Hexpol Ab Class B · OMXSTO:HPOL_B

Hexpol Ab Class B — Q1 2024 Earnings Presentation

20 slides from Hexpol Ab Class B's earnings presentation, May 26, 2024

  1. Slide 1: April 26, 2024

    April 26, 2024 1 A Material Difference

  2. Slide 2: Q1 2024 Presentation

    Q1 2024 Presentation Presented by Agenda • Business Performance • Financial Overview • Summary Peter Rosén • Q&A Acting CEO and CFO 2 A Material Difference

  3. Slide 3: Business Performance

    Business Performance @ HEXPOL A Material Difference

  4. Slide 4: Stable Beginning With Strong Margins

    Stable Beginning With Strong Margins • First quarter performance • Sales of 5 312 MSEK (5 990) – high Q1’23 comparative figures when demand was stronger and sales prices were higher driven by higher prices on raw materials. Also, fewer days of sales in Q1’2024 • EBIT came in at 905 MSEK (946) • Stro

  5. Slide 5: Stable Beginning With Strong Margins

    Stable Beginning With Strong Margins • M&A • High focus and strong financial position support further acquisitions • HEXPOL Compounding • Sequentially stable demand and sales prices • Automotive demand down some vs. Q1’23 following on somewhat lower light vehicle production volumes • Building and co

  6. 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

  7. 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

  8. Slide 8: Q1 Sales Development

    Q1 Sales Development Regional Development Sales development MSEK EUROPE -11% 40% 54% -11% ASIA -12% -13% 6% +1% +5% AMERICAS Share of HEXPOL sales Sales development vs same period LY 8 A Material Difference

  9. Slide 9: Financial Overview

    Financial Overview @ HEXPOL A Material Difference

  10. Slide 10: Q1 Financial Overview

    Q1 Financial Overview Stable quarter with strong margins Group Summary Key figures Highlights MSEK Q1'24 Q1'23 • Sales of 5 312 MSEK Sales 5 312 5 990 EBITA 939 975 • Operating Profit of 905 MSEK EBITA-Margin, % 17,7 16,3 • Increased Operating Margin of 17,0% Operating Profit 905 946 • Strong Equity

  11. Slide 11: Q1 Financial Highlights

    Q1 Financial Highlights Sales Operating Profit Operating Margin MSEK MSEK % -11% -4% +8% 5 990 5 312 946 905 17,0% 15,8% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 11 A Material Difference

  12. Slide 12: Q1 Operating Profit

    Q1 Operating Profit Operating Profit Highlights MSEK • Lower sales are offset by stronger gross margin and lower OPEX -4% • Stronger gross margin due to better product and price mix • OPEX decrease driven by general cost control 12 A Material Difference

  13. Slide 13: Q1 HEXPOL Compounding

    Q1 HEXPOL Compounding Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Lower demand and sales seen in most markets -12% -4% +9% from building and construction as well as from producers of consumer products. Somewhat lower demand from automotive. Fewer days of 5 617 4 939 sales has ne

  14. Slide 14: Q1 HEXPOL Engineered Products

    Q1 HEXPOL Engineered Products Sales Operating Profit Operating Margin Highlights MSEK MSEK % • Sales in line with LY 0% -7% -7% • Operating Profit and Operating Margin just below LY 373 373 73 68 19,6% 18,2% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 14 A Material Difference

  15. Slide 15: Q1 Working Capital

    Q1 Working Capital MSEK Highlights 2 500 12,0% • Compared to last year, the acquisition of 10,0% Star Thermoplastics added some 21 MSEK 2 000 in working capital 8,0% 1 500 • Working capital in line with Q1 last year, 6,0% both in absolute terms and in relation to sales 1 000 4,0% 500 2,0% 0 0,0% Q1´

  16. Slide 16: Q1 Cash Flow

    Q1 Cash Flow Cash Flow MSEK Highlights • As is normal in first quarter, low cash flow where EBIT was offset by growth in accounts receivables • The growth in accounts receivables is driven by low level at start of the year • No change in underlying terms and conditions 16 A Material Difference

  17. Slide 17: Q1 Net Debt

    Q1 Net Debt Strong financial position 31-mar 31-mar MSEK 2024 2023 Highlights Cash at hand 1 462 1 449 • Strong financial position Used credit facilities -2 923 -3 918 Net debt -1 461 -2 469 Net debt/EBITDA* 0,36 0,62 * EBITDA is R12 months 17 A Material Difference

  18. Slide 18: Stable Beginning With Strong Margins

    Stable Beginning With Strong Margins • First quarter performance • Sales of 5 312 MSEK (5 990) – high Q1’23 comparative figures when demand was stronger and sales prices were higher driven by higher prices on raw materials. Also, fewer days of sales in Q1’2024 • EBIT came in at 905 MSEK (946) • Stro

  19. Slide 19: Q&A

    Q&A @ HEXPOL A Material Difference

  20. Slide 20: www.HEXPOL.com

    www.HEXPOL.com 20 A Material Difference

HEXPOL — Q1 2024 Earnings Presentation on 6ix