Slide 1: Q4 2022 Presentation
Georg Brunstam CEO Peter Rosén CFO January 27, 2023 1 A Material Difference
Slide 2: Q4 2022 Presentation Agenda
Q4 2022 Presentation Presented by Agenda • Business Performance • Financial Overview Georg Brunstam • Focus going forward CEO • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Record 4th Quarter and Sequential Margin Improvement
Record 4th Quarter and Sequential Margin Improvement • Best Q4 Ever – So Far • Good sales in all regions and product segments • End of December saw lower sales compared to beginning of quarter following on customer de-stocking and extreme weather in the US • Continued execution of our strong busines
Slide 5: Record 4th Quarter and Sequential Margin Improvement
Record 4th Quarter and Sequential Margin Improvement • HEXPOL Compounding • Good sales in all regions and product areas • End of December saw lower sales compared to beginning of quarter following on customer de- stocking and extreme weather in the US • Sales to automotive segments show slow improve
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: HEXPOL High-Level Objectives
A Material Difference HEXPOL High-Level Objectives Further reduce Further the carbon develop our footprint of our portfolio of energy use ”green products” 75% reduction of CO2 Increase the use of bio- emissions by 2025 based and recycled raw materials
Slide 9: Sustainability – Reduction of CO2 Emissions
Sustainability – Reduction of CO2 Emissions Sustainability actions drive towards fulfilment of target CO2 tons/sales Highlights 10 • CO2 emissions from energy consumption (tons/sales) are to decrease with 75% by 2025 9 compared to the average for 2018/2019 8 • Driven by the sustainability actions, t
Slide 10: Q4 Sales Development
Q4 Sales Development Strong sales growth Regional Development Sales development MSEK EUROPE +35% 38% 56% +34% 681 5 495 ASIA +8% +35% 4 814 6% +10% +36% 4 085 AMERICAS '21 s s X ts '22 Q4 al e tio n 1F ec Q4 S u is i 20 2 E ff n ic q FX ga Ac @ Or 2 Q 4'2 Share of HEXPOL sales Sales development vs s
Slide 11: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 12: Q4 Financial Overview
Q4 Financial Overview Record high Q4 result Key figures Highlights MSEK Q4'22 Q4'21 FY 2022 FY 2021 Sales 5 495 4 085 22 243 16 005 • High sales of 5 495 MSEK, an increase of 35% compared to Adjusted EBITA 837 651 3 358 2 812 Q4’21 Adjusted EBITA Margin, % 15,2 15,9 15,1 17,6 Adjusted Operating Prof
Slide 13: Q4 Financial Highlights
Q4 Financial Highlights Sales Adjusted Operating Profit* Adjusted Operating Margin* MSEK MSEK % +35% +29% -4% 5 495 811 15,4% 14,8% 4 085 628 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 * Excluding one off items 13 A Material Difference
Slide 14: Q4 Operating Profit
Q4 Operating Profit Higher sales drive higher operating profit Adjusted Operating Profit* Highlights MSEK • Strong sales drive higher operating profit • As previously communicated, negative +29% impact on gross margin from acquisitions • OPEX up primarily driven by acquisitions, 294 inflation and ne
Slide 15: Q4 HEXPOL Compounding
Q4 HEXPOL Compounding Sales Adjusted Operating Profit* Operating Margin* Highlights MSEK MSEK % • Strong sales increase vs LY primarily driven by +36% +26% -8% organic growth of 11% and acquisitions 8% but also positive FX effects 5 148 • The higher sales were driven by improvements 3 791 737 in mos
Slide 16: Q4 HEXPOL Engineered Products
Q4 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales well above last year +18% +76% +49% • Overall strong performance in all product areas • Sri Lankan economy under severe pressure 347 but our export oriented operations 294 74 continue to run 21,3% •
Slide 17: Q4 Working Capital
Q4 Working Capital MSEK Highlights 3 000 14,0% • Improved working capital to a large extent 2 500 12,0% driven by lower inventory levels following on more stable supply of raw materials 10,0% 2 000 • Compared to last year, the acquisitions of 8,0% almaak and McCann added some 350 1 500 MSEK in worki
Slide 18: Q4 Cash Flow
Q4 Cash Flow Record strong cash flow Cash Flow MSEK Highlights • Record strong cash flow in the quarter, positively impacted by lower working 628 capital levels 1 366 • The higher investment level is mainly - 243 driven by investments related to newly 140 aquired almaak and McCann 841 EBIT Depreciat
Slide 19: Q4 Net Debt
Q4 Net Debt Strong financial position 31-dec 31-dec Highlights MSEK 2022 2021 • Strong cash position Cash at hand 1 541 1 320 • Net Debt/EBITDA ratio temporarily higher affected by Used credit facilities -4 386 -2 219 dividend pay out (including extra dividend) and the Net debt -2 845 -899 acquisiti
Slide 20: Record 4th Quarter and Sequential Margin Improvement
Record 4th Quarter and Sequential Margin Improvement • Best Q4 Ever – So Far • Good sales in all regions and product segments • End of December saw lower sales compared to beginning of quarter following on customer de-stocking and extreme weather in the US • Continued execution of our strong busines
Slide 21: Focus Going Forward
Focus Going Forward @ HEXPOL A Material Difference
Slide 22: Focus Going Forward
Focus Going Forward • Handle health and safety of our employees • Manage volatility in demand • Manage the current challenges in global supply chains and raw material prices • Strong execution of our business model • Continue to execute our updated strategy including: • Active M&A • Further developm
Slide 23: Q&A
Q&A @ HEXPOL A Material Difference
Slide 24: www.HEXPOL.com
www.HEXPOL.com 24 A Material Difference