The SKF Group

Nine-month results 2007

Tom Johnstone, President and CEO

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Major events during the third quarter 2007SKF 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 Meridiums 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.

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Third quarter 2007* 11.9% excluding Ovako

SEKm20072006Net sales 14,15512,544Operating profit 1,8031,538Operating margin12.7%12.3%*Profit before taxes 1,6461,422Net profit 1,174966Basic earnings per share, SEK2.482.06Cash flow after operating investments before financial items1,274-143Cash flow after operating investments before financial items, excluding acquisitions1,2371,380

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Nine months 2007* 11.7% excluding Ovako

SEKm20072006Net sales 43,48939,206Operating profit 5,7084,849Operating margin13.1%12.4%*Profit before taxes 5,4284,541Net profit 3,6623,175Basic earnings per share, SEK7.766.81Cash flow after operating investments before financial items1,509597Cash flow after operating investments before financial items, excluding acquisitions2,2122,265

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Operating margin% 200520062007

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Operating margin %*excluding income from the jointly controlled company Oy Ovako Ab12.610.813.110.4*11.3*

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Operating margin per division

IndustrialServiceAutomotive%200520062007

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Sales in local currencies (excl. structural changes)% change y-o-y200520062007

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Growth development / local currency

% Y-o-YAcquisitions / DivestmentsOrganic growth7.3*7.5*14.2* Excluding effect from Ovako:200510.4%200610.1%

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Net sales development per quarter Percent y-o-y200520062007

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q38.37.65.11.36.02.53.38.87.96.99.02.30.2-2.9-3.7-4.9-0.51.14.64.04.63.73.63.62.12.62.92.02.02.31.82.72.014.211.44.30.24.04.06.415.713.714.214.7-3.20.23.29.48.01.0-2.1-5.8-5.6-2.3-1.911.011.67.59.612.05.04.39.98.111.912.8

Volume Structure Price / Mix Sales in local currency Currency

Net sales

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Cash flow, after operating investments before financial items200520062007SEKmCash out from acquisitions (SEKm): 2005 4192006 2,129YTD September 2007 703

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

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Net cash (Short-term financial assets - loans)SEKmAB SKF, dividend paid (SEKm):2005 Q2 1,3662006 Q2 1,8212007 Q2 2,049 2005 Q2, redemption 2,8462007 Q2,redemption4,554200520062007

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Inventories as % of annual sales%200520062007Target, end 2007: 18%

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Return on capital employedROCE: Operating profit plus interest income, as a percentage of twelve months average of total assets less the average of non interest bearing liabilities.%

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September 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.

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Volume development

Daily volume trend for: Q3 2007 Q4 2007

Net sales2006Europe 54%North America 20%Asia Pacific 18%Latin America 5%Total

Outlook Q42007 vs 2006++=++++++++

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Financial targets long term

Operating margin, level12%

Growth in local currencies, per annum 6-8% Return on capital employed24%

Gearing around 50%

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Guidance 2007Tax level: around 32-33%

Financial net Around minus SEK 130 million per quarter Exchange rates on operating profit versus 2006 Q4: 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 billionGuidance based on current assumptions and exchange rates

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New automotive businessFord 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

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New railway businessBombardier Transportation a special tapered roller bearing design to the Ile de France suburban trains Photo: Bombardier Transportation

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Cautionary statementCautionary statementThis 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."

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