Create and capture customer value Franco Ferro Franco Ferro Director Bearing Sales
Create and capture customer value
Franco Ferro
Franco Ferro
Director
Bearing Sales
© SKF Group
Light vehicle market development
3 November, 2015 Slide 20
87.397
W.EU
441
N.Am
184
-666
746
Asia 2014 L.Am CEU
-155
167
Other
88.114
2015
+1%
102.297
2020 2018
96.927
2016
+3%
88.114
2015
90.249
Source: IHS Automotive Oct 2015
CAGR
x1000
Global Car and Light truck production 2015 Market Development Global Car and Light truck production 2015
N. AM
16%
20%
W.EU
7%
Other
CEU
8% 4% L.AM
46%
Asia
© SKF Group
Heavy vehicle market development
3 November, 2015 Slide 21
-9%
2015
2.498
Other
2
CEU
-12
L.Am
-47
Asia
-247
N.Am
30
W.EU
36
2014
2.736 +8%
2020
3.592
2018
3.182
2016
2.592
2015
2.498
CAGR
x1000
N. AM 22,3%
W.EU
16,2%
CEU
4,4%
L.AM
3,8%
Asia
53,1%
Source: National sources; Industry sources; LMC Automotive; ACT Research, Trucks >6 GVW (Gross Vehicle Weight)
Global Heavy truck production 2015 Market Development Global Heavy truck production 2015
© SKF Group
Meeting customer needs
3 November 2015 Slide 22
Energy efficiency
• Friction reduction
• Weight reduction
Safety
• Accuracy
Comfort
• Noise
• Precision
© SKF Group
Applications • Wheels
• Suspensions
Linking sales to strategy
3 November 2015 Slide 23
• Strategic customers
• Global priority
management
• Local development
capabilities
Customers • Winning/Leading
• Emerging countries
• Emerging technology
Core capabilities • Friction reduction
• Weight reduction
• Condition Monitoring
Create and capture
customer value
Application driven
innovation
Sales focus areas
© SKF Group
Wheel bearing value development
3 November, 2015 Slide 24
100
175
>225
+125%
Standard wheel bearing configuration Value development (indexed)
Gen. 1
90s
2000s
>2015
Gen.2 Gen.3
© SKF Group
New business and effect from strategic refocus on wheel bearings
3 November 2015 Slide 25
Asia
Europe
52%
28%
Americas
20%
Developed
markets
Emerging
markets
72%
28%
Market share contribution of taken orders 2015
Market
share
(Wheel
bearings)
Indexed
sales
24% 20%
Strengthened leadership in wheel units through
sales far above the market growth with significant
increase of market share
Customer origin
Market location
138
100
2020 2014
20 18
Profitability contribution
145 The businesses
gained only in 2015
cover >35% of the
growth
High end and premium focus
Innovation content and design competence
Local development and manufacturing footprint
leverage
© SKF Group
Suspension bearing unit evolution
3 November 2015 Slide 26
Efficient: better use of material
Compact: lower systems weight
Competitive: right balance between cost and functions
Flexible: to adapt easily to surrounding components
Performance: seal design included inside bearing
Value proposition Evolution path
Reinforced market and
technology leadership
© SKF Group
New business and effect from strategic refocus on suspension bearings
3 November 2015 Slide 27
Asia
Europe
80%
10%
Americas
10%
Developed
markets
Emerging
markets
80%
20%
Market share contribution of taken orders 2015
Market share
(Suspension
bearings)
Indexed
sales
36% 25%
Consolidated global leadership in suspension
bearing units through sales step above the
market growth with significant increase of market
share in Asia
Customer origin
Market location
138
100
2020 2014
20 18
Profitability contribution
200 The businesses
gained only in 2015
cover 50% of the
growth
High end and premium focus
Innovation content and design competence
Local development and manufacturing
footprint leverage
© SKF Group
Why Geely chooses SKF
• Latest world leading technology
• High quality products and competitive cost
• Speed – fast response time
• World class supplier – valued brand
• Local engineering and manuf. capabilities
Building on brand value with Geely Automobile
Geely
• One of the largest Chinese vehicle manufacturers
• Building a premium brand image
SKF solutions
• Wheel hub bearing unit gen. 3
• MacPherson suspension bearing unit
• Transmission bearings (deep groove ball bearing, bearing retainer)
• Transmission seal (low friction bonded piston seal)
• Engine seal
3 November, 2015 Slide 28
© SKF Group
Why Volvo Cars chooses SKF
• Advanced engineering
• Global footprint
• Quality brand
• Trust and reliability
Driving reliability and performance with Volvo cars
Volvo Cars
• Premium car manufacturer
• Innovative project with self-driving cars
SKF solutions
• Wheel hub bearing units gen. 3
• MacPherson suspension bearing units
3 November, 2015 Slide 29
© SKF Group
Why Scania chooses SKF
• Advanced engineering skills and trust
• Reliable partner in development projects to reduce total cost of ownership for truck owners
• Energy eff. focus and sustainable approach
• Global footprint
High efficiency developments with Scania
Scania
• Truck and bus manufacturer
• High quality brand
• Strong focus on sustainability
• Ecolusion – promotes economic and safe driving
SKF solutions
• Special bearing unit for wheel end
• High pressure valve stem seal for engine
3 November, 2015 Slide 30
© SKF Group
We have now what it takes!
New operational model
Focused resources
Continuously reducing cost
Turn around plan
Strategic repositioning
Strengthening technical leadership
Strengthening value proposition
3 November, 2015 Slide 31
This will take
us to 8%
Operating Margin
© SKF Group
Q&A
3 November, 2015 Slide 32