Atlas Copco Group

Q3 2012 results

October 24, 2012

Q3 - highlights

Good quarter despite softer market

Solid profitability

Orders up 1% compared with Q3 2011– Orders for equipment weakened somewhat compared to recent quarters

– Aftermarket remained on a good level

Strong cash flow

Continued strong value creation

October 24, 20122

Orders, revenues and operating margin

0%

5%

10%

15%

20%

25%

0

5 000

10 000

15 000

20 000

25 000

10 Q1 10 Q2 10 Q3 10 Q4 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3

Orders received, MSEK Revenues, MSEK Operating margin, %

October 24, 20123

Quarterly figures

Q3 - figures in summary

Orders received increased to MSEK 21 379, organic growth of 1%

Revenues up 7% to MSEK 22 094, organic growth 6%

Operating profit increased to MSEK 4 918 (4 800), a margin of 22.3% (23.1)– Includes items affecting comparability of MSEK +68 (+134). Adjusted operating

margin at 22.0% (22.5)

Profit before tax at MSEK 4 734 (4 703)

Basic earnings per share SEK 2.87 (2.96)

Operating cash flow at MSEK 4 611 (2 125)– Includes divestment of financial assets of approx. MSEK 1 400

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Orders received - local currency

October 24, 20125

A B C

September 2012

20 +4 +7

10 +13 +3

29 +3 -2

12 +13 +10

22 -2 +2

7 +24 +13

A = Share of orders received, year-to-date, %

B = Year-to-date vs. previous year, %

C = Last 3 months vs. previous year, %

100 +6 +4

Q3 - the Americas

Healthy demand in North America– Orders received increased for compressors

– Lower order intake for mining equipment

Small order growth year-on-year in South America– Lower order volumes sequentially for mining and rock

excavation equipment

October 24, 20126

A B C

September 2012 A = Share of orders received, year-to-date, %

B = Year-to-date vs. previous year, %

C = Last 3 months vs. previous year, %

20 +4 +7

10 +13 +3

Q3 - Europe and Africa/Middle East

Orders received decreased in Europe– Negative trend in most countries

– Healthy order intake for compressors

Increased order intake in Africa / Middle East – Healthy level of business for all business areas

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A B C

September 2012 A = Share of orders received, year-to-date, %

B = Year-to-date vs. previous year, %

C = Last 3 months vs. previous year, %

29 +3 -2

12 +13 +10

Q3 - Asia and Australia

Mixed development in Asia – Orders increased year-on-year, but decreased

somewhat sequentially

– Good development in South East Asia and South Korea

– China orders on good level, but slightly lower than Q2

Order growth vs. Q3 2011 in Australia– Orders declined sequentially

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A B C

September 2012 A = Share of orders received, year-to-date, %

B = Year-to-date vs. previous year, %

C = Last 3 months vs. previous year, %

22 -2 +2

7 +24 +13

Organic* growth per quarter

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

October 24, 20129

Atlas Copco Group, continuing operations

*Volume and price

Orders Orders MSEK received Revenues received Revenues2011 21 151 20 739 65 028 58 913Structural change, % +3 +3 +3 +3Currency, % -3 -2 +1 +1Price, % +2 +2 +2 +2Volume, % -1 +4 +1 +9Total, % +1 +7 +7 +152012 21 379 22 094 69 469 67 785

July - September January - September

Atlas Copco Group – sales bridge

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Atlas Copco Group

October 24, 201211

12 months until September 2012

CompressorTechnique38%

Industrial Technique

11%

ConstructionTechnique

37%

Revenues per business area

Mining and Rock ExcavationTechnique

14%

-15

-10

-5

0

5

10

15

20

25

30

-15

-10

-5

+0

+5

+10

+15

+20

+25

+30

2009 2010 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3

Organic* revenue growth: Change vs. same period previous year, %

Operating margin, %

% %

Compressor Technique

Healthy level of order intake – Improvement for gas and process

compressors

– Growth in aftermarket

Operating margin at 24.0% (24.1)– Supported by currency

Acquisition of nitrogen and oxygen generator business

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-40

-30

-20

-10

0

10

20

30

40

-40

-30

-20

-10

+0

+10

+20

+30

+40

2009 2010 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3

Organic* revenue growth: Change vs. same period previous year, %

Operating margin, %

Industrial Technique

Weaker demand for tools and assembly systems than in recent quarters

The aftermarket continued to grow

Operating margin at 21.0% (21.9)– Negatively impacted by currency

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-30

-20

-10

0

10

20

30

40

50

-30

-20

-10

+0

+10

+20

+30

+40

+50

2009 2010 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3

Organic* revenue growth: Change vs. same period previous year, %

Operating margin, %

% %

Mining and Rock Excavation Technique

Lower order volumes for mining and rock excavation equipment

Strong demand for service and parts

Customers cautious in replenishing consumables inventory

Operating margin at 24.5% (25.6)– Negatively impacted by currency

October 24, 201214

-20

-15

-10

-5

0

5

10

15

20

-40

-30

-20

-10

+0

+10

+20

+30

+40

2009 2010 11 Q1 11 Q2 11 Q3 11 Q4 12 Q1 12 Q2 12 Q3

Organic* revenue growth: Change vs. same period previous year, %

Operating margin, %

% %

Construction Technique

Weaker demand for equipment– Weak Europe, good North America

Healthy aftermarket

Operating margin at 11.5% (11.8)– MSEK 30 in restructuring costs in Q3

2011 – adjusted margin 12.8%

Reorganization of production in Karlskrona affects 78 employees

October 24, 201215

MSEK 2012 2011 %

Orders received 21 379 21 151 +1

Revenues 22 094 20 739 +7

Operating profit 4 918 4 800 +2

– as a percentage of revenues 22.3 23.1

Profit before tax 4 734 4 703 +1

– as a percentage of revenues 21.4 22.7

Profit for the period 3 486 3 601 -3

Basic earnings per share, SEK 2.87 2.96

Return on capital employed, % 37 36

July - September

Group total

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July – September 2012 vs. 2011

Profit bridge

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July – September 2012 vs. 2011

Q3 2012 Organic Growth Currency One-time items Share related Q3 2011MSEK Price/Volume Acq./Div. LTI-programsAtlas Copco GroupRevenues 22 094 1 315 -530 570 0 20 739EBIT 4 918 309 -180 185 -196 4 800% 22.3% 23.5% 23.1%

Q3 2012 Organic Growth Currency One-time items Q3 2011MSEK Price/Volume Acq./Div.Compressor TechniqueRevenues 8 599 395 -240 180 8 264EBIT 2 065 55 20 0 1 990% 24.0% 13.9% 24.1%Industrial TechniqueRevenues 2 280 234 -75 305 1 816EBIT 479 51 -45 75 398% 21.0% 21.8% 21.9%Mining and Rock Excavation TechniqueRevenues 8 278 671 -105 70 7 642EBIT 2 031 202 -105 -25 1 959% 24.5% 30.1% 25.6%Construction TechniqueRevenues 3 074 -118 -115 15 3 292EBIT 355 -35 -35 35 390% 11.5% 29.7% 11.8%

Profit bridge – by business area

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July – September 2012 vs. 2011

MSEK Sep. 30, 2012 Dec. 31, 2011 Sept. 30, 2011

Intangible assets 15 718 15 352 13 886

Rental equipment 1 900 2 117 2 103

Other property, plant and equipment 6 723 6 538 6 215

Other non-current assets 3 738 3 983 4 161

Inventories 18 642 17 579 16 961

Receivables 21 551 21 996 20 457

Current financial assets 1 395 1 773 1 625

Cash and cash equivalents 8 772 5 716 6 520

Assets classified as held for sale 1 55 48TOTAL ASSETS 78 440 75 109 71 976

Total equity 31 386 28 839 26 525

Interest-bearing liabilities 22 522 21 939 22 537

Non-interest-bearing liabilities 24 532 24 331 22 914TOTAL EQUITY AND LIABILITIES 78 440 75 109 71 976

Balance sheet

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MSEK 2012 2011Operating cash surplus 5 333 5 132 of which depreciation added back 664 644Net financial items -164 -159Taxes paid -1 111 -857Change in working capital -106 -925Increase in rental equipment, net -53 -330Cash flows from operating activities 3 899 2 861Investments of property, plant & eq., net -350 -399Other investments, net 1 062 -337Cash flow from investments 712 -736Operating cash flow 4 611 2 125Company acquisitions/ divestments -349 -490

July - September

Cash flow

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Near-term outlook

The overall demand for Atlas Copco’s products and services is expected to decrease somewhat.

October 24, 201221

Committed tosustainable productivity.

October 24, 201223

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 and adversely affected by other factors such as the effect of economic conditions, exchange-rate and interest-rate movements, political risks, the impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.”

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