Fee-based businessgrowing• Currently SEK 1 billion / annum

• Growing quickly

• Customer wins across allregions

• Process industries in focus

A World of ReliableRotation -Gearing up competences and rebalancing footprint

R&D engineers /experts since 2017:

• +45% in China

• +60% in USA/Canada

• Flat in Europe

From 5 to 56 data scientists

50% increase in Digital Twin /Software Development experts

The air compressor and the drive e-motor

Rotation as a Service – components and enablers

SKF静音深沟球轴承

2

Ball bearings for e-motors: SKF in Xinchang

AEM静音产品型号系统 – AEM silent bearing range

Reconditioned oil – a key part of Rotation as a Service

• Reduced oil consumption and CO2 footprint

• Reduced maintenance – fewer (no) oil changes• Increased machine uptime

• Oil cleanliness = lower friction, longer life• Reduced oxidation = longer use of same oil

Treating the oil…

New oil Used oil RecondOilParticle Count

(ISO 4406) 17/16/10 18/16/13 17/15/12

Resistance to Oxidation(RBOT, in min) 15% better ref 15% better

Air compressor

…leads to less wear and friction

New oil Used oil RecondOil

SKF Wear method 70% less ref 60% less

Friction coefficient 20% lower 0.045 20 % lower

“Automated Machine Modeling”:

• SW selects its own algorithms• Generates digital models of machines• Continuously validates and maintains models

Dozens ofalgorithms?

?

?

Artificial Intelligence

Prognosing drivelinehealth at pulp mill inBrazil• Pulp bleaching system

• 15 motor – pump drivelines

• Bearing monitoring- andprocess data

• SKF AI (Presenso) algorithmanalytics

Pump B – prognosing an unexpected machine failure

AI Center of Excellence

First Prediction17-Dec

Anomaly Detected29-Dec

Refrigerant flow in compressor bearing

Leading the development of hybrid bearings

• Rolling elements made of bearinggrade silicon nitride (Si3N4)

• Rings made of steel

Using hybrid bearings in a compressor upgrades performance

Bearing Description L10hyb (h) L10ISO (h)

SKF7310BE-HC5

Load Light / Moderate P=4,6kN (C/P = 21)

420 100 4 200Speed 9 600 rpm

Lubrication Poor (high contamination with refrigerant) 0.2=ߢ-

Contamination moderate solid particle contamination, ߟ = 0.4

GBLM ISO 281

Rotation as a Service – the Circular Economy, made real