Q4 2016 OPERATING PROFIT AT PREVIOUS YEAR’S LEVEL … · 2020-06-22 · Volume Sales mix Exhange...

Exel Composites Plc

Q4 2016 OPERATING PROFIT AT PREVIOUS

YEAR’S LEVEL DESPITE LOWER REVENUE AND

LESS FAVORABLE SALES MIX

Riku Kytömäki

President and CEO

14.2.2017

Exel Composites Plc 2

• Business environment

– Challenging market environment

– Generally lower demand and

toughened competition in key

markets such as

telecommunications

– Less favorable sales mix

– New customer acquisition not

enough to compensate

• Operations

– Successful cost savings measures

– Efficient capacity utilization and

production optimization

• Financial performance

– Cost reduction measures improved

Q4 2016 profitability

– Adjusted operating profit for Q3

and Q4 2016 higher or at the same

level as in the same periods

previous year

2016 in brief


17.8 21.5 17.9

21.4 21.419.7

19.0 18.016.4

21.1 19.319.0

Q1-Q42014

Q1-Q42015

Q1-Q42016

Revenue, EUR million

1.9 2.0 0.1

3.11.5

1.2

2.3

0.5

0.6

2.1

0.7

0.7

Q1-Q42014

Q1-Q42015

Q1-Q42016

Adjusted operating profit, EUR million

21.8 22.8 18.0

21.4 21.420.2

20.8 18.718.2

18.4 20.518.3

Q1-Q42014

Q1-Q42015

Q1-Q42016

Order intake, EUR million

0,6 0,7-0,9

2,4 1,70,3

3,8

0,52,5

3,8

0,5 1,2

Q1-Q42014

Q1-Q42015

Q1-Q42016

Net cash flow, EUR million

Q1-Q4 2016 highlights


EUR thousand

1.1.-31.12.

2016

1.1.-31.12.

2015

Change

%

Order intake 74,778 83,374 -10.3

Order backlog 1)16,702 15,348 8.8

Revenue 73,079 80,196 -8.9

Operating profit 649 4,414 -85.3

% of revenue 0.9 5,5

Adjusted operating profit 2)2,621 4,770 -45.1

% of revenue 3.6 5.9

Profit for the period 198 2,844 -93.0

Net cash flow 3,129 3,385 -7.6

Return on capital employed, % 1.7 12.0

Net gearing, % 12.2 2.0

Earnings per share, EUR 0.02 0.24

Equity per share, EUR 2.27 2,58 -12.0

Employees on average 479 498 -3.8

Employees at end of period 455 494 -7.9

Key figures Q1-Q4 2016

1) As per 31 December 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.


EUR thousand

1.10.-31.12.

2016

1.10.-31.12.

2015

Change

%

Order intake 18,334 20,466 -10.4

Order backlog 1)16,702 15,348 8.8

Revenue 19,009 19,343 -1.7

Operating profit -1,209 609 -298.5

% of revenue -6.4 3.1

Adjusted operating profit 2)708 673 5.2

% of revenue 3.7 3.5

Profit for the period -1,065 409 -360.4

Net cash flow 1,157 477 142.6

Return on capital employed, % -12.5 6.8

Net gearing, % 12.2 2.0

Earnings per share, EUR -0.09 0.03

Equity per share, EUR 2.27 2.58 -12.0

Employees on average 457 493 -7.3

Employees at end of period 455 494 -7.9

Key figures Q4 2016

1) As per 31 December 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.


Lower demand in key markets;

new customers not enough to compensate

• Order backlog at a historically high level.

0

5

10

15

20

25

0

5

10

15

20

25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014 2015 2016

Revenue and order backlog

Revenue, EUR million

Order backlog, EUR million, end of period


-8,9 %

-1,2 %

-6,1 %

-1,6 %

0,0 %-10,0 %

-9,0 %

-8,0 %

-7,0 %

-6,0 %

-5,0 %

-4,0 %

-3,0 %

-2,0 %

-1,0 %

0,0 %

Volume Sales mix Exhange ratesAcquisitions /divestments Total

Revenue bridge 2016 vs. 2015

Less favorable sales mix reduced

revenue

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

times prior year average sales price/kg.

1)


Lower demand impacted key markets

such as telecommunications

11.2 11.3

4.5 4.2 3.7 3.6

Q4 2015 Q4 2016

Revenue by Customer Industry,

EUR million

Other Applications

Construction & Infrastructure

Industrial Applications

Transportation Industry

Telecommuni-

cation

MachineIndustry

PaperIndustry

ElectricalIndustry

Cleaning & Maintenance

Sports & Leisure

Other Industries

BCI EnergyIndustry

Construction &

InfrastructureOther

Applications


47.4 40.3

18.4 17.5

14.4 15.3

Q1-Q4 2015 Q1-Q4 2016

Other Applications

Construction & Infrastructure



Lower demand from some key

customers in Europe and in Asia

2016 (EUR) million 2015 (EUR) million

63.9

59.6

Europe

13.7

11.3

APAC

2.6

2.2

Rest of the world


Adjusted operating profit in Q3 and

Q4 2016 at the same level or higher

than previous year

0%

10%

20%

0

1

2

3

4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

Adjusted operating profit and adjusted operating profit margin

Adjusted operating profit, MEUR

Adjusted operating profit margin, %

Operating profit target, %


0

20

40

60

0%

10%

20%

30%

2013 2014 2015 2016

Capital employed, MEUR ROCE, %

Return on capital employed


0.17

0.26

0.48

0.24

0.02

2012 2013 2014 2015 2016

Earnings per share

1) The downsizing of the underperforming Australian unit resulted in one-off

expenses of EUR 1.5 million and costs related to the acquisition of

the Chinese composites production company of EUR 0.5 million were

recorded in the group accounts.

1)


Share quotations 2016

Highest: EUR 6.85

Lowest: EUR 4.71

Average: EUR 5.05

On 31.12. 2016: EUR 5.02

Market capitalization on

31.12.2016:

EUR 59.7 (77.7) million

Source: Kauppalehti

Share price development 2016

Price/earnings 2012-2016:

31.12.2016: 301.35

31.12.2015: 27.32

31.12.2014: 17.50

31.12.2013: 22.21

31.12.2012: 34.57


Number of

shares

Percentage of

share capital

Skandinaviska Enskilda Banken AB (nominee registered) 2,330,295 19.6

Nordea Bank Finland Plc (nominee registered) 1,727,641 14.5

Nordea Fennia Fund 605,508 5.1

OP-Finland Small Firms Fund 498,259 4.2

Försäkringsaktiebolaget Pensions-Alandia 476,559 4.0

Danske Invest Finnish Small Cap Fund 374,219 3.1

Fondita Nordic Micro Cap 350,000 2.9

Ilmarinen Mutual Pension Insurance Company 342,733 2.9

OP-Delta Fund 300,000 2.5

Matti Suutarinen 266,662 2.2

Exel Composites had a total of 3,034 (2,987) shareholders on 31 December 2016.

Major shareholders

on 31 December 2016


• Focused sales efforts on

growing customer

industries

• Optimization of production

and efficient capacity

utilization

• Acquisition of Chinese

composites production

company; closing expected

in Q1 2017

• Attractive long-term market

fundamentals prevail

Exel Composites continues well

positioned for profitable growth

Protect and grow our stronghold

customersProviding

competitive edge and best

customer service


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


• 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.

Outlook for full year 2017


Your IR contacts

Riku Kytömäki

President and CEO

+358 50 511 8288

[email protected]

Mikko Kettunen

CFO

+358 50 3477 462

[email protected]

Noora Koikkalainen

IR Manager

+358 50 562 6552

[email protected]

www.exelcomposites.com

Exel Composites Plc

www.exelcomposites.com

Q4 2016 OPERATING PROFIT AT PREVIOUS YEAR’S LEVEL … · 2020-06-22 · Volume Sales mix Exhange...

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