Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2005 Earnings Presentation
22 slides from Trelleborg Ab Class B's earnings presentation, Jul 21, 2005
Slide 1: Welcome to Six Month Report Update
GROUP Welcome to Six Month Report Update July 21, 2005 During the past century, Trelleborg has devoted its best efforts to damping, sealing and protecting against the impact of the elements. Our problem-solving approach focuses on superior quality and has been tested over time and under the harshest
Slide 2: Financial Highlights Q2/H1 2005
Financial Highlights Q2/H1 2005 GROUP d Sales increase of 4 % in Q2 2005 dGroup Net Sales in Q2 6,348 SEK M (6,108) dGroup Organic Growth in Q2 4 % dGroup Net Sales in H1 12,142 SEK M (11,923) d Net Profit increased with 13 % in Q2 2005 dNet Profit increased to 355 SEK M (315) (continuing operations
Slide 3: EMU Purchasing managers index vs Ind. Production
EMU Purchasing managers index vs Ind. Production GROUP 67,5 8 65,0 7 62,5 6 60,0 5 57,5 4 55,0 3 Percent Index 52,5 2 50,0 1 47,5 0 45,0 -1 42,5 -2 40,0 -3 37,5 -4 dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun 97 98 99 00
Slide 4: USA: ISM purchasing managers index vs ind. production
USA: ISM purchasing managers index vs ind. production GROUP 65,0 15,0 62,5 12,5 60,0 10,0 57,5 7,5 55,0 5,0 Percent Index 52,5 2,5 50,0 0,0 47,5 -2,5 45,0 -5,0 42,5 -7,5 40,0 -10,0 jan apr jul okt jan apr jul okt jan apr jul okt jan apr jul okt jan apr jul okt jan apr jul okt jan apr jul okt jan apr
Slide 5: Slight improvement in Q2 Production vs Q1
Slight improvement in Q2 Production vs Q1 GROUP Light vehicles, Quarterly change YoY NA light vehicle production, thousand units Euro light vehicle production, thousand units 6 000 6 000 5 000 5 000 4 000 4 000 3 000 3 000 2 000 2 000 1 000 1 000 0 0 Q2’03 Q2’04 Q2’05 Q2’03 Q2’04 Q2’05 Q2 YoY H1 YoY
Slide 6: Continued good growth in Industrial and Aerospace
Continued good growth in Industrial and Aerospace SEALING GROUP SOLUTIONS Trelleborg Sealing Solutions Net sales, SEK M Quarterly 1 600 6 000 d Q2 net sales 1,369 SEK M (1,295) 1 400 5 000 d Six months net sales 2,626 (2,605) 1 200 4 000 1 000 d R12 net sales 5,030 SEK M (5,009) 800 3 000 600 2 000
Slide 7: Continous mix adjustment reinforces margin imrpovement
Continous mix adjustment reinforces margin imrpovement SEALING GROUP H1, YoY SOLUTIONS Aerospace Segment Organic Growth +7 % d Strong demand Automotive Segment Organic Growth -11 % d Weak automotive demand in both US 9% and Europe d Exit from non profitable 23% businesses 68% Industry Segment Organi
Slide 8: Slight profit improvement
Slight profit improvement A U TGORMOOUTPI V E Trelleborg Automotive Net sales, SEK M Quarterly R12 (red line) 3 000 10 000 dQ2 net sales 2,473 SEK M (2,480) 2 500 8 000 dSix months net sales 4,775 SEK M (4,873) 2 000 dR12 net sales 9,084 MSEK (9,182) 6 000 1 500 4 000 1 000 dQ2 organic growth in lin
Slide 9: Continuously good sales development
Continuously good sales development E N G I N EE R E D GROUP Trelleborg Engineered Systems Net sales, SEK M SYSTEMS Quarterly R12 (red line) 1 400 5 000 • Q2 net sales 1,195 SEK M (1,115) 1 200 4 000 • Six months net sales 2,284 SEK M (2,134) 1 000 • R12 net sales 4,283 MSEK (4,133) 800 3 000 600 2
Slide 10: Strong sales and profit growth
Strong sales and profit growth WHEEL GROUP Trelleborg Wheel Systems Net sales, SEK M SYSTEMS Quarterly R12 (red line) 900 3 500 • Q2 net sales 804 SEK M (692) 800 3 000 700 • Six months net sales 1,570 SEK M (1,396) 2 500 600 • R12 net sales 2,896 MSEK (2,722) 500 2 000 400 1 500 • Q2 organic growth
Slide 11: Increased sales and effects from efficiency efforts
Increased sales and effects from efficiency efforts BUILDING GROUP Trelleborg Building Systems Net sales, SEK M SYSTEMS Quarterly R12 (red line) 700 2 500 • Q2 net sales 616 SEK M (610) 600 2 000 • Six months net sales 1,101 SEK M (1,105) 500 • R12 net sales 2,253 MSEK (2,257) 400 1 500 300 1 000 •
Slide 12: Organic Growth and Margin Development
Organic Growth and Margin Development GROUP Organic Growth Organic Growth ROS %, R12 Change H1 04 H1 05 Q2 04 Q2 05 Jun 04 Jun 05 T Automotive -2 % -1 % 0% 0% 7.6 5.6 -2.0% T Sealing Solutions +5 % +2 % +5 % +4 % 13.2* 13.2 0% T Engineered Systems +5 % +7 % +8 % +7 % 6.7 7.2 +0.5% T Wheel Systems +4
Slide 13: Some easing off in raw material cost development
Some easing off in raw material cost development … GROUP Polymers Change in development d Volatile price development Natural Rubber d Prices are levelling off Other polymers Metal Components $ Steel USD d Lower prices, visible at Trelleborg supplier level € Steel EURO d Prices are levelling off
Slide 14: TSS expands in China / New production unit in Shanghai
TSS expands in China / New production unit in Shanghai GROUP W Production and increased presence in China to support regional growth W Production unit including development capabilties and sales office to be built outside Shanghai W Product range focused on high quality precisions seals in PTFE mate
Slide 15: Expansion of Automotive operations in India
Expansion of Automotive operations in India GROUP W Trelleborg develops and produces mainly AVS components for car and truck applications. W Present plant in Ghaziabad (east of Dehli) has about 230 employees. W Major customers include Maruti Suzuki, Toyota Kirloskar, Tata Motors and Ford India. W Ne
Slide 16: Operating Key Ratios
Operating Key Ratios GROUP Operating key ratios Group April - June Jan - June July 2004 - Full year SEK M Operating key ratios 2005 2004 2005 2004 June 2005 2004 Continuing operations, excluding restructuring costs and impairment losses Operating profit 547 517 945 990 1 750 1 795 Profit before tax
Slide 17: Trelleborg Group – Income Statements
Trelleborg Group – Income Statements GROUP Income Statements Group April - June Jan - June July 2004 - Full year SEK M 2005 2004 2005 2004 June 2005 2004 Continuing operations Net sales 6 348 6 108 12 142 11 923 23 131 22 912 Cost of goods sold -4 582 -4 435 -8 812 -8 626 -17 234 -17 048 Gross profi
Slide 18: Operating cash flow
Operating cash flow GROUP Trelleborg Group, SEK M Change Total cash flow EBITDA, Gross Fixed in excl. assoc. invest- assets working R12 Jan - June companies ments sold capital 2005 2004 2005 Trelleborg Automotive 529 -235 1 49 344 215 469 Trelleborg Sealing Solutions 465 -63 16 -201 217 273 523 Trel
Slide 19: Q2 earnings Per Share SEK 3.90 (3,50)
Q2 earnings Per Share SEK 3.90 (3,50) GROUP Earnings per share for continuing operations, Light Blue, and also excl. restructuring costs/impairment losses, Blue , SEK 5,00 3,9 4,00 3,40 3,40 3,50 3,5 3,20 3,25 3,1 3,05 3,00 2,65 2,70 2,7 2,7 2,15 2,15 2,00 2,00 2,00 1,00 0,00 -1,00 -0,8 Q2 Q3 Q4 Q1
Slide 20: Largely unchanged market conditions
Largely unchanged market conditions GROUP Trelleborg Group Estimates for our 7 key markets Change Full-year 2005 Full-year 2005 Fragmented picture. General development Building/Infrastructure/ good in Scandinavia. Construction Excellent development. Oil & Gas General Good development. Heavy Trucks l
Slide 21: Outlook 2005
Outlook 2005 GROUP • For the full year 2005, growth is expected to remain favorable in aerospace, agriculture, transportation equipment, oil/gas and other industries. In the automotive industry, a weak trend is expected in Trelleborg’s principal markets. In construction and infrastructure-related in
Slide 22: Calendar, Financial information, Shareholder contacts
This interim report presentation is based on a financial report presented according to International Financial Reporting Standards (IFRS). Comparison figures has been compiled from January 1, 2004. More details can be found in the full Interim Report, pages 17-18 on www.trelleborg.com. GROUP Calenda