Slide 1: Q2 2022 Presentation
Georg Brunstam CEO Peter Rosén CFO July 15, 2022 1 A Material Difference
Slide 2: Q2 2022 Presentation
Q2 2022 Presentation Presented by Agenda • Business Performance • Theme – Strong execution of our business model Georg Brunstam • Financial Overview CEO • Focus for 2022 • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Record Sales and Record Result – M&A Continues
Record Sales and Record Result – M&A Continues • Record sales and record quarterly result • Strong sales in all regions and product segments, especially so in the Americas • Continued execution of our strong business model where price increases on raw material are passed on • Record EBIT at 836 MSEK
Slide 5: Record Sales and Record Result – M&A Continues
Record Sales and Record Result – M&A Continues • HEXPOL Compounding • Strong sales in all regions and product areas, especially strong in the Americas • Strong sales in most customer segments • Automotive negatively affected by disturbances from component shortages • Strong EBIT, especially consider
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: Q2 Sales Development
Q2 Sales Development Strong sales growth Regional Development Sales development MSEK EUROPE +41% 41% 516 5 654 54% +41% ASIA +10% 5 138 +44% 5% +18% +22% 4 002 AMERICAS Organic Sales Q2'22 @ 2021 FX Q2'22 Q2'21 Acquisitions FX Effects Share of HEXPOL sales Sales development vs same period LY 8 A Mat
Slide 9: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 10: Q2 Financial Overview
Q2 Financial Overview Record high result despite significant challenges Key figures YTD YTD Highlights MSEK Q2'22 Q2'21 Q2'22 Q2'21 Sales 5 654 4 002 10 827 7 812 • High sales of 5 654 MSEK, an increase of 41% Adjusted EBITA 859 745 1 656 1 466 Adjusted EBITA Margin, % 15,2 18,6 15,3 18,8 • Operatin
Slide 11: Q2 Financial Highlights
Q2 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % +41% +15% -19% 5 654 836 18,2% 728 4 002 14,8% Q2'21 Q2'22 Q2'21 Q2'22 Q2'21 Q2'22 11 A Material Difference
Slide 12: Q2 Operating Profit
Q2 Operating Profit Higher sales partly offset by lower margin of acquisitions and raw material challenges Operating Profit Highlights MSEK • Strong sales • As previously communicated, negative +15% impact on gross margin from acquisitions • Further negative impact on gross margin 377 from continuou
Slide 13: Q2 HEXPOL Compounding
Q2 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Strong sales increase vs LY primarily driven by +42% +12% -12% organic growth of 18% and acquisitions 11% but also positive FX effects • The higher sales were driven by improvements 5 291 in most customer segments
Slide 14: Q2 HEXPOL Engineered Products
Q2 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales well above last year +30% +57% +20% • Overall strong performance but especially HEXPOL Wheels performed very well 363 • Sri Lankan economy under severe pressure 77 but our export oriented operations
Slide 15: Q2 Working Capital
Q2 Working Capital MSEK 2 500 14,0% Highlights • Increased working capital mainly driven 12,0% by decision to increase inventory level in 2 000 the face of global raw material shortages 10,0% • In addition, the acquisition of almaak adds 1 500 8,0% some 200 MSEK in working capital 6,0% 1 000 4,0% 50
Slide 16: Q2 Cash Flow
Q2 Cash Flow Cash Flow MSEK Highlights • Solid cash flow in the quarter, negatively impacted by higher inventory levels and temporarily higher investment level • The higher investment level is to a large 123 extent driven by the acquisition of almaak 836 where previously leased assets were - 135 acq
Slide 17: Q2 Net Debt
Q2 Net Debt Strong financial position 30-juni 31-dec Highlights MSEK 2022 2021 • Strong cash position Cash at hand 1 553 1 320 • Net Debt/EBITDA ratio temporarily higher affected by Used credit facilities -4 844 -2 219 dividend pay out (including extra dividend) and the acquisition of almaak Net deb
Slide 18: Record Sales and Record Result – M&A Continues
Record Sales and Record Result – M&A Continues • Record sales and record quarterly result • Strong sales in all regions and product segments, especially so in the Americas • Continued execution of our strong business model where price increases on raw material are passed on • Record EBIT at 836 MSEK
Slide 19: Focus for 2022
Focus for 2022 @ HEXPOL A Material Difference
Slide 20: Focus for 2022
Focus for 2022 • 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 development o
Slide 21: Q&A
Q&A @ HEXPOL A Material Difference
Slide 22: www.HEXPOL.com
www.HEXPOL.com 22 A Material Difference