Hexpol Ab Class B · OMXSTO:HPOL_B
Hexpol Ab Class B — Investor Day (March 2021)
14 slides from Hexpol Ab Class B's investor day presentation, Mar 22, 2021
Slide 1: A Material Difference
A Material Difference Peter Rosén Dep CEO and CFO March 22, 2021
Slide 2: Fast Growing With Strong Margins
A Material Difference Fast Growing With Strong Margins STRONG SALES & EBIT MARGIN* MSEK 16,000 30% 14,000 25% Best Quarter Ever, 12,000 Q4 with 18.3% 20% 10,000 EBIT margin*. 15% The margin H2 8,000 was ~18%. 10% 6,000 4,000 5% 2,000 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 3: Financial Targets and Ambitions
A Material Difference Financial Targets and Ambitions Annual sales Operating Margin Dividend policy Equity Asset Ratio growth above 10% above 17% over 25-50% of Net above 30% over a cycle a cycle Income CAGR between 2010 Since the formulation The average Equity The average dividend and 2019 is +17%
Slide 4: Drivers of Long-Term Value For Shareholders
A Material Difference Drivers of Long-Term Value For Shareholders Strong Cash Strong Balance Continued Growth High Profitability Generation Sheet High customer focus Strong business model Very efficient working Equity/Asset ratio with continuous supporting robust and capital management ~ 60% (2020)
Slide 5: Continued Sales Growth
A Material Difference Continued Sales Growth Growth drivers will fuel continued growth CAGR 2010-2019 +17%, incl 2020 +13% Growth Drivers Target >10% Sales Growth • Structural market growth • Gain market share • Geographical growth • New applications • M&A 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 6: High Profitability
A Material Difference High Profitability Well executed business model drives profitability Business Model Current Operating Margin* ~18% 20.0% 18.0% Target 16.0% of 17% 14.0% 12.0% HEXPOL 10.0% CORE VALUES 8.0% 6.0% 4.0% 2.0% 0.0% Ave 2015-2019 2019 H1 2020 H2 2020 * Excluding restructuring costs Ma
Slide 7: Well Executed Business Model Drives Profitability
A Material Difference Well Executed Business Model Drives Profitability Business model supports strong margins Developing Customer Solutions • Advanced compounds supporting high customer requirements demand a premium • Strong teams with chemists driving HEXPOL CORE continuous product development VAL
Slide 8: Well Executed Business Model Drives Profitability
A Material Difference Well Executed Business Model Drives Profitability Global footprint but decentralized organization support strong margins ”Glocal” Presence • Global footprint combined with high volumes / Global Footprint have positive impact on purchasing • Decentralized organization with opera
Slide 9: Well Executed Business Model Drives Profitability
A Material Difference Well Executed Business Model Drives Profitability Flexible and efficient operations support strong cost management and give low working capital • Products are made to customer orders • Products generally have short shelf life • Large scale batch producer with lowest HEXPOL CORE
Slide 10: Well Executed Business Model Drives Profitability
A Material Difference Well Executed Business Model Drives Profitability Strong customer retention give robust financials • Products go through comprehensive testing and approval processes by the customers • We own most product recipes • Appreciated for superior quality & service HEXPOL CORE • Custom
Slide 11: Financial Resilience Through Business Set Up
A Material Difference Financial Resilience Through Business Set Up Robust – Flexible - Lean Business Model Resulting In Long Term Customer Global Footprint Efficient Working Capital Relationships and Low Risk Close to Our Customers Management Working Capital in Relation to Sales % 10% Acquisition of
Slide 12: Strong Operating Cash Generation
A Material Difference Strong Operating Cash Generation Efficient Management of Working Efficient Management Capital and Investments Drive of Working Capital CAPEX Below Depreciation Strong Operating Cash Flow Working Capital in Relation to Sales % MSEK MSEK 10% 500 3,000 128% 132% 140% Acquisition o
Slide 13: Strong Balance Sheet
A Material Difference Equity/Asset Ratio 90% 80% 70% Strong Balance Sheet 60% 50% Strong financial position supports 40% further profitable growth including 30% acquisitions 20% 10% 0% • Equity Asset Ratio well above target 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 of 30% • Low Net Debt
Slide 14: investors.HEXPOL.com
A Material Difference investors.HEXPOL.com March 23, 2021 14