Interim report January-September 2015

Third quarter 2015 – Continued strong growth and strong margins

  · Sales rose 20 per cent to 2,772 MSEK (2,312).
  · Operating profit increased 30 per cent to 505 MSEK (388).
  · Operating margin increased to 18.2 per cent (16.8).
  · Profit after tax increased 28 per cent to 358 MSEK (280).
  · Earnings per share rose 28 per cent to 1.04 SEK (0.81).
  · Operating cash flow increased to 503 MSEK (460).

Jan-Sep 2015 – Very strong growth and strong margins

  · Sales rose 31 per cent to 8,633 MSEK (6,588).
  · Operating profit increased 36 per cent to 1,508 MSEK (1,112).
  · Operating margin increased to 17.5 per cent (16.9).
  · Profit after tax increased 33 per cent to 1,067 MSEK (800).
  · Earnings per share rose 33 per cent to 3.10 SEK (2.32).
  · Integration of units acquired in 2014/2015 (Kardoes, Vigar Rubber
Compounding, Portage Precision Polymers and RheTech Thermoplastic Compounding)
proceeded according to plan.
  · Operating cash flow increased to 1,623 MSEK (1,159).
  · The share split 10:1 (each existing share is divided into ten shares),
resolved by the Annual General Meeting, was completed in May.

President’s comments

“The third quarter of 2015 was once again a strong quarter for the HEXPOL Group
– by far our best third quarter. The Group sales increased significantly, +20
per cent, and our operating profit also increased significantly, +30 per cent,
while the operating cash flow once again was strong, 503 MSEK. We had strong
sales growth primarily thanks to our (in 2014 and 2015) acquired units and
positive currency effects. Sales were negatively affected by considerably lower
sales prices due to considerably lower raw material prices than the
corresponding year-earlier period. The volume development was positive in both
Europe and NAFTA, however volumes in Asia were lower, compared to the
corresponding year-earlier period and price pressure has increased during the
quarter on all markets.

During January to September 2015, we have continued to improve our market
positions and the integration of the acquired units was implemented according to
plan. Our financial position remains very strong and with a net cash of 39 MSEK,
we are well equipped for continued expansion. At the beginning of the year, the
acquisition of RheTech Thermoplastic Compounding 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 October 23, 2015.