Slide 1: Georg Brunstam CEO, Peter Rosén CFO
Georg Brunstam CEO Peter Rosén CFO July 19, 2023 1 A Material Difference
Slide 2: Q2 2023 Presentation
Q2 2023 Presentation Presented by Agenda • Business Performance • Financial Overview Georg Brunstam • Summary CEO • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Improved Margins – Our Best Second Quarter To Date
Improved Margins – Our Best Second Quarter To Date • Strong quarter with improved margins as expected • Strong EBIT at 945 MSEK (836) in line with record Q1’2023 • Strong margin development at 16,5% with both sequential margin improvement from Q1’2023 15,8% and from Q2’2022 14,8% • Continued executi
Slide 5: Improved Margins – Our Best Second Quarter To Date
Improved Margins – Our Best Second 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 • Improv
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: Q2 Sales Development
Q2 Sales Development Regional Development Sales development MSEK EUROPE +1% 39% 56% -6% ASIA +5% 5% -8% 383 5 727 5 654 +2% +17% 5 344 AMERICAS Organic Sales Q2'23 @ 2022… Q2'23 Q2'22 Acquisitions FX Effects Share of HEXPOL sales Sales development vs same period LY 8 A Material Difference
Slide 9: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 10: Q2 Financial Overview
Q2 Financial Overview Strong quarterly result with increased margins Key figures Highlights MSEK Q2'23 Q2'22 YTD Q2'23 YTD Q2'22 Sales 5 727 5 654 11 717 10 827 • Sales of 5 727 MSEK EBITA 976 859 1 951 1 656 EBITA Margin, % 17,0 15,2 16,7 15,3 • Operating Profit of 945 MSEK, an increase of 13% Oper
Slide 11: Q2 Financial Highlights
Q2 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % +1% +13% +11% 5 654 5 727 945 836 16,5% 14,8% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 11 A Material Difference
Slide 12: Q2 Operating Profit
Q2 Operating Profit Stronger gross margin drives higher operating profit Operating Profit Highlights MSEK • Stronger gross margin drives higher operating profit +13% • Stronger gross margin due to better product and price mix • OPEX increases driven by acquisition, inflation 130 945 and FX effects 8
Slide 13: Q2 HEXPOL Compounding
Q2 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales in line with LY +1% +16% +15% • Sales to automotive segment increase. This is partly offset by lower demand from the building 5 291 5 354 and construction segment as well as from 883 customers with consumer
Slide 14: Q2 HEXPOL Engineered Products
Q2 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales above last year, not least driven by +3% -19% -22% positive development in Asia • Overall strong performance in all product areas 363 373 • Operating Profit below LY driven by 77 negative FX effects
Slide 15: Q2 Working Capital
Q2 Working Capital MSEK Highlights 3 000 14,0% • Compared to last year, the acquisition of 12,0% McCann added some 80 MSEK in working 2 500 capital 10,0% 2 000 • Working capital in relation to sales 8,0% decreases following on general 1 500 improvement 6,0% 1 000 4,0% 500 2,0% 0 0,0% Q2´22 Q3´22 Q4´
Slide 16: Q2 Cash Flow
Q2 Cash Flow Cash Flow MSEK Highlights • Strong cash flow in the quarter driven by strong EBIT and improvement in working capital 133 130 1 048 945 - 160 EBIT Depreciation Working capital Investments Cash Flow 16 A Material Difference
Slide 17: Q2 Net Debt
Q2 Net Debt Strong financial position 30-juni 31-dec Highlights MSEK 2023 2022 • Strong financial position Cash at hand 1 274 1 541 Used credit facilities -4 128 -4 386 Net debt -2 854 -2 845 Net debt/EBITDA* 0,70 0,75 * EBITDA is R12 months 17 A Material Difference
Slide 18: Improved Margins – Our Best Second Quarter To Date
Improved Margins – Our Best Second Quarter To Date • Strong quarter with improved margins as expected • Strong EBIT at 945 MSEK (836) in line with record Q1’2023 • Strong margin development at 16,5% with both sequential margin improvement from Q1’2023 15,8% and from Q2’2022 14,8% • Continued executi
Slide 19: Q&A
Q&A @ HEXPOL A Material Difference
Slide 20: www.HEXPOL.com
www.HEXPOL.com 20 A Material Difference