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SKF First-quarter report 2009
Tom Johnstone, President and CEO:
“We saw a very significant drop in our sales volumes in the first quarter and reduced our
manufacturing level even more. The actions which we have put in place to focus on profit and
cash flow are having the right effect. Looking at the second quarter we expect to see a similar
level of decline in volume year on year as we saw in the first quarter. However, we can see
that the speed of decline sequentially is reducing which indicates that demand may be leveling
outquot;.

                                                                 Q1              Q1
                                                              2009            2008
Net sales, SEKm                                              14,849          15,596
Operating profit, SEKm                                          768           2,040
Operating margin, %                                             5.2            13.1
Profit before taxes, SEKm                                       531           1,924
Net profit, SEKm                                                394           1,296
Basic earnings per share, SEK                                  0.86            2.77

The decrease of 4.8% in net sales for the quarter, in SEK, was attributable to:
volume -26.9%, structure 1.4%, price/mix 7.1% and currency effects 13.6%.

The quarter included expenses for restructuring activities and other one-time items of around
SEK 175 million (0), of which around SEK 65 million are write downs and impairments.
Approximately SEK 100 million of these expenses were announced already in December 2008
to be taken in 2009.

Outlook for the second quarter of 2009
The demand for SKF products and services is expected to be significantly lower in the second
quarter compared to the second quarter last year for the Group in total, for all the Divisions
and for all regions.

Compared to the first quarter, demand is expected to be slightly lower for the SKF Group in
total and lower in Europe, slightly lower in North America and relatively unchanged in Asia and
Latin America. Demand is expected to be relatively unchanged for the Automotive Division and
slightly lower for both the Industrial and Service Division.

The manufacturing level will be significantly lower year on year and relatively unchanged
compared to the first quarter.
Page 2 of 13




First quarter development
The trend of weakening demand increased during the quarter and sales in local currencies
were significantly lower for the Group in total, for all of the Divisions and in all regions of the
world. While this dramatically lower business is affecting nearly all parts of the SKF Group,
sales to certain segments such as energy, aerospace and passenger railways showed positive
growth.

SKF gained a number of new businesses during the quarter, for example 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. Fuwa supplies
trailer axles to both Chinese and international manufacturers. SKF also gained an order for
axleboxes and drive system bearings to CSR Zhuzhou Electric Locomotive Co., Ltd. ZELC. The
order value is EUR 14 million.

SKF started programmes in the second half of last year to adapt both the manufacturing level
and the cost level to the new market situation. Cumulatively, by the end of the first quarter
around 2,600 people had left the Group and an additional 1,700 will leave as a result of the
programmes combined with other actions. Flexibility and increased time banks are being used
throughout the Group and around 6,000 people are now on short-time working mainly in
Germany and Italy.

Manufacturing output is being continuously adjusted. In the first quarter it was 34% lower
compared to the same quarter last year. Manufacturing will continue to be kept lower than
sales to reflect demand and to further reduce inventory.

Financial

Key figures                                                     Q1              Q4             Q1
                                                             2009            2008           2008
Inventories, % of annual sales                                24.2            24.0           19.4
ROCE for the 12-month period, % *                             18.7            24.0           26.2
ROE for the 12-month period, % *                              20.8            26,3           26.5
Equity/assets ratio, % *                                      35.9            35.1           39.8
Gearing, % *                                                  50.1            50.1           38.2
Net debt/equity, % *                                          77.2            84.2           47.8
Registered number of employees on 31 March                  43,653          44,799         42,944
* 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”, see enclosure 8.


Cash flow, after investments and before financing, was SEK 523 million (-131) for the first
quarter.

Inventories versus Q4 2008, in local currencies, were reduced by around SEK 500 million.

The financial net in the first quarter of 2009 was SEK -237 million (-116), including
revaluation of share swaps of SEK -5 million (14).

Exchange rates for the first quarter of 2009, including the effects of translation and
transaction flows, had a positive effect on SKF’s operating profit of around SEK 225 million.
Based on current assumptions and exchange rates, it is estimated that the positive effect for
the second quarter of 2009 will be SEK 300 million and for the full year will be SEK 1 billion.
Page 3 of 13




Industrial Division
The operating profit for the first quarter amounted to SEK 623 million (1,026), resulting in an
operating margin of 7.7% (12.4) on sales including intra-Group sales. The quarter included
expenses for restructuring activities of around SEK 20 million (0). Sales including intra-Group
sales for the quarter were SEK 8,138 million (8,256).

Net sales for the first quarter amounted to SEK 5,752 million (5,535). The increase of 3.9%
for the quarter was attributable to:
organic growth -12.3%, structure 0.1%, and currency effects 16.1%.

Sales in local currency for the first quarter were significantly lower in all regions.

Service Division
The operating profit for the first quarter amounted to SEK 601 million (685), resulting in an
operating margin of 11.6% (13.1). Sales including intra-Group sales for the quarter were SEK
5,167 million (5,210).

Net sales for the first quarter amounted to SEK 5,060 million (5,099). The decrease of 0.8%
for the quarter was attributable to:
organic growth -13.2%, structure 0%, and currency effects 12.4%.

Sales in local currencies for the first quarter were significantly lower in all regions.

Automotive Division
The operating loss for the first quarter amounted to SEK -441 million (381), resulting in an
operating margin of -9.6% (6.5). The quarter included expenses for restructuring activities
and other one-time items of around SEK 155 million (0). Sales including intra-Group sales for
the quarter were SEK 4,601 million (5,889).

Net sales for the first quarter amounted to SEK 3,747 million (4,864). The decrease of 23%
for the quarter was attributable to:
organic growth -34.1%, structure 0.4%, and currency effects 10.7%.

Sales in local currencies for the first quarter were significantly lower to the car and light truck,
the heavy truck, the vehicle service market and the electrical industries in all the regions of
the world. However, sales to the two wheeler industry in Asia were relatively unchanged.



Previous outlook statement
Outlook for the first quarter of 2009
(compared to the fourth quarter of 2008 and the first quarter last year)
The demand for SKF products and services is expected to be significantly lower for the Group
in total and for all regions. It is also expected to be significantly lower for the Automotive and
Service Divisions and lower for the Industrial Division.

The manufacturing level will be significantly lower to reflect both the new demand situation
and to reduce inventory.
Page 4 of 13




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.

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;
quot;Most important factors influencing the financial resultsquot;, quot;Financial risksquot; and quot;Sensitivity
analysisquot;, and in this quarterly report under quot;Risks and uncertainties in the business.quot;

Göteborg, 21 April 2009
Aktiebolaget SKF
(publ.)

Tom Johnstone
President and CEO




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

Teleconference
On 21 April at 13.00 (CET), 12.00 (UK), 7.00 (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/
Page 5 of 13




 AB SKF may be required to disclose the information provided herein
 according to the Securities Markets Act and/or the Financial Instruments
 Trading Act. The information was submitted for publication at 12.00 (CET)
 on 21 April 2009.




Enclosures:
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.
8. Changes in accounting principles

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 Changes in accounting principles (enclosure 8).

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 Half-year report 2009 will be published on Wednesday, 15 July 2009.




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
Page 6 of 13



                                                                                                             Enclosure 1

CONSOLIDATED INCOME STATEMENTS (SEKm)

                                                                               Jan-Mar 2009                  Jan-Mar 2008

Net sales                                                                              14,849                      15,596
Cost of goods sold                                                                    -11,844                     -11,526
Gross profit                                                                            3,005                       4,070

Selling and administrative expenses                                                     -2,219                     -1,983
Other operating income/expenses - net                                                      -14                        -44
Profit/loss from jointly controlled and
associated companies                                                                         -4                       -3
Operating profit                                                                            768                    2,040

Operating margin, %                                                                         5.2                      13.1

Financial income and expense - net                                                        -237                      -116
Profit before taxes                                                                        531                     1,924

Taxes                                                                                     -137                      -628
Net profit                                                                                 394                     1,296

Net profit attributable to
Shareholders of the parent                                                                  390                    1,261
Minority                                                                                      4                       35




Basic earnings per share, SEK*                                                             0.86                      2.77

Diluted earnings per share, SEK*                                                           0.86                      2.77

Additions to property, plant and equipment                                                  494                      538

Number of employees registered                                                         43,653                     42,944

Return on capital employed for the
12-month period ended 31 March, %**                                                        18.7                      26.2

* 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
 - whereof A shares                                                              47,746,004                   48,996,034
 - whereof B shares                                                             407,605,064                  406,355,034

Total number of diluted shares outstanding                                      455,351,068                  455,942,847

Total weighted average number of diluted
shares                                                                          455,408,941                  455,979,288
Page 7 of 13



                                                                   Enclosure 2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (SEKm)

                                                 Jan-Mar 2009    Jan-Mar 2008

Net profit                                               394           1,296

Other comprehensive income
Exchange differences arising on translation of
foreign operations                                       499            -760

Available-for-sale assets                                 87            -235

Cash-flow hedges                                          -56             41

Actuarial gains and losses                               231            -681

Income tax relating to components of other
comprehensive income                                     -72              209
Other comprehensive income, net of tax                   689           -1,426

Total comprehensive income                              1,083           -130

Total comprehensive income attributable to
Shareholders of AB SKF                                  1,039           -102
Minority                                                   44            -28




CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (SEKm)

                                                    March 2009      March 2008
Opening balance 1 January                               19,689          18,355
Change in accounting principles                              -             655
Total comprehensive income                               1,083            -130
Exercise of options and cost for share
programmes, net                                            -10              -3
Other, including transactions with minority
owners                                                       -               5
Total cash dividends                                        -1               -
Closing balance                                         20,761          18,882
Page 8 of 13



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

Goodwill                                                                             3,181              3,119

Other intangible assets                                                              1,535              1,535

Property, plant and equipment                                                      14,829              14,556

Deferred tax assets                                                                  1,377              1,342

Other non-current assets                                                            1,504               1,366
Non-current assets                                                                 22,426              21,918

Inventories                                                                        15,136              15,204

Trade receivables                                                                  10,880              11,041

Other current assets                                                                 3,471              3,310

Other current financial assets                                                      5,861               4,627
Current assets                                                                     35,348              34,182

TOTAL ASSETS                                                                       57,774              56,100



Equity attributable to shareholders of AB SKF                                      19,784              18,750

Equity attributable to minority interests                                                 977            939

Long-term financial liabilities                                                    14,025              12,809

Provisions for post-employment benefits                                              6,335              6,356

Provisions for deferred taxes                                                        1,164              1,210

Other long-term liabilities and provisions                                          1,669               1,738
Non-current liabilities                                                            23,193              22,113

Trade payables                                                                       4,075              4,841

Short-term financial liabilities                                                          858            899

Other short-term liabilities and provisions                                         8,887               8,558
Current liabilities                                                                13,820              14,298

TOTAL EQUITY AND LIABILITIES                                                       57,774              56,100




* 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”.
Page 9 of 13



                                                                                                               Enclosure 4
CONSOLIDATED STATEMENTS OF CASH FLOW* (SEKm)

                                                                                  Jan-Mar 2009              Jan-Mar 2008
Operating activities:
Operating profit                                                                                  768                2,040
Depreciation, amortization and impairment                                                         581                  440
Net loss on sales of intangible assets, PPE, equity
securities, businesses and assets held for sale                                                  3                       1
Taxes                                                                                         -269                    -603
Other including financial and non-cash items                                                  -129                    -337
Changes in working capital                                                                      73                  -1,083
Net cash flow from operations                                                                1,027                     458

Investing activities:
Investments in intangible assets, PPE, businesses and
equity securities                                                                              -508                    -601
Sales of intangible assets, PPE, businesses, assets held
for sale, equity securities and pre-liquidation proceeds                                          4                      12
Net cash flow used in investing activities                                                     -504                    -589
Net cash flow after investments before financing                                                523                    -131

Financing activities:
Change in short- and long-term loans                                                           999                      -56
Payment of finance lease liabilities                                                            -2                        5
Cash dividends                                                                                  -1                        0
Investments in short-term financial assets                                                    -273                     -122
Sales of short-term financial assets                                                           175                      446
Net cash flow used in financing activities                                                     898                      273
NET CASH FLOW                                                                                1,421                      142



Change in cash and cash equivalents:
  Cash and cash equivalents at 1 January                                                     2,793                   2,946
  Cash effect, excl. acquired businesses                                                     1,421                     142
  Cash effect of acquired businesses                                                             0                       0
  Exchange rate effect                                                                          64                     -85
Cash and cash equivalents at 31 March                                                        4,278                   3,003




Change in net interest-                   Opening Translation   Cash Businesses   Other     Closing
bearing liabilities                       balance      effect change acquired/ non cash     balance
                                       1 Jan 2009                          sold changes 31 Mar 2009
Loans, long- and short-term                 13,447         25     999         -      56      14,527
Post-employment benefits, net                6,323        149    -106         -     -63        6,303
Financial assets, others                    -1,168        -28     -98         -      -1       -1,295
Cash and cash equivalents                   -2,793        -64 -1,421          -       -       -4,278
Net interest-bearing
liabilities                                  15,809               82      -626                -           -8          15,257



* 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.
Page 10 of 13



                                                                                                           Enclosure 5

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

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

Net sales                                    15,596       16,077        15,381       16,307       63,361        14,849
Cost of goods sold                          -11,526      -11,860       -11,420      -12,269      -47,075       -11,844
Gross profit                                  4,070        4,217         3,961        4,038      16,286          3,005

Gross margin, %                                26.1          26.2         25.8          24.8        25.7          20.2
Selling and administrative
expenses                                     -1,983        -2,123       -1,914       -2,523       -8,543        -2,219
Other operating income/
expenses - net                                  -44            38           37           -65         -34           -14
Profit/loss from jointly
controlled and associated
companies                                        -3            3            1             -           1             -4
Operating profit                              2,040        2,135        2,085         1,450       7,710            768

Operating margin, %                            13.1          13.3         13.6           8.9        12.2            5.2

Financial income and
expense - net                                  -116         -157         -226          -343        -842           -237
Profit before taxes                           1,924        1,978        1,859         1,107       6,868            531

Profit margin before taxes,%                   12.3          12.3         12.1           6.8        10.8            3.6

Taxes                                          -628          -609         -602         -288       -2,127          -137
Net profit                                    1,296        1,369        1,257           819       4,741            394

Net profit attributable to
Shareholders of the parent                    1,261         1,341        1,217          797        4,616           390
Minority                                         35            28           40           22          125             4




Basic earnings per share, SEK*                 2.77          2.95         2.67          1.75       10.14          0.86

Diluted earnings per share, SEK*               2.77          2.94         2.67          1.75       10.13          0.86

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

Gearing, %** ***                               38.2          49.0         49.2          50.1        50.1          50.1

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

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

Additions to property, plant
and equipment                                   538           584          696          713        2,531           494

Registered number of employees               42,944       43,158        45,035       44,799       44,799        43,653


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

**   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”.
Page 11 of 13



                                                                                                        Enclosure 6

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

                                                                                            Full year
                                             1/08         2/08            3/08      4/08        2008          1/09
Industrial Division
Net sales                                    5,535        5,676           5,500     6,151      22,862         5,752
Sales incl. intra-Group sales                8,256        8,420           8,114     8,940      33,730         8,138
Operating profit                             1,026          995           1,021     1,001       4,043           623
Operating margin*                           12.4%        11.8%           12.6%     11.2%       12.0%          7.7%
Assets and liabilities, net                14,351        14,809          15,959   18,098       18,098        18,725
Registered number of employees             18,765        18,890          19,195   19,166       19,166        18,766

Service Division
Net sales                                    5,099        5,417           5,393     5,998      21,907         5,060
Sales incl. intra-Group sales                5,210        5,515           5,501     6,092      22,318         5,167
Operating profit                               685          773            823      1,045       3,326           601
Operating margin*                           13.1%        14.0%           15.0%     17.2%       14.9%         11.6%
Assets and liabilities, net                  5,149        5,435           5,521     5,668       5,668         5,471
Registered number of employees               5,655        5,817           5,906     6,018       6,018         5,941

Automotive Division
Net sales                                    4,864        4,872           4,371     3,779      17,886         3,747
Sales incl. intra-Group sales                5,889        5,920           5,342     4,699      21,850         4,601
Operating profit                               381          403            306       -544         546          -441
Operating margin*                            6.5%          6.8%           5.7%    -11.6%        2.5%          -9.6%
Assets and liabilities, net                  8,791        9,060           9,911   10,070       10,070        10,426
Registered number of employees             15,828        15,737          15,713   15,256       15,256        14,612



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-Mar 2009          Jan-Mar 2008
Operating profit:
Industrial Division                                                                     623                 1,026
Service Division                                                                        601                   685
Automotive Division                                                                    -441                   381
Other operations outside the divisions                                                   38                    25
Unallocated Group activities and adjustments, net                                       -53                   -77

Financial net                                                                          -237                   -116

Profit before tax for the Group                                                         531                 1,924
Page 12 of 13



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

Net sales                                                                      401                   392
Cost of services provided                                                     -401                  -392
Gross profit                                                                     0                     0

Administrative expenses                                                        -57                      -26
Other operating income/expenses – net                                            0                        1
Operating loss                                                                 -57                      -25

Financial income and expenses - net          1                                  61                      682
Profit before taxes                                                              4                      657

Taxes                                                                           25                       16
Net profit                                                                      29                      673



PARENT COMPANY BALANCE SHEETS (SEKm)
                                            Note                      March 2009             March 2008

Investments in subsidiaries                                                 14,779                12,605
Receivables from subsidiaries                                               13,582                 7,194
Other non-current assets                                                       459                   373
Non-current assets                                                          28,820                20,172

Receivables from subsidiaries                                                  989                 1,182
Other receivables                                                              302                   293
Current assets                                                               1,291                 1,475

TOTAL ASSETS                                                                30,111                21,647


Shareholders’ equity                          2                              8,365                 9,350

Untaxed reserves                                                             1,095                 1,120

Provisions                                                                     174                      138

Non-current liabilities                                                     13,578                 7,031

Current liabilities                                                          6,899                 4,008
TOTAL SHAREHOLDERS’ EQUITY,
PROVISIONS AND LIABILITIES                                                  30,111                21,647
Assets pledged                                                                   0                     0
Contingent liabilities                                                           4                     3



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)                                   March 2009              March 2008

Opening balance 1 January                                                    8,258                  8,915
Net profit                                                                      29                    673
Other changes                                                                   78                   -238
Closing balance                                                              8,365                  9,350
Page 13 of 13



                                                                                   Enclosure 8

CHANGES IN ACCOUNTING PRINCIPLES

Post-employment benefits
The Group has changed the method of recognizing actuarial gains and losses (as allowed
by IAS 19 “Employee benefits”) for post-employment defined benefit plans. Effective from
1 January 2009, actuarial gains and losses will be immediately recognized in equity. The
cumulative effect of this change at 1 January 2009 is:

Previously reported equity 31 December 2008               20,598
Effect of IAS 19 change, net of tax of 479                  -909
Adjusted opening balance 1 January 2009                   19,689

New and/or amended accounting standards and interpretations issued by IASB
In accordance with IFRS the Group is required to include a description of the nature and effect
of new accounting standards and interpretations that will be effective for the next annual
financial statements.

The new items listed below are effective January 2009 and have not had any material
accounting impact on the Groups financial statements, however certain additional footnotes
disclosures will be required in the Annual Report 2009.

− IFRS 1 amendment “First-time Adoption of IFRS, Cost of an Investment” together with IAS
  27 amendment, Consolidated Financial Statements “Cost of an Investment”*
− IFRS 2 amendment “Share Based Payments: Vesting Conditions and Cancellations”
− IFRS 7 amendment “Improving Disclosures About Financial Instruments”*
− IFRS 8 “Operating Segments”, requires that segment disclosures be based on the internal
  reporting structure as presented to the highest level of Group management. The Groups
  segments, being the divisional structure, have not changed as a result of this standard.
− IAS 1 amendment “Financial Statement Presentation: A Revised Presentation” effects only
  the presentation of the Group’s financial statements. The most significant change is the
  requirement to present non-owner changes in equity separately from other changes in
  equity. This is shown in the new “Statement of Comprehensive Income” which is included in
  the enclosures to this quarter report.
− IAS 23 amendment “Borrowing Costs: Comprehensive Revision to Prohibit Immediate
  Expensing”
− IAS 32 amendment “Financial Statement Disclosures: Financial Instruments Puttable at Fair
  Value and Obligations Arising on Liquidation” together with consequential amendment to IAS
  1 “Financial Statement Presentation”
− IAS 39 amendment and IFRIC 9 amendment “Embedded Derivatives”*
− Annual improvements May 2008
− IFRIC 13 “Customer Loyalty Programmes”
− IFRIC 15 “Agreements for the Construction of Real Estate”*
− IFRIC 16 “Hedges of a Net Investment in a Foreign Operation”*

The impact of IFRIC 18 quot;Transfers of assets from customersquot;*, effective July 2009, has not yet
been determined.

* indicates that approval by EU is pending.

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Q1 2009 Earning Report of SKF AB

  • 1. SKF First-quarter report 2009 Tom Johnstone, President and CEO: “We saw a very significant drop in our sales volumes in the first quarter and reduced our manufacturing level even more. The actions which we have put in place to focus on profit and cash flow are having the right effect. Looking at the second quarter we expect to see a similar level of decline in volume year on year as we saw in the first quarter. However, we can see that the speed of decline sequentially is reducing which indicates that demand may be leveling outquot;. Q1 Q1 2009 2008 Net sales, SEKm 14,849 15,596 Operating profit, SEKm 768 2,040 Operating margin, % 5.2 13.1 Profit before taxes, SEKm 531 1,924 Net profit, SEKm 394 1,296 Basic earnings per share, SEK 0.86 2.77 The decrease of 4.8% in net sales for the quarter, in SEK, was attributable to: volume -26.9%, structure 1.4%, price/mix 7.1% and currency effects 13.6%. The quarter included expenses for restructuring activities and other one-time items of around SEK 175 million (0), of which around SEK 65 million are write downs and impairments. Approximately SEK 100 million of these expenses were announced already in December 2008 to be taken in 2009. Outlook for the second quarter of 2009 The demand for SKF products and services is expected to be significantly lower in the second quarter compared to the second quarter last year for the Group in total, for all the Divisions and for all regions. Compared to the first quarter, demand is expected to be slightly lower for the SKF Group in total and lower in Europe, slightly lower in North America and relatively unchanged in Asia and Latin America. Demand is expected to be relatively unchanged for the Automotive Division and slightly lower for both the Industrial and Service Division. The manufacturing level will be significantly lower year on year and relatively unchanged compared to the first quarter.
  • 2. Page 2 of 13 First quarter development The trend of weakening demand increased during the quarter and sales in local currencies were significantly lower for the Group in total, for all of the Divisions and in all regions of the world. While this dramatically lower business is affecting nearly all parts of the SKF Group, sales to certain segments such as energy, aerospace and passenger railways showed positive growth. SKF gained a number of new businesses during the quarter, for example 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. Fuwa supplies trailer axles to both Chinese and international manufacturers. SKF also gained an order for axleboxes and drive system bearings to CSR Zhuzhou Electric Locomotive Co., Ltd. ZELC. The order value is EUR 14 million. SKF started programmes in the second half of last year to adapt both the manufacturing level and the cost level to the new market situation. Cumulatively, by the end of the first quarter around 2,600 people had left the Group and an additional 1,700 will leave as a result of the programmes combined with other actions. Flexibility and increased time banks are being used throughout the Group and around 6,000 people are now on short-time working mainly in Germany and Italy. Manufacturing output is being continuously adjusted. In the first quarter it was 34% lower compared to the same quarter last year. Manufacturing will continue to be kept lower than sales to reflect demand and to further reduce inventory. Financial Key figures Q1 Q4 Q1 2009 2008 2008 Inventories, % of annual sales 24.2 24.0 19.4 ROCE for the 12-month period, % * 18.7 24.0 26.2 ROE for the 12-month period, % * 20.8 26,3 26.5 Equity/assets ratio, % * 35.9 35.1 39.8 Gearing, % * 50.1 50.1 38.2 Net debt/equity, % * 77.2 84.2 47.8 Registered number of employees on 31 March 43,653 44,799 42,944 * 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”, see enclosure 8. Cash flow, after investments and before financing, was SEK 523 million (-131) for the first quarter. Inventories versus Q4 2008, in local currencies, were reduced by around SEK 500 million. The financial net in the first quarter of 2009 was SEK -237 million (-116), including revaluation of share swaps of SEK -5 million (14). Exchange rates for the first quarter of 2009, including the effects of translation and transaction flows, had a positive effect on SKF’s operating profit of around SEK 225 million. Based on current assumptions and exchange rates, it is estimated that the positive effect for the second quarter of 2009 will be SEK 300 million and for the full year will be SEK 1 billion.
  • 3. Page 3 of 13 Industrial Division The operating profit for the first quarter amounted to SEK 623 million (1,026), resulting in an operating margin of 7.7% (12.4) on sales including intra-Group sales. The quarter included expenses for restructuring activities of around SEK 20 million (0). Sales including intra-Group sales for the quarter were SEK 8,138 million (8,256). Net sales for the first quarter amounted to SEK 5,752 million (5,535). The increase of 3.9% for the quarter was attributable to: organic growth -12.3%, structure 0.1%, and currency effects 16.1%. Sales in local currency for the first quarter were significantly lower in all regions. Service Division The operating profit for the first quarter amounted to SEK 601 million (685), resulting in an operating margin of 11.6% (13.1). Sales including intra-Group sales for the quarter were SEK 5,167 million (5,210). Net sales for the first quarter amounted to SEK 5,060 million (5,099). The decrease of 0.8% for the quarter was attributable to: organic growth -13.2%, structure 0%, and currency effects 12.4%. Sales in local currencies for the first quarter were significantly lower in all regions. Automotive Division The operating loss for the first quarter amounted to SEK -441 million (381), resulting in an operating margin of -9.6% (6.5). The quarter included expenses for restructuring activities and other one-time items of around SEK 155 million (0). Sales including intra-Group sales for the quarter were SEK 4,601 million (5,889). Net sales for the first quarter amounted to SEK 3,747 million (4,864). The decrease of 23% for the quarter was attributable to: organic growth -34.1%, structure 0.4%, and currency effects 10.7%. Sales in local currencies for the first quarter were significantly lower to the car and light truck, the heavy truck, the vehicle service market and the electrical industries in all the regions of the world. However, sales to the two wheeler industry in Asia were relatively unchanged. Previous outlook statement Outlook for the first quarter of 2009 (compared to the fourth quarter of 2008 and the first quarter last year) The demand for SKF products and services is expected to be significantly lower for the Group in total and for all regions. It is also expected to be significantly lower for the Automotive and Service Divisions and lower for the Industrial Division. The manufacturing level will be significantly lower to reflect both the new demand situation and to reduce inventory.
  • 4. Page 4 of 13 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. 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; quot;Most important factors influencing the financial resultsquot;, quot;Financial risksquot; and quot;Sensitivity analysisquot;, and in this quarterly report under quot;Risks and uncertainties in the business.quot; Göteborg, 21 April 2009 Aktiebolaget SKF (publ.) Tom Johnstone President and CEO Presentation On SKF’s website http://investors.skf.com/ (click on Presentations). Teleconference On 21 April at 13.00 (CET), 12.00 (UK), 7.00 (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/
  • 5. Page 5 of 13 AB SKF may be required to disclose the information provided herein according to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 12.00 (CET) on 21 April 2009. Enclosures: 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. 8. Changes in accounting principles 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 Changes in accounting principles (enclosure 8). 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 Half-year report 2009 will be published on Wednesday, 15 July 2009. 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
  • 6. Page 6 of 13 Enclosure 1 CONSOLIDATED INCOME STATEMENTS (SEKm) Jan-Mar 2009 Jan-Mar 2008 Net sales 14,849 15,596 Cost of goods sold -11,844 -11,526 Gross profit 3,005 4,070 Selling and administrative expenses -2,219 -1,983 Other operating income/expenses - net -14 -44 Profit/loss from jointly controlled and associated companies -4 -3 Operating profit 768 2,040 Operating margin, % 5.2 13.1 Financial income and expense - net -237 -116 Profit before taxes 531 1,924 Taxes -137 -628 Net profit 394 1,296 Net profit attributable to Shareholders of the parent 390 1,261 Minority 4 35 Basic earnings per share, SEK* 0.86 2.77 Diluted earnings per share, SEK* 0.86 2.77 Additions to property, plant and equipment 494 538 Number of employees registered 43,653 42,944 Return on capital employed for the 12-month period ended 31 March, %** 18.7 26.2 * 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 - whereof A shares 47,746,004 48,996,034 - whereof B shares 407,605,064 406,355,034 Total number of diluted shares outstanding 455,351,068 455,942,847 Total weighted average number of diluted shares 455,408,941 455,979,288
  • 7. Page 7 of 13 Enclosure 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (SEKm) Jan-Mar 2009 Jan-Mar 2008 Net profit 394 1,296 Other comprehensive income Exchange differences arising on translation of foreign operations 499 -760 Available-for-sale assets 87 -235 Cash-flow hedges -56 41 Actuarial gains and losses 231 -681 Income tax relating to components of other comprehensive income -72 209 Other comprehensive income, net of tax 689 -1,426 Total comprehensive income 1,083 -130 Total comprehensive income attributable to Shareholders of AB SKF 1,039 -102 Minority 44 -28 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (SEKm) March 2009 March 2008 Opening balance 1 January 19,689 18,355 Change in accounting principles - 655 Total comprehensive income 1,083 -130 Exercise of options and cost for share programmes, net -10 -3 Other, including transactions with minority owners - 5 Total cash dividends -1 - Closing balance 20,761 18,882
  • 8. Page 8 of 13 Enclosure 3 CONSOLIDATED BALANCE SHEETS* (SEKm) March 2009 December 2008 Goodwill 3,181 3,119 Other intangible assets 1,535 1,535 Property, plant and equipment 14,829 14,556 Deferred tax assets 1,377 1,342 Other non-current assets 1,504 1,366 Non-current assets 22,426 21,918 Inventories 15,136 15,204 Trade receivables 10,880 11,041 Other current assets 3,471 3,310 Other current financial assets 5,861 4,627 Current assets 35,348 34,182 TOTAL ASSETS 57,774 56,100 Equity attributable to shareholders of AB SKF 19,784 18,750 Equity attributable to minority interests 977 939 Long-term financial liabilities 14,025 12,809 Provisions for post-employment benefits 6,335 6,356 Provisions for deferred taxes 1,164 1,210 Other long-term liabilities and provisions 1,669 1,738 Non-current liabilities 23,193 22,113 Trade payables 4,075 4,841 Short-term financial liabilities 858 899 Other short-term liabilities and provisions 8,887 8,558 Current liabilities 13,820 14,298 TOTAL EQUITY AND LIABILITIES 57,774 56,100 * 2008 has been restated for change in accounting principle IAS 19 “Employee benefits”.
  • 9. Page 9 of 13 Enclosure 4 CONSOLIDATED STATEMENTS OF CASH FLOW* (SEKm) Jan-Mar 2009 Jan-Mar 2008 Operating activities: Operating profit 768 2,040 Depreciation, amortization and impairment 581 440 Net loss on sales of intangible assets, PPE, equity securities, businesses and assets held for sale 3 1 Taxes -269 -603 Other including financial and non-cash items -129 -337 Changes in working capital 73 -1,083 Net cash flow from operations 1,027 458 Investing activities: Investments in intangible assets, PPE, businesses and equity securities -508 -601 Sales of intangible assets, PPE, businesses, assets held for sale, equity securities and pre-liquidation proceeds 4 12 Net cash flow used in investing activities -504 -589 Net cash flow after investments before financing 523 -131 Financing activities: Change in short- and long-term loans 999 -56 Payment of finance lease liabilities -2 5 Cash dividends -1 0 Investments in short-term financial assets -273 -122 Sales of short-term financial assets 175 446 Net cash flow used in financing activities 898 273 NET CASH FLOW 1,421 142 Change in cash and cash equivalents: Cash and cash equivalents at 1 January 2,793 2,946 Cash effect, excl. acquired businesses 1,421 142 Cash effect of acquired businesses 0 0 Exchange rate effect 64 -85 Cash and cash equivalents at 31 March 4,278 3,003 Change in net interest- Opening Translation Cash Businesses Other Closing bearing liabilities balance effect change acquired/ non cash balance 1 Jan 2009 sold changes 31 Mar 2009 Loans, long- and short-term 13,447 25 999 - 56 14,527 Post-employment benefits, net 6,323 149 -106 - -63 6,303 Financial assets, others -1,168 -28 -98 - -1 -1,295 Cash and cash equivalents -2,793 -64 -1,421 - - -4,278 Net interest-bearing liabilities 15,809 82 -626 - -8 15,257 * 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.
  • 10. Page 10 of 13 Enclosure 5 CONSOLIDATED FINANCIAL INFORMATION - YEARLY AND QUARTERLY COMPARISONS (SEKm unless otherwise stated) Full year 1/08 2/08 3/08 4/08 2008 1/09 Net sales 15,596 16,077 15,381 16,307 63,361 14,849 Cost of goods sold -11,526 -11,860 -11,420 -12,269 -47,075 -11,844 Gross profit 4,070 4,217 3,961 4,038 16,286 3,005 Gross margin, % 26.1 26.2 25.8 24.8 25.7 20.2 Selling and administrative expenses -1,983 -2,123 -1,914 -2,523 -8,543 -2,219 Other operating income/ expenses - net -44 38 37 -65 -34 -14 Profit/loss from jointly controlled and associated companies -3 3 1 - 1 -4 Operating profit 2,040 2,135 2,085 1,450 7,710 768 Operating margin, % 13.1 13.3 13.6 8.9 12.2 5.2 Financial income and expense - net -116 -157 -226 -343 -842 -237 Profit before taxes 1,924 1,978 1,859 1,107 6,868 531 Profit margin before taxes,% 12.3 12.3 12.1 6.8 10.8 3.6 Taxes -628 -609 -602 -288 -2,127 -137 Net profit 1,296 1,369 1,257 819 4,741 394 Net profit attributable to Shareholders of the parent 1,261 1,341 1,217 797 4,616 390 Minority 35 28 40 22 125 4 Basic earnings per share, SEK* 2.77 2.95 2.67 1.75 10.14 0.86 Diluted earnings per share, SEK* 2.77 2.94 2.67 1.75 10.13 0.86 Return on capital employed for the 12-month period, %*** 26.2 26.6 26.6 24.0 24.0 18.7 Gearing, %** *** 38.2 49.0 49.2 50.1 50.1 50.1 Equity/assets ratio, %*** 39.8 32.3 33.7 35.1 35.1 35.9 Net worth per share, SEK* *** 40 33 36 41 41 43 Additions to property, plant and equipment 538 584 696 713 2,531 494 Registered number of employees 42,944 43,158 45,035 44,799 44,799 43,653 * Basic and diluted earnings per share and Net worth per share are based on net profit attributable to shareholders of the parent. ** 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”.
  • 11. Page 11 of 13 Enclosure 6 SEGMENT INFORMATION - YEARLY AND QUARTERLY COMPARISONS (SEKm unless otherwise stated) Full year 1/08 2/08 3/08 4/08 2008 1/09 Industrial Division Net sales 5,535 5,676 5,500 6,151 22,862 5,752 Sales incl. intra-Group sales 8,256 8,420 8,114 8,940 33,730 8,138 Operating profit 1,026 995 1,021 1,001 4,043 623 Operating margin* 12.4% 11.8% 12.6% 11.2% 12.0% 7.7% Assets and liabilities, net 14,351 14,809 15,959 18,098 18,098 18,725 Registered number of employees 18,765 18,890 19,195 19,166 19,166 18,766 Service Division Net sales 5,099 5,417 5,393 5,998 21,907 5,060 Sales incl. intra-Group sales 5,210 5,515 5,501 6,092 22,318 5,167 Operating profit 685 773 823 1,045 3,326 601 Operating margin* 13.1% 14.0% 15.0% 17.2% 14.9% 11.6% Assets and liabilities, net 5,149 5,435 5,521 5,668 5,668 5,471 Registered number of employees 5,655 5,817 5,906 6,018 6,018 5,941 Automotive Division Net sales 4,864 4,872 4,371 3,779 17,886 3,747 Sales incl. intra-Group sales 5,889 5,920 5,342 4,699 21,850 4,601 Operating profit 381 403 306 -544 546 -441 Operating margin* 6.5% 6.8% 5.7% -11.6% 2.5% -9.6% Assets and liabilities, net 8,791 9,060 9,911 10,070 10,070 10,426 Registered number of employees 15,828 15,737 15,713 15,256 15,256 14,612 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-Mar 2009 Jan-Mar 2008 Operating profit: Industrial Division 623 1,026 Service Division 601 685 Automotive Division -441 381 Other operations outside the divisions 38 25 Unallocated Group activities and adjustments, net -53 -77 Financial net -237 -116 Profit before tax for the Group 531 1,924
  • 12. Page 12 of 13 Enclosure 7 PARENT COMPANY INCOME STATEMENTS (SEKm) Note Jan-Mar 2009 Jan-Mar 2008 Net sales 401 392 Cost of services provided -401 -392 Gross profit 0 0 Administrative expenses -57 -26 Other operating income/expenses – net 0 1 Operating loss -57 -25 Financial income and expenses - net 1 61 682 Profit before taxes 4 657 Taxes 25 16 Net profit 29 673 PARENT COMPANY BALANCE SHEETS (SEKm) Note March 2009 March 2008 Investments in subsidiaries 14,779 12,605 Receivables from subsidiaries 13,582 7,194 Other non-current assets 459 373 Non-current assets 28,820 20,172 Receivables from subsidiaries 989 1,182 Other receivables 302 293 Current assets 1,291 1,475 TOTAL ASSETS 30,111 21,647 Shareholders’ equity 2 8,365 9,350 Untaxed reserves 1,095 1,120 Provisions 174 138 Non-current liabilities 13,578 7,031 Current liabilities 6,899 4,008 TOTAL SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES 30,111 21,647 Assets pledged 0 0 Contingent liabilities 4 3 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) March 2009 March 2008 Opening balance 1 January 8,258 8,915 Net profit 29 673 Other changes 78 -238 Closing balance 8,365 9,350
  • 13. Page 13 of 13 Enclosure 8 CHANGES IN ACCOUNTING PRINCIPLES Post-employment benefits The Group has changed the method of recognizing actuarial gains and losses (as allowed by IAS 19 “Employee benefits”) for post-employment defined benefit plans. Effective from 1 January 2009, actuarial gains and losses will be immediately recognized in equity. The cumulative effect of this change at 1 January 2009 is: Previously reported equity 31 December 2008 20,598 Effect of IAS 19 change, net of tax of 479 -909 Adjusted opening balance 1 January 2009 19,689 New and/or amended accounting standards and interpretations issued by IASB In accordance with IFRS the Group is required to include a description of the nature and effect of new accounting standards and interpretations that will be effective for the next annual financial statements. The new items listed below are effective January 2009 and have not had any material accounting impact on the Groups financial statements, however certain additional footnotes disclosures will be required in the Annual Report 2009. − IFRS 1 amendment “First-time Adoption of IFRS, Cost of an Investment” together with IAS 27 amendment, Consolidated Financial Statements “Cost of an Investment”* − IFRS 2 amendment “Share Based Payments: Vesting Conditions and Cancellations” − IFRS 7 amendment “Improving Disclosures About Financial Instruments”* − IFRS 8 “Operating Segments”, requires that segment disclosures be based on the internal reporting structure as presented to the highest level of Group management. The Groups segments, being the divisional structure, have not changed as a result of this standard. − IAS 1 amendment “Financial Statement Presentation: A Revised Presentation” effects only the presentation of the Group’s financial statements. The most significant change is the requirement to present non-owner changes in equity separately from other changes in equity. This is shown in the new “Statement of Comprehensive Income” which is included in the enclosures to this quarter report. − IAS 23 amendment “Borrowing Costs: Comprehensive Revision to Prohibit Immediate Expensing” − IAS 32 amendment “Financial Statement Disclosures: Financial Instruments Puttable at Fair Value and Obligations Arising on Liquidation” together with consequential amendment to IAS 1 “Financial Statement Presentation” − IAS 39 amendment and IFRIC 9 amendment “Embedded Derivatives”* − Annual improvements May 2008 − IFRIC 13 “Customer Loyalty Programmes” − IFRIC 15 “Agreements for the Construction of Real Estate”* − IFRIC 16 “Hedges of a Net Investment in a Foreign Operation”* The impact of IFRIC 18 quot;Transfers of assets from customersquot;*, effective July 2009, has not yet been determined. * indicates that approval by EU is pending.