Trelleborg Ab Class B · OMXSTO:TREL_B

Trelleborg Ab Class B — Q1 2009 Earnings Presentation

29 slides from Trelleborg Ab Class B's earnings presentation, Apr 17, 2009

  1. Slide 1: Interim report January-March 2009

    Interim report January-March 2009 Peter Nilsson, President & CEO Bo Jacobsson, CFO April 17, 2009

  2. Slide 2: Agenda

    Agenda „ Highlights „ Business areas „ Financials „ Outlook Q2 2009 INTERIM REPORT JANUARY-MARCH 2009 2 April 17, 2009

  3. Slide 3: Lower volume and earnings due to continued sharp decline in demand

    Lower volume and earnings due to continued sharp decline in demand Group financial highlights Q1 2009 Net sales Q1 „ Lower volume SEK M 2009 2008 Change „ Positive currency effect Net sales 6,877 8,067 -15% Earnings EBITDA1 349 871 -60% „ Under-absorption of costs Margin, % 5.0 10.8 -580bp „ Capacit

  4. Slide 4: Continued global economic downturn

    Continued global economic downturn Group business highlights Q1 2009 Business environment „ Lower demand and capex in industrial segments „ Unprecedented decline in automotive market Raw material prices „ Remained at lower levels than 2008 Competition investigations „ Appeal of European Commission d

  5. Slide 5: SEK 2.2 billion fully committed underwritten rights issue

    SEK 2.2 billion fully committed underwritten rights issue Summary „ Board of Directors proposing a rights issue of SEK 2.2 billion1 „ Fully committed and underwritten „ 60% guaranteed by existing shareholders „ Additional 11% of existing shareholders have expressed support „ Remainder underwritten b

  6. Slide 6: Strengthens financial position and increases ability to further improve market positions

    Strengthens financial position and increases ability to further improve market positions Rationale for rights issue „ Actively worked on repositioning towards attractive customer segments and improved footprint „ Action programs in Trelleborg Automotive „ Measures taken early to align capacity to lo

  7. Slide 7: Rights issue terms: April 21 AGM: April 23

    Rights issue terms: April 21 AGM: April 23 Indicative timetable Date Event April 21: Announcement of rights issue terms April 23: AGM votes on the Board’s proposal for rights issue April 24: First day of trading excl. subscription rights to participate in rights issue Record date for rights issue Ap

  8. Slide 8: Agenda

    Agenda „ Highlights „ Business areas „ Financials „ Outlook Q1 2009 INTERIM REPORT JANUARY-MARCH 2009 8 April 17, 2009

  9. Slide 9: Demand remained highly variable

    Demand remained highly variable Trelleborg Engineered Systems Q1 2009 Q1 „ Organic sales: -17% SEK M 2009 2008 Change „ Substantial decline in industrial segments Net sales 2,862 2,856 +0% „ Project-related operations, offshore EBITDA1 210 338 -38% oil/gas and infrastructure construction remained st

  10. Slide 10: Continued sharp decline in global demand

    Continued sharp decline in global demand Trelleborg Automotive Q1 2009 Q1 „ Organic sales: -41% SEK M 2009 2008 Change „ Unprecedented market environment „ Positioning in AVS Net sales 1,826 2,726 -33% „ Reduced inventory levels in EBITDA1 -67 138 - particular, but disciplined working capital manage

  11. Slide 11: Continued decline in main segments

    Continued decline in main segments Trelleborg Sealing Solutions Q1 2009 Q1 „ Organic sales: -32% SEK M 2009 2008 Change „ Substantial decline in industrial capital goods and automotive Net sales 1,276 1,587 -20% „ Capacity and personnel reductions EBITDA1 98 295 -67% „ Strong cash conversion „ Solid

  12. Slide 12: Varying demand in agricultural tires, significantly down in industrial tires

    Varying demand in agricultural tires, significantly down in industrial tires Trelleborg Wheel Systems Q1 2009 Q1 „ Organic sales: -14% SEK M 2009 2008 Change „ Positive trend for high-performance agricultural tires continued Net sales 950 962 -1% „ Substantial decline in other sub- EBITDA1 128 133 -

  13. Slide 13: Agenda

    Agenda „ Highlights „ Business areas „ Financials „ Outlook Q1 2009 INTERIM REPORT JANUARY-MARCH 2009 13 April 17, 2009

  14. Slide 14: Lower volumes and results due to significantly lower demand in Q1 2009

    Lower volumes and results due to significantly lower demand in Q1 2009 Group financials Q1 Apr 2008- SEK M 2009 2008 Change Mar 2009 2008 Change Net sales 6,877 8,067 -15% 30,073 31,263 -4% Operating profit 46 574 -92% -154 374 - Items affecting comparability -17 -48 - -1,393 -1,424 - Operating figu

  15. Slide 15: Organic sales: -27%; Currency effect on net sales: +10% in Q1 2009

    Organic sales: -27%; Currency effect on net sales: +10% in Q1 2009 Net sales bridge Q1 % 2009 2008 Organic growth -27 +5 Structural changes +2 +1 Currency +10 -2 Total -15 +4 INTERIM REPORT JANUARY-MARCH 2009 15 April 17, 2009

  16. Slide 16: Net sales R12M: SEK 30,073 M (31,263)

    Net sales R12M: SEK 30,073 M (31,263) Group net sales development1 SEK M SEK M 35000 9000 8000 30000 7000 25000 6000 20000 5000 15000 4000 3000 10000 2000 5000 1000 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 R12M (LHS) Quarter (RHS) INTERIM RE

  17. Slide 17: SEK 17 M in items affecting comparability

    SEK 17 M in items affecting comparability Items affecting comparability Q1 Apr 2008- SEK M 2009 2008 Mar 2009 2008 Trelleborg Engineered Systems -5 -22 -62 -79 Trelleborg Automotive -8 -25 -851 -868 Trelleborg Sealing Solutions -2 - -34 -32 Trelleborg Wheel Systems -2 -1 -16 -15 Legal costs - - -430

  18. Slide 18: EBITDA R12M: SEK 2,346 M (2,868)

    EBITDA1 R12M: SEK 2,346 M (2,868) Group EBITDA and margin development R12M1 SEK M % 4000 18 3500 16 3000 14 12 2500 10 2000 8 1500 6 1000 4 500 2 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 EBITDA (LHS) EBITDA margin (RHS) INTERIM REPORT JANUAR

  19. Slide 19: Returns negatively affected by lower profits

    Returns negatively affected by lower profits Debt / Equity ratio: 122% Operating key figures1 Apr 2008- % Mar 2009 2008 Return on capital employed 5.6 8.4 Return on equity 6.0 8.8 Debt / Equity ratio 122 124 Q1 % 2009 2008 Financial net in % of avg. net debt 4.3 5.0 Tax rate 18 30 INTERIM REPORT JAN

  20. Slide 20: Strong focus on cash flow: Cash flow Q1 2009

    Strong focus on cash flow Cash flow Q1 2009 SEK M 356 7 478 500 400 286 112 300 200 100 63 234 26 5 0 332 8 0 21 -100 Acquisitions* Financial Other Tax Net Capex EBIT Change in FCF OCF Dividend Restructuring Depreciation Net cash flow items WC INTERIM REPORT JANUARY-MARCH 2009 20 April 17, 2009 Note

  21. Slide 21: Strong focus on cash flow: Cash flow R12M

    Strong focus on cash flow Cash flow R12M SEK M 3000 2600 1486 2460 1107 2200 13 1800 1239 489 1400 509 1138 1000 1359 324 600 200 787 -200 -600 587 -236 -1000 Acquisitions Financial Other Tax Net Capex Depreciation Change in EBIT OCF FCF Dividend Restructuring Net cash flow items WC INTERIM REPORT J

  22. Slide 22: SEK 5,800 M in unutilized portion of long-term financing facilities

    SEK 5,800 M in unutilized portion of long- term financing facilities Debt structure Mar 31, 2008 SEK M 16000 14000 12000 10000 8000 6000 4000 2000 0 Net debt 2009 2009 2010 2011 2012 2015 Mar 31 CP** 2009 Other* Commercial paper Syndicated loan Utlized INTERIM REPORT JANUARY-MARCH 2009 Note: 22 Apri

  23. Slide 23: 3-6 months lag on raw material price effect

    3-6 months lag on raw material price effect Raw material prices development USD/bbl Brent oil EUR/ton Butadiene 200 1500 150 12M: (53)% 1000 12M: (39)% 100 High: (63)% High: (55)% 500 50 0 0 Apr-08 Jul-08 Oct-08 Jan-09 Apr-08 Jul-08 Oct-08 Jan-09 USD/kg Natural rubber USD/kg HR steel EUR/ton 4 1200

  24. Slide 24: R12M EPS: SEK 6.85

    R12M1 EPS: SEK 6.85 Earnings per share EPS EPS continuing operations excl. items affecting comparability SEK 5.0 4.0 3.75 0.85 3.0 2.0 1.0 0.0 -1.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2.0 06 06 06 07 07 07 07 08 08 08 08 09 -3.0 -9.35 R12M1: 12.45 11.70 11.70 12.55 12.95 14.05 14.00 13.85 14.95 14.

  25. Slide 25: Agenda

    Agenda „ Highlights „ Business areas „ Financials „ Outlook Q1 2009 INTERIM REPORT JANUARY-MARCH 2009 25 April 17, 2009

  26. Slide 26: Outlook Q2 2009

    Outlook Q2 2009 „ Overall, demand is expected to remain in line with the first quarter of 2009 INTERIM REPORT JANUARY-MARCH 2009 26 April 17, 2009

  27. Slide 27: Trelleborg continues to adapt to business environment

    Trelleborg continues to adapt to business environment Near term actions „ Operational portfolio management „ Align capacity „ Manage raw material costs „ Solve issue in offshore oil/gas „ Secure benefits from ongoing action programs „ Strong focus on cash flow INTERIM REPORT JANUARY-MARCH 2009 27 Ap

  28. Slide 28: Forward looking statement

    Forward looking statement „ This presentation contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward- looking statements are reasonable, no assurance can be given tha

  29. Slide 29: www.trelleborg.com

    www.trelleborg.com INTERIM REPORT JANUARY-MARCH 2009 29 April 17, 2009

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