Exel Composites Plc Interim Report for January 1 - June 30, 2009

EXEL COMPOSITES PLC INTERIM REPORT FOR JANUARY 1 – JUNE 30, 2009 January – June 2009 highlights and outlook - Net sales of continuing operations decreased to EUR 37.8 (43.4) million compared to 2008 and were 12.8 per cent lower than for the corresponding period in 2008 - Operating profit was EUR 4.4 million compared to EUR 4.6 million last year (including EUR 0.7 million of non-recurring items), representing 11.6 (10.7) per cent of net sales - Fully diluted earnings per share were EUR 0.30 (-0.31) - Net operative cash flow was positive at EUR +6.2 (+0.4) million - Net gearing continued to improve from 123.9 per cent (year end 2008) to 63.5 per cent - Exel Sports Oy will be merged into Exel Composites Plc in December 2009 - Due to the market uncertainty and poor visibility, Exel will not give any profit guidance April - June 2009 highlights - Net sales of continuing operations were EUR 19.3 (22.4) million, 14.1 per cent below previous year - Operating profit of continuing operations improved 22.8 per cent to EUR 2.4 (1.9 including EUR -0.7 million non-recurring items) million, representing 11.612.4 (108.7) per cent of net sales - Net operative cash flow was positive at EUR +3.2 (+0.5) million - Fully diluted earnings per share EUR 0.16 (-0.30) Vesa Korpimies, President and CEO: “During the second quarter 2009, the impact of the financial crisis has continued, affecting also market demand in the pultrusion business negatively. Our sales in the second quarter of 2009 were 14.1 per cent lower than last year. Especially the machine industry, sports and leisure, paper industry and telecommunication markets were affected. Our sales were relatively good in Europe compared to the situation on the Asian markets, which suffered from tough competition particularly in China. Sales to transportation and general industries, especially defense, markets improved due to new applications. To address declined sales, we continued actions to adjust Exel Composites’ cost base. We maintained a strong emphasis on profitability and operative working capital reduction, safeguarded good cash flow and improved our financial position. The operating profit margin increased to 12.4 (8.7) per cent of net sales. Composites product market demand is uncertain and we have prepared for the weakening trend to continue. We have initiated further actions to control costs to adapt to lower sales volume, to streamline the operating working capital and to amortize debt. We will also continue to have a strong focus on sales to current and new customers.” Further information: Vesa Korpimies, President and CEO, Exel Composites Plc, tel. +358 50 590 6754, or email vesa.korpimies@exel.net Ilkka Silvanto, CFO, Exel Composites Plc, tel. +358 50 598 9553, or email ilkka.silvanto@exel.fi The Interim Report can be read in the attached PDF file.