October 30, 2007 © SKF Group Slide 0 from a component industry perspective

Presented at Chalmers Energy Conference Presented by Olle Bankeström Programme Manager, Application Development Gothenburg 2012-03-28 1SKF in wind energy

October 30, 2007 © SKF Group Slide 2 Snapshot of wind energy in 2005

The wind energy market 2005 SKF position in wind energy 2005 • Mainly a European centered industry • Well connected with several leading • manufacturing mainly wind turbine & gearbox in Germany, Denmark & Spain. manufacturers • Installation of 11 542 MW (2005) • Offering range of standard bearings. • Totally installed 59 399 MW • Manufacturing of LSB-Wind range in • Average turbine size installed; 700 Germany and Sweden kW • Wind energy business represented around 1% of SKF Group global sales

Annual Wind Power Development Actual 1990-2005 & Forecast 2006-2010 30,000

25,000

20,000

15,000 MW

10,000

5,000

0 1990 1995 2000 2005 2010

Source: BTM Consult ApS - March 2006 Europe USA Asia Rest of World Existing

October 30, 2007 © SKF Group Slide 3 Snapshot of wind energy in 2010

The wind energy market 2010 SKF position in wind energy 2010 • Industry quickly becoming global with • Established key-supplier and China developed to largest market. development partner with most leading • Wind turbine manufacturing well wind turbine & gearbox manufacturers. distributed to China, Germany, • Close interaction with leading design Denmark, India, Spain. USA, S. Korea consultants established and other emerging markets • Industry customized offering range • Installation of 39 404 MW (2010) from • Totally installed 199 520 MW several platforms. • Aftermarket business potential • Manuf. of LSB-Wind range in Germany, gradually becoming significant Sweden, France, USA, China and • Average turbine size 2010; >1600 kW India • Wind energy business represented 4-5

Annual Wind Power Development % Actual 1990-2010 & Forecast 2011-2015 90,000 of SKF Group global sales 80,000

70,000

60,000

50,000 MW 40,000

30,000

20,000

10,000

0 1990 1995 2000 2010 2015

Source: BTM Consult - A Part of Navigant Consulting - March 2011 Europe USA Asia Rest of World Existing

October 30, 2007 © SKF Group Slide 4 Global wind manufacturing structure & SKF large size bearing-wind mfg footprint

Major turbine & gearbox OEM market Major turbine OEM market Major gearbox OEM market Smaller/emerging turbine OEM market Emerging/potential turbine OEM market

Source:October 30, 2007 SKF © SKF Group Slide 5 Global wind manufacturing structure & SKF large size bearing-wind mfg footprint

Core of Wind-Offshore development and installations. Expected business growth area 2012-2015; USA and Canada. Major growth area: China, India, South Korea,

Major turbine & gearbox OEM market Major turbine OEM market Next emerging manufacturing Major gearbox OEM market region: Latin America, mainly Smaller/emerging turbine OEM market Brazil & Argentina Emerging/potential turbine OEM market

Source:October 30, 2007 SKF © SKF Group Slide 6 Globally leading suppliers of wind turbines

Top-10 Suppliers (Global) in 2010 % of the total market 39,404MW (PRC) GE WIND (US) 9.6% 9.5% (GE) 7.2% GROUP (PRC) (IND) 6.9% 11.1% DONGFANG (PRC) 6.7%

GAMESA (ES) 6.6%

VESTAS (DK) 14.8% SIEMENS (DK) 5.9%

UNITED POWER Others 20.9% (PRC) 4.2% Source: BTM Consult - A Part of Navigant Consulting - March 2011

October 30, 2007 © SKF Group Slide 7 SKF contribution to wind turbine technology

Condition Gearbox bearings Engineering Automatic distributed Monitoring TRB/CRB/SRB/CARB/DRTRBConsultancy lubrication system WindCon/WebCon Services Pitch bearings

Monitoring and Sealing solutions diagnostics services Plain bearings

Mainshaft bearing(s) NautilusTM, , SRB/CARB, Mechanical repairs & TRB, DRTRB/CRB refurbishment

Maintenance tools and grease Mainshaft housings Generator bearings Couplings and locknuts DGBB/InsoCoated/Hybrid Yaw bearing Bolt tensioning tools Tower alignment services

October 30, 2007 © SKF Group Slide 8 2Market challenges and technology development

October 30, 2007 © SKF Group Slide 9 Major trends in Wind Energy

• Quick globalization of an emerging industry • Massive growth by leading Asian turbine manufacturers • Going into extreme climates; Deserts, Arctic areas • Industry going Offshore -> new requirements on turbines and O&M. • Expanding turbine sizes, MMW-class gaining importance • Direct drive turbines expansion versus gearbox-equipped • Major expansion and maturing of windfarm service business • An industry driven (and limited) by political decisions.

October 30, 2007 © SKF Group Slide 10 Recent SKF market launches towards wind energy Remote analysis New CRB-design & monitoring New pitch with services of wind bearing extra-high carrying farms capacity + new design with (2010) separable improved version corrosion protection WindCon 3.0/WebCon for early detection of mechanical failures Nautilus™ -unit with segmented cage for minimized friction

Automatic centralized lubrication kits for reduced maintenance costs. XL Hybrid bearings with ceramic balls for superior insulation of wind-generators

October 30, 2007 © SKF Group Slide 11 Early warning of turbine problems; SKF WindCon

Wear/ prewarning time (analysing, documentation, planning) damage

breakdown x human sense velocity / x exchang enveloping endoscopy/ e parts initial of vibration gearbox oil debris damage signal

x

time measureable damage

October 30, 2007 © SKF Group Slide 12 SKF WindCon for improved windfarm efficiency

Benefits & Values: SKF Service: • Vibration measurement to detect initiating failures Installation - Monitoring – Analyzing – before they lead to major breakdowns Predictive maintenance – “top-of-turbine” • Monitor all mechanical components and sub-systems repairs, spare part management • With predictive maintenance, better utilisation of service teams on shorter planned stops SKF Wind Industry Service Centers all ove • Reduce overall costs for maintenance, repair and the world are monitoring around 1000 turbines sparepart in the windfarm • Improve overall uptime of the windturbine

• IncreaseOctober 30, 2007 © SKF overall Group Slide 13 returns on windfarm investments 3Knowledge engineering with SKF

October 30, 2007 © SKF Group Slide 14

From an SKF perspective we can:

Take a system approach and integrate knowledge CASE: The gearbox and the generator that were related BENEFIT: Finding the root cause

Bridge between involved parties e.g. OEM and end user CASE: The generator that kept failing BENEFIT: Increased service life

Benchmark with other industries CASE: Very reliable gearboxes in railway, trucks and automotive BENEFIT: Sharing experience

October 30, 2007 © SKF Group Slide 15 The gearbox and the generator that were related...

Gearbox, split torque flow

Input Output

Floating Locating Bearing Bearing

Benefit: Finding the root cause

October 30, 2007 © SKF Group Slide 16

From an SKF perspective we can:

Take a system approach and integrate knowledge CASE: The gearbox and the generator that were related BENEFIT: Finding the root cause

Bridge between involved parties e.g. OEM and end user CASE: The generator that kept failing BENEFIT: Increased service life

Benchmark with other industries CASE: Very reliable gearboxes in railway, trucks and automotive BENEFIT: Sharing experience

October 30, 2007 © SKF Group Slide 17 The generator that kept failing…..

From SKF Brochure 6160 Electrically insulated bearings Benefit: Increased service life

October 30, 2007 © SKF Group Slide 18 Product development based on market needs

Providing customer value through new ”Outside -> In !!” developments

Information Analysis Insights SKF Engineered Solution

Convert market challenges Integrate knowledge based on into new developments full asset life cycle from different functions and platforms

October 30, 2007 © SKF Group Slide 19

From an SKF perspective we can:

Take a system approach and integrate knowledge CASE: The gearbox and the generator that were related BENEFIT: Finding the root cause

Bridge between involved parties e.g. OEM and end user CASE: The generator that kept failing BENEFIT: Increased service life

Benchmark with other industries CASE: Very reliable gearboxes in railway, trucks and automotive BENEFIT: Sharing experience

October 30, 2007 © SKF Group Slide 20 ”SKF talk about their gearbox experiences” Thirty years of development in other transmissions

Locomotives Trucks Cars

Power then / now 500 kW / 1 MW 200 / 400 kW 50 / 100 kW

Power per kilo Almost doubled Doubled More than doubled

Bearing or other (promille) similar problems (to ~ 0) (to ~ 0)

Development Mounting Cleanliness Cleanliness priorities Dynamics Mounting Stiffness Noise Stiffness Sealed bearings Lubrication Lubrication

”Active bearing” 2,5 kg 2 kg 0,5 kg

Expected service 25 yrs / 100000 h 15 yrs / 50000 h 15 yrs / 5000 h life October 30, 2007 © SKF Group Slide 21 Thank you for your attention !

SKF The Knowledge Engineering Company

October 30, 2007 © SKF Group Slide 22