Exel Oyj's financial statements bulletin 2007

EXEL OYJ STOCK EXCHANGE RELEASE 27.2.2008 at 11.00 am 1 (15)

EXEL OYJ’S FINANCIAL STATEMENTS BULLETIN 2007

Summary

- Net sales for the financial year increased to EUR 113.5 (112.4) million or 1.0% over the previous year
- Net sales in the fourth quarter were EUR 28.1 (30.4) million
- Operating profit for the financial year was EUR 4.8 (0.4) million, representing 4.2% (0.3%) of net sales including EUR -5.3 (-6.7) million of non-recurring items
- Operating profit in the fourth quarter was EUR 0.7 (0.6) million or 2.4% (2.1%) of net sales including EUR -1.1 (0.0) million of non-recurring items
- Net operative cash flow was positive at EUR +2.6 (+5.2) million
- Earnings per share for the full year were EUR 0.17 (-0.06), adjusted for full dilution
- The Industry Division, Exel Composites, continued its positive development throughout the year recording its best earnings ever, improving its earnings by 70% and accounting for 88% of the Group sales
- The development of the Sport Division, Exel Sports Brands, was highly unsatisfactory with declining sales and a continued loss
- The Board of Directors proposes a dividend of EUR 0.20 (0.20) per share
- Vesa Korpimies appointed as new President and CEO as of 10 April 2008



Göran Jönsson, President and CEO:

“The Industry Division, now named Exel Composites, has suffered from the slowdown of sales to the sports industry, the wind energy and the antenna radome markets. However, good sales development in other new applications and improved efficiency have had a positive impact on the earnings. The integration of Pacific Composites has been successfully completed, and the acquisition, as per 28 February 2006, has to a large extent contributed to the positive earnings development of Exel Composites, resulting in the best earnings ever for the division. Exel Composites will continue to refine the organization and to intensify the efforts to organically and internationally grow the profitable sales in the prioritized segments.

The Sport Division, also known as Exel Sports Brands, continued to suffer from low sales caused by problems with the flow of products throughout the organization. At the beginning of November 2007, a new managing director was appointed to accomplish a turnaround. During the last quarter heavy measures were taken to align the organization to the present activity level, improve the sourcing and reduce the capital employed in terms of too high inventories. However, it will still require a lot of efforts and strong focus for Exel Sports Brands to return to acceptable profitability.”

Further information:
Göran Jönsson, President and CEO, tel. +46 708 43 0110
Ilkka Silvanto, CFO, tel. +358 50 598 9553