COMPONENTA PRESENTATION EGM 5 SEP 2014 Heikki Lehtonen President - PowerPoint PPT Presentation

COMPONENTA PRESENTATION EGM 5 SEP 2014 Heikki Lehtonen President and CEO 2

WE ARE ONE OF THE LARGEST cast component suppliers in Europe 511 M€ 4,400 346,000 Net sales (2013) Personnel approx. Iron foundry production capacity tons/year 726,000 Machining hours/year Listed in NASDAQ OMX Helsinki 3 5.9.2014

We serve our customers by combining A GLOBAL NETWORK WITH STRONG LOCAL PRESENCE 4 5.9.2014

OUR NETWORK IS OPTIMIZED to provide expertise and cost efficiency to our customers everywhere Personnel by country Sales by market area Germany 21% Sweden 19% Turkey 60% Turkey 13% UK 11% Finland 17% Finland 8% Benelux 7% The Netherlands 13% France 6% Italy 5% Other European countries 3% USA 3% Sweden 10% Other countries 2% 5.9.2014 5

Our Broad Customer Base Supports Stability and Innovation 15% 17% 18% 19% 31% 18% 17% 31% 19% 15% Agricultural Machine Construction Automotive Heavy Trucks Building and Mining Machinery Construction Machine Agricultural Heavy Trucks Automotive and Mining Building Machinery 6 6 5.9.2014

Shifting Production to Low Cost Location Continuous shift to Turkey significantly improves cost structure Development of Iron Production Revenue Breakdown – Europe vs Turkey Volumes in Turkey 100% 60% 90% 56% 56% 54% 50% 80% 48% 52% 52% 53% 55% 70% 62% 64% 43% 40% 42% 60% 50% 30% 40% 20% 30% 48% 48% 47% 45% 20% 38% 36% 10% 10% 0% 0% 2008A 2009A 2010A 2011A 2012A 2013A 2008A 2009A 2010A 2011A 2012A 2013A Turkey EU Turkey (% of iron foundries production) 7 5.9.2014

Iron Casting - Competitive Landscape Componenta is the European market leader for small-mid series, complex iron castings Iron Batch Size Sales Attractive Market Company (€m) Small Medium Mass Series Position Fritz Winter   712 Eisengießerei • Focus on non-automotive 709   GeorgFischer applications in iron   Teksid 680 • Clear #1 for small-mid   Componenta (1) 445 series production of complex castings 431   Georgsmarienhütte • Market highly fragmented  Neue Halberg-Guss 338 with c.1,700 players with  Brühl 280 average size of c. €10m 175   SLR Group revenues   Gienanth 157 • Small players not able to SHW Casting meet demand for high-end  119 Technologies total solutions and product  Infun 117 bundling   102 Castings • Smaller players likely to continue exiting the market   Vald.Birn 78 and /or losing business to Construction & Mining Automotive Pan-European casters – Customer Segments Machine Building Trucks lack economies to Agricultural Machinery effectively compete Life Cycle 12-14 years 10-12 years 8 years (1) Includes Iron Foundries and Machine Key: Key-Focus Also Active 5.9.2014 Shop 8

Aluminium Casting - Market Positioning Componenta has a focused business strategy on complex, high margin automotive/truck products 9 5.9.2014

Aluminium Casting - Market Trends & Drivers Strong underlying growth drivers: Aluminium is key for meeting stricter emission regulations Source: CO2 Emissions Report 2012, European Environment Agency, The aluminium Association Inc. “Automotive aluminium continued gain in fuel economy” 2011, IHS Automotive 5.9.2014 10

COMPONENTA’S CYCLE OF SUCCESS 11

Componenta’s Cycle of Success Experienced Industry Management Leading Team with Player in Strong Track Target Record Markets Flexible Cost Specialised Structure Business Model Supported By with High Well Invested Barriers to Entry Asset Base Well Long-term, Positioned to “sticky” Capitalize on Relationships Favourable with Blue-Chip Industry Customer Trends Base Balanced and Diversified Business 12 5.9.2014

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 Componenta’s Position (Revenue in €m) • Focus on complex, safety critical parts • Significant scale advantage vs regional players 0 200 400 600 800 drives increased profitability (1) Componenta 445 #1 • One of few preferred suppliers with whom customers seek to concentrate their sourcing across product categories (1) Georg Fischer 709 – More competitive bundled offering (2) – Reduced sourcing complexity Georgsmarienhütte 431 Non- – A certified supplier ensuring best practices automotive and quality control (2) SLR Group 175 • Full service development partner with differentiated high value added product (2) Gienanth 157 offering • Multinational operations and global delivery (3) SHW 119 capability • Market fragmentation creates opportunity to (2) Vald.Birn 78 take share from smaller players – Non profitable foundries gradually exiting (average size) market 1700 Foundaries c.10 – Unable to compete effectively in high-end segment Focus on Small / Medium Batch Sizes (Non-Automotive: Heavy Trucks, Agriculture, Machine Building, Construction & Mining) (1) FY 2013 (2) FY 2012 Focus on Large Batch Sizes (Automotive) (3) FY 2011 13 5.9.2014

Specialised Business Model with High Barriers to Entry 14 5.9.2014

Specialised Business Model with High Barriers to Entry Sole supplier status with blue-chip customer base 15 5.9.2014

Specialised Business Model with High Barriers to Entry Revenue streams are characterised by long product lifecycles Sources: Management information and Thomson Reuters 16 5.9.2014

Balanced and Diversified Business High degree of diversification by customer segment, buying relationships and geography 17 5.9.2014

Flexible Cost Structure Supported by Well Invested Asset Base Increased flexibility in Componenta’s cost structure 18 5.9.2014

STRATEGY 2014 19

Business Strategy for 2014 and Beyond 1 Improving • Continued improvement in profitability is our number one priority in the short-term productivity and quality, and • New Force program is key in strategy implementation in 2014, in order to build on realised profitability of savings already achieved in 2013 production footprint 2 • Well positioned to take advantage of consolidation trends and gain share from smaller Growing together distressed competitors as customers focus on larger, more financially stable suppliers with our strong customer base • Strong customer base offers growth opportunities both in Europe and other continents 3 Strengthening • Enhance full solution capabilities to maintain differentiation to competitors position as full • Focus on Engineering and PDM / PDE resources solution provider 4 • 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 One Componenta development • Enhanced leadership capabilities to ensure organisational performance and One Componenta way to operate 20 5.9.2014

FINANCIALS 21

Quarterly development of order book (including orders for the next two months) 120 +0% 100 80 MEUR 60 40 20 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 Q2/14 5.9.2014 22

Liikevaihto vuosineljänneksittäin, Me Quarterly net sales, MEUR 23 100 125 150 175 25 50 75 0 Q1/10 Q2/10 Net sales, rolling 12 months Net sales Quarterly development of net sales Q3/10 Q4/10 Q1/11 Q2/11 2010 - Q2 2014 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 0 100 200 300 400 500 600 700 5.9.2014 Net sales rolling 12 months, MEUR Rullaava liikevaihto 12 kk, Me

Operating profit and Result after financial items excluding one-time items and exchange rate differences of balance sheet items Result after financial items*) Operating profit*) 4 10 2 8 MEUR MEUR 0 6 -2 4 -4 2 -6 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 *) Excluding one ‐ time items and exchange rate *) Excluding one ‐ time items and exchange rate differences of operative balance sheet items. differences of operative balance sheet items. 5.9.2014 24

5.9.2014 Cash flow statement 25

Key ratios MEUR 30.6.2014 30.6.2013 31.12.2013 Equity ratio, % 17.9 15.8 18.9 Return on equity, excluding one-time items, % -0.6 3.4 -12.8 Return on equity, % -5.1 1.0 -18.6 Return on investment, excluding one-time items, % 9.2 7.7 5.9 Return on investment, % 7.7 7.1 4.9 Net interest bearing debt, MEUR 234 241 230 Net gearing, % 282 314 270 Investments in production facilities, MEUR 8.8 7.9 18.9 Personnel at the end of period, including leased personnel 4,523 4,606 4,431 5.9.2014 26

REFINANCING ARRANGEMENTS 27