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

SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT January – March 2017 Business Review 4 May 2017 Riku Kytömäki President and CEO Exel Composites

Q1 2017 in brief • 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 Exel Composites 2

Q1 2017 highlights Revenue, EUR million Order intake, EUR million 20.5 19.3 18.3 19.0 18.7 18.0 18.2 16.4 21.4 21.4 19.7 20.2 22.8 22.5 21.5 20.3 17.9 18.0 Q1-Q4 Q1-Q4 Q1 Q1-Q4 Q1-Q4 Q1 2015 2016 2017 2015 2016 2017 Adjusted operating profit, Net cash flow, EUR million EUR million 0.7 0.5 1.2 0.5 1.5 0.5 0.7 0.6 1.7 2.5 2.0 1.7 1.2 0.7 -0.9 0.3 0.1 -0.8 Q1-Q4 Q1-Q4 Q1 Q1-Q4 Q1-Q4 Q1 2015 2016 2017 2015 2016 2017 Exel Composites 3

Key figures Q1 2017 1.1.-31.3. 1.1.-31.3. Change, 1.1.-31.12. 2017 2016 % 2016 EUR thousand Order intake 22,480 18,032 24.7 74,778 1 Order backlog 18,806 15,382 22.3 16,702 2 Revenue 20,296 17,919 13.3 73,079 Operating profit 1,655 146 1032.7 649 % of revenue 8.2 0.8 0.9 3 Adjusted operating profit 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 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. Exel Composites 4

Order backlog continued to increase in Q1 2017 25 25 20 20 15 15 10 10 5 5 0 0 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 Exel Composites 5

Industrial Applications contributed the most to revenue growth in Q1 2017 Industrial Applications Revenue, EUR million 25 20 4.4 4.2 15 4.1 Machine Telecommuni- Paper Electrical Transportation Industry Industry Industry Industry 4.1 cation 10 11.9 5 Construction & 9.6 Other Infrastructure Applications 0 Q1 2016 Q1 2017 Other Applications Construction & Infrastructure Industrial Applications Energy BCI Cleaning & Sports & Other Industry Maintenance Leisure Industries Exel Composites 6

Significant improvement in operating profit 4 20% 3 2 10% 1 0 0% 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, % Exel Composites 7

Exel is well positioned for profitable growth • Increased efforts and focus on new customer acquisition gaining momentum • Continued focus on Protect and grow our stronghold operational efficiency Create Accelerate customers true growth in Providing competitive • global Attractive long-term market China edge and best footprint customer service fundamentals prevail New Penetrate • At the end of April 2017 Exel composite new technologies applications closed the acquisition of the Chinese composites production company Nanjing Jianhui Composite Material (JHFRP) Exel Composites 8

The acquisition of Nanjing Jianhui strengthens our position in APAC • Nanjing Jianhui is a steadily growing, profitable business • Business includes one 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 opportunity to realize operational synergies and improves our export sales capacity from China • Currently integration of Nanjing Jianhui to Exel Group is ongoing Exel Composites 9

Outlook for 2017 • Exel Composites estimates that revenue with current company structure (i.e. without the Chinese company acquisition) will increase from previous year level and adjusted operating 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. Exel Composites 10

Your IR contacts Riku Kytömäki Mikko Kettunen Noora Koikkalainen President and CEO CFO IR Manager +358 50 511 8288 +358 50 3477 462 +358 50 562 6552 riku.kytomaki@exelcomposites.com mikko.kettunen@exelcomposites.com noora.koikkalainen@exelcomposites.com www.exelcomposites.com Exel Composites 11

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