Trelleborg Ab Class B · OMXSTO:TREL_B

Trelleborg Ab Class B — FY2005 Earnings Presentation

30 slides from Trelleborg Ab Class B's earnings presentation, Feb 15, 2006

  1. Slide 1: 2005 Full Year Report Update

    Welcome to 2005 Full Year Report Update February 15, 2006

  2. Slide 2: Group Highlights 2005

    Group Highlights 2005 d Sales increase of 5.5 % for the full year d Group Net Sales Full Year, 24,170 SEK M (22,912) d Group Net Sales in Q4 6,182 SEK M (5,529) d Group Organic Growth for the full year and Q4 was 3 % d Net profit slightly better than last year – in line with guidance d Net Profit fo

  3. Slide 3: EMU PMI vs Industrial Production

    EMU Purchasing managers index vs Ind. Production EMU PMI vs Industrial Production 8 70,0 7 67,5 6 65,0 5 62,5 4 60,0 Percent change y/y 3 57,5 2 55,0 Index 1 52,5 0 50,0 -1 47,5 -2 45,0 -3 42,5 -4 40,0 -5 37,5 97 98 99 00 01 02 03 04 05 SEAL DAMP Business Surveys, PMI, Manufacturing Sector, Total Eu

  4. Slide 4: US ISM purchasing managers index vs industrial production

    US: ISM purchasing managers index vs ind. production US Industrial Production and ISM 15,0 65,0 12,5 62,5 10,0 60,0 7,5 57,5 Percent change y/y 5,0 55,0 Index 2,5 52,5 0,0 50,0 -2,5 47,5 -5,0 45,0 -7,5 42,5 -10,0 40,0 SEAL 97 98 99 00 01 02 03 04 05 DAMP 0 Business Surveys, ISM Manufacturing, PMI to

  5. Slide 5: Q4 Light Vehicle production in Europe and N. America

    Q4 Light Vehicle production in Europe and N. America Light vehicles, Quarterly change YoY NA light vehicle production, thousand European light vehicle production, units thousand units 6,000 6,000 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 0 Q4’03 Q4’04 Q4’05 Q4’03 Q4’04 Q4’05 Q4 Y

  6. Slide 6: Good Growth within Prioritized Industrial Segments

    Good Growth within Prioritized Industrial Segments Trelleborg Sealing Solutions Q4 EBIT 160 SEK M (143) 2100 210 FY EBIT 703 SEK M (676)  Organic growth 2005: 1 %  Strong demand in industrial and aerospace 1800 180 segments  Continous focus on comfort and safety in 1500 150 Auto segments like fue

  7. Slide 7: Good Development in US, Brazil and Asia

    Good Development in US, Brazil and Asia Q4 net sales 2,480 SEK M (2,187) Trelleborg Automotive FY net sales 9,550 SEK M (9,182) 2500 250  Organic growth 2005: 1 % 2250 225  Good sales development in US and Brazil 2000 200  Lower volumes in certain European segments  Efficiency losses in Fluid &

  8. Slide 8: Good Sales and Profit Development for 2005

    Good Sales and Profit Development for 2005 Trelleborg Engineered Systems Q4 net sales 1,223 SEK M (1,051) FY net sales 4,549 SEK M (4,133) 1200 120  Organic growth 2005: 8 %  Generally good demand in most markets  Focus on selected segments in Industrial 900 90 Fluid Systems added to a positive r

  9. Slide 9: Strong Sales and Profit Growth in 2005

    Strong Sales and Profit Growth in 2005 Q4 net sales 732 SEK M (681) Trelleborg Wheel Systems FY net sales 3,023 SEK M (2,722) 800 80  Organic growth 2005: 9 %  Stable demand in Agri during 2005. TWS gained market shares. OE production 600 60 adjustments in Q4  Strong demand in Industrial Tires se

  10. Slide 10: Stable development with a strong finish of the year

    Stable development with a strong finish of the year Trelleborg Building Systems Q4 net sales 577 SEK M (546) 800 80 FY net sales 2,304 SEK M (2,257)  Organic growth 2005: 3 %  Strong demand in Scandinavian market  Strong sales in waterproofing, especially in 600 60 Denmark  Generally good develo

  11. Slide 11: Acquisitions since last report

    Acquisitions since last report Acqusitions in Q4 2005  Chase-Walton Elastomers Inc Trelleborg Sealing Solutions  Trelleborg Wuxi Trelleborg Automotive  Andre Structural Bearings Trelleborg Engineered Systems  Dunlop GRG Trelleborg Engineered Systems  Trelleborg Composite Hose Shangyu Company Lt

  12. Slide 12: ECS, Elastomer Compounding s.r.o

    ECS, Elastomer Compounding s.r.o  Remaining 70 percent acquired from Rado of Germany. Trelleborg has owned 30 percent of ECS since 1998. ECS’s mixing unit is located in Western Czech Republic  Produces rubber mixtures primarily for profile manufacturers  Annual sales approx SEK 75 M, 40 employees

  13. Slide 13: Acquisition of CRP Group activities

    Acquisition of CRP Group activities Trelleborg creates a world leading position in polymer based solutions for offshore oil & gas extraction projects in deep sea environments ▼ Purchase price: Approx. 950 MSEK ▼ 2005 Turnover of approx. 1,000 MSEK, 500 employees ▼ 3 production units in US, 2 in UK ▼

  14. Slide 14: CRP world-wide Locations

    CRP world-wide Locations SEAL DAMP PROTECT

  15. Slide 15: Key Market Segments & Products

    Key Market Segments & Products Defense Micro-Balloons Seismic Marine Industrial Marine Advanced Materials Telecoms Engineered Products Thermal Insulation Cable/Flowline Oil & Gas Drilling Protection Subsea SEAL DAMP PROTECT

  16. Slide 16: Total Production will Increase - Harder to Extract

    Total Production will Increase - Harder to Extract Increased Prices Open Up New Sources Gas & Deepwater - Prioritized growth segments for Trelleborg/CRP 50 Non-con Gas Gas 40 Liquid Gas Production, Globe/a Polar Oil 30 Deep Water Heavy 20 Regular 10 0 1930 1950 1970 1990 2010 2030 SEAL DAMP PROTECT

  17. Slide 17: Leading Solutions in Seismic Surveys

    Leading Solutions in Seismic Surveys Seismic Towed Array Top left to right: 2500 msw Autosub11, 1000 msw ADCP float Bottom left to right: 400 msw ”Tiburon” (MBARI), Sonargraphic Buoy SEAL DAMP Subsea ROV recovery PROTECT

  18. Slide 18: Leading Solutions in Drilling

    Leading Solutions in Drilling Drill Riser Joint VIV strakes Drill Riser Buoying Models Drill Riser Pipe Joint being deployed SEAL DAMP PROTECT

  19. Slide 19: Leading Solutions in Extraction/Production

    Leading Solutions in Extraction/Production Bend stiffener Bend Stiffener Uvatherm™ thermal insulation SEAL DAMP PROTECT

  20. Slide 20: Distributed Buoyancy Modules

    Distributed Buoyancy Modules SEAL DAMP PROTECT

  21. Slide 21: EPG Inc.

    EPG Inc.  140 employees, annual sales of approx SEK 170 M.  Two production units in Aurora, near Cleveland, Ohio, in the US.  Produces polymer sealing products such as extruded profiles (rubber and plastic) and pipe seals, primarily for the construction industry. EPG is a leader primarily in comm

  22. Slide 22: Proposal to be submitted to the AGM

    Proposal to be submitted to the AGM ▼ Proposed dividend The Board and CEO propose a cash dividend of SEK 5.50 (5.00). Proposed dividend, corresponding to a total of approx. SEK 497 M, entails about 43 % of net profit for 2005. ▼ Board members A nominations committee consisting of the Chairman of the

  23. Slide 23: Further Challenges in Raw Materials

    Further Challenges in Raw Materials Oil price development 00-06 70 Near term comments 60 ▼ Record high Natural Rubber 50 prices. 40 ▼ Unpredictability for polymers 30 in general. Present trend is up, but with mixed signals. 20 ▼ Varied picture for Metal 10 components: Q - 00 Q 00 Q - 00 Q 00 Q 01 Q

  24. Slide 24: Income Statement

    Income Statement Income Statements1) Group Oct - Dec Jan - Dec SEK M 2005 2004 2005 2004 Continuing operations Net sales 6 182 5 529 24 170 22 912 Cost of goods sold -4 566 -4 435 -17 665 -17 048 Gross profit 1 616 1 094 6 505 5 864 Selling expenses -534 -536 -2 077 -2 013 Administrative expenses -6

  25. Slide 25: Key operating ratios

    Key operating ratios Slightly better than LY – in line with guidance Operating key ratios Continuing operations, excluding restructuring costs and impairment losses Operating profit 409 416 1 779 1 795 Profit before tax 350 358 1 567 1 508 Profit for the period 293 284 1 177 1 122 1) Earnings per sh

  26. Slide 26: Cash Flow Report

    Cash Flow Report Trelleborg Group, SEK M Change Total cash flow EBITDA, Gross Fixed in excl. assoc. invest- assets working Jan - December companies ments sold capital 2005 2004 Trelleborg Automotive 967 -485 4 40 526 340 Trelleborg Sealing Solutions 904 -148 45 -91 710 579 Trelleborg Engineered Syst

  27. Slide 27: Q4 Earnings Per Share SEK 3.20 (3,15)

    Q4 Earnings Per Share SEK 3.20 (3,15) Earnings per share for continuing operations, Light Blue, and also excl. restructuring costs/impairment losses, Blue , SEK 5,00 3,90 3,90 4,00 3,40 3,40 3,50 3,20 3,25 3,15 3,10 3,10 3,2 3,2 3,05 3,00 2,70 2,70 2,55 2,65 2,00 1,00 0,00 -0,70 -1,00 Q4 Q1 Q2 Q3 Q4

  28. Slide 28: Proposed dividend 10 % up - 5.50 (5.00)

    Proposed dividend 10 % up - 5.50 (5.00) Earnings per share for continuing operations, Light Blue, and dividend per share, Blue , SEK 14.00 12.90 12.55 12.00 10.00 8.00 7.00 6.10 6.00 5.50 5.00 4.50 4.05 4.25 4.00 4.00 2.00 0.00 2001 2002 2003 2004 2005 Dividend/EPS* % 66 105 64 40 43 SEAL Group Divi

  29. Slide 29: Outlook for the first six month 2006

    Outlook for the first six month 2006 ▼ For the first half of 2006, continued market growth, in line with the second half of 2005, is expected in the Group’s seven principal markets. ▼ A high level of demand for natural rubber and continued volatility in oil prices affecting the pricing scenario for

  30. Slide 30: DAMP

    This interim report presentation is based on a financial report presented according to International Financial Reporting Standards (IFRS). Comparison figures has been compiled from January 1, 2004. More details can be found in the full Interim Report, pages 17-18 on www.trelleborg.com. Calendar Dist

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