Slide 1: Q3 2022 Presentation
Georg Brunstam CEO Peter Rosén CFO October 21, 2022 1 A Material Difference
Slide 2: Q3 2022 Presentation Agenda
Q3 2022 Presentation Presented by Agenda • Business Performance • Theme – Strong execution of our business model including Georg Brunstam Sustainability CEO • Financial Overview • Focus going forward • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Continued Sales Growth and Further Strengthened Result
Continued Sales Growth and Further Strengthened Result • Record Sales and Result • Strong sales in all regions and product segments, especially so in the Americas • Continued execution of our strong business model where price increases on raw material are passed on • Record EBIT at 838 MSEK (677) –
Slide 5: Continued Sales Growth and Further Strengthened Result
Continued Sales Growth and Further Strengthened Result • HEXPOL Compounding • Strong sales in all regions and product areas, especially strong in the Americas • Automotive shows varied development but some improvement towards end of the quarter • High uncertainty seen end of quarter in Europe, prima
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 Developing ”Glocal” Presence Customer / Global Footprint Solutions Sustainability HEXPOL Fragmented Market Green Products, Safety & CORE M&A Opportunities Resource Optimization VALUES With Synergies Strong And Flexible And Long Customer Ef
Slide 8: HEXPOL High-Level Objectives
A Material Difference HEXPOL High-Level Objectives Further reduce Further the carbon develop our footprint of our portfolio of energy use ”green products” 75% reduction of CO2 Increase the use of bio- emissions by 2025 based and recycled raw materials
Slide 9: Further Development of Our Green Portfolio
Further Development of Our Green Portfolio Polestar Zero Project almaak international GmbH “The Polestar 0 project is Polestar’s moon-shot goal of - Specialist in advanced recycled engineered compounds creating the first truly climate-neutral car by 2030 without - Inhouse recycling capacity offsetti
Slide 10: Q3 Sales Development
Q3 Sales Development Strong sales growth Regional Development Sales development MSEK EUROPE +44% 38% 709 5 921 57% +41% ASIA +6% +48% 5 212 5% +21% +28% AMERICAS 4 108 Organic Sales Q3'22 @ 2021 FX Q3'22 Q3'21 Acquisitions FX Effects Share of HEXPOL sales Sales development vs same period LY 10 A Mat
Slide 11: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 12: Q3 Financial Overview
Q3 Financial Overview Record high result despite significant challenges Key figures YTD YTD Highlights MSEK Q3'22 Q3'21 Q3'22 Q3'21 Sales 5 921 4 108 16 748 11 920 • High sales of 5 921 MSEK, an increase of 44% compared to Adjusted EBITA 865 695 2 521 2 161 Q3’21 Adjusted EBITA Margin, % 14,6 16,9 1
Slide 13: Q3 Financial Highlights
Q3 Financial Highlights Sales Operating Profit* Operating Margin* MSEK MSEK % +44% +24% -14% 5 921 838 16,5% 677 4 108 14,2% Q3'21 Q3'22 Q3'21 Q3'22 Q3'21 Q3'22 * Excluding one time items in Q3’21 13 A Material Difference
Slide 14: Q3 Operating Profit
Q3 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 +24% impact on gross margin from acquisitions • Further negative impact on gross margin from continuously
Slide 15: Q3 HEXPOL Compounding
Q3 HEXPOL Compounding Sales Operating Profit* Operating Margin* Highlights MSEK MSEK % • Strong sales increase vs LY primarily driven by +45% +24% -15% organic growth of 21% and acquisitions 7% but also positive FX effects • The higher sales were driven by improvements 5 554 in most customer segment
Slide 16: Q3 HEXPOL Engineered Products
Q3 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales well above last year +30% +24% -5% • Overall strong performance but especially HEXPOL Wheels performed very well • Sri Lankan economy under severe pressure 367 73 but our export oriented operations 2
Slide 17: Q3 Working Capital
Q3 Working Capital MSEK Highlights 3 000 14,0% • Increased working capital mainly driven 2 500 12,0% by decision to increase inventory level in the face of global raw material shortages 10,0% 2 000 • In addition, the acquisition of almaak adds 8,0% some 250 MSEK in working capital 1 500 6,0% 1 000 4
Slide 18: Q3 Cash Flow
Q3 Cash Flow Cash Flow MSEK Highlights • Solid cash flow in the quarter, negatively impacted by higher working capital levels and temporarily higher investment level • The higher investment level is mainly 123 driven by investments related to newly 838 - 117 aquired almaak and the acquisition of a 7
Slide 19: Q3 Net Debt
Q3 Net Debt Strong financial position 30-sep 31-dec Highlights MSEK 2022 2021 • Strong cash position Cash at hand 1 677 1 320 • Net Debt/EBITDA ratio temporarily higher affected by Used credit facilities -4 447 -2 219 dividend pay out (including extra dividend) and the acquisition of almaak Net debt
Slide 20: Continued Sales Growth and Further Strengthened Result
Continued Sales Growth and Further Strengthened Result • Record Sales and Result • Strong sales in all regions and product segments, especially so in the Americas • Continued execution of our strong business model where price increases on raw material are passed on • Record EBIT at 838 MSEK (677) –
Slide 21: Focus Going Forward
Focus Going Forward @ HEXPOL A Material Difference
Slide 22: Focus Going Forward
Focus Going Forward • Handle health and safety of our employees • Manage volatility in demand • Manage the current challenges in global supply chains and raw material prices • Strong execution of our business model • Continue to execute our updated strategy including: • Active M&A • Further developm
Slide 23: Q&A
Q&A @ HEXPOL A Material Difference
Slide 24: www.HEXPOL.com
www.HEXPOL.com 24 A Material Difference