Trelleborg AB Class B · OMXSTO:TREL_B
Trelleborg AB Class B — FY2004 Earnings Presentation
30 slides from Trelleborg AB Class B's earnings presentation, Feb 8, 2005
Slide 1: Welcome to 2004 Full-year Report Update
GROUP Welcome to 2004 Full-year Report Update February, 2005 1
Slide 2: Financial Highlights Q4 2004
Financial Highlights Q4 2004 GROUP d Good sales development in 4 of 5 business areas dGroup Net Sales in Q4 5,529 MSEK (5,351) dOrganic Growth in Q4 5 % d Result marginally better than Q3 04 and in line with Q4 03 dProfit after financial items amounted to 367 MSEK (375) (continuing operations, excl
Slide 3: Financial Highlights Full-year 2004
Financial Highlights Full-year 2004 GROUP d 12 Month Net Sales up 28 % - 22,912 MSEK (17,960) dOrganic growth 3 % dWell positioned and stable structure for the future d Full-year Operating Key Figures (continuing operations, excl goodwill amortization, restructuring costs and write-downs) dOperating
Slide 4: All in all, 2004 we improved or met our key metrics
All in all, 2004 we improved or met our key metrics GROUP Group financial objectives vs. actual outcome; 2002-2004 30 29 28 20 Growth 8-10% p.a. 10 150 0 -3 111 -10 100 2002 2003 2004 84 Debt/equity ratio 75-125% 50 40 20 15 14.1 0 10.7 2002 2003 2004 ROE 15% 10 Excl. goodwill amort, 6.6 restructuri
Slide 5: Positive development in majority of our key markets
Positive development in majority of our 7 key markets GROUP Trelleborg Group Estimates for our 7 key markets H2, 2004 Building/Infrastructure/Construction Oil & Gas Transportation Equipment Automotive Agricultural Aerospace Other Industry 5
Slide 6: Growth above underlying markets
Growth above underlying markets SEALING GROUP SOLUTIONS Trelleborg Sealing Solutions Net sales, SEK M Quarterly 1 400 dFull year net Sales 5,009 MSEK (1,194) 1 200 dQ4 Net sales 1,176 SEK M (1,194) 1 000 800 d12M Organic growth 6 percent. 600 400 dGood demand in all geographical markets, 200 particu
Slide 7: Sales in line with underlying markets
Sales in line with underlying markets A U TGORMOOUTPI V E Trelleborg Automotive Net sales, SEK M Quarterly R12 (red line) 3 000 10 000 • Full year net Sales 9,182 MSEK (8,721) 2 500 8 000 • Q4 Net sales 2,187 SEK M (2,090) 2 000 6 000 1 500 • 12M organic growth -1 %. 4 000 1 000 • Flat market and vo
Slide 8: Strong growth, order intake and cash-flow
Strong growth, order intake and cash-flow E N G I N EE R E D GROUP Trelleborg Engineered Systems Net sales, SEK M SYSTEMS Quarterly R12 (red line) 1 200 5 000 • Full year net Sales 3,961 MSEK (3,564) 1 000 4 000 • Q4 Net sales 1,004 SEK M (955) 800 3 000 600 • 12M organic Growth 4 %. 2 000 400 • Goo
Slide 9: Strong fourth Quarter, 12M organic growth 10 %
Strong fourth Quarter, 12M organic growth 10 % WHEEL GROUP Trelleborg Wheel Systems Net sales, SEK M SYSTEMS Quarterly R12 (red line) 800 3 500 • Full year net Sales 2,933 MSEK (2,704) 700 3 000 600 • Q4 Net sales 736 SEK M (605). 2 500 500 2 000 400 • 12M organic growth 10 %. 300 1 500 1 000 • Stro
Slide 10: Scandinavia stabilising and with a positive trend
Scandinavia stabilising and with a positive trend BUILDING GROUP Trelleborg Building Systems Net sales, SEK M SYSTEMS Quarterly R12 (red line) 700 2 500 • Full year net Sales 2,257 MSEK (2,053) 600 2 000 • Q4 Net sales 546 SEK M (572). 500 1 500 400 • 12M organic growth 2 %. 300 1 000 200 • Flat gro
Slide 11: Organic Growth and Margin Development
Organic Growth and Margin Development GROUP Excluding restructuring costs Organic Growth ROS %, R12 Change Q4 04 FY 04 FY 03 FY 04 Trelleborg Automotive -1 % -1 % 8.0 6.0 -25 % Trelleborg Sealing Solutions +6 % +6 % 9.8* 13.5 +38 % Trelleborg Engineered Systems +5 % +4 % 6.3 7.1 +13 % Trelleborg Whe
Slide 12: Some new products and deliveries
Some new products and deliveries GROUP Unique jet-fire seals enables oil extraction in extreme conditions Specially produced seals help NASA explore Mars 12
Slide 13: Some new products and deliveries
Some new products and deliveries GROUP Giant bearings solve problem for flexing rig Healthy buildings with membranes that breathe 13
Slide 14: Some new products and deliveries
Some new products and deliveries GROUP A number of seals for Airbus A380 14
Slide 15: Some new products and deliveries
Some new products and deliveries GROUP Noise and vibration problems solved for car with ground-breaking engine design 15
Slide 16: Some new products and deliveries
Some new products and deliveries GROUP Dredging equipment make man- made paradise islands possible. A new range of seals to meet universal approvals in drinking water, gas condensing and heating applications. Makes life simpler for customers worldwide. 16
Slide 17: Automotive awarded Global Supplier of the Year
Automotive awarded Global Supplier of the Year GROUP d In DaimlerChrysler’s second annual Global Supplier Awards program, nine suppliers were recognized for outstanding performance in 2004. d Trelleborg was named top supplier in the chassis category. d Quality, delivery and technology rated best in
Slide 18: Initiative to Reduce Group Working Capital
Inititiative to Reduce Group Working Capital GROUP XWC January-December, R12 110 105 100 95 90 Days 85 80 75 70 65 60 Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Wheel Systems Effect by Sealing Comparable units d Wheel Systems served as pilot in 2004 with good results d Defined activities in all bus
Slide 19: Raw materials and semifinished goods
Raw materials and semifinished goods GROUP Total Raw Materials approx. 5,000 MSEK Polymers 46 % Metal Components 54 % 2,300 MSEK 2,700 MSEK Natural rubber Metal Content* Approx. 25 %, approx. 60 % various other polymer related chemicals and Semifinished goods Added value Approx. 40 % (Cutting, stamp
Slide 20: Raw materials development since last
Raw materials development since last GROUP Polymers Natural Rubber Other polymers Metal Components $ Steel USD or simular € Steel EURO 20
Slide 21: Comments to financial figures
Comments to financial figures GROUP d Financial Items dNet financial items in % of net financial liabilities was full-year 3.6 % d Tax dTotal efficient tax rate 21 % (34) dTax rate continuing operations 36 % d Net liabilities dNet liabilities reduced with 1.5 billion SEK during the year 6,951 MSEK (
Slide 22: Operating cash flow
Operating cash flow GROUP Trelleborg Group, SEK M Change EBITDA, Gross Fixed in Total cash flow excl. assoc. invest- assets working companies ments sold capital 2004 2003 Trelleborg Automotive 1 015 -546 36 -165 340 740 Sealing Solutions 856 -224 16 -69 579 80 Trelleborg Engineered Systems 419 -104
Slide 23: EPS excl goodwill amort. 3.10 SEK (3.40)
EPS excl goodwill amort. 3.10 SEK (3.40) GROUP Earnings per share, Light Blue, and also for continuing operations excl GW and restructuring costs/write-downs, Blue , SEK 10,00 9,30 8,00 6,00 4,00 3,40 3,50 3,20 3,1 2,65 2,60 2,10 2,15 2,30 1,70 1,85 1,95 2,00 2,00 1,45 0,00 -2,00 -1,85 Q1 Q2 Q3 Q4 Q
Slide 24: Proposed dividend 5.00 SEK (4.50)
Proposed dividend 5.00 SEK (4.50) GROUP • The Trelleborg Board proposes a cash dividend of 5.00 SEK (4.50) per share. • Group dividend policy states a long-term dividend of 30-50 % of net results. • Proposed dividend, amounting to 449 MSEK, means that approx. 45 % of net results 2004 are distributed
Slide 25: Buy-back program proposed
Buy-back program proposed GROUP • The Board proposes AGM authority to repurchase shares up to 10 percent of he total number of shares • Trelleborg holds approximately 6.3 million own shares • The mandate is to repurchase a maximum of approx. 3.3 million shares 25
Slide 26: Changes according to IFRS rules
Changes according to IFRS rules GROUP d Trelleborg will report according to IFRS from Q1 2005 dMainly adjustments refering to IFRS 3 Acquisitions and IAS 39 Financial instruments d Shareholders Equity dShareholders Equity, Swedish GAP 8,118 MSEK dChange applying IFRS +485 MSEK dNew Shareholders Equi
Slide 27: One full year in our New Structure
One full year in our New Structure GROUP Sales, EBITA* and Capital Employed per BA 2004, percent Sales 2004 EBITA* per BA 2004 Capital Employed 2004 Building 6% Building Building 10% 10% Wheel Wheel 9% Wheel 13% 9% Automotiv Automotiv Automotive e 31% Engineered e 34% 39% 12% Engineered Engineered 1
Slide 28: Largely unchanged market conditions
Largely unchanged market conditions GROUP Trelleborg Group Estimates for our 7 key markets H2, 2004 H1, 2005 Building/Infrastructure/Construction Oil & Gas Transportation Equipment Automotive Agricultural Aerospace Other Industry 28
Slide 29: Outlook 2005
Outlook 2005 GROUP “Continued growth in several of our industrial markets During the first half of 2005, a varied trend is expected in Trelleborg’s seven principal industrial markets. Growth in the fields of aerospace, agriculture, transportation equipment, oil/gas and other industry is expected to
Slide 30: Calendar, Financial information, Shareholder contacts
Calendar GROUP Interim Report January-March April 26, 2005 Half year Report January – June July 21, 2005 This report contains forward- looking statements that are based on the current expectations of the Financial information management of Trelleborg. Interim reports, annual reports, the stakeholder