Slide 1: Quarterly presentation Q1 2025
Alt 4 quarterly presentation 25 April 2025 Q1 2025
Slide 2: Ask a question / Legal disclaimer
Ask a question Webcast Telephone Use question tab Press *1 above the slides Legal disclaimer This presentation contains forward-looking statements that reflect SKF’s current expectations on future events and financial and operational development. Words such as “intend”, “anticipate”, “expect”, “may”
Slide 3: Strong margin in turbulent markets
Q1 2025 | STRATEGIC HIGHLIGHTS Strong margin in turbulent markets Organic growth and adjusted operating margin • Continued margin resilience in a weak market 10% 14.0% • Effective commercial and operational execution, with robust 12.0% price/mix and cost reduction activities 5% 10.0% 8.0% • The work
Slide 4: Continued margin resilience in a weak market
Q1 2025 | 2025 SUMMARY Continued margin resilience in a weak market Net sales, SEK bn Adjusted operating margin, % Net cash flow from operations, SEK bn Organic sales –3.5%, year-over-year, driven Adjusted operating margin improved 0.1 pp Net cash flow from operations down 45% by weak market demand
Slide 5: Continued weak demand across regions
Q1 2025 | SALES BY REGION Continued weak demand across regions Region % of global net sales Net sales, Organic growth, Market highlights SEK bn % • Continued weak demand in certain large EMEA 43% 10.2 -7.0% markets including Germany and Italy • Signs of industrial markets bottoming out • Favourable
Slide 6: Tariff update
Q1 2025 | TARIFF UPDATE Tariff update Tariff impact Strong regional value chain1) Q1 - Largely compensated tariff costs through price adjustments ~50% of US sales is local-for-local Q2 - Expect to continue to largely compensate tariff costs given current levels Indirect tariff impact on global econo
Slide 7: Industrial business
Share of Group net sales Share of Group adjusted operating profit Q1 2025 | SEGMENT OVERVIEW Industrial business 71% 89% Organic growth -3.6% Net sales and adjusted operating margin • Lower volumes, particularly in EMEA driven by general market uncertainty, and in ISEA due to unfavorable timing effe
Slide 8: Automotive business
Share of Group net sales Share of Group adjusted operating profit Q1 2025 | SEGMENT OVERVIEW Automotive business 29% 11% Organic growth -3.0% Net sales and adjusted operating margin • Challenging market conditions, particularly in Europe • Strong performance in CNEA MSEK 9,000 7.0% • Solid price/mix
Slide 9: Creating two fit-for-purpose businesses
Q1 2025 | STRATEGIC HIGHLIGHTS Creating two fit-for-purpose businesses Automotive separation update Rightsizing to create strong foundations for the future • Operating model and organizational design decided for the Review process near completion Automotive business • The complexity of the separatio
Slide 10: Supporting customers through sustainable innovation
Q1 2025 | STRATEGIC HIGHLIGHTS Supporting customers through sustainable innovation Reinforced offering achieving ~20% lower friction in railway Real-time data via sensor-bearings enabling mining grinding mills to operate closer to full potential, achieving up to 20% increased fill-rates Ceramic bear
Slide 11: Financials
Financials Susanne Larsson, CFO SKF First-quarter report 2025 11
Slide 12: Financial summary
Q1 2025 FINANCIALS Financial summary MSEK unless otherwise stated Q1 2024 Q1 2025 Change Net sales 24,699 23,966 -3% Organic growth, % -7.0 -3.5 Gross profit 7,095 7,136 Gross margin, % 28.7 29.8 1.1 pp Adjusted operating profit 3,303 3,233 Adjusted operating margin, % 13.4 13.5 0.1 pp Items affecti
Slide 13: Bridge analysis
Q1 2025 | FINANCIALS Bridge analysis Q1 2024 Organic1) Cost Currency Structure2) Q1 2025 Net sales, MSEK 24,699 -853 6 114 23,966 Growth, % -3.5 0 0.5 -3.0 Adjusted operating profit, MSEK 3,303 -139 -30 90 9 3,233 Adjusted operating margin, % 13.4 13.5 Accretion/dilution, p.p. -0.1 -0.1 0.4 0.0 • Or
Slide 14: Cash flow
Q1 2025 | FINANCIALS Cash flow Net cash flow from operating activities, MSEK Net cash flow from operating activities 1,258 MSEK MSEK 4,500 16,000 4,000 14,000 2,885 3,500 12,000 -735 3,000 10,000 -602 2,500 8,000 2,000 6,000 1,500 977 1,000 4,000 -1,829 500 2,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Opera
Slide 15: Balance sheet and return on capital
Q1 2025 | FINANCIALS Balance sheet and return on capital Net debt, and Net debt/equity1) Adjusted ROCE 12 month rolling MSEK 14,000 50% 18% 12,000 16% 40% 14.0% 10,000 14% 30% 12% 8,000 10% 6,000 20% 8% 4,000 6% 10% 2,000 4% 0 0% 2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0% 23 24 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 F
Slide 16: Outlook and guidance
Q1 2025 Outlook and guidance Outlook • Q2 2025: We expect continued volatility and, even if we have seen signs of markets bottoming out, we plan for another quarter with negative volumes and expect organic sales to weaken somewhat, year-over-year. Guidance Q2 2025 • Currency impact on the operating
Slide 17: Strong margin in turbulent markets
Q1 2025 Strong margin in turbulent markets 01 02 03 04 Continued weak demand Margin resilience Automotive separation Organizational review Tough market conditions, Strong and effective Organizational design and Rightsizing to create a exacerbated by the current commercial and operational manufacturi
Slide 18: Q&A
Q&A
Slide 19: Slide 19