1. Automotive Division Tryggve Sthen President, Automotive Division

2. Automotive Division update – Key financials – Division overview Cost reductions Growth in Asia Presentation outline

3. 1 Automotive Division update

4. Automotive Division overview CarsTrucksTwo wheelers Vehicle service market Home appliances & Power tools

5. A good AD journey for many years… 18.6 Excl. One-time costs Sales development Record operating margin SEKb 6.0%

6. The great secession in 2008-2009 followed by a strong recovery 4.4 Excl. One-time costs Sales development Record operating margin SEKb 7.2%

7. 2 Cost reductions

8. Reducing costs – lower cost & better cash Cost cutting Down sizing Managing cash Lower cost & better cash

9. Capacity flexibility - Lay-offs and early retirements Q4 2008 and H1 2009 Europe Lutsk Fontenay Varese St Cyr Leverkusen Asia Pune Americas Glasgow closure Elgin Salt Lake City Tortuguitas Cajamar In total about 2,000 people All sites affected, mainly:

10. Capacity flexibility 2009:At peak about 9,000 people in short-time work

11. Reducing costs - restructuring Cost cutting Down sizing Managing cash Plant restructuring in Europe & North America Shift of production Restructurin g Lower cost & better cash

12. Factory closures/restructuring over the last few years North America Aiken Springfield Franklin Glasgow Elgin Seneca Europe Fontenay, France Schweinfurt, Germany Leverkusen, Germany

13. Shift in manufacturing footprint Latin America growth Mexico –Seals –Bearings Brazil Asia expansion China new HBU plant Korea 2 new plants Indonesia new plant India new plant Manufacturing increase from 30% in 2008 to 45% in 2010 East Europe growth Ukraine capacity Bulgaria capacity

14. Reducing costs Benchmarking Six Sigma Manufacturing Excellence Cost cutting Down sizing Managing cash Plant restructuring in Europe & North America Shift of production Internal improvement s Restructurin g Lower cost & better cash

15. 3 Growth

16. Growth strategy in Asia Grow with winning customers Value for customers

17. Bearings and seals to Fuwa trailer axles Guangdong Fuwa Engineering Manufacturing Co. Ltd. is the largest trailer axle manufacturer in the world Several bearing and seal contracts

18. Bearings to Yuchai engine Yuchai is the largest diesel engine manufacturer in China Recently secured important bearing contract Yuchai engineHub bearing unit 1Fan unit

19. Haridwar factory inaugurated 7 April Haridwar factory to supply ball bearings to Hero Honda and other automotive customers in the region as well as to the aftermarket Contract with Hero Honda for 5 years production: > 100 million bearings

20. Growth strategy in Asia Product introduction targeting Asia demand Broad product offering Value for customers Grow with winning customers

21. Asia targeting product launches in the last 6 months 12 new products launched globally 4 specifically targeting the Asia market SKF One Way Clutch Hub Bearing Unit 1 for compact cars SKF Rocker Arm Bearing & SKF Rocker Arm Bearing Unit

22. Growth strategy in Asia Product introduction targeting Asia demand Aftermarket penetration Broad product offering Value for Customers Grow with winning customers Product range expansion Dealer network expansion

23. Aftermarket business in China Product Range New product lines added New kits added to existing product lines Dealer network 2007 12 Distributor/Dealers 2008 + 8 2009 + 6 2009 = 26 (end of year)

24. A new world – Asia opportunities…

25. ...and with new technology opportunities Global rapid change due to CO 2 regulations and fuel economy Driving new wave of technologies SKF solutions

26. The way ahead Growth Value for customer Broad green offering After- market Emergin g markets Down- sizing Restruct- uring Internal improve- ments Cost reductions

27. Strong start of the year with record operating margin and good recovery in sales! Positive operating result for the full year 2009 despite lower demand (excluding restructuring) Clear recovery in most segments with growing demand especially in emerging markets Restructuring activities Key achievements 2009 and Q1 2010