1. SKF Automotive SKF Capital Markets Day ● 10 September 2014 Page 1
16 April, 2019
16 April 2019

2. SKF Automotive speakers
Tryggve Sthen
President
Ulrich Selig
Director,
Automotive Asia
Luc Graux
Manufacturing & Demand Chain
16 April 2019

3. Agenda SKF Automotive Market update Way ahead Summary Q&A
SKF Automotive strategy
Growth
Cost reductions
Summary
Key business message
Q&A

4. Market update

5. Customer segments Vehicle aftermarket Cars Trucks Two wheelers Other
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6. Light vehicle production 2014 full year forecast
Total growth 2014/2013: +4.6%
Values in K units
+4.6 %
+5.2 %
+4.5 %
Source: IHS August 2014
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7. Truck production (GVW>6t) 2014 full year forecast
Total growth 2014/2013: +2.1%
Values in K units
+2.6%
+11.5%
-10.2%
Source: LMC Report Q2 2014
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8. Two wheeler production 2014 full year forecast
Total growth
2014/2013: +5%
Values in K units
+4%
+9% 0% 0%
Source: Frost & Sullivan and others, July 2014
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9. Business result Sales development Operating margin 2012 2013 2014 H1
YoY: 2%
2012
2013
2014 H1
2.2%
4.0%
4.8%
YoY: 5%
SEK billion
Excl. one time costs
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10. The way ahead

11. SKF Automotive strategy
Growth
Fast growing markets
After-market
Winning customers
Engin-eering partner
Strategic account mgmt
Cost and capital
efficiency
Product-ivity
Robust supplier base
Cost reductions
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12. Strategic account mgmt
Growth areas
Growth
After-market
Fast growing markets
Engin-eering partner
Winning customers
Strategic account mgmt
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13. Successes Continued strong order intake
Deliveries started from strong order intake 2011/2012
Strategic and engineering partnerships
Customer quality award recognitions
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14. GM quality awards for several consecutive years
Solution examples
Wheel hub bearing units
Transmission bearings
Transmission seals
Engine seals
Supplier of the Year award
4 consecutive years
Supplier Quality Excellence award
Busan, Korea
Leverkusen, Germany
Cajamar, Brazil – 2013, 2014
Tortuguitas, Argentina – 2014
Seneca, USA
Supplier of the Year award 2013
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15. Successful business with Volvo Cars
Solution for XC
Wheel hub bearing unit gen. 3
Solutions for V40, S60L
MacPherson suspension bearing unit
SKF benefits
Strong reliable engineering partnership leading to long-term business on new platform
Growing volumes
Quality award recognition
Volvo Cars Quality Excellence Award
SKF Airasca, Italy
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16. Volvo Cars Mr. Sven-Ole Svensson, Director Global Purchasing
Low friction solution – reduced fuel consumption
State of the art technology
Global footprint
Competitive value for money
Best supplier - good match

17. Successful business with Fiat/Chrysler
Solution for SUV models
Wheel hub bearing unit gen 3
SKF benefits
Strong reliable co-operation leading to more than one billion SEK agreement for long-term business on new platform
Potential for further large businesses
Growing volumes
Quality award recognition
Fiat Group Qualitas award
SKF Airasca, Italy
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18. Fiat Group
The Fiat Group’s Quality Supplier of the Year Award recognizes a supplier with high quality products and support leading to improved vehicle value.
SKF is being recognized for providing an outstanding quality performance, taken into account high product complexity and significant production volumes. SKF has also shown an intense commitment to new developments within Fiat and FPT platforms.

19. Successful business with Hino
Solution
Tapered roller bearing for wheel end
SKF benefits
First TRB for series production to Japanese truck OEM in 2012
VSM business increased potential in Japan and other Asian countries where Japanese truck OEs have high market share
Quality award recognition
Hino Quality award
SKF Lutsk, Ukraine
CMD 2014

20. SKF Automotive strategy
After-market
Fast growing markets
Winning customers
Strategic account mgmt
Growth
Engin-eering partner
CMD 2014

21. Launched Automotive NMOs 2010-2014
Engine
Wheel end
Transmis-sion and clutch
Suspen-sion
Steering
Electrifi-cation
Body
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22. SKF BeyondZero Automotive portfolio
Energy efficient solutions to reduce CO2 emissions and fuel/energy consumption.
SKF StopGo
SKF Rotor Positioning Sensor-Bearing Unit for traction motors
SKF eDrive Ball Bearing
SKF Rotor Positioning Bearing
Electrifica- tion
SKF Low Friction Engine Seal
High pressure valve stem seal
High pressure valve stem seals with lower friction
SKF Turbocharger Ball Bearing Unit
Engine
downsizing
& friction
reduction
E2 TRB for truck final drive
Sealed DGBB for driveline
Driveline angular contact ball bearing
Ball pinion unit
SKF Hybrid Pinion Unit
Transmission friction reduction
SKF Automotive solutions approved in the SKF BeyonZero portfolio as of April 2014
Low friction grease for hub bearing units
SKF Low Friction Hub Bearing Unit
Low friction X-Tracker
SKF Sealed Energy Efficient deep groove ball bearing
SKF Low Weight Hub Bearing Unit
High performance seal for HBU
Wheel end friction & weight reduction
SKF Bus Door Actuator
Mecha- tronics
CMD 2014
16 April 2019

23. SKF BeyondZero Automotive portfolio development
Sales development
Outlook
Mega trends supporting efficient use of earth resources
CO2 legislations sharpened
The market for hybrid electric vehicles (HEV) and electric vehicles (EV) expected to expand significantly
SEKm
2012
2013

24. Hybrid and Electric powertrain
SKF Rotor Positioning Bearing for stop-start
Peugeot 308 Citroen DS3
SKF eDrive Ball Bearing for e-motor
VW e-up! Mercedes-Benz SLS AMG
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25. Successful sealing solution with reduced friction
Efficient transmission sealing solution
Enables lower weight design of the transmission
Enhances smoothness in gear shifting
Reduces friction by up to 80%
Unique patented solution
Low friction bonded piston seal
…and several other major global vehicle manufacturers…..
CMD 2014
16 April 2019

26. Innovations in Engine Energy recovery bearings
Leading the way in Formula one improving fuel efficiency with up to 30%
Enables high performance in downsized engines with patented design
Valve stem seals with lower friction
Enables higher valve train efficiency under extreme pressure in downsized engines
Improved and patented design
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27. Meeting CO2 targets and improving mileage
Co2 reduction (g/km)
Full electric
Hybrid
Conventional
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28. SKF Automotive strategy
Fast growing markets
Winning customers
Engin- eering partner
Strategic account mgmt
Growth
After- market
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29. A world of SKF vehicle aftermarket products
Leverage global reach
Product range
Customer support concepts
Global sourcing
Strengthen platforms in eastern Europe, South America and Asia.
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30. Growing assortment Focus Kit development
Increase SKF content in the box
SKF branded products
Kit development
More than 7% CAGR
Wheel end
Engine
Driveline
Other (TW, chassis)
No. of kits
2009
2010
2011
2012
2013
2014 FC2014 FC
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31. Expanding distribution network
Focus
Distribution network white spots
E-commerce
Development
Growth in Brazil and Mexico
High speed growing the Asia distributor network
Asian distribution network development
India
(2014/2012)*
China
SKF distributors
+12%
+42%
SKF retailers
+18%
+43%
Be prepared for to answer on recall Brazil steering kit and USA/Mexico seals
*) 2014 June
CMD 2014
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32. Bosch Service - Brazil Solutions Bosch Service
Full aftermarket assortment
Bosch Service
1,800 service repair centres
Largest in Brazil
SKF / Bosch Service co-marketing
“We are truly happy to have SKF’s aftermarket products in our Service Centers. Not only do the products fit with our profile, the support SKF and SKF Distributors offer our garages is what we appreciate highly, as part of our professional service concept”, says Daniel Angelo, Workshop Concept Manager, Bosch Service
CMD 2014

33. Strengthening support to mechanics
Focus
Establish SKF brand preference
Utilize Social Media, apps, etc
Activities and objectives
Closer to garages with training and support
Mounting instruction videos on YouTube
Easy access to parts information in app
CMD 2014

34. SKF Automotive strategy
Growth
After-market
Winning customers
Engin- eering partner
Strategic account mgmt
Fast growing markets
CMD 2014