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

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

3. Index Atlas Copco Group Highlights in Q2 Strong volume development, orders up 13 percent

4. Index Atlas Copco Group Volume Growth per Quarter

5. Index Atlas Copco Group Highlights in Q2 Strong volume development, orders up 13 percent Operating margin increased to 13.5% (12.3), still with areas of large improvement potential Double-digit rental growth in spite of flat underlying construction markets E-business projects on track

6. Index Continuous improvements production products marketing organization business flows Flow organization to better serve our customers Innovations new technology new concepts new methods Project organization to safeguard long-term results “More of the same” geography - applications technology - products Asia Use of Products Strategy

7. Index Strategic Moves Growth –Rapid expansion of production in China –Rental Service completed 20 cold starts and acquired 20 stores in the quarter Development –VSD technology expand in range of compressors –Internal service providers (ASAP + ISP) in operation –Full e-trade functionality in Milwaukee web-site –People

8. Index People Use of Products People in service positions increased with four percentage points to 35% in the second quarter

9. Index Market Development

10. Index Market Quotes

11. Index Atlas Copco Group - Orders received, April - June Group Total 11,620 MSEK +33% +6250 +184 +142 Portion of Group Sales Change in value 2000 / 1999 +531 +475 +298

12. Index Portion of Group Sales Change in value 2000 / 1999 Q2 - The Americas Continued high level of demand in North America Market share gains in North America Brazilian economy continued to progress Good demand for mining equipment +6250 +184

13. Index Portion of Group Sales Change in value 2000 / 1999 Q2 - Europe and Africa Overall improved demand in Europe. GB, Alpine region and parts of Southern Europe strong Relatively weak in Germany and Nordic region Positive development in South Africa and Middle East +531 +475

14. Index Portion of Group Sales Change in value 2000 / 1999 Q2 - Asia and Australia Growth continues in Asia Highlight - upturn in Chinese market 6 +142 +298

15. Index Atlas Copco Group Group Total

16. Index Business Areas

17. Index Atlas Copco Compressor Technique Overall strong sales growth Successful launch of new Variable Speed Drive (VSD) compressors

18. Index Atlas Copco Compressor Technique

19. Index Atlas Copco Construction and Mining Technique Strong demand from the mining industry Successful introduction of new drilling rigs Efficiency measures give result

20. Index Atlas Copco Construction & Mining Technique

21. Index Atlas Copco Industrial Technique Orders for sophisticated Atlas Copco branded industrial tools were very strong Milwaukee Electric Tools launched a new Internet site, which offers fully integrated e-trade

22. Index Atlas Copco Industrial Technique

23. Index Atlas Copco Rental Service Margins up in the second quarter Outsourcing trend secures growth ISP, an internal administrative and marketing service provider, was established. More synergies still to come. 20 cold starts, 20 acquired stores, 538 stores in total.

24. Index Atlas Copco Rental Service

25. Index Financials

26. Index Atlas Copco Group Cash Flow

27. Index Atlas Copco Group Capital Expenditures in Tangible Fixed Assets SEK m 1997 2000 June 199919981996 Quarterly 12months

28. Index Atlas Copco Group Balance Sheet, June 30

29. Index Atlas Copco Group Income Statement

30. Index Outlook

31. Index Atlas Copco Group Industrial and Geographical Near Term Demand Outlook (Dotted Arrows Indicate Risk/Opportunity) Total Demand Outlook August 2000Weight by Industry Weight by Region 15% 10% 20% 40% 5% Construction Mechanical Automotive Mining Process Others South America North America Europe 10% 4% 50% 32% Africa/Middle East Asia/Australia 4%

32. Index The face of interaction

33. Index The face of interaction End of Presentation

35. Index Extra Information New Group Website Growth and Trends Margins and Earnings Taxes Inventories, Customer Receivables and Net Rental Equipment Cash and Interest Bearing Debt Profit per Share Demand Keys

36. Index www.atlascopco-group.com New Group Website –Group –Press –Investor –Career –etc... Multibrand - each brand has own site –Atlas Copco Brand - www.atlascopco.com –Prime - www.prime-equip.com –etc....

37. Index Atlas Copco Group - Orders received, Jan. - June Group Total 22,708 MSEK +34% +6750 +344 +142 Portion of Group Sales Change in value 2000 / 1999 +432 +344 +358

38. Index Atlas Copco Group Volume Growth per Quarter by Business Area

39. Index Atlas Copco Group Long Term Trend

40. Index Atlas Copco Compressor Technique

41. Index Atlas Copco Construction & Mining Technique

42. Index Atlas Copco Industrial Technique

43. Index Atlas Copco Rental Service

44. Index Atlas Copco Group Operating Margins per Quarter

45. Index Atlas Copco Group Earnings by Business Area April - June

46. Index Atlas Copco Group Earnings by Business Area January - June

47. Index Atlas Copco Group Earnings before Interest and Taxes % of NIS SEK m 1988199019921994 1996 1998 2000 June 12 month values 13.3* 9.29.3 7.3 9.0 11.7 12.3* 12.9 * Excluding non-recurring items 12.1 and 13.1 percent respectively Group Target

48. Index Atlas Copco Group Profit after Financial Items % of NIS SEK m 198819901992 19941996 1998 9.7* 9.0 7.9 6.4 9.3 11.8 9.4* 10.8 12 month values 2000 June * Excluding non-recurring items 9.2 and 9.5 percent respectively

49. Index Atlas Copco Group Taxes 19961997199819992000 36.3 33.3 35.0 36.136.4 July - June

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

51. Index Atlas Copco Group Cash and Interest Bearing Debt SEKm Long-term loans 1,866 1,6132,1181,2861,0012,485 Pensions Cash 10,969 11,275 1,910 1,924 2,201 1,940 1,450 1,380 Net borrowings 3,1661,899 10,21410,05219,32521,340 Dec. 1995 Dec. 1996 Dec. 1997 Dec. 1998 Dec. 1999 June 2000 2,5867,6104,922 8,192 9,686 1,889 Short-term loans 5,308 2,016

52. Index Atlas Copco Group Profit per Share - Quarterly and 12 Month Values SEK 1998199920001996 11:96 2:30 2:942:80 2:83 2:53 12:73 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

53. Index Total Demand Outlook Atlas Copco Group “Six Demand Keys” August 2000 Capital Goods 45%Expendables and After Market 55% Industry Mining Construction Industrial Machine Investment Metal Ore Production Mining Machine Investment Infrastructure and Public Investment Industrial Production Construction Activity

54. Index Quarterly presentation - Group Handout - June 30, 2000 Index Contents Q2 Highlights Strategy Strategic Moves People Market Development Orders received, April - June Group Total Compressor Technique Construction and Mining Technique Industrial Technique Rental Service Financials Cash Flow Capital Expenditures Balance Sheet Income Statement Outlook Extra Information - Contents New Group Website Growth and Trends Margins and Earnings Taxes Inventories, Receivables and Net Rental Equipment Cash and Interest Bearing Debt Profit per Share Demand Keys