Tom Johnstone, President and CEO

1. Tom Johnstone, President and CEO CMD 2013

2. Key items • H1 summary and outlook • SKF priorities • Specific focus • - IT investment (UNITE) • - Cost reduction and Purchasing

3. Highlights H1 2013 • Acquisitions and divestments • SKF completed the acquisition of German-based ship components provider Blohm + Voss Industries (BVI) • SKF divested the aerospace metallic rods business • New facilities in India • a new lubrication systems laboratory in SKF Global Technical Centre • a new manufacturing unit in Pune for producing housings for bearings • Two new SKF Solution Factories • Inaugurated in Madrid, Spain and Katowice, Poland • Programme to improve efficiency, reduce cost and strengthen profitable growth continues • one-off costs of around SEK 440 million • annual savings of around SEK 180 million Madrid, Spain Katowice, Poland

4. Highlights H1 2013 Some examples of new business with Pratt & Whitney, to supply engine main shaft bearings with Nordex for delivery of mainshaft bearings and lubrication systems for automated lubrication systems installed in the MSC Home Terminal cranes in Belgium’s Port of Antwerp with a steel and mining company for industrial bearings and units, seals, mechatronics, and services with Öhlins Racing AB for SKF’s integrated monotube seal with the Chinese customer Great Wall for hub bearing units 10-year contract worth SEK 900 million with Turbomeca service contracts worth SEK 200 million in Latin America contract for wheel hub bearing units (HBU3) to Volvo Car Corporation Thrust main shaft bearing, one of the bearings for the ARRANO Engine of TURBOMECA

5. Half year 2013

6. Growth development by geography and by business areaOrganic growth in local currency YTD 2013 vs YTD 2012 Europe-7% NorthAmerica -6% Asia/Pacific -5% Latin America 11% Middle East & Africa -4% SKF Group: -5.1% Strategic Industries: -9.9% Regional Sales and Service -6.3% Automotive 2.0%

7. SKF demand outlook Q3 2013, regions

8. SKF demand outlook Q3 2013, business areas

9. Key items • H1 summary and outlook • SKF priorities • Specific focus • - IT investment (UNITE) • - Cost reduction and Purchasing

10. SKF priorities

11. Growth and operating margin 2002 - 2012 SEKm +51% -12% +17% -4% Operating margin 11.4%, excl. one-time costs 12.0% Operating margin 9.5%

12. Key elements of Sustainable Profitable Growth S2M QPM PEER Cirval Lincoln ABBA GLO Baker ALS GBC BVI Macrotech Platforms Acquisitions 2nd brands Asset life cycle + service New products SKF BeyondZeroportfolio

13. Key items • H1 summary and outlook • SKF priorities • Specific focus • - IT investment (UNITE) • - Cost reduction and Purchasing

14. SKF investment in IT – UNITE programme Preferred by customers, employees and partners. Strong in purchasing and operations. Suppliers Customers Employees Knowledge Engineering Company Operations One SKF UNITE

15. UNITE - One End-to-End Process Forecast-to-Fulfill Customer to Cash Purchase-to-Pay Record-to-Report 1. Go To Market 2. Manage opportunities 3. Process order & confirmation 4. Sales & Operations Planning 5.S&OP Meeting 6. Manage suppliers & contracts Suppliers 7. Order & receive goods/services Customers 10. Deliver & customer Follow-up + Payment 9. Production execution 8. Production scheduling

16. SKF investment in IT – UNITE programme • Multi year programme • New Demand Chain systems • New Finance system • First main installations • Sales unit in Q2 2014 • Sales & Manufacturing unit in Q4 2014 • Estimated cost • SEK ~500 m in 2013 (of which SEK ~300 m capitalised) • SEK ~900 m in 2014

17. Key items • H1 summary and outlook • SKF priorities • Specific focus • - IT investment • - Cost reduction and Purchasing

18. SKF Restructuring programme – costs and expected savings • The savings for the second half 2013 from these programmes will be around SEK 150 million, evenly split between the third and the fourth quarter.

19. SKF Global Spend Total SKF spend Direct Material 18% Steel Raw Material & Rolling Elements Total SKF spend is SEK 36 billion – direct and indirect representing ~ 50% respectively 44% Rings & Subcontracting Components 38% SEK 17.7 billion 19 119 Indirect Material & CAPEX 8% MRO 27% 12% Facility Management Professional Services 13% Logistics 18% IT Total Direct Material Indirect Material 21% CAPEX SEK 15.6 billion Source: Spend cube

20. Challenges in the global supply chain – many factors Natural disasters Geopolitical Risk Supply Chain Disruptions Market demand variations and volatility Price and currency volatility Effective sourcing strategy Global & Local Supplier Relationships Sustainable and Responsible Sourcing Supplier Innovations

21. Key initiatives to achieve savings • Category and business driven purchasing • Supplier consolidation and localization • Leverage of all purchasing power across all businesses • Product, process & system standardization • Total cost approach and leading purchasing practices applied

22. Success Story – localization of cages in China • Target: • China supplier development to secure capacity and Q C D I M targets • SKF benefits: • Access to a supplier base in China close to Dalian • 100% localization • 2 suppliers fully approved in China • Worldwide supplier market base fitting with new SKF manufacturing footprint • Development of a Chinese suppliers base with export capacity Contract Status:2012/2013 Savings:-40/50% vs Import in China

23. Success StoryPackaging – Cross platform leverage Corrugated & Anti-counterfeit packaging • Activity • Combine purchasing of packaging materials across a number of units • SKF benefits • Reduction in supply base • Cost savings • Standardized packaging from one supplier Total Savings: USD 760,000 – 30% savings Supplier reduction: 14 3

24. Success StoryStandardization of capital equipment • HBU3 channel standardization • Equipment for Grinding, Honing, Laser marking and Assembly SEK 280 million of total cost savings • Clear business requirements • Improved sourcing process • Standardization of equipment • Cross business leverage • Regional Asian supplier base developed with global capabilities

25. Purchasing ramp up and saving plan 2013 2014 2015 2016 SEK 1,500 m • Category and business driven organization fully leveraging SKF’s purchasing power • Purchasing supporting the full internal value chain • Focus on Total Cost of Ownership (TCO) • Strong alignment with the business through a clear target setting process • Highly competent purchasing professionals • Reduced supply chain risk and costs through top performing suppliers in Q C D I M • Separation of strategic tasks from transactional tasks • Sourcing waves 2 and continued Speed Sourcing activities • Supplier Innovation Programmes on stream • Strategic Partnership Agreements with key suppliers • Common purchasing processes • Supplier consolidation • New Group Purchasing organization in operation • New process framework • Sourcing waves 1 / Speed sourcing started to leverage spend across all BUs • Integration of BU Purchasing • Localization of the strategic supplier base

26. SKF priorities

27. Key business message • No change in demand outlook for Q3 • SKF priorities in focus – good progress in H1 • New IT investment (UNITE) and purchasing programmes • going according to plan