SKF Annual General Meeting 2014

Tom Johnstone President and CEO

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Growth development by geography

Europe -3%

Asia/Pacific 2%

Latin America

10% Middle East & Africa 3%

North America

-3%

Organic growth in local currency 2013 vs 2012

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Result 2013

Net sales, SEKm 63,597

Operating profit excl. one-time costs, SEKm 7,568

Operating profit excl. one-time costs, % 11.9

Cash flow, excl. acquisition and divestments, SEKm 3,117 AB SKF’s Board propose a dividend of SEK 5.50 per share.

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SKF’s priorities

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New business 2013, some examples

• wind energy: Nordex, Goldwind

• automotive: Volvo Car Corporation, Hyundai Motors, Fiat, Great Wall Motors

• railway: Tangshan Loco, Changchun Railway Co, Tikhvin Freight Car Building Plant, CSR Zhuzhou Electric Co., Ltd.

• aerospace: Turbomeca, Embraer

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Documented Solutions Programme

SEK 27 billion

in accumulated approved savings for customers 2003–2013

2003 SEK 623 million 2013 SEK 27 billion

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Acquisitions 2013

Blohm + Voss Industries (BVI) Kaydon Corporation

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• Headquarter in Ann Arbor, Michigan, USA • Founded 1941 • Sales: USD 475 million • Employees: 2,187

Friction control 54% Specialty products 23% Velocity control 23%

Ring & Seal Bearing

Kaydon Corporation – key data 2012

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Research and development

R&D spending

2,9%

of annual sales

R&D investment growth

16%

compared to last year

650

recorded invention disclosures

468

first filing of patent applications

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Examples of new products

High pressure valve stem seal with lower friction

SKF Extended Life spherical plain bearing

An energy efficient high speed permanent magnet solution

Sealed SKF single row angular contact ball

bearings

Reinforced all-rubber HSS seals

V-ring seals

SKF Axial excluder seal

SKF Condition Based Lubrication

Anti-corrosion coating

SKF Telescopic pillars series CPMA and CPMB

Robust angular steering column bearing

SKF InsightTM Internally powered sensors and data acquisition electronics sensing directly on the bearing

© SKF Group

Examples of new products

High pressure valve stem seal with lower friction

SKF Extended Life spherical plain bearing

An energy efficient high speed permanent magnet solution

Sealed SKF single row angular contact ball

bearings

Reinforced all-rubber HSS seals

V-ring seals

SKF Axial excluder seal

SKF Condition Based Lubrication

Anti-corrosion coating

SKF Telescopic pillars series CPMA and CPMB

Robust angular steering column bearing

SKF InsightTM Internally powered sensors and data acquisition electronics sensing directly on the bearing

© SKF Group

SKF BeyondZero portfolio

SKF LubriLean replaces high pressure coolant system for metal cutting processes. This can save over 50% of the energy and 90% of the oil and water.

SKF extreme temperature bearings reduce around 80% of greenhouse gas emissions by increased service life and elimination of grease lubrication.

SKF High pressure valve stem seals enables downsizing of engines. A downsized engine can save 270 kg CO2 per car and year.

Today over 40 solutions/activities, some examples:

Sales 2013: SEK 3.3 billion Target 2016: SEK 10 billion

The SKF E2 tapered roller bearing for truck final drives. Reduce friction up to 30%, which helps improve the overall fuel economy.

SKF Remanufacturing services allows for reduced waste, saved resources, energy and associated emissions.

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UNITE Programme

UNITE

New IT infrastructure

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Apps make SKF’s knowledge easy to access

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Purchasing built on three cornerstones

Category and project driven organization

Business driven Global

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Capital efficiency

18

20

22

24

26

28

30

02 03 04 05 06 07 08 09 10 11 12 13 *

-8 percentage points in 11 years

25

26

27

28

29

30

31

32

33

34

35

02 03 04 05 06 07 08 09 10 11 12 13 *

Relatively unchanged over 11 år

Plant and property as % of sales Net working capital as % of sales

• Keep the level of plant and property

• Increase focus on net working capital - work with flexibility in our factories to reduce inventory - improve collection of accounts receivables - get effects on A/P from new purchasing activities

* Excluding Kaydon * Excluding Kaydon

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2013 – an eventful and challenging year

• Gained new important contracts

• Launched new products – many focusing on energy efficiency

• Acquired two new companies – Kaydon and BVI

• Broadened the cooperation with customers through asset life cycle

• Focus on investments and innovation

• Focus on improving efficiency and reducing costs

© SKF Group 31 March 2014 Slide 18