Trelleborg Ab Class B · OMXSTO:TREL_B
Trelleborg Ab Class B — Q2 2022 Earnings Presentation
29 slides from Trelleborg Ab Class B's earnings presentation, July 2022
Slide 1: Q2, April-June 2022
Q2, April-June 2022 Peter Nilsson, President & CEO Fredrik Nilsson, CFO 1
Slide 2: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2022 Q&A 2
Slide 3: Continued strong growth and record margin
Continued strong growth and record margin Q2 2022 financial summary1 ▪ Sales at SEK 7 351 M, an increase of 21 percent ▪ Organic sales +11 percent, currency +8 percent, M&A +2 percent ▪ EBIT grew by 27 percent to SEK 1 319 M, corresponding to a margin of 17.9 percent ▪ Highest quarterly sales, EBIT
Slide 4: Organic sales development by geography
Organic sales development by geography Organic sales continuing operations Total Apr - Jun 22 Apr - Jun 21 11% 31% Europe Share Apr - Jun 22 Apr - Jun 21 51% 10% 35% Americas Share Apr - Jun 22 Apr - Jun 21 28% 23% 18% Asia & Other markets Share Apr - Jun 22 Apr - Jun 21 21% 1% 39% Share = Continuin
Slide 5: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2022 Q&A 5
Slide 6: Strong growth and record profitability
Strong growth and record profitability Trelleborg Industrial Solutions1 SEK M Q2 2022 Q2 2021 Change, % ▪ Organic sales: +16% Net sales 3 512 2 833 24 ▪ Sales grew significantly in all geographic Organic, % 16 23 markets Structural, % 1 1 ▪ Sales to all market segments increased Exchange rate, % 7 -
Slide 7: Good growth and resilient margins
Good growth and resilient margins Trelleborg Sealing Solutions1 ▪ Organic sales: +7% SEK M Q2 2022 Q2 2021 Change, % ▪ Organic sales to general industry increased Net sales 3 725 3 155 18 in Americas and Europe; Covid-lockdowns Organic, % 7 37 in China hampered sales in Asia Structural, % 2 - ▪ Sale
Slide 8: - reported as Assets held for sale
- reported as Assets held for sale 8
Slide 9: High margin despite inflationary headwinds
High margin despite inflationary headwinds Trelleborg Wheel Systems1 ▪ Organic sales: +21% SEK M Q2 2022 Q2 2021 Change, % Net sales 3 359 2 557 31 ▪ A healthy sales growth in all tire categories Organic, % 21 32 and in all geographical markets Structural, % - - ▪ Sales in the Americas particularly
Slide 10: Group sustainability KPI's
Group sustainability KPI’s Ton CO₂ Ton CO₂ / SEK MY Axis 100 000 10 91 415 90 000 9 8.5 79 562 80 000 8 7.2 70 000 7 60 000 6 50 000 5 40 000 4 30 000 3 20 000 2 10 000 1 0 0 Q1 22 Q2 22 Q1 22 Q2 22 CO₂ CO₂ intensity 10
Slide 11: Group sustainability KPI's
Group sustainability KPI’s Mwh % 140 000 132 991 131 168 30 26.4 26.5 120 000 25 100 000 20 80 000 15 60 000 10 40 000 35 062 34 744 20 000 5 0 0 Q1 22 Q2 22 Q1 22 Q2 22 Renewable and fossil-free electricity Renewable and fossil-free electricity / total electricity Total electricity 11
Slide 12: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2022 Q&A 12
Slide 13: Strong organic sales trend
Strong organic sales trend Sales development continuing operations +21% April – June (%) 7 351 Organic 11 6 079 Structural 2 Currency 8 Total 21 Q2 21 Q2 22 +21% January – June (%) 14 446 11 901 Organic 12 Structural 2 Currency 7 Total 21 6M 21 6M 22 13
Slide 14: Strong sales trend continues
Strong sales trend continues Target: 5-8% annual sales growth with constant currencies over a business cycle1 % 40% 32 30% 20% 17 15 13 10 10% 6 6 7 5 0% -2 -3 -10% -9 -20% -18 19 19 19 20 20 20 20 21 21 21 21 22 22 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Of which organic growth, %: 3 2 1 -5 -21 -10
Slide 15: Sales development
Sales development Continuing operations, R12M SEK M SEK M 8 000 30 000 7 000 27 500 6 000 25 000 5 000 22 500 4 000 20 000 3 000 17 500 2 000 15 000 1 000 12 500 0 10 000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 Quarter (LHS) R12M (RHS) 15
Slide 16: Highest quarterly EBIT and margin to date
Highest quarterly EBIT and margin to date EBIT and margin development1 +27% +0.9 1 319 17.0 17.9 EBIT 1 036 Apr - Jun EBIT-margin Q2 21 Q2 22 Q2 21 Q2 22 +26% +0.6 2 549 17.0 17.6 EBIT 2 018 Jan - Jun EBIT-margin 6M 21 6M 22 6M 21 6M 22 16 1 Excl. items affecting comparability, continuing operations
Slide 17: Highest R12M EBIT and margin to date
Highest R12M EBIT and margin to date EBIT and margin, R12M1 SEK M % 4 500 18 4 000 16 3 500 14 3 000 12 2 500 10 2 000 8 1 500 6 1 000 4 500 2 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 ROS % EBIT 17 1 Excl. items affecting comparability
Slide 18: Profit & loss statement
Profit & loss statement SEK M Q2 2022 Q2 2021 Change, % 6M 2022 6M 2021 Change, % Net sales 7 351 6 079 21 14 446 11 901 21 EBIT, excluding items affecting comparability 1 319 1 036 27 2 549 2 018 26 EBIT- margin, % 17.9 17.0 17.6 17.0 Items affecting comparability -33 -40 -58 65 EBIT 1 286 996 29 2
Slide 19: Strong EPS improvement
Strong EPS improvement Earnings per share1 56% % +32% % 6 5.68 4 3.63 Continuing operations, 4 3.65 2.75 Group, Total Apr - Jun excluding items affecting 2 comparability 2 0 0 Q2 21 Q2 22 Q2 21 Q2 22 % % +36% +27% 15 10 Continuing operations, Group, Total 10.49 Jan - Jun 6.88 excluding items affecti
Slide 20: Cash flow reflects higher business activities
Cash flow reflects higher business activities Operating cash flow1 318 SEK M Q2 2022 Q2 2021 Change 864 EBITDA 1 652 1 334 318 126 798 Working capital -535 -101 -434 -434 -77 1 Net capex -240 -163 -77 Leasing -78 -79 1 Other -1 -127 126 Operating cash flow 798 864 -66 Q2 21 EBITDA Working Net Leasin
Slide 21: Cash conversion impacted by higher sales
Cash conversion impacted by higher sales Operating cash flow, R12M1 SEK M % 6 000 140 128 5 500 119 122 121 120 5 000 99 101 96 4 500 87 85 100 4 000 82 76 83 76 3 500 73 70 70 69 80 3 000 2 500 60 2 000 40 1 500 1 000 20 500 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 18 18 19 19 19 1
Slide 22: Development impacted by share buy-backs
Development impacted by share buy-backs Gearing and leverage, R12M, Group1 % 60 2.5 2.5 51 52 50 2.0 1.8 1.8 1.7 40 37 37 1.6 35 35 1.5 31 1.5 1.4 30 1.2 25 1.1 23 1.0 20 10 0.5 0 0.0 15 16 17 18 19 20 21 22 22 15 16 17 18 19 20 21 22 22 Q1 Q2 Q1 Q2 Net debt / Equity Net debt / EBITDA 22 1 From 2019
Slide 23: Positive ROCE development continues
Positive ROCE development continues Return on capital employed, R12M, % 17.5 16.1 15.7 15.0 15.3 15.1 15.1 14.9 15.0 14.5 14.1 13.9 13.5 13.5 12.9 12.5 12.0 11.6 11.0 11.2 10.0 7.5 5.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 18 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 23 1 Excl. it
Slide 24: Financial guidelines for full-year 2022
Financial guidelines for full-year 2022 Total group (including Assets held for sale) ▪ Capex: SEK ~1.4 Bn ▪ Restructuring costs: SEK ~300 M ▪ Amortization of intangible assets SEK ~300 M ▪ Underlying tax rate: ~25 percent 24
Slide 25: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2022 Q&A 25
Slide 26: Continued strong growth and record margin
Continued strong growth and record margin Q2 2022 financial summary1 ▪ Sales at SEK 7 351 M, an increase of 21 percent ▪ Organic sales +11 percent, currency +8 percent, M&A +2 percent ▪ EBIT grew by 27 percent to SEK 1 319 M, corresponding to a margin of 17.9 percent ▪ Highest quarterly sales, EBIT
Slide 27: Outlook Q3 2022
Outlook Q3 2022 ▪ Demand is expected to be slightly lower than in the second quarter of 2022, adjusted for seasonal variations ▪ The geopolitical situation entails a heightened degree of uncertainty 27
Slide 28: Agenda
Agenda Highlights Business areas Financials Summary & Outlook Q3 2022 Q&A 28
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