AB SKF - SKFRY STOCK NEWS

SKF has responded to media reports about its sales to companies within the Russian nuclear weapons program. The company is conducting an internal investigation, supported by external experts, after discovering a distributor sold SEK 113,000 worth of standard SKF products to an armaments company without SKF's knowledge. SKF emphasizes that it has not had direct dealings with the reported Russian entities and that these sales do not breach any sanctions or export controls. Appropriate actions will be taken regarding the distributor's breach of contract.

The Annual General Meeting (AGM) of Aktiebolaget SKF was held on March 24, 2022, via postal voting due to Covid-19 restrictions. The income statements and balance sheets were approved, along with a dividend of SEK 7.00 per share, payable to shareholders registered by March 28, 2022. Board fees were set, including SEK 2,530,000 for the Chairman and SEK 825,000 for other members. Hans Stråberg was re-elected Chairman. New principles for executive remuneration and a Performance Share Programme for 2022 were also approved.

AB SKF announces a conversion of shares from Series A to Series B effective February 28, 2022. The new share capital totals SEK 1,138,377,670 with 29,403,933 Series A shares and 425,947,135 Series B shares issued. This adjustment results in 71,998,646.5 total votes within the company. Notably, AB SKF does not possess any own shares. This disclosure fulfills the obligations under the Financial Instruments Trading Act and was published at 8:00 CET on the stated date.

SKF reported net sales for Q4 2021 of SEK 20,986 million, reflecting a 4% organic growth. The full-year net sales reached SEK 81,732 million, up from SEK 74,852 million in 2020. However, the adjusted operating margin declined to 10.8% in Q4 from 13.2% the previous year. Despite strong industrial growth of 9%, the automotive sector faced a -8% decline. SKF anticipates 5-10% organic sales growth for 2022, with plans for price increases to offset rising costs.

SKF will announce its FY 2021 Results and an updated strategic framework on 3 February 2022. The year-end results will be released at 8:00 CET, followed by a live webcast for investors and analysts from 9:00 to 10:30 CET. Participants are encouraged to log in 10 minutes prior to the event. The webcast can be accessed via a provided link. Further details will be available on SKF's Investor Relations website. For media inquiries, contact Carl Bjernstam via email.

On January 10, 2022, SKF announced the acquisition of Laser Cladding Venture n.v. (LCV), a Belgium-based additive manufacturing company. This strategic move aims to enhance SKF's service and remanufacturing offerings through advanced manufacturing technologies. The acquisition supports SKF's commitment to circular economy principles and reducing the CO2 footprint, positioning the company to meet future customer demand more effectively. The integration of LCV's capabilities is expected to strengthen SKF's overall value proposition in the industry.

SKF has signed a license agreement with Christof Global Impact, granting exclusive rights to commercialize its multi-feedstock slop-oil recovery technology. Originally part of SKF's acquisition of RecondOil in 2019, this technology is not central to SKF's business focus. Instead, SKF will concentrate on developing the RecondOil Double Separation Technology for industrial lubricants. Thomas Fröst, SKF Industrial Technologies President, expressed confidence in the partnership's potential to maximize technology value, while Christof's CEO highlighted their competence in industrialization.

On October 29, 2021, AB SKF announced a conversion of shares from Series A to Series B, resulting in a total share capital of SEK 1,138,377,670. The company's total shares now comprise 30,503,933 Series A shares and 424,847,135 Series B shares, while the total voting rights amount to 72,988,646.5. AB SKF does not hold any treasury shares. This disclosure is mandated under the Financial Instruments Trading Act.

SKF reported solid demand in Q3 2021, achieving net sales of SEK 20,146 million, up from SEK 18,596 million year-over-year, driven primarily by a 13% organic growth in its Industrial segment. However, the Automotive sector faced challenges with a -5% decline in sales due to reduced production from key customers. The group's adjusted operating profit was SEK 2,672 million, maintaining a 13.3% margin. SKF anticipates continued supply chain issues and plans to close six manufacturing sites by year-end. The company targets a net zero greenhouse gas supply chain by 2050.