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The Atlas Copco Group

Business Code of Practice

The Atlas Copco Group

Contents
The Atlas Copco Group First in mindfirst in choice Core values Relationships Society and the environment Employees Customers Business partners Shareholders Accountability Transparency Business integrity Governance Implementation 1 2 3 4 5 6 7 7 8 9 9 10 11 12

Business Code of Practice

Summarized in the Atlas Copco Business Code of Practice are the following internal policy documents, related to business ethics and social and environmental performance. All companies within the Group are expected to adhere to these policies, all published in The Way We Do Things. Business Integrity policy Environmental policy Social policy Communications guidelines Disclosure policy Principles on business control Principles on audits and internal control The main international ethical guidelines supported by Atlas Copco are: United Nations Universal Declaration of Human Rights www.un.org International Labour Organization Declaration on Fundamental Principles and Rights at Work www.ilo.org United Nations Global Compact www.unglobalcompact.org OECDs Guidelines for Multinational Enterprises www.oecd.org Atlas Copcos Sustainability reporting follows the GRIGlobal Reporting Initiativeguidelines www.globalreporting.org

Atlas Copco AB and its subsidiaries are sometimes referred to as the Atlas Copco Group, the Group, or Atlas Copco. Atlas Copco AB is also sometimes referred to as Atlas Copco.

The Atlas Copco Group

The Atlas Copco Group is a global industrial group of companies developing, manufacturing, and marketing products and services to a wide range of customers and end-users. A world leader, the Group provides compressed air and gas equipment, generators, construction and mining equipment, assembly systems, electric and pneumatic tools, and related services and equipment rental. Our business activities are conducted through separate operating divisions that work globally. The Atlas Copco Group is united and aligned through a shared vision, and a common identity, and an adherence to this Atlas Copco Group Business Code of Practice.

Gunnar Brock, President and Chief Executive Officer

2 The Atlas Copco Group

First in mindfirst in choice

The Atlas Copco Group has as a vision to become and remain first in mindfirst in choice of its customers, potential customers, and of other key stakeholders. To us this means being a leader; we should lead in the share of mind and in the share of business; we should be seen as an innovator who sets the standards and exceeds high expectations.

The Atlas Copco Group

Core values
The Groups core values of interaction, commitment, and innovation formed our past, created our present, and will guide our future. Our core values represent a competitive advantage to the Group and help us to maintain our leadership position, even in a changing environment. A significant attribute of Atlas Copco is the ability to listen to and understand the diverse needs of our customers and other stakeholders, coupled with our capacity to create new and better solutions based on what we learn from this interactive process. Commitment means that we are totally engaged in finding the best solution we can possibly deliver. We are as fully committed to our people and to adding value to our customers business, as we are to our own targets and goals. It is our belief that there is always a better way of doing things. That innovative spirit is a vital part of Atlas Copcos identity, a vital part of our way of conducting business. It is also the driving force that has made us a leader in our industry. Innovation is the ultimate driver for long-term profitability and growth. Our core values, interaction, commitment, and innovation, are reflected in how we relate to our main stakeholders. In addition, all companies within the Group are expected to adhere to the policies related to business ethics and social and environmental performance.

Relationships
Customers Employees Shareholders Business partners

Society and the environment

Relationships

Society and the environment

We strive to be a good and reliable corporate citizen, observing the spirit as well as the letter of the laws of the countries in which we operate.

We support fundamental human rights and respect those rights in conducting the Groups operations
throughout the world.

We recognize that our commitment to financial success must also take into account the broader
economic, environmental, and social impacts of our operations.

We believe in conducting business in a manner that preserves the environment for future generations.
We aim at having all our major units ISO 14001 certified. Atlas Copco aims to be an industry leader in environmental protection in the application areas served by our products and services. As a part of this, all products and processes shall be evaluated from an environmental perspective.

Atlas Copco encourages learning and development through cooperation with local communities.

6 Relationships

Employees
We strive to be the preferred employer of both current and potential employees. Our aim is to attract, develop, and keep qualified and motivated people in a professional environment.

We aim to offer a safe and healthy working environment in all our operations. We believe in equal opportunities, fairness, and diversity. We recruit and promote on the basis of
qualifications for the work to be performed, regardless of race, religion, gender, age, nationality, disability, sexual orientation, union membership, and political opinion.

We recognize that employees have the right to choose whether or not to be represented by trade
unions for purposes of collective bargaining. No discrimination shall be directed against any employee exercising such rights.

Under no circumstances will forced or compulsory labor be employed in our operations. We are
strictly against child labor and other forms of exploitation of children. We do not employ any person less than 15 years old, and adapt to local standards that specify a greater age.

Each of us is expected to contribute to the Group, and our performance is rewarded in a fair way.
Appraisals are made on an annual basis.

Our employees are continuously offered training and development possibilities to safeguard their
chance to grow with the Group. The goal is an average of 40 training hours per year for each employee.

We encourage a flow of information across divisional, functional, and geographical borders to

make full use of the available knowledge and experience.

Relationships

Customers
We strive to be the preferred supplier to current and potential customers and end-users, which means that we should achieve the highest possible customer and market share.

We aim to deliver consistently high-quality products and services that contribute to our customers
productivity and prosperity.

Our products and services are developed with the aim of meeting the quality, functionality, safety,
and environmental needs of our customers.

We operate worldwide with a long-term commitment to the customers in each country and market
served, and we strive to develop close relationships with our customers in order to be able to continuously meet and exceed their expectations.

Business partners
We strive to be the best associate for our business partners, such as suppliers, subcontractors, and joint venture partners, and to be the one that they prioritize.

We seek business partners whose policies regarding ethical, social, and environmental issues are
consistent with our own, and we make them aware of our commitments and expectations.

Business partners are selected and evaluated impartially on the basis of objective factors including quality, delivery, price, and reliability, as well as commitment to environmental and social performance, and development.

8 Relationships

Shareholders
We strive to be the preferred company for shareholders to invest in, and we aim to create, and continually increase, shareholder value.

We aim to provide a long-term investment return above the industry average, by delivering
innovative and competitive solutions to our customers.

Accountability

Transparency
In all our communications, both written and spoken, we are committed to being open, truthful, and accurate within the limits of commercial confidentiality. We provide reliable and relevant information on our activities in a timely, regular manner. We consider interaction important and therefore have a positive attitude toward constructive dialogues with all of our stakeholders. Atlas Copco has established high reporting standards, where each employee involved in the recording, processing, and reporting of information is expected to safeguard its validity and correctness. Financial results are published in Annual and Quarterly Reports. Atlas Copco also reports on the three sustainability performance dimensions (economic, environmental, and social) in a yearly Sustainability Report. Published material can be accessed through Atlas Copcos web site, www.atlascopco-group.com, offering comprehensive additional information about our brands and operations.

10 Accountability

Business integrity
Wherever we operate, our reputation is a most valuable asset, and it is determined by how we act. We shall avoid any action that would jeopardize respect for the Group.

We have high standards of business and personal ethics; we adhere to our internal policies, and
obviously follow all applicable laws and regulations in the countries where we operate.

We are committed to honesty in every situation and we refrain from having interests which conflict
with the interests of the Group.

We support and strive for fair competition, and thus refuse to enter into discussions or agreements
with competitors concerning pricing, market sharing, or other similar activities.

We refrain from giving or receiving anything of more than token value to or from any stakeholder,
to avoid the risk of creating an unhealthy loyalty.

We respect company assets and safeguard all tangible and intangible assets of the Group from
loss, theft, and misuse.

The Group does not take political stands. Therefore we do not use Group funds or assets to
support political campaigns or candidates, or otherwise provide services to political endeavors.

Accountability

11

Code

Board of Atlas Copco AB

The Way We Do Things Operational procedures on a divisional level Internal and external audits

Group Executive Management

Operational units

Governance
The Board of Directors is responsible for approving the overall Group strategy and organization. Except for one person, the President and CEO, the Board has only nonexecutive directors. The Board presently has two committees: the audit committee and the remuneration committee. The President and CEO is responsible to the board for the daily operations of the Group. Group Executive Management is responsible for developing and following up on Group strategies, objectives, and policies, including financial, social, and environmental performance, under the leadership of the President and CEO.

12 Accountability

Implementation
This Business Code of Practice summarizes policies common to all companies in the Group. Our behavior is guided by these internal policies, helping us to increase the value of the Group. These policies, along with other principles, guidelines, and instructions, are gathered in The Way We Do Things, an internal database accessible to all employees through Atlas Copcos intranet. It is the responsibility of each employee to be familiar with and adhere to, the content of The Way We Do Things. Appropriate training is provided through the Groups Circles program, which is mandatory for all new employees. We will inform key stakeholders about our Business Code of Practice. Based on the policies described in The Way We Do Things, operational units prepare strategies and implementation plans. Follow-up procedures are established for each policy. Social and environmental performance indicators are reported and followed up on a Group level. Risk assessments in relation to our key stakeholders regarding legal, as well as social and environmental performance, are reported at board meetings. To safeguard the implementation, internal audits are conducted on site in our companies.

Information on Atlas Copco

For publications in electronic format and information on the Atlas Copco Group, go to: www.atlascopco-group.com Annual Report Quarterly Reports Sustainability Report Achieve (a yearly house magazine)

Contacts
For printed publications and other information on the Atlas Copco Group, contact: Atlas Copco AB Group Communications SE-105 23 Stockholm, Sweden Phone: +46-8-743 8000 Fax: +46-8-643 3718 E-mail: General information: groupcom@se.atlascopco.com Investor relations: ir@se.atlascopco.com