Skf Ab Class A · OMXSTO:SKF_A
Skf Ab Class A — Q4 2024 Earnings Presentation
19 slides from Skf Ab Class A's earnings presentation, Jan 31, 2025
Slide 1: Q4 2024 results presentation
Q4 2024 results presentation 31 January 2024
Slide 2: Ask a question / Legal disclaimer
Ask a question Telephone Webcast Press *1 Use question tab above the slides Legal disclaimer This presentation contains certain forward-looking statements that reflect SKF’s present view of future events as well as financial and operational development. Words such as “intend”, “anticipate”, “expect”
Slide 3: Strategic initiatives help to further improve margin resilience
Strategic initiatives helps to further improve margin resilience Strategic highlights Continued margin resilience Adjusted operating margin R12 and Organic growth, % • Margin resilience by active price and portfolio management Margin • Strengthened value chain through 13 regionalization Growth • Sep
Slide 4: 2024 summary: Solid margin in a challenging market
2024 summary: Solid margin in a challenging market 98.7 12.3% SEK bn Net sales Adjusted operating margin 10.8 7.75 SEK bn SEK Net cash flow from operations Proposed dividend per share Slide 3 SKF Fourth-quarter report 2024
Slide 5: Q4 summary: Strong execution supporting margin resilience
Q4 summary: Strong execution supporting margin resilience 24.7 11.1% n 3.3 SEK bn SEK bn Net cash flow Net sales Adjusted operating margin from operations Slide 4 SKF Fourth-quarter report 2024
Slide 6: Mixed regional organic growth
Mixed regional organic growth Q4 sales by region and Organic growth EMEA Americas China & NEA India & SEA 9.9 SEK bn 7.5 SEK bn 4.7 SEK bn 2.6 SEK bn -7.9% +5.3% -9.9% +9.9% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia Organic growth: year-over-year Slide 5 SKF Fo
Slide 7: Margin resilience despite continued volume declines
Margin resilience despite continued volume declines Industrial Automotive -4.0% -2.7% Organic sales growth 14.6% Adjusted operating margin Organic sales growth 2.6% Adjusted operating margin Slide 6 SKF Fourth-quarter report 2024
Slide 8: Optimizing the value chain
Optimizing the value chain Continued focus on Investing in the regionalization value chain Increases customer value and Strengthening ceramic bearings improves our resilience and efficiency capacity and capabilities Slide 7 SKF Fourth-quarter report 2024
Slide 9: Increased regionalization rates
Increased regionalization rates Regionalization rates progressing according to plan Americas EMEA Asia 69% 95% 68% +3pp +0pp +5pp vs PY vs PY vs PY Regionalization brings market- and operational benefits • Increased customer satisfaction • Improved cost-competitiveness • Greater supply chain resilie
Slide 10: Lead-times in China shortened by 25%
Lead-times in China shortened by 25% Regionalization rate Lead-time Key success factors Regionalization rate, % -25% 35 • Invested in local production- 80 and sourcing capacity 30 70 25 • Developed local R&D and 20 manufacturing competencies 60 15 • Solid knowledge transfer 10 from other geographies
Slide 11: Strengthening ceramic bearing capacity and capabilities
Strengthening ceramic bearing capacity and capabilities Significant customer value Positions us to benefit from strong megatrends Electrical erosion resistant High speed capability Higher wear resistance and extended life Electrification Sustainability Industry 4.0 » To maximize its potential, we ha
Slide 12: Carina van den Berg, acting CFO
Carina van den Berg, acting CFO Slide 11 SKF Fourth-quarter report 2024
Slide 13: Q4 2024 Bridge analysis
Q4 2024 Bridge analysis MSEK Q4 2023 Organic1 Cost Currency Structure2 Q4 2024 Net sales 24,438 -745 958 74 24,725 Growth, % -3.1 3.9 0.3 1.1 Adjusted operating profit 2,929 48 -146 -104 8 2,735 Adjusted operating margin, % 12.0 11.1 Accretion/dilution, pp +0.6 -0.6 -0.9 0.0 1) Organic = volume, pri
Slide 14: Solid cash flow driven by margin resilience and working capital reduction
Solid cash flow driven by margin resilience and working capital reduction Net cash flow from operations, MSEK Net cash flow from operations, MSEK 3 937 3 283 1 157 3 576 3 283 291 2 331 2 152 -496 1 781 Q4 Q1 Q2 Q3 Q4 Operating Non-cash Taxes NWC Operating profit items cash-flow 2023 2024 Q4 2024 Q4
Slide 15: Strong balance sheet and return on capital
Strong balance sheet and return on capital Net debt*, SEK bn Adjusted ROCE 12 month rolling, % 2023 2024 Q4 Q1 Q2 Q3 Q4 15.4% 14.2% -7.6 -8.7 Whereof Leasing Q4 Q1 Q2 Q3 Q4 2023 2024 *Net debt excluding Post-employment benefits, net Slide 14 SKF Fourth-quarter report 2024
Slide 16: Outlook and guidance
Outlook and guidance Outlook • Q1 2025: Organic sales is expected to weaken somewhat, year-over-year Guidance Q1 2025 • Currency impact on the operating profit is expected to be around SEK 200 million positive compared to the first quarter 2024, based on exchange rate per 31 December 2024 Guidance F
Slide 17: Strategic initiatives help to further improve margin resilience
Strategic initiatives helps to further improve margin resilience Strategic highlights Continued margin resilience Adjusted operating margin R12 and Organic growth, % • Margin resilience thanks to active price and portfolio management Margin • Strengthened value chain through 13 regionalization Growt
Slide 18: Q&A
Q&A Slide 17 SKF Fourth-quarter report 2024
Slide 19: okKF:
okKF: