11 May 2010 1
Jan 05, 2016
11 May 2010
1
The SKF Group
Tom Johnstone
President and CEO
11 May 2010
3Programme – 11 May 2010
08:45 Welcome and introduction Tom Johnstone President and CEO
09:00 SKF in Asia Rakesh Makhija President, SKF Asia
09:15 Automotive overview Tryggve Sthen President, Automotive
Division
09:30 Summing up and Q & A
10:10 Global Technical Centre China Christopher Ancona
Manager, GTCC
10:25 Preparation/informationfor the factory tour Richard Mh Yang Factory manager
10:35 Factory tour and lunch
12:00 Depart from SKF to Volvo
11 May 2010
4Key points, Q1 report
• Strong operating profit and marginSEK 1,702 m versus SEK 768 m previous year11.8% versus 5.2% previous year
• Production levels increased during the quarter Significantly higher year over year.
• Sales in local currency:Industrial Division: -12.1%Service Division: +8.2%Automotive Division: +26.2% Negative price/mix influenced by higher automotive sales versus industrial market.
• Improving demand outlook for Q2Significantly higher compared to Q2 2009Slightly higher sequentially compared to Q1 2010
• Manufacturing levelSignificantly higher year over yearHigher compared to average Q1 2010
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• Inauguration of two new factories in India:
- The Haridwar factory will manufacture deep groove ball bearings and primarily
serve the two-wheeler market and the vehicle service market in India. Total
investment: around SEK 250 million.
- The Ahmedabad factory will manufacture medium to large size bearings ofvarious types to serve customer segments such as wind energy and
heavy industries. Total investment: around SEK 450 million.
• A programme was concluded in March for adjusting the manufacturing capacity in Gothenburg, Sweden. The total cost of these activities is around SEK 90 million and the benefit of these actions will be around SEK 50 million per year.
• The ninth SKF Solution Factory was inaugurated in Houston, USA
Highlights 2010
Photos
11 May 2010
6Volume trends(based on current assumptions)
Daily volume trends for: Q1 2010 Q2 2010
Net sales2009
Europe51%
North America
17%
Asia Pacific23%
Latin America
6%
Total
Outlook Q22010 vs
2009
++
++
+++
+++
+++
11 May 2010
7
7%
14%
7%
5%
22%
16%
12%
11%
3%
3%
Aerospace
Cars
Energy
Railway
Industrial distribution
Industrial OEM,
General+Special
Vehicle Service Market
Industrial OEM, Heavy + Off-
highway
Trucks
Electrical and two-wheeler
Sequential volume trend main segments Q2 2010(based on current assumptions)
Net sales 2009
11 May 2010
8Volume trends, Divisions(based on current assumptions)
Daily volume trends for Q2
2010
Net sales2009
Industrial34%
Service35%
Automotive29%
Total
Outlook Q22010 vs
2009
+
+++
+++
+++
11 May 2010
9Key focus areas ahead 2010
• Profit and cash flow
• Adjustment of manufacturing output to new demand levels
• Growing segments and geographies
• Strengthening the platform/segment approach
• Competence development
SKF Care and Six Sigma as guiding lights
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1310
13
24 2321
People Tangible assets Net sales
Asia in percent of Group
2000 2009 2000 2009 2000 2009
11 May 2010
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1310
13
24 2321
People Tangible assets Net sales
Asia in percent of Group
2000 2009 2000 2009 2000 2009
11 May 2010
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