The SKF Group. SKF Investor Relations

Transcription

1 The SKF Group SKF Investor Relations April 2012

2 SKF - A truly global company 1 Established: 1907 Sales 2011: SEK 66,216 million Employees 2011: 46,039 Production sites: SKF presence: Distributors/dealers: around 130 in 32 countries in over 130 countries 15,000 locations Global certificates: ISO OHSAS certification

3 Net sales by customer segment 2011, excl. Lincoln 2 Industrial distribution 26% 13% Cars and light trucks 5% Aerospace 4% 3% Railway Off-highway Commercial transport Vehicle Service Market 10% Special industrial equipment 5% 6% Energy 7% Heavy industry 13% 3% 5% General industry Trucks Two-wheeler and Electrical 2011 organization structure Industrial business

4 SKF 2011 (2002) (1998) 3 (25)(14)(19) (26) (13)(18) (48) (44)(53) (47) (46)(53) Net sales Average number of employees Tangible asset (10) (12) (9) (13) (14) (8) (6) (5) (4) (4) (4) (3) (5) (14)(12) (5) (12)(15) (3) (9) (3) (3) (9) (3) (3) (2) (0) (2) (2) (0) North America Latin America Western Europe Sweden Eastern Europe Middle East and Africa Asia/Pacific % of group total

5 SKF Group operating margin development %

6 SKF Group Vision 5 To equip the world with SKF knowledge

7 17 SKF Solution Factories Edmonton Nordic (Gothenburg) UK Moscow France Germany Italy Istanbul Tianjin Monterrey Mexico Houston Pune Shanghai Taiwan Colombia Opened Planned Brasil IXION Johannesburg

8 SKF Solution Factory 7 Segments & Application Knowledge Platforms & Technology Competence SKF Solution Factory Capabilities Sealing Solutions Mechanical Services Lubrication Solutions Bearing Service Workshop Condition Monitoring Services Remote Monitoring Center MaPro/CoMo Product Repair A & MC Training Center

9 Slab continuous caster metal industry 8 Telescopic actuators for mould adjustment SKF ConRo Top roll line units SKF ConRo Compact roll line units SKF ConRo Low roll line units SKF DryLube Bearings and SNL Housings for roll out table SKF sealed selfaligning bearing system (CARB and spherical roller bearings) and centralized lubrication system for roll lines SKF Caster Analyst System for roll lines

10 Wheel-loader Construction 9 Central gear Hybrid pinion units Chassis lubrication Centralized lubrication systems Wheel end Integrated smart wheel bearing units with sensors SKF Mudblock cassette seals Motor hood Electromechanical actuators

11 Wind turbine - Energy 10 New CRB-design with extra-high carrying capacity for wind-gearboxes. New pitch bearing design with improved corrosion protection SKF WindCon 3.0/Webcon Intranet supervised condition monitoring DRTRB-unit Nautilus with segmented cage for minimized friction XL Hybrid bearings with ceramic balls for superior insulation Automatic centralized lubrication kits for reduced maintenance cost

12 SKF s environmentally positive customer solutions 11 SKF s solutions which realize significant environmental benefits Designed for environment E2-30% less energy compared to a standard bearing Applied for environment Stop-start system SKF sensor bearing Up to 15% better fuel economy of the car A solution that is primarily designed to improve environmental performance by itself A solution that enables improved environmental performance in a specific application

13 SKF energy efficient (E2) bearings 12 China India Peru Indonesia Conveyors used in mining industry. 130,000 E2 bearing Sangam Group Industria Textil Piura 60,000 E2 deep groove ball bearing Leuwijaya Textile 30,000 E2 bearing potential 325,000 for 3 different customers

14 What is SKF knowledge? 13

15 SKF s platforms 14 Bearings and units

16 SKF s platforms 15 Seals

17 SKF s platforms 16 Mechatronics

18 SKF s platforms 17 Lubrication systems

19 SKF s platforms 18 Services

20 Acquisition Identifying gaps and opportunities in all platforms 19 Bearings and units Seals Services Lubrication systems Mechatronics Products SNFA (2006) Economos (2006) Safematic (2006) ABBA (2007) GLO (2008) Macrotech (2006) Macrotech (2009) Jaeger (2005) S2M (2007) Baker (2007) Technologies Vogel (2004) Geographies QPM (2008) PMCI (2007) Lincoln Industrial (2010) ALS (2007) TCM (2003) Scandrive (2003) PB&A (2006) Sommers (2005) Monitek (2006) Cirval (2008) Segments Peer (2008)

21 SKF First-quarter results 2012 Tom Johnstone, President and CEO

22 Highlights Q Acquisition: SKF signed an agreement to acquire the US-based General Bearing Corporation for around USD 125 million on a cash and debt free basis. New businesses: SKF received an order worth around SEK 350 million from Vestas for the delivery of main shaft solutions to the Vestas V MW turbine. SKF was awarded two contracts totaling around SEK 50 million from Siemens Rail Systems for railway projects in Europe. SKF will deliver axle boxes and wheel set bearing units. SKF received orders from one major metal industry customer for SKF ConRo Compacts worth EUR 1.8 million.. SKF signed a three-year contract with Scania. The contract includes bearings for truck wheel end units and transmissions to Scania production facilities in Brazil.

23 Highlights Q SKF: inaugurated two SKF University Technology Centres: Chalmers University of Technology, for sustainability and environment Luleå University of Technology, for condition monitoring and asset management Foto: Robin Olsson Foto: Karl William held the SKF North American Distributor convention in Florida, and participated in a maintenance fair in Sweden. awarded the 140,000 certificate from the SKF Distributor College launched a range of informational and calculation-focused apps for iphone and ipad.

24 Examples of new products launched in Servo Actuator for industrial applications A hand-held, 18-volt, lithium-ion grease gun Next generation SNL, SE housings SKF Solar Hub SKF Thruster Monitoring SKF Compact Wire Steering Bearing Integrated monotube seal SKF Nautilus SKF Speed Sensor Unit SKF Bus Door Actuator range extensions

25 SKF Group Q Financial performance Q Q Net sales, SEKm 16,931 16,702 Operating profit, SEKm 2,140 2,504 Operating margin, % Profit before tax, SEKm 1,981 2,318 Cash flow, SEKm Organic sales growth in local currency: SKF Group: +1.1% Europe: -1.2% Industrial market, Strategic Industries: +2.5% North America: +14.7% Industrial market, Regional Sales and Service: +3.0% Asia: -8.1% Automotive: -4.2% Latin America: +11.1% Key points Sales were relatively unchanged y-o-y Manufacturing was significantly lower y-o-y Inventories were reduced to 20.5% of sales

26 Organic sales growth in local currency 25 % change y-o-y

27 Sales volume 26 % change y-o-y

28 Growth development by geography Organic growth in local currency Q vs Q Europe -1.2% North America +14.7% Asia/Pacific -8.1% Latin America +11.1% Middle East & Africa +2.5%

29 Growth in local currency 28 Long-term target: 8% per annum Total growth 14.2% 16.3% 1.0% % y-o-y % 11.5% 5 4.8% 0 0.0% 1.1% -0.1% Q Organic growth Acquisitions/Divestments

30 Components in net sales 29 Percent y-o-y Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Volume Structure Price/mix Sales in local currency Currency Net sales

31 Operating profit 30 SEKm Restructuring and one-time items

32 Operating margin 31 % 16 Long-term target level: 15% Restructuring and one-time items

33 Operating margin 32 % * 14.7* Long-term target level: 15% Q Restructuring and one-time items * Excluding restructuring and one-time items

34 Operating margin per business area 33 % Regional Sales and Service Strategic Industries Automotive 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

35 First quarter SEKm Net sales 16,931 16,702 Operating profit 2,140 2,504 Operating margin, % Profit before taxes 1,981 2,318 Net profit 1,341 1,620 Basic earnings per share, SEK Cash flow, after investments before financing

36 Inventories as % of annual sales 35 % Long-term target level: 18%

37 Cash flow, after investments before financing 36 SEKm * * SEK 798 million, excluding SEK 6,799 million for the acquisition of Lincoln.

38 Return on capital employed 37 Long-term target: 27% % Q ROCE: Operating profit plus interest income, as a percentage of twelve months rolling average of total assets less the average of non-interest bearing liabilities.

39 Net debt 38 SEKm AB SKF, dividend paid (SEKm): 2010 Q2 1, Q2 2,277 Cash out from acquisitions (SEKm): , Net debt: Loans and net provisions for postemployment benefits less short-term financial assets excluding derivatives.

40 Debt structure 39 Maturity years, EURm Credit facilities: EUR 500 million 2014 SEK 3,000 million 2017 No financial covenants nor material adverse change clause

41 Dividend proposal 40 AB SKF s Board proposes to the Annual General Meeting an increase of the dividend by 10%, giving a dividend of SEK 5.50 (5.00) per share. The Annual General Meeting will be held on 25 April.

42 April 2012: Outlook for the second quarter Demand compared to the second quarter last year The demand for SKF s products and services is expected to be slightly higher for the Group. It is expected to be relatively unchanged in Europe and Asia, and significantly higher in North America and Latin America. The demand is expected to be slightly higher for Strategic Industries and Regional Sales and Service and relatively unchanged for the Automotive. Demand compared to the first quarter 2012 The demand for SKF s products and services is expected to be slightly higher for the Group. It is expected to be relatively unchanged in Europe, slightly higher in North America and higher in Asia and Latin America. The demand is expected to be slightly higher for all business areas. Manufacturing level The manufacturing level is expected to be lower year on year but higher compared to the first quarter.

43 Demand outlook Q2 2012, regions (based on current assumptions) 42 Share of net sales 2011 Europe 46% Asia Pacific 26% North America 19% Latin America 6% Total Sequential trends for: Q Q Q vs Q /- +/

44 Demand outlook Q2 2012, business areas (based on current assumptions) 43 Share of net sales 2011 Strategic Industries Regional Sales and Service 31% 39% Automotive 27% Total Sequential trends for Q Q vs Q /- +

45 Sequential volume trend Q2 2012, main segments (based on current assumptions) Share of net sales 2011* 5% Trucks 44 26% 18% 13% 10% 10% 6% 3% 5% 4% Industrial Distribution Industrial OEM, General + Special Cars Vehicle Service Market Industrial OEM, Heavy + Off-highway Energy Two-wheelers and Electrical Aerospace Railway * excluding Lincoln

46 Guidance for the second quarter Tax level: around 30% Financial net for the second quarter: Around SEK -175 million Exchange rates on operating profit versus 2011 Q2: SEK 125 million Full year: SEK 200 million Additions to PPE: Around SEK 2.0 billion for 2012 Guidance is approximate and based on current assumptions and exchange rates.

47 Key focus areas ahead Managing the uncertain and different demand environment -regions and segments Profit and cash flow - inventory management Initiatives and actions to support long-term financial targets Continue the integration of Lincoln Business Excellence and competence development Implement the new organization for the Industrial market One SKF and SKF Care as guiding lights

48 Cautionary statement 47 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 forwardlooking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors mentioned in SKF's latest annual report (available on under the Administration Report; Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis.

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50 Welcome to the IR website > Investors 49 Investor Relations function: Head: Marita Björk Tel: Mobile: Investor Relations: Anna Alte Tel: Mobile: Event coordinator and assistant: Helena Karlsson Tel: Mobile: