SKF Industrial Market Strategic Industries - investors.skf…investors.skf.com/files/cmd2012/SI_Henrik-Lange.pdf · All time high sales for industrial gearbox and fluid power segments

SKF Industrial Market –

Strategic

Industries

Agenda

•Henrik

Lange, President

Strategic Industries

•

Kent Viitanen, DirectorRenewable Energy

•

Stephane

Le-Mounier, Director

Aerospace

Capture the full potential of the asset life cycle

SKF life cycle management

Strategic Industries strategy

•

Asset life cycle per industry

•

Geographic coverage

•

Organic growth

•

Acquisitions

•

New Market Offers

•

New technology

•

New processes

•

Green offers

•

Business Excellence•

6 Sigma•

Cost reduction (ICR)•

Asset utilization•

Manufacturing footprint

Market leadership & Profitable growth

Breakthrough innovation

Cost optimization & Flexibility

Railway

•

Passenger and locomotive

•

Freight cars

•

Aftermarket

Railway

9%

•

Geographically a broad based growth for the industry helped by strong growth in the freight related segment

•

Good success with metro projects such as Bombardier for Paris, Siemens for Warsaw, CSR for Shanghai

•

Big order for upgrade passenger coaches in China

•

First bearing company to have certified test centre in Russia

•

Continued growth in Europe

•

Good freight market development in China and recovery of high speed trains

•

North America stable on a high level

•

Globally strong freight market

Overview 2011 Achievement 2012 Outlook

Applying condition monitoring in railways

Metro Barcelona

Off-highway

10%

Off-highway

•

Continued growth through urbanization

•

Asia becoming centre of gravity

•

Expanding new products and technologies

•

Emission-

and efficiency regulations in key markets

•

Main seal supplier to JCB India new high-efficiency diesel engine

•

Launch of Agrihub

2 unitized agricultural machine bearing

•

Global supplier of CAT excavator drive-

and slewing bearings

•

Seal supply to John Deere heavy-

duty diesel engines in China

•

Customer-exclusive technology symposiums on transmission efficiency

•

Construction

•

Agriculture

•

Fork-lift trucks

•

Tunnel boring

Overview 2011 Achievement 2012 Outlook

Energy 13%

Traditional Energy

•

Oil prices keeping exploration activity strong

•

Natural gas prices remain very low despite resource expansion

•

Environmental regulations hasten move from coal to gas in OECD power generation

•

Non-OECD pushes ahead where coal is only viable option

•

Key Supplier Excellence Award received from National Oilwell

Varco 2011 (3rd time since 2006)

•

CEO contractor award for Safety Security Health and Environment Excellence 2011 from Thailand National Petroleum Exploration & Production

•

Won three significant contracts / extensions with BG Group, Maersk

and Chevron totalling SEK 30 million over contract life

•

Oil & Gas

•

Chemical processing

•

Electric power generation

Overview 2011 Achievement 2012 Outlook

SKF magnetic bearing technology

Statoil Subsea

concept

©

Statoil. Visualization of the sub-sea project

General industry 18%

Industrial Drive

•

Continued growth in Asia

•

Environmental regulations accelerate technological development

•

Energy efficiency importance increases

•

Drive for service-

and maintenance contracts

•

Received SKF Excellence Award for energy savings at customers in China using the Energy Efficient bearings (E2 DGBB)

•

Breakthrough at Spencer Turbine, received approval of magnetic bearings and permanent magnet motor for aeration blower

•

All time high sales for industrial gearbox and fluid power segments

•

Two unique SKF white papers accepted and presented at AGMA –

an important gearbox manufacturer association

•

Fluid power

•

Industrial gearboxes

•

Industrial electrical

•

Material handling

Overview 2011 Achievement 2012 Outlook

SKF E2 DGBB in centrifugal pumps

Calpeda

Precision

•

Asian market major growth driver for Machine Tool Industry

•

China, India and US main potential markets for Medical & Healthcare industry

•

Large opportunities for SKF Mechatronics

offering in the Automation Industry for riveting and welding robots

•

OEM Printing Industry in contracting phase

•

SKF Taiwan received best suppliers award from three Machine tool customers: Tongtai

Group, Honor and Hardinge

Taiwan

•

SKF CASM electric cylinders for industrial applications offer energy-

and cost-efficient alternative to pneumatic cylinders

•

Secured the Super-precision Bearings order for smart-phones new production equipment

•

Automation

•

Machine tool

•

Medical

•

Printing

Overview 2011 Achievement 2012 Outlook

Special industrial machinery

17%

Lubrication

2012 Outlook2011 AchievementOverview

•

Enhanced new product innovations

•

Increased focus on key developing segments (Agriculture, Oil & Gas)

•

Accelerating Latin America growth

•

Integration and synergy-building continue according to plan

•

Continued good growth in North America

•

Awarded SKF Excellence Award for innovative noise reduction offering developed for Deutsche Bahn

•

Received “World Class”

shipping performance award from Caterpillar Decatur

•

Integration work progressing as planned

•

Off-highway

•

Renewable

•

Machine Tools

•

Metals

Lincoln Progressive lubrication system for fleet

VRL Logistics fleet operator

BeyondZero

offers

Servo actuator for industrial automation applications

The SKF E2DGBB for electrical motors

The SKF Nautilus for wind turbine main shafts

SKF solar linear actuator for solar tracking

Performance 2010 –

2012 YTD

2010

Net

sales

Operating margin

17 210 SEKm

20 807SEKm

5 223SEKm

5 375SEKm

13.3% 13.9% 15.1% 12.0%

2011 Q1 2011 Q1 2012

Demand outlook for Q2 per segment

Sequential trend

Slightly higher +

Higher ++

Main segments

Industrial, General + Special

Industrial, Heavy + Off-highway

Energy

Aerospace

Railway

Key business message –

Strategic Industries

• Continue to create and capture value through the full asset life cycle in all industries served

• Drive effective account management with a strong key account management structure

• Speed up innovation to launch more new offers with economic and

environmental value

• Continued focus on cost optimization and flexibility through implementing Business Excellence & ICR

• Attract and retain the right people

• Continue to deliver profitable growth

SUPPLIER CHANNEL CUSTOMER

WE

STAN

DAR

DIS

ED W

ORK

RIG

HT

FRO

M M

E

WE

CARE

DEM

AND

DRI

VEN

FLO

W

CON

TIN

UOU

S IM

PRO

VEM

ENT

SUPPLIER CHANNEL CUSTOMER

WE

STAN

DAR

DIS

ED W

ORK

RIG

HT

FRO

M M

E

WE

CARE

DEM

AND

DRI

VEN

FLO

W

CON

TIN

UOU

S IM

PRO

VEM

ENT