19 April 2011

1

The SKF Group

Tom Johnstone, President and CEO

19 April 2011

19 April 2011

3Key points, Q1 report

• Strong performance Operating profit: SEK 2,504 m (1,702) Operating margin: 15.0% (11.8)Profit before tax: SEK 2,318 m (1,504)Cash flow: SEK 372 m (32)

• Strong organic sales growth in local currency:SKF Group: +21.4%Europe: +22% Industrial Division: +20.8% North America: +25% Service Division:+22.5% Asia: +22% Automotive Division: +19.8%Latin America: +18%

• Lincoln integration is going according to plan.

Outlook for Q2 for SKF Group• Demand

Significantly higher compared to Q2 2010Slightly higher sequentially compared to Q1 2011

• Manufacturing levelSignificantly higher year over yearRelatively unchanged compared to Q1 2011

19 April 2011

4

New businesses:

• SKF was awarded a contract, worth around SEK 500 million, with Goldwind for SKF Nautilus bearings for their new 2.5 MW direct drive turbine.

• SKF signed a three-year strategic partnership, worth SEK 335 million, with Sandvik Mining and Construction.

• SKF and Konkola Copper Mines Plc in Zambia signed a three-year contract, worth USD 2 million, covering a Predictive Maintenance solution.

• SKF signed a strategic partnership agreement with CITIC Pacific Special Steel Co., Ltd, for cooperation in purchasing, new product and technology development and human resources development.

Highlights Q1 2011

19 April 2011

5

• SKF is building a new factory in Jinan, in the Shandong Province, China. The investment amounts to around SEK 590 million and the factory will initially employ about 500 people.

• SKF signed an agreement to remain as the main partner to the Gothia Cup for an additional three years. SKF will also continue to run the "Meet The World" qualifying tournaments held in around 20 countries globally.

Highlights Q1 2011

Jinan

19 April 2011

6Divestments 2011

• On 1 February 2011, the forging business OMVP, in Villar Perosa, Italy to the German based company Neumayer Tekfor Holding GmbH. OMVP has about 550 employees and net sales of around EUR 100 million, mainly to SKF.

• At the beginning of the second quarter the cage factory in Gothenburg to the Japanese component manufacturer Nakanishi Metal Works CO., Ltd. The factory has 130 employees and will continue to supply SKF.

SKF completed two agreements in line with its strategy to divest non-core component manufacturing:

19 April 2011

7Sales volume

-35-30-25-20-15-10-505

10152025

% change y-o-y

2009 2010 2011

19 April 2011

8Organic growth in local currencies

-30-25-20-15-10-505

10152025

% change y-o-y

2009 2010 2011

19 April 2011

9

Europe+22%

Asia/Pacific +22%

Latin America +18% Middle

East & Africa +4%

North America +25%

Growth development by geography Organic growth Q1 2011 vs Q1 2010

19 April 2011

10

-20,0

14,2

21,4

1,0 0,05,0

-25-20-15-10-505

10152025

2009 2010 YTD March2011

Growth in local currency

% y-o-y

Acquisitions/DivestmentsOrganic growth

-19.0% 14.2% 26.4%

Long-term target: 8% per annum

Total growth

19 April 2011

11Components in net sales

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

-26.9 -30.8 -24.9 -14.1 5.3 16.6 19.0 16.3 20.1

1.4 1.1 1.2 0.4 0.0 0.0 0.0 0.0 5.0

7.1 5.6 3.7 0.3 -0.3 -0.5 0.3 0.9 1.3

-18.4 -24.1 -20.0 -13.4 5.0 16.1 19.3 17.2 26.4

13.6 12.2 6.6 -1.4 -7.7 -5.2 -3.2 -6.2 -10.8

-4.8 -11.9 -13.4 -14.8 -2.7 10.9 16.1 11.0 15.6

Percent y-o-y

Volume

Structure

Price / Mix

Sales in local currency

Currency

Net sales

2009 2010 2011

19 April 2011

12Operating profit

0200400600800

1 0001 2001 4001 6001 8002 0002 2002 4002 600

SEKm

2009

Restructuring and one-time items

2010 2011

19 April 2011

13Operating margin

%

0

2

4

6

8

10

12

14

16

2009

Restructuring and one-time items

2010

Long-term target level: 15%

2011

19 April 2011

14Operating margin

0

2

4

6

8

10

12

14

16

2009 2010 YTD March2011

%

5.7

8.0*

Restructuring and one-time items* Excluding restructuring and one-time

items

15.0

Long-term target level: 15%

14.2*

13.8

19 April 2011

15

-12-10-8-6-4-202468

1012141618

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating margin per division

IndustrialService

Automotive

%

Excluding one-off items(eg. restructuring, impairments, capital gains)

2009 2010 2011

19 April 2011

16

SEKm 2011 2010

Net sales 16,702 14,446

Operating profit 2,504 1,702

Operating margin, % 15.0 11.8

Operating margin excl. restructuring, %

15.0 12.4

Profit before taxes 2,318 1,504

Net profit 1,620 1,070

Basic earnings per share, SEK 3.44 2.27

Cash flow, after investments before financing

372 32

First quarter 2011

19 April 2011

17

18

19

20

21

22

23

24

25

Inventories as % of annual sales

% Long-term target level: 18%

2009 2010 2011

19 April 2011

18Cash flow, after investments before financing

-6 000-5 500-5 000-4 500-4 000-3 500-3 000-2 500-2 000-1 500-1 000

-5000

5001 0001 5002 0002 500

SEKm

2009 2010

Cash out fromacquisitions (SEKm):

2009 2412010 6,799

2011

19 April 2011

19Return on capital employed

0

5

10

15

20

25

30

2009 2010 YTD March 2011

ROCE: Operating profit plus interest income, as a percentage of twelve months average of total assets less the average of non-interest bearing liabilities.

%

9.1

24.0

Long-term target: 27%

25.6

19 April 2011

20Net debt (Short-term financial assets minus loans and post-employment benefits)

-18 000

-16 000

-14 000

-12 000

-10 000

-8 000

-6 000

-4 000

-2 000

0SEKm AB SKF,

dividend paid (SEKm):2009 Q2 1,5942010 Q2 1,594Proposal to the Board to be decided in April:2011 Q2 2,277

2009 2010

Cash out fromacquisitions (SEKm):

2009 2412010 6,799

2011

19 April 2011

21

0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016

Debt structure

Maturity years, EURm

55

446

530

100100

• Credit facilities:EUR 500 m 2014, whereof EUR 400* m

utilizedSEK 3,000 m 2017, unutilized

• No financial covenants nor material adverse change clause

400*

130

19 April 2011

22March 2011: Outlook for the second quarter 2011

Demand compared to the second quarter last yearThe demand for SKF products and services is expected to be significantly higher for the Group and all geographical regions. It will be significantly higher for Industrial Division and the Service Division and slightly higher for Automotive Division.

Demand compared to the first quarter 2011The demand is expected to be slightly higher for the Group, higher in Asia and Latin America, slightly higher in North America and relatively unchanged in Europe. The Industrial Division and the Service Division are expected to be slightly higher and the Automotive Division relatively unchanged.

Manufacturing levelThe manufacturing level will be significantly higher year on year and relatively unchanged compared to the first quarter.

19 April 2011

23Volume trends, regions(based on current assumptions and adjusted for seasonality)

Daily volume trends for: Q1 2011 Q2 2011

Net sales2010

Europe46%

North America

18%

Asia Pacific27%

Latin America

6%

Total

Outlook Q22011 vs

2010

+++

+++

+++

+++

+++

19 April 2011

24Volume trends, divisions(based on current assumptions and adjusted for seasonality)

Daily volume trends for Q2

2011

Net sales2010

Industrial32%

Service36%

Automotive30%

Total

Outlook Q22011 vs

2010

+++

+++

+++

+++

19 April 2011

25

14%

12%

5%

25%

18%

10%

5%

4%

4%

3%

Cars

Vehicle Service Market

Energy

Industrial distribution

Industrial OEM,

General+Special

Industrial OEM, Heavy + Off-

highway

Aerospace

Railway

Trucks

Electrical and two-wheeler

Sequential volume trend main segments Q2 2011(based on current assumptions)

Net sales 2010

19 April 2011

26Guidance for the second quarter 2011

• Tax level: around 30%

• Financial net for the second quarter:Around SEK -175 m

• Exchange rates on operating profit versus 2010Q2: SEK -400 mFull year: SEK -1.2 bn

• Additions to PPE: Around SEK 2.3 bn for 2011

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

19 April 2011

27Key focus areas ahead 2011

• Profit and cash flow- manage currency and material headwinds

• Manufacturing and suppliers to support growth

• Growing segments and geographies

• Initiatives and actions to support long term targets

• Integration of Lincoln Industrial

• Business Excellence and competence development

One SKF and SKF Care as guiding lights

19 April 2011

28Cautionary 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”.

19 April 2011

29