Slide 1: HEXPOL Q3 2024 Presentation
HEXPOL Q3 2024 Presentation October 25, 2024 1 A Material Difference
Slide 2: Q3 2024 Presentation Agenda
Q3 2024 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: Solid Profits Despite Automotive Downturn
Solid Profits Despite Automotive Downturn • Q3 performance • Q3 sales 4 977 MSEK (5 461) impacted by somewhat lower demand, lower sales prices driven by lower prices on main raw materials and negative FX effects • Solid margin at 16,1% (17,0%) and EBIT 800 MSEK (930) • Solid cash flow of 803 MSEK (9
Slide 5: Recycling At almaak – Part Of Sustainability
Recycling At almaak – Part Of Sustainability • almaak in Germany, part of the HEXPOL Group since 2022 continues to develop its use of recycled raw materials • 90% of all end products contain recycled materials from post-industrial waste (PIR) • Mainly European sourced raw materials in various aggreg
Slide 6: Solid Profits Despite Automotive Downturn
Solid Profits Despite Automotive Downturn • M&A • High focus and strong financial position supports further acquisitions • HEXPOL Compounding • Demand slightly down vs Q3’23 mainly affected by lower demand from automotive end customers • Increase in demand from Building and Construction • Stable sup
Slide 7: 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 8: 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 9: Financial Overview
Financial Overview 9 A Material Difference
Slide 10: Q3 Sales Development
Q3 Sales Development Regional Development Sales development MSEK EUROPE -9% 39% 55% -2% ASIA -14% 6% -7% +1% +8% AMERICAS Share of HEXPOL sales Sales development vs same period LY 10 A Material Difference
Slide 11: Q3 Financial Overview
Q3 Financial Overview Solid Profits Despite Automotive Downturn Group Summary Key figures MSEK Q3'24 Q3'23 YTD Q3'24 YTD Q3'23 Highlights Sales 4 977 5 461 15 743 17 178 • Sales of 4 977 MSEK EBITA 834 964 2 717 2 915 EBITA-Margin, % 16,8 17,7 17,3 17,0 • Operating Profit of 800 MSEK Operating Profi
Slide 12: Q3 Financial Highlights
Q3 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % -9% -14% -5% 5 461 4 977 930 800 17,0% 16,1% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 12 A Material Difference
Slide 13: Q3 Operating Profit
Q3 Operating Profit Operating Profit Highlights MSEK • Decline in Operating Profit is mainly due to lower sales -14% • Negative FX effects of 23 MSEK • OPEX decrease driven by general cost control 13 A Material Difference
Slide 14: Q3 HEXPOL Compounding
Q3 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Lower sales driven by slightly lower demand, -10% -15% -6% negative FX effects and somewhat lower prices • The lower demand is mainly seen with the automotive end customers. Building and 5 099 construction saw an
Slide 15: Q3 HEXPOL Engineered Products
Q3 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales in line with LY, stable development +1% -4% -5% in all product areas • Operating Profit and Operating Margin show small movements vs LY 362 365 68 65 18,8% 17,8% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 1
Slide 16: Q3 Working Capital
Q3 Working Capital MSEK Highlights 2 500 12,0% • Compared to last year, the acquisition of 10,0% Star Thermoplastics added some 16 MSEK 2 000 in working capital 8,0% 1 500 • Working capital in line with Q3 last year, 6,0% both in absolute terms and in relation to sales 1 000 4,0% 500 2,0% 0 0,0% Q3´
Slide 17: Q3 Cash Flow
Q3 Cash Flow Cash Flow MSEK Highlights • Solid cash flow in the quarter 17 A Material Difference
Slide 18: Q3 Net Debt
Q3 Net Debt Strong financial position 30-sep 30-sep MSEK 2024 2023 Highlights Cash at hand 790 1 290 • Strong financial position Used credit facilities -3 247 -3 514 Net debt -2 457 -2 224 Net debt/EBITDA* 0,62 0,53 * EBITDA is R12 months 18 A Material Difference
Slide 19: Summary Q3 Performance
Summary Q3 Performance • Solid profits despite automotive downturn • Q3 sales 4 977 MSEK (5 461) • Margin at 16,1% (17,0%) and EBIT 800 MSEK (930) • Cash flow of 803 MSEK (963) • Demand down vs Q3’23 mainly affected by lower demand from automotive end customers • Sustainability focus • High interest
Slide 20: Q&A
Q&A @HEXPOL A Material Difference
Slide 21: Thank You
Thank You www.HEXPOL.com 21 A Material Difference