SKF Capital Markets Day 2020: delivering on our transformation
<p style="text-align: center;"><img title="1604554682987192.jpg" alt="4.jpg" src="/ueditor/php/upload/image/20201105/1604554682987192.jpg"/></p><p>SKF¡¯s virtual Capital Markets Day on 4 November will focus on the transformation of the Group into an even stronger SKF. This includes transformation of SKF¡¯s manufacturing footprint, operational improvements, new business models and technology investments. The Group is also presenting updated long-term targets.</p><p><br/></p><p>Alrik Danielson, President and CEO, says: ¡°During the last few years we have been going through a transformation. Whilst we are far from done, we have made significant progress, not least during the past year. It is now time to take the next steps of our transformation journey.¡±</p><p><br/></p><p>At today¡¯s Capital Markets Day, the following main highlights and updates will be presented:</p><p>Continued transformation of manufacturing, including:</p><p>Increased localization rates: from 50% to 60% in Americas and from 60% to 70% in Asia</p><p>Continued consolidation of factories, in line with the current rate of 4-5 announced factory closures per year</p><p>Realized annualized benefits exceeding SEK 5 billion by 2025</p><p>Successful development of SKF¡¯s fee-based business</p><p>Investments in AI and RecondOil supporting the fee-based customer offer</p><p>Fee- and performance-based contracts now total approximately SEK 1 billion on an annual basis</p><p>SKF¡¯s updated long-term targets:</p><p>Operating margin*: 14%</p><p>Revenue growth**: 5%</p><p>Net debt***/equity: <40%</p><p>ROCE*: 16%</p><p>Dividend payout ratio: 50%</p><p>Carbon Neutral by 2030<br/>* Adjusted for items affecting comparability<br/>** Including acquisitions, adjusted for divestments<br/>*** Excluding pension liabilities</p><p><br/></p><p>Niclas Rosenlew, Senior Vice President and CFO, says: ¡°We are really excited to get the chance to explain our ongoing transformation into an even stronger SKF. Our updated targets reflect that we are in the middle of a transformation journey. We are pleased with the progress made in several areas, at the same time as we know we can improve even further.</p><p><br/></p><p>We have communicated a clear strategy and plan, and the next steps will be about implementation, thereby delivering on our financial and environmental ambitions.¡±</p><p></p>
05 Nov,2020
