Slide 1: SKF Quarterly report Q2 2023 results presentation
SKF Quarterly report Q2 2023 results presentation
Slide 2: Progressing our strategic journey
oKF-. Progressing Our strategic jOurney * 2022 — Setting the foundation in place * 20235 — Building execution momentum, cli
Slide 3: Q2 summary: Record sales, earnings and cash flow
oKF. Q2 summary: Record sales, earnings and cash flow 5,614 5,664 organi sale growth MSEK MSEK Adjusted operating profit Net cash flow from operations 7.9%
Slide 4: Q2 summary: Industrial and Automotive
Q2 summary: Industrial anger ive Industrial Automotive 13.8% 1 57% 15.9% ferrrr | 0 Organic sales growth Adjusted operating margin AN 7. 1 % Adjusted operating margin
Slide 5: Together, we re-imagine rotation for a better tomorrow
Together, we re-imagine rotation for a better tomorrow By creating intelligent and clean solutions for people and the planet -@- Accelerate technology development High-growth New a segments technologies => > Digitalize our full value chain GY Regionalized and competitive supply chain Services & Port
Slide 6: Continued double digit growth in most high-growth segments
HB Md! fy SKF. Continued double digit growth in most high-growth segments Q2 Growth y-on-y by segment, % -20 -10 0 10 20 30 Electric vehicles. PE 26 Railway EE 20 Renewable energy DR is Aerospace eee Commercial vehicles 14 Vehicle aftermarket | OG Industrial distribution a 7 Material handling | 1 Au
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Slide 8: New technologies: Increasing demand for our ceramic bearings
New technologies: Increasing demand for our ceramic bearings * Sustainability driving growth for Ceramics * Several benefits with Ceramics * Ramping up Industrialization of supply chain « Emerging industries Hydrogen — Green Energy
Slide 9: Recent achievements
oKF. Recent achievem 2020 2021 2022 2023 Q2 Cleantech revenues Virtual Power Purchase over SEK 11 bn Agreement signed
Slide 10: oKF-.
oKF-.
Slide 11: Record high net sales
SKF. Record high net sales Net sales, SEK bn 27.1 Percent, year-over-year +6.8% 27.1 23.7 +7,.9% 23.7 -0.1% Q2 Q3 Q4 Qi Q2 Q2 2022 Structure Organic* Currency Q2 2023 2022 2023 *Organic: volume, price and mix.
Slide 12: Price and mix offsetting costs
oKF. Price and mix offsetting costs Approximate Price/Mix and Cost inflation by quarter, SEK bn fd) Hl Price/Mix Cost inflation 20 2.2 20 24 18 18 18 ot ig ag 0.9 : 1.0 ne J : 7 o [| Q2 Q3 Q4 Ql Q2 Q3 Q4 Qi Q2 2021 2022 2023
Slide 13: Record high operating profit
Record high operating profit Adjusted operating profit, MSEK 3614 2473 Q2 Q3 Q4 Qi Q2 2022 2023 Adjusted operating profit, MSEK okKF. 1928 i 3614 -788 2473 B -4 Currency Organic* Q2 2023 QTD 2022 Structure Cost
Slide 14: Record Cash flow
Record Cash flow Net cash flow from operations, MSEK 3664 3350 2747 1293 1268 Q2 Q3 Q4 Qi Q2 2022 2023 Net cash flow from operations, MSEK L| a 3 664 | | 3213 1507 -972 - ail Operating Non-cash profit Q2 2023 items Taxes NWc Other Operating cash-flow Q2 2023 oKF.
Slide 15: Strong balance sheet and improving return on capital
Strong balance sheet and improving return on capital
Slide 16: Record-high sales, profit and cash flow
Record-high sales, profil, 7 N
Slide 17: Good progress within Portfolio management
Slide 18: Outlook
Outlook Demand for Q3 2023 compared to Q3 2022 Looking into the third quarter of 2023, we expect mid single-digit organic sales growth. Guidance 2023 For the full year, we expect high single-digit organic sales growth compared to 2022. Going into the second half of the year, we expect the normal thi
Slide 19: Guidance for 2023
oKF. Guidance for 2023* Q3 2023: * Currency effect on operating profit: -150 million 2023: * Tax level: around 27% for 2023, excluding effects from divestments * Additions to property, plant and equipment around SEK 5.5 billion for 2023 * Guidance is approximate and based on current assumptions and
Slide 20: 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 21: Q&A
oKF-: