Atlas Copco Group

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Atlas Copco Group

• Q2 Results
• July 17, 2009

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Contents

• Q2 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Q2 - Highlights

• Demand remained low in all regions and for most
  types of equipment
• Order intake significantly down compared to a
  strong Q2 2008
• Better sentiment within mining and cancellations
  have stopped
• Sales of aftermarket products and services doing
  well
• Capacity and cost reductions continued in the
  quarter
• Functional costs are coming down
• Employee reduction of 1 600 in the quarter 5
  440 since September 2008
• Strong operating cash flow at MSEK 2 492 (396)
• Inventory reductions accelerated

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Q2 - Figures in summary

• -37 organic order intake
• Revenues of MSEK 16 155 27 organic decline
• Operating profit at MSEK 2 066 (3 630)
• Including restructuring costs of MSEK 259
• MSEK 400 in positive currency effect compared to
  last year
• Adjusted for non-recurring items, operating
  margin at 14.4
• Profit before tax at MSEK 1 943 (3 354)
• Earnings per share SEK 1.20 (2.01)
• Operating cash flow MSEK 2 492 (396)

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Contents

• Q2 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Orders received - Local currency
Group total -37 YTD (-35 excl. cancellations),
-37 last 3 months (Structural change 0 YTD, 0
last 3 months)
June 2009
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Q2 - The Americas

• Continued decline in North America
• Weak demand from all customer segments
• Stable aftermarket
• Sales remained low in South America
• Construction segment still better than mining

June 2009
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Q2 - Europe and Africa/Middle East

• Weak demand from most customer segments across
  Europe
• Sales relatively better in Italy and the Nordic
  countries
• Substantial decline in Russia
• Good development for light construction equipment
  in Eastern Europe
• Order intake down in Africa / Middle East
  compared to strong previous year
• Good demand for industrial equipment in Northern
  Africa

June 2009
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Q2 - Asia and Australia

• Healthy level of demand in Asia
• Orders down compared to record Q2 2008
• Good demand for construction equipment and small
  compressors in China
• Sales were relatively good in Australia but still
  below previous year
• Somewhat better demand for mining equipment

June 2009
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Organic Growth per Quarter
Atlas Copco Group, continuing operations

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

Volume and price
Order cancellations
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Atlas Copco Group Sales Bridge
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Contents

• Q2 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Atlas Copco Group
Operating Profit and Return On Capital Employed
(ROCE) by Business Area
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Compressor Technique

• 34 organic order decline
• Compared to a strong quarter the previous year
• Aftermarket sales still held up well
• Operating margin at 17.5, adjusted for MSEK 114
  in restructuring costs
• Affected by under-absorption
• Positively affected by currency and
• Unique energy saving certification
• for range of compressors

reduced functional costs
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July 17, 2009, www.atlascopco.com
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Compressor Technique
Volume and price
Quarterly operating margins include Prime Energy
from Q1 2006.
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Construction and Mining Technique

• Order intake still substantially down compared to
  last year
• Organic order decline of 39, cancellations
  stopped
• Aftermarket continued on healthy level
• Increased inquiries from customers
• Operating profit at MSEK 875, including MSEK 85
  in restructuring costs
• Adjusted margin at 14.3, supported by currency
  and

functional cost reductions
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Construction and Mining Technique
Volume and price
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Industrial Technique

• Considerable order decline
• Both order intake and revenues down 45
  organically
• Continued weak demand, both from the motor
  vehicle industry and the general industry
• Adjusted operating profit margin at 3.7 (19.7),
  excluding restructuring costs of MSEK 58

• Margin heavily affected by under-absorption

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Industrial Technique
Volume and price
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Contents

• Q2 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Group Total
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Profit Bridge
April June, 2009 vs 2008
One-time items include restructuring costs as
well as reversal of previous years one-time
items.
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Profit Bridge by Business Area
April June, 2009 vs 2008
One-time items include restructuring costs in all
three business areas as well as reversal of
previous years one-time items.
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Balance Sheet
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Capital Structure
Net Debt/EBITDA
Net Debt adjusted for the fair value of interest
rate swaps
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Atlas Copco ABs Loan Maturity Profile
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Cash Flow
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Contents

• Q2 Business Highlights
• Market Development
• Business Areas
• Financials
• Outlook

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Near-term Outlook

• The demand is expected to remain weak in most
  industries and regions and stay around the
  current level.

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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.