The Atlas Copco Group

Presentation 2005
Atlas Copco in Brief

 Founded in 1873

 Leading edge of technology

 Strong customer focus

 Represented worldwide by
20 brands

 Approximately 25 000 employees

 Revenues 49 billion SEK

 Listed in Stockholm
Products 1873—1910
Start of Present Business
Earliest design of an Atlas air tool—drawn in 1893
Businesses in the 1950s

Mining and Construction Compressors

Service Tools
Historical Milestones

“Swedish method” led

First pneumatic to rapid international
tool produced expansion

1890 First rock drill

1946
Three business
produced areas formed

1905 1968

1873 1917 1956 1999

AB Atlas, Focus on Atlas Copco new A fourth business
manufacturer diesel engines name focusing on area, Rental Service,
of locomotives, compressed air was added
was founded
1904
First air
compressor
produced
Main Acquisitions

Chicago Pneumatic Tools 1987

Prime Service 1997

Rental Service Corporation 1999

Drilling Solutions 2004

Atlas Copco Worldwide

Sales and service Production sites

Atlas Copco Worldwide
Rental stores in the United States

Rental Stores
2004 Revenues
by Customer Category

Others
10%
Services 6%

33% Construction
Mining 12%

Process 13%

26%
Manufacturing
The Atlas Copco Organization
Board of Directors

President and CEO

Executive Group Management and Corporate Functions

Compressor Industrial Construction and

Rental Service
Technique Technique Mining Technique

Airtec Atlas Copco Tools Underground Rock Rental Service

and Assembly Systems Excavation Corporation
Industrial Air
Chicago Pneumatic Surface Drilling
Oil-free Air Equipment
Portable Air Drilling Solutions
Gas and Process Rocktec
Secoroc
Construction Tools
Craelius

Product Companies and Customer Centers

The Group’s Businesses

Mining and Construction Compressors

Rental Tools
Compressor Technique
Compressor Technique
Industrial Compressors
Compressor Technique
Portable Compressors
Compressor Technique
Gas and Process Compressors
Compressor Technique
Quality Air Solutions™
Compressor Technique
Portable and Stationary Generators
Compressor Technique
Industrial Rental Services
Industrial Technique
Industrial Technique
Industrial Power Tools
Industrial Technique
Assembly Systems
Construction and Mining Technique
Construction and Mining Technique
Underground Rock Drilling and Reinforcement
Front End Loaders and Mine Trucks
Construction and Mining Technique
Surface Drilling Equipment
Construction and Mining Technique
Rotary and Deephole
Construction and Mining Technique
Rock Drilling Tools
Construction and Mining Technique
Geotechnical Drilling Equipment
Construction and Mining Technique
Construction Tools
Rental Service
Rental Service
Construction and Industrial Customers
Rental Service
Energy Customers
Aftermarket Commitment
Support Structure

Distribution Centers Internal Bank

Atlas Copco Advanced Service and

Administration Provider, ASAP
First in Mind—First in ChoiceTM

First in Choice…

First in Mind…
Values

Interaction Commitment Innovation

Strategic Directions

Growth Innovations and Use-of-Products

Continuous
Improvements
Multi-Brand
Main Assets

Products

Customers

People
Social—Environmental—Economic

ISO 14 001
82%

People...
Products...
Services...

...in a Sustainable Environment

A Good Corporate Citizen

A Caring Employer

A Socially, Ethically
and Environmentally
Conscious Group
Competence Development
Financial Targets
Atlas Copco Group

Return on
revenue 8%
Growth

15%

Total cost
of capital
(WACC)

Capital turnover
2004 Revenues
by Geographical Region

South America
4%
Africa/Middle East 6%

Asia/Australia 15%
40% North America

Europe 35%

BSEK 49
2004 Results
Atlas Copco Group

MSEK
Construction and 60 000
Mining Technique
Compressor
21% Technique 50 000

36% 40 000

30 000

22% 20 000
Industrial *
Technique 10 000 13.7% 12.0% 11.1% 11.9% 13.8%
21% Rental
Service 0
2000 2001 2002 2003 2004

Revenues Operating profit

*Excl. goodwill impairment charge

2004 Results
Compressor Technique

MSEK
Construction and 18 000
Mining Technique
Compressor 16 000
21% Technique 14 000
36% 12 000
10 000
8 000
22% 6 000
19.0% 18.8% 18.5%
Industrial 4 000 18.6% 18.5%
Technique 2 000
21% Rental
Service 0
2000 2001 2002 2003 2004

Revenues Operating profit

2004 Results
Industrial Technique

MSEK
Construction and 18 000
Mining Technique
Compressor 16 000
21% Technique 14 000
36% 12 000
10 000
8 000
22% 6 000
Industrial 4 000
Technique 2 000 10.8% 9.3% 12.0%
21% Rental 9.1% 10.0%
Service 0
2000 2001 2002 2003 2004

Revenues Operating profit

2004 Results
Construction and Mining Technique

MSEK
Construction and 18 000
Mining Technique
Compressor 16 000
21% Technique 14 000
36% 12 000
10 000
8 000
22% 6 000
Industrial 4 000
Technique 2 000 10.1%
21% Rental 9.2% 10.1% 8.9% 8.6%
Service 0
2000 2001 2002 2003 2004

Revenues Operating profit

2004 Results
Rental Service

MSEK
Construction and 18 000
Mining Technique
Compressor 16 000
21% Technique 14 000
36% 12 000
10 000
8 000
22% 6 000
Industrial 4 000
Technique 13.3% 14.6%
21% Rental 2 000 8.1% * 8.0%
5.3%
Service 0
2000 2001 2002 2003 2004

Revenues Operating profit

*Excl. goodwill impairment charge