Half-year report January-June 2015

Second quarter 2015 – Continued very strong growth and strong margins

  · Sales rose 36 per cent to 2,910 MSEK (2,145).
  · Operating profit increased 41 per cent to 508 MSEK (360).
  · Operating margin increased to 17.5 per cent (16.8).
  · Profit after tax increased 38 per cent to 357 MSEK (258).
  · Earnings per share rose 38 per cent to 1.04 SEK (0.75).
  · Operating cash flow increased to 640 MSEK (412).
  · The share split 10:1 (each existing share is divided into ten shares),
resolved by the Annual General Meeting, was completed in May.

First half of 2015 – Very strong growth and strong margins

  · Sales rose 37 per cent to 5,861 MSEK (4,276).
  · Operating profit increased 39 per cent to 1,003 MSEK (724).
  · Operating margin increased to 17.1 per cent (16.9).
  · Profit after tax increased 36 per cent to 709 MSEK (520).
  · Earnings per share rose 36 per cent to 2.06 SEK (1.51).
  · Integration of units acquired in 2014/2015 (Kardoes, Vigar Rubber
Compounding, Portage Precision Polymers and RheTech Thermoplastic Compounding)
was completed according to plan.
  · Operating cash flow increased to 1,120 MSEK (699).

President’s comments

“The second quarter of 2015 was once again a strong quarter for the HEXPOL Group
– our best quarter so far. The Group sales increased significantly, +36 per
cent, and our operating profit also increased significantly, +41 per cent, while
the operating cash flow once again was strong, 640 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 stable volumes in NAFTA.
Simultaneously, sales have been affected by lower prices for our principal raw
materials, which have been lower than the corresponding year-earlier period.

During the first half of 2015, we have continued to improve our market positions
and the integration of the acquired units was completed according to plan. Our
financial position remains very strong and with a net debt of 313 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
(Gaskets), and plastic and rubber materials for truck and castor wheel
applications (Wheels). Customers are primarily systems suppliers to the global
automotive and engineering industry, the energy, oil and gas sector, medical
equipment manufacturers and OEM manufacturers of plate heat exchangers and
forklifts. 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 press release consists of such information that HEXPOL AB (publ) may be
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 July 20, 2015.
Half-year report January-June 2015

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