Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Investor Day (2014)
61 slides from Trelleborg Ab Class B's investor day presentation, Jul 8, 2014
Slide 1: Trelleborg
ae sy! inne NAT TRELLEBORG
Slide 2: Capital Markets Day 2014
Capital Markets Day 2014 Maurizio Vischi, Business Area President 2
Slide 3: Leading positions in selected tire segments
Leading positions in selected tire segments Trelleborg Wheel Systems profile 2013, SEK M 4,189 20% 490 11.7% Sales of Group Sales EBIT Margin Headquarters in Rome, Italy Leading market positions ~ 3,000 employees European leader Agricultural & Forestry tires 8 manufacturing sites, 25 sales
Slide 4: Sales split 2013 and main manufacturing sites
Sales split 2013 and main manufacturing sites Western Europe 61% North America 23% Rest of the world Manufacturing 16% 4
Slide 5: Sales 2013 per market segment
Sales 2013 per market segment Transportation equipment 44% 56% Agriculture 5
Slide 6: Leading Agriculture and Industrial tire business
Leading Agriculture and Industrial tire business Agricultural & Forestry tires Industrial tires 56% 44% Original equipment manufacturers ~ 50% Aftermarket/ replacement ~ 50% 6
Slide 7: Agricultural tires
Agricultural tires WY TRELLEBORG
Slide 8: Agricultural tires
Agricultural tires TRELLEBORG
Slide 9: Forestry tires
Forestry tires 9
Slide 10: Agroindustrial tires
10 Agroindustrial tires TRELLEBORG
Slide 11: Material handling tires
11 Material handling tires TRELLEBORG
Slide 12: Material handling tires
Material handling tires VT TRELLEBORG
Slide 13: Special applications – passenger board bridges tires
Special applications – passenger board bridges tires 13
Slide 14: Special applications – industrial trailer tires
Special applications – industrial trailer tires 14
Slide 15: Special applications – heavy duty solid tires
Special applications – heavy duty solid tires 15
Slide 16: Blue dimension
Leading specialty tires position Premium Innovative service positioning concept strong brand supported by strategic marketing Interfit Industrial tires Niche within Blue a niche focus on selected dimension sustainable farming applications Focus on First Western The right performance manufacturer foo
Slide 17: The world of tires
The world of tires Among others Industrial tires Agricultural & Forestry tires Other tires 17
Slide 18: Tire manufacturers change focus
Tire manufacturers change focus Acquisitions within Industrial Tires 18
Slide 19: Tire manufacturers change focus
Tire manufacturers change focus Acquisitions within Agricultural & Forestry Tires 19
Slide 20: Tire manufacturers change focus
Tire manufacturers change focus Acquisitions within Agricultural & Forestry Tires Too small and complicated business Fierce car/truck tire competition calls for focus 20
Slide 21: Agricultural & Forestry Tires – competitors
Agricultural & Forestry Tires – competitors Tier 1: Original equipment & aftermarket Tier 2: Original equipment & aftermarket Tier 3: Aftermarket 21
Slide 22: Industrial Tires – competitors
Industrial Tires – competitors Tier 1: Original equipment & aftermarket Tier 2: Original equipment & aftermarket Yantai CSI Rubber Co Ltd Tier 3: Aftermarket … and many more 22
Slide 23: Long term agriculture tires business drivers
Long term agriculture tires business drivers Agriculture Total tractor registrations, 2010-2016** 158 160 Mechanization – increased use 150 146 of equipment 140 137 Industrialization – increased 130 130 122 122 focus on efficiency 117 120 120 114 115 110 100 ...further boosted by biofuels growth
Slide 24: Long term industrial tires business drivers
Long term industrial tires business drivers Industrial tires Global container shipping volume, 1980-2015* Million TEU (Twenty-foot Equivalent Unit) 250 Increasing global trade 200 General growth of logistic services 150 Increasing share of lease sales More focus on lifecycle cost 100 50 Driv
Slide 25: Strategic priorities
Strategic priorities Protect margins through innovative 1. solutions and products Marketing leadership and digital 2. services Interfit – industrial tires service concept 3. expansion 4. Agricultural tires manufacturing in the United States 5. Develop Chinese production and sales 6. Potential acquis
Slide 26: Progressive Traction
! Progressive Traetion os TRELLEBORG
Slide 27: STANDARD ProgressiveTraction – The “Double Edge”
1. STANDARD ProgressiveTractionTM The “Double Edge” 27
Slide 28: Why “Progressive”?
1. Why “Progressive”? Double edge effect 28
Slide 29: ProgressiveTraction – traction in the field
1. ProgressiveTractionTM – traction in the field p= 1,2bar 4000 ProgressiveTractionTM 3500 3000 Standard 2500 Pull Force (kg) 2000 Log. (TM800 NP 1,2 bar) 1500 1000 500 Up to +10% improvement Log. (TM800 'EVO' 1,2 bar) 0 0,0 5,0 10,0 15,0 20,0 25,0 30,0 Slip (%) 29
Slide 30: +3% footprint, -5% fuel consumption, -3% working time
1. ProgressiveTraction TM +3% Total footprint Higher is better - 5% Fuel consumption Lower is better 103 100 100 95 Standard Progressive Standard Progressive Traction Traction - 3% Working time 30
Slide 31: TRELLEBORG
TRELLEBORG
Slide 32: Solid industrial tires usually replaced too early
1. Solid industrial tires usually replaced too early Sample analysis of 200.000 tires returned to disposal centres in 2013 32
Slide 33: The reason behind a huge waste of tire life
1. The reason behind a huge waste of tire life Rules for passenger car tires are incorrectly applied to forklift tires Tread wear limit is given by tread depth Tread depth has nothing to do with tread wear limit 33
Slide 34: Pit Stop Line by Trelleborg
1. Pit Stop Line by Trelleborg Innovation that delivers customer value Standard Solid Tire Trelleborg Pit Stop Line c.66% 33% New 80 hrs worn tireleft c.66% 33% New 80 hrs worn tireleft 34
Slide 35: Pit Stop Line by Trelleborg
1. Pit Stop Line by Trelleborg Innovation that delivers customer value 35
Slide 36: Material Handling Hannover Fair, CEMAT 2014
1. Material Handling Hannover Fair, CEMAT 2014 36
Slide 37: Innovative marketing
Innovative marketing ORG N a Trellegors and Fe Bey yy , ; TRELLEBORG AND YALE \ NOMA) . TRELLEBORG
Slide 38: Strong and light at the same time? TM1000 Hi
Strong and light at the same time? That's why we've created the TM1000 Hi it provides an extra-wide footprint, reducing ground pressure, protecting soil and ensuring high crop yields. Moreover, its reduced rolling resistance results in low and emissions, helping you to produce more in a sustainable
Slide 39: Social network platform
2. Social network platform Targeting 200,000 customers in 2014 New animation launched at Agritechnica 2013 6 Languages available More than 118,000 Views on Youtube 39
Slide 40: Interfit development
3. Interfit development Interfit has two strands of development GEOGRAPHIC TECHNICAL EXPAND INTO EXPAND INTO NEW NEW TERRITORIES CHANNELS 40
Slide 41: 2013 - 2014: Developing Interfit geographically
3. 2013 - 2014: Developing Interfit geographically Service concept expansion in USA and Europe EUROPE USA INTERFIT NL & IT* INTERFIT USA LAUNCH 41 * Supplementary bolt-on acquisitions
Slide 42: 2013 - 2014: Developing Interfit technically
3. 2013 - 2014: Developing Interfit technically Development of IT platform for competitive advantage 42
Slide 43: TRELLEBORG
TRELLEBORG
Slide 44: North America – the largest agricultural market
North America – the largest agricultural 4. market Arable land vs. cropped land 57% Russia & CIS 58% 73% 200 M hectares Europe 35% 128 M hectares North America 211 M hectares China 122 M hectares 86% Brazil Cropped land 79 M hectares Source: FAO, National Bureau of Statistics of China 44
Slide 45: Half of agro sales of “Big Three” are generated in North America
Half of agro sales of “Big Three” are 4. generated in North America Total sales: ~40 $Billion Rest of World 5% Europe 31% 51% North America 13% Latin America 45
Slide 46: Radial tires business growing fast…
4. Radial tires business growing fast… Tractor > 40 hp 30% 18% 70% Russia & CIS 44% 1.0 M pieces 56% 3% 82% North America Europe 1.4 M pieces 1.6 M pieces 97% 12% China 1.1 M pieces 88% Radial Brazil Xply 0.4 M pieces 46 Sources: ETRma, Specialized Press, AFT internal Intelligence
Slide 47: Distribution costs vs. “Made In USA” brand
4. Distribution costs vs. “Made In USA” brand Logistic Costs +13% 47
Slide 48: Decision to start agri tires in the U.S.
4. Decision to start agri tires in the U.S. 48
Slide 49: TRELLEBORG
TRELLEBORG
Slide 50: Our Chinese production grows rapidly
5. Our Chinese production grows rapidly Share of produced tons: 2011 - 2013 7% 4% 3% 21% 41% 44% 2011 2013 46% 35% Italy Sri Lanka China Other 50
Slide 51: China market overview
5. China market overview Global OEM brands have moved production to China 51
Slide 52: Strong growth in Chinese materials handling market
Strong growth in Chinese materials handling 5. market Sales of fork-lift machines (units) 2008 2013 CHINA + 113% 100.000 213.000 52
Slide 53: Chinese market developing fast
5. Chinese market developing fast Massive government support to agriculture High power tractors to grow by 70% in 4 years Agricultural Tire Market Arable Land Radial 3% X-Ply Cropped land 35% 65% 97% X-Ply 122 ML Ha 53
Slide 54: Not only traditional communication channels
5. Not only traditional communication channels 54
Slide 55: Also customer educational initiatives...
5. Also customer educational initiatives... 55
Slide 56: ...and improving some basic operations
5. ...and improving some basic operations 56
Slide 57: EBIT Development %
EBIT and ROS growing every year! +11% +15% EBIT= 61% 57 ML€ EBIT Development % +22% +19% +13% +4% +35% +24% -31% But: ROS: 9.4% EBIT=13.9 ML€ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ROS 5.0% 5.8% 7.1% 7.7% 8.9% 9.9% 9.4% 8.8% 10.4% 11.6% 11.8% 57
Slide 58: EBIT-margin growing every year
EBIT-margin growing every year EBIT-margin 12-14% 12% 9% Historical Current Long-term 2006-2010 2013 58
Slide 59: Strategic priorities
Strategic priorities Protect margins Marketing leadership through innovation & digital services Interfit concept Agri tires expansion manufacturing in US Potential acquisitions Develop Chinese in selected markets production & sales 59
Slide 60: TRELLEBORG
TRELLEBORG
Slide 61: Trelleborg
ae sy! inne NAT TRELLEBORG