SKF Half-year results 2014 Tom Johnstone, President and CEO 15 July 2014

© SKF Group 15 July 2014 Examples of new business Envision Energy, ChinaStrategic long-term partnership A customer in the automation industry Roller screw electromechanical cylinder Dongfang Electric New Energy EquipmentMain shaft bearings Aurizon, AustraliaService contract A customer in the oil and gas industryAsset management services Bosch Service, BrazilSKF’s vehicle aftermarket product range Slide 2

© SKF Group 15 July 2014 Highlights Inauguration of SKF Campus and SKF North East Asia Distribution Centre in Shanghai. New SKF Solution Factory in Nieuwegein in the Netherlands. Events during the quarter: - SKF Wind Farm Management Conference in Berlin - SKF Life Cycle Management Conference in Buenos Aires - SKF Asset Management Conference in Prague Slide 3

© SKF Group 15 July 2014 Customer awards Slide 4 Best Technical and Service Award 2013 – Envision Energy, China Supplier Excellence Award 2013 – National Oilwell Varco (NOV), USA Premium Supplier Award – Joy Global Underground Mining LLC, USA Marine Supplier of the year Award 2014 – Rolls-Royce Marine Excellent Supplier Award – ABB Marine, China Supplier Certification of Appreciation – Nissan, China Quality Gold Award 2013 – Yamaha Motor Company The Qualitas Award – Fiat/Chrysler, Argentina

© SKF Group 15 July 2014 New products and solutions Slide 5 SKF Wireless MicroVibe SKF Wireless Machine Condition Sensor Connect SKF Shaft Alignment Tool Low friction grease for hub bearing units SKF Gear Bearing Unit Floating piston Electric grease transfer pump SKF Tachometer Low torque operator valve solution Turbulo BlueMon emission monitoring system

© SKF Group 15 July 2014 SKF Group – Q Slide 6 Financial performance (SEKm) Net sales17,95516,392 Operating profit2,0961,837 Operating margin, % Operating margin excl. one-time items, % Profit before tax1,7611,627 Basic earnings per share, SEK Cash flow after investments before financing excl. EU payment1,4231,147 Cash flow after investments before financing-1,4021,147 Organic sales growth in local currency: SKF Group4.6%Europe1% Strategic Industries11.1%North America3% Regional Sales and Service2.0%Asia14% Automotive1.3%Latin America2% Middle East and Africa14% Key points Sales volumes up by 3.6% y-o-y. Manufacturing was slightly higher compared to last year.

© SKF Group 15 July 2014 SKF Group – Half year 2014 Slide 7 Financial performance (SEKm) Net sales34,68931,544 Operating profit4,1203,317 Operating margin, % Operating margin excl. one-time items, %11.9 Profit before tax3,5482,864 Basic earnings per share, SEK Cash flow after investments before financing excl. EU payment1, Cash flow after investments before financing-1, Organic sales growth in local currency: SKF Group5.2%Europe3% Strategic Industries9.0%North America3% Regional Sales and Service2.2%Asia13% Automotive4.5%Latin America1% Middle East and Africa18% Key points Sales volumes up by 5.0% y-o-y. Manufacturing was higher compared to last year.

© SKF Group 15 July 2014 Organic sales growth in local currency Slide 8 % change y-o-y

© SKF Group 15 July 2014 Organic sales growth in local currency Slide 9 % y-o-y Structure in 2012: 0.4% Structure in 2013: 2.5% Structure in 2014: 4.2% -2.5% -0.7% 5.2%

© SKF Group 15 July 2014 Sales development by geography Organic growth in local currency Q vs Q Slide 10 Europe 1% Asia/Pacific 14% Middle East & Africa 14% Latin America 2% North America 3%

© SKF Group 15 July 2014 Sales development by geography Organic growth in local currency YTD 2014 vs YTD 2013 Slide 11 Europe 3% Asia/Pacific 13% Middle East & Africa 18% Latin America 1% North America 3%

© SKF Group 15 July 2014 Components in net sales Slide Percent y-o-y Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 Volume Structure Price/mix Sales in local currency Currency Net sales

© SKF Group 15 July 2014 Operating profit as reported Slide 13 SEKm

© SKF Group 15 July 2014 Operating profit excluding one-time items Slide 14 SEKm

© SKF Group 15 July 2014 Operating margin Slide 15 % * 11.9* One-time items * Excluding one-time items 11.9* 11.9

© SKF Group 15 July 2014 Slide 16 Regional Sales and Service Specialty Business Automotive % Operating margin per business area as reported Strategic Industries

© SKF Group 15 July 2014 Slide 17 Regional Sales and Service Specialty Business Automotive % Operating margin per business area excl. one-time items Strategic Industries

© SKF Group 15 July 2014 SKF’s programme to improve efficiency and reduce cost Slide 18 Q4/12Q1/13Q2/13Q3/13Q4/132013Q1/14Q2/14Total Cost taken People affected ,560 Q1/13Q2/13Q3/13Q4/132013Q1/14Q2/ Restructuring S&A Purchasing Total Restructuring, SEKm : Realized gross savings from total programme, SEKm : Full year gross saving Giving future gross savings, SEKm : vs 2012 vs 2013 Note: Run rate Q SEK 1,340 million vs 2012.

© SKF Group 15 July 2014 Operating profit bridge, Q Slide , , SEKm Q Q Volumes excl. Specialty Business Specialty Business Savings One-time items Currencies R&D, inflation etc. Price/mix

© SKF Group 15 July 2014 Operating profit bridge, half year 2014 Slide , , SEKm Q Q Volumes excl. Specialty Business Specialty Business Savings One-time items Currencies R&D, inflation etc. Price/mix

© SKF Group 15 July 2014 Net working capital as % of annual sales Slide 21 % Target: 27%

© SKF Group 15 July 2014 Return on capital employed Slide 22 % 14.6* * 15.1* One-time items * Excluding one-time items ROCE: Operating profit plus interest income, as a percentage of twelve months rolling average of total assets less the average of non-interest bearing liabilities.

© SKF Group 15 July 2014 Cash flow, after investments before financing Slide 23 SEKm Excl. acq. and div.:1)Q3 2012SEK 1,707 million 2)Q1 2013SEK -69 million 3)Q3 2013SEK 871 million 4)Q4 2013SEK 1,170 million Excl. EU payment5) Q2 2014SEK 1,423 million 4) 5)

© SKF Group 15 July 2014 Net debt Slide 24 SEKm AB SKF, dividend paid (SEKm) : 2012 Q22, Q22, Q22,530 Cash out from acquisitions (SEKm) : 2012 Q Q Q47,900 Net debt:Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives. EU payment (SEKm) : 2014 Q22,825

© SKF Group 15 July 2014 Debt structure, maturity years Slide 25 Available credit facilities: EUR 500 million 2019 SEK 3,000 million 2016 SEK 3,000 million 2017 No financial covenants nor material adverse change clause

© SKF Group 15 July 2014 July 2014: SKF demand outlook Q Slide 26 Demand compared to the third quarter 2013 The demand for SKF’s products and services is expected to be slightly higher for the Group and North America, higher for Asia, relatively unchanged for Europe and slightly lower for Latin America. It is expected to be higher for Strategic Industries and relatively unchanged for Regional Sales and Service and Automotive. Demand compared to the second quarter 2014 The demand for SKF’s products and services is expected to be relatively unchanged for the Group and Europe. It is expected to be slightly higher for North America and Asia and slightly lower for Latin America. For Strategic Industries it is expected to be slightly higher and for Regional Sales and Service and Automotive it is expected to be relatively unchanged. Manufacturing Manufacturing is expected to be slightly higher year over year and relatively unchanged compared to the second quarter.

© SKF Group 15 July 2014 SKF demand outlook Q3 2014, main regions Share of net sales 2013 Europe42% Asia Pacific24% North America24% Latin America7% Total Q vs Q / Slide 27 Sequential trend for Q3 2014

© SKF Group 15 July 2014 SKF demand outlook Q3 2014, main business areas Share of net sales 2013 Strategic Industries 29% Regional Sales and Service 39% Automotive27% Total Q vs Q /- + Slide 28 Sequential trend for Q3 2014

© SKF Group 15 July 2014 SKF sequential volume trend Q3 2014, Industries Slide 29 6%Aerospace 5%Energy 4%Railway 2%Two-wheelers and Electrical 29%Industrial distribution 14%Cars and light vehicles 13%Industrial, heavy, special and off-highway 11%Vehicle service market 11%Industrial, general 5%Trucks Share of net sales 2013

© SKF Group 15 July 2014 Guidance for the third quarter 2014* Slide 30 Tax level: around 30% Financial net for the third quarter: Around SEK -230 million Currency impact on operating profit versus 2013 Q3: SEK +50 million Full year: SEK -70 million Additions to PPE: Around SEK 1.6 billion for 2014 * Guidance is approximate and based on current assumptions and exchange rates.

© SKF Group 15 July 2014 SKF’s priorities Slide 31 Sustainable profitable growth Expand the platform concept Exploit the asset life cycle approach Develop new products and grow SKF BeyondZero portfolio Extend and grow second brands Acquisitions Investments & Innovation New and existing facilities Research and development IT systems and mobility Cost reduction Business Excellence Consolidation of manufacturing Optimization and productivity improvements Reduction in purchasing costs Capital efficiency Fixed capital Net working capital

© SKF Group 15 July 2014 Cautionary statement Slide 32 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 under the Administration Report; “Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis”.

© SKF Group 15 July 2014