Alrik Danielson, President and CEO SKF Q1 results 2018 Alrik Danielson, President and CEO 16 November, 2018

7.5% Organic sales growth 2,625 M Operating profit A record start to 2018 7.5% Organic sales growth Record-high sales of 20,560 M, organic growth +7.5% Record-high reported operating profit 2,625 M (2,295) Operating margin 12.8% (11.7) Cash flow 259 M (64) 2,625 M Operating profit 12.8% Operating margin 16 November, 2018

Improving performance towards our targets Targets set in 2016 and valid over a business cycle: 7.5% Organic growth: Target: 5% 12.8% Operating margin: Target: 12% 66% Net debt / equity: Target: <80% 31.7% Net working capital: Target: 25% 15.0% Return on capital employed: Target: 16% 16 November, 2018

Sales growth in all markets Organic growth in local currency Q1 2018 vs Q1 2017 Europe +7.6% North America +3.2% Asia/Pacific +13.2% Latin America +0.7% Middle East & Africa +11.0% 16 November, 2018

Rotating equipment performance creates value Customer performance Connected to customer applications, SKF will create and capture value and deliver functionality Connections include: Condition monitoring Integrated supply chain Application knowhow Foresight Create customer value Product & service Insight Hindsight 16 November, 2018

Unplanned production stops cost billions Every time a machine is stopped and opened for maintenance when not needed drives cost New technology provides radically different tools for SKF to strengthen the competitiveness of our customers 16 November, 2018

SKF to supply bearings to Volkswagen’s all-electric MEB vehicle powertrain platform 16 November, 201816 November, 201816 November, 201816 November, 2018

LEAP Engine : a success for SKF SKF is a development partner in manufacturing, design and testing of main shaft and gearbox bearings Ceramic hybrid main shaft ball bearings SKF supports the LEAP program with a global supply chain, with plants in US and Europe. Key figures 14,300 total engine orders and commitments as of Feb. 2018 Sole engine for Boeing 737 and COMAC C919 aircrafts, and 50% market share on Airbus A320neo SKF has now produced more than 6,000 main shaft bearings SKF selected for all main shaft and most gearbox bearings for the LEAP Engine SKF has now produced more than 6,000 bearings for the LEAP Engine 16 November, 2018

Q1 results – the details Christian Johansson, CFO 2 Q1 results – the details Christian Johansson, CFO

Sales development 2017 2018 Q1 Q2 Q3 Q4 Organic +8.0 +7.5 +8.2 Percent y-o-y Q1 Q2 Q3 Q4 Organic +8.0 +7.5 +8.2 Structure -2.0 -0.7 -0.6 Currency +4.9 -3.0 -3.6 -1.9 Net sales +10.9 +10.4 +4.3 +4.0 16 November, 2018

Organic sales growth --------------- 16 November, 2018

Operating profit 16 November, 2018

Operating profit 16 November, 2018

Performance by customer group Industrial Net sales 14,241 M Organic sales +8.5% Operating margin 15.0%, (14.0) Automotive Net sales 6,319 M Organic sales +5.5% Operating margin 7.7%, (6.8) 16 November, 2018

12.8% Operating margin SKF Group – Q1 2018 Financial performance (SEKm) 2018 2017 Net sales 20 560 19 601 Cost of goods sold -15 312 -14 627 Gross profit 5 248 4 974 Gross margin, % 25.5% 25.4% Selling and administrative expenses -2 700 -2 691 Other operating income/expense 77 12 Operating profit 2 625 2 295 Operating margin, % 12.8 11.7 Financial income and expense, net -200 -170 Profit before taxes 2 425 2 125 Taxes -638 -654 Net profit 1 787 1 471 Basic earnings per share, SEK 3.77 3.09 12.8% Operating margin 16 November, 201816 November, 201816 November, 201816 November, 2018

Cash flow after investments before financing* 16 November, 2018

Net working capital 31.7% of annual sales 16 November, 2018

Net debt/equity improved to 66 percent in the quarter 16 November, 2018

Guidance for 2018* Q2 2018: Financial net: around -200 million Currency impact on the operating profit is expected to be around 160 million negative compared with 2017, based on exchange rates per 31 March, 2018. 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. 16 November, 2018

Reporting changes No adjustment for IAC on operating profit No sequential demand guidance Segment definitions have been aligned with industry standard Segment changes: Cars & Light trucks has been renamed to Light vehicles and includes two-wheelers Industrial Heavy and Special has been split in Agriculture, Food and Beverage, Industrial Drives and Marine Industrial General has been reclassified to Industrial Drives Other Industry has been renamed to Other Industrial 16 November, 2018

Summary – Q1 a good start to 2018 7.5% Organic sales growth Continued growth in Q1 Record-high sales and operating profit Expect to see continued growth in Q2 – higher volumes year-over-year 2,625 M Operating profit 12.8% Operating margin 16 November, 2018

April 2018: SKF demand outlook Q2 2018 Demand compared to the second 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, significantly higher in Asia and relatively unchanged in North America and Latin America. 16 November, 2018

SKF Q1 results 2018 Q & A 16 November, 2018

Financial calendar Q1 report 26 April Virtual Roadshow 15 May JP Morgan Capital Goods Conference London 15 June Q2 report 19 July SEB Industrial & Technology Seminar Stockholm 23 August SHB Nordic Large Cap Seminar Stockholm 12 September Q3 report 25 October Capital Markets Day November 16 November, 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".

16 November, 2018