Skf Ab Class A · OMXSTO:SKF_A
Skf Ab Class A — AB SKF — Q3 2023 Earnings Presentation
17 slides from Skf Ab Class A's earnings presentation, Oct 27, 2023
Slide 1: SKF Quarterly report Q3 2023 results presentation
SKF Quarterly report Q3 2023 results presentation
Slide 2: Q3 summary: Resilient margins and strong cash flow despite slowdown in demand
Q3 summary: Resilient margins and strong cash flow despite slowdown in demand 25,771 3,435 11.5% MSEK Adjusted operating margin MSEK Net Sales Net cash flow from operations
Slide 3: Resilient organic sales growth in EMEA and India
Resilient organic sales growth in EMEA and India Q3 sales by region year-over-year and Organic growth EMEA Americas China & NEA India & SEA 10.4 SEK bn 7.8 SEK bn 5.1 SEK bn 2.5 SEK bn +3.7% -3.6% -5.5% +4.6% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia
Slide 4: Q3 summary: Industrial and Automotive
Q3 summary: Industrial and Automotive Industrial Automotive 3.1% -2.1% Organic sales growth 13.7% Adjusted operating margin Organic sales growth 6.2% Adjusted operating margin
Slide 5: Continuing our strategic journey
Continuing our strategic journey Accelerate technology development High-growth New segments technologies Digitalize our full value chain Regionalized and competitive supply chain Services & Portfolio Aftermarket management Operate more efficiently – closer to customers Growth areas Growth enablers
Slide 6: Strong Innovation pipeline
Strong Innovation pipeline Connected bearings for the 3D printed axlebox covers SKF Agri Hub S100 for the Machine Tool Segment for the Railway segment Agriculture segment ~SEK 1.5 bn in annual sales ~ SEK 5.5 bn in annual sales ~SEK 4 bn in annual sales • Enhanced manufacturing • Less obsolescence i
Slide 7: Increasing local content in North America
Increasing local content in North America - Inauguration of our new factory in Monterrey, Mexico SEK 700 million investment in Greenfield site – enhancing the SKF value chain in the Americas North America local content North America local content 42% >80% 2023 2026
Slide 8: Developing data-driven maintenance at LKAB
Developing data-driven maintenance at LKAB 5-year agreement for advanced monitoring of 12,000 assets: ü Increased uptime ü Reduced energy consumption ü Improved safety ü Reduced C02 footprint
Slide 9: Aerospace strategic review concluded
Aerospace strategic review concluded • A high-growth, high-tech industry • Strong positions – tangible synergies with our Industrial business • Investing in our core areas of Aeroengine and aero structures bearings • Exploring options to exit non-core business lines
Slide 10: Refocused Aerospace business making us an even stronger partner to our customers
Refocused Aerospace business making us an even stronger partner to our customers Further strengthening and investing in Exploring strategic options to fully or partially our Aerospace core areas exit high-quality non-core business lines Elgin Hanover • Aeroengine and aerostructure bearing offer • Me
Slide 11: Niclas Rosenlew, CFO
Niclas Rosenlew, CFO
Slide 12: Net sales growth moderating
Net sales growth moderating Net sales, SEK bn Percent, year-over-year +3.7% 25.8 25.8 25.0 25.0 0.1 % -0.6% Q3 Q4 Q1 Q2 Q3 Q3 2022 Structure Organic* Currency Q3 2023 2022 2023 *Organic: volume, price and mix.
Slide 13: Solid performance in a challenging market environment
Solid performance in a challenging market environment Adjusted operating profit, MSEK Adjusted operating profit, MSEK 508 2 956 2 956 387 2 131 2 131 0 -70 Q3 Q4 Q1 Q2 Q3 Currency Organic* Q3 2023 QTD 2022 Structure Cost 2022 2023
Slide 14: Continued strong cash flow by higher operating profit and reduced working capital
Continued strong cash flow by higher operating profit and reduced working capital Net cash flow from operations, MSEK Net cash flow from operations, MSEK 3664 1045 770 3435 3 435 3350 - 201 2747 2 567 -746 1268 Q3 Q4 Q1 Q2 Q3 Taxes NWC Other Operating Non-cash Operating profit items cash-flow 2022 2
Slide 15: Strong balance sheet and improving return on capital
Strong balance sheet and improving return on capital Net debt, SEK bn ROCE adjusted 12 month rolling, % 2022 2023 14.9% Q3 Q4 Q1 Q2 Q3 12.6 -9.8 -11.9 Q3 Q4 Q1 Q2 Q3 Net fin debt 2022 2023 Leasing
Slide 16: Summary
Summary Resilient margins and strong cash flow despite volume decline Progressing our “intelligent & clean” strategy • Aerospace strategic review concluded • Strong innovation pipeline Looking into the fourth quarter of 2023, we expect a low single-digit organic sales decline For the full year, we e
Slide 17: Q&A
Q&A