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October 30, 2007 SKF Group Slide 0

India & SKF

Power of Knowledge Engineering

Shishir Joshipura Managing Director, SKF India AGM, Mumbai

Dun & Bradstreet Rolta award Top company in Bearing Sector- 2009

Economy
15% 10% 5% 0% -5% Agriculture Indus try Se rvic es GDP

G DP ( 2009-10)

Q1 2.4% 5.0% 7.8% 6.1%

Q2 0.9% 8.3% 9.3% 7.9%

Q3 -2.8% 11.6% 6.3% 6.0%

YTD -0.2% 8.3% 7.8% 6.7%

GDP Contribution 2009-10, (YTD Q3) Industry 29%

10% 8% 6% 4% 2% 0% -2% Jan 2009 5.0% Fe b 3.5% Mar 1.2% Apr 1.3% 9.6% May

Inflation (WPI)
2009 (Jan-Apr): 2.7 % 2010 (Jan-Apr): 9.7 %

Agriculture 15%

Services 56%

Source : CSO / CMIE

Jun

Jul

Aug

Se p

Oc t 1.5%

Nov 5.6%

De c 8.1%

1.4% -1.0% -0.5% -0.2% 0.5%

2010 9.4% 10.1% 9.9%


October 30, 2007 SKF Group Slide 2

Industry
IIP
IIP- General
20% 15% 10% 5% 0%
ar -0 9 n09 g09 De c09 10 O ct -0 9 Fe b-

Growth of six Infrastructure Industries

13.5%

10% 8% 6% 4% 2% 0% Mar-09

Mar10 : 7.2 % Jan-Mar10 : 7.2 %

7.2%

Ju

May-09

Jul-09

Sep-09

Nov-09

Jan-10

Mar-10

IIP- Manufact uring


20% 15% 10% 5% 0%
Ju n09 ar -0 9 ug -0 O ct -0 Fe b-

Au

14.3%

IIP- Sector wise Growth rates IIP Mining Manufacturing Electricity 2009 0.3% 1.9% -0.3% 6.3%

Mar 2010 13.5% 11 % 14.3% 7.7%

YTD (Jan-Mar) 2009 0.5% 0.9% 0.3% 3% 2010 15.1% 12.4% 16.1% 6.7%

-5%

ec -0 9

10

October 30, 2007 SKF Group Slide 3

Source : CSO

India - GDP
9.3% 9.9% 12% 9.0% 8.5% 8.5%
7.6 % CAGR

7.9 % CAGR

7.5%

4.4%

5.8%

8%

4%

3.8%

6.7%

7.2%

8.3%

0%
20 00 -0 20 1 01 -0 20 2 02 -0 20 3 03 -0 20 4 04 -0 20 5 05 -0 20 6 06 -0 7 20 07 20 8 08 -0 20 9 09 -1 20 0 10 -1 20 11 1 -2 01 2

CAGR (2000-01 to 2008-09) Agriculture Industry Services


Agriculture Industry Services

CAGR (2008-09 to 2011-12) 2.2 % 7.2 % 9.7 %

3% 7.5 % 9.3 %

300 250 200 150 100 Trillion Rs 50 0


-0 1 -0 2 20 02 -0 3 20 03 -0 4 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 20 8 08 -0 9 20 09 -1 20 0 10 -2 01 20 1 11 -2 01 2 20 01

Source: HSBC India Forecast 2010 (15th Jan 2010)

20 00

October 30, 2007 SKF Group Slide 4

SKF India Annual Sales


Total Sales Development (MINR)
18000 15000 12000 MINR 9000 6000 3000 0 2004 2005 2006 Year 2007 2008 2009

15683 13425 7814 5813

16202

15709

October 30, 2007 SKF Group Slide 5

SKF India Results 2009 vs 2008

MINR

2009 15709 1475 9.4% 1431 943 17.9

2008 16202 1790 11.0% 1944 1277 24.2

Net sales Operating profit before exceptional items Operating margin before exceptional items Profit before taxes Net profit Basic earnings per share, Rs

October 30, 2007 SKF Group Slide 6

First Quarter 2010 - MINR

October 30, 2007 SKF Group Slide 7

Key Figures
Return on Equity (Annualised)
23
25 20 35 30

EPS (Annualised)
33.1 24.2

19.8

13.2
15

25 20 15

17.9

10 5

10 5 0 2008 2009 Q1 2010

2008

2009

Q1 2010

EBITDA /Sales
13.9 12.8
14 12 10 8 6 4 2 0 35 30 25 20 15 10 5 2008 2009 Q1 2010 0

Return on Capital Employed (Annualised)


29.9 33.7

10.2

19.2

2008

2009

Q1 2010

October 30, 2007 SKF Group Slide 8

SKF India Manufacturing Footprint


Pune
Uttarkhand DGBB Plant

TRB, DGBB, HBU, Textile Components, MSBU New HBU1T channel Spindle Service Center Solution Factory Small DGBBs VAS Manufacturing Application Development Center Seals GTCI

Bangalore

Ahmedabad LSB Plant

PUNE DGBB, TRB, HUB, CRB, MSBU

Haridwar
- Small DGBBs (Inaugurated on 7th April 2010)
BLORE (2) DGBB, Seals

Ahmedabad
- Large Size Bearings (Inaugurated on 8th April
2010)

- Medium CRB
Major industrial clusters
October 30, 2007 SKF Group Slide 9

SKF Platforms

October 30, 2007 SKF Group Slide 10

Solution Factory - Pune

Inaugurated on : 3rd November Services: bearing remanufacturing, spindle Industries: Heavy Industries

services. customized product services & sealing solutions, remote diagnostics, Lubrication systems

October 30, 2007 SKF Group Slide 11

Global Testing Center - Bengaluru

Inaugurated on : 4th November Services: Testing new applications being


developed for customers Sealing Solutions

Industries: Two Wheeler, Automotive and

October 30, 2007 SKF Group Slide 12

Haridwar Plant Inauguration

Inaugurated on : 7th April Product line: Deep Groove Ball Bearings Industries: Two Wheeler & Automotive After
Market

Investment : INR 1500 Million (SEK 250 m) Employment Opportunity : Around 200 people

October 30, 2007 SKF Group Slide 13

LSB Factory - Ahmedabad

Inaugurated on : 8th April Product line: ID Large Size Bearings Industries: Railways, Wind and Heavy industries Investment : INR 2700 Million (SEK 450 m) Employment Opportunity: Around 300 people (full capacity).

October 30, 2007 SKF Group Slide 14

Automobile Sales Commercial Vehicles


CV Domestic Sales
80 60 40 20 0

Domestic Sales growth Company Tata Ashok leyland


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jan-Apr10 63.2 % 177.9 % 87 % 123.3 %

M&M Eicher

2009 23,154 31011 41,797 29842 30800 36193 37624 40624 45451 42562 40,847 48,614 2010 53,447 58024 67,362 49086

CV Domestic Sales (Jan- Apr 2010)


T ata Mot ors 58% M&M 17% Ashok Leyland 13% Others 7% Eicher 5%

October 30, 2007 SKF Group Slide 15

Source : SIAM

Automobile Sales Passenger Cars, UVs & MUVs


PV Domestic Sales
200 150 100 Thousand Nos 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
san Thou d No

Domestic Sales growth Company Maruti Tata Hyundai M&M Jan-Apr10 17.8% 41.5 % 35.2 % 8.7 %

2009 137380 145,166 165158 136026 140823 140243 147642 152100 167524 168043 166653 149097 2010 187605 194,548 199109 182181 PV Mkt Share (Jan- Apr, 2010) Toyota 3% Ford 3% Honda Siel Others 4% 3%

Hyundai Motor 16% Tata Motors 16% Maruti Suzuki 42%

M&M 7%

General Motors 6%

October 30, 2007 SKF Group Slide 16

Source : SIAM

Automobile Sales 2 Wheelers


Two Wheeler Domest ic Sales
900

Two Wheeler Domest ic Sales (Jan- A pr 2010) T VS 14% Honda 14% Ot hers 2%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

600

Suzuki 2%

Yamaha 2%

300

2009 581729 630838 654010 700987 727937 706937 719668 776777 838150 750229 790613 767796 2010 834383 837653 920133 855670

Bajaj Aut o 21%

Hero Honda 45%

Domestic Sales growth Company Hero Honda Bajaj TVS Honda Mcy. Jan-Apr10 13.4 % 106.2 % 27.4 % 38.8 %

October 30, 2007 SKF Group Slide 17

Source : SIAM

Core Industries
Core Infrastructure Industries
Electricity Generation
70 Thousand Gwh 65 60 55
9 0 l-0 9 9 9 ar -0 n10 9 No v0 Se p0 ar -1 -0 ay Ju
h
Mar10 : 7.8 % Jan-Mar10 : 7.3 %

Coal
60 Million Tonnes 40 20
rMa 09 M 9 -0 ay Ju l-0 9 9 -0 ep S

Mar10: 7.8 % Jan- Mar10 : 6.9%

Finished Carbon Steel


52 Lakh tonnes 48 44 40
Mar 10 : 9.2 % Jan- Mar10 : 8.5 %

Ju l-0 9

rMa

Ja

Crude Petroleum
35 Lakh Tonnes 30 25 20
l-0 9 ay -0 9 Se p09 Ja n10 ar -1 0 v09 Ju No
Mar10 : 3.5 % Jan- Mar10 : 5.7 %

Petroleum Refinery Products


150 140 Lakh Tonnes 130 120 110 100
Mar 10: -0.4 % Jan- Mar10 : 1.4%

Cement
200 180 Lakh Tonnes 160 140 120
Mar10 : 7.8 % Jan- Mar10 : 9.3 %

No v09

Se p09

Ja n10

October 30, 2007 SKF Group Slide 18

Source : CSO

9 9 -0 r-0 ay Ma M

0 9 10 09 09 l-0 r-1 vnpJu Ja Se No Ma

ar -0 9

ar -0 9

Ju l-0 9

ay -0 9

ar -1 0

M ar -1 0

M ar -0 9

No v09

Se p09

Ja n10

ay -0 9

Gw sand Thou

9 -0 ov N

0 -1 an J

10

SKF Offers for the India market


Main shaft housings, local production Main shaft bearings, import a local production

WindCon at test phase with some turbine manuf.

Pitch and Yaw, local production planned

Generators: MDGBB local Insocoat and XL Hybrids import

Gearbox bearings, import a local production

Lubrication systems, local production

Seals: Activity started, mapping done. Seals from Europe

Other opportuntites: Grease, Hydraulic pitch plain brgs... etc. Imported.

October 30, 2007 SKF Group Slide 19

India Wind development, MW


7000 6000

2500 2200

5000 4000 3000 2000 1000 0 FY 08 FY 09 FY 10 FY 11 FY 12

2000 1719 2052 1201 1103 1542 1258 2035 2377 1301 3000 3700 4100

1611

FY 13

FY 14

FY 15

Source : SKF Estimates based on moderate growth for Suzlon and conservative scenario projections from Wind manufacturers

India Installations

Exports
Note : FY 09 means a period from Apr 08 Mar 09

October 30, 2007 SKF Group Slide 20

SKF 2009 Business Snapshot


Trident Group Integrated Maintenance Service Contract with bearing supply & training Century Pulp & Paper Online Condition Monitoring system Sealed contract for the supply of main shaft bearings with leading energy infrastructure companies Established Oil Analysis Lab at Bharti Vidyapeeth College of Engineering First order for seals in caster segment along with ECONOMOS New Castor line-opportunity for seals Power Generation Supply & Commission of Online CoMo System for the entire BOP of two grass root NTPC power projects Mechatronic solution : Hero Honda, Delhi Steering column bearing : Honda motorcycles and scooters, India and Thailand

One Way Clutch for 2 Wheelers: TVS Motors Hosur and Bajaj, Pune

Joint development of Energy Efficient motor: Texmo Industries, Coimbatore

Awarded by SKF AP with Best Overall Score for CMP Step up 2009

October 30, 2007 SKF Group Slide 21

New Launches
FORD FIGO
Versions Non ABS ABS Front BAH0109B BAH-0106 Rear BT1B329013 BTH-1206 AB BB1-3374 Rear Axle M&M Xylo BT1-0702 Front wheel Inner - Eicher Canter 50KW 6313-2RS1/C3HTVT193 : Rear Wheel - Tafe tractor M241 / Eagle

TATA NANO
Belt Tensioner Unit
ARB-1323

Center support kits : 2516/2518 Models QA 81002 KQ 71003 UJ Kit : 2516-3516 - RSB Model VKUA 99502

New Crossover Vehicle HBU1-T (Front & Rear) (BTH 1024)


October 30, 2007 SKF Group Slide 22

TATA ARIA

VKM 17801( Indica Belt Tensioner )

Maruti 800 Belt tensioner unit

Indica Belt tensioner unit

SKF India Community Projects

We continue to run CSR projects


SKF Sports Academy Cricket, Football &
Hockey

Nachiket Balgram Udyogdham Rainwater harvesting

October 30, 2007 SKF Group Slide 23

SKF Sports Academy


100 boys and girls - joyful, energetic and full of dreams- participate in
the coaching sessions held regularly at our Pune plant.

The sports academy provides a platform that allows the children to


direct their energies into a constructive and productive activity

SKF Sports Academy Girls Hockey Team has won the three

tournaments in Pune in 2009-10. Girls have selected for state teams to represent Pune district in various tournament

One of the football player Vikas Zanze was selected for National School

football championships (National Junior Championships). This tournament was held in Sagar (Madhya Pradesh) in November 2009. Vikas has cleared two stages of selection where competition was very tough. He was captain of the SKF Team when our boys participated in Gothia Cup, July 2007 - Gothenburg Sweden. He scored 3 goals in total 5 matches played

October 30, 2007 SKF Group Slide 24

October 30, 2007 SKF Group Slide 25