Transcript Document
Exel Oyj Strategic acquisition in pultrusion: Pacific Composites 27.2.2006 Content of the presentation • • • • • • • Company profile Pacific Composites’ factories Technology & markets Profiles & applications Pacific Composites’ financials Impact on Exel’s financials Impact on Exel’s operations 1. Company profile • Largest pultruder in Australia, Pacific and UK • Pioneer in pultrusion in Australia, est. on the 1960’s, a subsidiary of the publicly listed Lemarne Corporation Limited • Offices & manufacturing sites – Australia, in Melbourne and Brisbane – UK, in Runcorn and Clacton, through acquisition of Fibreforce Composites Ltd, the largest pultruder in UK, in 1992 – China, in Nanjing, started in 2005 2. Exel offices and sites Shenzhen, China, 2006 Piteå, Sweden Kivara Mäntyharju Voerde, Germany Oudenaarde, Belgium Vantaa Rohrdorf, Germany Munguia, Spain Düsseldorf, Germany Bekaert subcontracting Kapfenberg, Austria Sales office and production unit Sales office 2. Pacific Composites’ sites 3.Technology & markets •Technology base: pultrusion process and prepreg moulding •Main business areas/markets – – – – – – – Aerospace & Military Transportation Telecommunication Building & Construction Mining Marine Wind Energy 4. Profiles & applications (examples) •Conduit rods used in telecom •Cable ladders •Handrails •Components used in wind blades •Telescopic tubing •Antenna radomes •Specialised piping/tubes Profiles & Applications Profiles & Applications Profiles & Applications 5. Pacific Composites’ financials • Net sales from July 2004 to June 2005 were EUR 19.8 million • Net sales from July 2005 to December 2005 were EUR 12.0 million, up 25% from H2/2004 • Profit before taxes 2004/2005 was EUR 1.8 million, profit before taxes H2/2005 was EUR 1.4 million • 150 employees • The price of the acquisition is EUR 17.5 million in cash plus 230 thousand new Exel shares for the value of EUR 2.8 million (authorization given in AGM 2005) 6. Impact on Exel’s financials • Preliminary pro forma figures 2005 – Net sales 2005 EUR 114 million – EBT 2005 EUR 14.5 million – 12.7% of net sales • Pacific Composites’ operations will be joined into Exel Group as of 1st March 2006 • Expected EBIT impact of EUR 3.0 million on Exel Group level after the restructuring process in 2006 • In the long run in line with Exel’s normal growth and profitability targets 7. Impact on Exel’s business operations • Major strategic step to expand Exel’s operations in Asian market and to serve our customers on a world-wide basis • The investment project of building an own factory in Shenzhen is now postponed • Exel’s core business in future will be its present Industry Division with high composite technology, i.e. fibreglass and carbon-reinforced applications and profiles • Exel now being an undisputable global market leader in pultrusion technology • Better possibilities to continue with the consolidation process in the pultrusion market