Service Division. Vartan Vartanian President, Service Division

Transcription

1 Service Division Vartan Vartanian President, Service Division SKF Capital Markets Day 2009

2 SKF Group Vision To equip the world with SKF knowledge

3 Net sales 2008 SKF Group Service Division Asia 30% Middle East & Africa 7% North America 14% Service Division out of SKF Group 33% Service Division sales 2008 (2007) Latin America 11% Central & Eastern Europe 10% Western Europe 28% Sales SEKm 21,529 (19,339) Operating margin 14.6% (13.5%)

4 Service Division business Providing platform-based and segmentfocused solutions to industrial customers for improved productivity with : Knowledge-based products, systems and services to optimize plant asset efficiency Bearings and related products and services through authorised distributors Global e-enabled logistics services to external and internal customers

5 Service Division Core Strategy Globalisation External Trends Demand for customization (specialisation) Distributor consolidation Emerging markets (Long-term demand) Effective Key Account focus, Value Selling Committed & Motivated People Improved Distribution Footprint Profitable Growth Platform growth, supported by Solution Factories Market leader within our solution & product offering Sustainability

6 Key Accounts and value selling

7 Delivering the SKF Value Consistently 3,800 cases SEK 2,840 m approved savings VALUE SELLING INDUSTRIES Client Needs Analysis CUSTOMER PLATFORMS

8 New/recent market offers Condition-based maintenance programme for ships SKF Multilog On-line System, IMx-S SKF Multilog On-Line System IMx-W (Wind) SKF Machine Condition Advisor SKF Microlog AX SKF SYSTEM 24 LAGE Series SKF WindCon 3.0 SKF E2 Energy Efficient Bearings And more

9 Key Accounts SKF - The preferred partner Few suppliers Key Accounts relationship Knowledge Engineering Partnership: SKF located at customer. Partnership Many suppliers SKF - mostly within one platform Value SKF all platforms SKF Capabilities

10 Reliability Systems (RS) revenue development Reliability Systems resources Number of people > 2, Sales up by a factor of 6 in 2008, compared to the start in This equals in average 20% growth annually

11 New Text business - basic British Petroleum exploration & production in UK -Existing 5 year proactive reliability maintenance services contract improving plant reliability, minimizing downtime and maximizing production revenue. SKF offers an improvement of the overall Asset Maintenance strategy. SKF award from British Petroleum -New development The award was given for a successful cooperation in a development work driven by BP for wireless technology onboard their vessels.

12 SKF ConRo solution to RIVA Group, Italy RIVA Group is a conglomerate of companies operating in the steel production industry. It's the outright leader of the sector in Italy and 3 rd in Europe. Riva has an overall production capacity of 23.5 million tons a year. ILVA TARANTO with 7 million tons of casted steel/year is the biggest plant of the company. As part of their work in Environment Management RIVA Group chooses SKF knowledge to increase efficiency and the respect of the environment by using the SKF ConRo solution for their continuous casting machine.

13 SKF ConRo solution for continous casting machines 1. Traditional open SRB solution 2. SKF sealed SRB solution 3. SKF ConRo solution (re-lubrication free) 1. High grease consumption and negative impact on the environment 2. Reduction of grease consumption 3. Zero level of grease consumption leading to a positive impact on the environment * SRB = Spherical Roller Bearing

14 Improved distribution footprint

15 Improved distributor footprint Expand market Lubrication Systems Distributor Expand product offering BEARING BASE Expand in niche markets Expand value added services & solutions Specialist Distributor

16 SKF Brammer E2 launch 50 status / 50 meeting small deep groove ball bearings Small deep groove ball bearings Medium deep groove ball bearings Spherical roller bearings Cylindrical roller bearings Tapered roller bearings To follow Full Portfolio Good for your business. And for your planet.

17 SKF E2 launch partners with Authorized Distributors North America 2009 Europe > 150 Asia-Pacific > 80 Latin America > 60 Energy Efficiency launch partners

18 Distributor programmes: Distributor College ,000th award Number of users Number of certificates >18% of our SKF Authorized Distributors have access. 30 different courses available

19 Network of SKF Certified Partners Certified Rebuilder electrical motors (31) Certified Maintenance Partner (141)

20 SKF Solution Factory

21 SKF Solution Factories - a key access point to Drive customer profitability Improve the profitability for our key customers delivering solutions/services making an impact to their key drivers. Drive SKF growth and profitability Develop profitable growth for SKF using all capabilities from all five platforms. Knowledge management Share process knowledge and successful business opportunities in SKF and among selected partners. AEO

22 SKF Training Centres SKF College Reliability Maintenance Institute/ Local training centres in SD Sales units

23 SKF Service Centres Mechatronics system houses Monitoring Centres Lubrication: Application centres Spindle Service Centres incl. planned Remanufacturing Service Centres incl. planned

24 SKF Economos: Sealing solutions Economos centres

25 Bringing it all together

26 SKF Solution Factories 2009 Sweden Alberta Texas UK Germany Italy Russia Turkey Tianjin Shanghai Taiwan Mexico India Colombia Brazil Johannesburg Australia Opened Planned

27 SKF Solution Factory competences Examples of capabilities: Advanced capabilities 3 Extended capabilites 2 Foundational requirements 1

28 SKF Solution Factory Shanghai - August 2008

29 SKF Solution Factory Tianjin - March 2009

30 SKF Ixion Solution Factory Brazil March 2009

31 SKF Solution Factory, Italy

32 SKF Solution Factory, Sweden

33 Our employees/ People development

34 Service Division knowledge & expertise To ensure that we always have the right people at the right place at the right time Equipped with the right competence, Knowledge and motivation doing the right thing Positioning SKF, the Knowledge Engineering Company as well as the preferred employer Performance Review Competence Gap Analysis Individual Development Plan Talent Management Leadership Review Working Climate Analysis SKF Excellence Award

35 Profitable growth

36 Profitable growth Customer Value (DSP) Cost focus Cash flow focus Six Sigma BELTS STATUS BELT COLOUR NO. OF BELTS BB + MBB 44 Green 344 DSP 19,314 total no of cases

37 Key business message Grow with our Key Accounts Grow sales in all platforms incl. SKF Power Transmission Continue to develop our distributor network Delivering measurable cost savings for our customers Fully utilise the SKF Solution Factories to deliver customised solutions

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