President & CEO
Riku Kytömäki

Exel Composites Plc’s Financial Statements Release 2017

“Revenue and operating profit increased significantly”

 

The year 2017 was in many ways a very good year for Exel Composites. I am delighted to say that both revenue and adjusted operating profit increased significantly compared to 2016. This is first and foremost a result of our strategic efforts, improved operational efficiency and continued tight cost control, but also reflects signs towards a general market recovery.

All our markets and customer segments performed well in the fourth quarter as well as in the twelve month review period. From the customer segment point of view, Industrial Applications continued to drive revenue growth. Construction & Infrastructure also delivered significant growth, supported by an increasing number of industrial investments and projects. In terms of regions and markets, China and the Asia-Pacific (APAC) region contributed most to revenue growth. In addition to significant organic growth, the Nanjing Jianhui business, which was acquired in April 2017, had a substantial positive impact on APAC revenue. The acquired business has performed according to expectations and has clearly strengthened Exel Composites’ position in China and APAC in 2017. Our main market area, Europe, also continued to deliver stable revenue growth.

In 2017 we were able to improve our adjusted operating profit significantly after two years of decline. The main factors were increased revenue from key customers in Europe in combination with further operational efficiency improvements. In addition, our focused efforts on new customer acquisition and new business especially in China were important contributors to the operating profit improvement. In the APAC region the acquisition of Nanjing Jianhui had a positive impact on both revenue and profitability. The downsizing of the Australian unit was completed in 2017 and manufacturing operations were stopped. This improved the overall profitability of the region and of the Group.

At the end of 2017 we also confirmed our overall strategic direction for the next three years. We will have an increased focus on high growth segments. We believe high growth can be found especially in construction, transportation, energy and telecommunications segments over the next few years. Within these segments global megatrends such as urbanization and sustainability increase demand for advanced composites. Our ambition is to leverage on these trends with attractive products that fit the demand.

Exel Composites Oyj, Vantaa head office, Mäkituvantie 5, FI-01510 Vantaa, Finland