Exel Composites Oyj · OMXHEX:EXEL
Exel Composites Oyj — Shareholder Meeting (March 2012)
29 slides from Exel Composites Oyj's shareholder meeting presentation, Mar 29, 2012
Slide 1: Annual General Meeting 29 March 2012
Annual General Meeting 29 March 2012 Vesa Korpimies President and CEO -1-
Slide 2: Contents
Contents Highlights 2011 Financial Statements 2011 Markets and market position Targets and strategy -2-
Slide 3: Highlights 2011: Strong growth continued until Q4
Highlights 2011 Strong growth continued until Q4 Net sales increased by 16.8 per cent to MEUR 85.1 (72.9) — The first half of 2011 was marked with strong growth — The growth started to level off in Q4 2011 Operating profit improved 17.5 per cent to MEUR 11.1 (9.4) Cash flow from business operations
Slide 4: Platform for sustainable profitable growth was reinforced
Highlights 2011 Platform for sustainable profitable growth was reinforced We continued to invest more resources in sales and customer-driven product development — Kim Sjödahl appointed SVP Product & Technology Development and member of Group Management Team Decisions were made to invest into five ne
Slide 5: Outline
Outline Highlights 2011 Financial statements 2011 Market and position Targets and strategy -5-
Slide 6: Key figures in 2011
Financial statements 2011 Key figures in 2011 MEUR 2011 2010 Change Net sales 85.1 72.9 +16.8% Operating profit 11.1 9.4 +17.5% Operating profit excluding non- recurring items 10.6 8.0 +32.5% Operating profit (%) 13.0 12.9 Operating profit (%) excluding non-recurring items 12.4 11.0 Net operative ca
Slide 7: Full year net sales increased to MEUR 85.1 (72.9)
Financial statements 2011 Full year net sales increased to MEUR 85.1 (72.9), up by 17% Full year net sales increased to Net sales (MEUR) MEUR 85.1 (72.9), up by 17% 100 Net sales growth was fast in the 90 first half of 2011 but growth started 80 to level off in the second half 70 Building and constr
Slide 8: Operating profit increased to MEUR 11.1 (9.4), up by 17.5%
Financial statements 2011 Operating profit increased to MEUR 11.1 (9.4), up by 17.5% Full year operating profit increased Operating profit to MEUR 11.1 (9.4), up by 17.5% 16 16 % Full year operating profit margin as Operating profit margin (% of net sales) 14 13,0% 14 % a percentage of net sales was
Slide 9: Positive cash flow continued in 2011
Financial statements 2011 Positive cash flow continued in 2011 In January - December 2011 cash Operative cash flow (MEUR) flow from business operations was 16 MEUR 9.6 (12.0) 14 In October - December 2011 cash flow from business operations was 12 MEUR 3.1 (5.1) 10 Capital expenditure increased to ME
Slide 10: EPS improved to EUR 0.67 (0.57)
Financial statements 2011 EPS improved to EUR 0.67 (0.57) Earnings per share improved to EUR 0.67 (0.57) Total shareholder return in 2011 was 15 (36) per cent Board proposal for dividend EUR 0.50 (0.50) - 10 -
Slide 11: Net gearing and equity ratio
Financial statements 2011 Financial position remained strong, net interest-bearing loans were reduced to MEUR -1.7 (-1.4) Net gearing and equity ratio 200 % 178 % 80 % 62 % 150 % 60 % Net gearing (%) Equity ratio (%) 100 % 40 % 25 % 50 % 20 % -5 % 0% 0% -50 % -20 % Q1/11 Q2/11 Q3/11 Q4/11 Q1/08 Q2/0
Slide 12: Near-term business risks
Financial statements 2011 Near-term business risks The most significant business risks are related to the general economic development, government regulations and a possible new financial crisis in the Euro area as well as to market demand in certain market segments Raw material prices and other cos
Slide 13: Measures to reduce impact of anti-dumping tariff on Chinese glass fiber
Financial statements 2011 We have taken measures to reduce the impact of the anti-dumping tariff on Chinese glass fiber The European Commission raised a new anti-dumping investigation on imported Chinese glass fiber in August 2011. In September 2010, the Commission imposed an anti-dumping tariff of
Slide 14: Outline
Outline Highlights 2011 Financial statements 2011 Market and position Targets and strategy - 14 -
Slide 15: Exel Composites is the global #1 composite profile provider
Market and position Exel Composites is the global #1 composite profile provider Market share 2008 (MUSD) Exel Composites 11 % Strongwell Corp. 7% Werner Company 6% Louisville 3% Creative Pultrusions 3% Others JAMCO 61 % Tricam Industries 3 % 2% Bedford Reinforcement Glassforms Inc. 2% 2% Source: Luc
Slide 16: Exel Composites has a history of profitable growth
Market and position Exel Composites has a history of profitable growth 120 30 % 105 104 Operating profit margin (% of net sales) 100 25 % 87 85 80 19,0 % 20 % Net sales (MEUR) 18,1 % 18,1 % 73 70 16,2 % 14,9 % 14,6 % 60 57 15 % 12,9 % 13,0 % 12,3 % 48 11,0 % 11,4 % 40 10,8 % 10 % 10,7 % 29 25 8,5 %
Slide 17: Unique composite product features and benefits
Market and position Unique composite product features and benefits can be utilized in various demanding applications • Light weight • Strength and stiffness • Versatile structural alternatives (optimization) • Good chemical resistance • Wide operating temperature • Fire retardant systems available •
Slide 18: Innovation through combining customer and Exel know-how
Market and position Innovation happens through combining customer’s and Exel Composites’ core know-how - 18 -
Slide 19: Products for a wide range of applications
Market and position Exel Composites offers products for wide range of applications TUBES TOOLHANDLES AND TELESCOPES Exel is the world’s largest manufacturer of Exel’s series of toolhandles and thin-walled pull-wound tubes and hollow telescopic poles offer the right products profiles for demanding pr
Slide 20: Advanced solutions utilized in several market segments
Market and position Exel Composites’ advanced solutions are utilized in several market segments Examples of typical applications within following market segments: • Transportation Industry • Building, Construction & Infrastructure • Energy Industry • Telecommunication • Paper Industry • Electrical I
Slide 21: Outline
Outline Highlights 2011 Financial statements 2011 Market and position Targets and strategy - 21 -
Slide 22: Vision was redefined
Targets and strategy Vision was redefined Exel Composites is a customer-driven, leading provider of advanced composite solutions; being dynamic and innovative we reinforce your business — Customer satisfaction is the key element of our vision — We focus on OEM-customers and deliver advanced and nich
Slide 23: Our Strategy is to achieve profitable growth
Targets and strategy Our Strategy is to achieve profitable growth Exel Composites provides demanding, customer-tailored composite solutions for industrial applications in selected market segments Exel Composites’ target is growth ahead of the market while maintaining good profitability - 23 -
Slide 24: Group financial targets over a business cycle
Targets and strategy Exel Composites Group’s financial targets over a business cycle - 24 -
Slide 25: Total Shareholder Return 2011 was 15%
Total Shareholder Return Exel Composites Total Shareholder Return 2011 was 15% compared to OMX Helsinki GI - 27% Source: Factset - 25 -
Slide 26: Major Shareholders on 1 March 2012
Major shareholders Major Shareholders on 1 March 2012 Number of Percentage of shares share capital Nordstjernan AB 3,496,506 29.39 Ilmarinen Mutual Pension Insurance Company 689,400 5.79 OP-Suomi Small Cap Inv. Fund 540,000 4.53 Ulkomarkkinat Oy 480,000 4.03 Fondita Nordic Micro Cap Inv. Fund 450,00
Slide 27: Share price development
Share price development Share price development Exel Composites share price development 11.6 (19.3) % of shares January 2011 – March 2012 outstanding were traded in 2011 The highest share quotation was EUR 9.40 (7.25) and the lowest EUR 6.75 (5.00) The share price closed at EUR 7.65 (7.06) and the m
Slide 28: Outlook for 2012
Outlook for 2012 Outlook for 2012 The Exel Composites Group had a strong performance in 2011 with sales and operating profit developing favorably In the fourth quarter 2011 overall demand softened. There are major uncertainties relating to general growth prospects in the economy, and these uncertain
Slide 29: Exel Composites strategy targets profitable growth globally
Summary Exel Composites strategy targets profitable growth globally Exel Composites has a history of profitable growth and is the global #1 composite profile provider Our strategy targets to continue profitable growth globally – Organic growth faster than market and selected acquisitions We continue