Slide 1: Q4, October-December 2023
Q4, October-December 2023 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q1 2024 Q&A 2
Slide 3: A solid end to the year
A solid end to the year Q4 2023 financial summary1 ▪ Sales at SEK 8 421 M, an increase of 4 percent ▪ Organic sales unchanged, M&A +3 percent, currency +1 percent ▪ EBITA grew by 6 percent to SEK 1 424 M, corresponding to a margin of 16.9 percent ▪ Items affecting comparability at SEK -260 M, of whi
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Oct - Dec 23 Oct - Dec 22 0% 15% Europe Share of sales1 Oct - Dec 23 Oct - Dec 22 46% 2% 13% North- and South America Share of sales1 Oct - Dec 23 Oct - Dec 22 35% -1% 18% Asia and rest of the world Share of sales1 Oct
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q1 2024 Q&A 5
Slide 6: Strong profit development
Strong profit development Trelleborg Industrial Solutions1 ▪ Organic sales: -1%, M&A +2% SEK M Q4 2023 Q4 2022 Change, % Net sales 3 766 3 691 2 ▪ Still weak sales for residential construction Organic, % -1 18 and certain industrial segments Structural, % 2 1 ▪ Sales to marine segment remained stron
Slide 7: Solid performance with mixed demand
Solid performance with mixed demand Trelleborg Sealing Solutions1 ▪ Organic sales: +1%, M&A +4% SEK M Q4 2023 Q4 2022 Change, % ▪ Sales to general industry declined in most Net sales 4 551 4 303 6 markets while automotive demand increased Organic, % 1 12 ▪ Continued strong sales to aerospace Structu
Slide 8: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ / SEK M Tonnes, CO₂1 (intensity)1 30 000 28 675 5 26 664 25 623 25 000 -14% 4 21 243 3.5 20 000 18 696 3.1 3.0 3 15 000 2.4 2.2 2 10 000 1 5 000 0 0 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 1 During Q
Slide 9: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity & LWC rate Mwh1 +8 p.p. LWC1,2 100 000 50 46% 54% 90 000 45 79 044 79 378 78 249 77 537 80 000 73 412 40 37 36 70 000 35 60 000 30 29 51 239 27 26 50 538 49 879 50 000 25 41 965 40 000 34 039 20 30 000 15 20 0
Slide 10: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q1 2024 Q&A 10
Slide 11: Unchanged organic sales development
Unchanged organic sales development Sales development continuing operations +4% October – December (%) 8 113 8 421 Organic 0 Structural 3 Currency 1 Total 4 Q4 22 Q4 23 +14% January – December (%) 34 286 30 095 Organic 2 Structural 7 Currency 5 Total 14 12M 22 12M 23 11
Slide 12: Sales growth reflects tough comps
Sales growth reflects tough comps Target: 8% annual sales growth with constant currencies over a business cycle1 % 40% 32 30% 23 20% 17 15 17 16 13 12 10 8 10% 5 3 0% -3 -10% 20 21 21 21 21 22 22 22 22 23 23 23 23 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Of which organic growth, %: -4 5 31 16 9 13 11
Slide 13: Sales development
Sales development Continuing operations, R12M SEK M SEK M 9 000 35 000 8 000 30 000 7 000 25 000 6 000 5 000 20 000 4 000 15 000 3 000 10 000 2 000 5 000 1 000 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 Quarter (LHS) R12M (RHS) 13
Slide 14: Highest fourth quarter margin to date
Highest fourth quarter margin to date EBITA and margin development1 +0.4 p.p. +6% 1 340 1 424 16.5 16.9 EBITA Oct - Dec EBITA % Q4 22 Q4 23 Q4 22 Q4 23 +13% -0.2 p.p. 6 002 17.7 17.5 5 334 EBITA Jan - Dec EBITA % 12M 22 12M 23 12M 22 12M 23 14 1 Excl. items affecting comparability, continuing operat
Slide 15: Highest R12M EBITA to date
Highest R12M EBITA to date EBITA and margin, R12M1 SEK M % 7 000 20 +13% 6 000 18 5 000 16 4 000 3 000 14 2 000 12 1 000 0 10 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 EBITA % EBITA 15 1 Excluding items affecting comparability, continuing o
Slide 16: Profit & loss statement
Profit & loss statement SEK M Q4 2023 Q4 2022 Change, % 12M 2023 12M 2022 Change, % Net sales 8 421 8 113 4 34 286 30 095 14 EBITA, excluding items affecting comparability 1 424 1 340 6 6 002 5 334 13 EBITA-margin, % 16.9 16.5 17.5 17.7 EBIT, excluding items affecting comparability 1 304 1 239 5 5 5
Slide 17: EPS improvement in continuing operations
EPS improvement in continuing operations Earnings per share1 % % -27% +20% 6 4.66 6 Group, Total 4 3.40 4.08 Continuing operations, excl. items Oct - Dec 4 3.40 affecting comparability 2 2 0 0 Q4 22 Q4 23 Q4 22 Q4 23 % % +21% +102% 60 20 16.64 Group, Total 13.80 Continuing operations, excl. items 40
Slide 18: Second best Q4 cash flow, but tough comps
Second best Q4 cash flow, but tough comps Operating cash flow1 136 1 678 SEK M Q4 2023 Q4 2022 Change -213 -84 1 321 EBITDA 1 790 1 654 136 -52 -144 Working capital 312 525 -213 Net capex -498 -414 -84 Leasing -139 -87 -52 Other -144 0 -144 Operating cash flow 1 321 1 678 -357 Q4 22 EBITDA Working N
Slide 19: Cash conversion remains at a high level
Cash conversion remains at a high level Operating cash flow, R12M1 SEK M % 6 000 140 128 5 500 119 122 121 120 5 000 99 101 96 4 500 99 87 85 92 100 4 000 76 88 3 500 69 74 75 80 63 3 000 2 500 60 2 000 40 1 500 1 000 20 500 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 21 21
Slide 20: Net cash position intact
Net cash position intact Gearing and leverage, R12M, Group1 % 2.5 60 56 2.5 2.4 52 50 2.0 1.8 1.8 1.7 40 37 35 35 1.5 1.2 30 25 1.0 20 10 0.5 0 0.0 -10 -6 -0.2 -0.5 17 18 19 20 21 22 23 17 18 19 20 21 22 23 Net debt / Equity Net debt / EBITDA 20 1 From 2019 gearing and leverage are impacted by IFRS
Slide 21: ROCE impacted by acquisitions
ROCE impacted by acquisitions Return on capital employed, R12M, % 17.5 16.5 16.1 15.9 15.7 14.9 15.1 14.9 15.0 13.9 13.9 13.5 12.9 13.0 12.9 12.5 12.0 11.6 11.0 11.2 10.0 7.5 5.0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 21 1 Excluding item
Slide 22: Financial guidelines for full-year 2024
Financial guidelines for full-year 2024 Continuing operations ▪ Capex: SEK ~1.6 Bn ▪ Restructuring costs: SEK ~250 M ▪ Amortization of intangible assets SEK ~500 M ▪ Underlying tax rate: ~25 percent (previously 26 percent) 22
Slide 23: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q1 2024 Q&A 23
Slide 24: A solid end to the year
A solid end to the year Q4 2023 financial summary1 ▪ Sales at SEK 8 421 M, an increase of 4 percent ▪ Organic sales unchanged, M&A +3 percent, currency +1 percent ▪ EBITA grew by 6 percent to SEK 1 424 M, corresponding to a margin of 16.9 percent ▪ Items affecting comparability at SEK -260 M, of whi
Slide 25: Outlook Q1 2024
Outlook Q1 2024 ▪ Demand is expected to be on a par with the fourth quarter of 2023, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 25
Slide 26: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q1 2024 Q&A 26
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