Slide 1: Georg Brunstam CEO, Peter Rosén CFO
Georg Brunstam CEO Peter Rosén CFO April 28, 2022 1 A Material Difference
Slide 2: Q1 2022 Presentation
Q1 2022 Presentation Presented by Agenda • Business Performance • Theme - almaak Georg Brunstam • Financial Overview CEO • Focus for 2022 • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Record sales and result in a challenging environment
Record sales and result in a challenging environment • Record sales and record quarterly result • Strong sales in all regions and product segments, especially so in the Americas • Strong business model where price increases on raw material are passed on • EBIT 775 MSEK (704) – Q4 2021 628 MSEK • Con
Slide 5: Overall strong performance despite challenges
Overall strong performance despite challenges • HEXPOL Compounding • Strong sales in all regions and product areas, especially strong in the Americas • Strong sales in most customer segments • Automotive negatively affected by disturbances from semi conductor shortages and lack of cable harnesses in
Slide 6: Strong Culture Delivering
Strong Culture Delivering We create a material difference Purpose The positive impact of what we do Vision Our long-term objective The preferred solutions provider for sustainable polymer applications Mission What we do daily We engineer high-quality polymer solutions which improve customer applicat
Slide 7: Almaak - Acquisition in line with strategy and sustainability
Almaak - Acquisition in line with strategy and sustainability • German company founded in 2008 • Head office and main plant in Krefeld north of Dusseldorf with the second plant in Doki, south of Berlin with some 190 employees in total • Specialist in high quality recycled (some 80%) engineered polym
Slide 8: Q1 Sales Development
Q1 Sales Development Strong sales growth despite market challenges Regional Development Sales development MSEK EUROPE +36% 41% 54% +43% ASIA +6% +31% 5% +20% +27% AMERICAS Share of HEXPOL sales Sales development vs same period LY 8 A Material Difference
Slide 9: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 10: Q1 Financial Overview
Q1 Financial Overview Strong result despite significant challenges Highlights • High sales at 5 173 MSEK, an increase of 36% • Operating Profit of 775 MSEK, an increase of 10% • Operating Margin of 15,0%, negatively impacted by acquisitions and raw material shortages and prices • Strong Equity/Asset
Slide 11: Q1 Financial Highlights
Q1 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % +36% +10% -19% 5 173 775 18,5% 704 3 810 15,0% Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 11 A Material Difference
Slide 12: Q1 Operating Profit
Q1 Operating Profit Higher sales partly offset by lower margin of acquisitions and raw material challenges Operating Profit Highlights MSEK • Strong sales • As previously communicated, negative +10% impact on gross margin from acquisitions • Further negative impact on gross margin from continuously
Slide 13: Q1 HEXPOL Compounding
Q1 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Strong sales increase vs LY primarily driven by +36% +10% -19% organic growth of 20% and acquisitions 7% but also positive FX effects 4 841 • The higher sales were driven by improvements 721 in most customer segme
Slide 14: Q1 HEXPOL Engineered Products
Q1 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales well above last year +27% +17% -7% • Overall strong performance but especially HEXPOL Wheels performed well 332 • Operating Profit well above LY 262 54 • Lower Operating Margin affected by 46 higher
Slide 15: Q1 Working Capital
Q1 Working Capital MSEK Highlights 2 000 12,0% • Increased working capital primarily driven 1 800 by decision to increase inventory level in 10,0% 1 600 the face of global raw material shortages 1 400 8,0% 1 200 1 000 6,0% 800 4,0% 600 400 2,0% 200 0 0,0% Q1'21 Q2'21 Q3'21 Q4´21 Q1´22 WC WC/Sales 15
Slide 16: Q1 Cash Flow
Q1 Cash Flow Cash Flow MSEK Highlights • Soft cash flow in the quarter, negatively impacted by higher inventory levels • Level of investments below depreciation 16 A Material Difference
Slide 17: Q1 Net Debt
Q1 Net Debt Strong financial position Highlights • Very strong cash position • Strong Net Debt/EBITDA ratio 17 A Material Difference
Slide 18: Record sales and result in a challenging environment
Record sales and result in a challenging environment • Record sales and record quarterly result • Strong sales in all regions and product segments, especially so in the Americas • Strong business model where price increases on raw material are passed on • EBIT 775 MSEK (704) – Q4 2021 628 MSEK • Con
Slide 19: Focus for 2022
Focus for 2022 @ HEXPOL A Material Difference
Slide 20: Focus for 2022
Focus for 2022 • Handle health and safety of our employees • Manage volatility in demand • Manage the current challenges in global supply chains and raw material prices • Continue to execute our updated strategy including: • Active M&A • Run our business model efficiently • Further development of ou
Slide 21: Q&A
Q&A @ HEXPOL A Material Difference
Slide 22: www.HEXPOL.com
www.HEXPOL.com 22 A Material Difference