Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Shareholder Meeting (March 2010)
27 slides from Exel Composites Oyj's shareholder meeting presentation, Mar 31, 2010
Slide 1: Reinforcing your business
A exer” COMPOSITES Reinforcing your business
Slide 2: Annual General Meeting 31 March 2010
Annual General Meeting 31 March 2010 Exel Composites Plc Vesa Korpimies, President and CEO
Slide 3: Agenda
Agenda • Restructuring and financial position the Group • Markets and market position • Targets and strategy
Slide 4: We were able to protect profitability during the financial crisis despite a decline in net sales
We were able to protect profitability during the financial crisis despite a decline in net sales MEUR EBIT % 4
Slide 5: In response to the challenges we launched a comprehensive restructuring program
In response to the challenges we launched a comprehensive restructuring program • First priority was to focus on profitability and cash flow management to reduce financial risk – Streamlined operations and reduced the cost base – Improved cash management and reduced operative working capital – Focus
Slide 6: EPS and financial position improved during a very challenging year
Exel Composites’ EPS and financial position improved during a very challenging year • Improved fully diluted EPS to EUR 0.56 (-0.25) – EPS from continuing operations improved to EUR 0.50 (0.34) – EPS from discontinued operations improved to EUR 0.06 (-0.59) • Cash flow from operations MEUR +14.2 (+1
Slide 7: Group restructuring completed, fully diluted EPS improved, focus in future on profitable growth
Group restructuring completed, fully diluted EPS improved, focus in future on profitable growth Fully diluted EPS 2009 improved to EUR 0.56 (-0.25) 7
Slide 8: Comprehensive cost and capital reduction program improved the cash flow
Comprehensive cost and capital reduction program improved the cash flow Cash flow from business operations MEUR 14.2 (11.1) 7,00 6,00 6,20 5,50 5,00 4,50 4,00 3,00 3,20 3,00 2,40 2,00 1,00 0,50 -0,20 0,00 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 -1,00 8
Slide 9: The Group's financial position was strengthened, we paid back debt ~ MEUR 10
The Group’s financial position was strengthened, we paid back debt ~ MEUR 10 Net gearing improved to 23.7 (123.9) % 9
Slide 10: Staff numbers decreased due to the rationalization program
Staff numbers decreased due to the rationalization program • On 31 December 2009 the number of Exel Composites Group employees was 419 (472) of whom 183 (208) persons in Finland and 236 (264) abroad • The Group employed Changes in Group management: – Mr. Grant Pearce, MD of Exel Composites Australia
Slide 11: Consolidated key figures
Consolidated key figures 2009 2008 Net sales, continuing operations, MEUR 70.0 84.9 Operating profit, continuing operations, 8.0 8.6 MEUR % of net sales 11.4 10.1 Profit for the period, continuing operations, MEUR 5.9 4.0 ROCE, % 20.9 0.0 Net gearing, % 23.7 123.9 Solvency ratio, % 44.6 28.2 EPS, EU
Slide 12: Year 2009 in brief
Year 2009 in brief • We completed Group restructuring and focused on core industrial activities • Successful turnaround accomplished despite a very challenging year • Small signs of recovery could be seen during the year: – New applications in the building, construction and infrastructure market – N
Slide 13: Exel Composites Total Shareholder Return 2009 was 98 % compared to HEX 26 %
Exel Composites Total Shareholder Return 2009 was 98 % compared to HEX 26 % Total Shareholder Return (TSR) development 2009 – EUR per share 7 6 5 4 3 2 Exel Composites HEX (indexed)
Slide 14: Agenda
Agenda • Restructuring and financial position of the Group • Markets and market position • Targets and strategy
Slide 15: Exel Composites is a leading company in composite profile business
Exel Composites is a leading company in composite profile business • Pultrusion/Composite profile market ~ EUR 1 billion (source: E-Composites) • The industry is fragmented with 300-400 pultrusion companies in the world 15
Slide 16: Exel Composites provides tailored solutions to its customers
Exel Composites provides tailored solutions to its customers Light weight High-speed textile machines, machine parts, transportation equipment High strength and stiffness Bridge concrete reinforcements, and weight/density ratio light structure applications Good chemical resistance Waste water treatm
Slide 17: Exel Composites has a strong market share in selected niche markets
Exel Composites has a strong market share in selected niche markets • Transportation • Building/infrastructure • Energy industry • Telecommunication • Paper industry 17
Slide 18: Over 1,000 glass and carbon fiber profile applications
Over 1,000 glass and carbon fiber profile applications • Electrical industry • Cleaning and maintenance • Sport and leisure industry • Machine industry • General industries
Slide 19: Only composite profile manufacturer able to offer genuinely international services
Exel Composites is the only composite profile manufacturer able to offer genuinely international services to its customers
Slide 20: Agenda
Agenda • Restructuring and financial position of the Group • Markets and market position • Targets and strategy
Slide 21: Exel Composites is well positioned for future growth
Exel Composites is well positioned for future growth • Exel Composites is today a group focusing on key industrial activities with less operational and financial risks than in 2008 – Competitive in costs and innovative in product development – Reinforced sales organization – Strong balance sheet to
Slide 22: Our short-term priorities are to further increase sales focus and to improve productivity
Our short-term priorities are to further increase sales focus and to improve productivity • In 2010 our priorities are sales and developing new applications with our customers • We continue to improve productivity and cost efficiency • Idle capacity utilization allows us to grow without major invest
Slide 23: Many growing markets/opportunities, traditional materials are constantly being replaced by composites
Many growing markets/opportunities, traditional materials are constantly being replaced by composites • Growth opportunities in many segments: – Window and Door Profiles – Energy Industry – Machine Industry – Water Treatment 23
Slide 24: Strategy of profitable growth and international leadership in the pultrusion industry
Exel Composites continues its strategy of profitable growth and pursuing international leadership in the pultrusion industry • Our target is to be the leading provider in selected niche market segments characterized by attractive growth and profitability attributes • Exel Composites focuses on desig
Slide 25: Exel Composites has been one of the few consolidators in the industry
Exel Composites has been one of the few consolidators in the industry, we keep a close look on the market Acquisitions in the pultrusion business • 2001: Acquisition of Menzolit-Fibron, Germany • 2004: Acquisition of Bekaert, Belgium • 2005: Acquisition of Faserprofil, Austria • 2006: Acquisition of
Slide 26: Exel Composites' long-term financial targets over a business cycle
Exel Composites’ long-term financial targets over a business cycle • Growth: the objective is that Exel Composites Group’s average organic growth annually exceeds market growth of the industry. Growth achieved through acquisitions is part of Exel’s strategy. • Operating profit: Exel Composites’ oper
Slide 27: Exel Composites 1960-2010
Exel Composites 1960-2010 COMPOSITES