16 October 2007

1

The SKF Group

Nine-month results 2007

Tom Johnstone, President and CEO

16 October 2007

3Major events during the third quarter 2007

• SKF signed an agreement to acquire the magnetic bearing company S2M. The acquisition is subject to approval by relevant authorities.

• SKF and Meridium, Inc. signed an agreement allowing SKF to license and distribute Meridium’s software and to provide consultation, implementation and training services for asset management using Meridium APM software applications.

• SKF has been selected to be a member of Dow Jones' Sustainability World Indexes (DJSI World) and the pan-European sustainability benchmark (DJSI STOXX) for the eighth year in succession.

16 October 2007

4

SEKm 2007 2006

Net sales 14,155 12,544

Operating profit 1,803 1,538

Operating margin 12.7% 12.3%*

Profit before taxes 1,646 1,422

Net profit 1,174 966

Basic earnings per share, SEK 2.48 2.06

Cash flow after operating investments before financial items 1,274 -143

Cash flow after operating investments before financial items, excluding acquisitions

1,237 1,380

Third quarter 2007

* 11.9% excluding Ovako

16 October 2007

5

SEKm 2007 2006

Net sales 43,489 39,206

Operating profit 5,708 4,849

Operating margin 13.1% 12.4%*

Profit before taxes 5,428 4,541

Net profit 3,662 3,175

Basic earnings per share, SEK 7.76 6.81

Cash flow after operating investments before financial items 1,509 597

Cash flow after operating investments before financial items, excluding acquisitions

2,212 2,265

Nine months 2007

* 11.7% excluding Ovako

16 October 2007

6Operating margin

%

0123456789

1011121314

2005 2006 2007

16 October 2007

7Operating margin

0

2

4

6

8

10

12

14

2005 2006 YTD September2007

%

* excluding income from the jointly controlled company Oy Ovako Ab

12.6

10.8

13.1

10.4*11.3*

16 October 2007

8

0

2

4

6

8

10

12

14

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Operating margin per division

Industrial

Service

Automotive

%

2005 2006 2007

16 October 2007

9Sales in local currencies (excl. structural changes)

0

2

4

6

8

10

12

14

16% change y-o-y

2005 2006 2007

16 October 2007

10Growth development / local currency

% Y-o-Y

02468

101214

2005 2006 YTD September2007

Acquisitions / Divestments

Organic growth

7.3* 7.5*

14.2

* Excluding effect from Ovako: 200510.4%2006 10.1%

16 October 2007

11Net sales development per quarter

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

8.3 7.6 5.1 1.3 6.0 2.5 3.3 8.8 7.9 6.9 9.0

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

3.6 3.6 2.1 2.6 2.9 2.0 2.0 2.3 1.8 2.7 2.0

14.2 11.4 4.3 0.2 4.0 4.0 6.4 15.7 13.7 14.2 14.7

-3.2 0.2 3.2 9.4 8.0 1.0 -2.1 -5.8 -5.6 -2.3 -1.9

11.0 11.6 7.5 9.6 12.0 5.0 4.3 9.9 8.1 11.9 12.8

Percent y-o-y

Volume

Structure

Price / Mix

Sales in local currency Currency

Net sales

2005 2006 2007

16 October 2007

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

SEKm

Cash out from acquisitions (SEKm): 2005 4192006 2,129YTD September 2007 703

Cash in from Ovako (SEKm):2006 Q4 1,2172007 Q2 46

16 October 2007

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

-6 000

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

SEKm

AB SKF, dividend paid (SEKm):

2005 Q2 1,3662006 Q2 1,8212007 Q2 2,049

2005 Q2, redemption 2,8462007 Q2,redemption 4,554

2005 2006 2007

16 October 2007

14

18

19

20

21

22

23

Inventories as % of annual sales

%

2005 2006 2007

Target, end 2007: 18%

16 October 2007

15Return on capital employed

19

20

21

22

23

24

25

26

27

2005 2006 YTD September2007

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

%

16 October 2007

16September 2007: Outlook for the fourth quarter 2007(compared to the third quarter 2007)

The market demand for SKF's products and services in the fourth quarter of 2007 is expected to be higher for the Group. The demand is expected to be higher in Europe, significantly higher in Asia and Latin America and relatively unchanged in North America. The demand is expected to be higher in all divisions.

The manufacturing level for the fourth quarter 2007 will be unchanged compared to the third quarter 2007, while higher in absolute terms due to normal seasonality, and significantly higher than the fourth quarter 2006.

16 October 2007

17Volume development

Daily volume trend for: Q3 2007 Q4 2007

Net sales2006

Europe 54%

North America

20%

Asia Pacific 18%

Latin America

5%

Total

Outlook Q42007 vs

2006

++

=

+++

+++

++

16 October 2007

18Financial targets – long term

Operating margin, level 12%

Growth in local currencies, per annum 6-8%

Return on capital employed 24%

Gearing around 50%

16 October 2007

19Guidance 2007

• Tax level: around 32-33%

• Financial netAround minus SEK 130 million per quarter

• Exchange rates on operating profit versus 2006Q4: a negative effect of approximately SEK 130 million Full year: a negative effect of approximately SEK 630 million

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

Guidance based on current assumptions and exchange rates

16 October 2007

20New automotive business

Ford Motor Company

Front and rear wheel bearings for the new Ford Focus

Shanghai Automotive Industry Corporation Front and rear wheel bearings for a new car platform

Fiat Group Automobiles Rear wheel bearing for a new Alfa Romeo platform

Gigant Group Integrated truck hub unit

16 October 2007

21New railway business

Bombardier Transportation

a special tapered roller bearing design to the Ile de France suburban trains

Photo: Bombardier Transportation

16 October 2007

22Cautionary statement

Cautionary 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 annual report (available on www.skf.com) under the Board of Directors' Report; "Most important factors influencing the financial result", "Financial risks" and "Sensitivity analysis", and in this quarterly report under "Risks and uncertainties in the business."

16 October 2007

23