1. © SKF Group Fast growing markets / Special focus Asia Market update Key market drivers Manufacturing footprint Engineering footprint Successful business Ulrich Selig Director, Automotive Asia

2. © SKF Group Passenger car production - Asia Asia ~ 50% of global car production Out of top 15, six are Japanese manufacturers Foreign JVs market leadership in China Source: IHS August 2014 CMD 2014

3. © SKF Group Heavy and medium truck production - Asia Asia ~ 60% of global truck production Top 5 heavy truck manufacturers come from China Source: LMC Report Q2 2014 CMD 2014

4. © SKF Group Key drivers to impact the Asian automotive market Urbanization Disposable income growth Infrastructure development Rapid growth in small cars Electric vehicles Total cost of ownership CMD 2014

5. © SKF Group Manufacturing and engineering footprint - Asia Wuhu Jinan Taegu Jakarta Mysore Pune Haridwar Busan Shanghai ATC I + SSBC Bangalore Shanghai ATC II Singpore New factories established ₋ ACTII factory, Shanghai, China - production started 2014 ₋ Jinan factory, China - production started 2012 ₋ Mysore factory, India - production started 2012 SKF Global Technical Centres expanding 13 production sites New factories established ₋ ACTII factory, Shanghai, China - production started 2014 ₋ Jinan factory, China - production started 2012 ₋ Mysore factory, India - production started 2012 SKF Global Technical Centres expanding 13 production sites CMD 2014

6. © SKF Group Global Technical Centres in Asia Global Technical Centre China Shanghai (Jiading Campus) Employees ： ~400 (to 2016) Opened ： 2013 Q4 Automotive Testing Centre Japan, Chino Global Technical Centre India Bengaluru Employees ： ~400 (to 2016) Opened ： 2012 CMD 2014

7. © SKF Group Product engineering centre - Asia Truck Meet local customer specific challenges Quicker answers Specialized and dedicated engineering teams Global product development and design process to ensure worldwide quality standards Trucks Two wheelers Light vehicles Trucks Seals Global Technical Centre IndiaGlobal Technical Centre China CMD 2014

8. © SKF Group Key automotive customers in Asia Passenger cars Commercial vehicles CMD 2014

9. © SKF Group 2014 - YTD 4 OEM customer days 21 VSM distributor days 10 Truck Fleet customer days Customer technical days 2013 18 OEM customer days 25 VSM distributor days 50 locations 4,000 visitors 2014.04.23 VSM Distributor Day 2014.04.29 Hande Axle Tech Day 2013.09.21 Volvo China Tech Day2013.11.20 GAC Tech Day 2014.03.12 Sweden Innovation Day 2014.05.23 SAGW Tech Day CMD 2014

10. © SKF Group Great Wall - China ‘000 units Strategic partnership agreement Solutions Wheel hub bearing unit (HBU) Transmission bearing Engine and driveshaft seals Great Wall Leading local car brand in China Strong growth plans Sales target 2015: “Focus Dedication Specialization” Russia South Africa Australia Italy Chile Source: Great Wall CMD 2014

11. © SKF Group Great Wall To grow our business in China and globally we need high quality suppliers with advanced engineering capabilities, close to us locally and a solid footprint globally. Great Wall wants SKF, as our strategic partner, to support us to reach global fame with the aim of building the best Chinese vehicles.

12. © SKF Group Geely - China Solutions Transmission bearings (deep groove ball bearing, bearing retainer) Transmission seal (low friction bonded piston seal) Engine seal Geely Mission: Build the safest, most environmentally-friendly and most energy-efficient cars, and bring Geely cars to the world! In 2013,GEELY Holding Group revenue achieved 24.55 Billion US dollars, listed as the 477 th company of world fortune 500 “Happy life, Geely drive.” CMD 2014

13. © SKF Group Dongfeng Commercial Vehicle - China Solutions Engine idler bearing Tapered roller bearing for transmission Maintenance-free universal joint bearing and hanger bearing for propeller shaft Tapered roller bearing for axle Dongfeng Leading heavy and medium duty trucks manufacturer in China Sold over 172,000 heavy and medium duty trucks in year 2013 A strategic alliance established with AB Volvo to build Dongfeng into a global brand “Chinese Dongfeng Global Dongfeng” CMD 2014

14. © SKF Group Dongfeng Commercial Vehicle Mr. Huang Gang, General Manager ●Competence, technology and quality products ●Deepen and widen cooperation ●Support to improve trucks for global customers

15. © SKF Group Mazda - Japan Solutions Transmission seal (low friction bonded piston seal) Robust MacPherson supspension bearing unit Mazda Sold 1.3M vehicles worldwide in 2013 Over 80% sold outside Japan New plant in Mexico for Mazda 2 and Mazda 3 started operation in 2014 Forecast 1.5M vehicles worldwide in 2015 ”Zoom Zoom” CMD 2014

16. © SKF Group Isuzu – Japan Solution Tapered roller bearing Isuzu Global truck manufacturer Aims to be a leader in transportation, commercial vehicles and diesel engines, supporting customers and respecting the environment More than 70% of Isuzu turnover comes from overseas countries CMD 2014

17. © SKF Group Hyundai/Kia - Korea Solutions Wheel hub bearing unit Robust MacPherson suspension bearing unit Hyundai/Kia Overseas production expected to grow slightly to exceed domestic Hyundai-Kia 5th largest automotive OEM group Global footprint: “The power to surprise” “New thinking New possibilities” CMD 2014

18. © SKF Group Hyundai Motors Mr. Byeong-Jun, Kim, Purchasing Director “ Working with SKF, we know we get the advanced and highest performing solutions we need for our vehicles to reach the world best level of the cars. Hyundai & Kia have grown tremendously over the last years globally, and we recognize that SKF’s global engineering and manufacturing footprint are a highly valuable support to us in our continued growth. We are pleased to work with SKF as we also have their timely and skilled support close to us in Korea and we look forward to continued growth with SKF. “

19. © SKF Group Honda - Indonesia Solution Wheel hub bearing unit (HBU) Honda Leading car manufacturer in Indonesia Opening for further HBU business also with other car manufacturer Indonesia Fast growth of small cars due to economical development transition from TW Local Indonesia manufactured parts will enable customer to meet government requirement for incentive scheme “The Power of Dreams” CMD 2014

20. © SKF Group Key message for Automotive Asia Increasing engineering capacity close to the customer Utilizing manufacturing capacity including new factory to grow with our customers Signing strategic partnership agreements strengthens growth for future market share Continue building strong relationship with customers; recognition with quality and business awards

21. © SKF Group SKF Automotive strategy Cost and capital efficiency Product- ivity Robust supplier base Cost reductions CMD 2014