control took place 25 September 2019. Result of discontinued operations is reported separately from continuing operations’ income and expenses in the consolidated income statement, and prior periods have been adjusted accordingly. Intra-group income and expenses between continuing and discontinued operations are eliminated in full. Income and expenses related to discontinued operations are not considered to continue after the bankruptcy. The statement of financial position is not adjusted for prior periods. The following tables show the unaudited adjusted consolidated income statements, main cash flows of discontinued operations as well as certain key ratios for all four quarters of 2018 separately and for full year 2018, as well as for the first and second quarter of 2019 and six months ended 30 June 2019. Consolidated income statement MEUR Jan 1-Jun Jan 1-Dec Jul 1-Dec Jan 1-Jun 30, 2019 31, 2018 31, 2018 30, 2018 Continued operations: Net sales 22.3 39.3 18.0 21.3 Other operating income 0.1 1.9 0.7 1.0 Operating expenses -19.8 -38.0 -17.4 -20.4 EBITDA 2.6 3,2 1.3 1.9 % of net sales 11.6 % 5.9 % 7.2 % 8.9 % Depreciations, -0.9 -2.2 -1.2 -1.0 amortisations and write-downs Operating result 1.7 1.0 0.0 0.9 % of net sales 7.6 % 0.2 % 0.3 % 4.3 % Financial income and -0.0 -0.0 -0.0 -0.0 expenses Result after financial 1.7 0.9 0.0 0.9 items % of net sales 7.6 % 2.3 % 0.2 % 4.2 % Income taxes 0.0 0.0 0.0 0.0 Net result of 1.7 0.9 0.0 0.9 continued operations Discontinued operations: Net result of -1.0 0.1 -0.4 0.5 discontinued operations Net result 0.7 1.0 -0.4 1.4 Allocation of net profit for the period To equity holders of 0.7 1.0 -0.4 1.4 the parent To non-controlling 0.0 0.0 0.0 0.0 interest Total 0.7 1.0 -0.4 1.4 Earnings per share calculated on the profit attributable to equity holders of the parent - Basic earnings per 0.00 0.01 0.00 0.01 share, EUR - Basic earnings per 0.01 0.01 0.00 0.01 share, continued operations, EUR - Basic earnings per -0.01 -0.00 0.00 0.00 share, discontinued operations, EUR - Diluted earnings per 0.00 0.01 0.00 0.01 share, EUR Consolidated statement of comprehensive income MEUR Jan 1-Jun Jan 1-Dec Jul 1-Dec Jan 1-Jun 30, 2019 31, 2018 31, 2018 30, 2018 Net result 0.7 1.0 -0.4 1.4 Continued operations: Other items - - - - Total items that may be 0.0 0.0 0.0 0.0 reclassified to profit or loss subsequently Income tax on other comprehensive - - - 0.0 income Other comprehensive income of 0.0 0.0 0.0 0.0 continued operations, net of tax Discontinued operations: Translation differences -0.1 -0.1 0.9 -1.0 Other items - - - - Other comprehensive income of -0.1 -0.1 0.9 -1.0 discontinued operations, net of tax Total comprehensive income 0.6 0.9 0.5 0.5 Allocation of total comprehensive income To equity holders of the parent 0.6 0.9 0.5 0.5 To non-controlling interest - - - 0.0 Total 0.6 0.9 0.5 0.5 Net sales by business area, continued operations MEUR Jan 1-Jun 30, 2019 Jan 1-Jun 30, 2018 Jan 1-Dec 31, 2018 Heavy trucks 1.8 1.1 2.1 Other 20.5 20.2 37.2 Total 22.3 21.3 39.3 Net sales by market area, continued operations MEUR Jan 1-Jun 30, 2019 Jan 1-Jun 30, 2018 Jan 1-Dec 31, 2018 Sweden 4.5 4.3 7.8 Finland 15.6 14.6 26.8 Benelux 0.1 0.0 0.1 countries Germany 1.1 1.3 2.5 Other 1.0 1.1 2.0 European countries Other 0.1 0.0 0.0 countries Continued 22.3 21.3 39.3 operations total Quarterly net sales development by market area, continued operations MEUR Q2/2019 Q1/2019 Q4/2018 Q3/2018 Q2/2018 Q1/2018 Sweden 2.3 2.3 2.0 1.5 2.3 2.0 Finland 7.9 7.7 5.8 6.5 7.4 7.2 Benelux countries 0.0 0.0 0.0 0.0 0.0 0.0 Germany 0.6 0.4 0.7 0.6 0.8 0.5 Other European countries 0.4 0.5 0.5 0.5 0.5 0.6 Other countries 0.1 0.0 0.0 0.0 0.0 0.0 Continued operations total 11.3 11.0 8.9 9.1 11.0 10.3 Group continued operations development MEUR Jan 1-Jun Jan 1-Jun 30, 2018 Jan 1-Dec 31, 2018 30, 2019 Net sales 22.3 21.3 39.3 Operating result 1.7 0.9 1.0 Net financial items 0.0 0.0 0.0 Result after 1.7 0.9 0.9 financial items Net result 1.7 0.9 0.9 Group continued operations development by quarter MEUR Q2/2019 Q1/2019 Q4/2018 Q3/2018 Q2/2018 Q1/2018 Net sales 11.3 11.0 8.9 9.1 11.0 10.3 Operating 0.6 1.1 0.1 -0.1 0.5 0.4 result Net financial 0.0 0.0 0.0 0.0 0.0 0.0 items Result after 0.6 1.1 0.1 -0.1 0.5 0.4 financial items Order book at period end MEUR Q2/2019 Q1/2019 Q4/2018 Q3/2018 Q2/2018 Q1/2018 Continued operations total 4.3 6.2 5.8 6.0 4.4 5.6 Discontinued operations MEUR Jan 1 - Jan 1 - Jun 30, 2018 Jan 1 - Dec 31, 2019 Jun 30, 2019 Net sales 36.8 44.8 81.4 Expenses -37.8 -44.1 -81.1 Result after -1.0 0.7 0.7 financial items Income taxes 0.0 -0.2 -0.2 Net result of -1.0 0.5 0.1 discontinued operations Cash flow of discontinued operations MEUR Jan 1-Jun Jan 1-Jun Jan 1-Dec 31, 2018 30, 2019 30, 2018 Net cash flow from operating 1.3 2.4 2.2 activities Net cash flow from investing -0.5 -0.3 -0.8 activities Net cash flow from financing 0.0 -3.0 -2.7 activities Change in liquid assets 0.8 -0.9 -1.3 Cash and cash equivalents at 1.1 2.4 2.4 the beginning of the period Effects of exchange rate 0.0 0.0 0.0 changes on cash Cash and cash equivalents at 1.9 1.5 1.1 the period end Key financial ratios Continued Jan 1-Jun Jan 1-Mar Jan 1-Dec Jan 1-Sep Jan 1-Jun operations 30, 2019* 31, 2019* 31, 2018 30, 2018 30, 2018 Net sales, MEUR 22.3 11.0 39.3 30.4 21.3 EBITDA, MEUR 2.6 1.6 3.2 2.3 1.9 Operating result, 1.7 1.1 1.0 0.8 0.9 MEUR Operating result, 7.6 10.3 2.4 2.8 4.3 % Result after 1.7 1.1 0.9 0.8 0.9 financial items, MEUR Net result, MEUR 1.7 1.1 0.9 0.8 0.9 Basic earnings per 0.01 0.01 0.01 0.00 0.01 share, EUR Cash flow from 6.0 2.8 1.3 1.4 1.3 operations, MEUR Equity ratio , % 39.1 37.5 39.3 37.2 35.8 Invested capital 21.8 21.9 21.2 20.6 20.4 at period end, MEUR Return on 15.8 21.1 4.4 5.3 8.8 investment , % Return on equity, 17.4 23.3 5.0 5.9 9.7 % Net interest -8.3 -6.1 -3.4 -4.7 -3.9 -bearing debt, MEUR Net gearing, % -41.9 -30.9 -17.7 -24.6 -20.8 Order book, MEUR 4.3 6.2 5.8 6.0 4.4 Investments in non 0.5 0.2 n/a n/a n/a -current assets incl. lease liabilities, MEUR Investments in non 0.5 0.2 1.1 0.9 0.5 -current assets excl. lease liabilities, MEUR Investments in non 2.2 1.7 2.8 3.0 2.6 -current assets incl. lease liabilities, % of net sales Average number of 404 411 414 414 409 personnel during the period Average number of 455 453 473 481 478 personnel during the period, incl. leased personnel Number of 388 410 412 428 417 personnel at period end Number of 423 458 439 485 491 personnel at period end, incl. leased personnel Share of export 30.1 30.2 31.8 30.7 31.4 and foreign activities in net sales, % Contingent 3.4 3.4 3.8 3.8 3.8 liabilities, MEUR Per Share Data Jan 1-Jun Jan 1-Mar Jan 1-Dec Jan 1-Sep Jan 1-Jun 30, 2019 31, 2019 31, 2018 30, 2018 30, 2018 Number of shares 177 269 177 269 177 269 177 269 176 137 at period end, thousands Basic earnings per 0.01 0.01 0.01 0.00 0.01 share, EUR Diluted earnings 0.01 0.01 0.01 0.00 0.01 per share, EUR Cash flow per 0.03 0.02 0.01 0.01 0.01 share, EUR * As of 1 January 2019, the company adopted the new IFRS 16 “Leases” standard. As a result, in applying the new standard the lease agreements of the lessee are recognized on the balance sheet. Componenta has used the modified retrospective method so consequently the comparative financials have not been restated. The investments in 2019 include right of use assets recognized in the balance sheet and net debt and net gearing include lease liabilities recognized in the balance sheet. Calculation of key financial figures Key figure Määritelmä Return on equity-% = Profit (Group) after financial items – Income taxes (ROE) x 100 Shareholders' equity + non-controlling interest (average of the accounting period) Invested capital = Shareholders' equity + interest bearing liabilities (average of the accounting period) Return on = Profit after financial items + Interest and other investment-% (ROI) financial expenses x 100 Shareholders' equity + interest bearing liabilities (average of the accounting period) Equity ratio, % = Shareholders' equity + non-controlling interest x 100 Balance sheet total - advances received Net interest = Interest bearing liabilities - cash and bank accounts -bearing debt Net gearing, % = Net interest bearing liabilities x 100 Shareholder’s equity + non-controlling interest Investments in non = Additions to non-current assets -current assets EBITDA = Operating profit + Depreciation, amortization and write -downs +/- Share of the associated companies' result Earnings per = Profit after financial items – income taxes +/- non share, EUR (EPS) -controlling interest – deferred and paid interest on hybrid loan Average number of shares during the financial period Earnings per share = As above, the number of shares has been increased with with dilution, EUR the possible warrants outstanding. When calculating the dilution effect of warrants, the number of shares has been adjusted with the number of own shares which the company could have acquired, if it would have used the funds generated from the warrants to buy back of own shares at market price (= average trading price). After tax interest expense of the possible convertible loan has been added to the profit of the period. Number of shares that can be subscribed by the loan has been added to the number of total shares. Cash flow per = Net cash flow from operating activities share, EUR (CEPS) Average number of shares during the financial period COMPONENTA CORPORATION Marko Penttinen President and CEO For further information, please contact: Marko Penttinen, President and CEO, tel. +358 10 403 2200 Marko Karppinen, CFO, tel. +358 10 403 2101 Componenta is an international technology company. Componenta specialises in supplying cast and machined components for its global customers, who are manufacturers of vehicles, machines and equipment. The Company’s share is listed on Nasdaq Helsinki.