The programs cockpit — turning program status into an executable rollout plan across the Vertevo carve-out, the ~BSEK 2 rightsizing, regionalization & footprint and condition monitoring & AI services, workstream by workstream, blocker by blocker, krona by krona.
The transformation programs are the value and the risk: SEK 1.6 bn of savings is still unbanked across 4 in-flight programs at 76% average completion, with 8 open blockers gating the rollout. Clear the critical path — the Vertevo production transfers and the EGM — and bank the run-rate before the Q4 2026 listing.
3 of 4 headline metrics improving vs prior · still off target: Program Realization (rightsizing & WCM) 70.0% vs 100.0%, Adjusted Operating Margin 12.7% vs 17.0%, Opex % of Revenue (S&A incl. R&D) 14.1% vs 13.0%
Open blockers hold the rollout — and SEK 1.6 bn of unbanked savings — hostage across the 4 in-flight programs.
Gates the program go-live (restated ledger, production-line transfers & the Q4 2026 Vertevo listing window).
Rightsizing — European cost base (~BSEK 2) is leaking run-rate: SEK 1.9 bn actual vs SEK 2.0 bn plan (SEK -150 M variance) — it compounds into the forecast quarters.
Owner: Susanne Larsson · CFO
Vertevo Carve-out runs at 0.1x today — SEK 1.4 bn spent against SEK 150 M realized as savings ramp; keep it inside the announced BSEK 2.5–3.0 IAC envelope.
Front-loaded spend is expected — track quarter by quarter
The transformation programs are where SKF's margin and savings are created — and where they leak. This view turns "status" into an executable plan: the 4 in-flight programs (the Vertevo carve-out, the ~BSEK 2 rightsizing, regionalization & footprint, and condition monitoring & AI services), their six workstreams (SAP S/4 ledger, customer & distributor master, production transfers, plant MES / WCM automation, the legal carve-out & stand-alone costs, and energy / decarbonization), the blockers in the way, and the ~SEK 1.6 bn of savings still unbanked waiting on the rollout.
Do this: work the blocker named in each card first; if none, push the lowest-% workstream to its target date.
Read across each row for the program's weak spot; read down each column for the workstream that's stuck enterprise-wide. Tint = status; number = % complete.
| Program | SAP S/4 / Restated Ledger | Customer & Distributor Master | Production Transfers / Footprint | Plant MES / Automation (WCM) | Org / Legal Carve-out & Stand-alone Costs | Energy / Decarbonization & Efficiency |
|---|---|---|---|---|---|---|
| Vertevo Carve-out | 96% | 78% | 62% | 80% | 85% | 75% |
| Rightsizing | 80% | 72% | 70% | 78% | 68% | 82% |
| Regionalization & Footprint | 82% | 70% | 58% | 76% | 72% | 84% |
| Condition Monitoring & AI Services | 86% | 62% | 55% | 88% | 92% | 70% |
Do this: assign each open blocker a named owner and a date; the Blocker/High rows are the ones holding savings — and the listing window — hostage.
| Severity | Program | Workstream | Description | Owner | Due | Status |
|---|---|---|---|---|---|---|
| Blocker | Vertevo Carve-out | Production Transfers / Footprint | Automotive's dependence on Industrial contract manufacturing must be cut before listing — the extra production-line transfers moved the window H1 → Q4 2026 (cost stays inside the envelope). | Separation PMO · Operations | 2026-10-30 | Mitigating |
| High | Vertevo Carve-out | Org / Legal Carve-out & Stand-alone Costs | EGM to approve the Lex Asea distribution not yet convened — Board listing proposal expected autumn 2026. | Mathias Lyon (General Counsel) | 2026-09-30 | Mitigating |
| High | Regionalization & Footprint | Production Transfers / Footprint | Americas consolidation mid-move (Q2 2026 IAC ~MSEK 500) — two US plants transferring to Monterrey; delivery risk during the switch. | Manish Bhatnagar | 2026-12-15 | Open |
| Medium | Rightsizing | Org / Legal Carve-out & Stand-alone Costs | ~MSEK 600 of the ~BSEK 2 run-rate still to land; European works-council consultations pace the reductions. | Ann-Sofie Zaks (People) | 2026-12-31 | Open |
| Medium | Condition Monitoring & AI Services | Customer & Distributor Master | ~17,000 distributor locations across regional CRMs need one golden master before the connected-services upsell can be automated. | Data · MDM steward | 2026-11-30 | Open |
| Medium | Vertevo Carve-out | SAP S/4 / Restated Ledger | Vertevo stand-alone ERP instance live; Q3 2026 dry-run of fully separate reporting still pending audit sign-off. | Susanne Larsson · Group Finance | 2026-09-15 | Mitigating |
| Low | Regionalization & Footprint | Energy / Decarbonization & Efficiency | Six factories decarbonized Dec 2025; green-electricity contracts for two India & SEA sites pending. | Operations · Sustainability | 2026-10-10 | Open |
| Low | Condition Monitoring & AI Services | Plant MES / Automation (WCM) | IMx/Axios telemetry from two legacy US plants not yet on the common cloud; OEE visibility gap. | Manufacturing · Operations | 2026-11-15 | Open |
Do this: the negative-variance programs are leaking run-rate — put a 90-day recovery plan on each before they compound into the forecast quarters.
| Program | Owner | Plan | Actual | Variance | % captured |
|---|---|---|---|---|---|
| Rightsizing — European cost base (~BSEK 2) | Susanne Larsson · CFO | SEK 2.0 bn | SEK 1.9 bn | SEK -150 M | 93% |
| World Class Manufacturing (2019-25) | Manufacturing · Operations | SEK 5.0 bn | SEK 5.0 bn | +SEK 0 M | 100% |
| Regionalization & footprint optimization | Manish Bhatnagar · Regions | SEK 800 M | SEK 700 M | SEK -100 M | 88% |
| Separation stand-alone cost offset | Separation PMO | SEK 500 M | SEK 420 M | SEK -80 M | 84% |
| RecondOil & remanufacturing circularity | Annika Ölme · Technology | SEK 160 M | SEK 130 M | SEK -30 M | 81% |
Do this: the run-rate ramps behind front-loaded spend — keep in-flight programs inside the announced IAC envelope; World Class Manufacturing shows the captured end-state.
| Program | Since | Budget | Spent | Savings target | Savings realized | ROI | Status |
|---|---|---|---|---|---|---|---|
| Rightsizing | 2025 | SEK 2.9 bn | SEK 2.9 bn | SEK 2.0 bn | SEK 1.4 bn | 0.5x | In progress |
| Vertevo Carve-out | 2024 | SEK 2.8 bn | SEK 1.4 bn | SEK 500 M | SEK 150 M | 0.1x | In progress |
| Regionalization & Footprint | 2023 | SEK 1.5 bn | SEK 900 M | SEK 800 M | SEK 450 M | 0.5x | In progress |
| World Class Manufacturing | 2019 | SEK 3.5 bn | SEK 3.5 bn | SEK 5.0 bn | SEK 5.0 bn | 1.4x | Integrated |
| Decarbonization | 2019 | SEK 1.0 bn | SEK 700 M | SEK 400 M | SEK 260 M | 0.4x | In progress |
| Condition Monitoring & AI Services | 2015 | SEK 1.2 bn | SEK 950 M | SEK 900 M | SEK 620 M | 0.7x | In progress |