STOCKHOLM–(BUSINESS WIRE)–Regulatory News:

HEXPOL (STO:HPOLB)

First quarter 2016 – Positive volume development and continued strong result

· Sales amounted to 2,757 MSEK (2,951).

· Operating profit increased to 497 MSEK (495).

· Operating margin increased to 18.0 per cent (16.8).

· Profit after tax increased to 355 MSEK (352).

· Earnings per share rose to 1.03 SEK (1.02).

· Operating cash flow amounted to 325 MSEK (480).

President’s comments

“The first quarter of 2016 was once again a strong quarter for the HEXPOL Group. The Group sales amounted to 2,757 MSEK and our operating profit increased to 497 MSEK, while the operating cash flow amounted to 325 MSEK. The volume development was once again positive for the Group, compared to the corresponding year-earlier period, with continued strong volumes to automotive related customers. Sales were negatively affected by considerably lower sales prices due to considerably lower raw material prices than the corresponding year-earlier period. Prices on our principal raw materials have also been lower than the fourth quarter 2015. Price pressure was continued strong during the quarter on all markets. Our financial position remains very strong and with a net cash of 714 MSEK, we are well equipped for further expansion. “

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 (Gaskets), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily systems suppliers to the global automotive and engineering industry, construction industry, the energy, oil and gas sector, medical equipment manufacturers and OEM manufacturers of plate heat exchangers and forklifts. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2015 amounted to 11,229 MSEK. The HEXPOL Group has approximately 3,900 employees in eleven countries. Further information is available at www.hexpol.com.

This press release consists of such information that HEXPOL AB (publ) 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 April 29, 2016.

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