Componenta Oyj — Interim / Quarterly Report 2015

Oct 26, 2015

Q3 INTERIM REPORT January - September 2015

Order book increased, net sales unchanged, operating profit fell from previous year

January - September 2015 in brief

• The Group's order book at the beginning of October was 4% higher than in the previous year standing at MEUR 82 (MEUR 79).
• Net sales in the review period were at a similar level as in the previous year standing at MEUR 376 (MEUR 376).
• EBITDA excluding one-time items and exchange rate differences of balance sheet items declined from the previous year to MEUR 23.7 (MEUR 30.3). The impact of the Turkish lira and high local wage inflation was MEUR -5, of the strikes in Turkey MEUR -2, and of the operational difficulties in Främmestad MEUR -2. In addition, the loss from the Dutch operations increased some MEUR -1 from the previous year. The efficiency improvement program had a positive impact of MEUR 3 on EBITDA.
• Operating profit excluding one-time items and exchange rate differences of balance sheet items ("operating profit on business operations") declined from the previous year to MEUR 10.2 (MEUR 16.6).
• The result after financial items excluding one-time items and exchange rate differences of operative balance sheet items was MEUR -7.8 (MEUR -4.7). The result after financial items excluding one-time items was MEUR -4.7 (MEUR -6.3).
• One-time items and exchange rate differences of operative balance sheet items that had an impact on the result after financial items for the review period totalled MEUR 0.7 (MEUR -8.7).
• The net result for the period was MEUR -9.1 (MEUR -11.3) and basic earnings per share were EUR -0.10 (EUR -0.42).
• New contracts received during the review period totalled MEUR 62.
• Componenta confirms the guidance given on 19 October 2015.

July - September 2015 in brief

• Net sales were at a similar level as in the previous year standing at MEUR 110 (MEUR 111).
• EBITDA excluding one-time items and exchange rate differences of balance sheet items declined from the previous year to MEUR 4.8 (MEUR 5.6).
• Operating profit excluding one-time items and exchange rate differences of balance sheet items was MEUR 0.5 (MEUR 1.3).
• The result after financial items excluding one-time items and exchange rate differences of operative balance sheet items was MEUR -6.0 (MEUR -5.5). The result after financial items excluding one-time items was MEUR -4.9 (MEUR -6.2).
• One-time items and exchange rate differences of operative balance sheet items that had an impact on the result for the July - September period totalled MEUR 0.2 (MEUR -5.3).
• The net result for the July September period was MEUR -7.5 (MEUR -9.2) and basic earnings per share were EUR -0.08 (EUR -0.21).

Componenta's guidance for 2015 (announced by stock exchange release on 19 October 2015)

The prospects for Componenta in 2015 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta's order intake and order book.

Componenta's order book at the beginning of October stood at MEUR 82 (MEUR 79). Componenta's operating profit excluding one-time items and exchange rate differences of operative balance sheet items is expected to stay behind previous year. However, Componenta expects the 2015 result after financial items excluding one-time items to improve from previous year.

President and CEO Heikki Lehtonen comments on the review period and events after the end of period:

"Componenta's performance in the third quarter of 2015 review period was weaker than expected. However, the order book increased 4% from the previous year to EUR 82 million. Net sales were on a similar level as in the previous year but operating profit excluding one-time items and exchange rate differences of operative balance sheet items fell from the previous year. The problems in operations continued during the summer, especially in the Foundry Division and at the Främmestad machine shop. Remedial measures are currently being carried out at both and due to them we expect the situation to improve during the final quarter.

Construction of Componenta's new aluminium foundry in Manisa, Turkey, has made progress on schedule and according to plan. Construction work is expected to be finished by the end of the year, and after that we will be able to start installing machinery and equipment. Production is expected to begin at the new aluminium foundry during the latter part of spring 2016 and the whole production is expected to be transferred to the new factory at the beginning of year 2017.

Preparations to combine Componenta's and Ferromatrix's production of large furan cast components have also progressed according to plan. Products of Componenta's furan line in Heerlen will be transferred to Ferromatrix's Kortrijk foundry in Belgium by the end of this year, when the furan line in Heerlen will be closed

down. Cooperation on sales and customers for furan castings will begin at the beginning of 2016.

In addition, we are continuing the measures planned to consolidate operations in the Netherlands. As from 1 November 2015 the Group's current CFO Mika Hassinen will focus full-time on carrying out these strategically important projects and on leading the units in the Netherlands and the cooperation with Ferromatrix. Progress has been made as announced previously on the planned closure of the Heerlen furan production line and in consequence of this the transfer of the green sand casting line in Weert to Heerlen and the closure of the Weert foundry by the end of 2016. After these measures all Componenta's operations in the Netherlands will be consolidated in Heerlen.

Componenta's group-wide efficiency improvement program, with its development projects and measures, has not in every respect made progress in accordance with plans during the review period. However, corrective measures have been started and the targeted cost savings will be reached during the year 2016. The efficiency improvement program has the target, by increasing productivity, to improve the company's competitiveness and its profitability, including the changes being made in the Netherlands, by altogether EUR 50 million. Savings corresponding to EUR 35 million of this program have already been achieved and it is estimated that the remainder will be finalized by the end of 2016."

Key figures	Q1-Q3 2015	Q1-Q3 2014	Change	2014	Rolling 12 mth
Order book, MEUR	82.1	79.1	4%	88.9	82.1
Net sales, MEUR	376	376	0%	495	495
EBITDA*), MEUR	23.7	30.3	-22%	35.8	29.1
Operating profit*), MEUR	10.2	16.6	-38%	17.8	11.4
Operating profit*),%	2.7	4.4	-38%	3.6	2.3
Result after financial items*), MEUR	-7.8	-4.7	66%	-9.5	-12.6
Result after financial items excluding one-time items, MEUR	-4.7	-6.3	-26%	-12.2	-10.6
One-time items and exchange rate differences of operative
balance sheet items, MEUR	0.7	-8.7	n/m	-19.2	-9.9
Taxes, MEUR	-2.0	2.0	n/m	0.2	-3.9
Net result for the review period, MEUR	-9.1	-11.3	-19%	-28.6	-26.4
Earnings per share, EUR	-0.10	-0.42	-76%	-0.63	-0.28
Net gearing, %	226	154	47%	194	196
Return on investment*), %	4.1	7.0	-41%	5,6	3.5
Return on equity*), %	-14.1	-6.5	117%	-12.1	-17.8
Number of personnel at period end, incl. leased personnel	4,286	4,440	-3%	4,238	4,286

*) Excluding one-time items and exchange rate differences of operative balance sheet items

Press conference for analysts, investors and media representatives at 10.30 am on 26 October 2015

Componenta is holding a press conference for analysts, investors and media representatives at 10.30 am on 26 October 2015 in the Satotalo auditorium in Käpylä, at Panuntie 4, 00610 Helsinki. The event can also be watched in a direct webcast on the internet. The link to the webcast is given on Componenta's website at www.componenta.com.

Componenta's Interim Report 1 January - 30 September 2015 Order book increased, net sales unchanged, operating profit fell from previous year

Developments in business environment and order book

Economic indicators for the USA have taken a more negative turn recently in consequence of the strengthening of the dollar. As the euro has weakened against other currencies, the EU's economic indicators have taken a more positive turn especially in export oriented countries. In addition, the financial market operations begun by the European Central Bank in the spring and continuing during the summer and autumn have created additional liquidity for the financial market, which is expected to have a positive impact on the European economy. However, weakened economic growth in China has had negative impact on raw material prices which further has weakened the investment demand particularly in construction and mining machinery industry.

Componenta's order book at the beginning of October was 4% higher than in the previous year standing at EUR 82 (79) million. The order book comprises confirmed orders for the next two months. Growth in market share has had a positive impact on the order book.

New contracts obtained by Componenta in the review period had a value of EUR 62 million. These new contracts refer to sales of components that will contribute annually an average of EUR 62 million to sales during the next five years. They will mainly start to have a visible impact from 2016 onwards.

The order book for the Componenta's heavy trucks customer sector improved 8% from the corresponding period in the previous year. Market conditions in the heavy trucks customer sector have improved during the first nine months of the year.

The order book for the construction and mining customer sector declined 8% from the previous year. Componenta's full year sales to construction and mining sector customers are expected to decline, but less than the overall market thanks to the impact of new products.

The order book for the machine building customer sector increased 1% from the previous year. The growth achieved by new products had an impact on this improvement.

The order book for Componenta's agricultural machinery customer sector declined 8% from the corresponding period in the previous year due to the weak market conditions that continue in the sector.

The order book for the automotive customer sector increased 19% from the previous year. Componenta's order book improved from the previous year because of higher market demand and new contracts. The rise in euro-denominated aluminium prices also affected the order book.

Net sales

Componenta's net sales in the January - September period was at a similar level as in the previous year, at EUR 376 (376) million. The Group's capacity utilization rate in the period was 59% (58%).

Componenta's net sales in the review period by customer sector were as follows: heavy trucks 30% (32%), construction and mining 18% (19%), machine building 21% (19%), agricultural machinery 13% (15%) and automotive 18% (15%).

Result

Componenta's EBITDA for the January - September period excluding one-time items and exchange rate differences of balance sheet items declined from the previous year to EUR 23.7 (30.3) million. EBITDA was strongly affected by the Turkish lira and high wage inflation EUR -5 million, the strikes in Turkish automotive industry in the second quarter EUR -2 million and the problems arising from the change of the ERM system at the Främmestad machine shop EUR -2 million. In addition, the losses in the operations in the Netherlands increased from the previous year by approximately EUR -1 million. The efficiency improvement program had a positive impact of EUR 3 million on EBITDA.

The consolidated operating profit in the period excluding one-time items and exchange rate differences of balance sheet items declined from the previous year to EUR 10.2 (16.6) million. The operating profit after these items was EUR 10.9 (11.2) million.

The Group's net financial costs in the review period, excluding onetime costs, totalled EUR -18.0 (-21.3) million. These costs declined from the corresponding period in the previous year in consequence of the refinancing carried out in the autumn of 2014.

The Group's result for the period after financial items, excluding one-time items and exchange rate differences of operative balance sheet items, was EUR -7.8 (-4.7) million and after these items EUR -7.1 (-13.3) million. The Group's result for the review period after financial items excluding one-time items was EUR -4.7 (-6.3) million.

The analysis of changes in the income statement excluding one-time items and exchange rate differences of balance sheet items for the review period compared to the corresponding period in the previous year is as follows:

MEUR	Q3/15	Q3/14	Change %	Q1-Q3/15	Q1-Q3/14	Change%
Net sales	110.5	111.0	-1%	375.6	375.6	0%
Value of production	107.0	113.8	-6%	374.2	387.3	-3%
Materials and external services	-48.1	-50.8	-5%	-170.8	-169.5	1%
Direct wages and leased personnel	-20.0	-20.4	-2%	-67.8	-68.7	-1%
Other variable and fixed costs	-34.1	-36.9	-8%	-111.9	-118.9	-6%
Total costs	-102.2	-108.1	-6%	-350.5	-357.0	-2%
EBITDA*)	4.8	5.6	-15%	23.7	30.3	-22%

*) Excluding one-time items and exchange rate differences of operative balance sheet items

One-time items in the review period totalled EUR -2.4 (-7.0) million. These mainly relate to the costs for closing down the Smedjebacken forge EUR -1.1 million, the restructuring costs for the Orhangazi unit EUR -0.5 million, to the costs for transferring production from the Pietarsaari foundry to the Pori foundry EUR -0.4 million, and to other one-time costs totalling EUR -0.4 million.

Exchange rate differences of operative balance sheet items in the review period totalled EUR 3.1 (-1.6) million and resulted mainly from differences of balance sheet items denominated in Turkish liras and Swedish kronor.

Income taxes for the review period were EUR -2.0 (+2.0) million. The figure for the period includes reverse of earlier booked tax increase of EUR +1.4 million in Turkey as a one-time tax income. In addition, the tax expenses in Turkey increased by the rise in deferred tax expenses of EUR -1.9 million due to weakening of the Turkish lira.

The result for the period was EUR -9.1 (-11.3) million and the earnings per share were EUR -0.10 (-0.42).

The return on investment excluding one-time items and exchange rate differences of operative balance sheet items was 4.1% (7.0%) and after these items 4.4% (4.8%).

Return on equity excluding one-time items and exchange rate differences of operative balance sheet items was -14.1% (-6.5%) and after these items -11.3% (-15.9%).

Balance sheet, financing and cash flow

At the end of September, Componenta's cash funds, bank receivables and binding credit facilities totalled EUR 15.8 (14.0) million. The binding credit facilities include the loan agreement signed in June in full, even though the investment loan is being taken in stages as the investment is carried out. The Group's interest-bearing net debt totalled EUR 226 (199) million at the end of the period. The company's net debt as a proportion of shareholders' equity was 226% (154%). At the end of September the Group's equity ratio was 21.1% (26.7%).

Net cash flow from operations in the period was EUR 11.0 (-11.1) million, and changes in working capital accounted for EUR 7.6 (-12.1) million of this. Componenta makes more efficient use of capital with a program to sell its trade receivables. Under this arrangement some of the trade receivables are sold without any right of recourse. The volume of trade receivables sold by the end of September totalled EUR 86.1 (83.6) million.

Investments

Investments in production facilities in the review period totalled EUR18.7 (14.6) million, and financial lease investments accounted for EUR3.8 (3.5) million of these. The net cash flow from

investments was EUR-17.3 (-8.3) million, which includes the cash flow from the Group's investments in tangible and intangible assets, the cash flow from shares sold and purchased and from the sale of fixed assets.

Strategic projects

In 2015 Componenta's strategic projects and the measures they involve focus on improving productivity and cost-efficiency and raising efficiency in operations and operating methods. The objectives of the projects are to safeguard the Group's competitive standing, develop closer cooperation with customers and increase sales.

Efficiency improvement program

Componenta's group-wide efficiency improvement program has the target of improving the company's competitive standing and profitability from its level in 2012 by EUR 45 million by the end of 2016 including the new measures to achieve savings in the Netherlands and Turkey. Overall the program has made good progress, even though the savings targets for the second and third quarters were only partially achieved. EUR 35 million of the targeted savings have already been achieved. The remaining cost saving measures will be finalized during the latter part of 2015 and in 2016. The cost savings through the mentioned measures are estimated to realize so that EUR 11 million of them are expected to come true during 2016 and EUR 7 million in 2017.

During the review period Componenta completed its investigation begun in December 2014 into the closure of 2-3 production lines, with the aim of further improving the capacity usage and competitiveness of the production lines and reducing fixed costs. As a result of this investigation, the two small DISA foundry lines at the Orhangazi foundry in Turkey are being replaced by the efficient, modernized DISA line transferred from the Pietarsaari foundry that was closed down. It is estimated that these measures will give altogether cost savings of EUR 1 million. Production on the Furan line at the Heerlen foundry is being transferred to the Ferromatrix NV foundry in Belgium and as a result the Furan casting line operating in Heerlen will be closed down at the end of 2015. Componenta is starting cooperation on the production and sale of Furan castings with Ferromatrix and its owner Van de Wiele NV. In addition, it is planned to transfer the green sand line from the Weert foundry in the Netherlands to the Heerlen foundry and to close down the Weert foundry by the end of 2016. In consequence of these strategic measures, Componenta is concentrating all its operations in the Netherlands in Heerlen. It is estimated that these measures in the Netherlands will altogether give annual savings of EUR 6 million by 2017. The one-time items related to the before mentioned measures are estimated to be approximately EUR 8 million and the write-offs in the balance sheet assets approximately of EUR 3 million. Most of these will be booked in the 2015 financial statements as one-time items.

Developing the quality and service culture and utilising product development projects

The objective of the development measures is to enable Componenta to fulfil customer expectations relating to quality and delivery times even better by renewing quality assurance processes and management practices. The results - even better customer service, greater customer satisfaction, new customers and products and considerably lower quality costs – should become visible during 2016-2017.

The objective of product development projects is to create competitive solutions and ensure that project targets are met on schedule. To achieve this Componenta has increased the number of engineers and significantly strengthened their knowhow and skills, and has also upgraded its engineering and product development systems and software. Through its product development projects Componenta is creating considerable added value for customers and strengthening the company's competitiveness. Taking full advantage of these projects has enabled Componenta to sign major new contracts.

EUR 100 million organic growth program

In the organic growth program, which has the goal of an EUR 100 million increase in net sales, new orders with a value of EUR 106 million, which include also the changes in market demand and sales erosion, have been confirmed by now. These new orders will partly have an impact on the Group's net sales even in 2015 and mainly in 2016 and 2017.

Performance of business segments

Foundry Division

The production units in the Foundry Division are located in Orhangazi in Turkey, in Heerlen and Weert in the Netherlands, and in Iisalmi, Karkkila and Pori in Finland.

At the beginning of October the order book for the Foundry Division was 8% higher than at the same time in the previous year, standing at EUR 45.8 (42.3) million. The order book comprises orders confirmed to customers for the next two months. 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 Foundry Division had net sales in the July - September period of EUR 65.9 (70.9) million. The July - September operating profit excluding one-time items and exchange rate differences of balance sheet items was EUR -3.1 million, or -4.7% of net sales (EUR -1.0 million; -1.5%).

Net sales for the Foundry Division in the January - September period declined 6% from the corresponding period in the previous year to EUR 224 (239) million. The operating profit in the period

excluding one-time items and exchange rate differences of balance sheet items was EUR 0.5 million, or 0.2% of net sales (EUR 6.5 million; 2.7%). The operating profit declined from the previous year due to lower volumes, the strikes in Turkey EUR -1.5 million, the Turkish lira and high wage inflation EUR -3.5 million, increased losses in the Dutch foundries EUR -1 million, and the reflection effect on the Foundry Division from the problems following the unsuccessful introduction of the new ERM system at the Främmestad machine shop EUR -0.5 million. The efficiency improvement program had a positive impact of EUR 3 million.

The number of personnel in the Foundry Division during the review period including leased employees was on average 9% less than in the corresponding period in the previous year, standing at 2,534 (2,799).

Machine Shop Division

The production units in the Machine Shop Division are located in Orhangazi in Turkey and in Främmestad in Sweden. The production unit for pistons in Pietarsaari, Finland also belongs to the division.

At the beginning of October the order book for the Machine Shop Division was 10% higher than at the same time in the previous year, standing at EUR 21.0 (19.0) million. The order book comprises confirmed orders for the next two months. 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.

The Machine Shop Division had net sales in the July - September period of EUR 26.8 (26.8) million. The July - September operating profit excluding one-time items and exchange rate differences of balance sheet items was EUR 0.6 million, or 2.4% of net sales (EUR 0.8 million; 2.9%).

Net sales for the Machine Shop Division in the January - September period increased 4% from the corresponding period in the previous year to EUR 93.9 (90.3) million. The operating profit in the period excluding one-time items and exchange rate differences of balance sheet items was EUR 1.7 million, or 1.8% of net sales (EUR 3.5 million; 3.9%). The problems at the Främmestad machine shop, which derive from the unsuccessful introduction of the new ERM system, had a negative impact of EUR -2 million on the operating profit.

The number of personnel in the Machine Shop Division during the review period including leased employees was on average 11% higher than in the corresponding period in the previous year, standing at 433 (391).

Aluminium Division

The production units in the Aluminium Division are located in Manisa, Turkey and comprise the aluminium foundry and the production unit for aluminium wheels.

At the beginning of October the order book for the Aluminium Division was 15% higher than at the same time in the previous year, standing at EUR 16.5 (14.4) million. The order book comprises confirmed orders for the next two months. The order book for the Aluminium Division comprises orders from the automotive and heavy truck industries. The increase in the order book also includes the increase in the order book due to the higher price of aluminium.

The Aluminium Division had net sales in the July - September period of EUR 22.8 (20.7) million. The July - September operating profit excluding one-time items and exchange rate differences of balance sheet items was EUR 3.1 million, or 13.6% of net sales (EUR 1.8 million; 8.6%).

Net sales for the Aluminium Division in the January - September period increased 20% from the corresponding period in the previous year to EUR 70.2 (58.5) million. The operating profit in the period excluding one-time items and exchange rate differences of balance sheet items was EUR 8.0 million, or 11.4% of net sales (EUR 6.4 million; 11.0%). The operating profit improved from the

previous year due to higher volumes and the raising of prices, but it had a negative impact due to the Turkish lira and high wage inflation EUR -1.5 million and the strikes in the Turkish automotive industry EUR -0.5 million.

The number of personnel in the Aluminium Division during the review period including leased employees was on average 8% higher than in the corresponding period in the previous year, standing at 893 (825).

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 profit excluding one-time items and exchange rate differences of balance sheet items in January - September of EUR -0.2 (0.3) million.

Personnel

The Group had on average 4,278 (4,479) employees during the review period, including 303 (337) leased employees. The number of Group personnel at the end of the period was 4,286 (4,440), which includes 284 (335) leased employees.

At the end of September 62% (61%) of personnel were in Turkey, 15% (16%) in Finland, 13% (13%) in the Netherlands and 10% (10%) in Sweden.

Personnel by country at the end of the review period

	30.9.2015	30.9.2014		Change 31.12.2014
Turkey	2,665	2,696	-1%	2,600
Finland	647	715	-10%	653
Netherlands	550	583	-6%	559
Sweden	424	446	-5%	426

Personnel by division at end of the review period

	30.9.2015	30.9.2014		Change 31.12.2014
Foundry division	2,519	2,717	-7%	2,557
Machine shop division	440	402	9%	410
Aluminium division	914	858	7%	831
Other business (excl. Group administration)	272	294	-7%	271
Group administration	141	169	-17%	169

Shares and share capital

The shares of Componenta Corporation are quoted on NAS-DAQ OMX Helsinki. The average price during the review period was EUR 0.84, the lowest price was EUR 0.70, and the highest EUR 1.13. The quoted price on 30 September 2015 stood at EUR 0.80 (EUR 1.25) and the share capital had a market capitalization of EUR 77.8 (121.6) million. The volume of shares traded during the period was equivalent to 9.8% (10.3%) of the share stock.

At the end of September Componenta's share capital stood at EUR 21.9 (21.9) million and the company had a total of 97,269,224 (97,269,224) shares. The company had 2,591 (2,429) shareholders.

Changes in management

Componenta announced the names of the new members of the company's Nomination Board on 25 September 2015. The members of the Nomination Board are Erkki Etola representing Etra Capital Oy, Reima Rytsölä representing Varma Mutual Pension Insurance Company, and Heikki Lehtonen representing the companies he controls Oy Högfors-Trading Ab and Cabana Trade SA. Harri Suutari, chairman of Componenta's Board of Directors serves as expert member of the Nomination Board.

Componenta strengthened the management of the strategic projects underway in the Netherlands by appointing current Group CFO Mika Hassinen to head up the joint venture being set up with Ferromatrix NV and the consolidation of Componenta's units in the Netherlands. He continues as managing director of Componenta BV, as deputy to the CEO of Componenta Corporation and as a member of the Corporate Executive Team. Henri Berg was appointed Componenta Group CFO and a member of the Corporate Executive Team. The changes take effect as from 1 November 2015.

Risks and business uncertainties

The most significant risks for Componenta's business operations 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 management of financial risks is given in the 2014 financial statements.

Refinancing and liquidity risks

The Group aims to ensure the availability of financing by spreading the repayment schedules, sources of funding and financial instruments in the loan portfolio. The proportion of one source of funding may not exceed a limit set in the Group Treasury Policy. The most important sources of finance used in the Group are the club loan from Turkish banks, trade receivables financing without recourse, the syndicated credit facility, other bilateral shortterm and long-term loan agreements with Turkish banks, lease financing, bonds, pension loans and capital notes.

Componenta will finance the repayment instalments on loans falling due in 2015 partly with cash-flow financing and partly with new long-term loans. Componenta is planning to refinance the remaining instalments falling due in 2015 on loans from Turkish banks with new bilateral or similar long-term loans from Turkish banks.

Currency risk

During 2014 Componenta's Board of Directors changed the hedging policy for the transaction position for Componenta's currency denominated income and expense items in Turkey. Under the new policy the level of hedging for the Turkish lira may be in the range 0 - 100 per cent at the discretion of the President and CEO. Under the old policy the level of hedging for the Turkish lira could be in the range 70-130 per cent at the discretion of the President and CEO. In the opinion of the company the Turkish lira will in the long term weaken against the euro and other main currencies due to the big difference in inflation rates. In addition, leaving the Turkish open currency position unhedged aimed to eliminate cash flow based payments when the hedging period ended.

More detailed information about the risks to which Componenta is exposed and risk management is given in the notes to the 2014 financial statements.

Events after end of period

After the end of the review period Componenta changed its prospects for the full year 2015. The change was announced by the stock exchange release on 19 October 2015.

Business environment

The order book for Componenta's heavy trucks customer sector was 8% higher at the beginning of October than at the same time in the previous year. Demand in the truck industry in Europe is expected to rise in 2015. Componenta's sales to customers in the heavy truck industry are expected to stay at previous year level.

The order book for Componenta's construction and mining customer sector was 8% lower at the beginning of October than at the same time in the previous year. Weaker prospects of economic growth in China have decreased raw material prices during the past months, which has affected the investment demand in the construction and mining industry. Overall demand in construction and mining industry is expected to fall below that in the previous year. Componenta's sales to construction and mining sector customers are also expected to remain lower than in the previous year.

The order book for Componenta's machine building customer segment was 1% higher at the beginning of October than at the same

time in the previous year. Componenta's sales to the machine building industry are expected to increase slightly in 2015.

The order book for Componenta's agricultural machinery customer sector was 8% lower at the beginning of October than at the same time in the previous year. Due to weak market situation demand is expected to continue to decline in 2015. Componenta's sales to manufacturers of agricultural machinery are expected to decline from the previous year.

The order book for Componenta's automotive customer sector was 19% higher at the beginning of October than at the same time in the previous year. Demand in 2015 is estimated to improve from the previous year. Componenta's sales to the automotive industry are expected to increase from the previous year.

Componenta's guidance for 2015 (announced by the stock exchange release on 19 October 2015)

The prospects for Componenta in 2015 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta's order intake and order book.

Componenta's order book at the beginning of October stood at MEUR 82 (MEUR 79). Componenta's operating profit excluding one-time items and exchange rate differences of operative balance sheet items is expected to stay behind previous year. However, Componenta expects the 2015 result after financial items excluding one-time items to improve from previous year.

Helsinki, 26 October 2015

COMPONENTA CORPORATION Board of Directors

Basis of preparation

This unaudited interim financial statements for 30 September 2015 have been prepared in accordance with IAS 34, 'Interim financial reporting' -standard.

Componenta has applied the same accounting principles in this interim report as in the financial statements for 2014 which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. As from the start of the fiscal year, the company has also applied certain new or revised IFRS standards as described in the 2014 Financial Statements.

Related party transactions

There were no sales to associated companies during the reporting periods and purchase from the associated companies amounted to EUR 0.0 (EUR 0.4) million.

Financial risk management

The financial risks relating to Componenta Group's business operations are managed in accordance with the Group Treasury Policy approved by the Componenta Board of Directors. Applied Financial Risk management is described on more detailed level in the 2014 Financial Statements.

Reconciliation of consolidated operating profit

MEUR	1.1.-30.9.2015	1.1.-30.9.2014	1.7.-30.9.2015	1.7.-30.9.2014	1.1.-31.12.2014
Operating profit excluding one-time items and operative exchange rate differences	10.2	16.6	0.5	1.3	17.8
Operative exchange rate differences	3.1	-1.6	1.1	-0.7	-2.7
Operating profit excluding one-time items	13.3	14.9	1.6	0.6	15.1
One-time items	-2.4	-3.7	-0.8	-1.4	-12.9
Operating profit, IFRS	10.9	11.2	0.8	-0.8	2.2

Reconciliation of consolidated result after financial items

MEUR	1.1.-30.9.2015	1.1.-30.9.2014	1.7.-30.9.2015	1.7.-30.9.2014	1.1.-31.12.2014
Result after financial items excluding one-time items and operative exchange rate differences	-7.8	-4.7	-6.0	-5.5	-9.5
Operative exchange rate differences	3.1	-1.6	1.1	-0.7	-2.7
Result after financial items excluding one-time items	-4.7	-6.3	-4.9	-6.2	-12.2
One-time items	-2.4	-7.0	-0.8	-4.6	-16.5
Result after financial items, IFRS	-7.1	-13.3	-5.8	-10.8	-28.7

Consolidated income statement excluding one-time items and operative exchange rate differences

MEUR	1.1.-30.9.2015	1.1.-30.9.2014	1.7.-30.9.2015	1.7.-30.9.2014	1.1.-31.12.2014
Net sales	375.6	375.6	110.5	111.0	495.2
Other operating income	1.0	1.3	0.3	0.5	2.1
Operating expenses	-352.9	-346.5	-105.9	-105.9	-461.5
Depreciation, amortization and write-downs	-13.6	-13.8	-4.3	-4.3	-18.1
Share of the associated companies' result	0.1	0.1	0.0	0.0	0.1
Operating profit	10.2	16.6	0.5	1.3	17.8
% of net sales	2.7	4.4	0.5	1.2	3.6
Financial income and expenses	-18.0	-21.3	-6.5	-6.8	-27.3
Result after financial items	-7.8	-4.7	-6.0	-5.5	-9.5
% of net sales	-2.1	-1.2	-5.4	-4.9	-1.9
Income taxes	-3.5	0.1	-1.8	0.2	-2.3
Net profit	-11.3	-4.6	-7.8	-5.3	-11.8
Allocation of net profit for the period
To equity holders of the parent	-11.9	-5.3	-7.8	-5.4	-12.5
To non-controlling interest	0.6	0.7	0.1	0.1	0.6
	-11.3	-4.6	-7.8	-5.3	-11.8
Earnings per share calculated on the profit
attributable to equity holders of the parent
Earnings per share, EUR	-0.12	-0.23	-0.08	-0.13	-0.30

Consolidated income statement

MEUR	1.1.-30.9.2015	1.1.-30.9.2014	1.7.-30.9.2015	1.7.-30.9.2014	1.1.-31.12.2014
Net sales	375.6	375.6	110.5	111.0	495.2
Other operating income	4.2	-0.3	1.4	-0.2	-0.1
Operating expenses	-355.4	-350.3	-106.8	-107.3	-470.1
Depreciation, amortization and write-downs	-13.6	-13.9	-4.3	-4.4	-22.9
Share of the associated companies' result	0.1	0.1	0.0	0.0	0.1
Operating profit	10.9	11.2	0.8	-0.8	2.2
% of net sales	2.9	3.0	0.7	-0.7	0.4
Financial income and expenses	-18.0	-24.5	-6.5	-10.0	-30.9
Result after financial items	-7.1	-13.3	-5.8	-10.8	-28.7
% of net sales	-1.9	-3.6	-5.2	-9.8	-5.8
Income taxes	-2.0	2.0	-1.7	1.7	0.2
Net profit	-9.1	-11.3	-7.5	-9.2	-28.6
Allocation of net profit for the period
To equity holders of the parent	-9.7	-12.0	-7.6	-9.2	-29.2
To non-controlling interest	0.6	0.7	0.1	0.1	0.6
	-9.1	-11.3	-7.5	-9.2	-28.6
Earnings per share calculated on the profit
attributable to equity holders of the parent
Earnings per share, EUR	-0.10	-0.42	-0.08	-0.21	-0.63
Earnings per share with dilution, EUR	-0.10	-0.42	-0.08	-0.21	-0.63

Consolidated statement of comprehensive income

MEUR	1.1.-30.9.2015	1.1.-30.9.2014	1.7.-30.9.2015	1.7.-30.9.2014	1.1.-31.12.2014
Net profit	-9.1	-11.3	-7.5	-9.2	-28.6
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Revaluation of buildings and land areas	-	-	-	-	0.0
Items that may be reclassified subsequently to profit or loss
Translation differences	-0.1	0.1	0.4	0.1	0.4
Actuarial gains and losses	-1.7	-0.5	-0.8	-0.1	-1.0
Cash flow hedges	-0.3	0.4	-0.2	0.3	0.4
Other items	0.0	0.0	0.0	0.0	0.0
Total items that may be reclassified to profit or loss subsequently	-2.1	0.0	-0.6	0.4	-0.2
Income tax on other comprehensive income	0.4	0.0	0.2	0.0	0.1
Other comprehensive income, net of tax	-1.7	0.0	-0.4	0.3	-0.1
Total comprehensive income	-10.8	-11.3	-7.9	-8.9	-28.6
Allocation of total comprehensive income
To equity holders of the parent	-11.3	-12.0	-7.9	-8.9	-29.2
To non-controlling interest	0.5	0.7	0.0	0.1	0.6
	-10.8	-11.3	-7.9	-8.9	-28.6

Consolidated statement of financial position

MEUR	30.9.2015	30.9.2014	31.12.2014
Assets
Non-current assets
Intangible assets	6.3	7.7	8.2
Goodwill	29.2	29.1	29.1
Investment properties	8.3	8.3	8.3
Tangible assets	255.3	254.8	251.5
Investment in associates	1.2	1.2	1.2
Receivables	6.7	3.9	1.4
Other investments	0.9	0.9	0.9
Deferred tax assets	37.1	38.5	37.4
Total non-current assets	344.9	344.5	338.0
Current assets
Inventories	77.2	77.0	75.0
Receivables	46.7	46.8	43.5
Tax receivables	1.4	0.0	0.2
Cash and cash equivalents	3.8	14.0	12.1
Total current assets	129.1	137.8	130.8
Total assets	474.0	482.3	468.9
Shareholders' equity and liabilities
Shareholders' equity
Share capital	21.9	21.9	21.9
Other equity	70.0	98.7	81.2
Equity attributable to equity holders of the parent company	91.9	120.6	103.1
Non-controlling interest	8.1	8.1	8.0
Shareholders' equity	100.0	128.7	111.2
Liabilities
Non-current
Capital loans	0.0	0.0	0.0
Interest bearing	151.3	167.3	159.1
Interest free	0.6	0.5	0.1
Provisions	9.6	9.1	9.7
Deferred tax liability	13.1	11.8	12.9
Current
Capital loans	0.0	2.0	2.0
Interest bearing	79.0	43.5	67.1
Interest free	117.4	115.7	102.2
Tax liabilities	0.9	0.3	0.1
Provisions	2.2	3.4	4.5
Total liabilities	374.0	353.6	357.7
Total shareholders' equity and liabilities	474.0	482.3	468.9

Condensed consolidated cash flow statement

MEUR	1.1.-30.9.2015	1.1.-30.9.2014	1.1.-31.12.2014
Cash flow from operating activities
Result after financial items	-7.1	-13.3	-28.7
Depreciation, amortization and write-downs	13.6	13.9	22.9
Net financial income and expenses	18.0	24.5	30.9
Other income and expenses, adjustments to cash flow	-5.9	-4.0	-0.8
Change in net working capital	7.6	-12.1	-16.8
Cash flow from operations before financing and income taxes	26.1	9.0	7.5
Interest received and paid and dividends received	-14.6	-17.7	-25.7
Taxes paid	-0.6	-2.4	-2.4
Net cash flow from operating activities	11.0	-11.1	-20.6
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired	-	-	-0.3
Capital expenditure in tangible and intangible assets	-19.1	-11.1	-16.2
Proceeds from tangible and intangible assets	0.4	2.9	2.9
Other investments and loans granted	0.0	0.0	0.0
Proceeds from other investments and repayments of loan receivables	1.4	0.0	0.3
Net cash flow from investing activities	-17.3	-8.3	-13.4
Cash flow from financing activities
Dividends paid	-0.4	-	-
Proceeds from share issue	-	28.4	28.4
Expenses of share issue	-	-	-1.9
Repayment of finance lease liabilities	-3.7	-2.1	-4.1
Draw-down (+)/ repayment (-) of current loans	-6.3	6.7	33.4
Draw-down of non-current loans	18.9	7.0	7.0
Repayment of non-current loans and other changes	-10.5	-16.7	-26.8
Net cash flow from financing activities	-2.0	23.2	36.0
Change in liquid assets	-8.3	3.8	2.0
Cash and cash equivalents at the beginning of the period	12.1	10.2	10.2
Effects of exchange rate changes on cash	0.0	0.0	0.0
Cash and cash equivalents at the period end	3.8	14.0	12.1

Statement of changes in consolidated shareholders' equity

					Trans -				Share -
		Share		Cash	lation			Non	holders'
	Share	premium	Other	flow	diffe	Retained		controlling	equity
MEUR	capital	account	reserves	hedges	rences	earnings	Total	interest	total
Shareholders' equity 1.1.2014	21.9	15.0	121.3	-0.7	-36.8	-42.9	77.7	7.4	85.2
Net profit						-12.0	-12.0	0.7	-11.3
Translation differences					0.1		0.1	0.0	0.1
Actuarial gains and losses						-0.4	-0.4	0.0	-0.4
Cash flow hedges				0.4			0.4		0.4
Other comprehensive income items			0.0				0.0		0.0
Total comprehensive income			0.0	0.4	0.1	-12.4	-12.0	0.7	-11.3
Interest, hybrid bond						-3.8	-3.8		-3.8
Share issue			58.6				58.6		58.6
Shareholders' equity 30.9.2014	21.9	15.0	179.8	-0.4	-36.7	-59.1	120.6	8.1	128.7
					Trans -				Share -
		Share		Cash	lation			Non	holders'
	Share	premium	Other	flow	diffe	Retained		controlling	equity
MEUR	capital	account	reserves	hedges	rences	earnings	Total	interest	total
Shareholders' equity 1.1.2015	21.9	15.0	179.5	-0.4	-36.3	-76.5	103.1	8.0	111.2
Net profit						-9.7	-9.7	0.6	-9.1
Translation differences					-0.1		-0.1	0.0	-0.1
Actuarial gains and losses						-1.3	-1.3	-0.1	-1.3
Cash flow hedges				-0.2			-0.2		-0.2
Other comprehensive income items			0.0				0.0		0.0
Total comprehensive income			0.0	-0.2	-0.1	-10.9	-11.3	0.5	-10.8
Dividend							0.0	-0.4	-0.4

Key Ratios

	30.9.2015	30.9.2014	31.12.2014
Equity ratio, %	21.1	26.7	23.7
Equity per share, EUR	0.94	1.24	1.06
Invested capital at period end, MEUR	330.3	341.5	339.3
Return on investment, excl. one-time items and
operative exchange rate differences, %	4.1	7.0	5.6
Return on investment, %	4.4	4.8	0.8
Return on equity, excl. one-time items and operative exchange rate differences, %	-14.1	-6.5	-12.1
Return on equity, %	-11.3	-15.9	-29.1
Net interest bearing debt, preferred capital note in debt, MEUR	226.5	198.8	216.0
Net gearing, preferred capital note in debt, %	226.5	154.4	194.4
Order book, MEUR	82.1	79.1	88.9
Investments in non-current assets excl. finance leases, MEUR	14.9	11.2	16.4
Investments in non-current assets incl. finance leases, MEUR	18.7	14.6	22.6
Investments in non-current assets (incl. finance leases), % of net sales	5.0	3.9	4.6
Average number of personnel during the period	3,975	4,142	4,111
Average number of personnel during the period, incl. leased personnel	4,278	4,479	4,438
Number of personnel at period end	4,002	4,105	3,981
Number of personnel at period end, incl. leased personnel	4,286	4,440	4,238
Share of export and foreign activities in net sales, %	91.6	91.6	91.7
Contingent liabilities, MEUR	709.0	583.3	662.4
Earnings per share (EPS), EUR	-0.10	-0.42	-0.63
Earnings per share, with dilution (EPS), EUR	-0.10	-0.42	-0.63
Cash flow per share, EUR	0.07	-0.31	-0.40

Changes in tangible assets and goodwill

MEUR	1-9/2015	1-9/2014	1-12/2014
Changes in tangible assets
Acquisition cost at the beginning of the period	571.2	561.3	561.3
Translation differences	-0.1	-2.7	-4.7
Additions	18.6	13.5	22.0
Companies acquired	0.0	-	0.0
Revaluation of buildings and land areas	0.0	-	0.0
Disposals and transfers between items	-3.8	0.0	-7.4
Acquisition cost at the end of the period	585.9	572.2	571.2
Accumulated depreciation at the beginning of the period	-319.7	-308.0	-308.0
Translation differences	0.1	1.1	2.6
Accumulated depreciation on disposals and transfers	0.8	1.2	5.5
Accumulated depreciation on companies acquired	0.0	-	0.0
Depreciation, amortization and write-downs during the period	-11.7	-11.7	-19.9
Accumulated depreciation at the end of the period	-330.6	-317.3	-319.7
Book value at the end of the period	255.3	254.8	251.5
Goodwill
Acquisition cost at the beginning of the period	29.1	29.1	29.1
Translation difference	0.0	0.0	0.0
Book value at the end of the period	29.2	29.1	29.1

Group development

Net sales by market area

MEUR	1-12/2014	1-9/2014	1-9/2015
Germany	103.1	77.0	79.3
Sweden	89.1	68.7	66.6
Turkey	60.6	43.4	50.1
UK	45.1	35.2	30.6
Finland	41.0	31.5	31.6
Benelux countries	40.2	30.0	31.1
Italy	30.9	25.3	24.6
France	30.5	23.1	20.1
Other European countries	20.8	16.3	17.0
Other countries	33.9	25.2	24.6
Total	495.2	375.6	375.6

Quarterly net sales development by market area

MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15
Germany	28.2	26.0	22.8	26.1	29.4	26.9	23.0
Sweden	25.3	25.8	17.7	20.3	23.7	25.4	17.5
Turkey	15.4	14.0	14.0	17.2	18.2	17.9	14.0
UK	12.2	12.7	10.3	9.9	10.0	9.9	10.8
Finland	12.1	11.1	8.3	9.5	11.9	11.5	8.2
Benelux countries	10.3	10.4	9.2	10.3	10.4	11.6	9.1
Italy	6.9	8.9	9.5	5.6	7.5	8.0	9.2
France	8.1	8.9	6.0	7.4	7.3	7.1	5.8
Other European countries	5.1	5.7	5.4	4.6	5.8	5.8	5.5
Other countries	8.2	9.1	7.8	8.7	9.1	8.0	7.5
Total	131.9	132.6	111.0	119.6	133.1	132.0	110.5

Group development excluding one-time items and operative exchange rate differences

MEUR	1-12/2014	1-9/2014	1-9/2015
Net sales	495.2	375.6	375.6
Operating profit	17.8	16.6	10.2
Net financial items *)	-27.3	-21.3	-18.0
Profit after financial items	-9.5	-4.7	-7.8

*) Net financial items are not allocated to business segments

Group development by business segment excluding one-time items and operative exchange rate differences

Operating profit, MEUR	1-12/2014	1-9/2014	1-9/2015
Foundry division	5.3	6.5	0.5
Machine shop division	3.8	3.5	1.7
Aluminium division	8.2	6.4	8.0
Other business	0.7	0.3	-0.2
Internal items	-0.2	-0.2	0.2
Componenta total	17.8	16.6	10.2

Group development by quarter excluding one-time items and

operative exchange rate differences

MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15
Net sales	131.9	132.6	111.0	119.6	133.1	132.0	110.5
Operating profit	7.4	7.9	1.3	1.2	5.8	3.9	0.5
Net financial items *)	-7.5	-7.0	-6.8	-6.0	-5.3	-6.2	-6.5
Profit after financial items	-0.1	0.9	-5.5	-4.9	0.5	-2.3	-6.0

*) Net financial items are not allocated to business segments

Quarterly development by business segment excluding one-time items and

operative exchange rate differences
Operating profit, MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15
Foundry division	3.8	3.8	-1.0	-1.2	2.0	1.6	-3.1
Machine shop division	0.9	1.9	0.8	0.2	0.8	0.3	0.6
Aluminium division	2.4	2.2	1.8	1.8	2.6	2.3	3.1
Other business	0.3	0.2	-0.2	0.4	0.4	-0.4	-0.2
Internal items	0.0	-0.2	0.0	-0.1	0.0	0.1	0.1
Componenta total	7.4	7.9	1.3	1.2	5.8	3.9	0.5

Group development

MEUR	1-12/2014	1-9/2014	1-9/2015
Net sales	495.2	375.6	375.6
Operating profit	2.2	11.2	10.9
Net financial items *)	-30.9	-24.5	-18.0
Profit after financial items	-28.7	-13.3	-7.1

*) Net financial items are not allocated to business segments

Group development by business segment

Net sales, MEUR	1-12/2014	1-9/2014	1-9/2015
Foundry Division
External sales	212.0	164.4	160.4
Internal sales	95.7	74.2	63.8
Total sales	307.8	238.6	224.2
Machine Shop Division
External sales	109.6	81.4	85.8
Internal sales	12.1	8.8	8.2
Total sales	121.7	90.3	93.9
Aluminium Division
External sales	72.4	52.7	63.6
Internal sales	7.1	5.8	6.7
Total sales	79.5	58.5	70.2
Other Business
External sales	101.2	77.1	65.9
Internal sales	28.7	21.6	19.8
Total sales	129.9	98.7	85.7
Internal items	-143.7	-110.5	-98.4
Componenta total	495.2	375.6	375.6
Operating profit, MEUR	1-12/2014	1-9/2014	1-9/2015
Foundry division	3.7	5.4	2.6
Machine shop division	3.2	3.2	1.9
Aluminium division	7.9	6.3	8.6
Other business	0.5	0.2	-0.1
One-time items	-12.9	-3.7	-2.4*)
Internal items	-0.2	-0.2	0.3
Componenta total	2.2	11.2	10.9

*) One-time items in 2015 relate to the closure related costs of Smedjebacken forge (EUR -1.1 million), reorganization costs of Orhangazi unit (EUR -0.5 million), costs related to transfer of production from Pietarsaari Foundry to Pori Foundry (EUR -0.4 million) and other one-time items (in total EUR -0.3 million).

Group development by quarter

MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15
Net sales	131.9	132.6	111.0	119.6	133.1	132.0	110.5
Operating profit	6.5	5.5	-0.8	-9.0	4.4	5.7	0.8
Net financial items *)	-7.5	-7.0	-10.0	-6.4	-5.3	-6.2	-6.5
Profit after financial items	-1.0	-1.5	-10.8	-15.4	-0.9	-0.5	-5.8

*) Net financial items are not allocated to business segments

Quarterly development by business segment

Net sales, MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15
Foundry division	84.6	83.1	70.9	69.2	81.4	76.9	65.9
Machine shop division	30.4	33.1	26.8	31.5	33.5	33.7	26.8
Aluminium division	18.1	19.7	20.7	21.0	22.2	25.2	22.8
Other business	36.0	34.2	28.5	31.2	31.8	30.6	23.2
Internal items	-37.1	-37.5	-35.8	-33.2	-35.8	-34.3	-28.3
Componenta total	131.9	132.6	111.0	119.6	133.1	132.0	110.5
Operating profit, MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15
Foundry division	4.0	3.1	-1.7	-1.7	1.4	3.2	-1.9
Machine shop division	0.8	1.6	0.8	0.0	1.0	0.6	0.3
Aluminium division	2.3	2.3	1.7	1.6	2.4	2.8	3.4
Other business	0.3	0.1	-0.2	0.3	0.5	-0.4	-0.3
One-time items	-0.9	-1.5	-1.4	-9.1	-1.0*)	-0.5*)	-0.8*)
Internal items	0.0	-0.2	0.0	-0.1	0.1	0.1	0.1

*) One-time items in 2015 relate to the closure related costs of Smedjebacken forge (EUR -1.1 million), reorganization costs of Orhangazi unit (EUR -0.5 million), costs related to transfer of production from Pietarsaari Foundry to Pori Foundry (EUR -0.4 million) and other one-time items (in total EUR -0.3 million).

Order book at period end, MEUR	Q1/14	Q2/14***)	Q3/14	Q4/14**)	Q1/15*)	Q2/15	Q3/15
Foundry division	55.3	54.4	42.3	49.2	51.9	56.5	45.8
Machine shop division	23.2	25.2	19.0	22.1	22.8	26.4	21.0
Aluminium division	14.1	15.3	14.4	15.9	17.2	18.1	16.5
Other business	21.0	23.2	18.9	17.7	17.2	19.4	13.3
Internal items	-22.9	-23.2	-15.5	-16.0	-16.8	-23.5	-14.4
Componenta total	90.7	94.8	79.1	88.9	92.3	96.8	82.1

*) Order book on 6 April 2015

**) Order book on 8 January 2015

***) Order book on 4 July 2014

Business segments

MEUR	30.9.2015	30.9.2014	31.12.2014
Foundry division
Assets	271.9	279.1	271.0
Liabilities	79.2	86.8	75.4
Investments in non-current assets (incl. finance leases)	6.0	8.4	12.4
Depreciation, amortization and write-downs	5.8	5.8	12.3
Machine shop division
Assets	67.2	64.8	67.8
Liabilities	46.5	32.8	39.9
Investments in non-current assets (incl. finance leases)	3.4	3.6	6.0
Depreciation, amortization and write-downs	2.4	3.0	3.5
Aluminium division
Assets	69.4	52.5	51.5
Liabilities	20.4	6.3	5.5
Investments in non-current assets (incl. finance leases)	8.2	1.9	2.8
Depreciation, amortization and write-downs	2.4	2.2	2.9
Other business
Assets	71.7	77.2	78.1
Liabilities	44.8	52.5	50.9
Investments in non-current assets (incl. finance leases)	1.1	0.7	1.5
Depreciation, amortization and write-downs	3.0	2.9	4.2

Fair values of derivative instruments

		30.9.2015		30.9.2014	31.12.2014
	Fair value,	Fair value,	Fair value,	Fair value,	Fair value,
MEUR	positive	negative	net	net	net
Currency derivatives
Foreign exchange forwards				-	0.0
Currency swaps	0.1	-0.6	-0.5	0.3	0.4
Interest rate derivatives
Interest rate swaps	0.0	0.0	0.0	-0.1	-0.1
Commodity derivatives
Electricity price forwards	0.0	-0.9	-0.9	-0.5	-0.7
Total	0.1	-1.4	-1.4	-0.4	-0.3

Nominal values of derivative instruments

	30.9.2015	30.9.2014	31.12.2014
MEUR	Nominal value	Nominal value	Nominal value
Currency derivatives *)
Foreign exchange forwards	-	-	0.1
Currency swaps	38.2	58.6	54.3
Foreign exchange options	-	-	-
Interest rate derivatives
Interest rate swaps
Maturity in less than a year	5.0	-	5.0
Maturity after one year and less than five years	-	5.0	-
Commodity derivatives
Electricity price forwards
Maturity in less than a year	0.6	0.7	2.4
Maturity after one year and less than five years	2.9	3.8	1.9
Total	46.7	68.1	63.8

*) Currency derivatives mature in less than a year.

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 Q3 / 2015

MEUR	LEVEL 1	LEVEL 2	LEVEL 3
Foreign exchange rate derivatives (OTC)	-	-0.5	-
Interest rate derivatives (OTC)	-	0.0	-
Commodity derivatives	-0.9	-	-
Available-for-sale investments	-	-	0.9

Fair values by classification of valuation method Q3 / 2014

MEUR	LEVEL 1	LEVEL 2	LEVEL 3
Foreign exchange rate derivatives (OTC)	-	0.3	-
Interest rate derivatives (OTC)	-	-0.1	-
Commodity derivatives	-0.5	-	-
Available-for-sale investments	-	-	0.9

Fair values by classification of valuation method Q4 / 2014

MEUR	LEVEL 1	LEVEL 2	LEVEL 3
Foreign exchange rate derivatives (OTC)	-	0.4	-
Interest rate derivatives (OTC)	-	-0.1	-
Commodity derivatives	-0.7	-	-
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.

Contingent liabilities

MEUR	30.9.2015	30.9.2014	31.12.2014
Real-estate mortgages
For own debts	11.2	11.2	11.2
Business mortgages
For own debts	103.3	103.4	103.4
Pledges
For own debts	589.2	462.3	541.4
Other leasing commitments	3.9	5.3	5.2
Other commitments	1.3	1.1	1.3
Total	709.0	583.3	662.4

On 30 September 2015 Componenta had contingent financial leasing liabilities, from not yet started contracts, amounting to EUR 6.7 million (EUR 2.0 million) and 31 December 2014 EUR 1.2 million. Financial leasing liability and the investment capitalization is recorded in the statement of financial position when the financial leasing contract begins and when the financial leasing underlying machinery etc. object is received.

Key exchange rates for the Euro

		Closing rate			Average rate
One Euro is	30.9.2015	30.9.2014	31.12.2014	30.9.2015	30.9.2014	31.12.2014
SEK	9.4083	9.1465	9.3930	9.3709	9.0405	9.0985
USD	1.1203	1.2583	1.2141	1.1144	1.3549	1.3285
GBP	0.7385	0.7773	0.7789	0.7271	0.8118	0.8061
TRY (Turkish central bank)	3.4212	2.8914	2.8207	2.9583	2.9324	2.9049
RUB	73.2416	49.7653	72.3370	66.5974	48.0152	50.9518

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 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 com pany 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 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
EBITDA, EUR	= Operating profit + Depreciation, amortization and write-downs +/- Share of the associated companies' result

*) The profit for the first three quarters of the year in ROE and ROI has been calculated as an average annual return (annualised).

Componenta Corporation

Panuntie 4 FI-00610 Helsinki Finland Tel. +358 10 403 00 Fax +358 10 403 2721 www.componenta.com