Componenta Oyj — Interim / Quarterly Report 2015

Mar 11, 2016

FINANCIAL STATEMENTS BULLETIN

1 January - 31 December 2015

Componenta Financial Statements Bulletin 1 January - 31December 2015: Net sales at same level as in previous year, operating profit fell. Changes in the focus points for business operations in accordance with the new strategy that is being drawn up resulted in significant write-downs on long-term assets.

January - December 2015 summary

• Order book declined 14% from previous year to MEUR 77 (MEUR89). • Consolidated net sales in the financial year totalled MEUR 495 (MEUR
• 495). • EBITDA excluding one-time items and exchange rate differences on balance sheet items was MEUR 23.8 (MEUR 35.8). Reasons for the decline in EBITDA included wage inflation in Turkey, weaker developments in productivity than expected, and problems with quality in foundry operations.
• Operating profit excluding one-time items and exchange rate differences on balance sheet items ("operating profit on business operations") was MEUR 6.0 (MEUR 17.8) and including these items MEUR -23.4 (MEUR 2.2).
• The result after financial items excluding one-time items and exchange rate differences on operative balance sheet items was MEUR -19.4 (MEUR -9.5) in the year. The result after financial items excluding onetime items was MEUR -18.4 (MEUR -12.2).
• One-time items and exchange rate differences on operative balance sheet items that had an impact on the result after financial items for the review period totalled MEUR -29.5 (MEUR-19.2). The company's Board of Directors has started structural changes which will be implemented step by step until the profitability of the company meets its targets. The new strategy that is being drawn up has been redefined, and Componenta will focus on medium volume product series in iron castings and on aluminium castings, and aims to raise capacity utilization rates at all its production plants. The expected impact of the strategy being drawn up was taken into consideration in the impairment testing of assets, and write-downs on real estate and machinery and equipment were recorded as one-time items based on this impairment testing.
• The net result for the period was MEUR -82.7 (MEUR -28.6). During the financial year the Group recorded one-time changes in tax of MEUR -33.9. These mainly comprise write-downs on deferred tax assets in Finland, the Netherlands and Sweden. Due to low profitability the probability of being able to make use of tax losses has declined significantly in these countries.
• Basic earnings per share were EUR -0.86 (EUR -0.63).
• At the beginning of December Componenta started negotiations for a financing solution, which would support the new strategic alignments, ensure the company's financial position and strengthen the balance sheet. In addition, negotiations began relating to the Nordic syndicated loan agreement because the company was not in compliance with certain terms of the loan agreement. At the end of December Componenta signed a standstill agreement with the Nordic counterparties of the syndicated loan, according to which the lenders relieve Componenta from complying with the loan terms mentioned

above for a fixed period. The agreement is in force until end of April 2016 and it contains typical terms for such agreements that the company has to fulfil for the duration of the agreement. The Group has long- and short-term loans from financial institutions of EUR 143.9 million maturing in 2016 and EUR 24.9 million maturing in 2017. Failure to comply with certain terms of the syndicated loan agreement and cross default terms have resulted in several debt instalments, nominal amount of EUR 63.2 million, being classified as current in the company's balance sheet. The company's liquidity was tight at the end of 2015 and early in 2016, and this has had a negative impact on the company's production operations. Negotiations with financial and other investment institutions have continued at the beginning of 2016.

• Componenta published an announcement about the progress of financial negotiations on 11 March 2016.
• New contracts received during the year totalled MEUR 75.
• The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2015 financial year.

October - December 2015 summary

• Net sales were at a similar level as in the previous year, standing at MEUR 119 (MEUR 120).
• EBITDA excluding one-time items and exchange rate differences on balance sheet items was MEUR 0.1 (MEUR 5.4).
• Operating profit excluding one-time items and exchange rate differences on balance sheet items was MEUR -4.2 (MEUR 1.2) and including these items MEUR -34.3 (MEUR -9.0).
• The result after financial items excluding one-time items and exchange rate differences on operative balance sheet items was MEUR -11.6 (MEUR -4.9). The result after financial items excluding one-time items was MEUR -13.7 (MEUR -5.9).
• One-time items and exchange rate differences on operative balance sheet items that had an impact on the result for the October - December period totalled MEUR -30.1 (MEUR -10.5). One-time items include writedowns of MEUR -19.6 on machinery, equipment and real estates.
• The net result for the October December period was MEUR -73.6 (MEUR -17.3) and the basic earnings per share were EUR -0.76 (EUR-0.18). The result includes one-time changes in tax of MEUR -35.5.
• The president and CEO of Componenta Group changed on 16 November 2015 when Harri Suutari, who had been chairman of the company's Board of Directors, was appointed president and CEO.
• The objective of the new strategy that is being drawn up is to achieve a clear improvement in profitability. In future the company will concentrate on medium volume product series in iron castings and on aluminium castings and aims to raise capacity utilization rates at all its production plants.

Dividend proposal

On 31 December 2015 the parent company had distributable equity of EUR 58.1 (204.1) million. The Board of Directors proposes to the Annual General Meeting to be held on 18 March 2016 that no dividend be paid for the 1 January - 31 December 2015 financial period.

President and CEO Harri Suutari comments on the review period and events after the end of period

"Componenta's net result in 2015 was extremely poor. Despite its excellent customers and skilled personnel, and in spite of many measures taken and efforts to improve, the company's financial performance has fallen short of its targets in the past few years, due to poorer developments than expected in productivity, high quality related costs, and tight liquidity over a long period. On top of this, the targeted cost savings have not been achieved as expected.

In order to reverse this trend, the company needs major structural changes. In November 2015 the company's Board of Directors initiated changes, and progress will be made step by step with these until the company's profitability is brought in line with its targets.

The new strategy that is being drawn up has been redefined and Componenta will in future concentrate on medium volume product series in iron castings and on aluminium castings, and aims to raise capacity utilization rates at all its production plants. In connection with this, a strategic review of the business structure will be carried out, and this will cover the possible closure or sale of production plants, transfers of production and other measures aiming to significantly improve profitability. The strategic review will cover

all the Group's production plants in the Netherlands, Sweden and Finland.

As part of the new alignments, Componenta's organization management structure was clarified by dividing the business operations into five business areas. The organization structure was simplified by integrating into the business units the Group level sales, engineering, quality and customer service functions, with the aim of developing the core competences of the business units and clearly improving customer service and quality. Fixed costs will be cut with several measures, the most notable being the reorganization of the customer interface. In addition, in Finland personnel involvement in management will be improved by appointing an employee representative as a member of each business unit management team.

In the new management structure, profit and loss responsibility will be transferred to the business units. I believe that the renewed operational model will bring significant value to our customers and create a solid base for profitable growth."

Key figures	Q4 2015	Q4 2014	Change	2015	2014	Change
Order book, MEUR	76.9	88.9	-14%	76.9	88.9	-14%
Net sales, MEUR	119	120	0%	495	495	0%
EBITDA*), MEUR	0.1	5.4	-98%	23.8	35.8	-33%
Operating profit*), MEUR	-4.2	1.2	n/m	6.0	17.8	-66%
Operating profit*), %	-3.5	1.0	n/m	1.2	3.6	-66%
Result after financial items*), MEUR	-11.6	-4.9	139%	-19.4	-9.5	103%
Result after financial items excluding one-time items, MEUR	-13.7	-5.9	133%	-18.4	-12.2	50%
One-time items and exchange rate differences on operative balance sheet items impacted on the result after financial items, MEUR	-30.1	-10.5	187%	-29.5	-19.2	54%
Taxes, MEUR	-31.8	-1.9	1,587%	-33.8	0.2	n/m
Net result for the financial year, MEUR	-73.6	-17.3	326%	-82.7	-28.6	189%
Earnings per share, EUR	-0.76	-0.18	326%	-0.86	-0.63	36%
Net gearing, %	1,273	194	555%	1,273	194	555%
Return on investment*), %	-1.3	0.4	n/m	2.0	5.6	-65%
Return on equity*), %	-8.9	-7.3	21%	-21.6	-12.1	79%
Number of personnel at year end, incl. leased personnel	4,269	4,238	1%	4,269	4,238	1%

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

Componenta's guidance for 2016

Due to the financial situation of the company and the structural changes currently taking place, giving earnings guidance is exceptionally challenging. Because of this, Componenta is not for the time being making forecasts about its financial performance when commenting on its prospects.

Componenta Financial Statements Bulletin 1 January - 31 December 2015: Net sales at same level as in previous year, operating profit fell. Changes in the focus points for business operations in accordance with the new strategy that is being drawn up resulted in significant write-downs on long-term assets.

Summary of main events in 2015

For Componenta 2015 was a challenging year. After the early part of the year there was only slight growth in demand. Componenta's net sales in 2015 were at a similar level as in the previous year. The operating profit fell short of the previous year in every quarter. The improvement in productivity and the estimated cost savings from the measures in the Group's efficiency improvement program were not achieved as expected. Profitability was weakened not only by the poor developments in productivity but also by costs arising from problems with quality, extra costs arising from local strikes and rising cost levels in Turkey, and problems due to disruptions in production in Främmestad.

In June 2015 Componenta's Turkish subsidiary Componenta Dökümcülük A.S. signed a new credit facility agreement, which comprises a EUR 10 million revolving credit facility and a EUR 20 million investment loan for the new aluminium foundry in Manisa in Turkey.

Componenta's aluminium business segment has been some of the Group's most profitable business, and the new aluminium foundry under construction in Manisa is in response to increased market demand and to the growth in delivery volumes. In 2015 Componenta signed a major contract for aluminium components, with deliveries continuing until 2025. The new foundry

building was completed by the end of the year and installation of machinery began at the start of 2016, so production will partially begin during 2016. The cost of the real estate investment is EUR 12.4 million.

In the summer Componenta signed an agreement with Michel Van de Wiele NV, owner of Belgian company Ferromatrix NV, to start cooperation on the production and sales of large Furan cast components at the beginning of 2016. The Ferromatrix foundry is responsible for the production of the Furan castings and a joint venture, in which the two companies have equal shares, for sales and customer relations. In consequence of these changes, the loss-making furan casting line at Componenta's Heerlen foundry is being closed down in the first quarter of 2016. A write-down of EUR 1.6 million on machinery and equipment was recorded in the 2015 financial statements as the result of the closure of the production line. This will result in a reduction of 128 in the number of jobs at the foundry and future personnel costs of EUR 3.3 million were recorded arising from past work performed.

Componenta's main goals in 2015 were to improve productivity and profitability and to achieve cost savings in the production units. The company failed to achieve these goals and the Group's financial performance fell considerably short of expectations. The president and CEO of Componenta Group changed on 16 November 2015 when Harri Suutari, who had been chairman of the company's Board of Directors, was appointed president and CEO. Matti Ruotsala, formerly vice chairman of the Board, took over as chairman of the Board. Markku Honkasalo started as CFO at Componenta on 14 December 2015.

The Group's strategic alignments were renewed to achieve a clear improvement in profitability. In line with the strategy that is being drawn up Componenta will focus on medium volume product series in iron castings and on aluminium castings and aims to raise capacity utilization rates in order to improve profitability at all its production plants.

Negotiations on financing solutions in support of the new strategic alignments and to strengthen the company's financial position and balance sheet began in December. A standstill agreement was signed in connection with the Nordic syndicated loan agreement whereby the lenders released Componenta from having to comply with certain terms of the loan for a fixed period. The agreement is in force until the end of April 2016.

Developments in business environment and order book

Componenta's order book at the beginning of 2016 was 14% lower than in the previous year at EUR 77 (89) million. The order book comprises confirmed orders for the next two months. The fall in the prices of recycled steel, iron and aluminium in 2015 reduced the order book by some EUR 3 million compared to the same time in the previous year, because of lower raw material surcharges.

The order book for the Componenta's heavy trucks customer sector was 20% smaller than at the same time in the previous year. Overall, market conditions in the heavy trucks customer sector in Europe have improved from the previous year. But this has only had a small impact on demand for components in Europe, since heavy truck manufacturers have temporarily switched their production outside Europe to balance out their own production and demand in different market areas. Componenta's sales to customer sector were slightly better than in the previous year.

The order book for the construction and mining customer sector declined 17% from the same time in the previous year. Componenta's full year sales to construction and mining customers declined, although this was less than the decline in the market thanks to the impact of new products. The slowdown towards the end of the year in the construction and mining market has affected all customers. Low volumes have also affected new sales.

The order book for the machine building customer sector declined 6% from the previous year. The weak market has mainly impacted customers in central Europe, and positive developments in new sales and the more even state of the market in the Nordic countries have helped to compensate this.

The order book for Componenta's agricultural machinery customer sector fell 17% from the previous year due to the weak market conditions that continue in the sector.

The order book for the automotive customer sector declined 1 % from the previous year. Componenta's sales increased 18% from the previous year. Market demand has remained strong as have the company's new sales to vehicle manufacturers.

New contracts obtained by Componenta in the review period had a value of EUR 75 million. These new contracts refer to sales of components that will contribute annually an average of EUR 75 million to sales during the next five years. They will mainly start to have a visible impact from 2016 onwards.

Net sales

Componenta's net sales in the year were the same as in the previous year, at EUR 495 (495) million. The Group's capacity utilization rate in the period was 58% (58%).

Componenta's net sales in the financial year by customer sector were as follows: heavy trucks 32% (32%), construction and mining 16% (18%), machine building 21% (20%), agricultural machinery 13% (15%) and automotive 18% (15%).

Result

Componenta's EBITDA for the 2015 financial year excluding onetime items and exchange rate differences on balance sheet items declined from the previous year to EUR 23.8 (35.8) million. EBITDA was reduced by the weakening of the Turkish lira and high wage inflation in Turkey, some EUR -5 million, the strikes in the second quarter in the Turkish automotive industry, some EUR -2 million, and problems arising from disruptions in production at the Främmestad machine shop mainly during the first and second quarters, some EUR -2 million. During the final quarter the Group had quality related problems that had an estimated impact on EBITDA for the quarter of some EUR -2 million. In addition the result for the final quarter was weakened by write-downs on raw material inventories due to the fall in prices of recycled steel, by higher material costs than expected in the Foundry Division, and by disruptions to operations caused by the tight liquidity. The positive impact of the efficiency improvement program fell short of the targets set for it.

The consolidated operating profit in the year excluding one-time items and exchange rate differences on balance sheet items declined from the previous year to EUR 6.0 (17.8) million. The operating profit including these items was EUR -23.4 (2.2) million.

The Group's net financial costs in the review period, excluding one-time costs, totalled EUR -25.4 (-27.3) million. Net financial costs were EUR 1.9 million lower than in the previous year due to lower net interest costs of EUR 3.6 million, although their positive impact was weakened by exchange rate losses on financial items of EUR -1.4 million. One-time items relating to net financial costs for the year were EUR -0.1 (-3.7) million.

The Group's result for the period after financial items, excluding one-time items and exchange rate differences on operative balance sheet items, was EUR -19.4 (-9.5) million, and including these items EUR -48.9 (-28.7) million. The Group's result after financial items excluding one-time items was EUR -18.4 (-12.2) million.

One-time items in the year included in the operating profit totalled EUR -30.5 (-12.9) million. One-time costs in the operating profit in 2015 are related to the restructuring measures at the units in the Netherlands EUR -3.3 million, write-downs on machinery, equipment and buildings at the units in the Netherlands EUR -4.2 million and write-downs on receivables and inventories at the units in the Netherlands EUR -0.8 million, write-downs at the units in Finland on machinery and equipment EUR -9.3 million and on buildings EUR -4.6 million, writedowns on investment property in Finland EUR -1.3 million, costs in connection with transferring production from the Pietarsaari foundry to the Pori foundry EUR -0.9 million, closing down the Smedjebacken forge in Sweden EUR -1.3 million, extra waste treatment costs and other costs at the Orhangazi foundry EUR -2.4 million, write-downs on overdue receivables at the Turkish units EUR -0.6 million, and write-downs on product projects that have been terminated EUR -1.1 million. Other one-time items in operating profit were EUR -0.7 million.

The company's Board of Directors has started structural changes which will be implemented step by step until the profitability of the company meets its targets. The expected impact of the strategy being drawn up was taken into account in the impairment

testing of assets, and write-downs on real estate and machinery and equipment were recorded as one-time items based on the impairment testing. One-time items include a total of EUR -19.6 million in write-downs on machinery, equipment and property mainly due to the low capacity usage in foundry operations in the Netherlands and Finland.

Income taxes for the financial year totalled EUR -33.8 (+0.2) million. Deferred taxes were re-assessed during the year in consequence of the new strategic alignment, and tax expenses include write-downs of EUR 37.5 million on deferred tax assets relating to tax losses. The write-downs by country were as follows: Finland EUR 22.5 million, Netherlands EUR 8.1 million and Sweden EUR 6.8 million. The company believes that it will be able to make use of the written down tax assets in the future, but because of the poor financial performance, and with the efficiency improvement program falling short of its targets the probability of utilising the tax losses in these countries has declined significantly compared to 2014. At the end of the 2015 financial year the company has on its balance sheet deferred tax assets relating to tax losses of EUR 5.4 million in Finland and EUR 0.4 million in Sweden.

The result for the period was EUR -82.7 (-28.6) million. Basic earnings per share were EUR -0.86 (-0.63).

The return on investment, excluding one-time items and exchange rate differences on operative balance sheet items, was 2.0% (5.6%) and after these items -7.2% (0.8%).

Return on equity, excluding one-time items and exchange rate differences on operative balance sheet items, was -21.6% (-12.1%) and after these items -92.6% (-29.1%).

Balance sheet, financing and cash flow

In June Componenta's Turkish subsidiary Componenta Dökümcülük A.S. signed a 5.5 year credit facility agreement. The agreement comprises a EUR 20 million investment loan which will be taken in stages as the investment is carried out, and a EUR 10 million working capital loan. Through this financial arrangement the average maturity for Componenta Dökümcülük's interest bearing loans rose.

At the beginning of December Componenta started negotiations towards a financing solution that would support the new strategic alignments and ensure the strengthening of the company's financial position and balance sheet. The company also began negotiations in connection with the Nordic syndicated loan agreement, for which the company had not met certain conditions at that time. At the end of December Componenta signed a standstill agreement with the Nordic partners in the syndicated loan agreement, whereby the lenders released Componenta from having to comply with certain terms of the loan for a fixed period. The agreement is in force until the end of April 2016 and it contains terms that are normal for agreements of this nature and that the company has to fulfil while the agreement is in force. The Group has long- and short-term loans from financial institutions

of EUR 143.9 million maturing in 2016 and EUR 24.9 million maturing in 2017. Failure to comply with certain terms of the syndicated loan agreement and cross default terms have resulted in several debt instalments, nominal amount of EUR 63.2 million, being classified as current in the company's balance sheet. The company's liquidity was tight at the end of 2015 and early in 2016, and this has had a negative impact on the company's production operations. Negotiations with financial and other investment institutions have continued during the first months of the year 2016.

At the end of the year, Componenta's cash funds, bank receivables and binding credit facilities totalled EUR 10.6 (14.0) million. The binding credit facilities take into account the unused amount on the closing date of the loan agreement signed in June, EUR 4.5 million. The loan is being taken in stages as the investment is carried out. The Group's interest-bearing net debt, including the outstanding capital notes of EUR 0.0 (2.0) million, totalled EUR 237 (216) million at the end of the period. The company's net debt as a proportion of shareholders' equity was 1,273% (194%). At the end of December the Group's equity ratio was 4.6% (23.7%).

Net cash flow from operations in the year was EUR 10.3 (-20.6) million. The improvement in the cash flow from operations is due to changes in working capital, which totalled EUR 21.6 (-16.8) million in the period. The funds tied up in working capital declined mainly due to reductions in inventories and trade receivables and to an increase in trade payables. Trade payables due for payment at the end of the year totalled EUR 31 million. Due to the company's poor financial performance, financing for working capital has, however, remained tight.

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 at the end of year totalled EUR 86.0 (88.9) million.

At the end of 2015, the invested capital of the company was EUR 262 (339) million.

Loans, commitments and contingent liabilities given by the parent company to Group companies classified as related parties on 31 December 2015 totalled EUR 52.7 (69.9) million. Loans, commitments and contingent liabilities given by the company to private persons classified as related parties on 31 December 2015 totalled EUR 0.2 (0.2) million.

Investments

Investments in production facilities in the financial year totalled EUR 31.5 (22.6) million, and financial lease investments accounted for EUR 5.3 (6.2) million of these. Some EUR 1.2 million of these were investments that also reduce the environmental impact of production. The net cash flow from investments was EUR -26.8 (-13.4) 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.

During the year investments to increase capacity were mainly spent on the aluminium business operations in Manisa, Turkey EUR 13.6 million, which explains most of the increase in the cash flow tied up in investments.

Strategic projects in 2015

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, which began in 2012 and was expanded in 2013 and 2014, had the target of improving the company's profitability from year 2012 level by EUR 45 million by the end of 2015. During 2015 the efficiency improvement program fell considerably short of the targets set for production efficiency. The efficiency improvement program will be replaced in line with the changes considering company's management and strategy done in November.

Developing the quality and service culture and utilising product development projects

In line with the objectives, Componenta developed its quality assurance processes and renewed its management practices to reduce quality costs, improve customer service and increase customer satisfaction.

Through the product development projects the company created considerable added value for customers. Taking advantage of these has enabled the company to sign major new contracts.

In future, in line with Componenta's new strategic alignments, product development and engineering and quality functions close to production will correspond even better to customer needs. Componenta failed to achieve its targets for reducing quality costs in 2015 and the measures to cut costs will continue in 2016.

EUR 100 million organic growth program

In the organic growth program had the goal of a EUR 100 million increase in net sales. The impact of the program on growth in sales lower than previously reported due to weakening market prospects. As part of the reorganisation of sales and the re-assessment of production operations, the program has for the time being been suspended. The business units are being strengthened by integrating into them the engineering, quality and customer service functions as well as sales, apart from global customer accounts. The changes aim to increase cooperation between production and sales, improve customer service and obtain cost savings.

Renewal of Componenta's strategy

The strategy that is being drawn up has been redefined and in future Componenta will concentrate on medium volume product series in iron castings and on aluminium castings, and aims to raise capacity utilization rates at all its production plants.. The primary objective is a clear improvement in profitability. In connection with this, Componenta is beginning a strategic review of the business structure, which will include the possible closure or sale of production plants, transfers of production and other measures aiming to significantly improve profitability. The strategic review will cover all the Group's production plants in the Netherlands, Sweden and Finland.

The objectives of the strategic review are to clarify the structure of business operations and to concentrate production capacity so that it serves Componenta's customers in the most effective way. In consequence of these measures, the profitability and competitiveness of the remaining business operations are expected to improve considerably. Other goals include considerable improvements in capacity usage, efficiency and quality, stabilising the production process, and significant reductions in fixed costs.

As part of the new alignment, the business units are being strengthened by integrating into them the engineering, quality and customer service functions as well as sales, apart from global customer accounts, that are key functions for production. The changes aim to increase cooperation between production and sales, improve customer service and obtain cost savings.

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 end of 2015 the order book for the Foundry Division was 12% lower than at the end of the previous year, standing at EUR 43.1 (49.2) 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, and agricultural machinery, and from the machine building industry.

Net sales for the Foundry Division in the financial year declined 5% from the previous year to EUR 294 (308) million. The operating profit in the year excluding one-time items and exchange rate differences on balance sheet items was EUR -4.9 million, or -1.7% of net sales (EUR 5.3 million; 1.7%). The operating profit declined from the previous year mainly due to lower volumes EUR -3.0 million, strikes in Turkey EUR -1.5 million, the weakening of the lira and high wage inflation in Turkey EUR -3.5 million, and quality related problems in production EUR -2.0 million. A further factor in weakening profitability was the poorer financial performance of the foundries in the Netherlands. The efficiency improvement program had only a very modest impact on profitability.

October - December net sales totalled EUR 69.5 (69.2) million and the operating profit excluding one-time items and exchange rate differences on balance sheet items was EUR -5.4 million, or -7.7% of net sales (EUR -1.2 million; -1.7%). The main factor depressing the fourth quarter operating profit was quality related problems in production EUR -2.0 million. Other factors weakening the result were the write-downs on raw material inventories due to the fall in the price of recycled steel, and higher than expected material costs.

The number of personnel in the Foundry Division during the review period, including leased employees, was on average 8% less than in the corresponding period in the previous year, standing at 2,530 (2,751).

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 end of 2015 the order book for the Machine Shop Division was 5% lower than at the same time in the previous year, standing at EUR 21.0 (22.1) 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, and agricultural machinery, and from the machine building industry.

During 2015 the net sales of the Machine Shop Division increased 2% from the previous year, to EUR 124 (122) million. The operating profit excluding one-time items and exchange rate differences on balance sheet items was EUR 1.6 million, or 1.3% of net sales (EUR 3.8 million; 3.1%). The operating profit declined mainly because of the disruptions in production at the Främmestad machine shop in the first half of the year some EUR -2.0 million.

October - December net sales totalled EUR 30.3 (31.5) million and the operating profit excluding one-time items and exchange rate differences on balance sheet items was EUR -0.1 million, or -0.3% of net sales (EUR 0.2 million; 0.7%). The operating profit in the final quarter was weakened by the problems in production caused by the tight liquidity.

The number of personnel in the Machine Shop Division during the review period, including leased employees, was on average 10% more than in the corresponding period in the previous year, standing at 434 (396).

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 end of 2015 the order book for the Aluminium Division was 10% lower than at the same time in the previous year, standing at EUR 14.4 (15.9) 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 fall in the price of aluminium raw material also contributed to the decline in the order book.

Net sales for the Aluminium Division in the year increased 17% from the previous year to EUR 93.0 (79.5) million. The operating profit in the period excluding one-time items and exchange rate

differences on balance sheet items was EUR 12.0 million, or 12.9 % of net sales (EUR 8.2 million; 10.3%). The operating profit improved from the previous year due to significantly higher volumes and the raising of prices. High wage inflation and the strikes in the Turkish automotive industry had a negative impact on the operating profit.

October – December net sales totalled EUR 22.8 (21.0) million and the operating profit excluding one-time items and exchange rate differences on balance sheet items was EUR 4.0 million, or 17.4% of net sales (EUR 1.8 million; 8.5%). The final quarter profitability was outstanding due to the higher volumes and production efficiency.

The number of personnel in the Aluminium Division during the review period, including leased employees, was on average 8% more than in the corresponding period in the previous year, standing at 900 (830).

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 on balance sheet items of EUR -2.8 (0.7) million in the financial year and EUR -2.7 (0.4) million in the October – December period. The operating profit in the final quarter was weakened by the poor profitability of the Wirsbo forge operations EUR -0.5 million. In addition, the re-allocation of the Group's internal service charges during the final quarter weakened the operating profit of administrative functions EUR 1.9 million.

Research and development

At the end of the 2015 financial year, 94 (99) people worked in research and development at Componenta, which corresponds to 2% (2%) of the company's total personnel. Componenta's research and development expenses in 2015 totalled EUR 2.5 (2.8) million, the equivalent of 0.5% (0.6%) of the Group's total net sales.

Environment

The objectives of Componenta's quality, environmental and occupational health and safety policy are to fulfil customer requirements and to comply with all essential legal requirements relating to the environment, occupational health and safety. Componenta ensures that all its business locations have sufficient competent resources and relevant knowledge to be successful and continuously improves its own production processes to guarantee the best possible results. The programmes implemented for continuous improvement aim at achieving the principle of zero defects in quality, zero accidents and zero illness in health and safety, and at meeting agreed environmental targets.

Componenta is committed to continuous improvement and to reducing the environmental impact of its production. The most significant environmental aspects have been identified as the use of energy, preventing the creation of waste, and utilising waste instead of dumping it at waste disposal sites.

In 2015 the Group's production units used 657 GWh (666 GWh) of energy. Most of the energy used, 67% (68%), was electricity. The foundries consume more than 90 % of all the energy, since especially the melting processes at the foundries utilise much energy. In 2015 energy consumption in proportion to output at Componenta's iron foundries rose 3 %, which was due to the lower capacity utilisation rate.

Componenta uses recycled material for its raw material and correspondingly sends some of the waste it generates for beneficial reuse. In 2015 68% (71%) of the raw material used at the Group's iron foundries was recycled steel. 91% (60%) of the waste generated went for beneficial reuse. EUR 1.2 million of the total investments in 2015 went on reducing the environmental impact of production. The impact of the investments mainly at the Orhangazi foundry in Turkey in the previous year relating to the volume and treatment of waste was seen in 2015 as a higher proportion of the waste was sent for beneficial reuse. In 2015 waste costs were some EUR 1.5 million lower than in 2014.

Personnel

The Group had on average 4,281 (4,438) employees during the year, including 299 (326) leased employees. The number of Group personnel at the end of the period was 4,269 (4,238), which includes 290 (257) leased employees.

At the end of the year 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 end of the year

	31.12.2015	31.12.2014	Change
Turkey	2,642	2,600	2%
Finland	659	653	1%
Netherlands	547	559	-2%
Sweden	421	426	-1%

Personnel by division at the end of the end of the year

	31.12.2015	31.12.2014	Change
Foundry division	2,522	2,557	-1%
Machine shop division	421	410	3%
Aluminium division	911	831	10%
Other business (excl.
Group administration)	267	271	-1%
Group administration	148	169	-12%

Shares and share capital

The shares of Componenta Corporation are quoted on Nasdaq Helsinki. At the end of the financial year the company had a total of 97,269,224 (97, 269,224) shares and the company's share capital stood at EUR 21.9 (21.9) million. The quoted price on 31 December 2015 stood at EUR 0.69 (EUR 0.72). The average price during the year was EUR 0.82, the lowest price was EUR 0.63, and the highest EUR 1.13. At the end of the financial year the share capital had a market capitalization of EUR 66.6 (69.5) million and the volume of shares traded during the period was equivalent to 12.3% (21.6%) of the share stock.

Componenta terminated the Liquidity Providing (LP) agreement it made with Nordea Bank Finland Plc in 2005 on 27 May 2015. The company estimates that the liquidity of the share traded is sufficient and no longer requires an external provider of liquidity.

Flagging notices

On 25 March 2015 Componenta received notification in accordance with the Securities Markets Act according to which the holding of Tiiviste-Group Oy, in which Erkki Etola exercises control, in Componenta Corporation shares and voting rights had exceeded 5%, and at the same time the total holding of Etra Capital Oy and Tiiviste-Group Oy together, in which Erkki Etola exercises control, had exceeded 15% of all Componenta shares and voting rights.

As the result of these transactions, the holding of Tiiviste-Group Oy rose to 4,907,340 shares (previously 3,000,000 shares), which corresponds to 5.05% (previously 3.08%) of Componenta's shares and voting rights. At the same time the total holding of Etra Capital Oy and Tiiviste-Group Oy together, in which Erkki Etola exercises control, in Componenta shares and voting rights rose to 16,288,790 shares, or 16.75% (previously 14,381,450 shares, 14.79%).

Share-based incentive scheme 2015

The Board of Directors of Componenta Corporation resolved on 10 February 2015 on a new share-based incentive scheme for key personnel. The objective of the plan was to bring together the goals of the owners and key personnel so as to raise the value of the company, to commit key personnel to the company, and to offer them a competitive bonus scheme based on share ownership.

The scheme had one earning period, the 2015 calendar year. The earning criteria for the 2015 earning period was Componenta Group's result after financial items.

Any bonus for the 2015 earning period is paid as a combination of company shares and cash. The part to be paid in cash is intended to cover the taxes and tax-related costs incurred by key personnel from the bonus. Any shares paid in the incentive scheme

may not be disposed of during a restriction period of about two years. Should the employment of a key employee end during this restriction period, they shall return the shares given as a bonus without compensation.

At the end of 2015 the target group for the scheme comprised 12 people. The Board of Directors decided not to allocate any shares for the 2015 earning period. The scheme's impact on the Group's result before tax at the end of 2015 was therefore EUR 0.0 million. The bonuses which could have been paid for the 2015 earning period corresponded altogether at most to the value of about 780,000 Componenta Corporation shares, including the portion to be paid in cash.

Share issue and special rights entitling to shares

The Annual General Meeting of Componenta Corporation, held on 11 March 2015, authorised the Board of Directors to decide on a share issue and an issue of special rights entitling to shares for a maximum of 20,000,000 shares, in one or more instalments, either against payment or without payment. The Board of Directors may resolve either to issue new shares or to transfer any treasury shares held by the Company.

The authorisation, which is in force until the end of the next Annual General Meeting, however not later than 30 June 2016, entitles the Board of Directors to decide on all conditions for the share issue and the issue of special rights entitling to shares, including the right to derogate from the pre-emptive right of the shareholders. The authorisation may be used to strengthen the balance sheet and financial position of the company or for other purposes as decided by the Board of Directors.

Board of Directors and Management

The AGM on 11 March 2015 elected seven members to the Board of Directors: Olavi Huhtala, Olli Isotalo, Perttu Louhiluoto, Riitta Palomäki, Matti Ruotsala, Tommi Salunen and Harri Suutari. The Board elected Harri Suutari as Chairman of the Board and Matti Ruotsala as Vice Chairman of the Board

Harri Suutari resigned from the Board of Directors when he was appointed President and CEO of Componenta Corporation as from 16 November 2015. At the same time the Board elected Matti Ruotsala to be its new chairman and Olavi Huhtala as its new vice chairman.

The Board of Directors met 17 times in 2015. The average attendance rate for Board members at their meetings was 99%. The Board of Directors assessed their activities in 2015 under the leadership of the chairman in February 2016.

Componenta has an audit committee of the Board of Directors, and the Board elected Riitta Palomäki to be chairman of this audit committee and Olavi Huhtala and Tommi Salunen to be ordinary members. The audit committee met 5 times in 2015 and the average attendance rate for its members was 100%. The audit committee assessed its activities and way of working in 2015.

The AGM on 11 March 2015 resolved to establish a Nomination Board comprising shareholders or representatives of shareholders, with the task each year of preparing and presenting the proposals for members of the Board of Directors and their remuneration to be made to the following Annual General Meeting. Componenta's nomination board comprised Erkki Etola (shareholders Etra Capital Oy and Tiiviste-Group Oy)), Reima Rytsölä (shareholder Varma Mutual Pension Insurance Company), and Heikki Lehtonen (shareholders Heikki Lehtonen and companies in which he has a controlling interest Oy Högfors-Trading Ab and Cabana Trade SA). In addition, the chairman of Componenta's Board of Directors, Harri Suutari until 16 November 2015 and Matti Ruotsala from 16 November 2015, served as expert members of the Nomination Board. Reima Rytsölä was chairman of the Nomination Board. The Nomination Board met once and had an attendance rate of 100% at its meetings. The Nomination Board published its proposal on 22 January 2016.

Componenta's Corporate Executive Team from 1 January - 16 November 2015 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, HR and Internal Communications; Pauliina Rannikko, Senior Vice President, Legal and Risk Management; Maurice Ruiter, Senior Vice President, Quality and Engineering, Furio Scolario, Senior Vice President, Sales and Product Development and Sabri Özdogan, Senior Vice President, Aluminium Division. On 1 November 2015 Henri Berg became a member of the Corporate Executive Team when he was appointed CFO after Mika Hassinen became full-time managing director of Componenta BV with responsibility for the Group's operations in the Netherlands.

Heikki Lehtonen was President and CEO of Componenta until 16 November 2015. Componenta's Board of Directors appointed Harri Suutari as the new President and CEO as from 16 November 2015.

Markku Honkasalo started as CFO and member of the Corporate Executive Team on 14 December 2015.

At the end of 2015 Componenta Group's Corporate Executive Team comprised President and CEO Harri Suutari, Olli Karhunen, Senior Vice President, Foundry Division, Juha Alhonoja, Senior Vice President, Machine Shop Division, Sabri Özdogan, Senior Vice President, Aluminium Division, CFO Markku Honkasalo, Pauliina Rannikko, Senior Vice President, HR and Legal, and Furio Scolario, Senior Vice President, Sales, Global Accounts.

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 2015 financial statements.

Refinancing and liquidity risks

During the financial year the company failed to meet certain terms for the Nordic syndicated loan. At the end of December Componenta signed a standstill agreement with the Nordic partners in the syndicated loan agreement, whereby the lenders released Componenta from having to comply with certain terms of the loan for a fixed period. The agreement is in force until the end of April 2016 and it contains terms that are normal for agreements of this nature and that the company has to fulfil while the agreement is in force. As part of the strategy being drawn up, Componenta's Board of Directors has decided to initiate a review into ways of strengthening the company's financial position and balance sheet. The Group has long- and short-terms loans from financial institutions totalling EUR 143.9 million maturing in 2016 and EUR 24.9 million maturing in 2017. Failure to comply with certain terms of the syndicated loan agreement and cross default terms have resulted in several debt instalments, nominal amount of EUR 63.2 million, being classified as current in the company's balance sheet. The company's liquidity was tight at the end of 2015 and early in 2016, which has had a negative impact on the company's production operations. Negotiations with financial and other investment institutions have continued during the first months of the year.

Componenta is drawing up a program of measures to ensure the continuity of its operations and to strengthen its financial position. Negotiations with financial and other investment institutions have continued during the first months of the year 2016. The arrangements that are being sought form a total package, and if this comes into effect it will create an opportunity for the company to start to carry out its new strategy complying with the going concern principle. The financial arrangement is provisory and there are uncertainties about whether it will come into effect. The company has published an announcement concerning the progress of financial negotiations on 11 March 2016. The company aims to publish more details about the arrangements by 1 April 2016.

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 short- and long-term loan agreements with Turkish banks, lease financing, bonds, pension loans and capital notes.

Uncertainty factors relating to the financing arrangement actually taking place, which are described in the accounting principles for the financial statements and in Note 32.

Currency risk

According to Componenta's hedging policy for the transaction position, Componenta's currency denominated income and expense items in Turkey may be hedged in the range 0 - 100 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.

More detailed information about the risks to which Componenta is exposed and risk management is given in the notes to the 2015 financial statements.

Events after the end of period

Componenta announced on 5 February 2016 that is was postponing the publication date for its 2015 financial statements bulletin and only giving preliminary figures for the net sales and the result for the fourth quarter and the whole of 2015 on 9 February 2016. Preparation of the company's strategy relating to the reorganisation of operations and negotiations on a financing solution were still in progress, which affected the preparation of the 2015 financial statements. At the same time the company announced that it would publish the financial statements bulleting and the financial statements on 11 March 2016.

On 3 March 2016 Componenta announced that it was clarifying its management structure as part of its ongoing strategy work. The new management structure replaces the previous division structure by dividing operations into five business areas : the Finnish

business area, the Swedish business area, the Netherlands business area, the Turkey, iron business area and the Turkey, aluminium business area. The business areas comprise the business units. ie. the local foundries, machine shops and forges, including the sales companies.

In consequence of this change in the business structure, as from 3 March 2016, the Componenta Group Corporate Executive Team comprises the following : President and CEO Harri Suutari, Juha Alhonoja, Senior Vice President, Sweden business area; Seppo Erkkilä, Senior Vice President, Finland business area; Mika Hassinen, Senior Vice President, Netherlands business area; Pasi Mäkinen, Senior Vice President, Turkey, iron business area; and Sabri Özdogan, Senior Vice President, Turkey, aluminium business area; as well as CFO Markku Honkasalo, Pauliina Rannikko, Senior Vice President, HR and Legal, and Sami Sivuranta, Senior Vice President, Development. No deputy has been appointed to the president and CEO. Mika Hassinen previously held this position.

Another consequence of clarifying the management structure is that the reporting segments have also changed. The new reporting segments for Componenta Group are the aluminium business and the iron business, and Componenta is reporting in accordance with this new structure as from 1 January 2016. The iron business includes Componenta's iron foundries and machine shops in Finland, Sweden, the Netherlands and Turkey. It also includes pistons manufacturer Pistons in Finland and the Wirsbo forges in Sweden. The aluminium business includes the aluminium foundry and the wheels production unit in Turkey. Comparative data in accordance with the new reporting segments will be published before the January - March interim report.

Componenta published an announcement about the progress of financial negotiations on 11 March 2016.

Business environment in 2016

Demand prospects in all the Group's customer sectors remain uncertain.

The order book for Componenta's heavy trucks customer sector was 20% lower at the beginning of 2016 than at the same time in the previous year. Demand in the truck industry in Europe is expected to rise in 2016.

The order book for Componenta's construction and mining customer sector at the beginning of 2016 was 17% lower than at the same time in the previous year. The weaker prospects for

economic growth in China have brought down raw material prices in recent months, and this has weakened demand for investment in the construction and mining industries. Total demand in construction and mining is expected to fall below that in the previous year.

The order book for Componenta's machine building customer segment was 6% lower at the beginning of 2016 than at the same time in the previous year.

The order book for Componenta's agricultural machinery customer sector was 17% lower at the beginning of 2016 than at the same time in the previous year. Weak market conditions mean that demand is expected to continue to decline in 2016.

The order book for Componenta's automotive customer sector was 1% lower at the beginning of 2016 than at the same time in the previous year. Demand in 2016 is estimated to improve from the previous year.

Componenta's earnings guidance for 2016

Due to the financial situation of the company and the structural changes currently taking place, giving earnings guidance is exceptionally challenging. Because of this, Componenta is not for the time being making forecasts about its financial performance when commenting on its prospects.

Dividend proposal

On 31 December 2015 the parent company had distributable equity of EUR 58.1 (204.1) million. The Board of Directors proposes to the Annual General Meeting to be held on 1 April 2016 that no dividend be paid for the 1 January - 31 December 2015 financial period.

Annual General Meeting

Componenta Corporation's Annual General Meeting of Shareholders will be held at 10.00 am on 1 April 2016 in Helsinki. Notice of the annual general meeting will be published in a separate stock exchange release.

2015 Annual Report and Corporate Governance Statement

The 2015 Annual Report, including the Report of the Board of Directors and the financial statements, as well as the separate Componenta Corporate Governance Statement for 2015 will be published on 11 March 2015 on Componenta's internet website at www.componenta.com.

Helsinki, 11 March 2016

COMPONENTA CORPORATION Board of Directors

Accounting principles

In these financial statements Componenta has applied the same accounting principles for consolidated financial statements 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. Financial Statements Bulletin is unaudited.

Insider transactions

There were no sales to associated companies during the reporting periods and purchase from the associated companies amounted to EUR 0.1 (EUR 0.5) million.

Management of financial risks

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.

Assumption of ability to continue as a going concern

The financial statements for the 2015 fiscal year have been prepared on the going concern basis. When assessing the going concern principle, company management has taken into account the company's strategy that is being updated and related forecasts as well as the sources of finance available and the refinancing and liquidity risks.

Despite its excellent customers and skilled personnel, and in spite of many measures taken and efforts to improve, Componenta's financial performance has fallen short of its targets in the past few years, due to poorer developments than expected in productivity, high quality related costs, and tight liquidity over a long period. On top of this, the targeted cost savings have not been achieved as expected. The poorer financial performance than planned has resulted in the company's liquidity and working capital being tight at the end of 2015 and in early 2016, and in uncertainty about the sufficiency of working capital in 2016. The tight liquidity situation has also had a negative impact on the company's production operations.

In November 2015 the company's Board of Directors changed the CEO of the company, prepared new strategical alignment and started to initiate changes, and progress will be made step by step with these until the company's profitability is brought in line with its targets. The main guidelines for the new strategy were published in December 2015 and it has the goal of a clear improvement in profitability. In future Componenta will focus on medium volume product series in iron castings and on aluminium castings production and also aims to raise the capacity utilization rates at all its production plants. Typical customers for medium volume product series are global players in the truck, agricultural machinery, construction and mining industries. The new aluminium foundry in Manisa, Turkey comes into operation in 2016 and this will for its part strengthen Componenta's position as a supplier to the automotive industry. Concentrating the production of iron castings in most competitive business units in line with the new strategy being drawn up may reduce the Group's production capacity in some business units. The impact of the strategy on customers and suppliers will be assessed during 2016, when any changes in capacity will also be announced. There are technical challenges in connection with concentrating production and transferring the production of individual products, and for this reason the planning and execution of product transfers will take time. Reserve stocks of the products being transferred also need to be built up, so that Componenta can safeguard deliveries to customers. In 2016 most of investments will be targeted on the aluminium foundry in Turkey and in 2017-2018 most of the Group's investments will be carried out at the iron foundry in Orhangazi, Turkey.

The Group has long- and short-term loans from financial institutions of EUR 143.9 million maturing in 2016 and EUR 24.9 million maturing in 2017, and it is not completely certain that the company will be able to refinance these loans. The Group reports to the banks behind the Nordic syndicated loan and to the banks providing the club loan to the Turkish subsidiary on the finance covenants defined in the terms of the loan agreements. The finance covenants relate to investments, and to key figures calculated on the basis of the equity

ratio, interest-bearing debt, EBITDA and the debt service coverage ratio. Componenta announced on 4 December 2015 that it had started negotiations relating to the Nordic syndicated loan agreement, since the company does not comply with certain terms of the agreement. As a result of these negotiations, on 30 December 2015 Componenta signed a standstill agreement with the parties to the syndicated loan, whereby the lenders released Componenta from having to meet these terms of the loan for a fixed period. The agreement is in force until the end of April 2016 and it contains normal terms for agreements of this nature that the company has to comply with while the agreement is in force. More details are given in financial statements Note 32.

The company has continued negotiations during 2016 to find a financial solution to ensure the strengthening of its financial position and balance sheet. The objective of the new financing arrangements is to ensure the company has sufficient working capital in 2016, and to ensure the sufficient financing to carry out the strategic actions and sufficient funds for the servicing fees for the agreed loans and for the repayment instalments. Negotiations with financial and other investment institutions are still continuing.

Significant uncertainty factors relate to the company's liquidity situation and to the success of the measures described above to reorganise business operations and the financing arrangements, and company management has taken these factors into account when assessing the ability of the company to continue as a going concern. Should the refinancing arrangements that are being negotiated not take place, the company will not have sufficient working capital for the needs of the next 12 months. Should the arrangements described above not take place on a sufficient scale, the company may not be able to realise its assets and pay its debts as part of normal business. In the view of the company, it is however probable that the refinancing will be arranged. The impact of the measures in the reorganisation of business operations arising from the strategy being drawn up, and the inherent uncertainty factors relating to them, have been taken into account in the presentation of balance sheet items. The company has recorded significant write-down losses on material fixed assets and deferred tax assets. In addition, failure to comply with certain terms of the syndicated loan agreement and cross default terms have resulted in several debt instalments being classified as current in the company's balance sheet. Should it prove in the foreseeable future that basing the financial statements on the going concern principle is not justified, the carrying values and/or classification of the company's assets and liabilities would have to be altered.

Reconciliation of consolidated operating profit

MEUR	1.1.-31.12.2015		1.1.-31.12.2014 1.10.-31.12.2015 1.10.-31.12.2014
Operating profit excluding one-time items and operative exchange rate differences	6.0	17.8	-4.2	1.2
Operative exchange rate differences	1.0	-2.7	-2.1	-1.0
Operating profit excluding one-time items	7.0	15.1	-6.3	0.1
One-time items	-30.5	-12.9	-28.1	-9.1
Operating profit, IFRS	-23.4	2.2	-34.3	-9.0

Reconciliation of consolidated result after financial items

MEUR	1.1.-31.12.2015		1.1.-31.12.2014 1.10.-31.12.2015 1.10.-31.12.2014
Result after financial items excluding one-time items and
operative exchange rate differences	-19.4	-9.5	-11.6	-4.9
Operative exchange rate differences	1.0	-2.7	-2.1	-1.0
Result after financial items excluding one-time items	-18.4	-12.2	-13.7	-5.9
One-time items	-30.5	-16.5	-28.1	-9.5
Result after financial items, IFRS	-48.9	-28.7	-41.8	-15.4

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

MEUR	1.1.-31.12.2015		1.1.-31.12.2014 1.10.-31.12.2015 1.10.-31.12.2014
Net sales	494.8	495.2	119.2	119.6
Other operating income	1.5	2.1	0.5	0.8
Operating expenses	-472.5	-461.5	-119.6	-115.0
Depreciation, amortization and write-downs	-17.9	-18.1	-4.4	-4.3
Share of the associated companies' result	0.1	0.1	0.0	0.0
Operating profit	6.0	17.8	-4.2	1.2
% of net sales	1.2	3.6	-3.5	1.0
Financial income and expenses	-25.4	-27.3	-7.4	-6.0
Result after financial items	-19.4	-9.5	-11.6	-4.9
% of net sales	-3.9	-1.9	-9.7	-4.1
Income taxes	0.1	-2.3	3.6	-2.4
Net profit	-19.3	-11.8	-8.0	-7.2
Allocation of net profit for the period
To equity holders of the parent	-19.6	-12.5	-7.8	-7.1
To non-controlling interest	0.4	0.6	-0.2	-0.1
	-19.3	-11.8	-8.0	-7.2
Earnings per share calculated on the profit
attributable to equity holders of the parent
Earnings per share, EUR	-0.20	-0.30	-0.08	-0.07

Consolidated income statement

MEUR	1.1.-31.12.2015		1.1.-31.12.2014 1.10.-31.12.2015 1.10.-31.12.2014
Net sales	494.8	495.2	119.2	119.6
Other operating income	2.6	-0.1	-1.6	0.1
Operating expenses	-484.3	-470.1	-128.9	-119.9
Depreciation, amortization and write-downs	-36.6	-22.9	-23.1	-8.9
Share of the associated companies' result	0.1	0.1	0.0	0.0
Operating profit	-23.4	2.2	-34.3	-9.0
% of net sales	-4.7	0.4	-28.8	-7.5
Financial income and expenses	-25.4	-30.9	-7.4	-6.4
Result after financial items	-48.9	-28.7	-41.8	-15.4
% of net sales	-9.9	-5.8	-35.0	-12.9
Income taxes	-33.8	0.2	-31.8	-1.9
Net profit	-82.7	-28.6	-73.6	-17.3
Allocation of net profit for the period
To equity holders of the parent	-83.1	-29.2	-73.4	-17.2
To non-controlling interest	0.4	0.6	-0.2	-0.1
	-82.7	-28.6	-73.6	-17.3
Earnings per share calculated on the profit
attributable to equity holders of the parent
Earnings per share, EUR	-0.86	-0.63	-0.76	-0.18
Earnings per share with dilution, EUR	-0.86	-0.63	-0.76	-0.18

Consolidated statement of comprehensive income

MEUR	1.1.-31.12.2015		1.1.-31.12.2014 1.10.-31.12.2015 1.10.-31.12.2014
Net profit	-82.7	-28.6	-73.6	-17.3
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Revaluation of buildings and land areas	-8.8	0.0	-8.8	0.0
Items that may be reclassified subsequently to profit or loss
Translation differences	-0.6	0.4	-0.5	0.3
Actuarial gains and losses	-2.1	-1.0	-0.4	-0.5
Cash flow hedges	0.0	0.4	0.3	-0.1
Other items	0.0	0.0	0.1	0.1
Total items that may be reclassified to profit or loss subsequently	-2.7	-0.2	-0.6	-0.2
Income tax on other comprehensive income	2.0	0.1	1.6	0.1
Other comprehensive income, net of tax	-9.5	-0.1	-7.8	-0.1
Total comprehensive income	-92.2	-28.6	-81.4	-17.4
Allocation of total comprehensive income
To equity holders of the parent	-92.1	-29.2	-80.8	-17.3
To non-controlling interest	-0.1	0.6	-0.6	-0.1
	-92.2	-28.6	-81.4	-17.4

Consolidated statement of financial position

MEUR	31.12.2015	31.12.2014
Assets
Non-current assets
Intangible assets	7.1	8.2
Goodwill	29.2	29.1
Investment properties	8.1	8.3
Tangible assets	234.3	251.5
Investment in associates	1.2	1.2
Receivables	7.8	1.4
Other investments	0.9	0.9
Deferred tax assets	5.5	37.4
Total non-current assets	294.1	338.0
Current assets
Inventories	68.9	75.0
Receivables	31.7	43.5
Tax receivables	1.4	0.2
Cash and cash equivalents	6.1	12.1
Total current assets	108.2	130.8
Total assets	402.2	468.9
Shareholders' equity and liabilities
Shareholders' equity
Share capital	21.9	21.9
Other equity	-10.8	81.2
Equity attributable to equity holders of the parent company	11.1	103.1
Non-controlling interest	7.6	8.0
Shareholders' equity	18.6	111.2
Liabilities
Non-current
Capital loans	-	0.0
Interest bearing	87.3	159.1
Interest free	0.3	0.1
Provisions	10.4	9.7
Deferred tax liability	10.8	12.9
Current
Capital loans	-	2.0
Interest bearing	155.7	67.1
Interest free	110.0	102.2
Tax liabilities	2.0	0.1
Provisions	7.0	4.5
Total liabilities	383.6	357.7
Total shareholders' equity and liabilities	402.2	468.9

Condensed consolidated cash flow statement

MEUR	1.1.-31.12.2015	1.1.-31.12.2014
Cash flow from operating activities
Result after financial items	-48.9	-28.7
Depreciation, amortization and write-downs	36.6	22.9
Net financial income and expenses	25.4	30.9
Other income and expenses, adjustments to cash flow	-1.8	-0.8
Change in net working capital	21.6	-16.8
Cash flow from operations before financing and income taxes	33.0	7.5
Interest received and paid and dividends received	-22.1	-25.7
Taxes paid	-0.6	-2.4
Net cash flow from operating activities	10.3	-20.6
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired	-	-0.3
Capital expenditure in tangible and intangible assets	-28.6	-16.2
Proceeds from tangible and intangible assets	0.4	2.9
Other investments and loans granted	0.0	0.0
Proceeds from other investments and repayments of loan receivables	1.4	0.3
Net cash flow from investing activities	-26.8	-13.4
Cash flow from financing activities
Dividends paid	-0.4	-
Proceeds from share issue	-	28.4
Expenses of share issue	-	-1.9
Repayment of finance lease liabilities	-4.0	-4.1
Draw-down (+)/ repayment (-) of current loans	5.3	33.4
Draw-down of non-current loans	26.4	7.0
Repayment of non-current loans and other changes	-16.8	-26.8
Net cash flow from financing activities	10.5	36.0
Change in liquid assets	-6.0	2.0
Cash and cash equivalents at the beginning of the period	12.1	10.2
Effects of exchange rate changes on cash	0.0	0.0
Cash and cash equivalents at the period end	6.1	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						-29.2	-29.2	0.6	-28.6
Translation differences					0.4		0.4	0.0	0.4
Actuarial gains and losses						-0.8	-0.8	0.0	-0.8
Cash flow hedges				0.3			0.3		0.3
Revaluation of buildings and land areas			-0.4			0.4	0.0		0.0
Other comprehensive income items			0.0				0.0		0.0
Total comprehensive income			-0.4	0.3	0.4	-29.6	-29.2	0.6	-28.6
Interest, hybrid bond						-3.8	-3.8		-3.8
Share issue			58.6				58.6		58.6
Minority share acquisition						-0.3	-0.3		-0.3
Shareholders' equity 31.12.2014	21.9	15.0	179.5	-0.4	-36.3	-76.5	103.1	8.0	111.2

					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						-83.1	-83.1	0.4	-82.7
Translation differences					-0.6		-0.6	0.0	-0.6
Actuarial gains and losses						-1.4	-1.4	-0.1	-1.5
Cash flow hedges				0.0			0.0		0.0
Revaluation of buildings, land areas and
investment properties			-7.0		0.0	0.0	-7.0	-0.3	-7.4
Other comprehensive income items			0.0				0.0		0.0
Total comprehensive income			-7.0	0.0	-0.6	-84.4	-92.1	-0.1	-92.2
Dividend							0.0	-0.4	-0.4
Shareholders' equity 31.12.2015	21.9	15.0	172.5	-0.4	-37.0	-160.9	11.1	7.6	18.6

Key Ratios

	31.12.2015	31.12.2014
Equity ratio, %	4.6	23.7
Equity per share, EUR	0.11	1.06
Invested capital at period end, MEUR	261.7	339.3
Return on investment, excl. one-time items and operative exchange rate differences, %	2.0	5.6
Return on investment, %	-7.2	0.8
Return on equity, excl. one-time items and operative exchange rate differences, %	-21.6	-12.1
Return on equity, %	-92.6	-29.1
Net interest bearing debt, preferred capital note in debt, MEUR	237.0	216.0
Net gearing, preferred capital note in debt, %	1,273.0	194.4
Order book, MEUR	76.9	88.9
Investments in non-current assets excl. finance leases, MEUR	26.2	16.4
Investments in non-current assets incl. finance leases, MEUR	31.5	22.6
Investments in non-current assets (incl. finance leases), % of net sales	6.4	4.6
Average number of personnel during the period	3,982	4,111
Average number of personnel during the period, incl. leased personnel	4,281	4,438
Number of personnel at period end	3,979	3,981
Number of personnel at period end, incl. leased personnel	4,269	4,238
Share of export and foreign activities in net sales, %	91.3	91.7
Contingent liabilities, MEUR	746.3	662.4

Per Share Data

	31.12.2015	31.12.2014
Number of shares at period end, 1,000 shares	97,269	97,269
Earnings per share (EPS), EUR	-0.86	-0.63
Earnings per share, with dilution (EPS), EUR	-0.86	-0.63
Cash flow per share, EUR	0.11	-0.40
Equity per share, EUR	0.11	1.06
Dividend per share, EUR	0.00*)	0.00
Payout ratio, %	0.00	0.00
Effective dividend yield, %	0.00	0.00
P/E multiple	neg.	neg.
Share price at period end, EUR	0.69	0.72

*) For year 2015 a proposal of the Board of Directors.

Changes in tangible assets and goodwill

MEUR	1-12/2015	1-12/2014
Changes in tangible assets
Acquisition cost at the beginning of the period	571.2	561.3
Translation differences	1.7	-4.7
Additions	30.0	22.0
Companies acquired	0.0	0.0
Revaluation of buildings and land areas	-11.9	0.0
Disposals and transfers between items	-4.9	-7.4
Acquisition cost at the end of the period	586.1	571.2
Accumulated depreciation at the beginning of the period	-319.7	-308.0
Translation differences	-1.3	2.6
Accumulated depreciation on disposals and transfers	2.7	5.5
Accumulated depreciation on companies acquired	0.0	0.0
Depreciation, amortization and write-downs during the period	-33.5	-19.9
Accumulated depreciation at the end of the period	-351.7	-319.7
Book value at the end of the period	234.3	251.5
Goodwill
Acquisition cost at the beginning of the period	29.1	29.1
Translation difference	0.0	0.0
Book value at the end of the period	29.2	29.1

Group development

Net sales by market area

MEUR	1-12/2014	1-12/2015
Germany	103.1	105.9
Sweden	89.1	86.0
Turkey	60.6	69.0
Finland	41.0	43.0
Benelux countries	40.2	40.5
UK	45.1	36.8
Italy	30.9	30.2
France	30.5	27.3
Other European countries	20.8	21.3
Other countries	33.9	34.8
Total	495.2	494.8

Quarterly net sales development by market area

MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15	Q4/15
Germany	28.2	26.0	22.8	26.1	29.4	26.9	23.0	26.6
Sweden	25.3	25.8	17.7	20.3	23.7	25.4	17.5	19.4
Turkey	15.4	14.0	14.0	17.2	18.2	17.9	14.0	19.0
Finland	12.1	11.1	8.3	9.5	11.9	11.5	8.2	11.4
Benelux countries	10.3	10.4	9.2	10.3	10.4	11.6	9.1	9.4
UK	12.2	12.7	10.3	9.9	10.0	9.9	10.8	6.2
Italy	6.9	8.9	9.5	5.6	7.5	8.0	9.2	5.6
France	8.1	8.9	6.0	7.4	7.3	7.1	5.8	7.1
Other European countries	5.1	5.7	5.4	4.6	5.8	5.8	5.5	4.3
Other countries	8.2	9.1	7.8	8.7	9.1	8.0	7.5	10.2
Total	131.9	132.6	111.0	119.6	133.1	132.0	110.5	119.2

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

MEUR 1-12/2014	1-12/2015
Net sales 495.2	494.8
Operating profit 17.8	6.0
Net financial items *) -27.3	-25.4
Profit after financial items -9.5	-19.4

*) 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	1-12/2015
Foundry division	5.3	-4.9
Machine shop division	3.8	1.6
Aluminium division	8.2	12.0
Other business	0.7	-2.8
Internal items	-0.2	0.1
Componenta total	17.8	6.0

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	Q4/15
Net sales	131.9	132.6	111.0	119.6	133.1	132.0	110.5	119.2
Operating profit	7.4	7.9	1.3	1.2	5.8	3.9	0.5	-4.2
Net financial items *)	-7.5	-7.0	-6.8	-6.0	-5.3	-6.2	-6.5	-7.4
Profit after financial items	-0.1	0.9	-5.5	-4.9	0.5	-2.3	-6.0	-11.6

*) 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	Q4/15
Foundry division	3.8	3.8	-1.0	-1.2	2.0	1.6	-3.1	-5.4
Machine shop division	0.9	1.9	0.8	0.2	0.8	0.3	0.6	-0.1
Aluminium division	2.4	2.2	1.8	1.8	2.6	2.3	3.1	4.0
Other business	0.3	0.2	-0.2	0.4	0.4	-0.4	-0.2	-2.7
Internal items	0.0	-0.2	0.0	-0.1	0.0	0.1	0.1	-0.1
Componenta total	7.4	7.9	1.3	1.2	5.8	3.9	0.5	-4.2

Group development

MEUR	1-12/2014	1-12/2015
Net sales	495.2	494.8
Operating profit	2.2	-23.4
Net financial items *)	-30.9	-25.4
Profit after financial items	-28.7	-48.9

*) Net financial items are not allocated to business segments

Group development by business segment

Net sales, MEUR	1-12/2014	1-12/2015
Foundry Division
External sales	212.0	212.9
Internal sales	95.7	80.8
Total sales	307.8	293.6
Machine Shop Division
External sales	109.6	113.9
Internal sales	12.1	10.2
Total sales	121.7	124.2
Aluminium Division
External sales	72.4	84.5
Internal sales	7.1	8.5
Total sales	79.5	93.0
Other Business
External sales	101.2	83.5
Internal sales	28.7	26.4
Total sales	129.9	109.9
Internal items	-143.7	-125.9
Componenta total	495.2	494.8
Operating profit, MEUR	1-12/2014	1-12/2015
Foundry division	3.7	-5.2
Machine shop division	3.2	2.5
Aluminium division	7.9	12.3
Other business	0.5	-2.8
One-time items	-12.9	-30.5*)
Internal items	-0.2	0.2
Componenta total	2.2	-23.4

*) One-time items in 2015 relate to the restructuring measures at the units in the Netherlands (EUR -3.3 million), to write-downs on machinery and equipment and buildings at the units in the Netherlands (EUR -4.2 million) and write-downs on receivables and inventories at the units in the Netherlands (EUR -0.8 million), write-downs on machinery and equipment (EUR -9.3 million) and write-downs on buildings (EUR -4.6 million) at the units in Finland, write-downs on investment property in Finland (EUR -1.3 million), costs relating to the transfer of production from the Pietarsaari foundry to the Pori foundry (EUR -0.9 million), the closure related costs of the Smedjebacken forge in Sweden (EUR -1.3 million), restructuring measures and extra waste disposal costs at the Orhangazi foundry (EUR -2.4 million), write-downs on overdue receivables at the units in Turkey (EUR -0.6 million) and write-downs for projects that have been terminated (EUR -1.1 million). Other one-time items totalled EUR -0.7 million.

Group development by quarter

MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15	Q4/15
Net sales	131.9	132.6	111.0	119.6	133.1	132.0	110.5	119.2
Operating profit	6.5	5.5	-0.8	-9.0	4.4	5.7	0.8	-34.3
Net financial items *)	-7.5	-7.0	-10.0	-6.4	-5.3	-6.2	-6.5	-7.4
Profit after financial items	-1.0	-1.5	-10.8	-15.4	-0.9	-0.5	-5.8	-41.8

*) 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	Q4/15
Foundry division	84.6	83.1	70.9	69.2	81.4	76.9	65.9	69.5
Machine shop division	30.4	33.1	26.8	31.5	33.5	33.7	26.8	30.3
Aluminium division	18.1	19.7	20.7	21.0	22.2	25.2	22.8	22.8
Other business	36.0	34.2	28.5	31.2	31.8	30.6	23.2	24.2
Internal items	-37.1	-37.5	-35.8	-33.2	-35.8	-34.3	-28.3	-27.5
Componenta total	131.9	132.6	111.0	119.6	133.1	132.0	110.5	119.2
Operating profit, MEUR	Q1/14	Q2/14	Q3/14	Q4/14	Q1/15	Q2/15	Q3/15	Q4/15
Foundry division	4.0	3.1	-1.7	-1.7	1.4	3.2	-1.9	-7.8
Machine shop division	0.8	1.6	0.8	0.0	1.0	0.6	0.3	0.6
Aluminium division	2.3	2.3	1.7	1.6	2.4	2.8	3.4	3.6
Other business
	0.3	0.1	-0.2	0.3	0.5	-0.4	-0.3	-2.7
One-time items	-0.9	-1.5	-1.4	-9.1	-1.0*)	-0.5*)	-0.8*)	-28.1*)
Internal items	0.0	-0.2	0.0	-0.1	0.1	0.1	0.1	-0.1

*) One-time items in 2015 relate to the restructuring measures at the units in the Netherlands (EUR -3.3 million), to write-downs on machinery and equipment and buildings at the units in the Netherlands (EUR -4.2 million) and write-downs on receivables and inventories at the units in the Netherlands (EUR -0.8 million), write-downs on machinery and equipment (EUR -9.3 million) and write-downs on buildings (EUR -4.6 million) at the units in Finland, write-downs on investment property in Finland (EUR -1.3 million), costs relating to the transfer of production from the Pietarsaari foundry to the Pori foundry (EUR -0.9 million), the closure related costs of the Smedjebacken forge in Sweden (EUR -1.3 million), restructuring measures and extra waste disposal costs at the Orhangazi foundry (EUR -2.4 million), write-downs on overdue receivables at the units in Turkey (EUR -0.6 million) and write-downs for projects that have been terminated (EUR -1.1 million). Other one-time items totalled EUR -0.7 million.

Order book at period end, MEUR	Q1/14	Q2/14***)	Q3/14	Q4/14**)	Q1/15*)	Q2/15	Q3/15	Q4/15
Foundry division	55.3	54.4	42.3	49.2	51.9	56.5	45.8	43.1
Machine shop division	23.2	25.2	19.0	22.1	22.8	26.4	21.0	21.0
Aluminium division	14.1	15.3	14.4	15.9	17.2	18.1	16.5	14.4
Other business	21.0	23.2	18.9	17.7	17.2	19.4	13.3	14.4
Internal items	-22.9	-23.2	-15.5	-16.0	-16.8	-23.5	-14.4	-16.2
Componenta total	90.7	94.8	79.1	88.9	92.3	96.8	82.1	76.9

*) Order book on 6 April 2015

**) Order book on 8 January 2015

***) Order book on 4 July 2014

Business segments

MEUR	31.12.2015	31.12.2014
Foundry division
Assets	242.0	271.0
Liabilities	76.3	75.4
Investments in non-current assets (incl. finance leases)	8.3	12.4
Depreciation, amortization and write-downs	21.5	12.3
Machine shop division
Assets	60.4	67.8
Liabilities	49.6	39.9
Investments in non-current assets (incl. finance leases)	4.6	6.0
Depreciation, amortization and write-downs	3.9	3.5
Aluminium division
Assets	72.2	51.5
Liabilities	21.2	5.5
Investments in non-current assets (incl. finance leases)	16.8	2.8
Depreciation, amortization and write-downs	3.1	2.9
Other business
Assets	67.2	78.1
Liabilities	52.4	50.9
Investments in non-current assets (incl. finance leases)	1.9	1.5
Depreciation, amortization and write-downs	8.2	4.2

Fair values of derivative instruments

		31.12.2015		31.12.2014
	Fair value,	Fair value,	Fair value,	Fair value,
MEUR	positive	negative	net	net
Currency derivatives
Foreign exchange forwards	-	-0.2	-0.2	0.0
Currency swaps	-	-0.4	-0.4	0.4
Interest rate derivatives
Interest rate swaps	-	-	-	-0.1
Commodity derivatives
Electricity price forwards	0.0	-0.8	-0.8	-0.7
Total	0.0	-1.4	-1.4	-0.3

Nominal values of derivative instruments

	31.12.2015	31.12.2014
MEUR	Nominal value	Nominal value
Currency derivatives *)
Foreign exchange forwards	7.5	0.1
Currency swaps	9.8	54.3
Foreign exchange options	-	-
Interest rate derivatives
Interest rate swaps
Maturity in less than a year	-	5.0
Maturity after one year and less than five years	-	-
Commodity derivatives
Electricity price forwards
Maturity in less than a year	1.3	2.4
Maturity after one year and less than five years	1.7	1.9
Total	20.3	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 Q4 / 2015

MEUR	LEVEL 1	LEVEL 2	LEVEL 3
Foreign exchange rate derivatives (OTC)	-	-0.6	-
Interest rate derivatives (OTC)	-	-	-
Commodity derivatives	-0.8	-	-
Available-for-sale investments	-	-	0.8

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	31.12.2015	31.12.2014
Real-estate mortgages
For own debts	8.1	11.2
Business mortgages
For own debts	114.5	103.4
Pledges
For own debts	458.2	541.4
Other leasing commitments	4.1	5.3
Other commitments	1.2	1.3
Total	586.0	662.4

On 31 December 2015 Componenta had contingent financial leasing liabilities, from not yet started contracts, amounting to EUR 3.7 million (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	31.12.2015	31.12.2014	31.12.2015	31.12.2014
SEK	9.1895	9.3930	9.3528	9.0985
USD	1.0887	1.2141	1.1095	1.3285
GBP	0.7340	0.7789	0.7259	0.8061
TRY (Turkish central bank)	3.1776	2.8207	3.0167	2.9049
RUB	80.6736	72.3370	68.1066	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, %	= Profit after financial items + interest and other financial expenses x 100
(ROI)	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,	= Profit after financial items – income taxes +/- non-controlling interest - deferred and paid interest on hybrid loan
EUR (EPS)	Average number of shares during the financial period
Earnings per share	= As above, the number of shares has been increased with the possible warrants outstanding. When calculating
with dilution, EUR	the dilution effect of warrants, the number of shares has been adjusted with the number of own shares which
	the company could have acquired, if it would have used the funds generated from the warrants to buy back of
	own shares at market price (= average trading price). After tax interest expense of the possible convertible loan has been added to the profit of the period. Number of shares that can be subscribed by the loan has been added
	to the number of total shares.
Cash flow per share, EUR (CEPS)	= Net cash flow from operating activities Average number of shares during the financial period
Average trading price, EUR	= Trading volume
	Number of shares traded during the financial period
Equity per share, EUR	= Shareholders' equity, preferred capital notes excluded Number of shares at period end
Dividend per share, EUR	= Dividend
	Number of shares at period end
	= Dividend x 100
Payout ratio, %	Earnings (as in Earnings per share)
Effective dividend yield, %	= Dividend per share x 100 Market share price at period end
	Market capitalization, MEUR = Number of shares x market share price at period end
P/E multiple	= Market share price at period end Earnings per share
Net interest bearing debt,	= Interest bearing liabilities + preferred capital notes - cash and bank accounts
MEUR
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

31

Componenta Oyj

Panuntie 4 00610 Helsinki Puh. 010 403 00 Faksi 010 403 2721 www.componenta.com