The SKF GroupFirst-quarter result 2003

Sune Carlsson, President and CEO

Net sales 10 541 10 665 -1.2%

Operating profit 944 903 +4.5%

Operating margin 9.0% 8.5%

Profit before taxes 802 761 +5.4%

Net profit 562 529

Earnings per share, SEK 4.94 4.64 +6.5%

Cash flow* 47 -112

*after investments before financing

MSEK 2003 2002

Result for the first quarterSKF Group

0100200300400500600700800900

1 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

1999 2000

Profit before taxes excl. non-recurring items

2001

MSEK

2002 2003

SKF Group

0

1

2

3

4

5

6

7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

SEK

Earnings per share

1999 2000 2001 2002 2003

SKF Group

0

2 000

4 000

6 000

8 000

10 000

12 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Net salesMSEK

1999 2000 2001 2002 2003

SKF Group

-6

-4

-2

0

2

4

6

8

10

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

% change y-o-y

Sales in local currency

2000 2001 2002 2003

SKF Group

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

0.3 0.4 0.4 1.0 1.4 1.9 2.0 1.4 0.7

1.1 - 2.7 - 3.2 - 3.8 - 7.3 -0.5 3.3 3.9 6.2

1.9 1.9 1.6 2.1 1.5 1.4 1.2 1.7 1.2

3.3 - 0.4 - 1.2 - 0.7 - 4.4 2.8 6.5 7.0 8.1

7.7 11.1 8.9 6.7 2.2 -3.7 -8.3 -10.8 -9.3

11.0 10.7 7.7 6.0 - 2.2 -0.9 -1.8 -3.8 -1.2

Structure

Volume

Price / Mix

Sales in local currency

Currency

Net sales development per quarter

2002

Net sales

2001Percent

y-o-y Q1

2003

SKF Group

0

1

2

3

4

5

6

7

8

9

10

11

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

%

Operating marginexcl. non-recurring items

1999 2000 2001 2002 2003

SKF Group

0

2

4

6

8

10

12

14

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating margin per division

2001

IndustrialService

Aero andSteel

ElectricalAutomotive

%

20022000 2003

SKF Group

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000

5 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2000 2001

Accumulated change in the number of employees

2002

acquisitions

capacity adjustmentand restructuring

Employees

2003

SKF Group

-200

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Cash flow after investments before financing

2000

MSEK

1999 2001 2002 2003

SKF Group

18

19

20

21

22

23

24

25

26

27

%

1999 2000 2001

Inventories as % of annual sales

2002 2003

Target: 20 %

SKF Group

Additions to tangible assets

0

500

1 000

1 500

2 000

MSEK Depreciation according to plan

1999 2000 2001 2002March2003

SKF Group

Net cash*

-7000

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

1999 20022000 2001

Mkr

SKF Group

2003

*Short-term financial assets - Loans

Volume trend, bearings

Europe 55 %

26 %

13 %

4 %

North America

Asia Pacific

Latin America

Externalsales 2002 April 2003Jan 2003

SKF Group

Volume trend, bearings

Automotive 32

4

32

Electrical

Service

Externalsales 2002

23Industrial

Aero (excl.forging and steel) 5

Jan 2003 April 2003

SKF Group

Outlook April 2003

The overall market demand for the Group's products and services is expected to remain relatively unchanged in the second quarter.

Manufacturing levels which were higher thansales in the first quarter will be adjusteddownwards during the second quarter.

SKF Group

SKF GroupTarget

10 % operating margin level

10 BSEK additional annual net sales

SKF Group Focused areas

Drive operational excellence

Grow new markets and segments

Introduce new products and solutions

Develop our people and competencies

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 form 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".

Cautionary Statement

SKF Group