Slide 1: Georg Brunstam CEO, Peter Rosén CFO
Georg Brunstam CEO Peter Rosén CFO October 22, 2021 1 A Material Difference
Slide 2: Q3 2021 Presentation
Q3 2021 Presentation Presented by Agenda • Business Performance • Financial Overview Georg Brunstam • Focus for 2021 CEO • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Strong sales in a challenging market situation
Strong sales in a challenging market situation • Strong sales - growth in all regions despite major global supply chain disturbances • Strong sales seen with all customer segments in all regions • Supply chain issues with automotive with stop of production towards latter part of the quarter caused c
Slide 5: Strong Execution on Updated Strategy and Increased Customer Focus
Strong Execution on Updated Strategy and Increased Customer Focus • HEXPOL Compounding • Strong sales in all regions • Strong sales in most customer segments • Automotive affected by disturbances from semi conductor shortages • Substantial EBIT improvement driven by good sales and lower cost base •
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: Q3 2021 Sales Development
Q3 2021 Sales Development Strong organic sales growth despite market challenges Regional Development Sales development MSEK EUROPE +23% 39% 55% +37% ASIA +6% 4 163 +19% 4 108 +16% - 55 6% +17% 3 328 AMERICAS Organic Sales Q3'21 @ 2020 FX Q3'21 Q3'20 Acquisitions FX Effects Share of HEXPOL sales Sale
Slide 8: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 9: Q3 Financial Overview
Q3 Financial Overview Strong result despite significant raw material challenges Key figures YTD YTD Highlights – Third Quarter MSEK Q3'21 Q3'20 Q3'21 Q3'20 Sales 4 108 3 328 11 920 10 022 • Operating Profit of 1 105 MSEK including Adjusted EBITA 695 611 2 161 1 447 insurance settlement Adjusted EBIT
Slide 10: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights Sales Adjusted Operating Adjusted Operating MSEK Profit* MSEK Margin* % +23% +14% -7% 4 108 677 593 17,8% 3 328 16,5% Q3'20 Q3'21 Q3'20 Q3'21 Q3'20 Q3'21 * Excluding restructuring costs 10 A Material Difference
Slide 11: Q3 Adjusted Operating Profit
Q3 Adjusted Operating Profit Higher sales partly offset by lower margin of acquisitions and raw material challenges Adjusted Operating Highlights Profit* MSEK • Strong organic sales • As previously communicated, negative +14% impact on gross margin from acquisitions • Further negative impact on gros
Slide 12: Q3 HEXPOL Compounding
Q3 HEXPOL Compounding Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Strong organic sales growth of 17% vs LY while +24% +12% -9% acquisitions add 7% sales. • The higher sales were driven by improvements in all customer segments 3 826 618 552 • Strong and improv
Slide 13: Q3 HEXPOL Engineered Products
Q3 HEXPOL Engineered Products Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Sales well above last year +19% +44% +21% • Overall strong performance HEXPOL Wheels • Substantial Operating Profit and 282 59 Operating Margin improvement following 237 good sales and
Slide 14: Q3 Working Capital
Q3 Working Capital MSEK Highlights 1 600 10,0% 9,0% • Year over year increase primarily driven by 1 400 decision to increase inventory level in the 8,0% 1 200 face of global raw material shortages 7,0% 1 000 6,0% 800 5,0% 4,0% 600 3,0% 400 2,0% 200 1,0% 0 0,0% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 WC WC/Sal
Slide 15: Q3 Cash Flow
Q3 Cash Flow Cash Flow MSEK Highlights • Cashflow affected by accrual for the insurance settlement not yet paid out 123 • EBIT offset by temporarily higher working 1 105 capital driven by increased inventory level - 186 • Level of investments below depreciation 0 - 544 412 - 86 Depreciation Accr Ins
Slide 16: Q3 Net Debt
Q3 Net Debt Strong financial position 30-sep 31-dec Highlights MSEK 2021 2020 • Strong cash position Cash at hand 1 080 1 200 • Strong and further improved Net Debt/EBITDA ratio Used credit facilities -3 206 -2 793 Net debt -2 126 -1 593 Net debt/EBITDA* 0,59 0,67 * EBITDA is R12 months * Excluding
Slide 17: Strong sales in a challenging market situation
Strong sales in a challenging market situation • Strong sales - growth in all regions despite major global supply chain disturbances • Strong sales seen with all customer segments in all regions • Supply chain issues with automotive with stop of production towards latter part of the quarter caused c
Slide 18: Focus for 2021
Focus for 2021 @ HEXPOL A Material Difference
Slide 19: Focus for 2021
Focus for 2021 • Handle health and safety of our employees • Manage volatility in demand • Manage the current challenges in global supply chains and raw material prices • High flexibility required to manage coming LVP production • Continue to evaluate our manufacturing footprint • Continue to execut
Slide 20: Q&A
Q&A @ HEXPOL A Material Difference
Slide 21: www.HEXPOL.com
www.HEXPOL.com 21 A Material Difference