Slide 1: Q3, July-September 2023
Q3, July-September 2023 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2023 Q&A 2
Slide 3: Continued strong earnings growth
Continued strong earnings growth Q3 2023 financial summary1 ▪ Sales at SEK 8 458 M, an increase of 12 percent ▪ Organic sales -1 percent, M&A +9 percent, currency +4 percent ▪ EBITA grew by 11 percent to SEK 1 487 M, corresponding to a margin of 17.6 percent ▪ Items affecting comparability at SEK -1
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Jul - Sep 23 Jul - Sep 22 -1% 15% Europe Share of sales1 Jul - Sep 23 Jul - Sep 22 46% 3% 7% North- and South America Share of sales1 Jul - Sep 23 Jul - Sep 22 33% 0% 24% Asia and rest of the world Share of sales1 Jul -
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2023 Q&A 5
Slide 6: Highest margin to date
Highest margin to date Trelleborg Industrial Solutions1 ▪ Organic sales: -1%, M&A +2% SEK M Q3 2023 Q3 2022 Change, % Net sales 3 663 3 472 6 ▪ Weaker sales for residential construction Organic, % -1 17 and certain industrial segments Structural, % 2 1 ▪ Strong sales within marine segment Exchange r
Slide 7: Investing in fast-growing market segments
Investing in fast-growing market segments Trelleborg Sealing Solutions1 ▪ Organic sales: -1%, M&A +15% SEK M Q3 2023 Q3 2022 Change, % Net sales 4 688 3 970 18 ▪ Sales to aerospace and healthcare & medical remained favorable Organic, % -1 13 ▪ Sales to automotive increased Structural, % 15 3 while i
Slide 8: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ / SEK M Tonnes, CO₂1 (intensity)1 30 000 27 916 5.0 27 192 4.5 25 000 -20% 22 521 21 770 4.0 20 081 3.5 3.4 20 000 3.0 3.1 3.0 2.5 2.4 15 000 2.5 2.0 10 000 1.5 5 000 1.0 0.5 0 0.0 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4
Slide 9: Sustainability KPIs – continuing operations
Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity & LWC rate Mwh1 +13 p.p. LWC1,2 100 000 50 47% 60% 90 000 45 79 102 78 820 80 574 80 000 73 769 73 411 40 37 70 000 35 31 60 000 30 29 27 26 47 879 49 019 48 560 50 000 25 40 000 34 557 35 351 20 30 000 15 20
Slide 10: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2023 Q&A 10
Slide 11: Solid sales increase
Solid sales increase Sales development continuing operations +12% July – September (%) 8 458 Organic -1 7 536 Structural 9 Currency 4 Total 12 Q3 22 Q3 23 +18% January – September (%) 25 865 21 982 Organic 3 Structural 9 Currency 6 Total 18 9M 22 9M 23 11
Slide 12: Ten quarters above our sales target
Ten quarters above our sales target 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 0% -3 -10% -9 20 20 21 21 21 21 22 22 22 22 23 23 23 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Of which organic growth, %: -10 -4 5 31 16 9
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 Quarter (LHS) R12M (RHS) 13
Slide 14: Double-digit EBITA growth
Double-digit EBITA growth EBITA and margin development1 +11% -0.1 p.p. 1 487 17.7 17.6 1 336 EBITA EBITA % Jul - Sep Q3 22 Q3 23 Q3 22 Q3 23 +15% -0.5 p.p. 4 578 18.2 17.7 3 994 EBITA % Jan - Sep EBITA 9M 22 9M 23 9M 22 9M 23 14 1 Excl. items affecting comparability, continuing operations
Slide 15: Highest R12M EBITA to date
Highest R12M EBITA to date EBITA and margin, R12M1 SEK M +19% % 6 000 20 5 000 18 4 000 16 3 000 14 2 000 12 1 000 0 10 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 EBITA % EBITA 15 1 Excluding items affecting comparability, continuing operati
Slide 16: Profit & loss statement
Profit & loss statement SEK M Q3 2023 Q3 2022 Change, % 9M 2023 9M 2022 Change, % Net sales 8 458 7 536 12 25 865 21 982 18 EBITA, excluding items affecting comparability 1 487 1 336 11 4 578 3 994 15 EBITA-margin, % 17.6 17.7 17.7 18.2 EBIT, excluding items affecting comparability 1 361 1 278 6 4 2
Slide 17: EPS improvement in continuing operations
EPS improvement in continuing operations Earnings per share1 % % -20% +19% 6 4.79 6 Group, Total 3.84 4.19 Continuing operations, excl. items 4 Jul - Sep 4 3.52 affecting comparability 2 2 0 0 Q3 22 Q3 23 Q3 22 Q3 23 +141% +21% % % 40 36.84 15 12.56 Group, Total 10.40 Continuing operations, excl. it
Slide 18: Strong cash flow improvement
Strong cash flow improvement Operating cash flow1 656 14 1 608 SEK M Q3 2023 Q3 2022 Change -128 -72 EBITDA 1 831 1 621 210 210 Working capital 320 -336 656 928 Net capex -393 -265 -128 Leasing -153 -81 -72 Other 3 -11 14 Operating cash flow 1 608 928 680 Q3 22 EBITDA Working Net Leasing Other Q3 23
Slide 19: Cash conversion trending higher
Cash conversion trending higher 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 85 100 4 000 82 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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 19 20 20 20 20 21 21 21 2
Slide 20: Net cash position remains – continued buy-backs
Net cash position remains – continued buy-backs Gearing and leverage, R12M, Group1 % 2.5 60 56 56 2.5 2.4 2.4 51 52 50 2.0 1.8 1.8 1.7 40 37 35 35 1.5 1.5 1.2 30 25 1.0 20 10 0.5 0 0.0 -4 -4 -0.1 -0.1 -10 -0.5 16 17 18 19 20 21 22 23 23 23 16 17 18 19 20 21 22 23 23 23 Q1 Q2 Q3 Q1 Q2 Q3 Net debt / E
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 13.5 12.9 13.0 12.5 12.0 11.6 11.0 11.2 10.0 7.5 5.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 19 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 21 1 Excluding item
Slide 22: Financial guidelines for full-year 2023
Financial guidelines for full-year 2023 Continuing operations ▪ Capex: SEK ~1.6 Bn ▪ Restructuring costs: SEK ~500 M (integration of acquisitions and measures to address anticipated lower demand in H2 2023) ▪ Amortization of intangible assets SEK ~500 M ▪ Underlying tax rate: ~26 percent 22
Slide 23: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q4 2023 Q&A 23
Slide 24: Continued strong earnings growth
Continued strong earnings growth Q3 2023 financial summary1 ▪ Sales at SEK 8 458 M, an increase of 12 percent ▪ Organic sales -1 percent, M&A +9 percent, currency +4 percent ▪ EBITA grew by 11 percent to SEK 1 487 M, corresponding to a margin of 17.6 percent ▪ Items affecting comparability at SEK -1
Slide 25: Outlook Q4 2023
Outlook Q4 2023 ▪ Demand is expected to be in line with the third 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 Q4 2023 Q&A 26
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