SKF Capital Markets Day Automotive Market

Transcription

1 SKF Capital Markets Day Automotive Market

2 Agenda SKF Automotive Market Market and SKF reality Strategy Application driven innovation Core application/product Core capabilities Create and capture customer value Competitiveness Success stories Summary

3 What s on the automakers agenda? Focusing efficiency for emission reduction (Engine downsizing and component weight reduction) Increasing standardization of platforms and modules Increasing cost competition from continued flat net vehicle pricing and consumer demand on higher value content Hybrid and fully electric powertrains Confidence in growth of compact affordable cars still strong Source: Prime research -World Car of the Year Study Global Automotive Trends 2014 Slide 3 3 November, 2015

4 Implications for SKF Automotive Market: a combination of opportunities and threats Supplier profits pools for mechanical systems are squeezed Smaller / affordable cars increase cost pressure on component suppliers Friction reduction driven by legislation and green agenda Weight reduction holds great potential E-commerce channel for after market sales, efficient logistics supply chain enabler for success Source: SKF analysis Slide 4 3 November, 2015

5 SKF Automotive Market business Sales by region Latin America India Western Europe China Asia excl. China & India 18.3 BSEK 2014 Seals Product portfolio Other* Wheel & suspension bearings North America Eastern Europe Ball and Taper bearings *) >10 Product lines Auto bearings market shares Hub bearing unit market shares Top customers 9. OTHER 8. ILJIN 1. SCH 7. CHINESE 9. OTHER 8. TIM 1. SKF 7. TIM 6. JTEKT 2. CHINESE 6. JTEKT 5. ILJIN 2. NSK 5. NSK 3. SKF 4. NTN 4. SCH 3. NTN Slide 5 3 November, 2015

6 Where we come from Strong heritage Pioneered with hub and suspension bearing units Leadership in deep groove ball bearings Strong manufacturing footprint of small tapered roller bearings Vehicle aftermarket penetration benefiting from global image of SKF We have built on a market leadership Local technical support through global application engineering Global manufacturing footprint World coordinated sales to cope with global platform offer however Slide 6 3 November 2015

7 What are we doing differently? 1 TURN AROUND PLAN to address cost Refocusing product portfolio to fewer product lines aligned with core capabilities 2 FOCUSED ACTIVITIES Addressing market requirements with the right cost/performance positioning Developing the aftermarket business model to fit market needs and new channels

8 Turn Around Plan launched Priorities Productivity Manufacturing footprint Application specific performance Supplier optimization Taking advantage of the synergies we get from our new simplified organizational structure Focusing on ongoing restructuring projects Reducing our cost by tailoring specifications to usage needs Focusing on direct and indirect material, services and logistics 5 Manufacturing technologies Focusing on World Class Manufacturing processes, such as intelligent grinding

9 Main activities in Turn Around Plan 1 Productivity Staff reduction vs end ,0% -7,0% -10,0% 2 Manufacturing footprint On-going restructuring Closed Component factory, France end 15 Kit operation, Sweden end 15 Seals Plant, US end YTD 2015 FC 2016 FC Further restructuring under development Application specific performance Supplier optimization Manufacturing technologies Targeting 8% Differentiated material and specification. Aftermarket wheel bearing material Vehicle aftermarket resourcing program New suppliers approval program Inbound transport project Global indirect material consolidated purchasing Cold rolling Intelligent grinding Operational improvements Slide 9 3 November 2015

10 Strengthening the vehicle aftermarket business model and service offer Focused product portfolio Focus on selected market segments, customers Full coverage for prioritized OEM platforms Products tailored to aftermarket requirements Optimized channels to market Traditional market channels (service labels, distribution, repackers) Emerging regional and global e-commerce platforms Innovative manufacturing & demand driven supply chain World class supply solutions tailored to relevant channels Flexible manufacturing processes to address market dynamics Slide 10 3 November, 2015

11 Product portfolio development Today Core products Performance and feature leadership of hub bearing units Friction management in SKF bearings (balls & tapers) Core capabilities Selected automotive special products Seals portfolio supporting bearing business and enabler for friction reduction Future Develop game changer products in wheel end New solutions for next generation powertrains Slide 11 3 November, 2015

12 We are. stretching our internal capabilities! To build up a more competitive structure Deployed around our core business Dedicated to a more focused agenda to deliver application driven solutions with higher competitiveness and differentiation potential. From process experts to product innovators! Slide 12 3 November, 2015