SKF Condition Monitoring Products Presented by Ian Balfour Manager of Condition Monitoring Centres

SKF Capital Markets Day 2008

Product and organisational overview

SKF The Knowledge Engineering Company Condition Monitoring Products: A comprehensive range of SKF products designed for monitoring machine health and avoid unplanned downtime. Condition Monitoring Centers: Four global locations responsible for product development, marketing, manufacturing and post-sale product support. Centers of Excellence (CoE): Each of the four Condition Monitoring Centers is responsible for a defined sector of the market. This enables each CoE to focus on meeting the unique needs of its customers. Capabilities: 250 people employed in SKF’s Condition Monitoring Centers. Sales channels: Products are sold through SKF’s global sales channels, either direct to end users or via distribution.

Condition Monitoring Centers of Excellence • San Diego, USA SKF @ptitude® software Acquired 1989

• Livingston, Scotland SKF Microlog® portable monitoring systems Acquired 2000

• Lulea, Sweden SKF Multilog® on-line monitoring systems Acquired 2001

• Fort Collins, USA (Baker Instruments) Electrical motor diagnostics Acquired 2007

Product range @ptitude Monitoring Suite @ptitude Decision Support @ptitude Inspector

@ptitude Analyst

portable systems

@ptitude Observer

on-line systems

@ptitude Plant Asset Management System Integrated software programs seamlessly work together Manage data from all SKF data acquisition devices Links to CMMS/ERP and DCS software

Recent acquisition – Baker Instruments

Baker Instruments, an SKF Group company Acquired June 2007 Company profile:

• Founded in 1972 • HQ in Ft. Collins, Colorado, USA • Subsidiary in Nürnberg, Germany • 62 employees

Products lines: • Continuous monitoring systems that

identifies faults that degrade motor health, motor performance and estimates energy savings • Off-line systems to find insulation problems in advance of failure and reduce unexpected down time

Baker Instruments, an SKF Group company Synergies • Extends SKF’s capabilities to include

monitoring and diagnostics of electric motors

• Baker’s Energy Efficiency Monitoring

technology supports SKF’s sustainability initiative

• Baker extends its sales capabilities by selling through SKF’s global sales channels

• Technical synergies with SKF’s Condition Monitoring Centers

Key new products

SKF Multilog DMx Protection and Vibration Monitoring System for critical rotating equipment

From this…

• Prevents catastrophic failure. • Predicts failure through condition monitoring • Primary focus is the energy segment

Innovation • First intrinsically safe distributed protection device • Major savings in total installed cost for user – approximately 50% • Industry first - 5 patent applications

To this…

Wireless machine condition detector Wireless vibration sensor increases safety, flexibility and convenience by eliminating cables.

Wireless monitoring system VT Wireless vibration sensor increases safety, flexibility and convenience by eliminating cables.

Segment specific products

Segment specific products Uniquely designed systems for segment applications

SKF SKFWindCon Condition Monitoring for wind turbines SKF WindCon - a unique platform customized to monitor a wide range of wind turbines for OEMs and aftermarket. • Customers select WindCon to monitor turbines and avoid catastrophic breadkdowns that affect production and maintenance costs. • WindCon is accessible from any location in the world via WebCon.

SKF Condition Monitoring for trains • The European Commission is placing a requirement for train OEM’s and operators to install systems for hot axle box detection and bogie hunting detection. • SKF is engaged with OEMs and train operators to supply them with a solution.

TAIL Research Project

TAIL partnership and SKF technology TAIL - Integrated Operations Concepts for safe and costeffective operations of facilities

• StatoilHydro, ABB, IBM, Aker Kvaerner and SKF collaborative R&D effort to develop new technology for oil and gas fields.

ODIN Wireless Vibration Monitoring • Project initiated by BP, ConocoPhillips and Statoil to develop a low cost, innovative and intrinsically safe vibration sensor. • This project is funded by the Norwegian Research Council under the Petromaks Program.

Customer success stories

Knorr-Bremse, Germany Customer need: A new remote monitoring capability for their railway brake control systems for trains in full service on the track. SKF solution: A jointly developed specialized electronic monitoring system based on an SKF Multilog IMx-R. Customer benefits: Early fault detection and prevention to further enhance train safety.

SAB Miller, USA Customer need: A Phase I Condition-Based-Maintenance (CBM) implementation partner to drive a measurable and effective program. Miller wanted a partner to lead strategic and tactical CBM Key Performance Indicators (KPI) improvement at 6 USA breweries. SKF solution: A comprehensive plan including Micrologs, remote monitoring, @ptitude software DSS, CMMS integration, on-site training and services.. Customer benefits: 185 documented condition based monitoring wins valued at USD 1 million. Include downtime reduction, increased production output, direct labor cost avoidance. In all functional areas: brewing, packaging & utilities.

@ptitude Decision Support Software case studies LAM paper mill • Improved accuracy of diagnostics (92%) • Reduced maintenance technicians from 3 to 2 NAM utility • Reduced analysis time by over 60% • Diagnostic accuracy was greater than 95% Euro gas turbine plant • Maintained equipment reliability with reduced staff • Captured knowledge to train new employees • Reduced data analysis time by 70%

Wireless V/T, NAM Chemical Recycling Facility Customer need: Recurring bearing failures/shutdowns in hot gas fans prompted root cause failure analysis since fan reliability is critical to maintaining environmental standards SKF solution: SKF Wireless Monitoring System V/T installed on the fans identified a design flaw in the ducting. Customer benefits: Correcting the flaw eliminated incorrect operation, overloading of the bearings and shutdowns which cost the company about $35,000 per event.

Key business message • SKF has a unique and comprehensive range of products • SKF has deep market, engineering and applications knowledge • SKF has a global presence • SKF continues to invest in this business • Product development • Research projects • Acquisitions