SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT January March 2017 - - PowerPoint PPT Presentation

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SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT January March 2017 - - PowerPoint PPT Presentation

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SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT January March 2017 Business Review 4 May 2017 Riku Kytmki President and CEO Exel Composites Q1 2017 in brief Business environment Strong order intake and order backlog leading

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Exel Composites

January – March 2017 Business Review 4 May 2017 Riku Kytömäki President and CEO

SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT

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Exel Composites 2

  • Business environment

– Strong order intake and order backlog leading to increased revenue – New customer acquisition gaining momentum – General market recovery contributed – Significant improvement in operating profit

  • Operations

– Increased operational efficiency – Reduced cost level after cost savings measures from 2016

  • Financial performance

– Key performance indicators – order intake, revenue and operating profit – all improved in Q1 2017

Q1 2017 in brief

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Exel Composites 3

21.5 17.9 20.3 21.4 19.7 18.0 16.4 19.3 19.0

Q1-Q4 2015 Q1-Q4 2016 Q1 2017

Revenue, EUR million

2.0 0.1 1.7 1.5 1.2 0.5 0.6 0.7 0.7

Q1-Q4 2015 Q1-Q4 2016 Q1 2017

Adjusted operating profit, EUR million

22.8 18.0 22.5 21.4 20.2 18.7 18.2 20.5 18.3

Q1-Q4 2015 Q1-Q4 2016 Q1 2017

Order intake, EUR million

0.7

  • 0.9
  • 0.8

1.7 0.3 0.5 2.5 0.5 1.2

Q1-Q4 2015 Q1-Q4 2016 Q1 2017

Net cash flow, EUR million

Q1 2017 highlights

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Exel Composites 4

EUR thousand 1.1.-31.3. 2017 1.1.-31.3. 2016 Change, % 1.1.-31.12. 2016 Order intake 22,480 18,032 24.7 74,778 Order backlog

1

18,806 15,382 22.3 16,702 Revenue

2

20,296 17,919 13.3 73,079 Operating profit 1,655 146 1032.7 649 % of revenue 8.2 0.8 0.9 Adjusted operating profit

3

1,665 149 1016.6 2,621 % of revenue 8.2 0.8 3.6 Profit for the period 1,107

  • 2

53940.3 198 Net cash flow from operating activities

  • 848
  • 862

+1.6 3,129 Return on capital employed, % 17.4 1.5 1.7 Net gearing, % 16.5 15.8 12.2 Earnings per share 0.09 0.00 0.02 Equity per share, EUR 2.37 2.32 2.5 2.27

Key figures Q1 2017

1 As per 31 March 2017. 2 Revenue by customer segment in Q1 2017: Industrial Applications EUR 11.9 million (9.6), Construction & infrastructure

EUR 4.1 million (4.1), Other applications EUR 4.4 million (4.2).

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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Exel Composites 5

Order backlog continued to increase in Q1 2017

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 Q4 Q1 2013 2014 2015 2016 2017 Revenue, EUR million Order backlog, EUR million, end of period

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Exel Composites 6

Industrial Applications contributed the most to revenue growth in Q1 2017

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

9.6 11.9 4.1 4.1 4.2 4.4 5 10 15 20 25 Q1 2016 Q1 2017

Revenue, EUR million

Other Applications Construction & Infrastructure Industrial Applications

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Exel Composites 7

Significant improvement in

  • perating profit

0% 10% 20% 1 2 3 4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 2017 Adjusted operating profit, EUR million Adjusted operating profit margin, % Operating profit target, %

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Exel Composites 8

Accelerate growth in China Protect and grow

  • ur stronghold

customers

Providing competitive edge and best customer service

Create true global footprint New composite technologies Penetrate new applications

Exel is well positioned for profitable growth

  • Increased efforts and focus on

new customer acquisition gaining momentum

  • Continued focus on
  • perational efficiency
  • Attractive long-term market

fundamentals prevail

  • At the end of April 2017 Exel

closed the acquisition of the Chinese composites production company Nanjing Jianhui Composite Material (JHFRP)

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Exel Composites 9

The acquisition of Nanjing Jianhui strengthens our position in APAC

  • Nanjing Jianhui is a steadily growing, profitable business
  • Business

includes

  • ne

manufacturing unit, which uses mainly pultrusion technology to produce composite products

  • A balanced portfolio of local Chinese customers and exports outside

China

  • Products produced largely complementary to Exel’s existing offering
  • Being located in Nanjing, where Exel’s existing factory is, gives us the
  • pportunity to realize operational synergies and improves our export

sales capacity from China

  • Currently integration of Nanjing Jianhui to Exel Group is ongoing
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Exel Composites 10

  • Exel Composites estimates

that revenue with current company structure (i.e. without the Chinese company acquisition) will increase from previous year level and adjusted

  • perating profit will be

higher than previous year

  • level. In 2016, Exel

Composites’ revenue was EUR 73.1 million and adjusted operating profit was EUR 2.6 million.

Outlook for 2017

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Exel Composites 11

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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Exel Composites