Skf Ab Class A · OMXSTO:SKF_A
Skf Ab Class A — AB SKF — Q1 2024 Earnings Presentation
18 slides from Skf Ab Class A's earnings presentation, Apr 26, 2024
Slide 1: SKF Quarterly report Q1 2024 results presentation
SKF Quarterly report Q1 2024 results presentation
Slide 2: Q1 summary: Resilient margin despite sales decline
Q1 summary: Resilient margin despite sales decline 24,699 13.4% 1,781 MSEK MSEK Net cash flow Net sales Adjusted operating margin from operations Slide 2 SKF First-quarter report 2024
Slide 3: Soft customer demand across regions
Soft customer demand across regions Q1 sales by region and Organic growth EMEA Americas China & NEA India & SEA 11.0 SEK bn 7.3 SEK bn 4.0 SEK bn 2.4 SEK bn -4.9% -9.9% -11.2% +1.2% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia Organic growth: year-over-year Slide
Slide 4: Improved value chain flexibility in China is key to respond to demand fluctuations
Improved value chain flexibility in China is key to respond to demand fluctuations Increasing localized production Enabling greater resilience • Responding faster to demand Localization rate fluctuations 61% 65% • Improved lead time and availability 55% • Refocusing mainly to Heavy Industries to off
Slide 5: Q1 summary: Strong earnings performance in a soft market
Q1 summary: Strong earnings performance in a soft market Industrial Automotive -6.2% -7.3% Organic sales growth 16.4% Adjusted operating margin Organic sales growth 6.0% Adjusted operating margin Slide 5 SKF First-quarter report 2024
Slide 6: Executing our strategy – Priorities
Executing our strategy – Priorities 01 02 03 Create competitive Manage and Gear up for & intelligent value restructure ‘intelligent & clean’ chains our portfolio leadership Slide 6 SKF First-quarter report 2024
Slide 7: Leveraging our technology expertise driving profitable growth in high growth segment railway
Leveraging our technology expertise driving profitable growth in high growth segment railway • A global leader New designs of railway drives with ceramic solutions • Continuously outgrown the market – ~9% sales growth vs. ~3% market growth (CAGR 2020-2023) • Innovative solutions driving fleet effici
Slide 8: Fulfilling customer demand on being more sustainable through low embodied CO2 bearings
Fulfilling customer demand on being more sustainable through low embodied CO2 bearings Own operations Customer operations • Lightweight and low friction • Resourcing of new materials • Changing manufacturing location with lower CO2 footprint –70% –20% CO2e CO2e Slide 8 SKF First-quarter report 2024
Slide 9: Transforming into a more resilient and competitive SKF
Transforming into a more resilient and competitive SKF Diligent strategy execution Improved resilience • Decentralized organization Adjusted operating margin and Organic growth, % increasing responsiveness 13.1 13.3 13.4 12.0 Margin • Active portfolio management 11.5 10 8 • Continuous cost managemen
Slide 10: Niclas Rosenlew, CFO
Niclas Rosenlew, CFO Slide 10 SKF First-quarter report 2024
Slide 11: Net sales declining
Net sales declining Net sales, SEK bn Percent, year-over-year 26.5 26.5 24.7 24.7 0.1 % -7.0% 0.0% Q1 Q2 Q3 Q4 Q1 Q1 2023 Structure Organic* Currency Q1 2024 *Organic: volume, price and mix. 2023 2024 Slide 11 SKF First-quarter report 2024
Slide 12: Strong profit performance despite sales decline
Strong profit performance despite sales decline Adjusted operating profit, MSEK Adjusted operating profit, MSEK 3 478 3 478 550 3 303 3 303 -296 0 -429 Currency Organic* Q1 2024 Q1 Q2 Q3 Q4 Q1 Q1 2023 Structure Cost 2023 2024 *Organic: volume, price and mix. Slide 12 SKF First-quarter report 2024
Slide 13: Solid cash flow
Solid cash flow Net cash flow from operations, MSEK Net cash flow from operations, MSEK 1 095 3 937 3 664 3 435 2 993 -726 2 747 1 781 1 781 -1 581 Q1 Q2 Q3 Q4 Q1 Operating Non-cash Taxes NWC Operating profit items cash-flow 2023 2024 Q1 2024 Q1 2024 Slide 13 SKF First-quarter report 2024
Slide 14: 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, % 2023 2024 Q1 Q2 Q3 Q4 Q1 15.1% 13.0% -7.8 Q1 Q2 Q3 Q4 Q1 Whereof Leasing -12.8 2023 2024 *Net debt excluding Post-employment benefits, net Slide 14 SKF First-quarter report 2024
Slide 15: Outlook
Outlook • Looking into the second quarter of 2024, we expect a mid single-digit organic sales decline, y-o-y. • For the full year of 2024, we expect a low single-digit organic sales decline, compared to 2023. Cautionary statement This presentation contains forward-looking statements that are based o
Slide 16: A more resilient and competitive SKF
A more resilient and competitive SKF Q1: Strong earnings performance despite sales decline Continued execution of ongoing strategic initiatives • Create competitive and intelligent value chains • Manage and restructure our portfolio • Gear up for intelligent and clean leadership Slide 16 SKF First-q
Slide 17: Q&A
Q&A Slide 17 SKF First-quarter report 2024
Slide 18: oF.
oF.