SKF Capital Markets Day 2012

Transcription

1 SKF Capital Markets Day 2012

2 SKF Capital Markets Day 2012 Tom Johnstone President and CEO

3 Agenda Business update BeyondZero portfolio SKF in Asia

4 Business update

5 Business update Q1 summary Outlook Focus areas 2012 and initiatives

6 SKF Group Q Financial performance Q Q Net sales, SEKm 16,931 16,702 Operating profit,sekm 2,140 2,504 Operating margin, % Profit before tax, SEKm 1,981 2,318 Cash flow, SEKm Organic sales growth in local currency: SKF Group: +1.1% Europe: -1.2% Industrial market, Strategic Industries: +2.5% North America: +14.7% Industrial market, Regional Sales and Service: +3.0% Asia: -8.1% Automotive: -4.2% Latin America: +11.1% Key points Manufacturing was significantly lower y-o-y Inventories were reduced to 20.5% of sales New business gained, SKF Apps launched

7 Demand outlook for SKF s products, solutions and services - Regions (based on current assumptions) Share of net sales 2011 Sequential trends for: Q Q Q vs Q Europe 46% Asia Pacific 26% +/- +/- North America 19% +++ Latin America 6% +++ Total +

8 Key focus areas ahead 2012 Managing the uncertain and different demand environment -regions and segments Profit and cash flow - inventory management Initiatives and actions to support long-term financial targets Continue the integration of Lincoln Business Excellence and competence development Implement the new organization for the Industrial market One SKF and SKF Care as guiding lights

9 Main initiatives going forward Accelerate profitable growth - Platform/segment approach -New offerings,green - Value based selling, DSP - Strengthen service business - Faster growing regions/segments - Develop other brands Reduce cost and eliminate waste - Business excellence - BCC manufacturing and sourcing - Integrated cost reduction, ICR, activities Invest for growth - Sales and engineering resources - Factories in growth markets - Solution factories -R&D -Acquisitions

10 R&D main areas and investments Main areas Environment Core technologies New products Strengthen R&D activities in fast growing regions Strengthen links with universities and high schools Investments % 2009 Same % % Patents +30% %

11 New SKF University Technology Centre in Sweden Chalmers University, Gothenburg Technology centre for sustainability and environment Technology University, Luleå Technology centre for condition monitoring and asset management Photo: Robin Olsson Photo: Karl William

12 Examples of new products launched in 2012 Servo Actuator for industrial applications A hand-held, 18-volt, lithium-ion grease gun Next generation SNL, SE housings SKF Solar Hub SKF Thruster Monitoring SKF Compact Wire Steering Bearing SKF Speed Sensor Unit Integrated monotube seal SKF Bus Door Actuator SKF Nautilus range extensions

13 Lubrication system New 18-Volt Lithium Ion PowerLuber grease gun. Lincoln 653 pump is part of the Centro-Matic automatic grease lubrication system. The new oil-based system SKF micro-dosage for lubrication of high-speed spindles.

14 General Bearing Corporation Established in 1955, headquarter in West Nyack, NY, USA. Four factories in China, one ball bearing factory, two tapered roller bearing factories and one precision roller factory. 1,750 employees, 140 are located in USA and 1,610 in China. Sales in 2011: around USD 155 million Focused to serve OEM and end-user customers within the transportation markets: Truck, Trailer, Automotive, and Industrial. Brands:

15 BeyondZero portfolio

16 BeyondZero TM What is BeyondZero? SKF BeyondZero portfolio SKF BeyondZero climate strategy

17 Preserving and protecting our natural resources Air Earth Water

18 BeyondZero TM 0 Reduce the negative environmental impact from our own operations and those of our suppliers. Suppliers SKF Manufacturing Transportation Scope 2 Scope 1 Scope BeyondZero Customers: SKF BeyondZero portfolio Innovate and offer our customers new technologies, products and services with enhanced environmental performance characteristics.

19 BeyondZero portfolio how it works DESIGNED FOR Criteria Life cycle trade off s Base line comparison CO 2 / environmental savings Total direct CO 2 savings Total revenue APPLIED FOR Total enabled CO 2 savings Total revenue

20 BeyondZero portfolio - Industrial SKF Energy Monitoring Service for pump systems helped reduce 1,700 tonnes of CO 2 emission per year. SKF ConRo reduced CO 2 emissions with 1.5 tonne per unit and year. SKF Solar Linear Actuator contributes to increasing the energy production from one solar panel which 4.4 tonnes CO 2 /year.

21 BeyondZero portfolio - Industrial Replacement of hydraulic lifts with two SKF CASM electric cylinders produced a CO 2 savings of 4.9 tonnes per year for one machine. SKF products and solutions for renewable energy help display CO 2. If SKF were to equip all new motors ranging from sizes 1-50 HP with its current SKF E2 bearing range, a yearly tonnes of CO 2 emissions would be avoided.

22 BeyondZero portfolio - Automotive SKF bus door actuator saves 1900 kg CO 2 /year compared using pressurized air for operating the doors. SKF Rotor Positioning bearing reduces fuel consumption and CO 2 emissions up to 15%. SKF StopGo for two-wheelers Reduces CO 2 emissions by 5 g per kilometre.

23 BeyondZero portfolio - Automotive SKF Low Friction Seal reduces friction by up to 55%, which provides a CO2 savings of over 1 g per kilometre. A light commercial vehicle with four SKF Low Weight Hub Bearing Units reduces CO 2 by 5.0kg CO 2 per year. SKF products & solutions for electric vehicles.

24 Greenhouse gas impact of SKF products end of use use Largest contribution to greenhouse gases is the use phase transportation and distribution SKF manufacturing raw material and components

25 SKF s environmental approach Energy sourcing Suppliers Transportation Manufacturing Transportation Customers End-of-use From manufacturing-oriented.... to environmental life cycle management

26 SKF NEW Climate targets Area Target(s) Suppliers (Scope 3) 100% of energy intensive suppliers ISO by the end of 2016 SKF Factories & Cars (scope 1 & 2) Logistics/Transport (Scope 3) Twin targets: 1. Reduce the total annual energy use of the SKF Group by 5 % below the 2006 level by Reduce the energy use per production output (value added) by 5% year-over-year during the period ( ) Reducing CO2 emissions/tonne-km for all transports managed by SKF Logistics Services by 40% compared to 2010 by the end of 2016 Products and solutions Increase revenue from SKF BeyondZero portfolio* from 2.5 BSEK in 2011 to 10 BSEK in 2016.

27 SKF in Asia

28 Long history in Asia Established from 1912 Sales in BSEK - China 47%, India 21%, Rest of Asia 32% -26% of SKF Group sales 26 manufacturing locations in 6 countries 1,400 distributor/dealer locations

29 Our business direction Significant expansion in fast growing markets Develop our distributor channel and aftermarket Grow with the winning customers and segments Develop technology/solutions in Asia for Asia and for the Group Work with the high end and mid end markets Solid manufacturing, sales and engineering presence

30 Developing our distributor network Beijing, China October 2011 Fast Forward conference with our Asian distributors

31 Creating value for cutomers Automotive customer days Industrial customer days Jakarta, Indonesia Wind Power Day Dalian, China Shanghai, China

32 Creating and capturing value in many industries Verified added value for Asian customers USD 425 million

33 Large contract for China freight wagons SKF wins bearing contract worth around RMB 110 million for MoR (Minister of Railway) China freight wagons. SKF CTBU150 (compact taper bearing unit) is the standard design for all 25T axle load freight wagons in China since 2006.

34 Innovation takes Shenyang Blower to the top A leading company in China s fan industry, mainly produces centrifugal fans, axial flow fans and blowers and has an annual production of around 700 units. SKF contributed to increasing the reliability and uptime of their products. With SKF self aligning bearing and lubrication solution inside support, one set of their converter system can save up to RMB 100 million on the electricity bill annually for their customer.

35 SKF contributes the largest Asia new bascule bridge Tianjin new bascule bridge, spanning the Hai He River in China, is the largest of its kind in Asia, completed in November Length of bridge is 869 meters and clear span of the opening section is 68 meters. SKF contributes to this project by providing SKF large size spherical roller bearing, Lubrication solutions as well as engineering calculation.

36 Fitting steel and green into the same sentence Within one year, SKF help Baosteel by reconditioning of 1,000 concaster rolls, 24,000 caster bearings and 1,500 large-size bearings. This corresponds to a saving of >80% of the CO 2 emissions that would have been generated from producing a new bearing.

37 Investing in R&D SKF Global Technical Centres Bengaluru, India ~ 800 engineers by 2015 ~ SEK 175 million investment Shanghai, China To provide global capabilities: Product development Engineering services Testing Field usage evaluations Global metallurgy and chemistry laboratory Manufacturing process development and support

38 Addressing the full market How does the market look? How big is the High, Middle and Low end markets High High High High Middle Middle Middle Middle Low Low Low Low

39 Branding strategy Asia to address the market The size of the Normal performance bearing market is considered to be relatively higher in the Asian market. Middle High Knowledge engineering Documented value Cost reduction Brand Low Second brands Strong cost focus Peer/General/Hyatt brands Application specific products

40 Investing for the future Dalian, China Jinan, China Mysore, India Industrial Service Centres, Singapore Oil & Gas Marine

41 Solid Asian manufacturing footprint Wafangdian Nankou Dalian Dalian 2 Qingdao Jinan Taegu Busan Haridwar Wuhu Changshan Shanghai Pinghu Xinchang Bengaluru Mysore Ahmedabad Pune Bengaluru Bengaluru Taipei Bearing factories Seal factories Mechatronic factories New factories Nilai Jakarta

42 Developing knowledge Pune Solution Factory SKF College Campus Tianjin Solution Factory Industrial Service Centre Metals Tianjin Shanghai SKF College Campus Chino Japan Technical Centre Global Technical Centre China Global Technical Centre India Pune Bengaluru Singapore Solution Factory (2012) Industrial Service Centre Marine (2012) Singapore Taipei Industrial Service Centre Oil & Gas (2012) Shanghai Solution Factory Taipei Solution Factory Technical Centre Solution Factory Industrial Service Centre SKF College Campus Perth Australia Solution Factory SKF College Campus (2012)

43 Building knowledge Putting global segment and product people in Asia Transfer and build up local knowledge Implement SKF offer portfolio per application Drive SKF growth strategy in Asia

44 Building a high talent pool in Asia Strategic workforce acquisition Adding 1,000 people per year over the next few years Talent Development Learning and Development Building a Leadership pipeline

45 Some key elements in 12th FYP for China Made in China Designed in China Quantity of Growth Quality of Growth Faster and wider market consolidation Controlled RMB Release

46 Doing business in China Be clear why you are in China - domestic or export (or both) - clear strategy to address the market Invest in the business -people - manufacturing - technology development - support areas IT, logistics Build long term relationships - customers, distributors, suppliers - employees - authorities Protect IPR and brand name Operate a clear code of conduct

47 Key business message Good start to 2012 Slight demand improvement for SKF in Q2 Continuing to implement our initiatives to create value Launch of BeyondZero Portfolio creates new business opportunities Clear strategy for Asia and China and it is working!

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