Annual report 2011 - Trelleborg

OUR BUSINESS CONCEPT
PROFITABLE
GROWTH
Portfolio management
for leading positions
in selected segments
Trelleborg’s main strategy is to achieve
long-term and profi table growth by commanding
leading positions in selected
segments. The focus of the Group is on
organic growth and the target is 5 percent
over an economic cycle. Key drivers
include innovation and excellence – the
ambition to continuously improve. Acquisitions
complement our business and
can further increase the pace of growth.
Leading positions in
selected segments
Trelleborg has a structured methodology
for its growth strategy, which ensures
leading positions in selected segments
in global and regional markets. The
Group’s market positions and product
portfolio are continuously evaluated. We
select and focus on segments in which
the Group can attain leading positions
and which offer long-term growth in value.
As this work is carried out, the business
structure is continuously streamlined.
This methodology also ensures that
areas and segments that do not meet
profi tability criteria are phased out.
Organic growth
Trelleborg’s total sales increased 7 percent
during the year, while organic sales
rose 11 percent. Over the past fi ve years,
the Group has grown an average of 5
percent per year. Organic sales have
increased by about 3 percent per year.
Prioritized growth segments can be
found in offshore oil & gas, the aerospace
and chemicals industries, mines,
infrastructure, life science, biotechnology,
24 Annual Report 2011 Trelleborg AB
pharmaceutical production and food processing.
Priority areas have signifi cantly
increased their share of consolidated
sales over the past fi ve years.
Acquisitions and
divestments
Trelleborg continuously seeks acquisition
candidates that add technology, create
added value, support the build-up of
critical mass in attractive segments, have
solid organic growth potential or provide
consolidation opportunities.
The acquisitions made contributed
signifi cantly to shifting the focus of the
Group to high-growth countries outside
Western Europe and North America.
In 2011, six operations were acquired
with total sales of SEK 660 M and three
were divested with total sales of SEK
1,150 M.
The agreement to form a joint venture
between Trelleborg and German Freudenberg
represented a major strategic transaction.
When the company becomes a
reality, Trelleborg Automotive’s production
of antivibration products will be transferred
to the new company.
Acquisitions
Sales, SEK M
No. of
employees
PPL Polyurethane Products Ltd. (offshore oil & gas and infrastructure),
Trelleborg Engineered Systems
90 90
Watts Tyre Group (industrial tires), Trelleborg Wheel Systems 300 230
Subsidiary of US-based Main Industrial Tire LLC (agricultural tires
in Xingtai, Hebei, China), Trelleborg Wheel Systems
– 180
Veyance Technologies do Brasil Produtos de Engenharia Ltda
(oil hoses, offshore oil & gas), Trelleborg Engineered Systems
– 100
Silcotech Group (precision seals), Trelleborg Sealing Solutions 200 150
Bloch S.A. (60%) (industrial hoses), Trelleborg Engineered Systems 70 20
Total 660 770
Divestments
Roofi ng operation (Waterproofi ng),
Trelleborg Engineered Systems
900 230
Brake hose operation, Trelleborg Automotive 140 200
Gas spring operation, Trelleborg Automotive 110 110
Total 1,150 540
GRI: 4.8, Governance (EC), EN, LA, HR, SO, PR