Power Technique Andrew Walker, Business Area President Capital - PowerPoint PPT Presentation

Power Technique Andrew Walker, Business Area President Capital Markets Day 2018

Agenda 1 1. Facts in brief 2 1. Trends and driving forces 3 1. Focus and priorities 4 1. Innovation in reality 5 1. Summary 2 November 15 2018 Atlas Copco Capital Markets Day

Power Technique ROCE 25% Growth drivers ORDERS, REVENUES AND OPERATING MARGIN • Increased infrastructure investments 4 000 24% • Localization of our products to meet 3 000 18% local legislations • Innovation in equipment 2 000 12% • Expanding the service offer • Strengthen market position in pumps, 1 000 6% generators and light towers • Develop a service network for 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 indirect channels 2016* 2016* 2016* 2016* 2017 2017 2017 2017 2018 2018 2018 Orders received, MSEK Revenues, MSEK • Environmental regulations Operating margin, % Adjusted operating margin, % *2016 quarterly figures shows best estimated numbers, as effects of the split of the Group and restatements for IFRS 15, are not fully reconciled. 3 November 15 2018 Atlas Copco Capital Markets Day

Orders received – local currency Q3 2018 Q3 YoY vs. Q2 SHARE OF ORDERS 29% 51% 20% RECEIVED YEAR TO DATE: +24% +7% -2% +14% -11% 4 November 15 2018 Atlas Copco Capital Markets Day

Focused on construction and so much more… Industries served include: Events Petrochemical Construction Water well, oil & gas Offshore Emergency Relief Manufacturing Power plants Mining Quarries 5 November 15 2018 Atlas Copco Capital Markets Day

Power Technique divisions Portable Air Power Power Technique Specialty Rental and Flow Service Inc. Tools 6 November 15 2018 Atlas Copco Capital Markets Day

Diesel emission regulations Trends and driving forces (particles / nox exhaust) Stage V (2019) Global regulations Tier 4 Stage IV Stage III & IV Other relevant types of regulations • Pressure vessels • Safety • Road homologation • Noise • …. 7 November 15 2018 Atlas Copco Capital Markets Day

Oil & Gas Construction Trends and driving forces Investments Mining Manufacturing Global trends • Government investments in infrastructure drive • Consolidation rental market • Increased demand for service (focus on their core) • Digitalization 8 November 15 2018 Atlas Copco Capital Markets Day

Summary of strategic focus areas Channel Portable air and management handheld tools Recurring Market business coverage Developing generator Digitalizing customer and pump market experience 9 November 15 2018 Atlas Copco Capital Markets Day

Channel management Three main segments Dealers Rental companies Direct to end-users 10 November 15 2018 Atlas Copco Capital Markets Day

Recurring business 2 service divisions SHARE OF REVENUES 2017 Power Service Technique 15% Service Service, Equipment 23% Specialty 62% Rental Specialty Rental 11 November 15 2018 Atlas Copco Capital Markets Day

Developing generator and pump market Profitable niches Significant player in flow Innovate to grow Become Develop service business market share in market leader in selected niches pumps generators in light towers Selected acquisitions to develop market share 12 November 15 2018 Atlas Copco Capital Markets Day

Portable air and handheld tools Consolidate our number 1 position for portable air compressors Regionalized product Using boosters offering for local needs Develop complete to focus on and legislation electric compressor oil & gas segment Dealer management tools portfolio Roll out Stage V Focus on handheld tools 13 November 15 2018 Atlas Copco Capital Markets Day

Market coverage Geographic footprint gives increased versatility Generators Air compressors Surface pumps and breakers Light Towers Boosters Submersible Pumps Oil free portables Air compressors Air compressors Generators Generators Pumps Light towers Pumps Air compressors Air compressors Air compressors Generators Generators Generators Pumps Light towers Pumps Breakers 14 November 15 2018 Atlas Copco Capital Markets Day

Digitalizing customer Account experience Credit card payment Shop Online Parts Online Spare parts ACT! Power Business Online Connect YouTube Spare Instruction books, parts list FleetLink videos and manuals Machine Technical information support Toolbox Warranty Online Machine Online Parts Online 15 November 15 2018 Atlas Copco Capital Markets Day Call center myQuest

Innovation for growth Battery technology in light towers Containerized efficient Twin-engine generator for Europe Extended high-flow pump range New portable efficient electric compressors Oil-free rental compressor Full range of Monitoring control Variable speed generator As standard on select new compact utility (QAS VSG) units retrofitting field units compressors 16 November 15 2018 Atlas Copco Capital Markets Day

Innovation in reality 17 November 15 2018 Atlas Copco Capital Markets Day

Innovation: portable electric E-Air 250 air compressor range Electric motor driven Free air delivery: 247 cfm – 117 l/s Pressure: 174 psig – 12 bar ½ NOISE 18 November 15 2018 Atlas Copco Capital Markets Day

Summary Grow rental Increase product business in Consolidate innovation to Become adjacent our number 1 grow organically market leader segments position in portable in generators in light towers air compressors Significant player in selected flow Selected segments acquisitions ‒ Pumps to develop Develop flow business service business in selected product segments ‒ Pumps ‒ Generators ‒ Light towers 19 November 15 2018 Atlas Copco Capital Markets Day

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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.” 21 November 15 2018 Atlas Copco Capital Markets Day