-
CEO Mikael Fryklund CFO Karin Gunnarsson
July 19, 2017
Welcome to HEXPOL Q2 2017 report update
Telephone presentation July 19, 2017, 12:00 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
July 19, 2017
- 1 -
-
Introduction to HEXPOL
Q2 2017 HEXPOL Group
Q2 2017 Business areas
January June 2017 Key figures
Q2 2017 Summary
Q & A
July 19, 2017
- 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).
July 19, 2017
- 3 -
HEXPOL Fast growing with strong margins
-
HEXPOLs vision is to be market leader,
number one or two, in selected technological
or geographical segments, to generate profit,
growth and shareholder value.
July 19, 2017
- 4 -
Our vision guides us
-
Two business areas HEXPOL Compounding
HEXPOL Engineered Products
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
Global leading position in Gaskets for plate heat exchangers (PHEs)
Global market coverage in Wheels for fork lift trucks and castor wheels
Global presence with production at 43 units in 10 countries (4,400 employees)
97% of sales outside Sweden
Head office in Malm, Sweden
Shares listed on NASDAQ Stockholm, Large Cap
July 19, 2017
- 5 -
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
Acquisition oriented major acquisition within Polymer Compounding: 2010: Elasto, Excel Polymers 2012: Mller 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
Acquired 28 units with sales, development and production since 2010
July 19, 2017
- 6 -
HEXPOL A well positioned Group
-
Two business areas HEXPOL Compounding (93% of sales)
HEXPOL Engineered Products (7% of sales)
July 19, 2017
- 7 -
HEXPOL With a stable organisation
-
01 0002 0003 0004 0005 0006 0007 0008 0009 000
10 00011 00012 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)
Mller Kunststoffe (Jan 2012)
EXCEL Polymers (Dec 2010)
ELASTO (Apr 2010)
Gold Key (Sep 2007)
Trostel (May 2005)
Thona (May 2004)
GFD (Jul 2002)
HEXPOL
July 19, 2017
- 8 -
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) 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
July 19, 2017
- 9 -
HEXPOL A fast growing Group
-
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
- 10 -
July 19, 2017
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/
-
Fragmented market in polymer compounding with few global competitors Examples of polymer compounders:
AirBoss - Teknor Apex Kraiburg - Multibase Dynamix - GLS Preferred Rubber - A.Schulman PTE - Alpha Gary Unica - PolyOne SPC - Washington Penn Mller Kunststoffe (acquired in 2012) Kardoes (acquired in 2014) Portage Precision Polymers (acquired in 2014) Vigar Rubber Compounding (acquired in 2014) Berwin Group (acquired in 2016) Trelleborg Material & Mixing Lesina (acquired in 2017) Valley Processing (acquired in 2017) Customers who own rubber compounding facilities Many local national compounders
- 11 - - 11 -
July 19, 2017
HEXPOL A well positioned Group
-
Main customer segments: Strong automotive industry
Growth to automotive industries but today lower share of total Group sales thanks to strong growth in other segments
Automotive sales around 40% 2016
Engineering and general industry
Building and construction
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
- 12 -
HEXPOL A well positioned Group
July 19, 2017
-
Sales per geographic area Jan-Jun 2017
Europe 32%
NAFTA 64%
Asia 4%
- 13 -
HEXPOL sales distribution
July 19, 2017
Diagram1
2041
4046
281
Sales
Sales per geographic area Jan-Jun 2017
Sheet1
Sales
Europe 32%204132.1%PIIGS1125%
NAFTA 64%404663.5%
Asia 4%2814.4%
6368
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-
3 190 2 6083 798
7 1978 007 8 036
8 919
11 229 10 879
11 863
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 Jul 16-Jun 17
Sales OM
M SEK %
- 14 -
*Adjusted for items affecting comparability
A fast growing Group with strong margin development
July 19, 2017
Chart1
31909.7
260810
379812.1
719712.4
800713.4
803615.6
891916.3
1122917.5
1087917.7
1186316.9
Sales
OM
7 197
8 007
Sheet1
SalesOM
2007273011.2
200831909.7
2009*260810
2010*379812.1
2011719712.4
2012800713.4
2013803615.6
2014891916.3
20151122917.5
20161087917.7
Jul 16-Jun 171186316.9
To resize chart data range, drag lower right corner of range.
-
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jul 16 -Jun 17
Depreciations Investments
MSEK
July 19, 2017
- 15 -
Investments in line with/ or below depreciations
Jul 16 Jun 17: Mainly capacity investments in Mexico and maintenance investments
* tangible fixed assets
Depreciations & investments*
Chart1
68164
90105
8021
8430
140102
143174
141142
139127
193156
196163
206176
Depreciations
Investments
Sheet1
DepreciationsInvestments
200768164
200890105
20098021
20108430
2011140102
2012143174
2013141142
2014139127
2015193156
2016196163
Jul 16 - Jun 17206176
To resize chart data range, drag lower right corner of range.
Invest YTD 2014129Depr YTD 2014150
Q1 2014-29Q1 2014-35
Q1 201541Q1 201553
R12141R12168
-
July 19, 2017
- 16 -
Elasto (April, 2010) TPE Compounding - Units in UK and Sweden
Excel Polymers (Nov, 2010) Rubber Compounding - Units in US, Mexico, UK and China
Mller Kunststoffe (Jan, 2012) TPE Compounding - Units in Germany
Robbins (Nov, 2012) Rubber Compounding - Units in US
Kardoes (Aug, 2014) Rubber Compounding - Unit in US
Vigar Rubber Compounding (Nov, 2014) Rubber Compounding - Units in Spain and Germany
Portage Precision Polymers (Dec, 2014) Rubber/silicon Compounding - Unit in US
RheTech Thermoplastic Compounding (Jan, 2015) Specialized Thermoplastic Compounding - Units in US
Berwin Group (June, 2016) Rubber Compounding - Units in UK
Trelleborg Material & Mixing Lesina (March 2017) Rubber Compounding - Unit in Czech Republic
Valley Processing (April, 2017) Rubber Compounding - Unit in US
Acquisition oriented Major acquisitions within Polymer Compounding
-
July 19, 2017
Trelleborg Material & Mixing Lesina s.r.o. with a manufacturing facility in Lesina, Czech Republic
A well-known Rubber Compounder in Central Europe Had an annual turnover of around 40 MEUR in 2016 Around 125 employees
- 17 -
HEXPOL acquired Trelleborgs Rubber Compounding unit in Czech Republic end of March, 2017
-
July 19, 2017
Valley Processing, with a manufacturing facility in California, US
A well-known US Rubber Compounder Had an annual turnover of around 34 MUSD in 2016 Around 90 employees
- 18 -
HEXPOL acquired Valley Processing April 2017
-
- 19 -
July 19, 2017
- 19 -
2017 2016 2017MSEK Q2 Q2 Q1
Sales 3,230 2,627 3,138
Operating profit, EBIT 517 465 532
Operating margin, % 16.0 17.7 17.0
Profit after tax 366 329 379
Earnings per share, SEK 1.06 0.96 1.10
Operating cash flow 423 580 435
Sales increased 23% Positive volume development Slightly higher raw material prices, but stable compared to Q1 2017 Continued price pressure on all markets
Q2 2017 Increased sales and higher profit
+ 23%
+ 11%
+ 10%
-
Sales (including acquisitions) increased 23% to 3,230 MSEK (2,627) - Positive volume development - Slightly higher raw material prices, but stable compared to Q1 2017 - Price pressure continued strong on all markets - Positive currency effects NAFTA increased sales (including Valley Processing) by 20% - Continued good sales to automotive related customers, slightly lower demand at the end of the quarter - Improved sales to building and construction, engineering and general industry Europe increased sales (including Berwin Group and Trelleborg Material & Mixing Lesina) by 29% - Continued good sales to automotive related customers - Improved sales to building and construction, engineering and general industry Asia increased sales by 20% - Increased sales mainly to automotive related customers in China Operating profit increased 11% to 517 MSEK (465) The acquired Trelleborgs Rubber Compounding unit in Czech Republic, a well-known Rubber
Compounder in Central Europe, has been integrated In early April, Valley Processing, a well known US Rubber Compounder, was acquired
July 19, 2017
- 20 -
Q2 2017 Increased sales and higher profit
-
Net sales increased 23% to 3,230 MSEK (2,627) Operating profit increased 11% to 517 MSEK (465) Operating margin amounted to 16.0% (17.7) Return on capital employed, R12 amounted to 26.3% (27.9)
July 19, 2017
MSE
K
- 21 -
Earnings per share increased 10% to 1.06 SEK
(0.96) Operating cash flow amounted to 423 MSEK
(580) Strong Balance Sheet
Equity/assets ratio 59% (69) Net debt 948 MSEK (net cash 234)
0%
4%
8%
12%
16%
20%
24%
0
500
1000
1500
2000
2500
3000
3500
Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
2012 2013 2014 2015 2016 2017
Net sales Operating margin
Net sales & operating margin
Q2 2017 Increased sales and higher profit
-
- Strong balance sheet, well equipped for further expansion
July 19, 2017
- 22 -
2017 2016 2017MSEK Q2 Q2 Q1
Sales 3,230 2,627 3,138
Operating profit, EBIT 517 465 532
Operating margin, % 16.0 17.7 17.0
Profit after tax 366 329 379
Earnings per share, SEK 1.06 0.96 1.10
Operating cash flow 423 580 435
Net cash -948 234 981
Equity/assets ratio, % 59 69 75
Q2 2017 Increased sales and higher profit
-
- 23 -
MSEK 2017 2016 Growth 2017 2016 Growth
Sales 3 230 2 627 23% 6 368 5 384 18%
Currency -162 -6% -280 -5%
Ex. Currency 3 068 2 627 17% 6 088 5 384 13%
Acquisition -286 -11% -414 -8%Ex. Currency and acquisition 2 782 2 627 6% 5 674 5 384 5%
Quarter 2 Jan - Jun
July 19, 2017
Q2 2017 Increased sales and higher profit
Engineered sales margin
1690.077
1870.086
1800.089
1820.093
1880.074
1900.1
1910.115
1780.096
1910.089
1900.105
1790.106
1770.096
1830.087
1710.094
1630.117
1740.155
1770.153
1740.126
&A
Page &P
Net sales
Operating margin
Compunding margin sales
5810.127
7790.128
7700.135
9500.126
15980.123
15860.133
16520.129
16140.126
19510.131
19310.138
18010.145
15870.134
18310.154
18890.157
18760.163
17490.168
19540.172
19710.171
&A
Page &P
Net sales
Operating margin
HEXPOL margin sales
7500.117
9660.12
9500.126
11320.121
17860.118
17760.13
18430.128
17920.123
21420.127
21210.135
19800.141
17640.13
20140.148
20600.151
20390.159
19230.167
21310.171
21450.168
&A
Page &P
Net sales
Operating Margin
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)Mller 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
507.7123.60000000
545.9329.60000000
9650649000000
1075010983200000
2409008000000
25820001480000
26640005260000
260800000000
3321000028519200
38940000385291800
752300000044143
76872013201320132013201320132013349
HEXPOL
GFD (Jul 2002)
Thona (May 2004)
Trostel (May 2005)
Gold Key (Sep 2007)
ELASTO (Apr 2010)
EXCEL Polymers (Dec 2010)
Mller Kunststoffe (Jan 2012)
Robbins (Nov 2012)
M SEK
Quarter tables
201420132014201420132014
MSEKQ2Q2Q1MSEKQ2Q2Q1
Net Sales2,1452,0602,1314%Net Sales2,1452,0602,131Lnkade4%
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 2Jan - JunJan-Sep
MSEK20172016Growth20172016Growth20152014Growth
Sales3,2302,62723%6,3685,38418%8,6336,58831%
Currency-162-6%-280-5%-1,154-17%
Ex. Currency3,0682,62717%6,0885,38413%
Acquisition-286-11%-414-8%
Ex. Currency and acquisition2,7822,6276%5,6745,3845%7,47914%
HEXPOL Profit + R12
7167
6869
6673
5064
6061
5357
4552
4752
6954
8161
8771
6877
8380
&A
Page &P
Operating Profit
Operating (R12)
HEXPOL Sales + R12
530472
547505
539524
589552
636578
633599
608617
611622
656628
651632
679650
744683
852732
&A
Page &P
Net sales
Net Sales (R12)
Engineering Sales + R12
143134
148137
131139
168148
175156
179163
169173
182176
196182
200187
184191
195194
204196
&A
Page &P
Net sales
Net Sales (R12)
Compunding Profit + R12
4844
4747
4752
3945
4344
3942
3238
2936
4637
4839
5344
4849
5551
&A
Page &P
Operating Profit
Operating Profit (R12)
Engineering Profit + R12
2323
2122
1921
1119
1717
1415
1314
1816
2317
3322
3427
2028
2829
&A
Page &P
Operating Profit
Operating Profit (R12)
Compunding Sales + R12
387338
399368
408385
421404
461422
454436
439444
429446
460446
451445
495459
549489
648536
&A
Page &P
Net sales
Net Sales (R12)
Blad3
hiuhio
iknhikn
knkln
-
July 19, 2017
HEXPOL Compounding Increased sales Positive volume development Slightly higher raw material prices, but stable compared to Q1 2017 Price pressure continued strong on all markets
HEXPOL Engineered Products Increased sales
- 24 -
2017 2016 2017 2017 2016 2017 2017 2016 2017MSEK Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1
HEXPOL Compounding 2 999 2 414 2 910 487 435 505 16.2 18.0 17.4
HEXPOL Engineered Products 231 213 228 30 30 27 13.0 14.1 11.8
Operating Margin, %Operating ProfitNet Sales
Q2 2017 Business areas Increased sales and higher profit
Engineered sales margin
1690.077
1870.086
1800.089
1820.093
1880.074
1900.1
1910.115
1780.096
1910.089
1900.105
1790.106
1770.096
1830.087
1710.094
1630.117
1740.155
1770.153
1740.126
&A
Page &P
Net sales
Operating margin
Compunding margin sales
5810.127
7790.128
7700.135
9500.126
15980.123
15860.133
16520.129
16140.126
19510.131
19310.138
18010.145
15870.134
18310.154
18890.157
18760.163
17490.168
19540.172
19710.171
&A
Page &P
Net sales
Operating margin
HEXPOL margin sales
7500.117
9660.12
9500.126
11320.121
17860.118
17760.13
18430.128
17920.123
21420.127
21210.135
19800.141
17640.13
20140.148
20600.151
20390.159
19230.167
21310.171
21450.168
&A
Page &P
Net sales
Operating Margin
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)Mller 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
507.7123.60000000
545.9329.60000000
9650649000000
1075010983200000
2409008000000
25820001480000
26640005260000
260800000000
3321000028519200
38940000385291800
752300000044143
76872013201320132013201320132013349
HEXPOL
GFD (Jul 2002)
Thona (May 2004)
Trostel (May 2005)
Gold Key (Sep 2007)
ELASTO (Apr 2010)
EXCEL Polymers (Dec 2010)
Mller Kunststoffe (Jan 2012)
Robbins (Nov 2012)
M SEK
Quarter tables
201420132014201420132014
MSEKQ2Q2Q1MSEKQ2Q2Q1
Net Sales2,1452,0602,1314%Net Sales2,1452,0602,131Lnkade4%
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, %
201720162017201720162017201720162017
MSEKQ2Q2Q1Q2Q2Q1Q2Q2Q1
HEXPOL Compounding2,9992,4142,91048743550516.218.017.4
HEXPOL Engineered Products23121322830302713.014.111.8
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
7167
6869
6673
5064
6061
5357
4552
4752
6954
8161
8771
6877
8380
&A
Page &P
Operating Profit
Operating (R12)
HEXPOL Sales + R12
530472
547505
539524
589552
636578
633599
608617
611622
656628
651632
679650
744683
852732
&A
Page &P
Net sales
Net Sales (R12)
Engineering Sales + R12
143134
148137
131139
168148
175156
179163
169173
182176
196182
200187
184191
195194
204196
&A
Page &P
Net sales
Net Sales (R12)
Compunding Profit + R12
4844
4747
4752
3945
4344
3942
3238
2936
4637
4839
5344
4849
5551
&A
Page &P
Operating Profit
Operating Profit (R12)
Engineering Profit + R12
2323
2122
1921
1119
1717
1415
1314
1816
2317
3322
3427
2028
2829
&A
Page &P
Operating Profit
Operating Profit (R12)
Compunding Sales + R12
387338
399368
408385
421404
461422
454436
439444
429446
460446
451445
495459
549489
648536
&A
Page &P
Net sales
Net Sales (R12)
Blad3
hiuhio
iknhikn
knkln
-
0%
4%
8%
12%
16%
20%
24%
0
500
1000
1500
2000
2500
3000
3500
Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
2012 2013 2014 2015 2016 2017
Net sales Operating margin
Sales increased 24% to 2,999 MSEK (2,414) Positive volume development Price pressure continued strong on all markets
Operating profit increased 12% to 487 MSEK (435)
Operating margins amounted to 16.2% (18.0), affected by price pressure and lower margin in acquired units
July 19, 2017
Net sales & operating margin
MSE
K
- 25 -
Q2 2017 HEXPOL Compounding Increased sales and higher profit
-
HEXPOL Compounding NAFTA increased sales Continued good sales to automotive related customers, slightly lower
demand at the end of the quarter Improved sales to building and construction, engineering and general
industry HEXPOL Compounding Europe increased sales
Continued good sales to automotive related customers Improved sales to building and construction, engineering and general
industry HEXPOL Compounding Asia developed positively
Increased sales mainly to automotive related customers in China HEXPOL TPE Compounding increased sales Acquired RheTech Thermoplastic Compounding had a continued positive development Continued price pressure on all markets The acquired Trelleborgs Rubber Compounding unit in Czech
Republic, a well-known Rubber Compounder in Central Europe, has been integrated
In early April, Valley Processing, a well-known Rubber Compounder in western US, was acquired
July 19, 2017
- 26 -
Q2 2017 HEXPOL Compounding Increased sales and higher profit
-
Net sales increased 8% to 231 MSEK (213) Sales increased for HEXPOL Wheels while HEXPOL Gaskets was in line with last year Positive development in China for HEXPOL Wheels and HEXPOL Gaskets
Operating profit amounted to 30 MSEK (30) Operating margin amounted to 13.0% (14.1)
July 19, 2017
Net sales & operating margin
MSE
K
0%2%4%6%8%10%12%14%16%18%
0
50
100
150
200
250
Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
2012 2013 2014 2015 2016 2017
Net sales Operating margin
- 27 -
Q2 2017 HEXPOL Engineered Products Increased sales
-
- 28 -
July 19, 2017
Sales increased 18% Operating profit increased 9% Earnings per share increased 9% Strong balance sheet
Jan Jun 2017 Increased sales and higher profit
Strong balance sheet provides scope for continued expansion. The dividend of 1,635 MSEK resolved at the Annual General Meeting was paid in May corresponding to a dividend of 4.75 SEK per share, consisting of an ordinary dividend of 1.75 SEK per share and a special dividend of 3.00 SEK per share.
Full yearMSEK 2017 2016 2017 2016 2016
Net Sales 3,230 2,627 6 368 5 384 10 879 11 863
Operating Profit, EBIT 517 465 1 049 962 1 921 2 008
Operating Margin, % 16.0 17.7 16.5 17.9 17.7 16.9
Profit after tax 366 329 745 684 1 397 1 458
Earnings per share, SEK 1.06 0.96 2.16 1.99 4.06 4.23
Operating cash flow 423 580 858 905 2 057 2 010
Net cash -948 234 1 268
Equity/assets ratio, % 59 69 77
Return on capital employed, % R12 26.3 27.9 26.8
Apr -Jun Jul 16- Jun 17
Jan-Jun +18%
+9%
+9%
-
Sales increased by 23% to 3,230 MSEK (2,627). Positive volume development Operating profit increased by 11% to 517 MSEK (465) Earnings per share rose by 10% to 1.06 SEK (0.96) Continued price pressure The acquired, Trelleborgs Rubber Compounding unit in Czech Republic, a well-known Rubber Compounder in Central Europe, has been integrated In early April, Valley Processing, a well known US Rubber Compounder, was acquired Mikael Fryklund appointed president and CEO, started July 1 Georg Brunstam was elected to Chairman of the Board for HEXPOL AB (publ.) at the Annual General Meeting April 28, 2017
July 19, 2017
- 29 -
Q2 2017 Increased sales and higher profit
-
- 30 -
Q & A
July 19, 2017
CEO Mikael FryklundCFO Karin GunnarssonJuly 19, 2017Slide Number 2HEXPOL Fast growing with strong marginsOur vision guides usSlide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20 Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30