SKF Industrial Market –
Strategic
Industries
Agenda
•Henrik
Lange, President
Strategic Industries
•
Kent Viitanen, DirectorRenewable Energy
•
Stephane
Le-Mounier, Director
Aerospace
Capture the full potential of the asset life cycle
SKF life cycle management
Strategic Industries strategy
•
Asset life cycle per industry
•
Geographic coverage
•
Organic growth
•
Acquisitions
•
New Market Offers
•
New technology
•
New processes
•
Green offers
•
Business Excellence•
6 Sigma•
Cost reduction (ICR)•
Asset utilization•
Manufacturing footprint
Market leadership & Profitable growth
Breakthrough innovation
Cost optimization & Flexibility
Railway
•
Passenger and locomotive
•
Freight cars
•
Aftermarket
Railway
9%
•
Geographically a broad based growth for the industry helped by strong growth in the freight related segment
•
Good success with metro projects such as Bombardier for Paris, Siemens for Warsaw, CSR for Shanghai
•
Big order for upgrade passenger coaches in China
•
First bearing company to have certified test centre in Russia
•
Continued growth in Europe
•
Good freight market development in China and recovery of high speed trains
•
North America stable on a high level
•
Globally strong freight market
Overview 2011 Achievement 2012 Outlook
Applying condition monitoring in railways
Metro Barcelona
Off-highway
10%
Off-highway
•
Continued growth through urbanization
•
Asia becoming centre of gravity
•
Expanding new products and technologies
•
Emission-
and efficiency regulations in key markets
•
Main seal supplier to JCB India new high-efficiency diesel engine
•
Launch of Agrihub
2 unitized agricultural machine bearing
•
Global supplier of CAT excavator drive-
and slewing bearings
•
Seal supply to John Deere heavy-
duty diesel engines in China
•
Customer-exclusive technology symposiums on transmission efficiency
•
Construction
•
Agriculture
•
Fork-lift trucks
•
Tunnel boring
Overview 2011 Achievement 2012 Outlook
Energy 13%
Traditional Energy
•
Oil prices keeping exploration activity strong
•
Natural gas prices remain very low despite resource expansion
•
Environmental regulations hasten move from coal to gas in OECD power generation
•
Non-OECD pushes ahead where coal is only viable option
•
Key Supplier Excellence Award received from National Oilwell
Varco 2011 (3rd time since 2006)
•
CEO contractor award for Safety Security Health and Environment Excellence 2011 from Thailand National Petroleum Exploration & Production
•
Won three significant contracts / extensions with BG Group, Maersk
and Chevron totalling SEK 30 million over contract life
•
Oil & Gas
•
Chemical processing
•
Electric power generation
Overview 2011 Achievement 2012 Outlook
SKF magnetic bearing technology
Statoil Subsea
concept
©
Statoil. Visualization of the sub-sea project
General industry 18%
Industrial Drive
•
Continued growth in Asia
•
Environmental regulations accelerate technological development
•
Energy efficiency importance increases
•
Drive for service-
and maintenance contracts
•
Received SKF Excellence Award for energy savings at customers in China using the Energy Efficient bearings (E2 DGBB)
•
Breakthrough at Spencer Turbine, received approval of magnetic bearings and permanent magnet motor for aeration blower
•
All time high sales for industrial gearbox and fluid power segments
•
Two unique SKF white papers accepted and presented at AGMA –
an important gearbox manufacturer association
•
Fluid power
•
Industrial gearboxes
•
Industrial electrical
•
Material handling
Overview 2011 Achievement 2012 Outlook
SKF E2 DGBB in centrifugal pumps
Calpeda
Precision
•
Asian market major growth driver for Machine Tool Industry
•
China, India and US main potential markets for Medical & Healthcare industry
•
Large opportunities for SKF Mechatronics
offering in the Automation Industry for riveting and welding robots
•
OEM Printing Industry in contracting phase
•
SKF Taiwan received best suppliers award from three Machine tool customers: Tongtai
Group, Honor and Hardinge
Taiwan
•
SKF CASM electric cylinders for industrial applications offer energy-
and cost-efficient alternative to pneumatic cylinders
•
Secured the Super-precision Bearings order for smart-phones new production equipment
•
Automation
•
Machine tool
•
Medical
•
Printing
Overview 2011 Achievement 2012 Outlook
Special industrial machinery
17%
Lubrication
2012 Outlook2011 AchievementOverview
•
Enhanced new product innovations
•
Increased focus on key developing segments (Agriculture, Oil & Gas)
•
Accelerating Latin America growth
•
Integration and synergy-building continue according to plan
•
Continued good growth in North America
•
Awarded SKF Excellence Award for innovative noise reduction offering developed for Deutsche Bahn
•
Received “World Class”
shipping performance award from Caterpillar Decatur
•
Integration work progressing as planned
•
Off-highway
•
Renewable
•
Machine Tools
•
Metals
Lincoln Progressive lubrication system for fleet
VRL Logistics fleet operator
BeyondZero
offers
Servo actuator for industrial automation applications
The SKF E2DGBB for electrical motors
The SKF Nautilus for wind turbine main shafts
SKF solar linear actuator for solar tracking
Performance 2010 –
2012 YTD
2010
Net
sales
Operating margin
17 210 SEKm
20 807SEKm
5 223SEKm
5 375SEKm
13.3% 13.9% 15.1% 12.0%
2011 Q1 2011 Q1 2012
Demand outlook for Q2 per segment
Sequential trend
Slightly higher +
Higher ++
Main segments
Industrial, General + Special
Industrial, Heavy + Off-highway
Energy
Aerospace
Railway
Key business message –
Strategic Industries
• Continue to create and capture value through the full asset life cycle in all industries served
• Drive effective account management with a strong key account management structure
• Speed up innovation to launch more new offers with economic and
environmental value
• Continued focus on cost optimization and flexibility through implementing Business Excellence & ICR
• Attract and retain the right people
• Continue to deliver profitable growth
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