Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — FY2019 Earnings Presentation
19 slides from Exel Composites Oyj's earnings presentation, Feb 18, 2020
Slide 1: Profitability improved significantly
PROFITABILITY IMPROVED SIGNIFICANTLY Financial Statements Release 2019 Riku Kytömäki, President and CEO 18 February 2020 Exel Composites
Slide 2: Exel Composites overview
Exel Composites overview A globally leading composite technology company Customers in over that designs, manufactures and markets fiber reinforced 50 plastics products and solutions countries for demanding applications in Manufacturing in various segments and markets 6 Industrial, construction & cou
Slide 3: 2019 in brief: Profitability improved significantly
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
Slide 4: Key highlights 2019
Key highlights 2019 Revenue, Order intake, EUR million EUR million 26.6 31.7 26.7 29.1 22.4 21.4 23.6 27.1 20.4 23.1 19.3 24.7 25.3 26.5 25.0 23.8 23.2 23.4 20.3 21.5 27.1 22.5 22.0 28.2 Q1-Q4 Q1-Q4 Q1-Q3 Q1-Q4 Q1-Q4 Q1-Q3 2017 2018 2019 2017 2018 2019 Adjusted operating profit, Net cash flow, EUR m
Slide 5: Key figures Q1-Q4 2019
Key figures Q1-Q4 2019 1.1.-31.12. 1.1.-31.12. Change, EUR thousand 2019 2018 % Order intake 110,693 100,757 9.9 1) Order backlog 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 2) Adjusted operating profit 7,160 5,017 42.7 % of revenue 6.9 5.2 P
Slide 6: Key figures Q4 2019
Key figures Q4 2019 1.10.-31.12. 1.10.-31.12. Change, EUR thousand 2019 2018 % Order intake 31,650 29,108 8.7 1) Order backlog 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 2) Adjusted operating profit 1,300 768 69.3 % of revenue 4.9 2.9 Prof
Slide 7: Order backlog increased to EUR 30.4 million at the end of 2019
Order backlog increased to EUR 30.4 million at the end of 2019 30 35 25 30 25 20 20 15 15 10 10 5 5 0 0 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 Exel Composites 7
Slide 8: Despite telecom volume decline, overall growth reached 7.4%
Despite telecom volume decline, overall growth reached 7.4% 1) Volume impact calculated as difference in kilograms of delivered products times prior year average sales price/kg. Exel Composites 8
Slide 9: Construction & Infrastructure drove revenue growth supported by wind power
Construction & Infrastructure drove revenue growth supported by wind power Revenue by customer segment, EUR million Industrial Applications 30 5.2 5.5 20 12.9 12.6 10 8.6 8.5 Telecommuni- Paper Electrical Machine Transportation 0 cation Industry Industry Industry Industry Q4 2018 Q4 2019 Constructio
Slide 10: Revenue in the region Rest of the World grew significantly
Revenue in the region Rest of the World grew significantly Revenue by market area, EUR million Europe 62.1 61.1 APAC Rest of the World 17.6 24.1 17.4 18.1 2019 2018 Exel Composites 10
Slide 11: Adjusted operating profit increased significantly compared to previous year
Adjusted operating profit increased significantly compared to previous year 4 3 10% 2 1 0 0% 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, % Exel Composites 11
Slide 12: Cost reduction program was completed in 2019
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 U
Slide 13: Strategy implementation in 2019
Strategy implementation in 2019 STRATEGY BASED ON FIVE PILLARS • Expanding operations by investing in a new • Consolidation of manufacturing facility in production and Austria organization in China Protect and grow • Structural changes in • Started production at a Build our stronghold Create product
Slide 14: ROCE at 8.6 % in 2019
ROCE at 8.6 % in 2019 20% 80 60 10% 40 20 0% 0 2015 2016 2017 2018 2019 Capital employed, MEUR ROCE, % Exel Composites 14
Slide 15: Earnings per share increased to EUR 0.20
Earnings per share increased to EUR 0.20 0.36 0.24 0.20 0.02 0.03 2015 2016 2017 2018 2019 Exel Composites 15
Slide 16: Exel's long-term financial targets – net gearing target revised
Exel’s long-term financial targets – net gearing target revised Growth Profitability Capital efficiency Financial position Revenue growth Adjusted operating Return on capital employed Net gearing 2x market growth 1) profit margin >10% > 20% ≤ 80% 120% 100% 20% 10% 20% 80% 60% 10% 5% 10% 40% 20% 0% 0
Slide 17: Outlook for 2020
Outlook for 2020 Exel Composites expects revenue and adjusted operating profit to increase in 2020 compared to 2019. 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 productio
Slide 18: More information at www.exelcomposites.com
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 Ky
Slide 19: Thank you!
THANK YOU! OL. Exel Composites