Slide 1: HEXPOL Q2 2024 Presentation
HEXPOL Q2 2024 Presentation July 17, 2024 1 A Material Difference
Slide 2: Q2 2024 Presentation Agenda
Q2 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: Stable Quarter With Strong Margins
Stable Quarter With Strong Margins • Second quarter performance • Sales of 5 454 MSEK (5 727) – affected by somewhat lower demand and lower sales prices driven by lower raw material prices • EBIT came in at 911 MSEK (945) • Strong EBIT margin at 16,7% (16,5%) • Strong cash flow of 926 MSEK and good
Slide 5: Stable Quarter With Strong Margins
Stable Quarter With Strong Margins • M&A • High focus and strong financial position support further acquisitions • HEXPOL Compounding • Demand and pricing in line with second half of ‘23 and Q1’24 • Slightly lower demand across the end customer segments vs. Q2 2023 • Stable supply chain • Most raw m
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 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 8: Q2 Sales Development
Q2 Sales Development Regional Development Sales development MSEK EUROPE -5% 39% 55% -4% ASIA -7% 6% -7% +1% +10% AMERICAS Share of HEXPOL sales Sales development vs same period LY 8 A Material Difference
Slide 9: Financial Overview
Financial Overview 9 A Material Difference
Slide 10: Q2 Financial Overview
Q2 Financial Overview Stable quarter with strong margins Group Summary Key figures MSEK Q2'24 Q2'23 YTD Q2'24 YTD Q2'23 Highlights Sales 5 454 5 727 10 766 11 717 EBITA 944 976 1 883 1 951 • Sales of 5 454 MSEK EBITA-Margin, % 17,3 17,0 17,5 16,7 • Operating Profit of 911 MSEK Operating Profit 911 9
Slide 11: Q2 Financial Highlights
Q2 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % -5% -4% +1% 5 727 5 454 945 911 16,5% 16,7% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 11 A Material Difference
Slide 12: Q2 Operating Profit
Q2 Operating Profit Operating Profit Highlights MSEK • Lower sales are mainly offset by stronger gross margin and lower OPEX -4% • Strong gross margin due to good product and price mix • OPEX decrease driven by general cost control 12 A Material Difference
Slide 13: Q2 HEXPOL Compounding
Q2 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Slightly lower demand across the end customer -5% -4% +1% segments vs. Q2 2023 • Lower sales prices driven by lower prices on main raw materials 5 354 5 062 883 844 • Operating Profit decreased some compared to 16
Slide 14: Q2 HEXPOL Engineered Products
Q2 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales increased compared to LY, strong +5% +8% +3% development in wheels • Operating Profit above LY • Higher Operating Margin 392 373 67 62 16,6% 17,1% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 14 A Material Di
Slide 15: Q2 Working Capital
Q2 Working Capital MSEK Highlights 2 500 12,0% • Compared to last year, the acquisition of 10,0% Star Thermoplastics added some 18 MSEK 2 000 in working capital 8,0% 1 500 • Working capital in line with Q2 last year, 6,0% both in absolute terms and in relation to sales 1 000 4,0% 500 2,0% 0 0,0% Q2´
Slide 16: Q2 Cash Flow
Q2 Cash Flow Cash Flow MSEK Highlights • Strong cash flow in the quarter 16 A Material Difference
Slide 17: Q2 Net Debt
Q2 Net Debt Strong financial position 30-jun 30-jun MSEK 2024 2023 Cash at hand 997 1 274 Highlights Used credit facilities -3 915 -4 128 • Strong financial position Net debt -2 918 -2 854 Net debt/EBITDA* 0,72 0,70 * EBITDA is R12 months 17 A Material Difference
Slide 18: Stable Quarter With Strong Margins
Stable Quarter With Strong Margins • Second quarter performance • Sales of 5 454 MSEK (5 727) – affected by somewhat lower demand and lower sales prices driven by lower raw material prices • EBIT came in at 911 MSEK (945) • Strong EBIT margin at 16,7% (16,5%) • Strong cash flow of 926 MSEK and good
Slide 19: Q&A
Q&A @HEXPOL A Material Difference
Slide 20: Thank You
Thank You www.HEXPOL.com 20 A Material Difference