SKF India Limited58th Annual General Meeting

Manish Bhatnagar, Managing Director

SKF India

© SKF Group

What We Strive To Achieve…

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Our Values and Drivers Govern Everything We Do…

Slide 4

Drivers

• Grow with Profit

• Quality

• Innovation

• Simplicity & Speed

• Sustainability

Values

• High Ethics

• Empowerment

• Openness

• Teamwork

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India Macroeconomic Outlook

8.0%7.0% 6.6%

5.8%

Q2 2018 Q3 2018 Q4 2018 Q1 2019

GDP Growth (y-o-y) GDP

Farm

Industry

As GDP Growth hits a 5-year low of 5.8%...

-1%

6%

13%

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-18

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Industrial Production Growth (y-o-y)

IIP

Manufacturing

-20%

5%

30%

-20%

10%

40%

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-18

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-19

PV & 2W Sales Growth (y-o-y)

PV2W

Domestic Consumption is falling with all high-frequency

indicators in decline.

…and Industrial Production enters negative growth rate,

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India Macroeconomic Outlook

71.2%71.8%

74.1%

75.2%

73.8%74.8%

75.9%

Q3

2017

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Q1

2019

Capacity Utilization

However Capacity Utilization is at an 8-quarter high, indicating a potential start to the private capex

cycle…

5.8%

6.3%

6.8%

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-18

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-19

May

-19

Repo Rate

…and RBI has cut Interest Rates an unprecedented

three successive months to spur lending

With the new government having an Absolute

Majority, expect big-ticket reforms in banking, labor

and agriculture

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5 year Financial Highlights

Net Sales*29,960 MINR

PAT3,358 MINR

EPS65.7

*Net sales for Q1 of 2017-18 , year ended 31.3.2017 & 15 months ended on 31.3.2016 includes Excise duty as per Ind AS, whereas 2014 & prior period are excluding Excise duty as per Indian-GAAP. In accordance with Ind AS 18- Revenue, GST (Goods and Services Tax) is not included in net sales w.e.f from July 1, 2017

Rotating Equipment Performance

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Rotating Equipment Performance (REP)

Leverage SKF technology areas

And experience across industries

To Create New Revenue Models by Assuring Performance of

Customer Assets

Assess

Detect

MaintainSolve

Rebuild

Two Metal Re-Rolling Mills needed to upgrade their team’s competence, maintenance processes, practices and translate into reduced total cost of ownership and improved plant productivity…

SKF offered REP Premium Program consisting of maintenance consultancy, product supply and online condition monitoring…

SKF Maintenance Digitization for an AutomotiveMajor based on continuous Remote Monitoring…

• Eliminated surprise breakdowns by warning SMSand mails, allowing the improvement in reliabilityof operation & cost reduction

• Improved efficiency of the asset and maintainedquality of the operation

• Production loss of vehicles was saved byavoidance of unplanned machine downtime

SKF proposed a continuous monitoring reliabilityprogram for a Cement Major consisting of sensors &bearing supplies…

• Reduced human involvement and increased safety

• No catastrophic failures since the date of installation

• Improved asset reliability and predictability ofmachine behavior

World Class Manufacturing 4.0

World Class Manufacturing 4.0: Journey to Smart Factory

• M2M Connectivity• Gantry with Robotics• Additive Manufacturing

Manufacturing

• Realtime Traceability• eKanban Supplier to RI• Digital Stores

Supply Chain

• Augmented Reality• Sensor Based

Monitoring of Assets• Remote Spindle

Monitoring

Maintenance

Community Care

Addressing Sustainable

Development Goals

Touching 52,000+ lives

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Automotive service technician course (3/6 months)

Residential program for rural beneficiaries

Assured employability and entrepreneurship mentoring

YES : Youth Empowerment at SKF

6 Centers Operational

2,200+Beneficiaries

80 % Placement in

Auto OEM Garages

11 Entrepreneurs

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SKF Scholarship for Girls from underprivileged backgrounds

Class 11th onwards for 6 years of future education including Tuition Fees, Books, Hostel Fees & other expenses

8 Drought Affected Districts

80 Girls Benefited

100 % Scholarship

100% Passing & Average

80+% Marks

Udaan Scholarships for Girl Students

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5 years Professional Coaching at SKF funded infrastructure Training at 5 schools per location for younger groups Nutrition, Winning Attitude and Holistic Development Academic Guidance and Communication Skills Trainings

2 Centers 500+

Beneficiaries

75 Students in Professional

Clubs

10+ NationalTournaments

Played

8 Opted as Career

SKF Sports Education Program

Summary

• Our vision, mission, values and drivers define everything we do

• Economic outlook is soft; but SKF presence in different industry verticals helps to contain the impact

• With defining early wins, REP is poised to be a game changer

• Manufacturing 4.0, a proactive revolution in SKF Factories

• Community Care is our way of connecting meaningfully within our local communities

Summary