Componenta Oyj — Earnings Release 2020

Feb 26, 2021

Componenta’s Financial Statements Release 1.1. - 31.12.2020: Net sales increased and EBITDA clearly improved

Componenta’s Financial Statements Release 1.1. - 31.12.2020: Net sales increased and EBITDA clearly improved

Componenta Corporation Stock Exchange Release 26.2.2021 at 8.00 am

The information presented in this Financial Statement Release concerns the
development of Componenta Group’s continued operations in January – December
2020 and in the corresponding period in 2019. unless otherwise stated. The
figures in this release have not been audited.

January - December 2020

· Net sales increased from the previous year to EUR 70.0 million (EUR 50.7
million).
· EBITDA improved and was EUR 3.7 million (EUR 1.6 million).
· Operating result was EUR -2.0 million (EUR -1.7 million).
· Cash flow from operating activities was 6.4 Me (4.1 Me).

October - December 2020

· Net sales decreased to EUR 17.5 million (EUR 18.4 million).
· EBITDA increased to EUR 1.9 million (EUR -0.3 million).
· Operating result was EUR 0.4 million (-1.8 million).
· Cash flow from operating activities was -0.6 Me (-0.6 Me).

Dividend proposal

On 31 December 2020. the parent company’s distributable assets amounted to EUR
32.4 million (EUR 22.8 million). Under Chapter 9. Section 58 of the
Restructuring of Enterprises Act. Componenta cannot distribute a dividend
between the approval and the conclusion of the restructuring programme.

Componenta’s guidance for 2021

Componenta expects the net sales of continued operations in 2021 to be EUR 70–80
million. EBITDA is expected to improve from the previous year. In 2020. net
sales from continued operations were EUR 70 million and EBITDA EUR 3.7 million.

The potential increase in prices for raw materials. the general economic and
competitive situation, and the development of customers’ sales volumes may
affect the business outlook. Due to the Covid-19 pandemic future sales and
profitability developments are associated with uncertainties and poor
visibility.

CEO Sami Sivuranta comments on the review period:

”Even the last quarter of the year was overshadowed by the uncertainty in the
market caused by the Covid-19 pandemic. This was reflected in lower sales
volumes compared to the previous year. However. the group’s total net sales
increased from the comparison year due to the merger of Componenta Manufacturing
Oy and Componenta Group on 30 August 2019. However. positive signs were already
visible in the market towards the end of the year. and if the international
pandemic measures succeed as planned the economic recovery is expected to begin
gradually and also have a positive effect on Componenta’s sales volumes.

Our profitability clearly improved due to active adjustment of operations and
other planned measures. and our employees have shown a strong commitment to
maintaining and improving our financial performance. The result for the last
quarter was also improved by non-recurring items of EUR 0.6 million related to
the sale of unnecessary fixed assets and adjustments to the accounting
principles for inventories.

Componenta’s goal is to be the primary comprehensive service provider to its
customers. Despite the disruptions in international supply chains caused by the
pandemic. we were able to take successful measures to ensure the availability of
raw materials for our own production and maintain good delivery capacity
throughout the difficult year. In addition. during the past year. we also
strengthened our sales through recruitment and job description changes and
clarified the responsibility of our business units and the ownership of sales.
With these measures. we have succeeded in gaining significant new sales in the
past year. which contributes to meeting the group’s long-term growth and
profitability targets. The new sales will start to affect the group’s net sales
and profitability as the related deliveries start and will in future contribute
to compensating for the negative effects of the COVID-19 pandemic.

In addition to short-term measures. we have continued the planning and
implementation of long-term measures in line with our strategy. In addition. our
goal is to continue to invest in service capability and close customer
relationships. while operating responsibly. expanding our offering and ensuring
the skills of our personnel.

The health and safety of our employees was ensured by measures that were started
at the beginning of the pandemic and were refined and adjusted to reflect the
situation during the year as necessary. In addition to the active adjustment of
personnel costs. among measures taken to manage the financial impact of
the pandemic in 2020 were partial restriction of planned investments.
minimisation of travel and the use of external expert services.

Our active efforts to ensure and maintain our liquidity were successful during
the year. Our liquidity was good during the financial year and has remained good
since the end of the review period. At the end of December 2020. the group had
unused and binding credit commitments of EUR 4.0 million.

We announced changes in the company’s largest shareholders on 5 October 2020.
when a group of investors led by Joensuun Kauppa ja Kone Oy and a group of
investors led by Etra Capital Oy bought approximately 15% of the company’s
shares and voting rights from funds managed by CapMan and Leverator Oy.

The successful rights issue carried out after the change of ownership brought
Componenta the gross assets of EUR 9.5 million that were sought. We announced on
25 February 2021 about the premature repayment of the restructuring debts. The
payments are assumed to occur in March 2021.

In this context. I would also like to thank the important contribution of our
own personnel in a difficult year in 2020 and. in addition. all of Componenta’s
shareholders for the successful rights issue. We will continue our determined
work to strengthen the company’s position in the market and to improve
profitability as part of our growth strategy. At the same time. we want to
invest in close partnerships with our customers and profile ourselves as a
primary. comprehensive supplier of an even wider offering.”

Key figures

                                            2020    2019  Change-%

Net sales. continued operations. TEUR 70,040 50,737 38.0
EBITDA. continued operations. TEUR 3,750 1,590 135.8
Operating result. continued operations. TEUR -2,034 -1,663 -22.3
Operating result. continued operations. % -2.9 -3.3 -11.4
Result after financial items. continued -3,489 -2,051 -70.1
operations. TEUR
Net result. continued operations. TEUR -3,175 -2,063 -53.9
Net result. including discontinued -949 14,570 -106.5
operations. TEUR
Basic earnings per share*. EUR -0.20 3.01 -106.5
Diluted earnings per share*. EUR -0.19 2.96 -106.5
Cash flow from operating activities. 6,355 4,050 56.9
continued operations. TEUR
Interest-bearing net debt**. TEUR -2,584 8,721 -129.6
Net gearing. % -10.8 54.9 -119.7
Return on equity. % -5.8 83.0 -107.0
Return on investment. % 0.7 3.2 -79.3
Equity ratio. % 37.3 29.4 27.0
Gross investments incl. lease liabilities. 5,134 2,849 80.2
continued operations. TEUR
Group’s restructuring debt 10,694 12,268 -12.8
Number of personnel at the end of the 574 617 -7.0
period. incl. leased workers. continued
operations
Average number of personnel during the 589 508 15.9
period. incl. leased workers. continued
operations
Order book at the end of the review period. 9,536 9,001 5.9
continued operations. TEUR

*) The comparable figures for 2019 have been adjusted due to reverse share
split.

**) Only interest-bearing restructuring debt included.

Componenta’s Financial Statements Release 2020 in pdf format is in the appendix
to this release. It is also available on the company’s website at
www.componenta.com.

Webcast

President and CEO Sami Sivuranta will present Financial Statements Release for
investors. analysts and media in a webcast on 26 February 2021 at 10 am EET. The
webcast will be in Finnish. You can follow the Finnish webcast via the company
pages at www.componenta.com or via this link:
https://componenta.videosync.fi/tilinpaatostiedote
-2020 (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcomponen
ta.videosync.fi%2Ftilinpaatostiedote
-2020&data=04%7C01%7C%7C1fe27a6b0db74523e68308d8d9785cca%7C49cc2cb0f7204d2782c66a
24220c3044%7C0%7C1%7C637498458282631600%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwM
DAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0&sdata=s%2Bc6vdDgcaGwumVpG%2
FpEZso1mUQM8LpHy65XaA8BVHU%3D&reserved=0).

COMPONENTA CORPORATION

Sami Sivuranta

President and CEO

For further information. please contact:

Sami Sivuranta. President and CEO. tel. +358 10 403 2200

Marko Karppinen. CFO. tel. +358 10 403 2101

Componenta is an international technology company with operations located in
Finland. With its wide technology portfolio. Componenta produces e.g. cast.
machined and unmachined components for its clients who are local and global
manufacturers of vehicles. machines and equipment. The company’s share is listed
on Nasdaq Helsinki.

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