Report pick

May 2017
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SKF

Göteborg, Sweden

SKF


Report Facts

Company name: AB SKF
Fiscal year end: December 31, 2016
Report title: A world of reliable rotation
President and CEO: Alrik Danielson
Chairman: Leif Östling
Report length: 160 pages
Auditors: PricewaterhouseCoopers AB
Website: www.skf.com
Email: skf.ir@skf.com
Design and production: SKF and Solberg

Report Rating

4.0/5

(To qualify for Report pick, the minimum rating required is ★★★(★). Rating scale below)

Profile

SKF Group is a leading global supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems… SKF works to reduce friction, make things run faster, longer, cleaner and more safely...

(Report excerpts. Italics are own company’s words)

Key Figures

Net sales: SEK 72,787 million 
Operating profit: SEK 7,527 million
Profit (before taxes): SEK 6,739 million
Earnings per share: SEK 8.75 
Dividend: SEK 5.50
Return on equity: 16.5%
Net debt/equity: 84.4%
Employees: 44,868

(Source: figures sourced from the annual report)

Competitors

  • Schäffler
  • NSK
  • Minebea
  • Timken
  • NTN
  • ...
 

Triple A

  • SKF overview clearly depicts the why, what, where, how, to whom.
  • From innovation to cost competitiveness to maximized cash flow, strategic priorities are well developed. > Transparency over directors and executives’ details.
 

Double A

  • Rather compact 160-page report.
  • How SKF creates value, driving forces and trends, resources.
  • Objectives and attainment set forth.
  • Good segment information.
  • Description and management of risks. Sensitivity analysis.
  • Share indicators and shareholder information.
  • Comments next to financial statements.
  • Actions over the value chain for environmental and social performance, with related specific standard disclosures.
  • Historical figures and ratios.
 

Simple A

  • CEO’s message short and to the point.
  • Primary segments defined too broadly?
  • Governance matters OK -e.g. a detailed Auditor’s report- but not developed enough.
 

B Sides

  • Key figures are much too short.
  • No HTML online report. 
 

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item.
Contact e.com@reportwatch.net

 

Selected Page

(SKF Annual Report 2016, pp 12-13)
SKF Annual Report 2016, pp 12-13


Rating Scale
5
First-Rate
4.5
Excellent
4
Very good
3.5
Sound
3
Average
2.5
Uneven
2
Common
1.5
Substandard
1
Poor
0.5
Uncompetitive
The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.