Annual report 2011 - Trelleborg

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80 NOTES – GROUP Areas involving estimates and assumptions that may have a significant effect on the Group’s earnings and financial position include: • Impairment testing of goodwill and other assets: The impairment requirement for goodwill implies that goodwill is tested annually in conjunction with the year-end, or as soon as changes indicate that a risk of impairment exists, such as when the business climate changes or a decision is made on the divestment or closure of an operation. Impairment losses are recognized if the carrying amount exceeds the estimated value in use. See also Note 15. Goodwill represents approximately 73 percent of the Group’s equity. • Other PPE and intangible assets are recognized at cost, less accumulated depreciation and any impairments. The Group has no intangible assets, other than goodwill, with a non-finite useful life. Amortization and depreciation take place over the estimated useful life, down to the assessed residual value. The value is tested as soon as changed conditions show that a need for impairment has taken place. Value in use is measured as anticipated future discounted cash flow, primarily from the cash-generating unit to which the asset belongs, but in specific cases, also in relation to individual assets. Testing of the carrying amount of an asset also becomes necessary when a decision is taken to sell the asset. The asset is measured at the lower of the carrying amount and the fair value, less selling costs. Not including goodwill, PPE and intangible assets amount to approximately 48 percent of the Group’s equity. • Calculation of deferred tax assets and liabilities: Assessments are made to determine current and deferred tax assets and liabilities, particularly with regard to deferred tax assets. In this manner, an assessment is made of the probability that the deferred tax assets will be utilized for settlement against future taxable gains. The fair value of these future taxable gains may deviate, owing to the future business climate and earnings potential, or to changes in tax regulations. For further information, see Note 18. • Calculation of remuneration to employees: The value of pension obligations for defined-benefit pension plans is derived from actuarial calculations based on assumptions concerning discount rates, expected yield from plan assets, future salary increases, inflation and the demographic conditions. At year-end, the Group’s defined-benefit obligations amounted to SEK 534 M. As regards accounting policies, actuarial gains and losses in defined-benefit pension plans are only recognized in profit and loss in the amount they either exceed, or fall below, 10 percent of the higher of the present value of the definedbenefit pension obligation, valued at fair value, or of the fair value of the plan assets. Net unrecognized actuarial gains or losses amounted to a loss of SEK 263 M at year-end. • Calculations regarding legal disputes and contingent liabilities: The Group is involved in a number of disputes and legal proceedings within the framework of its operating activities. Management engages both external and internal expertise in these matters. According to assessments made, the Group is not involved in any legal disputes that could entail any major negative effect on the operations or on the financial position. For further information, refer the Risk management section on pages 28-33. Note 2 Segment reporting A description of the Group’s operating segments is presented on pages 8-15. Net sales and operating profit by business segment • Calculations of provisions for restructuring measures, other provisions and accrued expenses: The amount of provisions for restructuring is based on assumptions and estimations regarding the point in time and cost for future activities, such as the amount of severance payments or other obligations in connection with termination of employment. Calculations of this type of cost are based on the particular situation in the negotiations with the parties concerned. Cash-flow statements Cash-flow statements are prepared in accordance with the indirect method. Parent Company’s accounting policies The financial statements of the Parent Company have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board‘s recommendation RFR 2. Accounting for legal entities entails that, in its financial reporting, the Parent Company applies International Financial Reporting Standards (IFRS) that have been endorsed by the EU where this is possible within the framework of the Swedish Annual Accounts Act and with consideration of the link between accounting and taxation. This entails the following differences between accounting in the Parent Company and the Group: • The Parent Company recognizes its pension obligations in accordance with the Pension Obligations Vesting Act. Adjustments in accordance with IFRS are made at the Group level. • Group contributions made from the Parent Company to a subsidiary are recognized in profit and loss in the item Income from participations in Group companies. Group contributions that the Parent Company receives from subsidiaries are recognized in the Parent Company in the item Income from participations in Group companies. Tax on Group contributions is recognized in profit and loss. 2011 2010 Net sales Net sales External Internal Total Operating Of which, Of which, profit/ External Internal Total Operating Of which, Of which, profit/ sek m profit/loss items affecting loss in associated comparability companies profit/loss items affecting comparability loss in associated companies Trelleborg Engineered Systems 9,296 139 9,435 542 –86 9,645 150 9,795 745 –110 Trelleborg Automotive 9,316 44 9,360 417 –93 11 8,790 29 8,819 426 –98 14 Trelleborg Sealing Solutions 6,632 11 6,643 1,336 –24 5,771 12 5,783 854 –22 Trelleborg Wheel Systems 3,862 1 3,863 401 0 0 2,990 0 2,990 247 –16 Group items –265 –1 –236 –4 Elimination of inter-company sales –195 –195 –191 –191 Continuing operations 29,106 0 29,106 2,431 –204 11 27,196 0 27,196 2,036 –250 14 Discontinued operations Elimination of inter-company sales in 44 0 44 258 –6 1,582 2 1,584 –84 –2 –8 discontinued operations –2 –2 Trelleborg Group 29,150 0 29,150 2,689 –204 5 28,778 0 28,778 1,952 –252 6 Financial income 31 19 Financial expenses –240 –239 Income tax –642 –549 Net profit for the year 1,838 1,183 Annual Report 2011 Trelleborg AB
Assets and liabilities by business segment sek m Operating assets Operating liabilities Capital Of which in- employed vestment in associated companies 2011 2010 Capital expenditures Depreciation/amortization Impair- Operating ment cash flow losses Operating assets Operating liabilities Capital employed Of which investment in associated companies Capital expenditures Depreciation/amortization Impair- Operating ment cash flow losses Trelleborg Engineered Systems 8,693 1,965 6,728 3 352 311 4 267 8,324 2,288 6,036 3 248 330 3 722 Trelleborg Automotive 5,829 1,907 3,922 51 374 310 –2 242 5,651 1,912 3,739 38 284 360 45 642 Trelleborg Sealing Solutions 8,149 1,134 7,015 –3 236 189 1 1,252 7,584 1,039 6,545 –3 180 194 10 885 Trelleborg Wheel Systems 3,129 938 2,191 3 156 91 185 2,405 693 1,712 3 104 96 251 Group items 203 378 –175 17 9 –291 192 224 –32 6 10 –310 Provisions for items affecting comparability 107 –107 215 –215 Continuing operations 26,003 6,429 19,574 54 1,135 910 3 1,655 24,156 6,371 17,785 41 822 990 58 2,190 Discontinued operations 1 1 –45 0 9 14 12 119 Operations held for sale 433 127 306 5 8 10 64 Trelleborg Group 26,003 6,429 19,574 54 1,136 911 3 1,610 24,589 6,498 18,091 46 839 1,014 70 2,373 Net sales By geographical market/country sek m 2011 2010 Germany 4,068 3,627 France 2,476 2,216 UK 1,995 1,802 Sweden 1,662 1,406 Italy 1,051 1,033 Spain 1,011 961 Belgium 645 589 The Netherlands 636 581 Norway 629 661 Switzerland 463 398 Denmark 373 277 Finland 321 270 Other Western Europe 405 369 Total Western Europe 15,735 14,190 Poland 447 364 Czech Republic 343 293 Romania 272 153 Turkey 238 210 Rest of Europe 487 448 Total rest of Europe 1,787 1,468 US 4,556 4,819 Canada 570 570 Total North America 5,126 5,389 Brazil 1,240 1,369 Mexico 402 404 Other South and Central America 102 111 Total South and Central America 1,744 1,884 China 1,087 991 South Korea 944 647 Australia 540 427 Japan 447 417 India 493 418 Other markets 1,203 1,365 Total Asia and other markets 4,714 4,265 Continuing operations 29,106 27,196 Discontinued operations 44 1,582 Trelleborg Group Of which 29,150 28,778 sales of goods 29,079 28,646 services 71 132 In the translation of foreign subsidiaries, changes in exchange rates compared with 2010 had a negative impact on sales of 6 percent (neg: 7). Trends in key currencies were as follows: 2011 2010 Average rate Closing day rate Average rate Closing day rate EUR 9,0342 8,954 9,5377 9,0113 USD 6,4973 6,9247 7,2047 6,8038 GBP 10,4119 10,6831 11,1240 10,5538 Net sales External net sales by geographic market sek m 2011 2010 Western Europe 15,735 14,190 North America 5,126 5,389 Rest of the world 1) 8,245 7,617 Continuing operations 29,106 27,196 Discontinued operations 44 1,582 Trelleborg Group 29,150 28,778 1) Rest of the world consists of Rest of Europe, South and Central America and Asia and other markets. Assets by geographic market Operating assets Capital expenditures sek m 2011 2010 2011 2010 Western Europe 16,963 15,596 578 438 North America 4,773 4,538 112 104 Rest of the world 4,963 4,420 445 280 Eliminations –696 –398 Continuing operations 26,003 24,156 1,135 822 Discontinued operations – – 1 9 Assets held for sale – 433 – 8 Trelleborg Group 26,003 24,589 1,136 839 Note 3 Employees and employee benefits NOTES – GROUP Average number of employees 2011 2010 Women Men Total Women Men Total France 405 1,447 1,852 438 1,552 1,990 Sweden 619 1,153 1,772 571 1,241 1,812 UK 278 1,222 1,500 330 940 1,270 Italy 196 906 1,102 182 1,014 1,196 Germany 288 800 1,088 268 791 1,059 Spain 157 754 911 178 786 964 Malta 165 435 600 182 389 571 Other Western Europe 247 883 1,130 225 881 1,106 Total Western Europe 2,355 7,600 9,955 2,374 7,594 9,968 Poland 222 245 467 295 398 693 Rest of Europe 474 720 1,194 517 865 1,382 Total rest of Europe 696 965 1,661 812 1,263 2,075 US 859 2,155 3,014 906 2,123 3,029 Canada 3 19 22 4 13 17 Total North America 862 2,174 3,036 910 2,136 3,046 Brazil 126 872 998 141 911 1,052 Other South and Central America 231 343 574 220 253 473 Total South and Central America 357 1,215 1,572 361 1,164 1,525 China 489 1,002 1,491 368 700 1,068 India 54 763 817 44 688 732 Sri Lanka 29 705 734 28 628 656 Other markets 187 821 1,008 186 786 972 Total Asia and other markets 759 3,291 4,050 626 2,802 3,428 Total 5,029 15,245 20,274 5,083 14,959 20,042 Of which discontinued operations 3 14 17 325 743 1,068 The proportion of women is 18 percent (9) in executive management positions and 29 percent (29) on the Board of Directors. GRI: 2.5, LA1 Annual Report 2011 Trelleborg AB 81 cont.
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ANNUAL REPORT WE SEAL, DAMP AND PRO
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TRELLEBORG IN BRIEF GLOBAL LEADER I
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sek 29,106 m Demand was significant
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Trelleborg will be able to allocate
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FURTHER DEVELOPMENT OF ANTIVIBRATIO
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Continuing operations Net sales and
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KEY FIGURES Market position, no. 1-
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KEY FIGURES 2011 2010 Net sales, se
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KEY FIGURES Net sales and ROS* 2011
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KEY FIGURES 2011 2010 Net sales, se
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About the material’s properties N
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WE ARE GROWING IN PACE WITH GLOBALI
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INCREASED GLOBAL PRESENCE +11% Nort
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OUR FINANCIAL TARGETS Trelleborg sh
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EXCELLENCE - CONTINUOUS IMPROVEMENT
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Turcon® M12 is the name of a new p
Page 33 and 34: Moreover, because selected parts of
Page 35 and 36: The elevated risk level has been de
Page 37 and 38: Financial risks, cont. Maturity ter
Page 39 and 40: CORPORATE GOVERNANCE Trelleborg is
Page 41 and 42: Independence of the Board The Board
Page 43 and 44: Name Nina Udnes Tronstad Heléne Vi
Page 45 and 46: Name Maurizio Vischi Sören Anderss
Page 47 and 48: President and Group Management The
Page 49 and 50: Control staff function works in acc
Page 51 and 52: As part of the infrastructure proje
Page 53 and 54: TARGET INDICATORS OUTCOME AND PROGR
Page 55 and 56: GOVERNANCE AND CODE OF CONDUCT Gove
Page 57 and 58: ACTIVE STAKEHOLDER DIALOG Trellebor
Page 59 and 60: in the voluntary reporting process
Page 61 and 62: workplaces globally. Trelleborg’s
Page 63 and 64: RESPONSIBILITY FOR SOCIETY AND THE
Page 65 and 66: ASSURANCE REPORT Auditor’s Report
Page 67 and 68: Our finances ......................
Page 69 and 70: CONSOLIDATED INCOME STATEMENTS sek
Page 71 and 72: Operating profit In addition to dis
Page 73 and 74: Income statement per quarter Contin
Page 75 and 76: CONSOLIDATED BALANCE SHEETS Decembe
Page 77 and 78: COMMENTS ON THE CONSOLIDATED CASH-F
Page 79 and 80: Note 1 General information The Pare
Page 81 and 82: Dividend income Dividend income is
Page 83: loss. If the loan, and consequently
Page 87 and 88: Note 4 Auditor’s remuneration sek
Page 89 and 90: Note 15 Intangible assets Buildings
Page 91 and 92: Note 18 Deferred tax assets/tax lia
Page 93 and 94: Note 26 Equity Specification of oth
Page 95 and 96: At December 31, 2010 Assets at fair
Page 97 and 98: Note 36 Events after the closing da
Page 99 and 100: PARENT COMPANY, TRELLEBORG AB Chang
Page 101 and 102: Note 45 Property, plant and equipme
Page 103 and 104: Proposed treatment of unappropriate
Page 105 and 106: TEN-YEAR OVERVIEW Trelleborg Group
Page 107 and 108: Swedish and foreign ownership, base
Page 109 and 110: Spain Production: Burgos, Cascante,
Page 111 and 112: FINANCIAL DEFINITIONS AND GLOSSARY
Page 113 and 114: ADRESSES Head offices Trelleborg AB
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Annual report 2011 - Trelleborg

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