Atlas Copco

September 12, 2007

Ronnie Leten, Business Area President, Compressor Technique

2

Atlas Copco in a Snapshot

A world leading provider of industrial productivity solutions

Three focused, profitable and strong industrial businesses– The products and services range from compressed air and gas

equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental

Revenues of BSEK 55 (BEUR 6), operating margin of 18.6% and high return on capital employed

Over 30 000 employees

3

Businesses and Market Positions

Compressor

Technique

Industrial Technique

Construction and Mining Technique

11-2

1

4

Atlas Copco –

Our

Genes

Leading market positions

+ Global presence – primarily direct sales

+ Patented product development

+ Standardized products and processes

+ Application knowledge

+ Low capital need

+ Efficient production and logistics

+ Aftermarket focus

= Strong growth, high operating margins and high capital turnover

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Worldwide Presence

Top 3 markets1. USA2. China3. Germany Countries covered by Atlas Copco’s customer centers

Manufacturing facilities

23%

40%

10%

20%

7%

Share of orders received June 2007

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Atlas CopcoRevenues and operating margin

0

10 000

20 000

30 000

40 000

50 000

60 000

2002 2003 2004 2005 2006 June2007

0

5

10

15

20

25

30

Revenues, MSEK Operating margin, %

MSEK %

12 month figures, 2002 – 2004 pro forma, excluding divested businesses.

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Oil-free Air

Industrial Air

Portable Air

Specialty Rental

Gas and Process

Airtec

The Atlas Copco Organization

Executive Group Management and Corporate Functions

Compressor

Technique

Construction and Mining Technique

Industrial

Technique

Underground Rock Excavation Surface Drilling Equipment Drilling SolutionsSecorocConstruction ToolsRoad Construction Equipment Geotechnical Drilling and ExplorationRocktec

Atlas Copco Tools and Assembly Systems Motor Vehicle Industry

Atlas Copco Tools and Assembly Systems General Industry

Chicago Pneumatic Industrial

Chicago Pneumatic Vehicle Service

Tooltec

President and CEO

Board of Directors

Revenues 28 404EBIT margin 20.8%ROCE 66%

Revenues 21 012EBIT margin 17.2%ROCE 35%

Revenues 6 440EBIT margin 22.2%ROCE 60%

Key figures represent last 12 months until June 2007

Compressor Technique

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Compressor Technique in brief

Compressed Air Market

Performance – Compressor Technique

Strategy – Compressor Technique

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Compressor Technique

11

Market Position

World leader in compressed air products and solutions

Global coverage with own resources in salesand aftermarket support

Technology and cost leadership

– Focused R&D investments

– High volumes and focus on core activities

Advanced global logistics

Growth by strong market penetration and presence

Continuous introduction of new and innovative products and services

Focus on dedicated customer segments

12

Sales and Results

North America15%

Europe44%

Africa/ Middle East

8%

27%6%

Asia/ Australia

South America

18,8 18,5 18,7 19,520,820,4

0

5 000

10 000

15 000

20 000

25 000

30 000

2002 2003 2004 2005 2006 June2007

0

5

10

15

20

25

30

Revenues, MSEK Operating margin, %

MSEK %

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Our BusinessesShare of Revenues

Compressed Air

Equipment

59%

Solutions

&

14

Our Businesses

Aftermarket 26%

Gas Compressors 5%

15

Our Businesses

Generators

10%

Specialty Rental

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Our Vision

byoffering customers best value

First in Mind─First in Choice®

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Compressor Technique in brief

Compressed Air Market

Performance – Compressor Technique

Strategy – Compressor Technique

18

The Compressed Air Market

TOTAL: ~ BSEK 80

AMERICAS EMEA FAR EAST

Equipment and Aftermarket

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Trends in the Compressor Market

TOTAL SOLUTION PROVIDER

FOCUS ON ENERGY SAVING

LIFE CYCLE COST

20

Life Cycle Cost

Energy

Maintenance & Installation

Compressor

10%

20% 70%

Savings Potential

Durability / UptimeSolutions

Global Support

21

Technology Trends

SIZE

piston screw turbo

Air Compressors

22

Competitors

Kaeser, Germany

Gardner-Denver, USA

Sullair, USA

Ingersoll-Rand, USA

Hitachi, Japan

CompAir, UK

Parker Hannifin, USA

+ many regional / local, niche competitors

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Compressor Technique in brief

Compressed Air Market

Performance – Compressor Technique

Strategy – Compressor Technique

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Quarterly Volume Growth and Operating Margin

-10

-5

0

5

10

15

20

25

-10

-5

0

5

10

15

20

2501

Q1

01 Q

201

Q3

01 Q

402

Q1

02 Q

202

Q3

02 Q

403

Q1

03 Q

203

Q3

03 Q

404

Q1

04 Q

204

Q3

04 Q

405

Q1

05 Q

205

Q3

05 Q

406

Q1

06 Q

206

Q3

06 Q

407

Q1

07 Q

207

Q3

07 Q

4

Revenue volume growth: Change vs. same quarter previous year, %Quarterly operating margin, %

25

Operating profit up 27 %, positive effect from volume and priceInvestment in increased production capacity Acquisitions: ABAC, a manufacturer of piston and screw compressors for the small and medium sized industrial market, and for the automotive aftermarket; and MAFI-TRENCH, a manufacturer of expanders for the Hydrocarbon market

Demand from most customer segments is at high level.

Strong growth in all regions for equipment and aftermarket sales

Q2 2007 Highlights

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Compressor Technique in brief

Compressed Air Market

Performance – Compressor Technique

Strategy – Compressor Technique

27

Strategy

Capitalize on strong market presence– Develop new businesses– Aftermarket

Focused markets

Focused segments

Multi-branding

Global logistics and manufacturing strategy

Innovative product development

Acquisitions

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Compressed Air Treatment

Portable Generators

Focused Segments

Aftermarket

Specialty Rental

Air Compressors

Our Business

29

Develop New Businesses

Low pressure

Airnet

Nitrogen

30

The Driving Principles for Profitable Growth in the Aftermarket

COMPETITIVE PARTS

AND SERVICES

INCREASE

THE 1 / 1 RATIO

ENERGY

SERVICES

CLIMBING THE

CUSTOMER LADDER

ProductsPeople Presence Process

DRIVING EFFICIENCY OF OPERATIONS

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Climbing the Customer Value Ladder

Ad-hocmaintenance

Maintenance agreements

Monitoring

Air Network services

Spare partsfix it

keep fit

optimize

32

Focused Segments

Trains

Marine

CNG

33

Focused Segments

Medical Air LNG

Quality Air Solutions

34

ALASKA

TOP DISTRIBUTORS PRODUCTION FACILITIESCUSTOMER CENTERSRENTAL STORES

Tide-Air

CT Rock Hill

Comptec

Mafi-Trench

Focused Markets -

USA

35

Differentiated offer / position

Dedicated channels

Better territory coverage

Business coordinated

Synergies

Multi-branding

36

Manufacturing and Service Centers

Global manufacturing strategy

Global design platform strategy

Global sourcing

Regional Manufacturing Plants

Regional Logistics Centers

37

Understandingcustomer applications

Focus on energy efficiency

Oil-free Air solutions

Extending the offer

Product Development

Vitality Index Industrial Compressors< 6 years

> 6 years

82 85

24 18 15

76

0

20

40

60

80

100

2002 2004 2006

38

where design, innovation

and functionality

meet

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Summary

Continuous growth

Strong product development portfolio

Focus on customer application

Expansion in key growth areas

Integration new acquisitions

Investment in core component manufacturing

Material price levels

Currency developments

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We are committed to your superior productivity through

interaction and innovation.

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