Interim report Q Vesa Korpimies President and CEO

Transcription

1 Interim report Q Vesa Korpimies President and CEO 2 May 2008

2 Q1 in brief Net Sales of EUR 24.1 (28.8) million Operating Profit of EUR 1.4 (3.5) million Operating Profit of Exel Composites EUR 2.9 (4.3) million Heavy losses in Exel Sports Brands continued, operating loss of EUR -1.4 (-0.7) million Fully diluted earnings per share EUR (0.19)

3 Key figures of Exel Composites Net Sales, M Oper. profit, M as % of sales Average no. of personnel Q1/ Q1/ change, %

4 Exel Composites Net sales decreased by 18.5% from previous year to EUR 21.8 (26.7) million Lower demand in the wind energy segment Divestment of Plastics business in Germany Weaker market conditions also in other segments, especially in building and construction partly due to the delay of start-up of new construction projects Price competition toughened further

5 Exel Composites Operating profit decreased to EUR 2.9 (4.3) million Reduction in sales and toughened price competition The Oudenaarde site in Belgium was assessed to meet the ISO 9001 quality standard Now covers Australia, Austria, Belgium, Finland and Great Britain

6 Key figures of Exel Sports Brands Net Sales, M Oper. profit, M as % of Sales Average no. of personnel Q1/ Q1/ change, %

7 Exel Sports Brands Net Sales decreased by 14.9% from previous year to EUR 3.2 (3.7) million Mild winter High cost level Problems with logistics Write-downs of winter poles inventory Additional warehousing and air freight costs Operating loss of EUR -1.4 (-0.7) million

8 Exel Sports Brands During the first quarter of 2008, a comprehensive turnaround program was initiated Supply chain management was reinforced Further measures to increase the speed of the turnaround and structural initiatives

9 Group net sales M Q1/2008 Q1/2007 change, % 2007 Exel Composites Exel Sports Brands Total

10 Group operating profit M Q1/2008 Q1/2007 change, % 2007 Exel Composites Exel Sports Brands Total

11 Balance sheet, cash flow and financing Consolidated total asses of EUR 74.7 (84.0) million Equity of EUR 23.1 (29.4) million and equity ratio of EUR 31.6% (31.7%) Cash flow of business operations of EUR -0.2 (+1.2) million Liquid assets of EUR 4.4 (5.9) million at the end of reporting period Interest bearing liabilities of EUR 32.9 (35.4) million Net gearing ratio of 123.3% (110.9)

12 Consolidated key figures 1,000 Q1/2008 Q1/2007 change, % 2007 Net sales 24,078 28, ,489 Operating profit % of net sales 1, , , Profit for the period -92 2, ,010 SH s equity 23,070 26, ,533 Capital employed 55,930 61, ,295 ROE, % ROCE, % Equity ratio, % Net gearing, % EPS, EPS, fully diluted,

13 Shares and share capital 6/2007-5/ % (5.8%) of shares outstanding were traded during the review period The highest share quotation was EUR (14.00) and the lowest EUR 9.50 (12.50) The share price closed at EUR (13.00) and the market capitalization at the end of the review period was EUR (154.7) million

14 Largest shareholders (6 May 2008) Nordstjernan AB Keskinäinen Eläkevakuutusyhtiö Ilmarinen Berling Capital Oy OP Suomi Pienyhtiöt Veikko Laine Oy Keskinäinen Eläkevakuutusyhtiö Varma Ulkomarkkinat Oy ABN Amro Finland Fondita Nordic Small Cap Inv. Fund Suutarinen Matti SEB (nominee registered) Number of shares 3,496, , , , , , , , , , ,046 Percentage of share capital

15 Outlook The global pultrusion market is expected to be affected by a worldwide business slow-down Growth opportunities for Exel Composites may be available for example in transportation and machine industry segments New product applications are continuously being sought for Exel Composites may have a weak development in the telecommunications segment (emerging technologies) During H2/2008 sales in building/construction and wind energy may be lower than in 2007 Price competition has further increased putting pressure on profitability

16 Outlook Provisions for restructuring costs will be made in the second quarter of 2008 Those are estimated to be maximum at the level of EUR 7 million Due to these provisions, the profit before taxes for the second quarter is expected to be negative For the full-year 2008, the profit before taxes is expected to be negative

17 Exel Outdoor business to Karhu Sports ESB will be divided into two businesses: floorball and outdoor Exel will transfer the outdoor business of Exel Sports Brands to Karhu Sports The remaining floorball business will be organized as a separate unit within Exel Group Karhu Sports will take over the outdoor business, and acquire the inventory and order backlog related to ESB outdoor products through an asset deal The deal also includes a long-term licensing agreement related to use of Exel brand for selected product groups The title to the IPRs remains with Exel

18 Exel Outdoor business to Karhu Sports The employees of the outdoor business in Finland and Germany will be transferred to Karhu Sports as existing employees 9 in Finland and 18 in Germany A condition precedent for the business transfer is that the consultations related to personnel in Germany are concluded according to German law The consultations are expected to be concluded during June 2008 The parties have agreed not to disclose the transaction value of the business transfer

19 Further rationalization of Exel Sports Brands The remaining floorball business of Exel Sports Brands will be operated as separate entity and its operations streamlined In 2007, the business had a turnover of some EUR 5 million and it has a leading market position in the Nordic floorball market Exel will conduct a strategic review and evaluate different structural alternatives for the business

20 Focus on core activity Business transfer will streamline the business structure of Exel The transaction secures the continued precense and distribution of Exel branded poles in a model that strengthens the profitability Exel can now sharpen its focus on Exel Composites