HEXPOL

Interim / Quarterly Report • Jul 17, 2024

Published on July 17, 2024

APRIL – JUNE 2024

• o Sales amounted to 5,454 MSEK (5,727).
• o EBIT amounted to 911 MSEK (945).
• o EBIT-margin increased to 16.7 percent (16.5).
• o Profit after tax amounted to 654 MSEK (679).
• o Earnings per share amounted to 1.90 SEK (1.97).
• o Operating cash flow amounted to 926 MSEK (1,048).

JANUARY – JUNE 2024

• o Sales amounted to 10,766 MSEK (11,717).
• o EBIT amounted to 1,816 MSEK (1,891).
• o EBIT-margin increased to 16.9 percent (16.1).
• o Profit after tax amounted to 1,308 MSEK (1,347).
• o Earnings per share amounted to 3.80 SEK (3.91).
• o Operating cash flow amounted to 1,038 MSEK (1,641).

"Stable quarter with strong margins"

Klas Dahlberg, President and CEO

ABOUT HEXPOL

HEXPOL is a world-leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets and Seals), and wheels made of polymer materials for truck and castor wheel applications (Wheels). Customers are primarily system suppliers to the global automotive and engineering industry, building and construction industry and within sectors as transportation, energy, consumer and cable industry and manufacturers of medical equipment, plate heat exchangers and forklifts. The Group is organized in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group's sales in 2023 amounted to 22,046 MSEK and the Group has approximately 5,000 employees in fourteen countries.

Stable quarter with strong margins

The second quarter 2024 continues as in the previous quarter with good profitability and high margins. In the quarter, sales amounted to 5,454 MSEK (5,727) and EBIT amounted to 911 MSEK (945). At the same time, we strengthened the EBIT margin to 16.7 percent (16.5) driven by good product and price mix and delivered a return on capital employed of 18.9 percent (18.9).

Demand from our customers remains on the same level as we saw during the second half of 2023 and first quarter 2024 and sales prices are also stable. Sales to the various end customer segments such as automotive-related customers and building and construction also show small changes. Compared to the higher comparative figures during the second quarter 2023, demand is generally somewhat lower as well as sales prices driven by lower raw material prices.

We continue the focused execution of our solid business model with high customer focus combined with our ability to offer fast and stable deliveries, as well as implementation of price adjustments. This allows us to continue deliver strong results and high profitability. Another part of the business model is to continuously assess our production efficiency and cost levels. In line with that, we decided at the end of 2023 to consolidate our operations in California and close one of two factories and transfer these volumes to the remaining production unit. That work is progressing according to plan and is expected to be completed after the summer of 2024.

The acquisition strategy is set, and we work focused according to it and the companies we identified as interesting and possible acquisitions.

The work with sustainability is a high priority, not least with reducing our carbon footprint in order to achieve our goal of a reduction by 75 percent to 2025. Since the establishment of the target, we have reduced our carbon footprint with 57 percent, and we are well on our way to achieve our goal. The sustainability strategy includes a significant shift towards increased share of recycled materials, including acquisition of companies with a high portion of recycled material. In line with this, we are now also investing in our own capacity to recycle rubber. By the end of 2024, we expect to have this in place in Europe. The interest for recycled products continues to be high, not least in the automotive industry where we have many ongoing projects.

The uncertainty going forward remains high in terms of development of inflation, interest rates, and the global unrest. However, we believe that our strong customer focus in combination with our geographical closeness to our customers gives us continued opportunities to deal with the disruptions and further strengthen the market position. The strong business model in combination with a clear acquisition strategy and strong financial position give us good conditions for continued growth and acquisitions.

Sales 5,454 MSEK

EBIT 911 MSEK

EBIT-margin 16.7%

Klas Dahlberg President and CEO

Group Summary

Key figures	Apr-Jun Apr-Jun		Jan-Jun		Jan-Jun Full Year	Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Sales	5 454	5 727	10 766	11 717	22 046	21 095
EBITA, adjusted	944	976	1 883	1 951	3 787	3 719
EBITA-margin, adjusted, %	17,3	17,0	17,5	16,7	17,2	17,6
EBITA	944	976	1 883	1 951	3 704	3 636
EBITA-margin, %	17,3	17,0	17,5	16,7	16,8	17,2
EBIT, adjusted	911	945	1 816	1 891	3 659	3 584
EBIT-margin, adjusted, %	16,7	16,5	16,9	16,1	16,6	17,0
EBIT	911	945	1 816	1 891	3 576	3 501
EBIT-margin, %	16,7	16,5	16,9	16,1	16,2	16,6
Profit before tax	871	882	1 738	1 758	3 346	3 326
Profit after tax	654	679	1 308	1 347	2 524	2 485
Earnings per share, adjusted, SEK	1,90	1,97	3,80	3,91	7,51	7,40
Earnings per share, SEK	1,90	1,97	3,80	3,91	7,33	7,22
Equity/assets ratio, %			61	60	65
Return on capital employed, % R12			18,9	18,9	19,0
Operating cash flow	926	1 048	1 038	1 641	3 994	3 391

Group development

April - June 2024

Sales

The HEXPOL Group's sales amounted to 5,454 MSEK (5,727) during the second quarter 2024, a decrease by 5 percent compared with the corresponding quarter previous year. The sales were positively affected by currency effects of 53 MSEK. In addition to the positive currency effects, the sales were positively affected by acquisitions (Star ThermoPlastics) with 1 percent.

The HEXPOL Compounding business area's sales amounted to 5,062 MSEK (5,354) which corresponds to a decrease of 5 percent. Exchange rate changes affected the sales positively by 52 MSEK. Adjusted for currency effects, the sales amounted to 5,010 MSEK. In addition to the positive currency effects, the sales were positively affected by acquisitions (Star Thermoplastics) with 1 percent.

Demand from our customers remains on the same level as we saw during the second half of 2023 and first quarter 2024 and sales prices are also stable. Sales to the various end customer segments such as automotive-related customers and building and construction also show small changes. Compared to the higher comparison figures during the second quarter 2023, demand is generally somewhat lower.

In relation to the corresponding quarter previous year, the sales prices have decreased some driven by lower raw material prices. However, sequentially the sales- and raw material prices are essentially stable.

The HEXPOL Engineered Products sales increased during the quarter and amounted to 392 MSEK (373). The operations in all regions developed positively during the quarter.

From a geographical perspective the group sales increased in Asia by 10 percent compared to the corresponding quarter previous year. In America, the sales decreased by 7 percent, and in Europe by 4 percent, both compared with the corresponding quarter previous year.

Earnings

EBITA amounted to 944 MSEK (976), which meant a corresponding EBITA margin of 17.3 percent (17.0).

EBIT decreased by 4 percent to 911 MSEK (945) compared to the corresponding quarter previous year. Positive currency effects are included by 11 MSEK. The corresponding operating margin amounted to 16.7 percent (16.5). The higher EBIT margin is mainly driven by better product- and price mix.

The Group's net financial items amounted to an expense of 40 MSEK (expense 63). Profit before tax amounted to 871 MSEK (882), profit after tax amounted to 654 MSEK (679) and earnings per share 1.90 SEK (1.97).

Sales 5,454 MSEK

EBIT 911 MSEK

EBIT-margin 16.7%

January - June 2024

Sales

During the first half-year 2024, the HEXPOL Group's sales amounted to 10,766 MSEK (11,717), including positive currency effects of 48 MSEK. In addition to the positive currency effects, the sales were positively affected by acquisitions (Star ThermoPlastics) with 1 percent.

The HEXPOL Compounding business area's sales amounted to 10,001 MSEK (10,971) and decreased by 9 percent compared to the corresponding period 2023. The sales were positively affected by currency effects by 50 MSEK. Adjusted for these, the sales amounted to 9,951 MSEK. In addition to the positive currency effects, the sales were positively affected by acquisitions (Star Thermoplastics) with 1 percent.

Sales to automotive-related customers are down compared to the corresponding period 2023 affected by lower production rate within automotive industry in the markets where we are active. We also see lower sales to customers within building and construction compared to the corresponding period previous year in virtually all markets driven by lower construction. Also, when it comes to sales to consumer related end customer segments, it is lower compared to the first halfyear 2023 driven by generally lower demand.

In relation to the corresponding period previous year, the sales prices have decreased driven by lower raw material prices. However, sequentially the salesand raw material prices are essentially stable.

The HEXPOL Engineered Products sales increased during the first half-year and amounted to 765 MSEK (746). The operations in America and Asia developed positively during the period.

From a geographical perspective the group sales increased in Asia by 8 percent compared to the corresponding period previous year. In America, the sales decreased by 10 percent, and in Europe by 8 percent, both compared with the corresponding period previous year.

Earnings

EBITA amounted to 1,883 MSEK (1,951) during the first half-year, which meant a corresponding EBITA margin of 17.5 percent (16.7).

EBIT decreased by 4 percent to 1,816 MSEK (1,891) compared to the corresponding period previous year. Positive currency effects are included by 7 MSEK. The corresponding operating margin amounted to 16.9 percent (16.1). The higher EBIT margin is mainly driven by better product- and price mix.

The Group's net financial items amounted to an expense of 78 MSEK (expense 133). Profit before tax amounted to 1,738 MSEK (1,758), profit after tax amounted to 1,308 MSEK (1,347) and earnings per share 3.80 SEK (3.91).

Sales 10,766 MSEK

EBIT 1,816 MSEK

EBIT-margin 16.9%

Financial overview

Equity/assets ratio

The equity/assets ratio remains strong at 61 percent (60). The Group's total assets amounted to 23,789 MSEK (24,806). Net debt amounted to 2,918 MSEK (2,854) whereof 490 MSEK (423) relates to financial leasing liabilities according to IFRS 16, which gives a net debt/EBITDA of 0.72 (0.70).

The Group had the following major credit agreements with Nordic banks as per June 30:

• A credit agreement with a limit of 1,100 MSEK due in February 2027
• A credit agreement with a limit of 1,000 MSEK due in May 2027
• A credit agreement with a limit of 150 MEUR due in May 2027
• A credit agreement with a limit of 1,500 MSEK due in June 2026

The Group use commercial papers as part of the company's financing and as of June 30 they amounted to 2,630 MSEK. In accordance with IAS1, outstanding volumes are reported in the balance sheet as current liabilities, but since HEXPOL's bilateral credit agreements also function as back-up facilities for outstanding commercial papers, they are of a non-current nature.

Cash flow

The operating cash flow for the Group amounted to 926 MSEK (1,048) in the quarter and cash flow from operating activities amounted to 745 MSEK (906). For the first half-year the operating cash flow for the Group amounted to 1,038 MSEK (1,641), while cashflow from operating activities amounted to 912 MSEK (1,366) for the same period.

Investments, depreciation and amortisation

The Group's investments amounted to 139 MSEK (160) for the quarter. At the same time, depreciation, amortization and impairment amounted to 148 MSEK (130) whereof 22 MSEK (18) refers to leased assets according to IFRS 16. For the first half-year the investments amounted to 294 MSEK (289). For the same period depreciation, amortization and impairment amounted to 291 MSEK (260) whereof 43 MSEK (38) refers to leased assets according to IFRS 16.

Tax expenses

The Group's tax expenses amounted to 217 MSEK (203) for the second quarter 2024, which corresponds to a tax rate of 24.9 percent (23.0). For the first halfyear the Group's tax expenses amounted to 430 MSEK (411), which corresponds to a tax rate of 24.7 percent (23.4). The increased tax rate in the quarter and for the half-year is driven by larger profits in countries with higher tax rates.

Net debt/EBITDA 0.72

Operating cash flow 926 MSEK

Profitability

The return on average capital employed, R12, amounted to 18.9 percent (18.9). The return on shareholders' equity, R12, amounted to 16.4 percent (18.2).

Parent Company

The Parent Company's profit after tax for the second quarter amounted to 402 MSEK (197). Profit after tax for the first half-year amounted to 377 MSEK (169). Shareholders' equity amounted to 4,299 MSEK (4,539).

HEXPOL Compounding

April - June 2024

The sales decreased during the second quarter 2024 by 5 percent, compared to the corresponding quarter previous year. The sales amounted to 5,062 MSEK (5,354) including positive currency effects of 52 MSEK. Adjusted for these, the sales amounted to 5,010 MSEK. In addition to positive currency effects, the sales were positively affected by acquisitions (Star Thermoplastics) with 1 percent.

Demand from our customers remains on the same level as we saw during the second half of 2023 and first quarter 2024 and sales prices are also stable. Sales to the various end customer segments such as automotive-related customers and building and construction also show small changes. Compared to the higher comparison figures during the second quarter 2023, demand is generally somewhat lower.

In relation to the corresponding quarter previous year, the sales prices have decreased some driven by lower raw material prices. However, sequentially the sales- and raw material prices are essentially stable.

EBIT decreased during the quarter and amounted to 844 MSEK (883), while the corresponding operating margin increased and amounted to 16.7 percent (16.5). The higher EBIT margin is mainly driven by better product- and price mix.

January - June 2024

The sales for HEXPOL Compounding decreased during the period by 9 percent and amounted to 10,001 MSEK (10,971). Also, EBIT decreased during the period and amounted to 1,681 MSEK (1,756) at the same time as the corresponding operating margin increased to 16.8 percent (16.0). The higher EBIT margin is mainly driven by better product- and price mix.

Share of the Group's sales January - June 2024

About HEXPOL Compounding

The business area is one of the world's leading suppliers in development and manufacturing of advanced, high-quality polymer compounds for demanding applications and demanding end users. Customers are manufacturers of polymer products and components who impose rigorous demands on performance and global delivery capacity. The market is global, and the largest end-customer segments are the automotive and engineering industries, followed by the building and construction sector. Other key segments are transportation sector, energy sector, consumer sector, cable industries and manufacturers of medical equipment.

HEXPOL Compounding

				Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full Year		Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Sales	5 062	5 354	10 001	10 971	20 581	19 611
EBIT, adjusted	844	883	1 681	1 756	3 401	3 326
EBIT-margin, adjusted, %	16,7	16,5	16,8	16,0	16,5	17,0
EBIT	844	883	1 681	1 756	3 318	3 243

HEXPOL Engineered Products

April – June 2024

The business area's sales increased by 5 percent compared to the same quarter previous year and amounted to 392 MSEK (373). The sale includes positive currency effects of 1 MSEK. Adjusted for these, the sales amounted to 391 MSEK.

EBIT increased to 67 MSEK (62) which corresponds to an operating margin of 17.1 percent (16.6).

Wheels increased the sales compared to the same quarter previous year. The remaining product areas showed slightly lower sales for the same period. The operations in all regions developed positively during the quarter.

January – June 2024

The sales for HEXPOL Engineered products increased during the period by 3 percent to 765 MSEK (746).

EBIT are in line with the corresponding period previous year and amounted to 135 MSEK (135) and the corresponding operating margin amounted to 17.6 percent (18.1).

Share of the Group's sales January - June 2024

About HEXPOL Engineered Products

The business area has operations in a number of niche areas with strong global positions in gaskets for plate heat exchangers (Gaskets and Seals) and wheels of polymer materials for forklifts and material handling (Wheels). The market for gaskets and wheels is global. Gaskets customers include manufacturers of plate heat exchangers and wheel customers are manufacturers of forklifts and castor wheels.

HEXPOL Engineered Products

				Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full Year		Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Sales	392	373	765	746	1 465	1 484
EBIT	67	62	135	135	258	258
EBIT-margin, %	17,1	16,6	17,6	18,1	17,6	17,4

After the end of the period

Significant events

No significant events after the end of the period have been reported.

Other information

Risk factors

The Group's and Parent Company's business risks, risk management and management of financial risks are described in detail in the 2023 Annual Report. HEXPOL's global operation entails a risk that the company is affected by events in the global environment, beyond the company's direct control. Examples of this could be changed geopolitical situations or changes in the supply chain. It is high on the agenda of both the management and The Board to monitor events in the global environment in order to be able to act quickly in situations that can have a significant impact on HEXPOL.

Accounting policies

This half-year report has been prepared in accordance with IAS 34, Interim Financial Reporting. 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, Reporting for Legal Entities. The accounting and measurement policies as well as the assessment bases, applied in the 2023 Annual Report have also been applied in this half-year report. No new or revised IFRS that came into force 2024 have had any significant impact on the Group's financial reports.

Liabilities to minority shareholders are recognized as a financial liability measured at fair value with changes in value in profit or loss and are valued in accordance with Level 3.

Alternative Performance Measures (APMs)

ESMA (European Securities and Markets Authority) guidelines on alternative performance measures are effective from 2016. HEXPOL presents financial definitions and reconciliations of alternative performance measures in this report. HEXPOL presents alternative performance measures as these provide valuable additional information to investors and the company's management as they allow evaluation of the company's performance.

Personnel

The number of employees at the end of the period was 5,039 (5,012).

Ownership structure

HEXPOL AB (publ.) with Corporate Registration Number 556108-9631 is the Parent Company of the HEXPOL Group. HEXPOL's Class B shares are listed on Nasdaq Stockholm, Large Cap. HEXPOL AB had approximately 12,500 shareholders on June 30, 2024. The largest shareholder is Melker Schörling AB with 25 percent of the capital and 46 percent of the voting rights. The twenty largest shareholders own 74 percent of the capital and 81 percent of the voting rights.

Invitation to presentation of the report

A presentation of this report will be held through a webcasted conference call on July 17, 2024, at 11:00 a.m. CET. The presentation, as well as information concerning participations, is available at www.hexpol.com.

Number of employees 5,039

Financial calender

HEXPOL AB publish financial information on the following dates:

• Interim report January-September 2024 October 25, 2024

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

This half-year report January-June 2024 has not been audited by HEXPOL AB's auditors.

Board Assurance

The half-year report provides a fair view of the Parent Company's and the Group's operations, financial position and results. It also describes the significant risks and uncertainties facing the Parent Company and the companies included in the Group.

Malmö, Sweden July 17, 2024

HEXPOL AB (publ.)

Klas Dahlberg		Alf Göransson
President and CEO		Chairman of the Board
Malin Persson		Jan-Anders E. Månson
Kerstin Lindell		Nils-Johan Andersson
Märta Schörling Andreen		Henrik Elmin
For more information, please contact:
• Peter Rosén, Vice President and CFO Tel: +46 (0)40 25 46 60
Address:	Skeppsbron 3 SE-211 20 Malmö, Sweden
Corporate Registered Number: Tel:	556108–9631 +46 40-25 46 60

Website: www.hexpol.com

This report may contain forward-looking statements. When used in this report, words such as "anticipate", "believe", "estimate", "expect", "plan" and "project" are intended to identify forward-looking statements. Such statements could encompass risks and uncertainties pertaining to product demand, market acceptance, effects of economic conditions, impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of HEXPOL's management as of the date made with respect to future events but are subject to risks and uncertainties. While all of these forward-looking statements are based on estimates and assumptions made by HEXPOL's management and are believed to be reasonable, they are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements. HEXPOL disclaims any intention or obligation to update these forward-looking statements.

This information is information that HEXPOL AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 10:00 a.m. CET on July 17, 2024. 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.

Summary financial information

Condensed consolidated income statement

MSEK	Apr-Jun Apr-Jun 2024	2023	2024	2023	Jan-Jun Jan-Jun Full Year 2023	Jul 23- Jun 24
Sales	5 454	5 727	10 766	11 717	22 046	21 095
Cost of goods sold	-4 241	-4 466	-8 372	-9 209	-17 186	-16 349
Gross profit	1 213	1 261	2 394	2 508	4 860	4 746
Selling and administrative cost, etc.	-302	-316	-578	-617	-1 284	-1 245
Operating profit	911	945	1 816	1 891	3 576	3 501
Financial income and expenses	-40	-63	-78	-133	-230	-175
Profit before tax	871	882	1 738	1 758	3 346	3 326
Tax	-217	-203	-430	-411	-822	-841
Profit after tax	654	679	1 308	1 347	2 524	2 485
- of which, attributable to Parent Company shareholders	654	679	1 308	1 347	2 524	2 485
Earnings per share, SEK Shareholders' equity per share, SEK	1,90	1,97	3,80 42,27	3,91 43,11	7,33 42,32	7,22
Average number of shares, 000s	344 437	344 437	344 437	344 437	344 437	344 437
Depreciation, amortisation and impairment	-148	-130	-291	-260	-544	-575

Condensed statement of comprehensive income

	Apr-Jun Apr-Jun				Jan-Jun Jan-Jun Full Year	Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Profit after tax	654	679	1 308	1 347	2 524	2 485
Items that will not be reclassified to the income statement
Remeasurements of defined benefit pension plans	-	-	-	-	3	3
Items that may be reclassified to the income statement
Translation differences	-171	862	740	974	-473	-707
Comprehensive income	483	1 541	2 048	2 321	2 054	1 781
- of which, attributable to Parent Company's shareholders	483	1 541	2 048	2 321	2 054	1 781

Condensed consolidated balance sheet

	Jun 30	Jun 30	Dec 31
MSEK	2024	2023	2023
Intangible fixed assets	12 959	13 363	12 501
Tangible fixed assets	3 683	3 472	3 500
Financial fixed assets	5	7	5
Deferred tax asset	95	109	97
Total fixed assets	16 742	16 951	16 103
Inventories	2 218	2 492	2 092
Accounts receivable	3 415	3 530	2 575
Other receivables	301	442	552
Prepaid expenses and accrued income	116	117	82
Cash and cash equivalents	997	1 274	1 103
Total current assets	7 047	7 855	6 404
Total assets	23 789	24 806	22 507
Equity attributable to Parent Company's shareholders	14 558	14 848	14 577
Total shareholders' equity	14 558	14 848	14 577
Interest-bearing liabilities	1 155	1 660	685
Other liabilities	433	469	422
Provision for deferred tax	855	866	832
Provision for pensions	73	74	69
Total non-current liabilities	2 516	3 069	2 008
Interest-bearing liabilities	2 765	2 475	1 998
Accounts payable	2 936	3 247	2 737
Other liabilities	300	449	438
Accrued expenses, prepaid income, provisions	714	718	749
Total current liabilities	6 715	6 889	5 922
Total shareholders' equity and liabilities	23 789	24 806	22 507

Condensed consolidated changes in shareholders' equity

	Jun 30, 2024		Jun 30, 2023		Dec 31, 2023
MSEK	Attributable to Parent Company shareholders	Total equity	Attributable to Parent Company shareholders	Total equity	Attributable to Parent Company shareholders	Total equity
Opening equity	14 577	14 577	13 767	13 767	13 767	13 767
Comprehensive income	2 048	2 048	2 321	2 321	2 054	2 054
Dividend	-2 067	-2 067	-1 240	-1 240	-1 244	-1 244
Closing equity	14 558	14 558	14 848	14 848	14 577	14 577

Changes in number of shares

	Total number of Class A shares	Total number of Class B shares	Total number of shares
Number of shares at January 1	14 765 620	329 671 226	344 436 846
Number of shares at the end of the period		14 765 620 329 671 226 344 436 846

Condensed consolidated cash-flow statement

MSEK	2024	2023	2024	2023	Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full Year 2023	Jul 23- Jun 24
C ash flow from operating activities before changes in working capital	739	773	1 687	1 587	2 967	3 067
Changes in working capital	6	133	-775	-221	558	4
Cash flow from operating activities	745	906	912	1 366	3 525	3 071
Acquisitions Note 3	-	-	4	5	-211	-212
C ash flow from other investing activities	-139	-160	-294	-289	-684	-689
Cash flow from investing activities	-139	-160	-290	-284	-895	-901
Dividend	-2 070	-1 240	-2 070	-1 240	-1 244	-2 074
C ash flow from other financing activities	992	210	1 237	-258	-1 703	-208
Cash flow from financing activities	-1 078	-1 030	-833	-1 498	-2 947	-2 282
Change in cash and cash equivalents	-472	-284	-211	-416	-317	-112
Cash and cash equivalents at January 1	1 462	1 449	1 103	1 541	1 541	1 274
Exchange-rate differences in cash and cash equivalents	7	109	105	149	-121	-165
Cash and cash equivalents at the end of the period	997	1 274	997	1 274	1 103	997

Operating cash flow, Group

					Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full Year	Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Operating profit	911	945	1 816	1 891	3 576	3 501
Depreciation/amortisation/impairment	148	130	291	260	544	575
Change in working capital	6	133	-775	-221	558	4
Sale of fixed assets	0	0	0	0	0	0
Investments	-139	-160	-294	-289	-684	-689
Operating Cash flow	926	1 048	1 038	1 641	3 994	3 391

Other key figures, Group

	Apr-Jun Apr-Jun 2024	2023	Jan-Jun Jan-Jun 2024	2023	Full Year 2023	Jul 23- Jun 24
Profit margin before tax, %	16,0	15,4	16,1	15,0	15,2	15,8
Return on shareholders' equity, % R12			16,4	18,2	17,1
Interest-coverage ratio, multiple			16	17	15	15
Net debt, MSEK			-2 918	-2 854	-1 575
Sales growth adjusted for currency effects, %	-6	-5	-9	0	-6
Sales growth adjusted for currency effects and acquisitions, %	-6	-8	-9	-4	-9
Cash flow per share, SEK	2,16	2,63	2,65	3,97	10,23	8,91
Cash flow per share before change in working capital, SEK	2,15	2,24	4,90	4,61	8,61	8,90

Condensed income statement, Parent Company

					Full
			Apr-Jun Apr-Jun Jan-Jun Jan-Jun		Year	Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Sales	20	21	41	43	68	66
Administrative costs, etc.	-16	-28	-37	-58	-93	-72
Operating loss	4	-7	4	-15	-25	-6
Financial income and expenses	394	197	366	172	1 697	1 891
Profit after financial items	398	190	370	157	1 672	1 885
Profit before tax	398	190	370	157	1 672	1 885
Tax	4	7	7	12	-54	-59
Profit after tax	402	197	377	169	1 618	1 826

Condensed balance sheet, Parent company

	Jun 30	Jun 30	Dec 31
MSEK	2024	2023	2023
Fixed assets	13 579	13 578	13 246
Current assets	319	388	636
Total assets	13 898	13 966	13 882
Restricted shareholders' equity
Share capital	69	69	69
Total restricted shareholders' equity	69	69	69
Non-restricted shareholders' equity
Share premiun reserve	619	619	619
Accumulated earnings	3 234	3 682	3 682
Profit after tax	377	169	1 618
Total non-restricted shareholders' equity	4 230	4 470	5 919
Total shareholders' equity	4 299	4 539	5 988
Non-current liabilities	3 542	4 148	2 996
Current liabilities	6 057	5 279	4 898
Total shareholders' equity and liabilities	13 898	13 966	13 882

Notes to the financial reports

Note 1 Financial instrument per category and measurement level

Jun 30, 2024	Financial assets/liabilities measured at:
MSEK	Amortized costs	Fair value through profit or loss	Measurem. level	Total
Assets in the balance sheet
Non-current financial assets	5	-		5
Accounts receivable	3 415	-		3 415
C ash and cash equivalents	997	-		997
Total	4 417	-		4 417
Liabilities in the balance sheet
Interest-bearing non-current liabilities	800	-		800
Interest-bearing non-current lease liabilities	355	-		355
Liabilities to minority shareholders*		398	3	398
Interest-bearing current liabilities	2 630	-		2 630
Interest-bearing current lease liabilities	135	-		135
Accounts payable	2 936	-		2 936
Other liabilities	300	-		300
Accrued expenses, prepaid income, provisions	714	-		714
Total	7 870	398		8 268

Jun 30, 2023	Financial assets/liabilities measured at:
MSEK	Amortized costs	Fair value through profit or loss	Measurem. level	Total
Assets in the balance sheet
Non-current financial assets	7	-		7
Accounts receivable	3 530	-		3 530
C ash and cash equivalents	1 274	-		1 274
Total	4 811	-		4 811
Liabilities in the balance sheet
Interest-bearing non-current liabilities	1 341	-		1 341
Interest-bearing non-current lease liabilities Liabilities to minority shareholders*	319	- 430	3	319 430
Interest-bearing current liabilities	2 371	-		2 371
Interest-bearing current lease liabilities	104	-		104
Accounts payable	3 247	-		3 247
Other liabilities	449	-		449
Accrued expenses, prepaid income, provisions	718	-		718
Total	8 549	430		8 979

*Liabilities to minority shareholders are recogniced as other non-current liabilities.

MSEK	Apr-Jun 2024	Apr-Jun 2023	Jan-Jun 2024	Jan-Jun 2023	Full Year 2023
Administration costs	-	-	-	-	-46
Other operating income	-	-	-	-	0
Other operating expense	-	-	-	-	-37
Profit before tax	-	-	-	-	-83
Tax	-	-	-	-	19
Profit afer tax	-	-	-	-	-64

Note 2 Non-recurring items in the income statement

The expense for the full year 2023 is related to the restructuring carried out in California where mainly production is consolidated from two factories to one factory.

Note 3 Acquisition

Acquisition within TPE Compounding 2023

HEXPOL acquired 100% of the shares in the American TPE Compounder Star Thermoplastic Alloys and Rubbers Inc from Thomas A. Dieschbourg in November 2023. Star Thermoplastic has during the last 12 months delivered sales of some 17 MUSD with at profitability level below that of HEXPOL Group. Star Thermoplastics has its operations near Chicago Illinois, US at one well invested location with plenty of growth capacity and has some 30 employees. The main end customer segment are automotive, building & construction, medical, industrial, electronics and consumer. The acquisition price amounted to 26,5 MUSD on a cash and debt free basis and was funded by a combination of cash on hand and existing bank facilities.

Segment reporting and distribution of revenues

Sales per business area

	2024		2023			Full	2022 Jul 23-				Full
MSEK	Q1	Q2	Q1	Q2	Q3	Q4	Year	Jun 24	Q1	Q2	Q3	Q4	Year
HEXPOL Compounding	4 939	5 062	5 617	5 354	5 099	4 511	20 581	19 611 4 841 5 291 5 554 5 148					20 834
HEXPOL Engineered Products	373	392	373	373	362	357	1 465	1 484	332	363	367	347	1 409
Group total							5 312 5 454 5 990 5 727 5 461 4 868 22 046	21 095 5 173 5 654 5 921 5 495 22 243

Sales per geographic region

	2024			2023			Full	Jul 23-	2022			Full
MSEK	Q1	Q2	Q1	Q2	Q3	Q4	Year	Jun 24	Q1	Q2	Q3	Q4	Year
Europe	2 133	2 117	2 407	2 208	1 972	1 903	8 490		8 125 2 118 2 341 2 281 2 109				8 849
Americas	2 882	3 009	3 300	3 221	3 186	2 663	12 370	11 740 2 815 3 059 3 354 3 061					12 289
Asia	297	328	283	298	303	302	1 186	1 230	240	254	286	325	1 105
Group total							5 312 5 454 5 990 5 727 5 461 4 868 22 046	21 095 5 173 5 654 5 921 5 495 22 243

Sales per geographic region HEXPOL Compounding

	2024			2023			Full	Jul 23-	2022			Full
MSEK	Q1	Q2	Q1	Q2	Q3	Q4	Year	Jun 24	Q1	Q2	Q3	Q4	Year
Europe	1 977	1 951	2 231	2 050	1 837	1 756	7 874		7 521 1 963 2 168 2 123 1 958				8 212
Americas	2 755	2 888	3 189	3 104	3 058	2 533	11 884	11 234 2 715 2 950 3 237 2 958					11 860
Asia	207	223	197	200	204	222	823	856	163	173	194	232	762
Group total							4 939 5 062 5 617 5 354 5 099 4 511 20 581	19 611 4 841 5 291 5 554 5 148 20 834

Sales per geographic region HEXPOL Engineered Products

	2024		2023				Full Jul 23-			2022
MSEK	Q1	Q2	Q1	Q2	Q3	Q4	Year	Jun 24	Q1	Q2	Q3	Q4	Year
Europe	156	166	176	158	135	147	616	604	155	173	158	151	637
Americas	127	121	111	117	128	130	486	506	100	109	117	103	429
Asia	90	105	86	98	99	80	363	374	77	81	92	93	343
Group total	373	392	373	373	362	357	1 465	1 484	332	363	367	347	1 409

EBIT per business area

	2024			2023			Full Jul 23-			2022			Full
MSEK	Q1	Q2	Q1	Q2	Q3			Q4 Year * Jun 24	Q1	Q2	Q3		Q4* Year *
HEXPOL Compounding	837	844	873	883	862	783	3 401	3 326	721	759	765	737	2 982
HEXPOL Engineered Products	68	67	73	62	68	55	258	258	54	77	73	74	278
Group total	905	911	946	945	930	838	3 659	3 584	775	836	838	811	3 260

EBIT-margin per business area

	2024		2023				Full	Jul 23-	2022			Full
%	Q1	Q2	Q1	Q2	Q3			Q4 Year * Jun 24	Q1	Q2	Q3		Q4* Year *
HEXPOL Compounding	16,9	16,7	15,5	16,5	16,9	17,4	16,5	17,0	14,9	14,3	13,8	14,3	14,3
HEXPOL Engineered Products	18,2	17,1	19,6	16,6	18,8	15,4	17,6	17,4	16,3	21,2	19,9	21,3	19,7
Group total	17,0	16,7	15,8	16,5	17,0	17,2	16,6	17,0	15,0	14,8	14,2	14,8	14,7

*Adjusted EBIT for HEXPOL Compounding

Reconciliation alternative performance measures

Sales

		2023			Full		2022			Full
MSEK	2024 Q1	Q2	Q1	Q2	Q3	Q4	Year	Q1	Q2	Q3	Q4	Year
Sales	5 312	5 454	5 990	5 727	5 461	4 868	22 046	5 173	5 654	5 921	5 495	22 243
Currency effects	-5	53	463	383	247	31	1 124	363	516	709	681	2 269
Sales excluding currency effects	5 317	5 401	5 527	5 344	5 214		4 837 20 922	4 810	5 138	5 212		4 814 19 974
Acquisitions	36	39	338	128	124	100	690	242	400	249	308	1 199
Sales excluding currency effects and acquisitions	5 281	5 362	5 189	5 216	5 090		4 737 20 232	4 568	4 738	4 963		4 506 18 775

Sales growth

%	Apr-Jun 2024	2023	2024	Apr-Jun Jan-Jun Jan-Jun 2023	Full Year 2023
Sales growth excluding currency effects	-6	-5	-9	0	-6
Sales growth excluding currency effects and acquisitions	-6	-8	-9	-4	-9

EBITA, adjusted, %

					Full
	Apr-Jun	Apr-Jun Jan-Jun Jan-Jun				Year Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Sales	5 454	5 727	10 766	11 717	22 046	21 095
Operating profit	911	945	1 816	1 891	3 576	3 501
Non-recurring items	-	-	-	-	83	83
Amortisation and impairment of intangible assets	33	31	67	60	128	135
Total EBITA, adjusted	944	976	1 883	1 951	3 787	3 719
EBITA, adjusted, %	17,3	17,0	17,5	16,7	17,2	17,6

EBITA, %

					Full
	Apr-Jun	Apr-Jun Jan-Jun Jan-Jun				Year Jul 23-
MSEK	2024	2023	2024	2023	2023	Jun 24
Sales	5 454	5 727	10 766	11 717	22 046	21 095
Operating profit	911	945	1 816	1 891	3 576	3 501
Amortisation and impairment of intangible assets	33	31	67	60	128	135
Total EBITA	944	976	1 883	1 951	3 704	3 636
EBITA%	17,3	17,0	17,5	16,7	16,8	17,2

Capital employed

	2024		2023			2022
MSEK	Mar 31	Jun 30	Mar 31	Jun 30	Sep 30		Dec 31 Mar 31 Jun 30		Sep 30	31 Dec
Total assets	24 340	23 789	24 075	24 806	24 225	22 507		19 941 22 400	23 783	23 553
Provision for deferred tax	-878	-855	-795	-866	-853	-832	-612	-665	-705	-825
Accounts payable	-2 967	-2 936	-3 316	-3 247	-2 925	-2 737	-3 073	-3 479	-3 450	-3 111
Other liabilities	-309	-300	-375	-449	-405	-438	-457	-335	-354	-342
Accrued expenses, prepaid income, provisions	-604	-714	-598	-718	-776	-749	-546	-651	-777	-699
Total Group	19 582	18 984		18 991 19 526	19 266		17 751 15 253 17 270		18 497	18 576

Return on capital employed, R12

			Full
	Jun 30	Jun 30	Year
MSEK	2024	2023	2023
Average capital employed	18 896	18 898	18 884
Profit before tax	3 326	3 387	3 346
Interest expense	242	177	239
Total	3 568	3 564	3 585
Return on capital employed, %	18,9	18,9	19,0

Interest-coverage ratio, multiple

			Full
	Jan-Jun	Jan-Jun	Year	Jul 23-
MSEK	2024	2023	2023	Jun 24
Profit before tax	1 738	1 758	3 346	3 326
Interest expense	113	110	239	242
Total	1 851	1 868	3 585	3 568
Interest-coverage ratio, multiple	16	17	15	15

Shareholders' equity

	2024		2023			2022
MSEK	Mar 31	Jun 30	Mar 31	Jun 30	Sep 30	Dec 31	Mar 31 Jun 30		Sep 30	Dec 31
Shareholders' equity	16 142	14 558	14 547	14 848	15 217	14 577	12 449	12 069	13 684	13 767

Return on equity, R12

			Full
MSEK	Jun 30 2024	Jun 30 2023	Year 2023
Average shareholders' equity	15 124	14 212	14 797
Profit after tax	2 485	2 586	2 524
Return on equity, %	16,4	18,2	17,1

Net debt

			Full
	Jun 30	Jun 30	Year
MSEK	2024	2023	2023
Financial assets	5	7	5
C ash and cash equivalents	997	1 274	1 103
Non-current interest-bearing liabilities	-1 155	-1 660	-685
Current interest-bearing liabilities	-2 765	-2 475	-1 998
Net debt	-2 918	-2 854	-1 575

Net debt/EBITDA

			Full
MSEK	Jun 30 2024	Jun 30 2023	Year 2023
Net debt	-2 918	-2 854	-1 575
EBITDA, R12	4 076	4 093	4 120
Net debt/EBITDA, multiple	-0,72	-0,70	-0,38

Equity/assets ratio

			Full
	Jun 30	Jun 30	Year
MSEK	2024	2023	2023
Shareholders' equity	14 558	14 848	14 577
Total assets	23 789	24 806	22 507
Equity/assets ratio, %	61	60	65

Financial definitions

Average capital employed	Average of the last four quarters capital employed.
Average shareholders' equity	Average of the last four quarters shareholders' equity.
Capital employed	Total assets less deferred tax liabilities, accounts payable, other liabilities and accrued expenses,
Cash flow	prepaid income and provisions. Cash flow from operating activities.
Cash flow per share	Cash flow from operating activities in relation to the average number of shares outstanding.
Cash flow per share before changes in working capital	Cash flow from operating activities before changes in working capital in relation to the average number of shares outstanding.
Earnings per share	Profit after tax, in relation to the average number of shares outstanding.
Earnings per share after dilution	Profit after tax, in relation to the average number of shares outstanding adjusted for the dilution effect of warrants.
Earnings per share excl.	Profit after tax excluding non-recurring items, in relation to the average number of shares
adjusted EBIT	outstanding. Operating profit.
EBITA	Operating profit, excluding amortisation and impairment of intangible assets.
EBITA margin, %	Operating profit, excluding amortisation and impairment of intangible assets in relation to sales.
EBITA, adjusted	Operating profit excluding non-recurring items and amortisation and impairment of intangible assets.
EBITA margin, adjusted, %	Operating profit excluding non-recurring items and amortisation and impairment of intangible assets in relation to sales.
EBITDA	Operating profit excluding depreciation, amortisation and impairment of tangible and intangible assets.
Equity/assets ratio	Shareholders' equity in relation to total assets.
Interest-coverage ratio	Profit before tax plus interest expenses in relation to interest expenses.
Net debt/EBITDA	Non-current and current interest-bearing liabilities less cash and cash equivalents in relation to operating profit excluding depreciation, amortisation and impairment of tangible and intangible assets.
Net debt, net cash	Non-current and current interest-bearing liabilities less cash and cash equivalents.
Non-recurring items	Refers to integration- and restructuring costs and other material non-recurring items.
Operating cash flow	Operating profit excluding depreciation, amortisation and impairment of tangible and intangible assets, less investments incl. new leasing agreements and plus sales of tangible and intangible assets, and after changes in working capital.
Operating margin, %	Operating profit in relation to the sales.
Operating margin, adjusted, %	Operating profit excluding non-recurring items, in relation to the sales.
Other investing activities	Investments and sales of intangible and tangible assets.
Operating profit, adjusted	Operating profit excluding non-recurring items.
Profit margin before tax	Profit before tax in relation to the sales.
Return on capital employed, R12	Twelve months profit before tax plus twelve months interest expenses in relation to average capital employed.
Return on equity, R12	Twelve months profit after tax in relation to average shareholders' equity.
R12	Rolling twelve months average.
Sales growth excluding currency effects	Sales excluding currency effects compared to the sales for the corresponding year-earlier period.
Sales growth excluding currency effects and acquisitions	Sales excluding currency effects and acquisitions compared to the sales for the corresponding year earlier period.
Shareholders' equity per	Shareholders' equity in relation to the number of shares outstanding at the end of the period.