HEXPOL: Year-End Report 2014

Regulatory News:

HEXPOL (STO:HPOLB):

Fourth quarter 2014 – Another strong quarter – high acquisition activity

· Sales rose 21 per cent to 2,331 MSEK (1,923).

· Operating profit increased 19 per cent to 382 MSEK (321), excluding acquisition, integration and restructuring costs (Vigar). Including these costs, operating profit rose to 344 MSEK (321).

· Acquisition, integration and restructuring costs for the acquisition of Vigar were estimated to 38 MSEK.

· Operating margin amounted to 16.4 per cent (16.7), excluding acquisition, integration and restructuring costs (Vigar).

· Profit after tax amounted to 248 MSEK (254).

· Earnings per share amounted to 7.21 SEK (7.38).

· Operating cash flow increased to 517 MSEK (398).

· Acquisition of the business of VIGAR Rubber Compounding.

· Acquisition of the business in Portage Precision Polymers.

· Agreement signed to acquire RheTech Thermoplastic Compounding.

Full-year 2014 – Strong development - best year so far

· Sales rose 11 per cent to 8,919 MSEK (8,036).

· Operating profit increased 16 per cent to 1,456 MSEK (1,255).

· Operating margin improved to 16.3 per cent (15.6).

· Profit after tax rose 13 per cent to 1,048 MSEK (930).

· Earnings per share increased 13 per cent to 30.45 SEK (27.02).

· Operating cash flow rose to 1,676 MSEK (1,418).

· The Board of Directors proposes a dividend of 12.00 SEK per share (9.00), an increase by 33 per cent.

· High acquisition activity, four acquisitions within Polymer Compounding.

President’s comments

"The fourth quarter of 2014 was again a strong quarter for the HEXPOL Group. The volume development was again positive in all geographic regions and gratifying is a continued strong volume development in NAFTA. Group sales improved 21 per cent. Our operating profit improved by19 per cent and the operating cash flow continued to be very strong.

2014 was our best year so far with strong volume increases in all geographical regions and with strong earnings development. Our earnings per share increased with 13 per cent to 30.45 SEK (27.02). Our balance sheet is strong and, with net cash of 259 MSEK, we are well equipped for continued expansion.

Acquisition activities have been high during 2014. During the second half year, we made four acquisitions within our focus area Polymer Compounding. The acquisitions strengthens our market positions and gives us competences within new end user segments and materials."

Georg Brunstam, President and CEO

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 the 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 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 February 6, 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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