Leveraging Technology for Intelligent and Clean Growth
Accelerate technology development in high-growth segments to digitize the full value chain, optimize supply chains, and enhance portfolio management. Focus on growth areas like electric drives, cleantech, automation, and robotics across various industries to drive sustainable growth.
- Technology Growth
- Clean Solutions
- Digital Transformation
- Sustainable Development
- High-Growth Segments
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Intelligent and clean growth Accelerate technology development High-growth segments New technologies Digitalize our full value chain Regionalized and competitive supply chain Services & Aftermarket Portfolio management Operate more efficiently closer to customers Growth areas Growth enablers
Intelligent and clean growth Accelerate technology development High-growth segments New technologies Digitalize our full value chain Regionalized and competitive supply chain Services & Aftermarket Portfolio management Operate more efficiently closer to customers Growth areas Growth enablers
Targeting existing segments with high growth across geographies High-growth segments EXAMPLES WHY HOW 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. High-speed machinery By capitalizing on our leadership within ceramic bearings and established position as a preferred technology partner. Electric drives Areas with high growth, driven by increased investments in development of new technologies. 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. Cleantech 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. Automation & Robotics Continue to build on our deep knowledge, strong brand and ability to develop bespoke products. Growing markets with wide and demanding application needs. Agri, Food & Beverage
Leveraging technology to grow in emerging industries New technologies EXAMPLES WHY HOW 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. Connectivity 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. Ceramic bearings 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. Magnetic bearings 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. SKF RecondOil
~40% of sales with attractive profitability Services & Aftermarket STRENGTHS GROWTH POTENTIAL EXAMPLES Aftermarket Global reach and close customer relations Transactional service business Scale up data-driven services Services Over 17,000 distributors providing services Partnerships on data gathering Maintenance Recognized leader in application engineering and design Supporting customer s CO2 reduction ambitions Condition monitoring Remanufacturing Recurring revenue models, from entry-level to performance-based Industry leading in artificial intelligence and machine learning Engineering & design support Rotation as a service
Intelligent selection of businesses Portfolio management Stricter performance requirements on businesses Maintain Grow Earn your place in the Group: - profitability - growth potential - future proof - sustainability Trim Fix Independent Automotive creates strategic flexibility for the Group We will address selected underperforming businesses
Profitable growth in Automotive Portfolio management WHAT WHY HOW Strong sales growth Clear leader in hi-speed bearings for electric powertrains. Adding roller bearings to further increase content 1 Capture growth in electrical vehicles 2 Asia truck & bus markets are upgrading for longer service life, improved quality and performance Proven track-record in Europe, leading the trend in Asia Expand in commercial vehicles SKF is gaining share with improved organisational capabilities and profitability Good growth potential in EMEA and Americas as well as in Asian markets 3 Capture growth in vehicle aftermarket Market and technology shift to Electric Vehicles Refocus fragmented portfolio on attractive segments, products and customers Refocus portfolio to relevant segments 4 Autonomous driving brings new opportunities in innovation for an upgraded portfolio Currently leading position in suspension bearings opportunities to consolidate product portfolio in steering 5 Rebuild drive control portfolio
Intelligent and clean growth Accelerate technology development High-growth segments New technologies Digitalize our full value chain Regionalized and competitive supply chain Services & Aftermarket Portfolio management Operate more efficiently closer to customers Growth areas Growth enablers
Leveraging customer insights to fuel technology development Accelerate technology development New customers Supporting the growth agenda - High speed in electric applications - Cleantech and new energy - Services built-in SKF knowledge - Net zero enablers 25% of growth 10% of growth Existing products New products 15% of growth New manufacturing technologies 50% of growth Over time, increase R&D expenditures by 50% to support the growth agenda Existing customers
Leveraging customer insights to fuel technology development - examples Accelerate technology development High High- -speed bearings speed bearings Connected products Connected products Specifically engineered to meet the extreme needs of electric drives, centrifugal compressors and pumps Embedded sensors gather bearing and machine data during operation, enabling instant feedback and control Food Food- -line bearing units line bearing units Manufacturing Manufacturing Meeting hygiene, maintenance and performance needs in demanding environments New methods like laser cladding and induction heat treatment increase flexibility, reduce cost and increase customer performance
Drive growth and reduce working capital Digitalize our full value chain Design Significant progress has been made in digitalizing SKF s manufacturing operations. Customer Supply chain 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. Distribution Manufacturing Sales
Regionalized and competitive supply chain Closer, quicker and more competitive 2025 targets 60% 60% 95% 95% >85% >85% Americas 40% 60% EMEA 95% 95% Asia Pacific 60% > 85% Localization: 60% 95% > 85% > > investments for profitable growth > > localization rates 4 4- -5 5 closures per year 5 5 billion in annual savings by 2025
Organizational evolution Operate more efficiently closer to customers From centralization to decentralization Design Design Customer Supply chain Customer Supply chain Distribution Manufacturing Distribution Manufacturing Central Regional Sales Sales Business area
Customer driven business areas Operate more efficiently closer to customers AMERICAS EMEA LUBRI- CATION SEALS AERO AUTO- MOTIVE SKF MAG- NETICS MARINE RECOND- OIL CHINA & NEA INDIA & SEA 1 global automotive business 6 independent business areas 4 industrial regions Full end-to-end customer and financial accountability Lean central organization Central processes and structures in place to coordinate global accounts & processes Central transformation office to secure speed and execution
