Slide 1: Peter Rosén, Acting CEO and CFO
Peter Rosén Acting CEO and CFO July 17 2020
Slide 2: Q2 2020 Presentation
Q2 2020 Presentation Presented by Agenda • Business Performance • Financial Overview • Cost reductions • Q&A Peter Rosén Acting CEO and CFO
Slide 3: Q2 2020 Key Highlights
Q2 2020 Key Highlights • Covid -19 • All sites up and running, focus on maintaining health of employees • No major supply or delivery issues • As expected and communicated earlier, we saw considerably lower demand during the quarter - April and May especially low while June improved • Lower sales an
Slide 4: Q2 2020 Financial Highlights
Q2 2020 Financial Highlights Covid-19 had significant impact Net Sales Adjusted Operating Profit* Adjusted Operating Margin* Adjusted Earnings Per Share* MSEK MSEK % SEK -31% -62% -45% -66% 15,0% 1,20 3 685 551 2 526 8,3% 209 0,41 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 * Excluding restructu
Slide 5: Q2 2020 Sales Development
Q2 2020 Sales Development Sales decrease driven by Covid-19 Regional Development Sales development MSEK EUROPE -31% 39% +8% -39% +0% 55% -32% ASIA -33% 3 685 6% -11% AMERICAS 2 526 Q2'19 Acquisitions Organic FX Q2'20 Share of HEXPOL sales Sales development vs same period LY
Slide 6: YTD Q2 2020 Sales Development
YTD Q2 2020 Sales Development Sales decrease primarily driven by Covid-19 Regional Development Sales development MSEK EUROPE -11% 36% +11% -24% +2% 59% -17% ASIA 7 490 -6% 5% 6 694 -6% AMERICAS YTD Q2'19 Acquisitions Organic FX YTD Q2'20 Share of HEXPOL sales Sales development vs same period LY
Slide 7: Q2 Financial Overview
Q2 Financial Overview Results affected by Covid-19 but strong financial position Key figures YTD YTD Highlights MSEK Q2'20 Q2'19 Q2'20 Q2'19 Sales 2 526 3 685 6 694 7 490 • Adjusted EBITA margin 9,1% EBITA, excl. non-recurring items 229 566 836 1 173 • Non-recurring items of 26 MSEK EBITA margin, ex
Slide 8: Q2 Adjusted Operating Profit
Q2 Adjusted Operating Profit Adjusted Operating Profit* Highlights MSEK • Lower sales impacted operating profit negatively -62% • Significant costs savings during the quarter in both direct production costs and 551 OPEX • OPEX on same level as last year despite acquisition of Preferred Compounding -
Slide 9: Q2 HEXPOL Compounding
Q2 HEXPOL Compounding Net Sales Adjusted Operating Profit* Highlights MSEK MSEK • Sales decrease due to both country lockdowns and -33% -66% industry shutdowns driven by Covid-19 • Both Europe and Americas showed lower sales to most customer segments, main negative impact with 3 418 automotive and g
Slide 10: Q2 HEXPOL Engineered Products
Q2 HEXPOL Engineered Products Net Sales Operating Profit Highlights MSEK MSEK • Somewhat lower sales with smaller -12% -11% movements within the product groups • Stable margins 267 236 35 31 Q2'19 Q2'20 Q2'19 Q2'20
Slide 11: Q2 Working Capital
Q2 Working Capital Continuous improvement after acquisition driven peaks MSEK 1 600 9,2% Highlights 1 400 9,0% • Working capital improved in absolute 8,8% terms compared to same period last year 1 200 8,6% • Working capital in relation to sales 1 000 8,4% improves after acquisitions with higher work
Slide 12: Q2 Cash Flow
Q2 Cash Flow Stable cash generation Cash Flow Highlights MSEK • Working capital relatively flat during second quarter of 2020 • Level of investments below depreciation 13 0 93 • EBIT is largely translated into cash 225 -64 183 IT al ts ts lo w EB … p it s se en F io n& gc a da s tm sh i at k in fix
Slide 13: Q2 Net Debt
Q2 Net Debt Strong financial position 30 June 30 June 31-dec Highlights MSEK 2020 2019 2019 • Strong cash position Cash at hand 1 134 1 738 1 624 • Strong Net debt/EBITDA ratio Used credit facilities -2 912 -3 163 -4 000 Net debt -1 778 -1 425 -2 376 Net debt/EBITDA* 0,85 0,57 0,95 * EBITDA is R12 m
Slide 14: Cost Savings
Cost Savings Employees Current run rate of direct labor costs is down 25% compared to first quarter 2020 Some 500 employees are currently on various forms of short time work and furlough In addition, 227 employees left the company during second quarter Costs Current run rate of OPEX is down some 14%
Slide 15: Q2 2020 Summary
Q2 2020 Summary • Covid -19 • All sites up and running, focus on maintaining health of employees • No major supply or delivery issues • As expected and communicated earlier, we saw considerably lower demand during the quarter - April and May especially low while June improved • Lower sales and resul
Slide 16: Q&A
Q&A @ HEXPOL
Slide 17: Thank You
Thank You www.HEXPOL.com @ HEXPOL