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Welcome to HEXPOL Q1, 2018 Report update

April 24, 2018 CEO Mikael Fryklund CFO Karin Gunnarsson

Telephone presentation on April 24, 2018, 13:00 CET

Please call +46 8213 091 (international call)

020-213 091 (national call, Sweden)

08-213 091 (mobile call, Sweden)

and enter meeting code 917 840

April 24, 2018

- 1 -

• Introduction to HEXPOL

• Q1 2018 – HEXPOL Group

• Q1 2018 – Business areas

• Q1 2018 – Summary

• Q & A

April 24, 2018

- 2 -

Agenda

HEXPOL is a world leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets) and wheels made of plastic and rubber materials for forklifts and castor wheel applications (Wheels).

April 24, 2018

- 3 -

HEXPOL – Fast growing with strong margins

HEXPOL’s vision is to be market leader, number one or two, in selected technological or geographical segments, to generate profit, growth and shareholder value.

April 24, 2018

- 4 -

HEXPOL - Our vision guides us

HEXPOL – A well positioned Group

• Two business areas: ‒ HEXPOL Compounding

‒ HEXPOL Engineered Products

• Global presence

• Operations in 10 countries

• Around 4,400 employees

• Headquarters in Malmö, Sweden

• 97 percent of sales outside Sweden

• Shares listed on Nasdaq Stockholm, Large Cap

• Strong global market positions: – Global leading position for Rubber Compounding – Strong European position in Thermoplastic Elastomer Compounding (TPE) – Strong US position for reinforced Polypropylene Compounding (TP) – Global leading position in Gaskets for plate heat exchangers (PHEs) – Global market coverage in Wheels for fork lift trucks and castor wheels

- 5 -

April 24, 2018

HEXPOL – A well positioned Group • True global footprint

• Historical strong sales growth and good profitability

• Well invested and strong cash flow

• Long industrial history with highly experienced and dedicated management and board

• Acquired 28 units with sales, development and production since 2010

• Acquisition oriented – major acquisitions within Compounding: 2010: Elasto, Excel Polymers 2012: Müller Kunststoffe, Robbins 2014: Kardoes, Vigar Rubber Compounding Portage Precision Polymers 2015: RheTech Thermoplastic Compounding (RheTech, RheTech Colors and RheTech Engineered Plastics) 2016: Berwin Group (Berwin Rubber Co Ltd Berwin Industrial Polymers Ltd and Flexi-Cell (UK) Ltd) 2017: Trelleborg Material & Mixing Lesina s.r.o, Valley Processing

April 24, 2018

- 6 -

01 0002 0003 0004 0005 0006 0007 0008 0009 000

10 00011 00012 00013 000

M SEKValley (Apr 2017)

Lesina (Mar 2017)

Berwin (Jun 2016)

RheTech (Jan 2015)

PPP (Dec 2014)

Vigar (Nov 2014)

Kardoes (Aug 2014)

Robbins (Nov 2012)

Müller Kunststoffe (Jan 2012)

EXCEL Polymers (Dec 2010)

ELASTO (Apr 2010)

Gold Key (Sep 2007)

Trostel (May 2005)

Thona (May 2004)

GFD (Jul 2002)

HEXPOL

April 24, 2018

- 7 -

Contribution to sales made by acquisitions in the past years (acquisition month in parenthesis)

HEXPOL – A fast growing Group

• Product Development – New segments (for example: flame retardant) – New products in existing segments (for example: weight saving, environment friendly) – Application oriented

• Increased market share

• Acquisitions mainly within Polymer Compounding – Existing geographical markets (Kardoes, Portage Precision and Valley Processing in US,

Vigar Rubber Compounding in Germany, Berwin Group in UK and Trelleborg Material & Mixing Lesina in Czech Republic)

– New geographical markets (Vigar Rubber Compounding in Spain) – New chemistry (Portage Precision/silicon compounding, RheTech Thermoplastic

Compounding/specialized TP compounding) – New end user segments – Existing end user segments

• Capacity investments in TPE Compounding

April 24, 2018

- 8 -


Raw material manufacturers

Manufacturer of polymer compounds

Rubber and plastic component manufacturers

OEMs End customers

The market:

• Fragmented market – few global players – many local players

• Few industrial consolidators • Few vertically integrated companies

-Rubber -TPE -PP

-Silicone -FKM -PA

- 9 -

April 24, 2018

Business model:

• “Glocal” (local production/JIT) • Application focused (often end user specified) • Customized made to order

HEXPOL Compounding, value chain* (example):

(reinforced)

* Examples of companies, active in different parts of the value chain


http://www.dow.com/

HEXPOL – Sales per geographic area Apr 17- Mar 18

Europe 34%

NAFTA 61%

Asia 5%

- 10 -

HEXPOL – With a stable organisation Two business areas:

• HEXPOL Compounding (93% of sales)

• HEXPOL Engineered Products (7% of sales)

HEXPOL – Organisation and sales distribution

April 24, 2018

Diagram1

Europe 34%

NAFTA 61%

Asia 5%

Sales

HEXPOL – Sales per geographic area Apr 17- Mar 18

4235

7513

653

Sheet1

Sales

Europe 34%423534.2%PIIGS1123%

NAFTA 61%751360.6%

Asia 5%6535.3%

12401

To resize chart data range, drag lower right corner of range.

Main customer segments:

• Automotive industry – Sales around 38% 2017 • Engineering and general industry

• Building and construction

• Transportation

• Energy, oil and gas sector

• Cable and water treatment industries

• Consumer industries

• Medical equipment industries

• Manufacturers of plate heat exchangers

• Manufacturers of forklifts and castor wheels


April 24, 2018

- 11 -

3 190 2 6083 798

7 1978 007 8 036

8 919

11 229 10 87912 230 12 401

0,0

4,0

8,0

12,0

16,0

20,0

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2008 2009* 2010* 2011 2012 2013 2014 2015 2016 2017 Apr 17-Mar 18

Sales OM

M SEK %

- 12 -

*Adjusted for items affecting comparability

HEXPOL – A fast growing Group with strong margins

April 24, 2018

Chart1

20082008

2009*2009*

2010*2010*

20112011

20122012

20132013

20142014

20152015

20162016

20172017

Apr 17- Mar 18Apr 17- Mar 18

Sales

OM

7 197

8 007

3190

9.7

2608

10

3798

12.1

7197

12.4

8007

13.4

8036

15.6

8919

16.3

11229

17.5

10879

17.7

12230

16.2

12401

16.1

Sheet1

SalesOM

2007273011.2

200831909.7

2009*260810

2010*379812.1

2011719712.4

2012800713.4

2013803615.6

2014891916.3

20151122917.5

20161087917.7

20171223016.2

Apr 17- Mar 181240116.1


0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Apr 17-Mar 18

Depreciations Investments

MSEK

April 24, 2018

- 13 -

• Investments in line with/ or below depreciations • Apr 17 - Mar 18: Mainly capacity investments in HEXPOL TPE Compounding and also regular

maintenance investments * tangible fixed assets

HEXPOL – Depreciations & investments*

Chart1

20072007

20082008

20092009

20102010

20112011

20122012

20132013

20142014

20152015

20162016

20172017

Apr 17-Mar 18Apr 17-Mar 18

Depreciations

Investments

68

164

90

105

80

21

84

30

140

102

143

174

141

142

139

127

193

156

196

163

218

189

220

206

Sheet1

DepreciationsInvestments

200768164

200890105

20098021

20108430

2011140102

2012143174

2013141142

2014139127

2015193156

2016196163

2017218189

Apr 17-Mar 18220206


Invest YTD 2014129Depr YTD 2014150

Q1 2014-29Q1 2014-35

Q1 201541Q1 201553

R12141R12168

- 14 -

April 24, 2018

- 14 -

2018 2017 2017MSEK Q1 Q1 Q4

Sales 3,309 3,138 2,926

Operating profit, EBIT 540 532 467

Operating margin, % 16.3 17.0 16.0

Profit after tax 411 379 449

Earnings per share, SEK 1.19 1.10 1.31

Earnings per share excl non-recurring effects of the US tax reform, SEK 1.19 1.10 1.00

• Sales increased 5% • Positive volume development • Highest quarterly operating profit so far • Sequentially improved operating margin • Negative currency effects in sales 153 MSEK and in operating profit 32 MSEK

Q1 2018 – Increased sales and higher result

+5%

+8%

• Sales (including acquisitions) increased 5% to 3,309 MSEK (3,138) ‒ Positive volume development ‒ Sales positively affected by higher sales prices due to increased raw material prices ‒ Negative currency effects of 153 MSEK • In NAFTA increased sales (including Valley Processing) in local currency by 7% ‒ Stable sales to automotive related customers ‒ Improved sales to engineering and general industry and building and constructions ‒ Improved sales to oil and gas and mining from low levels • In Europe increased sales (including Trelleborg Material & Mixing Lesina) by 20% ‒ Stable sales to automotive related customers ‒ Improved sales to engineering and general industry and building and constructions • In Asia increased sales by 22% ‒ Sales increased to automotive related customers in China • Operating profit increased to 540 MSEK (532) ‒ Negative currency effects of 32 MSEK • Operating margin amounted to 16.3% (17.0) ‒ Sequentially increased from 16.0%

April 24, 2018

- 15 -


- 16 -

MSEK 2018 2017 Growth

Sales 3 309 3 138 5%

Currency 153 5%

Ex. Currency 3 462 3 138 10%

Acquisition -210 -6%Ex. Currency and acquisition 3 252 3 138 4%

Quarter 1

April 24, 2018


Engineered sales margin

Q12010Q12009

Q2Q2

Q3Q3

Q4Q4

Q12011Q12010

Q2Q2

Q3Q3

Q4Q4

Q12012Q12011

Q2Q2

Q3Q3

Q4Q4

Q12013Q12012

Q2Q2

Q3Q3

Q4Q4

Q12014Q12013

Q2Q2

&A

Page &P

Net sales

Operating margin

169

0.077

187

0.086

180

0.089

182

0.093

188

0.074

190

0.1

191

0.115

178

0.096

191

0.089

190

0.105

179

0.106

177

0.096

183

0.087

171

0.094

163

0.117

174

0.155

177

0.153

174

0.126

Compunding margin sales

Q12010Q12009

Q2Q2

Q3Q3

Q4Q4

Q12011Q12010

Q2Q2

Q3Q3

Q4Q4

Q12012Q12011

Q2Q2

Q3Q3

Q4Q4

Q12013Q12012

Q2Q2

Q3Q3

Q4Q4

Q12014Q12013

Q2Q2

&A

Page &P

Net sales

Operating margin

581

0.127

779

0.128

770

0.135

950

0.126

1598

0.123

1586

0.133

1652

0.129

1614

0.126

1951

0.131

1931

0.138

1801

0.145

1587

0.134

1831

0.154

1889

0.157

1876

0.163

1749

0.168

1954

0.172

1971

0.171

HEXPOL margin sales

Q12010Q12009

Q2Q2

Q3Q3

Q4Q4

Q12011Q12010

Q2Q2

Q3Q3

Q4Q4

Q12012Q12011

Q2Q2

Q3Q3

Q4Q4

Q12013Q12012

Q2Q2

Q3Q3

Q4Q4

Q12014Q12013

Q2Q2

&A

Page &P

Net sales

Operating Margin

750

0.117

966

0.12

950

0.126

1132

0.121

1786

0.118

1776

0.13

1843

0.128

1792

0.123

2142

0.127

2121

0.135

1980

0.141

1764

0.13

2014

0.148

2060

0.151

2039

0.159

1923

0.167

2131

0.171

2145

0.168

Data

CompoundingEngineered ProductsHEXPOL

Net salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating Margin

2005Q138733812.40%2005Q114313416.08%2005Q153047213.40%

Q239936811.78%Q214813714.19%Q254750512.43%

Q340838511.52%Q313113914.50%Q353952412.24%

Q44214049.33%Q41681486.54%Q45895528.54%

2006Q14614229.33%2006Q11751569.71%2006Q16365789.43%

Q24544368.59%Q21791637.82%Q26335998.37%

Q34394447.29%Q31691737.69%Q36086177.40%

Q44294466.76%Q41821769.89%Q46116227.69%

2007Q146044610.00%2007Q119618211.73%2007Q165662810.52%

Q245144510.64%Q220018716.50%Q265163212.44%

Q349545910.71%Q318419118.48%Q367965012.81%

Q45494898.74%Q419519410.27%Q47446839.14%

2008Q16485368.49%2008Q120419613.73%2008Q18527329.74%

Q26485859.72%Q219819512.63%Q284678010.40%

Q360961410.34%Q318619611.83%Q379580910.69%

Q45208.27%Q41776.21%Q46977.75%

2009Q14818.10%2009Q11664.20%2009Q16477.10%

Q246710.50%Q21403.60%Q26078.90%

Q351914.30%Q31325.30%Q365112.40%

Q455312.50%Q41507.30%Q470311.40%

2010Q158112.70%2010Q11697.70%2010Q175011.70%

Q277912.80%Q21878.60%Q296612.00%

Q377013.50%Q31808.90%Q395012.60%

Q495012.60%Q41829.30%Q4113212.10%

2011Q1159812.30%2011Q11887.40%2011Q1178611.80%

Q2158613.30%Q219010.00%Q2177613.00%

Q3165212.90%Q319111.50%Q3184312.80%

Q4161412.60%Q41789.60%Q4179212.30%

2012Q1195113.10%2012Q11918.90%2012Q1214212.70%

Q2193113.80%Q219010.50%Q2212113.50%

Q3180114.50%Q317910.60%Q3198014.10%

Q4158713.40%Q41779.60%Q4176413.00%

2013Q1183115.40%2013Q11838.70%2013Q1201414.80%

Q2188915.70%Q21719.40%Q2206015.10%

Q3187616.30%Q316311.70%Q3203915.90%

Q4174916.80%Q417415.50%Q4192316.70%

2014Q1195417.20%2014Q117715.30%2014Q1213117.10%

Q2197117.10%Q217412.60%Q2214516.80%

Q3Q3Q3

Q4Q4Q4

Operating ProfitOperating Profit (R12)Operating ProfitOperating Profit (R12)Operating ProfitOperating (R12)

2005Q148442005Q123232005Q17167

Q24747Q22122Q26869

Q34752Q31921Q36673

Q43945Q41119Q45064

2006Q143442006Q117172006Q16061

Q23942Q21415Q25357

Q33238Q31314Q34552

Q42936Q41816Q44752

2007Q146372007Q123172007Q16954

Q24839Q23322Q28161

Q35344Q33427Q38771

Q44849Q42028Q46877

2008Q155512008Q128292008Q18380

Q26355Q22527Q28882

Q36357Q32224Q38581

Q443Q411Q454

2009Q1392009Q172009Q1-52

Q249Q25Q254

Q374Q37Q381

Q469Q411Q480

2010Q1742010Q1132010Q187

Q2100Q216Q2116

Q3104Q316Q3120

Q4120Q417Q473

2011Q11962011Q1142011Q1210

Q2211Q219Q2230

Q3213Q322Q3235

Q4203Q417Q4220

2012Q12552012Q1172012Q1272

Q2267Q220Q2287

Q3261Q319Q3280

Q4237Q417Q4250

2013Q12822013Q1162013Q1298

Q2296Q216Q2312

Q3305Q319Q3324

Q4294Q427Q4321

2014Q13372014Q1272014Q1364

Q2338Q222Q2360

Q3Q3Q3

Q4Q4Q4

Data Sales

HEXPOL Group - Acquisition impacts on Sales

YearHEXPOLGFDThonaStellana USGold KeyELASTOEXCEL Pol.HKM (Jan 2012)HEXPOL

19983810000000381

19994120000000412

20004640000000464

20014840000000484

2002508124000000631

2003546330000000876

2004614351649000001,614

20056783971,0983200002,205HEXPOL809,214

20067604111,2388000002,489GFD443,473

20078803761,265611480002,730Thona1,817,177

20088684051,326655260003,190Stellana US79,503

20096222271,083696070002,608GoldKey744,012

20107542851,4887771728519203,798Elasto385,177

20118104431,817807443852,9187,196Excel2,918,033

Oct 2011- Sep 20127,196,589

Pro forma

HEXPOLGFD (Jul 2002)Thona (May 2004)Trostel (May 2005)Gold Key (Sep 2007)ELASTO (Apr 2010)EXCEL Polymers (Dec 2010)Müller Kunststoffe (Jan 2012)Robbins (Nov 2012)HEXPOL

20025081240000000631

20035463300000000876

200496506490000001,614

20051,07501,09832000002,205

20062,4090080000002,489

20072,58200014800002,730

20082,66400052600003,190

20092,608000000002,608

20103,3210000285192003,798

20113,89400003852,918007,197

20127,523000000441438,007

20137,68700000003498,036

Chart Sales

200220022002200220022002200220022002

200320032003200320032003200320032003

200420042004200420042004200420042004

200520052005200520052005200520052005

200620062006200620062006200620062006

200720072007200720072007200720072007

200820082008200820082008200820082008

200920092009200920092009200920092009

201020102010201020102010201020102010

201120112011201120112011201120112011

201220122012201220122012201220122012

201320132013201320132013201320132013

HEXPOL

GFD (Jul 2002)

Thona (May 2004)

Trostel (May 2005)

Gold Key (Sep 2007)

ELASTO (Apr 2010)



Robbins (Nov 2012)

M SEK

507.7

123.6

0

0

0

0

0

0

0

545.9

329.6

0

0

0

0

0

0

0

965

0

649

0

0

0

0

0

0

1075

0

1098

32

0

0

0

0

0

2409

0

0

80

0

0

0

0

0

2582

0

0

0

148

0

0

0

0

2664

0

0

0

526

0

0

0

0

2608

0

0

0

0

0

0

0

0

3321

0

0

0

0

285

192

0

0

3894

0

0

0

0

385

2918

0

0

7523

0

0

0

0

0

0

441

43

7687

349

Quarter tables

201420132014201420132014

MSEKQ2Q2Q1MSEKQ2Q2Q1

Net Sales2,1452,0602,1314%Net Sales2,1452,0602,131Länkade4%

Operating Profit, EBIT36031236415%Operating Profit, EBIT36031236415%

Operating Margin, %16.815.117.1Operating Margin, %16.815.117.1

Profit after tax25822826213%Profit after tax25822826213%

Earnings per share, SEK7.506.627.6113%Earnings per share, SEK7.506.627.61

Operating cash flow4123852877%Operating cash flow4123852877%

Net debt1331,013312-87%

Net debt/equity, multiple0.00.30.1

Equity/assets ratio, %61.349.661.5

Net SalesOperating ProfitOperating Margin, %

201420132014201420132014201420132014

MSEKQ2Q2Q1Q2Q2Q1Q2Q2Q1

HEXPOL Compounding1,9711,8891,95433829633717.115.717.2

HEXPOL Engineered Products17417117722162712.69.415.3

YTD Tables

Apr-JunJan - JunFull-yearJan 2013-Full-yearJul 2013- Jun 2014

MSEK20142013201420132013Dec 20132013

Net Sales2,1452,0604,2764,0748,0078,2098,0368,2385%

Operating Profit, EBIT3603127246101,0691,1831,2551,36919%

Operating Margin, %16.815.116.915.013.414.815.616.6

Profit after tax2582285204447538299301,00617%

Earnings per share, SEK7.506.6215.1112.9021.8824.0927.0229.2317%

Operating cash flow4123856996251,2091,2831,4181,49212%

Net debt1759851,215312-82%

Equity/assets ratio, %62.750.849.261.5

Return on capital employed, %30.825.324.025.127.029.1

Ej med i Q2 2013


MSEK201320122013201220132012

HEXPOL Compounding7,3457,2701,17799616.013.7

HEXPOL Engineered Products691737787311.39.9

Jan - Mar

MSEK20142013

Investments2921

Depreciations/Amortizations3538

Sales Growth

Quarter 1Jan - DecJan-Sep

MSEK20182017Growth20172016Growth20152014Growth

Sales3,3093,1385%12,23010,87912%8,6336,58831%

Currency1535%-5-0%-1,154-17%

Ex. Currency3,4623,13810%12,22510,87912%

Acquisition-210-6%-782-7%

Ex. Currency and acquisition3,2523,1384%11,44310,8795%7,47914%

HEXPOL Profit + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Operating Profit

Operating (R12)

71

67

68

69

66

73

50

64

60

61

53

57

45

52

47

52

69

54

81

61

87

71

68

77

83

80

HEXPOL Sales + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Net sales

Net Sales (R12)

530

472

547

505

539

524

589

552

636

578

633

599

608

617

611

622

656

628

651

632

679

650

744

683

852

732

Engineering Sales + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Net sales

Net Sales (R12)

143

134

148

137

131

139

168

148

175

156

179

163

169

173

182

176

196

182

200

187

184

191

195

194

204

196

Compunding Profit + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Operating Profit

Operating Profit (R12)

48

44

47

47

47

52

39

45

43

44

39

42

32

38

29

36

46

37

48

39

53

44

48

49

55

51

Engineering Profit + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Operating Profit


23

23

21

22

19

21

11

19

17

17

14

15

13

14

18

16

23

17

33

22

34

27

20

28

28

29

Compunding Sales + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Net sales

Net Sales (R12)

387

338

399

368

408

385

421

404

461

422

454

436

439

444

429

446

460

446

451

445

495

459

549

489

648

536

Blad3

hiuhio

iknhikn

knkln

- Strong balance sheet, well equipped for further expansion

April 24, 2018

- 17 -

2018 2017 2017MSEK Q1 Q1 Q4

Sales 3,309 3,138 2,926

Operating profit, EBIT 540 532 467

Operating margin, % 16.3 17.0 16.0

Profit after tax 411 379 449

Earnings per share, SEK 1.19 1.10 1.31

Earnings per share excl. non-recurring effects of the US tax reform, SEK 1.19 1.10 1.00

Operating cash flow 302 435 609

Net cash 267 981 -27

Equity/assets ratio, % 68 75 68

Return on capital employed, % R12 24.7 26.2 25.1


Strong balance sheet and net cash of 267 MSEK provides scope for continued expansion.

April 24, 2018

• HEXPOL Compounding – Increased sales – Positive volume development

• HEXPOL Engineered Products – Increased sales – Increased operating profit

- 18 -

2018 2017 2017 2018 2017 2017 2018 2017 2017MSEK Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4

HEXPOL Compounding 3 057 2 910 2 704 506 505 440 16.6 17.4 16.3

HEXPOL Engineered Products 252 228 222 34 27 27 13.5 11.8 12.2

Operating Margin, %Operating ProfitNet Sales

Q1 2018 – Business areas Increased sales and higher result

Engineered sales margin

Q12010Q12009

Q2Q2

Q3Q3

Q4Q4

Q12011Q12010

Q2Q2

Q3Q3

Q4Q4

Q12012Q12011

Q2Q2

Q3Q3

Q4Q4

Q12013Q12012

Q2Q2

Q3Q3

Q4Q4

Q12014Q12013

Q2Q2

&A

Page &P

Net sales

Operating margin

169

0.077

187

0.086

180

0.089

182

0.093

188

0.074

190

0.1

191

0.115

178

0.096

191

0.089

190

0.105

179

0.106

177

0.096

183

0.087

171

0.094

163

0.117

174

0.155

177

0.153

174

0.126

Compunding margin sales

Q12010Q12009

Q2Q2

Q3Q3

Q4Q4

Q12011Q12010

Q2Q2

Q3Q3

Q4Q4

Q12012Q12011

Q2Q2

Q3Q3

Q4Q4

Q12013Q12012

Q2Q2

Q3Q3

Q4Q4

Q12014Q12013

Q2Q2

&A

Page &P

Net sales

Operating margin

581

0.127

779

0.128

770

0.135

950

0.126

1598

0.123

1586

0.133

1652

0.129

1614

0.126

1951

0.131

1931

0.138

1801

0.145

1587

0.134

1831

0.154

1889

0.157

1876

0.163

1749

0.168

1954

0.172

1971

0.171

HEXPOL margin sales

Q12010Q12009

Q2Q2

Q3Q3

Q4Q4

Q12011Q12010

Q2Q2

Q3Q3

Q4Q4

Q12012Q12011

Q2Q2

Q3Q3

Q4Q4

Q12013Q12012

Q2Q2

Q3Q3

Q4Q4

Q12014Q12013

Q2Q2

&A

Page &P

Net sales

Operating Margin

750

0.117

966

0.12

950

0.126

1132

0.121

1786

0.118

1776

0.13

1843

0.128

1792

0.123

2142

0.127

2121

0.135

1980

0.141

1764

0.13

2014

0.148

2060

0.151

2039

0.159

1923

0.167

2131

0.171

2145

0.168

Data

CompoundingEngineered ProductsHEXPOL

Net salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating Margin

2005Q138733812.40%2005Q114313416.08%2005Q153047213.40%

Q239936811.78%Q214813714.19%Q254750512.43%

Q340838511.52%Q313113914.50%Q353952412.24%

Q44214049.33%Q41681486.54%Q45895528.54%

2006Q14614229.33%2006Q11751569.71%2006Q16365789.43%

Q24544368.59%Q21791637.82%Q26335998.37%

Q34394447.29%Q31691737.69%Q36086177.40%

Q44294466.76%Q41821769.89%Q46116227.69%

2007Q146044610.00%2007Q119618211.73%2007Q165662810.52%

Q245144510.64%Q220018716.50%Q265163212.44%

Q349545910.71%Q318419118.48%Q367965012.81%

Q45494898.74%Q419519410.27%Q47446839.14%

2008Q16485368.49%2008Q120419613.73%2008Q18527329.74%

Q26485859.72%Q219819512.63%Q284678010.40%

Q360961410.34%Q318619611.83%Q379580910.69%

Q45208.27%Q41776.21%Q46977.75%

2009Q14818.10%2009Q11664.20%2009Q16477.10%

Q246710.50%Q21403.60%Q26078.90%

Q351914.30%Q31325.30%Q365112.40%

Q455312.50%Q41507.30%Q470311.40%

2010Q158112.70%2010Q11697.70%2010Q175011.70%

Q277912.80%Q21878.60%Q296612.00%

Q377013.50%Q31808.90%Q395012.60%

Q495012.60%Q41829.30%Q4113212.10%

2011Q1159812.30%2011Q11887.40%2011Q1178611.80%

Q2158613.30%Q219010.00%Q2177613.00%

Q3165212.90%Q319111.50%Q3184312.80%

Q4161412.60%Q41789.60%Q4179212.30%

2012Q1195113.10%2012Q11918.90%2012Q1214212.70%

Q2193113.80%Q219010.50%Q2212113.50%

Q3180114.50%Q317910.60%Q3198014.10%

Q4158713.40%Q41779.60%Q4176413.00%

2013Q1183115.40%2013Q11838.70%2013Q1201414.80%

Q2188915.70%Q21719.40%Q2206015.10%

Q3187616.30%Q316311.70%Q3203915.90%

Q4174916.80%Q417415.50%Q4192316.70%

2014Q1195417.20%2014Q117715.30%2014Q1213117.10%

Q2197117.10%Q217412.60%Q2214516.80%

Q3Q3Q3

Q4Q4Q4

Operating ProfitOperating Profit (R12)Operating ProfitOperating Profit (R12)Operating ProfitOperating (R12)

2005Q148442005Q123232005Q17167

Q24747Q22122Q26869

Q34752Q31921Q36673

Q43945Q41119Q45064

2006Q143442006Q117172006Q16061

Q23942Q21415Q25357

Q33238Q31314Q34552

Q42936Q41816Q44752

2007Q146372007Q123172007Q16954

Q24839Q23322Q28161

Q35344Q33427Q38771

Q44849Q42028Q46877

2008Q155512008Q128292008Q18380

Q26355Q22527Q28882

Q36357Q32224Q38581

Q443Q411Q454

2009Q1392009Q172009Q1-52

Q249Q25Q254

Q374Q37Q381

Q469Q411Q480

2010Q1742010Q1132010Q187

Q2100Q216Q2116

Q3104Q316Q3120

Q4120Q417Q473

2011Q11962011Q1142011Q1210

Q2211Q219Q2230

Q3213Q322Q3235

Q4203Q417Q4220

2012Q12552012Q1172012Q1272

Q2267Q220Q2287

Q3261Q319Q3280

Q4237Q417Q4250

2013Q12822013Q1162013Q1298

Q2296Q216Q2312

Q3305Q319Q3324

Q4294Q427Q4321

2014Q13372014Q1272014Q1364

Q2338Q222Q2360

Q3Q3Q3

Q4Q4Q4

Data Sales

HEXPOL Group - Acquisition impacts on Sales

YearHEXPOLGFDThonaStellana USGold KeyELASTOEXCEL Pol.HKM (Jan 2012)HEXPOL

19983810000000381

19994120000000412

20004640000000464

20014840000000484

2002508124000000631

2003546330000000876

2004614351649000001,614

20056783971,0983200002,205HEXPOL809,214

20067604111,2388000002,489GFD443,473

20078803761,265611480002,730Thona1,817,177

20088684051,326655260003,190Stellana US79,503

20096222271,083696070002,608GoldKey744,012

20107542851,4887771728519203,798Elasto385,177

20118104431,817807443852,9187,196Excel2,918,033

Oct 2011- Sep 20127,196,589

Pro forma

HEXPOLGFD (Jul 2002)Thona (May 2004)Trostel (May 2005)Gold Key (Sep 2007)ELASTO (Apr 2010)EXCEL Polymers (Dec 2010)Müller Kunststoffe (Jan 2012)Robbins (Nov 2012)HEXPOL

20025081240000000631

20035463300000000876

200496506490000001,614

20051,07501,09832000002,205

20062,4090080000002,489

20072,58200014800002,730

20082,66400052600003,190

20092,608000000002,608

20103,3210000285192003,798

20113,89400003852,918007,197

20127,523000000441438,007

20137,68700000003498,036

Chart Sales

200220022002200220022002200220022002

200320032003200320032003200320032003

200420042004200420042004200420042004

200520052005200520052005200520052005

200620062006200620062006200620062006

200720072007200720072007200720072007

200820082008200820082008200820082008

200920092009200920092009200920092009

201020102010201020102010201020102010

201120112011201120112011201120112011

201220122012201220122012201220122012

201320132013201320132013201320132013

HEXPOL

GFD (Jul 2002)

Thona (May 2004)

Trostel (May 2005)

Gold Key (Sep 2007)

ELASTO (Apr 2010)



Robbins (Nov 2012)

M SEK

507.7

123.6

0

0

0

0

0

0

0

545.9

329.6

0

0

0

0

0

0

0

965

0

649

0

0

0

0

0

0

1075

0

1098

32

0

0

0

0

0

2409

0

0

80

0

0

0

0

0

2582

0

0

0

148

0

0

0

0

2664

0

0

0

526

0

0

0

0

2608

0

0

0

0

0

0

0

0

3321

0

0

0

0

285

192

0

0

3894

0

0

0

0

385

2918

0

0

7523

0

0

0

0

0

0

441

43

7687

349

Quarter tables

201420132014201420132014

MSEKQ2Q2Q1MSEKQ2Q2Q1

Net Sales2,1452,0602,1314%Net Sales2,1452,0602,131Länkade4%

Operating Profit, EBIT36031236415%Operating Profit, EBIT36031236415%

Operating Margin, %16.815.117.1Operating Margin, %16.815.117.1

Profit after tax25822826213%Profit after tax25822826213%

Earnings per share, SEK7.506.627.6113%Earnings per share, SEK7.506.627.61

Operating cash flow4123852877%Operating cash flow4123852877%

Net debt175985312-82%

Net debt/equity, multiple0.00.30.1

Equity/assets ratio, %62.750.861.5


201820172017201820172017201820172017

MSEKQ1Q1Q4Q1Q1Q4Q1Q1Q4

HEXPOL Compounding3,0572,9102,70450650544016.617.416.3

HEXPOL Engineered Products25222822234272713.511.812.2

YTD Tables

Apr-JunJan - JunFull-yearJan 2013-Full-yearJul 2013- Jun 2014

MSEK20142013201420132013Dec 20132013

Net Sales2,1452,0604,2764,0748,0078,2098,0368,2385%

Operating Profit, EBIT3603127246101,0691,1831,2551,36919%

Operating Margin, %16.815.116.915.013.414.815.616.6

Profit after tax2582285204447538299301,00617%

Earnings per share, SEK7.506.6215.1112.9021.8824.0927.0229.2317%

Operating cash flow4123856996251,2091,2831,4181,49212%

Net debt1759851,215312-82%

Equity/assets ratio, %62.750.849.261.5

Return on capital employed, %30.725.324.025.127.029.1

Ej med i Q2 2013


MSEK201320122013201220132012

HEXPOL Compounding7,3457,2701,17799616.013.7

HEXPOL Engineered Products691737787311.39.9

Jan - Mar

MSEK20142013

Investments2921

Depreciations/Amortizations3538

Sales Growth

Quarter 2

MSEK20142013Growth

Sales2,1452,0604%

Currency-25-1%

Ex. Currency2,1202,0603%

HEXPOL Profit + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Operating Profit

Operating (R12)

71

67

68

69

66

73

50

64

60

61

53

57

45

52

47

52

69

54

81

61

87

71

68

77

83

80

HEXPOL Sales + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Net sales

Net Sales (R12)

530

472

547

505

539

524

589

552

636

578

633

599

608

617

611

622

656

628

651

632

679

650

744

683

852

732

Engineering Sales + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Net sales

Net Sales (R12)

143

134

148

137

131

139

168

148

175

156

179

163

169

173

182

176

196

182

200

187

184

191

195

194

204

196

Compunding Profit + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Operating Profit


48

44

47

47

47

52

39

45

43

44

39

42

32

38

29

36

46

37

48

39

53

44

48

49

55

51

Engineering Profit + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Operating Profit


23

23

21

22

19

21

11

19

17

17

14

15

13

14

18

16

23

17

33

22

34

27

20

28

28

29

Compunding Sales + R12

Q12005Q12005

Q2Q2

Q3Q3

Q4Q4

Q12006Q12006

Q2Q2

Q3Q3

Q4Q4

Q12007Q12007

Q2Q2

Q3Q3

Q4Q4

Q12008Q12008

&A

Page &P

Net sales

Net Sales (R12)

387

338

399

368

408

385

421

404

461

422

454

436

439

444

429

446

460

446

451

445

495

459

549

489

648

536

Blad3

hiuhio

iknhikn

knkln

0%

4%

8%

12%

16%

20%

24%

0

500

1000

1500

2000

2500

3000

3500

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

2013 2014 2015 2016 2017 18

Net sales Operating margin

• Sales increased 5% to 3,057 MSEK (2,910) – Positive volume development

• Operating profit improved to 506 MSEK (505)

– Operating margin amounted to 16.6% (17.4) – Compared with the second half of 2017 the operating margin increased from 16.3% to 16.6%

April 24, 2018

Net sales & operating margin

MSE

K

- 19 -

Q1 2018 – HEXPOL Compounding Increased sales

• HEXPOL Compounding NAFTA – increased sales in local currency

– Stable sales to automotive related customers – Improved sales to engineering and general industry, building and

constructions – Improved sales to oil and gas and mining from low levels

• HEXPOL Compounding Europe – increased sales – Stable sales to automotive related customers – Improved sales to engineering and general industry and building and

constructions

• HEXPOL Compounding Asia – significantly increased sales – Increased sales to automotive related customers in China

• HEXPOL TPE Compounding – significantly higher sales

• HEXPOL TP Compounding – increased sales in local currency – Increased sales mainly to automotive related customers

April 24, 2018

- 20 -

Q1 2018 – HEXPOL Compounding Increased sales

• Net sales increased to 252 MSEK (228) – Increased sales in both HEXPOL Wheels and HEXPOL Gaskets

• Operating profit increased to 34 MSEK (27) • Operating margin improved to 13.5% (11.8)

April 24, 2018

Net sales & operating margin

MSE

K

0%2%4%6%8%10%12%14%16%18%

0

50

100

150

200

250

300

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

2013 2014 2015 2016 2017 18

Net sales Operating margin

- 21 -

Q1 2018 – HEXPOL Engineered Products Increased sales

• Sales increased by 5% to 3,309 MSEK (3,138)

• Positive volume development

• Operating profit increased to 540 MSEK (532)

• Operating margin amounted to 16.3% (17.0), sequentially increased from 16.0%

• Operating cash flow amounted to 302 MSEK (435)

• Earnings per share increased to 1.19 SEK (1.10)

• Strong balance sheet, net cash of 267 MSEK

April 24, 2018

- 22 -


- 23 -

Q & A

April 24, 2018

Thank You!

April 24, 2018

- 24 -

Welcome to�HEXPOL�Q1, 2018 Report updateSlide Number 2HEXPOL – Fast growing with strong margins�HEXPOL - Our vision guides us�HEXPOL – A well positioned GroupHEXPOL – A well positioned Group�HEXPOL – A fast growing Group�HEXPOL – A fast growing Group�HEXPOL – A fast growing Group�HEXPOL – Organisation and sales distribution�HEXPOL – A fast growing Group�HEXPOL – A fast growing Group with strong margins�Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24

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