Componenta Oyj — Earnings Release 2021

Mar 4, 2022

Financial Statements Release 1 January–31 December 2021: Net sales increased and EBITDA improved clearly

Financial Statements Release 1 January–31 December 2021: Net sales increased and EBITDA improved clearly

Componenta Corporation Stock Exchange Release, 4 March 2022 at 8.00 a.m. EET

January–December 2021

· Net sales increased clearly from the previous year, amounting to EUR 87.3
million (EUR 70.0 million).
· EBITDA also improved clearly, amounting to EUR 5.0 million (EUR 3.7
million).
· The operating result was EUR 0.0 million (EUR -2.0 million).
· Cash flow from operating activities was EUR 2.8 million (EUR 6.4 million).

October–December 2021

· Net sales increased to EUR 25.3 million (EUR 17.5 million).
· EBITDA was EUR 1.4 million (EUR 1.9 million).
· The operating result was EUR 0.8 million (EUR 0.4 million).
· Cash flow from operating activities was EUR 2.4 million (EUR -0.6 million).

The information presented in this Financial Statements Release concerns the
development of Componenta Group’s continued operations in January–December 2021
and in the corresponding period in 2020 unless otherwise stated. The figures in
this release have not been audited.

Dividend proposal

The Group’s result for the financial year was EUR -0.4 million (EUR -0.9
million). On 31 December 2021, the parent company’s distributable funds totalled
EUR 15.7 million (EUR 14.7 million). Based on the balance sheet to be confirmed
for the financial year that ended on 31 December 2021, the Board of Directors
proposes that no dividend be paid for 2021.

Componenta’s guidance for 2022

Componenta expects its net sales from continued operations to be EUR 90–105
million in 2022. EBITDA is expected to improve from the previous year. Net sales
from continued operations in 2021 were EUR 87.3 million and EBITDA was EUR 5.0
million.

Poor availability of raw materials, increases in the prices of raw materials and
energy, the general economic situation and competitive climate, and the
development of customers’ sales volumes may affect business outlooks. Due to the
COVID-19 pandemic, the development of sales and profitability involves
uncertainties and poor predictability. According to Componenta’s assessment the
Group has no significant and immediate risk concentrations related to Russia and
Ukraine in customers or suppliers. Componenta has no own operations in Russia or
Ukraine. Unfavourable developments in the geopolitical situation in Russia and
Ukraine could have an impact on financial markets, sales volumes, the
availability and price development of raw materials and energy, and the
availability of foreign labour, leading to uncertainty when making future
estimates.

Sami Sivuranta, President and CEO:

“We managed well and mainly according to our expectations in the challenging
operating environment during the 2021 financial year. Our profitability improved
clearly, and operational development continued throughout the year. Non
-recurring items, totalling EUR 0.6 million, improved the result for the fourth
quarter of the previous year. Our net sales continued to improve,
thanks to successful new sales, increased market shares and the overall market
recovery.

Our employees’ resilience and strong commitment ensured a solid foundation for
positive development throughout the year, which was characterised by the COVID
-19 pandemic. Our employees’ ability to adapt and commit to our strict
restrictive measures significantly improved health security and wellbeing in our
units and also ensured good delivery and service capability throughout the year.

Due to increased sales volumes, we increased our capacity and our production
personnel resources throughout 2021. However, there have been challenges related
to labour availability, and the work permit processing times for foreign labour
have been exceptionally long. By our active efforts, we have been able to ensure
good service capability, even with our increasing delivery volumes, but this had
a temporary negative impact on productivity during the second half of the year.

Our customers’ forecasts and expectations for 2022 are mainly positive, which is
why our order book was very strong at the end of the review period. This gives
us an excellent start to the year.

The continued challenges with the availability of materials and components, as
well as problems in international supply chains, continued in our operating
environment and our customers’ operations in the fourth quarter. However, we
successfully managed our supply chains and ensured our own production, and
customers incurred no material shortages caused by Componenta.

In addition to the rising trend in purchase prices, the historically high prices
in the electricity market in December had a negative impact on profitability in
the fourth quarter. In terms of our main raw materials and electricity the cost
development is tied to indices included in customer pricing agreements and will
be revised in sales prices with a delay.

Componenta Castings Ltd’s restructuring programme was completed in October 2021.
This means all the restructuring programmes within the Group were completed
ahead of schedule during 2021. This will significantly improve Componenta’s
position and credibility from the perspective of our customers and suppliers, as
well as other stakeholders.

Our liquidity remained at a good level throughout the year. Due to the strong
growth in volumes, we responded to the availability challenges related to
certain materials by increasing our safety stock levels at our discretion. Our
liquidity has remained at a good level since the end of the review period.

In 2022, we will continue our efforts to further strengthen Componenta’s market
position and profitability as part of our growth strategy. In addition, we are
seeking to invest in our service capability, close customer relationships,
sustainability and highly competent personnel, as well as in expanding our
offering. We are investing in close partnerships with our customers, aiming to
be our customers’ preferred supplier with a comprehensive offering and excellent
service.”

Key figures

                                            2021    2020  Change, %

Net sales, continued operations, EUR 87,254 70,040 24.6
thousand
EBITDA, continued operations, EUR thousand 4,959 3,750 32.2
Operating result , continued operations, EUR 13 -2,034 100.6
thousand
Operating result, continued operations, % 0.0 -2.9 100.5
Result after financial items, continued -405 -3,489 88.4
operations, EUR thousand
Net result , continued operations, EUR -405 -3,175 87.3
thousand
Net result, including discontinued -405 -949 57.4
operations, EUR thousand
Basic earnings per share, EUR -0.04 -0.20 78.3
Diluted earnings per share, EUR -0.04 -0.20 79.0
Cash flow from operating activities, 2,837 6,355 -55.4
continued operations, EUR thousand
Interest-bearing net debt, EUR thousand 6,714 -2,584 359.8
Net gearing, % 28.6 -10.8 364.3
Return on equity, % -1.7 -5.8 70.8
Return on investment, % 3.2 0.7 386.3
Equity ratio, % 42.3 37.3 13.3
Capital expenditure incl. leases, continued 1,249 5,134 -75.7
operations, EUR thousand
Group’s restructing debt, EUR thousand 0 10,694 -100.0
Number of personnel at the end of the 612 574 6.6
period, incl. leased workers, continued
operations
Average number of personnel during the 592 589 0.5
period, incl. leased workers, continued
operations
Order book at the end of the review period, 13,954 9,536 46.3
continued operations, EUR thousand

Webcast

President and CEO Sami Sivuranta will present Financial Statements Release for
investors. analysts and media in a webcast on 4 March 2022 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://live.esf.fi/componentaq421

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 Corporation is an international technology company and Finland's
leading contract manufacturer in the machine building industry. Sustainability
and customer needs are at the core of the company’s broad technology portfolio.
Componenta Corporation manufactures components for its customers, which are
global manufacturers of machinery and equipment. The company’s stock is listed
on Nasdaq Helsinki. www.componenta.com

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