Atlas Copco Group Q4 Results February 2, 2004

2 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

February 2, Summary  Resumed volume growth, up 2% –Increased market presence, good development of aftermarket and continued flow of new products  Improved profitability, in spite of currency development –Operating margin 12% (11) and ROCE 17% (12)  Cash flow remained very strong –Operating cash flow, MSEK 5,609 (5,599) –Net cash flow, MSEK 3,620 (3,722)  Board propose 30% rise in dividend to 7.50 –Revised dividend policy - to distribute approximately 40-50% of earnings per share (previously 30-40%).

February 2, Earnings per Share and Dividend * Proposed by the Board of Directors ¤ Earnings per share excluding goodwill impairment charge * SEK ¤

February 2, Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

February 2, Q4 - Highlights  Increased volume –Improved demand from manufacturing and process industries –Stability in construction and mining  Improved profitability –Positive volume and price development –Negative currency effect continued –Continued efficiency improvement  Cash flow remained strong

February 2, Q4 - Figures in summary  Order volume up 5%  Operating margin at 12.8% (11.6)  Profit after financial items MSEK 1,377 (1,254) –Negative currency effect MSEK 245  Earnings per share at SEK 4.47  Operating cash flow at MSEK 1,292 (1,402)

February 2, Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

February 2, B CA December 2003 A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, % Orders received - Local currency Group total +4% YTD (+7%, 3 months)

February 2, December 2003 Q4 - The Americas  Gradual improvement in North America –Demand from manufacturing and process industries improved somewhat, but… –…low capacity utilization affect investments –…U.S. non-residential building remained at recent low levels, affecting demand for rental equipment  Strengthened demand in South America B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

February 2, Q4 - Europe and Africa/Middle East  Improved demand in Europe –Increased demand for compressors and tools and related aftermarket products and services from the manufacturing and process industries –Strong growth in Russia and good development in Germany and France  Slight improvement in Africa/Middle East December 2003 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

February 2, Q4 - Asia and Australia  Positive development continued –Strong growth in China –Increased demand for compressors in most markets in the region  Another quarter of positive development in Australia December 2003 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

February 2, –Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

February 2, Group Total Sales Bridge

February 2, Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

February 2, Compressor Technique  Order volume up 7% –Aftermarket products and services grew in all regions –Healthy growth for industrial compressors –Portable compressors and generators saw demand improve from low levels –Asia, South America and many markets in Europe had a strong quarter  Margin at 18.4% (19.2) –Revenue volumes, prices and efficiency measures mitigate large negative currency effects

February 2, Compressor Technique %

February 2, Rental Service  Continued weak non-residential building activity  Rental revenues increased 2% in USD –Price increase of 3,5%  Fleet utilization close to 65% in the quarter  Operating margin at 9.3% (6.2) –EBITDA at 28% (26) –Successful management of rental rates –Cost savings in payroll and depreciation partially offset by rising health care and insurance cost

February 2, U.S. Construction October, 2003

February 2, Rental Service % Rental Revenue Volume Development

February 2, Industrial Technique  Order volume up 4% –Good demand from motor vehicle industry drive growth in industrial tools –Volumes for professional electric tools improved –Aftermarket products, services and accessories, assisted by acquired business, showed good growth in all regions  Restructuring projects close to finalization  Operating margin at 12.1% (11.0)

February 2, % Industrial Technique

February 2, Construction & Mining Technique  Order volume growth 7% –Mining orders continued to be strong –Continued good development for surface drilling rigs and flat order intake for underground drilling rigs for construction –Growth in aftermarket business in all regions  Move of loaders business to Sweden near completion  Profit margin improved –Higher revenue volume and price increases offset negative impact from currency

February 2, % Construction & Mining Technique

February 2, Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

February 2, Income Statement

February 2, Balance Sheet December 31, 2003

February 2, Cash Flow

February 2, Capital Expenditures in Tangible Fixed Assets MSEK Quarterly 12 months Net rental fleet investment = MSEK 1 175

February 2, Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

February 2, Near-term Outlook The recent positive demand development for Atlas Copco’s products and services is expected to continue. The manufacturing and process industries are expected to increase their investments in productivity enhancing equipment and demand more aftermarket products and services. The demand from the construction and mining industries is expected to remain at present levels.

February 2, The face of interaction

February 2, 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.”

February 2, Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

February 2, Long Term Trend Excluding goodwill impairment charge in Q3 2002

February 2, Compressor Technique

February 2, Rental Service Excluding goodwill impairment charge in Q3 2002

February 2, Industrial Technique

February 2, Construction & Mining Technique

February 2, Return on Capital Employed 12 month values Excluding goodwill impairment charge in Q3 2002

February 2, Percent of Sales 12 Month Values Inventories, Customer Receivables and Net Rental Equipment Atlas Copco Group

February 2, Capital Structure Net Debt / Equity

February 2, Cash and Interest-Bearing Debt Dec Net borrowings MSEK Dec Dec Dec Dec. 2001

February 2, The face of interaction