Trelleborg — Interim / Quarterly Report 2009

Feb 16, 2010

Year-end Report 2009

President and CEO Peter Nilsson

"In an exceptional market situation, our organic sales for the full-year 2009 declined 21 percent compared with 2008. By focusing on our most valuable businesses, quickly adjusting our capacity and increasing the speed of the ongoing action programs, we have adjusted our operations.

"During the fourth quarter of 2009, the EBITDA margin was slightly more than 10 percent compared with slightly less than 4 percent in the year-earlier period. It was particularly satisfying that the actions implemented within Trelleborg Automotive began generating effects.

"Efficient management of working capital and a gradual improvement in earnings led to a doubling of operating cash flow to SEK 3.2 billion during the year. Together with the rights issue during the year, this generates financial strength that provides freedom of action moving forward.

"The development of the demand going forward remains uncertain. We have now however a more efficient structure with increased flexibility to accommodate future market changes. The Group's strategy remains. The priorities include continuing to improve the company's structure and geographic balance, increasing synergies in the Group and refining the product portfolio."

• Net sales in the fourth quarter totaled SEK 6,756 M (7,343). Net sales for the full-year 2009 amounted to SEK 27,059 M (31,263).
• Operating profit in the fourth quarter rose to SEK 197 M (loss: 800). Items affecting comparability amounted to an expense of SEK 231 M (expense: 792). Operating profit for the full-year 2009 rose to SEK 773 M (374). Items affecting comparability amounted to an expense of SEK 390 M (expense: 1,424).
• Operating cash flow for the fourth quarter increased to SEK 914 M (602). Free cash flow increased in the fourth quarter to SEK 608 M (279). Operating cash flow for the full-year 2009 rose to SEK 3,215 M (1,594).
• SEK M 2009 2008 2009 2008 Net sales 6,756 7,343 27,059 31,263 Operating profit 197 -800 773 374 Profit for the period 92 -842 419 -258 Earnings per share, SEK 1) 0.30 -4.25 1.70 -1.35 Operating profit, excl. items affecting comparability ⁴²⁸ -8 1,163 1,798 Earnings per share, SEK, excl. items affecting comparability 1) 0.90 -0.65 2.90 4.45 Oct - Dec Jan - Dec
• In 2009, net debt was reduced to SEK 8,369 M (12,706). The debt/equity ratio fell to 68 percent in the fourth quarter (124).

1) Share of net profit for the period attributable to equity holders of the Parent divided by the average number of shares. Following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33. This calculation method has been applied throughout this report in all key figures that include the number of shares. The calculation gives an average number of shares in 2009 of 240,699,594 while the number of shares end of period amounts to 271,071,783.

Market outlook for the

dividend of SEK 0,50 o

arket outlook for the first quarter of 2010. Ov erall, demand is expected to M first quarter of 2010 remain in line with the fourth quarter of 2009.

d President propose a cash dividend f SEK 0.50 per share (-). The Board proposes a Proposed dividend. The Board of Directors an

K ey ratios	Oct - Dec		Jan - Dec
S EK M	2009	2008	2009	2008
Net sales	6,756	7,343	27,059	31,263
Operating profit	197	-800	773	374
Profit before tax	128	-953	369	-166
Profit for the period	92	-842	419	-258
- attributable to equity holders of the parent	87	-845	409	-267
- attributable to minority interest	5	3	10	9
Earnings per share, SEK 1)	0.30	-4.25	1.70	-1.35
Average number of employees, of whom 2)			20,073	24,347
- women			4,981	6,294
- men			15,092	18,053

Operating key ratios S EK M	Oct - Dec		Jan - Dec
	2009	2008	2009	2008
Excluding items affecting comparability
Operating profit	428	-8	1,163	1,798
Earnings per share, SEK 1)	0.90	-0.65	2.90	4.45
EBITDA, %	10.4	3.9	8.4	9.1
Operating margin (ROS), %	6.3	neg	4.3	5.7

1) Share of net profit for the period attributable to equity holders of the Parent divided by the average number of shares. Following the ights issue, the average number of shares was adjusted according to guidelines in IAS 33. This calculation method has been applied throughout this report in all key figures that include the number of shares. The calculation gives an average number of shares in 2009 of 240,699,594 while the number of shares end of period amounts to 271,071,783. r

2) Number of employees at the end of December amounted to 19 606. In addition to this hired personnel amounted to 970 and tem porary employed 543.

The Group's key figures

October – December 2009

net sales for the fourth quarter of 2009 down 8 percent. Organic sales during the Net sales. The Trelleborg Group's amounted to SEK 6,756 M (7,343), quarter declined by 6 percent. Exchange-rate effects were negative 2 percent and effects from structural changes were 0 percent.

line hore oil/gas and Overall for the Group, demand in the fourth quarter of 2009 was in with the third quarter of 2009. In project-related segments offs infrastructure as well as the agricultural industry, demand was lower than in the third quarter of 2009, while demand in the light-vehicle industry was higher, still primarily driven by government incentive programs.

in Sou The Group continued to improve its market positions and is working to establish a better geographic balance through continued investments th America, Asia and Eastern Europe. During the fourth quarter, a new facility was opened in São José dos Campos in Brazil.

Change in net sales	Oct - Dec	Oct - Dec
%	2009	2008
Organic sales	-6	-15
Structural changes	0	+2
Currency impact	-2	+7
Total	-8	-6

Organic sales declined by 6 percent

Continued focus on emerging markets

Operating profit increased to 800) SEK 197 M (loss:

Earnings. Operating profit for the quarter amounted to SEK 197 M (loss: 00). Items affecting comparability were an expense of SEK 231 M cost e 8 (expense: 792), refer to page 5. Despite lower volumes, operating margins improved, compared with the year-earlier period, as a result of reduced levels. For several years, the Group has implemented action programs to establish a long-term more efficient structure. Since the second quarter of 2008, extensive measures have also been taken to adjust capacity and variable costs to the prevailing demand level. Many raw materials prices were lower than in the preceding year, which had a positive effect on earnings for the quarter. The prices of certain raw materials rose during th period and continued volatility is expected in the future.

f the earnings of Central costs during the quarter were somewhat higher than normal. Exchange-rate fluctuations arising in the translation o

h foreign Group companies had a negative impact of SEK 6 M compared wit the year-earlier period.

age interest rate of 3.2 percent (5.0). The Group posted a net financial expense of SEK 69 M (expense: 153), corresponding to an aver

s: 4.25). Profit before tax amounted to SEK 128 M (loss: 953). Net profit totaled SEK 92 M (loss: 842). Earnings per share totaled SEK 0.30 (los

Free cash flow increased to SEK 608 M (279)

02) primarily as a result of improved generation of earnings. Cash flow. Operating cash flow improved during the period to SEK 914 M (6

SEK M	Oct - Dec			Jan - Dec
	2009	2008	2009	2008
Operating cash flow	914	602	3,215	1,594
Utilization of restructuring provisions	-158	-173	-680	-447
Dividend paid to minority	-	-	-2	-3
Financial items	-52	-49	-532	-328
Paid tax	-96	-101	-258	-402
Free cash flow	608	279	1,743	414

Debt/equity ratio fell to 68 percent

Net debt. Net debt declined by SEK 464 M compared with the preceding quarter to SEK 8,369 M, primarily as a result of strong free cash flow.

The debt/equity ratio fell to 68 percent (124) primarily as a result of strong cash flow and the implementation of a rights issue in the amount of SEK 2,169 M during the second quarter 2009.

Change in net debt	Oct - Dec		Jan - Dec
SEK M	20 09	2008	2009	2008
N et debt, opening balance	-8,833	-11,706	-12,706	-10,093
Net cash flow for the period excl. rights issue	595	213	1,680	-977
Rights issue	-	-	2,070	-
Exchange rate differences	-131	-1,213	587	-1,636
Net debt, closing balance	-8,369	-12,706	-8,369	-12,706
Debt/equity ratio, %			68	124

New credit facilities of about SEK 3 billion

New credit facilities. During the quarter, Trelleborg signed three revolving credit facilities totaling EUR 291 M (or about SEK 3 billion), which improved the Group's credit facilities' maturity structure. These facilities are guaranteed in part by the Swedish Export Credits Guarantee Board. EUR 241 M of the credit facilities have a term of seven years and the remaining EUR 50 M has a term of five years.

Trelleborg has long-term base financing which lasts into 2012 through a syndicated loan. Long-term credit facilities and other long-term loans amounted to about SEK 17,700 M at year-end 2009. Short-term credit facilities and other short-term loans amounted to about SEK 4,500 M. The unutilized portion of the Group's total credit facilities amounted to approximately SEK 13,100 M, of which about SEK 11,200 M was related to long-term credit facilities.

January – December 2009

Net sales. The Trelleborg Group's net sales for full-year 2009 amounted to SEK 27,059 M (31,263), down 13 percent compared with 2008. Organic sales declined 21 percent. Exchange-rate effects were positive at 7 percent and effects from structural changes were positive at 1 percent.

Earnings. Operating profit for the full-year 2009 totaled SEK 773 M (374). Items affecting comparability amounted to an expense of SEK 390 M (expense: 1,424),refer to page 5. Profit before tax totaled SEK 369 M (loss: 166). Net profit amounted to SEK 419 M (loss: 258). The Group's tax expense was affected positively by the country mix plus capitalization of loss carryforwards in Germany and the UK totaling SEK 123 M. Earnings per share amounted to SEK 1.70 (loss: 1.35).

Operating cash flow for the full-year 2009 increased to SEK

Cash flow. Operating cash flow for the full-year 2009 rose to SEK 3,215 M (1,594). The lower earnings generated were effectively offset by the release of working capital and a lower investment level.

3,215 M (1,594) Capital employed and shareholders' equity. Capital employed amounted to SEK 19,755 M at the end of the period, compared with SEK 22,238 M at the end of the corresponding period in 2008. The decrease is mainly attributable to lower working capital tied-up. The return on capital employed during the year was 3.6 percent (1.8).

Shareholders' equity at the end of the period totaled SEK 12,267 M excluding minority shares. The equity/assets ratio was 42 percent (32).

	Group		Excl. items affecting comparability
		Jan - Dec		Jan - Dec
%	2009	2008	2009	2008
Return on capital employed	3.6	1.8	5.3	8.4
Return on shareholders' equity	3.6	neg	6.2	8.8

Items affecting comparability

comparability during the quarter: expense of SEK 231 M before tax and expense of SEK 165 M after tax

Items affecting Items affecting comparability for the calculation of key figures. Items affecting comparability during the fourth quarter of 2009 totaling an expense of SEK 231 M (expense: 792) before tax were excluded from the calculation of the Group's operating key figures. Items affecting comparability comprise restructuring costs for previously announced and ongoing programs in all four of the Group's business areas. These costs primarily pertain to the concentration of production units in Trelleborg Engineered Systems in Sweden, the UK and Estonia, France and Italy, and the consolidation of Trelleborg Sealing Solutions units in Italy, the US and Poland. The remaining costs for the programs communicated prior to the end of the fourth quarter of 2009 of about SEK 185 M are primarily attributable to Trelleborg Engineered Systems and will mainly be charged against the first six months of 2010.

Items affecting comparability
of operating profit 1)		Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Trelleborg Engineered Systems	-146	-45	-163	-79
Trelleborg Automotive	-26	-319	-59	-868
Trelleborg Sealing Solutions	-55	-7	-152	-32
Trelleborg Wheel Systems	-4	-5	-16	-15
Legal non-recurring items	-	-416	-	-430
Total items affecting comparability	-231	-792	-390	-1,424

1) Main part reported as other operating expenses

The carrying amount of the provisions recognized for restructuring costs and legal costs that are related to earlier communicated competition investigations amounted to SEK 525 M at the end of the fourth quarter. These provisions are expected to affect cash flow primarily in 2010.

The Group's operating key figures October – December 2009

Earnings. Operating profit, excluding items affecting comparability totaled SEK 428 M (loss: 8).

The operating margin was 6.3 percent (neg). Operating profit before depreciation (EBITDA) was SEK 706 M (289). The EBITDA-margin was 10.4 percent (3.9).

percent (3.9) Consolidated profit before tax amounted to SEK 358 M (loss: 161) and net profit amounted to SEK 256 M (loss: 127). Earnings per share totaled SEK 0.90 (loss: 0.65).

January – December 2009

Earnings. Operating profit, excluding items affecting comparability, amounted to SEK 1,163 M (1,798).

The operating margin was 4.3 percent (5.7). Operating profit before depreciation (EBITDA) totaled SEK 2,287 M (2,868). The EBITDA margin was 8.4 percent (9.1).

Consolidated profit before tax amounted to SEK 759 M (1,258) and net profit to SEK 703 M (889). Earnings per share totaled SEK 2.90 (4.45).

Operating profit was SEK 428 M (loss: 8)

EBITDA margin amounted to 10.4

Other

Adjusted financial targets

Adjusted financial targets. Trelleborg has adjusted its financial targets, which now are organic growth, EBITDA margin and return on shareholders' equity. The target for organic growth is 5 percent annually on average over one economic cycle. In addition, it remains Trelleborg's ambition to conduct supplementary acquisitions. The target for the EBITDA margin is still to exceed 12 percent. The target for return on shareholders' equity has been reduced to 12 percent after tax, primarily because the net debt to equity ratio is expected to be lower in the future.

Proposals to Annual General Meeting April 20, 2010

Dividend of SEK 0.50 (-) per share proposed

Proposed dividend. The Board and CEO propose that a cash dividend of SEK 0.50 (-) per share be paid to shareholders. The dividend policy states that the dividend in the long term should amount to 30-50 percent of net profit.

Nomination Committee's proposals for 2010 Annual General Meeting

Proposals for the Annual General Meeting. The Nomination Committee comprising representatives of the major owners, representing approximately 66 percent of the votes in Trelleborg AB, and the Chairman of the Board, has resolved to propose to the Annual General Meeting that it elect Nina Udnes Tronstad and Bo Risberg as new Board members of Trelleborg AB.

Staffan Bohman, elected to Trelleborg's Board of Directors in 2000, has declined re-election at the 2010 Annual General Meeting.

Nina Udnes Tronstad, born in 1959, is President of Aker Verdal AS, Norway, a subsidiary of Aker Solutions ASA. Nina Udnes Tronstad earlier held a number of management positions at Statoil in Norway, Sweden and Denmark. Eduaction: MSc in Chemistry, NTNU Norwegian University of Science & Technology.

Bo Risberg, born 1956, is President and CEO of Hilti Corporation, Liechtenstein. Bo Risberg formerly held management positions at AT Kearney and with ABB in Sweden and Canada. Education: MBA, IMD, Switzerland, and BSc Mechanical Engineering, Queen's University, Canada.

In addition, the re-election is proposed of the other Board members Heléne Bergquist, Hans Biörck, Claes Lindqvist, Sören Mellstig, Peter Nilsson and Anders Narvinger as Chairman.

The following serve as members of the Nomination Committee: Rolf Kjellman (Chairman of the Nomination Committee), Henry och Gerda Dunkers Stiftelse, Henrik Didner, Didner & Gerge Funds, Ramsay Brufer, Alecta, Lars Öhrstedt, AFA Insurance Companies, KG Lindvall, Swedbank Robur Funds, and the Chairman of the Board, Anders Narvinger.

Trelleborg's Annual General Meeting will be held at 5 p.m. on April 20, 2010 in Trelleborg.

Events after the period

Events after the period. No significant events occurred after the balancesheet date that have a material impact on the Group's financial position.

Risk management

Risks/risk management at Trelleborg. Trelleborg focuses continuously on identifying, evaluating and managing risks arising in various systems and processes. In 2008, an Enterprise Risk Management process (ERM) was established with the overall objective of ensuring that risks are managed systematically, that the right priorities are made and that risks are managed as efficiently as possible.

The principal risks and uncertainties currently faced by the Group relate to the economy's effect on demand, supply and price variations of raw material and components, structural measures, financial businessenvironment risks and changes in value of fixed assets.

For further information regarding the Group's risks, risk exposure and risk management, refer to the Trelleborg Annual Report and www.trelleborg.com

The Group's market outlook

Market outlook for the first quarter of 2010. Overall, demand is expected to remain in line with the fourth quarter of 2009.

Outlook from the interim report published on October 29, 2009: Market outlook for the fourth quarter of 2009. Overall, demand is expected to remain in line with the third quarter of 2009.

Trelleborg, February 16, 2010 The Board of Directors of Trelleborg AB (publ) _____________________________________________________________

This report was prepared in accordance with IAS 34 Interim Financial Reporting. A large number of amendments to existing standards, new interpretations and one new standard (IFRS 8) came into effect on January 1, 2009. Trelleborg considers the following standards and interpretations, which took effect on January 1, 2009, to be relevant to the presentation of its financial statements and the accounting principles:

• IFRS 8, Operating segments. This standard requires that segment information be presented on the basis of a management approach. Trelleborg's segment information is already presented on the same basis as is used for internal reporting purposes by the highest executive decision-maker (the President). Accordingly, there is no change in Trelleborg AB's segment division compared with the segments previously presented in accordance with IAS 14.
• IAS 1, Presentation of Financial Statement. The amendment to this standard involves a change to the presentation of financial statements. In accordance with IAS 1, Trelleborg has opted to present the Group's total earnings divided into two statements: a separate income statement and a statement of comprehensive income. Furthermore, the consolidated statement of changes in shareholders' equity only includes transactions with the Group's owners.
• The Group capitalizes borrowing costs that are directly attributable to the purchase, construction or production of a qualifying asset as a portion of the cost of the asset, in those instances the first date for capitalization is January 1, 2009 or later. In the past, the Group immediately expensed all borrowing costs. This amendment to the accounting principle is a result of the application of the transition rules in IAS 23, Borrowing costs (2007). Accordingly, comparative information was not restated. The amendment to the accounting principle has no significant impact on the Group's financial position or earnings per share. The Group has determined that it has no borrowing costs that will be capitalized in accordance with this standard.

In all other respects, Trelleborg continues to apply the same accounting principles and valuation methods as those described in the most recent annual report.

This report has not been subject to special examination by Trelleborg AB's auditors.

	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting compara bil ity
Net sales	2,699	3,244	11,169	12,228
Operating profit	204	192	744	1,083
Operating margin (ROS), %	7.6	5.6	6.6	8.6
Op erat ing cash flow	435	323	1,698	795
Op erat ing cash flow/operating prof , % it	213	168	228	73
Including items affecting compara bil ity
Operating profit	58	147	581	1,004
ROS, %	2.2	4.3	5.2	8.0

Trelleborg Engineered Systems

Additional key ratios on pages 15 - 17

Fourth quarter of 2009

Market trend. Demand in the industrial sector has stabilized and was on a par with the third quarter of 2009. Demand improved somewhat for industrial supply products compared with the third quarter of 2009, while demand for capital goods for industry declined. For project-related operations, such as offshore oil/gas and infrastructure, demand continued to decline.

Net sales. Net sales during the quarter declined 17 percent compared with the year-earlier period, primarily as a result of lower demand for projectrelated operations. Organic sales declined 15 percent, exchange-rate effects were negative at 2 percent and effects of structural changes were 0 percent.

The business area's focus on regions with higher growth is generating results, while the business area in general continued to strengthen its market positions through innovative product development.

Operating profit and cash flow. Operating profit in the quarter was somewhat better than in the year-earlier period. The decline in sales of project-related operations entailed a somewhat unfavorable product mix.

To improve competitiveness and production structure, the business area initiated a concentration of the number of production units in Sweden, the UK and Estonia. To optimize the production of printing blankets in Europe, a redistribution of resources is underway in Italy and France.

Cash flow improved during the quarter compared with the year-earlier period, primarily as a result of the release of working capital and a continued reduced level of investment.

Net sales. Organic sales declined 18 percent during the year, exchange-rate effects were positive at 7 percent and effects of structural changes were positive at 2 percent. Demand varied in the various market segments of the business area. In the industrial sector, demand for capital goods declined significantly during the year. In the project-oriented segment, sales were stable during the year, while orders received, particularly for offshore oil/gas, weakened during the latter part of the year. Full-year 2009

Operating profit. Operating profit during the year was lower than in 2008 primarily as a result of lower sales.

	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting comparability
Net sales	2,325	1,876	8,402	9,506
Operating profit	119	-349	1	-379
Operating margin (ROS), %	5.0	neg	neg	neg
Operating cash flow	222	110	445	59
Operating cash flow/operating profit, %	187	neg	44,500	neg
Including items affecting comparability
Operating profit	93	-668	-58	-1,247
ROS, %	3.8	neg	neg	neg

Trelleborg Automotive

Additional key ratios on pages 15 - 17

Fourth quarter of 2009

Market trend. During the quarter, global car production increased by about 14 percent compared with the third quarter of 2009. Car production in North America was higher than in the third quarter of 2009, while it was slightly lower in Europe. Government incentive programs had a positive impact on production. Car production in Asia rose compared with the third quarter of 2009, a trend driven by strong expansion in China and India.

Net sales. Net sales during the quarter increased by 24 percent compared with the year-earlier period. Organic sales increased by 25 percent, exchange-rate effects were negative 1 percent and effects of structural changes were 0 percent.

Orders received during the quarter were favorable and the business area continued to capture market share through multi-year orders for global platforms as a result of structured and market-oriented product developments.

Operating profit and cash flow. Operating profit improved considerably on the year-earlier period, primarily as a result of better volumes, structural actions and other capacity and cost adaptations implemented over the past several years and currently underway. Significant costs for these capacity adaptations were charged to the fourth quarter of 2008.

The programs announced within the business area are in their final phase. The relocation of production in the Fluid Solutions business unit from France to Turkey has essentially been completed and is currently generating a favorable contribution to earnings.

Improved earnings combined with a continued low level of investment and efficient management of working capital continued to contribute to a strong cash flow.

Net sales. During the year, organic sales declined 18 percent, exchangerate effects were positive at 6 percent and effects of structural changes were 0 percent. In early 2009, a significant decline in sales was noted that was directly related to a global decline in demand, which was magnified by inventory reductions among several manufacturers in the automotive industry. Beginning in the second quarter, government incentive programs were initiated in a number of countries, which had a favorable effect on the sales trend for the remainder of the year. Full year 2009

Operating profit. Operating profit improved considerably compared with 2008, primarily as a result of positive effects from implemented structural actions and other capacity and cost adaptations.

	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting comparability
Net sales	1,164	1,361	4,673	6,034
Operating profit	123	138	280	890
Operating margin (ROS), %	10.6	10.2	6.0	14.8
Operating cash flow	258	275	783	922
Operating cash flow/operating profit, %	210	199	280	104
Including items affecting comparability
Operating profit	68	131	128	858
ROS, %	5.8	9.7	2.8	14.2

Trelleborg Sealing Solutions

Additional key ratios on pages 15 - 17

Fourth quarter 2009 Market trend. In the industrial sector in general, demand stabilized and was in line with the third quarter of 2009. In the automotive industry, demand was better than in the third quarter of 2009, primarily driven by government incentive programs. Demand in the aerospace industry weakened compared with the third quarter of 2009.

Net sales. Net sales during the fourth quarter of 2009 declined 14 percent compared with the year-earlier period. Organic sales fell by 11 percent, exchange-rate effects were negative 2 percent and effects of structural changes negative 1 percent.

The business area strengthened its market positions, primarily as a result of innovative and customer-oriented product development and a continued focus on attractive segments.

Operating profit and cash flow. Operating profit in the quarter was somewhat lower compared with the year-earlier period. The result has been positively affected from continued general capacity adaptations to the prevailing market conditions. Consolidation of units in Italy and the US have continued, as has a concentration of operations in Poland.

Despite a lower operating profit compared with the preceding year, cash flow remained strong, primarily due to reduction in inventories.

Other. During the quarter, the business area further strengthened its presence in Brazil and opened a new plant in São José dos Campos. This facility manufactures advanced sealing solutions for the aerospace industry and light passenger vehicles, and for industrial applications.

Net sales. Organic sales for the full-year in the business area declined 29 percent, exchange-rate effects were 7 percent and effects of structural changes negative 1 percent. The business area was adversely affected by lower demand for industrial capital goods, primarily in Europe. Lower demand in the automotive industry had an unfavorable effect during the first six months of the year. Aerospace sales declined during the year, although less relative to other sub-segments. Full year 2009

Operating profit. Operating profit in 2009 was lower than in 2008, primarily as a result of lower sales.

	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting comparability
Net sales	629	903	2,991	3,708
Operating profit	46	60	283	363
Operating margin (ROS), %	7.4	6.7	9.5	9.8
Operating cash flow	71	6	520	129
Operating cash flow/operating profit, %	154	10	184	36
Including items affecting comparability
Operating profit	42	55	267	348
ROS, %	6.9	6.1	8.9	9.4

Trelleborg Wheel Systems

Additional key ratios on pages 15 - 17

Fourth quarter 2009 Market trend. In the agricultural sector, demand continued to decline compared with the third quarter of 2009 following a significant decline of newbuilding of vehicles for the agricultural industry. Global demand for manufactures of material-handling equipment remained at an exceptional low level, while aftermarket demand has stabilized.

Net sales. In the fourth quarter, net sales fell by 30 percent compared with the year-earlier period. Organic sales declined by 30 percent, exchange-rate effects were 0 percent and structural changes 0 percent.

Sales of agricultural tires were significantly lower than in the year-earlier period, with some variation in the different sub-segments, where the trend for large dimensions was better in relative terms. Sales of industrial tires were continuously significantly lower than in the year-earlier period.

The business area continues to actively work on broadening its product portfolio in selected sub-segments to create attractive offer for selected customer segments.

Operating profit and cash flow. Despite a significantly lower volume the business area has successfully managed to raise the operating margin in the quarter compared with previous year. Contributing factors have been a positive product- and channel mix, clear focus on key customers and a more flexible cost structure.

Cash flow improved during the quarter compared with the year-earlier period, primarily due to the release of working capital.

Net sales. Organic sales declined 26 percent, exchange-rate effects were 7 percent and structural changes 0 percent. Net sales is lower as a result of a significant decrease in demand for industrial tires and lower agriculturaltire sales. Demand for agricultural tires showed some variation in the various sub-segments, where the trend for large dimensions was better in relative terms, but demand for this product group also fell toward year-end. Full year 2009

Operating profit. Operating profit in 2009 was lower than in 2008, primarily as a result of lower sales. Despite the lower volume the business area has kept the operating margin on the same level as 2008.

Financial accounts

Income Statements

Group		Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Net sales	6,756	7,343	27,059	31,263
Cost of goods sold	-5,080	-5,696	-20,677	-23,603
Gross profit	1,676	1,647	6,382	7,660
Selling expenses	-591	-685	-2,349	-2,437
Administrative expenses	-638	-768	-2,503	-2,982
Research and development costs	-153	-154	-619	-603
Other operating income/expense	-100	-844	-149	-1,282
Profit from part. in assoc. companies	3	4	11	18
Operating profit	197	-800	773	374
Financial income and expenses	-69	-153	-404	-540
Profit before tax	128	-953	369	-166
Tax	-36	111	50	-92
Profit for the period	92	-842	419	-258
Profit attributable to:
Equity holders of the parent	87	-845	409	-267
Minority interest	5	3	10	9

Earnings per share		Oct - Dec		Jan - Dec
SEK	2009	2008	2009	2008
Earnings per share	0.30	-4.25	1.70	-1.35
Number of shares
End of period	271,071,783	90,357,261	271,071,783	90,357,261

Average number 1) 271,071,783 198,178,530 240,699,594 198,178,530 1) Following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33. This calculation method has been applied throughout this report in all key figures that include the number of shares. The calculation gives an average number of shares in 2009 of 240,699,594 while the number of shares end of period amounts to 271,071,783.

Statements of comprehensive income

	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Profit for the period	92	-842	419	-258
Other comprehensive income
Cash flow hedges	33	-165	86	-147
Hedging of net investment	-128	-921	446	-1,197
Translation difference	371	1,645	-762	2,055
Income tax relating to components of other
comprehensive income	-9	286	-160	363
Other comprehensive income, net of tax	267	845	-390	1,074
Total comprehensive income	359	3	29	816
Profit attributable to:
Equity holders of the parent	351	-12	18	808
Minority interest	8	15	11	8

Balance Sheets
Group	Dec 31	Dec 31
SEK M	2009	2008
Property, plant and equipment	6,603	7,137
Intangible assets	11,282	11,833
Financial assets	1,620	1,586
Total non-current assets	19,505	20,556
Inventories	3,425	4,775
Current operating receivables	5,940	7,505
Current interest-bearing receivables	78	178
Cash and cash equivalents	591	749
Total current assets	10,034	13,207
Total assets	29,539	33,763
Shareholders' equity, excluding minority share	12,267	10,153
Minority share	94	85
Total equity	12,361	10,238
Non-current interest-bearing liabilities	6,516	10,834
Other non-current liabilities	1,559	1,977
Total non-current liabilities	8,075	12,811
Interest-bearing current liabilities	2,529	2,805
Other current liabilities	6,574	7,909
Total current liabilities	9,103	10,714
Total equity and liabilities	29,539	33,763

Specification of changes in equity	Dec 31	Dec 31
SEK M	2009	2008
Attributable to equity holders of the parent
Opening balance, January 1	10,153	9,932
Total comprehensive income	18	808
Dividend	-	-587
Reduction of share capital 1)	-2,078	-
Bonus issue 1)	2,078	-
Rights issue	2,169	-
Transaction costs 2)	-73	-
Closing balance	12,267	10,153
Attributable to minority interest
Opening balance, January 1	85	120
Total comprehensive income	11	8
Dividend	-2	-3
Acquisitions	-	-40
Closing balance	94	85
Sum total equity, closing balance	12,361	10,238

1) In accordance with the proposal by the Board of Directors, with the purpose to render possible and facilitate the rights issue, the Annual General Meeting on April 23, 2009 resolved to reduce the share capital by SEK 2,078,217,003, without redemption of shares, changing the shares' quota value from SEK 25 to SEK 2. The Annual General Meeting also resolved on a bonus issue of SEK 2,078,217,003, as a measure to ensure that neither the restricted equity, nor the share capital, will be reduced.

2) Includes tax effect of 25,8 SEK M (26,3%), which is not affecting cash flow during this period.

Cash flow statements

Group		Oct - Dec	Jan - Dec
SEK M	2009	2008	2009	2008
Operating activities
Operating profit	197	-800	773	374
Adjustments for items not included in cash flow:
Depreciation, property, plant and equipment	239	239	957	897
Depreciation, intangible assets	41	47	167	157
Impairment losses, property, plant and equipment	12	231	41	392
Impairment losses, intangible assets	2	31	5	32
Provision for restructuring costs	215	541	344	1,016
Undistributed result from part. in assoc. companies	-3	-5	13	-15
	703	284	2,300	2,853
Interest received and other financial items	5	57	15	185
Interest paid and other financial items	-57	-104	-547	-513
Taxes paid	-96	-101	-258	-402
Cash flow from operating activities before changes in
working capital	555	136	1,510	2,123
Cash flow from changes in working capital:
Change in inventories	103	226	1,225	-134
Change in operating receivables	382	1,316	1,239	1,069
Change in operating liabilities	-81	-705	-759	-748
Utilization of restructuring provisions	-158	-173	-680	-447
Cash flow from operating activities	801	800	2,535	1,863
Investing activities
Acquisitions	-13	-66	-63	-802
Disposals	-	-	-	-2
Capital expenditure, property, plant and equipment	-187	-460	-754	-1,367
Capital expenditure in intangible assets	-21	-79	-72	-159
Sale of non-current assets	15	20	36	80
Cash flow from investing activities	-206	-585	-853	-2,250
Financing activities
Rights issue	-	-	2,070	-
Change in interest-bearing investments	-133	-296	685	-332
Change in interest-bearing liabilities	-583	272	-4,591	1,488
Dividend paid to shareholders	-	-	-	-587
Dividend paid to minority	-	-	-2	-3
Cash flow from financing activities	-716	-24	-1,838	566
Cash flow for the period	-121	191	-156	179
Cash and cash equivalents:
At beginning of the period	691	521	749	530
Exchange rate differences	21	37	-2	40
Cash and cash equivalents at end of period	591	749	591	749

TRELLEBORG AB YEAR-END REPORT JANUARY – DECEMBER 2009

Group review
		Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting comparability
Net sales	6,756	7,343	27,059	31,263
EBITDA	706	289	2,287	2,868
Operating profit	428	-8	1,163	1,798
Profit for the period	256	-127	703	889

Net sales	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Trelleborg Engineered Systems	2,699	3,244	11,169	12,228
Trelleborg Automotive	2,325	1,876	8,402	9,506
Trelleborg Sealing Solutions	1,164	1,361	4,673	6,034
Trelleborg Wheel Systems	629	903	2,991	3,708
Eliminations	-61	-41	-176	-213
Total	6,756	7,343	27,059	31,263

EBITDA 1)		Oct - Dec	Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	294	291	1,109	1,417
Trelleborg Automotive	228	-231	433	63
Trelleborg Sealing Solutions	174	190	497	1,085
Trelleborg Wheel Systems	72	84	383	453
Other companies	-1	-1	-6	-8
Group items	-61	-44	-129	-142
Total excluding items affecting comparability	706	289	2,287	2,868
Items affecting comparability
Trelleborg Engineered Systems	-133	-31	-141	-63
Trelleborg Automotive	-21	-82	-54	-481
Trelleborg Sealing Solutions	-57	-7	-133	-27
Trelleborg Wheel Systems	-4	-5	-16	-15
Legal non-recurring items	-	-416	-	-430
Total items affecting comparability	-215	-541	-344	-1,016
Total including items affecting comparability	491	-252	1,943	1,852

1) Operating profit before depreciations, amortizations and impairment losses.

EBITDA 1)		Oct - Dec	Jan - Dec
%	2009	2008	2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	10.9	8.7	9.9	11.4
Trelleborg Automotive	9.6	neg	5.1	0.7
Trelleborg Sealing Solutions	15.0	14.0	10.6	18.0
Trelleborg Wheel Systems	11.3	9.4	12.8	12.2
Total excluding items affecting comparability	10.4	3.9	8.4	9.1
Including items affecting comparability
Trelleborg Engineered Systems	6.0	7.8	8.6	10.9
Trelleborg Automotive	8.7	neg	4.4	neg
Trelleborg Sealing Solutions	10.0	13.5	7.8	17.5
Trelleborg Wheel Systems	10.8	8.8	12.3	11.8
Total including items affecting comparability	7.2	neg	7.1	5.9

1) Operating profit before depreciations, amortizations and impairment losses excluding participations in associated companies in relation to net sales.

TRELLEBORG AB YEAR-END REPORT JANUARY – DECEMBER 2009

Operating profit		Oct - Dec	Jan - Dec
SEK M	2009	2008	2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	204	192	744	1,083
Trelleborg Automotive	119	-349	1	-379
Trelleborg Sealing Solutions	123	138	280	890
Trelleborg Wheel Systems	46	60	283	363
Other companies	-1	-2	-8	-9
Group items	-63	-47	-137	-150
Total excluding items affecting comparability	428	-8	1,163	1,798
Items affecting comparability
Trelleborg Engineered Systems	-146	-45	-163	-79
Trelleborg Automotive	-26	-319	-59	-868
Trelleborg Sealing Solutions	-55	-7	-152	-32
Trelleborg Wheel Systems	-4	-5	-16	-15
Legal non-recurring items	-	-416	-	-430
Total items affecting comparability	-231	-792	-390	-1,424
Total including items affecting comparability	197	-800	773	374

Operating margin, (ROS) 1)		Oct - Dec	Jan - Dec
%	2009	2008	2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	7.6	5.6	6.6	8.6
Trelleborg Automotive	5.0	neg	neg	neg
Trelleborg Sealing Solutions	10.6	10.2	6.0	14.8
Trelleborg Wheel Systems	7.4	6.7	9.5	9.8
Total excluding items affecting comparability	6.3	neg	4.3	5.7
Including items affecting comparability
Trelleborg Engineered Systems	2.2	4.3	5.2	8.0
Trelleborg Automotive	3.8	neg	neg	neg
Trelleborg Sealing Solutions	5.8	9.7	2.8	14.2
Trelleborg Wheel Systems	6.9	6.1	8.9	9.4
Total including items affecting comparability	2.9	neg	2.8	1.1

1) Operating profit excluding participations in associated companies in relation to net sales.

Capital employed 1)	Dec 31	Dec 31
SEK M	2009	2008
Trelleborg Engineered Systems	6,711	7,812
Trelleborg Automotive	4,528	5,102
Trelleborg Sealing Solutions	7,156	8,046
Trelleborg Wheel Systems	1,835	2,145
Other companies	48	19
Group items	3	-3
Provision for restructing costs and legal costs	-526	-883
Total	19,755	22,238

1) Total assets less interest-bearing investments and non-interest bearing operating liabilities

(including pension liabilities) and excluding tax receivables and tax liabilities.

TRELLEBORG AB YEAR-END REPORT JANUARY – DECEMBER 2009

Return on capital employed, (ROCE) 1)	Jan - Dec
%	2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	10.0	15.5
Trelleborg Automotive	0.0	neg
Trelleborg Sealing Solutions	3.7	12.3
Trelleborg Wheel Systems	13.9	19.5
Total excluding items affecting comparability	5.3	8.4
Including items affecting comparability
Trelleborg Engineered Systems	7.9	14.5
Trelleborg Automotive	neg	neg
Trelleborg Sealing Solutions	1.7	11.9
Trelleborg Wheel Systems	13.3	18.9
Total including items affecting comparability	3.6	1.8

1) Operating profit in relation to average capital employed.

Cash flow report				Capital		Sold non		Change in	Total cash flow
		EBITDA 1)		expenditure		current assets		working capital		Jan - Dec
SEK M	2009	2008	2009	2008	2009	2008	2009	2008	2009	2008
Trelleborg Engineered Systems	1,180	1,447	-261	-557	20	17	759	-112	1,698	795
Trelleborg Automotive	465	113	-296	-463	6	6	270	403	445	59
Trelleborg Sealing Solutions	521	1,110	-91	-263	7	6	346	69	783	922
Trelleborg Wheel Systems	399	468	-176	-232	3	8	294	-115	520	129
Other companies	-7	-8	0	0	-	-	-1	3	-8	-5
Group items	-258	-277	-2	-11	-	43	37	-61	-223	-306
Operating cash flow	2,300	2,853	-826	-1,526	36	80	1,705	187	3,215	1,594
Utilization of restructuring provisions									-680	-447
Dividend paid to minority									-2	-3
Financial items									-532	-328
Paid tax									-258	-402
Free cash flow									1,743	414
Acquisitions									-63	-802
Disposals									-	-2
Dividend paid to shareholders									-	-587
Rights issue									2,070	-
Sum net cash flow									3,750	-977

1) Excluding undistributed result from associated companies and allocated group expenses

Acquisitions, January - December
SEK M	2009	2008
Purchase price	35	790
Acquisition expenses 1)	28	12
Net realizable value of acquired assets	29	480
Goodwill	34	322
Acquired assets and liabilities:
Property, plant and equipment	19	187
Intangible assets	6	128
Deferred tax	-	-39
Associated companies	2	-
Operating assets	-	261
Minority share	-	38
Operating liabilities	2	-95
Total	29	480
Profit/Loss for the period	-	4
Profit/Loss for the period in acquired entities January - December	-	6

1) Acquisitions costs relating to previous years acquisitions.

Parent company

Income Statements
Parent company	Oct - Dec		Jan - Dec
SEK M	2009	2008	2009	2008
Administrative expenses	-170	-90	-389	-339
Other operating income	98	43	289	263
Operating profit	-72	-47	-100	-76
Financial income and expenses	-388	-574	-516	-1,452
Profit before tax	-460	-621	-616	-1,528
Tax	40	71	144	328
Profit for the period	-420	-550	-472	-1,200

Balance Sheets

Parent company	Dec 31	Dec 31
SEK M	2009	2008
Property, plant and equipment	29	30
Intangible assets	9	12
Financial assets	34,244	33,084
Total non-current assets	34,282	33,126
Current operating receivables	52	92
Current interest-bearing receivables	1,665	1,956
Cash and cash equivalents	-	-
Total current assets	1,717	2,048
Total assets	35,999	35,174
Shareholders' equity	11,005	8,645
Total equity	11,005	8,645
Non-current interest-bearing liabilities	51	52
Other non-current liabilities	6	6
Total non-current liabilities	57	58
Interest-bearing current liabilities	24,845	26,399
Other current liabilities	92	72
Total current liabilities	24,937	26,471
Total equity and liabilities	35,999	35,174

Invitation to a presentation and telephone conference on February 16 at 9.30 a.m.

A presentation and telephone conference will be held on February 16 at 9:30 a.m. The presentation will be held at Operaterrassen in Stockholm. To participate in the telephone conference, call +46 (0)8-5051 3794 or +44 20 7806 1968 and state the code 8073146 or the password "Trelleborg". The conference will also be broadcast in real time on the Internet. Visit our website at www.trelleborg.com/en/Investors/Presentations for Internet link and presentation materials.

Calendar

Interim report January-March April 20 Annual General Meeting in Trelleborg April 20, 5:00 p.m. Interim report April-June July 21 Interim report July-October October 28

For further information, please contact: Investors/analysts

Conny Torstensson, IR Manager Tel: +46 (0)410 – 670 70 Mobil: +46 (0)734 – 08 70 70. E-mail: conny.torstensson@trelleborg.com

Media

Mikael Sjöblom, Media Relations Tel: +46 (0)410 – 670 70 Mobile: +46 (0)733 – 74 70 15. E-mail: mikael.sjoblom@trelleborg.com

Annual Reports, the stakeholder magazine T-TIME and other information on the Trelleborg Group can be ordered from: Trelleborg AB, Corporate Communications, by telephone on +46 (0)410-670 09, by e-mail at info@trelleborg.com or can be downloaded from the Group's website: www.trelleborg.com

Trelleborg AB (publ) Corp. Reg. no. 556006-3421 Box 153, SE- 231 22 Trelleborg, Sweden Tel: +46 (0)410-670 00, Fax: +46 (0)410-427 63 info@trelleborg.com www.trelleborg.com

This report contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors.

This is information of the type that Trelleborg AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on Tuesday, February 16, 2010 at 7:45 a.m.