Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Merger or Acquisition (March 2022)
16 slides from Trelleborg Ab Class B's merger presentation, Mar 25, 2022
Slide 1: Trelleborg divests its business area Trelleborg Wheel Systems
Trelleborg divests its business area Trelleborg Wheel Systems 1
Slide 2: Growing Trelleborg into the world's foremost engineered polymer solutions company
“Growing Trelleborg into the world’s foremost engineered polymer solutions company in our selected industries” 2
Slide 3: Growing Trelleborg into the world's foremost engineered polymer solutions company
“Growing Trelleborg into the world’s foremost engineered polymer solutions company in our selected industries” 3
Slide 4: Accelerating our journey
Accelerating our journey Strategic rationale for deal ▪ More profitable, less cyclical and improved sustainability profile ▪ More coherent portfolio with similar business models and drivers ▪ Strengthen our capacity to accelerate growth ▪ Attractive valuation 4
Slide 5: Trelleborg Wheel Systems
* Global leader in ODa erin Specialty tires TRELLEBORG
Slide 6: Trelleborg Wheel Systems sales and EBIT
Trelleborg Wheel Systems Sales EBIT SEK 10.1 B SEK 1.2 B 30% of Trelleborg Group 22% of Trelleborg Group 6 Note: Financials FY 2021
Slide 7: Attractive valuation
Attractive valuation Purchase price (EV) ▪ Buyer: Yokohama ▪ Offer acknowledges Trelleborg Wheel EUR 2,100 M Systems’ leading position and journey SEK ~22,000 M towards 15% EBIT-margin ▪ Cash and debt free basis ▪ Attractive valuation when compared to ▪ Included in the purchase price (EV) is an earn
Slide 8: 8
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Slide 9: Trelleborg post-transaction
Trelleborg post-transaction Trelleborg Group Trelleborg Sealing Solutions Trelleborg Industrial Solutions Bespoke strategies for each business Scale up & Climbing the accelerate value ladder 9
Slide 10: Trelleborg post-transaction
Trelleborg post-transaction Sales by business area Proforma sales development, SEK B CAGR 2017-2019 ~10% 2021 Proforma 2021 5% TWS TSS 30% 37% 23.9 23.8 TIS 19.7 21.6 21.5 TSS 47% 53% TIS 33% 2017 2018 2019 2020 2021 EBIT by business area Proforma EBIT development, SEK B CAGR 2017-2019 ~12% 2021 Pro
Slide 11: More profitable and improved ROCE
More profitable and improved ROCE Average 2017-2021, % 2021, % +0.9 +0.9p.p 16.4 14.3 15.2 EBIT-margin, % Continuing operations Proforma Proforma incl. TWS +2.2 +2.2 p.p 15.1 13.8 11.6 Return on capital employed, % Continuing operations Proforma Proforma incl. TWS 11 Note: Proforma representing cont
Slide 12: More coherent and less cyclical
More coherent and less cyclical Business areas Geographies Industries Healthcare & Medical ~10% Aerospace Aerospace Proforma sales split Asia and RoW ~10% ~25% excluding Trelleborg TIS TSS Europe 47% ~50% Light vehicles Diversified Wheel Systems 53% industrials ~15% North America ~65% ~25% 12 Note:
Slide 13: Further information on use of proceeds to follow
Further information on use of proceeds to follow Net debt/EBITDA, 2017-2021 ▪ Accelerating growth 2.5 - Organic (capex) Net cash position 1.8 1.8 1.7 - Acquisitions following transaction 1.2 ▪ Share buy-back (ongoing) ▪ Potential share redemption after closing of transaction Proforma net cash positi
Slide 14: Sustainability leader in our industry
Sustainability leader in our industry “Net zero” Deal improves our sustainability profile and CO2 footprint Vision 2035 Top position for many years 14
Slide 15: Closing remarks
Closing remarks “Growing Trelleborg into the world’s foremost engineered polymer solutions company in our selected industries” ▪ More profitable, less cyclical and improved sustainability profile ▪ More coherent portfolio with similar business models and drivers ▪ Strengthen our capacity to accelera
Slide 16: Trelleborg
TRELLEBORG