Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — H1 2019 Earnings Presentation
20 slides from Exel Composites Oyj's earnings presentation, Jul 23, 2019
Slide 1: Half-year Financial Report January-June 2019
BUSINESS VOLUME CONTINUED ON A GOOD LEVEL, COST SAVINGS PROGRAM PROGRESSED ACCORDING TO PLAN Half-year Financial Report January-June 2019 23 July 2019 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: H1 2019 in brief
H1 2019 in brief • Business environment – Strong revenue growth in Construction & Infrastructure, supported by wind energy industry. – Strong increase in wind energy was partly offset by decrease in telecommunications industry. – Geographically, revenue increased significantly in Rest of the World;
Slide 4: Quarterly highlights
Quarterly highlights Revenue, Order intake, EUR million EUR million 29.1 26.7 21.4 22.4 23.1 19.3 24.7 20.4 26.5 23.4 25.0 23.8 23.2 25.3 20.3 21.5 27.1 22.5 22.0 28.2 Q1-Q4 Q1-Q4 Q1-Q2 Q1-Q4 Q1-Q4 Q1-Q2 2017 2018 2019 2017 2018 2019 Adjusted operating profit, Net cash flow, EUR million EUR million
Slide 5: Key figures H1 2019
Key figures H1 2019 1.1.-30.6. 1.1.-30.6. Change, 1.1.-31.12. EUR thousand 2019 2018 % 2018 Order intake 51,977 46,975 10.6 100,757 Order backlog 1) 21,977 19,828 10.8 23,685 Revenue 53,572 46,796 14.5 96,608 Operating profit 2,549 2,951 -13.6 2,217 % of revenue 4.8 6.3 2.3 Adjusted operating profit
Slide 6: Key figures Q2 2019
Key figures Q2 2019 1.4.-30.6. 1.4.-30.6. Change, 1.1.-31.12. EUR thousand 2019 2018 % 2018 Order intake 23,821 25,004 -4.7 100,757 Order backlog 1) 21,977 19,828 10.8 23,685 Revenue 26,482 25,277 4.8 96,608 Operating profit 2,144 1,321 62.3 2,217 % of revenue 8.1 5.2 2.3 Adjusted operating profit 2
Slide 7: Order backlog at a healthy level of EUR 22.0 million
Order backlog at a healthy level of EUR 22.0 million 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 Revenue, EUR million Order backlog, EUR million, end of period Exel Composites 7
Slide 8: Net revenue increase mainly due to the acquisition of DSC
Net revenue increase mainly due to the acquisition of DSC Revenue bridge H1, LY vs. ACT Acquisitions / Volume Sales mix Exhange rates divestments Total 18% 16% 0,144798701 14% 12% 10% 10.0 % 14.5 % 8% 6% 0.0 % 0.2 % 4% 2% 4.3 % 0% 1) Volume impact calculated as difference in kilograms of delivered p
Slide 9: Strong growth in Construction & Infrastructure
Strong growth in Construction & Infrastructure Revenue by customer segment, EUR million Industrial Applications 30 5.5 6.0 20 8.6 10.9 10 11.2 9.5 0 Telecommuni- Paper Electrical Machine Transportation cation Industry Industry Industry Industry Q2 2018 Q2 2019 60 Construction & Other 12.5 Infrastruc
Slide 10: Revenue growth in Rest of the World driven by acquisition of DSC
Revenue growth in Rest of the World driven by acquisition of DSC Revenue by market area, EUR million Europe 32.9 33.1 APAC Rest of the World 8.2 12.5 8.1 5.6 Q1-Q2 2019 Q1-Q2 2018 Exel Composites 10
Slide 11: Adjusted operating profit improved slightly from last year
Adjusted operating profit improved slightly from last year 4 20% 3 2 10% 1 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 Adjusted operating profit, EUR million Adjusted operating profit margin, % Operating profit target, % Exel Composites 11
Slide 12: Implementation of cost reduction program continued in Q2
Implementation of cost reduction program continued in Q2 • Initiated in 2018 to improve Group profitability. • Consists, among other things, of: – Optimization of manufacturing footprint in Europe • Focus in Q1 on closing production in Germany (completed in April) – Improve the profitability and cos
Slide 13: ROCE at 8.7% in H1 2019
ROCE at 8.7% in H1 2019 20% 80 60 10% 40 20 0% 0 2015 2016 2017 2018 Q1-Q2 2019 Capital employed, MEUR ROCE, % Exel Composites 13
Slide 14: Strategy confirmed for 2019-2022
Strategy confirmed for 2019-2022 • Overall strategic direction remains unchanged and is based on five pillars: Protect and grow our stronghold Build customers Create leadership Providing true in China competitive edge global and best customer footprint service New Penetrate composites growing/ new t
Slide 15: Long-term financial targets confirmed, target for net gearing introduced
Long-term financial targets confirmed, target for net gearing introduced Growth Profitability Capital efficiency Financial position Revenue growth Adjusted operating Return on capital employed Net gearing 2x market growth * profit margin >10% > 20% ≤ 60% 100% 80% 20% 10% 20% 60% 10% 10% 40% 5% 20% 0
Slide 16: Investment decision to build a new factory in Austria
Investment decision to build a new factory in Austria • Exel Composites announced its decision to expand its operations in Kapfenberg, Austria, by investing in a new manufacturing facility. • Construction is expected to be completed in the second half of 2020. The leasing agreement of the current fa
Slide 17: Outlook for 2019
Outlook for 2019 (unchanged) Exel Composites expects revenue as well as adjusted operating profit to increase in 2019 compared to 2018. Exel Composites 17
Slide 18: 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 an
Slide 19: 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 19
Slide 20: Thank you!
THANK YOU! OL. Exel Composites