Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Shareholder Meeting (March 2015)
22 slides from Exel Composites Oyj's shareholder meeting presentation, Mar 26, 2015
Slide 1: Annual General Meeting 26 March 2015 – CEO's Review
Annual General Meeting 26 March 2015 Exel Composites Plc CEO’s Review
Slide 2: Contents of the presentation
CEO’s review Contents of the presentation 2014 Highlights Financial statements 2014 Market overview Share price development and major shareholders Outlook for full year 2015 Targets and strategy -2-
Slide 3: 2014 highlights
2014 highlights 2014 was very successful for Exel Composites The Company got back on growth track Group net sales developed positively Order intake and order backlog increased significantly Net operative cash flow was strongly positive at year end Exel Composites’ financial performance was greatly i
Slide 4: Organization reinforced and global functions strengthened
2014 highlights In 2014, Exel Composites reinforced the organization and continued to strengthen the global functions The Company invested strongly in growth by reinforcing the organization, especially in sales, research and development and operations development. Organization is more efficient and
Slide 5: Key figures January – December 2014
Financial statements 2014 Key figures January – December 2014 Financial performance was greatly improved MEUR 2014 2013 Change-% Net sales 79.3 69.3 14.4 Operating profit excluding non-recurring items 9.4 5.5 70.9 Operating profit 8.9 4.8 83.5 Operating profit, % 11.2 7.0 Net cash flow from operatin
Slide 6: 2014 net sales increased by 14.4% to 79.3 MEUR
Financial statements 2014 In 2014 net sales increased by 14.4% to 79.3 MEUR (69.3) Net sales (MEUR) 100 90 87 85 76 79 80 73 70 69 70 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 Sales grew most in Europe by 15.2% All customer industries grew over 10% Order backlog was 12.8 MEUR at year en
Slide 7: In 2014 all customer industries grew over 10 per cent
Financial statements 2014 In 2014 all customer industries grew over 10 per cent Net sales of Industrial Net sales by customer industry, MEUR applications increased by 16.7% to MEUR 47.5 (MEUR 14.3 40.7 in 2013) 12.8 17.4 Net sales of Construction and 15.8 Infrastructure applications increased by 10.
Slide 8: In 2014 biggest sales growth came from Europe
Financial statements 2014 In 2014 biggest sales growth came from Europe Europe +15% 64.6 56.0 APAC Rest of world +11% 11.8 2.9 (+7.4%) 10.6 2.7 I-12/2014 (MEUR) I-12/2013 (MEUR) Rest of world Europe APAC Net sales in the region Rest General increase in the Weak performance in the of the world increa
Slide 9: Operating profit improved by 83.5% to MEUR 8.9
Financial statements 2014 In 2014 operating profit improved by 83.5% to MEUR 8.9 (4.8) and was 11.2 (7.0) % of net sales Improvement was mainly due to increased sales, improved productivity, continued efficiency improvement, and better cost control Long-term operating profit target of 10% was achiev
Slide 10: Strong balance sheet allows potential investments and acquisitions
Financial statements 2014 Strong balance sheet allows potential investments and acquisitions. Net gearing reduced down to -8.7% 70% 56.9% 60% 50% 40% 30% 20% 10% -8.7% 0% -10% -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 Net gearing, % Equity ratio, % Exe
Slide 11: ROCE improved to 25.2%
Financial statements 2014 ROCE improved to 25.2% due to increased operating profit 30% 60 25.2% Capital employed, MEUR 20% 40 ROCE-% 13.0% 10% 20 0% 0 2010 2011 2012 2013 2014 Capital employed, MEUR ROCE, % - 11 -
Slide 12: Composites market demand expected to grow in volume and value
Market overview Composites market demand expected to grow both in volume and value Material market is dominated by steel and Global materials market plastics Composite market represents 0.4% of total materials market Composite demand is expected to grow +5% per annum in volume and +7% per annum in v
Slide 13: Largest markets are North America, North Asia and Europe
Market overview Largest markets are North America, North Asia and Europe Largest and fastest growing markets are in Asia and North America Currently major share of Exel Composites business is in Europe — Globally third largest market — Growing market but at a slower speed Global pultrusion market (M
Slide 14: Market and mega trends drive new applications and volume growth
Market overview Market and mega trends drive new applications and volume growth • Demand for clean water, clear air and urban infrastructure Urbanization and Megatrends • Investments in Exel’s large markets: building, construction, healthy living infrastructure and transportation Thinking total life
Slide 15: Exel Composites' competitive situation is strong
Market overview Exel Composites’ competitive situation is strong Pultrusion market is fragmented with several hundred competitors globally Exel Composites’ competitive situation is strong because — It is one of the few large pultrusion companies — It has a solid balance sheet and a positive cash flo
Slide 16: Share price development
Share price development Share price development: in 2014 the highest share and major shareholders quotation was EUR 8.80 (6.70) and the lowest EUR 5.56 (5.10) Exel Composites share price development 49.1 (17.0) % of shares outstanding were traded January 2010 – March 2015 in Jan-Dec 2014 Market capi
Slide 17: Major Shareholders on 28 February 2015
Share price development and major shareholders Major Shareholders on 28 February 2015 Number of Percentage of shares share capital Skandinaviska Enskilda Banken AB (nominee reg.) 2,532,192 21.21 Nordea Bank Finland Plc (nominee reg.) 1,182,331 9.93 Nordea Fennia Fund 610,000 5.13 Danske Invest Finni
Slide 18: Outlook for full year 2015
Outlook for full year 2015 – the Company implements its Outlook for full new strategy by reinforcing the organization and by year 2015 increasing its capacity The market has stabilized and we can see positive signs in the Company’s key market segments However, uncertainties relating to general growt
Slide 19: Strategy built on growth
Strategy and targets Strategy built on growth OUR STRENGTHS • Superior customer experience • Clear value proposition • Local presence globally • Top-quality service • World-class operations - 19 -
Slide 20: New vision and long-term financial targets
Strategy and targets Exel Composites’ new vision and long-term financial targets Vision: Exel Composites is an agile, innovative global composite company with world-class operations providing superior customer experience - 20 -
Slide 21: In 2015 focus on continued implementation of our new strategy
Strategy and targets In 2015 focus on continued implementation of our new strategy In 2015 our focus will be on — Accelerating growth in China — Penetrating new applications and new market segments — Creating a true global footprint — Growing through new technologies Exel Composites will continue to
Slide 22: 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 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 Q1 2015 wil