Year End 2009

SKF Year-end report 2009
Tom Johnstone, President and CEO:
“SKF delivered a strong cash flow in the quarter and a record cash flow for the year. Our
operating margin was 7.2% in the quarter, supported by the major cost reduction activities
in the operations. Demand for the Group improved slightly in the quarter but was still
significantly lower than a year ago. Additional steps were taken to further adapt our
manufacturing structure and costs towards a lower level of demand.
Going forward into 2010 we see a slightly higher demand in the first quarter both
sequentially and compared to the first quarter 2009. However, as the demand outlook is still
uncertain we will continue to adapt our cost structure while stepping up our activities in the
faster growing areas of our business and in developing new environmental offerings.”
Q4 Q4 YTD YTD
2009 2008 2009 2008
Net sales, SEKm 13,887 16,307 56,227 63,361
Operating profit, SEKm 1,004 1,450 3,203 7,710
Operating margin, % 7.2% 8.9% 5.7% 12.2%
Operating margin excl. restructuring, % 10.1% 11.0% 8.0% 12.7%
Profit before taxes, SEKm 765 1,107 2,297 6,868
Net profit, SEKm 505 819 1,705 4,741
Basic earnings per share, SEK 1.05 1.75 3.61 10.14

The decrease of 14.8% in net sales for the quarter, in SEK, was attributable to:
volume -14.1%, structure 0.4%, price/mix 0.3% and currency effects -1.4%.
For the full year, the decrease of 11.3%, in SEK, was attributable to:
volume -24.3%, structure 1.0%, price/mix 4.3% and currency effects 7.7%.

The quarter included expenses for restructuring activities of around SEK 400 million, of
which around SEK 350 million refer to programmes announced in the fourth quarter. For the
full year the expenses amount to around SEK 1,275 million, of which around SEK 135 million
are write downs and impairments.

The Board has decided to propose to the Annual General Meeting a dividend of SEK 3.50
(3.50) per share.

Outlook for the first quarter of 2010
Sales development compared to first quarter last year
The demand for SKF products and services is expected to be slightly higher for the Group in
total. In Europe and North America it is expected to be slightly lower and in Asia and Latin
America significantly higher. It is expected to be significantly lower for the Industrial Division,
slightly higher for the Service Division and significantly higher for the Automotive Division.
Sales development compared to the fourth quarter 2009
The demand is expected to be slightly higher for the SKF Group in total. It is expected to be
slightly higher in Europe, Asia and Latin America, and relatively unchanged in North
America. For the Industrial Division it is expected to be relatively unchanged, and slightly
higher for both the Service Division and Automotive Division.
Manufacturing level
The manufacturing level will be higher year on year and slightly higher compared to the
fourth quarter 2009.

Sales performance in the fourth quarter
Sales in local currencies were significantly lower for the Group, compared to last year. They
were significantly lower in Europe and North America, higher in Asia, significantly higher in
Latin America and lower in Middle East and Africa.

The manufacturing level was slightly higher than in the third quarter and significantly lower
than the same quarter last year.

Sales performance for the year
Sales in local currencies were significantly lower for the Group, compared to last year. They
were significantly lower in Europe and North America, lower in Asia, relatively unchanged in
Latin America and slightly higher in Middle East and Africa.

The manufacturing level was significantly lower than previous year and lower than sales to
reduce inventories.

Financial
31 December 30 September 31 December
Key figures 2009 2009 2008
Inventories, % of annual sales 20.9 20.6 24.0
ROCE for the 12-month period, % * 9.1 10.2 24.0
ROE for the 12-month period, % * 9.0 10.5 26.3
Equity/assets ratio, % * 35.8 33.5 35.1
Gearing, % * 49.3 52.9 50.1
Net debt/equity, % * 68.9 78.9 84.2
Registered number of employees 41,172 41,756 44,799
* 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”.

Cash flow, after investments and before financing, was SEK 1,445 million (-150) for the
fourth quarter and SEK 5,752 million (65) for the full year 2009. The cash flow includes
payments for acquisitions and non-controlling interests of SEK 2 million for the quarter and
SEK 241 million for the year.

Inventories versus Q3 2009, in local currencies, were reduced by around SEK 600 million.

The financial net in the fourth quarter of 2009 was SEK -239 million (-343). During the
quarter SKF reduced its long-term debt by the early repurchase of around SEK 2 billion of
outstanding bonds. Costs associated with this impacted the financial net by around SEK 50
million. The financial net for the full year was SEK -906 million (-842), which includes the
revaluation of share swaps amounting to SEK -5 million (-20).

Exchange rates, including the effects of translation and transaction flows, had a negative
effect of SEK 50 million SKF’s operating profit in the fourth quarter and positive effect of
around SEK 700 million for the full year. Based on current assumptions and exchange rates
it is estimated that there will be a negative effect on the first quarter 2010 of SEK 175
million and for the full year a negative effect of SEK 400 million.

R&D expenditure was SEK 1,217 million (1,175), corresponding to 2.2% (1.9) of annual
sales, excluding developing IT solutions. The number of first filings of patent applications
was 218 (179).

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Restructuring in 2009
During the year, SKF has undertaken restructuring and cost reduction activities to adapt the
overall capacity to market conditions. Total restructuring costs expensed in 2009 amount to
SEK 1,275 million of which SEK 135 million are write downs and impairments. Of the total
costs expensed SEK 915 million refer to the Automotive Division and SEK 310 million to the
Industrial Division. Following the dramatic fall in demand which started in the third quarter
2008 about 4,900 people have left the Group, of which about 3,800 people left in 2009. Total
savings from these activities will be around SEK 1,050 million, when fully implemented.

Around 13,000 people were in short-time working end of December 2009.

SKF's Performance Share Programme 2010
In order to continue to link the interests of the participants and the shareholders, the Board
proposes that a decision be taken at the Annual General Meeting in April 2010 on SKF’s
Performance Share Programme 2010. The terms and conditions of the proposed SKF’s
Performance Share Programme 2010 are in essence the same as the terms and conditions of
the programmes for 2008 and 2009.
It is proposed that the programme covers a maximum of 310 senior managers and key
employees in the SKF Group, including Group Management, with the opportunity of being
allotted, free of charge, SKF class B shares. The number of shares that may be allotted must
be related to the degree of achievement of financial targets defined by the Board of Directors
in accordance with the SKF Group’s TVA management model and must pertain to the period
commencing 2010 up to and including 2012. Under the programme, no more than 1,000,000
class B shares may be allotted.

Highlights from the fourth quarter

• SKF expanded its range of sealed spherical roller bearings, significantly increasing the
number of applications for which they can be used.

• An agreement was signed with Ricardo to develop energy efficient solutions to better serve
the increasing customer demand from the automotive industry for increased fuel economy
and reduced CO2.

• SKF was awarded a new five year condition based maintenance contract by Total E&P UK
for providing condition based maintenance services of rotating equipment on Total's North
Sea onshore and offshore assets.

• Two new SKF Solution Factories were opened – in Pune (India), and Taichung City
(Taiwan). All together SKF now has eight SKF Solution Factories around the world.

• SKF inaugurated its Global Testing Centre in Bengaluru (Bangalore), India. It will provide
testing, laboratory investigations and product development facilities, ensuring greater
focus on customer requirements, quality and speed of development for the region.

• SKF has signed a five year contract with Imperial College London’s Department of
Mechanical Engineering to set up the next SKF University Technology Centre on tribology.
It will focus on research in the area of modelling in simulation of tribological systems.

• SKF launched a number of new energy-efficient solutions for car applications.

• SKF was selected the winner of the 2009 Swedish Innovation Award for its work on the
new family of energy-efficient bearings.

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• SKF received top score for its environmental and human rights by Folksam Corporate
Responsibility. SKF was placed first for its environmental efforts and this year also received
the highest score when the index for environment and human rights are combined. The
index was introduced in 2006 and is a summary of how all companies listed on the
NASDAQ OMX Stockholm AB present their work within environmental issues and human
rights.

Industrial Division
The operating profit for the fourth quarter amounted to SEK 238 million (1,001), resulting in
an operating margin of 3.6% (11.2) on sales including intra-Group sales. The quarter included
expenses for restructuring activities of around SEK 210 million (80). The operating profit for
the full year amounted to SEK 1,551 million (4,043), resulting in an operating
margin of 5.5% (12.0) on sales including intra-Group sales. The year included expenses for
restructuring activities of around SEK 310 million (80). Sales including intra-Group sales for
the quarter were SEK 6,710 million (8,940), and for the full year SEK 28,368 million (33,730).

Net sales for the fourth quarter amounted to SEK 4,448 million (6,151) and for the full year
SEK 19,301 million (22,862). The decrease of 27.7% for the quarter was attributable to:
organic growth -26.4%, structure 0.0%, and currency effects -1.3%.
For the full year the decrease of 15.6% was attributable to:
organic growth -23.9%, structure 0.0%, and currency effects 8.3%.

Sales in local currency for the fourth quarter as well as for the full year were significantly lower
in Europe and North America. In Asia they were slightly higher in the fourth quarter and lower
for the full year. Sales to the aerospace industry and to the heavy industry such as pulp and
paper, mining and construction continued to decline. Sales to general industry and energy as
well as to the passenger railway industry stabilized.

Service Division
The operating profit for the fourth quarter amounted to SEK 739 million (1,045), resulting in
an operating margin of 14.3% (17.2). The quarter included expenses for restructuring
activities of around SEK 15 million (0). The operating profit for the full year amounted to SEK
2,610 million (3,326), resulting in an operating margin of 12.9% (14.9). The year included
expenses for restructuring activities of around SEK 40 million (0). Sales including intra-Group
sales for the quarter were SEK 5,158 million (6,092), and for the full year SEK 20,190 million
(22,318).

SEK 19,832 million (21,907). The decrease of 15.5% for the quarter was attributable to:
organic growth -13.4%, structure 0.0%, and currency effects -2.1%.

Sales in local currencies for the fourth quarter as well as for the full year were significantly
lower in Europe and North America. In Asia they were relatively unchanged in the fourth
quarter and significantly lower for the full year. Sales in Latin America were slightly higher in
the fourth quarter and slightly lower for the full year. In Middle East and Africa sales were
lower in the fourth quarter and slightly higher for the full year.

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Automotive Division
The operating result for the fourth quarter amounted to SEK 83 million (-544), resulting in an
operating margin of 1.7% (-11.6). The quarter included expenses for restructuring activities of
around SEK 170 million (250). The operating result for the full year amounted to SEK -809
million (546), resulting in an operating margin of -4.2% (2.5). The year included expenses for
restructuring activities of around SEK 915 million (250). Sales including intra-Group sales for
the quarter were SEK 4,921 million (4,699), and for the full year SEK 19,279 million (21,850).

SEK 16,051 million (17,886). The increase of 8.8% for the quarter was attributable to: organic
growth 8.9%, structure 0.3%, and currency effects -0.4%.

Sales in local currencies for to the car and light truck industries in Europe were higher for the
quarter and significantly lower for the full year. In North America sales were lower in the
quarter and significantly lower for the full year.
Sales to the heavy truck industries in Europe were significantly lower both for the quarter and
the full year. In North America sales were slightly lower in the quarter and significantly lower
for the full year.
Sales to the vehicle service market in Europe were significantly higher in the quarter and
slightly higher for the full year. In North America sales were lower both in the quarter and for
the full year. In Asia sales were significantly higher in the quarter and lower for the full year.
Sales to the electrical industry in Europe were significantly lower both for the quarter and the
full year. To the two-wheeler industry sales in Asia were significantly higher in the quarter and
higher for the full year.

Previous outlook statement
Outlook for the fourth quarter of 2009
Sales development compared to fourth quarter last year
The demand for SKF products and services is expected to be significantly lower for the Group
in total and in Europe and North America. In Asia it is expected to be unchanged and in Latin
America slightly higher. It is expected to be unchanged for the Automotive Division but
significantly lower for the Industrial Division and Service Division.
Sales development compared to the third quarter this year
The demand is expected to be slightly higher for the SKF Group in total. It is expected to be
relatively unchanged in Europe and North America and slightly higher in Asia and Latin
America. It is expected to be relatively unchanged for the Automotive Division and slightly
higher for both the Service Division and the Industrial Division.
Manufacturing level
The manufacturing level will be significantly lower year on year and slightly higher compared to
the third quarter.

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Highlights in the previous quarter

SKF:
− gained a contract for the supply of tapered roller bearings to Guangdong Fuwa
Engineering Manufacturing Co Ltd. The contract is valid for three years and is worth up
to USD 4.5 million per year.
− gained an order for axleboxes and drive system bearings to CSR Zhuzhou Electric
Locomotive Co., Ltd. ZELC. The order value is EUR 14 million.
− inaugurated a new SKF Solution Factory in Turin, Italy.
− signed a contract with Cambridge University Department of Materials Science and
Metallurgy to set up the SKF University Technology Centre on Steels on campus in
Cambridge.
− won an order to supply Guohua Energy Investment Co. Ltd, located in Beijing, China,
with SKF WindCon online condition monitoring systems and other related services.
− signed a long-term contract for the supply of bearings to one of the world’s largest
motorbikes manufacturers, Hero Honda of India.
− acquired the remaining 49% of the shares in Macrotech Polyseal Inc, now named SKF
Polyseal Inc., based in Salt Lake City, Utah, USA, following the earlier acquisition of 51%
in April 2006.
− made in cooperation with the Czech police authorities a raid and confiscated over 30 tons
of counterfeit SKF bearings.
− repurchased EUR 118 million of the EUR 250 million bond loan which was due 2010.
− inaugurated its additional investment in the Dalian factory, China.
− launched eleven new solutions, covering all five platforms, to help customers increase
equipment reliability, reduce maintenance costs and the environmental impact. A service
programme for certified pumps rebuilder was also launched.
− signed a Memorandum of Understanding for strategic partnership with Sinovel Wind Co.
Ltd., which will cover supply chain service system optimization, staff training and
development, engineering development and design as well as resources management.
− signed a service contract with Transocean that is worth SEK 10 million and covers asset
reliability services for 59 of Transocean's drilling rigs.
− was selected for the third time to be the sector leader for the IEQ Industrial Engineering
sector in the 2009 Dow Jones Sustainability Indexes (DJSI). SKF has been included in
the index since it started in 2000.
− was also included in the FTSE4Good Index Series for the ninth year in succession.

Risks and uncertainties in the business
SKF Group operates in many different industrial, automotive and geographical segments that
are at different stages of the economic cycle. A general economic downturn at global level, or
in one of the world’s leading economies, could reduce the demand for the Group’s products,
solutions and services for a period of time. In addition, terrorism and other hostilities, as well
as disturbances in worldwide financial markets, could have a negative effect on the demand for
the Group’s products and services.

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The SKF Group is subject to both transaction and translation of currency exposure. For
commercial flows the SKF Group is primarily exposed to the USD and to US dollar-related
currencies. As the major part of the profit is made outside Sweden, the Group is also exposed
to translational risks in all the major currencies. The Parent company performs services of a
common Group character. The financial position of the parent company is dependent on the
financial position and development of the subsidiaries. A general decline in the demand for the
products and services provided by the Group could mean lower dividend income for the Parent
company, as well as a need for writing down values of the shares in the subsidiaries.

Cautionary statement
This report 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; "Important
factors influencing the financial results", "Financial risks" and "Sensitivity analysis", and in this
full-year report under "Risks and uncertainties in the business."

Göteborg, 28 January 2010
Aktiebolaget SKF
(publ.)

Tom Johnstone
President and CEO

Presentation
On SKF’s website http://investors.skf.com/ (click on Presentations).

Teleconference
On 28 January at 14.00 (CET), 13.00 (UK), 8.00 (US Eastern Standard Time):
+46 (0)8 5052 0110 Swedish participants
+44 (0)20 7162 0077 European participants
+1 334 323 6201 US participants

Please note that the use of a loudspeaker when taking part in the teleconference has a
negative influence on the quality of the sound, which affects all participants.

It is also possible just to listen to the teleconference on http://investors.skf.com/

Enclosures:

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Financial statements
1. Consolidated income statements
2. Consolidated statements of comprehensive income and consolidated statements of changes in
shareholders’ equity
3. Consolidated balance sheets
4. Consolidated statements of cash flow
Other financial statements
5. Consolidated financial information - yearly and quarterly comparisons
6. Segment information - yearly and quarterly comparisons
7. Parent company income statements, balance sheets and footnotes.

The consolidated financial statements of the SKF Group are prepared in accordance with International
Financial Reporting Standards as adopted by EU. The SKF Group applies the same accounting policies and
methods of computation in the interim financial statements as compared with the Annual Report 2008
including Sustainability Report, except as described in the first-quarter report 2009 and half-year report
2009.

The consolidated quarterly report has been prepared in accordance with IAS34. The report for the parent
company has been prepared in accordance with the Annual Accounts Act and RFR 2.2. The report has not
been reviewed by the company’s auditors.

The SKF First-quarter report 2010 will be published on Tuesday, 20 April 2010.
The Annual General Meeting will be held on Thursday, 29 April 2010 in Göteborg, Sweden.

The SKF Annual Report including Sustainability Report for 2009 will be published in a pdf-format on SKF’s
website http://investors.skf.com on 12 March 2010. The printed report will be delivered on 24 March
2010 and will be available at the company on that day.

Further information can be obtained from:
Ingalill Östman, Group Communication
tel: +46-31-3373260, mobile: +46-706-973260, e-mail: ingalill.ostman@skf.com
Marita Björk, Investor Relations
tel: +46-31-3371994, mobile: +46-705-181994, e-mail: marita.bjork@skf.com

Aktiebolaget SKF, SE-415 50 Göteborg, Sweden, Company reg.no. 556007-3495,
Tel: +46-31-3371000, fax: +46-31-3372832, www.skf.com

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Enclosure 1

CONSOLIDATED INCOME STATEMENTS (SEKm)

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
2009 2008 2009 2008

Net sales 13,887 16,307 56,227 63,361
Cost of goods sold -11,049 -12,269 -45,024 -47,075
Gross profit 2,838 4,038 11,203 16,286

Selling and administrative expenses -1,838 -2,523 -7,915 -8,543
Other operating income/expenses - net 2 -65 -74 -34
Profit/loss from jointly controlled and
associated companies 2 - -11 1
Operating profit 1,004 1,450 3,203 7,710

Operating margin, % 7.2 8.9 5.7 12.2

Financial income and expense - net -239 -343 -906 -842
Profit before taxes 765 1,107 2,297 6,868

Taxes -260 -288 -592 -2,127
Net profit 505 819 1,705 4,741

Net profit attributable to
Shareholders of the parent 476 797 1,642 4,616
Non-controlling interests 29 22 63 125

Basic earnings per share, SEK* 1.05 1.75 3.61 10.14

Diluted earnings per share, SEK* 1.05 1.75 3.61 10.13

Additions to property, plant and equipment 505 713 1,975 2,531

Number of employees registered 41,172 44,799 41,172 44,799

Return on capital employed for the
12-month period ended 31 December, %** 9.1 24.0 9.1 24.0

* Basic and diluted earnings per share are based on net profit attributable to shareholders of the parent.
** 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”.

NUMBER OF SHARES

Total number of shares 455,351,068 455,351,068 455,351,06 455,351,068
8
- whereof A shares 45,421,004 47,746,034 45,421,004 47,746,034
- whereof B shares 409,930,064 407,605,034 409,930,06 407,605,034
4

Total number of diluted shares outstanding 455,351,068 455,587,124 455,351,06 455,587,124
8

Total weighted average number of diluted
shares 455,351,068 455,606,052 455,365,53 455,822,720
6

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Enclosure 2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (SEKm)

2009 2008 2009 2008

Net profit 505 819 1,705 4,741

Other comprehensive income
Exchange differences arising on translation of
foreign operations 456 1,685 -798 2,072

Available-for-sale assets 79 -14 134 -239

Cash flow hedges -41 -109 182 -153

Actuarial gains and losses -75 -585 -888 -2,259

Income tax relating to components of other
comprehensive income 8 470 105 1,088
Other comprehensive income, net of tax 427 1,447 -1,265 509

Total comprehensive income 932 2,266 440 5,250

Total comprehensive income attributable to
Shareholders of AB SKF 869 2,151 412 5,050
Non-controlling interests 63 115 28 200

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (SEKm)

December December 2008
2009
Opening balance 1 January 19,689 18,355
Change in accounting principles - 654
Total comprehensive income 440 5,250
Exercise of options and cost for share programmes, net -12 -6
Other, including transactions with non-controlling interests -208 51
Redemption of shares - -2,277
Total cash dividends -1,629 -2,338
Closing balance 18,280 19,689

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Enclosure 3
CONSOLIDATED BALANCE SHEETS* (SEKm)
December 2009 December 2008

Goodwill 2,759 3,119

Other intangible assets 1,255 1,535

Property, plant and equipment 13,933 14,556

Deferred tax assets 1,665 1,342

Other non-current assets 1,502 1,366
Non-current assets 21,114 21,918

Inventories 11,771 15,204

Trade receivables 8,800 11,041

Other current assets 3,590 3,310

Other current financial assets 5,740 4,627
Current assets 29,901 34,182

TOTAL ASSETS 51,015 56,100

Equity attributable to shareholders of AB SKF ← 17,411 ← 18,750
← ←
Equity attributable to non-controlling interests ← 869 ← 939

Long-term financial liabilities 8,987 12,809

Provisions for post-employment benefits 7,020 6,356

Provisions for deferred taxes 754 1,210

Other long-term liabilities and provisions 1,599 1,738
Non-current liabilities 18,360 22,113

Trade payables 3,989 4,841

Short-term financial liabilities 2,018 899

Other short-term liabilities and provisions 8,368 8,558
Current liabilities 14,375 14,298

TOTAL EQUITY AND LIABILITIES 51,015 56,100

* 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”.

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Enclosure 4
CONSOLIDATED STATEMENTS OF CASH FLOW* (SEKm)

2009 2008 2009 2008
Operating activities:
Operating profit 1,004 1,450 3,203 7,710
Depreciation, amortization and impairment 503 621 2,171 1,949
Net loss/gain (-) on sales of intangible assets, PPE,
equity securities, businesses and assets held for sale 15 7 29 -49
Taxes -227 -737 -1,068 -2,783
Other including financial and non-cash items 206 -647 590 -895
Changes in working capital 467 38 3,076 -2,245
Net cash flow from operations 1,968 732 8,001 3,687

Investing activities:
Investments in intangible assets, PPE, businesses and
equity securities -532 -897 -2,271 -3,855
Sales of intangible assets, PPE, businesses, assets held
for sale, equity securities and pre-liquidation proceeds 9 15 22 233
Net cash flow used in investing activities -523 -882 -2,249 -3,622
Net cash flow after investments before financing 1,445 -150 5,752 65

Financing activities:
Change in short- and long-term loans -2,078 81 -2,048 3,686
Payment of finance lease liabilities - 79 -6 94
Redemption - - - -2,277
Cash dividends -1 -11 -1,629 -2,338
Investments in short-term financial assets -169 -102 -2,831 -384
Sales of short-term financial assets 1,441 182 2,461 869
Net cash flow used in financing activities -807 229 -4,053 -350
NET CASH FLOW 638 79 1,699 -285

Change in cash and cash equivalents:
Cash and cash equivalents at 1 October/1 January 3,761 2,657 2,793 2,946
Cash effect excl. acquired businesses 638 -11 1,699 -375
Cash effect of acquired businesses 0 90 0 90
Exchange rate effect 31 57 -62 132
Cash and cash equivalents at 31 December 4,430 2,793 4,430 2,793

Change in net interest- Opening Translati Cash Businesse Other Closing
bearing liabilities balance on effect chang s non cash balanc
1 Jan 2009 e acquired/ changes e
sold 31 Dec
2009
Loans, long- and short-term 13,447 -675 -2,048 - 26 10,750
Post-employment benefits, net 6,323 -322 -528 - 1,520 6,993
Financial assets, others -1,168 35 -370 - -9 -1,512
Cash and cash equivalents -2,793 62 -1,699 - 0 -4,430
Net interest-bearing
liabilities 15,809 -900 -4,645 - 1,537 11,801

* Certain reclassifications have been made to the statements of cash flow. The starting point is now operating profit rather
than profit before tax. In addition, investments in and sales of short-term financial assets, being part of the Group overall
financing program, are classified as financing rather than investing activities. These reclassifications have had no effect on
net cash flow. 2008 has been restated accordingly.

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Enclosure 5

CONSOLIDATED FINANCIAL INFORMATION - YEARLY AND QUARTERLY COMPARISONS
(SEKm unless otherwise stated)

Full Full
year year
1/08 2/08 3/08 4/08 2008 1/09 2/09 3/09 4/09 2009

15,59 16,07 15,38 16,30 63,36 14,84 14,16 13,32
Net sales 6 7 1 7 1 9 7 4 13,887 56,227
-11,5 -11,8 -11,4 -12,2 -47,0 -11,8 -11,6 -10,4
Cost of goods sold 26 60 20 69 75 44 56 75 -11,049 -45,024
16,28
Gross profit 4,070 4,217 3,961 4,038 6 3,005 2,511 2,849 2,838 11,203

Gross margin, % 26.1 26.2 25.8 24.8 25.7 20.2 17.7 21.4 20.4 19.9

Selling and administrative -1,98 -2,12 -1,91 -2,52 -8,54 -2,21 -2,00 -1,85
expenses 3 3 4 3 3 9 7 1 -1,838 -7,915
Other operating income/
expenses - net -44 38 37 -65 -34 -14 -25 -37 2 -74
Profit/loss from jointly
controlled and associated
companies -3 3 1 - 1 -4 -5 -4 2 -11
Operating profit 2,040 2,135 2,085 1,450 7,710 768 474 957 1,004 3,203

Operating margin, % 13.1 13.3 13.6 8.9 12.2 5.2 3.4 7.2 7.2 5.7

Financial income and
expense - net -116 -157 -226 -343 -842 -237 -162 -268 -239 -906
Profit before taxes 1,924 1,978 1,859 1,107 6,868 531 312 689 765 2,297

Profit margin before taxes,% 12.3 12.3 12.1 6.8 10.8 3.6 2.2 5.2 5.5 4.1

-2,12
Taxes -628 -609 -602 -288 7 -137 11 -206 -260 -592
Net profit 1,296 1,369 1,257 819 4,741 394 323 483 505 1,705

Net profit attributable to
Shareholders of the parent 1,261 1,341 1,217 797 4,616 390 314 462 476 1,642
Non-controlling interests 35 28 40 22 125 4 9 21 29 63

Basic earnings per share, SEK* 2.77 2.95 2.67 1.75 10.14 0.86 0.69 1.01 1.05 3.61

Diluted earnings per share, SEK* 2.77 2.94 2.67 1.75 10.13 0.86 0.69 1.01 1.05 3.61

Dividend per share, SEK - 5.00 - - 5.00 - 3.50 - - 3.50

Return on capital employed
for the 12-month period, %*** 26.2 26.6 26.6 24.0 24.0 18.7 13.4 10.2 9.1 9.1

Gearing, %** *** 38.2 49.0 49.2 50.1 50.1 50.1 51.1 52.9 49.3 49.3

Equity/assets ratio, %*** 39.8 32.3 33.7 35.1 35.1 35.9 34.6 33.5 35.8 35.8

Net worth per share, SEK* *** 40 33 36 41 41 43 40 36 38 38

Additions to property, plant
and equipment 538 584 696 713 2,531 494 442 534 505 1,975

42,94 43,15 45,03 44,79 44,79 43,65 42,42 41,75
Registered number of employees 4 8 5 9 9 3 2 6 41,172 41,172

* Basic and diluted earnings per share and Net worth per share are based on net profit attributable to shareholders
of the parent.

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** Current- plus non-current loans plus provisions for post-employment benefits, net, as a percentage of the sum of
current- plus non-current loans, provisions for post-employment benefits, net, and shareholders equity, all at end of
interim period/year end.

*** 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”.

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Enclosure 6

SEGMENT INFORMATION - YEARLY AND QUARTERLY COMPARISONS
(SEKm unless otherwise stated)

Full Full
year year
1/08 2/08 3/08 4/08 2008 1/09 2/09 3/09 4/09 2009
Industrial Division
22,86 19,30
Net sales 5,535 5,676 5,500 6,151 2 5,752 4,786 4,315 4,448 1
33,73 28,36
Sales incl. intra-Group sales 8,256 8,420 8,114 8,940 0 8,138 7,071 6,449 6,710 8
Operating profit 1,026 995 1,021 1,001 4,043 623 351 339 238 1,551
11.8 12.6 11.2 12.0
Operating margin* 12.4% % % % % 7.7% 5.0% 5.3% 3.6% 5.5%
Operating margin excl. 11.8 12.6 12.1 12.2
restructuring* 12.4% % % % % 7.9% 5.6% 5.8% 6.7% 6.6%
14,80 15,95 18,09 18,09 18,72 17,41 15,93 15,82 15,82
Assets and liabilities, net 14,351 9 9 8 8 5 6 4 5 5
Registered number of 18,89 19,19 19,16 19,16 18,76 18,38 17,84 17,60 17,60
employees 18,765 0 5 6 6 6 0 4 4 4

Service Division
21,90 19,83
Net sales 5,099 5,417 5,393 5,998 7 5,060 5,002 4,701 5,069 2
22,31 20,19
Operating profit 685 773 823 1,045 3,326 601 641 629 739 2,610
14.0 15.0 17.2 14.9 11.6 12.6 13.2 14.3 12.9
Operating margin* 13.1% % % % % % % % % %
Operating margin excl. 14.0 15.0 17.2 14.9 11.6 12.8 13.4 14.6 13.1
restructuring* 13.1% % % % % % % % % %
Assets and liabilities, net 5,149 5,435 5,521 5,668 5,668 5,471 5,335 4,734 4,834 4,834
Registered number of
employees 5,655 5,817 5,906 6,018 6,018 5,941 5,824 5,762 5,726 5,726

Automotive Division
17,88 16,05
Net sales 4,864 4,872 4,371 3,779 6 3,747 4,126 4,068 4,110 1
21,85 19,27
Operating profit 381 403 306 -544 546 -441 -471 20 83 -809
-11.6
Operating margin* 6.5% 6.8% 5.7% % 2.5% -9.6% -9.6% 0.4% 1.7% -4.2%
Operating margin excl.
restructuring* 6.5% 6.8% 5.7% -6.3% 3.6% -6.2% -0.7% 3.5% 5.2% 0.6%
10,07 10,07 10,42
Assets and liabilities, net 8,791 9,060 9,911 0 0 6 9,195 8,229 8,122 8,122
Registered number of 15,73 15,71 15,25 15,25 14,61 14,02 14,04 13,74 13,74
employees 15,828 7 3 6 6 2 4 7 6 6

Previously published amounts have been restated to conform to the current Group structure in 2009. The structural
changes include business units being moved between the divisions and between other operations and divisions.

* Operating margin is calculated on sales including intra-Group sales.

Reconciliation to profit before tax for the Group
Jan-Dec 2009 Jan-Dec 2008
Operating profit:
Industrial Division 1,551 4,043
Service Division 2,610 3,326
Automotive Division -809 546
Other operations outside the divisions 158 104

Unallocated Group activities and adjustments, net -307 -309

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Financial net -906 -842

Profit before tax for the Group 2,297* 6,868

* including around SEK 1,275 million in restructuring activities.

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Enclosure 7
PARENT COMPANY INCOME STATEMENTS (SEKm)
Note Oct-Dec Oct-Dec Jan-Dec Jan-Dec
2009 2008 2009 2008

Net sales 447 574 1,623 1,774
Cost of services provided -447 -574 -1,623 -1,774
Gross profit 0 0 0 0

Administrative expenses -18 -156 -101 -282
Other operating income/expenses – net 1 7 0 3
Operating loss -17 -149 -101 -279

Financial income and expenses - net 1 -68 37 2,602 3,934
Profit before taxes -85 -112 2,501 3,655

Provisions to untaxed reserves -145 25 -145 25
Taxes 53 25 99 105
Net profit -177 -62 2,455 3,785

PARENT COMPANY BALANCE SHEETS (SEKm)
N December 2009 December 2008
o
t
e

Investments in subsidiaries 17,211 14,768
Receivables from subsidiaries 8,615 12,433
Other non-current assets 500 397
Non-current assets 26,326 27,598

Receivables from subsidiaries 3,472 1,378
Other receivables 240 285
Current assets 3,712 1,663

TOTAL ASSETS 30,038 29,261

Shareholders’ equity 2 10,208 8,258

Untaxed reserves 1,240 1,095

Provisions 151 170

Non-current liabilities 8,614 12,431

Current liabilities 9,825 7,307
TOTAL SHAREHOLDERS’ EQUITY,
PROVISIONS AND LIABILITIES 30,038 29,261
Assets pledged 0 0
Contingent liabilities 5 4

Note 1. Financial income and expenses - net
The net change in financial income and expenses 2009 is primarily attributable to less dividends from
investments in subsidiaries.

Note 2. Shareholders’ equity (SEKm) December 2009 December 2008

Opening balance 1 January 8,258 8,915
Dividends -1,594 -2,277
Redemption of shares - -2,277
Net profit 2,455 3,785
Group contribution, net 966 357

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Other changes 123 -245
Closing balance 10,208 8,258

Year End 2009

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Year End 2009