SKF2009Q3Teleconference_Q309_xversion.ppt

October 30, 2007 The SKF Group SKF Investor Relations 1 November 2009 SKF - A truly global company Established: 1907 Sales 2008: SEK 63,361 million Employees: 44,799 Production sites: 110 in 28 countries SKF presence: in over 130 countries Distributors/dealers: 15,000 locations Global certificates: ISO 14001 OHSAS 18001 certification Net sales by customer segment SKF Group Vision Investing in new factories in Russia and India SKF Solution Factory competences SKF Solution Factories 2009 What is SKF knowledge? SKF’s platforms SKF’s platforms SKF’s platforms SKF’s platforms SKF’s platforms Acquisition 2003-2009Identifying gaps and opportunities in all platforms Investing in RD for staying in the forefront 30% increase in RD spending in 2008 Six Sigma 2009 Q2 status: 18 Master Black Belts 421 Black Belts 2,165 Green Belts 452 projects closed whereof 17 replicated 1,131 projects ongoing  Breakdown - COGS and SA (2008 SEK 55,618 m) The SKF Group Nine-month results 2009 Key points from Q3 report Strong cash flow Q3: SEK 1,359 m YTD September: SEK 4,307 m Dramatic volume drop year over year. Trend indicates levelling off. Q3: -24.9% YTD September: -27.6% Continued strong price/mix Q3: 3.7% YTD September: 5.5% Cost reduction efforts in focus and giving results - annualised savings from all programmes, around SEK 800 million - significant short-time working being utilized. Now 14,000 people. Demand outlook for Q4 - year over year: significantly lower - sequentially: slightly higher Highlights Q3 2009 SKF inaugurated its additional investment in the factory for large size bearings in Dalian, China, which doubles the manufacturing capacity. signed a Memorandum of Understanding with Sinovel Wind Co. Ltd for strategic partnership, and a series of contracts with a value exceeding SEK 330 m for main shaft bearings and sealing systems for 3MW wind turbines. signed a service contract with Transocean. The contract is worth SEK 10 m and