Slides
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Alt 4 21 October 2026 Q3 2026 quarterly presentation
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Ask a question Legal disclaimer This presentation contains forward-looking statements that reflect SKF’s current expectations on future events and financial and operational development. Words such as “intend”, “anticipate”, “expect”, “may”, “plan”, “believe”, “estimate”, “project”, and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking statements. Forward-looki ng statements are inherently associated with risks and uncertainties, both known and unknown, and depend on future events and circumstances. No assurance can be given that such expectations will be fulfilled. Any statements about future strategy and business decisions are indicative only and remain subject to all necessary approvals. Results and actual outcomes could differ materially. SKF makes no undertaking to disclose, update or revise any forward- looking statement due to new information, future events or other such matters, other than what is required according to applicable legislation. Telephone Press *1 Webcast Use question tab above the slides SKF Third-quarter report 2026 2
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SKF Group Skf – Continuing operations SKF Vertevo – Discontinued operations “Fighting friction” “Moving people further” Two independent companies from Dec 1 SKF Third-quarter report 2026 3
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Organic growth and adjusted operating margin Improved margin and selectively higher demand • Solid organic growth driven by selectively higher OEM demand, especially in Americas and in Specialized Industrial Solutions (SIS) • Continued margin expansion, mainly driven by SIS • Rightsizing program progressing well – targeting to finalize ½ year earlier • SKF Vertevo planned to be listed on Dec 1 Q3 2026 | QUARTERLY SUMMARY 0% 6% 12% 18% -5% 0% 5% 10% Q1 25 Q2 Q3 Q4 Q1 26 Q2 Q3 Adj. operating margin Organic growth Organic growth Adj. operating margin, rolling 12 months 4 Organic growth, year-over year, % Adj. operating margin, % Operating cash flow, BSEK 4.3 16.3 2.1 SKF Third-quarter report 2026 All comments and figures refer to SKF Groups’ continuing operations unless otherwise stated. The Automotive segment is reported as discontinued operations.
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Organic growth by geographical region Q3 2026 | SALES BY REGION - CONTINUING OPERATIONS EMEA: Europe, Middle East and Africa; NEA: North-East Asia; SEA: South-East Asia; O rganic growth: year-over-year Region % of global net sales Net sales, BSEK Organic growth, % Market highlights EMEA 7.2 0.5% • Broadly unchanged demand environment • Solid commercial execution in SIS The Americas 5.1 9.9% • Continued improving demand in key OEM markets • Strong growth in SIS, particularly in Magnetics and Aerospace China & NEA 3.5 0.5% • Demand relatively unchanged • Solid growth in distribution, machine tools and commercial aviation India & SEA 1.8 11.9% • Higher demand across most industries 41% 29% 20% 10% 5SKF Third-quarter report 2026
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Bearing Solutions Q3 2026 | SEGMENT OVERVIEW - CONTINUING OPERATIONS 0% 5% 10% 15% 20% 25% 11,000 12,000 13,000 Q1 25 Q2 Q3 Q4 Q1 26 Q2 Q3 Net sales Adj. operating margin, rolling 12 months MSEK 6 Organic growth 2.8% • Improved demand in ISEA and Americas while Europe, Middle East and Africa and China and North-East Asia were relatively unchanged • Positive price/mix Adjusted operating margin 18.8% (18.7%) • Volumes and price/mix contributed positively • Support production related to the Automotive separation was non-material • Positive net from rightsizing savings vs negative synergies, while cost inflation and transformation initiatives weighted • Slight currency tailwind Net sales and adjusted operating margin Share of continued operations net sales 85% 74% Share of continued operations Adj. EBIT SKF Third-quarter report 2026
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Specialized Industrial Solutions Q3 2026 | SEGMENT OVERVIEW - CONTINUING OPERATIONS MSEK 7 0% 2% 4% 6% 8% 10% 12% 14% 16% 3,000 4,000 5,000 6,000 Q1 25 Q2 Q3 Q4 Q1 26 Q2 Q3 Net sales Adj. operating margin, rolling 12 months Net sales and adjusted operating margin 23% 26% SKF Third-quarter report 2026 Organic growth 8.3% • Solid growth across all four business units, particularly in Magnetics and Aerospace • Strong price/mix execution Adjusted operating margin 14.0% (11.6%) • Solid commercial execution • Stronger demand in selected markets resulted in higher production levels and to some extent higher cost from a different material mix • Inflationary cost effects • Slight currency tailwind Share of continued operations net sales Share of continued operations Adj. EBIT
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Discontinued operations (Automotive) Organic growth -4.0% • Weak demand environment • Positive momentum in commercial vehicles and vehicle aftermarket sales in Americas and China & North-East Asia Adjusted operating margin 4.6% (3.4%) • Solid price/mix reflecting a mix shift in OEM/vehicle aftermarket sales • Inflationary cost headwind • Currency tailwind Q3 2026 | DISCONTINUED OPERATIONS MSEK 8 0% 2% 4% 6% 8% 5,000 6,000 7,000 Q1 25 Q2 Q3 Q4 Q1 26 Q2 Q3 Net sales Adj. operating margin, rolling 12 months SKF Third-quarter report 2026 Net sales and adjusted operating margin
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Quarterly deep-dive 9SKF Third-quarter report 2026
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Main segments served Magnetic Solutions | Zero friction rotation with attractive TCO Magnetic Solutions ~1.5 BSEK Net sales 2025 Double digit growth Over the last 5 years Strong market position Value for customers Significantly enhanced energy efficiency • Lowering energy consumption by up to 30%, reducing both running cost and CO2 emissions Increased uptime and less maintenance • No mechanical contact reduces risk of failure and extends maintenance intervals Compact, clean and silent • Less vibration significantly reducing noise pollution in e.g. hospitals • Oil-free hermetic systems minimizes pollution in areas with high requirements on cleanliness Embedded sensors to control levitation • The sensitive sensors embedded in the active magnetic bearings can be utilized for system wide condition monitoring and to scale AI solutions Full-suite offering Magnetic Bearings High-Speed Electrical motors Electronic Control cabinets Variable Frequency drives (VFDs) Services, Condition Monitoring on Application performance optimization Data centers General heating & cooling Semiconductor Energy Aftermarket and Services SKF Third-quarter report 2026 10
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Expand and capture full value of digital offering Continued focus on capturing structural growthScale manufacturing capacity • Output optimization in existing manufacturing sites • Expanding production capacity and increasing automation in newly opened Tangier (Morocco) and SXC (China) manufacturing sites • Strengthening strategic suppliers to ensure resilience and cost efficiency • Using our unique complete-system offer to capture more aftermarket value through – Utilizing our bearings built in sensors to scale our digital offer, with AI-supported monitoring and digital twins – Focusing on complete asset performance optimization • Focus on retaining leading positions in attractive growth industries through targeted R&D in next generation solutions, mainly for: – Data centers & general HVAC – Semiconductors & Energy • Geographic expansion to meet growing Asian demand and exploration of new industries Magnetic Solutions | Ramping up capacity to meet the fast-growing demand whilst capturing the structural growth and building for the future SKF Third-quarter report 2026 11
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Milestones ahead of listing SKF Vertevo Prospectus Prospectus is published for SKF Vertevo’s application for admission to trading on Nasdaq Stockholm First day of trading Expected debut on Nasdaq Stockholm EGM Shareholder approval to distribute all shares of its Automotive business, SKF Vertevo, to the shareholders of SKF SKF Vertevo CMD Capital Markets Day in Stockholm and online Register at www.SKF.com/Investors 1 Oct 17 Nov 1 Dec Separation update November 12 SKF Third-quarter report 2026
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Financials Susanne Larsson, CFO
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14 Q3 2026 | FINANCIALS Continuing operations Q3 2025 Q3 2026 Change Net sales, MSEK 16,562 17,467 +5.5% Organic growth, % 3.7 4.3 Adjusted gross profit, MSEK 5,794 6,099 Adjusted gross margin, % 35.0% 34.9% -0.1 pp Adjusted operating profit, MSEK 2,553 2,845 Adjusted operating margin, % 15.4 16.3 +0.9 pp Items affecting comparability, MSEK -387 - 67 Operating profit, MSEK 2,166 2,778 Operating margin, % 13.1 15.9 +2.8 pp Net profit, MSEK 1,287 1,777 Adjusted EPS, SEK 3.5 3.9 SKF Group incl. discontinued operations Net profit, MSEK 1,127 1,428 Adjusted EPS, SEK 4.0 4.2 IAC breakdown (BSEK) Q3 2025 Q3 2026 Continuing operations -0.4 -0.1 Discontinued operations -0.4 -0.5 Total SKF Group -0.8 -0.6 SKF Third-quarter report 2026 P&L summary
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Bridge analysis – Continuing operations Q3 2026 | FINANCIALS Q3 2025 Organic 1) Cost Currency Structure Q3 2026 Net sales, MSEK 16,562 704 283 - 82 17,467 Growth, % 4.3 1.7 -0.5 5.5 Adjusted operating profit, MSEK 2,553 659 -452 98 -13 2,845 Adjusted operating margin, % 15.4 16.3 Accretion/dilution, p.p. 3.3 -2.7 0.3 0.0 1) Includes production volumes. • Organic: Solid price/mix and selectively higher OEM demand. Support production for Automotive was non-material • Cost development: • Rightsizing savings of MSEK ~350 offset separation related negative synergies, where the net effect was positive • Cost inflation driven by input costs, logistics and general wage inflation, as well as transformation initiatives • Continued to largely compensate for tariff costs through price adjustments • Positive earnings impact in SIS from stronger demand in selected markets resulted in higher production levels and to some extent higher cost from a different material mix • Currency: Currency tailwind, mainly driven by stronger CNY versus SEK • Structure: Net of divestment of the Aerospace business Elgin in USA and the acquisition of G-Tech Instruments 15Note: The numbers in the table are rounded. Comments relate to earnings impact 1,700 MSEK Rightsizing run- rate savings as of Q3 26 SKF Third-quarter report 2026
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Net cash flow from operating activities, MSEK Cash flow, leverage and return on capital -Continuing operations Q3 2026 | FINANCIALS 821 - 422 - 515 - 587 2 778 2 076 Operating profit Q3 2026 Non-cash items and other Taxes NWC Net cash flow from operating activities Q3 2026 16 Depreciation, amortization, & impairment SKF Third-quarter report 2026 1.1 15.3% Net debt / Adj. EBITDA Adjusted ROCE 1) 1) Based on period-end capital employed rather than a 12- month average balance sheet. Calculation is based on the average of available quarterly balance sheet positions from Q3 onwards.
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Outlook and guidance -Continuing operations (with the exception for IAC) Outlook • Q4 2026: We expect organic sales for Continuing operations to strengthen somewhat in Q4, year-over-year. This as we see a similar market environment as we had in Q3. However, market volatility remains high which amplifies overall uncertainty. Guidance Q4 2026 • Currency impact on the operating profit: positive around MSEK 150, year-over-year, based on exchange rates as per 30 Sep 2026 Guidance FY 2026 • Tax level excluding effects related to divested businesses and separation of the Automotive business: around 27% • Additions to property, plant and equipment: around BSEK 2.5. Compared to previous guidance, this corresponds to a decrease of around BSEK 0.5 as a result of optimization of SKF Group's continuing operations' planned investments. • For SKF Group incl. discontinued operations: Items affecting comparability related to the Automotive separation and footprint optimization: BSEK - 2.5 to -3. This is within the frame communicated at CMD 2025. Q3 2026 17SKF Third-quarter report 2026 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”.
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Magnetics - building to capture growth Well-positioned to leverage on megatrends. Scaling capacity to capture profitable growth SKF Vertevo’s listing Shareholder approval secured and listing preparations in full swing. On track to complete the separation by Dec 1 Solid momentum in rightsizing savings The program is now expected to reach the annual run-rate of BSEK ~2 already mid-2027 02 03 04 18 Improved margin and selectively higher demand Q3 2026 SKF Third-quarter report 2026 Continued strong growth and margin expansion in SIS 8.3% organic growth with solid growth across all four business units and a margin uptick of 2.4 p.p. year-over- year 01
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Q&A