October 30, 2007 SKF Group Slide 0
India & SKF
Power of Knowledge Engineering
Shishir Joshipura Managing Director, SKF India AGM, Mumbai
Dun & Bradstreet Rolta award Top company in Bearing Sector- 2009
Economy15% 10% 5% 0% -5% Agriculture Indus try Se rvic es GDP
G DP ( 2009-10)
Q1 2.4% 5.0% 7.8% 6.1%
Q2 0.9% 8.3% 9.3% 7.9%
Q3 -2.8% 11.6% 6.3% 6.0%
YTD -0.2% 8.3% 7.8% 6.7%
GDP Contribution 2009-10, (YTD Q3) Industry 29%
10% 8% 6% 4% 2% 0% -2% Jan 2009 5.0% Fe b 3.5% Mar 1.2% Apr 1.3% 9.6% May
Inflation (WPI)2009 (Jan-Apr): 2.7 % 2010 (Jan-Apr): 9.7 %
Agriculture 15%
Services 56%
Source : CSO / CMIE
Jun
Jul
Aug
Se p
Oc t 1.5%
Nov 5.6%
De c 8.1%
1.4% -1.0% -0.5% -0.2% 0.5%
2010 9.4% 10.1% 9.9%October 30, 2007 SKF Group Slide 2
IndustryIIPIIP- General20% 15% 10% 5% 0%ar -0 9 n09 g09 De c09 10 O ct -0 9 Fe b-
Growth of six Infrastructure Industries
13.5%
10% 8% 6% 4% 2% 0% Mar-09
Mar10 : 7.2 % Jan-Mar10 : 7.2 %
7.2%
Ju
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
IIP- Manufact uring20% 15% 10% 5% 0%Ju n09 ar -0 9 ug -0 O ct -0 Fe b-
Au
M
14.3%
IIP- Sector wise Growth rates IIP Mining Manufacturing Electricity 2009 0.3% 1.9% -0.3% 6.3%
Mar 2010 13.5% 11 % 14.3% 7.7%
YTD (Jan-Mar) 2009 0.5% 0.9% 0.3% 3% 2010 15.1% 12.4% 16.1% 6.7%
-5%
M
D
A
ec -0 9
10
9
9
October 30, 2007 SKF Group Slide 3
Source : CSO
India - GDP9.3% 9.9% 12% 9.0% 8.5% 8.5%7.6 % CAGR
7.9 % CAGR
7.5%
4.4%
5.8%
8%
4%
3.8%
6.7%
7.2%
8.3%
0%20 00 -0 20 1 01 -0 20 2 02 -0 20 3 03 -0 20 4 04 -0 20 5 05 -0 20 6 06 -0 7 20 07 20 8 08 -0 20 9 09 -1 20 0 10 -1 20 11 1 -2 01 2
CAGR (2000-01 to 2008-09) Agriculture Industry ServicesAgriculture Industry Services
CAGR (2008-09 to 2011-12) 2.2 % 7.2 % 9.7 %
3% 7.5 % 9.3 %
300 250 200 150 100 Trillion Rs 50 0-0 1 -0 2 20 02 -0 3 20 03 -0 4 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 20 8 08 -0 9 20 09 -1 20 0 10 -2 01 20 1 11 -2 01 2 20 01
Source: HSBC India Forecast 2010 (15th Jan 2010)
20 00
October 30, 2007 SKF Group Slide 4
SKF India Annual SalesTotal Sales Development (MINR)18000 15000 12000 MINR 9000 6000 3000 0 2004 2005 2006 Year 2007 2008 2009
15683 13425 7814 5813
16202
15709
October 30, 2007 SKF Group Slide 5
SKF India Results 2009 vs 2008
MINR
2009 15709 1475 9.4% 1431 943 17.9
2008 16202 1790 11.0% 1944 1277 24.2
Net sales Operating profit before exceptional items Operating margin before exceptional items Profit before taxes Net profit Basic earnings per share, Rs
October 30, 2007 SKF Group Slide 6
First Quarter 2010 - MINR
October 30, 2007 SKF Group Slide 7
Key FiguresReturn on Equity (Annualised)2325 20 35 30
EPS (Annualised)33.1 24.2
19.8
13.215
25 20 15
17.9
10 5
10 5 0 2008 2009 Q1 2010
0
2008
2009
Q1 2010
EBITDA /Sales13.9 12.814 12 10 8 6 4 2 0 35 30 25 20 15 10 5 2008 2009 Q1 2010 0
Return on Capital Employed (Annualised)29.9 33.7
10.2
19.2
2008
2009
Q1 2010
October 30, 2007 SKF Group Slide 8
SKF India Manufacturing FootprintPuneUttarkhand DGBB Plant
-
TRB, DGBB, HBU, Textile Components, MSBU New HBU1T channel Spindle Service Center Solution Factory Small DGBBs VAS Manufacturing Application Development Center Seals GTCI
Bangalore
Ahmedabad LSB Plant
PUNE DGBB, TRB, HUB, CRB, MSBU
Haridwar- Small DGBBs (Inaugurated on 7th April 2010)BLORE (2) DGBB, Seals
Ahmedabad- Large Size Bearings (Inaugurated on 8th April2010)
- Medium CRBMajor industrial clustersOctober 30, 2007 SKF Group Slide 9
SKF Platforms
October 30, 2007 SKF Group Slide 10
Solution Factory - Pune
Inaugurated on : 3rd November Services: bearing remanufacturing, spindle Industries: Heavy Industries
services. customized product services & sealing solutions, remote diagnostics, Lubrication systems
October 30, 2007 SKF Group Slide 11
Global Testing Center - Bengaluru
Inaugurated on : 4th November Services: Testing new applications beingdeveloped for customers Sealing Solutions
Industries: Two Wheeler, Automotive and
October 30, 2007 SKF Group Slide 12
Haridwar Plant Inauguration
Inaugurated on : 7th April Product line: Deep Groove Ball Bearings Industries: Two Wheeler & Automotive AfterMarket
Investment : INR 1500 Million (SEK 250 m) Employment Opportunity : Around 200 people
October 30, 2007 SKF Group Slide 13
LSB Factory - Ahmedabad
Inaugurated on : 8th April Product line: ID Large Size Bearings Industries: Railways, Wind and Heavy industries Investment : INR 2700 Million (SEK 450 m) Employment Opportunity: Around 300 people (full capacity).
October 30, 2007 SKF Group Slide 14
Automobile Sales Commercial VehiclesCV Domestic Sales80 60 40 20 0
Domestic Sales growth Company Tata Ashok leylandJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan-Apr10 63.2 % 177.9 % 87 % 123.3 %
M&M Eicher
2009 23,154 31011 41,797 29842 30800 36193 37624 40624 45451 42562 40,847 48,614 2010 53,447 58024 67,362 49086
CV Domestic Sales (Jan- Apr 2010)T ata Mot ors 58% M&M 17% Ashok Leyland 13% Others 7% Eicher 5%
October 30, 2007 SKF Group Slide 15
Source : SIAM
Automobile Sales Passenger Cars, UVs & MUVsPV Domestic Sales200 150 100 Thousand Nos 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Decsan Thou d No
Domestic Sales growth Company Maruti Tata Hyundai M&M Jan-Apr10 17.8% 41.5 % 35.2 % 8.7 %
s
2009 137380 145,166 165158 136026 140823 140243 147642 152100 167524 168043 166653 149097 2010 187605 194,548 199109 182181 PV Mkt Share (Jan- Apr, 2010) Toyota 3% Ford 3% Honda Siel Others 4% 3%
Hyundai Motor 16% Tata Motors 16% Maruti Suzuki 42%
M&M 7%
General Motors 6%
October 30, 2007 SKF Group Slide 16
Source : SIAM
Automobile Sales 2 WheelersTwo Wheeler Domest ic Sales900
Two Wheeler Domest ic Sales (Jan- A pr 2010) T VS 14% Honda 14% Ot hers 2%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
600
Suzuki 2%
Yamaha 2%
300
0
2009 581729 630838 654010 700987 727937 706937 719668 776777 838150 750229 790613 767796 2010 834383 837653 920133 855670
Bajaj Aut o 21%
Hero Honda 45%
Domestic Sales growth Company Hero Honda Bajaj TVS Honda Mcy. Jan-Apr10 13.4 % 106.2 % 27.4 % 38.8 %
October 30, 2007 SKF Group Slide 17
Source : SIAM
Core IndustriesCore Infrastructure IndustriesElectricity Generation70 Thousand Gwh 65 60 559 0 l-0 9 9 9 ar -0 n10 9 No v0 Se p0 ar -1 -0 ay JuhMar10 : 7.8 % Jan-Mar10 : 7.3 %
Coal60 Million Tonnes 40 20rMa 09 M 9 -0 ay Ju l-0 9 9 -0 ep S
Mar10: 7.8 % Jan- Mar10 : 6.9%
Finished Carbon Steel52 Lakh tonnes 48 44 40Mar 10 : 9.2 % Jan- Mar10 : 8.5 %
Ju l-0 9
rMa
M
Ja
M
M
M
Crude Petroleum35 Lakh Tonnes 30 25 20l-0 9 ay -0 9 Se p09 Ja n10 ar -1 0 v09 Ju NoMar10 : 3.5 % Jan- Mar10 : 5.7 %
Petroleum Refinery Products150 140 Lakh Tonnes 130 120 110 100Mar 10: -0.4 % Jan- Mar10 : 1.4%
Cement200 180 Lakh Tonnes 160 140 120Mar10 : 7.8 % Jan- Mar10 : 9.3 %
No v09
Se p09
M
Ja n10
M
October 30, 2007 SKF Group Slide 18
Source : CSO
M
9 9 -0 r-0 ay Ma M
0 9 10 09 09 l-0 r-1 vnpJu Ja Se No Ma
ar -0 9
ar -0 9
Ju l-0 9
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ay -0 9
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M ar -1 0
M ar -0 9
No v09
Se p09
Ja n10
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Gw sand Thou
9 -0 ov N
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10
SKF Offers for the India marketMain shaft housings, local production Main shaft bearings, import a local production
WindCon at test phase with some turbine manuf.
Pitch and Yaw, local production planned
Generators: MDGBB local Insocoat and XL Hybrids import
Gearbox bearings, import a local production
Lubrication systems, local production
Seals: Activity started, mapping done. Seals from Europe
Other opportuntites: Grease, Hydraulic pitch plain brgs... etc. Imported.
October 30, 2007 SKF Group Slide 19
India Wind development, MW7000 6000
2500 2200
5000 4000 3000 2000 1000 0 FY 08 FY 09 FY 10 FY 11 FY 12
2000 1719 2052 1201 1103 1542 1258 2035 2377 1301 3000 3700 4100
1611
FY 13
FY 14
FY 15
Source : SKF Estimates based on moderate growth for Suzlon and conservative scenario projections from Wind manufacturers
India Installations
ExportsNote : FY 09 means a period from Apr 08 Mar 09
October 30, 2007 SKF Group Slide 20
SKF 2009 Business SnapshotTrident Group Integrated Maintenance Service Contract with bearing supply & training Century Pulp & Paper Online Condition Monitoring system Sealed contract for the supply of main shaft bearings with leading energy infrastructure companies Established Oil Analysis Lab at Bharti Vidyapeeth College of Engineering First order for seals in caster segment along with ECONOMOS New Castor line-opportunity for seals Power Generation Supply & Commission of Online CoMo System for the entire BOP of two grass root NTPC power projects Mechatronic solution : Hero Honda, Delhi Steering column bearing : Honda motorcycles and scooters, India and Thailand
One Way Clutch for 2 Wheelers: TVS Motors Hosur and Bajaj, Pune
Joint development of Energy Efficient motor: Texmo Industries, Coimbatore
Awarded by SKF AP with Best Overall Score for CMP Step up 2009
October 30, 2007 SKF Group Slide 21
New LaunchesFORD FIGOVersions Non ABS ABS Front BAH0109B BAH-0106 Rear BT1B329013 BTH-1206 AB BB1-3374 Rear Axle M&M Xylo BT1-0702 Front wheel Inner - Eicher Canter 50KW 6313-2RS1/C3HTVT193 : Rear Wheel - Tafe tractor M241 / Eagle
TATA NANOBelt Tensioner UnitARB-1323
Center support kits : 2516/2518 Models QA 81002 KQ 71003 UJ Kit : 2516-3516 - RSB Model VKUA 99502
New Crossover Vehicle HBU1-T (Front & Rear) (BTH 1024)October 30, 2007 SKF Group Slide 22
TATA ARIA
VKM 17801( Indica Belt Tensioner )
Maruti 800 Belt tensioner unit
Indica Belt tensioner unit
SKF India Community Projects
We continue to run CSR projects SKF Sports Academy Cricket, Football &Hockey
Nachiket Balgram Udyogdham Rainwater harvesting
October 30, 2007 SKF Group Slide 23
SKF Sports Academy 100 boys and girls - joyful, energetic and full of dreams- participate inthe coaching sessions held regularly at our Pune plant.
The sports academy provides a platform that allows the children todirect their energies into a constructive and productive activity
SKF Sports Academy Girls Hockey Team has won the three
tournaments in Pune in 2009-10. Girls have selected for state teams to represent Pune district in various tournament
One of the football player Vikas Zanze was selected for National School
football championships (National Junior Championships). This tournament was held in Sagar (Madhya Pradesh) in November 2009. Vikas has cleared two stages of selection where competition was very tough. He was captain of the SKF Team when our boys participated in Gothia Cup, July 2007 - Gothenburg Sweden. He scored 3 goals in total 5 matches played
October 30, 2007 SKF Group Slide 24
October 30, 2007 SKF Group Slide 25