PROFITABILITY IMPROVED SIGNIFICANTLY Financial Statements Release - - PowerPoint PPT Presentation

▶
profitability improved
SMART_READER_LITE
LIVE PREVIEW

PROFITABILITY IMPROVED SIGNIFICANTLY Financial Statements Release - - PowerPoint PPT Presentation

Jan 15, 2023 300 likes •502 views

PROFITABILITY IMPROVED SIGNIFICANTLY Financial Statements Release 2019 Riku Kytmki, President and CEO 18 February 2020 Exel Composites Exel Composites overview A globally leading composite technology company Customers in over that

slide-1
SLIDE 1

Exel Composites

PROFITABILITY IMPROVED SIGNIFICANTLY

Financial Statements Release 2019

Riku Kytömäki, President and CEO 18 February 2020

slide-2
SLIDE 2

Exel Composites 2

Manufacturing in

6

countries Customers in over

50

countries

Exel Composites overview

A globally leading composite technology company Industrial, construction & infrastructure and other applications

that designs, manufactures and markets fiber reinforced plastics products and solutions for demanding applications in various segments and markets

103.4

(96.6) Revenue

EUR million, Full year 2019 (2018)

648

(675) Employees

End of 2019 (2018)

7.2

(5.0) Adjusted operating profit

EUR million, Full year 2019 (2018) Customer focused Integrity Caring Innovative One Exel Our values

slide-3
SLIDE 3

Exel Composites 3

2019 in brief: Profitability improved significantly

  • Business environment

– Strong revenue growth in Construction & Infrastructure supported by wind power – Revenue growth in Other Applications driven by growth in defense applications – Industrial Applications customer declined mainly due to lower business volumes in telecommunications – Geographically revenue increased significantly in Rest of the World; Europe and APAC at last year’s level

  • Operations

– Cost savings program completed according to plan – Estimated EUR 2 million positive impact on Group profit in 2019 – The full profit impact will be approximately EUR 3 million in 2020, compared to the 2018 cost structure.

  • Financial performance

– Increased order intake and revenue compared to previous year. – Adjusted operating profit improved significantly – Very strong cash flow and strong order backlog at the end

  • f the year
slide-4
SLIDE 4

Exel Composites 4

Key highlights 2019

20.3 21.5 27.1 23.2 25.3 26.5 20.4 23.1 23.6 22.4 26.7 26.6

Q1-Q4 2017 Q1-Q4 2018 Q1-Q3 2019

Revenue, EUR million 1.7 1.8 2.0 1.7 2.0 2.2 1.6 0.5 1.7 1.3 0.8 1.3

Q1-Q4 2017 Q1-Q4 2018 Q1-Q3 2019

Adjusted operating profit, EUR million 22.5 22.0 28.2 23.4 25.0 23.8 19.3 24.7 27.1 21.4 29.1 31.7

Q1-Q4 2017 Q1-Q4 2018 Q1-Q3 2019

Order intake, EUR million

  • 0.8
  • 0.2

0.9 0.9

  • 1.1

2.9 2.1 1.6 1.7 2.7 0.5 3.5

Q1-Q4 2017 Q1-Q4 2018 Q1-Q3 2019

Net cash flow, EUR million

slide-5
SLIDE 5

Exel Composites 5

EUR thousand 1.1.-31.12. 2019 1.1.-31.12. 2018 Change, % Order intake 110,693 100,757 9.9 Order backlog

1)

30,391 23,685 28.3 Revenue 103,784 96,608 7.4 Operating profit 5,087 2,217 129.5 % of revenue 4.9 2.3 Adjusted operating profit

2)

7,160 5,017 42.7 % of revenue 6.9 5.2 Profit for the period 2,397 386 520.3 Net cash flow from operating activities

3), 4)

9,030 868 940.3 Return on capital employed, % 8.6 4.4 Net gearing, %

3)

114.9 96.3 Earnings per share 0.20 0.03 Equity per share, EUR 2.2 2.2 2.0 Employees on average 660 647 1.9 Employees at end of period 648 675

  • 4.0

Key figures Q1-Q4 2019

1) As per the end of the period. 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. 3) Exel Composites Plc has applied the IFRS16 -standard since 1.1.2019 according to the model where the comparative information of previous periods is not adjusted. Comparable net gearing ratio, assuming IFRS-16 standard would not have been applied, is estimated to have been 96.7% (96.3). 4) IFRS16 rental payments have been classified to financing activities in the cash flow statement. This impacted net cash flow from operating activities in Q4 with EUR 350 thousand, EUR 651 thousand in H2 and EUR 1196 thousand in the full year 2019.

slide-6
SLIDE 6

Exel Composites 6

EUR thousand 1.10.-31.12. 2019 1.10.-31.12. 2018 Change, % Order intake 31,650 29,108 8.7 Order backlog

1)

30,391 23,685 28.3 Revenue 26,585 26,711

  • 0.5

Operating profit 1,085

  • 1,194

190.8 % of revenue 4.1

  • 4.5

Adjusted operating profit

2)

1,300 768 69.3 % of revenue 4.9 2.9 Profit for the period 364

  • 1,606

122.7 Net cash flow from operating activities

3), 4)

3,502 534 556.3 Return on capital employed, % 6.9

  • 8.3

Net gearing, %

3)

114.9 96.3 Earnings per share 0.03

  • 0.14

Equity per share, EUR 2.2 2.2 2.0 Employees on average 656 677

  • 3.2

Employees at end of period 648 675

  • 4.0

Key figures Q4 2019

1) As per the end of the period. 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. 3) Exel Composites Plc has applied the IFRS16 -standard since 1.1.2019 according to the model where the comparative information of previous periods is not adjusted. Comparable net gearing ratio, assuming IFRS-16 standard would not have been applied, is estimated to have been 96.7% (96.3). 4) IFRS16 rental payments have been classified to financing activities in the cash flow statement. This impacted net cash flow from operating activities in Q4 with EUR 350 thousand, EUR 651 thousand in H2 and EUR 1196 thousand in the full year 2019.

slide-7
SLIDE 7

Exel Composites 7

Order backlog increased to EUR 30.4 million at the end of 2019

5 10 15 20 25 30 35 5 10 15 20 25 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 Revenue, EUR million Order backlog, EUR million, end of period

slide-8
SLIDE 8

Exel Composites 8

Despite telecom volume decline,

  • verall growth reached 7.4%

1) Volume impact calculated as difference in kilograms of delivered products

times prior year average sales price/kg.

slide-9
SLIDE 9

Exel Composites 9

Construction & Infrastructure drove revenue growth supported by wind power

Transportation Industry Telecommuni- cation Machine Industry Paper Industry Electrical Industry Cleaning & Maintenance Sports & Leisure Other Industries Building, Construction & Infrastructure Energy Industry

Construction & Infrastructure Other Applications Industrial Applications

Revenue by customer segment, EUR million

8.6 8.5 12.9 12.6 5.2 5.5 10 20 30 Q4 2018 Q4 2019 39.9 35.3 36.9 45.7 19.9 22.8 25 50 75 100 2018 2019 Other Applications Construction & Infrastructure Industrial Applications

slide-10
SLIDE 10

Exel Composites 10

Revenue in the region Rest of the World grew significantly

2019 2018 Revenue by market area, EUR million

Europe APAC Rest of the World

61.1 62.1 17.4 17.6 18.1 24.1

slide-11
SLIDE 11

Exel Composites 11

Adjusted operating profit increased significantly compared to previous year

0% 10% 1 2 3 4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 Adjusted operating profit, EUR million Adjusted operating profit margin, % Operating profit target, %

slide-12
SLIDE 12

Exel Composites 12

Cost reduction program was completed in 2019

  • The most important actions implemented under the program

– Closure of production plant in Germany – Layoffs in Finland – Cost restructuring in Exel USA – Operational improvements and synergy savings in China.

  • Actions to improve profitability of Exel USA progressed, but breakeven was

not yet achieved in 2019. – Although the implemented structural savings improved profitability, lower volumes compared to the previous year had an opposite impact. – The streamlining of the cost structure and organization during 2019, however, gives a good start for Exel USA going forward in 2020.

  • The original target of the program was to achieve a total of EUR 3 million

savings in 2020.

  • In 2019 the cost savings program already had an estimated EUR 2 million

positive impact on Group profit. The full profit impact of the program in 2020, compared to the 2018 cost structure, will be approximately EUR 3 million.

slide-13
SLIDE 13

Exel Composites 13 Build leadership in China New composites technologies Create true global footprint Protect and grow

  • ur stronghold

customers Providing competitive edge and best customer service Penetrate growing/ new applications

Strategy implementation in 2019

STRATEGY BASED ON FIVE PILLARS

  • Expanding operations

by investing in a new manufacturing facility in Austria

  • Structural changes in

production network, e.g. closure of production in Germany

  • Global M&A screening

activities

  • Focused growth initiatives in

wind power, transportation as well as building and construction.

  • Active development for new

composites applications, e.g. the carbon fiber based rope system designed to replace an elevator’s steel cabling.

  • Consolidation of

production and

  • rganization in China
  • Started production at a

new leased manufacturing location, which is better suited for composite production than the previous ones

  • Continued initiatives to extend

capabilities in product design and composite production

slide-14
SLIDE 14

Exel Composites 14

ROCE at 8.6 % in 2019

20 40 60 80 0% 10% 20% 2015 2016 2017 2018 2019

Capital employed, MEUR ROCE, %

slide-15
SLIDE 15

Exel Composites 15

Earnings per share increased to EUR 0.20

0.24 0.02 0.36 0.03 0.20 2015 2016 2017 2018 2019

slide-16
SLIDE 16

Exel Composites 16

  • 10%

0% 10% 20% 2015 2016 2017 2018 2019

Growth

Revenue growth 2x market growth 1)

Exel’s long-term financial targets – net gearing target revised

1) Annual growth rate estimated for the global composites market vary, according to industrial segment,

market area and source, between approximately 2%-5% during 2018-2023

0% 5% 10% 2015 2016 2017 2018 2019

Profitability

Adjusted operating profit margin >10%

0% 10% 20% 2015 2016 2017 2018 2019

Capital efficiency

Return on capital employed > 20%

Financial position

Net gearing ≤ 80%

0% 20% 40% 60% 80% 100% 120% 2015 2016 2017 2018 2019

Net gearing, % (without IFRS-16) Net gearing, % (applying IFRS-16)

slide-17
SLIDE 17

Exel Composites 17

Exel Composites expects revenue and adjusted operating profit to increase in 2020 compared to 2019.

Outlook for 2020

Exel Composites has manufacturing in Nanjing, China. The coronavirus outbreak has delayed ramping up production to full capacity after the Chinese New Year. This will impact production volumes in China in the first quarter 2020. Currently, it is too early to estimate the impacts of the outbreak on the company’s business and financial performance.

slide-18
SLIDE 18

Exel Composites 18

More information at www.exelcomposites.com

Financial calendar 2020

  • Financial Statements Release 2019

18 February 2020

  • Business Review January - March

6 May 2020

  • Half Year Financial Report January - June

21 July 2020

  • Business Review January - September

30 October 2020 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

slide-19
SLIDE 19

Exel Composites

THANK YOU!