Slide 1: HEXPOL Q4 2024 Presentation
HEXPOL Q4 2024 Presentation January 28, 2025 1 A Material Difference
Slide 2: Q4 2024 Presentation Agenda
Q4 2024 Presentation Presented by Agenda • Business Performance Klas Dahlberg • Financial Overview CEO • Summary • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance 3 A Material Difference
Slide 4: Strong cash flow and continued focus on increased efficiency
Strong cash flow and continued focus on increased efficiency • Q4 performance • Q4 sales 4 694 MSEK (4 868) – improved sales in Europe offset by lower sales in North America • Adjusted EBIT 631 MSEK (838) and Adjusted EBIT margin at 13,4% (17,2%) • The lower EBIT and margin mainly driven by North Am
Slide 5: HEXPOL Rubber Compounding
HEXPOL Rubber Compounding United States Whitewater, WI Burton, OH Middlefield, OH Akron, OH Barberton, OH Statesville, NC Long Beach, CA Tallapoosa, GA Muscle Shoals, AL Huntingdon, TN Kennedale, TX Dyersburg, TN
Slide 6: Strong cash flow and continued focus on increased efficiency
Strong cash flow and continued focus on increased efficiency • HEXPOL Compounding • Lower sales in North America driven by extended holiday closures by customers • Demand down vs Q4’23 mainly affected by lower demand from automotive end customers • Increase seen in demand from Building and Construct
Slide 7: Piedmont Resin Supply LLC – Georgia, US
Piedmont Resin Supply LLC – Georgia, US Overview Strategic Fit: • Specializing in Nylon Compounds • Piedmont furthermore adds a portfolio of recycled materials (ca 60%) to HEXPOL. Markets: • Industrial, Automotive, Furniture, Filtration, Consumer, Electronics Other Information : • Turnover (2024): 6
Slide 8: 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 9: Financial Overview
Financial Overview 9 A Material Difference
Slide 10: Q4 Sales Development
Q4 Sales Development Regional Development Sales development MSEK EUROPE -4% 41% 53% +1% ASIA -7% 6% 4 868 -6% +2% 4 665 29 4 694 -2% AMERICAS Q4'23 Organic Sales Acquisitions Q4'24 @ 2023FX FX Effects Q4'24 Share of HEXPOL sales Sales development vs same period LY 10 A Material Difference
Slide 11: Q4 Financial Overview
Q4 Financial Overview Strong cash flow and continued focus on increased efficiency Group Summary Key figures jan-dec jan-dec MSEK Q4'24 Q4'23 2024 2023 Highlights Sales 4 694 4 868 20 437 22 046 EBITA, adjusted 667 872 3 384 3 787 • Sales of 4 694 MSEK EBITA-Margin, adjusted, % 14,2 17,9 16,6 17,2 O
Slide 12: Q4 Financial Highlights
Q4 Financial Highlights Sales Operating Profit, adjusted Operating Margin, adjusted MSEK MSEK % -4% -25% -22% 4 868 4 694 838 17,2% 631 13,4% Q4'23 Q4'24 Q4'23 Q4'24 Q4'23 Q4'24 12 A Material Difference
Slide 13: Q4 Operating Profit
Q4 Operating Profit Operating Profit, adjusted Highlights MSEK • The lower Operating Profit is negatively affected by somewhat lower sales and lower gross margin -25% • The lower gross margin is mainly driven by lower volume that cannot be offset by cost savings in the short run and negative mix • O
Slide 14: Q4 HEXPOL Compounding
Q4 HEXPOL Compounding Sales Operating Profit, adjusted Operating Margin, adjusted Highlights MSEK MSEK % • Lower sales in North America while Europe -5% -28% -25% somewhat above LY. Sales affected by extended holiday closures by customers and lower demand 4 511 4 308 • The lower demand is mainly see
Slide 15: Q4 HEXPOL Engineered Products
Q4 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Improvement in sales with strong +8% +18% +9% development in all product areas • Operating Profit and Operating Margin show strong improvement compared to 386 last year 357 65 55 15,4% 16,8% Q4'23 Q4'24 Q4
Slide 16: Q4 Working Capital
Q4 Working Capital MSEK Highlights 2 500 12,0% • Compared to last year, the acquisition of 10,0% Piedmont added some 97 MSEK in 2 000 working capital 8,0% 1 500 • Working capital in line with Q4 last year, 6,0% both in absolute terms and in relation to sales 1 000 4,0% 500 2,0% 0 0,0% Q4´23 Q1'24 Q2
Slide 17: Q4 Cash Flow
Q4 Cash Flow Cash Flow MSEK Highlights • Strong cash flow in the quarter driven by major improvement in working capital 648 1 171 - 183 150 556 EBIT Depreciation Working capital Investments Cash Flow 17 A Material Difference
Slide 18: Q4 Net Debt
Q4 Net Debt Strong financial position 31-dec 31-dec MSEK 2024 2023 Highlights Cash at hand 1 233 1 103 • Strong financial position Used credit facilities -3 468 -2 678 Net debt -2 235 -1 575 Net debt/EBITDA* 0,59 0,38 * EBITDA is R12 months 18 A Material Difference
Slide 19: Summarizing Q4
Summarizing Q4 • Improved sales in Europe offset by lower sales in North America. • Profitability was impacted by the lower December sales volumes in North America in combination with the sales mix. • Our cashflow is a proof of a solid business model. • We continuously work on efficiency. • Piedmont
Slide 20: Q&A
Q&A @HEXPOL A Material Difference
Slide 21: Thank You
Thank You www.HEXPOL.com 21 A Material Difference