COMMITTED TO SUSTAINABLE PRODUCTIVITY Q results April 29, 2014 COMMITTED TO SUSTAINABLE PRODUCTIVITY We stand by our responsibilities towards our customers, towards the environment and the people around us. We make performance stand the test of time. This is what we call Sustainable Productivity. April 29, 2014 Atlas Copco - Q1 results Q1 IN BRIEF Stabilized order intake Strong demand for industrial tools Stable demand for industrial compressors on a low level for large machines Improved demand for construction equipment Low but stable demand for mining equipment Strong quarter for Edwards, the newly acquired vacuum solutions business The service business continued to grow Lower profit margin April 29, 2014 Atlas Copco - Q1 results Q1 FIGURES IN SUMMARY Orders received increased by 8% to MSEK , organic decline of 2% Revenues reached MSEK , organic decline of 2% Operating profit decreased to MSEK (4 156) Operating margin at 17.6% (20.5) Negative effect primarily from lower volumes and currency Restructuring costs of MSEK 75, adjusted operating margin 18.1% (20.8) Profit before tax at MSEK (4 045) Basic earnings per share SEK 2.27 (2.46) Operating cash flow at MSEK (1 635) April 29, 2014 Atlas Copco - Q1 results ORDERS RECEIVED - LOCAL CURRENCY April 29, 2014 Atlas Copco - Q1 results Excl. Edwards +3 AB March 2014 A =Share of orders received, year-to-date, % B =Last 3 months vs. previous year, % Excl. Edwards Excl. Edwards Excl. Edwards 4-13 Excl. Edwards Excl. Edwards Excl. Edwards 0 ORGANIC* ORDER GROWTH PER QUARTER Atlas Copco Group, continuing operations April 29, 2014 Atlas Copco - Q1 results * Volume and price ATLAS COPCO GROUP SALES BRIDGE April 29, 2014 Atlas Copco - Q1 results ATLAS COPCO GROUP April 29, 2014 Atlas Copco - Q1 results % 29% 15% 44% Q1 2014 COMPRESSOR TECHNIQUE 3% organic order decline Stable order intake for small- and medium-sized compressors Decreased orders for large machines Service continued to grow North America strong Strong quarter for Edwards Operating margin at 20.4% (22.6) Increased investments in the sales and service organization Dilution from acquisitions and currency April 29, 2014 Atlas Copco - Q1 results Organic revenue growth has not been restated for 2012 and 2013 following the move of Specialty Rental from Compressor Technique to Construction Technique AIRnet piping system INDUSTRIAL TECHNIQUE 13% organic order growth Strong orders from the motor vehicle industry Improved order intake from the general industry Healthy growth in service All major regions had strong development Operating margin at 21.7% (22.3) Supported by volume, but diluted by acquisitions and currency April 29, 2014 Atlas Copco - Q1 results Electro mechanical press tool MINING AND ROCK EXCAVATION TECHNIQUE 8% organic order decline Stable demand sequentially for mining equipment Service business unchanged, but consumables decreased somewhat Adjusted margin at 18.3% (23.4) Adjusted for MSEK 75 restructuring costs Margin affected by lower volumes and dilution from currency and acquisitions Further efficiency measures April 29, 2014 Atlas Copco - Q1 results Large diameter drilling consumables CONSTRUCTION TECHNIQUE 4% organic order growth Strongest growth in construction and demolition tools Positive development for specialty rental Solid growth in North America and Europe decline in Asia Operating margin stable at 12.1% (12.1), despite negative currency effects April 29, 2014 Atlas Copco - Q1 results Organic revenue growth has not been restated for 2012 and 2013 following the move of Specialty Rental from Compressor Technique to Construction Technique Drum cutter attachment GROUP TOTAL January March 2014 vs April 29, 2014 Atlas Copco - Q1 results PROFIT BRIDGE January March 2014 vs April 29, 2014 Atlas Copco - Q1 results PROFIT BRIDGE BY BUSINESS AREA January March 2014 vs April 29, 2014 Atlas Copco - Q1 results BALANCE SHEET April 29, 2014 Atlas Copco - Q1 results CASH FLOW April 29, 2014 Atlas Copco - Q1 results NEAR-TERM OUTLOOK The overall demand for the Groups products and services is expected to increase somewhat. The demand from the mining industry is expected to remain at the current level, while the demand from manufacturing and construction segments is expected to increase somewhat. April 29, 2014 Atlas Copco - Q1 results COMMITTED TO SUSTAINABLE PRODUCTIVITY. April 29, 2014 Atlas Copco - Q1 results