Financial Overview

(in million SEK)

	FY2010	FY2009	Rate of change(%)	Factors
Overall
Sales	28,778	27,059	6.4	-
Operating profit	1,952	773	152.5
Automotive
Sales	8,560	7,031	21.7	1)
Operating profit	529	34	1455.9	2)

 

Factor
Automotive
1)

-During the year of 2010, total global car production increased significantly compared with 2009. Production was higher in all geographic regions and the largest percentage increase was in North America. Organic sales for full-year 2010 rose 29% (decrease: 18).

2)
-Operating profit improved strongly during the year due to the strong rise in demand and positive effects from capacity and cost adaptations.

Joint Ventures

-The Company and Freudenberg & Co. KG have signed a letter of intent to form a 50/50 joint venture, which develops and manufactures anti-vibration products. The joint venture will consist of Trelleborg Automotive's operations in anti-vibration solutions and Freudenberg's corresponding subsidiary Vibracoustic. Total annual sales are estimated to be approximately 1.2 billion euros, with 8,100 employees in 17 countries. The formation of the joint venture is expected to happen during 2011. (From a press release on January 17, 2011)

Divestitures

-Finalized the divestment of its operations in brake hoses for light vehicles to French company Flexitech, Inc. (From a press release on April 5, 2011)
-The divestment of its Fluid Solutions business unit to German-based investment company Bavaria Industriekapital AG has been completed. In May 2010, Trelleborg reached an agreement with Bavaria Industriekapital on this transaction. (From a press release on July 2, 2010)

R&D Expenditure

(in million SEK)

	FY2010	FY2009	FY2008
Overall	577	566	513

-During 2010, research and development expenditure amounted to SEK 487 M(482), corresponding to about 2% (2) of sales.

Product Development

-Developed a PTFE (polytetrafluoroethylene) based sealing material Turcon (R) M12, which offers improved wear resistance and friction characteristics. The sealing material is applicable for automotive hydraulic components, such as cylinder for convertible, shock absorber and active body control. Turcon (R) M12 was developed by Trelleborg Sealing Solutions Helsingor, Denmark. (From a press release on March 15, 2011)

Capital Expenditure

(in million SEK)

	FY2010	FY2009	FY2008
Overall	792	754	1,526
Automotive	278	212	463

Investment Outside Sweden

-Completed capacity expansion of its manufacturing facility for anti-vibration products in Noida, India. The expansion has resulted in a 50% increase in manufacturing space. In addition to the anti-vibration currently offered at the Indian facility, the expansion will also see the company introduce production cells for the manufacture of hydromounts at the Noida facility. (From a press release on February 1, 2011)

-Opened a new manufacturing facility in Zavolzhye, Russia. The new facility, which will produce anti-vibration solutions, is the company's first production facility in Russia. (From a press release on September 8, 2010)

-The Company opens a R&D center in Shanghai, China, at the end of 2010. The new facility will develop brake solutions for light vehicles for the automotive manufactures in the nation. Trelleborg Automotive has an existing manufacturing site for anti-vibration components for light vehicles in China. (From a press release on June 16, 2010)