Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2011 Earnings Presentation
24 slides from Trelleborg Ab Class B's earnings presentation, Jul 20, 2011
Slide 1: Trelleborg interim report January – June 2011
Trelleborg interim report January – June 2011 Peter Nilsson, President & CEO Carolina Dybeck Happe, CFO July 20, 2011
Slide 2: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2011 ■ Q&A TRELLEBORG GROUP 2 July 20, 2011
Slide 3: Favorable demand in most market segments
Favorable demand in most market segments Q2 2011 highlights ■ Favorable demand in most market segments ■ Margins in line with target ■ Focus on long-term positioning TRELLEBORG GROUP 3 July 20, 2011
Slide 4: Group financial highlights Q2 2011
Favorable demand in most market segments Group financial highlights Q2 20111 Net sales SEK M Q2 2011 Q2 2010 Change ■ Organic sales: +13% Net sales 7,583 7,187 6% ■ Currency effects: -9% EBITDA2 973 955 2% Margin, % 12.8 13.2 -40bp Earnings Operating profit2 751 694 8% ■ Improved earnings Margin, %
Slide 5: Demand in Q2 2011
Favorable demand in most market segments Demand in Q2 2011 ■ Favorable demand in General industry, Light vehicles, Agriculture, Transportation equipment and Aerospace ■ Increasing activity level in Offshore oil/gas and Infrastructure construction TRELLEBORG GROUP 5 July 20, 2011
Slide 6: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2011 ■ Q&A TRELLEBORG GROUP 6 July 20, 2011
Slide 7: Trelleborg Engineered Systems
Favorable demand in general industry, improving order intake in project business Trelleborg Engineered Systems1 ■ Organic sales: +6% SEK M Q2 2011 Q2 2010 Change ■ Favorable demand in general Net sales 2,596 2,629 -1% industry EBITDA2 301 353 -15% ■ Improving order intake in project Margin, % 11.6 1
Slide 8: Trelleborg Automotive
Continued good light vehicle production levels Trelleborg Automotive1 ■ Organic sales: +13% SEK M Q2 2011 Q2 2010 Change ■ Continued good light vehicle Net sales 2,295 2,268 1% production levels EBITDA2 183 270 -32% ■ Efforts to mitigate increasing raw Margin, % 7.9 11.7 -380bp material prices ■ Ass
Slide 9: Trelleborg Sealing Solutions
Continued favorable demand in all areas Trelleborg Sealing Solutions1 ■ Organic sales: +19% SEK M Q2 2011 Q2 2010 Change ■ Continued favorable demand in Net sales 1,735 1,522 14% all areas EBITDA2 424 300 41% ■ Positive mix changes Margin, % 24.4 19.7 470bp ■ Good capacity utilization Operating prof
Slide 10: Trelleborg Wheel Systems
Improved demand in all areas Trelleborg Wheel Systems1 ■ Organic sales: +28% SEK M Q2 2011 Q2 2010 Change ■ Improved demand all areas Net sales 1,006 795 27% ■ Increased volumes in improved EBITDA2 132 82 61% structure Margin, % 13.1 10.3 280bp ■ Efforts to mitigate increasing raw material prices Op
Slide 11: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2011 ■ Q&A TRELLEBORG GROUP 11 July 20, 2011
Slide 12: Financial highlights Q2 2011
Favorable demand in most market segments Financial highlights Q2 20111 Operating key ratios, SEK Key ratios, SEK M Q2 2011 Q2 2010 Change Q2 2011 Q2 2010 Change M Items affecting Net sales 7,583 7,187 6% -45 -51 - comparability Operating profit 706 643 10% Operating profit2 751 694 8% Profit for the
Slide 13: Organic sales: +13%, Currency: -9%
Organic sales: +13% Currency: -9% Sales development1 % Q2 2011 Q2 2010 Full year 2010 % Organic sales +13 +22 +17 40 Structural change +2 0 0 20 Currency -9 -7 -7 Total +6 +15 +10 0 -20 -40 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08 08 09 09 09 09 10 10 10 10 11 11 Organic Structure Currency Total TRELL
Slide 14: Continued increase in sales
Continued increase in sales Group net sales R12M and by quarter1 Net sales SEK M SEK M 32000 8000 28000 7000 24000 6000 20000 5000 16000 4000 12000 3000 8000 2000 4000 1000 0 0 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Quarter (RHS) R12M (LHS) TRELLEBORG GROUP Note: 14
Slide 15: EBITDA margin in line with target
EBITDA margin in line with target Group EBITDA and margin R12M1,2 EBITDA and margin SEK M % 3500 14 3000 12 2500 10 2000 8 1500 6 1000 4 500 2 0 0 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 EBITDA (LHS) EBITDA margin (RHS) TRELLEBORG GROUP Note: 15 July 20, 2011 1 Contin
Slide 16: Sequential improvement in cash flow
Sequential improvement in cash flow Operating cash flow by quarter and R12M1 Operating cash flow SEK M SEK M 1000 3500 800 2800 600 2100 400 1400 200 700 0 0 -200 -700 -400 -1400 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Quarter (LHS) R12M (RHS) TRELLEBORG GROUP Note: 1
Slide 17: Investment grade credit metrics
Investment grade credit metrics Net debt / EBITDA and net gearing development Net debt / EBITDA Net gearing x % 10 150 8 120 6 90 4 60 2 30 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08 08 08 08 09 09 09 09 10 10 10 10 11 11 08 08 09 09 09 09 10 10 10 10 11 11
Slide 18: Continued improvement in EPS
Continued improvement in EPS Earnings per share1,2 EPS SEK 2.50 2.00 1.85 1.70 1.65 1.50 1.50 1.00 0.60 0.50 0.25 0.00 -0.50 -1.00 -3.00 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 R12M1: 7.00 4.95 3.80 2.15 1.85 2.70 3.25 4.30 4.85 5.35 5.70 5,90 R12M1: 5.40 1.30 0.25 -1
Slide 19: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2011 ■ Q&A TRELLEBORG GROUP 19 July 20, 2011
Slide 20: Outlook Q3 2011
Outlook Q3 2011 ■ In total, demand is expected to remain in line with the second quarter of 2011, adjusted for seasonal variations TRELLEBORG GROUP 20 July 20, 2011
Slide 21: Q2 2011 highlights
Favorable demand in most market segments Q2 2011 highlights ■ Favorable demand in most market segments ■ Margins in line with target ■ Focus on long-term positioning TRELLEBORG GROUP 21 July 20, 2011
Slide 22: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2011 ■ Q&A TRELLEBORG GROUP 22 July 20, 2011
Slide 23: www.trelleborg.com
www.trelleborg.com
Slide 24: Forward looking statement
Forward looking statement ■ This presentation contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that