Welcome to HEXPOL Q report update

Transcription

1 Please call (international call), (national call, Sweden) (mobile call, Sweden) and enter meeting code Welcome to HEXPOL Q report update CEO Georg Brunstam CFO Urban Ottosson 7 May 2010, 13:00 Telephone Conference - 1 -

2 Agenda Introduction to HEXPOL Q HEXPOL Group Q Business areas Summary Q Q & A - 2 -

3 An introduction to HEXPOL 2 business areas; HEXPOL AB (publ) HEXPOL Compounding HEXPOL Engineered Products Strong global market positions Advanced polymer compounds Gaskets for plate heat exchangers (PHEs) Wheels for fork lift trucks and castor wheels Global presence with production in nine countries ( employees) True global footprint 7 of 16 production units in emerging markets Historical sales growth and good profitability Well invested and strong cash-flow Long industrial history with highly experienced and dedicated management and board Acquisition oriented Europe Asia HEXPOL Compounding HEXPOL Engineered Products NAFTA ELASTO Wheels Gaskets Profiles Technology - 3 -

4 Q Summary - Good growth and continued strong margins MSEK 2010 Q Q1 change 2009 Q4 change Net sales % % Operating profit 87 46* +89% 80 +9% Operating margin, % * 11.4 Earnings after tax 58 26* +123% 57* Earnings per share, SEK * +123% 2.15* +2% +1% Operating cash flow * Excluding items affecting comparability - 4 -

5 Q Highlights - Good growth and continued strong margins Good growth and more than doubled earnings vs last year Substantial volume increase to automotive sector in quarter Continued strong growth and strong margins for HEXPOL Compounding Continued improvements for HEXPOL Engineered Products Demand stabilized Significantly lower cost base Net debt further reduced Acquisition of VTC TPE Group (ELASTO Group) - 5 -

6 ELASTO Acquisition of polymer compounding group within TPE (Thermo Plastic Elastomers) 1 April

7 ELASTO at a glance.. Business: ELASTO develop & manufacture thermoplastic elastomer (TPE) compounds. TPEs are rubber like materials with the processing benefits and recyclability of plastic. Markets: Medical, household, automotive, construction, sports, glazing, packaging, general industrial Sites: Two production sites; Åmal, Sweden & Manchester, UK. French sales office No. of employees: 85 Production: 13,000 tonnes p.a. Turnover: Est 33 MEUR - 7 -

8 ELASTO The acquisition constitutes yet another step in our ambition to broaden our product range within our Compounding business area. The market for TPE compounding is undergoing great growth with interesting and increasing customer applications within the field of medical, industry and automotive. ELASTO Group has an estimated annual turnover of approximately 33 MEUR with an EBITDA margin in line with HEXPOL s. ELASTO has around 85 employees. The group is a leading developer and manufacturer of thermoplastic elastomer compounds (TPE Compounding) and has production units in Great Britain and Sweden. VTC TPE Group will be consolidated as of 1 April 2010 and will be a part of business area HEXPOL Compounding. The acquisition price adjusted for acquired net debt amounts to 35 MEUR in cash

9 + = What is TPE? FEEL & PERFORMANCE OF RUBBER + PROCESSABILITY OF PLASTIC = THERMOPLASTIC ELASTOMER (TPE) - 9 -

10 Applications The applications for TPEs are virtually unlimited, with new ideas being introduced everyday. Our TPEs are used to manufacture everything from soft-touch grips to automotive seals to medical tubing

11 Locations of ELASTO ELASTO AB Åmål, Sweden ELASTO UK Manchester, Great Britain

12 Q Financials - Good growth and continued strong margins Substantially higher volumes vs last year Net sales increased by 16 percent to 750 MSEK (647) Currency adjusted + 30% MSEK Net sales & operating margin Operating profit amounted to 87 MSEK (46*) Operating profit increased by 89 percent Strong operating margin 11.7 % (7.1*) Financial cost substantially lowered Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Q2 Q3 Q4 Q % 12% 10% 8% 6% 4% 2% 0% Continued reductions of net debt Net sales Operating margin * Excluding items affecting comparability Earnings per share more than doubled to 2.18 SEK (0,98*) * Excluding items affecting comparability

13 Q Sales Growth Quarter 1 Jan-Mar MSEK Growth Sales % Currency 91 Ex. currency %

14 Q Summary - Good growth and continued strong margins MSEK Q Q change Q change Net sales % % Operating profit, EBIT 87 46* +89% 80 +9% Operating margin, % * 11.4 Earnings before tax 82 37* +122% 80 +3% Earnings after tax 58 26* +123% 57* +2% Earnings per share, SEK * +123% 2.15* +1% Operating cash flow Net debt % 760-5% Equity/assets ratio, % Return on capital employed, % * 10.3* * Excluding items affecting comparability

15 Investments & depreciations Jan - Mar MSEK Investments 2 11 Depreciations

16 Q Business areas Net Sales Operating Profit Operating Margin, % MSEK Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 HEXPOL Compounding * 69* * 12.5* HEXPOL Engineered Products * 11* * 7.3* * Excluding items affecting comparability Continued strong margins and result in HEXPOL Compounding Continued improvements in HEXPOL Engineered Products

17 Q HEXPOL Compounding - Substantial growth and continued strong margins Increased volumes vs last year Net sales increased by 21 percent vs last year, to 581 MSEK (481) Currency adjusted growth +37 percent NAFTA Substantially increased volumes to automotive sector Growth also in sectors outside automotive Europe Substantially increased volumes to automotive industry Eastern Europe stronger Asia Continued good growth MSEK Net sales & operating margin Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Q2 Q3 Q4* Q Net sales Operating margin * Excluding items affecting comparability 16% 14% 12% 10% 8% 6% 4% 2% 0%

18 Q HEXPOL Engineered Products - Continued improvements Stabilized sales in Q1 Net sales increased 2% to 169 MSEK (166) Currency adjusted +10% Stabilized demand Operating profit vastly improved to 13 MSEK (7*) Continued improvement Action programme improved Wheels Stabilized volumes Still low capacity utilization Substantially lower cost base MSEK Net sales & operating margin Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Q2 Q3 Q4* Q Net sales Operating margin * Excluding items affecting comparability 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% * Excluding items affecting comparability

19 Summary Q Very strong quarter Substantial sales and volume improvement vs last year Strong automotive sales Overall good sales growth Earning per share more than doubled to 2,18 SEK (0,98*) Net debt further reduced Acquisition of VTP TPE Gruop (ELASTO Group) within core business area HEXPOL Compounding * Excluding items affecting comparability

20 Q & A