Index Group Handout Atlas Copco Group – June 30 th 2000 The face of interaction

Index Contents Q2 Highlights Market Development Business Areas Financials Outlook

Index Atlas Copco Group Highlights in Q2 Strong volume development, orders up 13 percent

Index Atlas Copco Group Volume Growth per Quarter

Index Atlas Copco Group Highlights in Q2 Strong volume development, orders up 13 percent Operating margin increased to 13.5% (12.3), still with areas of large improvement potential Double-digit rental growth in spite of flat underlying construction markets E-business projects on track

Index Continuous improvements production products marketing organization business flows Flow organization to better serve our customers Innovations new technology new concepts new methods Project organization to safeguard long-term results “More of the same” geography - applications technology - products Asia Use of Products Strategy

Index Strategic Moves Growth –Rapid expansion of production in China –Rental Service completed 20 cold starts and acquired 20 stores in the quarter Development –VSD technology expand in range of compressors –Internal service providers (ASAP + ISP) in operation –Full e-trade functionality in Milwaukee web-site –People

Index People Use of Products People in service positions increased with four percentage points to 35% in the second quarter

Index Market Development

Index Market Quotes

Index Atlas Copco Group - Orders received, April - June Group Total 11,620 MSEK +33% Portion of Group Sales Change in value 2000 /

Index Portion of Group Sales Change in value 2000 / 1999 Q2 - The Americas Continued high level of demand in North America Market share gains in North America Brazilian economy continued to progress Good demand for mining equipment

Index Portion of Group Sales Change in value 2000 / 1999 Q2 - Europe and Africa Overall improved demand in Europe. GB, Alpine region and parts of Southern Europe strong Relatively weak in Germany and Nordic region Positive development in South Africa and Middle East

Index Portion of Group Sales Change in value 2000 / 1999 Q2 - Asia and Australia Growth continues in Asia Highlight - upturn in Chinese market

Index Atlas Copco Group Group Total

Index Business Areas

Index Atlas Copco Compressor Technique Overall strong sales growth Successful launch of new Variable Speed Drive (VSD) compressors

Index Atlas Copco Compressor Technique

Index Atlas Copco Construction and Mining Technique Strong demand from the mining industry Successful introduction of new drilling rigs Efficiency measures give result

Index Atlas Copco Construction & Mining Technique

Index Atlas Copco Industrial Technique Orders for sophisticated Atlas Copco branded industrial tools were very strong Milwaukee Electric Tools launched a new Internet site, which offers fully integrated e-trade

Index Atlas Copco Industrial Technique

Index Atlas Copco Rental Service Margins up in the second quarter Outsourcing trend secures growth ISP, an internal administrative and marketing service provider, was established. More synergies still to come. 20 cold starts, 20 acquired stores, 538 stores in total.

Index Atlas Copco Rental Service

Index Financials

Index Atlas Copco Group Cash Flow

Index Atlas Copco Group Capital Expenditures in Tangible Fixed Assets SEK m June Quarterly 12months

Index Atlas Copco Group Balance Sheet, June 30

Index Atlas Copco Group Income Statement

Index Outlook

Index Atlas Copco Group Industrial and Geographical Near Term Demand Outlook (Dotted Arrows Indicate Risk/Opportunity) Total Demand Outlook August 2000Weight by Industry Weight by Region 15% 10% 20% 40% 5% Construction Mechanical Automotive Mining Process Others South America North America Europe 10% 4% 50% 32% Africa/Middle East Asia/Australia 4%

Index The face of interaction

Index The face of interaction End of Presentation

Index Extra Information New Group Website Growth and Trends Margins and Earnings Taxes Inventories, Customer Receivables and Net Rental Equipment Cash and Interest Bearing Debt Profit per Share Demand Keys

Index New Group Website –Group –Press –Investor –Career –etc... Multibrand - each brand has own site –Atlas Copco Brand - –Prime - –etc....

Index Atlas Copco Group - Orders received, Jan. - June Group Total 22,708 MSEK +34% Portion of Group Sales Change in value 2000 /

Index Atlas Copco Group Volume Growth per Quarter by Business Area

Index Atlas Copco Group Long Term Trend

Index Atlas Copco Compressor Technique

Index Atlas Copco Construction & Mining Technique

Index Atlas Copco Industrial Technique

Index Atlas Copco Rental Service

Index Atlas Copco Group Operating Margins per Quarter

Index Atlas Copco Group Earnings by Business Area April - June

Index Atlas Copco Group Earnings by Business Area January - June

Index Atlas Copco Group Earnings before Interest and Taxes % of NIS SEK m June 12 month values 13.3* * 12.9 * Excluding non-recurring items 12.1 and 13.1 percent respectively Group Target

Index Atlas Copco Group Profit after Financial Items % of NIS SEK m * * month values 2000 June * Excluding non-recurring items 9.2 and 9.5 percent respectively

Index Atlas Copco Group Taxes July - June

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

Index Atlas Copco Group Cash and Interest Bearing Debt SEKm Long-term loans 1,866 1,6132,1181,2861,0012,485 Pensions Cash 10,969 11,275 1,910 1,924 2,201 1,940 1,450 1,380 Net borrowings 3,1661,899 10,21410,05219,32521,340 Dec Dec Dec Dec Dec June ,5867,6104,922 8,192 9,686 1,889 Short-term loans 5,308 2,016

Index Atlas Copco Group Profit per Share - Quarterly and 12 Month Values SEK :96 2:30 2:942:80 2:83 2:53 12:73 10:15 11:56 2:08 2:71 3:27 2:76 3:23 1:87 3: :81 3:063:02 11:50 3:34 3:27 3:32

Index Total Demand Outlook Atlas Copco Group “Six Demand Keys” August 2000 Capital Goods 45%Expendables and After Market 55% Industry Mining Construction Industrial Machine Investment Metal Ore Production Mining Machine Investment Infrastructure and Public Investment Industrial Production Construction Activity

Index Quarterly presentation - Group Handout - June 30, 2000 Index Contents Q2 Highlights Strategy Strategic Moves People Market Development Orders received, April - June Group Total Compressor Technique Construction and Mining Technique Industrial Technique Rental Service Financials Cash Flow Capital Expenditures Balance Sheet Income Statement Outlook Extra Information - Contents New Group Website Growth and Trends Margins and Earnings Taxes Inventories, Receivables and Net Rental Equipment Cash and Interest Bearing Debt Profit per Share Demand Keys