HEXPOL — Earnings Release 2009

Feb 11, 2010

Year-end report 2009

Published on 11 February 2010

Fourth quarter of 2009 – Strong earnings and excellent cash flow

• Net sales rose to 703 MSEK (697)
• Operating profit increased 48 per cent to 80 MSEK (54)
• Profit after tax more than doubled to 68 MSEK (31)
• Earnings per share rose to 2.56 SEK (1.17)
• Operating cash flow was strong and totalled 143 MSEK (206)

Full-year 2009 – Favourable earnings thanks to forceful cost adjustments in a turbulent market

• Net sales totalled 2,608 MSEK (3,190), down 18 per cent
• Operating profit, excluding items affecting comparability, amounted to 261 MSEK (310). Including these items, profit amounted to 163 MSEK (310)
• Profit after tax, excluding items affecting comparability, amounted to 172 MSEK (183). Including these items, profit amounted to 102 MSEK (183)
• Earnings per share, excluding items affecting comparability, amounted to 6.48 SEK (6.89). Including these items, earnings per share amounted to 3.84 SEK (6.89)
• Operating cash flow totalled 462 MSEK (411), excluding items affecting comparability
• Restructuring costs, recognised during the first quarter, amounted to 98 MSEK
• The board of directors proposes a dividend of 1,00 SEK per share (0,00)

President's comments

"Our fourth-quarter earnings were strong and a major improvement compared with the corresponding quarter in 2008. We more than doubled our earnings per share and our operating profit amounted to 80 MSEK (54), up 48 per cent. We had a continuous improvement in sales, particularly to automotive customers, and yet again we coped with this volume increase in a flexible manner. As a result of continued efficiency in the handling of working capital, combined with our healthy earnings, cash flow remained very strong.

2009 was a turbulent year marked by sharply deteriorating demand. We coped with this situation favourably by taking rapid and forceful actions. We succeeded in achieving earnings per share that were almost in line with the preceding year at 6.48 SEK (6.89) (adjusted for items affecting comparability). The strong operating cash flow amounted to 462 MSEK and our net debt was reduced significantly. HEXPOL is well equipped to face 2010.

Georg Brunstam, President and CEO

Key figures		Oct-Dec
MSEK	2009	2008	2009	2008
Net sales	703	697	2 608	3 190
Operating profit, EBIT	80	54	163	310
Operating margin, %	11.4	7.7	6.3	9.7
Profit before tax	80	43	140	258
Profit after tax	68	31	102	183
Earnings per share, SEK	2.56	1.17	3.84	6.89
Equity/assets ratio, %			43.7	36.1
Return on capital employed, %			6.4	13.2

Group total

HEXPOL is a world-leading polymers group with strong global positions in advanced rubber 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 OEM manufacturers of plate heat exchangers and trucks, as well as global systems suppliers to the automotive industry. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products, and had about 1,800 employees in nine countries at year-end. In 2009, HEXPOL had sales of about 2,600 MSEK. Read more at www.hexpol.com.

Group total, continued

Key ratios, excluding items affecting		Oct-Dec	Jan-Dec
Comparability, MSEK	2009	2008	2009	2008
Operating profit, EBIT	80	54	261	310
Operating margin, %	11.4	7.7	10.0	9.7
Profit before tax	80	43	238	258
Net profit for the period	57	31	172	183
Earnings per share, SEK	2.15	1.17	6.48	6.89
Return on capital employed, %			10.3	13.2
Operating cash flow	143	206	462	411

Fourth quarter of 2009

Group sales rose to 703 MSEK (697). Exchange-rate fluctuations had a negative impact of 13 MSEK on sales, primarily due to the strengthening of the Swedish krona compared with the US dollar. Group sales increased 8 per cent compared with the third quarter.

During the fourth quarter, sales improved and volumes increased from our automotive customers in Europe. In NAFTA, volumes were satisfactory as a result of a stable market. HEXPOL improved its market positions in a market that had been strengthened in part by financial support to the automotive industry. In most countries, government-subsidised systems for paying a premium for the scrapping of cars, which had boosted car sales, have ceased. Stable demand was shown in customer segments in other sectors during the quarter.

Operating profit amounted to 80 MSEK (54), corresponding to an operating margin of 11.4 per cent (7.7). Exchange-rate fluctuations had a positive impact of 3 MSEK on operating profit during the quarter. The cost-cutting programme announced during the first quarter has now been successfully concluded and, as previously announced, the cost of the programme amounted to 98 MSEK, although a certain redistribution (4 MSEK) occurred between the Group's business areas.

Net sales Operating profit and operating margin

* excluding items affecting comparability

Sales in business area HEXPOL Compounding rose 6 per cent during the quarter to 553 MSEK (520). Compared with the third quarter of 2009, sales increased 7 per cent. Operating profit rose 60 per cent to 69 MSEK (43), adjusted for items affecting comparability, corresponding to an operating margin of 12.5 per cent (8.3). The improved operating margin resulted from forceful cost adjustments combined with increased sales to automotive customers.

In business area HEXPOL Engineered Products, sales decreased 15 per cent to 150 MSEK (177). Compared with the third quarter, sales rose 14 per cent. Operating profit amounted to 11 MSEK (11), adjusted for items affecting comparability, corresponding to an operating margin of 7.3 per cent (6.2). Compared with the third quarter, operating profit improved, thanks mainly to internal actions taken in both HEXPOL Wheels and HEXPOL Gaskets. The surplus capacity in the market continues, resulting in continued price pressure on the business area's products.

In the European market, demand increased during the quarter, compared with both the corresponding period in 2008 and the third quarter of 2009. The effects of the discontinuation of governmentsubsidised systems for paying a premium for the scrapping of cars remain difficult to evaluate.

The Group's compounding volumes in NAFTA were stable compared with the preceding year and the third quarter of 2009. Demand for polyurethane wheels was unchanged during the quarter.

In Asia, volume growth for the Group's operations was favourable, with sales increasing in relation to both the corresponding period in 2008 and the third quarter of 2009.

The number of employees during the quarter rose somewhat, primarily at the plants in Mexico and Sri Lanka. Notice has however been given to a small number of employees, mainly in the German operation.

The price of raw materials rose slightly during the quarter, due to higher prices in the global market and the increase in demand. The higher raw-material prices had virtually no impact on the Group's margins.

The Group's operating cash flow was very strong in the fourth quarter and amounted to 143 MSEK (206). Investments remained low and working capital decreased. The Group's net financial items during the fourth quarter amounted to 0 MSEK (expense: 11), whereby positive revaluation effects on cash and cash equivalents offset net interest expense, which amounted to 3 MSEK. The reduction in net interest expense was due to lower market interest rates for the Group's financing and to a decrease in net debt.

Profit before tax rose 86 per cent to 80 MSEK (43). Profit after tax increased sharply to 68 MSEK (31), corresponding to earnings per share of 2.56 SEK (1.17).

January-December 2009

The Group's full-year sales amounted to 2,608 MSEK (3,190), down 18 per cent. Exchange-rate fluctuations had a positive impact of 264 MSEK, primarily due to a substantial depreciation of the Swedish krona (SEK) against the US dollar and euro during the year. Operating profit amounted to 261 MSEK (310), adjusted for items affecting comparability, corresponding to an operating margin of 10.0 per cent (9.7). Exchange-rate fluctuations, mainly resulting from a weaker average SEK during the year, had a positive impact of 22 MSEK on operating profit.

In business area HEXPOL Compounding, sales declined 17 per cent to 2,020 MSEK (2,425), while operating profit rose to 231 MSEK (224), adjusted for items affecting comparability. Accordingly, the operating margin was 11.4 per cent (9.2). Demand and sales in the business area were initially weak but then rose gradually during the year.

In Europe, demand from customers in the automotive industry was very weak during the early part of the year, resulting in low volumes, although this was followed by a steady improvement. In NAFTA too, initially declining volumes in a weak market were followed by gradual improvements during 2009. In Asia, the compounding operations in China, showed a highly favourable volume trend, but from a relatively low level.

Sales in business area HEXPOL Engineered Products declined 23 per cent to 588 MSEK (765). Operating profit decreased to 30 MSEK (86), adjusted for items affecting comparability, corresponding to an operating margin of 5.1 per cent (11.2). During the year, the market for gaskets for plate heat exchangers experienced slackening demand and thus a weak volume trend. The operations and the market were marked by excess capacity, pressure on prices and fewer project deliveries than in the preceding year. In HEXPOL Wheels, the demand situation for polyurethane and rubber wheels gave rise to substantially lower sales during 2009 compared with the preceding year.

The Group's operating cash flow was strong during the year and amounted to 462 MSEK (411). The factors underlying the strong cash flow were the favourable earnings, a reduction in working capital, mainly through a downsizing of inventories, and a lower rate of investment. The Group's net financial items amounted to an expense of 23 MSEK (expense: 52) during the year.

Profit before tax amounted to 140 MSEK (258). Profit after tax amounted to 102 MSEK (183), corresponding to earnings per share of 3.84 SEK (6.89). Adjusted for items affecting comparability, earnings per share amounted to 6.48 SEK (6.89).

Profitability

Return on average capital employed amounted to 10.3 per cent (13.2), adjusted for items affecting comparability. Return on average shareholders' equity was 14.5 per cent (16.8), adjusted for items affecting comparability.

Financial position and liquidity

The equity/assets ratio was 43.7 per cent (36.1). The Group's total assets amounted to 2,788 MSEK (3,201). Net debt declined sharply and amounted to 760 MSEK (1,193), whereby the net debt/equity ratio amounted to a multiple of 0.6 (1.0). In May 2008, the Group signed a five-year credit agreement totalling 1.7 billion SEK with a number of Nordic banks.

Cash flow

Operating cash flow amounted to 462 MSEK (411), adjusted for items affecting comparability. The operating cash flow includes the positive effects of inventory reductions and a low rate of investment. Cash flow from operations amounted to 359 MSEK (393).

Investments, depreciation and amortization

The Group's net investments totalled 23 MSEK (105) for the year and mainly comprised investments in the finalisation of ongoing projects in China and Mexico. Depreciation, amortization and impairments during the year totalled 118 MSEK (93), of which impairments accounted for 34 MSEK.

Tax expenses

The Group's tax expenses during the year amounted to 38 MSEK (75). Adjusted for tax effects on restructuring costs, tax expenses amounted to 66 MSEK, corresponding to a tax rate of 27.7 per cent (29.1).

Personnel

The number of employees at year-end was 1,827 (2,230). During the year, the workforce was reduced by 403, mainly pertaining to operations in Canada, Sweden and Sri Lanka. At the end of the year, 18 employees had been laid off temporarily and 17 given employment-termination notices.

Business area HEXPOL Compounding

Business area HEXPOL Compounding is a world leader in the development and manufacture of high-quality advanced rubber compounds (Compounding). Customers are manufacturers of rubber products with stringent demands for performance and global delivery capacity. The largest market segments are the automotive industry, followed by the construction industry. Other key segments are the cabling, water treatment, pharmaceutical, energy and oil industries.

		Oct-Dec		Jan-Dec
MSEK	2009	2008	2009	2008
Net sales	553	520	2 020	2 425
Operating profit	73	43	155	224
Operating margin, %	13.2	8.3	7.7	9.2
excluding items affecting comparability
Operating profit	69	43	231	224
Operating margin, %	12.5	8.3	11.4	9.2

Sales amounted to 553 MSEK (520), up 6 per cent. Operating profit increased 60 per cent to 69 MSEK (43), excluding items affecting comparability, corresponding to an operating margin of 12.5 per cent (8.3). Compared with the third quarter, the increase in sales was 7 per cent. The business area's cost-reduction programme gave rise to a lower cost base, whereby volume growth during the quarter could be credited in full to operating profit. The effects of the discontinuation of government-subsidised systems for paying a premium for the scrapping of cars remain difficult to evaluate.

In Europe, the volume trend was favourable, and demand from automotive customers rose compared with the third quarter, primarily in the Czech Republic and Belgium. Compared with the corresponding quarter in 2008, demand in Europe was higher, which was largely attributable to the decline in the automotive industry which began in the fourth quarter of 2008.

In NAFTA, the volume trend was satisfactory. Volumes from automotive customers rose somewhat compared with the third quarter. Volumes in other segments of NAFTA remained unchanged compared with the preceding year. The operations in Mexico developed well and sales increased compared with the third quarter of 2009.

In Asia, the volume trend for the business area's unit in China was favourable, with deliveries significantly higher that in the year-earlier quarter.

Raw-material prices rose slightly during the fourth quarter but had virtually no impact on the business area's margins. The price pressure on the business area's products continued, due to surplus capacity.

Net sales Operating profit and operating margin *

* excluding items affecting comparability

Business area HEXPOL Engineered Products

Business area HEXPOL Engineered Products, through its considerable expertise in polymers and the production of rubber, plastic and polyurethane products, has gained a world-leading position as a supplier of advanced products, such as gaskets for plate heat exchangers (Gaskets) and wheels for truck and castor wheel applications (Wheels).

		Oct-Dec		Jan-Dec
MSEK	2009	2008	2009	2008
Net sales	150	177	588	765
Operating profit	7	11	8	86
Operating margin, %	4.7	6.2	1.4	11.2
excluding items affecting comparability
Operating profit	11	11	30	86
Operating margin, %	7.3	6.2	5.1	11.2

Sales amounted to 150 MSEK (177), down 15 per cent. Operating profit amounted to 11 MSEK (11), adjusted for items affecting comparability, which corresponded to an operating margin of 7.3 per cent (6.2). The sequentially improved operating margin resulted mainly from the business area's reduced cost base, which is a consequence of the action programme initiated during the first quarter.

Product area Gaskets continued to experience weak demand and reported reduced sales. Generally, the market was weak, with project-related sales remaining low. Capacity utilisation at the product area's units in Sweden and in Sri Lanka, continued to be low. Deliveries from the new unit in China are still low. The product area was under considered price pressure during the quarter.

Product area Wheels continued to operate in a challenging market. During the quarter, the lower cost base improved profitability in the product area, compared with the third quarter. As a result of weak demand for polyurethane wheels from the OEM segment, volumes remained low. The market for wheels was subject to price pressure, making it difficult to offset increases in raw-material prices.

All of the markets in the business area noted a weak volume trend and is subject to price pressure.

Net sales Operating profit and operating margin *

Parent Company

The Parent Company reported a loss of 15 MSEK (loss: 49) after tax. Shareholders' equity amounted to 365 MSEK (363).

Risk factors

The Group's and the Parent Company's business risks, risk management and management of financial risks are described in detail in the 2008 Annual Report. No events of significant importance occurred during the year that could affect or change these descriptions of the Group's or the Parent Company's risks and their management.

Accounting policies

This year-end report was prepared in accordance with IAS 34 Interim Reporting.

. The accounting and valuation policies applied in the 2008 Annual Report were also applied in this year-end report. The following recently issued standards relative to HEXPOL's accounts have been relevant to the preparation of this interim report:

• IFRS 8 Operating segments. The Group's previously reported primary segments match the definitions of operating segments.
• IFRS 1 Presentation of financial reports.

Owners and legal structure

HEXPOL AB (publ), corporate registration number 556108-9631, is the Parent Company of the HEXPOL Group. HEXPOL's class B shares are listed on the Stockholm Mid Cap industrial segment of NASDAQ OMX Nordic. HEXPOL had 8,281 shareholders on 31 December 2009. The largest shareholder is Melker Schörling AB with 27 per cent of the capital and 48 per cent of the voting rights. The 20 largest shareholders own 72 per cent of the capital and 80 per cent of the voting rights.

Annual General Meeting, 7 May 2010 at 3:00 p.m.

The Annual General Meeting will be held on 7 May 2010 at 3:00 p.m. in Malmö (Börshuset, Skeppsbron 2). The Annual Report for 2009 will be distributed to shareholders no later than during the week beginning 19 April and will also be made available on HEXPOL's website and at the company's headquarters. Shareholders who wish to participate in the Annual General Meeting must be included in the shareholders' register maintained by the Swedish Securities Register Centre (VPC) by 30 April 2010 at the latest and must report their participation to HEXPOL's head office no later than noon on 30 April. Trustee-registered shareholders must temporarily register their shares in their own names before 30 April to be entitled to participate in the Meeting.

Dividend proposal

The Board of Directors has proposed that the Annual General Meeting on 7 May decide to pay a dividend of 1.00 SEK (0) for 2009.

Proposal from the Nomination Committee

The appointed Nomination Committee, comprising Mikael Ekdahl (Melker Schörling AB), Anders Algotsson (AFA Försäkring), Åsa Nisell (Swedbank Robur) and Henrik Didner (Didner & Gerge Fonder), has submitted to the Company the following proposal regarding nominations to the Board: reelection of Board members Melker Schörling, Alf Göransson, Jan-Anders Månsson, Malin Persson, Ulrik Svensson and Georg Brunstam.

Invitation to presentation of report

This report will be presented at Ålandsbanken's offices at Stureplan 19, Stockholm, at 9:00 a.m. on 11 February. The presentation, as well as information concerning participation, will also be available at www.hexpol.com.

Calendar for financial information

HEXPOL AB will publish financial information on the following dates:

Event Date

• Publication of 2009 Annual Report April 2010
• Annual General Meeting 7 May 2010, 3:00 p.m.
• Interim report January March 2010 7 May 2010
• Interim report, January June 2010 21 July 2010
• Interim report, January September 2010 22 October 2010
• Year-end report 2010 February 2011

Financial information is also available in Swedish and English on HEXPOL AB's website at www.hexpol.com.

For further information, contact:

• Georg Brunstam, President and CEO Tel: +46 708 55 12 51
• Urban Ottosson, CFO Tel: +46 767 85 51 44

The year-end report for 2009 was not subject to special review by the HEXPOL AB's auditors.

Malmö, 11 February 2010 HEXPOL AB (publ)

Georg Brunstam, President and CEO

Address: Skeppsbron 3 SE-211 20 Malmö Sweden

Corporate registration number:	556108-9631
Tel:	+46 40 25 46 60
Fax:	+ 46 40 25 46 89
Website:	www.hexpol.com

This is the type of information that HEXPOL AB is obligated to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. This report has been prepared in both swedish and english. In case of vacation in the content of the two versions, the Swedsih version shall take precendence. The information was submitted to the media for publication at 8:00 a.m. on February 11, 2010.

Group's income statement

		Oct-Dec	Jan-Dec
MSEK	2009	2008	2009	2008
Net sales	703	697	2 608	3 190
Cost of goods sold 1)	-555	-580	-2 185	-2 655
Gross profit	148	117	423	535
Selling and administration costs, etc. 2)	-68	-63	-260	-225
Operating profit	80	54	163	310
Financial income and expenses	0	-11	-23	-52
Profit before tax	80	43	140	258
Tax	-12	-12	-38	-75
Net profit for the period	68	31	102	183
- of which attributable to the Parent Company's shareholders	68	31	102	183
Earnings per share, SEK	2,56	1,17	3,84	6,89
Earnings per share, excl. items affecting comparability, SEK	2,15	1,17	6,48	6,89
Shareholders' equity per share, SEK			45,83	43,57
Average number of shares. thousands	26 552	26 552	26 552	26 552
Incl. depreciation, amortisation and impairment of	-19	-24	-118	-93
1) of which, items affecting comparability	7	-	-70	-
2) of which, items affecting comparability	-7	-	-28	-

Group's report of comprehensive income

		Oct-Dec		Jan-Dec
MSEK	2009	2008	2009	2008
Profit for the period	68	31	102	183
Cash-flow hedging, net after tax	-1	-21	21	-19
Currency translation difference	13	85	-64	151
Comprehensive income	80	95	59	315
- of which, attributable to Parent Company shareholders	80	95	59	315

Group's balance sheet

	31 Dec	31 Dec
MSEK	2009	2008
Intangible fixed assets	1 237	1 279
Tangible fixed assets	712	843
Financial fixed assets	1	1
Deferred tax assets	27	44
Total fixed assets	1 977	2 167
Inventories	204	340
Accounts receivable	246	310
Other receivables	31	21
Prepaid expenses and accrued income	13	21
Cash and cash equivalents	317	342
Total current assets	811	1 034
Total assets	2 788	3 201
Attributable to the Parent Company's shareholders	1 217	1 157
Total shareholders' equity	1 217	1 157
Interest-bearing liabilities	1 001	1 372
Deferred tax liabilities	30	27
Pension provisions	11	11
Total non-current liabilities	1 042	1 410
Interest-bearing liabilities	127	163
Accounts payable	287	305
Other liabilities	18	33
Accrued expenses and deferred income, provisions	97	133
Total current liabilities	529	634
Total shareholders' equity and liabilities	2 788	3 201

Group's changes in shareholders' equity

	31 Dec	31 Dec
MSEK	2009	2008
Opening shareholders' equity	1 157	1 025
Comprehensive income	59	315
Dividend	-	-181
Stock option premium	1	7
Expenses in conjunction with stock listing	0	-9
Closing shareholders' equity	1 217	1 157

Number of shares, trend

	Total number of Class A shares	Total number of Class B shares	Total number of shares
Number of shares at 1 January	1 181 250	25 370 727	26 551 977
Number of shares at the end of the year	1 181 250	25 370 727	26 551 977

Incentive programme 2008/2011

At the Extraordinary General Meeting on 18 August 2008, it was resolved to offer a warrant programme to senior executives totalling 1,325,000 warrants. Each warrant entitles the holder to subscribe for one share. The redemption period is 1 March 2011 to 1 September 2011.

During 2008, 933,250 warrants were subscribed for by senior executives at a subscription price of 65.70 SEK. During 2009, 175,000 warrants were subscribed for by senior executives at a subscription price of 56.60 SEK. The option premium on both occasions was 8 SEK per warrant.

No increase in number of shares has occurred during 2009 due to incentive programme.

Group's cash flow statement

	Jan-Dec
MSEK	2009	2008
Cash flow from operations before change in working capital	256	280
Utilisation of structural reserves	-37	-
Change in working capital	140	113
Cash flow from operating activities	359	393
Cash flow from investing activities	-23	-105
Cash flow from financing activities	-358	-194
Change in cash and cash equivalents	-22	94
Cash and cash equivalents at 1 January	342	228
Exchange-rate differences in cash and cash equivalents	-3	20
Cash and cash equivalents at the close of the period	317	342

Operating cash flow, Group

		Jan-Dec
MSEK	2009	2008
Operating profit excl. items affecting comparability	261	310
Depreciation/amortisation	84	93
Change in working capital	140	113
Investments	-23	-105
Operating cash flow	462	411

Other key figures

	Oct-Dec			Jan-Dec
	2009	2008	2009	2008
Profit margin before tax, %	11.4	6.2	5.4	8.1
Profit margin before tax, excl. items affecting comparability, %	11.4	6.2	9.1	8.1
Return on shareholders' equity, %			8.6	16.8
Return on shareholders' equity, excl. items affecting comparability, %			14.5	16.8
Interest-coverage ratio, multiple			7.1	4.2
Net debt, MSEK			760	1 193
Net debt ratio, multiple			0.6	1.0
Cash flow per share, SEK	4.86	7.95	13.52	14.80
Cash flow per share before change in working capital, SEK	3.24	2.23	9.64	10.55

Quarterly data, Group

Sales per business area	2009					2008
MSEK	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year
HEXPOL Compounding	481	467	519	553	2 020	648	648	609	520	2 425
HEXPOL Engineered Products	166	140	132	150	588	204	198	186	177	765
Total Group	647	607	651	703	2 608	852	846	795	697	3 190
Sales per geographic area	2009					2008
MSEK	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year
Europe	317	294	319	366	1 296	535	531	449	349	1 864
NAFTA	297	280	294	296	1 167	284	276	309	318	1 187
Asia	33	33	38	41	145	33	39	37	30	139
Total Group	647	607	651	703	2 608	852	846	795	697	3 190
Operating profit per business area	2009					2008
MSEK	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year
HEXPOL Compounding	-41	49	74	73	155	55	63	63	43	224
HEXPOL Engineered Products	-11	5	7	7	8	28	25	22	11	86
Total Group	-52	54	81	80	163	83	88	85	54	310
Operating profit per business area	2009					2008
excluding items affecting comparability
MSEK	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year
HEXPOL Compounding	39	49	74	69	231	55	63	63	43	224
HEXPOL Engineered Products	7	5	7	11	30	28	25	22	11	86
Total Group	46	54	81	80	261	83	88	85	54	310
Operating margin per business area	2009					2008
excluding items affecting comparability
%	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full year
HEXPOL Compounding	8.1	10.5	14.3	12.5	11.4	8.5	9.7	10.3	8.3	9.2
HEXPOL Engineered Products	4.2	3.6	5.3	7.3	5.1	13.7	12.6	11.8	6.2	11.2
Total Group	7.1	8.9	12.4	11.4	10.0	9.7	10.4	10.7	7.7	9.7

Parent Company income statement

	Oct-Dec			Jan-Dec
MSEK	2009	2008	2009	2008
Net sales	7	8	31	30
Selling and administration costs, etc.	-7	-7	-33	-33
Operating profit	0	1	-2	-3
Financial income and expenses	-3	-15	-19	-54
Loss before tax	-3	-14	-21	-57
Tax	2	-4	6	8
Net loss for the period	-1	-18	-15	-49

Parent Company balance sheet

	31 Dec	31 Dec
MSEK	2009	2008
Total fixed assets	1 497	1 480
Total current receivables	565	675
Total assets	2 062	2 155
Total shareholders' equity	365	363
Total non-current liabilities	924	1 254
Total current liabilities	773	538
Total shareholders' equity and liabilities	2 062	2 155

Financial definitions

Capital employed	Total assets less non-interest-bearing liabilities.
Cash flow	Cash flow from operating activities after change in working capital.
Cash flow per share	Cash flow from operating activities after change in working capital, divided by average number of shares.
Earnings per share	Net profit divided by average number of shares.
Equity/assets ratio	Shareholders' equity as a percentage of total assets.
Interest-coverage ratio	Profit before tax plus interest expenses divided by interest expenses.
Investments	Purchases less sales of tangible and intangible fixed assets, excluding those included in acquisitions and divestments of subsidiaries.
Net debt/equity ratio	Interest-bearing liabilities less cash and cash equivalents divided by shareholders' equity.
Net debt	Interest-bearing liabilities less cash and cash equivalents and interest-bearing assets.
Operating cashflow	Operating result less depreciation and investments after change in working capital.
Operating margin	Operating profit as a percentage of net sales for the period.
Profit margin before tax	Profit before tax as a percentage of net sales for the period.
Return on capital employed	Profit before tax plus interest expenses as a percentage of average capital employed.
Return on equity	Net profit as a percentage of average shareholders' equity.
Shareholders' equity per share	Shareholders' equity divided by the number of shares at period end.