1. The SKF Group
Year-end result 2003
Tom Johnstone
President and CEO

2. SKF Group
Summary Q4, 2003
Good operational performance Operating margin 10.3 % (ex restructuring and impairments)
- Strong cash flow
- Inventories down
- Good sales growth in local currencies
- Positive price/mix development
Key activities
- 2 factories opened in China
- New business
Restructuring and impairment activities in line with guidance
- Restructuring MSEK 282, Impairments MSEK 205
- Booked MSEK 421 as COGS, MSEK 66 as Selling Expenses
- Main areas announced .

3. SKF Group Fourth quarter 2003
2003*
2003
2002
Net sales
10 245
10 665
Operating profit
1 056
569
1 121
Operating margin
10.3 %
5.6 %
10.5 %
Profit before taxes
966
479
979
Net profit
405
719
Earning per share
3.56
6.34
Cash flow **
812
559
* excluding restructuring and impairment in Q4 2003
**after investments before financing

4. SKF Group Full year 2003 2003* 2003 2002 Net sales 41 377 42 430
Operating profit
3 786
3 299
4 022
Operating margin
9.2 %
8.0 %
9.5 %
Profit before taxes
3 280
2 793
3 542
Net profit
2 039
2 466
Earning per share
17.91
21.67
Cash flow **
2 351
2 644
* excluding restructuring and impairment in Q4 2003
**after investments before financing

5. Sales in local currency
SKF Group
Sales in local currency
% change y-o-y
2001
2002
2003

6. Net sales development per quarter
SKF Group
Net sales development per quarter
Percent
y-o-y
2001
2002
2003
Structure
Volume
Price / Mix
Sales in local currency
Currency Q3 Q4 Q1 Q2
0.4
1.0
1.4
1.9
2.0
0.7
0.1
0.2
0.3
- 3.2
- 3.8
- 7.3
-0.5
3.3
3.9
6.2
3.2
4.2
3.1
1.6
2.1
1.5
1.2
1.7
0.6
- 1.2
- 0.7
- 4.4
2.8
6.5
7.0
8.1
5.6
3.5
8.9
6.7
2.2
-3.7
-8.3
-10.8
-9.3
-8.6
-5.5
-7.4
7.7
6.0
- 2.2
-0.9
-1.8
-3.8
-1.2
-4.7
-3.9
Net sales

7. Operating margin Adjusted*
SKF Group
Operating margin Adjusted* %
2001
2002
2003
* excluding restructuring and impairment in Q

8. Operating margin per division Adjusted*
SKF Group
Operating margin per division Adjusted* %
Service
Industrial
Electrical
Automotive
Aero and Steel
2001
2002
2003
* excluding restructuring and impairment in Q

9. Inventories as % of annual sales Target 20%
SKF Group
Inventories as % of annual sales Target 20% %
2001
2002
2003

10. * Short-term financial assets - Loans
SKF Group
Net cash*
MSEK
Dividend paid:
2003 Q2, MSEK 911
2002 Q2, MSEK 683
2001 Q2, MSEK 598
Dividend proposal:
2004 Q2, MSEK 1 138
2001
2002
2003
* Short-term financial assets - Loans

11. SKF Group
Net interest bearing liabilities, 2003 (Short-term financial assets - loans - net postemployment benefits)
MSEK

12. * Board proposal for 2003 dividend
SKF Group
Dividend development
SEK
* Board proposal for 2003 dividend

13. SKF B

14. SKF Group Volume trend External sales 2003 Oct 2003 Jan 2004 Europe
57%
North America
22%
Asia Pacific
14%
Latin America 4%
Total

15. SKF Group Volume trend External sales 2003 Oct 2003 Jan 2004
Industrial
23%
Automotive
32%
Electrical 4%
Service
32%
Aerospace 4%

16. SKF Group Outlook January 2004
The market demand for the Group's products and services is expected to improve during the first quarter In Europe it is expected to be slightly higher, while it will remain relatively flat in North America. Demand is expected to increase significantly in both Asia and Latin America.
Manufacturing will, as is normal during the first half of the year, be increased slightly ahead of market demand to ensure a good service level throughout the summer period.

17. Target 10 % operating margin level
SKF Group
Target
10 % operating margin level
10 BSEK additional annual net sales To be reached within the 2005/2006 time period

18. SKF Group Operating margin - adjusted%

19. Sales growth in local currencies
SKF Group
Sales growth in local currencies %

20. Examples of growth areas 2003 / 2002
SKF Group
Examples of growth areas 2003 / 2002
China +35 %
Central and Eastern Europe +10 %

21. Examples of growth areas 2003 / 2002
SKF Group
Examples of growth areas 2003 / 2002
Medical segment within Linear Motion business 12%
Vehicle Service market 10%
SKF Railway segment 10 %

22. SKF Group Areas in focus 2004
Operating margin level - maintain a positive price mix
- implement restructuring plan
Continued sales growth - maintain organic growth pace
- acquisitions
Cash flow in line with net profit
Launch Six Sigma throughout SKF Group

23. SKF Group Cautionary Statement
This report 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 20-F report on file with the SEC (United States Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk Factors".