YLIMÄÄRÄINEN YHTIÖKOKOUS Heikki Lehtonen toimitusjohtaja 1
Our Broad Customer Base Supports Stability and Innovation 15% 31% 17% 19% 18% 18% 19% 17% 31% 15% Automotive Heavy Trucks Agricultural Construction Machinery and Mining Machine Building Machine Building Construction and Agricultural Mining Machinery Heavy Trucks Automotive 2
Our Value-Adding Supply Chain Forms a Key Competitive Edge Engineering Services Co-operation with key customers from product development through manufacturing. Inventory, customer service and logistics Customers Sourcing Product Development and Co-design Manufacturing Inventory, Customer Service and Logistics Distribution and Customers sales Just-In-Time ( JIT ) deliveries Logistics/warehouse in 9 locations in 7 countries Customer service centers in 11 locations in 10 countries Heavy Trucks Construction & Mining Machine Building Agriculture Automotive Foundry Division Iron foundries (#5) Aluminium Division Aluminium Foundry Aluminium Wheels Machine Shop Division Machining Surface treatment Painting Pre-assembly Machined Iron Aluminium Components Blank Components Other business Forges 3
Shifting Production to Low Cost Location Continuous shift to Turkey significantly improves cost structure 100% Revenue Breakdown Europe vs Turkey 60% Development of Iron Production Volumes in Turkey 90% 80% 70% 60% 64% 62% 55% 52% 52% 53% 50% 40% 43% 42% 48% 54% 56% 56% 50% 30% 40% 30% 20% 20% 10% 36% 38% 45% 48% 48% 47% 10% 0% 4 2008A 2009A 2010A 2011A 2012A 2013A Turkey EU 0% 2008A 2009A 2010A 2011A 2012A 2013A Turkey (% of iron foundries production)
COMPONENTA S CYCLE OF SUCCESS 5
Componenta s Cycle of Success Experienced Management Team with Strong Track Record Industry Leading Player in Target Markets Flexible Cost Structure Supported By Well Invested Asset Base Specialised Business Model with High Barriers to Entry Well Positioned to Capitalize on Favourable Industry Trends Long-term, sticky Relationships with Blue-Chip Customer Base Balanced and Diversified Business 6
Industry Leading Player in Target Markets Componenta is the European market leader for small-mid series, complex iron castings Position in European Iron Castings Target Market (Revenue in m) (1) FY 2013 (2) FY 2012 (3) FY 2011 7 Componenta Georg Fischer Georgsmarienhütte SLR Group Gienanth SHW Vald.Birn 1700 Foundaries (1) (2) (2) (2) (3) (2) Componenta s Position Focus on complex, safety critical parts 0 200 400 600 800 Significant scale advantage vs regional players drives increased profitability 445 #1 One of few preferred suppliers with whom customers seek to concentrate their sourcing 709 across product categories More competitive bundled offering 431 Reduced sourcing complexity Nonautomotive A certified supplier ensuring best practices 175 and quality control Full service development partner with 157 119 Multinational operations and global delivery capability differentiated high value added product offering Market fragmentation creates opportunity to 78 take share from smaller players Non profitable foundries gradually exiting c.10(average size) market Unable to compete effectively in high-end segment Focus on Small / Medium Batch Sizes (Non-Automotive: Heavy Trucks, Agriculture, Machine Building, Construction & Mining) Focus on Large Batch Sizes (Automotive) (1)
Specialised Business Model with High Barriers to Entry 8
Specialised Business Model with High Barriers to Entry Revenue streams are characterised by long product lifecycles Sources: Management information and Thomson Reuters 9
Well Positioned to Capitalize on Favourable Industry Trends 10
Flexible Cost Structure Supported by Well Invested Asset Base Increased flexibility in Componenta s cost structure 11
FINANCIALS 12
13 Quarterly Development of Net Sales 2010 - Q1 2014 700 Liikevaihto vuosineljänneksittäin, Me Quarterly net sales, MEUR Net sales rolling 12 months, MEUR Rullaava liikevaihto 12 kk, Me 175 150 125 100 75 50 25 0 600 500 400 300 200 100 0 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Net sales Net sales, rolling 12 months
14 120 100 80 60 40 20 0 Quarterly Development of Order Book (including orders for the next two months) MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 +2%
Quarterly Operating Profit and Result After Financial Items (excluding one-time items) 10 Operating profit excluding one-time items 4 Result after financial items excluding one-time items 8 2 MEUR 6 4 MEUR 0-2 2-4 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14-6 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 15
16 Development of Cash Flow from Operations 25 20 15 10 5 0-5 -10-15 -20-25 MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14
STRATEGY 2014 17
Business Strategy for 2014 and Beyond 1 2 Improving productivity and quality, and profitability of production footprint Growing together with our strong customer base Continued improvement in profitability is our number one priority in the short-term New Force program is key in strategy implementation in 2014, in order to build on realised savings already achieved in 2013 Well positioned to take advantage of consolidation trends and gain share from smaller distressed competitors as customers focus on larger, more financially stable suppliers Strong customer base offers growth opportunities both in Europe and other continents 3 Strengthening position as full solution provider Enhance full solution capabilities to maintain differentiation to competitors Focus on Engineering and PDM / PDE resources 4 One Componenta Transparent and unified management systems and group wide processes and tools in place Focus on quality, health and safety, customer service network, brand/marketing, and SAP development Enhanced leadership capabilities to ensure organisational performance and One Componenta way to operate 18
PROSPECTS 2014 19
Business Environment 2014 Componenta s demand prospects improving At the end of first quarter the order book for Componenta s Heavy Trucks customer industry was 1% lower than in the previous year. Demand for heavy trucks in Europe is expected to decrease in 2014. Componenta s sales to heavy trucks customer segment is expected to stay similar to last year or to increase due to the growing market share. Componenta s demand prospects stable The order book for Componenta s Construction and Mining customer industry was 3% higher at the end of first quarter than at the same time in the previous year. Demand is expected to remain at the same level as in the previous year. Customers reduced their stocks during 2012 and 2013 due to weaker prospects in particular for mining machinery industry. Demand prospects for Componenta are stable due to higher demand from end customers. 20
Business Environment 2014 (cont d) Componenta s demand prospects improving The order book for Componenta s Machine building customer segment was 10% higher at the end of first quarter than at the same time in the previous year. Componenta s sales to machine building customer segment are expected to increase in 2014. Componenta s demand prospects stable The order book for Componenta s Agricultural machinery customer sector was 1% higher at the end of first quarter than at the same time in the previous year. Demand for agricultural machinery is expected to remain stable in 2014. Componenta s sales to agricultural machinery customer sector is expected to remain at the same level as in the previous year or to increase due to growing market share. Componenta s demand prospects stable The order book for Componenta s Automotive customer sector was 2% higher at the end of first quarter than at the same time in the previous year. In 2014, the market is expected to improve from the previous year. Componenta s sales are expected to stay similar to last year or to increase in 2014. 21
Prospects for Componenta in 2014 The prospects for Componenta in 2014 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta s order intake and order book. In consequence of the structural efficiency measures being carried out, the operating profit for the full year excluding one-time items is expected to improve from the previous year. 22
OSAKEANTIVALTUUTUS JA RAHOITUSJÄRJESTELYT 23
Hallituksen valtuuttaminen päättämään osakeannista sekä osakkeisiin oikeuttavien erityisten oikeuksien antamisesta Hallitus ehdottaa ylimääräiselle yhtiökokoukselle, että yhtiökokous valtuuttaa hallituksen päättämään osakeannista sekä osakeyhtiölain 10 luvun 1 :n tarkoittamien osakkeisiin oikeuttavien erityisten oikeuksien antamisesta yhdessä tai useammassa erässä, joko maksua vastaan tai maksutta Annettavien osakkeiden määrä ylimääräisen yhtiökokouksen valtuutuksella enintään 9 000 000 osaketta Valtuutuksen ehdotetaan olevan voimassa seuraavaan varsinaiseen yhtiökokoukseen saakka. Valtuutus ei kumoa aikaisempaa varsinaisen yhtiökokouksen 13.3.2014 hallitukselle antamaa valtuutusta päättää osakeannista Tämä valtuutus, yhdessä varsinaisen yhtiökokouksen 13.3.2014 hallitukselle antaman 6 000 000 osakkeen valtuutuksen kanssa, vastaa noin 51 prosenttia yhtiön kaikista osakkeista 24
Osakeantivaltuutus osana yhtiön rahoitusjärjestelyjä Osakeantivaltuutuksia on tarkoitus käyttää osana yhtiön jo aiemmin ilmoittamaa rahoituksen uudelleenjärjestelyä Näiden tarkoituksena on: vähentää yhtiön velkaisuutta, pidentää velkarahoituksen keskimääräistä juoksuaikaa merkittävästi, pienentää yhtiön rahoituksen kustannuksia, turvata yhtiön kehityksen kannalta riittävä rahoitus ja maksuvalmius. Rahoituksen uudelleenjärjestely on edennyt suunnitelmien mukaisesti ja neuvottelut on tarkoitus saattaa päätökseen heinäkuussa 25