President and CEO Riku Kytömäki

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Revenue and operating profit increased

Business Review Q1-Q3 2020

In the third quarter of 2020, we were able to increase our revenue and operating profit despite the impacts of the continued Covid-19 pandemic on the global business environment. A few customers requested to postpone deliveries of current orders, which impacts timings of revenues and profits. The underlying demand across all customer industries has, however, slightly improved. Order intake in the quarter landed below last year mainly due to a partial cancellation of a large order in the United States, that was booked in the first quarter of 2020.

Revenue increased compared to the previous year in Wind power and Defense customer industries and especially in the Asia-Pacific region. Revenue in the Buildings and infrastructure as well as the Transportation customer industries declined mainly due to Covid-19 related lower demand mostly in Europe.

Operating profit in the third quarter increased compared to the same period last year. Despite revenue growth on Group level, profitability was negatively impacted by the uneven distribution of revenues across business units. Together with effects of the Covid-19 pandemic, this impaired production efficiency and profitability, especially in the business unit in the United States.

The construction project of the new manufacturing facility in Austria progressed as planned and we reached roof height in the third quarter. At the same time, we have tightened Covid-19 related safety measures across the Group and continue to monitor the situation very closely.

This year we are celebrating Exel’s 60th anniversary. Despite the challenging circumstances in 2020, we have been able to execute our strategy successfully. The anniversary is also a good time to reflect on who we are and where we are headed as company, our purpose and vision.

In the long-term, global megatrends, sustainability and total life cycle approach, further increase composite demand. We firmly believe in the benefits of composites and use our expertise to solve challenges making solutions that are lighter, stronger, stiffer, longer and reaching higher. By using composites, we also save resources. This is why we exist. We want Exel to be the first choice for sustainable composite solutions globally.