21 April 2009

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The SKF Group

First-quarter results 2009

Tom Johnstone, President and CEO

21 April 2009

2Highlights in the first quarter 2009

SKF

• gained an order from CSR Zhuzhou ElectricLocomotive Co., Ltd. ZELC. 500 electriclocomotives, for Chinese railways, will beequipped with SKF axleboxes and drivesystem bearings. Order value: EUR 14 m.

• won a new contract for the supply oftapered roller bearings to GuangdongFuwa Engineering Manufacturing Co Ltd.Order value: USD 14 m.

Photo: CSR Zhuzhou Electric Locomotive

21 April 2009

3First quarter 2009

SEKm 2009 2008

Net sales 14,849 15,596

Cash flow after investments before financial items 523 -131

Operating margin 5.2 13.1

Operating profit 768 2,040

Profit before taxes 531 1,924

Net profit 394 1,296

Basic earnings per share, SEK 0.86 2.77

21 April 2009

4Growth in local currency

-20

-15

-10

-5

0

5

10

15

2007 2008 YTD March2009

% y-o-y13.2

Acquisitions/DivestmentsOrganic growth

Long-term target level: 6-8% per annum

7.1- 18.4

21 April 2009

5Sales in local currencies (excl. structural changes)

-20

-16

-12

-8

-4

0

4

8

12% change y-o-y

2007 2008 2009

21 April 2009

6Sales volume

-30

-25

-20

-15

-10

-5

0

5

10% change y-o-y

2008 20092007

21 April 2009

7Components in net sales

2007 20092008Percent y-o-y Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2.7 -13.0

2.4

8.5

-2.1

10.3

8.2

0.5

6.4

9.6

-0.9

8.7

6.2

1.3

4.0

11.5

-4.1

7.4

4.9

1.0

3.8

9.7

-1.2

8.5

6.3

1.0

3.2

10.5

-2.0

8.5

9.0

3.7

2.0

14.7

-1.9

12.8

6.9

4.6

2.7

14.2

-2.3

11.9

7.9

4.0

1.8

13.7

-5.6

8.1

Q1

-26.9

1.4

7.1

-18.4

13.6

-4.8

Volume

Structure

Price / Mix

Sales in local currency

Currency

Net sales

21 April 2009

8Operating margin

0

2

4

6

8

10

12

14

2007 2008 YTD March2009

%

12.9 12.2

Long-term target level: 12%

5.2

13.3* 12.7*

6.4*

Restructuring and one-time items

* Excluding restructuring and one-time items

21 April 2009

9Operating margin

% Long-term target level: 12%

2008 2009

0123456789

1011121314

2007

21 April 2009

10Operating margin per division

-15

-10

-5

0

5

10

15

20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Industrial

Service

Automotive

%

2007 2008

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

2009

21 April 2009

11Activities to adapt to lower demand

• Restructuring/impairment programmesPeople Costs charged to operating profit

- announced Q4 2008, around 2,500 SEK 340 m- announced Q1 2009, around 500 SEK 175 m

3,000 SEK 515 m

At the end of March 2009, around 1,300 people had leftunder the programmes.

• In total, around 2,600 people left the Group during H2 2008 and Q1 2009.

• Around 6,000 people in short-time working (Q1 2009).

21 April 2009

12Inventories as % of annual sales

18

19

20

21

22

23

24

25%

2007

Long-term target level: 18%

2008

x excl. currency effects

2009

Inventories versus Q4 2008, in local currencies, were reduced by around SEK 500 million.

21 April 2009

13Return on capital employed

0

5

10

15

20

25

30

2007 2008 YTD March 2009

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

%Long-term target level: 24%

24.9 24.0

18.7

21 April 2009

14Net 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

0

SEKm

AB SKF, dividend paid (SEKm):2006 Q2 1,8212007 Q2 2,0492008 Q2 2,277

Redemption (SEKm):2007 Q2 4,5542008 Q2 2,277

2007 2008 2009

21 April 2009

15AB SKF, long-term debt structure

Amount in million Maturity

Euro Bond EUR 250 2010-06

SEK Bond SEK 1,500 2011-06

Term loan in euro EUR 150 2013-06

Euro Bond EUR 500 2013-12

Euro loan EUR 100 2016-06

Euro loan EUR 100 2014-03

21 April 2009

16Cash flow, after investments before financial items

-800

-600

-400

-200

0

200

400

600

800

1 000

1 200

1 400SEKm

Cash out fromacquisitions (SEKm): 2007 1,2092008 1,284

20092007 2008

21 April 2009

17April 2009: Outlook for the second quarter 2009

The demand for SKF products and services is expected to be significantly lower in the second quarter compared to the secondquarter last year for the Group in total, for all the Divisions and for all regions.

Compared to the first quarter, demand is expected to be slightlylower for the SKF Group in total and lower in Europe, slightly lower in North America and relatively unchanged in Asia and Latin America. Demand is expected to be relatively unchanged for the Automotive Division and slightly lower for both the Industrial and Service Division.

The manufacturing level will be significantly lower year on yearand relatively unchanged compared to the first quarter.

21 April 2009

18Volume trends(based on current assumptions)

Daily volume trends for: Q1 2009 Q2 2009

Net sales2008

Europe 56%

North America 17%

Asia Pacific 19%

Latin America 5%

Total

Outlook Q22009 vs 2008

---

---

---

---

---

21 April 2009

19Volume trend for main segment Q2 2009(based on current assumptions)Net sales 2008

5% Trucks

23% Industrial distribution

12% Industrial OEM, Heavy+Off-highway

20% Industrial OEM, General+Special

13% Cars

3% Electrical and two-wheeler

VSM

Aerospace

Railway

Energy

9%

5%

3%

6%

21 April 2009

20Guidance for the second quarter 2009

• Tax level: around 30%

• Financial net for the second quarter:SEK -220 million

• Exchange rates on operating profit versus 2008Q2: SEK 300 millionFull year: SEK 1 billion

• Additions to PPE: Around SEK 2 billion for 2009

Guidance is approximate and based on current assumptions and exchange rates

21 April 2009

21Key focus areas ahead 2009

• Profit and cash flow- maintain positive price/mix- drive operational efficiency and cost reduction- reduce working capital and investments

• Adjustment of manufacturing output to new demand levels- restructuring- short-time working

• Growing segments and geographies

• Strengthening the platform/segment approach

• Competence development

SKF Care and Six Sigma as guiding lights

21 April 2009

22SKF 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

21 April 2009

23SKF Group Vision

To equip the worldwith SKF knowledge

21 April 2009

24Cautionary 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;

"Most important factors influencing the financial results", "Financial risks" and

"Sensitivity analysis”.

21 April 2009

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