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Transcript of Welcome to HEXPOLinvestors.hexpol.com/sites/default/files/report/hexpol_q2_2018.pdf · Telephone...
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Welcome to HEXPOL Q2, 2018 Report update
July 18, 2018 CEO Mikael Fryklund CFO Karin Gunnarsson
Telephone presentation on July 18, 2018, 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 18, 2018
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Introduction to HEXPOL
Q2 2018 HEXPOL Group
Q2 2018 Business areas
January June Key figures
Q2 2018 Summary
Q & A
July 18, 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).
July 18, 2018
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HEXPOL Fast growing with strong margins
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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 18, 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 Malm, 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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July 18, 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: 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
July 18, 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)
Mller Kunststoffe (Jan 2012)
EXCEL Polymers (Dec 2010)
ELASTO (Apr 2010)
Gold Key (Sep 2007)
HEXPOL
July 18, 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
July 18, 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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July 18, 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/ -
HEXPOL Sales per geographic area Jul 17- Jun 18
Europe 34%
NAFTA 60%
Asia 6%
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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
July 18, 2018
Diagram1Europe 34%NAFTA 60%Asia 6%SalesHEXPOL Sales per geographic area Jul 17- Jun 1843447593695Sheet1SalesEurope 34%434434.4%PIIGS1123%NAFTA 60%759360.1%Asia 6%6955.5%12632To 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
HEXPOL A fast growing Group
July 18, 2018
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3 190 2 6083 798
7 1978 007 8 036
8 919
11 229 10 87912 230 12 632
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 Jul 17-Jun 18
Sales OM
M SEK %
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*Adjusted for items affecting comparability
HEXPOL A fast growing Group with strong margins
July 18, 2018
Chart1200820082009*2009*2010*2010*20112011201220122013201320142014201520152016201620172017Jul 17- Jun 18Jul 17- Jun 18SalesOM7 1978 00731909.7260810379812.1719712.4800713.4803615.6891916.31122917.51087917.71223016.21263216.1Sheet1SalesOM2007273011.2200831909.72009*2608102010*379812.12011719712.42012800713.42013803615.62014891916.320151122917.520161087917.720171223016.2Jul 17- Jun 181263216.1To 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 2017 Jul 17-Jun 18
Depreciations Investments
MSEK
July 18, 2018
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Investments in line with/ or below depreciations Jul 17 - Jun 18: Mainly capacity investments in HEXPOL TPE Compounding and also regular
maintenance investments * tangible fixed assets
HEXPOL Depreciations & investments*
Chart12007200720082008200920092010201020112011201220122013201320142014201520152016201620172017Jul 17- Jun 18Jul 17- Jun 18DepreciationsInvestments681649010580218430140102143174141142139127193156196163218189226210Sheet1DepreciationsInvestments20076816420089010520098021201084302011140102201214317420131411422014139127201519315620161961632017218189Jul 17- Jun 18226210To resize chart data range, drag lower right corner of range.Invest YTD 2014129Depr YTD 2014150Q1 2014-29Q1 2014-35Q1 201541Q1 201553R12141R12168 -
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July 18, 2018
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2018 2017 2018MSEK Q2 Q2 Q1
Sales 3,461 3,230 3,309
Operating profit, EBIT 561 517 540
Operating margin, % 16.2 16.0 16.3
Profit after tax 426 366 411
Earnings per share, SEK 1.24 1.06 1.19
Sales increased 7% Positive volume development Highest quarterly sales and operating profit so far Improved operating margin
Q2 2018 Increased sales and higher result
+7%
+17%
+9%
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Sales increased 7% to 3,461 MSEK (3,230) Positive volume development Sales positively affected by higher sales prices due to increased raw material prices Positive currency effects of 36 MSEK In NAFTA increased sales by 4% Continued stable sales to automotive related customers and to customers within building and construction Improved sales to customers within engineering and general industry Improved sales to customers within oil and gas and mining however from low levels In Europe increased sales by 10% Stable sales to automotive related customers and to customers within building and construction Improved sales to customers within engineering and general industry Improved sales to PHE and forklifts manufacturers In Asia significantly increased sales by 32% Sales increased to automotive related customers in China Operating profit increased 9% to 561 MSEK (517) Positive currency effects of 2 MSEK Operating margin increased to 16.2% (16.0)
July 18, 2018
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Q2 2018 Increased sales and higher result
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MSEK 2018 2017 Growth 2018 2017 Growth
Sales 3 461 3 230 7% 6 770 6 368 6%
Currency -36 -1% 117 2%
Ex. Currency 3 425 3 230 6% 6 887 6 368 8%
Acquisition 0 0% -210 -3%Ex. Currency and acquisition 3 425 3 230 6% 6 677 6 368 5%
Quarter 2 Jan - Jun
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July 18, 2018
Q2 2018 Increased sales and higher result
Engineered sales marginQ12010Q12009Q2Q2Q3Q3Q4Q4Q12011Q12010Q2Q2Q3Q3Q4Q4Q12012Q12011Q2Q2Q3Q3Q4Q4Q12013Q12012Q2Q2Q3Q3Q4Q4Q12014Q12013Q2Q2&APage &PNet salesOperating margin1690.0771870.0861800.0891820.0931880.0741900.11910.1151780.0961910.0891900.1051790.1061770.0961830.0871710.0941630.1171740.1551770.1531740.126Compunding margin salesQ12010Q12009Q2Q2Q3Q3Q4Q4Q12011Q12010Q2Q2Q3Q3Q4Q4Q12012Q12011Q2Q2Q3Q3Q4Q4Q12013Q12012Q2Q2Q3Q3Q4Q4Q12014Q12013Q2Q2&APage &PNet salesOperating margin5810.1277790.1287700.1359500.12615980.12315860.13316520.12916140.12619510.13119310.13818010.14515870.13418310.15418890.15718760.16317490.16819540.17219710.171HEXPOL margin salesQ12010Q12009Q2Q2Q3Q3Q4Q4Q12011Q12010Q2Q2Q3Q3Q4Q4Q12012Q12011Q2Q2Q3Q3Q4Q4Q12013Q12012Q2Q2Q3Q3Q4Q4Q12014Q12013Q2Q2&APage &PNet salesOperating Margin7500.1179660.129500.12611320.12117860.11817760.1318430.12817920.12321420.12721210.13519800.14117640.1320140.14820600.15120390.15919230.16721310.17121450.168DataCompoundingEngineered ProductsHEXPOLNet salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating Margin2005Q138733812.40%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%Q3Q3Q3Q4Q4Q4Operating ProfitOperating Profit (R12)Operating ProfitOperating Profit (R12)Operating ProfitOperating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ata SalesHEXPOL Group - Acquisition impacts on SalesYearHEXPOLGFDThonaStellana USGold KeyELASTOEXCEL Pol.HKM (Jan 2012)HEXPOL19983810000000381199941200000004122000464000000046420014840000000484200250812400000063120035463300000008762004614351649000001,61420056783971,0983200002,205HEXPOL809,21420067604111,2388000002,489GFD443,47320078803761,265611480002,730Thona1,817,17720088684051,326655260003,190Stellana US79,50320096222271,083696070002,608GoldKey744,01220107542851,4887771728519203,798Elasto385,17720118104431,817807443852,9187,196Excel2,918,033Oct 2011- Sep 20127,196,589Pro formaHEXPOLGFD (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)HEXPOL2002508124000000063120035463300000000876200496506490000001,61420051,07501,09832000002,20520062,4090080000002,48920072,58200014800002,73020082,66400052600003,19020092,608000000002,60820103,3210000285192003,79820113,89400003852,918007,19720127,523000000441438,00720137,68700000003498,036Chart Sales200220022002200220022002200220022002200320032003200320032003200320032003200420042004200420042004200420042004200520052005200520052005200520052005200620062006200620062006200620062006200720072007200720072007200720072007200820082008200820082008200820082008200920092009200920092009200920092009201020102010201020102010201020102010201120112011201120112011201120112011201220122012201220122012201220122012201320132013201320132013201320132013HEXPOLGFD (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 SEK507.7123.60000000545.9329.6000000096506490000001075010983200000240900800000025820001480000266400052600002608000000003321000028519200389400003852918007523000000441437687349Quarter tables201420132014201420132014MSEKQ2Q2Q1MSEKQ2Q2Q1Net Sales2,1452,0602,1314%Net Sales2,1452,0602,131Lnkade4%Operating Profit, EBIT36031236415%Operating Profit, EBIT36031236415%Operating Margin, %16.815.117.1Operating Margin, %16.815.117.1Profit after tax25822826213%Profit after tax25822826213%Earnings per share, SEK7.506.627.6113%Earnings per share, SEK7.506.627.61Operating cash flow4123852877%Operating cash flow4123852877%Net debt1331,013312-87%Net debt/equity, multiple0.00.30.1Equity/assets ratio, %61.349.661.5Net SalesOperating ProfitOperating Margin, %201420132014201420132014201420132014MSEKQ2Q2Q1Q2Q2Q1Q2Q2Q1HEXPOL Compounding1,9711,8891,95433829633717.115.717.2HEXPOL Engineered Products17417117722162712.69.415.3YTD TablesApr-JunJan - JunFull-yearJan 2013-Full-yearJul 2013- Jun 2014MSEK20142013201420132013Dec 20132013Net Sales2,1452,0604,2764,0748,0078,2098,0368,2385%Operating Profit, EBIT3603127246101,0691,1831,2551,36919%Operating Margin, %16.815.116.915.013.414.815.616.6Profit 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, %62.750.849.261.5Return on capital employed, %30.825.324.025.127.029.1Ej med i Q2 2013Net SalesOperating ProfitOperating Margin, %MSEK201320122013201220132012HEXPOL Compounding7,3457,2701,17799616.013.7HEXPOL Engineered Products691737787311.39.9Jan - MarMSEK20142013Investments2921Depreciations/Amortizations3538Sales GrowthQuarter 2Jan - JunJan-SepMSEK20182017Growth20182017Growth20152014GrowthSales3,4613,2307%6,7706,3686%8,6336,58831%Currency-36-1%1172%-1,154-17%Ex. Currency3,4253,2306%6,8876,3688%Acquisition00%-210-3%Ex. Currency and acquisition3,4253,2306%6,6776,3685%7,47914%HEXPOL Profit + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &POperating ProfitOperating (R12)7167686966735064606153574552475269548161877168778380HEXPOL Sales + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &PNet salesNet Sales (R12)530472547505539524589552636578633599608617611622656628651632679650744683852732Engineering Sales + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &PNet salesNet Sales (R12)143134148137131139168148175156179163169173182176196182200187184191195194204196Compunding Profit + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &POperating ProfitOperating Profit (R12)4844474747523945434439423238293646374839534448495551Engineering Profit + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &POperating ProfitOperating Profit (R12)2323212219211119171714151314181623173322342720282829Compunding Sales + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &PNet salesNet Sales (R12)387338399368408385421404461422454436439444429446460446451445495459549489648536Blad3hiuhioiknhiknknkln -
- Strong balance sheet, well equipped for further expansion
July 18, 2018
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2018 2017 2018MSEK Q2 Q2 Q1
Sales 3,461 3,230 3,309
Operating profit, EBIT 561 517 540
Operating margin, % 16.2 16.0 16.3
Profit after tax 426 366 411
Earnings per share, SEK 1.24 1.06 1.19
Operating cash flow 522 423 302
Net cash 56 -948 267
Equity/assets ratio, % 67 59 68
Return on capital employed, % R12 24.6 26.3 24.7
Q2 2018 Increased sales and higher result
Strong balance sheet and net cash of 56 MSEK provides scope for continued expansion.
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July 18, 2018
HEXPOL Compounding Increased sales Increased operating profit and operating margin Positive volume development
HEXPOL Engineered Products Increased sales Increased operating profit and operating margin
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2018 2017 2018 2018 2017 2018 2018 2017 2018MSEK Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1
HEXPOL Compounding 3 207 2 999 3 057 526 487 506 16.4 16.2 16.6
HEXPOL Engineered Products 254 231 252 35 30 34 13.8 13.0 13.5
Operating Margin, %Operating ProfitNet Sales
Q2 2018 Business areas Increased sales and higher result
Engineered sales marginQ12010Q12009Q2Q2Q3Q3Q4Q4Q12011Q12010Q2Q2Q3Q3Q4Q4Q12012Q12011Q2Q2Q3Q3Q4Q4Q12013Q12012Q2Q2Q3Q3Q4Q4Q12014Q12013Q2Q2&APage &PNet salesOperating margin1690.0771870.0861800.0891820.0931880.0741900.11910.1151780.0961910.0891900.1051790.1061770.0961830.0871710.0941630.1171740.1551770.1531740.126Compunding margin salesQ12010Q12009Q2Q2Q3Q3Q4Q4Q12011Q12010Q2Q2Q3Q3Q4Q4Q12012Q12011Q2Q2Q3Q3Q4Q4Q12013Q12012Q2Q2Q3Q3Q4Q4Q12014Q12013Q2Q2&APage &PNet salesOperating margin5810.1277790.1287700.1359500.12615980.12315860.13316520.12916140.12619510.13119310.13818010.14515870.13418310.15418890.15718760.16317490.16819540.17219710.171HEXPOL margin salesQ12010Q12009Q2Q2Q3Q3Q4Q4Q12011Q12010Q2Q2Q3Q3Q4Q4Q12012Q12011Q2Q2Q3Q3Q4Q4Q12013Q12012Q2Q2Q3Q3Q4Q4Q12014Q12013Q2Q2&APage &PNet salesOperating Margin7500.1179660.129500.12611320.12117860.11817760.1318430.12817920.12321420.12721210.13519800.14117640.1320140.14820600.15120390.15919230.16721310.17121450.168DataCompoundingEngineered ProductsHEXPOLNet salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating marginNet salesNet Sales (R12)Operating Margin2005Q138733812.40%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%Q3Q3Q3Q4Q4Q4Operating ProfitOperating Profit (R12)Operating ProfitOperating Profit (R12)Operating ProfitOperating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ata SalesHEXPOL Group - Acquisition impacts on SalesYearHEXPOLGFDThonaStellana USGold KeyELASTOEXCEL Pol.HKM (Jan 2012)HEXPOL19983810000000381199941200000004122000464000000046420014840000000484200250812400000063120035463300000008762004614351649000001,61420056783971,0983200002,205HEXPOL809,21420067604111,2388000002,489GFD443,47320078803761,265611480002,730Thona1,817,17720088684051,326655260003,190Stellana US79,50320096222271,083696070002,608GoldKey744,01220107542851,4887771728519203,798Elasto385,17720118104431,817807443852,9187,196Excel2,918,033Oct 2011- Sep 20127,196,589Pro formaHEXPOLGFD (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)HEXPOL2002508124000000063120035463300000000876200496506490000001,61420051,07501,09832000002,20520062,4090080000002,48920072,58200014800002,73020082,66400052600003,19020092,608000000002,60820103,3210000285192003,79820113,89400003852,918007,19720127,523000000441438,00720137,68700000003498,036Chart Sales200220022002200220022002200220022002200320032003200320032003200320032003200420042004200420042004200420042004200520052005200520052005200520052005200620062006200620062006200620062006200720072007200720072007200720072007200820082008200820082008200820082008200920092009200920092009200920092009201020102010201020102010201020102010201120112011201120112011201120112011201220122012201220122012201220122012201320132013201320132013201320132013HEXPOLGFD (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 SEK507.7123.60000000545.9329.6000000096506490000001075010983200000240900800000025820001480000266400052600002608000000003321000028519200389400003852918007523000000441437687349Quarter tables201420132014201420132014MSEKQ2Q2Q1MSEKQ2Q2Q1Net Sales2,1452,0602,1314%Net Sales2,1452,0602,131Lnkade4%Operating Profit, EBIT36031236415%Operating Profit, EBIT36031236415%Operating Margin, %16.815.117.1Operating Margin, %16.815.117.1Profit after tax25822826213%Profit after tax25822826213%Earnings per share, SEK7.506.627.6113%Earnings per share, SEK7.506.627.61Operating cash flow4123852877%Operating cash flow4123852877%Net debt175985312-82%Net debt/equity, multiple0.00.30.1Equity/assets ratio, %62.750.861.5Net SalesOperating ProfitOperating Margin, %201820172018201820172018201820172018MSEKQ2Q2Q1Q2Q2Q1Q2Q2Q1HEXPOL Compounding3,2072,9993,05752648750616.416.216.6HEXPOL Engineered Products25423125235303413.813.013.5YTD TablesApr-JunJan - JunFull-yearJan 2013-Full-yearJul 2013- Jun 2014MSEK20142013201420132013Dec 20132013Net Sales2,1452,0604,2764,0748,0078,2098,0368,2385%Operating Profit, EBIT3603127246101,0691,1831,2551,36919%Operating Margin, %16.815.116.915.013.414.815.616.6Profit 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, %62.750.849.261.5Return on capital employed, %30.725.324.025.127.029.1Ej med i Q2 2013Net SalesOperating ProfitOperating Margin, %MSEK201320122013201220132012HEXPOL Compounding7,3457,2701,17799616.013.7HEXPOL Engineered Products691737787311.39.9Jan - MarMSEK20142013Investments2921Depreciations/Amortizations3538Sales GrowthQuarter 2MSEK20142013GrowthSales2,1452,0604%Currency-25-1%Ex. Currency2,1202,0603%HEXPOL Profit + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &POperating ProfitOperating (R12)7167686966735064606153574552475269548161877168778380HEXPOL Sales + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &PNet salesNet Sales (R12)530472547505539524589552636578633599608617611622656628651632679650744683852732Engineering Sales + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &PNet salesNet Sales (R12)143134148137131139168148175156179163169173182176196182200187184191195194204196Compunding Profit + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &POperating ProfitOperating Profit (R12)4844474747523945434439423238293646374839534448495551Engineering Profit + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &POperating ProfitOperating Profit (R12)2323212219211119171714151314181623173322342720282829Compunding Sales + R12Q12005Q12005Q2Q2Q3Q3Q4Q4Q12006Q12006Q2Q2Q3Q3Q4Q4Q12007Q12007Q2Q2Q3Q3Q4Q4Q12008Q12008&APage &PNet salesNet Sales (R12)387338399368408385421404461422454436439444429446460446451445495459549489648536Blad3hiuhioiknhiknknkln -
0%
4%
8%
12%
16%
20%
24%
0
500
1000
1500
2000
2500
3000
3500
Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
2013 2014 2015 2016 2017 2018
Net sales Operating margin
Sales increased 7% to 3,207 MSEK (2,999) Sales positively affected by higher sales prices due to increased raw material prices Positive volume development
Operating profit increased 8% to 526 MSEK (487)
Operating margin improved to 16.4% (16.2)
July 18, 2018
Net sales & operating margin
MSE
K
- 19 -
Q2 2018 HEXPOL Compounding Increased sales and higher result
-
HEXPOL Compounding NAFTA increased sales Continued stable sales to automotive related customers and building
and construction Improved sales to engineering and general industry Improved sales to oil and gas and mining however from low levels
HEXPOL Compounding Europe increased sales Stable sales to automotive related customers and to customers within
building and construction Improved sales to customers within engineering and general industry
HEXPOL Compounding Asia significantly increased sales
Increased sales to automotive related customers in China
HEXPOL TPE Compounding significantly higher sales
HEXPOL TP Compounding significantly increased sales Increased sales mainly to automotive related customers
July 18, 2018
- 20 -
Q2 2018 HEXPOL Compounding Increased sales and higher result
-
Net sales increased 10% to 254 MSEK (231) Increased sales in both HEXPOL Wheels and HEXPOL Gaskets
Operating profit increased 17% to 35 MSEK (30) Operating margin improved to 13.8% (13.0)
July 18, 2018
Net sales & operating margin
MSE
K
0%2%4%6%8%10%12%14%16%18%
0
50
100
150
200
250
300
Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2
2013 2014 2015 2016 2017 2018
Net sales Operating margin
- 21 -
Q2 2018 HEXPOL Engineered Products Increased sales and higher result
-
Sales increased by 6% Operating profit increased by 5% Earnings per share increased to 2.43 SEK (2.16) Strong balance sheet
July 18, 2018
- 22 -
Jan Jun 2018 Increased sales and higher result
Strong balance sheet provides scope for continued expansion. The dividend of 671 MSEK resolved at the Annual General Meeting was paid in May corresponding to a dividend of 1.95 SEK per share.
Full Year Jul 17-MSEK 2018 2017 2018 2017 2017 Jun 18Sales 3 461 3 230 6 770 6 368 12 230 12 632Operating profit, EBIT 561 517 1 101 1 049 1 986 2 038
Operating margin, % 16,2 16,0 16,3 16,5 16,2 16,1
Profit after tax 426 366 837 745 1 527 1 619
Earnings per share, SEK 1,24 1,06 2,43 2,16 4,44 4,71
Equity/assets ratio, % 67 59 68
Net cash 56 -948 -27
Return on capital employed, % R12 24,6 26,3 25,1
Operating cash f low 522 423 824 858 2 001 1 967
Apr -Jun Jan-Jun
+13%
+5%
+6%
-
Sales increased by 7% to 3,461 MSEK (3,230)
Positive volume development
Operating profit increased by 9% to 561 MSEK (517)
Operating margin improved to 16.2% (16.0)
Operating cash flow improved to 522 MSEK (423)
Earnings per share increased to 1.24 SEK (1.06)
Strong balance sheet, net cash of 56 MSEK
July 18, 2018
- 23 -
Q2 2018 Increased sales and higher result
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- 24 -
Q & A
July 18, 2018
-
Thank You!
July 18, 2018
- 25 - - 25 -
Welcome toHEXPOLQ2, 2018 Report updateSlide Number 2HEXPOL Fast growing with strong marginsHEXPOL - Our vision guides usHEXPOL A well positioned GroupHEXPOL A well positioned GroupHEXPOL A fast growing GroupHEXPOL A fast growing GroupHEXPOL A fast growing GroupHEXPOL Organisation and sales distributionHEXPOL A fast growing GroupHEXPOL A fast growing Group with strong marginsSlide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Jan Jun 2018 Increased sales and higher resultSlide Number 23Slide Number 24Slide Number 25