Slide 1: Peter Rosén, Acting CEO and CFO
Peter Rosén Acting CEO and CFO April 28 2020
Slide 2: Q1 2020 Presentation
Q1 2020 Presentation Presented by Agenda • Business Performance • Financial Overview • Special topic: Status on Preferred integration • Q&A Peter Rosén Acting CEO and CFO
Slide 3: Q1 2020 Key Highlights
Q1 2020 Key Highlights • Covid -19 • All sites are up and running, currently no Covid-19 cases amongst employees • No major supply or delivery issues • Lower demand first seen during March, specifically negative impact with automotive customers • Considerable negative impact on demand going forward,
Slide 4: Q1 2020 Financial Highlights
Q1 2020 Financial Highlights Sales increase driven by acquisition Net Sales Adjusted Operating Profit* Adjusted Earnings Per Share* MSEK MSEK SEK +10% 0% +2% 4 168 3 805 586 587 1,27 1,29 Q1'19 Q1'20 Q1'19 Q1'20 Q1'19 Q1'20 * Excluding restructuring costs
Slide 5: Q1 2020 Sales Development
Q1 2020 Sales Development Sales growth driven by acquisition Regional Development Sales development MSEK EUROPE +10% +15% -9% 35% +4% 4 168 61% -4% ASIA 3 805 +20% 4% -2% AMERICAS Q1'19 Acquisitions Organic FX Q1'20 Share of HEXPOL sales Sales development vs same period LY
Slide 6: Q1 Financial Overview
Q1 Financial Overview Result in line with last year but stronger cash flow Key figures Jan-Mar Jan-Mar Full Year Apr 19- Highlights MSEK 2020 2019 2019 Mar 20 Sales 4 168 3 805 15 508 15 871 • Adjusted EBITA in line with last year EBITA, excl. non-recurring items 607 607 2 320 2 320 EBITA margin, ex
Slide 7: Q1 Adjusted Operating Profit
Q1 Adjusted Operating Profit Stable result while margin down affected by acquisition and lower organic volume Adjusted Operating Profit* Highlights MSEK • Operating profit on same level as same period last year 0% • Higher sales offset by lower operating margin 77 0 • The lower margin is driven by t
Slide 8: Q1 HEXPOL Compounding
Q1 HEXPOL Compounding Sales increase driven by acquisition Net Sales Adjusted Operating Profit* Highlights MSEK MSEK • Sales increase driven by the acquired Preferred business in July 2019 +10% +0% • Americas increased sales to most customer segments driven by acquistion. Organic sales down primaril
Slide 9: Q1 HEXPOL Engineered Products
Q1 HEXPOL Engineered Products Stable sales and operating profit Net Sales Operating Profit Highlights MSEK MSEK • Stable sales with smaller movements -2% 0% within the product groups • Stable margins and operating profit 266 262 33 33 Q1'19 Q1'20 Q1'19 Q1'20
Slide 10: Q1 Working Capital
Q1 Working Capital Improvement after acquisition driven peaks MSEK Highlights 1 600 9,5% • Working capital improved in absolute 1 400 9,0% terms compared to same period last year 1 200 • Working capital in relation to sales 8,5% improves when acquisitions are integrated 1 000 into HEXPOL way of work
Slide 11: Q1 Cash Flow
Q1 Cash Flow Strong operating cash flow Cash Flow Highlights MSEK • Working capital relatively flat for the first 135 quarter of 2020 0 -74 • Level of investments below depreciation 537 527 -71 • EBIT is largely translated into cash IT l ts ts w EB … p i ta se en Fl o ca s io n& g da s tm as h i at
Slide 12: Q1 Net Debt
Q1 Net Debt Strong financial position Jan-Mar Jan-Mar Full Year Highlights MSEK 2020 2019 2019 • Strong cash position Cash at hand 2 082 1 219 1 624 • Increased use of credit facilities compared to same Used credit facilities -3 958 -2 387 -4 000 period last year driven by acquisition Net debt -1 87
Slide 13: Integration of Preferred Compounding
Integration of Preferred Compounding The integration follows plan Cost savings Facts (2018) Sales: Approx 240 MUSD Q3 Closing of Preferred head office and Employees: 540 FTEs 2019 initial adjustment of organisation Sites: 6 (USA & MEX) 2020 Business with lower margin ~5 MUSD compared to HEXPOL Group
Slide 14: Covid-19 Summary of implications
Covid -19 Summary of implications • Impact on demand • Q1 saw lower demand from automotive specifically but also from other customer groups • Q2 will see significantly lower demand compared to first quarter despite expected slow start up of automotive production in Europe and Americas • High uncerta
Slide 15: Q1 2020 Summary
Q1 2020 Summary • Covid -19 • It impacted the business in first quarter and will have further substantial negative impact, not least during second quarter • Increased sales while Preferred acquisition impacts margin negatively • Sales increase driven by acquisitions and positive FX effects • Lower o
Slide 16: Q&A
Q&A @HEXPOL
Slide 17: Thank You
Thank You www.HEXPOL.com @HEXPOL