Transcript Slide 0

Industrial Market, Strategic Industries
© SKF Group
Slide 0
16 July 2015
Speakers
25 min
Rakesh Makhija
President
Strategic Industries
15 min
Rutger Barrdahl
Director
Railway and Off-highway
15 min
Ole K Jødahl
Director
Industrial Drives
© SKF Group
5 min
Key business message & Summary
15 min
Q&A
CMD 2013
Agenda
Strategic Industries agenda & overview
Significant news
Strategy and market direction
Value and Cost leadership
Asset Life Cycle – ‘every business must have a service business’
SKF BeyondZero
Outlook and key business message
© SKF Group
CMD 2013
Industrial Market, Strategic Industries
Net Sales 2012 = SEK 20,204 million
No. of employees = 19,096
Full responsibility for sales to both OEM and end users, as well as business
development, manufacturing, and engineering
% of net sales by geographical area (2012):
Middle East, Africa
0,04%
Asia, Pacific
22%
Europe
51,4%
North America
26,2%
© SKF Group
CMD 2013
Film
Voice of the Customer – what is important to them
Energy efficiency
Reliability
Cost reduction
Uptime
Partnership
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CMD 2013
Significant news
Aerospace
Significant news
Long-term contract worth SEK 900 million with Turbomeca
Awarded key bearing programs with the industry leaders (Pratt GTF, Bell 525,
Eurocopter X4, Safran LEAP X)
Renewed long-term agreements with major partners such as GE and Agusta- Westland
SKF Aerospace Innovation Centers with Penn State Erie, The Behrend College, and
a co-Chair with INSA Lyon dedicated to the study of lubricated interfaces in aerospace
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CMD 2013
Railway
Significant news
Start up of production and global launch of a new
range of Tapered Roller Bearing units (AAR) for
freight cars, strengthening our role in the large
freight wagon markets.
Major orders of wheel set bearings (TBU) for very
high speed trains (>300 km/h) in China, with the
customers Tangshan Loco and Changchun Railway
Co.
Very strong overall growth in our Chinese railway
business for passenger train applications.
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CMD 2013
Renewable Energy
Significant news
Three-year agreement signed with Siemens Windpower for supply of the new generation
SKF Nautilus bearings
Success with SKF WindCon systems to Vestas Services in multiple markets
Supplier and development partner to David Brown Wind for gearbox development for a
multi-megawatt offshore wind turbine model
SKF in forefront development in the ocean energy market with supply agreements with
several manufacturers of wave and tidal turbine devices
Launch of the SKF Wind Industry Quality Standard
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CMD 2013
Traditional Energy
Significant news
Extended service contract with two major oil producers on the Norwegian shelf,
SEK 40 million over 5 years
Service contract with major USA oil & gas pipeline (20,000km) in the US,
3 years SEK 20 million
Contracts for condition monitoring, bearings and maintenance services with a major
Latin American oil company for SEK 20 million over 3 years
Supplying Magnetic Bearing technology for two new major off shore projects in Australia
for the Ichthys Gas Field
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CMD 2013
Industrial Drives
Significant news
Received large prototype orders from major Chinese
and American air-blower customers for our new high
speed permanent magnet motors using magnetic
bearings
Tripled seal sales to a leading German gearbox
producer. We are the main seal supplier to several
of their manufacturing locations
New product start of Full Complement Cylinder Roller
Bearings in a market that was traditionally dominated
by our competitors in Germany
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CMD 2013
Precision
Significant news
Large order achieved in material joining
applications for Automotive industry, to supply
SKF Electromechanical Cylinders (based on
SKF superior roller screw technology)
Global launch of new telescopic pillar for
ophthalmic and infant care devices
Initiated Super Precision bearings production in
Charleston, US to better serve the North America
machine tool market
Machine Tool Competence Centre in Shanghai
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CMD 2013
Lubrication
Significant news
Photo: BEUMER Group GmbH & Co. KG
Equipped BEUMER belt conveyer complex for
unloading iron ore vessels in Malaysia with
100 SKF automatic lubrication systems
Secured Oil Circulation System and Grease
lubrication systems for three new machines
at Metso Paper Sweden AB
Supplying 25 Automatic Lubrication System
including installation, testing and documentation
to the Norwegian Public Roads Administration
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CMD 2013
Strategy and market direction
SI agenda – short to medium term
• Making growth happen – profitably
• Every business must have a service business
• Manufacturing Development – cost, quality, and safety
• Execute SI organization efficiency programs – footprint, stock optimization,
and cost reduction
• China, Germany, USA, and India
• M&A
• SKF BeyondZero portfolio
• Building a great SI organization – meritocracy, excitement and vibrancy
Value and Cost Leadership – the road to sustained leadership
© SKF Group
CMD 2013
Capture the full potential of the asset life cycle
Idea
Design
Develop
Manufacture
OEM Supply
-
End User Install
- Commissioning > Site Acceptance Test
- Asset Register development & spare parts plan
- Maintenance strategy deployment
Operate
- Operator Inspections (technology & processes)
- Condition Monitoring & prognostics
- Remote Diagnostics & Onsite Investigations
- Maintenance & Reliability Engineering
- Mechanical Services / Troubleshooting
- Root Cause Failure Analysis
- Reliability analysis & improvement assessment
Monitor
Maintain
Repair
Restore
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CMD 2013
Concept evaluation & simulation
Detailed calculations & virtual testing
Design validation & real testing
Series production
Factory Acceptance Test > OEM Asset
Asset life cycle management for wind industry
Design and develop
•Engineering Consultancy Services
•Calculation and simulation tools
•Design development partnership with turbine manufacturers
•R&D and testing activities
Specifications
Manufacturing and testing
•Customized mainshaft solutions
(Nautilus, Self aligning / CARB and rigid)
•Industry specific gearbox offerings;
(HC-CRB, separable HC-CRB, black-oxidized
•Generator solutions;
(XL-hybrid bearings, Insocoat bearings)
•Sealing solutions, Lubrication systems
(Active involvement in
standardization
committees and
other industry bodies)
Installation
Maintenance & Repairs
•Bearings & seals replacement parts
•Gearbox Spare part kits
•Gearbox refurbishment services
•Logistic services
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CMD 2013
•Alignment services
•Bearing mounting services
Operate and Monitor
•WindCon monitoring system
•Remote monitoring services
•Lubricants
•Mechanical & Training services
•Asset Efficiency programs
Value built around Asset Life Cycle Management
CMD 2013
Repair
Redesign
Install
Manufactur
e
Develop
Design
Idea
© SKF Group
Operate
Monitor
Maintain
END
USER
OEM
Value propositions for wind aftermarket
Spare parts
Driveline services
Condition based maintenance
Remote monitoring & Asset Management Services
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CMD 2013
Availability – Spare Parts Management Program for wind
SKF Spare Parts Management
As wind farms age, the O&M
cost increase
In order to maintain turbine
performance and reliability, a
Spare Parts Program is needed
to ensure
• Availability of
key and critical components
• Short lead times and
committed service levels
Spare parts for gearboxes,
main bearings, generators,…
• Bearings
• Housings
• Seals
• Lubrication systems
© SKF Group
CMD 2013
Lead time
Availability
Levellized Cost of Energy (LCOE) - Driveline services for wind
SKF driveline services
Actively develop and implement
new, efficient solutions and
services
Root cause failure analysis on
large drive train components
like main shaft and gearbox
LCOE reduction by early
involvement!
Development of upgrade
packages
Wind turbines specific
improvement programs
Offer
Drive line service offers:
• Upgrading instead of replacing
• Bearing remanufacturing
• Application analysis
• Training
© SKF Group
CMD 2013
Reduce maintenance – Condition Based Maintenance
for wind
Clear industry trend to equip
multi MW WTGs with condition
monitoring systems
Large utilities upgrade their wind
farms with CMS
Market focus still on hardware
Values lies in the efficient
remote diagnostic capabilities
and expertise.
Condition Based Maintenance
WindCon + Active
WindCon
Vattenfall – Vestas
V80 – Esbjerg Sweden
CBM enables value positioning in terms of:
• Upgrading customer assets
• Increasing power output
• Increasing uptime
Maintenance
cost
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CMD 2013
Availability
Oil and gas services
Maintenance strategy
Business
impact
1
2
3
4
Maintenance complexity
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CMD 2013
Mechanical Support
Alignment, Balancing
Condition Monitoring
Electrical Motor
Monitoring
Advanced Diagnostics
Turbomachinery & Pumps
Magnetic Systems services
Installed base:
Large installed base and growing
Worldwide organization
Activities:
Field support service (tuning, commissioning, assistance)
Spare parts
Retrofit and upgrades
Maintenance & training
Success factors:
Short lead time and service level commitment
Competent service organization
New Collaborative Business Model
© SKF Group
Slide 24
16 July 2015
Traditional Power services
Probabilistic risk assessment (PRA) is a
systematic and comprehensive
methodology used to evaluate risks
associated with complex engineered
systems and facilities. In a PRA, risk is
characterized by two quantities:
the magnitude (severity) of the possible
adverse consequences, and
the likelihood (probability) of occurrence
of each consequence.
SKF (ERIN) has established a proven
track record as the leading provider of
Probabilistic Risk Assessment (PRA)
consulting services to the power industry.
© SKF Group
CMD 2013
Lubrication - service
Rautaruukki Steel Mill, Raahe,
Finland
20,000 lubrication points
automated by SKF
“Ruukki Metals OY has signed a
lubrication service contract with
SKF in Finland.
The service covers several areas of
the mill and is worth 500,000 euro”
Ruukki
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CMD 2013
Lubrication – Top of Rail (TOR) Conditioning Systems
We undertake full responsibility for installation, commissioning, including civil works.
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CMD 2013
The SKF BeyondZero portfolio
The SKF BeyondZero portfolio – Strategic Industries
ELI spherical plain
bearing
Servo actuator
SKF Nautilus
SKF Flowline
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CMD 2013
Food line Y-bearings
SKF E2DGBB
High endurance
Slewing bearings
Dry lubrications for
conveyor belts
Cylinder
lubrication unit
SKF Solar Hub
SRB + CARB
CTBU low friction
seal
Titanium bearings for
Aerospace
SKF solar linear
actuator
Energy efficient
blowers
Active magnetic
systems
Sour gas compressor
bearings
Business Unit presentations
Outlook and key business message
Performance 2011 – 2013 YTD
Net sales
Operating margin
© SKF Group
CMD 2013
2011
2012
Half year
2012
Half year
2013
20 807
SEKm
20 093
SEKm
10 792
SEKm
9 348
SEKm
13.9%
9.8%
9.8%
9.2%
(14%) restated
(10.2%)
(10.7%)
(11.2%)
Market trend per industry
SI overall outlook:
•Modest improvement in overall business environment
•Speed of change will differ between segments
•China growth expected to improve
•Drive life cycle growth strategy
Aerospace:
Strong demand driven by single aisle demand, Boeing and Airbus, supporting a stable, high, build rate
Continuing growth in RIC
Railway & Off-highway:
Railways: Asia coming back on growth track, Europe and USA in stable mode
SKF: Continued strong Agri business
Contraction in mining related business
Renewable energy:
SKF: Renewable Energy in a phase of business recovery, positive projections
Ongoing quick globalization of industry, with new emerging markets developing
Trend of expanding turbine sizes and wind industry going offshore
© SKF Group
CMD 2013
Market trend per industry
Traditional energy:
Deepwater and subsea exploration & production continue to be growth areas
Natural gas boom impacting future investments in transportation (pipelines)
Hydraulic fracturing technology now being implemented in UK and China
Industrial Drives:
Modest global business growth
Energy efficiency importance increases - The BeyondZero portfolio and our new launches
supports the growth
SKF: New range of application specific performance solutions
Precision:
Moderate business recovery with higher growth in USA, China and India
SKF: Increase regional manufacturing footprint
SKF: Ongoing product cost reduction programs
Lubrication:
SKF: Increased focus on key developing segments (Agriculture, Oil & Gas)
SKF: Integration and synergy-building continue according to plan
SKF: Focused on key growth markets (Russia, Asia, and Latin America)
© SKF Group
CMD 2013
Key business message – Strategic Industries
Growth drivers
•
Every business must have a service business
•
China, Germany, USA, and India
•
The SKF BeyondZero portfolio
Competitive advantage
•
Life cycle management
•
Five technology platforms
•
Global footprint with local competence
Cost efficiency
© SKF Group
CMD 2013
•
Manufacturing Development – cost, quality, and safety
•
Execute SI organization efficiency programs – footprint, stock
optimization, and cost reduction
•
Business Excellence across SI
The Value and Cost Leadership Equation
1930 Oil & Gas Journal ad
© SKF Group
CMD 2013