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Page 1: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Atlas Copco Group

Atlas Copco Capital Markets Day, November 29, 2011

Ronnie Leten, President and CEO

� Established 1873 in Stockholm, Sweden

� Four focused business areas � Compressor Technique(as from July 1, 2011) � Industrial Technique

� Mining and Rock Excavation Technique � Construction Technique

� Global presence In more than 170 countries

� Employees 1) 36 638

� Annual revenues 2) MSEK 78 314 (BEUR 8.5) (BUSD 11.4)

� Operating margin 2) 21.7%

Listed on NASDAQ OMX Stockholm and available as ADR in the United States

Atlas CopcoQuick facts

1) As of September 30, 20112) 12 months ending September 30, 2011SEK/USD 6.85 SEK/EUR 9.26 as of September 30, 2011

Symbols and Tickers

A share B share

NASDAQ OMX ATCO A ATCO B

ISIN code SE0000101032 SE0000122467

Reuters ATCOa.ST ATCOb.ST

Bloomberg ATCOA SS ATCOB SS

ADR (USA) ATLKY.OTC ATLCY.OTC

Atlas Copco Capital Markets Day - November 29, 20112

Page 2: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Atlas Copco

� A leading provider of industrial productivity solutions, with four focused business areas

� Diversified sources of revenues and earnings: Worldwide presence and customer diversification.

� Consistent strategy

� Strong and stable service business

� Asset-light business model with focus on capital efficiency

� Strong value creation track record and well positioned for the future– Resilience in profit and cash flow

� Fit for more!

Atlas Copco Capital Markets Day - November 29, 20113

Our business model

� Direct sales/specialist distribution

� Direct service

� Application knowledge

� Focused businesses

� Commonality in process, quality and service

� Flexible organization

� Strong corporate culture

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Page 3: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Our business model – agile and resilient

Variable cost structure

“Asset-light” operations

Stable aftermarket business

Resilience

Agile operational set-up

Vol

ume

/ Pro

fits

Time

Deteriorating business climate� Reduce variable costs� Working capital reduction

Improving business climate� Add variable costs� Working capital increase� Small incremental investments

Atlas Copco Capital Markets Day - November 29, 20115

Swedes say…

� … there is no such thing as bad weather, only bad clothing

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Page 4: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Atlas CopcoRevenues and operating margin

Continuing operations, excl. divested operations in rental service and professional electric tools. 12 month figures.

Atlas Copco Capital Markets Day - November 29, 20117

Diversified businesses

Orders received by customer category

Revenues by business type

Revenues by geographic area

NorthAmerica

18%

Europe

31%Africa/MiddleEast

11%

29%

11%

Asia/Australia

SouthAmerica

Construction

24%

Manufacturing

24%Mining

28%

6%7%Services

Other

Equipment

59%

41%

Aftermarket

Process

11%

YTD September 2011 pro-forma

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Page 5: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Atlas Copco Group

CompressorTechnique38%

Industrial Technique

9%

ConstructionTechnique

36%

Revenues per business area

Mining and Rock ExcavationTechnique

17%

Pie chart: Revenues YTD September 2011,

Atlas Copco Capital Markets Day - November 29, 20119

Compressor Technique

� Develop Atlas Copco’s leading position in the field of compressed air and gas

0

5

10

15

20

25

30

35

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2008 2009 2010 Sep. 2011

Revenues, MSEK Operating margin, %

MSEK %

NorthAmerica

16%

Europe

35%

Africa/MiddleEast

11%

30%

8%

Asia/Australia South

America

Pie chart: Revenues YTD September 2011, Graph: 12 months figures pro-forma

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Page 6: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Industrial Technique

� Develop Atlas Copco’s leading position in industrial power tools, assembly systems, quality assurance products, software and services

0

5

10

15

20

25

0

2 000

4 000

6 000

8 000

10 000

2008 2009 2010 Sep. 2011

Revenues, MSEK Operating margin, %

MSEK %

NorthAmerica

24%

Europe

47%

Africa/MiddleEast

1%

21%

7%

Asia/Australia

SouthAmerica

Pie chart: Revenues YTD September 2011, Graph: 12 months figures

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Industrial Technique

� Growing demand

� Sustainable productivity – Increased environmental concern

– Higher expectations on quality and traceability

– Improved ergonomics for the operator

– Extending the service offer

Trends

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Page 7: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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2 operations – 3 persons

1 operation – 1 person

Industrial Technique

� Support customers to improve quality and productivity

� Extending the offer

� More feet on the street

� Improve the resilience

Priorities

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Industrial Technique

� Advanced pneumatic drill for the aerospace industry

� Assembly system for tightening in safety-critical applications

� Standard industrial tools

Product development

Positive Feed Drill

Assembly tools and system

Impact wrench

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Page 8: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Industrial Technique

� Advanced “new” assembly technology

� Fast growing segment driven by assembly trends in automotive

� Opportunity to expand in new segments

Acquisition – SCA Schucker

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Page 9: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Mining and Rock Excavation Technique

� Develop Atlas Copco’s leading position in rock excavation for mining and civil engineering applications

Pie chart: Revenues YTD September 2011, Graph: 12 months figures pro-forma

NorthAmerica

21%

Europe

21%

Africa/MiddleEast

17%

28%

13%

Asia/Australia

0

5

10

15

20

25

30

0

5 000

10 000

15 000

20 000

25 000

30 000

2008 2009 2010 Sep.2011

Revenues, MSEK Operating margin, %

MSEK %

SouthAmerica

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Construction Technique

� Develop Atlas Copco’s position in portable energy, construction and demolition tools, and road construction equipment

0

5

10

15

0

5 000

10 000

15 000

2008 2009 2010 Sep. 2011

Revenues, MSEK Operating margin, %

MSEK %

NorthAmerica

12%

Europe

38%

Africa/MiddleEast

10%

27%13%

Asia/Australia South

America

Pie chart: Revenues YTD September 2011, Graph: 12 months figures pro-forma

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Page 10: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Construction Technique

� Growing demand– Urbanization

– Emerging markets

– Roads and transport

� Sustainable productivity – Increased environmental concern

– Improved ergonomics and safety for the operator

– Extending the service offer

Trends

Capital expenditure - nonresidential infrastructure

Capital expenditure estimates for nonresidential infrastructure USD billions, real terms (2005)Source: IHS – Sept. 2011

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2005

2010

2015

E

2020

E

2025

E

BUSD

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Construction Technique

� Extending the offer

� More feet on the street

� Develop service

� Increase operational efficiency

0

1 000

2 000

3 000

4 000

5 000

6 000

North Am.

South Am.

Europe Africa / ME

Asia / Aus.

MS

EK

Revenues YTD Sep. 2008

Revenues YTD Sep. 2011

Priorities

Revenues pro-forma

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Page 11: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Construction TechniquePortable Energy product strategy

Air Power Water Light Used

On-site compressors

On-site generators

On-SitePumps

On-SiteLight

Equipmentand

accessories

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Construction Technique

� Demolition and compaction equipment

� Road construction equipment

� Portable compressors and generators

Product development

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Page 12: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Construction Technique

� Extending the offer

� Presence in more markets / segments

� Critical mass for product development

Atlas Copco Capital Markets Day - November 29, 2011

Acquisition – GESAN

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Long term and vision driven

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Page 13: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Major trends

Emerging markets Energy and environment

China, India, Russia, Brazil and others Energy efficiency / CO2 reduction

Infrastructure investments New applications

Demand for raw material Innovation

Urbanization Productivity

GDP Growth estimates

Source: OECD Economic Outlook No. 87

Evolution of energyrequirement for compressors

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Major trends

4.0%

4.4%

4.7%

4.9%

5.0%

5.0%

5.1%

5.8%

5.9%

7.9%

8.1%

8.8%

Russia

Brazil

Mexico

Argentina

Saudi Arabia

South Africa

Turkey

Indonesia

China

Nigeria

India

Vietnam

Projected average annual real growth in GDP 2010-20 50

Source: PwC main scenario model projections for 2010-2050

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Page 14: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Priorities

Profitable growth

Presence in growth markets Developing our service business

Continued innovation Operational excellence

Atlas Copco Capital Markets Day - November 29, 201127

0

5 000

10 000

15 000

20 000

25 000

30 000

2002 Sept.2011

0

2 000

4 000

6 000

8 000

10 000

12 000

2002 Sept.2011

0

2 000

4 000

6 000

8 000

10 000

2002 Sept. 2011

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2002 Sept.2011

0

5 000

10 000

15 000

20 000

25 000

30 000

2002 Sept.2011

Worldwide presence 2002 vs Sept. 2011The shift

Share of orders received 12 months until September 30, 2011

Share of orders received 2002 (continuing operations)

+83%

+324%

+322%+478%

20%

47%

8%

20%

5%

19%

10%

31%

12%

28%

+176%

Average exchange rates

0212 1109 ∆

USD 9.72 6.50 -33%

EUR 9.15 9.06 -1%

MSEK.

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Page 15: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Aftermarket growth

12 month revenues. Aftermarket includes consumables and rental

32%

34%

36%

38%

40%

42%

44%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2005 2006 2007 2008 2009 2010 Sept.2011

Sh

are

of re

ven

ues

MS

EK

Equipment revenues, MSEK Aftermarket revenues, MSEKAftermarket share of revenues, %

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Climbing The Service

Ladder

Climbing The Service

Ladder

AftermarketIncreasing penetration

100%

100%

Cus

tom

er S

hare

1 to 1 ratio

PopulationManagement PopulationManagement

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Page 16: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Service divisions in all business areasDedicated organizations

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� New products and solutions, a driving force in organic growth

� Increase customer value

� Long-term strategic importance

� Core process

� Strong focus

Minetruck

Energy recovery unit forrotary screw compressors

Controller for electricnutrunner and screwdriver

Dynapacasphalt paver

Product development / innovations

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Page 17: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Product development in Asia

� Differentiated offer fit for the local need

� To have an offer for various segments

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Operational excellence

� Improving the flows– Information

– Cash

– Material/goods

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Page 18: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Investments for sustainable profitable growthNew companies, new markets, increased capacity

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Compressor manufacturing in China

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Page 19: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Increase capacity in Fagersta, Sweden

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Distributor/competence center in USA

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Page 20: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Customer Center in Mali

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Organic growth and acquisitions

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Page 21: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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Summary

� Agile and resilient

� Fit for more!

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Committed tosustainable productivity.

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Page 22: Atlas Copco Group...1 Atlas Copco Group Atlas Copco Capital Markets Day, November 29, 2011 Ronnie Leten, President and CEO Established 1873 in Stockholm, Sweden Four focused business

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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.”

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