Welcome to HEXPOLinvestors.hexpol.com/sites/default/files/report/hexpol_q12018.pdfforklifts and...
Transcript of Welcome to HEXPOLinvestors.hexpol.com/sites/default/files/report/hexpol_q12018.pdfforklifts and...
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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
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• Introduction to HEXPOL
• Q1 2018 – HEXPOL Group
• Q1 2018 – Business areas
• Q1 2018 – Summary
• Q & A
April 24, 2018
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Agenda
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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
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HEXPOL – Fast growing with strong margins
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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
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HEXPOL - Our vision guides us
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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
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April 24, 2018
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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
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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
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Contribution to sales made by acquisitions in the past years (acquisition month in parenthesis)
HEXPOL – A fast growing Group
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• 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
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HEXPOL – A fast growing Group
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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
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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
HEXPOL – A fast growing Group
http://www.dow.com/
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HEXPOL – Sales per geographic area Apr 17- Mar 18
Europe 34%
NAFTA 61%
Asia 5%
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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
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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
HEXPOL – A fast growing Group
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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 %
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*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
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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
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• 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
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Invest YTD 2014129Depr YTD 2014150
Q1 2014-29Q1 2014-35
Q1 201541Q1 201553
R12141R12168
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April 24, 2018
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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%
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• 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
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Q1 2018 – Increased sales and higher result
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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
Q1 2018 – 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)
EXCEL Polymers (Dec 2010)
Müller Kunststoffe (Jan 2012)
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
Net SalesOperating ProfitOperating Margin, %
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
Operating Profit (R12)
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
Q1 2018 – Increased sales and higher result
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)
EXCEL Polymers (Dec 2010)
Müller Kunststoffe (Jan 2012)
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
Net SalesOperating ProfitOperating Margin, %
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
Net SalesOperating ProfitOperating Margin, %
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
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
Operating Profit (R12)
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 -
Q1 2018 – Increased sales and higher result
-
- 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