Concluding remarks 15:30 12:45 Mindermann Lunch Priorities 12:00 Group Strategic Update Industrial Solutions 1
Trelleborg Industrial Solutions R12 2018 Q1, SEK M 7,051 22% 719 10.2% Sales of Group sales EBIT ROS HQ Trelleborg, Sweden ~6,000 employees Leader in polymer-based solutions for selected applications Global presence and unique capabilities in niches 2
Focus on selected applications and segments General industry Construction Automotive Transportation Oil & Gas Attractive niche positions 3
A leader in global niches 4 1 Non-automotive applications 2 Constant Velocity joint boots
Strategic priorities 5
Strategic priorities 6
Value creation Product innovations Ease of doing business Business accelerators 7
9 10 11 Source: Global Modular Construction Market Research Report, April 2018 12 13 15 1 Stratview Research, Global CIPP Study, 2017 16 Selected examples Value creation product innovation Cryoline Value creation product innovation Jettyless Liquid Seals Natural for modular Gas transfer construction Enables offloading in new locations Reduced infrastructure Value investment creation product innovation Order value EUR ~2-10 M Wall-to-floor Hydraulic and wall-to-ceiling axle guide seals bearing Value creation ease of doing business Mountfinder Pro Value creation ease of doing business Smartphone placed on object and measures vibration frequency Industrial hose wear indicator system App suggests choice of mounts with technical details Request for quotation submitted electronically Value creation business accelerator Turnkey trailer solution Value creation business accelerator Ready-to-go trailer for no-dig pipe rehabilitation Compact Hydromount; protecting assets, protecting people ~1,000,000 km of pipes installed in USA ~75% are in need of repair 1 Faster assembly time Global growth forecast ~6% p.a. to 2023 Auto-adjusting intelligent guide bearings Improved stability allowing for higher speeds on curves Smart solution that informs when hoses need replacing Conductive wires embedded in hose Avoid unnecessary maintenance and production breaks Dynamic antivibration for Off Highway equipment Improved productivity through higher operator comfort Enhanced uptime through reduced maintenance and repairs Cost savings from reduced wear to rails and wheels Global market value EUR ~40 M 8
Value creation product innovation Jettyless Liquid Natural Gas transfer Cryoline LNG hose Enables offloading in new locations Reduced infrastructure investment Order value EUR ~2-10 M 9
Value creation product innovation Seals for modular construction Wall-to-floor and wall-to-ceiling seals Faster assembly time Global growth forecast ~6% p.a. to 2023 10 Source: Global Modular Construction Market Research Report, April 2018
Value creation product innovation Hydraulic axle guide bearing Auto-adjusting intelligent guide bearings Improved stability allowing for higher speeds on curves Cost savings from reduced wear to rails and wheels Global market value EUR ~40 M 11
Value creation ease of doing business MountFinder Pro Smartphone placed on object and measures vibration frequency App suggests choice of mounts with technical details Request for quotation submitted electronically 12
Value creation ease of doing business Industrial hose wear indicator system Smart solution that informs when hoses need replacing Conductive wires embedded in hose Avoid unnecessary maintenance and production breaks 13
Pipe seals business fundamentals New installations Repair / aftermarket + 14
Value creation business accelerator Turnkey trailer solution Ready-to-go trailer for no-dig pipe rehabilitation ~1,000,000 km of pipes installed in USA ~75% are in need of repair 1 15 1 Stratview Research, Global CIPP Study, 2017
Value creation business accelerator Compact Hydromount; protecting assets, protecting people Enhanced uptime through reduced maintenance and repairs Dynamic antivibration for Off Highway equipment Higher operator comfort 16
Strategic priorities 17
Geographic development Business overview & sales by region 38 factories ~55 % ~28 % 55 sales offices ~100 countries Sales: North America, Western Europe, Rest of World 18
Geographic development North America Sealing profiles Footprint optimization Capacity expansion Examples of growth initiatives Consolidation of three factories into one Significant growth opportunities Sunroof seals EUR >35 M Market value Aerospace profiles EUR >50 M Market value Completion: End 2018 19
Geographic development Mexico Sealing Profiles CV joint boots 1 Examples of growth initiatives New production site Closer to market Some production transfer from USA Leading position in Americas Significant growth opportunities Cable protectors EUR >15 M Market value 2 CV joint boots 2 EUR >50 M Market value 1 20 1 Constant Velocity joint boots 2 USA and Mexico
Geographic development China CV joint boots 1 Antivibration solutions Examples of growth initiatives Leading position in China presence for a decade Second factory being inaugurated capacity expansion ongoing Significant growth opportunities Niche position in China presence for a decade Engine and cab mounts for SPVs 2 Local and global OEM customers CV joint boots 2 EUR >100 M Market value 1 Off-highway EUR >100 M Market value 3 21 1 Constant Velocity joint boots 2 Special Purpose Vehicles 3 Total available market, internal analysis
Geographic development India Antivibration Solutions Growth drivers Antivibration solutions Examples of growth initiatives Population growth Underdeveloped infrastructure and rolling stock Inter-urban rail segment expansion New plant in Bengaluru Target to significantly increase sales Platform for new applications Suspension systems = Antivibration solutions 22
Take-aways Leading positions in selected segments Niche approach Leveraging improved structure Investing more than ever in innovative solutions Supplementary acquisitions 23
Leveraging our strategic priorities Long-term target 12% 24
Concluding remarks 15:30 12:45 Pompei Lunch Priorities 12:00 Group Strategic Update Wheel Systems 25