1. 7 Lubrication Robert Law Director Business unit Lubrication
13 April 2017
CMD 2014

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
2004
2005
2006
2007
2008
2009
2010
Lincoln acquisitions
Alemite (USA)
Lincoln Helios India
Reelcraft (USA)
CMD 2014
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
CMD 2014

4. Go to market structure Automatic lubrication systems
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
13 April 2017
CMD 2014

5. Two leading brands, one global leader
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
CMD 2014

6. Two leading brands, one global leader.
CMD 2014
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 Supported by many more sales offices +
Muurame, FI
Enschede, NL
Corby, UK
Linköping, SE
Shelby Township, US
Banbury, UK
Berlin, DE
Columbia City, US
Hampton, US
St Cyr, FR
Chodov, CZ
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 by many more sales offices +
5,000 partners covering the global market
Manufacturing sites
Product development sites
CMD 2014
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
CMD 2014

11. 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
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 lubrication and realising these business benefits
CMD 2014
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
Manual lubrication
Automatic lubrication systems
Adoption rates key industries served
5-15%
1-10%
25-35%
5-50%
25-85%
80-95%
CMD 2014
13 April, 2017
CMD 2014 14

15. 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 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 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
CMD 2014

16. 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 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 lubrication points using automated lubrication!
CMD 2014
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
CMD 2014