Kvartalsrapport Q1 2023

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===== SIDA 1 =====

First-quarter
report 2023
 27 April 2023

===== SIDA 2 =====

0
5
10
15
0
10
20
30
40
% % 
6.5
0
5
10
15
% 
13.3 13.1
10.5 8.5
 Thousand ton C0 2 e
Adjusted operating margin
11.0 9.7 10.1 23 22 22 2419
0
5
10
15
20
% 
12.6 12.6 13.015.3 13.7
5.4
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23
10.0
0
200
400
600
800
20222021202020192018
491 419 380 368 327
Q1 2023
• Net sales of SEK 26,549 million (22,942)  .
• Organic growth 10.1% (6.5%).
• Adjusted operating profit of SEK 3,478 million (3,058).
• Operating profit SEK 3,379 million (2,953).
•  Adjusted operating margin 13.1% (13.3%).  
- Industrial 16.9%  (16.8%).  
- Automotive 3.6%  (4.4%).
• Operating margin 12.7% (12.9%).  
- Industrial 16.5% (16.3%).  
- Automotive 3.2% (4.2%).
• Net cash flow from operations SEK 2,747 million (-271). 
• Basic earnings per share SEK 4.55 (4.36).  
ROCE1)
TARGET 16%
Net zero by 2030 4) 
TARGET 0 BY 2030
Operating margin 1)
TARGET  14%
Revenue growth 2)
TARGET  5%
Net debt/Equity 3) 
TARGET <40%
SKF’s long-term targets shall be achieved over a business cycle
1) Adjusted for items affecting comparability.  
2) Including acquisitions, adjusted for divestments.  
3) Excluding pension liabilities.    
4) Scope 1 & 2 C0 2e from all SKF manufacturing and logistics units.
Financial overview
MSEK unless otherwise stated Q1 2023 Q1 2022
Net sales 26,549 22,942
Adjusted operating profit 3,478 3,058
Adjusted operating margin, % 13.1 13.3
Operating profit 3,379 2,953
Operating margin, % 12.7 12.9
Adjusted profit before taxes 3,041 2,990
Profit before taxes 2,942 2,885
Net cash flow from operating activities 2,747 -271
Basic earnings per share 4.55 4.36
Adjusted earnings per share 4.77 4.59
 
2 SKF FIRST-QUARTER REPORT 2023

===== SIDA 3 =====

Review of the first quarter 
I’m pleased to report a solid quarter with strong organic  
sales growth and a record high adjusted operating profit for  
a first quarter. 
In the period, we delivered an organic sales growth of more 
than 10%, with continued robust demand across all our regions. 
Most of our targeted high-growth segments contributed with 
double-digit growth, e.g. railway, renewable energy and 
 aerospace. 
The adjusted operating profit improved to SEK 3,478 million 
(3,058), with an adjusted operating margin of 13.1% (13.3%). 
Through active and ongoing portfolio management and pricing 
activities, we have been able to offset cost inflation in the quarter.
Our Industrial business saw strong demand across all regions 
and most segments, with an especially high demand in India & 
Southeast Asia. In Europe, Middle East & Africa, price/mix was 
the main contributor to the overall sales growth. In China & 
Northeast Asia, demand bounced back in many industries, e.g. 
wind and industrial distribution. All in all, organic growth came  
in at 9.5%. The Industrial business, also delivered a robust result 
of SEK 3,208 million (2,775), with an adjusted operating margin 
of 16.9% (16.8%). It’s very satisfactory to note that all business 
areas improved their underlying profitability in the quarter, both 
sequentially and versus the same quarter last year.
Our Automotive business delivered an organic growth of 11.9% 
and an adjusted operating margin of 3.6% (4.4%). Despite the 
profitability comparison to last year, it is encouraging to see that 
the underlying business performance is on a positive trajectory as 
we progress our ongoing portfolio shift and emphasis on electrical 
vehicles. Also in this quarter, we have several new  customer wins 
supporting our strategic re-positioning.
Strong organic sales and positive margin trend 
Our focus on improving cash efficiency is continuing to show 
results, with net cash flow from operations exceeding SEK 2.7 
billion (-0.3 billion last year). This was driven mainly by the higher 
operating profit and our efforts to improve net working capital. 
Delivering on our strategic transformation
We continue to diligently work on executing our strategy, 
increasing our efficiency and reducing fixed costs. During the 
quarter, the total workforce has been reduced by approximately 
560 employees.
Our operating model has enabled an accelerated momentum 
in our prioritized industry segments within each business area.  
In high-speed machinery for example, our wide range of super  
precision bearings, with more than 50% of ceramic rolling elements, 
are growing rapidly. As an example, we won a sizeable contract 
with a Swiss producer of high-end motor spindles in the quarter. 
The first quarter also marked an important milestone for  
SKF, the celebrations of SKF’s 100 years of operations in India. 
Strong local presence and well-established supply chains are key 
to take advantage of future growth opportunities in the region. 
This gives us a strong foundation for future profitable growth. 
Another important achievement in the quarter was the 
approval and validation from the Science Based Targets initiative 
(SBTi) for our scope 1, 2 and 3 emissions reduction targets  
for 2030 and 2050. Sustainability is an integrated part of our  
strategic framework and a competitive advantage for SKF.  
Our annual cleantech revenues now exceed SEK 10 billion. 
The strong financial development and business achievements 
during the quarter are to a large extent the result of hard work 
and dedication by our employees. I would like to express my 
 sincere appreciation to all colleagues and partners across the  
SKF footprint. Furthermore, I would also like to recognize the  
co-creation work, by thousands of colleagues, to define our  
purpose: “Together, we re-imagine rotation for a better tomorrow” 
Thanks to the efforts by so many people, we’re now ready to 
embark on the journey to become a purpose-  driven company.
Outlook  
Given our strong sales growth in the first quarter, we adjust our 
full year guidance upwards somewhat. Looking into the second 
quarter of 2023, as well as the full year, we now foresee high 
single-digit organic sales growth. However, we expect continued 
volatility and geopolitical uncertainty impacting the markets in 
which we operate.
Rickard Gustafson
President and CEO
3 SKF FIRST-QUARTER REPORT 2023

===== SIDA 4 =====

Financial performance 
Key figures 31 March 
2023
31 Dec 
 2022
31 March 
2022
Net working capital, % of 12 months rolling sales 32.4 32.4 34.3
ROCE for the 12-month period, %1) 13.0 12.6 15.3
Net debt/equity, % 39.8 35.2 45.0
Net debt/equity, excluding post-employment benefits, % 24.0 19.3 22.5
Net debt/EBITDA, % 1.7 1.5 1.4
1) Adjusted for items affecting comparability.  
First quarter 2023
Operating profit for the first quarter was SEK 3,379 million (2,953). 
Operating profit included items affecting comparability of  
SEK -99 million (-105), mainly related to ongoing restructuring  
and cost reduction activities in Europe.
 The adjusted operating profit for the first quarter was  
SEK 3,478 million (3,058). The adjusted operating profit was 
positively impacted by sales volumes, price, customer mix and 
 currency effects. Adjusted operating profit was negatively 
impacted by cost increases, mainly related to material costs  
and wages and salaries.
Adjusted operating profit  bridge, MSEK Q1
2022 3,058
Currency impact 135
Divested businesses 5
Organic sales & Manufacturing volumes 2,274
Cost development -1,994
2023 3,478
• Financial income and expense, net was SEK -437 million (-68). 
Exchange rate fluctuations had a more negative effect in the first 
quarter 2023, compared to the first quarter 2022, and interest 
expenses was significantly higher in 2023. 
• Taxes in the quarter was SEK -783 million (-824) resulting in an 
effective tax rate of 26.6% (28.6%).
• Net cash flow from operating activities in the first quarter was 
SEK 2,747 million (-271). The improved cash flow is mainly driven 
by higher operating profit as well as less negative changes in 
working capital compared to last year where the most positive 
impact is coming from changes in inventories. 
• Net working capital in percent of annual sales was 32.4% in  
the first quarter compared to 34.3% in the first quarter 2022.  
The ratio was positively affected by lower accounts receivable 
and inventory levels in relation to sales compared to last year. 
• Provisions for post-employment benefits net decreased by  
SEK -155 million (-1,345) in the quarter driven by actuarial  
gains on gross obligation due to changed discount rates as well  
as payments made in the quarter.
4 SKF FIRST-QUARTER REPORT 2023

===== SIDA 5 =====

Light vehicles 49%
Vehicle 
aftermarket 32%
C ommercial 
vechicles 19%
Europe, 
Middle East 
& Africa 43%
India & Southeast 
Asia 12%
The Americas 31%
China & 
Northeast 
Asia 14%
Europe, 
Middle East 
& Africa 41%
The Americas 30%
China & 
Northeast 
Asia 20%
High-speed machinery 
& electrical drives 8%
Industrial 
distributors 37%
India & Southeast 
Asia 9%
Other  6%
Automation 2%
Traditional energy 3%
Material handling 3%
Off-highway 3%
Marine 3%
Agri, food and 
beverage 6%
Renewable energy 6%
Railway 7%
Aerospace 8% Heavy industries 8%
Q1
Net sales, change y-o-y, % Organic 1) Structure Currency Total
SKF Group 10.1 -2.0 7.6 15.7
Industrial 9.5 -2.0 7.4 14.9
Automotive 11.9 -2.1 8.3 18.1
1) Price, mix and volume
Q1
Organic sales in local currencies, change y-o-y, %
Europe, Middle 
East &  Africa
The  
Americas
China &   
Northeast Asia
India & 
Southeast Asia
SKF Group 12.3 6.5 8.4 14.5
Industrial +++ ++ +++ +++
Automotive +++ +++ - +++
Q1
Customer industries
Europe, Middle 
East &  Africa
The  
Americas
China &   
Northeast Asia
India & 
Southeast Asia
Organic sales in local currencies, change y-o-y:
Industrial distributors +++ +/- +++ +++
High-speed machinery & electrical drives +/- --- --- ++
Other + -- --- +/-
Renewable energy --- --- +++ +++
Heavy industries +++ +++ +/- +++
Aerospace +++ + --- +/-
Railway +++ +++ +++ +++
Agriculture, food and beverage ++ +/- --- +++
Off-highway +++ --- --- +/-
Marine +++ --- -- +/-
Material handling +++ +/- ++ +++
Automation +++ + +++ ---
Traditional energy +++ +/- +++ ++
Light vehicles +++ +++ --- +++
Vehicle aftermarket +++ +++ --- +
Commercial vehicles +++ +/- +++ +/-
Sales
Net sales by customer industry for Automotive Q1 2023
Net sales by region for Automotive Q1 2023
Net sales by region for Industrial Q1 2023
Net sales by customer industry for Industrial Q1 2023
5 SKF FIRST-QUARTER REPORT 2023

===== SIDA 6 =====

Industrial 
Comments on organic sales in local currencies in the first 
 quarter 2023, compared to the first quarter 2022  
Europe, Middle East & Africa
Overall, sales were significantly higher in the quarter. By industry, 
sales to most industrial segments were significantly higher. The 
exceptions were agriculture, food & beverage with higher sales, 
other was slightly higher, high-speed machinery & electrical 
drives were relatively unchanged and renewable energy with  
significantly lower sales compared to Q1 2022.   
The Americas
Overall, sales were higher in the quarter. By industry, sales to 
heavy  industries and railway were significantly higher, to aero -
space and automation it was slightly higher. Sales to industrial 
distributors, agriculture, food & beverage, material handling and 
traditional energy were relatively unchanged. To other it was 
lower while it was significantly lower to high-speed machinery  
& electrical drives, renewable energy, off-highway and marine  
compared to Q1 2022. 
China & North-East Asia
Overall, sales were significantly higher in the quarter. By industry, 
sales were significantly higher to industrial distributors, renewable 
energy, railway, automation, and traditional energy. To material 
handling it was higher and to heavy industries it was relatively 
unchanged. Sales to marine were lower while it was significantly 
lower to high-speed machinery & electrical drives, other, aero -
space, agriculture, food & beverage and off-highway compared  
to Q1 2022. 
India & South-East Asia
Overall, sales were significantly higher in the quarter. By industry, 
sales to industrial distributors, renewable energy, heavy industries, 
railway, agriculture, food & beverage and material handling were 
all significantly higher. To high-speed machinery & electrical 
drives it was higher and to other, aerospace, off-highway, and 
marine it was relatively unchanged. Sales to automation were 
significantly lower compared to Q1 2022. 
Automotive
Comments on organic sales in local currencies in the  
first quarter 2023, compared to the first quarter 2022
Europe, Middle East & Africa
Sales in the quarter were significantly higher compared to last 
year with significantly higher sales to all automotive segments.      
The Americas
Sales in the quarter were significantly higher compared to last 
year, with significantly higher sales to light vehicles and the  vehicle 
aftermarket. Sales to commercial vehicles were  relatively 
unchanged. 
China & North-East Asia
Sales were slightly lower in the quarter compared to last year with 
significantly higher sales to commercial vehicles and significantly 
lower sales to light vehicles and the vehicle aftermarket. 
India & South-East Asia
Sales in the quarter were significantly higher compared to last 
year with significantly higher sales to light vehicles and slightly 
higher sales to the vehicle aftermarket. Sales to commercial 
 vehicles were relatively unchanged. 
 
6 SKF FIRST-QUARTER REPORT 2023

===== SIDA 7 =====

Industrial 
Comments on operating profit 2023, compared to 2022
First quarter 2023
The adjusted operating profit for the first quarter was  
SEK 3,208 million (2,775). The adjusted operating profit was 
 positively impacted by sales volumes, price, customer mix and 
currency effects. Adjusted operating profit was negatively  
impacted by material costs and wages and salaries. 
Automotive 
Comments on operating profit 2023, compared to 2022
First quarter 2023
The adjusted operating profit for the first quarter was SEK 270  
million (283). The adjusted operating profit was positively impacted  
by sales volumes, price, customer mix and currency effects.  
Adjusted operating profit was negatively impacted by material  
costs and wages and salaries. 
Adjusted operating profit bridge, MSEK Q1
2022 2,775
Currency 127
Divested businesses 4
Organic sales & Manufacturing volumes 1,688
Cost development -1,386
2023 3,208
Adjusted operating profit bridge, MSEK Q1
2022 283
Currency 8
Divested businesses 1
Organic sales & Manufacturing volumes 749
Cost development -771
2023 270
Segment information
1)
 
MSEK unless otherwise stated
Industrial Automotive
 Q1 2023 Q1 2022 Q1 2023 Q1 2022
Net sales 18,968 16,520 7,581 6,422
Adjusted operating profit 3,208 2,775 270 283
Adjusted operating margin, % 16.9 16.8 3.6 4.4
Operating profit 3,134 2,685 245 268
Operating margin, % 16.5 16.3 3.2 4.2
1) Previously published figures for 2022 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.
7 SKF FIRST-QUARTER REPORT 2023

===== SIDA 8 =====

Significant events
2 February 2023 
Increased regionalization in North America  
Investments totaling SEK 700 million are being made in locating 
engineering and manufacturing capabilities in a new, greenfield 
facility in Monterrey, Mexico. The factory will produce products 
for electric vehicle drivetrain and commercial vehicle markets  
in North America, as well as a range of products for industrial 
applications.
9 March 2023  
Science Based Targets initiative
SKF has received validation of its Scope 1, 2 and 3 emissions 
reduction targets from the Science Based Targets initiative 
(SBTi). The SBTi validation means that SKF’s targets comply 
with their criteria and that targets are in line with both climate 
science and the goals of the Paris Agreement.
23 March 2023
Annual General Meeting of AB SKF
Hans Stråberg, Hock Goh, Geert Follens, Håkan Buskhe, 
Susanna Schneeberger and Rickard Gustafson were re-elected 
as Board members. Beth Ferreira, Therese Friberg, Richard 
Nilsson and Niko Pakalén were newly elected as Board members. 
Hans Stråberg was elected Chair of the Board. The Board 
appointed Håkan Buskhe as Vice Chair of the Board.
New Sustainability and Ethics Committee
The Board of Directors has established a new Board 
Committee; the Sustainability and Ethics Committee. 
The Sustainability and Ethics Committee shall oversee the 
Company’s strategy related to sustainability and ethics as well 
as the sustainability reporting processes.
Outlook and  
Guidance 
Demand for Q2 2023 compared to Q2 2022  
Looking into the second quarter of 2023, we expect high 
single-digit organic sales growth.  
 
Guidance for Q2 2023 
Currency impact on the operating profit is expected to  
be around SEK 100 million negative compared with the  
second quarter 2022, based on exchange rates per  
31 March 2023. 
Guidance 2023
• For the full year, we expect high single-digit organic sales 
growth, compared to 2022.
• Tax level excluding effects related to divested businesses:  
around 28%. 
• Additions to property, plant and equipment:  
around SEK 5 billion. 
Previous outlook and
guidance statement 
Demand for Q1 2023 compared to Q1 2022  
Looking into the first quarter of 2023, we expect mid 
 single-digit organic sales growth. 
Guidance for Q1 2023
Currency impact on the operating profit is expected to  
be around SEK 300 million positive compared with the  
first quarter 2022, based on exchange rates per  
31 December 2022. 
Guidance 2023
• For the full year, we expect mid single-digit organic sales 
growth, compared to 2022. 
• Tax level excluding effects related to divested businesses:  
around 28%. 
• Additions to property, plant and equipment:  
around SEK 5 billion. 
8 SKF FIRST-QUARTER REPORT 2023

===== SIDA 9 =====

0
3
6
9
12
2023 Q1202220212020 1)
SEK billion
 Thousand ton C0 2 e Equivalent energy GWh
9.1 9.2 10.1
 Thousand ton C0 2 e
 Equivalent energy GWh
10.6
0
100,000
200,000
300,000
400,000
202220212020
0
0.25
0.50
0.75
1
2023 Q1202220212020
0.75
0.67 0.68 0.7
0
500
1,000
1,500
2,000
0
3
6
9
12
2023 Q1202220212020 1)
SEK billion
 Thousand ton C0 2 e Equivalent energy GWh
9.1 9.2 10.1
 Thousand ton C0 2 e
 Equivalent energy GWh
10.6
0
100,000
200,000
300,000
400,000
202220212020
0
0.25
0.50
0.75
1
2023 Q1202220212020
0.75
0.67 0.68 0.7
0
500
1,000
1,500
2,000
0
3
6
9
12
2023 Q1202220212020 1)
SEK billion
 Thousand ton  C0 2 e Equivalent energy GWh
9.1 9.2 10.1
 Thousand ton C0 2 e
 Equivalent energy GWh
10.6
0
100,000
200,000
300,000
400,000
202220212020
0
0.25
0.50
0.75
1
2023 Q1202220212020
0.75
0.67 0.68 0.7
0
500
1,000
1,500
2,000
Sustainability performance
SKF has been publicly reporting on sustainability performance for many years in the Group’s annual report,  
on skf.com and in various other forums. Reflecting the increasing operational and strategic importance of  
these issues, the Group is now including certain related KPI’s also in the quarterly report. 
Cleantech revenues  
Cleantech includes revenues from key areas, such as: renewable 
energy, electric vehicles, electric railway, recycling industry, 
bearing remanufacturing, RecondOil and magnetic bearing 
solutions.
1) Previously published figures have been restated based on adaptation of the scope  
to better reflect and align with the sectors in the EU Taxonomy.
2)  2023 figures relate to the latest 12 months period.
Accident rate
The accident rate measures the number of recordable  
accidents per 100 employees per year.  
1)  2023 figures relate to the latest 12 months period.
CO2 emissions, Equivalent energy
CO2 emissions1) for SKF’s operations (Scope 1 and 2 according 
to the Greenhouse Gas protocol) and total energy use for the 
same scope are presented in the graph. SKF continues to make 
good progress towards the Group’s goal to have decarbonized 
operations by 2030.
1)  Due to external reporting constraints, this data is presented for the  
end of the previous quarter.
SKF’s magnetic bearings play a key role
in reducing CO 2e emissions, enabling high
rotational speeds, with no metal-to-metal
contact between rotating components.
9 SKF FIRST-QUARTER REPORT 2023

===== SIDA 10 =====

Condensed consolidated  
income statements
MSEK Jan-Mar 2023 Jan-Mar 2022
Net sales 26,549 22,942
Cost of goods sold -19,428 -16,453
Gross profit 7,121 6,489
Research and development cost -806 -765
Selling and administrative expenses -2,941 -2,779
Other operating income/expenses, net 5 8
Operating profit 3,379 2,953
Financial income and expense, net -437 -68
Profit before taxes 2,942 2,885
Taxes -783 -824
Net profit 2,159 2,061
Net profit attributable to:
Shareholders of AB SKF 2,073 1,984
Non-controlling interests 86 77
Basic earnings per share (SEK) 1) 4.55 4.36
1) Shares from the Performance Share Programme are not considered dilutive, therefore, diluted earnings  
per share is equal to basic earnings per share.
Condensed consolidated statements 
of comprehensive income
MSEK Jan-Mar 2023 Jan-Mar 2022
Net profit 2,159 2,061
Items that will not be reclassified to the income statement:
Remeasurements (actuarial gains and losses) 210 1,530
Income taxes -41 -394
169 1,136
Items that may be reclassified to the income statement:
Exchange differences arising on translation of foreign operations 115 819
Assets at fair value through other comprehensive income 18 -23
Income taxes – 1
133 797
Other comprehensive income, net of tax 302 1,933
Total comprehensive income 2,461 3,994
Shareholders of  AB SKF 2,381 3,900
Non-controlling interests 80 94
10 SKF FIRST-QUARTER REPORT 2023

===== SIDA 11 =====

Condensed consolidated  
balance sheets
MSEK March 2023 December 2022
Goodwill 12,330 12,351
Other intangible assets 5,664 5,842
Property, plant and equipment 25,841 24,897
Right of use asset leases 3,123 3,084
Deferred tax assets 3,262 3,173
Other non-current assets 1,872 1,781
Non-current assets 52,092 51,128
Inventories 26,130 26,052
Trade receivables 18,704 16,905
Other current assets 5,820 5,614
Other current financial assets 8,916 11,224
Current assets 59,570 59,795
Total assets 111,662 110,923
Equity attributable to shareholders of  AB SKF 51,263 51,927
Equity attributable to non-controlling interests 2,197 2,116
Long-term financial liabilities 21,377 21,219
Provisions for post-employment benefits 8,606 8,748
Provisions for deferred taxes 1,294 1,365
Other long-term liabilities and provisions 1,199 1,108
Non-current liabilities 32,476 32,440
Trade payables 12,259 11,594
Short-term financial liabilities 821 916
Other short-term liabilities and provisions 12,646 11,930
Current liabilities 25,726 24,440
Total equity and liabilities 111,662 110,923
Condensed consolidated statements 
of changes in shareholders’ equity
MSEK Jan-Mar 2023 Jan-Mar 2022
Opening balance 1 January 54,043 45,364
Net profit 2,159 2,061
  Hyperinflation adjustments 137 53
Components of other comprehensive income
  Currency translation adjustments 115 819
  Change in FV OCI assets and cash flow hedges 18 -23
  Remeasurements 210 1,530
  Income taxes -41 -393
  Other – –
Transactions with shareholders
  Non-controlling interest – –
  Cost for Performance Share Programmes, net 6 9
  Dividends -3,187 -3,198
  Other – –
Closing balance 31 March 53,460 46,222
11 SKF FIRST-QUARTER REPORT 2023

===== SIDA 12 =====

MSEK Jan-Mar 2023 Jan-Mar 2022
Operating activities:
Operating profit 3,379 2,953
Non-cash items:
Depreciation, amortization and impairment 998 860
Net loss/gain (-) on sales of PPE and businesses -29 -1
Other non-cash items 348 188
Income taxes paid -636 -489
Interest received 55 1
Interest paid -154 -65
Other -255 -257
Changes in working capital: -959 -3,461
Inventories -58 -1,913
Accounts receivable -1,764 -2,210
Accounts payable    598 711
Other operating assets/liabilities 265 -49
Net cash flow from operating activities 2,747 -271
Investing activities:
Payments for intangible assets, PPE, businesses  
and equity securities -1,502 -1,110
Sales of PPE, businesses and equity securities 68 3
Net cash flow used in investing activities -1,434 -1,107
Net cash flow after investments before financing 1,313 -1,378
MSEK Jan-Mar 2023 Jan-Mar 2022
Financing activities:
Proceeds from short- and long-term loans 27 16
Repayments of short- and long-term loans -66 -52
Repayment leases -190 -180
Cash dividends -3,187 -3,198
Other financing items:
Investments in short-term financial assets -229 -16
Sales of short-term financial assets 103 23
Net cash flow used in financing activities -3,542 -3,407
Net cash flow -2,229 -4,785
Change in cash and cash equivalents:
Cash and cash equivalents at 1 January 10,255 13,219
Cash effect excl. acquired/sold businesses -2,229 -4,793
Cash effect of acquired/sold businesses – 8
Exchange rate effect -72 20
Cash and cash equivalents at 31 March 7,954 8,454
Change in Net debt
Closing  
balance  
31 March 
2023
Other  
non-cash  
changes
Acquired/
sold 
 businesses
Cash  
changes 
Translation  
effect
Opening  
balance  
1 January 
2023
Loans, long- and short-term 18,507 -10 – -39 210 18,346
Post-employment benefits, net 8,466 59 – -276 62 8,621
Lease liabilities 2,962 230 – -190 1 2,921
Financial assets, others -678 30 – -127 18 -599
Cash and cash equivalents -7,954 – – 2,229 72 -10,255
Net debt 21,303 309 – 1,597 363 19,034
Condensed consolidated statements of cash flow
12 SKF FIRST-QUARTER REPORT 2023

===== SIDA 13 =====

Condensed consolidated financial information 
MSEK unless otherwise stated
Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
Net sales 20,735 20,146 20,986 22,942 23,655 24,975 25,361 26,549
Cost of goods sold -14,441 -14,582 -15,310 -16,453 -17,777 -19,223 -19,012 -19,428
Gross profit 6,294 5,564 5,676 6,489 5,878 5,752 6,349 7,121
Gross margin, % 30.4 27.6 27.0 28.3 24.9 23.0 25.0 26.8
Research and development cost -683 -648 -766 -765 -806 -779 -827 -806
Selling and administrative expenses -2,706 -2,385 -2,736 -2,779 -3,094 -2,831 -3,319 -2,941
- as % of sales 13.1 11.8 13.0 12.1 13.1 11.3 13.1 11.1
Other, net -27 57 420 8 -397 -213 -134 5
Operating profit 2,878 2,588 2,594 2,953 1,581 1,929 2,069 3,379
Operating margin, % 13.9 12.8 12.4 12.9 6.7 7.7 8.2 12.7
Adjusted operating profit 3,118 2,672 2,260 3,058 2,473 2,131 2,542 3,478
Adjusted operating margin, % 15.0 13.3 10.8 13.3 10.5 8.5 10.0 13.1
Financial net -77 -148 -266 -68 -484 -311 -376 -437
Profit before taxes 2,801 2,440 2,328 2,885 1,097 1,618 1,693 2,942
Profit margin before taxes, % 13.5 12.1 11.1 12.6 4.6 6.5 6.7 11.1
Taxes -661 -618 -559 -824 -511 -394 -709 -783
Net profit 2,140 1,822 1,769 2,061 586 1,224 984 2,159
Net profit attributable to
Shareholders of AB SKF 2,089 1,756 1,705 1,984 493 1,099 893 2,073
Non-controlling interests 51 66 64 77 93 125 91 86
13 SKF FIRST-QUARTER REPORT 2023

===== SIDA 14 =====

Reconciliation of profit before taxes for the Group
MSEK Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
Operating profit:
Industrial 1) 2,358 2,439 2,433 2,685 1,702 1,716 1,771 3,134
Automotive 1) 520 149 161 268 -121 213 298 245
Financial net -77 -148 -266 -68 -484 -311 -376 -437
Profit before taxes for the Group 2,801 2,440 2,328 2,885 1,097 1,618 1,693 2,942
1) Previously published figures for 2021 and 2022 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.
Number of shares
Jan-Mar 2023 Jan-Mar 2022
Total number of shares: 455,351,068 455,351,068
 -  whereof A shares 29,403,933 29,403,933
 -  whereof B shares 425,947,135 425,947,135
Weighted average number of shares in:
 -  basic earnings per share 455,351,068 455,351,068
14 SKF FIRST-QUARTER REPORT 2023

===== SIDA 15 =====

Key figures 
Definitions, see page 19
Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
EBITDA, MSEK 3,852 3,239 3,479 3,814 2,478 2,906 3,118 4,377
EBITA, MSEK 3,024 2,733 2,742 3,104 1,741 2,094 2,234 3,541
Adjusted operating profit, MSEK 3,118 2,672 2,260 3,058 2,473 2,131 2,542 3,478
Adjusted operating margin, % 15.0 13.3 10.8 13.3 10.5 8.5 10.0 13.1
Basic earnings per share, SEK 4.59 3.86 3.74 4.36 1.08 2.41 1.96 4.55
Adjusted earnings per share, SEK 5.11 4.04 3.01 4.59 2.90 2.86 3.00 4.77
Dividend per share, SEK 6.50 – – 7.00 – – – 7.00
Net worth per share, SEK 83 89 96 98 109 117 114 113
Share price at the end of the period, SEK 217.9 207.6 214.5 153.9 150.5 150.3 159.2 204.0
NWC, % of 12 months rolling sales 30.7 30.5 30.7 34.3 35.7 35.6 32.4 32.4
ROCE for the 12-month period, % 13.6 14.5 14.8 14.8 12.7 11.5 10.6 11.0
ROE for the 12-month period, % 18.4 19.3 18.8 18.3 13.8 11.7 9.5 9.4
Gearing, % 44.7 43.1 40.5 39.0 35.2 36.6 35.6 35.9
Equity/assets ratio, % 41.6 43.2 45.5 45.7 48.2 47.7 48.7 47.9
Additions to property, plant and equipment, MSEK 895 969 1,138 1,023 1,372 1,288 1,347 1,498
Net debt/equity, % 50.1 44.0 38.3 45.0 37.7 35.2 35.2 39.8
Net debt, MSEK 19,809 18,541 17,360 20,787 19,444 19,441 19,034 21,303
Net debt/EBITDA, % 1.5 1.4 1.2 1.4 1.5 1.5 1.5 1.7
Registered number of employees 41,433 42,139 42,602 42,763 42,602 42,885 42,641 42,083
SKF applies the guidelines issued by ESMA (European Securities and Markets Authority) on APMs (Alternative Performance Measures).  
These key figures are not defined or specified in IFRS but provide complementary information to investors and other stakeholders on the  
company’s performance. The definition of each APM is presented at the end of the interim report. For the reconciliation of each APM  
against the most reconcilable line item in the financial statements, see investors.skf.com/en.
15 SKF FIRST-QUARTER REPORT 2023

===== SIDA 16 =====

Segment information – quarterly figures 
1)
 
MSEK unless otherwise stated
Industrial Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
Net sales 14,889 14,747 15,135 16,520 17,114 17,735 18,147 18,968
Adjusted operating profit 2,627 2,485 2,164 2,775 2,372 1,907 2,159 3,208
Adjusted operating margin, % 17.6 16.9 14.3 16.8 13.9 10.8 11.9 16.9
Operating profit 2,358 2,439 2,433 2,685 1,702 1,716 1,771 3,134
Operating margin, % 15.8 16.5 16.1 16.3 9.9 9.7 9.8 16.5
Assets and liabilities, net 41,944 41,893 43,410 47,426 49,450 52,016 50,469 53,584
Registered number of employees 34,552 35,215 35,539 35,700 35,845 36,166 35,991 35,571
Automotive Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
Net sales 5,846 5,399 5,851 6,422 6,541 7,240 7,214 7,581
Adjusted operating profit 491 187 96 283 101 224 383 270
Adjusted operating margin, % 8.4 3.5 1.6 4.4 1.5 3.1 5.3 3.6
Operating profit 520 149 161 268 -121 213 298 245
Operating margin, % 8.9 2.8 5.0 4.2 -1.8 2.9 4.1 3.2
Assets and liabilities, net 10,645 10,828 10,591 12,236 14,852 15,951 15,177 15,288
Registered number of employees 3,972 3,941 3,989 3,983 4,027 4,063 4,023 4,002
1) Previously published figures for 2021 and 2022 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.
16 SKF FIRST-QUARTER REPORT 2023

===== SIDA 17 =====

Notes
Note 1  Accounting principles
The consolidated financial statements of the SKF Group were 
prepared in accordance with International Financial Reporting 
Standards (IFRS) as adopted by the EU. The interim report was 
prepared in accordance with IAS 34 Interim Financial Reporting. 
 Disclosure as required by IAS 34 p. 16 A is provided in the 
notes to the financial statements as well as in other parts of the 
interim report. The financial statements of the Parent Company 
were prepared in accordance with the “Annual Accounts Act” 
and the RFR 2 “Accounting for legal entities”.  
SKF Group and the Parent Company applied the same accounting 
principles and methods of computation in the interim financial 
statements as compared with the latest annual report. IASB 
issued several amended accounting standards that were 
endorsed by EU, effective date 1 January 2022. None of these 
have a material effect on the SKF Group´s financial statements.
 Valuation principles and classifications of the financial instru -
ments, as described in SKF Annual report 2022, have been  
consistently applied throughout the reporting period. There are 
no major changes in fair value during the period.
Note 2  Transactions with relates parties
No significant change is present for transactions with related 
parties in relation to disclosure provided in Annual Report 2022.
Note 3  Risks and uncertainties in the business
The SKF Group operates in many different industrial and 
geographical areas that are at different stages of the economic 
cycle. A general economic downturn at global level, for example 
caused by a pandemic, or in one of the world’s leading economies, 
could reduce the demand for the Group’s products, solutions 
and services for a period of time. In addition, terrorism and 
other hostilities, as well as disturbances in worldwide financial 
markets and natural disasters, could have a negative effect on 
the demand for the Group’s products and services. There are also 
political and regulatory risks associated with the wide  
geographical presence. 
The SKF Group is subject to both transaction and translation  
of currency exposure. For commercial flows the SKF Group  
is primarily exposed to the EUR, USD and CNY. As the major part 
of the profit is made outside Sweden, the Group is also exposed  
to translational risks in all the major currencies.  
 The financial position of the parent company is dependent  
on the financial position and development of the subsidiaries.  
A general decline in the demand for the products and services 
provided by the Group could mean lower residual profits and 
lower dividend income for the parent company, as well as a need 
for writing down values of the shares in the subsidiaries. 
SKF is subject to an investigation in Brazil by the General 
Superintendence of the Administrative Council for Economic 
Defense, regarding an alleged violation of antitrust rules by  
several companies active on the automotive aftermarket in Brazil.
SKF’s operations are affected by the ongoing conflict in Ukraine. 
SKF operates in Ukraine with approximately 1,100 employees. 
Sales in Ukraine amounted to less than 0.1% of SKF’s total sales 
in 2022. SKF’s factory in Lutsk, Ukraine, accounted for a pro -
duction volume of approximately 0.5% of SKF’s total production 
volume in 2022. The factory in Ukraine has been producing 
whenever possible due to prevailing circumstances however at  
a lower level than normal.
For a more detailed description of risks and uncertainties, 
please see the Risk Management section on pages 37-39 in the 
SKF Annual Report 2022.  
Gothenburg, 27 April 2023
Aktiebolaget SKF (publ)
Rickard Gustafson
President and CEO
This report has not been reviewed
by AB SKF’s auditors.
17 SKF FIRST-QUARTER REPORT 2023

===== SIDA 18 =====

Parent Company condensed  
income statements
MSEK Jan-Mar 2023 Jan-Mar 2022
Revenue 1,959 1,903
Cost of goods sold -1,651 -1,514
General management and administrative expenses -411 -389
Other operating income/expenses, net 4 15
Operating result -99 15
Financial income and expense, net 4 7
Profit before taxes -95 22
Appropriations – –
Taxes 4 -27
Net profit -91 -5
Parent Company condensed state-
ments of comprehensive income
MSEK Jan-Mar 2023 Jan-Mar 2022
Net profit -91 -5
Items that may be reclassified to the income statement:
Assets at fair value through other comprehensive income 18 -23
Other comprehensive income, net of tax -73 -23
Total comprehensive income -73 -28
Parent Company condensed  
balance sheets
MSEK March 2023 December 2022
Intangible assets 1,182 1,234
Investments in subsidiaries 22,441 22,441
Receivables from subsidiaries 18,578 18,388
Other non-current assets 1,062 927
Non-current assets 43,263 42,990
Receivables from subsidiaries 3,319 5,555
Other receivables 336 358
Current assets 3,655 5,913
Total assets 46,918 48,903
Shareholders' equity 22,839 26,117
Provisions 755 666
Non-current liabilities 18,575 18,386
Current liabilities 4,749 3,734
Total shareholders' equity, provisions and liabilities 46,918 48,903
18 SKF FIRST-QUARTER REPORT 2023

===== SIDA 19 =====

Alternative performance measures and definitions
Adjusted operating profit
Operating profit excluding items affecting comparability.
Adjusted operating margin
Operating profit margin excluding items affecting comparability.
Adjusted earnings/loss per share in SEK 
Basic earnings per share excluding items affecting 
comparability.
Basic earnings/loss per share in SEK (as defined by IFRS)
Profit/loss after taxes less non-controlling interests divided by 
the ordinary number of shares. 
Currency impact on operating profit
The effects of both translation and transaction flows based  
on current assumptions and exchange rates compared to the 
corresponding period last year.
Debt
Loans and net provisions for post-employment benefits.
EBITA 
(Earnings before interest, taxes and amortization). Operating 
profit before amortizations.
EBITDA 
(Earnings before interest, taxes, depreciation and amortization)
Operating profit before depreciations, amortizations, and 
 i mpairments.
Equity/assets ratio
Equity as a percentage of total assets.
Gearing
Debt as a percentage of the sum of debt and equity. 
Gross margin
Gross income as a percentage of net sales.
Items affecting comparability
Significant income/expenses that affect comparability between 
accounting periods. This includes, but is not limited to, restruc -
turing costs, impairments and write-offs, currency exchange 
rate effects caused by devaluations and gains and losses on 
divestments of businesses.
Net debt
Debt less short-term financial assets excluding derivatives.
Net debt/EBITDA
Net debt, as a percentage of twelve months rolling EBITDA.
Net debt/equity
Net debt, as a percentage of equity.
Net worth per share (Equity per share)
Equity excluding non-controlling interests divided by the ordinary 
number of shares.
Net working capital as % of 12 month rolling sales (NWC)
Trade receivables plus inventory minus trade payables as a 
 percentage of twelve months rolling net sales.
Operating margin
Operating profit/loss, as a percentage of net sales.
Organic growth 
Sales excluding effects of currency and aquired and divested 
businesses. 
Revenue growth 
Sales excluding effects of currency and divested businesses. 
Registered number of employees
Total number of employees included in SKF’s payroll at the end  
of the period. 
Return on capital employed (ROCE)
Operating profit/loss plus interest income, as a percentage of 
twelve months rolling average of total assets less the average  
of non-interest bearing liabilities.
Return on equity (ROE)
Profit/loss after taxes as a percentage of twelve months rolling 
average of equity.
SKF demand outlook
The demand outlook for SKF´s products and services represents 
management’s best estimate based on current information about 
the future demand from our customers. The demand outlook is 
the expected volume development in the markets where our 
 customers operate.
For reconciliations of other Key Ratios, see investors.skf.com/en
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 expectations will prove to have been correct. 
Accordingly, results could differ materi ally 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 investors.skf.com/
en), including under the Administration Report; “Risk 
management” and in this report under “Risks and 
uncertainties in the business.”
19 SKF FIRST-QUARTER REPORT 2023

===== SIDA 20 =====

This is SKF
SKF is a world-leading provider of innovative solutions that help 
industries become more competitive and sustainable. By making 
products lighter, more efficient, longer lasting, and repairable, 
we help our customers improve their rotating equipment 
performance and reduce their environmental impact. Our
offering around the rotating shaft includes bearings, seals, 
lubrication management, condition monitoring, and services.  
Quick facts
Founded 1907
Represented in more than 129 countries 
Net sales in 2022: SEK 96,933 million  
42,641 employees
15 technical centers
91 manufacturing sites
More than 17,000 distributors  
AB SKF (publ)
Postal address: SE-415 50 Gothenburg, Sweden 
Visiting address: Sven Wingquists Gata 2 
tel. +46 31 337 10 00
www.skf.com 
Company reg.no. 556007-3495 
For further information, please contact:
INVESTOR RELATIONS: Patrik Stenberg, Director,  
SKF Group Investor Relations and Mergers & Acquisitions
tel:  46 31 337 2104 mobile: 46 705 472 104  
e-mail: patrik.stenberg@skf.com
PRESS: Carl Bjernstam, Corporate Communication
tel: 46 31 337 2517 mobile: 46 722 201 893  
e-mail: carl.bjernstam@skf.com
® SKF is a registered trademark of AB SKF (publ). © SKF Group 2022. All rights reserved. Please note that this publication may not be copied or distributed, in whole or in part, unless prior 
written permission is granted. Every care has been taken to ensure the accuracy of the information contained in this publication, but no liability can be accepted for any loss or damage whether 
direct, indirect or consequential arising out of the use of the information contained herein. April 2023. 
SKF is a key manufacturer in the growing Machine Tool segment, offering a wide range of super precision bearings where more than 50% include ceramics.
Webcast 
27 April at 09:00 (CEST), 08.00 (UK)
https://investors.skf.com/en
Sweden  +46 10 884 80 16
UK / International +44 20 3936 2999
Passcode:  863862
The financial information in this report is information which 
AB SKF is required to disclose under the EU Market Abuse 
Regulation (EU) No 596/2014. The information was provided 
by the above contact persons for publication on  
27 April 2023 at 08.00 CEST.  
Calendar 2023
19 July  Q2 report
27 October  Q3 report  
9 February  2024, Q4 report
20