7
Lubrication
Robert Law
Director
Business unit Lubrication
Timeline and acquisitions
SKF acquisitions
Willy Vogel AG
(Germany)
Safematic
(Finland)
Sommers
(Sweden)
2004
2005
Cirval
(Argentina)
ALS
(Canada)
2006
2007
Alemite
(USA)
Lincoln
Helios India
Lincoln acquisitions
Reelcraft
(USA)
© SKF Group
CMD 2014
Lincoln
(USA)
2008
2009
2010
Global leader in
the automated
lubrication systems
market
Competitive advantages – lubrication business
Experienced employees and partners
Global presence and local knowledge
Premium product brands
Broadest offering in the industry
© SKF Group
CMD 2014
Go to market structure
Automatic lubrication systems
• We go to market as SKF with the
two leading brands SKF and Lincoln
• Opens up the opportunity to reach
out with our full line offering to more
customers
• About 50% of sales via distributors/
system houses
• Distributors are very knowledgeable
and responsible for sales,
installation services and after market
• Reelcraft and Alemite own sales
channels
© SKF Group
CMD 2014
Customers
Distributors/
system houses
Local sales teams
One Portfolio
Partner testimonials
Our partners express great pride and benefits
working with SKF and having access to our
full-line lubrication solutions offering
Two leading brands, one global leader
Some testimonials from our partners …...
© SKF Group
CMD 2014
Two leading brands, one global leader.
© SKF Group
CMD 2014
Loyal customers and partners – our key for success
• Good net promoter score
– Communications – unified market communications,
external webinars, product launches
– Service – improving availability, speed of response
– Information – smart solutions for easy access information
• 8 major product launches in 2014
• 48 trade shows
• Training by product, solution & application
• SKF LubCAD
• Lubrication systems configurator
• Web shop facility
© SKF Group
CMD 2014
Services and asset life cycle offering
• Our automatic lubrication systems
are well prepared for integration with
the other platforms
• This enables other SKF units to
enhance their asset life cycle offering
and business – e.g. condition based
lubrication for renewable industry
• Together with our partners we have
a full line offering of services in:
– design, installation, commissioning,
monitoring, maintenance and repair
© SKF Group
CMD 2014
Global footprint
Muurame, FI
Enschede, NL
Corby, UK
Banbury,
UK
Shelby Township, US
St Cyr, FR
Hampton, US
Columbia City, US
Hockenheim, DE
St. Louis, US
Walldorf, DE
Johnson City, US
Fort Mill, US
Linköping, SE
Berlin, DE
Chodov, CZ
Cormano, IT
Changzhou, CN
Changshu, CN
Shanghai, CN
Bangalore, IN
Rosario, AR
Manufacturing sites
Product development sites
© SKF Group
CMD 2014
Supported by
many more sales offices
+
5,000 partners
covering the global market
Osaka, JP
Manufacturing efficiency and major projects
• Optimizing the global manufacturing
footprint and capacity by taking the best
from the two merged companies
• To further improve cost leadership
Major projects
• Relocation of sourcing and manufacturing
to best cost countries
• Investing in factory expansion Chodov CZ
• Investing in a new facility in India
• Relocation in France from Saumur to St Cyr
• Relocation of St Louis factory
© SKF Group
CMD 2014
Product portfolio and launches
Product
harmonisation
Over time the Lincoln and SKF products will
be harmonised to feature the “best of the best”
whilst investing to make the “best better”
8 major launches in 2014 – three examples
Next generation –
20v Li Ion battery
power grease gun
© SKF Group
CMD 2014
PPS-30 – New compact
pneumatic pump
TLMR – Automatic
lubricant dispenser
What automated lubrication does for our customers?
INCREASE
• Productivity
• Service intervals
• Safety
• Sustainability
REDUCE
• Energy consumption
• Operating expenses
• Downtime
• Lubricant consumption
• Waste
SKF is leading the technology shift from manual to
automatic lubrication and realising these business benefits
© SKF Group
CMD 2014
Optimal lubrication is the key to a centralized system
Click here to start the animation
© SKF Group
CMD 2014
Increasing adoption rate for automatic lubrication
 80% of lubrication points are still
manually lubricated
 The adoption rate is increasing to
capture the automatic lubrication
systems benefits
 Big opportunity for SKF
Manual
lubrication
Automatic lubrication
systems
Adoption rates key industries served
5-15%
© SKF Group
CMD 2014
1-10%
25-35%
5-50%
25-85%
80-95%
Environmental and business impact
• Automated lubrication uses 33% less grease than
manual lubrication
• Automated lubrication globally saves 200 million
kg of grease per annum  =300,000 tonnes CO2e
• SKF saves users 60,000 tonnes CO2e and
SEK 2,000 million in cash in reduced grease cost
per annum
This with only 20% of all lubrication points using
automated lubrication!
Imagine the value if a company could combine
their knowledge on bearings, seals,
mechatronics, service and lubrication, and
develop event-based automatic lubrication
systems?
© SKF Group
CMD 2014
Environmental and business impact
• Automated lubrication uses 33% less grease than
manual lubrication
• Automated lubrication globally saves 200 million
kg of grease per annum  =300,000 tonnes CO2e
• SKF saves users 60,000 tonnes CO2e and
SEK 2,000 million in cash in reduced grease cost
per annum
This with only 20% of all lubrication points using
automated lubrication!
© SKF Group
CMD 2014
Lubrication – key business message
• Positive business development
• Loyal customers and partners
• Global coverage
• Full line offering of products, services and solutions
• Huge market potential to grow
© SKF Group
CMD 2014