2007-04-24

1

The SKF Group

First-quarter results 2007

Tom Johnstone, President and CEO

2007-04-24

3Major events 2007

• Introduction of new energy-efficient bearings and solutions.

• Acquisitions:Preventive Maintenance Company Inc. (PMCI),

USAABBA Linear Tech Co., Ltd., Taiwan Automatic Lubrication Systems (ALS), Canada

•SKF invests SEK 600 million to increase capacity in Göteborg.

•Sale of forging business in Luchow, Germany

2007-04-24

4

MSEK 2007 2006

Net sales 14,371 13,289

Operating profit 1,886 1,609

Operating margin 13.1% 12.1%

Profit before taxes 1,825 1,599

Net profit 1,214 1,138

Basic earnings per share, SEK 2.57 2.45

Cash flow after investments before

financing

538 801

Cash flow after operating investments before financial items -653

177

First quarter 2007

2007-04-24

5Operating margin

%

0123456789

1011121314

2005 2006 2007

2007-04-24

6Operating margin

0

2

4

6

8

10

12

14

2005 2006 2007 Q1

%

* excluding income from the jointly controlled company Oy Ovako Ab

12.6

10.8

13.1

10.4*11.3*

2007-04-24

7

0

2

4

6

8

10

12

14

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating margin per division

IndustrialService

Automotive

%

2005 2006 2007

2007-04-24

8Sales in local currencies (excl. structural changes)

0

2

4

6

8

10

12

14

16% change y-o-y

2005 2006 2007

2007-04-24

9Growth development / local currency

% Y-o-Y

02468

101214

2005 2006 2007 Q1

Acquisitions / DivestmentsOrganic growth

7.3 7.5

13.7

2007-04-24

10Net sales development per quarter

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

8.3 7.6 5.1 1.3 6.0 2.5 3.3 8.8 7.9

2.3 0.2 -2.9 -3.7 -4.9 -0.5 1.1 4.6 4.0

3.6 3.6 2.1 2.6 2.9 2.0 2.0 2.3 1.8

14.2 11.4 4.3 0.2 4.0 4.0 6.4 15.7 13.7

-3.2 0.2 3.2 9.4 8.0 1.0 -2.1 -5.8 -5.6

11.0 11.6 7.5 9.6 12.0 5.0 4.3 9.9 8.1

Percent y-o-y

Volume

Structure

Price / Mix

Sales in local currency Currency

Net sales

2005 2006 2007

2007-04-24

11Cash flow, after investments before financing

-1 200-1 000

-800-600-400-200

0200400600800

1 0001 2001 4001 6001 800MSEK

2005 2006

Cash out from acquisitions: 2005 MSEK 4192006 MSEK 2,1292007 Q1 MSEK 214

Cash from Ovako:2006 Q4 MSEK1,217

2007

2007-04-24

12Cash flow after operating investments before financial items

-700

-500-300

-100

100

300500

700

9001 100

1 300

1 500

1 700

2005 2006 2007

MSEK

2007-04-24

13Net cash (Short-term financial assets - loans)

-1 500

-500

500

1 500

2 500

3 500

4 500

5 500

MSEK

AB SKF, dividend paid:

2005 Q2, MSEK 1,366

2006 Q2, MSEK 1,821

2005 Q2, Redemption, MSEK 2,846

2005 2006 2007

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14

18

19

20

21

22

23

Inventories as % of annual sales

%

2005 2006 2007

Target, end 2007 - 18%

2007-04-24

15SKF capital structure

The AB SKF Board proposes to the AGM in April 2007 to decide on:

1.a 12.5% increase in the dividend,SEK 4.50 per share

2.a share split 2:1 combined with anautomatic redemption procedureof one share for SEK 10

3.a mandate to the Board to repurchase up to 5% of the company's share

Adding up to a total distribution to shareholders of SEK 6.6 billion

2007-04-24

16April 2007: Outlook for the second quarter 2007(compared to the first quarter 2007)

The market demand for SKF's products and services in the second quarter of 2007 is expected to be higher for the Group. The demand is expected to be higher in Europe and Latin America, significantly higher in Asia and relatively unchanged in North America. The demand is expected to be higher in the Industrial and Service Division and slightly higher in the Automotive Division.

The manufacturing level for the second quarter will be unchanged compared to the first quarter 2007 and significantly higher compared to the second quarter last year.

2007-04-24

17Volume development

Daily volume trend for: Q1 2007 Q2 2007

Net sales2006

Europe 54%

North America

20%

Asia Pacific 18%

Latin America

5%

Total

Outlook Q22007 vs

2006

++

=

+++

++

++*

Updated in March 2007 from slightly higher to higher.*

2007-04-24

18Financial targets – long term

Operating margin, level 12%

Growth in local currencies, per annum 6-8%

Return on capital employed 24%

Gearing around 50%

Inventories, by end 2007 18%

2007-04-24

19Guidance 2007

• Underlying tax level: around 32-33%

• Financial netQ2: around minus SEK 100-120 million Full year forecast: around minus SEK 500 million

• Exchange ratesQ2: a negative effect of approximately SEK 200 million Full year: a negative effect of approximately SEK 550 million

• Additions to property, plant and equipment: slightly above SEK 2 billion

Guidance based on current assumptions and exchange rates

2007-04-24

20Acquisition – ABBA Linear Tech Co., Ltd.

• Annual turnover: SEK 250

million

• 400 employees

• A leading Asian manufacturer

of profile rail guides.

• Price: SEK 400 million for 90%

shareholding

2007-04-24

21Acquisitions 2007

Automatic Lubrication Systems (ALS)

• Yearly sales: approximately CAD 2 million

• 13 employees

• A leading service company to mobile transportation equipment and industrial machinery customers for lubrication systems

Preventive Maintenance Company

Inc.

• Annual turnover: USD 10 million

• 70 employees

• A market leader in Predicitve maintenance (PdM) services

2007-04-24

22Bearings and units

Acquisitions:

New factories:

Significant manufacturing

expansion:

Restructuring:

Setting new standards:

Bearingsand units

•SNFA SAS, France

•Dalian, China

•Shanghai, China

• Jakarta, Indonesia

•Busan, South Korea

• India

•North America

•Det Norske Veritas and Germanischer Lloyd announced official verification - SKF Explorer bearings has set a new performance standard.

•SKF Life Theory - new standard for bearing life calculations.

• Brazil • Mexico

• France

• Sweden

2007-04-24

23Seals/Mechatronics/Services/Lubrication systems

Services

Acquisitions:

Lubrication systems

•Safematic lubrication, Finland

• Automatic Lubrication Systems, Canada

Seals

Acquisitions:

New factories:

Significant

manufacturing

expansion:

Mechatronics

• ABBA Linear Tech Co., Ltd., Taiwan

•Shanghai, China

•Precision Balancing & Analyzing, USA

•Monitek Australia, Australia

• Preventive Maintenance Company Inc., USA

•Macrotech Polyseal Inc., USA

•Economos Austria GmbH, Austria

•Taegu, Korea

•Bulgaria • India •Mexico

2007-04-24

24SKF Energy efficient bearings

Providing a minimum of 30% reduction in energy consumption.

Deep groove ball bearings Taper roller bearings

2007-04-24

25Energy-efficient solutions

SKF actuators in spot welding cut energy use by more than 90% in welding robots.

SKF actuatorsin buildingscut energy useby 30-50%.

SKF magnetic bearingsin gas compressors reduce energy by 90%.

SKF throttle-by-wire reduces fuel use by 5%in business jets.

SKF Client Energy and Environment Analysis (CEEA)is a web-based tool thatidentifies high-energy consumption areas withinan operation.

2007-04-24

26Cautionary statement

This report 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 20-F report on file with the SEC (United States Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk Factors".

2007-04-24

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