SKF GroupTom Johnstone, President and CEO

September 2012

SKF Group

SKF - A truly global companyEstablished: 1907Sales 2011: SEK 66,216 million, (~ USD 10 bn)Employees 2011: 46,039Production sites: around 130 in 32 countries SKF presence: in over 130 countriesDistributors/dealers:15,000 locationsGlobal certificates:ISO 14001OHSAS 18001 certification

SKF Group

North AmericaLatin AmericaWestern EuropeEastern EuropeMiddle East and AfricaAsia/ PacificNet sales*Average number of employees Tangible asset % of group total SKF 2011(18)(8)(13)(26)(13)(14)(2002)(1998)(25)(14)(19)(10)(12)(9)Sweden(4)(4)(3)(5)(12)(15)(3)(9)(3)(2)(2)(0)(47)(46)(53)(6)(5)(4)(5)(14)(12)(3)(9)(3)(3)(2)(0)(48)(44)(53)* Previously published shares have been restated to reflect customer delivery locations.

SKF Group

Net sales by customer segment 2011AerospaceRailwayOff-highwayTrucksTwo-wheeler and ElectricalIndustrial, generalCars and light vehiclesIndustrial, heavy and specialVehicle Service MarketIndustrial distributionEnergyPreviously published shares have been restated to reflect the new business structure from 2012.

SKF Group

Long-term financial targets

27%Return on capital employed8%Changes in sales in local currency15%Operating margin, level

SKF Group

SKF Group operating margin development%

SKF Group

How did we get there? Divesting and outsourcing component manufacturing, reducing fixed cost and invested capitalManufacturing footprint in best cost countries Reducing working capital Customized solutions, value added products, technology platformsDiversifying growth, faster growing segments and geographiesAcquisitions supporting growth and profitabilitySKF today more robust, more diverse

SKF Group

Growth development by geography Local currencies H1 2012 vs H1 2011Europe -2.3% Asia/Pacific -8.0% Latin America +13.8%Middle East & Africa +2.2% North America +11.6%

SKF Group

SKF demand outlook Q3 2012, regions * Previously published shares have been restated to reflect the total Group business and customer delivery locations.

Sequential trends for: Q2 2012 Q3 2012

Share of net sales2011*Europe44%Asia Pacific28%North America19%Latin America8%Total

Q3 2012 vs Q3 2011-+/-++++/-

SKF Group

SKF sequential demand trend Q3 2012

Share of net sales 2011** Previously published shares have been restated to reflect the total Group business and customer delivery locations.

SKF Group

Main initiatives going forward Accelerate profitable growth

Reduce cost and eliminate waste

Invest in Growth

SKF Group

Accelerate profitable growth- intensify the platform and industry approach- launch more new offerings green and BZ portfolio- strengthen the service business- focus on faster growing regions/ industries- develop other brands

Reduce cost and eliminate waste- Business Excellence throughout the Group- BCC manufcaturing and sourcing- integrated cost reduction activities (ICR)

Invest in growth- Sales and engineering resources- Factories in growth markets- Solution factories- R&D- Acquisitions- New IT systems Main initiatives going forward

SKF Group

SKF platforms managing and reducing friction/energy

Market SEK 320 bn~ USD 50 bn

Market SEK 75 bn~ USD 12 bn

Market SEK 30 bn~ USD 5 bn

Market SEK 70 bn~ USD 11 bn

Market > SEK 40 bn~ USD 6 bnPT

Market SEK 100 bn~ USD 16 bn

SKF Group

SKF platforms managing and reducing friction/energy

Market SEK 320 bn~ USD 50 bn

Market SEK 75 bn~ USD 12 bn

Market SEK 30 bn~ USD 5 bn

Market SEK 70 bn~ USD 11 bn

Market > SEK 40 bn~ USD 6 bnPT

Market SEK 100 bn~ USD 16 bnAddressable market > USD 100 bn

SKF Group

R&D investments and main areasInvestments +30% Same +10%+20% Patents +30%2012+10%Main areasEnvironmentCore technologiesNew productsStrengthen R&D activities in fast growing regionsStrengthen links with universities and high schools

SKF Group

Examples of new products launched in 2012SKF Nautilus

rangeextensionsServo Actuator for industrial applications

Next generation SNL, SE housingsA hand-held, 18-volt, lithium-ion grease gun

SKF SpeedSensor UnitIntegrated monotube sealSKF Compact Wire Steering BearingSKF Solar HubSKF Thruster MonitoringSKF Bus Door Actuator

SKF Group

Investing for the future Mysore, IndiaDalian, ChinaJinan, ChinaBengaluru, India

SKF Group

Acquisitions 2003-2012Identifying gaps and opportunities in all platformsSealsBearingsand units Lubrication systemsServicesMechatronicsSNFA (2006)S2M (2007)QPM (2008)Economos (2006)Macrotech (2006)Baker (2007)PMCI (2007)PB&A (2006)Monitek (2006)Safematic (2006)Vogel (2004)ALS (2007)Sommers (2005)ABBA (2007)Jaeger (2005)PEER (2008)GLO (2008)TCM (2003)Scandrive (2003)Cirval (2008)Lincoln Industrial (2010)GBC (2012)Focus on industrial and aftermarket business.

Technologies/ Products

Geographies

Segments

SKF Group

General Bearing CorporationEstablished in 1955, headquarter in West Nyack, NY, USA.Four factories in China, one ball bearing factory, two tapered roller bearing factories and one precision roller factory. 1,750 employees, 140 are located in USA and 1,610 in China. Sales in 2011: around USD 155 million Focused to serve OEM and end-user customers within the transportation markets: Truck, Trailer, Automotive, and Industrial.Brands:

SKF Group

Strategy for second brands Capture mid-market growth Lower cost manufacturing Global market approach Segment focus - PEER, Industrial segments - GBC, Auto, HD segments

SKF Group

Branding strategy to address the marketSecond brands Strong cost focus Peer/General/Hyatt brands Application specific products Knowledge engineering Documented value Cost reduction BrandHighMiddleLow

SKF Group

BeyondZeroTM0-+BeyondZero

SKF Group

BeyondZero portfolio how it works Criteria Life cycle trade offs Base line comparison CO2 / environmental savings

SKF Group

BeyondZero portfolio - IndustrialSKF Solar Linear Actuator contributes to increasing the energy production from one solar panel which 4.4 tonnes CO2 /yearSKF Energy Monitoring Service for pump systems helped reduce 1,700 tonnes of CO2 emission per year.

SKF ConRo reduced CO2 emissions with 1.5 tonne per unit and year.

SKF Group

BeyondZero portfolio - IndustrialReplacement of hydraulic lifts with two SKF CASM electric cylinders produced a CO2 savings of 4.9 tonnes per year for one machine.

SKF products and solutions for renewable energy help display CO2If SKF were to equip all new motors ranging from sizes 1-50 HP with its current SKF E2 bearing range, a yearly 290,000 tonnes of CO2 emissions would be avoided.

SKF Group

BeyondZero portfolio - Automotive

SKF Group

BeyondZero portfolio - Automotive

SKF Group

Climate strategy BeyondZero TargetsTransport anddistributionRaw material and componentsSKFs own operationsCustomer solutions 100% of SKF's energy intensive suppliers certified according to ISO 50001 Energy Management Standard by 2016. Reduce the total annual energy use of the SKF Group by 5 % below the 2006 level by 2016. Reduce the energy use per production output (value added) by 5% year- over-year during the period (2012-2016). Reducing CO2 emissions/ tonne-kilometre for all transports managed by SKF Logistics Services by 30% compared to 2011 by the end of 2016.

Quadruple (x4) the revenue from the BeyondZero portfolio from 2.5 Billion SEK in 2011 to 10 Billion SEK by 2016.

SKF Group

Key focus areas ahead 2012Managing the uncertain and different demand environment - regions and segmentsProfit and cash flow- inventory management Initiatives and actions to support long-term financial targetsContinue the integration of LincolnBusiness Excellence and competence development Implement the new organization for the Industrial market One SKF and SKF Care as guiding lights

SKF Group

Since 1907 and the invention and patent of the self aligning ball bearing SKF has made an astonishing journey. SKF went global very early and grew at a rapid rate. As early as 1920s, the company was well established in Europe, America, Australia, Asia and Africa. Today when people talk about the importance of the BRIC countries. SKF has been established there for a very long time, e.g Brazil and Russia 1914, China 1916 and India 1923.*****It is critical to have a strong manufacturing footprint in Asia and in 2010 we inaugurated two new factories in India, Haridwar for our two wheeler business and one factory in Ahmedabad for our large size bearings. But only that, we also took decisions to invest in a new seals factory in India, Mysore which now is under construction and step 3 in Dalian, China , where we are building a new factory for medium size bearings.

****When we launched the BeyondZero concept, we had two goals in mind:First, we wanted to focus on reducing the negative environmental impact from our own operations. This meant that we focused on reducing the environmental impact from SKFs operations, such as the carbon emissions from SKF manufacturing but also the carbon emissions from our suppliers.

The second goal was:To increase. the positive environmental impact delivered by SKF solutions through innovating and offering new technologies, products and services with enhanced environmental performance characteristics.

This second goal is really all about helping our customers in all segments and industries to reduce the environmental impact from their products, services and processes. By combining these two goals, BeyondZero is SKFs ambition to make an overall positive contribution towards the environmental challenges faced by the planet. And, ladies and gentlemen, today we will focus on how SKF is meeting this second goal.

SKF products and solutions are qualified into the portolio only after they have satisfied specific performance criteria when compared to a defined baseline, established and demonstrated by using methods such as life cycle assessments.

Basically, we provide positive environmental impacts for our customers in two fundamental ways: First, we design SKF solutions which on their own create significant environmental benefits at our customer. These are called Designed for environment.The Designed for environment category can be illustrated by the E2 bearing, which in itself uses 30% less energy compared to a standard bearing.

Second, we apply SKF solutions to help the enablement of certain technologies, such as: i) renewable energy, or ii) a certain technology in the customers applications. These are called Applied for the environment. The Applied for environment category can be illustrated by the SKF rotor positioning bearing that enables the use of a stop-start system in cars for better fuel economy.

Finally, independent third party reviews will be carried out by our auditors, KPMG.

Lets take a look at some of the products for the industrial market.SKF EMS: In a recent survey with SCA, an SKF customer in the pulp and paper industry, SKF helped them identify a nearly 70% improvement potential in 8 pump systems out of 300 pumps installed in on of their pulp and paper factories. This equals to the reduction of the factory annual electricity demand by up to 2,500MWh or 1% of the factory total electricity use. Converted into a CO2 emission reduction , this equates to a reduction of about 1,700 tonnes* per year that the customer can claim, as well as reduced energy costs. If 500 factories similar to an example case applied the same service the yearly CO2 savings would be 200 000 tonnes.

SKF ConRo extends roll line unit service life by 25% or more and reduces total operating cost of up to 50% per roll line unit which in turn reduces an estimated average of 1.5 tons CO2 per roll per year. In a continuous casting machine with 400 rolls, this means an annual CO2 reduction of approximately 600 tons.If all continuous slab caster mills in China used ConRo, the world would save 100,000 tonnes of carbon emissions.

SKF Solar Linear Actuators: Our tests show that in a case where 58 m2 panels are fitted with an SKF Solar Linear Actuator, CASD-60, there is an increase of the energy production from one solar panel by 5.8 MWh/year. This means that one panel using an SKF solar actuator reduces 4.4 tonnes of CO2. On average, a 15% increase in power generation can be anticipated in comparison to rigid PV solar panel systems. The scale of modern solar parks is often in the order of 100 MW; it is reasonable to assume that actuators are used for a park with 5000 to 10000 solar panels. This means that one modern solar park with 5000 solar panels using our solution reduces CO2 by 220,000 tonnes per year.

SKF CASM electric cylinders are used around the world in a wide range of industries ranging from packaging, factory automation, food and beverage and material handling industries. Normally they replace pneumatic cylinders. However, our customer, Indian Textile Engineers, replaced hydraulic lifts with the CASM and reduced their energy consumption by 7 megawatts. This translates into a savings of nearly 5 tonnes of CO2 for only one machine per year.If 10.000 hydraulic actuators are replaced with this technology in similar cases like for Indian Textiles, the savings would be 26000 tonnes of CO2.

Renewable energy products: As an Applied for the Environment, all SKF product and solutions for the renewable energy segment help to displace tonnes of CO2 everyday they are in operation in wind, solar, and ocean energy applications.

Our E2 bearings reduce friction by 30% and they are found in many applications, including electric motors. According to the book, Walking the Torque, by the Internatinoal Energy Agency, electric motor-driven systems (EMDS) consume more than 40% of global electricity consumption - the largest amount of electricity of any end use We calculate that if our E2 bearings were used in all new motors from sizes 1-50 HP, a yearly 290,000 tonnes of CO2e emissions would be avoided compared to the standard design version.

The SKF bus actuator requires 80 to 90% less energy than a pneumatic system does and because of this, the compressor system size can be reduced to require smaller engine. These two benefits produce almost a 3% improvement in the fuel economy which calculates to 1900 kg CO2/year compared to a bus that uses pressurized air for operating the doors. Not to mention the savings from reduced fuel costs for bus owners.

SKF Rotor Positioning Bearing helps make Stop-Start possible. In dense urban traffic, Stop-Start can reduce fuel consumption and CO2 emissions up to 15%. Based on an annual mileage of 14,500km, this solution saves 75kg CO2 per vehicle per year.

SKF StopGo reduces CO2 emissions by 5 g per kilometre. With an annual mileage of 7875 km, this equates to a reduction of 36 kg/ CO2 per year. If one million motorcycles were equipped with the SKF solution, the reduction would be 36,000 tonnes of CO2 per year. The results are based on a test of a motorcycles of the size 125-150CC used in Indian urban traffic over one year.

The SKF Low Friction Engine Seal reduces friction by up to 55%, which provides a CO2 savings of over 1 g per kilometre. Based on an annual mileage of 14,500km, this equates to a reduction of 14.5 kg/ CO2 per year. If one million cars were equipped with the SKF solution the reduction would be 14,500 tonnes of CO2 per year. Results are applicable to four seals* used in a 4-cylinder gasoline engine mid-size passenger car.

A light commercial vehicle with four SKF Low Weight Hub Bearing Units reduces CO2 by 0.25g CO2 per km. When based on an annual mileage of 14,500km, the saving is 3.6 kg CO2 per year. This equates to a reduction of 3600 tonnes of CO2 per year if one million cars were equipped with the SKF solution.

SKF is committed to improving automotive industry solutionsElectric vehicles offer an efficient and low-CO2 alternative to ICE-powered passenger cars. As electric vehicles gain worldwide market share, the demandfor optimized E-powertrain solutions is also increasing.As a dedicated long-term industry partner, SKF remains committed to improving the efficiency and longevity of automotive products, including powertrains. Subsequently, SKF offers a complete portfolio of E-powertrain solutions that deliver a multitude of production and performance advantages:

SKF climate strategy focuses on 4 areas

These targets are part of SKF partnership with WWF and our participation in the Climate Savers programme