Brief introduction to Schaublin SA
Founded in 1915, Schaublin SA now enjoys a worldwide reputation for quality clamping systems and precision products for manufacturers of machine tools as well as other users.
We produce high quality, high precision products exported throughout the world under the Schaublin name. Since January 1, 2000, Schaublin SA has been part of RBC Bearings Co., a publicly traded U.S. based company.
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For more detail about RBC Bearings, please visit our website: http://www.***
RBC Bearings is a well known international manufacturer and marketer of highly engineered precision plain, roller and ball bearings. While we manufacture products in all major bearing categories, our focus is primarily on highly technical or regulated bearing products for specialized markets that require sophisticated design, testing and manufacturing capabilities. Our unique expertise has enabled us to garner leading positions in many of the product markets in which we primarily compete.
RBC Bearings has been providing bearing solutions to our customers since 1919. Over the past ten years, under the leadership of our current management team, RBC Bearings has significantly broadened our end markets, products, customer base and geographic reach. We currently have 25 facilities, of which 23 are manufacturing facilities, in four countries.
RBC Bearings employs a technically proficient sales force and utilizes marketing managers, product managers, customer service representatives and product application engineers in our selling efforts. We have developed our sales force through the hiring of sales personnel with prior bearing industry experience, complemented by an in-house training program. Our direct sales force, which is strategically located to service North America, Europe and Latin America, is responsible for selling all our products. These selling efforts are supported by a global network of sales engineers, distributors and authorized agents.
The Bearing Industry
Bearings are integral to the manufacture and operation of most machines and mechanical systems. They reduce wear to moving parts, facilitate proper power transmission and reduce damage and energy loss caused by friction. The bearing industry is a fragmented multi-billion dollar market. Purchasers of bearings include producers of commercial and military aerospace equipment, automotive and commercial truck manufacturers, industrial equipment and machinery manufacturers, agricultural machinery manufacturers and construction, mining and specialized equipment manufacturers.
Our Competitive Strengths
Leading Market Positions - RBC Bearings competes in specialized markets where we are often the only supplier with the manufacturing expertise, business plan and engineering resources to provide the required bearing solution. An estimated two-thirds of our net sales during fiscal 2012 and fiscal 2011 were generated by products for which we hold the number one or two market position. Most of our products undergo lengthy and rigorous customer certification processes and/or approvals, while our aerospace and defense products generally require additional FAA and military certification, respectively. We often participate in our customers' product design and/or certification process which can take up to six years to complete.
Diversified Revenue Base - RBC Bearings sells a wide array of bearing products to customers across diverse end markets, each of which is influenced by different fundamental economic factors. Our products are sold to OEMs, aftermarket distributors and service providers. Our top ten customers generated 28% of our net sales and no single customer represented more than 5% of our net sales during fiscal 2012.
Large Installed Product Base with Recurring Aftermarket Revenue Stream - Our product base has over 32,800 applications, many of which are part of aerospace, defense and industrial platforms. These products can be in service for as long as several decades, thereby requiring continuing aftermarket support. Aftermarket sales of replacement parts for existing equipment platforms represented approximately 52% of our net sales for fiscal 2012. We are well positioned to continue to capture recurring revenue from these product lines due to high customer switching costs and our unparalleled service levels.
Proprietary Design and Manufacturing Capabilities - Our bearing engineering and manufacturing expertise, including our dedicated team of engineers and proprietary manufacturing capabilities, position us to provide high quality, innovative solutions to our targeted markets in a timely way. These design and manufacturing capabilities allow us to maintain a leadership position as our customers continue to rely on us to develop new, cost-effective bearing solutions.
Disciplined Acquisition Program with History of Successful Integration - RBC Bearings has demonstrated expertise in acquiring and integrating bearing and precision-engineered component manufacturers that: 1) have complementary products or distribution channels; and 2) provide significant potential for margin enhancement. We have consistently increased the profitability of acquired businesses through a process of methods and systems improvement coupled with the introduction of complementary and proprietary new products. Since October 1992, RBC Bearings has completed 20 acquisitions which have significantly broadened our end markets, products, customer base and geographic reach.
Experienced Management Team - Our management team possesses extensive managerial experience in the bearing industry, with our top operating executives averaging over 20 years of bearing industry experience. We retain and attract experienced professionals by leveraging our reputation as a premier provider of precision bearing solutions.
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