1) SKF is a global company established in 1907 with over 41,000 employees operating in over 130 countries. 2) In 2009, SKF had net sales of SEK 56.2 billion distributed across various regions and customer segments. 3) SKF's vision is to equip the world with SKF knowledge through its core platforms of bearings, seals, mechatronics, lubrication systems and services.

1. 2008 © SKF Group

2. The SKF Group
2010-03-22

3. SKF - A truly global company
Established: 1907
Sales 2009: SEK 56,227 million
Employees: 41,172
Production sites: more than 120 in 28 countries
SKF presence: in over 130 countries
Distributors/dealers: 15,000 locations
Global certificates: ISO 14001
OHSAS 18001 certification
2008 © SKF Group

4. Net sales 2009
Eastern Europe
Middle East and Africa
5 3
Western Europe
North America
18
46
6
Latin America
23
Asia /Pacific
2008 © SKF Group

5. Net sales by customer segment
Cars and
light trucks
Industrial
distribution
pa ce
A eros
Railway Commercial
Vehicle Service transport
Off-highw
Market ay
al Truc
stri ks
indu
ecial ent
Sp uipm Two-wheeler and
eq General Electrical
Energy industry
Heavy
industry
Industrial business
2008 © SKF Group

6. SKF Group Vision
To equip the world
with SKF knowledge
2008 © SKF Group

7. What is SKF knowledge?
2008 © SKF Group

8. SKF’s platforms
Bearings
and units
2008 © SKF Group

9. SKF’s platforms
Seals
2008 © SKF Group

10. SKF’s platforms
Mechatronics
2008 © SKF Group

11. SKF’s platforms
Lubrication
systems
2008 © SKF Group

12. SKF’s platforms
Services
2008 © SKF Group

13. Acquisition strategy;
Identifying gaps and opportunities in all platforms
Bearings Lubrication
Seals Services systems Mechatronics
and units
Products SNFA (2006) Economos (2006) Safematic (2006) ABBA (2007)
GLO (2008) Macrotech (2006) Jaeger (2005)
Technologies S2M (2007) Baker (2007) Vogel (2004)
Geographies QPM (2008) PMCI (2007) ALS (2007) TCM (2003)
Scandrive PB&A (2006) Sommers (2005)
(2003)
Monitek (2006) Cirval (2008)
Segments Peer (2008)
Green: Acquisitions in 2008.
2008 © SKF Group

14. Continuous development of new market offers
• 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%
Reduced: Grease usage, warranty cost
Increased: Farm productivity &
profitability
SKF Agri Hub
2008 © SKF Group

15. Financial performance
Operating margin Sales growth in local currency
% %
14 12.6 12.9 15 13.2
12.2 11.8
12 10.8 10 7.3* 7.5* 7.1
9.9 5.2
10 5
8.0
8 0
5.7 2003 2004 2005 2006 2007 2008 2009
6 -5
4 -10
2 -15
0 -20
-19.0
2003 2004 2005 2006 2007 2008 2009 -25
* Excl. effects from sale of Ovako: 2005: 10.4%
Return on capital employed 2006: 10.1%
%
26 24.9 24.0
23.0
24 21.9
22
20
19.0 Long-term targets
18
16 14.0 • 12% Operating margin, level
14
12
9.1 • 6-8% Growth per annum (local)
10
8 • 24% Return on capital employed
6
4
2
0
2003
2008 © SKF Group 2004 2005 2006 2007 2008 2009

16. Six Sigma
2009 status:
• 427 Black Belts
• 2,075 Green Belts
• 1,110 projects closed
Hard savings
2005: SEK 150 m
2006: SEK 200 m 4 dimensions:
2007: SEK 302 m ”Standard” Six Sigma, Design for Six Sigma,
2008: SEK 462 m Lean Six Sigma and Six Sigma for Growth
2009: SEK 430 m
2008 © SKF Group

17. SKF Care
Business Care Employee Care
14
12
10
8
6
4
2
0
2003 2004 2005 2006 2007 2008
Operating margin
BeyondZeroTM SKF Care
Environmental Care Community Care
2008 © SKF Group

18. BeyondZeroTM
• Energy efficient bearings
•
•
Mechatronics in welding robots
Actuators in window facade
+
• By-wire auto-throttle in aerospace
• Client Needs Analysis – Energy and
BeyondZero
Sustainability
0
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
2008 © SKF Group

19. Reducing customers emissions
– advanced integrated solutions
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
2008 © SKF Group

20. SKF community projects worldwide
Austria, Basky Germany, OBArt Sweden, Gothia Cup Turkey, Siirt
China,Hope School
Brazil, Communidade
Malaysia, volunteer
Argentina, Garrahan Foundation
South Africa, Legae India, Sports Academy
2008 © SKF Group

21. SKF Commitment
VALUES
High Ethics
Openness
Empowerment
Team Work
DRIVERS
Profitability
Quality
Innovation
Speed
Sustainability
2008 © SKF Group

22. 2008 © SKF Group