Atlas Copco Capital Markets Day 2021

Atlas Copco Capital Markets Day 2021

Capital Markets Day 2021

Vagner Rego, Business Area President

Compressor Technique

Agenda

May 27, 2021

Atlas Copco Capital Markets Day3

Facts in brief

The market and

business fundamentals

Strategy for growth

Summary

1

2

3

4

Facts in brief

Compressor Technique

Market trends

• Continued focus on energy efficiency

• CO2 emission reduction and energy recovery

• Total solution and total life-cycle cost

• Digitalization and automation

• New applications for compressed air

May 27, 2021


ROCE84%

0%

5%

10%

15%

20%

25%

30%

0

2 500

5 000

7 500

10 000

12 500

15 000

Q12018

Q2 Q3 Q4 Q12019

Q2 Q3 Q4 Q12020

Q2 Q3 Q4 Q12021

Orders received, MSEK Revenues, MSEK Operating margin, %

Orders received – local currency Q1 2021

6May 27, 2021

Atlas Copco Capital Markets Day

SHARE OF ORDERS :

Growth

+15%

Growth

+9%

Growth

+11%

Growth

+7%

Growth

+18%

25% 42% 33%

The market andbusiness fundamentals

The market we operate in

• 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 Gasses

• Strong service organization‒ Global market coverage

May 27, 2021


General manufacturing

26%

Automotive

2%

Process industry

27%

Construction

12%

Service

11%

Other

19%

Orders Received 2020:

47 BSEK

Electronics

3%

May 27, 2021


Traditional Industries

May 27, 2021


…many more

Automotive

Textile

Brewery

Pharmaceutical

Medical

PET Bottle Blowing

Food and Beverage

Wastewater treatment

Continued investments in traditional industries:

➔ GDP/Capita Growth

➔ Energy & CO2 reduction

New Technology Industries

May 27, 2021


…many more

Laboratories

Electronics

Battery cell production

Robotics

Packaging Automation

Process Automation

Laser Cutting

Control Engineering

➔ Automatization & Industry 4.0 brings lots of opportunities for pneumatic controls and compressed air

➔ Use of Industrial Gasses

Example: Automotive IndustryShift to electric driven cars

May 27, 2021


• Increased demand for battery cell production in the coming years

• Huge investments in new factories to produce electric cars

Compressed air and industrial gasses are needed in every part of the process

May 27, 2021


Example: Automotive IndustryElectrical vehicle battery production process

May 27, 2021


COMPRESSED AIR NEEDS

NITROGEN NEEDS

Raw Materials

Cell Production

Module Assembly

Pack Assembly

Vehicle Assembly

Dry, CO2 free air to protect the raw materials from ageing

Dry process air and instrument air

Recovered compressor heat used for the process and heating the building

Dry and CO2 free N2: creating an inert environment to increase product quality

High need Medium need Low need

Strategy for growth

Strategy for profitable growth

16May 27, 2021

Atlas Copco Capital Markets Day

• Innovation forreduced TCO

• ExpandingApplications

• Increased Presence

• Service Offering

• Digitalization

GROWTHOPERATIONAL

EXCELLENCE

• ModularProduct Design

• Lean Management

• Local for Local

• Digitalization of processes

100%OIL FREE

ATLAS COPCO COMPRESSOR TECHNOLOGY

Our Product Offering


May 27, 2021

OILLUBRICATED

TECHNOLOGIES

Screw

Piston

Scroll

PRESSURE

POWER

LARGESTPRESSURE RANGE

LARGESTPOWER RANGE

AIR QUALITY

Dryers

Filters

Ancillaries

Condensatetreatment

Nitrogen

Oxygen

Energyrecovery

Connectivity

Centralcontrol

Industry 4.0integration

Global presence

World class logistics

Service plans

Certified technicians

Diagnostic services

1 kW 20 MW

0.1 bar 400 bar

Tooth

Lobe

Centrifugal

INDUSTRIALCOOLING

TEMPERATURE

-20°C +40°C

THERMAL MGMT

OilWater

Air

MONITORING& CONTROL

SERVICE

May 27, 2021


Compressed air carbon emissions

May 27, 2021


2021 2022 2023 2024 2025 2026 2027 2028 2028 2030 2031 2032 2033 2035

Productivity Power Required CO2

ENERGY RECOVERYIMPROVED ENERGY EFFICIENCYECONOMIC GROWTH

May 27, 2021


HydrogenA huge potential for a decarbonized economy

Hydrogen

May 27, 2021


A sustainable energy shiftInitiatives to decarbonize the energy sector to meet net carbon zero emissions target by 2050

Hydrogen fuel technology offers a role in global decarbonation

Projected an interesting compressor market for mobility + heat & power applications

Renewableelectricity

Grid

ELECTRICITY

ELECTROLYZER

Shipping

By-product

Biomass-based

hydrogenImportedhydrogen POWER BUILDINGS

TRANSPORT

INDUSTRY

High-gradeheat

(>650OC)

IndustryfeedstockStorage

(salt caverns, storage tanks)

Fuel-cell trains

Fuel-cellelectric vehicles

Heavy-duty

AviationRe-electrification(Power-to-Power)

CO2 (CC)

Methanation Blending

Gas grid

Atlas Copco Core Technologies

Hydrogen Portfolio in Atlas Copco

May 27, 2021


SYSTEMMONITORING & CONTROL

ENERGYRECOVERY

Internal

External

NITROGENGENERATION

PSA

Membrane

AIRTREATMENT

Refrigeration

Desiccant

Drum Type

Filtration

OIL-FREE PISTONOIL-FREE HYDRAULIC

HP

OILINJECTED

SCREW

OILFREE

SCREW

OILFREE

TURBO

OIL FREESCREW

OIL FREE CENTRIFUGAL

COMPRESSION TREATMENT GENERATION SYSTEM OPTIMIZATION

LP

MPOIL

FREETOOTH

OIL FREELOBE

HP

COMPRESSION TREATMENT GENERATION SYSTEM OPTIMIZATION

LP

MP

Low Pressure

May 27, 2021


Revenue DevelopmentLobe

Screw

Centrifugal

2018 2019 2020 2021

ZL 1-2 ZL 3-4 ZL new

ZS 4 VSD

ZHL 7 ZHL 8ZB 5-6 VSD+

ZE 6 VSD

ZM 4-6

ZS 4 VSD+ ZS 5 VSD

2016 2017 2018 2019 2020

Industrial Cooling

May 27, 2021


Watercooling

Product range of chillers and coolers with optional adiabatic pre-cooling and freecooling.

Optimized performance and energy savings for industrial process cooling.

Thermal Management

Precise temperature control of water, air and oil.

Increased customer productivity and production quality

Airchiller

10-200 kW

Temp control unit

5-150 kW

Temp ABOVE

ambient

Cooler

60-900 kW

Temp BELOWambient

Chiller

5 kW 1250 kW

Air

flo

w r

ate

10

00

-20

.00

0 m

³/h

Flu

id t

em

p r

ange

90

-30

0°C

Innovation

May 27, 2021


2020

2018

2019

2017

2016 >25

>30

>35

>40

>55

New products

CeradesTM

A revolution in dessicantdryer technology

May 27, 2021


May 27, 2021


ServiceConnecting you toan easier life

May 27, 2021



May 27, 2021

Compressor Technique – Service

* Figures for the years 2010-2016 are best estimated numbers, as the restatements for IFRS15 are not fully reconciled.

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 2019 2020

Equipment revenues, MSEK

Service revenues, MSEK

Service, share of revenues, %

Average yearly growth:

Service: 7%Equipment: 5%

Customer Requirements

May 27, 2021


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 footprintTRANSPARENCY

100% Optimized

100% Connected

100% Serviced

OPTIMIZATION

Strategy for profitable growth – Service


Our Service Offering

May 27, 2021

Hig

hLo

w

High LowLIFE CYCLE COST

MA

CH

INE

AV

AIL

AB

ILIT

Y

GENUINE PARTS

CUSTOMERSUPPORT PLANS

MONITORING &CONTROL

Managing the compressor

room

Performance Guaranteed

Energy & CO2

reduction

Operational transparency

Optimization

May 27, 2021


Leak Detection

Energy Audit

Air Quality

Comprehensive report identifying potential

energy savings

Monitor the savings

On-line recommendations

Central Controllers

Product Upgrades

Energy Recovery

AIRSCAN REPORTING SAVINGS FOLLOW UP

SMARTLINK

Connectivity

May 27, 2021


>200.000CONNECTIONS

<30kW compressors& competitors

SMARTCLAMP SMARTBOX ELEKTRONIKON EQUALIZER 4.0 OPTIMIZER 4.0

SMARTLINK

>30kW compressors Compressor Room

Benefits

Connectivity

May 27, 2021


Transparency oncompressor operation

Recommendations(efficiency improvements)

Operational Efficiency

Sales Leads

➔ Data enabled service offering (Performance Guaranteed)

➔ Remote Diagnostics

➔ Improved machine design and reliability

Increased number ofService Contracts

CUSTOMER ATLAS COPCO

May 27, 2021


Operational EfficiencySmart Factories –Industry Connect

May 27, 2021


May 27, 2021


People Development

May 27, 2021


Learning Organization

Digital learning to reduce

time to competence

Never Stop Learning

Employee Engagement

Performance enablement

Employee well-being is priority

Safety comes first

Talent & Acquisition pipeline

Diversity & Inclusion network

target: 30% women by 2030

Master in Marketing & Sales

Leadership

Talent pipeline for future

Presidents and Managers

Coaching for performance

Summary – Compressor Technique

May 27, 2021


• 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 uponother factors could have a material effect on the actual outcome. Such factors include, but are not

limited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of

competing products and their pricing, product development, commercialization and technological difficulties, interruptions in

supply, and major customer credit losses.”

Documents

Atlas Copco Capital Markets Day 2021