SKF

Michael Crean, SKF,

Director Service Division

UK

SKF and Brammer

Presented to: Brammer Investor Day

Presented by: Michael Crean, Area Director West Europe

03/05/2012

2012 © SKF Group

SKF Group - Innovating since 1907

2012 © SKF Group

One Out of Six is an SKF Bearing

2012 © SKF Group

SKF - A truly global company

Established: 1907

Sales 2011: SEK 66,216 million

Employees: 46,039

Production sites: around 130 in 32 countries

SKF presence: in over 130 countries

Distributors/dealers: 15,000 locations

Global certificates: ISO 14001

OHSAS 18001 certification

2012 © SKF Group

Aerospace

Railway

Off-highway

Trucks

Two-wheeler

and Electrical

General industry

Heavy industry

Special industrial equipment

Vehicle Service Market

Industrial distribution

Cars and light trucks

Commercial

transport

Industrial business

Net sales by customer segment 2011, excl. Lincoln

Energy

13%

5%

4%

3%

3%

7%

6% 5%

10%

26%

5%

2012 Sales

66.2Bn SEK

26%

2012 © SKF Group

What we are aiming for

Industry

Oil platforms Paper mills Steel plants

Railways Mines

...

Industry Applications

Gearboxes Machines Conveyers

Pumps Fans

...

OEM End user Strengthen aftermarket sales

Create OEM sales pull

2012 © SKF Group

1 The Industrial Market

2012 © SKF Group

Delivering SKF Knowledge

2012 © SKF Group

Regional Sales & Service Business

Providing the industrial aftermarket with

value added solutions for improved

overall customer productivity based on:

• Advanced services and technical

competence to optimize plant asset

efficiency for industrial end users

• SKF’s platform products and services

through authorised distributor

channels

• Professional supply chain and

global reach

The Power of Knowledge Engineering

2012 © SKF Group

2 Delivering Value with Distributors

2012 © SKF Group

Misalignment

Looseness

Unbalance

Lubrication

Load

The Bearing as the Heart of the Machine

2012 © SKF Group

From Product to Solution

Each stage has different:

• Direct cost

• Impact

• Value (TCO)

• Customer engagement Plant performance

Systems and asset

condition

Product groupings

and upgrades

Products

2012 © SKF Group

3 Europe

2012 © SKF Group

Working Together

Growth

• Joint visits

• Key Account activities

• Segment competence /

collateral

• Sample Case

• Support to Insites

Capabilities

• Distributor College

• Sales methodologies

Synergies

• Solution Factory

• Key Account engagement

• Business review

structures

Costs

• Inventory availability

• Efficient / effective

logistics

• Active effective marketing

2012 © SKF Group

Working Together

Brammer Sample Case

Centre of Excellence

Mobile Centre of Excellence

Documented savings

SKF New Market Offers

SKF Solution Factory

SKF Solution Truck

SKF Documented

Solutions Program

2012 © SKF Group

Working Together

• An open working relationship, focused on short and long term

• Key Account engagement

• Effective Customer relationship management

• Active and on-going focus to document value with customers

• Delivery of advanced concepts – The Hidden Factory

2012 © SKF Group

Energy and Sustainability

• Addresses an issue of key

importance to many

industries

• Builds on “The bearing as

the heart of the machine”

• Expands on the way

performance of key assets

(fan, gearbox, compressor,

pump, etc) relies on quality

components

• Brings SKF service

capabilities into play with the

market

• Central to Brammer

2012 © SKF Group

Provide consistent training for distributors all over the

world to help them serve their customers even better and

sell more

Objective:

SKF Distributor College

SKF Distributor College - Certificates since 2005

00 000

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

2005

-12-

3020

06-0

6-30

2006

-12-

3020

07-0

6-30

2007

-12-

3020

08-0

6-30

2008

-12-

3020

09-0

6-30

2009

-12-

3020

10-0

6-30

2010

-12-

3020

11-0

6-30

2011

-12-

30

Certificates UsersMilestone Certificate Companies

140 000Dreghal SA, Uruguay

130 000Motion Ind. Canada

120 000PT SLS Bearindo

110 000Brammer UK Ltd

100 000Florida Bearings INC, USA

90 000Florida Bearings INC, USA

80 000Sygma Abastecedora, Mexico

70 000Standard Trade, Serbia

60 000SLS Bearings Pte Ltd, Singapore

50 000Marat Rybnik Sp. z o.o., Poland

45 000Eriks, Den Haag, The Netherlands

40 000Tieling Ruisikai Bearing Co. Ltd., China

35 000Miller Bearings, USA

30 000Fenyo Ker, Kft., Hungary

25 000Wallace Murray Electrical, NZ

20 000Sopetra, Brazil

15 000Kaman Technologies, US

10 000Prema sa, Poland

5 000Assam Bearing Private Ltd, India

• Reached 140,000 certificates mid February

• New layout of website and courses

• Further new courses being released throughout 2012

• Brammer personnel have completed 9,083 courses in

the last 16 months

Key points:

2012 © SKF Group