Electrical and Two- wheelers business unit

Presented by Franco Ferro Director, business unit Electrical and Two-wheelers

SKF Capital Markets Day 2008 Electrical & two-wheelers global presence

ERC Fontenay Airasca St Cyr Sopot Cassino Pune Shanghai Bangalore Bangalore Factories Jakarta Technical Center Development Center Tortuguitas • 3,400 employees worldwide • 8 factories in 7 countries • Product development in Europe and Asia Electrical & two-wheelers main customers

Home appliance Power tools Electrical motors Two-wheelers Vehicle electric systems Main electrical & two-wheelers applications

Electrical & two-wheelers - all platforms Bulgaria outlook SKF Bulgaria factories

Deep groove ball bearings Karnare Forgings & rings Kalofer Sopot Seals SKF standard implementation - Sopot

SKF standards are being implemented to work with top class customers, like e.g.

20Ind06e =x: 100 2006 = 100 % 700 70%

600 60 >500 >50 500 50

400 Sopot 40 Sopot share 300 Sales to 30 Elctrolux of SKF 200 20 Sales to Electrolux 100 10

0 0 2006 2007 2008 2005 2006 2007 2008 Automatic seal process implementation - Kalofer

The factory is now the main supplier for small ball seals for West European factories

New business for industrial applications - trackstar seal for track chain New ring rolling process - Karnare

A new ring rolling process is implemented in 2008 for small ball bearing rings in order to save 12% of raw material Environmental management system

Certified to : SS-EN ISO 14001: 2004 Standard

Approved by DNV Cost reduction & profitable growth Global optimization

• Leveraging on Tortuguitas plant for American market • Restructuring of Fontenay plant • Full integration of Sopot into SKF brand • Strengthening of best cost country footprint Profitable growth through value added solutions

Top load washing machine drum unit

500 450 Index 2004 = 100 400 8 00 350 l 2 pri 300 o A p t 250 u its un 200 m ru 150 n d llio 100 mi 6 50 ed 0 iver Del 04 05 06 07 Growth in Asia

• Leading supplier in and Indonesia • Strong growth driven from two wheelers production

• Partnership and relationship with leading customers and rs yea global supply to Japanese two wheeler manufacturers 0 t 1 as (Asia, Europe, Latin America) e l th in • Introduction of value added products um nn r a pe h wt ro e g ag er av % 15 New product solutions

Steering column One way clutch (for two-wheelers) (for two-wheelers electric start motor) • Customer advantages: • Customer advantages: - Simplified assembly operations - Simplicity - No re-lubrication required, easily - Compactness replace existing system - Weight reduction - Better protection against contamination - Integrated ring gears - Long service life - Total cost reduction New product solutions

Energy efficient small bearings Autobalance (for electric motors) (for power tools) • Customer advantages: • Customer advantages: - Reduced vibrations - Reduced vibrations - Higher speed capability +15% - Operator safety and health - Reduced running temperature - Compactness - Improved performance - Improved performance - Higher service life Key business messages

• Partnership with leading customers • Increased value to customers (value added solutions) • Cost reduction • Focus on fast growing areas