Презентация на тему «Fast growing markets Special focus Asia»

Fast growing markets / Special focus Asia

Market update Key market drivers Manufacturing footprint Engineering footprint Successful business

Ulrich Selig Director, Automotive Asia

Passenger car production - Asia

Asia ~ 50% of global car production Out of top 15, six are Japanese manufacturers Foreign JVs market leadership in China

Source: IHS August 2014

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Heavy and medium truck production - Asia

Asia ~ 60% of global truck production Top 5 heavy truck manufacturers come from China

Source: LMC Report Q2 2014

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Key drivers to impact the Asian automotive market

Urbanization Disposable income growth Infrastructure development Rapid growth in small cars Electric vehicles Total cost of ownership

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Manufacturing and engineering footprint - Asia

New factories established ACTII factory, Shanghai, China - production started 2014 Jinan factory, China - production started 2012 Mysore factory, India - production started 2012 SKF Global Technical Centres expanding 13 production sites

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Global Technical Centres in Asia

Automotive Testing Centre Japan, Chino

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Product engineering centre - Asia

Meet local customer specific challenges Quicker answers Specialized and dedicated engineering teams Global product development and design process to ensure worldwide quality standards

Truck

Global Technical Centre India

Global Technical Centre China

Two wheelers

Light vehicles

Trucks

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Key automotive customers in Asia

Passenger cars

Commercial vehicles

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Customer technical days

2013 18 OEM customer days 25 VSM distributor days 50 locations 4,000 visitors

2014 - YTD 4 OEM customer days 21 VSM distributor days 10 Truck Fleet customer days

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Great Wall - China

Strategic partnership agreement Solutions Wheel hub bearing unit (HBU) Transmission bearing Engine and driveshaft seals Great Wall Leading local car brand in China Strong growth plans Sales target 2015:

“Focus Dedication Specialization”

‘000 units

Source: Great Wall

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Great Wall

To grow our business in China and globally we need high quality suppliers with advanced engineering capabilities, close to us locally and a solid footprint globally. Great Wall wants SKF, as our strategic partner, to support us to reach global fame with the aim of building the best Chinese vehicles.

Geely - China

Solutions Transmission bearings (deep groove ball bearing, bearing retainer) Transmission seal (low friction bonded piston seal) Engine seal Geely Mission: Build the safest, most environmentally-friendly and most energy-efficient cars, and bring Geely cars to the world! In 2013,GEELY Holding Group revenue achieved 24.55 Billion US dollars, listed as the 477th company of world fortune 500

“Happy life, Geely drive.”

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Dongfeng Commercial Vehicle - China

Solutions Engine idler bearing Tapered roller bearing for transmission Maintenance-free universal joint bearing and hanger bearing for propeller shaft Tapered roller bearing for axle Dongfeng Leading heavy and medium duty trucks manufacturer in China Sold over 172,000 heavy and medium duty trucks in year 2013 A strategic alliance established with AB Volvo to build Dongfeng into a global brand

“Chinese Dongfeng Global Dongfeng”

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Dongfeng Commercial Vehicle Mr

Huang Gang, General Manager

Competence, technology and quality products Deepen and widen cooperation Support to improve trucks for global customers

Mazda - Japan

Solutions Transmission seal (low friction bonded piston seal) Robust MacPherson supspension bearing unit Mazda Sold 1.3M vehicles worldwide in 2013 Over 80% sold outside Japan New plant in Mexico for Mazda 2 and Mazda 3 started operation in 2014 Forecast 1.5M vehicles worldwide in 2015

”Zoom Zoom”

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Isuzu – Japan

Solution Tapered roller bearing Isuzu Global truck manufacturer Aims to be a leader in transportation, commercial vehicles and diesel engines, supporting customers and respecting the environment More than 70% of Isuzu turnover comes from overseas countries

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Hyundai/Kia - Korea

Solutions Wheel hub bearing unit Robust MacPherson suspension bearing unit Hyundai/Kia Overseas production expected to grow slightly to exceed domestic Hyundai-Kia 5th largest automotive OEM group Global footprint:

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Hyundai Motors Mr

Byeong-Jun, Kim, Purchasing Director

“ Working with SKF, we know we get the advanced and highest performing solutions we need for our vehicles to reach the world best level of the cars. Hyundai & Kia have grown tremendously over the last years globally, and we recognize that SKF’s global engineering and manufacturing footprint are a highly valuable support to us in our continued growth. We are pleased to work with SKF as we also have their timely and skilled support close to us in Korea and we look forward to continued growth with SKF. “

Honda - Indonesia

Solution Wheel hub bearing unit (HBU) Honda Leading car manufacturer in Indonesia Opening for further HBU business also with other car manufacturer Indonesia Fast growth of small cars due to economical development transition from TW Local Indonesia manufactured parts will enable customer to meet government requirement for incentive scheme

“The Power of Dreams”

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Key message for Automotive Asia

Increasing engineering capacity close to the customer Utilizing manufacturing capacity including new factory to grow with our customers Signing strategic partnership agreements strengthens growth for future market share Continue building strong relationship with customers; recognition with quality and business awards

Cost reductions

SKF Automotive strategy

Cost and capital efficiency

Product-ivity

Robust supplier base

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