SKF Automotive · PDF fileSKF Automotive Division Profitable growth ... 15 485 Cars Light Trucks Total NAFTA-2,3% 0,8% ... For timing belt replacement

SKF Automotive Division Profitable growth

Automotive Division - Capital Market Day 2002

Tom JohnstonePresident, SKF Automotive Division

External sales 2001

17%

19% 3%

61%Cars

Others

Trucks

VehicleAftermarket

13 438 MSEK

37%

3%

54%

6%

Europe

LA

NA

Asia

Per segment By region


Car and Light Truck Production

1,3%3,0%39 22014 78154 001

CarsLight TrucksTotal

TOTAL

10,3%-9,6%1 671

3632 034


S.America

9,6%1,0%2 525

3512 876


E.Europe

1,1%5,8%12 9013 901

16 802


Asia

-0,3%7,6%7 1568 329

15 485


NAFTA

0,8%-2,3%14 9671 838

16 804


W. Europe

Forecast2003/2002

Forecast2002/2001

Actual2001

(Vehiclesin ´000)

Source: DRI/WEFA, September 2002 Automotive Division - Capital Market Day 2002

Truck Production over 6t GVW

1,8%

-3,0%

23,4%

-9,5%

23,7%

1,2%

14,6%

4,4%

1,2%

Forecast2003/2002

12,1%1 655TOTAL

-14,6%60Brazil/Argentina

0,8%77E&C. Europe

46,7%453China

63,0%31Korea

11,5%111India

6,0%181Japan

11,1%383NAM

-7,3%358W. Europe

Forecast2002/2001

Actual2002

(Vehicles in ´000)

Source: LMC 2002 Q3Automotive Division - Capital Market Day 2002

Increased CUSTOMER FOCUS

Operational Improvements

Profitable Growth

Priorities


Operational Improvements

Improve Profit Margin- Pricing/Mix- Cost- Value Management

Better Use of Capital Employed- Lower Working Capital- Reduce Investments- Improve Flexibility


Strategic Direction

To position SKF as the preferred business partnerfor the automotive industry through:

Intensifying the development of added-value products and services.

Using the SKF Group expertise to take a leadingposition in new automotive technology

Developing partnerships with other leading component suppliers and with our distributors


Today's Topics

VSM Growth

New Car Business

Truck Business


Today's Topics

Vehicle Service Market (VSM) Growth

New Car Business

Truck Business


1995 1996 1997 1998 1999 2000 2001 2002F

Loose bearings Kits

VSM Europegrowth strategy


New Supplier Agreements with Key Distributor Groups


SKF Timing Belt KitsNorth America launch 2001

One box, one part numberFor timing belt replacementAll required tensioners and pulleys are includedComponents packed in durable plastic tray; with complete instructions

Sales 2000: 0Sales 2002: 40 MSEK


Vehicle Diagnostics

Integrated RepairInformation System


The Business is Changing

+ New Regulations+ Vehicle complexity & performance+ Higher customer demands+ Service trends

= Increased demands on service, information & training


With Integrated modules for:– Diagnostics– Training– Administration– Service Information

Hot Line support

PC & Palm

A Multi Brand Solution


Market Response

Automechanika - over 1.000 leads received

Test market UK –Launched 3rd October 2002 –1st Order received day one (5 Systems)


Today's Topics

VSM Growth

New Car Business

Truck Business


0

50

100

150

200

250

92 94 96 98 00 02EST

HBU3/3THBU2/2THBU1/1T

Hub Bearing Unit (HBU)sales development 1992 - 2002

1992 = Index 100


Light truck as % of North American Vehicle production

DaimlerChrysler 75% 75%Ford 64% 68%GM 57% 60%Honda 20% 37%Nissan 35% 50%Toyota 35% 47%

Data from CSM forecasting

2001 2006 Fcst


New Business Gained

Dakota Pickup

Durango Sport Utility


VSES Axle Assembly for Light Trucks

Unitized Tone Ring Assembly

Business Value 40 MSEK pa


New Powertrain product

Product DescriptionBearing Carier for light alloy andmagnesium gearbox

Customer benefits- Allows light weight gearbox design - More compact gearbox reducing axis distance- Improved gearbox rigidity- Longer bearing gearbox life- Easy assembly- Components number reduced

Customer- VW


New TRB business with VolvoPower Take Off Unit for 4WD Vehicles

VOLVO XC90


CARB® in Innovative Suspension

Product descriptionLower suspension unitincorporating CARB

Customer benefitsLight weightBetter performance using CARBfeatureImproved comfort and handling


GM's Hy-Wire car

Fitted with SKF Drive by Wire systemsAutomotive Division - Capital Market Day 2002

Today's Topics

VSM Growth

New Car Business

Truck Business


Truck Applications

Wheels ends and axels

Rear axels and propeller

shaftsGearboxes and drivelinesSteerings

Engines

Cabin-hinges


Trouble Free Operation- Maintenance Free -

Universal Joint BearingUnitized Wheel Ends(THU)


Unitized Wheel Ends

THU2

THU1

THU2FF

TMU ATMU


Customers

MAN front steer (F2000 and TGA)

Renault V.I. front steer (Magnum)

ArvinMeritor front steer (F-981) & trailer axle

Achsenfabrik Sauer trailer axle

Schmitz Cargobull Rotos trailer axle

DaimlerChrysler trailer axle

Trennkamp & Gehle trailer axle


Universal Joint Bearings

Standard Design• grease nipples• grease pipelines in the cross• maintenance intervalls

(regreasing)• heavy environmental pollution• rust due to heavy pressure

cleaning

4 UJB fitted to cross


Maintenance Free Concept

Special cup base design- high structural strength- cold drawn, case hardened - ground outer diameter and raceway- optimum load distribution

Special cup base design- high structural strength- cold drawn, case hardened - ground outer diameter and raceway- optimum load distribution

Sealing system- seals against contaminants and water- protects against rough and

heavy environment- sheet metal carrier

Sealing system- seals against contaminants and water- protects against rough and

heavy environment- sheet metal carrier

Polymer thrust washer- damps axial shock loads- waffle pattern with grease retention grooves

- ideal lubrication conditions

Polymer thrust washer- damps axial shock loads- waffle pattern with grease retention grooves

- ideal lubrication conditions

Logarithmic roller profile- optimum load distribution

over roller length- no unpermitted edge stresses

Logarithmic roller profile- optimum load distribution

over roller length- no unpermitted edge stresses


Universal Joint Bearings

Maintenance Free• no re-lubrication• grease remains clean• no inspection intervals• absolutely no environmental

pollution• reduces fleet cost significantly:

inspection maintenance every 50.000 km á 30 minutes á 60 €/h = 600 € + truck downtime

• field experience since 1993


in 2000:• increase flexibility• decrease downtimes• increase availability• don't increase assets

Formula 1 ResettingTRB

02468

1012141618

2 0 0 0 2 0 0 2

Frequency [#/year]

0

1

2

3

4

5

6

7

8

2 0 0 0 2 0 0 2

Resetting [h/reset]

9 0 %

9 1%

9 2 %

9 3 %

9 4 %

9 5 %

9 6 %

2 0 0 0 2 0 0 2

Availability [%]

mid 2002:• targets achieved• grinding machine

(TRB Grinding Machines)from 120-240 min/machineto 9-45 min/machine


Key message

Driving Operational Improvements- increasing margin- reducing capital employed

Growing business ahead of Market Development- customer focus- innovation

Moving up the Value Chain


Documents

SKF Automotive · PDF fileSKF Automotive Division Profitable growth ... 15 485 Cars Light Trucks Total NAFTA-2,3% 0,8% ... For timing belt replacement