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Exel Composites Oyj Interim / Quarterly Report 2021
3315_rns_2021-07-20_fb79ce20-f1d8-481e-9699-9077bf929009.pdf
Interim / Quarterly Report
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exel
COMPOSITES
Half Year Financial Report
January - June
2021
FOR FORWARD THINKERS
CONTINUED STRONG ORDER INTAKE AND REVENUE
Q2 2021 in brief
- Order intake increased by 89.8% to EUR 43.5 million (Q2 2020: 22.9).
- Revenue increased by 23.1% to EUR 33.5 million (27.2).
- Operating profit decreased to EUR 2.4 million (2.8), which is 7.0% of revenue (10.3).
- Adjusted operating profit decreased to EUR 2.5 million (2.9), which is 7.3% of revenue (10.6).
- Earnings per share amounted to EUR 0.13 (0.21).
Q1-Q2 2021 in brief
- Order intake increased by 48.9% to EUR 85.5 million (Q1-Q2 2020: 57.4).
- Revenue increased by 17.1% to EUR 64.5 million (55.0).
- Operating profit increased to EUR 4.8 million (4.7), which is 7.4% of revenue (8.5).
- Adjusted operating profit decreased to EUR 4.9 million (5.0), which is 7.6% of revenue (9.0).
- Earnings per share amounted to 0.29 (0.27).
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
In the second quarter of 2021, order intake continued strong as market demand in various customer industries increased. Along with another strong quarterly order intake, revenue increased compared to the previous year. Adjusted operating profit was, however, behind last year.
Revenue increased during the second quarter in almost all customer industries. The conductor core application was driving the growth in Buildings and Infrastructure. The key source of growth in Defense customer industry was the camouflage net support pole application. In Equipment and other industries, we saw a Covid-19 related rebound in the business volumes of a large number of customers. In Wind power, the revenue in the second quarter was slightly lower than last year. Our order backlog, however, indicates that the growth of Wind Power will continue during the second half of the year.
From a geographical perspective, the revenue increase in North America and Europe reflects the shipping locations of the above-mentioned growing applications rather than the development of demand in the individual geographical markets.
Despite the revenue increase, adjusted operating profit declined in the second quarter compared to the previous year. The operating profit was negatively impacted by low profit margins during the ramp-up of certain high-volume products and increased raw material costs. We expect the profitability to improve in the second half of the year both in terms of pricing as well as production efficiency once the production is fully ramped up. Last year, the second quarter was impacted by approximately EUR 0.3 million of Covid-19 pandemic related grants, which did not repeat this year.
In June 2021, the Board of Directors reconfirmed Exel's strategy in its annual strategy review. The main strategic focus areas as well as the company's long-term financial targets and dividend policy remained unchanged. We have continued to make good progress in all focus areas with focus on strategic growth initiatives and operational efficiency improvements particularly in selected manufacturing units in the Group.
89.8%
Order intake increased in Q2 2021 to EUR 43.5 million
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
One of the main targets in the strategy work has been to further integrate sustainability in all Exel's operations and business. Sustainability is a key element in our vision and purpose, which were updated at the end of last year. Our purpose is to solve challenges and help customers save resources with composites, and our vision is to be the first choice for sustainable composite solutions globally.
Customer activity and demand in the composites market has clearly increased. Our performance in the first half of 2021 and the record-high order backlog provides a good foundation for increasing revenue and improving profits during the rest of the year.
We expect the profitability to improve in the second half of the year.
Order intake EUR million
Revenue EUR million
Adjusted operating profit EUR million
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
Consolidated key figures
| EUR thousand | Q2 2021 | Q2 2020 | Change % | Q1-Q2 2021 | Q1-Q2 2020 | Change % | Q1-Q4 2020 |
|---|---|---|---|---|---|---|---|
| Revenue | 33,524 | 27,239 | 23.1 | 64,478 | 55,044 | 17.1 | 108,595 |
| Operating profit | 2,363 | 2,792 | -15.4 | 4,786 | 4,662 | 2.7 | 9,417 |
| % of revenue | 7.0 | 10.3 | 7.4 | 8.5 | 8.7 | ||
| Adjusted operating profit 1) | 2,457 | 2,882 | -14.8 | 4,917 | 4,955 | -0.8 | 9,708 |
| % of revenue | 7.3 | 10.6 | 7.6 | 9.0 | 8.9 | ||
| Profit before tax 2) | 1,897 | 2,953 | -35.7 | 4,830 | 4,268 | 13.2 | 7,124 |
| % of revenue | 5.7 | 10.8 | 7.5 | 7.8 | 6.6 | ||
| Profit for the period | 1,485 | 2,529 | -41.3 | 3,447 | 3,198 | 7.8 | 5,368 |
| % of revenue | 4.4 | 9.3 | 5.3 | 5.8 | 4.9 | ||
| Shareholders' equity | 31,266 | 26,770 | 16.8 | 31,266 | 26,770 | 16.8 | 28,880 |
| Interest-bearing liabilities | 47,483 | 42,196 | 12.5 | 47,483 | 42,196 | 12.5 | 43,140 |
| Cash and cash equivalents | 7,591 | 12,758 | -40.5 | 7,591 | 12,758 | -40.5 | 11,974 |
| Net interest-bearing liabilities | 39,892 | 29,438 | 35.5 | 39,892 | 29,438 | 35.5 | 31,167 |
| Capital employed | 78,749 | 68,966 | 14.2 | 78,749 | 68,966 | 14.2 | 72,021 |
| Return on equity, % | 19.5 | 39.5 | -50.6 | 22.9 | 24.1 | -4.9 | 19.5 |
| Return on capital employed, % | 12.5 | 17.1 | -26.7 | 12.7 | 14.2 | -10.6 | 14.1 |
| Equity ratio, % | 29.9 | 28.3 | 5.7 | 29.9 | 28.3 | 5.7 | 30.2 |
| Net gearing, % | 127.6 | 110.0 | 16.0 | 127.6 | 110.0 | 16.0 | 107.9 |
| Net cash flow from operating activities | -784 | 5,227 | -115.0 | 627 | 8,188 | -92.3 | 14,006 |
| Net cash flow from investing activities | -5,063 | -3,251 | 55.7 | -7,271 | -4,827 | 50.6 | -12,849 |
| Capital expenditure | 2,577 | 3,346 | -23.0 | 4,792 | 4,922 | -2.6 | 13,220 |
| % of revenue | 7.7 | 12.3 | 7.4 | 8.9 | 12.2 | ||
| Research and development costs | 847 | 698 | 21.3 | 1,777 | 1,448 | 22.7 | 2,884 |
| % of revenue | 2.5 | 2.6 | 2.8 | 2.6 | 2.7 | ||
| Order intake | 43,487 | 22,908 | 89.8 | 85,514 | 57,428 | 48.9 | 115,373 |
| Order backlog | 56,859 | 32,595 | 74.4 | 56,859 | 32,595 | 74.4 | 36,544 |
| Earnings per share, diluted and undiluted, EUR | 0.13 | 0.21 | -41.3 | 0.29 | 0.27 | 7.7 | 0.45 |
| Equity per share, EUR | 2.64 | 2.26 | 16.78 | 2.64 | 2.26 | 16.74 | 2.44 |
| Average share price, EUR | 9.11 | 5.17 | 76.2 | 9.11 | 5.17 | 76.2 | 5.55 |
| Average number of shares, diluted and undiluted, 1,000 shares | 11,834 | 11,830 | 0.0 | 11,832 | 11,826 | 0.1 | 11,828 |
| Employees, average | 700 | 662 | 5.7 | 695 | 662 | 5.0 | 665 |
| Employees, end of period | 722 | 661 | 9.2 | 722 | 661 | 9.2 | 674 |
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.
2) A significant part of the difference to previous year relates to unrealized foreign exchange gains and losses, largely driven by intra-Group borrowings.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
Order intake and order backlog
Order intake for the second quarter of 2021 amounted to EUR 43.5 million (22.9) and increased by 89.8% in comparison to the previous year.
Order intake for the first half of 2021 was EUR 85.5 million (57.4), which is an increase of 48.9% compared to the previous year. The Group's order backlog on 30 June 2021 increased to EUR 56.9 million (32.6).
Revenue
Group revenue in the second quarter of 2021 amounted to EUR 33.5 million (27.2), which is an increase of 23.1% in comparison to the previous year.
Group revenue for the first half of 2021 amounted to EUR 64.5 million (55.0) and increased by 17.1% compared to the previous year. Revenue was impacted by effects of delivery volumes by 5.0%, sales mix by 14.9% and exchange rates by -2.8%.
The conductor core application was driving the growth in Buildings and Infrastructure. The key source of growth in Defense customer industry was the camouflage net support pole application. In Equipment and other industries, we saw a Covid-19 related rebound in the business volumes of a large number of customers. In Wind power, the revenue in the second quarter was slightly lower than last year. Our order backlog, however, indicates that the growth of Wind Power will continue during the second half of the year.
Revenue by customer industry
| EUR thousand | Q2 2021 | Q2 2020 | Change % | Q1-Q2 2021 | Q1-Q2 2020 | Change % | Q1-Q4 2020 |
|---|---|---|---|---|---|---|---|
| Buildings and infrastructure | 8,684 | 5,282 | 64.4 | 15,678 | 11,497 | 36.4 | 23,451 |
| Equipment and other industries | 5,212 | 4,031 | 29.3 | 10,858 | 10,142 | 7.1 | 19,493 |
| Wind power | 7,785 | 7,867 | -1.0 | 15,165 | 13,693 | 10.8 | 28,079 |
| Machinery and electrical | 5,050 | 4,790 | 5.4 | 8,720 | 8,569 | 1.8 | 15,522 |
| Transportation | 2,728 | 2,796 | -2.4 | 5,209 | 6,172 | -15.6 | 10,226 |
| Defense | 1,785 | 768 | 132.6 | 4,029 | 2,019 | 99.6 | 5,338 |
| Telecommunications | 2,280 | 1,706 | 33.6 | 4,818 | 2,951 | 63.3 | 6,485 |
| Total | 33,524 | 27,239 | 23.1 | 64,478 | 55,044 | 17.1 | 108,595 |
Revenue by region¹)
| EUR thousand | Q2 2021 | Q2 2020 | Change % | Q1-Q2 2021 | Q1-Q2 2020 | Change % | Q1-Q4 2020 |
|---|---|---|---|---|---|---|---|
| Europe | 19,574 | 15,534 | 26.0 | 37,018 | 32,404 | 14.2 | 62,757 |
| North America | 7,234 | 4,391 | 64.8 | 12,845 | 10,210 | 25.8 | 18,022 |
| Asia-Pacific | 6,401 | 6,636 | -3.5 | 13,054 | 10,818 | 20.7 | 24,022 |
| Rest of the world | 316 | 678 | -53.5 | 1,561 | 1,612 | -3.1 | 3,795 |
| Total | 33,524 | 27,239 | 23.1 | 64,478 | 55,044 | 17.1 | 108,595 |
¹) Revenue by customer location, not by the location of the manufacturing Exel Composites business unit.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
Revenue by customer industry EUR million
Share of revenue by customer industry %
Revenue by region¹) EUR million
Share of revenue by region¹)
Operating profit
The Group's operating profit amounted to EUR 2.4 million (2.8) in the second quarter of 2021 and was 7.0% (10.3) of revenue. Adjusted operating profit²) was EUR 2.5 million (2.9) and 7.3% (10.6) of revenue.
Operating profit in the first half of 2021 increased to EUR 4.8 million (4.7), 7.4% (8.5) of revenue. Adjusted operating profit²) was EUR 4.9 million (5.0), 7.6% (9.0) of revenue. The operating profit was negatively impacted by low profit margins during the ramp-up of certain high-volume products and increased raw material costs.
Items affecting comparability amounted to a total of EUR 0.1 (0.3) million. Last year, the second quarter was also impacted by approximately EUR 0.3 million of Covid-19 pandemic related grants, which did not repeat this year.
The Group's net financial expenses in the first half of 2021 were EUR 0.0 million (-0.4). Profit before taxes was EUR 4.8 million (4.3) and profit after taxes EUR 3.4 million (3.2).
Adjusted operating profit²)
| EUR thousand | Q2 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| Operating profit | 2,363 | 2,792 | 4,786 | 4,662 | 9,417 |
| Restructuring costs | |||||
| Impairment losses and reversals | |||||
| Costs related to planned or realized business acquisition and disposal | 94 | 90 | 131 | 293 | 291 |
| Sale of intangible and tangible assets | |||||
| Expenses related to changes in legislation or legal proceedings | |||||
| Adjusted operating profit | 2,457 | 2,882 | 4,917 | 4,955 | 9,708 |
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.
Financial position
Net cash flow from operating activities for the first half of 2021 was EUR 0.6 million (8.2). The capital expenditure on fixed assets amounted to EUR 4.8 million (4.9). Net cash flow from investing activities amounted to EUR -7.3 million (-4.8) and net cash flow before financing activities amounted to EUR -6.6 million (3.4). At the end of the reporting period, the Group's liquid assets stood at EUR 7.6 million (12.8). Total depreciation, amortization and impairment of non-current assets during the first half of the year amounted to EUR 3.2 million (3.0).
On 30 June 2021, the Group's consolidated total assets were EUR 106.0 million (95.6). Interest-bearing liabilities, including lease liabilities, amounted to EUR 47.5 million (42.2). Net interest-bearing liabilities were EUR 39.9 million (29.4). Current interest-bearing liabilities totaled EUR 31.4 million. EUR 29.5 million of current interest-bearing liabilities were commercial papers. To secure the payment of commercial papers, on 30 June 2021 the company had unused, non-current (over 12 months) revolving credit facilities for EUR 39.9 million.
On 30 June 2021, equity was EUR 31.3 million (26.8) and equity ratio 29.9% (28.3). Net gearing ratio was 127.6% (110.0). Fully diluted total earnings per share were EUR 0.29 (0.27). Return on capital employed was 12.7% (14.2). Return on equity was 22.9% (24.1).
On 1 April 2021, Exel Composites paid the final payment related to the acquisition of Nanjing Jianhui Composite Materials in 2017, totaling EUR 3.8 million. The total acquisition price of the company thus amounted to EUR 8.8 million. The aforementioned acquisition price paid matched rather accurately the original estimate published in October 2016, even though the variable component of the total acquisition price was reagreed with the seller in 2018 to be higher. The increase was of the same magnitude as the reduction of the purchase price due to a decline in working capital between the October 2016 estimate and the April 2017 actual at closing of the transaction.
The dividend for the financial year 2020, totaling EUR 2.4 (2.1) million, calculated for the outstanding number of shares, was paid to the shareholders on 1 April 2021. In line with normal procedures, the dividend payment to the account operators was done on the previous banking day. The dividend payment was therefore included already in the cash flow of the first quarter of 2021. Dividend per share for the financial year 2020 was EUR 0.20 (0.18).
Research and development
Research and development costs for the first half of 2021 totaled EUR 1.8 million (1.4), representing 2.8% (2.6) of revenue.
Business development and strategy implementation
In June 2021, the Board of Directors conducted its annual strategy review and reconfirmed Exel's strategy. The main strategic focus areas as well as the company's long-term financial targets and dividend policy remained unchanged.
Exel Composites' strategy is based on scalable applications and chosen growth initiatives particularly in the wind power, buildings and infrastructure and transportation industries, expanding our global footprint and technology offering, and on improving operational efficiency.
Production in the new manufacturing facility in Austria started in the beginning of 2021 as planned. The new facility will secure new production capacity, which in line with our growth strategy will respond in the long-term to increasing demand in Central Europe and strengthens Exel's position in this market area. It also enables leveraging the Austrian unit's strong R&D capabilities and university cooperation.
One of the main targets in the strategy work has been to further integrate sustainability in all Exel's operations and business. Sustainability is a key element in our vision and purpose, which were updated at the end of last year. Our purpose is to solve challenges and help customers save resources with composites, and our vision is to be the first choice for sustainable composite solutions globally. In the remaining of the year, our focus will be on further developing the Group sustainability program and the related reporting.
Impacts of the Covid-19 pandemic
Operations
In the second quarter of 2021, all our factories operated close to normal and following the safety measures to prevent the spread of the Covid-19 pandemic.
Raw material supply and logistics operated almost normally despite challenges with global logistics and availability in some raw material categories.
Financial standing
Uncertainty and negative impact of the Covid-19-pandemic on some of our clients and customer industries continued in the second quarter of 2021. Regardless, order intake increased in the quarter.
The Group's liquidity and cash situation are good, and the Covid-19 pandemic has had limited impact on Group liquidity.
During the second quarter of 2021, Exel Composites received no Covid-19 related financial assistance under any local governmental schemes, whereas in the same period last year approximately EUR 0.3 million were received.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
Our response in relation to the Covid-19 pandemic
The health and safety of our employees, customers and business partners is a priority for Exel Composites. All units have continued with tightened Group and business unit level safety and hygiene instructions in accordance with the instructions of local health authorities. Travelling is limited and remote work as well as online meetings continue to be preferred when possible. Outsider visits to sites are reduced to minimum. Internal communication at Group level as well as locally on Covid-19 related concerns has continued in various channels.
Close and continuous interaction is maintained with customers, suppliers and business partners in order to ensure timely reaction to new developments. Given the continued uncertainty related to the Covid-19 pandemic close monitoring of the situation is a priority for us.
Major near-term risks and uncertainties
Exel Composites' most significant near-term business risk is related to customer concentration, where a notable portion of revenue comes from certain key customers. Specifically, the revenue generated from sales to the Group's largest client, operating in the wind power industry, has increased rapidly. This has significantly increased the dependency on this business and the related downside risk. Furthermore, the recent rapid increase in the cost of raw materials may extend and impair our competitiveness and profitability.
In the short-term, the Covid-19 pandemic has caused uncertainty in the global business environment and cautiousness among customers. Although underlying demand in many customer industries has improved from 2020, some customer industries continue to suffer from the negative impacts of the Covid-19-pandemic.
The company has made significant investments in the recent years, the latest one being the acquisition Diversified Structural Composites, DSC in the USA. The future estimates made at the time of these investments and acquisitions may not materialize as planned, which may trigger a need to adjust the values of the purchased assets in the company's balance sheet.
The risk management and risks related to the operation of Exel Composites are described in detail in the Corporate Governance Statement for 2020 and at the company's website www.exelcomposites.com.
Sustainability and corporate responsibility
Exel is committed to responsible and sustainable operations through its corporate values: customer focused, integrity, One Exel, caring and innovative. Sustainability is an important part of Exel Composites' business, products and solutions.
Exel Composites' material sustainability topics are the following:
- Environmental responsibility: Responsible products, responsible operations
- Social responsibility: Responsible employer, health and safety, diversity and nondiscrimination, human rights in own operations and supply chain
- Corporate Governance: Corporate responsibility governance and compliance, anti-corruption and bribery
In the first half of 2021, Exel Composites continued its sustainability work. A new, dedicated sustainability team representing different areas of the organization was established with the purpose of further developing the Group sustainability program and the related reporting. The Covid-19 pandemic continued to impact the activities and operations especially in the health and safety area.
Information on sustainability and corporate responsibility is available on the corporate website at www.exelcomposites.com.
Organization and personnel
On 30 June 2021, Exel Composites employed 722 (661) people, of whom 265 (225) in Finland and 457 (436) in other countries. The average number of employees during the financial year was 695 (662).
Incentive programs
Exel Composites' short-term incentive program covers all employees. Office employees receive a monthly salary and an annual bonus tied to the achievement of annually established goals emphasizing growth and profitability. Production employees are also eligible for incentive compensation. Their annual bonus is mainly based on factory profitability and production related performance indicators.
The Group has long-term incentive programs for the President and CEO and the Group Management Team and selected key employees of the company. The aim of the programs is to combine the objectives of the shareholders and the executives in order to increase the value of the company, to commit the executives to the company and to offer the executives a competitive reward program. The Board of Directors makes the decision on the program annually.
In February 2021, Exel Composites announced the continuation of a share-based long-term incentive program for the top management of the company. The 2021 performance-based plan is part of the share-based long-term incentive program published on 4 May 2017. Similarly to the previous programs within this plan, the performance targets applied to the plan that commenced at the beginning of 2021 are adjusted operating profit (EBIT) and the total shareholder return of the company's share (TSR).
More information on remuneration and Exel Composites' Remuneration Policy is available at www.exelcomposites.com.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
Share and shareholders
Exel Composites' share is listed on Nasdaq Helsinki Ltd in the Industrials sector.
On 30 June 2021, Exel Composites' share capital was EUR 2.1 million and the number of shares was 11,896,843. There were no changes in the share capital during the review period.
During the review period, Exel Composites held a total of 63,337 of its own shares which are part of the share-based long-term incentive program for the top management.
On 30 June 2021, the share price closed at EUR 10.00. During the review period, the average share price was EUR 9.11, the highest share price EUR 11.60 and the lowest share price EUR 7.28.
A total of 1,408,994 shares were traded at Nasdaq Helsinki Ltd., which represents 11.9% of the average number of shares. On 30 June 2021, Exel Composites' market capitalization was EUR 118.3 million (56.4).
Exel Composites had a total of 6,692 (5,951) shareholders on 30 June 2021.
During the reporting period Exel Composites received no flagging notifications in accordance with the Finnish Securities Market Act regarding changes in shareholdings.
Information on the company's shareholders is available on the corporate website at www.exelcomposites.com.
Other events during the reporting period
Decisions of the AGM 2021
The Annual General Meeting, AGM, of Exel Composites Plc was held on 23 March 2021 in Vantaa, Finland. The resolutions of the AGM were published as a stock exchange release on 23 March 2021 and are available on the corporate website at www.exelcomposites.com.
Financial results briefing
Exel Composites will hold a financial results briefing regarding the Q1-Q2 2021 Half Year Financial Report on 20 July 2021 at 12:30 EET. Participation requires registration in advance.
Vantaa, 20 July 2021
Exel Composites Plc
Board of Directors
For further information, please contact:
Mr. Riku Kytömäki, President and CEO
tel. +358 50 511 8288
[email protected]
Mr. Mikko Kettunen, CFO
tel. +358 50 347 7462
[email protected]
NOTES TO THE HALF YEAR FINANCIAL REPORT
1 January - 30 June 2021
Accounting principles
This Half Year Financial Report has been prepared in accordance with IAS 34, Interim Financial Reporting. The same accounting policies have been applied as in the previous financial statements.
Preparation of financial statements in accordance with the IFRS standards requires Exel Composites' management to make estimates and assumptions that have an effect on the amount of assets and liabilities on the balance sheet at the closing date as well as the amounts of income and expenses for the financial period. In addition, the management must exercise its judgment regarding the application of accounting policies. Since the estimates and assumptions are based on the views at the date of the financial statements, they include risks and uncertainties. The actual results may differ from the estimates and assumptions.
The amounts presented in the income statement and balance sheet are Group figures. The amounts presented in the release are rounded, so the sum of individual figures may differ from the sum reported.
This Half Year Financial Report is unaudited.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
| EUR thousand | Q2 2021 | Q2 2020 | Change % | Q1-Q2 2021 | Q1-Q2 2020 | Change % | Q1-Q4 2020 |
|---|---|---|---|---|---|---|---|
| Revenue | 33,524 | 27,239 | 23.1 | 64,478 | 55,044 | 17.1 | 108,595 |
| Materials and services | -14,664 | -10,890 | 34.7 | -27,645 | -21,825 | 26.7 | -42,775 |
| Employee benefit expenses | -9,459 | -7,590 | 24.6 | -18,176 | -15,692 | 15.8 | -30,807 |
| Depreciation and impairment | -1,297 | -1,133 | 14.5 | -2,600 | -2,268 | 14.6 | -4,503 |
| Depreciation of right-of-use assets | -278 | -379 | -26.7 | -555 | -739 | -25.0 | -1,352 |
| Other operating expenses | -5,808 | -4,805 | 20.9 | -11,368 | -10,595 | 7.3 | -21,429 |
| Adjustment to lease expenses on capitalized contracts | 296 | 355 | -16.6 | 591 | 710 | -16.8 | 1,367 |
| Other operating income | 49 | -5 | -1180.6 | 61 | 27 | 129.0 | 320 |
| Operating profit | 2,363 | 2,792 | -15.4 | 4,786 | 4,662 | 2.7 | 9,417 |
| Net financial items | -449 | 185 | -342.4 | 78 | -343 | -122.8 | -2,201 |
| Financial expenses on capitalized lease contracts | -16 | -25 | -33.9 | -34 | -51 | -32.4 | -92 |
| Profit before tax | 1,897 | 2,953 | -35.7 | 4,830 | 4,268 | 13.2 | 7,124 |
| Income taxes | -412 | -424 | -2.8 | -1,383 | -1,070 | 29.3 | -1,755 |
| Profit/loss for the period | 1,485 | 2,529 | -41.3 | 3,447 | 3,198 | 7.8 | 5,368 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: | |||||||
| Exchange differences on translating foreign operations | -125 | -190 | 34.0 | 959 | -627 | 253.1 | -665 |
| Income tax relating to components of other comprehensive income | |||||||
| Items that will not be classified to profit or loss: | |||||||
| Defined benefit plan actuarial gains(+)/ loss (-), net tax | 0 | 0 | 0 | 0 | 0 | 0 | -34 |
| Other comprehensive income, net of tax | -125 | -190 | 34.0 | 959 | -627 | 253.1 | -699 |
| Total comprehensive income | 1,360 | 2,339 | -41.9 | 4,406 | 2,572 | 71.3 | 4,669 |
| Profit/loss attributable to: | |||||||
| Equity holders of the parent company | 1,485 | 2,529 | -41.3 | 3,447 | 3,198 | 7.8 | 5,368 |
| Comprehensive income attributable to: | |||||||
| Equity holders of the parent company | 1,360 | 2,339 | -41.9 | 4,406 | 2,572 | 71.3 | 4,669 |
| Earnings per share, diluted and undiluted, EUR | 0.13 | 0.21 | -41.3 | 0.29 | 0.27 | 7.7 | 0.45 |
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR thousand | 30 June 2021 | 30 June 2020 | Change | 31 December 2020 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 12,763 | 12,863 | -101 | 12,597 |
| Other intangible assets | 3,698 | 3,903 | -205 | 3,948 |
| Tangible assets | 28,954 | 20,964 | 7,991 | 26,193 |
| Right-of-use assets 1) | 2,747 | 4,225 | -1,478 | 3,234 |
| Deferred tax assets | 1,894 | 1,311 | 583 | 1,737 |
| Other non-current assets | 48 | 48 | 0 | 48 |
| Non-current assets total | 50,105 | 43,315 | 6,790 | 47,758 |
| Current assets | ||||
| Inventories | 21,104 | 17,202 | 3,902 | 16,182 |
| Trade and other receivables | 27,200 | 22,372 | 4,829 | 20,887 |
| Cash at bank and in hand | 7,591 | 12,758 | -5,167 | 11,974 |
| Total current assets | 55,896 | 52,332 | 3,564 | 49,043 |
| Total assets | 106,000 | 95,646 | 10,354 | 96,800 |
| EQUITY AND LIABILITIES | ||||
| Shareholders' equity | ||||
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
| Other reserves | 129 | 129 | 0 | 129 |
| Invested unrestricted equity fund | 2,539 | 2,539 | 0 | 2,539 |
| Translation differences | 2,810 | 1,889 | 921 | 1,851 |
| Retained earnings | 20,199 | 16,872 | 3,327 | 16,851 |
| Profit for the period | 3,447 | 3,198 | 248 | 5,368 |
| Equity attributable to holders of the parent company | 31,266 | 26,770 | 4,497 | 28,880 |
| Total equity | 31,266 | 26,770 | 4,497 | 28,880 |
| Non-current liabilities | ||||
| Interest-bearing liabilities | 14,214 | 4,205 | 10,009 | 10,551 |
| Non-current lease liabilities | 1,834 | 3,102 | -1,268 | 2,332 |
| Interest-free liabilities | 592 | 550 | 42 | 573 |
| Deferred tax liabilities | 388 | 325 | 63 | 361 |
| Total non-current liabilities | 17,027 | 8,182 | 8,846 | 13,817 |
| Current liabilities | ||||
| Interest-bearing liabilities | 30,332 | 33,571 | -3,239 | 29,169 |
| Current lease liabilities | 1,104 | 1,318 | -215 | 1,089 |
| Trade and other non-current liabilities | 26,271 | 25,806 | 465 | 23,846 |
| Total current liabilities | 57,707 | 60,695 | -2,988 | 54,104 |
| Total equity and liabilities | 106,000 | 95,646 | 10,354 | 96,800 |
1) Buildings EUR 2,644 thousand, Machinery and equipment (incl. vehicles) EUR 103 thousand.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR thousand | Q1-Q2 2021 | Q1-Q2 2020 | Change | Q1-Q4 2020 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Profit for the period | 3,447 | 3,198 | 248 | 5,368 |
| Adjustments 1) | 4,897 | 4,527 | 370 | 10,131 |
| Change in working capital 2) | -5,738 | 1,279 | -7,017 | 1,659 |
| Cash flow generated by operations | 2,606 | 9,005 | -6,398 | 17,158 |
| Interest paid | -231 | -339 | 108 | -625 |
| Interest received | 19 | 37 | -18 | 108 |
| Other financial items | -273 | -30 | -243 | -1,368 |
| Income taxes paid | -1,493 | -484 | -1,009 | -1,266 |
| Net cash flow from operating activities | 627 | 8,188 | -7,561 | 14,006 |
| Cash flow from investing activities | ||||
| Acquisition of subsidiaries 2) | -2,534 | 0 | -2,534 | 0 |
| Purchases of non-current assets | -4,792 | -4,922 | 130 | -13,081 |
| Proceeds from sale of non-current assets | 55 | 95 | -40 | 232 |
| Net cash flow from investing activities | -7,271 | -4,827 | -2,444 | -12,849 |
| Cash flow before financing activities | -6,643 | 3,361 | -10,005 | 1,157 |
| Cash flow from financing activities | ||||
| Share issue | 0 | 0 | 0 | 0 |
| Proceeds from long-term borrowings | 4,000 | 0 | 4,000 | 7,000 |
| Instalments of long-term borrowings | 0 | 0 | 0 | 0 |
| Change in short-term loans | 812 | 5,389 | -4,576 | 706 |
| Instalments of lease liabilities | -557 | -660 | 103 | -1,275 |
| Treasury shares | 0 | 0 | 0 | 0 |
| Dividends paid | -2,367 | -2,129 | -237 | -2,129 |
| Net cash flow from financing activities | 1,889 | 2,600 | -711 | 4,302 |
| Change in liquid funds | -4,755 | 5,961 | -10,716 | 5,459 |
| Liquid funds in the beginning of period | 11,974 | 6,930 | 5,044 | 6,930 |
| Exchange rate fluctuations on liquid funds | 372 | -132 | 505 | -415 |
| Liquid funds through business acquisitions | 0 | 0 | 0 | 0 |
| Liquid funds at the end of period | 7,591 | 12,758 | -5,167 | 11,974 |
1) Depreciations and amortization EUR 3,160 thousand, tax on income from operations EUR 1,383 thousand, other financial income and expenses EUR -44 thousand, other adjustments EUR 398 thousand.
2) EUR 1,267 thousand of the final payment related to the acquisition of Nanjing Jianhui Composite Materials was accrued as cost and its effect on cash flow is therefore reported in Net cash flow from operating activities. EUR 2,534 thousand, which was posted as acquisition of shares, is reported in the Net cash flow from investing activities.
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
| EUR thousands | Share capital | Invested unrestricted equity fund | Translation differences | Retained earnings | Total |
|---|---|---|---|---|---|
| 2020 | |||||
| Balance at the beginning of the reporting period | 2,141 | 2,668 | 2,516 | 18,977 | 26,302 |
| Comprehensive result | -627 | 3,198 | 2,572 | ||
| Defined benefit plan actuarial gains (+) / loss (-), net of tax | 0 | 0 | |||
| Other items | -12 | -12 | |||
| Dividend | -2,129 | -2,129 | |||
| Treasury shares | 67 | 67 | |||
| Share-based payments reserve | -31 | -31 | |||
| Balance at the end of the reporting period | 2,141 | 2,668 | 1,889 | 20,071 | 26,770 |
| 2021 | |||||
| Balance at the beginning of the reporting period | 2,141 | 2,668 | 1,851 | 22,219 | 28,880 |
| Comprehensive result | 959 | 3,447 | 4,406 | ||
| Defined benefit plan actuarial gains (+) / loss (-), net of tax | 0 | 0 | |||
| Other items | -45 | -45 | |||
| Dividend | -2,360 | -2,360 | |||
| Treasury shares | 26 | 26 | |||
| Share-based payments reserve | 359 | 359 | |||
| Balance at the end of the reporting period | 2,141 | 2,668 | 2,810 | 23,646 | 31,266 |
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
14
QUARTERLY KEY FIGURES
| EUR thousand | 2021 Q2 | 2021 Q1 | 2020 Q4 | 2020 Q3 | 2020 Q2 | 2020 Q1 |
|---|---|---|---|---|---|---|
| Revenue | 33,524 | 30,954 | 27,508 | 26,043 | 27,239 | 27,805 |
| Materials and services | -14,664 | -12,981 | -10,251 | -10,699 | -10,890 | -10,934 |
| Employee benefit expenses | -9,459 | -8,717 | -8,395 | -6,720 | -7,590 | -8,103 |
| Depreciation and impairment | -1,575 | -1,579 | -1,395 | -1,452 | -1,512 | -1,495 |
| Operating expenses | -5,513 | -5,264 | -4,834 | -5,343 | -4,451 | -5,434 |
| Other operating income | 49 | 12 | 99 | 194 | -5 | 31 |
| Operating profit | 2,363 | 2,423 | 2,732 | 2,023 | 2,792 | 1,870 |
| Net financial items | -465 | 509 | -1,225 | -675 | 160 | -554 |
| Profit before taxes | 1,897 | 2,933 | 1,507 | 1,348 | 2,953 | 1,316 |
| Income taxes | -412 | -971 | -409 | -277 | -424 | -646 |
| Profit/loss for the period | 1,485 | 1,961 | 1,098 | 1,072 | 2,529 | 670 |
| Earnings per share, diluted and undiluted, EUR | 0.13 | 0.17 | 0.09 | 0.09 | 0.21 | 0.06 |
| Average number of shares, diluted and undiluted 1,000 shares | 11,834 | 11,830 | 11,828 | 11,827 | 11,826 | 11,821 |
| Average number of personnel | 700 | 691 | 674 | 662 | 662 | 662 |
Revenue by customer industry by quarter
| EUR thousand | 2021 Q2 | 2021 Q1 | 2020 Q4 | 2020 Q3 | 2020 Q2 | 2020 Q1 |
|---|---|---|---|---|---|---|
| Buildings and infrastructure | 8,684 | 6,995 | 7,047 | 4,907 | 5,282 | 6,216 |
| Equipment and other industries | 5,212 | 5,646 | 5,079 | 4,272 | 4,031 | 6,111 |
| Wind power | 7,785 | 7,380 | 6,582 | 7,804 | 7,867 | 5,826 |
| Machinery and electrical | 5,050 | 3,671 | 3,700 | 3,252 | 4,790 | 3,780 |
| Transportation | 2,728 | 2,483 | 1,859 | 2,195 | 2,796 | 3,376 |
| Defense | 1,785 | 2,244 | 1,406 | 1,914 | 768 | 1,251 |
| Telecommunications | 2,280 | 2,536 | 1,834 | 1,700 | 1,706 | 1,245 |
| Total | 33,524 | 30,954 | 27,508 | 26,043 | 27,239 | 27,805 |
Revenue by region by quarter
| EUR thousand | 2021 Q2 | 2021 Q1 | 2020 Q4 | 2020 Q3 | 2020 Q2 | 2020 Q1 |
|---|---|---|---|---|---|---|
| Europe | 19,574 | 17,444 | 17,031 | 13,322 | 15,534 | 16,870 |
| North America | 7,234 | 5,611 | 3,328 | 4,483 | 4,391 | 5,820 |
| Asia-Pacific | 6,401 | 6,654 | 6,438 | 6,766 | 6,636 | 4,182 |
| Rest of the world | 316 | 1,245 | 711 | 1,472 | 678 | 933 |
| Total | 33,524 | 30,954 | 27,508 | 26,043 | 27,239 | 27,805 |
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
COMMITMENTS AND CONTINGENCIES
| EUR thousand | 30 June 2021 | 30 June 2020 | 31 December 2020 |
|---|---|---|---|
| Commitments on own behalf | |||
| Mortgages | 0 | 0 | 0 |
| Floating charges | 0 | 0 | 0 |
| Operating leases | |||
| Not later than one year | 19 | 5 | 22 |
| 1 - 5 years | 0 | 0 | 0 |
| Other liabilities | 3 | 253 | 253 |
DERIVATIVE FINANCIAL INSTRUMENTS NOMINAL VALUE
| EUR thousands | 30 June 2021 | 30 June 2020 | 31 December 2020 |
|---|---|---|---|
| Interest rate swaps | 0 | 6,251 | 2,852 |
EXEL COMPOSITES
Half Year Financial Report Q1-Q2 2021
exel
COMPOSITES
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.