Trelleborg AB Class B · OMXSTO:TREL_B
Trelleborg AB Class B — H1 2003 Earnings Presentation
28 slides from Trelleborg AB Class B's earnings presentation, Jul 21, 2003
Slide 1: Welcome to Six Month Report Update 2003
GROUP Welcome to Six Month Report Update 2003 1 July 21, 2003
Slide 2: Key messages
Key messages GROUP Main topics for today’s presentation Strong six month figures despite tough • Sales +2,3% in comparable units/currencies • Profit after financial net up 34% 500 MSEK (372) markets Structural programs • Positives from Automotive Europes programs running according • Wheel Systems pr
Slide 3: Contents
Contents GROUP Operations Key financials Outlook 3
Slide 4: Strong key figures despite tough conditions
Strong key figures despite tough conditions GROUP Trelleborg Group Group net sales Net sales, adj. for comp. currencies/units, MSEK • Six Month Sales 8,631 MSEK (9,330) 5 000 • Up 2% compared to Six Months 2002, 4 000 adjusted for comparable currencies/units 3 000 • Q2 Sales MSEK 4,342 (4,787) 2 000
Slide 5: N. American Light Vehicle Production
N. American Light Vehicle Production A U TGORMOO U TP I V E +2.4% -8.1% -5.3% -2.4% 5 4,5 4 3,5 2000 3 2001 2,5 2002 2 2003 1,5 1 0,5 0 Q1 Q2 Q3 Q4 Tot 2001: 15.5, 2002: 16.4M, 2003: 15.8M Note: Light vehicles comprises passenger cars, light trucks and light commercial vehicles Source: JD Power, Jun
Slide 6: US Light Vehicle Incentives, USD/unit
US Light Vehicle Incentives, USD/unit A U TGORMOO U TP I V E Light trucks & Passenger cars 3 500 Light trucks 3 000 2 500 2 000 1 500 Cars 1 000 500 0 Jun ‘99 Jun ‘00 Jun ‘01 Jun ‘02 Jun ‘03 Source: JD Power, June 2003 & Trelleborg 6
Slide 7: US Light Vehicle Inventory
US Light Vehicle Inventory A U TGORMOO U TP I V E Domestically manufactured and imported vehicles 90 80 70 2003 60 2002 50 2001 40 2000 30 10-year average 20 10 0 Oct Feb Jul Jan Jun Mar May Nov Dec Sep Aug Apr Source: JD Power, June 2003 & Trelleborg 7
Slide 8: European Light Vehicle Production
European Light Vehicle Production A U TGORMOO U TP I V E +0.2% -2.3% -6.5% -5.8% 5 4,5 4 3,5 2000 3 2001 2,5 2002 2 2003 1,5 1 0,5 0 Q1 Q2 Q3 Q4 Tot 2001: 16.7, 2002: 16.5M, 2003: 15.7M Note: Light vehicles comprises passenger cars, light trucks and light commercial vehicles Source: JD Power, June 2
Slide 9: Increased volumes in Europe/Asia compensates for US drop
Increased volumes in Europe/Asia compensates for US drop A U TGORMOO U TP I V E Trelleborg Automotive • Six Months Net sales 4,617 MSEK Net sales, MSEK (4,911). Currency adjusted sales rose Quarterly R12 (red line) 3 000 10 000 with 2 % • Increased sales in Europe 2 500 • Strong sales in Asia 8 000
Slide 10: Results in line with last year
Results in line with last year A U TGORMOO U TP I V E Trelleborg Automotive • Six months Operating Profit in line with Operating profit, MSEK last year, 322 MSEK (322) Quarterly R12 (red line) 200 800 • Majority of positive impact from reduced cost base in Automotive Europe • Strong contribution fro
Slide 11: Trelleborg Automotive
Trelleborg Automotive A U TGORMOO U TP I V E • Acquisition of 51% in South Korean component specialist Kunhwa completed during the period –Main Products AVS- Components and Boots where Trelleborg already is a global leader • Ford Group order for AVS components to a joint platform. Annual order value
Slide 12: Sales picking up in North America
Sales picking up in North America W GRHO EEUL P Trelleborg Wheel Systems SYSTEMS • Six Months Net sales 1,470 MSEK Net sales, MSEK (1,475). Currency adjusted sales rose Quarterly R12 (red line) 800 3 000 with 5 % • Decreased sales in Europe, both for 2 500 Agri and Industrial 600 • N America industr
Slide 13: Positives from structural program and improved US sales
Positives from structural program and improved US sales W GRHO EEUL P Trelleborg Wheel Systems SYSTEMS • Six months Operating Profit increased Operating profit, MSEK to 84 MSEK (63), up 33% Quarterly R12 (red line) 50 150 • Positive impact from structural program and improved US sales • Negative imp
Slide 14: Trelleborg Wheel Systems
Trelleborg Wheel Systems W HO EE GR UL P SYSTEMS • Increased market shares through successful marketing and sales activities in Agri sector • Global delivery of industrial tires to Nacco Material Handling Group has begun –Full-scale delivery expected as of the third quarter • Restructuring program a
Slide 15: Positive trend for project-related products
Positive trend for project-related products ENG G IRNOEE UPRED Trelleborg Engineered Systems SYSTEMS • Six Months Net sales increased to Net sales, MSEK 1,826 MSEK (1,803). Currency Quarterly R12 (red line) 1 000 4 000 adjusted sales rose with 2 % • Positive sales development for 3 500 Industrial Fl
Slide 16: Operating profit 15% up
Operating profit 15 % up ENG G IRNOEE UPRED Trelleborg Engineered Systems SYSTEMS • Six months Operating Profit Operating profit, MSEK increased to 110 MSEK (96), up 15% Quarterly R12 (red line) 60 250 • Main drivers include –Successful integration work 50 –Increased sales to project related 200 act
Slide 17: Trelleborg Engineered Systems
Trelleborg Engineered Systems ENG G IRNOEE URPED SYSTEMS • Increased sales and strengthened market position in project related business like infrastructure and oil/offshore • Trelleborg has been awarded several larger project orders –Large order for Elastopipe to ABB Offshore Systems –Order of marin
Slide 18: Recovery of sales volumes in Q2
Recovery of sales volumes in Q2 BG URI LODUI P NG Trelleborg Building Systems SYSTEMS • Six Months Net sales 870 MSEK Net sales, MSEK (891). Currency adjusted sales Quarterly R12 (red line) 600 2 000 dropped with 2 % • Continously weak demand in 500 Scandinavian as well as German 1 500 building sect
Slide 19: Back on track after strong Q2
Back on track after strong Q2 BG URI LODUI P NG Trelleborg Building Systems SYSTEMS • Six months Operating Profit 50 Operating profit, MSEK MSEK (58) Quarterly R12 (red line) 80 200 • Strong recovery in profits during Q2 47 MSEK (45) 60 150 40 100 20 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 2002 2003 19
Slide 20: Trelleborg Building Systems
Trelleborg Building Systems BG URI LODUI P NG SYSTEMS • Acquisition of German industrial profile manufacturer ETU completed –Turnover MSEK 50, 18 employees –Strengthens the product development capacity • Major order for TPO products –A result of strategic alliance with JPS Elastomerics –Ecoseal a pr
Slide 21: Contents
Contents GROUP Operations Key financials Outlook 21
Slide 22: Trelleborg Group – Income Statements
Trelleborg Group – Income Statements GROUP Group Apr-June Jan-June SEK M 2003 2002 2003 2002 Net sales 4 342 4 787 8 631 9 330 Cost of goods sold - 3 314 -3 719 -6 640 -7 309 Gross profit 1 028 1 068 1 991 2 021 Selling, administration and R&D costs -787 -824 -1 581 -1 649 Items affecting comparabil
Slide 23: Operating cash flow
Operating cash flow GROUP Trelleborg Group, MSEK Operating result, Depre- Change Total cash flow excl. assoc. ciations, Goodwill Gross Fixed in Jan - Jan - companies & non- excl. depre- invest- assets working Jun Jun comp. items goodwill ciation ments sold capital 2003 2002 R12 Trelleborg Automotive
Slide 24: Q2 Earnings per share up 40% - 2:10 SEK (1:50)
Q2 Earnings per share up 40 % - 2:10 SEK (1:50) GROUP Earnings per share, excluding non-comparable items, SEK • SEK 7.15 for July ‘02 2,50 - June ‘03 • SEK 7.25 for FY ‘02 2,00 1,50 1,00 0,50 0,00 Q1 Q2 Q3 Q4 Q1 Q2 2002 2003 Excl. goodwill depreciation 1.85 2.65 2.05 2.40 1.95 2.50 Excl. goodwill de
Slide 25: Contents
Contents GROUP Operations Key financials Outlook 25
Slide 26: Trelleborg prioritizes efficiency enhancement and growth
Trelleborg prioritizes efficiency enhancement and growth GROUP Outlook • Outlook unchanged – vehicle production for the full year is expected to be somewhat weaker compared with the preceding year in both the U.S. and Europe. • It is expected that industrial production will continue to be weak durin
Slide 27: To sum up ...
To sum up ... GROUP Main topics for today’s presentation Strong six month figures despite tough • Sales +2,3% in comparable units/currencies • Profit after financial net up 34% 500 MSEK (372) markets Structural programs • Positives from Automotive Europes programs running according • Wheel Systems p
Slide 28: Trelleborg Group Balance Sheets
Trelleborg Group GROUP Balance Sheets Group June 30 June 30 Dec 31 SEK M 2003 2002 2002 Intangible fixed assets 2 517 2 669 2 627 Tangible fixed assets 4 859 4 920 5 007 Financial fixed assets 1 047 1 145 1 108 Inventories 2 084 2 191 2 082 Receivables 4 630 4 789 4 091 Liquid funds 577 796 485 Tota