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Industrial Market, Regional Sales and Service

"Increase customer productivity with advanced services and integrated solutions throughout the life cycle. Global reach through our regional structure and authorized channel partner network."

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Industrial Market, Regional Sales and Service

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  1. Industrial Market, Regional Sales and Service Presented by Vartan VartanianPresident Industrial Market, Regional Sales and Service

  2. Regional Sales and Service • We realize full life cycle value for industrial systems! • We increase customer productivity through: • Development and delivery of advanced services and engineering products • Innovative industry-leading integrated solutions throughout the life cycle • Global reach through our regional structure and authorized channel partner network The Power of Knowledge Engineering CMD 2013

  3. Industrial Market, Regional Sales and Service Regional Sales and Service Business Structure Regional Sales and Service Channel and PricingManagement withdistribution Solution,Production,Product Development with 23 SKF Solution Factory locations Focused Industries withStrategic Accounts 7 Sales Areas with Global Coverage 7 Regional Areas CMD 2013

  4. Profitable growth What we focus on • Working to improve customers’ productivity and sustainability around the world with a focus on industrial segments such as Food and Beverage; Marine; Metals; Pulp and Paper; and Mining • A global network – ease of access • Global distribution business • State-of-the-art supply chain management • Driving growth by leveraging SKFtechnology platform offers as well asSKF Solution Factory and Life Cycle Management (AEO) • Operational excellence to drive profitabilityand reduce total cost • Deliver proven value CMD 2013

  5. Agenda Industrial Market, Regional Sales and ServiceAgenda • Global business • Focused Industries and strategic accounts • Distribution • How we achieve operational excellence • Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries • Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development • Key business message

  6. Global business Industrial Market, Regional Sales and ServiceAgenda Global business Focused Industries and strategic accounts Distribution How we achieve operational excellence • Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries • Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development • Key business message

  7. 39% of SKF Group’s total net sales RSS sales share and proportion by geography in 2012 Net sales MSEK: 25,329 Operating margin: 12.5 % Numbers of employees: 6,479 Central East Europe & Middle East Africa China S&SE Asia West Europe North Europe Latin America North America CMD 2013

  8. Close to customers almost everywhere in the world Countries with Regional Sales and Service Sales business unit CMD 2013

  9. Regional Sales and Service - global business coverage Powertransmission Product service division System/product development Warehouses Remote diagnostic services SKF Solution Factory Condition monitoring centers Marine Marine Headquarters MarineSales Agents MarineService Stations Industrial Distributors Customized Seals Customized seals

  10. Regional sales and service in China Sales Offices Industrial Service Center Warehouses Remote diagnostic services SKF Solution Factory Marine Distributors Marine Headquarters Customized Seals

  11. Focused Industries and strategic accounts Industrial Market, Regional Sales and ServiceAgenda • Global business • Focused Industries and strategic accounts • Distribution • How we achieve operational excellence • Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries • Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development • Key business message

  12. Focused Industries and strategic accounts Mining Food and Beverage Metals Pulp and Paper Marine Deliver SKF equipped solutions OEM customers examples End user customers examples Optimizing the life cycle Equip with SKF knowledge CMD 2013

  13. Technology upgrade in wafer ovens • Wafer oven application in a bakery:A challenge for the end-user • Frequent re-lubrication required with costly high temperature lubricants • Limit to increase oven throughput, 446 °F near current grease performanceSKF Solution • SKF integral wafer oven units • Customer value • 5 years re-lubrication-free operation running 24/7, reducing 150 hours of labor and 88 lbs/yr/oven • Increased productivity through elimination of 26 hours of planned downtime • Increased temperature, 50 to 59 °F, allowed higher speed and increased throughput SKF technologies improved reliability, cost control and safety for a bakery group. SKF contributed to the design and development of a new, higher performing proving oven for the OEM supplier. Optimizing the life cycle CMD 2013

  14. 35 % 50 % A full asset life cycle approach Cost in the asset life cycle* Deliver SKF equipped solutions 12 % 3 % Optimizing the life cycle Equip with SKF knowledge * Source: Specht, G.; Beckmann, Ch.; F&E-Management. Schaeffer-Poeschel Verlag, Stuttgart 1996 CMD 2013

  15. Strategic accounts: The engines for profitable growth • Deeper knowledge of customer and their industry: Replication of solutions • Stronger relationships • More involvement in new projects: Innovations • More value creation and capturing through full life cycle approach • Accelerate profitable growth CMD 2013

  16. Distribution Industrial Market, Regional Sales and ServiceAgenda • Global business • Focused Industries and strategic accounts • Distribution • How we achieve operational excellence • Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries • Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development • Key business message

  17. Net sales Industrial Distribution within 2012 Industrial Distribution within SKF Group sales: 29 % CMD 2013

  18. Industrial Distributors Europe North 600 Branches NAM 2500 Branches Europe West 900 Branches China 250 Branches LAM 400 Branches CEEMEA 900 Branches S&SE Asia 550 Branches Industrial Distribution Network More than 6000* locations * Numbers are Industrial Distributors owned branches, not including Certified Rebuilders and sub-distributors

  19. Global programmes for stronger growth in Industrial Distribution • Channel Management: Increase level of mutual engagement and joint activities toward final customers • Education: Equip SKF and distributors' employees with arguments to defend SKF value proposition • Supply Chain efficiency: Cost savings in supply chain and inventory level optimization • Differentiation: Certified programs and Solution Factory CMD 2013

  20. Channel management Joint planning and acting Understand distributor drivers Set the basics Profitable growth with Distributors CMD 2013

  21. Process integration activities with distributors to improve supply chain efficiency • Goals: • Lower administration cost • Optimize capital employed • Reduce lost sales • Improve service level • Through: • IT Integration • Inventory Management • Collaborative forecasting CMD 2013

  22. How we achieve operational excellence Industrial Market, Regional Sales and ServiceAgenda • Global business • Focused Industries and strategic accounts • Distribution • How we achieve operational excellence • Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries • Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development • Key business message

  23. SKF Sales, Customer Service, SKF Distributor SKF SolutionFactory Technology • Challenges • Raise energy efficiency • Increase productivity • Decrease maintenance • Optimise designs • Reduce cost • … Customer Industries Evaluation of value Delivering SKF value consistently CMD 2013

  24. Understanding sales operations to achieve operational excellence in sales 100 % Potential sales capacity Activities not related to sales Face to face time customers Availability Sales capacity Off times and trainings CMD 2013

  25. Sales visits Time Customer visits: A key to grow opportunities and success Number of opportunities measured Business won Time CMD 2013

  26. ‘Unbeatable’ Customer Service A key role in driving customer satisfaction & loyalty • One of the Strategic Programs for 2016:‘Enhance the role of Customer Service & unlock the full potential’ • The overall objectives for Customer Service are to: • Increase customer satisfaction, loyalty and retention • Contribute to growing sales above market growth • Reduce waste and effective use of resources: “One Industrial Customer Service” We want to ‘raise the bar’ going forward – to further differentiate SKF in the marketplace Customer Service team in Indonesia Customer Service team in Hungary CMD 2013

  27. Latest innovative technologies Hose reels TLRC and TLRS Series New range of air-driven hydraulic pumps and oil injectors SKF Static Motor Analyzer Baker DX SKF Machine Condition Indicator SKF Acoustic Emission Enveloping SKF FX Bushings SKF Thruster Monitoring Hydraulic seals SKF Extreme temperature bearings SKF Extended Lifeplain bearing SKF ChainLube System 24 ServoActuator SKF Telescopic pillar BeyondZeroTM CMD 2013

  28. Validating savings at industrial customers SKF Documented Solution Program • Verified customer savings: 24 billion SEK • Verified savings in 2012: 4 billion SEK • Energy and sustainability calculations: • ~ 1,000 verified cases of reduction in CO2 • Total accepted/verified cases: ~40,000 • Coming from more than 25 industrial segments • 5 languages • 51 currencies can be converted CMD 2013

  29. Key business message Industrial Market, Regional Sales and ServiceAgenda • Global business • Focused Industries and strategic accounts • Distribution • How we achieve operational excellence • Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries • Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development • Key business message

  30. Key business message • Driving profitable sales growth in all 7 Sales Areas • Focused Industries will expand SKF offerings and value propositions • Growing distribution network as a key to customers world wide • Service business is a driver in the asset life cycle management approach • Strategic Accounts accelerating growth • Innovations driving long term sustainable profitable business • Supply chain value will be continuously increased CMD 2013

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