Annual General Meeting SKF India Limited

Shishir Joshipura, Managing Director

SKF India Limited

© SKF Group 10 January 2020Slide 1

GDP & Industry Growth

• Economy grew 7.5% in Q4 2014 over the same quarter of the previous year

• Industrial growth softened to 3.9% in Q4 2014

• Agri sector growth negative (-0.4%) for the first time since Q2 2013

7.2% 7.5%

6.6%

5.3%

7.0%7.8% 7.5%

0%

3%

6%

9%

Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014

Quarterly GDP GrowthAt 2011-12 prices

-2%

2%

6%

10%

14%

Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013 2014

Quarterly GDP Growth: Sector-wise

Agriculture Industry Services

At 2011-12 prices

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WPI & IIP

Overall Industrial Production remained subdued due to volatile markets, contraction of demand and high interest regime

-3%

0%

3%

6%

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

Index of Industrial Production

2014 2015

Feb 14, -

2.0 %

Feb 15, + 5.0

-4.0%

0.0%

4.0%

8.0%

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

Wholesale Price Index

2014 2015

Mar 2015, - 2.3%

Mar 2014, + 6.0%

Average Wholesale Price Index (WPI) inflation declined to 3.4% in 2014-15 as compared to an average of 6% during 2013-14.

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PMI

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Business update

© SKF Group © SKF Group Slide 5

SKF India Sales Development

© SKF Group © SKF Group Slide 6

Sales break up

Automotive Markets 43%

Exports 6%

Industrial Markets 51%

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EPS, ROCE, RONW, Dividend

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Continue to be with winning customers

Oil & Gas Food & Beverage

Industrial Machinery

EnergyHeavy IndustryAutomotive

© SKF Group

Staying ahead

We continued to partner with our customers and help them to win in their markets by being more competitive

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• Innovative products and solutions

• Services as a clear differentiator

• Energy efficient solutions

• Being closer to customers

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Partnering for growth

Over 35 Integrated contracts with customers across all major segments- Delivering SKF Reliability

Services as a clear differentiator

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Ensuring uptime and reduced maintenance costs for the major steel manufacturer by redesigning of rolls for casters with bearings, housings & training

Overcoming breakdowns Innovative products and solutions

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Weaving strong ties with customers

SKF has now become a major bearing supplier for the world’s largest textile machinery manufacturer

Closer to customers

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Our breakthrough automatic lubrication system-System 24 helped Holcim address its lubrication challenges, thereby reducing downtime and ensuring safety of operations

Cementing relationships with solutions for safety at Holcim Innovative products and solutions

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Supported country’s largest CNC machine manufacturer increase precision in jobs by SKF Mechatronics solutions, thereby securing a major share of business

Adding speed and reliability Innovative products and solutions

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Refurbishing and adding back value

SKF is undertaking gearbox refurbishment for a major wind energy producer, leading to reduction of total cost of operations for them

Services as a clear differentiator

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Partnering for sustainable energy

SKF bearings will power the turbine generators of a leading Indian wind energy producer, thereby upholding our BeyondZero promise

Innovative products and solutions

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Fighting counterfeit

Joint effort by SKF and Authorized Industrial Distributors to include counterfeit awareness sessions during customer shows

Launched Genuine@skf.com program

Closer to customers

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SKF increased its share of business with a major supplier of India’s leading car manufacturer, thereby strengthening profitability

On profitable pathsCloser to customers

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Powering tomorrow

SKF’s 3rd generation wheel bearing unit is powering an upcoming vehicle for one of India’s largest car makers

Innovative products and solutions

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New horizons

SKF has won a major share of business from one of the largest two wheeler manufacturers for Rocker Arm Bearing a value added (VAS) product range

Services as a clear differentiator

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SKF Sports Academy goes to the next level with a tie up with Pune Football Club (PFC) to train the boys and girls team

SKF Sports Academy scaling greater heights

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Empowerment through education

Partnering with Lila Poonawalla Foundation-sponsoring 40 bright and promising girl students for Engineering and Science streams (Graduate and Post Graduate)

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Grooming young entrepreneurs through Vocational Training

Training underprivileged youth on Two and Four Wheeler maintenance and repair

© SKF Group

SKF India reducing carbon footprint – CO2 in M.Tons

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© SKF Group

Proud moments

• Ranked among the top 50 India’s most admired company by Fortune India survey for three years in a row

• Dun & Bradstreet Award for the Best Bearing company in India for 8 consecutive years

• Gold award by Frost & Sullivan and Economic Times Manufacturing Excellence awards for the Pune plant and Haridwar plant.

© SKF Group

Customer recognition - 2014

•Excellence award Partner Level recognition by John Deere for SKF India Ltd.

•Superior performance award by Mahindra & Mahindra

•Best supplier award by India Yamaha Motor Pvt Ltd

•Best performer award in the engineering spares category by Ultratech

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Creating winning partnerships for you