Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2021 Earnings Presentation
26 slides from Trelleborg Ab Class B's earnings presentation, July 2021
Slide 1: Q2 Apr-Jun 2021
Q2 Apr-Jun 2021 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Highlights, Business areas, Financials
Highlights Business areas Financials Summary & Outlook Q3 2021 Q&A 2
Slide 3: Continued strong performance
Continued strong performance Q2 2021 financial summary ▪ Sales at SEK 8 637 M, an increase of 23 percent ▪ Organic sales increased by 31 percent, negative F/X of 8 percent ▪ EBIT at SEK 1 387 M, corresponding to a margin of 16.1 percent 1 ▪ Best quarterly EBIT to date ▪ Items affecting comparability
Slide 4: Organic sales development by geography
Organic sales development by geography 1 Organic sales continuing operations Continuing operations Total Apr-Jun 21 Apr-Jun 20 31% -20% Western Europe Share Apr-Jun 21 Apr-Jun 20 47% 31% -22% North America Share Apr-Jun 21 Apr-Jun 20 24% 18% -24% Other Europe Share Apr-Jun 21 Apr-Jun 20 9% 43% -15%
Slide 5: Highlights, Business areas, Financials
Highlights Business areas Financials Summary & Outlook Q3 2021 Q&A 5
Slide 6: Stronger margins on widespread growth
Stronger margins on widespread growth 1 Trelleborg Industrial Solutions ▪ Organic sales: +23% SEK M Q2 2021 Q2 2020 Change, % ▪ Sales grew in all major geographies Net sales 2 866 2 461 16 Organic, % 23 -18 ▪ Sales to most market segments Structural, % 1 4 increased, especially in auto and construct
Slide 7: Significant growth in all regions
Significant growth in all regions 1 Trelleborg Sealing Solutions ▪ Organic sales: +37% SEK M Q2 2021 Q2 2020 Change, % ▪ General industry and automotive Net sales 3 155 2 498 26 grew in all regions Organic, % 37 -22 ▪ Healthcare & medical saw overall Structural, % - 2 growth, mixed geographic pictur
Slide 8: High demand for all tire categories
High demand for all tire categories 1 Trelleborg Wheel Systems ▪ Organic sales: +32% SEK M Q2 2021 Q2 2020 Change, % ▪ Significant increase in demand for Net sales 2 557 2 046 25 agri- and material handling & Organic, % 32 -18 construction tires Structural,% - 0 ▪ Some freight and supply challenges
Slide 9: Highlights, Business areas, Financials
Highlights Business areas Financials Summary & Outlook Q3 2021 Q&A 9
Slide 10: Strong organic trend but negative F/X
Strong organic trend but negative F/X Sales development continuing operations +23% 8 637 7 031 April - June [%] Organic 31 Structural 0 Currency -8 Total 23 Q2 20 Q2 21 +9% 16 856 January - June [%] 15 513 Organic 17 Structural 0 Currency -8 Total 9 6M 20 6M 21 10
Slide 11: Strong sales trend
Strong sales trend1 Target: 5-8% annual sales growth with constant currencies over a business cycle % 40% 31 30% 20% 10% 5 7 5 5 4 3 3 3 0 0% -10% -6 -7 -20% -18 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 18 18 19 19 19 19 20 20 20 20 21 21 Of which organic growth, %: 4 5 2 2 0 -1 -2 -8 -20 -7 0 5 31
Slide 12: Sales development
Sales development Continuing operations, R12M SEK M SEK M 9 000 35 000 8 000 32 500 7 000 30 000 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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 Quarter
Slide 13: Strong margin improvement
Strong margin improvement EBIT and margin development1 EBIT EBIT-margin +58% +29% 1 387 16.1 12.5 878 Apr – Jun Q2 20 Q2 21 Q2 20 Q2 21 1Continuing operations, Excluding items affecting comparability 13
Slide 14: Highest R12M EBIT and margin to date
Highest R12M EBIT and margin to date 1 EBIT and margin, R12M SEK M % 5 000 16 4 500 14 4 000 12 3 500 3 000 10 2 500 8 2 000 6 1 500 4 1 000 500 2 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 17 17 18 18 18 18 19 19 19 19 20 20 20 20 21 21 ROS % EBIT 1 Continuing operations, Excluding i
Slide 15: Profit & loss statement
Profit & loss statement SEK M Q2 2021 Q2 2020 Change, % 6M 2021 6M 2020 Change, % Continuing operations Net sales 8 637 7 031 23 16 856 15 513 9 Change total, % 23 -18 9 -10 Organic sales, % 31 -20 17 -14 Structural change, % 0 2 0 2 Currency effects, % -8 0 -8 2 EBIT, excluding items affecting comp
Slide 16: Very strong EPS improvement
Very strong EPS improvement Earnings per share, % +73% +64% 4.0 3.74 3.66 3.5 3.0 2.5 2.28 2.11 2.0 1.5 1.0 0.5 0.0 Group, Total Group excl. items affecting comparability1 Q2 20 Q2 21 1No dilution effects arose. 16
Slide 17: Solid cash flow generation despite WC build-up
Solid cash flow generation despite WC build-up 1 Operating cash flow 460 -32 0 1 403 -424 1 279 -128 Q2 20 EBITDA Net capex Leasing Working Other Q2 21 capital 1 Continuing operations, excluding items affecting comparability 17
Slide 18: Cash conversion above 100 percent
Cash conversion above 100 percent 1 Operating cash flow, R12M SEK M % 5 500 128 112 140 121 124 128 5 000 103 120 4 500 94 91 96 95 85 100 4 000 87 81 82 81 83 76 3 500 80 3 000 60 2 500 2 000 40 1 500 20 1 000 0 500 0 -20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 17 17 17 18 18 18 18 19 19
Slide 19: Gearing and leverage development
Gearing and leverage development1 R12M, Group Total % X 55 52 3.0 2.9 51 50 2.5 45 44 2.5 40 37 37 2.0 35 35 2.0 35 32 32 1.7 1.7 1.7 30 1.6 1.6 1.5 1.5 25 20 1.0 15 10 0.5 5 0 0.0 14 15 16 17 18 19 20 21 21 14 15 16 17 18 19 20 21 21 Q1 Q2 Q1 Q2 Net debt / Equity Net debt / EBITDA 1From 2019 and fo
Slide 20: Financial guidelines for full-year 2021
Financial guidelines for full-year 2021 ▪ Capex: SEK ~1.4 Bn ▪ Restructuring costs: SEK ~400 M (previous guidance SEK ~500 M) ▪ Underlying tax rate: ~25% ▪ Amortization of intangible assets ~400 M 20
Slide 21: Highlights, Business areas, Financials
Highlights Business areas Financials Summary & Outlook Q3 2021 Q&A 21
Slide 22: Continued strong performance
Continued strong performance Q2 2021 financial summary ▪ Sales at SEK 8 637 M, an increase of 23 percent ▪ Organic sales increased by 31 percent, negative F/X of 8 percent ▪ EBIT at SEK 1 387 M, corresponding to a margin of 16.1 percent 1 ▪ Best quarterly EBIT to date ▪ Items affecting comparability
Slide 23: Balancing challenges and opportunities
Balancing challenges and opportunities 2021 priorities ▪ Manage supply chain, logistic challenges and inflation ▪ Manage market conditions in the wake of Covid-19 ▪ Continued portfolio management to improve leading positions ▪ Continued focus on operational excellence, efficiency measures and footpr
Slide 24: Outlook Q3 2021
Outlook Q3 2021 ▪ Demand is expected to be on a par with the second quarter of 2021, adjusted for seasonal variations ▪ Uncertainty regarding the pandemic’s impact on the coming quarters remains 24
Slide 25: Highlights, Business areas, Financials
Highlights Business areas Financials Summary & Outlook Q3 2021 Q&A 25
Slide 26: Trelleborg
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