Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q4 2011 Earnings Presentation
37 slides from Trelleborg Ab Class B's earnings presentation, Feb 15, 2012
Slide 1: Trelleborg year-end report 2011
Trelleborg year-end report 2011 Peter Nilsson, President & CEO Carolina Dybeck Happe, CFO February 15, 2012
Slide 2: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q1 2012 ■ Q&A TRELLEBORG GROUP 2 February 15, 2012
Slide 3: Continued increase in demand
Continued increase in demand Q4 2011 highlights ■ Good quarter in all but one market segment ■ Organic sales continued to increase ■ Good cash flow despite high capex level ■ Low capacity utilization and production disruptions in Offshore oil/gas segment within business area Engineered Systems ■ Aut
Slide 4: Record year
Record year 2011 highlights ■ Record year, both in terms of sales and profits ■ Increased sales in all but one market segment ■ Increased M&A activity ■ Improved positions and structural changes ■ Financial targets achieved ■ Good cash flow TRELLEBORG GROUP 4 February 15, 2012
Slide 5: Continued increase in demand
Continued increase in demand Group financial highlights Q4 20111 Net sales SEK M Q4 2011 Q4 2010 Change ■ Organic sales: +3% Net sales 7,106 6,852 4% ■ Currency effects: -1% EBITDA2 757 761 -1% Margin, % 10.6 11.0 -40bp Earnings ■ Improved earnings Operating profit2 529 518 2% ■ Low capacity utiliza
Slide 6: Increased demand in all segments
Increased demand in all segments Group financial highlights 20111 Net sales SEK M 2011 2010 Change ■ Organic sales: +11% Net sales 29,106 27,196 7% ■ Currency effects: -6% EBITDA 2 3,538 3,304 7% Earnings Margin, % 12.1 12.1 0bp ■ Higher volumes 2 Operating profit 2,635 2,286 15% ■ Improved structur
Slide 7: Increased M&A activity – recent deals
Increased M&A activity – recent deals Unit Business Area Activity Sales, SEK M Acquisitions Watts Tyre Group Trelleborg Wheel Systems Industrial tires globally 300 Lutz Sales Trelleborg Sealing Solutions Precisions seals in North America 100 PPL Polyurethane Products Trelleborg Engineered Systems Po
Slide 8: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q1 2012 ■ Q&A TRELLEBORG GROUP 8 February 15, 2012
Slide 9: Good performance in all but one segment
Good performance in all but one segment Trelleborg Engineered Systems1 SEK M Q4 2011 Q4 2010 Change Net sales 2,339 2,541 -8% ■ Organic sales: -9% ■ Good performance in all but one EBITDA2 136 294 -54% market segment Margin, % 5.8 11.5 -570bp ■ Lower capacity and production Operating profit2 58 215
Slide 10: Improved efficiency and margins
Improved efficiency and margins Trelleborg Automotive1 SEK M Q4 2011 Q4 2010 Change ■ Net sales 2,288 2,188 5% Organic sales: +9% ■ Record Q4 profits and margins EBITDA2 236 214 10% ■ Positive mix effect Margin, % 10.2 9.6 60bp ■ Improved efficiency Operating profit2 165 121 36% ■ Cash flow impacted
Slide 11: 18% of Business Area Automotive to remain within the Group post JV
18% of Business Area Automotive to remain within the Group post JV BA Automotive overview post JV Trelleborg BA Automotive; sales split 2011A Divestments in Q3 ‘11 and Q1 ‘12 7% Planned Joint Venture 75% Transfer within Group 1 18% TRELLEBORG GROUP 11 February 15, 2012 Note:1 As per press release of
Slide 12: Joint venture agreement signed late last year
Joint venture agreement signed late last year Press release December 22, 2011 “The Joint Venture will be a global leader in antivibration solutions that will be able to offer the market’s best geographical coverage and broadest product portfolio. The offering to our customers will be strong” TRELLEB
Slide 13: Global leader within antivibration solutions
Global leader within antivibration solutions Joint Venture composition Trelleborg Vibracoustic Sales: SEK 7,100 M (YE 11) 1 ■ Trelleborg and Freudenberg 50/50 ownership ■ Standalone entity ■ Sales: SEK ~13,400 M (YE 2011) ■ Headquarter in Darmstadt, Germany (proposed) ■ Presence in >15 countries Sal
Slide 14: Strong customer base
Strong customer base Customer examples TRELLEBORG GROUP 14 February 15, 2012
Slide 15: Offering complete anti-vibration solutions
Offering complete anti-vibration solutions Light vehicle AVS products TRELLEBORG GROUP 15 February 15, 2012
Slide 16: Complementary product portfolios
Complementary product portfolios Product group comparison ■ Chassis mounts ■ Engine mounts ■ Torsional vibration dampers ■ Air springs ■ Spring aids / spring isolators ■ Exhaust mounts / mass dampers TRELLEBORG GROUP 16 February 15, 2012
Slide 17: Strong global footprint
Strong global footprint Trelleborg AVS and Vibracoustic main sites ■ Americas ■ Europe ■ Asia Trelleborg AVS site Vibracoustic site TRELLEBORG GROUP 17 February 15, 2012
Slide 18: Global leader with a strong footprint
Global leader with a strong footprint Joint venture summary ■ Global leader with strong position across most regions ■ Strong complementary business / customer fit ■ Complementary product offering ■ Strong global production and engineering footprint ■ Platform for accelerated development and future
Slide 19: JV completion expected in Q2 / Q3
JV completion expected in Q2 / Q3* JV formation milestones January 2011 December 2011 Q2-Q3 2012 Press release Signing Closing ■ Letter of intent ■ Signing of JV ■ Completion of to form a 50:50 agreement the Joint Venture Joint Venture * Completion of the Joint Venture is pending approval from compe
Slide 20: Demand continued to improve
Demand continued to improve Trelleborg Sealing Solutions1 SEK M Q4 2011 Q4 2010 Change Net sales 1,570 1,434 9% ■ Organic sales: +4% EBITDA2 335 259 29% Structure: +6% ■ Record Q4 profits and margins Margin, % 21.3 18.1 320bp ■ Increased volumes Operating profit2 281 216 30% ■ Strong cash flow Margi
Slide 21: Improved demand
Improved demand Trelleborg Wheel Systems1 SEK M Q4 2011 Q4 2010 Change Net sales 954 738 29% ■ Organic sales: +20% EBITDA2 122 77 58% Structure: +11% ■ Record Q4 profits and margins Margin, % 12,8 10.4 240bp ■ Improved demand from OEM Operating profit2 99 51 94% customers Margin, % 10,4 7.0 340bp ■
Slide 22: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q1 2012 ■ Q&A TRELLEBORG GROUP 22 February 15, 2012
Slide 23: Continued increase in demand
Continued increase in demand Financial highlights Q4 20111 Key ratios, SEK M Q4 2011 Q4 2010 Change Operating key ratios, SEK M Q4 2011 Q4 2010 Change Net sales 7,106 6,852 4% Items affecting comparability -70 -118 - Operating profit 459 400 15% Operating profit2 529 518 2% Profit for the period 266
Slide 24: Increased demand in all segments
Increased demand in all segments Financial highlights 20111 Key ratios, SEK M 2011 2010 Change Operating key ratios, SEK M 2011 2010 Change Net sales 29,106 27,196 7% Items affecting comparability -204 -250 - Operating profit 2,431 2,036 19% Operating profit2 2,635 2,286 15% Profit for the period 1,
Slide 25: Organic sales: +3%, Currency: -1%
Organic sales: +3%, Currency: -1% Sales development1 % 40 Full year Full year % Q4 2011 Q4 2010 2011 2010 Organic sales +3 +18 +11 +17 20 Structural +2 0 +2 0 change 0 Currency -1 -7 -6 -7 Total +4 +11 +7 +10 -20 -40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 10 10 10 10
Slide 26: Sales continue to increase
Sales continue to increase Group net sales R12M and by quarter1 Net sales SEK M SEK M 8 000 30 000 7 000 25 000 6 000 20 000 5 000 4 000 15 000 3 000 10 000 2 000 5 000 1 000 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 Quarter (LHS) R12M (RHS) TRELLEBORG GROUP Note: 2
Slide 27: EBITDA margin in line with 12%-target
EBITDA margin in line with 12%-target Group EBITDA and margin R12M1,2 EBITDA and margin SEK M % 3 500 14 3 000 12 2 500 10 2 000 8 1 500 6 1 000 4 500 2 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 EBITDA (LHS) EBITDA margin (RHS) TRELLEBORG GROUP Note: 27 February 15,
Slide 28: Operating cash flow lower, but still healthy
Operating cash flow lower, but still healthy Operating cash flow by quarter and R12M1 Operating cash flow SEK M SEK M 1 000 3 500 800 2 800 600 2 100 400 1 400 200 700 0 0 -200 -700 -400 -1 400 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Quarter (LHS) R12M (RHS) TRELLEBOR
Slide 29: Continued improved capital structure
Continued improved capital structure Net debt / EBITDA and net gearing development Net debt / EBITDA Net gearing x % 10 150 8 120 6 90 4 60 48 2 30 1,8 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 09 09 09 09 10 10 10 10 11 11 11 11 09 09 09 09 10 10 10 10 11 11 11 11
Slide 30: Earnings per share in 2011 increased by 18%
Earnings per share in 2011 increased by 18% Earnings per share1,2 SEK EPS 2,50 2,00 1,50 1,15 1,15 0,95 0,85 1,00 0,65 0,50 0,05 0,00 -0,50 -1,00 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 R12M1 3,80 2,15 1,85 2,70 3,25 4,30 4,85 5,35 5,70 5,90 6,30 6,30 R12M1 0,25 -1,05
Slide 31: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q1 2012 ■ Q&A TRELLEBORG GROUP 31 February 15, 2012
Slide 32: Outlook Q1 2012
Outlook Q1 2012 ■ Demand is expected to be in line with or slightly higher than the fourth quarter of 2011, adjusted for seasonal variations TRELLEBORG GROUP 32 February 15, 2012
Slide 33: Record year
Record year 2011 highlights ■ Record year, both in terms of sales and profits ■ Increased sales in all but one market segment ■ Increased M&A activity ■ Improved positions and structural changes ■ Financial targets achieved ■ Good cash flow ■ Dividend of SEK 2.50 proposed by the Board of Directors T
Slide 34: Continued focus on growth and excellence
Continued focus on growth and excellence 2012 priorities ■ Continued focus on profitable growth, selected segments and geographies ■ Manage margin development through operational excellence ■ Continued portfolio management to improve leading positions ■ New organization in order to strengthen and fo
Slide 35: Agenda
Agenda ■ Highlights ■ Business areas ■ Financials ■ Outlook Q1 2012 ■ Q&A TRELLEBORG GROUP 35 February 15, 2012
Slide 36: www.trelleborg.com
www.trelleborg.com
Slide 37: 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 that