Trelleborg AB (publ)

Welcome to the Trelleborg Hue 3 2026 report presentation. For the first part of the presentation, participants will be in listen only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Peter Nielsen and CFO Frederick Nielsen. Please go ahead.

Thank you. Welcome all of you to this quarter three call for 2026 for Trelleborg. Presenting myself, Peter Nilsson, President and CEO of Trelleborg and also joined on the call, Fredrik Nilsson, our Group CFO. We'll guide you through some of the financials and also on the call and available for potential questions. and guidance is also Christopher Sjögren our head of investor relations and as usual we are gonna speak through the slide deck which is you can find on our web page and quickly moving to that and then moving to page two on that slide deck agenda for the call which is then as usual we started with some highlights some individual comments on the business areas Fredrik will then guide us through financials and then we will sum it up with some summary and also some comments on the outlook for the running quarter and then finishing up as usual as well with the Q&A session. So then moving to page three in the Sladec. Headline for this report, strong growth and record high margin. It is the best ever quarter for us in terms of both sales, absolute profit and margin. so solid quarter if you're looking on the totality increase of 8% compared to a year ago which is organic sales is up by six and then we are also supported by some M&A and currency with one percentage point each and that means also these higher volumes we feel well managed and then our profit is up by some 16% and then all in all it also delivers a margin of 19.3 which is both in terms of EBITDA and margin highest to date for a single quarter for Trelleborg and that also then boils down to earnings per share is also up well managed also on the financial costs in this quarter which means that we have an even higher increase in earnings per share in the quarter compared to a year ago We still, as usual in Trelleborg, we continue to invest in a better structure. So we also have some restructuring costs basically in line with what we had a year ago. Cash flow also solid. I mean, on this higher growth, of course, that is entailing a little bit higher inventory, a little bit higher accounts receivables, but all in all well managed. And we managed also, although on these much higher sales, we managed to also deliver good cash flow. also note we continue to do buybacks on a level as before 538 exactly in this quarter and we continue to then do buybacks in on the around this 500 million a quarter it has been for some time and it's also the plan going forward we also note with satisfaction we are in the quarter. We have bought MR Dichtungstechnik in Germany, which is a small bolt-on for us, important, which is then supporting us in one specific niche for what we call extruded profiles, extruded SEALs benefiting us there in an issue part of that market and we also have signed in the quarter we signed an agreement to acquire Cascade in Washington state outside of Seattle aerospace oriented asset which we are very happy to welcome to the Trollberg family and also We have also managed their post actually the closing of Q3 to sign another one Produkta which is also extruded profile ceiling profiles specifically for the construction industry with the focus on Italy and the Southern Europe where we are supplementing us specifically by adding presence in some geographies where we had a little bit more limited presence before and we also just here the other day another acquisition let's say related to aerospace called Tremac which has also been signed and waiting for closing so all in all a very good quarter for us where a lot of things has been moving in the right direction I mean this is a result overall of our continued focus on specific segments we see especially strong I get back to that later as well but we want to note already here that we have specific strengths in some of the focus areas for us like aerospace, Semicon, LNG and others which is kind of slow movement in the right direction slow movement towards these more attractive segments and that is where the game plan also going forward is the same, that we can continue to move in the same direction. Moving to page four, a little bit individual comments on the growth in the quarter. We note, as you see, a relatively same growth globally and not a lot of difference for us between Europe, Americas and Asia. This is, as you know, we have some product related sales, which is kind of making the Asian sales a little bit Plus five is not bad, but nevertheless it's down compared to a year ago. We had more project sales in Asia a year ago and the opposite in Europe. We had more project sales in this quarter than we had a year ago. But overall, as you say, fairly evenly split for us. And it is the two percentage points up compared to a year ago. So very solid development all over the world, if you put it like that. Turning to page 5 agenda slide again business areas and then quickly turning to page 6 on Trelleborg industrial solutions solid organic growth we are back solid organic growth as we said product sales is up by 4% and we also have some M&A kicking in here as well so that's adding another 2% so we are seeing this positive momentum as we guided for before we see infrastructure marine projects more deliveries in the quarter and by the way which we also see that's going to increase the growth going to continue here into Q4 not a big change in construction demand which is both residential and let's say and commercial construction continue with a very let's say slow demand in a way not really big changes compared to a quarter ago but nevertheless no real uptick yet in this segment automotive and rail is also down slightly it is not really any big big movements in those areas and rail is more product related to be direct on that one while automotive of course we continue to see relatively good development in Asia and Americas while Europe slightly softer. Aerospace strong I mean that is also benefiting industrial solutions and benefiting even more when we look at ceiling solutions later and we continue to see very very strong aerospace in more or less all aspects both commercial space and defense so that is kind of driving in all directions EBITDA up but margin is down a little bit due to sales mix and that is related to the project related sales which was kind of stronger in a certain area last year where we had a very strong margin in that area which we didn't have kind of this year but overall let's say a step in the right direction for industrial solutions and we looking with more confidence going forward already commented their acquisition is a small acquisition it is a more addition technique but nevertheless adding some some strengths in an area where we were a little bit weaker in Europe more speciality ceiling profiles for less and more engineered applications so that is gonna we're gonna benefit from that it's not gonna move the needle a lot but that is the way we work. We are strengthening already strong positions and this is kind of a bolt on which is adding some skills in an area where we already have a good position. Turning to page 7 medical solutions. we have a slight decline due to tough comps what we had as those of you following us for some time you remember a year ago we guided for a very strong growth we are plus 13 a year ago where Let's say more than half of that growth was actually coming from one individual startup of a new program. So the underlying is still moving basically the same as a year ago in terms of if you adjust for that, you get to kind of same growth this quarter as we had a year ago for the underlying business. We see good demand in North America and Europe, a little bit weaker market in Asia where there is some reset of some of our customers. We are not kind of concerned about that. long term but in this quarter is hitting us a little bit and that means in total that EBITDA and margin is somewhat down no big numbers here as you say we're talking let's say a million euro down compared to a year ago but nevertheless it's down and that is of course impacting the margin and also here we need to note that the comparison numbers was kind of tough in the quarter and there's also some mix where we can explain that with some let's say customer deliveries once again there was an extraordinary delivery a year ago and that is also impacting this comps here when we look at both EBITDA and also with satisfaction you know we have since a few months up and running Costa Rica facility which we are expanding into one of the kind of medical valleys of the world Costa Rica is growing a lot of medical down there and we are satisfied to see that that is now starting to make money for us and we're starting to to get some sales, some commercial sales. We have done some trial sales for quite some time, but there's some approval processes and everything, and now the approvals is in place. And now we are starting to grow that facility and starting to deliver for that. We expect more of that going forward, but it is nothing happening overnight. But the direction is clear and we will see benefits going forward on this Costa Rica investment that we have done in Trelleborg Medical Solutions. So moving on to page eight, ceiling Solutions, strong sales and profit growth, very solid quarter organic sales is up by nine. I mean, we had a few quarters here with good growth. M&A also adding a percentage point. We see basically healthy growth in industrials. all over and especially then what we report within industrial the semiconductor sales is very strong especially in Asia where we see both start up with new customers and also with existing customers ordering more and that is an area where we are investing we are expanding in China we are also looking to some other investments in that area in order to be able to follow the growth in this segment automotive sales for ceiling Solutions is up especially supported by Asia and North America and there we see especially for those of you following it now we have a brake shim kind of ceiling anti-vibration product which is now where we have been suffering a little bit in the aftermarket there's some pickup in the aftermarket and also generally actually a good demand we continue to see benefits of our if I may say our superior solution compared to Our competitors we continue to grow market share we continue to grow in the OE and now in this quarter as I ordered common supported also with some bounce back if I may say in the after markets for this product so overall good aerospace very strong if I say globally continue to move in this and we are very satisfied also that we although not in the figures yet but we continue to do to work on let's say bolt-on acquisitions here and we are working on our product portfolio we're working on our customer access if I may say and then that is also where we see possibilities also going forward but very strong in aerospace and continued we expect that to continue to be very strong for quite some time Overall EBITDA margin then is up by almost three percentage points which of course very strong and let's say overall here which I started to comment on overall business we see this also as a result on growth in prioritized segments where we creating foundations in all of these sub-segments we'll be focusing in order to get better growth but also get the profitability as we go so good delivery of ceiling solutions and also confidence going forward. Page 9, sustainability, we are on a very good level, I mean we continue to bring down the CO2 emissions, getting to levels where it will be more challenging to improve further and that is why the focus here is maybe to go forward to maintain this level and do some fine tuning in order to get it even better, but well managed and very well under control and the same applies to the next page, page 10, where we have basically all electricity we buy now is is kind of renewable or fossil free electricity after 97 percent the remaining three percent in some geographies is kind of impossible to to get kind of fossil free and renewable energy because that is not kind of available to buy on in some geographies and that is basically where we are at the moment so this is not possible to improve further without really substantial investments so we focus going forward is to keep it on this very high level. Page 11 agenda slide financials and then leaving to Fredrik for page 12.

Thank you Peter. Starting with sales development reported net sales increased by eight percent in the quarter up to nine billion two hundred thirty two million highest sales for a quarter organic sales growth of six percent in the quarter industrial solution plus four ceiling solution as Peter mentioned plus nine and medical solution decreased by one percent as you can also see on the slide we have some positive translation effects added one percent in a quarter and structural changes added another percentage point. Moving on to page 13, looking at the sales as fixed FX. Here you can see that we achieved 7% sales growth at constant FX, which is almost in line with our sales target of 8%. Moving on to page 14, looking at the rolling 12 months development for sales you have 35.3 billion sick, and you can see here it's ticking upwards. Moving on, page 15, EBITDA and EBITDA margin. EBITDA-excluded items affecting comparability increased by 16% to 1 billion 781, which is the highest quarterly EBITDA and margin ever. And in the quarter, we also have a positive impact of 21 million in translation effects. Margin-wise, up from 18.1 to 19.3. And here you can see the margin improvement is due to the focus on fast-growing segments, which is paying off with higher demand. Continue to page 16, looking at the rolling 12-month trend. You can see we are now at an EBIT A of 6,670,000,000, which translate into a margin of 18.9 on a rolling 12 months basis. And you can also see here on the page that we are up 5% during the last 12 months. But please remember that was a quite significant FX impact during Q1 and Q2. Moving on to page 17. Going into some more details on the profit and loss statement, you can say ITAS affecting comparability of 67 million in the quarter and it's entirely related to restructuring. Financial net, 109 million negative versus minus 126 12 months ago. The improvement here was primarily attributable to positive FX effects on credit facilities. And I would also like to highlight here going forward, we expect that the financial net will be somewhat more negative due to the higher interest rate that we are seeing. And the tax rate for the quarter, 25%, which is in line with our communicated guidance for the full year as well. Moving on, page 18, earnings per share, a very nice improvement as Peter mentioned. up from 420 to 515, excluding items of effect and comparability, so an increase of 23%. And that is mainly due to improved EBITDA, improved financial net, and also the effect of the ongoing share buyback program. And if we include items of effect and comparability, up from 394 to 492. Turning to page 19, looking at the cash flow. And as you can see here, a very solid cash flow for the quarter, up 6%. We continue to see a good improvement of EBITDA. Working capital, as you can see, is slightly negative. Two main reasons here, accounts receivable is increasing due to the higher sales growth. And we have also built up some inventory to secure that we can support the organic growth. Lower capex by 26 million in the quarter has also a positive impact. Moving on to page 20 looking at the cash conversion and you can see that we continue to have a very good cash conversion. So the last 12 months ending up at 95%. Page 21 looking at the gearing and leverage development. We ended the quarter with a net debt of 9,418,000,000. Did share buyback of 538,000,000 during the third quarter. And as you can see here on the page, the debt equity ratio, 24%, and the net debt divided by the EBDA, 1.2. In other words, our balance sheet remains very strong. Moving on, page 22, the return on capital employed. You can see it's excluding items affecting comparability, ended at 13% end of the quarter. And as you can see on the page here, you see the nice trend from Q3 2025 continues, and we are gradually improving our return on capital employed. Turning to page 23, the financial guidelines for the full year. look starting with capex 1 billion 450 million unchanged as previous communicated restructuring costs going up from 375 to 550 and that is due to faster execution of projects or drivenly planned for 2027. this should imply lower restructuring next year amortization of internables unchanged 650 million and underlying tax rate also 25%. And by that, I would like to hand back the microphone to you, Peter.