Exel Composites is hosting a Capital Markets Day in Helsinki today. During the event Exel introduces its long-term Group targets including updated financial and new sustainability targets.

On 2 October 2023, Exel Composites announced a transformative strategy to become a more integrated designer and manufacturer of pultruded composite solutions for volume and customer-specific applications. The strategy is based on four pillars: (i) to capture organic profitable growth from large and fast-growing applications driven by decarbonization and sustainability, (ii) focus on increasing customer value by helping customers choose composites for their applications by offering engineering support, productization and post-processing, and (iii) reorganizing Exel for profitability and (iv) high ambition and rigorous execution.

Exel is dividing the strategy period into two phases. The phase of stabilization and profitability starts in 2024, after which Exel will move into a growth phase. The stabilization and profitability phase includes actions such as implementation of a new simplified operating model of two distinct business units, factory network review, driving efficiency through its operations and development of more standardized offering for select applications. During the growth phase Exel will leverage its advantages in both tailored and volume applications to further increase profitability by fully utilizing its production assets and the benefits from the updated sales model.

Long-term Group targets

On 2 October 2023 Exel published its targets for revenue and profitability. Financial position has been added as a third financial target. Exel has now also established sustainability targets regarding zero harm, environmental responsibility and employee engagement. The new Group targets are presented in the table below.

Organic growth Over EUR 200 million annual revenue by
2028
Profitability Double digit adjusted operating profit
margin by 2028
Financial <3x Net debt/ adjusted EBITDA by 2028
position
Zero harm No lost time incidents (LTI)
Environmental Greenhouse Gas (scope 1 and scope 2)
responsibility reduction according to UN established
targets

Zero landfill by 2028

100% of research having positive
sustainability impact
Employee Employee NPS score year-on-year
engagement improvements based on baseline 2024

The required financing need for the transformation, business growth and working capital are expected to be in the range of EUR 20-25 million during the strategy period of five years.

Historical adjusted EBITDA and Net debt to adjusted EBITDA figures

Thousand EUR Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Net debt 38,202 39,101 37,595 31,101 34,509 31,050 32,652
Adjusted 3,920 4,891 3,652 2,686 1,768 1,788 504
EBITDA
Net 3.1 3.0 2.5 2.1 2.7 3.1 4.8
debt/adjusted
EBITDA*

*Last 12 months' adjusted EBITDA.

Capital Markets Day 2023

Exel Composites is arranging a Capital Markets Day for investors and analysts today at 13:00-16:00 EET. Capital Markets Day can be followed online by registering at: https://exelcomposites.videosync.fi/2023-cmd/register. A recoding of the event and the presentations will be available on Exel Composites IR pages after the event.

For further information, please contact:

Sanna Ahvenniemi, Head of Investor Relations, tel. +358 40864 3000, sanna.ahvenniemi@exelcomposites.com

Exel Composites in brief

At Exel Composites, we use over 60 years' experience to solve challenges and help customers save resources. Our forward-thinking composite solutions made with continuous manufacturing technologies serve customers in a wide range of industries around the world. You can find our products used in applications from wind power and transportation to building and infrastructure.

Our collaborative approach and global footprint set us apart from our competition. We use our expertise to help customers reduce weight, improve performance and energy efficiency and decrease total lifetime costs. We want to be the first choice for sustainable composite solutions globally.

Headquartered in Finland, Exel Composites employs approximately 650 forward-thinking professionals around the world and is listed on Nasdaq Helsinki. To find out more about our offering and company please visit www.exelcomposites.com.

Exel Composites Plc