Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2009 Earnings Presentation
27 slides from Trelleborg Ab Class B's earnings presentation, Jul 24, 2009
Slide 1: Trelleborg interim report April – June 2009
Trelleborg interim report April – June 2009 Peter Nilsson, President & CEO Bo Jacobsson, CFO July 24, 2009 INTERIM REPORT APRIL – JUNE 2009
Slide 2: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2009 INTERIM REPORT APRIL – JUNE 2009 2 July 24, 2009
Slide 3: Second quarter 2009 Key messages
Second quarter 2009 Key messages ■ Sequentially improved operating margins in challenging market environment ■ Continued strong cash flow and improved financial position ■ Focus on long-term positioning and short-term adjustments in continued uncertain environment INTERIM REPORT APRIL – JUNE 2009 3
Slide 4: Capacity adjustments yielding effects. Strong cash flow
Capacity adjustments yielding effects. Strong cash flow Group financial highlights Q2 2009 SEK M Q2 2009 Q2 2008 Change Net sales Net sales 6,867 8,326 -18% ■ Organic sales: -29% EBITDA1 547 989 -45% ■ Currency effect: +10% Margin, % 8.0 11.8 -380bp Operating profit1 262 734 -64% Margin, % 3.8 8.7 -
Slide 5: Q2 demand in line with Q1 2009
Q2 demand in line with Q1 2009 Group business highlights Q2 2009 Demand ■ Investment-related industrial capital goods continued down ■ Decline in consumable part of industrial capital goods leveling off ■ Improved sentiment in Automotive industry Financing ■ Rights issue of SEK 2,169 M successfully
Slide 6: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2009 INTERIM REPORT APRIL – JUNE 2009 6 July 24, 2009
Slide 7: Varying demand in main segments
Varying demand in main segments Trelleborg Engineered Systems SEK M Q2 2009 Q2 2008 Change Q2 2009 Net sales 2,868 3,171 -10% ■ Organic sales: -23% EBITDA1 280 443 -37% ■ Varying demand within industrial Margin, % 9.8 13.7 -390bp segment Operating profit1 187 365 -49% ■ Project-related business stab
Slide 8: Continued sharp decline in vehicle production
Continued sharp decline in vehicle production Trelleborg Automotive SEK M Q2 2009 Q2 2008 Change Q2 2009 Net sales 2,122 2,640 -20% ■ Organic sales: -29% EBITDA1 104 125 -17% ■ Sales affected by government Margin, % 4.9 4.8 +10bp incentives Operating profit1 -6 20 - ■ Action programs and capacity Ma
Slide 9: Significant decline in industrial business
Significant decline in industrial business Trelleborg Sealing Solutions SEK M Q2 2009 Q2 2008 Change Q2 2009 Net sales 1,129 1,606 -30% ■ Organic sales: -39% EBITDA1 76 330 -77% ■ Under absorption of fixed costs Margin, % 6.8 20.5 -1,370bp ■ Under production to adjust Operating profit1 22 282 -92% i
Slide 10: Lower demand in agriculture
Lower demand in agriculture Trelleborg Wheel Systems SEK M Q2 2009 Q2 2008 Change Q2 2009 Net sales 782 977 -20% ■ Organic sales: -30% EBITDA1 108 131 -18% ■ Positive price/mix effect Margin, % 13.8 13.4 +40bp ■ Strong cash flow Operating profit1 83 110 -25% ■ Industrial tire transfer from USA Margi
Slide 11: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2009 INTERIM REPORT APRIL – JUNE 2009 11 July 24, 2009
Slide 12: Group financials
Capacity adjustments yielding effects. Strong cash flow Group financials Jul 2008- Full year SEK M Q2 2009 Q2 2008 Change Change Jun 2009 2008 Net sales 6,867 8,326 -18% 28,614 31,263 -8% Operating profit 159 337 -53% -332 374 - Items affecting -103 -397 - -1,099 -1,424 - comparability Operating fig
Slide 13: Net sales bridge
Organic sales: -29% Currency effect: +10% Net sales bridge % Q2 2009 Q2 2008 Organic growth -29 +7 Structural changes +1 +1 Currency +10 -3 Total -18 +5 INTERIM REPORT APRIL – JUNE 2009 13 July 24, 2009
Slide 14: Net sales R12: SEK 28,614 M
Net sales R12: SEK 28,614 M (31,2631) Group net sales development R12M and per quarter Group net sales SEK M SEK M 35000 14000 30000 12000 25000 10000 20000 8000 15000 6000 10000 4000 5000 2000 0 0 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 R12M (LHS) Quarter (RHS) INTER
Slide 15: Items affecting comparability
-SEK 103 M in items affecting comparability Items affecting comparability SEK M Q2 2009 Q2 2008 Jul 2008-Jun 2009 2008 Trelleborg Engineered Systems -1 - -63 -79 Trelleborg Automotive -15 -361 -505 -868 Trelleborg Sealing Solutions -85 -25 -94 -32 Trelleborg Wheel Systems -2 - -18 -15 Legal costs -
Slide 16: Sequential improvement in EBITDA and margin
Sequential improvement in EBITDA and margin Group EBITDA and margin development per quarter1 Group EBITDA and margin SEK M % 1200 12.0 1000 10.0 800 8.0 600 6.0 400 4.0 200 2.0 0 0.0 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 EBITDA (LHS) EBITDA margin (RHS) INTERIM REPO
Slide 17: Cash flow Q2 2009
Strong cash flow Cash flow Q2 2009 Cash flow SEK M 1200 1000 14 967 192 800 95 617 67 600 613 210 400 284 200 262 0 Tax EBIT Other OCF legal costs* FCF Net capex Change in Financial Deprecia- turing and Restruc- items tion WC INTERIM REPORT APRIL – JUNE 2009 Note: 17 July 24, 2009 * Related to compe
Slide 18: Cash flow H1 2009
Strong cash flow Cash flow H1 2009 Cash flow SEK M 3000 2500 2660 2000 21 2070 1500 1445 304 1000 973 427 570 444 500 75 639 49 325 0 0 EBIT FCF Rights issue legal costs* Financial Depreciation Dividend Net cash flow Net capex Other OCF Tax Acquisitions Change in turing and Restruc- items WC INTERIM
Slide 19: Strong cash flow last five quarters
Strong cash flow last five quarters Operating cash flow development per quarter Cash flow SEK M 1200 1000 800 600 400 200 0 -200 -400 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 -600 OCF INTERIM REPORT APRIL – JUNE 2009 19 July 24, 2009
Slide 20: Debt / equity ratio at 79%
Debt / equity ratio at 79% Key figures %1 Jul 2008-Jun 2009 2008 Return on capital employed 3.4 8.4 Return on equity 2.6 8.8 Tax rate 17%2 27%3 % Q2 2009 Q2 2008 Financial net in % of avg. 3.9 4.6 net debt Debt / equity ratio 79 124 INTERIM REPORT APRIL – JUNE 2009 Note: 1 Continuing operations excl
Slide 21: SEK 7,000 M in unutilized long-term financing facilities
SEK 7,000 M in unutilized portion of long- term financing facilities Debt structure Jun 30, 2009 Debt structure SEK M 14000 12000 10000 8000 6000 4000 2000 0 Net debt Jun 2009 2009 CP** 2010 2011 2012 2015 30 2009 Other* Commercial paper Syndicated loan Utilized (share of total) INTERIM REPORT APRIL
Slide 22: Earnings per share
Earnings per share EPS SEK 2.50 2.20 2.00 1.50 1.00 0.55 0.50 0.00 -0.50 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 -1.00 -4.25 R12M1: 5.35 5.35 5.55 5.85 6.40 6.35 6.25 6.80 6.45 4.45 3.15 1.45 EPS EPS continuing operations excl. items affecting comparability INTERIM RE
Slide 23: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q3 2009 INTERIM REPORT APRIL – JUNE 2009 23 July 24, 2009
Slide 24: Outlook Q3 2009
Outlook Q3 2009 ■ Overall, demand is expected to remain in line with the second quarter of 2009 INTERIM REPORT APRIL – JUNE 2009 24 July 24, 2009
Slide 25: Second quarter 2009 Key messages
Second quarter 2009 Key messages ■ Sequentially improved operating margins in challenging market environment ■ Continued strong cash flow and improved financial position ■ Focus on long-term positioning and short-term adjustments in continued uncertain environment INTERIM REPORT APRIL – JUNE 2009 25
Slide 26: www.trelleborg.com
www.trelleborg.com INTERIM REPORT APRIL – JUNE 2009
Slide 27: Forward looking statement
Forward looking statement ■ This presentation contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that