Slide 1: Q2 2024 results presentation
Q2 2024 results presentation 18 July 2024
Slide 2: Transforming into a more resilient and competitive SKF
Transforming into a more resilient and competitive SKF Diligent strategy execution Improved resilience Adjusted operating margin R12 and Organic growth, % • Decentralized organization increasing responsiveness Margin 13 • Effective cost management 11.0 9.7 10.1 8 7.9 Growth • Active portfolio manage
Slide 3: Q2 summary: Solid margin in continued soft market conditions
Q2 summary: Solid margin in continued soft market conditions 25.6 13.0% 2.2 SEK bn SEK bn Net cash flow Net sales Adjusted operating margin from operations Slide 3 SKF Second-quarter report 2024
Slide 4: Soft customer demand across regions
Soft customer demand across regions Q2 sales by region and Organic growth EMEA Americas China & NEA India & SEA 10.8 SEK bn 7.9 SEK bn 4.5 SEK bn 2.4 SEK bn -6.3% -5.3% -12.4% +0.2% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia Organic growth: year-over-year Slide
Slide 5: Q2 summary: Resilient margin despite sales decline
Q2 summary: Resilient margin despite sales decline Industrial Automotive -4.7% -7.4% Organic sales growth 16.3% Adjusted operating margin Organic sales growth 5.3% Adjusted operating margin Slide 5 SKF Second-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 Second-quarter report 2024
Slide 7: Transforming R&D portfolio for increased value creation
Transforming R&D portfolio for increased value creation R&D portfolio overview SKF Tech & Innovation Summit – new product launches Housing seals Sealed split spherical roller bearings Accelerate R&D in targeted areas ~90% of R&D portfolio in Heavy Industries Heavy Industries High growth segments Sup
Slide 8: Niclas Rosenlew, CFO
Niclas Rosenlew, CFO Slide 8 SKF Second-quarter report 2024
Slide 9: Net sales decline driven by lower market demand
Net sales decline driven by lower market demand Net sales, SEK bn Percent, year-over-year 27.1 27.1 0.1 % 25.6 0.9% 25.6 -6.6% Q2 Q3 Q4 Q1 Q2 *Organic: volume, price and mix. 2023 2024 Slide 9 SKF Second-quarter report 2024
Slide 10: Solid earnings driven by strong price/mix and good cost control
Solid earnings driven by strong price/mix and good cost control Adjusted operating profit, MSEK Adjusted operating profit, MSEK 3 614 3 614 3 324 115 3 324 -161 0 -244 Q2 Q3 Q4 Q1 Q2 2023 2024 *Organic: volume, price and mix. Slide 10 SKF Second-quarter report 2024
Slide 11: Solid cash flow
Solid cash flow Net cash flow from operations, MSEK Net cash flow from operations, MSEK 3 937 3 664 1 063 3 435 2 489 -664 2 152 2 152 1 781 -736 Q2 Q3 Q4 Q1 Q2 Operating Non-cash Taxes NWC Operating profit items cash-flow 2023 2024 Q2 2024 Q2 2024 Slid 11 SKF Second-quarter report 2024
Slide 12: 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 Q2 Q3 Q4 Q1 Q2 14.7% 14.1% -10.7 -11.8 Q2 Q3 Q4 Q1 Q2 Whereof Leasing 2023 2024 *Net debt excluding Post-employment benefits, net Slide 12 SKF Second-quarter report 2024
Slide 13: Outlook and Guidance
Outlook and Guidance Outlook • Q3 2024: Organic sales expected to be relatively unchanged, year-over-year • FY 2024: A low single-digit organic sales decline expected, year-over-year Guidance Q3 2024 • Currency impact on the operating profit is expected to be around SEK 150 million negative compared
Slide 14: Q2: Margin resilience in continued soft markets
Q2: Margin resilience in continued soft markets • Continued strong price/mix and effective cost management • High pace in manufacturing footprint optimization • Continued execution on our strategy Slide 14 SKF Second-quarter report 2024
Slide 15: Q&A
Q&A Slide 15 SKF Second-quarter report 2024
Slide 16: okKF:
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