SKF Capital Markets Day

SKF Capital Markets Day Alrik Danielson Industrial Market

• SKF Industrial Market • Strategy

• New structure

• Create and capture customer value • Competitiveness

• Success stories

• World class manufacturing

• Summary

Agenda

© SKF Group

SKF Industrial Market business

Customer Segment

Industrial bearings

market shares

Automatic Lubrication Systems

market shares Top customers

Sales by region

SKF

Beka

Groeneveld

LUBE

Perma-tec

Bijur Delimon

Other 150+ competitors

42.7 BSEK

2014

8. OTHERS

7. CHINESE

6. JTEKT 5. TIMKEN

4. NTN

3. NSK

2. SCH

1. SKF

© SKF Group

Industrial Market strategy same as SKF Group’s

Our priorities Our competitive edge

Create and capture

customer value

Application

driven innovation

World class

manufacturing

Cost

competitiveness

Maximize cash

flow over time

Our foundation

Geographies

Technologies

Industries

1

2

3

4

5

© SKF Group

New and simplified organization

• No Matrix

• Reduced organizational complexity and fragmentation

• More cost efficient structure

• Accelerated creation and capturing of new value propositions

+

One Industrial Market organization

© SKF Group

Create and capture customer value…

• Customers first in everything we do

• We do what the customers value and are

ready to pay for

• Increasing customers’ productivity and

profitability through value solutions

• Meeting customers’ expectations with the right

product and solution

• Driving quality and service level to perfection

• Striving for an unbeatable customer

experience

© SKF Group

… with application specific products and solutions

High- end

Mid-market

Low-end

© SKF Group

Customer and application driven innovation…

• Industry and application focus

• Having the best application and field performance knowledge in the industry

• Working with the industry’s leaders

• Understand industry trends and customer challenges and translate into value propositions

• Drive innovation for productivity, sustainability and cost

Asset lifecycle offering for each

industry:

OE and aftermarket

© SKF Group

…provides a unique portfolio for more customer value

Machine health Re-manufacturing Application engineering Reliability engineering

© SKF Group

IM Sales and Marketing priorities

Leading and preferred

Distributor partner

in the industry

© SKF Group

SKF distributors becoming value chain partners

• Active promoting of the full SKF product and solutions portfolio

• Improving value and reducing total cost for customers & SKF

• Improving customer asset efficiency and machine availability

2 November, 2015 Slide 11

Sales planning and

opportunity management Education

Supply chain efficiency Certified service and

expert partners

Meeting the challenges of a changing distribution environment

© SKF Group

Faster access to SKF seals through SKF distributors

Distributor can handle complete seal

packages: standard seals, low demand machined seals, high

demand machined seals via co-operation with local SKF unit

Quick availability of standard replacement

seals, also, in non standard main dimension

Seals in SKF quality

Application engineering support from SKF

SKF Seal Jet for machined seals

Seal Jet enables to

machine industrial seals (< 200 mm)

without any moulds or other tooling

© SKF Group

Sales and Marketing: 8 Geographical Sales Areas

2 November, 2015

l

Customer Service

Application Engineers Industries and

Strategic Accounts

SKF Distributors

Technologies