SKF India Limited59th Annual General Meeting

Manish Bhatnagar, Managing Director

© SKF Group

What We Strive To Achieve…

© SKF Group

Our Values and Drivers Govern Everything We Do…

Slide 3

Drivers

• Grow with Profit

• Quality

• Innovation

• Simplicity & Speed

• Sustainability

Values

• High Ethics

• Empowerment

• Openness

• Teamwork

© SKF Group

Macroeconomic Headwinds Continue…

5.7% 5.2% 4.4% 4.1%3.1%

Q4

18-1

9

Q1

19-2

0

Q2

19-2

0

Q3

19-2

0

Q4

19-2

0

75.9% 76.1%73.6%

69.1% 68.6%

Q3

18-1

9

Q4

18-1

9

Q1

19-2

0

Q2

19-2

0

Q3

19-2

0

GDP Growth at a 27 quarter low…

Domestic Consumption continues to decline…

Industrial Production in negative territory…

Capacity Utilization levels are at all-time lows…

Source: Ministry of Statistics and Programme Implementation, Reserve Bank of India, Society of Indian Automobile Manufacturers

-90%

-70%

-50%

-30%

-10%

10%

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-19

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-20

May

-20

Jun

-20

PV 2W

-50%

-40%

-30%

-20%

-10%

0%

10%

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-19

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-20

May

-20

© SKF Group

5 year Financial Highlights

Net Sales*27,959 MINR

Dividend6,427 MINR

(1300%)

EPS58.5

*Net sales for Q1 of 2017-18 , year ended 31.3.2017 & 15 months ended on 31.3.2016 includes Excise duty as per Ind AS, whereas 2014 & prior period are excluding Excise duty as per Indian-GAAP. In accordance with Ind AS 18- Revenue, GST (Goods and Services Tax) is not included in net sales w.e.f from July 1, 2017

© SKF Group

SKF Strategy

© SKF Group

SKF India Strategy

Digital sales

New business models

Innovation

World class manufacturing

Future workforce

Cleantech

Designing performance based solutions in Industrial Markets

Gaining share across Automotive OEMs

Increasing portfolio in Automotive Aftermarket

Increasing Sales Force Effectiveness across the organization

Increasing local for local and digitalization of Manufacturing Units

Our Rotating Equipment Performance (REP) solutions help minimize costs and maximise output for customers.

A steel customer wanted increased and efficient capacity utilization for higher best-in-class output.

SKF designed a comprehensive five-year performance based contract to help them achieve their goals. The scope includes operations, maintenance, spares supply and advanced technologies for rotating equipment performance enhancement.

© SKF Group

Remanufacturing is an energy-efficient and cost-effective process of returning a used product to its original performance while lowering environmental impact.

SKF provided remanufacturing solutions to a cement customer at a better price-value compared to new bearings. The delivery time was a month against a lead time of 8 months for a new bearing.

SKF has a local-for-local manufacturing footprint strategy.

We continuously invest to make our factories flexible, automated, smart and connected to better meet the customer and market needs.

By building more digitalized manufacturing operations, maintenance upkeep and supply chain capabilities across our factories, we are raising the bar for the industry and truly becoming a world-class manufacturing company.

SKF Stronger

© SKF Group

• Daily health check of employees• Support those who may be infected• Provide work from home guidance• Balance regulatory compliance with effective operations

Employee Health & Work

• Assess demand integrity, credit risks & supply availability• Factory start-up plans operationalized in record time• Preserve cash & liquidity• Revise forecasts & stress-test new scenarios

Business Strength

• Service camps & disinfection of essential services’ vehicles• Distribution of groceries & PPEs to the most affected• Employee contribution through cash transfers to daily wagers• Virtual trainings for YES, Scholarship & Sports program

Community Support

SKF Stronger: Our response to Covid-19

We continued our community support

activities

We resumed operations at our factories, offices &

distribution centers

Community Care

Addressing Sustainable

Development Goals

Touching 220,000+

lives

SKF Eco Impact Parks

Improving natural capital such as water and trees

along with creating awareness about plant biodiversity

in the local community.

1 Dam, 1 Lake

4,000+ Trees

Water Desilting

Community Participation

High school and college scholarships, including tuition, books,

hostel & other expenses for girl students from underserved

communities.

SKF Scholarship for Girls

10 Drought Affected

Districts

180 Beneficiary Girls

© SKF Group

Youth Empowerment at SKF: YES

Residential automotive service technician courses with

assured employability & entrepreneurship mentoring for

young adults from unserved communities.

Students from 21 States

3,000+Beneficiaries

80 % Placement

20 Entrepreneurs

SKF Sports Education Program

Professional sports coaching at SKF funded infrastructure,

focusing on nutrition, winning attitude and holistic development

of disadvantaged children.

500+Beneficiaries

75 Students in

Professional Clubs

10+ NationalTournaments

Played

8 Opted as Career

Summary

Summary

• Our vision, mission, values and drivers define everything that we do

• Our strategy is well-articulated and easily understood by stakeholders

• We have built a resilient business leveraging our strong leadership and

investments. This will help us emerge stronger through difficult times

• We will continue to engage meaningfully with our communities

DISCLAIMER : All the forward looking statements and growth aspects as explained at this meeting are subject to the external business environment

including - future market conditions, government policies, pandemic across the globe, etc, which is/are beyond the control of the Company.