Alrik Danielson, President and CEO SKF Q3 results 2016 Alrik Danielson, President and CEO

Q3 Summary Alrik Danielson, CEO 1 Q3 Summary Alrik Danielson, CEO

10.1% Operating margin* Q3 summary Total sales in line with our expectations Sales SEK 17 912 M, -2.5% compared with Q3 2015, organic sales -0.6% Operating profit, excluding one-time items SEK 1 811 M (1 976) Operating margin, excluding one-time items 10.1% (10.8) Cash flow SEK 1 554 M (1 808) Profit before tax SEK 2 049 M (1 348) 10.1% Operating margin* * Excluding one-time items

Sales development by geography Organic growth in local currency Q3 2016 vs Q3 2015 Europe -0.6% North America -3.5% Asia/Pacific +3.8% Latin America -6.5% Middle East & Africa +0.3%

Sales development by Customer Industry

SKF technologies in new generation of Scania trucks SKF solutions contribute to improved comfort and fuel efficiency in Scania’s new generation of trucks SKF provides gearbox bearings, prop-shaft bearings and engine bearings and seals. The tailor-made wind deflector, which uses linear actuation technology to allow for ease of adjustment, is also being supplied by SKF. Updated front- and rear-wheel truck hub units, which reduce friction by up to 30%, compared to standard wheel bearing sets.

Collaboration agreement with GE Oil & Gas for active magnetic bearing applications Collaboration agreement widens scope of use for active magnetic bearings for turbo machinery within the oil and gas sector. Non-exclusive, license-based collaboration agreement. SKF provides GE with front-end engineering design to installation, testing and service to customers. Basis for future collaboration in active magnetic bearings into other GE Oil & Gas turbo machinery, such as steam and gas turbines.

New business SKF´s technology in Metsä Group´s pioneering bioproduct mill Eight-tonne bearing for mining application Bearings and housing to Chilean pulp and paper manufacturer Bogie components for major Algerian rail freight project Wheel hub bearing units for Alfa Romeo Giulia

New products SKF spherical roller bearings for wind turbine main shafts Simplex intermediate shaft bearing for marine Vibracon for marine SKF Dynamic Stabilizer Cover for marine SKF centrifugal Lip Seal for railway

Q3 results – the details Christian Johansson, CFO 2 Q3 results – the details Christian Johansson, CFO

Sales development 2015 2016 Q3 Q4 Q1 Q2 Organic -4.7 -5.2 -6.1 -4.4 Percent y-o-y Q3 Q4 Q1 Q2 Organic -4.7 -5.2 -6.1 -4.4 -0.6 Structure -0.8 -1.0 -2.0 Currency 8.8 4.7 -3.0 +0.1 Net sales 3.3 -1.5 -8.9 -8.0 -2.5

Organic sales growth

Operating profit excluding one-time items

Operating profit

Operating performance by segment Industrial Net sales SEK 12 351 M Organic sales -2.8% Operating margin* declined to 11.7% Automotive Net sales SEK 5 556 M Organic sales +4.4% Operating margin* improved to 6.6% * Excluding one-time items

SKF Group – Q3 2016 Financial performance (SEKm) 2016 2015 Net sales 17 912 18 367 Cost of goods sold -13 416 -13 849 Gross profit 4 496 4 518 Gross margin, % 25.1 24.6 Selling and administrative expenses -2 317 -2 698 Other operating expenses 12 5 Operating profit 2 191 1 825 One-time items 380 -151 Operating profit excl. one-time items 1 811 1 976 Operating margin, % 12.2 9.9 Operating margin excl. one-time items, % 10.1 10.8 Financial income and expense, net -142 -477 Profit before taxes 2 049 1 348 Taxes -660 -573 Net profit 1 389 775 Basic earnings per share, SEK 2.97 1.59

Cost management Continuous reduction in fixed cost, fixed cost index decreased to 97 in Q3 (Q4 2014=100) The number of employees increased by 203 in the quarter – mainly temporary employees and agency personnel Activity-based cost reductions continue with high focus Fixed cost index: 97

Cash flow after investments before financing*

Net debt reduced by 1.4 bn in the quarter

Changes to the US pension plan Defined benefit plans closed as of December 31, 2016 New defined contribution plan in place Financial effects: Q3 operating income: + SEK 618 M (curtailment gain) Q3 Cash flow: - SEK 613 M, (cash contribution to the plan, net of taxes) USD 10 M reduced cost in 2017

Net working capital 30.3% of annual sales – negative currency effect of 1.1 pp.

Guidance for 2016* Q4 2016: Financial net: around -225 million Currency impact on the operating profit is expected to be around +/- 0 million compared with 2015 based on exchange rates per June 30. 2016: Tax level: around 32% for 2016, excluding effects from divestments Additions to property, plant and equipment: around 2,000 million for 2016 * Guidance is approximate and based on current assumptions and exchange rates.

SKF demand outlook - Definition The demand outlook for SKFs products and services represents management's best estimate based on current information about the future demand from our customers. The demand outlook reflects the expected volume development adjusted for acquisitions/divestments in the markets where our customers operate.

October 2016: SKF demand outlook Q4 2016 Demand compared to the fourth quarter 2015 The demand for SKF’s products and services is expected to be relatively unchanged for the Group and for Industrial. Demand for Automotive is expected to be slightly higher. Demand is expected to relatively unchanged in Europe, lower in North America, slightly higher in Asia and higher in Latin America. Demand compared to the third quarter 2016 The demand for SKF’s products and services is expected to be relatively unchanged for the Group including both Industrial and Automotive. Demand is expected to be slightly higher in Europe, lower in North America and relatively unchanged in Asia and in Latin America.

Financial calendar Roadshow London & Paris November 2 & 3 Report on the fourth quarter February 2 Annual Report March Annual General Meeting March 29 Capital Markets Day April 6

SKF Q3 results 2016 Q & A

Cautionary 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”.