February 2, Atlas Copco Group Q4 Results February 2, 2010

February 2, Contents  Q4 Business Highlights  Market Development  Business Areas  Financials  2009 Summary  Outlook

February 2, Q4 - Highlights  Slight improvement in demand compared with previous quarters –Noticeable in most emerging markets… –…and from the mining industry –Still low investment level  Sales of aftermarket products and services increased  Healthy profit margins –Low volumes continue to affect negatively –Cost reductions, favorable sales mix and low financial costs gave support  Operating cash flow remained very strong  Proposed dividend of SEK 3.00 (3.00) per share and a share buyback program

February 2, Q4 - Figures in summary  Organic order intake down 9%... –…but flat if adjusted for cancellations previous year  Revenues of MSEK ; 18% organic decline  Operating profit at MSEK (3 288) –Restructuring cost of MSEK 80 (258) –Adjusted operating margin of 15.9% (18.7)  Profit before tax at MSEK (3 508) –Previous year included tax-free gain of MSEK 939  Earnings per share SEK 1.39 (2.39)  Operating cash flow MSEK (2 401)

February 2, Contents  Q4 Business Highlights  Market Development  Business Areas  Financials  2009 Summary  Outlook

February 2, Orders received - Local currency December 2009 ABC A =Portion of sales, Year-to-date, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, % Group total -27% YTD, 0% last 3 months Effect of cancellations 1% YTD, 9% last 3 months

February 2, Q4 - The Americas  Slight sequential improvement in North America –Sales of industrial equipment and related aftermarket improved somewhat –Construction remain very weak  Order growth in South America –Improved demand for mining and construction equipment December 2009 ABC A =Portion of sales, Year-to-date, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, %

February 2, Q4 - Europe and Africa/Middle East  Overall demand remained low in Europe, but… –…slight improvement in Germany and in the Nordic countries –…improved demand from mining industry in Eastern Europe –Solid aftermarket  Weak quarter in Africa / Middle East –Sales of gas and process compressors declined –No improvement in Southern Africa December 2009 ABC A =Portion of sales, Year-to-date, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, %

February 2, Q4 - Asia and Australia  Positive development for all business areas in Asia –Growth in China, India and many other markets in South Asia. –Negative development in Japan and South Korea  Gradual recovery of demand in Australia –Pick-up in the mining industry December 2009 A =Portion of sales, Year-to-date, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, % ABC

February 2, Organic * Growth per Quarter  Change in orders received in % vs. same quarter previous year Atlas Copco Group, continuing operations *Volume and price

February 2, Atlas Copco Group – Sales Bridge * Cancellations in Q and Q1 2009

February 2, Contents  Q4 Business Highlights  Market Development  Business Areas  Financials  2009 Summary  Outlook

February 2, Atlas Copco Group Operating Profit and Return On Capital Employed (ROCE) by Business Area

February 2, Compressor Technique  Overall demand remained on low level –12% organic order decline vs. Q –Good development in emerging markets –Improved demand for standard compressors –Weak order intake for gas and process compressors –Stable aftermarket business  Operating margin at 19.6% –Improvement from previous quarters thanks to increased revenues and favorable sales mix  Agreement to acquire Quincy Compressor  Investment in manufacturing facility in China 14February 2, 2010,

February 2, Compressor Technique Quarterly operating margins include Prime Energy from Q *Volume and price

February 2, Construction and Mining Technique  Improved order intake compared with previous quarters –Demand in mining and infrastructure construction developed positively –Growth in aftermarket and consumables –Organic order decline of 5% vs. Q  Operating margin at 14.1% –Low volumes compared with previous year affected negatively, while cost savings gave support –Less favorable sales mix compared with Q3

February 2, Construction and Mining Technique *Volume and price

February 2, Industrial Technique  Slight improvement in order intake compared with previous quarters –Continued weak demand in most developed markets –Growth in Asia, both from the motor vehicle industry and the general industry. –Organic order intake down 14% vs. Q  Adjusted operating profit margin at 12.9% –Restructuring costs of MSEK 80, primarily related to closure of manufacturing facilities in Germany and Japan.

February 2, Industrial Technique *Volume and price

February 2, Contents  Q4 Business Highlights  Market Development  Business Areas  Financials  2009 Summary  Outlook

February 2, Group Total

February 2, Profit Bridge October – December, 2009 vs 2008

February 2, Profit Bridge – by Business Area October – December, 2009 vs 2008

February 2, Balance Sheet

February 2, Capital Structure Net Debt*/EBITDA *Net Debt adjusted for the fair value of interest rate swaps

February 2, Atlas Copco AB’s Loan Maturity Profile

February 2, Cash Flow

February 2, Contents  Q4 Business Highlights  Market Development  Business Areas  Financials  2009 Summary  Outlook

February 2, Revenues and operating margin 2004 pro forma, excluding divested businesses Figures in summary

February 2, Highlights  Healthy profitability in very challenging business climate  Quick adaptation to low demand  Sustained strong focus on market presence and product development  Order intake declined 21%, 29% organic decline  Revenues declined 14% to , 22% organic decline  Operating profit down 34% to MSEK –Restructuring costs of MSEK 569, adjusted margin of 15.1% (19.0)  Very strong cash flow of MSEK (4 751)

February 2, Atlas Copco Group Earnings per Share, Dividend and Redemption * Proposed by the Board of Directors

February 2, Committed to Sustainable Productivity Committed to sustainable productivity means: … that Atlas Copco people do everything they can to ensure reliable, lasting results with responsible use of resources; human, natural, and capital. 32 New brand promise for Atlas Copco

February 2, Contents  Q4 Business Highlights  Market Development  Business Areas  Financials  2009 Summary  Outlook

February 2, Near-term Outlook The overall demand for the Group’s products and services is expected to improve somewhat. Many emerging markets are foreseen to have a continued favorable development and demand from the mining industry is expected to improve.

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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 and adversely affected by other factors such as the effect of economic conditions, exchange-rate and interest-rate movements, political risks, the impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.”