2012 © SKF Group

The SKF Group

Presented to name/s

Presented by name of presenter

2012-03-15

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

Net sales by geographic areas 2011

Western Europe Asia /Pacific

Middle East and Africa

North America

Eastern Europe

Latin America

41

5

3

19 6

26

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%

13%

7% 6%

5%

10%

26%

5%

2012 © SKF Group

6

35

3

89

1

86

10

6

0

26

38

19

24

7

13

38

28

42

North

America

Latin

America

Western

Europe

Eastern

Europe

Middle East

and Africa

Asia/Pacific

Net sales

Average number of employees

Tangible asset

% of group total

Geographic distribution 2011

Sweden

2012 © SKF Group

To equip the world

with SKF knowledge

SKF Group Vision

2012 © SKF Group

What is SKF knowledge?

2012 © SKF Group

Industry specialist and partner to many industries

Energy

• Renewable

• Traditional

Commercial

transport

• Aerospace

• Railways

• Off-highway

Special industrial

machinery

• Food & Beverage

• Machine Tools

• Marine

• Healthcare

• Medical

• Printing

• Textile

Heavy Industry

• Metal-working

• Mining

• Pulp & Paper

General Industry

• Industrial gearboxes

• Fluid power

• Material handling

• Industrial Electrical

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

Bearings and units

SKF’s platforms

2012 © SKF Group

Seals

SKF’s platforms

2012 © SKF Group

Mechatronics

SKF’s platforms

2012 © SKF Group

SKF’s platforms

Lubrication systems

2012 © SKF Group

SKF’s platforms

Services

2012 © SKF Group

Acquisition 2003-2011 Identifying gaps and opportunities in all platforms

Seals Bearings and units

Lubrication systems Services Mechatronics

Products

Technologies

Geographies

Segments

SNFA (2006)

S2M (2007)

QPM (2008)

Economos (2006)

Macrotech (2006)

Macrotech (2009)

Baker (2007)

PMCI (2007)

PB&A (2006)

Monitek (2006)

Safematic (2006)

Vogel (2004)

ALS (2007)

Sommers (2005)

ABBA (2007)

Jaeger (2005)

Peer (2008)

GLO (2008)

TCM (2003)

Scandrive (2003)

Cirval (2008)

Lincoln Industrial (2010)

2012 © SKF Group

-25

-20

-15

-10

-5

0

5

10

15

2005 2006 2007 2008 2009 2010 2011

Sales growth in local currency %

* Excl. effects from sale of Ovako: 2005: 10.4%

2006: 10.1%

7.3* 7.5*

13.2

7.1

Long-term targets (From 101019)

• 15% Operating margin, level

• 8% Growth per annum (local)

• 27% Return on capital employed

-19.0

Financial performance

0

2

4

6

8

10

12

14

2005 2006 2007 2008 2009 2010 2011

Operating margin %

10.8

12.6 12.9 12.2

5.7

0

2

4

6

8

10

12

14

16

18

20

22

24

26

2005 2006 2007 2008 2009 2010 2011

21.9 23.0 24.9

Return on capital employed %

24.0

9.1

13.8 14.2

24.0

14,5

23,6

16,3

2012 © SKF Group

Six Sigma

2011 status:

• 484 Black Belts

• 2,154 Green Belts

• 1,124 projects closed

Hard savings

2005: SEK 150 m

2006: SEK 200 m

2007: SEK 302 m

2008: SEK 462 m

2009: SEK 430 m

2010: SEK 468 m

2011: SEK 392 m

4 dimensions:

”Standard” Six Sigma, Design for Six

Sigma, Lean Six Sigma and Six Sigma

for Growth

2012 © SKF Group

SKF Care

Employee Care

Community Care Environmental Care

Business Care

BeyondZeroTM

0

2

4

6

8

10

12

14

2003 2004 2005 2006 2007 2008

SKF Care

Operating margin

2012 © SKF Group

BeyondZeroTM

• Energy efficient bearings

• Mechatronics in welding robots

• Actuators in window facade

• By-wire auto-throttle in aerospace

• Client Needs Analysis – Energy and Sustainability

Reduce energy intensity

• Energy training + energy toolbox

• Energy efficient pumps

• Energy efficient motors

• Waste heat recovery

• Improved window insulation

Reduce carbon intensity

• On-site solar power

• Sourcing renewable energy

0

-

+ BeyondZero

2012 © SKF Group

SKF community projects worldwide

Turkey, Siirt

Malaysia, volunteer

Argentina, Garrahan Foundation

Austria, Basky Sweden, Gothia Cup

India, Sports Academy

Brazil, Communidade

Germany, OBArt

South Africa, Legae

China,Hope School

2012 © SKF Group

SKF Commitment

High Ethics

Openness

Empowerment

Team Work

VALUES

DRIVERS Profitability

Quality

Innovation

Speed

Sustainability

2012 © SKF Group