q4 2016 operating profit at previous year’s level … · 2020-06-22 · volume sales mix exhange...
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Exel Composites Plc
Q4 2016 OPERATING PROFIT AT PREVIOUS
YEAR’S LEVEL DESPITE LOWER REVENUE AND
LESS FAVORABLE SALES MIX
Riku Kytömäki
President and CEO
14.2.2017
Exel Composites Plc 2
• Business environment
– Challenging market environment
– Generally lower demand and
toughened competition in key
markets such as
telecommunications
– Less favorable sales mix
– New customer acquisition not
enough to compensate
• Operations
– Successful cost savings measures
– Efficient capacity utilization and
production optimization
• Financial performance
– Cost reduction measures improved
Q4 2016 profitability
– Adjusted operating profit for Q3
and Q4 2016 higher or at the same
level as in the same periods
previous year
2016 in brief
Exel Composites Plc 3
17.8 21.5 17.9
21.4 21.419.7
19.0 18.016.4
21.1 19.319.0
Q1-Q42014
Q1-Q42015
Q1-Q42016
Revenue, EUR million
1.9 2.0 0.1
3.11.5
1.2
2.3
0.5
0.6
2.1
0.7
0.7
Q1-Q42014
Q1-Q42015
Q1-Q42016
Adjusted operating profit, EUR million
21.8 22.8 18.0
21.4 21.420.2
20.8 18.718.2
18.4 20.518.3
Q1-Q42014
Q1-Q42015
Q1-Q42016
Order intake, EUR million
0,6 0,7-0,9
2,4 1,70,3
3,8
0,52,5
3,8
0,5 1,2
Q1-Q42014
Q1-Q42015
Q1-Q42016
Net cash flow, EUR million
Q1-Q4 2016 highlights
Exel Composites Plc 4
EUR thousand
1.1.-31.12.
2016
1.1.-31.12.
2015
Change
%
Order intake 74,778 83,374 -10.3
Order backlog 1)16,702 15,348 8.8
Revenue 73,079 80,196 -8.9
Operating profit 649 4,414 -85.3
% of revenue 0.9 5,5
Adjusted operating profit 2)2,621 4,770 -45.1
% of revenue 3.6 5.9
Profit for the period 198 2,844 -93.0
Net cash flow 3,129 3,385 -7.6
Return on capital employed, % 1.7 12.0
Net gearing, % 12.2 2.0
Earnings per share, EUR 0.02 0.24
Equity per share, EUR 2.27 2,58 -12.0
Employees on average 479 498 -3.8
Employees at end of period 455 494 -7.9
Key figures Q1-Q4 2016
1) As per 31 December 2016.2) Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and
costs related to planned or realized business acquisitions or disposals. For more information, please refer to the
paragraph “Change in Exel Composites’ financial reporting terminology” of the Half-year Financial Report January –
June 2016.
Exel Composites Plc 5
EUR thousand
1.10.-31.12.
2016
1.10.-31.12.
2015
Change
%
Order intake 18,334 20,466 -10.4
Order backlog 1)16,702 15,348 8.8
Revenue 19,009 19,343 -1.7
Operating profit -1,209 609 -298.5
% of revenue -6.4 3.1
Adjusted operating profit 2)708 673 5.2
% of revenue 3.7 3.5
Profit for the period -1,065 409 -360.4
Net cash flow 1,157 477 142.6
Return on capital employed, % -12.5 6.8
Net gearing, % 12.2 2.0
Earnings per share, EUR -0.09 0.03
Equity per share, EUR 2.27 2.58 -12.0
Employees on average 457 493 -7.3
Employees at end of period 455 494 -7.9
Key figures Q4 2016
1) As per 31 December 2016.2) Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and
costs related to planned or realized business acquisitions or disposals. For more information, please refer to the
paragraph “Change in Exel Composites’ financial reporting terminology” of the Half-year Financial Report January –
June 2016.
Exel Composites Plc 6
Lower demand in key markets;
new customers not enough to compensate
• Order backlog at a historically high level.
0
5
10
15
20
25
0
5
10
15
20
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014 2015 2016
Revenue and order backlog
Revenue, EUR million
Order backlog, EUR million, end of period
Exel Composites Plc 7
-8,9 %
-1,2 %
-6,1 %
-1,6 %
0,0 %-10,0 %
-9,0 %
-8,0 %
-7,0 %
-6,0 %
-5,0 %
-4,0 %
-3,0 %
-2,0 %
-1,0 %
0,0 %
Volume Sales mix Exhange ratesAcquisitions /divestments Total
Revenue bridge 2016 vs. 2015
Less favorable sales mix reduced
revenue
1) Volume impact calculated as difference in kilograms of delivered products
times prior year average sales price/kg.
1)
Exel Composites Plc 8
Lower demand impacted key markets
such as telecommunications
11.2 11.3
4.5 4.2 3.7 3.6
Q4 2015 Q4 2016
Revenue by Customer Industry,
EUR million
Other Applications
Construction & Infrastructure
Industrial Applications
Transportation Industry
Telecommuni-
cation
MachineIndustry
PaperIndustry
ElectricalIndustry
Cleaning & Maintenance
Sports & Leisure
Other Industries
BCI EnergyIndustry
Construction &
InfrastructureOther
Applications
Industrial Applications
47.4 40.3
18.4 17.5
14.4 15.3
Q1-Q4 2015 Q1-Q4 2016
Other Applications
Construction & Infrastructure
Industrial Applications
Exel Composites Plc 9
Lower demand from some key
customers in Europe and in Asia
2016 (EUR) million 2015 (EUR) million
63.9
59.6
Europe
13.7
11.3
APAC
2.6
2.2
Rest of the world
Exel Composites Plc 10
Adjusted operating profit in Q3 and
Q4 2016 at the same level or higher
than previous year
0%
10%
20%
0
1
2
3
4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016
Adjusted operating profit and adjusted operating profit margin
Adjusted operating profit, MEUR
Adjusted operating profit margin, %
Operating profit target, %
Exel Composites Plc 11
0
20
40
60
0%
10%
20%
30%
2013 2014 2015 2016
Capital employed, MEUR ROCE, %
Return on capital employed
Exel Composites Plc 12
0.17
0.26
0.48
0.24
0.02
2012 2013 2014 2015 2016
Earnings per share
1) The downsizing of the underperforming Australian unit resulted in one-off
expenses of EUR 1.5 million and costs related to the acquisition of
the Chinese composites production company of EUR 0.5 million were
recorded in the group accounts.
1)
Exel Composites Plc 13
Share quotations 2016
Highest: EUR 6.85
Lowest: EUR 4.71
Average: EUR 5.05
On 31.12. 2016: EUR 5.02
Market capitalization on
31.12.2016:
EUR 59.7 (77.7) million
Source: Kauppalehti
Share price development 2016
Price/earnings 2012-2016:
31.12.2016: 301.35
31.12.2015: 27.32
31.12.2014: 17.50
31.12.2013: 22.21
31.12.2012: 34.57
Exel Composites Plc 14
Number of
shares
Percentage of
share capital
Skandinaviska Enskilda Banken AB (nominee registered) 2,330,295 19.6
Nordea Bank Finland Plc (nominee registered) 1,727,641 14.5
Nordea Fennia Fund 605,508 5.1
OP-Finland Small Firms Fund 498,259 4.2
Försäkringsaktiebolaget Pensions-Alandia 476,559 4.0
Danske Invest Finnish Small Cap Fund 374,219 3.1
Fondita Nordic Micro Cap 350,000 2.9
Ilmarinen Mutual Pension Insurance Company 342,733 2.9
OP-Delta Fund 300,000 2.5
Matti Suutarinen 266,662 2.2
Exel Composites had a total of 3,034 (2,987) shareholders on 31 December 2016.
Major shareholders
on 31 December 2016
Exel Composites Plc 15
• Focused sales efforts on
growing customer
industries
• Optimization of production
and efficient capacity
utilization
• Acquisition of Chinese
composites production
company; closing expected
in Q1 2017
• Attractive long-term market
fundamentals prevail
Exel Composites continues well
positioned for profitable growth
Protect and grow our stronghold
customersProviding
competitive edge and best
customer service
Exel Composites Plc 16
Next level growth is based on four initiatives
Accelerate
growth in China
Local sales network
Value offering for
mid-segment
R&D and
manufacturing
capacity
Growth in new
technologies
Further processing
and vertical
integration
New composite
technologies, other
than pultrusion
Penetrate new
applications
Solutions for larger
growth applications
Package key
applications to
‘systems’
Create true
global footprint
Increase sales
coverage
Grow supply and
service to new
market areas,
including Americas
Exel Composites Plc 17
• Exel Composites estimates that revenue with current company structure (i.e. without the Chinese company acquisition) will increase from previous year level and adjusted operating profit will be higher than previous year level. In 2016, Exel Composites’ revenue was EUR 73.1 million and adjusted operating profit was EUR 2.6 million.
Outlook for full year 2017
Exel Composites Plc 18
Your IR contacts
Riku Kytömäki
President and CEO
+358 50 511 8288
Mikko Kettunen
CFO
+358 50 3477 462
Noora Koikkalainen
IR Manager
+358 50 562 6552
www.exelcomposites.com
Exel Composites Plc
www.exelcomposites.com