Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Investor Day (2014)
90 slides from Trelleborg Ab Class B's investor day presentation, 2014
Slide 1: Trelleborg
iy ist "1 i Pm uM WN M { ue AM TRELLEBORG
Slide 2: All presentations will be uploaded to www.trelleborg.com
All presentations will be uploaded to www.trelleborg.com during the afternoon
Slide 3: CMD Agenda – the first half
CMD Agenda – the first half Group Overview & Strategy Peter Nilsson, President & CEO Group Financial Overview Ulf Berghult, Chief Financial Officer ~ 14:30 – Coffee break 15 minutes Trelleborg Offshore & Construction Fredrik Meuller, Business Area President Trelleborg Coated Systems Dario Po
Slide 4: CMD Agenda – the second half
CMD Agenda – the second half Trelleborg Sealing Solutions Claus Barsøe, Business Area President Trelleborg Wheel Systems Maurizio Vischi, Business Area President ~ 17:45 – Coffee break 15 minutes Intro – TrelleborgVibracoustic Peter Nilsson, President & CEO TrelleborgVibracoustic Hans-Jürgen
Slide 5: Capital Markets Day 2014
Capital Markets Day 2014 Peter Nilsson, President and CEO
Slide 6: Agenda
Agenda Trelleborg introduction Our evolution Trends and drivers for our business Securing and leveraging our leading positions Summary 6
Slide 7: We seal, damp and protect critical applications in demanding environments
We seal, damp and protect critical applications in demanding environments Our innovative engineered solutions accelerate performance for our customers in a sustainable way 7
Slide 8: Trelleborg
TRELLEBORG
Slide 9: Space shuttle heat shield
Vacuum and je, ee cold. .unfriendly. environment. Out ere, and polymer engineetng elt to the test | Ao SPACE ‘SHUTTLE [AT SHIELD After 254 days i in space it was time for Curiosity to enter the - “Martian atmosphere. Thanks to Trelleborg Eccospheres it was - well shielded and survi\ extreme heat and
Slide 10: Aerospace applications
hing on a plane has to work without fail. You can't just pull over and check the engine. As a ed partner to the aerospace industry, innovative solutions from Trelleborg help ensure that tless critical applications are up to the task. 10
Slide 11: VELPLTELEEDEFEEEEEEEEEE REE Se
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Slide 12: Critical applications: infrastructure and construction
Need critical applications ir en t \t Trelleborg, we have the answers for our customers: Our les dge technology and in-depth d erating conditions helps:them seal, damp and CTURE CONSTRUCTION — e, infrastructure!pro, re-complex customer: et challenges they face, ling profiles, dredging hoses and e. =
Slide 13: Pharmaceutical and life sciences solutions
nd protecting. All three can enhan faise profitability for Trelleborg custo! perior performance we provide is i PHARMACEUTICAL SRIF ICIENCES c= Patient’s safety. Operational success, Improved efficiency. ___Trelleborg’s innovative line of medical-grade silicone solutions is specially designed for ne
Slide 14: Blue Dimension: agricultural and forestry equipment
es become increasingly scarce, the world’s appetite for growing. We develop innovations that have a positive impact hile helping our customers save energy, reduce emissions and iency. We call this our Blue Dimension. "AGRICULTURAL & FORESTRY EQUIPMENT : Using less fu : ns while increasing crop yield
Slide 15: Working closely with customers
15 ‘our The closer we work together, the better the results. Teaming up with customers is key for us. That’s why our channels of communication are always open. By being accessible and ready to act, Trelleborg simplifies the work of their customers, helps them meet deadlines and do business better. m
Slide 16: Underwater exploration solutions
Our curious nature and ambition to evolve have always been driving forces at Trelleborg. They have led us to many new discoveries and for our customers to go larkn@gs. Underwater exploration down to the seabed deep sea would be impossible without a Remotely Operated Vehicle (ROV). Trelleborg’s solut
Slide 17: Our overall strategy
Our overall strategy Leading positions in selected segments
Slide 18: Our market approach
Our market approach Market Marketing Application Customer segment driven focus focus focus approach 18
Slide 19: Trelleborg
TRELLEBORG
Slide 20: Agenda
Agenda Trelleborg introduction Our evolution Trends and drivers for our business Securing and leveraging our leading positions Summary 20
Slide 21: From conglomerate to focused polymer group
From conglomerate to focused polymer group Trelleborg’s evolution Focused polymer group Positioning for profitable growth Polymer focus Conglomerate 21
Slide 22: From conglomerate to focused polymer group
From conglomerate to focused polymer group Trelleborg’s evolution Improved structure Focused polymer Geographical balance group Portfolio improvement Excellence in all aspects 22
Slide 23: Trelleborg's evolution is driven by our strategic cornerstones
Trelleborg’s evolution is driven by our strategic cornerstones Geographical Portfolio balance optimization Improved Excellence structure 23
Slide 24: Balancing our geographical footprint
Balancing our geographical footprint Structural improvements since 2005 Divested / closed manufacturing plant 24
Slide 25: Balancing our geographical footprint
Balancing our geographical footprint Structural improvements since 2005 (cont.) Acquired / greenfield manufacturing plant 25
Slide 26: Continuously strengthening our presence in China
Continuously strengthening our presence in China Major Group locations in China, 2005 Manufacturing plant Major sales office Wuxi, 50% JV Automotive anti-vibration Shanghai Sealing Solutions 26
Slide 27: Continuously strengthening our presence in China
Continuously strengthening our presence in China Major Group locations in China, 2014 Xi’an Wuhan Xingtai Chengdu Sealing Sealing Manufacturing plant Solutions Solutions Wheel Systems Sealing Solutions Major sales office Beijing Sealing Solutions Qingdao Marine construction Wuxi Specialty components
Slide 28: …as well as in Brazil
…as well as in Brazil Major Group locations in Brazil, 2005 Manufacturing plant Major sales office São Paolo Wheel Systems Guarulhos Automotive anti-vibration 28
Slide 29: …as well as in Brazil
…as well as in Brazil Major Group locations in Brazil, 2014 Manufacturing plant Major sales office Macaé Offshore Rio de Janeiro Lencois Paulista Offshore Wheel Systems São Jose dos Campos Sealing Solutions São Paolo Caxias do Sul Wheel Systems Sealing Solutions Sealing Solutions Oil & Marine hose P
Slide 30: …and in India
…and in India Major Group locations in India, 2005 Manufacturing plant Noida Major sales office Automotive anti-vibration Bengalure Sealing Solutions 30
Slide 31: …and in India
…and in India Major Group locations in India, 2014 Chandigarh Manufacturing plant New Dehli Sealing Solutions Major sales office Sealing Solutions Global support Ahmedabad Marine construction Sealing Solutions Indore Jamshedpur Sealing Solutions Sealing Solutions Mumbai Bengalure Sealing Solutions I
Slide 32: Summary – improving geographical balance
Summary – all this work results in Further improving our… geographical balance 32
Slide 33: Trelleborg's evolution is driven by our strategic cornerstones
Trelleborg’s evolution is driven by our strategic cornerstones Geographical Portfolio balance optimization Improved Excellence structure 33
Slide 34: Organically driven portfolio adjustments
Organically driven portfolio adjustments Our approach Market Marketing Application Customer segment driven focus focus focus approach 34
Slide 35: M&A to strengthen our leading positions
M&A to strengthen our leading positions Transactions 2005-2014 More than 40 acquisitions 15 divestments Global world leader created 35
Slide 36: Creation of TrelleborgVibracoustic
Creation of TrelleborgVibracoustic 50/50 Joint Venture between Trelleborg and Freudenberg Global market leader for automotive antivibration solutions All top OEMs and Tier 1 suppliers served Six business areas covering a complete product portfolio Strong product innovation pipeline Most gl
Slide 37: Successful integration
Successful integration Stand-alone company Global organization established Successful integration Stand-alone financing Solid performance 37
Slide 38: All focus on operational excellence
All focus on operational excellence Development according to plan Operational excellence and footprint optimization Integration benefits according to plan Cooperation with Freudenberg works well – agenda going forward aligned 38
Slide 39: A balanced business portfolio
A balanced business portfolio1 Segment split General industry General industry Capital goods 27% Capital goods 39% 40% 49% 34% 11% Light vehicles Light vehicles 2010 2013 1 Excluding indirect exposure through TrelleborgVibracoustic 39
Slide 40: Summary – improving business portfolio
Summary – all this work results in Further improving our… business portfolio 40
Slide 41: Trelleborg's evolution is driven by our strategic cornerstones
Trelleborg’s evolution is driven by our strategic cornerstones Geographical Portfolio balance optimization Improved Excellence structure 41
Slide 42: Balancing our geographical footprint still key
Balancing our geographical footprint still key Structural improvements since 2005 Divested / closed manufacturing plant Acquired / greenfield manufacturing plant 42
Slide 43: Global leading positions in all segments
Global leading positions in all segments Competitive position, no. 1-3 Aerospace precision seals Solid industrial tires Industrial hoses Polymer coated fabrics ~20 more segments 43
Slide 44: Summary – improving segment positions
Summary – all this work results in Further improving our… segment positions 44
Slide 45: Trelleborg's evolution is driven by our strategic cornerstones
Trelleborg’s evolution is driven by our strategic cornerstones Geographical Portfolio balance optimization Improved Excellence structure 45
Slide 46: Raising the bar in our daily operations
Raising the bar in our daily operations 46
Slide 47: Summary – further improving our daily operations
Summary – all this work results in Further improving our… geographical balance Further improving our… business portfolio Further improving our… segment positions Further improving our… daily operations …and in addition 47
Slide 48: Improved operating margins
Improved operating margins EBIT margin development +3.5pp 12.2% 8.7% 2006 2013 48
Slide 49: Operating margin development
Operating margin development1 EBIT margin target: ≥12% MSEK % 3,000 14% 12.2% 2,500 11.0% 12% 10.6% 9.6% 9.3% 9.3% 10% 2,000 8.7% 8% 1,500 2,613 6% 2,231 2,342 1,000 1,958 1,996 5.5% 1,840 4% 1,518 500 1,021 2% 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 EBIT EBIT % 1 Continuing operations, excl. i
Slide 50: Improved capital structure
Improved capital structure Trelleborg group, excl. items affecting comparability Net debt / Equity Net debt / EBITDA ratio 96% 5.0 38% 1.5 2006 2013 2006 2013 50
Slide 51: Summary – margins and capital structure
Summary – all this work results in Further improving our… geographical balance Further improving our… business portfolio Further improving our… segment positions Further improving our… daily operations Further improving our… margins and capital structure 51
Slide 52: Agenda
Agenda Trelleborg introduction Our evolution Trends and drivers for our business Securing and leveraging our leading positions Summary 52
Slide 53: Volatility is here to stay
Volatility is here to stay Selected near-term uncertainties Geopolitical European Union Capital markets 53
Slide 54: Well-balanced structure with early and late cyclical exposure
Well-balanced structure with early and late cyclical exposure Segment split 20131 General industry 40% 49% Capital goods 11% Light vehicles 1 Excluding indirect exposure through TrelleborgVibracoustic 54
Slide 55: Well-balanced structure with early and late cyclical exposure
Well-balanced structure with early and late cyclical exposure Segment split 20131 Capital goods: 49% Offshore oil & gas 11% Transportation equipment General industry 13% 40% 12% Agriculture 9% 11% 4% Infrastructure/ Construction Light vehicles Aerospace 1 Excluding indirect exposure through Trellebo
Slide 56: Global growth expected to have bottomed out
Global growth expected to have bottomed out World GDP development World real GDP per quarter World real GDP per year (%, yoy) (%, yoy) 3.9 3.5 3.5 3.4 3.2 3.3 3.3 3.2 3.3 3.0 3.1 2.8 2.8 2.9 2.7 2.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014F 2015F 2012 2013 2014F 56 Source: Goldman Sachs, D
Slide 57: Favorable segment fundamentals
Favorable segment fundamentals Segment trends and drivers Capital goods 49% Energy demand Urbanization Industrialization Emerging markets Globalization Advanced technology Emerging markets Mechanization Increased travel Global trade Biofuels 57
Slide 58: Favorable segment fundamentals
Favorable segment fundamentals Segment trends and drivers Capital goods 49% Energy demand Urbanization Industrialization Emerging markets Globalization Advanced technology Emerging markets Mechanization Increased travel Global trade Biofuels General industry 40% Polarization
Slide 59: Favorable segment fundamentals
Favorable segment fundamentals Segment trends and drivers Capital goods 49% Energy demand Urbanization Industrialization Emerging markets Globalization Advanced technology Emerging markets Mechanization Increased travel Global trade Biofuels Light vehicles General industry 40%
Slide 60: Interaction with customers is changing
Interaction with customers is changing Digital trends affecting customer interaction Internet users (1995-2013, million) 3.000 2.500 61% of global Internet users research products online 2.000 1.500 131bn web searches per month 1.000 500 0 82% of mobile media time from apps …and growing Source: Niel
Slide 61: Agenda
Agenda Trelleborg introduction Our evolution Trends and drivers for our business Securing and leveraging our leading positions Summary 61
Slide 62: Our overall strategy
Our overall strategy Application Market Marketing Customer focus segment driven focus focus approach 62
Slide 63: Increasing focus on revenue and growth
Increasing focus on revenue and growth Operational focus areas Cost & Cost & efficiency efficiency Organization Revenue Organization Revenue & structure & growth & structure & growth Past Going forward 63
Slide 64: for Growth
for Growth
Slide 65: Focus on our strategic cornerstones remains
Focus on our strategic cornerstones remains 65
Slide 66: Focus on our strategic cornerstones remains
Focus on our strategic cornerstones remains 66
Slide 67: We invest more than ever in training
We invest more than ever in training Trelleborg University Managerial Training Functional Training Managerial Level: 2-4 Managerial Level: 3-5 Senior Executive Program Strategic Marketing Managerial Level: 3-5 Managerial Level: 3-7 Induction Seminar Purchasing Excellence Managerial Level: 3-6 Manage
Slide 68: 68
68
Slide 69: Multidimensional growth based on excellent positions
Multidimensional growth based on excellent positions Differentiation Further exemplified in business area presentations Customer communication Innovation Segment Geography 69
Slide 70: Growth in a granular world
Growth in a granular world Growth Growth industries markets Mature Mature industries markets 70
Slide 71: A granular perspective on growth
A granular perspective on growth Making the right choices about where to compete A granular perspective on Segments Sub-segments Verticals Life Science Geographies Local regions Applications Diabetes Products Customers Asia China Insulin pen seal South East China 71
Slide 72: Catalyzing growth through acquisitions
Catalyzing growth through acquisitions Our acquisition focus – strengthen current positions 72
Slide 73: Catalyzing growth through acquisitions
Catalyzing growth through acquisitions Our acquisition focus – new geographies 73
Slide 74: Catalyzing growth through acquisitions
Catalyzing growth through acquisitions Our acquisition focus – adjacent segments 74
Slide 75: Catalyzing growth through acquisitions
Catalyzing growth through acquisitions Our acquisition focus – adjacent technologies 75
Slide 76: Staying ahead of customer expectations…
Staying ahead of customer expectations… Market approach Market Marketing Application Customer segment driven focus focus focus approach 76
Slide 77: …by moving with new technologies
…by moving with new technologies Market approach Marketing driven Market approach Application Customer segment focus focus focus 77
Slide 78: Technology impacting our business model
Technology impacting our business model Illustrative examples Average user looks at smart phone more than 150 times per day Facebook reached 150 M users in four years 78
Slide 79: Technology impacting our business model
Technology impacting our business model Illustrative examples Average user looks at smart phone more than 150 times per day Facebook reached 150 M users in four years WhatsApp processes 52 Bn messages per day WhatsApp reached 450 M users in four years 79
Slide 80: Growth supported by customer communication
Growth supported by customer communication Trelleborg makes it easier to do business with us – an example Customized stakeholder interfaces Single customized portal and platform Ease of doing business with us 80
Slide 81: One of our many leading edges
One of our many leading edges Mobile app tools – several new launches every month ISO Fits & Trelleborg Unit O-ring Aerospace Sealing Tolerances Gateway Converter Calculator Seals Glossary Trelleborg Trelleborg Agriculture Load Calculator Tire Book Technical Manual 81
Slide 82: Our Investor Relations app
Our Investor Relations app 82
Slide 83: Agenda
Agenda Trelleborg introduction Our evolution Trends and drivers for our business Securing and leveraging our leading positions Summary 83
Slide 84: Summary – further improving our positions
Summary – all this work results in Further improving our… geographical balance Further improving our… business portfolio Further improving our… segment positions Further improving our… daily operations Further improving our… margins and capital structure 84
Slide 85: Financial targets
Financial targets % Organic growth MSEK EBIT-margin % 5% 12,0% % Return on Equity 15,0% 85
Slide 86: A marketing driven approach…
A marketing driven approach… Market Marketing Application Customer segment driven focus focus focus approach 86
Slide 87: …creating the new Trelleborg
…creating the new Trelleborg Most High degree of complete customer-unique offering solutions Global Premium and positioning local strong brand supported by strategic marketing Focus on attractive When failure is not an option segments 87
Slide 88: Supported by a strong leadership talent pipeline
Supported by a strong leadership talent pipeline 88
Slide 89: Trelleborg operating structure
Trelleborg operating structure Group functions Trelleborg Trelleborg Trelleborg Trelleborg Trelleborg Coated Systems Industrial Offshore & Sealing Wheel Systems Solutions Construction Solutions 89
Slide 90: Our journey continues – securing our leading positions and expanding the business
Our journey continues – securing our leading positions and expanding the business 90