Slide 1: Georg Brunstam CEO, Peter Rosén CFO
Georg Brunstam CEO Peter Rosén CFO July 16 2021 1 A Material Difference
Slide 2: Q2 2021 Presentation
Q2 2021 Presentation Presented by Agenda • Business Performance • Financial Overview Georg Brunstam • Focus for 2021 CEO • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Strong Organic Sales and Lowered Cost Base Gave Best Quarterly Result Ever
Strong Organic Sales and Lowered Cost Base Gave Best Quarterly Result Ever • Strong organic sales increase 70% - growth in all regions despite global supply chain disturbances • Sales and volume recovery seen with most customer segments • Supply chain issues and semi conductor shortages at OEMs affe
Slide 5: Strong Execution on Updated Strategy and Increased Customer Focus
Strong Execution on Updated Strategy and Increased Customer Focus • HEXPOL Compounding • Strong sales in all regions • Recovery in most industry segments • Automotive at good levels in all regions but disturbances from semi conductor shortages • Substantial EBIT improvement driven by good sales and
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: Q2 2021 Sales Development
Q2 2021 Sales Development Strong organic sales growth partly offset by negative FX effects (mainly USD) Regional Development Sales development MSEK EUROPE +58% 42% +70% +4% 4 407 53% +69% ASIA 4 002 +54% - 405 5% +29% AMERICAS 2 526 Organic Sales Q2'21 @ 2020 FX Q2'21 Q2'20 Acquisitions FX Effects S
Slide 8: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 9: Q2 Financial Overview
Q2 Financial Overview Very strong result and margin despite negative FX effects Key figures YTD YTD Highlights – Second Quarter MSEK Q2'21 Q2'20 Q2'21 Q2'20 Sales 4 002 2 526 7 812 6 694 • Negative FX effects of 405 MSEK on sales and 62 Adjusted EBITA 745 229 1 466 836 MSEK on Operating Profit compa
Slide 10: Q2 2021 Financial Highlights
Q2 2021 Financial Highlights Strong improvement of operating profit and margin Sales Adjusted Operating Adjusted Operating MSEK Profit* MSEK Margin* % +58% +248% +119% 4 002 728 18,2% 2 526 8,3% 209 Q2'20 Q2'21 Q2'20 Q2'21 Q2'20 Q2'21 * Excluding restructuring costs 10 A Material Difference
Slide 11: Q2 Adjusted Operating Profit
Q2 Adjusted Operating Profit Very strong result and margins despite negative FX effects Adjusted Operating Highlights Profit* MSEK • High organic volume and sales increase • Significant savings in both direct and +248% indirect costs compared to last year 41 728 • OPEX well below last year 223 • Neg
Slide 12: Adjusted Operating Profit and Margin
Adjusted Operating Profit and Margin Substantial profit and margin improvement MSEK Highlights 800 30,0% • Continuous sales improvement combined 700 -62% with lower cost base give high Operating 728 25,0% 704 Profit and Operating Margin 600 622 587 593 18,3% 18,5% 18,2% 20,0% • Majority of the cost
Slide 13: Q2 HEXPOL Compounding
Q2 HEXPOL Compounding Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Strong organic sales growth of 74% vs LY while +63% +281% +133% acquisitions add 5% sales. Sales were negatively affected vs LY by negative FX effects of 386 3 723 MSEK. 679 • The higher sales
Slide 14: Q2 HEXPOL Engineered Products
Q2 HEXPOL Engineered Products Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Sales were well above last year +18% +58% +34% • Overall strong performance HEXPOL Wheels • Substantial Operating Profit and 279 Operating Margin improvement following 236 good sales an
Slide 15: Q2 Working Capital
Q2 Working Capital MSEK Highlights 1 400 9,0% • Year over year increase in absolute terms 8,0% while on same level in relation to sales 1 200 7,0% • On same level as previous quarter affected 1 000 6,0% by temporarily higher accounts receivables and inventory 800 5,0% 600 4,0% 3,0% 400 2,0% 200 1,0%
Slide 16: Q2 Cash Flow
Q2 Cash Flow Cash Flow Highlights MSEK • Strong EBIT offset by temporarily higher working capital • Level of investments below depreciation 78 728 0 - 164 590 - 52 Depreciation Sale of fixed assets Cash Flow EBIT Working capital Investments 16 A Material Difference
Slide 17: Q2 Net Debt
Q2 Net Debt Strong financial position 30-juni 31-dec Highlights MSEK 2020 2020 • Strong cash position Cash at hand 886 1 200 • Strong and further improved Net Debt/EBITDA ratio Used credit facilities -2 833 -2 793 Net debt -1 947 -1 593 Net debt/EBITDA* 0,63 0,65 * Excluding restructuring costs 17 A
Slide 18: Strong Organic Sales and Lowered Cost Base Gave Best Quarterly Result Ever
Strong Organic Sales and Lowered Cost Base Gave Best Quarterly Result Ever • Strong organic sales increase 70% - growth in all regions despite global supply chain disturbances • Sales and volume recovery seen with most customer segments • Supply chain issues and semi conductor shortages at OEMs affe
Slide 19: Focus for 2021
Focus for 2021 @ HEXPOL A Material Difference
Slide 20: Focus for 2021
Focus for 2021 • Handle health and safety of our employees • Continued strong execution of forecasted increased LVP production • Manage volatility in demand • Manage the current challenges in global supply chains and raw material prices • Continue to evaluate our manufacturing footprint • Continue t
Slide 21: Q&A
Q&A @ HEXPOL A Material Difference
Slide 22: www.HEXPOL.com
www.HEXPOL.com 22 A Material Difference