SKF Capital Markets Day Patrick Tong President / Specialty Business

Transcription

1 SKF Capital Markets Day Patrick Tong President / Specialty Business

2 Agenda Overview of Specialty Business Specialty Business strategy Application driven innovation Success stories Summary

3 Overview of Specialty Business 2014 Net Sales 11 BSEK operating margin 10% # employees 8700 Four stand alone businesses with different product offers Mainly sprung from acquisitions with strong industrial brands Focused on offering customer specific application solutions Full value chain operational models to excel in speed to customer Synergistic opportunities within SKF Specialty Business and with SKF SKF LAT Kaydon SKF Aerospace 2 nd brand bearing portfolio Managed under SKF Brand 2 November, 2015

4 Sales by geography North America 58% Western Europe 34% Asia 9% Countries with manufacturing footprint

5 SKF Aerospace Products Customized range of ball, roller, plain and elastomeric bearings, seals, composite and mechatronics solutions for engines, helicopters and aircraft Sales by geography 4% 34% 62% Western Europe North America Asia incl China and India Main customers 2 November, 2015

6 Kaydon Brands & Applications Acquired 2013 Friction control: Primary focus is engineering and manufacturing a broad offering of bearing solutions Velocity control: Primary focus is velocity control for motion, shock and safety control applications Sales by geography 2% 25% Western Europe North America 73% Asia Main customers & segments Heavy equipment Aerospace Construction Renewable Medical 2 November, 2015

7 L&AT Products Sales by geography Linear and Actuation Technology (L&AT) is a combination of the previous Linear Motion and Actuation System business lines. Ball & roller screws Linear guides & tables Actuations systems 26% 13% 61% Europe America Asia Main customers & segments Medical Automation Machine tool 2 November, 2015

8 Second brands Brands & applications PEER (acquired 2008) is a leader in Agriculture attachments and in select Industrial applications GBC (acquired 2012) is focused in applications for light and heavy vehicles Sales by geography 3% 19% 78% Western Europe North America Asia incl China and India Main customers & segments Truck Powertrain Agricultural Car chassis 2 November, 2015

9 Specialty Business strategy

10 Our five priorities within Specialty will drive the change 1 Create and capture customer value Leverage End to end business models enabling speed, responsiveness, service, and easy to do business with. 2 Application driven innovation We will remain uniquely close to the customer to create customized solutions and quickly react to change. 3 World class manufacturing We will improve our manufacturing for high flexibility and best service meeting the quality demand. 4 Cost competitiveness We will drive obsessive continuous improvement to lower our costs and attain cost leadership. 5 Maximize cash flow over time Fix underperforming units, intense focus on working capital improvements, strengthen balance sheet, Improve lead times. Synergies 2 November, 2015

11 Specialty Business - synergies Footprint Aero USA footprint Improve utilisation and rationalisation, total SKF Second Brand manufacturing and supply chain Slewing Bearing centre of excellence Go To Market Common industries: Medical, Aero, Automation, D/D Globalize Specialty Business through SKF Knowledge/Competence Manufacturing SKF Production Systems Quality and engineering leverage SKF Knowledge Product line management IT, Processes, and Systems Streamline and align for business friendliness Reduce the number of systems Facilitate synergies Capture synergies between Specialty units and with other SKF units 2 November, 2015

12 Kaydon operational structure evolution Friction Control Products Velocity Control Products Kaydon Bearings Cooper Bearings Industrial Tectonics, Inc. Kaydon Ring & Seal Tridan Canfield Indiana Precision ACE Controls, Inc. HAHN Gmbh Fabreeka / Tech Products Purafil Kaydon Filtration Ring & Seal KAYDON FILTRATION SKF Avallon integrated into Kaydon Jan 1, 2015 Integrated into SKF AERO, Q3-15 Divested/closed during Q2/Q3-15 Now a focused Motion control group Divested during Q2/Q3-15

13 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Kaydon footprint expanded to Brazil No. of Bearing Sets 13 11/2/2015

14 Application driven innovation

15 Application offer for Medical industry This illustration identifies the wide range of applications for which SKF offers solutions in a typical x-ray room. Additional offers for the industry are also included.

16 Bearing solutions for lawn & garden equipment Spindle Turf Roller Idler Pulley Wheel Zero Turn Caster

17 Aerospace Service life extension Increased uptime Power density 2X load By MSEK from innovation Energy efficiency -20% power loss Weight savings $ per kilo Reliability Life prediction 2014 starting point New materials Aluminium Titanium Composite Ceramic Steel Technology & design Black design Coatings Lubrication Surface treatment New processes Condition monitoring Usage & health monitoring

18 Success stories / recent contracts

19 Success stories SKF supplies bearings for next-generation aircraft engines supply CFM International with mainshaft and gearbox bearings for the new LEAP engine program. the bearings will help contribute to a lighter, quieter and more fuel efficient aircraft engine that emits up to 16% less carbon than its predecessor, the CFM56. SKF signs long-term agreement with UTC supply UTC s aerospace divisions with precision roller and ball bearings, as well as seals and precision elastomeric components engine bearings to be used in their Next Generation Product Family geared turbofan engines. Slide 19 2 November, 2015

20 Summary

21 Summary Specialty Business Continue to excel in customer application focus Grow globally in targeted sectors Capturing synergies - Footprint - Go to market - Competence - IT Solid profitable business Slide 21 2 November, 2015