Componenta Corporation Interim Report 1 January 31 March 2009 - - PowerPoint PPT Presentation

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Componenta Corporation Interim Report 1 January 31 March 2009 - - PowerPoint PPT Presentation

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Componenta Corporation Interim Report 1 January 31 March 2009 `~=c=p `~=c=p 1 17.4.2009 Q1/2009 in brief Net sales totalled MEUR 88.1 (MEUR 185.0). Net sales

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1 17.4.2009

Componenta Corporation Interim Report 1 January – 31 March 2009

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2 17.4.2009

Q1/2009 in brief

  • Net sales totalled

MEUR 88.1 (MEUR 185.0). Net sales fell 52% and the value of production 59%.

  • The operating profit excluding one-time items was MEUR -6.1 (MEUR 23.1).
  • The result after financial items excluding one-time items was MEUR -10.8

(MEUR 14.9).

  • The operating result decreased significantly mainly as a consequence of low

production volumes.

  • The restructuring measures taken towards the end of last year and early in

2009 have reduced the Group’s operating expenses for the first quarter by 49% from the corresponding period in 2008.

  • Unused credit facilities and cash funds totalled

MEUR 48.9 at the end of the review period.

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3 17.4.2009

Income statement

MEUR 2009 2008 2008 1 - 3 1 - 3 1 - 12 Net sales 88.1 185.0 681.4 Operating profit

  • 6.1

23.1 47.9 Financial income and expenses

  • 4.7
  • 8.2
  • 28.7

One-time items

  • 0.05

0.0

  • 0.6

Result after financial items

  • 10.9

14.9 18.6 Net result

  • 8.3

11.1 13.9 Earnings per share, EUR

  • 0.75

0.96 1.24

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4 17.4.2009

Quarterly net sales development 2004 – Q1/2009

20 40 60 80 100 120 140 160 180 200 220

Q 1 / 4 Q 2 / 4 Q 3 / 4 Q 4 / 4 Q 1 / 5 Q 2 / 5 Q 3 / 5 Q 4 / 5 Q 1 / 6 Q 2 / 6 Q 3 / 6 Q 4 / 6 Q 1 / 7 Q 2 / 7 Q 3 / 7 Q 4 / 7 Q 1 / 8 Q 2 / 8 Q 3 / 8 Q 4 / 8 Q 1 / 9

MEUR

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5 17.4.2009

Key ratios

MEUR 31.3.2009 31.3.2008 31.12.2008 Equity ratio, % (preferred capital note in equity) 23.5 27.0 27.8 Return on equity, %

  • 51.2

48.2 14.5 Return on investment, %

  • 6.5

25.4 13,6 Net interest bearing debt, MEUR (preferred capital note in equity) 223.4 191.6 211.2 Net gearing, % (preferred capital note in equity) 226.6 140.4 168.9 Order book, MEUR 46.2 134.6 73.6 Investments in production facilities, MEUR 5.2 10.5 42.3 Personnel at the end of period (incl. leased personnel) 3,858 5,303 4,488

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6 17.4.2009

Cash flow

MEUR 2009 1 – 3 2008 1 – 3 2008 1 – 12 Cash flow from operations before change in net working capital, financing and taxes

  • 2.8

31.5 68.6 Change in net working capital 11.2

  • 5.8
  • 4.2

Cash flow from operations before financing and taxes 8.4 25.7 64.4 Cash flow from operations 5.3 17.6 29.4 Cash flow from investments

  • 4.4
  • 9.3
  • 40.6

Cash flow from financing activities 8.5 4.1

  • 8.7

Change in liquid assets 9.4 12.4

  • 20.0
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7 17.4.2009

Wvstahl Sorte 8/package recycled metal (EUR/ton)

(Source: Wvstahl)

233 229 389 284 178 109 248 253 162 136 219 113 157 279 185 259 400 429 427 216 228 202 113 103 239 201 218 132 213 317

60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460

2001 2 3 4 5 6 7 8 9 10 11 12 2002 2 3 4 5 6 7 8 9 10 11 12 2003 2 3 4 5 6 7 8 9 10 11 12 2004 2 3 4 5 6 7 8 9 10 11 12 2005 2 3 4 5 6 7 8 9 10 11 12 2006 2 3 4 5 6 7 8 9 10 11 12 2007 2 3 4 5 6 7 8 9 10 11 12 2008 2 3 4 5 6 7 8 9 10 11 12 2009 2 3

EUR / Ton

WV Stahl Sorte 8 (EUR / Ton) WV Stahl Sorte 8 Yearly average

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8 17.4.2009

Development in exchange rates Turkish lira

Lähde: Reuters Source: Reuters

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9 17.4.2009

Development in exchange rates Great Britain pound

Lähde: Reuters Source: Reuters

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10 17.4.2009

Development in exchange rates Swedish crown

Lähde: Reuters Source: Reuters

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11 17.4.2009

20 40 60 80 100 120 140 160 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09

Foundries and Machine shops Turkey Other business

Quarterly development of order book (includes orders for coming two months)

MEUR

  • 66%
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12 17.4.2009

Operating profit and result after financial items excluding one-time items quarterly

  • 10
  • 5

5 10 15 20 25

I II III IV

  • 10
  • 5

5 10 15 20 25

2008 2009 2008 % 2009 %

  • 20
  • 16
  • 12
  • 8
  • 4

4 8 12 16 20

I II III IV

2008 2009

Operating profit excluding one-time items Result after financial items excluding one-time items

MEUR MEUR

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13 17.4.2009

Equity ratio, %

5 10 15 20 25 30 35

31.3.2008 31.12.2008 31.3.2009 mêÉÑÉêêÉÇ=Å~éáí~ä=åçíÉ=áå=Éèìáíó mêÉÑÉêêÉÇ=Å~éáí~ä=åçíÉ=áå=ÇÉÄí

B

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14 17.4.2009

Personnel by country including leased personnel

Finland 1 222 1 167 The Netherlands 930 700 Turkey 2 618 1 600 Sweden 533 391

31.3.2008 31.3.2009

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15 17.4.2009

Distribution of sales

25 50 75 100 Foundries Machine shops Turkey Other business 1-3 2008 1-3 2009

Sales by division excluding one-time items

MEUR

Sales by market area Q1/2009

Germany 19% UK 9% Turkey 10% Sweden 13% Finland 24% France 7% Italy 5% USA 3% Other countries 2% Benelux 8%

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16 17.4.2009

Heavy trucks

18% (27%)

Off-road

31% (36%)

Diesel & wind

15% (6%)

Machine building

22% (14%)

Automotive

13% (16%)

Comparable sales to customer industries

Note: Other sales 1% (1%)

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17 17.4.2009

10 20 30 40 50 60 70 80 Q1 Q2 Q3 Q4

MEUR

2008 2009

Comparable sales to off-road industry quarterly

  • 59%
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18 17.4.2009

Development of order book and sales in off-road

Orderbook, Order intake, Net Sales

2006/Jan 2006/Mar 2006/May 2006/July 2006/Sep 2006/Nov 2007/Jan 2007/Mar 2007/May 2007/July 2007/Sep 2007/Nov 2008/Jan 2008/Mrt 2008/May 2008/July 2008/Sep 2008/Nov 2009/Jan 2009/Mar

Order intake Sales Orderstock

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19 17.4.2009

Top 5 customers in off-road Q1/2009

  • Top 5 customers cover 56% of the sales
  • f the off-road business area

– Caterpillar Europe – JCB Transmissions – Valtra – AGCO Fendt – T.T.F. Top 5 56% Others 44%

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20 17.4.2009

10 20 30 40 50 60 70 Q1 Q2 Q3 Q4

MEUR

2008 2009

Comparable sales to heavy truck industry quarterly

  • 68%
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21 17.4.2009

Development of supply chain in heavy truck industry

Componenta’s deliveries for heavy truck industry during Q1 Volvo Trucks’ deliveries to distributors in January - February Registrations

  • f new heavy

trucks in Europe in January - February

  • 68%
  • 48%
  • 40%

Sources: Volvo’s web pages, ACEA

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22 17.4.2009

Development of order book and sales in heavy trucks

Orderbook, Order intake, Net Sales

2 6 / J a n 2 6 / M a r 2 6 / M a y 2 6 / J u l y 2 6 / S e p 2 6 / N

  • v

2 7 / J a n 2 7 / M a r 2 7 / M a y 2 7 / J u l y 2 7 / S e p 2 7 / N

  • v

2 8 / J a n 2 8 / M r t 2 8 / M a y 2 8 / J u l y 2 8 / S e p 2 8 / N

  • v

2 9 / J a n 2 9 / M a r

Order intake Sales Orderstock

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23 17.4.2009

Registrations of new heavy trucks in Europe (Total EU27+EFTA)

  • 5,1 %-2,1 %-0,4 %
  • 11,2 %
  • 5,7 %
  • 17,1 %
  • 31,7 %
  • 21,6 %
  • 34,7 %
  • 46,4 %

16,4 % 1,1 % 20,8 % 27,2 %

5 000 10 000 15 000 20 000 25 000 30 000 35 000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 08-09 FEB 08-09

  • 60 %
  • 50 %
  • 40 %
  • 30 %
  • 20 %
  • 10 %

0 % 10 % 20 % 30 % 40 %

2007 2008 Change % Source: ACEA

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24 17.4.2009

Top 5 customers in heavy trucks Q1/2009

  • Top 5 customers cover 83% of the sales
  • f the heavy truck business area

– Volvo Trucks – Scania LV – MAN – Daimler – Iveco Top 5 83% Others 17%

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25 17.4.2009

5 10 15 20 25 30 35 Q1 Q2 Q3 Q4

MEUR

2008 2009

Comparable sales to automotive industry quarterly

  • 60%
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26 17.4.2009

Registrations of new passenger cars in Europe (Total EU27+EFTA)

  • 9,4 %
  • 8,0 % -7,5 % -6,5 %
  • 15,8 %
  • 8,4 %
  • 14,8 %
  • 25,7 %
  • 19,6 %
  • 26,7 %
  • 18,6 %
  • 9,0 %

0,1 % 9,0 % 10,3 % 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000 1 600 000 1 800 000 2 000 000 Tammi Helmi Maalis Huhti Touko Kesä Heinä Elo Syys Loka Marras Joulu Tammi 08-09 Helmi 08-09 Maalis 08-09

  • 30 %
  • 25 %
  • 20 %
  • 15 %
  • 10 %
  • 5 %

0 % 5 % 10 % 15 %

2007 2008 Change %

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 08-09 FEB 08-09

MAR 08-09

Source: ACEA

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27 17.4.2009

Development of order book and sales in automotive

Orderbook, Order intake, Net Sales

2 6 / J a n 2 6 / M a r 2 6 / M a y 2 6 / J u l y 2 6 / S e p 2 6 / N

  • v

2 7 / J a n 2 7 / M a r 2 7 / M a y 2 7 / J u l y 2 7 / S e p 2 7 / N

  • v

2 8 / J a n 2 8 / M r t 2 8 / M a y 2 8 / J u l y 2 8 / S e p 2 8 / N

  • v

2 9 / J a n 2 9 / M a r

Order intake Sales Orderstock

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28 17.4.2009

Top 5 customers in automotive industry Q1/2009

  • Top 5 customers cover 61% of the sales
  • f the automotive business area

– Tofas Manisa – Auto Teile Unger (ATU) – Oyak-Renault – Ford of Europe – Ford Otosan Top 5 61% Others 39%

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29 17.4.2009

2 4 6 8 10 12 14 16 Q1 Q2 Q3 Q4

MEUR

2008 2009

Comparable sales to diesel & wind industry quarterly

+ 20%

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30 17.4.2009

Development of order book and sales in diesel & wind industry

Orderbook, Order intake, Net Sales

2 6 / J a n 2 6 / M a r 2 6 / M a y 2 6 / J u l y 2 6 / S e p 2 6 / N

  • v

2 7 / J a n 2 7 / M a r 2 7 / M a y 2 7 / J u l y 2 7 / S e p 2 7 / N

  • v

2 8 / J a n 2 8 / M r t 2 8 / M a y 2 8 / J u l y 2 8 / S e p 2 8 / N

  • v

2 9 / J a n 2 9 / M a r

Order intake Sales Orderstock

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31 17.4.2009

Top 5 customers in diesel & wind Q1/2009

  • Top 5 customers in the diesel & wind

business area cover 98% of sales

– Wärtsilä – Moventas – Caterpillar Motoren – Mahle – Voith Top 5 98% Others 2%

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32 17.4.2009

5 10 15 20 25 30 35 Q1 Q2 Q3 Q4

MEUR

2008 2009

Comparable sales to machine building industry quarterly

  • 23%
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33 17.4.2009

Development of order book and sales in machine building

Orderbook, Order intake, Net Sales

2 6 / J a n 2 6 / M a r 2 6 / M a y 2 6 / J u l y 2 6 / S e p 2 6 / N

  • v

2 7 / J a n 2 7 / M a r 2 7 / M a y 2 7 / J u l y 2 7 / S e p 2 7 / N

  • v

2 8 / J a n 2 8 / M r t 2 8 / M a y 2 8 / J u l y 2 8 / S e p 2 8 / N

  • v

2 9 / J a n 2 9 / M a r

Order intake Sales Orderstock

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34 17.4.2009

Top 5 customers in machine building Q1/2009

  • Top 5 customers in the machine

building business area cover 42% of sales

– Atlas Copco – AGCO France – NCB Lohmann – ABB Oy Motors – Kone Elevators Top 5 42% Others 58%

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35 17.4.2009

Focus on four task forces

Operations and cost efficiency Focus is on productivity of the foundries and machine shops. Cash flow Focus on working capital, raw material inventories, collection of receivables and payment terms for our customers. Internal sourcing Focusing on cost savings by optimization of production. Sales Focusing on new sales in 2009.

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36 17.4.2009

Analysis of changes in income statement Q1/2009 vs. Q1/2008

1000 euro Actual Actual

  • Diff. %

Q1/2009 Q1/2008 Net Sales 88,1 185,0

  • 52 %

Value of production 75,3 185,9

  • 59 %

Materials

  • 24,1
  • 67,4
  • 64 %

Direct wages and external services

  • 25,1
  • 46,9
  • 47 %

Other variable and fixed costs

  • 29,2
  • 42,5
  • 31 %

EBITDA

  • 3,0

29,1

  • 110 %
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37 17.4.2009

Offers and new sales

Offers made by the Group have been on a record level during the first quarter. At the same time, new sales of Componenta have developed particularly well. Major part of these new sales will realize towards the end of 2009 and especially in 2010.

Monthly offers > 100,000 euro Net sales 1000 euro

20 000 40 000 60 000 80 000 100 000 120 000 2005_average 2006_average 2007_average 2008_average 2009_average 2009_01 2009_02 2009_03 1000 euro

Other Machining Castings

Monthly offers > 100,000 euro Tons and number of offers

10 000 20 000 30 000 40 000 50 000 60 000 70 000 2005_average 2006_average 2007_average 2008_average 2009_average 2009_01 2009_02 2009_03 Tons 20 40 60 80 100 120 140 Number Tons Number

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38 17.4.2009

Competition in Europe (net sales, MEUR)

Many of Componenta’s foundry and machine shop competitors have fallen into great difficulties due to the recent and very fast downturn in the world economy. Componenta has received new orders through new sales and also gained additional

  • rders from competitors’

customers.

200 400 600 800 1000 1200 1400 1600

Georg Fischer (automotive) Nemak (Europe) Componenta Honsel Internat. Technologies Fritz W inter Halberg Guss Georgsmarienhütte Gmbh Montupet ERW group Zen Group KSM castings Citation Corporation Groupe Arche Infun AE Group Fagor Ederlan (Europe) SLR Group Birn Castings Plc. Iron Aluminium

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39 17.4.2009

Operating profit excluding one-time items Net sales

Foundries division

20 40 60 80 100 f ff fff fs 2008 2009

  • 8
  • 4

4 8 12 16

I II III IV

  • 8
  • 4

4 8 12 16

2008 2009 2008 % 2009 % jbro jbro B

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40 17.4.2009

Performance of the Foundries division

  • The division contains the Group’s foundries in Karkkila, Pori,

Pietarsaari and Iisalmi in Finland, and in Weert and Heerlen in the Netherlands.

  • Net sales in the review period were MEUR 43.1 (MEUR 73.6) and the
  • perating result was MEUR -3.4, or -7.9% of net sales (MEUR 8.8;

12.0%).

  • Low capacity usage at the business units had the biggest impact on the

division’s operating result.

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41 17.4.2009

Operating profit excluding one-time items Net sales

Machine shops division

  • 4,0
  • 3,0
  • 2,0
  • 1,0

0,0 1,0 2,0 3,0 4,0 5,0

f ff fff fs

  • 12
  • 9
  • 6
  • 3

3 6 9 12 15 2008 2009 2008 % 2009 % jbro jbro

10 20 30 40 50 60 70 80 I II III IV OMMU OMMV

B

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42 17.4.2009

Performance of the Machine shops division

  • The division comprises the Främmestad machine shop and the Wirsbo

forge in Sweden, the machine shops in Lempäälä and Pietarsaari in Finland, the machine shop operations in Weert in the Netherlands, and the machine shop in Orhangazi, Turkey.

  • Net sales in the review period totalled

MEUR 28.6 (MEUR 65.7) and the

  • perating result was MEUR -3.2, or -11.2% of net sales (MEUR 2.6;

4.0%).

  • The division’s operating result was weakened mainly by low volumes. In

addition, a large part of the division’s personnel is in Sweden, where adaptation measures take place more slowly than in other countries.

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43 17.4.2009

10 20 30 40 50 60 70 80 I II III IV 2008 2009

Operating profit excluding one-time items Net sales

Turkey division

jbro jbro

  • 15
  • 10
  • 5

5 10 15 20

f ff fff fs

  • 15
  • 10
  • 5

5 10 15 20 2008 2009 2008 % 2009 %

B

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44 17.4.2009

Performance of the Turkey division

  • The Turkey division comprises the iron foundry in Orhangazi and the

aluminium foundry and production unit for aluminium wheels in Manisa.

  • Net sales in the review period totalled

MEUR 24.0 (MEUR 70.7) and the operating result was MEUR -0.6, corresponding to -2.5% of net sales (MEUR 13.0; 18.4%).

  • The division’s operating result for the review period was hit by the

extremely sharp decline in volumes.

  • Adjusting costs succeeded well in Turkey, and despite the extremely

low capacity usage the division recorded only a small operating loss.

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45 17.4.2009

Prospects for 2009

  • Componenta’s prospects for 2009 are based on general external

financial indicators, order forecasts given by customers, and on Componenta’s order intake and order book.

  • The demand outlook in the Group’s customer industries is uncertain at

the beginning of the second quarter of 2009, due to the recent rapid decline in the global economy.

  • Because of the above mentioned factors it is at this point of the year

difficult to make a reliable estimate of the development of net sales in 2009.

  • The slowdown in construction in the USA and Europe has reduced

demand considerably in the off-road sector. Demand for mining machinery has continued to fall, due to the fall in the prices of raw

  • materials. Because of the recession, many countries have initiated

infrastructure projects, and it is estimated that these will increase demand for off-road vehicles in 2010.

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46 17.4.2009

Prospects for 2009 (cont.)

  • The number of heavy trucks registered in Europe in January and

February was 40% less than in the previous year. This year production volumes are expected to decline 30–50% from last year.

  • The number of private cars registered decreased 17% in Q1 from the

previous year. Automotive production in Europe was significantly lower in the first part of the year than in the previous year.

  • Demand in the wind power sector is expected to weaken temporarily

due to financing problems of wind power projects. Demand prospects for diesel engines have not changed.

  • Demand in the machine building industry is expected to continue to fall.
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47 17.4.2009

Prospects for 2009 (cont.)

  • Componenta’s order book at the end of the first quarter of 2009 was

66% lower than at the same time in the previous year. The order book has decreased due to weakened demand of end products and measures taken by customers to reduce their own stocks.

  • The restructuring measures taken towards the end of last year and

early in 2009 have reduced the Group’s operating expenses for the second quarter more than 60% from the corresponding period in 2008.

  • Componenta Corporation’s net in 2009 sales are expected to fall 40–

50% from the previous year and the result after financial items, excluding one-time items, is expected to be negative.

  • The Group’s cash flow from operations before financing and taxes is,

however, expected to be positive due to the major reduction in working capital and the low level of investments.