SKF Group Restructuring - SKF is separating into two standalone companies: SKF Industrial ("Fighting friction") and SKF Automotive ("Moving people further")[8, 10] - The Automotive business spin-off is expected to be operationally ready by mid-2026[17] - SKF Industrial rightsizing activities include a net reduction of approximately 1,200 positions, with about 500 re-hires related to strategic footprint shifts[202] SKF Industrial Financial Targets - SKF Industrial targets organic growth of 4%, which is 1 percentage point above market growth over a business cycle, excluding Automotive contract manufacturing[18, 193] - SKF Industrial aims for an adjusted operating margin of over 17% in the mid-term and over 19% in the long-term[18, 32] - SKF Industrial targets an adjusted ROCE of 20% and a cash conversion rate of 60%[18, 190] - SKF Industrial aims for net zero emissions by 2050 and decarbonized operations by 2030[190] SKF Automotive Financial Objectives - SKF Automotive's indicative long-term objectives include "high single digit" adjusted operating margin and "above market" organic growth over a business cycle[18, 25, 257] - SKF Automotive targets a net leverage of less than 1x (Net Debt (including Pensions) / Adjusted EBITDA)[25, 257] SKF Industrial Growth Strategies - SKF Industrial aims to leverage attractive high-growth industries and geographies, scale recurring service and intelligent solution business, and accelerate Specialized Industrial Solutions[32, 36] - SKF Industrial's Specialized Industrial Solutions account for approximately 25% of revenue[30, 89] - SKF Industrial has seen approximately 10% sales CAGR in Service & Intelligent solutions between 2022 and 2024[73]