1. Atlas Copco Group
Q1 Results
April 27, 2004
April 27, 2004

2. Contents Q1 Business Highlights Market Development Business Areas
Financials
Outlook
April 27, 2004

3. Q1 - Highlights Robust volume growth Improved profitability
Demand continued to improve
Increased activity in manufacturing and process industries and also among construction customers
Improved profitability
Strong volume gains across all product areas
Efficiency improvements
Negative currency effect continued
Agreement signed to acquire Ingersoll-Rand Drilling Solutions
April 27, 2004

4. Q1 - Figures in summary Order volume up 11%
Operating margin at 12.1% (10.3)
Profit after financial items MSEK (956)
Negative currency effect MSEK 210
Earnings per share at SEK 3.91 (3.03)
Operating cash flow at MSEK 837 (1 191)
ROCE at 18% (13)
April 27, 2004

5. Contents Q1 Business Highlights Market Development Business Areas
Financials
Outlook
April 27, 2004

6. Orders received - Local currency
March 2004
Group total +14% YTD (+14%, 3 months) 35 +9 +9 41 +9 +9 12
+46
+46 6 +7 +7 3
+20
+20 3
+33
+33
A= Portion of Group sales last 12 months, % A B C
B= Year-to-date vs prev. year, %
April 27, 2004
C= Last 3 months vs prev. year, %

7. Q1 - The Americas Demand improved in North America
March 2004
Demand improved in North America
Increased activity in manufacturing and process industries
No improvement in U.S. non-residential building, affecting demand for rental equipment
Strong demand from mining
Mining industry and general economic recovery drive demand in South America 41 +9 +9 3
+20
+20
North America excl. RSBA: -1%
A= Portion of Group sales last 12 months, % A B C
B= Year-to-date vs prev. year, %
C= Last 3 months vs prev. year, %
April 27, 2004

8. Q1 - Europe and Africa/Middle East
March 2004
Volume growth in Europe
Increased demand from both manufacturing and construction, benefiting industrial and portable compressors, drilling rigs and light construction equipment
Best development in Germany, France, Spain and Russia
Good demand from most industries in Africa/Middle East
Gulf-region particularly strong 35 +9 +9 6 +7 +7
Western Europe: +3% Eastern Europe: +40%
A= Portion of Group sales last 12 months, % A B C
B= Year-to-date vs prev. year, %
C= Last 3 months vs prev. year, %
April 27, 2004

9. Q1 - Asia and Australia Continued strong demand in Asia
March 2004
Continued strong demand in Asia
China the main growth driver
Recent positive trend in India confirmed and good development in South Korea and Japan.
Another quarter of positive development in Australia 12
+46
+46 3
+33
+33
A= Portion of Group sales last 12 months, % A B C
B= Year-to-date vs prev. year, %
C= Last 3 months vs prev. year, %
April 27, 2004

10. Volume Growth per Quarter
Change in orders received in % vs. same Quarter previous year
April 27, 2004

11. Group Total
Sales Bridge
April 27, 2004

12. Contents Q1 Business Highlights Market Development Business Areas
Financials
Outlook
April 27, 2004

13. Compressor Technique Order volume up 18%
Significant growth for stationary industrial, portable, and gas- and process compressors
New service products and increased presence support aftermarket growth
Agreement to acquire Guimerá S.A.
Margin at 18.0% (18.3)
Revenue volumes, prices and efficiency measures mitigate negative currency effects
April 27, 2004

14. Compressor Technique % %
April 27, 2004

15. Rental Service Flat non-residential building activity
Rental revenues increased 6% in USD
Price +5%, volume +1%
Same store volume +4%
Record fleet utilization rate in first quarter
Operating margin at 7.4% (4.2)
EBITDA at 27% (26)
Cost savings in payroll and depreciation were offset by higher benefits and insurance cost
April 27, 2004

16. U.S. Construction
February, 2004
April 27, 2004

17. Rental Service
Rental Revenue Volume Development %
April 27, 2004

18. Industrial Technique Order volume up 5%
Good growth for industrial tools, both from motor vehicle industry and general industry
Volumes for professional electric tools increased in the United States
Aftermarket products and accessories, developed favorably
Agreement to acquire Chinese industrial air tool manufacturer QQPMC
Operating margin at 11.1% (7.6)
Best Q1 since 1995
April 27, 2004

19. Industrial Technique % %
April 27, 2004

20. Construction & Mining Technique
Order volume growth 16%
Significant growth in mining orders, both equipment and aftermarket
General improvement in demand for construction equipment. Good demand for both drilling equipment and light construction equipment.
Agreement signed to acquire Ingersoll- Rand Drilling Solutions
Profit margin improved
Higher revenue volume offset negative impact from currency
April 27, 2004

21. Construction & Mining Technique% %
April 27, 2004

22. Contents Q1 Business Highlights Market Development Business Areas
Financials
Outlook
April 27, 2004

23. Income Statement
April 27, 2004

24. Balance Sheet
March 31, 2004
April 27, 2004

25. Cash Flow
April 27, 2004

26. Net rental fleet investment
Capital Expenditures
in Tangible Fixed Assets
Net rental fleet investment
= MSEK 1 397
MSEK
Quarterly
12 months
2000
2001
2002
2003
2004
April 27, 2004

27. Contents Q1 Business Highlights Market Development Business Areas
Financials
Outlook
April 27, 2004

28. Near-term Outlook
The positive demand trend for Atlas Copco’s products and services is expected to continue.
The manufacturing and process industries are expected to continue to increase their investments and demand more aftermarket products and services. It is foreseen that the recent general improvement in demand for construction equipment will continue, even though the activity level in the important non-residential building sector in the United States is expected to remain largely flat. Demand from the mining industry is expected to remain high.
April 27, 2004

29. The face of interaction
This is the face of Atlas Copco. The visual head-hand combination symbolizes knowledge and experience, with a personal touch. The head represents the knowledge and skills required helping customers get the job done. The hand is the perfect partner and symbolizes the hands-on experience and the commitment to helping customers achieve results.
April 27, 2004

30. 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 27, 2004

31. Contents Q1 Business Highlights Market Development Business Areas
Financials
Outlook
Additional Information
April 27, 2004

32. Long Term Trend
Excluding goodwill impairment charge in Q3 2002
April 27, 2004

33. Compressor Technique
April 27, 2004

34. Rental Service
Excluding goodwill impairment charge in Q3 2002
April 27, 2004

35. Industrial Technique
April 27, 2004

36. Construction & Mining Technique
April 27, 2004

37. Return on Capital Employed
12 month values
2000
2001
2002
2003
2004
Excluding goodwill impairment charge in Q3 2002
April 27, 2004

38. Atlas Copco Group
Inventories, Customer Receivables and Net Rental Equipment
Percent of Sales
12 Month Values
2000
2001
2002
2003
2004
April 27, 2004

39. RR29 / IAS 19 Employee benefits
Effects of change in accounting principle
Balance sheet (restatement of opening balance)
Equity decrease MSEK 424
Provisions for pensions increase MSEK 773
Balance is mainly deferred tax receivables
Income statement (Q1)
Pension costs net of employee contribution affected operating profit positively by MSEK 8
Interest costs net of return on plan assets affected interest net negatively by MSEK 8
April 27, 2004

40. Capital Structure
Net Debt / Equity
April 27, 2004

41. Cash and Interest-Bearing Debt
MSEK
Net borrowings
20 078
Dec.
2001
13 694
Dec.
2002
7 613
Dec.
2003
8 386
Dec.
2003
Restated
7 933
March.
2004
April 27, 2004

42. The face of interaction
This is the face of Atlas Copco. The visual head-hand combination symbolizes knowledge and experience, with a personal touch. The head represents the knowledge and skills required helping customers get the job done. The hand is the perfect partner and symbolizes the hands-on experience and the commitment to helping customers achieve results.
April 27, 2004