HIGHLIGHTS JANUARY-MARCH 2020:

Increased sales and strong cash flow

• Sales increased 10 percent to 4,168 MSEK (3,805).
• Operating profit, excl. non-recurring items, increased to 587 MSEK (586).
• Operating margin, excl. non-recurring items, amounted to 14.1 percent (15.4).
• Profit after tax amounted to 405 MSEK (438).
• Earnings per share, excl. non-recurring items, increased 2 percent to 1.29 SEK (1.27). Earnings per share including these items amounted to 1.18 SEK (1.27).
• Operating cash flow increased to 527 MSEK (354).
• Non-recurring items, before tax, amounted to 50 MSEK (0).

"The first quarter 2020 showed sales of 4.167 MSEK and an adjusted operating profit of 587 MSEK.  The sales increased by 10 percent compared to the same period previous year, while the result was on the same level. We delivered a strong operating cash flow of 527 MSEK, an increase by 49 percent compared to the same period previous year, which further strengthens our financial position.

During the two first months in the quarter we saw limited impact from the Covid-19 pandemic in the world. However, during the month of March, the impact became more evident as, for example, the automotive industry largely shut down its production, not least in Europe and the US. We also saw that demand generally began to decline in other customer segments as well.

HEXPOLs experienced and decentralized organization shows its strength in situations like this with major and varied challenges. Every local unit acts fast and adapts to the conditions that apply to just them, both to be able to support our customers but also to secure our financial position. At the same time, all necessary processes and resources are coordinated centrally to benefit in the best possible way of our global position.

It is our belief that HEXPOLs combination of financial strength and decentralized organization gives us good conditions to get us through this in a good way."

Peter Rosén, Acting CEO & CFO