Alrik Danielson, President and CEO SKF Q4 results 2017 Alrik Danielson, President and CEO 19 September, 2018

Key events in the fourth quarter Digitalisation and connectivity SKF Enlight Centre – a first-of-its-kind, asset based machine health monitoring system, featuring a radically simplified user interface. SKF SimPro Expert – a new advanced simulation software tool that gives customers the power to develop applications taking advantage of the performance of SKF bearing arrangements. New business Agreement with Koncar to supply bearings and axleboxes for low-floor electric and diesel-electric trains. Selected to supply several components to the next- generation electric powertrain platform for a large OEM 19 September, 2018

New multi-year agreement with ArcelorMittal 19 September, 2018

Continued organic growth and margin improvement in Q4 Sales 19,480 M, organic sales +8.2% compared to Q4 2016 Adjusted operating profit 2,092 M (1 741), full year 9,096 (7,544) Adjusted operating margin 10.7% (9.3), full year 11.7% (10.4) Items affecting comparability -75 M (-155) Cash flow 1,704 M (1,428), full year 4,753 (7,717) Profit before tax 1,784 M (1,376), full year 7,658 (6,739) Proposed dividend SEK 5.50 (5.50) 10.7% Operating margin* * Adjusted for items affecting comparability 19 September, 2018

Sales development by geography Organic growth in local currency Q4 2017 vs Q4 2016 Europe +9.1% North America +4.7% Asia/Pacific +10.0% Latin America +7.3% Middle East & Africa +13.3% 19 September, 2018

Q4 results – the details Christian Johansson, CFO 2 Q4 results – the details Christian Johansson, CFO

Sales development 2016 2017 Q4 Q1 Q2 Q3 Organic +1.2 +8.0 +7.5 +8.2 Percent y-o-y Q4 Q1 Q2 Q3 Organic +1.2 +8.0 +7.5 +8.2 Structure -1.8 -2.0 -0.7 -0.6 Currency +3.7 +4.9 -3.0 -3.6 Net sales +3.1 +10.9 +10.4 +4.3 +4.0 19 September, 2018

Organic sales growth 19 September, 2018

Adjusted operating profit* SEK bn, 12m moving SEK bn 2.1 2.1 1.7 1.7 2014 2015 2016 2017 * Adjusted for items affecting comparability 19 September, 2018

Operating profit 19 September, 2018

Performance by customer group Industrial Net sales 13,487 M, full year 53,972 (50,588) Organic sales +7.7% Adjusted operating margin* 12.9%, full year 13.7% (12.1) Automotive Net sales 5,994 M, full year 23,966 M (22,001) Organic sales +9.6% Adjusted operating margin* 5.9%, full year 7.2% (6.5) * Adjusted for items affecting comparability 19 September, 2018

10.7% Operating margin* SKF Group – Q4 2017 Financial performance (SEKm) 2017 2016 Net sales 19 481 18 732 Cost of goods sold -14 691 -14 337 Gross profit 4 790 4 395 Gross margin, % 24.6% 23.5% Gross margin, excluding IAC, % 23.8% Selling and administrative expenses -2 762 -2 834 Other operating expenses -11 25 Operating profit 2 017 1 586 Items affecting comparability -75 -155 Adjusted operating profit 2 092 1 741 Operating margin, % 10.4 8.5 Adjusted operating margin, % 10.7 9.3 Financial income and expense, net -233 -210 Profit before taxes 1 784 1 376 Taxes 179 -406 Net profit 1 963 970 Basic earnings per share, SEK 4.12 1.95 10.7% Operating margin* * Adjusted for items affecting comparability 19 September, 201819 September, 201819 September, 201819 September, 2018

Positive impact from the US tax reform Q4 2017 Federal corporate income tax cut from 35% to 21% beginning in 2018. Including state taxes, total corporate income tax is around 25%. In Q4, revaluation of deferred tax assets/liabilities led to a positive effect on the tax cost of around SEK 770 M and a negative effect in other comprehensive income of around SEK 400 M. 2018 In 2018, SKF’s US corporate income tax will be reduced by around USD 10 M. The SKF Group tax rate is expected to be around 29%, excluding effects from divestments/acquisitions. 19 September, 2018

Cash flow after investments before financing* * After investments before financing (excluding acquisitions and divestments and EU payment in Q2 2014.) 2013 and 2014 are restated 19 September, 2018

Net working capital 29.0% of annual sales 19 September, 2018

Net debt decreased by 0.9 billion in the quarter 19 September, 2018

Guidance for 2018* Q1 2018: Financial net: around -225 million Currency impact on the operating profit is expected to be around 300 million negative compared with 2017, based on exchange rates per 31 December, 2017. 2018: Tax level: around 29% for 2018, excluding effects from divestments Additions to property, plant and equipment: around 2,400 million for 2018 * Guidance is approximate and based on current assumptions and exchange rates. 19 September, 2018

February 2018: SKF demand outlook Q1 2018 Demand compared to the first quarter 2017 The demand for SKF’s products and services is expected to be higher for the Group, including Industrial and Automotive. Demand is expected to be higher in Europe, relatively unchanged in North America, significantly higher in Asia and slightly higher in Latin America. Demand compared to the fourth quarter 2017 The demand for SKF’s products and services is expected to be slightly higher for the Group and Industrial and higher for Automotive. Demand is expected to be higher in Europe, North America and in Latin America and lower in Asia. 19 September, 2018

Financial calendar Q4 report 1 February Stockholm Roadshow US Roadshow 5-6 February Annual report 2017 March Carnegie Capital Goods seminar Stockholm 14 March BAML London Conference 20 March Annual General Meeting 27 March Q1 report 26 April JP Morgan Conference London 15 June 19 September, 2018

SKF Q4 results 2017 Q & A 19 September, 2018

Cautionary statement This presentation 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 annual report (available on www.skf.com) under the Administration Report; “Risk management at SKF" and "Sensitivity analysis”.

19 September, 2018