Presentation material - Trelleborg

trelleborg.com

Presentation material - Trelleborg

Trelleborg interim report January –

September 2010

Peter Nilsson, President & CEO

Bo Jacobsson, CFO

October 28, 2010

TRELLEBORG GROUP


Agenda




Highlights

Business areas

Financials

■ Outlook Q4 2010


Q&A

TRELLEBORG GROUP

2

October 28, 2010


Continued improved performance

Q3 2010

■ Increase in sales

■ Improved margins

■ Focus on long-term positioning

TRELLEBORG GROUP

3

October 28, 2010


Continued improved performance

Group financial highlights 1

Net sales

■ Organic sales: 15%

■ Currency: -5%

Earnings

■ Higher volumes

■ Positive effects from improved

structure

SEK M Q3 2010 Q3 2009 Change

Net sales 6,865 6,230 10%

EBITDA 2 861 681 26%

Margin, % 12.5 10.8 170bp

Operating profit 2 600 412 46%

Margin, % 8.7 6.5 220bp

Items affecting comparability -55 -31 -

Operating cash flow 439 936 -53%

Cash flow

■ Improved earnings

■ Capex still on low levels

TRELLEBORG GROUP

4

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


Good demand level

Demand

■ Continued improvement in General industry and Light vehicles

■ High activity level in Offshore oil/gas and Infrastructure

construction

■ Improvement in Agriculture

TRELLEBORG GROUP

5

October 28, 2010


Agenda




Highlights

Business areas

Financials

■ Outlook Q4 2010


Q&A

TRELLEBORG GROUP

6

October 28, 2010


Improved demand

Trelleborg Engineered Systems 1

■ Organic sales: 1%






Continued improvement in

general industry

High activity level, not yet fully

reflected in sales, in project

related business

Improved cost structure

Action programs ongoing

Cash flow affected by project

related business

SEK M Q3 2010 Q3 2009 Change

Net sales 2,640 2,740 4%

EBITDA 2 341 325 5%

Margin, % 12.9 11.8 110bp

Operating profit 2 256 236 8%

Margin, % 9.7 8.5 120bp

Items affecting comparability -44 -11 -

Operating cash flow 208 476 -56%

TRELLEBORG GROUP

7

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


Continued favorable light vehicle production

Trelleborg Automotive 1

■ Organic sales: 19%





Continued favorable light vehicle

production

Geographical differences

Continuous efforts to mitigate

increasing raw material prices

Action programs ongoing

SEK M Q3 2010 Q3 2009 Change

Net sales 2,061 1,800 15%

EBITDA 2 191 164 16%

Margin, % 9.1 8.9 20bp

Operating profit 2 95 65 46%

Margin, % 4.4 3.4 100bp

Items affecting comparability -1 -2 -

Operating cash flow -29 176 -

TRELLEBORG GROUP

8

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


Continued increase in demand

Trelleborg Sealing Solutions 1

■ Organic sales: 41%







Continued improvement in

general industry

Continued favorable light vehicle

production

Demand in aerospace stabilizing

Good capacity utilization

Improved cost structure

Strong cash flow

SEK M Q3 2010 Q3 2009 Change

Net sales 1,477 1,104 34%

EBITDA 2 292 149 96%

Margin, % 19.8 13.5 630bp

Operating profit 2 238 94 153%

Margin, % 16.1 8.6 750bp

Items affecting comparability -9 -10 -

Operating cash flow 309 240 29%

TRELLEBORG GROUP

9

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


Strong demand in industrial tire market

Trelleborg Wheel Systems 1

■ Organic sales: 22%






Improvement in demand from

agriculture OEM

Strong demand in industrial tire

market

Continuous efforts to mitigate

increasing raw material prices

Expanded Sri Lanka facility

inaugurated

Cash flow affected by increased

activity level

SEK M Q3 2010 Q3 2009 Change

Net sales 732 630 16%

EBITDA 2 101 75 35%

Margin, % 13.8 11.9 190bp

Operating profit 2 77 52 48%

Margin, % 10.5 8.2 230bp

Items affecting comparability -1 -8 -

Operating cash flow 25 124 -80%

TRELLEBORG GROUP

10

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


Agenda




Highlights

Business areas

Financials

■ Outlook Q4 2010


Q&A

TRELLEBORG GROUP

11

October 28, 2010


Continued improved performance

Financial highlights Q3 2010 1

Key ratios, SEK M Q3 2010 Q3 2009 Change

Net sales 6,865 6,230 10%

Operating key ratios,

SEK M

Items affecting

comparability

Q3 2010 Q3 2009 Change

-55 -31 -

Operating profit 545 381 43%

Operating profit 2 600 412 46%

Profit for the period 355 235 51%

Operating margin, % 2 8.7 6.5 220bp

Earnings per share, SEK 1.30 0.90 44%

EBITDA margin, % 2 12.5 10.8 170bp

Free cash flow 252 607 -58%

Earnings per share, SEK 2 1.45 1.00 45%

Debt / Equity ratio, % 59 74 -

Operating cash flow 439 936 -53%

TRELLEBORG GROUP

12

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


Organic sales: 15%. Currency effects: -5%

Sales development 1

% Q3 2010 Q3 2009

%

40

Organic sales +15 -19

Structural change 0 -1

20

Currency -5 +7

Total +10 -13

0

-20

-40

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Organic Structure Currency Total

TRELLEBORG GROUP

13

October 28, 2010

Note:

1

Continuing operations


Improved demand

Group net sales R12M and by quarter 1 0

Net sales

SEK M

32000

28000

24000

20000

16000

12000

8000

4000

SEK M

8000

7000

6000

5000

4000

3000

2000

1000

0

Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10

Quarter (RHS)

R12M (LHS)

TRELLEBORG GROUP

14

October 28, 2010

Note:

1

Continuing operations


Margins at target level

Group EBITDA and margin R12M 1,2 0

EBITDA and margin

SEK M

3,500

%

14

3,000

12

2,500

10

2,000

8

1,500

6

1,000

4

500

2

0

Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10

EBITDA (LHS)

EBITDA margin (RHS)

TRELLEBORG GROUP

15

October 28, 2010

Note:

1

Continuing operations

2

Excl. items affecting comparability


- SEK 55 M in items affecting comparability

Items affecting comparability 1

SEK M Q3 2010 Q3 2009 Oct. 2009 – Sep. 2010 Full year 2009

Trelleborg Engineered Systems -44 -11 -231 -163

Trelleborg Automotive -1 -2 -35 -23

Trelleborg Sealing Solutions -9 -10 -69 -152

Trelleborg Wheel Systems -1 -8 -12 -16

Other - - -3 -

Total -55 -31 -350 -354




Previously announced and ongoing measures

■ SEK 60 M remaining

■ Mainly pertaining to Trelleborg Engineered Systems and primarily charged Q4 2010

■ Provision of SEK 242 M

New initiated measures

■ Related to Swedish operations in several Business Areas and Trelleborg Automotive in

Germany

■ Total cost estimated at SEK 165 M, timing of charge dependent on ongoing negotiations

SEK 260 M in estimated full-year 2010 earnings impact

TRELLEBORG GROUP

16

October 28, 2010

Note:

1

Continuing operations


Increase in sales affecting cash flow

Operating cash flow by quarter and R12M 1

SEK M

SEK M

1200

1000

800

600

400

200

0

-200

-400

Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10

3600

3000

2400

1800

1200

600

0

-600

-1200

Quarter (LHS)

R12M (RHS)

TRELLEBORG GROUP

17

October 28, 2010

Note:

1

Continuing operations


Solid capital structure

Net debt, equity and net gearing development

Financial position

SEK M

14000

%

140

12000

120

10000

100

8000

80

6000

60

4000

40

2000

20

0

Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10

0

Net debt (LHS) Total equity (LHS) D/E (RHS)

TRELLEBORG GROUP

18

October 28, 2010


Earnings per share 1,2 1.45

SEK

2.50

EPS

2.00

1.50

1.30

1.00

0.50

0.00

-0.50

-1.00

-2.85

Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10

R12M 1 : 7.40 7.30 7.80 7.55 5.55 4.35 2.65 2.25 3.20 3.70 4.70 5.20

R12M 1 : 5.30 5.70 6.15 5.95 1.90 0.85 -0.60 -0.55 2.20 2.65 3.90 4.30

EPS EPS excl. items affecting comparability

TRELLEBORG GROUP

19

October 28, 2010

Note:

1

Continuing operations

2

Share of net profit for the period attributable to the Parent divided by the average number of shares.

Following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33


Agenda




Highlights

Business areas

Financials

■ Outlook Q4 2010


Q&A

TRELLEBORG GROUP

20

October 28, 2010


Outlook Q4 2010

■ Overall, demand is expected to remain in line with or slightly

better than the third quarter of 2010, adjusted for seasonal

variations

TRELLEBORG GROUP

21

October 28, 2010


Continued improved performance

Q3 2010

■ Increase in sales

■ Improved margins

■ Focus on long-term positioning

TRELLEBORG GROUP

22

October 28, 2010


Agenda




Highlights

Business areas

Financials

■ Outlook Q4 2010


Q&A

TRELLEBORG GROUP

23

October 28, 2010


TRELLEBORG GROUP

www.trelleborg.com


November 24, 2010

Capital Markets Day

Program:

11:30 a.m. Lunch buffet

12:30 p.m. Presentations from CEO, CFO and Business Area

Presidents

Approx. The day will be concluded with dinner served at Berns

5:00 p.m. Salonger

Venue:

Berns Salonger, Berzelii Park (Näckströmsgatan 8), in Stockholm,

Sweden

TRELLEBORG GROUP

25

October 28, 2010


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 such expectations will prove

correct. Accordingly, results could differ materially from those

implied in the forward-looking statements as a result of, among

other factors, changes in economic, market and competitive

conditions, changes in the regulatory environment and other

government actions, fluctuations in exchange rates and other

factors

TRELLEBORG GROUP

26

October 28, 2010

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