Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q1 2023 Earnings Presentation
31 slides from Trelleborg Ab Class B's earnings presentation, Apr 27, 2023
Slide 1: Q1, January- March 2023
Q1, January- March 2023 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2023 Q&A 2
Slide 3: A good start to the year
A good start to the year Q1 2023 financial summary1 ▪ Sales at SEK 8 711 M, an increase of 23 percent ▪ Organic sales +7 percent, currency +7 percent, M&A +9 percent ▪ EBIT grew by 15 percent to SEK 1 411 M, corresponding to a margin of 16.2 percent ▪ Highest quarterly sales and EBIT to date ▪ Items
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Q1 23 Q1 22 7% 13% Europe Share of sales1 Q1 23 Q1 22 46% 7% 12% Americas Share of sales1 Q1 23 Q1 22 33% 12% 21% Asia & Other markets Share of sales1 Q1 23 Q1 22 21% -1% 8% 4 1 Share of total sales full-year 2022, cont
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2023 Q&A 5
Slide 6: Good development continues
Good development continues Trelleborg Industrial Solutions1 ▪ Organic sales: +8% SEK M Q1 2023 Q1 2022 Change, % Net sales 3 840 3 323 16 ▪ Strong sales growth for LNG and marine Organic, % 8 21 solutions Structural, % 1 2 ▪ Aerospace, automotive and railway all had Exchange rate, % 7 6 healthy sale
Slide 7: Highest sales and EBIT to date
Highest sales and EBIT to date Trelleborg Sealing Solutions1 ▪ Organic sales: +5%, M&A +17% SEK M Q1 2023 Q1 2022 Change, % Net sales 4 738 3 664 29 ▪ Sales growth in Europe and Americas Organic, % 5 8 ▪ Asia weaker on lower China sales Structural, % 17 1 ▪ Sales to aerospace and healthcare & Exchan
Slide 8: Reported as Assets held for sale
- reported as Assets held for sale 8
Slide 9: Stable development
Stable development Trelleborg Wheel Systems1 ▪ Organic sales: 0% SEK M Q1 2023 Q1 2022 Change, % Net sales 3 639 3 365 8 ▪ Favorable sales in North America and in Organic, % 0 33 the OE agricultural tire business Structural, % - - ▪ Europe impacted by lower aftermarket Exchange rate, % 8 7 sales EBI
Slide 10: Divestments update
Divestments update Trelleborg Wheel Systems and Trelleborg Printing Solutions ▪ Merger clearances for Trelleborg Wheel Systems in the quarter ▪ Closing of the Wheel Systems transaction is expected in Q2 2023 ▪ Closing of the Printing Solutions transaction is expected in Q2 2023 ▪ In line with earlie
Slide 11: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ / SEK M Tonnes, CO₂ (intensity) 35 000 32 417 10 31 378 9 30 000 27 879 26 202 8 25 000 22 521 7 -28% 20 000 6 5 4.6 15 000 4 3.6 3.6 3.4 3.0 10 000 3 2 5 000 1 0 0 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22
Slide 12: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity and LWC rate Mwh LWC1 44% 46% 100 000 50 +2%-points 90 000 45 42 79 102 80 000 75 508 73 769 73 411 40 37 71 682 70 000 35 32 31 60 000 30 27 50 000 25 40 000 33 335 34 557 35 351 36 476 20 33 223 30 000 15 20
Slide 13: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2023 Q&A 13
Slide 14: Strong sales increase
Strong sales increase Sales development continuing operations +23% Q1 2023 (%) 8 711 7 095 Organic 7 Structural 9 Currency 7 Q1 22 Q1 23 Total 23 14
Slide 15: Strong sales trend continues
Strong sales trend continues Target: 5-8% annual sales growth with constant currencies over a business cycle1 % 40% 32 30% 23 20% 17 15 17 16 13 10 10% 5 0% -2 -3 -10% -9 -20% -18 20 20 20 20 21 21 21 21 22 22 22 22 23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Of which organic growth, %: -5 -21 -10 -4
Slide 16: Sales development
Sales development Continuing operations, R12M SEK M SEK M 9 000 35 000 8 000 30 000 7 000 25 000 6 000 5 000 20 000 4 000 15 000 3 000 10 000 2 000 5 000 1 000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 Quarter (LHS) R12M (RHS) 16
Slide 17: Highest EBIT to date
Highest EBIT to date EBIT and margin development1 +15% -1.1 1 411 17.3 16.2 1 230 EBIT Q1 EBIT-margin Q1 22 Q1 23 Q1 22 Q1 23 17 1 Excluding items affecting comparability, continuing operations
Slide 18: Highest R12M EBIT to date
Highest R12M EBIT to date EBIT and margin, R12M1 SEK M % 6 000 20 26% 5 000 18 4 000 16 3 000 14 2 000 12 1 000 0 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 ROS % EBIT 18 1 Excluding items affecting comparability, continuing operations
Slide 19: Profit & loss statement
Profit & loss statement SEK M Q1 2023 Q1 2022 Change, % Net sales 8 711 7 095 23 EBIT, excluding items affecting comparability 1 411 1 230 15 EBIT- margin, % 16.2 17.3 Items affecting comparability -49 -25 EBIT 1 362 1 205 13 Financial income and expenses -165 -45 Profit before tax 1 197 1 160 3 Tax
Slide 20: Solid EPS improvement
Solid EPS improvement Earnings per share1 +11% +13% % % 6 5.33 4 3.66 4.81 3.25 Continuing operations, Group, Total Q1 excluding items affecting comparability 4 2 2 0 0 Q1 22 Q1 23 Q1 22 Q1 23 20 1 No dilution effects
Slide 21: Strong cash flow improvement
Strong cash flow improvement Operating cash flow1 308 SEK M Q1 2023 Q1 2022 Change -12 549 EBITDA 1 856 1 548 308 -56 -9 -10 Working capital -821 -809 -12 328 Net capex -385 -329 -56 Leasing -85 -76 -9 Other -16 -6 -10 Operating cash flow 549 328 221 Q1 22 EBITDA Working Net Leasing Other Q1 23 capi
Slide 22: Cash conversion trending higher
Cash conversion trending higher Operating cash flow, R12M1 SEK M % 6 000 140 128 5 500 122 121 130 119 120 5 000 101 110 4 500 99 96 100 4 000 87 75 85 74 90 82 3 500 76 80 70 70 69 3 000 63 70 2 500 60 50 2 000 3 953 40 1 500 30 1 000 20 500 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 23: Impact from acquisitions & share buy-backs
Impact from acquisitions & share buy-backs Gearing and leverage, R12M, Group1 Proceeds from ongoing divestments of the Group’s tire and printing blanket operations will exceed current net debt % 2.5 60 56 56 2.5 2.4 2.4 51 52 50 2.0 1.8 1.8 1.7 40 37 1.5 35 35 1.5 30 1.2 25 1.0 20 10 0.5 0 0.0 16 17
Slide 24: ROCE impacted by acquisitions
ROCE impacted by acquisitions Return on capital employed, R12M, % 17.5 16.5 16.1 15.9 15.7 14.9 15.1 14.9 15.0 14.5 14.1 13.9 13.5 13.5 12.9 12.5 12.0 11.6 11.0 11.2 10.0 7.5 5.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 24 1 Excluding item
Slide 25: Financial guidelines for full-year 2023
Financial guidelines for full-year 2023 Continuing operations (excluding Assets held for sale) ▪ Capex: SEK ~1.5 Bn ▪ Restructuring costs: SEK ~250 M ▪ Amortization of intangible assets SEK ~500 M ▪ Underlying tax rate: ~26 percent 25
Slide 26: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2023 Q&A 26
Slide 27: A good start to the year
A good start to the year Q1 2023 financial summary1 ▪ Sales at SEK 8 711 M, an increase of 23 percent ▪ Organic sales +7 percent, currency +7 percent, M&A +9 percent ▪ EBIT grew by 15 percent to SEK 1 411 M, corresponding to a margin of 16.2 percent ▪ Highest quarterly sales and EBIT to date ▪ Items
Slide 28: Outlook Q2 2023
Outlook Q2 2023 ▪ Demand is expected to be in line with or somewhat lower than in the first quarter of 2023, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 28
Slide 29: Capital Markets Day 2023
Capital Markets Day 2023 ▪ May 23 between 12:00 – 16:30 CET ▪ IVA Konferenscenter at Grev Turegatan 16 in Stockholm ▪ If you intend to participate physically, please register no later than 14:00 CET on May 10 ▪ Please note that a new registration for the May event is required even though you may hav
Slide 30: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2023 Q&A 30
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