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Componenta Oyj Interim / Quarterly Report 2013
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Interim / Quarterly Report
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COMPONENTA
Casting Future Solutions
INTERIM REPORT
1 January – 30 June 2013
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
NET SALES AND OPERATING PROFIT IMPROVED FROM PREVIOUS QUARTER, THE COMPANY IS PREPARING TO STRENGTHEN ITS BALANCE SHEET
APRIL - JUNE 2013 IN BRIEF
- The Group's order book at end of June increased 6% to MEUR 95 (89) compared to the end of the previous quarter, but remained 5% lower than in the corresponding period in the previous year when it stood at MEUR 100.
- Second quarter net sales rose 10% from the previous quarter to MEUR 140 (128). Net sales were down, however, on the corresponding period in the previous year, when the net sales totalled MEUR 156.
- The Group's structural efficiency programme has progressed according to plan. Some 60% of the total annual savings of MEUR 25 are expected to affect the result already this year.
- EBITDA excluding one-time items was MEUR 13.1, which was higher than the figure of MEUR 8.2 in the previous quarter and also slightly higher than the MEUR 12.8 of the corresponding period in the previous year.
- Operating profit excluding one-time items improved from the previous quarter to MEUR 8.5 (3.8), although it was slightly down on the corresponding period in the previous year when it was MEUR 8.9. The improvement in the operating profit from the previous quarter was due to higher volumes and the cost savings achieved in the structural efficiency programme.
- The result after financial items excluding one-time items turned positive in the second quarter, standing at MEUR 2.9 (-2.2). It was also higher than in the corresponding period in the previous year, when it totalled MEUR 1.4.
- Earnings per share excluding one-time items was EUR 0.09, when it was EUR -0.09 in the first quarter of 2013 and EUR -0.04 in the second quarter of the previous year.
- Net cash flow from operations turned also positive in the second quarter, totalling MEUR 12.1, when it was MEUR -3.0 in the first quarter of 2013 and MEUR 0.3 in the second quarter in the previous year. It improved mainly due to changes in working capital.
- At the end of June cash funds and unused committed credit facilities totalled MEUR 41, which is MEUR 4 more than at the end of the previous quarter (MEUR 37). The corresponding figure in the previous year was MEUR 38.
- Componenta plans to strengthen shareholders' equity by at least MEUR 20 through an increase in share capital and a hybrid bond. In addition, at the same time the company is planning a bond issue that would be larger than the previous bond.
JANUARY - JUNE 2013 IN BRIEF
- Net sales were MEUR 268 (307).
- Capacity utilization rate was 62% (72%).
- EBITDA excluding one-time items was MEUR 21.3 (27.3).
- Operating profit excluding one-time items was MEUR 12.3 (19.1).
- One-time items totalled MEUR -1.1 (-0.2), mostly relating to ongoing restructuring of business operations.
- Net financial costs were MEUR -11.6 (-14.8).
- Result after financial costs excluding one-time items was MEUR 0.7 (4.3) and including one-time items MEUR -0.4 (4.0).
- Earnings per share excluding one-time items was EUR 0.00 (0.07) and including one-time items EUR -0.04 (0.06).
- Return on investment excluding one-time items was 7.7% (12.2%) and including one-time items 7.1% (12.0%).
- Return on equity excluding one-time items was 3.4% (7.0%) and including one-time items 1.0% (6.5%).
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
EFFICIENCY PROGRAMME TO BOOST OPERATIONS IN 2012 - 2014
The Group-wide efficiency improvement programme launched in October 2012 has progressed according to plan. The target for the efficiency programme is to improve the Group's profitability by EUR 25 million by the end of 2014. Some 60% of the savings are expected to affect the result already this year.
Progress has been made in the productivity improvement programme in Orhangazi, Turkey as planned under the organization that was renewed at the end of 2012. Numerous measures have been carried out to increase efficiency in different phases of the production process, and overall productivity has improved in line with the targets set. The productivity improvement programme in Orhangazi is expected to bring annual cost savings totalling EUR 9 million by the end of 2014.
The restructuring of the business units in the Netherlands and the cutting of 55 jobs were finalized during the first quarter. The job reductions bring annual cost savings of EUR 2.6 million, corresponding to approximately half of the total target for the programme in the Netherlands. Productivity has been raised in all production lines and the efficiency improvement programme was expanded during the second quarter. The efficiency improvement measures will continue until the end of 2013, and the rest of the savings will show in the operating profit in 2014.
The machining operations for long series at the Främmestad machine shop in Sweden are being transferred to the Orhangazi machine shop in Turkey, where this work is being concentrated. Construction of the expansion to the Orhangazi machine shop has made good progress and the finishing work and installation of machinery are expected to be completed in September 2013. Planning of the transfer of long series products has proceeded as planned, and the transfers will mainly take place during the final quarter of 2013 and the first quarter of 2014. These measures are expected to bring annual cost savings of EUR 3 million by the end of 2014.
One DISA production line at the Pietarsaari foundry will be closed as planned by the end of the third quarter. The steps needed to carry out the product transfers to the Group's foundries in Orhangazi, Turkey and Pori, Finland have made progress according to plan, and they are expected to improve the Group's operating profit by EUR 3 million by the end of 2014.
Measures to raise efficiency in the Group's administration, sales and engineering organization and cut fixed costs were carried out during the first quarter. The cost savings are estimated to be EUR 3 million already in 2013.
The measures in the efficiency programme for the forging business affected all three forges of Componenta Wirsbo. The running down of the forge in Smedjebacken and the transfer of products to the Arvika forge were started in the first quarter. In addition, altogether 41 jobs were cut in the forge business. These measures are expected to bring annual savings of some EUR 2 million during 2013.
COMPONENTA'S JANUARY - JUNE 2013 INTERIM REPORT
ORDER BOOK AND NET SALES
The Group's order book at the end of the review period totalled EUR 95 (100) million. The order book comprises confirmed orders for the next two months.
Net sales in the January - June review period totalled EUR 268
Quarterly analysis of changes in income statement:
| MEUR | Q1/13 | Q1/12 | Change % | Q2/13 | Q2/12 | Change % |
|---|---|---|---|---|---|---|
| Net sales | 127.7 | 150.4 | -15% | 140.3 | 156.4 | -10% |
| Value of production | 130.4 | 154.3 | -16% | 145.1 | 158.5 | -8% |
| Materials | -53.9 | -64.0 | -16% | -57.0 | -66.1 | -14% |
| Direct wages and external services | -29.0 | -31.8 | -9% | -33.0 | -35.5 | -7% |
| Other variable and fixed costs | -39.3 | -44.1 | -11% | -41.9 | -44.1 | -5% |
| Total costs | -122.2 | -139.8 | -13% | -132.0 | -145.7 | -9% |
| EBITDA | 8.2 | 14.5 | -44% | 13.1 | 12.8 | 3% |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
(307) million. The Group's capacity utilization rate in the review period was 62% (72%).
Componenta's net sales in the review period by customer sector were as follows: heavy trucks 30% (27%), construction and mining 20% (25%), machine building 18% (19%), agricultural machinery 19% (16%) and automotive 13% (14%).
RESULT
EBITDA for the six month review period excluding one-time items was EUR 21.3 (27.3) million.
The Group's operating profit for the six month review period excluding one-time items was EUR 12.3 (19.1) million. The weaker operating profit during the review period was mainly caused by lower volumes.
One-time items in the review period totalled EUR -1.1 (-0.2) million. The one-time items mostly relate to the ongoing restructuring of business operations.
The Group's net financial costs in the review period totalled EUR -11.6 (-14.8) million. Net financial costs declined from the corresponding period in the previous year as the result of lower interest costs and considerably lower refinancing costs.
The Group's result for the January-June period after financial items, excluding one-time items, was EUR 0.7 (4.3) million and after one-time items EUR -0.4 (4.0) million.
Earnings per share without dilution, excluding one-time items, were EUR 0.00 (0.07) in the review period, and including one-time items EUR -0.04 (0.06).
The return on investment in the review period excluding one-time items was 7.7% (12.2%) and after one-time items 7.1% (12.0%). The return on equity excluding one-time items was 3.4% (7.0%) and after one-time items 1.0% (6.5%).
BALANCE SHEET, FINANCING AND CASH FLOW
Componenta has started preparations for measures to strengthen the Group's balance sheet. Componenta plans to strengthen its equity by at least EUR 20 million through an increase in share capital and a hybrid bond in August. Current shareholders in the company, holding more than 50% of the company shares, are favourably inclined to the strengthening of equity and are ready to subscribe to the share issue by EUR 4 million, if the plan is carried out on terms that are satisfactory to them and with adequate coverage. In addition, at the same time the company is planning a bond issue that would be larger than the previously issued bond. Marketing of the new bond and hybrid bond will begin in the middle of August.
At the end of June, Componenta's cash funds and bank receivables totalled EUR 20.8 (38.2) million. In addition, at the end of the review period Componenta's Turkish subsidiary, Componenta Dökümçülük A.S., had unused committed credit facilities from Turkish banks totaling EUR 20.5 million. At the end of June, including the unused credit facilities from Turkish banks, Componenta had liquid assets of EUR 41.3 million, an improvement of EUR 3.9 million from the end of the previous quarter, when they totalled EUR 37.4 million.
The financial markets in Turkey have developed favourably over the past few years. A considerable number of financially stable, growing banks operate in Turkey. As a result Componenta has gradually moved the focus for its financing to Turkey, at the same time when growth and focus for its business operations have concentrated there.
The Group's interest-bearing net debt, excluding the outstanding capital notes of EUR 27.4 million as defined in IFRS, totalled EUR 214 (184) million at the end of June. At the end of the review period the company raised a new capital note of EUR 4 million, including EUR 2 million from a related party. The Group also has a EUR 150 million commercial paper programme, but had no debt from this at the end of the period. The company's net debt as a proportion of shareholders' equity, including the capital notes in shareholders' equity, was 205% (167%).
At the end of June the Group's equity ratio was 15.8% (17.7%). The Group's shareholders' equity at the end of June, including the capital notes in shareholders' equity, as a proportion of the balance sheet total was 21.4% (23.5%).
Net cash flow from operations improved in the second quarter from the previous quarter to EUR 12.1 (-3.0) million, and within this the changes in working capital were EUR 5.7 (-4.1) million. Inventories increased, however, from the previous quarter as the business units prepared for deliveries during the holiday downtimes. Net cash flow from operations in the six month period was EUR 9.1 million, and thus, stronger than in the corresponding period in the previous year (EUR 5.6 million).
Componenta makes more efficient use of capital with a programme to sell its trade receiv-
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
ables. Under this arrangement, some of the trade receivables are sold without any right of recourse. The volume of trade receivables sold rose from the end of the previous quarter to EUR 87.4 (81.9) million. The Group also makes more efficient use of capital with a programme to sell small amounts of its trade payables in Turkey.
INVESTMENTS
Investments in production facilities in the review period totalled EUR 7.9 (9.7) million, and financial lease investments accounted for EUR 0.5 (0.6) million of these. The net cash flow from investments was EUR -7.0 (-10.3) million, which includes the cash flow from the Group's investments in tangible and intangible assets, and the cash flow from shares sold and purchased and from the sale of fixed assets.
PERFORMANCE OF BUSINESS SEGMENTS
Componenta changed its segment reporting model as from 1 January 2013 so that from that date reporting is based on new business divisions instead of geographical segments. Further information about the impact of the new segment reporting model on Componenta's financial reporting was given in a separate release on 18 April 2013.
Foundry Division
The production units in the Foundry Division are located in Orhangazi in Turkey, in Heerlen and Weert in the Netherlands, and in Ihsalmi, Karkkila, Pietarsaari and Pori in Finland.
At the end of June the order book for the Foundry Division stood at EUR 54.6 (59.7) million. The order book at the end of the previous quarter was EUR 58.7 million. The order book for the Foundry Division comprises orders from manufacturers of heavy trucks, construction and mining machinery, agricultural machinery, and from the machine building industry.
The April - June net sales for the Foundry Division totalled EUR 95.9 (108.3) million. The net sales rose 12.9% from the previous quarter, when it was EUR 85.0 million.
The April - June operating profit was EUR 5.0 million, or 5.2% of net sales (EUR 4.9 million; 4.5%). The operating profit rose clearly from the previous quarter of EUR 2.6 million or 3.0% of net sales on account of higher volumes and enhanced efficiency in its operations.
Net sales for the Foundry Division in the review period totalled EUR 181 (215) million and the operating profit was EUR 7.5 million or 4.2% of net sales (EUR 10.5 million, 4.9%).
At the end of June, the number of personnel in the Foundry Division, including leased employees was at 2,969 (3,308). The number of personnel at the end of the previous quarter, including leased employees, was 2,818.
Machine Shop Division
The production units in the Machine Shop Division are located in Orhangazi in Turkey and in Främ mestad in Sweden. The production unit for pistons in Pietarsaari in Finland also belongs to the division.
At the end of June the order book for the Machine Shop Division stood at EUR 24.3 (22.0) million. The order book increased also compared to EUR 20.4 million at the end of previous quarter. The order book for the Machine Shop Division comprises orders from manufacturers of heavy trucks, construction and mining machinery, agricultural machinery, and from the machine building industry.
April - June net sales for the Machine Shop Division were EUR 30.9 (32.6) million. Net sales, however, rose 11.5% from the previous quarter, when it was EUR 27.7 million.
The April - June operating profit was EUR 0.9 million or 2.8% of net sales (EUR 0.8 million; 2.4%). The operating profit increased from the previous quarter on account of higher volumes and enhanced efficiency in its operations. The previous quarter's operating profit was EUR 0.0 million, or 0.1% of net sales.
Net sales in the review period totalled EUR 58.6 (64.7) million and operating profit EUR 0.9 million or 1.5% of net sales (EUR 1.8 million; 2.7%).
At the end of June, the number of personnel in the Machine Shop Division, including leased employees, was 398 (382). At the end of the previous quarter the number was 372.
Aluminium Division
The production units in the Aluminium Division are located in Manisa in Turkey and comprise the aluminium foundry and the production unit for aluminium wheels.
At the end of June the order book for the Aluminium Division stood at EUR 14.1 (13.2) million. The order book increased also compared to the previous quarter end when it was EUR 12.4 million. The order book for the Aluminium Division comprises orders from the automotive and heavy truck industries.
April - June net sales for the Aluminium Division totalled EUR 18.7 (19.3) million. The April - June net
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
sales, however, increased 9.7% from EUR 17.1 million in the previous quarter.
The April - June operating profit was EUR 2.3 million, or 12.1% of net sales (EUR 2.6 million; 13.6%). The operating profit, however, increased from the previous quarter, when it totalled EUR 2.0 million, or 11.5% of net sales. The operating profit of the Aluminium Division increased from the previous quarter because of higher volumes.
Net sales in the review period totalled EUR 35.8 (39.1) million and the operating profit EUR 4.2 million or 11.8% of net sales (EUR 6.0 million; 15.4%).
At the end of June, the number of personnel in the Aluminium Division, including leased employees, was at 762 (717). At the end of the previous quarter the number was 671.
Other Business
Other business comprises the Wirsbo forges in Sweden, the sales and logistics company Componenta UK Ltd in Great Britain, service and real estate companies in
Finland, the Group's administrative functions and the associated company Kumsan A.S. in Turkey. Other business recorded an operating result for the April - June period of EUR 0.8 (0.4) million and for the review period of EUR 0.4 (0.6) million.
PERSONNEL
The Group had on average 4,413 (4,777) employees during the review period, including 295 (480) leased employees. The number of Group personnel at the end of the period was 4,606 (4,842), which includes 386 (514) leased employees. At the end of June, 57% (55%) of personnel were in Turkey, 18% (19%) in Finland, 14% (18%) in the Netherlands, and 11% (8%) in Sweden.
SHARES AND SHARE CAPITAL
The shares of Componenta Corporation are quoted on the NASDAQ OMX Exchange in Helsinki. At the end of June the company had a total of 22,231,173 shares and the company's share capital stood at EUR 21.9 (21.9) million. The quoted
price at the end of June 2013 stood at EUR 1.48 (2.93). The average price during the period was EUR 1.82, the lowest price was EUR 1.47 and the highest EUR 2.12. At the end of the review period the share capital had a market capitalization of EUR 32.9 (65.1) million and the volume of shares traded during the period was equivalent to 5.2% (3.5%) of the share stock.
CHANGES IN MANAGEMENT
Furio Scolaro was appointed Senior Vice President, Sales and Product Development, and member of the Corporate Executive Team as from 1 June 2013. Antti Lehto, formerly Senior Vice President, Sales and Customer Services, left the company on that date to take up employment elsewhere.
At the end of the review period the Corporate Executive Team comprised: President and CEO Heikki Lehtonen; Juha Alhonoja, Senior Vice President, Machine Shop Division; CFO Mika Hassinen; Olli Karhunen, Senior Vice President, Foundry Division; Anu Mankki, Senior Vice President,
Net sales, MEUR
Operating profit excluding one-time items, MEUR
Result after financial items, excluding one-time items, MEUR
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
HR and Internal Communications; Pauliina Rannikko, Senior Vice President, Legal and Risk Management; Furio Scolaro, Senior Vice President, Sales and Product Development, and Sabri Özdogan, Senior Vice President, Aluminium Division. Communications Director Pirjo Aarniovuori is secretary to the Corporate Executive Team.
RISKS AND BUSINESS UNCERTAINTIES
The most significant risks for Componenta are risks related to the business environment (competition and price risk, commodity and environmental risks), operational risks (customer and supplier risks, productivity, production and process risks, labour market disruptions, contract and product liability risks, personnel risks, and data security risks) as well as financial risks (financing and liquidity risk, currency, interest rate and credit risks).
In order to manage the Group's business operations it is essential to secure the availability of certain raw materials, such as recycled metal and pig iron, and of energy, at competitive prices. The cost risk relating to raw materials is mainly managed with price agreements, and under these agreements the prices of products are adjusted in line with the changes in raw material prices. Increases in prices for raw materials may tie up more funds in working capital than estimated.
The financial risks relating to Componenta's business operations are managed in accordance with the treasury policy approved by the Board of Directors. The objective is to protect the Group against unfavourable changes in the financial markets and to secure the Group's financial performance and financial position.
More detailed information about the risks to which Componenta is exposed and risk management is given in the notes to the 2012 financial statements.
EVENTS AFTER END OF REVIEW PERIOD
The Board of Directors proposes to the Extraordinary General Meeting to be held on 16 August 2013 that the General Meeting authorises the Board of Directors to resolve on a share issue and an issue of special rights. The aggregate amount of shares to be issued, including the shares to be received based on special rights, shall not exceed 2,500,000 shares. The authorisation does not cancel the earlier authorisation to resolve on a share issue and issue of special rights entitling to shares given to the Board of Directors by the Annual General Meeting of Shareholders on 22 March 2013.
The proposed maximum amount of the authorisation and the authorisation to resolve on a share issue and issue of special rights entitling to shares, amounting to maximum 7,500,000 shares given to the Board of Directors by the Annual General Meeting of shareholders on 22 March 2013, correspond together approximately to 45 per cent of all the shares in the company. The authorisation is proposed to be used to strengthen the balance sheet and financial position of the company or for other purposes to be decided by the Board of Directors.
Sales by market area
Germany 21%
Sweden 19%
Turkey 14%
UK 11%
Finland 9%
Benelux 7%
France 6%
Italy 5%
Other European countries 3%
USA 3%
Other countries 2%
Sales by customer industry
Heavy trucks 30%
Construction and mining 20%
Machine building 18%
Agricultural machinery 19%
Automotive 13%
Personnel by country
Turkey 57%
Finland 18%
Netherlands 14%
Sweden 11%
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
BUSINESS ENVIRONMENT
The demand outlook for the Group remains uncertain, although there are signs of a turn for the better in certain customer sectors.
At the end of June the order book for Componenta's heavy trucks customer sector was 13% higher than at the end of the previous quarter. Demand for heavy trucks is expected to continue to rise in the second half of the year.
The order book for Componenta's construction and mining customer sector was 2% lower at the end of June than at the end of the previous quarter. Demand for construction and mining machinery is expected to pick up in the customer sector during the second half of 2013 compared to the first half mainly due to the normalization of customers' inventory levels.
At the end of the review period, the order book for Componenta's machine building customer segment was similar to that at the end of the previous quarter. Prospects in the machine building industry for the rest of 2013 remain uncertain.
The order book for Componenta's agricultural machinery customer sector was 2% higher at the end of June than at the end of the previous quarter. Demand for agricultural machinery started to pick up after the first quarter and is expected to improve further in the second half of 2013.
The order book for Componenta's automotive customer sector was 17% higher at the end of June than at the end of the previous quarter. Componenta's deliveries to the automotive industry are expected to increase during the latter part of the year.
PROSPECTS FOR COMPONENTA
The prospects for Componenta in 2013 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta's order intake and order book.
The continuing uncertainty in the European and global economy has weakened demand for investment in Componenta's customer sectors. Componenta's order book however increased 6% from the end of the previous quarter to EUR 95 (89) million.
Full year prospects remain unchanged. Net sales in 2013 are expected to remain at the same level as in the previous year and, in consequence of the structural efficiency measures being carried out, the operating profit excluding one-time items is expected to improve from the previous year.
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
INTERIM REPORT TABLES
Componenta has applied the same accounting principles in this interim report as in the financial statements for 2012, apart from the change in the structure for segment reporting. In addition, at the beginning of the financial year the company has taken into use certain new or revised IFRS standards as described in the 2012 financial statements.
Consolidated income statement excluding one-time items
| MEUR | 1.1.-30.6.2013 | 1.1.-30.6.2012 | 1.4.-30.6.2013 | 1.4.-30.6.2012 | 1.1.-31.12.2012 |
|---|---|---|---|---|---|
| Net sales | 268.0 | 306.8 | 140.3 | 156.4 | 544.8 |
| Other operating income | 2.1 | 2.3 | 1.0 | 1.2 | 1.0 |
| Operating expenses | -248.8 | -281.7 | -128.2 | -144.8 | -519.6 |
| Depreciation, amortization and write-downs | -9.1 | -8.4 | -4.7 | -4.0 | -16.3 |
| Share of the associated companies' result | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 |
| Operating profit | 12.3 | 19.1 | 8.5 | 8.9 | 10.0 |
| % of net sales | 4.6 | 6.2 | 6.1 | 5.7 | 1.8 |
| Financial income and expenses | -11.6 | -14.8 | -5.7 | -7.4 | -27.7 |
| Result after financial items | 0.7 | 4.3 | 2.9 | 1.4 | -17.6 |
| % of net sales | 0.3 | 1.4 | 2.0 | 0.9 | -3.2 |
| Income taxes | 0.6 | -1.8 | -0.1 | -1.7 | 0.1 |
| Net profit | 1.3 | 2.4 | 2.7 | -0.2 | -17.6 |
| Allocation of net profit for the period | |||||
| To equity holders of the parent | 1.0 | 1.8 | 2.5 | -0.5 | -17.9 |
| To non-controlling interest | 0.3 | 0.6 | 0.2 | 0.3 | 0.3 |
| 1.3 | 2.4 | 2.7 | -0.2 | -17.6 | |
| Earnings per share calculated on the profit attributable to equity holders of the parent | |||||
| Earnings per share, EUR | 0.00 | 0.07 | 0.09 | -0.04 | -0.92 |
Consolidated income statement
| MEUR | 1.1.-30.6.2013 | 1.1.-30.6.2012 | 1.4.-30.6.2013 | 1.4.-30.6.2012 | 1.1.-31.12.2012 |
|---|---|---|---|---|---|
| Net sales | 268.0 | 306.8 | 140.3 | 156.4 | 544.8 |
| Other operating income | 2.0 | 2.4 | 0.9 | 1.2 | 2.3 |
| Operating expenses | -249.8 | -282.0 | -128.7 | -144.9 | -525.3 |
| Depreciation, amortization and write-downs | -9.1 | -8.5 | -4.7 | -4.0 | -17.9 |
| Share of the associated companies' result | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 |
| Operating profit | 11.3 | 18.8 | 8.0 | 8.7 | 4.0 |
| % of net sales | 4.2 | 6.1 | 5.7 | 5.6 | 0.7 |
| Financial income and expenses | -11.6 | -14.8 | -5.7 | -7.4 | -29.4 |
| Result after financial items | -0.4 | 4.0 | 2.3 | 1.3 | -25.4 |
| % of net sales | -0.1 | 1.3 | 1.6 | 0.8 | -4.7 |
| Income taxes | 0.8 | -1.8 | 0.0 | -1.6 | 1.4 |
| Net profit | 0.4 | 2.3 | 2.3 | -0.3 | -24.0 |
| Allocation of net profit for the period | |||||
| To equity holders of the parent | 0.0 | 1.6 | 2.1 | -0.6 | -24.3 |
| To non-controlling interest | 0.3 | 0.6 | 0.2 | 0.3 | 0.3 |
| 0.4 | 2.3 | 2.3 | -0.3 | -24.0 | |
| Earnings per share calculated on the profit attributable to equity holders of the parent | |||||
| Earnings per share, EUR | -0.04 | 0.06 | 0.07 | -0.05 | -1.22 |
| Earnings per share with dilution, EUR | -0.04 | 0.06 | 0.07 | -0.05 | -1.22 |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Consolidated statement of comprehensive income
| MEUR | 1.1.–30.6.2013 | 1.1.–30.6.2012 | 1.4.–30.6.2013 | 1.4.–30.6.2012 | 1.1.–31.12.2012 |
|---|---|---|---|---|---|
| Net profit | 0.4 | 2.3 | 2.3 | -0.3 | -24.0 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to profit or loss | |||||
| Revaluation of buildings and land areas | - | - | - | - | 27.3 |
| Items that may be reclassified subsequently to profit or loss | |||||
| Translation differences | -0.7 | 5.2 | -0.3 | -0.3 | 5.8 |
| Cash flow hedges | -0.4 | -0.6 | -0.4 | -0.6 | 0.3 |
| Other items | 0.0 | 0.1 | 0.0 | 0.1 | 0.1 |
| Total items that may be reclassified to profit or loss subsequently | -1.0 | 4.7 | -0.7 | -0.8 | 6.2 |
| Income tax on other comprehensive income | 0.1 | 0.2 | 0.1 | 0.2 | -1.6 |
| Other comprehensive income, net of tax | -0.9 | 4.8 | -0.6 | -0.7 | 31.9 |
| Total comprehensive income | -0.6 | 7.1 | 1.7 | -1.0 | 7.8 |
| Allocation of total comprehensive income | |||||
| To equity holders of the parent | -0.9 | 6.2 | 1.4 | -1.2 | 5.6 |
| To non-controlling interest | 0.3 | 0.9 | 0.3 | 0.3 | 2.2 |
| -0.6 | 7.1 | 1.7 | -1.0 | 7.8 |
Consolidated statement of financial position
| MEUR | 30.6.2013 | 30.6.2012 | 31.12.2012 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 5.9 | 6.1 | 6.3 |
| Goodwill | 29.1 | 29.1 | 29.1 |
| Investment properties | 11.4 | 11.6 | 11.4 |
| Tangible assets | 253.1 | 217.0 | 255.9 |
| Investment in associates | 1.4 | 1.4 | 1.4 |
| Receivables | 4.2 | 4.3 | 4.2 |
| Other investments | 0.8 | 0.9 | 0.9 |
| Deferred tax assets | 33.7 | 28.7 | 31.3 |
| Total non-current assets | 339.6 | 299.1 | 340.5 |
| Current assets | |||
| Inventories | 77.1 | 70.8 | 65.2 |
| Receivables | 49.4 | 46.5 | 32.3 |
| Tax receivables | 0.1 | 1.4 | 1.8 |
| Assets held for sale | - | 11.0 | - |
| Cash and cash equivalents | 20.8 | 38.2 | 20.6 |
| Total current assets | 147.4 | 167.8 | 119.8 |
| Total assets | 486.9 | 466.9 | 460.4 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | |||
| Share capital | 21.9 | 21.9 | 21.9 |
| Other equity | 47.1 | 53.3 | 52.7 |
| Equity attributable to equity holders of the parent company | 68.9 | 75.2 | 74.6 |
| Non-controlling interest | 7.7 | 7.5 | 8.8 |
| Shareholders' equity | 76.7 | 82.7 | 83.4 |
| Liabilities | |||
| Non-current | |||
| Capital loans | 23.7 | 23.4 | 19.6 |
| Interest bearing | 101.9 | 129.7 | 182.7 |
| Interest free | 1.0 | 1.7 | 1.1 |
| Provisions | 8.9 | 9.6 | 8.3 |
| Deferred tax liability | 9.4 | 8.7 | 12.0 |
| Current | |||
| Capital loans | 3.7 | 3.7 | 3.7 |
| Interest bearing | 132.4 | 92.0 | 50.9 |
| Interest free | 123.7 | 110.7 | 92.5 |
| Tax liabilities | 1.5 | 2.5 | 0.2 |
| Provisions | 4.0 | 2.2 | 5.8 |
| Total liabilities | 410.2 | 384.1 | 377.0 |
| Total shareholders' equity and liabilities | 486.9 | 466.9 | 460.4 |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Condensed consolidated cash flow statement
| MEUR | 1.1.–30.6.2013 | 1.1.–30.6.2012 | 1.1.–31.12.2012 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Result after financial items | -0.4 | 4.0 | -25.4 |
| Depreciation, amortization and write-downs | 9.1 | 8.5 | 17.9 |
| Net financial income and expenses | 11.6 | 14.8 | 29.4 |
| Other income and expenses, adjustments to cash flow | -1.3 | 0.3 | 0.7 |
| Change in net working capital | 1.6 | -6.6 | -1.0 |
| Cash flow from operations before financing and income taxes | 20.7 | 20.9 | 21.7 |
| Interest received and paid and dividends received | -7.9 | -11.8 | -26.3 |
| Taxes paid | -3.7 | -3.6 | -4.0 |
| Net cash flow from operating activities | 9.1 | 5.6 | -8.7 |
| Cash flow from investing activities | |||
| Acquisition of subsidiaries, net of cash acquired | -0.1 | - | -0.2 |
| Capital expenditure in tangible and intangible assets | -7.4 | -10.4 | -19.5 |
| Proceeds from tangible and intangible assets | 0.6 | 0.1 | 0.2 |
| Other investments and loans granted | 0.0 | -0.2 | 0.0 |
| Proceeds from other investments and repayments of loan receivables | 0.0 | 0.2 | 0.2 |
| Net cash flow from investing activities | -7.0 | -10.3 | -19.2 |
| Cash flow from financing activities | |||
| Dividends paid | -1.1 | - | -0.7 |
| Interest paid, hybrid bond | -2.5 | - | - |
| Proceeds from share issue | - | 15.1 | 15.1 |
| Proceeds from the issue of hybrid bond | - | 7.9 | 7.9 |
| Repayment of finance lease liabilities | -1.6 | -0.1 | -0.6 |
| Draw-down (+)/ repayment (-) of current loans | 10.6 | -74.3 | -142.6 |
| Draw-down of non-current loans | 12.0 | 89.0 | 168.5 |
| Repayment of non-current loans and other changes | -19.5 | -36.6 | -41.6 |
| Net cash flow from financing activities | -2.0 | 0.3 | 5.9 |
| Change in liquid assets | 0.1 | -4.4 | -22.0 |
| Cash and cash equivalents at the beginning of the period | 20.6 | 41.6 | 41.6 |
| Effects of exchange rate changes on cash | 0.0 | 1.0 | 1.0 |
| Cash and cash equivalents at the period end | 20.8 | 38.2 | 20.6 |
Statement of changes in consolidated shareholders' equity
| MEUR | Share capital | Share premium account | Other reserves | Cash flow hedges | Translation differences | Retained earnings | Total | Non-controlling interest | Share holders' equity total |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1.1.2012 | 21.9 | 15.0 | 35.2 | -0.7 | -41.0 | 3.4 | 33.8 | 7.3 | 41.1 |
| Net profit | 1.6 | 1.6 | 0.6 | 2.3 | |||||
| Translation differences | 4.9 | 4.9 | 0.3 | 5.2 | |||||
| Cash flow hedges | -0.5 | -0.5 | -0.5 | ||||||
| Other comprehensive income items | 0.1 | 0.1 | 0.1 | ||||||
| Total comprehensive income | 0.1 | -0.5 | 4.9 | 1.6 | 6.2 | 0.9 | 7.1 | ||
| Share issue | 14.8 | 14.8 | 14.8 | ||||||
| Issue of hybrid bond | 20.4 | 20.4 | 20.4 | ||||||
| Dividend | 0.0 | -0.7 | -0.7 | ||||||
| Shareholders' equity 30.6.2012 | 21.9 | 15.0 | 70.5 | -1.2 | -36.1 | 5.0 | 75.2 | 7.5 | 82.7 |
| MEUR | Share capital | Share premium account | Other reserves | Cash flow hedges | Translation differences | Retained earnings | Total | Non-controlling interest | Share holders' equity total |
| Shareholders' equity 1.1.2013 | 21.9 | 15.0 | 94.7 | -0.4 | -35.6 | -20.9 | 74.6 | 8.8 | 83.4 |
| Net profit | 0.0 | 0.0 | 0.3 | 0.4 | |||||
| Translation differences | -0.6 | -0.6 | 0.0 | -0.7 | |||||
| Cash flow hedges | -0.3 | -0.3 | -0.3 | ||||||
| Other comprehensive income items | 0.0 | 0.0 | 0.0 | ||||||
| Total comprehensive income | 0.0 | -0.3 | -0.6 | 0.0 | -0.9 | 0.3 | -0.6 | ||
| Interest, hybrid bond | -1.9 | -1.9 | -1.9 | ||||||
| Dividend | 0.0 | -1.1 | -1.1 | ||||||
| Items decreased directly from equity *) | -2.9 | -2.9 | -0.2 | -3.1 | |||||
| Shareholders' equity 30.6.2013 | 21.9 | 15.0 | 94.7 | -0.7 | -36.2 | -25.7 | 68.9 | 7.7 | 76.7 |
*) Prior year 2004 the subsidiary in Turkey has recorded the inflation related value increase adjustments directly in equity in accordance with IAS 29. The inflation adjustments have been reclassified in equity and the tax charges of the reclassification have been recorded directly in equity, hence the value adjustments were also recorded directly in equity at the time.
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Key Ratios
| 30.6.2013 | 30.6.2012 | 31.12.2012 | |
|---|---|---|---|
| Equity ratio, % | 15.8 | 17.7 | 18.1 |
| Equity per share, EUR | 3.10 | 3.38 | 3.36 |
| Invested capital at period end, MEUR | 338.4 | 331.6 | 340.4 |
| Return on investment, excl. one-time items, % | 7.7 | 12.2 | 4.0 |
| Return on investment, % | 7.1 | 12.0 | 2.0 |
| Return on equity, excl. one-time items, % | 3.4 | 7.0 | -24.8 |
| Return on equity, % | 1.0 | 6.5 | -32.9 |
| Net interest bearing debt, preferred capital note in debt, MEUR | 240.9 | 210.6 | 236.4 |
| Net gearing, preferred capital note in debt, % | 314.2 | 254.6 | 283.5 |
| Order book, MEUR | 94.7 | 99.9 | 82.9 |
| Investments in non-current assets without finance leases, MEUR | 7.4 | 9.1 | 18.6 |
| Investments in non-current assets incl. finance leases, MEUR | 7.9 | 9.7 | 19.2 |
| Investments in non-current assets (incl. finance leases), % of net sales | 3.0 | 3.1 | 3.5 |
| Average number of personnel during the period | 4,118 | 4,298 | 4,249 |
| Average number of personnel during the period, incl. leased personnel | 4,413 | 4,777 | 4,642 |
| Number of personnel at period end | 4,220 | 4,328 | 4,104 |
| Number of personnel at period end, incl. leased personnel | 4,606 | 4,842 | 4,277 |
| Share of export and foreign activities in net sales, % | 91.3 | 91.6 | 92.0 |
| Contingent liabilities, MEUR | 527.8 | 532.9 | 529.0 |
| Earnings per share (EPS), EUR | -0.04 | 0.06 | -1.22 |
| Earnings per share, with dilution (EPS), EUR | -0.04 | 0.06 | -1.22 |
| Cash flow per share, EUR | 0.41 | 0.28 | -0.41 |
Changes in tangible assets and goodwill
| MEUR | 1-6/2013 | 1-6/2012 | 1-12/2012 |
|---|---|---|---|
| Changes in tangible assets | |||
| Acquisition cost at the beginning of the period | 571.1 | 481.1 | 481.1 |
| Translation differences | -2.4 | 9.0 | 10.8 |
| Additions | 6.7 | 9.4 | 17.2 |
| Companies acquired | - | - | 17.3 |
| Revaluation of buildings and land areas | - | - | 27.3 |
| Disposals and transfers between items | -5.8 | -4.2 | 17.2 |
| Acquisition cost at the end of the period | 569.6 | 495.4 | 571.1 |
| Accumulated depreciation at the beginning of the period | -315.1 | -268.7 | -268.7 |
| Translation differences | 1.5 | -5.1 | -6.2 |
| Accumulated depreciation on disposals and transfers | 4.9 | 2.8 | -10.3 |
| Accumulated depreciation on companies acquired | - | - | -14.3 |
| Depreciation, amortization and write-downs during the period | -7.7 | -7.3 | -15.6 |
| Accumulated depreciation at the end of the period | -316.5 | -278.3 | -315.1 |
| Book value at the end of the period | 253.1 | 217.0 | 255.9 |
| Goodwill | |||
| Acquisition cost at the beginning of the period | 29.1 | 28.0 | 28.0 |
| Translation difference | 0.0 | 1.1 | 1.1 |
| Book value at the end of the period | 29.1 | 29.1 | 29.1 |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Group development
Net sales by market area
| MEUR | 1-12/2012 | 1-6/2012 | 1-6/2013 |
|---|---|---|---|
| Germany | 105.6 | 57.8 | 55.7 |
| Sweden | 97.1 | 54.7 | 49.9 |
| Turkey | 76.0 | 44.4 | 37.6 |
| UK | 55.4 | 30.9 | 29.1 |
| Finland | 46.3 | 25.8 | 23.2 |
| Benelux countries | 44.4 | 25.3 | 19.7 |
| France | 35.5 | 20.5 | 17.1 |
| Italy | 33.1 | 16.7 | 14.0 |
| Other European countries | 19.1 | 10.9 | 8.9 |
| Other countries | 32.2 | 19.7 | 12.9 |
| Total | 544.8 | 306.8 | 268.0 |
Quarterly development by market area
| MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 |
|---|---|---|---|---|---|---|
| Germany | 28.2 | 29.6 | 24.3 | 23.5 | 27.9 | 27.8 |
| Sweden | 25.8 | 28.8 | 19.3 | 23.2 | 22.6 | 27.2 |
| Turkey | 23.2 | 21.2 | 17.1 | 14.6 | 17.2 | 20.4 |
| UK | 15.3 | 15.6 | 12.1 | 12.4 | 13.8 | 15.3 |
| Finland | 11.6 | 14.2 | 10.6 | 9.9 | 11.3 | 11.9 |
| Benelux countries | 12.9 | 12.5 | 9.4 | 9.6 | 9.6 | 10.1 |
| France | 10.3 | 10.2 | 7.7 | 7.3 | 7.8 | 9.2 |
| Italy | 8.3 | 8.4 | 9.0 | 7.4 | 6.9 | 7.1 |
| Other European countries | 5.4 | 5.6 | 4.2 | 3.9 | 4.2 | 4.6 |
| Other countries | 9.4 | 10.3 | 7.0 | 5.5 | 6.2 | 6.7 |
| Total | 150.4 | 156.4 | 120.7 | 117.3 | 127.7 | 140.3 |
Group development excluding one-time items
| MEUR | 1-12/2012 | 1-6/2012 | 1-6/2013 |
|---|---|---|---|
| Net sales | 544.8 | 306.8 | 268.0 |
| Operating profit | 10.0 | 19.1 | 12.3 |
| Net financial items *) | -27.7 | -14.8 | -11.6 |
| Profit after financial items | -17.6 | 4.3 | 0.7 |
*) Net financial items are not allocated to business segments
Group development by business segment excluding one-time items
| Operating profit, MEUR | 1-12/2012 | 1-6/2012 | 1-6/2013 |
|---|---|---|---|
| Foundry division | -2.9 | 10.5 | 7.5 |
| Machine shop division | 2.3 | 1.8 | 0.9 |
| Aluminium division | 9.2 | 6.0 | 4.2 |
| Other business | 0.3 | 0.6 | 0.4 |
| Internal items | 1.1 | 0.2 | -0.7 |
| Componenta total | 10.0 | 19.1 | 12.3 |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Group development by quarter excluding one-time items
| MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 |
|---|---|---|---|---|---|---|
| Net sales | 150.4 | 156.4 | 120.7 | 117.3 | 127.7 | 140.3 |
| Operating profit | 10.2 | 8.9 | -5.5 | -3.5 | 3.8 | 8.5 |
| Net financial items *) | -7.4 | -7.4 | -7.0 | -5.9 | -6.0 | -5.7 |
| Profit after financial items | 2.8 | 1.4 | -12.4 | -9.5 | -2.2 | 2.9 |
*) Net financial items are not allocated to business segments
Quarterly development by business segment excluding one-time items
| Operating profit, MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 |
|---|---|---|---|---|---|---|
| Foundry division | 5.6 | 4.9 | -9.0 | -4.3 | 2.6 | 5.0 |
| Machine shop division | 1.0 | 0.8 | 1.4 | -0.8 | 0.0 | 0.9 |
| Aluminium division | 3.4 | 2.6 | 1.8 | 1.4 | 2.0 | 2.3 |
| Other business | 0.2 | 0.4 | -0.3 | 0.0 | -0.4 | 0.8 |
| Internal items | 0.0 | 0.1 | 0.6 | 0.2 | -0.3 | -0.3 |
| Componenta total | 10.2 | 8.9 | -5.5 | -3.5 | 3.8 | 8.5 |
Group development
| MEUR | 1-12/2012 | 1-6/2012 | 1-6/2013 |
|---|---|---|---|
| Net sales | 544.8 | 306.8 | 268.0 |
| Operating profit | 4.0 | 18.8 | 11.3 |
| Net financial items *) | -29.4 | -14.8 | -11.6 |
| Profit after financial items | -25.4 | 4.0 | -0.4 |
*) Net financial items are not allocated to business segments
Group development by business segment
| Net sales, MEUR | 1-12/2012 | 1-6/2012 | 1-6/2013 |
|---|---|---|---|
| Foundry division | 367.2 | 214.6 | 180.9 |
| Machine shop division | 117.1 | 64.7 | 58.6 |
| Aluminium division | 73.4 | 39.1 | 35.8 |
| Other business | 144.7 | 77.8 | 74.5 |
| Internal items | -157.6 | -89.5 | -81.7 |
| Componenta total | 544.8 | 306.8 | 268.0 |
| Operating profit, MEUR | 1-12/2012 | 1-6/2012 | 1-6/2013 |
| --- | --- | --- | --- |
| Foundry division | -2.9 | 10.5 | 7.5 |
| Machine shop division | 2.3 | 1.8 | 0.9 |
| Aluminium division | 9.2 | 6.0 | 4.2 |
| Other business | 0.3 | 0.6 | 0.4 |
| One-time items | -6.0 | -0.2 | -1.1*) |
| Internal items | 1.1 | 0.2 | -0.7 |
| Componenta total | 4.0 | 18.8 | 11.3 |
*) One-time items in 2013 mainly relate to Orhangazi Foundry in Turkey, EUR 0.4 million, structural changes and adaptation measures in Wirsbo, EUR -0.2 million, legal dispute and compensation for damages in Holland, EUR -0.2 million, and to the shut down of the bigger production line in Pietar-saari Foundry, EUR -0.2 million. Other one-time items were EUR -0.1 million.
| Order book, MEUR | 12/2012 | 6/2012 | 6/2013 |
|---|---|---|---|
| Foundry division | 55.6 | 59.7 | 54.6 |
| Machine shop division | 18.7 | 22.0 | 24.3 |
| Aluminium division | 12.1 | 13.2 | 14.1 |
| Other business | 17.8 | 21.0 | 25.6 |
| Internal items | -21.4 | -16.1 | -24.0 |
| Componenta total | 82.9 | 99.9 | 94.7 |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Group development by quarter
| MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 |
|---|---|---|---|---|---|---|
| Net sales | 150.4 | 156.4 | 120.7 | 117.3 | 127.7 | 140.3 |
| Operating profit | 10.1 | 8.7 | -5.6 | -9.2 | 3.3 | 8.0 |
| Net financial items *) | -7.4 | -7.4 | -7.0 | -7.7 | -6.0 | -5.7 |
| Profit after financial items | 2.7 | 1.3 | -12.5 | -16.9 | -2.7 | 2.3 |
*) Net financial items are not allocated to business segments
Quarterly development by business segment
| Net sales, MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 |
|---|---|---|---|---|---|---|
| Foundry division | 106.3 | 108.3 | 77.9 | 74.7 | 85.0 | 95.9 |
| Machine shop division | 32.2 | 32.6 | 27.1 | 25.2 | 27.7 | 30.9 |
| Aluminium division | 19.8 | 19.3 | 17.4 | 16.9 | 17.1 | 18.7 |
| Other business | 37.5 | 40.3 | 32.8 | 34.1 | 35.5 | 38.9 |
| Internal items | -45.4 | -44.1 | -34.5 | -33.6 | -37.6 | -44.1 |
| Componenta total | 150.4 | 156.4 | 120.7 | 117.3 | 127.7 | 140.3 |
| Operating profit, MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 |
| --- | --- | --- | --- | --- | --- | --- |
| Foundry division | 5.6 | 4.9 | -9.0 | -4.3 | 2.6 | 5.0 |
| Machine shop division | 1.0 | 0.8 | 1.4 | -0.8 | 0.0 | 0.9 |
| Aluminium division | 3.4 | 2.6 | 1.8 | 1.4 | 2.0 | 2.3 |
| Other business | 0.2 | 0.4 | -0.3 | 0.0 | -0.4 | 0.8 |
| One-time items | -0.1 | -0.2 | -0.1 | -5.7 | -0.5 *) | -0.6 *) |
| Internal items | 0.0 | 0.1 | 0.6 | 0.2 | -0.3 | -0.3 |
| Componenta total | 10.1 | 8.7 | -5.6 | -9.2 | 3.3 | 8.0 |
*) One-time items in 2013 mainly relate to Orhangazi Foundry in Turkey, EUR 0.4 million, structural changes and adaptation measures in Wirsbo, EUR -0.2 million, legal dispute and compensation for damages in Holland, EUR -0.2 million, and to the shut down of the bigger production line in Pietar-saari Foundry, EUR -0.2 million. Other one-time items were EUR -0.1 million.
| Order book at period end, MEUR | Q1/12 | Q2/12 | Q3/12 | Q4/12 | Q1/13 *) | Q2/13 |
|---|---|---|---|---|---|---|
| Foundry division | 68.9 | 59.7 | 56.4 | 55.6 | 58.7 | 54.6 |
| Machine shop division | 20.1 | 22.0 | 18.9 | 18.7 | 20.4 | 24.3 |
| Aluminium division | 14.3 | 13.2 | 11.4 | 12.1 | 12.4 | 14.1 |
| Other business | 22.7 | 21.0 | 18.9 | 17.8 | 21.6 | 25.6 |
| Internal items | -20.1 | -16.1 | -19.0 | -21.4 | -24.1 | -24.0 |
| Componenta total | 105.9 | 99.9 | 86.7 | 82.9 | 89.1 | 94.7 |
*) Order book on 2 April 2013
Business segments
| MEUR | 30.6.2013 | 30.6.2012 | 31.12.2012 |
|---|---|---|---|
| Foundry division | |||
| Assets | 254.5 | 222.9 | 231.5 |
| Liabilities | 82.5 | 73.4 | 54.7 |
| Investments in non-current assets (incl. finance leases) | 2.0 | 4.5 | 8.0 |
| Depreciation, amortization and write-downs | 4.6 | 4.9 | 10.2 |
| Machine shop division | |||
| Assets | 61.6 | 56.1 | 54.3 |
| Liabilities | 28.7 | 26.7 | 21.7 |
| Investments in non-current assets (incl. finance leases) | 2.5 | 2.2 | 5.0 |
| Depreciation, amortization and write-downs | 1.4 | 1.4 | 3.9 |
| Aluminium division | |||
| Assets | 72.3 | 63.0 | 70.0 |
| Liabilities | 18.8 | 16.7 | 17.0 |
| Investments in non-current assets (incl. finance leases) | 1.1 | 2.0 | 3.5 |
| Depreciation, amortization and write-downs | 1.2 | 0.3 | 1.3 |
| Other business | |||
| Assets | 90.0 | 80.1 | 85.9 |
| Liabilities | 49.3 | 39.5 | 44.0 |
| Investments in non-current assets (incl. finance leases) | 2.3 | 1.0 | 2.2 |
| Depreciation, amortization and write-downs | 1.9 | 1.9 | 2.6 |
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Fair values of derivative instruments
| MEUR | Fair value, positive | Fair value, negative | Fair value, net | Fair value, net | Fair value, net |
|---|---|---|---|---|---|
| Currency derivatives | |||||
| Foreign exchange forwards | 0.0 | 0.0 | 0.0 | 0.2 | 0.0 |
| Currency swaps | 1.2 | -1.3 | -0.1 | 0.0 | -0.4 |
| Foreign exchange options | - | - | - | -0.2 | 0.0 |
| Interest rate derivatives | |||||
| Interest rate swaps | 0.0 | -0.4 | -0.4 | -1.3 | -1.0 |
| Commodity derivatives | |||||
| Electricity price forwards | 0.0 | -1.2 | -1.2 | -1.3 | -0.9 |
| Total | 1.2 | -2.9 | -1.7 | -2.6 | -2.3 |
Nominal values of derivative instruments
| MEUR | 30.6.2013
Nominal value | 30.6.2012
Nominal value | 31.12.2012
Nominal value |
| --- | --- | --- | --- |
| Currency derivatives *) | | | |
| Foreign exchange forwards | 1.3 | 14.7 | 11.1 |
| Currency swaps | 116.5 | 74.6 | 89.0 |
| Foreign exchange options | - | 6.2 | 2.9 |
| Interest rate derivatives | | | |
| Interest rate swaps | | | |
| Maturity in less than a year | 35.0 | 12.5 | 35.0 |
| Maturity after one year and less than five years | 5.0 | 40.0 | 17.5 |
| Commodity derivatives | | | |
| Electricity price forwards | | | |
| Maturity in less than a year | 1.6 | 2.4 | 3.1 |
| Maturity after one year and less than five years | 5.3 | 8.3 | 4.2 |
| Total | 164.6 | 158.6 | 162.8 |
*) Currency derivatives mature in less than a year.
16
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Classification of fair value of financial assets and liabilities
Financial assets and liabilities that are valued at fair value are classified on three levels, depending on the estimated reliability of the valuation method:
LEVEL 1:
A reliable quoted market price exists for identical instruments quoted on an active market. Electricity price forwards are classified on this level, as their valuations are based on market prices for Nord Pool's similar standardized products.
LEVEL 2:
A market price quoted on the active market exists for similar but not identical instruments. The price may, however, be derived from observable market information. The fair values of interest rate and currency derivatives are calculated by deriving them from price information obtained on the active market and using valuation techniques that are commonly applied in the market.
LEVEL 3:
There is no active market for the instrument, a fair market price cannot be reliably derived, and defining the fair value requires significant assumptions.
Fair values by classification of valuation method Q2 / 2013
| MEUR | LEVEL 1 | LEVEL 2 | LEVEL 3 |
|---|---|---|---|
| Foreign exchange rate derivatives (OTC) | - | -0.1 | - |
| Interest rate derivatives (OTC) | - | -0.4 | - |
| Commodity derivatives | -1.2 | - | - |
| Available-for-sale investments | - | - | 0.9 |
Fair values by classification of valuation method Q4 / 2012
| MEUR | LEVEL 1 | LEVEL 2 | LEVEL 3 |
|---|---|---|---|
| Foreign exchange rate derivatives (OTC) | - | -0.4 | - |
| Interest rate derivatives (OTC) | - | -1.0 | - |
| Commodity derivatives | -0.9 | - | - |
| Available-for-sale investments | - | - | 0.9 |
No financial assets or liabilities were transferred from one level to another during the financial year.
The fair value of forward rate agreements is the profit or loss that would occur from closing the agreement, calculated at the market price on the balance sheet date. The fair value of interest rate and currency options is measured using commonly known option pricing models. The fair value of interest rate swaps is calculated by discounting future cash flows at current interest rates at the balance sheet date. Foreign exchange forwards and swaps are valued at forward prices on the balance sheet date. The fair value of electricity price forwards is the estimated profit or loss that would derive from closing the contracts at market prices on the balance sheet date.
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Contingent liabilities
| MEUR | 30.6.2013 | 30.6.2012 | 31.12.2012 |
|---|---|---|---|
| Real-estate mortgages | |||
| For own debts | 11.7 | 10.2 | 11.8 |
| Business mortgages | |||
| For own debts | 103.6 | 100.0 | 103.7 |
| Pledges | |||
| For own debts | 404.5 | 413.9 | 404.4 |
| Other leasing commitments | 6.6 | 4.5 | 3.8 |
| Other commitments | 1.5 | 4.2 | 5.5 |
| Total | 527.8 | 532.9 | 529.0 |
Key exchange rates for the Euro
| One Euro is | Closing rate | Average rate | ||
|---|---|---|---|---|
| 30.6.2013 | 31.12.2012 | 30.6.2013 | 31.12.2012 | |
| SEK | 8.7773 | 8.5820 | 8.5311 | 8.7041 |
| USD | 1.3080 | 1.3194 | 1.3134 | 1.2848 |
| GBP | 0.8572 | 0.8161 | 0.8508 | 0.8109 |
| TRY (Turkish central bank) | 2.5137 | 2.3517 | 2.3773 | 2.3058 |
Calculation of key financial ratios
| Return on equity, % (ROE) * | = Profit after financial items – income taxes x 100
Shareholders' equity without preferred capital notes + non-controlling interest (quarterly average) |
| --- | --- |
| Return on investment, % (ROI)* | = Profit after financial items + interest and other financial expenses x 100
Shareholders' equity + interest bearing liabilities (quarterly average) |
| Equity ratio, % | = Shareholders' equity, preferred capital notes excluded + non-controlling interest x 100
Balance sheet total - advances received |
| Earnings per share, EUR (EPS) | = Profit after financial items – income taxes +/- non-controlling interest – deferred and paid interest on hybrid loan
Average number of shares during the financial period |
| Earnings per share with dilution, EUR | = As above, the number of shares has been increased with the 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 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 share, EUR (CEPS) | = Net cash flow from operating activities
Average number of shares during the financial period |
| Equity per share, EUR | = Shareholders' equity, preferred capital notes excluded
Number of shares at period end |
| Net interest bearing debt, MEUR | = Interest bearing liabilities + preferred capital notes – cash and bank accounts |
| Net gearing, % | = Net interest bearing liabilities x 100
Shareholders' equity, preferred capital notes excluded + non-controlling interest |
*) The profit for the first half of the year in ROE and ROI has been calculated as an average annual return (annualised).
18
Q2 | 1 JANUARY - 30 JUNE 2013 / COMPONENTA INTERIM REPORT
Largest registered shareholders on 30 June 2013
| Shareholder | Shares | Share of total voting rights, % |
|---|---|---|
| 1 Lehtonen Heikki | 6,253,840 | 28.13 |
| Cabana Trade S.A. | 3,501,988 | |
| Oy Höggfors–Trading Ab | 2,736,052 | |
| Lehtonen Heikki | 15,800 | |
| 2 Etra Capital Oy | 5,250,000 | 23.62 |
| 3 Varma Mutual Pension Insurance Company | 1,447,718 | 6.51 |
| 4 Finnish Industry Investment Ltd | 1,416,666 | 6.37 |
| 5 Mandatum Life | 770,000 | 3.46 |
| 6 Alfred Berg Finland Fund | 411,574 | 1.85 |
| 7 Nordea Life Assurance Finland Ltd | 400,000 | 1.80 |
| 8 Alfred Berg Small Cap Finland Fund | 303,000 | 1.36 |
| 9 Bergholm Heikki | 300,016 | 1.35 |
| 10 Laine Mika | 205,000 | 0.92 |
| Nominee–registered shares | 286,658 | 1.29 |
| Other shareholders | 5,186,701 | 23.33 |
| Total | 22,231,173 | 100.00 |
The members of the Board of Directors own 28.9% of the shares. All shares have equal voting rights.
Helsinki 16 July 2013
COMPONENTA CORPORATION
Board of Directors
19
IR Calendar 2013
11 February Preliminary information on Q4 and full year 2012
28 February Financial Statements Bulletin 2012
22 March Annual General Meeting
24 April Interim Report 1 January – 31 March 2013
16 July Interim Report 1 January – 30 June 2013
21 October Interim Report 1 January – 30 September 2013
Componenta Corporation
Panuntie 4
FI-00610 Helsinki
Finland
Tel. +358 10 403 00
Fax +358 10 403 2721