Jonas Olsson, VP Group Purchasing at Trelleborg AB spoke at the CPO Event September 2013

2. "HOW TO MAKE PURCHASING VISUAL;
FROM FACTORY TO BOARD ROOM"?

3. A world leader in engineered polymer solutions
Group profile
 Focused polymer group
 Founded in 1905
 Annual sales:
about SEK 21 billion
~ € 2,3 billion, $ 3,2 billion
 Employing 15,300 people in
over 40 countries worldwide
 ~ 90 manufacturing plants
 160 FTE per plant
 Completely decentralized organization and culture
 Best profits ever last 2 quarters
2013-02-12 TRELLEBORG GROUP3

4. Trelleborg products
2012-12-06 TRELLEBORG GROUP4

5. Purchasing spend vs Sales
540 €
680 €
190 €
370 €
250 €
145 €
60 €
75 €
- €
200 €
400 €
600 €
800 €
1 000 €
1 200 €
1 400 €
1 600 €
Purchasing Salaries Profit
Depreciation/Capex
External compounds
Metal Components
Traded goods
Indirect material
Raw material
60% 28% 8%
5 September 22, 2013
Purchasing represent ~60% of our business

6. Who is buying the 1600 M€ today?
 Today we have around 120 purchasing professionals, on top of this
we think there are 1500 people that like to buy, but are not buyers.
 In order to reach all these people and implement purchasing tools and
excellence we need to train the trainer (the managers).
 PA/BU, Plant managers. Personnel in Logistic, HR, Warehouse,
Administration, Controllers, R&D etc etc.
6

7. 7September 28, 2012
Purchasing Excellence in Trelleborg
starts with our core purchasing principles:

8. Purchasing spend vs Sales
540 €
680 €
190 €
370 €
250 €
145 €
60 €
75 €
- €
200 €
400 €
600 €
800 €
1 000 €
1 200 €
1 400 €
1 600 €
Purchasing Salaries Profit
Depreciation/Capex
External compounds
Metal Components
Traded goods
Indirect material
Raw material
60% 28% 8%
8 September 22, 2013
Purchasing represent ~60% of our business

9. 9
Step 1
Step 2Step 3
Step 4
 Common principles
 Training
Core purchasing
principles
 Track
purchasing
efficiency
 Measure
progress
 Evaluate and
iterate – define
next priorities
 Talent
management
Program roadmap
 Define ambition
 Training
 Organizational set-up
 Purchasing Excellence
portal

10. Savings UK
2012-12-06 TRELLEBORG GROUP10
Richard Moore TOC 138 830 €
Iain Murphy TOC 8 538 €
Rob Cundill TOC - €
Tim Jordan TOC 71 110 €
Mandy Murray TOC 6 240 €
Charlotte Barkas TCS 9 841 €
Christofer Hollingworth TIS 19 339 €
Adele Smith TIS 1 400 €
Rachel Gear TIS 35 962 €
David Burlingham TIS 7 793 €
Martin Wakelin TSS-GOEL 46 000 €
Lee Madden TSS-GOEL - €
Andrew Parkinson TSS-GOEL 99 360 €
Karl Garner TSS-GOEL - €
Kelly Harnack TSS-SCM 3 488 €
Total UK Savings 447 901 €

11. Savings after US
2012-12-06 TRELLEBORG GROUP11
Dennis McEntire TCS 32 712 €
Jackie Harbort TCS 18 889 €
Paul Knight TOC 27 847 €
Peter Nazarco TOC 42 533 €
Jeff Gips TIS 5 185 €
Maurilio Jose Netto TWS 444 €
Jorge Gutierrez TSS-GOEL 48 741 €
Bill Sparks TSS-GOEL 19 396 €
Deborah Y Bodak TSS-GOEL 4 140 €
Tom Tsuleff TSS-SCM 1 540 €
David Andrews TSS-SCM 8 889 €
Ryan Cook TSS-SCM - €
Helena Tenorio/TSS/SJK/BR TSS-GOEL 34 074 €
Teri Sipp TSS-GOEP - €
sam.marciano@trelleborg.com TSS-GOEP 1 540 €
Bob Stien TAB 176 963 €
Total US Saving 422 894 €
Cumulated savings 870 795 €
US

12. Savings after France
2012-12-06 TRELLEBORG GROUP12
Pierre Congart TCS 79 167 €
Benoit Foussat TIS 10 340 €
Robin Lallemand TIS 24 538 €
Patricia Rochelle TSS-GOEL 9 900 €
Tassilo Klein 7 900 €
Mattias Löwenberg TIS 161 563 €
Magnus Jennefelt TAB - €
Bärbel Frank TSS-SCM 100 042 €
Laurence Ollivier 11 720 €
Bruno Favreau 41 800 €
Tomasz Mlodzik TSS-GOEL 2 120 €
Rob Cundill TSS-GOEL - €
Lee Madden TSS-GOEL - €
Willem de Haar TOC 22 000 €
Artuhr van Hammel TOC 29 832 €
Total France savings 500 923 €
Cumulated savings 1 371 718 €
France

13. Savings China
2012-12-06 TRELLEBORG GROUP13
Florence Chen TCS 350 €
Nancy Shi TCS 2 000 €
Steven Sun TCS - €
Joyce Tan TOC 10 343 €
Maria Zhang TOC 13 829 €
Kexin Ai TIS 10 400 €
Shanny Shen TIS 20 000 €
Calvin Wang TWS 6 500 €
Joy Liu TWS 5 000 €
Min Zhang (GOEL) TSS-GOEL 1 700 €
Mutsumi Goto (SCM) TSS-SCM 36 000 €
Fei Lu / Frank (SCM) TSS-SCM 60 000 €
Zhu Peng / Tom Zhu (SCM) TSS-SCM 1 500 €
sophie.jia@trelleborg.com (GOEP) TSS-GOEP 8 800 €
Sarah Qiu TSS-GOEL 1 200 €
Linda Hsiao (SCM) TSS-SCM 1 400 €
Ailing Li /Tina Zhang (GOEP) TSS-GOEP 2 590 €
Total China savings 181 612 €
Cumulated savings 1 553 329 €
China

14. Savings after Sweden
2012-12-06 TRELLEBORG GROUP14
Henrik Hansson Rahnboy TCS 87 000 €
Christina Holm TOC 3 600 €
TrudeKjerstad TOC 46 750 €
Ove Henning Lorenzon TOC 57 209 €
Gintara Pecia TCS - €
Martin Sjostrom TCS - €
Arto Viitanen TIS 43 800 €
Håkan Jakobsson TIS 19 150 €
Martin Svärd TIS 2 215 €
Johan Wijk TCS 35 000 €
Andris Sniceris TWS 25 000 €
Marie Petterson TWS 3 300 €
Samuel Backteman TIS 74 000 €
carsten.bremer@trelleborg.com TSS-GOEP 11 543 €
Joakim Hansson TIS 90 300 €
Alain Faure TIS 1 600 €
Katarzyna Sokulska TIS 40 455 €
Beatrice Amatori TWS 5 500 €
Total Trelleborg savings 546 422 €
Cumulative saving 3 019 701 €
Trelle-
borg

15. Competence enhancement programs
15
Competence
Enhancement
to create
Purchasing
Excellence
Non-Buyers (1500 individuals e-learning) Professional buyers (120 individuals)
Create
awareness
 E-learning
 Everyone who buys
 Status: Ongoing
 So far >1500 have
started training
 E-learning
 Everyone that
buys
 Status: Planned
fall 2012
Create
experts
Standardize
Improve
 Class room (2x2
days)
 Purchasers (~150)
 Status: Ongoing
 Same training for
all purchasers,
establishing a
common way of
working
 Class room (2x2
days)
 Purchasers (~140)
 Status: Ongoing
 Training tailored to
different themes
pending on needs
 Coaching program
 ~15 selected
purchasers
 Status: 2013
(TBD)
 Conduct future
trainings
 Examined by
presenting
different
purchasing cases
for BA
management with
result either
approved or re-
work required
Improve
Profit contribution of
€ 4,3 Million
Profit contribution of
€ 4,9 Million
€ 9,2 M

16. 16
Purchasing vs sales
Sales: Postive words like, growth, business acceleration, etc
Purchasing: Negative words like, saving, limitations, slow moving etc.

17. Quality – Procure
correct quality
Delivery, service
& CR – Obtain
desired level
Cost – Continuous
Improvement &
cash flow
People
1
2
3
4
Purchasing KPIs
Secure Customer
satisfaction
Ensure
productivity and
low inventory
Improve profit and
cash flow
Attract, retain &
develop
Objective

18. Our logo Our Pin
2012-12-06 TRELLEBORG GROUP18
Our T-shirt
Purchasing plans & Strategies

19. Billboards in all factories
2012-12-06 TRELLEBORG GROUP19

20. 20 June 12, 2013 Peter Tarp
Purchasing at Trelleborg 2010
1500 people have the right to buy 30% of spend

21. Competence enhancement programs
21
Competence
Enhancement
to create
Purchasing
Excellence
Non-Buyers (1500 individuals e-learning)
Create
awareness
 E-learning
 Everyone who buys
 Status: Ongoing
 So far >1500 have
started training
 E-learning
 Everyone that
buys
 Status: Ongoing
 So far >1500
have started
training
Improve
 E-learning
 Everyone that
buys
 Status: Q1-2014
Iterate
35% of all white color
employees have done
the e-learning I and II
1500 Purchasing
Excellence diplomas,
in offices.

22. How to communicate with 1500 people
2012-12-06 TRELLEBORG GROUP22
E-learning

23. 2012-12-06 TRELLEBORG GROUP23

24. 2012-12-06 TRELLEBORG GROUP24
Stairway to
Purchasing Excellence
E-Learning
1500 FTE
Level 1
Level 3
Plan 2014
Level 2
120 top
managers
Professional
Buyers 120 FTE
1 day
classroom
Level 1
2 x 2 days
Level 2
2 x 2 days
Experts
Plan 2014

25. Competence enhancement programs
25
Competence
Enhancement
to create
Purchasing
Excellence
Non-Buyers (1200 individuals e-learning) Professional buyers (140 individuals)
Create
awareness
 E-learning
 Everyone who buys
 Status: Ongoing
 So far >1500 have
started training
 E-learning
 Everyone that
buys
 Status: Planned
fall 2012
Create
experts
Standardize
Improve
 Class room (2x2
days)
 Purchasers (~150)
 Status: Ongoing
 Same training for
all purchasers,
establishing a
common way of
working
 Class room (2x2
days)
 Purchasers (~140)
 Status: Ongoing
 Training tailored to
different themes
pending on needs
 Coaching program
 ~15 selected
purchasers
 Status: 2013
(TBD)
 Conduct future
trainings
 Examined by
presenting
different
purchasing cases
for BA
management with
result either
approved or re-
work required
Improve
Profit contribution of
€ 4,3 Million
Profit contribution of
€ 4,9 Million
€ 9,2 M

26. 26 June 12, 2013 Peter Tarp
Purchasing at Trelleborg 2010
1500 people have the right to buy

27. 27 June 12, 2013 Peter Tarp
Purchasing at Trelleborg 2014

28. 2012-12-06 TRELLEBORG GROUP28

29. Actions 2013
 KPI reporting at all sites
 All sites shall have a Purchasing Plan
 All sites shall have 3 category strategies
 All sites shall have activities in place to improve KPI’s
 Purchasing training for managers
 Further implement visual Purchasing Excellence boards at plant level
 Global purchasing competition starts in June finish in December.
2012-12-06 TRELLEBORG GROUP29