SKF Year-end results 2012 Tom Johnstone, President and CEO

© SKF Group30 January 2013Slide 1 Summary of the quarter Weaker sales in the quarter - lower overall demand - inventory destocking in the market Impact on the operating margin due to significantly lower manufacturing Continued reduction on inventories Strong cash flow Accelerated and expanded activities to reduce costs by SEK 3 billion by the end of 2015 and strengthen growth Acquisition of Blohm + Voss Industries

© SKF Group30 January 2013Slide 2 Programme to improve efficiency, reduce cost and strengthen profitable growth Main activities: consolidation of production between sites transfer of production from West Europe to serve faster growing markets with more local production optimization and productivity improvements in the manufacturing and demand chain processes consolidation of and efficiency improvements in administration and support functions reduction in purchasing cost mainly through standardization and rationalization of the supplier base. Reducing annual costs by SEK 3 billion by the end of 2015 Total costs for the programme SEK 1.5 billion for the years 2012 to ,500 people impacted, early retirement and other voluntary and agreed reductions

© SKF Group30 January 2013Slide 3 Acquisitions in the last 12 months 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) Transaction is subject to relevant regulatory approvals 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 Group30 January 2013Slide 4 BVI strengthening SKF’s position as a marine specialist Strategic fit with SKF Marine growth strategy Complementary product portfolio Secure the leadership with propulsion system OEMs Widen the scope of supply for the application life-cycle Today, SKF sales to the marine industry is around SEK 1.5 billion. Main applications are propulsion systems, including thrusters, pods and gearboxes.

© SKF Group30 January 2013Slide 5 Some examples of new businesses in 2012 Industrial new generation Nautilus bearing to Siemens main shaft solutions to Vestas V MW turbine axle boxes and wheel set bearing units to Siemens Rail Systems SKF ConRo Compacts to a major metal industry customer third strategic partnership agreement with Baosteel Group Corporation maintenance services to LKAB integrated maintenance solutions to Fibria two custom-designed SKF spherical roller bearings, 8.8 tonnes each, for Caesars High Roller observation wheel in Las Vegas Automotive SKF Bus Door Actuator to Volvo Buses rear wheel bearing units and front suspension bearing units to Volvo Car Corporation wheel bearing units and clutch bearings to Audi bearing and units to Scania for wheels and transmissions bonded piston seals to Mazda Motor Corporation

© SKF Group30 January 2013Slide 6 Some highlights from 2012 SKF celebrated 100 years of business in China - inaugurated a new bearing and truck hub unit factory in Jinan - broke ground on a new regional distribution centre in Shanghai - announced the establishment of a new SKF Campus in Jiading, Shanghai, containing a new factory for automotive and the Global Technical Centre China, SKF Solution Factory and SKF College New facilities - Railway test centre in Tver, Russia - Five new SKF Solution Factory: USA, Romania, Italy, Australia and the Netherlands Partnership With Protean Electric for supplying products to Protean’s in-wheel electric motors for electric vehicles and hybrid cars. Documented delivered value SKF provided SEK 4.1 billion in verified savings for customers. SKF Distributor College awarded its 170,000th certificate Dow Jones Sustainability Indexes and FTSE4Good - member of DJSI indexes for the 13th successive year - included for the 12th successive year in the FTSE4Good Index Series

© SKF Group30 January 2013Slide 7 Some examples of new products in 2012 SKF ChainLube oil projection system New temperature monitoring system for railway Shaft sealing solutions SKF Low Friction Hub Bearing Unit SKF Bus Door Actuator A hand-held, 18-volt, lithium-ion grease gun SKF Speed Sensor Unit SKF Solar Hub SKF Nautilus range extensions SKF Compact Wire Steering Bearing SKF Machine Condition Indicator

© SKF Group30 January 2013Slide 8 R&D – main areas and investments in 2012 Main areas Environment Core technologies New products Strengthen R&D activities in fast growing regions Strengthen links with universities and high schools First filing patent application +30% +10% 2.5% of sales 421

© SKF Group30 January 2013Slide 9 Launch of new climate targets SKF launched the SKF BeyondZero portfolio with products and solutions, which will both improve energy efficiency and reduce the environmental impact. SKF revised targets for its climate strategy and also partnered with the WWF in their Climate Savers Programme. Growth target: SEK 2.5 billion to SEK 10 billion by 2016

© SKF Group30 January 2013Slide 10 Key focus areas ahead 2012 Managing the uncertain and different demand environment - regions and segments Profit and cash flow - inventory management Initiatives and actions to support long-term financial targets Continue the integration of Lincoln Business Excellence and competence development Implement the new organization for the Industrial market One SKF and SKF Care as guiding lights

© SKF Group30 January 2013Slide 11 Key focus areas ahead 2012 Managing the uncertain and different demand environment - regions and segments Profit and cash flow - inventory management Initiatives and actions to support long-term financial targets Continue the integration of Lincoln Business Excellence and competence development Implement the new organization for the Industrial market One SKF and SKF Care as guiding lights.

© SKF Group30 January 2013Slide 12 SKF Group – 2012 Financial performance Net sales, SEKm64,57566,216 Operating profit, SEKm7,3339,612 Operating margin, % Profit before tax, SEKm 6,5118,932 Cash flow, SEKm 3,5553,848 Organic sales growth in local currency: SKF Group: -2.5% Industrial market, Strategic Industries: -3.0% Regional Sales and Service:-1.8% Automotive:-3.4% Key points Sales volumes down by -3.9% y-o-y Manufacturing significantly lower y-o-y Inventories down to 19.9% of sales Europe:-4.7% North America:6.8% Asia:-9.5% Latin America:11.3%

© SKF Group30 January 2013Slide 13 Organic sales growth in local currency % change y-o-y

© SKF Group30 January 2013Slide 14 Europe -7% Asia/Pacific -11% Latin America 9% Middle East & Africa -9% North America 2% Growth development by geography Organic growth in local currency Q vs Q4 2011

© SKF Group30 January 2013Slide 15 Europe -5% Asia/Pacific -10% Latin America 11% Middle East & Africa -2% North America 7% Growth development by geography Organic growth in local currency 2012 vs 2011

© SKF Group30 January 2013Slide 16 Components in net sales Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q Percent y-o-y Volume Structure Price/mix Sales in local currency Currency Net sales

© SKF Group30 January 2013Slide 17 Growth in local currency, including structure % y-o-y Structure in 2011: 4.8% Structure in 2012: 0.4% 14.2% 16.3% -2.1%

© SKF Group30 January 2013Slide 18 Operating profit SEKm 2010 One-time items

© SKF Group30 January 2013Slide 19 % 2010 One-time items Operating margin

© SKF Group30 January 2013Slide 20 % One-time items * Excluding one-time items 14.7* 14.2* * Operating margin 11.4

© SKF Group30 January 2013Slide 21 Operating margin per business area Strategic Industries Regional Sales and Service Automotive % Excluding one-off items (eg. restructuring, impairments, capital gains)

© SKF Group30 January 2013Slide 22 Inventories as % of annual sales %

© SKF Group30 January 2013Slide 23 Return on capital employed ROCE: Operating profit plus interest income, as a percentage of twelve months rolling average of total assets less the average of non-interest bearing liabilities. %

© SKF Group30 January 2013Slide 24 Cash flow, after investments before financing SEKm *SEK 798 million, excluding SEK 6,799 million for the acquisition of Lincoln. **SEK 1,707 million, excluding acquisitions and divestments. * **

© SKF Group30 January 2013Slide 25 Net debt SEKm AB SKF, dividend paid (SEKm) : 2010 Q21, Q22, Q22, Net debt:Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives.

© SKF Group30 January 2013Slide 26 EURm 265* ** Available credit facilities: EUR 500 million 2017 SEK 3,000 million 2017 No financial covenants nor material adverse change clause Debt structure on 31 December, maturity years To adjust the debt structure: * R edemption of bonds EUR 131 million ** Early repayment of loans EUR 30 million

© SKF Group30 January 2013Slide 27 SEKm Net sales14,98416,257 Operating profit1,2272,006 Operating margin, % Profit before taxes9951,823 Net profit1,0111,205 Basic earnings per share, SEK Cash flow, after investments before financing 1, Fourth quarter 2012

© SKF Group30 January 2013Slide 28 SEKm Net sales64,57566,216 Operating profit7,3339,612 Operating margin, % Profit before taxes6,5118,932 Net profit4,8786,224 Basic earnings per share, SEK Cash flow, after investments before financing 3,5553,848 Full year 2012

© SKF Group30 January 2013Slide 29 January 2013: SKF demand outlook Q Demand compared to the first quarter 2012 The demand for SKF’s products and services is expected to be lower for the Group. For Europe it is expected to be significantly lower, for Asia slightly lower and for North America and Latin America relatively unchanged. The demand is expected to be lower for Industrial Market, Strategic Industries and SKF Automotive, for Industrial Market, Regional, Sales and Services it is expected to be slightly lower. Demand compared to the fourth quarter 2012 The demand for SKF’s products and services is expected to be relatively unchanged for the Group, for the business areas and for the regions. Manufacturing Manufacturing is expected to be lower year over year and higher compared to fourth quarter.

© SKF Group30 January 2013Slide 30 Share of net sales 2012 Europe44% Asia Pacific24% North America20% Latin America9% Total Q vs Q = = -- Sequential trend for Q SKF demand outlook Q1 2013, regions (based on current assumptions)

© SKF Group30 January 2013Slide 31 Sequential trend for Q Share of net sales 2012 Strategic Industries 31% Regional Sales and Service 39% Automotive27% Total Q vs Q SKF demand outlook Q1 2013, business areas (based on current assumptions

© SKF Group30 January 2013Slide 32 6% 5% 28% 13% 11% 10% 5% 4% 5% Two-wheelers and electrical Aerospace Industrial distribution Industrial, heavy, special and off-highway Cars and light vehicles Industrial, general Vehicle service market Energy Railway Trucks Share of net sales 2012 SKF sequential volume trend Q1 2013, main segments (based on current assumptions)

© SKF Group30 January 2013Slide 33 Guidance for the first quarter 2013 Tax level: around 30% Financial net for the first quarter: Around SEK -200 million Exchange rates on operating profit versus 2012 Q1: SEK -50 million Full year: SEK -250 million Additions to PPE: Around SEK 1.7 billion for 2013 Guidance is approximate and based on current assumptions and exchange rates

© SKF Group30 January 2013Slide 34 Dividend proposal AB SKF’s Board proposes an unchanged dividend of SEK 5.50 per share to the Annual General Meeting

© SKF Group30 January 2013Slide 35 New IT systems Primarily for Sales/customer relationship, Purchasing, Demand chain and Finance New common IT infrastructure for all five technology platforms To implement common, best practice processes across the SKF Group globally, enabling business efficiency, speed and growth Will be implemented over a number of years with initial roll-out in 2014

© SKF Group30 January 2013Slide 36 Key focus areas 2013 Managing the uncertain and different demand environment - Profit and cash flow Initiatives and actions to support long-term financial targets - New factories in Mysore and Bengaluru in India - New warehouse in Shanghai, China - SKF Campus in Shanghai, China, including: ‣ New factory for automotive ‣ Global Technical Centre China ‣ SKF Solution Factory ‣ SKF College - Integration of new acquisitions, GBC and BVI - Cost reduction and efficiency programme - New IT systems Business Excellence and competence development One SKF and SKF Care as guiding lights

© SKF Group30 January 2013Slide 37 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 under the Administration Report; “ Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis ”.

© SKF Group30 January 2013Slide 38