Slide 1: Q2, April-June 2024
Q2, April-June 2024 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2024 Q&A 2
Slide 3: Organic growth and improved margin
Organic growth and improved margin Q2 2024 financial summary1 ▪ Sales at SEK 8 711 M, in line with the preceding year ▪ Organic sales +1 percent, M&A -1 percent, currency unchanged ▪ EBITA at SEK 1 599 M, corresponding to a margin of 18.4 percent (18.0) ▪ Highest quarterly EBITA to date ▪ Items affe
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Apr - Jun 24 Apr - Jun 23 1% 3% Europe Share of sales1 Apr - Jun 24 Apr - Jun 23 46% -1% 3% North- and South America Share of sales1 Apr - Jun 24 Apr - Jun 23 35% 3% 4% Asia and rest of the world Share of sales1 Apr - J
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2024 Q&A 5
Slide 6: Improved profitability
Improved profitability Trelleborg Industrial Solutions1 ▪ Organic sales: -1%, M&A +1% SEK M Q2 2024 Q2 2023 Change, % Net sales 3 955 3 980 -1 ▪ Residential construction and industrial Organic, % -1 6 segments continue to be weak Structural, % 1 2 ▪ Sales to LNG and renewables increased Exchange rat
Slide 7: Back to organic growth
Back to organic growth Trelleborg Medical Solutions1 ▪ Organic sales: +2% SEK M Q2 2024 Q2 2023 Change, % Net sales 665 647 3 ▪ Sales to North American medtech Organic, % 2 9 market developed well Structural, % - 27 ▪ Inventory adjustment phase eased Exchange rate, % 1 7 ▪ EBITA and margin impacted
Slide 8: Acquisition of Baron Group finalized
Acquisition of Baron Group finalized Consolidated from 17 July 2024 8
Slide 9: Back to organic growth
Back to organic growth Trelleborg Sealing Solutions1 ▪ Organic sales: +5%, M&A +2% SEK M Q2 2024 Q2 2023 Change, % ▪ Sales to general industry declined in Net sales 4 349 4 048 7 most markets, better in Asia Organic, % 5 0 ▪ Deliveries to the automotive industry Structural, % 2 15 increased in all r
Slide 10: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ 30 000 28 411 25 000 23 603 20 775 20 000 17 894 15 000 13 549 10 000 5 000 0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 10
Slide 11: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity Mwh +26 p.p. 100 000 65% 91% 90 000 78 845 77 780 76 968 76 309 80 000 74 226 69 726 67 694 70 000 60 000 51 239 49 879 50 000 41 965 40 000 30 000 20 000 10 000 0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Renewable and f
Slide 12: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2024 Q&A 12
Slide 13: Slight sales increase
Slight sales increase Sales development continuing operations 0% April – June (%) 8 696 8 711 Organic 1 Structural -1 Currency 0 Total 0 Q2 23 Q2 24 -3% January – June (%) 17 407 16 945 Organic -1 Structural -1 Currency -1 Total -3 6M 23 6M 24 13
Slide 14: Back to organic sales growth
Back to organic sales growth Target: 8% annual sales growth with constant currencies over a business cycle1 % 40% 32 30% 23 20% 17 15 17 16 13 12 10 8 10% 3 0 0% -10% -5 21 21 21 22 22 22 22 23 23 23 23 24 24 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Of which organic growth, %: 31 16 9 13 11 15 15 7 3
Slide 15: 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 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 Quarter (LHS) R12M (RHS) 15
Slide 16: EBITA and margin improvement
EBITA and margin improvement EBITA and margin development1 +2% +0.4 1 563 1 599 18.0 18.4 EBITA Apr - Jun EBITA % Q2 23 Q2 24 Q2 23 Q2 24 0% +0.4 3 091 3 089 17.8 18.2 EBITA Jan - Jun EBITA % 6M 23 6M 24 6M 23 6M 24 16 1 Excl. items affecting comparability, continuing operations
Slide 17: R12M EBITA – continued improvement
R12M EBITA – continued improvement EBITA and margin, R12M1 SEK M % 7 000 20 +4% 6 000 18 5 000 16 4 000 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 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 EBITA % EBITA 17 1 Excluding items affecting comparability, conti
Slide 18: Profit & loss statement
Profit & loss statement SEK M Q2 2024 Q2 2023 Change, % 6M 2024 6M 2023 Change, % Net sales 8 711 8 696 0 16 945 17 407 -3 EBITA, excluding items affecting comparability 1 599 1 563 2 3 089 3 091 0 EBITA-margin, % 18.4 18.0 18.2 17.8 EBIT, excluding items affecting comparability 1 483 1 442 3 2 862
Slide 19: Slight EPS decline in continuing operations
Slight EPS decline in continuing operations Earnings per share1 % -85% % -5% 30 27.67 6 4.71 4.49 20 4 Group, Total Apr - Jun Continuing operations, 10 4.14 2 excl. items affecting comparability 0 0 Q2 23 Q2 24 Q2 232 Q2 24 % % +4% -75% 40 33.00 10 8.37 8.72 Group, Total Jan - Jun Continuing operati
Slide 20: Cash flow impacted by higher capex and WC
Cash flow impacted by higher capex and WC Operating cash flow1 1 585 59 SEK M Q2 2024 Q2 2023 Change 2 EBITDA 1 950 1 891 59 1 190 -333 Working capital -182 151 -333 -119 -4 Net capex -492 -373 -119 Leasing -86 -88 2 Other 0 4 -4 Operating cash flow 1 190 1 585 -395 Q2 23 EBITDA Working Net Leasing
Slide 21: Cash conversion remains at a solid level
Cash conversion remains at a solid level Operating cash flow, R12M1 SEK M % 6 000 140 128 5 500 122 121 120 5 000 99 101 96 4 500 99 85 95 100 92 4 000 76 88 88 3 500 69 74 75 80 63 3 000 2 500 60 2 000 40 1 500 1 000 20 500 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20 20 20 21 21 21 21
Slide 22: Net debt due to acquisitions and buy-backs
Net debt due to acquisitions and buy-backs Gearing and leverage, R12M, Group1 % 2.5 60 56 2.5 2.4 52 50 2.0 1.8 1.7 40 35 35 1.5 1.2 30 25 1.0 20 10 0.5 0.3 5 0 0.0 -2 -0.1 -10 -6 -0.2 -0.5 18 19 20 21 22 23 24 24 18 19 20 21 22 23 24 24 Q1 Q2 Q1 Q2 Net debt / Equity Net debt / EBITDA 22 1 From 2019
Slide 23: 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 13.9 13.9 13.0 12.9 12.7 12.7 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 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 23 1 Excluding item
Slide 24: Financial guidelines for full-year 2024
Financial guidelines for full-year 2024 Continuing operations ▪ Capex: SEK ~1.6 Bn ▪ Restructuring costs: SEK ~300 M ▪ Amortization of intangible assets SEK ~500 M 1 ▪ Underlying tax rate: ~25 percent 24 1 Excluding the acquisition of Baron Group
Slide 25: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2024 Q&A 25
Slide 26: Organic growth and improved margin
Organic growth and improved margin Q2 2024 financial summary1 ▪ Sales at SEK 8 711 M, in line with the preceding year ▪ Organic sales +1 percent, M&A -1 percent, currency unchanged ▪ EBITA at SEK 1 599 M, corresponding to a margin of 18.4 percent (18.0) ▪ Highest quarterly EBITA to date ▪ Items affe
Slide 27: Outlook Q3 2024
Outlook Q3 2024 ▪ Demand is expected to be somewhat higher compared with the second quarter of 2024, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 27
Slide 28: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2024 Q&A 28
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