2012-12-06 TRELLEBORG GROUP 1

Capital Markets Day Peter Nilsson, President and CEO Berns, December 6

Introduction TrelleborgVibracoustic

2012-12-06 TRELLEBORG GROUP 2

The skills and strengths of both organizations are perfectly blended Global leader in automotive antivibration solutions

  TrelleborgVibracoustic was formed in July 2012, in a 50/50 joint venture between Trelleborg and Freudenberg

  Close to perfect match between two industry leaders

  Complementary in: - manufacturing footprint - R&D footprint - product portfolio - customer footprint

  Most global presence

2012-12-06 TRELLEBORG GROUP 3

Will create shareholder value Global leader in automotive antivibration solutions

  Revenue and cost synergies

  Sustainable growth above market development

  EBIT-margin that exceeds industry average

Guest speaker today is Lennart Johansson, Managing Director for TrelleborgVibracoustic

TrelleborgVibracoustic Lennart Johansson Managing Director December 6th, 2012 4

Agenda

▼  Introduction

▼  Market overview

▼  The global leader in antivibration solutions

▼  Strategy and the way forward

▼  Summary & conclusion

5

6

A 50/50 joint venture based on a strong heritage

�  Founded 2012

�  1.6 bn € sales*

�  8,800 employees

50%

50%

▼ Founded 1905 ▼ 3.4 bn € sales1

▼ 21,500 employees1

▼ Founded 1849 ▼ 6.0 bn € sales1

▼ 35,000 employees1

▼ 790 m € sales ▼ 5,500 employees

▼ 690 m € sales ▼ 3,300 employees

AVS

* Sales R12M (September 2012)

1 Source: Company data, 2011 Annual Report

Of which:

Of which:

A snapshot on TrelleborgVibracoustic

�  Global market leader for automotive antivibration solutions with a market share of 15%

�  All top OEMs and Tier 1 suppliers served around the globe

�  Six business areas covering a complete product portfolio for passenger cars, commercial vehicles and trailers

�  Strong product innovation pipeline

�  Most global footprint with 32 production and 6 pure development sites in 18 countries

�  ~8,800 employees generating annual revenues of 1.6 bn € (Sept 2012 R12M)

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� Providing damping and spring functions

� Preventing the engine mass shifting, improving ride, handling and safety

� Preventing noise transfer through the vehicle’s steel structure

� Absorbing shock input – improved road holding and driver safety

� Helping to provide system durability

� Protecting the road surface

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Ensures comfort, safety, and durability in all vehicle systems by:

Antivibration solutions – critical components

9

Antivibration solutions driving vehicle comfort, safety and durability on a global scale

…and less weight and optimal load protection with antivibration solutions

Increased comfort and safety with lower emissions and reduced cost…

Agenda

▼  Introduction

▼  Market overview

▼  The global leader in antivibration solutions

▼  Strategy and the way forward

▼  Summary & conclusion

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Automotive market with growth potential

Source: LMC Global Automotive Production Forecast (vehicles up to 6.5 t) / September 2012

Estimated global automotive production

12

mill

ion

units

74 77 82 85

93 99

104 109

0

20

40

60

80

100

120

2010 2011 2012 2013 2014 2015 2016 2017

CAGR = 6%

13

Source: LMC GAPF 09/12, LMC GCVF 0912, internal TBVC estimates

Commercial vehicle demand continues to grow m

illio

n un

its

1.9

2.8 3.0 2.9 3.0

3.3 3.5 3.6

0

1

2

3

4

2010 2011 2012 2013 2014 2015 2016 2017

CAGR = 4%

Estimated commercial vehicle production

Major regional differences in automotive build

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Source: LMC Global Automotive Production Forecast (vehicles up to 6.5 t) / September 2012

12.7 6.7

15

4

41

2.0

14.3 9.1

18

5.8

59

3.1

0

10

20

30

40

50

60

70

Western Europe

Eastern Europe

North America

South America

Asia Rest of world

2012 2017

mill

ion

units

2012

Top 20 28%

Others 72%

2017

Top 20 47%

Others 53%

� Approx. 50% of volume built on 20 global platforms in 2017

�  10 of top 20 platforms developed in Asia

� Global footprint prerequisite for winning projects

OEM platform strategy is driving change

Share of top 20 global platforms Comments

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TrelleborgVibracoustic currently present in 19 of top 20 global

platforms

TrelleborgVibracoustic double growth compared to underlying market

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Average AVS content per car: €100+ Average AVS content per truck: €500+

Source: LMC GAPF 09/12, LMC GCVF 0912, internal TBVC estimates, does not include aftermarket potential

121

142

50

75

100

125

150

50

75

100

125

150

2008 2009 2010 2011 2012

Light vehicle production, 2008-12 (index) TrelleborgVibracoustic sales, 2008-12 (index)

TrelleborgVibracoustic’s sales vs. underlying LV production

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Key market drivers

Market characteristics

Entrance barriers

�  Fragmented market

�  Few global players supplying global

platforms

�  Consolidation expected – organic /M&A

�  Emission legislations

�  Electric vehicles / hybrids

�  More advanced solutions

�  Demand for comfort

�  Low cost relative critical

function and value

�  Global footprint – R&D and

manufacturing

�  Polymer expertise

�  Engineering & design

expertise

�  Simulation & testing

�  OEM global supply approval

AVS: ~10 bn € market with fundamentals supporting strong growth

Source Roland Berger/TBVC research

Technology change triggers further AVS market growth

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Measure Fuel Economy Improvement Potential

Impact for AVS Market

The Solution

Start- Stop 10-15% Sudden changes in drive mode require variable damping and stiffness, active and switchable mounts. Increased number of starts require isolators with improved durability.

Cylinder deactivation 8-12% Sudden changes in drive mode require variable damping and stiffness, active and switchable mounts

Turbo-Charging 10-15% Source of high frequency noise: Increased cylinder pressure requires more torsional vibration damping.

Super-Charging 5-7% Source of high frequency noise: Increased cylinder pressure requires more torsional vibration damping.

Dual Clutch, Variable Transmissions

5-10% Source of high frequency gear whine tuned mass dampers

Additional forward gears 2-5% Source of high frequency gear whine tuned mass dampers

Weight Reduction (for every 45kg, circa 3% of GVW)

1-2% Demand for smart design, new materials, composites, fewer components.

Source LMC Automotive Market Presentation Oct 2011

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Agenda

▼  Introduction

▼  Market overview

▼  The global leader in antivibration solutions

▼  Strategy and the way forward

▼  Summary and conclusion

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�  Most comprehensive geographical footprint �  Most comprehensive customer portfolio �  Most comprehensive product range �  Engineering and technology leader �  Best global partner for OEMs

�  Fully focused on one segment in automotive market �  Best positioned in the industry

�  Two global leaders sharing best practice �  Cost efficiency in all dimensions �  Synergies

Global leader in antivibration

solutions

Focus on growth

Cost & capital efficiency

TrelleborgVibracoustic – a winning combination

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The clear leader in a fragmented market

Tokai 12%

Continental 5%

Bridgestone 5% Cooper

Standard 4%

Toyo 4% Hutchinson

3%

Yamashita 3%

KKC 2% Dong Ah

2%

Anvis 2%

Pyung Hwa 2%

Others 36%

Estimated global market value for automotive AVS €10 bn

Source: TrelleborgVibracoustic internal estimates

ZF Friedrichshafen 5%

TrelleborgVibracoustic 15%

�  Market share varies considering market segments and geographies

�  Product scope varies greatly among competitors

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Competitive edge from broadest product portfolio

Source Roland Berger/TBVC research

Chassis Mounts

Engine Mounts Air Springs TVD Isolators &

Dampers MCU

TrelleborgVibracoustic # # # # # #

Tokai # #

Toyo # # # #

ZF Friedrichshafen # #

Cooper Standard # #

Continental # # # #

Unrivalled global footprint

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32 manufacturing incl. 11 with engineering facilities

6 dedicated R&D centres

Taubate, BR

Guarulhos, BR

Shanghai, CN

Daegu, KR Yantai, CN

Chandigarh, IN

Wuxi, CN

Zavolzhye, RU

Most complete emerging markets presence

East London, ZA

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Manufacturing Dedicated R&D centres

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A balanced customer portfolio (2011 proforma sales)

VW

Ford

GM

Daimler BMW

Renault Nissan

PSA

Fiat / Chrysler

Asian OEMs

Other passenger

cars

Trucks

Source: Estimated end-user customer (incl. tier 1-2)

Future innovation drivers

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High Frequency

Noise

Cost Reductions

Improve Performance

Weight &

Space Saving

Integrated Mass Dampers

Thermoplastics

Decoupled Pulleys

System Integrated Dampers

Improved Spring Rate

Active Mounts

Dual Rubber Bush

Fuel Efficiency

▼  R&D: 5% of sales ▼  > 50% sales with products

younger than 4 years

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Accelerating growth

Cost optimization

Increased negotiation

power

Unlocking synergies for further profitable growth

�  Offering full product range to a wider client base �  Cross selling to each others‘ client base �  Best positioned for global platforms evolution

�  Manufacturing footprint optimization �  Parts standardization �  R&D efficiency improvement �  Streamlining overhead and administration

�  Larger purchasing volumes �  Aligned design processes

Agenda

▼  Introduction

▼  Market overview

▼  The global leader in antivibration solutions

▼  Strategy and the way forward

▼  Summary & conclusion

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1 | Be the leading global automotive AVS supplier and

solution provider

2 | Have sales geographically mirroring vehicle production

3 | Aim for a significant market

share in selective must-win innovation areas

4 | Become the cost leader

in the industry

Long-term strategies for profitable growth

29

30

1 | Be the leading global automotive AVS supplier and

solution provider

2 | Have sales geographically mirroring vehicle production

3 | Aim for a significant market

share in selective must-win innovation areas

4 | Become the cost leader

in the industry

Sustainable growth above total market development EBIT margin exceeding industry average

Long-term strategies for profitable growth

31

Way forward from July 2012 to end of 2015

▼  Common culture, structures, systems and procedures

▼  Best practices, purchasing, manufacturing footprint and scale efficiencies

Integration

Identification of synergies

Implementation of savings

Execution of profitable growth strategy

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Significant margin potential from optimizing and scaling up business

▼  Global footprint

▼  Cost base optimization

▼  Standardized engineering / R&D

▼  Standardized production ▼  Cross-selling

▼  Combined purchasing

6.0% 7.5%

10%

2011 2015 2015

Underlying EBIT-margin potential

Proforma incl. Synergies*

excl. Synergies*

Margin enhancement drivers

* Based on current market estimates by LMC

Agenda

▼  Introduction

▼  Market overview

▼  The global leader in antivibration solutions

▼  Strategy and the way forward

▼  Summary & conclusion

33

Leveraging market drivers and customer demands

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Technology development

Consolidation

Globalization

Cost pressure

Strong foundation for profitable growth

� Global leader in antivibration solutions

� Strongest and broadest product portfolio

� Stand-alone entity with full strategic flexibility

� Presence in 18 countries with global R&D footprint

�  Leading presence in emerging markets

� Solid financial base

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Execution &

leverage platform

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Welcome to the World of Trelleborg