Exel Composites Plc's financial statements release 2009

EXEL COMPOSITES PLC’S FINANCIAL STATEMENTS RELEASE 2009 January-December 2009 highlights and outlook for 2010 - Net sales from continuing operations for the financial year decreased to EUR 70.0 (84.9) million, down by 17.6 per cent on the previous year - Operating profit from continuing operations for the financial year was EUR +8.0 million including net reversal of the restructuring provisions and other non-recurring items of EUR +1.2 million (EUR +8.6 million including EUR -0.7 million non-recurring items), or 11.4 (10.1) per cent of net sales - Net operative cash flow was positive at EUR +14.2 (+11.1) million - Fully diluted earnings per share for the full year were EUR 0.56 (-0.25), of which continuing operations EUR 0.50 (0.34) - The Board of Directors proposes that a dividend of EUR 0.25 (0.00) be paid for the financial year 2009 - Due to the market uncertainty and poor visibility, Exel will not give any profit guidance October-December 2009 highlights - Net sales from continuing operations in the fourth quarter of 2009 were EUR 16.2 (20.5) million - Operating profit from continuing operations in the fourth quarter of 2009 was EUR +2.4 million including net reversal of the restructuring provisions of EUR +0.7 million (EUR +2.2 million), or 14.5 (10.6) per cent of net sales - Fully diluted earnings per share were EUR 0.18 (-0.01), of which continuing operations accounted for EUR 0.15 (0.05) Vesa Korpimies, President and CEO: “The recession continued to impact the pultrusion markets in 2009. Sales decreased in almost all our geographical markets. Exel took robust actions to deal with the economic down-turn. The main objective was to protect the financial fundamentals and the business in order to ensure stability. We reinforced the focus on the core composite business and divested Exel Sports Brands’ Floorball business in March 2009. We prioritized cash flow and implemented measures to improve cash management and reduce working capital, as well as to prioritize capital spending. This resulted in a strong cash flow of EUR 14.2 million. The net debt of the Group was reduced from EUR 20.7 million to EUR 6.1 million and gearing was improved from 123.9 per cent to 23.7 per cent. We initiated actions to cut costs and to improve efficiency resulting in a substantial reduction of annual fixed costs. We invested in sales activities in order to protect the top line. Total earnings per share improved significantly in 2009. Earnings per share for continuing operations improved to EUR 0.50 (0.34) and for discontinued operations to EUR 0.06 (-0.59). The major contributors were the restructuring of the Group including the divestment of Exel Sports Brands and favorable foreign exchange rate development. Return on investment improved from 0.0 per cent to 20.9 per cent. Small signs of market recovery could be seen during the latter part of the year. Sales to general industries, especially defense, improved due to new applications. New, innovative applications were developed also in the building, construction and infrastructure market. We also see many interesting opportunities relating to new energy regulations. Furthermore, long-term agreements were signed in the electrical industry. We maintain a cautious stance on the world economy and expect the challenging market environment to continue also in 2010. We will continue our focus on sales and on developing new applications with our customers. Economic uncertainty calls for prudent house-keeping, hence productivity improvements and cost efficiency remain our priorities also in 2010. We have a strong financial position and we are well prepared to take advantage of the challenging business environment and the growth opportunities as the markets gradually recover.” The financial statements release can be read in full in the attached PDF file. Further information: Mr. Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email vesa.korpimies@exelcomposites.com Mr. Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email ilkka.silvanto@exelcomposites.com