Slide 1: Q1, January-March 2024
Q1, January-March 2024 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2024 Q&A 2
Slide 3: Improved margin despite slightly lower sales
Improved margin despite slightly lower sales Q1 2024 financial summary1 ▪ Sales at SEK 8 234 M, a decrease of 5 percent ▪ Organic sales -3 percent, M&A -2 percent, currency unchanged ▪ The Easter Holiday impacted organic growth negatively by close to 2 percent ▪ EBITA at SEK 1 490 M, corresponding t
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Jan - Mar 24 Jan - Mar 23 -3% 7% Europe Share of sales1 Jan - Mar 24 Jan - Mar 23 46% 0% 7% North- and South America Share of sales1 Jan - Mar 24 Jan - Mar 23 35% -10% 12% Asia and rest of the world Share of sales1 Jan
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2024 Q&A 5
Slide 6: Improved profitability despite lower sales
Improved profitability despite lower sales Trelleborg Industrial Solutions1 ▪ Organic sales: -3%, M&A +1% SEK M Q1 2024 Q1 2023 Change, % Net sales 3 721 3 840 -3 ▪ Residential construction and certain industrial segments continue to be soft Organic, % -3 8 ▪ Sales to LNG customers increased Structu
Slide 7: Inventory adjustment in the industry
Inventory adjustment in the industry Trelleborg Medical Solutions1 ▪ Organic sales: -11% SEK M Q1 2024 Q1 2023 Change, % Net sales 583 653 -11 ▪ Drawn-out inventory adjustment phase due to pandemic-related inventory levels Organic, % -11 13 ▪ EBITA more or less unchanged, while the Structural, % - 4
Slide 8: Growth and profit impacted by Easter Holiday
Growth and profit impacted by Easter Holiday Trelleborg Sealing Solutions1 ▪ Organic sales: -2% SEK M Q1 2024 Q1 2023 Change, % ▪ Fewer working days due to Easter holiday, Net sales 4 102 4 214 -3 which fell within this quarter unlike in 2023 Organic, % -2 4 ▪ Sales to general industry declined in m
Slide 9: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ 35 000 30 047 30 000 28 411 25 000 23 603 20 775 20 000 18 187 15 000 10 000 5 000 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 9
Slide 10: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity Mwh +27 p.p. 100 000 64% 91% 90 000 79 115 78 845 77 780 76 968 76 340 80 000 69 757 70 000 60 000 50 538 51 239 49 879 50 000 41 965 40 000 30 000 20 000 10 000 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Renewable and f
Slide 11: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2024 Q&A 11
Slide 12: Organic sales impacted by Easter holiday
Organic sales impacted by Easter holiday Sales development continuing operations -5% January – March 2024 (%) 8 711 8 234 Organic -3 Structural -2 Currency 0 Q1 23 Q1 24 Total -5 12
Slide 13: A more subdued sales start of the year
A more subdued sales start of the year 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% -10% -5 21 21 21 21 22 22 22 22 23 23 23 23 24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Of which organic growth, %: 5 31 16 9 13 1
Slide 14: 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 Quarter (LHS) R12M (RHS) 14
Slide 15: Margin continues to improve
Margin continues to improve EBITA and margin development1 +0.6 p.p. -2% 1 528 1 490 17.5 18.1 EBITA Jan - Mar EBITA % Q1 23 Q1 24 Q1 23 Q1 24 15 1 Excl. items affecting comparability, continuing operations
Slide 16: R12M EBITA – continued improvement
R12M EBITA – continued improvement EBITA and margin, R12M1 SEK M % 7 000 20 +7% 6 000 18 5 000 16 4 000 3 000 14 2 000 12 1 000 0 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 EBITA % EBITA 16 1 Excluding items affecting comparability, conti
Slide 17: Profit & loss statement
Profit & loss statement SEK M Q1 2024 Q1 2023 Change, % Net sales 8 234 8 711 -5 EBITA, excluding items affecting comparability 1 490 1 528 -2 EBITA-margin, % 18.1 17.5 EBIT, excluding items affecting comparability 1 379 1 411 -2 EBIT-margin, % 16.8 16.2 Items affecting comparability -55 -49 EBIT 1
Slide 18: EPS improvement in continuing operations
EPS improvement in continuing operations Earnings per share1 % -24% % +16% 6 5.33 6 4.06 4.23 4 4 3.66 Continuing operations, excl. items Group, Total Jan - Mar affecting comparability 2 2 0 0 Q1 23 Q1 24 Q1 23 Q1 24 18 1 No dilution effects
Slide 19: Significant working capital improvement
Significant working capital improvement Operating cash flow1 SEK M Q1 2024 Q1 2023 Change EBITDA 1 834 1 856 -22 Working capital -671 -821 150 Net capex -356 -385 29 150 29 0 12 718 549 Leasing -85 -85 0 -22 Other -4 -16 12 Operating cash flow 718 549 169 Q1 23 EBITDA Working Net Leasing Other Q1 24
Slide 20: 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 85 95 100 92 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20 20 20 20 21 21 21
Slide 21: 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 1.7 40 35 35 1.5 1.2 30 25 1.0 20 10 0.5 0 0.0 -2 -0.1 -10 -6 -0.2 -0.5 18 19 20 21 22 23 24 18 19 20 21 22 23 24 Q1 Q1 Net debt / Equity Net debt / EBITDA 21 1 From 2019 gearing and leverage are impacted b
Slide 22: 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 12.9 13.0 12.9 12.7 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 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 22 1 Excluding item
Slide 23: 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 23
Slide 24: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2024 Q&A 24
Slide 25: Improved margin despite slightly lower sales
Improved margin despite slightly lower sales Q1 2024 financial summary1 ▪ Sales at SEK 8 234 M, a decrease of 5 percent ▪ Organic sales -3 percent, M&A -2 percent, currency unchanged ▪ The Easter Holiday impacted organic growth negatively by close to 2 percent ▪ EBITA at SEK 1 490 M, corresponding t
Slide 26: Outlook Q2 2024
Outlook Q2 2024 ▪ Demand is expected to be on a par with the first quarter of 2024, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 26
Slide 27: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q2 2024 Q&A 27
Slide 28: 28
28