20191126 Capital Markets Day 2019- Compressor Technique...Nov 26, 2019 · CUSTOMER VALUE GA 90-160 (VSD+) November 26, 2019 Atlas Copco Capital Markets Day 20. Reliability November

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 growth3

Summary4

2

Facts in brief

Compressor Technique

Atlas Copco Capital Markets Day4

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

ROCE93%

0%

5%

10%

15%

20%

25%

30%

0

2 500

5 000

7 500

10 000

12 500

15 000

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Orders received, MSEK Revenues, MSEK Operating margin, %

Orders received – Local currency Q3 2019


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%

• 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


18%26%

29%

11%

2%

14%

General manufacturing

MotorVehicle

Process industry

Construction

Service

Other

Orders received by customer

category

* Share of orders received 12 months ending September 2019.

Traditional industries

November 26, 2019


…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

New technology industries

November 26, 2019


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 andcompressed air

Applications Waste water treatment – Blower technologies

November 26, 2019


Traditional solution

Simple & reliable

Energy efficient solution

Low cost of ownership

Premium solution

Lowest cost of ownership

On-site Nitrogen Generator

Applications

November 26, 2019


Total Cost

N2/O2 consumption

On-site investment

Bottle supply Liquid supply On-site generation

Proven technology

‒ Simple

‒ Reliable

‒ Durable

Purity in line withapplication needs

Low operating costs

ATLAS COPCO COMPRESSOR TECHNOLOGY

Our product offering


November 26, 2019

OILLUBRICATED

100%OIL FREE

TECHNOLOGIES

Screw

Piston

Scroll

PRESSURE

POWER

LARGESTPRESSURE RANGE

LARGESTPOWER RANGE

AIR QUALITY

Dryers

Filters

Ancillaries

Condensatetreatment

Nitrogen

Oxygen

MONITORING& CONTROL

Energyrecovery

Connectivity

Centralcontrol

Industry 4.0integration

SERVICE

Global presence

World class logistics

Service plans

Certified technicians

Diagnostic services1 kW 20 MW

0.1 bar 400 bar

Tooth

Lobe

Centrifugal

Recent product launches


More than 40 new products launched during the last 12 months

November 26, 2019

Sustainable profitable growth

GROSS DOMESTIC PRODUCT PER CAPITA

Trends and driving forces

November 26, 2019


SUSTAINABILITY

Trends and driving forces


November 26, 2019

ENERGY CONSUMPTION

INVESTMENT

INSTALLATION

MAINTENANCEENERGY SAVINGS

Focus and priorities


November 26, 2019

RE-PURCHASE PURCHASESELECTION

INSPIRE

UNDERSTAND

ATTRACTDELIVERY

INSTALLATION

MAINTAIN

RECOMMEND

USE BUY

Customer requirements

November 26, 2019


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

Strategy for profitable growth – Summary

GROWTH

18November 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

November 26, 2019


ENERGY COST

PRODUCTIVITY

CUSTOMER VALUE GA 90-160 (VSD+)

November 26, 2019


Reliability

November 26, 2019


– Separate cool oil flow to bearings

– Longer bearing life

– IP66 Drive train (toughest conditions)

– Oil cooled motors (no greasing)

Efficiency

November 26, 2019


– Smart Injection oil system

– Optimum efficiency

– IE4 & IE5 motors

– Highest efficiency classes

Serviceability

November 26, 2019


GA90 – 160(VSD+)

November 26, 2019


5% energy reduction

Saving 3,360 euro per annum

VSD 35% reduction compared tofixed speed compressors

TOTAL 40%Saving 26,880 euro per annum

compared to old fixed speed range

Environmental savings

40%energy saving =

268,800 kWh

of electricity or

carbon dioxide

reduction of

190 metric tons

November 26, 2019


Calculation based on 160 Kw, 8000 Operating Hours, Electrical Cost 0.1 Euro, working 70% average load

Strategy for profitable growth – Service


November 26, 2019

Increase Customer Productivity

Well maintained compressed air installations withincreased 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 operations


November 26, 2019

Compressor Technique – Service CAGR Service

8%Equipment

5%

0%

10%

20%

30%

40%

50%

60%

0

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, %



Our service offering

November 26, 2019

Hig

hLo

w

High LowLIFE CYCLE COST

MA

CH

INE

AV

AIL

AB

ILIT

Y

GENUINE PARTS

CUSTOMERSUPPORT PLANS

AIR OPTIMIZATION

MONITORING & CONTROL



Connectivity

November 26, 2019

>130.000CONNECTIONS

More Service Leads

Customer Loyalty

>98% Uptime

Additional Revenue

Employee Engagement

PeopleDevelopment

Leadership

Talent Acquisition& Pipeline

Learning Organization

People Key Focus Areas

71% employees believe there is opportunity 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.

November 26, 2019


Summary – Compressor Technique

November 26, 2019


• Diversified market place

• Growing number of applications

• Broad product portfolio

• Focus on innovation

• Complete solution provider

• People are key

atlascopcogroup.com

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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Documents

20191126 Capital Markets Day 2019- Compressor Technique...Nov 26, 2019 · CUSTOMER VALUE GA 90-160 (VSD+) November 26, 2019 Atlas Copco Capital Markets Day 20. Reliability November