Slide 1: Q2, April-June 2023
Q2, April-June 2023 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2023 Q&A 2
Slide 3: Another strong quarter
Another strong quarter Q2 2023 financial summary1 ▪ Sales at SEK 8 696 M, an increase of 18 percent ▪ Organic sales +3 percent, M&A +9 percent, currency +6 percent ▪ EBITA grew by 14 percent to SEK 1 563 M, corresponding to a margin of 17.9 percent - highest quarterly EBITA to date ▪ Items affecting
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Apr - Jun 23 Apr - Jun 22 3% 11% Europe Share of sales1 Apr - Jun 23 Apr - Jun 22 46% 3% 10% North- and South America Share of sales1 Apr -Jun 23 Apr - Jun 22 33% 4% 23% Asia and rest of the world Share of sales1 Apr -
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2023 Q&A 5
Slide 6: Solid quarter in all aspects
Solid quarter in all aspects Trelleborg Industrial Solutions1 ▪ Organic sales: +6% SEK M Q2 2023 Q2 2022 Change, % Net sales 3 980 3 512 13 ▪ Strong sales growth for LNG and marine Organic, % 6 16 solutions Structural, % 2 1 ▪ Aerospace, automotive and railway Exchange rate, % 5 7 all had healthy sa
Slide 7: Mixed demand picture
Mixed demand picture Trelleborg Sealing Solutions1 ▪ Organic sales: +1%, M&A +16% SEK M Q2 2023 Q2 2022 Change, % Net sales 4 571 3 725 23 ▪ Sales grew in Americas, flat in Europe and weaker in Asia Organic, % 1 7 ▪ Sales to aerospace and healthcare & Structural, % 16 2 medical increased considerabl
Slide 8: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ / SEK M Tonnes, CO₂ (intensity) 35 000 5.0 31 222 4.5 30 000 27 916 -17% 26 202 26 111 4.0 3.6 3.6 25 000 3.5 3.4 22 521 3.0 3.0 20 000 3.0 2.5 15 000 2.0 10 000 1.5 1.0 5 000 0.5 0 0.0 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2
Slide 9: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity and LWC rate Mwh +1%-points LWC1 100 000 50 46% 47% 90 000 45 42 79 102 78 820 80 000 73 769 73 411 40 37 71 682 70 000 35 31 30 60 000 30 27 50 000 25 40 000 34 557 35 351 36 476 37 018 20 33 223 30 000 15 20
Slide 10: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2023 Q&A 10
Slide 11: Strong sales increase
Strong sales increase Sales development continuing operations +18% April – June (%) 8 696 Organic 3 7 351 Structural 9 Currency 6 Total 18 Q2 22 Q2 23 +20% January – June (%) 17 407 14 446 Organic 5 Structural 9 Currency 6 Total 20 6M 22 6M 23 11
Slide 12: Strong sales trend continues
Strong sales trend continues Target: 8% annual sales growth with constant currencies over a business cycle1 % 40% 32 30% 23 20% 17 15 17 16 13 12 10 10% 5 0% -10% -3 -9 -20% -18 20 20 20 21 21 21 21 22 22 22 22 23 23 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Of which organic growth, %: -21 -10 -4 5 31
Slide 13: 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 Quarter (LHS) R12M (RHS) 13
Slide 14: Solid EBITA growth
Solid EBITA growth EBITA and margin development1 +14% -0.8 1 563 18.7 17.9 1 376 EBITA % EBITA Apr - Jun Q2 22 Q2 23 Q2 22 Q2 23 +16% -0.7 3 091 18.4 17.7 2 658 Jan - Jun EBITA % EBITA 6M 22 6M 23 6M 22 6M 23 14 1 Excl. items affecting comparability, continuing operations
Slide 15: Highest R12M EBITA to date
Highest R12M EBITA to date EBITA and margin, R12M1 SEK M % +24% 6 000 20 5 000 18 4 000 16 3 000 14 2 000 12 1 000 0 10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 EBITA % EBITA 15 1 Excluding items affecting comparability, continuing operati
Slide 16: Profit & loss statement
Profit & loss statement SEK M Q2 2023 Q2 2022 Change, % 6M 2023 6M 2022 Change, % Net sales 8 696 7 351 18 17 407 14 446 20 EBITA, excluding items affecting comparability 1 563 1 376 14 3 091 2 658 16 EBITA-margin, % 17.9 18.7 17.7 18.4 EBIT, excluding items affecting comparability 1 442 1 319 9 2 8
Slide 17: EPS improvement impacted by one-off income
EPS improvement impacted by one-off income Earnings per share1 +387% % % +30% 30 27.67 6 4.71 Group, Total 20 Apr - Jun 4 3.63 Continuing operations, excl. items affecting comparability 10 5.68 2 0 0 Q2 22 Q2 23 Q2 22 Q2 23 % +215% % +22% 40 33.00 10 8.37 Group, Total Jan - Jun 6.88 Continuing opera
Slide 18: Strong cash flow improvement
Strong cash flow improvement Operating cash flow1 656 4 1 585 SEK M Q2 2023 Q2 2022 Change -102 -10 EBITDA 1 891 1 652 239 239 Working capital 151 -505 656 798 Net capex -373 -271 -102 Leasing -88 -78 -10 Other 4 0 4 Operating cash flow 1 585 798 787 Q2 22 EBITDA Working Net Leasing Other Q2 23 capi
Slide 19: 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 88 110 101 4 500 99 96 100 4 000 87 75 82 85 74 90 3 500 76 80 70 69 3 000 63 70 2 500 60 50 2 000 40 1 500 30 1 000 20 500 10 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19
Slide 20: Net cash position
Net cash position Gearing and leverage, R12M, Group1 % 2.5 60 56 56 2.5 2.4 2.4 51 52 50 2.0 1.8 1.8 1.7 40 37 35 35 1.5 1.5 1.2 30 25 1.0 20 0.5 10 0 0.0 -0.1 -4 -10 -0.5 16 17 18 19 20 21 22 23 23 16 17 18 19 20 21 22 23 23 Q1 Q2 Q1 Q2 Net debt / Equity Net debt / EBITDA 20 1 From 2019 gearing and
Slide 21: 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 14.1 13.9 13.9 13.5 13.5 12.9 12.5 12.0 11.6 11.0 11.2 10.0 7.5 5.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 19 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 21 1 Excluding item
Slide 22: 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 ~400 M (integration of acquisitions and measures to address anticipated lower demand in H2 2023) ▪ Amortization of intangible assets SEK ~500 M ▪ Underlying
Slide 23: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2023 Q&A 23
Slide 24: Another strong quarter
Another strong quarter Q2 2023 financial summary1 ▪ Sales at SEK 8 696 M, an increase of 18 percent ▪ Organic sales +3 percent, M&A +9 percent, currency +6 percent ▪ EBITA grew by 14 percent to SEK 1 563 M, corresponding to a margin of 17.9 percent - highest quarterly EBITA to date ▪ Items affecting
Slide 25: Outlook Q3 2023
Outlook Q3 2023 ▪ Demand is expected to be somewhat lower than in the second quarter of 2023, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 25
Slide 26: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2023 Q&A 26
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