© SKF Group CMD 2013
SKF Automotive
CMD 2013
© SKF Group CMD 2013
© SKF Group CMD 2013
SKF Automotive speakers
Tryggve
SthenPresidentSKF Automotive
Bernd StephanDirector, Business unit Trucks
Edward HolwegDirector, Product and Systems Development
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Agenda SKF Automotive
Market updateWay ahead
Special focus -
Trucks
Special focus -
SKF knowledge engineering
Key business messageQ&A
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Market update
© SKF Group CMD 2013
Sales in local currencies and demand outlook
Sequential trend
Sales in local currencies excl. structure change y-o-y
YTD 2013
Europe North America
Latin America Asia
Middle East & Africa
Total Automotive +/- +/- + +++
Trucks ++ --- +++
Cars and light vehicles ++ +++ +++ +++
Vehicle service market +++ ++ +++ -- +
Two-wheelers and electrical +/- --- +++ ---
SKF demand outlook for Q3 2013
© SKF Group CMD 2013
Business recovering
Sales development Operating margin
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
20,0
2007 2008 2009 2010 2011 2012 2013 H1
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
2007 2008 2009 2010 2011 2012 2013
H1
5%
SE
K b
illio
n
Per
cent
Excl
one
time costs
8,5%
Q2, 20135,8%
© SKF Group CMD 2013
Customer
segments
Cars Trucks Two wheelers Vehicle aftermarket
Other
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Car ChassisTrucks PTE & TWVehicle Service Market
Sealing Solutions
Aurelio NervoBernd Stephan Franco Ferro Christer Cedervall John Bohenick
Five
global business units
with clear
roles
& responsibilities.
SKF Automotive
organisation
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Light vehicle production
0
8000
16000
24000
32000
40000
W.Europe N.America Asia
2007
2008
2009
2010
2011
2012
Fcst2013
Source: IHS July
2013
-3.1
%
+4.8
%
+3.0
%Total growth 2013/2012: +2,3%Values
in K units
© SKF Group CMD 2013
Two wheeler production
05 000
10 00015 00020 00025 00030 00035 00040 00045 00050 00055 00060 00065 000
W.Europe L.America Asia
2007
2008
2009
2010
2011
2012
2013fcst
Source: Frost
& Sullivan
and others, July
2013
-1.4% +4.2
%
+8.3%Total growth 2013/2012: +8%Values
in K units
© SKF Group CMD 2013
0200400600800
1 0001 2001 4001 6001 8002 000
W.Europe N.America Asia
2007
2008
2009
2010
2011
2012
FC2013
Trucks production (GVW>6t)
Source: LMC Report
Q2 2013
-6,6% -0,4%
+4,2%
Total growth 2013/2012: +3%Values
in K units
© SKF Group CMD 2013
The way ahead
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SKF Automotive strategy
GrowthFast
growing marketsEngineering
partner
Winning customers
After-
market
Strategic account manage-
mentCost and capital
efficiencyProductivity
Offers for regional demand
Cost reductions
© SKF Group CMD 2013
Growth drivers -
Winning customers
GrowthFast
growing marketsEngineering
partner
Winning customers
After-
market
Strategic account manage-
mentCost and capital
efficiencyProductivity
Offers for regional demand
Cost reductions
© SKF Group CMD 2013
Growing with winning OEM customers
Recent successful cases
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Supplier recognition
GM Supplier
of the Year
Award 20123 consecutive years!
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SAIC Zhan Jinping,
Suspension System Manager
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SAIC
Excellent supplier important for brand buildingSKF best in R&D and quick response timeNeed SKF technology to meet goals
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Geely Chen Yong,
Purchasing Manager
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Geely
Brand positioningLocalization in China High performance and energy efficient products
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Growth drivers -
Aftermarket
GrowthFast
growing marketsEngineering
partner
Winning customers
After-
market
Strategic account manage-
mentCost and capital
efficiencyProductivity
Offers for regional demand
Cost reductions
© SKF Group CMD 2013
Growing the vehicle aftermarket
Growing range 600 new kits in 2013 = 20.600 kitsGlobal customer need for local markets
Step up in-sourcingContinued re-sourcing to have the right suppliers Flexible production capacity OE to aftermarket
Products Asia distributor network grown with 40 new in half year 2013Consolidation of national distributors to Int. trading groups
Formed Global Product Management organization
CustomersSignificantly increased flexibility and capacity in packaging centersExtensive sales and marketing efforts to launch SKF branded CV-Joint kits
Performance
© SKF Group CMD 2013
Growth drivers –
Engineering partner
GrowthFast
growing marketsEngineering
partner
Winning customers
After-
market
Strategic account manage-
mentCost and capital
efficiencyProductivity
Offers for regional demand
Cost reductions
© SKF Group CMD 2013
Engineering partner
Local engineering globallySKF Global Technical Centers –
expansion in fast growing marketsSimulation and calculation expertiseTesting and evaluation expertise
Reducing lead times by more than 10 timesReducing weight and friction with up to 50%
Solving customer issues
12 engineering centers
© SKF Group CMD 2013
SKF BeyondZero
portfolio -
Automotive
SKF Turbocharger Ball Bearing Unit
High pressure
valve
stem
seal
SKF eDrive
Ball Bearing
SKF Low
Weight
Hub
Bearing Unit SKF StopGo
SKF Rotor Positioning
BearingE2 TRB for truck final drive
SKF Low
Friction
Engine Seal
SKF Bus Door
Actuator
High performance seal
for hub
bearing
unitSKF Low
Friction
Hub
Bearing Unit
SKF Sealed
Energy
Efficient
deep
groove
ball bearing
SKF Rotor Positioning
Sensor-Bearing
Unit
for traction
motors
Energy efficient solutions to reduce CO2
emissions and fuel/energy consumption.
© SKF Group CMD 2013
SKF Automotive –
Reducing cost
GrowthFast
growing marketsEngineering
partner
Winning customers
After-
market
Strategic account manage-
mentCost and capital
efficiencyProductivity
Offers for regional demand
Cost reductions
© SKF Group CMD 2013
Cost
reduction
programmes
Sustainable cost reductions through a number of global programmes
Manufacturing footprintInvestment focus in best cost countries
Cost reduction from sourcing and design
Business Excellence ManufacturingManagement and administrationSix SigmaQuality
Inventory optimization
50 factories in 45 locations
45% in fast growing markets
© SKF Group CMD 2013
Business Excellence in Guadalajara, Mexico
Inventory reduction (days of inventory)
-
33%Down time reduction
-
30%Increased efficiency
+19%Scrap reduction -
44%
How was this achieved?Deep dive to understand the gap vs. ideal lean conditionsMaster scheduleDaily management process with visual inspectionAll people involved and committedContinuous improvements
© SKF Group CMD 2013
Manufacturing and engineering footprint –
Asia
Factory inaugurated and in production: Jinan, ChinaNew factory being built: ATC II Shanghai, ChinaSKF Global Technical Centers expanding in India and China12 factories in Asia
Wuhu
Taegu
Jakarta
Mysore
Pune
HaridwarBusanJinan
Shanghai ATC+SSBC
Bangalore
Expansion in Asia
Shanghai ATC II
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SKF Automotive
Lets move out…..
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SKF Automotive
CMD 2013
© SKF Group CMD 2013
Key business message
© SKF Group CMD 2013
SKF Automotive –
The way ahead
GrowthFast
growing marketsEngineering
partner
Winning customers
After-
market
Strategic account manage-
mentCost and capital
efficiencyProductivity
Offers for regional demand
Cost reductions
© SKF Group CMD 2013
SKF Automotive –
Driving profitable growth
Competitive advantages
•
SKF brand •
SKF knowledge engineering •
Technology leadership•
Global presence; sales, engineering and manufacturing
•
Value added products and solutions
Cost focus
•
Reduce waste•
Adapt and adjust for low inventory cost
•
Optimize product cost for optimized customer value
SKF BeyondZero
portfolio
•
Energy efficient solutions•
Credibility•
Life cycle management•
Calculations and measurements
•
External audit/review
Growth drivers
•
Fast growing markets•
Sustainability
© SKF Group CMD 2013
SKF Automotive
–
Key business message, Sept
2013
Well positioned product portfolio, with clear positive environmental impactGood growth sequentially Improvements of order intake Earnings recovering in first half 2013Overall heading in the right direction
© SKF Group CMD 2013
SKF Automotive
Open for questions…
Thank you