1. 2007-01-30 The SKF Group Year-end result, 2006 Tom Johnstone, President and CEO

2. 2 2007-01-30 MSEK20062005 Net sales13,89512,648 Operating profit1,8581,268 Operating margin13.4%10.0% Profit before taxes1,8461,275 Net profit1,257862 Basic earnings per share, SEK2.671.85 Cash flow after investments before financing 1,627*529 Fourth quarter 2006 * including acquisitions of MSEK 461 and Ovako Cash proceeds of MSEK 1,217

3. 3 2007-01-30 MSEK20062005 Net sales53,10149,285 Operating profit6,7075,327 Operating margin12.6%10.8% Profit before taxes6,3875,253 Net profit4,4323,607 Basic earnings per share, SEK9.487.73 Cash flow after investments before financing 2,231*2,430 Year-end result 2006 * including acquisitions of MSEK 2,129 (418) and Ovako Cash proceeds of MSEK 1,217

4. 4 2007-01-30 Operating margin % 2003 20042005 2006

5. 5 2007-01-30 Operating margin % 10.4 %* 11.3 %* *excluding income from the jointly controlled company Oy Ovako Ab 8.0 % 12.6 % 10.8 % 9.9 %

6. 6 2007-01-30 Operating margin per division Industrial Service Automotive % 2004 2005 2006

7. 7 2007-01-30 Sales in local currencies (excl. structural changes) % change y-o-y 2003 20042005 2006

8. 8 2007-01-30 Growth development / local currency % Y-o-Y Acquisitions / Divestments Organic growth 7.3 5.2 11.8 7.5

9. 9 2007-01-30 Net sales development per quarter Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 4.88.99.610.28.37.65.11.36.02.53.38.8 0.10.02.22.02.30.2-2.9-3.7-4.9-0.51.14.6 1.11.82.34.23.6 2.12.62.92.0 2.3 6.010.714.116.414.211.44.30.24.0 6.415.7 -4.6-2.3-2.9-3.8-3.20.23.29.48.01.0-2.1-5.8 1.48.411.212.611.011.67.59.612.05.04.39.9 Percent y-o-y 2004 Volume Structure Price / Mix Sales in local currency Currency Net sales 2005 2006

10. 10 2007-01-30 Growth development/local currency 2006 vs 2005 Europe 6.4% North America 3.6% Asia 16.1% Latin America 6.3%

11. 11 2007-01-30 Industrial Division Acquisitions SNFA John Crane's lubrication systems business (SKF Safematic Inc.) MSEK20062005 Net sales17,08314,750 Sales incl. intra-Group sales26,60023,616 Operating profit3,0082,354 Operating margin11.3%10.0% Net sales growth 15.8% organic growth 11.9% structure 4.0% currency effects -0.1% New factories Dalian, China - large size bearings Pinghu, China - electromechanical actuators and actuation systems Restructuring charges, impairments and write-offs In Q4 2006, MSEK 210

12. 12 2007-01-30 Service Division Acquisitions Precision Balancing & Analyzing (PB&A) Monitek Australia RC DEI Norge AS PMCI (in January 2007) MSEK20062005 Net sales17,67816,115 Sales incl. intra-Group sales19,34417,653 Operating profit2,3162,072 Operating margin12.011.7 Restructuring charges and write-offs In Q4 2006, MSEK 20 Net sales growth 9.7% organic growth 9.6% structure 0.2% currency effects -0.1%

13. 13 2007-01-30 Automotive Division Acquisitions Economos Macrotech Polyseal Inc. MSEK20062005 Net sales18,25517,423 Sales incl. intra-Group sales21,91920,990 Operating profit999560 Operating margin4.62.7 New factories Jakarta, Indonesia - small deep groove ball bearings Shanghai, China - bearing Busan and Taegu, Korea - bearing and seals Net sales growth 4.8% organic growth 2.2% structure1.9% currency effects 0.7% Restructuring charges, impairments and write-offs In Q4 2006, MSEK 170

14. 14 2007-01-30 Six Sigma 3 Dimensions: ”Standard” Six Sigma, Design for Six Sigma, Lean Six Sigma 2006 status: 205 Black Belts 1,135 Green Belts 400 + projects (total 760 projects) Savings in 2006: approximately MSEK 200

15. 15 2007-01-30 Cash flow, after investments before financing MSEK 20042005 2006 Cash out from acquisitions: 2006 MSEK 2,129 2005 MSEK 418 2004 MSEK 644 Cash from Ovako in Q4: 2006 MSEK 1,217

16. 16 2007-01-30 Cash flow, after investments before financing excl. acquisitions and cash effects from Ovako sale MSEK 20042005 2006

17. 17 2007-01-30 Net cash MSEK 2003 AB SKF, dividend paid: 2003 Q2, MSEK 911 2004 Q2, MSEK 1,138 2005 Q2, MSEK 1,366 2006 Q2, MSEK 1,821 2004 Q2, Pension: MSEK 3,100 2005 Q2, Redemption, MSEK 2,846 2004 (Short-term financial assets - loans) 2005 2006

18. 18 2007-01-30 Inventories as % of annual sales % 2003 20042005 Target, end 2007 - 18% 2006

19. 19 2007-01-30 SKF capital structure The AB SKF Board proposes the AGM to decide on: 1. a 12.5% increase in the dividend, SEK 4.50 per share 2. a share split 2:1 combined with an automatic redemption procedure of one share for SEK 10 3. a mandate to the Board to repurchase up to 5% of the company's share Adding up to a total distribution to shareholders of SEK 6.6 billion

21. 21 2007-01-30 Financial targets 2003 -2006 Operating margin10%level Growth in local currencies 6%per annum Return on capital employed20% Inventories18%(2007)

22. 22 2007-01-30 Financial targets 2003 -2006 Operating margin10%level Growth in local currencies 6%per annum Return on capital employed20% Inventories18%(2007)on plan

23. 23 2007-01-30 Financial targets 20032007 -2006- long term Operating margin10% level 12% level Growth in local currencies 6% per annum 6-8% per annum Return on capital employed20%24% Inventories18% (2007) 18% (2007) Gearing < 50% around 50%

24. 24 2007-01-30 Financial targets Operating margin level 12% Focus on positive price mix - new products and solutions - eliminate loss making business Operational efficiency, utilisation and flexibility Increased production in best cost countries Reduced purchasing cost Six Sigma

25. 25 2007-01-30 Operating margin - a longer perspective % 1993 - 2003 Excluding income from Ovako

26. 26 2007-01-30 Operating margin - a longer perspective % 2004-2006 Excluding income from Ovako 1993 - 2003

27. 27 2007-01-30 Operating margin - a longer perspective % 2004-2006 New target level Excluding income from Ovako 1993 - 2003

28. 28 2007-01-30 Financial targets Growth in local currencies 6-8% * Platform/segment approach to continue to be strengthened - organic investments - acquisitions - increased R&D spending - new products/solutions Focus on fast growing regions and segments - BRIC economies - industrial segments * Growth target 2/3 rd organic, 1/3 rd acquisition

29. 29 2007-01-30 Growth in local currencies – a longer perspective %

30. 30 2007-01-30 Financial targets ROCE 24% Continued focus on operating capital reduction in % of sales - inventory and accounts receivables - fixed assets Improved profit

31. 31 2007-01-30 ROCE – a longer perspective % As from 2003, restated according to IFRS except for financial instruments As from 2005, financial instruments accounted for in accordance with IFRS

32. 32 2007-01-30 Financial targets 20032007 -2006- long term Operating margin10% level 12% level Growth in local currencies 6% per annum 6-8% per annum Return on capital employed20%24% Inventories18% (2007) 18% (2007) Gearing < 50% around 50%

33. 33 2007-01-30 January 2007: Outlook for the first quarter 2007 (compared to the fourth quarter 2006) The market demand for SKF's products and services in the first quarter 2007 is expected to be slightly higher. The demand is expected to be higher in Europe and Latin America, significantly higher in Asia and to be unchanged in North America. The demand for the Industrial and Service Division's products and services is expected to be higher and for the Automotive Division is expected to be slightly lower. The manufacturing level for the first quarter of 2007 will be unchanged compared with the fourth quarter 2006 and higher compared with the first quarter 2006.

34. 34 2007-01-30 Volume development Daily volume trend for: Q4 2006 Q1 2007 Net sales 2006 Europe 56% North America 19% Asia Pacific 18% Latin America 6% Total Outlook Q1 2007 vs 2006 + - +++ ++ +

35. 35 2007-01-30 Guidance 2007 Underlying tax level: around 32-33% Financial net: Q1 around MSEK 75 annual level towards year end around MSEK 450 Exchange rates: Q1: a negative effect of approximately MSEK 200 Full year:a negative effect of approximately MSEK 550 Additions to property, plant and equipment: around the same level as in 2006, above depreciation. Guidance based on current assumptions and exchange rates

36. 36 2007-01-30 Cautionary statement This report 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 20- F report on file with the SEC (United States Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk Factors".