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VALUE–GENERATING BUSINESS DEVELOPMENT<br />

Drivers for<br />

market presence<br />

The long-term global trends<br />

are challenging, but at the same<br />

time they create business<br />

opportunities.<br />

New business opportunities. By analyzing<br />

our business environment <strong>and</strong> trends,<br />

<strong>and</strong> maintaining a close dialog with<br />

customers, Trelleborg can leverage the<br />

drivers that exist in the medium to long<br />

term. There is also good potential to<br />

identify new business opportunities<br />

that could generate long-term <strong>and</strong><br />

sustainable growth.<br />

Global megatrends. Trelleborg evaluates<br />

aspects <strong>and</strong> relevant outcomes of global<br />

megatrends, such as the changed<br />

dynamic of the global economy, the<br />

interdependence between countries<br />

<strong>and</strong> markets, the increasing scarcity<br />

of natural resources <strong>and</strong> demographic<br />

changes. These <strong>and</strong> other factors<br />

influence how Trelleborg positions itself<br />

in the market.<br />

For example, high population growth<br />

in primarily developing markets is<br />

contributing to a healthy trend for<br />

different printing blanket solutions, <strong>and</strong><br />

future major investment requirements<br />

in energy <strong>and</strong> infrastructure – in both<br />

mature <strong>and</strong> emerging economies – will<br />

drive growth in the majority of Trelleborg’s<br />

market segments.<br />

Leading positions. Trelleborg has chosen<br />

to concentrate on high-growth segments<br />

where the Group has the best conditions<br />

for achieving favorable profitability. In<br />

these segments, Trelleborg is continuously<br />

striving for leading positions in<br />

global, regional <strong>and</strong> local markets. The<br />

strategy is to be among the top three<br />

players in terms of market share.<br />

The basis for Trelleborg’s positioning<br />

is partly the innovative <strong>and</strong> high-tech<br />

features of its products that provide<br />

value-added solutions for customers,<br />

but also Trelleborg’s level of service <strong>and</strong><br />

customer knowledge that provides a<br />

sense of security in the choice of<br />

supplier. The Group works actively on<br />

being ahead of customers in terms of<br />

Trends in Trelleborg’s market segments<br />

General industry, 38%*<br />

General industry<br />

High-growth geographic markets dem<strong>and</strong><br />

an increasing number of products <strong>and</strong><br />

more advanced solutions to satisfy their<br />

industrial expansion <strong>and</strong> development.<br />

Capital-intensive industry, 51%*<br />

Oil & gas, 13%<br />

Greater energy needs lead to major investments in new, more<br />

complex exploration projects in deep-sea environments (Brazil<br />

<strong>and</strong> <strong>We</strong>stern Africa) as well as more stringent maintenance<br />

(Mexican Gulf <strong>and</strong> the North Sea), which requires more<br />

advanced solutions <strong>and</strong> investments in LNG transportation.<br />

Transportation equipment, 13%<br />

Increasing flows of people <strong>and</strong> goods require more efficient<br />

transportation by rail, air, bus <strong>and</strong> truck as well as improved<br />

inventory management <strong>and</strong> transportation equipment<br />

combined with ever stricter environmental requirements.<br />

Agriculture, 10%<br />

Large-scale farming requires increased investments in large<br />

tractors <strong>and</strong> tires, in parallel with higher dem<strong>and</strong> that is<br />

catalyzed by a rapid mechanization of agriculture in highgrowth<br />

countries. The trend toward biofuels <strong>and</strong> more<br />

sustainable agriculture is driving dem<strong>and</strong> for more advanced<br />

products <strong>and</strong> solutions.<br />

Light vehicles, 11%*<br />

Light vehicles<br />

Globalization <strong>and</strong> consolidation at the<br />

customer level calls for increased geographic<br />

presence by sub-suppliers which,<br />

in combination with more rigorous<br />

environmental stipulations, drives the<br />

development of alternative fuels <strong>and</strong><br />

lighter/cheaper materials.<br />

Infrastructure construction, 9%<br />

Under-investment, a strong urbanization trend <strong>and</strong> the<br />

economic development of high-growth countries are driving<br />

requirements for new <strong>and</strong> improved infrastructure for such<br />

transport systems as road, rail <strong>and</strong> air travel as well as ports,<br />

tunnels, etc.<br />

Aerospace, 6%<br />

The upgrade of, <strong>and</strong> purchase of new, civil <strong>and</strong> commercial<br />

aircraft fleets due to increased traffic, particularly in highgrowth<br />

countries, as well as more fuel-efficient technology<br />

<strong>and</strong> more stringent environmental requirements are leading<br />

to lighter aircraft with a greater technological content.<br />

*) Share of the Trelleborg Group’s sales in 2015.<br />

32 Annual Report 2015 Trelleborg AB<br />

GRI: G4-8

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