Transcript Slide 0

SKF Automotive
CMD 2013
© SKF Group
CMD 2013
© SKF Group
CMD 2013
SKF Automotive speakers
Tryggve Sthen
President
SKF Automotive
Bernd Stephan
Director,
Business unit Trucks
Edward Holweg
Director,
Product and Systems Development
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CMD 2013
Agenda SKF Automotive
Market update
Way ahead
Special focus - Trucks
Special focus - SKF
knowledge engineering
Key business message
Q&A
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CMD 2013
Market update
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CMD 2013
Sales in local currencies and demand outlook
SKF demand
outlook for Q3 2013
Sales in local currencies excl. structure change y-o-y YTD 2013
Europe
North
America
Latin
America
Asia
Total Automotive
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Trucks
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Cars and light vehicles
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Vehicle service market
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Two-wheelers and
electrical
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CMD 2013
Middle
East &
Africa
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Sequential
trend
Business recovering
Sales development
Operating margin
9,0%
20,0
8,0%
16,0
7,0%
14,0
6,0%
12,0
5,0%
SEK billion
18,0
8,5%
5% Q2, 2013
5,8%
4,0%
Percent
10,0
8,0
6,0
4,0
3,0%
2,0%
1,0%
2,0
0,0%
2007
0,0
2007
2008
2009
2010
2011
2012
2013 H1
2008
2009
2010
2011
2012
2013
H1
Excl one time costs
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CMD 2013
Customer segments
Cars
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Trucks
CMD 2013
Two wheelers
Vehicle aftermarket
Other
SKF Automotive organisation
Five global business units with clear roles & responsibilities.
Trucks
Car Chassis
Bernd Stephan
Aurelio Nervo
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CMD 2013
PTE & TW
Vehicle
Service
Market
Sealing
Solutions
Franco Ferro Christer Cedervall John Bohenick
Light vehicle production
Total growth
2013/2012: +2,3%
Values in K units
+3.0 %
40000
2007
32000
2008
24000
2009
+4.8 %
2010
-3.1 %
16000
2011
2012
8000
Fcst
2013
0
W.Europe
Source: IHS July 2013
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CMD 2013
N.America
Asia
Two wheeler production
Total growth
2013/2012: +8%
Values in K units
65 000
60 000
55 000
50 000
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
2007
2008
2009
2010
2011
2012
-1.4%
+4.2 %
2013
fcst
W.Europe
L.America
Source: Frost & Sullivan and others, July 2013
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CMD 2013
+8.3%
Asia
Trucks production (GVW>6t)
Total growth
2013/2012: +3%
Values in K units
2007
+4,2%
2 000
2008
1 800
1 600
2009
1 400
1 200
2010
1 000
2011
800
-0,4%
600
-6,6%
2012
400
200
FC2013
0
W.Europe
Source: LMC Report Q2 2013
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N.America
Asia
The way ahead
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SKF Automotive strategy
Growth
Engineering
partner
After-market
Strategic account
manage-ment
Productivity
Winning customers
Cost and capital
efficiency
Offers for
regional demand
Cost reductions
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CMD 2013
Fast growing
markets
Growth drivers - Winning customers
Growth
Engineering
partner
After-market
Strategic account
manage-ment
Productivity
Winning customers
Cost and capital
efficiency
Offers for
regional demand
Cost reductions
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CMD 2013
Fast growing
markets
Growing with winning OEM customers
Recent successful cases
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Supplier recognition
GM Supplier of the Year Award 2012
3 consecutive years!
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SAIC
Zhan Jinping, Suspension System Manager
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SAIC
Excellent supplier important for brand building
SKF best in R&D and quick response time
Need SKF technology to meet goals
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CMD 2013
Geely
Chen Yong, Purchasing Manager
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Geely
Brand positioning
Localization in China
High performance and energy efficient products
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Growth drivers - Aftermarket
Growth
Engineering
partner
After-market
Strategic account
manage-ment
Productivity
Winning customers
Cost and capital
efficiency
Offers for
regional demand
Cost reductions
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CMD 2013
Fast growing
markets
Growing the vehicle aftermarket
Products
Growing range
600 new kits in 2013 =
20.600 kits
Global customer need
for local markets
Step up in-sourcing
Continued re-sourcing to
have the right suppliers
Flexible production
capacity OE to
aftermarket
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CMD 2013
Customers
Performance
Asia distributor network
grown with 40 new in half
year 2013
Significantly increased
flexibility and capacity
in packaging centers
Consolidation of national
distributors to Int. trading
groups
Extensive sales and
marketing efforts to
launch SKF branded
CV-Joint kits
Formed Global
Product Management
organization
Growth drivers – Engineering partner
Growth
Engineering
partner
After-market
Strategic account
manage-ment
Productivity
Offers for
regional demand
Winning customers
Cost and
capital
efficiency
Cost reductions
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CMD 2013
Fast growing
markets
Engineering partner
Solving customer issues
Local engineering globally
SKF Global Technical Centers –
expansion in fast growing markets
Simulation and calculation expertise
Testing and evaluation expertise
Reducing lead times by more than 10 times
Reducing weight and friction with up to 50%
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CMD 2013
12 engineering
centers
SKF BeyondZero portfolio - Automotive
Energy efficient solutions to reduce CO2
emissions and fuel/energy consumption.
SKF Turbocharger Ball
Bearing Unit
SKF Low Weight Hub
Bearing Unit
High pressure valve stem seal
SKF Rotor Positioning
Bearing
SKF eDrive Ball Bearing
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CMD 2013
SKF Low Friction Engine
Seal
SKF StopGo
E2 TRB for truck final
drive
SKF Low Friction Hub
Bearing Unit
SKF Sealed Energy
Efficient deep groove
ball bearing
SKF Bus Door
Actuator
High performance
seal for hub bearing
unit
SKF Rotor Positioning
Sensor-Bearing Unit
for traction motors
SKF Automotive – Reducing cost
Growth
Engineering
partner
After-market
Strategic account
manage-ment
Productivity
Offers for
regional demand
Cost and
capital
efficiency
Cost reductions
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CMD 2013
Winning customers
Fast growing
markets
Cost reduction programmes
Sustainable cost reductions through a number of global programmes
Manufacturing footprint
Investment focus in best cost countries
Cost reduction from sourcing and design
Business Excellence
Manufacturing
Management and administration
Six Sigma
Quality
Inventory optimization
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50 factories in
45 locations
45% in fast
growing markets
Business Excellence in Guadalajara, Mexico
Inventory reduction (days of inventory)
- 33%
Down time reduction
- 30%
Increased efficiency
+19%
Scrap reduction
- 44%
How was this achieved?
Deep dive to understand the gap vs. ideal lean conditions
Master schedule
Daily management process with visual inspection
All people involved and committed
Continuous improvements
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Manufacturing and engineering footprint – Asia
Expansion in Asia
Factory inaugurated and in production: Jinan, China
New factory being built: ATC II Shanghai, China
SKF Global Technical Centers expanding in India and China
12 factories in Asia
Jinan
Haridwar
Wuhu
Pune
Bangalore
Mysore
Jakarta
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CMD 2013
Taegu
Busan
Shanghai ATC+SSBC
Shanghai ATC II
SKF Automotive
Lets move out…..
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CMD 2013
SKF Automotive
CMD 2013
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CMD 2013
Key business message
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SKF Automotive – The way ahead
Growth
Engineering
partner
After-market
Strategic account
manage-ment
Productivity
Offers for
regional demand
Winning customers
Cost and
capital
efficiency
Cost reductions
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CMD 2013
Fast growing
markets
SKF Automotive – Driving profitable growth
Competitive advantages
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•
•
•
SKF brand
SKF knowledge engineering
Technology leadership
Global presence; sales,
engineering and manufacturing
• Value added products and solutions
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SKF BeyondZero portfolio
• Energy efficient solutions
• Credibility
• Life cycle management
• Calculations and
measurements
• External audit/review
Growth drivers
Cost focus
• Fast growing markets
• Sustainability
• Reduce waste
• Adapt and adjust for low inventory
cost
• Optimize product cost for optimized
customer value
CMD 2013
SKF Automotive – Key business message, Sept 2013
Well positioned product portfolio, with clear
positive environmental impact
Good growth sequentially
Improvements of order intake
Earnings recovering in first half 2013
Overall heading in the right direction
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CMD 2013
SKF Automotive
Open for questions…
Thank you
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CMD 2013