3 . Service Technologies and Industrial Solutions Presented by Christian Gill

1. Who we are • Our business • Service Technologies and Industrial Solutions • Marine Business Unit • Key Business Message 3. Service Technologies and Industrial SolutionsPresented by Christian Gill

2. SKF Service Technologies and Industrial Solutions Value proposition: We increase profitability throughout the asset lifecycle by developing and delivering innovative and industry leading products, services and customized solutions based on SKF technology and industrial knowledge. • Why our offer is unique: • A comprehensive portfolio of products and systems for production and maintenance • SKF Solution Factory network: global reach and a consistent delivery organization • 2200 dedicated people globally and with the capability to sell and deliver products, Services and Solutions to OEM and aftermarket customers in every major industry • Industry experts in all of SKF’s Focused and Strategic Industries • SKF’s Global Technology Center with R & D and testing capabilities • Access to a worldwide network of distributors, dealers and certified partners that provide products and services to end-user customers CMD 2014

3. Delivering steady growth with Service Technologies and Industrial Solutions business 1 Revenue • Sustainable double digit growth • Through organic and inorganic growth, SKF has become a market leader in the Services & Solutions business 2006 2007 2008 2009 2010 2011 2012 2013 CMD 2014

4. SKF Service Technologies and Industrial Solutions development Industrial mobile Internet solutions Automation & embedded wireless technologies Value to customer Value integration Energy efficiency Consulting • Today SKF’s services and solutions offering is designed to manage the entire asset life-cycle and includes our latest embedded, wireless and self-powering condition monitoring technology and mobile internet solutions. Smart diagnostics Diagnostics protection Condition monitoring 2007 2010 2012 1998 2013 1990 1987 2000 CMD 2014

5. Macro trends CMD 2014

6. Example: Today in Metals Perpendicularity, Level, Straightness, Flatness… Condition Monitoring Flatness Roll Alignment Inspections Cardan Alignment Bore Alignment Shaft Alignment CMD 2014

7. Example: Tomorrow in Metals Perpendicularity, Level, Straightness, Flatness… ConditionMonitoring Flatness Roll Alignment Inspections CardanAlignment Bore Alignment Shaft Alignment CMD 2014

8. Technology building blocks Mobile apps and instruments Wireless communication Embedded sensorization Integration and interfacing Cloud Computing Advanced analytics CMD 2014

9. Mobile app solutions Industry and cross-functional/-application knowledge Advanced analytical knowledge • Data Collection • Process Visualization • Sales and marketing • Documented Solutions Programme • … • Technology (e.g. Condition monitoring,Alignment, …) • Engineering & simulation apps • System interfacing • … CMD 2014

10. Acquisition to enforce SKF mobile internet solutions • SKF has recently acquired GLOi, a Swedish-based alignment technology solutions company • Development and launch of integrated shaft alignment solutions based on the iOS software platform • Core competence in Bluetooth communication and visualization • Active within the same markets for alignment products, including Marine, Steel, Mining, Pulp and Paper, and Hydrocarbon Processing as SKF. A common development of SKF and GLOi : SKF Shaft alignment tool CMD 2014

11. Wireless technology • Collecting data automatically:Personnel can focus on analysis rather than collection of data. • By providing measurements much more frequently, customers can gain more insight into machine behavior and better avoid unplanned downtime.

12. SKF Insight Information relating to actual operating condition is sent to Cloud servers for remote diagnostics Wireless communication from bearing to gateway • Smart Components are integrated into the bearing or housing. • Monitor lubrication, speed, temperature and vibration • Self powered Remote Diagnostic Services Applications Understand how the bearing’s service life is being consumed and the risks of failure CMD 2014

13. SKF Solution Factory: Engineering and delivery of technology building blocks 28 locations world-wide Creating value by leveraging SKF knowledge Country City Australia Perth Brazil Cajamar Canada Edmonton Canada Toronto Columbia Bogota China Shanghai China TianjinChina Urumqi France Montigny Germany SchweinfurtCountryCity India Pune India Manesar Italy Turin Mexico Monterrey Netherlands RidderkerkNetherlands Nieuwegein Poland Katowice Romania Bucharest Russia Moscow United Arab Emirats Abu Dhabi Country City South Africa Witfield Spain Madrid Sweden Gothenburg Taiwan Taichung Turkey Istanbul UK Luton USA Cleveland USA Houston CMD 2014

14. Acquisition to expand SKF Solution Factory portfolio • SKF has acquired Hofmann Engineering North America, a Canadian-based company • Hofmann Engineering • runs a high-precision machining operation with large dimension capabilities • offers large pinion and gear solutions, precision grinding, and custom engineering projects • is locally active within the same industries as SKF with a focus on heavy industries CMD 2014

15. SKF Life Cycle Management powered by Service Technologies and Industrial Solutions Remote Diagnostic Centre SKF Solution Factory Authorized Distributor and Certified Maintenance Partner Products Services Services end-user OEM CMD 2014

16. Asset Efficiency Optimization at Capital Markets Day Talk to our experts and use our interactive presentations to learn more about our offers. CMD 2014