Slide 1: Peter Rosén, Acting CEO and CFO
Peter Rosén Acting CEO and CFO October 23 2020
Slide 2: Q3 2020 Presentation
Q3 2020 Presentation Presented by Agenda • Business Performance • Financial Overview • Cost reductions • Q&A Peter Rosén Acting CEO and CFO
Slide 3: Q3 2020 Key Highlights
Q3 2020 Key Highlights • Covid -19 • All sites up and running, focus on maintaining health of employees • Strong customer focus with fast and stable deliveries noted and appreciated • Sales volumes up substantially compared to previous quarter led by strong recovery with automotive customers but als
Slide 4: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights High profit and margin despite negative Covid-19 impact on sales Sales Adjusted Operating Profit* Adjusted Operating Margin* MSEK MSEK % -22% +2% +30% 4 244 17,8% 583 593 3 328 13,7% Q3'19 Q3'20 Q3'19 Q3'20 Q3'19 Q3'20 * Excluding restructuring costs
Slide 5: Q3 2020 Sales Development
Q3 2020 Sales Development Sales decrease primarily driven by Covid-19 Regional Development Sales development MSEK EUROPE -22% 35% 0% -17% 59% -13% ASIA -5% -27% 6% +3% AMERICAS Share of HEXPOL sales Sales development vs same period LY
Slide 6: YTD 2020 Sales Development
YTD 2020 Sales Development Sales decrease primarily driven by Covid-19 Regional Development Sales development MSEK EUROPE -15% 36% +7% -21% 59% -16% ASIA -15% -1% 5% -3% AMERICAS Share of HEXPOL sales Sales development vs same period LY
Slide 7: Sales Development during 2020
Sales Development during 2020 Good recovery after low Q2 Sales Highlights MSEK • After low second quarter we saw sales -39% +32% volumes improving during third quarter • Primarily automotive but also building and 4 168 construction show good recovery 3 328 • Other customer segments improving more sl
Slide 8: Q3 Financial Overview
Q3 Financial Overview Very strong results and margin Key fig u r es YTD YTD Highlights M SEK Q3 ' 2 0 Q3 ' 1 9 Q3 ' 2 0 Q3 ' 1 9 Sales 3 328 4 244 10 022 11 734 • EBIT of 593 MSEK EBITA, excl. non-recurring items 611 604 1 447 1 777 • EBIT margin 17,8% EBITA margin, excl. non-recurring items, % 18,4
Slide 9: Q3 Adjusted Operating Profit
Q3 Adjusted Operating Profit High result and margin despite lower sales Adjusted Operating Profit* Highlights MSEK • Lower sales impacted operating profit negatively +2% • Significant savings during the quarter in both direct and indirect costs • OPEX well below last year * Excluding restructuring c
Slide 10: Q3 Adjusted Operating Profit and Margin
Q3 Adjusted Operating Profit and Margin Substantial margin improvement MSEK Highlights 800,0 20,0% • Significant savings during the quarter in -62% 17,8% both direct and indirect costs 600,0 14,1% 15,0% • Volume increase vs second quarter in combination with substantially lower costs gave high opera
Slide 11: Q3 HEXPOL Compounding
Q3 HEXPOL Compounding Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin* % • Sales decrease vs LY primarily driven by Covid-19 but also negative FX effects and lower sales prices -22% +1% +31% • Both Europe and Americas showed lower sales vs LY to most customer segments
Slide 12: Q3 HEXPOL Engineered Products
Q3 HEXPOL Engineered Products Sales Adjusted Operating Adjusted Operating Highlights MSEK Profit* MSEK Margin * % • Somewhat lower sales with smaller -9% +14% +25% movements within the product groups • Substantial profit and margin improvement following cost reductions 17,3% 260 41 237 36 13,8% Q3'1
Slide 13: Q3 Working Capital
Q3 Working Capital Continuous improvement after acquisition driven peaks MSEK 1 600 10,0% Highlights 1 400 9,0% • Working capital improved in absolute terms compared to same period last year 8,0% 1 200 7,0% • Working capital in relation to sales improves after acquisitions with higher 1 000 6,0% wor
Slide 14: Q3 Cash Flow
Q3 Cash Flow Strong cash generation Cash Flow Highlights MSEK • Working capital improved further during third quarter of 2020 • Level of investments below depreciation • Strong cash generation during the quarter
Slide 15: Q3 Net Debt
Q3 Net Debt Strong financial position 3 0 Se pt 3 0 Se pt 3 1 - de c M SEK 2020 2019 2019 Highlights • Strong cash position Cash at hand 1 159 1 526 1 624 • Strong and further improved Net debt/EBITDA ratio Used credit facilities -2 676 -4 615 -4 000 Net debt -1 517 -3 089 -2 376 Net debt/EBITDA* 0,
Slide 16: Cost Savings
Cost Savings Employees Some 200 employees are currently on various forms of short time work and furlough compared to some 500 during second quarter In addition, 221 employees left the company during third quarter. Since the end of 2019, 501 employees or 10% of all employees have left the company Cos
Slide 17: Q3 2020 Summary
Q3 2020 Summary • Covid -19 • All sites up and running, focus on maintaining health of employees • Strong customer focus with fast and stable deliveries noted and appreciated • Sales volumes up substantially compared to previous quarter led by strong recovery with automotive customers but also build
Slide 18: Q&A
Q&A @HEXPOL
Slide 19: Thank You
Thank You www.HEXPOL.com @HEXPOL