2008 © SKF Group

The SKF Group

SKF - A truly global company

2008 © SKF Group

Established: 1907

Sales 2008: SEK 63,361 million

Employees: 44,799

Production sites: 110 in 28 countries

SKF presence: in over 130 countries

Distributors/dealers: 15,000 locations

Global certificates: ISO 14001

OHSAS 18001 certification

SKF sales 2008 by geography

2008 © SKF Group

Western Europe

Asia / Pacific

Middle East and Africa

North America

Eastern Europe

Latin America

1719

3

5

5

51

2008 © SKF Group

Aerospace

Railway

Off-highway

Trucks

Two-wheeler and Electrical

General industry

Heavy industry

Special industri

al

equipment

Vehicle Service Market

Industrial distribution

Cars and light trucks

Commercial transport

Industrial business

Net sales by customer segment

Energy

2008 © SKF Group

SKF Group Vision

To equip the worldwith SKF knowledge

What is SKF knowledge?

2008 © SKF Group

SKF’s platforms

2008 © SKF Group

Bearingsand units

SKF’s platforms

2008 © SKF Group

Seals

SKF’s platforms

2008 © SKF Group

Mechatronics

SKF’s platforms

2008 © SKF Group

Lubricationsystems

SKF’s platforms

2008 © SKF Group

Services

Investing in the future

2008 © SKF Group

Organic * Investing above depreciation* 9 new factories

(2 under development, 1 postponed)* Significant investment in existing operations

(eg Sweden, Germany)

Acquisitions * Over SEK 5.2 billion invested * 20 acquisitions – all platforms

R&D & AE * New energy efficient bearings and solutions* New market offers/products

~SEK 24 billion (~EUR 2.5 billion) invested since 2003

Acquisition strategy;Identifying gaps and opportunities in all platforms

2008 © SKF Group

Seals ServicesBearingsand units

Lubricationsystems Mechatronics

Products

Technologies

Segments

Geographies

Safematic (2006) ABBA (2007)Economos (2006)SNFA (2006)

GLO (2008) Jaeger (2005)Macrotech (2006)

S2M (2007) Vogel (2004)Baker (2007)

TCM (2003)PMCI (2007) ALS (2007)QPM (2008)

PB&A (2006) Sommers (2005)Scandrive(2003)

Monitek (2006) Cirval (2008)

Peer (2008)

Green: Acquisitions in 2008.

Continuous development of new market offers

2008 © SKF Group

• Offer for the agriculture industry

• Five times increased farm productivity (20,000->100,000 ha)

• Reduced cost of ownership by 30%

• Reduced seed bed pollution up to 500 kg of grease / machine

• Reduced cost of management by 90%

SKF Agri Hub

Reduced: Grease usage, warranty costIncreased: Farm productivity &

profitability

2008 © SKF Group

0

2

4

6

8

10

12

14

2003 2004 2005 2006 2007 2008

Financial performance

Operating margin

9.910.8

12.6

8.0

0

2

4

6

8

10

12

14

2003 2004 2005 2006 2007 2008

5.2

11.8

7.3 7.5

Sales growth in local currency12.9 13.2

10

12

14

16

18

20

22

24

2003 2004 2005 2006 2007 2008

13.9

19.0

21.8

24.7 25.4

Return on capital employed

%

%

%12.2

7.1

24.2

Long-term targets• 12% Operating margin level• 6-8% Growth per annum (local)• 24% ROCE

Six Sigma

2008 © SKF Group

2008 H1 status:• 18 Master Black Belts

• 410 Black Belts

• 1,950Green Belts

• 1,128 projects closed whereof 59 replicated

• 879 projects ongoing

Hard savings2005: SEK 150 m 2006: SEK 200 m2007: SEK 302 m2008: SEK 462 m

4 dimensions:”Standard” Six Sigma, Design for Six Sigma, Lean Six Sigma and Six Sigma for Growth

2008 © SKF Group

SKF Care

Employee Care

Community CareEnvironmental Care

Business Care

BeyondZeroTM

0

2

4

6

8

10

12

14

2003 2004 2005 2006 2007 2008

SKF Care

Operating margin

BeyondZeroTM

2008 © SKF Group

• Energy efficient bearings• Mechatronics in welding robots• Actuators in window facade• By-wire auto-throttle in aerospace• Client Needs Analysis – Energy and

Sustainability

Reduce energy intensity• Energy training + energy toolbox• Energy efficient pumps• Energy efficient motors• Waste heat recovery• Improved window insulation

Reduce carbon intensity• On-site solar power• Sourcing renewable energy

0

-

+BeyondZero

Reducing customers emissions – advanced integrated solutions

2008 © SKF Group

SKF Hybrid Pinion Unit

• Rear- and All Wheel Driven vehicles

• Sustainability: Reduction potential of up to 3 g CO2 per km through reduced friction by 30 %

• Improved stiffness and easy and reliable mounting at the customer

SKF community projects worldwide

2008 © SKF Group

Germany, OBArtAustria, Basky Sweden, Gothia Cup Turkey, Siirt

Malaysia, volunteer

Argentina, Garrahan Foundation

India, Sports Academy

Brazil, Communidade

South Africa, Legae

China,Hope School

2008 © SKF Group

SKF Commitment

High EthicsOpennessEmpowermentTeam Work

VALUES

DRIVERSProfitabilityQualityInnovationSpeedSustainability

2008 © SKF Group