Trelleborg Ab Class B · OMXSTO:TREL_B

Trelleborg Ab Class B — Q1 2018 Earnings Presentation

31 slides from Trelleborg Ab Class B's earnings presentation, April 2018

  1. Slide 1: January - March 2018

    January - March 2018 Peter Nilsson, President & CEO Ulf Berghult, CFO

  2. Slide 2: Highlights, Business areas, Financials

    Highlights Business areas Financials Summary & Q2 2018 outlook Q&A 2

  3. Slide 3: Good earnings improvement: Q1 2018 financial summary

    Good earnings improvement Q1 2018 financial summary  Sales at SEK 8 577 M, increase of 3 percent  Organic sales up 4 percent. Excluding project deliveries, the organic sales increase was 5 percent  EBIT up 12 percent, corresponding to a margin of 15.1 percent 1  Items affecting comparability at

  4. Slide 4: Organic sales development by geography

    Organic sales development by geography 1 Organic sales excl. project-related business Total Group Jan-Mar 18 Jan-Mar 17 5% 8% Western Europe Share Jan-Mar 18 Jan-Mar 17 North America 47% 6% 5% Share Jan-Mar 18 Jan-Mar 17 22% 6% 5% Other Europe Share Jan-Mar 18 Jan-Mar 17 11% -5% 14% South and Other

  5. Slide 5: Highlights, Business areas, Financials

    Highlights Business areas Financials Summary & Q2 2018 outlook Q&A 5

  6. Slide 6: Better productivity fuels results and margins

    Better productivity fuels results and margins 1 Trelleborg Coated Systems  Organic sales: -4% SEK M Q1 2018 Q1 2017 Change, %  Coated fabrics; stronger in North Net sales 890 912 -2 America, weaker in Europe & Asia Organic, % -4 2  Printing blankets; lower sales in Structural, % 3 38 most regions

  7. Slide 7: Margins edge upwards on good organic growth

    Margins edge upwards on good organic growth 1 Trelleborg Industrial Solutions  Organic sales: +8% SEK M Q1 2018 Q1 2017 Change, %  Improved segments in general, Net sales 1 923 1 756 10 especially industrial-related Organic, % 8 2  Most geographical regions Structural, % - 37 improved, Asia parti

  8. Slide 8: Still challenging market conditions

    Still challenging market conditions 1 Trelleborg Offshore & Construction  Organic sales: -18% SEK M Q1 2018 Q1 2017 Change, %  Market situation remains Net sales 576 718 -20 challenging in offshore oil/gas Organic, % -18 -18  However, slight increase in activity Structural, % - - points to potent

  9. Slide 9: Solid quarter in all aspects

    Solid quarter in all aspects 1 Trelleborg Sealing Solutions  Organic sales: +8% SEK M Q1 2018 Q1 2017 Change, %  All geographical and market Net sales 2 800 2 623 7 segment developed favorably Organic, % 8 9  Asian sales particularly strong Structural, % 1 8  EBIT and margin improved on Exchange

  10. Slide 10: Strong improvement in profitability

    Strong improvement in profitability 1 Trelleborg Wheel Systems  Organic sales: +4% SEK M Q1 2018 Q1 2017 Change, %  Strong sales to especially Agri OE Net sales 2 505 2 328 8 customers Organic, % 4 8  Aftermarket sales impacted by Structural,% 1 91 prolonged winter conditions Exchange rate, % 3 4

  11. Slide 11: Highlights, Business areas, Financials

    Highlights Business areas Financials Summary & Q2 2018 outlook Q&A 11

  12. Slide 12: Organic growth hampered by project business

    Organic growth hampered by project business Sales development +3% 8 298 8 577 January - March [%] Organic 4 Structural 0 Currency -1 Total 3 Q1 17 Q1 18 12

  13. Slide 13: Structural growth replaced by organic growth

    Structural growth replaced by organic growth Target: 5-8% annual sales growth over a business cycle % 35% 33 30% 25% 22 23 19 20% 15% 10% 7 3 5 4 5% 2 3 1 0% -5% -2 -3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 15 15 15 15 16 16 16 16 17 17 17 17 18 Of which organic growth, %: -4 -1 -3 -0 -4 -6 -5 -4 3

  14. Slide 14: Highest first quarter sales to date

    Highest first quarter sales to date Sales development, R12M SEK M SEK M 9 000 32 500 8 000 30 000 7 000 27 500 6 000 25 000 5 000 22 500 4 000 20 000 3 000 17 500 2 000 15 000 1 000 12 500 0 10 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18

  15. Slide 15: Highest first quarter EBIT to date

    Highest first quarter EBIT to date 1 EBIT development EBIT EBIT-margin +12% +1.2 1 291 15.1% 1 154 13.9% Jan- Mar Q1 17 Q1 18 Q1 17 Q1 18 1Excluding items affecting comparability 15

  16. Slide 16: 20 consecutive quarters of improved EBIT

    20 consecutive quarters of improved EBIT 1 EBIT and margin, R12M SEK M % 4 500 16 4 000 14 3 500 12 3 000 10 2 500 8 2 000 6 1 500 1 000 4 500 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 ROS % EBIT 1Excluding items affecting comparabili

  17. Slide 17: Total Group profit & loss statement

    Total Group Profit & loss statement SEK M Q1 2 0 18 Q1 2 0 17 C hang e, % R 12 2 0 18 12 M 2 0 17 C hang e, % EBIT, excl. items affecting comparability 1 291 1 154 12 4 228 4 091 3 EBIT margin, % 15,1 13,9 1.2 p.p. 13,3 13,0 0.3 p.p. Restructuring co sts -18 -106 -920 -1 008 Capital gain divestment

  18. Slide 18: Underlying EPS improvement

    Underlying EPS improvement Earnings per share % -26% -26% 5 4.53 4.53 +9% 4 3.36 3.36 3.41 3.12 3 2 1 0 Group, Total Continuing operations Continuing operations excl. items affecting comparability Q1 17 Q1 18 18

  19. Slide 19: Stable cash flow

    Stable cash flow 1 Operating cash flow 133 -33 417 406 -111 Q1 17 EBITDA2 Net capex Working capital Q1 18 1Excluding items affecting comparability 19 2Including other non cash flow affecting items

  20. Slide 20: Solid cash conversion

    Solid cash conversion 1 Operating cash flow, R12M SEK M % 4 000 120 99 3 500 96 98 95 92 90 90 100 90 88 89 87 3 000 83 78 78 77 76 71 80 2 500 2 000 60 1 500 40 1 000 20 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 Cash conversion % O

  21. Slide 21: Leverage and gearing at stable levels

    Leverage and gearing at stable levels 1 Gearing and leverage development, R12M % X 55 53 2.2 2.1 50 48 48 2.0 1.9 1.8 1.8 1.8 45 1.8 1.7 40 40 38 38 1.6 34 35 34 1.4 1.4 1.4 35 1.4 30 1.2 25 1.0 20 0.8 15 0.6 10 0.4 5 0.2 0 0.0 10 11 12 13 14 15 16 17 18 10 11 12 13 14 15 16 17 18 Q1 Q1 Net debt / E

  22. Slide 22: Steadily decreasing underlying leverage

    Steadily decreasing underlying leverage Net debt / EBITDA, R12M X -0.5 2.5 -0.4 2.3 2.2 +0.6 2.0 1.8 1.8 1.8 1.5 1.2 1.0 0.5 0.0 Group, Total Continuing operations Continuing operations excl. items affecting comparability Q1 17 Q1 18 22

  23. Slide 23: ROE impacted by higher equity and US tax reform

    ROE impacted by higher equity and US tax reform Return on equity, R12M % 34 -22.9 32.1 -1.3 12.1 12 10.8 10 9.2 8 6 4 2 0 Group, Total1 Continuing operations excl. items affecting comparability Q1 17 Q1 18 12017 key figure includes the capital gain from the disposal of Vibracoustic 23

  24. Slide 24: Financial guidelines for full-year 2018

    Financial guidelines for full-year 2018  Capex: SEK ~1,8 - 2 Bn  Restructuring costs: SEK ~250 M  Underlying tax rate: ~26%  Amortization of intangible assets1: SEK ~300 M 1 Major part explained by purchase price allocation (PPA) 24

  25. Slide 25: Highlights, Business areas, Financials

    Highlights Business areas Financials Summary & Q2 2018 outlook Q&A 25

  26. Slide 26: Good earnings improvement: Q1 2018 financial summary

    Good earnings improvement Q1 2018 financial summary  Sales at SEK 8 577 M, increase of 3 percent  Organic sales up 4 percent. Excluding project deliveries, the organic sales increase was 5 percent  EBIT up 12 percent, corresponding to a margin of 15.1 percent 1  Items affecting comparability at

  27. Slide 27: Continued focus on growth and excellence

    Continued focus on growth and excellence 2018 priorities  Manage market conditions  Manage sales and margin development through market positioning, operational excellence and improved customer integration  Continued portfolio management to improve leading positions  Continued focus on innovation

  28. Slide 28: Outlook Q2 2018

    Outlook Q2 2018  Demand is expected to be on a par with the first quarter of 2018, adjusted for seasonal variations 28

  29. Slide 29: Welcome to our Capital Markets Day 2018

    Welcome to our Capital Markets Day 2018  The Capital Markets Day 20181 will provide an update of our strategic agenda, insights from our business areas as well as an opportunity to meet Trelleborg representatives  June 5th, 2018, 10:30-16:00 CET at Berns in central Stockholm, Sweden  Please regis

  30. Slide 30: Highlights, Business areas, Financials

    Highlights Business areas Financials Summary & Q2 2018 outlook Q&A 30

  31. Slide 31: | TRELLEBORG

    | TRELLEBORG

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