1. 0 31 January 2008

2. The SKF Group Year-end results 2007 Tom Johnstone, President and CEO

3. 2 31 January 2008 Strong Q4, strong full-year, positive outlook Strong sales growth Operating profit, excl. one-time items, up with around 20% Strong cash flow Continued good volume growth for the first quarter 2008 Proposed distribution to shareholders of SEK 4,554 million

4. 3 31 January 2008 Major events during the fourth quarter 2007 Acquisition completed of S2M, magnetic bearings SKF and GE Aviation agreed to establish a company for the manufacture and refurbish of bearings for GE's engines for large aircraft Announced to build a factory in Russia for tapered bearing units to supply the Russian railway market Announced to close the manufacturing facility in Glasgow, United States, and reduce the number of employees at the Fontenay-le-Comte facility in France New business: Started a joint project with Knorr-Bremse to develop condition monitoring of brake control systems Signed a long-term service contract to supply ArcelorMittal Gained business on new hybrid pinion unit solution for automotive, provides 30% friction reduction

5. 4 31 January 2008 Highlights previous quarters 2007 Main acquisitions: ABBA Linear Tech Co., Ltd., Taiwan Three service companies in North America Other highlights: announced investments for two new factories in India announced significant investments in Sweden announced the development of energy-efficient bearings and a number of other energy-efficient solutions distributed SEK 6,603 million to shareholders was included in the DJSI World and DJSI STOXX indexes for the eighth year in succession, and in the FTSE4Good Index for the seventh year in succession

6. 5 31 January 2008 SEKm20072006 Net sales15,07013,895 Operating profit1,8311,858 Operating margin12.1%13.4%* Profit before taxes1,7101,846 Net profit1,1051,257 Basic earnings per share, SEK2.332.67 Cash flow after operating investments before financial items 6171,561 Cash flow after operating investments before financial items, excluding acquisitions 1,1232,022 Fourth quarter 2007 * 9.9% excluding Ovako

7. 6 31 January 2008 SEKm20072006 Net sales58,55953,101 Operating profit7,5396,707 Operating margin12.9%12.6%* Profit before taxes7,1386,387 Net profit4,7674,432 Basic earnings per share, SEK10.099.48 Cash flow after operating investments before financial items 2,1262,158 Cash flow after operating investments before financial items, excluding acquisitions 3,3354,287 Year-end results 2007 * 11.3% excluding Ovako

8. 7 31 January 2008 Operating margin % 2005 2006 2007 Long-term target: 12% operating margin level

9. 8 31 January 2008 Operating margin % *excluding income from the jointly controlled company Oy Ovako Ab 12.6 10.8 12.9 10.4* 11.3* Long-term target: 12% operating margin level

10. 9 31 January 2008 Operating margin per division Industrial Service Automotive % 2005 2006 2007

11. 10 31 January 2008 Sales in local currencies (excl. structural changes) % change y-o-y 2005 2006 2007

12. 11 31 January 2008 Growth development in local currency % Y-o-Y Acquisitions/Divestments Organic growth 7.3* 7.5* 13.2 * Excluding effect from Ovako:2005 10.4% 2006 10.1% Long-term target: 6-8% growth in local currencies, per annum

13. 12 31 January 2008 Net sales development per quarter Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 8.37.65.11.36.02.53.38.87.96.99.06.3 2.30.2-2.9-3.7-4.9-0.51.14.64.04.63.71.0 3.6 2.12.62.92.0 2.31.82.72.03.2 14.211.44.30.24.0 6.415.713.714.214.710.5 -3.20.23.29.48.01.0-2.1-5.8-5.6-2.3-1.9-2.0 11.011.67.59.612.05.04.39.98.111.912.88.5 Percent y-o-y Volume Structure Price / Mix Sales in local currency Currency Net sales 2005 2006 2007

14. 13 31 January 2008 Growth development by geography Europe 15% North America 7% Asia 15% Latin America 11% Local currency 2007 vs 2006

15. 14 31 January 2008 Industrial Division Acquisitions ABBA Linear Tech Co., Ltd. S2M SEKm20072006 Net sales19,26617,176 Sales incl. intra-Group sales29,31826,698 Operating profit3,4303,027 Operating margin11.7%11.3% Net sales growth 12.2% organic growth 10.0% structure 5.0% currency effects -2.8% Major investments New factory for large size bearings in India Increased investments in Sweden New factory for tapered roller bearing in Russia In Q4 2006, SEK 210 m in restructuring charges, impairments and write-offs In Q4 2007, SEK 30 m in restructuring activities and other one-time items

16. 15 31 January 2008 Highlights Industrial Division SKF will supply the tapered roller bearing units to the Île de France suburban trains manufactured by Bombardier Transportation A long term supply agreement with Suzlon Energy Ltd SKF and Caterpillar forged a strategic partnership SKF Agri Hub, a relubrication free solution for agricultural implements Developed a lubrication system for machine tool spindles SKF Conro Low, a relubrication free roll unit for the lower segments in continuous slab casters Photo: Bombardier Transportation

17. 16 31 January 2008 Service Division Acquisitions Preventive Maintenance Company Inc. (PMCI) Baker Instruments Company Automatic Lubrication Systems (ALS) SEKm20072006 Net sales19,59717,984 Sales incl. intra-Group sales21,39319,761 Operating profit2,8462,362 Operating margin13.3%12.0% In Q4 2006, SEK 20 mill ion in restructuring charges and write-offs Net sales growth 9.0% organic growth 12.0% structure 0.8% currency effects -3.8%

18. 17 31 January 2008 Highlights Service Division A partnership with Aker Kvaerner for condition based maintenance for the offshore and onshore oil and gas industry A two-year IMS contract signed with the world's leading producer of bleached eucalyptus pulp, Brazilian company Aracruz An agreement with Meridium, Inc. granting SKF non-exclusive rights to license and distribute Meridium Asset Performance Management System software Expansion of SKF’s 360° Solution programme Expansion of SKF power transmission products into the European market Introduction of the SKF Certified Rebuilder programme for electric motors SKF Caster Analyst System, load and temperature measurement for slab casters New important tools: The @ptitude Monitoring Suite and SKF Client Needs Analysis for Energy and Sustainability

19. 18 31 January 2008 Automotive Division Acquisitions the remaining 40% shareholding in SKF (Shanghai) Bearing Company Ltd. SEKm20072006 Net sales19,61717,869 Sales incl. intra-Group sales23,79521,807 Operating profit1,154946 Operating margin4.8%4.3% Major investments expansion of the seal manufacturing facility in Judenburg, Austria Haridwar, Uttarakhand in India – ball bearings Net sales growth 9.8% organic growth 8.3% structure3.8% currency effects -2.3% In Q4 2006, SEK 170 m in restructuring charges, impairments and write-offs In Q4 2007, SEK 270 m in restructuring activities and other one-time items

20. 19 31 January 2008 Highlights Automotive Division business for the steering column bearing with Piaggio in India business for wheel hub units for a four-wheeler light vehicle with Piaggio in India business with Hendrickson in the USA for the recently launched SKF Wheel End Monitor, which helps track possible damage and wear to trailer wheel bearings a wheel bearing solution to be manufactured in Spain for the new Renault Master platform wheel bearings for the new Ford Focus generation in North America, with the Chinese company Shanghai Automotive Industry Corporation for a new car platform and for a new Alfa Romeo platform additional business in China for two Chery models SKF and Haldex have jointly developed an integrated truck hub unit with a dual disc brake and fixed caliper

21. 20 31 January 2008 Six Sigma 4 dimensions: ”Standard” Six Sigma, Design for Six Sigma, Lean Six Sigma and Six Sigma for Growth 2007 status: 16 Master Black Belts 378 Black Belts 1,614 Green Belts 704 projects closed, whereof 145 replicated 915 projects ongoing Hard savings in 2007: SEK 302 m (up >50% from 2006)

22. 21 31 January 2008 Cash flow, after operating investments before financial items 2005 2006 2007 SEKm Cash out from acquisitions (SEKm) : 2005 419 2006 2,129 2007 1,209 Cash in from Ovako (SEKm) : 2006 Q4 1,217 2007 Q2 46

23. 22 31 January 2008 Net debt (Short-term financial assets minus loans) SEKm AB SKF, dividend paid (SEKm) : 2005 Q2 1,366 2006 Q2 1,821 2007 Q2 2,049 2005 Q2, redemption 2,846 2007 Q2, redemption4,554 2005 2006 2007

24. 23 31 January 2008 Net debt (Short-term financial assets minus loans and post-employment benefits) SEKm

25. 24 31 January 2008 Inventories as % of annual sales % 2005 2006 2007 Long-term target: 18%

26. 25 31 January 2008 Return on capital employed ROCE: Operating profit plus interest income, as a percentage of twelve months average of total assets less the average of non interest bearing liabilities. % Long-term target: 24%

27. 26 31 January 2008 SKF capital structure 1. a 11.1% increase in the dividend, SEK 5.00 per share 2. a share split 2:1 combined with an automatic redemption procedure of one share for SEK 5.00 3. a mandate to the Board to repurchase the company's own shares Adding up to a total distribution to shareholders of SEK 4,554 million The AB SKF Board proposes the AGM to decide on:

28. 27 31 January 2008 January 2008: Outlook for the first quarter 2008 (compared to the fourth quarter 2007) The market demand for SKF's products and services in the first quarter of 2008 is expected to be higher for the Group. The demand is expected to be higher in Europe, significantly higher in Asia and Latin America and relatively unchanged in North America. The demand is expected to be higher in all divisions. The manufacturing level for the first quarter 2008 will be unchanged compared to the fourth quarter 2007, and higher than the first quarter 2007.

29. 28 31 January 2008 Volume development Daily volume trend for: Q4 2007 Q1 2008 Net sales 2007 Europe 56% North America 18% Asia Pacific 18% Latin America 5% Total Outlook Q1 2008 vs 2007 ++ = +++ ++

30. 29 31 January 2008 Guidance 2008 Tax level: 32% Financial net for first quarter: minus SEK 130 million Exchange rates on operating profit versus 2007 Q1: a slightly negative effect Full year: a negative effect of SEK 150 million Additions to property, plant and equipment: slightly above SEK 2 billion Guidance is approximate and based on current assumptions and exchange rates

31. 30 31 January 2008 Key focus areas ahead Strengthen the platform/segment approach Maintain a positive price/mix Focus on fast growing segments and geographies Drive operational efficiency and Six Sigma Manage material costs and supply Attract and retain the best people Use sustainability as a guiding light

32. 31 31 January 2008 Employee Care Community Care Business Care SKF Corporate Sustainability Environment Care BeyondZero TM SKF Care Operating margin

33. 32 31 January 2008 To equip the world with SKF knowledge SKF Group Vision

34. 33 31 January 2008