Slide 1: Q4 2020 Presentation
Georg Brunstam CEO Peter Rosén CFO January 29 2021 A Material Difference
Slide 2: Q4 2020 Presentation
Q4 2020 Presentation Presented by Agenda • Business Performance • Theme: E-Mobility Georg Brunstam • Financial Overview CEO • Focus for 2021 • Q&A Peter Rosén CFO A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Best Quarterly Result Ever
Best Quarterly Result Ever • Covid -19 • All sites up and running, focus on maintaining health of employees • Strong customer focus with fast and stable deliveries noted and appreciated • Generally high Covid-19 uncertainty in US, UK, Sri Lanka and Mexico • Strong volume development in all regions •
Slide 5: Strong Execution on Updated Strategy and Increased Customer Focus
Strong Execution on Updated Strategy and Increased Customer Focus • HEXPOL Compounding • Strong volumes in all regions • Recovery stronger in China and Europe • Recovery in many industry segments but especially strong in automotive segment • Automotive strong in all regions but especially China • 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: Q4 2020 Sales Development
Q4 2020 Sales Development Sales decrease primarily driven by 7% negative FX effects (mainly USD) Regional Development Sales development MSEK EUROPE -10% 36% -3% 3 774 0% -7% 58% -5% ASIA 3 402 -15% 6% +17% AMERICAS Q4'19 Acquisitions Organic FX Q4'20 Share of HEXPOL sales Sales development vs same p
Slide 8: Theme: E-Mobility
Theme: E-Mobility @ HEXPOL A Material Difference
Slide 9: E-Mobility, Many Opportunities For HEXPOL
E-Mobility, Many Opportunities For HEXPOL HEXPOL’s Main Applications Benefitting From E -Mobility Mid-Term Trend Long-Term Trend (Hybrid & Fully Electric) • Sealing passenger cabin plus wind noise • Sealing passenger cabin unaffected reductions (no combustion noise) HEXPOL is well positioned Weather
Slide 10: Potential New Applications
Potential New Applications • Sealing for battery housing • Dampening mats for battery cells • Cooling systems for battery pack • Sealing for F-Cell housing • Layer sealing • Cable and connectors for supercharger • Infrastructure cabling for charging stations January 29, 2021 10 A Material Difference
Slide 11: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 12: Q4 Financial Overview
Q4 Financial Overview Very strong result and margin despite negative FX effects Key figures FY FY Highlights MSEK Q4'20 Q4'19 2020 2019 Sales 3 402 3 774 13 424 15 508 • Negative FX effects of 276 MSEK on sales EBITA, excl. non-recurring items 641 543 2 088 2 320 and 35 MSEK on Operating Profit EBIT
Slide 13: Sales Development During 2020
Sales Development During 2020 Strong recovery during Q4 Sales MSEK Highlights • After low second quarter we saw sales volumes improving sequentially 5 000 -39% • In Q4, sales volumes came in above 4 500 3 805 4 244 previous quarter and above same period 4 000 last year 3 774 3 685 3 500 202 276 • Th
Slide 14: Q4 2020 Financial Highlights
Q4 2020 Financial Highlights High Operating Profit and Operating Margin Sales Adjusted Operating Profit* Adjusted Operating Margin* MSEK MSEK % -10% +19% +33% 3 774 18,3% 3 402 622 522 13,8% Q4'19 Q4'20 Q4'19 Q4'20 Q4'19 Q4'20 * Excluding restructuring costs in Q4’19 – there are no restructuring cos
Slide 15: Q4 Adjusted Operating Profit
Q4 Adjusted Operating Profit Very strong result and margins despite negative FX effects Adjusted Operating Profit* Highlights MSEK • Negative FX effects of 276 MSEK on sales and 35 MSEK on Operating Profit +19% • Significant savings during the quarter in both direct and indirect costs 25 622 149 522
Slide 16: Adjusted Operating Profit and Margin
Adjusted Operating Profit and Margin Substantial margin improvement during the year MSEK Highlights 700 30,0% • Continuous volume improvement -62% combined with lower cost base give high 600 622 25,0% Operating Profit and Operating Margin 587 593 500 18,3% 20,0% • Significant savings during the quar
Slide 17: Q4 HEXPOL Compounding
Q4 HEXPOL Compounding Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Sales volumes increased both vs. previous quarter and vs. same period last year -10% +18% +31% • The higher sales volumes were primarily driven by higher demand from the automotive customers bu
Slide 18: Q4 HEXPOL Engineered Products
Q4 HEXPOL Engineered Products Sales Operating Profit MSEK Operating Margin % Highlights MSEK • Sales were in line with last year -3% +45% +49% • Substantial Operating Profit and Operating Margin improvement following good sales and cost reductions 250 243 42 17,3% 29 11,6% Q4'19 Q4'20 Q4'19 Q4'20 Q4
Slide 19: Q4 Working Capital
Q4 Working Capital Strong finish after continuous improvement MSEK Highlights 1 400 10,0% 9,0% • Substantial working capital improved in 1 200 absolute terms compared to same period 8,0% last year 1 000 7,0% • Working capital in relation to sales 800 6,0% improves after acquisitions with higher 5,0%
Slide 20: Q4 Cash Flow
Q4 Cash Flow Very strong cash generation Cash Flow Highlights MSEK • Working capital improved further during fourth quarter of 2020 369 0 • Level of investments below depreciation 1 023 -74 • Very strong cash generation during the quarter, up 40% compared to the same 106 period last year 622 Depreci
Slide 21: Q4 Net Debt
Q4 Net Debt Strong financial position 31-dec 31-dec Highlights MSEK 2020 2019 • Strong cash position Cash at hand 1 200 1 624 • Strong and further improved Net Debt/EBITDA ratio Used credit facilities -2 793 -4 000 Net debt -1 593 -2 376 Net debt/EBITDA* 0,67 0,95 * EBITDA is R12 months A Material D
Slide 22: Best Quarterly Result Ever
Best Quarterly Result Ever • Covid -19 • All sites up and running, focus on maintaining health of employees • Strong customer focus with fast and stable deliveries noted and appreciated • Generally high Covid-19 uncertainty in US, UK, Sri Lanka and Mexico • Strong volume development in all regions •
Slide 23: Focus for 2021
Focus for 2021 @ HEXPOL A Material Difference
Slide 24: Focus for 2021
Focus for 2021 • Handle health and safety of our employees • Continued strong execution of forecasted increased LVP production • Manage volatility in demand • Continue to evaluate our manufacturing footprint • Market share expansion • Strong M&A focus – more possibilities but also some challenges •
Slide 25: Q&A
Q&A @ HEXPOL A Material Difference
Slide 26: www.HEXPOL.com
www.HEXPOL.com A Material Difference