Trelleborg — Interim / Quarterly Report 2013

Jul 23, 2013

Interim report April-June 2013

Continuing operations Continued improvements

Net sales for the second quarter of 2013 totaled SEK 5,628 M (5,612). Organic sales increased by 2 percent.

• Operating profit for the quarter, excluding items affecting comparability and the participation in TrelleborgVibracoustic, rose by 3 percent to SEK 723 M (702), equivalent to an operating margin of 12.8 percent (12.5), which is the highest to date for the Group.
• Items affecting comparability amounted to negative SEK 204 M (pos: 171), of which restructuring costs amounted to an expense of SEK 49 M (expense: 32). Refer to page 3 for more information.
• Operating cash flow for the quarter amounted to SEK 531 M (590).
• Operating profit for the quarter for the associated company TrelleborgVibracoustic, excluding items affecting comparability, amounted to EUR 31 M (pro forma EUR 27 M), corresponding to an operating margin of 6.9 percent (pro forma 6.5).
• Trelleborg's participation in TrelleborgVibracoustic amounted to SEK 97 M before tax for the quarter (-). This participation was charged with SEK 11 M in expenses affecting comparability (-).

Continuing operations excl items affecting
comparability, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	5 628	5 612	11 022	11 335	20 949	21 262
Operating profit excl participation in
TrelleborgVibracoustic	723	702	1 362	1 368	2 336	2 342
Operating margin, %	12,8	12,5	12,3	12,1	11,1	11,0
Operating profit incl participation in
TrelleborgVibracoustic	820	702	1 569	1 368	2 652	2 451
Operating margin, %	14,6	12,5	14,2	12,1	12,7	11,5
Operating cash flow	531	590	532	522	2 258	2 248
Earnings per share, SEK	2,10	1,95	4,00	3,60	6,70	6,30

Group in total

• Consolidated net sales amounted to SEK 5,628 M (7,533) for the quarter.
• Operating profit declined for the quarter to SEK 616 M (1,115), mainly due to nonrecurring costs of SEK 155 M being charged to the second quarter, and in the preceding year by nonrecurring revenues of SEK 337 M.
• The second quarter of 2012 included now discontinued operations in Group's accounting.
• Earnings per share for the quarter were SEK 1.40 (3.35).

Key ratios Group, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	5 628	7 533	11 022	15 306	20 953	25 237
Operating profit	616	1 115	1 328	1 859	2 284	2 815
Profit before tax	584	1 056	1 254	1 745	2 135	2 626
Net profit	385	901	876	1 402	1 531	2 057
Earnings per share, SEK	1,40	3,35	3,20	5,15	5,60	7,55

"Continued improvements"

"Trelleborg has once again reported a strong quarter. The operating profit and operating margin for the quarter was the highest to date for the Group. There was a positive trend in organic sales, with growth of 2 percent compared with the preceding year, driven by a slightly positive trend in Europe, particularly in general industry, and continued good growth in Asia.

We are continuing to strengthen the Group's positions within attractive and profitable market segments, primarily through organic initiatives. During the quarter, a small acquisition was made in offshore oil/gas, which has already made a positive contribution and further strengthened our position within this interesting segment. At the same time, work is progressing within our excellence and restructuring programs that continue to have a positive impact on earnings. We are pleased with the continued improvements, but remain far from satisfied. Our ambition is to continuously raise the bar and improve performance.

The European Commission's judgment for participation in a cartel relating to marine hoses was affirmed by the General Court of the European Union during the quarter. The case has been in progress since 2007 and although we do not share the Court's view of the prevailing legal status, the judgment means that we have come to the end of the processing of an issue that has been under way for many years and we can now look forward instead.

Market outlooks remain uncertain. However, our overall assessment is that demand is deemed to be on a par with the second quarter of 2013. As before, we are following economic developments closely and have a continued high level of preparedness to address fluctuating market conditions."

Peter Nilsson, President and CEO

Market outlook for the third quarter of 2013

Demand is expected to be on a par with the second quarter of 2013, adjusted for seasonal variations.

Market outlook from the Interim Report published on April 24, 2013, relating to the second quarter of 2013 Demand for the second quarter of 2013 is expected to be on a par with the first quarter of 2013, adjusted for seasonal variations.

Continuing operations second quarter 2013

Net sales

SEK M, organic growth, %	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	5 628	5 612	11 022	11 335	20 949	21 262
Change total, %	0	1	-3	5	-	1
Organic, %	2	-2	-2	2	-	1
Structural, %	4	1	4	1	-	0
Exchange rate, %	-6	2	-5	2	-	0

Net sales for the second quarter of 2013 were in line with the year-earlier period and amounted to SEK 5,628 M (5,612).

In project-related operations, sales were somewhat higher year-on-year, while other operations were in line with, or slightly lower than in the second quarter of 2012.

The organic sales trend in Europe was mildly positive. The trend in Northern Europe was stable, while Southern and Eastern Europe experienced a certain amount of recovery. Organic sales in North America declined by 10 percent, mainly due to the impact of project-related business. Sales in Asia rose by 12 percent, which was attributable to strong development in several geographic markets.

Earnings

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Operating profit excl. items affecting comparability
and participation in TrelleborgVibracoustic	723	702	1 362	1 368	2 336	2 342
Operating margin, %	12,8	12,5	12,3	12,1	11,1	11,0
Items affecting comparability	-204	171	-241	152	-382	11
Profit share in TrelleborgVibracoustic 1)	97	-	207	-	316	109
Operating profit	616	873	1 328	1 520	2 270	2 462
Operating margin, %	10,9	15,6	12,0	13,4	10,8	11,6

1) TrelleborgVibracoustic is consolidated in Trelleborg according to equity method as from July 2012.

Operating profit excluding items affecting comparability and participations in TrelleborgVibracoustic amounted to SEK 723 M (702), a year-on-year increase of 3 percent. Continued improved cost efficiency yielded a positive impact on earnings. Operating margin was strengthened at 12.8 percent (12.5), which is the best margin on record for the Group.

Exchange-rate effects upon the translation of foreign subsidiaries had a negative impact on earnings of SEK 44 M compared with the year-earlier period.

The quarter was charged with items affecting comparability amounting to an expense of SEK 49 M (expense: 32) for restructuring programs, in line with the announcements made earlier. In addition, SEK 155 M was charged to the second quarter, which related to the European Commission's judgment on the Trelleborg Group's participation in a cartel on marine oil hoses; refer to page 7. In the yearearlier period, items affecting comparability included revenues of SEK 203 M from the sale of a property.

Trelleborg's participation in TrelleborgVibracoustic is included in operating profit in accordance with the equity method in the amount of SEK 97 M before tax1) (-).This participation was charged with costs of SEK 11 M (-) for items affecting comparability in the joint venture.

Operating profit, including TrelleborgVibracoustic and items affecting comparability, amounted to SEK 616 M (873) for the quarter.

1) Trelleborg's participation in TrelleborgVibracoustic before financial expenses and items affecting comparability totaled SEK 132 M. For the comparable portion of Trelleborg that is currently included in TrelleborgVibracoustic, operating profit was SEK 108 M for the year-earlier period.

Operating cash flow

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Operating profit before depreciation	889	882	1 696	1 719	2 980	3 003
Capital expenditure	-208	-241	-357	-406	-861	-910
Sold non current assets	3	2	4	6	57	59
Change in working capital	-153	-53	-811	-797	82	96
Operating cash flow	531	590	532	522	2 258	2 248

Operating cash flow for the period amounted to SEK 531 M (590). The operating cash flow was in line with seasonal variations but was affected by higher tied-up working capital and a lower level of investment during the quarter, which was due to delays between quarters. The Trelleborg Coated

Systems, Trelleborg Industrial Solutions and Trelleborg Wheel Systems business areas reported improved cash flow compared with the year-earlier period.

Return on capital employed

%	R12 2013	R12 2012	12M 2012
Return on capital employed excl items affecting comparability	13,9	13,8	13,9
Return on capital employed incl items affecting comparability	11,7	14,2	14,0

Capital employed was in line with 2012 and totaled SEK 17,362 M (17,186), excluding participations in TrelleborgVibracoustic. The return on capital employed

excluding items affecting comparability was maintained at the same level as in the year-earlier period at 13.9 percent (13.8).

The Group in total second quarter 2013

Key figures

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	5 628	7 533	11 022	15 306	20 953	25 237
Operating profit	616	1 115	1 328	1 859	2 284	2 815
Profit before tax	584	1 056	1 254	1 745	2 135	2 626
Net profit	385	901	876	1 402	1 531	2 057
Earnings per share
Continuing operations, excl items affecting comparability, SEK	2,10	1,95	4,00	3,60	6,70	6,30
Continuing operations, incl items affecting
comparability, SEK	1,40	2,60	3,20	4,20	5,55	6,55
Total Group, SEK	1,40	3,35	3,20	5,15	5,60	7,55

Consolidated net sales for the second quarter of 2013 amounted to SEK 5,628 M (7,533). The second quarter of 2012 included net sales of SEK 1,921 M from discontinued operations, predominantly from Trelleborg Automotive AVS, which is now part of TrelleborgVibracoustic.

Operating profit for the second quarter of 2013 was SEK 616 M (1,115). During the second quarter of 2013, the operating profit was affected by nonrecurring costs of SEK 155 M related to the European Commission's judgment on the Trelleborg Group's participation in a cartel on marine oil hoses. During the second quarter of 2012, operating profit was charged with nonrecurring revenues of SEK 337 M, SEK 203 M from a property sale and SEK 134 M from the divestment of the protective products operation, reported as

discontinued operations. Also included in operating profit from discontinued operations during the second quarter 2012 are ongoing earnings from Trelleborg Automotive AVS of SEK 108 M.

Net financial income and expenses amounted to a net expense of SEK 32 M (expense: 59) corresponding to an average rate of interest of 2.1 percent (3.4). Profit before tax amounted to SEK 584 M (1,056) while net profit totaled SEK 385 M (901). The tax rate was 34 percent (15). The tax rate for the second quarter of 2013 was impacted by nonrecurring costs related to the General Court of the European Union's judgment, while the low tax rate in the year-earlier period was impacted by tax-free nonrecurring revenues. Earnings per share totaled SEK 1.40 (3.35).

Net cash flow

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Operating cash flow	531	590	532	522	2 258	2 248
Utilization of restructuring provisions/sale of
property	-44	173	-71	137	-127	81
Dividend - non-controlling interest	-	-5	0	-5	0	-5
Financial items	-15	-7	-117	-98	-169	-150
Paid tax	-140	-120	-271	-214	-517	-460
Free cash flow	332	631	73	342	1 445	1 714
Acquisitions	-42	2	-173	2	-919	-744
Discontinued operations	-	101	-	48	400	448
Dividend - equity holders of the parent	-813	-678	-813	-678	-813	-678
Sum net cash flow	-523	56	-913	-286	113	740

Free cash flow was lower than in the year-earlier period. The comparison was impacted by liquidity from the sale of a property and effects from discontinued operations being

included in 2012. The dividend to the Parent Company's shareholders was SEK 813 M (678), up 20 percent.

Net debt

Change in net debt, SEK M	6M 2013	6M 2012	12M 2012
Net debt, opening balance	-5 360	-6 425	-6 425
Net cash flow for the period	-913	-286	740
Exchange rate differences	-167	20	325
Net debt, closing balance	-6 440	-6 691	-5 360
Debt/equity ratio, %	46	48	38
Net Debt/EBITDA continuing operations excl items affecting comparability	1,9	2,2	1,7
Net Debt/EBITDA continuing operations incl items affecting comparability	2,2	2,2	1,7
Net Debt/EBITDA Total Group	2,2	1,7	1,4

Net debt increased by SEK 852 M during the quarter, amounting to a negative SEK 6,440 M. Net debt was impacted by positive free cash flow, implemented acquisitions, a dividend to shareholders and negative exchange-rate differences. A strong free cash flow over the past 12-month period and positive exchange-rate differences impacted net

debt, which declined by about SEK 250 M over the same period.

The debt/equity ratio was 46 percent (48). Net debt in relation to EBITDA for continuing operations, excluding items affecting comparability, was 1.9 (2.2). Net debt in relation to EBITDA for the Group in total was 2.2 (1.7).

Return on equity

%	R12 2013	12M 2012
Continuing operations, excl items affecting comparability	13,2	12,5
Continuing operations, incl items affecting comparability	10,9	13,0
Total Group	11,0	15,0

Shareholders' equity for the Group at the close of the period amounted to SEK 14,095 M (13,621), excluding non-controlling interests. Equity per share amounted to SEK 52.00 (50.25).

The equity/asset ratio was 50 percent (47). Consolidated return on shareholders' equity for the most recent 12-month period was 11.0 percent (full-year 2012: 15.0).

Continuing operations January – June 2013

The Trelleborg Group's net sales for continuing operations for the first six months of 2013 totaled SEK 11,022 M (11,335), down 3 percent compared with 2012. Organic sales decreased 2 percent (increase: 2). Structural changes represented a positive impact of 4 percent (1) while exchange rates had a negative impact of 5 percent (pos: 2).

Operating profit for the first six months of 2013 amounted to SEK 1,328 M (1,520). Items affecting comparability

amounted to an expense of SEK 241 M (income: 152). Profit before tax totaled SEK 1,254 M (1,442). Net profit was SEK 876 M (1,146). Earnings per share were SEK 3.20 (4.20).

Operating cash flow during the first six months of 2013 was SEK 532 M (522).

At the end of the period, capital employed excluding participation in TrelleborgVibracoustic totaled SEK 17,362 M, compared with SEK 17,186 M at the same date in 2012.

The Group in total January – June 2013

Consolidated net sales during the first six months of 2013 totaled SEK 11,022 M (15,306), down 28 percent compared with 2012.

Operating profit for the first six months of 2013 amounted to SEK 1,328 M (1,859).

The financial net expense was SEK 74 M (expense:

114), corresponding to an average interest rate of 2.5 percent (3.4).

Profit before tax totaled SEK 1,254 M (1,745). Net profit amounted to SEK 876 M (1,402). Earnings per share were SEK 3.20 (5.15).

Significant events during the quarter

Press releases

Acquisition of niche company in offshore oil & gas.

Trelleborg Offshore & Construction has signed an agreement for and finalized the acquisition of Ambler Technologies Ltd. The company develops and produces composite materials that create strictly specified buoyancy and insulation properties in applications used primarily in deep-sea environments. Annual net sales amount to approximately SEK 50 M. The acquisition strengthens Trelleborg's position in oil and gas exploration and extraction, particularly in relation to buoyancy modules for Remotely Operated Vehicles (ROVs).

Decision by the General Court of the European Union. In

2007, a subsidiary of the Trelleborg Group became subject of investigations regarding involvement in a marine hose cartel. In January 2009, the European Commission imposed a penalty of EUR 24.5 M on Trelleborg as a result of this matter. Although Trelleborg accepts the judgment in actual matter of fact, Trelleborg appealed the European Commission's decision to the General Court of the European Union on the grounds that the decision was partially deemed to diverge from Union law applicable at that time regarding interpretation of the limitation period. However, the General Court of the European Union affirmed the European Commission's judgment and penalty amount during the quarter.

The Trelleborg Group has made provisions for process and litigation costs as well as the penalty based on an analysis of the legal position that gave rise to appealing the European

Commission's decision. However, the judgment handed down by the General Court of the European Union entailed that previous provisions of about SEK 100 M were insufficient and the Trelleborg Group will therefore allocate an additional SEK 155 M, which will be recognized as a non-recurring cost in the quarter. The amounts have not yet affected the Group's operating cash flow.

The Trelleborg Group takes all violations of applicable law very seriously and an extensive action program has been in place for several years based on the Group's zero tolerance approach to corruption and breaches of competition law.

Other

Product innovations. A number of innovations from the Group were launched during the Offshore Technology Conference in Houston in the U.S.; a new tandem offloading system for liquid natural gas (LNG), a new method to handle the assembly of seals in-situ on FPSO platforms and a new generation buoyancy clamps for deep-sea environments.

Digital communications. The Group continues to focus on digital solutions as a way to increase service to existing customers and to reach new customers. For example, a new digital showroom was launched that displays the Group's products and solutions – from space to seabed.

Significant events after the close of the period

Press releases

No significant events were reported after the close of the period.

Other

Divestment of rubber compounding operation. After the close of the period, a rubber compounding operation was divested in the Netherlands. The unit generated sales of about SEK 100 M in 2012. The divestment is not expected to have a significant impact on the Group's sales and earnings.

Risk management

Trelleborg focuses continuously on identifying, evaluating and managing risks arising in the Group's companies, business areas, business units and processes. Trelleborg has an Enterprise Risk Management process (ERM process) that aims to provide a Group-wide overview of Trelleborg's risks, deliver a basis for risk management decisions and enable assessment of the risks and of how they are managed.

The principal risks and uncertainties currently faced by the Group relate to the economy's effect on demand, supply and price movements of raw materials and components, structural programs and financial business environment risks.

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

Board of Directors' assurance

This Six-month Report provides a fair overview of the operations, position and results of the Parent Company and the Group, and describes material risks and uncertainties faced by the Parent Company and the companies that are included in the Group.

	Trelleborg, July 23, 2013
Sören Melstig Chairman of the Board	Heléne Vibbleus Bergquist Board Member	Hans Biörck Board Member
Claes Lindqvist Board Member	Jan Carlson Board Member	Nina Udnes Tronstad Board Member
Bo Risberg Board Member	Mikael Nilsson Board Member	Peter Larsson Board Member
Karin Linsjö Board Member	Peter Nilsson Board Member and President/CEO	Birgitta Håkansson Deputy Board Member
		Board of Directors of Trelleborg AB (publ)

This report has been prepared in accordance with IAS 34 Interim Financial Reporting and the applicable rules of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act, Interim Reports. The accounting policies applied by the Group and Parent Company correspond to the accounting policies applied in the preparation of the most recent annual report, with the exception of that stated below.

New and amended standards applied from January 1, 2013

The Group applies the new and amended standards described below as of January 1, 2013.

IFRS 13 Fair Value Measurement aims to reduce complexity by providing a more precise definition of fair value and more uniform disclosure requirements. The Group's assessment is that the only effect of this new standard is the expanded supplementary disclosures.

IAS 1 Presentation of Financial Statements has been amended in relation to Other comprehensive income. The main change is the requirement of categorizing the items recognized in Other comprehensive income on the basis of whether or not such items will be reclassified to profit or loss in later periods. This has resulted in the addition of new headings under the statement of comprehensive income.

IAS 19 Employee Benefits has been amended. The amendment implies the discontinuation of the corridor approach, that all actuarial gains and losses are now to be recognized in Other comprehensive income as they arise and that costs for services rendered in previous periods will be recognized on an ongoing basis. According to the new standard, instead of interest expenses and expected return on plan assets, income/expense will be recognized net by applying a discounting rate equivalent to that used to discount the pension liability, to the Group's pension debt. Costs for the year's pension vesting and income/expenses is recognized in operating profit. The amended standard came into force on January 1, 2013 with retroactive application.

The transition effects on the balance sheet, shareholders' equity, income statement and Other comprehensive income for the 2012 comparative year are as follows:

Shareholders' equity at January 1, 2012 was negatively impacted by SEK 173 M net after tax as a result of the recognition of unrealized actuarial losses and taking into account special employer's contributions and an increase in deferred tax assets. Accordingly, this entailed an increase of SEK 248 M in pension provisions and an increase in deferred tax assets of SEK 75 M.

The impact on profit for the year for the 2012 fiscal year is estimated to be marginal and the comparative figures have not, therefore, been restated. Other comprehensive income for 2012 was impacted by a revaluation of SEK 16 M.

The total negative effect on shareholders' equity at December 31, 2012 amounted to SEK 157 M. Accordingly, the new policy resulted, at the end of 2012 in an increase of SEK 231 M in pension provisions and of SEK 74 M in deferred tax assets, compared with earlier policies.

This report has not been subject to special review by the company's auditors.

Trelleborg Coated Systems is a leading global supplier of unique customer solutions for polymer-coated fabrics deployed in several industrial applications.

Excluding items affecting comparability, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	477	464	940	933	1 745	1 738
Change total, %	3	-2	1	-1		-4
Organic, %	-6	-6	-6	-4		-6
Structural, %	14	-	11	-		1
Exchange rate, %	-5	4	-4	3		1
Operating profit	52	53	112	110	179	177
Operating margin, %	11,0	11,3	12,0	11,8	10,3	10,2

Additional key ratios on pages 19 - 21

Organic sales for the quarter declined by 6 percent year-onyear. Sales were influenced by the continued weak demand for printing blankets in Europe and by the weak Japanese yen (JPY). Sales of coated fabrics remained weak in Europe while the situation remained stable in North America. The effects of structural changes of 14 percent were attributable to the acquisition of the Brazilian manufacturer of printing blankets in the autumn of 2012.

Operating profit was on a par with the year-earlier period. Operating profit and the operating margin were positively impacted by the Brazilian acquisition, which was fully consolidated during the quarter. The quarter was also adversely impacted by the weak JPY and by lower sales.

Exchange-rate effects from the translation of foreign subsidiaries had a negative impact on operating profit of SEK 3 M compared with the corresponding period in 2012.

The business area's investment in the world's largest facility for solvent-free production of printing blankets has been commissioned and will gradually reach full capacity during the year.

Trelleborg Industrial Solutions is a market leader in such industrial application areas as hose systems, industrial antivibration solutions and selected industrial sealing systems.

Excluding items affecting comparability, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	1 140	1 162	2 234	2 364	4 372	4 502
Change total, %	-2	-5	-6	0		-2
Organic, %	2	-8	-2	-2		-2
Structural, %	0	2	-	1		1
Exchange rate, %	-4	1	-4	1		-1
Operating profit	110	76	206	165	369	328
Operating margin, %	9,6	6,6	9,2	7,0	8,4	7,3

Additional key ratios on pages 19 - 21

Organic sales for the quarter rose by 2 percent year-on-year. Sales in general industry, transportation and constructionrelated operations were level with the corresponding period in 2012. Most geographic markets reported positive organic growth.

Operating profit increased year-on-year due primarily to improved cost efficiency and a strong market position. Restructuring programs announced earlier had a positive effect on earnings. Exchange-rate effects from the translation of foreign subsidiaries had a negative impact of SEK 4 M on operating profit compared with the year-earlier period.

During the quarter, the business area and Saipem, a leading turnkey contractor in the oil and gas industry, presented a new LNG tandem offloading system. The system is expected to go to market in 2014 but the technology is already part of future project proposals.

Trelleborg Offshore & Construction is a leading global supplier of polymer-based critical solutions for deployment in highly demanding environments.

Excluding items affecting comparability, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	978	929	1 834	1 828	3 650	3 644
Change total, %	5	11	0	13		17
Organic, %	9	5	2	8		14
Structural, %	3	-	4	0		0
Exchange rate, %	-7	6	-6	5		3
Operating profit	81	67	128	114	230	216
Operating margin, %	8,2	7,1	7,0	6,2	6,3	5,9

Additional key ratios on pages 19 - 21

Organic sales for the quarter rose by 9 percent year-on-year. Market activity remained high, primarily in offshore oil/gas. Project deliveries increased during the quarter compared with the year-earlier period, particularly in offshore oil/gas, which was attributable in part to delays of deliveries from previous quarters.

Operating profit rose compared with the corresponding period in 2012, primarily as a result of increased sales. The two companies – active in marine systems and offshore oil/gas – which were acquired during the first half of the year, contributed positively to operating profit during the quarter. Exchange-rate effects from the translation of foreign subsidiaries had a negative impact of SEK 6 M on operating profit compared with the year-earlier period.

During the quarter, the business area signed an agreement for and finalized the acquisition of Ambler Technologies Ltd., which is active within offshore oil/gas and develops and manufactures composite materials in applications that are primarily deployed in deep-sea environments. Refer to page 7 for more information.

The business area secured delivery contracts for docking and berthing equipment as well as software for a berthing system for an LNG project in Yuedong, China. A delivery contract was also secured for a fender system for an LNG project in Queensland, Australia.

For the world's first subsea gas compression facility, off the coast of Norway, the business area has been awarded a contract to provide solutions to the heat insulation technology.

Trelleborg Sealing Solutions is a leading global supplier of polymer-based sealing solutions.

Excluding items affecting comparability, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	1 833	1 944	3 583	3 917	6 881	7 215
Change total, %	-6	2	-9	5		-1
Organic, %	-1	-1	-4	1		-2
Structural, %	0	0	-	2		1
Exchange rate, %	-5	3	-5	2		0
Operating profit	416	464	768	893	1 388	1 513
Operating margin, %	22,7	23,8	21,4	22,8	20,1	20,9

Additional key ratios on pages 19 - 21

Organic sales for the quarter declined by 1 percent year-onyear. Organic sales were mildly positive in Europe where the business area's most important market segment, general industry, experienced a stable trend despite the prevailing economy. Organic sales were slightly positive in Asia, while it declined in North America, partly due to customers' inventory adjustments.

Operating profit declined compared with the corresponding period in 2012, mainly due to exchange-rate effects and lower sales. This was partially offset by effective cost management. The operating margin was the secondhighest level to date for the business area. Exchange-rate effects from the translation of foreign subsidiaries had a

negative impact of SEK 23 M on operating profit compared with the year-earlier period.

The business area continues to focus on innovative application and solutions, which contribute to increase the performance of customers' business. During the quarter, the business area has for example launched a new method to handle the assembly of seals in-situ on a FPSO platform, reducing downtime and maintenance.

Trelleborg Wheel Systems is a leading global supplier of tires and complete wheels for agricultural and forestry machines, forklift trucks and other materials handling vehicles.

Excluding items affecting comparability, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	1 111	1 052	2 220	2 180	3 905	3 865
Change total, %	6	5	2	11		0
Organic, %	-1	4	-4	11		2
Structural, %	13	-	11	0		-1
Exchange rate, %	-6	1	-5	0		-1
Operating profit	137	133	281	289	441	449
Operating margin, %	12,4	12,6	12,7	13,2	11,3	11,6

Additional key ratios on pages 19 - 21

Organic sales for the quarter declined by 1 percent year-onyear. Sales of agricultural tires were level with the year-earlier period. Sales of tires fitted on materials handling vehicles were weak during the quarter, primarily in Europe.

Operating profit was on a par with the year-earlier period. Earnings were negatively impacted by inventory adjustments in the U.S. industrial tire operation acquired at the end of 2012, which has nonetheless strengthened cash flow. Exchange-rate effects from the translation of foreign subsidiaries had a negative impact of SEK 6 M on operating profit compared with the year-earlier period.

The integration of Trelleborg's service concept into the Dutch industrial tire operation acquired during the first quarter is proceeding according to plan.

The trend remains favorable in China and new growth initiatives aimed at the local market were initiated.

The business area has become the preferred supplier for industrial tires for a leading manufacturer of materials handling vehicles in Europe, the Middle East and Africa.

A renewed partnership was established with a leading manufacturer of agricultural machines, whereby the two companies undertake to cooperate in development and product innovation of agricultural tires.

TrelleborgVibracoustic is a global leader within antivibration solutions for light and heavy vehicles. The company was formed in July 2012 and is owned in equal shares by Trelleborg and Freudenberg.

		proforma 1)		proforma 1)	proforma 1)	proforma 1)
Excluding items affecting comparability, EUR M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales	445	411	869	830	1 672	1 632
Change total, %	8		5
Organic, %	7		4
Structural, %	1		0
Exchange rate, %	0		1
Operating profit	31	27	59	54	103	98
Operating, margin %	6,9	6,5	6,8	6,6	6,2	6,0
Operating cashflow	55		34
EBITDA	43	40	86	80	157	151
Capital employed, closing balance	483		483			450
Net debt, closing balance	146		146			160
Equity, closing balance	324		324			290

Please note that the joint venture reports in EUR.

1) The proforma figures are based on a combination of previous consolidation of entities within Trelleborg Automotive and Vibracoustic.

Organic sales for the quarter rose by 7 percent year-on-year, which was better than the underlying market. Sales were strong, particularly in China, North America and Brazil. In Europe, sales performance was better than the underlying market. A number of orders were received for new car platforms, thus creating a base for future deliveries.

Operating profit and the operating margin were higher year-on-year. Increased volumes and some minor synergy effects had a positive impact on earnings.

Operating cash flow was positive during the quarter, primarily as a result of effective working-capital management.

During the quarter, TrelleborgVibracoustic finalized the merger with the Turkish company HSS Otomotiv regarding

respective parties' air springs operations for commercial vehicles. The new company will primarily conduct operations in Turkey and is 50.1-percent owned by TrelleborgVibracoustic. During the quarter, TrelleborgVibracoustic initiated the restructuring of its Swedish operations for components to the commercial-vehicle sector.

TrelleborgVibracoustic is reported as an associated company in Trelleborg's financial accounts and is recognized according to the equity method.

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012 2)	R12 2013 3)	12M 2012 4)
Operating profit EUR M, see page 14	31	-	59	-	-	-
Operating profit excl items affecting comp.	263	-	501	-	878	377
Acquisition related costs	-13	-	-18	-	-55	-37
Amortization of intangible assets 1)	-9	-	-19	-	-63	-44
Restructuring items	-	-	-7	-	-39	-32
Operating profit	241	-	457	-	721	264
Financial income and expenses	-47	-	-43	-	-90	-47
Profit before tax	194	-	414	-	631	217
Trelleborg share	97	-	207	-	316	109
Tax	-67	-	-126	-	-190	-64
Trelleborg share	-34	-	-63	-	-95	-32
Net profit	126	-	288	-	441	153
Trelleborg share	63	-	144	-	221	77

1) Related to split of acquisition balance

2) TrelleborgVibracoustic was formed in July 2012

3) Relates to last two quarters 2012 and the two first quarters 2013

4) Relates to last two quarters 2012

Trelleborg's participation in TrelleborgVibracoustic is included in operating profit in accordance with the equity method in the amount of SEK 97 M before tax (-). This participation was charged with SEK 11 M, corresponding to half of the expenses affecting comparability in the joint venture.

For the comparable part of Trelleborg now included in TrelleborgVibracoustic, operating profit amounted to SEK 108 M in the year-earlier period, and can be compared with this year's participation before net financial expenses and items affecting comparability of SEK 132 M.

Unrealized exchange-rate differences had a negative impact on the quarter's financial income and expenses of about SEK 36 M. In the first quarter of 2013, the corresponding exchange-rate difference totaled a positive SEK 15 M.

Financial statements

Income Statements

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Continuing operations
Net sales	5 628	5 612	11 022	11 335	20 949	21 262
Cost of goods sold	-3 702	-3 720	-7 317	-7 589	-14 123	-14 395
Gross profit	1 926	1 892	3 705	3 746	6 826	6 867
Selling expenses	-538	-542	-1 056	-1 059	-2 025	-2 028
Administrative expenses	-599	-605	-1 179	-1 194	-2 321	-2 336
Research and development costs	-77	-79	-150	-155	-304	-309
Other operating income/expenses	10	35	41	29	157	145
Profit from TrelleborgVibracoustic	97	-	207	-	316	109
Profit from part in other assoc companies	1	1	1	1	3	3
Items affecting comparability	-204	171	-241	152	-382	11
Operating profit	616	873	1 328	1 520	2 270	2 462
Financial income and expenses	-32	-34	-74	-78	-150	-154
Profit before tax	584	839	1 254	1 442	2 120	2 308
Tax	-165	-130	-315	-296	-507	-488
Tax related to part in TrelleborgVibracoustic	-34	-	-63	-	-95	-32
Total tax	-199	-130	-378	-296	-602	-520
Net profit	385	709	876	1 146	1 518	1 788
Discontinued operations 1)
Net sales	-	1 921	-	3 971	4	3 975
Operating profit	-	242	-	339	14	353
Profit before tax	-	217	-	303	15	318
Net profit	-	192	-	256	13	269
Group
Net sales	5 628	7 533	11 022	15 306	20 953	25 237
Operating profit	616	1 115	1 328	1 859	2 284	2 815
Profit before tax	584	1 056	1 254	1 745	2 135	2 626
Total net profit	385	901	876	1 402	1 531	2 057
- equity holders of the parent	384	896	873	1 390	1 525	2 042
- non-controlling interest	1	5	3	12	6	15
Earnings per share, SEK	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Continuing operations	1,40	2,60	3,20	4,20	5,55	6,55
Discontinued operations 1)	0,00	0,75	0,00	0,95	0,05	1,00
Group, total	1,40	3,35	3,20	5,15	5,60	7,55
Number of shares
End of period	271 071 783	271 071 783	271 071 783		271 071 783 271 071 783 271 071 783
Average number	271 071 783	271 071 783	271 071 783		271 071 783 271 071 783 271 071 783
1) M ainly including operations divested to the joint venture TrelleborgVibracoustic in July 2012.

Statements of comprehensive income

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Total net profit	385	901	876	1 402	1 531	2 057
Other comprehensive income
Items that will not be reclassified to the income
Actuarial gains and losses	28	4	24	8	32	16
	28	4	24	8	32	16
Items that may be reclassified to the income
statement
Cash flow hedges	35	-23	40	-1	51	10
Hedging of net investment	-436	-44	-117	142	277	536
Translation difference 2)	649	89	87	-378	-507	-972
Income tax relating to components of other
comprehensive income 2)	94	25	24	-25	-93	-142
	342	47	34	-262	-272	-568
Other comprehensive income, net of tax	370	51	58	-254	-240	-552
Total comprehensive income	755	952	934	1 148	1 291	1 505

2) Whereof discontinued operations, translation difference SEK -59 M and income tax SEK 19 M included in the period Jul - Sep 2012.

Balance Sheets
Group	Jun 30	Jun 30	Dec 31
SEK M	2013	2012	2012
Property, plant and equipment	4 975	4 776	4 909
Intangible assets	9 067	9 086	8 824
Shares in asscociated companies	3 016	7	2 867
Other financial assets	973	1 156	1 126
Total non-current assets	18 031	15 025	17 726
Inventories	3 390	3 488	3 275
Current operating receivables	5 581	5 348	4 420
Current interest-bearing receivables	485	268	1 143
Cash and cash equivalents	666	655	660
Total current assets	10 122	9 759	9 498
Assets held for sale 1)	-	4 815	-
Total assets	28 153	29 599	27 224
Equity holders of the parent	14 095	13 621	13 977
Non-controlling interest	38	175	35
Total equity	14 133	13 796	14 012
Non-current interest-bearing liabilities	4 678	5 903	4 942
Other non-current liabilities	960	1 128	1 119
Total non-current liabilities	5 638	7 031	6 061
Interest-bearing current liabilities	3 125	2 213	2 433
Other current liabilities	5 257	5 075	4 718
Total current liabilities	8 382	7 288	7 151
Liabilites held for sale 1)	-	1 484	-
Total equity and liabilities	28 153	29 599	27 224

1) To largest extent related to Trelleborg Automotive

Specification of changes in equity	Jun 30	Jun 30	Dec 31
SEK M	2013	2012	2012
Attributable to equity holders of the parent
Opening balance, January 1	13 977	13 338	13 338
Effect from cnamge in accounting principles	-	-173	-173
Adjusted opening balance, January 1	13 977	13 165	13 165
Total comprehensive income	931	1 134	1 490
Dividend	-813	-678	-678
Closing balance	14 095	13 621	13 977
Attributable to non-controlling interest
Opening balance, January 1	35	166	166
Total comprehensive income	3	14	15
Acquisition	-	-	-14
Divested operations	-	-	-127
Dividend	0	-5	-5
Closing balance	38	175	35
Sum total equity, closing balance	14 133	13 796	14 012

Cash flow statements
Group, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Operating activities
Operating profit incl part in associated companies	616	873	1 328	1 520	2 270	2 462
Adjustments for items not included in cash flow:
Depreciation, property, plant and equipment	153	169	308	323	613	628
Amortization, intangible assets	12	11	25	22	51	48
Impairment losses, property, plant and equipment	-	0	2	4	20	22
Impairment losses, intangible assets	-	0	0	0	0	0
Provision for restructuring costs	204	32	241	51	358	168
Other, non cash-flow affecting items	-96	4	-208	2	-332	-122
Operating activities in discontiuned operations	-	166	-	310	0	310
	889	1 255	1 696	2 232	2 980	3 516
Interest received and other financial items	5	0	15	5	50	40
Interest paid and other financial items	-20	-7	-132	-103	-219	-190
Interest and other financial items in discontinued
operations	-	-25	-	-36	1	-35
Taxes paid	-140	-120	-271	-214	-517	-460
Taxes paid in discontinued operations	-	-19	-	-33	-1	-34
Cash flow from operating activities before changes in
working capital	734	1 084	1 308	1 851	2 294	2 837
Cash flow from changes in working capital:
Change in inventories	62	-43	-37	-55	340	322
Change in operating receivables	-257	-13	-1 126	-915	-699	-488
Change in operating liabilities	42	3	352	173	441	262
Change in working capital in discontinued operations	-	-142	-	-399	-1	-400
Utilization of restructuring provisions	-44	-30	-71	-66	-127	-122
Cash flow from operating activities	537	859	426	589	2 248	2 411
Investing activities
Acquisitions	-42	2	-173	2	-919	-744
Discontinued operations	-	419	-	307	21	328
Capital expenditure, property, plant and equipment	-189	-233	-323	-391	-779	-847
Capital expenditure in intangible assets	-19	-8	-34	-15	-82	-63
Capital expenditure in non-current assets in
discontinued operations Sale of non-current assets	- 3	-72 2	- 4	-126 6	-8 57	-134 59
Sale of non-current assets in discontinued operations Cash flow from investing activities	- -247	-5 105	- -526	24 -193	- -1 710	24 -1 377
Financing activities
Change in interest-bearing investments	-340	-354	515	-11	401	-125
Change in interest-bearing liabilities	878	255	417	503	-359	-273
Dividend - equity holders of the parent	-813	-678	-813	-678	-813	-678
Dividend - non-controlling interest	-	-5	0	-5	0	-5
Cash flow from financing activities	-275	-782	119	-191	-771	-1 081
Cash flow for the period	15	182	19	205	-233	-47
Cash and cash equivalents:
At beginning of the period	652	757	660	753	655	753
Reclassification to assets held for sale	-	-286	-	-286	286	-
Exchange rate differences	-1	2	-13	-17	-42	-46
Cash and cash equivalents at end of period	666	655	666	655	666	660

Continuing operations (unless otherwise stated)

SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net sales
Trelleborg Coated Systems	477	464	940	933	1 745	1 738
Trelleborg Industrial Solutions	1 140	1 162	2 234	2 364	4 372	4 502
Trelleborg Offshore & Construction	978	929	1 834	1 828	3 650	3 644
Trelleborg Sealing Solutions	1 833	1 944	3 583	3 917	6 881	7 215
Trelleborg Wheel Systems	1 111	1 052	2 220	2 180	3 905	3 865
Group items	246	290	517	599	994	1 076
Eliminations	-157	-229	-306	-486	-598	-778
Total	5 628	5 612	11 022	11 335	20 949	21 262
Operating profit 1)
Trelleborg Coated Systems	52	53	112	110	179	177
Trelleborg Industrial Solutions	110	76	206	165	369	328
Trelleborg Offshore & Construction	81	67	128	114	230	216
Trelleborg Sealing Solutions	416	464	768	893	1 388	1 513
Trelleborg Wheel Systems	137	133	281	289	441	449
Group items	-73	-91	-133	-203	-271	-341
Total	723	702	1 362	1 368	2 336	2 342
Operating margin, % 1)
Trelleborg Coated Systems	11,0	11,3	12,0	11,8	10,3	10,2
Trelleborg Industrial Solutions	9,6	6,6	9,2	7,0	8,4	7,3
Trelleborg Offshore & Construction	8,2	7,1	7,0	6,2	6,3	5,9
Trelleborg Sealing Solutions	22,7	23,8	21,4	22,8	20,1	20,9
Trelleborg Wheel Systems	12,4	12,6	12,7	13,2	11,3	11,6
Total	12,8	12,5	12,3	12,1	11,1	11,0

1) Excluding items affecting comparability and participations in TrelleborgVibracoustic

Net sales per market, share and organic growth, %	Q2 2013	Q2 2012	12M 2012
Western Europe (56%)	1	-3	-4
Other Europe (5%)	37	-17	-3
North America (20%)	-10	9	15
South and Central America (3%)	-11	10	0
Asia and other markets (16%)	12	-4	2
Total (100% refer to share 2012)	2	-2	1

Items affecting comparability in operating profit,
SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Cost of goods sold	-22	-8	-45	-18	-92	-65
Selling expenses	-4	-2	-9	-5	-16	-12
Administrative expenses	-2	-20	-5	-22	-15	-32
Research and development costs	-	0	-	-	-1	-1
Other operating income	-	203	-	203	-	203
Other operating expenses	-176	-2	-182	-6	-258	-82
Total items affecting comparability	-204	171	-241	152	-382	11

SEK M	Q2 2013	Q1 2013	Q4 2012	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q2 2011
Net sales
Trelleborg Coated Systems	477	463	406	399	464	469	434	432	475
Trelleborg Industrial Solutions	1 140	1 094	1 107	1 031	1 162	1 202	1 140	1 118	1 219
Trelleborg Offshore & Construction	978	856	924	892	929	899	777	713	833
Trelleborg Sealing Solutions	1 833	1 750	1 592	1 706	1 944	1 973	1 707	1 863	1 905
Trelleborg Wheel Systems	1 111	1 109	833	852	1 052	1 128	954	953	1 006
Group items	246	271	246	231	290	309	305	379	329
Eliminations	-157	-149	-142	-150	-229	-257	-213	-271	-275
Total	5 628	5 394	4 966	4 961	5 612	5 723	5 104	5 187	5 492
Operating profit 1)
Trelleborg Coated Systems	52	60	37	30	53	57	41	55	67
Trelleborg Industrial Solutions	110	96	93	70	76	89	88	91	116
Trelleborg Offshore & Construction	81	47	57	45	67	47	-33	39	55
Trelleborg Sealing Solutions	416	352	277	343	464	429	301	422	420
Trelleborg Wheel Systems	137	144	72	88	133	156	99	98	108
Group items	-73	-60	-90	-48	-91	-112	-120	-93	-92
Total	723	639	446	528	702	666	376	612	674
Operating margin, % 1)
Trelleborg Coated Systems	11,0	13,0	9,1	7,7	11,3	12,2	9,5	12,8	14,0
Trelleborg Industrial Solutions	9,6	8,8	8,4	6,8	6,6	7,4	7,8	8,1	9,5
Trelleborg Offshore & Construction	8,2	5,5	6,1	5,1	7,1	5,3	neg	5,4	6,6
Trelleborg Sealing Solutions	22,7	20,1	17,4	20,0	23,8	21,7	17,7	22,6	22,0
Trelleborg Wheel Systems	12,4	13,0	8,5	10,4	12,6	13,8	10,4	10,3	10,8
Total	12,8	11,8	9,0	10,6	12,5	11,6	7,4	11,8	12,3
Items aff. comparability in operating profit	-204	-37	-129	-12	171	-19	-63	-46	-28
Profit from part in TrelleborgVibracoustic	97	110	37	72	-	-	-	-	-
Operating profit	616	712	354	588	873	647	313	566	646

1) Excluding items affecting comparability

Income Statements, SEK M	Q2 2013	Q1 2013	Q4 2012	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q2 2011
Continuing operations
Net sales	5 628	5 394	4 966	4 961	5 612	5 723	5 104	5 187	5 492
Cost of goods sold	-3 702	-3 615	-3 404	-3 402	-3 720	-3 869	-3 570	-3 440	-3 635
Gross profit	1 926	1 779	1 562	1 559	1 892	1 854	1 534	1 747	1 857
Selling expenses	-538	-518	-501	-468	-542	-517	-506	-502	-513
Administrative expenses	-599	-580	-597	-545	-605	-589	-654	-584	-609
Research and development costs	-77	-73	-80	-74	-79	-76	-72	-65	-66
Other operating income/costs	10	31	62	54	35	-6	74	16	5
Profit from TrelleborgVibracoustic	97	110	37	72	-	-	-	-	-
Profit from part in other assoc companies	1	0	0	2	1	0	0	0	0
Items affecting comparability	-204	-37	-129	-12	171	-19	-63	-46	-28
Operating profit	616	712	354	588	873	647	313	566	646
Financial income and expenses	-32	-42	-37	-39	-34	-44	-70	-27	-41
Profit before tax	584	670	317	549	839	603	243	539	605
Tax	-165	-150	-59	-133	-130	-166	-110	-143	-176
Tax related to TrelleborgVibracoustic	-34	-29	-14	-18	-	-	-	-	-
Total tax	-199	-179	-73	-151	-130	-166	-110	-143	-176
Net profit	385	491	244	398	709	437	133	396	429
Discontinued operations 1)
Net sales	-	-	0	4	1 921	2 050	2 002	2 004	2 091
Operating profit	-	-	11	3	242	97	146	55	58
Profit before tax	-	-	12	3	217	86	153	28	50
Net profit	-	-	13	0	192	64	133	24	38
Group
Net sales	5 628	5 394	4 966	4 965	7 533	7 773	7 106	7 191	7 583
Operating profit	616	712	365	591	1 115	744	459	621	704
Profit before tax	584	670	329	552	1 056	689	396	567	655
Total net profit	385	491	257	398	901	501	266	420	467
- equity holders of the parent	384	489	256	396	896	494	262	413	465
- non-controlling interest	1	2	1	2	5	7	4	7	2
Earnings per share, SEK	Q2 2013	Q1 2013	Q4 2012	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q2 2011
Continuing operations	1,40	1,80	0,90	1,45	2,60	1,60	0,50	1,45	1,55
Discontinued operations 1)	0,00	0,00	0,05	0,00	0,75	0,20	0,45	0,10	0,15

Group, total 1,40 1,80 0,95 1,45 3,35 1,80 0,95 1,55 1,70

1) M ainly including operations divested to the joint venture TrelleborgVibracoustic in July 2012.

The Group´s financial assets and liabilites measured at fair value

At June 30, 2013	Assets/liabilites at fair value in profit and loss		Derivatives valued at fair value in profit and loss		Derivatives used for
					hedging purposes
SEK M
	Carrying	Measure	Carrying	Measure	Carrying	Measure
	amount	ment level	amount	ment level	amount	ment level	Total
Other financial non-current assets	24	2	-		-		24
Accounts receivable and other receivables	-		-3	2	5	2	2
Current interest-bearing receivables	110	2	80	2	16	2	206
Total assets	134		77		21		232
Interest-bearing non-current liabilites	-		-		51	2	51
Interest-bearing current liabilites	-		13	2	117	2	130
Accounts payable and other liabilities	-		-10	2	45	2	35
Total liabilites	-		3		213		216

At December 31, 2012	Assets/liabilites at fair value in profit and loss		Derivatives valued at fair value in profit and loss		Derivatives used for hedging purposes
SEK M	Carrying amount	Measure ment level	Carrying amount	Measure ment level	Carrying amount	Measure ment level	Total
Other financial non-current assets	25	2	-		-		25
Accounts receivable and other receivables	-		-		19	2	19
Current interest-bearing receivables	70	2	40	2	105	2	215
Total assets	95		40		124		259
Interest-bearing non-current liabilites	-		-		110	2	110
Interest-bearing current liabilites	-		72	2	10	2	82
Accounts payable and other liabilities	-		8	2	67	2	75
Total liabilites	-		80		187		267

Valuation techniques used to derive Level 2 fair values

Level 2 derivatives comprise forward foreign contracts and interest rate swaps and are used mainly for hedging purposes but also for proprietary trading. These forward foreign exchange contracts have been fair valued using forward exchange rates that are quoted in an active market. Interest rate swaps are fair valued using forward interest rated extracted from observable yield curves. The effects of discounting are generally insignificant for Level 2 derivatives.

Disclosure of fair value for debt and other financial instruments measured at amortized cost in the balance sheet.

All debt bears variable interest and the recognized amounts for interest-bearing liabilities are deemed to correspond to their fair value. For other financial instruments the recognized amounts are also deemed to correspond to their fair value.

Parent Company

Income statements, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Administrative expenses	-62	-54	-112	-113	-312	-313
Other operating income	190	186	192	187	226	221
Operating profit	128	132	80	74	-86	-92
Financial income and expenses	-41	126	-226	-123	-755	-652
Profit before tax	87	258	-146	-49	-841	-744
Appropriations	-	-	-	-	1 372	1 372
Tax	12	33	86	109	-111	-88
Net profit	99	291	-60	60	420	540

Statements of comprehensive income, SEK M	Q2 2013	Q2 2012	6M 2013	6M 2012	R12 2013	12M 2012
Net profit	99	291	-60	60	420	540
Other comprehensive income
Fair value	-	-	-	-	-	-
Income tax relating to components of other
comprehensive income	-	-	-	-	-	-
Other comprehensive income, net of tax	-	-	-	-	-	-
Total comprehensive income	99	291	-60	60	420	540

Balance sheets	Jun 30	Jun 30	Dec 31
SEK M	2013	2012	2012
Property, plant and equipment	23	22	24
Intangible assets	2	2	2
Financial assets	35 772	35 766	35 744
Total non-current assets	35 797	35 790	35 770
Current receivables	76	77	85
Current tax assets	3	-	-
Interest-bearing receivables	334	213	2 102
Cash and cash equivalents	0	65	0
Total current assets	413	355	2 187
Total assets	36 210	36 145	37 957
Shareholders' equity	12 466	12 859	13 339
Total equity	12 466	12 859	13 339
Untaxed reserves	105	-	105
Interest-bearing non-current liabilities	33	33	33
Other non-current liabilities	23	12	18
Total non-current liabilities	56	45	51
Interest-bearing current liabilities	23 526	23 162	24 210
Other current liabilities	57	79	252
Total current liabilities	23 583	23 241	24 462
Total equity and liabilities	36 210	36 145	37 957

Financial definitions

Return on shareholders' equity, % Profit for the period, attributable to shareholders of the Parent Company as a percentage of average shareholders' equity, excluding noncontrolling interests.

Return on capital employed, % Operating profit divided by the average capital employed.

EBITDA Operating profit excluding depreciation of PPE and amortization of intangible assets.

Free cash flow Operating cash flow, cash flow from financial items, taxes and the effect of restructuring measures on cash flow.

Equity method Shares in associated companies are accounted for according to the equity method, in which the initial participation in the associated company is adjusted to reflect the Group's participation in the profit of the associated company and any dividends. As regards the Group's largest associated company, TrelleborgVibracoustic, the share in profit is reported on two lines in the income statement; profit before tax and tax.

Net debt Interest-bearing liabilities less interest-bearing assets and cash and cash equivalents.

Net debt/EBITDA Net debt divided by EBITDA.

Operating cash flow EBITDA excluding other non-cash items, investments, sold non-current assets and changes in working capital but excluding cash flow pertaining to restructuring.

Earnings per share Net profit for the period, attributable to shareholders of the Parent Company, divided by the average number of shares outstanding.

Operating margin, % Operating profit as a percentage of net sales.

Operating profit Operating profit as stated in the income statement.

Debt/equity ratio, % Net debt divided by total equity.

Equity/assets ratio, % Total equity divided by total assets.

Capital employed Total assets less interest-bearing financial assets and noninterest-bearing operating liabilities (including pension liabilities) and excluding tax assets and tax liabilities.

Glossary

FPSO Floating Production, Storage and Offloading Installation.

Life sciences A term that mainly encompasses biological and medical sciences, in addition to biochemistry, pharmacology and biotechnology, among others.

LNG Liquefied Natural Gas.

OEM Original Equipment Manufacturer, the end producer of, for example, a tractor.

Plastics can be divided into two main groups. Thermoplastics are non-cross-linked plastics that are solid at room temperature but become soft and moldable when heated. Hard plastics are cross-linked plastics that disintegrate upon heating and do not regain their properties.

Polymer The word is derived from the Greek "poly," meaning "many" and "meros" meaning "parts." Polymers are made up of many small molecules – monomers – that are linked in long chains. Examples of polymers are plastics and rubber.

Polymer technology The technology relating to manufacturing processes for polymers in combination with their unique properties.

ROV Remotely Operated Vehicle.

Seasonal effects

The various market segments are subject to seasonal effects. Demand for the Group is normally higher in the first six months of the year than in the last six months.

About Trelleborg

Trelleborg is a world leader in engineered polymer solutions. We seal, damp and protect critical applications in demanding environments. Our innovative solutions accelerate performance for customers in a sustainable way.

Business concept

We seal, damp and protect in demanding industrial environments throughout the world. Our customers can rely on engineered solutions based on leading polymer technology and unique applications know-how.

Main strategies

Growth. Trelleborg strives to move from mature to more profitable and fast-growing segments. A rapid change was also implemented geographically with robust establishments in China, India and the rest of Asia, as well as South America with a focus on Brazil. Development and innovation. With our customer-focused development and service, we are consistently moving toward increasingly customized polymer solutions with a higher technology and knowledge content, that also satisfy society's demands for sustainability.

Excellence. We are systematically and continuously improving our

primary operational, commercial and financial processes with the customer's interests in mind, with the purpose of eliminating waste and unnecessary activities, so that sales growth can immediately leverage profitability.

Basis for value generation

Polymer engineering. For more than a century, and into the future, we pioneer applied polymer-engineering and materials technology in our chosen sectors.

Local presence, global reach. Our local teams leverage our global strength and capabilities when needed, acting as a local partner wherever we conduct business.

Application expertise. We have leading-edge technology and indepth understanding of the challenges our customers must overcome to seal, damp and protect critical applications. Customer integration. Having close integration with markets and customers through multiple channels and excellence across touchpoints, we make it easy to do business with us.

Business accelerator. Working as a proactive and long-term business partner, we deliver solutions based on market foresight to contribute to better business.

Trelleborg's market segments:

		Trelleborg	Trelleborg	Trelleborg	Trelleborg	Trelleborg
		Coated	Industrial	Offshore &	Sealing	Wheel
Market segment	Group total	Systems	Solutions	Construction	Solutions	Systems
Capital-intensive industry	49%
- Offshore oil & gas	11%			60%	2%
- Transportation equipment	12%		10%		11%	37%
- Agriculture	13%				3%	63%
- Infrastructure construction	9%		11%	40%
- Aerospace	4%				13%
Generel industry	40%	100%	69%		46%
Light vehicles	11%		10%		25%

Net sales per market segment 2012

The Trelleborg Group's operations

Continuing operations

Refers to operations within Trelleborg's five business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. It also includes Group items defined as central staff functions and two operations, the first of which is Group-wide and the second of which is in the build-up and integration phase.

TrelleborgVibracoustic

In July 2012, Trelleborg and Freudenberg formed a 50/50 joint venture in antivibration solutions for light and heavy vehicles, TrelleborgVibracoustic. The company is reported as an associated company in the financial accounts and recognized in accordance with the equity method, see page 24 for further information.

Discontinued operations

Refer generally to operations that are discontinuing or will be discontinued. For 2012, discontinued operations primarily relate to operations within Trelleborg Automotive, now part of TrelleborgVibracoustic, a protective products operation and a French light-vehicle component operation.

Group in total

The above three parts consolidated sum up to the Trelleborg Group in total.

Invitation to a telephone conference on July 23 at 09:30 a.m.

A telephone conference will be held on July 23 at 09:30 a.m. To participate in the telephone conference, call +46 (8) 519 993 68 or +44 207 660 2081 or +1 855 753 2237. Code: "Trelleborg". The conference will also be broadcast on the Internet in real time. Visit our website at: www.trelleborg.com/en/Investors/Presentations for the Internet link and presentation materials.

Financial calendar

Interim report July-September 2013 October 23, 2013 Year-end report 2013 February 13, 2014 Interim report January-March 2014 April 23, 2014 Annual General Meeting (Trelleborg) April 23, 2014 Interim report April-June 2014 July 22, 2014

For further information

Investors/analysts

Christofer Sjögren, VP Investor Relations Phone: +46 (0)410 - 670 68 Mobile: +46 (0)708 - 66 51 40 E-mail: christofer.sjogren@trelleborg.com Media

Karin Larsson, VP Media Relations Phone: +46 (0)410 - 670 15 Mobile: +46 (0)733 - 74 70 15 E-mail: karin.larsson@trelleborg.com

For information about the Trelleborg Group, Annual Reports, the stakeholder magazine T-TIME and other information, please visit the Group's website: www.trelleborg.com or download "Trelleborg IR" from the App Store or Google Play.

Trelleborg AB (publ) Corp. Reg. No. 556006-3421 PO Box 153, SE-231 22 Trelleborg, Sweden. Phone: +46 (0)410-670 00 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, July 23, 2013, at 07:45 a.m.