Committed to Customer Value The Atlas Copco Group, 2009
Atlas Copco in a Snapshot <ul><li>A world leading provider of industrial productivity solutions.  </li></ul><ul><li>Produc...
Leading Industrial Provider Construction  Others  25% 22% 13% 6% Manufacturing Process Mining  Services 26% 8% Sales per c...
Innovative Solutions Products Services Knowledge
Products Industrial tools Compressors Construction and mining Aftermarket and rental
Services A long term partner
Knowledge Competence centers Product design Applications
Strong Brands
Global Reach Spans More Than 160 Markets   Compressor Technique 48% Industrial  Technique 10% Construction and Mining Tech...
Worldwide Presence Production sites
The Atlas Copco Organization Executive Group Management and Corporate Functions Oil-free Air Industrial Air Portable Air S...
2008 Results
Compressor Technique
World Leader in the Compressed Air Business Construction  Others  Manufacturing Process Mining  Services Compressor Techni...
Industrial Compressors Compressor Technique
Portable Compressors Compressor Technique
Gas and Process Compressors and Expanders Compressor Technique
Quality Air Solutions™ Compressor Technique
Portable Generators Compressor Technique
Specialty Rental  Compressor Technique
Compressor Technique Service  Compressor Technique
2008 Results North America 15% Europe 43% Africa/ Middle East  10% 25% 7% Asia/ Australia South America Compressor Techniq...
Construction and Mining Technique
Strong Focus on Efficiency Construction  Others  Mining  Services Sales per customer category 5% 37% 2% 56% Construction a...
Underground Rock Drilling, Loaders and Mine Trucks Construction and Mining Technique
Surface Drilling Equipment Construction and Mining Technique
Blasthole, water well, oil and gas Construction and Mining Technique
Rock Drilling Tools Construction and Mining Technique
Exploration and Ground Engineering Construction and Mining Technique
Construction Tools Construction and Mining Technique
Road Construction Equipment Construction and Mining Technique
2008 Results North America 21% Europe 31% Africa/ Middle East  16% 21% 11% Asia/ Australia South America Construction and ...
Industrial Technique
Innovative Industrial Tools and Assembly Systems Construction  Services & Others  Manufacturing Process 84% 13% 1% 2% Sale...
Industrial Power Tools  Industrial Technique
Assembly Systems Industrial Technique
Vehicle Service Power Tools   Industrial Technique
2008 Results North America 21% Europe 57% Africa/ Middle East  15% 2% 5% Asia/ Australia South America In 2005 the two pro...
Shared Service across Businesses
Service Providers Financing Engineering support Administration
First in Mind—First in Choice ® Atlas Copco has a clear vision
Core Values .
Strategic Directions Growth: Organic and through acquisitions Innovations and continuous improvements Aftermarket
Focus on Corporate Responsibility
Competence Development 40 hours of training per year
Minimizing Environmental Impact AIRScan  Assembly tools Hydraulic breaker
Community Engagement Education Water for All Disaster relief
We are committed to your superior productivity through interaction and innovation.
 
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Atlas Copco Group Presentation 2009

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Atlas Copco Group presentation - an overview on the company - 2009

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  • Committed to Customer Value Welcome to this presentation about Atlas Copco and its strong commitment to customer value. My name is __________________ and I am _________________________. Let me start with a few facts.
  • . Atlas Copco in a Snapshot Atlas Copco is a world-leading provider of industrial productivity solutions. Products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. In close cooperation with customers and business partners, and over 135 years of experience, Atlas Copco innovates for superior productivity. Atlas Copco was founded in 1873. Headquartered in Stockholm, Sweden, the Group’s global reach spans more than 160 markets. Atlas Copco had 34 000 employees and revenues of approximately BSEK 74 for 2008.
  • . Leading Industrial Provider Atlas Copco’s customer base is 100% business to business. The manufacturing sector, including engineering and motor vehicles, accounts for about 25% of total revenues. The process industry accounts for 13%. The construction industry, comprising residential and non-residential building, as well as infrastructure projects, accounts for approximately 22%. The mining industry accounts for about 26%. Of invoiced sales, 98% is attributable to countries outside Sweden.
  • . Innovative Solutions Atlas Copco’s core competence is to innovate for superior productivity. Products and product development: Products are developed from core technologies to improve customers’ productivity and reduce their energy consumption. Atlas Copco has a strong reputation for innovation and works at the cutting edge of technology, which is essential for a market leader. Concern for the environment and the operator is an integral part of the product development process. Services: To meet our customers’ demands, Atlas Copco is continuously developing the aftermarket offering; preventive maintenance, service and repair, consumables, and spare parts. Knowledge: Atlas Copco’s portfolio of world-class customers requires world-class suppliers with comprehensive and in-depth knowledge about customer applications as well a about future trends. Atlas Copco interacts with customers to understand their needs, and then looks for the best solutions. To satisfy the specific need of each customer, knowledge and service is as important as the product itself.
  • . Products The products range from compressed air and gas equipment, generators, construction and mining equipment, to industrial tools and assembly systems. Compressors: We develop, manufacture, market, distribute, and service oil-free and oil-injected stationary air compressors, portable air compressors, gas and process compressors, turbo expanders, electric power generators, air treatment equipment (such as compressed air dryers, coolers, and filters) and air management systems. Construction and Mining: We develop, manufacture, and market rock drilling tools, underground rock drilling rigs for tunneling and mining applications, rigs and equipment for rock reinforcement, surface drilling rigs, equipment for loading and haulage, exploration drilling equipment, and construction tools. Industrial Tools: We develop, manufacture and market high-quality industrial power tools, assembly systems, and aftermarket products and services. Aftermarket and rental: We provide an extensive aftermarket offering as well as specialty rental services to customers in the construction and industrial manufacturing.
  • 6. Services A long term partner At Atlas Copco we are committed to our customers superior productivity through interaction and innovation. For us, our service and support offering, together with our products, means that we listen and that we care. We are proven reliable as a long term partner for our customers. We offer solutions ranging from basic spare parts and support through fully managed service agreements. We have well trained service technicians to ensure that the service is done professionally and in time. We have a supply chain that provides spare parts and components in shortest possible time. We are a global organization acting locally where our competencies are needed the most. Our focus is to maximize the utilization of the Atlas Copco equipment for our customers as well as optimize the performance of the products. By doing this we can reduce the risk, reduce the cost, increase uptime and increase the profit for our customers. In 2008, aftermarket excluding specialty rental amounted to approximately 27% of sales for Compressor Technique. The aftermarket business, including consumables, and rental represents approximately 44% of total sales for Construction and Mining Technique. For Industrial Technique, aftermarket represents approximately 23% of total sales.
  • . Knowledge Applications : To learn more about current and new customer applications Atlas Copco engineers spend time at customer sites on a regular basis to better understand the working environment of various target industries. Product design : Continuous research and development to secure new and more innovative products is critical for maintaining the competitiveness of Atlas Copco’s divisions. Competence centers : To maintain and further develop the knowledge within the core competence areas, Atlas Copco has established competence centers. One example of such a competence center is Airtec in Antwerp, Belgium, another is the Rock Excavation Center in Örebro, Sweden.
  • . Strong Brands In order to realize its vision of First in Mind—First in Choice ® , Atlas Copco owns over 30 brands. The products are differentiated and marketed through different distribution channels. Some of the brands are global, but the majority serve geographically limited regions. The multi-brand concept plays a significant role in Atlas Copco’s success. Each brand has a clear role to play and is justified when it adds to overall revenues and profits for each specific product. Each brand should signal membership in the Atlas Copco Group.
  • . Global Reach Spans More Than 160 Markets In 2008, the Atlas Copco Group invoiced external customers in more than 160 countries. Europe is Atlas Copco’s largest market, providing 39% of revenues. North America accounts for approximately 18% of revenues. Asia/Australia is increasing their share and now accounts for 22%.
  • . Worldwide Presence Atlas Copco manufactures and assembles products in 23 countries. Manufacturing is chiefly concentrated to Belgium, Sweden, the United States, Germany, France, and China. The Group has a strong market presence and strives to maintain close and long-term relationships with its customers. Approximately 85 countries are served by wholly or partly owned customer centers. Through a worldwide sales network Atlas Copco reaches more than 160 countries. Atlas Copco has established distribution centers in strategic locations. The first was Power Tools Distribution in Belgium, which supports several divisions in more than one business area. The distribution centers service customers worldwide with direct, daily deliveries.
  • . The Atlas Copco Organization Atlas Copco is organized in three, separate, focused but still integrated business areas, each operating through several divisions. Compressor Technique is headquartered in Belgium; Construction and Mining Technique, and Industrial Technique in Sweden. The role of the business area is to develop, implement, and follow up on the objectives and strategy within the total business scope, including environmental and social performance as appropriate. The divisions have their own operational and consolidated profit responsibility and develop their objectives, strategies, and structure within the scope of the business area. The divisions generally conduct business through the customer centers and product companies, which act on an equal-dignity basis. Common service providers – internal or external – have been established with the mission to provide internal services faster, to a higher quality, and at a lower cost, thus allowing the divisions to focus on their core businesses.
  • . 2008 Results In 2008 Atlas Copco achieved strong growth and record results. Improved demand, increased market presence and penetration, and successful introductions of new products. Strong order growth with double digit growth in all regions. Record revenues MSEK 74 177 (63 355), up 17% in volume. Operating profit MSEK 13 806 (12 066), corresponding to an operating margin of 18.6% (19.0).
  • . Compressor Technique The Compressor Technique business area develops, manufactures, markets, distributes, and services oil-free and oil-injected stationary air compressors, boosters, blowers, portable air compressors, gas and process compressors, turbo expanders, electric power generators, air treatment equipment (such as compressed air dryers, coolers, and filters) and air management systems. In addition, the business area offers specialty rental services of chiefly compressors and generators. Since 2008, the business area has a separate service division. The business area has in-house resources for basic development in its core technologies. Development, manufacturing, and assembly are concentrated to Belgium, with other units situated in Brazil, China, France, Germany, Great Britain, India, Italy, the Netherlands, and the United States.
  • . World Leader in the Compressed Air Business Compressor Technique has a diversified customer base. The largest customer segments are the manufacturing and process industries, which together represent about two thirds of revenues. The construction industry is also an important segment, primarily for portable compressors and generators. Customers are also found among utility companies and in the service sector. The products are intended for a wide spectrum of applications in which compressed air is either used as a source of power in manufacturing or the construction industry, or as active air in industrial processes. Clean, dry, oil-free quality air is preferred for applications in which compressed air comes into direct contact with the end-product. In those applications added accessories and services are becoming increasingly important. Portable compressors and diesel-driven electric power generators are reliable power sources for machines and tools in the construction sector as well as in numerous industrial applications. Gas and process compressors are supplied to various process industries, such as air separation plants, power utilities and liquefied natural gas applications. Stationary industrial air compressors and associated air-treatment products and aftermarket activities represent about 65-70% of sales. Large gas and process compressors represents just above 10% and the balance is portable compressors, generators and specialty renal, some 20-25% of sales. The aftermarket represented about 27% of total sales in 2008.
  • . Industrial Compressors Industrial air compressors are used as energy air, or as active air in production processes. In many applications and processes, the requirement for high-quality, clean air is crucial, and 100% oil-free air is needed to safeguard the quality of the end product and to guarantee a reliable process. Atlas Copco is the first company in the industry that has received the ISO 8573-1 (2001) Class 0 certification as no oil could be determined in the compressed air. Both compressor product ranges combine full feature all-in-one models with total integration of all components in the compressor package. The range also features models that include the latest energy optimization technology with Variable Speed Drive (VSD), which can provide energy savings of up to 35%. These industrial compressors are marketed under a number of different brands besides the global Atlas Copco brand.
  • . Portable Compressors Portable air compressors constitute an important power source for machines and tools used mainly in the building and construction sector but also in other industries. Portable compressors are also rented for shorter time periods to contractors and to the manufacturing industry to cope with unexpected events, to permit servicing of stationary compressors, or to handle short-term peaks in demand. Atlas Copco offers each customer a complete, portable compressed air system adapted to the customer’s specific requirements for quality air. Portable compressors are marketed under several different brands.
  • . Gas and Process Compressors and Expanders Gas and Process compressors and expanders are used primarily by the oil and gas, chemical/petrochemical process and power industries, and also by industries that specialize in the production of gases through the separation of air to end-users. Atlas Copco has recently received major contracts for the liquid natural gas (LNG) market. The Gas and Process division’s products are typically highly engineered, based on a modular assembly system, and used in a wide range of process industry applications.
  • . Quality Air Solutions ™ Whether fully integrated in the compressor package or installed separately, Atlas Copco has a full range of air treatment equipment for every application. From compressed air generation to air treatment and condensate management systems, Atlas Copco can provide for total quality air solutions.
  • . Portable Generators Portable generators are offered in various formats to suit different applications. One example is for light-towers on worksites, when it is dark or for entertainment. The unique mobility, robust design, and environmental protection have made these products a favorite of rental and construction customers the world over.
  • . Specialty Rental All temporary energy needs are covered by the specialty rental division. Through the multi-brand strategy the Atlas Copco Group covers the market of temporary air and electricity needs with both Rand-Air and Atlas Copco brand. Whatever quantity of extra power a customer needs, the Group delivers it with complete solutions, including all accessories. Dedicated professionals are always on the move, delivering high quality, 24/7 service.
  • . Compressor Technique Service Compressor Technique Service division provides a complete range of aftermarket services with the aim to maximize customers&apos; productivity. The division focuses on spare parts supply, professional service, air monitoring and connectivity solutions.
  • . 2008 Results – Compressor Technique Revenues totaled MSEK 35 587 (31 900). Operating profit was MSEK 7 291 (6 749), corresponding to a margin of 20.5% (21.2).
  • . Construction and Mining Technique The Construction and Mining Technique business area develops, manufactures, and markets rock drilling tools, underground rock drilling rigs for tunneling and mining applications, surface drilling rigs, loading equipment, exploration drilling equipment, and construction tools. Since 2007, the business area also offers compaction and paving equipment worldwide. The business area has in-house resources for basic development in its core technologies. Construction and Mining Technique has its principal product development and manufacturing units in Sweden and in the United States, with other units in Austria, Canada, China, Finland, Germany, India, Japan, and South Africa.
  • . Strong Focus on Efficiency A key customer segment for the business area is the mining sector. The mining sector includes production and development work for both underground and surface mining. This segment requires rock drilling equipment, rock tools, loading and haulage equipment, and exploration drilling equipment. The other key customer segment is construction, accounting for just above half of revenues. General and civil engineering contractors, often involved in infrastructure projects like tunneling or dam construction, demand rock drilling equipment and rock tools, while special trade contractors and rental companies are important customers for construction tools. Both mining and contracting customers are vital groups for aftermarket products, such as consumables, maintenance contracts, service, parts, and rental. This part of revenues is steadily increasing. The aftermarket, including consumables, and rental represents approximately 45% of total sales.
  • . Underground Rock Drilling, Loaders and Mine Trucks Underground drill rigs are commonly used for blast hole drilling in the construction and mining industries. With a wide range of tunnelling and mining drill rigs, Atlas Copco is the leading supplier of rock drilling equipment. Face drilling rigs are used for tunneling and drifting. Long hole production drilling rigs are used in underground mining. Bolting and scaling rigs are used for rock reinforcement. Raise drills are used for boring big diameter holes for shafts in mining and water power projects. The Boomer face drilling rigs, and the Simba production drilling rigs and the range of bolting and scaling rigs, are setting new standards in ergonomics, serviceability, productivity, and total economy. An interactive diagnostic system provides quicker fault location. Robust electronic components set a new industry standard with increased reliability and stability. To meet the productivity demands of underground mine operators around the world, Atlas Copco mine trucks and Load-Haul-Dumps (LHDs) are built to high standards of quality, performance, and reliability. An ever-increasing number of contractors and civil engineering companies are discovering the efficiency, manoeuvre ability, and advantages of Atlas Copco products in tunnelling, hydropower, and other types of underground construction and excavation operations.
  • 26. Surface Drilling Equipment Surface crawler rigs are used for blast hole drilling in construction work, quarrying, and open-pit mining. The ROC generation of drill rigs is based on a modular design to simplify adaptation to customer requirements and efficient flow production. Atlas Copco has a wide range of surface crawlers that covers a hole range from 35-180 mm. The latest innovations are a new radio remote controlled rig and the SmartRig, providing a major step forward in hole quality, environmental issues, safety and and total drilling economy. Atlas Copco offers rigs for three different drilling methods: Tophammer, Down-The-Hole (DTH) hammer, and the unique, patented COPROD system. COPROD combines the best of two worlds - the high performance of the Tophammer with the precision of the DTH method.
  • . Blasthole, water well, oil and gas Rotary blast hole drills are used in open-pit mining. The rigs are used for rotary drilling or drilling with down-the-hole hammers, either for single pass or multipass drilling. Many offer angle drilling for additional versatility. Deep hole drilling rigs are used for water well, exploration, shallow oil and gas, and coal bed methane applications. These self-contained, truck-mounted drills are designed to drill quickly and efficiently in spite of the extremely rugged conditions under which they work. Deep hole drills must be mobile and meet all transport and environmental regulations.
  • . Rock Drilling Tools Atlas Copco develops, manufactures, and markets an extensive range of top quality rock drilling tools, including the new product line of rotary drill bits. An example of the innovative drive is the patented Magnum SR system. The new rods and bits offer straighter holes, longer service life, and higher productivity in drifting and tunneling applications. Increasingly, customers are evaluating suppliers according to the value they can add to the customer’s processes. Therefore, the sales and service organization is developing their service offer, e.g. product service, maintenance and training as well as logistics and warehousing services. By developing products, services, and expertise, and by working actively and closely with our customers, Atlas Copco is creating win-win relationships.
  • . Exploration and Ground Engineering Exploration rigs and core drilling tools are used in exploration drilling. The DIAMEC core drilling rigs are used to recover core samples from different rock formations in underground applications while the Christensen rigs are used for surface exploration drilling. The most advanced rigs are equipped with a computerized control panel, that makes the drilling quicker and safer for the operator. By presetting the drilling parameters, the rig automatically monitors and adjusts the criteria to the prevailing rock conditions. A wide range of drilling accessories has been developed to match the rigs. We also provide a range of products within the field of geotechnical engineering. A complete range of rock and soil reinforcement products are combined with equipment for grouting operations. The Atlas Copco Unigrout platforms are mobile grout plants, including mixers, agitators, pumps, and recorders, which provide superior productivity in tunneling grouting. The geotechnical MUSTANG drilling rigs are used for all types of civil-engineering applications, such as micro-piling, underpinning, anchoring and geotechnical surveys.
  • . Construction Tools Construction tools include a wide range of high quality construction and demolition equipment, from rig-mounted hydraulic breakers, crushers, pulverizers and boom systems to pneumatic or gasoline driven breakers, picks, chipping hammers, and rock drills. The equipment is used by construction and demolition contractors, as well as by quarry operators to crush boulders during excavation work. Building contractors use it for demolishing buildings and for modernizing and repairing bridges, railways, and roads. Demolition equipment is also used in the mining industry. These products are marketed under the brands Atlas Copco, Chicago Pneumatic, and Shenyang.
  • . Road Construction Equipment The main product areas within Road Construction Equipment include rollers, pavers, planers, light and concrete equipment. Atlas Copco’s range is marketed under the Dynapac brand. Dynapac, which was acquired in 2007, is a leading, full line supplier of high quality compaction and paving equipment for the road construction industry. The equipment combines high speed, power and capacity with outstanding maneuverability and excellent operator comfort. The products are used for all types of road development and road construction work.
  • . 2008 Results – Construction and Mining Technique Revenues totaled MSEK 31 660 (25 140). Operating profit ended at MSEK 5 602 (4 384) and operating profit margin was 17.7% (17.4).
  • . Industrial Technique The Industrial Technique business area develops, manufactures, and markets high quality industrial power tools, assembly systems, and aftermarket products and services. It serves the needs of advanced industrial manufacturing, like the automotive and the aerospace industry, general industrial manufacturing and maintenance and vehicle service. The business area has achieved global market leadership. Industrial Technique has its principal product development and manufacturing in Sweden, France, the United States and Japan and, has assembly system application centers also in several other markets.
  • . Innovative Industrial Tools and Assembly Systems The motor vehicle industry including sub-suppliers is a key customer segment, representing more than half of Industrial Technique’s revenues, and the application served is primarily assembly operations. The motor vehicle industry has been in the forefront in demanding more accurate fastening tools that minimize production errors and enable recording and traceability of operations. The business area has successfully developed electric industrial tools and assembly systems that assist customers in achieving fastening according to their specifications and minimizing errors in production. Industrial manufacturing, in a broader sense, uses industrial tools for a number of applications. Customers are found in light assembly, general engineering, shipyards, foundries, and among machine-tool builders. The equipment supplied includes assembly tools, drills, percussive tools, grinders, hoists and trolleys, and accessories. Air motors are supplied also separately for different applications in production facilities. For vehicle service—car and truck service—and tire and body shops, the equipment supplied includes impact wrenches, percussive tools, drills, sanders, and grinders. There is a growing demand for aftermarket products and services, e.g. maintenance contracts and calibration services, which improve customers’ productivity. The aftermarket represents approximately 23% of total sales.
  • . Industrial Power Tools By focusing on the motor vehicle industry and its aftermarket, Atlas Copco has built up extensive expertise in the area of tightening tools. A modern car contains up to 2 000 screws and nuts. Tools must meet exacting standards when they are used in critical assembly processes such as engine block installation and wheel mounting. One of the keys to success in the assembly industry is to control and monitor assembly operations. Using new technology from Atlas Copco, it is now possible to assemble a car in Germany and monitor the process online in the United States. The white goods industry, which produces washing machines, refrigerators, dishwashers, and ovens, is another important customer segment for industrial power tools. As in the automotive industry, an extensive amount of screw tightening is required. This places high demands on the tools in terms of durability and ergonomic design. Other important customer segments are aerospace and general industry. The tools are marketed under the brands Atlas Copco, Desoutter, Chicago Pneumatic and Fuji.
  • . Assembly Systems Assembly systems are supplied primarily to the motor vehicle industry and its tier suppliers for assembly operations that place tough demands on productivity, quality assurance, and data communications. A typical application is wheel assembly, in which four or five bolts are tightened simultaneously. The operation starts when the system reads the type of vehicle and type of wheel electronically in a bar code or escort memory or via a network using Internet technology. This information tells the system which type of tightening sequence to run and with which parameters to ensure correct assembly. The tightening system also has to understand the differences in wheel sizes as well as materials, for example, if the hub is made of steel or aluminum. Synchronization in tightening the different bolts is very important, since the load has to be distributed evenly. Finally, the system also checks to make sure that the four wheels are assembled correctly on each vehicle before it leaves the station. Data from all tightening cycles are communicated to a plant computer system and can be transferred between production sites using the Internet for overall quality assurance and registration.
  • . Vehicle Service Power Tools Atlas Copco develops, manufactures and sells vehicle service power tools that are tough, powerful, and dependable, so customers can work faster and more efficiently. The products exceed the expectations of the most demanding professional technicians for tire shop, body shop and general repair applications, providing the ultimate power tool solutions combining top quality, high productivity, and the best value for your money. More torque, higher speeds, reduced vibration, less weight, greater control and maximum flexibility. All built to last. A global operation that puts power into the hands of the automotive professional for the most challenging maintenance and repair jobs on cars, trucks, buses and off-road equipment. The vehicle service power tools are branded Chicago Pneumatic.
  • . 2008 Results – Industrial Technique Revenues totaled MSEK 7 450 (6 871). Operating profit was MSEK 1 328 (1 539), corresponding to a profit margin of 17.8% (22.4).
  • . Shared Service across Businesses Atlas Copco’s formula to achieve profitable growth includes combining the advantages of a decentralized operative organization with the economies of scale that a large company can offer. Therefore, as a complement to the operative divisions, a number of internal service providers have been set up to provide service in administration, IT support, finance and banking, insurance, and product distribution. Information technology enables people around the world to work together to improve the quality of these services. The internal service providers are an integral part of the Group’s strategy and facilitate, besides realizing internal synergy effects, continuous improvement of processes and routines within these service areas.
  • . Service Providers Information technology offers exciting possibilities for people spread over the entire globe to work together and to benefit from synergy effects between operations. Focusing on increased efficiency in administration and support processes, the Group seeks new solutions and structures. Atlas Copco ASAP: Atlas Copco Advanced Service and Administration Provider was established in 1999. Atlas Copco ASAP Global serves sales companies worldwide with administrative services. Today, ASAP has more than 700 employees in five continents. Group Treasury: The Group’s internal bank, a profit-driven operation, assists companies in the Group. With offices in Sweden, the United States, and China, the bank provides services worldwide 24/7. Industria Insurance Company Ltd: Atlas Copco&apos;s wholly owned, in-house insurance operation, meets the specific insurance needs of the companies in the Group. The insurance operation begun in 1983 and Industria Insurance Company was formed in 1986. Atlas Copco IRB : Serves companies in the Group with administration of expatriates i.e. Atlas Copco people on work assignment outside their home countries.
  • . First in Mind—First in Choice ® Atlas Copco has a clear and very powerful vision: To become and remain: First in Mind—First in Choice ® for key stakeholders. Customers: We are committed to our customers’ superior productivity through interaction and innovation. 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. 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. Business partners: We strive to be the best associate for our business partners, such as suppliers, subcontractors, joint-venture partners and agents, and to be the one that they prioritize. Shareholders: We strive to be the preferred company for shareholders to invest in, and we aim to create, and continually increase, shareholder value. 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.
  • . Core Values Atlas Copco’s core values express what we stand for, what we think it takes to be able to serve our customers effectively and to reach our vision to become and remain First in Mind—First in Choice ® . Our values are guidelines that help us meet the needs of our target groups. Interaction: A significant attribute of Atlas Copco is our ability to listen and to understand the diverse needs of our customers and other target groups coupled with our capacity to create new and better solutions. Commitment: We are fully committed to our customers’ business and totally engaged in each and every project we undertake together. We believe in lasting relationships. That is one of the reasons why we attach such importance to consistently delivering high-quality products and keeping our promises. Innovation: We believe that there is always a better way of doing things. That explains why Atlas Copco is continuously striving to arrive at better and more efficient solutions. By consistently focusing on progress, we are able to raise our customers’ productivity. That innovative spirit is a vital part of our way of conducting business.
  • . Strategic Directions The Atlas Copco Group strives for and develops a global presence. Strategic directions are: organic and acquired growth, and innovations and continuous improvements, and aftermarket. Atlas Copco achieves growth primarily supported by selected acquisitions and also grows by increasing its existing business. Our focus markets are China, Russia, India, but also the United States. Innovative breakthroughs are a means of staying ahead of the competition and maximizing performance in the long run. We invest more in R&amp;D than any of our competitors. Continuous improvements in manufacturing products, marketing, organization, and business flows are intended to provide customers with better services and to safeguard short-term profitability. Aftermarket activities include accessories, consumables, spare parts, service contracts, maintenance, training, and testing and monitoring. Aftermarket business offers a stable revenue stream, high growth potential, high profit potential, optimized business processes, and enhanced product development, but - more important than anything else - a closer relationship with end customers.
  • . Focus on Corporate Responsibility Atlas Copco has 34 000 employees (year-end 2008) based in over 80 countries. The corporate culture is strong. All employees share the same vision, strategies, and strong commitment to Corporate Responsibility.
  • . Competence Development Atlas Copco’s growth is closely related to how the Group succeeds in being a good employer. Thus, attracting, developing, and keeping qualified and motivated people, is crucial to reach the vision. Each new employee is entitled to a solid introduction to his/her job, team, company, business area, and the Group. We are able to develop our skills through ongoing, on-the-job training in the form of real responsibilities from day one. To ensure that employees continue to have the knowledge they need to perform their duties, ongoing training and development activities take place both within the Group and with external providers. The target is a minimum of 40 hours per employee per year. We are all expected to contribute by committing ourselves to Group objectives and to our own aligned individual performance targets. With a global business conducted through numerous companies, Atlas Copco works hard to implement continuous competence development, knowledge sharing, and the corporate culture.
  • . Minimizing Environmental Impact It is during the life and use of the products that the largest environmental impact takes place. Life cycle assessments show energy consumption, oil leakage, and noise and dust emissions to be the most significant environmental impacts during the useful life of the products manufactured by Atlas Copco. Our ambition is to minimize the negative environmental effects from the design of its products, and during their manufacture and use. A few of our achievements are shown here. Hydraulic breaker: The new SB 452 hydraulic breaker provides further proof that innovative product design and technology can achieve higher performance with a reduced environmental impact. This includes lower fuel consumption, lower vibrations and less noise. Better utilisation of the hydraulic output from the carrier has been achieved through the highest of manufacturing standards and innovative percussive technology, such as EnergyRecovery . Atlas Copco’s energy recovery technology means that the SB 452 is the best performing breaker in its class. AIRScan: A highly accurate, independent survey and reporting system, which discovers where any energy drains in compressed air systems take place and identifies which actions can be taken to remedy or optimize the situation. Assembly tools: The development of energy efficient tools drives the transformation from pneumatic to electric tools. An electric tool system offers a more advanced fastening process together with a lower energy consumption compared to a pneumatic tools system. Also the new generation of pneumatic tools show a considerably lower air consumption which translates into huge energy savings annually.
  • . Community Engagement Atlas Copco is involved in various charity and community engagement projects, both on a Group-wide, and a local basis. Community engagement is cooperation with local communities by adding value to these communities with finance, resources and follow-up. For 25 years Atlas Copco has supported the employee-run organization Water for All , which raises funds to finance water-well drilling activities and equipment in order to supply clean drinking water to needy communities. By the end of 2008, the organization had almost 4 300 members. Estimates indicate that during 2008 up to 80 000 people were provided with a sustainable source of clean drinking water as a result of the financial contributions made by Water for All. In all Water for All has provided clean drinking water to approximately 1 million people in need. HIV/Aids is a fact of life in a number of the countries where Atlas Copco operates. In the southern part of Africa, Atlas Copco has taken an initiative for improving the health and well-being of employees suffering with HIV/AIDS within the company. In recognition of the huge burden to individuals who are HIV+, the local companies support not only the employee with counseling and antiretroviral drugs, but also one family member. This program started early in 2002 and by the end of 2008, had expanded to include South Africa, Zambia, Tanzania, Kenya, Zimbabwe with some very notable results. Plans are to expand into additional countries. In a number of countries, local Atlas Copco companies provide support to local schools to help increase the education level and to give more children a good start in life. In other areas, university scholarships are offered to talented students. Examples of such initiatives are found on all continents. Atlas Copco encourages the local companies around the world to react and respond immediately with relief aid when local communities are struck by natural disasters as earth quakes, inundations, fires, landslides etc. This kind of disaster relief may very well be an act of urgently shipping suitable equipment to the affected area. An example of this was the shipping of heavy equipment from Atlas Copco in Shanghai to the earthquake affected Sichuan province in 2008.
  • . Our brand promise Atlas Copco’s brand promise is “We are committed to your superior productivity through interaction and innovation”. The brand promise is put last in most of Atlas Copco’s presentations, to remind ourselves about or vision and our business values.
  • Atlas Copco Group Presentation 2009

    1. 1. Committed to Customer Value The Atlas Copco Group, 2009
    2. 2. Atlas Copco in a Snapshot <ul><li>A world leading provider of industrial productivity solutions. </li></ul><ul><li>Products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. </li></ul><ul><li>In close cooperation with customers and business partners, Atlas Copco innovates for superior productivity. </li></ul><ul><li>Headquartered in Sweden, the Group’s global reach spans more than 160 markets. </li></ul><ul><li>In 2008 Atlas Copco had 34 000 employees and annual revenues of approximately BSEK 74 (BEUR 7.7). </li></ul>
    3. 3. Leading Industrial Provider Construction Others 25% 22% 13% 6% Manufacturing Process Mining Services 26% 8% Sales per customer category
    4. 4. Innovative Solutions Products Services Knowledge
    5. 5. Products Industrial tools Compressors Construction and mining Aftermarket and rental
    6. 6. Services A long term partner
    7. 7. Knowledge Competence centers Product design Applications
    8. 8. Strong Brands
    9. 9. Global Reach Spans More Than 160 Markets Compressor Technique 48% Industrial Technique 10% Construction and Mining Technique 42% North America 18% Europe 39% Africa/ Middle East 12% 22% 9% Asia/ Australia South America Revenues per business area Revenues per geographic area
    10. 10. Worldwide Presence Production sites
    11. 11. The Atlas Copco Organization Executive Group Management and Corporate Functions Oil-free Air Industrial Air Portable Air Specialty Rental Gas and Process Compressor Technique Service Airtec Compressor Technique Construction and Mining Technique Industrial Technique Underground Rock Excavation Surface Drilling Equipment Drilling Solutions Secoroc Construction Tools Road Construction Equipment Geotechnical Drilling and Exploration Rocktec Atlas Copco Tools and Assembly Systems Motor Vehicle Industry Atlas Copco Tools and Assembly Systems General Industry Chicago Pneumatic Tooltec Customer Centers and Service Providers President and CEO Board of Directors
    12. 12. 2008 Results
    13. 13. Compressor Technique
    14. 14. World Leader in the Compressed Air Business Construction Others Manufacturing Process Mining Services Compressor Technique 36% 9% 14% 9% 6% 26% Sales per customer category
    15. 15. Industrial Compressors Compressor Technique
    16. 16. Portable Compressors Compressor Technique
    17. 17. Gas and Process Compressors and Expanders Compressor Technique
    18. 18. Quality Air Solutions™ Compressor Technique
    19. 19. Portable Generators Compressor Technique
    20. 20. Specialty Rental Compressor Technique
    21. 21. Compressor Technique Service Compressor Technique
    22. 22. 2008 Results North America 15% Europe 43% Africa/ Middle East 10% 25% 7% Asia/ Australia South America Compressor Technique
    23. 23. Construction and Mining Technique
    24. 24. Strong Focus on Efficiency Construction Others Mining Services Sales per customer category 5% 37% 2% 56% Construction and Mining Technique
    25. 25. Underground Rock Drilling, Loaders and Mine Trucks Construction and Mining Technique
    26. 26. Surface Drilling Equipment Construction and Mining Technique
    27. 27. Blasthole, water well, oil and gas Construction and Mining Technique
    28. 28. Rock Drilling Tools Construction and Mining Technique
    29. 29. Exploration and Ground Engineering Construction and Mining Technique
    30. 30. Construction Tools Construction and Mining Technique
    31. 31. Road Construction Equipment Construction and Mining Technique
    32. 32. 2008 Results North America 21% Europe 31% Africa/ Middle East 16% 21% 11% Asia/ Australia South America Construction and Mining Technique
    33. 33. Industrial Technique
    34. 34. Innovative Industrial Tools and Assembly Systems Construction Services & Others Manufacturing Process 84% 13% 1% 2% Sales per customer category Industrial Technique
    35. 35. Industrial Power Tools Industrial Technique
    36. 36. Assembly Systems Industrial Technique
    37. 37. Vehicle Service Power Tools Industrial Technique
    38. 38. 2008 Results North America 21% Europe 57% Africa/ Middle East 15% 2% 5% Asia/ Australia South America In 2005 the two professional electric tool divisions were divested, figures are restated. Industrial Technique
    39. 39. Shared Service across Businesses
    40. 40. Service Providers Financing Engineering support Administration
    41. 41. First in Mind—First in Choice ® Atlas Copco has a clear vision
    42. 42. Core Values .
    43. 43. Strategic Directions Growth: Organic and through acquisitions Innovations and continuous improvements Aftermarket
    44. 44. Focus on Corporate Responsibility
    45. 45. Competence Development 40 hours of training per year
    46. 46. Minimizing Environmental Impact AIRScan Assembly tools Hydraulic breaker
    47. 47. Community Engagement Education Water for All Disaster relief
    48. 48. We are committed to your superior productivity through interaction and innovation.

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