Ahead of Trelleborg’s Capital Markets Day: Toward continued increase in profitability and growth

Today, Trelleborg holds its Capital Markets Day at Berns Salonger, Stockholm, Sweden. Presentations will be given by President and CEO, Peter Nilsson, CFO, Ulf Berghult, business area presidents, as well as by a representative of TrelleborgVibracoustic. The presentations start at 1.30 p.m. and each presentation will be published in course of the Capital Markets Day at www.trelleborg.com within the "Investors / Presentations" area of the website.

“Trelleborg's many years of structural changes has paid off. The Group's geographic balance and business portfolio have changed and improved and our market position has strengthened. We have moved forward in the value chain toward more advanced products and turnkey solutions. The result of this work is improved financial strength and profitability over the past few years,” says Trelleborg President and CEO, Peter Nilsson, ahead of the Group’s Capital Markets Day.

“We continue to strengthen Trelleborg's position as a world leader in engineered polymer solutions. The organic growth of the Group is now in focus. In parallel, intensive efforts to further improve profitability in all areas of the business is taking place. We review different kinds of bolt-on acquisitions that complement and strengthen our positions in selected segments,” says Peter Nilsson.

“We strive long-term to achieve a geographic balance, with Western Europe and high-growth countries accounting for 40 per cent shares respectively of Trelleborg's turnover and where North America continues to account for the remainder. We see continued growth opportunities in China, India and Brazil. The driving force is to be close to customers and to follow them in their globalization but also to develop local customer’s relationships. In 2012, no fewer than seven production facilities were established in these countries, which shows that we are gradually developing a better geographic balance,” continues Peter Nilsson.

“In light of our successful structural changes and our concrete plans for the future, we will from fiscal year 2013 work toward new financial goals. At the same time we are changing our business area structure in order to obtain an even stronger focus on core businesses,” says Peter Nilsson.

“Trelleborg is now better equipped than ever before. We have a strong financial base that creates good opportunities to continue our improvements. In the next few years, we will further advance our positions in selected segments. I confidently look forward to lead Trelleborg towards an exciting future,” concludes Peter Nilsson.

Trelleborg's new financial targets should be set against the Group's ambition to increase value creation and to be a world leader in selected market segments and geographic markets, as well as an assessment of global growth and adequate financial security.

Continuing operations excluding TrelleborgVibracoustic (over a business cycle):

  • Organic growth: ≥5 percent
  • EBIT margin excluding items affecting comparability: ≥12 percent
    (equivalent an EBITDA margin of approximately 15 percent)

Continuing operations including TrelleborgVibracoustic including items affecting comparability (over a business cycle):

  • Return on shareholders’ equity (ROE): ≥15 percent

“Trelleborg's new financial targets shall be seen as realistic, reachable and in line with a responsible risk taking. We exceeded our previous financial targets and our ambition remains the same with the new ones,” says CFO, Ulf Berghult.

The new business area organization means that from 2013 Trelleborg Engineered Systems ceases to exist and is split into three new business areas. Trelleborg will then have five business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. Trelleborg also owns 50 percent of TrelleborgVibracoustic.

An organization chart and updated information about Trelleborg’s business area presidents are attached to this press release. All presentations containing additional information about the business areas will be available during the day on www.trelleborg.com within the "Investors / Presentations" area of the website.