April 27, 2005 1

Atlas Copco Group

Q1 Results

April 27, 2005

April 27, 2005 2

Contents

Q1 Business Highlights

Market Development

Business Areas

Financials

Outlook

April 27, 2005 3

Q1 - Highlights

Strong growth

Record profit margins

Strong performance from acquired units

Continued improvement in Rental Service

Price increases and efficiency measures offset higher component and energy costs

Acquisitions strengthen core businesses within CT, CMT and IT

Divestment of professional electric tool business on January 3, 2005

April 27, 2005 4

Q1 - Figures in summary

Order received up 17%, volume up 8%

Revenues reached MSEK 11 168 (9 595), up 10% in volume

Operating profit at MSEK 1 737, a margin of 15.6% (13.8)– Capital gain on professional electric tools divestment deferred

– 2004 restated for IFRS

Profit after financial items up 35% to MSEK 1 665 (1 231)

Earnings per share increased to SEK 5.55 (4.38)

Operating cash flow at MSEK 685 (862)

ROCE at 23%

April 27, 2005 5

Contents

Q1 Business Highlights

Market Development

Business Areas

Financials

Outlook

April 27, 2005 6

March 2005

Orders received - Local currency

Group total +8% YTD, +21 excl. discontinued operations(Structural change +10% YTD, excl. discontinued operations)

B CA

+3 +2739

+79 +835

0 +1034

+26 +286

+30 +404

+12 +1412

A= Portion of Group sales last 12 months, %B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

April 27, 2005 7

Q1 - The Americas

Strong development in North America– Increased demand from manufacturing and

process industries

– Non-residential construction activity improved

– Very good demand from the mining industry

Continued strong demand in South America

+3 +2739

+79 +835

B CAA= Portion of Group sales last 12 months, %B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

March 2005

April 27, 2005 8

Q1 - Europe and Africa/Middle East

Demand in Europe increased– Increased investments in compressed air

equipment and industrial tools in the manufacturing and process industries

– Improved demand for construction equipment, still strong for mining equipment

– Best development in Eastern Europe, the Nordic countries, Great Britain and Spain

Overall positive demand development in Africa / Middle East

B CAA= Portion of Group sales last 12 months, %B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

0 +1034

+26 +286

March 2005

April 27, 2005 9

Q1 - Asia and Australia

Continued growth in Asia

– Healthy demand for standard industrial compressors

– Lower demand from large projects in China

– Strong performance in India, South East Asia and Japan.

Strong growth in Australia, primarily due to mining demand

B CAA= Portion of Group sales last 12 months, %B= Year-to-date vs prev. year, % C= B, excl. discontinued operations

+30 +404

+12 +1412

March 2005

April 27, 2005 10

Volume Growth

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per Quarter

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

April 27, 2005 11

Group Total

Sales Bridge

January – March

MSEK

Orders Received

Revenues

2004 reported 11 577 10 858 Discontinued operations -1 299 -1 263

2004 10 278 9 595 Structural change, % +10 +7 Currency, % -4 -4 Price, % +3 +3 Volume, % +8 +10 Total, % +17 +16 2005 11 990 11 168

April 27, 2005 12

Contents

Q1 Business Highlights

Market Development

Business Areas

Financials

Outlook

April 27, 2005 13

Compressor Technique

Record level of order received– Volume growth 7%

– Positive sales development in the Americas

– Strong growth for portable compressors and specialty rental business

– Demand for stationary industrial compressors and related aftermarket business increased further

– Breakthrough order from liquid natural gas market

Improved operating margin– Positive volume effect and price increases more

than offset the negative currency impact and higher components costs

April 27, 2005 14

Compressor Technique

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Volume growth: Change in revenues vs. same quarter previous year, %

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Operating margins restated (IFRS) from 2004

April 27, 2005 15

Construction & Mining Technique

Orders received up 63%

– 17% volume growth for comparable units

– Continued strong demand from mining industry and improved demand for light construction equipment

– Strong contribution from recently acquired businesses

Operating profit improved

Acquisition of Lifton, a manufacturer of hydraulic handheld breaker equipment

April 27, 2005 16

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Volume growth: Change in revenues vs. same quarter previous year, %

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Construction & Mining Technique

Operating margins restated (IFRS) from 2004

April 27, 2005 17

Rental Service

Recovery in non-residential construction activity continued

Rental revenues increased 13% in USD– Price +10%, volume +3%

Fleet utilization at record level

Profitability improved significantly– Record operating margin in a first quarter

– Return on total capital employed above the Group’s WACC

April 27, 2005 18

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Volume growth: Change in rental revenue vs. same quarter previous year, %

Quarterly operating margin, % (Business Area)

Rental Service

Rental Revenue Volume Development

Operating margins restated (IFRS) from 2004

April 27, 2005 19

Industrial Technique

Order volume up 9% for industrial tools– Good demand from all major customer segments

– Strong development in North America

Record operating margin

Acquisitions of specialized tightening solutions businesses

Divestment of electric tools business finalized on January 3, 2005.

April 27, 2005 20

Industrial Technique

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Volume growth: Change in revenues vs. same quarter previous year, %

Quarterly operating margin, %

Operating margins restated (IFRS) from 2004

April 27, 2005 21

Contents

Q1 Business Highlights

Market Development

Business Areas

Financials

Outlook

April 27, 2005 22

Income Statement

January – March Change MSEK 2005 2004 %

Orders received 11 990 10 278 +17

Revenues 11 168 9 595 +16

Operating profit 1 737 1 321 +31 – as a percentage of revenues 15.6 13.8

Profit after financial items 1 665 1 231 +35 – as a percentage of revenues 14.9 12.8 Net profit from continuing operations 1 167 875 +33 Net profit from discontinued operations - 47 Net profit 1 167 922 +27 Earnings per share, SEK 5.55 4.38 1) +27 Equity capital per share, SEK 118 104 Return on capital employed, % 23 1) 1) Including discontinued operations. Adjusted for IFRS

April 27, 2005 23

Balance Sheet

Adjusted for IFRS

MSEK Mar. 31, 2005 Mar. 31, 2004 Property, plant and equipment Rental equipment 10 022 20% 9 425 19% Other property, plant and equipment 3 923 8% 3 535 7% Intangible assets 9 248 18% 8 644 17% Other fixed assets 1 790 4% 2 051 4% Inventories 6 447 13% 5 187 10% Receivables 11 110 22% 9 616 19% Short-term investments 287 1% 312 1% Cash and cash equivalents 7 316 15% 4 553 9% Assets held for sale - 6 087 12% Total assets 50 143 100% 49 410 100% Total Equity 24 769 49% 21 766 44% Interest-bearing loans and borrowings 10 531 21% 13 111 27% Non-interest-bearing loans and borrowings 14 843 30% 12 162 25% Liabilities held for sale - 2 371 5% Total shareholders’ equity and liabilities 50 143 100% 49 410 100%

April 27, 2005 24

Cash Flow

January – March MSEK 2005 2004

Operating cash surplus after tax 1 993 1 438 of which depreciation added back 718 674 Change in working capital -454 -81

Cash flow from operations 1 539 1 357 Investments in tangible fixed assets -1 336 -820 Sale of tangible fixed assets 566 424 Other investments, net -84 -100 Cash flow from investments -854 -495 Operating cash flow 685 862 Company acquisitions / divestments 4 231 -10 Cash flow from financing -381 -179 Net cash flow, after financing 4 535 673

Adjusted for IFRS

April 27, 2005 25

Capital Expenditures

in Tangible Fixed Assets

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Machinery & buildings, quarterly Net, Rental Equipment, quarterlyNet. Rental Eq.+Mach.& buildings, 12 months Net, Rental Equipment, 12 monthsNet. Rental Eq.+Mach.& buildings, quarterly

2005

MSEK

Quarterly 12 months

Net rental fleet investment = MSEK 2 421

20042002 20032001

April 27, 2005 26

Dividend and Redemption

1886

4192

1100 1153 1205

6078

1572

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2000 2001 2002 2003 2004

Dividend per share Redemption of shares Line 4

* Proposed by the Board of Directors

*

Average annual dividend growth

(ordinary dividend) 13,6%

April 27, 2005 27

Contents

Q1 Business Highlights

Market Development

Business Areas

Financials

Outlook

April 27, 2005 28

Near-term Outlook

The demand for Atlas Copco’s products and services is expected to remain at current high level.

Demand from manufacturing and process industries is expected to stay favorable in most markets. Activity in the construction industry is expected to continue to increase somewhat in North America and in most developing countries. Demand from the mining industry is expected to remain strong.

April 27, 2005 29

April 27, 2005 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.”