Slide 1: Q1 2023 Presentation
Georg Brunstam CEO Peter Rosén CFO April 28, 2023 1 A Material Difference
Slide 2: Q1 2023 Presentation Agenda
Q1 2023 Presentation Presented by Agenda • Business Performance • Financial Overview Georg Brunstam • Focus going forward CEO • Q&A Peter Rosén CFO 2 A Material Difference
Slide 3: Business Performance
Business Performance @ HEXPOL A Material Difference
Slide 4: Continued Growth and Strong Margin – Our Best Quarter To Date
Continued Growth and Strong Margin – Our Best Quarter To Date • Best Quarter Ever – So Far • Good sales in all regions and product segments • Automotive sales improved • Continued execution of our strong business model where price management is crucial • Good product and price mix • Record quarterly
Slide 5: Continued Growth and Strong Margin – Our Best Quarter To Date
Continued Growth and Strong Margin – Our Best Quarter To Date • HEXPOL Compounding • Good sales in all regions and product areas • Sales to automotive segments show improvement but still varied development across markets • Good development in Americas while high uncertainty in Europe, with lower sal
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: Q1 Sales Development
Q1 Sales Development Regional Development Sales development MSEK EUROPE +16% 40% 55% +14% ASIA 463 5 990 +7% 5 527 +17% 5% 5 173 0% +18% AMERICAS Organic Sales Q1'23 @ 2022 FX Q1'23 Q1'22 Acquisitions FX Effects Share of HEXPOL sales Sales development vs same period LY 8 A Material Difference
Slide 9: Financial Overview
Financial Overview @ HEXPOL A Material Difference
Slide 10: Q1 Financial Overview
Q1 Financial Overview Record high quarterly result Key figures Highlights MSEK Q1'23 Q1'22 Sales 5 990 5 173 • High sales of 5 990 MSEK, an increase of 16% EBITA 975 797 compared to Q1’22 EBITA Margin, % 16,3 15,4 • Operating Profit of 946 MSEK, an increase of 22% Operating Profit 946 775 compared t
Slide 11: Q1 Financial Highlights
Q1 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % +16% +22% +5% 5 990 5 173 946 15,0% 15,8% 775 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 11 A Material Difference
Slide 12: Q1 Operating Profit
Q1 Operating Profit Higher sales and stronger gross margin drive higher operating profit Operating Profit Highlights MSEK • Higher sales and stronger gross margin drive higher operating profit +22% • Stronger gross margin due to better product and price mix 83 159 946 • OPEX increase primarily drive
Slide 13: Q1 HEXPOL Compounding
Q1 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Strong sales increase vs LY primarily driven by +16% +21% +4% by acquisitions of 7% but also positive FX effects • Good development in Americas while high 5 617 uncertainty in Europe, with lower sales to e.g. 4 84
Slide 14: Q1 HEXPOL Engineered Products
Q1 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales well above last year, not least driven +12% +35% +20% by positive development in Asia • Overall strong performance in all product areas 373 73 332 • Operating Profit well above LY 54 19,6% 16,3% • Hi
Slide 15: Q1 Working Capital
Q1 Working Capital MSEK Highlights 3 000 14,0% • Compared to last year, the acquisitions of 2 500 12,0% almaak and McCann added some 340 MSEK in working capital 10,0% 2 000 • Working capital in relation to sales 8,0% decreases following on general 1 500 improvement 6,0% 1 000 4,0% 500 2,0% 0 0,0% Q1
Slide 16: Q1 Cash Flow
Q1 Cash Flow Cash Flow MSEK Highlights • Stable cash flow in the quarter where strong EBIT was offset by growth in accounts receivables following on strong sales towards end of quarter 130 946 - 354 593 - 129 EBIT Depreciation Working capital Investments Cash Flow 16 A Material Difference
Slide 17: Q1 Net Debt
Q1 Net Debt Strong financial position 31-mars 31-dec Highlights MSEK 2023 2022 • Strong cash position Cash at hand 1 449 1 541 Used credit facilities -3 918 -4 386 Net debt -2 469 -2 845 Net debt/EBITDA* 0,62 0,75 * EBITDA is R12 months 17 A Material Difference
Slide 18: Continued Growth and Strong Margin – Best Quarter To Date
Continued Growth and Strong Margin – Best Quarter To Date • Best Quarter Ever – So Far • Good sales in all regions and product segments • Automotive sales improved • Continued execution of our strong business model where price management is crucial • Good product and price mix • Record quarterly EBI
Slide 19: Focus Going Forward
Focus Going Forward @ HEXPOL A Material Difference
Slide 20: Focus Going Forward
Focus Going Forward • 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 strategy including: • Active M&A • Further development of o
Slide 21: Q&A
Q&A @ HEXPOL A Material Difference
Slide 22: www.HEXPOL.com
www.HEXPOL.com 22 A Material Difference