Exel Composites Oyj - Company Announcement

Exel Composites' new vision, strategy and long-term financial targets

EXEL COMPOSITES PLC     STOCK EXCHANGE RELEASE                   4.11.2014 at
8.50 a.m. 

EXEL COMPOSITES' NEW VISION, STRATEGY AND LONG-TERM FINANCIAL TARGETS

Exel Composites' Board of Directors has adopted a new vision, strategy and
long-term financial targets. Exel Composites' business is supported by
favorable trends driving market growth, especially in North Asia, North America
and Europe. 

Newly defined vision states: “Exel Composites is an agile, innovative global
composite company with world-class operations providing superior customer
experience”. Building on our strengths the Company targets to exceed the market
growth. The Company aims at being the global leader in the composite industry
based on long-term partnerships, continuous innovations and world-class
operations. 

Exel Composites' strategy

The Company's new growth strategy focuses on accelerating growth in China,
penetrating new applications and market segments, creating a true global
footprint and growing through new technologies. 

Growth in China will be accelerated by expanding the local sales network, R&D
and manufacturing capacity, and creating value offering for mid-segment
applications to the local market. 

Penetrating new applications, increasing vertical integration and packaging
applications to systems provide further growth opportunities. 

Global footprint will be expanded by increasing sales coverage and growing
supply and service to new market areas, including Americas. 

Growth in new technologies - composite manufacturing and further processing -
allows meeting customer demand better. 

The Group will continue to develop the world-class operations to differentiate
from competitors. Exel Composites' focus areas are on-time delivery, efficiency
and responsiveness, offering the right quality and stock availability. Exel
Composites focuses in its operations on safety and fulfilling strict
environmental and sustainability goals. The Group continues to empower
functions to drive synergies and opportunities globally, building regional
sales and R&D centers. 

New long-term financial targets

The new long-term financial targets reflect our new growth strategy. Exel
Composites targets to be a growing, profitable and capital efficient company.
Our new targets are: 

Growth: Turnover growth 2x average market growth
Profitability: Operating profit margin over 10 per cent of net sales
Capital efficiency: Return on capital employed over 20 per cent

Financial targets are considered over a business cycle. Acquisitions are
targeted to boost growth and to cover market and technology white spots.
Acquisitions will influence overall growth and profitability targets. 

Exel Composites aims to distribute some 40 per cent of net income in dividends,
as permitted by the financial structure and growth opportunities. 

The previous long-term financial targets over a business cycle were the
following: 
Growth: Average organic growth annually to exceed market growth of the industry
Operating profit: Operating profit over 10 per cent of net sales

Dividend policy: At least 40 per cent of net income distributed in dividends,
as permitted by the financial structure and growth opportunities. 



Vantaa, 4 November 2014



EXEL COMPOSITES PLC

Riku Kytömäki
President and CEO


Further information
Riku Kytömäki, President and CEO, tel. +358 50 511 8288, or email
riku.kytomaki@exelcomposites.com 
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or
email ilkka.silvanto@exelcomposites.com 

Distribution
NASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com



Exel Composites in brief
Exel Composites (www.exelcomposites.com) is a leading composite technology
company that designs, manufactures and markets composite products and solutions
for demanding applications. Exel Composites provides superior customer
experience through continuous innovation, world-class operations and long-term
partnerships. 

The core of the operations is based on own, internally developed composite
technology, product range based on it and strong market position in selected
segments with a strong quality and brand image. Profitable growth is pursued by
a relentless search for new applications and development in co-operation with
customers. The personnel's expertise and high level of technology play a major
role in Exel Composites' operations. 

Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX
Helsinki Ltd.