The SKF Group Year-end result 2003 Tom Johnstone President and CEO

SKF Group Summary Q4, 2003 Good operational performance - Operating margin 10.3 % (ex restructuring and impairments) - Strong cash flow - Inventories down - Good sales growth in local currencies - Positive price/mix development Key activities - 2 factories opened in China - New business Restructuring and impairment activities in line with guidance - Restructuring MSEK 282, Impairments MSEK 205 - Booked MSEK 421 as COGS, MSEK 66 as Selling Expenses - Main areas announced .

SKF Group Fourth quarter 2003 2003* 2003 2002 Net sales 10 245 10 665 Operating profit 1 056 569 1 121 Operating margin 10.3 % 5.6 % 10.5 % Profit before taxes 966 479 979 Net profit 405 719 Earning per share 3.56 6.34 Cash flow ** 812 559 * excluding restructuring and impairment in Q4 2003 **after investments before financing

SKF Group Full year 2003 2003* 2003 2002 Net sales 41 377 42 430 Operating profit 3 786 3 299 4 022 Operating margin 9.2 % 8.0 % 9.5 % Profit before taxes 3 280 2 793 3 542 Net profit 2 039 2 466 Earning per share 17.91 21.67 Cash flow ** 2 351 2 644 * excluding restructuring and impairment in Q4 2003 **after investments before financing

Sales in local currency SKF Group Sales in local currency % change y-o-y 2001 2002 2003

Net sales development per quarter SKF Group Net sales development per quarter Percent y-o-y 2001 2002 2003 Structure Volume Price / Mix Sales in local currency Currency Q3 Q4 Q1 Q2 0.4 1.0 1.4 1.9 2.0 0.7 0.1 0.2 0.3 - 3.2 - 3.8 - 7.3 -0.5 3.3 3.9 6.2 3.2 4.2 3.1 1.6 2.1 1.5 1.2 1.7 0.6 - 1.2 - 0.7 - 4.4 2.8 6.5 7.0 8.1 5.6 3.5 8.9 6.7 2.2 -3.7 -8.3 -10.8 -9.3 -8.6 -5.5 -7.4 7.7 6.0 - 2.2 -0.9 -1.8 -3.8 -1.2 -4.7 -3.9 Net sales

Operating margin Adjusted* SKF Group Operating margin Adjusted* % 2001 2002 2003 * excluding restructuring and impairment in Q4 2003

Operating margin per division Adjusted* SKF Group Operating margin per division Adjusted* % Service Industrial Electrical Automotive Aero and Steel 2001 2002 2003 * excluding restructuring and impairment in Q4 2003

Inventories as % of annual sales Target 20% SKF Group Inventories as % of annual sales Target 20% % 2001 2002 2003

* Short-term financial assets - Loans SKF Group Net cash* MSEK Dividend paid: 2003 Q2, MSEK 911 2002 Q2, MSEK 683 2001 Q2, MSEK 598 Dividend proposal: 2004 Q2, MSEK 1 138 2001 2002 2003 * Short-term financial assets - Loans

SKF Group Net interest bearing liabilities, 2003 (Short-term financial assets - loans - net postemployment benefits) MSEK

* Board proposal for 2003 dividend SKF Group Dividend development SEK * Board proposal for 2003 dividend

SKF B

SKF Group Volume trend External sales 2003 Oct 2003 Jan 2004 Europe 57% North America 22% Asia Pacific 14% Latin America 4% Total

SKF Group Volume trend External sales 2003 Oct 2003 Jan 2004 Industrial 23% Automotive 32% Electrical 4% Service 32% Aerospace 4%

SKF Group Outlook January 2004 The market demand for the Group's products and services is expected to improve during the first quarter 2004. In Europe it is expected to be slightly higher, while it will remain relatively flat in North America. Demand is expected to increase significantly in both Asia and Latin America. Manufacturing will, as is normal during the first half of the year, be increased slightly ahead of market demand to ensure a good service level throughout the summer period.

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

SKF Group Operating margin - adjusted %

Sales growth in local currencies SKF Group Sales growth in local currencies %

Examples of growth areas 2003 / 2002 SKF Group Examples of growth areas 2003 / 2002 China +35 % Central and Eastern Europe +10 %

Examples of growth areas 2003 / 2002 SKF Group Examples of growth areas 2003 / 2002 Medical segment within Linear Motion business 12% Vehicle Service market 10% SKF Railway segment 10 %

SKF Group Areas in focus 2004 Operating margin level - maintain a positive price mix - implement restructuring plan Continued sales growth - maintain organic growth pace - acquisitions Cash flow in line with net profit Launch Six Sigma throughout SKF Group

SKF Group Cautionary Statement 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".