1. The SKF Group Half-year result 2003 Tom Johnstone President and CEO

2. Key issues Q2 2003 SKF Group Solid financial performance - maintained operating margin - reduced inventories - positive cash flow Structure activities continuing - two acquisitions - one divestment

3. Net sales 10 53211 053 -4.7% Operating profit9451 048 -9.8% Operating margin9.0%9.5% Profit before taxes815925 -11.9% Net profit 569636 Earnings per share, SEK4.995.58 -10.6% Cash flow* 510829 *after investments before financing MSEK 2003 2002 Second quarter 2003 SKF Group

4. Net sales 21 07321 718 -3.0% Operating profit1 889 1 951 -3.2% Operating margin9.0% 9.0% Profit before taxes 1 6171 686 -4.1% Net profit 1 1311 165 Earnings per share, SEK9.9310.22-2.8% Cash flow*557 717 *after investments before financing MSEK 20032002 Half-year result SKF Group

5. Profit before taxes 2001 MSEK 20022003 SKF Group

6. SEK Earnings per share SKF Group 200120022003

7. Net sales MSEK SKF Group 200120022003

8. % change y-o-y Sales in local currency SKF Group 200120022003

9. Q1Q2Q3Q4Q1Q2 Q3 Q4Q1Q2 0.30.4 1.01.41.92.01.40.70.1 1.1- 2.7- 3.2- 3.8- 7.3-0.53.33.96.23.2 1.9 1.62.11.51.41.21.71.20.6 3.3- 0.4- 1.2- 0.7- 4.42.86.57.08.13.9 7.711.18.96.72.2-3.7-8.3-10.8-9.3-8.6 11.010.77.76.0- 2.2-0.9-1.8-3.8-1.2-4.7 Structure Volume Price / Mix Sales in local currency Currency Net sales development per quarter 2002 Net sales 2001 Percent y-o-y 2003 SKF Group

10. % Operating margin SKF Group 200120022003

11. Operating margin per division Industrial Service Aero and Steel Electrical Automotive % SKF Group 200120022003

12. 2000 2001 Accumulated change in the number of employees 2002 acquisitions capacity adjustment and restructuring Employees 2003 SKF Group

13. Cash flow after investments before financing MSEK SKF Group 200120022003

14. % Inventories as % of annual sales Target: 20 % SKF Group 200120022003

15. Additions to tangible assets MSEK Depreciation according to plan 20012002 YTD June 2003 SKF Group

16. Net cash* MSEK SKF Group * Short-term financial assets - Loans 200120022003 Dividend paid: 2003 Q2, MSEK 911 2002 Q2, MSEK 683 2001 Q2, MSEK 598

17. Number of acquisitions Jan 2000 - June 2003 Europe Eastern Europe North Americ a Australia Latin America Industrial 5+1 3+1+1 Automotive Electrical 1 Service 4 11 Aero 1 SKF Group 2000-2002 Number: 16 Investment:MSEK 1 015 + =acquisitions made during 2003

18. Acquisition strategy SKF Group Acquisitions are an integral part of the profitable growth strategy. A systematic acquisition process has been established. Management and financial resources are available. Acquisition criteria: strategic fit with clear potential synergies and ability to exploit these in a reasonable timeframe strong commitment and ownership by acquiring Division cash flow and EPS accretive in the first full year. Including goodwill amortization. positive TVA effect (covering full cost of capital) in two to three years. Including goodwill amortization.

19. SKF Group Target 10 % operating margin level 10 BSEK additional annual net sales To be reached within the 2005/2006 time period

20. Drive operational excellence Grow new markets and segments Introduce new products and solutions Develop our people and competencies SKF Group Focused areas:

21. Volume trend Europe 55% 26% 13% 4% North America Asia Pacific Latin America External sales 2002 July 2003 April 2003 SKF Group Total

22. Volume trend Automotive 32% 4% 32% Electrical Service External sales 2002 23% Industrial Aero (excl.forging and steel) 5% April 2003 July 2003 SKF Group

23. Outlook July 2003 The market demand for the Group’s products and services is expected to be somewhat lower during the third quarter, with Europe slightly weaker, North America relatively unchanged and continued strong growth in Asia. Manufacturing will be reduced during the quarter in order to continue the reduction of inventory levels. SKF Group

24. 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 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 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