Trelleborg Ab Class B · OMXSTO:TREL_B

Trelleborg Ab Class B — Q3 2024 Earnings Presentation

29 slides from Trelleborg Ab Class B's earnings presentation, Oct 24, 2024

  1. Slide 1: July-September 2024

    uly-September 2024 = Son, President & CEO— = Fredrik Nilsson, CFO TRELLEBORG

  2. Slide 2: Agenda

    Agenda Highlights Business areas Financials Summary & Outlook Q4 2024 Q&A 2 TRELLEBORG GROUP

  3. Slide 3: Mixed performance

    Mixed performance Q3 2024 financial summary1 • Sales at SEK 8 442 M, in line with the preceding year • Organic sales +1 percent, M&A +2 percent, currency -3 percent • EBITA at SEK 1 464 M, corresponding to a margin of 17.3 percent (17.6) • Items affecting comparability at SEK -73 M • Operating cash

  4. Slide 4: Organic sales development by geography

    Organic sales development by geography Organic sales continuing operations • operations Total Jul - Sep 24 Jul - Sep 23 Europe 1% -1% Share of sales1 Jul - Sep 24 Jul - Sep 23 46% -1% 3% North- and South America Share of sales1 Jul - Sep 24 Jul - Sep 23 Asia and rest of the world 35% -5% 0% Share of

  5. Slide 5: Agenda

    Agenda Highlights Business areas Financials Summary & Outlook Q4 2024 Q&A 5 TRELLEBORG GROUP

  6. Slide 6: Organic growth despite tougher markets

    Organic growth despite tougher markets Trelleborg Industrial Solutions1 • Organic sales: +2 percent, M&A +1 percent • Mixed demand in the industrial segments SEK M Q3 2024 Q3 2023 Change, % • Residential construction continue to be weak in Net sales 3 661 3 663 0 both Europe and North America Organi

  7. Slide 7: A new platform from which to grow

    A new platform from which to grow Trelleborg Medical Solutions1 • Organic sales: +1 percent, M&A +35 percent • Baron Group consolidated from 17 July 2024 SEK M Q3 2024 Q3 2023 Change, % • Organic sales of medical solutions were largely Net sales 852 645 32 unchanged in both Europe and North America

  8. Slide 8: Stable performance in tougher markets

    Stable performance in tougher markets Trelleborg Sealing Solutions1 • Organic sales: +1 percent, M&A +2 percent • Sales to general industry declined in Europe and SEK M Q3 2024 Q3 2023 Change, % North America, but improved in Asia Net sales 4 130 4 158 -1 • Deliveries to the automotive industry incr

  9. Slide 9: Sustainability KPIs – continuing operations

    Sustainability KPIs – continuing operations Carbon dioxide emissions Tonnes, CO₂ 30,000 28,411 25,000 20,775 20,000 18,271 15,000 13,713 13,962 10,000 5,000 0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 9 TRELLEBORG GROUP

  10. Slide 10: Sustainability KPIs – continuing operations

    Sustainability KPIs – continuing operations Share of renewable and fossil-free electricity +23 p.p. Mwh 64% 87% 100,000 77,780 76,968 76,275 74,181 79,154 80,000 69,692 67,694 68,822 60,000 49,879 41,965 40,000 20,000 0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Renewable and fossil-free electricity Total electr

  11. Slide 11: Agenda

    Agenda Highlights Business areas Financials Summary & Outlook Q4 2024 Q&A 11 TRELLEBORG GROUP

  12. Slide 12: Sales largely unchanged

    Sales largely unchanged Sales development continuing operations 0% July – September (%) 8,458 8,442 Organic 1 Structural 2 Currency -3 Total 0 Q3 23 Q3 24 January – September (%) -2% Organic 0 25,865 25,387 Structural 0 Currency -2 Total -2 9M 23 9M 24 12 TRELLEBORG GROUP

  13. Slide 13: Small organic sales growth

    Small organic sales growth Target: 8% annual sales growth with constant currencies over a business cycle 1 % 30% 23 20% 17 17 16 15 13 12 10 10% 8 3 3 0 0% -10% -5 21 21 22 22 22 22 23 23 23 23 24 24 24 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Of which organic growth, %: 16 9 13 11 15 15 7 3 -1 0 -3 1

  14. Slide 14: 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 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 Quarter (LHS) R12M (RHS) 14 TRELLE

  15. Slide 15: EBITA and margin slightly down

    EBITA and margin slightly down EBITA and margin development1 -2% -0.3 1,487 1,464 17.6 17.3 EBITA Jul - Sep EBITA % Q3 23 Q3 24 Q3 23 Q3 24 -1% +0.2 4,578 4,553 17.7 17.9 EBITA Jan - Sep EBITA % 9M 23 9M 24 9M 23 9M 24 1 Excluding items affecting comparab ility, continuing op erations 15 TRELLEBORG

  16. Slide 16: R12M EBITA – continued improvement

    R12M EBITA – continued improvement EBITA and margin, R12M1 SEK M % 7,000 20 +1% 6,000 18 5,000 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 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 EBITA % EBITA 1 Excl. items affe cting comparability, continuing

  17. Slide 17: Profit & loss statement

    Profit & loss statement SEK M Q3 2024 Q3 2023 Change, % 9M 2024 9M 2023 Change, % Net sales 8 442 8 458 0 25 387 25 865 -2 EBITA, excluding items affecting comparability 1 464 1 487 -2 4 553 4 578 -1 EBITA-margin, % 17.3 17.6 17.9 17.7 EBIT, excluding items affecting comparability 1 320 1 361 -3 4 1

  18. Slide 18: EPS decline in continuing operations

    EPS decline in continuing operations Earnings per share1 -8% % % -10% 3.84 6 4 3.54 4.19 4 3.78 Continuing Jul - Sep Group, 2 operations, 2 excl. items affecting Total comparability 0 0 Q3 23 Q3 24 Q3 232 Q3 24 -68% 0% % % 40 36.84 15 12.56 12.50 Continuing 10 Group, 20 Jan - Sep operations, 11.74 5

  19. Slide 19: Cash flow impacted by higher capex and WC

    Cash flow impacted by higher capex and WC Operating cash flow1 SEK M Q3 2024 Q3 2023 Change 1,608 -10 1,422 EBITDA 1 821 1 831 -10 -232 70 -1 Working capital 88 320 -232 -13 Net capex -406 -393 -13 Leasing -83 -153 70 Other 2 3 -1 Operating cash flow 1 422 1 608 -186 Q3 23 EBITDA Working Net Leasing

  20. Slide 20: Cash conversion remains at a solid level

    Cash conversion remains at a solid level Operating cash flow, R12M1 SEK M % 6,000 140 128 5,500 122 121 5,000 120 101 4,500 96 99 95 92 100 4,000 85 88 88 85 3,500 76 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 20 20 21 21 21 21 22

  21. Slide 21: Back to net debt due to acquisitions and buy-backs

    Back to net debt due to acquisitions and buy-backs Gearing and leverage, R12M, Group1 % 2.5 2.4 2.5 60 56 52 50 2.0 1.8 1.7 40 35 35 1.5 1.2 30 25 1.0 0.8 20 13 0.5 0.3 10 5 0 0.0 -10 -6 -2 -0.5 -0.2 -0.1 18 19 20 21 22 23 24 24 24 18 19 20 21 22 23 24 24 24 Q1 Q2 Q3 Q1 Q2 Q3 Net debt / Equity Net d

  22. Slide 22: ROCE impacted by acquisitions

    ROCE impacted by acquisitions Return on capital employed, R12M, %1 17.5 16.5 15.7 16.1 15.9 14.9 15.1 14.9 15.0 13.9 13.9 13.0 12.9 12.7 12.7 12.5 12.0 12.3 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 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 1 Excluding items

  23. Slide 23: Financial guidelines for full-year 2024

    Financial guidelines for full-year 2024 Continuing operations SEK SEK SEK ~1.7 B ~300 M ~500 M ~25% Capex Restructuring Amortization of Underlying tax costs intangible rate assets 23 TRELLEBORG GROUP

  24. Slide 24: Agenda

    Agenda Highlights Business areas Financials Summary & Outlook Q4 2024 Q&A 24 TRELLEBORG GROUP

  25. Slide 25: Mixed performance

    Mixed performance Q3 2024 financial summary1 • Sales at SEK 8 442 M, in line with the preceding year • Organic sales +1 percent, M&A +2 percent, currency -3 percent • EBITA at SEK 1 464 M, corresponding to a margin of 17.3 percent (17.6) • Items affecting comparability at SEK -73 M • Operating cash

  26. Slide 26: Outlook Q4 2024

    Outlook Q4 2024 • Demand is expected to be slightly lower compared with the third quarter of 2024, adjusted for seasonal variations • The geopolitical situation entails a heightened degree of uncertainty 1 Excluding items affe cting comparability, continuing ope rations 26 TRELLEBORG GROUP

  27. Slide 27: Agenda

    Agenda Highlights Business areas Financials Summary & Outlook Q4 2024 Q&A 27 TRELLEBORG GROUP

  28. Slide 28: 28 TRELLEBORG GROUP

    = ———— LE ————— AAA 28 TRELLEBORG GROUP TRELLEBORG

  29. Slide 29: www.trelleborg.com

    VA TRELLEBORG www.trelleborg .com

Trelleborg — Q3 2024 Earnings Presentation on 6ix