- Investing in industries and products with high potential, where
SKF can add significant customer value - Establishing a decentralized operating model with full end-to-end customer and financial accountability
- Enhancing strategic flexibility by creating an autonomous Automotive business and refocusing it on areas where
SKF has a competitive edge - Increase pace and impact of new technology development in prioritized industries
- Accelerating digitalization and regionalization of the value chain
"
Key megatrends and increased investments in sustainability, digitalization, regionalization and electrification will also provide profitable growth opportunities for
All in all,
Successful execution of our strategy will result in a different
- Grow faster and double the business, at improved margins
- Be more focused and efficient
- Be the technical partner of choice among our customers
- Lead the development of sustainable solutions
We have defined a strategic framework based on two concepts: intelligent and clean. Intelligent means providing connected and tailored offerings for our customers, as well as using technology to make our operations more efficient. Clean reflects our ability to enable a more sustainable industry, whilst running our own business in a transparent and responsible manner.
These concepts will guide us as we embark on an exciting journey to become a more focused, innovative and profitable industrial player.
We have ambitious plans for the future. With that said, the Group launched updated financial targets only a year ago and we want to deliver on existing commitments before altering them."
The details of
Securing intelligent and clean growth
We will accelerate profitable growth, with emphasis on:
- Targeting industries with high growth potential, where
SKF has a strong market position and competitive edge, e.g.: high-speed machinery, electric drives, agriculture, wind, railway, food & beverage and robotics & automation. -
Re-positioning the Automotive business to profitable and growing segments where
SKF has the lead, including electric vehicles, commercial vehicles and aftermarket parts. -
Developing offers for emerging industries such as hydrogen processing and carbon capture, where
SKF is already well positioned through existing technologies such as magnetic bearings. - Strengthening the foundation for recurring revenues by simplifying our service offering, addressing a wider market. New technology and partnerships will provide scale and easy access to our data analysis and machine performance competence.
Being selective in our investments also implies that we will deal with the parts of our business that are not generating sufficient returns. Here, we will either improve the performance or trim them from the portfolio.
To deliver on our ambitious growth agenda, we have identified four main enablers:
1. Scaling the pace and impact of innovation and technology development
Focus on developing technologies and solutions that help our customers improve their operations and reduce emissions. We will use insights from connected products to speed up development of new customer offerings and solutions. Over time, we plan to increase R&D expenditure by approximately 50%, helping us capture more growth opportunities.
2. Digitalizing the full value chain
Significant progress has been made in digitalizing
3. Continued investment in automation and regionalization
We will continue to increase our investments in property, plant and equipment, supporting our growth ambitions. Through these investments, regionalization in
The increased investments will be funded by actions to improve our net working capital and continued cost reduction. These efforts will be supported by a new operating structure and a more regionalized value chain.
4. A decentralized organizational structure with clear accountabilities
- Four industrial regions:
Americas , EMEA,India &Southeast Asia andChina &Northeast Asia , further enhancing the ability of our largest and most profitable businesses to serve customers with increased speed and responsiveness. - One global automotive business: Creating the accountability and transparency needed to improve profitability and re-focus the portfolio. The increased autonomy will also, over time, provide enhanced strategic flexibility.
- Six independent and emerging businesses: Seals, Lubrication, Aerospace, Marine, Magnetic Bearings, RecondOil, creating the focus needed for these to continue to develop profitably and seek growth opportunities also beyond the rotating shaft.
In addition, a lean central function, providing global support.
The new organizational structure is effective from today, with Group Management consisting of the following individuals:
Member | Responsibility |
President and CEO | |
EMEA | |
Automotive | |
Thomas Fröst | Independent & Emerging Businesses |
Operations and Digital Transformation | |
Finance | |
Legal & Compliance | |
People |
"I would like to thank Erik for his contributions as a member of Group Management and his continued commitment to developing
Webcast
Shareholders, analysts and members of the media are invited to join a combined webcast presentation on the Group's strategic framework and FY 2021 Results at
Link to event: https://www.investis-live.com/skf/61e0528c0ba3f01200044369/eadd
Passcode: 142403
(publ)
This is information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at
For further information, please contact:
PRESS: Carl Bjernstam, Group Communication
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com
INVESTOR RELATIONS:
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com
®
https://news.cision.com/skf/r/skf-presents-new-strategic-framework--including-a-decentralized-operating-model,c3497706
https://mb.cision.com/Main/637/3497706/1529149.pdf
(c) 2022 Cision. All rights reserved., source