Atlas Copco Group

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Atlas Copco Group

• Q3 Results
• October 24, 2007

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Contents

• Q3 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Q3 - Highlights

• Strong order and revenue growth continue
• Solid market conditions
• Excellent growth in BRIC countries
• Organic order growth 15
• Both capital equipment and aftermarket sales show
  strength
• All-time high operating profit
• Strong cash flow generation
• Acquisition of Mafi-Trench expands offer to oil
  and gas industry

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Q3 - Figures in summary

• Revenues up 31 to MSEK 16 431
• 19 organic growth
• Operating profit up 36 to MSEK 3 127
• Operating margin at record 19.0 (18.4)
• Profit before tax at MSEK 2 708 (2 081)
• Profit from continuing operations up 28 to MSEK
  1 890
• Earnings per share continuing operations SEK 1.54
  (1.17)
• Operating cash flow, continuing operations, MSEK
  1 586 (916)

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Contents

• Q3 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Orders received - Local currency
Group total 27 YTD, 29 last 3
months (Structural change 9 YTD, 14 last 3
months)
40 25 21
19 33 40
19 20 26
10 39 33
7 46 53
5 28 38
September 2007
A Portion of sales, Year-to-date,
B Year-to-date vs. prev. year,
C Last 3 months vs. prev. year,
A B C
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Q3 - The Americas

• Solid growth in North America
• Good demand from most customer segments within
  mining, process, and manufacturing industries
• Weaker demand from the motor vehicle industry and
  parts of the construction market
• Continued good demand from all customer segments
  in South America
• Strong growth in Brazil

19 20 26
7 46 53
September 2007
A Portion of sales, Year-to-date,
B Year-to-date vs. prev. year,
C Last 3 months vs. prev. year,
A B C
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Q3 - Europe and Africa/Middle East

• Robust demand in Europe
• Good development within the manufacturing and
  process segments
• Demand from construction industry softened in
  some markets
• Best growth found in Eastern Europe and the
  Nordic region
• Positive development in the Africa / Middle East
  region

40 25 21
10 39 33
September 2007
A Portion of sales, Year-to-date,
B Year-to-date vs. prev. year,
C Last 3 months vs. prev. year,
A B C
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Q3 - Asia and Australia

• Asia continues to deliver
• Strong demand for all types of equipment in most
  parts of the region
• China and India recorded even higher growth than
  in recent quarters
• High demand from most customer segments in
  Australia

19 33 40
5 28 38
September 2007
A Portion of sales, Year-to-date,
B Year-to-date vs. prev. year,
C Last 3 months vs. prev. year,
A B C
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Organic Growth per Quarter
Atlas Copco Group, continuing operations

• Change in orders received in vs. same Quarter
  previous year

Volume and price
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Atlas Copco Group Sales Bridge
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Contents

• Q3 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Atlas Copco Group
Operating Profit and Return On Capital Employed
(ROCE) by Business Area
including discontinued operations
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Compressor Technique

• Continued strong development for all product
  areas
• Organic order growth 11 vs very strong previous
  year
• All regions showed good growth
• Record operating profit at MSEK 1 801
• Includes MSEK 78 gain from sale of rental assets
  in Australia
• Underlying margin very strong considering
  currency and acquisition effects
• Acquisition of Mafi-Trench finalized on August 1

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October 24, 2007, www.atlascopco.com
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Compressor Technique
Volume and price
Quarterly operating margins include Prime Energy
from Q1 2006.
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Construction and Mining Technique

• Continued strong demand, particularly from mining
  industry
• Organic order growth 21
• 22nd consecutive quarter with volume growth
• Operating profit up 50, margin at 16.9
• 19 margin for comparable units
• Low Dynapac margin due to seasonal variances as
  well as production disturbances

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Dynapac

• Market development and order growth is good and
  in line with expectations
• Production disturbances primarily related to
  Germany and one business line
• New product allocation between factories
• Move from station-based assembly to line-assembly
• Introduction of revamped paver-line

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Construction and Mining Technique
Volume and price
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Industrial Technique

• Continued very strong development in general
  industry and resumed order growth in the motor
  vehicle industry
• 13 organic order growth in total
• Operating profit up 10, margin at 20.8
• Negatively affected by restructuring costs
• Suggested move of assembly operations from UK to
  Hungary
• New advanced battery tool introduced

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Industrial Technique
Volume and price
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Contents

• Q3 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Group Total
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Balance Sheet
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Capital Structure
Net Debt/EBITDA
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Cash Flow
Continuing operations
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Contents

• Q3 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Near-term Outlook

• The demand for Atlas Copcos products and
  services from most customer segments and regions
  is expected to remain at the current high level.
• The positive outlook includes the main part of
  the construction segment, while construction
  related to housing is expected to slow down,
  primarily in North America.

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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 major
  customer credit losses.