EXEL OYJ STOCK EXCHANGE RELEASE 18.2.2003 at 9.00 1 (5)
EXEL GROUPS FINANCIAL RESULTS FOR 2002
SUMMARY
- Net sales grew by 4% to EUR 51.2 million
- Operating profit amounted to EUR 3.8 (5.3) million
- Earnings per share amounted to EUR 0.42 (0.64)
- Dividend proposal of EUR 0.20 per share, 47.6% of earnings per share
- Industry continued to grow, up 15%
- Cash flow from business operations after investments EUR 4.0 (0.1)
million
NET SALES AND PROFITS
The Groups net sales during the year under review totalled EUR 51.2
(49.4) million. The Groups operating profit declined to EUR 3.8 (5.3)
million.
Financial expenses grew slightly on the previous year and were EUR 0.7
(0.5) million. Profit after financial items amounted to EUR 3.8 (4.8)
million.
INDUSTRY
The Industry divisions net sales grew by 15% to 25.1 (21.9) million.
The growth arose from the acquisition of Menzolit-Fibrons pultrusion
operations in September 2001. The market situation was tight
throughout the year and many decisions to implement customer projects
were delayed.
Several new product applications were developed in 2002, the most
significant of which related to doctor blades, as well as new
applications for the offshore and windmill industries.
The Industry divisions operating profit was EUR 2.7 (3.3) million.
Profitability was curbed by tightening competition and price pressures
caused by the sluggish market, as well as costs caused by product
modifications and the integration of Menzolit-Fibrons pultrusion
operations.
SPORT
The Sport divisions net sales declined by 5% to EUR 26.1 (27.4)
million on the previous year. The market situation was challenging
throughout the year. The decrease was mainly caused by the decline on
the global water sports market. Nordic Walking grew significantly in
certain Central European markets and the first positive signs of an
increase in sales were seen in the autumn.
As a part of the new NFS (Nordic Fitness SportsTM) concept a fitness
ski collection was launched in Finland under the Exel brand at the end
of the year. The initiative is supported by a limited fitness wear
collection under the ODLO and Bjorn Daehlie brands.
The Sport divisions operating profit declined on the previous year
and was EUR 1.1 (2.0) million. Profitability was curbed by decreased
2 (5)
sales volumes, but was improved by a project to enhance efficiency in
production, as well as fixed-term layoffs of employees.
FINANCING AND CASH FLOW
The Groups financial position strengthened strongly during the last
quarter when capital rationalisation measures yielded results. Cash
flow from business operations after investments was EUR 4.0 million
(0.1).
The Groups interest bearing net liabilities decreased on the previous
year and came to EUR 8.3 (10.6) million at the end of the year.
Solvency ratio is still at a good level at 47% (43%) and gearing is
55% (73%).
INVESTMENTS AND R&D
Consolidated investment remained at a low level and amounted to EUR
2.0 (5.5) million. Only investments related to collections and R&D, as
well as maintenance investments were carried out. The difference in
investment levels between 2001 and 2002 is mainly due to the
acquisition of Menzolit-Fibrons pultrusion operations in 2001.
R&D expenses amounted to EUR 1.1 (1.2) million or 2.2% (2.5%) of net
sales. The main projects related to the development of new customer
applications and testing of new resin and reinforcement materials to
improve production efficiency.
PERSONNEL
At the end of 2002 the personnel numbered 359 (371). The average
number of people employed by the Group was 374 (356). Fixed-term
layoffs lasting 17 days concerning 33 employees in the Sport
divisions Finnish operations were carried out in the autumn.
SHARE PRICE DEVELOPMENT AND OWNERSHIP STRUCTURE
The share price range was between EUR 5.25 and 10.05. At the end of
the year the share price was EUR 6.38. During the period under review
13.1% of the whole share capital was traded. During the financial
period the average share price was EUR 8.00, while in 2001 it was EUR
10.87. On December 30, 2002 Exels market capitalization was EUR 33.8
million. The President and the members of the Board of Directors own
1.9% of the total share capital.
Exel has two outstanding warrant programmes issued in 1998 and 2001
respectively. The subscription of the first part (A) of the 1998
warrant programme commenced on 1 October 2000, whilst the second part
(B) on October 1, 2002. The personnel have the right to subscribe a
total of 263,100 shares. 41,400 shares had been subscribed by the end
of 2002. The subscription of the first part (A) of the 2001 warrant
programme commenced on June 1, 2002. The personnel have the right to
subscribe a total of 181,000 shares. No shares had been subscribed by
the end of 2002.
As of December 30, 2002, Exel had the following principal
shareholders:
3 (5)
Shareholder Number of Percentage of
shares shares and votes
Nordstjernan AB 1,748,253 33.0
Metso Capital Oy 650,000 12.3
Ilmarinen Mutual Pension
Insurance Company 503,000 9.5
Varma-Sampo Mutual Pension
Insurance Company 256,800 4.9
Aktia Secura Investment
Fund 201,000 3.8
Oy Lindell Ab 160,800 3.0
Renkkeli Oy 140,400 2.7
Sumato Oy 111,700 2.1
Suomi Mutual Insurance
Company 100,000 1.9
Jokelainen Ari 81,700 1.5
Nominee registration 17,250 0.3
Other 1.323,997 25.0
TOTAL 5,294,900 100.0
DISTRIBUTION OF PROFIT
Exel Oyjs distributable funds are EUR 10,479,367.48. The Groups
distributable funds are EUR 9,928,750.88. Exel Oyjs Board of
Directors will propose to the Annual General Meeting that a dividend
of EUR 0.20 (0.35) per share be paid for the year 2002, i.e. EUR
1,059,860 or 47.6% of the Groups earnings per share. The remainder,
EUR 9,419,507.48, will be retained and carried forward. The record
date for the payment of dividend is April 15, 2003 and the date for
the payment of dividend is April 24, 2003.
CORPORATE GOVERNANCE
The Board reviewed and amended its corporate governance policy and
guidelines during 2002. New guidelines will be adopted in spring 2003.
INTERIM REPORTS IN 2003
The Group will issue quarterly interim reports on May 12, 2003, July
22, 2003 and November 4, 2003 respectively.
PROSPECTS FOR 2003
The outlook for 2003 is currently difficult to assess. The markets are
expected to be tough during at least the first half of the year.
Ongoing efficiency improvement programmes within the Group are
expected to result in cost reductions. Projects to enhance
productivity in the Finnish factories are proceeding as planned and
measures will be taken to improve the profitability of the German
production units. Exel estimates that the overall market conditions in
the first quarter of 2003 will be essentially the same as in the
fourth quarter of 2002.
4 (5)
CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 2002 2001 change %
Net sales 51,203 49,362 4%
Operating profit 3,802 5,300 -28%
Financial income and expenses -655 -520 26%
Profit after financial items 3,147 4,780 -34%
Profit before income taxes 3,147 4,780 -34%
Taxes -921 -1,416 -35%
Profit for the year 2,225 3,364 -34%
BALANCE SHEET (EUR 1,000) 2002 2001 change %
Intangible assets 3,922 4,432 -12%
Tangible assets 10,636 11,423 -7%
Investments 127 127 0%
Inventories 7,962 7,903 1%
Receivables 6,635 7,487 -11%
Money in hand and at bank 2,525 1,934 31%
Share capital 1,853 1,840 1%
Other shareholders equity 13,086 12,560 4%
Non-current liabilities 6,329 8,506 -26%
Current liabilities 10,538 10,400 1%
Balance sheet total 31,807 33,306 -5%
FUNDS STATEMENT 2002 2001 change %
Cash flow from business operations 5,994 6,342 -5%
Investments in tangible and
intangible assets -2,077 -6,337 -67%
Income from surrender of tangible
and intangible assets 57 61 -7%
Withdrawals of non-current loans 71 3,627 -98%
Repayments of non-current loans -2,240 -1,838 22%
Withdrawals of/repayments of
current loans 473 1,489 -68%
Dividend paid -1,840 -1,991 -8%
Other 153 10 1430%
Change in liquid funds 591 1,363 -57%
INDICATORS 2002 2001 change %
Earnings per share, EUR 0.42 0.64 -34%
Earnings per share, EUR (diluted) 0.41
Equity per share, EUR 2.82 2.72 4%
Dividend per share, EUR x) 0.20 0.35 -43%
Return on equity (ROE), % 15.2 24.6 -38%
Return on investment (ROI), % 14.3 21.9 -35%
Solvency ratio, % 47.2 43.3 9%
Gearing, % 55.3 73.3 -25%
Gross investment (EUR 1,000) 2,014 5,474 -63%
% of net sales 4% 11%
Personnel at year end 359 371 -3%
Average personnel 374 356 5%
5 (5)
Order book as of Dec. 31 (EUR, 1000)7,564 8,918 -15%
x) Board of Directors proposal for 2002
CONTINGENT LIABILITIES 2002 2001
Liabilities for which a corporate
mortgage and real estate mortgages
have been provided as collateral
Financial institution loans 10,231 11,673
Mortgages given on land and
buildings 2,954 2,954
Corporate mortgage given 12,500 12,500
Collateral for Group companies
Credit limit guarantee 389 140
NET SALES BY MARKET AREA 2002 2001
Finland 12,522 13,504
Other Nordic countries 6,513 5,241
Rest of Europe 28,674 26,415
North America 2,326 3,370
Other countries 1,169 832
Total 51,203 49,362
Mäntyharju, February 18, 2003
EXEL OYJ
Board of Directors Ari Jokelainen
President
Further information:
Ari Jokelainen, President, Exel Oyj, telephone +358 50 590 6750
Markku Herranen, CFO, Exel Oyj, telephone +358 50 590 6758
www.exel.net