Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Shareholder Meeting (April 2009)
29 slides from Exel Composites Oyj's shareholder meeting presentation, Apr 16, 2009
Slide 1: eawweai wo
eawweai wo Gwe Ge COMPOSITES COMPOSITES
Slide 2: Annual General Meeting 2009
Annual General Meeting 2009 Exel Oyj Vesa Korpimies, President and CEO 16 April 2009
Slide 3: Vesa Korpimies – CEO as of April 2008
Vesa Korpimies – CEO as of 10 April 2008 • Born 1962 • M.Sc. (Econ.) • Joined the Company in 1987 • Executive Vice President since 2000 • Holdings: 70,300 Exel shares • Finnish citizen
Slide 4: Introduction
TN Introduction DY COMPOSITES
Slide 5: Composites only constitute a small part of the material needs in the world
Composites only constitute a small part of the material needs in the world Competing materials (US market example) The market share of composites is small compared to other materials such as steel, plastics or aluminium Source: E-Composites
Slide 6: Pultrusion constitutes 3% of composites manufacturing processes
Pultrusion as a production method constitutes 3% of different composites manufacturing processes Composites manufacturing processes Pultrusion 3% Other 97 % Pultrusion Other Source: E-Composites
Slide 7: Exel Composites is a leading company in composite profile business with ca. 10% market share
Exel Composites is a leading company in composite profile business with ca. 10% market share • Pultrusion/Composite profile market ca. USD 1200 million (source: E-Composites) • Annual average growth of the market 4-5% • The industry is fragmented with 300-400 pultrusion companies in the world. • The
Slide 8: Exel Composites has been an active consolidator in the industry
Exel Composites has been an active consolidator in the industry and is today the world’s first international pultrusion company Acquisitions in the pultrusion business • 2001: Acquisition of Menzolit-Fibron, Germany • 2004: Acquisition of Bekaert, Belgium • 2005: Acquisition of Faserprofil, Austria
Slide 9: Composites technology has unique product features & benefits
Composites technology has unique product features & benefits Light weight High-speed textile machines, machine parts High strength and stiffness Bridge concrete reinforcements and weight/density ratio Good chemical resistance Waste water treatment Corrosion free Chemical industry, off shore applicat
Slide 10: Exel Composites focuses on advanced composite solutions
Exel Composites focuses on advanced composite solutions • Composite is a combination of two materials – Reinforcements (Carbon Fiber, Glass Fiber) – Resin systems (Epoxy, Vinylester) • The core of the operations is based on own, internally developed composite technology • Continuous manufacturing te
Slide 11: Exel Composites has a strong market share in selected niche markets
Exel Composites has a strong market share in selected niche markets • Over 1,000 glass and carbon fiber profile applications • Transportation • Building/infrastructure • Energy industry • Telecommunication • Paper industry
Slide 12: Exel Composites has a strong market share in selected niche markets
Exel Composites has a strong market share in selected niche markets • Electrical industry • Cleaning and maintenance • Sport and leisure industry • Machine industry • General industries
Slide 13: Financial review
Financial review
Slide 14: 2008 was a challenging financial year for Exel and a year of structural change
2008 was a challenging financial year for Exel and a year of structural change Net sales 2008 2007 Change Operating profit 2008 2007 Change Exel Composites 86.7 104.3 -16.9% Exel Composites 9.2 15.2 -39.1% Exel Sports Brands 10.0 13.6 -26.6% Exel Sports Brands -9.0 -10.7 -15,7% Total 94.9 113.5 -16.
Slide 15: Cost and capital reduction programs had a positive effect on cash flow
Comprehensive cost and capital reduction programs had a positive effect on cash flow Cash flow from business operations 16,0 14,0 12,0 10,0 MEUR 8,0 6,0 4,0 2,0 0,0 2002 2003 2004 2005 2006 2007 2008 Cash flow from business operations EUR 11.1 million
Slide 16: Net debt was reduced by 26% to EUR 20.7 million, but gearing is still too high
Net debt was reduced by 26% to EUR 20.7 million, but gearing is still too high Net gearing ratio 2008 Equity ratio 2008 123.9% (118.4%) 28.2% (31.3%) 140 % 60 % 120 % 50 % 100 % 40 % 80 % 30 % 60 % 20 % 40 % 20 % 10 % 0% 0% 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008
Slide 17: Exel Composites' net sales decreased, however strong sales in telecommunication and airport masts
Exel Composites’ net sales decreased, however, strong sales in telecommunication and airport masts • Net sales in 2008 decreased by 16.9% over the previous year to EUR 86.7 (104.3) million Net sales • Main reasons: 120 100 – Procurement model change in the wind 80 MEUR energy segment 60 40 – Divestm
Slide 18: Exel Composites' operating profit was affected by lower sales and increased raw material costs
Exel Composites’ operating profit was affected by lower sales and increased raw material costs • Operating profit in 2008 totaled Operating profit EUR 9.2 (15.2) million including EUR -1.1 (-0.7) million non- 16 recurring items 14 12 – Non-recurring items related to 10 Exel Composites’ sub- MEUR con
Slide 19: Structural measures taken for Exel Sports Brands – Outdoor divested
Structural measures taken to find long-term solution for Exel Sports Brands – Outdoor divested in 2008 • Despite strong measures, Net sales profitability in Exel Sports Brands has not been enough to restore 40 35 profits to previously good levels 30 25 MEUR 20 15 • In May 2008, Outdoor business was
Slide 20: Exel Sports Brands divestment completed in 2009 – long-term license agreements
Exel Sports Brands divestment completed in 2009 – long-term license agreements for Exel • The business transfers of Exel Sports Brands secures the continued presence and distribution of Exel sporting goods products in a model that strengthens Exel’s profitability • Long-term licensing agreements wit
Slide 21: Focus now for the first time only on the core business, B-to-B
Focus now for the first time only on the core business, B-to-B Exel Composites We have: Exel’s target is to: • Excellent technical know-how • Strengthen its position in • Multinational expertise to serve large chosen markets international customers • Continue the consolidation • A profit focused org
Slide 22: Exel Composites' net sales almost tenfolded in 1998-2008
Exel Composites’ net sales almost tenfolded in 1998-2008 Exel Composites’ net sales 1998-2008 120 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 23: Exel's Industry Division's growth has been profitable
and Exel’s Industry Division’s growth has been profitable Exel Composites operating profit 1998-2008 16 14 12 10 8 6 4 2 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 24: Vision
Vision • Exel is a leading supplier of advanced composite profiles to the selected niche market segments • Exel’s objective is to generate good returns for the company’s shareholders • Exel’s specialized total service, high quality products and long-term partnerships earn company the trust and confi
Slide 25: Strategy
Strategy • Exel Composites continues its strategy of profitable growth and pursuing international leadership in the pultrusion industry • Focus on establishing leading positions in selected market segments characterized by attractive growth and profitability attributes • Concentration on designing,
Slide 26: Exel Group's financial targets and dividend policy
Exel Group’s financial targets and dividend policy • Growth: the objective is that Exel 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’s target is the operating profit to exceed 1
Slide 27: Many growing markets – Opportunities for Exel Composites
Many growing markets – Opportunities for Exel Composites • Traditional materials are constantly being replaced by Composites • Growth opportunities for Composites in many segments, e.g. – Water Treatment – Energy Industry – Machine Industry – Window and Door Profiles
Slide 28: Short-term priorities are to strengthen financial position and to increase sales focus
Short-term priorities are to strengthen financial position and to increase sales focus • Managing the cash flow, streamlining the OWC and amortizing debt • Moving forward in operational efficiency • Driving down raw material prices – Reducing set up times – Increasing yield Due to the market uncerta
Slide 29: www.exelcomposites.com
eawweai wo Gwe Ge COMPOSITES www.exelcomposites.com