EXEL OYJ FINANCIAL STATEMENT RELEASE 13.2.2009 at 9.50 1 (15)
EXEL OYJ'S FINANCIAL STATEMENT RELEASE 2008
January-December 2008 highlights and outlook for 2009
- Net sales for the financial year decreased to EUR 94.9 (113.5) million or 16.4
per cent over the previous year
- Operating profit for the financial year was EUR -0.4 (4.8) million,
representing -0.4 (4.2) per cent of net sales including EUR -7.8 (-5.3) million
of non-recurring items
- Net operative cash flow was positive at EUR +11.1 (+2.6) million
- Earnings per share for the full year were EUR -0.25 (0.17), adjusted for full
dilution
- The Board of Directors proposes that no dividend be paid for the financial
year 2008
October-December 2008 highlights
- Exel Group net sales in the fourth quarter were EUR 22.1 (28.1) million
- Operating profit in the fourth quarter was EUR 1.4 (0.7) million or 6.4 (2.4)
per cent of net sales including EUR -0.7 (-1.1) million of non-recurring items
related to the Sports restructuring measures
- Exel Composites' net sales decreased by 16.8 per cent to EUR 20.6 (24.7)
million; the operating profit was on a good level 14.2 (15.6) per cent of net
sales
- Exel Sports Brands' restructuring continued and co-determination process was
finalized in November
Vesa Korpimies, President and CEO:
“2008 was an eventful year for Exel and a year of structural change. The Outdoor
business of Exel Sports Brands was divested and the Group could sharpen its
focus on the core business, namely Exel Composites.
During 2008, the financial crisis has escalated markedly, affecting also market
demand in the pultrusion business negatively, especially in the building and
construction and transportation segments. In addition, Exel Composites
experienced a change in the procurement model in the wind energy business, which
had a negative impact on both sales and profitability. To address this, actions
were initiated to adapt Exel's cost base globally. Strong focus was also given
on operative working capital reduction in all units in the Group to safeguard
cash flow and improve financial position.
The restructuring of the Group has now been completed to a large extent. Exel
Sports Brands was divided in two businesses: Outdoor and Floorball. In June 2008
the outdoor business was sold to ESB Sports. The remaining floorball business
was organized as a separate operation within Exel Group. Whole year profit level
was still unsatisfactory and measures were taken to restore profitability of the
unit.
The net sales of Exel Group decreased by 16.4 per cent to EUR 94.9 (113.5)
million. Excluding non-recurring items the operating profit for the financial
year also decreased to EUR 7.4 (10.1) million. However, the strong focus on
cash flow generation was productive. Operative cash flow increased to EUR 11.1
(2.6) million and net debt was reduced to EUR 20.7 (27.9) million.
By the actions taken we are now in a position where we can concentrate on
developing our core business Exel Composites. However, as we enter 2009, market
demand is uncertain and we are preparing for the weakening trend to continue.
Further actions will be taken to control costs and streamline the operating
working capital and to amortize debt. We are determined to weather this
down-turn. We will also have a strong focus on sales to current and new
customers and seek synergies between production sites to ensure critical mass in
sales and technical sales.
Exel has a diverse customer base. Our products are used in numerous market
segments and Exel's market position is strong. We are also excited by the
prospects of new applications for example in the electrical industry. By the
actions taken and our devotion to develop leading-edge applications, I believe
that we are well positioned to take advantage of a more challenging business
environment and to capture growth opportunities.”
CONSOLIDATED KEY FIGURES, EUR million (unaudited)
--------------------------------------------------------------------------------
| | 1.10. - | 1.10. - | Change % | 1.1. - | 1.1. - | Change % |
--------------------------------------------------------------------------------
| | 31.12. | 31.12. | | 31.12. | 31.12. | |
--------------------------------------------------------------------------------
| | 2008 | 2007 | | 2008 | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 22.1 | 28.1 | -21.3 | 94.9 | 113.5 | -16.4 |
--------------------------------------------------------------------------------
| Operating | 1.4 | 0.7 | 110.9 | -0.4 | 4.8 | -108.0 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net | 6.4 | 2.4 | | -0.4 | 4.2 | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | -0.1 | 0.0 | -29.1 | -3.0 | 2.0 | -247.1 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders | 16.7 | 23.5 | 25.8 | 16.7 | 23.5 | -29.1 |
| ´ equity | | | | | | |
--------------------------------------------------------------------------------
| Net | 20.7 | 27.9 | -19.4 | 20.7 | 27.9 | -25.8 |
| interest-bea | | | | | | |
| ring | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Capital | 45.4 | 56.3 | | 45.4 | 56.3 | -19.4 |
| employed | | | | | | |
--------------------------------------------------------------------------------
| Return on | -3.0 | -0.6 | | -14.7 | 8.4 | |
| equity, % | | | | | | |
--------------------------------------------------------------------------------
| Return on | 13.4 | 1.3 | | 0.0 | 7.3 | |
| capital | | | | | | |
| employed, % | | | | | | |
--------------------------------------------------------------------------------
| Equity | 28.2 | 31.3 | | 28.2 | 31.3 | |
| ratio, % | | | | | | |
--------------------------------------------------------------------------------
| Net gearing, | 123.9 | 118.4 | | 123.9 | 118.4 | |
| % | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.00 | | -0.25 | 0.17 | |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.00 | | -0.25 | 0.17 | |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 1.40 | 1.98 | | 1.40 | 1.98 | |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
IFRS REPORTING
Exel has applied IFRS reporting since the beginning of 2005. This financial
statements bulletin has been prepared in accordance with the recognition and
measurement principles of IFRS, which are the same as in the 2007 financial
statements.
From the first quarter interim report in 2009 onwards Exel will be reporting
only with one segment, Exel Composites. Exel's segment reporting will follow the
change in the IFRS 8 standard that became effective at the beginning of 2009.
1 OCTOBER - 31 DECEMBER 2008
FINANCIAL PERFORMANCE
Exel's consolidated net sales decreased in the last quarter of 2008 by 21.3 per
cent to EUR 22.1 (28.1) million. Exel Composites accounted for 92.8 per cent or
EUR 20.6 (24.7) million of Group net sales in Q4 and Exel Sports Brands for 7.2
per cent or EUR 1.6 (3.9) million.
Exel's operating profit increased in the last quarter to EUR 1.4 (0.7) million.
Operating profit for Exel Composites in the last quarter of 2008 decreased to
EUR 2.9 (3.9) million. Operating loss for Exel Sports Brands was EUR -0.8 (-3.0)
million including non-recurring items of EUR -0.7 (-1.1) million.
FINANCIAL YEAR 2008
FINANCIAL PERFORMANCE
Net sales for the Exel Group decreased on the previous year, ending the year at
EUR 94.9 (113.5) million. The weaker sales were primarily a result of the
procurement model change in the wind energy business, the divestment of Exel
Sports Brands' Outdoor business, the divestment of the Plastics business in
Germany in May 2007 and generally weaker market conditions in Exel Composites.
The Group's main segment, Exel Composites, reported net sales in 2008 of EUR
86.7 (104.3) million, a decrease of 16.9 per cent. Exel Composites accounted for
90 (88) per cent of total Group sales in 2008. Net sales for Exel Sports Brands
in 2008 fell by 26.6 per cent from the previous year to EUR 10.0 (13.6) million.
Exel's operating profit for the financial period decreased to EUR -0.4 million
(including non-recurring items of EUR -7.8 million), compared to EUR 4.8 million
(including non-recurring items of EUR -5.3 million) in the corresponding period
last year. The decrease of the operating profit was due to the continued
restructuring costs of Exel Sports Brands and decreasing sales of Exel
Composites. The truck and trailer industry has been hit hard in the second half
year with one customer going into administration leading to a significant
write-off, EUR -0.3 million, in this segment.
A comprehensive rationalization program has been introduced to restore
profitability to satisfactory levels by reducing operational costs.
The Group's net financial expenses in 2008 were EUR 3.4 (2.4) million. Currency
losses due to weakening AUD were the main reason behind the increase as the debt
from the acquisition of Pacific Composites Pty. Ltd. in February 2006 was
denominated in AUD. The Group's profit before taxes was EUR -3.7 (-2.4) million
and result after taxes EUR -3.0 (2.0) million.
Earnings per share were EUR -0.25 (0.17). Return on investment was 0.0 (7.3) per
cent.
BALANCE SHEET AND FINANCIAL POSITION
Directed measures were taken to reduce operative working capital during the
year. Cash flow from business operations was positive at EUR +11.1 (+2.6)
million.
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 8.0 (4.9)
million.
Cash flow before financing but after capital expenditure amounted to EUR +9.4
(+2.1) million. The Company paid total dividends during the financial year of
EUR 2.4 (2.4) million. Dividend per share was EUR 0.20 (0.20).
The Group's consolidated total assets at the end of the financial year were EUR
59.3 (75.2) million.
Equity at the end of the financial year was EUR 16.7 (23.5) million and equity
ratio 28.2 (31.3) per cent. Interest-bearing liabilities amounted to EUR 28.7
(32.8) million, of which short-term liabilities accounted for EUR 6.6 (11.0)
million. In June, a financial recapitalization was carried out, where the
average maturity date of Exel's senior credit facility was extended from 22 to
38 months.
Net interest-bearing liabilities were EUR 20.7 (27.9) million, and the net
gearing ratio was 123.9 (118.4) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets amounted to EUR 1.8 (2.5) million.
Total depreciation of non-current assets during the year under review amounted
to EUR 4.0 (4.2) million. Write-downs were made amounting to EUR 0.4 million
relating to both intangible and tangible assets.
PERSONNEL
The number of Exel Group employees on 31 December 2008 was 472 (579), of whom
208 (240) worked in Finland and 264 (327) in other countries. The average number
of personnel during the financial year was 526 (568). The decrease both in
Finland and abroad is due to the divestment of Exel Sports Brands' Outdoor
business and reduction of personnel in Exel Composites, especially in Finland,
the UK and China units.
BUSINESS SEGMENTS
The Group's operations are divided into two primary business segments: Exel
Composites and Exel Sports Brands.
Exel Composites
Exel Composites' key financial figures for the reporting period were as follows:
--------------------------------------------------------------------------------
| | 1.10.- | 1.10.- | Change | 1.1. - | 1.1. - | Change % |
| | | | % | | | |
--------------------------------------------------------------------------------
| | 31.12. | 31.12. | | 31.12. | 31.12. | |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | | 2008 | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 20.6 | 24.7 | -16.8 | 86.7 | 104.3 | -16.9 |
--------------------------------------------------------------------------------
| Operating profit | 2.9 | 3.9 | -24.4 | 9.2 | 15.2 | -39.1 |
--------------------------------------------------------------------------------
| % of net sales | 14.2 | 15.6 | | 10.7 | 14.6 | |
--------------------------------------------------------------------------------
| Average number of | 480 | 505 | -5.0 | 476 | 500 | -4.8 |
| personnel | | | | | | |
--------------------------------------------------------------------------------
Net sales for Exel Composites decreased by 16.9 per cent over the previous year
to EUR 86.7 (104.3) million. The decrease in sales was primarily a result of
procurement model change in the wind energy segment and the divestment of the
Plastics business in Germany. In addition, internal sales to Exel Sports Brands
declined during the year.
The company was also faced with weaker market conditions in the segments that
are facing difficult economic conditions globally, i.e. in transportation and
building and construction segments. On the other hand, sales in energy and
telecommunication segments were strong due to a successful launch of new
applications.
Operating profit decreased by 39.1 per cent to EUR 9.2 (15.2) million including
non-recurring items of EUR -1.1 million (-0.7). The reduction in sales had a
negative impact on the operating profit of Exel Composites. Operating profit
during the fourth quarter was EUR 2.9 (3.9) million representing 14.2 (15.6) per
cent of sales.
Costs, e.g. energy and raw materials were increasing. Exel was able to transfer
a part of the increase in product prices. The company continues to increase the
product prices to compensate for the higher costs.
Exel Sports Brands
Exel Sports Brands' key financial figures for the reporting period were as
follows:
--------------------------------------------------------------------------------
| | 1.10.- | 1.10.- | Change % | 1.1. - | 1.1. - | Change % |
--------------------------------------------------------------------------------
| | 31.12. | 31.12. | | 31.12. | 31.12. | |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | | 2008 | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 1.6 | 3.9 | -58.4 | 10.0 | 13.6 | -26.6 |
--------------------------------------------------------------------------------
| Operating | -0.8 | -3.0 | 75.0 | -9.0 | -10.7 | -15.7 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -46.1 | -76.8 | | -89.7 | -78.1 | |
--------------------------------------------------------------------------------
| Average number | 18 | 49 | -63.3 | 33 | 49 | -32.7 |
| of personnel | | | | | | |
--------------------------------------------------------------------------------
The net sales of Exel Sports Brands decreased by 26.6 per cent to EUR 10.0
(13.6) million. The decrease in sales was due to the divestment of the Exel
Sports Brands Outdoor business to ESB Sports Oy in June 2008. At present the
company's operations consist solely of floorball products in which it has a
strong brand name and market position.
Exel Sports Brands' operating loss was EUR -9.0 including EUR -7.1 million of
non-recurring items, compared to EUR -10.7 million, including EUR -3.5 million
non-recurring items the previous year. Streamlining of Exel Sports Brands
continued in 2008, but the profitability was still unsatisfactory and actions
were taken to improve profit level.
Timo Lepistö was appointed Managing Director of Exel Sports on 4 June 2008.
CHANGES IN GROUP STRUCTURE
In May 2008 Exel signed an agreement to sell Exel Sports Brands' Outdoor
business to ESB Sports, who took over the Outdoor business, acquired the
inventory and order backlog related to the Outdoor 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 such as Nordic WalkerTM and
Nordic BladerTM for selected product Groups. The employees of the Outdoor
business in Finland (9 persons) and Germany (18 persons) were transferred to ESB
Sports as existing employees. The business transfer streamlined the business
structure of Exel Group and increased the focus on the core industrial
activities.
The remaining floorball business of Exel Sports Oy is now operated as a separate
unit.
The operations of Exel USA, Inc. in the United States were ceased in May 2008.
The sale of shares of the China-based Nordic Sports Products (Beijing) Co., Ltd.
to ESB Sports Oy was carried out in September 2008.
CHANGES IN GROUP MANAGEMENT
Vesa Korpimies was appointed President and CEO of Exel Oyj as from 10 April
2008.
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 10 April 2008 approved the
Board's proposal to distribute a dividend of EUR 0.20 per share, representing a
total of EUR 2.4 million for the financial year 2007.
The AGM authorized the Board of Directors to decide on a share issue. A maximum
of 594,842 new shares may be issued and a maximum of 594,842 Company's own
shares that are in the Company's possession may be conveyed. The AGM also
authorized the Board to acquire the Company's own shares. By virtue of the
authorization the Board is entitled to decide on acquiring a maximum of 594,842
Company's own shares.
The Annual General Meeting resolved to decrease the company's premium fund by
the amount of EUR 8,487,699.84 and to transfer the amount to the invested
non-restricted equity fund. After the decrease the amount of the premium fund is
zero.
Exel's 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 12.20 (17.45)
and the lowest EUR 2.41 (10.55). At the end of the year, the share price was EUR
2.72 (11.90). The average share price during the financial year was EUR 5.92
(14.14).
A total of 1,654,322 (4,907,765) shares were traded during the year, which
represents 13.9 (41.3) per cent of the average number of shares. On 31 December
2008, Exel's market capitalization was EUR 32.6 (141.6) million.
SHAREHOLDERS AND DISCLOSURES
On 31 December 2008, 0.8 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.
Exel's largest shareholder is the Swedish investment company Nordstjernan AB,
which owned 29.4 per cent of shares at the end of 2008. Other major shareholders
included Ilmarinen Mutual Pension Insurance Company (5.8%) and Berling Capital
Oy (3.2%). At the end of the year the Company had a total of 1,673 (1,675)
shareholders.
During the year under review, Exel received no flagging announcements.
CORPORATE GOVERNANCE
Exel complies with the general insider trading guidelines issued by the Helsinki
Stock Exchange on 1 January 2006, as well as with official regulations related
to the governance of public joint stock companies with the exception related to
the Board Committees. Exel's corporate governance principles are available on
the Company website at www.exel.net and the Group Annual Report.
BOARD OF DIRECTORS AND AUDITORS
On 10 April 2008 the Annual General Meeting appointed Kari Haavisto, Peter
Hofvenstam and Vesa Kainu to continue on the Board of Directors. Göran Jönsson
and Heikki Mairinoja were appointed as new members of the Board. Peter
Hofvenstam was elected Chairman of the Board.
The Board of Directors convened nine times in 2008 and the average attendance
rate at these meetings was 95 per cent. The fees paid to the Board of Directors
totaled EUR 164 thousand in 2008.
The Board of Directors has reviewed the independence of Board members in
accordance with item 18 of the Corporate Governance Recommendation. Kari
Haavisto, Vesa Kainu 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 Company has a Nomination Committee comprising the Chairman and persons
nominated by the four largest shareholders as of 1 November before the Annual
General Meeting. In 2008 the Nomination Committee comprised Tomas Billing as
Chairman (Nordstjernan AB), Mikko Mursula (Ilmarinen Mutual Pension Insurance
Company, Esa Karppinen (Berling Capital Oy) and Pertti Laine (Veikko Laine Oy).
The committee met two times in 2008.
Ernst & Young, Authorized Public Accountants, with Eija Niemi-Nikkola, APA, as
principal auditor, were elected to serve as company auditor in the AGM in 2008.
The fees paid to the auditors totaled EUR 206 thousand in 2008.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to market demand in
certain market segments of Exel Composites, such as building and construction,
telecommunication and wind energy. Raw material price, energy cost and other
cost increases may put pressure on profitability. Currency rate changes,
especially the weakening AUD and strengthening USD, and further intensified
price competition may also have a negative effect on the result. The poor
availability of bank financing may weaken the demand in Exel's market and may
increase the credit loss risks and have an effect on the Exel Group.
EVENTS AFTER THE REPORTING PERIOD
New financial targets
Due to the financial turbulence and weaker market outlook for Exel's products,
it is not realistic to set the financial targets for the near future, but for a
normalized business cycle.
The Exel Board of Directors has approved in a board meeting held on 12 February
2009 revised long-term financial targets over a business cycle.
Growth: the objective is that Exel Group's average organic growth annually
exceeds market growth of the industry. Growth achieved through acquisitions is
part of Exel's strategy.
Operating profit: Exel's target is the operating profit to exceed 10 per cent of
net sales.
Dividend policy: Exel aims to distribute 40 per cent of net income in dividends,
as permitted by the financial structure and growth opportunities.
OUTLOOK FOR 2009
The pultrusion market is affected by the worldwide business slow-down. A
weakened demand has been observed, especially in the building and construction
and transportation segments.
Further actions will therefore be taken to manage the cash flow to streamline
the operating working capital and to amortize debt. Due to the poor visibility
of the market development, the Group has developed contingency plans and
comprehensive cost and capital reduction programs have been introduced to
protect profitability and cash flow.
Exel will maintain a strong focus on developing sales and is constantly
developing new applications to capture growth opportunities within the advanced
composites industry.
Due to the market uncertainty and poor visibility Exel will not give any profit
guidance.
BOARD PROPOSAL FOR DIVIDEND DISTRIBUTION
Exel's strategic 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 2008 the parent company's distributable funds totaled EUR 14,626
thousand.
The Board considers that in the current globally difficult financial situation
it is important to strengthen the financial position, decrease the
interest-bearing liabilities and improve the net gearing of the company.
Therefore, the Board proposes to the Annual General Meeting that no dividend be
paid for the 2008 financial year.
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
--------------------------------------------------------------------------------
| | 1.10.-3 | 1.10.-3 | Change | 1.1.-31. | 1.1.-31. | Change |
| | 1.12. | 1.12. | % | 12. | 12. | % |
--------------------------------------------------------------------------------
| | 2008 | 2007 | | 2008 | 2007 | |
--------------------------------------------------------------------------------
| EUR thousand | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 22,082 | 28,058 | -21.3 | 94,925 | 113,489 | -16.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 248 | 122 | 103.3 | 298 | 854 | -65.1 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Operating | -20,094 | -25,236 | 20.4 | -91,640 | -103,445 | 11.4 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -819 | -2,273 | 64.0 | -3,967 | -6,118 | 35.2 |
| and impairment | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 1,417 | 672 | 110.9 | -384 | 4,780 | -108.0 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -1,181 | -989 | -19.4 | -3,351 | -2,360 | -42.0 |
| items | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before | 236 | -317 | 174.4 | -3,735 | 2,420 | 254.3 |
| tax | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -369 | 283 | 230.4 | 779 | -410 | 290.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | -133 | -34 | -291.2 | -2,956 | 2,010 | 247.1 |
| for the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders | -133 | -34 | | -2,956 | 2,010 | |
| of the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | | 0 | 0 | |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.00 | | -0.25 | 0.17 | |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.00 | | -0.25 | 0.17 | |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| | 31.12.2008 | 31.12.2007 | Change |
--------------------------------------------------------------------------------
| EUR thousand | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Goodwill | 8,362 | 9,627 | -1,265 |
--------------------------------------------------------------------------------
| Other intangible assets | 1,774 | 2,689 | -915 |
--------------------------------------------------------------------------------
| Tangible assets | 11,824 | 14,796 | -2,972 |
--------------------------------------------------------------------------------
| Deferred tax assets | 3,207 | 2,521 | 686 |
--------------------------------------------------------------------------------
| Other non-current assets | 68 | 76 | -8 |
--------------------------------------------------------------------------------
| Non-current assets total | 25,975 | 29,710 | -4,474 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 12,408 | 22,155 | -9,747 |
--------------------------------------------------------------------------------
| Trade and other receivables | 12,856 | 18,426 | -5,570 |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 8,035 | 4,901 | 3,134 |
--------------------------------------------------------------------------------
| Current assets total | 33,300 | 45,482 | -12,182 |
--------------------------------------------------------------------------------
| Total assets | 59,275 | 75,192 | -15,917 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Restricted equity fund | 5 | 8,492 | -8,487 |
--------------------------------------------------------------------------------
| Non-restricted equity fund | 8,488 | 0 | 8,488 |
--------------------------------------------------------------------------------
| Retained earnings | 9,002 | 10,890 | -1,888 |
--------------------------------------------------------------------------------
| Profit for the period | -2,956 | 2,010 | -4,966 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity | 16,680 | 23,553 | -6,853 |
| holders of parent company | | | |
--------------------------------------------------------------------------------
| Minority share | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | 16,680 | 23,533 | -6,853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 22,057 | 21,755 | 302 |
--------------------------------------------------------------------------------
| Interest-free liabilities | 348 | 345 | 0 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 353 | 753 | -400 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 6,648 | 11,008 | -4,360 |
--------------------------------------------------------------------------------
| Trade and other non-current | 13,188 | 17,799 | -4,611 |
| liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 42,595 | 51,658 | -9,063 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 59,275 | 75,192 | -15,916 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| | Share | Share | Non- | Retained | Minority | Total |
--------------------------------------------------------------------------------
| | Capita | Premiu | Restricte | Earnings | Interest | |
| | l | m | d | | | |
--------------------------------------------------------------------------------
| EUR thousand | Reserv | Equity | | | |
| | e | Fund | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1 | 2,141 | 8,492 | 0 | 13,729 | 0 | 24,363 |
| January 2007 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | 0 | -429 | 0 | -429 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | -32 | 0 | -32 |
--------------------------------------------------------------------------------
| Dividend | | | 0 | -2,379 | | -2,379 |
--------------------------------------------------------------------------------
| Profit for the period | | 0 | 2,010 | 0 | 2,010 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 31st | 2,141 | 8,492 | 0 | 12,900 | 0 | 23,533 |
| December 2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1st | 2,141 | 8,492 | 0 | 12,900 | 0 | 23,533 |
| January 2008 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | 0 | -1,519 | 0 | 0 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | -8,488 | 8,488 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Dividend | | | 0 | -2,379 | | -2,379 |
--------------------------------------------------------------------------------
| Profit for the period | | 0 | -2,956 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 31st | 2,141 | 5 | 8,488 | 6,046 | 0 | 16,680 |
| December 2008 | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 1.1.-31.12 | 1.1.-31.12 | Change |
| | . | . | |
--------------------------------------------------------------------------------
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| EUR thousand | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities |
--------------------------------------------------------------------------------
| Profit for the period | -2,956 | 2,010 | -4,966 |
--------------------------------------------------------------------------------
| Adjustments | 6,182 | 9,676 | -3,494 |
--------------------------------------------------------------------------------
| Change in working capital | 11,815 | -5,903 | 17,718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow generated by operations | 15,041 | 5,783 | 9,258 |
--------------------------------------------------------------------------------
| Interest paid | -1,876 | -1,687 | -189 |
--------------------------------------------------------------------------------
| Interest received | 259 | 137 | 122 |
--------------------------------------------------------------------------------
| Other financial items | -763 | -388 | -375 |
--------------------------------------------------------------------------------
| Income taxes paid | -1,572 | -1,250 | -322 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow from operating | 11,089 | 2,595 | 8,494 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Disposal of business | 25 | 672 | -647 |
--------------------------------------------------------------------------------
| Capital expenditure | -1,765 | -2,469 | 704 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 90 | 1,306 | -1,216 |
--------------------------------------------------------------------------------
| Other cash flow from investing | 0 | 0 | 0 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -1,650 | -491 | -1,159 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings | 10,000 | 0 | 10,000 |
--------------------------------------------------------------------------------
| Installments of long-term borrowings | -8,973 | -1,600 | -7,373 |
--------------------------------------------------------------------------------
| Change in short-term loans | -4,563 | 958 | -5,521 |
--------------------------------------------------------------------------------
| Installments of finance lease | -390 | -381 | -9 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2,379 | -2,379 | 0 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -6,305 | -3,402 | -2,903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | 3,134 | -1,298 | 4,432 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the beginning of | 4,901 | 6,199 | -1,298 |
| period | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | 3,134 | -1,298 | 4,432 |
--------------------------------------------------------------------------------
| Liquid funds at the end of period | 8,035 | 4,901 | 3,134 |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR | IV/ | III/ | II/ | I/ | IV/ | III/ | II/ | I/ |
| thousand | 2008 | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | | | | | |
| by segment | | | | | | | | |
--------------------------------------------------------------------------------
| Exel | 20570 | 21415 | 22933 | 21757 | 24728 | 25259 | 27577 | 26697 |
| Composites | | | | | | | | |
--------------------------------------------------------------------------------
| Exel Sports | 1628 | 2812 | 2393 | 3171 | 3914 | 3827 | 2166 | 3727 |
| Brands | | | | | | | | |
--------------------------------------------------------------------------------
| Intra Group | -118 | -304 | -484 | -850 | -584 | -1173 | -1022 | -1628 |
| sales | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 22082 | 23923 | 24842 | 24078 | 28058 | 27912 | 28721 | 28797 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | | | | | | | | |
| profit by | | | | | | | | |
| segment | | | | | | | | |
--------------------------------------------------------------------------------
| Exel | 2911 | 1660 | 1782 | 2890 | 3853 | 2556 | 4478 | 4283 |
| Composites | | | | | | | | |
--------------------------------------------------------------------------------
| Exel Sports | -751 | 707 | -7576 | -1357 | -3005 | -5182 | -1760 | -704 |
| Brands | | | | | | | | |
--------------------------------------------------------------------------------
| Group items | -743 | 125 | 165 | -196 | -177 | 547 | -56 | -53 |
| and | | | | | | | | |
| elimination | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 1417 | 2492 | -5629 | 1337 | 672 | -2079 | 2662 | 3526 |
| profit, | | | | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | -1181 | -1357 | 554 | -1368 | -989 | -842 | -190 | -340 |
| financial | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | 236 | 1135 | -5075 | -31 | -317 | -2921 | 2472 | 3186 |
| before | | | | | | | | |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
| Income | -369 | -285 | 1495 | -62 | 283 | 714 | -526 | -882 |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | -133 | 850 | -3580 | -92 | -34 | -2206 | 1946 | -2304 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | -0.01 | 0.07 | -0.30 | -0.01 | 0.00 | 0.19 | 0.16 | 0.19 |
| per share, | | | | | | | | |
| EUR | | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | -0.01 | 0.07 | -0.30 | -0.01 | 0.00 | 0.19 | 0.16 | 0.19 |
| per share, | | | | | | | | |
| EUR, | | | | | | | | |
| diluted | | | | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | | | |
| number of | | | | | | | | |
| shares, | | | | | | | | |
| undiluted, | | | | | | | | |
--------------------------------------------------------------------------------
| 1,000 | 11897 | 11897 | 11,89 | 11897 | 11897 | 11897 | 11897 | 11897 |
| shares | | | 7 | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | | | |
| number of | | | | | | | | |
| shares, | | | | | | | | |
| diluted, | | | | | | | | |
--------------------------------------------------------------------------------
| 1,000 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 | 11897 |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Average | 480 | 499 | 556 | 570 | 574 | 569 | 566 | 576 |
| number of | | | | | | | | |
| personnel | | | | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | |
--------------------------------------------------------------------------------
| Mortgages | 2,783 | 2,783 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other lease liabilities |
--------------------------------------------------------------------------------
| - in next 12 months | 492 | 496 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 1,756 | 2,205 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 92 | 876 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| Nominal values | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| EUR thousand | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives |
--------------------------------------------------------------------------------
| Forward contracts | 1,770 | 8,372 |
--------------------------------------------------------------------------------
| Purchased currency options | 0 | 5,078 |
--------------------------------------------------------------------------------
| Sold currency options | 0 | 4,297 |
--------------------------------------------------------------------------------
| Currency swaps | 0 | 1,617 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives |
--------------------------------------------------------------------------------
| Interest rate swaps | 9,810 | 333 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 3,500 | 4,667 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| | 1.1.-31.12. | 1.1.-31.12. | Change % |
--------------------------------------------------------------------------------
| EUR thousand | 2008 | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 94,925 | 113,489 | -16.4 |
--------------------------------------------------------------------------------
| Operating profit | -384 | 4,780 | -108.0 |
--------------------------------------------------------------------------------
| % of net sales | -0.4 | 4.2 | |
--------------------------------------------------------------------------------
| Profit before tax | -3,735 | 2,420 | -254.3 |
--------------------------------------------------------------------------------
| % of net sales | -3.9 | 2.1 | |
--------------------------------------------------------------------------------
| Profit for the period | -2,956 | 2,010 | -247.1 |
--------------------------------------------------------------------------------
| % of net sales | -3.1 | 1.8 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 16,680 | 23,553 | -29.1 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 28,706 | 32,762 | -12.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 8,035 | 4,901 | 63.9 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities | 20,671 | 27,861 | -25.8 |
--------------------------------------------------------------------------------
| Capital employed | 45,386 | 56,295 | -19.4 |
--------------------------------------------------------------------------------
| Return on equity, % | -14.7 | 8.4 | |
--------------------------------------------------------------------------------
| Return on capital employed, % | 0.0 | 7.3 | |
--------------------------------------------------------------------------------
| Equity ratio, % | 28.2 | 31.3 | |
--------------------------------------------------------------------------------
| Net gearing, % | 123.9 | 118.4 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 1,765 | 2,469 | -28.5 |
--------------------------------------------------------------------------------
| % of sales | 1.9 | 2.2 | |
--------------------------------------------------------------------------------
| Research and development costs | 1,918 | 2,824 | -32.1 |
--------------------------------------------------------------------------------
| % of net sales | 2.0 | 2.5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 11,650 | 12,889 | -9.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.25 | 0.17 | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, diluted | -0.25 | 0.17 | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.40 | 1.98 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,897 | |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,897 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 527 | 568 | -7.2 |
--------------------------------------------------------------------------------
This financial statements bulletin is unaudited and the auditors' report for the
financial statements has not been issued.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held on Thursday 16 April 2009 beginning at
10.00 am at Kansallissali, Aleksanterinkatu 44, Helsinki, Finland.
FINANCIAL REPORTING IN 2009
The 2008 Annual Report will be published on the Company's website during week
11.
The Group will issue quarterly interim reports on 7 May, 23 July and 29 October
2009.
PRESS CONFERENCE
Exel will hold a press conference regarding the financial statements today
Friday 13 February 2009 for the media and analysts at 12.30 am in the Pavilion
Cabinet of the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland.
Vantaa, 13 February 2009
EXEL OYJ Vesa Korpimies
Board of Directors President and CEO
Further information:
Vesa Korpimies, President and CEO, tel. +359 50 590 6754, or email
vesa.korpimies@exel.net
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email
ilkka.silvanto@exel.fi
DISTRIBUTION
DASDAQ OMX Helsinki Ltd.
Main news media
www.exel.net
Exel is a technology company which designs, manufactures and markets composite
profiles and tubes for industrial applications and sports equipment. Exel's
operations consist of two divisions: Exel Composites, the Industry Division of
Exel, and Exel Sports Brands.
The personnel's expertise and high level of technology play a major role in
Exel's operations. The core of the operations is based on own, internally
developed composite technology, product range based on it and the domination of
selected market segments with a strong quality and brand image. The Company's
growth is based on permanent search of new applications and development in
co-operation with customers. Exel concentrates on niche segments and on
profitable growth. Exel's share is listed in the Small Cap segment of the NASDAQ
OMX Helsinki Ltd.