GROUP Trelleborg Group to acquire Smiths Polymer Sealing

GROUP Trelleborg Group to acquire Smiths Polymer Sealing Solutions Press conference - July 21, 2003 1

Key messages GROUP Main topics for today’s presentation Transaction & Deal Rationale PSS - a leader in the polymer seals industry Significant value creation Adding a strong platform for further growth 2

The transaction GROUP Trelleborg to acquire Smiths PSS Trelleborg has signed an agreement with Smiths Group plc to acquire its Polymer Sealings Solutions (PSS) division for £ 495 M or approx. 6, 500 MSEK on a net debt free basis PSS is a world leader in design, manufacture and supply of high-quality, high-specification polymer seals and sealing solutions to a diverse range of end-user markets For the last 12 months ending June 2003 PSS had (according to Trelleborg estimates) -Sales of approx. 5, 500 MSEK - EBITDA of approx. 880 MSEK - EBIT of approx. 680 MSEK - Approx. 6, 000 employees 3

Deal rationale GROUP PSS – a leader in the polymer precision seals industry PSS has leading market positions across a number of segments Extensive product range focused on high-value applications and world-class engineering and proprietary materials technology Industry leading financial performance Adding a new strong growth platform based on polymer technology Positive annual cost synergies estimated approx. 100 MSEK with full efftect after 3 years Earnings enhancing already 2004 4

Key messages GROUP Main topics for today’s presentation Transaction & Deal Rationale PSS - a leader in the polymer seals industry Significant value creation Adding a strong platform for further growth 5

A SEK 53 billion market with high entry barriers GROUP Global polymer seals overview Polymer seals market, Europe and North America SEK 41 billion Pipe Aerospace 5% 8% 45% Industrial Automotive Market drivers • More demanding applications • Tougher environmental legislation • Customer demands for improved reliability • Extended product life • Whole-life cost • Zero-defect supply 42% 6

Precision seal products. . . GROUP In three polymer areas – Rubber, Polyurethan and PTFE O-rings Hydraulic seals Rotary seals V-rings Gaskets Linear & rotary bearings Pipe seals Diaphragms Airframe seals 7

GROUP . . . in safety-critical environments well-known to Trelleborg PSS sales by end user, 2003 P, SEK 5. 1 billion Pipe Aerospace 5% 9% Automotive 26% 60% Industrial 8

Leader in European Industrial polymer seals GROUP PSS Industrial Niche player in North America Market drivers • Environmental legislation • Capital goods market • Reliability of OEM equipment • Extended product life • Reducing supplier base Industrial seals market, Europe SEK 9. 3 billion PSS 20% Other 42% 20% Freudenberg. NOK 4% 6% 8% Federal Parker Hannifin SKF Mogul Industrial seals market, North America SEK 9. 3 billion Other 24% Federal 5% Mogul 5% SKF 5% PSS 11% Greene Tweed Freudenberg 25% NOK 25% Parker Hannifin 9

Leading-edge in premium Automotive seals GROUP PSS Automotive Specialized niche player in Europe and North America Market drivers • Environmental legislation • Car and light truck production volumes • Reliability of OEM equipment • Extended product life • New applications • Material development and processing skills Automotive seals market, Europe SEK 8. 0 billion Freudenberg 22% NOK Other 43% 10% Hutchinson 6% PSS 6% 4%4% 5% Bruss Federal SKF Parker Hannifin Mogul Automotive seals market, North America SEK 9. 3 billion Other 20% Freudenberg 25% NOK PSS 5% SKF 15% Parker Hannifin 20% Federal Mogul 10

Global supplier of Aerospace polymer seals GROUP PSS Aerospace European leader and a runner-up in North America Market drivers • Commercial and military aircraft production volumes • Reducing supplier base • Passenger air miles • Military activity • Weight reduction Aerospace seals market, Europe SEK 1. 3 billion 23% PSS Other 46% 20% Hutchinson 4% 7% Greene Tweed Parker Hannifin Aerospace seals market, North America SEK 2. 0 billion Parker 31% Hannifin Other 50% 9% PSS 3% 7% Hutchinson Greene Tweed 11

Leading-edge in European Pipe polymer seals GROUP PSS Pipe In a growing market Market drivers • Construction activity • Infrastructure improvements • Economic development in Eastern Europe • Switch from concrete to plastic pipes • Ease of installation • Extended product life Pipe seals market, Europe SEK 1. 3 billion Bode Other 20% 30% 18% Hultec 6% 10% MOL PSS 16% Denso & Stein 12

Strong presence in Europe and North America GROUP PSS sales by region, 2003 P, SEK 5. 1 billion Showing strong growth in Asia Pacific North America Latin Asia America Pacific 3%1% 22% 74% Europe 13

Global manufacturing GROUP Overview of production locations Indiana Fort Wayne Colorado Broomfield Oregon Eugene Mexico Tijuana Ontario Guelph UK Ashchurch Swadlincote Rotherham Bridgewater Milford Haven Newtown Ross-on-Wye Denmark Helsingør Sweden Ersmark Forsheda Mörbylånga Poland Krakow (x 2) France Conde-sur. Noireau Italy New Livorno Hampshire Modena Somersworth Turin Japan Tokyo Malta India Bangalore Brazil Sao Paulo ~4, 300 manufacturing personnel in 27 facilities worldwide – 3, 300 Europe/Asia/Pacific – 900 North America – 100 latin America 14

A complete sealing solution provider GROUP PSS Industrial marketing key markets, Europe/Asia/Pacific, % of sales Close to end-users • 70% manufactured in-house • 30% outsourced Miscellaneous Machine tools/presses 16% 23% Raw material processing 2% Chemical/pharma 2% Oil & gas 2% Marine 3% 5% Sanitation Electronics 15% Fluid power 15% 8% 9% Chemical Process Industry Construction/ agricultural equipment 15

Strong R&D and testing capabilities GROUP Product development overview - safety critical products • Closely aligned with business lines and coordinated globally • Research primarily driven by customer requests, but also generic • 6 main development centers in Europe and North America • 310 employees engaged in engineering and technical support roles • New proprietary materials cooperation with polymer raw material suppliers • Full 3 D modeling reduces cost • 71 product design patents (existing or pending) 16

Key messages GROUP Main topics for today’s presentation Transaction & Deal Rationale PSS - a leader in the polymer seals industry Significant value creation Adding a strong platform for further growth 17

Positive contribution from the outset GROUP Key financials, Roll 12 M per June 2003 Sales MSEK Operating Profit excl gw amort, MSEK +32% 22, 431 EPS, excl. goodwill amort. ** SEK +57% 1878 +38% 12. 30 5, 500* 3. 40* 680* 16, 931 8. 90 1, 198 Trelleborg PSS*** Trelleborg pro forma • Approximate figures according to Trelleborg estimates • **Excluding non-comparable items *** At average rate GBP/SEK Trelleborg PSS*** Trelleborg pro forma Trelleborg PSS Trelleborg pro forma 18

Substantial synergies GROUP Synergy overview Sales and distribution Site consolidation Purchasing/sourcing materials Rationalization of certain activities (e. g. , mixing) Annual synergies – excl synergies from sales expected to be MSEK 100 full effect after 3 years Costs associated with synergy extraction estimated to MSEK 60 Stronger sales growth through medium/long term cross selling 19

Obtaining targeted “normalized” gearing GROUP Debt/equity ratio, Trelleborg, Proforma as per June 2003 129 Group target 75 -125% 40 Trelleborg June 2003 pro forma 20

Key messages GROUP Main topics for today’s presentation Transaction & Deal Rationale PSS - a leader in the polymer seals industry Significant value creation Adding a strong platform for further growth 21

Adding leading industry positions to our Group GROUP With excellent opportunities to grow 2002 Automotive AVS Industrial AVS Brake shims Boots Agricultural tires Solid industrial tires Industrial hose/distribution Marine fender systems Industrial profiles Rubber membranes PSS Aerospace seals PSS Automotive seals PSS Industrial seals PSS Pipe seals 1 1 3 2 1 1 1 3 1 2 2 2 1 3 2 - 1 2 1 1 2 - Share of core business 2002 pro forma incl. PSS 2002 ~90% ~80% 22

A balanced organization structure GROUP With maintained synergies Trelleborg Automotive Trelleborg Wheel Systems Trelleborg Engineered Systems Trelleborg Building Systems PSS Mixing Material Purchasing 24% 40% 8% 13% 15% Share of pro forma 2002 core operations sales (MSEK 22, 500) 23

Entering a phase of Profitable Growth GROUP Illustrative milestones Turnover increase by >110%, from SEK 8 to 23 billion Focused industry group 4. 5. Profitable growth Efficiency & • Product- & macro adjustment market-driven Company & own organic growth 2. share purchases • Acquisition. Portfolio • Staff reductions 1. driven growth optimization • Plant shut-downs • Leading New strategic • Strategic acquispositions direction itions, primarily • Leading • Divestment of within Automotive technologies Distribution 51% • Active share re • Broad anchoring • Divestment of purchase program • Polymer focus sector Other 3. Conglomerate 1999 Achieved goals 2003 Clear direction Enthusiasm & commitment Strategic & operational focus Released capital Strengthened market positions Critical mass Technology & service capabilities Financial balance Stable operational platform Credibility Transparency Visible leadership Pending Acquisition PSS Normalized gearing 24

To sum up. . . GROUP Main topics for today’s presentation Transaction & Deal rationale • GBP 495 million acquisition of Smiths PSS • Perfect fit within focused polymer track PSS - a leader in the polymer seals industry • Attractive SEK 53 billion polymer seals market • Precision seals in safety-critical environments • Leading industry positions • Global manufacturing and strong R&D Significant value creation • Solid strategic and commercial rationale • Positive contribution from the outset • Substantial synergies • Obtaining targeted “normalized” gearing Adding a strong platform for further growth • Leading positions, leading technologies • Improved balance in business portfolio • Combining profitability and growth 25

GROUP Q&A 26