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7 Lubrication Robert LawDirector Business unit Lubrication SKF Group12 September 2014Page 1CMD 2014 SKF Group

Timeline and acquisitionsWilly Vogel AG(Germany)

Sommers(Sweden)Safematic(Finland)Alemite(USA)

Reelcraft(USA)ALS(Canada)

Lincoln(USA)

2004200520062007200820092010

SKF acquisitionsLincoln acquisitions

LincolnHelios IndiaCirval(Argentina)Global leader in the automated lubrication systems market

CMD 2014 SKF Group2CMD 2014 SKF GroupCompetitive advantages lubrication business

Broadest offering in the industryGlobal presence and local knowledgePremium product brandsExperienced employees and partners

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Go to market structure Automatic lubrication systems We go to market as SKF with the two leading brands SKF and LincolnOpens up the opportunity to reach out with our full line offering to more customersAbout 50% of sales via distributors/ system housesDistributors are very knowledgeable and responsible for sales, installation services and after marketReelcraft and Alemite own sales channelsCustomersOne Portfolio

Local sales teamsDistributors/system housesCMD 2014 SKF Group12 September 2014Page 4CMD 2014 SKF GroupPartner testimonials Our partners express great pride and benefits working with SKF and having access to our full-line lubrication solutions offering

Two leading brands, one global leaderSome testimonials from our partners ...CMD 2014 SKF Group5CMD 2014 SKF GroupTwo leading brands, one global leader.

CMD 2014 SKF Group6CMD 2014 SKF GroupLoyal customers and partners our key for successGood net promoter scoreCommunications unified market communications, external webinars, product launchesService improving availability, speed of responseInformation smart solutions for easy access information

8 major product launches in 201448 trade showsTraining by product, solution & applicationSKF LubCADLubrication systems configuratorWeb shop facility

CMD 2014 SKF GroupServices and asset life cycle offeringOur automatic lubrication systems are well prepared for integration with the other platformsThis enables other SKF units to enhance their asset life cycle offering and business e.g. condition based lubrication for renewable industryTogether with our partners we have a full line offering of services in:design, installation, commissioning, monitoring, maintenance and repair

CMD 2014 SKF GroupGlobal footprintSt. Louis, USWalldorf, DEHockenheim, DEBerlin, DEChodov, CZEnschede, NLSt Cyr, FRMuurame, FICormano, ITCorby, UKManufacturing sitesJohnson City, USShelby Township, USHampton, USColumbia City, USChangshu, CNChangzhou, CNOsaka, JPBangalore, INRosario, ARShanghai, CNFort Mill, USProduct development sitesSupported bymany more sales offices+5,000 partnerscovering the global marketLinkping, SEBanbury, UKCMD 2014 SKF Group9CMD 2014 SKF Group

Manufacturing efficiency and major projectsOptimizing the global manufacturing footprint and capacity by taking the best from the two merged companiesTo further improve cost leadership

Major projectsRelocation of sourcing and manufacturing to best cost countriesInvesting in factory expansion Chodov CZInvesting in a new facility in IndiaRelocation in France from Saumur to St CyrRelocation of St Louis factory

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Product portfolio and launchesProductharmonisation

Over time the Lincoln and SKF products will be harmonised to feature the best of the best whilst investing to make the best better8 major launches in 2014 three examples

Next generation 20v Li Ion battery power grease gun PPS-30 New compact pneumatic pump TLMR Automatic lubricant dispenserCMD 2014 SKF Group11CMD 2014 SKF GroupWhat automated lubrication does for our customers?REDUCEEnergy consumptionOperating expensesDowntime Lubricant consumption WasteINCREASEProductivityService intervalsSafetySustainabilitySKF is leading the technology shift from manual to automatic lubrication and realising these business benefitsCMD 2014 SKF GroupCMD 2014 SKF GroupOptimal lubrication is the key to a centralized system

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Increasing adoption rate for automatic lubrication80% of lubrication points are still manually lubricatedThe adoption rate is increasing to capture the automatic lubrication systems benefitsBig opportunity for SKF

ManuallubricationAutomatic lubricationsystems

5-15%

1-10%

25-35%

5-50%

25-85%

80-95%Adoption rates key industries servedCMD 2014 SKF Group12 September, 2014Page 1414CMD 2014 SKF GroupEnvironmental and business impactAutomated lubrication uses 33% less grease than manual lubricationAutomated lubrication globally saves 200 million kg of grease per annum =300,000 tonnes CO2e SKF saves users 60,000 tonnes CO2e and SEK 2,000 million in cash in reduced grease cost per annum

This with only 20% of all lubrication points using automated lubrication!

Imagine the value if a company could combine their knowledge on bearings, seals, mechatronics, service and lubrication, and develop event-based automatic lubrication systems?CMD 2014 SKF Group15CMD 2014 SKF GroupEnvironmental and business impactAutomated lubrication uses 33% less grease than manual lubricationAutomated lubrication globally saves 200 million kg of grease per annum =300,000 tonnes CO2e SKF saves users 60,000 tonnes CO2e and SEK 2,000 million in cash in reduced grease cost per annum

This with only 20% of all lubrication points using automated lubrication!

CMD 2014 SKF Group16CMD 2014 SKF GroupLubrication key business messagePositive business developmentLoyal customers and partnersGlobal coverageFull line offering of products, services and solutionsHuge market potential to growCMD 2014 SKF Group17CMD 2014 SKF Group