1. 29 January 2009

2. The SKF Group Year-end results 2008 Tom Johnstone, President and CEO
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3. Summary Record sales and profit full-year 2008.
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.
29 January 2009

4. Fourth quarter 2008 2008 2007 Net sales 16,307 15,070 Operating profit
SEKm
2008
2007
Net sales
16,307
15,070
Operating profit
1,450
1,831
Operating margin
8.9%
12.1%
Profit before taxes
1,107
1,710
Net profit
819
1,105
Basic earnings per share, SEK
1.75
2.33
Cash flow after operating investments before financial items
-150
617
Cash flow after operating investments before financial items, excluding acquisitions 18
1,123
29 January 2009

5. Full year 2008 2008 2007 Net sales 63,361 58,559 Operating profit
SEKm
2008
2007
Net sales
63,361
58,559
Operating profit
7,710
7,539
Operating margin
12.2%
12.9%
Profit before taxes
6,868
7,138
Net profit
4,741
4,767
Basic earnings per share, SEK
10.14
10.09
Cash flow after operating investments before financial items 65
2,126
Cash flow after operating investments before financial items, excluding acquisitions
1,349
3,335
29 January 2009

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

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

8. Sales in local currencies (excl. structural changes)
% change y-o-y
2006
2007
2008
29 January 2009

9. Components in net sales
2006
2007
2008 Q1 Q2 Q3 Q4
6.0
2.5
3.3
8.8
7.9
6.9
9.0
6.3
4.9
6.2
2.7
-13.0
-4.9
-0.5
1.1
4.6
4.0
3.7
1.0
1.3
0.5
2.4
2.9
2.0
2.3
1.8
3.2
3.8
6.4
8.5
15.7
13.7
14.2
14.7
10.5
9.7
11.5
9.6
-2.1
8.0
-5.8
-5.6
-2.3
-1.9
-2.0
-1.2
-4.1
-0.9
10.3
12.0
5.0
4.3
9.9
8.1
11.9
12.8
7.4
8.7
8.2
Percent y-o-y
Volume
Structure
Price / Mix
Sales in local currency
Currency
Net sales
29 January 2009

10. Operating margin Long-term target level: 12% % 12.9 12.6 12.2 11.3*
* excluding income from the jointly controlled company Oy Ovako Ab
29 January 2009

11. Operating margin 2006 2007 2008 Long-term target level: 12% %
29 January 2009

12. Operating margin per division%
Service
Industrial
Automotive
2006
2007
2008
Excluding one-off items (eg. restructuring, impairments, capital gains)
29 January 2009

13. Industrial Division SEKm 2008 2007 Net sales 22,748 19,693
Sales incl. intra-Group sales
33,260
29,157
Operating profit
3,929
3,434
Operating margin
11.8%
Q4 2008
Net sales growth 23.1% 15.5%
organic growth 6.8% 10.2%
structure 2.3% 3.0%
currency effects 14.0% 2.3%
Acquisitions
QPM Aerospace’s metallic
rod business
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.
29 January 2009

14. Service Division SEKm 2008 2007 Net sales 21,529 19,339
Sales incl. intra-Group sales
23,670
21,136
Operating profit
3,444
2,860
Operating margin
14.6%
13.5%
Q4 2008
Net sales growth 11.3% 11.3%
organic growth 2.0% 10.9%
structure 0% 0.3%
currency effects 9.3% 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.
Acquisitions
Cirval S.A.
29 January 2009

15. Automotive Division SEKm 2008 2007 Net sales 18,727 19,449
Sales incl. intra-Group sales
23,215
23,703
Operating profit
627
1,135
Operating margin
2.7%
4.8%
Q4 2008
Net sales growth % -3.7%
organic growth % -3.8%
structure 0.2% -0.5%
currency effects 6.4% 0.6%
Acquisitions
GLO s.r.l
SKF Automotive Bearings Company Ltd.
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.
29 January 2009

16. 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 ,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: during Q during Q4
Reduction of registered employees: 500 during Q4 .
29 January 2009

17. 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.
29 January 2009

18. Inventories as % of annual sales
Long-term target level: 18% % x
excl. currency effects
2006
2007
2008
29 January 2009

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

20. Net debt (Short-term financial assets minus loans and post-employment benefits)
SEKm
AB SKF,
dividend paid (SEKm):
2006 Q2 1,821
2007 Q2 2,049
2008 Q2 2,277
Redemption (SEKm):
2007 Q2 4,554
2006
2007
2008
29 January 2009

21. Cash flow, after operating investments before financial items
SEKm
Cash out from
acquisitions (SEKm):
,129
2007 1,209
,284
Cash in from Ovako (SEKm):
2006 Q4 1,217
2007 Q2 46
2006
2007
2008
29 January 2009

22. SKF capital structure The AB SKF Board proposes the AGM to decide on:
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
29 January 2009

23. 2009 – 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
29 January 2009

24. Vehicle production outlook
Light vehicles
Q408 Estimated
Q109 Forecast
Western Europe
-28%
-27%
North America
-24%
-42%
Source: Global Insight 28 January 2009
Heavy vehicles
Q408 Estimated
Q109 Forecast
Western Europe:
-14%
-33%
North America
of which Class 8 8%
-2%
-28%
Source: JD Power, December 2008
29 January 2009

25. 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.
29 January 2009

26. Volume trends (based on current assumptions)
Net sales
2008
Europe
56%
North America
17%
Asia Pacific
19%
Latin America 5%
Total
Daily volume trends for:
Q Q1 2009
Outlook Q1
2009 vs 2008
--- --
29 January 2009

27. Expected demand by main segment – Q1 2009 (based on current assumptions)
Net sales 2008
13%
Cars 5%
Trucks
20%
Industrial OEM, General+Special 3%
Electrical and two-wheeler 9%
VSM
23%
Industrial distribution
12%
Industrial OEM, Heavy+Off-highway
Aerospace
Railway 6%
Energy
29 January 2009

28. Guidance for the first quarter 2009
Tax level: 31-32%
Financial net for first quarter: SEK -200 million
Exchange rates on operating profit versus 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
29 January 2009

29. Key focus areas ahead - 2009 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 January 2009

30. SKF Care Business Care Employee Care SKF Care Environmental Care
Operating margin
SKF Care
BeyondZeroTM
Environmental Care
Community Care
29 January 2009

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

32. 29 January 2009