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Electrical and Two- Wheelers Business Unit

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Electrical and Two- Wheelers Business Unit Electrical and Two- wheelers business unit Presented by Franco Ferro Director, business unit Electrical and Two-wheelers SKF Capital Markets Day 2008 Electrical & two-wheelers global presence ERC Fontenay Airasca St Cyr Sopot Cassino Pune Shanghai Bangalore Bangalore Factories Jakarta Technical Center Development Center Tortuguitas • 3,400 employees worldwide • 8 factories in 7 countries • Product development in Europe and Asia Electrical & two-wheelers main customers Home appliance Power tools Electrical motors Two-wheelers Vehicle electric systems Main electrical & two-wheelers applications Electrical & two-wheelers - all platforms Bulgaria outlook SKF Bulgaria factories Deep groove ball bearings Karnare Forgings & rings Kalofer Sopot Seals SKF standard implementation - Sopot SKF standards are being implemented to work with top class customers, like e.g. Electrolux 20Ind06e =x: 100 2006 = 100 % 700 70% 600 60 >500 >50 500 50 400 Sopot 40 Sopot share 300 Sales to 30 Elctrolux of SKF 200 20 Sales to Electrolux 100 10 0 0 2006 2007 2008 2005 2006 2007 2008 Automatic seal process implementation - Kalofer The factory is now the main supplier for small ball bearing seals for West European factories New business for industrial applications - trackstar seal for track chain New ring rolling process - Karnare A new ring rolling process is implemented in 2008 for small ball bearing rings in order to save 12% of raw material Environmental management system Certified to : SS-EN ISO 14001: 2004 Standard Approved by DNV Cost reduction & profitable growth Global manufacturing optimization • Leveraging on Tortuguitas plant for American market • Restructuring of Fontenay plant • Full integration of Sopot into SKF brand • Strengthening of best cost country footprint Profitable growth Top load 500 through value 450 washing 400 350 Ind e m 300 x 2004 = 100 achine 250 drum a 200 dded 150 unit 100 solutions 50 0 04 Delivered 6 million drum units up to April 2008 05 06 07 Growth in Asia • Leading supplier in India and Indonesia • Strong growth driven from • Partnership and relationship with leading customers and global supply to Japanese (Asia, Euro • Introduction of value added products pe, Latin Am two wheelers production two wheeler manufacturers erica) 15% average growth per annum in the last 10 years New product solutions Steering column One way clutch (for two-wheelers) (for two-wheelers electric start motor) • Customer advantages: • Customer advantages: - Simplified assembly operations - Simplicity - No re-lubrication required, easily - Compactness replace existing system - Weight reduction - Better protection against contamination - Integrated ring gears - Long service life - Total cost reduction New product solutions Energy efficient small bearings Autobalance (for electric motors) (for power tools) • Customer advantages: • Customer advantages: - Reduced vibrations - Reduced vibrations - Higher speed capability +15% - Operator safety and health - Reduced running temperature - Compactness - Improved performance - Improved performance - Higher service life Key business messages • Partnership with leading customers • Increased value to customers (value added solutions) • Cost reduction • Focus on fast growing areas.
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