Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — FY2003 Earnings Presentation
25 slides from Trelleborg Ab Class B's earnings presentation, Feb 6, 2004
Slide 1: Welcome to Full Year Report Update
GROUP tÉäÅçãÉ=íç=cìää=vÉ~ê=oÉéçêí=réÇ~íÉ cÉÄêì~êó=SI=OMMQ 1
Slide 2: In summary - continued positive development for the group
få=ëìãã~êó=J ÅçåíáåìÉÇ=éçëáíáîÉ=ÇÉîÉäçéãÉåí=Ñçê=íÜÉ=Öêçìé GROUP Trelleborg Group Group net sales Net sales, adj. for comp. currencies/units, SEK M • 12 Month Sales 17,960 SEK M (17,630) 5 000 • Up 1,1 % compared to 12 Months 2002, 4 000 adjusted for comparable currencies/units 3 000 • Q4 Sales SEK M
Slide 3: European PMI index precedes industrial production
bìêçéÉ~å=fåÇ éêçÇ=Ñçääçïë=éìêÅÜ~ëÉêë=áåÇáÅ~íçê GROUP EMU Purchasing managers index vs Industrial Production 8 62,5 7 60,0 6 5 57,5 4 55,0 3 Percent Index 2 52,5 1 50,0 0 -1 47,5 -2 45,0 -3 -4 42,5 98 99 00 01 02 03 04 EMU Purchasing managers index, manufacturing, sa EMU Industrial production, total
Slide 4: US Purchasing managers confident
rp=mìêÅÜ~ëáåÖ=ã~å~ÖÉêë=ÅçåÑáÇÉåí GROUP USA ISM Purchasing managers index, vs Industrial Production 10,0 65,0 62,5 7,5 60,0 5,0 57,5 55,0 2,5 Percent Index 52,5 0,0 50,0 47,5 -2,5 45,0 -5,0 42,5 -7,5 40,0 92 93 94 95 96 97 98 99 00 01 02 03 04 USA ISM Purchasing managers index, sa USA IP total index,
Slide 5: Q4 sales up thanks to new products and improved demand
nQ=ë~äÉë=ìé=íÜ~åâë=íç=åÉï=éêçÇìÅíë=~åÇ=áãéêçîÉÇ=ÇÉã~åÇ SEALING GROUP SOLUTIONS Trelleborg Sealing Solutions • Q4 Net sales 1,332 SEK M. Up with Net sales, SEK M approx. 6 % compared to Q4 02 Quarterly 1 500 • Improved Q4 demand noted, particularly in Europe and certain industrial segments. • Good or
Slide 6: Q4 profits well in line with expectations
nQ=éêçÑáíë=ïÉää=áå=äáåÉ=ïáíÜ=ÉñéÉÅí~íáçåë SEALING GROUP SOLUTIONS Trelleborg Sealing Solutions • Q4 EBITA 127 SEK M were well in line EBITA, SEK M with expectations Quarterly 140 • During Autumn 2003 some 35 integration projects have been initiated 120 in purchasing, mixing, marketing, distribution
Slide 7: Positive effects from TSS acquisition
mçëáíáîÉ=ÉÑÑÉÅíë=Ñêçã=qpp=~Åèìáëáíáçå SEALING GROUP SOLUTIONS Trelleborg Sealing Solutions • Efforts to retrieve cost related synergies of 100 MSEK well under way • Other rationalization and efficiency programs defined • Trelleborg EPS (excl goodwill amortization) strengthened already from first day
Slide 8: Full-year sales in line with expectations in North America
cìääJóÉ~ê=ë~äÉë=áå=äáåÉ=ïáíÜ=ÉñéÉÅí~íáçåë=áå=kçêíÜ=^ãÉêáÅ~ AUTO GM OU RO TP IVE North America, Light vehicles, Q4 change YoY • Full-year sales of 16.6 mn units in line with NA light vehicle production, thousand units expectations. 5 000 • Reduction of inventories of 100 000 units in the course of th
Slide 9: Close to flat car sales in Europe
`äçëÉ=íç=Ñä~í=Å~ê=ë~äÉë=áå=bìêçéÉ A U TGORM OOU TP I V E Western Europe, Light vehicles, Q4 change YoY • Manufacturers continue to counter the Light vehicle production, thousand units weak economic situation by aggressive 5 000 marketing. • The year had a surge in demand for 4 000 small segment cars
Slide 10: Increased volumes in Europe/Asia compensates for US drop
fåÅêÉ~ëÉÇ=îçäìãÉë=áå=bìêçéÉL^ëá~=ÅçãéÉåë~íÉë=Ñçê=rp=Çêçé A U TGORMOOUTPI V E Trelleborg Automotive • 12 Months Net sales 8,721 SEK M Net sales, SEK M (9,297). Currency adjusted sales In line Quarterly R12 (red line) 3 000 10 000 with previous year. • Increased sales in Europe 2 500 • Increased marke
Slide 11: Profits up through structural measures and European sales
mêçÑáíë=ìé=íÜêçìÖÜ=ëíêìÅíìê~ä=ãÉ~ëìêÉë=~åÇ=bìêçéÉ~å=p~äÉë A U TGORMOOUTPI V E Trelleborg Automotive • 12 months EBITA increased to 761 SEK M EBITA, SEK M (715) Quarterly R12 (red line) 300 850 • Expenses for Development activated to a value of 65 MSEK (30) 250 • Positive impact from successful effic
Slide 12: Weak European Agri market continues to hurt
tÉ~â=bìêçéÉ~å=^Öêá ã~êâÉí=ÅçåíáåìÉë=íç=Üìêí WHEEL GROUP Trelleborg Wheel Systems SYSTEMS • 12 Months Net sales 2,704 SEK M Net sales, SEK M (2,764). Currency adjusted sales rose Quarterly R12 (red line) 800 3 000 with nearly 3 % • Continued weak demand for farm tires 2 500 in the European aftermarke
Slide 13: Weak last quarter
tÉ~â=ä~ëí=èì~êíÉê WHEEL GROUP Trelleborg Wheel Systems SYSTEMS • 12 months EBITA 145 SEK M (146) EBITA, SEK M • Translation effects -12 MSEK Quarterly R12 (red line) 50 200 • Negative impact from weaker European market in Q4 40 • Increased raw material prices not fully 150 compensated for • Producti
Slide 14: Adjusted sales up with 2% for the full year
^ÇàìëíÉÇ=p~äÉë=ìé=ïáíÜ=O=B=Ñçê=íÜÉ=Ñìää=óÉ~ê E N G I N EE R E D GROUP Trelleborg Engineered Systems SYSTEMS • 12 Months Net sales increased to 3,548 Net sales, SEK M SEK M (3,522). Currency adjusted Quarterly R12 (red line) 1 000 4 000 sales rose with 2 % • Strong sales development in project 3 500
Slide 15: Improved key figures fourth year in a row
fãéêçîÉÇ=âÉó=ÑáÖìêÉë=ÑçìêíÜ=óÉ~ê=áå==êçï E N G I N EE R E D GROUP Trelleborg Engineered Systems SYSTEMS • 12 months EBITA increased to 233 EBITA, SEK M SEK M (217), up 7% Quarterly R12 (red line) 60 250 • Main drivers include –Increased productivity 50 –Restructuring 200 –Acquisitions 40 • Q4 EBITA
Slide 16: Recovery of sales volumes due to market efforts
oÉÅçîÉêó=çÑ=ë~äÉë=îçäìãÉë=ÇìÉ=íç=ã~êâÉí=ÉÑÑçêíë BUILDING GROUP Trelleborg Building Systems SYSTEMS • 12 Months Net sales 1,931 SEK M Net sales, SEK M (1,880). Currency adjusted sales Quarterly R12 (red line) 600 2 000 increased with 4 % • Continuously weak demand in 500 Sweden and Germany. Rest of E
Slide 17: Strong Q4 thanks to marketing efforts and acquisitions
píêçåÖ=nQ=íÜ~åâë=íç=ã~êâÉíáåÖ=ÉÑÑçêíë=~åÇ=~Åèìáëáíáçåë BUILDING GROUP Trelleborg Building Systems SYSTEMS • 12 months EBITA 174 SEK M (171) EBITA, SEK M • Q4 EBITA 42 SEK M (31) Quarterly R12 (red line) 80 200 • Main drivers: - Restructuring & production efficiency - Marketing efforts 60 150 - Produ
Slide 18: Comments to Full Year Report
`çããÉåíë íç=cìää=vÉ~ê oÉéçêí GROUP •Holdings in Boliden AB divested •Full year contribution from Trenor 156 MSEK (106) – Book value of shares 353 MSEK – Good results and strong cash flow despite disappointing underliying markets – Positive effect from margin improving actions in Ahlsell •272 500 sha
Slide 19: Board Proposals to AGM
_ç~êÇ=mêçéçë~äë íç=^dj GROUP •Dividend proposed to be 4.50 SEK (4.25) – The proposed dividend, totally 404 MSEK, corresponds to approx. 58 % of net profits. •New Board Members - Claes Lindqvist, Höganäs and Heléne Bergquist, Electrolux – Dirdrik Normark (elected 1994) and Ann-Christine Alebertsson (
Slide 20: Trelleborg Group - Income Statements
qêÉääÉÄçêÖ=dêçìé=Ó fåÅçãÉ=pí~íÉãÉåíë GROUP Income Statements Group Oct - Dec Full year SEK M 2003 2002 2003 2002 Net sales 5 351 4 114 17 960 17 630 Cost of goods sold -3 939 -3 182 -13 672 -13 762 Gross profit 1 412 932 4 288 3 868 Selling, administration and R&D costs -1 150 -762 -3 448 -3 145 Ite
Slide 21: Operating cash flow
léÉê~íáåÖ=Å~ëÜ=Ñäçï GROUP Trelleborg Group, SEK M Operating result, Depre- Change Total cash flow excl. assoc. ciations, Goodwill Gross Fixed in Jan - Jan - companies & items excl. depre- invest- assets working Dec Dec affecting. comp. goodwill ciation ments sold capital 2003 2002 Trelleborg Automot
Slide 22: Q4 EPS excl goodwill depr. up 54% to 3.70 SEK
nQ=bmp=ÉñÅä=ÖççÇïáää=ÇÉéêK=ìé=RQ=B===J PKTM=pbh=EOKQMF GROUP Earnings per share, excluding non-comparable items, Blue and also excl goodwill depreciation, Turqois, SEK 4,00 3.70 3,50 3,00 2.65 2.60 2.40 2.50 2,50 2.35 2.20 2.05 2.00 1.95 2.00 1.95 2,00 1.85 1.60 1.55 1.45 1,50 1,00 0,50 0,00 Q1 Q2 Q
Slide 23: Forecasts expects IP growth in 2004 and 2005
cçêÉÅ~ëíë=ÉñéÉÅíë=fm=ÖêçïíÜ=áå=OMMQ=~åÇ=OMMRÁ GR G RO OUUP P Industrial Production; Selected developed and developing countries; 2003A-2005F Developed countries Developing countries Percentage change Percentage change 2003A -0.2 2003A 0.4 Brazil 2004F 5.0 UK 2004F 3.3 2005F 3.9 2005F 3.0 2003A 5.3 C
Slide 24: Gradually improved Market Conditions
dê~Çì~ääó=áãéêçîÉÇ=j~êâÉí=`çåÇáíáçåë GROUP Outlook • Gradual improvement of market conditions expected during 2004 • Efficiency programs are underway or under evalution to facilitate margin improvements earlier communicated: • Effects from Automotive North America – partly -04, full -05 • Effects fr
Slide 25: Trelleborg Group balance sheet
qêÉääÉÄçêÖ=dêçìé GROUP Group Dec 31 Dec 31 SEK M 2003 2002 Intangible fixed assets 7 154 2 657 Tangible fixed assets 5 778 4 977 Financial fixed assets 1 210 1 108 Inventories 2 715 2 082 Receivables 5 000 4 091 Liquid funds 999 485 Total assets 22 856 15 400 Shareholders' equity 7 452 7 284 Minorit