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2010-02-19 08:00:00 CET 2010-02-19 08:00:03 CET REGULATED INFORMATION Exel Composites Oyj - Financial Statement ReleaseExel Composites Plc's financial statements release 2009EXEL COMPOSITES PLC FINANCIAL STATEMENTS RELEASE 19.2.2010 at 9.00 1 (17) EXEL COMPOSITES PLC'S FINANCIAL STATEMENTS RELEASE 2009 January-December 2009 highlights and outlook for 2010 - Net sales from continuing operations for the financial year decreased to EUR 70.0 (84.9) million, down by 17.6 per cent on the previous year - Operating profit from continuing operations for the financial year was EUR +8.0 million including net reversal of the restructuring provisions and other non-recurring items of EUR +1.2 million (EUR +8.6 million including EUR -0.7 million non-recurring items), or 11.4 (10.1) per cent of net sales - Net operative cash flow was positive at EUR +14.2 (+11.1) million - Fully diluted earnings per share for the full year were EUR 0.56 (-0.25), of which continuing operations EUR 0.50 (0.34) - The Board of Directors proposes that a dividend of EUR 0.25 (0.00) be paid for the financial year 2009 - Due to the market uncertainty and poor visibility, Exel will not give any profit guidance October-December 2009 highlights - Net sales from continuing operations in the fourth quarter of 2009 were EUR 16.2 (20.5) million - Operating profit from continuing operations in the fourth quarter of 2009 was EUR +2.4 million including net reversal of the restructuring provisions of EUR +0.7 million (EUR +2.2 million), or 14.5 (10.6) per cent of net sales - Fully diluted earnings per share were EUR 0.18 (-0.01), of which continuing operations accounted for EUR 0.15 (0.05) Vesa Korpimies, President and CEO: “The recession continued to impact the pultrusion markets in 2009. Sales decreased in almost all our geographical markets. Exel took robust actions to deal with the economic down-turn. The main objective was to protect the financial fundamentals and the business in order to ensure stability. We reinforced the focus on the core composite business and divested Exel Sports Brands' Floorball business in March 2009. We prioritized cash flow and implemented measures to improve cash management and reduce working capital, as well as to prioritize capital spending. This resulted in a strong cash flow of EUR 14.2 million. The net debt of the Group was reduced from EUR 20.7 million to EUR 6.1 million and gearing was improved from 123.9 per cent to 23.7 per cent. We initiated actions to cut costs and to improve efficiency resulting in a substantial reduction of annual fixed costs. We invested in sales activities in order to protect the top line. Total earnings per share improved significantly in 2009. Earnings per share for continuing operations improved to EUR 0.50 (0.34) and for discontinued operations to EUR 0.06 (-0.59). The major contributors were the restructuring of the Group including the divestment of Exel Sports Brands and favorable foreign exchange rate development. Return on investment improved from 0.0 per cent to 20.9 per cent. Small signs of market recovery could be seen during the latter part of the year. Sales to general industries, especially defense, improved due to new applications. New, innovative applications were developed also in the building, construction and infrastructure market. We also see many interesting opportunities relating to new energy regulations. Furthermore, long-term agreements were signed in the electrical industry. We maintain a cautious stance on the world economy and expect the challenging market environment to continue also in 2010. We will continue our focus on sales and on developing new applications with our customers. Economic uncertainty calls for prudent house-keeping, hence productivity improvements and cost efficiency remain our priorities also in 2010. We have a strong financial position and we are well prepared to take advantage of the challenging business environment and the growth opportunities as the markets gradually recover.” CONSOLIDATED KEY FIGURES, EUR million -------------------------------------------------------------------------------- | | 1.10. - | 1.10. - | Change | 1.1. - | 1.1. - | Change, | | | 31.12. | 31.12. | % | 31.12. | 31.12. | % | | | 2009 | 2008 | | 2009 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, | 16.2 | 20.5 | -20.6 | 70.0 | 84.9 | -17.6 | | continuing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | Operating | 2.4 | 2.2 | 8.9 | 8.0 | 8.6 | -7.0 | | profit, | | | | | | | | continuing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | % of net | 14.5 | 10.6 | | 11.4 | 10.1 | | | sales | | | | | | | -------------------------------------------------------------------------------- | Profit for | 1.8 | 0.6 | 195.8 | 5.9 | 4.0 | 47.3 | | the period, | | | | | | | | continuing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders | 25.6 | 16.7 | 53.4 | 25.6 | 16.7 | 53.4 | | ' equity | | | | | | | -------------------------------------------------------------------------------- | Net | 6.1 | 20.7 | -70.6 | 6.1 | 20.7 | -70.6 | | interest-bea | | | | | | | | ring | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Capital | 44.1 | 45.4 | -2.8 | 44.1 | 45.4 | -2.8 | | employed | | | | | | | -------------------------------------------------------------------------------- | Return on | 36.3 | -3.0 | | 31.3 | -14.7 | | | equity, % | | | | | | | -------------------------------------------------------------------------------- | Return on | 29.8 | 13.4 | | 20.9 | 0.0 | | | capital | | | | | | | | employed, % | | | | | | | -------------------------------------------------------------------------------- | Equity | 44.6 | 28.2 | | 44.6 | 28.2 | | | ratio, % | | | | | | | -------------------------------------------------------------------------------- | Net gearing, | 23.7 | 123.9 | | 23.7 | 123.9 | | | % | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | 0.18 | -0.01 | | 0.56 | -0.25 | | | share, EUR | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.18 | -0.01 | | 0.56 | -0.25 | | | share, | | | | | | | | diluted, EUR | | | | | | | -------------------------------------------------------------------------------- | Equity per | 2.15 | 1.40 | | 2.15 | 1.40 | | | share, EUR | | | | | | | -------------------------------------------------------------------------------- IFRS REPORTING This financial statements bulletin has been prepared in accordance with the recognition and measurement principles of IFRS, which are the same as in the 2008 financial statements. The Company has adopted the following mandatory IAS and IFRS standards that entered into force on 1 January 2009: - IFRS 8 Operating segments. The standard replaces IAS 14 Segment Reporting. Exel Composites reports only with one segment, Exel Composites. Exel Sports Brands segment is reported as discontinued operations. - IAS 1 Presentation of Financial Statements. The standard separates owner and non-owner changes in equity. The Group has applied this standard as of 1 January 2009. -IAS 23 Borrowing costs. The revised standard requires capitalization of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. The Group has applied this standard as of 1 January 2009. - IAS 32 Financial Instruments. Presentation and IAS 1 Presentation of Financial Statements - Puttable Financial Instruments and Obligations Arising on Liquidation. According to the revised standard requires entities to classify puttable financial instruments and instruments, or components of instruments that impose on the entity an obligation to deliver to another party a pro rata share of net assets of the entity only on liquidation as equity, provided the financial instruments have particular features and meet specific conditions. The Group has applied this standard as of 1 January 2009. 1 OCTOBER - 31 DECEMBER 2009 FINANCIAL PERFORMANCE Net sales from continuing operations decreased in the last quarter of 2009 by 20.6 per cent to EUR 16.2 (20.5) million. Operating profit from continuing operations in the fourth quarter of 2009 was EUR +2.4 million including net reversal of the restructuring provisions of EUR +0.7 million (EUR +2.2 million), or 14.5 (10.6) per cent of net sales. FINANCIAL YEAR 2009 FINANCIAL PERFORMANCE Net sales from continuing operations for the Exel Composites Group decreased on the previous year, ending the year at EUR 70.0 (84.9) million. Sales in almost all geographical markets decreased in 2009, and the order intake was weak. Especially the machine industry, sports and leisure, paper industry and telecommunication applications were affected. Sales developed relatively better in Europe compared to Asia, which suffered from tough competition especially in China. The Company initiated measures to reduce fixed costs, to improve productivity and to increase sales activities. Despite a decline in sales, the operating profit as a percentage of net sales from continuing operations was improved to 11.4 (10.1) percent. However, Exel Composites' operating profit from continuing operations for the financial period decreased to EUR 8.0 million (including net reversal of the restructuring provisions and non-recurring items of EUR +1.2 million) compared to EUR 8.6 million (including EUR -0.7 million non-recurring items). The Group's net financial expenses from continuing operations in 2009 decreased to EUR 0.0 (3.0) million. The main reasons for the improvement were lower interest rates, lower debt and favorable currency exchange rates, especially the Australian dollar. The Group's profit before taxes from continuing operations was EUR 8.0 (5.6) million and profit after taxes EUR 5.9 (4.0) million. Exel Composites initiated a restructuring program to increase the focus on the core industrial activities. The Exel Sports Brands floorball business was divested through an asset deal and the transaction also included a licensing agreement to secure the continued presence and distribution of Exel branded floorball products. The operating profit of discontinued operations improved to EUR 1.1 (-9.0) million. Due to the comprehensive savings and restructuring programs, the total earnings per share improved. Earnings per share for continuing operations improved to EUR 0.50 (0.34) and for discontinued operations to EUR 0.06 (-0.59). Fully diluted total earnings per share improved from EUR -0.25 in 2008 to EUR 0.56 in 2009. The return on capital employed in 2009 increased to 20.9 (0.0) per cent, due to improved operating margins and higher turnover of capital employed. BALANCE SHEET AND FINANCIAL POSITION Exel Composites maintained a strong emphasis on cash flow and improved the financial position in 2009. Reinforced measures were taken to reduce operative working capital and cash flow from business operations was positive at EUR 14.2 (11.1) million. Cash flow before financing, but after capital expenditure, amounted to EUR 14.4 (9.4) million. Net interest-bearing liabilities were reduced by EUR 14.6 million to EUR 6.1 (20.7) million, and the net gearing ratio improved to 23.7 (123.9) per cent. Capital expenditure was financed with cash flow from business operations. At the end of the financial year, the Group's liquid assets stood at EUR 12.6 (8.0) million. The Group's consolidated total assets at the end of the financial year were EUR 57.3 (59.3) million. Equity at the end of the financial year was EUR 25.6 (16.7) million and equity ratio 44.6 (28.2) per cent. Interest-bearing liabilities amounted to EUR 18.7 (28.7) million, of which short-term liabilities accounted for EUR 2.3 (6.6) million. The Company paid no dividends during the financial year. CAPITAL EXPENDITURE AND DEPRECIATION The capital expenditure on fixed assets amounted to EUR 1.4 (1.8) million. Total depreciation of non-current assets during the year under review amounted to EUR 3.0 (4.0 including write-downs amounting to EUR 0.3 million) million. PERSONNEL The number of Exel Composites Group employees on 31 December 2009 was 419 (472), of whom 183 (208) worked in Finland and 236 (264) in other countries. The average number of personnel during the financial year was 436 (526). The decrease both in Finland and abroad is due to the rationalization actions in the Finnish, British and Chinese units and the divestments of Exel Sports Brands' Outdoor and Floorball businesses. The co-determination negotiations concerning the Group's Finnish units were concluded on 31 July 2009. As a result of negotiations, the amount of permanent employment contracts to be terminated was 19. In addition, 7 temporary employment contracts for non-salaried employees and 1 for salaried employees came to termination at the end of their duration. Furthermore, the job descriptions, tasks and essential terms of the employment contracts of certain both non-salaried and salaried employees were altered to correspond to the new situation. In addition, Exel issued a warning of temporary layoffs covering all the employees of the Finnish units. The warning of temporary layoffs is valid until the end of 2010. Actions to adjust Exel Composites' cost base to lower sales continued also in the units outside of Finland. CHANGES IN THE GROUP STRUCTURE Divestment of Exel Sports Brands In March 2009, Exel signed an agreement to sell Exel Sports Brands' Floorball business to Cape Nordic Oy, a sports and fashion distributor based in Finland. Cape Nordic took over the Floorball business and acquired the inventory and order backlog related to the Floorball business through an asset deal. The transaction also included a long-term licensing agreement related to the use of the Exel brand together with other brands related to the Floorball business. The employees of the Floorball business in Finland (9 persons) and Sweden (5 persons) were transferred to Cape Nordic as existing employees. The divestment of the Floorball business completed Exel Composites' program to reinforce focus on the core industrial activities. On 31 December 2009 the merger of Exel Composites Plc and Exel Sports Oy was entered in the Trade Register. Exel Sports Oy's assets and liabilities were transferred to the parent company Exel Composites Plc without liquidation. No merger consideration was paid for the merger, as the parent company owned all the shares of the merging company. The merger caused no amendments to Exel Composites Plc's Articles of Association. The reason for the merger was the clarification of the company structure. CHANGES IN GROUP MANAGEMENT Mr. Grant Pearce, Managing Director of Exel Composites Australia and member of Exel Composites Plc's Management Group resigned in September 2009. Mr. Lasse Orre was appointed Senior Vice President Sales and member of Exel Composites Plc's Management Group as of 1 February 2010. SHARES AND SHARE CAPITAL Exel's share is listed in the Small Cap segment of the NASDAQ OMX Helsinki Ltd. in the Materials sector. The Annual General Meeting of Exel Oyj held on 16 April 2009 approved the Board's proposal not to distribute a dividend for the financial year 2008. The Annual General Meeting decided to amend Section 1 of the Articles of Association regarding the Company Name and Domicile and changed the Company name to Exel Composites Oyj in Finnish and Exel Composites Plc in English. The AGM also decided to amend Section 10 of the Articles of Association regarding Invitations to Meetings to comply with the Finnish Corporate Governance Code for Listed Companies. The Annual General Meeting authorized the Board of Directors to acquire the Company's own shares by using unrestricted equity. The maximum amount to be acquired is 600,000 shares. The authorization is valid until 16 April 2010. The Annual General Meeting authorized the Board of Directors to issue a maximum of 2,400,000 new shares and convey a maximum of 600,000 own shares. By virtue of the authorization, the Board of Directors also has the right to grant option rights, convertible bonds and/or special rights referred to in Chapter 10, Section 1 of the Companies Act. The authorization is valid until 16 April 2010. Exel Composites did not hold any of its own shares during the period of review. The share capital has remained unchanged during the financial year and is 11,896,843 shares each having the counter-book value of EUR 0.18. There is only one class of shares and all shares are freely assignable under Finnish law. Share performance and turnover During the financial year the highest share price quoted was EUR 6.20 (12.20) and the lowest EUR 2.37 (2.41). At the end of the year, the share price was EUR 5.39 (2.72). The average share price during the financial year was EUR 4.08 (5.92). A total of 3,522,974 (1,654,322) shares were traded during the year, which represents 29.6 (13.9) per cent of the average number of shares. On 31 December 2009, Exel's market capitalization was EUR 64.1 (32.6) million. SHAREHOLDERS AND DISCLOSURES On 31 December 2009, 0.6 per cent of the shares and votes of Exel were owned or controlled, directly or indirectly by the President and CEO and the members of the Board. The Company's largest shareholder is the Swedish investment company Nordstjernan AB, which owned 29.4 per cent of shares at the end of 2009. Other major shareholders included Ilmarinen Mutual Pension Insurance Company (5.8%) and Veikko Laine Oy (5.2%). At the end of the year, the Company had a total of 1,785 (1,673) shareholders. On 8 January 2009, Exel received a flagging announcement from Veikko Laine Oy according to which the holdings of Veikko Laine Oy had exceeded 1/20 of the voting rights and share capital in Exel Plc. On 4 December 2009, Exel received a flagging announcement from Evli Group according to which the holdings of Evli Group had exceeded 1/20 of the voting rights and share capital in Exel Composites Plc. CORPORATE GOVERNANCE Exel Composites issues a Corporate Governance Statement for the financial year 2009. The Corporate Governance Statement has been composed in accordance with recommendation 51 of the new Corporate Governance Code and Chapter 2, Section 6 of the Finnish Securities Market Act. The Corporate Governance Statement is issued separately from the Board of Directors' report. Further information concerning the corporate governance matters is available at the Group's website at www.exelcomposites.com. BOARD OF DIRECTORS AND AUDITORS On 16 April 2009, the Annual General Meeting appointed Peter Hofvenstam, Göran Jönsson, Vesa Kainu and Heikki Mairinoja to continue on the Board of Directors. Reima Kerttula was appointed as new member of the Board. Peter Hofvenstam was re-elected Chairman of the Board. The Board of Directors convened 10 times in 2009 and the average attendance rate at these meetings was 98 per cent. The fees paid to the Board of Directors totaled EUR 140 thousand in 2009. The Board of Directors has reviewed the independence of Board members in accordance with Recommendation 15 of the Corporate Governance Code. Vesa Kainu, Reima Kerttula and Heikki Mairinoja are independent Board members. Peter Hofvenstam is considered as independent from the Company, but non-independent from a major shareholder, since he is the Vice President of Nordstjernan AB. Göran Jönsson is considered as non-independent from the Company as former President and CEO of the company. The Board was considered to comply with the Corporate Governance independency rules. The Annual General Meeting of Exel Composites has elected a Shareholders' Nomination Committee, which nominates candidates to the Annual General Meeting for election as Board members and proposes the fees to be paid to the Board members. The Nomination Committee included the Chairman and persons nominated by the four largest shareholders as of 1 November 2009. In 2009 the Nomination Committee comprised Tomas Billing as Chairman (Nordstjernan AB), Mikko Mursula (Ilmarinen Mutual Pension Insurance Company) and Pertti Laine (Veikko Laine Oy). The committee met twice in 2009. Ernst & Young, Authorized Public Accountants, with Eija Niemi-Nikkola, APA, as principal auditor, were elected to serve as company auditor in the AGM in 2009. The fees paid to the auditors totaled EUR 186 (188) thousand in 2009. MAJOR NEAR-TERM RISKS AND UNCERTAINTIES The most significant near-term business risks are related the development of general economic development and especially to market demand in certain market segments. The market sentiment is still utmost vulnerable and 2010 still seems challenging. The raw material prices, energy cost and other cost increases may put pressure on profitability. Currency rate changes, especially strengthening USD and price competition may also have a negative effect on the result. The availability of financing may weaken the demand in Exel's market and increases the credit loss risks. Disturbance in the labor market may also have an impact on deliveries. ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IRFS) All IFRS's in force on 31 December 2009 that are applicable to Exel Composites' business operations, including all SIC- and IFRIC-interpretations thereon, have been complied with when preparing year 2009 and comparable year 2008 figures. International financial reporting standards, referred to in the Finnish Accounting Act and in ordinances issued based on the provisions of this Act, refer to the standards and their interpretations adopted in accordance with the procedure laid down in regulation (EC) No 1606/2002 of the EU. The notes to the consolidated financial statements conform also with the Finnish accounting and company legislation. EVENTS AFTER THE REPORTING PERIOD Exel sold its Floorball business to Cape Nordic in March 2009. The transaction included a long-term licensing agreement related to the use of the Exel brand together with other floorball brands. Exel terminated the license agreement with Cape Nordic in January 2010, and entered into a new license agreement with EF Team Sports Oy, who continued the Floorball business with the brands in question as from 30 January 2010. MARKET OUTLOOK FOR 2010 The Group has a cautious stance on the economy for 2010 and expects the market conditions to remain challenging. Exel Composites is prepared to take further prompt actions, but also to capture opportunities due to the economic down-turn. Even though the short-term market outlook is challenging, the long-term growth opportunities remain favorable. EXEL COMPOSITES' OUTLOOK FOR 2010 Due to the market uncertainty and poor visibility, Exel will not give any profit guidance. BOARD PROPOSAL FOR DIVIDEND DISTRIBUTION Exel's financial goals include distributing dividends equal to at least 40 per cent of the profit for the financial year unless otherwise required by growth and liquidity. On 31 December 2009 Exel Composites Plc's distributable funds totaled EUR 18,043 thousand, of which profit for the financial period accounted for EUR 3,417 thousand. The Board proposes to the Annual General Meeting that a dividend of EUR 0.25 (0.00) per share be paid for the 2009 financial year. As a basis for its proposal, the Board of Directors has made an assessment of the Group's financial position and ability to meet its commitments, as well as the Group's outlook and investment requirements. The Board considers the proposed dividend well-balanced given the prospects, the capital requirements and the risks of the Group's business activities. The proposed record date for dividends is 7 April 2010. If the Annual General Meeting approves the Board's proposal, it is estimated that dividend payments will commence on 14 April 2010. CONSOLIDATED COMPREHENSIVE INCOME STATEMENT -------------------------------------------------------------------------------- | EUR | 1.10. - | 1.10.- | Change, | 1.1. - | 1.1. - | Change, | | thousand | 31.12. | 31.12. | % | 31.12. | 31.1. | % | | | 2009 | 2008 | | 2009 | 2008 | | -------------------------------------------------------------------------------- | Continuing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | Net sales | 16248 | 20454 | -20.6 | 70005 | 84921 | -17.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Materials | -6393 | -8822 | 27.5 | -28430 | -34576 | 17.8 | | and | | | | | | | | services | | | | | | | -------------------------------------------------------------------------------- | Employee | -4071 | -4282 | 4.9 | -17994 | -20650 | 12.9 | | benefit | | | | | | | | expenses | | | | | | | -------------------------------------------------------------------------------- | Depreciati- | -712 | -819 | 13.1 | -3028 | -3967 | 23.7 | | on and | | | | | | | | impairment | | | | | | | -------------------------------------------------------------------------------- | Other | -3080 | -4591 | 32.9 | -13859 | -17417 | 20.4 | | operating | | | | | | | | expenses | | | | | | | -------------------------------------------------------------------------------- | Other | 367 | 229 | 60.3 | 1296 | 281 | 361.2 | | operating | | | | | | | | income | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | 2360 | 2168 | 8.9 | 7990 | 8593 | -7.0 | | profit | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net | 30 | -1145 | 102.6 | -20 | -3003 | 99.3 | | financial | | | | | | | | items | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | 2390 | 1023 | 133.6 | 7970 | 5590 | 42.6 | | before tax | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income | -550 | -401 | -37.2 | -2025 | -1554 | -30.3 | | taxes | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss | 1840 | 622 | 195.8 | 5945 | 4036 | 47.3 | | for the | | | | | | | | period from | | | | | | | | continuing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Discon-tinu | | | | | | | | ed | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | Profit/loss | 351 | -755 | 146.5 | 661 | -6992 | 109.5 | | for the | | | | | | | | period from | | | | | | | | disconti-nu | | | | | | | | ing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss | 2191 | -133 | 1747.4 | 6606 | -2956 | 323.5 | | for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | | | | | | | | comprehensi | | | | | | | | ve income: | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Exchange | 672 | -1481 | -145.4 | 2293 | -1513 | 251.6 | | differences | | | | | | | | on | | | | | | | | translating | | | | | | | | foreign | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | Income tax | 0 | 0 | 0 | 0 | 0 | 0 | | relating to | | | | | | | | components | | | | | | | | of other | | | | | | | | comprehen-s | | | | | | | | ive income | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | 672 | -1481 | -145.4 | 2293 | -1513 | 251.6 | | comprehen-s | | | | | | | | ive income, | | | | | | | | net of tax | | | | | | | -------------------------------------------------------------------------------- | Total | 2864 | -1614 | 277.4 | 8900 | -4469 | 299.1 | | comprehensi | | | | | | | | ve income | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/loss | | | | | | | | attributa-b | | | | | | | | le to: | | | | | | | -------------------------------------------------------------------------------- | Equity | 2191 | -133 | 1747.4 | 6606 | -2956 | 323.5 | | holders of | | | | | | | | the parent | | | | | | | | company | | | | | | | -------------------------------------------------------------------------------- | Non-control | 0 | 0 | | 0 | 0 | | | linginteres | | | | | | | | t | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehen-s | | | | | | | | ive income | | | | | | | -------------------------------------------------------------------------------- | attribu-tab | | | | | | | | le to: | | | | | | | -------------------------------------------------------------------------------- | Equity | 2864 | -1614 | 277.4 | 8900 | -4469 | 299.1 | | holders of | | | | | | | | the parent | | | | | | | | company | | | | | | | -------------------------------------------------------------------------------- | Non-control | 0 | 0 | | 0 | 0 | | | ling | | | | | | | | interest | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings | | | | | | | | per share, | | | | | | | | diluted and | | | | | | | | undiluted, | | | | | | | | EUR | | | | | | | -------------------------------------------------------------------------------- | From | 0.15 | 0.05 | | 0.50 | 0.34 | | | continuing | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | From | 0.03 | -0.06 | | 0.06 | -0.59 | | | disconti-nu | | | | | | | | ed | | | | | | | | operations | | | | | | | -------------------------------------------------------------------------------- | Total | 0.18 | -0.01 | | 0.56 | -0.25 | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | EUR thousand | 31.12.2009 | 31.12.2008 | Change | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Goodwill | 9,968 | 8,362 | 1,606 | -------------------------------------------------------------------------------- | Other intangible assets | 2,460 | 2,514 | -54 | -------------------------------------------------------------------------------- | Tangible assets | 10,835 | 11,823 | -988 | -------------------------------------------------------------------------------- | Deferred tax assets | 2,315 | 3,207 | -892 | -------------------------------------------------------------------------------- | Other non-current assets | 64 | 68 | -4 | -------------------------------------------------------------------------------- | Non-current assets total | 25,642 | 25,975 | -332 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 8,782 | 12,408 | -3,626 | -------------------------------------------------------------------------------- | Trade and other receivables | 10,281 | 12,856 | -2,575 | -------------------------------------------------------------------------------- | Other liquid assets | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Cash at bank and in hand | 12,597 | 8,035 | 4,562 | -------------------------------------------------------------------------------- | Current assets total | 31,661 | 33,300 | -1,639 | -------------------------------------------------------------------------------- | Non-current assets held for | 0 | 0 | 0 | | sale | | | | -------------------------------------------------------------------------------- | Total assets | 57,303 | 59,275 | -1,972 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | Shareholders´ equity | | | | -------------------------------------------------------------------------------- | Share capital | 2,141 | 2,141 | 0 | -------------------------------------------------------------------------------- | Share premium reserve | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Other reserves | 37 | 5 | 32 | -------------------------------------------------------------------------------- | Invested unrestricted equity | 8,488 | 8,488 | 0 | | fund | | | | -------------------------------------------------------------------------------- | Translation differences | -100 | -2,393 | 2,293 | -------------------------------------------------------------------------------- | Retained earnings | 8,406 | 11,395 | -2,989 | -------------------------------------------------------------------------------- | Profit for the period | 6,607 | -2,956 | 9,563 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity attributable to | 25,580 | 16,680 | 8,899 | | equity holders of the parent | | | | | company | | | | -------------------------------------------------------------------------------- | Non-controlling interest | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total equity | 25,580 | 16,680 | 8,900 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 16,346 | 22,057 | -5,711 | -------------------------------------------------------------------------------- | Interest-free liabilities | 330 | 348 | -18 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 248 | 353 | -105 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 2,324 | 6,648 | -4,324 | -------------------------------------------------------------------------------- | Trade and other non-current | 12,476 | 13,188 | -712 | | liabilities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 31,722 | 42,594 | -10,872 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and liabilities | 57,303 | 59,275 | -1,972 | -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -------------------------------------------------------------------------------- | EUR | Share | Share | Othe | Invest | Transl | Retain | Non-co | Total | | thousand | Capit | Premi | r | ed | ation | ed | ntroll | | | | al | um | Rese | Unrest | Differ | Earnin | ing | | | | | Reser | rves | ricted | ences | gs | intere | | | | | ve | | Equity | | | st | | | | | | | Fund | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance | 2,141 | 8,488 | 5 | 0 | -880 | 13,780 | 0 | 23,533 | | at 1 | | | | | | | | | | January | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehe | 0 | 0 | 0 | 0 | -1,513 | -2,956 | 0 | -4,469 | | n-sive | | | | | | | | | | result | | | | | | | | | -------------------------------------------------------------------------------- | Other | 0 | -8,48 | 0 | 8,488 | 0 | -5 | 0 | -5 | | items | | 8 | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | | -2,379 | | -2,379 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance | 2,141 | 0 | 5 | 8,488 | -2,393 | 8,440 | 0 | 16,680 | | at 31 | | | | | | | | | | December | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance | 2,141 | 0 | 5 | 8,488 | -2,393 | 8,440 | 0 | 16,680 | | at 1st | | | | | | | | | | January | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehe | 0 | 0 | 0 | 0 | 2,293 | 6,607 | 0 | 8,900 | | n-sive | | | | | | | | | | result | | | | | | | | | -------------------------------------------------------------------------------- | Other | 0 | 0 | 33 | 0 | 0 | -33 | 0 | 0 | | items | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | | 0 | | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance | 2,141 | 0 | 37 | 8,488 | -100 | 15,014 | 0 | 25,580 | | at 31 | | | | | | | | | | December | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | EUR thousand | 1.1. - | 1.1. - | Change | | | 31.12. | 31.12. | | | | 2009 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Operating Activities | | | -------------------------------------------------------------------------------- | Profit for the period | 6,607 | -2,956 | 9,563 | -------------------------------------------------------------------------------- | Adjustments | 4,829 | 6,182 | -1,353 | -------------------------------------------------------------------------------- | Change in working capital | 2,309 | 11,815 | -9,506 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow Generated by Operations | 13,745 | 15,041 | -1,296 | -------------------------------------------------------------------------------- | Interest paid | -1,015 | -1,876 | 861 | -------------------------------------------------------------------------------- | Interest received | 292 | 259 | 33 | -------------------------------------------------------------------------------- | Other financial items | 770 | -763 | 1,533 | -------------------------------------------------------------------------------- | Income taxes paid | 427 | -1,572 | 1,999 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net Cash Flow from Operating | 14,219 | 11,089 | 3.130 | | Activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Investing Activities | | | -------------------------------------------------------------------------------- | Acquisitions | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Disposal of business | 1,225 | 25 | 1,200 | -------------------------------------------------------------------------------- | Capital expenditure | -1,440 | -1,765 | 325 | -------------------------------------------------------------------------------- | Proceeds from sale of fixed assets | 410 | 90 | 320 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Investing | 195 | -1,650 | 1,845 | | Activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow from Financing | | | | -------------------------------------------------------------------------------- | Share issue | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Proceeds from long-term borrowings | 0 | 10,000 | -10,000 | -------------------------------------------------------------------------------- | Instalments of long-term | -7,623 | -8,973 | 1,350 | | borrowings | | | | -------------------------------------------------------------------------------- | Change in short-term loans | -1,823 | -4,563 | 2,740 | -------------------------------------------------------------------------------- | Instalments of finance lease | -406 | -390 | -16 | | liabilities | | | | -------------------------------------------------------------------------------- | Dividends paid | 0 | -2,379 | 2,379 | -------------------------------------------------------------------------------- | Net Cash Flow from Financing | -9,852 | -6,305 | -3,547 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in Liquid Funds | 4,562 | 3,134 | 1,428 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds in the beginning of | 8,035 | 4,901 | 3,134 | | period | | | | -------------------------------------------------------------------------------- | Change in liquid funds | 4,562 | 3,134 | 1,428 | -------------------------------------------------------------------------------- | Liquid funds at the end of period | 12,597 | 8,035 | 4,562 | -------------------------------------------------------------------------------- QUARTERLY KEY FIGURES -------------------------------------------------------------------------------- | EUR | IV/ | III/ | II/ | I/ | IV/ | III/ | II/ | I/ | | thousand | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing | | | | | | | | | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Net sales | 16248 | 15942 | 19285 | 18530 | 20454 | 21111 | 22449 | 20907 | -------------------------------------------------------------------------------- | Materials | -6393 | -6702 | -7988 | -7347 | -8822 | -9008 | -8559 | -8186 | | and | | | | | | | | | | services | | | | | | | | | -------------------------------------------------------------------------------- | Employee | -4071 | -4332 | -4763 | -4827 | -4282 | -5252 | -5393 | -5723 | | benefit | | | | | | | | | | expenses | | | | | | | | | -------------------------------------------------------------------------------- | Depreciati | -712 | -748 | -748 | -820 | -819 | -884 | -1362 | -901 | | on and | | | | | | | | | | impairment | | | | | | | | | -------------------------------------------------------------------------------- | Operating | -3080 | -3101 | -3843 | -3836 | -4591 | -4193 | -5220 | -3413 | | expenses | | | | | | | | | -------------------------------------------------------------------------------- | Other | 367 | 180 | 448 | 300 | 229 | 11 | 32 | 10 | | operating | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | 2360 | 1239 | 2390 | 2001 | 2168 | 1785 | 1947 | 2694 | | profit | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net | 30 | -288 | 185 | 53 | -1145 | -1328 | 606 | -1137 | | financial | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit | 2390 | 951 | 2575 | 2054 | 1023 | 456 | 2553 | 1558 | | before | | | | | | | | | | taxes | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income | -550 | -252 | -693 | -530 | -401 | -88 | -655 | -410 | | taxes | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/los | 1840 | 699 | 1882 | 1524 | 622 | 368 | 1898 | 1148 | | s for the | | | | | | | | | | period | | | | | | | | | | from | | | | | | | | | | continuing | | | | | | | | | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Profit/los | 351 | 97 | 80 | 133 | -755 | 482 | -5478 | -1241 | | s for the | | | | | | | | | | period | | | | | | | | | | from | | | | | | | | | | discontinu | | | | | | | | | | ing | | | | | | | | | | activities | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit/los | 2191 | 796 | 1962 | 1658 | -133 | 850 | -3580 | -92 | | s for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings | 0.18 | 0.07 | 0.16 | 0.14 | -0.01 | 0.07 | -0.30 | -0.01 | | per share, | | | | | | | | | | EUR | | | | | | | | | -------------------------------------------------------------------------------- | Earnings | 0.18 | 0.07 | 0.16 | 0.14 | -0.01 | 0.07 | -0.30 | -0.01 | | per share, | | | | | | | | | | EUR, | | | | | | | | | | diluted | | | | | | | | | -------------------------------------------------------------------------------- | Average | | | | | | | | | | number of | | | | | | | | | | shares, | | | | | | | | | | undiluted, | | | | | | | | | -------------------------------------------------------------------------------- | 1,000 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | | shares | | | | | | | | | -------------------------------------------------------------------------------- | Average | | | | | | | | | | number of | | | | | | | | | | shares, | | | | | | | | | | diluted, | | | | | | | | | -------------------------------------------------------------------------------- | 1,000 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | | shares | | | | | | | | | -------------------------------------------------------------------------------- | Average | 414 | 425 | 452 | 461 | 480 | 499 | 556 | 570 | | number of | | | | | | | | | | personnel | | | | | | | | | -------------------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES -------------------------------------------------------------------------------- | EUR thousand | 31.12.2009 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | On own behalf | | | -------------------------------------------------------------------------------- | Mortgages | 2,783 | 2,783 | -------------------------------------------------------------------------------- | Corporate mortgages | 12,500 | 12,500 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Lease liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | - in next 12 months | 516 | 492 | -------------------------------------------------------------------------------- | - in next 1-5 years | 1,328 | 1,756 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other commitments | 235 | 92 | -------------------------------------------------------------------------------- DERIVATIVE FINANCIAL INSTRUMENTS -------------------------------------------------------------------------------- | Nominal values | 31.12.2009 | 31.12.2008 | | EUR thousand | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | -------------------------------------------------------------------------------- | Forward contracts | 341 | 1,770 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest rate derivatives | | | -------------------------------------------------------------------------------- | Interest rate swaps | 10,000 | 9,810 | -------------------------------------------------------------------------------- | Purchased interest rate options | 0 | 3,500 | -------------------------------------------------------------------------------- CONSOLIDATED KEY FIGURES -------------------------------------------------------------------------------- | EUR thousand | 1.1. - | 1.1. - | Change % | | | 31.12. | 31.12. | | | | 2009 | 2008 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing operations | | | | -------------------------------------------------------------------------------- | Net sales | 70,005 | 84,921 | -17.6 | -------------------------------------------------------------------------------- | Operating profit | 7,990 | 8,593 | -7.0 | -------------------------------------------------------------------------------- | % of net sales | 11.4 | 10.1 | | -------------------------------------------------------------------------------- | Profit before tax | 7,970 | 5,590 | 42.6 | -------------------------------------------------------------------------------- | % of net sales | 11.4 | 6.6 | | -------------------------------------------------------------------------------- | Profit for the period | 5,945 | 4,036 | 47.3 | -------------------------------------------------------------------------------- | % of net sales | 8.5 | 4.8 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders´ equity | 25,580 | 16,680 | 53.4 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 18,669 | 28,706 | -35.0 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 12,597 | 8,035 | 56.8 | -------------------------------------------------------------------------------- | Net interest-bearing liabilities | 6,072 | 20,671 | -70.6 | -------------------------------------------------------------------------------- | Capital employed | 44,094 | 45,386 | -2.8 | -------------------------------------------------------------------------------- | Return on equity, % | 31.3 | -14.7 | | -------------------------------------------------------------------------------- | Return on capital employed, % | 20.9 | 0.0 | | -------------------------------------------------------------------------------- | Equity ratio, % | 44.6 | 28.2 | | -------------------------------------------------------------------------------- | Net gearing, % | 23.7 | 123.9 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital expenditure | 1,440 | 1,765 | -18.4 | -------------------------------------------------------------------------------- | % of sales | 2.1 | 2.1 | | -------------------------------------------------------------------------------- | Research and development costs | 1,407 | 1,361 | 3.4 | -------------------------------------------------------------------------------- | % of net sales | 2.0 | 1.6 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order stock | 8,827 | 11,650 | -24.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR | 0.56 | -0.25 | 322.1 | -------------------------------------------------------------------------------- | Earnings per share, EUR, diluted | 0.56 | -0.25 | 322.1 | -------------------------------------------------------------------------------- | Equity per share, EUR | 2.15 | 1.40 | 53.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of shares | | | | -------------------------------------------------------------------------------- | - cumulative | 11,897 | 11,897 | 0.0 | -------------------------------------------------------------------------------- | - cumulative, diluted | 11,897 | 11,897 | 0.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of employees | 436 | 527 | -17.3 | -------------------------------------------------------------------------------- The financial statements are audited and the auditors' report for the financial statements has been issued. ANNUAL GENERAL MEETING The Annual General Meeting will be held on Wednesday 31 March 2010 beginning at 10.30 am at Kansallissali, Aleksanterinkatu 44, Helsinki, Finland. FINANCIAL REPORTING IN 2010 The 2009 Annual Report will be published on the Company's website during week 10 at www.exelcomposites.com. The Group will issue quarterly interim reports on 7 May, 23 July and 29 October 2010. PRESS CONFERENCE Exel will hold a press conference for the media and analysts regarding the financial statements today Friday 19 February 2010 at 12.30 pm in the Pavilion Cabinet of the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland. Vantaa, 19 February 2010 EXEL COMPOSITES PLC Vesa Korpimies Board of Directors President and CEO FURTHER INFORMATION: Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email vesa.korpimies@exelcomposites.com Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email ilkka.silvanto@exelcomposites.com DISTRIBUTION DASDAQ OMX Helsinki Ltd. Main news media www.exelcomposites.com EXEL COMPOSITES IN BRIEF Exel Composites is a technology company which designs, manufactures and markets composite profiles and tubes for industrial applications. The Group is the leading composite profile manufacturer in the world and concentrates on growing niche segments. The core of the operations is based on own, internally developed composite technology, product range based on it and a 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. |
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