Focused Industries Presented by Thomas Fröst, Director Focused Industries 2 December 2018

Focused Industries and Strategic Business Marine Pulp and Paper Metals Mining Food and Beverage Focused Industries: To translate and communicate industry trends and customer challenges To construct an attractive differentiated portfolio To drive implementation through effective strategic account management and channel development Strategic business – to give direction for prioritized: Industries Markets Strategic accounts and sales channels Products, services, competences and technologies CMD 2013

Focused Industries trends and focus Pulp and Paper Increased demand in emerging economies Consumption reducing in NAM and WE Outsourcing maintenance activities in NAM/LAM/Europe Expand presence in growth markets Sustain existing business in mature markets Metals Meeting demand for resources Dealing with volatility Reduction of energy and materials Power from West to East Utilize and expand existing portfolio Mining Sustainability Remote Monitoring / Operations Centers Diversification and consolidation “Extreme mining” Establish long term relationships as solution provider Develop preferred distributors Hygienic manufacturing Food safety Automation and cost efficiency Position SKF as the most knowledgeable supplier in the industry Food and Beverage CMD 2013

Marine business going strong 2 December 2018

Focused Industry: Marine We provide solutions to minimise the operational costs, throughout the ship life cycle by improving Energy efficiency Asset availability Health, safety and environmental (HSE) performance CMD 2013

Market developments The transportation sector still suffers from over capacity Early indications of increasing long term confidence Offshore and LNG sectors continue strong New exploration projects, new environments Larger and more efficient tonnage is most competitive Ship operator’s needs Minimize operating cost Improve energy efficiency Increase availability Compliance of stricter regulations (HSE) Conclusion: However, SKF is mainly involved with advanced ship types and this market is growing. CMD 2013

Customer focus Increased activity for advanced propulsion systems, such as thrusters, electric pods and water jets Very high activity level in new and re-design projects OEM focus is currently on reliability, lead times and costs Ship owners focus on minimising the operational costs: Energy Efficiency, Availability and HSE best-practice Focus in the end-user market on the leading ship owners and high-value ship types, including: Offshore (all ship types), LNG, Cruise and Ice-going vessels CMD 2013 2 December 2018

SKF Marine Strategic Programs Secure the leadership with propulsion system OEMs Position SKF as a preferred application development partner Widen the scope of supply for the application life cycle Market leader for Asset Management for End-Users Promote and develop existing service platform offers Worldwide Establish dedicated sales and service delivery resources Position SKF as a “Marine Specialist” Raise the awareness of SKF marine global capabilities, with: Market leaders across the value chain, Influencers, Media Supplier Builder Owner and operator Where does BVI fit in here? CMD 2013 2 December 2018

Becoming a preferred partner in Marine by acquiring Blohm+Voss Industries Positions SKF as a preferred application development partner Strengthens SKF’s service capabilities and global presence Complementing SKF’s product and service range with marine sealing arrangements, hydrodynamic bearings, stabilizer systems and oily water treatment Receiving a strong customer network with shipyards & ship owners, in addition to SKF’s strong position towards OEM’s CMD 2013

Marine in Regional Sales and Service Page 9 Marine in Regional Sales and Service CMD 2013 2 December 2018 2 December 2018

Marine global coverage now including Blohm+Voss Industries network Page 10 Marine global coverage now including Blohm+Voss Industries network RSS Marine competence BVI Headquarters Sales Agents Service Stations CMD 2013 2 December 2018 2 December 2018

Growth ambitions in the Marine industry Synergies Net sales SKF BVI Synergies SKF BVI Existing business Existing business Existing business Time 2012 2013 FC 2017 Target CMD 2013 2 December 2018

Customer references David Crane, Technical manager for Farstad: Hyundai Heavy Industries states in their marketing material for the new range of thrusters: SKF Explorer class bearings Optimum Selection & Arrangement Bearing service life: > 40.000 hours David Crane, Technical manager for Farstad: “We have had great success with this conditioning monitoring system over the years. We have averted a number of major failures and resultant loss of hire or damage / injury through advanced warning of potential failures. Not only are we able to avoid failures we can also minimise maintenance costs of larger electric motors by monitoring the bearing condition thereby extending service intervals greatly.” CMD 2013

Shaft-line solutions 13 Couplings and Supergrip bolts Condition monitoring (Vib, temp, oil, etc.) SKF Vibracon machine foot Alignment and troubleshooting Intermediate shaft bearings Application engineering services Hydraulic nut for propeller mounting Centralised lubrication system Stern tube seals Bearing arrangements Propeller sleeve Thrust bearings Simplex system (seals and bushings) Mounting and maintenance tools CMD 2013 2 December 2018 13

SKF Blohm+Voss Industries portfolio Oily Water Separators For separation of bilge water into pure water and oily/greasy parts Complete system Stabilizers Reduce roll amplitude up to 90% Retractable and non-retractable fin stabilizers (incl. “Zero speed”) Shaft components Sterntube seals, which protect the shaft-bush-bearing against the ingress of sea-water and the sea-water from oil-pollution Turn-key system CMD 2013 2 December 2018

2 December 2018