Trelleborg presents new financial targets and new sustainability targets

Trelleborg Group today presents new financial targets and new sustainability targets. These new targets are based on improved conditions for growth and sustainability following the completed divestment of the Group’s tire operation, and on higher ambitions regarding financial governance and sustainability.

“Trelleborg has never been as strong operationally or financially, and it is for this reason that we are continuing to raise our level of ambition. At the Capital Markets Day, we will reaffirm Trelleborg’s latest market outlook for the second quarter of 2023 – that demand is expected to be in line with or somewhat lower than in the first quarter of 2023, adjusted for seasonal variation,” says Peter Nilsson, President and CEO of Trelleborg Group.

The Trelleborg Group’s Capital Markets Day will take place today, beginning at 1:00 pm. The event will be webcast here. During the afternoon, Trelleborg’s strategic priorities and targets, the Group’s financial performance, and progress in sustainability will be presented. All presentations will be available at www.trelleborg.com.

Trelleborg’s updated financial targets
1. Sales growth
Total annual sales growth over a business cycle is to amount to >8 percent.
The previous target was 5–8 percent.

2. EBITA margin
Over a business cycle, the EBITA margin, excluding items affecting comparability, is to amount to >20 percent.
The previous target was an EBIT margin of >16 percent.

3. Return on capital employed
Over a business cycle, return on capital employed (ROCE), excluding items affecting comparability, is to amount to >15 percent.
The previous target was >14 percent.

Trelleborg’s updated sustainability targets within climate, circularity and diversity
1. Climate target
Trelleborg has applied to have its climate target approved by the Science Based Targets initiative (SBTi). The climate target is to halve direct and indirect CO2 emissions (Scope 1 and Scope 2) by the end of 2030 compared with the base year 2021, and, during the same period, reduce emissions along the value chain (Scope 3) by 25 percent.
The previous target was to by the end of 2025 reduce direct and indirect CO2 emissions by 50 percent relative to sales and, during the same period, significantly reduce emissions along the value chain.

2. Circularity
The share of recycled or bio-based raw material is to amount to 25 percent by the end of 2030.

3. Diversity
Several diversity targets are launched, one of which is that there should be at least 30 percent female managers at management levels 1–5 in Trelleborg by the end of 2030.
This is a partially new goal. The proportion of women at management levels 1–4 in the organization was 27 percent at the end of 2022.

More information about Trelleborg’s climate work and sustainability strategy can be found at trelleborg.com.

Other financial changes
Due to the completed divestment of the Group’s tire operation interest rate hedges were closed, yielding a non-recurring financial income for continuing operations of approximately SEK 215 M (approximately SEK 180 M after tax). This amount will be recognized in net financial items in the second quarter of 2023.

As a result of the divestment, the Group’s legal structure was also reviewed. A non-recurring tax expense of approximately SEK 150 M will be recognized for continuing operations in the second quarter of 2023.