Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — FY2015 Earnings Presentation
27 slides from Exel Composites Oyj's earnings presentation, Feb 19, 2016
Slide 1: Financial Statements 2015
FINANCIAL STATEMENTS 2015 19 February 2016 Riku Kytömäki President and CEO Exel Composites Oyj
Slide 2: In 2015 Exel Composites started fully implementing the new strategy
In 2015 Exel Composites started fully implementing the new strategy • Organization has been strengthened, competencies acquired and developed • Flexibility and capacity was added to production in order to be ready for organic and in- organic growth • Sales coverage was expanded further and extra eff
Slide 3: Profitability was impacted in 2015 by higher operating costs
Profitability was impacted in 2015 by higher operating costs mainly attributable to the additional resources • Profitability of the Company was impacted in 2015 by higher operating costs mainly attributable to the additional resources relating to the implementation of the long-term growth strategy •
Slide 4: Key figures January-December 2015
Key figures January-December 2015 MEUR 1-12 2015 1-12 2014 Change-% Net sales 80.2 79.3 1.2 Operating profit *) 4.4 8.9 -50.3 Operating profit, % 5.5 11.2 Net cash flow from operating activities +3.4 +10.7 -68.3 Order backlog 15.3 12.8 19.6 Order intake 83.4 82.3 1.3 Return on capital employed, % 12
Slide 5: Q4 2015 In Brief: Net Sales 19.3 (21.1), operating profit 0.6 (2.1)
Q4 2015 In Brief: Net Sales 19.3 (21.1), operating profit 0.6 (2.1), orders recovering Net sales, MEUR Order backlog, MEUR • Net sales in Q4 were MEUR 19.3 (21.1) 21.1 19.3 16.9 • Operating profit decreased to 17.5 19.0 18.0 21.4 21.4 MEUR 0.6 including MEUR -0.1 17.1 21.5 16.9 17.8 10.5 12.8 15.3 n
Slide 6: Key figures Q4 2015
Key figures Q4 2015 MEUR Q4 2015 Q4 2014 Change-% Net sales 19.3 21.2 -8.2 Operating profit *) 0.6 2.1 -70.6 Operating profit, % 3.1 9.8 Net cash flow from operating activities +0.5 +3.8 -87.5 Order backlog 15.3 12.8 19.6 Order intake 20.5 18.4 11.1 Return on capital employed, % 6.8 22.6 Net gearing
Slide 7: Market environment in 2015
Market environment in 2015 – challenges in Europe and NAM, all in all market for Exel relatively stable • On one hand, the overall economic situation in our main market area, Europe, was quite depressed and challenging – Declining exports from EU area to Russia affected the building and construction
Slide 8: Market environment in 2016
Market environment in 2016 – No significant changes in European market • Looking forward to 2016, industrial investments are gradually expected to pick up in Europe • Low demand in the Russian market continues to impact also the European building and construction industry • We do not expect any sign
Slide 9: Order backlog increased to MEUR 15.3 (12.8)
Order backlog increased to MEUR 15.3 (12.8) on 31 December 2015 • Group net sales increased to MEUR 80.2 (79.3) in 2015 – Postponements of orders and end-customer projects from some key customers were recorded in Q2 and Q3 2015 • Order intake increased both in Q4 2015 and during the financial year 2
Slide 10: In 2015 sales increased in Construction and Infrastructure and Other applications
In 2015 sales increased in Construction and Infrastructure applications and in Other applications Net sales by customer industry, MEUR • In 2015 Group net sales were MEUR 80.2 (79.3) 2,7 3,6 4,6 • Net sales of Industrial 4,5 applications decreased by 13,7 11,2 0.3% to MEUR 47.4 (47.5) Q4 2014 Q4 201
Slide 11: APAC was the fastest growing region in 2015
APAC was the fastest growing region in 2015: up by 16.1% to MEUR 13.7 (11.8) Europe -9.6% 15.1 16.7 APAC Rest of world 3.0 -18.9% 1.2 (+71.4%) 3.7 0.7 Q4/2015 (MEUR) Q4/2014 (MEUR) Rest of world (ROW) Europe APAC Net sales in the region Rest of Net sales in Europe decreased Net sales in the region A
Slide 12: 2015 profitability impacted by higher operational costs and lower volumes
2015 profitability was impacted by higher operational costs and lower than expected business volumes • Q4 2015 operating profit decreased to MEUR 0.6 (2.1) • Q1-Q4 2015 operating profit decreased to MEUR 4.4 (8.9) • Profitability was impacted by higher operational costs mainly due to increased resou
Slide 13: In Jan-Dec 2015 operating profit margin decreased to 5.5%
In Jan-Dec 2015 operating profit margin decreased to 5.5% (11.2%) 1-12/2015 1-12/2014 % of net % of net Change in % MEUR Value sales Value sales of net sales Net sales 80.2 100% 79.3 100% Materials and services -30.0 37.4% -29.1 36.8% +0.6 Employee expenses -25.3 31.5% -22.7 28.6% +2.9 Depreciation
Slide 14: In Q4 2015 operating profit margin decreased to 3.1%
In Q4 2015 operating profit margin decreased to 3.1% (9.8%) Q4/2015 Q4/2014 Change in % of net % of net % of net MEUR Value sales Value sales sales Net sales 19.3 100% 21.1 100% Materials and services -7.6 39.4 -8.0 37.9 +1.5 Employee expenses -6.1 31.5 -6.1 28.8 +2.7 Depreciation and impairment -0.
Slide 15: In Q4 2015 net cash flow was MEUR +0.5
In Q4 2015 net cash flow was MEUR +0.5 (+3.8) • Cash flow from operating activities was positive at MEUR +0.5 (+3.8) • Capital expenditure was MEUR 4.3 (4.4) 6 Net cash flow, MEUR 4.4 4 MEUR 2 0.5 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 2014 2015 Exel Compo
Slide 16: Strong balance sheet allows potential investments and acquisitions
Strong balance sheet allows potential investments and acquisitions 70% 57.1% 60% 50% 40% 30% 20% 10% 2.0% 0% -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 Net gearing, % Equity ratio, % Exel Composites Oyj 16
Slide 17: ROCE in 2015 was 12.0% (25.2%)
ROCE in 2015 was 12.0% (25.2%) 30% 60 Capital employed, MEUR 20% 40 ROCE-% 12.0% 10% 20 0% 0 2010 2011 2012 2013 2014 2015 Capital employed, MEUR ROCE, % Exel Composites Oyj 17
Slide 18: Major near-term risks and uncertainties
Major near-term risks and uncertainties • The Company has added resources to pursue the long-term growth strategy. As a result, operating cost level has increased • The most significant near-term business risk relates to the possibility of sales growth not materializing. This would have a negative i
Slide 19: Earnings per share were EUR 0.03 (0.12)
Earnings per share were EUR 0.03 (0.12) per share Quarterly EPS 0,30 0,20 0.12 0,10 EUR 0.03 0,00 -0,10 *) -0,20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 * Q4 2012 EPS was negative due to impairment of MEUR 2.5 Exel Composites Oyj 19
Slide 20: In 2015 highest share quotation was EUR 9.85
In 2015 highest share quotation was EUR 9.85 (8.80) and the lowest EUR 6.32 (5.56) 20.6 (49.1%) % of shares outstanding were traded in 2015 Exel Composites share price development January 2010 – February 2016 In 2015 the highest share quotation was EUR 9.85 (8.80) and the lowest EUR 6.32 (5.56) Mark
Slide 21: Board proposal for 2016 AGM - dividend EUR 0.22
Board proposal for 2016 AGM - dividend EUR 0.22 The Board of Directors of Exel Composites Plc has on 18 February 2016 amended the Company’s dividend policy. Exel Composites’ financial goals include distributing dividends minimum (prior: “some”) 40 per cent of the profit for the financial year as per
Slide 22: Strategy implementation continues at full speed
Strategy implementation continues at full speed • Full implementation of the long-term growth strategy started in 2015. The cornerstones of the strategy are: – Accelerate growth in China – Penetrate new applications – Create true local footprint – Grow in new technologies • We want to differentiate
Slide 23: Factory expansions in China and Austria in permitting and design phase
Factory expansions in China and Austria are in permitting and design phase • New factory expansions were initiated in China and Austria – Permitting and design of the China unit expansion are ongoing, but we no longer foresee that building would be completed in 2016 – Land reservation and permitting
Slide 24: Outlook for full year 2016
Outlook for full year 2016 • The Company continues to implement its new strategy with focus to operational efficiency and optimizing the global manufacturing footprint. The Company estimates that operating profit excluding any non-recurring items will increase in 2016 compared to 2015 Exel Composite
Slide 25: Major Shareholders on 31 December 2015
Major Shareholders on 31 December 2015 Number of Percentage of shares share capital Skandinaviska Enskilda Banken AB (nominee reg.) 2,321,225 19.5 Nordea Bank Finland Plc (nominee reg.) 1,784,049 15.0 Nordea Fennia Fund 610,000 5.1 Försäkringsaktiebolaget Pensions-Alandia 476,559 4.0 OP-Finland Smal
Slide 26: Financial reporting in 2016
Financial reporting in 2016 • Exel Composites will change its financial reporting practices as of 19 February 2016. Instead of interim reports, Exel Composites will disclose certain key figures and information on business performance for the three and nine months periods in a stock exchange release.
Slide 27: More information is available on Exel Composites website
More information is available on Exel Composites website • Exel Composites website: www.exelcomposites.com • For further information please contact Riku Kytömäki Mikko Kettunen President and CEO CFO +358 50 511 8288 +358 50 3477 462 [email protected] [email protected]