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19  October 2011
SKF Nine-month results 2011 Tom Johnstone, President and CEO 19 October 2011
Q3 2011  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],19  October 2011
[object Object],[object Object],[object Object],[object Object],Highlights Q3 2011  19  October 2011
Example of new products ,[object Object],19  October 2011 An upgraded range of SKF Explorer spherical    roller bearings which offers at least twice    the previous life when operating in a   contaminated environment. SKF Solar Linear Actuators designed specifically to meet the solar tracking technical requirements. A new bearing range, mainly developed for industrial fans, textile equipment and conveyors. These energy efficient Y-bearings give a 50% reduction in the bearing frictional torque vs conventional SKF Y-bearings.
19  October 2011 Sales volume  % change y-o-y 2009 2010 2011
19  October 2011 Organic growth in local currencies % change y-o-y 2009 2010 2011
Growth development by geography  Organic growth Q3 2011 vs Q3 2010 19  October 2011 Europe +9.7%  Asia/Pacific +4.9%  Latin America +10.2% Middle East & Africa +0.2%  North America +9.9%
Growth development by geography  Organic growth YTD 2011 vs YTD 2010 19  October 2011 Europe +15.1%  Asia/Pacific +14.0%  Latin America +10.1% Middle East & Africa +5.3%  North America +16.5%
Growth in local currency 19  October 2011 % y-o-y Acquisitions/Divestments Organic growth -19.0% 14.2% 19.2% Long-term target: 8% per annum Total growth 4.8% 14.4% 0.0% 14.2% 1.0% -20.0%
Components in net sales 19  October 2011 Percent y-o-y 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -26.9 -30.8 -24.9 -14.1 5.3 16.6 19.0 16.3 20.1 12.6 6.2 1.4 1.1 1.2 0.4 0.0 0.0 0.0 0.0 5.0 4.4 5.1 7.1 5.6 3.7 0.3 -0.3 -0.5 0.3 0.9 1.3 1.6 2.0 -18.4 -24.1 -20.0 -13.4 5.0 16.1 19.3 17.2 26.4 18.6 13.3 13.6 12.2 6.6 -1.4 -7.7 -5.2 -3.2 -6.2 -10.8 -12.2 -6.3 -4.8 -11.9 -13.4 -14.8 -2.7 10.9 16.1 11.0 15.6 6.4 7.0 Volume  Structure Price / Mix Sales in local currency Currency Net sales
Operating profit 19  October 2011 SEKm  2009 Restructuring and one-time items 2010 2011
Operating margin 19  October 2011 %  2009 Restructuring and one-time items 2010 Long-term target level: 15% 2011
Operating margin   19  October 2011 % 5.7 8.0* Restructuring and one-time items *  Excluding restructuring and one-time items 15.2 Long-term target level: 15% 14.2* 13.8
Operating margin per division 19  October 2011 Industrial Service Automotive % Excluding one-off items (eg. restructuring, impairments, capital gains) 2009 2010 2011
Third quarter 2011 19  October 2011 SEKm 2011 2010 Net sales  16,545 15,465 Operating profit  2,479 2,309 Operating margin, % 15.0 14.9 Profit before taxes  2,345 1,950 Net profit  1,656 1,425 Basic earnings per share, SEK 3.52 3.05 Cash flow, after investments before financing 1,323 1,936
First nine months 2011 19  October 2011 SEKm 2011 2010 Net sales  49,959 45,620 Operating profit  7,606 6,250 Operating margin, % 15.2 13.7 Profit before taxes  7,109 5,501 Net profit  5,019 3,946 Basic earnings per share, SEK 10.72 8.41 Cash flow, after investments before financing 2,995 3,128
Inventories as % of annual sales 19  October 2011 % Long-term target level: 18%  2009 2010 2011
Cash flow,  after investments before financing 19  October 2011 SEKm 2009 2010 Cash out from acquisitions  (SEKm) :  2009 241 2010 6,799 2011 6 2011 *  SEK 798 million, excluding the acquisition  of Lincoln Industrial. *
Return on capital employed 19  October 2011 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. % 9.1 24.0 Long-term target: 27% 25.1
Net debt   (Short-term financial assets minus loans and post-employment benefits) 19  October 2011 SEKm AB SKF,  dividend paid  (SEKm) : 2009 Q2 1,594 2010 Q2 1,594 2011 Q2 2,277 2009 2010 Cash out from acquisitions  (SEKm) :  2009 241 2010 6,799 2011 6 2011
19  October 2011 Debt structure  Maturity years, EURm 396 100 100 ,[object Object],[object Object],130 500 110  0 0 ,[object Object],[object Object],1) 2)
October 2011:  Outlook for the fourth quarter 2011 19  October 2011 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand outlook, regions (based on current assumptions) 19  October 2011 Sequential trends for:  Q3 2011  Q4 2011   Share of net sales 2010 Europe 46% Asia Pacific 27% North America 18% Latin America 6% Total Q4 2011  vs Q4 2010 - + = + =
Demand outlook, divisions (based on current assumptions) 19  October 2011 Sequential trends for Q4 2011 Share of net sales 2010 Industrial 32% Service 36% Automotive 30% Total Q4 2011  vs Q4 2010 + ++ -- =
Sequential volume trend main segments Q4 2011 (based on current assumptions)   19  October 2011 Share of net sales 2010 4% 14% 5% 4% 25% 18% 12% 10% 3% 5% Trucks Cars Energy Railway Industrial distribution Industrial OEM, General+Special Vehicle Service Market Industrial OEM, Heavy + Off-highway Electrical and two-wheeler Aerospace
SKF today – more robust and more diverse  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],19  October 2011
SKF today - prepared for a changing demand picture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],19  October 2011
Guidance for the fourth quarter 2011 ,[object Object],[object Object],[object Object],[object Object],[object Object],19  October 2011 Guidance is approximate and based on current assumptions and exchange rates.
Key focus areas ahead 2011 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],19  October 2011 One SKF and SKF Care as guiding lights
Cautionary statement ,[object Object],[object Object],19  October 2011
19  October 2011

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Skf q3 2011_presentation

  • 1. 19 October 2011
  • 2. SKF Nine-month results 2011 Tom Johnstone, President and CEO 19 October 2011
  • 3.
  • 4.
  • 5.
  • 6. 19 October 2011 Sales volume % change y-o-y 2009 2010 2011
  • 7. 19 October 2011 Organic growth in local currencies % change y-o-y 2009 2010 2011
  • 8. Growth development by geography Organic growth Q3 2011 vs Q3 2010 19 October 2011 Europe +9.7% Asia/Pacific +4.9% Latin America +10.2% Middle East & Africa +0.2% North America +9.9%
  • 9. Growth development by geography Organic growth YTD 2011 vs YTD 2010 19 October 2011 Europe +15.1% Asia/Pacific +14.0% Latin America +10.1% Middle East & Africa +5.3% North America +16.5%
  • 10. Growth in local currency 19 October 2011 % y-o-y Acquisitions/Divestments Organic growth -19.0% 14.2% 19.2% Long-term target: 8% per annum Total growth 4.8% 14.4% 0.0% 14.2% 1.0% -20.0%
  • 11. Components in net sales 19 October 2011 Percent y-o-y 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -26.9 -30.8 -24.9 -14.1 5.3 16.6 19.0 16.3 20.1 12.6 6.2 1.4 1.1 1.2 0.4 0.0 0.0 0.0 0.0 5.0 4.4 5.1 7.1 5.6 3.7 0.3 -0.3 -0.5 0.3 0.9 1.3 1.6 2.0 -18.4 -24.1 -20.0 -13.4 5.0 16.1 19.3 17.2 26.4 18.6 13.3 13.6 12.2 6.6 -1.4 -7.7 -5.2 -3.2 -6.2 -10.8 -12.2 -6.3 -4.8 -11.9 -13.4 -14.8 -2.7 10.9 16.1 11.0 15.6 6.4 7.0 Volume Structure Price / Mix Sales in local currency Currency Net sales
  • 12. Operating profit 19 October 2011 SEKm 2009 Restructuring and one-time items 2010 2011
  • 13. Operating margin 19 October 2011 % 2009 Restructuring and one-time items 2010 Long-term target level: 15% 2011
  • 14. Operating margin 19 October 2011 % 5.7 8.0* Restructuring and one-time items * Excluding restructuring and one-time items 15.2 Long-term target level: 15% 14.2* 13.8
  • 15. Operating margin per division 19 October 2011 Industrial Service Automotive % Excluding one-off items (eg. restructuring, impairments, capital gains) 2009 2010 2011
  • 16. Third quarter 2011 19 October 2011 SEKm 2011 2010 Net sales 16,545 15,465 Operating profit 2,479 2,309 Operating margin, % 15.0 14.9 Profit before taxes 2,345 1,950 Net profit 1,656 1,425 Basic earnings per share, SEK 3.52 3.05 Cash flow, after investments before financing 1,323 1,936
  • 17. First nine months 2011 19 October 2011 SEKm 2011 2010 Net sales 49,959 45,620 Operating profit 7,606 6,250 Operating margin, % 15.2 13.7 Profit before taxes 7,109 5,501 Net profit 5,019 3,946 Basic earnings per share, SEK 10.72 8.41 Cash flow, after investments before financing 2,995 3,128
  • 18. Inventories as % of annual sales 19 October 2011 % Long-term target level: 18% 2009 2010 2011
  • 19. Cash flow, after investments before financing 19 October 2011 SEKm 2009 2010 Cash out from acquisitions (SEKm) : 2009 241 2010 6,799 2011 6 2011 * SEK 798 million, excluding the acquisition of Lincoln Industrial. *
  • 20. Return on capital employed 19 October 2011 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. % 9.1 24.0 Long-term target: 27% 25.1
  • 21. Net debt (Short-term financial assets minus loans and post-employment benefits) 19 October 2011 SEKm AB SKF, dividend paid (SEKm) : 2009 Q2 1,594 2010 Q2 1,594 2011 Q2 2,277 2009 2010 Cash out from acquisitions (SEKm) : 2009 241 2010 6,799 2011 6 2011
  • 22.
  • 23.
  • 24. Demand outlook, regions (based on current assumptions) 19 October 2011 Sequential trends for: Q3 2011 Q4 2011 Share of net sales 2010 Europe 46% Asia Pacific 27% North America 18% Latin America 6% Total Q4 2011 vs Q4 2010 - + = + =
  • 25. Demand outlook, divisions (based on current assumptions) 19 October 2011 Sequential trends for Q4 2011 Share of net sales 2010 Industrial 32% Service 36% Automotive 30% Total Q4 2011 vs Q4 2010 + ++ -- =
  • 26. Sequential volume trend main segments Q4 2011 (based on current assumptions) 19 October 2011 Share of net sales 2010 4% 14% 5% 4% 25% 18% 12% 10% 3% 5% Trucks Cars Energy Railway Industrial distribution Industrial OEM, General+Special Vehicle Service Market Industrial OEM, Heavy + Off-highway Electrical and two-wheeler Aerospace
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. 19 October 2011