1. Atlas Copco Group Q2 Results July 17, 2003

2. 2 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

3. July 17, 20033 Q2 Highlights  Good performance despite weak market conditions and adverse currency effects –Strong development in priority markets  Product cost reductions and increased efficiency contributed to the good result  Strategic focus on the aftermarket pays off  Improved performance in rental services despite no improvement in market conditions  Efficient processes contribute to high and stable cash flow

4. July 17, 20034 Q2 in Summary  Order volumes down 1%,  Revenue volume up 1%  Large negative currency effects on sales and profits  Operating margin at 11.7% (10.8)  Profit after financial items MSEK 1,212 (1,074)  Operating cash flow at MSEK 1,424 (1,029)  EPS up 20% to SEK 3.87

5. July 17, 20035 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

6. July 17, 20036 -445 3 +4 2 35 -125 +1510 Orders received Portion of Group Sales, % Change in %, Q2 2003 vs. Q2 2002 June 2003 0 +9 Change in Local Currency

7. July 17, 20037 -445 03 Portion of Group Sales, % Change in %, Q2 2003 vs. Q2 2002 June 2003 Q2 - The Americas  Unchanged demand –Weak construction activity continued to affect demand for rental equipment and light construction equipment –No improvement in demand for investment related equipment  Mining demand favorable

8. July 17, 20038 +935 -125 Portion of Group Sales, % Change in %, Q2 2003 vs. Q2 2002 Q2 - Europe and Africa/Middle East  Mixed demand in Europe –Strong development in Eastern Europe and United Kingdom –Southern Europe and Nordic weakened –Demand from industrial customers offset weak construction in EU  South Africa very strong –Comparison affected by large orders in Middle East in 2002 June 2003

9. July 17, 20039 +42 +1510 Portion of Group Sales, % Change in %, Q2 2003 vs. Q2 2002 Q2 - Asia and Australia  Strong demand in Asia and Australia –China continued to grow. South Korea, Taiwan and South East Asia also developed positively. June 2003

10. July 17, 200310 –Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

11. July 17, 200311 Group Total

12. July 17, 200312 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

13. July 17, 200313 Compressor Technique  Order volume up 2% –Growth continued for industrial compressors, particularly oil-free units, and aftermarket –Specialty rental and aftermarket mitigate effects of weak demand for equipment in the portable compressor and generator business  Asia strongest region  Profit margin at 18.5%, despite large negative currency effects

14. July 17, 200314 Compressor Technique %

15. July 17, 200315 Rental Service  Market remained weak  Rental revenues declined 4% in USD  Operating profit margin improved to 8.1% –Higher rental rates and significant efficiency improvements more than offset volume drop  Utilization rate improved and non- available fleet was reduced further  Strong cash flow continued

16. July 17, 200316 U.S. Construction May, 2003 Construction Put in Place Seasonally adjusted rate in current dollars Source: US Dep. of Commerce July 1, 2003

17. July 17, 200317 U.S. Construction May, 2003 Non-Residential Construction 12 month year-on-year change Source: US Dep. of Commerce July 1, 2003

18. July 17, 200318 Rental Service % Rental Revenue Volume Development

19. July 17, 200319 EBIT - Bridge

20. July 17, 200320 Industrial Technique  Order volume flat –Volumes up for industrial tools –Professional electric tools suffered from overall weak construction activity  Restructuring projects on track  Operating margin at 10.0% –Higher revenue volume, product cost reductions, sales mix and acquired business more than offset negative currency effects

21. July 17, 200321 % Industrial Technique

22. July 17, 200322 Construction & Mining Technique  Healthy volume growth, + 11% –Good demand from mining industry and for drilling equipment for construction purposes –Continued weak demand for light construction equipment  Transfer of loader business on track –Restructuring charge MSEK 15  Acquisition of exploration drilling businesses in South Africa  Negative currency impact increased and affected operating margins heavily

23. July 17, 200323 % Construction & Mining Technique

24. July 17, 200324 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

25. July 17, 200325 Income Statement

26. July 17, 200326 Balance Sheet June 30, 2003

27. July 17, 200327 Change in accounting principles RR29 / IAS 19  As of January 1, 2004 the Group will implement the new Swedish accounting standards RR29 “Employee benefits”.  The one-time-effect of this change will be charged directly to shareholders’ equity in accordance with RR5 “Accounting for changes in accounting principles”, and has no cash flow or income statement effect.  The one-time effect on equity has been preliminarily estimated to MSEK 700. The preliminary amount is calculated on the situation as per December 31, 2002. The amount to be booked on January 1, 2004 will of course be affected by changes during 2003 in key parameters, e.g. interest rates and valuations of pension funds.  The Group’s obligations related to pension benefits and other employee benefits will not be affected by the change.

28. July 17, 200328 Cash Flow

29. July 17, 200329 Capital Expenditures in Tangible Fixed Assets 19992000200120022003 MSEK Quarterly 12 months Net rental fleet investment = MSEK 740

30. July 17, 200330 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

31. July 17, 200331 Near-term Outlook The overall demand for the Group’s products and services is expected to be unchanged or improve slightly. The construction business is expected to remain weak in most regions while the outlook for demand from industrial sectors is slightly positive. Demand from the mining industry is foreseen to be favorable and Asia is expected to continue its positive development.

32. July 17, 200332 The face of interaction

33. July 17, 200333 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. July 17, 200334 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

35. July 17, 200335 Long Term Trend Excluding goodwill impairment charge in Q3 2002

36. July 17, 200336 Compressor Technique

37. July 17, 200337 Rental Service Excluding goodwill impairment charge in Q3 2002

38. July 17, 200338 Industrial Technique

39. July 17, 200339 Construction & Mining Technique

40. July 17, 200340 Items Affecting Comparability

41. July 17, 200341 Atlas Copco Group excl. items affecting comparability

42. July 17, 200342 Return on Capital Employed 12 month values 19992000200120022003 Excluding goodwill impairment charge in Q3 2002

43. July 17, 200343 Percent of Sales 12 Month Values 19992000200120022003 Inventories, Customer Receivables and Net Rental Equipment Atlas Copco Group

44. July 17, 200344 Capital Structure Net Debt/Equity

45. July 17, 200345 Cash and Interest-Bearing Debt 11,506 June 2003 Net borrowings MSEK 13,694 Dec. 2002 19,325 Dec. 1999 22,270 Dec. 2000 20,078 Dec. 2001

46. July 17, 200346 The face of interaction