1. July 17, 2006 www.atlascopco.com1 Atlas Copco Group Q2 Results July 17, 2006

2. July 17, 2006 www.atlascopco.com2 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

3. July 17, 2006 www.atlascopco.com3 Q2 - Highlights  Another record quarter  Strong growth in all regions and most customer segments –Negative development in motor vehicle industry  All business areas improved sales, profit and margins  Strategic acquisitions –Agreements to acquire two compressor businesses with a total turnover over BSEK 2.2.  The divestment process of the construction equipment rental business continues and is expected to be finalized in the third quarter

4. July 17, 2006 www.atlascopco.com4 Q2 - Figures in summary  Orders received up 19%, +13% in volume  Revenues up 18% to MSEK 15 408, up 12% in volume  Operating profit up 41% to MSEK 3 163, a margin of 20.5% (17.2)  Profit before tax at MSEK 2 926 (2 170), a margin of 19.0% (16.6)  Basic earnings per share were SEK 3.11 (2.36), up 32%  Operating cash flow totaled MSEK 799 (955)  ROCE at 32% (25) Including discontinued operations

5. July 17, 2006 www.atlascopco.com5 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

6. July 17, 2006 www.atlascopco.com6 Orders received - Local currency Group total +26% YTD + 18% last 3 months Group excluding Rental Service +28% YTD + 19 last 3 months (Structural change +2% YTD) June 2006 ABC A =Portion of sales, last 12 months, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, % 5+12+16 32+13+8 8+54+45 14+35+36 4+20+30 37+22+16 +29+20 Continuing operations

7. July 17, 2006 www.atlascopco.com7 Q2 - The Americas  Continued strength in North America –Continued investments from most manufacturing and process industries, with the exception of the motor vehicle industry –Improved demand from construction industry –High activity level in the mining industry  Solid demand in South America June 2006 ABC A =Portion of sales, last 12 months, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, % 5+12+16 37+22+16 +29+20 Continuing operations

8. July 17, 2006 www.atlascopco.com8 Q2 - Europe and Africa/Middle East  Robust demand in Europe –Improved demand for industrial equipment, with the exception of advanced assembly tools for the motor vehicle industry –The construction demand increased –Double digit growth in Eastern Europe and in many major markets in Western Europe  Very positive development in the Africa / Middle East region June 2006 ABC A =Portion of sales, last 12 months, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, % 32+13+8 8+54+45

9. July 17, 2006 www.atlascopco.com9 Q2 - Asia and Australia  Continued strong growth in Asia –Demand from most customers segments improved –All major markets developed well  Mining particularly strong in Australia June 2006 ABC A =Portion of sales, last 12 months, % B =Year-to-date vs. prev. year, % C =Last 3 months vs. prev. year, % 14+35+36 4+20+30

10. July 17, 2006 www.atlascopco.com10 Volume Growth per Quarter  Change in orders received in % vs. same Quarter previous year Including discontinued operations

11. July 17, 2006 www.atlascopco.com11 Atlas Copco Group – Sales Bridge

12. July 17, 2006 www.atlascopco.com12 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

13. July 17, 2006 www.atlascopco.com13 Atlas Copco Group Operating Profit and Return On Capital Employed (ROCE) by Business Areas

14. July 17, 2006 www.atlascopco.com14 Compressor Technique  Very strong order growth –Strong order intake for all types of compressors –Highest in Asia and North America, robust in Western Europe  Steady positive development of aftermarket  Strategic acquisitions of BeaconMedaes and ABAC –Total turnover over BSEK 2.2.  Operating profit up 26%. Margin at 20% –Positive effect from volume and price

15. July 17, 2006 www.atlascopco.com15 Compressor Technique  Acquisition of BeaconMedaes –Strong presence in the United States and Great Britain –A solutions provider, predominantly of medical air systems and medical utility delivery systems for hospitals.  Medical air compressors, vacuum systems and pipeline components. The products, for example, supply breathing air for hospitals and compressed air to drive surgical tools. –2005 turnover approx. MSEK 720 with around 7% operating margin –386 employees –Purchase price approx. MSEK 700

16. July 17, 2006 www.atlascopco.com16 Compressor Technique  Acquisition of the industrial division of ABAC –Manufacturing in Italy, Germany and the United States –Complementary product portfolio and a wide international distribution network. –Multi-brand strategy –Turnover approx. BSEK 1.5 with around 10% operating margin –650 employees –Purchase price approx. BSEK 1.1

17. July 17, 2006 www.atlascopco.com17 Compressor Technique  Operating margins restated (IFRS) from 2004

18. July 17, 2006 www.atlascopco.com18 Construction and Mining Technique  Strong demand from both mining and construction  Order volume up 15% –17th consecutive quarter with volume growth –Strong growth in all regions  Record operating profit, up 49%  Investment in increased manufacturing for construction tools  Launch of new range of drill rigs for tunneling applications

19. July 17, 2006 www.atlascopco.com19 Construction and Mining Technique  Operating margins restated (IFRS) from 2004

20. July 17, 2006 www.atlascopco.com20 Industrial Technique  Strong sales to general industry  Weaker demand from the motor vehicle industry –Notably in Europe, North and South America  Good development of the aftermarket business  Increased revenues, operating profit and margin

21. July 17, 2006 www.atlascopco.com21 Industrial Technique  Operating margins restated (IFRS) from 2004

22. July 17, 2006 www.atlascopco.com22 Rental Service  Rental revenues increased 23% in USD –Price +6%, volume +17%  Fleet utilization at 72% –Increased investments in equipment to support demand and further improve fleet quality  Record operating margin at 27.6% Including discontinued operations

23. July 17, 2006 www.atlascopco.com23 Rental Service  Operating margins restated (IFRS) from 2004 Rental Revenue Volume Development, incl. discontinued operations

24. July 17, 2006 www.atlascopco.com24 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

25. July 17, 2006 www.atlascopco.com25 Group Total

26. July 17, 2006 www.atlascopco.com26 Balance Sheet Including discontinued operations

27. July 17, 2006 www.atlascopco.com27 Capital Structure Adjusted for IFRS, but including discontinued operations Net Debt/Equity

28. July 17, 2006 www.atlascopco.com28 Cash Flow

29. July 17, 2006 www.atlascopco.com29 Capital Expenditures 2005 MSEK Quarterly 12 months Net rental fleet investment = MSEK 5 184 2004200220032001 2006 Tangible Fixed Assets

30. July 17, 2006 www.atlascopco.com30 Contents  Q2 Business Highlights  Market Development  Business Areas  Financials  Outlook

31. July 17, 2006 www.atlascopco.com31 Near-term Outlook The demand for Atlas Copco’s products and services, from most customer segments such as mining, infrastructure and other non- residential construction, the manufacturing and process industries, is expected to remain at the current high level.

32. 32July 17, 2006 www.atlascopco.com

33. 33 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.”