The SKF Group

SKF Investor Relations

April 2012

1

19 April 2012

SKF -

A truly global company

Established: 1907

Sales 2011: SEK 66,216 million

Employees 2011: 46,039

Production sites: around 130 in 32 countries

SKF presence: in over 130 countries

Distributors/dealers: 15,000 locations

Global certificates:

ISO 14001OHSAS 18001 certification

2

19 April 2012

Aerospace

Railway

Off-highway

Trucks

Two-wheeler and Electrical

General industry

Heavy industry

Special industrial equipment

Vehicle Service Market

Industrial distribution

Cars and light trucks

Commercial transport

Industrial business

Net sales by customer segment 2011, excl. Lincoln

Energy

13%

5%

4%

3%

3%

13%

7%6%

5%

10%

26%

5%

2011 organization

structure

3

19 April 2012

6

35

3

8 9

1

86

10

6

0

26

38

19

24

7

13

38

28

42

North America

Latin America

Western

Europe

Eastern Europe

Middle East and Africa

Asia/Pacific

Net sales

Average number of employees

Tangible asset

% of group total

SKF 2011

(18)

(8)(13)

(26) (13)

(14)

(2002) (1998)

(25)(14)(19)

(10) (12) (9)

Sweden

(4) (4) (3)

(5) (12)(15)(3) (9) (3)

(2) (2) (0)

(47) (46) (53)

(6) (5) (4)

(5) (14)(12)(3) (9) (3)

(3) (2) (0)

(48) (44) (53)

4

19 April 2012

SKF Group –

operating margin development

-4-202468

1012141618

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2011

%

5

19 April 2012

To equip the worldwith SKF knowledge

SKF Group Vision

6

19 April 2012

OpenedPlanned

Tianjin

TaiwanShanghai

Pune

Istanbul

JohannesburgBrasil

“IXION”

Colombia

Moscow

HoustonMonterreyMexico

Edmonton

Nordic (Gothenburg)

UK

Germany

Italy

France

17 SKF Solution Factories 2011

7

19 April 2012

SKF Solution Factory

Segments & Application Knowledge Platforms

& Technology

Competence

Capabilities

Sealing

Solutions Mechanical

Services Lubrication

Solutions

Training

Center

Bearing Service Workshop Condition

Monitoring

Services Remote

Monitoring

Center

MaPro/CoMo

Product

Repair A & MC

SKFSolution Factory

8

19 April 2012

Slab continuous caster –

metal industry

Telescopic actuators for mould adjustment

SKF DryLube Bearings and SNL Housings for roll out table

SKF ConRo Top roll line units

SKF ConRo Low roll line units

SKF sealed self-

aligning bearing system (CARB and spherical roller bearings) and centralized lubrication system for roll lines

SKF ConRo Compact roll line units

SKF Caster Analyst System for roll lines

9

19 April 2012

Wheel-loader

–

Construction

Central gearHybrid pinion units

Wheel end•

Integrated smart wheel bearing units with sensors

•

SKF Mudblock

cassette seals

Motor hoodElectromechanical actuators

Chassis lubricationCentralized lubrication systems

10

19 April 2012

New pitch bearingdesign with improvedcorrosion protection

DRTRB-unit “Nautilus”

with segmented cagefor minimized friction

New CRB-design withextra-high carrying capacityfor wind-gearboxes.

XL Hybrid bearingswith ceramic ballsfor superior insulation

SKF WindCon

3.0/WebconIntranet supervisedcondition monitoring

Automatic centralizedlubrication kits for reduced maintenance cost

Wind turbine -

Energy

11

19 April 2012

SKF’s environmentally positive customer solutions

Designed for environment

Designed for environment

A solution that is primarily designed to improve environmental performance by itself

E2 -

30% less energy compared to a standard bearing

SKF’s solutions which realize significant environmental benefits

Applied for environment

Applied for environment

A solution that enables improved environmental performance in a specific application

SKF sensor bearing

Stop-start system

Up to 15% better fuel economy of the car

12

19 April 2012

SKF energy efficient (E2) bearings

PeruIndustria

Textil

Piura•

60,000 E2 deep groove ball bearing

IndiaSangam

Group

ChinaConveyors used in mining industry. 130,000 E2 bearing

IndonesiaLeuwijaya

Textile•

30,000 E2 bearing

•

potential 325,000 for 3 different customers

13

19 April 2012

What is SKF knowledge?

14

19 April 2012

Bearingsand units

SKF’s

platforms

15

19 April 2012

Seals

SKF’s

platforms

16

19 April 2012

Mechatronics

SKF’s

platforms

17

19 April 2012

SKF’s

platforms

Lubrication systems

18

19 April 2012

SKF’s

platforms

Services

19

19 April 2012

Acquisition

2003-2011 Identifying

gaps and opportunities

in all platforms

SealsBearingsand units

LubricationsystemsServices Mechatronics

Products

Technologies

Geographies

Segments

SNFA

(2006)

S2M

(2007)

QPM

(2008)

Economos

(2006)

Macrotech

(2006)

Macrotech

(2009)

Baker

(2007)

PMCI

(2007)

PB&A

(2006)

Monitek

(2006)

Safematic

(2006)

Vogel

(2004)

ALS

(2007)

Sommers

(2005)

ABBA

(2007)

Jaeger

(2005)

Peer

(2008)

GLO

(2008)

TCM (2003)

Scandrive

(2003)

Cirval

(2008)

Lincoln Industrial

(2010)

SKF First-quarter results 2012

Tom Johnstone, President and CEO

19 April 2012

21

19 April 2012

Highlights

Q1 2012

•

SKF signed

an agreement

to acquire

the US-based

General Bearing Corporation for around

USD 125 million on a cash

and debt

free

basis.

•

SKF received

an order worth

around

SEK 350 million from Vestas

for the delivery

of main

shaft

solutions to the Vestas

V112-3.0 MW turbine.

•

SKF was

awarded

two

contracts

totaling

around

SEK 50 million from Siemens Rail Systems for railway projects in Europe. SKF will deliver axle boxes and wheel set bearing units.

•

SKF received orders from one major metal industry customer for SKF ConRo

Compacts worth EUR 1.8 million.

•

SKF signed a three-year contract with Scania. The contract includes bearings for truck wheel end units and transmissions to Scania

production facilities in Brazil.

.

Acquisition:

New businesses:

22

19 April 2012

•

inaugurated two SKF University Technology Centres:

•

held the SKF North American Distributor convention in Florida, and participated in a maintenance fair in Sweden.

• awarded the 140,000 certificate from the SKF Distributor College

•

launched

a range

of informational

and calculation-focused

apps

for iPhone

and iPad.

Highlights

Q1 2012

SKF:

Luleå

University of Technology, for condition monitoring and asset management

Chalmers University of Technology, for sustainability and environment

Foto

: Kar

l Willi

am

Foto

: Rob

in O

lsso

n

23

19 April 2012

Examples

of new products

launched

in 2012

SKF Nautilus

rangeextensions

Servo Actuator

for industrial

applicationsNext

generation SNL, SE housings

A hand-held, 18-volt,

lithium-iongrease

gun

SKF SpeedSensor Unit

Integrated

monotube

seal

SKF Compact

Wire

Steering

Bearing

SKF Solar Hub

SKF ThrusterMonitoring

SKF Bus DoorActuator

24

19 April 2012

SKF Group Q1 2012

Financial performance

Q1 2012

Q1 2011Net sales, SEKm

16,931

16,702Operating profit,

SEKm

2,140

2,504Operating margin, %

12.6

15.0Profit before tax, SEKm

1,981

2,318Cash flow, SEKm

696

372

Organic sales growth in local currency:SKF Group: +1.1%Europe:

-1.2%

Industrial market, Strategic Industries:

+2.5% North America:

+14.7%

Industrial market, Regional Sales and Service:

+3.0%Asia:

-8.1%

Automotive:

-4.2%Latin America:

+11.1%

Key points Sales were relatively unchanged y-o-yManufacturing was significantly lower y-o-yInventories were reduced to 20.5% of sales

25

19 April 2012

Organic sales growth in local currency

0

5

10

15

20

25

20122010 2011

% change y-o-y

26

19 April 2012

Sales volume

-5

0

5

10

15

20

25

% change y-o-y

2010 2011 2012

27

19 April 2012

Europe

-1.2%

Asia/Pacific -8.1%

Latin America +11.1%

Middle East & Africa +2.5%

North America +14.7%

Growth

development

by geography Organic

growth

in local

currency

Q1 2012 vs Q1 2011

28

19 April 2012

-5

0

5

10

15

2010 2011 Q1 2012

Growth in local currency

% y-o-y

Acquisitions/DivestmentsOrganic growth

14.2% 16.3% 1.0%

Long-term target: 8% per annum

Total growth

4.8%

11.5%

0.0%

14.2%

-0.1%1.1%

29

19 April 2012

Components in net sales

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

5.3 16.6 19.0 16.3 20.1 12.6 6.2 0.0 -0.8

0.0 0.0 0.0 0.0 5.0 4.4 5.1 4.8 -0.1

-0.3 -0.5 0.3 0.9 1.3 1.6 2.0 2.8 1.9

5.0 16.1 19.3 17.2 26.4 18.6 13.3 7.6 1.0

-7.7 -5.2 -3.2 -6.2 -10.8 -12.2 -6.3 -2.1 0.4

-2.7 10.9 16.1 11.0 15.6 6.4 7.0 5.5 1.4

Percent y-o-y

Volume

Structure

Price/mix

Sales in local currency

Currency

Net sales

2010 2011 2012

30

19 April 2012

Operating profit

0

300

600

900

1 200

1 500

1 800

2 100

2 400

2 700

SEKm

2010

Restructuring

and one-time

items

2011 2012

31

19 April 2012

Operating margin

%

0

2

4

6

8

10

12

14

16

2010

Restructuring

and one-time

items

2011

Long-term target

level: 15%

2012

32

19 April 2012

Operating margin

0

2

4

6

8

10

12

14

16

2010 2011 Q1 2012

%

Restructuring

and one-time

items

* Excluding

restructuring

and one-time

items

14.7*

Long-term target

level: 15%

14.2*

13.8 14.512.6

33

19 April 2012

0

3

6

9

12

15

18

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating margin per business area

Strategic Industries

Regional Sales and Service

Automotive

%

2010 2011 2012

34

19 April 2012

SEKm 2012 2011

Net sales 16,931 16,702

Operating profit 2,140 2,504

Operating margin, % 12.6 15.0

Profit before taxes 1,981 2,318

Net profit 1,341 1,620

Basic earnings per share, SEK 2.84 3.44

Cash flow, after investments before financing 696 372

First quarter 2012

35

19 April 2012

18

19

20

21

22

23

24

25

Inventories as % of annual sales

% Long-term target level: 18%

2010 2011 2012

36

19 April 2012

Cash flow, after investments before financing

-6 000

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

SEKm

2010 2011 2012

* SEK 798 million,

excluding

SEK 6,799 million for the acquisition

of Lincoln.

*

37

19 April 2012

Return on capital employed

0

5

10

15

20

25

30

2010 2011 Q1 2012

ROCE: Operating profit plus interest income, as a percentageof twelve months rolling average of total assets lessthe average of non-interest bearing liabilities.

%

21.924.0

Long-term target: 27%

23.6

38

19 April 2012

Net debt

-18 000

-16 000

-14 000

-12 000

-10 000

-8 000

-6 000

-4 000

-2 000

0

SEKm

AB SKF, dividend paid (SEKm):2010 Q2

1,5942011 Q2

2,277

2010 2011

Cash out fromacquisitions (SEKm): 2010

6,799

2012

Net debt:

Loans and net provisions for post-

employment benefits less short-term

financial assets excluding derivatives.

39

19 April 2012

0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017 2018

Debt structure

Maturity years, EURm

396

100100

•

Credit

facilities:

EUR 500 million 2014 SEK 3,000 million 2017

•

No financial

covenants

nor

material adverse

change

clause

130

500

110

0

40

19 April 2012

Dividend proposal

AB SKF’s Board proposes to the Annual General

Meeting an increase of the dividend by 10%, giving a dividend of SEK 5.50 (5.00) per share.

The Annual

General Meeting

will

be held

on 25 April.

41

19 April 2012

April 2012:

Outlook for the second quarter 2012

Demand

compared

to the second

quarter

last yearThe demand

for SKF’s

products and services is expected to be slightly higher for the Group. It is expected to be relatively unchanged in Europe and Asia, and significantly higher in North America and Latin America. The demand is expected to be slightly higher for Strategic Industries and Regional Sales and Service and relatively unchanged for the Automotive.

Demand

compared

to the first quarter

2012The demand

for SKF’s

products and services is expected to be slightly higher for the Group. It is expected to be relatively unchanged in Europe, slightly higher in North America and higher in Asia and Latin America. The demand is expected to be slightly higher for all business areas.

Manufacturing

levelThe manufacturing

level is expected to be lower year on year but higher compared to the first quarter.

42

19 April 2012

Demand

outlook

Q2 2012, regions (based

on current

assumptions)

Sequential

trends for: Q1 2012 Q2 2012

Share

of net

sales2011

Europe 46%

Asia

Pacific 26%

North America 19%

Latin America 6%

Total

Q2 2012 vs Q2 2011

+/-

+/-

+++

+++

+

43

19 April 2012

Demand

outlook

Q2 2012, business areas (based

on current

assumptions)

Sequential

trends for Q2 2012

Share

of net

sales2011

Strategic

Industries 31%

Regional Sales

and Service 39%

Automotive 27%

Total

Q2 2012 vs Q2 2011

+

+

+/-

+

44

19 April 2012

5%

26%

18%

13%

10%

10%

6%

3%

5%

4%

Trucks

Industrial Distribution

Industrial OEM, General + Special

Cars

Vehicle

Service Market

Industrial OEM, Heavy

+ Off-highway

Energy

Two-wheelers

and Electrical

Aerospace

Railway

Sequential

volume

trend Q2 2012, main

segments (based

on current

assumptions)

Share

of net

sales

2011*

* excluding

Lincoln

45

19 April 2012

Guidance for the second quarter 2012

•

Tax level: around 30%

•

Financial net for the second quarter:

Around SEK -175 million

•

Exchange rates on operating profit versus 2011

Q2: SEK 125 millionFull year: SEK 200 million

•

Additions to PPE: Around SEK 2.0 billion for 2012

Guidance is approximate and based on current assumptions and exchange rates.

46

19 April 2012

Key focus areas ahead 2012

•

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

47

19 April 2012

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”.

48

19 April 2012

49

19 April 2012

Welcome

to the IR website

–

www.skf.com

> Investors

Investor Relations function:Head:Marita

BjörkTel: +46 31 3371994Mobile: +46 705 181994E-mail: marita.bjork@skf.com

Investor Relations:Anna AlteTel: +46 31 3371988Mobile: +46 705 271988E-mail: anna.alte@skf.com

Event coordinator and assistant:Helena KarlssonTel: +46 31 3372142Mobile: +46 705 642142E-mail: helena.karlsson@skf.com