Skf Ab Class A · OMXSTO:SKF_A
Skf Ab Class A — FY2000 Earnings Presentation
31 slides from Skf Ab Class A's earnings presentation, Jan 29, 2001
Slide 1: The SKF Group Year-end report 2000
The SKF Group Year-end report 2000
Slide 2: Annual key data
SKF Group Annual key data MSEK 2000 1999 Net sales 39 848 36 693 +8.6 % Operating profit 3 674 2 520 +45.8 % Profit before taxes 3 002 1 769 +69.7 % Net profit 1 962 1 111 +76.6 % Cash flow 2 880 2 219 +29.8 % ROCE 16.2% 11.2% Profit per share, SEK 17.23 9.76 29 January, 2001
Slide 3: Quarterly key data
SKF Group Quarterly key data excl non-recurring items MSEK Q4/2000 Q4/1999 Net sales 10 459 9 300 + 12.5% Operating profit 941 676 + 39.2% Operating margin 9.0% 7.3% Profit before taxes 761 518 + 46.9% Cash flow 1 088 417 29 January, 2001
Slide 4: Net Sales
SKF Group MSEK Net Sales 11,000 10,000 9,000 8,000 6.9% -1.9% 2.7% 1.1% -1.8% -0.9% -6.6% -1.5% 5.5% 4.8% 12.1% 12.5% 7,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1998 1999 2000 29 January, 2001
Slide 5: Net sales change
SKF Group Net sales change Full year Fourth quarter 2000/1999 2000/1999 Structure - 0.5% +0.4% Volume + 5.1% +2.4% Price/mix + 1.6% +2.8% Currencies + 2.4% +6.9% Total + 8.6% +12.5% 29 January, 2001
Slide 6: Operating margin
SKF Group Operating margin excl. non-recurring items % 10 8 6 4 2 4.3% 5.5% 6.3% 7.3% 8.5% 9.0% 9.4% 9.0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1998 1999 2000 29 January, 2001
Slide 7: Profit per share
SKF Group Profit per share SEK 20 15 10 5 0 -5 -10 -15 1995 1996 1997 1998 1999 2000 29 January, 2001
Slide 8: Cash flow after investments before financing
SKF Group Cash flow after investments before financing MSEK 1,000 800 600 400 200 0 -200 -400 -600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1998 1999 2000 29 January, 2001
Slide 9: Inventories as % of annual sales
SKF Group Inventories as % of annual sales % 30 29 28 27 26 25 24 23 22 21 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1998 1999 2000 29 January, 2001
Slide 10: Additions to tangible assets
SKF Group Additions to tangible assets MSEK Depreciation according to plan 3,000 2,500 2,000 1,500 1,000 500 0 1995 1996 1997 1998 1999 2000 29 January, 2001
Slide 11: Acquisitions during 2000
SKF Group Acquisitions during 2000 Development Engineering Internat. Ltd. Machine Support BV Electrac S.A. Sealpool AB Diagnostics Instruments Ltd. Revolve Magnetic Bearings Inc. Roller Bearing Industries Inc. MTSR Ltd. 29 January, 2001
Slide 12: Target and 12-monthly rolling
SKF Group Target and 12-monthly rolling 12-monthly rolling December 31 Target* Operating profit, 3 674 4 000 MSEK Operating margin 9.2% 10.0% Earnings per share in SEK 17.23 20.00 Return on capital employed 16.2% 18.0% * set in April 2000, to be reached in a couple of years 29 January, 2001
Slide 13: Automotive Division
SKF Group Automotive Division MSEK Q1 Q2 Q3 Q4 2000 External sales 2 310 2 291 2 022 2 259 8 882 Ext.sales 00/99 7.6% 1.4% 2.8% 4.9% 4.2% Total sales 2 512 2 603 2 255 2 513 9 883 Operating result 124 127 60 65 376 Operating margin 4.9% 4.9% 2.7% 2.6% 3.8% 29 January, 2001
Slide 14: Seals Division
SKF Group Seals Division MSEK Q1 Q2 Q3 Q4 2000 External sales 1 056 1 050 1 018 1 006 4 130 Ext.sales 00/99 14.0% 5.3% 11.4% 10.2% 10.1% Total sales 1 238 1 210 1 122 1 158 4 728 Operating result 39 58 31 -1 127 Operating margin 3.2% 4.8% 2.8% -0.1% 2.7% 29 January, 2001
Slide 15: Electrical Division
SKF Group Electrical Division MSEK Q1 Q2 Q3 Q4 2000 External sales 404 403 372 396 1 575 Ext.sales 00/99 -0.5% 2.0% 14.8% 13.1% 6.8% Total sales 1 556 1 642 1 431 1 540 6 169 Operating result 93 138 121 108 460 Operating margin 6.0% 8.4% 8.5% 7.0% 7.5% 29 January, 2001
Slide 16: Service Division
SKF Group Service Division MSEK Q1 Q2 Q3 Q4 2000 External sales 2 939 3 232 3 206 3 467 12 844 Ext.sales 00/99 7.1% 12.6% 18.1% 13.6% 12.9% Total sales 3 133 3 473 3 462 3 786 13 854 Operating result 206 259 280 268 1 013 Operating margin 6.6% 7.5% 8.1% 7.1% 7.3% 29 January, 2001
Slide 17: Steel Division
SKF Group Steel Division MSEK Q1 Q2 Q3 Q4 2000 External sales 487 472 395 484 1 838 Ext.sales 00/99 13.3% 10.0% 23.4% 23.2% 16.9% Total sales 1 205 1 184 961 1 131 4 481 Operating result 73 57 21 22 173 Operating margin 6.1% 4.8% 2.2% 1.9% 3.9% 29 January, 2001
Slide 18: January 2001
SKF Group January 2001 Market development during the fourth quarter confirmed that demand had begun to weaken. Production levels were lowered in most of SKF's factories at the end of last year in order to adapt the manufacturing to a period of weaker demand. 29 January, 2001
Slide 19: Volume trend development by region
SKF Group Volume trend development Total sales % Oct 2000 Jan 2001 Europe 53 North America 27 Asia Pacific 13 Latin America 5 Middle East/Africa 2 29 January, 2001
Slide 20: Volume trend development by division
SKF Group Volume trend development Total external sales, % Oct 2000 Jan 2001 Automotive 22 Industrial 22 Electrical 4 Service 32 Seals 10 Steel 5 29 January, 2001
Slide 21: Priorities 2001
SKF Group Priorities 2001 Protect the profit reduce the bill for wages and salaries carry through price increases Exploit market opportunities expand service and maintenance business develop trading, e-commerce and logistics promote high-value products and solutions establish more partnerships 29 Ja
Slide 22: Salaries & Wages / Sales
SKF Group Salaries & Wages / Sales % 40 38 36 34 32 30 1996 1997 1998 1999 2000 29 January, 2001
Slide 23: Users connected, SKF vs peers
SKF Group 23 countries 1 400 users connected SKF Rockwell Timken INA Sandvik Mars 2000 January 2001 29 January, 2001
Slide 24: Priorities 2001
SKF Group Priorities 2001 Special focus improve the Automotive and Seals operations in the US regain profit in the Swedish steel activity Reduce assets and fixed costs outsource internal services outsource component manufacturing sell real estate reduce inventories 29 January, 2001
Slide 25: Tangible Assets / Sales
SKF Group Tangible Assets / Sales % 40 38 36 34 32 30 1996 1997 1998 1999 2000 29 January, 2001
Slide 26: Industrial Division
SKF Group Industrial Division MSEK Q1 Q2 Q3 Q4 2000 External sales 2 162 2 126 2 062 2 255 8 605 Ext.sales 00/99 1.1% 1.5% 12.1% 16.4% 7.4% Total sales 3 469 3 705 3 489 3 833 14 496 Operating result 371 418 411 388 1 588 Operating margin 10.7% 11.3% 11.8% 10.1% 11.0% 29 January, 2001
Slide 27: SKF Industrial Division In focus
SKF Industrial Division In focus Value added products Solution selling Smart products Linear Motion & Precision Technologies Flexible manufacturing
Slide 28: Added value solutions: Customer A
Industrial Division Added value solutions Customer A: Producer of sterilizing equipment Problem: Corrosion due to heat and humidity, even with stainless steel bearings. SKF solution: NoWearTM Business growth: 6 times Gross Profit: 11 times
Slide 29: Added value solutions: Customer B
Industrial Division Added value solutions Customer B: Producer of encoders Problem: Electric current through bearings SKF solution: Hybrid bearings Business growth: 19 times Gross Profit: 26 times
Slide 30: Increased robustness in manufacturing
Industrial Division Increased robustness in manufacturing Flexible working hours Outsourcing of non-critical processes and indirect activities Decreased inventories Increased speed
Slide 31: Zero Defect Channels
Industrial Division Zero Defect Channels % 60 50 40 Gold Award 30 Silver Award Award 20 10 0 1997 1998 1999 2000