Trelleborg AB (publ)

Thank you and welcome to all of you for listening in to this presentation of the first three months of 2026 for Trelleborg. As usual, I, Peter Nilsson, will start and then I will also supplemented by Fredrik Nilsson, our CFO and also on the call here is also Kristoffer Sjögren, our head of IR. And as usual, you're going to use the slide deck, which has been on our webpage for some time, and use that to guide us through the call. And then we move to page one on that one, and quickly moving to page number two, which is the agenda slide, as usual, starting with some highlights, general highlights for the group, and then also comment individually on our three business areas. Then Fredrik will guide us through the financials, and I will then be joining you again for a summary and some comments on the outlook for the running quarter, and then finishing off with a Q&A at the end of the call. Turning to page three, good start of the year, solid start in multiple aspects. Sales ended up at the slight north of 8.6 billion Swedish, a decrease in Swedish krona by 3%, but behind that is a fairly solid organic sales growth of 4%, M&A is also adding another 2% and then as most companies or every company reporting in Swedish Kronos we have a fairly strong headwind from the currency bringing down the sales in Swedish Kronos by 9%. EBITDA is slightly shy of 1.6 which is slightly down compared to a year ago but fully then explained by also this Currency effects ending up at the margin 80.4, which is slightly higher than last year. And also the highest to date, highest margin to date for us for a first quarter. I wanted to comment on current resolution, fairly solid, bringing down it by 132 compared to the currency rates a year ago. Earnings per share is then up by 5%. Are we benefiting from a better financial net? which is then and also from buybacks of shares, of course. We have, as usual, some items affecting comparability relating to ongoing restructuring programs slightly lower than a year ago and ending up at minus 42. Strong cash flow for a first quarter. Good cash generation and good management working capital and also benefiting from slightly lower capex in line with guidance. And we also, which I already commented on, we continued to do share buybacks and exactly ended up at exactly 500 million in the quarter, which is a little bit odd, but nevertheless, it's perfectly 500 million. We also know to continue to do Bolton acquisitions and we acquired Nexus Elastomer Molds, which is then being added on to Seed Solutions, a company actually a little bit Different acquisition compared to what we did before. This is more kind of a technical acquisition for us, which is benefiting us in the manufacturing processes and adding tooling and automation expertise very much in the core of what we do. Turning to page four, as I'm commenting on the sales growth, solid organic growth in Europe. Also, solid organic growth in America and Asia and the rest of the world and then slightly negative. But all in all, as already commonly turning up to a solid organic growth of 4%, which is quite an improvement compared to a year ago and also improvement compared to last quarter. Page five, agenda again. Business areas, turning quickly to page number six. and starting with industrial solutions, a slight organic growth, I mean organic sales ended up slightly positive, M&A adding another 3%, but of course also here in the reporting is the Swedish Kronos, we also have a headwind here coming from the negative current translation rate, which is then bringing down the actual figures lower than a year ago. And also, if you look on this one, we already commented on that, which is kind of in line with what we have commented before. We continue to have slightly lower product delivery, as I said, but also with that comment, there's also a good order book related to this, and we are not concerned for the full year impact from this. We also note that, I mean, as most segments are improving, we don't see really any improvement yet. on the construction industry. So that is still very much down compared to if you call it the normal level or the way it was a few years ago. Very good performance in aerospace, which is benefiting us. And all in all, we are slightly down on the margin here due to sales mix. And we do expect that to get back to more on par year on year following going into next quarter. We're going into the running quarter, we should say. Page seven. Solid organic sales growth, medical solutions, organic sales is up by 5%, a strong quarter. Solid sales growth, both in Europe and North America, while Asia was a bit more sluggish for us in this quarter. Also linked a little bit to different kind of startup and different... Yeah, variety of inventory buildup among our customers. Life science segment, although small in totality, but we continue to deliver strong sales growth. And if you look at EBITDA, we keep the margin, but I mean, the absolute EBITDA is down a little bit also here, impacted heavily by currency translation effects. Turning then to page eight, On Trelleborg Ceiling Solutions, same heading here. So for our medical solutions, solid organic sales growth. Organic sales up by 6% and another 2% added by M&A. Sales is actually quite good all across the regions in the industrial segments. And then most of our subsegments also in this industrial space is developing nice in the quarter. Automotive sales. segment declining a little bit for us and that is we continue to have a little bit challenge in the aftermarket sales it's our sales I mean so that is where we are waiting a little bit for a bounce back in that aerospace segments continue to have very robust global growth benefiting overall for the business area margin is then also up on the basis of this fairly solid organic growth, and we are up by 1.6 percentage points compared to a year ago. And that is on the back of these higher volumes, but also operational improvements kicking in. And then we should say, especially on the absolute EBITDA figure, of course, we're impacted also by the, as on all of the business, impacted by the negative effects, translation effects. Acquisition of Nexus, I'd already commented on that, which is a kind of a technical acquisition adding to more operational improvements and actual sales improvements. Turning to page nine, commenting a little bit on sustainability. We're actually flattish year on year. We are getting to levels where... where it's getting more challenging to improve and it's actually not that much in absolute figures anymore. We are of course working further and we do expect continued improvements but there is not a lot to do anymore in this and the same applies if you turn to the next page. Page 10 is also that we're running on a very high level on renewable and fossil free electricity. although up by one percentage point year on year, but the final percentage here is more challenging to improve further. But once again, of course, we're working with it, and we do expect a slight improvement also going forward in this aspect. Turning to page 11, agenda again, and financials, and then turning to page 12 and handing over to Fredrik.

Thank you, Peter. Let's now move to page 12, starting looking at sales development. Reported net sales declined by 3% in the quarter from 8,866,000,000 to 8,606,000,000. As Peter mentioned, there was a significant negative translation effect in the quarter of 9%. We have good organic sales growth of four and then structure added two in the quarter. Moving on to page 13, looking at the sales growth trend. In the first quarter, we had a good 6% at constant FX. So a really good and strong sales growth trend in the quarter. Moving on, page 14, showing the quarterly sales in the rolling 12 months for continuing operations. As I said, 8.6%. billion in sales. And if we're looking at the rolling 12 months basis, it was 34.1 billion in sales. Page 15, looking at the EBITDA, excluding itis affected comparability, down 2% to 1,586,000. In the quarter, there was also a significant negative translation effect of 132 million in the quarter. And at fixed FX, EBITDA improved by 6%. And then looking at the EBITDA margin, up from 18.2 to 18.4, which is actually the highest margin for first quarter ever. And the margin improvement was due to the organic sales growth and continued operational improvements. Moving on, page 16, looking at EBITDA and EBITDA margin on the rolling 12. Here you can see that the rolling 12, it was 6,256 and a margin of 18.4. And you can also see in the chart here that it was EBITDA has been flat during the last 12 months, but we have had a material negative FX impact during this period. Moving on. To page 17, looking into some more details in the income statement. Looking at items affecting comparability in the quarter, minus 42 million, which was related to restructuring. Then, as also Peter mentioned, looking into the financial net, there was some good improvement from minus 144 to minus 102, and that was due to lower interest costs. And then on the tax rate, 25% in the quarter, which was in line with a communicated guidance for the full year as well. Moving on, page 18, earnings per share. A good improvement of 5% in the quarter from 4.28 to 4.50 when we're looking at excluding items affecting comparability. And the main reason here for the improvement was, of course, the lower financial net. the ongoing share buyback program, which was then partly offset by some negative translation effects. And then if we look for the group, including ITS effect and comparability, we have an improvement of 7% in the quarter. Turning to the next page, looking at the cash flow, good cash flow in the quarter, up 14%. And if you're looking at the chart on the left side of the slide, you will see there was a good improvement in working capital. And as always, we have a negative working capital in the first quarter due to normal seasonality. And then also looking at the capex, good improvement of 100 million in the quarter between 26 and 25. Going to page 20, cash conversion. increased to 95% and we have a good high cash conversion ratio in the quarter. Moving on to page 21. Gearing leverage development. Net depth at the end of the quarter amounted to 7.8 billion SEC. Share buyback of 500 million in the quarter as Peter mentioned. We have a depth equity ratio of 21. And net debt in relation to EBITDA ended at 1.1. In other words, our balance sheet continued to remain very strong. Moving on, page 22, returning capital employed. You can see it's ended at 12.3. We have had a flat capital employed compared to prior year. But the good thing is that the rocket trend continued from Q3 2025 and continued to Gradually improve upwards upwards And then finally moving over to page 23 looking at the financial guidance Which is unchanged compared to what we communicated in January, but just to repeat capex Estimated for the full year to be 1 billion 450 million restructuring cost of 375 amortization internables 650 and the underlying tax rate of 25%. And by that, I would like to hand back the microphone to you, Peter.

Thank you. I'm turning then to page 24, agenda slide again, and moving to the next section of the presentation, summary and outlook, turning to page 25. Good start of the year. That is the way we look at it. We have an improved demand, seeing across multiple segments, while recognizing that we have a turbulent world and some big things happening in a lot of areas, which will impact the economies. But honestly, we don't see it really in our businesses. We have a better order intake. We have a positive book to build in the quarter. And we therefore also get back to the guidance on the next page. But then we see actually an improvement here also quarter on quarter. On top of that, margin improvement, I mean, it's not some big steps, but we continue to improve the margin and we continue to push it towards our long-term objectives. We also note we have, let's say, a quite heavy adverse currency impact in the quarter. I cannot really remember when we had similar headwind from currency before. I mean, 9% is big figures and 130% million Swedish also on the EBITDA, but nevertheless managing it in a good way. And I think it also shows when you look at the margin in combination with the currency impact that we don't really have any kind of transactional, a lot of meaningful transactional exposure. So it's a pure translational exposure that we are exposed to. And we also know that we continue to do share buybacks. We bought, as I said before, we actually hit exactly 500 million in the quarter and we're going to continue the same pace and here hopefully here also hopefully very likely here in the next few hours we will have our annual meeting and then we'll get the mandate to continue with these buybacks and turning down to page 26 to comment a little bit on the running quarter I already see that it is we believe with on the backing of the good Development in the first quarter. We believe that we're going to have actually improvement here quarter and quarter and you also want to Comment that is also we really in the quarter. We don't see any pre buying coming from these extra Extra costs are going to hit us in in multiple areas So we don't see that impacting us in March and honestly we don't see it in the order book either happening really in Q2 yet and But let's see what happens. But once again, on the backing of a good development and improved demand in most industrial segments, continued good demand in aerospace, also automotive, although a mixed picture, but we don't really see any downturn there either. It's a bit bumpy in the medical area. Some of the customers are ordering in big, big bulks. But also here, we have had a solid order intake and we also look positive going into the running quarter. Of course, all of this is comment on, we already said, there is a challenging geopolitical situation in several parts of the world, and who knows what impact that will bring us if it's escalating in different areas. Could be positive, could be negative, but nevertheless, we recognize that this is a higher uncertainty than usual. So then turning to next page, page 27, and quickly turning to page 28 as well, and opening up for questions. So please go ahead.