CUSTOMER DEMAND REMAINED WEAK, HOWEVER, OPERATING PROFIT IMPROVED IN - - PowerPoint PPT Presentation

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CUSTOMER DEMAND REMAINED WEAK, HOWEVER, OPERATING PROFIT IMPROVED IN - - PowerPoint PPT Presentation

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CUSTOMER DEMAND REMAINED WEAK, HOWEVER, OPERATING PROFIT IMPROVED IN Q3 2016 January September 2016 Business Review 26 October 2016 Exel Composites Plc Q3 2016 in brief Business environment Market environment remains

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SLIDE 1

Exel Composites Plc

CUSTOMER DEMAND REMAINED WEAK, HOWEVER, OPERATING PROFIT IMPROVED IN Q3 2016

January – September 2016 Business Review 26 October 2016

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SLIDE 2

Exel Composites Plc 2

  • Business environment

– Market environment remains challenging – Generally lower demand in key markets, especially telecommunications – Declining share of orders from high volume customers; actions to counteract impact

  • n sales mix
  • Operations

– Cost reduction measures bringing results; implementation continues – Activities to optimize production and expand customer base

  • Financial performance

– Cost reduction measures improved Q3 2016 profitability

Q3 2016 in brief

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Exel Composites Plc 3

17.8 21.5 17.9 21.4 21.4 19.7 19.0 18.0 16.4 21.1 19.3

Q1-Q4 2014 Q1-Q4 2015 Q1-Q3 2016

Revenue, EUR million

1.9 2.0 0.1 3.1 1.3 1.1 1.9 0.5 0.6 2.1 0.6

Q1-Q4 2014 Q1-Q4 2015 Q1-Q3 2016

Operating profit, EUR million

21.8 22.8 18.0 21.4 21.4 20.2 20.8 18.7 18.2 18.4 20.5

Q1-Q4 2014 Q1-Q4 2015 Q1-Q3 2016

Order intake, EUR million

0.6 0.7

  • 0.9

2.4 1.7 0.3 3.8 0.5 2.5 3.8 0.5

Q1-Q4 2014 Q1-Q4 2015 Q1-Q3 2016

Net cash flow, EUR million

Q3 2016 highlights

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SLIDE 4

Exel Composites Plc 4

EUR thousand 1.1.-30.9. 2016 1.1.-30.9. 2015 Change % FY 2015 Order intake 56,532 62,908

  • 10.1

83,374 Order backlog 1) 17,428 14,259 22.2 15,348 Revenue 54,070 60,853

  • 11.1

80,196 Operating profit 1,858 3,805

  • 51.2

4,414 % of revenue 3.4 6.3 5.5 Adjusted operating profit 2) 1,912 4,097

  • 53.3

4,770 % of revenue 3.5 6.7 5.9 Profit for the period 1,263 2,435

  • 48.1

2,844 Net cash flow 1,972 2,908

  • 32.2

3,385 Return on capital employed, % 6.3 13.8 12.0 Net gearing, % 13.2

  • 1.2

2.0 Earnings per share, EUR 0.11 0.20 0.24 Equity per share, EUR 2.36 2.51

  • 6.0

2.58

Key figures Q1-Q3 2016

1) As per 30 September 2016. 2) Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and

costs related to planned or realized business acquisitions or disposals. For more information, please refer to the paragraph “Change in Exel Composites’ financial reporting terminology” of the Half-year Financial Report January – June 2016.

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SLIDE 5

Exel Composites Plc 5

EUR thousand 1.7.-30.9. 2016 1.7.-30.9. 2015 Change % FY 2015 Order intake 18,181 18,723

  • 2.9

83,374 Order backlog 1) 17,428 14,259 22.2 15,348 Revenue 2) 16,431 18,006

  • 8.7

80,196 Operating profit 565 466 21.2 4,414 % of revenue 3.4 2.6 5.5 Adjusted operating profit 3) 596 517 15.3 4,770 % of revenue 3.6 2.9 5.9 Profit for the period 384 78 392.3 2,844 Net cash flow 2,492 549 353.9 3,385 Return on capital employed, % 5.6 4.8 12.0 Net gearing, % 13.2

  • 1.2

2.0 Earnings per share, EUR 0.03 0.01 0.24 Equity per share, EUR 2.36 2.51

  • 6.0

2.58

Key figures Q3 2016

1) As per 30 September 2016. 2) Revenue by customer industries Q3 2016 (Q3 2015): Industrial applications EUR 8.7 (9.8) million; Construction &

infrastructure EUR 4.2 (4.7) million; Other applications EUR 3.5 (3.6) million.

3) Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and

costs related to planned or realized business acquisitions or disposals. For more information, please refer to the paragraph “Change in Exel Composites’ financial reporting terminology” of the Half-year Financial Report published on 21 July 2016.

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SLIDE 6

Exel Composites Plc 6

Lower demand in key markets

5 10 15 20 25 5 10 15 20 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016

Revenue and order backlog

Revenue, EUR million Order backlog, EUR million, end of period

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SLIDE 7

Exel Composites Plc 7

In Q3 2016 lower demand especially in telecommunications

9.8 8.7 4.7 4.2 3.6 3.5

Q3 2015 Q3 2016

Revenue by Customer Industry, EUR million

Other Applications Construction & Infrastructure Industrial Applications

Transportation Industry Telecommuni- cation Machine Industry Paper Industry Electrical Industry Cleaning & Maintenance Sports & Leisure Other Industries BCI Energy Industry

Construction & Infrastructure Other Applications Industrial Applications

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SLIDE 8

Exel Composites Plc 8

Cost reduction measures have improved profitability in Q3 2016

0% 10% 20% 2 4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016

Operating profit and operating profit margin

Operating profit, MEUR Operating profit margin, % Operating profit target, %

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Exel Composites Plc 9

20 40 60 0% 10% 20% 30% 2013 2014 2015 Q1-Q3 2016 Capital employed, MEUR ROCE, %

ROCE

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SLIDE 10

Exel Composites Plc 10

  • Measures to further reduce

costs continue

  • Optimization of production

and operational efficiency improvements

  • Focused customer

segment initiatives to expand customer base

  • Implementation of long-

term growth strategy continues

  • Attractive long-term market

fundamentals prevail

Exel Composites continues well positioned for profitable growth

Protect and grow

  • ur stronghold

customers Providing competitive edge and best customer service

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SLIDE 11

Exel Composites Plc 11

Next level growth is based on four initiatives

Accelerate growth in China

  • Local sales network
  • Value offering for

mid-segment

  • R&D and

manufacturing capacity

Growth in new technologies

  • Further processing

and vertical integration

  • New composite

technologies, other than pultrusion

Penetrate new applications

  • Solutions for larger

growth applications

  • Package key

applications to ‘systems’

Create true global footprint

  • Increase sales

coverage

  • Grow supply and

service to new market areas, including Americas

Strategy

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Exel Composites Plc 12

  • The Company continues to

implement its new strategy with focus on operational efficiency and optimizing the global manufacturing

  • footprint. The Company

estimates that adjusted

  • perating profit will decrease

in 2016 compared to 2015.

Outlook for full year 2016

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Exel Composites Plc 13

Your IR contacts

Riku Kytömäki President and CEO +358 50 511 8288 riku.kytomaki@exelcomposites.com Mikko Kettunen CFO +358 50 3477 462 mikko.kettunen@exelcomposites.com Noora Koikkalainen IR Manager +358 50 562 6552 noora.koikkalainen@exelcomposites.com

www.exelcomposites.com

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SLIDE 14

Exel Composites Plc

www.exelcomposites.com