1. Group Handout Atlas Copco Group – September 30 th 2000 The face of interaction

2. Contents Q3 Highlights and Strategic Moves Market Development Business Areas Financials Outlook

3. Q3 Highlights and Strategic Moves Highest results ever in a single quarter Demand remained robust –Softening in U.S. construction market has not affected demand for rental equipment Merger of Prime and RSC Improved operating margins - a good step towards our ambitions Innovative and successful product launches

4. Atlas Copco Group Volume Growth per Quarter

5. Market Development

6. Atlas Copco Group - Orders received, July - September Group Total 11,743 MSEK +25% +3953 +174 +82 Portion of Group Sales Change in value 2000 / 1999 +127 +94 +5910

7. Portion of Group Sales Change in value 2000 / 1999 +3953 +174 Q3 - The Americas Robust demand level in North America –Rental –High activity in petrochemical industry –Construction related products affected at the end of period South America mixed –Brazil strong –Peru and Argentina slowing down

8. Q3 - Europe and Africa Mixed in Western Europe –Investments in Germany still low –UK, France and southern Europe strong Positive development in Central Europe Improving business climate in Russia Southern Africa shows good demand Positive development in Middle East +127 +94 Portion of Group Sales Change in value 2000 / 1999

9. Q3 - Asia and Australia Strong growth in China –Internal consumption –Infrastructure development –Good demand from export driven industries Positive trend in Japan and South East Asia 6 +82 +5910 Portion of Group Sales Change in value 2000 / 1999

10. Atlas Copco Group Group Total* * Including non-recurring items

11. Atlas Copco Group Non-recurring items Q3

12. Atlas Copco Group Group Total - exkl. non-recurring items

13. Business Areas

14. Atlas Copco Compressor Technique Strong growth, particularly in industrial compressors –Innovations Profit increase by 20% Very positive development in Asia Clear and positive trend toward service contracts

15. Atlas Copco Compressor Technique

16. Atlas Copco Construction and Mining Technique Continues robust order intake from the mining sector, particularly consumables Infrastructure projects in China Acquisition of Hobic, a drill-bit manufacturer

17. Atlas Copco Construction & Mining Technique

18. Atlas Copco Industrial Technique Professional Electric Tools –Growing demand in Europe –Signs of less growth in U.S. Very strong order intake for computer controlled tools Strong increase in recurring operating profit

19. Atlas Copco Industrial Technique * EBIT in Q3 1999 includes SEK 83 m. of non-recurring gain. Adjusted profit was SEK 205 m. and margin 8.1% in the quarter, and SEK 678 m. and margin 8.9% in the nine-months

20. Prime RSC Atlas Copco Rental Service Solid increase in revenues –High level of demand in construction industry –Continues strengthening of industrial rental operations Merger of Prime and RSC 14 new greenfield operations and 14 stores acquired Improved fleet utilization

21. Atlas Copco Rental Service * EBIT in Q3 2000 includes SEK 127 m. of non-recurring cost. Adjusted profit is SEK 597 m. and margin 15.9% in the quarter, and SEK 1,450 m. and margin 14.3% in the nine-months.

22. Financials

23. Atlas Copco Group Cash Flow

24. Atlas Copco Group Capital Expenditures in Tangible Fixed Assets SEK m 1997 2000 Sept. 199919981996 Quarterly 12months Net rental fleet investment = approx. SEK 4.1 billion

25. Atlas Copco Group Balance Sheet, September 30

26. Atlas Copco Group Income Statement

27. Outlook

28. Atlas Copco Group Industrial and Geographical Near Term Demand Outlook (Dotted Arrows Indicate Risk/Opportunity) Weight by IndustryWeight by Region 15% 10% 20% 40% 5% Construction Mechanical Automotive Mining Process Others North America 11% 4% 50% 31% Africa/Middle East Asia/Australia 4% South America Europe Total Demand Outlook October 2000

29. The face of interaction

30. Additional Information

31. Atlas Copco Group - Orders received, January - September Group Total 34,451 MSEK +31% +5551 +284 +122 Portion of Group Sales Change in value 2000 / 1999 +254 +439 +330

32. Atlas Copco Group Volume Growth per Quarter by Business Area

33. Atlas Copco Group Long Term Trend

34. Atlas Copco Compressor Technique

35. Atlas Copco Construction & Mining Technique

36. Atlas Copco Industrial Technique

37. Atlas Copco Rental Service

38. Atlas Copco Group Earnings before Interest and Taxes % of NIS SEK m 1988199019921994 1996 1998 2000 September 12 month values 13.5 9.29.3 7.3 9.0 11.7 12.3* 12.9 * Excluding non-recurring items 12.1 Group Target

39. Atlas Copco Group Taxes 19961997199819992000 Oct. - Sept.

40. Atlas Copco Group Inventories, Customer Receivables and Net Rental Equipment, Percent of Sales 12 Month Values 19961999199819971995 2000

41. Atlas Copco Group Cash and Interest Bearing Debt SEKm Long-term loans 1,866 1,6132,1181,2861,1212,485 Pensions Cash 10,969 12,139 1,910 1,924 2,201 1,940 1,450 1,456 Net borrowings 3,1661,899 10,21410,05219,325 23,501 Dec. 1995 Dec. 1996 Dec. 1997 Dec. 1998 Dec. 1999 Sept. 2000 2,5867,6104,922 8,192 11,027 1,889 Short-term loans 5,308 2,016

42. Atlas Copco Group Profit per Share - Quarterly and 12 Month Values SEK 1998199920001996 11:96 2:30 2:942:80 2:83 2:53 13:10 10:15 11:56 2:08 2:71 3:27 2:76 3:23 1:87 3:15 1997 2:81 3:063:02 11:50 3:34 3:27 3:32 3:71

43. 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.”