Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q3 2012 Earnings Presentation
30 slides from Trelleborg Ab Class B's earnings presentation, Oct 24, 2012
Slide 1: Trelleborg interim report July – September 2012
Trelleborg interim report July – September 2012 Peter Nilsson, President & CEO Ulf Berghult, CFO
Slide 2: Agenda
Agenda ■ Highlights ■ Business areas ■ TrelleborgVibracoustic ■ Financials ■ Summary & Q4 2012 outlook ■ Q&A TRELLEBORG GROUP 2 October 24, 2012
Slide 3: Satisfactory results in tough business climate
Satisfactory results in tough business climate Q3 2012 highlights ■ Satisfactory result for the quarter, albeit influenced by the weaker economy ■ Mixed sales development; North America and parts of Asia good, Europe generally weak ■ Continued investments in emerging markets impact results and capex
Slide 4: Recap of Q3 2012 events
Recap of Q3 2012 events ■ The formation of the joint venture in antivibration solutions completed – TrelleborgVibracoustic operational from July 3rd ■ Trelleborg strengthened its global printing solutions position by acquiring a printing blankets business in Brazil – instantly No. 1 in Latin America
Slide 5: Margin incl. TBVC above 12%
Margin incl. TBVC above 12% Group financial highlights Q3 20121 Net sales SEK M Q3 2012 Q3 2011 Change ■ Organic sales: -2% ■ Currency effects: -2% Net sales 4,961 5,187 -4% ■ Mixed geographical sales EBITDA2 685 778 -12% development, Europe dipping Margin, % 13.8 15.0 -120bp Earnings Operating prof
Slide 6: Agenda
Agenda ■ Highlights ■ Business areas ■ TrelleborgVibracoustic ■ Financials ■ Summary & Q4 2012 outlook ■ Q&A TRELLEBORG GROUP 6 October 24, 2012
Slide 7: Still strong margins
Still strong margins Trelleborg Sealing Solutions1 SEK M Q3 2012 Q3 2011 Change Net sales 1,706 1,864 -8% ■ Organic sales: -6% ■ Strong margins, despite inventory EBITDA2 385 472 -18% adjustments Margin, % 22.5 25.4 -290bp ■ Weak trend in Europe, stable in Operating profit2 343 422 -19% N.A. while A
Slide 8: Margins upheld in weaker OEM market
Margins upheld in weaker OEM market Trelleborg Wheel Systems1 SEK M Q3 2012 Q3 2011 Change Net sales 852 953 -11% ■ Organic sales: -7% ■ Demand hampered by production EBITDA2 113 123 -8% cuts at OEM customers Margin, % 13.2 12.9 30bp ■ Europe softer, North America stable Operating profit2 88 98 -10%
Slide 9: Mixed development
Mixed development Trelleborg Engineered Systems1 SEK M Q3 2012 Q3 2011 Change Net sales 2,466 2,448 1% ■ Organic sales: +3% ■ Good development in project EBITDA2 217 269 -19% business Margin, % 8.8 11.0 -220bp ■ General industry weak Operating profit2 132 183 -28% ■ Mix effects and inventory Margin,
Slide 10: Agenda
Agenda ■ Highlights ■ Business areas ■ TrelleborgVibracoustic ■ Financials ■ Summary & Q4 2012 outlook ■ Q&A TRELLEBORG GROUP 10 October 24, 2012
Slide 11: Integration developing according to plan
Integration developing according to plan TrelleborgVibracoustic SEK M Q3 2012 Proforma Change Q3 2011 Net sales 3,375 3,437 -2% ■ Organic sales: +4% ■ Growth in N.A., Europe down, Operating profit1 173 199 -13% Asia mixed Margin, % 5.0 5.7 -70bp ■ Start-up and integration costs Items affecting compa
Slide 12: Agenda
Agenda ■ Highlights ■ Business areas ■ TrelleborgVibracoustic ■ Financials ■ Summary & Q4 2012 outlook ■ Q&A TRELLEBORG GROUP 12 October 24, 2012
Slide 13: Group sales, Q3 & 9M 2012
Group sales, Q3 & 9M 2012 SEK M Q3 2012 Q3 2011 Change, % Organic, % 9M 2012 9M 2011 Change, % Trelleborg Sealing Solutions 1,706 1,864 -8 -6 5,623 5,582 1 Trelleborg Wheel Systems 852 953 -11 -7 3,032 2,909 4 Trelleborg Engineered Systems 2,466 2,448 1 3 7,910 7,686 3 Others 2 30 6 97 Eliminations
Slide 14: Sales development
Sales development1 Organic sales: -2%, Currency: -2% % 40 20 0 -20 -40 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Organic Structure Currency Total TRELLEBORG GROUP Note: 14 October 24, 2012 1 Continuing operations
Slide 15: Sales development marked by weak Europe
Sales development marked by weak Europe Group net sales R12M and by quarter1 SEK M SEK M 6 000 30 000 5 000 25 000 4 000 20 000 3 000 15 000 2 000 10 000 1 000 5 000 0 0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Quarter (LHS) R12M (RHS) TRELLEBORG GROU
Slide 16: Group operating profit, Q3 & 9M 2012
Group operating profit, Q3 & 9M 2012 SEK M Q3 2012 Q3 2011 Change, % 9M 2012 9M 2011 Change, % Trelleborg Sealing Solutions 343 422 -19 1,236 1,194 4 Trelleborg Wheel Systems 88 98 -10 377 302 25 Trelleborg Engineered Systems 132 183 -28 463 613 -24 Others -1 -20 -21 -64 Group items -34 -71 -159 -19
Slide 17: Operating margins, Q3 & 9M 2012
Operating margins, Q3 & 9M 2012 Percent Q3 2012 Q3 2011 Change 9M 2012 9M 2011 Change Trelleborg Sealing Solutions 20.0 22.6 -260bp 21.9 21.4 50bp Trelleborg Wheel Systems 10.4 10.3 10bp 12.4 10.4 200bp Trelleborg Engineered Systems 5.4 7.5 -210bp 5.9 8.0 -210bp Others Group items Continuing operati
Slide 18: Rolling EBITDA margin still at high levels
Rolling EBITDA margin still at high levels Group EBITDA and margin R12M1,2 SEK M % 3 500 17,5 3 000 15,0 2 500 12,5 2 000 10,0 1 500 7,5 1 000 5,0 500 2,5 0 0,0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 EBITDA (LHS) EBITDA margin (RHS) TRELLEBORG GROUP
Slide 19: Financial highlights, Group total
Financial highlights, Group total Key ratios, SEK M Q3 2012 Q3 2011 Change, % 9M 2012 9M 2011 Change, % Operating profit, Group total 591 621 -5 2,450 2,230 10 Financial income and expenses -38 -54 -30 -152 -146 4 Profit before tax 552 567 -3 2,297 2,084 10 Tax, Group total -154 -147 5 -497 -512 -3
Slide 20: Cash flow improves Y/Y
Cash flow improves Y/Y Operating cash flow by quarter and R12M1 SEK M SEK M 800 2 800 700 2 500 625 584 600 2 200 500 1 900 400 1 600 300 1 300 200 1 000 100 700 0 400 -100 100 -200 -200 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Quarter (LHS) R12M (RHS
Slide 21: Solid capital structure
Solid capital structure Net debt / EBITDA and net gearing development Net debt / EBITDA Net gearing x % 10 150 8 120 6 90 4 60 41 2 30 1,8 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 09 09 09 09 10 10 10 1
Slide 22: Earnings per share on par with last year
Earnings per share on par with last year Earnings per share1,2 SEK 3,00 2,50 2,00 1,55 1,50 1,50 1,00 0,50 0,00 -0,50 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 EPS EPS excl. items affecting comparability R12M1 5.80 3.70 2.95 2.60 2.50 3.40 3.85 4.50 4.
Slide 23: Pro forma key data for TrelleborgVibracoustic
Pro forma key data for TrelleborgVibracoustic Acquisition balance still pending, pro forma data subject to changes Key ratios, SEK M Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2010 Q2 2012 Q3 2012 Net sales 2,826 3,038 3,047 3,144 3,298 3,416 3,437 3,437 3,678 3,640 3,375 Ope
Slide 24: Agenda
Agenda ■ Highlights ■ Business areas ■ TrelleborgVibracoustic ■ Financials ■ Summary & Q4 2012 outlook ■ Q&A TRELLEBORG GROUP 24 October 24, 2012
Slide 25: Satisfactory results in tough business climate
Satisfactory results in tough business climate Q3 2012 highlights ■ Satisfactory result for the quarter, albeit influenced by the weaker economy ■ Mixed sales development; North America and parts of Asia good, Europe generally weak ■ Continued investments in emerging markets impact results and capex
Slide 26: Continued focus on growth and excellence
Continued focus on growth and excellence 2012 priorities ■ Manage weaker market conditions ■ Continued focus on profitable growth, selected segments and geographies ■ Manage margin development through operational excellence ■ Continued portfolio management to improve leading positions ■ Successful e
Slide 27: Outlook Q4 2012
Outlook Q4 2012 ■ Demand in the fourth quarter is expected to be lower than the third quarter of 2012, adjusted for seasonal variations TRELLEBORG GROUP 27 October 24, 2012
Slide 28: Agenda
Agenda ■ Highlights ■ Business areas ■ TrelleborgVibracoustic ■ Financials ■ Summary & Q4 2012 outlook ■ Q&A TRELLEBORG GROUP 28 October 24, 2012
Slide 29: www.trelleborg.com
www.trelleborg.com
Slide 30: 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