HEXPOL: Interim Report January-March 2015

First quarter 2015 – Very strong growth and strong margins

• Sales rose 38 per cent to 2,951 MSEK (2,131).
• Operating profit increased 36 per cent to 495 MSEK (364).
• Operating margin amounted to 16.8 per cent (17.1).
• Profit after tax increased 34 per cent to 352 MSEK (262).
• Earnings per share rose 34 per cent to 10.23 SEK (7.61).
• Operating cash flow increased to 480 MSEK (287).
• The acquisition of RheTech Thermoplastic Compounding completed.
• Integration of units acquired 2014/2015 (Kardoes, Vigar Rubber Compounding, Portage Precision Polymers and RheTech Thermoplastic Compounding) proceeded according to plan.
• The Board of Directors proposes the Annual General Meeting to resolve on a share split 10:1 so that each existing share is divided into ten shares.

President’s comments

"The first quarter of 2015 was a strong quarter for the HEXPOL Group – our best so far. The Group sales increased significantly, +38 per cent, and our operating profit also increased significantly, +36 per cent, while the operating cash flow remained strong, 480 MSEK. We had strong sales growth primarily thanks to our (in 2014 and 2015) acquired units, positive currency effects and improved volumes in Europe and Asia and stable volumes in NAFTA. Simultaneously, sales have been affected by lower prices for our principal raw materials, which have been lower than the previous quarter and the year-earlier period. We have continued to improve our market positions and the integration of the acquired units proceeded according to plan. Our financial position remains very strong and with a net debt of 232 MSEK, we are well equipped for continued expansion. At the beginning of the year, the acquisition of RheTech Thermoplastic Compounding, a leadingprovider of thermoplastic compounds, was finalized and the business has developed according to plan.”

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 polymer 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 medical equipment manufacturers. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2014 amounted to 8,919 MSEK. The HEXPOL Group has approximately 3,900 employees in eleven 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”, "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 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 May 4, 2015, at 12:00 p.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..

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