Interim report January-September 2016


Third quarter 2016 – Positive volume development and continued strong result

  · Sales amounted to 2,742 MSEK (2,772).
  · Operating profit amounted to 475 MSEK (505).
  · Operating margin amounted to 17.3 per cent (18.2).
  · Profit after tax amounted to 339 MSEK (358).
  · Earnings per share amounted to 0.98 SEK (1.04).
  · Operating cash flow rose to 585 MSEK (503).

Jan-Sep 2016 – Positive volume development and continued strong result

  · Sales amounted to 8,126 MSEK (8,633).
  · Operating profit amounted to 1,437 MSEK (1,508).
  · Operating margin increased to 17.7 per cent (17.5).
  · Profit after tax amounted to 1,023 MSEK (1,067).
  · Earnings per share amounted to 2.97 SEK (3.10).
  · Operating cash flow amounted to 1,490 MSEK (1,623).
  · In the beginning of June, Berwin Group, a leading Rubber Compounder in the
UK market, was acquired.

President’s comments

“The third quarter of 2016 was a quarter with higher volumes and continued
strong result. The Group sales amounted to 2,742 MSEK and the operating margin
amounted to 17.3 per cent. The operating margin was negatively affected by the
lower operating margin in the acquired Berwin Group, adjusted for the
acquisition the operating margin was in line with the second quarter. The
operating cash flow was once again strong, 585 MSEK. The volumes were higher
compared with the corresponding year-earlier period, with continued strong
volumes to automotive related customers. Sales have once again been negatively
affected by considerably lower sales prices due to considerably lower raw
material prices than the corresponding year-earlier period. Price pressure was
continued strong on all markets.

During January-September, the volume development was positive with continued
strong result. In the beginning of June, Berwin Group, a leading UK Rubber
Compounder, was acquired. Our financial position remains very strong and with a
net cash of 759 MSEK, we are well equipped for further 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 market positions in
advanced polymer compounds (Compounding), gaskets for plate heat exchangers
(Gaskets), and wheels made of plastic and rubber materials for truck and castor
wheel applications (Wheels). Customers are primarily system suppliers to the
global automotive and engineering industry, the construction sector, 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 2015 amounted to 11,229 MSEK. The HEXPOL Group has approximately 4,100
employees in eleven countries. Further information is available at
www.hexpol.com.

This information is information that HEXPOL AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the agency of the contact person set out above, at 8:00
a.m. CET on October 27, 2016. 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.

Attachments

10259619.pdf