Transcript Document

Results for the 2005 financial year
Ari Jokelainen
President & CEO
27 February 2006
2005 highlights
• Goal of becoming the world’s number 1 pultruder achieved
• Exel to acquire the Australian company Pacific Composites
• Net sales increased by 8-9% to EUR 91.3 (83.9) million
•Operating profit EUR 12.4 (13.7) million, down 9.6%
• Industry Division’s operating profit up 37.8% to
EUR 10.8 (7.8) million
• Proposed dividend EUR 0.40
Changes in Exel Group
•
Faserprofil GmbH from Austria acquired in April 2005
–
•
•
Acquisition increased Industry Division’s net sales by EUR 3.1 million
Exel Sports began operations in April 2005
–
Marketing, sales, logistics and product development of the Sport Division’s
consumer products incorporated into the new company
–
Mika Sulin appointed Managing Director
All finishing, assembly and packaging operations for poles and
floorball products to be subcontracted to China
–
Transfer to take place in phases throughout 2006
–
Reduction of some 60-70 positions at Mäntyharju factory
•
One-off costs of about 2 ER million
•
Yearly profit improvement of some 2 million with existing volumes
Financial review 2005
Consolidated key figures
2005
2004
Change %
Net sales
91.3
83.9
8.9%
Operating profit
12.4
13.7
-9.6%
Profit for the year
8.9
9.1
-2.5%
Solvency ratio, %
50.0%
44.9%
11.4%
Net gearing
30.2%
36.0%
-16.7%
diluted), EUR
0.76
0.80
-5.0%
Equity per share, EUR
2.34
1.84
27.2%
Earnings per share (fully
Consolidated net sales and profit performance
•
In 2005 group net sales grew by 8.9% to EUR 91.3 (83.9) million
•
Net sales in Q4 EUR 21.9 (19.8) million
•
In 2005 operating profit EUR 12.4 (13.7) million, down 9.6% on the
previous year
–
•
In Q4/2004 a one-time pension provision release, EUR 0.5 million
Operating profit in Q4 EUR 2.2 (3.3) million
Exel Group, net sales by division
2005
Million
Industry
Sport
Exel Group
EUR
2004
EUR Change, %
56.8
34.5
48.3
35.5
18.0
-3.4
91.3
83.9
8.
9
Net sales 2005
Sport
Industry
38%
62%
Exel Group, operating profit by division
Million
Industry
Sport
Exel Group
Change, %
2005
EUR
2004EUR
10.8
1.6
7.8
5.9
37.8
-73.0
12.4
13.7
-9.6
Operating profit 2005
Sport
13%
Industry
87%
Key figures of the Industry Division
Q4/2005 Q4/2004
Net sales, M€
Oper. profit, M€
% of net sales
Personnel (aver.)
15.1
3.2
21.5%
241
Change
11.7
29.0%
2.3
39.0%
19.9%
218
10.6%
1-12/05 1-12/04
Change
56.8 48.3
10.8 7.8
19.0% 16.2%
236
224
17.5%
37.8%
5.4%
Industry Division
•
•
Net sales increased by 17.5% to EUR 56.8 (48.3) million
–
Increase in demand for new and existing customer applications
–
Faserprofil acquisition increased net sales by 3.1 million
Operating profit increased by 37.8% to EUR 10.8 (7.8) million
–
Increased volumes, improved efficiency and stringent cost control
•
New production lines opened in Germany and Austria
•
Preparations for China factory construction finalized
Key figures of the Sport Division
Q4/2005 Q4/2004
Net sales, M€
Oper. profit, M€
% of net sales
Personnel (aver.)
6.9
-1.1
-15.5%
228
Change
8.1
-15.0%
1.3
-208.0%
12.2%
206
10.7%
1-12/05 1-12/04
34.5
1.6
-4.6%
231
35.5
5.9
16.5%
217
Change
-2.9%
-73.0%
6.5%
Sport Division
•
Net sales fell by 2.9% to EUR 34.5 (35.5) million
–
•
Nordic Walking markets weakened and competition intensified during H2
Operating profit fell to EUR 1.6 (5.9) million
–
Major investments in opening new markets (North America, Far East, new European
countries) and strengthening of organization
–
Selling off of existing stocks by retailers in the main Central European markets during
Q4
•
Significant efforts being made to open new markets in North America, China and
new European countries
•
Market for OEM products (windsurfing masts and laminates) is stable
•
Restructuring of pole and floorball assembly
–
Non-recurring costs EUR 2.0 million, yearly benefit over EUR 2 million
7. Exel’s Financial Performance: Net sales in 1998-2005
MEUR
100
90
80
70
60
50
40
30
20
10
0
Industry
Sport
1998
1999
2000
2001
2002
2003
2004
2005
7. Exel’s Financial Performance, operating profit in 19982005
MEUR
16
14
12
10
Sport
Industry
8
6
4
2
0
1998 1999 2000 2001 2002 2003 2004 2005
Balance sheet
2005
Return on equity, %
37.3%
ROI, %
34.0%
Equity, M€
27.0
Solvency ratio, %
50.0%
Equity/share, EUR
0.79
Net interest-bearing liabilities, M€
8.1
Net gearing, %
30.2%
Cash flow from business operations, M€ 7.9
2004
47.8%
45.2%
20.7
44.9%
0.84
7.4
36.0%
15.9
Balance sheet
•
Cash flow balance at the end of 2005 EUR 54.6 (46.3) million
• Austrian acquisition
• Working capital demand due to the increase in sales
volumes
•
Solvency ratio 50.0% (44.9)
•
Cash flow from business operations EUR +7.9 (+15.9) million
• Exceptionally low net working capital at the turn of the
previous year
• EUR 1.5 million in taxes paid due to good result in 2004
Share price
Exel Oyj 3/2005-2/2006
•
35.7% of shares traded in
2005
•
Market capitalization EUR
150.1 (127.0) million on 30
Dec. 2005
•
Highest share price EUR
14.80 (12.00) and lowest
EUR 11.35 (5.87)
Principal shareholders on 30 December 2005
Shareholder
Number of % of shares
shares
and votes
Nordstjernan AB
Ilmarinen Mutual Pension Insurance
Company
Varma Mutual Pension Insurance
Company
Veikko Laine Oy
Berling Capital Oy
Ulkomarkkinat Oy
OP Suomi Kasvu Investment Fund
Suutarinen Matti
Eläke-Fennia Mutual insurance Comp.
Nordea Pankki Suomi Oyj (adm. reg.)
Aktia Secura Investment Fund
Renkkeli Oy
Fondita Nordic Small Cap Inv. Fund
3 496 506
30.40
749 400
6.51
513 600
418 800
412 000
346 600
335 800
294 400
226 100
219 188
201 000
200 000
176 400
4.66
3,69
3.58
3.01
2.90
2.56
1.96
1.90
1.74
1.73
1.53
Outlook
•
Main markets for NW products in Central Europe to remain weak
during the spring
•
Efforts to open new NW markets continue. New markets expected to
increase net sales in the last quarter of 2006
•
Partial subcontracting of pole and floorball products to the far East will
improve Sport Division’s profitability towards the end of the year. Oneoff costs EUR 2 million, yearly profit improvement EUR 2 million
•
Pacific Composites will significantly increase net sales for the Industry
Division. The acquisition strengthens and speed up the growth of
business operations in Far East markets.
•
Lack of supply of carbon fibre will continue in 2006 limiting growth
opportunities
•
Group net sales expected to increase significantly. Due to major
restructuring of sports production and the acquisition of Pacific
Composites, the profit will be influenced by a number of major nonrecurring items, meaning that the profit before taxes is expected to be
slightly lower than 2005.