Interim report January­­-September 2013

Third quarter of 2013 - Another strong quarter

  · Sales rose to 2,039 MSEK (1,980).
  · Operating profit increased 16 per cent to 324 MSEK (280).
  · The operating margin improved to 15.9 per cent (14.1).
  · Profit after tax rose 21 per cent to 232 MSEK (192).
  · Earnings per share increased 21 per cent to 6.74 SEK (5.58).
  · Operating cash flow was strong and increased to 395 MSEK (295).

Jan-Sep 2013 - Continued strong earnings development, our best results to date

  · Sales amounted to 6,113 MSEK (6,243).
  · Operating profit increased 11 per cent to 934 MSEK (839).
  · The operating margin improved to 15.3 per cent (13.4).
  · Profit after tax rose 19 per cent to 676 MSEK (567).
  · Earnings per share increased 19 per cent to 19.64 SEK (16.47).
  · Operating cash flow was strong and increased to 1,020 MSEK (886).
  · The US rubber compounding company Robbins, which was acquired in November
2012, has been successfully integrated.

President’s comments

“The third quarter of 2013 was another strong quarter for the HEXPOL Group, our
best quarter to date in terms of earnings. Our earnings per share improved
significantly to 6.74 SEK (5.58), up 21 per cent. The operating margin improved
further to 15.9 per cent (14.1) and our operating profit increased 16 per cent
to 324 MSEK (280). Volumes improved both year-on-year and compared with the
preceding quarter, but sales were once again impacted by a price reduction for
our principal raw materials. Operating cash flow remained strong and increased
to 395 MSEK (295).

January-September 2013 was a period with a strong earnings development. Our
earnings per share increased 19 per cent to 19.64 SEK (16.47). During the year,
the US rubber compounding company Robbins was successfully integrated with a
better earnings development than plan. Our balance sheet is strong and, with a
net debt/equity multiple of 0.2 (0.3), we are well-equipped for continued
expansion.”

Georg Brunstam, President and CEO
For more information, please contact:

Georg Brunstam, President and CEO
Tel: +46 708 55 12 51

Karin Gunnarsson, Chief Financial Officer, Investor Relations Manager
Tel: +46 705 55 47 32
HEXPOL is a world-leading polymers group with strong global positions in
advanced rubber compounds (Compounding), gaskets for plate heat exchangers
(Gasket), and 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 and
engineering industries, the energy sector and the medical technology industry.
The Group is organised in two business areas, HEXPOL Compounding and HEXPOL
Engineered Products. The HEXPOL Group’s sales in 2012 amounted to 8,007 MSEK.
The HEXPOL Group has approximately 3,400 employees in ten countries. Further
information is available at www.hexpol.com.

This report may contain forward-looking statements. When used in this report,
words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “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 or experience could differ materially from the forward-looking
statements. HEXPOL disclaims any intention or obligation to update these forward
-looking statements.

This report consists of such 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 for publication on 24
October 2013, at 8:00 a.m. CET. 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.