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Exel Composites Plc
“PROFITABILITY IMPACTED BY LOW VOLUMES IN Q1 2016; UPDATED OUTLOOK FOR FULL YEAR 2016”
January – March 2016
Business Review
11 May 2016
Riku Kytömäki
President and CEO
Exel Composites Plc 2
• Business environment– Market environment
challenging
– Key customers have lost market shares; lower order volumes
– Long-term market fundamentals prevail
• Operations– Cost take out measures,
especially in Australia and Finland
– Focus on improving operational efficiency and capacity utilization
• Financial performance– Cost structure not in line with
lower than expected business volume; operating profit low
Q1 2016 in brief
Exel Composites Plc 3
0.6 0.7-0.9
2.4 1.7
3.80.5
3.8
0.5
Q1-Q42014
Q1-Q42015
Q12016
Net cash flow, MEUR
21.8 22.8 18.0
21.4 21.4
20.8 18.7
18.4 20.5
Q1-Q42014
Q1-Q42015
Q12016
Order intake, MEUR
1.9 2.0 0.1
3.11.3
1.9
0.5
2.1
0.6
Q1-Q42014
Q1-Q42015
Q12016
Operating profit, MEUR
17.8 21.5 17.9
21.4 21.4
19.0 18.0
21.1 19.3
Q1-Q42014
Q1-Q42015
Q12016
Revenue, MEUR
Q1 2016 highlights
Exel Composites Plc 4
Thousands of EUR
Q1
2016
Q1
2015
Change
%
FY
2015
Order intake 18,032 22,762 -20.8 83,374
Order backlog 1) 15,382 13,816 11.3 15,348
Revenue 2) 17,919 21,495 -16.6 80,196
Operating profit 146 1,991 -92.7 4,414
% of revenue 0.8 9.3 5.5
Profit for the period -2 1,557 -100.1 2,844
Net cash flow from operating activities -862 688 -255.3 3,385
Return on capital employed, % 1.5 21.8 12.0
Net gearing, % 15.8 -8.3 2.0
Earnings per share, EUR 0.00 0.13 0.24
Equity per share, EUR 2.32 2.54 -8.7 2.58
Key figures Q1 2016
1) As per 31 March 2016.2) Revenue by customer industries: Industrial applications 9.6 (13.8) MEUR, Construction & infrastructure 4.1 (4.6) MEUR, Other
applications 4.2 (3.1) MEUR.
Exel Composites Plc 5
Challenging market environment for key
customers impacted business volumes
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
2013 2014 2015 2016
Revenue and order backlog
Revenue, MEUR Order backlog, MEUR, end of period
Exel Composites Plc 6
The majority of revenue in Q1 2016
came from Industrial applications
13.8 9.6
4.6
4.1
3.1
4.2
Q1 2015 Q1 2016
Revenue by Customer Industry,
MEUR
Other applications
Construction & infrastructure
Industrial applications
Transportation
Industry
Tele-communication
MachineIndustry
PaperIndustry
ElectricalIndustry
Cleaning & Maintenance
Sports & Leisure
Other Industries
Building,
Construction &
Infrastructure
EnergyIndustry
Construction &
infrastructureOther
applications
Industrial applications
Exel Composites Plc 7
Operating profit impacted by
declined revenue
0%
10%
20%
0
2
4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2013 2014 2015 2016
Operating profit and operating profit margin
Operating profit, MEUR Operating profit margin, %
Operating profit target, %
Exel Composites Plc 8
0
20
40
60
0%
10%
20%
30%
2013 2014 2015 Q1 2016
Capital employed, MEUR ROCE, %
ROCE decreased due to lower
operating profit
Exel Composites Plc 9
• Measures to further control
costs, particularly in
Australia and Finland
• Increasing focus on
improving operational
efficiency and optimizing
global manufacturing
footprint
• Implementation of long-
term growth strategy
continues
• Attractive long-term market
fundamentals prevail
Well positioned for profitable
growth
Exel Composites Plc 10
• The Company continues to
implement its new strategy
with focus on operational
efficiency and optimizing the
global manufacturing
footprint. The Company
estimates that operating profit
excluding any non-recurring
items will decrease
(previously: increase) in 2016
compared to 2015.
Outlook for full year 2016
(changes in brackets)
Exel Composites Plc 11
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
Exel Composites Plc
www.exelcomposites.com