Interim report January-March 2015

First quarter 2015 – Very strong growth and strong margins

  · Sales rose 38 per cent to 2,951 MSEK (2,131).
  · Operating profit increased 36 per cent to 495 MSEK (364).
  · Operating margin amounted to 16.8 per cent (17.1).
  · Profit after tax increased 34 per cent to 352 MSEK (262).
  · Earnings per share rose 34 per cent to 10.23 SEK (7.61).
  · Operating cash flow increased to 480 MSEK (287).
  · The acquisition of RheTech Thermoplastic Compounding completed.
  · Integration of units acquired 2014/2015 (Kardoes, Vigar Rubber Compounding,
Portage Precision Polymers and RheTech Thermoplastic Compounding) proceeded
according to plan.
  · The Board of Directors proposes the Annual General Meeting to resolve on a
share split 10:1 so that each existing share is divided into ten shares.

President’s comments

“The first quarter of 2015 was a strong quarter for the HEXPOL Group – our best
so far. The Group sales increased significantly, +38 per cent, and our operating
profit also increased significantly, +36 per cent, while the operating cash flow
remained strong, 480 MSEK. We had strong sales growth primarily thanks to our
(in 2014 and 2015) acquired units, positive currency effects and improved
volumes in Europe and Asia and stable volumes in NAFTA. Simultaneously, sales
have been affected by lower prices for our principal raw materials, which have
been lower than the previous quarter and the year-earlier period. We have
continued to improve our market positions and the integration of the acquired
units proceeded according to plan. Our financial position remains very strong
and with a net debt of 232 MSEK, we are well equipped for continued expansion.
At the beginning of the year, the acquisition of RheTech Thermoplastic
Compounding, a leading provider of thermoplastic compounds, was finalized and
the business has developed according to plan.”

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 polymer compounds (Compounding), gaskets for plate heat exchangers
(Gasket), 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, the energy sector and medical equipment manufacturers.
The Group is organised in two business areas, HEXPOL Compounding and HEXPOL
Engineered Products. The HEXPOL Group’s sales in 2014 amounted to 8,919 MSEK.
The HEXPOL Group has approximately 3,900 employees in eleven 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”, “plan” and
“project” are intended to identify forward-looking statements. Such statements
could encompass risks and uncertainties pertaining to product demand, market
acceptance, effects of economic conditions, 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 but are subject to risks and uncertainties. While all
of these forward-looking statements are based on estimates and assumptions made
by HEXPOL’s management and are believed to be reasonable, they are inherently
uncertain and difficult to predict. Actual results and experience could differ
materially from the forward-looking statements. HEXPOL disclaims any intention
or obligation to update these forward-looking statements.

This report consists of such information that HEXPOL AB is obliged to disclose
in accordance with the Swedish Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted for publication on May 4,
2015, at 12:00 p.m. CET. 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..