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7 Lubrication

7 Lubrication. Robert Law Director Business unit Lubrication. Timeline and acquisitions. SKF acquisitions. Willy Vogel AG (Germany ). Safematic (Finland ). Cirval (Argentina ). Lincoln (USA ). Sommers (Sweden ). ALS (Canada ).

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7 Lubrication

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  1. 7Lubrication Robert Law Director Business unit Lubrication

  2. Timeline and acquisitions SKF acquisitions Willy Vogel AG(Germany) Safematic(Finland) Cirval(Argentina) Lincoln(USA) Sommers(Sweden) ALS(Canada) Global leader in the automated lubrication systems market Lincoln acquisitions LincolnHelios India Alemite(USA) Reelcraft(USA) CMD 2014

  3. Competitive advantages – lubrication business Experienced employees and partners Global presence and local knowledge Premium product brands Broadest offering in the industry CMD 2014

  4. Customers Go to market structure Automatic lubrication systems • We go to market as SKF with the two leading brands SKF and Lincoln • Opens up the opportunity to reach out with our full line offering to more customers • About 50% of sales via distributors/ system houses • Distributors are very knowledgeable and responsible for sales, installation services and after market • Reelcraft and Alemite own sales channels Distributors/system houses Local sales teams One Portfolio CMD 2014

  5. Partner testimonials Our partners express great pride and benefits working with SKF and having access to our full-line lubrication solutions offering Two leading brands, one global leader Some testimonials from our partners …... CMD 2014

  6. Two leading brands, one global leader. CMD 2014

  7. Loyal customers and partners – our key for success • Good net promoter score • Communications – unified market communications, external webinars, product launches • Service – improving availability, speed of response • Information – smart solutions for easy access information • 8 major product launches in 2014 • 48 trade shows • Training by product, solution & application • SKF LubCAD • Lubrication systems configurator • Web shop facility CMD 2014

  8. Services and asset life cycle offering • Our automatic lubrication systems are well prepared for integration with the other platforms • This enables other SKF units to enhance their asset life cycle offering and business – e.g. condition based lubrication for renewable industry • Together with our partners we have a full line offering of services in: • design, installation, commissioning, monitoring, maintenance and repair CMD 2014

  9. Global footprint Muurame, FI Enschede, NL Linköping, SE Corby, UK Banbury, UK Berlin, DE Shelby Township, US St Cyr, FR Chodov, CZ Hampton, US Columbia City, US Hockenheim, DE Cormano, IT St. Louis, US Walldorf, DE Changzhou, CN Osaka, JP Johnson City, US Changshu, CN Fort Mill, US Shanghai, CN Bangalore, IN Rosario, AR Supported bymany more sales offices + 5,000 partnerscovering the global market Manufacturing sites Product development sites CMD 2014

  10. Manufacturing efficiency and major projects • Optimizing the global manufacturing footprint and capacity by taking the best from the two merged companies • To further improve cost leadership Major projects • Relocation of sourcing and manufacturing to best cost countries • Investing in factory expansion Chodov CZ • Investing in a new facility in India • Relocation in France from Saumur to St Cyr • Relocation of St Louis factory CMD 2014

  11. Product portfolio and launches Over time the Lincoln and SKF products will be harmonised to feature the “best of the best” whilst investing to make the “best better” Productharmonisation 8 major launches in 2014 – three examples Next generation –20v Li Ion battery power grease gun PPS-30 – New compact pneumatic pump TLMR – Automatic lubricant dispenser CMD 2014

  12. What automated lubrication does for our customers? • INCREASE • Productivity • Service intervals • Safety • Sustainability • REDUCE • Energy consumption • Operating expenses • Downtime • Lubricant consumption • Waste SKF is leading the technology shift from manual to automatic lubricationand realising these business benefits CMD 2014

  13. Optimal lubrication is the key to a centralized system Click here to start the animation CMD 2014

  14. Increasing adoption rate for automatic lubrication • 80% of lubrication points are still manually lubricated • The adoption rate is increasing to capture the automatic lubrication systems benefits • Big opportunity for SKF Manuallubrication Automatic lubricationsystems Adoption rates key industries served 5-15% 1-10% 25-35% 5-50% 25-85% 80-95% CMD 2014

  15. Environmental and business impact • Automated lubrication uses 33% less grease than manual lubrication • Automated lubrication globally saves 200 million kgof grease per annum  =300,000 tonnes CO2e • SKF saves users 60,000 tonnes CO2e and SEK 2,000 million in cash in reduced grease cost per annum This with only 20% of all lubricationpoints using automated lubrication! Imagine the value if a company could combine their knowledge on bearings, seals, mechatronics, service and lubrication, and develop event-based automatic lubrication systems? CMD 2014

  16. Environmental and business impact • Automated lubrication uses 33% less grease than manual lubrication • Automated lubrication globally saves 200 million kgof grease per annum  =300,000 tonnes CO2e • SKF saves users 60,000 tonnes CO2e and SEK 2,000 million in cash in reduced grease cost per annum This with only 20% of all lubricationpoints using automated lubrication! CMD 2014

  17. Lubrication – key business message • Positive business development • Loyal customers and partners • Global coverage • Full line offering of products, services and solutions • Huge market potential to grow CMD 2014

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