Exel Composites' new vision, strategy and long-term financial targets
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 4.11.2014 at 8.50 a.m.
EXEL COMPOSITES’ NEW VISION, STRATEGY AND LONG-TERM FINANCIAL TARGETS
Exel Composites’ Board of Directors has adopted a new vision, strategy and long-term financial targets. Exel Composites’ business is supported by favorable trends driving market growth, especially in North Asia, North America and Europe.
Newly defined vision states: “Exel Composites is an agile, innovative global composite company with world-class operations providing superior customer experience”. Building on our strengths the Company targets to exceed the market growth. The Company aims at being the global leader in the composite industry based on long-term partnerships, continuous innovations and world-class operations.
Exel Composites’ strategy
The Company’s new growth strategy focuses on accelerating growth in China, penetrating new applications and market segments, creating a true global footprint and growing through new technologies.
Growth in China will be accelerated by expanding the local sales network, R&D and manufacturing capacity, and creating value offering for mid-segment applications to the local market.
Penetrating new applications, increasing vertical integration and packaging applications to systems provide further growth opportunities.
Global footprint will be expanded by increasing sales coverage and growing supply and service to new market areas, including Americas.
Growth in new technologies - composite manufacturing and further processing - allows meeting customer demand better.
The Group will continue to develop the world-class operations to differentiate from competitors. Exel Composites’ focus areas are on-time delivery, efficiency and responsiveness, offering the right quality and stock availability. Exel Composites focuses in its operations on safety and fulfilling strict environmental and sustainability goals. The Group continues to empower functions to drive synergies and opportunities globally, building regional sales and R&D centers.
New long-term financial targets
The new long-term financial targets reflect our new growth strategy. Exel Composites targets to be a growing, profitable and capital efficient company. Our new targets are:
Growth: Turnover growth 2x average market growth
Profitability: Operating profit margin over 10 per cent of net sales
Capital efficiency: Return on capital employed over 20 per cent
Financial targets are considered over a business cycle. Acquisitions are targeted to boost growth and to cover market and technology white spots. Acquisitions will influence overall growth and profitability targets.
Exel Composites aims to distribute some 40 per cent of net income in dividends, as permitted by the financial structure and growth opportunities.
The previous long-term financial targets over a business cycle were the following:
Growth: Average organic growth annually to exceed market growth of the industry
Operating profit: Operating profit over 10 per cent of net sales
Dividend policy: At least 40 per cent of net income distributed in dividends, as permitted by the financial structure and growth opportunities.
Vantaa, 4 November 2014
EXEL COMPOSITES PLC
President and CEO
Riku Kytömäki, President and CEO, tel. +358 50 511 8288, or email firstname.lastname@example.org
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email email@example.com
NASDAQ OMX Helsinki Ltd.
Main news media
Exel Composites in brief
Exel Composites (www.exelcomposites.com) is a leading composite technology company that designs, manufactures and markets composite products and solutions for demanding applications. Exel Composites provides superior customer experience through continuous innovation, world-class operations and long-term partnerships.
The core of the operations is based on own, internally developed composite technology, product range based on it and strong market position in selected segments with a strong quality and brand image. Profitable growth is pursued by a relentless search for new applications and development in co-operation with customers. The personnel’s expertise and high level of technology play a major role in Exel Composites’ operations.
Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX Helsinki Ltd.