Slide 1: Quarterly presentation Q2 2025
Alt 4 quarterly presentation 18 July 2025 Q2 2025
Slide 2: Ask a question / Legal disclaimer
Ask a question Webcast Telephone Use question tab Press *1 above the slides Legal disclaimer This presentation contains forward-looking statements that reflect SKF’s current expectations on future events and financial and operational development. Words such as “intend”, “anticipate”, “expect”, “may”
Slide 3: Another quarter of margin resilience
Q2 2025 | STRATEGIC HIGHLIGHTS Another quarter of margin resilience • Strong adjusted operating margin despite mixed market Organic growth and adjusted operating margin conditions and FX-headwind • Organic sales growth across regions for Industrial almost 10% 14.0% offset decline in Automotive 12.0%
Slide 4: Margin resilience in mixed market conditions
Q2 2025 | 2025 SUMMARY Margin resilience in mixed market conditions Net sales, SEK bn Adjusted operating margin, % Net cash flow from operations, SEK bn Organic sales –0.2%, year-over-year, driven Adjusted operating margin increased 0.3 pp Net cash flow from operations increased by improved demand i
Slide 5: Varied organic growth across regions and segments
Q2 2025 | SALES BY REGION Varied organic growth across regions and segments Region % of global net sales Net sales, Organic growth, Market highlights SEK bn % • Organic sales growth in Industrial driven by EMEA 43% 9.9 -2.8% Lubrication, Aerospace and Magnetic demand • Continued weak Automotive mark
Slide 6: Industrial business
Share of Group net sales Share of Group adjusted operating profit Q2 2025 | SEGMENT OVERVIEW Industrial business 72% 89% Organic growth 2.4% Net sales and adjusted operating margin • Positive organic growth across all geographic regions, especially in Asia where it was partly timing driven MSEK • So
Slide 7: Automotive business
Share of Group net sales Share of Group adjusted operating profit Q2 2025 | SEGMENT OVERVIEW Automotive business 28% 11% Organic growth -6.2% Net sales and adjusted operating margin • Weak market conditions, particularly in Europe and Americas • Growth in CNEA and ISEA, driven by light vehicles, pri
Slide 8: Continuous adaptation of the organization to ensure operational efficiency
Q2 2025 | STRATEGIC HIGHLIGHTS Continuous adaptation of the organization to ensure operational efficiency… MSEK MSEK +32% Simplified operations and sales organizations 01 - Reshaping support functions and reducing fixed costs 2.7 0.5 2.5 0.4 2.3 0.3 2.1 Increased manufacturing automation +36% 02 - I
Slide 9: Next step - a more competitive Industrial business enabled by the automotive separation
Q2 2025 | STRATEGIC HIGHLIGHTS …Next step - a more competitive Industrial business enabled by the automotive separation • Gross reduction of ~1,700 positions Number of positions 1,200 • ~500 re-hires relating to strategic footprint shift • Mainly staff positions in Europe • Full annual run-rate savi
Slide 10: Aerospace | Executing on the strategic review
Share of Industrial net sales 9% Q2 2025 | STRATEGIC HIGHLIGHTS Aerospace | Executing on the strategic review Portfolio prioritization, including strategic divestments 01 • Focus on Aeroengine and Aerostructure bearings Structural actions • Hanover (sales SEK 0.8bn) - divestment finalized +12% • Elg
Slide 11: Aerospace | Well positioned for the future
Share of Industrial net sales 9% Q2 2025 | STRATEGIC HIGHLIGHTS Aerospace | Well positioned for the future A focused portfolio • Strong, streamlined offering for Aeroengine & Aerostructure aligned with market needs and supported by innovation • Industry leading repair facilities enabling reduced dow
Slide 12: Financials
Financials Susanne Larsson, CFO SKF Second-quarter report 2025 12
Slide 13: Financial summary
Q2 2025 FINANCIALS Financial summary MSEK unless otherwise stated Q2 2024 Q2 2025 Change Elevated IAC from rightsizing and separation Net sales 25,606 23,166 -9.6% • The full amount of the rightsizing program Organic growth, % -6.6 -0.2 (2 BSEK) was charged in Q2 where the majority is reported in CO
Slide 14: Bridge analysis
Q2 2025 | FINANCIALS Bridge analysis Q2 2024 Organic1) Cost Currency Structure Q2 2025 Net sales, MSEK 25,606 -50 -2,294 -96 23,166 Growth, % -0.2 -9.0 -0.4 -9.6 Adjusted operating profit, MSEK 3,324 250 59 -539 -4 3,090 Adjusted operating margin, % 13.0 13.3 Accretion/dilution, p.p. 1.1 0.3 -0.9 0.
Slide 15: Cash flow
Q2 2025 | FINANCIALS Cash flow Net cash flow from operating activities, MSEK Net cash flow from operating activities MSEK MSEK 969 4,500 16,000 4,000 14,000 2 817 3,500 - 506 12,000 1 172 - 118 3,000 10,000 2,500 8,000 2,000 1 300 6,000 1,500 1,000 4,000 500 2,000 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Oper
Slide 16: Balance sheet and return on capital
Q2 2025 | FINANCIALS Balance sheet and return on capital Net debt, and Net debt/equity1) Adjusted ROCE, 12 months rolling MSEK 14,000 50% 18% 12,000 16% 40% 13.9% 10,000 14% 30% 12% 8,000 10% 6,000 20% 8% 4,000 6% 10% 2,000 4% 0 0% 2% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0% 24 25 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Fi
Slide 17: Outlook and guidance
Q2 2025 Outlook and guidance Outlook • Q3 2025: While the global economic development makes the outlook uncertain, we expect organic sales to be relatively unchanged, year-over-year. Guidance Q3 2025 • Currency impact on the operating profit is expected to be around MSEK 500 negative compared to the
Slide 18: Another quarter of margin resilience
Q2 2025 Another quarter of margin resilience 01 02 03 04 Mixed demand Margin resilience Automotive separation Rightsizing of Industrial Sequentially improved Significant FX headwind The pace of separation is ~2.0 BSEK in annual run- demand in Industrial. was more than offset by building momentum rat
Slide 19: Capital Markets Day
Capital Markets Day Tuesday November 11, 2025, Stockholm Registration opens in August/September SKF Second-quarter report 2025 19
Slide 20: Q&A
Q&A
Slide 21: Slide 21