© SKF Group2 August, 2015Slide 0 Industrial Market, Strategic Industries Industrial Drives Business Unit

© SKF Group Speaker 25 min Rakesh Makhija President Strategic Industries 15 min Rutger Barrdahl Director Railway and Off-highway 15 min Ole K Jødahl Director Industrial Drives 5 min Key business message & Summary 15 minQ&A CMD 2013

© SKF Group Industrial Drives’ Industries Industrial Electrical Motors Fluid Machinery Material Handling With our driveline concept we are a solution provider for the total lifecycle! Industrial Transmission CMD 2013

© SKF Group Angular Contact Ball bearings (ACBB) Industrial Drives’ Product line responsibility Global responsibility to maintain the range and develop solutions for: Cylindrical Roller bearing (CRB) Spherical Plain Bearings (SPB) Deep Groove Ball bearing (DGBB) Self Aligning Ball Bearing (SABB) INSOCOAT®, Hybrid Bearings, PCU plus other Machinery specials CMD 2013

© SKF Group Industrial Drives Business Unit Mission: To be the preferred partner to our customers and the leading player in our industry, through Technology leadership Advanced solutions for demanding applications Expert knowledge in focused industries Value Leadership Sustainability & Energy efficiency Optimized designs Driveline efficiency Cost leadership Provide most cost efficient solutions Best margins in industry Combined with the Life Cycle solution, this makes us unique! CMD 2013

© SKF Group Industrial Drives’ Manufacturing sites Dalian Schweinfurt St Cyr Flowery Branch Steyr Nilai CMD 2013

© SKF Group Industrial Drives Business Unit Energy efficiency Environmental demands Cost reduction Application specific performance solutions Total asset life cycle approach Major market trends CMD 2013

© SKF Group Industrial Drives Business Unit New Market Offers and New Customer Offers Focus on growing markets & customers Increased industry focus – expert knowledge Driveline concept with all SKF platforms Cost leadership Footprint Application specific performance solutions Growth Drivers CMD 2013

© SKF Group Seeding Discs in Agriculture Pump bearings Final Drive in Excavators Pulley bearings in truck engines DRACBB ISO-Dimension Thin sectioned SRACBB Two optimised designs that enables cost efficient solutions delivering the right performance: Application specific performance solutions CMD 2013

© SKF Group World water Consumption is forecasted to increase by ~50% by 2020* Diminishing clean water resources requires more effective water treatment Waste Water Industry A strong trend is the aeration process in biological waste water treatment. Energy consumption and noise are two key improvement areas for waste water treatment. Magnetic Systems from SKF Permanent magnet motor with active magnetic bearings  Next generation of blower solutions % reduction in energy Zero contamination and significantly reduced noise Aeration basin, biological treatment process Waste water blower * BeyondZero Waste water treatment plant The Waste Water Industry - a large consumer of energy CMD 2013

© SKF Group A wastewater treatment facility in France had been operating with four 80kW lobe-type blowers with several issues including frequent breakdowns, high energy consumption, high noise levels and treatment process problems. After replacing with two variable speed centrifugal blowers featuring the SKF high-speed permanent magnet motor solution, the results were immediate and dramatic. Energy use reductions of 50% Significantly improving the treatment process. Noise levels fell from 110dBA to 70dBA Maintenance demands dropped considerably One-year energy savings of €54,000 / around 500,000 kWh One-year plant C02 emissions reduced by around 375 tonnes Aeration basin, biological treatment process in France Real-world success with Magnetic Bearings in Waste Water CMD 2013

© SKF Group2 August, 2015Slide 11

© SKF Group2 August, 2015Slide 12 Industrial drivelines Port container crane Rotating kiln in Cement plant Converter in Iron plant Rolling mill drive Sugar dryer Sugar cane crusher Cement plant Motor in mining application Conveyor drive

© SKF Group Industrial Driveline - OEM The OEM driveline concept: Enable the best choices already at the design table! Include the use of SKF engineering tools for analysis of static and dynamic components and full drivelines – select the optimized solutions Operational Deflection Shapes (ODS): An SKF tool to measure the asset deformation under different loading and speed conditions. CMD 2013

© SKF Group2 August, 2015Slide 14 CARB SKF seals specifically engineered to work with aggressive oils used in industrial gearboxes Ceramic roller bearing Ceramic ball bearing Speedy sleeve to avoid damages to the shaft and to provide ideal counterpart for the seal TRB, CRB, SRB The bearings here used and shown have been selected with the target of optimizing the full gearbox system: maximization of system performance and service life.

© SKF Group Alignment tools SKF has a large amount of solutions to make the shafts and application work in ideal conditions. Baker Instrument by SKF measure the motor circuits to detect failures before they occur Full condition monitoring system for the driveline. Analysis of vibration, acoustic emission and temperature. Oil circulating system perfectly match for the gearbox – including instrument to analyse the oil condition - All produce by SKF Driveline Service Industrial Drives Business Unit are developing a full driveline service concept for both OEM and end users where SKF platforms are offered to improve the driveline efficiency at our customers to offer most value for the investment! Industrial drivelines – end users SKF Stand alone vibration inspection system -MCI Gearbox refurbishment SKF offers the possibility to re-furbish and upgrade the complete gearbox. CMD 2013

© SKF Group Key business message - Industrial Drives Business Unit Manifesting ”Value Leader” position BeyondZero portfolio. Launch of application specific performance solutions Expanding the Driveline Service offering Making next steps in localization/footprint plan “Cost out – Cost leader” focus Short & Medium term Our position with market leaders Our commitment to our customers BeyondZero Portfolio Market presence 5 Platforms & Solution Factory concept Widest range & best service level Our knowledge and support in optimising value through the asset lifecycle SKF Competitive advantage CMD 2013

© SKF Group2 August, 2015Slide 17 THANK YOU