6 Renewable Energy Bernd Stephan Director Business unit Renewable Energy

© SKF Group Longer term trends in new energy installations Annual new installations in gigawatt globally Source: Michael Liebreich, keynote presentation at Bloomberg BNEF Summit, New York, April 2014 CMD 2014

© SKF Group Trends in ocean energy With 70% of the planet covered in water, ocean energy is an untapped sustainable energy resource that will benefit future generations, but the levellized cost of energy (LCOE) is still at 4–5 times the cost of traditional energy. SKF is actively involved in the emerging wave and tidal energy sectors with our 5 product platforms Major OEMs are now taking equity stakes in most advanced technology developers Source: Carbon Trust analysis, 2011 CMD 2014

© SKF Group Trends in wind energy Commercial trends Onshore wind energy is increasingly cost-competitive in comparison with conventional energy Offshore wind energy is coming back on track Expansion from traditional markets to new emerging markets Increasing and more competitive aftermarket Technology trends New technology in development Improved requirements for controlled processes and establishment of wind industry standards Longer life cycles with turbine upgrades Floating offshore turbine technology in development CMD 2014

© SKF Group Biggest wind energy market – China Steady growth, and operations and maintenance expansion The Chinese global wind market, representing over 40% of the global wind market, is starting to mature with a more moderate and steady growth development A maturing market will lead to fewer but stronger turbine manufacturers Large potential for the aftermarket due to increasing numbers of wind turbines coming out of warranty over the coming years Increasing environmental concerns support investments in wind energy and other renewables in the coming years SKF is well-positioned at leading wind turbine and gearbox customers in China with local engineering team and local manufacturing Source: MAKE Consulting, June 2014 CMD 2014

© SKF Group SKF Renewable Energy factory footprint SKF Group Technical Centres Ahmedabad India Gothenburg Sweden Hanover USA SKF Group Technical Centres ERC Renewable Energy factories Schweinfurt Germany Dalian China Kaydon Cajamar Brazil GTCI GTCC GTCA SKF footprint fits well to the global wind energy market Avallon France Kaydon Monterrey Mexico CMD 2014

© SKF Group Examples of SKF market launches for wind energy SKF high-capacity cylindrical roller bearings and SKF high- capacity separable cylindrical roller bearings SKF WindCon SKF High Endurance Slewing Bearings SKF Nautilus bearings SKF XL Hybrid bearingsAutomatic centralized lubrication kits SKF Remote Diagnostic Services Black oxide-coated bearings SKF Wind Gearbox Bearing Kits Reinforced all-rubber HSS radial shaft seals Axial excluder seal HRC1 SKF Condition based lubrication LGBB 2 CMD 2014

© SKF Group SKF Wind Industry Quality Standard launched 2014 SKF built-in quality for lifetime bearing performance Optimum wind farm performance by controlling component quality throughout the entire value chain Definition of specific manufacturing and engineering process controls to ensure common standards and traceability for bearings and other critical components CMD 2014

© SKF Group Design and develop Engineering Consultancy Service Advanced calculations Dynamic simulations Lubrication engineering/tribology Material analysis Design for Six Sigma Manufacture and testing Provide solutions in all main applications Main shaft Gearbox Pitch and yaw Generator Install and commission Providing experts on-site services, training and auditable procedures Maintain and repair Remanufacturing Spare parts, including kits Inspection, diagnostic services Upgrade of bearings Hydrocam Induction heaters Shaft alignment tools Operate and monitor SKF WindCon SKF thermal imagers SKF Microlog data collectors Baker AWA-IV static motor/ generator analyzer Baker DX static motor/ generator analyzer SKF training Specification Working with designers to find the right solution right from the start SKF asset life cycle management for lower levellized cost of energy (LCOE) CMD 2014

© SKF Group SKF spare part management program for wind operations and maintenance Strategy 2012 Short lead times High availability Single spare parts Complete repair kits State of the art products Upgrade kits World class logistics Spare part partnership Business 2014 Started end 2012 and rolled out globally Spare part program includes bearings, seals, housings, lock nuts lubrication systems, grease, gearbox kits and condition monitoring systems Doubled net sales CMD 2014

© SKF Group SKF engagement in wind operations and maintenance Source: SKF, RECHARGE “Compared to other events, this is my main event. It gives me the latest trends in the market, where is the industry going and also new visions.” SKF Wind Farm Management Conference A platform for the wind industry 9 th year SKF is hosting the Wind Farm Management Conference Between 150 to 200 participants from more than 23 countries CMD 2014

© SKF Group Renewable Energy – key business message Renewable energy is a fast growing industry world wide – wind, ocean and solar Grow with the wind industry Supporting the development in ocean and solar energy market Technology trendsetter in the wind business with the development of WindCon, Nautilus main shaft bearings, black oxidized coated bearings and wind quality standard Integrated cost reduction programs for all product lines to secure profitable growth Keep focus on global renewable energy development and participate in R&D and new product development CMD 2014