Ronnie Leten Atlas Copco's Annual General Meeting April 26, 2017 - PowerPoint PPT Presentation

Ronnie Leten Atlas Copco's Annual General Meeting April 26, 2017

Mixed business climate

Service development Service 44 %

Acquisitions Scales Industrial Technologies CSK Varisco Inc January March April May June July August Sept Oct Nov Dec February Capitol FIAC Air et Kohler Bondtech Roxel Schneider Leybold Phillip-Tech Air Power Research Fluides Druckluft Rental AS Druckluft of Nebraska Equipment Lyonnais Compressor Technique Industrial Technique Construction Technique Vacuum Technique

Five business areas COMPRESSOR VACUUM INDUSTRIAL MINING AND ROCK CONSTRUCTION TECHNIQUE TECHNIQUE TECHNIQUE EXCAVATION TECHNIQUE TECHNIQUE New

Divestment

Record year 101.4 19.8 18.1 billion SEK billion SEK billion SEK OPERATING OPERATING REVENUES PROFIT CASH FLOW

Share price development Atlas Copco OMX Index Atlas Copco A +33.2% Atlas Copco B +27.3% OMXS + 5.8%

First quarter results 2017 31.7 ORDERS RECEIVED billion SEK 28.0 ORDERS INVOICED billion SEK 20.4% OPERATING MARGIN

Five strategic pillars Operational Presence Innovation Service People Excellence

Priorities for sustainable profitable growth Operational Presence Innovation Service People Excellence SUSTAINABLE PROFITABLE GROWTH ETHICS SAFETY AND SET AMBITIOUS TARGET SAFETY WELL-BEING COMPETENCE INNOVATION RESOURCES RESOURCES Values and Business Code of Practice

Ethical behavior…

…in every corner of the world

Safety and wellbeing Work-related accidents, number per one million working hours 6 5 4 Percentage (%) 3 5,4 5,3 4,7 2 3,6 3,5 1 0 2012 2013 2014 2015 2016

Fight against HIV and AIDS

Improving working culture

Building competent teams

Innovation a top priority

19 Industrialized entrepreneurship Logistics Finance Brands Sales Technological channels competences

Two prestigious awards John Munck Peter Wallenberg

Reengineered breaker 50 % Energy consumption 25 % Lighter Great ergonomics

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Using the latest technology 1920 2017

Delivering peace of mind

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Award winner

Remote mining

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Digitalization

Innovative assembly solutions

A life-cycle perspective Customer productivity Energy consumption

Continuously challenging efficiency Compressors Scroll pump for used in Light tower Grinders for manufacturing manufacturing manufacturing for civil Industry Industry engineering industry 2012 2013 2014 2015 Compressors Vacuum Assembly tools for Generators for process manufacturing for process pumps for industry manufacturing Industry industry industry

Developing and launching new solutions Drill rigs Vacuum pumps for mining for manufacturing 2016 Breakers Tools for for civil engineering manufacturing industry

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Resource efficiency Energy Material use Water use

United Nations’ sustainable development goals

Seven relate directly to Atlas Copco

Water for All

Splitting the Group in two

Two world class companies NewCo Atlas Copco 12 000 * BSEK 28 * 33 000 * BSEK 74 * Mining Civil engineering Employees Revenue Industry Employees Revenue * Approximate figures at the announcement

41 One share becomes two shares

Changing President and CEO