Exel Composites Oyj · OMXHEX:EXEL

Exel Composites Oyj — Q1 2014 Earnings Presentation

20 slides from Exel Composites Oyj's earnings presentation, May 7, 2014

  1. Slide 1: Q1 2014 Exel Composites Plc

    Q1 2014 Exel Composites Plc Riku Kytömäki, President and CEO 7 May 2014

  2. Slide 2: Q1 Highlights – Market demand has shown signs of resuming growth

    Q1 2014 Q1 Highlights – Market demand has shown signs of resuming growth  Market demand has shown signs of resuming growth leading to higher Net sales, MEUR Order backlog, MEUR sales and order backlog — Net sales increased by 5.4% 18,6 17,8 — Order backlog improved to 14.3 MEUR 17,1 17,1 (11.8 MEUR

  3. Slide 3: Key figures Q1 2014

    Q1 2014 Key figures Q1 2014 – Net sales increased by 5.4%, operating profit almost tripled to MEUR 1.9 and EPS increased by 80% MEUR Q1 2014 Q1 2013 Change-% Net sales 17.8 16.9 5.4% Operating profit 1.9 0.7 183.8% Operating profit, % 10.6 3.9 Net cash flow from operating activities 0.6 0.7 -7.3% Or

  4. Slide 4: Order intake increased by 18.5% and order backlog to MEUR 14.3

    Q1 2014 Order intake increased by 18.5% and order backlog to MEUR 14.3 (11.8)  Net sales increased to MEUR 17.8 (16.9) — Demand increased in cleaning & maintenance, machine industry and general industry markets — Demand decreased in electrical industry and sports & leisure markets  Order intake in

  5. Slide 5: Sales growth comes from Industrial and Other applications

    Q1 2014 Sales growth comes from Industrial and Other applications  Sales of Industrial applications Net sales by customer industry, increased to MEUR 9.8 from MEUR MEUR 9.5 in Q1 2013  Sales of Industrial applications 3,9 increased especially in the machine 3,0 industry, transportation and energy

  6. Slide 6: European market growth drove increase in net sales, partly offset by APAC decline

    Q1 2014 European market growth drove increase in net sales, partly offset by the decline in APAC region Europe +13% 15,1 13,5 APAC Rest of world -31% 1,8 2.4% 0,7 2,8 0,7 Q1/2014 (MEUR) Q1/2013 (MEUR) Rest of world Europe APAC Growth in transportation Recovery in demand for The decline was mainly in

  7. Slide 7: Demand in some markets is picking up in challenging market environment

    Q1 2014 Demand in some markets is picking up in challenging market environment Market Demand Increased demand with new Transportation industry applications Building, Construction & Infrastructure Recovery in demand Energy industry Telecommunication industry Mid-term growth potential Paper industry E

  8. Slide 8: Operating profit nearly tripled to MEUR 1.9

    Q1 2014 Operating profit nearly tripled to MEUR 1.9 (0.7). Operating profit margin reached 10.6%  Q1 2014 operating profit improved to MEUR 1.9 (0.7)  Operating profit margin was 10.6% (3.9%) of net sales  Improvement was mainly due to higher sales, efficiency improvement, lower material spend, a

  9. Slide 9: Cost development has been favorable compared to the sales

    Q1 2014 Cost development has been favorable compared to the sales MEUR Q1 2014 Q1 2013 Change-% Net sales 17.8 16.9 5.4% Materials and services -6.0 -6.4 7.1% Employee expenses -5.4 -5.3 -1.6% Depreciation and impairment -0.7 -0.7 1.5% Other operating expenses -4.1 -4.0 -2.7% Other operating income

  10. Slide 10: Net cash flow again positive

    Q1 2014 Net cash flow again positive  In Q1 2014 net cash flow from operating activities was positive at MEUR +0.6 (+0.7) due to improved operating profit  Capital expenditure was MEUR 0.7 (0.6) 6 4 MEUR 2 0,7 0,6 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 20

  11. Slide 11: Quarter on quarter comparison of cash flow items

    Q1 2014 Quarter on quarter comparison of cash flow items MEUR Q1 2014 Q1 2013 Change Profit for the period 1.1 0.6 0.6 Adjustments 1.6 0.8 0.8 Change in working capital -1.5 -0.4 1.1 Cash flow from operations 1.2 1.0 0.3 Interests and taxes paid/received -0.6 -0.3 -0.3 Net cash flow from operating a

  12. Slide 12: Strong balance sheet to allow for potential investments and acquisitions

    Q1 2014 Strong balance sheet to allow for potential investments and acquisitions. Net gearing remains low at 14.1% 70 % 60 % 50 % 47,5 % 40 % 30 % 20 % 14,1 % 10 % 0% -10 % 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 Net gearing, % Equity ratio, % - 12 -

  13. Slide 13: ROCE improved to 21.1%, due to increased operating profit

    Q1 2014 ROCE improved to 21.1%, due to increased operating profit 30 % 60 21,1 % Capital employed, MEUR 20 % 40 ROCE-% 10 % 20 0% 0 2010 2011 2012 2013 Q1/2014 Capital employed, MEUR ROCE, % - 13 -

  14. Slide 14: Earnings per share increased to EUR 0.09 per share

    Q1 2014 Earnings per share increased to EUR 0.09 per share Quarterly EPS 0,30 0,20 0,09 0,10 0,05 EUR - -0,10 *) -0,20 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 - 14 - * Q4 2012 EPS was negative due to impairment of MEUR 2.5

  15. Slide 15: Share price development

    Q1 2014 Share price development – In Q1 the highest share quotation was EUR 6.28 (6.50) and the lowest EUR 5.56 (5.70) 14.3 (1.7) % of shares outstanding were traded Exel Composites share price development in Jan – March 2014 January 2010 – May 2014 In Q1 the highest share quotation was EUR 6.28 (6.

  16. Slide 16: Major Shareholders on 30 April 2014

    Q1 2014 Major Shareholders on 30 April 2014 Number of Percentage of shares share capital Skandinaviska Enskilda Banken AB (nominee reg.) 2,172,877 18.26 Nordstjernan AB 1,656,506 13.92 Ilmarinen Mutual Pension Insurance Company 639,400 5.37 OP-Finland Small Firms Fund 589,551 4.96 Fondita Nordic Mic

  17. Slide 17: Exel Composites is revisiting the strategy

    Q1 2014 Exel Composites is revisiting the strategy. New strategy will target boosting profitable growth in the future  Exel Composites is revisiting the strategy — New strategy will target boosting profitable growth in the future — Strategy is expected to be disclosed in H2 2014  Strategic improve

  18. Slide 18: Risks and uncertainties

    Q1 2014 Risks and uncertainties  The most significant near-term business risks are related to the general economic development, government regulations and financial crisis in the Euro area as well as to market demand  Continuing low demand in certain markets or regions may require further correcti

  19. Slide 19: Near-term outlook – the company is well-positioned when the markets recover

    Q1 2014 Near-term outlook – the company is well-positioned when the markets recover  The market has stabilized but remains challenging  Uncertainties relating to general growth prospects in the economy continue  Some positive signs can be seen especially in the laminate and demanding carbon tubes

  20. Slide 20: More information is available on Exel Composites website

    Q1 2014 More information is available on Exel Composites website  Exel Composites website: www.exelcomposites.com  For further information contact Riku Kytömäki Ilkka Silvanto President and CEO CFO +358 50 511 8288 +358 50 598 9553 riku.kytomaki@exelcomposites.com ilkka.silvanto@exelcomposites.com

Exel Composites — Q1 2014 Earnings Presentation on 6ix