Year-end report 2012

Fourth quarter of 2012 – Strong earnings with continued margin improvement

  · Sales amounted to 1,764 MSEK (1,792).
  · Operating profit increased to 230 MSEK (220). Excluding integration and
transaction costs, operating profit rose 14 per cent to 250 MSEK (220).
  · Integration and transaction costs for the acquisition of Robbins amounted to
20 MSEK.
  · The operating margin improved to 13.0 per cent (12.3). Excluding integration
and transaction costs, the operating margin improved to 14.2 per cent.
  · Profit after tax rose to 186 MSEK (157).
  · Earnings per share rose strongly to 5.41 SEK (4.55).
  · Operating cash flow was strong and amounted to 323 MSEK (363).
  · Acquisition of Robbins, a leading US manufacturer of rubber compounds.

Full-year 2012 – Growth with strong and improved margins – Best year so far

  · Sales rose 11 per cent to 8,007 MSEK (7,197).
  · Operating profit increased strongly by 19 per cent to 1,069 MSEK (895).
  · The operating margin improved to 13.4 per cent (12.4).
  · Profit after tax increased to 753 MSEK (619).
  · Earnings per share increased to 21.88 SEK (18.65). The year-on-year increase
was 22 per cent (17.98), based on the actual number of shares after the rights
issue in March 2011.
  · Operating cash flow was strong and rose to 1,209 MSEK (911).
  · The Board of Directors proposes a dividend of 6.00 SEK per share (5.00).

President’s comments

“The fourth quarter of 2012 was once again a strong quarter for the HEXPOL
Group. Our earnings per share rose significantly to 5.41 SEK (4.55), up 19 per
cent. The operating margin improved further to 13.0 per cent (12.3) and our
operating profit amounted to 230 MSEK (220). Excluding integration and
transaction costs, operating profit was 250 MSEK and the operating margin was
14.2 per cent. Sales were negatively impacted by currency effects and inventory
adjustments made by customers at the end of the year. During the quarter, we
noted yet another price reduction for our principal raw materials. The operating
cash flow remained strong and amounted to 323 MSEK (363). During the quarter, we
acquired the US rubber compounding company, Robbins, with annual sales of
approximately 100 MUSD.

Our earnings for 2012 were the best so far for the HEXPOL Group. The growth and
earnings trends were strong during 2012. Sales rose by more than 11 per cent to
8,007 MSEK (7,197) and operating profit increased 19 per cent to 1,069 MSEK
(895). We increased earnings per share by 17 per cent to 21.88 SEK (18.65). The
operating cash flow was once again strong and rose to 1,209 MSEK (911). During
the year, we created a leading European TPE Compounding operation through the
Müller Kunststoffe acquisition, and we strengthened our position in the US
market through the acquisition of the US rubber compounding group, Robbins. Our
balance sheet is strong and with a net debt/equity multiple of 0.4 (0.4) we are
well equipped for continued expansion.” Georg Brunstam, President and CEO
For more information, please contact:

Georg Brunstam, President and CEO
Tel: +46 708 55 12 51

Karin Gunnarsson, Chief Financial Officer/Investor Relations Manager
Tel: +46 705 55 47 32
HEXPOL is a world-leading polymers group with strong global positions in
advanced rubber compounds (Compounding); gaskets for plate heat exchangers
(Gaskets); and plastic and rubber materials for truck and castor wheel
applications (Wheels). Customers are primarily OEM manufacturers of plate heat
exchangers and trucks, global systems suppliers to the automotive and
engineering industries and the medical technology industry. The Group is
organised in two business areas: HEXPOL Compounding and HEXPOL Engineered
Products. The HEXPOL Group’s sales in 2012 amounted to 8,007 MSEK. The HEXPOL
Group has approximately 3,300 employees in ten countries. Further information is
available at www.hexpol.com.

This report may contain forward-looking statements. When used in this report,
words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”
and “project” are intended to identify forward-looking statements. They may
involve risks and uncertainties, including product demand, market acceptance,
the effect of economic conditions, the impact of competitive products and
pricing, foreign currency exchange rates and other risks. These forward-looking
statements reflect the views of HEXPOL’s management as of the date made with
respect to future events and are subject to risks and uncertainties. All of
these forward-looking statements are based on estimates and assumptions made by
HEXPOL’s management and are believed to be reasonable, though are inherently
uncertain and difficult to predict. Actual results or experience could differ
materially from the forward-looking statements. HEXPOL disclaims any intention
or obligation to update these forward-looking statements.

The report consists of information that HEXPOL AB (publ) is obliged to disclose
in accordance with the Swedish Securities Market Act and/or the Financial
Trading Instruments Act. The information was submitted to the media for
publication on 7 February 2013 at 12:30 p.m.

This report has been prepared both in Swedish and English. In case of any
divergence in the content of the two versions, the Swedish version shall have
precedence.