SKF in brief 2009
Vision Mission Drivers Values
To equip the world with To strengthen SKF’s global leadership • Profitability • Empowerment
SKF knowledge and sustain profitable growth by being • Quality • High ethics
the preferred company: • Innovation • Openness
• for our customers, distributors • Speed • Teamwork
and suppliers • Sustainability
• for our employees
• for our shareholders
This is SKF
SKF Group is the leading global supplier of Three divisions, 40 segments Research and development
products, solutions and services within rolling SKF does business mainly through three divisions: Technical development, quality and marketing
bearings, seals, mechatronics, services and Industrial Division and Service Division, servicing have been in focus at SKF since the very start.
lubrication systems. Services include technical industrial original equipment manufacturers The Group’s efforts in research and development
support, maintenance services, condition (OEMs) and aftermarket customers respectively, have resulted in numerous innovations, forming
monitoring and training. and Automotive Division, servicing automotive bases for new standards, products and solutions
OEMs and aftermarket customers. SKF operates in the bearing world. In 2009, the number of
The SKF Group in around 40 customer segments, whereof first filings of patent applications was 218.
SKF was founded in 1907 and grew at a rapid examples include cars and light trucks, wind
rate to become a global company. As early as energy, railway, machine tool, medical, food SKF Care
1920, the company was well established in and beverage and paper industries. SKF defines sustainability as SKF Care, compris-
Europe, North and Latin America, Asia and ing Business Care, Environmental Care, Employee
Africa. Today, SKF is represented in more than Certification Care and Community Care. Within each of these
130 countries. The company has more than The Group has global certification to IS0 14001 four cornerstones, key focus areas and targets
100 manufacturing sites and also sales com- (environmental management systems) and are defined to drive continuous performance
panies supported by about 15,000 distributor OHSAS 18001 (health and safety) standards. Its improvement.
locations. SKF also has a widely used e-business operations are also certified to either ISO 9001
marketplace and an efficient global distribution or applicable customer industry standards, e.g.
system. ISO/TS 16949 (automotive), AS9100 (aviation)
or IRIS (railway) for quality management systems.
Geographic distributions 2009 of net sales, average number
of employees and property, plant and equipment (per cent)
Average number of employees
Property, plant and equipment 51
23 24 21
10 8 8 10 8
6 6 5 3 5 5 3 1 0
North America Latin America Western Europe Sweden Eastern Europe Middle East Asia / Pacific
Net sales, SEKm 56,227 63,361
Operating profit, SEKm 3,203 7,710
Profit before taxes, SEKm 2,297 6,868
Basic earnings per share, SEK 3.61 10.14
Diluted earnings per share, SEK 3.61 10.13
Dividend per share, SEK 3.50 1) 3.50
Cash flow after operating investments before financial items, SEKm 5,752 65
Return on capital employed, % 2) 9.1 24.0
Equity/assets ratio, % 2) 35.8 35.1
Additions to tangible assets, SEKm 1,975 2,531
Registered number of employees, 31 December 41,172 44,799
Number of shares 31 December 2009: 455,351,068, of which 45,421,004 A shares and 409,930,064 B shares.
Dividend according to the Board’s proposed distribution of surplus.
2008 has been restated for change in accounting principle IAS 19 ”Employee benefits”.
Net sales by customer
segment Industrial distribution 22%
Cars and light
Vehicle service market 12% trucks 14%
machinery 5% Aerospace 7%
Heavy industry 8% Trucks 3%
General industry 11% Two-wheelers and
SKF’s business is mainly divided into three divisions, each focusing on specific customer groups worldwide.
The divisions are interdependent and provide each other with products, services and know-how, so that
each division can fully serve its final customers.
Industrial Division Net sales by customer segment
The Industrial Division serves industrial Original Net sales by customer segment 2009 2008
Equipment Manufacturer (OEM) customers in Net sales, SEKm 19,301 22,862
some 30 global industry customer segments
Special industrial machinery 11% Net sales
with a wide range of energy-efficient offerings. Energy 16% incl. intra-Group sales, SEKm 33,730
These solutions and know-how are also based General industry 18%
on the manufacturing of a wide range of bearings Operating profit, SEKm 1,551 4,043
– such as spherical and cylindrical roller bearings, Operating margin* 5.5% 12.0%
angular contact ball bearings, medium deep Railway 11% Assets and liabilities, net, SEKm 15,825 18,098
groove ball bearings and super-precision Heavy industrial machinery 10%
Aerospace 20% Registered number of employees 17,604 19,166
bearings – as well as lubrication systems, linear Other 7%
motion products, magnetic bearings, by-wire * Operating margin is calculated on sales incl. intra-Group sales.
systems and couplings.
Service Division Net sales by customer segment
The Service Division serves the global industrial Net sales by customer segment 2009 2008
aftermarket providing products and knowledge- Net sales, SEKm 19,832 21,907
based services to increase customers’ plant
asset efficiency. Solutions are based on SKF’s Service and service-
related products 17% incl. intra-Group sales, SEKm 20,190 22,318
knowledge of bearings, seals, lubrication systems,
mechatronics and services, and customers are Operating profit, SEKm 2,610 3,326
served by SKF and its network of over 7,000 Bearings and units, Operating margin* 12.9% 14.9%
authorized distributors. The division runs three products, seals, Assets and liabilities, net, SEKm 4,834 5,668
Condition Monitoring Centres, who design and lubrication systems,
linear motion and Registered number of employees 5,726 6,018
produce world-leading hardware and software.
actuation systems 83%
Service Division is also responsible for all SKF’s * Operating margin is calculated on sales incl. intra-Group sales.
sales in certain markets. The expanding network
of SKF Solution Factories will be the future infra-
structure for delivering complete, integrated
solutions incorporating all SKF’s technology
Automotive Division Net sales by customer segment
The Automotive Division serves manufacturers Net sales by customer segment 2009 2008
of cars, light trucks, heavy trucks, buses, two- Net sales, SEKm 16,051 17,886
wheelers and the vehicle service market,
Other 9% Net sales
supporting them in bringing innovative and incl. intra-Group sales, SEKm 19,279 21,850
sustainable solutions to global markets. In
addition, the division provides energy-saving Operating profit, SEKm -809 546
solutions for home appliances, power tools and Vehicle service market 33%
Operating margin* -4.2% 2.5%
electric motors. Within the Automotive Division, Assets and liabilities, net, SEKm 8,122 10,070
SKF develops and manufactures bearings, seals
Registered number of employees 13,746 15,256
and related products and services. Products Trucks 9%
include wheel hub bearing units, tapered roller * Operating margin is calculated on sales incl. intra-Group sales.
bearings, small deep groove ball bearings, seals,
and automotive specialty products for engine,
steering and driveline applications. For the
vehicle service market, the division provides
complete repair kits, including a range of drive
shafts and constant velocity joints.
Sustainability is one of SKF’s key business drivers together with Profitability, Quality, Innovation Business Care Employee Care
and Speed. SKF’s approach to sustaining growth while meeting environmental and social challenges
is to work determinedly to integrate the long-term sustainable development approach into its
BeyondZero SKF Care
business practices, processes as well as product and solution offerings to the market and industry.
Sustainability at SKF centres on the SKF Care approach to business, the environment, employees
and the community. Environmental Community
Business Care • As a result of SKF’s drive in reducing energy in 2000. Apart from that, health and fitness,
• SKF endorses the Global Compact Ten Principles. intensity at manufacturing operations and the HIV/Aids programmes, skills and competence
The SKF Code of Conduct is applicable to all carbon intensity of the energy used, an absolute training continued to be a focus area under
employees worldwide and compliance audit is reduction of Scope 1 and 2 carbon dioxide Employee Care.
carried out biennially at all units. emissions (according to the GHG Protocol) of • SKF employees provide their feedback on SKF’s
• The SKF Code of Conduct for Suppliers and 90,000 tonnes was achieved. This is equivalent performance in relation to company values
Sub-Contractors as well as the SKF Code of to a 18% reduction compared to the 2008 and key focus areas annually through the
Conduct for Authorized Distributors have been total, surpassing the Group’s target by some global Working Climate Analysis. The analysis
released with the aim to enforce an ethical 13 percentage points. also measures the working climate in different
demand chain. • A new target for solvent reduction was defined, departments and individual teams in terms of
• In continuing its launch of new bearing famlies to achieve an absolute 50% reduction by 2012, trust, co-operation, personal development and
offering energy-efficient solutions, SKF released compared to 2007. A total of 25% reduction continuous improvement.
the SKF Energy Efficient (E2) spherical and was achieved in 2009.
cylindrical roller bearings. The SKF E2 bearing • SKF also aims for a minimum 80% recycling Community Care
family outperforms standard ISO products, rate for grinding swarf by 2012. The 2009 • SKF encourages its local management to be
providing a minimum 30% energy saving for recycling percentage of grinding swarf Group- actively involved in communities not only by
customers, and is intended for a wide range of wide was at 70%. providing financial means but also commitment
applications, such as industrial and wind through viable voluntary work and sports activ-
energy transmissions. Employee Care ities, education, training, and helping under-
• 120 out of 211 SKF units worldwide achieved privileged society. SKF has more than 200
Environmental Care zero recordable accidents for four quarters or Community Care activities in forty countries
• The SKF Group-wide ISO 14001 Environmental more in 2009 and the number of recordable around the world. Please visit www.skf.com
Management certificate comprised 97 sites in accidents has fallen by 89% per working hour for more information.
28 countries at the end of 2009. since the Zero Accidents target was established
Management Board of Directors
Tom Johnstone* President and Chief Executive Officer Elected by the Annual General Meeting
Tore Bertilsson* Executive Vice President and Leif Östling, Chairman
Chief Financial Officer Tom Johnstone, President and CEO
Henrik Lange* President, Industrial Division Ulla Litzén
Vartan Vartanian* President, Service Division Winnie Kin Wah Fok
Tryggve Sthen* President, Automotive Division Hans-Olov Olsson
Alan Begg Senior Vice President, Group Technology Lena Treschow Torell
Development and Quality Peter Grafoner
Carina Bergfelt General Counsel Lars Wedenborn
Giuseppe Donato Senior Vice President and Advisor Joe Loughrey
Eva Hansdotter Senior Vice President, Group Human
Resources and Sustainability Employee representatives
Magnus Johansson Senior Vice President, Group Business Kennet Carlsson
Development and Government Relations Lennart Larsson
Phil Knights Senior Vice President, Global Relations Jeanette Stenborg
Rakesh Makhija President, Asia Marie Petersson
Manfred Neubert President, SKF GmbH
Bo-Inge Stensson Senior Vice President, Group Demand
Chain and IT
Ingalill Östman Senior Vice President, Group
* member of the Group Executive Committee
The following topics related to the SKF Annual Report 2009 including Sustainability Report
are to be found at www.skf.com, choose Investors and Reports.
• Articles of Association • Environmental performance data
• SKF Code of Conduct • Zero Accidents awards
• The SKF Environmental, Health and Safety (EHS) Policy • Productions sites as of 31 December 2009
• Carbon dioxide emission data • The compliance table to GRI G3 Guidelines (GRI Index Table).