SKF Q 3 2020 Results Alrik Danielson President

SKF Q 3 2020 Results Alrik Danielson President and CEO

Q 3 – Strategy implementation drives strong results • SKF’s transformation into a more customer-focused, innovative and lean business continues • Net sales of 18, 596 M, organic sales -5. 1% • Operating profit* improved to 2, 475 M (2, 380) and operating margin was 13. 3% (11. 3%). -5. 1% Organic sales growth 2, 475 M Operating profit* • Cash flow improved to 2, 266 M (2, 120) * Adjusted 2, 266 M Cash flow

Industrial: very good performance on lower sales • 15. 8% operating margin* (13. 9), despite 6. 9% drop in organic sales • Higher volumes in Asia and in Latin America, significantly lower volumes in Europe and North America * Adjusted

Strengthening competitiveness in North America • SEK 350 M investment for expanding and automating manufacturing in Sumter, South Carolina. • SEK 200 million investment in localizing manufacturing of Tapered Roller Bearings from China to Mexico. • Consolidation of the factories in Avon, Ohio and North Charleston, South Carolina into the Sumter factory.

Automotive: 7. 4% operating margin* • High pace in transformation • Operating margin* 7. 4% (4. 6), organic sales -0. 7% • Significantly higher sales in Asia, higher sales in Latin America. Lower sales in North America and significantly lower sales in Europe • Continued growth in Electrical vehicles * Adjusted

SKF Recond. Oil – enables a change in how we use oil DON’T CHANGE – RE-USE Oil is an asset, not a consumable OIL AS A SERVICE …per month, litre or based on performance. AND GAIN • Reduced oil related costs • Reduced CO 2 • Equipment performance with super clean oil

Q 3 Results: The details Niclas Rosenlew, CFO

Sales development Sequential improvement in organic sales 2019 2020 Q 3 Q 4 Q 1 Q 2 Q 3 Organic -3. 0 -2. 9 -8. 6 -25. 2 -5. 1 Structure -2. 6 -1. 8 +0. 1 - - Currency +4. 2 +4. 8 +3. 0 -1. 0 -6. 5 Net sales -1. 4 +0. 1 -5. 5 -26. 2 -11. 6 Percent y-o-y

Strong operating profit despite lower sales

Operating profit* Improved profit despite lower sales and currency headwind – continued performance on structural cost savings

Significantly improved performance for both Industrial and Automotive Industrial • Net sales 13, 150 M • Organic sales -6. 9% • Operating margin* 15. 8%, (13. 9) Automotive • Net sales 5, 446 M • Organic sales -0. 7% • Operating margin* 7. 4%, (4. 6)

Net working capital

Strong cash flow – lower reported operating profit offset by improved working capital SEKm

Net debt/equity ratio Strong balance sheet and solid liquidity positions us for the future Net debt, SEK bn Net debt/equity, %

Q 3 – Strategy implementation drives continued strong operating performance SKF’s transformation into a more customer-focused, innovative and lean business continues Improved profit and margins, strong cash flow: • Improved profit despite lower sales and currency headwind • Continued performance on structural cost savings • Operating margin increased to 13. 3% (11. 3%) Accelerating our efforts to regionalize, consolidate and modernize our manufacturing footprint • Record levels of investments in our factories and in new technology • Q 3: Investing in strengthened competitiveness in North America Next – Capital Markets Day on 4 November – Welcome!

SKF Q 3 2020 Results Q & A

July 2020: SKF demand outlook The industries and regions in which SKF operates are being impacted by initiatives by authorities and by SKF's customers related to the spread of the Covid-19 virus. As a result of this uncertainty, it is not feasible to provide a reliable demand guidance for the fourth quarter.

Guidance for 2020* Q 4 2020: • Financial net: around -200 million 2020: • Tax level: around 29% for 2020, excluding effects from divestments. • Additions to property, plant and equipment: around 3, 300 million for 2020. * Guidance is approximate and based on current assumptions and exchange rates.

Cautionary statement This presentation 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 Administration Report; “Risk management at SKF" and "Sensitivity analysis”.