Slide 1: HEXPOL Q3 2023 Presentation
HEXPOL Q3 2023 Presentation October 27, 2023 1 A Material Difference
Slide 2: Q3 2023 Presentation Agenda
Q3 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 – Our Best Third Quarter To Date
Further Improved Margins – Our Best Third Quarter To Date • Strong quarter with further improved margins • Strong EBIT at 930 MSEK (838) • Strong margin at 17,0% with margin improvement vs both Q2’2023 16,5% and vs Q3’2022 14,2% • Continued execution of our business model where price management is c
Slide 5: Further Improved Margins – Our Best Third Quarter To Date
Further Improved Margins – Our Best Third Quarter To Date • HEXPOL Compounding • Sales to automotive segments show improvement but still varied development across markets • Substantially lower demand seen in most markets from building and construction as well as from producers of consumer products •
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: Q3 Sales Development
Q3 Sales Development Regional Development Sales development MSEK EUROPE -8% 36% 58% -14% ASIA -14% -5% 6% +2% +6% 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: Q3 Financial Overview
Q3 Financial Overview Strong quarterly result with increased margins Group Summary Highlights Key figures MSEK Q3'23 Q3'22 YTD Q3'23 YTD Q3'22 • Sales of 5 461 MSEK Sales 5 461 5 921 17 178 16 748 EBITA 964 865 2 915 2 521 • Operating Profit of 930 MSEK, an increase of 11% EBITA Margin, % 17,7 14,6
Slide 11: Q3 Financial Highlights
Q3 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % -8% +11% +20% 5 921 5 461 930 838 17,0% 14,2% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 11 A Material Difference
Slide 12: Q3 Operating Profit
Q3 Operating Profit Stronger gross margin drives higher operating profit Operating Profit Highlights MSEK • Stronger gross margin drives higher operating profit +11% • Stronger gross margin due to better product and price mix • OPEX increase driven by acquisition, inflation and FX effects 12 A Mater
Slide 13: Q3 HEXPOL Compounding
Q3 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Lower sales partly driven by lower prices on -8% +13% +22% main raw materials • Sales to automotive segment show improvement 5 554 but still varied development. Lower demand 5 099 from customers mainly within the
Slide 14: Q3 HEXPOL Engineered Products
Q3 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales in line with LY with good -1% -7% -6% development in Wheels • Operating Profit below LY driven by negative FX effects related to Sri Lankan currency 367 362 • Lower Operating Margin following on 73 6
Slide 15: Q3 Working Capital
Q3 Working Capital MSEK Highlights 3 000 14,0% • Compared to last year, the acquisition of 12,0% McCann added some 68 MSEK in working 2 500 capital 10,0% 2 000 • Working capital in relation to sales 8,0% continues to decrease following on general 1 500 improvements 6,0% 1 000 4,0% 500 2,0% 0 0,0% Q3
Slide 16: Q3 Cash Flow
Q3 Cash Flow Cash Flow MSEK Highlights • Strong cash flow in the quarter driven by strong EBIT and improvement in working capital 16 A Material Difference
Slide 17: Q3 Net Debt
Q3 Net Debt Strong financial position 30-sep 31-dec Highlights MSEK 2023 2022 • Strong financial position Cash at hand 1 290 1 541 Used credit facilities -3 514 -4 386 Net debt -2 224 -2 845 Net debt/EBITDA* 0,53 0,75 * EBITDA is R12 months 17 A Material Difference
Slide 18: Further Improved Margins – Our Best Third Quarter To Date
Further Improved Margins – Our Best Third Quarter To Date • Strong quarter with further improved margins • Strong EBIT at 930 MSEK (838) • Strong margin at 17,0% with margin improvement vs both Q2’2023 16,5% and vs Q3’2022 14,2% • Continued execution of our business model where price management is c
Slide 19: Q&A
Q&A @HEXPOL A Material Difference
Slide 20: Thank You
Thank You www.HEXPOL.com 20 A Material Difference