COMMITTED TO

SUSTAINABLE

PRODUCTIVITY

Q2 2016 results

July 15, 2016

Q2 IN BRIEF

Solid industrial business – mining and construction demand weak

– Record order intake for Compressor Technique and Industrial Technique

Operating profit margin increased sequentially – down year-on-year

– Negative currency effect compared to Q2 2015

Healthy operating cash flow – further reduction of working capital

July 15, 2016

Atlas Copco - Q2 results 2016

2

Q2 FIGURES IN SUMMARY

Orders received were MSEK 25 934, organic decline of 1%

Revenues were MSEK 25 438, unchanged organically

Adjusted operating profit of MSEK 4 822 (5 162), margin at 19.0% (19.8)

– Items affecting comparability of MSEK -47 (-90)

– Reported operating profit of MSEK 4 775 (5 072), margin at 18.8% (19.4)

Profit for the period of MSEK 3 188 (3 651)

Basic earnings per share SEK 2.62 (3.00)

Operating cash flow at MSEK 3 487 (3 481)

July 15, 2016

Atlas Copco - Q2 results 2016

3

ORDERS RECEIVED - LOCAL CURRENCY

July 16, 2015

Atlas Copco - Q2 results 2015

4

June 2016

100 +2 +1

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

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

C = Last 3 months vs. previous year, %

A B C

23 -4 -5

7 -6 0

30 +3 0

9 -7 0

27 +10 +7

4 +4 +11

ORDER GROWTH PER QUARTERGrowth excl. currency

July 15, 2016

Atlas Copco - Q2 results 2016

5

-20

-10

0

10

20

30

40

11 Q

1

11 Q

2

11 Q

3

11 Q

4

12 Q

1

12 Q

2

12 Q

3

12 Q

4

13 Q

1

13 Q

2

13 Q

3

13 Q

4

14 Q

1

14 Q

2

14 Q

3

14 Q

4

15 Q

1

15 Q

2

15 Q

3

15 Q

4

16 Q

1

16 Q

2

Growth, excl. currency, % (volume, price and structure)

SALES BRIDGE

July 15, 2016

Atlas Copco - Q2 results 2016

6

Orders Orders

MSEK received Revenues received Revenues

2015 26 775 26 111 52 245 50 856

Structural change, % +2 +1 +1 +1

Currency, % -4 -4 -4 -4

Price, % +0 +0 +0 +0

Volume, % -1 +0 +0 -1

Total, % -3 -3 -3 -4

2016 25 934 25 438 50 655 48 575

April - June January - June

ATLAS COPCO GROUP

Compressor Technique

Industrial Technique

Mining and Rock Excavation

Technique

Construction Technique

Revenues by business area

July 15, 2016

Atlas Copco - Q2 results 2016

7

14%

25%

15%

46%

12 months through June 2016

COMPRESSOR TECHNIQUE

Record order intake, organic growth of 1%

– Solid growth for service

– Stable orders for compressors and vacuum

equipment

– Growth in Asia

Operating margin at 22.6% (22.7)

Acquisition of Leybold approved

0%

5%

10%

15%

20%

25%

30%

0

2 500

5 000

7 500

10 000

12 500

15 000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

July 15, 2016

Atlas Copco - Q2 results 2016

8

Centrifugal compressor with

remote monitoring capabilities

and an energy efficiency gain

of approximately 6%.

INDUSTRIAL TECHNIQUE

Record order intake, organic growth of 6%

– Growth for tools and systems from the motor

vehicle and general industries

– Continued strong growth in the service business

Operating margin at 22.1% (23.4), negatively

affected by product mix

0%

5%

10%

15%

20%

25%

0

1 000

2 000

3 000

4 000

5 000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Orders received, MSEK Revenues, MSEK Operating margin, %

July 15, 2016

Atlas Copco - Q2 results 2016

9

Electric pistol-grip tightening tool that combines increased

productivity with improved ergonomics

MINING AND ROCK EXCAVATION TECHNIQUE

Orders received decreased 4%, organically

– Continued weak demand for equipment

– Service business down year-on-year – stable

sequentially

– Consumables stable year-on-year

Operating margin up sequentially

Further efficiency measures

0%

3%

6%

9%

12%

15%

18%

21%

24%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

July 15, 2016

Atlas Copco - Q2 results 2016

10

Battery driven underground loader

0000

CONSTRUCTION TECHNIQUE

Orders received decreased 7%, organically

Lower demand for equipment – service flat

Growth in North America, but significant declines

in South America and Africa/Middle East

Operating margin at 12.5% (13.0 adj.),

negatively affected by volume and currency

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

July 15, 2016

Atlas Copco - Q2 results 2016

11

User-friendly portable generator equipped with a

secure, corrosion-proof canopy

GROUP TOTAL

MSEK 2016 2015 %

Orders received 25 934 26 775 -3%

Revenues 25 438 26 111 -3%

Operating profit 4 775 5 072 -6%

– as a percentage of revenues 18.8 19.4

Profit before tax 4 420 4 850 -9%

– as a percentage of revenues 17.4 18.6

Income tax expense -1 232 -1 199 3%

– as a percentage of profit before tax -27.9 -24.7

Profit for the period 3 188 3 651 -13%

Basic earnings per share, SEK 2.62 3.00

Return on capital employed, % 27 25

April - June

0%

5%

10%

15%

20%

25%

30%

0

5 000

10 000

15 000

20 000

25 000

30 000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

April – June 2016 vs. 2015

July 15, 2016

Atlas Copco - Q2 results 2016

12

26 111 25 438375 7

1 055

0

5 000

10 000

15 000

20 000

25 000

30 000

Q2 2015 One-time +acquisitions

Currency Volume, price, mixand other

Q2 2016

Revenues

5 0724 775

175

117 31540

0

1 000

2 000

3 000

4 000

5 000

6 000

Q2 2015 LTI (options) One-time +acquisitions

Currency Volume, price,mix and other

Q2 2016

Operating profit

PROFIT BRIDGEApril – June 2016 vs. 2015

July 15, 2016

Atlas Copco - Q2 results 2016

13

Volume, price, One-time items Share based

MSEK Q2 2016 mix and other Currency Acquisitions LTI programs Q2 2015

Atlas Copco Group

Revenues 25 438 7 -1 055 375 26 111

Operating profit 4 775 -40 -315 175 -117 5 072

% 18.8% nm 19.4%

PROFIT BRIDGE – BY BUSINESS AREAApril – June 2016 vs. 2015

July 15, 2016

Atlas Copco - Q2 results 2016

14

Volume, price, One-time items

MSEK Q2 2016 mix and other Currency Acquisitions Q2 2015

Compressor Technique

Revenues 11 929 527 -350 290 11 462

Operating profit 2 700 182 -90 5 2 603

% 22.6% 34.5% 22.7%

Industrial Technique

Revenues 3 622 -5 -75 5 3 697

Operating profit 799 -56 -10 0 865

% 22.1% nm 23.4%

Mining and Rock Excavation Technique

Revenues 6 124 -291 -455 0 6 870

Operating profit 1 041 -102 -180 65 1 258

% 17.0% 35.1% 18.3%

Construction Technique

Revenues 3 915 -246 -175 80 4 256

Operating profit 490 -42 -30 105 457

% 12.5% 17.1% 10.7%

BALANCE SHEET

July 15, 2016

Atlas Copco - Q2 results 2016

15

MSEK

Intangible assets 34 451 32% 33 860 32% 33 520 33%

Rental equipment 2 993 3% 3 113 3% 3 076 3%

Other property, plant and equipment 9 037 8% 9 508 9% 8 947 9%

Other non-current assets 3 905 4% 3 690 4% 4 128 4%

Inventories 18 297 17% 18 968 18% 16 906 16%

Receivables 27 021 25% 27 398 26% 25 985 25%

Current financial assets 2 170 2% 1 910 2% 1 576 2%

Cash and cash equivalents 8 891 8% 6 301 6% 8 861 9%

Assets classified as held for sale 10 0% 34 0% 11 0%

TOTAL ASSETS 106 775 104 782 103 010

Total equity 46 220 43% 43 074 41% 46 750 45%

Interest-bearing liabilities 26 383 25% 28 943 28% 25 214 24%

Non-interest-bearing liabilities 34 172 32% 32 765 31% 31 046 30%

TOTAL EQUITY AND LIABILITIES 106 775 104 782 103 010

Jun. 30, 2016 Jun. 30, 2015 Dec. 31, 2015

CASH FLOW

July 15, 2016

Atlas Copco - Q2 results 2016

16

MSEK 2016 2015

Operating cash surplus 5 665 6 170

of which depreciation added back 1 042 1 059

Net financial items 82 367

Taxes paid -3 609 -1 199

Pension funding -36 36

Change in working capital 441 -520

Increase in rental equipment, net -196 -272

Cash flows from operating activities 2 347 4 582

Investments of property, plant & eq., net -292 -399

Other investments, net -391 -194

Cash flow from investments -683 -593

Adjustment, currency hedges of loans -427 -508

Adjustment, tax payment in Belgium 2 250 0

Operating cash flow 3 487 3 481

Company acquisitions/ divestments -357 -22

April - June

NEAR-TERM OUTLOOK

The overall demand for the Group is expected to remain at current level.

July 15, 2016

Atlas Copco - Q2 results 2016

17

COMMITTED TO

SUSTAINABLE PRODUCTIVITY.

July 15, 2016

Atlas Copco - Q2 results 2016

18

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.”

July 15, 2016

Atlas Copco - Q2 results 2016

20