Slide 1: HEXPOL Q1 2025 Presentation
HEXPOL Q1 2025 Presentation April 25, 2025 1 A Material Difference
Slide 2: Q1 2025 Presentation
Q1 2025 Presentation Presented by Agenda • Business Performance Klas Dahlberg • Financial Overview CEO • Summary • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance 3 A Material Difference
Slide 4: A Good Start To 2025 Despite An Uncertain World
A Good Start To 2025 Despite An Uncertain World • Q1 performance • Q1 sales 5 381 MSEK (5 312) with overall stable sales in the US and Europe, improvement in Asia • EBIT 839 MSEK (905) and EBIT margin at 15,6% (17,0%) • As always in first quarter, soft cash flow but better than last year 188 MSEK (1
Slide 5: A Good Start To 2025 Despite An Uncertain World
A Good Start To 2025 Despite An Uncertain World • HEXPOL Compounding • Sales in line with Q1’24, including acquired Piedmont • Organic demand down some vs Q1’24 affected by lower demand from automotive but largely offset by growth in other areas • Building and Construction, General Industry and Wire
Slide 6: Kabkom Turkey - Geographical Footprint & Offering
Kabkom Turkey - Geographical Footprint & Offering • Kabkom is the market leader in HFFR compounds for the cable industry in Turkey. An opportunity to offer a complete portfolio of cable materials in Turkey. • The Wire & Cable market is forecasted to grow above 6% CAGR for the coming 5-year period. H
Slide 7: Organization To Drive Profitable Growth
Organization To Drive Profitable Growth • HEXPOL Compounding - new structure • Build a significant, growing and profitable TP and TPE business positioned towards high performance and sustainable products. • Leverage existing capabilities in HEXPOL such as customer relations, application knowledge an
Slide 8: Organization To Drive Profitable Growth
Organization To Drive Profitable Growth HEXPOL AB HEXPOL ENGINEERED HEXPOL COMPOUNDING PRODUCTS HEXPOL HEXPOL HEXPOL HEXPOL HEXPOL HEXPOL HEXPOL RUBBER RUBBER RUBBER HIGH HEXPOL TPE THERMOPLASTIC GASKETS AND COMPOUNDING COMPOUNDING COMPOUNDING PERFORMANCE WHEELS COMPOUNDING COMPOUNDING SEALS AMERICA
Slide 9: US Trade Policy And Impact On HEXPOL
US Trade Policy And Impact On HEXPOL • Q1 2025 • We did not see any direct impact on HEXPOL in the quarter • We did not see any material indirect impact in the quarter • Going forward • We expect to see minimal direct impact in Europe • We furthermore expect minimal indirect impact in Europe • We do
Slide 10: Strong Execution Of Our Business Model
Strong Execution Of Our Business Model Well-positioned with demanding customers in growth markets STRONG BUSINESS MODEL t Sh Developing uc o od De rt S ”Glocal” Presence / Customer Pr nt ce u us me Co nt Global Footprint Solutions or pp liz ted p ve o ra ina ly ed De inu lo d Ch And nt ain Co s Sust
Slide 11: Financial Overview
Financial Overview 11 A Material Difference
Slide 12: Q1 Sales Development
Q1 Sales Development Regional Development Sales development MSEK EUROPE +1% 40% 54% 0% ASIA +1% 6% -3% +3% 5 312 5 317 64 5 381 +15% AMERICAS Q1'24 Organic Sales Acquisitions Q1'25 @ 2024FX FX Effects Q1'25 Share of HEXPOL sales Sales development vs same period LY 12 A Material Difference
Slide 13: Q1 Financial Overview
Q1 Financial Overview A good start to 2025 despite an uncertain world Group Summary Key figures MSEK Q1'25 Q1'24 Highlights Sales 5 381 5 312 • Sales of 5 381 MSEK EBITA 873 939 • Operating Profit of 839 MSEK EBITA-Margin, % 16,2 17,7 Operating Profit 839 905 • Operating Margin of 15,6% Operating Ma
Slide 14: Q1 Financial Highlights
Q1 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % +1% -7% -8% 5 312 5 381 905 839 17,0% 15,6% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 14 A Material Difference
Slide 15: Q1 Operating Profit
Q1 Operating Profit Operating Profit Highlights MSEK • The lower Operating Profit is negatively affected by somewhat lower gross margin and OPEX -7% increase • The lower gross margin is mainly driven by the product mix 905 15 839 - 39 - 42 Q1'24 Sales Gross Margin OPEX Q1'25 15 A Material Difference
Slide 16: Q1 HEXPOL Compounding
Q1 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales in line with LY, positive impact from 0% -9% -9% acquired Piedmont • Somewhat lower demand compared to Q1’24. Lower demand seen with the automotive end 4 939 4 952 customers but largely offset with growth in
Slide 17: Q1 HEXPOL Engineered Products
Q1 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Improvement in sales with strong +15% +15% 0% development in all product areas • Operating Profit shows strong improvement compared to last year 429 373 78 68 18,2% 18,2% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'2
Slide 18: Q1 Working Capital
Q1 Working Capital MSEK Highlights 2 500 12,00% • Compared to last year, the acquisition of 10,00% Piedmont added some 93 MSEK in 2 000 working capital 8,00% 1 500 • Working capital improved compared to Q1 6,00% last year, both in absolute terms and in relation to sales 1 000 4,00% 500 2,00% 0 0,00%
Slide 19: Q1 Cash Flow
Q1 Cash Flow Cash Flow MSEK Highlights • As is normal in first quarter, low cash flow where EBIT was offset by growth in accounts receivables • The growth in accounts receivables is 144 driven by low level at start of the year 839 • No change in underlying terms and conditions - 608 188 - 187 EBIT D
Slide 20: Q1 Net Debt
Q1 Net Debt Strong financial position 31-mar 31-mar MSEK 2025 2024 Highlights Cash at hand 1 410 1 462 • Strong financial position Used credit facilities -3 756 -2 923 • Recently acquired Piedmont affects net debt Net debt -2 346 -1 461 Net debt/EBITDA* 0,63 0,36 * EBITDA is R12 months 20 A Material
Slide 21: Summarizing Q1
Summarizing Q1 • A good start to 2025 despite uncertain world • No impact from tariffs in Q1, we are geared to handle the direct impact of imported raw materials to the US • Change in organization to drive profitable growth • Acquisitions continue - Kabkom in Turkey is the latest member of the HEXPO
Slide 22: Q&A
Q&A @HEXPOL A Material Difference
Slide 23: Thank You
Thank You www.HEXPOL.com 23 A Material Difference