SKF Annual General Meeting Tom Johnstone President and CEO

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2 SKF Annual General Meeting 2011 Tom Johnstone President and CEO

3 Organic growth in local currencies % change y-o-y

4 Key focus areas ahead 2010 Profit and cash flow Adjustment of manufacturing output to new demand levels Growing segments and geographies Strengthening the platform/segment approach Competence development

5 Key focus areas ahead 2010 Profit and cash flow Adjustment of manufacturing output to new demand levels Growing segments and geographies Strengthening the platform/segment approach Competence development

6 Organic growth in local currencies % change y-o-y Net sales Operating profit SEK 61,029 m SEK 8,452 m Basic earnings per share SEK AB SKF s Board propose a dividend of SEK

7 SKF Group Vision To equip the world with SKF knowledge

8 SKF Care Business Care Employee Care Operating margin BeyondZero TM SKF Care Environmental Care Community Care

9 Business Care Business care Operating margin SKF Care Financial targets Shareholder value Customer satisfaction Quality product and processes Business ethics Responsible demand chain

10 Long-term financial targets New targets Operating margin level 15% Annual sales growth in local currencies 8% ROCE 27%

11 How to reach our long term goals Accelerate profitable growth Reduce cost and eliminate waste Invest for growth

12 Examples of new businesses Goldwind WinWinD CSR Zhuzhou Electric Locomotive Co Ltd. (ZELC) Izuzu Volkswagen GM Fuwa Engineering

13 SKF Distributor College - Number 100,000 Certificate 100,000: Self-aligning bearing systems 16 March 2011 Ronnie Yandle FLORIDA BEARINGS INC ORLANDO

14 Lincoln Industrial A leading supplier of lubrication systems and tools Headquartered in St. Louis, Missouri, USA 9 manufacturing and engineering centres globally Sales of around USD 400 m in 2010 About 2,000 employees Europe Geogaphic sales split Asia Other North America

15 Examples of new product launches in 2010 Four-row tapered roller bearing Low friction X-Tracker SKF Engineering Simulation Services SKF Commutation Sensor-Bearing Unit SKF MetroCon SKF Crane Asset Management SKF Overrunning Alternator Pulley Unit SKF Hydraulic driven lubricator CBM for elevators and escalators SKF solutions for special pumps SKF SPEEDI-SLEEVE SKF Drum Support Unit SKF Cam Follower Unit High performance seal SKF Low Friction Engine Seal SKF One Way Clutch

16 Examples of new product launches in 2010 Four-row tapered roller bearing SKF MetroCon SKF Commutation Sensor-Bearing Unit SKF Crane Asset Management Low friction X-Tracker SKF Overrunning Alternator Pulley Unit SKF Engineering Simulation Services SKF Hydraulic driven lubricator SKF solutions for special pumps CBM for elevators and escalators SKF SPEEDI-SLEEVE SKF Drum Support Unit SKF Cam Follower Unit High performance seal SKF Low Friction Engine Seal SKF One Way Clutch

17 Examples of new product launches in 2010 Four-row tapered roller bearing SKF Commutation Sensor-Bearing Unit Low friction X-Tracker SKF Engineering Simulation Services SKF MetroCon SKF Crane Asset Management SKF Overrunning Alternator Pulley Unit SKF Hydraulic driven lubricator CBM for elevators and escalators SKF solutions for special pumps SKF SPEEDI-SLEEVE SKF Drum Support Unit SKF Cam Follower Unit High performance seal SKF Low Friction Engine Seal SKF One Way Clutch

18 SKF energy efficient (E2) bearings China India Peru Indonesia Conveyors used in mining industry. 130,000 pcs E2 bearings Sangam Group Calculated return on investment within 37 days. Industria Textil Piura 60,000 E2 DGBB Leuwijaya Textile 30,000 E2 bearing potential 325,000 for 3 different customers

19 Stop-Start function for hybrids SKF Rotor Positioning Bearing enables Stop-Start function Cuts CO 2 up to 25% in dense urban traffic New 3-year contract signed for the newly launched i-stars Existing contract for the first generation of Valeo s StARS (Starter Alternator Reversible System)

20 How to reach our long term goals Accelerate profitable growth Reduce cost and eliminate waste Invest for growth

21 The journey towards Business Excellence SKF Business Excellence SKF Bridge of Manufacturing Excellence SKF Six Sigma Zero defect concept TQM and employee involvement The temple of Manufacturing Excellence The SKF channel concept SKF quality management system

22 How to reach our long term goals Accelerate profitable growth Reduce cost and eliminate waste Invest for growth

23 Research and development Investments in R&D % % 251 first filings of patent applications 2 new Global Technical Centre 4 University Technology Centre

24 New facilities 17 Solution Factories more to come 3 new factories + 3 under construction

25 Responsible demand chain SKF s requirements addresses...to ensure Working ethics Social / EHS issues Business ethics

26 Total returns - SKF versus OMX Index 27/ = Index SKF OMX Stockholm Allshares Updated: 1 April 2011

27 Environmental Care SKF Care ISO EMS Climate change strategy REACH chemicals Water Material consumption Wastes and recycling Environmental Care

28 Reduce energy intensity Frequency control in honing oil pump motor Compressed air management LED lighting Waste heat recycling Building insulation Energy Assessments from SKF Energy Competence Center

29 LEED standard in new building constructions SKF USA Inc. head office SKF Tver factory, SKF Tver Factory, Russia Russia

30 Employee Care Employee Care Human rights and labour standard Zero Accidents + OHSAS Health and fitness Working Climate Analysis SKF Care Training and development

31 SKF Zero Accidents performance Zero Accidents rate for SKF Group Reduced accident rates by close to 90% since 1994 (accident rate 13.78) OHSAS global certification in 2005 Health and fitness programmes in different units

32 SKF College campus Campus Elgin Campus Göteborg Campus Shanghai Campus Buenos Aires Campus Pune

33 Community Care Education and vocational training Sports Health Helping underprivileged people Event/prize/award SKF Care Community Care

34 Gothia Cup & Meet the World

35 SKF Care Business Care Employee Care Operating margin BeyondZero TM SKF Care Environmental Care Community Care

36 Utmärkelser DJSI World Index Sector leader in Industrial Engineering 2003, 2005, 2009 FTSE4Good Index Series Ethibel PIONEER & Ethibel EXCELLENCE Investment Registers

37 SKF Group performance % Operating margin Q % Sales growth in local currency Q Return on capital employed % Long-term targets 20 15% Operating margin level % Growth per annum (local) 27% Return on capital employed Q1 2011

38 Key focus areas ahead 2011 Develop the business in line with the long-term financial targets Drive initiatives for profitable growth Integration of Lincoln Industrial Business Excellence and competence development One SKF and SKF Care as guiding lights

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