COMPONENTA INTERIM REPORT 1.1. - 31.3.2015 Heikki Lehtonen - - PowerPoint PPT Presentation

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COMPONENTA INTERIM REPORT 1.1. - 31.3.2015 Heikki Lehtonen - - PowerPoint PPT Presentation

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COMPONENTA INTERIM REPORT 1.1. - 31.3.2015 Heikki Lehtonen President and CEO 2 2 Quarterly development of order book (including orders for the next two months) +2% 120 100 80 MEUR 60 40 20 0 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11

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COMPONENTA INTERIM REPORT 1.1. - 31.3.2015

Heikki Lehtonen President and CEO

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Quarterly development of order book (including orders for the next two months)

20 40 60 80 100 120 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 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

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+2%

27 April 2015

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4

Quarterly development of net sales 2010 - Q1/2015

27 April 2015 4

Liikevaihto vuosineljänneksittäin, Me Rullaava liikevaihto 12 kk, Me 100 200 300 400 500 600 700 25 50 75 100 125 150 175 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 Q2/14 Q3/14 Q4/14 Q1/15 Net sales rolling 12 months, MEUR Quarterly net sales, MEUR Net sales Net sales, rolling 12 months

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Income Statement

27 April 2015 5

MEUR Q1 2015 Q1 2014 Change Order book 92.3 90.7 2% Net sales 133 132 1% EBITDA*) 10.3 12.1

  • 15%

Operating profit*) 5.8 7.4

  • 22%

Net financial expenses

  • 5.3
  • 7.5
  • 29%

Result after financial items*) 0.5

  • 0.1

n/m One-time items and exchange rate differences of operative balance sheet items

  • 1.4
  • 0.9

50% Taxes

  • 0.8
  • 0.3

134% Net profit

  • 1.7
  • 1.3

26% Earnings/share, EUR

  • 0.02
  • 0.09
  • 76%

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

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EBITDA

27 April 2015

MEUR Q1 2015 Q1 2014 Change Net sales 133.1 131.9 1% Value of production 135.8 135.9 0% Materials

  • 62.1
  • 59.6

4% Direct wages and external services

  • 23.4
  • 23.9
  • 2%

Other variable and fixed costs

  • 40.0
  • 40.3
  • 1%

Total costs

  • 125.5
  • 123.8

1% EBITDA*) 10.3 12.1

  • 15%

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

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Operating profit and Result after financial items

27 April 2015 7

2 4 6 8 10 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Operating profit*)

  • 6
  • 4
  • 2

2 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Result after financial items*)

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

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Key ratios

27 April 2015 8

MEUR 31.3.2015 31.3.2014 31.12.2014 Equity ratio, % 22.7 18.0 23.7 Return on equity, % *)

  • 1.5
  • 2.8
  • 12.1

Return on equity, %

  • 6.2
  • 6.4
  • 29.1

Return on investment, % *) 6.9 9.5 5.6 Return on investment, % 5.3 8.5 0.8 Net interest bearing debt, MEUR 226 223 216 Net gearing, % 208 267 194 Investments in production facilities, MEUR 5.0 4.0 22.6 Personnel at the end of period, including leased personnel 4,253 4,512 4,238

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

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Development of cash flow from operations

27 April 2015 9

  • 25
  • 20
  • 15
  • 10
  • 5

5 10 15 20 25 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 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

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Cash flow statement

27 April 2015

MEUR Q1 2015 Q1 2014 Cash flow from operations before change in net working capital, financing and taxes 7.3 11.2 Change in net working capital

  • 7.7

5.0 Cash flow from operations before financing and taxes

  • 0.4

16.2 Cash flow from operations*)

  • 4.0

9.7 Cash flow from investments

  • 5.1
  • 1.0

Cash flow from financing activities 4.8

  • 5.6

Change in liquid assets

  • 4.4

3.0

*) Cash flow from operations weakened from the previous year mainly because of increase of inventories and receivables which were at exceptionally high level.

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11

Pig iron and steel scrap indexes

27 April 2015 11

Sources: Reuters Metal Bulletin, WV Stahl

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Development of exchange rates Turkish lira

27 April 2015 12

Source: Bloomberg

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EFFICIENCY IMPROVEMENT PROGRAM

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Proforma EBITDA Q1/2015 43 MEUR

14

1) Excluding one-time items 2) Excluding one-time items and exchange rate differences of operative balance sheet items. 3) Proforma cost savings: Rolling annual impact of implemented and/or decided cost savings and improvement actions on forward basis. 4) Year 2016 figure in this chart does not include any volume neither FX changes.

MEUR 10 20 30 40 50 60

FY/12 EBITDA 1) Margin impact

  • f lost

volumes Realized cost savings Cost inflation and FX differences Q1/15 EBITDA 2) Proforma cost savings 3) Q1/15 proforma EBITDA Cost savings New Force 3 FY/16 EBITDA 4)

26.1

  • 12.1

29.3

  • 9.3

34.0 8.6 7.0 49.6 42.6

27 April 2015

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15 15

100 MEUR ORGANIC GROWTH PROGRAM

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Net growth in 100 MEUR organic growth program has reached 102 MEUR by end of Q1/2015

20 40 60 80 100 120 140 160 180

Heavy Trucks Construction and Mining Agriculture Machine Building Growth total (gross) Sales erosion Growth total (net) Likely new contracts 1) Target

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61 39 29 33 162

  • 60

102 MEUR 100 29

1) Componenta expects these contracts to realise with 75% likelihood

131 31

27 April 2015

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INDICATORS OF ECONOMY

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Manufacturing Purchasing Manager Indices

18

Source: Bloomberg

27 April 2015

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IFO expectations

19 27 April 2015

Source: IFO

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CDS Index

20 27 April 2015

Source: Bloomberg

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DEVELOPMENT OF SALES AND ORDER BOOK

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Sales distribution Q1 2015

27 April 2015 22

20 40 60 80 100

Foundry division Machine Shop division Aluminium division Other Business

MEUR Sales by business segment *) Q1 2015 vs. Q1 2014 Q1 2015 Q1 2014

*) Figures excluding internal eliminations

Germany 22 % Sweden 18 % Turkey 14 % Finland 9 % Benelux 8 % UK 7 % Italy 6 % France 5 % Other Europe 4 % USA 5 % Other countries 2 %

Sales by market area Q1 2015

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Sales by customer industry Q1 2015

27 April 2015 23

32% (31%) 17% (18%) 21% (20%) 14% (17%) 16% (14%)

Heavy Trucks Construction and Mining Machine Building Agricultural Machinery Automotive

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24 24 27 April 2015

Development of sales and order book in Heavy Trucks industry

Order book Q1 2015 vs. Q1 2014 Sales to Heavy Trucks industry Q1 2015 vs. Q1 2014

+1%

+7%

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Development of supply chain in Heavy Trucks industry compared to previous year

27 April 2015

Sources: Volvo website, ACEA

Componenta’s deliveries to heavy trucks industry in Q1/2015 vs. Q1/2014 Volvo Group’s deliveries to distributors in Europe Q1/2015 vs. Q1/2014 Registrations of new heavy trucks in Europe 1-2/2015 vs. 1-2/2014

+1% +19% +8%

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Registrations of new heavy trucks in Europe (EU27)

Source: ACEA

27 April 2015 26

Change +% Change -% 2011 2012 2013 2014 2015

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27 27 27 April 2015

Development of sales and order book in Construction and Mining industry

Order book Q1 2015 vs. Q1 2014 Sales to Construction and Mining industry Q1 2015 vs. Q1 2014

  • 3%
  • 17%
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Development of Caterpillar dealer deliveries

27 April 2015

Source: Caterpillar

28

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29 29 27 April 2015

Development of sales and order book in Machine Building industry

Order book Q1 2015 vs. Q1 2014 Sales to Machine Building industry Q1 2015 vs. Q1 2014

+5%

+16%

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30 30 27 April 2015

Development of sales and order book in Agricultural Machinery industry

Order book Q1 2015 vs. Q1 2014 Sales to Agricultural Machinery industry Q1 2015 vs. Q1 2014

  • 17%
  • 19%
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Business climate in European agriculture

27 April 2015

Source: CEMA

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32 32 27 April 2015

Development of sales and order book in Automotive industry

Order book Q1 2015 vs. Q1 2014 Sales to Automotive industry Q1 2015 vs. Q1 2014

+21%

+23%

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Registrations of new passenger cars in Europe (EU27)

27 April 2015

Source: ACEA

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Change +% Change -% 2011 2012 2013 2014 2015

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DEVELOPMENT OF BUSINESS SEGMENTS

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

Development of Foundry Division

  • Operating profit in the review period excluding
  • ne-time items and exchange rate differences
  • f balance sheet items weakened 1.8 MEUR.
  • Operating profit weakened as a result of

decreased volumes and strengthened Turkish lira in Orhangazi. Positive impacts from the efficiency improvement program were eventually smaller than the negative impact of previously mentioned items.

  • 2%

0% 2% 4% 6%

  • 2

2 4 6 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

MEUR

Operating profit*)

MEUR Q1 2015 Q1 2014 Change Order book 51.9 55.3

  • 6%

Net sales 81.4 84.6

  • 4%

Operating profit*) 2.0 3.8

  • 47%

Personnel avg. 2,549 2,843

  • 10%

20 40 60 80 100 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Net sales

27 April 2015 35

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36 *) Excluding one-time items and exchange rates differences of operative balance sheet items.

Development of Machine Shop Division

  • Operating profit in the review period excluding
  • ne-time items and exchange rate differences of

balance sheet items weakened 0.1 MEUR.

  • Operating profit was negatively impacted by

strengthened Turkish lira in Orhangazi and implementation problems of SAP in Främmestad. MEUR Q1 2015 Q1 2014 Change Order book 22.8 23.2

  • 1%

Net sales 33.5 30.4 10% Operating profit*) 0.8 0.9

  • 10%

Personnel avg. 410 374 10%

10 20 30 40 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Net sales

0% 1% 2% 3% 4% 5% 6% 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Operating profit*)

27 April 2015 36

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

Development of Aluminium Division

  • Operating profit in the review period excluding
  • ne-time items and exchange rate differences
  • f balance sheet items improved 0.2 MEUR.
  • Operating profit improved from previous year

due to increased volumes. It was however burdened by strengthened Turkish lira.

5 10 15 20 25 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Net sales

MEUR Q1 2015 Q1 2014 Change Order book 17.2 14.1 22% Net sales 22.2 18.1 23% Operating profit*) 2.6 2.4 7% Personnel avg. 863 819 5%

0% 4% 8% 12% 16% 1 2 3 4 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 MEUR

Operating profit*)

27 April 2015 37

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PROSPECTS 2015

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Business environment 2015

39 27 April 2015

The order book for Heavy trucks customer sector was at the beginning of April 7% higher than at the same time in the previous year. Demand in the heavy truck industry in Europe is expected to stay at the same level as in the previous year or to improve slightly in 2015. Componenta’s sales to heavy trucks industry customers are expected to increase more than the market due to growth in introduction of new products. The order book for Construction and mining customer sector was at the beginning of April 17% lower than at the same time in the previous year. Demand in North America is expected to increase and in Europe to stabilize. Mining industry prospects are still weak due to low raw material

  • prices. As a whole, the demand is expected to be

lower than in previous year. Componenta’s sales to the customers in the construction and mining sector are expected to stay at the same level or to improve slightly due to introduction of new products.

Componenta’s demand prospects improving Componenta’s demand prospects weakening

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Business environment 2015

40 27 April 2015

The order book for Automotive customer sector was at the beginning

  • f April 23% higher than at the same

time in the previous year. Demand in 2015 is estimated to improve from the previous year. Also Componenta’s sales to automotive industry are expected to increase from previous year.

Componenta’s demand prospects improving Componenta’s demand prospects weakening Componenta’s demand prospects improving

The order book for Machine building customer sector was at the beginning

  • f April 16% higher than at the same

time in the previous year. Componenta’s sales to machine building industry are expected to rise during 2015. The order book for Agricultural machinery customer sector was at the beginning of April 19% lower than at the same time in the previous year. Due to worldwide crop prospects and reciprocal economic sanctions by EU and Russia, the prices of the agricultural products in Europe have clearly decreased. Due to these reasons the demand is expected to further decrease in 2015. Componenta’s sales to manufacturers of agricultural machinery are expected to decline from previous year.

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41 11.3.2015 41

Strategic actions

for strategy implementation and performance improvement

27 April 2015

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42 42

Prospects for Componenta in 2015

  • The prospects for Componenta in 2015 are

based on general external economic indicators, delivery forecasts given by customers, and on Componenta’s order intake and order book.

  • Componenta’s order book in the beginning of

April was 2% higher than at the same time in previous year standing at EUR 92 (91) million.

  • Componenta expects the operating profit for

2015 excluding one-time items and exchange rates differences of operative balance sheet items to improve from the previous year due to efficiency improvement program being carried

  • ut.

27 April 2015

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