SKF Investor Relations
October 2014

Established:
Sales 2013:
Employees 2013:
Production sites:
SKF presence:
Distributors/dealers:
Global certificates:
1907
SEK 63,597 million
48,401 around 165 in 28 countries in over 130 countries
15,000 locations
ISO 14001
OHSAS 18001 certification
© SKF Group Slide 1 15 October 2014

Cars and light trucks
Industrial distribution
29%
14%
11%
Vehicle aftermarket
Energy
5%
10%
9% heavy and special
11%
6%
4%
3%
Aerospace
Railway
Off-highway
5%
2%
Trucks
Two-wheelers and Electrical
Industrial, general
Asia/Pacific
24%
Middle East
& Africa
3%
24%
North
America
Eastern
Europe
5%
35%
7%
3%
Latin
America
Sweden
Western
Europe
* Previously published shares have been restated in February 2013
© SKF Group Slide 2 15 October 2014

(2002) (1998)
% of group total
(48)(44)(53)
(47)(46)(53)
Net sales
Average number of employees
Tangible asset
(10)(12) (9)
(13) (14) (8)
(25)(14)(19)
(26)(13) (18)
(6) (5) (4)
(4) (4) (3)
(5)(14)(12)
(5) (12)(15)
(3) (9) (3)
(3) (9) (3)
(3) (2) (0)
(2) (2) (0)
North
America
© SKF Group Slide 3 15 October 2014
Latin
America
Western
Europe
Sweden Eastern
Europe
Middle East and Africa
Asia/Pacific

%
16
8
6
4
2
0
14
12
10
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
© SKF Group Slide 4 15 October 2014

%
30
25
20
15
10
5
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
© SKF Group Slide 5 15 October 2014

%
20
15
10
-5
-10
5
0
-15
-20
-25
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
© SKF Group Slide 6 15 October 2014

Operating margin
15
10
5
0
07 08 09 10 11 12 13
Y
TD
1
4
One-time items
Changes in sales in local currency incl. structure
- 10
- 15
- 20
20
15
10
5
0
- 5
07 08 09 10 11 12 13
Y
T
D
14
Return on capital employed
30
25
20
15
10
5
0
07 08 09 10 11 12 13 14-
09-
30
One-time items for the individual year
© SKF Group
Slide 7
15 October 2014

Sustainable profitable growth
•
Expand the platform concept
•
Exploit the asset life cycle approach
•
Develop new products and grow SKF BeyondZero portfolio
•
Extend and grow second brands
•
Acquisitions
Capital efficiency
•
Fixed capital
•
Net working capital
Investments & Innovation
•
New and existing facilities
•
Research and development
•
IT systems and mobility
Cost reduction
•
Business Excellence
•
Consolidation of manufacturing
•
Optimization and productivity improvements
•
Reduction in purchasing costs
© SKF Group Slide 8 15 October 2014

© SKF Group Slide 9 15 July 2014

• SKF launched the BeyondZero TM 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.
SKF’s climate targets:
• Increase revenue from SKF BeyondZero portfolio from SEK 2.5 billion to SEK 10 billion by 2016
•
Reduce total annual energy use by 5% below the 2006 level by 2016
• Reduce energy use per production output by 5% y-o-y from 2012 to 2016
• Reduce CO
2 emissions per tonne-kilometre by 30% 2016 vs 2011 for transports managed by SKF Logistics Services
• Major suppliers certified according to ISO 50001 by 2016
© SKF Group Slide 10 15 October 2014

Australia
Brazil
Canada
Canada
Perth
Cajamar
Edmonton
Toronto
Columbia Bogota
China Shanghai
China
China
Tianjin
Urumqi
France
Germany
India
India
Italy
Montigny
Schweinfurt
Pune
Manesar
Turin
Mexico Monterrey
Netherlands Ridderkerk
Netherlands Nieuwegein
Poland
Romania
Katowice
Bucharest
Russia
United Arab
Emirats
Moscow
Abu Dhabi
South Africa Witfield
Spain Madrid
Sweden Gothenburg
Taiwan
Turkey
UK
USA
USA
Taichung
Istanbul
Luton
Cleveland
Houston
© SKF Group Slide 11 15 October 2014

Segments & Application Knowledge Platforms & Technology Competence
SKF
Solution Factory
Capabilities
Sealing Solutions Mechanical Services Lubrication Solutions
Bearing Service Workshop Condition Monitoring Services Remote Monitoring Center
MaPro/CoMo Product Repair A & MC Training Center
© SKF Group Slide 12 15 October 2014

Telescopic actuators for mould adjustment
SKF ConRo Top roll line units
SKF ConRo Compact roll line units
SKF ConRo Low roll line units
SKF DryLube Bearings and SNL Housings for roll out table
SKF sealed selfaligning bearing system (CARB and spherical roller bearings) and centralized lubrication system for roll lines
SKF Caster Analyst
System for roll lines
© SKF Group Slide 13 15 October 2014

Central gear
Hybrid pinion units
Chassis lubrication
Centralized lubrication systems
© SKF Group Slide 14 15 October 2014
Wheel end
• Integrated smart wheel bearing units with sensors
• SKF Mudblock cassette seals
Motor hood
Electromechanical actuators

New CRB-design with extra-high carrying capacity for wind-gearboxes.
SKF WindCon 3.0/Webcon
Intranet supervised condition monitoring
New pitch bearing design with improved corrosion protection
Automatic centralized lubrication kits for reduced maintenance cost
DRTRB-unit SKF
Nautilus with segmented cage for minimized friction
XL Hybrid bearings with ceramic balls for superior insulation
© SKF Group Slide 15 15 October 2014

SKF’s solutions which realize significant environmental benefits
Designed for environment
Applied for environment
Stop-start system
SKF sensor bearing E2 - 30% less energy compared to a standard bearing
Up to 15% better fuel economy of the car
A solution that is primarily designed to improve environmental performance by itself
A solution that enables improved environmental performance in a specific application
© SKF Group Slide 16 15 October 2014

China
Conveyors used in mining industry.
130,000 E2 bearing
India
Sangam Group
Peru
Industria Textil Piura
• 60,000 E2 deep groove ball bearing
Indonesia
Leuwijaya Textile
•
30,000 E2 bearing
• potential 325,000 for
3 different customers
© SKF Group Slide 17 15 October 2014

© SKF Group Slide 18 15 October 2014

Bearings and units
© SKF Group Slide 19 15 October 2014

Seals
© SKF Group Slide 20 15 October 2014

Mechatronic
© SKF Group Slide 21 15 October 2014

Lubrication systems
© SKF Group Slide 22 15 October 2014

Service
© SKF Group Slide 23 15 October 2014

Acquisition 2003-2014
Identifying gaps and opportunities in all platforms
Bearings and units
Seals Services
Lubrication systems
Mechatronics
Products
Technologies
SNFA
(2006)
GLO
(2008)
S2M
(2007)
Kaydon
(2013)
Economos
(2006) Baker
(2007)
Macrotech
(2006)
Macrotech
(2009)
GLOi
(2014)
Geographies QPM
(2008)
Scandrive
(2003)
Safematic
(2006)
ABBA
(2007)
Jaeger
(2005)
PMCI
(2007)
PB&A
(2006)
Monitek
(2006)
Hofmann
Engineering
North America
(2014)
Vogel
(2004)
Lincoln
Industrial
(2010)
ALS
(2007)
Sommers
(2005)
Cirval
(2008)
TCM
(2003)
Industries Peer
(2008)
GBC
(2012)
BVI
(2013)
© SKF Group Slide 24 15 October 2014

Tom Johnstone, President and CEO
15 October 2014

Alrik Danielson , new President and CEO from 1 January 2015
B.Sc in Business Administration and International Economics from the University of Gothenburg
1987-2005 Previous positions within SKF:
•
Financial controller in Gothenburg
•
President, Industrial Division in Spain and Portugal
•
President, SKF do Brazil
•
President, Industrial Division and several other managerial positions.
2005-2014 Höganäs AB, President and CEO
© SKF Group Slide 26

Examples of new business
•
Doosan Heavy Industries and Construction, SKF Supergrip Bolts
South Korea SKF Nautilus bearing
•
A leading Chinese locomotive manufacturer Traction motor bearings
•
HSD SpA, Italy Super precision bearings and engineering support
•
A major Australian customer in the agriculture industry
•
Medical device manufacturer in California,
USA
Maintenance contract
Slewing ring bearings
© SKF Group Slide 27

Examples of new business
•
Tesla Motors
•
Volvo Cars
•
Scania
Bearing for the gearbox, e-motor and wheels
Wheel hub bearing units
Wheel bearing units and high pressure valve stem seals
© SKF Group Slide 28

Customer awards
•
Supplier Performance Award – Snecma, Safran Group, France
•
Best Supplier Award – Weg Electric Motor Manufacturing Co., Ltd, China
•
Best Supplier Award – Shanghai Hanbell Precise Machinery Co. Ltd., China
•
Excellent Engineering Development Award – Shanghai Automobile
Gear Works (SAGW), China
•
Fiat Qualitas Award – Fiat, Argentina
•
Certificate of Appreciation for quality and delivery performance – Honda, India
© SKF Group Slide 29

Highlights
•
New Kaydon factory at the SKF Campus in Cajamar, Brazil.
•
New Global Technical Center in the greater Chicago area, US.
•
For the 15th year in a row, one of the world’s most sustainable companies by the Dow Jones Sustainability
World Index (DJSI).
•
For the 14th consecutive year, a constituent of the
FTSE4Good Index Series.
© SKF Group Slide 30

Examples of new products and solutions
SKF Multilog Online
System IMx-B
Compact tapered roller bearing unit for heavy freight
SKF Mudblock cassette seals,
MUD 11
Tapered roller bearing unit for passenger railway applications
SKF Machine
Tool Observer MTx
SKF Multilog
On-line System IMx-M
SKF Static
Motor Analyzer
Baker AWA-IV PuraBreeze 100
© SKF Group

SKF Group – Q3 2014
Financial performance (SEKm) 2014
Net sales
Operating profit
Operating margin, %
Operating margin excl. one-time items, %
17,787
2,073
11.7
11.8
Profit before tax
Basic earnings per share, SEK
1,827
3.01
Cash flow after investments before financing excl. EU payment 1,476
Cash flow after investments before financing 1,476
Organic sales growth in local currency:
SKF Group
Strategic Industries
Regional Sales and Service
Automotive
3.3%
9.1%
0.8%
-0.5%
Europe
North America
Asia
Latin America
Middle East and Africa
Key points
Sales volumes up by 1.9% y-o-y.
Manufacturing was relatively unchanged compared to last year.
© SKF Group
Slide 32
2013
15,623
1,923
12.3
12.9
1,717
2.47
1,135
1,135
0%
3%
8%
0%
7%

SKF Group – Nine month 2014
Financial performance (SEKm) 2014
Net sales
Operating profit
Operating margin, %
Operating margin excl. one-time items, %
52,476
6,193
11.8
11.8
Profit before tax
Basic earnings per share, SEK
5,375
8.27
Cash flow after investments before financing excl. EU payment 2,640
Cash flow after investments before financing -185
Organic sales growth in local currency:
SKF Group
Strategic Industries
Regional Sales and Service
Automotive
4.6%
8.7%
1.7%
2.8%
Europe
North America
Asia
Latin America
Middle East and Africa
Key points
Sales volumes up by 3.8% y-o-y.
Manufacturing was slightly higher compared to last year.
© SKF Group
Slide 33
2013
47,167
5,240
11.1
12.2
4,581
6.57
1,390
1,390
2%
3%
11%
1%
14%

Organic sales growth in local currency
-6
-8
-10
-2
-4
2
0
% change y-o-y
8
6
4
2012 2013 2014
© SKF Group Slide 34

Organic sales growth in local currency
4
2
0
-2
-4
% y-o-y
6
-2.5%
2012
-0.7%
2013
Structure in 2012: 0.4%
Structure in 2013: 2.5%
Structure in 2014: 4.7%
© SKF Group Slide 35
4.5%
YTD 2014

Sales development by geography
Organic growth in local currency Q3 2014 vs Q3 2013
Europe
0%
North
America
3%
Latin
America
0% Middle East
& Africa
7%
© SKF Group Slide 36
Asia/Pacific
8%

Sales development by geography
Organic growth in local currency YTD 2014 vs YTD 2013
Europe
2%
North
America
3%
Latin
America
1% Middle East
& Africa
14%
© SKF Group Slide 37
Asia/Pacific
11%

Components in net sales
Percent y-o-y
2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Volume -0.8
-2.8
-5.0
-5.9
-8.7
-1.6
2.2
7.1
6.2
3.6
1.9
Structure
Price/mix
Sales in local currency
Currency
-0.1
0.0
0.8
1.0
1.5
2.6
1.1
4.8
4.7
3.8
5.4
1.9
2.0
0.5
0.7
0.7
-0.6
-0.2
-0.2
-0.4
1.0
1.3
1.0
0.4
-0.8
3.6
-3.7
-2.7
-4.2
-3.6
-6.5
-4.0
0.4
-5.0
3.1
-2.2
11.7
-2.1
10.5
-0.1
8.4
1.1
8.6
5.3
Net sales 1.4
2.8
-6.4
-7.8
-10.5
-4.6
0.9
9.6
10.4
9.5
13.9
© SKF Group Slide 38

Operating profit as reported
SEKm
2 500
2 000
1 500
1 000
500
0
-500
-1 000
-1 500
-2 000
2012
© SKF Group Slide 39
2013 2014

Operating profit excluding one-time items
SEKm
2500
2000
1500
1000
500
0
2012
© SKF Group Slide 40
2013 2014

Operating margin
8
6
4
2
0
%
16
14
12
10
© SKF Group Slide 41
12.0*
11.3
2012
11.9*
5.8
2013
One-time items
* Excluding one-time items
11.8
YTD 2014

Operating margin per business area as reported
12
9
6
%
18
15
3
0
-3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014
Regional Sales and Service
Specialty Business
Strategic Industries
Automotive
© SKF Group Slide 42

Operating margin per business area excl. one-time items
12
9
6
%
18
15
3
0
-3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014
Regional Sales and Service
Specialty Business
Strategic Industries
Automotive
© SKF Group Slide 43

SKF’s programme to improve efficiency and reduce cost
Cost taken
People affected
Restructuring, SEKm :
Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Q2/14 Q3/14 Total
200 250 190
530 410 320
0 50 490
0 130 860
Giving future gross savings, SEKm :
Full year gross saving 150 100 80 0 40 220
0 100
0 170
0 100
20 810
30 1,590
5 475
Realized gross savings from total programme, SEKm : vs 2012 vs 2013
Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Q2/14 Q3/14 2014
Restructuring 15 35 75 75 200 70 50 10 130
S&A
Purchasing
Total
50 50 50 50
100 100 100 100
165 185 225 225
200
400
0
60
0
100
800 130 150
0 0
100 260
110 390
Note: Run rate Q3 2014 SEK 1,340 million vs 2012.
© SKF Group Slide 44

Operating profit bridge, Q3 2014
SEKm
3000
2500
2000
1500
1,923
+30
+165
+112
+110
+65
+100 -432
2,073
1000
500
0
Q3 2013 Volumes excl.
Specialty
Business
Price/mix Specialty
Business
Savings One-time items
Currencies Other* Q3 2014
* R&D, S&A, IT, inflation etc.
© SKF Group Slide 45

Operating profit bridge, nine month 2014
SEKm
8000
7000
6000
5000
4000
3000
2000
1000
0
5,240
+430
+225
+352
+390
+505 -120
-829
6,193
Q1-Q3
2013
Volumes excl.
Specialty
Business
Price/mix Specialty
Business
Savings One-time items
Currencies Other* Q1-Q3
2014
* R&D, S&A, IT, inflation etc.
© SKF Group Slide 46

Net working capital as % of annual sales
33
32
31
30
%
35
34
29
28
27
26
25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014
Target: 27%
© SKF Group Slide 47

Return on capital employed
One-time items
* Excluding one-time items
%
20
17.1*
16.2
15.1*
13.9*
15
10
8.5
7.5
5
0
2012 2013 30 September 2014
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 48

Cash flow, after investments before financing
SEKm
2 000
1 000
0
-1 000
-2 000
-3 000
-4 000
-5 000
-6 000
-7 000
2012
1)
2)
3)
4)
2013 2014
Excl. acq. and div.: 1) Q3 2012 SEK 1,707 million
2) Q1 2013 SEK -69 million
3) Q3 2013 SEK 871 million
Excl. EU payment
4) Q4 2013 SEK 1,170 million
5) Q2 2014 SEK 1,423 million
© SKF Group Slide 49
5)

Net debt
SEKm
0
-5 000
-10 000
-15 000
-20 000
-25 000
-30 000
-35 000
2012 2013 2014
© SKF Group Slide 50
Net debt: Loans and net provisions for post-employment benefits less short-term financial assets excluding derivatives.
AB SKF, dividend paid
(SEKm)
:
2012 Q2
2013 Q2
2014 Q2
2,504
2,530
2,530
Cash out from major acquisitions (SEKm) :
2012 Q3
2013 Q1
2013 Q4
829
823
7,900
EU payment (SEKm) :
2014 Q2 2,825

Debt structure, maturity years
EURm
900
800
700
600
500
400
300
200
100
0
100 100
110
2015 2016 2017
• Available credit facilities:
EUR 500 million 2019
SEK 3,000 million 2016
EUR 150 million 2017
© SKF Group Slide 51
500 500
850
200
2018 2019 2020 2021
• No financial covenants nor material adverse change clause

October 2014: SKF demand outlook Q4 2014
Demand compared to the fourth quarter 2013
The demand for SKF’s products and services are expected to be relatively unchanged for the Group and for Europe, slightly higher for Asia and North
America and slightly lower for Latin America. It is expected to be slightly higher for Strategic Industries, relatively unchanged for Regional Sales and Service and slightly lower for Automotive.
Demand compared to the third quarter 2014
The demand for SKF’s products and services are expected to be relatively unchanged for the Group and for Europe, slightly higher for Asia and North
America and slightly lower for Latin America. It is expected to be relatively unchanged for Strategic Industries, slightly higher for Regional Sales and
Service and slightly lower for Automotive.
Manufacturing
Manufacturing is expected to be slightly lower year over year and compared to the third quarter.
© SKF Group Slide 52

SKF demand outlook Q4 2014, main regions
Share of net sales
2013
Europe 42%
Asia Pacific 24%
North America 24%
Latin America 7%
Total
Sequential trend for Q4 2014
Q4 2014 vs Q4 2013
+/-
+
+
-
+/-
© SKF Group Slide 53

SKF demand outlook Q4 2014, main business areas
Share of net sales
2013
Strategic
Industries
Regional Sales and Service
29%
39%
Automotive 27%
Total
Sequential trend for Q4 2014
Q4 2014 vs Q4 2013
+
+/-
-
+/-
© SKF Group Slide 54

SKF sequential volume trend Q4 2014, Industries
Share of net sales 2013
29% Industrial distribution
6% Aerospace
13% Industrial, heavy, special and off-highway
11% Industrial, general
5% Energy
4% Railway
2% Two-wheelers and Electrical
14% Cars and light vehicles
11% Vehicle service market
5% Trucks
© SKF Group Slide 55

Guidance for the fourth quarter 2014*
• Tax level: < 30%
• Financial net: around SEK -220 million
• Currency impact on operating profit vs 2013
Q4: SEK +230 million
Full year: SEK +110 million
• Additions to PPE: around SEK 1.7 billion for 2014
* Guidance is approximate and based on current assumptions and exchange rates.
© SKF Group Slide 56

SKF’s priorities
Sustainable profitable growth
•
Expand the platform concept
•
Exploit the asset life cycle approach
•
Develop new products and grow SKF BeyondZero portfolio
•
Extend and grow second brands
•
Acquisitions
Capital efficiency
•
Fixed capital
•
Net working capital
Investments & Innovation
•
New and existing facilities
•
Research and development
•
IT systems and mobility
Cost reduction
•
Business Excellence
•
Consolidation of manufacturing
•
Optimization and productivity improvements
•
Reduction in purchasing costs
© SKF Group Slide 57

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 www.skf.com) under the
Administration Report; “Important factors influencing the financial results", "Financial risks" and "Sensitivity analysis”.
© SKF Group Slide 58

Welcome to the IR website – www.skf.com > Investors
Investor Relations function:
Head:
Marita Björk
Tel: +46 31 3371994
Mobile: +46 705 181994
E-mail: marita.bjork@skf.com
© SKF Group Slide 59 15 July 2014
Investor Relations:
Anna Alte
Tel: +46 31 3371988
Mobile: +46 705 271988
E-mail: anna.alte@skf.com
Event and road shows coordinator:
Helena Karlsson
Tel: +46 31 3372142
Mobile: +46 705 642142
E-mail: helena.karlsson@skf.com

© SKF Group Slide 60 15 July 2014