Exel Composites' Financial Statements Release 2020: Strong order intake in Q4 2020, 2021 starts with high order backlog


Q4 2020 in brief 

  • Order intake increased by 5.7% to EUR 33.4 million (Q4 2019: 31.7). 
  • Revenue increased by 3.5% to EUR 27.5 million (26.6). 
  • Adjusted operating profit increased to EUR 2.7 million (1.3), which is 9.9% of revenue (4.9). 
  • Operating profit increased to EUR 2.7 million (1.1), which is 9.9% of revenue (4.1).
  • Earnings per share amounted to EUR 0.09 (0.03).

Q1-Q4 2020 in brief 

  • Order intake increased by 4.2% to EUR 115.4 million (Q1-Q4 2019: 110.7). 
  • Revenue increased by 4.6% to EUR 108.6 million (103.8). 
  • Adjusted operating profit increased to EUR 9.7 million (7.2), which is 8.9% of revenue (6.9). 
  • Operating profit increased to EUR 9.4 million (5.1), which is 8.7% of revenue (4.9).
  • Earnings per share amounted to 0.45 (0.20).

Dividend proposal

The Board of Directors proposes that a dividend of EUR 0.20 (0.18) per share be paid for the financial year 2020.

Guidance for the full year 2021 

Exel Composites expects revenue and adjusted operating profit in 2021 to increase compared to 2020.

President and CEO, Riku Kytömäki

The year 2020 ended strongly for Exel Composites. The adjusted operating profit as well as revenue increased compared to 2019. In addition, our order intake improved, resulting in a strong order backlog driven by an improved underlying demand at the end of 2020. Operating cash flow in 2020 increased compared to the previous year. 

Overall, Exel has so far mitigated the impacts of the Covid-19 pandemic well. The health and safety of our employees, customers and business partners is a priority for Exel Composites. For the most part, operations at our factories were close to normal throughout the year within the limits of the implemented safety measures. Many of our manufacturing units are located far from densely populated areas, which has reduced the impact of the pandemic on the company. Due to preventive and mitigating actions, we have not suffered from significant shortfalls in staffing or materials due to the pandemic. I am particularly happy to see that our strategy based on diversified customer industries and regions has supported us in these difficult times and reduced the impact of the sudden drop of demand that happened with some of our clients. 

In the fourth quarter of 2020, revenue increased driven by Buildings and Infrastructure as well as Defense customer industries. In the full year 2020, the volume increase in Defense and Wind Power made a significant positive contribution to Group revenue. I am very satisfied with these results as they reflect the successful execution of our strategy. Wind Power is one of our strategic focus areas and continues to grow as our largest customer industry. Other strategic focus areas grew too: Camouflage net support poles in the Defense customer industry as well as conductor core applications in the Infrastructure industry are good examples of how extensive R&D over several years yields results. The conductor core application is the outcome of determined long-term product development and a technological break-through that can increase power transmission capacity. The camouflage net support poles, on the other hand, are an example of how we have been able to leverage our global footprint and cross-selling within the Group. These customer industries have remained more or less resilient during the Covid-19 pandemic. Transportation, on the other hand, has clearly been negatively impacted by the pandemic and revenue in the customer industry declined in the fourth quarter as well as in 2020. 

Geographically, revenue increased in the regions Asia-Pacific and Europe in the fourth quarter. In 2020, Asia-Pacific showed strong growth, while revenue in Europe increased slightly. In the region North America, revenue declined across nearly all customer industries in the fourth quarter mainly due to the Covid-19 pandemic.  

Despite the impacts of the pandemic on many fronts, adjusted operating profit increased by 36% in 2020 compared to 2019. In the fourth quarter, adjusted operating profit more than doubled compared to the same period in the previous year. The strong improvement reflects the impact from the cost savings program completed in 2019, an overall favorable sales mix and operational efficiency improvements implemented during the year across the Group. We were also able to leverage our position as a growing global buyer in a materials market weakened by the pandemic.   

2020 will remain in history as an exceptional year in many ways. The pandemic continues to cast a shadow over the global business environment also in 2021 although vaccination programs are expected to relieve the situation. Despite the pandemic, we start 2021 in a good position supported by a high order backlog. I warmly thank our employees for a job well done, and our customers and other stakeholders for outstanding cooperation. Stay healthy and safe, and let’s make 2021 an even better year!

Consolidated key figures

EUR thousand20202019%20202019%
Operating profit2,7321,085151.99,4175,08785.1
% of revenue9.
Adjusted operating profit 1)2,7321,300110.19,7087,16035.6
% of revenue9.
Profit before tax1,507277444.27,1243,88583.4
% of revenue5.
Profit for the period1,098364201.85,3682,397124.0
% of revenue
Shareholders' equity28,88026,3029.828,88026,3029.8
Interest-bearing liabilities43,14037,16316.143,14037,16316.1
Cash and cash equivalents11,9746,93072.811,9746,93072.8
Net interest-bearing liabilities31,16730,2343.131,16730,2343.1
Capital employed72,02163,46613.572,02163,46613.5
Return on equity, %15.55.6179.319.59.2111.4
Return on capital employed, %15.46.9125.114.18.664.5
Equity ratio, %30.230.9-2.430.230.9-2.4
Net gearing, %107.9114.9-6.1107.9114.9-6.1
Net cash flow from operating activities4,6743,45535.314,0069,03055.1
Net cash flow from investing activities -3,277-1,83978.2-12,849-6,087111.1
Capital expenditure3,3211,417134.313,2206,262111.1
% of revenue12.15.312.26.0
Research and development costs86669923.92,8842,8511.2
% of revenue3.
Order intake33,44531,6505.7115,373110,6934.2
Order backlog36,54430,39120.236,54430,39120.2
Earnings per share, diluted and undiluted, EUR0.090.03201.60.450.20123.8
Equity per share, EUR 2.442.239.712.442.239.73
Average share price, EUR5.554.5422.25.554.5422.2
Average number of shares, diluted and undiluted, 1,000 shares11,83011,8200.111,82811,8200.1
Employees, average6746562.76656590.9
Employees, end of period6746484.06746484.0

1) Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and costs related to planned or realized business acquisitions or disposals. 

Financial reporting and Annual General Meeting 2021

Exel Composites publishes the following financial reports in 2021:

  • Financial Statements Release 2020: 18 February 2021
  • Business Review January-March: 30 April 2021
  • Half-year Financial Report January-June: 20 July 2021
  • Business Review January-September: 4 November 2021

The Annual Financial Report, Corporate Governance Statement and Remuneration Report for 2020 will be available on 2 March 2021 at the company’s website www.exelcomposites.com.The Annual General Meeting will be held on 23 March 2021 at 09:00 EET in Exel Composites’ premises at Mäkituvantie 5, 01510 Vantaa, Finland. Shareholders of the company may participate in the meeting and exercise their shareholders’ rights only through a proxy presentative designated by the company as well as by posing counterproposals and questions in advance. Proxy representatives must see to the voting in advance on behalf of shareholders. 

After the Annual General Meeting, on 23 March 2020 at 10:30 EET, Exel Composites will hold an online event for shareholders, where the resolutions made at the General Meeting and the review by the President and CEO will be presented. Instructions to register to this event are presented in the notice to Exel Composites’ Annual General Meeting under Section C item 5 and at the company’s website www.exelcomposites.com.

Financial results briefing

Exel Composites will hold a financial results briefing regarding the Financial Statements Release January-December 2020 on Thursday 18 February 2021 at 12:30 EET. Participation requires registration in advance. 

Vantaa, 18 February 2021

Exel Composites Plc
Board of Directors


Exel Composites' Financial Statements Release 2020