SKF guide

1. INTELLIGENT AND CLEAN GROWTH

2. Everywhere there is rotation, there is a good chance
that SKF products, capabilities and skilled colleagues
are providing value in the form of improved
operational performance and reduced emissions.

3. With the ABB 2030 sustainability
strategy, we are working with
our customers and suppliers to
implement sustainable practices across
our value chain and the lifecycle of our
products and solutions. SKF’s solutions
support us in meeting those targets.”
Outi Korkeakangas
Global Category Manager
Bearings for Large Motors & Generators
and Low Voltage Motors, ABB
“

4. Suzano is now on a journey of digital
development where SKF can be a part, and
predictive maintenance and more intelligent
analysis for failures will be key.”
Paulo Silveira
Industrial Director, Suzano
“

5. With the explosive growth of
EV in China in 2021, BYD looks
forward to deeper cooperation
with SKF, becoming the market
leaders together.

6. Competitive
• By far the largest industrial player
in the bearing industry
• Good momentum; growing market
share in the last four years
Tuned in
• Sustainability
• Electrification
• Automation
• Digitalization
• Regionalization
Collaborative
• Technologies/products/services
• Engineering/application knowledge
• Global position & reach
• Supporting our customers in
their strive for a sustainable future
Trusted
• Close customer relationships
• Deep understanding of a wide range of applications
• 100+ years of innovation
• Recognized leader in application
engineering and design
2022
We are in pole
position – let’s
accelerate!

7. Intelligent and clean growth
A DIFFERENT SKF 2030

8. Intelligent clean
• Customer offerings & solutions
• Portfolio management
• Digital value chain & processes
• Capital allocation and resource
deployment
• Tech applications
• Industries; minimize friction and waste
• Value chain; net zero emissions and high
transparency
• Business practice and high ethics

9. Double the business,
at improved margins
More focused
and efficient
Technical partner
of choice among
customers
Leading development
of sustainable
solutions
A DIFFERENT SKF 2030

10. Required investments
• Further acceleration of investments;
strict return requirements
• Over time, increase R&D expenditures
by 50% to support the growth agenda
Funding
• Increased investments will be
funded by actions to improve our
net working capital and by
continued cost reduction
A DIFFERENT SKF 2030

11. High-growth
segments
Portfolio
management
New
technologies
Services &
Aftermarket
Operate more efficiently – closer to customers
Regionalized and competitive supply chain
Accelerate technology development
Digitalize our full value chain
Growth areas Growth enablers
Intelligent and clean growth

12. High-growth
segments
Portfolio
management
New
technologies
Services &
Aftermarket
Operate more efficiently – closer to customers
Regionalized and competitive supply chain
Accelerate technology development
Digitalize our full value chain
Growth areas Growth enablers
Intelligent and clean growth

13. WHY HOW
High-speed
machinery
Cleantech
Automation
& Robotics
Agri, Food &
Beverage
An area of strength for SKF, where new,
emerging applications and existing
segments show high growth.
Combining the strength of our existing portfolio,
including magnetic, ceramic and high-performance
steel bearings.
A leader within renewable energy and
railway; growth expected within hydrogen
processing and carbon capture.
Leveraging our strong position in existing segments
and making use of our engineering capabilities and
relationships with OEMs.
Increasing investments in manufacturing
technologies and automated logistics
centres, where up-time is crucial.
Broad product offering and leading position in
bearing solutions combined with capability in
machine reliability.
Growing markets with wide and
demanding application needs.
Continue to build on our deep knowledge,
strong brand and ability to develop bespoke
products.
Targeting existing segments with high growth across
geographies
High-growth
segments
EXAMPLES
Areas with high growth, driven by
increased investments in development
of new technologies.
By capitalizing on our leadership within ceramic
bearings and established position as a preferred
technology partner.
Electric drives

14. Connectivity
Magnetic
bearings
Ceramic
bearings
Providing value to our customers in
the form of improved operational
performance and reduced emissions.
New technology and partnerships provides
scale and easy access to data analysis and
machine performance competence.
Magnetic bearings are ideal for
applications demanding high speeds
and low vibration.
By using magnetic bearings, you get an
extremely sustainable solution; a solution that
lasts longer, with lower energy consumption
and zero maintenance.
New requirements of high voltage, high
frequency and high speed in electric
applications make ceramic bearing the
most effective solution.
Leveraging our strong technology and
market position built on continuous
investments in ceramic capabilities.
New
technologies
Leveraging technology to grow in emerging industries
SKF RecondOil 19 million tonnes of industrial lubrication
oil is used every year – a circular use of
oil provides significant financial,
environmental and performance benefits.
Patented, innovative solution, enabling circular
use of industrial lubricants. Initial focus will be
on metalworking, hydraulics, mining and metal.
WHY HOW
EXAMPLES

15. STRENGTHS GROWTH POTENTIAL
• Global reach and close
customer relations
• Over 17,000 distributors
providing services
• Recognized leader in
application engineering
and design
• Industry leading in
artificial intelligence and
machine learning
• Transactional service business
• Scale up data-driven services
• Partnerships on data
gathering
• Supporting customer’s CO2
reduction ambitions
• Recurring revenue models,
from entry-level to
performance-based
Services &
Aftermarket
EXAMPLES
~40% of sales with attractive profitability
Aftermarket
Services
Maintenance
Condition monitoring
Remanufacturing
Engineering & design support
Rotation as a service

16. Intelligent selection of businesses
• Stricter performance
requirements on businesses
• Earn your place in the Group:
- profitability
- growth potential
- future proof
- sustainability
• Independent Automotive creates
strategic flexibility for the Group
Portfolio
management
We will address selected underperforming
businesses
Grow
Maintain
Trim Fix

17. Profitable growth in Automotive
Portfolio
management
WHY HOW
Strong sales growth
WHAT
Capture growth in
electrical vehicles
Expand in commercial
vehicles
Capture growth in
vehicle aftermarket
Refocus portfolio to
relevant segments
Rebuild drive control
portfolio
1
2
3
4
5
Clear leader in hi-speed bearings for
electric powertrains. Adding roller
bearings to further increase content
Asia truck & bus markets are
upgrading for longer service life,
improved quality and performance
Proven track-record in Europe,
leading the trend in Asia
Good growth potential in EMEA and
Americas as well as in Asian markets
SKF is gaining share with improved
organisational capabilities and profitability
Market and technology shift to
Electric Vehicles
Refocus fragmented portfolio on attractive
segments, products and customers
Autonomous driving brings new
opportunities in innovation for an
upgraded portfolio
Currently leading position in suspension
bearings – opportunities to consolidate
product portfolio in steering

18. High-growth
segments
Portfolio
management
New
technologies
Services &
Aftermarket
Operate more efficiently – closer to customers
Regionalized and competitive supply chain
Accelerate technology development
Digitalize our full value chain
Growth areas Growth enablers
Intelligent and clean growth

19. • Supporting the growth agenda
- High speed in electric applications
- Cleantech and new energy
- Services – built-in SKF knowledge
- Net zero enablers
• New manufacturing technologies
• Over time, increase R&D expenditures by
50% to support the growth agenda
Accelerate technology development
New customers
New
products
25% of growth
10% of growth
15% of growth
50% of growth
Existing customers
Existing
products
Leveraging customer insights to fuel
technology development

20. Accelerate technology development
Leveraging customer insights to fuel
technology development - examples
Connected products
Embedded sensors gather bearing
and machine data during operation,
enabling instant feedback and control
High-speed bearings
Specifically engineered to
meet the extreme needs of
electric drives, centrifugal
compressors and pumps
Food-line bearing units
Meeting hygiene, maintenance
and performance needs in
demanding environments
Manufacturing
New methods like laser cladding
and induction heat treatment
increase flexibility, reduce cost and
increase customer performance

21. Digitalize our full value chain Drive growth and reduce working capital
Design
Supply chain
Manufacturing
Sales
Distribution
Customer
• Significant progress has been made in
digitalizing SKF’s manufacturing operations.
• As part of our journey to become even more
relevant for our customers, further
investments will be made in connecting our
entire value chain: customers, sales, logistics,
manufacturing, supply chain and R&D.

22. Closer, quicker and more competitive
Regionalized and competitive supply chain
4-5closures per year
5billion in annual savings by 2025
> investments for profitable growth
> localization rates
Asia Pacific
>85%
60% → > 85%
Americas
60%
40% → 60%
Localization:
EMEA
95% → 95%
95%
targets
2025

23. Operate more efficiently – closer to customers Organizational evolution
Central
Regional Business area
From centralization… …to decentralization
Design
Supply chain
Manufacturing
Sales
Distribution
Customer
Design
Supply chain
Manufacturing
Sales
Distribution
Customer

24. 4 industrial regions
AUTO-
MOTIVE
MAG-
NETICS
MARINE
SEALS
LUBRI-
CATION
AERO
SKF
RECOND-
OIL
AMERICAS EMEA
INDIA & SEA CHINA & NEA
1 global
automotive
business
6 independent
business areas
Operate more efficiently – closer to customers
• Full end-to-end customer and financial accountability
• Central processes and structures in place
to coordinate global accounts & processes
• Lean central organization
• Central transformation office
to secure speed and execution
Customer driven business areas

25. Rickard Gustafson
President and CEO
Management team
Operate more efficiently – closer to customers
John Schmidt
Americas
Kent Viitanen
EMEA
Manish Bhatnagar
India & SEA
Patrick Tong
China & NEA
David Johansson
Automotive
Thomas Fröst
Independent & Emerging Businesses
Joakim Landholm
Operations & Digital Transformation
Victoria Van Camp
Technology Development
Niclas Rosenlew
Finance
Mathias Lyon
Legal
Ann-Sofie Zaks
People

26. High-growth
segments
Portfolio
management
New
technologies
Services &
Aftermarket
Operate more efficiently – closer to customers
Regionalized and competitive supply chain
Accelerate technology development
Digitalize our full value chain
INTELLIGENT AND CLEAN GROWTH

27. A DIFFERENT SKF 2030
Double the business,
at improved margins
More focused
and efficient
Technical partner
of choice among
customers
Leading development
of sustainable
solutions

28. Q&A