Atlas Copco Group Q1 Results April 28, 2003

2 Contents  Q1 Business Highlights  Market Development  Business Areas  Financials  Outlook

April 28, Q1 Highlights  Weaker demand - order volumes down 1% –Weak market conditions in the United States –Good growth in high potential markets  Operating margin at 10.3% (10.0) –Cost savings and price increases offset effect of lower volumes –Large negative currency effects on sales and profits  Profit after financial items MSEK 956 (912)  EPS up 8% to SEK 3.03

April 28, Contents  Q1 Business Highlights  Market Development  Business Areas  Financials  Outlook

April 28, Orders received Change in Local Currency Portion of Group Sales, % Change in %, Q vs. Q March

April 28, Portion of Group Sales, % Change in %, Q vs. Q March 2003 Q1 - The Americas  Weak demand in the U.S. –Sluggish construction activity, low manufacturing capacity utilization and effects of the war in Iraq affected market conditions –Good level of mining activity  South America improved from low level

April 28, Portion of Group Sales, % Change in %, Q vs. Q Q1 - Europe and Africa/Middle East  Demand in Europe remained on a relatively good level –Steady growth in Eastern Europe –Stable level of industrial demand offset weak construction activity in Western Europe –Good demand for consumables and service  Favorable development in Africa / Middle East, in spite of the war in Iraq. March 2003

April 28, Portion of Group Sales, % Change in %, Q vs. Q Q1 - Asia and Australia  Another quarter of strong growth in China fuel growth in Asia  Continued growth in Australia March 2003

April 28, –Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

April 28, Group Total

April 28, Contents  Q1 Business Highlights  Market Development  Business Areas  Financials  Outlook

April 28, Compressor Technique  Order volume up 1%  Growth continued for industrial compressors and aftermarket –New products and successful territory management improve market position  Sales of portable compressors and generators negatively affected by weak construction market  China largest market for the business area  Profit margin improved, despite negative currency effects

April 28, Compressor Technique %

April 28, Rental Service  Non-residential building market remained weak  Industrial business increased  Rental volumes affected by weak demand and store closures –Flat same store rental revenues  Improved rental rates and higher fleet utilization  EBITDA margin unchanged  Strong cash flow continued

April 28, Rental Service Rental Revenue Growth %

April 28, EBIT - Bridge

April 28, Industrial Technique  Order volume flat –Growth for industrial tools through improved market position –Lower volumes for professional electric tools in North America  Acquisition of DreBo Werkzeugfabrik completed April 4, 2003 –Turnover MSEK 230  Operating margin negatively affected by currency effects and lower revenues

April 28, % Industrial Technique

April 28, Construction & Mining Technique  Sustained volume growth, + 3% –Increased investments from underground mines –Continued growth for drilling equipment for surface applications –Weak demand for light construction equipment  Restructuring charge MSEK 12  Margins negatively affected by weak US dollar

April 28, % Construction & Mining Technique

April 28, Contents  Q1 Business Highlights  Market Development  Business Areas  Financials  Outlook

April 28, Income Statement

April 28, Balance Sheet March 31, 2003

April 28, Cash Flow

April 28, Capital Expenditures in Tangible Fixed Assets MSEK Quarterly 12 months Net rental fleet investment = MSEK 353

April 28, Contents  Q1 Business Highlights  Market Development  Business Areas  Financials  Outlook

April 28, Near-term Outlook Demand in the Group’s two main regions, North America and Europe, is not expected to show any material change in the near term. Key business indicators such as capacity utilization, industrial production and building and construction activity in these regions are still weak. Demand from the mining industry and the overall demand in Asia is expected to remain favorable.

April 28, The face of interaction

April 28, 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.”

April 28, Contents  Q1 Business Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

April 28, Long Term Trend Excluding goodwill impairment charge in Q3 2002

April 28, Compressor Technique

April 28, Rental Service Excluding goodwill impairment charge in Q3 2002

April 28, Industrial Technique

April 28, Construction & Mining Technique

April 28, Items Affecting Comparability

April 28, Group Total excl. items affecting comparability

April 28, Return on Capital Employed 12 month values Excluding goodwill impairment charge in Q3 2002

April 28, Inventories, Customer Receivables and Net Rental Equipment Percent of Sales 12 Month Values

April 28, Cash and Interest-Bearing Debt 12,233 Mar Net borrowings MSEK 13,694 Dec ,325 Dec ,270 Dec ,078 Dec. 2001

April 28, The face of interaction