1. Atlas Copco Group Q4 Results February 2, 2004

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

3. February 2, 20043 2003 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%).

4. February 2, 20044 Earnings per Share and Dividend * Proposed by the Board of Directors ¤ Earnings per share excluding goodwill impairment charge * SEK ¤

5. February 2, 20045 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

6. February 2, 20046 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

7. February 2, 20047 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)

8. February 2, 20048 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

9. February 2, 20049 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) +342 +12+373 +7 35 +4 6 +13+223 11

10. February 2, 200410 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, % +342 +12+373

11. February 2, 200411 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, % +7 35 +4 6

12. February 2, 200412 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, % +13+223 11

13. February 2, 200413 –Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

14. February 2, 200414 Group Total Sales Bridge

15. February 2, 200415 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

16. February 2, 200416 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

17. February 2, 200417 Compressor Technique %

18. February 2, 200418 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

19. February 2, 200419 U.S. Construction October, 2003

20. February 2, 200420 Rental Service % Rental Revenue Volume Development

21. February 2, 200421 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)

22. February 2, 200422 % Industrial Technique

23. February 2, 200423 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

24. February 2, 200424 % Construction & Mining Technique

25. February 2, 200425 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

26. February 2, 200426 Income Statement

27. February 2, 200427 Balance Sheet December 31, 2003

28. February 2, 200428 Cash Flow

29. February 2, 200429 Capital Expenditures in Tangible Fixed Assets 19992000200120022003 MSEK Quarterly 12 months Net rental fleet investment = MSEK 1 175

30. February 2, 200430 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook

31. February 2, 200431 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.

32. February 2, 200432 The face of interaction

33. February 2, 200433 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.”

34. February 2, 200434 Contents  2003 Summary  Q4 Business Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

35. February 2, 200435 Long Term Trend Excluding goodwill impairment charge in Q3 2002

36. February 2, 200436 Compressor Technique

37. February 2, 200437 Rental Service Excluding goodwill impairment charge in Q3 2002

38. February 2, 200438 Industrial Technique

39. February 2, 200439 Construction & Mining Technique

40. February 2, 200440 Return on Capital Employed 12 month values 19992000200120022003 Excluding goodwill impairment charge in Q3 2002

41. February 2, 200441 Percent of Sales 12 Month Values 19992000200120022003 Inventories, Customer Receivables and Net Rental Equipment Atlas Copco Group

42. February 2, 200442 Capital Structure Net Debt / Equity

43. February 2, 200443 Cash and Interest-Bearing Debt 7 613 Dec. 2003 Net borrowings MSEK 13 694 Dec. 2002 19 325 Dec. 1999 22 270 Dec. 2000 20 078 Dec. 2001

44. February 2, 200444 The face of interaction