19 April 2012

1

SKF First-quarter results 2012

Tom Johnstone, President and CEO

19 April 2012

19 April 2012

3Highlights Q1 2012

•SKF signed an agreement to acquire the US-based General Bearing Corporation for around USD 125 million on a cash and debt free basis.

•SKF received an order worth around SEK 350 million from Vestas for the delivery of main shaft solutions to the Vestas V112-3.0 MW turbine.

•SKF was awarded two contracts totaling around SEK 50 million from Siemens Rail Systems for railway projects in Europe. SKF will deliver axle

boxes and wheel set bearing units.

•SKF received orders from one major metal industry customer for SKF ConRo Compacts worth EUR 1.8 million.

•SKF signed a three-year contract with Scania. The contract includes bearings for truck wheel end units and transmissions to Scania production facilities in Brazil.

Acquisition:

New businesses:

19 April 2012

4

• inaugurated two SKF University Technology Centres:

• held the SKF North American Distributor convention in Florida, and participated in a maintenance fair in Sweden.

• awarded the 140,000 certificate from the SKF Distributor College

• launched a range of informational and calculation-focused apps for iPhone and iPad.

Highlights Q1 2012

SKF:

Luleå University of Technology, for condition monitoring and asset management

Chalmers University of Technology, for sustainability and environment

Fot

o: K

arl W

illia

m

Fot

o: R

obin

Ols

son

19 April 2012

5Examples of new products launched in 2012

SKF Nautilus

rangeextensions

Servo Actuator for industrial applications

Next generation SNL, SE housings

A hand-held, 18-volt,

lithium-ion grease gun

SKF SpeedSensor Unit

Integrated monotube seal

SKF Compact

Wire Steering Bearing

SKF Solar Hub

SKF Thruster Monitoring

SKF Bus Door Actuator

5

19 April 2012

6SKF Group Q1 2012

Financial performance Q1 2012 Q1 2011Net sales, SEKm 16,931 16,702Operating profit,SEKm 2,140 2,504Operating margin, % 12.6 15.0Profit before tax, SEKm 1,981 2,318Cash flow, SEKm 696 372

Organic sales growth in local currency:SKF Group: +1.1%Europe: -1.2% Industrial market, Strategic Industries: +2.5% North America:+14.7% Industrial market, Regional Sales and Service:+3.0%Asia: -8.1% Automotive: -4.2%Latin America:+11.1%

Key points Sales were relatively unchanged y-o-yManufacturing was significantly lower y-o-yInventories were reduced to 20.5% of sales

19 April 2012

7Organic sales growth in local currency

0

5

10

15

20

25

20122010 2011

% change y-o-y

19 April 2012

8Sales volume

-5

0

5

10

15

20

25

% change y-o-y

2010 2011 2012

19 April 2012

9

Europe-1.2%

Asia/Pacific -8.1%

Latin America +11.1% Middle East

& Africa +2.5%

North America +14.7%

Growth development by geography Organic growth in local currency Q1 2012 vs Q1 2011

19 April 2012

10

-5

0

5

10

15

2010 2011 Q1 2012

Growth in local currency

% y-o-y

Acquisitions/DivestmentsOrganic growth

14.2% 16.3% 1.0%

Long-term target: 8% per annum

Total growth

4.8%

11.5%

0.0%

14.2%

-0.1%1.1%

19 April 2012

11Components in net sales

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

5.3 16.6 19.0 16.3 20.1 12.6 6.2 0.0 -0.8

0.0 0.0 0.0 0.0 5.0 4.4 5.1 4.8 -0.1

-0.3 -0.5 0.3 0.9 1.3 1.6 2.0 2.8 1.9

5.0 16.1 19.3 17.2 26.4 18.6 13.3 7.6 1.0

-7.7 -5.2 -3.2 -6.2 -10.8 -12.2 -6.3 -2.1 0.4

-2.7 10.9 16.1 11.0 15.6 6.4 7.0 5.5 1.4

Percent y-o-y

Volume

Structure

Price/mix

Sales in local currency

Currency

Net sales

2010 2011 2012

19 April 2012

12Operating profit

0

300

600

900

1 200

1 500

1 800

2 100

2 400

2 700

SEKm

2010

Restructuring and one-time items

2011 2012

19 April 2012

13Operating margin

%

0

2

4

6

8

10

12

14

16

2010

Restructuring and one-time items

2011

Long-term target level: 15%

2012

19 April 2012

14Operating margin

0

2

4

6

8

10

12

14

16

2010 2011 Q1 2012

%

Restructuring and one-time items

* Excluding restructuring and one-time items

14.7*

Long-term target level: 15%

14.2*

13.8 14.512.6

19 April 2012

15

0

3

6

9

12

15

18

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating margin per business area

Strategic Industries

Regional Sales and Service

Automotive

%

2010 2011 2012

19 April 2012

16

SEKm 2012 2011

Net sales 16,931 16,702

Operating profit 2,140 2,504

Operating margin, % 12.6 15.0

Profit before taxes 1,981 2,318

Net profit 1,341 1,620

Basic earnings per share, SEK 2.84 3.44

Cash flow, after investments before financing

696 372

First quarter 2012

19 April 2012

17

18

19

20

21

22

23

24

25

Inventories as % of annual sales

% Long-term target level: 18%

2010 2011 2012

19 April 2012

18Cash flow, after investments before financing

-6 000

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

SEKm

2010 2011 2012

* SEK 798 million, excluding SEK 6,799 million for the acquisition of Lincoln.

*

19 April 2012

19Return on capital employed

0

5

10

15

20

25

30

2010 2011 Q1 2012

ROCE: Operating profit plus interest income, as a percentage of twelve months rolling average of total assets less the average of non-interest bearing liabilities.

%

21.924.0

Long-term target: 27%

23.6

19 April 2012

20Net debt

-18 000

-16 000

-14 000

-12 000

-10 000

-8 000

-6 000

-4 000

-2 000

0

SEKm

AB SKF, dividend paid (SEKm):2010 Q2 1,5942011 Q2 2,277

2010 2011

Cash out fromacquisitions (SEKm):

2010 6,799

2012

Net debt: Loans and net provisions for post-

employment benefits less short-term

financial assets excluding derivatives.

19 April 2012

21

0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017 2018

Debt structure

Maturity years, EURm

396

100100

• Credit facilities:EUR 500 million 2014

SEK 3,000 million 2017

• No financial covenants nor material adverse change clause

130

500

110

0

19 April 2012

22Dividend proposal

AB SKF’s Board proposes to the Annual General Meeting an increase of the dividend by 10%, giving a dividend of

SEK 5.50 (5.00) per share.

The Annual General Meeting will be held on 25 April.

19 April 2012

23April 2012: Outlook for the second quarter 2012

Demand compared to the second quarter last yearThe demand for SKF’s products and services is expected to be slightly higher for the Group. It is expected to be relatively unchanged in Europe and Asia, and significantly higher in North America and Latin America. The demand is expected to be slightly higher for Strategic Industries and Regional Sales and Service and relatively unchanged for the Automotive.

Demand compared to the first quarter 2012The demand for SKF’s products and services is expected to be slightly higher for the Group. It is expected to be relatively unchanged in Europe, slightly higher in North America and higher in Asia and Latin America. The demand is expected to be slightly higher for all business areas.

Manufacturing levelThe manufacturing level is expected to be lower year on year but higher compared to the first quarter.

19 April 2012

24Demand outlook Q2 2012, regions (based on current assumptions)

Sequential trends for: Q1 2012 Q2 2012

Share of net sales2011

Europe 46%

Asia Pacific 26%

North America

19%

Latin America 6%

Total

Q2 2012 vs Q2 2011

+/-

+/-

+++

+++

+

19 April 2012

25Demand outlook Q2 2012, business areas (based on current assumptions)

Sequential trends for Q2 2012

Share of net sales2011

Strategic Industries

31%

Regional Sales and Service

39%

Automotive 27%

Total

Q2 2012 vs Q2 2011

+

+

+/-

+

19 April 2012

26

5%

26%

18%

13%

10%

10%

6%

3%

5%

4%

Trucks

Industrial Distribution

Industrial OEM, General + Special

Cars

Vehicle Service Market

Industrial OEM, Heavy + Off-

highway

Energy

Two-wheelers and Electrical

Aerospace

Railway

Sequential volume trend Q2 2012, main segments (based on current assumptions) Share of net sales

2011*

* excluding Lincoln

19 April 2012

27Guidance for the second quarter 2012

• Tax level: around 30%

• Financial net for the second quarter:Around SEK -175 million

• Exchange rates on operating profit versus 2011Q2: SEK 125 millionFull year: SEK 200 million

• Additions to PPE: Around SEK 2.0 billion for 2012

Guidance is approximate and based on current assumptions and exchange rates

19 April 2012

28Key focus areas ahead 2012

• Managing the uncertain and different demand environment

-regions and segments

• Profit and cash flow- inventory management

• Initiatives and actions to support long-term financial targets

• Continue the integration of Lincoln

• Business Excellence and competence development

• Implement the new organization for the Industrial market

One SKF and SKF Care as guiding lights

19 April 2012

29Cautionary 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”.

19 April 2012

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