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SKF Investor Relations January 2013

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Presentation on theme: "SKF Investor Relations January 2013"— Presentation transcript:

1 SKF Investor Relations January 2013
The SKF Group SKF Investor Relations January 2013 20 September 2018

2 SKF - A truly global company
Established: 1907 Sales 2012: SEK 64,575 million Employees 2012: 46,775 Production sites: around 140 in 28 countries SKF presence: in over 130 countries Distributors/dealers: 15,000 locations Global certificates: ISO 14001 OHSAS certification Since 1907 and the invention and patent of the self aligning ball bearing SKF has made an astonishing journey. SKF went global very early and grew at a rapid rate. As early as 1920s, the company was well established in Europe, America, Australia, Asia and Africa. Today when people talk about the importance of the BRIC countries. SKF has been established there for a very long time, e.g Brazil and Russia 1914, China 1916 and India 1923. 20 September 2018 20 September 2018

3 Net sales by customer segment* 2012
Aerospace Railway Off-highway Trucks Two-wheelers and Electrical Industrial, general Cars and light trucks Industrial, heavy and special Vehicle Service Market Industrial distribution Energy 6% 4% 5% 12% 9% 10% 29% 2% * Previously published shares have been restated in February 2013 20 September 2018 20 September 2018

4 Net sales 2012, Geographical distribution*
Asia/Pacific Latin America North America Middle East & Africa Western Europe Eastern Europe Sweden * Previously published shares have been restated in February 2013 20 September 2018

5 (2002) (1998) SKF 2012 % of group total Net sales*
(48) (44) (53) Net sales* (47) (46) (53) Average number of employees Tangible asset (10) (12) (9) (13) (14) (8) (25) (14) (19) (26) (13) (18) (5) (14) (12) (3) (9) (3) (6) (5) (4) (5) (12) (15) (3) (9) (3) (4) (4) (3) (3) (2) (0) (2) (2) (0) North America Latin America Western Europe Sweden Eastern Europe Middle East and Africa Asia/Pacific 20 September 2018 20 September 2018

6 Operating margin % 20 September 2018 20 September 2018

7 Return on capital employed
% 20 September 2018 20 September 2018

8 Growth in local currencies
% 20 September 2018 20 September 2018

9 To equip the world with SKF knowledge SKF Group Vision
Throughout its 100-year history SKF has been a technology leader. SKF´s fundamental strength is its ability to develop technologies, products and services that create competitive advantages. The company does this by combining its knowledge across the SKF technology platforms and through innovation and development, creating new value propositions for SKF customers. A key thrust is the work directed to SKF sustainability, reducing energy losses for a cleaner, brighter environment. By partnering with SKF, customers get access to our worldwide bank of experience and our global network of top research laboratories and universities. This can take even best-in-class customers to higher levels of performance. 20 September 2018 20 September 2018

10 SKF BeyondZero SKF launched the BeyondZeroTM portfolio with products and solutions, which will both improve energy efficiency and reduce the environmental impact. SKF revised targets for its climate strategy and also partnered with the WWF in their Climate Savers Programme. SKF’s climate strategy targets: • Increase revenue from SKF BeyondZero portfolio from SEK 2.5 bn to SEK 10 bn by 2016 • Reduce total annual energy use by 5% below the 2006 level by 2016 • Reduce energy use per production output by 5% y-o-y from 2012 to 2016 • Reduce CO2 emissions per tonne-kilometre by 30% 2016 vs 2011 for transports managed by SKF Logistics Services • Major suppliers certified according to ISO by 2016 20 September 2018

11 21 SKF Solution Factories 2012
Opened Planned Tianjin Taiwan Shanghai Pune Istanbul Johannesburg Brasil “IXION” Colombia Moscow Houston Monterrey Mexico Edmonton Nordic (Gothenburg) UK Germany Italy France Perth Rumania Cleveland 21 SKF Solution Factories 2012 20 September 2018 20 September 2018

12 SKF Solution Factory Capabilities Segments & Application Knowledge
Platforms & Technology Competence SKF Solution Factory Capabilities Sealing Solutions Mechanical Services Lubrication Solutions Bearing Service Workshop Condition Monitoring Services Remote Monitoring Center MaPro/CoMo Product Repair A & MC Training Center 20 September 2018 20 September 2018

13 Slab continuous caster – metal industry
Telescopic actuators for mould adjustment SKF ConRo Compact roll line units SKF ConRo Low roll line units SKF ConRo Top roll line units SKF DryLube Bearings and SNL Housings for roll out table SKF sealed self-aligning bearing system (CARB and spherical roller bearings) and centralized lubrication system for roll lines SKF Caster Analyst System for roll lines 20 September 2018 20 September 2018

14 Wheel-loader – Construction
Chassis lubrication Centralized lubrication systems Central gear Hybrid pinion units Motor hood Electromechanical actuators Wheel end • Integrated smart wheel bearing units with sensors • SKF Mudblock cassette seals 20 September 2018

15 Wind turbine - Energy New CRB-design with extra-high carrying capacity
for wind-gearboxes. New pitch bearing design with improved corrosion protection SKF WindCon 3.0/Webcon Intranet supervised condition monitoring DRTRB-unit SKF Nautilus with segmented cage for minimized friction Automatic centralized lubrication kits for reduced maintenance cost XL Hybrid bearings with ceramic balls for superior insulation 20 September 2018 20 September 2018

16 SKF’s environmentally positive customer solutions
SKF’s solutions which realize significant environmental benefits Designed for environment Applied for environment Up to 15% better fuel economy of the car Stop-start system E2 - 30% less energy compared to a standard bearing SKF sensor bearing A solution that is primarily designed to improve environmental performance by itself A solution that enables improved environmental performance in a specific application Not sure how you feel about this Tom, but I would like us to start talking externally in the language of the Eco Portfolio, even if we are not yet ready to quantify sales or CO2 in these terms. 20 September 2018 20 September 2018 15

17 SKF energy efficient (E2) bearings
China Conveyors used in mining industry. 130,000 E2 bearing India Sangam Group Peru Industria Textil Piura 60,000 E2 deep groove ball bearing Indonesia Leuwijaya Textile 30,000 E2 bearing potential 325,000 for 3 different customers The China case is new – in 2010 we gained significant new business for E2 DGBB used in long conveyor belts at a number of mines and mineral processing plants across China. These use around 6,000 DGBB per KM, and of course the cumulative bearing friction is very significant. We have just received orders for around 130,000 pcs, and these will save around 4000 tonnes of CO2 in a five year period (compared to the SKF E2 reference). 20 September 2018 20 September 2018 16

18 What is SKF knowledge? Page 17
The three dimensions of knowledge engineering: The cultural/geographical dimension –understanding of cultures and regions where we live and work SKF is a global company with a local presence. We intimately understand the demands of our customers and their customers. Wherever they are. Our local expertise is supported by global industry specialists who can put those needs in perspective and draw upon successes in similar situations around the world. They in turn are backed by a worldwide manufacturing footprint and a fine-meshed service and support network to put our solutions to work. The customer dimension- industries and segments The number of SKF customers is about two million. Over the years, SKF has progressively organized itself into application areas that are now centred around nearly 40 specialized customer industries. The competence dimension – our technical platform SKF’s specialist teams who are competent in areas ranging from bearings and units to seals, mechatronics, services and lubrication, work closely together to provide advanced integrated solutions. Since SKF began operating the Group´s efforts in the area of research and development have resulted in numerous innovations that have created new standards and new products and solutions in the bearing industry. In 2007, the number of first filings of patent applications was 186. Through our knowledge, SKF can help customers improve their effectiveness, making them more successful and profitable. By combining our technical knowledge with the extensive experience we have from many specialized customer industries together with the understanding for local customer demands we can help customers overcome their specific challenges. Altogether we call this SKF Knowledge. Slide 17 20 September 2018 20 September, 2018 20 September 2018 20 September, 2018

19 SKF technology platforms
Page 18 SKF technology platforms Bearings and units SKF has a broad range of bearing types produced globally. This include high-quality, high-performance, low-friction, standard and customized solutions to critical and standard applications. Units are product combinations integrated into solutions with unique performance, used in specific applications requiring a compact design, combined performance and light weight. Pictures upper left; Bearings Housings Engineering products Y-units Pictures from bottom left; Engineered products Hub unit (can be found on cars or forklifts) Sensorized bearings Slide 18 20 September 2018 20 September, 2018 20 September 2018 20 September, 2018

20 SKF technology platforms
Page 19 SKF technology platforms Seals SKF develops and produces sealing solutions for the automotive and industrial markets, as well as seals integrated into bearings. SKF provides value added sealing solutions because of its excellent technical and application knowledge across the closely related platforms of seals, bearings, lubrication, mechatronics and service, which is leveraged in addressing customer needs ." Pictures from upper left; Sensorized engine crankshaft seal with integrated retainer assembly Shock absorber seal, Speedi Sleeve A repair sleeve for worn shafts Pictures from bottom left; Latest generation engine valve stem seal capable of handling pressure Latest generation Metric Rubber OD Seal available in a comprehensive size range from stock Heavy Duty large diameter seal used e.g in wind, metals and mining applications Sample of different types of Hydraulic Seals Slide 19 20 September 2018 20 September, 2018 20 September 2018 20 September, 2018

21 SKF technology platforms
Page 20 SKF technology platforms Mechatronics Within mechatronics SKF is combining its strong mechanical experience and electronic technology. This covers systems for precision multi-axis positioning, intelligent monitoring and by-wire applications, as well as components such as ball and roller screws, actuators, rail guides and sensor modules. A number of mechanical and electronic products are combined into modules and sub-systems addressing unique needs where SKF has specialist industrial-specific expertise. Pictures from left; Linear motion assortment High efficiency screws and guides, Electromechanical actuators Magnetic bearing system and one sensorized bearing, Aeronautical throttle control + Electromechanical Parking Brake Slide 20 20 September 2018 20 September, 2018 20 September 2018 20 September, 2018

22 SKF technology platforms
Page 21 SKF technology platforms Lubrication systems SKF offers products, solutions and vast support within areas such as industrial lubricants, lubrication consultancy, lubricator equipment, lubrication assessment, lubricant analysis, lubricant recommendations and automatic lubrication systems. Around 36% of premature bearing failures are caused by poor or inadequate lubrication. We help businesses to prevent these costly failures. We deliver the right lubricant, in the right amount, at the right time, with the right lubrication system to the right lubrication point. We are a global partner for lubrication systems and tribology knowledge, the combination of friction, wear and lubrication sciences. We provide integrated lubrication solutions with leading technologies, where and when our customers need them and across all industry segments and applications. Images from left; . Centralized lubrication systems - grease systems Lubricants [SKF bearing grease] - Manual lubricators [SKF grease gun] Centralized lubrication systems - Minimal quantity lubrication [MQL] systems Slide 21 20 September 2018 20 September, 2018 20 September 2018 20 September, 2018

23 SKF technology platforms
Page 22 SKF technology platforms Services The Service platform delivers value throughout the entire life cycle of an asset. Engineering consultancy and engineering services in the design phase, maintenance and logistics services in the operations stage and in the final stage upgrading, refurbishment, bearing dismounting and mounting, alignment, balancing and post-maintenance testing. SKF also offers a wide spectrum of training for customers, on and off site, around the globe. Images from upper left: Bearing remanufacturing services SKF Multilog On-line System IMx-T Asset Efficiency Optimisation process Mechanical Maintenance Services Asset Management Services Images from bottom left: Suite - integrated software for on-line, portable, and operator driven monitoring solutions Portable monitoring solutions. This also extends to cover Maintenance Products. SKF Wireless Monitoring System V/T Slide 22 20 September 2018 20 September, 2018 20 September 2018 20 September, 2018

24 Acquisition 2003-2012 Identifying gaps and opportunities in all platforms
Bearings and units Seals Services Lubrication systems Mechatronics Products Technologies Geographies Segments SNFA (2006) Economos (2006) Baker (2007) Safematic (2006) ABBA (2007) GLO (2008) Macrotech (2006) Macrotech (2009) Jaeger (2005) S2M (2007) Vogel (2004) Lincoln Industrial (2010) QPM (2008) PMCI (2007) ALS (2007) TCM (2003) Scandrive (2003) PB&A (2006) Sommers (2005) Monitek (2006) Cirval (2008) Peer (2008) GBC (2012) 20 September 2018 20 September 2018

25 Tom Johnstone, President and CEO
SKF Year-end results 2012 Tom Johnstone, President and CEO 20 September 2018

26 Summary of the quarter Weaker sales in the quarter
- lower overall demand - inventory destocking in the market Impact on the operating margin due to significantly lower manufacturing Continued reduction on inventories Strong cash flow Accelerated and expanded activities to reduce costs by SEK 3 billion by the end of 2015 and strengthen growth Acquisition of Blohm + Voss Industries 20 September 2018

27 Programme to improve efficiency, reduce cost and strengthen profitable growth
Main activities: consolidation of production between sites transfer of production from West Europe to serve faster growing markets with more local production optimization and productivity improvements in the manufacturing and demand chain processes consolidation of and efficiency improvements in administration and support functions reduction in purchasing cost mainly through standardization and rationalization of the supplier base. Reducing annual costs by SEK 3 billion by the end of 2015 Total costs for the programme SEK 1.5 billion for the years 2012 to 2015 2,500 people impacted, early retirement and other voluntary and agreed reductions 20 September 2018

28 Acquisitions in the last 12 months
General Bearing Cooperation (GBC) Acquired in August 2012 Net sales around USD 155 million Employees around 1,380 Customers OEM and end-user in the truck, trailer, automotive and industrial transportation markets Headquarter North America Factories 3 in China Manufacturing ball bearings, tapered roller bearings and precision roller bearings Blohm + Voss Industries (BVI) Transaction is subject to relevant regulatory approvals Net sales around EUR 100 million Employees around 400 Headquarter Germany Manufacturing premium quality equipment for critical marine applications, including shaft components (seals and bearings), stabilizers, and oily water separators 20 September 2018

29 BVI strengthening SKF’s position as a marine specialist
Strategic fit with SKF Marine growth strategy Complementary product portfolio Secure the leadership with propulsion system OEMs Widen the scope of supply for the application life-cycle Today, SKF sales to the marine industry is around SEK 1.5 billion. Main applications are propulsion systems, including thrusters, pods and gearboxes. 20 September 2018 20 September 2018

30 Some examples of new businesses in 2012
Industrial new generation Nautilus bearing to Siemens main shaft solutions to Vestas V MW turbine axle boxes and wheel set bearing units to Siemens Rail Systems SKF ConRo Compacts to a major metal industry customer third strategic partnership agreement with Baosteel Group Corporation maintenance services to LKAB integrated maintenance solutions to Fibria two custom-designed SKF spherical roller bearings, 8.8 tonnes each, for Caesars High Roller observation wheel in Las Vegas Automotive SKF Bus Door Actuator to Volvo Buses rear wheel bearing units and front suspension bearing units to Volvo Car Corporation wheel bearing units and clutch bearings to Audi bearing and units to Scania for wheels and transmissions bonded piston seals to Mazda Motor Corporation 20 September 2018

31 Some highlights from 2012 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 New facilities - Railway test centre in Tver, Russia - Five new SKF Solution Factory: USA, Romania, Italy, Australia and the Netherlands Partnership With Protean Electric for supplying products to Protean’s in-wheel electric motors for electric vehicles and hybrid cars. Documented delivered value SKF provided SEK 4.1 billion in verified savings for customers. SKF Distributor College awarded its 170,000th certificate 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 20 September 2018

32 Some examples of new products in 2012
New temperature monitoring system for railway SKF Compact Wire Steering Bearing SKF Nautilus range extensions A hand-held, 18-volt, lithium-ion grease gun SKF Low Friction Hub Bearing Unit Shaft sealing solutions SKF Speed Sensor Unit SKF Machine Condition Indicator SKF ChainLube oil projection system SKF Bus Door Actuator SKF Solar Hub 20 September 2018

33 R&D – main areas and investments in 2012
Environment Core technologies New products Strengthen R&D activities in fast growing regions Strengthen links with universities and high schools +10% 2.5% of sales 421 First filing patent application +30% 20 September 2018 20 September 2018 32

34 Launch of new climate targets
SKF launched the SKF BeyondZero portfolio with products and solutions, which will both improve energy efficiency and reduce the environmental impact. SKF revised targets for its climate strategy and also partnered with the WWF in their Climate Savers Programme. Growth target: SEK 2.5 billion to SEK 10 billion by 2016 20 September 2018

35 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 20 September 2018 20 September 2018

36 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 20 September 2018 20 September 2018

37 Financial performance 2012 2011
SKF Group – 2012 Financial performance Net sales, SEKm 64,575 66,216 Operating profit, SEKm 7,333 9,612 Operating margin, % Profit before tax, SEKm ,511 8,932 Cash flow, SEKm 3,555 3,848 Organic sales growth in local currency: SKF Group: % Industrial market, Strategic Industries: % Regional Sales and Service: -1.8% Automotive: -3.4% Key points Sales volumes down by -3.9% y-o-y Manufacturing significantly lower y-o-y Inventories down to 19.9% of sales Europe: -4.7% North America: 6.8% Asia: -9.5% Latin America: 11.3% 20 September 2018 20 September 2018

38 Organic sales growth in local currency
% change y-o-y 2010 2011 2012 20 September 2018 20 September 2018

39 Growth development by geography Organic growth in local currency Q4 2012 vs Q4 2011
Europe -7% North America 2% Asia/Pacific -11% Latin America 9% Middle East & Africa -9% 20 September 2018

40 Growth development by geography Organic growth in local currency 2012 vs 2011
Europe -5% North America 7% Asia/Pacific -10% Latin America 11% Middle East & Africa -2% 20 September 2018

41 Components in net sales
2010 2011 2012 Q1 Q2 Q3 Q4 5.3 16.6 19.0 16.3 20.1 12.6 6.2 0.0 -0.8 -2.8 -5.0 -5.9 5.0 4.4 5.1 4.8 -0.1 0.8 1.0 -0.3 -0.5 0.3 0.9 1.3 1.6 2.0 2.8 1.9 0.5 0.7 16.1 19.3 17.2 26.4 18.6 13.3 7.6 -3.7 -4.2 -7.7 -5.2 -3.2 -6.2 -10.8 -12.2 -6.3 -2.1 0.4 3.6 -2.7 -3.6 10.9 11.0 15.6 6.4 7.0 5.5 1.4 -6.4 -7.8 Percent y-o-y Volume Structure Price/mix Sales in local currency Currency Net sales 20 September 2018 20 September 2018

42 Growth in local currency, including structure
% y-o-y 16.3% 14.2% -2.1% Structure in 2011: 4.8% Structure in 2012: 0.4% 20 September 2018 20 September 2018

43 Operating profit SEKm 2010 2011 2012 One-time items 20 September 2018

44 Operating margin 2010 2011 2012 % One-time items 20 September 2018

45 Operating margin 14.7* 14.2* 14.5 12.0* 13.8 11.4 % One-time items
* Excluding one-time items 20 September 2018 20 September 2018

46 Operating margin per business area
% Regional Sales and Service Strategic Industries Automotive 2010 2011 2012 Excluding one-off items (eg. restructuring, impairments, capital gains) 20 September 2018 20 September 2018

47 Inventories as % of annual sales
2010 2011 2012 20 September 2018 20 September 2018

48 Return on capital employed
% 24.0 23.6 16.2 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. 20 September 2018 20 September 2018

49 Cash flow, after investments before financing
SEKm ** * 2010 2011 2012 * SEK 798 million, excluding SEK 6,799 million for the acquisition of Lincoln. ** SEK 1,707 million, excluding acquisitions and divestments. 20 September 2018 20 September 2018

50 Net debt 2010 2011 2012 AB SKF, dividend paid (SEKm): 2010 Q2 1,594
Net debt: Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives. 20 September 2018 20 September 2018

51 Debt structure on 31 December, maturity years
Available credit facilities: EUR 500 million SEK 3,000 million 2017 No financial covenants nor material adverse change clause EURm 500 500 265* 110 100** 100 100 To adjust the debt structure: * Redemption of bonds EUR 131 million ** Early repayment of loans EUR 30 million 20 September 2018

52 Fourth quarter 2012 2012 2011 Net sales 14,984 16,257 Operating profit
SEKm 2012 2011 Net sales 14,984 16,257 Operating profit 1,227 2,006 Operating margin, % 8.2 12.3 Profit before taxes 995 1,823 Net profit 1,011 1,205 Basic earnings per share, SEK 2.16 2.57 Cash flow, after investments before financing 1,076 853 20 September 2018 20 September 2018

53 Full year 2012 2012 2011 Net sales 64,575 66,216 Operating profit
SEKm 2012 2011 Net sales 64,575 66,216 Operating profit 7,333 9,612 Operating margin, % 11.4 14.5 Profit before taxes 6,511 8,932 Net profit 4,878 6,224 Basic earnings per share, SEK 10.37 13.29 Cash flow, after investments before financing 3,555 3,848 20 September 2018 20 September 2018

54 January 2013: SKF demand outlook Q1 2013
Demand compared to the first quarter 2012 The demand for SKF’s products and services is expected to be lower for the Group. For Europe it is expected to be significantly lower, for Asia slightly lower and for North America and Latin America relatively unchanged. The demand is expected to be lower for Industrial Market, Strategic Industries and SKF Automotive, for Industrial Market, Regional, Sales and Services it is expected to be slightly lower. Demand compared to the fourth quarter 2012 The demand for SKF’s products and services is expected to be relatively unchanged for the Group, for the business areas and for the regions. Manufacturing Manufacturing is expected to be lower year over year and higher compared to fourth quarter. 20 September 2018 20 September 2018

55 SKF demand outlook Q1 2013, regions (based on current assumptions)
Share of net sales* 2012 Europe 43% Asia Pacific 24% North America 22% Latin America 8% Total Sequential trend for Q1 2013 Q1 2013 vs Q1 2012 --- - = -- * Previously published shares have been restated in February 2013. 20 September 2018 20 September 2018

56 SKF demand outlook Q1 2013, business areas (based on current assumptions
Share of net sales 2012 Strategic Industries 31% Regional Sales and Service 39% Automotive 27% Total Sequential trend for Q1 2013 Q1 2013 vs Q1 2012 -- - 20 September 2018 20 September 2018

57 SKF sequential volume trend Q1 2013, main segments (based on current assumptions)
Share of net sales 2012* 6% 2% 29% 13% 12% 10% 4% 5% Aerospace Two-wheelers and Electrical Industrial distribution Industrial, heavy, special and off-highway Cars and light vehicles Industrial, general Vehicle service market Energy Railway Trucks * Previously published shares have been restated in February 2013. 20 September 2018 20 September 2018

58 Guidance for the first quarter 2013
Tax level: around 30% Financial net for the first quarter: Around SEK -200 million Exchange rates on operating profit versus Q1: SEK -50 million Full year: SEK -250 million Additions to PPE: Around SEK 1.7 billion for 2013 Guidance is approximate and based on current assumptions and exchange rates 20 September 2018 20 September 2018

59 Dividend proposal AB SKF’s Board proposes an unchanged dividend of SEK 5.50 per share to the Annual General Meeting 20 September 2018 20 September 2018

60 New IT systems Primarily for Sales/customer relationship, Purchasing, Demand chain and Finance New common IT infrastructure for all five technology platforms To implement common, best practice processes across the SKF Group globally, enabling business efficiency, speed and growth Will be implemented over a number of years with initial roll-out in 2014 20 September 2018

61 Key focus areas 2013 Managing the uncertain and different demand environment - Profit and cash flow Initiatives and actions to support long-term financial targets New factories in Mysore and Bengaluru in India - New warehouse in Shanghai, China - SKF Campus in Shanghai, China, including: ‣ New factory for automotive ‣ Global Technical Centre China ‣ SKF Solution Factory ‣ SKF College - Integration of new acquisitions, GBC and BVI - Cost reduction and efficiency programme - New IT systems Business Excellence and competence development One SKF and SKF Care as guiding lights 20 September 2018 20 September 2018

62 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”. 20 September 2018 20 September 2018

63 Welcome to the IR website – www.skf.com > Investors
Investor Relations function: Head: Marita Björk Tel: Mobile: Investor Relations: Anna Alte Tel: Mobile: Event coordinator and assistant: Helena Karlsson Tel: Mobile: 20 September 2018 20 September 2018

64 20 September 2018 20 September 2018


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