The SKF Group Half-year result 2003 Tom Johnstone President and CEO

Key issues Q SKF Group Solid financial performance - maintained operating margin - reduced inventories - positive cash flow Structure activities continuing - two acquisitions - one divestment

Net sales % Operating profit % Operating margin9.0%9.5% Profit before taxes % Net profit Earnings per share, SEK % Cash flow* *after investments before financing MSEK Second quarter 2003 SKF Group

Net sales % Operating profit % Operating margin9.0% 9.0% Profit before taxes % Net profit Earnings per share, SEK % Cash flow* *after investments before financing MSEK Half-year result SKF Group

Profit before taxes 2001 MSEK SKF Group

SEK Earnings per share SKF Group

Net sales MSEK SKF Group

% change y-o-y Sales in local currency SKF Group

Q1Q2Q3Q4Q1Q2 Q3 Q4Q1Q Structure Volume Price / Mix Sales in local currency Currency Net sales development per quarter 2002 Net sales 2001 Percent y-o-y 2003 SKF Group

% Operating margin SKF Group

Operating margin per division Industrial Service Aero and Steel Electrical Automotive % SKF Group

Accumulated change in the number of employees 2002 acquisitions capacity adjustment and restructuring Employees 2003 SKF Group

Cash flow after investments before financing MSEK SKF Group

% Inventories as % of annual sales Target: 20 % SKF Group

Additions to tangible assets MSEK Depreciation according to plan YTD June 2003 SKF Group

Net cash* MSEK SKF Group * Short-term financial assets - Loans Dividend paid: 2003 Q2, MSEK Q2, MSEK Q2, MSEK 598

Number of acquisitions Jan June 2003 Europe Eastern Europe North Americ a Australia Latin America Industrial Automotive Electrical 1 Service 4 11 Aero 1 SKF Group Number: 16 Investment:MSEK =acquisitions made during 2003

Acquisition strategy SKF Group Acquisitions are an integral part of the profitable growth strategy. A systematic acquisition process has been established. Management and financial resources are available. Acquisition criteria: strategic fit with clear potential synergies and ability to exploit these in a reasonable timeframe strong commitment and ownership by acquiring Division cash flow and EPS accretive in the first full year. Including goodwill amortization. positive TVA effect (covering full cost of capital) in two to three years. Including goodwill amortization.

SKF Group Target 10 % operating margin level 10 BSEK additional annual net sales To be reached within the 2005/2006 time period

Drive operational excellence Grow new markets and segments Introduce new products and solutions Develop our people and competencies SKF Group Focused areas:

Volume trend Europe 55% 26% 13% 4% North America Asia Pacific Latin America External sales 2002 July 2003 April 2003 SKF Group Total

Volume trend Automotive 32% 4% 32% Electrical Service External sales % Industrial Aero (excl.forging and steel) 5% April 2003 July 2003 SKF Group

Outlook July 2003 The market demand for the Group’s products and services is expected to be somewhat lower during the third quarter, with Europe slightly weaker, North America relatively unchanged and continued strong growth in Asia. Manufacturing will be reduced during the quarter in order to continue the reduction of inventory levels. SKF Group

This report contains forward-looking statements that are based on the current expectations of the management of SKF. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors mentioned in SKF's latest 20-F report on file with the SEC (United States Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk Factors". Cautionary Statement SKF Group