SKF Nine-month results 2012 Tom Johnstone, President and CEO 17 October 2012

© SKF Group17 October 2012Slide 1 Strong performance in a challenging market Weaker sales during the quarter, impacted by overall economy Significantly lower manufacturing and inventories reduced Good operating margin Strong cash flow Further investments to support long-term growth and profitability

© SKF Group17 October 2012Slide 2 Acquisition and divestments completed - acquisition of General Bearing Corporation (GBC) - divestment of the SKF distributor businesses in Australia and New Zealand New businesses - magnetic bearings to two new major gas projects in Australia - five-year contract with LKAB for maintenance services - third strategic partnership agreement with Baosteel Group Corporation - SKF Bus Door Actuator to Volvo Buses - SKF’s bonded piston seals to Mazda Motor Corporation Three new SKF Solution Factories - USA, Romania and Italy SKF Distributor College - awarded its 160,000th certificate Highlights Q3 2012

© SKF Group17 October 2012Slide 3 Highlights Q SKF celebrated 100 years of business in China - inaugurated a new bearing and truck hub unit factory in Jinan - broke ground on a new regional distribution centre in Shanghai - announced the establishment of a new SKF Campus in Jiading, Shanghai, containing a new factory for automotive and the Global Technical Centre China, SKF Solution Factory and SKF College Debt structure - new eurobond of 500m with maturity revolving credit facility of EUR 500m extended to 2017 Dow Jones Sustainability Indexes and FTSE4Good - member of DJSI indexes for the 13th successive year - included for the 12th successive year in the FTSE4Good Index Series

© SKF Group17 October 2012Slide 4 New products Q SKF ChainLube oil projection system for food processing New low friction bearing seal for railway New temperature monitoring system for railway Self powered wireless sensor for railway New range of freight bearings, tapered roller bearing units Device for monitoring freight car mileage and maintenance history

© SKF Group17 October 2012Slide 5 SKF Group – Q Financial performance Q3 2012Q Net sales, SEKm15,48616,545 Operating profit, SEKm1,9132,479 Operating margin, % Profit before tax, SEKm 1,7342,345 Cash flow, SEKm 1,0971,323 Organic sales growth in local currency: SKF Group: -4.5% Industrial market, Strategic Industries: -5.6% Regional Sales and Service:-4.7% Automotive:-3.5% Key points Sales volumes down by 5.0% y-o-y Manufacturing significantly lower y-o-y Inventories down to 20% of sales Europe: -7% North America: +5% Asia: -11% Latin America: +8%

© SKF Group17 October 2012Slide 6 Organic sales growth in local currency % change y-o-y

© SKF Group17 October 2012Slide 7 Europe -7% Asia/Pacific -11% Latin America 8% Middle East & Africa -4% North America 5% Growth development by geography Organic growth in local currency Q vs Q3 2011

© SKF Group17 October 2012Slide 8 Europe -4% Asia/Pacific -9% Latin America 12% Middle East & Africa 0% North America 8% Growth development by geography Organic growth in local currency YTD 2012 vs YTD 2011

© SKF Group17 October 2012Slide 9 Components in net sales Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q Percent y-o-y Volume Structure Price/mix Sales in local currency Currency Net sales

© SKF Group17 October 2012Slide 10 Growth in local currency, including structure % y-o-y Structure in 2011: 4.8% Structure in 2012: 0.2% 14.2% 16.3% -1.4%

© SKF Group17 October 2012Slide 11 Operating profit SEKm 2010 One-time items

© SKF Group17 October 2012Slide 12 % 2010 One-time items Operating margin

© SKF Group17 October 2012Slide 13 % One-time items * Excluding one-time items 14.7* 14.2* * Operating margin 12.3

© SKF Group17 October 2012Slide 14 Operating margin per business area Strategic Industries Regional Sales and Service Automotive % Excluding one-off items (eg. restructuring, impairments, capital gains)

© SKF Group17 October 2012Slide 15 SEKm Net sales15,48616,545 Operating profit1,9132,479 Operating margin, % Profit before taxes1,7342,345 Net profit1,2661,656 Basic earnings per share, SEK Cash flow, after investments before financing 1,0971,323 Third quarter 2012

© SKF Group17 October 2012Slide 16 SEKm Net sales49,59149,959 Operating profit6,1067,606 Operating margin, % Profit before taxes5,5167,109 Net profit3,8675,019 Basic earnings per share, SEK Cash flow, after investments before financing 2,4792,995 Nine month 2012

© SKF Group17 October 2012Slide 17 Inventories as % of annual sales %

© SKF Group17 October 2012Slide 18 Return on capital employed 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 Group17 October 2012Slide 19 Cash flow, after investments before financing SEKm *SEK 798 million, excluding SEK 6,799 million for the acquisition of Lincoln. **SEK 1,707 million, excluding acquisitions and divestments. * **

© SKF Group17 October 2012Slide 20 Net debt SEKm AB SKF, dividend paid (SEKm) : 2010 Q21, Q22, Q22, Net debt:Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives.

© SKF Group17 October 2012Slide 21 EURm Available credit facilities: EUR 500 million 2017 SEK 3,000 million 2017 No financial covenants nor material adverse change clause Debt structure on 30 September, maturity years

© SKF Group17 October 2012Slide 22 October 2012: SKF demand outlook Q Demand compared to the fourth quarter last year The demand for SKF ’ s products and services is expected to be lower for the Group and for Europe. For Asia it is expected to be slightly lower and for North America and Latin America relatively unchanged. The demand is expected to be lower for Industrial Strategic Industries and Industrial Regional Sales and Service and relatively unchanged for Automotive. Demand compared to the third quarter 2012 The demand for SKF ’ s products and services is expected to be slightly lower for the Group, for all the business areas and for Europe, Asia and North America. For Latin America demand is expected to be relatively unchanged. Manufacturing Manufacturing is expected to be lower year on year and slightly lower compared to third quarter.

© SKF Group17 October 2012Slide 23 SKF demand outlook Q4 2012, regions (based on current assumptions) Share of net sales 2011* Europe44% Asia Pacific28% North America19% Latin America8% Total Q vs Q /- -- * Previously published shares have been restated to reflect the total Group business and customer delivery locations. Sequential trend for Q4 2012

© SKF Group17 October 2012Slide 24 Sequential trend for Q Share of net sales 2011 Strategic Industries 31% Regional Sales and Service 39% Automotive27% Total Q vs Q /- -- SKF demand outlook Q4 2012, business areas (based on current assumptions)

© SKF Group17 October 2012Slide 25 5% 13% 4% 28% 13% 12% 10% 5% 3% Aerospace Cars and light vehicles Railway Industrial distribution Industrial, general Industrial, heavy, special and off-highway Vehicle service market Energy Trucks Two-wheelers and electrical Share of net sales 2011* * Previously published shares have been restated to reflect the total Group business and customer delivery locations. SKF sequential volume trend Q4 2012, main segments (based on current assumptions)

© SKF Group17 October 2012Slide 26 Guidance for the fourth quarter 2012 Tax level: around 30% Financial net for the fourth quarter: Around SEK 200 million Exchange rates on operating profit versus 2011 Q4: SEK -50 million Full year: SEK 200 million Additions to PPE: Around SEK 2.0 billion for 2012 Guidance is approximate and based on current assumptions and exchange rates

© SKF Group17 October 2012Slide 27 Key focus areas ahead 2012 Managing the uncertain and different demand environment - regions and segments Profit and cash flow - inventory management Initiatives and actions to support long-term financial targets Continue the integration of Lincoln Business Excellence and competence development Implement the new organization for the Industrial market One SKF and SKF Care as guiding lights

© SKF Group17 October 2012Slide 28 Long-term financial targets 27% Return on capital employed 8% Annual sales growth in local currencies 15% Operating margin, level

© SKF Group17 October 2012Slide 29 Accelerate profitable growth - intensify the platform and industry approach - launch more new offerings – green and BZ portfolio - strengthen the service business - focus on faster growing regions/ industries - develop other brands Reduce cost and eliminate waste - Business Excellence throughout the Group - BCC manufcaturing and sourcing - integrated cost reduction activities (ICR) Invest in growth - Sales and engineering resources - Factories in growth markets - Solution factories - R&D - Acquisitions - New IT systems Main initiatives going forward

© SKF Group17 October 2012Slide 30 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 under the Administration Report; “ Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis ”.

© SKF Group17 October 2012Slide 31