Slide 1: Q3, July-September 2022
Q3, July-September 2022 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2022 Q&A 2
Slide 3: Another strong quarter
Another strong quarter Q3 2022 financial summary1 ▪ Sales at SEK 7 536 M, an increase of 28 percent, highest quarterly sales to date ▪ Organic sales +15 percent, currency +11 percent, M&A +2 percent ▪ EBIT grew by 34 percent to SEK 1 278 M, corresponding to a margin of 17.0 percent ▪ Highest third q
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Q3 22 Q3 21 15% 16% Europe Share of sales1 Q3 22 Q3 21 51% 7% 17% Americas Share of sales1 Q3 22 Q3 21 28% 24% 19% Asia & Other markets Share of sales1 Q3 22 Q3 21 21% 20% 13% 4 1 Share of total sales full-year 2021, co
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2022 Q&A 5
Slide 6: Strong growth and margin improvement
Strong growth and margin improvement Trelleborg Industrial Solutions1 SEK M Q3 2022 Q3 2021 Change, % ▪ Organic sales: +17% Net sales 3 472 2 708 28 ▪ Sales to most market segments and Organic, % 17 10 geographic markets increased Structural, % 1 1 ▪ Some slowdown in European construction Exchange r
Slide 7: Significant volume growth
Significant volume growth Trelleborg Sealing Solutions1 ▪ Organic sales: +13% SEK M Q3 2022 Q3 2021 Change, % ▪ Sales rose by a double-digit rate in most Net sales 3 970 3 086 29 geographies Organic, % 13 24 ▪ Sales to industrial and automotive Structural, % 3 - developed favorably Exchange rate, %
Slide 8: Acquisition of Minnesota Rubber & Plastics
Acquisition of Minnesota Rubber & Plastics Accelerating our journey ▪ Step change for Trelleborg Sealing Solutions – becoming as strong in North America as in Europe ▪ Strengthening the core – sailing in known waters and highly synergistic ▪ More complete and global offering to customers ▪ Enhances
Slide 9: - reported as Assets held for sale
- reported as Assets held for sale 9
Slide 10: Strong sales and EBIT growth
Strong sales and EBIT growth Trelleborg Wheel Systems1 ▪ Organic sales: +20% SEK M Q3 2022 Q3 2021 Change, % ▪ Sales growth in all tire categories and in Net sales 3 151 2 369 33 most geographical markets Organic, % 20 15 ▪ Sales in the Americas particularly strong Structural, % - - ▪ European after
Slide 11: Group sustainability KPI's
Group sustainability KPI’s Ton CO₂ Ton CO₂ / SEK MY Axis 100 000 10 92 127 90 000 9 8.5 80 092 80 000 8 7.3 70 000 67 965 7 6.2 60 000 6 50 000 5 40 000 4 30 000 3 20 000 2 10 000 1 0 0 Q1 22 Q2 22 Q3 22 Q1 22 Q2 22 Q3 22 CO₂ CO₂ intensity 11 Both graphs refer to Total Group, i.e., continuing operat
Slide 12: Group sustainability KPI's
Group sustainability KPI’s Mwh % 140 000 132 991 131 168 30 28.2 122 590 26.4 26.5 120 000 25 100 000 20 80 000 15 60 000 10 40 000 35 062 34 744 34 559 20 000 5 0 0 Q1 22 Q2 22 Q3 22 Q1 22 Q2 22 Q3 22 Renewable and fossil-free electricity Renewable and fossil-free electricity / total electricity To
Slide 13: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2022 Q&A 13
Slide 14: Strong organic sales
Strong organic sales Sales development continuing operations +28% Q3 (%) 7 536 Organic 15 5 872 Structural 2 Currency 11 Total 28 Q3 21 Q3 22 +24% 9 M (%) 21 982 17 773 Organic 13 Structural 2 Currency 9 Total 24 9M 21 9M 22 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% 20% 17 15 17 13 10 10% 6 7 5 0% -2 -3 -10% -9 -20% -18 19 19 20 20 20 20 21 21 21 21 22 22 22 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Of which organic growth, %: 2 1 -5 -21 -10 -
Slide 16: Sales development
Sales development Continuing operations, R12M SEK M SEK M 8 000 35 000 7 000 30 000 6 000 25 000 5 000 20 000 4 000 15 000 3 000 10 000 2 000 1 000 5 000 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 Quarter (LHS) R12M (RHS) 16
Slide 17: Highest Q3 EBIT and margin to date
Highest Q3 EBIT and margin to date EBIT and margin development1 +34% +0.7 1 278 16.3 17.0 EBIT 957 EBIT-margin Q3 Q3 21 Q3 22 Q3 21 Q3 22 +29% +0.7 3 827 16.7 17.4 EBIT 2 975 EBIT-margin 9M 9M 21 9M 22 9M 21 9M 22 17 1 Excl. items affecting comparability, continuing operations
Slide 18: Highest R12M EBIT and margin to date
Highest R12M EBIT and margin to date EBIT and margin, R12M1 SEK M % 5 000 +25% 18 16 4 000 14 12 3 000 10 8 2 000 6 1 000 4 2 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 ROS % EBIT 18 1 Excl. items affecting comparability, continuing oper
Slide 19: Profit & loss statement
Profit & loss statement SEK M Q3 2022 Q3 2021 Change, % 9M 2022 9M 2021 Change, % Net sales 7 536 5 872 28 21 982 17 773 24 EBIT, excluding items affecting comparability 1 278 957 34 3 827 2 975 29 EBIT- margin, % 17.0 16.3 17.4 16.7 Items affecting comparability -68 -20 -126 45 EBIT 1 210 937 29 3
Slide 20: Significant EPS improvement
Significant EPS improvement Earnings per share1 % +49% % +38% 6 4.79 4 3.52 Group, Total 4 3.21 Q3 2.55 Continuing operations, 2 excl. items affecting comparability 2 0 0 Q3 21 Q3 22 Q3 21 Q3 22 % +40% % +30% 20 15 Group, Total 15.28 10.40 Continuing operations, 10.94 9M 10 7.98 excl. items affectin
Slide 21: Cash flow reflects higher sales
Cash flow reflects higher sales Operating cash flow1 365 SEK M Q3 2022 Q3 2021 Change 1 014 46 928 EBITDA 1 621 1 256 365 -460 -28 -9 Working capital -334 126 -460 Net capex -267 -239 -28 Leasing -81 -72 -9 Other -11 -57 46 Operating cash flow 928 1 014 -86 Q3 21 EBITDA Working Net Leasing Other Q3
Slide 22: Cash conversion impacted by higher sales
Cash conversion impacted by higher sales Operating cash flow, R12M1 SEK M % 5 500 150 140 5 000 122 128 119 121 130 4 500 120 4 000 101 110 99 96 87 100 3 500 82 85 76 69 90 63 3 000 73 76 70 70 80 2 500 70 60 2 000 50 1 500 40 1 000 30 20 500 10 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 23: Net debt impacted by share buy-backs
Net debt impacted by share buy-backs Gearing and leverage, R12M, Group1 % 2.5 60 2.5 51 52 50 2.0 1.8 1.8 1.7 40 37 37 1.6 35 35 1.5 1.5 33 1.5 1.4 31 30 1.2 25 1.1 23 1.0 20 0.5 10 0 0.0 15 16 17 18 19 20 21 22 22 22 15 16 17 18 19 20 21 22 22 22 Q1 Q2 Q3 Q1 Q2 Q3 Net debt / Equity Net debt / EBITD
Slide 24: Positive ROCE development continues
Positive ROCE development continues Return on capital employed, R12M, % 17.5 16.5 16.1 15.7 15.3 15.1 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 1 Excl. items
Slide 25: Financial guidelines for full-year 2022
Financial guidelines for full-year 2022 Total group (including Assets held for sale) ▪ Capex: SEK ~1.4 Bn ▪ Restructuring costs: SEK ~300 M ▪ Amortization of intangible assets SEK ~300 M ▪ Underlying tax rate: ~25 percent 25
Slide 26: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2022 Q&A 26
Slide 27: Another strong quarter
Another strong quarter Q3 2022 financial summary1 ▪ Sales at SEK 7 536 M, an increase of 28 percent, highest quarterly sales to date ▪ Organic sales +15 percent, currency +11 percent, M&A +2 percent ▪ EBIT grew by 34 percent to SEK 1 278 M, corresponding to a margin of 17.0 percent ▪ Highest third q
Slide 28: Outlook Q4 2022
Outlook Q4 2022 ▪ Demand is expected to be slightly lower than in the third quarter of 2022, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 28
Slide 29: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2022 Q&A 29
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