HEXPOL

Interim / Quarterly Report • Jul 21, 2010

Half-Year Report January – June 2010

Published on 21 July 2010

Second quarter of 2010 – Sharp growth with continued strong margins

• Net sales increased by 59 per cent to 966 MSEK (607).
• Operating profit more than doubled and amounted to 116 MSEK (54).
• Operating margin was 12.0 per cent (8.9).
• Profit after tax amounted to 80 MSEK (32).
• Earnings per share increased 150 per cent, amounting to 3.02 SEK (1.20).
• Operating cash flow amounted to 117 MSEK (174).
• The acquired Elasto Group was consolidated as of 1 April, developed favourably and better than plan.

First half of 2010 – Sharp growth with strong margins

• Net sales increased by 37 per cent, amounting to 1,716 MSEK (1,254).
• Operating profit increased to 203 MSEK (2), excl. items affecting comparability 203 MSEK (100).
• Profit after tax totalled 138 MSEK (loss: 23), excl. items affecting comparability 138 MSEK (58).
• Earnings per share increased to 5.20 SEK (loss: 0.87), excl. items affecting comparability 5.20 SEK (2.18).
• Operating cash flow amounted to 179 MSEK (207).

President's comments

"Our second-quarter growth was very strong, with sales up 59 per cent. Organic growth, excluding the acquisition of Elasto Group, was also impressive at 42 per cent. Our already strong operating margin increased to 12.0 per cent (8.9). We saw a sharp sales increase, notably to automotive-related customers, and we again coped with the volume increase in a flexible manner. The acquisition of Elasto Group – with units in the UK and Sweden – developed favourably and better than plan.

Growth for the first six months of the year was strong. Sales increased by 37 per cent, with organic growth accounting for 29 per cent. Operating profit more than doubled, amounting to 203 MSEK (100*). Earnings per share increased by 138 per cent and totalled 5.20 SEK (2.18*)".

Georg Brunstam, President and CEO

Group total

Key figures		April-June		Jan.-June		July 09-
MSEK	2010	2009	2010	2009	2009	June 10
Net sales	966	607	1 716	1 254	2 608	3 070
Operating profit, EBIT	116	54	203	2	163	364
Operating margin, %	12.0	8.9	11.8	0.2	6.3	11.9
Profit before tax	111	45	193	-16	140	349
Profit after tax	80	32	138	-23	102	263
Earnings per share, SEK	3.02	1.20	5.20	-0.87	3.84	9.91
Equity/assets ratio, %			39.4	39.0	43.7
Return on capital employed, %			15.6	neg	6.4	13.7

Operating key figures		April-June	Jan.-June		Full-year	July 09-
MSEK	2010	2009	2010	2009*	2009*	June 10*
Operating profit, EBIT	116	54	203	100	261	364
Operating margin, %	12.0	8.9	11.8	8.0	10.0	11.9
Profit before tax	111	45	193	82	238	349
Profit after tax	80	32	138	58	172	252
Earnings per share, SEK	3.02	1.20	5.20	2.18	6.48	9.50
Return on capital employed, %			15.6	7.4	10.3	13.7
Operating cash flow	117	174	179	207	462	434

* Excluding item affecting comparability

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, global systems suppliers to the automotive industry and the medical technology industry. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products, and has some 2,200 employees in nine countries. HEXPOL reported sales of about 2,600 MSEK in 2009. Read more at www.hexpol.com.

Second quarter of 2010

Group sales increased sharply and amounted to 966 MSEK (607), up 59 per cent. Organic sales growth, adjusted for the acquisition of Elasto Group, totalled 42 per cent. Exchange-rate fluctuations had an adverse impact of 74 MSEK on sales. Compared with the first quarter of 2010, Group sales increased by 29 per cent, of which 15 per cent was organic.

Sales continued to increase, notably to automotive-related customers, and again we coped with the volume increase in a flexible manner. Sales both in NAFTA and Europe increased sharply. The Group enhanced its market position in all areas during the quarter.

Operating profit increased sharply and totalled 116 MSEK (54), representing an operating margin of 12.0 per cent (8.9). The acquired Elasto Group progressed fair and better than plan. Exchange-rate fluctuations had a negative impact of 13 MSEK on operating profit during the quarter. The higher operating margin is attributable primarily to superior capacity utilisation and a continuing low cost base.

The HEXPOL Compounding business area increased its sales by 67 per cent (45 per cent adjusted for the acquisition of Elasto Group) to 779 MSEK (467) during the quarter. Compared with the first quarter of 2010, sales increased by 34 per cent, of which 16 per cent was organic. Operating profit more than doubled and totalled 100 MSEK (49), representing an operating margin of 12.8 per cent (10.5). Operating margin increased primarily as a result of higher sales, superior capacity utilisation and an unchanged cost base.

The HEXPOL Engineered Products business area increased its sales 34 per cent to 187 MSEK (140). Sales were up 11 per cent from the first quarter of 2010. Operating profit increased sharply and amounted to 16 MSEK (5), entailing an operating margin of 8.6 per cent (3.6). Operating margin improved primarily as a result of in-house programmes both at HEXPOL Wheels and HEXPOL Gaskets, combined with higher sales during the quarter. Market demand improved slightly compared with the preceding quarter but excess capacity remains in the market, with continuing pressure on prices for the business area's products.

The Group's deliveries within Europe were high during the quarter. Capacity utilisation increased, in comparison both with the year-earlier period and the first quarter of 2010. The largest volume increase was noted in the automotive segment in Eastern Europe, although volumes for other segments of the European market were considerably better than in the year-earlier period.

The Group's deliveries within NAFTA increased sharply compared with the preceding year but also compared to the first quarter of 2010. Demand increased across the board in all customer segments and product areas compared with the preceding year. Deliveries in Mexico increased sharply, again primarily to the automotive segment.

In Asia, sales increased sharply, albeit from a relatively low level, with a substantial increase compared with the year-earlier period.

The number of employees increased from the first quarter of 2010, primarily as a result of the acquisition of Elasto Group, and mainly in operations based in North America and Sri Lanka.

Raw material prices continued to increase during the quarter due to higher world market prices and increased demand. Shortages actually arose in the case of certain raw materials during the quarter. However, higher raw materials prices have generally not had any impact on Group margins.

The Group's operating cash flow during the second quarter amounted to 117 MSEK (174). Investments remained low while working capital increased slightly as a result of increased sales and higher raw materials prices. The Group's net financial items during the second quarter amounted to an expense of 5 MSEK (expense: 9), due to lower market interest rates.

Profit before tax increased sharply, amounting to 111 MSEK (45). Profit after tax increased and amounted to 80 MSEK (32), corresponding to earnings per share of 3.02 SEK (1.20).

First half of 2010

(comparative figures for 2009, indicated by *, are reported exclusive of items affecting comparability)

Group sales increased sharply during the first half of the year, advancing 37 per cent to 1,716 MSEK (1,254), of which 29 per cent was organic. Exchange-rate fluctuations adversely impacted sales by 165 MSEK, due primarily to the strengthening of SEK against USD and EUR. Operating profit increased sharply to 203 MSEK (100*), corresponding to an operating margin of 11.8 per cent (8.0*). A strong SEK adversely affected earnings by 27 MSEK.

The HEXPOL Compounding business area sharply increased its sales by 43 per cent to 1,360 MSEK (948), entailing an improvement in operating profit, which totalled 174 MSEK (88*). Adjusted for the acquisition of Elasto Group, sales rose 33 per cent. Operating margin increased and was 12.8 per cent (9.3*). Demand for the business area's products strengthened steadily during the first half of the year, both within NAFTA and Europe. Demand from automotive customers was strong, notably in Eastern Europe. In Asia, operations in Qingdao, China, saw a steep increase in volumes, as did operations in Mexico.

The HEXPOL Engineered Products business area increased its sales by 16 per cent to 356 MSEK (306). Operating profit totalled 29 MSEK (12*), representing an operating margin of 8.1 per cent (3.9*). Sales of gaskets for plate heat exchangers recovered slightly during the first six months. Overall, the market was marked by a cautious increase in activity, but without any major project deliveries. Demand for polyurethane and rubber wheels progressed positively during the first half-year.

The Group's operating cash flow during the first six months of the year amounted to 179 MSEK (207). Cash flow was attained mainly via increased operating profit and a low investment level. Higher sales led to an increase in working capital. The Group's net financial items resulted in an expense of 10 MSEK (expense: 18). The Group's net financial items were charged with higher net debt resulting from the acquisition of Elasto Group. Market interest rates, however, remained lower compared with the yearearlier period.

Profit before tax increased sharply to 193 MSEK (82*). Profit after tax increased 138 per cent and amounted to 138 MSEK (58*), corresponding to earnings per share of 5.20 SEK (2.18*).

Profitability

The return on average capital employed was 15.6 per cent (7.4*). The improvement was primarily attributable to improved profits. The return on shareholders equity was 21.5 per cent (10.0*).

Financial position and liquidity

The equity/assets ratio was 39.4 per cent (39.0). The Group's total assets amounted to 3,412 MSEK (3,010). Net debt increased as a result of the acquisition of Elasto Group and totalled 1,048 MSEK (975). The net debt/equity ratio was a multiple of 0.8 (0.8). The financial position remained strong also after the acquisition of Elasto Group.

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 179 MSEK (207*). Operating cash flow includes the positive effects of a low investment rate and higher profit before depreciation and amortisation. Cash flow from operating activities was 113 MSEK (162).

Investments, depreciation and amortisation

The Group's net investments during the half-year totalled 8 MSEK (18). Depreciation and amortisation amounted to 42 MSEK (43*).

Tax expenses

The Group's tax expenses were 55 MSEK (24*), corresponding to a tax rate of 28.5 per cent (28.7*).

Personnel

The number of employees at the close of the period was 2,196 (1,704). During the period, the number of employees increased as a result of the acquisition of Elasto Group and mainly in operations pursued in North America and Sri Lanka.

Business area HEXPOL Compounding

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

		April-June		Jan.-June		July 09-
MSEK	2010	2009	2010	2009*	year 2009*	June 10*
Net sales	779	467	1 360	948	2 020	2 432
Operating profit	100	49	174	88	231	317
Operating margin, %	12.8	10.5	12.8	9.3	11.4	13.0

* excluding items affecting comparability

The business area's sales during the quarter amounted to 779 MSEK (467), up 67 per cent (45 per cent adjusted for the acquisition of Elasto Group). Operating profit increased sharply and amounted to 100 MSEK (49), representing an operating margin of 12.8 per cent (10.5). Compared with the first quarter of 2010, sales increased by 34 per cent. During the quarter, the business area enjoyed favourable volume growth and managed to expand in all existing segments and markets.

The business area's volumes in Europe increased steeply compared with the year-earlier period, primarily attributable to automotive-related customers in the Czech Republic and Belgium. Demand from other segments was also strong.

The volumes delivered within NAFTA were substantially higher than during the year-earlier period. Volumes also rose compared with the first quarter of 2010, mainly to automotive-related customers, but also developed favourably in other segments. Operations in Mexico progressed well, with higher sales compared with the year-earlier period and the first quarter of 2010.

In Asia, operations in China saw a sharp increase in sales, with deliveries significantly higher than in both the year-earlier period and the first quarter of 2010.

Elasto Group developed favourably and better than plan in all customer groups, reporting sales of 103 MSEK during the second quarter.

Raw materials prices increased during the second quarter, with shortages arising for certain materials. Higher raw materials prices generally did not impact the business area's margins.

Net sales Operating profit & operating margin * excluding items affecting comparability

Business area HEXPOL Engineered Products

The HEXPOL Engineered Products business area 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) through its considerable expertise in polymers and the production of rubber, plastic and polyurethane products.

		April-June		Jan.-June		July 09-
MSEK	2010	2009	2010	2009*	2009*	June 10*
Net sales	187	140	356	306	588	638
Operating profit	16	5	29	12	30	47
Operating margin, %	8.6	3.6	8.1	3.9	5.1	7.4

* excluding items affecting comparability

The business area's sales increased 34 per cent, totalling 187 MSEK (140). Operating profit increased significantly to 16 MSEK (5), representing an operating margin of 8.6 per cent (3.6). The improvement in operating margin resulted from the business area's lower cost base, higher capacity utilisation and superior sales. Operating margin has steadily increased over the past four quarters.

The Gaskets product area reported increased sales and saw higher demand during the quarter. However, sales to project-related operations remained low, while other sales increased during the quarter. The product area is marked by continuing strong pressure on prices and rising raw materials prices.

The Wheels product area improved its performance during the quarter. The product area increased its sales compared with the year-earlier period and the first quarter of 2010, notably to customers in Europe and NAFTA. Sales of polyurethane wheels to the OEM segment increased slightly during the quarter compared with the year-earlier period and sequentially. However, all HEXPOL's wheels markets experienced price pressure during the quarter, leading to difficulties in offsetting movements in raw materials prices.

Parent Company

The Parent Company reported a loss after tax of 8 MSEK (loss: 10). Shareholders' equity amounted to 330 MSEK (353).

Risk factors

The Group's and Parent Company's business risks, risk management and management of financial risks are described in detail in the 2009 Annual Report. No significant events occurred during the period that could affect or change aforementioned descriptions of the Group's or the Parent Company's risks and their management.

Accounting principles

The consolidated financial statements contained in this interim report have been prepared in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU and with the Swedish Annual Accounts Act. The Parent Company's financial statements have been prepared in compliance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.3, Interim Reporting for Legal Entities.

This six-month report has been prepared in accordance with IAS 34 Interim Reporting. The accounting and measurement policies, as well as the assessment bases, applied in the 2009 Annual Report have also been applied in this six-month report. From HEXPOL's viewpoint, the following revised standards have been relevant to the preparation of this six-month report:

Revised IFRS 3 Business Combinations and amended IAS 27R Consolidated and Separate Financial Statements will be applied in connection with acquisitions and disposals of operations as of 2010.

Ownership structure

HEXPOL AB (publ), corporate registration number 556108-9631, is the Parent Company of the HEXPOL Group. HEXPOL's Series B shares are listed on the Stockholm Mid Cap industrial segment of the NASDAQ OMX Nordic exchange. HEXPOL had 8,059 shareholders as of 30 June 2010. The largest owner is Melker Schörling AB, with 27 per cent of the total capital and 48 per cent of voting rights. The 20 largest shareholders own 70 per cent of the capital and 79 per cent of voting rights.

Acquisition of Elasto Group

As of 1 April 2010, HEXPOL acquired Elasto Group from the British VITA Group. Elasto Group has estimated annual sales of 33 MEUR, with a workforce of some 85. The Group is a manufacturer of thermoplastic elastomer compounds, with manufacturing facilities in the UK and Sweden.

Elasto Group was consolidated as of 1 April 2010 and is included in the HEXPOL Compounding business area. The acquisition price, adjusted for the acquired net debt, totalled 35 MEUR in cash, or 343 MSEK. The acquired assets and liabilities amounted to 179 MSEK and 82 MSEK, respectively. Thus, the fair value of net assets was 97 MSEK. The surplus value arising in conjunction with the acquisition is primarily attributable to goodwill. Acquisition transaction costs totalled 1.6 MSEK. The Group's ownership share is 100 per cent.

Invitation to the presentation of the report

A presentation of this report will take place via a telephone conference on 21 July at 1:00 p.m CET. The presentation, as well as information regarding participation, is available at www.hexpol.com.

Calendar for financial information

HEXPOL AB plans to publish financial information on the following dates:

Event Date

• Interim report, third quarter 2010 22 October 2010
• Year-end report, 2010 7 February 2011
• Annual General Meeting 2011 6 May 2011
• Interim report, first quarter 2011 6 May 2011
• Half-year report, 2011 21 July 2011

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

For additional information, contact:

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

Assurance by the Board of Directors

The half-year interim report provides an accurate overview of the Company's and the Group's operations, position and earnings. In addition, it describes the significant risks and uncertainty factors to which the Parent Company and Group companies are exposed.

This half-year interim report was not reviewed by the Company's auditors.

Malmö, 21 July 2010 HEXPOL AB (publ)

Melker Schörling, Ulrik Svensson Chairman of the Board of Directors

Alf Göransson Malin Persson

Jan-Anders Månson Georg Brunstam,

President and CEO

Address: Skeppsbron 3 SE-211 20 Malmö

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

The above is the type of 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 to the media for publication at 12:00 noon on 21 July 2010. 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.

Group's income statement

		April-June		Jan.-June	Full-year	July 09-
MSEK	2010	2009	2010	2009	2009	June 10
Net sales	966	607	1 716	1 254	2 608	3 070
Costs of goods sold 1)	-783	-498	-1 387	-1 117	-2 185	-2 455
Gross profit	183	109	329	137	423	615
Selling and administration costs, etc. 2)	-67	-55	-126	-135	-260	-251
Operating profit	116	54	203	2	163	364
Financial income and expenses	-5	-9	-10	-18	-23	-15
Profit before tax	111	45	193	-16	140	349
Tax	-31	-13	-55	-7	-38	-86
Net profit/loss for the period	80	32	138	-23	102	263
- of which, attributable to Parent Company shareholders	80	32	138	-23	102	263
Earnings per share, SEK	3.02	1.20	5.20	-0.87	3.84	9.91
Earnings per share after dilution, SEK	2.98	1.20	5.15	-0.87	3.84	9.86
Earnings per share, excluding items affecting comparability, SEK	3.02	1.20	5.20	2.18	6.48	9.50
Shareholders' equity per share, SEK			50.66	44.22	45.83	50.66
Average number of shares, thousands	26 552	26 552	26 552	26 552	26 552	26 552
Average number of shares after dilution, thousands	26 845	26 552	26 797	26 552	26 552	26 671
Depreciation, amortisation and impairment included in an amount of	-23	-21	-42	-80	-118	-80
1) of which, items affecting comparability	-	-	-	-77	-70	7
2) of which, items affecting comparability	-	-	-	-21	-28	-7

Group's statements of comprehensive income

	April-June			Jan.-June	Full-year	July 09-
MSEK	2010	2009	2010	2009	2010	June 10
Profit for the period	80	32	138	-23	102	263
Cash-flow hedging, net after tax	0	7	1	15	21	7
Translation differences	28	-4	16	25	-64	-73
Comprehensive income	108	35	155	17	59	197
- of which attributable to Parent Company shareholders	108	35	155	17	59	197

Group's balance sheet

	30 June	30 June	31 Dec.
MSEK	2010	2009	2009
Intangible fixed assets	1 537	1 294	1 237
Tangible fixed assets	754	784	712
Financial fixed assets	1	1	1
Deferred tax assets	56	34	27
Total fixed assets	2 348	2 113	1 977
Inventories	277	229	204
Accounts receivable	445	292	246
Other receivables	30	36	31
Prepaid expenses and accrued income	13	14	13
Cash and cash equivalents	299	326	317
Total current assets	1 064	897	811
Total assets	3 412	3 010	2 788
Attributable to Parent Company shareholders	1 345	1 174	1 217
Total shareholders' equity	1 345	1 174	1 217
Interest-bearing liabilities	1 259	1 216	1 001
Deferred tax liabilities	51	26	30
Provision for pensions	11	11	11
Total non-current assets	1 321	1 253	1 042
Interest-bearing liabilities	133	148	127
Accounts payable	423	250	287
Other liabilities	45	45	18
Accrued expenses, prepaid income, provisions	145	140	97
Total current liabilities	746	583	529
Total shareholders' equity and liabilities	3 412	3 010	2 788

Group's changes in shareholders' equity

	30 June	30 June	31 Dec.
MSEK	2010	2009	2009
Opening shareholders' equity	1 217	1 157	1 157
Comprehensive income	155	17	59
Dividend	-27	-	-
Option premium	-	-	1
Expenses in conjunction with stock listing	-	-	0
Closing shareholders' equity	1 345	1 174	1 217

Number of shares, trend

	Total number of Series A shares	Total number of Series 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 close of period	1 181 250	25 370 727	26 551 977

Incentive programme 2008/2011

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

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

The incentive programme did not give rise to any increase in the number of shares during 2010.

Group's cash flow statement

		Jan.-June	Full-year
MSEK	2010	2009	2009
Cash flow from operating activities before change in working capital	179	102	256
Utilisation of structural reserves	-8	-22	-37
Changes in working capital	-58	82	140
Cash flow from operating activities	113	162	359
Acquisitions	-341	-	-
Cash flow from other investing activities	-8	-18	-23
Dividend	-27	-	-
Cash flow from other financing activities	243	-162	-358
Change in cash and cash equivalents	-20	-18	-22
Cash and cash equivalents at 1 January	317	342	342
Exchange-rate differences in cash and cash equivalents	2	2	-3
Cash and cash equivalents at close of the period	299	326	317

Operating cash flow, Group

		Jan.-June	Full-year
MSEK	2010	2009	2009
Operating profit	203	100	261
Depreciation/amortisation	42	43	84
Change in working capital	-58	82	140
Investments	-8	-18	-23
Operating cash flow	179	207	462

Other key figures

	April-June		Jan.-June		Full-year	July 09-
	2010	2009	2010	2009	2009	June 10
Profit margin before tax, %	11.5	7.4	11.2	neg	5.4	11.4
Profit margin before tax, excl. items affecting comparability, %	11.5	7.4	11.2	6.5	9.1	11.4
Return on shareholders' equity, %			21.5	neg	8.6	20.9
Return on shareholders' equity, excl. items affecting comparability, %			21.5	10.0	14.5	20.0
Interest-coverage ratio, multiple			33.2	neg	7.1	25.9
Net debt, MSEK			1 048	975	760
Net debt ratio, multiple			0.8	0.8	0.6
Cash flow per share, SEK	2.41	5.91	4.26	6.10	13.52	11.68
Cash flow per share before change in working capital, SEK	3.20	2.41	6.74	3.84	9.64	12.54

Quarterly data, Group

Sales per business area	2010		2009					July 09-
MSEK	Jan.- Mar.	Apr.- June	Jan.- Mar.	Apr.- June	July Sept.	Oct.- Dec.	Full year	June 10
HEXPOL Compounding	581	779	481	467	519	553	2 020	2 432
HEXPOL Engineered Products	169	187	166	140	132	150	588	638
Group total	750	966	647	607	651	703	2 608	3 070

Sales per geographic area	2010		2009					July 09-
MSEK	Jan.- Mar.	Apr.- June	Jan.- Mar.	Apr.- June	July Sept.	Oct.- Dec.	Full year	June 10
Europe	386	510	317	294	319	366	1 296	1 581
NAFTA	326	398	297	280	294	296	1 167	1 314
Asia	38	58	33	33	38	41	145	175
Group total	750	966	647	607	651	703	2 608	3 070

Operating profit per business area	2010		2009					July 09-
MSEK	Jan.- Mar.	Apr.- June	Jan.- Mar.	Apr.- June	July Sept.	Oct.- Dec.	Full year	June 10
HEXPOL Compounding	74	100	-41	49	74	73	155	321
HEXPOL Engineered Products	13	16	-11	5	7	7	8	43
Group total	87	116	-52	54	81	80	163	364

Operating profit per business area	2010		2009
excl. items affecting comparability								July 09-
MSEK	Jan.- Mar.	Apr.- June	Jan.- Mar.	Apr.- June	July Sept.	Oct.- Dec.	Full year	June 10
HEXPOL Compounding	74	100	39	49	74	69	231	317
HEXPOL Engineered Products	13	16	7	5	7	11	30	47
Group total	87	116	46	54	81	80	261	364

Operating margin per business area	2010		2009
excl. items affecting comparability								July 09-
%	Jan.- Mar.	Apr.- June	Jan.- Mar.	Apr.- June	July Sept.	Oct.- Dec.	Full year	June 10
HEXPOL Compounding	12.7	12.8	8.1	10.5	14.3	12.5	11.4	13.0
HEXPOL Engineered Products	7.7	8.6	4.2	3.6	5.3	7.3	5.1	7.4
Group total	11.7	12.0	7.1	8.9	12.4	11.4	10.0	11.9

Income statement, Parent Company

	Apr.-June	Jan. -June	Full-year
MSEK	2010	2009	2010	2009	2009
Net sales	6	8	12	16	31
Selling and administration costs, etc.	-10	-9	-18	-18	-33
Operating loss	-4	-1	-6	-2	-2
Financial income and expenses	-3	-4	-5	-12	-19
Loss before tax	-7	-5	-11	-14	-21
Tax	2	2	3	4	6
Net loss for the period	-5	-3	-8	-10	-15

Balance sheet, Parent Company

	30 June	30 June	31 Dec.
MSEK	2010	2009	2009
Total fixed assets	2 413	1 482	1 497
Total current receivables	696	588	565
Total assets	3 109	2 070	2 062
Total shareholders' equity	330	353	365
Total non-current liabilities	1 171	1 103	924
Total current liabilities	1 608	614	773
Total shareholders' equity and liabilities	3 109	2 070	2 062

Financial definitions

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