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7 Lubrication Robert Law Director Business unit Lubrication
© SKF Group Timeline and acquisitions Willy Vogel AG (Germany) Sommers (Sweden) Safematic (Finland) Alemite (USA) Reelcraft (USA) ALS (Canada) Lincoln (USA) SKF acquisitions Lincoln acquisitions Lincoln Helios India Cirval (Argentina) Global leader in the automated lubrication systems market CMD 2014
© SKF Group Competitive advantages – lubrication business Broadest offering in the industry Global presence and local knowledge Premium product brands Experienced employees and partners CMD 2014
© SKF Group 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 Customers One Portfolio Local sales teams Distributors/ system houses CMD 2014
© SKF Group 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
© SKF Group Two leading brands, one global leader. CMD 2014
© SKF Group 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 trade shows Training by product, solution & application SKF LubCAD Lubrication systems configurator Web shop facility CMD 2014
© SKF Group 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
© SKF Group Global footprint St. Louis, US Walldorf, DE Hockenheim, DE Berlin, DE Chodov, CZ Enschede, NL St Cyr, FR Muurame, FI Cormano, IT Corby, UK Manufacturing sites Johnson City, US Shelby Township, US Hampton, US Columbia City, US Changshu, CN Changzhou, CN Osaka, JP Bangalore, IN Rosario, AR Shanghai, CN Fort Mill, US Product development sites Supported by many more sales offices + 5,000 partners covering the global market Linköping, SE Banbury, UK CMD 2014
© SKF Group 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
© SKF Group Product portfolio and launches Product harmonisation Over time the Lincoln and SKF products will be harmonised to feature the “best of the best” whilst investing to make the “best better” 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
© SKF Group What automated lubrication does for our customers? REDUCE Energy consumption Operating expenses Downtime Lubricant consumption Waste INCREASE Productivity Service intervals Safety Sustainability SKF is leading the technology shift from manual to automatic lubrication and realising these business benefits CMD 2014
© SKF Group Optimal lubrication is the key to a centralized system Click here to start the animation CMD 2014
© SKF Group 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 Manual lubrication Automatic lubrication systems 5-15% 1-10%25-35% 5-50% 25-85% 80-95% Adoption rates key industries served CMD 2014
© SKF Group Environmental and business impact Automated lubrication uses 33% less grease than manual lubrication Automated lubrication globally saves 200 million kg of grease per annum =300,000 tonnes CO 2 e SKF saves users 60,000 tonnes CO 2 e and SEK 2,000 million in cash in reduced grease cost per annum This with only 20% of all lubrication points 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
© SKF Group Environmental and business impact Automated lubrication uses 33% less grease than manual lubrication Automated lubrication globally saves 200 million kg of grease per annum =300,000 tonnes CO 2 e SKF saves users 60,000 tonnes CO 2 e and SEK 2,000 million in cash in reduced grease cost per annum This with only 20% of all lubrication points using automated lubrication! CMD 2014
© SKF Group 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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