Slide 1: HEXPOL Q4 2023 Presentation
HEXPOL Q4 2023 Presentation January 26, 2024 1 A Material Difference
Slide 2: Q4 2023 Presentation
Q4 2023 Presentation Presented by Agenda • Business Performance • Financial Overview • Summary Peter Rosén • Q&A Acting CEO and CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance 3 A Material Difference
Slide 4: Further Improved Margins And Record Strong Cash Flow
Further Improved Margins And Record Strong Cash Flow • Strong performance • Adjusted EBIT came in at 838 MSEK (811) • Strong Adjusted EBIT margin at 17,2% (14,8%) • Strong cash flow at 1 390 MSEK (1 366) • Continued execution of our business model where price management is crucial • Good product and
Slide 5: Further Improved Margins And Record Strong Cash Flow
Further Improved Margins And Record Strong Cash Flow • M&A • High focus and strong financial position support further acquisitions • Star Thermoplastics consolidated from 1 November 2023 • HEXPOL Compounding • Sales to automotive segments show improvement but still varied development across markets
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: Strong Execution of Our Business Model
Strong Execution of Our Business Model STRONG BUSINESS MODEL t Sh Developing oduc o Pr nt De rt ”Glocal” Presence s ce S Customer u me Co n / Global Footprint op up ali ate ve o Solutions o De inu tr din pl zed d l y C An r nt Co ha ins HEXPOL d Sustainability Fragmented Market Green Products, Safet
Slide 8: Q4 Sales Development
Q4 Sales Development Regional Development Sales development MSEK EUROPE -11% 39% 55% -10% ASIA -14% -13% 6% +2% -7% AMERICAS Share of HEXPOL sales Sales development vs same period LY 8 A Material Difference
Slide 9: Financial Overview
Financial Overview 9 A Material Difference
Slide 10: Q4 Financial Overview
Q4 Financial Overview Strong cash flow and increased margins Group Summary Highlights Key figures jan-dec jan-dec MSEK Q4'23 Q4'22 2023 2022 • Sales of 4 868 MSEK Sales 4 868 5 495 22 046 22 243 EBITA, adjusted 872 837 3 787 3 358 • Adjusted Operating Profit of 838 MSEK, an EBITA-Margin, adjusted, %
Slide 11: Q4 Financial Highlights
Q4 Financial Highlights Sales Operating Profit, adjusted Operating Margin, adjusted MSEK MSEK % -11% +3% +16% 5 495 4 868 811 838 17,2% 14,8% Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 11 A Material Difference
Slide 12: Q4 Operating Profit
Q4 Operating Profit Stronger gross margin and lower OPEX drives higher operating profit Operating Profit, adjusted Highlights MSEK • Stronger gross margin combined with lower OPEX drives higher operating profit +3% • Stronger gross margin due to better product and price mix • OPEX decrease driven by
Slide 13: Q4 HEXPOL Compounding
Q4 HEXPOL Compounding Sales Operating Profit, adjusted Operating Margin, adjusted Highlights MSEK MSEK % • Lower sales partly driven by lower prices on -12% +6% +22% main raw materials • Sales to automotive segment show improvement but still varied development across markets. 5 148 4 511 Lower deman
Slide 14: Q4 HEXPOL Engineered Products
Q4 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Improvement in sales with good +3% -26% -28% development in Wheels • Operating Profit below LY driven by negative FX effects related to Sri Lankan currency 347 357 • Lower Operating Margin following on 74
Slide 15: Q4 Working Capital
Q4 Working Capital MSEK Highlights 2 500 10,0% • Compared to last year, the acquisitions of 9,0% McCann and Star Thermoplastics added 2 000 8,0% some 77 MSEK in working capital 7,0% • Working capital improves both in absolute 1 500 6,0% terms and in relation to sales following on 5,0% lower inventor
Slide 16: Q4 Cash Flow
Q4 Cash Flow Cash Flow MSEK Highlights • Strong cash flow in the quarter driven by major improvement in working capital 16 A Material Difference
Slide 17: Q4 Net Debt
Q4 Net Debt Strong financial position 31-dec 31-dec MSEK 2023 2022 Highlights Cash at hand 1 103 1 541 • Strong financial position Used credit facilities -2 678 -4 386 Net debt -1 575 -2 845 Net debt/EBITDA* 0,38 0,75 * EBITDA is R12 months 17 A Material Difference
Slide 18: Further Improved Margins And Record Strong Cash Flow
Further Improved Margins And Record Strong Cash Flow • Strong performance • Adjusted EBIT came in at 838 MSEK (811) • Strong Adjusted EBIT margin at 17,2% (14,8%) • Strong cash flow at 1 390 MSEK (1 366) • Continued execution of our business model where price management is crucial • Good product and
Slide 19: Q&A
Q&A @HEXPOL A Material Difference
Slide 20: Thank You
Thank You www.HEXPOL.com 20 A Material Difference