Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Investor Day (March 2019)
37 slides from Exel Composites Oyj's investor day presentation, Mar 4, 2019
Slide 1: Welcome! Capital Markets Day
WELCOME! CAPITAL MARKETS DAY Stockholm, Sweden 4 March 2019 Exel Composites
Slide 2: Your hosts today
Your hosts today Riku Kytömäki Mikko Kettunen President and CEO CFO Exel Composites 2
Slide 3: Agenda
Agenda • 12:30-14:00 – Lunch – Introduction to composites, pultrusion, pullwinding and laminates, Mikko Kettunen, CFO – Presentation by Riku Kytömäki, President and CEO • 14:00-14:30 – Questions and Answers – End of event Exel Composites 3
Slide 4: Introduction to Composites
INTRODUCTION TO COMPOSITES CAPITAL MARKETS DAY Mikko Kettunen CFO Exel Composites
Slide 5: What are composites?
What are composites? COMPOSITES mean a complex material of two or more structurally complementary substances. Combined these produce structural or functional properties not present in any individual component Exel Composites 5
Slide 6: Composite products' unique features and benefits
Composite products’ unique features and benefits Low weight High strength-to-weight ratio High fatigue tolerance Good corrosion and chemical resistance Composites can be utilized Tailored material properties • Fire retardation in various • Thermal insulation demanding • Radio transparency applicatio
Slide 7: Exel Composites pultrusion process
Exel Composites pultrusion process Reinforcements 1 Pulling Resin Device 2 injection Reinforcements mould 4 3 Cutting Device 5 Exel Composites 7
Slide 8: Exel Composites pullwinding process
Exel Composites pullwinding process Reinforce- Cross- ments winding 1 units Pulling Resin 2 Injection Device Mould 4 3 Cutting Device 5 Exel Composites 8
Slide 9: Strong order intake in Q4
STRONG ORDER INTAKE IN Q4 CAPITAL MARKETS DAY Riku Kytömäki, President and CEO 4 March 2019 Exel Composites
Slide 10: Exel Composites in brief
Exel Composites in brief A globally leading composite technology company that designs, manufactures and markets fiber reinforced plastics products and solutions for demanding applications in various segments and markets Industrial Applications: Telecommunication, Paper Customers in over Industry, El
Slide 11: 2018 in brief: Strong order intake in Q4
2018 in brief: Strong order intake in Q4 • Business environment – Wind energy industry predominantly supporting growth – Challenging competitive situation in the telecommunications industry • Operations – Revenue growth was driven by Construction & Infrastructure customer segment and region Rest of
Slide 12: Year 2018 ended on a strong note
Year 2018 ended on a strong note Revenue, EUR million Order intake, EUR million 29.1 26.7 21.4 22.4 18.3 19.0 23.1 19.3 24.7 20.4 18.2 16.4 23.2 25.3 23.4 25.0 19.7 20.2 17.9 20.3 21.5 18.0 22.5 22.0 Q1-Q4 Q1-Q4 Q1-Q4 Q1-Q4 Q1-Q4 Q1-Q4 2016 2017 2018 2016 2017 2018 Adjusted operating profit, Net cas
Slide 13: Key figures Q1-Q4 2018; order intake exceeded 100 MEUR
Key figures Q1-Q4 2018; order intake exceeded 100 MEUR 1.1.-31.12. 1.1.-31.12. Change, EUR thousand 2018 2017 % Order intake 100,757 86,531 16.4 Order backlog 1) 23,685 17,126 38.3 Revenue 96,608 86,255 12.0 Operating profit 2,217 6,081 -63.5 % of revenue 2.3 7.1 Adjusted operating profit 2) 5,018 6
Slide 14: Key figures Q4 2018; German impairments impacted Q4 operating profit
Key figures Q4 2018; German impairments impacted Q4 operating profit 1.10.-31.12. 1.10.-31.12. Change, EUR thousand 2018 2017 % Order intake 29,108 21,433 35.8 Order backlog 1) 23,685 17,126 38.3 Revenue 26,711 22,414 19.2 Operating profit -1,194 1,389 -186.0 % of revenue -4.5 6.2 Adjusted operating
Slide 15: Order intake and revenue increased significantly
Order intake and revenue increased significantly 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 Revenue, EUR million Order backlog, EUR million, end of period Exel Composites 15
Slide 16: Revenue increase driven by acquisitions
Revenue increase driven by acquisitions Revenue bridge 2018, LY vs. ACT Exhange Acquisitions / Volume Sales mix rates divestments Total 15,0 % 10,0 % 12,0 % 5,0 % 13.7 % 0,0 % -0,5 % -5,2 % 4.0 % -5,0 % -10,0 % -15,0 % 1) Volume impact calculated as difference in kilograms of delivered products time
Slide 17: Wind energy industry now represents Exel's largest customer
Wind energy industry now represents Exel’s largest customer Revenue by customer segment, Industrial Applications EUR million 30 25 5.2 20 3.9 15 6.7 12.9 10 5 11.9 8.6 Telecommuni- Paper Electrical Machine Transportation 0 cation Industry Industry Industry Industry Q4 2017 Q4 2018 100 Construction &
Slide 18: 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 61.1 63.8 APAC Rest of the World 17.4 18.1 17.8 4.6 2018 2017 Exel Composites 18
Slide 19: Group-wide cost reduction program initiated to improve profitability
Group-wide cost reduction program initiated to improve profitability 4 20% 3 2 10% 1 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 Adjusted operating profit, EUR million Adjusted operating profit margin, % Operating profit target, % Exel Composites 19
Slide 20: Implementation of cost reduction program continues into 2019
Implementation of cost reduction program continues into 2019 • Initiated in 2018 to improve Group profitability. • Consists, among other things, of: – Optimization of manufacturing footprint in Europe • The manufacturing unit in Germany to be closed by end of April 2019 • Co-determination negotiatio
Slide 21: ROCE at 4.4% for 2018
ROCE at 4.4% for 2018 30% 60 20% 40 10% 20 0% 0 2014 2015 2016 2017 2018 Capital employed, MEUR ROCE, % Exel Composites 21
Slide 22: Earnings per share decreased to 3 cents
Earnings per share decreased to 3 cents, impact of German impairments 14 cents The Board of Directors proposes a dividend of EUR 0.18 per share for the financial year 2018. 0.48 0.36 0.24 0.02 0.03 2014 2015 2016 2017 2018 Exel Composites 22
Slide 23: Share price development 2018
Share price development 2018 Share quotations 2018 Market capitalization on Highest: EUR 7.28 31.12.2018: Lowest: EUR 3.98 EUR 47.3 (77.7) million Average: EUR 5.40 On 31.12. 2018: EUR 4.00 Source: Kauppalehti Exel Composites 23
Slide 24: Major shareholders on 31 December 2018
Major shareholders on 31 December 2018 Number of Percentage of shares share capital Nordea Bank Ab (Publ), Suomen Sivuliike (Nominee 2,249,011 18.90 Registered) Skandinaviska Enskilda Banken AB (Nominee Registered) 1,635,096 13.74 Sijoitusrahasto Taaleritehdas Mikro Markka 630,000 5.30 OP-Finland Sm
Slide 25: Exel Composites vision
Exel Composites vision Exel Composites is an agile, innovative global composite company with world class operations providing superior customer experience We shall differentiate us based on: Superior customer experience World-class operations • Quick response time, reliability, • Safety, speed, flex
Slide 26: Exel Composites strategy
Exel Composites strategy Next level growth Protect and grow strong- Build Penetrate Create true Growth in holds leadership in growing / new global new China applications footprint technologies Grow in existing Grow sales to Penetrate mid- Expand Further business local customers segment operatio
Slide 27: Strategy implementation in 2018
Strategy implementation in 2018 STRATEGY BASED ON FIVE PILLARS In 2018: • Acquisition of In 2018: Diversified Structural • Strengthened position in Composites (DSC) China and APAC; Protect and grow • Foothold in all of the expanded manufacturing Build our stronghold Create most important capacity, l
Slide 28: DSC: synergies in wind energy, among others
DSC: synergies in wind energy, among others DSC acquisition • Important foothold in the strategically significant American market. • An established business, with an existing customer network, a competent team, an operational production facility and interesting technologies. • A platform for cross-s
Slide 29: Oil-well sensor rod out of carbon fiber
Oil-well sensor rod out of carbon fiber • Exel Composites newly acquired Erlanger unit (DSC) has developed fiber optic- embedded carbon composite rod for Norwegian company Ziebel’s innovative well intervention system. • The unit’s expertise in carbon fiber pultrusion enabled the precision manufactur
Slide 30: Composites for airport structures
Composites for airport structures • Requirements: – Stringent safety requirements and regulations – Long lasting and low maintenance systems – Pricing • Benefits of composites: – Frangibility, required strength with lower mass – Resistance to corrosion and weather – Electromagnetic transparency Toda
Slide 31: Innovative rail solutions
Innovative rail solutions • Requirements: – Sustainability – Energy efficiency – Safety and reliability – Cost efficiency • Benefits of composites: – Operational benefits – Reduced lifecycle costs – Enhanced functionality – Sustainability improvements As the rail industry looks to new technologies t
Slide 32: Outlook for 2019
Outlook for 2019 • Exel Composites expects revenue as well as adjusted operating profit to increase in 2019 compared to 2018. Exel Composites 32
Slide 33: More information at www.exelcomposites.com
More information at www.exelcomposites.com Financial calendar 2019 • Business Review January - March: 3 May 2019 • Half Year Financial Report January - June: 23 July 2019 • Business Review January - September: 30 October 2019 Your IR contacts Riku Kytömäki Mikko Kettunen Noora Koikkalainen President
Slide 34: News highlights at www.exelcomposites.com
News highlights at www.exelcomposites.com Subscribe to Exel Composites news and releases: Follow us on social media: Exel Composites 34
Slide 35: Your IR contacts
Your IR contacts Riku Kytömäki Mikko Kettunen Noora Koikkalainen President and CEO CFO IR Manager +358 50 511 8288 +358 50 3477 462 +358 50 562 6552 riku.kytomaki@exelcomposites.com mikko.kettunen@exelcomposites.com noora.koikkalainen@exelcomposites.com USA Erlanger www.exelcomposites.com Exel Compo
Slide 36: Exel Composites
EXELENCE FOR THE WIN A exer” COMPOSITES Exel Composites
Slide 37: Marriage made to win
Marriage made to win REINFORCEMENTS MATRIX Carry loads and give main Bonds and holds the fibres together mechanical performance, and transfer loads between fibre layers. stiffness and strength, to the final product + Matrix determines the chemical resistance and by adjusting the matrix, special prop