Investing in Exel Composites
Five reasons to invest in Exel Composites
We operate in growth markets
Global megatrends such as urbanization, demographic change, sustainability and total life cycle cost management increase the demand for composite materials. There are new business opportunities, technologies and applications in all Exel’s customer segments and market areas.
Decades of experience and technological expertise
Firm focus on innovation and our internally developed composite technology is continuously perfected. We have gained our expertise in composites over decades of experience.
Wide-spread customer base over segments and markets
Wide-spread customer base reduces the risk of big volume swings. We have long-term partnerships with our customers and there is a high level of loyalty among our stronghold customers, Exel often being the single source for composites.
Clear long-term financial targets and a strategy
Our target is to be a growing, profitable and capital efficient company. Our strategy is based on five pillars - 1) protecting and growing our stronghold customers, 2) build leadership in China, 3) creating true global footprint, 4) new composite technologies, and 5) penetrate growing/new applications
We are globally local
We are a world-wide player with the capability to consolidate a fragmented market. In addition to sales representatives in multiple locations around the globe, we have manufacturing facilities in six countries.
Exel Composites in the value chain
President and CEO, Riku Kytömäki
Revenue in the first quarter of 2020 increased compared to the same period the previous year. Growth was supported by significantly increased volumes in two customer industries in particular, Defense as well as Equipment and other industries. Revenue also increased in Buildings and infrastructure, Machinery and electrical and Wind power customer industries. Business volumes in Telecommunications continued to decline. Geographically, revenue in the regions Asia-Pacific and Europe increased compared to previous year, while in region North America’s revenue declined. To increase transparency and support stakeholder understanding, as of the first quarter 2020, we will report revenue distribution on an increased number of customer industries. From now on, we will report the revenue split on a quarterly basis.
Exel Composites operates worldwide in the composites market, serving customers in several different customer industries.
According to industry associations, such as JEC and Lucintel, composites represent only 1% of the global materials market, which is dominated by steel, plastic and aluminum. Furthermore, pultruded composites market, with an estimated size of 3 billion dollars, represents less than 5% of the total composites market. Exel Composites sees growth potential for composites as a material as well as for pultrusion as a production technology within the composites market.
Annual growth rate estimated for the global composites market vary, according to industrial segment, market area and source, between approximately 2%-5% during 2018-2023.
Transportation, including aerospace, is currently the largest market in terms of value, while energy industry shows the strongest growth. Geographically, Asia is the largest and the fastest-growing market globally. China alone is expected to represent over half of the global growth. The North-American market is the second largest composites market globally in terms of value and growth. Growth is expected to be slower in the mature European market, which already today is behind Asia and North-America in size.
Interest towards composite materials is steadily growing, supported by global megatrends.
Growing middle class
Cost and energy efficiency
Long life cycles
The composites market is fragmented. Whereas Exel Composites is not a large company, it is nevertheless a leading player and the only pultrusion company with significant presence on all major markets: Europe, Asia and North America. This global presence differentiates Exel from other pultrusion companies and enables head to head competition with global suppliers of traditional materials.
Exel Composites estimates that during 2019 the company’s market position within the global pultrusion market has improved. Exel’s revenue has increased particularly in the North American market where the company has been physically present since the acquisition of Diversified Structural Composites, DSC, in April 2018.
Exel Composites’ customer base is wide-spread over several segments and markets, which means that also its competitors are found within specific segments and markets rather than across. Some of the main competitors include for example Fiberline from Denmark, Epsilon from France as well as Creative Pultrusion and Strongwell in the United States.