Financial Statements 2010 Exel Composites Plc Vesa Korpimies, President and CEO

Click here to load reader

  • date post

    31-Dec-2015
  • Category

    Documents

  • view

    214
  • download

    0

Embed Size (px)

Transcript of Financial Statements 2010 Exel Composites Plc Vesa Korpimies, President and CEO

  • Financial Statements 2010 Exel Composites Plc Vesa Korpimies, President and CEO

  • OutlineHighlights 2010 and Q4 2010Financial statements 2010Investment caseMarket outlook

    *

  • Highlights 2010 improvements despite Q1Net sales increased with 4.1 per cent to MEUR 72.9 (70.0)Operating profit increased to MEUR 9.4 (8.0)*Operating profit margin improved to 12.9 (11.4) per cent**Net gearing improved to -4.3 (23.7) per centFully diluted EPS increased to EUR 0.57 (0.56)Dividend proposal EUR 0.50 (0.25), incl. extra dividend EUR 0.25 (0.0)

    *Operating profit from continuing operations MEUR +9.4 including MEUR +1.4 non-recurring items (MEUR +8.0 including net reversal of the restructuring provisions and other non-recurring items of MEUR +1.2)**Operating profit without non-recurring items was 11.0 (9.7) per cent of net sales*

  • Highlights Q4 strong year endGood demand continued in Q4 Net sales increased with 19.0 per cent to MEUR 19.3 (16.2)Operating profit increased to MEUR 3.1 (2.4)*

    *Operating profit from continuing operations MEUR +3.1 including MEUR +0.9 non-recurring items (MEUR +2.4 including net reversal of the restructuring provisions of EUR +0.7 million)*

  • Highlights reinforced platform for growthWe continued reinforcing our platform for growth in 2010Taking action to strengthening our sales and technical sales teamStrengthen our balance sheet, net cash position at year endSuccessful implementation of Group wide ERP systemMaintaining our focus on cost efficiency and improving productivityWe are reasonably satisfied with the overall performance 2010. However, improvement areas exist. We have taken measures in our Chinese and British units to improve efficiency, we expect a positive outcome by the end of 2011We are well-positioned to continue capitalizing on growth opportunities

    *

  • OutlineHighlights 2010 and Q4 2010Financial statements 2010Investment caseOutlook

    *

  • Overview 2010 improvements despite Q1*Operating profit from continuing operations MEUR +9.4 including MEUR +1.4 non-recurring items (MEUR +8.0 including net reversal of the restructuring provisions and other non-recurring items of MEUR +1.2)**Operating profit without non-recurring items was 11.0 (9.7) per cent of net sales*

    MEUR20102009ChangeNet sales72.970.0+4 %Operating profit*9.48.0+18 %Operating profit (%)**12.911.4Net operative cash flow+12.0+14.2Return on capital employed (%)21.820.9Net gearing (%)-4.323.7EPS0.570.56+2 %

  • Q4 2010 in brief strong development*Operating profit from continuing operations MEUR +3.1 including MEUR +0.9 non-recurring items (MEUR +2.4 including net reversal of the restructuring provisions of EUR +0.7 million)**Operating profit without non-recurring items was 11.7 (10.5) per cent of net sales*

    MEURQ4 2010Q4 2009ChangeNet sales19.316.2+19 %Operating profit*3.12.4+32 %Operating profit (%)**16.114.5Net operative cash flow5.15.6Return on capital employed (%)27.529.8Net gearing (%)-4.323.7EPS0.190.18+6 %

  • Composite profile market very competitiveOvercapacity in the marketStrong demand in telecom and paper industry, electrical and machine industry and cleaning and maintenance marketsBuilding and construction continued to suffer from poor demandNet Sales (MEUR)Change+4 %+19 %+17 %-1 %-15 %CommentsNet sales picked up in Q3 and Q4*

    Diagram1

    18.5319.315.9416.269.97

    15.719.218.719.372.9

    Q1

    Q2

    Q3

    Q4

    Full year

    Blad1

    20092010

    Q118.5315.7-15%

    Q219.319.2-1%

    Q315.9418.717%

    Q416.219.319%

    Full year69.9772.94%

    Om du vill ndra storleken fr diagrammets dataomrde drar du i det nedre hgra hrnet av omrdet.

  • Profitability improved in all quarters except Q1Operating profit including one-off itemsMEUR%**Operating profit from continuing operations MEUR +3.1 including MEUR +0.9 non-recurring items (MEUR +2.4 including net reversal of the restructuring provisions of EUR +0.7 million)**Operating profit without non-recurring items was 11.7 (10.5) per cent of net sales*

    Diagram1

    2.0010.107987048

    2.390.1239305159

    1.2390.0777192322

    2.360.145248646

    0.9830.0627273307

    2.6530.1383716685

    2.6790.1433233469

    3.1150.1610818078

    EBIT

    EBIT (%)

    Blad1

    Q1/09Q2/09Q3/09Q4/09Q1/10Q2/10Q3/10Q4/10

    EBIT2.0012.391.2392.360.9832.6532.6793.115

    EBIT (%)10.8%12.4%7.8%14.5%6.3%13.8%14.3%16.1%

    18.5319.28515.94216.24815.67119.17318.69219.338

  • We have had profitability issues in our British and Chinese units measures have been takenWe are reasonably satisfied with the overall performance of Exel Composites 2010 However, we experienced decreasing profitability in our British and Chinese units during the yearWe have taken measures to improve efficiency in UK and China

    *

  • Positive cash flow throughout the yearOperative cash flowMEUR*

    Diagram1

    -0.16

    0.5

    4.5

    6.2

    3

    3.2

    2.4

    5.6

    0.8

    3.3

    2.8

    5.1

    Cash flow

    Blad1

    Q1/08Q2/08Q3/08Q4/08Q1/09Q2/09Q3/09Q4/09Q1/10Q2/10Q3/10Q4/10

    Cash flow-0.160.54.56.233.22.45.60.83.32.85.1

    -0.160.54.56.233.22.45.60.83.32.85.1

    QuarterCash flow

    Q1/08-0.16

    Q2/080.4

    Q3/084.5

    Q4/08-0.2

    Q1/093

    Q2/093.2

    Q3/092.4

    Q4/095.6

    Q1/08Q2/08Q3/08Q4/08

  • We continued to strengthen our financial positionNet gearing and equity ratio%%*

    Diagram1

    1.2330.309

    1.7840.245

    1.4430.268

    1.2390.282

    0.9140.32

    0.6350.359

    0.5180.388

    0.2370.446

    0.2280.429

    0.2040.472

    0.1040.5

    -0.0420.58

    Net gearing

    Equity ratio

    Blad1

    Q1/08Q2/08Q3/08Q4/08Q1/09Q2/09Q3/09Q4/09Q1/10Q2/10Q3/10Q4/10

    Net gearing123.30%178.40%144.30%123.90%91.40%63.50%51.80%23.70%22.80%20.40%10.40%-4.20%

    Equity ratio30.90%24.50%26.80%28.20%32.00%35.90%38.80%44.60%42.90%47.20%50.00%58.00%

    18.5319.28515.94216.24815.67119.17318.69219.338

    QuarterNet gearingEquity ratio

    Q1/08123.30%30.90%

    Q2/08178.40%24.50%

    Q3/08144.30%26.80%

    Q4/08123.90%28.20%

    Q1/0991.40%32.00%

    Q2/0963.50%35.90%

    Q3/0951.80%38.80%

    Q4/0923.70%44.60%

    Q1/1022.80%42.90%

    Q2/1020.40%47.20%

    Q3/1010.40%50.00%

    Q4/10-4.20%58.00%

  • Fully diluted EPS improved to EUR 0.57 (0.56)Earnings per share for Exel Group improved to EUR 0.57 (0.56)EPS for continuing operations EPS 0.57 (0.50)EPS for discontinued operations EUR 0.00 (0.06)

    *

  • Weakening demand: General economic development, government regulations and a possible new financial crisis in the Euro area could have a negative effect on demandRaw material price increases: Raw material prices and other cost increases may pressure profitability. The ECs anti-dumping tariffs imposed on Chinese glass fiber could have also have a negative effectInternal efficiency: We have taken measures in the Chinese and British units to improve efficiency, in case we are unsuccessful, this may have an effect on the result of the companyFinancing: The availability and cost of financing may continue to have an effect on the demand and increase the risk of credit lossSeveral risk elements exist*

  • We have taken measures to reduce the impact of the anti-dumping tariff on Chinese glass fiberThe European Commission imposed an anti-dumping tariff of 43.6 per cent on imported Chinese glass fiber in September 2010Exel Composites actions to reduce the impact of the tariffIncreasing product pricesEmploying alternative sourcing opportunitiesImproving efficiency in Exels Nanjing unit in China*

  • We have also reinforced our organizationNumber of Exel Group employees 408 (419) on 31 December 2010Restructuring actions in the British and Chinese units

    We have reinforced our organizationNew sales & technical sales resourcesNew MD Australia

    *

  • OutlineHighlights 2010 and Q4 2010Financial statements 2010Investment caseOutlook

    *

  • Exel Composites 50 years of innovationEstablished 1960 from electronic detonator caps to global #1 composite profile solution providerEarly innovative milestones includeXC ski poles started in 1973, breakthrough in Innsbruck 1976First advanced Carbon Fibre profile for textile machines 1978 Focus on continuous production methods, pultrusion and pullwinding, late 1980sIPO 1998 at the Helsinki Stock exchange followed by an era of acquisitions in 2001-2006New Exel Composites emerged in 2009, today we are the leading and most international company in the fragmented pultrusion industry*

  • We are the global #1 composite profile providerSource: Lucintel; Growth Opportunities in the Pultrusion Market 2009-2014: Global Market Outlook *

  • Reinforcements

    Cross-winding units

    Resin Injection Mould

    Pulling Device

    Cutting Device

    Our core technology: continuous processesPrinciple drawing of Exel Composites pullwinding process*

  • Exel Composites solution platformWe have a unique platform to drive growth in a multi-application business+

    SolutionandProduct

    Customerapplicationspecialists

    People andcapabilitiesCustomerapplication know-howDevelopment co-operation creating the optimized solution

    Exel experts in composite design

    People and capabilities++*

  • Exel Composites has a history of profitable growthMEUREBIT %*Until 2007 figures represent the Industry division and thereafter continuing operations

    Diagram1

    10.698770380.1119981998

    13.7540.180602006719991999

    20.0980.181411085720002000

    21.9260.149411657420012001

    25.1120.108354571520022002

    28.8740.1