Slide 1: Georg Brunstam CEO, Peter Rosén CFO
Georg Brunstam CEO Peter Rosén CFO January 28, 2022 1 A Material Difference
Slide 2: Q4 2021 Presentation
Q4 2021 Presentation Presented by Agenda • Business Performance • Financial Overview Georg Brunstam • Focus for 2022 CEO • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Strong sales in a challenging environment
Strong sales in a challenging environment • 2021 – Record sales and record profit – best year ever – so far • Sales at 16 005 MSEK, up 19% vs 2020 • Adjusted Operating profit at 2 737 MSEK, up 36% vs 2020 • EPS at 6,85 SEK, up 67% vs 2020 • Good Q4 given the circumstances • Strong sales seen in all
Slide 5: Strong Execution on Updated Strategy and Increased Customer Focus
Strong Execution on Updated Strategy and Increased Customer Focus • HEXPOL Compounding • Strong sales in all regions and product areas • Strong sales in most customer segments • Automotive affected by disturbances from semi conductor shortages and closed production during the Christmas holidays • Go
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 2021 Sales Development
Q4 2021 Sales Development Strong sales growth despite market challenges Regional Development Sales development MSEK EUROPE +20% 38% 56% +27% ASIA +6% 4 027 58 4 085 +16% 6% +12% +13% 3 402 AMERICAS Organic Sales Q4'21 @ 2020 FX Q4'21 Q4'20 Acquisitions FX Effects Share of HEXPOL sales Sales developm
Slide 8: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 9: Q4 Financial Overview
Q4 Financial Overview Strong result despite significant challenges Key figures YTD YTD Highlights MSEK Q4'21 Q4'20 Q4'21 Q4'20 Sales 4 085 3 402 16 005 13 424 Q4 Adjusted EBITA 651 641 2 812 2 088 • Adjusted Operating Profit of 628 MSEK Adjusted EBITA Margin, % 15,9 18,8 17,6 15,6 Adjusted Operating
Slide 10: Q4 2021 Financial Highlights
Q4 2021 Financial Highlights Sales Adjusted Operating Adjusted Operating MSEK Profit* MSEK Margin* % +20% +1% -16% 4 085 622 628 3 402 18,3% 15,4% Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 * Excluding restructuring costs 10 A Material Difference
Slide 11: Q4 Adjusted Operating Profit
Q4 Adjusted Operating Profit Higher sales partly offset by lower margin of acquisitions and raw material challenges Adjusted Operating Highlights Profit* MSEK • Strong sales • As previously communicated, negative +1% impact on gross margin from acquisitions 165 • Further negative impact on gross mar
Slide 12: Q4 HEXPOL Compounding
Q4 HEXPOL Compounding Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Strong sales increase vs LY primarily driven by +20% +1% -16% organic growth of 11% and acquisitions 7%. • The higher sales were driven by improvements 3 791 in most customer segments and all p
Slide 13: Q4 HEXPOL Engineered Products
Q4 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales well above last year +21% 0% -17% • Overall strong performance HEXPOL Wheels • Operating Profit in line with LY 294 • Lower Operating Margin affected by 243 higher raw material costs 42 42 17,3% 14,3
Slide 14: Q4 Working Capital
Q4 Working Capital MSEK Highlights 1 600 10,0% • Improvement vs previous quarter 2022 1 400 9,0% primarily driven by lower AR 8,0% • Still, year over year increase primarily 1 200 7,0% driven by decision to increase inventory 1 000 level in the face of global raw material 6,0% shortages 800 5,0% 4,0
Slide 15: Q4 Cash Flow
Q4 Cash Flow Cash Flow MSEK 544 Highlights 1 296 - 114 • Very strong cash flow, positively impacted by lowered working capital and insurance payment 223 • Also strong cash flow if excluding the insurance payment 106 537 • Level of investments in line with depreciation Depreciation Insurance… Cash Fl
Slide 16: Q4 Net Debt
Q4 Net Debt Strong financial position 31-dec 31-dec Highlights MSEK 2021 2020 • Very strong cash position Cash at hand 1 320 1 200 • Strong and further improved Net Debt/EBITDA ratio Used credit facilities -2 219 -2 793 Net debt -899 -1 593 Net debt/EBITDA* 0,25 0,67 * EBITDA is R12 months 16 A Mate
Slide 17: Strong sales in a challenging environment
Strong sales in a challenging environment • 2021 – Record sales and record profit – best year ever – so far • Sales at 16 005 MSEK, up 19% vs 2020 • Adjusted Operating profit at 2 737 MSEK, up 36% vs 2020 • EPS at 6,85 SEK, up 67% vs 2020 • Good Q4 given the circumstances • Strong sales seen in all
Slide 18: Focus for 2022
Focus for 2022 @ HEXPOL A Material Difference
Slide 19: 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 20: Q&A
Q&A @ HEXPOL A Material Difference
Slide 21: www.HEXPOL.com
www.HEXPOL.com 21 A Material Difference