Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2012 Earnings Presentation
28 slides from Trelleborg Ab Class B's earnings presentation, Jul 19, 2012
Slide 1: Trelleborg interim report April – June 2012
Trelleborg interim report April – June 2012 Peter Nilsson, President & CEO Ulf Berghult, CFO
Slide 2: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Summary & Q3 2012 outlook ■ Q&A TRELLEBORG GROUP 2 July 19, 2012
Slide 3: Record EBIT and lower organic sales
Record EBIT and lower organic sales Q2 2012 highlights ■ Best ever quarter in terms of operating profits and margins ■ Mixed sales development; North America and parts of Asia good, Europe weaker ■ Organic sales weakened due to slowdown in Europe and tough y/y comparison ■ Continued investments in e
Slide 4: Operating margin above 12%
Operating margin above 12% Group financial highlights Q2 20121 (Continuing operations excl. Automotive) Net sales SEK M Q2 2012 Q2 2011 Change ■ Organic sales: -2% Net sales 5,663 5,542 2% ■ Currency effects: +4% EBITDA2 886 836 6% ■ Mixed geographical sales development Margin, % 15.6 15.1 50bp Earn
Slide 5: Operating margin at record levels also when Automotive is included
Operating margin at record levels also when Automotive is included Group financial highlights Q2 20121 (Continuing operations incl. Automotive) Net sales SEK M Q2 2012 Q2 2011 Change ■ Organic sales: -1% Net sales 7,517 7,361 2% ■ Currency effects: +3% EBITDA2 1,050 945 11% ■ Mixed geographical sale
Slide 6: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Summary & Q3 2012 outlook ■ Q&A TRELLEBORG GROUP 6 July 19, 2012
Slide 7: Profit and margins continue to improve
Profit and margins continue to improve Trelleborg Wheel Systems1 SEK M Q2 2012 Q2 2011 Change Net sales 1,052 1,006 5% ■ Organic sales: +4% ■ Favourable sales mix EBITDA2 158 132 20% ■ Good demand from OEM Margin, % 15.0 13.1 190bp customers Operating profit2 133 108 23% ■ North America growing Marg
Slide 8: Record profits and margins
Record profits and margins Trelleborg Sealing Solutions1 SEK M Q2 2012 Q2 2011 Change Net sales 1,944 1,905 2% ■ Organic sales: -1% ■ Record profits and margins EBITDA2 528 469 13% ■ Good demand in aerospace Margin, % 27.1 24.6 250bp segment Operating profit2 464 420 10% ■ Weaker in Europe, but cont
Slide 9: Mixed sales and earnings development
Mixed sales and earnings development Trelleborg Engineered Systems1 SEK M Q2 2012 Q2 2011 Change Net sales 2,765 2,763 - ■ Organic sales: -4% ■ Mixed development in general EBITDA2 265 321 -17% industry Margin, % 9.6 11.6 -200bp ■ Improving project related Operating profit2 178 241 -26% businesses M
Slide 10: Continues to exceed market growth
Continues to exceed market growth Trelleborg Automotive SEK M Q2 2012 Q2 2011 Change Net sales 1,865 1,827 2% ■ Organic sales: +3% ■ Favourable growth in N.A. and EBITDA1 164 109 50% large parts of Asia Margin, % 8.6 5.8 280bp ■ Mixed development in Europe Operating profit1 109 51 114% ■ Volume and
Slide 11: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Summary & Q3 2012 outlook ■ Q&A TRELLEBORG GROUP 11 July 19, 2012
Slide 12: Group sales, Q2 & 6M 2012
Group sales, Q2 & 6M 2012 SEK M Q2 2012 Q2 2011 Change 6M 2012 6M 2011 Change Trelleborg Wheel Systems 1,052 1,006 5% 2,180 1,956 11% Trelleborg Sealing Solutions 1,944 1,905 2% 3,917 3,718 5% Trelleborg Engineered Systems 2,765 2,763 0% 5,545 5,330 4% Others -98 -132 -206 -160 Continuing operations
Slide 13: Group operating profit, Q2 & 6M 2012
Group operating profit, Q2 & 6M 2012 SEK M Q2 2012 Q2 2011 Change 6M 2012 6M 2011 Change Trelleborg Wheel Systems 133 108 23% 289 204 42% Trelleborg Sealing Solutions 464 420 10% 893 772 16% Trelleborg Engineered Systems 178 241 -26% 338 440 -23% Others -71 -90 -145 -163 Continuing operations before
Slide 14: Group operating margins, Q2 & 6M 2012
Group operating margins, Q2 & 6M 2012 Percent Q2 2012 Q2 2011 Change 6M 2012 6M 2011 Change Trelleborg Wheel Systems 12.6 10.8 180bp 13.2 10.4 280bp Trelleborg Sealing Solutions 23.8 22.0 180bp 22.8 20.8 200bp Trelleborg Engineered Systems 6.4 8.7 -230bp 6.1 8.3 -220bp Continuing operations before i
Slide 15: Record EBIT but slightly lower organic sales
Record EBIT but slightly lower organic sales Financial highlights Q2 20121 Key ratios, SEK M Q2 2012 Q2 2011 Change Operating key ratios, SEK M Q2 2012 Q2 2011 Change Net sales 5,663 5,542 2% Items affecting comparability 171 -28 - Operating profit 8752 651 34% Operating profit3 704 679 4% Profit fo
Slide 16: Organic sales: -2%, Currency: +4%
Organic sales: -2%, Currency: +4% Sales development1 % 40 % Q2 2012 Q2 2011 Organic sales -2 +12 20 Structural 0 +4 change 0 Currency +4 -10 Total +2 +6 -20 -40 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Organic Structure Currency Tota
Slide 17: Sales development flattening out
Sales development flattening out Group net sales R12M and by quarter1 SEK M SEK M 6 000 25 000 5 000 20 000 4 000 15 000 3 000 10 000 2 000 5 000 1 000 0 0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Quarter (LHS) R12M (RHS) TRELLEBORG GROUP Note: 17 July 19,
Slide 18: Rolling EBITDA margin at record levels
Rolling EBITDA margin at record levels Group EBITDA and margin R12M1,2 SEK M % 3 500 16 3 000 14 12 2 500 10 2 000 8 1 500 6 1 000 4 500 2 0 0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 EBITDA (LHS) EBITDA margin (RHS) TRELLEBORG GROUP Note: 18 July 19, 2012
Slide 19: Strong cash flow and higher capex
Strong cash flow and higher capex Operating cash flow by quarter and R12M1 SEK M SEK M 800 2 900 700 606 600 2 400 500 1 900 400 300 1 400 200 900 100 0 400 -100 -200 -100 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Quarter (LHS) R12M (RHS) TRELLEBORG GROUP No
Slide 20: Solid capital structure
Solid capital structure Net debt / EBITDA and net gearing development Net debt / EBITDA Net gearing x % 10 150 8 120 6 90 4 60 48 2 30 1,8 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 09 09 09 09 10 10 10 10 11 11 11 11 12 12 09 09 09 09 10 10 10 10 11 11 1
Slide 21: Earnings per share in Q2 increased by 18%
Earnings per share in Q2 increased by 18% Earnings per share1,2 SEK 3,00 2,61 2,50 1,95 2,00 1,67 1,39 1,50 1,00 0,50 0,50 0,00 -0,50 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 EPS EPS excl. items affecting comparability R12M1 5.80 3.75 3.00 2.70 2.60 3.45 3.
Slide 22: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Summary & Q3 2012 outlook ■ Q&A TRELLEBORG GROUP 22 July 19, 2012
Slide 23: Record EBIT but slightly lower organic sales
Record EBIT but slightly lower organic sales Q2 2012 highlights ■ Best ever quarter in terms of operating profits and margins ■ Mixed sales development; North America and parts of Asia good, Europe weaker ■ Organic sales weakened due to slowdown in Europe and tough y/y comparison ■ Continued investm
Slide 24: Continued focus on growth and excellence
Continued focus on growth and excellence 2012 priorities ■ Continued focus on profitable growth, selected segments and geographies ■ Manage margin development through operational excellence ■ Manage uncertain market conditions ■ Continued portfolio management to improve leading positions ■ Successfu
Slide 25: Outlook Q3 2012
Outlook Q3 2012 ■ Demand in the third quarter is expected to be somewhat lower than the second quarter of 2012, adjusted for seasonal variations TRELLEBORG GROUP 25 July 19, 2012
Slide 26: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Summary & Q3 2012 outlook ■ Q&A TRELLEBORG GROUP 26 July 19, 2012
Slide 27: www.trelleborg.com
www.trelleborg.com
Slide 28: 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 tha