SKF Group Tore Bertilsson, Executive Vice President and CFO September 2012

© SKF GroupSlide 1 Agenda SKF Group overview Strategic direction and initiatives Business update

© SKF GroupSlide 2 SKF - A truly global company Established: 1907 Sales 2011: SEK 66,216 million Employees 2011: 46,039 Production sites: around 130 in 32 countries SKF presence: in over 130 countries Distributors/dealers:15,000 locations Global certificates:ISO OHSAS certification

© SKF GroupSlide 3 Net sales 2011 Asia/Pacific 28% Latin America 8% North America 19% Middle East & Africa 1% Western Europe 37% Eastern Europe 4% Sweden 3% Previously published shares have been restated to reflect the new business structure from 2012.

© SKF GroupSlide 4 Net sales by customer segment 2011 Aerospace Railway Off-highway Trucks Two-wheeler and Electrical Industrial, general Cars and light vehicles Industrial, heavy and special Vehicle Service Market Industrial distribution Energy Previously published shares have been restated to reflect the new business structure from 2012.

© SKF GroupSlide 5 SKF platforms Managing and reducing friction/energy

© SKF GroupSlide 6 Long-term financial targets 27% Return on capital employed 8% Changes in sales in local currency 15% Operating margin, level

© SKF GroupSlide 7 SKF Group – operating margin development %

© SKF GroupSlide 8 How did we get there? Divesting and outsourcing component manufacturing, reducing fixed cost and invested capital Manufacturing footprint in best cost countries Reducing working capital Customized solutions, value added products, technology platforms Diversifying growth, faster growing segments and geographies Acquisitions supporting growth and profitability SKF today – more robust, more diverse

© SKF GroupSlide 9 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 GroupSlide 10 R&D – investments and main areas Investments % 2009Same % % Patents +30% % Main areas Environment Core technologies New products Strengthen R&D activities in fast growing regions Strengthen links with universities and high schools

© SKF GroupSlide 11 Examples of new products launched in 2012 SKF Nautilus range extensions Servo Actuator for industrial applications Next generation SNL, SE housings A hand-held, 18-volt, lithium-ion grease gun SKF Speed Sensor Unit Integrated monotube seal SKF Compact Wire Steering Bearing SKF Solar Hub SKF Thruster Monitoring SKF Bus Door Actuator

© SKF GroupSlide 12 Investing for the future Mysore, India Dalian, China Jinan, China Bengaluru, India

© SKF GroupSlide 13 Acquisition strategy for profitable growth Acquisitions are seen as one important driver for growth and value creation. Lincoln integration is going well so SKF is able to make additional larger acquisitions SKF has the financial means and acquisition project resources in place to continue to pursue relevant acquisitions. Increasing activity and opportunities in M&A market

© SKF GroupSlide 14 Acquisitions Identifying gaps and opportunities in all platforms Seals Bearings and units Lubrication systems Services Mechatronics Technologies / Products Geographies Segments SNFA (2006) S2M (2007) QPM (2008) Economos (2006) Macrotech (2006) Baker (2007) PMCI (2007) PB&A (2006) Monitek (2006) Safematic (2006) Vogel (2004) ALS (2007) Sommers (2005) ABBA (2007) Jaeger (2005) PEER (2008) GLO (2008) TCM (2003) Scandrive (2003) Cirval (2008) Lincoln Industrial (2010) GBC (2012) Focus on industrial and aftermarket business.

© SKF GroupSlide 15 Branding strategy – to address the market Second brands Strong cost focus Peer/General/Hyatt brands Application specific products Knowledge engineering Documented value Cost reduction Brand High Middle Low Capture mid market growth - lower cost manufacturing

© SKF GroupSlide 16 BeyondZero TM BeyondZero Customers: SKF BeyondZero portfolio Innovate and offer our customers new technologies, products and services with enhanced environmental performance characteristics. Suppliers Transportation SKF Manufacturing Reduce the negative environmental impact from our own operations and those of our suppliers. Scope 2Scope 1Scope 3

© SKF GroupSlide 17 BeyondZero portfolio – how it works DESIGNED FOR Total direct CO 2 savings Total revenue APPLIED FOR Total enabled CO 2 savings Total revenue Criteria Life cycle trade off’s Base line comparison CO 2 / environmental savings

© SKF GroupSlide 18 BeyondZero portfolio, examples SKF ConRo reduced CO 2 emissions with 1.5 tonne per unit and year. If SKF were to equip all new motors ranging from sizes 1-50 HP with its current SKF E2 bearing range, a yearly 290,000 tonnes of CO 2 emissions would be avoided. A light commercial vehicle with four SKF Low Weight Hub Bearing Units reduces CO 2 by 5.0 kg CO 2 per year.

© SKF GroupSlide 19 % One-time items * Excluding one-time items 14.7* Long-term target level: 15% 14.2* * Operating margin 12.3

© SKF GroupSlide 20 SKF demand outlook Q3 2012, regions Sequential trends for: Q Q 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.

© SKF GroupSlide 21 5% 28% 13% 12% 10% 4% 3% 13% 5% Energy Aerospace Industrial distribution Industrial, general Industrial, heavy, special and off-highway Vehicle service market Railway Two-wheelers and electrical Cars and light vehicles Trucks SKF sequential demand trend Q Share of net sales 2011* * Previously published shares have been restated to reflect the total Group business and customer delivery locations.

© SKF GroupSlide 22 Debt structure, maturity years EURm Credit facilities: EUR 500 million 2017 SEK 3,000 million 2017 No financial covenants nor material adverse change clause

© SKF GroupSlide 23 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

© SKF GroupSlide 24