Skf Ab Class A · OMXSTO:SKF_A

Skf Ab Class A — Q3 2003 Earnings Presentation

22 slides from Skf Ab Class A's earnings presentation, 2003

  1. Slide 1: The SKF Group Nine-month result 2003

    The SKF Group Nine-month result 2003 Tom Johnstone President and CEO

  2. Slide 2: Key issues Q3, 2003

    SKF Group Key issues Q3, 2003 Solid financial performance - good operating margin - price/mix up - strong cash flow - inventories down Steps taken to support the long-term target

  3. Slide 3: Third quarter 2003

    SKF Group Third quarter 2003 MSEK 2003 2002 Net sales 10 059 10 047 0.1% Operating profit 841 950 -11.5% Operating margin 8.4% 9.5% Profit before taxes 697 877 -20.5% Net profit 503 582 Earnings per share, SEK 4.42 5.11 -13.5% Cash flow* 982 1 368 *after investments before financing

  4. Slide 4: Nine-month result

    SKF Group Nine-month result MSEK 2003 2002 Net sales 31 132 31 765 -2.0% Operating profit 2 730 2 901 -5.9% Operating margin 8.8% 9.1% Profit before taxes 2 314 2 563 -9.7% Net profit 1 634 1 747 Earnings per share, SEK 14.35 15.33 -6.4% Cash flow* 1 539 2 085 *after investments before financing

  5. Slide 5: Profit before taxes

    SKF Group Profit before taxes MSEK 1 000 900 800 700 600 500 400 300 200 100 0 2001 2002 2003

  6. Slide 6: Earnings per share

    SKF Group Earnings per share SEK 7 6 5 4 3 2 1 0 2001 2002 2003

  7. Slide 7: Net sales

    SKF Group Net sales MSEK 12 000 10 000 8 000 6 000 4 000 2 000 0 2001 2002 2003

  8. Slide 8: Net sales development per quarter

    SKF Group Net sales development per quarter Percent 2001 2002 2003 y-o-y Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Structure 0.4 0.4 1.0 1.4 1.9 2.0 1.4 0.7 0.1 0.2 Volume - 2.7 - 3.2 - 3.8 - 7.3 -0.5 3.3 3.9 6.2 3.2 4.2 Price / Mix 1.9 1.6 2.1 1.5 1.4 1.2 1.7 1.2 0.6 1.2 Sales in local - 0.4 - 1.2 - 0.7 - 4.4

  9. Slide 9: Sales in local currency

    SKF Group Sales in local currency % change y-o-y 10 8 6 4 2 0 -2 -4 -6 2001 2002 2003

  10. Slide 10: Operating margin

    SKF Group Operating margin % 11 10 9 8 7 6 5 4 3 2 1 0 2001 2002 2003

  11. Slide 11: Operating margin per division

    SKF Group Operating margin per division % 14 12 10 Service Industrial 8 6 Electrical 4 2 Automotive 0 Aero and Steel -2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2001 2002 2003

  12. Slide 12: Accumulated change in the number of employees

    SKF Group Accumulated change in the number of employees Employees 5 000 4 000 3 000 acquisitions 2 000 1 000 0 -1 000 -2 000 -3 000 capacity adjustment -4 000 and restructuring -5 000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2000 2001 2002 2003

  13. Slide 13: Cash flow after investments before financing

    SKF Group Cash flow after investments before financing MSEK 1 600 1 400 1 200 1 000 800 600 400 200 0 -200 2001 2002 2003

  14. Slide 14: Inventories as % of annual sales

    SKF Group Inventories as % of annual sales % Target 20% 25 24 23 22 21 20 19 18 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 2003

  15. Slide 15: Additions to tangible assets

    SKF Group Additions to tangible assets Depreciation according to plan MSEK 2 000 1 500 1 000 500 0 YTD Sept 2001 2002 2003

  16. Slide 16: Net cash

    SKF Group MSEK Net cash* 4000 Dividend paid: 2003 Q2, MSEK 911 3000 2002 Q2, MSEK 683 2001 Q2, MSEK 598 2000 1000 0 -1000 -2000 2001 2002 2003 * Short-term financial assets - Loans

  17. Slide 17: Target

    SKF Group Target 10 % operating margin level 10 BSEK additional annual net sales To be reached within the 2005/2006 time period

  18. Slide 18: Focused areas

    SKF Group Focused areas: Drive operational excellence Grow new markets and segments Introduce new products and solutions Develop our people and competencies

  19. Slide 19: Volume trend by region

    SKF Group Volume trend External sales 2002 July 2003 Oct 2003 Europe 55% North America 26% Asia Pacific 13% Latin America 4% Total

  20. Slide 20: Volume trend by division

    SKF Group Volume trend External sales 2002 July 2003 Oct 2003 Industrial 23% Automotive 32% Electrical 4% Service 32% Aerospace 5%

  21. Slide 21: Outlook October 2003

    SKF Group Outlook October 2003 The market demand for the Group's products and services is expected to slightly improve during the fourth quarter, with demand in Europe unchanged, higher in North America and significantly higher in Asia. Manufacturing will be increased in line with market demand to m

  22. Slide 22: Cautionary Statement

    SKF Group Cautionary Statement This report 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 expe

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