The SKF Group

Year-end result 2003

Tom JohnstonePresident and CEO

Summary Q4, 2003

SKF Group

Good operational performance - Operating margin 10.3 % (ex restructuring and impairments)

- Strong cash flow - Inventories down- Good sales growth in local currencies- Positive price/mix development

Key activities- 2 factories opened in China- New business

Restructuring and impairment activities in line with guidance

- Restructuring MSEK 282, Impairments MSEK 205- Booked MSEK 421 as COGS, MSEK 66 as Selling Expenses- Main areas announced

.

2003* 2003 2002

Net sales 10 245 10 245 10 665

Operating profit 1 056 569 1 121

Operating margin 10.3 % 5.6 % 10.5 %

Profit before taxes 966 479 979

Net profit 405 719

Earning per share 3.56 6.34

Cash flow ** 812 559

SKF Group

* excluding restructuring and impairment in Q4 2003

**after investments before financing

Fourth quarter 2003

2003* 2003 2002

Net sales 41 377 41 377 42 430

Operating profit 3 786 3 299 4 022

Operating margin 9.2 % 8.0 % 9.5 %

Profit before taxes 3 280 2 793 3 542

Net profit 2 039 2 466

Earning per share 17.91 21.67

Cash flow ** 2 351 2 644

SKF Group

* excluding restructuring and impairment in Q4 2003

**after investments before financing

Full year 2003

-6

-4

-2

0

2

4

6

8

10

% change y-o-ySales in local currency

SKF Group

2001 2002 2003

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

0.4 1.0 1.4 1.9 2.0 1.4 0.7 0.1 0.2 0.3

- 3.2 - 3.8 - 7.3 -0.5 3.3 3.9 6.2 3.2 4.2 3.1

1.6 2.1 1.5 1.4 1.2 1.7 1.2 0.6 1.2 0.1

- 1.2 - 0.7 - 4.4 2.8 6.5 7.0 8.1 3.9 5.6 3.5

8.9 6.7 2.2 -3.7 -8.3 -10.8 -9.3 -8.6 -5.5 -7.4

7.7 6.0 - 2.2 -0.9 -1.8 -3.8 -1.2 -4.7 0.1 -3.9

Structure

Volume

Price / Mix

Sales in local currency

Currency

Net sales development per quarter

2002

Net sales

2001Percent

y-o-y 2003

SKF Group

0

1

2

3

4

5

6

7

8

9

10

11%

SKF Group

2001 2002 2003

Operating marginAdjusted*

* excluding restructuring and impairment in Q4 2003

-2

0

2

4

6

8

10

12

14

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Operating margin per divisionAdjusted*

Industrial

Service

Aero andSteel

Electrical

Automotive

%

SKF Group

2001 2002 2003* excluding restructuring and impairment in Q4 2003

18

19

20

21

22

23

24

25

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

%

Inventories as % of annual salesTarget 20%

SKF Group

2001 2002 2003

Net cash*

-2000

-1000

0

1000

2000

3000

4000

5000MSEK

SKF Group

* Short-term financial assets - Loans

2001 2002 2003

Dividend paid:2003 Q2, MSEK 9112002 Q2, MSEK 683 2001 Q2, MSEK 598

Dividend proposal:2004 Q2, MSEK 1 138

SKF Group

Net interest bearing liabilities, 2003(Short-term financial assets - loans - net postemployment benefits)

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

Q1 Q2 Q3 Q4

MSEK

0

2

4

6

8

10

12

1999 2000 2001 2002 2003*

Dividend development

SKF Group

SEK

* Board proposal for 2003 dividend

SKF B

Sweden SKF B, close daily

May Sep 00 May Sep 01 May Sep 02 May Sep 03 May Sep 0475

100

125

150

175

200

225

250

275

300

75

100

125

150

175

200

225

250

275

300

Volume trend

Europe 57%

22%

14%

4%

North America

Asia Pacific

Latin America

Externalsales 2003 Oct 2003 Jan 2004

SKF Group

Total

Volume trend

Automotive 32%

4%

32%

Electrical

Service

Externalsales 2003

23%Industrial

Aerospace 4%

Jan 2004Oct 2003

SKF Group

Outlook January 2004

The market demand for the Group's products and services is expected to improve during the first quarter 2004. In Europe it is expected to be slightly higher, while it will remain relatively flat in North America. Demand is expected to increase significantly in both Asia and Latin America.

Manufacturing will, as is normal during the first half of the year, be increased slightly ahead of market demand to ensure a good service level throughout the summer period.

SKF Group

SKF Group

Target

10 % operating margin level

10 BSEK additional annual net sales To be reached within the 2005/2006 time period

SKF GroupOperating margin - adjusted

0

2

4

6

8

10

12

2001 2002 2003

%

Sales growth in local currencies

SKF Group

0

2

4

6

2001 2002 2003

%

Examples of growth areas

2003 / 2002

SKF Group

China +35 %

Central and Eastern Europe +10 %

Examples of growth areas

2003 / 2002

SKF Group

Medical segment within

Linear Motion business 12%

Vehicle Service market 10%

SKF Railway segment 10 %

Areas in focus 2004

Operating margin level- maintain a positive price mix

- implement restructuring plan

Continued sales growth- maintain organic growth pace

- acquisitions

Cash flow in line with net profit

Launch Six Sigma throughout SKF Group

SKF Group

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".

Cautionary Statement

SKF Group