Slide 1: SKF Quarterly Report Q1 2023 results presentation
SKF QUARTERLY REPORT Q1 2023 results presentation
Slide 2: Q1 summary: Strong organic sales and positive margin trend
Q1 summary: Strong organic sales and positive margin trend 10.1% Organic sales growth • Net sales of 26,549 MSEK (22,942) and 10.1% organic growth – Continued robust demand – We continue with active pricing activities • Adjusted operating profit of 3,478 MSEK (3,058) – Portfolio management and cost
Slide 3: Update on our strategic progress
Update on our strategic progress Q1 Growth y-on-y by segment, % 0 10 15 20 25 High growth segments Electric vehicles 25 • Maintained strong momentum in most prioritized segments Railway 22 • Electrification driving demand for ceramic bearings Commercial vehicles 22 New technologies Renewable energy
Slide 4: Industrial
INDUSTRIAL
Slide 5: Strong sales growth in all regions
Strong sales growth in all regions Q1 sales by region year-over-year, SEK bn 8.1 5.6 3.7 1.5 Americas EMEA China & NEA India & SEA Organic growth +5% +11% +12% +14% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia
Slide 6: Continued strong organic growth primarily driven by price/mix
Continued strong organic growth primarily Net sales, SEK bn 19.0 driven by price/mix 13.8 16.5 • Strong sales in most industries and geographies; 9.5% organic growth • Adjusted operating margin 16.9% (16.8%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Adjusted operating profit 3,209 MSEK (2,775) 2021 2022 2023 – S
Slide 7: Cleantech revenues now more than SEK 10 bn
Cleantech revenues now more than SEK 10 bn • Growing interest in circular economy boosting demand for our Total revenues from customer solutions enabling cleantech Railway performance offerings and capabilities SEK billion, 12m rolling - Customer wins with three major metro operators in Asia 9,2 10,
Slide 8: Region ISEA: regionalization and digitalization enabling growth
Region ISEA: regionalization and digitalization enabling growth • India is an important growth market – annual GDP expected to double by 2030 • SKF is well-positioned for growth through its long history, broad local presence and continued investments • By investing in regionalization, SKF improves a
Slide 9: Innovation in Machine tool segment with Super Precision Bearing technological step-up
Innovation in Machine tool segment with Super Precision Bearing technological step-up • SKF is a key manufacturer in the growing Machine Tool segment, offering a wide range of super precision bearings – >50% ceramic rolling elements • Annual sales of about SEK 2bn; margin accretive • SKF is enhancin
Slide 10: Automotive
AUTOMOTIVE
Slide 11: Double-digit growth in most regions
Double-digit growth in most regions Q1 sales by region year-over-year, SEK bn 3,3 3.3 2.4 2,4 1.0 1,0 0.8 0,8 Americas EMEA China & NEA India & SEA Organic growth +12% +17% -2% +15% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia
Slide 12: Continuing to shift portfolio
Continuing to shift portfolio Net sales, SEK bn 7.6 6.4 6.1 • Organic growth of 11.9%, strong demand for commercial vehicles and vehicle aftermarket • Adjusted operating profit of 270 MSEK (283) – Price realization on both aftermarket and OEM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Adjusted operating margin wa
Slide 13: SKF joins forces with CAKE to inspire fossil free production
SKF joins forces with CAKE to inspire fossil free production “The cleanest Dirt Bike ever”
Slide 14: Results Q1 2023
RESULTS Q1 2023 Niclas Rosenlew, CFO
Slide 15: Strong Net sales and organic growth
Strong Net sales and organic growth Net sales, SEK bn Percent, year-over-year 26.5 +7.6% 26.5 22.9 +10.1% 22.9 -2.0 % Q1 Q2 Q3 Q4 Q1 2022 2023 *Organic: volume, price and mix.
Slide 16: Continued price/mix momentum outgrowing cost increases
Continued price/mix momentum outgrowing cost increases Adjusted operating profit, MSEK *Organic: volume, price and mix.
Slide 17: Operate more efficiently – accelerating strategy implementation
Operate more efficiently – accelerating strategy implementation Targets communicated in 2022 Savings by end of Q1 Operate more efficiently was launched during 2022 with the aim to increase flexibility and reduce fixed costs, especially in Europe SEK 2 bn SEK 0.5 bn The program has so far achieved sa
Slide 18: Strong improvement in Cash flow
Strong improvement in Cash flow Net cash flow from operations, MSEK Net cash flow from operations, MSEK 12 months avg 2,747 2,747 131 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -271 2021 2022 2023
Slide 19: 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 Q1 Q2 Q3 Q4 Q1 15.0 13.0% -10.4 Net fin debt -12.8 Q1 Q2 Q3 Q4 Q1 Leasing 2022 2023
Slide 20: Summary
Summary • Strong organic sales and positive margin trend • Guidance: For Q2 2023 and for the full year 2023, we expect high single-digit organic sales growth • Continue to execute according to our "intelligent & clean" strategy
Slide 21: Together, we imagine rotation for a better tomorrow
- Together, we fe imagine rotation for a better tomorrow — By creating intelligent ‘and cleein solutions for people Bnd vale planet. -
Slide 22: Q&A
Q&A
Slide 23: Outlook
Outlook We expect to see continued Demand for Q2 2023 compared to Q2 2022 volatility and geopolitical Looking into the second quarter of 2023, we expect high single- uncertainty in the markets and as digit organic sales growth. a result, we expect continued high cost inflation and volatile demand Gu
Slide 24: Guidance for 2023
Guidance for 2023* Q2 2023: • Currency effect on operating profit: -100 million 2023: • Tax level: around 28% for 2023, excluding effects from divestments • Additions to property, plant and equipment around SEK 5 billion for 2023 * Guidance is approximate and based on current assumptions and exchang
Slide 25: Cautionary statement
Cautionary statement This presentation contains forward-looking statements that are based on the current expectations of the management of SKF. Although management believes that the expectations reflected in such forward- looking statements are reasonable, no assurance can be given that such expecta
Slide 26: okKF:
okKF: