Exel Composites (EXEL) Status Update summary

Strategy priorities

• Strategy centers on organic growth in energy transition and decarbonization applications, increasing customer value, improving profitability and raising execution ambition.

• Composite demand is expected to benefit from lightweight, strong, insulating, corrosion-resistant materials with longer lifetimes amid climate, sustainability, urbanization and energy-efficiency trends.

• Aim to become customers’ first choice for sustainable pultruded composite solutions.

Customer offering and operating model

• Increase customer support and responsiveness through standardized offerings with options, defined product platforms, wider post-processing capabilities and sustainable-materials research.

• Organize into two business units, Volume and Tailored Applications, replacing the current seven; align factories to unit needs with global supply capability.

• Volume Applications will focus on large known customers, key-account sales, dedicated factories and fewer, higher-volume product variants; Custom Applications will use regional sales and standardized composite solutions.

• Review the factory network, move toward larger focused units, improve high- and low-volume manufacturing efficiency, and pursue procurement savings; three sites are under strategic review.

Growth initiatives and targets

• Wind turbine components are identified as the fastest-growing pultrusion application; a dedicated production facility in India is being built for production during 2024.

• Local wind-customer test runs and qualifications were progressing as planned, with negotiations ongoing with several OEMs and raw-material providers for glass- and carbon-fiber products.

• Target over €200 million in annual revenue and a 10% adjusted operating profit margin within five years.