Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Shareholder Meeting (April 2011)
24 slides from Exel Composites Oyj's shareholder meeting presentation, Apr 6, 2011
Slide 1: Annual General Meeting 6 April 2011
Annual General Meeting 6 April 2011 Exel Composites Plc Vesa Korpimies, President and CEO
Slide 2: Outline
Outline • Highlights 2010 • Financial statements 2010 • Market and position • Targets and strategy 2
Slide 3: Highlights 2010 – improvements despite weak Q1
Highlights 2010 – improvements despite weak Q1 • Net sales increased with 4.1 per cent to MEUR 72.9 (70.0) • Operating profit increased to MEUR 9.4 (8.0)* • Operating profit margin improved to 12.9 (11.4) per cent** • Net gearing improved to -4.3 (23.7) per cent • Fully diluted EPS increased to EUR
Slide 4: Platform for growth was reinforced further
Platform for growth was reinforced further • We continued reinforcing our platform for growth in 2010 – We took actions to strengthen our sales and technical sales team – Strong net cash position and balance sheet at year end – Successful implementation of Group-wide ERP system – Maintained our focu
Slide 5: Outline
Outline • Highlights 2010 • Financial statements 2010 • Market and position • Targets and strategy 5
Slide 6: Key figures improved in 2010 despite weak Q1
Key figures improved in 2010 despite weak Q1 MEUR 2010 2009 Change Net sales 72.9 70.0 +4 % Operating profit* 9.4 8.0 +18 % Operating profit (%)** 12.9 11.4 Net operative cash flow +12.0 +14.2 Return on capital employed (%) 21.8 20.9 Net gearing (%) -4.3 23.7 EPS 0.57 0.56 +2 % *Operating profit fro
Slide 7: Net sales picked up in Q3 and Q4
Net sales picked up in Q3 and Q4 Net Sales (MEUR) Change Comments • Composite profile market +4 % very competitive +19 % • Overcapacity in the market • Strong demand in telecom +17 % and paper industry, electrical and machine industry and cleaning and -1 % maintenance markets • Building and construc
Slide 8: Profitability improved in all quarters except Q1
Profitability improved in all quarters except Q1 MEUR Operating profit including one-off items % ** * *Operating profit from continuing operations MEUR +3.1 including MEUR +0.9 non-recurring items (MEUR +2.4 including net reversal of the restructuring provisions of EUR +0.7 million) **Operating prof
Slide 9: Positive cash flow continued throughout the year
Positive cash flow continued throughout the year MEUR Operative cash flow 9
Slide 10: We strengthened our financial position further
We strengthened our financial position further % Net gearing and equity ratio % 10
Slide 11: Risk elements
Risk elements • Weakening demand: General economic development, government regulations and a possible new financial crisis in the Euro area could have a negative effect on demand • Raw material price increases: Raw material prices and other cost increases may pressure profitability. The EC’s anti-du
Slide 12: Measures to reduce the impact of the anti-dumping tariff on Chinese glass fiber
We have taken measures to reduce the impact of the anti-dumping tariff on Chinese glass fiber • The European Commission imposed an anti-dumping tariff of 43.6 per cent on imported Chinese glass fiber in September 2010. Final duty 13.8% • Exel Composites’ actions to reduce the impact of the tariff –
Slide 13: Outline
Outline • Highlights 2010 • Financial statements 2010 • Market and position • Targets and strategy 13
Slide 14: 50 years of growth and innovation
50 years of growth and innovation MEUR Net Sales Exel Composites Acquisition of 120 Pacific Composites Exel 100 Composites Acquisition 50 years of 80 Faserprofil Acquisition 60 of Bekaert Acquitision of Menzolit- 40 Fibron IPO Founding 20 year 0 1960 1998 2000 2002 2004 2006 2008 2010 Note: Until 20
Slide 15: We are the global #1 composite profile provider
We are the global #1 composite profile provider Source: Lucintel; Growth Opportunities in the Pultrusion Market 2009-2014: Global Market Outlook 15
Slide 16: Our core technology: continuous processes
Our core technology: continuous processes 1. Reinforcements 2. Cross-winding units 3. Resin Injection Mould 4. Pulling Device 5. Cutting Device Principle drawing of Exel Composites pullwinding process 16
Slide 17: Unique platform for numerous applications
Unique platform for numerous applications Customer Development co- Exel Composites’ core competence and solution platform application operation creating the know-how optimized solution Fiber Chemistry Process Customer Solution Exel Technology know how know-how application and experts in specialists
Slide 18: Exel Composites has a strong market position in selected niche segments
Exel Composites has a strong market position in selected niche segments • Transportation • Building and infrastructure • Energy industry • Telecommunication • Paper industry • Electrical industry • Cleaning and maintenance • Sport and leisure industry • Machine industry • General industries 18
Slide 19: Exel Composites has a history of profitable growth
Exel Composites has a history of profitable growth MEUR EBIT % Exel Composites 140 36 % 120 30 % 105 104 100 87 24 % 80 19,0 % 18,1 % 18,1 % 70 72,9 16,2 % 18 % 14,9 % 57 14,6 % 60 12,3 % 48 12,9 % 11,0 % 10,8 % 11,4 % 12 % 40 8,5 % 25 29 10,7 % 20 22 20 14 6% 11 0 0% 98 99 00 01 02 03 04 05 06 07 0
Slide 20: We will continue our profitable growth strategy
We will continue our profitable growth strategy • We are well-positioned to capitalize on the growth opportunities on the gradually recovering markets • We are constantly looking for bolt-on acquisitions to strengthen our business portfolio and market position • We will also continue to invest in th
Slide 21: Exel Composites Group's financial targets over a business cycle
Exel Composites Group’s financial targets over a business cycle • Growth: to exceed the market growth of the industry • Operating profit: to exceed 10 per cent of net sales • Dividend policy: at least 40 per cent of net income 21
Slide 22: Exel Composites Total Shareholder Return 2010 was 36% compared to HEX 20%
Exel Composites Total Shareholder Return 2010 was 36% compared to HEX 20% Share price development 2010 and YTD 2011 – EUR per share 22
Slide 23: Forward-looking statements
Forward-looking statements Certain statements in this presentation, which are not historical facts, including, without limitation, those regarding expectations for general economic development and market situation; regarding customer industry profitability and investment willingness; regarding Compa
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