Day 13 – June 6 – WBL 6.4-6.6 6.4 Elastic and Inelastic Collisions PC141 Intersession 2013Slide 1.
The SKF Group SKF Investor Relations July 2013. © SKF Group16 July 2013Slide 1 SKF - A truly global...
-
Upload
eleanore-heath -
Category
Documents
-
view
217 -
download
0
Transcript of The SKF Group SKF Investor Relations July 2013. © SKF Group16 July 2013Slide 1 SKF - A truly global...
The SKF Group
SKF Investor Relations
July 2013
16 July 2013 Slide 2© SKF Group
SKF - A truly global company
Established: 1907
Sales 2012: SEK 64,575 million
Employees 2012: 46,775
Production sites: around 140 in 28 countries
SKF presence: in over 130 countries
Distributors/dealers: 15,000 locations
Global certificates: ISO 14001
OHSAS 18001 certification
16 July 2013 Slide 3© SKF Group
Net sales by customer segment* 2012
* Previously published shares have been restated in February 2013
Aerospace
Railway
Off-highway
Trucks
Two-wheelers and Electrical
Industrial, general
Cars and light trucks
Industrial, heavy and
special
Vehicle Service Market
Industrial distribution
Energy
6%
4%
4%
5%
12%9%
6%
10%
29%
2%
6%
4%
4%
5%
12%9%
6%
10%
29%
2%
13%
16 July 2013 Slide 4© SKF Group
Net sales 2012, Geographical distribution*
Asia/Pacific
Latin America
North America
Middle East & Africa
Western Europe
Eastern Europe
Sweden
7%
3%
35%
5%
3%
24%23%
* Previously published shares have been restated in February 2013
16 July 2013 Slide 5© SKF Group
7
35
3
8 9
1
8 7
10
6
0
24
35
23
26
7
12
37
30
39
North America
Latin America
WesternEurope
Eastern Europe
Middle East and Africa
Asia/Pacific
Net salesAverage number of employees Tangible asset
% of group total SKF 2012
(18)
(8)(13)
(26)(13)
(14)
(2002) (1998)
(25)(14)(19)
(10)(12) (9)
Sweden
(4) (4) (3)
(5)(12)(15)(3) (9) (3)
(2) (2) (0)
(47)(46)(53)
(6) (5) (4)
(5)(14)(12)(3) (9) (3)
(3) (2) (0)
(48)(44)(53)
16 July 2013 Slide 6© SKF Group
Operating margin
%
16 July 2013 Slide 7© SKF Group
Return on capital employed
%
16 July 2013 Slide 8© SKF Group
Growth in local currencies
%
16 July 2013 Slide 9© SKF Group
Long-term financial targets
27%Return on
capital employed
8%Changes in sales in local currency,
incl. structure
15%Operating
margin, level
-20
-15
-10
-5
0
5
10
15
20
0
5
10
15
05
1015202530
07 08 09 10 11 12
JUN1
3
16 July 2013 Slide 10© SKF Group
SKF’s priorities
Sustainable profitable growth•Expand the platform concept•Exploit the asset life cycle approach•Develop new products and grow SKF BeyondZero portfolio•Extend and grow second brands•Acquisitions
Capital efficiency•Fixed cost reduction•Working capital efficiency
Cost reduction•Consolidation of manufacturing•Optimization and productivity improvements•Reduction in purchasing costs
Investments & Innovation •New and existing facilities•Research and development
16 July 2013 Slide 11© SKF Group
To equip the worldwith SKF knowledge
SKF Group Vision
16 July 2013 Slide 12© SKF Group
SKF BeyondZero
• SKF launched the BeyondZeroTM portfolio with products and solutions, which will both improve energy efficiency and reduce the environmental impact.
• SKF revised targets for its climate strategy and also partnered with the WWF in their Climate Savers Programme.
SKF’s climate strategy targets:
• Increase revenue from SKF BeyondZero portfolio from SEK 2.5 bn to SEK 10 bn by 2016
• Reduce total annual energy use by 5% below the 2006 level by 2016
• Reduce energy use per production output by 5% y-o-y from 2012 to 2016
• Reduce CO2 emissions per tonne-kilometre by 30% 2016 vs 2011 for transports managed by SKF Logistics Services
• Major suppliers certified according to ISO 50001 by 2016
16 July 2013 Slide 13© SKF Group
Opened
Planned
Tianjin
Taiwan
Shanghai
Pune
Istanbul
JohannesburgBrasil “IXION”
Colombia
Moscow
HoustonMonterreyMexico
Edmonton
Nordic (Gothenburg)
UK
Germany
Italy
France
Perth
Rumania
Cleveland Spain
Poland
23 SKF Solution Factories 2013
16 July 2013 Slide 14© SKF Group
SKF Solution Factory
Segments & Application KnowledgePlatforms & Technology Competence
Capabilities
Sealing Solutions Mechanical Services Lubrication Solutions
Training Center
Bearing Service WorkshopCondition Monitoring ServicesRemote Monitoring Center
MaPro/CoMo Product Repair A & MC
SKFSolution Factory
16 July 2013 Slide 15© SKF Group
Slab continuous caster – metal industry
Telescopic actuators for mould adjustment
SKF DryLube Bearings and SNL Housings for roll out table
SKF ConRo Top roll line units
SKF ConRo Low roll line units
SKF sealed self-aligning bearing system (CARB and spherical roller bearings) and centralized lubrication system for roll lines
SKF ConRo Compact roll line units
SKF Caster Analyst System for roll lines
16 July 2013 Slide 16© SKF Group
Wheel-loader – Construction
Central gearHybrid pinion units
Wheel end• Integrated smart wheel bearing units with sensors• SKF Mudblock cassette seals
Motor hoodElectromechanical actuators
Chassis lubricationCentralized lubrication systems
16 July 2013 Slide 17© SKF Group
New pitch bearingdesign with improvedcorrosion protection
DRTRB-unit SKF Nautilus with segmented cagefor minimized friction
New CRB-design withextra-high carrying capacityfor wind-gearboxes.
XL Hybrid bearingswith ceramic ballsfor superior insulation
SKF WindCon 3.0/WebconIntranet supervisedcondition monitoring
Automatic centralizedlubrication kits for reduced maintenance cost
Wind turbine - Energy
16 July 2013 Slide 18© SKF Group
SKF’s environmentally positive customer solutions
Designed for environment
Designed for environment
A solution that is primarily designed to improve environmental performance by itself
E2 - 30% less energy compared to a standard bearing
SKF’s solutions which realize significant environmental benefits
Applied for environment
Applied for environment
A solution that enables improved environmental performance in a specific application
SKF sensor bearing
Stop-start system
Up to 15% better fuel economy of the car
16 July 2013 Slide 19© SKF Group
SKF energy efficient (E2) bearings
PeruIndustria Textil Piura• 60,000 E2 deep
groove ball bearing
IndiaSangam Group
ChinaConveyors used in mining industry. 130,000 E2 bearing
IndonesiaLeuwijaya Textile• 30,000 E2 bearing
• potential 325,000 for 3 different customers
16 July 2013 Slide 20© SKF Group
What is SKF knowledge?
16 July 2013 Slide 21© SKF Group
SKF technology platforms
Bearingsand units
16 July 2013 Slide 22© SKF Group
SKF technology platforms
Seals
16 July 2013 Slide 23© SKF Group
SKF technology platforms
Mechatronics
16 July 2013 Slide 24© SKF Group
SKF technology platforms
Lubrication systems
16 July 2013 Slide 25© SKF Group
SKF technology platforms
Services
16 July 2013 Slide 26© SKF Group
Acquisition 2003-2013Identifying gaps and opportunities in all platforms
Products
Technologies
Geographies
Industries
SNFA (2006)
S2M (2007)
QPM (2008)
Economos (2006)
Macrotech (2006)
Macrotech (2009)
Baker (2007)
PMCI (2007)
PB&A (2006)
Monitek (2006)
Safematic (2006)
Vogel (2004)
ALS (2007)
Sommers (2005)
ABBA (2007)
Jaeger (2005)
Peer (2008)
GLO (2008)
TCM (2003)
Scandrive (2003)
Cirval (2008)
Lincoln Industrial (2010)
GBC (2012)
SealsBearingsand units
Lubrication systemsServices Mechatronics
BVI (2013)
SKF Half-year results 2013Tom Johnstone, President and CEO
16 July 2013 Slide 28© SKF Group
New business
• 10-year contract worth SEK 900 million with Turbomeca
• service contracts worth SEK 200 million in Latin America
• contract for wheel hub bearing units (HBU3) to Volvo Car Corporation
Two new SKF Solution Factories Inaugurated in Madrid, Spain and Katowice, Poland
Divestment, after quarter end
SKF divested its metallic rods business including the operations at the SKF sites in St. Vallier sur Rhône, France and Monroe, Washington, USA.
Highlights Q2 2013
Katowice, Poland Madrid, Spain
Thrust main shaft bearing, one of the bearings for the ARRANO Engine of TURBOMECA
16 July 2013 Slide 29© SKF Group
Highlights Q2 2013
Research programme
SKF and INSA Lyon started a research programme to study the behavior of lubricants under extreme conditions for aerospace.
SKF Windfarm Management Conference
SKF’s eighth SKF Windfarm Management Conference was held in Warsaw, Poland.
Asset Management ConferenceSKF hosted an Asset Management Conference in Dallas, USA with more than 160 customers.
SKF Distributor College awarded its 180,000th certificate.
16 July 2013 Slide 30© SKF Group
New products - examples
SKF Steering boot kits for cars and light trucks.
SKF Telescopic pillars series CPMA and CPMB for medical equipment.
16 July 2013 Slide 31© SKF Group
SKF Restructuring programme – costs and expected savings
Restructuring activities launched in:
SEKm Q4 2012 Q1 2013 Q2 2013 Total
One-off costs 200 250 190 640
Annual savings when fully implemented 150 100 80 330
The savings for the second half year 2013 will be around SEK 150 million, evenly split between the third and the fourth quarter.
16 July 2013 Slide 32© SKF Group
SKF Group – Q2 2013
Financial performance 2013 2012
Net sales, SEKm 16,392 17,174Operating profit, SEKm 1,837 2,049Operating margin, % 11.2 11.9Operating margin excl. restructuring,% 12.4 12.7Profit before tax, SEKm 1,627 1,774Cash flow, SEKm 1,147 686
Organic sales growth in local currency:
SKF Group: -2.2%Strategic Industries: -7.6% Regional Sales and Service: -4.8% Automotive: 7.7%
Key points
Sales volumes down by -1.6% y-o-yManufacturing relatively unchanged compared to last yearInventories 21.6% of sales
Europe: -4%North America: -1%Asia: -4%Latin America: 14%
16 July 2013 Slide 33© SKF Group
Organic sales growth in local currency
-10
-5
0
5
10
15
20
25
20132011 2012
% change y-o-y
16 July 2013 Slide 34© SKF Group
Europe-4%
Asia/Pacific -4%
Latin America
14%Middle East
& Africa -3%
NorthAmerica
-1%
Growth development by geography Organic growth in local currency Q2 2013 vs Q2 2012
16 July 2013 Slide 35© SKF Group
Europe-7%
Asia/Pacific -5%
Latin America
11%Middle East
& Africa -4%
NorthAmerica
-6%
Growth development by geography Organic growth in local currency YTD 2013 vs YTD 2012
16 July 2013 Slide 36© SKF Group
Components in net sales
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20.1 12.6 6.2 0.0 -0.8 -2.8 -5.0 -5.9 -8.7 -1.6
5.0 4.4 5.1 4.8 -0.1 0.0 0.8 1.0 1.5 2.6
1.3 1.6 2.0 2.8 1.9 2.0 0.5 0.7 0.7 -0.6
26.4 18.6 13.3 7.6 1.0 -0.8 -3.7 -4.2 -6.5 0.4
-10.8 -12.2 -6.3 -2.1 0.4 3.6 -2.7 -3.6 -4.0 -5.0
15.6 6.4 7.0 5.5 1.4 2.8 -6.4 -7.8 -10.5 -4.6
Percent y-o-y
Volume
Structure
Price/mix
Sales in local currency
Currency
Net sales
2011 2012 2013
16 July 2013 Slide 37© SKF Group
-10
-5
0
5
10
15
20
2011 2012 YTD 2013
Growth in local currency, including structure
% y-o-y
Structure in 2011: 4.8%Structure in 2012: 0.4%Structure in YTD 2013: 2.0%
-3.1%
16.3%
-2.1%
16 July 2013 Slide 38© SKF Group
Operating profit
0
300
600
900
1 200
1 500
1 800
2 100
2 400
2 700
SEKm
2011
One-time items
2012 2013
16 July 2013 Slide 39© SKF Group
%
0
2
4
6
8
10
12
14
16
2011
One-time items
2012 2013
Operating margin
16 July 2013 Slide 40© SKF Group
0
2
4
6
8
10
12
14
16
2011 2012 YTD 2013
%
One-time items * Excluding one-time items
14.7*
11.9*
10.5
14.5 12.0*
Operating margin
11.4
16 July 2013 Slide 41© SKF Group
-3
0
3
6
9
12
15
18
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Operating margin per business area
Strategic Industries
Regional Sales and Service
Automotive
%
2011 2012 2013
Excluding one-off items(eg. restructuring, impairments, capital gains)
16 July 2013 Slide 42© SKF Group
18
19
20
21
22
23
24
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Inventories as % of annual sales
%
2011 2012 2013
16 July 2013 Slide 43© SKF Group
Return on capital employed
0
5
10
15
20
25
30
2011 2012 YTD 2013
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.
%
16.213.8
23.617.2*
15.3*
23.9*
One-off costs
* Excluding one-off costs
16 July 2013 Slide 44© SKF Group
Cash flow, after investments before financing
-1 000
-500
0
500
1 000
1 500
2 000
2 500SEKm
2011 2012 2013
* SEK 1,707 million, excluding acquisitions and divestments.
** SEK -69 million, excluding acquisitions and divestments.
*
**
16 July 2013 Slide 45© SKF Group
Net debt
-20 000
-18 000
-16 000
-14 000
-12 000
-10 000
-8 000
-6 000
-4 000
-2 000
0
SEKm
AB SKF, dividend paid (SEKm):2011 Q2 2,2772012 Q2 2,5042013 Q2 2,530
2011 2012 2013
Net debt: Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives.
Cash out fromacquisitions (SEKm):
2012 Q3 8292013 Q1 823
16 July 2013 Slide 46© SKF Group
0
100
200
300
400
500
600
2013 2014 2015 2016 2017 2018 2019 2020
EURm
265
100100100
500
110
500
• Available credit facilities:EUR 500 million 2017 SEK 3,000 million 2017
• No financial covenants nor material adverse change clause
Debt structure, maturity years
100
16 July 2013 Slide 47© SKF Group
SEKm 2013 2012
Net sales 16,392 17,174
Operating profit 1,837 2,049
Operating margin, % 11.2 11.9
Operating margin excl. one-offs, % 12.4 12.7
Profit before taxes 1,627 1,774
Net profit 1,104 1,244
Basic earnings per share, SEK 2.36 2.63
Cash flow, after investments before financing 1,147 686
Second quarter 2013
16 July 2013 Slide 48© SKF Group
SEKm 2013 2012
Net sales 31,544 34,105
Operating profit 3,317 4,185
Operating margin, % 10.5 12.3
Operating margin excl. one-offs, % 11.9 12.7
Profit before taxes 2,864 3,730
Net profit 1,922 2,570
Basic earnings per share, SEK 4.10 5.44
Cash flow, after investments before financing 255* 1,382*
Half year 2013
* excluding acquisitions and divestments, SEK 1,078 million (1,401).
16 July 2013 Slide 49© SKF Group
July 2013: SKF demand outlook Q3 2013
Demand compared to the third quarter 2012 The demand for SKF’s products and services is expected to be slightly higher for the Group, Asia and North America as well as for all the business areas. It is expected to be relatively unchanged for Europe and higher for Latin America.
Demand compared to the second quarter 2013 The demand for SKF’s products and services is expected to be relatively unchanged for the Group, Europe, Asia and North America as well as for all the business areas. It is expected to be slightly higher for Latin America.
Manufacturing Manufacturing is expected to be slightly higher year over year and relatively unchanged compared to the second quarter.
16 July 2013 Slide 50© SKF Group
Share of net sales2012
Europe 43%
Asia Pacific 24%
North America 23%
Latin America 7%
Total
Q3 2013 vs Q3 2012
+/-
+
+
++
+
Sequential trend for Q3 2013
SKF demand outlook Q3 2013, regions
16 July 2013 Slide 51© SKF Group
Sequential trend for Q3 2013
Share of net sales2012
Strategic Industries
31%
Regional Sales and Service
39%
Automotive 27%
Total
Q3 2013 vs Q3 2012
+
+
+
+
SKF demand outlook Q3 2013, business areas
16 July 2013 Slide 52© SKF Group
6%
6%
5%
29%
13%
13%
12%
10%
4%
2%
Aerospace
Energy
Trucks
Industrial distribution
Industrial, heavy, special and off-highway
Cars and light vehicles
Industrial, general
Vehicle after market
Railway
Two-wheelers and electrical
Share of net sales 2012
SKF sequential volume trend Q3 2013, main segments
16 July 2013 Slide 53© SKF Group
Guidance for the third quarter 2013*
• Tax level: around 30%
• Financial net for the third quarter:Around SEK -200 million
• Currency impact on operating profit versus 2012Q3: SEK -100 millionFull year: SEK -450 million
• Additions to PPE: Around SEK 1.7 billion for 2013
* Guidance is approximate and based on current assumptions and exchange rates
16 July 2013 Slide 54© SKF Group
Key focus areas 2013
• Managing the uncertain and different demand environment
- Profit and cash flow
• Initiatives and actions to support long-term financial targets - New factories in Mysore and Bengaluru in India
- New warehouse in Shanghai, China
- SKF Campus in Shanghai, China, including:‣ New factory for automotive‣ Global Technical Centre China‣ SKF Solution Factory‣ SKF College
- Integration of new acquisitions, GBC and BVI
- Cost reduction and efficiency programme
- New IT systems
• Business Excellence and competence development
One SKF and SKF Care as guiding lights
16 July 2013 Slide 55© SKF Group
Cost reduction – specific programme 2012-2015
Main activities:
• Consolidation of manufacturing- merger between sites- transfer to faster growing markets with more local production
• Optimization and productivity improvements- in the manufacturing and demand chain processes- in administration and support functions
• Reduction in purchasing cost- mainly through standardization and rationalization
of the supplier base.
Reduction of annual cost by SEK 3 billion by the end of 2015
- Total cost for the programme around SEK 1.5 billion
- 2,500 people impacted,
16 July 2013 Slide 56© SKF Group
SKF’s priorities
Sustainable profitable growth• Expand the platform concept• Exploit the asset life cycle approach• Develop new products and grow SKF BeyondZero portfolio• Extend and grow second brands• Acquisitions
Capital efficiency• Fixed cost reduction• Working capital efficiency
Cost reduction• Consolidation of manufacturing• Optimization and productivity improvements• Reduction in purchasing costs
Investments & Innovation • New and existing facilities• Research and development
16 July 2013 Slide 57© SKF Group
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 www.skf.com) under the Administration Report; “Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis”.
16 July 2013 Slide 58© SKF Group
16 July 2013 Slide 59© SKF Group
Welcome to the IR website – www.skf.com > Investors
Investor Relations function:
Head:Marita BjörkTel: +46 31 3371994Mobile: +46 705 181994E-mail: [email protected]
Investor Relations:Anna AlteTel: +46 31 3371988Mobile: +46 705 271988E-mail: [email protected]
Event and road shows coordinator:Helena KarlssonTel: +46 31 3372142Mobile: +46 705 642142E-mail: [email protected]