Interim report July-September 2016

"Advancing our positions"

“After an eventful second quarter, the third quarter is the first one that we
are now working in the new structure. We have divested Vibracoustic and CGS is
included for the first time for a full quarter. We have advanced our positions
and have a good structure for the future.

Trelleborg reported an increasing operating profit and sustained its margin at
the same high level as in the strong third quarter of last year. Sales rose by
18 percentage points compared with the preceding year, predominantly driven by
the acquisition of CGS in addition to other bolt-on acquisitions. EBIT excluding
comparable items increased by 15 percent.

We achieved these favorable results through our focus on securing leading market
positions and effective cost control in an environment distinguished by a
continued weak trend for several market segments. Offshore oil & gas was the
main factor underlying the fall-off in organic sales, at the same time as a more
positive trend was noted for our aerospace and automotive-related operations.
Organic sales were lower year on year, but slightly better than in the preceding
quarter.

In historical terms, the second half year is a seasonally weaker period due to
our customers’ purchasing patterns and vacation periods. Now that CGS is
included for the first time for a full quarter, we can see that this seasonal
pattern has been accentuated.

We are now working to integrate CGS and other acquisitions in a long-term,
sustainable and structurally appropriate manner. Naturally, these activities
affect both sales and earnings during a period as we build the platform for the
future. I would like to emphasis once again that Trelleborg’s focus is always on
the end result, sometimes at the expense of short-term quarterly figures.

During the quarter, we signed an agreement to acquire four companies which,
combined, will contribute just under SEK 900 M to our sales on an annual basis.
These acquisitions strengthen and complement us in niches where we have
ambitions to grow and they should be perceived as building blocks for the
establishment of leading market positions in already focused segments.

We are particularly pleased with the acquisition of Schwab in industrial
antivibration and the fact that we successfully completed a number of exciting
bolt-on acquisitions in Trelleborg Sealing Solutions. Our strategy continues to
primarily rest on organic growth initiatives, and thus bolt-on acquisitions
should be viewed as a complement to this strategy.

The trend in several segments remains subdued in most markets, primarily
offshore oil & gas, but also heavy general industry and agriculture. As
previously, our growth is instead being driven by other segments, such as the
automotive and aerospace industries. Our assessment is that the trend in
agricultural markets, albeit clearly weaker than in the preceding year, is
starting to plateau at a low level.

Market outlooks are associated with a high degree of uncertainty. However, our
general assessment is that demand for the fourth quarter will be on a par with
the third quarter. As in the past, we are carefully monitoring economic
developments and continue to maintain a high level of preparedness to manage
fluctuating market conditions,” says Peter Nilsson, President and CEO.

Third quarter
Net sales for the third quarter of 2016 amounted to SEK 7,072 M (5,975). Organic
sales declined by 5 percent, mainly as a result of the foreseen downturn in
deliveries to the oil & gas segment. The effects of exchange rate movements on
sales were negative 1 percent.

Effects of structural changes made a positive contribution of 24 percent, where
the acquisition of CGS accounts for the main part of the increase.

EBIT, excluding items affecting comparability, rose by 15 percent to SEK 915 M
(798), which was the Group’s highest result to date for a quarter and equivalent
to an EBIT margin of 12.9 percent (13.4).

Items affecting comparability for the quarter amounted to an expense of SEK 51 M
(expense: 109).

Earnings per share for continuing operations totaled SEK 2.33 (1.80), up 29
percent.

Operating cash flow amounted to SEK 1,066 M (766), up 39 percent.

Discontinuing operations
A payment of SEK 6.2 billion was received in the third quarter related to the
divestment of Vibracoustic. The corresponding amount was recognized as a
financial receivable in the second quarter.

Market outlook for the fourth quarter of 2016
Demand is expected to be on a par with the third quarter of 2016, adjusted for
seasonal variations.

Market outlook from the interim report published on July 19, 2016, relating to
the third quarter of 2016
Demand is expected to be on a par with, or slightly weaker, than the second
quarter of 2016, adjusted for seasonal variations.

For further information, please contact:
Media: Vice President Media Relations Karin Larsson, +46 (0)410 67015, +46
(0)733 747015, karin.larsson@trelleborg.com
Investors/analysts: Vice President IR Christofer Sjögren, +46 (0)410 67068, +46
(0)708 665140, christofer.sjogren@trelleborg.com

This information is information that Trelleborg AB is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The
information was submitted for publication, through the agency of the contact
person set out above, at 7:45 am CET on October 25, 2016.