SKF AB

And this is something that is a joint initiative between Saab, Ericsson, SCB, AstraZeneca,

SKF, and Valdemar.

Yeah, that's all the Swedish companies.

Yes.

And we are seeing some companies that are doing a pretty good job on that.

A really good example of that, I think, is SKF, that some of you will know, is perhaps the world's largest, SKF is the largest bearing manufacturer in the world, making everything, bearings from tiny little micro bearings to the bearings on massive wind turbines and things of that sort.

And clearly SKF historically competed by producing the very best bearings in the industry and charging premium prices for them.

But again, like many of you, its customers are really asking what have you really done for me recently that will impact my bottom line.

So it has something called its documented solutions program.

And what it's developed over the last 10, 15 years is a database containing almost 20,000 case studies of SKF products in use where end-user investments and benefits have been identified, quantified, measured, and tracked.

Each case study captures the application of the bearing, the benefits the customer received, reduced failure rate, longer life, savings and labor materials, inventory, et cetera, the investments the customer had to make to get those benefits, for example, the premium paid for the SKF bearings, perhaps additional tools they had to buy, or add-on services they needed, such as condition monitoring services and things of that sort.

But with this database and the software tool, then SKF can calculate the expected savings and ROI for a customer from choosing the SKF solution over a competitive offering.

The reliability product is installed at 87 sites.

The agentic product, Enigma, is in a proof of value at its first site, with usage-based pricing under evaluation, and the company is working with SKF, the world's largest bearing maker, on a co-development programme, which for a business that predicts bearing failures for a living is the right partner to have.

The company sizes its British market at about £2.57 billion of annual recurring revenue, and the american midwest alone at about 1.2 billion and the industry forecasts its sites put industrial ai above 150 billion dollars by 2030. it is spending ahead of profit which is what growth capital is for and the 6.4 million is the fuel for exactly that list the American sales team, the agentic product and a rollout tool, the company says will cut the effort of taking a customer from one plant to many.

This is the kind of company the North is supposed to produce.

The problem is that neither we as investors, nor Martin himself, consider the other possible outcomes of Martin using this approach.

What if he, instead of hitting Ericsson with his first arrow, had hit SKF? Then his return would have been minus 12%, instead of 12%.

The issue is that, because of survivorship bias, we will never hear about the Martins who missed Ericsson for an SKF.

The highest performing realization will always be the most visible.

The book How I Lost 12% Investing in a Market that Declined 10% will never make it to the bookstore shelves.

Let's just, let's just do it.

Um, SKF, which is apparently the matter right now for good bearings.

I don't know.

Timkin went to shit is the, what the forums are saying.

AI recreated, I want to be alone, Greta Garbo appears in a Swedish ball-bearing advert.

What, you say? Yes, AI-generated version of Hollywood star Greta Garbo appeared in a 99-second advertisement for Swedish ball-bearing maker SKF in what is believed to be the first use of her lightness in moving images.

Since her death, the digital Garbo opens the advert by saying, Are we rolling? And later says, One of my first films was for SKF, and now I'm back for my last.

Oh, well, Garbo appeared in a 1921 film promoting the Swedish industries abroad, including SKF.

SKF said AI was used to recreate the Swedish-American actor.

The likeness was created using several AI models, including Seadream and Google Nano.

Banana Pro.

Yeah.

So, um, so Ricefield said he was flabbergasted when he saw the AI version of his great aunt created for the publicity for ball bearings, giant SKF.

The connection comes because Garbo's second ever screen role was in 1921 promotional film involving the company.

And it's like, Hey, Greta Garbo, remember that thing? You probably thought you in your life, you had evolved past and never had to do again.

And it is, I've said it, I, I've been saying it for years, it's a real exciting time to be in the condition monitoring space because the technology is moving so fast.

Um, you know, when I started almost 30 years ago, there was just a handful, and people have heard me say this 100 times, but there was just a handful Of, uh, you know, the legacy condition monitoring companies, whether it was, uh, you know, CSI, SKF, InTech, IRD, SPM, all those guys have been around for 60 plus years, right? True condition monitoring companies.

I mean, that's really all you had besides a few other companies that, that did some things.

But, you know, now it's kinda like the Wild West, right? So I, I think there is a lot to answer your question.

Another one is that we're looking at is something as simple as a chatbot.

We're rolling out a chatbot across different markets that allows frontline users to very simply and very easily to be able to create a notification and to be able to also look up the status of notifications, to be able to simply look for a material that without entering in like, okay, this particular class or this particular characteristic and these values, et cetera, the user just puts in, I've got bearing, I've got a part number, this was made by SKF, et cetera.

And so they're able to find that bearing and they're able to find not only how many they have in stock, but they can also see everywhere in the PepsiCo world where the rest of that stock exists.

So the value becomes, comes into not only having the access to the data, but where that global catalog becomes a precursor and a tremendous value for us to be able to do simplified searching of materials.