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Exel Composites Oyj — Earnings Release 2020
Feb 18, 2021
3315_rns_2021-02-18_ac225c7a-a59f-42f9-abb0-237255c0fae2.html
Earnings Release
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Exel Composites' Financial Statements Release 2020: Strong order intake in Q4 2020, 2021 starts with high order backlog
Exel Composites' Financial Statements Release 2020: Strong order intake in Q4 2020, 2021 starts with high order backlog
EXEL COMPOSITES PLC FINANCIAL STATEMENTS RELEASE 18 FEBRUARY 2021 at
09:00 EET
Q4 2020 in brief
· Order intake increased by 5.7% to EUR 33.4 million (Q4 2019: 31.7).
· Revenue increased by 3.5% to EUR 27.5 million (26.6).
· Adjusted operating profit increased to EUR 2.7 million (1.3), which is 9.9%
of revenue (4.9).
· Operating profit increased to EUR 2.7 million (1.1), which is 9.9% of
revenue (4.1).
· Earnings per share amounted to EUR 0.09 (0.03).
Q1-Q4 2020 in brief
· Order intake increased by 4.2% to EUR 115.4 million (Q1-Q4 2019: 110.7).
· Revenue increased by 4.6% to EUR 108.6 million (103.8).
· Adjusted operating profit increased to EUR 9.7 million (7.2), which is 8.9%
of revenue (6.9).
· Operating profit increased to EUR 9.4 million (5.1), which is 8.7% of
revenue (4.9).
· Earnings per share amounted to 0.45 (0.20).
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.20 (0.18) per share be
paid for the financial year 2020.
Guidance for the full year 2021
Exel Composites expects revenue and adjusted operating profit in 2021 to
increase compared to 2020.
President and CEO, Riku Kytömäki
The year 2020 ended strongly for Exel Composites. The adjusted operating profit
as well as revenue increased compared to 2019. In addition, our order intake
improved, resulting in a strong order backlog driven by an improved underlying
demand at the end of 2020. Operating cash flow in 2020 increased compared to the
previous year.
Overall, Exel has so far mitigated the impacts of the Covid-19 pandemic well.
The health and safety of our employees, customers and business partners is a
priority for Exel Composites. For the most part, operations at our factories
were close to normal throughout the year within the limits of the implemented
safety measures. Many of our manufacturing units are located far from densely
populated areas, which has reduced the impact of the pandemic on the company.
Due to preventive and mitigating actions, we have not suffered from significant
shortfalls in staffing or materials due to the pandemic. I am particularly happy
to see that our strategy based on diversified customer industries and regions
has supported us in these difficult times and reduced the impact of the sudden
drop of demand that happened with some of our clients.
In the fourth quarter of 2020, revenue increased driven by Buildings and
Infrastructure as well as Defense customer industries. In the full year 2020,
the volume increase in Defense and Wind Power made a significant positive
contribution to Group revenue. I am very satisfied with these results as they
reflect the successful execution of our strategy. Wind Power is one of our
strategic focus areas and continues to grow as our largest customer industry.
Other strategic focus areas grew too: Camouflage net support poles in the
Defense customer industry as well as conductor core applications in the
Infrastructure industry are good examples of how extensive R&D over several
years yields results. The conductor core application is the outcome of
determined long-term product development and a technological break-through that
can increase power transmission capacity. The camouflage net support poles, on
the other hand, are an example of how we have been able to leverage our global
footprint and cross-selling within the Group. These customer industries have
remained more or less resilient during the Covid-19 pandemic. Transportation, on
the other hand, has clearly been negatively impacted by the pandemic and revenue
in the customer industry declined in the fourth quarter as well as in 2020.
Geographically, revenue increased in the regions Asia-Pacific and Europe in the
fourth quarter. In 2020, Asia-Pacific showed strong growth, while revenue in
Europe increased slightly. In the region North America, revenue declined across
nearly all customer industries in the fourth quarter mainly due to the Covid-19
pandemic.
Despite the impacts of the pandemic on many fronts, adjusted operating profit
increased by 36% in 2020 compared to 2019. In the fourth quarter, adjusted
operating profit more than doubled compared to the same period in the previous
year. The strong improvement reflects the impact from the cost savings program
completed in 2019, an overall favorable sales mix and operational efficiency
improvements implemented during the year across the Group. We were also able to
leverage our position as a growing global buyer in a materials market weakened
by the pandemic.
2020 will remain in history as an exceptional year in many ways. The pandemic
continues to cast a shadow over the global business environment also in 2021
although vaccination programs are expected to relieve the situation. Despite the
pandemic, we start 2021 in a good position supported by a high order backlog. I
warmly thank our employees for a job well done, and our customers and other
stakeholders for outstanding cooperation. Stay healthy and safe, and let’s make
2021 an even better year!
Consolidated key figures
Q4 Q4 Change Q1-Q4 Q1-Q4 Change
EUR thousand 2020 2019 % 2020 2019 %
Revenue 27,508 26,585 3.5 108,595 103,784 4.6
Operating profit 2,732 1,085 151.9 9,417 5,087 85.1
% of revenue 9.9 4.1 8.7 4.9
Adjusted operating profit 1) 2,732 1,300 110.1 9,708 7,160 35.6
% of revenue 9.9 4.9 8.9 6.9
Profit before tax 1,507 277 444.2 7,124 3,885 83.4
% of revenue 5.5 1.0 6.6 3.7
Profit for the period 1,098 364 201.8 5,368 2,397 124.0
% of revenue 4.0 1.4 4.9 2.3
Shareholders' equity 28,880 26,302 9.8 28,880 26,302 9.8
Interest-bearing liabilities 43,140 37,163 16.1 43,140 37,163 16.1
Cash and cash equivalents 11,974 6,930 72.8 11,974 6,930 72.8
Net interest-bearing 31,167 30,234 3.1 31,167 30,234 3.1
liabilities
Capital employed 72,021 63,466 13.5 72,021 63,466 13.5
Return on equity, % 15.5 5.6 179.3 19.5 9.2 111.4
Return on capital employed, % 15.4 6.9 125.1 14.1 8.6 64.5
Equity ratio, % 30.2 30.9 -2.4 30.2 30.9 -2.4
Net gearing, % 107.9 114.9 -6.1 107.9 114.9 -6.1
Net cash flow from operating 4,674 3,455 35.3 14,006 9,030 55.1
activities
Net cash flow from investing -3,277 -1,839 78.2 -12,849 -6,087 111.1
activities
Capital expenditure 3,321 1,417 134.3 13,220 6,262 111.1
% of revenue 12.1 5.3 12.2 6.0
Research and development costs 866 699 23.9 2,884 2,851 1.2
% of revenue 3.1 2.6 2.7 2.7
Order intake 33,445 31,650 5.7 115,373 110,693 4.2
Order backlog 36,544 30,391 20.2 36,544 30,391 20.2
Earnings per share, diluted 0.09 0.03 201.6 0.45 0.20 123.8
and undiluted, EUR
Equity per share, EUR 2.44 2.23 9.71 2.44 2.23 9.73
Average share price, EUR 5.55 4.54 22.2 5.55 4.54 22.2
Average number of shares, 11,830 11,820 0.1 11,828 11,820 0.1
diluted and undiluted, 1,000
shares
Employees, average 674 656 2.7 665 659 0.9
Employees, end of period 674 648 4.0 674 648 4.0
1) Excluding material items affecting comparability, such as restructuring
costs, impairment losses and reversals, and costs related to planned or realized
business acquisitions or disposals.
Financial reporting and Annual General Meeting 2021
Exel Composites publishes the following financial reports in 2021:
· Financial Statements Release 2020: 18 February 2021
· Business Review January-March: 30 April 2021
· Half-year Financial Report January-June: 20 July 2021
· Business Review January-September: 4 November 2021
The Annual Financial Report, Corporate Governance Statement and Remuneration
Report for 2020 will be available on 2 March 2021 at the company’s website
www.exelcomposites.com.The Annual General Meeting will be held on 23 March 2021
at 09:00 EET in Exel Composites’ premises at Mäkituvantie 5, 01510 Vantaa,
Finland. Shareholders of the company may participate in the meeting and exercise
their shareholders’ rights only through a proxy presentative designated by the
company as well as by posing counterproposals and questions in advance. Proxy
representatives must see to the voting in advance on behalf of shareholders.
After the Annual General Meeting, on 23 March 2020 at 10:30 EET, Exel Composites
will hold an online event for shareholders, where the resolutions made at the
General Meeting and the review by the President and CEO will be presented.
Instructions to register to this event are presented in the notice to Exel
Composites’ Annual General Meeting under Section C item 5 and at the company’s
website www.exelcomposites.com.
Financial results briefing
Exel Composites will hold a financial results briefing regarding the Financial
Statements Release January-December 2020 on Thursday 18 February 2021 at 12:30
EET. Participation requires registration in advance.
Vantaa, 18 February 2021
Exel Composites Plc
Board of Directors
For further information, please contact:
Riku Kytömäki, President and CEO
tel. +358 50 511 8288
[email protected]
Mikko Kettunen, CFO
tel. +358 50 347 7462
[email protected]
Distribution
Nasdaq Helsinki Ltd
Main news media
www.exelcomposites.com
Exel Composites in brief
At Exel Composites, we use over 60 years’ experience to solve challenges and
help customers save resources. Our forward-thinking composite solutions made
with continuous manufacturing technologies serve customers in a wide range of
industries around the world. You can find our products used in applications from
wind power and transportation to building and infrastructure.
Our collaborative approach and global footprint set us apart from our
competition. We use our expertise to help customers reduce weight, improve
performance and energy efficiency and decrease total lifetime costs. We want to
be the first choice for sustainable composite solutions globally.
Headquartered in Finland, Exel Composites employs approximately 650 forward
-thinking professionals around the world and is listed on Nasdaq Helsinki. To
find out more about our offering and company please visit
www.exelcomposites.com.
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