Exel Composites Plc Interim Report for January 1 - March 31, 2009

EXEL COMPOSITES PLC INTERIM REPORT 7 May 2009 at 9.00 a.m.

EXEL COMPOSITES PLC INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2009

January – March 2009 highlights and outlook

- Net sales of continuing operations decreased to EUR 18.5 (20.9) million in the first quarter of 2009 and were 11.4 per cent lower than for the corresponding period in 2008
- Operating profit was EUR 2.0 million compared to EUR 2.7 million in the first quarter of 20089, representing 10.8 (12.9) per cent of net sales
- Net operative cash flow was positive at EUR +3.0 (-0.2) million
- Fully diluted earnings per share were EUR 0.14 (-0.01)
- Net gearing continued to decrease from 123.39 per cent (year end 2008) to 91.4 per cent
- Exel Sports Brands’ Floorball business transferred to Cape Nordic in March 2009
- Exel Sports Brands will be reported as discontinued operations as of this interim report
- Due to the market uncertainty and poor visibility Exel will not give any profit guidance


Vesa Korpimies, President and CEO:

“During the first quarter 2009, the impact of the financial crisis has continued to escalate, affecting also market demand in the pultrusion business negatively, especially in the building and construction and transportation segments. To address this, actions have been taken to adapt Exel Composites’ cost base. We maintain a strong emphasis on operative working capital reduction to safeguard cash flow and improve financial position.

The restructuring of the Group has now been completed. Exel Sports Brands’ Outdoor business was sold to ESB Sports in June 2008 and the remaining Floorball business was sold to Cape Nordic in March 2009. From this interim report onwards, Exel Composites will report with one segment, Exel Composites. The Annual General Meeting held on 16 April 2009 resolved to change the Company name to Exel Composites Plc in English and Exel Composites Oyj in Finnish. The new name was entered into the Trade Register on 23 April 2009.

The net sales of the Group decreased by 11.4 per cent to EUR 18.5 (20.9) million. The operating profit decreased by 25.7 per cent to EUR 2.0 (2.7) million. However, the strong focus on cash flow generation was productive. Operative cash flow increased to EUR 3.0 (-0.1) million.

By the actions taken we can concentrate on developing our core business Exel Composites. However, market demand is uncertain and we are preparing for the weakening trend to continue. Further actions will be taken to control costs and streamline the operating working capital and to amortize debt.

We will have a strong focus on sales to current and new customers. We will also seek synergies between production sites to ensure critical mass in sales.”

The interim report can be read in its entirety in the attached PDF file.

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