Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q1 2003 Earnings Presentation
28 slides from Trelleborg Ab Class B's earnings presentation, Apr 25, 2003
Slide 1: Welcome to Q1 Report 2003
GROUP Welcome to Q1 Report 2003 April 25, 2003 1
Slide 2: Key messages
Key messages GROUP Main topics for today’s presentation Sales and earnings • Organic growth +5% in comparable improvement despite units/currencies weak markets • Operating profit, excl. non-comp., up 13% • Positives from European Automotive Structural programs programs pay off • Strong performance i
Slide 3: Contents
Contents GROUP Operations Key financials Outlook 3
Slide 4: Sales and earnings improvement despite weak markets
Sales and earnings improvement despite weak markets GROUP Trelleborg Group Positive development in Group net sales Net sales, adj. for comp. currencies/units, MSEK • MSEK 4,289 (4,543) 5 000 • Up 5% compared to Q1 2002, adjusted for 4 000 comparable currencies/units 3 000 2 000 Strong improvement in
Slide 5: Weak market conditions in Q1, in North America ...
Weak market conditions in Q1, in North America ... A U TGORM OOU TP I V E North America, Light vehicles, Change YoY NA light vehicle production, thousand units • Continued heavy use of customer incentives, e.g., 60-month 0% financing 5 000 • Slower sales have resulted in inventory build-ups 4 000 •
Slide 6: … as well as in Western Europe
… as well as in Western Europe A U TGORM OOU TP I V E Western Europe, Light vehicles, Change YoY Production Sales • Weak start to 2003 due to macro uncertainty and Light vehicle production, thousand units falling consumer confidence 5 000 • OEM build schedules adjusted to growing inventories • SUVs
Slide 7: Higher sales* despite lower European demand
Higher sales* despite lower European demand A U TGORMOOUTPI V E Trelleborg Automotive • Sales growth in Europe, South America Net sales, MSEK and Asia Quarterly R12 (red line) 3 000 10 000 • US sales on par with Q1 2002 • Doubled sales in China 2 500 8 000 • Trelleborg Rubore increased its sales in
Slide 8: Improved results due to European structural program
Improved results due to European structural program A U TGORM OOU TP I V E Trelleborg Automotive Operating profit, MSEK • Majority of improvement from reduced Quarterly R12 (red line) 250 800 cost base in Automotive Europe • Last year’s start-up problems with new 200 600 products in Coventry have be
Slide 9: Acquisitions and investments in Asia
Acquisitions and investments in Asia A U TGORMOOUTPI V E Trelleborg Automotive • A new more efficient factory will replace the present factory in Wuxi, China - construction to commence late 2003 • In April Trelleborg signed an agreement to acquire 51% in South Korean component specialist Kunhwa –Sal
Slide 10: Increased volumes and market shares
Increased volumes and market shares WHEEL GROUP Trelleborg Wheel Systems SYSTEMS • Market for industrial tires in line with Net sales, MSEK Q4 2002, but improved compared to a Quarterly R12 (red line) 1 000 3 000 weak Q1 2002 • Demand for agricultural tires in 2 500 Europe in line with Q1 last year
Slide 11: Continued positive effects from structural program
Continued positive effects from structural program WHEEL GROUP Trelleborg Wheel Systems SYSTEMS Operating profit, MSEK • Operating profit rose by 80% to Quarterly R12 (red line) 60 200 MSEK 45 (25) • Main drivers include 150 40 –Lower cost base 100 20 –Increased volumes 50 –Favorable product mix 0 0
Slide 12: Global supply agreement with Nacco
Global supply agreement with Nacco WHEEL GROUP Trelleborg Wheel Systems SYSTEMS • Trelleborg has entered into a new global agreement with Nacco Material Handling Group (Yale, Hyster etc.) –Both OE and aftermarket segments –Annual increase in sales to Nacco of approx. MSEK 60 • Significant interest a
Slide 13: Strong order intake in project-related business
Strong order intake in project-related business E N G I N EE R E D GROUP Trelleborg Engineered Systems SYSTEMS • Global demand on industrial supplies Net sales, MSEK was rather stable, excluding Europe Quarterly R12 (red line) 1 000 4 000 where demand was down • The market for project-related 3 500
Slide 14: Continued improved results
Continued improved results E N G I N EE R E D GROUP Trelleborg Engineered Systems SYSTEMS Operating profit, MSEK • Operating profit improved to MSEK Quarterly R12 (red line) 60 250 56 (49) 50 200 • Main drivers include 40 –Successful integration work 150 30 –Increased sales to infrastructure 100 20
Slide 15: Strong order inflow of oil/offshore projects
Strong order inflow of oil/offshore projects E N G I N EE R E D GROUP Trelleborg Engineered Systems SYSTEMS • Trelleborg has been awarded several larger project orders –Strategic order for support bearings to a floating oil platform in Canada –Larger order of oil hoses to UAE, Dubai –Largest order e
Slide 16: Weak start of quarter in Nordic building sector
Weak start of quarter in Nordic building sector BUILDING GROUP Trelleborg Building Systems SYSTEMS • Demand in the building industry Net sales, MSEK was slightly weaker in Nordic Quarterly R12 (red line) 600 2 000 region and in Germany than previous year 500 • Net sales for the BA amounted to MSEK 3
Slide 17: Decrease in volumes weakened results
Decrease in volumes weakened results BUILDING GROUP Trelleborg Building Systems SYSTEMS Operating profit, MSEK • Operating Profit amounted to Quarterly R12 (red line) 80 200 MSEK 3 (13) • The drop in profit came mainly from 60 150 a very weak Nordic market in January - the market then picked 40 100
Slide 18: Bolt-on acquisition of ETU in Germany
Bolt-on acquisition of ETU in Germany BUILDING GROUP Trelleborg Building Systems SYSTEMS • In April Trelleborg acquired German industrial profile manufacturer ETU –Turnover MSEK50 –18 employees –Complements present German unit ETM and strengthens the product development capacity • A new process for
Slide 19: Contents
Contents GROUP Operations Key financials Outlook 19
Slide 20: Profit after financial net excl. non-comparables up 22%
Profit after financial net excl. non-comparables up 22% GROUP Profit after financial items, excl. non-comparable items, Trelleborg Group, MSEK Quarterly R12 (red line) 300 1 200 250 1 000 200 800 150 600 100 400 50 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 • Operating result excl. non-compar
Slide 21: Positive developments in Other Operations
Positive developments in Other Operations GROUP Associated companies, Financial investments and buy-back of own shares • The Trenor holdings contributed with MSEK 18 MSEK (14) –Ahlsell in line with last year –BE Steel better –Trenor book value amounts to MSEK 257 • 2,218,000 shares in Boliden sold d
Slide 22: Continuously stable operating cash flow
Continuously stable operating cash flow GROUP Trelleborg Group, MSEK Operating result, Depre- Change Total cash flow excl. assoc. ciations, Goodwill Gross Fixed in Jan - Jan - companies & non- excl. depre- invest- assets working Mar Mar comp. items goodwill ciation ments sold capital 2003 2002 Trell
Slide 23: Earnings per share 1.55 in Q1 (1.45)
Earnings per share 1.55 in Q1 (1.45) GROUP Earnings per share, excluding non-comparable items, SEK • SEK 7.35 for Apr ‘02 2.50 - Mar ‘03 • SEK 7.25 for FY ‘02 2.00 1.50 1.00 0.50 0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001 2002 2003 Excluding goodwill 2.20 2.30 2.00 2.50 1.85 2.65 2.05 2.40 1.95 depreciati
Slide 24: Contents
Contents GROUP Operations Key financials Outlook 24
Slide 25: Unchanged priorities
Unchanged priorities GROUP Outlook • Somewhat higher LV production in North America during Q1, which has increased levels of inventory, is likely to negatively affect production downwards in Q2. For the full year, LV production in North America and Europe is, as previously communicated, expected to
Slide 26: To sum up ...
To sum up ... GROUP Main topics for today’s presentation Sales and earnings • Organic growth +5% in comparable improvement despite units/currencies weak markets • Operating profit, excl. non-comp., up 13% • Positives from European Automotive Structural programs programs pay off • Strong performance
Slide 27: Trelleborg Group Income Statements
Trelleborg Group GROUP Income Statements Group Jan - March April 2002 – Full year SEK M 2003 2002 March 2003 2002 Net sales 4 289 4 543 17 376 17 630 Cost of goods sold -3 326 -3 590 -13 498 -13 762 Gross profit 963 953 3 878 3 868 Selling, administration and R&D costs -794 -825 -3 114 -3 145 Items
Slide 28: Trelleborg Group Balance Sheets
Trelleborg Group GROUP Balance Sheets Group 31 March 31 March 31 Dec SEK M 2003 2002 2002 Intangible fixed assets 2 584 2 822 2 627 Tangible fixed assets 4 852 5 163 5 007 Financial fixed assets 1 053 1 143 1 108 Inventories 2 082 2 398 2 082 Receivables 4 532 4 794 4 091 Liquid funds 453 940 485 To