1. 20 April 2010

2. First-quarter results 2010 Tom Johnstone, President and CEO
The SKF Group
First-quarter results 2010
Tom Johnstone, President and CEO

3. Key points, Q1 report Strong operating profit and margin
SEK 1,702 m versus SEK 768 m previous year
11.8% versus 5.2% previous year
Production levels increased during the quarter
Significantly higher year over year.
Sales in local currency:
Industrial Division: % Service Division: % Automotive Division: %
Negative price/mix influenced by higher automotive sales versus industrial market.
Improving demand outlook for Q2
Significantly higher compared to Q2 2009
Slightly higher sequentially compared to Q1 2010
Manufacturing level
Significantly higher year over year
Higher compared to average Q1 2010
20 April 2010

4. Highlights 2010 Inauguration of two new factories in India:
- The Haridwar factory will manufacture deep groove ball bearings and primarily
serve the two-wheeler market and the vehicle service market in India. Total
investment: around SEK 250 million.
- The Ahmedabad factory will manufacture medium to large size bearings of
various types to serve customer segments such as wind energy and heavy
industries. Total investment: around SEK 450 million.
A programme was concluded in March for adjusting the manufacturing capacity in Gothenburg, Sweden. The total cost of these activities is around SEK 90 million and the benefit of these actions will be around SEK 50 million per year.
The ninth SKF Solution Factory was inaugurated in Houston, USA
Photos
20 April 2010

5. Sales volume
% change y-o-y
2008
2009
2010
20 April 2010

6. Sales in local currencies (excl. structural changes)
% change y-o-y
2008
2009
2010
20 April 2010

7. Growth in local currency (Organic growth + acquisition/divestments)
Long-term target level: 6-8% per annum
% y-o-y
7.1%
5.0%
-19.0%
Organic growth
Acquisitions/Divestments
20 April 2010

8. Growth development by geography Local currency Q1 2010 vs Q1 2009
Europe -6%
North America +1%
Asia/Pacific +34%
Latin America +21%
Middle East & Africa +11%
20 April 2010

9. Components in net sales
2008
2009
2010
Percent y-o-y Q1 Q2 Q3 Q4
4.9
6.2
2.7
-13.0
-26.9
-30.8
-24.9
-14.1
5.3
1.0
1.3
0.5
2.4
1.4
1.1
1.2
0.4
0.0
3.8
4.0
6.4
8.5
7.1
5.6
3.7
0.3
-0.3
9.7
11.5
9.6
-2.1
-18.4
-24.1
-20.0
-13.4
5.0
-1.2
-4.1
-0.9
10.3
13.6
12.2
6.6
-1.4
-7.7
7.4
8.7
8.2
-4.8
-11.9
-14.8
-2.7
Volume
Structure
Price / Mix
Sales in local currency
Currency
Net sales
20 April 2010

10. Operating profit 2008 2009 2010 SEKm Restructuring and one-time items
20 April 2010

11. Operating margin 2008 2009 2010 Long-term target level: 12% %
Restructuring and one-time items
20 April 2010

12. Operating margin Long-term target level: 12% % 12.7* 12.4* 12.2 11.8
8.0*
5.7
Restructuring and one-time items
* Excluding restructuring and one-time items
20 April 2010

13. Operating margin per division%
Service
Industrial
Automotive
2008
2009
2010
Excluding one-off items (eg. restructuring, impairments, capital gains)
20 April 2010

14. First quarter 2010 2010 2009 Net sales 14,446 14,849 Operating profit
SEKm
2010
2009
Net sales
14,446
14,849
Operating profit
1,702
768
Operating margin, %
11.8%
5.2%
Operating margin excl. restructuring, %
12.4%
6.4%
Profit before taxes
1,504
531
Net profit
1,070
394
Basic earnings per share, SEK
2.27
0.86
Cash flow after investments before
financial items 32
523
20 April 2010

15. Inventories as % of annual sales
Long-term target level: 18% %
2008
2009
2010
20 April 2010

16. Cash flow, after investments before financial items
SEKm
Cash out from
acquisitions* (SEKm):
,284
2008
2009
2010
* including non-controlling interests.
20 April 2010

17. Return on capital employed
Long-term target level: 24% %
24.0
11.9
9.1
ROCE: Operating profit plus interest income, as a percentage of twelve months average of total assets less the average of non-interest bearing liabilities.
20 April 2010

18. Net debt (Short-term financial assets minus loans and post-employment benefits)
SEKm
AB SKF,
dividend paid (SEKm):
2008 Q2 2,277
2009 Q2 1,594
2010 Q2 proposed 1,594
Redemption (SEKm):
2008
2009
2010
20 April 2010

19. SKF capital structure
The AB SKF Board proposes the Annual General Meeting 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
20 April 2010

20. Volume trends (based on current assumptions)
Net sales
2009
Europe
51%
North America
17%
Asia Pacific
23%
Latin America 6%
Total
Daily volume trends for:
Q Q2 2010
Outlook Q2
2010 vs 2009 ++
+++
20 April 2010

21. Sequential volume trend main segments Q2 2010 (based on current assumptions)
Net sales 2009 7%
14% 5%
22%
16%
12%
11% 3%
Aerospace
Cars
Energy
Railway
Industrial distribution
Industrial OEM, General+Special
Vehicle Service Market
Industrial OEM, Heavy + Off-highway
Trucks
Electrical and two-wheeler
20 April 2010

22. Volume trends, Divisions (based on current assumptions)
Net sales
2009
Industrial
34%
Service
35%
Automotive
29%
Total
Daily volume trends for Q2 2010
Outlook Q2
2010 vs 2009 +
+++
20 April 2010

23. March 2010: Outlook for the second quarter 2010
Sales development compared to second quarter last year
The demand for SKF products and services is expected to be significantly higher for the Group in total. In Europe and North America it is expected to be higher and in Asia and Latin America significantly higher. It is expected to be slightly higher for the Industrial Division and significantly higher both for the Service Division and Automotive Division.
Sales development compared to the first quarter 2010
The demand is expected to be slightly higher for the SKF Group in total. In Europe and North America it is expected to be slightly higher and in Asia and Latin America higher. For both the Industrial Division and Service Division it is expected to be slightly higher and for the Automotive Division higher.
Manufacturing level
The manufacturing level will be significantly higher year on year and higher compared to the average of the first quarter 2010.
20 April 2010

24. Guidance for the second quarter 2010
Tax level: around 30%
Financial net for the second quarter: Around SEK -150 million
Exchange rates on operating profit versus Q2: SEK -200 million
Full year: SEK -500 million
Additions to PPE: Around SEK 1.5 billion for 2010
Guidance is approximate and based on current assumptions and exchange rates.
20 April 2010

25. SKF Care and Six Sigma as guiding lights
Key focus areas ahead 2010
Profit and cash flow
Adjustment of manufacturing output to new demand levels
Growing segments and geographies
Strengthening the platform/segment approach
Competence development
SKF Care and Six Sigma as guiding lights
20 April 2010

26. SKF Care Business Care Employee Care SKF Care Environmental Care
Operating margin
SKF Care
BeyondZeroTM
Environmental Care
Community Care
20 April 2010

27. SKF Group Vision
To equip the world
with SKF knowledge
20 April 2010

28. 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 April 2010

29. 20 April 2010