0 29 January 2009

The SKF Group Year-end results 2008 Tom Johnstone, President and CEO

2 29 January 2009 Summary Record sales and profit full-year Weakening markets by the end of the year. Acquired: Cirval S.A., GLO s.r.I., PEER Bearing company, QPM Aerospace’s metallic rod business. Announced two new energy efficient roller bearing types. Signed a new contract in China with the world’s largest trailer axle manufacturer, Guangdong Fuwa Engineering Manufacturing Co. Ltd Announced investments for the first SKF factory in Russia and for expanding the capacity for manufacturing of large size bearings in China, Sweden and Germany. Distributed SEK 4,554 m to shareholders. Six Sigma, annualized savings SEK 462 m (up >50% from 2007) Included in Dow Jones Sustainability Indexes for the ninth year in succession.

3 29 January 2009 SEKm Net sales16,30715,070 Operating profit1,4501,831 Operating margin8.9%12.1% Profit before taxes1,1071,710 Net profit8191,105 Basic earnings per share, SEK Cash flow after operating investments before financial items Cash flow after operating investments before financial items, excluding acquisitions 181,123 Fourth quarter 2008

4 29 January 2009 SEKm Net sales63,36158,559 Operating profit7,7107,539 Operating margin12.2%12.9% Profit before taxes6,8687,138 Net profit4,7414,767 Basic earnings per share, SEK Cash flow after operating investments before financial items 652,126 Cash flow after operating investments before financial items, excluding acquisitions 1,3493,335 Full year 2008

5 29 January 2009 Growth development by geography Europe % NA % Asia % LA % Local currency 2008 vs 2007

6 29 January 2009 Growth in local currency % Y-o-Y Acquisitions/Divestments Organic growth 7.5* 13.2 * Excluding effect from Ovako: % Long-term target level: 6-8% per annum 7.1

7 29 January 2009 Sales in local currencies (excl. structural changes) % change y-o-y

8 29 January 2009 Components in net sales Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q Percent y-o-y Volume Structure Price / Mix Sales in local currency Currency Net sales

9 29 January 2009 Operating margin % *excluding income from the jointly controlled company Oy Ovako Ab * 12.2 Long-term target level: 12%

10 29 January 2009 Operating margin % Long-term target level: 12% 2008

11 29 January 2009 Operating margin per division Industrial Service Automotive % Excluding one-off items (eg. restructuring, impairments, capital gains)

12 29 January 2009 Industrial Division Acquisitions QPM Aerospace’s metallic rod business SEKm Net sales22,74819,693 Sales incl. intra-Group sales33,26029,157 Operating profit3,9293,434 Operating margin11.8% Q42008 Net sales growth 23.1%15.5% organic growth 6.8%10.2% structure 2.3%3.0% currency effects14.0% 2.3% Major investments New factory in Ahmedabad, India New factory in Tver, Russia Increase the manufacturing capacity in Dalian, China Investments in large size bearings in Sweden and Germany In Q4 2007, SEK 30 m in restructuring activities and other one-time items. In Q4 2008, SEK 80 m in restructuring activities and other one-time items.

13 29 January 2009 Service Division Acquisitions Cirval S.A. SEKm Net sales21,52919,339 Sales incl. intra-Group sales23,67021,136 Operating profit3,4442,860 Operating margin14.6%13.5% Q42008 Net sales growth 11.3%11.3% organic growth 2.0%10.9% structure 0%0.3% currency effects9.3% 0.1% New activities Established the first SKF Solution Factory in Shanghai. Launched the SKF Certified Rebuilder programme for electric motors in Europe and South Africa. Launched the Distributor Value Program to support SKF authorized distributors in documenting the value they bring to customers.

14 29 January 2009 Automotive Division Acquisitions GLO s.r.l SKF Automotive Bearings Company Ltd. SEKm Net sales18,72719,449 Sales incl. intra-Group sales23,21523,703 Operating profit6271,135 Operating margin2.7%4.8% Major investments Opened a new factory in China Established new technology centre in China and expanded centre in India. In Q4 2007, SEK 270 m in restructuring activities and other one-time items. In Q4 2008, SEK 250 m in restructuring activities and other one-time items. Q42008 Net sales growth -16.3%-3.7% organic growth -22.9%-3.8% structure 0.2%-0.5% currency effects6.4% 0.6%

15 29 January 2009 Activities to adapt to lower demand Announced in Q4 2008: Short-time working: 2,400 employees Reduction: 2,500 employees (whereof: 1,300 temporary and 1,200 registered) Restructuring and impairment costs of SEK 470 m, whereof SEK 340 m in Q Full-year benefit SEK 250 m in 2010 Implemented in 2008: Reduction of temporary workers: 200 during Q3 550 during Q4 Reduction of registered employees:500 during Q4.

16 29 January 2009 Currency effects on the balance sheet The currency effects on working capital and fixed assets were around 10% for the fourth quarter and 12% for the year. This has had an impact on ratios.

17 29 January 2009 Inventories as % of annual sales % Long-term target level: 18% 2008 x excl. currency effects

18 29 January 2009 Return on capital employed ROCE: Operating profit plus interest income, as a percentage of twelve months average of total assets less the average of non-interest bearing liabilities. % Long-term target level: 24%

19 29 January 2009 Net debt (Short-term financial assets minus loans and post-employment benefits) SEKm AB SKF, dividend paid (SEKm) : 2006 Q2 1, Q2 2, Q22,277 Redemption (SEKm) : 2007 Q2 4, Q22,

20 29 January 2009 Cash flow, after operating investments before financial items SEKm Cash out from acquisitions (SEKm) : , , ,284 Cash in from Ovako (SEKm) : 2006 Q4 1, Q

21 29 January 2009 SKF capital structure a dividend of SEK 3.50 per share a mandate to the Board to repurchase a maximum of 5% of the company's own shares The AB SKF Board proposes the AGM to decide on:

22 29 January – external environment Global, deep and very fast downturn in demand Financial markets are not stable yet Government incentives still to take effect Consumer and business confidence low Good demand continues in some areas Uncertain business environment - difficult to forecast

23 29 January 2009 Vehicle production outlook Light vehiclesQ408 EstimatedQ109 Forecast Western Europe-28%-27% North America-24%-42% Heavy vehiclesQ408 EstimatedQ109 Forecast Western Europe:-14%-33% North America of which Class 8 8% -2% -28% -33% Source: JD Power, December 2008 Source: Global Insight 28 January 2009

24 29 January 2009 January 2009: Outlook for the first quarter 2009 The demand for SKF products and services is expected to be significantly lower for the Group in total and for all regions. It is also expected to be significantly lower for the Automotive and Service Divisions and lower for the Industrial Division. The manufacturing level will be significantly lower to reflect both the new demand situation and to reduce inventory.

25 29 January 2009 Volume trends (based on current assumptions) Daily volume trends for: Q Q Net sales 2008 Europe 56% North America17% Asia Pacific 19% Latin America5% Total Outlook Q vs

26 29 January %Cars 5%Trucks 20%Industrial OEM, General+Special 3%Electrical and two-wheeler 9%VSM 23%Industrial distribution 12%Industrial OEM, Heavy+Off-highway 5%Aerospace 3%Railway 6%Energy Expected demand by main segment – Q (based on current assumptions) Net sales 2008

27 29 January 2009 Guidance for the first quarter 2009 Tax level: 31-32% Financial net for first quarter: SEK -200 million Exchange rates on operating profit versus 2008 Q1: SEK 200 million Full year: SEK 1 billion Additions to PPE: Around SEK 2 billion for 2009 Guidance is approximate and based on current assumptions and exchange rates

28 29 January 2009 Key focus areas ahead Profit and cash flow - maintain positive price/mix - drive operational efficiency and cost reduction - reduce working capital and investments Adjustment of manufacturing output to new demand levels - restructuring - short-time working Growing segments and geographies Strengthening the platform/segment approach Competence development SKF Care and Six Sigma as guiding lights

29 29 January 2009 SKF Care Employee Care Community Care Environmental Care Business Care BeyondZero TM SKF Care Operating margin

30 29 January 2009 SKF Group Vision To equip the world with SKF knowledge

31 29 January 2009