Vehicle Service Market (VSM) Lars Wilsby Director, Vehicle Service Market

Transcription

1 Vehicle Service Market (VSM) Lars Wilsby Director, Vehicle Service Market Capital Markets day 2010

2 Contents 1. SKF VSM a solid platform 2. The automotive aftermarket a stable growth market 3. SKF VSM growth strategy 4. Plant tour and product exhibition

3 A solid platform

4 Overview of SKF Vehicle Service Market (VSM) SKF Group SKF VSM 6,7 BSEK (2009) 12% of SKF Group turnover Double digit annual growth

5 SKF VSM automotive product portfolio

6 SKF VSM heavy duty product portfolio

7 Aftermarket structure Spare part supplier Original Equipment Supplier (OES) Car Manufacturer Franchised Dealers National Distributors Local Distributors Independent Aftermarket (IAM) Workshops Lower margin No brand visibility Car owner Higher margin Brand visibility

8 Independent Aftermarket Selection of our customer base North America Leading Automotive distributors and high focus on Heavy Duty Europe All four major distribution groups China 40 distributors network doubled last two years. South America 150 distributors India 250 distributors retailers

9 Our competitive edge Power brand in the aftermarket on ALL continents Product quality, performance and range Top level distribution network Global logistic platform and availability Global market leader in wheel bearings and strong position in engine products

10 A stable growth market

11 Spare part lifecycle SKF Involvement Car launch Independent Aftermarket (IAM) Original Equipment Supplier (OES) Warranty period Years

12 Growth drivers of the Independent Aftermarket Value of the Independent Aftermarket Total miles + Repair/miles + Value/repair Vehicle parc size + Gas prices Distance to work + Average operating conditions + Vehicle parc age + Product longevity - Components value ++ Kits vs loose parts + IAM vs OES +

13 Global Car Parc Growth (million cars) CAGR Western Europe +0,7% North America +0,8% Asia (ex China and India) +1,1% Eastern Europe +3,9% China +17,1% South America +5,6% India +10,4% Africa +2,0% Source: Global Insight 2009

14 Aftermarket is continuously growing The Global Automotive Aftermarket sales are estimated to grow with 2,3% (CAGR) between , thus reaching 800 BEUR in KPMG Issues Monitor July 2009

15 Growth strategy

16 SKF VSM - Growth drivers Increase distribution selectively fill white spots Superior service Market Penetration Asia esp China and India South America Eastern Europe New Markets New Products Range extension Value added Adding new products close to core

17 Increasing market penetration Example: West Europe - Selected new business 2010 Market Penetration Carat Germany All product lines AS Parts Portugal All product lines Dhenin France Timing drive AD Bassin France Timing drive GAU DK Denmark Timing drive, Wheel end OVAM Italy Accessory drive Medinabi Spain Engine and Driveline Knoll Germany Engine and Wheel end Pene Auto France Wheel, Water pump Hartje Germany All product lines Strauch Germany Timing drive, Water pump ECP UK Timing drive, Suspension MAP France Engine Hess Germany Driveline

18 New Market growth example India New Markets Increased distribution coverage in rural areas to 250 distributors and retailers Broadened product portfolio tripled last 5 years Extensive investments in marketing, e.g. signage, cataloguing, advertising, loyalty programs Major technical training effort Doubled sales last 5 years

19 Vehicle Parts Operations Global Sourcing The kit centers Packaging of kits (typically >1000 types) Drive local product development Cost efficient sourcing of components Secure availability and efficient supply chain w Ne kets r Ma

20 New products - Value added Wheel end Kit content value Product value Complete kit with HBU3 Replacement frequency: 2% Value: 2000 HBU3 with integrated ABS sensor Tapered bearing Replacement frequency: 5% Value: 100 w Ne ucts od Pr

21 New products Adding new products New Products Driveshaft, CVJ and Boot kits Launched: 2007 No of kits: More than 1600 Acquisition of GLO S.r.l in 2008 to acquire production platform, supplier network, R&D, knowledge base.

22 New products Range Extension New Products Product variants Target: 96% application coverage < (YTD)

23 Key Business Message SKF VSM a solid platform Wide product range global leader in wheel bearings First class distribution network Strong logistics and availability Superior customer support The automotive aftermarket a stable growth market A proven strategy for growth Market penetration New markets New products

24 VP GOT Launched: 1970 Employees: 48 (50% staff, 50% production) Product lines: Wheel bearing kits, Commercial vehicle range Variants: 1400 different variants of kits Annual production: kits ISO 9001, 14001, TS16949 Manufacturing excellence (Lean, KaiZen, etc). Six Sigma.

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