© SKF Group April 19, 2023Slide 1

Industrial Market, Regional Sales and Service

Presented by Vartan VartanianPresident Industrial Market, Regional Sales and Service

© SKF Group

Regional Sales and Service

We realize full life cycle value for industrial systems!

We increase customer productivity through:

Development and delivery of advanced services and engineering products

Innovative industry-leading integrated solutions throughout the life cycle

Global reach through our regional structure and authorized channel partner network

The Power of Knowledge Engineering

CMD 2013

© SKF Group

Regional Sales and Service Business Structure

7 Sales Areas with Global Coverage

Regional Sales and Service

7 Regional Areas

Focused Industries

withStrategic Accounts

Solution,Production,

Product Development

with 23 SKF Solution

Factory locations

Channel and PricingManagement

withdistribution

Industrial Market,

Regional Sales and Service

CMD 2013

© SKF Group

What we focus on

Working to improve customers’ productivity and sustainability around the world with a focus on industrial segments such as Food and Beverage; Marine; Metals; Pulp and Paper; and Mining

A global network – ease of access

Global distribution business

State-of-the-art supply chain management

Driving growth by leveraging SKFtechnology platform offers as well asSKF Solution Factory and Life Cycle Management (AEO)

Operational excellence to drive profitabilityand reduce total cost

Deliver proven value

Profitable growth

CMD 2013

Agenda

Industrial Market, Regional Sales and Service

Agenda

• Global business

• Focused Industries and strategic accounts

• Distribution

• How we achieve operational excellence

• Key business message

Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries

Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development

Global business

Industrial Market, Regional Sales and Service

Agenda

• Global business

• Focused Industries and strategic accounts

• Distribution

• How we achieve operational excellence

• Key business message

Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries

Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development

© SKF Group

RSS sales share and proportion by geography in 2012

Central East Europe &Middle East Africa

Latin America

China

North Europe

North America

S&SE Asia

West Europe

Net sales MSEK: 25,329

Operating margin: 12.5 %

Numbers of employees: 6,479 39% of SKF Group’s total net sales

CMD 2013

© SKF Group

Close to customers almost everywhere in the world

Countries with Regional Sales and Service Sales business unit CMD 2013

© SKF Group April 19, 2023Slide 9

Regional Sales and Service - global business coverage

Industrial Distributors

Customized SealsMarine

Marine Headquarters

MarineSales Agents

MarineService Stations

Product service division

Powertransmission

Customized seals

System/product development

Warehouses

Remote diagnostic services

SKF Solution Factory

Condition monitoring centers

© SKF Group April 19, 2023Slide 10

Regional sales and service in China

Distributors

Customized Seals

Warehouses Remote diagnostic services

SKF Solution FactoryMarine Headquarters

MarineSales Offices

Industrial Service Center

© SKF Group April 19, 2023Slide 11

Focused Industries and strategic accounts

Industrial Market, Regional Sales and Service

Agenda

• Global business

• Focused Industries and strategic accounts

• Distribution

• How we achieve operational excellence

• Key business message

Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries

Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development

© SKF Group

Focused Industries and strategic accounts

OEM customers examples

End user customers examples

Deliver SKF equipped solutions

Equip with SKF knowledge

Optimizing thelife cycle

Marine MiningPulp and Paper Food and BeverageMetals

CMD 2013

© SKF Group

Technology upgrade in wafer ovens

Wafer oven application in a bakery:A challenge for the end-user• Frequent re-lubrication required with costly high temperature lubricants• Limit to increase oven throughput, 446 °F near current grease performance

SKF SolutionSKF integral wafer oven units

Customer value• 5 years re-lubrication-free operation running 24/7, reducing 150 hours of labor and 88 lbs/yr/oven• Increased productivity through elimination of 26 hours of planned downtime• Increased temperature, 50 to 59 °F, allowed higher speed and increased throughput

SKF technologies improved reliability, cost control and safety for a bakery group.

SKF contributed to the design and development of a new, higher performing proving oven for the OEM supplier. Optimizing the

life cycle

CMD 2013

© SKF Group

A full asset life cycle approach

Deliver SKF equipped solutions

Equip with SKF knowledge

Optimizing thelife cycle

Cost in the asset life cycle*

3 %

12 %

35 %

50 %

* Source: Specht, G.; Beckmann, Ch.; F&E-Management. Schaeffer-Poeschel Verlag, Stuttgart 1996

CMD 2013

© SKF Group

Strategic accounts: The engines for profitable growth

Accelerate profitable growth

• Deeper knowledge of customer and their industry: Replication of solutions

• Stronger relationships

• More involvement in new projects: Innovations

• More value creation and capturing through full life cycle approach

CMD 2013

Distribution

Industrial Market, Regional Sales and Service

Agenda

• Global business

• Focused Industries and strategic accounts

• Distribution

• How we achieve operational excellence

• Key business message

Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries

Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development

© SKF Group

29 %

Net sales Industrial Distribution within 2012

Industrial Distribution within SKF Group sales:

CMD 2013

© SKF Group April 19, 2023Slide 19

Industrial Distributors

Industrial Distribution NetworkMore than 6000* locations

LAM400 Branches

NAM2500 Branches

Europe West900 Branches

CEEMEA900 Branches

China250 Branches

Europe North600 Branches

S&SE Asia550 Branches

* Numbers are Industrial Distributors owned branches, not including Certified Rebuilders and sub-distributors

© SKF Group

Global programmes for stronger growth in Industrial Distribution

• Channel Management: Increase level of mutual engagement and joint activities toward final customers

• Education: Equip SKF and distributors' employees with arguments to defend SKF value proposition

• Supply Chain efficiency: Cost savings in supply chain and inventory level optimization

• Differentiation: Certified programs and Solution Factory

CMD 2013

© SKF Group

Channel management

Profitable growth with Distributors

Joint planning and acting

Set the basics

Understand

distributor drivers

CMD 2013

© SKF Group

Process integration activities with distributors to improve supply chain efficiency

Goals:

• Lower administration cost

• Optimize capital employed

• Reduce lost sales

• Improve service level

Through:

• IT Integration

• Inventory Management

• Collaborative forecasting

CMD 2013

How we achieve operational excellence

Industrial Market, Regional Sales and Service

Agenda

• Global business

• Focused Industries and strategic accounts

• Distribution

• How we achieve operational excellence

• Key business message

Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries

Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development

© SKF Group

Delivering SKF value consistently

Customer

Challenges

• Raise energy efficiency

• Increase productivity

• Decrease maintenance

• Optimise designs

• Reduce cost

• …

Evaluation ofvalue

SKF SolutionFactory

Industries

Technology

SKF Sales, Customer Service, SKF Distributor

CMD 2013

© SKF Group

Understanding sales operations to achieve operational excellence in sales

Face to face time customersAvailability

Sal

es c

apac

ity

Off times and trainings

Potentialsales capacity

Activities not related to sales

100 %

CMD 2013

© SKF Group

Customer visits: A key to grow opportunities and success

Time

Sales visits

Business won

Number of opportunities measured

Time

CMD 2013

© SKF Group

‘Unbeatable’ Customer Service

One of the Strategic Programs for 2016:‘Enhance the role of Customer Service & unlock the full potential’

The overall objectives for Customer Service are to:

• Increase customer satisfaction, loyalty and retention

• Contribute to growing sales above market growth

• Reduce waste and effective use of resources: “One Industrial Customer Service”

We want to ‘raise the bar’ going forward – to further differentiate SKF in the marketplace

A key role in driving customer satisfaction & loyalty

Customer Service team in Indonesia

Customer Service team in Hungary

CMD 2013

© SKF Group

Latest innovative technologies

System 24

Hose reels TLRC

and TLRS Series

SKF ChainLube SKF

Telescopic pillar

SKF Acoustic Emission

Enveloping

SKF Machine Condition Indicator

SKF Static Motor

Analyzer Baker DX

SKF Thruster

Monitoring

SKF Extreme temperature

bearings

Hydraulic seals

SKF FX Bushings

SKF Extended Life

plain bearing

New range of air-driven hydraulic

pumps and oil injectors

BeyondZeroTM

ServoActuator

CMD 2013

© SKF Group

Validating savings at industrial customers

Verified customer savings: 24 billion SEKVerified savings in 2012: 4 billion SEK

Energy and sustainability calculations:~ 1,000 verified cases of reduction in CO2

Total accepted/verified cases: ~40,000Coming from more than 25 industrial segments

5 languages 51 currencies can be converted

SKF Documented Solution Program

CMD 2013

© SKF Group April 19, 2023Slide 30

Key business message

Industrial Market, Regional Sales and Service

Agenda

• Global business

• Focused Industries and strategic accounts

• Distribution

• How we achieve operational excellence

• Key business message

Focused Industries and the Marine business by Thomas Fröst, Director Focused Industries

Solution, Production and Product Development in the SKF Service business by Christian Gill, Director Solution, Production and Product Development

© SKF Group

Key business message

• Driving profitable sales growth in all 7 Sales Areas

• Focused Industries will expand SKF offerings and value propositions

• Growing distribution network as a key to customers world wide

• Service business is a driver in the asset life cycle management approach

• Strategic Accounts accelerating growth

• Innovations driving long term sustainable profitable business

• Supply chain value will be continuously increased

CMD 2013