1. Atlas Copco Group Q3 Results October 23, 2003

2. 2 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

3. October 23, 20033 Q3 - Highlights  Increased volume –Improved demand from manufacturing and mining customers –Strong growth in priority markets  Improved profitability –High revenue volume and a favourable sales mix –Further efficiency improvements mitigate negative currency effect –Continued improvement in Rental Service  Strong cash flow

4. October 23, 20034 Q3 - Figures in summary  Order and revenue volume up 5%  Operating margin at 12.7% (11.8)  Profit after financial items MSEK 1,368 (1,241) –Negative currency effect MSEK 300  Earnings per share up 15% to SEK 4.25  Operating cash flow at MSEK 1,702 (1,645)

5. October 23, 20035 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

6. October 23, 20036 B CA -3+143 +5+103 +6 35 +4+196 +10+122 +22+3511 September 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)

7. October 23, 20037 September 2003 Q3 - The Americas  Unchanged demand in North America –U.S. non-residential building remained at recent low levels, affecting demand for rental equipment and light construction equipment –Demand for investment related equipment unchanged  Positive development for mining and some industrial segments in South America -3+143 +5+103 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

8. October 23, 20038 Q3 - Europe and Africa/Middle East  Slightly better demand in Europe –Strong development in Eastern Europe, particularly in Russia –Improved demand from manufacturing and process industries –Still low construction activity  Improved demand in Africa/Middle East September 2003 +6 35 +4+196 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

9. October 23, 20039 Q3 - Asia and Australia  Good development overall –Strong growth in China –Favorable demand trends in most markets in the region September 2003 +10+122 +22+3511 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

10. October 23, 200310 –Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

11. October 23, 200311 Group Total Sales Bridge

12. October 23, 200312 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

13. October 23, 200313 Compressor Technique  Order volume up significantly, +15% –Growth in orders for industrial compressors, fuelled by demand in Asia and Europe –Recovery in orders for portable compressors and generators –Aftermarket continued to grow in all regions  Margin at 18.6% (19.4%) –Volumes, prices and efficiency measures mitigate large negative currency effects  Acquisition of Puska Pneumatic, Spain

14. October 23, 200314 Compressor Technique %

15. October 23, 200315 Rental Service  No improvement in non-residential building –Still down year-on-year  Rental revenues increased 2% in USD –Price increase of 3% –Same store volume growth  Double digit operating margin at 10.2% –An effect of better rental rates, high fleet utilization and efficiency improvements  Another quarter of strong cash flow

16. October 23, 200316 U.S. Construction August, 2003

17. October 23, 200317 Rental Service % Rental Revenue Volume Development

18. October 23, 200318 Rental Service EBIT - Bridge

19. October 23, 200319 Industrial Technique  Order volume down 4% –Up for industrial tools in all regions except North America but down for professional electric tools  Restructuring projects on track and contributing to recent margin improvement  Operating margin at 10% –Product cost reductions and favorable sales mix offset negative currency effects

20. October 23, 200320 % Industrial Technique

21. October 23, 200321 Construction & Mining Technique  Order volume growth, +8% –Mining orders continued to improve –Stabilization of order trend for light construction equipment  Very high invoicing offset sharply negative impact from currency  Acquisition of Chinese rock drilling equipment manufacturer

22. October 23, 200322 % Construction & Mining Technique

23. October 23, 200323 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

24. October 23, 200324 Income Statement

25. October 23, 200325 Balance Sheet September 30, 2003

26. October 23, 200326 Cash Flow

27. October 23, 200327 Capital Expenditures in Tangible Fixed Assets 19992000200120022003 MSEK Quarterly 12 months Net rental fleet investment = MSEK 1,254

28. October 23, 200328 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

29. October 23, 200329 Near-term Outlook The overall demand for the Group’s products and services, seasonally adjusted, is expected to improve slightly. The demand for industrial equipment is expected to continue to increase gradually in most geographical markets, and the demand from the mining industry is foreseen to remain favorable. Construction activity is expected to stay at a relatively low level in the biggest markets, the United States and the European Union.

30. October 23, 200330 The face of interaction

31. October 23, 200331 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.”

32. October 23, 200332 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

33. October 23, 200333 Long Term Trend Excluding goodwill impairment charge in Q3 2002

34. October 23, 200334 Compressor Technique

35. October 23, 200335 Rental Service Excluding goodwill impairment charge in Q3 2002

36. October 23, 200336 Industrial Technique

37. October 23, 200337 Construction & Mining Technique

38. October 23, 200338 Return on Capital Employed 12 month values 19992000200120022003 Excluding goodwill impairment charge in Q3 2002

39. October 23, 200339 Percent of Sales 12 Month Values 19992000200120022003 Inventories, Customer Receivables and Net Rental Equipment Atlas Copco Group

40. October 23, 200340 Capital Structure Net Debt / Equity

41. October 23, 200341 Cash and Interest-Bearing Debt 9,442 Sept. 2003 Net borrowings MSEK 13,694 Dec. 2002 19,325 Dec. 1999 22,270 Dec. 2000 20,078 Dec. 2001

42. October 23, 200342 The face of interaction