2023-10-02 08:00:00 CEST

2023-10-02 08:00:10 CEST


Exel Composites Oyj - Inside information

Exel Composites launches transformative strategy to capture profitable growth with composite solutions driven by sustainability needs


Exel Composites launches a new strategy to become a more integrated designer and
manufacturer of pultruded composite solutions for volume and customer-specific
applications. This transformation will enable Exel to grow and to create more
long-term value for stakeholders. Exel will also reorganize its operations to
improve performance and support growth. The actions to be taken will enable Exel
to achieve over EUR 200 million in annual revenue and double digit adjusted
operating profit margin within the next five years.

According to the new strategy, Exel will increase its efforts in large and fast
-growing energy transition and decarbonization applications driven by
sustainability needs. Increased focus will be placed on industries that have
strong growth potential with more standardized and higher volume product needs,
such as wind power, building, infrastructure and transportation.

To complement the growing volume applications business, Exel will further
develop its successful custom profiles business. In this business Exel will
continue to take advantage of its long R&D experience and strong product know
-how to help customers innovate and integrate the use of the composites in
existing and new applications. The custom profiles business will also function
as an important channel to funnel new opportunities to the volume business when
an application grows and demands higher manufacturing volumes.

To ensure increased customer-facing work and efficient operations, Exel will be
organized into two dedicated customer-centric business units, one concentrating
on volume and the other on custom solutions. Volume product customers Exel will
serve with dedicated account management teams and from factories that are highly
effective in running continuous production. Specialty and custom profile
customers Exel will serve through its regional sales network and from a global
network of factories optimized for tailored production. In both of these
business units composites solutions design and development capabilities will be
increased to ensure that customers can easily choose and use composites in their

The factory footprint will be organized to support the needs of the new business
units. In the new strategy, Exel will reassess its factory footprint and aim for
larger production units which are scalable, more efficient, and better
resourced. The redesigned factory footprint will offer customers the most
appropriate production network, while allowing Exel to focus and scale up its
operations as well as allowing investments in needed design and engineering
capabilities. As part of the process to reassess the factory footprint, Exel is
planning to start a strategic review in three factories to define their role and
necessity in the new operating model. More details and decisions from the
strategic review of the factory network will be announced as the planning

The new operating model with two distinct business units will be implemented
from the beginning of 2024.

“In our new strategy, we have identified several attractive, high potential
growth industries, with paths for Exel to capture them. We believe that the use
of composite solutions will increase in the future. This strengthens our trust
in our purpose to solve challenges and save resources with composites. At the
same time, we see that the industry is in transition. Customers are looking for
different technical and commercial solutions. Exel needs to drive positive
change through its own operations to prepare for future growth and to ensure it
can satisfy the changing expectations of customers going forward. With our
refocused strategy, emphasizing sustainability, efficiency, and close
cooperation with customers, we can be an important partner to them in the
journey to meet and exceed mutual targets,” says President and CEO Paul

Invitation to press conference today at 13:00 EET

Exel invites investors, analysts and media to an event to be held online today
on Monday 2 October 2023 at 13:00 EET to discuss today's announcement. The event
will be hosted by President and CEO Paul Sohlberg and CFO Mikko Rummukainen.

The event can be followed live via the link: Click here to join the
meeting (https://teams.microsoft.com/l/meetup

The link will be also available on Exel's website: investors.exelcomposites.com

A recording of the event will be available at investors.exelcomposites.com

Capital Markets Day

Exel will arrange a hybrid Capital Markets Day on 13 November 2023 in Helsinki
to provide further details on strategy and to engage with the management.

For further information, please contact:

Sanna Ahvenniemi, Head of Investor Relations

tel. +358 40864 3000


Exel Composites in brief

At Exel Composites, we use over 60 years' experience to solve challenges and
help customers save resources. Our forward-thinking composite solutions made
with continuous manufacturing technologies serve customers in a wide range of
industries around the world. You can find our products used in applications from
wind power and transportation to building and infrastructure.

Our collaborative approach and global footprint set us apart from our
competition. We use our expertise to help customers reduce weight, improve
performance and energy efficiency and decrease total lifetime costs. We want to
be the first choice for sustainable composite solutions globally.

Headquartered in Finland, Exel Composites employs approximately 650 forward
-thinking professionals around the world and is listed on Nasdaq Helsinki. To
find out more about our offering and company please visit

Exel Composites Plc