Targets and performance

SKF’s overall financial objective is to create value for its shareholders. Over time, the return on shareholders’ investment should exceed the risk-free interest rate by around five percentage points. This is the basis for SKF’s financial objectives and SKF’s financial performance management model.

This objective shall be met by conducting all aspects of the Group’s business in accordance with the principles defined by SKF Care, thereby taking financial, social and environmental considerations into account. 

SKF's new financial targets 2016

The new financial targets from 2016 are to achieve, over a business cycle, an organic growth of 5% in local currencies, a reported operating margin of 12%, a return on capital employed of 16%, a net working capital
of 25% and a net debt/equity ratio of 80%.

Environmental and safe workplace targets

SKF’s environmental strategy – SKF BeyondZero – is an integral part of SKF Care and its objective is to create a positive impact on the environment. Targets address environmental aspects over the value chain, some of which are presented here.

Definitions

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