Transcript Document

Exel Oyj Interim Report for 1.1. – 31.3.2007
Göran Jönsson, President & CEO
Exel Oyj Interim Report 1-3/2007
Highlights
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Net sales EUR 28.8 million, up 12.5%
Operating profit EUR 3.5 million compared to EUR 0.6 million including EUR 1.9 million of non-recurring items first quarter 2006
Operating profit 12.2% (2.4%) of net sales
Return on equity 36.2% (4.6%)
Return on capital employed 24.3% (5.0%)
Earnings per share EUR 0.19 (0.03) adjusted for full dilution
New structure: Industry including all production (Mäntyharju, Plastics
transferred)
Exel Oyj Interim Report 1-3/2007
Industry Division’s Key Figures
Q1/2007 Q1/2006 Change
Net sales, M€
Oper. profit, M€
% of net sales
Average personnel
26.7
4.3
16.0%
506
23.1
2.1
9.0%
424
2006
15.4% 105.0
106.4% 9.0
8.5%
19.3%
510
Exel Oyj Interim Report 1-3/2007
Industry Division
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The Industry Division’s net sales increased to EUR 26.7
(23.1) million, an increase of 15.4 per cent
– Growth mainly due to the integration of the Pacific
Composites Group and new profile applications
especially for building, construction and energy
industries
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Antenna profile market down from last year
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Strong efforts to introduce new applications
Exel Oyj Interim Report 1-3/2007
Industry Division
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Profitability remained on a good level despite
considerable increases in raw material prices
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Operating profit grew by 106.4% to EUR 4.3 (2.1
including 1.5 million non-recurring items) million
– Improvement in profitability caused by higher sales
volumes and productivity gains at the main factories
– Belgian factory in particular has achieved better
productivity and operating profit than last year
Exel Oyj Interim Report 1-3/2007
Industry Division
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Short supply of certain carbon fibre types continued
having slowed down sales of some new applications
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Most carbon fibre suppliers have announced increase in
production capacity – available on the market in stages
during 2007-2008
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Synergies and benefits of the Pacific Composites Group
have been successfully gained
Exel Oyj Interim Report 1-3/2007
Sport Division’s Key Figures
Q1/2007 Q1/2006 Change
Net sales, M€
Oper. profit, M€
% of net sales
Average personnel
3.7
5.9
-36.9%
-0.7
-1.6
55.2%
-18.9% -26.6%
52
73
-28.8%
2006
19.3
-9.4
-48.8%
69
Exel Oyj Interim Report 1-3/2007
Sport Division
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The Sport Division’s net sales decreased by 36.9% from the previous year from
EUR 5.9 million to EUR 3.7 million mainly due to
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Mild winter, which also had a negative impact on reorders
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Delays in deliveries from Chinese suppliers
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Nordic Walking market in Germany has recovered slightly
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Agreements signed with distributors in Italy, France and South-Korea to
generate additional sales
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Sales of floorball products have developed well during the quarter
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Operating loss EUR -0.7 (-1.2 before non-recurring items) million
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Margins were in line with expectations, but the quarter resulted in an operating
loss due to the substantially lower sales than previous year, especially in
continental Europe
Exel Oyj Interim Report 1-3/2007
Group Net Sales, EUR million
Q1/2007 Q1/2006
Industry
Sport
Total
26.7
3.7
28.8
23.1
5.9
25.6
2006
105.0
19.3
112.4
Exel Oyj Interim Report 1-3/2007
Group Operating Profit, EUR million
Q1/2007 Q1/2006
Industry
Sport
Total
4.3
-0.7
3.5
2.1
-1.6
0.6
Change
106.4%
55.2%
484.7
2006
9.0
-9.4
0.4
Exel Oyj Interim Report 1-3/2007
Exel Group
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The Group’s net sales in January-March grew by 12.5% on
the previous year to EUR 28.8 (25.6) million
– The major part of the growth is stemming from the
acquisition of Pacific Composites
– Sport Division’s cross-country and alpine products sales
suffered from the mild winter and stiff competition.
Additionally, Sport sales were impacted negatively by
quality and delivery problems due to the transfer of the
pole production to China
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Operating profit increased to EUR 3.5 million compared to
EUR 0.6 million (including non-recurring items of EUR -1.9
million) the corresponding period last year
– Improvement based on the restructuring measures taken
in 2006, and the impact of the Pacific Composites
acquisition
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Net profit for the reporting period EUR 2.3 (0.3) million
Exel Oyj Interim Report 1-3/2007
Key Financial Figures, EUR million
Net sales
Operating profit
% of net sales
Profit for the period
Shareholders’ equity
Interest-bearing liabilities
Capital employed
Return on equity, %
Return on capital employed, %
Equity ratio, %
Net gearing, %
Earnings per share, diluted, EUR
Equity per share, EUR
1.1.-31.3.2007
1.1.-31.3.2006
28.8
3.5
12.2%
2.3
26.6
35.4
61.9
36.2%
24.3%
31.7%
110.9%
0.19
2.23
25.6
0.6
2.4%
0.3
29.4
33.2
62.6
4.6%
5.0%
35.1%
86.7%
0.03
2.49
2006
112.4
0.4
0.3%
-0.7
24.4
33.7
58.1
-2.9%
1.2%
29.9%
112.8%
-0.06
2.05
Exel Oyj Interim Report 1-3/2007
Balance Sheet and Financial Position
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Consolidated balance sheet total at the end of the reporting period
stood at EUR 84.0 (83.9) million
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Equity EUR 26.6 (29.4) million
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Equity ratio 31.7 (35.1) per cent
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Interest-bearing liabilities EUR 35.4 (33.2) million of which short-term
liabilities accounted for EUR 9.9 (6.0) million
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Net interest-bearing liabilities were EUR 29.5 (25.5) million and the
net gearing 110.9 (86.7) per cent
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Cash flow from business operations EUR -1.2 (+1.3) million
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At the end of the reporting period, the Group’s liquid assets stood at
EUR 5.9 million, compared with EUR 6.2 million at the end of 2006
Share price
Exel Oyj 5/2006 - 4/2007
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5.8% of shares traded in Q1
2007
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Market capitalization EUR
154.7 (168.8) million on 31
March 2007
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Highest share price EUR
14.00 (14.84) and lowest
EUR 12.50 (10.80)
Principal shareholders on 13 April 2007
Shareholder
Nordstjernan AB
Ilmarinen Mutual Pension Insurance
Company
Varma Mutual Pension Insurance
Company
Veikko Laine Oy
Berling Capital Oy
OP Suomi Small Cap Investment Fund
Ulkomarkkinat Oy
Suutarinen Matti
Fondita Nordic Small Cap Inv. Fund
ABN Amro Finland Investment Fund
Lemarne Corporation Ltd
FIM Fenno Investment Fund
Renkkeli Oy
ABN Amro Small Cap Finland Inv. Fund
Veritas Pension Insurance Company
Number of
shares
% of shares
and votes
3 496 506
29.39
786 786
6.61
513 600
413 572
412 000
385 900
346 600
294 400
280 000
264 395
230 743
210 600
200 000
174 824
171 750
4.31
3.47
3.46
3.24
2.91
2.47
2.35
2.22
1.93
1.77
1.68
1.46
1.44
Exel Oyj Interim Report 1-3/2007
Outlook
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During 2007, the Group will concentrate on restoring the
profitability of the Exel Group
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The focus on the primary business segment of the Group, the
Industry Division, will be sharpened and a new business
organization will be introduced.
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The Group will benefit further from the acquisition of Pacific
Composites and the restructuring measures implemented at
enhancing efficiency and cutting costs
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Although the important antenna profile sales will continue to
slightly decline the overall market development for the
Industry Division is expected to remain positive
Exel Oyj Interim Report 1-3/2007
Outlook
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The Sport Division is improving its negative performance, but
due to a mild winter with low sales and prolonged sourcing
problems, the profitability will improve slowly
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The primary business risks in 2007 lie in market demand, both
in certain Industry and Sport segments, especially Nordic
Walking; in the effective sourcing as well as in a continued
shortage of carbon fibre
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For the full-year 2007, Exel expects the profit before taxes to
improve compared with the 2006 result before taxes and nonrecurring items