Henrik Lange Executive Vice President and CFO CMD 2013

© SKF GroupCMD 2013 Agenda Financial development Cash flow, working capital Financial position Second brand strategy Acquisitions

Financial development 1

© SKF GroupCMD 2013 Half year 2013 SEKm Net sales31,54434,105 Operating profit3,3174,185 Operating margin, % Operating margin excl. one-offs, % Profit before taxes2,8643,730 Net profit1,9222,570 Basic earnings per share, SEK Cash flow, after investments before financing 2551,382

© SKF Group Operating margin per business area Strategic Industries Regional Sales and Service Automotive % Excluding one-off items (eg. restructuring, impairments, capital gains) CMD 2013

© SKF GroupCMD 2013 On sales including Intra-Group sales H On external net sales approx. figures H Automotive business (~28%) Automotive Automotive excluding one-off 4.4% 5.0% 5.3% 6.0% Industrial business (~68%) Strategic Industries9.2% SI excluding one-off11.2% Regional Sales and Service11.5% RSS excluding one-off11.7% Industrial business 13.0% Industrial business excluding one-off 14.6% Business segment margins

© SKF GroupCMD 2013 % SKF Group – operating margin development Including one-off costs Excluding one-off costs

© SKF GroupCMD 2013 How did we get there? SKF today – more robust, more diverse Divesting and outsourcing component manufacturing, reducing fixed cost and invested capital Manufacturing footprint in best cost countries Customized solutions, value added products, technology platforms Diversifying growth, faster growing segments and geographies Acquisitions supporting growth and profitability

Cash flow, working capital 2

© SKF GroupCMD 2013 Cash flow, after investments before financing SEKm *SEK 1,707 million, excluding acquisitions and divestments. **SEK -69 million, excluding acquisitions and divestments. * **

© SKF GroupCMD 2013 Property, plant and equipment / Sales % -9 percentage points in 10 years

© SKF GroupCMD 2013 Inventories / Sales % Target 18% -1 percentage points in 10 years

© SKF GroupCMD 2013 Net working capital / Sales % Flat over 10 years NWC = Trade A/R + Inventories – Trade A/P

© SKF GroupCMD 2013 Capital management focus Continue PPE & sales ratio going forward Step-up activities to: - reach long term stock target of 18% of sales - improve A/R / sales ratio - get effects on A/P from new purchasing activities

Financial position 3

© SKF GroupCMD 2013 Financial position Q Net debt, incl. pension liabilities SEK 18,776 million Key measures Gearing 54% Target levelaround 50% Net debt/Equity84% “ “ “ 80% Credit ratings: S&PA- Moody’sA3

© SKF GroupCMD 2013 EURm Available credit facilities: EUR 500 million 2017 SEK 3,000 million 2017 No financial covenants nor material adverse change clause Debt structure, maturity years 100

© SKF GroupCMD 2013 History of strong cash flow generation and a shareholder friendly distribution policy 2003 – H1 2013, accumulated rounded figures SEKm EBITDA85,000Investments (21%)18,000 Fin. Net, taxes, wc, others (37%)-32,000Acquisitions (16%)14,000 Cash flow from operations (61%)52,000Dividends/redemption (35%)30,000 Extra pension funding (4%)3,000

Acquisitions 4

© SKF GroupCMD 2013 Investments and innovation – Acquisitions Products Technologies Geographies Industries SNFA (2006) S2M (2007) QPM (2008) Economos (2006) Macrotech (2006) Macrotech (2009) 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) Seals Bearings and units Lubrication systems Services Mechatronics BVI (2013)

© SKF GroupCMD 2013 Acquisitions in the last year General Bearing Cooperation (GBC) Acquired in August 2012 Net salesaround USD 155 million Employeesaround 1,380 CustomersOEM and end-user in the truck, trailer, automotive and industrial transportation markets HeadquarterNorth America Factories3 in China Manufacturingball bearings, tapered roller bearings and precision roller bearings Blohm + Voss Industries (BVI) Acquired in February 2013 Net salesaround EUR 100 million Employeesaround 400 HeadquarterGermany Manufacturingpremium quality equipment for critical marine applications, including shaft components (seals and bearings), stabilizers, and oily water separators

© SKF GroupCMD 2013 Acquisition criteria Strategic fit with clear potential synergies and ability to exploit these in a reasonable timeframe. Strong commitment and ownership by acquiring Business Area. Profitable high quality companies with strong management and preferably larger deals. EPS accretive in the first full year, positive TVA effect in two to three years, including amortization of intangible assets.

© SKF GroupCMD 2013 Acquisition strategy for profitable growth Acquisitions are seen as one important driver for growth and value creation. Integration of Lincoln, General and BVI is going well so SKF is able to make additional larger acquisitions. SKF has the financial means and acquisition project resources in place to continue to pursue relevant acquisitions. Focus is on SKF platforms and PT products.

Second brand strategy 5

© SKF GroupCMD 2013 Strategy for second brands Capture mid-market growth Lower cost manufacturing Global market approach Segment focus - PEER, Industrial segments - GBC, Auto, HD segments

© SKF GroupCMD 2013 Sustainable profitable growth – application specific products and second brands Knowledge engineering Documented value Cost reduction Brand Application specific products Second brands Strong cost focus Peer/General/Hyatt brands Low Middle High

© SKF GroupCMD 2013 Business by industry Truck & Trailer Cars Other Agricultural Other Transmission Electrical Industrial distribution Fluid machinery Material handling

© SKF GroupCMD 2013 Key business message Continued strong performance Strong cash flow and financial position - implement restructuring program - working capital focus Acquisition opportunities - in the SKF platforms - “normal performance” companies