TRELLEBORG COATED SYSTEMS BUSINESS AREA Trelleborg BUSINESS AREA Coated Systems Trelleborg Coated Systems is a leading global supplier of unique customer solutions for polymer-coated fabrics deployed in several industrial applications.
Polymer engineering. The development and was upgraded with new equipment for production of polymer-coated fabrics better capacity utilization, while the opera- We see development and requires expertise and applications tive structure was also changed to further expansion opportunities in know-how in the fi eld of polymer engineering. improve customer service. several segments, niches and From polymer-coated fabrics, printing From 2018, the majority of Savatech’s geographies, particularly for our blankets are made for all types of printing operations are also included in the business as well as engineered coated fabrics that area. Savatech was a part of CGS Holding polyurethane-coated fabrics. form part of a large number of products, and has been independent of Trelleborg’s Our ambition is also to secure our from aerospace to healthcare equipment. business area structure, see also page 24. world-leading position in printing A common feature of the products is their blankets by remaining at the high technological content and their critical Sales and earnings 2017. Organic sales role in the overall solution. declined 3 percent compared with 2016. leading edge of technology. The business area is global in terms of Sales of coated fabrics declined during the A focus area for 2018 will be its production capacity and has major local year. North America had a positive organic presence in terms of sales and customer performance, although this could not fully the integration of the majority support. In recent years, the focus has offset the lower sales in Europe and Asia. of Savatech’s operations, expanded from Europe to North and South Organic sales of printing blankets decreased which offer, for example, America, although Asia is also becoming an during the year, with Asia noting a stable printing blankets, conveyor increasingly important market. High among trend while the performance in other the priorities are continuing to develop an regions was weaker. belts and other products even more specialized and niche-oriented EBIT and the EBIT margin declined in the area of polymer market offering that includes investments year on year, due primarily to production solutions.” in innovation and a focus on improved disruptions at the beginning of the year customer service. and waning volumes. Measures to improve In 2017, for example, an investment profi tability are proceeding according to plan. Dario Porta, program was concluded at a French produc- Exchange rate effects from the translation Business Area President tion site that manufactures composite of foreign subsidiaries had a positive impact carrier sleeves for fl exo printing. This facility of sek 5 m on EBIT compared with 2016.
14 ANNUAL REPORT 2017 TRELLEBORG AB GRI: G4-4, G4-13 TRELLEBORG COATED SYSTEMS BUSINESS AREA
MARKET SEGMENT EXAMPLES OF BRANDS/ Aerospace: Coated fabrics used in, for PRODUCT NAMES: Axcyl®, Printec®, Rollin®, General industry: Printing and coating example, aircraft evacuation slides, aerostats, Sava and Vulcan®. plate solutions for all types of offset printing, life rafts, helicopter safety floats and thermal as well as flexo and digital printing. Carrier protections for space rockets. KEY CUSTOMERS: Companies mainly active sleeve product line for packaging flexo in the general industry segment, including the Light vehicles: Calendared materials for printing. Coated fabrics and calendared graphic industry, the healthcare and medical brake shims and belts, for example. materials for multiple industrial applications industry and aerospace industry. including belts, gaskets, seals and hoses, as PRODUCTION UNITS: Brazil, China, France, PRINCIPAL COMPETITORS: Continental, well as healthcare & medical accessories, Italy, Slovenia, Sweden, the U.K. and the U.S. Flint Group, Kinyo, Lamcotec, Meiji and Pennel such as wound retractors, cuffs and & Flipo. mattresses. MARKET OFFICES: Austria, Brazil, China, France, Italy, Japan, Slovenia, Sweden, the Transportation equipment: Coated fabrics U.K. and the U.S. for train bellows, among other applications.
Net sales Net sales Employees per geographic market, % per market segment, % per geographic market, %
Capital-intensive industry, 17% Asia and rest Asia and rest Western Transportation of the world, of the world, 10% Europe, 20% equipment, 1% General Western 28% Aerospace, 16% industry, South Europe, 37% Rest of 81% and Central Light Europe, 4% America, 11% vehicles, South and 2% Central America, North America, North America, 5% 43% 42%
Net sales EBIT margin EBIT ROCE Operating cash flow
SEK M%SEK M%SEK M 3,000 15 400 10 400
1,500 10 200 5 200
0 5 0 0 0 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17
Key figures, excluding items affecting comparability,sek m 2017 2016 Net sales 2,476 2,526 Share of consolidated net sales, % 8 9 BUSINESS AREA EBIT 260 323 LONG-TERM TARGET FOR EBIT margin, % 10.5 12.8 EBIT MARGIN Capital employed 3,614 3,863 >15% Return on capital employed (ROCE), % 6.9 8.6 Capital expenditures 95 69 Operating cash flow 257 290 Operating cash flow/operating profit, % 99 90 Number of employees at year-end, including insourced staff and temporary employees 1,194 1,248
GRI: G4-4, G4-8, G4-9 ANNUAL REPORT 2017 TRELLEBORG AB 15 TRELLEBORG INDUSTRIAL SOLUTIONS BUSINESS AREA Trelleborg BUSINESS AREA Industrial Solutions Trelleborg Industrial Solutions is a leading supplier of polymer-based critical solutions in such industrial application areas as selected hose and sealing systems and antivibration solutions for rail vehicles, vessels and industrial equipment.
Application expertise. The products in the From 2018, the majority of Rubena’s opera- business area are highly varied, but the tions are also included in the business We continue to build leading common denominator is that Trelleborg area. Rubena was a part of CGS Holding positions in attractive niches brings a high level of applications expertise. and has been independent of Trelleborg’s throughout the world. A long- Every solution is driven by in-depth knowl- business area structure, see also page 24. term ambition is to expand edge of a specifi c, and often niche, applica- tion. Understanding of the market and close Sales and earnings 2017. Organic sales further in the Asian market by cooperation with customers is a critical rose 5 percent compared with 2016. Most applying a more customized factor in the development of each solution. geographic markets reported positive business model. The business area has substantial organic sales. operations and share of sales in Europe, EBIT and the EBIT margin increased A focus area for 2018 will be but has also made acquisitions and grown compared with the preceding year, due the integration of the majority of in other parts of the world in recent years. primarily to higher volumes, previously Rubena’s operations, which For example, there have been investments implemented acquisitions and completed in expanded production of automotive boots restructuring measures. Exchange rate offer, for example, engineered in both China and Mexico. effects from the translation of foreign polymer solutions for seals, Some current priorities are the develop- subsidiaries had a negative impact of sealing profi les and specialty ment and further improvement of the sek 2 m on EBIT compared with 2016. molded components.” existing day-to-day operations. In particular, this will require being even better at lever- aging the local demand that exists in the Jean-Paul Mindermann, various niches in different parts of the Business Area President world. It also involves the development of new products and solutions, technologies and materials. In this respect, much has happened during the year in, for example, marine hoses that handle oil and gas, see more on page 43.
16 ANNUAL REPORT 2017 TRELLEBORG AB GRI: G4-4, G4-13 TRELLEBORG INDUSTRIAL SOLUTIONS BUSINESS AREA
MARKET SEGMENT Light vehicles: Polymer boots for drive Novibra®, Power-Lock™, Rubena, Sava, SEALINE®, Sewer-Lock™, TRELLINE® and General industry: Fluid-handling solutions, shafts and steering applications. Vibration- TRELLVAC. for example, in hoses, expansion joints and damping and acoustic solutions, as well as elastomer materials. Antivibration solutions, rubber components. KEY CUSTOMERS: Companies active in such as vibration dampers and precision PRODUCTION UNITS: Brazil, China, the Czech general industry, infrastructure and components. Specialized V-belts. Sealing Republic, Estonia, Finland, France, Germany, construction, the transportation industry profiles for facades, windows and doors. India, Lithuania, Mexico, Poland, Spain, and offshore oil & gas. Oil & gas: Marine hoses for handling Sweden, Turkey, the U.K. and the U.S. PRINCIPAL COMPETITORS: Continental, oil and gas. Freudenberg, GMT, Hamilton Kent, Hultec, MARKET OFFICES: Austria, Brazil, China, the Hutchinson, IVG, Lord, M.O.L., Parker Hannifin, Infrastructure construction: Pipe seals Czech Republic, Finland, France, Germany, Sanok Rubber, Semperit, Tremco and Tyman. and repair of drinking water and wastewater Hungary, India, the Netherlands, Norway, systems. Inflatable rubber dams. Mexico, Poland, Russia, Spain, Sweden, Turkey, the U.K. and the U.S. Transportation equipment: Vibration- damping and acoustic solutions for rail EXAMPLES OF BRANDS/ vehicles and marine applications as well PRODUCT NAMES: CRYOLINE®, DragonCoat®, as off-highway and heavy vehicles. epros®, Forsheda®, KLELINE®, Metalastik®,
Net sales Net sales Employees per geographic market, % per market segment, % per geographic market, %
Asia and rest Asia and rest of of the world, Capital-intensive industry, 36% the world, 9% 10% Oil & gas, 2% South and General Western Western Transportation Central America, South and industry, Europe, Europe, 58% equipment, 20% 4% Central America, 54% 52% 4% Infrastructure construction, 14% North America, North America, 8% 20% Rest of Rest of Light vehicles, Europe, 27% Europe, 8% 10%
Net sales EBIT margin EBIT ROCE Operating cash flow
E E E 000 12 00 1 00
1 10 000 00 1 00 12
0 0 10 0 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17
Key figures, excluding items affecting comparability,sek m 2017 2016 Net sales 5,573 4,924 Share of consolidated net sales, % 18 18 BUSINESS AREA EBIT 631 525 LONG-TERM TARGET FOR EBIT margin, % 11.3 10.7 EBIT MARGIN Capital employed 4,239 4,241 >12% Return on capital employed (ROCE), % 14.8 14.5 Capital expenditures 236 172 Operating cash flow 555 543 Operating cash flow/operating profit, % 88 103 Number of employees at year-end, including insourced staff and temporary employees 3,894 3,722
GRI: G4-4, G4-8, G4-9 ANNUAL REPORT 2017 TRELLEBORG AB 17 TRELLEBORG OFFSHORE & CONSTRUCTION BUSINESS AREA Trelleborg BUSINESS AREA Offshore & Construction Trelleborg Offshore & Construction is a leading global project supplier of polymer-based critical solutions deployed in highly demanding offshore oil & gas and infrastructure construction environments.
Local presence, global reach. The business The market situation in offshore oil & gas area is a dedicated project-based operation. remained challenging in 2017 and the We are continuing to About 55 percent of the business area’s business area adapted the relevant parts develop the various parts of solutions are sold to infrastructure projects, of its business to build a more effi cient the business area in such as marine solutions, while the structure, and will be able to benefi t from infrastructure construction, remaining share comprises solutions for this when the market eventually rebounds. offshore oil & gas. What is common to where local presence these solutions is that thay are designed Sales and earnings 2017. Organic sales and global reach are key to perform in the toughest of environments declined 12 percent compared with 2016, parameters. where there is no room for error. Customers primarily impacted by the subdued market feel secure in the knowledge that Trelleborg situation in offshore oil & gas. Market We are addressing the has so many well-functioning solutions activity in offshore oil & gas rose somewhat challenging situation in already installed and such a comprehensive in the latter half of the year. The order book offshore oil & gas, but are list of references in the respective niches. for this part of the business area remains Often there are no industry standards, at a low level. also preparing ourselves for so customers must feel confi dent that EBIT and the EBIT margin were lower a recovery with the help of Trelleborg can tailor effective solutions compared with the preceding year, mainly innovative solutions and the that meet project requirements without as a result of lower project deliveries in right structure.” re-inventing the wheel. offshore oil & gas but also due to lower The long-term macroeconomic condi- sales in certain niches in infrastructure tions are positive. Globally, there is a major construction. Activities to adapt the organi- Peter Nilsson, need for investment in energy and infra- zation to the lower market activity were Acting Business Area President structure in both mature and emerging carried out during the year and will continue markets. In this context, it is worth in 2018, including a gradual closure of a mentioning the business area’s various plant in the U.S. Exchange rate effects marine technologies, which are contributing from the translation of foreign subsidiaries to the development of the ports of the had a negative impact of sek 8 m on EBIT future, see more on page 44. compared with 2016.
18 ANNUAL REPORT 2017 TRELLEBORG AB GRI: G4-4 TRELLEBORG OFFSHORE & CONSTRUCTION BUSINESS AREA
MARKET SEGMENT PRODUCTION UNITS: Australia, Brazil, China, KEY CUSTOMERS: Companies active in Denmark, the Netherlands, Norway, Singapore, offshore oil & gas and companies that Oil & gas: Polymer-based solutions for the U.K. and the U.S. construct and manage tunnels, bridges, exploration and extraction of offshore oil and buildings, ports and shipyards, including gas, from platform to seabed, with buoyancy MARKET OFFICES: Australia, Brazil, China, construction companies and engineering modules, thermal insulation, bend restriction, Denmark, France, India, Indonesia, Japan, the consultancies. cable and flowline protection, fire protection Netherlands, Norway, Singapore, South Africa, and other engineered solutions. South Korea, Sweden, Turkey, the United Arab PRINCIPAL COMPETITORS: AIS, Balmoral, Emirates, the U.K. and the U.S. Dätwyler, FenderCare, Hutchinson, Mampaey, Infrastructure construction: Sealing and Matrix, ShibataFenderTeam,Tekmar and vibration-damping solutions for tunnels, EXAMPLES OF BRANDS/ Yokohama. bridges and other large construction and civil PRODUCT NAMES: ANDRE, AutoMoor, engineering projects. Marine structures and Elastopipe™, FireNut™, NjordGuard™, smart technologies for berthing, docking and RiserGuard®, RedFine+, SCN Supercone, mooring in ports and offshore. SeaGuard, SeaTechnik™, SmartDock®, SmartPort, Ultra M.I.S., Uraduct® and Vikotherm™.
Net sales Net sales Employees per geographic market, % per market segment, % per geographic market, %
Asia and rest Capital-intensive industry, 100% Asia and rest Oil & gas, 45% of the world, Western of the world, 35% Western Infrastructure 40% Europe, 31% Europe, 51% construction, 55% South and South and Rest of Central Central Europe, 2% America, 2% America, 9% North America, 18% North America, 12%
Net sales EBIT margin EBIT ROCE Operating cash flow
E E E 000 00 1 00
200 1 0 7 2 00 0 0 0 0
0 2 100 200 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17
Key figures, excluding items affecting comparability,sek m 2017 2016 Net sales 3,014 3,467 Share of consolidated net sales, % 9 13 BUSINESS AREA EBIT –56 108 LONG-TERM TARGET FOR EBIT margin, % –1.9 3.1 EBIT MARGIN Capital employed 2,407 3,132 >10% Return on capital employed (ROCE), % –1.9 3.5 Capital expenditures 75 207 Operating cash flow 169 83 Operating cash flow/operating profit, % neg. 77 Number of employees at year-end, including insourced staff and temporary employees 1,659 1,949
GRI: G4-4, G4-8, G4-9 ANNUAL REPORT 2017 TRELLEBORG AB 19 TRELLEBORG SEALING SOLUTIONS BUSINESS AREA Trelleborg BUSINESS AREA Sealing Solutions Trelleborg Sealing Solutions is a leading global supplier of polymer-based critical sealing solutions deployed in demanding general industry, light vehicle and aerospace environments.
Business accelerator. Developing the accounts for a relatively large proportion of optimal solution for customers’ sealing sales today and thus an increased focus We are leading the way in challenges forms the basis for how the on emerging markets in Asia, and the new solutions that make it business area acts; from concept to Americas, is called for. easy for customers to do delivery. Cooperation with and under- business with us. There is a standing of the customers’ business and Sales and earnings 2017. Organic sales their markets is an important parameter, rose 8 percent compared with 2016. All high pace of development in as is being a partner who it is easy to do geographic regions demonstrated a positive the business area. We are business with. organic performance, with sales increasing continuously developing new The business area focuses on multi- to general industry and the automotive and products and solutions. dimensional growth; in geographies and aerospace industries. The strongest organic segments, in innovation and new business growth was noted in Asia, driven primarily by An area deemed to have models. For example, in 2017, the acquisi- favorable sales to general industry. major potential is e-mobility, tion of a U.S. manufacturer of advanced EBIT rose primarily as a result of higher on which we are placing composites for aerospace applications, the volumes, acquisitions and effective cost additional focus. acquisition of a U.S. distributor of seals for control. The EBIT margin was maintained at chemical transportation, the launch of a high level throughout the year, despite a Geographically, we can see several new products and the roll out of the certain impact from completed acquisitions that there are development e-commerce platform, Seals-Shop.com. with lower margins. Exchange rate effects The ambition is to remain leading in from the translation of foreign subsidiaries opportunities in Asia and selected segments and niches. The aero- had a positive impact of sek 9 m on EBIT the Americas.” space segment and niches in healthcare & compared with 2016. medical are deemed to have major potential for the business area. E-mobility is another Peter Hahn, attractive area with extensive opportunities, Business Area President as is the further development of Seals- Shop.com, geographically and in terms of the product range. Western Europe
20 ANNUAL REPORT 2017 TRELLEBORG AB GRI: G4-4, G4-13 TRELLEBORG SEALING SOLUTIONS BUSINESS AREA
MARKET SEGMENT EXAMPLES OF BRANDS/ Agriculture: Sealing configurations for PRODUCT NAMES: American Variseal®, General industry: Precision seals for a hydraulic equipment in, for example, tractors. Busak+Shamban, Forsheda®, GNL, Nordex, range of industrial applications with a focus Oil & gas: Specialty seals in various oil and Orkot®, Palmer Chenard, Polypac®, Rubore®, on O-Rings, rotary seals and hydraulic seals. gas installations. SF Medical, Shamban®, Silcotech, Skega®, Aerospace: Safety-critical aircraft seals Stefa® and Wills Rings®. used in such application areas as engines, PRODUCTION UNITS: Brazil, Bulgaria, China, KEY CUSTOMERS: Global companies active flight control actuators, landing gear, wheels Denmark, France, India, Italy, Malta, Mexico, primarily in general industry, including the and brakes as well as aerodynamic seals. Poland, Sweden, Switzerland, the U.K. and the U.S. healthcare & medical industry, and suppliers Light vehicles: Advanced and often to aircraft and light vehicle manufacturers. MARKET OFFICES: Austria, Belgium, Brazil, safety-critical seals, mainly for fuel systems, Bulgaria, Canada, China, Croatia, the Czech PRINCIPAL COMPETITORS: Federal Mogul, steering, air conditioning and exhaust Republic, Denmark, Finland, France, Germany, Fenner, Freudenberg, Greene Tweed, systems, as well as composite technology Hong Kong, Hungary, India, Italy, Japan, Mexico, Hutchinson, Meggitt, NOK, Parker Hannifin, designed for damping and sealing. the Netherlands, Norway, Poland, Russia, Saint Gobain, SKF, TA Kirkhill and Wolverine. Transportation equipment: Specially Singapore, South Korea, Spain, Sweden, engineered sealing solutions in, for Switzerland, Taiwan, Turkey, the U.K. and example, trains. the U.S.
Net sales Net sales Employees per geographic market, % per market segment, % per geographic market, %
Asia and rest of Capital-intensive industry, 32% Asia and rest the world, 19% Oil & gas, 2% General of the world, 15% Western Western Agriculture, 4% industry, Europe, 46% Europe, 52% South and Transportation 43% South and Central equipment, 12% Central America, 1% Aerospace, 14% America, 3% North America, North America, Light vehicles, 23% 28% Rest of 25% Rest of Europe, 6% Europe, 7%
Net sales EBIT margin EBIT ROCE Operating cash flow
E E SEK M 10 000 2 2 00 2 2,500
22 22 000 1 2 0 1,250 20 20
0 1 0 1 0 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 1716151413
Key figures, excluding items affecting comparability,sek m 2017 2016 Net sales 9,956 8,771 Share of consolidated net sales, % 31 33 BUSINESS AREA EBIT 2,231 1,919 LONG-TERM TARGET FOR EBIT margin, % 22.4 21.9 EBIT MARGIN Capital employed 10,258 10,359 >22% Return on capital employed (ROCE), % 21.6 21.1 Capital expenditures 387 318 Operating cash flow 2,241 1,919 Operating cash flow/operating profit, % 100 100 Number of employees at year-end, including insourced staff and temporary employees 6,356 6,047
GRI: G4-4, G4-8, G4-9 ANNUAL REPORT 2017 TRELLEBORG AB 21 TRELLEBORG WHEEL SYSTEMS BUSINESS AREA Trelleborg BUSINESS AREA Wheel Systems Trelleborg Wheel Systems is a leading global supplier of tires and complete wheels for agricultural machines, material handling and construction vehicles, and two-wheeled vehicles.
Customer integration. The business area’s construction vehicles. At the same time, close customer cooperation is directing its several product innovations were launched, Behind us, we have a labor- global approach to address the market and including the Variable Infl ation Pressure in intensive but successful industrialization shifts that are taking place precision farming, see more on page 44. year as a result of the around the world. Local presence and The long-term ambition is to remain market integration of CGS Holding’s global reach have become key drivers in the leader in selected niches, with unique business strategy. Both of these areas are expertise and offerings. tire business. We worked inextricably linked for both agricultural tires with this integration in two and tires for material handling and Sales and earnings 2017. Organic sales steps, the fi rst being to construction vehicles. increased 12 percent compared with 2016. secure and develop customer There are two cooperation levels for Structural growth contributed 30 percent agricultural tires. The fi rst is professional in total, mainly attributable to the CGS relations. We are still farmers. Through various training initiatives, acquisition. The organic sales trend for tires implementing the second they are able to both experience Trelleborg’s for agricultural machinery, material handling step, which is to optimize solutions and measure the benefi ts using vehicles and construction machinery our production structure and digital tools. The second level is major developed well, with the improvement thus our capacity utilization. tractor manufacturers, where the business gaining momentum during the year. area has extensive co-engineering and EBIT rose sharply, mainly due to the Several exciting innovations co-marketing programs. implemented acquisitions and higher For material handling vehicles such as volumes. The EBIT margin was on a par were presented during forklifts, the business area offers Interfi t, a with the preceding year, despite a sharp the year and more are in unique tire replacement service for the increase in raw material prices in the fi rst the pipeline.” global material handling industry. six months of the year which resulted in The business area continued its integra- signifi cant temporary additional costs. tion work with CGS Holding’s tire business, Exchange rate effects from the translation Paolo Pompei, Mitas, during the year. Through the acquisi- of foreign subsidiaries had a negative Business Area President tion, the business area also secured a impact of sek 2 m on EBIT compared stronger position in the market for tires for with 2016.
22 ANNUAL REPORT 2017 TRELLEBORG AB GRI: G4-4, G4-13 TRELLEBORG WHEEL SYSTEMS BUSINESS AREA
MARKET SEGMENT MARKET OFFICES: Australia, Austria, distributors of forklifts, distributors of tires Belgium, Brazil, China, the Czech Republic, and tire service companies for material Agriculture: Tires and complete wheels Denmark, Finland, France, Germany, handling vehicles and construction vehicles. for tractors and other vehicles used in Indonesia, Italy, Latvia, Malaysia, Mexico, Suppliers of custom-made bicycles and agriculture and forestry. the Netherlands, Poland, Russia, Singapore, motorbikes. Transportation equipment: Tires and South Africa, Spain, Sweden, Switzerland, the complete wheels for material handling United Arab Emirates, the U.K. and the U.S. PRINCIPAL COMPETITORS: Advance Tyre, vehicles, including forklifts and other highly Aichi, Armour, BKT, Camso, Continental, utilized and high-load material handling EXAMPLES OF BRANDS/ Double Coin, Bridgestone, Goodyear/Titan, vehicles, such as construction vehicles. PRODUCT NAMES: Brawler, Cultor, Interfit, GRI Tires, Marangoni, Michelin, Nexen, High-performance tires for bicycles and I-Rent, Maximo, Mitas, Trelleborg, Trelleborg Triangle and Yokohama. motorcycles. Elite XP, Trelleborg M² and Pit Stop Line.
PRODUCTION UNITS: Brazil, China, the Czech KEY CUSTOMERS: Manufacturers and distrib- republic, Italy, Latvia, Serbia, Slovenia, Sri utors of agricultural and forestry machinery, Lanka, Sweden and the U.S. and end-customers. Manufacturers and
Net sales Net sales Employees per geographic market, % per market segment, % per geographic market, %
Asia and rest of the world, 9% Capital-intensive industry, 100% Asia and rest Western Agriculture, 59% of the world, 25% South and Western Europe, 16% Transportation Central Europe, 54% equipment, 41% America, 4% South and Central North America, 2% America, 18% North Rest of Rest of America, 6% Europe, 15% Europe, 51%
Net sales EBIT margin EBIT ROCE Operating cash flow
E E E 000 1 1 000 20 00
12 00 00 1 00 11
0 10 0 0 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 13 14 15 16 17 1716151413
Key figures, excluding items affecting comparability,sek m 2017 2016 Net sales 8,878 6,354 Share of consolidated net sales, % 28 23 BUSINESS AREA EBIT 1,016 720 LONG-TERM TARGET FOR EBIT margin, % 11.4 11.3 EBIT MARGIN Capital employed 13,936 13,058 >15% Return on capital employed (ROCE), % 7.5 7.6 Capital expenditures 403 302 Operating cash flow 773 780 Operating cash flow/operating profit, % 76 108 Number of employees at year-end, including insourced staff and temporary employees 7,251 7,365
GRI: G4-4, G4-8, G4-9 ANNUAL REPORT 2017 TRELLEBORG AB 23 RUBENA SAVATECH Rubena Savatech Rubena Savatech is a leading supplier of engineered polymer solutions to the general and the automotive industries. The business was acquired in 2016 as a part of CGS Holding and has been recognized independently of Trelleborg’s business areas. From the beginning of 2018, the business will be integrated with Trelleborg Industrial Solutions and Trelleborg Coated Systems.
Sales and earnings 2017. Rubena EBIT and the EBIT margin were impacted The companies Mitas, Rubena and Savatech demonstrated stable sales, by effects of the labor shortage and were Savatech were included in CGS Holding. although impacted by the labor shortage in charged with costs associated with prepara- Some tire-related operations formed part parts of the business units. Capacity utiliza- tions ahead of the consolidation with the of all three companies but were inte- tion for most product lines remained at a Trelleborg Industrial Solutions and Trelleborg grated and reported in Trelleborg Wheel high level. A number of investment projects Coated Systems business areas, which Systems as of 2016. It is the non-tire- aimed at increasing manufacturing capacity took place at the beginning of 2018. related operations, Rubena Savatech, for selected niche products are ongoing and that will be integrated into Trelleborg will gradually enable increased growth and Industrial Solutions (59 percent) and profi tability. Exchange rate effects from the Trelleborg Coated Systems (42 percent) translation of foreign subsidiaries had a 1) 2) as of 2018. positive impact of sek 2 m on EBIT compared Rubena offers, for example, engineered with 2016. polymer solutions for seals, sealing profi les and specialty molded components. Key fi gures, excluding items affecting comparability,sek m 2017 2016*
Net sales 1,933 1,063 Trelleborg Industrial Solutions Share of consolidated net sales, % 6 4 Savatech offers, for example, engineered EBIT 166 112 polymer solutions for printing blankets, EBIT margin, % 8.6 10.5 conveyor belts and other products in the Capital employed 2,938 2,665 area of polymer solutions. Return on capital employed (ROCE), % 6.0 7.1 Capital expenditures 183 38
Trelleborg Coated Systems Operating cash fl ow 124 133 Operating cash fl ow/operating profi t, % 75 119 1) A minor associated company will be recognized under Group Number of employees at year-end, including insourced staff and temporary 2,511 2,494 items until further notice. employees 2) Including an elimination item of –1 percent. * Rubena Savatech’s sales and earnings June–December 2016.
24 ANNUAL REPORT 2017 TRELLEBORG AB GRI: G4-4, G4-9, G4-13