Tom Johnstone, President and CEO

• 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 Group Slide 1 30 January 2013

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 2015
2,500 people impacted, early retirement and other voluntary and agreed reductions
© SKF Group Slide 2 30 January 2013

•
General Bearing Cooperation (GBC)
Acquired in August 2012
Net sales
Employees
Customers
Headquarter
Factories
Manufacturing around USD 155 million around 1,380
OEM and end-user in the truck, trailer, automotive and industrial transportation markets
North America
3 in China ball bearings, tapered roller bearings and precision roller bearings
• Blohm + Voss Industries (BVI)
Transaction is subject to relevant regulatory approvals
Net sales
Employees
Headquarter
Manufacturing around EUR 100 million around 400
Germany premium quality equipment for critical marine applications, including shaft components (seals and bearings), stabilizers, and oily water separators
© SKF Group Slide 3 30 January 2013

• 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 Group Slide 4 30 January 2013

Industrial
• new generation Nautilus bearing to Siemens
• main shaft solutions to Vestas V112-3.0 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 Group Slide 5 30 January 2013

• 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 Group Slide 6 30 January 2013

SKF Compact
Wire Steering
Bearing
New temperature monitoring system for railway
SKF Nautilus range extensions
SKF Machine
Condition
Indicator
SKF Speed
Sensor Unit
A hand-held,
18-volt, lithium-ion grease gun
SKF Low Friction Hub
Bearing Unit
Shaft sealing solutions
SKF Solar Hub
SKF ChainLube oil projection system
SKF Bus Door Actuator
© SKF Group Slide 7 30 January 2013

•
Environment
•
Core technologies
•
New products
• Strengthen R&D activities in fast growing regions
•
Strengthen links with universities and high schools
+10%
421 First filing patent application +30%
© SKF Group Slide 8 30 January 2013

• SKF launched the SKF BeyondZero portfolio with products and solutions, which will both improve energy efficiency and reduce the environmental impact.
Growth target:
SEK 2.5 billion to
SEK 10 billion by 2016
• SKF revised targets for its climate strategy and also partnered with the WWF in their Climate Savers Programme.
© SKF Group Slide 9 30 January 2013

• 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 Group Slide 10 30 January 2013

• 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 Group Slide 11 30 January 2013

Financial performance
Net sales, SEKm
Operating profit, SEKm
Operating margin, %
Profit before tax, SEKm
Cash flow, SEKm
Organic sales growth in local currency:
SKF Group:
Industrial market,
-2.5%
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
© SKF Group Slide 12 30 January 2013
2012
64,575
7,333
11.4
6,511
3,555
2011
66,216
9,612
14.5
8,932
3,848
Europe: -4.7%
North America: 6.8%
Asia: -9.5%
Latin America: 11.3%

% change y-o-y
25
20
15
10
5
0
- 5
- 10
2010 2011 2012
© SKF Group Slide 13 30 January 2013

Organic growth in local currency Q4 2012 vs Q4 2011
Europe
-7%
North
America
2%
Latin
America
9%
Middle East
& Africa
-9%
© SKF Group Slide 14 30 January 2013
Asia/Pacific
-11%

Organic growth in local currency 2012 vs 2011
Europe
-5%
North
America
7%
Latin
America
11%
Middle East
& Africa
-2%
© SKF Group Slide 15 30 January 2013
Asia/Pacific
-10%

Percent y-o-y
Volume
Structure
Price/mix
Currency
Net sales
2010
Q1 Q2 Q3 Q4
2011
Q1 Q2 Q3 Q4
5.3 16.6 19.0 16.3
0.0
0.0
0.0
0.0
-0.3 -0.5
0.3
0.9
20.1 12.6 6.2 0.0
5.0
4.4 5.1 4.8
1.3
1.6 2.0 2.8
5.0 16.1 19.3 17.2
26.4 18.6 13.3 7.6
-7.7 -5.2 -3.2 -6.2
-10.8 -12.2 -6.3 -2.1
-2.7 10.9 16.1 11.0
15.6
6.4 7.0 5.5
2012
Q1 Q2 Q3 Q4
-0.8 -2.8
-5.0 -5.9
-0.1 0.0
0.8
1.0
1.9 2.0
0.5
0.7
1.0 -0.8 -3.7 -4.2
0.4 3.6
-2.7 -3.6
1.4 2.8
-6.4 -7.8
© SKF Group Slide 16 30 January 2013

5
0
- 5
% y-o-y
20
15
10
14.2%
16.3%
© SKF Group Slide 17 30 January 2013
2010 2011
Structure in 2011: 4.8%
Structure in 2012: 0.4%
-2.1%
2012

SEKm
2 700
2 400
2 100
1 800
1 500
1 200
900
600
300
0
2010
One-time items
© SKF Group Slide 18 30 January 2013
2011 2012

12
10
8
6
4
2
0
%
16
14
2010
One-time items
© SKF Group Slide 19 30 January 2013
2011 2012

%
16
14
12
10
8
6
4
2
0
14.2*
13.8
2010
One-time items
* Excluding one-time items
© SKF Group Slide 20 30 January 2013
14.7*
14.5
2011
12.0*
11.4
2012

%
18
15
12
9
6
3
Regional Sales and Service
Strategic Industries
0
- 3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011 2012
Automotive
Excluding one-off items
(eg. restructuring, impairments, capital gains)
© SKF Group Slide 21 30 January 2013

%
25
24
23
22
21
20
19
18
2010
© SKF Group Slide 22 30 January 2013
2011 2012

%
30
25
20
15
10
5
0
24.0
23.6
16.2
2010 2011 2012
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 Group Slide 23 30 January 2013

after investments before financing
SEKm
2 000
1 000
0
- 1 000
- 2 000
- 3 000
- 4 000
- 5 000
- 6 000
*
**
2010 2011 2012
* SEK 798 million, excluding SEK 6,799 million for the acquisition of Lincoln.
** SEK 1,707 million, excluding acquisitions and divestments.
© SKF Group Slide 24 30 January 2013

SEKm
0
- 2 000
- 4 000
- 6 000
- 8 000
- 10 000
- 12 000
- 14 000
- 16 000
- 18 000
- 20 000
2010 2011 2012
Net debt: Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives.
© SKF Group Slide 25 30 January 2013
AB SKF, dividend paid (SEKm) :
2010 Q2
2011 Q2
2012 Q2
1,594
2,277
2,504

maturity years
• Available credit facilities:
EUR 500 million 2017
SEK 3,000 million 2017
• No financial covenants nor material adverse change clause
EURm
600
500 500
500
400
300
265*
200
100** 100 100
110
100
0
0
2012 2013 2014 2015 2016 2017 2018 2019
© SKF Group Slide 26
To adjust the debt structure: * R edemption of bonds
2013 - EUR 131 million
30 January 2013
** Early repayment of loans
2014 - EUR 30 million

SEKm
Net sales
Operating profit
Operating margin, %
Profit before taxes
Net profit
Basic earnings per share, SEK
Cash flow, after investments before financing
2012 2011
14,984 16,257
1,227
8.2
995
1,011
2.16
1,076
2,006
12.3
1,823
1,205
2.57
853
© SKF Group Slide 27 30 January 2013

SEKm
Net sales
Operating profit
Operating margin, %
Profit before taxes
Net profit
Basic earnings per share, SEK
Cash flow, after investments before financing
2012 2011
64,575 66,216
7,333
11.4
6,511
4,878
10.37
3,555
9,612
14.5
8,932
6,224
13.29
3,848
© SKF Group Slide 28 30 January 2013

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 Group Slide 29 30 January 2013

(based on current assumptions)
Share of net sales*
2012
Europe 43%
Asia Pacific 24%
North America 22%
Latin America
Total
8%
Sequential trend for Q1 2013
* Previously published shares have been restated in February 2013.
© SKF Group Slide 30 30 January 2013
Q1 2013 vs Q1 2012
---
-
=
=
--

(based on current assumptions
Share of net sales
2012
Strategic
Industries
Regional Sales and Service
31%
39%
Automotive 27%
Total
Sequential trend for Q1 2013
Q1 2013 vs Q1 2012
--
-
--
--
© SKF Group Slide 31 30 January 2013

(based on current assumptions)
Share of net sales 2012*
6% Aerospace
2%
29%
13%
13%
12%
10%
6%
4%
Two-wheelers and Electrical
Industrial distribution
Industrial, heavy, special and off-highway
Cars and light vehicles
Industrial, general
Vehicle service market
Energy
Railway
5% Trucks
© SKF Group
* Previously published shares have been restated in February 2013.
Slide 32 30 January 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 Group Slide 33 30 January 2013

© SKF Group Slide 34 30 January 2013

•
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 Group Slide 35 30 January 2013

© SKF Group Slide 36 30 January 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

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 www.skf.com) under the
Administration Report; “ Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis ” .
© SKF Group Slide 37 30 January 2013

© SKF Group Slide 38 30 January 2013