CUSTOMER DEMAND REMAINED WEAK, HOWEVER, OPERATING PROFIT IMPROVED IN Q3 2016 January – September 2016 Business Review 26 October 2016 Exel Composites Plc
Q3 2016 in brief • Business environment – Market environment remains challenging – Generally lower demand in key markets, especially telecommunications – Declining share of orders from high volume customers; actions to counteract impact on sales mix • Operations – Cost reduction measures bringing results; implementation continues – Activities to optimize production and expand customer base • Financial performance – Cost reduction measures improved Q3 2016 profitability Exel Composites Plc 2
Q3 2016 highlights Revenue, EUR million Order intake, EUR million 18.4 20.5 19.3 21.1 20.8 18.7 18.0 19.0 18.2 16.4 21.4 21.4 21.4 21.4 19.7 20.2 21.5 21.8 22.8 17.8 17.9 18.0 Q1-Q4 Q1-Q4 Q1-Q3 Q1-Q4 Q1-Q4 Q1-Q3 2014 2015 2016 2014 2015 2016 Operating profit, EUR million Net cash flow, EUR million 2.1 3.8 1.9 0.6 3.8 3.1 0.5 0.5 1.3 0.5 0.6 2.4 1.7 2.5 1.9 2.0 1.1 0.3 0.1 0.6 0.7 -0.9 Q1-Q4 Q1-Q4 Q1-Q3 Q1-Q4 Q1-Q4 Q1-Q3 2014 2015 2016 2014 2015 2016 Exel Composites Plc 3
Key figures Q1-Q3 2016 1.1.-30.9. 1.1.-30.9. Change FY EUR thousand 2016 2015 % 2015 Order intake 56,532 62,908 -10.1 83,374 Order backlog 1) 17,428 14,259 22.2 15,348 Revenue 54,070 60,853 -11.1 80,196 Operating profit 1,858 3,805 -51.2 4,414 % of revenue 3.4 6.3 5.5 Adjusted operating profit 2) 1,912 4,097 -53.3 4,770 % of revenue 3.5 6.7 5.9 Profit for the period 1,263 2,435 -48.1 2,844 Net cash flow 1,972 2,908 -32.2 3,385 6.3 13.8 12.0 Return on capital employed, % Net gearing, % 13.2 -1.2 2.0 0.11 0.20 0.24 Earnings per share, EUR 2.36 2.51 -6.0 2.58 Equity per share, EUR 1) As per 30 September 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 4
Key figures Q3 2016 1.7.-30.9. 1.7.-30.9. Change FY EUR thousand 2016 2015 % 2015 Order intake 18,181 18,723 -2.9 83,374 Order backlog 1) 17,428 14,259 22.2 15,348 Revenue 2) 16,431 18,006 -8.7 80,196 Operating profit 565 466 21.2 4,414 % of revenue 3.4 2.6 5.5 Adjusted operating profit 3) 596 517 15.3 4,770 % of revenue 3.6 2.9 5.9 Profit for the period 384 78 392.3 2,844 Net cash flow 2,492 549 353.9 3,385 5.6 4.8 12.0 Return on capital employed, % Net gearing, % 13.2 -1.2 2.0 0.03 0.01 0.24 Earnings per share, EUR 2.36 2.51 -6.0 2.58 Equity per share, EUR 1) As per 30 September 2016. 2) Revenue by customer industries Q3 2016 (Q3 2015): Industrial applications EUR 8.7 (9.8) million; Construction & infrastructure EUR 4.2 (4.7) million; Other applications EUR 3.5 (3.6) million. 3) 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 published on 21 July 2016. Exel Composites Plc 5
Lower demand in key markets Revenue and order backlog 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 Revenue, EUR million Order backlog, EUR million, end of period Exel Composites Plc 6
In Q3 2016 lower demand especially in telecommunications Revenue by Industrial Applications Customer Industry, EUR million 3.6 3.5 4.7 4.2 Machine Telecommuni- Paper Electrical Transportation Industry Industry Industry Industry cation 9.8 8.7 Construction & Other Infrastructure Applications Q3 2015 Q3 2016 Other Applications Construction & Infrastructure Industrial Applications Energy BCI Cleaning & Sports & Other Industry Maintenance Leisure Industries Exel Composites Plc 7
Cost reduction measures have improved profitability in Q3 2016 Operating profit and operating profit margin 4 20% 2 10% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 Operating profit, MEUR Operating profit margin, % Operating profit target, % Exel Composites Plc 8
ROCE 30% 60 20% 40 10% 20 0% 0 2013 2014 2015 Q1-Q3 2016 Capital employed, MEUR ROCE, % Exel Composites Plc 9
Exel Composites continues well positioned for profitable growth • Measures to further reduce costs continue Protect and grow • Optimization of production our stronghold customers and operational efficiency Providing competitive edge improvements and best customer service • Focused customer segment initiatives to expand customer base • Implementation of long- term growth strategy continues • Attractive long-term market fundamentals prevail Exel Composites Plc 10
Strategy Next level growth is based on four initiatives Accelerate Penetrate new Create true Growth in new growth in China global footprint technologies applications Local sales network Solutions for larger Increase sales Further processing Value offering for coverage and vertical growth applications Package key Grow supply and mid-segment integration R&D and New composite applications to service to new ‘systems’ manufacturing market areas, technologies, other capacity including Americas than pultrusion Exel Composites Plc 11
Outlook for full year 2016 • The Company continues to implement its new strategy with focus on operational efficiency and optimizing the global manufacturing footprint. The Company estimates that adjusted operating profit will decrease in 2016 compared to 2015. Exel Composites Plc 12
Your IR contacts Riku Kytömäki Mikko Kettunen Noora Koikkalainen President and CEO CFO IR Manager +358 50 511 8288 +358 50 3477 462 +358 50 562 6552 riku.kytomaki@exelcomposites.com mikko.kettunen@exelcomposites.com noora.koikkalainen@exelcomposites.com www.exelcomposites.com Exel Composites Plc 13
www.exelcomposites.com Exel Composites Plc
Recommend
More recommend
