SLIDE 1
Capital Markets Day 2019 Vagner Rego, Business Area President
Compressor Technique
Agenda
November 26, 2019 Atlas Copco Capital Markets Day
Facts in brief 1 The market and business fundamentals 2 Strategy for growth 3 Summary 4
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Compressor Technique Capital Markets Day 2019 Vagner Rego, Business - - PowerPoint PPT Presentation
Compressor Technique Capital Markets Day 2019 Vagner Rego, Business - - PowerPoint PPT Presentation
Compressor Technique Capital Markets Day 2019 Vagner Rego, Business Area President Agenda 1 Facts in brief 2 The market and business fundamentals 3 Strategy for growth 4 Summary November 26, 2019 2 Atlas Copco Capital Markets Day
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SLIDE 3
Facts in brief
SLIDE 4
Compressor Technique
Atlas Copco Capital Markets Day
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Growth drivers Orders, revenues and operating margin
- Industrial production
- Need for reduced energy consumption
- Innovation
- Leverage investments in presence
- Service offer
- Further expand the core organically
and with acquisitions
- Digital value creation
- People development
November 26, 2019
ROCE 93%
0% 5% 10% 15% 20% 25% 30% 2 500 5 000 7 500 10 000 12 500 15 000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
Orders received, MSEK Revenues, MSEK Operating margin, %
SLIDE 5
Orders received – Local currency Q3 2019
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November 26, 2019
27% 41% 32%
SHARE OF ORDERS RECEIVED YEAR TO DATE: = Q3 Year-on-Year = Q3 VS. Q2
+7% % +7% +13%
- 5%
+15%
SLIDE 6
- Compressed air is often referred to as the 4th utility
‒ We serve all industry segments
- Largest technology range
‒ Application driven solutions ‒ Small to big industries
- Providing Total Solutions
‒ Quality air treatment ‒ Industrial Gases
- Strong service organization
‒ Global market coverage
The market we operate in
November 26, 2019 Atlas Copco Capital Markets Day
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18% 26% 29% 11% 2% 14%
General manufacturing Motor Vehicle Process industry Construction Service Other
Orders received by customer category
* Share of orders received 12 months ending September 2019.
SLIDE 7
Traditional industries
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…
many more
Automotive Textile Marine Brewery Oil & Gas Pharmaceutical Medical Railway Pulp and Paper PET Bottle Blowing Food and Beverage Fish Farming Wastewater treatment Chemical and Petrochemical
SLIDE 8
New technology industries
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Laboratories Electronics Laser Cutting Battery cell production Process Automation Robotics Packaging Automation Control Engineering
…
many more
Automatization & Industry 4.0 bring lots of opportunities for pneumatic controls and compressed air
SLIDE 9
Applications
Waste water treatment – Blower technologies
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Traditional solution Simple & reliable Energy efficient solution Low cost of ownership Premium solution Lowest cost of ownership
SLIDE 10
On-site Nitrogen Generator
Applications
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Total Cost N2/O2 consumption On-site investment Bottle supply Liquid supply On-site generation
Proven technology
‒ Simple ‒ Reliable ‒ Durable
Purity in line with application needs Low operating costs
SLIDE 11
ATLAS COPCO COMPRESSOR TECHNOLOGY
Our product offering
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November 26, 2019
OIL
LUBRICATED
100%
OIL FREE
TECHNOLOGIES
Screw Piston Scroll
PRESSURE POWER
LARGEST PRESSURE RANGE LARGEST POWER RANGE
AIR QUALITY
Dryers Filters Ancillaries Condensate treatment Nitrogen Oxygen
MONITORING & CONTROL
Energy recovery Connectivity Central control Industry 4.0 integration
SERVICE
Global presence World class logistics Service plans Certified technicians Diagnostic services 1 kW 20 MW 0.1 bar 400 bar Tooth Lobe Centrifugal
SLIDE 12
Recent product launches
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More than 40 new products launched during the last 12 months
November 26, 2019
SLIDE 13
Sustainable profitable growth
SLIDE 14
GROSS DOMESTIC PRODUCT PER CAPITA
Trends and driving forces
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SUSTAINABILITY
SLIDE 15
Trends and driving forces
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November 26, 2019
ENERGY CONSUMPTION
INVESTMENT INSTALLATION MAINTENANCE
ENERGY SAVINGS
SLIDE 16
Focus and priorities
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November 26, 2019
RE-PURCHASE PURCHASE SELECTION INSPIRE UNDERSTAND ATTRACT DELIVERY INSTALLATION MAINTAIN RECOMMEND
USE BUY
SLIDE 17
Customer requirements
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INCREASED
PRODUCTIVITY
ELIMINATE
RISKS
REDUCED
OPERATING COST
PROTECT
ENVIRONMENT
Maximum Uptime Performance Increase Guaranteed Air Quality Service Agreements Energy Savings Eliminate Breakdown Cost Energy Savings Environmental Footprint
SLIDE 18
Strategy for profitable growth – Summary
GROWTH
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November 26, 2019 Atlas Copco Capital Markets Day
Innovation for Reduced TCO Expanding Applications Increased Presence Service Offering Digitalization Modular Product Design Lean Management Digitalization of Processes OPERATIONAL EXCELLENCE
SLIDE 19
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ENERGY COST PRODUCTIVITY
CUSTOMER VALUE GA 90-160 (VSD+)
SLIDE 20
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SLIDE 21
Reliability
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– Separate cool oil flow to bearings – Longer bearing life – IP66 Drive train (toughest conditions) – Oil cooled motors (no greasing)
SLIDE 22
Efficiency
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– Smart Injection oil system – Optimum efficiency – IE4 & IE5 motors – Highest efficiency classes
SLIDE 23
Serviceability
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SLIDE 24
GA90 – 160(VSD+)
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5% energy reduction Saving 3,360 euro per annum VSD 35% reduction compared to fixed speed compressors TOTAL 40% Saving26,880 euro per annum compared to old fixed speed range
SLIDE 25
Environmental savings
40%
energy saving =
268,800 kWh
- f electricity or
carbon dioxide reduction of
190 metric tons
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Calculation based on 160 Kw, 8000 Operating Hours, Electrical Cost 0.1 Euro, working 70% average load
SLIDE 26
Strategy for profitable growth – Service
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November 26, 2019
Increase Customer Productivity
Well maintained compressed air installations with increased reliability
- - - - - - - - - - - - - - - - - - - - - - - -
Guaranteed maximum uptime through fast and professional service response
Interaction
Reduce Total Operating Cost
Energy savings through optimizing the efficiency of the complete compressed air installation
- - - - - - - - - - - - - - - - - - - - - - - - - -
Service Plan agreements to ensure optimal compressor
- perations
SLIDE 27
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November 26, 2019
Compressor Technique – Service
CAGR Service 8% Equipment 5%
0% 10% 20% 30% 40% 50% 60%
5 000 10 000 15 000 20 000 25 000 30 000
2010 2011 2012 2013 2014 2015 2016 2017 2018
- Sep. 2019
12M
Equipment revenues, MSEK Service revenues, MSEK Service, share of revenues, %
SLIDE 28
Strategy for profitable growth – Service
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Our service offering
November 26, 2019
High Low High Low
LIFE CYCLE COST MACHINE AVAILABILITY
GENUINE PARTS CUSTOMER SUPPORT PLANS AIR OPTIMIZATION MONITORING & CONTROL
SLIDE 29
Strategy for profitable growth – Service
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Connectivity
November 26, 2019
>130.000
CONNECTIONS
More Service Leads Customer Loyalty >98% Uptime Additional Revenue
SLIDE 30
Employee Engagement
People Development
Leadership Talent Acquisition & Pipeline Learning Organization
People Key Focus Areas
71% employees believe there is
- pportunity for professional
development, mobility and growth. 73% employees believe we have a culture of respect, fairness and openness. >85% usage of curated learning paths developed for target employee populations. LinkedIn learning available throughout the organization. Top 350 leaders all have an individual development plan. Leadership development courses in place. Talent pipeline for future BLM’s and GM’s. Development plans for potential successors for business critical roles. Diversity & inclusion : Master in Marketing & Sales programs.
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SLIDE 31
Summary – Compressor Technique
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- Diversified market place
- Growing number of applications
- Broad product portfolio
- Focus on innovation
- Complete solution provider
- People are key
SLIDE 32
atlascopcogroup.com
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Forward looking statements
“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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