Atlas Copco Group Q2 Results July 18, 2002

Page 2 July 18, 2002www.atlascopco-group.com Contents  Q2 Highlights  Market Development  Business Areas  Financials  Outlook

Page 3 July 18, 2002www.atlascopco-group.com Q2 Highlights  Order volumes stabilized  North America still weak  Europe better than anticipated  China continued strong  Order volumes down 1% overall (-7% in Q1)  Profit after financial items MSEK 1,074 (1,310)  Operating margin 10.8% (13.1)  Low volume and lower rental rates in Rental Service primary reason for margin drop  Negative currency effect

Page 4 July 18, 2002www.atlascopco-group.com Q2 Highlights (cont.)  Strong operating cash flow of MSEK 1,029  Relocation of assembly operations in Atlas Copco Electric Tools  Launch of Milwaukee brand in Europe  Building presence in China and Russia  Liutech acquisition finalized  Organic growth in Russia

Page 5 July 18, 2002www.atlascopco-group.com Contents  Q2 Highlights  Market Development  Business Areas  Financials  Outlook

Page 6 July 18, 2002www.atlascopco-group.com Orders received, Q vs. Q Change in Local Currency Portion of Group Sales, % Change in %, Q vs. Q June 2002

Page 7 July 18, 2002www.atlascopco-group.com Portion of Group Sales, % Change in %, Q vs. Q June 2002 Q2 - The Americas  Demand below previous year  Low activity in non-residential building and manufacturing industry affecting the rental business  Low capacity utilization affected demand for investment related goods  Slightly improved demand for production-related equipment and tools  Negative development continued in most South American markets

Page 8 July 18, 2002www.atlascopco-group.com June 2002 Portion of Group Sales, % Change in %, Q vs. Q Q2 - Europe and Africa/Middle East  Stable Europe  Low capacity utilization affected demand  Demand from construction industry unchanged  Nordic and Eastern Europe positive, France and U.K. negative, Germany mixed  Africa/Middle East  Large projects enhance continued growth in region

Page 9 July 18, 2002www.atlascopco-group.com June 2002 Portion of Group Sales, % Change in %, Q vs. Q Q2 - Asia and Australia  Overall good demand in Asia  Strong demand in China continued  Most industry segments improved, while electronics industry remained weak  Weak development in Japan  Good development in Australia

Page 10 July 18, 2002www.atlascopco-group.com  Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

Page 11 July 18, 2002www.atlascopco-group.com Group Total

Page 12 July 18, 2002www.atlascopco-group.com Contents  Q2 Highlights  Market Development  Business Areas  Financials  Outlook

Page 13 July 18, 2002www.atlascopco-group.com Volume Growth Compressor Technique  Change in orders received vs. same quarter previous year, %

Page 14 July 18, 2002www.atlascopco-group.com Compressor Technique  Orders received up 1%  Standard industrial compressors enjoy good demand.  Mixed demand for large industrial and portable compressors  China still strong and European market better than expected  Liutech acquisition finalized  Operating margin 19.1%

Page 15 July 18, 2002www.atlascopco-group.com Volume Growth Rental Service  Change in orders received vs. same quarter previous year, %

Page 16 July 18, 2002www.atlascopco-group.com Rental Service  Weak market  Non-residential building and maintenance activities in industrial segment remain weak  Rental rates below previous year  Rental revenues decline 5% in volume  Actions  Capital efficiency measures - reduced rental fleet but more fleet available  Rationalization of support functions  Strong cash generation

Page 17 July 18, 2002www.atlascopco-group.com Volume Growth Industrial Technique  Change in orders received vs. same quarter previous year, %

Page 18 July 18, 2002www.atlascopco-group.com Industrial Technique  Demand for fastening tools from motor vehicle industry continued to be weak  Improved demand for professional electric tools in North America  Plan to relocate some assembly operations from Germany to Czech Republic  Change in mix and lower volume affected profit margin

Page 19 July 18, 2002www.atlascopco-group.com Volume Growth Construction & Mining Technique  Change in orders received vs. same quarter previous year, %

Page 20 July 18, 2002www.atlascopco-group.com Construction & Mining Technique  Orders up 3%  Drilling equipment for surface and underground construction saw increased demand  Orders from mining industry flat  After-market business improved further  Krupp and MAI acquisitions finalized  Annual sales approx. MSEK 670  Operating profit 10.4%

Page 21 July 18, 2002www.atlascopco-group.com Contents  Q2 Highlights  Market Development  Business Areas  Financials  Outlook

Page 22 July 18, 2002www.atlascopco-group.com Income Statement

Page 23 July 18, 2002www.atlascopco-group.com Balance Sheet June 30, 2002

Page 24 July 18, 2002www.atlascopco-group.com Cash Flow

Page 25 July 18, 2002www.atlascopco-group.com Capital Expenditures in Tangible Fixed Assets MSEK Quarterly 12 months Net rental fleet investment = MSEK 819

Page 26 July 18, 2002www.atlascopco-group.com Contents  Q2 Highlights  Market Development  Business Areas  Financials  Outlook

Page 27 July 18, 2002www.atlascopco-group.com Near-term Outlook Overall, the demand for Atlas Copco’s products and services is expected to remain at the present level. Investment in the two main regions, North America and Europe, is not expected to increase, while recent increases in manufacturing output in the United States are likely to support ongoing modest growth in demand for production-related equipment and tools in that market. Demand for rental equipment in the United States is expected to remain unchanged in the next quarter. Demand in Asia is expected to continue to develop favorably.

Page 28 July 18, 2002www.atlascopco-group.com The face of interaction

Page 29 July 18, 2002www.atlascopco-group.com 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.”

Page 30 July 18, 2002www.atlascopco-group.com Contents  Q2 Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

Page 31 July 18, 2002www.atlascopco-group.com Orders received, Jan. - June Group Total MSEK 24, months, Portion of Group Sales, % Change 2002 / 2001, %

Page 32 July 18, 2002www.atlascopco-group.com Long Term Trend

Page 33 July 18, 2002www.atlascopco-group.com Compressor Technique

Page 34 July 18, 2002www.atlascopco-group.com Compressor Technique

Page 35 July 18, 2002www.atlascopco-group.com Rental Service

Page 36 July 18, 2002www.atlascopco-group.com Rental Service

Page 37 July 18, 2002www.atlascopco-group.com Industrial Technique

Page 38 July 18, 2002www.atlascopco-group.com Industrial Technique

Page 39 July 18, 2002www.atlascopco-group.com Construction & Mining Technique

Page 40 July 18, 2002www.atlascopco-group.com Construction & Mining Technique

Page 41 July 18, 2002www.atlascopco-group.com Group Total

Page 42 July 18, 2002www.atlascopco-group.com Items Affecting Comparability

Page 43 July 18, 2002www.atlascopco-group.com Group Total excl. items affecting comparability

Page 44 July 18, 2002www.atlascopco-group.com Earnings Before Interest and Taxes MSEK % month values EBIT margin excluding items affecting comparability 1999 = 12.1%, 2000 = 13.8%, 2001 = 12.5%, 2002 June = 10.9% 2002 June

Page 45 July 18, 2002www.atlascopco-group.com Return on Capital Employed 12 month values

Page 46 July 18, 2002www.atlascopco-group.com Earnings per Share and Dividend

Page 47 July 18, 2002www.atlascopco-group.com Taxes MSEK % June

Page 48 July 18, 2002www.atlascopco-group.com Inventories, Customer Receivables and Net Rental Equipment Percent of Sales 12 Month Values

Page 49 July 18, 2002www.atlascopco-group.com Cash and Interest-Bearing Debt 17,184 Jun ,052 Dec ,325 Dec ,270 Dec Net borrowings 20,078 Dec MSEK

Page 50 July 18, 2002www.atlascopco-group.com Capital Structure Net Debt/Equity

Page 51 July 18, 2002www.atlascopco-group.com The face of interaction