Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Q2 2024 Earnings Presentation
21 slides from Exel Composites Oyj's earnings presentation, Aug 15, 2024
Slide 1: Half Year Financial Report Q1-Q2 2024
Half Year Financial Report Q1-Q2 2024 GOOD IMPROVEMENT IN Q2 ORDER INTAKE, REVENUE AND PROFITS − STRENGTHENED FINANCIAL POSITION AFTER RIGHTS ISSUE AND NEW FINANCING AGREEMENT
Slide 2: Half Year Financial Report Q1-Q2 2024 & financial briefing, 15 August 2024
Half Year Financial Report Q1-Q2 2024 & financial briefing, 15 August 2024 Paul Sohlberg Mikko Rummukainen President and CEO CFO Half Year Financial Report Q1-Q2 2024
Slide 3: Q2 2024 highlights
Q2 2024 highlights • Q2 2024 order intake, revenue and operating profit increased • Adjusted operating profit margin 5.2%, turning H1 operating profit positive • Successful rights issue and a new financing agreement strengthened financial position • New operating model with two business units fully
Slide 4: Q2 2024 financial highlights
Q2 2024 financial highlights Order intake Revenue Operating profit Adj. operating profit Adj. operating profit EUR million EUR million EUR million EUR million % 26.4 26.6 1.2 1.4 5.2% +4.0% +4.7% (0.3%) (25.4) (25.4) (-0.2) (0.1) Order intake, EUR million Revenue, EUR million Adjusted operating prof
Slide 5: Operating profit turned to clearly positive
Operating profit turned to clearly positive - Significant improvement in both operating profit and adjusted operating profit The second consecutive upward quarter in adjusted operating profit Positive development in operating profit due to • increased order intake and revenue • actions to optimize c
Slide 6: Revenue in Q2 2024 grew in all customer industries apart from Energy and Other
Revenue in Q2 2024 grew in all customer industries apart from the Energy sector and Other Revenue by customer industry, Revenue share by customer industry, EUR million % 25.4 26.6 7.6 7.5 4.0 5.0 5.4 4.5 3.4 4.2 5.0 5.5 Q1-Q2 2023 Q1-Q2 2024 Q2 Q2 2023 2024 Buildings and Industrial Energy Transporta
Slide 7: Order backlog 31% higher than a year ago
Order backlog 31% higher than a year ago - Increase in order intake resulted in revenue growth in Q2 • Order intake increased to EUR 55.0 million for H1 2024. • Markets developed in line with our expectations. • Increased customer activity in most of our strategic industries, in construction market
Slide 8: New operating model based on two business units now fully operational
New operating model based on two business units now fully operational
Slide 9: Engineered Solutions Business Unit: Tailored solutions in multiple industries H1 2024
Engineered Solutions Business Unit: Tailored solutions in multiple industries H1 2024 • Markets picked up and demand developed favorably, especially in defense applications and tubes • New customers in the USA, particularly in the building and infrastructure sector • Many orders received in the firs
Slide 10: Industrial Solutions Business Unit: Selected applications with significant growth potential H1 2024
Industrial Solutions Business Unit: Selected applications with significant growth potential H1 2024 • Significant customer agreements signed in H1 2024, including multi-year agreements with a major wind turbine manufacturer to deliver carbon fiber planks for spar caps from our new factory in India a
Slide 11: New partnerships in the first half 2024
New partnerships in the first half 2024 Partnership with Flying Whales airship company New multi-year agreement with Foton Bus and Partnership with Fairmat to close the loop Coach company of carbon fiber waste • Cooperation to design carbon fiber tubes to the airship’s fuselage • Pultruded parts to
Slide 12: Guidance and outlook
Guidance and outlook Guidance for 2024 (unchanged) Exel Composites expects revenue to increase and adjusted operating profit to increase significantly in 2024 compared to 2023 Outlook Macroeconomic sentiment remains indecisive and has even shown some signs of cooling off during the summer. Uncertain
Slide 13: Strategy implementation accelerated
Strategy implementation accelerated Confidential
Slide 14: The funds raised in the share issue accelerate our strategic initiatives
The funds raised in the share issue accelerate our strategic initiatives • Share issue clearly oversubscribed: 141% of offer shares subscribed • Exel gained gross proceeds of EUR 21.8 million, which will be used for • investments to support Exel’s growth • financing of working capital needs • strate
Slide 15: Target over EUR 200 million revenue and strong profits
Target over EUR 200 million revenue and strong profits Revenue GROWTH >200 MEUR ~2025-2027 STABILITY & Adjusted EBIT PROFITABILITY • Leverage & develop new margin >10% ~2024-2025 product platforms • Enhance operational Net debt to EBITDA • Two distinct business units capabilities & increase < 3x • F
Slide 16: Status of strategy implementation
Status of strategy implementation Action Status Comment Decision to build a new manufacturing facility in India for wind power industry Completed customers Strategic factory review 1 (USA) Completed New operating model established Completed Aligning resources within new business Completed units Righ
Slide 17: Equipping of the new production facility in India accelerated – production to start in 2024
Equipping of the new production facility in India accelerated – production to start in 2024 In July 2023, Exel announced a strategic decision to expand its manufacturing operations in India and to build a new facility near Goa The facility is optimized for serving wind power industry customers in In
Slide 18: Achievements in sustainability
Achievements in sustainability • Focusing on waste and emissions reduction and circularity • Carbon footprint reduction in both materials and own operations • Exel is progressing towards reaching zero waste to landfill target • Audits of waste streams conducted • Preparations to introduce bio-based
Slide 19: Q2 key takeaways
Q2 key takeaways • Third consecutive upward quarter in revenue, second in adjusted operating profit • Operating profit turned to positive with significant improvement y-on-y • Positive operative cash flow of EUR 2.6 million in H1 • Increased customer activity in most strategic industries, order back
Slide 20: Thank you!
Thank you! Q&A Next financial report: Q2 2024 results 31 October 2024 Q1-Q3 2024 Business Review
Slide 21: For Forward Thinkers
FOR FORWARD THINKERS