industrial division · 2008-06-05 · wind energy market development •annual average growth...
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Industrial Division
Presented by Henrik LangePresident, Industrial Division
SKF Capital Markets Day 2008
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Actuation & Motion Control
Miniature profile rails
Ball & Roller Screws
Magnetic bearings Teliscopic pillars
• Responsible for the SKF business in electro-mechanical actuators, linear drives, ball & roller screws, actuation systems & magnetic bearings
• Strengthening SKF´s position within by-wire applications
• Main industry focus: medical, health care, oil & gas, machine tool and factory automation
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Aerospace and High Precision Bearing
• Offers solutions based on bearings, structural components and seals to the global Aerospace market
• SKF High Precision Bearings offer solutions for the machine tool industry
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Railways
• The leading bearing, and service supplier to the global railway industry.
• SKF axleboxes and sensorized bearing solutions are market leading
• SKF supply maximized performance and minimized lifecycle cost for railway operators all over the world
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Lubrication systems
• Provides industry leading centralized lubrication system solutions
• Product & solutions developed and manufactured by Willy Vogel AG and SKF Muurame
• Main industry focus: machine tool, pulp & paper, wind energy and marine
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General industryIndustrial transmissions, fluid power, materials handling, other industries
Heavy industryMetal-working, mining, pulp & paper
Special industrial equipmentEnergy, food & beverage, machine tools, marine, medical & healthcare, printing and textiles
General industry
Vehicle Service Market
Trucks
Off-highway
Railway
Aerospace
Cars
Special industrial equipment
Heavy industry
Industrialdistribution
Two-wheeler & house hold equipment
SKF Group net sales by customer segment
Industrial businessCars and light trucks
Aftermarket Commercial transport
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Net sales comparison by customer segment
SKF Group Industrial Division
General industry
Vehicle Service Market
Trucks
Off-highway
Railway
Aerospace
Cars
Special industrial equipment
Two-wheeler & house hold equipment
Heavy industry
Industrialdistribution
Energy 9%
General industry 31%
Heavy industry 9%
Off-highway 8%
Railway 8%
Special industrial equipment 28%
Commercial transport 32%
Aerospace 16%
Industrial businessCars and light trucks
Aftermarket Commercial transport
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Creating and capturing value with OEMs
Customer's
customer
Customer business process
IdeaTechnology
& Business
drives
InitialDev
Design &
Engineering
VerificationDef
DesignPrototyping
Test SerialLaunch
Procurement
LaunchSales
After salesSupport
Services
SKF Products & Solutions• design optimization
• test & verification
• trouble shooting
• system integration
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Creating & capturing value in many industries
Energy• Fossil• Hydro Oil & Gas• Hydrogen carbon• Nuclear• Wind
Commercial transport• Aerospace• Marine• Off-highway• Railways
Special industrial equipment• Food & beverage• Healthcare• Machine tools• Medical • Printing
Heavy Industry• Metal-working• Mining• Pulp & paper
General Industry• Industrial
transmissions• Industrial electrical• Materials handling• Pump
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No moisture
No corrosion
Cleanliness
No waste water & dry floors
Minimum lubrication consumption
Dry film lubricant drastically reduces
consumption of lubricant and waste water
SKF new value propositions for food & beverage industry
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SKF new value proposition for agriculture industry
• Five times increased farm productivity (20,000->100,000 ha)• Reduced cost of ownership by 30%• Reduced seed bed pollution up to 500 kg of grease / machine• Reduced cost of management by 90%
SKF Agri Hub
Reduced: Grease usage, warranty costIncreased: Farm productivity & profitability
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SKF new value proposition for metalworking industry
SKF ConRo
• No re-lubrication required
• Extended roll service life
• Simplified mounting
• Reduced environmental impact
• Lower operating costs
SKF Caster Analyst
• An online monitoring system for casters
• Collects and analyzes load and temperature data
• Helps secure slab quality
• Contributes to process optimization
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Industrial Division manufacturing
• Responsible for the manufacturing of a wide range of bearings
• 135 channels• Min OD 20 mm• Max OD 8,000 mm• 130 M bearings / year• 15,000 bearings / hour
Main focus:• Manufacturing Excellence
•ODR •Resetting•Net Output•Supply chain•Capacity utilization
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Sweden
France
Germany
India
China
USA
2010 / 2005 +350%
SKF capacity developmentlarge size bearing manufacturing footprint 2005-2010
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Wind energy market development
•Annual average growth 1995-2007: 26%
•Annual average growth 2007-2012: 21%
•By 2007: Wind contributed to 1% of global electricity needs
•By 2017; Wind expected tosupply 6% of global electricitydemand
Annual Global Wind Power DevelopmentActual 1990-2007 Forecast 2008-2012 Prediction 2013-2017
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
1990 2007 2012 2017
MW
Prediction Offshore (Forecast) Forecast Existing capacitySource: BTM Consult ApS - March 2008
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Products: Large and medium size bearingsfor power generation/renewable energy, metal, industrial transmission, mining & construction
Factory Area:50,000 sqm (step 1+2)Investment: RMB ~1000 m (step 1+2)Employees : From 240 to 600 (by 2009) Start: 2007 (step 1)
2009 (step 2)
SKF capacity build up in Asia: Dalian, China
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SKF capacity build up in Asia: Ahmedabad, India
Products: Large Size BearingsLand Area : 137,000 sqmInvestment : SEK 450 millionEmployees : 300 Start: 2009
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New railway manufacturing in Russia
Land Area: 85,000 sqmFactory size, step 1: 9,000 sqmInvestment: SEK 235 mEmployees: 150Start production: 2010
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The best people - SKF the employer of the year in
• 16,000 young professionalsin Sweden were asked to judge their own company
• 310 companies took part• SKF valued as the best employer
of the year
• SKF Dalian valued as the Best and Preferred Employer 2007 by Dalian Government, Dalian Labor Bureau, Dalian Daily News and Dalian Social Security System Bureau
Sweden Dalian, China
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Industrial Division acquisitions
Jaeger(2005)
ABBA (2007)
SNFA(2006)
Safematic(2006)
Vogel(2004)
Period 2004 – 2008:A total annual turnover
of SEK 3.3 billion acquired**) at acquisition date
S2M(2007)
QPM(2008)
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SKF & S2M: global leadership in magnetic bearings
Magnetic bearings provide:
• Environmentally friendly oil free operation• No wear –virtually maintenance free operation• Vibration free operation with advanced controls• Expanded speed/power range• Advanced machine condition monitoring • Low energy consumption
S2M• Acquired by SKF:
Dec 2007• Headquarter:
Vernon, France• Annual sales:
EUR 40 million• 200 employees
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• QPM is located in Monroe, USA (close to Seattle)
• Manufactures metallic rods for various aerospace applications
• Joint customer base: e.g. Airbus, Boeing, Dassault and Eurocopter
• This acquisition will support SKF's growth in the metallic rod business in North America.
Acquired by SKF: March 200812 employees
Going for growth in airframe rods business
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Sustained profitable growth
2007 (SEKm) 2007/2006 Q1 2008 (SEKm) Q1 2008/Q1 2007
Net sales 19 266
BOI
Operating Margin
Net sales 19,693
Operating profit
Operating margin
3,434
+13%
+13%
(11.4%*)+11.8%
5,528
1,012
12.5%
+12%
+15%
(12.2%*)
*) previous year operating margin
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Industrial Division key business messages
• Continue to create and capture value through the launch of new market offers to existing and new customers based on specific industry segment needs
• Effective account management with an improved key account management structure
• Continued focus on operational excellence in manufacturing
• Employee development through focus on competence and motivation
• Drive a sustainable profitable growth in the industrial market