SKF Nine-month results 2014 Tom Johnstone, President and CEO 15 October 2014 11 April 2017

Alrik Danielson, new President and CEO from 1 January 2015 B.Sc in Business Administration and International Economics from the University of Gothenburg 1987-2005 Previous positions within SKF: Financial controller in Gothenburg President, Industrial Division in Spain and Portugal President, SKF do Brazil President, Industrial Division and several other managerial positions. 2005-2014 Höganäs AB, President and CEO

Examples of new business Doosan Heavy Industries and Construction, SKF Supergrip Bolts South Korea SKF Nautilus bearing A leading Chinese locomotive manufacturer Traction motor bearings HSD SpA, Italy Super precision bearings and engineering support A major Australian customer Maintenance contract in the agriculture industry Medical device manufacturer in California, Slewing ring bearings USA

Examples of new business Tesla Motors Bearing for the gearbox, e-motor and wheels Volvo Cars Wheel hub bearing units Scania Wheel bearing units and high pressure valve stem seals

Customer awards Supplier Performance Award – Snecma, Safran Group, France Best Supplier Award – Weg Electric Motor Manufacturing Co., Ltd, China Best Supplier Award – Shanghai Hanbell Precise Machinery Co. Ltd., China Excellent Engineering Development Award – Shanghai Automobile Gear Works (SAGW), China Fiat Qualitas Award – Fiat, Argentina Certificate of Appreciation for quality and delivery performance – Honda, India

Highlights New Kaydon factory at the SKF Campus in Cajamar, Brazil. New Global Technical Center in the greater Chicago area, US. For the 15th year in a row, one of the world’s most sustainable companies by the Dow Jones Sustainability World Index (DJSI). For the 14th consecutive year, a constituent of the FTSE4Good Index Series.

Examples of new products and solutions SKF Multilog Online System IMx-B Tapered roller bearing unit for passenger railway applications Compact tapered roller bearing unit for heavy freight SKF Mudblock cassette seals, MUD 11 SKF Machine Tool Observer MTx SKF Multilog On-line System IMx-M SKF Static Motor Analyzer Baker AWA-IV PuraBreeze 100

SKF Group – Q3 2014 Financial performance (SEKm) 2014 2013 Net sales 17,787 15,623 Operating profit 2,073 1,923 Operating margin, % 11.7 12.3 Operating margin excl. one-time items, % 11.8 12.9 Profit before tax 1,827 1,717 Basic earnings per share, SEK 3.01 2.47 Cash flow after investments before financing excl. EU payment 1,476 1,135 Cash flow after investments before financing Organic sales growth in local currency: SKF Group 3.3% Europe 0% Strategic Industries 9.1% North America 3% Regional Sales and Service 0.8% Asia 8% Automotive -0.5% Latin America Middle East and Africa 7% Key points Sales volumes up by 1.9% y-o-y. Manufacturing was relatively unchanged compared to last year.

SKF Group – Nine month 2014 Financial performance (SEKm) 2014 2013 Net sales 52,476 47,167 Operating profit 6,193 5,240 Operating margin, % 11.8 11.1 Operating margin excl. one-time items, % 12.2 Profit before tax 5,375 4,581 Basic earnings per share, SEK 8.27 6.57 Cash flow after investments before financing excl. EU payment 2,640 1,390 Cash flow after investments before financing -185 Organic sales growth in local currency: SKF Group 4.6% Europe 2% Strategic Industries 8.7% North America 3% Regional Sales and Service 1.7% Asia 11% Automotive 2.8% Latin America 1% Middle East and Africa 14% Key points Sales volumes up by 3.8% y-o-y. Manufacturing was slightly higher compared to last year.

Organic sales growth in local currency % change y-o-y 2012 2013 2014

Organic sales growth in local currency % y-o-y 4.5% -0.7% -2.5% Structure in 2012: 0.4% Structure in 2013: 2.5% Structure in 2014: 4.7%

Sales development by geography Organic growth in local currency Q3 2014 vs Q3 2013 Europe 0% North America 3% Asia/Pacific 8% Latin America 0% Middle East & Africa 7%

Sales development by geography Organic growth in local currency YTD 2014 vs YTD 2013 Europe 2% North America 3% Asia/Pacific 11% Latin America 1% Middle East & Africa 14%

Components in net sales 2012 2013 2014 Percent y-o-y Q1 Q2 Q3 Q4 Volume -0.8 -2.8 -5.0 -5.9 -8.7 -1.6 2.2 7.1 6.2 3.6 1.9 Structure -0.1 0.0 0.8 1.0 1.5 2.6 1.1 4.8 4.7 3.8 5.4 Price/mix 2.0 0.5 0.7 -0.6 -0.2 -0.4 1.3 Sales in local currency -3.7 -4.2 -6.5 0.4 3.1 11.7 10.5 8.4 8.6 Currency -2.7 -3.6 -4.0 -2.2 -2.1 5.3 Net sales 1.4 2.8 -6.4 -7.8 -10.5 -4.6 0.9 9.6 10.4 9.5 13.9

Operating profit as reported SEKm 2012 2013 2014

Operating profit excluding one-time items SEKm 2012 2013 2014

Operating margin One-time items * Excluding one-time items 12.0* 11.9* % 12.0* 11.9* 11.8 11.3 5.8

Operating margin per business area as reported % Regional Sales and Service Specialty Business Strategic Industries Automotive 2012 2013 2014

Operating margin per business area excl. one-time items % Regional Sales and Service Specialty Business Strategic Industries Automotive 2012 2013 2014

SKF’s programme to improve efficiency and reduce cost Restructuring, SEKm: Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Q2/14 Q3/14 Total Cost taken 200 250 190 50 490 100 20 810 People affected 530 410 320 130 860 170 30 1,590 Giving future gross savings, SEKm: Full year gross saving 150 100 80 40 220 5 475 Realized gross savings from total programme, SEKm: vs 2012 vs 2013 Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Q2/14 Q3/14 2014 Restructuring 15 35 75 200 70 50 10 130 S&A Purchasing 100 400 60 260 Total 165 185 225 800 150 110 390 Note: Run rate Q3 2014 SEK 1,340 million vs 2012.

Operating profit bridge, Q3 2014 SEKm +100 -432 +110 +65 +112 +165 2,073 +30 1,923 Q3 2013 Volumes excl. Specialty Business Price/mix Specialty Business Savings One-time items Currencies Other* Q3 2014 * R&D, S&A, IT, inflation etc.

Operating profit bridge, nine month 2014 SEKm +505 -120 -829 +390 +352 6,193 +225 +430 5,240 Q1-Q3 2013 Volumes excl. Specialty Business Price/mix Specialty Business Savings One-time items Currencies Other* Q1-Q3 2014 * R&D, S&A, IT, inflation etc.

Net working capital as % of annual sales Target: 27% % 2012 2013 2014

Return on capital employed One-time items * Excluding one-time items % 17.1* 15.1* 13.9* 16.2 8.5 7.5 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.

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

Net debt AB SKF, dividend paid (SEKm): 2012 Q2 2,504 2013 Q2 2,530 Cash out from major acquisitions (SEKm): 2012 Q3 829 2013 Q1 823 2013 Q4 7,900 EU payment (SEKm): 2014 Q2 2,825 2012 2013 2014 Net debt: Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives.

Debt structure, maturity years 850 500 500 200 110 100 100 Available credit facilities: EUR 500 million 2019 SEK 3,000 million 2016 EUR 150 million 2017 No financial covenants nor material adverse change clause

October 2014: SKF demand outlook Q4 2014 Demand compared to the fourth quarter 2013 The demand for SKF’s products and services are expected to be relatively unchanged for the Group and for Europe, slightly higher for Asia and North America and slightly lower for Latin America. It is expected to be slightly higher for Strategic Industries, relatively unchanged for Regional Sales and Service and slightly lower for Automotive. Demand compared to the third quarter 2014 The demand for SKF’s products and services are expected to be relatively unchanged for the Group and for Europe, slightly higher for Asia and North America and slightly lower for Latin America. It is expected to be relatively unchanged for Strategic Industries, slightly higher for Regional Sales and Service and slightly lower for Automotive. Manufacturing Manufacturing is expected to be slightly lower year over year and compared to the third quarter.

SKF demand outlook Q4 2014, main regions Share of net sales 2013 Europe 42% Asia Pacific 24% North America Latin America 7% Total Sequential trend for Q4 2014 Q4 2014 vs Q4 2013 +/- + -

SKF demand outlook Q4 2014, main business areas Share of net sales 2013 Strategic Industries 29% Regional Sales and Service 39% Automotive 27% Total Sequential trend for Q4 2014 Q4 2014 vs Q4 2013 + +/- -

SKF sequential volume trend Q4 2014, Industries Share of net sales 2013 29% Industrial distribution 6% Aerospace 13% Industrial, heavy, special and off-highway 11% Industrial, general 5% Energy 4% Railway 2% Two-wheelers and Electrical 14% Cars and light vehicles Vehicle service market Trucks

Guidance for the fourth quarter 2014* Tax level: < 30% Financial net: around SEK -220 million Currency impact on operating profit vs 2013 Q4: SEK +230 million Full year: SEK +110 million Additions to PPE: around SEK 1.7 billion for 2014 * Guidance is approximate and based on current assumptions and exchange rates.

SKF’s priorities 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 Capital efficiency Fixed capital Net working capital 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

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; “Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis”.