Automotive and Aerospace. Bernd Stephan, Capital Markets Day 29.Nov. 2018

Transcription

1 Automotive and Aerospace Bernd Stephan, Capital Markets Day 29.Nov. 2018

2 SKF Automotive and Aerospace China South America A&A Sales by region A&A footprint A&A Product portfolio Revenue 27 BSEK Employees Auto bearings market shares India Rest of Asia SCHAEFFLER Other North America West Europe East Europe Standard Brgs Seals Compo sites AM Brg Specials Aero Brg Specials ILJIN TIMKEN OTHERS CHINES E JTEKT SKF NTN NSK Nr.1 in HBU Nr.4 in Auto brgs Nr.6 in Seals NSK JTEKT Top customers Aero bearings market shares OTHERS CHINESE NTN MINEBEA TIMKEN SKF SCHAEFFLER Nr.1 in Aero brgs Top 3 in Composites Nr.5 in PED & seals AMERICAS 11 locations EUROPE 15 locations ASIA 6 locations Muskegon, USColebrook, US Elgin, US Falconer, US Elgin, US Baltimore, US VP Hebron, US Ladson, US Puebla, MEX Guadalajara, MEX Zapopan, MEX Valenciennes, FRA Stonehouse, UK Leverkusen, GER Clevedon, UK Muhlheim, GER St Cyr, FRA Lons Le-Saunier, FRA VP St. Cyr, FRA Kalofer, BUL Tudela, ESP Airasca, ITA Villar Perosa, ITA Varese, ITA St.Vallier, FRA Villanova, ITA VP Poggio Rusco, ITA Daegu, S.KOR Shanghai ATC1 & ATC2, CHN Busan, S.KOR Wuhu, CHN Vehicle parts ATC, CHN Mysore, IND VP Singapore AERO 12 Factories Cajamar, BRA Vehicle parts, BRA AUTOMOTIVE 9 Factories & 6 VP Kitting centers SEALING SOL. 10 Factories

3 Automotive Bearing Business Unit Turnaround Plan delivered

4 Profitability development 2018 AUTOMOTIVE BEARING BUSINESS UNIT TURNAROUND PLAN DELIVERED Automotive Operating profit 0 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Excellent profitability development in most markets US tariff effect compensated Strong growth in (NEV) New Energy Vehicle segment

5 Gearing up for the future

6 Gearing up for the future 1 Capture customer value New product offering for New Energy Vehicles (NEV) Convert market trends in new business models 2 Profitability management Strong customer and product portfolio management 3 Innovation leadership Convert market & technology trends into new product portfolio Leadership in friction & weight reduction 4 Cost reduction Design-to-cost Competitiveness through continuous added value & purchasing cost reduction 5 Organizational efficiency & effectiveness Strengthen Business Unit concept Implement World Class Manufacturing (I 4.0) Business Process digitalization Targeting robust operating margin over business cycle

7 Delivering value through a strengthened organisation Automotive & Aerospace Automotive Bearing Business Unit VSM Business Unit Sealing Solutions Business Unit Aerospace Business Unit Separated OEM and Aftermarket Business Units => more focus Business Units dedicated to market segments Strengthened BU mgmt in Aerospace and Seals

8 Strategic repositioning 2018 and beyond 1. Maintain leading position as expert & cost competitive supplier 2. Delivering increased value to customers with a focused leadership 3. Profitability improvement plans Automotive Aerospace Innovation focus on new energy vehicles (NEVs) for bearings and seals Launching additional product lines in the aftermarket and broaden assortment Footprint optimization for supply base North America footprint for Seals (USA to Mexico) Strong growth in 2018/2019 Focus on profitability improvement Implementation of Industry 4.0 technology in factories North American footprint optimization

9 Innovation drivers Reduced emissions & CO 2 targets for ICE powertrain Light weighting new designs & materials Mechanical system efficiency further friction reduction New Energy Vehicles (NEV) Electrification application specific products & solutions - - Hybrid bearing development Acquisition of ceramic powder manufacturing VESTA More investment in ceramic ball and roller production High speed, low noise bearings & seals Bearing sensor technology for autonomous driving New products for electric driven accessories Energy efficient aero engines. Weight reduction in Airframe New bearing technology New World class Manufacturing (I 4.0) Light weight materials for Airframe products

10 Worldwide harmonized Light vehicle Test Procedure (WLTP) New worldwide CO 2 test cycle NEDC vs WLTP Effective September 01, 2018 Based on real-driving data of 12 countries in 3 continents (Asia, EU, USA) matching better on-road performance Effect on vehicle sales 2018 Q3 Designed in the 1980 s Based on theoretical driving Has become outdated Effective Sep 2018 Based on real driving data Better matches onroad performance For new vehicles, all engine / transmission / chassis / tire combinations need to be tested and certified OEMs started certification process too late Significant drop in EU vehicle sales for Volkswagen Group in Sep 2018 (-41%)* /Oct (-19%) due to lack of certified WLTP vehicles, other OEMs less affected *

11 Focus areas

12 Key focus areas Automotive OEM Product focus on bearings, seals and modules. NEV. Not a systems supplier & not competing with our OEM & Tier 1 customers Automotive Aftermarket New product lines & broader assortment Global Business Unit. Right product portfolio. More chassis than engine. B2C implemented. Aerospace Extremely high sales volume growth. Footprint optimisation. Ramp up of new I4.0 production channels. Cost Pricing Innovation

13 SKF Automotive (OE bearings and seals) Dramatic changes in automotive propulsion system for cars, trucks and buses in next 10 years. Business opportunities for SKF Automotive to gain rolling bearing and seals business by offering right product technology. Strategic direction to remain in the component and module business avoiding competition with our customers. SKF Automotive Bearing NEV content Chassis MSBU Wheel HBU Powertrain PWT Total

14 SKF Aftermarket Re-establishment of global business unit Keeping you mobile! Tailor and offer the best assortment Steering & suspension, driveshaft.. Outpace market growth Increased focus on efficiency and costs Cost Initiative Purchasing Improve profitability Digitalise distribution and sales channels Amazon, KFZ- Teile24, Be ready for disruption

15 SKF Aerospace Focus on airframe, MRO, helicopter Profitability management New market offer o Airframe & composite material o Wing of the future o MRO repair market World Class Manufacturing o Four new I4.0 channels in 2018 /19 o Cost reduction on OEM business o Foot print optimization Cash Flow management o Inventory management o Supply chain o Material flow simplification

16 Conclusion SKF Automotive & Aerospace is delivering high performance and high quality products and solutions that help customers gear up for the future.

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