Atlas Copco Group

Atlas Copco Group Q1 Results April 27, 2005

Contents • Q1 Business Highlights • Market Development • Business Areas • Financials • Outlook

Q1 - Highlights • Strong growth • Record profit margins • Strong performance from acquired units • Continued improvement in Rental Service • Price increases and efficiency measures offset higher component and energy costs • Acquisitions strengthen core businesses within CT, CMT and IT • Divestment of professional electric tool business on January 3, 2005

Q1 - Figures in summary • Order received up 17%, volume up 8% • Revenues reached MSEK 11 168 (9 595), up 10% in volume • Operating profit at MSEK 1 737, a margin of 15.6% (13.8) • Capital gain on professional electric tools divestment deferred • 2004 restated for IFRS • Profit after financial items up 35% to MSEK 1 665 (1 231) • Earnings per share increased to SEK 5.55 (4.38) • Operating cash flow at MSEK 685 (862) • ROCE at 23%

Orders received - Local currency March 2005 Group total +8% YTD, +21 excl. discontinued operations(Structural change +10% YTD, excl. discontinued operations) 34 0 +10 39 +3 +27 12 +12 +14 6 +26 +28 5 +79 +83 4 +30 +40 A= Portion of Group sales last 12 months, % A B C B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

Q1 - The Americas March 2005 • Strong development in North America • Increased demand from manufacturing and process industries • Non-residential construction activity improved • Very good demand from the mining industry • Continued strong demand in South America 39 +3 +27 5 +79 +83 A= Portion of Group sales last 12 months, % A B C B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

Q1 - Europe and Africa/Middle East March 2005 • Demand in Europe increased • Increased investments in compressed air equipment and industrial tools in the manufacturing and process industries • Improved demand for construction equipment, still strong for mining equipment • Best development in Eastern Europe, the Nordic countries, Great Britain and Spain • Overall positive demand development in Africa / Middle East 34 0 +10 6 +26 +28 A= Portion of Group sales last 12 months, % A B C B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

Q1 - Asia and Australia March 2005 • Continued growth in Asia • Healthy demand for standard industrial compressors • Lower demand from large projects in China • Strong performance in India, South East Asia and Japan. • Strong growth in Australia, primarily due to mining demand 12 +12 +14 4 +30 +40 A= Portion of Group sales last 12 months, % A B C B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

Volume Growth per Quarter • Change in orders received in % vs. same Quarter previous year

Group Total Sales Bridge

Compressor Technique • Record level of order received • Volume growth 7% • Positive sales development in the Americas • Strong growth for portable compressors and specialty rental business • Demand for stationary industrial compressors and related aftermarket business increased further • Breakthrough order from liquid natural gas market • Improved operating margin • Positive volume effect and price increases more than offset the negative currency impact and higher components costs

Compressor Technique • Operating margins restated (IFRS) from 2004

Construction & Mining Technique • Orders received up 63% • 17% volume growth for comparable units • Continued strong demand from mining industry and improved demand for light construction equipment • Strong contribution from recently acquired businesses • Operating profit improved • Acquisition of Lifton, a manufacturer of hydraulic handheld breaker equipment

Construction & Mining Technique • Operating margins restated (IFRS) from 2004

Rental Service • Recovery in non-residential construction activity continued • Rental revenues increased 13% in USD • Price +10%, volume +3% • Fleet utilization at record level • Profitability improved significantly • Record operating margin in a first quarter • Return on total capital employed above the Group’s WACC

Rental Service Rental Revenue Volume Development • Operating margins restated (IFRS) from 2004

Industrial Technique • Order volume up 9% for industrial tools • Good demand from all major customer segments • Strong development in North America • Record operating margin • Acquisitions of specialized tightening solutions businesses • Divestment of electric tools business finalized on January 3, 2005.

Industrial Technique • Operating margins restated (IFRS) from 2004

Income Statement Adjusted for IFRS

Balance Sheet Adjusted for IFRS

Cash Flow Adjusted for IFRS

Capital Expenditures in Tangible Fixed Assets Net rental fleet investment = MSEK 2 421 MSEK 12 months Quarterly 2001 2002 2003 2004 2005

Dividend and Redemption Average annual dividend growth (ordinary dividend) 13,6% * * Proposed by the Board of Directors

Near-term Outlook The demand for Atlas Copco’s products and services is expected to remain at current high level. Demand from manufacturing and process industries is expected to stay favorable in most markets. Activity in the construction industry is expected to continue to increase somewhat in North America and in most developing countries. Demand from the mining industry is expected to remain strong.

Cautionary Statement • “Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and the major customer credit losses.”

Atlas Copco Group