Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2008 Earnings Presentation
20 slides from Trelleborg Ab Class B's earnings presentation, Jul 24, 2008
Slide 1: Welcome to Q2 2008 report update
Welcome to Q2 2008 report update July 24, 2008
Slide 2: Agenda
Agenda Highlights Business areas Financials Market outlook SEAL DAMP PROTECT 2
Slide 3: Group financial highlights
Group financial highlights Q2 sales increase of 5% d Group net sales SEK 8,326 M (7,943) d Group organic growth 7% (8) Q2 operating profit1 increase of 23% d Operating profit SEK 734 M (596) d ROS 8.7% (7.5) Q2 EBITDA1 increase of 14% d EBITDA SEK 989 M (869) d EBITDA margin 11.8% (10.9) d R12M EBIT
Slide 4: Group highlights
Group highlights Business environment d Strong demand in main markets d Sharp decline in North American automotive market, and continued shift from west to east Raw material prices d Continued increases d Primarily affecting Trelleborg Automotive Acquisitions d Four acquisitions completed during Q2
Slide 5: Agenda
Agenda Highlights Business areas Financials Market outlook SEAL DAMP PROTECT 5
Slide 6: Trelleborg Engineered Systems
Trelleborg Engineered Systems Q2 2008 Trelleborg Engineered Systems d Organic growth: 10% SEK M Q2 2008 Q2 2007 Change d Favorable demand in main markets Net sales 3,214 2,989 7.5% d Improved volume, cost efficiency and product EBITDA 447 367 21.8% mix EBITDA margin, % 13.6 12.2 140bp d Increased pr
Slide 7: Trelleborg Automotive
Trelleborg Automotive Q2 2008 Trelleborg Automotive1 d Organic growth: -1% SEK M Q2 2008 Q2 2007 Change d Sharp decline in North America, slow-down in Net sales 2,626 2,711 -3.1% Western Europe EBITDA 123 205 -40.0% d Sales negatively affected by North American EBITDA margin, % 4.7 7.5 -280bp market
Slide 8: Trelleborg Sealing Solutions
Trelleborg Sealing Solutions Q2 2008 Trelleborg Sealing Solutions1 d Organic growth: 9% SEK M Q2 2008 Q2 2007 Change d Favorable demand in prioritized markets Net sales 1,602 1,477 8.5% d Improved internal efficiency and product mix EBITDA 328 257 27.6% d Actions to optimize portfolio and EBITDA mar
Slide 9: Trelleborg Wheel Systems
Trelleborg Wheel Systems Q2 2008 Trelleborg Wheel Systems1 d Organic growth: 21% SEK M Q2 2008 Q2 2007 Change d Continued strong demand, especially for Net sales 977 812 20.3% large size agricultural tires EBITDA 131 108 21.3% d High capacity utilization and continued EBITDA margin, % 13.4 13.2 20bp
Slide 10: Agenda
Agenda Highlights Business areas Financials Market outlook SEAL DAMP PROTECT 10
Slide 11: Group financials
Group financials Trelleborg Group SEK M Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change Net sales 8,326 7,943 4.8% 16,393 15,719 4.3% Operating profit 337 489 -31.1% 911 934 -2.5% Items affecting -397 -105 -445 -268 comparability Operating figures1 Net sales 8,326 7,904 5.3% 16,393 15,633 4.9% EBITDA
Slide 12: Net sales bridge
Net sales bridge Net sales bridge % Q2 2008 Q2 2007 H1 2008 H1 2007 Organic growth +7 +8 +6 +9 Structural changes +1 +7 +1 +6 Currency -3 -2 -3 -3 Total +5 +13 +4 +12 SEAL DAMP PROTECT 12
Slide 13: Group net sales development by quarter and R12M
Group net sales development by quarter and R12M1 Net sales R12M: SEK M SEK 31,570 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007 2008 SEAL Net sales quarter (LHS) Ne
Slide 14: Items affecting comparability
Items affecting comparability d Total items affecting comparability of SEK -397 M before tax (-105) and SEK -269 M after tax (-82) related to: d Previously announced restructuring programs within Trelleborg Automotive: SEK -361 M d Restructuring program within Trelleborg Sealing Solutions in Canada:
Slide 15: Group EBITDA and margin development R12M
Group EBITDA and margin development R12M1 EBITDA R12M: SEK 3,432 M SEK M 10.8% margin % 4,000 18 3,500 16 14 3,000 12 2,500 10 2,000 8 1,500 6 1,000 4 500 2 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2005 2006 2007 2008 SEAL EBITDA R12M (LHS) EBITDA R12M margin (RHS) DAMP Note: PROTECT
Slide 16: Operating key figures
Operating key figures1 Operating key figures % R12M 20072 Return on capital employed 12.0 11.5 Return on equity 14.1 13.0 Debt / Equity ratio 118 100 Operating key figures % Q2 2008 Q2 2007 H1 2008 H1 2007 Financial net in % of avg. net 4.6 4.0 4.8 4.0 debt Tax rate 27 31 28 31 SEAL DAMP Note: 1 Con
Slide 17: Earnings per share
Earnings per share SEK 5.5 3.75 4.85 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 EPS EPS cont. ops, excl. IAC R12M1: 12.60 12.50 12.90 12.45 11.70 11.70 12.55 12.95 14.05 14.00 13.85 14.95 SEAL DAMP Note: PROTECT 1 Continuing operations ex
Slide 18: Agenda
Agenda Highlights Business areas Financials Market outlook SEAL DAMP PROTECT 18
Slide 19: Market outlook for Q3 2008
Market outlook for Q3 2008 Demand is expected to remain favorable within most of the Group’s market segments. In such segments as Aerospace, Offshore Oil/Gas, Infrastructure Construction and Agriculture, demand is expected to remain very strong For automotive-related operations, the North American m
Slide 20: More details and financial calendar
More details on this report can be found on www.trelleborg.com. Calendar Interim Report January-September 2008 October 28, 2008 Capital Markets Day December 3, 2008 Year-end report 2008 February 11, 2009 This report contains forward-looking statements that are based on the current expectations of th