Skf Ab Class A · OMXSTO:SKF_A
Skf Ab Class A — Q3 2024 Earnings Presentation
19 slides from Skf Ab Class A's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 results presentation
Q3 2024 results presentation 30 October 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: Transforming into a more resilient and competitive SKF
Transforming into a more resilient and competitive SKF Diligent strategy execution Continued margin resilience • Unlocking value by separating Adjusted operating margin R12 and Organic growth, % the Automotive business • Strategic portfolio Margin management 13 • Divesting non-core asset Growth 8 wi
Slide 4: Q3 summary: Solid margin and strong cash flow in a weak market
Q3 summary: Solid margin and strong cash flow in a weak market 23.7 11.9% n 3.6 SEK bn SEK bn Net cash flow Net sales Adjusted operating margin from operations Slide 3 SKF Third-quarter report 2024
Slide 5: Weak customer demand in most regions
Weak customer demand in most regions Q3 sales by region and Organic growth EMEA Americas China & NEA India & SEA 9.5 SEK bn 7.2 SEK bn 4.5 SEK bn 2.4 SEK bn -5.2% -2.9% -8.7% +2.9% EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia Organic growth: year-over-year Slide 4
Slide 6: Resilient margin despite volume decline
Resilient margin despite volume decline Industrial Automotive -4.0% -4.6% Organic sales growth 15.0% Adjusted operating margin Organic sales growth 4.7% Adjusted operating margin Slide 5 SKF Third-quarter report 2024
Slide 7: A more focused SKF – Strategic portfolio management
A more focused SKF – Strategic portfolio management continues to unlock value Strengthening Optimizing n Separation of lubrication Aerospace Automotive position offering Slide 6 SKF Third-quarter report 2024
Slide 8: Optimizing Aerospace offering by divesting non-core asset
Optimizing Aerospace offering by divesting non-core asset Unlocking value – Aerospace remains a EV of SEK ~2.3bn for SEK ~0.7bn sales large, strategic segment • Signed a contract to divest Hanover ring and seal % of Industrial sales, post divestment operation 9% • Annual sales of SEK ~0.7bn, with an
Slide 9: Strong strategic rationale for the separation…
Strong strategic rational for the separation… Two business segments with inherently different logics, incl. Automotive Industrial Rapidly transforming industry, Diversified market exposure, Business dynamics driven by electrification focus on accessibility and speed Larger batches, few variants, Sma
Slide 10: …Unlocking long-term value creation
…Unlocking long-term value creation Establishing two fit-for-purpose independent companies to accelerate growth & profitability Strategic focus on distinct objectives, opportunities & business needs Improved management Enhanced n Tailored Increased Increased focus and end-user capital efficiency res
Slide 11: Niclas Rosenlew, CFO
Niclas Rosenlew, CFO Slide 10 SKF Third-quarter report 2024
Slide 12: Net sales decline mainly driven by lower market demand and negative currency effects
Net sales decline mainly driven by lower market demand and negative currency effects Net sales, SEK bn Percent, year-over-year 25.8 25.8 0.0 % 23.7 23.7 -4.4% -3.6% Q3 Q4 Q1 Q2 Q3 *Organic: volume, price and mix. 2023 2024 Slide 11 SKF Third-quarter report 2024
Slide 13: 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 2 956 2 956 2 821 180 2 821 0 -284 -31 Q3 Q4 Q1 Q2 Q3 2023 2024 *Organic: volume, price and mix. Slide 12 SKF Third-quarter report 2024
Slide 14: Strong cash flow
Strong cash flow Net cash flow from operations, MSEK Net cash flow from operations, MSEK 3 937 3 576 1 165 356 3 576 3 435 -471 2 526 2 152 1 781 Q3 Q4 Q1 Q2 Q3 Operating Non-cash Taxes NWC Operating profit items cash-flow 2023 2024 Q3 2024 Q3 2024 Slide 13 SKF Third-quarter report 2024
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 Q3 Q4 Q1 Q2 Q3 14.9% 14.6% -9.8 -9.3 Whereof Leasing Q3 Q4 Q1 Q2 Q3 2023 2024 *Net debt excluding Post-employment benefits, net Slide 14 SKF Third-quarter report 2024
Slide 16: Outlook and Guidance
Outlook and Guidance Outlook • Q4 2024: A mid-single digit organic sales decline expected, year-over-year • FY 2024: A mid-single digit organic sales decline expected, year-over-year Guidance Q4 2024 • Currency impact on the operating profit is expected to be around SEK 250 million negative compared
Slide 17: Transforming into a more resilient and competitive SKF
Transforming into a more resilient and competitive SKF Diligent strategy execution Continued margin resilience Adjusted operating margin R12 and Organic growth, % • Unlocking value by separating the Automotive business Margin • Strategic portfolio management 13 • Divesting non-core asset within Aero
Slide 18: Q&A
Q&A Slide 17 SKF Third-quarter report 2024
Slide 19: okKF:
okKF: