EXEL OYJ STOCK EXCHANGE RELEASE 27.2.2008 at 11.00 am 1 (15)
EXEL OYJ'S FINANCIAL STATEMENTS BULLETIN 2007
Summary
- Net sales for the financial year increased to EUR 113.5 (112.4) million or
1.0% over the previous year
- Net sales in the fourth quarter were EUR 28.1 (30.4) million
- Operating profit for the financial year was EUR 4.8 (0.4) million,
representing 4.2% (0.3%) of net sales including EUR -5.3 (-6.7) million of
non-recurring items
- Operating profit in the fourth quarter was EUR 0.7 (0.6) million or 2.4%
(2.1%) of net sales including EUR -1.1 (0.0) million of non-recurring items
- Net operative cash flow was positive at EUR +2.6 (+5.2) million
- Earnings per share for the full year were EUR 0.17 (-0.06), adjusted for full
dilution
- The Industry Division, Exel Composites, continued its positive development
throughout the year recording its best earnings ever, improving its earnings by
70% and accounting for 88% of the Group sales
- The development of the Sport Division, Exel Sports Brands, was highly
unsatisfactory with declining sales and a continued loss
- The Board of Directors proposes a dividend of EUR 0.20 (0.20) per share
- Vesa Korpimies appointed as new President and CEO as of 10 April 2008
Göran Jönsson, President and CEO:
“The Industry Division, now named Exel Composites, has suffered from the
slowdown of sales to the sports industry, the wind energy and the antenna radome
markets. However, good sales development in other new applications and improved
efficiency have had a positive impact on the earnings. The integration of
Pacific Composites has been successfully completed, and the acquisition, as per
28 February 2006, has to a large extent contributed to the positive earnings
development of Exel Composites, resulting in the best earnings ever for the
division. Exel Composites will continue to refine the organization and to
intensify the efforts to organically and internationally grow the profitable
sales in the prioritized segments.
The Sport Division, also known as Exel Sports Brands, continued to suffer from
low sales caused by problems with the flow of products throughout the
organization. At the beginning of November 2007, a new managing director was
appointed to accomplish a turnaround. During the last quarter heavy measures
were taken to align the organization to the present activity level, improve the
sourcing and reduce the capital employed in terms of too high inventories.
However, it will still require a lot of efforts and strong focus for Exel Sports
Brands to return to acceptable profitability.”
CONSOLIDATED KEY FIGURES, EUR million (unaudited)
--------------------------------------------------------------------------------
| | 1.10. - | 1.10. - | Change % | 1.1. - | 1.1. - | Change % |
--------------------------------------------------------------------------------
| | 31.12. | 31.12. | | 31.12. | 31.12. | |
--------------------------------------------------------------------------------
| | 2007 | 2006 | | 2007 | 2006 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 28.1 | 30.4 | -7.6 | 113.5 | 112.4 | 1.0 |
--------------------------------------------------------------------------------
| Operating | 0.7 | 0.6 | 5.2 | 4.8 | 0.4 | 1,138.3 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net | 2.4 | 2.1 | | 4.2 | 0.3 | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Profit for | -0.0 | -0.0 | -88.9 | 2.0 | -0.7 | 374.2 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders | 23.5 | 24.4 | -3.4 | 23,5 | 24.4 | -3.4 |
| ´ equity | | | | | | |
--------------------------------------------------------------------------------
| Net | 27.9 | 27.5 | 1.4 | 27.9 | 27.5 | 1.4 |
| interest-bea | | | | | | |
| ring | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Capital | 56.3 | 58.1 | -3.0 | 56.3 | 58.1 | -3.0 |
| employed | | | | | | |
--------------------------------------------------------------------------------
| Return on | -0.6 | -0.3 | | 8.4 | -2.9 | |
| equity, % | | | | | | |
--------------------------------------------------------------------------------
| Return on | 1.3 | 4.9 | | 7.3 | 1.2 | |
| capital | | | | | | |
| employed, % | | | | | | |
--------------------------------------------------------------------------------
| Equity | 31.3 | 29.9 | | 31.3 | 29.9 | |
| ratio, % | | | | | | |
--------------------------------------------------------------------------------
| Net gearing, | 118.4 | 112.8 | | 118.4 | 112.8 | |
| % | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.00 | 0.00 | | 0.17 | -0.06 | |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 1.98 | 2.05 | | 1.98 | 2.05 | |
| 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 2006 financial
statements.
1 OCTOBER - 31 DECEMBER 2007
FINANCIAL PERFORMANCE
Exel's consolidated net sales decreased in the last quarter of 2007 by 7.6% to
EUR 28.1 (30.4) million. Exel Composites, the Industry Division of Exel Group,
accounted for 86% or EUR 24.7 (27.3) million of Group net sales in Q4 and Exel
Sports Brands for 14% or EUR 3.9 (5.0) million.
Exel's operating profit increased in the last quarter by 5.2% to EUR 0.7 (0.6)
million. Operating profit for Exel Composites in the last quarter of 2007
increased by 38.1% to EUR 3.9 (2.8) million. Operating profit for Exel Sports
Brands was negative at EUR -3.0 (-2.3) million including write-offs of EUR 1.1
million.
FINANCIAL YEAR 2007
FINANCIAL PERFORMANCE
Net sales for the Exel Group remained on the previous year's level, ending the
year at EUR 113.5 (112.4) million.
The Group's main line of business, Exel Composites', reported net sales in 2007
of EUR 104.3 (105.0) million, a decrease of 0.7%. A changed production model of
poles and floorball sticks where Exel Composites manufactures only shafts to
Exel Sports Brands, resulted in a decline in internal sales of EUR 7.4 million.
Sales also decreased due to the divestment of the Plastics operations in
Germany. Excluding the sales to Exel Sports Brands, sales increased by 6.4% in
2007. Exel Composites accounted for 88% (83%) of total Group sales in 2007.
Net sales for Exel Sports Brands in 2007 fell by 29.2% from the previous year to
EUR 13.6 (19.3) million. Furthermore, Exel Sports Brands experienced serious
delays in deliveries from its Chinese pole suppliers and in addition had
extensive quality problems linked to the production transfer. Furthermore, a
weak sporting goods market impacted sales negatively.
In combination with high costs to overcome late deliveries from suppliers as
well as domestic forwarders, the division showed a continued negative result.
The lower than expected sales also led to an overstock situation which required
write-offs of inventory in the third quarter as well as impairment of intangible
and tangible assets in the third and fourth quarter. In addition, related
manufacturing equipment in Exel Composites was written down. The profit level
was highly unsatisfactory.
Exel's operating profit for the financial period increased to EUR 4.8 million
(including non-recurring items of EUR -5.3 million), compared to EUR 0.4 million
(including non-recurring items of EUR -6.7 million) in the corresponding period
last year. The improvement of the underlying operating profit has been a result
of the restructuring measures taken in the problem units in 2006 and 2007,
especially Mäntyharju, Belgium and the German Sport unit, the contribution of
the Pacific Composites acquisition and the gain from the sale of properties.
Short supply of certain carbon fiber types continued throughout the first half
of 2007. The lack of supply also increased raw material price levels, although
it was possible to transfer some of the increase to product prices. Signs of
improvement in the carbon fiber supply situation started to emerge towards the
summer. At the end of the reporting period there was shortage only of some
special types of carbon fiber.
The Group's net financial expenses in 2007 were EUR 2.4 (1.1) million. The main
reasons for the increased financial items were the higher interest rates, EUR
0.4 million, and currency exchange net losses, EUR 0.7 million. The Group's
profit before taxes was EUR 2.4 (-0.7) million and profit after taxes EUR 2.0
(-0.7) million.
Earnings per share were EUR 0.17 (-0.06). Return on investment was 7.3% (1.2%).
BALANCE SHEET AND FINANCIAL POSITION
Cash flow from business operations was positive at EUR +2.6 (+5.2) million.
Operative 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 4.9 (6.2) million.
Cash flow before financing but after capital expenditure amounted to EUR +2.1
(-15.7) million. The Company paid total dividends during the financial year of
EUR 2.4 (4.7) million. Dividend per share was EUR 0.20 (0.40).
The Group's consolidated total assets at the end of the financial year were EUR
75.2 (81.9) million.
Equity at the end of the financial year was EUR 23.5 (24.4) million and equity
ratio 31.3% (29.9%). Interest-bearing liabilities amounted to EUR 32.8 (33.7)
million, of which short-term liabilities accounted for EUR 11.0 (7.9) million.
Net interest-bearing liabilities were EUR 27.9 (27.5) million and the net
gearing ratio was 118.4% (112.8%).
CAPITAL EXPENDITURE AND DEPRECIATION
During the year the Group concentrated on the consolidation of the previous
year's main acquisition. The capital expenditure on fixed assets amounted to EUR
2.5 million (19.9).
Total depreciation of non-current assets during the year under review amounted
to EUR 4.2 (4.6) million. Write-downs were made amounting to EUR 2.0 million
relating to both intangible and tangible assets. Additionally, other operating
expenses include 0.5 million write-downs of tangible assets.
PERSONNEL
The number of Exel Group employees on 31 December 2007 was 579 (555), of whom
240 (237) worked in Finland and 327 (318) in other countries. The average number
of personnel during the financial year was 568 (600). There was an increase from
last year due to the acquisition of Pacific Composites. At the same time, there
was a reduction of personnel due to the restructuring of the Exel Sports Brands
and sporting goods production, the closure of Clacton operation in the UK in
2006 and the divestment of the Plastics operations in Germany in 2007.
BUSINESS SEGMENTS
The Group's operations are divided into two primary business segments: Exel
Composites and Exel Sports Brands. Exel Composites includes all production
activities in the Company as from 1 January 2007. Therefore the Sport Industry
business and Mäntyharju operations in Finland, which earlier were part of Exel
Sports Brands, were transferred to Exel Composites. The comparative divisional
figures from 2006 have been changed correspondingly.
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 | 2007 | 2006 | | 2007 | 2006 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 24.7 | 27.3 | -9.3 | 104.3 | 105.0 | -0.7 |
--------------------------------------------------------------------------------
| Operating profit | 3.9 | 2.8 | 38.1 | 15.2 | 9.0 | 69.5 |
--------------------------------------------------------------------------------
| % of net sales | 15.6 | 10.2 | | 14.6 | 8.5 | |
--------------------------------------------------------------------------------
| Average number of | 505 | 488 | 3.5 | 500 | 510 | -2.0 |
| personnel | | | | | | |
--------------------------------------------------------------------------------
Net sales for Exel Composites decreased by 0.7% from the previous year to EUR
104.3 (105.0) million. The main reason for the decline was a lowered off-take of
shafts and assembling of products from our production unit in Mäntyharju by Exel
Sports Brands. Deliveries for industrial profiles continued to be affected by
shortage of carbon fiber. The telecommunication sector continued to be slow. The
transportation, energy and building/construction and cleaning and maintenance
markets, in particular, were strong resulting to overall external sales to grow
by 6.4%. Operating profit grew by 69.5% to EUR 15.2 (9.0) million. The
profitability was good in all units. The restructuring of the Belgian operations
gave good results even in the traditionally slower summer months. In addition,
the development in the Chinese unit was also positive.
Through the acquisition of Pacific Composites, Exel established itself as the
world's first truly international pultrusion company. The acquisition extended
the product range and reinforced Exel's leading position in the Pacific Rim/Far
East. New commercial applications include for example profiles for aerospace
applications. Exel can now serve its international customers globally. The
integration of Pacific Composites was successfully completed during the year and
added experienced management and important international competence to the
Group.
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 | 2007 | 2006 | | 2007 | 2006 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 3.9 | 5.0 | -21.3 | 13.6 | 19.3 | -29.2 |
--------------------------------------------------------------------------------
| Operating | -3.0 | -2.3 | -30.0 | -10.7 | -9.4 | -13.3 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -76.8 | -46.5 | | -78.1 | -48.8 | |
--------------------------------------------------------------------------------
| Average number | 49 | 58 | -15.5 | 49 | 69 | -29.0 |
| of personnel | | | | | | |
--------------------------------------------------------------------------------
The development of Exel Sports Brands was highly unsatisfactory in 2007. Sales
declined and a continued big loss was recorded. Net sales decreased 29.2% to EUR
13.6 (19.3) million. Exel Sports Brands experienced logistics problems and was
unable to deliver orders in time to its customers. The lower sales figure is
partly due to the mild winter, which also had a negative impact on reorders.
Exel Sports Brands was not yet able to adapt the overhead costs to match with
the lower sales level.
Exel Sports Brands' operating loss was EUR -10.7 (-5.9 before non-recurring
items) compared with EUR -9.4 million (-6.7 before non-recurring items) last
year. Lower sales due to a poor delivery performance and low prices sales of old
inventory had a negative impact on the margins. A project to reduce costs and
capital tied up in inventory was started during the third quarter, but the
effects had not materialized before year end.
The Board appointed Olli E. Juvonen Managing Director of Exel Sports Oy and Exel
Sports Brands as from 6 November 2007.
CHANGES IN GROUP STRUCTURE
In April 2007 Exel signed an agreement to sell its Plastics operations focusing
on extrusion technology which operated under Exel GmbH in Rohrdorf, Germany. The
operations were sold to a new established company, CPS GmbH, where the former
management of the Plastics business is a co-owner. The business transfer took
place from the beginning of May. By selling the Plastics operations Exel
continues to concentrate on its core business operations, pultrusion and the
production of composite profiles. The sale of business did not directly impact
the Exel Group profit.
CHANGES IN GROUP MANAGEMENT
In July 2007 the Exel Composites was organized in two Business Areas; Europe and
Asia/Pacific. Business Area Europe is headed by Vesa Korpimies. In addition he
maintains his duties as Executive Vice President of the Exel Group. Business
Area Asia/Pacific is headed by Grant Pearce. A new function, Operations, was
also established. It is headed by Callum Gough. Olli E. Juvonen was appointed
Managing Director of Exel Sports Oy and Exel Sports Brands as from 6 November
2007.
The Management Group of Exel has, with the above changes, the following members:
Göran Jönsson, President and CEO; Vesa Korpimies, Executive Vice President and
Business Area Manager Europe; Grant Pearce, Senior Vice President and Business
Area Manager Asia/Pacific; Ilkka Silvanto, Senior Vice President and CFO; and
Callum Gough, Senior Vice President Operations.
SHARES AND SHARE CAPITAL
Exel's share is listed in the Small Cap segment of the OMX Exchange's Nordic
list in the Materials sector.
The Annual General Meeting of Exel Oyj held on 19 April 2007 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 2006.
The AGM amended the Company's Articles of Association to correspond to the new
Finnish Companies Act.
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.
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 17.45 (15.13)
and the lowest EUR 10.55 (10.50). At the end of the year, the share price was
EUR 11.90 (13.60). The average share price during the financial year was EUR
14.14 (12.86).
A total of 4,907,765 (5,172,983) shares were traded during the year, which
represents 41.3% (43.5%) of the average number of shares. On 31 December 2007,
Exel's market capitalisation was EUR 141.6 (161.8) million.
SHAREHOLDERS AND DISCLOSURES
On 31 December 2007, 3.7% 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% of shares at the end of 2007. Other major shareholders
included Ilmarinen Mutual Pension Insurance Company (5.8%) and Berling Capital
Oy (3.5%). At the end of the year the Company had a total of 1,675 (2,197)
shareholders.
During the year under review, Exel received no disclosures under Chapter 2,
section 9 of the Securities Market Act.
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 19 April 2007 the Annual General Meeting appointed Kari Haavisto, Peter
Hofvenstam, Vesa Kainu, Esa Karppinen and Ove Mattsson to continue on the Board
of Directors. Ove Mattsson was re-elected Chairman of the Board.
The Board of Directors convened 13 times in 2007 and the average attendance rate
at these meetings was 95%. The fees paid to the Board of Directors totalled EUR
121 thousand in 2007.
The Board of Directors has reviewed the independence of Board members in
accordance with item 18 of the Corporate Governance Recommendation. The members
of the Board are considered to be independent of the Company. Ove Mattsson, Kari
Haavisto and Vesa Kainu are independent of major shareholders. Peter Hofvenstam
and Esa Karppinen are not independent of major shareholders since Peter
Hofvenstam is the Vice President of Nordstjernan AB and Esa Karppinen is the
Managing Director of Berling Capital Oy.
The Board of Directors has been assisted by a Compensation Committee comprising
Ove Mattsson, Peter Hofvenstam and Vesa Kainu. This committee met 3 times in
2007.
In addition, the Company has a Nomination Committee comprising the Chairman and
persons nominated by the three largest shareholders and the fifth largest
shareholder as of 1 November before the Annual General Meeting. In 2007 the
Nomination Committee comprised Tomas Billing (Nordstjernan AB) as Chairman,
Mikko Mursula (Ilmarinen Mutual Pension Insurance Company), Esa Karppinen
(Berling Capital Oy), Pertti Laine (Veikko Laine Oy) and Ove Mattsson. The
committee met 3 times in 2007.
Furthermore, the Board of Directors has been assisted by an Audit Committee
comprising the Chairman of the Board and Kari Haavisto. The Audit Committee had
2 meetings in 2007.
Ernst & Young, Authorised Public Accountants, with Eija Niemi-Nikkola, APA, as
principal auditor, were elected to serve as Company auditor in the AGM in 2007.
The fees paid to the auditors totalled EUR 383 thousand in 2007.
POTENTIAL RISKS
The main risks in 2008 lie in the market demand and price competition in Exel
Sports Brands and in specific segments in the Exel Composites, i.e. sporting
goods, antenna radomes and wind energy. Signs of recession can be seen
especially in the United States and if it materializes it will have a negative
impact on the sales and earnings development. The restructuring of Exel Sports
Brands segment is ongoing but its success including sourcing from China and the
logistics situation for Exel Sports Brands in Finland is still a risk. There may
as well be a shortage of certain types of carbon fibre. In the long term new
technologies, raw material price compared to competitive materials and overall
global growth rate will create additional threat to the pultrusion business.
For more detailed information on Exel´s risk management, please refer to the
Annual Report.
EVENTS AFTER THE REPORTING PERIOD
In January 2008 Exel announced to commence a co-determination process in the
Mäntyharju unit. The negotiations were finalized late February. As a result the
personnel will be reduced by 13 persons. Additionally a warning was given for
temporary lay-offs which can cover 12 persons at a time.
The Board has today appointed Vesa Korpimies as Exel Oyj's President and CEO. He
will assume his position as of 10 April 2008 when Göran Jönsson resigns. Göran
Jönsson has been nominated to become member of Exel Oyj's Board of Directors.
Vesa Korpimies is currently Executive Vice President of Exel Oyj and Head of
Exel Composites. He has been with the Company since 1987 and responsible for the
development of Exel Composites since 1998 during which period sales have
increased from about EUR 10 million to above EUR 100 million.
OUTLOOK FOR 2008
The global pultrusion market is expected to grow also in 2008, although it may
be affected by a potential worldwide business slow-down. Growth opportunities
for Exel Composites are available in some important segments such as
transportation, building/construction and infrastructure, and new applications
are being sought for continuously. The division will, however, have a weak
development in the important antenna radome business due to new technologies as
well as in wind energy where a change of purchasing pattern will impact the
sales and profitability negatively. Price competition has increased putting
pressure on margins.
The profitability of Exel Sports Brands is highly unsatisfactory. Corrective
actions have been implemented for Exel Sports Brands to mitigate the negative
development. Additional measures will be required to align the organization to
the present sales level, improve the sourcing and reduce costs and capital
employed. The development of Exel Sports Brands will be closely monitored in
2008 and structural alternatives will be assessed.
Due to the development in 2007 and the ongoing restructuring of Exel Sports
Brands it is expected that the sales will not be higher than in 2007, but that
the profitability will be improved.
All in all, Exel expects the profit before taxes to improve in 2008.
BOARD PROPOSAL FOR DIVIDEND DISTRIBUTION
Exel's strategic goals include distributing dividends equal to at least 40% of
the profit for the financial year unless otherwise required by growth and
liquidity.
On 31 December 2007 the parent company's distributable funds totaled EUR 13,465
thousand.
The Board proposes to the Annual General Meeting that a dividend be paid for the
2007 financial year of EUR 0.20 (0.20) per share.
As a basis for its proposal, the Board of Directors has made an assessment of
Exel's financial position and ability to meet its commitments, as well as Exel'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 15 April 2008. If the Annual General
Meeting approves the Board's proposal, it is estimated that dividend payments
will commence on 22 April 2008.
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. | % |
--------------------------------------------------------------------------------
| | 2007 | 2006 | | 2007 | 2006 | |
--------------------------------------------------------------------------------
| EUR thousand | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 28,058 | 30,361 | -7.6 | 113,489 | 112,395 | 1.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 122 | 64 | 90.6 | 854 | 145 | 489.0 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Operating | -25,236 | -28,992 | 13.0 | -103,445 | -106,046 | 2.5 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -2,273 | -794 | -186.3 | -6,118 | -6,108 | -0.2 |
| and impairment | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 672 | 639 | 5.2 | 4,780 | 386 | 1,138.3 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -989 | -331 | -198.8 | -2,360 | -1,067 | -121.2 |
| items | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before | -317 | 307 | -203.3 | 2,420 | -681 | 455.4 |
| tax | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 283 | -325 | 187.1 | -410 | -52 | -688.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | -34 | -18 | -88.9 | 2,010 | -733 | 374.2 |
| for the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders | -34 | -14 | | 2,010 | -724 | |
| of the parent | | | | | | |
| company | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | -4 | | 0 | -10 | |
| interest | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.00 | 0.00 | | 0.17 | -0.06 | |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.00 | 0.00 | | 0.17 | -0.06 | |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.12.2007 | 31.12.2006 | Change |
--------------------------------------------------------------------------------
| EUR thousand | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Goodwill | 9,627 | 10,107 | -480 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,689 | 3,158 | -469 |
--------------------------------------------------------------------------------
| Tangible assets | 14,796 | 18,766 | -3,853 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,521 | 2,200 | 321 |
--------------------------------------------------------------------------------
| Other non-current assets | 76 | 76 | 0 |
--------------------------------------------------------------------------------
| Non-current assets total | 29,710 | 34,307 | -4,481 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 22,155 | 19,975 | 2,180 |
--------------------------------------------------------------------------------
| Trade and other receivables | 18,426 | 20,695 | -2,269 |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in hand | 4,901 | 6,199 | -1,298 |
--------------------------------------------------------------------------------
| Current assets total | 45,482 | 46,869 | -1,387 |
--------------------------------------------------------------------------------
| Non-current assets held for | 0 | 748 | -748 |
| sale | | | |
--------------------------------------------------------------------------------
| Total assets | 75,192 | 81,924 | -6,732 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Share premium reserve | 8,492 | 8,492 | 0 |
--------------------------------------------------------------------------------
| Retained earnings | 10,890 | 14,453 | -3,563 |
--------------------------------------------------------------------------------
| Profit for the period | 2,010 | -724 | 2,734 |
--------------------------------------------------------------------------------
| Equity attributable to equity | 23,533 | 24,363 | -830 |
| holders of parent company | | | |
--------------------------------------------------------------------------------
| Minority share | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | 23,533 | 24,363 | -830 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 21,755 | 25,752 | -3,997 |
--------------------------------------------------------------------------------
| Interest-free liabilities | 345 | 0 | 0 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 753 | 1,091 | -338 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 11,008 | 7,934 | 3,074 |
--------------------------------------------------------------------------------
| Trade and other non-current | 17,799 | 22,782 | -4,983 |
| liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 51,658 | 57,561 | -5,903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 75,192 | 81,924 | -6,733 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| | Share | Share | Share | Retained | Minority | Total |
--------------------------------------------------------------------------------
| | Capita | Issue | Premium | Earnings | Interest | |
| | l | | | | | |
--------------------------------------------------------------------------------
| EUR thousand | | Reserve | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1 | 2,070 | 287 | 5,142 | 19,530 | 10 | 27,039 |
| January 2006 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 71 | -287 | 3,350 | 0 | 0 | 3,134 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | 0 | -458 | 0 | -458 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | 101 | 0 | 101 |
--------------------------------------------------------------------------------
| Dividend | | | | -4,720 | | -4,720 |
--------------------------------------------------------------------------------
| Profit for the period | | | -724 | -10 | -733 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 31st | 2,141 | 0 | 8,492 | 13,729 | 0 | 24,363 |
| December 2006 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1st | 2,141 | 0 | 8,492 | 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 | | | | -2,379 | | -2,379 |
--------------------------------------------------------------------------------
| Profit for the period | | | 2,010 | 0 | 2,010 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 31st | 2,141 | 0 | 8,492 | 12,900 | 0 | 23,533 |
| December 2007 | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 1.1.-31.12 | 1.1.-31.12 | Change |
| | . | . | |
--------------------------------------------------------------------------------
| | 2007 | 2006 | |
--------------------------------------------------------------------------------
| EUR thousand | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities |
--------------------------------------------------------------------------------
| Profit for the period | 2,010 | -733 | 2,743 |
--------------------------------------------------------------------------------
| Adjustments | 9,676 | 9,330 | 346 |
--------------------------------------------------------------------------------
| Change in working capital | -5,903 | 245 | -6,148 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow generated by operations | 5,783 | 8,842 | -3,059 |
--------------------------------------------------------------------------------
| Interest paid | -1,687 | -998 | -689 |
--------------------------------------------------------------------------------
| Interest received | 137 | 195 | -58 |
--------------------------------------------------------------------------------
| Other financial items | -388 | 8 | -396 |
--------------------------------------------------------------------------------
| Income taxes paid | -1,250 | -2,819 | 1,569 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow from operating | 2,595 | 5,228 | -2,633 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities |
--------------------------------------------------------------------------------
| Acquisitions | 0 | -18,279 | 18,279 |
--------------------------------------------------------------------------------
| Disposal of business | 672 | 0 | 672 |
--------------------------------------------------------------------------------
| Capital expenditure | -2,469 | -2,655 | 186 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 1,306 | 0 | 1,306 |
--------------------------------------------------------------------------------
| Other cash flow from investing | 0 | 0 | 0 |
| activities | | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -491 | -20,934 | 20,443 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | |
--------------------------------------------------------------------------------
| Share issue | 0 | 3,134 | -3,134 |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings | 0 | 18,000 | -18,000 |
--------------------------------------------------------------------------------
| Installments of long-term borrowings | -1,600 | -1,991 | 391 |
--------------------------------------------------------------------------------
| Change in short-term loans | 958 | 2,079 | -1,121 |
--------------------------------------------------------------------------------
| Installments of finance lease | -381 | -375 | -6 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2,379 | -4,720 | 2,341 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -3,402 | 16,127 | -19,529 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | -1,298 | 421 | -3,017 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the beginning of | 6,199 | 5,778 | 421 |
| period | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | -1,298 | 421 | -1,719 |
--------------------------------------------------------------------------------
| Liquid funds at the end of period | 4,901 | 6,199 | -1,298 |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| | IV/ | III/ | II/ | I/ | IV/ | III/ | II/ | I/ |
| | 2007 | 2007 | 2007 | 2007 | 2006 | 2006 | 2006 | 2006 |
--------------------------------------------------------------------------------
| EUR thousand | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by segment | | | | | | |
--------------------------------------------------------------------------------
| Exel | 2472 | 25259 | 2757 | 26697 | 27260 | 27691 | 26869 | 23130 |
| Composites | 8 | | 7 | | | | | |
--------------------------------------------------------------------------------
| Exel Sports | 3914 | 3827 | 2166 | 3727 | 4972 | 4475 | 3913 | 5910 |
| Brands | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 2805 | 27912 | 2872 | 28797 | 30361 | 28527 | 27907 | 25600 |
| total | 8 | | 1 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by segment | | | | | | |
--------------------------------------------------------------------------------
| Exel | 3853 | 2556 | 4478 | 4283 | 2790 | 1984 | 2101 | 2075 |
| Composites | | | | | | | | |
--------------------------------------------------------------------------------
| Exel Sports | -300 | -5182 | -176 | -704 | -2311 | -3602 | -1912 | -1573 |
| Brands | 5 | | 0 | | | | | |
--------------------------------------------------------------------------------
| Intra Group | -177 | 547 | -56 | -53 | 160 | 597 | -23 | 100 |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 672 | -2079 | 2662 | 3526 | 639 | -1020 | 164 | 603 |
| profit, total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -989 | -842 | -190 | -340 | -331 | -258 | -327 | -151 |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | -317 | -2921 | 2472 | 3186 | 307 | -1278 | -162 | 452 |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
| Income taxes | 283 | 714 | -526 | -882 | -325 | 258 | 144 | -129 |
--------------------------------------------------------------------------------
| Profit for | -34 | -2206 | 1946 | 2304 | -18 | -1020 | -18 | 3223 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.00 | -0.19 | 0.16 | 0.19 | 0.00 | -0.09 | 0.00 | 0.03 |
| share, EUR | | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.00 | -0.19 | 0.16 | 0.19 | 0.00 | -0.09 | 0.00 | 0.03 |
| share, EUR, | | | | | | | | |
| diluted | | | | | | | | |
--------------------------------------------------------------------------------
| Average number of shares | | | | | | |
--------------------------------------------------------------------------------
| undiluted, | 1189 | 11897 | 1189 | 11897 | 11897 | 11897 | 11873 | 11652 |
| 1000 shares | 7 | | 7 | | | | | |
--------------------------------------------------------------------------------
| Average number of shares | | | | | | |
--------------------------------------------------------------------------------
| diluted, 1000 | 1189 | 11897 | 1189 | 11897 | 11897 | 11897 | 11873 | 11896 |
| shares | 7 | | 7 | | | | | |
--------------------------------------------------------------------------------
| Average | 574 | 569 | 566 | 576 | 556 | 644 | 652 | 518 |
| number of | | | | | | | | |
| personnel | | | | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | |
--------------------------------------------------------------------------------
| Mortgages | 2,783 | 2,953 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other lease liabilities |
--------------------------------------------------------------------------------
| - in next 12 months | 496 | 554 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 2,205 | 2,246 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 876 | 805 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| EUR thousand | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives |
--------------------------------------------------------------------------------
| Forward contracts | 8,372 | 8,269 |
--------------------------------------------------------------------------------
| Purchased currency options | 5,078 | 3,086 |
--------------------------------------------------------------------------------
| Sold currency options | 4,297 | 1,922 |
--------------------------------------------------------------------------------
| Currency swaps | 1,617 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives |
--------------------------------------------------------------------------------
| Interest rate swaps | 333 | 860 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 4,667 | 4,667 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| | 1.1.-31.12. | 1.1.-31.12. | Change % |
--------------------------------------------------------------------------------
| EUR thousand | 2007 | 2006 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 113,489 | 112,395 | 1.0 |
--------------------------------------------------------------------------------
| Operating profit | 4,780 | 386 | 1,138.3 |
--------------------------------------------------------------------------------
| % of net sales | 4.2 | 0.3 | |
--------------------------------------------------------------------------------
| Profit before tax | 2,420 | -681 | 455.4 |
--------------------------------------------------------------------------------
| % of net sales | 2.1 | -0.6 | |
--------------------------------------------------------------------------------
| Profit for the period | 2,010 | -733 | 374.2 |
--------------------------------------------------------------------------------
| % of net sales | 1.8 | -0.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 23,533 | 24,363 | -3.4 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 32,762 | 33,687 | -2.7 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 4,901 | 6,199 | -20.9 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities | 27,861 | 27,488 | 1.4 |
--------------------------------------------------------------------------------
| Capital employed | 56,295 | 58,050 | -3.0 |
--------------------------------------------------------------------------------
| Return on equity, % | 8.4 | -2.9 | |
--------------------------------------------------------------------------------
| Return on capital employed, % | 7.3 | 1.2 | |
--------------------------------------------------------------------------------
| Equity ratio, % | 31.3 | 29.9 | |
--------------------------------------------------------------------------------
| Net gearing, % | 118.4 | 112.8 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 2,469 | 19,863 | -87.6 |
--------------------------------------------------------------------------------
| % of sales | 2.2 | 17.7 | |
--------------------------------------------------------------------------------
| Research and development costs | 2,824 | 2,169 | 30.2 |
--------------------------------------------------------------------------------
| % of net sales | 2.5 | 1.9 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 12,889 | 15,040 | -14.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.17 | -0.06 | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, diluted | 0.17 | -0.06 | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.98 | 2.05 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,830 | |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,847 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 568 | 600 | -5.3 |
--------------------------------------------------------------------------------
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 10 April 2008 beginning at
10.00 am at Kansallissali, Aleksanterinkatu 44, Helsinki, Finland.
FINANCIAL REPORTING IN 2008
The 2007 Annual Report will be published on the Company's website and in printed
format during week 12.
The Group will issue quarterly interim reports on 5 May, 24 July and 30 October
2008.
PRESS CONFERENCE
Exel will hold a press conference regarding the financial statements today
Wednesday 27 February 2008 for the media and analysts at 12.30 am in the Espa
Cabinet of the Scandic Hotel Simonkenttä at Simonkatu 9, Helsinki, Finland.
Vantaa, 27 February 2008
EXEL OYJ Göran Jönsson
Board of Directors President and CEO
Further information:
Göran Jönsson, President, tel. +46 708 43 0110, or email goran.jonsson@exel.fi
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email
ilkka.silvanto@exel.fi
DISTRIBUTION
Helsinki Stock Exchange
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
Helsinki Stock Exchange's Nordic list.