Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — H1 2006 Earnings Presentation
23 slides from Trelleborg Ab Class B's earnings presentation, Jul 19, 2006
Slide 1: Welcome to 2006 Half Year Report Update
Welcome to 2006 Half Year Report Update July 19, 2006
Slide 2: Group Highlights
Group Highlights d H1 Sales increase of 16 % - organic growth 5.5 % d Group Net Sales Q2, 7,044 SEK M (6,348) and H1, 14,039 SEK M (12,142) d Group Organic Growth for Q2 2.5 % and for H1 5.5 % d Profit effected by higher raw material prices d Q2 Operating Profit 507 MSEK (538) (continuing operations
Slide 3: EMU Purchasing managers index vs Ind. Production
EMU Purchasing managers index vs Ind. Production SEAL DAMP PROTECT Source: Reuters EcoWin
Slide 4: USA: ISM purchasing managers index vs Ind. production
USA: ISM purchasing managers index vs Ind. production SEAL DAMP PROTECT Source: Reuters EcoWin
Slide 5: Q2 sales & production down in both N. America and Europe
Q2 sales & production down in both N. America and Europe GROUP Light vehicles, Quarterly change YoY NA light vehicle production, European light vehicle production, thousand 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 Q2’04 Q2’05 Q2’06 Q2’04 Q2’05
Slide 6: Sales in line with Q2 05, one-time negative effects
Sales in line with Q2 05, one-time negative effects Q2 EBIT 184 SEK M (206) Trelleborg Sealing Solutions R12 EBIT 704 SEK M (703 FY05) 2100 210 W Organic growth H1: 1 % W Good demand in industrial and aerospace 1800 180 segments. Slightly down in Auto segment W Q2 sales down in both N America and Eu
Slide 7: Good organic growth in several markets
Good organic growth in several markets Q2 net sales 2,509 SEK M (2,324) Trelleborg Automotive R12 net sales 9,569 SEK M (8,995 FY05) 3000 300 W Organic growth H1: 7.5 % W Q2 Sales increased in both AVS and 2500 250 Fluid&Acoustic segments W Results effected by W Raw material cost increases 2000 200
Slide 8: Strong development in most segments
Strong development in most segments Q2 net sales 1,692 SEK M (1,184) Trelleborg Engineered Systems R12 net sales 5,387 SEK M (4,438 FY05) 1600 160 W Organic growth H1: 13.5 % Q2 EBIT 149 SEK M (101) W Good and stable demand in most segments 1400 R12 EBIT 440 SEK M (344 FY05) 140 W Large number of pr
Slide 9: Strengthening position in Personal Protection Equipment
Strengthening position in Personal Protection Equipment Acquisition of UAB Trella, Lithuania Acquisition rationales are competitive production and safe-guarding of technology integration of our unique capabilities in coated fabrics W Agreement to acquire the protective suit operations, UAB Trella, f
Slide 10: Strengthening offshore portfolio within drilling
Strengthening offshore portfolio within drilling Acquisition of Mehren Rubber, Norway The acquisition fits the group’s continuing ambitions to expand in the offshore oil & gas business within drilling segment The products supplements current TES portfolio, with organizational synergies. W Approx. 30
Slide 11: Expansion of customized moulding components into Finland
Expansion of customized moulding components into Finland Acquisition of Mar-Con Group, Finland Rationales for the acquisition are sales presence in the Finnish market, know-how in TPE manufacturing and entering into new interesting sectors like electronics and telecom. W Key technology is the manufa
Slide 12: Stable sales and profit development
Stable sales and profit development Q2 net sales 820 SEK M (805) Trelleborg Wheel Systems R12 net sales 3,117 SEK M (3,023 FY05) 1000 100 W Organic growth H1: 2.5 % W Stable demand in Agricultural segment. 800 80 W Lower sales in Forestry segment W Increased sales for Industrial segment. Growth in N
Slide 13: Good demand in Scandinavian building segment
Good demand in Scandinavian building segment Trelleborg Building Systems Q2 net sales 695 SEK M (616) 800 R12 net sales 2,451 SEK M (2,304 FY05) 80 W Organic growth H1: 6.5 % W Continously strong demand in Scandinavian market. Signs of recovery in Germany 600 60 W Results effected by W Lower Sales i
Slide 14: Strengthening US position in sealing profiles
Strengthening US position in sealing profiles Acquisition of Kawneer Rubber & Plastics, US Together with EPG, acquired earlier this year, KRP creates an even stronger growth platform for TBS operations in North America: W A leading position in sealing profiles also in the United States W Increased a
Slide 15: Comments to Q2 report
Comments to Q2 report W Total book capital loss of Goodall divestment amounts to 76 MSEK W 45 MSEK taken in Q1, remaining 31 MSEK in Q2 W Adjustment in Q2 mainly due to recalculated deferred taxes with a limited cash effect W Sales process of Stockholm property inititated W Former warehouse of Bröde
Slide 16: Continously demanding raw material situation
Continously demanding raw material situation Examples of raw material price trends, Trelleborg purchases a variety of qualities Aluminium Hot rolled coil USD/Tonnes USD/Tonnes 3500 700 3000 600 2500 500 2000 400 1500 300 1000 200 3 03 4 4 4 04 5 5 5 05 6 6 00 00 00 00 00 00 00 00 00 20 20 20 /2 /2 /
Slide 17: Actions to meet increasing costs
Actions to meet increasing costs W The group prioritizes price increases to customers W Flexible raw material escalators in contracts (Automotive) W Reductions/delays of give-backs (Automotive) W Temporary effects on volumes W Increased coordination of group purchasing W Flexibility in sourcing W Ge
Slide 18: Income Statement
Income Statement Income Statements Group April - June Jan - June July 2005 - Full year SEK M 2006 2005 2006 2005 June 2006 2005 Continuing operations Net sales 6 983 6 185 13 790 11 827 25 472 23 509 Cost of goods sold -5 215 -4 478 -10 306 -8 608 -18 940 -17 242 Gross profit 1 768 1 707 3 484 3 219
Slide 19: Key operating ratios
Key operating ratios April - June Jan - June July 2005 - Full year Operating key ratios 2005 2006 2006 2005 June 2006 2005 Continuing operations excluding restructuring costs and impairment losses Operating profit 507 538 975 930 1 783 1 738 Profit before tax 431 481 831 812 1 549 1 530 Profit for t
Slide 20: Cash Flow Report
Cash Flow Report Trelleborg Group, SEK M Change Total cash flow EBITDA, Capital Fixed in excl. assoc. expendi- assets working Jan - March companies ture sold capital 2006 2005 R12 Trelleborg Automotive 450 -246 2 -153 53 277 195 Trelleborg Sealing Solutions 472 -76 6 -144 258 217 751 Trelleborg Engi
Slide 21: Q2 Earnings Per Share SEK 3.35 (3.85)
Q2 Earnings Per Share SEK 3.35 (3.85) Earnings per share, Light Blue, and also for continuing operations excl. restructuring costs/impairment losses, Blue , SEK 12,00 10,25 10,00 8,00 6,00 3,90 3,85 4,00 3,45 3,30 3,35 3,15 3,10 3,00 3,20 3,10 3,05 2,70 2,65 2,95 2,55 2,60 2,00 0,00 -0,75 -2,00 Q2 Q
Slide 22: Outlook for the third quarter 2006
Outlook for the third quarter 2006 Unchanged outlook ▼ Continued market growth, in line with the first half of 2006, is expected in the Group’s seven principal markets. ▼ Accelerating raw material prices is expected to result in continued cost pressure also during Q3 2006. SEAL DAMP PROTECT
Slide 23: More details and calendar
More details on this report can be found on www.trelleborg.com. Calendar Interim Report, January-September October 27, 2006 This report contains forward-looking Full Year Report February 13, 2007 statements that are based on the current expectations of the management of Trelleborg. Although manageme