1. 0 19 October 2010

2. The SKF Group Tom Johnstone, President and CEO 19 October 2010

3. 2 Agenda Nine-months report and outlook New financial targets Acquisition of Lincoln Industrial

4. 3 19 October 2010 Agenda Nine-months report and outlook New financial targets Acquisition of Lincoln Industrial

5. 4 19 October 2010 Key points, Q3 report Strong performance Operating profit: SEK 2,309 m (957). Operating margin: 14.9% (7.2) Profit before tax: SEK 1,950 m (689), including SEK 150 m related to Ovako. Cash flow: SEK 1,936 m (1,359) Organic sales development in local currency: SKF Group:+19.3% Industrial Division:+17.9% Service Division:+22.7% Automotive Division:+15.0% Outlook for Q4 Demand Significantly higher compared to Q4 2009 Slightly higher sequentially compared to Q3 2010, adjusted for normal seasonality Manufacturing level Significantly higher year over year Unchanged compared to Q3 2010, adjusted for normal seasonality

6. 5 19 October 2010 Two new factories announced: -Dalian, China for medium-sized bearings Investment: around SEK 400 m In operation: in 2011 Employees: 250 people -Mysore, India for seals Investment: around SEK 160 m In operation: second half of 2012 Employees: 600 people Investment of around USD 18 m in a new heat treatment facility in Falconer, USA. Two new SKF Solution Factories were inaugurated, one in the UK and one in Turkey. Highlights Q3 2010 – investing for the future

7. 6 19 October 2010 Contract gained with Guohua Energy Investment for 180 SKF WindCon systems for existing turbines, and 58 SKF WindCon systems for a new wind farm in Beijing. Over two billion USD documented savings by customers as a result of using SKF solutions. Data collected over a 10-year period with the use of SKF Documented Solutions Program. Continued launch of new products. SKF's factory in Tver, Russia achieved Gold and SKF’s headoffice in the USA Platinum awards to the U.S. Green Building council's LEED standard. SKF was included in the 2010 Dow Jones Sustainability Indexes (DJSI) and in the FTSE4Good Index Series. Highlights Q3 2010 – customers and sustainability

8. 7 19 October 2010 Examples of new product launches SKF Commutation Sensor-Bearing Unit Four-row tapered roller bearing SKF MetroCon – CBM for elevators and escalators Low friction X-Tracker SKF Cam Follower Unit SKF SPEEDI-SLEEVE SKF One Way Clutch SKF Crane Asset Management SKF Idler Sound Monitor kit SKF Hydraulic driven lubricator SKF Engineering Simulation Services SKF solutions for special pumps

9. 8 19 October 2010 Sales volume % change y-o-y 2008 2009 2010

10. 9 19 October 2010 Sales in local currencies (excl. structural changes) % change y-o-y 2008 2009 2010

11. 10 19 October 2010 Growth in local currency (Organic growth + acquisition/divestments) % y-o-y Acquisitions/Divestments Organic growth 7.1% -19.0% 13.2%

12. 11 19 October 2010 Europe +12% Asia/Pacific +34% Latin America +19% Middle East & Africa +11% North America +24% Growth development by geography Local currency Q3 2010 vs Q3 2009

13. 12 19 October 2010 Europe +4% Asia/Pacific +34% Latin America +22% Middle East & Africa +11% North America +11% Growth development by geography Local currency YTD September 2010 vs YTD September 2009

14. 13 19 October 2010 Components in net sales Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 4.96.22.7-13.0 -26.9-30.8-24.9-14.15.316.619.0 1.01.30.52.41.41.11.20.40.0 3.84.06.48.57.15.63.70.3-0.3-0.50.3 9.711.59.6-2.1-18.4-24.1-20.0-13.45.016.119.3 -1.2-4.1-0.910.313.612.26.6-1.4-7.7-5.2-3.2 8.57.48.78.2-4.8-11.9-13.4-14.8-2.710.916.1 Percent y-o-y Volume Structure Price / Mix Sales in local currency Currency Net sales 2008 2009 2010

15. 14 19 October 2010 Operating profit SEKm 2008 2009 Restructuring and one-time items 2010

16. 15 19 October 2010 Operating margin % 2008 2009 Restructuring and one-time items 2010

17. 16 19 October 2010 Operating margin % 12.2 5.7 12.7* 8.0* Restructuring and one-time items * Excluding restructuring and one-time items 13.9* 13.7

18. 17 19 October 2010 Operating margin per division Industrial Service Automotive % 2008 Excluding one-off items (eg. restructuring, impairments, capital gains) 2009 2010

19. 18 19 October 2010 SEKm 20102009 Net sales15,46513,324 Operating profit2,309957 Operating margin, %14.9%7.2% Operating margin excl. restructuring, %14.9%8.7% Profit before taxes1,950689 Net profit1,425483 Basic earnings per share, SEK3.051.01 Cash flow after investments before financial items 1,9361,359 Third quarter 2010

20. 19 19 October 2010 SEKm 20102009 Net sales45,62042,340 Operating profit6,2502,199 Operating margin, %13.7%5.2% Operating margin excl. restructuring, %13.9%7.3% Profit before taxes5,5011,532 Net profit3,9461,200 Basic earnings per share, SEK8.412.56 Cash flow after investments before financial items 3,1284,307 First nine months 2010

21. 20 19 October 2010 Inventories as % of annual sales % Long-term target level: 18% 2008 2009 2010

22. 21 19 October 2010 Cash flow, after investments before financial items SEKm Cash out from acquisitions (SEKm) : 2008 1,284 2009241 2008 2009 2010

23. 22 19 October 2010 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. % 24.0 9.1 20.7

24. 23 19 October 2010 Net debt (Short-term financial assets minus loans and post-employment benefits) SEKm AB SKF, dividend paid (SEKm) : 2008 Q22,277 2009 Q21,594 2010 Q21,594 Redemption (SEKm) : 2008 Q22,277 2008 2009 2010

25. 24 19 October 2010 Debt structure Maturity years, EURm 55 446 130 100 Unutilized credit facilities: EUR 500 m 2014 SEK 3,000 m 2017 No financial covenants nor material adverse change clause

26. 25 19 October 2010 September 2010: Outlook for the fourth quarter 2010 Development compared to fourth quarter last year The demand for SKF products and services is expected to be significantly higher for the Group, the divisions and for the different geographical areas. Development compared to the third quarter 2010 and adjusted for normal seasonality The demand is expected to be slightly higher for the Group, the divisions and for the different geographical areas. Manufacturing level The manufacturing level will be significantly higher year on year and unchanged compared to the third quarter, adjusted for normal seasonality.

27. 26 19 October 2010 Volume trends, regions (based on current assumptions and adjusted for seasonality) Daily volume trends for: Q3 2010 Q4 2010 Net sales 2009 Europe51% North America17% Asia Pacific23% Latin America6% Total Outlook Q4 2010 vs 2009 +++

28. 27 19 October 2010 Volume trends, divisions (based on current assumptions and adjusted for seasonality) Daily volume trends for Q4 2010 Net sales 2009 Industrial34% Service35% Automotive29% Total Outlook Q4 2010 vs 2009 +++

29. 28 19 October 2010 14% 5% 22% 16% 12% 11% 7% 3% Cars Railway Industrial distribution Industrial OEM, General+Special Vehicle Service Market Industrial OEM, Heavy + Off-highway Aerospace Energy Electrical and two-wheeler Trucks Sequential volume trend main segments Q4 2010 (based on current assumptions) Net sales 2009

30. 29 19 October 2010 Guidance for the fourth quarter 2010 Tax level: around 30% Financial net for the fourth quarter: Around SEK -175 m Exchange rates on operating profit versus 2009 Q4: SEK -50 m Full year: SEK -400 m Additions to PPE: Around SEK 1.6 bn for 2010 Guidance is approximate and based on current assumptions and exchange rates.

31. 30 19 October 2010 Agenda Nine-months report and outlook New financial targets Acquisition of Lincoln Industrial

32. 31 19 October 2010 Sales growth in local currency % * Excl. effects from sale of Ovako: 2005: 10.4% 2006: 10.1% 5.2 11.8 7.3* 7.5* 13.2 7.1 Long-term targets 12% Operating margin, level 6-8% Growth per annum (local) 24%Return on capital employed -19.0 SKF Group performance Operating margin % 9.9 10.8 12.6 8.0 12.9 12.2 5.7 14.0 19.0 21.9 23.0 24.9 Return on capital employed % 24.0 9.1 13.7 20.7* 13.2 * 2010 annualised is 23.9%

33. 32 19 October 2010 Sales growth in local currency % * Excl. effects from sale of Ovako: 2005: 10.4% 2006: 10.1% 5.2 11.8 7.3* 7.5* 13.2 7.1 -19.0 Operating margin % 9.9 10.8 12.6 8.0 12.9 12.2 5.7 14.0 19.0 21.9 23.0 24.9 Return on capital employed % 24.0 9.1 13.7 20.7* 13.2 * 2010 annualised is 23.9% Targets ACHIEVED Long-term targets 12% Operating margin, level 6-8% Growth per annum (local) 24%Return on capital employed SKF Group performance

34. 33 19 October 2010 New financial targets Old targetsNew targets Operating margin level12%15% Annual sales growth in local currencies 6-8%8% ROCE24%27% Inventory to sales18%

35. 34 19 October 2010 SKF Group, long-term view World recovery will continue (with some uncertainties) Growth will be uneven between regions - Asia +++ - L. America, Cent/East Europe, MEA++ - N. America, W. Europe, Japan + SKF Group focus on platforms/segments and delivering value will result in better growth than industrial production Asia, Industrial business and the aftermarket will continue to increase as part of the Group

36. 35 19 October 2010 SKF’s business strategy for achieving long-term profitable growth and attaining financial targets keeping a clear and dedicated customer focus developing new products, solutions and services improving price quality by applying the SKF platform and segment approach strengthening the product portfolio through greater investment in R&D and through acquisitions focusing on rapidly expanding segments and regions reducing capital employed and fixed costs attracting, retaining and developing the right people

37. 36 19 October 2010 Main initiatives going forward Accelerate profitable growth Reduce cost and eliminate waste Invest for growth One SKF and SKF Care as guiding lights

38. 37 19 October 2010 Main actions going forward Accelerate profitable growth Continue to strengthen the platform/segment approach Increase the development, launch and commercialisation of new offerings (green) Value based selling – using Documented Solutions Programme Strengthen our service business Acquisitions to strengthen platform offer

39. 38 19 October 2010 Main actions going forward Reduce cost and eliminate waste Build on Manufacturing Excellence into other areas - Business Excellence Increased manufacturing and sourcing in Best Cost Countries Reduce product cost through ICR* activities * ICR means Integrated Cost Reduction

40. 39 19 October 2010 Main actions going forward Invest for growth Increase sales and engineering resources Additional factories in growth markets Additional SKF Solution Factories Increase spending in R&D and improve global network - accelerate plans for India and China

41. 40 19 October 2010 Main initiatives going forward Accelerate profitable growth Reduce cost and eliminate waste Invest for growth One SKF and SKF Care as guiding lights

42. 41 19 October 2010 SKF Group – operating margin development

43. 42 19 October 2010 SKF Group – sales development (in local currencies)

44. 43 19 October 2010 New SKF long-term financial targets 15% Operating margin level 8% Annual sales growth (local currencies) 27%ROCE 18% Inventory to sales

45. 44 19 October 2010 Agenda Nine-months report and outlook New financial targets Acquisition of Lincoln Industrial

46. 45 19 October 2010 To equip the world with SKF knowledge SKF Group Vision

47. 46 19 October 2010 What is SKF knowledge?

48. 47 19 October 2010 SKF’s platforms Managing and reducing friction

49. 48 19 October 2010 Increasing need for lubrication systems Increase performance and productivity Improve reliability and component life -Protect in harsh conditions -Reduce catastrophic failures Lower maintenance and service costs -Reduce labour spend -Reduce lubrication consumption Reduce energy consumption Dual-line lubrication systems pumps, reservoirs Progressive lubrication systems Lubricant distributors, metering units Oil and air lubrication systems

50. 49 19 October 2010 Lubrication systems market The lubrication systems market comprises two main technologies: – Oil-based systems – Grease-based systems The total world market incl products and services is estimated to be >20 BSEK The main segments for lubrication systems are: -Heavy industrial machinery (e.g metals, mining, pulp & paper) -Special industrial machinery (e.g machine tools, marine) -Energy (e.g wind, oil & gas) -Off highway -Agriculture

51. 50 19 October 2010 SKF Lubrication Systems Acquisitions Cirval (Argentina)2008 ALS (Canada)2007 Safematic (Finland)2006 Sommers (Sweden)2005 Vogel (Germany)2004 Manufacturing and engineering centres

52. 51 19 October 2010 Acquisition of Lincoln Industrial Lubrication systems is one of SKF’s technology platforms and SKF has improved its offerings in this area in recent years. It is a vital part of SKF’s core competence in the management of friction. Lincoln Industrial is highly complementary to SKF Lubrication Systems when it comes to technology as well as geographical sales coverage and manufacturing footprint, particularly in North America and Asia. Lincoln Industrial is a highly attractive business, with consistent record of strong financial performance, very good margins and strong cash flow. Lincoln Industrial’s consistent financial performance, the outlook and synergies are reflected in the sales price of around USD 1 billion (~10 times EBIT).

53. 52 19 October 2010 Lincoln Industrial Manufacturing and engineering centres 2010:Sales approaching USD 400 m EBIT margin around 24%. Net sales geographical split

54. 53 19 October 2010 Lincoln Industrial’s offer portfolio Selected Applications Food/BeverageHeavy ConstructionWind EnergyGeneral ManufacturingAftermarket Vehicle Services Steel/GlassAgricultureMiningFire/RescueVocational Service Selected Products Solution Spectrum Automated Systems Manually Operated Equipment Increasing Application Complexity Fast Application Engineered to move heavy grease under high pressure in extreme environments for every application

55. 54 19 October 2010 The acquisition is in line with SKF’s strategy Acquisitions are an integral part of the profitable growth strategy. A systematic acquisition process has been established and the strategic targets are identified Acquisition criteria: Strategic fit with clear potential synergies and ability to exploit these in a reasonable timeframe. Strong commitment and ownership by acquiring Division. EPS accretive in the first full year, positive TVA effect in two to three years, including amortization of intangible assets.

56. 55 19 October 2010 Summary of the third quarter Very strong quarter Positive outlook New financial targets Significant acquisition in lubrication systems area

57. 56 19 October 2010 Cautionary statement This presentation 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 annual report (available on www.skf.com) under the Administration Report; “Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis”.

58. 57 19 October 2010