SKF applies the principles of sound corporate governance as an instrument for increased competitiveness and to promote capital market confidence in SKF. Among other things, this means that the company maintains an efficient organizational structure with clear
areas of responsibility, that the financial reporting is transparent and that the company in all respects maintains good corporate citizenship.

The corporate governance principles applied by SKF are based on Swedish law, in particular the Swedish Companies Act, and the regulatory system of NASDAQ OMX Stockholm AB ("Stockholm Stock Exchange").

Swedish Code of Corporate Governance

In December 2004 the Swedish Code of Corporate Governance was introduced (the "Code"). It is considered good stock exchange practice for Swedish companies whose shares are traded on a regulated market to apply the Code. SKF applies the Code.

The Swedish Corporate Governance Board (the board's role is to keep the Code up to date and to provide norms and standards for what is regarded as good corporate governance practice within Swedish listed companies) has published a brochure as a service to investors wishing to understand Swedish corporate governance. See links to the homepage of the Swedish Corporate Governance Board and the brochure below.

The Swedish Corporate Governance Board

Brochure: Special features of Swedish Corporate Governance

Corporate Governance Report

A Corporate Governance Report shall according to the Code be attached to the Annual Report of the Company.

SKF Annual Report 2008 - Corporate Governance Report, page 32 (Web version)