SKF Q4 results Alrik Danielson, President and CEO

Transcription

1 SKF Q4 results 2018 Alrik Danielson, President and CEO

2 Q4 excellent result and strong cash flow Net sales of 21,192 M, organic growth 5.0% 5.0% Organic sales growth Operating profit 2,902 M (2,017) Operating margin improved to 13.7% (10.4) Cash flow 4,259 M (1,704) 2,902 M Operating profit Proposed dividend of SEK 6.00 Net sales, SEK 19.5 bn 21.2 bn Operating profit, SEK 2.0 bn 2.9 bn 13.7% Operating margin Q4 Q1 Q2 Q3 Q418 Q4 Q1 Q2 Q3 Q4 18

3 Industrial business performing well; increased volumes in all three main markets, North America, Europe and Asia 8.8% organic growth in Q4 and 9.4% for the full year

4 Automotive; organic sales in Q4 declined due to lower car volumes in Europe and to lower sales in Asia. -3.7% organic growth in Q4 and +2.1% for the full year

5 Improving performance towards our targets in 2018 Targets set in 2016 and valid over a business cycle: Organic growth: 7.1% Target: 5% Operating margin: 12.9% Target: 12% Net debt / equity: 49% Target: <80% Net working capital: 27.8% Target: 25% Return on capital employed: 17.6% Target: 16%

6 Continued sales growth in Asia, North America & Europe Organic growth in local currency Q vs Q Europe +1.5% North America +10.8% Asia/Pacific +8.1% Latin America 0%

7 New investment in automated Aerospace production SKF Aeroengine site in Valenciennes, France Fully automated production line Dedicated to the production of SAFRAN's LEAP engine components

8 Q4 results the details Christian Johansson, CFO

9 Sales development Net sales, SEK bn Percent y-o-y Q4 Q1 Q2 Q3 Q4 Organic Structure Currency Net sales Q4 Q1 Q2 Q3 Q4 18

10 Operating profit SEK bn SEK bn, 12m moving ,5 2 1, ,

11 Operating profit SEKm Divested/ acquired companies Q Currency Organic sales Cost Q impact & manufacturing volumes Operational performance: * development * Impairment of assets & customer settlements -282, restructuring -194

12 Performance by customer group Industrial Operating margin, % 10.2% 12.8% 18.3% Industrial Net sales 15,214 M Organic sales +9% Operating margin 18.3%, (12.8) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q418 Automotive Operating margin, % Automotive Net sales 5,978 M Organic sales -3.6% Operating margin 2.1%, (5.0) 5.0% 4.6% 2.1% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q418

13 SKF Group Q Operating margin, % 10.4% 13.7% Q4 Q1 Q2 Q3 18 Q4 18 Q4 18 Q Financial net Taxes ,603-1,898 Earnings per share, SEK EPS Q4 Q1 Q2 Q3 Q % Operating margin

14 Cash flow after investments before financing* SEKm * After investments before financing (excluding acquisitions and divestments and EU payment in Q ) 2013 and 2014 are restated

15 Net working capital finished goods inventories reduced in the quarter 35 % Total NWC 27.8% Target: 25% Inventories 20.8% Trade receivables 16.1% Trade payables 9.1% 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

16 Net debt/equity ratio continues to improve Net debt, SEK bn Net debt/equity, % 0 160% % Net debt/equity 20% Net debt, excl post empl. Net fin debt Post-empl. benefits 0% benefits/equity % 100% 80% 60% 40% 49% 13%

17 Guidance for 2019* Q1 2019: Financial net: around -200 million Currency impact on the operating profit is expected to be positive by 140 million compared with 2018, based on exchange rates per 31 December, : Tax level: around 28% for 2019, excluding effects from divestments Additions to property, plant and equipment: around 2,800 million for * Guidance is approximate and based on current assumptions and exchange rates.

18 Summary 2018 a record year for SKF Organic growth of 7.1% Record-high sales and operating profit Strong cash flow Proposed dividend of SEK 6.00 Expect to see relatively unchanged volumes in Q1 11,049 M Operating profit 12.9% Operating margin Net sales, SEK 21.2 bn Operating profit, SEK 2.9 bn 19.5 bn 2.0 bn 8,326 M Cash flow Q4 Q1 Q2 Q3 Q418 Q4 Q1 Q2 Q3 Q4 18

19 January 2019: SKF demand outlook Q Demand compared to the first quarter 2018 The demand for SKF s products and services is expected to be relatively unchanged for the Group, including slightly higher demand for Industrial and lower demand for Automotive. Demand is expected to be higher in North America, slightly higher in Asia, relatively unchanged in Latin America and slightly lower in Europe.

20 SKF Q4 results 2018 Q & A

21 Financial calendar Q4 report Roadshow Stockholm Roadshow US Carnegie Capital Goods Seminar 29 January 30 January 4-6 February 7 March Annual Report March 2019 BAML London Conference Annual General Meeting Q1 Report 20 March 28 March 25 April

22 Cautionary statement 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 forward-looking 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; Risk management at SKF" and "Sensitivity analysis.

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