Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Investor Day (December 2012)
41 slides from Trelleborg Ab Class B's investor day presentation, Dec 6, 2012
Slide 1: Trelleborg Financials – Capital Markets Day
Trelleborg Financials Capital Markets Day Ulf Berghult, Chief Financial Officer Berns, December 6 1 2012-12-06 TRELLEBORG GROUP
Slide 2: Agenda
Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 2 2012-12-06 TRELLEBORG GROUP
Slide 3: Current financial targets
Current financial targets1 Organic growth: ≥ 5% EBITDA margin: ≥12% Return on equity: ≥12% 1 Continuing operations, over a business cycle, excluding items affecting comparability 3 2012-12-06 TRELLEBORG GROUP
Slide 4: Organic sales development
Organic sales development1 Organic growth target: ≥ 5% average % 20% 18 19 18 15 15% 13 11 13 13 12 10% 9 8 8 8 7 6 6 5 4 5% 2 5% 0% -5% -1 -2 -2 -10% -6 -15% -15 -20% -20 -22 -25% -30% -28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008 2009 2010 2011
Slide 5: Operating margin development
Operating margin development1 EBITDA margin target: ≥12% MSEK % 13,7% 13,8% 3 000 14% 12,4% 12,4% 12,8% 2 500 11,0% 12% 12,0% 10% 2 000 9,4% 8% 1 500 2 874 2 945 2 530 2 639 2 520 6% 1 000 2 044 1 736 4% 500 2% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 EBITDA EBITDA % 1 Continuing operations, e
Slide 6: Drivers of EBITDA margin improvement
Drivers of EBITDA margin improvement EBITDA bridge % 13,8% 14 12 2,4% 12,0% 10 9,4% 2,0% 8 6 4 2 0 2009 Gross Profit SG&A 2012 Q3 R12 Sales: Efficiency Branding Flexibility Positioning Pricing Cost: Efficiency Excellence program Purchasing Flexibility 6 2012-12-06 TRELLEBORG GROUP
Slide 7: Return on Equity
Return on Equity % 16% 15,1% 14,3% 14% 12,9% 12,8% 13,2% 12% 11,2% 11,5% 12,0% 10,5% 10% 9,5% 10,0% 8,4% 8% 7,6% 6% 5,6% 4% 3,6% 2% 0% -2% -4% -2,7% 2006 2007 2008 2009 2010 2011 2012 2012 Q3 R12 Q3 R12 Trelleborg Group Continuing operations excl. items affecting comparabilty incl. TrelleborgVibraco
Slide 8: Agenda
Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 8 2012-12-06 TRELLEBORG GROUP
Slide 9: New organisation
New organisation Operational focus President & CEO Group functions Trelleborg Trelleborg Trelleborg Trelleborg Trelleborg Joint Venture Coated Industrial Offshore & Sealing Wheel Trelleborg Systems Solutions Construction Solutions Systems Vibracoustic Former Trelleborg Engineered Systems 9 2012-12-0
Slide 10: New organisation – Continuing operations
New organisation – Continuing operations1 Operational focus – Sales and EBIT margin; 2012 Q3 R12M EBIT margin % 25% 20,9% 20% 15% 11,9% 11,3% 10% 7,2% 5% 3,8% 0% Sales 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 22 000 Trelleborg Trelleborg Trelleborg Trelleborg Trelleborg Se
Slide 11: New organisation from an accounting perspective
New organisation from an accounting perspective Profit and Loss – key items Trelleborg Sealing Solutions Trelleborg Wheel Systems Trelleborg Industrial Solutions Trelleborg Coated Systems Trelleborg Offshore & Construction Group items Continuing operations Profit from associated companies Items affe
Slide 12: Profit from associated companies – accounting principles
Profit from associated companies – accounting principles Shares in associated companies are accounted for according to equity method The initial share of the associated company is adjusted to reflect the Group’s share of the profit and dividends received TrelleborgVibracoustic – the share in p
Slide 13: Agenda
Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 13 2012-12-06 TRELLEBORG GROUP
Slide 14: Stable development
Stable development Group sales; in constant currency CAGR +9% MSEK 22 000 CAGR +4% 20 000 18 000 16 000 14 000 12 000 10 000 20 163 20 462 20 700 19 047 18 148 8 000 16 006 16 073 6 000 4 000 2 000 0 2006 2007 2008 2009 2010 2011 2012 Q3 R12 14 2012-12-06 TRELLEBORG GROUP
Slide 15: Diversified by geography
Diversified by geography Sales growth1 per geography from 2006 to R12 Q3 2012 +7% Western Europe +71% Eastern Europe +40% North America +181% Asia +36% +88% Africa & Middle East South and Central America 1 Relates to a combination of organic growth and M&A activities 15 2012-12-06 TRELLEBORG GROUP
Slide 16: Diversified by geography
Diversified by geography Trelleborg sales split per geography % 70% 68% 65% 60% 56% 19% 18% 15% 14% 10% 5% 6% 5% 4% 3% 2% 3% 3% 0% Western Europe Eastern North South & Central Asia Africa & Europe America America Middle East 2006 2012 Q3 R12 16 2012-12-06 TRELLEBORG GROUP
Slide 17: Operating margin development
Operating margin development Sales and EBIT margin1 MSEK % 22 000 10,6% 10,6% 11% 9,6% 20 000 9,3% 10% 8,8% 18 000 9% 15,6% 16 000 8% 14 000 7% 12 000 6% 10 000 5,5% 5% 8 000 4% 6 000 3% 4 000 2% 2 000 1% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 EBIT % Sales 1 Excluding items affecting compara
Slide 18: Trelleborg Sealing Solutions
Trelleborg Sealing Solutions Sales and EBIT margin1 MSEK % 8 000 20,5% 20,9% 22% 20% 7 000 18% 6 000 15,6% 14,5% 16% 14,3% 5 000 13,2% 14% 12% 4 000 7,7% 10% 3 000 8% 2 000 6% 4% 1 000 2% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 EBIT % Sales 1 Excluding items affecting comparability 18 2012-12
Slide 19: Trelleborg Wheel Systems
Trelleborg Wheel Systems Sales and EBIT margin1 MSEK % 11,9% 4 000 12% 10,4% 11% 3 500 9,9% 9,4% 10% 8,8% 3 000 9% 7,7% 8,9% 8% 2 500 7% 2 000 6% 5% 1 500 4% 1 000 3% 2% 500 1% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 EBIT % Sales 1 Excluding items affecting comparability 19 2012-12-06 TRELLEB
Slide 20: Trelleborg Industrial Solutions
Trelleborg Industrial Solutions Sales and EBIT margin1 MSEK % 5 500 9,3% 9,5% 9,3% 10% 8,8% 5 000 8,7% 9% 4 500 7,2% 8% 4 000 7% 3 500 6% 3 000 5% 2 500 4% 2 000 3,7% 3% 1 500 1 000 2% 500 1% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 EBIT % Sales 1 Excluding items affecting comparability 20 201
Slide 21: Trelleborg Coated Systems
Trelleborg Coated Systems Sales and EBIT margin1 MSEK % 2 000 12,9% 14% 12,8% 12,0% 10,5% 12% 1 500 11,3% 10% 8% 1 000 7,4% 6% 5,1% 4% 500 2% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R122 1 Excluding items affecting comparability EBIT % Sales 2 Excluding start-up costs in Brazil 21 2012-12-06 TREL
Slide 22: Trelleborg Offshore & Construction
Trelleborg Offshore & Construction Sales and EBIT margin1 MSEK % 11,6% 11,7% 4 000 12% 11,0% 3 500 9,5% 10% 3 000 9,5% 8% 2 500 5,9% 2 000 6% 1 500 4% 1 000 3,9% 3,8% 2% 500 0 0% 2006 2007 2008 2009 2010 20112 2012 Jan-sep Q3 R122 2012 EBIT % Sales 1 Excluding items affecting comparability 2 Please
Slide 23: Stable operating cash flow generation
Stable operating cash flow generation1 MSEK % 247% 2 600 250% 2 400 2 200 200% 2 000 1 800 150% 1 600 1 400 100% 1 200 94% 1 000 76% 92% 78% 68% 50% 800 71% 600 400 0% 200 0 -50% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 Cash Flow Cash conversion 1 Excluding items affecting comparability 23 2012-12-
Slide 24: Investing for organic growth
Investing for organic growth1 Capex vs. depreciation and % of sales MSEK % 1 200 9% 1 100 1 000 8% 900 7% 800 700 6% 600 5,1% 500 4,4% 4,5% 5% 400 3,9% 3,5% 4% 300 3,2% 200 2,9% 3% 100 0 2% 2006 2007 2008 2009 2010 2011 2012 Q3 R12M Capex Depreciation % of sales 1 Excluding items affecting comparabi
Slide 25: Operating cash flow drivers
Operating cash flow drivers EBITDA main driver going forward Capex levels Continued focus on working capital management 25 2012-12-06 TRELLEBORG GROUP
Slide 26: Agenda
Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 26 2012-12-06 TRELLEBORG GROUP
Slide 27: Improved capital structure
Improved capital structure % Net debt / Equity Net debt / EBITDA1 ratio 140% 7 124% 6,2 120% 6 5,7 100% 5,0 100% 96% 5 4,3 80% 4 68% 60% 53% 3 2,7 48% 2,3 41% 40% 2 1,8 20% 1 0% 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 Q3 Q3 R12 R12 1 Continuing operations incl. items
Slide 28: Financial stability
Financial stability 13 844 14 000 14 000 12 706 12 000 12 000 10 238 10 000 10 000 8 000 8 000 6 000 6 000 5 648 4 000 1 4 000 3 367 2 2 868 2 000 2 000 0 0 Trelleborg Group 2008 Trelleborg Group 2012 Q3 R12 EBITDA Net debt Equity 1 Trelleborg Group excl. items affecting comparability 2 Continuing o
Slide 29: Agenda
Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 29 2012-12-06 TRELLEBORG GROUP
Slide 30: Updated financial targets – raising the bar
Updated financial targets1 – raising the bar Continuing operations (excluding TrelleborgVibracoustic) Organic growth: ≥ 5% (unchanged) EBIT margin2: ≥12% (equivalent of ~EBITDA of 15%) Trelleborg Group (continuing operations including TrelleborgVibracoustic) Return on Equity (RoE): ≥15% 1 Over
Slide 31: New organisation from an accounting perspective
New organisation from an accounting perspective Financial targets and reporting structure BA Sealing Solutions BA Wheel Systems BA Industrial Solutions BA Coated Systems BA Offshore & Construction Group ventures Group functions Group items Organic growth: ≥ 5% Net sales – Continuing operations EBIT
Slide 32: Organic sales development
Organic sales development1 Organic growth target: ≥ 5% average % 20% 18 19 18 15 15% 13 11 13 13 12 9 8 8 8 10% 7 6 5 6 5% 4 5% 2 0% -5% -1 -2 -2 -10% -6 -15% -15 -20% -20 -25% -22 -30% -28 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008 2009 2010 2011
Slide 33: Operating margin development
Operating margin development1 EBIT margin MSEK % 2 500 14% 12% 12,0% 2 000 10,6% 10,6% 9,6% 9,3% 9,3% 8,8% 10% 1 500 8% 1 000 6% 5,5% 4% 500 2% 0 0% 2006 2007 2008 2009 2010 2011 2012 Q3 R12 EBIT EBIT % 1 Continuing operations excl. items affecting comparability and excl. TrelleborgVibracoustic 33 2
Slide 34: Return on Equity
Return on Equity % 15% 15,0% 12,9% 12,8% 13,2% 11,2% 11,5% 10,5% 10,0% 10% 5,6% 5% 0% 2006 2007 2008 2009 2010 2011 2012 2012 Q3 R12 Q3 R12 proforma Continuing operations excl. items affecting comparabilty incl. TrelleborgVibracoustic 34 2012-12-06 TRELLEBORG GROUP
Slide 35: Return on Equity
Return on Equity % 15% 14,0% 15,0% 12,9% 13,2% 12,8% 12,3% 11,5% 11,1% 10,4% 11,2% 10,5% 10,0% 10% 8,7% 8,9% 7,4% 5,6% 5% 3,6% 0% 2006 2007 2008 2009 2010 2011 2012 2012 Q3 R12 Q3 R12 proforma Continuing operations incl. items affecting comparabilty incl. TrelleborgVibracoustic Continuing operations
Slide 36: Financial guidelines – updated
Financial guidelines1 – updated Dividend policy of 30-50% of net profit2 Net debt / Equity ratio of 50 % - 100% Restructuring costs1 2012 ~180 MSEK / 2013 ~250 MSEK Capex1 2012 ~850 MSEK / 2013 ~900 MSEK Tax rate ~28% 1 Related to continuing operations 2 Definition:The Group’s dividend pol
Slide 37: New organisation from an accounting perspective
New organisation from an accounting perspective Financial targets and reporting structure BA Sealing Solutions BA Wheel Systems BA Industrial Solutions BA Coated Systems BA Offshore & Construction Group items Net sales – Continuing operations EBIT – Continuing operations Profit from associated compa
Slide 38: TrelleborgVibracoustic EBIT development
TrelleborgVibracoustic EBIT development1 MSEK +26% 900 843 800 773 772 700 600 500 419 422 387 386 400 334 300 200 100 60 70 30 0 -100 -41 -33 -17 2008 2009 2010 2011 2012 Q3 R12 TrelleborgVibracoustic-Proforma Trelleborg Group share of TrelleborgVibracoustic Trelleborg Automotive AVS 1 Adjusted pro
Slide 39: TrelleborgVibracoustic financial impact on Trelleborg Group
TrelleborgVibracoustic Financial impact on Trelleborg Group MSEK 4 000 3 662 3 500 +26% 813 3 000 2 500 2 849 2 000 1 500 2 824 2 849 1 000 500 813 334 422 0 EBIT Book value Profit share1 Book value Repayment Book value 30/9-2012 post refinancing Actual 2011 2012 Q3 R12 Trelleborg Automotive AVS Tre
Slide 40: Questions & Answers
Trelleborg Financials Questions & Answers 40 2012-12-06 TRELLEBORG GROUP
Slide 41: Welcome to the World of Trelleborg
Welcome to the World of Trelleborg