Slide 1: Georg Brunstam CEO, Peter Rosén CFO
Georg Brunstam CEO Peter Rosén CFO April 28 2021 1 A Material Difference
Slide 2: Q1 2021 Presentation Agenda
Q1 2021 Presentation Presented by Agenda • Business Performance • Themes: • M&A Georg Brunstam • Sustainability CEO • Financial Overview • Focus for 2021 • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Strong Sales and Lowered Cost Base Gave Best Quarterly Result Ever
Strong Sales and Lowered Cost Base Gave Best Quarterly Result Ever • Strong volume development in all regions despite global supply chain disturbances • Good sales volume development in Americas and Europe and especially China • Sales and volume recovery seen with most customer segments while especi
Slide 5: Strong Execution on Updated Strategy and Increased Customer Focus
Strong Execution on Updated Strategy and Increased Customer Focus • HEXPOL Compounding • Strong volumes in all regions • Recovery stronger in Europe and China • Recovery in many industry segments but especially strong in automotive segment • Automotive strong in all regions • Substantial EBIT improv
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: Q1 2021 Sales Development
Q1 2021 Sales Development Organic volume and sales growth offset by 11% negative FX effects (mainly USD) Regional Development Sales development MSEK EUROPE -9% 39% 1% 1% -11% 4 168 56% +1% ASIA 3 810 -16% 5% +21% AMERICAS Q1'20 Acquisitions Organic FX Q1'21 Share of HEXPOL sales Sales development vs
Slide 8: Theme: M&A
Theme: M&A @ HEXPOL A Material Difference
Slide 9: A Well-Positioned Company Creating Further Growth Opportunities Including M&A
A Well-Positioned Company Creating Further Growth Opportunities Including M&A Strong customer and customer development focus creates market share opportunities MARKET: HEXPOL POSITION: GROWTH OPPORTUNITIES: • Global market growth • Leading position in Europe and Americas • Market share, new and exis
Slide 10: HEXPOL Rubber Compounding
HEXPOL Rubber Compounding MARKET COUNTRIES WITH UNITS COMPETITIVE • Global market growth LANDSCAPE • Recovery in Automotive, Building & Fragmented market, few Construction and General Industry global competitors, many local players, many family and PE owned companies. HEXPOL POSITION COMPETITORS: •
Slide 11: Recent Acquisitions
Recent Acquisitions In line with strategy, two acquisitions in core business VICOM – 2 March 2021 Strong position in Southern Europe, in a segment favored by the global electrification trend. VICOM has high competence and capacity in Wire & Cable. • Turnover: 30 M EUR • Location: Vilafranca del Pene
Slide 12: Theme: Sustainability
Theme: Sustainability Continuous improvement based on long history @ HEXPOL A Material Difference
Slide 13: Looking Ahead
A Material Difference Looking Ahead We will further We will further reduce the develop our carbon footprint portfolio of of our energy use ”green products” • 75% reduction of CO2 emissions by 2025. • Increase the use of bio-based and recycled raw materials. • Increase the purchase of fossil-free ene
Slide 14: HEXPOL And The EU Taxonomy For Sustainable Activities
HEXPOL And The EU Taxonomy For Sustainable Activities • HEXPOL is a large (>500 employees) and listed company. The Taxonomy is therefore applicable to HEXPOL’s business. • Investors will assess HEXPOL according to the EU Taxonomy. Methods and guidelines are under development. • HEXPOL has to report
Slide 15: Our Approach To The EU Taxonomy
Our Approach To The EU Taxonomy • There are no specific Technical Criteria for polymer compounders and converters such as HEXPOL. • Based on the EU Technical Report, we have made a preliminary assessment of how much of HEXPOL’s activities (net sales) that may be included in the EU Taxonomy. • We use
Slide 16: Preliminary Results According To The EU Taxonomy
Preliminary Results According To The EU Taxonomy EU Taxonomy Sales / HEXPOL Net Sales (%) 20% 18,1% 18% 16% 14% Cleantech Applications 12% Carbon Footprint Reduction Climate Adaption 10% Circular Economy 8% Water Resource Management 6% Total 4% 2% 0% Internal estimates (31/12 2020) – based on curren
Slide 17: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 18: Q1 Financial Overview
Q1 Financial Overview Very strong result and margin despite negative FX effects Key figures Highlights MSEK Q1'21 Q1'20 Sales 3 810 4 168 • Negative FX effects of 412 MSEK on sales and 72 MSEK on Operating Profit Adjusted EBITA 721 607 Adjusted EBITA Margin, % 18,9 14,6 • Operating Profit of 704 MSE
Slide 19: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights Strong improvement of operating profit and margin Sales Adjusted Operating Adjusted Operating MSEK Profit* Margin* MSEK % -9% +20% +31% 18,5% 4 168 704 3 810 587 14,1% Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 * Excluding restructuring costs 19 A Material Difference
Slide 20: Q1 Adjusted Operating Profit
Q1 Adjusted Operating Profit Very strong result and margins despite negative FX effects Adjusted Operating Highlights Profit* MSEK • Negative FX effects of 412 MSEK on sales and 72 MSEK on Operating Profit +20% • Significant savings during the quarter in both direct and indirect costs 98 704 • OPEX
Slide 21: Adjusted Operating Profit and Margin
Adjusted Operating Profit and Margin Substantial profit and margin improvement MSEK Highlights 800 30,0% • Continuous volume improvement 700 -62% combined with lower cost base give high 704 25,0% Operating Profit and Operating Margin 600 622 587 593 18,5% 20,0% • Majority of the cost savings are str
Slide 22: Q1 HEXPOL Compounding
Q1 HEXPOL Compounding Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Sales volumes increased both vs. previous -9% +19% +30% quarter and vs. same period last year • The higher sales volumes were primarily driven 3 906 658 by higher demand from the automotive 3 5
Slide 23: Q1 HEXPOL Engineered Products
Q1 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales were in line with last year 0% +39% +40% • Substantial Operating Profit and Operating Margin improvement following good sales and cost reductions 262 262 46 33 17,6% 12,6% Q1'20 Q1'21 Q1'20 Q1'21 Q1'
Slide 24: Q1 Working Capital
Q1 Working Capital MSEK 1 400 9,0% Highlights 8,0% • Year over year improvement in absolute 1 200 terms while on same level in relation to 7,0% sales 1 000 6,0% • Increase vs previous quarter driven by 800 5,0% temporarily higher accounts receivables and inventory 600 4,0% 3,0% 400 2,0% 200 1,0% 0 0
Slide 25: Q1 Cash Flow
Q1 Cash Flow Cash Flow Highlights MSEK • Strong EBIT offset by temporarily higher working capital 164 • Level of investments below depreciation. 704 Depreciation includes 47 MSEK write offs related to the Jonesborough fire 0 - 383 433 - 52 Depreciation &… Sales of fixed… Cash Flow EBIT Working capit
Slide 26: Q1 Net Debt
Q1 Net Debt Strong financial position 31-mars 31-dec Highlights MSEK 2021 2020 • Strong cash position Cash at hand 1 085 1 200 • Strong and further improved Net Debt/EBITDA ratio Used credit facilities -2 581 -2 793 Net debt -1 496 -1 593 Net debt/EBITDA* 0,58 0,67 * EBITDA is R12 months 26 A Materi
Slide 27: Strong Sales and Lowered Cost Base Gave Best Quarterly Result Ever
Strong Sales and Lowered Cost Base Gave Best Quarterly Result Ever • Strong volume development in all regions despite global supply chain disturbances • Good sales volume development in Americas and Europe and especially China • Sales and volume recovery seen with most customer segments while especi
Slide 28: Focus for 2021
Focus for 2021 @ HEXPOL A Material Difference
Slide 29: Focus for 2021
Focus for 2021 • Handle health and safety of our employees • Continued strong execution of forecasted increased LVP production • Manage volatility in demand • Manage the current challenges in global supply chains and raw material prices • Continue to evaluate our manufacturing footprint • Continue t
Slide 30: Q&A
Q&A @ HEXPOL A Material Difference
Slide 31: www.HEXPOL.com
www.HEXPOL.com 31 A Material Difference