© SKF Group CMD 2013 SKF Automotive CMD 2013. © SKF Group CMD 2013.

© SKF Group CMD 2013

SKF Automotive

CMD 2013



SKF Automotive speakers

Tryggve Sthen

President

SKF Automotive

Bernd Stephan

Director,

Business unit Trucks

Edward Holweg

Director,

Product and Systems Development


Agenda SKF Automotive

Market update

Way ahead

Special focus - Trucks

Special focus - SKF knowledge engineering

Key business messageQ&A


Market update


Sales in local currencies and demand outlook

Sequential trend

Sales in local currencies excl. structure change y-o-y YTD 2013

EuropeNorth

AmericaLatin

AmericaAsia

Middle East & Africa

Total Automotive +/- +/- + +++

Trucks ++ --- +++

Cars and light vehicles ++ +++ +++ +++

Vehicle service market +++ ++ +++ -- +

Two-wheelers and electrical +/- --- +++ ---

SKF demand

outlook for Q3 2013


Business recovering

Sales development Operating margin

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

20,0

2007 2008 2009 2010 2011 2012 2013 H1

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

2007 2008 2009 2010 2011 2012 2013

H1

5%

SE

K b

illio

n

Per

cent

Excl one time costs

8,5%

Q2, 20135,8%


Customer segments

Cars Trucks Two wheelers Vehicle aftermarket

Other


Car ChassisTrucks PTE & TWVehicle Service Market

Sealing Solutions

Aurelio NervoBernd Stephan Franco Ferro Christer Cedervall John Bohenick

Five global business units with clear roles & responsibilities.

SKF Automotive organisation


Light vehicle production

0

8000

16000

24000

32000

40000

W.Europe N.America Asia

2007

2008

2009

2010

2011

2012

Fcst2013

Source: IHS July 2013

-3.1 %

+4.8 %

+3.0 %Total growth 2013/2012: +2,3% Values in K units


Two wheeler production

05 000

10 00015 00020 00025 00030 00035 00040 00045 00050 00055 00060 00065 000

W.Europe L.America Asia

2007

2008

2009

2010

2011

2012

2013fcst

Source: Frost & Sullivan and others, July 2013

-1.4% +4.2 %

+8.3%Total growth 2013/2012: +8% Values in K units


0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

W.Europe N.America Asia

2007

2008

2009

2010

2011

2012

FC2013

Trucks production (GVW>6t)

Source: LMC Report Q2 2013

-6,6%

-0,4%

+4,2%

Total growth 2013/2012: +3% Values in K units


The way ahead


SKF Automotive strategy

GrowthFast

growing markets

Engineering

partner

Winning customers

After-market

Strategic account manage-

mentCost and capital

efficiency

ProductivityOffers

for regional demand

Cost reductions


Growth drivers - Winning customers

GrowthFast

growing markets

Engineering

partner

Winning customers

After-market



efficiencyProductivi

tyOffers for

regional demand

Cost reductions


Growing with winning OEM customers

Recent successful cases


Supplier recognition

GM Supplier of the Year Award 2012

3 consecutive years!


SAIC Zhan Jinping, Suspension System Manager


SAIC

Excellent supplier important for brand building

SKF best in R&D and quick response time

Need SKF technology to meet goals


GeelyChen Yong, Purchasing Manager


Geely

Brand positioning

Localization in China

High performance and energy efficient products


Growth drivers - Aftermarket

GrowthFast

growing markets

Engineering

partner

Winning customers

After-market



efficiencyProductivi

tyOffers for

regional demand

Cost reductions


Growing the vehicle aftermarket

Growing range

600 new kits in 2013 = 20.600 kits

Global customer need for local markets

Step up in-sourcing

Continued re-sourcing to have the right suppliers

Flexible production capacity OE to aftermarket

Products

Asia distributor network grown with 40 new in half year 2013

Consolidation of national distributors to Int. trading groups

Formed Global Product Management organization

Customers

Significantly increased flexibility and capacity in packaging centers

Extensive sales and marketing efforts to launch SKF branded CV-Joint kits

Performance


Growth drivers – Engineering partner

GrowthFast

growing markets

Engineering

partner

Winning customers

After-market


mentCost and

capitalefficien

cy

ProductivityOffers

for regional demand

Cost reductions


Engineering partner

Local engineering globally

SKF Global Technical Centers – expansion in fast growing markets

Simulation and calculation expertise

Testing and evaluation expertise

Reducing lead times by more than 10 times

Reducing weight and friction with up to 50%

Solving customer issues

12 engineering centers


SKF BeyondZero portfolio - Automotive

SKF Turbocharger Ball Bearing Unit

High pressure valve stem seal

SKF eDrive Ball Bearing

SKF Low Weight Hub Bearing Unit SKF

StopGo

SKF Rotor Positioning Bearing

E2 TRB for truck final drive

SKF Low Friction Engine Seal

SKF Bus Door Actuator

High performance seal for hub bearing unit

SKF Low Friction Hub Bearing Unit

SKF Sealed Energy Efficient deep groove ball bearing

SKF Rotor Positioning Sensor-Bearing Unit for traction motors

Energy efficient solutions to reduce CO2 emissions and fuel/energy consumption.


SKF Automotive – Reducing cost

GrowthFast

growing markets

Engineering

partner

Winning customers

After-market


mentCost and

capitalefficien

cy

ProductivityOffers

for regional demand

Cost reductions


Cost reduction programmes

Sustainable cost reductions through a number of global programmes

Manufacturing footprintInvestment focus in best cost countries

Cost reduction from sourcing and design

Business Excellence ManufacturingManagement and administrationSix SigmaQuality

Inventory optimization

50 factories in 45 locations

45% in fast growing markets


Business Excellence in Guadalajara, Mexico

Inventory reduction (days of inventory) - 33%

Down time reduction - 30%

Increased efficiency +19%

Scrap reduction - 44%

How was this achieved?

Deep dive to understand the gap vs. ideal lean conditions

Master schedule

Daily management process with visual inspection

All people involved and committed

Continuous improvements


Manufacturing and engineering footprint – Asia

Factory inaugurated and in production: Jinan, China

New factory being built: ATC II Shanghai, China

SKF Global Technical Centers expanding in India and China

12 factories in Asia

Wuhu

Taegu

Jakarta

Mysore

Pune

HaridwarBusa

nJinan

Shanghai ATC+SSBC

Bangalore

Expansion in Asia

Shanghai ATC II


SKF Automotive

Lets move out…..


SKF Automotive

CMD 2013


Key business message


SKF Automotive – The way ahead

GrowthFast

growing markets

Engineering

partner

Winning customers

After-market


mentCost and

capitalefficien

cy

ProductivityOffers

for regional demand

Cost reductions


SKF Automotive – Driving profitable growth

Competitive advantages

• SKF brand

• SKF knowledge engineering

• Technology leadership

• Global presence; sales, engineering and manufacturing

• Value added products and solutions

Cost focus

• Reduce waste

• Adapt and adjust for low inventory cost

• Optimize product cost for optimized customer value

SKF BeyondZero portfolio

• Energy efficient solutions

• Credibility

• Life cycle management

• Calculations and measurements

• External audit/review

Growth drivers

• Fast growing markets

• Sustainability


SKF Automotive – Key business message, Sept 2013

Well positioned product portfolio, with clear positive environmental impact

Good growth sequentially

Improvements of order intake

Earnings recovering in first half 2013

Overall heading in the right direction


SKF Automotive

Open for questions…

Thank you

© SKF Group CMD 2013 SKF Automotive CMD 2013. © SKF Group CMD 2013.

Documents