Transcript Document

Industrial Market,
Regional Sales and Service
SKF Capital Markets Day ● 10 September 2014
© SKF Group
Slide 1
17 July 2015
Speakers
• Vartan Vartanian
President, Regional Sales and Service
• Christian Gill
Director, Service Technologies &
Industrial Solutions
• Thomas Frost
Director, Industrial Seals and Marine
business unit
© SKF Group
CMD 2014
1. Who we are
Presented by Vartan Vartanian
© SKF Group
Slide 3
17 July 2015
1. Who we are
2. Our business
3. Service Technologies
and Industrial Solutions
4. Marine Business Unit
5. Key Business Message
Regional Sales and Service
Our value proposition:
We realize full life cycle value for industrial systems to
increase customers’ profitability and productivity.
Our offer:
© SKF Group
CMD 2014
•
Development and delivery of advanced
services, technologies and engineering
products
•
Industry-leading innovative solutions
•
Global reach through our regional
structure and authorized channel partner
network
RSS sales share and proportion by geography in 2013
Net Sales SEKm:
24,217
Operating margin:
Number of employees:
12.1%
7,426
North America
Latin America
West Europé
Central East Europe and Middle East Africa
North Europé
Asia Pacific
China
© SKF Group
CMD 2014
39% of SKF
Group’s total
Net Sales
Regional Sales and Service Business Structure
Focused Industries
Pulp & Paper, Metals, Mining,
Food & Beverage
Marine Business Unit
Service Technologies and
Industrial Solutions
Industrial Seals and
Technology
Channel Management
7 Sales Areas
© SKF Group
CMD 2014
What we focus on
● Improvement of customers’ productivity and
sustainability within focused industries such as Food
and Beverage; Marine; Metals; Pulp and Paper; and
Mining
● Well defined global network (ease of access)
● Strong global distribution business
● State-of-the-art supply chain management
● Leverage of SKF technology platform offers,
and Life Cycle Management to drive growth
● Global service delivery infrastructure with
28 SKF Solution Factory locations
● Advanced innovation in condition monitoring
and industrial seals
● Operational excellence to drive profitability
and reduce total cost
● Delivery of proven value
Profitable growth
© SKF Group
Regional Sales and Service - global business coverage
Europe North
600 Distributor branches
Europe West
North America
2 500 Distributor branches
900 Distributor branches
China
CEEMEA
800 Distributor branches
250 Distributor branches
Asia Pacific
500 Distributor branches
Latin America
350 Distributor branches
Distributor branches
Marine
SKF Solution Factory
System/product
development
Condition monitoring
design & production
centers
Warehouses
Seals factories
Customized Seals
Product service
division
Power
transmission
Maintenance
products
© SKF Group
Remote
diagnostic service
centers
2. Our business
Presented by Vartan Vartanian
© SKF Group
Slide 9
17 July 2015
1. Who we are
2. Our business
3. Service Technologies
and Industrial Solutions
4. Marine Business Unit
5. Key Business Message
Focused Industries
© SKF Group
CMD 10
Slide
2014
A multi platform based portfolio
for the food and beverage industry
Preparation
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CMD 2014
Heating
Cooling
Packaging
Food and Beverage:
Market development and strategic programs
Industry overview and trends
• Macro F&B Economic Index showing constant growth
(Dow Jones), increasing urbanization trend (UN)
• Global food industry grew by 2.6% in 2013, estimated to
increase by 24.5% from 2013 to 2018 (Marketline, 2014)
F & B strategic programs
• Increasing regulations for ensuring Food Safety
© SKF Group
Achieve market leadership in targeted countries
• Make SKF the preferred partner through selling added value to end users and through asset life cycle
management for OEMs
Position SKF as the Food and Beverage specialist
• Establish knowledge partnerships with Strategic Accounts and SKF Distributors
• Raise market awareness about SKF full capabilities for Food and Beverage Industry
Leverage and develop SKF portfolio to Food and Beverage
• Provide a cross-platform portfolio to meet industry needs and requirements
CMD 2014
© SKF Group
SKF Capital
Slide
13
Markets
10 September
Day
2014
Metals: Market development and strategic programs
Industry overview and trends
• Moderate steel growth globally (MEPS 2014)
• Low metal prices without sign of short term recovery
(Bloomberg 2014)
• Asia engine of growth but many mills make losses or are
marginal in profit, especially in China (Taipei Times 2014)
Metals strategic programs
• OEM market is down and bigger investments are not
expected; upgrades and service activities are focused
(SMS Group press release 2014)
© SKF Group
Increase market share in rolling mill business
• Strategic accounts driving the offer implementation through SKF knowledge leadership
Retain and expand business in continuous casting
• Improve service life in casters in combination of reduction on environmental impact in operation
Replicate SKF solutions and grow service sales
• Drive business with existing solutions and use synergies of existing solutions from other
segments
CMD 2014
© SKF Group
SKF Capital
Slide
15
Markets
10 September
Day
2014
Pulp and Paper:
Market development and strategic programs
Industry overview and trends
P & P strategic programs
1. Market pulp prices will remain stable (RISI*)
2. Near-future demand for pulp to be supplied from LAM
(Pulp & Paper Magazine 2014)
3. Continued growth in packaging & tissue grades globally (RISI)
4. Outsourcing trend in NAM/LAM/Europe for maintenance
activities (e.g. Voith 2013)
5. Shift in OEM manufacturing to China (Metso 2013)
Focus on growth part of industry
• Grow our business in China (paper machines), Asia and Latin America (pulp)
Focus on growth of non-bearing platforms
• Growth in services in NAM (largest P&P market in the world) and Europe
• Differentiate our Condition Based Maintenance and Asset Reliability Consulting
capabilities and expand our knowledge
• Growth in seals
Focus on bearings and units
• Increase and share knowledge across our application engineering network
• Differentiate the value of our bearing technology
* ‘RISI is the leading provider of information for the global pulp and paper industry’
© SKF Group
CMD 2014
© SKF Group
SKF Capital
Slide
17
Markets
10 September
Day
2014
Mining: Market development and strategic programs
Industry overview and trends
1.
2.
3.
4.
MMPC strategic programs
5.
© SKF Group
Mining markets showing economic weakness and cut backs in
spending (Mining Journal 2014)
Key OEMs see dramatic drop in order books (Mining Journal 2014)
Iron ore and copper prices remain low due to drop in China demand
and over capacity as new mines begin production
(Daily Telegraph 2014)
Companies with strong emerging market business will continue to
outperform (PwC 2014)
Trend for Remote Operations/Autonomous mining in production
(e.g. mining.com 2013)
Secure long term relationships with OEMs and End users
• Increase SKF sales in Corporate and Strategic Accounts
Solution provider to OEM and End user
• Focus and increase Service portfolio
Preferred Distributor partner
• Develop programs to support DD sales
Preferred knowledge influencer of engineering, procurement,
and construction management (EPCM) consultancies
• Increase SKF’s recognition as knowledge partner for EPCM
CMD 2014
Taking a full life cycle approach
OEM examples
Deliver SKF equipped solutions
Optimizing the
life cycle
Equip with SKF knowledge
© SKF Group
CMD 2014
End user examples
SKF Life Cycle Management example
from a leading company in the cement industry
 An end-user customer approached SKF
with a vibration problem in the foundations
of a horizontal grinding mill
 SKF proposed ODS (Operational Deflection
Shapes), Application Engineering and FEM analysis
 OEM of grinding mill got involved
-> SKF was hired by both to find a solution
 SKF detected the problem (flexing due to gear
wear and wrong bearing housings) and proposed
a solution with new bearings and housings
 OEM of grinding mill adopted the solution for their new designs
-> Business with OEM of grinding mill increased significantly
 SKF is now involved in baseline analysis for new equipment
at end-user customer
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CMD 2014
Delivering value consistently to customer’s asset life cycle
SKF Sales, Customer Service,
SKF Distributor
Customer
Documented Solutions Programme
Industries
Technology
Value calculation
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CMD 2014
SKF Solution Factory
Value delivered and verified to our customers
SKF Documented Solutions Program (DSP)
Total verified customer savings:
> SEK 27 billion
Verified savings in 2013:
> SEK 4 billion
Coming from > 25 industrial segments
Multiple languages
> 50 currencies can be converted
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CMD 2014
Voice of our customers
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Competition
Currencies
Emerging markets
Crisis countries
Excess capacity
Slow growth
Price pressure
…
A challenging business environment
© SKF Group
CMD 2014
Industrial Distribution
© SKF Group
CMD 2014
Footprint: SKF Industrial Distributors global network
Europe North
600 Distributors branches
North America
CEEMEA
2,500 Distributors branches
800 Distributors branches
Europe West
North Asia
900 Distributors branches
250 Distributors branches
LAM
S&SAP
350 Distributors branches
500 Distributors branches
~ 5,900 Distributors branches*
~ 320 Certified Network locations
© SKF Group
SKF
Capital
25
Markets
10
September
Day
2014 branches, not including CRE and IPS (sub-distributors)
* Numbers
are Slide
Industrial
Distributors
Voices of our top distributors – May 2014
“Key area of improvement is delivering good service levels, help us to reduce the 300
days of inventory” – LAM Distributor
“Logistics is the priority in next years” – EUROPEAN Distributor
”Logistics and stock are the priorities” – USA Distributor
“Speed to serve and offer solution to customer is the key ”– USA Distributor
“Relationship and stock on time are the two more important areas in Asia” SSEAP Distributor
“Customers need to be developed step by step and we must quantify the value what
we are doing for them to make it happen. All is about educate our people and mindset
change”- EUROPEAN Distributor
“Evolution towards more partnership relation has to be supported by education and
building strategic competences”- Chinese Distributor
“To cultivate customer is possible but it requires a lot of time and dedication. Magic is
in knowing what questions to ask and ask them right. It is about education” EUROPEAN Distributor
Supply Chain efficiency
Partnership / Relationship
Education
© SKF Group
CMD 2014
Industrial Distribution strategic areas
• 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 SKF Solution Factory
© SKF Group
CMD 2014
SKF Distributor College
Quick facts * :
Certificate number 230 000 was issued to
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Jennifer Caroline Reyes Rodríguez
Number of certificates 231,487
Number of users
18,643
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44 courses available
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21 languages
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Frequently new and updated
courses:
Released during 2014
• Inventory management
• Bearings for high temperature
applications
*Numbers from end of August
© SKF Group
CMD 2014
from SKF Authorized Distributor
RODAMIENTOS Y ACCESORIOS, S.A; Mexico
Course and date: Self-aligning ball bearings - 22 Aug. 2014
Improved service levels with Vendor Managed
Inventory (VMI)
Vendor Managed Inventory (VMI):
High service levels, faster delivery and higher quality of inventory management
for our distributors
Benefits for SKF:
• better visibility to inventory levels
• more effective forecasting and manufacturing
• more sales effectiveness
• Increased sales and improved customer loyalty for the distributors
To date SKF has been successful in implementing VMI with major distributors in
Northern and Eastern Europe. With VMI these distributors achieve a service level
to end-customers of 98%.
© SKF Group
CMD 2014
Service Technologies and Industrial Solutions as
business essentials
Global technical
support
Global field support
System and product development
SKF Solution Factory network
Condition Monitoring and
Maintenance products
© SKF Group
CMD 2014
Remote diagnostic services
with global databases