Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q1 2022 Earnings Presentation
29 slides from Trelleborg Ab Class B's earnings presentation, April 2022
Slide 1: Q1, January-March 2022
Q1, January-March 2022 Peter Nilsson, CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2022 Q&A 2
Slide 3: Strong growth and profitability
Strong growth and profitability Q1 2022 financial summary1 ▪ Sales at SEK 7 095 M, an increase of 22 percent ▪ Organic sales +13 percent, currency +7 percent, M&A +2 percent ▪ EBIT grew by 25 percent to SEK 1 230 M, corresponding to a margin of 17.3 percent ▪ Highest quarterly sales, EBIT and margin
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Jan - Mar 22 Jan - Mar 21 13% 5% Europe Share Jan - Mar 22 Jan - Mar 21 51% 12% 4% Americas Share Jan - Mar 22 Jan - Mar 21 28% 21% -9% Asia & Other markets Share Jan - Mar 22 Jan - Mar 21 21% 8% 32% Share = Continuing
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2022 Q&A 5
Slide 6: Strong growth and record profitability
Strong growth and record profitability Trelleborg Industrial Solutions1 SEK M Q1 2022 Q1 2021 Change, % ▪ Organic sales: +21% Net sales 3 323 2 577 29 ▪ Sales grew significantly in all geographic Organic, % 21 3 markets Structural, % 2 0 ▪ Sales to all market segments increased Exchange rate, % 6 -8
Slide 7: Good growth and increased margins
Good growth and increased margins Trelleborg Sealing Solutions1 ▪ Organic sales: +8% SEK M Q1 2022 Q1 2021 Change, % ▪ Organic sales grew in Americas and Europe Net sales 3 664 3 133 17 ▪ Lower sales in Asia as a result of new restrictions Organic, % 8 6 and measures in China due to Covid-19 Structu
Slide 8: Trelleborg Wheel Systems reported as Assets held for sale
Trelleborg Wheel Systems reported as Assets held for sale 8
Slide 9: Accelerating our journey
Accelerating our journey Strategic rationale for deal ▪ More profitable, less cyclical and improved sustainability profile ▪ More coherent portfolio with similar business models and drivers ▪ Strengthen our capacity to accelerate growth ▪ Attractive valuation 9
Slide 10: Attractive valuation
Attractive valuation Purchase price (EV) ▪ Buyer: Yokohama ▪ Offer acknowledges Trelleborg Wheel EUR 2,100 M Systems’ leading position and journey SEK ~22,000 M towards 15% EBIT-margin ▪ Cash and debt free basis ▪ Attractive valuation when compared to ▪ Included in the purchase price (EV) is an earn
Slide 11: Exceptional growth and high margins
Exceptional growth and high margins Trelleborg Wheel Systems1 ▪ Organic sales: +33% SEK M Q1 2022 Q1 2021 Change, % Net sales 3 365 2 397 40 ▪ Strong demand for agri tires and material Organic, % 33 6 handling & construction tires in all regions Structural, % - - ▪ Sales in the Americas particularly
Slide 12: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2022 Q&A 12
Slide 13: Strong organic sales trend
Strong organic sales trend Sales development continuing operations +22% 7 095 January – March (%) 5 822 Organic 13 Structural 2 Currency 7 Q1 21 Q1 22 Total 22 13
Slide 14: Strong sales trend continues
Strong sales trend continues Target: 5-8% annual sales growth with constant currencies over a business cycle1 % 40% 32 30% 20% 17 15 10 10% 5 6 6 7 5 0% -2 -3 -10% -9 -20% -18 19 19 19 19 20 20 20 20 21 21 21 21 22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Of which organic growth, %: 2 3 2 1 -5 -21 -10
Slide 15: Sales development
Sales development Continuing operations, R12M SEK M SEK M 8 000 30 000 7 000 27 500 6 000 25 000 5 000 22 500 4 000 20 000 3 000 17 500 2 000 15 000 1 000 12 500 0 10 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 Quarter (LHS) R12M (RHS) 15
Slide 16: Highest quarterly EBIT and margin to date
Highest quarterly EBIT and margin to date EBIT and margin development1 EBIT EBIT-margin +25% +0.4 1 230 16.9 17.3 982 Q1 21 Q1 22 Q1 21 Q1 22 16 1 Excl. items affecting comparability, continuing operations
Slide 17: Highest R12M EBIT and margin to date
Highest R12M EBIT and margin to date EBIT and margin, R12M1 SEK M % 4 500 18 4 000 16 3 500 14 3 000 12 2 500 10 2 000 8 1 500 6 1 000 4 500 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 ROS % EBIT 17 1 Excl. items affecting comparability
Slide 18: Profit & loss statement
Profit & loss statement SEK M Q1 2022 Q1 2021 Change, % Net sales 7 095 5 822 22 EBIT, excluding items affecting comparability 1 230 982 25 EBIT- margin, % 17.3 16.9 Items affecting comparability -25 105 -23 EBIT 1 205 1 087 11 Financial income and expenses -45 -35 -29 Profit before tax 1 160 1 052
Slide 19: Strong EPS improvement
Strong EPS improvement Earnings per share1 Group, Total Continuing operations, excluding items affecting comparability % +18% % +21% 6 4.81 4 3.25 4.08 2.68 4 2 2 0 0 Q1 21 Q1 22 Q1 21 Q1 22 19 1 No dilution effects
Slide 20: Cash flow reflects higher business activities
Cash flow reflects higher business activities Operating cash flow1 268 SEK M Q1 2022 Q1 2021 Change -153 EBITDA 1 548 1 280 268 484 -103 0 Working capital -912 -759 -153 328 Net capex -227 -124 -103 -168 Leasing -76 -76 0 Other -5 163 -168 Operating cash flow 328 484 -156 Q1 21 EBITDA Working Net Le
Slide 21: Cash conversion impacted by higher sales
Cash conversion impacted by higher sales Operating cash flow, R12M1 SEK M % 6 000 140 128 5 500 119 122 121 120 5 000 99 101 4 500 96 100 4 000 88 82 87 85 83 76 76 3 500 70 70 80 3 000 73 2 500 60 2 000 40 1 500 1 000 20 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 18 18 18 19 19 1
Slide 22: Gearing and leverage development
Gearing and leverage development R12M, Group1 % X 60 2.5 2.5 51 52 50 2.0 1.8 1.8 1.7 40 37 37 1.6 35 35 1.5 1.5 30 1.2 25 1.1 23 1.0 20 10 0.5 0 0.0 15 16 17 18 19 20 21 22 15 16 17 18 19 20 21 22 Q1 Q1 Net debt / Equity Net debt / EBITDA 22 1 From 2019 gearing and leverage are impacted by IFRS 16
Slide 23: Positive ROCE development continues
Positive ROCE development continues Return on capital employed, R12M, % 17.5 15.7 15.0 15.3 15.1 15.1 14.7 14.9 15.0 14.5 14.1 13.9 13.5 13.5 12.9 12.5 12.0 11.6 11.0 11.2 10.0 7.5 5.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 18 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 23 1 Excl. it
Slide 24: Financial guidelines for full-year 2022
Financial guidelines for full-year 2022 Total group (including Assets held for sale) ▪ Capex: SEK ~1.4 Bn ▪ Restructuring costs: SEK ~300 M ▪ Amortization of intangible assets SEK ~300 M ▪ Underlying tax rate: ~25 percent 24
Slide 25: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2022 Q&A 25
Slide 26: Strong growth and profitability
Strong growth and profitability Q1 2022 financial summary1 ▪ Sales at SEK 7 095 M, an increase of 22 percent ▪ Organic sales +13 percent, currency +7 percent, M&A +2 percent ▪ EBIT grew by 25 percent to SEK 1 230 M, corresponding to a margin of 17.3 percent ▪ Highest quarterly sales, EBIT and margin
Slide 27: Outlook Q2 2022
Outlook Q2 2022 ▪ Demand is expected to be on a par with the first quarter of 2022, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 27
Slide 28: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2022 Q&A 28
Slide 29: 29
29