Annual Report 2023
In the Atlas Copco Group, we empower our
customers to grow and drive society forward.
We develop technology that transforms the
future, and our innovative products, solutions
and services are a key part of most industries.
Electronics, medical research, renewable
energy, food production, and infrastructure
are just a few examples.
This annual report reflects the Group’s mission
of creating sustainable, profitable, inclusive
growth. It integrates financial, sustainability,
and governance information to describe Atlas
Copco Group in a comprehensive and cohesive
manner.
Introduction 1 Summary of 2023
2 A decentralized group with four business areas
3 President and CEO
This is
Atlas Copco
Group
5 This is Atlas Copco Group
6 Our targets
7 This is how we do business
11 Creating lasting value for all stakeholders
The year in
review
12 The year in review
20 Business area: Compressor Technique
23 Business area: Vacuum Technique
26 Business area: Industrial Technique
29 Business area: Power Technique
32 A sustainable approach to delivering lasting value
36 Climate and environment
45 EU Taxonomy regulation disclosures
51 Social responsibility
58 Business conduct
61 About the sustainability report
62 GRI content index
66
Auditor’s limited assurance report on
Atlas Copco AB’s sustainability report
67 Risks, risk management and opportunities
72 The Atlas Copco AB share
Governance 74 Corporate governance
78 Board of Directors
80 Group Management
82 Internal control over reporting
Financials 85 Financial statements (Atlas Copco Group)
89 Notes (Atlas Copco Group)
130 Financial statements (Parent)
133 Notes (Parent)
Other
information
144 Signatures of the Board of Directors
145 Auditor’s report
149 Financial definitions
150 Four years in summary
151 Contact information
Statutory sustainability report and
external review
Atlas Copco Group reports on its sustainability work
for 2023 in accordance with GRI Standards, which
together with the EU Taxonomy regulation disclo-
sures, on pages 45–50, constitutes the Group’s statu-
tory sustainability report. Ernst & Young have
expressed their opinion that a statutory sustainability
report has been prepared according to the Swedish
Annual Accounts Act, and they have performed a lim-
ited review of the sustainability report according to
GRI, see page 66. More information can be found at:
www.atlascopcogroup.com.
Notice
The amounts in the report are presented in MSEK
unless otherwise indicated and numbers in parenthe-
ses represent comparative figures for the preceding
year. The figures presented in this report refer to
continuing operations unless otherwise stated.
Atlas Copco AB is a public company. Atlas Copco AB
and its subsidiaries are often referred to as Atlas
Copco Group, the Group or the company.
Any mentioning of the Board of Directors or the Board
refers to the Board of Directors of Atlas Copco AB.
In the Group, there are many strong brands driving
the success of our business. When describing the
Group, and not specific brands or entities, we refer
to Atlas Copco Group.
Forward-looking statements
Some statements in this report are forward-looking,
and the actual outcomes could be materially different.
In addition to the factors explicitly discussed, others
could have a mate rial effect on the actual outcomes.
Such factors include, but are not limited to, general
business conditions, fluctuations in exchange rates
and interest rates, political and geopolitical develop-
ments, the impact and pricing of competing products,
product development, commercial ization and techno-
logical difficulties, supply-chain interruptions, and
major customer credit losses.
The annual report for the Group and the parent company can be found on pages 5–65,
67–71 and 74–144, excluding the quarterly data on page 101. The corporate
governance report examined by the auditors can be found on pages 74–83.
Sustainability information that has been reviewed by the auditors can be found
on pages 5–11, 32–44, and 51–65. This information, together with the EU Taxonomy
disclosures on pages 45–50, constitutes the Group’s statutory sustainability report.
Cover image:
The flow drill fastening technique from our K-Flow product line is widely used in the
automotive industry. The product line is developed by the Atlas Copco Industrial
Assembly Solutions division, within the Industrial Technique business area.
Atlas Copco Group 2023
Record orders, record revenues and operating profit
Orders received, revenues and
operating margin
0
50 000
100 000
150 000
200 000
20232022202120202019
0
10
20
30
40
MSEK %
Operating cash flow and return
on capital employed
0
7
14
21
28
35
2020201920182017*
%
0
7
14
21
28
35
0
5 000
10 000
15 000
20 000
25 000
20232022202120202019
0
10
20
30
40
50
Operating cash flow and return on capital employed
2023 är operating cash flow: 23192
Return on cap empl. är 30%
MSEK %
Orders received, MSEK
Revenues, MSEK
Operating margin, %
Operating cash flow, MSEK
Return on capital employed, %
Key financial data
MSEK 2023 2022 2021 2020 2019
Orders received 170 627 158 092 129 545 100 554 106 104
Revenues 172 664 141 325 110 912 99 787 103 756
EBITDA 44 852 36 549 29 025 24 335 26 597
– in % of revenues 26.0 25.9 26.2 24.4 25.6
EBITA
1)
39 242 31 956 25 015 20 474 22 900
– in % of revenues 22.7 22.6 22.6 20.5 22.1
Operating profit 37 091 30 216 23 559 19 146 21 897
– in % of revenues 21.5 21.4 21.2 19.2 21.1
Adjusted operating profit 38 217 30 065 24 246 19 998 22 677
– in % of revenues 22.1 21.3 21.9 20.0 21.9
Profit before tax 36 442 30 044 23 410 18 825 21 572
– in % of revenues 21.1 21.3 21.1 18.9 20.8
Profit for the year 28 052 23 482 18 134 14 783 16 543
Basic earnings per share, SEK 5.76 4.82 3.72
2)
3.04
2)
3.40
2)
Diluted earnings per share, SEK 5.75 4.81 3.71
2)
3.04
2)
3.40
2)
1)
Operating profit excluding amortization of intangibles related to acquisitions.
2)
Adjusted for share split.
Operating
margin:
21.5% (21.4)
Operating cash flow:
MSEK 23 192
(17 099)
Revenues:
MSEK 172 664
+22%
Return on
capital employed:
30% (29)
Dividend/earnings per share, average
3)
including discontinued operations
0
10
20
30
40
50
60
3 years5 years10 years
Goal
%
Dividend policy history
–2003 30–40% of earnings
2003–2011 40–50% of earnings
2011– about 50% of earnings
3)
Dividend for the fiscal year 2023
is based on the proposal from
the Board of Directors.
Summary of 2023
atlas Copco Group 2023 1
Introduction
• Summary of 2023
A decentralized group with
four business areas
President and CEO
This is Atlas Copco Group
The year in review
Financials
Other information
A decentralized group with four business areas
atlas Copco Group enables technology that transforms the future.
We innovate to develop products, services, and solutions that are
key to our customers’ success. our four business areas offer com-
pressed air and gas solutions, vacuum solutions, energy solutions,
dewatering and industrial pumps, industrial power tools, and
assembly and machine vision solutions. In 2023, the Group had
revenues of BSEK 173, and about 53 000 employees at year end.
Compressor
Technique
Page 20
Vacuum
Technique
Page 23
Industrial
Technique
Page 26
Power
Technique
Page 29
Revenues by region
Revenues by region
Orders received by customer category
Orders received by customer category
Asia/Oceania, 31%
North
America, 25%
Africa/
Middle East, 7%
Europe, 31%
South
America, 6%
Asia/Oceania, 30% North
America, 32%
Africa/
Middle East, 1%
Europe, 34%
South
America, 3%
Asia/Oceania, 58%
North
America, 25%
Africa/
Middle East, 1% Europe, 16%
Asia/Oceania, 22
%N
orth
America, 28%
Africa/
Middle East, 8%
Europe, 35%
South
America, 7%
Other, 16%
General manu-
facturing, 25%
Construction, 13%
Service, 15%
Process industry, 26% Automotive, 2%
Electronics, 3%
Other, 9% General manu-
facturing, 22%
Construction, 2%
Service, 6%
Electronics, 4%
Automotive, 54%
Process industry, 3%
Service, 1%
General manu-
facturing, 12%
Process
industry, 26%
Electronics, 59%
Other, 2%
General manu-
facturing, 19%
Other, 19%
Construction, 30%
Service, 5%
Process
industry, 27%
The Compressor Technique business area provides compressed air and
gas solutions such as industrial compressors, gas and process compres-
sors and expanders, air and gas treatment equipment, air management
systems, and service through a global network.
orders received: mSEK 79 492
revenues: mSEK 75 552
operating margin: 24.5%
The Vacuum Technique business area provides vacuum products,
exhaust management systems, valves and related products, and
service through a global network.
orders received: mSEK 35 723
revenues: mSEK 42 812
operating margin: 22.4%
Revenues by region
Revenues by region
Orders received by customer category
Orders received by customer category
The Industrial Technique business area provides industrial power tools,
assembly and machine vision solutions, quality assurance products,
and service through a global network.
orders received: mSEK 29 497
revenues: mSEK 28 453
operating margin: 21.7%
The Power Technique business area provides portable air and power,
industrial and portable flow solutions through products such as mobile
compressors, generators, energy storage systems, dewatering and
industrial pumps, along with a number of complementary products. It also
offers specialty rental and provides service through a global network.
orders received: mSEK 26 940
revenues: mSEK 26 899
operating margin: 19.3%
Revenues by region, Group
Asia/Oceania, 36%
North
America, 27%
Africa/
Middle East, 5%
Europe, 28%
South
America, 4%
Share of revenues, Group
Equipment, 65%Service, 35%
Orders received by customer category, Group
Other, 12%
General manu-
facturing, 21%
Construction, 11%
Service, 9%
Process industry, 22%
Electronics, 15%
Automotive, 10%
Share of revenues
Service, 41
%E
quipment, 59%
Share of revenues
Equipment, 77%Service, 23%
Share of revenues
Equipment, 73%Service, 27%
Share of revenues
Equipment, 57%Service, 15%
Service
(Specialty
Rental), 28%
a dECEntralIzEd GrouP WIth four BuSInESS arEaS
atlas Copco Group 2023 2
Introduction
Summary of 2023
• A decentralized group with
four business areas
President and CEO
This is Atlas Copco Group
The year in review
Financials
Other information
Technology that transforms the future
This year was a memorable year, and we reached several milestones. We delivered record orders, revenues and operating
profit and we had the unique opportunity to celebrate our 150th anniversary. The growth of our business is driven by our
people and their continuous focus on creating value for our customers. This focus has made us well positioned to handle
opportunities as well as challenges and to ensure that we continue to build a stronger and better company.
Our orders, revenue and operating profit all reached record levels
in 2023. Orders received increased 8% to MSEK 170 627 (158 092).
Revenues increased 22% to MSEK 172 664 (141 325), correspond-
ing to a 14% organic increase, and the operating profit increased
23% to MSEK 37 091 (30 216), corresponding to a margin of 21.5%
(21.4).
During 2023, we also had the opportunity to take a step back
and celebrate our past. During a century and a half, we have deliv-
ered breakthrough innovations and technologies to customers
in many different industries. We have contributed to the develop-
ment of many aspects of modern society and have had an impact
on people’s professional and private lives. We used this opportu-
nity not only to look back, but also to focus on how we are shaping
the future. This has brought a lot of pride, energy and enthusiasm
to both our newly acquired companies as well as to our employees
in countries where we have been present for a long time. The pas-
sion shown by our employees, the ability to adapt and always look
ahead at new opportunities to create value, as well as our dedica-
tion to drive development, are all really worth highlighting and our
anniversary gave us the perfect opportunity.
Solutions with full impact in mind
At the core of our value creation is technology and people who find
opportunities in the challenges our customers and society are fac-
ing. In 2023, we invested 4% of our total revenues, or MSEK 6 166,
in R&D. The last couple of years we have put increased efforts and
funding into developing efficient technologies and solutions that
enable the transformation to a low-carbon society. There is no
doubt that climate change is the biggest challenge of our time and
we have made a commitment to be part of the solution by reducing
the environmental impact of our operations and products. At the
same time, creating platforms for growth in new segments con-
nected to society’s need for new sources of energy, new modes of
transportation and automation, could be our biggest opportunity
ever. If we are to succeed in limiting global warming and staying
within the planetary boundaries, big changes are required. I’m very
proud of the role Atlas Copco Group plays in this transition.
Through our joining technologies, vacuum solutions, and com-
pressors, we have a clear role in enabling the electrification of the
transport sector. We are also an important partner for our custom-
ers in the development of energy storage solutions and products
used in the production of renewable energy, such as solar panels,
wind turbines and hydrogen. These segments are an increasingly
important part of our business. Since a couple of years, we also
have an increased focus on R&D initiatives directed to new growth
platforms which have resulted in several new products launches.
Committed to make real change
By signing up for science-based targets we have committed to
reducing our greenhouse gas emissions, both direct and indirect,
in line with the Paris Agreement. We are, however, not yet bending
the curve of emissions from the use phase of our products. Today,
an absolute majority of our products are already electrified. The
challenge to reduce our customers’ emissions is something we
share with other industrial companies since our progress is depen-
dent on the external development of new technologies and adop-
tion of infrastructure. A wider adoption of renewable energy and
decarbonization of the electric grid is needed to lower emissions
from the energy consumed by our products.
In terms of the emissions from our owned or controlled sources,
and indirect emissions from the generation of purchased energy,
we are making good progress. This shows that we are commit-
ted to making real change and that we are serious about our long-
term targets. Another positive effect of setting ambitious targets
is that they inspire new ways of thinking and new initiatives. This
year we have rolled out a climate awareness training and we have
held “hackathons” in our entities to come up with ideas of how we
as a company can reduce our own climate impact, as well as that of
our customers. We should all reflect on what we can do as individ-
uals and by being part of something bigger, to make sure the next
generation can continue to thrive on our fantastic planet as well
as enjoy the possibilities that economic development and an open
and inclusive society bring.
Opportunities to learn and grow
The ability to handle the ever-changing world around us, upskilling
and lifelong learning is more important than ever. We have held
our annual event, the Never Stop Learning Festival, dedicated to
continuous learning to emphasize the importance of taking owner-
ship of our own development and exploring our full potential.
The Group offers various learning opportunities, such as online
courses, on-the-job training, coaching, mentoring, and formal
The world’s first battery powered screw
compressor, B-Air, launched in 2023.
Atlas Copco Group 2023 3
Introduction
Summary of 2023
A decentralized group with
four business areas
• President and CEO
This is Atlas Copco Group
The year in review
Financials
Other information
President And CeO
education programs throughout the year. Personal growth is not
only about acquiring new skills. It’s also about applying your skills
in new ways. I’m proud that we as an organization provide our
employees with a platform to grow and learn, and of our statement
that we all should be in charge of our own professional life.
Positioned to handle geopolitical challenges
In terms of supply chains and logistics, there are still challenges,
but we have managed to catch up and normalize lead times. We
believe in having a strong local presence throughout the whole
value chain and have invested in new manufacturing capabilities in
the US, Asia and in Europe. We will continue to invest in local manu-
facturing for local customers and ensure that we have the whole
value chain in Europe, in Asia and in the Americas. Building resil-
ience and having the ability to quickly adapt to changing conditions
is a must to remain competitive. We see that our efforts to build
strong power hubs in these three regions have given us a solid
position to de-risk as well as engage. We believe in free trade, how-
ever, from a global perspective, protectionism and competition
between countries and government systems have accelerated in
the last couple of years. The world has become less and less open
and more polarized.
Many countries struggle with corruption, labor issues and
human rights abuse. Environmental standards and legal frame-
works also vary widely from one country to another. Together with
our partners and other stakeholders, we monitor developments
and look for ways to improve the situation. Through dialogue
aimed at understanding and reducing the risks involved we believe
we can have a positive impact. We have a strong commitment to
doing business in an ethical way and we train all employees in the
Code of Conduct and inform them about our system for reporting
violations. We also require that our significant business partners
sign and follow our Code of Conduct and we audit selected suppli-
ers based on risk assessment in our divisions. This year, we have
also continued our increased focus on trade compliance to ensure
that we follow all applicable international trade compliance and
export controls, economic sanctions, and embargoes.
As a global group and an organization with about 53 000
employees all over the world we can also have a positive impact
by showing that we all share the same values and drive transfor-
mation together. We believe in leveraging our different perspec-
tives and backgrounds as a source of inspiration and creativity. In
our mission we now state that we aim to achieve sustainable, profit-
able, and inclusive growth. This means that we should continuously
deliver profitable growth with an increased positive impact on
society and the environment and by promoting diversity and
inclusion. Inclusion is not only about providing everyone within our
organization with support and inspiration to learn and grow. It’s
also about including the perspectives of other stakeholders, such
as our customers’.
A new identity to reflect the Group we are today
We want to offer our customer segments different experiences and
a broad choice of technologies and services to match their prefer-
ences. This is why we have multiple brands. In the last couple of
years, we have added several brands and technologies and entered
new growth platforms. In 2023 alone, we acquired 17 companies,
and many of the companies we have acquired in the last couple of
years have a very strong and growing position in their respective
segments. To close an acquisition is the start of a journey where we
welcome new members to our Group, gain new perspectives and
competences and grow together to reach our full potential. Up
until last year we used the Atlas Copco identity to communicate
about the Group at large as well as Atlas Copco-branded products
and solutions. To better reflect who we are and how all our technol-
ogies and brands bring value to employees, talent, investors, and
society at large, we have launched our new Group identity which
will act as an umbrella for all brands in the Group. This will provide
all brands with the possibility to maintain their uniqueness and an
equal position in the Group while we at the same time better can
highlight what brings us together.
A stronger and better company
In November 2023, I announced that I’m stepping down from the
role as CEO. I have worked 35 years in the Group and have had the
privilege to lead this organization for seven. As CEO, my focus has
always been to build a stronger and better company and I’m very
happy with the growth we have achieved and the initiatives
launched during my tenure. I will carry nothing but extremely fond
memories of the people, passion, and continuous focus on always
finding new and better ways that I have experienced here. The
Group is all about focusing on creating value for our customers as
well as other stakeholders and living our values. That is what has
made this Group such an amazing company and that is what will
continue to allow for further growth and development.
Mats Rahmström
President and CEO of Atlas Copco Group
For the full list of acquisitions,
please see page 94.
Technology that transforms the future, continued
Atlas Copco Group 2023 4
Introduction
Summary of 2023
A decentralized group with
four business areas
• President and CEO
This is Atlas Copco Group
The year in review
Financials
Other information
President And CeO
This is Atlas Copco Group – technology that
transforms the future
The Atlas Copco Group identifies profitable niches
and operates in selected market segments. We
increase our market presence through expand-
ing into segments and technologies close to our
core. Whether we sell our products directly or
indirectly, and under which brand, depends on
the customer and market. Our global presence
and diverse customer base support lasting
growth.
To secure a leading market position, we invest
in research and development. Through leading
technologies, we aim to develop new products
and solutions that are critical to our customers’
operations, improve their productivity, and sup-
port their success. Energy efficiency, connectivity,
and data-driven insights are often key to creating
tangible customer value.
To secure long-term profitable growth over
a business cycle, the Atlas Copco Group has a
strong focus on service, speed, and agility.
Strategy and fundamentals for growth
We also aim to have an asset-light balance sheet
and a flexible cost base.
We seek to perform more service on a higher
share of the installed base of equipment and
extend our service offering by giving customers
new insights supported by connected products.
Speed and agility are achieved through a
decentralized leadership model with clear
accountability, an outsourced production model,
a flexible workforce, continuous scenario plan-
ning, and a transparent organization with solid
financial follow-up.
We believe in keeping production close to our
customers and have production units in Europe,
Asia, and the Americas. We continuously strive for
improved operational efficiency with a responsi-
ble use of resources. This includes continued
improved production processes and the develop-
ment of top-quality and highly efficient products
and services for our customers.
Leading
position in
selected
end
markets
Leading
differentiated
technology
Sustainable
profitable
inclusive
growth
Products
critical
to customers’
operations
Global market
presence
Diverse customer
base
Different value
propositions with
multiple brands
Passionate
and committed
people
Decentralised
business
model
Focus on
resilience
Asset
light
Operational
excellence
Speed and
agility
Leading
service offer
Defined
profitable
niches
Our vision is to become and remain First in Mind—First in Choice of our customers
and other stakeholders. Our mission is to achieve sustainable, profitable, inclusive
growth. This means that we should continuously deliver profitable growth with an
increased positive impact on society and the environment and by promoting diversity
and inclusion. Inclusion is about providing everyone within our organization with sup-
port and inspiration to learn and grow. It also means that we include the perspective
of different stakeholders, like customers and society, when we create value.
To secure our strategic direction and execution, the Atlas Copco Group relies on
competent people passionate about their jobs and committed to delivering customer
value. We focus on attracting people with the right mindset and skills, and empower
them to grow with freedom and accountability. This is crucial to our success.
Atlas Copco Group 2023 5
Introduction
This is Atlas Copco Group
• Technology that transforms
the future
Our targets
This is how we do business
Creating lasting value for
all stakeholders
The year in review
Financials
Other information
THIS IS ATLAS COPCO GROUP
Atlas Copco Group sets ambitious targets to deliver sustainable, profitable, inclusive growth. The targets have different time horizons:
annual, three-year, over a business cycle, and by 2030 for the more long-term ambitions. Sustainability plays a central role in the Group’s
vision and is an integral part of the mission. An integrated sustainable strategy, backed by ambitious targets, helps the company deliver
greater value to all stakeholders in a way that is economically, environmentally and socially responsible.
Financial
Revenue growth measured over a business cycle Target: 8% per annum
Sustained high return on capital employed by constantly
striving for operational excellence and generating growth
Earnings as dividends to shareholders Target: about 50%
0
5
10
15
20
3 years5 years10 years
0
30 000
60 000
90 000
120 000
150 000
20232022202120202019
0
10
20
30
40
50
60
3 years5 years10 years
Goal
Goal
%
MSEK %
%
0
10
20
30
40
50
0
5
10
15
20
3 years5 years10 years
0
30 000
60 000
90 000
120 000
150 000
20232022202120202019
0
10
20
30
40
50
60
3 years5 years10 years
Goal
Goal
%
MSEK %
%
0
10
20
30
40
50
Annual revenue growth rate, average
1)
Capital employed and return
1)
Capital employed, MSEK
Return on capital employed, %
1)
Figures for the years between 2014 and 2017
are best estimated numbers, as the effects of
the distribution of Epiroc and restatements for
IFRS 15 are not fully reconciled.
Our targets
Dividend/earnings per share, average
2)
including discontinued operations
0
5
10
15
20
3 years5 years10 years
0
30 000
60 000
90 000
120 000
150 000
20232022202120202019
0
10
20
30
40
50
60
3 years5 years10 years
Goal
Goal
%
MSEK %
%
0
10
20
30
40
50
Dividend policy history
–2003 30–40% of earnings
2003–2011 40–50% of earnings
2011– about 50% of earnings
2)
Dividend for the fiscal year 2023 is based on the
proposal from the Board of Directors.
Climate & environ ment 2023 2022 2021 Target
Reduction in line with the 1.5 degree warming trajectory in CO2e
1)
emissions (tonnes)
from scopes 1 & 2, compared to the baseline 2019 –38% –35%
2)
–21%
2)
–46% by 2030
Reduction in line with the well-below 2 degrees warming trajectory in CO2e
1)
emissions (tonnes) from scope 3, compared to the baseline 2019 +28% +19%
2)
+3%
2)
–28% by 2030
Significant direct suppliers with an approved environmental management system 31% 31% 31% Continuous increase
Water consumption (m3) in relation to cost of sales
3)
7.5 8.4 – Continuous decrease
Reused, recycled or recovered waste from internal operations
3)
91% 92% – 100% by 2030
Projects for new and redesigned products with targets for reduced carbon impact 95% 97% 98% 100%
Group-common methodology for assessing the circularity of new or
redesigned products – – – In place by 2024
Employees
Female employees, at year end 22.0% 21.6% 20.9% 30% by 2030
Employees agree that they feel a sense of belonging at the company
4) 5)
77 – –
Above the global
benchmark
(73, 76 and 72) and a
continuous increase
Employees agree we have a work culture of respect, fairness and openness
4)
76 – 76
Employees agree there is opportunity to learn and grow in the company
4)
75 – 73
Employees agree that the company takes a genuine interest in their wellbeing
4)
74 – 73 Continuous increase
Balanced safety pyramid = more reports of risk observations than near misses, more
reports of near misses than minor injuries, and more or equal reports of minor
injuries relative to recordable injuries
Yes Yes Yes
A balanced
safety pyramid
Business conduct
Employees sign the Group’s Code of Conduct compliance statement annually 99% 99% 98% 100%
New employees participate in the Group’s ethics training within 12 months
of joining the company, starting 2023
5)
94% – – 100%
Employees participate in the Group’s biennial ethics training, starting 2023
5)
99% – – 100%
Significant suppliers confirm compliance with the Group’s Code of Conduct 90% 93% 93% 100%
Significant distributors confirm compliance with the Group’s Code of Conduct 94% 92% 87% 100%
1)
CO2e stands for carbon dioxide equivalent.
2)
GHG emissions restated in 2023. See page 42 for details.
3)
New and extended scope from 2022, incl. all operations.
4)
Measured every two years through the employee survey.
Scores based on scale 0–100 where 0 is “strongly disagree”
and 100 is “strongly agree”.
5)
First measurement done in 2023.
Atlas Copco Group 2023 6
THIS IS ATLAS COPCO GROUP
Introduction
This is Atlas Copco Group
Technology that transforms
the future
• Our targets
This is how we do business
Creating lasting value for
all stakeholders
The year in review
Financials
Other information
This is how we do business
Atlas Copco Group is characterized by focused businesses in selected market
segments, high customer focus through a decentralized organization, global
presence, a stable service business, professional people, and an asset-light and
flexible manufacturing setup. By providing professional service, technical
competence, application knowledge, and digital capabilities, the Group builds
close customer relationships through direct and indirect channels.
75%
Global reach
with local
presence
Atlas Copco Group has a
global reach with sales in
more than 180 countries.
Sales and service are
performed by employees
with strong application
and process knowledge.
About 75% of the production
cost of equipment represents
purchased components.
Power Technique, 16%
Compressor
Technique, 43%
Vacuum
Technique, 25%
Industrial
Technique, 16%
Share of revenues by business area
Equipment, 65%Service, 35%
Other, 12%
General manufacturing,
21%
Construction, 11%
Service, 9%
Process industry, 22%
Electronics, 15%
Automotive, 10%
Orders received by customer category
Share of revenues
Stable service business
35% of the Group’s revenues come from service
(spare parts, maintenance, repairs, consumables,
accessories, and specialty rental), often gener-
ated from service contracts. An increased
amount of connected equipment gives additional
opportunities to support the service business in
developing value for our customers. The service
business provides a strong base as revenues
from service are more stable than revenues from
equipment sales.
Increase customer value
Customer focus is a guiding principle for Atlas
Copco Group. Surveys are conducted regularly to
learn from customers’ experience and opinions
about their interaction with the Group. Custom-
ers are also often engaged in feedback discus-
sions to improve our products and services. A
number of key performance indicators on cus-
tomer satisfaction have been established, which
are continuously followed up to ensure improved
satis faction.
Manufacturing and logistics
We strive to have manufacturing close to our cus-
tomers. As a result, our production facilities are
located in Europe, Asia, and the Americas. Local
manufacturing also brings resilience and the
ability to adapt to changing conditions.
Our philosophy is to manufacture in-house
such components that are critical to the equip-
ment’s performance. For other components, we
leverage the capacity and competence of our
business partners. Flexible purchasing and logis-
tics are of great importance.
Approximately 75% of the production cost of
equipment represents purchased components,
and about 25% are internally manufactured
core components, assembly costs, and overhead.
Equipment sales generate about 65% of
revenues, and manufacturing
and logistics are organized to
be able to adapt quickly to
changes in demand. Equip-
ment manufacturing is based
Sales and service
The Atlas Copco Group’s ambition is to build close
relationships with customers and help them
increase their productivity and quality in a sus-
tainable way. Customer engagement, sales, and
service take place through direct and indirect
channels (mainly distributors), online as well as
offline, to maximize market presence. Digital
capabilities and interaction are essential to sup-
port customers and create business opportuni-
ties. Consequently, we continuously develop our
teams to ensure they are equipped in these areas
with the right competencies to make it easy to do
business with us. We always aim to be available
when our customers need us, wherever we can
support them best. The Group has a global reach
with sales in more than 180 countries.
Equipment sales is performed by engineers
with strong application knowledge and the ambi-
tion to offer the best solution for specific applica-
tions. Service and maintenance performed by
skilled technicians are an integral part of our
offering. Service is the responsibility of dedicated
divisions in each business area. This includes the
development of service products, sales and mar-
keting, technical support, and service delivery,
all supported by data analysis from connected
equipment.
Atlas Copco Group 2023 7
THIS IS ATLAS COPCO GROUP
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
Creating lasting value for
all stakeholders
The year in review
Financials
Other information
primarily on customer orders, while only some
standard, high-volume equipment is manufac-
tured based on projected demand.
The assembly of equipment is generally carried
out in the Group’s own facilities, and we take
responsibility for the products’ functionality and
quality. In order to optimize production flows, the
assembly is typically lean, and the final product
is generally shipped directly to the end user.
The organization works continuously to efficiently
use human, natural, and capital resources while
ensuring the highest quality.
Innovation
At Atlas Copco Group we believe there is always a
better way of doing things. By developing the
right technologies, we will contribute to a better
tomorrow. Hence, innovation and product devel-
opment are of the greatest importance. Innova-
tion will improve customer value and strengthen
customer relationships, our brands, and financial
performance. Products are designed internally,
and research and development expenditures
correspond to about 4% of total revenues.
The fundamental objective is to design and effi-
ciently produce new or improved products that
provide sustainable and tangible customer bene-
fits in terms of productivity, energy efficiency,
and/or lower life-cycle costs. New hardware and
software are developed by skilled engineers in
the divisions. Atlas Copco Group protects its tech-
nical innovations with patents. Innovation also
includes improved processes to optimize the
flow and utilization of assets and information.
Overcapacities and inefficiencies must always
be challenged.
Investments in fixed assets and working
capital
Our manufacturing philosophy results in a mod-
erate need for investments in property, plant and
equipment, which can be adapted to short and
medium-term changes in demand. Most invest-
ments relate to machining equipment for core
manufacturing activities and to production facili-
ties, primarily for core component manufacturing
and assembly operations.
The working capital requirements are affected
by the relatively high share of sales through own
customer centers, which affects the amount of
inventory and receivables. In an improving busi-
ness climate with higher volumes, more working
capital will be tied up. If the business climate
deteriorates, working capital will be released.
Acquisitions
Acquisitions are primarily made in, or very close
to, existing core businesses, with the aim to grow
existing businesses or create new platforms for
growth. All divisions are required to map and
evaluate businesses that are adjacent, and may
offer tangible synergies, to existing businesses.
All acquired businesses are expected to contrib-
ute positively to economic value added.
Research and
develop ment
expenditures
correspond
to about
AGILE AND RESILIENT OPERATIONAL SETUP
RESILIENCE
DETERIORATING BUSINESS
CLIMATE
Atlas Copco Group can:
– reduce variable costs
– reduce working capital
IMPROVING BUSINESS CLIMATE
Atlas Copco Group can:
– add needed resources
– add working capital
– add small incremental
investments
Time
Volume/
Profits
Asset-light operations
Profitable aftermarket business
AGILITY
Atlas Copco Group
has organized its
manufacturing and
logistics to be able
to quickly adapt
to changes in
equipment
demand.
4%
of total
revenues.
This is how we do business, continued
Atlas Copco Group 2023 8
THIS IS ATLAS COPCO GROUP
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
Creating lasting value for
all stakeholders
The year in review
Financials
Other information
Atlas Copco Group’s organization is based on the principle of
decentralized responsibilities and authorities
Structure and governance
Atlas Copco Group’s organization is based on the principle of
decentralized responsibilities and authorities (see organization
chart to the right). The organization consists of both operating
and legal units. Each opera ting unit has a business board reflect-
ing the Group’s operational structure. The duty of the business
board is to serve in an advisory and decision-making capacity con-
cerning strategic and operative issues. It also ensures the imple-
mentation of controls and assessments. Each legal company has
a legal board focusing on compliance and reflecting the legal
structure of the Group.
The Board of Directors is responsible for the organization and
management of the Group, regularly assessing the Group’s finan-
cial situation and financial, legal, social and environmental risks,
and ensuring that the organization is designed for satisfactory
control. The Board of Directors is also responsible for recruiting
and appointing the President and CEO.
The President and CEO is responsible for the daily manage-
ment of the Group following the Board’s guidelines and instruc-
tions. The President and CEO is also responsible for ensuring that
the organization works towards achieving the targets for sustain-
able, profitable, inclusive growth. The President and CEO leads
the Group Management, which also consists of the business area
presidents and five functional heads.
The business areas are responsible for developing their
respective operations by implementing and following up on strat-
egies and objectives to achieve sustainable, profitable, inclusive
growth.
The divisions are separate operational units, responsible for
delivering results in line with the strategies and objectives set by
the business area. Each division has global responsibility for a
specific product or service offering. A division can include one or
more product companies (units responsible for product develop-
ment, manufac turing and product marketing), distribution cen-
ters, and several customer centers (units responsible for cus-
tomer contacts, sales and service) dedicated or shared with other
divisions.
Regional holding functions are established worldwide to
support the divisional structure of the Group and to represent
Group Management.
As of January 1, 2024
The sharing of resources
and infrastructure/service
providers
Common processes and shared best
practices gathered in the handbook of
policies and guidelines The Way We Do Things
A common
leadership
model
An internal job
market
One Group Treasury
A shared purpose,
vision and identity
Shared goals and
strategic fundamentals
The corporate culture and the
core values: interaction, commitment,
and innovation
The sharing of
brand names and
trademarks
The Atlas Copco Group is unified and strengthened through:
GROUP MANAGEMENT
BOARD OF DIRECTORS
PRESIDENT AND CEO
Divisions generally conduct business through product companies, distribution centers and customer centers.
COMPRESSOR TECHNIQUE
Divisions
Compressor Technique Service
Industrial Air
Oil-free Air
Professional Air
Gas and Process
Medical Gas Solutions
Airtec
Divisions
Vacuum Technique Service
Semiconductor Service
Semiconductor
Semiconductor Chamber
Solutions
Scientific Vacuum
Industrial Vacuum
VACUUM TECHNIQUE
Divisions
Industrial Technique Service
Motor Vehicle Industry Tools and
Assembly Systems
General Industry Tools and
Assembly Systems
Chicago Pneumatic Tools
Industrial Assembly Solutions
Machine Vision Solutions
INDUSTRIAL TECHNIQUE
Divisions
Power Technique Service
Specialty Rental
Portable Air
Power and Flow
POWER TECHNIQUE
The Group’s Code of Conduct
This is how we do business, continued
Atlas Copco Group 2023 9
THIS IS ATLAS COPCO GROUP
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
Creating lasting value for
all stakeholders
The year in review
Financials
Other information
INTERACTION
We interact and develop close relationships
with customers, internally and externally,
as well as with other stakeholders. This
takes place in many ways: physically, online
or in directly through business partners.
We always look for what is best for a
specific target group.
INNOVATION
Our innovative spirit is reflected in
everything we do. Our customers expect
the best from Atlas Copco Group and our
objective is to consistently deliver high-quality
products and service that increase custom-
ers’ productivity and competitiveness.
COMMITMENT
We operate worldwide with a long-term
commitment to our customers in each
country and market served. We keep
our promises and always strive to
exceed high expectations.
Culture, leadership and people
Atlas Copco Group’s culture is characterized by
high-performing teams and a commitment to
people, customers, products, and innovation. We
believe that there is always a better way of doing
things and advocate freedom with accountability.
Several activities are carried out on a regular
basis to maintain and develop our corporate cul-
ture, such as recurring workshops for employees
on company values, strategy, and guidelines.
In the Group, leadership is defined as the
ability to create lasting results through people.
The Group believes that competent and commit-
ted leaders are crucial to achieving sustainable,
profitable, inclusive growth. Freedom to act and
accountability are guiding principles.
All leaders are given a mission statement from
their manager, outlining long-term expectations
and goals in both quantitative and qualitative
terms. The timeframe of the mission is typically
three to five years. Based on the mission state-
ment, the leader is expected to develop a vision,
and clarify how the mission will be achieved,
including the strategies, organization and people
needed to make it happen.
OUR CORE VALUES
Our values reflect how we behave internally
and in relation to external stakeholders.
THE GROUP’S CODE OF CONDUCT
Internal policy documents related to busi-
ness ethics and social and environmental
performance are summarized in Atlas Copco
Group’s Code of Conduct. All employees in
Group companies, as well as our business
partners, are expected to adhere to these
policies. All employees are also required to
annually sign a compliance statement and
participate in a biennial ethics training.
In the Atlas Copco Group,
leadership is defined
as the ability to create
lasting results.
Atlas Copco Group’s performance is closely
related to how the Group succeeds in being a
good employer, attracting and developing
resourceful and motivated people. With a global
business conducted through numerous compa-
nies, we work with continuous competence devel-
opment, and knowledge sharing, while embed-
ding our core values: interaction, commitment,
and innovation, across all people processes.
Atlas Copco Group has a strong culture of
growing talent by encouraging employees to
take accountability for their own career and com-
petence development. The Group enables and
encourages internal mobility and growth by
offering continuous learning activities and an
internal job market. With the ambition to develop
individuals and teams to reach their full potential,
Atlas Copco Group offers accessible tools and
targeted learning content, both digital and class-
room courses and programs, to all employees.
If the Group needs to adapt its capacity in a
deteriorating business climate, the first action
is to stop recruitment. Layoffs are the last resort.
Processes
Group-wide strategies, processes, principles,
guide lines, and shared best practices are gath-
ered in the handbook of policies and guidelines
The Way We Do Things, which is available to all
employees. Although most of the processes are
self-explanatory, managers are provided regular
training in their implementation. Wherever Atlas
Copco Group’s employees are located, they are
expected to work in accordance with the pro-
vided processes, principles and guidelines.
The handbook covers governance, safety,
health, environment and quality, accounting and
business control, treasury, tax, audit and internal
control, IT, people, culture, legal, communications
and branding, risk, crisis management, adminis-
trative services, insurance, standardization, and
acquisitions.
INTERACTION
INNOVATION
COMMITMENT
This is how we do business, continued
Atlas Copco Group 2023 10
THIS IS ATLAS COPCO GROUP
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
Creating lasting value for
all stakeholders
The year in review
Financials
Other information
Creating lasting value for all stakeholders
Atlas Copco Group’s vision is to become
and remain First in Mind—First in Choice
of our customers and other principal
stakeholders. The Group aims to con-
tinuously deliver sustainable, profita-
ble, inclusive growth with an increased
positive impact on society and the
environment. With a responsible use of
resources – human, natural and capital
– we create value for customers,
employees, business partners, share-
holders, as well as for society and the
environment.
1)
Investments in product development, including
capitalized expenditures.
Customers
• Increased productivity
• Increased safety and ergonomics
in working environment
• Energy savings
• Decreased total cost of ownership
Society/
environment
• 99% of employees trained in, and signed
the Code of Conduct
• 38% reduced CO
2
emissions from
energy in operations
• Employment for 52 778 employees
in 70 countries at year end
Shareholders
• 30% return on capital employed
• MSEK 23 192 in operating cash flow
• 21% annual total return A share, 10 year
Business
partners
• Reliable partner for more than 7 000
significant suppliers
• Leverage competence
• Market access
• Over 900 suppliers audited on safety,
health, environ ment and ethics
Employees
• Opportunities to continuously learn
and grow
• A work culture of respect, fairness
and openness
Natural resources
• 531 GWh total energy use
• 64% renewable energy of total
GWh energy used in operations
• 75% of production cost of equip-
ment is purchased components
Human resources
• 51 110 employees, on average
• Employees in 70 countries
• 5 035 R&D engineers generating
industrial ideas and innovations
Financial resources
• Average capital employed
MSEK 125 133
• MSEK 6 166 investments in
innovation
1)
Common vision,
mission and
strategy
Innovations
for customers’
success
Close customer relationships
with application knowledge
and professional service
Sustainability
priorities
Core
values
Decentralized
leadership
model
Agile setup
and asset-light
operations
The resources we put in
Atlas Copco Group
The value we create
The Atlas Copco Group endorses all 17 UN Sustainable
Development Goals and contributes directly to eight of
them: 5. Gender equality; 6. Clean water and sanitation;
7. Affordable and clean energy; 8. Decent work and eco-
nomic growth; 9. Industry, innovation and infrastructure;
12. Responsible consumption and production; 13. Climate
action; and 16. Peace, justice and strong institutions.
See page 35 for more
information on how the
Group contributes to the
achievement of these goals.
Atlas Copco Group 2023 11
THIS IS ATLAS COPCO GROUP
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
This is how we do business
• Creating lasting value for
all stakeholders
The year in review
Financials
Other information
The year in review
Market review and demand
The demand for Atlas Copco Group’s equipment
and services remained strong in 2023, and the
overall order intake increased. In comparable
currencies, the Group’s order intake for equip-
ment was basically unchanged, while the service
part, including the specialty rental business, grew
by 16%, with positive development in all business
areas and in all regions.
Order volumes for compressors increased,
especially for large-sized industrial compressors
and gas and process compressors, in the first
half of the year. The growth was supported by
increased demand from customer segments
contributing to the transition to a low-carbon
society, such as the production of batteries
for electric vehicles, solar panels, LNG, carbon
capture, and hydrogen applications.
The order intake for vacuum equipment
decreased sharply, primarily as a result of signifi-
cantly lower demand from the semiconductor and
flat panel display industry. The demand for indus-
trial and scientific vacuum equipment was also
lower, particularly during the latter half of the year.
Solid order growth was achieved for industrial
assembly and vision solutions, supported by
increased demand from the automotive industry
due to investments in electric vehicle production.
The demand for power equipment such as
portable compressors and generators decreased
compared to the previous year, partly due to
lower investment levels at equipment rental
companies in North America. However, due to
contributions from recent acquisitions and the
industrial pump product offering, the overall
order intake increased.
In total, the Group’s order intake increased
by 8% to a record MSEK 170 627 (158 092).
Acquisitions contributed with 5% and currency
had a positive effect of 3%. Organically, the order
intake remained unchanged. See further informa-
tion in the business area sections, pages 20–31.
North America
The order intake in North America increased 6%
in local currencies. Order volumes for compres-
sors increased, particularly for larger industrial
compressors and gas and process compressors.
Orders also grew for industrial assembly and
vision solutions, supported by customers’
increased investments in the production of elec-
tric vehicles, and for power equipment, such
as portable compressors, generators, and
pumps. The latter was primarily due to increased
demand from equipment rental companies in the
beginning of the year. However, the order intake
for vacuum equipment decreased, driven by
lower demand from the semiconductor industry.
Order volumes for service increased in all busi-
ness areas. In total, North America accounted
for 27% (27) of orders received.
South America
Orders received in South America increased 11%
in local currencies, primarily driven by a higher
demand for industrial compressors. However,
order volumes for industrial assembly and vision
solutions also increased, as well as for power
equipment, such as generators and pumps. The
order intake for service increased in all business
areas. In total, South America accounted for 4%
(4) of orders received.
Europe
The order intake in Europe increased 3% in local
currencies. Orders for industrial compressors
and gas and process compressors increased,
especially in the first half of the year. However,
the order intake for vacuum equipment
decreased markedly due to lower demand,
primarily from the semiconductor industry.
Solid order growth was achieved for industrial
assembly and vision solutions, supported by
increased demand from the automotive and
general industry. In contrast, order volumes for
power equipment, such as portable compres-
sors, generators and pumps, did not reach the
previous year’s level. Solid order growth was
achieved for the service business with growth in
all business areas. In total, Europe accounted for
27% (27) of orders received.
Africa/Middle East
Orders received increased 17% in Africa/Middle
East in local currencies. The higher order intake
was driven by increased demand for industrial
compressors and power equipment, such as
portable compressors, generators and pumps.
Increased order volumes for service also contrib-
uted to the growth. In total, Africa/Middle East
accounted for 5% (4) of orders received.
Asia/Oceania
The order intake in local currencies in Asia/Oceania
increased by 4%. Order volumes for industrial
compressors increased somewhat, and strong
order growth was achieved for gas and process
compressors. The order intake for industrial
assembly and vision solutions also increased,
supported by increased demand from the auto-
motive and general industries. However, vacuum
equipment orders decreased markedly due to
lower order intake from the semiconductor and
flat panel display industry. The order intake for
power equipment such as portable compressors
and pumps increased, with good contributions
from recent acquisitions. Order volumes for the
service business increased in all business areas.
Asia/Oceania accounted for 37% (38) of orders
received.
Market presence
Atlas Copco Group had own customer centers
in 71 (70) countries and production facilities in
26 (24) countries. Revenues were reported in
182 (183) countries.
Risks related to the war in Ukraine
Atlas Copco Group’s financial exposure to Russia
and Ukraine is limited. During 2023, revenues
from Russia accounted for well below 0.5% of the
Group’s total revenues, while Ukraine accounted
for less than 0.1% of total revenues. Further, Atlas
Copco Group has no production units in Russia
or Ukraine. Hence, the ongoing war has very
limited direct financial effects on the Group.
Given the uncertainties surrounding the ongoing
conflict, it is very difficult to predict potential
indirect effects on the Group. As of December 31,
2023, there is no significant impact on any
balance sheet items.
Important events – before and after period end
Acquisitions and divestments
The Group completed 17 acquisitions during
the year. In total, the acquisitions added net
revenues of approximately MSEK 6 235 com-
pared to the previous year. See further informa-
tion in note 2 and in the business area sections
on pages 20–31.
Changes in Group Management
On October 16, 2023, it was announced that IT will
be represented in Atlas Copco Group Manage-
ment. Marcus Hvied was appointed Senior Vice
President, Chief Information Officer, and member
of the management team, effective January 1, 2024.
On November 24, 2023, it was announced that
Mats Rahmström, President and CEO of the Atlas
Copco Group, will leave the Group. After 35 years
in the Group and almost seven years as CEO,
Mats Rahmström informed the Board of Direc-
tors of Atlas Copco AB that he wishes to step
down. Mats Rahmström will continue to be fully
operational up until April 30, 2024.
On January 11, 2024, it was announced that the
Board of Directors has appointed Vagner Rego as
the new President and CEO of Atlas Copco Group,
effective May 1, 2024.
Atlas Copco Group 2023 12
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Financial targets – growth
and return development
Annual revenue growth rate, average (FX adjusted)
1)
The Group’s target for annual revenue
growth is 8%, measured over a business
cycle. At the same time, the ambition is to
grow faster than the most important compe-
titors. Growth should primarily be organic,
supported by selective acquisitions.
The Group aims to have a strong and cost-
efficient financing of the business. The priority
for the use of capital is to develop and grow the
business. The strong profitability and cash
generation allow the Group to do that while
at the same time maintaining the ambition to
distribute about 50% of earnings as dividends
to shareholders.
Dividend/earnings per share, average
2)
including discontinued operations
Capital employed and return
The Group’s target is to deliver sustained
high return on capital employed, by
constantly striving for operational
excellence and generating growth.
1)
Figures for the years between 2014 and 2017 are best
estimated numbers, as the effects of the distribution of
Epiroc and restatements for IFRS 15 are not fully reconciled.
0
5
10
15
20
3 years5 years10 years
0
30 000
60 000
90 000
120 000
150 000
20232022202120202019
0
10
20
30
40
50
60
3 years5 years10 years
Goal
Goal
%
MSEK %
%
0
10
20
30
40
50
0
5
10
15
20
3 years5 years10 years
0
30 000
60 000
90 000
120 000
150 000
20232022202120202019
0
10
20
30
40
50
60
3 years5 years10 years
Goal
Goal
%
MSEK %
%
0
10
20
30
40
50
0
5
10
15
20
3 years5 years10 years
0
30 000
60 000
90 000
120 000
150 000
20232022202120202019
0
10
20
30
40
50
60
3 years5 years10 years
Goal
Goal
%
MSEK %
%
0
10
20
30
40
50
Dividend policy history
–2003 30–40% of earnings
2003–2011 40–50% of earnings
2011– about 50% of earnings
2)
Dividend for the fiscal year 2023
is based on the proposal from
the Board of Directors.
Orders received by region and order
development in local currency
Capital employed, MSEK
Return on capital employed, %
Share: 27%
Change: +6%
Share: 4%
Change: +11%
Share: 27%
Change: +3%
Share: 5%
Change: +17%
Share: 37%
Change: +4%
North
America
South
America
Europe
Africa/
Middle East
Asia/
Oceania
Atlas Copco Group 2023 13
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Revenues
The Group’s revenues increased 22% to a record MSEK 172 664
(141 325), corresponding to a 14% organic increase. Currency
had a positive effect of 4%, and acquisitions contributed with 4%
during the year. The Group’s target is to achieve an annual revenue
growth of 8% over a business cycle. For the period 2014–2023, the
average annual revenue growth has been 10%*.
Operating profit
The operating profit also reached a record of MSEK 37 091 (30 216),
corresponding to a margin of 21.5% (21.4). Items affecting compa-
rability amounted to MSEK –1 126 (151) whereof the change in pro-
vision for share-related long-term incentive programs, reported in
Common Group Items, was MSEK –520 (151). Other items affecting
comparability include MSEK –606 related to a provision for a com-
mercial dispute originating from an agreement dating back to
before the current Group structure and the split of the Group in
2018, also reported in Common Group Items. The adjusted operat-
ing profit increased 27% to MSEK 38 217 (30 065), corresponding
to a margin of 22.1% (21.3). See the sales and profit bridge below.
The operating profit for the Compressor Technique business area
increased by 28% to MSEK 18 488 (14 425), corresponding to a
margin of 24.5% (23.6). The main explanation for the higher margin
was increased organic revenues. Currency and dilution from acqui-
sitions had a small negative effect on the operating margin.
The operating profit for the Vacuum Technique business area
increased 14% to MSEK 9 607 (8 407), corresponding to a margin
of 22.4% (21.6). The margin was positively affected by currency, and
the combination of volume price mix and other, while dilution from
acquisitions affected the margin negatively.
The operating profit for the Industrial Technique business area
increased 35% to MSEK 6 183 (4 597), and the operating margin
reached 21.7% (20.0). The main explanation for the higher margin
was increased revenues, while currency had a negative effect.
The operating profit for the Power Technique business area
increased 47% to MSEK 5 191 (3 525), corresponding to a margin of
19.3% (18.5). The higher margin was mainly due to increased
organic revenues. Currency and acquisitions had no material effect
on the operating margin. Net costs for common Group items and
eliminations were MSEK –2 378 (–738). The increase was mainly due
Revenues and return
* Currency adjusted. Figures for the years 2014–2017 are best estimated numbers, as the effects of the distribution of Epiroc and restatements for IFRS 15 are not fully reconciled.
Bridge – revenues
and operating profit, MSEK
2023
Volume, price,
mix and other Currency Acquisitions
Items affecting
comparability
Share-based long-term
incentive programs 2022
Revenues 172 664 19 249 5 855 6 235 – – 141 325
Operating profit 37 091 6 642 930 580 –606 –671 30 216
Effect on margin, % 21.5 21.4
Sales bridge,
Atlas Copco Group
Orders received Revenues
2022, MSEK
158 092 141 325
Structural change, % +5 +4
Currency, % +3 +4
Organic*, % +0 +14
Total, % +8 +22
2023, MSEK 170 627 172 664
* Volume, price and mix.
Sales bridge
Compressor Technique Vacuum Technique Industrial Technique Power Technique
Orders received Revenues Orders received Revenues Orders received Revenues Orders received Revenues
2022, MSEK
69 834 61 058 41 213 38 941 26 070 23 007 21 783 19 053
Structural change, % +2 +2 +4 +4 +0 +0 +21 +18
Currency, % +3 +4 +3 +3 +4 +5 +4 +5
Organic*, % +9 +18 –20 +3 +9 +19 –1 +18
Total, % +14 +24 –13 +10 +13 +24 +24 +41
2023, MSEK 79 492 75 552 35 723 42 812 29 497 28 453 26 940 26 899
* Volume, price and mix.
to higher costs related to share-related long-term incentive pro-
grams, which were MSEK –520 (151), and a provision of MSEK –606
related to a commercial dispute originating from an agreement
dating back to before the current Group structure and the split of
the Group in 2018.
0
50 000
100 000
150 000
200 000
20232022202120202019
0
10
20
30
40
MSEK %
Orders received, revenues and operating margin
Orders received,
MSEK
Revenues, MSEK
Operating
margin, %
Atlas Copco Group 2023 14
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Revenues and operating profit, Revenues Operating profit Operating margin, % Return on capital employed, % Investments in tangible fixed assets
1)
MSEK 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Compressor Technique 75 552 61 058 18 488 14 425 24.5 23.6 85 82 1 091 897
Vacuum Technique 42 812 38 941 9 607 8 407 22.4 21.6 22 24 1 742 2 099
Industrial Technique 28 453 23 007 6 183 4 597 21.7 20.0 21 17 738 518
Power Technique 26 899 19 053 5 191 3 525 19.3 18.5 22 25 2 089 1 009
Common Group functions/eliminations –1 052 –734 –2 378 –738 –57 25
Total Group 172 664 141 325 37 091 30 216 21.5 21.4 30 29 5 803 4 548
1)
Excluding right-of-use assets.
Depreciation and EBITDA
Depreciation, amortization and impairment costs were MSEK
7 779 (6 347) and earnings before depreciation and amortization,
EBITDA, reached MSEK 44 852 (36 549), corresponding to a
margin of 26.0% (25.9).
Net financial items
The Group’s net financial items totaled MSEK –649 (–172) whereof
interest expense was MSEK –521 (–166). The increased interest cost
was mainly a result of higher interest rates. Other financial items
were MSEK –128 (–6). See notes 7 and 26.
Profit before tax
Profit before tax increased 21% to MSEK 36 442 (30 044). Excluding
items affecting comparability, profit before tax was MSEK 37 568
(29 893), corresponding to margin of 21.8% (21.2).
Taxes
Taxes for the year amounted to MSEK 8 390 (6 562), corresponding
to an effective tax rate of 23.0% (21.8) in relation to profit before
tax. The higher effective tax rate reflects increased tax rates in
major countries where we operate and a geographical mix effect.
See note 8.
Profit and earnings per share
Profit for the year increased 19% to MSEK 28 052 (23 482).
This corresponds to basic and diluted earnings per share of
SEK 5.76 (4.82) and SEK 5.75 (4.81) respectively.
Depreciation, amortization
and impairment, MSEK
2023 2022
Rental equipment 897 779
Other property, plant and equipment 1 944 1 561
Right-of-use assets 1 639 1 330
Intangible assets 3 299 2 677
Total 7 779 6 347
Key financial data, MSEK 2023 2022 Change, %
Orders received 170 627 158 092 8
Revenues 172 664 141 325 22
EBITDA 44 852 36 549
– in % of revenues 26.0 25.9
EBITA
1)
39 242 31 956
– in % of revenues 22.7 22.6
Operating profit 37 091 30 216 23
– in % of revenues 21.5 21.4
Adjusted operating profit 38 217 30 065 27
– in % of revenues 22.1 21.3
Profit before tax 36 442 30 044 21
– in % of revenues 21.1 21.3
Profit for the year 28 052 23 482 19
Basic earnings per share, SEK 5.76 4.82
Diluted earnings per share, SEK 5.75 4.81
1)
Operating profit excluding amortization of intangibles related to acquisitions.
Revenues and return, continued
Atlas Copco Group 2023 15
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Balance sheet
The Group’s total assets increased 6% to MSEK 182 684 (172 301).
Cash, cash equivalents and other current financial assets decreased
to MSEK 11 852 (12 143), as a net effect of operational cash genera-
tion (see next page), dividend to shareholders of MSEK –11 203,
and acquisitions MSEK –4 314.
Working capital ratios
The ratio of inventories to revenues at year end decreased to
17.0% (19.3), and trade receivables to 18.9% (21.2). Trade
payables were 10.3% (13.5).
Capital turnover
The capital turnover ratio was 0.94 (0.91) and the capital
employed turnover ratio was 1.38 (1.33).
Equity
At year end, Group equity including non-controlling interests
was MSEK 91 500 (80 026), corresponding to 50% (46) of total
assets. Equity per share was SEK 19 (16). Atlas Copco AB’s market
capitalization at year end was BSEK 816 (587), an increase of 39%.
The information related to public takeover bids is the same as
for the Parent Company and described on page 18.
Total comprehensive income for the year was MSEK 22 900
(31 854). See page 85 and note 9. Shareholders’ transactions
include dividends totaling MSEK –11 211 (–18 982), sales and
repurchases of own shares of net MSEK –265 (483), and share-
based payments of net MSEK –472 (–41). See page 87 and note 19.
Return on capital employed and return on equity
Return on capital employed reached 30% (29) and the return on
equity was 32% (32). The Group uses a weighted average cost of
capital (WACC) of 8% (8) after tax as an investment and overall
performance benchmark.
Revenues and return, continued
Balance sheet in summary, MSEK Dec 31, 2023 Dec 31, 2022
Intangible assets 67 501 67 067
Rental equipment 4 345 2 689
Other property, plant and equipment 14 358 12 720
Right-of-use assets 5 763 4 752
Other fixed assets 4 510 4 861
Inventories 29 283 27 219
Receivables 45 072 40 849
Current financial assets 965 889
Cash and cash equivalents 10 887 11 254
Assets classified as held for sale – 1
Total assets 182 684 172 301
Total equity 91 500 80 026
Interest-bearing liabilities 35 293 38 713
Non-interest-bearing liabilities 55 891 53 562
Total equity and liabilities 182 684 172 301
Equity, MSEK 2023 2022
Opening balance 80 026 67 634
Profit for the year 28 052 23 482
Other comprehensive income for the year –5 152 8 372
Shareholders’ transactions –11 211 –18 982
Change of non-controlling interests –8 44
Acquisition and divestment of own shares 265 –483
Share-based payments, equity settled –472 –41
Closing balance 91 500 80 026
Equity attributable to
– owners of the parent 91 450 79 976
– non-controlling interests 50 50
Atlas Copco Group 2023 16
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Interest-bearing debt and net indebtedness
Total interest-bearing debt was MSEK 35 293 (38 713), whereof
MSEK 2 584 (2 380) in post-employment benefits. The Group has
an average maturity of 5.7 years on interest-bearing liabilities.
See notes 20 and 22 for additional information. The Group’s net
indebtedness, amounted to MSEK 23 441 (26 570) at year end.
The net debt/EBITDA ratio was 0.5 (0.7) and the debt/equity ratio
was 26% (33).
Credit rating
Atlas Copco AB’s long-term and short-term debt is rated by
Standard & Poor’s and Fitch with the long-/short-term rating
A+/A-1 and A+/F1+, respectively.
Operating cash flow and investments
Operating cash surplus was MSEK 45 781 (36 978). Cash flows from
financial items were MSEK –883 (–714). Net pension funding and
payments were MSEK –512 (–419). The working capital increased by
MSEK 5 775 (increase of 7 415), affected by increased inventories.
Net investments in rental equipment were MSEK 1 769 (808).
Gross investments in property, plant and equipment increased
to MSEK 3 987 (3 660). In 2023, Compressor Technique made
notable investments in a new production and distribution facility
in China, in production for gas and process compressors as well
as in a new factory for industrial compressors in India. Vacuum
Technique invested in a production facility for abatement systems
in South Korea, in an extension of production of dry vacuum pumps
in China and in further automation of a production unit for indus-
Revenues and return, continued
trial vacuum pumps in Germany. Industrial Technique invested in
an innovation center and office facility for machine vision solutions
in Germany, and in a new production facility and R&D center in
China. Power Technique invested in a service center in Sweden and
in rental depots in Brazil, India, and Peru. Cash received from sale
of property, plant and equipment equaled to MSEK 101 (99).
Net investments in intangible assets, mainly related to capitali-
zation of product development expenditures, were MSEK 1 464
(1 371). Net investments in other assets were MSEK –18 (20).
In total, the operating cash flow reached MSEK 23 192 (17 099).
Cash flow from structural changes
The net cash flow from structural changes, i.e. acquisitions and
divestments, amounted to MSEK –4 314 (–10 591). See also note 2.
Cash flow from financing
Dividends paid amounted to MSEK –11 203 (–9 250). Sales and
repurchases of own shares resulted in a net of MSEK 265 (–483),
all related to hedging or deliveries of shares for the long-term
incentive plans described on page 113. Change in interest-bearing
liabilities was MSEK –7 330 (4 814).
Employees
In 2023, the average number of employees in the Group increased
by 5 329 to 51 110. At year end, the number of employees was
52 778 (48 951), and the number of consultants/external work-
force was 3 123 (3 834). For comparable units, the total workforce
increased by 1 986. See also note 4.
Calculation of operating cash flow, MSEK 2023 2022
Operating cash surplus 45 781 36 978
Net financial items –883 –714
Taxes paid –8 758 –6 245
Pension funding –512 –419
Change in working capital –5 775 –7 415
Increase in rental equipment, net –1 769 –808
Cash flows from operating activities 28 084 21 377
Investments of property, plant and
equipment, net –3 886 –3 561
Other investments, net –1 482 –1 351
Cash flow from investments –5 368 –4 912
Adjustment for currency hedges of loans 476 634
Operating cash flow 23 192 17 099
Average number of employees 2023 2022
Atlas Copco Group 51 110 45 781
– Sweden 1 576 1 474
– Outside Sweden 49 534 44 307
Business areas
– Compressor Technique 21 638 20 044
– Vacuum Technique 12 620 10 929
– Industrial Technique 9 746 9 162
– Power Technique 6 242 4 810
– Common Group functions 864 836
Atlas Copco Group 2023 17
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Atlas Copco AB is the ultimate Parent Company of the
Atlas Copco Group and is headquartered in Nacka, Sweden.
Earnings
Profit before tax amounted to MSEK 11 621 (32 753) and profit
for the year amounted to MSEK 11 374 (32 433). The difference
between the years is mainly due to decreased dividends from
Group Companies.
Financing
The total assets of the Parent Company were MSEK 198 050
(184 774). At year end 2023, cash and cash equivalents amounted
to MSEK 0 (0) and interest-bearing liabilities amounted to MSEK
34 605 (21 393). Equity represented 82% (88) of total assets and
non-restricted equity totaled MSEK 156 444 (156 517).
Employees
The average number of employees in the Parent Company was
119 (110).
Remuneration
Principles for remuneration, fees and other remuneration paid to
the Board of Directors, the President and CEO, and other members
of Group Management, other statistics and the guidelines regard-
ing remuneration and benefits to Group Management as approved
by the Annual General Meeting are specified in note 4.
Financial risks, risks and factors of uncertainty
Atlas Copco Group is subject to currency risks, interest rate risks
and other financial risks. Atlas Copco Group has adopted a policy to
control the financial risks to which Atlas Copco AB and other Group
companies are exposed. A financial risk management committee
meets regularly to make decisions about how to manage these
risks. See also Risks, risk management and opportunities on
pages 67–71.
Appropriation of profit
The Board of Directors proposes to the Annual General Meeting
2024 a dividend of SEK 2.80 (2.30) per share to be paid for the 2023
fiscal year. Excluding shares currently held by the Company, the
proposed dividend corresponds to a total of MSEK 13 638 (11 203).
In order to facilitate a more efficient cash management, the
dividend is proposed to be paid in two equal installments, the first
with record date April 26, 2024, and the second with record date
October 21, 2024.
SEK
Retained earnings including reserve for fair value 145 070 388 816
Profit for the year 11 373 879 363
The Board of Directors proposes that these earnings
be appropriated as follows:
To the shareholders, a dividend of SEK 2.80 per share 13 637 565 992
To be retained in the business 142 806 702 187
Total 156 444 268 179
Parent Company
Shares and share capital
At year end, Atlas Copco AB’s share capital totaled MSEK 786 (786)
and a total number of 4 918 452 416 shares divided into
3 357 576 384 class A shares and 1 560 876 032 class B shares were
issued. Net of 47 893 133 class A shares and 0 class B shares held
by the Group, 4 870 559 283 shares were outstanding. Class A
shares entitle the owner to one vote while class B shares entitle the
owner to one tenth of a vote. Class A shares and class B shares
carry equal rights to a part of the Company’s assets and profit.
Investor AB is the single largest shareholder in Atlas Copco AB.
At year end 2023, Investor AB held a total of 835 653 755 shares,
representing 22.3% of the votes and 17.0% of the capital.
There are no restrictions prohibiting the right to transfer shares
of the Company, nor is the Company aware of any such agreements.
In addition, the Company is not party to any material agreement
that enters into force or is changed or ceases to be valid if the con-
trol of the Company is changed as a result of a public takeover bid.
There is no limitation to the number of votes that can be cast at a
General Meeting of shareholders.
As prescribed by the Articles of Association, the General Meeting
has sole authority for the election of Board members and there are
no other rules relating to the election or dismissal of Board mem-
bers or changes in the Articles of Association. Correspondingly,
there are no agreements with Board members or employees
regarding compensation in case of changes of current position
reflecting a public takeover bid.
Statutory sustainability report
Atlas Copco AB has prepared a sustainability report in accordance
with the Global Reporting Initiative’s guidelines (GRI Standards)
which, in combination with the EU Taxonomy regulation disclo-
sures on pages 45–50, also constitutes Atlas Copco AB’s statutory
sustainability report and encompasses all its subsidiaries. The
sustainability report has been prepared in accordance with the
disclosure requirements set out in the Swedish Annual Accounts
Act, chapter 6, paragraph 10. The scope and content of the sustain-
ability report are defined on page 61.
Atlas Copco Group 2023 18
Introduction
This is Atlas Copco Group
• The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review
Atlas Copco Group 2023 19
Introduction
This is Atlas Copco Group
The year in review
• Business areas
Compressor Technique
Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Business AreAs
Business areas
Key figures, MSEK 2023 2022 Change, %
Orders received 79 492 69 834 14%
Revenues 75 552 61 058 24%
EBITA* 19 073 14 882 28%
– as a percentage of revenue 25.2 24.4
Operating profit 18 488 14 425 28%
Operating margin, % 24.5 23.6
Return on capital employed, % 85 82
Investments 1 091 897
Average number of employees 21 638 20 044
* Operating profit excluding amortization of intangibles related to acquisitions.
Key figures, MSEK 2023 2022 Change, %
Orders received 35 723 41 213 –13%
Revenues 42 812 38 941 10%
EBITA* 10 327 9 019 15%
– as a percentage of revenue 24.1 23.2
Operating profit 9 607 8 407 14%
Operating margin, % 22.4 21.6
Return on capital employed, % 22 24
Investments 1 742 2 099
Average number of employees 12 620 10 929
* Operating profit excluding amortization of intangibles related to acquisitions.
Key figures, MSEK 2023 2022 Change, %
Orders received 29 497 26 070 13%
Revenues 28 453 23 007 24%
EBITA* 6 730 5 127 31%
– as a percentage of revenue 23.7 22.3
Operating profit 6 183 4 597 35%
Operating margin, % 21.7 20.0
Return on capital employed, % 21 17
Investments 738 518
Average number of employees 9 746 9 162
* Operating profit excluding amortization of intangibles related to acquisitions.
Key figures, MSEK 2023 2022 Change, %
Orders received 26 940 21 783 24%
Revenues 26 899 19 053 41%
EBITA* 5 490 3 666 50%
– as a percentage of revenue 20.4 19.2
Operating profit 5 191 3 525 47%
Operating margin, % 19.3 18.5
Return on capital employed, % 22 25
Investments 2 089 1 009
Average number of employees 6 242 4 810
* Operating profit excluding amortization of intangibles related to acquisitions.
The Compressor Technique business area provides compressed air and gas solutions such
as industrial compressors, gas and process compressors and expanders, air and gas treat-
ment equipment, air management systems, and service through a global network.
Compressor Technique, page 20
Vacuum Technique, page 23
The Vacuum Technique business area provides vacuum products,
exhaust management systems, valves and related products, and
service through a global network.
Industrial Technique, page 26
Power Technique, page 29
The Industrial Technique business area provides industrial power tools, assembly and
machine vision solutions, quality assurance products, and service through a global network.
The Power Technique business area provides portable air and power, industrial and portable
flow solutions through products such as mobile compressors, generators, energy storage
systems, dewatering and industrial pumps, along with a number of complementary products.
It also offers specialty rental and provides service through a global network.
Compressor Technique
The demand for the business area’s equipment and services remained strong, and order volumes increased, supported by solid
demand in all regions. Eight acquisitions were completed, and continued investments were made in product development, online
and offline market presence, service and digital capabilities, as well as in production. The business area remained focused on efforts
to reduce its environmental footprint and solutions supporting customers in their sustainability ambitions.
Market development
The demand for equipment and services was
strong and order volumes increased throughout
the year, especially for equipment in the first half
of 2023. In total, the order intake increased 9%
organically.
Solid order growth was achieved for the ser-
vice business with increased order volumes in all
regions. The favorable order development was
supported by higher demand for spare parts,
repair, maintenance, and service contracts, the
latter supported by an increased number of con-
nected products in the market.
The order intake for equipment increased with
increased order volumes in all regions.
Orders for industrial compressors increased
primarily driven by growing demand for large
industrial compressors, while the demand for
small and medium-sized compressors grew at a
more moderate pace. The overall growth was a
result of a generally favorable business environ-
ment but was also helped by solid demand from
customer segments contributing to the transition
to a low-carbon society, such as the production of
batteries for electric cars, solar panels, LNG, and
hydrogen applications. In total, order volumes
increased in all regions.
The order intake for gas and process compres-
sors increased significantly, supported, but not
entirely driven by, several larger orders related to
LNG and carbon capture applications in the first
quarter. Order volumes increased in all regions,
most notably in North America and Asia.
Sales bridge Orders received Revenues
2022, MSEK 69 834 61 058
Structural change, % +2 +2
Currency, % +3 +4
Organic*, % +9 +18
Total, % +14 +24
2023, MSEK 79 492 75 552
* Volume, price and mix
Revenues, MSEK
2022: 61 058
75 552
Operating profit margin
2022: 23.6%
24.5%
Return on capital employed
2022: 82%
85%
Market presence and organizational
development
The business area continued to invest in innova-
tion during the year, and several new products
were introduced to the market to strengthen the
product offering. The business area also contin-
ued to invest in market presence by adding
resources and digital capabilities in research and
development, marketing and sales, and service.
The service offer was further strengthened with
an increased focus on connectivity and data
analytics to further support our customers.
The efforts to reduce the environmental foot-
print of the business area’s own operations
remained, with additional investments in solar
panels as one example.
Several activities to support customers in their
sustainability ambitions were also carried out.
The product offering was further developed with
a strong focus on reducing customers’ environ-
mental footprints. Among other things, even
more energy efficient products were rolled out to
the market, especially through further developed
variable speed technology. The business area
also established a dedicated organization
focused on supporting customers in optimizing
their energy efficiency at the installed base of
products.
The business area invested in a new produc-
tion and distribution facility in Wuxi, China, in pro-
duction for the gas and process division in Pune,
India, as well as in a new factory in Pune, India, for
the manufacturing of industrial compressors.
The business area also increased its presence
in targeted markets and customer segments
through several acquisitions, see the following
section.
The business area made in total
eight acquisitions in 2023:
• FS Medical Technology Business (FS Medical),
a US-based service supplier of medical gas
systems with 32 employees.
• MedCore Services Inc., a Canada-based medi-
cal gas service provider with 7 employees.
• C.P. Service SRL, an Italy-based compressor
distributor and service provider with
13 employees.
• Maziak Compressor Services Ltd. a UK distribu-
tor of air compressors, nitrogen generators,
process cooling equipment, and related
services with 40 employees.
• Asven S.R.L. an Argentinian compressed air
distributor with 10 employees.
• Two US-based medical gas systems service
suppliers: William G. Frank Medical Gas
Testing and Consulting, LLC, and Medical Gas
Credentialing LLC, with in total 8 employees.
• ACJ, s.r.o., a compressor distributor in Slovakia
with 14 employees.
• Hamamcıoğlu Makina (HAMAK), a Turkish
distributor of compressed air solutions with
23 employees.
For more information see page 94.
Revenues, profits and returns
Revenues reached MSEK 75 552 (61 058), an
organic increase of 18%. The operating profit
increased by 28% to MSEK 18 488 (14 425),
corresponding to a margin of 24.5% (23.6). The
main explanation for the higher margin was
increased organic revenues. Currency and dilu-
tion from acquisitions had a small negative effect
on the operating margin. Return on capital
employed was 85% (82).
0
20 000
40 000
60 000
80 000
20232022202120202019
0
10
20
30
40
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2023 20
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Compressor Technique
Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAR in Review – COmpReSSOR teChnique
The market
The global market for equipment for compres-
sion of air and gases, gas treatment equipment,
and related services, is characterized by a diversi-
fied customer base. The customers request solu-
tions that are reliable, productive, efficient, and
suited to specific applications. Customers are
also increasingly looking for partners to support
them in their sustainability ambitions.
Compressors are used in a broad spectrum of
applications. Clean, dry, and oil-free air, is needed
in industrial processes, e.g. the food, pharmaceuti-
cal, electronics, and textile industries. Compres-
sors are used in wastewater treatment, and
increasingly in applications contributing to the
transition to a low-carbon society, such as green
hydrogen, LNG, carbon capture, and batteries for
electric vehicles. Compressed air is also used in
automation and in sectors as diverse as hospitals
and high-speed trains. Blowers are used in appli-
cations where there is a need for a consistent flow
of low- pressure air, for example in waste water
treatment, and conveying.
Gas and process compressors and expanders
are supplied to various process industries, such
as carbon capture, hydrogen, air separation
plants, power utilities, chemical and petro-
chemical plants, and LNG applications.
Stationary industrial air compressors and asso-
ciated air-treatment products, spare parts and
service represent about 90% of revenues. Large
gas and process compressors, including related
service, represent about 10%.
Market trends
• Increased focus on energy efficiency, optimiza-
tion, energy recovery, and the reduction of CO2
emissions
• Accelerated investments in market segments
contributing to a low-carbon society
• Focus on total solution and total life- cycle cost
• The combination of cloud technology, big data
and AI/machine learning increases the
demand for data-driven service solutions
• New applications for compressed air and gases
Demand drivers
• Industrial production
• The transition to a low-carbon society
• Energy costs
• The need for decreased CO2 emissions drives
demand for more energy-efficient machinery
Vision and strategy
The vision is to be First in Mind—First in Choice
as a supplier of compressed air and gas solutions
by being interactive, committed and innovative,
and by offering the best value to customers. The
strategy is to further develop a leading position
in selected niches and growing the business in a
way that is economically, environmentally and
socially responsible. This should be done by capi-
talizing on the strong global market presence,
improving market penetration in mature and
developing markets, and continuously develop-
ing improved products and solutions to satisfy
customer demands. The presence is enhanced
by utilizing several commercial brands. Key
strategies include growing the service business
as well as developing businesses within focused
areas such as air-treatment equipment, blowers,
and compressor solutions for green energy
segments, trains, ships, and hospitals.
By offering the most energy-efficient products,
the business aims to contribute to a better
tomorrow and to support customers in meeting
their sustainability ambitions.
The business area is actively looking at
acquiring complementary businesses.
Strategic activities
• Intensify focus on research and development
• Increase focus on digitalization and connected
products
• Increase market coverage, through digital and
physical presence, and improve presence in
targeted markets/segments
• Develop new sustainable products and
solutions offering better value and improved
energy efficiency to customers
• Activities supporting customers to meet
their sustainability ambitions
• Extend the product and service offering to
current customers and adjacent segments
and applications
• Perform more service on a higher share of
the installed base of equipment
• Increase operational efficiency
• Invest in people and competence development
• Acquire complementary businesses
Competition
Compressor Technique’s principal competitors
in the market for industrial compressors and air
treatment equipment are Ingersoll Rand, Kaeser,
Hitachi, and Parker Hannifin. There are also
numerous regional and local competitors, for
example, in China. In the market for gas and
process compressors and expanders, the main
competitors are Siemens and MAN Turbo.
Market position
A leading market position globally in most of
its operations.
Revenues by region
Asia/Oceania, 31%
North
America, 25%
Africa/
Middle East, 7%
Europe, 31%
South
America, 6%
Other, 16%
General manu-
facturing, 25%
Construction, 13%
Service, 15%
Process industry, 26% Automotive, 2%
Electronics, 3%
Share of revenues
Service, 41
%E
quipment, 59%
Orders received by customer category
Atlas Copco Group 2023 21
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Compressor Technique
Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAR in Review – COmpReSSOR teChnique
Compressor Technique: Products and applications
Piston compressors
Piston compressors are available as oil-injected
and oil-free. They are used in general industrial
applications as well as specialized applications.
Oil-free tooth and scroll compressors
Oil-free tooth and scroll compressors are used
in industrial and medical applications with a
demand for high-quality oil-free air. Some
models are available as WorkPlace AirSystem
with integrated dryers, as well as with energy-
efficient variable speed drive (VSD).
Rotary screw compressors
Rotary screw compressors are available as oil-
injected and oil-free. They are used in numerous
industrial applications and can feature the Work-
Place AirSystem with integrated dryers, as well as
the energy-efficient variable speed drive (VSD)
technology and energy recovery kits.
Oil-free blowers
Oil-free blowers are available with different tech-
nologies: rotary lobe blowers, rotary screw blow-
ers and centrifugal blowers. Blowers are used in
process industry applications with a demand for
a consistent flow of low-pressure air, for example
in wastewater treatment and conveying.
Oil-injected
screw compressor
with variable
speed
Hydrogen compressor
for mobility applications
Oil-free gas screw
compressors are
essential equipment
aboard liquefied
natural gas vessels
Atlas Copco Group offers all major air compression technologies as well as air and gas treatment equipment,
and air management systems and is able to offer customers the best solution for every application.
INNOVAT IONS DUR ING 202 3
Several new products were introduced
during the year, including:
GA 55+-90, a new range of oil-injected
screw compressors, offering high reliability
and energy efficiency thanks to the latest
compressor element technology and an
intelligent temperature control system.
H2Y, a new hydrogen compressor for
mobility applications, offering consistent
gas quality and frequent start and stop
reliability.
H2ECM, a new turboexpander for hydro-
gen liquefaction, that handles extremely
low temperatures and maximizes
refrigeration.
ZR CO2 + ND CO2, a new compressor and
a dryer forming an essential building block
for carbon capture systems that supports
with compression and drying of CO2 in sev-
eral industries where CO2 is captured to
prevent it from entering the atmosphere.
Gas and Process,
President
Robert Radimeczky
MANAGEMENT
Compressor technique, December 31, 2023
Business Area
President
Vagner Rego
Compressor
Technique Service,
President Dirk Beyts
Industrial Air,
President Joeri Ooms
Oil-free Air, President
Philippe Ernens
Professional Air,
President
Alain Lefranc
Medical Gas
Solutions, President
Ben Van Hove
Airtec, President
Wouter Ceulemans
Oil-free centrifugal compressors
Oil-free centrifugal compressors are used in
industrial applications that require constant,
large volumes of oil-free air. They are also called
turbo compressors.
Gas and process compressors, expanders
and pumps
Gas and process compressors, expanders and
pumps are primarily supplied to the energy
industries (including oil and gas, conventional
and renewable power generation, hydrogen etc.),
as well as industrial gases. The main equipment
solutions are single- and multi-stage centrifugal
compressors, expanders and pumps, comple-
mented by oil-free gas screw compressors used
by the Marine and LNG carrier industry.
Air and gas treatment equipment and
medical air solutions
Dryers, coolers, gas purifiers and filters are sup-
plied to produce the right quality of compressed
air or gas. In addition, the offering includes solu-
tions for medical air, oxygen and nitrogen gener-
ation as well as systems for biogas upgrading.
Principal product development and
manu facturing units are located in:
Belgium, the United States, China, India,
Germany and Italy.
Atlas Copco Group 2023 22
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Compressor Technique
Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAR in Review – COmpReSSOR teChnique
Vacuum Technique
The market for vacuum equipment weakened markedly, primarily due to lower investment levels in
the semiconductor and flat panel industry, while the demand for vacuum service increased. The
business area remained focused on innovation and introduced several new products to the market,
including products enabling customers to reduce their environmental footprint. Investments were
also made in market presence and production.
Market development
The overall demand for vacuum equipment and
services weakened markedly, primarily due to
lower investment levels in the semiconductor and
flat panel industry. Organically, the order intake
decreased by 20%.
Despite an overall lower demand, the service
business held up well, and order volumes to the
semiconductor and industrial customers
increased, with growth in all regions.
Order volumes for equipment decreased, pri-
marily due to significantly lower demand from the
semiconductor and flat panel display industry.
This was a result of customers’ lower investment
levels in all major regions.
The order volumes for equipment to industrial
and scientific vacuum customers also decreased
with lower order intake in all major regions
except North America, where the order intake
increased.
Market presence and organizational
development
While the general business climate weakened,
the business area remained committed to inno-
vation to increase customer values. Several new
products were introduced to the market during
the year, both for the semiconductor and flat
panel industry, and for industrial and scientific
vacuum equipment applications. Investments
were also made to strengthen market presence,
digitally and offline, the latter particularly
in Asia.
Sales bridge Orders received Revenues
2022, MSEK 41 213 38 941
Structural change, % +4 +4
Currency, % +3 +3
Organic*, % –20 +3
Total, % –13 +10
2023, MSEK 35 723 42 812
* Volume, price and mix
Revenues, MSEK
2022: 38 941
42 812
Operating profit margin
2022: 21.6%
22.4%
Return on capital employed
2022: 24%
22%
The business area remained focused on reducing
the environmental footprint of its operations.
To support customers in their sustainability ambi-
tions, the business area further commercialized
its product offer enabling reduced environmental
footprint, with digital monitoring systems
enabling reduced energy consumption and gas
recovery in the customers’ production process
as two examples.
The business area made investments in a
production facility for abatement systems in Asan
City, South Korea, in an extension of production
of dry vacuum pumps in Qingdao, China, and in
further automation of a production unit for
industrial vacuum pumps in Cologne, Germany.
The business area made in total
five acquisitions in 2023:
• CVS Engineering GmbH, a Germany-based
manufacturer of industrial vacuum pumps and
blowers for mobile use with 76 employees.
• James E. Watson & Co., a US-based distributor
of vacuum equipment and service solutions
with 7 employees.
• Shandong Bozhong Vacuum Technology Co.,
Ltd, a Chinese manufacturer of liquid ring
pumps and systems with 116 employees.
• Trillium US Inc., a US-based vacuum service
provider with 140 employees.
• ZEUS Co., Ltd. a Korean distributor and service
provider with 59 employees.
For more information see page 94.
Revenues, profits and returns
Revenues increased 10% to MSEK 42 812
(38 941), corresponding to a 3% organic increase.
The operating profit increased 14% to MSEK
9 607 (8 407), corresponding to a margin of
22.4% (21.6). The margin was positively affected
by currency, and by the combination of volume
price mix and other, while dilution from acquisi-
tions affected the margin negatively. Return on
capital employed was 22% (24).
0
12 000
24 000
36 000
48 000
60 000
20232022202120202019
0
5
10
15
20
25
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2023 23
the yeAR in Review – vACuum teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
• Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
The market
Vacuum and abatement solutions are required
in several of applications where the pressure
needs to be below atmospheric pressure and/or
the environment needs to be clean.
The Vacuum Technique business area sells
products, systems, and services across several
targeted market sectors.
The market can be categorized into semicon-
ductor, industrial vacuum and scientific vacuum.
However, each of these sectors contain several
sub-sectors and specific applications.
Vacuum products include a broad range of
dry pumps, turbomolecular pumps and other
vacuum pumps. These are used to create highly
controlled, low-pressure, particle-free environ-
ments in a diverse set of manufacturing pro-
cesses. Such processes include semiconductor,
flat panel display, LED and solar, glass and optical
coating, scientific instruments used in life
science, research institutes focused on renew-
able energy, high-energy lasers, nano technology,
pharma ceuticals, heat treatment, lithium-ion bat-
teries, and food processing and packaging.
Abatement systems include stand-alone and
customized solutions which integrate vacuum
and exhaust management technologies. Abate-
ment is required both to prevent adverse chemi-
cal re actions within production processes and to
comply with strict regulatory emission controls.
The business area also provides value-added
services including equipment monitoring, field
and on-site servicing, remanufacturing, service
upgrades and provision of spare parts and oils.
Market trends
• Increased use of demanding materials and
extreme working temperatures in processes
for semiconductor and industrial production
• Focus on energy-efficiency
• Stricter regulatory emission standards
• Increased demand for digitally supported
service offers to increase process uptime
• Focus on total solutions and total life-cycle cost
• Focus on circularity as a sustainability solution
Demand drivers
• Industrial production
• Investments in manufacturing of semiconduc-
tors, research and development equipment,
lithium-ion batteries, flat panel display and
solar energy products
• Increase in vacuum requirements to support
new production processes
• Demand for energy-efficient vacuum pumps
• Customers’ equipment utilization
Vision and strategy
The vision is to be First in Mind—First in Choice
for vacuum and abatement solutions. The strat-
egy focuses on technology leadership, market
leadership and agility, to support growth. This is
done by focusing on product research and devel-
opment programs together with deployment of
highly innovative products and services. Contin-
ued execution of market leadership will be done
by an organization focused on agility, growing
market share in our traditional heartlands, and
new applications as well as further as well as
further expansion of the geographical footprint.
Additionally, the business area has a strong
focus on developing the service business and an
efficient and flexible global operations footprint.
Strategic activities
• Increase market coverage and improve
presence in targeted markets and segments
• Fast introduction of highly innovative products
and services offering better value and
improved energy efficiency
• Increase market penetration and coverage
through brand portfolio management
• Perform more service on a higher share of the
installed base of equipment
• Invest in service presence and production
presence close to customers
• Increase organizations’ agility and operational
efficiency
• Invest in people and competence development
• Grow through strategically attractive
acquisitions
Competition
Vacuum Technique’s principal competitors are:
Semiconductor market:
DAS Environmental Expert, Ebara, Kashiyama,
Pfeiffer Vacuum, Shimadzu Corporation.
Industrial and scientific market:
Ingersoll Rand, Pfeiffer Vacuum, and Busch.
Market position
A global market leader for vacuum and
abatement solutions.
Revenues by region
Asia/Oceania, 58%
North
America, 25%
Africa/
Middle East, 1% Europe, 16%
Service, 1%
General manu-
facturing, 12%
Process
industry, 26%
Electronics, 59%
Other, 2%
Share of revenues
Equipment, 77%Service, 23%
Orders received by customer category
Atlas Copco Group 2023 24
the yeAR in Review – vACuum teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
• Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Vacuum Technique: Products and applications
Oil-sealed rotary vane vacuum pumps
The latest generation of oil-sealed rotary vane
pumps has been refined to produce a better
quality of vacuum while extending the pressure
range over which the pump can operate. They
are used in a wide variety of industrial, and
research and development applications.
Dry vacuum pumps
Dry pumps are oil-free pumping mechanisms
to create vacuum environments. They use no
lubricants within the pumping mechanism and
have a series of available monitoring and control
options. Dry pumps are used extensively in many
semiconductor applications, as well as in indus-
trial processes such as metallurgy, coating, dry-
ing, mobile applications and solar. They are also
used in scientific instruments such as scanning
electron microscopes.
Turbomolecular pumps
In turbomolecular pumps, or turbo pumps, a
turbine rotor spins rapidly to create vacuum. The
defining feature of a turbo pump is the high rota-
tional speed. These pumps are typically used in
conjunction with primary wet or dry pumps.
They are commonly used in semiconductor appli-
cations, research and development, industrial
applications, and high energy physics.
Dry vacuum pump for industrial applications
Integrated
abatement
system used
in the semi-
conductor
industry
Turbomolecular
pump for the
semiconductor
and flat panel
industry
The Vacuum Technique business area offers an extensive range of vacuum
and abatement solutions to the market.
INNOVAT IO N S DUR ING 202 3
Several new products were introduced
during the year, including:
DZS 600-1200 VSD+, a new range of dry
claw vacuum pumps for industrial applica-
tions, providing high energy efficiency and
low noise level for customers.
Leybold PENNINGVAC PTR 90/225 RN,
a new range of pressure gauges offering
high vacuum measuring range, flexibility,
and a compact design.
Edwards STPiXA4507, a new turbomolecu-
lar pump for the flat panel display industry,
offering safe management of high flows of
process gas in a small format.
DZS A & DZS VSD+, a new generation
dry claw pumps for the general industry
offering low noise levels, high performance
and reliability thanks to internal temperature
control and a patented smart algorithm.
MANAGEMENT
vacuum technique, December 31, 2023
Liquid ring vacuum pumps
Liquid ring pumps are equipped with a fixed
blade impeller. As the impeller rotates, the liquid
forms a ring around the circumference of the
casing. Standard liquid ring vacuum solutions are
perfect for use in humid, dusty, and dirty environ-
ments commonly found in industrial processes,
including food and beverage, mining, chemicals,
oil, steel, cement, plastics and textiles.
Abatement and integrated systems
Abatement systems are used to manage gases
and other process by products from dry pump
exhaust. Abatement is required to prevent
adverse chemical reactions within production
processes and to comply with strict regulatory
emission controls. Abatement and integrated
systems are primarily used in semiconductor, flat
panel display, solar and LED applications.
Cryogenic pumps
Cryogenic pumps create vacuum by condensing
(freezing) gas onto special arrays of cryogenically
cooled surfaces within the pump envelope. The
temperature of the surfaces can be below
20K/–250°C to enable the capture of most gas
species. Cryogenic pumps are used in a spectrum
of high-technology research applications as well
as in manufacturing of semiconductor, flat panel,
and optical devices.
Business Area
President
Geert Follens
Vacuum Technique
Service, President
Eckart Roettger
Semiconductor
Service, President
Paul Neller
Semiconductor,
President
Koen Lauwers
Semiconductor
Chamber Solutions,
President
Martin Tollner
Scientific Vacuum,
President
Carl Brockmeyer
Industrial Vacuum,
President
Andries Desiron
Principal product development and manu facturing
units are located in:
The United States, Mexico, the United Kingdom, Czech
Republic, Germany, South Korea, China and Japan.
Atlas Copco Group 2023 25
the yeAR in Review – vACuum teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
• Vacuum Technique
Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Industrial Technique
The market for equipment and services was favorable, especially in the first half of the year. Several new
products were introduced to the market and the order intake for both equipment and services increased.
The business area continued to invest in innovation and market presence, and intensified its focus on
reducing its environmental footprint as well as on supporting customers in their sustainability ambitions.
Market development
The overall demand for the business area’s
equipment and service was solid, especially in
the first half of the year. In total, order volumes
increased with 9% organically.
The order intake for service increased with
noticeable growth in all major regions.
The demand for industrial assembly and vision
solutions to the automotive industry increased,
and solid order growth was achieved, supported
by several investment projects at customers’
related to production of electric vehicles and
automation, in the beginning of the year.
Order volumes for industrial assembly and
vision solutions for the general industry also
increased, driven by increased demand from
several customer segments such as off-highway,
aerospace, and applications for solar power.
In total, the order intake for equipment
increased in all regions.
Sales bridge Orders received Revenues
2022, MSEK 26 070 23 007
Structural change, % +0 +0
Currency, % +4 +5
Organic*, % +9 +19
Total, % +13 +24
2023, MSEK 29 497 28 453
* Volume, price and mix
Revenues, MSEK
2022: 23 007
28 453
Operating profit margin
2022: 20.0%
21.7%
Return on capital employed
2022: 17%
21%
Market presence and organizational
development
The business area continued to invest in innova-
tion with an increased number of employees in
research and development. The product offering
was also strengthened as several new products
were introduced to the market.
The focus on increasing online and offline
market presence continued, especially with a
focus on customer segments contributing to a
low-carbon society, such as battery production.
To improve support for the customers and
increase efficiency, lead generation, and cus-
tomer support were further digitalized. The abil-
ity to create tangible customer value through the
service offering was strengthened, with a contin-
ued focus on developing connected products.
Several activities were carried out to reduce
the environmental footprint of the business
area’s own operations and to support customers
in their sustainability ambitions. Intensified ESG
training for local managers within the organiza-
tion and continued electrification of the product
offering are two examples.
Investments were made in an innovation cen-
ter and office facility for machine vision solutions
in Darmstadt, Germany, and in a new production
facility and R&D center in Shanghai, China.
The business area made one acquisition
in 2023:
• Extend3D GmbH, a German developer of
augmented reality solutions providing worker
guidance for industry customers using laser
and video projection, with 16 employees.
For more information see page 94.
Revenues, profits and returns
Revenues increased 24% to MSEK 28 453
(23 007), corresponding to a 19% organic
increase. The operating profit increased 35%
to MSEK 6 183 (4 597), and the operating margin
reached 21.7% (20.0). The main explanation
for the higher margin was increased organic
revenues, while currency affected the margin
negatively. Return on capital employed was
21% (17).
0
10 000
20 000
30 000
20232022202120202019
0
10
20
30
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2023 26
the yeAR in Review – induStRiAl teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
Vacuum Technique
• Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
The market
The global market for industrial power tools and
assembly systems with related services has a
large number of participants with a wide range of
products in different applications such as assem-
bly of parts, drilling and material removal. Cus-
tomers are found in industries such as the auto-
motive industry, off-highway vehicles, the elec-
tronics industry, aerospace, appliances, the
energy sector, and general industrial manufac-
turing. In particular, the business area has been
successful in developing advanced electric indus-
trial tools and systems that assist customers in
achieving fastening according to their specifica-
tions and minimizing errors and interruptions in
production.
With an increasing demand for electric vehi-
cles, battery production, and a growing use of
lighter materials, the automotive industry looks
to innovative assembly solutions. The market
demands new assembly technologies such as
dispensing of adhesives and sealants and self-
pierce riveting.
The market for machine vision becomes
increasingly important, driven by a growing
demand for automation, quality and productivity
in industrial production. Machine vision solutions
are used in discrete production, such as the auto-
motive industry, and in continuous processes
production, such as metal and paper production,
advanced material manufacturing, and solar
panels.
Market trends
• Automation in customers’ production
• Digitalization and demand for connectivity in
production
• Increased customer focus on reducing CO2
emissions
• Increased demand for electric vehicles
• Higher requirements for productivity, flexi bility
and ergonomics, and increased demand for
in-line quality control
• Increased focus on renewable energy
and storage
• Use of light-weight material in
transportation-related industries
Demand drivers
• Capital expenditure for automotive and
general industrial production
• Customer investments in new production
lines for new products
• Customer investments in more efficient pro-
duction, e.g. quality assurance and flexible
automation
• Increased production volumes at customers
drive the need for service
• Investments in customer segments’ contribu-
tion to transformation to a low-carbon society
Vision and strategy
The vision is to be First in Mind—First in Choice as
a supplier of industrial power tools, joining and
dispensing solutions, machine vision, and related
services. The strategy is to continue to grow the
business profitably by building on technological
leadership and continuously offering products
and services that improve customers’ productiv-
ity, flexibility, quality, energy efficiency, safety, and
ergonomics. Key strategic initiatives include
adjusting the product offer to meet increased
automation in customers’ production processes,
and providing additional service, know-how and
training.
The business area is also increasing its pres-
ence in targeted geographical markets. The pres-
ence is enhanced by a brand portfolio strategy.
The business area is actively looking at acquiring
complementary businesses. Growth should be
achieved in a way that is economically, environ-
mentally and socially responsible.
Strategic activities
• Increase market coverage and improve
presence in targeted markets/segments
• Develop new innovative products and
solutions, offering increased quality and pro-
ductivity, and improved ergonomics
• Develop products helping customers to reduce
their environmental impact
• Further increased focus on automation and
digitalization, through connected products and
solutions, to support customers’ productivity
and flexibility
• Increase the share of proactive services and
the share of service on the installed base
• Increase operational efficiency
• Invest in people and competence development
• Acquire complementary businesses and inte-
grate them successfully
Competition
Industrial Technique’s principal competitors are:
Industrial tools business:
Apex Tool Group, Ingersoll Rand, ESTIC, and
Bosch
Adhesive and sealant equipment:
Nordson, Graco, Viscotec, BD Tronic, and Dürr.
Self-pierce riveting:
Stanley Black & Decker, and Böllhoff.
Machine vision:
Zeiss, ISV, Coherix, Ametek, and Dr. Schenk.
Market position
A leading market position globally in most of its
operations.
Revenues by region
Asia/Oceania, 30% North
America, 32%
Africa/
Middle East, 1%
Europe, 34%
South
America, 3%
Other, 9% General manu-
facturing, 22%
Construction, 2%
Service, 6%
Electronics, 4%
Automotive, 54%
Process industry, 3%
Share of revenues
Equipment, 73%Service, 27%
Orders received by customer category
Atlas Copco Group 2023 27
the yeAR in Review – induStRiAl teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
Vacuum Technique
• Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Industrial Technique: Products and applications
Industrial assembly tools and solutions
Advanced assembly tools and systems are used
in the automotive industry and general industrial
production such as aerospace, off-highway, and
electronics. The business area provides a broad
range of pneumatic, hydraulic and electric
assembly tools, control systems, and associated
software for safety-critical tightening. These sys-
tems generally allow customers to collect, record,
and process assembly data in their production.
Self-pierce riveting solutions, adhesive
dispensing and flow drill fastening
equipment
Self-pierce rivets, adhesive, and flow-drill fasten-
ers are primarily used in the automotive industry,
driven by the increased use of light materials and
batteries in car manufacturing. The business area
offers self-pierce riveting tools and rivets, dis-
pensing equipment for adhesives and sealants,
and flow-drill fastening equipment.
Adhesive dispensing
system with an
integrated vision
system
The Industrial Technique business area offers the most extensive range of industrial
power tools, assembly systems, and machine vision solutions on the market.
INNOVAT IO NS DU R ING 202 3
Several new products were introduced
during the year, including:
ToolsControl, a new server-based control-
ler for industrial assembly tools, that offers
a single-point connection to customers’
systems, reduces the need for physical
controllers, and saves floor space.
MULTI, a new assembly solution for
multi-spindle applications that offers
remote control management and can
control up to 40 tools.
TorcFLex, a new range of hydraulic
wrenches that enables the opening and
closing of critical bolted flanges during
maintenance and construction work for
wind turbine, gas, and general energy
customers.
Paint scan, a robot-based and fully auto-
mated machine vision system for paint
inspection in the automotive industry that
ensures detection of quality defects, while
process analytics provides feedback to
ensure continuous process improvement.
MANAGEMENT
industrial technique, december 31, 2023
Material removal tools, drills and other
pneumatic products
Pneumatic and electric industrial grinders, drills
and percussive tools are used in several indus-
trial applications, for example in metal fabrication
and aerospace production. The business area
also offers airline infrastructure for optimization
of pneumatic tools, and air motors that are used
as drive units in various industries and applica-
tions.
Machine vision solutions
Machine vision is a key technology for industrial
automation and digital manufacturing. The offer
is focused on quality control of surface inspection
and 3D vision systems for inline metrology, qual-
ity control, and robot guidance. The combination
of high-performance cameras, illumination, and
vision and analytics software, allows customers in
a broad range of industries to improve quality
and automate production.
Business Area
President
Henrik Elmin
Industrial Technique
Service, President
Oskar Sörensson
Motor Vehicle
Industry Tools and
Assembly Systems,
President Lars Eklöf
General Industry
Tools and Assembly
Systems, President
Håkan Andersson
Chicago Pneumatic
Tools, President
Ivo Maltir
Industrial Assembly
Solutions, President
Olaf Leonhardt
Machine Vision
Solutions, President
Tomas Lundin
Principal product development and
manu facturing units are located in:
Sweden, Germany, Hungary, the United Kingdom,
France, China, Japan, and the United States.
Handheld battery
tool for assembly
applications
Vision system for
quality control
Atlas Copco Group 2023 28
the yeAR in Review – induStRiAl teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
Vacuum Technique
• Industrial Technique
Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Power Technique
The overall underlying demand for equipment, service, and specialty rental solutions weakened.
However, due to a strong service and specialty rental business and contributions from acquisitions,
the total order intake for the business area increased. The business area continued to invest in
innovation, market presence, digitalization, and solutions to reduce customers’ environmental
footprint. The product offer was also further strengthened through acquisitions.
Market development
The overall underlying demand for equipment,
service, and specialty rental solutions, weakened.
However, due to a strong service and specialty
rental business and contributions from acquisi-
tions, the total order intake increased. The
organic order development was –1%.
Order volumes for the specialty rental business
increased noticeably throughout the year, and
solid order growth was achieved in most regions.
The demand for service was also strong and the
order intake increased markedly, driven by
increased order volumes in all regions.
The order intake for equipment increased sig-
nificantly in the first quarter of the year, driven by
increased demand from equipment rental com-
panies in North America, whereas the increased
order intake in the remaining quarters was a
contribution from acquisitions. During the year,
order volumes for generators decreased while
orders for portable compressors remained
largely unchanged.
Sales bridge Orders received Revenues
2022, MSEK 21 783 19 053
Structural change, % +21 +18
Currency, % +4 +5
Organic*, % –1 +18
Total, % +24 +41
2023, MSEK 26 940 26 899
* Volume, price and mix
Revenues, MSEK
2022: 19 053
26 899
Operating profit margin
2022: 18.5%
19.3%
Return on capital employed
2022: 25%
22%
Market presence and organizational
development
The business area continued to invest in innova-
tion and in online and offline market presence in
targeted markets and segments. Several new
products were also introduced to the market
during the year. The work to develop and inte-
grate the businesses that were acquired in
2022 continued according to plan.
The business area continued to develop its
offering to support customers in reducing their
footprint, for example through further invest-
ments in equipment powered with HVO (hydro-
treated vegetable oil), the use of engines in
new products complying with stricter emission
standards, and the launch of a battery-driven
portable compressor.
During the year, a new center was opened to
support improved customer uptime, for example
by monitoring and analyzing data from con-
nected products at the customers’ sites. The
center will also monitor and analyze data from
the equipment in the business area’s specialty
rental fleet.
During the year, investments were made in
a service center in Stockholm, Sweden, as well
as in rental depots in Para, Brazil, Kolkata, India,
and Arequipa, Peru.
The business area made in total
three acquisitions in 2023:
• National Pump & Energy, an Australia-based
company providing dewatering, environ-
mental services, and water treatment solu-
tions, with 420 employees.
• Climorent, a specialty rental provider of
industrial cooling solutions based in Spain,
with 15 employees.
• Sykes Group Pty Ltd (Sykes), an Australian
dewatering pump manufacturer with
123 employees.
For more information see page 94.
Revenues, profits and returns
Revenues increased 41% to MSEK 26 899
(19 053), corresponding to a 18% organic
increase. The operating profit increased 47%
to a record MSEK 5 191 (3 525), corresponding
to a margin of 19.3% (18.5). The main explana-
tion for the higher margin was increased
organic revenues. Currency had no material
effect on the operating margin. Return on
capital employed was 22% (25).
0
5 000
10 000
15 000
20 000
25 000
30 000
20232022202120202019
0
5
10
15
20
25
30
MSEK %
Orders
received
Revenues
Operating
margin
Orders received, revenues and operating margin
Atlas Copco Group 2023 29
the yeAR in Review – POweR teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
Vacuum Technique
Industrial Technique
• Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
The market
The market for portable air, power, and flow,
and industrial flow solutions includes a large
number of participants offering a comprehensive
product range for different applications. The
Power Technique business area focuses on a
selected number of applications.
Multiple segments are served by the business
area’s offering. General and civil engineering
contractors, often involved in infrastructure pro-
jects, demand light construction tools. Mobile
compressors, generators, energy storage sys-
tems, light towers, and pumps provide reliable
power for tools and applications in the construc-
tion sector. In addition, the business area focuses
on several industrial flow applications through its
metering and dosing pump product offer, and
temporary air, power, flow, steam, and nitrogen
are offered to the specialty rental market.
Market trends
• Higher requirements regarding productivity,
flexibility, and ergonomics
• Increased customer focus on reducing CO2
emissions
• Electrification of portable equipment
• Continued increased customer focus on safety
• Equipment connectivity
• Increased demand for service
support/contracts
Demand drivers
• Infrastructure investments
• Investment in products that contribute to the
transformation to a low-carbon society
• Industrial production
• Investment in industrial production facilities
• Emergency relief efforts
• Environmental regulations
Vision and strategy
The vision is to be the First in Mind—First in
Choice provider of power and flow solutions
for sustainable productivity.
The strategy is to grow by developing the
market position and presence as a global sup-
plier within portable compressors, pumps,
generators, and industrial pumps, as well as light
towers, along with a range of complementary,
market specific, niche products, such as
high-pressure boosters. The strategy also
includes further development of specialty-rental
services and of the service business; increasing
revenues by offering more services to more
customers. Growth should be achieved in a way
that is economically, environmentally, and
socially responsible.
Strategic activities
• Increase market coverage and improve
presence in targeted markets/segments
• Develop new sustainable products and solu-
tions offering enhanced productivity, safety
and reduced environmental impact
• Invest in design, development and production
capacity in growth markets
• Develop more competitive offerings with
different value propositions
• Perform more service on a higher share of
the installed base of machines
• Develop the service business
• Increase operational efficiency
• Invest in employees and competence
development
• Acquire complementary businesses and
integrate them successfully
Competition
Power Technique’s principal competitors include:
The portable power market:
Doosan, Generac, Kaeser, and Sullair. In addition,
there are a large number of local and regional
competitors.
The industrial pump market:
Milton Roy, and Bran+Luebbe
Market position
A leading market position globally in most of
its operations.
Revenues by region
Asia/Oceania, 22
%N
orth
America, 28%
Africa/
Middle East, 8%
Europe, 35%
South
America, 7%
General manu-
facturing, 19%
Other, 19%
Construction, 30%
Service, 5%
Process
industry, 27%
Share of revenues
Equipment, 57%Service, 15%
Service
(Specialty
Rental), 28%
Orders received by customer category
Atlas Copco Group 2023 30
the yeAR in Review – POweR teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
Vacuum Technique
Industrial Technique
• Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Power Technique: Products and applications
Industrial flow
Positive displacement electric pumps are used
in a broad range of different industries.
Portable power
Portable generators fulfill a temporary need for
electricity, primarily in construction applications.
Other common applications are power supply for
events, emergency power and power in remote
locations. Lighting towers provide light for safe
operations 24/7.
Portable flow
Portable electric and diesel-driven pumps as well
as sub mersible electric pumps, primarily for
water.
Portable electric compressor
Diaphragm
metering pump
for industrial use
Portable pump
The Power Technique business area offers a range of products across multiple
industries including, industrial manufacturing, civil engineering, demolition,
and exploration drilling.
INNOVAT IO N S DUR ING 202 3
Several new products were introduced
during the year, including:
E Pumps (E PAS and E PAC), a new series
of electric-driven dewatering pumps,
offering low noise levels, low CO2 emis-
sions, and up to 40% lower total cost
of ownership compared to traditional
diesel- powered counterparts.
LEWA LCD Ecosmart Plus, a new dia-
phragm metering pump, offers high flow
and high precision metering of a wide
variety of fluids, while maintaining high
efficiency.
X-AIR+ 750-25, 1200-40, new range of
portable compressors for geothermal
and foundation drilling that offers 10%
more efficiency and better fuel economy
than previous models.
ZBC1000-1200m, a new energy storage
system, using different power sources,
such as solar, enables micro-grid creation
at infrastructure construction sites, can
support hybrid power plants, and stabi-
lizes grid maintenance work.
MANAGEMENT
Power technique, December 31, 2023
Portable air
Portable oil-injected compressors are primarily
used in construction applications where com-
pressed air is used as a power source for equip-
ment, such as pneumatic breakers and rock drills.
Portable oil-free compressors are rented by cus-
tomers to meet a temporary need for oil-free air,
primarily in industrial applications. Electric porta-
ble air compressors generate less noise than
compressors with combustion engines and are
ideal for low-noise and emission zones or indoor
applications.
Construction and demolition tools
Hydraulic, pneumatic, and gasoline-powered
breakers and drills used in construction,
demolition and mining businesses.
Business Area
President
Andrew Walker
Power Technique
Service, President
Stefaan Vertriest
Specialty Rental,
President Tim Last
Portable Air,
President
Bert Derom
Power and Flow,
President
Mikael Andersson
Principal product development and manu facturing units are located in:
Belgium, Germany, Spain, the United States, China, and India.
Atlas Copco Group 2023 31
the yeAR in Review – POweR teChnique
Introduction
This is Atlas Copco Group
The year in review
Business areas
Compressor Technique
Vacuum Technique
Industrial Technique
• Power Technique
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
A sustainable approach to delivering lasting value
At the Atlas Copco Group, we are committed to being part of the solution for a better tomorrow.
By taking accountability for our impact and by acting in an ethical way in all our business
relationships, we strive to bring value to both our customers and society as a whole.
positions. Stakeholders also gave higher priority to issues relating
to climate change, such as carbon impact, circular business mod-
els, and a life-cycle approach to product development. Water use,
community engagement and taxes were identified as somewhat
less material.
See below the sustainability topics that were identified as most
material in the 2021 materiality assessment. They have been cate-
gorized as topics that are central to our long-term value creation,
to building trust in the Atlas Copco Group and our business, and
topics that are central in delivering on our strategy and building
business resilience. More information on how the materiality
assessment was conducted is available on the Group’s website,
www.atlascopcogroup.com.
New sustainability reporting directive
The Atlas Copco Group is subject to the Corporate Sustainability
Reporting Directive (CSRD) and will report according to the Euro-
pean Sustainability Reporting Standards (ESRS). In preparation of
the new sustainability reporting directive, the Group conducted a
double materiality assessment in 2023. The outcome and the iden-
tified material sustainability topics will form the basis of the Group’s
sustainability report in 2024.
on society and the environment through our operations and busi-
ness relationships. The stakeholders also help identify sustainabil-
ity risks and opportunities that may affect the Group’s long-term
value creation and business performance.
The outcome of the assessment is discussed in internal work-
shops involving a broad representation of experts and functions,
including the specialist Safety, Health, Environment and Quality
(SHEQ) function. It is also reviewed by Group Management and
the Board.
We use the materiality assessment, together with the UN Global
Compact’s principles, the UN Sustainable Development Goals, and
risk and opportunity assessments, in reviewing our sustainability
ambitions and focus areas. It also forms the basis of the Group’s
sustainability targets as presented on page 6, and of the Group’s
sustainability reporting.
Material sustainability topics
The Group conducted a materiality assessment in 2021. In relation
to the previous materiality analysis, some issues were deemed to
have become more material and others less material. For example,
stakeholders placed increased focus on diversity and inclusion, tal-
ent development and retention, and gender balance in leadership
Sustainability is a central part of Atlas Copco Group’s mission and
strategic direction, and embedded in our everyday business. We
are committed to contributing to a sustainable development and to
being part of the transformation to a low-carbon society. This
means that we take responsibility for managing the environmental
and social impacts of our operations and our value chain. We focus
our efforts to the areas where we have identified our largest impact
and where we see significant risks or opportunities. These are also
areas that are central to delivering on our strategy and building
business resilience, as well as creating value to our key stakehold-
ers. Allocating resources and working systematically in these areas
help us reach our mission of achieving sustainable, profitable inclu-
sive growth.
Material impacts, risks and opportunities
A materiality assessment is conducted regularly to identify sustain-
ability risks and opportunities as well as to define the Group’s most
significant impact on the environment and society, including
human rights.
In this process, the perspectives of key stakeholders are gained
through surveys and interviews where they are asked to prioritize
areas where the Atlas Copco Group has actual or potential impact
Value creators
These are topics that are central to long-
term value creation. Managing these
issues help position the Atlas Copco
Group as a leader within sustainability.
Trust builders
Working with these topics help build
trust in the Group’s business. Our ambi-
tion is to be transparent and to keep
pace with stakeholder expectations.
Strategic enablers
These are topics that play a central
role to deliver on the Group’s business
strategy. Working with them should
build and ensure business resilience.
Topics
– Business ethics and integrity
– Occupational health and safety
– Product quality and safety
– Life-cycle approach to product
development
– Product carbon impact
Topics
– Energy use and efficiency
– Human rights
– Responsible value chain
– Data protection and privacy
– Climate impact along the value chain
Topics
– Diversity and inclusion
– Talent development and retention
– Gender balance in leadership
positions
– Circular business models
Sustainability is embedded in
our everyday business. We are
committed to contributing to a
sustainable development and to
being part of the transformation
to a low-carbon society.
Atlas Copco Group 2023 32
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Stakeholder engagement
As a global Group, it is vital to ensure accountability for our actual
and potential impact on the economy, environment and people.
The Group Sustainability team and other Group functions continu-
ally and systematically engage in dialogues with a wide range of
internal and external stakeholder groups. This helps us under-
stand, prioritize and manage the impacts of our organization as
well as the impacts along our value chain. It is also crucial to pro-
actively identify stakeholders’ concerns and expectations. Insights
from these dialogues are reported to Group management and
feed into our decision making processes to strengthen our strategy
and improve our response.
Our methods of engagement with key stakeholder groups and
the issues and concerns raised by them are presented in the table
to the right.
Sustainability governance
The Board of Directors has the overarching responsibility for over-
seeing the Atlas Copco Group’s strategic direction, including finan-
cial and non-financial strategies and targets to ensure a sustain-
able, profitable inclusive growth. The Group’s performance in rela-
tion to the targets is reported quarterly to the Board by the CEO.
The Board is the owner of the Group’s Code of Conduct which regu-
lates how employees, and the Board itself, should act towards each
other and in relation to other stakeholders. The Board is also,
together with Group Management, responsible for the prepara-
tion, review and approval of the sustainability report, including the
material sustainability topics.
Each member of Group Management is responsible for the
implementation and follow-up of strategy and targets although the
CEO has the ultimate responsibility. Progress in relation to the tar-
gets is part of the variable compensation for members of Group
Management as well as for other employees. The Vice President
Sustainability is responsible for coordinating the Group’s sustain-
ability work and reports to the SVP Chief Communications Officer,
who is a member of Group Management.
Following Atlas Copco Group’s decentralized organizational
structure, implementation is handled mainly by the divisions, which
are separate operational units, and responsible for delivering
results in line with the business area’s strategies and targets. The
business areas and divisions set quantified targets for delivering on
the Group targets. The divisional presidents and general managers
are responsible for ensuring that targets are set as a part of their
three-year plans, and that progress is followed-up and reported to
the Group.
Safety, Health, Environment and Quality (SHEQ) managers sup-
port the sustainability work in the operational entities and divisions
while Sustainability Managers coordinate the efforts at business
area level.
At Group level, a sustainability team provides coordination and
support to the entire organization, working closely with each busi-
ness area’s SHEQ and sustainability representative. The Group’s
SHEQ council is chaired by a division president and consists of the
business area SHEQ managers and sustainability representatives,
the Vice President Sustainability, and representatives for HR, Hold-
ing and controlling. The SHEQ council comes together quarterly to
discuss actions, policies and guidelines to support the organization
in reaching set ambitions.
Code of Conduct
The Code of Conduct is the Group’s central guiding policy which
sets clear requirements to ensure that we conduct business with
the highest ethical standards and that we act with integrity, fairness
and respect in all operations. All employees, business partners, and
the Board of Directors are expected to adhere to the principles in
A sustainable approach to delivering lasting value, continued
Stakeholder group Key issues and concerns Method of engagement
Customers
• Product safety
• Product innovation
• Product carbon impact
• Product resource-efficiency and circularity
• Customer visits
• Surveys and interviews
• Customer events
• Digital channels
Investors, analysts,
shareholders
• Growth and profitability
• Risk management
• Climate and environmental impact
• Business ethics
• Gender balance
• Investor interaction
• Capital market days
• Annual general meeting
• Digital channels
• Financial reports and presentations
Employees
• Health and safety
• Diversity and inclusion
• Working conditions
• Competence development
• Compensation and benefits
• Yearly appraisal
• Employee surveys
• Work councils
• Employee representatives on the Board
Society
• Climate and environmental impact
• Social and environmental compliance
• Human rights
• Labor market issues
• Memberships in international collaborations
and industry initiatives
• Local engagement and media
• Digital channels
• Surveys and interviews
Business partners
• Occupational health and safety
• Labor conditions
• Human rights
• Business ethics
• Climate and environmental impact
• Collaborations with suppliers
• On-site evaluation and supplier audits
• Surveys and interviews
Atlas Copco Group 2023 33
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the Code. In cases where the Code of Conduct is stronger than
local laws and regulations, the Code should apply. The Code of
Conduct is based on the following international standards:
• United Nations International Bill of Human Rights
• The ILO Declaration on Fundamental Principles and
Rights at Work
• The United Nations Global Compact
• The OECD Guidelines for Multinational Enterprises
• UN Guiding Principles for Business and Human Rights
The Board of Directors is the owner of the Group’s Code of Conduct
and reviews it regularly. Its content has been updated, in recent
years, with topics including modern slavery, risk management,
circularity, data protection and privacy.
The Group’s Compliance Board oversees the implementation
and compliance with the Code of Conduct. The Compliance Board
includes two members of Group Management: the SVP Chief Legal
Officer and the SVP Chief Communications Officer, the VP Sustain-
ability, Corporate Counsel Compliance and representatives from
Holding. The Board also addresses training needs, risk assessments
and the action points related to the implementation of the UN Guid-
ing Principles.
All employees are required to complete a leader-led ethics train-
ing every two years and to annually sign a Code of Conduct compli-
ance statement. The Code of Conduct has been translated into
more than 30 languages and is available on the Group’s website.
Complementing policies and guidelines
The Code of Conduct is supported and complemented by
other Group policies and guidelines, such as:
• SHEQ policy: global Safety, Health, Environment and Quality
policy that ensures robust standards for safety and wellbeing,
as well as an environmental and quality perspective on techno-
logies, products and services to make sure these contribute
to a sustainable productivity for customers.
• Human rights statement: expands on the Group’s commitment
to respect and support human rights and defines procedures
to ensure compliance throughout the Group’s operations.
• Business partner criteria: significant business partners must
commit to following the Group’s Code of Conduct by signing
the Business partner criteria document which states the Group’s
expectations regarding business ethics, social, safety, health
and environmental performance.
Incentive schemes
The variable compensation is maximized to 80% of the base salary
for the President and CEO, 60% for Business Area Presidents, and
50% for other members of Group Management. Variable compen-
sation is linked to predetermined and measurable criteria which
can be financial or non-financial. Reducing the Group’s greenhouse
gas emissions in line with the Group’s science-based targets is
among the non-financial criteria.
ESG risk management
The Group’s enterprise risk management process is conducted
annually on divisional level, and includes ESG-related risks. The
results are aggregated on business area and Group level. An over-
A sustainable approach to delivering lasting value, continued
view of the Group’s key risks, including ESG risks, is described in the
section Risks, risk management and opportunities on pages 67–71.
Risk insights are provided to the divisions through risk assess-
ments performed by the Group’s holding companies, as well as
through the result of workshops by corporate functions. A few
workshops have for instance been conducted in respect of climate
change, human rights and compliance risks. ESG-related risks have
been further incorporated into the enterprise risk management
framework as well as the overall risk assessment process.
Management system standards
The Atlas Copco Group strives for all major operating units to be
triple-certified according to the management system standards
ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (occu-
pational health and safety). All business areas operate under triple
certificates supported by common management systems covering
a majority of the entities belonging to the business area.
All production units with more than 20 employees, and customer
centers and rental companies with more than 70 employees, are to
be triple certified according to these standards. See table below for
the status of ISO management system certifications held by units
that are required to be certified and by all Group units. Some of the
non-certified units are acquisitions still within the two-year time-
frame to comply, or newly restructured units. Some units which
are not yet triple-certified are in the process of becoming so, and
a smaller portion has so far not had the resources required to com-
mit to a triple certification.
ESG recognitions
In 2023, Atlas Copco Group received, among others, an AA rating in the
MSCI ESG Ratings assessment, Prime status by ISS ESG rating, and re-
mains a constituent of the FTSE4Good Index Series. Atlas Copco Group
scored a B by CDP for the climate-related disclosure and a B- for the
water-related disclosure.
Operating units
1)
with management system standards, % ISO 9001 ISO 14001 ISO 45001 Triple certification
Certified units (out of required) 86 77 75 73
Total workforce covered by certification (out of required) 92 87 84 83
Certified units (all production and distribution units) 81 67 63 62
Total workforce covered by certification (all production and distribution units) 94 86 80 80
1)
Including acquisitions.
Up to and including 2022, Atlas Copco Group measured and reported the percentage of operational units that were not triple certified. Starting in
2023, we instead report the percentage that is certified. The figures in the table above can therefore not be compared with previous years reporting.
Atlas Copco Group 2023 34
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
• Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
A sustainable approach to delivering lasting value, continued
Contributing to the United Nations’ Sustainable Development Goals
the Atlas Copco Group supports all of the un’s 17 sustainable Development Goals,
and have identified that we can contribute positively mainly to the following:
Gender equality
– Active promotion of diversity and inclusion
– Working to improve gender balance at all levels,
including Group-common goals for 2030
– Dedicated taskforces established by the
business area presidents and the CEO
Clean water and sanitation
– Local activities targeting water consumption
– Providing access to clean water and improved
sanitation through the employee-driven
initiative Water for All
– Group goal for continuous improvement
Affordable and clean energy
– Local activities to reduce CO2 emissions
– Installment of solar panels
– Switching to renewable electricity
– Improved logistics planning to avoid air freight
Decent work and economic growth
– Business partners must comply with our
Code of Conduct
– Child labor or modern slavery is not tolerated
– Compliance is assessed and audited
– The right to collective bargaining is ensured
Industry, innovation and infrastructure
– Development of energy-efficient products and
service
– All projects for new and redesigned products
must assess the product’s environmental impact
– Products are developed with a life-cycle
perspective
Responsible consumption and production
– Local activities targeted at reducing total
waste and increasing recycling
– Group-common goal for 2030
– Chemical handling follows strict protocols
– Conflict minerals are not accepted in components
– Screening and monitoring of our supply chain
Climate action
– Science-based targets for scope 1, 2 and 3
emissions
– Solutions to reduce customers’ energy
consumption and carbon emissions
– Local initiatives to lower our energy consumption
– Switching to renewable energy
– Selecting transportation methods to minimize
climate impact
Peace, justice and strong institutions
– All employees must sign compliance with our
Code of Conduct
– Training for employees in handling ethical
dilemmas
– Business partners must confirm compliance
with our Code of Conduct
External initiatives and membership
of associations
the Atlas Copco Group is a signatory to the un Global
Compact, a strategic policy initiative for businesses
that are committed to ten universally accepted princi-
ples in the areas of human rights, labor, environment
and anti-corruption. the Group is also active in a num-
ber of international organizations and industry collabo-
rations and initiatives, such as:
• The Stockholm Chamber of Commerce
• The International Council of Swedish Industry
• The Association of Swedish Engineering Industries
• Transparency International Sweden
• Pneurop – European Association of
Manufacturers of Compressors, Vacuum Pumps,
Pneumatic Tools and Air & Condensate Treatment
Equipment
• The Responsible Minerals Initiative
While the general objectives of these organizations are in
line with the Group’s interests, there may be differences of
opinion regarding specific issues. The memberships do
not indicate that the Group endorses all actions or policy
statements made by the respective organization.
Atlas Copco Group 2023 35
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Climate and environment
CLIMATE-RELATED DISCLOSURES
The purpose of Atlas Copco Group’s climate-related disclosures is
to describe how climate change could affect the Group short-,
medium and long-term. They also describe how the Group identi-
fies and manages climate risks as well as our role in mitigating cli-
mate change. In accordance with the recommendations of the Task
Force on Climate-Related Financial Disclosures (TCFD), the report is
based on two potential future climate scenarios and their impact in
terms of risks and opportunities over time.
Governance
The Board of Directors is responsible for the Group’s overall strate-
gic direction, organization, administration and management. This
includes climate-related risks and opportunities. The Board of
Directors have approved the science-based targets that were
adopted by the Group in 2021 and against which the climate-
related work is measured since 2022. Climate-related issues con-
cern several functions and areas of expertise in the organization.
At an operational level, risks and opportunities are managed by the
divisions and governed by Group Management and the Board.
Read more about corporate governance on pages 74–77.
Strategy
The Group has committed to reducing the greenhouse gas emis-
sions throughout the value chain in line with the goals of the Paris
Agreement. For our own operations, this means that we aim to
reduce emissions in line with keeping the global temperature rise
below 1.5 degrees. We will also reduce the emissions from our
value chain in line with keeping the temperature rise well below
2-degrees. The targets have been validated by the Science Based
Targets initiative and have been implemented during 2022.
The Atlas Copco Group operates based on the scenario of a tran-
sition towards a low-carbon society and we are well positioned to
take advantage of the opportunities such a scenario brings. Our
commitment to science-based targets for 2030, as well as many of
our products and solutions, also aim to support this transition.
More than 90% of the CO2 emissions from the Group’s value
chain are generated when the customers use our products. This is
where we have our biggest impact and we therefore focus on
developing highly energy-efficient products and solutions with a
low carbon footprint over their entire lifecycle. Further gains are
possible through the guidance we provide on how to use our prod-
ucts and through our service offer. However, as the majority of our
products run on electricity, the impact during the use-phase, and
thus their value-chain footprint, is affected by the availability of
renewable energy, which varies between countries and regions.
Many of our technologies and solutions are also used in indus-
tries and applications that are at the center of the transformation
to a low-carbon society. They are critical in the manufacturing of
electric vehicles and equipment for solar and wind power plants,
and a part in emerging technologies for energy production, energy
storage, carbon capture, smart manufacturing and more.
Climate scenario analysis
During 2023, climate-related risks and opportunities that have an
actual and potential impact on our business and strategy have
been identified and analyzed from a Group perspective based on
two climate scenarios, “rapid transition” and “business as usual”.
Group functions and internal subject matter experts, including
regional Holding functions, were consulted in the process. The
analysis covered the following time horizons: short term (0–3
years), medium term (until 2030), and long term (2030–2050).
The two different scenarios analyzed result in a variety of risks
and opportunities throughout our value chain. Identified risks and
opportunities are quantified in terms of potential financial impact
throughout the organization on a divisional level as well as, if con-
sidered relevant, from a business area and Group perspective. The
conclusions serve as insight for further risk identification, quantifi-
cation and management within the divisions. See page 37 for an
overview of our conclusions.
Risk management
Climate-related risks, such as physical risks for operational entities
or transition risks like market risks connected to products, and the
related financial implications, are assessed at the divisional level
and, when deemed relevant, included in the annual Enterprise Risk
Management (ERM) process. An aggregated analysis of the identi-
fied risks is presented annually to Group Management. Read more
about the risk management process on page 67.
Metrics and targets
The Group has implemented science-based targets covering the
entire value-chain. Our greenhouse gas emission reduction targets
are approved by the Science-Based Target initiative as being
aligned with the Paris Agreement. See pages 38–42.
Future development
We intend to further develop the climate risks and opportunities
assessment in close collaboration with the divisions, as part of an
even deeper integration of ESG risks in our ERM framework.
Atlas Copco Group 2023 36
the yeAr in review – sustAinAbility report
* A Representative
Concentration
Pathway (RCP)
is a greenhouse gas
concentration (not
emissions) trajectory
adopted by the
Intergovernmental
Panel on Climate
Change (IPCC). A
pathway describes
a possible climate
change scenario.
This scenario involves primarily physical risks, both for our
own operations but also throughout the value chain. A
changing climate implies greater acute physical risks due to
more frequent and/or more severe weather systems, such as
hurricanes and floods, that could impact suppliers, opera-
tions and transport in our industry. Greater chronic physical
risks from changing climate conditions, such as droughts
and rising sea levels, could also have an impact on the value
chain such as disruptions in production or logistics.
Both acute and chronic natural hazards may pose a risk to
plants and equipment, resulting in losses. These risks are
included in the Atlas Copco Group risk universe and dis-
cussed during onsite risk assessments, and are pointed out
during new project reviews. Physical risks are assessed at
site level and safety measures are taken if needed, as part of
the loss prevention program. The Group’s global network of
In the rapid transition scenario, the identified risks are pri-
marily market related and regulatory. As a provider of lead-
ing products and differentiated technology, and through
investments in research and development to develop new
solutions that improve our customers’ performance and
energy efficiency, Atlas Copco Group is well positioned to
manage such risks. The fundamental objective is to design,
and efficiently produce, new or improved products that pro-
vide tangible benefits for customers in terms of productivity,
energy efficiency, and/or lower life-cycle cost.
Market shifts toward a low-carbon economy may impact
the viability of certain sectors and products. The Group’s con-
tinuous work to increase the energy efficiency of our prod-
ucts helps mitigate these risks. This shift also represents an
opportunity to continue developing more energy-efficient
products and may give rise to new businesses and business
models. For instance, an increased investment in renewable
energy, through for example solar panels and windmills, and
RAPID TRANSITION SCENARIO
Rapid transition scenario
Fulfilling the Paris Agreement (RCP 2.6)*
• Temperature increase limited to 1.5–2 °C,
lower climate-related risk.
• Global GHG emissions are reduced by 45%
by 2030 and reach net zero by 2050.
• Energy sources are renewable, diversified,
stable and accessible.
• Increased investments in carbon capture,
low- and zero-carbon technologies, increased
energy and material efficiency, socio-cultural
and behavioral changes.
• Effective policies, regulatory and economic
instruments (e.g., carbon pricing), that support
GHG emission reduction.
• Increased equity, inclusion, social and climate
justice as these aspects are prioritized in the
adaptation and mitigation actions.
BUSINESS AS USUAL SCENARIO
the surge in production of electrical vehicles, present oppor-
tunities since Atlas Copco Group provides products and ser-
vices to these industries.
Climate and energy policy will gradually be sharpened and
favor companies that deliver energy-efficient products and
comply with sustainable practices. Among the risks are
increased energy prices and taxes, and regulations related to
CO2 or other greenhouse-gas emissions. As the Group invests
in research and development, aiming to bring new innovative
products and solutions to the market, more strict regulations
will likely offer opportunities for the Group.
The scenario built on a rapid transition towards a low-carbon
society is considered to be well aligned with the trends and
opportunities that Atlas Copco Group sees in terms of low
carbon technologies. The opportunities identified within this
scenario are considered to be relevant from both a short-,
medium- and long-term perspective where the longest time-
frame considered is up until 2050.
suppliers, provides resilience against local or regional dis-
ruptions. The logistics systems that the Group relies on
for transportation of goods are thought to be resilient to
physical risks as alternatives exist.
The Group’s loss prevention program supports the
decision-making process for highly exposed sites, and
the prioritization of major investments. For instance,
based on a conducted analysis, recommendations have
been made to mitigate risks of flooding and lightning.
None of these currently require significant investments.
Risks concerning one or a limited number of sites are not
necessarily material for the Group as a whole. As climate
change is expected to exacerbate natural hazards, the
focus on understanding both current and future vulnera-
bilities of the sites, and the investments needed to reduce
them, will increase during the next years.
Business as usual scenario
Changing climate (RCP 8.5)*
• “Business as usual” scenario where the world
has failed to make significant changes and
GHG emissions continue to increase at the
current rate.
• Global temperature increase 3–5 °C.
• No effective policies in place and unsuccessful
global cooperation.
• Energy sources are only partly renewable,
there is high energy intensity.
• Significantly increased climate risks, business
operations are interrupted by extreme weather
events more often.
• Limited changes in the behavior and demand
from customers and investors.
Climate and environment, continued
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 37
the yeAr in review – sustAinAbility report
ENERGY AND EMISSIONS
Atlas Copco Group is committed to continuously improving our
environmental performance and believes in conducting business in
a manner that preserves the planet for future generations. We
improve the energy efficiency of our products and in our opera-
tions and have adopted science-based targets for the reduction of
greenhouse gas emissions, throughout our whole value chain.
The Group’s SHEQ policy complements our Code of Conduct and
is the overall steering document for the environmental area. It
states that we implement a lifecycle perspective in product devel-
opment, focused on a responsible use of resources, and that we
are committed to conduct our operations in such a way that we
avoid any environmental harm and protect biodiversity.
Environmental management systems
To minimize the Group’s environmental impact and to secure that
the precautionary approach is applied, our ambition is to imple-
ment environmental management systems (EMS) in all operations.
All production units with more than 20 employees, and customer
centers and rental companies with more than 70 employees,
should be certified according to ISO 14001. Acquired product com-
panies are normally certified within a two-year period. See page 34.
Science-based targets
In 2021, we raised our ambitions by committing to reducing the
greenhouse gas emissions throughout our value chain in line with
the goals of the Paris Agreement. For the Group’s own operations
(scope 1 and 2), this means that we aim to reduce emissions in line
with keeping the global temperature rise below 1.5 degrees. We
will also reduce the indirect emissions from our value chain
(scope 3), including the emissions that occur when our products
are in use, in line with keeping the temperature rise well below 2
degrees. Our targets up to year 2030 have been validated by the
Science Based Targets initiative and were implemented in 2022.
The work to identify additional opportunities for reducing emis-
sions continues and we acknowledge the need to further develop
our roadmaps and targets beyond year 2030.
Operational emissions, scope 1 and 2
In our efforts to reduce the emissions from our own operations, we
focus on energy-saving measures and increasing the use of renew-
able energy. Examples of efforts are using biofuels in product test-
ing, transitioning to renewable electricity in our facilities and install-
ing solar panels. Addressing emissions from company vehicles
enables further reductions. Our Airtech division has focused on
reducing energy consumption by automatically switching off filtra-
tion installations to optimize energy used during stand-by mode.
There is potential for further reductions and to apply the same
measures in other factories, thereby saving even more energy and
further contribute to decreasing emissions from scope 2.
In 2023, the CO2 emissions from our own operations were 38%
lower than in the baseline year, 2019. An increased share of renew-
able electricity was the main driver and some larger facilities
switched to renewable energy during the year. In 2023, the share
of renewable energy used in the Group was 63.6%. However,
in some markets, the availability of renewable energy poses a
challenge to our ability to increase this share further.
Energy in own operations
1) 2)
2023 2022
Direct energy use in GWh
3)
153 159
Indirect energy use in GWh
4)
378 359
Total energy use in GWh 531 518
Total energy use in MWh/COS
5)
5.9 7.0
Renewable energy, % of total energy use 63.6 58.0
1)
New and extended scope from 2022, including all operations.
2)
Energy use excludes fuel and energy for company vehicles. The Group does not
report cooling or steam separately.
3)
The calculation of direct energy, i.e. energy generated by the company for its own
production or operation, comprises all energy sources used on the sites, including
diesel, oil, biofuel, gasoline, solar, geothermal, propane and natural gas.
4)
Indirect energy, i.e. energy purchased externally by the company, includes
electricity (97%) and district heating (3%) used at the sites.
5)
See page 61 for the definition of Cost of goods sold (COS).
Internal carbon pricing
A guideline on how to include carbon pricing in capital investment
(Capex) decisions was introduced in 2021 to include climate impact
as a relevant factor in such decision-making.
Climate and environment, continued
Key performance indicators Target 2023 2022 2021
Reduction in CO2e
1)
emissions (tonnes) from scopes 1 and 2, compared to the baseline 2019 –46% by 2030
2)
–38% –35% –21%
Reduction in CO2e
1)
emissions (tonnes) from scope 3, compared to the baseline 2019 –28% by 2030
3)
+28% +19% +3%
Projects for new or redesigned products with goals for reduced carbon impact 100% 95% 97% 98%
1)
CO2e means carbon dioxide equivalent.
2)
In line with the 1.5 degree warming trajectory.
3)
In line with the 2.0 degree warming trajectory.
Atlas Copco Group is committed
to continuously improving our
environmental performance and
believes in conducting business in
a manner that preserves the planet
for future generations.
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 38
the yeAr in review – sustAinAbility report
Emissions in our value chain, scope 3
More than 90% of the CO2 emissions from our value chain are
generated when the customers use our products. Our main
focus in order to reduce scope 3 emissions is to increase
products’ energy efficiency and continue the electrification of
the small share of products that are not yet electrified. All
projects for new or redesigned products must have targets
for reduced carbon impact. In 2023, 95% of the projects had
set such targets. Logistics planning, switching to low carbon
transport modes and collaborating with transport partners
are other means to reducing emissions.
In 2023, the absolute emissions in scope 3 were 28%
higher than in the baseline year. The main reason for this
is increased sales, but the customers’ access to renewable
electricity continues to be a major challenge to our ability to
reach our scope 3 emissions reduction target.
Main levers for reaching scope 3 targets
Considering the different characteristics of our products,
the business areas’ plans and efforts to reduce products’
climate-impact differ. However, they all have in common that
the development and availability of renewable energy in cus-
tomers’ markets will be critical to their ability to achieve the
Group’s targets. See the business areas’ main levers for
reaching the targets below:
• Compressor Technique business area: Focus on continu-
ously improving product efficiency, targeting an increased
sales mix ratio of the most efficient products and optimiz-
ing the compressor rooms by more intelligent central
controls and variable speed combinations.
• Vacuum Technique business area: Focus on improving
product performance, integrating smart technology to
optimize the energy required, and by leveraging our ser-
vice teams to deploy product upgrades, which will extend
product lifecycles.
Climate and environment, continued
Mechanical Vapor Recompression (MVR) machines recover the high amount of available
energy within waste vapor and boost this to a higher pressure for further process use. MVR
is a good example of the electrification of industrial energy demand. Atlas Copco has seen a
strong increase in demand for this application which enables its customers to improve their
resource efficiency and productivity.
At a petrochemical process plant in The Netherlands, a customer uses MVR to upgrade
low-pressure steam, which would otherwise be disposed of into cooling water, thereby
rejecting the available energy content. The low-pressure steam is a byproduct during the
production of plastic material. This plant also needs medium-pressure steam for other
applications, and Atlas Copco’s new two-stage MVR compressor is now allowing the cus-
tomer to reuse the low-pressure waste steam as an efficient energy source for the supply
of medium-pressure steam back into their process.
Medium-pressure steam for the plant was traditionally produced in separate steam
boilers, running on natural gas. By installing this MVR compressor, the plant signifi-
cantly reduces the amount of natural gas used for steam production.
The project shows how this plant has success fully found a more resource-
efficient energy supply from electricity instead of natural gas. The MVR com-
pressor is cutting operational expenses by reducing the plant’s annual natural
gas consumption by 100 000 MWh, as well as saving 17 600 metric tons of CO2e
per year. This is equal to about 4 000 gasoline-powered passenger vehicles driven
for a full year.
Transforming surplus steam into energy
metric tons of
CO2e emissions
per year
17 600
Savings of
The steel industry accounts for 7% of all global CO2 emissions. It is energy and water inten-
sive, and much of the liquid steel degassing process relies on high intensity, low efficiency
steam ejector systems as a part of blast furnace infrastructure. A rapid decarbonization of
the global steel industry, including switching from blast furnace to electric arc furnaces, is
therefore a key part of the transformation to a low carbon economy.
Leybold’s mechanical vacuum systems (MVS) for steel degassers replace traditional
gas-powered steam ejector pump systems with an electrified vacuum solution. We estimate
that, over a 25-year lifecycle of one typical 100-ton vacuum degassing solution in use in
Germany, it delivers approximately 170 000 metric tons of CO2e savings and avoids nearly
1.1 million m
3
water use, potentially reducing carbon tax, energy and water costs for the
customer. The CO2e emissions saved over a lifecycle correspond to the emissions of about
37 800 gasoline powered passenger vehicles driven for a year.
In addition, an MVS delivers high process efficiency and improves workplace safety by
removing steam and gas from the process.
Electrifying steel degassing
metric tons of CO2e
emissions
170 000
Savings of
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 39
the yeAr in review – sustAinAbility report
Climate and environment, continued
• Industrial Technique business area: Focus on developing
and providing electric alternatives for the pneumatic
product ranges, improving energy efficiency in the current
product range and optimizing use of the products by
customers.
• Power Technique business area: Focus on providing
electrified alternatives for each product including energy
storage systems, improving fuel efficiency of the internal
combustion engines, and stimulating customers’ use
of renewable diesel (hydrogenated vegetable oil, HVO)
by offering solutions to make HVO available on the con-
struction sites.
in
energy
savings
40%
Up to
compared with a
traditional pump
Atlas Copco’s E-Pump range of electric
surface self-priming dewatering pumps is
designed for many applications with access
to a power source, like sewage bypass,
the municipality sector and construction
projects.
The E-Pump range consists of different
electric models; the E PAS with a canopy and
the E PAC open set configuration models.
They successfully manage demanding flows
and large solids with lower total cost of
ownership compared to an equivalent
diesel pump.
The E-Pump range offers an electric, exhaust
emissions free, alternative to diesel- powered
surface dewatering pumps, enabling custom-
ers to operate in emission- restrictive areas
The E PAS model has an intelligent solution
that ensures that the pump’s priming system
only runs when necessary, reducing energy
Electric dewatering pump with intelligent features
consumption and noise under normal condi-
tions. The model also features Atlas Copco’s
variable speed drive solution, offering energy
savings of up to 40% with an extended pump
life.
The E PAS operating expense is up to 40%
lower, based on the difference between die-
sel and electricity costs on selected markets.
The maintenance costs of electric motors are
substantially lower than diesel engines’ and
time to service is less with patented hinge
doors for easy access to serviceable parts.
By replacing all diesel pumps typically
sold in a year, on the European market,
with pumps driven by renewable electricity,
4 400 metric tons of CO2e emissions can be
saved annually, which corresponds to the
emissions of nearly 1 000 gasoline-powered
passenger vehicles driven for a year.
The global assembly industry is continuing
its transformation becoming more efficient,
integrated, and focused on reducing the
environmental impact. CP86 is a battery-
powered cordless nutrunner, suitable for
applications in harsh environments within
industries such as mining, shipbuilding, rail
or oil & gas.
These industries require extremely robust
and reliable tools that can be used in any
condition. The CP86 nutrunner brings all
these qualities with the flexibility and connec-
tivity of a cordless solution, allowing our cus-
tomers to ensure quality and performance
anywhere. In addition, the product can be
connected to the CPLinQ platform where
Innovation brings energy efficiency to the field
12 000
Savings of
more than
metric tons of CO2e
emissions per year
our customers can optimize their setup and
process, decreasing errors and rework.
This Chicago Pneumatic product is en-
abling the transition to a low carbon industry
by offering customers an opportunity to
substitute a traditionally used pneumatic tool
with an electric alternative.
By doing that, the lifecycle carbon impact
per tool can be reduced by 96%, with savings
of more than 12 000 metric tons of CO2e
emissions per year. This estimation is based
on a sales forecast and the replacement of
pneumatic tools with electric tools in the
coming two years. The savings correspond to
around 2 700 gasoline-powered passenger
cars driven for one year in the US.
More than 90% of the CO2 emis-
sions from our value chain are
generated when the customers
use our products. Our main
focus in order to reduce scope 3
emissions is to increase prod-
ucts’ energy efficiency and con-
tinue the electrification of the
small share of products that
are not yet electrified.
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 40
the yeAr in review – sustAinAbility report
In 2021, we conducted a value-chain impact assessment, which formed the base-
line for our Science-Based targets. A common Group methodology was used with
2019 as the baseline year.
The direct climate impact from energy used by our entities (scope 1 and 2) was
initially calculated by using actual data from the reporting entities and estimating
the impact from remaining entities. Since 2022 all entities report their actual car-
bon dioxide equivalent emissions from energy used in companies, and vehicles’
use. The performance on scope 1 and 2 is monitored and reported at unit level and
aggregated to Group level.
To calculate the product-related value chain impact, as part of scope 3 emissions,
a Group-common tool has been developed – The Product Carbon Footprint tool
(PCF). The tool is used to assess the carbon impact during the product’s entire life-
cycle, from choice of materials to manufacturing, energy used during the product’s
use-phase, estimated service required, and recycling and disposal.
All business areas completed the calculations of product-related and non-
product related emissions according to the Greenhouse Gas protocol, and the
results were consolidated to Group-level. The scope 1, 2 and 3 CO2e emissions for
2019, 2020 and 2021 have been recalculated based on the results from the value
chain impact assessment.
Our ambition is that the reported data should be as realistic as possible and
reflect products’ actual emissions. However, due to the complexity of the area and
the number of assumptions and estimates underlying the calculations, we realize
that the data is associated with uncertainties. We will therefore work gradually to
develop and improve our processes and tools over time, to increase data accuracy
and minimize uncertainties.
As part of improving data accuracy and correctness we have introduced a GHG
restatement process implemented during 2023, see page 42.
Energy consumed in the use phase is calculated using the current CO2 intensity
of the relevant market over the products’ lifetime. No forecast of increased availabil-
ity and use of renewable energy sources is taken into consideration. This, most
likely, results in overestimated emissions.
Business area Calculation method
Compressor
Technique
Scope 3 emissions, including embodied carbon and emissions from the use of our sold
products are calculated by applying the PCF tool with country-specific emission factors
to a large set of reference products, selected by the application specialists. Real
operational data, ingested via our connected installed base is used to make the best
possible estimation of the lifetime use variation of the machines.
Vacuum
Technique
Scope 3 emissions from the product use-phase are calculated based on the PCF tool
methodology to products sold to global markets. Estimations are made for energy
consumption, load of products and product maintenance profile.
For embodied carbon the spend-based method has been used considering total spend
on all goods and service, categorizing each spend item based on type, and matching
them to the appropriate emission factors. The spend-based emission factor databases
of EXIOBASE and USIO were used. The spend-based method offers a high-level, yet
complete, estimate of the total emissions associated with the purchased goods and
services.
Industrial
Technique
Scope 3 emissions have been calculated by applying the PCF tool to a set of reference
products selected by the business area.
Power
Technique
Scope 3 emissions for the years 2019–2021 have been calculated manually based on a
set of reference products selected by the business area. In 2022, more granularity was
added to the manual calculations, based on sales and product carbon footprint data.
As of 2023, calculations of emissions from two of four divisions from 2022 and onwards
are automated, based on the PCF tool.
Value chain impact assessment
– calculation methods
Climate and environment, continued
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 41
the yeAr in review – sustAinAbility report
GHG emissions (restated values)
(CO2e) ‘000 tonnes 2023 2022
Retrospective
base year 2019
% change 2023
vs. 2022
% change vs.
base year
Milestones and
target years 2030
Scope 1 GHG emissions
Gross Scope 1 86 84 86 +2 0
Scope 2 GHG emissions
Gross location-based Scope 2 142 140 – +1 –
Gross market-based Scope 2 26 33 94 –21 –72
Scope 1 + 2 GHG emissions
Scope 1 + 2 (market based) 112 117 180 –4 –38 –46%
Scope 3 GHG emissions
Total Gross indirect (Scope 3) 250 528 233 197 195 236 +7 +28 –28%
Purchased goods and services (CO2e) ‘000 tonnes 3 764 4 250 3 276 –11 +15
Use of sold products (CO2e) ‘000 tonnes 244 618 226 902 190 381 +8 +28
Leased assets downstream (CO2e) ‘000 tonnes 1 668 1 541 1 086 +8 +54
Other Categories (CO2e) ‘000 tonnes 478 504 493 –5 –3
Total GHG emissions, (CO2e) ‘000 tonnes
Total GHG emissions (location based) 250 756 233 421 – +7 –
Total GHG emissions (market based) 250 640 233 314 195 416 +7 +28
GHG emissions* / revenue (MSEK)
(CO2e) tonnes 2023 2022
Retrospective
base year 2019
% change 2023
vs. 2022
% change vs.
base year
Milestones and
target years 2030
Scope 1+2 (market based) GHG emissions / revenue 0.65 0.79 1.61 –18 –60
Scope 3 GHG emissions (CO2e) tonnes / revenue 1 451 1 624 1 843 –11 –21
Total GHG emissions (market based) / revenue 1 452 1 625 1 844 –11 –21
Total GHG emissions (location based) / revenue 1 452 1 626 – –11 –
* Historic data has not been restated for acquisitions.
GHG emissions restatement specification
(CO2e) ‘000 tonnes 2022 Base Year 2019
Scope 1+2 GHG emissions
Initial reported Scope 1+2 108 162
Adjustment to Scope 1+2 9 18
Restated Scope 1+2 117 180
Scope 3 GHG emissions
Initial reported Scope 3 219 822 170 634
Adjustment to Scope 3 13 375 24 602
Restated Scope 3 233 197 195 236
Restatements
Atlas Copco Group has developed a guideline for restatements that applies
to our GHG reporting related to the company’s science-based targets and
the corresponding baseline. Base year emissions shall be retroactively recal-
culated to reflect changes in the company that would otherwise compromise
the consistency and relevance of the reported GHG emissions and targets.
The need for restatements is reviewed, by the divisions, on an annual basis.
The restatement guideline is based on the GHG protocol corporate stan-
dards. Factors that trigger restatements: 1) structural changes in the report-
ing organization that have a significant impact on the company’s base year
emissions, including: mergers, acquisitions, divestments, outsourcing and
insourcing of emitting activities affecting the Group emissions, 2) changes in
calculation methodology or improvements in the accuracy of emission fac-
tors or any other operational data that result in a significant impact on the
base year emissions data, 3) discovery of significant errors, or a number of
cumulative errors, that are collectively significant.
The reporting of greenhouse gas emissions is done in accordance with the
GHG Protocol (ghgprotocol.org). Country factors used for energy come from
the International Energy Agency. Scope 2 is presented both as market-based
and location-based according to the GHG Protocol. A market-based approach
has been applied unless otherwise stated. Factors from NTM (transportmea-
sures.org) are used for transport of goods when emission data is not provid-
ed by the transport company. Scope 1 includes direct energy in own opera-
tions and fuel used in company vehicles. Scope 2 includes indirect energy
from own operations and electricity from company vehicles. Scope 3 in-
cludes GHG emissions upstream and downstream in the value chain. Out of
scope emissions data for direct CO2 emissions from biologically sequestered
carbon (e.g. CO2 from burning biomass/biofuels) was 2 400 tonnes in 2023.
CO2e stands for carbon dioxide equivalents. Calculations according to GRI
Standard Guidelines, www.globalreporting.org.
Climate and environment, continued
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 42
the yeAr in review – sustAinAbility report
ENVIRONMENTAL MANAGEMENT
Resource use and circularity
Atlas Copco Group takes a lifecycle approach to innovation. Each
product is designed with its full impact in mind – from the carbon
impact of materials and transports used, to its energy consumption
and the end of the product’s life. Our target is that by 2024 we will
have a Group-common method for assessing the circularity of new
or redesigned products.
Through a strong service offering we ensure that our customers
get the most value out of each investment. Our service divisions
ensure the repair and reuse of products, extending their useful life
and minimizing waste. They also provide support on how to opti-
mally use the products, which enables energy-efficiency gains.
Many of the Group’s products are also designed so they can be
returned, refurbished and resold as used equipment. This contrib-
utes to increased circularity and such used equipment meet the
same high standards as when they were new in terms of perfor-
mance and energy efficiency. Many products also have a modular
design, which supports circularity, as it enables easy disassembly
so that parts can be replaced. This contributes to prolonging the
life of the tool and reduced waste. Some of the Group’s units also
collect contaminated products from customers, which otherwise
would be disposed of as hazardous waste, and return them to full
operation.
Waste management
Reducing waste is important to decrease the total environmental
impact from our production and increase circularity. Most of our
waste is constituted by scrap metal and the vast majority is reused
or recycled. This share has been consistently high for many years.
Our target is that by 2030, we shall reuse, recycle or recover 100%
of our waste. This target is closely related to circularity, keeping
materials in a loop of re-use.
In general, all electrically powered Group products sold into the
EU fall under the EU Waste Electrical and Electronic Equipment
(WEEE) Directive. This includes compressors, vacuum pumps, hand-
held electric tools and monitoring control instruments. The Group
is responsible for, and arranges with customers, the correct dis-
posal of products that fall under the directive.
Water management
Atlas Copco Group’s overall water consumption is relatively low
due to our focus on assembly rather than other water-intensive
production processes. Nevertheless, we seek to decrease our use
of water and increase its reuse and circulation. Innovative product
design and improved processes also contribute to reducing our
customers’ water consumption.
Waste and water
1)
2023 2022
Total waste in ’000 kg 57 598 54 855
Waste (in kg)/COS
2)
641 739
Reused, recycled or recovered waste, % 91 92
Water consumption in ’000 m
3
671 624
Water consumption (m
3
)/COS
2)
7.5 8.4
1)
New and extended scope from 2022, including all operations.
2)
See page 61 for the definition of Cost of goods sold (COS).
Climate and environment, continued
Key performance indicators Target 2023 2022 2021 Comment
Significant direct suppliers with an approved
Environmental Management System
1)
Continuous increase 31% 31% 31%
Water consumption (m
3
)/in relation to cost of sales
2)
Continuous decrease 7.5 8.4 –
Reused, recycled or recovered waste from internal
operations
2)
100% by 2030 91% 92% –
A Group common methodology for assessing the
circularity of new or redesigned products In place by 2024 – – –
Implementation of methodology
to begin in 2024.
1)
An approved EMS is defined as ISO 14001, or fulfilled EMAS (EU Eco-Management and Audit Scheme) requirements. The significant
supplier needs to be third-party certified for ISO 14001 or registered in accordance with EMAS and hold a valid certificate.
The KPI includes significant direct suppliers to production and distributions units.
2)
New and extended scope from 2022, including all entities.
Towards sustainable
packaging
In our Power Tools Distribution center in Belgium, a shift towards
packaging materials with lower environmental impact is underway. The
ambition is to optimize packaging to reduce the amount of material
needed, and to move away from plastic, by replacing the plastic filling
bags with recycled paper. Where plastic is still needed, the aim is to use
foils and straps made of more recycled materials. Another focus is to
maximize the re-use of inbound packaging in our outbound shipments.
Small wooden pallets are also replaced by carton pallets, thereby reduc-
ing transport weight and simplifying the customers’ recycling.
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 43
the yeAr in review – sustAinAbility report
Biodiversity and ecosystems
The severity of the ongoing decline in nature and biodiversity
should not be underestimated and as a global company we have a
responsibility to understand and limit potential negative impact.
Although we have not yet deemed biodiversity to be a material
sustainability issue for us, it is on our agenda. Our SHEQ policy was
updated in 2022 to include a commitment to preserve biodiversity.
In 2023, we established an internal biodiversity network with repre-
sentatives from Group and all four business areas. The purpose is
to build internal competence, monitor the development within the
area and guide the organization in biodiversity-related issues going
forward.
During 2023, we also conducted an initial analysis to identify if
any of our own sites, or those of our significant suppliers, are
located in or near biodiversity sensitive areas. In terms of impact,
our current assessment is that we mainly have an indirect impact
through our supply chain and our emissions of greenhouse gases.
As climate change is a key driver of biodiversity loss, we believe
that this impact is currently addressed through our science-based
targets. The assessment to better understand impact and risks will
continue in 2024.
Environmental compliance
Atlas Copco Group follows applicable environmental laws in all
countries where the Group operates. Incidents or fines are
reported for non-compliance with environmental legislation, as well
as incidents involving chemical, oil or fuel spillages. In 2023, there
were no (1) accident resulting in adverse environmental effects.
The Group’s total clean-up costs relating to adverse environmental
effects amounted to KSEK 0 (379). Monetary sanctions for
non-compliance in the Group amounted to KSEK 0 (171).
Two Swedish operations, involving machining and assembly of
components, require permits based on Swedish environmental
regulations. The permits relate to areas such as use of cutting fluids,
process oils and hydraulic oils, emissions to water and air, and
noise pollution. One of the permits were under revision in 2023.
Environmental impact in the supply chain
We recognize the importance of managing environmental risks
throughout the value chain. By committing to the Group’s business
partner criteria, our suppliers assume responsibility for minimizing
the environmental impact of their products and services during
manufacturing, distribution, and usage, as well as after disposal.
Screening and audits are part of the Group’s supplier due diligence.
We work with tier-one suppliers using our business partner crite-
ria and, if needed, develop action plans together with suppliers to
improve their environmental management. We also measure the
percentage of significant direct suppliers to production and distri-
bution units that have implemented an approved environmental
management system (EMS). Our target is that this share should
increase year-by-year. In 2023, 31% of the Group’s suppliers met
this requirement.
Substances of concern
Atlas Copco Group maintains lists of substances which are either
prohibited or must be declared due to their potential negative
impact on health or the environment. Prohibited substances are
not allowed in the Group’s products or processes. Items containing
declarable substances are avoided or replaced whenever possible.
Climate and environment, continued
Via a dedicated communication platform the Group’s suppliers
can be swiftly informed about upcoming legislative changes.
A team of experts follow up with our suppliers to ensure that they
understand and acknowledge the importance of adhering to
the Group’s policy.
The Atlas Copco Group Prohibited and Declarable list is under
continuous revision according to applicable legislations. This
includes REACH, RoHS, U.S. State of California Safe Drinking Water
and Toxic Enforcement Act of 1986 (Proposition 65) and Japanese
Chemical Substance Control Law (CSCL). The lists on prohibited
and declarable substances are also published on the Group’s
website www.atlascopcogroup.com.
We recognize the importance of
managing environmental risks
throughout the value chain.
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Climate and environment
EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 44
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
• EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
EU Taxonomy regulation disclosures
The European Union (EU) taxonomy aims to provide guidance and over time a comprehensive classification system
of environmentally sustainable economic activities that companies can perform. We have assessed which of our
business activities that are covered by the EU taxonomy and how they correspond to reporting requirements.
ucts and solutions include e.g. on-site industrial gas generators,
energy recovery modules, air blowers, boosters, and dryers as well
as optimizing service solutions such as installations for optimal air
compression and distribution.
Within the Vacuum Technique business area, products are spe-
cifically developed to enable the manufacture of low carbon tech-
nology and products across several market sectors. Technology
such as abatement eliminates toxic emissions arising from complex
manufacturing processes and is deemed eligible when demon-
strating market leading energy efficiency. Also included as eligible
is core vacuum pump technology that can accelerate energy effi-
ciency through its high level of vacuum performance.
Within the Industrial Technique business area, a majority of
products and solutions are developed with an intention to reduce
customers’ energy consumption through energy efficiency and are
therefore deemed eligible. This includes all products and solutions
that support the transition from pneumatic to electric power, as
well as use optimization of both types of products, pneumatic and
electric, making them as energy efficient as possible.
Within the Power Technique business area, all electric and
battery-driven products are deemed eligible, supporting the shift
from fossil fuel to electric or battery power. This includes the elec-
tric rental fleet. Also diesel-driven products are considered eligible
because when infrastructure for electric solutions is lacking, diesel-
driven machinery is required in the market for which Atlas Copco
Group offers energy efficient solutions. Still, the aim is to replace
diesel-driven products with electric alternatives whenever practi-
cally possible. Industrial pumps, which recently have been added to
the product portfolio, are considered eligible if electric with high
efficiency. As a whole, a majority of the business area’s products
and solutions are deemed eligible.
The taxonomy eligible revenues include both products and
services. Both Compressor Technique and Power Technique have
included revenues related to refurbishment.
Technical screening criteria assessment
The CCM 3.6 section requires that emission savings are calculated
using a taxonomy compliant method and that these calculations
are verified by a third party. In 2022, our product carbon footprint
(PCF) tool was externally certified against ISO 14067:2018 and thus
qualifies to be used for our taxonomy reporting.
fied to report against both delegated acts is Industrial Technique.
To avoid double counting we only report against the Climate Dele-
gated Act on all three KPIs.
Revenue KPI
Based on the taxonomy’s Climate Act, Atlas Copco Group is eligible
for climate change mitigation (CCM) under section CCM 3.6 with
the activity description “Manufacture of technologies aimed at sub-
stantial greenhouse gas emission reductions in other sectors of the
economy”.
Atlas Copco Group defines eligibility in accordance with CCM 3.6
as technologies which aim to enable substantial energy savings
and/or other means to avoid, reduce, remove, or store green-
house gas emissions compared to alternative technologies com-
monly used on the market. This includes products and services
that: 1) prevent the venting of environmentally hazardous gases
directly into the atmosphere, or 2) enable substantial energy sav-
ings compared to available technologies commonly used on the
market by either use optimization, in and of themselves, by
enabling the shift to electric/battery power, or by introducing new
solutions on the market. As of 2022, eligible technologies include:
• Energy efficient products and services which now or over time
are expected to meet the alignment criteria.
• Products and services which are aimed at being phased out and
replaced by aligned products.
Eligible technologies
The mapping of eligible technologies is an ongoing process and
may result in revisions in future reports as reporting practice devel-
ops. For the 2023 reporting the following have been included:
Within the Compressor Technique business area, the majority
of products and solutions are deemed eligible as they are devel-
oped with an aim to lower customers’ energy consumption. This is
predominately done through energy efficient variable speed drive
compressors, but also fixed speed compressors are manufactured
with the aim of offering energy efficiencies. Additional eligible prod-
Atlas Copco Group develops and offers a wide range of technology
and services for different end markets and applications. We are
central to many parts of modern society and our customers are
often at the forefront of transforming their industries and driving
development forward. As a Group we always strive to provide the
most energy efficient products for each specific application to sup-
port our customers in minimizing their energy consumption and
reducing their climate impact.
The EU taxonomy consists of six environmental objectives and
two delegated acts. The Climate Delegated Act addresses two of
these objectives (climate change mitigation and climate change
adaptation) and the Environmental Delegated Act addresses the
remaining four objectives (water, transition to a circular economy,
pollution prevention, and biodiversity).
Companies covered by the taxonomy (eligible) are considered to
have one impact on the climate or the environment. To also be con-
sidered environmentally sustainable, taxonomy aligned, the com-
pany also needs to validate its compliance against three sets of cri-
teria: the technical screening criteria, the Do No Significant Harm
criteria, and the Minimum Safeguards.
In December 2022 the European Securities and Markets Author-
ity (ESMA) indicated a restrictive compliance interpretation when it
comes to the Minimum Safeguards, the social aspects of doing
business, signaling that referencing existing company policies was
not sufficient for compliance. This resulted in the choice to con-
tinue the Group’s conservative approach from 2021 and we
reported 0% alignment on all three KPIs.
We have continuously taken steps to strengthen our due dili-
gence processes relating to human rights (see the Minimum Safe-
guards chapter below). Until we can confirm that the implemented
activities are sufficient to meet the Minimum Safeguards, we con-
tinue our conservative approach and report 0% alignment on all
three KPIs also for 2023. Owing to this, no detailed review of the
other criteria is shared at this stage.
For the financial year 2023, reporting on alignment is only required
for the Climate Delegated Act. The only business area that is quali-
Atlas Copco Group 2023 45
The yeAr In reVIeW – susTAInAbIlITy rePorT
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
• EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Result
Revenue eligibility is 65% (60). The increase is mainly due to inclusion
of acquired technologies within the Power Technique business area.
CapEx KPI
We utilize all types of taxonomy listed capital expenditure for the
CapEx numerator as listed below:
• “CapEx related to assets or processes that are associated with
taxonomy-aligned activities”: Used for investments in factories
that enable production of products relating to taxonomy section
CCM 3.6.
• “A CapEx Plan to increase the proportion of taxonomy-aligned
products”: Used for the reporting of R&D CapEx relating to
taxonomy section CCM 3.6.
• “The purchase of output of taxonomy-aligned products”: Used
for taxonomy product additions into our hire fleet relating to
taxonomy section CCM 3.6.
• “Individual measures” to lower Atlas Copco Group’s own green-
house gas emissions: Used for installations of energy efficiency
equipment, installations of charging stations for electric vehicles,
installations controlling building energy performance, installa-
tions of renewable energy technologies, and investments related
to the company vehicle fleet (relating to taxonomy sections CCM
6.5, 7.3, 7.4, 7.5, and 7.6).
The CapEx denominator used for the taxonomy KPI calculation con-
sists of additions to tangible and intangible assets (including right
of use assets) during the financial year, considered before depreci-
ation, amortization, and any re-measurements, including those
resulting from revaluations and impairments, and excluding fair
value changes. The denominator also includes additions to tangible
and intangible assets resulting from business combinations.
No significant climate change adaptation investments have been
made during the year.
Result
CapEx eligibility is 17% (7). The increase is mainly due to data
quality improvements. It should be noted that the majority of R&D
expenditure is reported as OpEx within Atlas Copco Group and
that the CapEx denominator includes a relatively low proportion of
taxonomy relevant expenditure.
As we report 0% alignment we also report 0 MSEK in regards to
the CapEx plan to expand our proportion of taxonomy-aligned
products within R&D (both for this reporting period and the full
time period of the plan).
OpEx KPI
The OpEx numerator only includes expenditure that is material
to the company business model, i.e. in R&D and our own hire fleet
(relating to taxonomy section CCM 3.6). The denominator however
includes expenditures for R&D and hire fleet as well as mainte-
nance costs for buildings, equipment, and own vehicle fleet.
Result
OpEx eligibility is 29% (22). The increase is mainly due to data
quality improvements.
Doing no significant harm
Taxonomy alignment requires substantial contribution to at least
one of the taxonomy environmental objectives while doing no sig-
nificant harm to any of the other objectives. The taxonomy identi-
fies specific criteria as to what constitutes doing harm and what
type of assessment a company should perform to evaluate such
potential harm.
In 2022, we assessed our operations against the taxonomy’s
appendixes A, B, C, and D (addressing climate change adaptation,
water, pollution prevention, and biodiversity) as well as the require-
ments for not harming the transition to a circular economy. The
conclusion was that no significant harm is done although it is
deemed difficult to assess compliance with the pollution prevention
criteria, especially after their revision in 2023. We thus welcome
EU’s promised publication of the horizontal principles on essential
use of chemicals as this is expected to result in additional changes
and further clarification.
Improvements may be implemented to certain existing company
policies and procedures and steps to adapt to the taxonomy
reporting demands have been taken.
Meeting the Minimum Safeguards
The EU taxonomy references adherence to the OECD Guidelines
for Multinational Enterprises and the UN Guiding Principles on
Business and Human Rights, including the principles and rights set
out in the eight fundamental conventions identified in the Declara-
tion of the International Labor Organization on Fundamental Prin-
ciples and Rights at work and the International Bill of Human
Rights.
As stated in last year’s annual report, company policies align with
the criteria as we endorse all referenced frameworks. During 2023
we have further developed our Enterprise Risk Management (ERM)
process and provided insights on topics such as human rights to
our divisions. We have also revised our Human Rights Statement,
assessed our risk country identification process, as well as
on-boarded an external system to strengthen the assessment of
business partners’ environmental, social, and governance pro-
cesses.
The proposed EU due diligence directive references the same
international frameworks as the taxonomy, and we have therefore
chosen to see its requirements as guiding also in the taxonomy
reporting in wait for best practice to develop.
Concluding comments
A similar revenue eligibility is reported in 2023 compared to the
previous year. Focus has been on strengthening processes relating
to the Minimum Safeguards and biodiversity in particular. In princi-
ple our company policies and procedures correspond with taxon-
omy requirements, however we have chosen to continue our con-
servative compliance interpretation of the Minimum Safeguards
and therefore report 0% alignment on all three KPIs.
We monitor the developments around the taxonomy closely and
as reporting practice and guidelines develop, we may reevaluate
our current approach, especially as the EU Commission’s work pro-
gram for 2024 indicates upcoming changes in the taxonomy
reporting requirements.
Clarification in how to perform alignment assessment of so
called enabling activities is also likely to impact our taxonomy
reporting as many of our products and solutions contribute to a
more low-carbon society and are essential in several manufactur-
ing processes included in the taxonomy.
EU Taxonomy regulation disclosures, continued
Atlas Copco Group 2023 46
The yeAr In reVIeW – susTAInAbIlITy rePorT
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
• EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
EU Taxonomy regulation disclosures, continued
revenue KPI
Financial year N 2023 Substantial Contribution Criteria
DNSH criteria
(Does Not Significantly Harm)
Economic activities
Code
Revenue (MSEK)
Proportion of Revenue, year N (%)
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
Revenue, year N-1
Cate gory
enab ling
activity
Category
transitional
activity
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Revenue from environmentally sustainable activities (Taxonomy-aligned) (A.1) 0.0 0% 100% 0% 0% 0% 0% 0% 0%
Of which Enabling 0.0 0% N/EL N/EL N/EL N/EL N/EL N/EL 0%
Of which Transitional 0.0 0% N/EL 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of other low-carbon technologies CCM 3.6 112 821.1 65.34% N N/EL N/EL N/EL N/EL N/EL 60.28%
Revenue from Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 112 821.1 65.34% 100% 0% 0% 0% 0% 0% 60.28%
A. Revenue from Taxonomy-eligible activities (A.1 + A.2) 112 821.1 65.34% 60.28%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Revenue from Taxonomy-non-eligible activities 59 842.4 34.66%
TOTAL 172 663.5 100%
y = yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective
n = no, taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective
n/el = not eligible, taxonomy non-eligible activity for the relevant environmental objective
Atlas Copco Group 2023 47
The yeAr In reVIeW – susTAInAbIlITy rePorT
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
• EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Capex KPI
Financial year N 2023 Substantial Contribution Criteria
DNSH criteria
(Does Not Significantly Harm)
Economic activities
Code
CapEx (MSEK)
Proportion of CapEx, year N (%)
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx, year N-1
Cate gory
enab ling
activity
Category
transitional
activity
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0.0 0% 100% 0% 0% 0% 0% 0% 0%
Of which Enabling 0.0 0% N/EL N/EL N/EL N/EL N/EL N/EL 0%
Of which Transitional 0.0 0% N/EL 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of other low-carbon technologies CCM 3.6 1 599.6 12.21% N N/EL N/EL N/EL N/EL N/EL 4.26%
Transport of motorbikes, passenger cars and light commercial vehicles CCM 6.5 580.1 4.43% N N/EL N/EL N/EL N/EL N/EL 2.87%
Installation of energy efficiency equipment CCM 7.3 12.6 0.10% N N/EL N/EL N/EL N/EL N/EL 0.10%
Installation of charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) CCM 7.4 1.6 0.01% N N/EL N/EL N/EL N/EL N/EL 0.02%
Installation of instruments and devices for measuring, regulation and
controlling energy performance of buildings CCM 7.5 0.7 0.01% N N/EL N/EL N/EL N/EL N/EL 0.00%
Installation of renewable energy technologies CCM 7.6 8.5 0.06% N N/EL N/EL N/EL N/EL N/EL 0.08%
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 2 203.1 16.82% 100% 0% 0% 0% 0% 0% 7.34%
A. CapEx of Taxonomy-eligible activities (A.1 + A.2) 2 203.1 16.82% 7.34%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 10 897.6 83.18%
TOTAL 13 100.8 100%
y = yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective
n = no, taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective
n/el = not eligible, taxonomy non-eligible activity for the relevant environmental objective
EU Taxonomy regulation disclosures, continued
Atlas Copco Group 2023 48
The yeAr In reVIeW – susTAInAbIlITy rePorT
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
• EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
opex KPI
Financial year N 2023 Substantial Contribution Criteria
DNSH criteria
(Does Not Significantly Harm)
Economic activities
Code
OpEx (MSEK)
Proportion of OpEx, year N (%)
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change mitigation
Climate change adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx, year N-1
Cate gory
enab ling
activity
Category
transitional
activity
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0.0 0% 100% 0% 0% 0% 0% 0% 0%
Of which Enabling 0.0 0% N/EL N/EL N/EL N/EL N/EL N/EL 0%
Of which Transitional 0.0 0% N/EL 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of other low-carbon technologies CCM 3.6 2 060.9 28.96% N N/EL N/EL N/EL N/EL N/EL 21.79%
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 2 060.9 28.96% 100% 0% 0% 0% 0% 0% 21.79%
A. OpEx of Taxonomy-eligible activities (A.1 + A.2) 2 060.9 28.96% 21.79%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 5 055.9 71.04%
TOTAL 7 116.7 100%
y = yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective
n = no, taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective
n/el = not eligible, taxonomy non-eligible activity for the relevant environmental objective
EU Taxonomy regulation disclosures, continued
Atlas Copco Group 2023 49
The yeAr In reVIeW – susTAInAbIlITy rePorT
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
• EU Taxonomy regulation
disclosure
Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Nuclear energy related activities
1. The undertaking carries out, funds or has exposures to
research, development, demonstration and deployment of
innovative electricity generation facilities that produce
energy from nuclear processes with minimal waste from
the fuel cycle.
NO
2. The undertaking carries out, funds or has exposures to
construction and safe operation of new nuclear installations
to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using
best available technologies.
NO
3. The undertaking carries out, funds or has exposures to safe
operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety
upgrades.
NO
Fossil gas related activities
4. The undertaking carries out, funds or has exposures to
construction or operation of electricity generation facilities
that produce electricity using fossil gaseous fuels.
NO
5. The undertaking carries out, funds or has exposures to
construction, refurbishment, and operation of combined
heat/cool and power generation facilities using fossil
gaseous fuels.
NO
6. The undertaking carries out, funds or has exposures to
construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil
gaseous fuels.
NO
Proportion of Revenue / Total Revenue
Aligned per objective Eligible per objective
CCM 0% 65%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
Proportion of CapEx / Total CapEx
Aligned per objective Eligible per objective
CCM 0% 17%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
Proportion of OpEx / Total OpEx
Aligned per objective Eligible per objective
CCM 0% 29%
CCA 0% 0%
WTR 0% 0%
CE 0% 0%
PPC 0% 0%
BIO 0% 0%
EU Taxonomy regulation disclosures, continued
CCM – Climate Change Mitigation
CCA – Climate Change Adaptation
WTR – Water and Marine Resources
CE – Circular Economy
PPC – Pollution Prevention and Control
BIO – Biodiversity and ecosystems
As a manufacturer of power-driven hand tools, the Industrial
Technique business area is qualified to report against both
the Climate Delegated Act and the Environmental Delegated
Act. Our initial assessment has resulted in a non-significant
contribution against the latter seen from the Group perspec-
tive, applicable only for the Revenue KPI. For this reason, we
report CE 0% eligibility. We monitor the developments
around the taxonomy closely and as reporting practice and
guidelines develop, we may reevaluate our current approach.
Atlas Copco Group 2023 50
The yeAr In reVIeW – susTAInAbIlITy rePorT
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social responsibility
As a global industrial Group, our value chain connects us with a large number of individuals. This brings a significant
responsibility to make sure our business has a positive impact, and to promote the rights and interests of all our stakeholders.
Insight: Improved employee
engagement
The overall results of the 2023 engagement survey were above the glob-
al benchmark. They also show that our employees are more engaged
now than two years ago – 16 out of the 29 scores showed improvement
over 2021, including key focus areas of leadership, collaboration, and
safety/wellbeing. In 2023, we introduced a Diversity & Inclusion index,
comprised of six key indicators. For example, we started to measure our
manager’s commitment to diversity and inclusion and if we have a work
climate that values diverse perspectives.
The high level of engagement was reflected in the 40 000 comments,
with 30% of employees leaving at least one comment. The response rate
was 90%, which is also above the global benchmark. The survey results
are followed up in workshops led by our managers, where concrete
actions are shaped to further strengthen employee engagement and our
culture. See the results in the table below.
Diversity and inclusion
The Atlas Copco Group strongly believes that diversity and inclu-
sion promotes innovation, strengthens employee engagement and
leads to better decision making. With about 53 000 employees at
year end, from around 130 nationalities worldwide, we are commit-
ted to providing an inclusive work environment where everyone is
EMPLOYEES
To secure the Atlas Copco Group’s strategic direction, we rely on
competent people who are passionate about their jobs and com-
mitted to delivering customer value. Our focus lies on attracting,
developing and retaining diverse people with the right mindset and
skills and on empowering them to grow with freedom and account-
ability. To achieve this, we need to provide an inclusive environment
where the Group’s employees feel a sense of purpose and belong-
ing, are motivated to contribute and given the opportunity to
develop and reach their full potential. We believe that there is
always a better way of doing things and advocate freedom with
accountability.
To follow our development within this area, the Group has estab-
lished performance indicators and targets for employee satisfac-
tion and engagement, and diversity, see the table below.
Employee engagement
Building and maintaining relationships with the Group’s stakehold-
ers, based on integrity, fairness and respect, is a vital part of our
culture. It is also central to understanding our people and what
drives them, and helps fostering employees’ trust and motivation.
A global employee survey is carried out every two years, which
brings important insights in the following areas: employee engage-
ment, Group culture, safety and leadership, and diversity and inclu-
sion. The target is that the results should be above the global
benchmark and a continuous increase.
treated with respect, feels seen and heard, and is able to realize
their full professional potential.
Our Diversity and Inclusion guideline covers all employees,
including additional workforce, and states that we strive for diver-
sity and inclusion in every aspect of our operations. We provide
equal opportunity to all applicants and employees and do not dis-
criminate based on ethnicity, religion, gender, age, nationality,
disability, sexual orientation or political opinion. Group companies
establish local diversity guidelines that are aligned with the
Group’s policy, local laws and regulations, and local conditions.
Anti-harassment and non-discrimination issues are addressed in
the Group’s mandatory ethics training.
The Atlas Copco Group’s Diversity and Inclusion Council is
chaired by the Group’s President and CEO, and includes represen-
tatives from all business areas, as well as from the functions corpo-
rate communications, human resources, and accounting and con-
trolling. The council meets regularly to follow up on action plans
and results in the operations. The work is mainly driven by business
area task forces and ambassadors in each operational entity.
In the Group’s employee survey Insight in 2023 we introduced a
Diversity & Inclusion index, and started measuring and reporting
on six key inclusion indicators.
Achieving better gender balance is a key priority when it comes
to improving employee diversity. We address this through the
Key performance indicators Target 2023 2022 2021 Comment
Employees feel a sense of belonging in the company
1)
Above benchmark (73) and
a continuous increase 77 – –
Was first measured through the
employee survey in 2023.
Employees agree there is opportunity to learn and grow
in the company
1)
Above benchmark (72) and
a continuous increase 75 – 73
Measured through the employee
survey every two years.
Employees agree there is a work culture of respect,
fairness and openness
1)
Above benchmark (76) and
a continuous increase 76 – 76
Measured through the employee
survey every two years.
Share of female employees, by year end 30% by 2030 22.0% 21.6% 20.9%
1)
Scores based on scale 0–100 where 0 is “strongly disagree” and 100 is “strongly agree”. The survey provider’s proprietary benchmark for global companies is based on anonymized
data from the survey provider’s customer base with tens of millions of respondents in more than 150 countries, together with input from industry panel studies to produce robust
and unbiased normative data.
Atlas Copco Group 2023 51
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
target of 30% women employees in the Group by 2030. In 2023,
progress was made towards a better gender balance with 22.0%
(21.6) women employees by year end.
Share of women at year end, % 2023 2022 2021
All employees 22.0 21.6 20.9
Managers 20.6 20.4 20.5
Group management 33.3 33.3 22.2
Board of Directors
1)
37.5 25.0 25.0
1)
Excluding employee representatives.
Training and development
The Atlas Copco Group’s success depends on our ability to attract
and develop people with a commitment to lifelong learning and a
growth mindset. We have a strong culture of encouraging our
employees to take accountability for their own development and
enable learning from each other through continuous feedback
and coaching. We also encourage and facilitate internal mobility
through the Group’s internal job market.
The Group has developed a talent framework based on a set of
competencies that have been identified as the most critical to the
Group’s success and that are relevant to all employees. The compe-
tencies are broken down into behaviors that drive employee per-
formance and emphasizes our belief that every employee has a
critical role in driving our success.
Personalized and interactive learning
Our learning management system provides personalized and inter-
active learning opportunities that enable upskilling and reskilling. It
provides access to an extensive library of learning content, person-
alized and packaged to address specific subjects, functions or roles.
Subject matter experts are also recognized to support the Group
with knowledge transfer, fostering collaboration and peer-to-peer
learning.
Developing future-proof leaders
Leadership development is also central to the Group’s people
philosophy. We define leadership as the ability to create lasting
results and strive to develop leaders who coach and develop teams
and individuals to reach their full potential. The Group’s process for
performance and development dialogues is designed to increase
the quality and frequency of feedback, holding leaders accountable
for growing people through ongoing coaching.
Our leadership portfolio offers personalized learning through a
set-up with different modules focusing on a specific skill. During the
year, new modules were launched focusing on change manage-
ment and leadership in times of uncertainty.
Training and development 2023 2022 2021
Yearly performance and development
discussion, % 81 79 82
Average training hours per employee 43.2 42.0 39.5
Average training hours, white-collar
employees 44.4 43.2 39.9
Average training hours, blue-collar
employees 40.7 39.4 38.6
Inclusive and data-driven
recruitment practices
The Atlas Copco Group seeks to proactively attract talent from the entire
pool of qualified candidates. Here, data-driven recruitment practices
using AI-driven sourcing tools provide insights and a more efficient hiring
process. During 2023, a pilot project was conducted in the US, UK, Ger-
many and Belgium. Recruiters have tested an AI-driven solution that sup-
ports inclusive language in job adverts and overall job ad performance.
The outcome so far has been positive, with an improvement in both the
number of applicants and women hires. The solution has now been
launched in the US and UK as key markets.
The Atlas Copco Group’s service business has traditionally been char-
acterized by a significant underrepresentation of women. Attracting
female colleagues has been a challenge for different reasons, one of
which may be unconscious bias and the assumption that women are
not suitable for the job of a technician.
However, the Compressor Technique Service division has challenged
this perception. Five years of dedicated work across the division has
resulted in a steady increase from only 2 female service technicians in
2018 to 126 in 2023.
Behind the positive development lies a changed mindset and an
increased awareness of why diversity matters and that it is a critical
competitive success factor in today’s business world. The technician’s
role itself has been adjusted to make it less physically demanding and
more safe for all genders. A number of other measures have also been
taken including training, employer branding campaigns, developing
gender neutral job adverts and building strong relations with technical
schools.
Well suited for the job
Social responsibility, continued
Atlas Copco Group 2023 52
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
OCCUPATIONAL HEALTH AND SAFETY
At Atlas Copco Group we are strongly committed to addressing
occupational health and safety risks and promoting a safe and
sound working environment for all our employees in all operations.
This is critical to their health, wellbeing and motivation, as well as to
the Group’s productivity and competitiveness.
A culture of awareness
Our employees face various types and levels of risk in their every-
day work life. Much of the work in our operations is performed in a
strictly controlled environment. Many procedures are automated
but manual procedures remain, which may imply health and safety
risks. Employees may also be exposed to risks outside of facilities
when travelling internally or to visit customers and business part-
ners, or while undertaking service and maintenance on equipment
at customers’ sites. Other risks may involve psychosocial aspects,
related to for example workloads or work-life balance.
We seek to reinforce a culture and behaviors that contribute to
the safety and wellbeing of our employees and contractors in the
workplace. We engage everyone in improving safety practices and
reducing health and safety risks. We also encourage the immediate
reporting of near-misses, incidents and risk observations. This is
critical to raising the awareness of risks and to the development of
effective preventative work.
Robust safety standards
The Group’s global Safety, Health, Environment and Quality policy
(SHEQ) requires robust safety and wellbeing standards in the work-
place. This includes risk assessments and safety procedures, train-
ing, establishing a healthy environment within and around the
workplace, appropriate follow-up procedures, and transparent
reporting. Each division sets targets and develops action plans to
increase awareness and improve behavior and processes. The
Group’s SHEQ council oversees the work and supports the organi-
zation in strengthening local competencies, including the develop-
ment of Group-common policies, guidelines and processes for local
implementation, sharing of best practices and lessons learned.
Occupational health and safety management system
All companies in the Group must have a verified Safety, Health,
Environment and Quality management system which is docu-
mented, implemented and maintained on an ongoing basis. Cus-
tomer centers and rental companies with more than 70 employees,
and product companies with more than 20 employees shall be
certified according to ISO 45001. The system involves regular risk
assessments and follow-up on conditions and safety-related pro-
cesses of both our own workplaces and those of contractors.
Targets and progress
Key performance indicators on safety and wellbeing are continu-
ously monitored by local management and followed up by Group
Management, and divisional and business area management, in
connection with the quarterly reporting of sustainability data.
Progress is also followed up in the employee engagement survey
every two years, where the target is that the share of employees
who agree that the Group takes a genuine interest in their wellbe-
ing should increase continuously. The 2023 employee survey con-
firms that this share has increased compared to 2021.
We also monitor our performance by using a safety pyramid,
where our target is that the pyramid should be balanced. This
means that we receive more reports of risk observations than near
misses, more near misses than minor injuries, and more or equal
reports of minor injuries relative to recordable injuries. When risk
observations and near misses are reported, this will raise aware-
ness of conditions and behaviors that can lead to actual incidents.
These insights form a stable starting point for well-directed preven-
tive work in the area. In 2023, the result was in line with this target,
see the illustration below.
Social responsibility, continued
Safety pyramid 2023 – Total workforce, number
Fatality (0)
High-
consequence
injury (4)
Other recordable injury (465)
Minor injury (1 479)
Near miss (6 911)
Risk observations (148 020)
Total
recordable
injuries
work-related fatality
injury where recovery to pre-injury
fitnesstakeslongerthansixmonths
Injuryresultinginabsencefromwork,restrictedwork,medicaltreatment,
lossofconsciousnessorsignificantinjurydiagnosedbyaphysician
Minorinjuryrequiringfirstaidtreatmentonly
Eventthatdidnotresultinaninjurybuthadthepotentialtodoso
Observationsofunsafeconditionsthatcouldcauseharm/injury
Key performance indicators Target 2023 2022 2021 Comment
A balanced safety pyramid Yes Yes Yes Yes
Employees agree that the company takes a genuine
interest in their wellbeing
1)
Continuous increase 74 – 73
Measured through the employee
survey every two years.
1)
Scores based on scale 0–100 where 0 is “strongly disagree” and 100 is “strongly agree”.
Atlas Copco Group 2023 53
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Injuries, total workforce,
and sick leave
1)
2023 2022 2021
Recordable injuries, number 469 403 387
Recordable injuries per million
working hours 4.5 4.2 4.5
High-consequence injuries, number 4 4 3
High-consequence injuries per million
working hours 0.04 0.04 0.03
Minor injuries, number 1 479 1 261 1 148
Minor injuries per million working
hours 14.1 13.2 13.4
Fatalities, number 0 0 0
Fatalities per million working hours 0 0 0
Sick leave due to diseases and recordable
injuries, Group employees, % 2.3 2.5 2.2
1)
Sick leave is measured among Group employees only. Injuries refer to total workforce.
The definitions of the severity of incidents and injuries are aligned with international
standards.
Total recordable
injuries, 2023
Per million
working
hours Number
Recordable injuries, total workforce 4.5 469
Recordable injuries, Group employees 4.4 429
Recordable injuries, additional workforce 6.1 40
Fatalities, total workforce 0 0
Fatalities, Group employees 0 0
Fatalities, additional workforce 0 0
High-consequence injuries, total workforce 0.04 4
High-consequence injuries, Group employees 0.04 4
High-consequence injuries, additional
workforce 0 0
Most prevalent risks
Over the last few years, the major hazards reported for high-
consequence injuries have been awareness-related, such as slips
and trips, lone working and manual handling of equipment. Among
the actions to mitigate hazards are awareness training and risk
assessments of working environments, inspections, mechanical
handling aids, and ensuring safe access to equipment.
Group-wide wellbeing
framework
The Group’s wellbeing framework helps leaders understand employees’
wellbeing needs and how to support them. It is made up of four connect-
ed areas; a sense of purpose, social connectedness, physical wellbeing,
and mental wellbeing. A complementing guide is available that includes
examples of initiatives on an individual, team and/or operation level, as
well as reference materials.
Additional information on employees and workforce
Freedom of association and collective bargaining
Atlas Copco Group views trade unions and employee representa-
tives as a valuable support for its employees, and bases relation-
ships with these parties on mutual respect and constructive dia-
logue. Labor practices and employee rights, such as collective bar-
gaining, are covered in the Code of Conduct. In 2023, 28% (29) of all
employees were covered by collective bargaining agreements.
Employees not covered by collective agreements are protected by
standards based on local and international benchmarks.
As a decentralized organization, the Group’s engagement and
dialogue with labor unions takes place at a local level. In case of
operational changes that may significantly affect employees or
result in giving notice, the Group follows local laws and regulations
as well as collective bargaining agreements. The need for transition
assistance programs is assessed at local level and the support pro-
vided through such programs are adapted to the situation at hand
and to local market conditions. The Group’s internal job market is
available to all employees and provides opportunities for internal
mobility.
In countries where no independent labor unions exist, measures
are taken to establish forums for employer/employee relations,
through environment and safety committees. Labor relations are
followed up regularly on the operational level and reviewed by
internal audit.
Significant suppliers’ compliance to our Code of Conduct, which
is based on international guidelines and frameworks such as the
UN Global Compact and the International Labour Organization
Declaration on Fundamental Principles and Rights at Work, is
audited regularly.
Social responsibility, continued
Workforce profile
The Atlas Copco Group is a significant employer on the global
market. As a customer-focused company, 48% (49) of all employees
work in marketing, sales or service. The Group strives to grow local
leaders and the geographical spread of employees and senior
managers is continuously developing.
Geographical spread of
employees at year end, %
2023 2022
North America 16 16
South America 4 4
Europe 44 45
Africa/Middle East 3 3
Asia/Oceania 33 32
Total 100 100
Geographical spread of nationality of senior
managers at year end, %
2023 2022
North America 11 11
South America 5 4
Europe 66 71
Africa/Middle East 3 3
Asia/Oceania 15 11
Total 100 100
Employees by professional category, %
2023 2022
Production 26 26
Marketing 8 8
Sales and support 13 14
Service 27 27
Administration 16 16
Research & development 10 9
Total 100 100
Atlas Copco Group 2023 54
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Additional workforce by region, at year end, %
2023 2022
North America 13 16
South America 2 1
Europe 44 47
Africa/Middle East 1 1
Asia/Oceania 40 35
Total 100 100
Additional workforce by professional category,
at year end, %
2023 2022
Production 41 52
Marketing 3 2
Service 14 15
Administration 19 14
Research & development 23 17
Total 100 100
The Group has managers on international assignments coming
from 44 countries and working in 47. In 2023, a total of 77% (77*)
of all senior managers were locally employed. 42 (46) nationalities
were represented among the 580 (557*) most senior managers
in the Group.
* The number of senior managers in 2022 has been restated due to a reporting error.
New employee hires and employee turnover
The total number and rate of external new employee hires in 2023
was 7 936 (8 524) which constitutes 15.5% (18.6) of the total aver-
age number of employees during the year. The percentage of
externally recruited female employees was 26% (27). The total
number of resignations was 3 158 (3 667), which constitutes 6.2%
(8.0) of the total average number of employees during the year.
Employees and turnover 2023 2022 2021
White-collar employees, % 68 69 69
Blue-collar employees, % 32 31 31
Employee turnover white-collar
employees, voluntary leave, % 6.0 7.6 6.4
Employee turnover blue-collar
employees, voluntary leave, % 6.6 8.9 7.8
Total turnover, voluntary leave, % 6.2 8.0 6.9
The Group reports the number of employees as full time equivalents (FTE) per
geographical spread and per professional category, as well as divided between
white-collar and blue-collar employees.
Social responsibility, continued
Atlas Copco Group 2023 55
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Water for All:
Employee community engagement
As stated in our Code of Conduct, Water for All is Atlas Copco Group’s main
community engagement initiative. Through the dedicated and passionate
work of volunteering employees, Water for All funds projects which empower
local communities all over the world through access to clean drinking water,
sanitation, and hygiene. In this way we are contributing to healthy societies,
free from conflict and poverty, and help to support vulnerable people’s
human rights. Women and young girls are particularly affected by the lack of
water and sanitation. All projects supported by Water for All aim to positively
impact the lives of women and girls in particular. All employee donations are
matched with twice as much by the company.
During 2023, an effect study of Water for All funded projects in Kenya,
India, and Malawi was conducted by an external consultant. The findings
indicate a high degree of efficiency and effectiveness in Water for All projects,
owing to a persistent focus on access to water, and competent imple-
mentation and project screening processes. A key to success is the active
involvement of the local beneficiaries in the project planning and execution.
The projects also show a generally high degree of social impact, with positive
effects for women and girls, community engagement, agriculture and
industry, welfare, and the environment. However, making long-term progress
within health is a challenge, as it has proven difficult to permanently change
behaviors linked to hygiene and sanitation. The effect study will act as an
important internal tool to support the future success of Water for All.
In 2023, Water for All supported some 70 water and sanitation projects
in 44 countries, in total reaching more than 300,000 people, including one
project in Australia targeting its indigenous population. In December our
3-year engagement in Northern Uganda also came to an end. The project
has been a joint endeavor between 14 Water for All organizations and the
Peter Wallenberg Water for All Foundation, targeting almost 30 000 people
in 48 villages.
Atlas Copco Group actively encourages employees to engage in Water
for All, through voluntary donations or by getting involved in one of the
local organizations. A central coordinator is supporting the global network
of local ambassadors. We track our progress through mandatory annual
reports, focusing both on
quantitative achievements
and qualitative best practice
sharing.
Water for All is the main
community engagement
initiative of both Atlas
Copco Group and Epiroc.
The numbers convey
Water for All’s global
achievements in 2023
including both companies.
HUMAN RIGHTS
The Atlas Copco Group is committed to respecting internationally
recognized human rights principles as defined by the United
Nations Universal Declaration of Human Rights. Our Code of
Conduct is our central guiding policy, complemented by our
Human Rights Statement.
Risks along the value chain
Human-rights related risks are present throughout the Group’s
value chain, mainly relating to our own employees and our suppli-
ers. Social conditions vary greatly in the countries where we and
our suppliers operate and some markets are associated with a high
risk of human rights violations, including non-compliance with
labor standards such as forced labor and child labor, poor working
conditions, discrimination or limitations in freedom of association.
Protecting the rights of all individuals that are affected by our activi-
ties or business relationships, and compliance with legislation and
internationally accepted standards, is crucial to both our opera-
tions and our reputation. The financial consequences of violations
may also be severe, for example in the form of legal penalties or
fines.
Human rights due diligence
Through our human rights due diligence procedures, Atlas Copco
Group seeks to identify, prevent and mitigate any adverse human
rights impacts that are linked to our operations, products or
services or business relationships.
Human rights due diligence is carried out when deemed
relevant, for example when entering a market that is perceived as
presenting severe human rights risks or in connection with
acquisitions.
We cooperate with business partners who share our respect for
human rights. All significant business partners must commit to our
Code of Conduct by signing a Business Partner Criteria document.
Human rights principles are also integrated in our business partner
evaluation to safeguard that our partners’ practices are aligned
with our standards. Read more on pages 59–60.
Training on policies and procedures
Increasing awareness among our employees and business part-
ners is an important part of our work to prevent human rights viola-
tions. All employees are required to participate in training in our
Code of Conduct and we also encourage our business partners to
take the training. In addition, the Group has developed a human
rights specific training which is available to all employees through
the Group’s intranet.
Fighting corruption is a central aspect to promoting human
rights, since corruption can undermine a government’s ability to
fulfill its human rights obligations. In markets with challenging legal
and political system, bilateral engagement with civil society is cru-
cial to successfully escalate human rights issues. Through member-
ships in local business associations and in cooperation with other
actors, we collaborate to further the Group’s values within this area.
Access to remedy
The Group’s SpeakUp system can be used to anonymously
report perceived human rights violations, see page 58.
Community investments
Community investments amounted to MSEK 35 (28).
Human Rights Statement
Our Human Rights Statement expands on the Group’s commitment
to respect and support human rights, which is an integral part of the
Code of Conduct. The statement reflects the corporate responsibility as
defined in the United Nations Guiding Principles on Business and Human
Rights which we have adopted. The statement can be found on our web-
site. In accordance with Section 54 of the UK Modern Slavery Act 2015,
the Group also publishes a yearly Modern Slavery Statement.
www.atlascopcogroup.com/en/sustainability/
living-by-the-highest-ethical-standards/human-rights
Social responsibility, continued
Atlas Copco Group 2023 56
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosure
• Social responsibility
Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social responsibility, continued
PRODUCT SAFETY
Our customers rely on us to provide products, services and tech-
nology that help them improve their efficiency and productivity,
while being safe and ergonomic to handle. We strive to live up to
their expectations and have a firm commitment to develop, manu-
facture and sell products and services that offer good quality, reli-
ability and operator safety. Failure to do so could be harmful to our
brand and business, and may also entail legal and regulatory risks.
Working systematically to improve and ensure the safety of our
products is therefore in focus in our product development process
and key for maintaining long-term customer relationships.
We provide and deliver a large range of products and services
that are used in many different industries and applications. By
developing solutions based on automation and digitization of prod-
ucts and services, both efficiency and safety for our customers and
users increase continuously.
Policy commitment and responsibilities
All our products must be compliant with relevant regulations and
industry standards, including regulations regarding the health and
safety of end users. We provide appropriate resources and compe-
tences to secure adequate product safety.
Safety assessments key in product development
Safety and operator experience is an integrated part in every stage
of the product design, which can include risk assessments and
testing to discover areas of improvement. Safety aspects are
important to us for each phase of the product’s lifecycle, from its
design to disposal. With regard to product labeling and marking we
ensure that our products can be safely operated when instructions
are followed.
We offer product safety training to employees. We train our own
employees, including field service engineers, in the safe use of
products as part of their onboarding and continuous competency
development. We also provide customer training when relevant
to secure the safe handling of our products.
To align with ISO 9001 Quality Management, many of the Group’s
products hold external certifications and markings, such as CSA,
SEMI, ETL, ATEX, among others. Obtaining and maintaining these
certifications include routine audits by independent third parties.
Monitoring of product and service safety performance
We make sure that any potential product-related safety incidents
are reported and followed up until satisfactory closure. Incidents
are thoroughly investigated, by internal experts, to determine their
root cause and what corrective actions should be taken, such as
potential changes to the product, retrofit campaigns, product
recalls and field service activities at customers. Performance is
tracked and the result is reported regularly to responsible managers.
Our customers rely on us to provide
products, services and technology
that help them improve their effi-
ciency and productivity, while being
safe and ergonomic to handle.
Atlas Copco Group 2023 57
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy disclosures
Social responsibility
• Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
The Atlas Copco Group promotes a culture of integrity through mutual respect, trust
and high ethical standards in all business interactions, externally as well as internally.
Officer informs the Board about any critical concerns and annually
about trends and statistics.
Non-retaliation commitment
The Code of Conduct includes a non-retaliation commitment to all
allegations raised in good faith. This clearly states that employees
are encouraged to report perceived misconduct, and that this will
never lead to adverse consequences for the individual, even if it
results in the loss of business.
Reported concerns through Speak Up, number 2023 2022
Fraud 26 13
Labor relations, including discrimination and
harassment
296
245
Corruption & regulatory breach 29 28
Conflicts of interest 21 7
Other 49 70
Total 421 363
In 2023, we received a total of 421 cases through the system. In 24
cases no evidence of wrongdoing was found and in 42 cases evi-
dence could confirm that no wrongdoing had occurred. In 8 cases,
appropriate disciplinary action, such as a written warning, were
taken against one or several employees as a result of the investiga-
tions. In 15 cases weaknesses were found in internal processes
which were followed up and remediated. One case was settled in
court. The remaining cases were under investigation at year end.
There were no significant fines or non-monetary sanctions for
non-competitive behavior or for non-compliance with laws and/or
regulations in the social and economic area during the year.
Preventing corruption and bribery
The Atlas Copco Group does not tolerate corruption or bribery in
any form, directly or through third parties. Firm disciplinary actions
will be taken on any violation of this rule. This applies to all employ-
ees, as well as to the Board of Directors, and in all business dealings
and transactions in all countries where we operate.
By the end of 2023, 99% of our employees (excluding employees
that were hired during the year) had participated in the new leader-
led training and 99% had signed the annual compliance statement.
New employees are required to participate in the leader-led train-
ing within 12 months of joining the Group. Performance against
these targets is followed up annually.
Whistleblowing system
Compliance with laws and regulations, as well as with the Code of
Conduct is mandatory. To be able to uphold this, it is important that
we are made aware of any suspected breaches of laws or of the
Code of Conduct. Therefore, we strongly encourage the reporting
of non-compliance concerns through our global external whistle-
blowing system, Speak Up.
SpeakUp is available publicly to all employees and other stake-
holders to raise concerns. It is independently operated by a third
party to ensure anonymity and is available 24 hours a day, 7 days a
week. Voice or text messages can be left in more than 70 lan-
guages. To ensure employees’ awareness of SpeakUp, it is refer-
enced in the mandatory annual Code of Conduct compliance con-
firmation. We receive cases from all regions where we operate,
which indicates that employees are well aware of the system.
The investigation process
All SpeakUp reports are screened and assigned to an impartial
investigator who is responsible for conducting the investigation.
The investigators are supported by Group Legal. All investigations
are professionally and confidentially handled. The SVP Chief Legal
CODE OF CONDUCT AND CORPORATE CULTURE
The Atlas Copco Group aims to earn the trust of everyone impacted
by our operations, by building relationships based on integrity, fair-
ness and respect – this is a vital part of the Group’s culture and we
expect the same high standards from our business partners.
The Code of Conduct is the Group’s central policy document
which sets out the fundamental ethical values and principles that
apply to all employees, the Board of Directors, and our business
partners. The Code of Conduct is based on international standards
such as the United Nations International Bill of Human Rights,
The United Nations Global Compact and the OECD Guidelines for
Multinational Enterprises. Read more on pages 33–34.
Division presidents have the ultimate responsibility for the
adherence to Group values and policies. Internal control is exer-
cised through distribution of responsibility and internal audits. The
Compliance Board oversees compliance with the Code of Conduct.
Communication and training
To make sure all employees are aware of the Group’s Code of Con-
duct and what is expected of them, we put significant weight on
communication, training and monitoring. All employees are
required to complete a leader-led ethics training every two years.
Every employee is also required to take an annual training and sign
a Code of Conduct compliance statement.
In 2023, a new ethics training was rolled out to all employees in
the Group. The training includes examples of ethical dilemmas,
covering all aspects of the Code of Conduct, and participants are
invited to discuss how the different situations should be handled.
Business conduct
Key performance indicators Target 2023 2022 2021 Comment
Employees sign the Group’s Code of Conduct compliance statement 100% 99% 99% 98%
Employees complete the biennial ethics training
1)
100% 99% – – Was first measured in 2023.
New employees participate in the ethics training within 12 months
100% 94% – – Was first measured in 2023.
Significant suppliers
2)
sign the Code of Conduct compliance statement 100% 90% 93% 93%
Significant distributors sign the Code of Conduct compliance statement 100% 94% 92% 87%
1)
Excluding employees hired in 2023.
2)
Significant suppliers to production and distribution units.
Atlas Copco Group 2023 58
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy disclosures
Social responsibility
• Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Corruption or facilitation payments are never acceptable in order
to secure a sale. This rule strengthens the brand and contributes to
fair market competition. There are no negative consequences, such
as demotion or other reprisals, for refusing to receive or pay bribes
or for reporting violations of our Code of Conduct.
The Group conducts internal audits of all operational entities
using a risk-based approach. Each entity is normally audited at least
every five years. All internal audits include an ethical review and an
audit of risks related to corruption. In 2023, 109 entities (18% of all
entities) were audited and no significant risks related to corruption
were identified during these audits.
Tax policy
The Atlas Copco Group recognizes the key role that tax plays in
advancing economic development and considers it vital to combat
corruption and support sound business practices in order to create
value for society. Atlas Copco Group believes in good corporate
practice in the area of tax management, balancing the interests of
various stakeholders, including governments and communities in
the countries in which the Group operates. Atlas Copco Group does
not engage in aggressive tax planning but instead takes care to
pay the correct taxes in its countries of operation. The Group’s tax
policy can be found on the website www.atlascopcogroup.com. See
note 8 of the consolidated financial statements for the details of
taxes paid, reported according to the International Financial
Reporting Standards (IFRS).
Disclosing tax by country
Atlas Copco Group openly discloses the corporate income tax
cost including the effective corporate tax rate in the annual report.
Revenues, corporate tax costs and other key figures are reported
via country-by-country reporting to tax authorities globally.
At present, there are no established international standards for
publicly reporting taxes paid by country and, therefore, different
companies’ data is not comparable. Considering various initiatives
on openly disclosing corporate tax costs, including the EU Directive
on public country- by-country reporting, we expect to disclose the
Group’s corporate tax cost by region or country within the next-
coming years.
RELATIONSHIPS WITH BUSINESS PARTNERS
Relationships with suppliers
Working with business partners who share Atlas Copco Group’s
respect for human rights and high standards regarding the envi-
ronment, safety, quality and business conduct is central to effi-
ciently manage risks and enhance sustainability along the value
chain. We therefore work continuously to assess and reduce the
risks associated with our value chain.
Our Code of Conduct is the backbone of our processes for a
responsible value-chain, reinforced by a signed commitment by
significant suppliers and distributors to follow the Code, together
with screening and regular on-site audits, customer sustainability
assessments and targeted training.
All significant business partners must commit to our Code of
Conduct by signing a Business Partner Criteria document. The
document has been translated into more than 30 languages and
is available on the Group’s website. At the end of 2023, 90% of our
significant suppliers* had signed the compliance statement.
The Atlas Copco Group has a large international supplier base,
which presents challenges as risks can vary greatly between coun-
tries. We use a risk-based approach and prioritize evaluating signif-
icant suppliers who represent the bulk of the purchase value and
suppliers in markets with high risks related to corruption, environ-
mental practices or human rights.
The Group’s purchasing strategies are decentralized to give the
organization higher flexibility and to ensure the right competence.
Purchasing councils oversee supply chain management at divi-
sional level, and come together as a part of the Group’s purchasing
council to develop central policies and tools that impact all opera-
tions. Local purchasing (non-core) is encouraged in order to gener-
ate societal value in the communities where Atlas Copco Group
operates, by creating job opportunities as well as generating direct
and indirect income. This is mostly carried out by local companies,
which decreases lead times and the environmental impact from
transport.
Evaluation process
Significant suppliers are evaluated during and after selection on
parameters based on international frameworks such as the UN
Global Compact and the International Labour Organization’s Decla-
ration on Fundamental Principles and Rights at Work. The evalua-
tion is conducted by the product companies, primarily by personnel
in the purchasing function. Training on how to carry out supplier
evaluations is available through the internal handbook of policies
and guidelines The Way We Do Things.
Business conduct, continued
* Definition of significant suppliers: All external suppliers of goods and services, direct and indirect, with a purchasing value above a set threshold, based on 12-month values from
October previous year to September current year. For suppliers in countries with heightened risk for human rights violations, environmental risks or corruption etc., the purchasing
threshold is lower (approximately 13% of set value).
Asia/Oceania, 39% North America, 13%
Europe, 45% South America, 3%
Atlas Copco Group 2023 59
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy disclosures
Social responsibility
• Business conduct
About the report
GRI content index
Auditor’s report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
The supplier evaluation process covers:
• Business partners’ record of governance, ethics and stance
against corruption
• Labor issues: Rejection of forced, compulsory or child labor,
elimination of discrimination, safeguarding employee health
and safety, collective bargaining rights
• Environmental performance: Waste management, chemicals
management, minimizing emissions, and an efficient use of
natural resources
• Human rights issues: Responsible sourcing and respect for
human rights in operations
At times, self-assessment checklists are sent to suppliers and
on-site evaluations are conducted regularly or when deemed nec-
essary. These result in a report which may include concrete sugges-
tions on improvements in the form of an action plan to be followed
up at an agreed time. Atlas Copco Group can provide experience
and know-how to suppliers who need support in order to comply
with the minimum standards set forth in the Business Partner
Criteria document. Suppliers who fail to meet the criteria and who
do not show a willingness to improve are rejected.
Significant suppliers´ commitment
1)
2023 2022
Suppliers, number 7 109 6 214
Suppliers asked for commitment to the
Code of Conduct, number
6 929
6 029
Suppliers that confirmed their commitment
to the Code of Conduct, %
90
93
Suppliers audited on safety, health, social,
governance and environmental issues
2)
966
922
Approved suppliers (no need to follow up) 837 880
Conditionally approved suppliers (monitored) 129 41
Rejected suppliers (relationship ended)
3)
0 1
1)
Significant suppliers to production and distribution units.
2)
Audits are conducted by Atlas Copco Group teams directly at the suppliers’ sites.
3)
Reasons for rejection relate to safety in the workplace, labor conditions, environment
issues, or non compliance of laws. Suppliers are rejected if they do not meet the
Group’s requirements and are not willing to improve.
Responsible sourcing of minerals
Mining and trading in certain raw materials can help finance armed
groups in areas associated with human rights violations. Although
the Group does not procure directly from smelters/refineries, some
parts of our supply chain do. Atlas Copco Group is not in the scope
of Dodd-Frank Act or the EU regulation 2017/821, but based on
concerns of human rights abuse, including forced labor, human
trafficking and child labor, and to support our customers in fulfilling
their obligations according to these Acts, we take measures to
detect and prevent the use of conflict minerals in our supply chain.
Atlas Copco Group requires its direct suppliers to commit to
responsible sourcing of all minerals used in the parts and products
they sell to us. This commitment is exercised through minerals data
collection and due diligence, every year. Moreover, all significant
suppliers must sign the Code of Conduct which includes an article
on responsible sourcing. The process is described in detail on our
website, www.atlascopcogroup.com.
The Atlas Copco Group has a comprehensive program to ensure
responsible sourcing and investigate the possible use of conflict
minerals in the components used in our products. The program
covers tin, tantalum, tungsten, gold and cobalt (added in 2020).
Data collection and due diligence using the Responsible Minerals
Initiative (RMI) guidelines and Cobalt Reporting Template (CRT) is
rolled out continuously.
Atlas Copco Group is a member of the RMI and adheres to its
guidelines by encouraging suppliers to source from smelters veri-
fied by a third party such as RMI’s Responsible Minerals Assurance
Process (RMAP). We also commit to transparency by submitting
reporting templates to customers about smelters in the supply
chain and collaborate with stakeholders.
Relationships with distributors and agents
The Atlas Copco Group requires that all significant distributors*
commit to our Code of Conduct by signing the Business Partner
Criteria document. Distributors who represent the bulk of the sales
value or who operate in high-risk markets are prioritized. At the end
of 2023, 94% of our significant distributors had signed the compli-
ance statement.
Atlas Copco Group has a large international distributor base.
The Group’s sales strategies are set by the divisions on a global
level and adapted to local market needs by the customer centers.
The sales strategies include choice of sales channels and distribu-
tor management. The marketing councils ensure cross-divisional
alignment and develop central policies and tools that impact all
operations, including programs for distributor certifications.
Sales compliance process
When relevant, the Atlas Copco Group partners with our customers
to address risks in the value chain. The Group’s customer assess-
ment tool is used to identify and evaluate potential environmental,
labor, human rights and corruption risks. The assessment is com-
plemented by in-depth dialogue and field visits.
General managers, and ultimately the divisional presidents, are
responsible for the implementation of Atlas Copco Group’s policies
and guidelines and making sales decisions. The Group’s legal
department supports the organization on trade compliance mat-
ters, including sanctions and export control. Since the beginning of
March 2022, the Group has paused all new orders for capital equip-
ment to Russia, except some equipment for humanitarian pur-
poses, such as medical equipment. We perform some services,
for example connected to legally binding warranty obligations,
but only after controlling that we can fulfill all trade compliance
obligations.
Business conduct, continued
* Definition of significant distributors: All external distributors, including agents and resellers with sales of the Group’s goods and services for a value above a set threshold, based
on 12-month values from October previous year to September current year. For distributors, agents and resellers in countries with a heightened risk for human rights violations,
environmental risks or corruption etc., the sales threshold is set to include all active distributors.
Atlas Copco Group 2023 60
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosures
Social responsibility
Business conduct
• About the sustainability
report
GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Other reporting frameworks
To accommodate stakeholders that are more familiar with the
Sustainability Accounting Standards Board (SASB), we have
also published a table with cross-references to information in
the annual report on page 65. Information relating to the SASB
standards for ‘Industrial machinery and goods’ is disclosed for
relevant aspects where data is available. However, the Group does
not claim to be compliant with the SASB reporting standards.
External assurance
Atlas Copco AB’s external auditors, Ernst & Young, have performed
a limited review of the sustainability report according to the GRI
Standards, see the Auditor’s report on page 66.
For questions about the sustainability report, please contact:
Anna Sjörén, Vice President Sustainability
sustainability@atlascopco.com
Changes in the reporting
Our ambition is to present an overview of the Group’s impact,
risks and opportunities and how we manage them, which is as
comprehensive and transparent as possible. We continuously
develop our reporting to increase transparency and to contribute
to a better understanding of our impact, as well as to provide
information requested by our stakeholders. This can result in both
the addition and removal of disclosures.
In 2023 year’s sustainability report, the GRI disclosure on eco-
nomic performance, 201–1 Direct economic value generated and dis-
tributed, has been removed. This reflects our belief that the Group’s
economic performance is best reflected in relation to the financial
targets, as presented on page 6. See also the value we create for
our stakeholders on page 11.
Restatements
Reported values are normally not corrected retroactively. When a
restatement of historically reported numbers is made, this can be
due to a change of calculation method or scope. If an adjustment
has been made compared to previous years, this is indicated in
connection with the respective chart or table.
As of 2023, restatements are done on an annual basis concerning
GHG data. See page 42.
Definitions
Operating costs include cost of sales, marketing expenses,
administration expenses, research and development expenses,
other operating expenses, deducted for employee wages and
benefits. COS, when presented in relation to sustainability
information, refers to cost of sales at standard cost in MSEK.
Sustainability aspects are integrated in the Group’s way of
operating and we therefore report financial and non-financial
data in an integrated annual report. The sustainability report has
been prepared in accordance with GRI Standards. Its content is
determined by issues where the Group has a significant impact on
the economy, environment and people, including human rights.
See information about the materiality analysis on page 32.
Reporting period and frequency
Atlas Copco Group publishes a sustainability report annually. This
report applies to the period January 1, 2023 through December
31, 2023, which is in line with the Group’s financial reporting. The
sustainability report was published on March 21, 2024.
Report boundary
The sustainability report covers the Atlas Copco Group, including
all units that are consolidated in the Group’s financial statements,
see pages 141–143. Operations divested during the year are
excluded, while acquired units are gradually included according to
internal guidelines. This may at times cause changes in reported
performance.
The environmental data covers all operations unless otherwise
stated. Supplier data covers production units and distribution
centers, while distributor data covers all applicable units.
Employee- related data covers all operations.
Data collection and verification
Sustainability data collection is integrated into the Group reporting
consolidation systems and collected on a monthly or quarterly
basis. Reported facts and figures in the sustainability report are
verified in accordance with the Group’s procedures for internal
control. Read more in the section “Internal control of financial and
sustainability reporting”, on pages 82–83.
Most data is monitored and reported at local operating unit level
and aggregated to division/ business area and Group level. Certain
science-based target categories, taxonomy revenue and project
data are reported at division level. Data verification is performed at
each level before submitted to external auditors.
About the sustainability report
Atlas Copco Group 2023 61
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosures
Social responsibility
Business conduct
About the sustainability
report
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
GRI Standard Disclosure Location Comments and omissions
General disclosures Nr Description
GRI 2:
General Disclosures 2021
2-1 Organizational details 18, 141–143
2-2 Entities included in the organization’s sustainability reporting 141–143
2-3 Reporting period, frequency and contact point 61
2-4 Restatements of information 41–42, 61
2-5 External assurance 66
2-6 Activities, value chain, and other business relationships Inside cover, 7–10,
19–31
For information on significant acquisitions and divestments, see pages 20,
23, 26 and 29.
2-7 Employees 52, 54–55 Omission: The Group reports aggregate number of full-time equivalents.
The figures broken down into full-time/part-time employees, and additional
workforce by gender, are currently not available in the Group's HR system
and cannot be reported.
2-8 Workers who are not employees 55 Omission: Additional workforce may be temporary or permanent, generally
employed by a third party. Additional workforce by gender or by type of
contractual relationship is currently not available in the Group's HR system
and cannot be reported.
2-9 Governance structure and composition 33, 74–77
2-10 Nomination and selection of the highest governance body 76
2-11 Chair of the highest governance body 78 The chair of the board is not a senior executive of Atlas Copco AB.
2-12 Role of the highest governance body in overseeing the management of impacts 33, 76
2-13 Delegation of responsibility for managing impacts 33
2-14 Role of the highest governance body in sustainability reporting 33
2-15 Conflicts of interest 76 The Atlas Copco Group operates in compliance with the Swedish Companies
Act which includes rules and procedures applicable to conflicts of interest.
2-16 Communication of critical concerns 58, 76, 83
2-17 Collective knowledge of the highest governance body 76
2-18 Evaluation of the performance of the highest governance body 76
2-19 Remuneration policies 103–104
2-20 Process to determine remuneration 76–77
2-21 Annual total compensation ratio Omission: Not reported at Group-level. Atlas Copco Group is committed to a
fair and sustainable remuneration policy, both to stay competitive as an
employer and from an internal equity perspective. We are currently not able
to report on this disclosure in a meaningful manner, but remain committed
to transparency in this regard.
2-22 Statement on sustainable development strategy 3–4, 77
2-23 Policy commitments 33–34
2-24 Embedding policy commitments 33–34, 58, 74
2-25 Processes to remediate negative impacts 32–34, 58
GRI content index
Statement of use Atlas Copco Group has reported in accordance with the Gri standards for the period 1 January, 2023 to 31 December, 2023.
GRI 1 used Gri 1: Foundation 2021
Atlas Copco Group 2023 62
the yeAr in review – sustAinAbility report
GRI Standard Disclosure Location Comments and omissions
General disclosures Nr Description
2-26 Mechanisms for seeking advice and raising concerns 58
2-27 Compliance with laws and regulations 44, 58
2-28 Membership associations 35
2-29 Approach to stakeholder engagement 33
2-30 Collective bargaining agreements 54
Material topic disclosures
GRI 3: Material topics 2021 3-1 Process to determine material topics 32 See more information on www.atlascopcogroup.com
3-2 List of material topics 32
3-3 Management of material topics 6, 33–34
ECONOMIC IMPACT
Economic performance
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34, 36, 67
GRI 201: Economic
performance 2016
201-2 Financial implications and other risks and opportunities due to climate change 37, 70 Omission: The assessment of climate-related risks and their financial
implications has started at divisional level. However, the outcome is not yet
consolidated and disclosed in quantitative terms outside the organization.
Anti-corruption
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34, 58
GRI 201: Economic
performance 2016
205-1 Operations assessed for risks related to corruption 59
205-2 Communication and training about anti-corruption policies and procedures 58–60 Omission: The percentage of employees and business partners are not
broken down by type or region.
205-3 Confirmed incidents of corruption and actions taken 58
Anti-competitive behavior 6, 33–34
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34, 58, 60
GRI 201: Economic
performance 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 58
ENVIRONMENTAL IMPACT
Energy
GRI 3: Material topics 2021 3-3 Management of material topics 33–34, 38
GRI 302: Energy 2016 302-1 Energy consumption within the organization 38
302-3 Energy intensity 38
Emissions
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34, 36, 38–39
GRI 305: Emissions 2016 305-1 Direct greenhouse gas emissions (Scope 1) 42
305-2 Energy indirect greenhouse gas emissions (Scope 2) 42
305-3 Other indirect greenhouse gas emissions (Scope 3) 42
305-4 Greenhouse gas emissions intensity 42
GRI content index, continued
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosures
Social responsibility
Business conduct
About the sustainability
report
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 63
the yeAr in review – sustAinAbility report
GRI Standard Disclosure Location Comments and omissions
Supplier environmental
assessment
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34
GRI 308: Supplier environ-
mental assessment 2016
308-1 New suppliers that were screened using environmental criteria 59–60 Significant suppliers, both new and existing, are identified using a risk-based
approach. Omission: Data for new suppliers is not specifically disclosed.
Environmental and social screening is conducted and reported jointly.
308-2 Negative environmental impacts in the supply chain and actions taken 59–60 Omission: Supplier audits cover both environmental and social aspects and
the data is not broken down into these categories.
SOCIAL IMPACT
Employment
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 55 Omission: The Group does not report turnover by age group and gender.
Occupational health
and safety
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34, 53–54
GRI 403: Occupational
health and safety 2018
403-1 Occupational health and safety management system 34, 53
403-2 Hazard identification, risk assessment, and incident investigation 53
403-3 Occupational health services 53
403-4 Worker participation, consultation, and communication on occupational health
and safety
53
403-5 Worker training on occupational health and safety 53
403-6 Promotion of worker health 53–54
403-7 Prevention/mitigation of occupational health/safety impacts directly linked by
business relationships
53
403-8 Workers covered by an occupational health and safety management system 34 Calculation based on units required to be ISO 45001-certified.
403-9 Work-related injuries 53–54
Training and education
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34, 52
GRI 404: Training and
education 2016
404-1 Average hours of training per year per employee 52 Omission: The Group does not have data broken down by gender.
404-2 Programs for upgrading employee skills and transition assistance programs 52, 54
404-3 Percentage of employees receiving regular performance and career
development reviews
52 Omission: The Group does not have data broken down by gender and
employee category.
Diversity and inclusion
GRI 3: Material topics 2021
3-3 Management of material topics 6, 33–34, 51
GRI 405: Diversity and equal
opportunity 2016
405-1 Diversity of governance bodies and employees 6, 51–52, 80–81 Omission: The Group does not, unless required for compliance with local
laws and regulations, gather data on diversity from employees or members
of governance bodies, such as belonging to a minority or vulnerable group.
Non-discrimination
GRI 3: Material topics 2021 3-3 Management of material topics 33–34, 51
GRI 406: Non-discrimination
2016
406-1 Incidents of discrimination and corrective actions taken 58
GRI content index, continued
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosures
Social responsibility
Business conduct
About the sustainability
report
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 64
the yeAr in review – sustAinAbility report
GRI Standard Disclosure Location Comments and omissions
Supplier social
assessment
GRI 3: Material topics 2021 3-3 Management of material topics 6, 33–34
GRI 414: Supplier social
assessment 2016
414-1 New suppliers that were screened using social criteria 59–60 Significant suppliers, both new and existing, are identified using a risk-based
approach. Omission: Data for new suppliers is not specifically disclosed.
Environmental and social screening is conducted and reported jointly.
414-2 Negative social impacts in the supply chain and actions taken 59–60 Omission: Supplier audits cover both environmental and social aspects and
the data is not broken down into these categories.
Customer health and
safety
GRI 3: Material topics 2021 3-3 Management of material topics
33–34, 57
416-2 Incidents of non-compliance concerning the health and safety
impacts of products and services
65 During 2023, there were no reported significant incidents of non-
compliance related to health and safety impacts of products and services
resulting in any significant fine, penalty or warning.
Marketing and labeling
GRI 3: Material topics 2021 3-3 Management of material topics
33–34
GRI 417: Marketing and
labeling 2016
417-2 Incidents of non-compliance concerning products and service
information and labeling
65 During 2023, there were no reported significant incidents of non-
compliance related to products and service information resulting in any
significant fine, penalty or warning.
Topic Metric Code Comment Page
Energy management 1. Total energy consumed
2. Percentage grid electricity
3. Percentage renewable energy RT-IG-130a.1 Total energy is reported in MWh, not in gigajoules. Percentage of grid electricity is not reported. 38
Employee health & safety 1. Total recordable incident rate (TRIR)
2. Fatality rate
3. Near-miss frequency rate (NMFR) RT-IG-320a.1 53–54
Fuel economy and emissions
in use-phase
Sales-weighted fuel efficiency for
non-road equipment
RT-IG-410a.2
Product fuel efficiency is not reported but the Group innovates to help customers increase energy
efficiency and reduce emissions. All projects for new and redesigned products should have targets for
reduced carbon impact. 39–42
Materials sourcing Description of the management of risks
associated with the use of critical materials RT-IG-440a.1 Risk management associated with conflict minerals is described. 60, 69
Remanufacturing design & services Revenue from remanufactured products
and remanufacturing services RT-IG-440b.1 Share of revenues is not reported but topic is addressed. 43
SASB Index
Table 1. Sustainability disclosure topics and accounting metrics
Metric Code Comment Page
Number of units produced by product category RT-IG-000.A Not reported.
Number of employees RT-IG-000.B 17
Table 2. Activity metrics
GRI content index, continued
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosures
Social responsibility
Business conduct
About the sustainability
report
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2023 65
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Climate and environment
EU Taxonomy regulation
disclosures
Social responsibility
Business conduct
About the sustainability
report
GRI content index
• Auditor’s limited
assurance report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Auditor’s Limited Assurance Report
on Atlas Copco AB’s Sustainability Report
Introduction
We have been engaged by the Board of Directors of Atlas Copco AB to under-
take a limited assurance engagement of Atlas Copco AB’s Sustainability
Report for the year 2023. Atlas Copco AB has defined the scope of the Sus-
tainability Report to the pages referred to in the GRI index on pages 62–65.
Responsibilities of the Board and Executive Management
The Board of Directors and Executive Management are responsible for the
preparation of the Sustainability Report in accordance with applicable crite-
ria. The criteria are defined on pages 61 in the Sustainability Report and con-
sist of the GRI Sustainability Reporting Standards, as well as the accounting
and calculation principles that the company has developed. This responsibil-
ity includes the internal control relevant to the preparation of a Sustainability
Report that is free from material misstatements, whether due to fraud or
error.
Responsibilities of the auditor
Our responsibility is to express a conclusion on the Sustainability Report
based on our limited assurance procedures. Our engagement is limited to
historical information presented in this document and does therefore not
cover future oriented information.
We have conducted our engagement in accordance with ISAE 3000
(revised) Assurance engagements other than audits or reviews of historical
financial information. A limited assurance engagement consists of making
inquiries, primarily of persons responsible for the preparation of the Sustain-
ability Report, and applying analytical and other limited assurance proce-
dures. A limited assurance engagement is different from and substantially
This is the translation of the auditor’s report in Swedish.
To Atlas Copco AB, corporate identity number 556014-2720
less in scope than reasonable assurance conducted in accordance with
IAASB’s Standards on Auditing and other generally accepted auditing stan-
dards in Sweden.
The firm applies International Standard on Quality Management 1, which
requires that we design, implement and operate a system of quality manage-
ment including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory
requirements. We are independent of Atlas Copco AB in accordance with
professional ethics for accountants in Sweden and have otherwise fulfilled
our ethical responsibilities in accordance with these requirements.
The procedures performed in a limited review do not enable us to obtain
assurance that we would become aware of all significant matters that might
be identified in a reasonable assurance engagement. The conclusion based
on limited assurance procedures does not provide the same level of assur-
ance as a conclusion based on reasonable assurance.
Our procedures are based on the criteria defined by the Board of Direc-
tors and the Executive Management as described above. We consider these
criteria suitable for the preparation of the Sustainability Report.
We believe that the evidence we have obtained is sufficient and appropri-
ate to provide a basis for our conclusions below.
Conclusions
Based on the limited assurance procedures we have performed, nothing has
come to our attention that causes us to believe that the Sustainability Report
is not prepared, in all material respects, in accordance with the criteria
defined by the Board of Directors and Executive Management.
Stockholm the date as evidenced by our electronic signature
Ernst & Young AB
Erik Sandström Outi Alestalo
Authorized Public Accountant Expert Member of FAR
Atlas Copco Group 2023 66
the yeAr in review – sustAinAbility report
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Risks, risk management and opportunities
All business activities involve risks, therefore there is a need for a structured and proactive approach to manage the
company’s risks, both locally and centrally within the organization. Well-managed risks can turn into opportunities
and add business value, while risks that are not well-managed can cause incidents and losses.
Atlas Copco Group’s global and diversified business towards many
customer segments results in a variety of risks and opportunities,
geographically and operationally. Thus, the ability to identify, ana-
lyze and manage risks is crucial for effective governance and con-
trol of the business. The aim is to achieve the Group targets with a
high risk awareness and well-managed risk taking, in line with the
strategy and within the frame of the handbook of policies and
guidelines The Way We Do Things. The Group sees the benefits of
efficient risk management both from risk reduction and business
opportunity perspective, which can lead to good business growth.
The Group’s risk management approach follows the Group’s
decentralized structure. Group functions for legal, insurance, sus-
tainability, treasury, tax, controlling and accounting, provide poli-
cies, guidelines and instructions regarding risk management. Local
companies are responsible for their own risk management, which
is monitored and followed up regularly, e.g. at local board meet-
ings. The work is regularly audited by internal and external audits.
The main risks identified through the Group’s enterprise risk man-
agement process and how they are handled are shown in the table
in this section.
Enterprise risk management
Atlas Copco Group has developed an ERM process to map strategic
risks. The methodology is applied on divisions, which is the highest
operational level in the Group. Annual workshops are held by each
divisional management team where risks are identified, analyzed,
assessed and managed to ensure a structured and proactive
approach to the risks the Group is exposed to. The ownership of
managing the risks lies within each division, while the Insurance
and Risk Management department manages the overall process,
moderates the sessions and consolidates the results on business
area and Group levels. This hands-on approach is also in line with
The Group’s decentralized structure.
The ERM framework is regularly adapted to better identify and
manage the Group’s and the divisions’ strategic risks. Risk insights
are provided to divisions, e.g. through risk self assessments per-
formed by the regional Holding functions, as well as workshops by
Group functions. Specific deep dives are also performed as the risk
landscape changes. A few workshops have for instance been con-
ducted in respect of climate change, human rights and compliance
risks. ESG related risks have been further incorporated into the
framework as well as the overall risk assessment process. All mate-
rial sustainability topics identified have also been fully integrated in
the risk assessment process.
Loss prevention
The main purpose of the Group’s loss prevention process is to pre-
vent potential property losses and business interruptions. Atlas
Copco Group’s Loss Prevention Standard stipulates Group require-
ments in regards of loss prevention for product companies and dis-
tribution centers, including areas like: construction, safety systems,
loss prevention procedures and plans that need to be prepared.
The process also includes recommendations related to natural haz-
ards. Great focus is put on identifying high exposed sites due to cli-
mate change, supporting prioritization of future investments. To
ensure alignment with the standard and to support sites’ under-
standing of how the standard applies to each site, around 25 risk
surveys are performed annually. The results from these risk surveys
are regularly consolidated and reported to Group Management.
Insurance
The Group Insurance Program is provided by the inhouse insur-
ance company Industria Insurance Company Ltd., which retains
part of the risk exposure for the following insurance lines; property
damage, business interruption, transport, and general and product
liability. Financial lines insurance and business travel insurance are
managed by the Group’s Insurance and Risk Management depart-
ment. However, Industria is not the insurer for these two lines.
Insurance capacity is purchased from leading insurers and reinsur-
ers by way of using international insurance brokers. Claims man-
agement services are partly purchased on a global basis from lead-
ing providers. Insurance policies are issued on a local basis to
ensure compliance with local insurance laws as required.
Risk management process
In Atlas Copco Group, Enterprise Risk Management is
not seen as a project but as a continuous process. The
risk environment changes over time and it is therefore
necessary to continuously identify, assess and manage
new risks. The defined framework is described in the
picture above.
ATLAS COPCO
GROUP
Enterprise Risk
Management
process
Monitor
and
re-evaluate
Risk
identification
Risk
management
Risk
evaluation
Risk
analysis
Atlas Copco Group 2023 67
ThE yEAR in REviEw – Risks, Risk MAnAGEMEnT And oppoRTuniTiEs
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Key risks and how they are handled by Atlas Copco Group
RISK CONTEXT MITIGATING ACTIVITIES OPPORTUNITIES
LEGAL AND
COMPLIANCE
Atlas Copco Group’s business operations are affected by
numerous laws, regulations and trade sanctions as well as
commercial and financial agreements with customers,
suppliers and other counterparties, and also by licenses,
patents and other intangible property rights.
• Inhouse lawyers on five continents support Group companies with advice on laws and
regulations, including compliance, as well as support with contract reviews. Proactive
training is also done.
• A yearly legal risk survey of all companies in the Group is performed in addition to
continuous follow-up of the legal risk exposure. The result of the survey is compiled,
analyzed and reported to the Board and the auditors.
• Group Legal is responsible for aligning and coordinating the compliance organization
which, in line with the Group’s decentralized structure, is hosted in the business areas
and divisions.
• Regular trainings are organized to create awareness around sanctions.
– Complying with legal norms and laws minimizes costs and
increases opportunities to strengthen the Group’s reputation.
It also develops reliable partnerships and improves business
stability.
– The ability to trade on all markets, in compliance with applica-
ble trade sanctions, increases revenue and lowers risk.
FINANCIAL
Changes in exchange rates can adversely affect Group earn-
ings when revenues from sales and costs for production and
sourcing are denominated in different currencies (transaction
risks). An adverse effect on Group earnings can also occur
when earnings of foreign subsidiaries are translated into SEK
and on the value of the Group equity when the net assets of
foreign subsidiaries are translated into SEK (translation risks).
The Group’s net interest cost is affected by changes in market
interest rates.
Funding risk refers to the risk that the Group and its subsidiar-
ies do not have access to financing on acceptable terms.
As in any business, there can be a credit risk linked to our
customers’ abilities to pay.
• A Financial Risk Management Committee meets regularly to manage financial risks.
• Atlas Copco Financial Solutions is responsible for these risks and supports Group
companies to implement financial policies and guidelines.
• The Group’s operations continuously monitor relevant exchange rates and try to
offset negative changes by adjusting sales prices and costs.
• Translation risks may be partially hedged by borrowings in foreign currency and finan-
cial derivatives.
• The Group’s Financial Risk Policy stipulates that a minimum amount of standby credit
facilities should exist and that a minimum average time to maturity for the external
debt is set.
• Stringent credit policies are applied and there is no major concentration of credit risk.
The provision for bad debt is based on historical loss levels and up-to-date information
and is deemed sufficient.
– Working proactively with financial risks protects and may
improve the profit margin and creates possibilities for more
stable cash flow. Overall, financial risk mitigation has the abil-
ity to improve business resilience for the Atlas Copco Group.
REPORTING
(INCLUDING TAX)
The risk related to the communication of financial information
to the capital market is that the reports do not give a fair view
of the Group’s true financial position and results of operations.
Reporting errors could result in management drawing the
wrong conclusions. However, with many small entities, the
material impact is low.
Taxes is an area with increased focus, especially transfer pric-
ing risks but also new tax rules and regulations.
Estimations sometimes form a portion of the sustainability
data which is reported, and thus by its nature the numbers
presented may not be representative of the Group’s impact.
• Group subsidiaries report their financial statements regularly in accordance with
International Financial Reporting Standards (IFRS). The Group’s consolidated financial
statements, based on those reports, are prepared in accordance with IFRS and appli-
cable parts of the Annual Accounts Act as stated in RFR 1 “Supplementary Rules for
Groups”.
• The Group’s operational and legal consolidated results are based on the same num-
bers and system. These are analyzed by divisional, business area, Group Management
and corporate functions before being published externally.
• The Group has procedures in place to ensure compliance with Group instructions,
standards, laws and regulations, for example internal and external audits.
• A Tax Committee meets regularly to manage tax risks.
• Group Tax monitors and ensures compliance with tax rules, regulations and guide-
lines. Transfer pricing policies and agreements are implemented in operations and
regularly updated. Quarterly updates on tax are presented to the Board and Group
Management.
• Atlas Copco Group reports sustainability information according to GRI Standards
and works with training to improve reporting practices.
• The Group is subject to the Corporate Sustainability Reporting Directive (CSRD) and is
preparing to report according to the European Sustainability Reporting Standards
(ESRS). One example of measures taken is the formation of a new Sustainability
Reporting and Disclosure Council.
– Integrated reporting provides a better understanding of
business risks and opportunities which in turn allows for
improved decision making. It also allows the company to
identify opportunities for business synergies.
– Addressing reporting risks increases trans parency and
improves the potential to represent the business fairly and
accurately.
– Improved reporting results in improved business insights
and risk management, especially when the data has been
integrated to highlight interdependencies.
– Efficient and consistent reporting based on clear standards
and principles creates transparency, supports decision
making and drawing the right conclusions.
– Increased reporting requirements on taxes improves
transparency.
MARKET
A widespread financial crisis and economic downturn would
not only affect the Group negatively but could also impact
customers’ ability to finance their investments. Changes in
customers’ production levels also have an effect on the Group’s
sales of spare parts, service and consumables.
In developing markets, new smaller competitors continuously
appear which may affect the Group negatively.
• Well-diversified sales to customers in multiple countries and industries. Sales of spare
parts and service are relatively stable in comparison to sales of equipment.
• Monthly follow-up of market, technology and sales development enables quick
actions.
• Agile manufacturing set-up makes it possible to quickly adapt to changes in the
demand for equipment.
• Leading position in most market segments provides economies of scale.
– A significant competitive advantage as a result of a strong
global presence, including growth markets.
– Opportunities to positively impact both society and environ-
ment, through the Group’s high-quality sustainable products
and high ethical standards.
– Continue to develop close, long-term and strategic relation-
ships with customers and suppliers.
Atlas Copco Group 2023 68
ThE yEAR in REviEw – Risks, Risk MAnAGEMEnT And oppoRTuniTiEs
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
RISK CONTEXT MITIGATING ACTIVITIES OPPORTUNITIES
REPUTATION
The Group’s reputation is a valuable asset which may be
affected in part through the Group’s operations or actions and
in part through the actions of external stakeholders. Products
must deliver on the brand promise and be of high quality, safe
and have a low negative impact on the environment when
used by the customer. There is potential for reputational risk
from non-compliance to product labeling standards or if there
are cases of false advertising.
Unsatisfied employees may potentially detract the Atlas Copco
Group brand.
• All Atlas Copco Group products are tested and quality assured. Product labeling is
monitored and there are regular communications trainings.
• The Group actively engages in stakeholder dialogue.
• Compulsory training in the Code of Conduct includes the yearly signing of a
compliance statement.
• A clear and well known corporate identity and brand management.
• An employee survey is carried out every two years and followed up actively.
• A robust crisis management process is in place and regularly tested.
– Brand positioning.
– Stakeholder engagement not only mitigates reputational risks
in certain cases but it also presents opportunities to increase
awareness and credibility of Atlas Copco Group’s brand
through improvements and innovations.
– Delivering tested and quality-assured products improves
customer satisfaction and promotes repeat business.
– Attract and develop employees who adhere to the Code of
Conduct.
PRODUCTION
Core component manufacturing is concentrated to a few loca-
tions and if there are interruptions or lack of capacity in these
locations, this may have an effect on deliveries or on the qual-
ity of products.
Production facilities could also have a risk of damaging the
environment through their operations, e.g. through hazardous
waste and emissions.
The Group is directly and indirectly exposed to raw material
prices.
The Group primarily distributes products and services directly
to the end customer. If the distribution is not efficient, it may
impact customer satisfaction, sales and profits. Damages and
losses during the course of distribution can be costly.
Some sales are made indirectly through distributors and rental
companies and their poor performance may have a negative
effect on sales.
The distribution of products results in CO2 emissions from
transport.
• Manufacturing units continuously monitor the production process, test the safety
and quality of products, make risk assessments, and train employees.
• Atlas Copco Group has an internal Loss Prevention Standard to ensure high level of
protection.
• Production units have developed business continuity plans.
• Ambition to certify all manufacturing units in accordance with the ISO 14001 standard.
• Physical distribution of products is concentrated to a number of distribution centers
and their delivery efficiency is continuously monitored.
• Resources are allocated to training and development of the service organization.
• As indirect sales are local/regional, the negative impact of poor performance is limited.
• Increased focus on safer and more effective transports to reduce losses, costs and
total emissions per transport.
– Continued opportunities to extensively promote operational
excellence to streamline production, minimize inefficiencies
and maintain a high flexibility in the production process.
– Continue to strengthen the relationship with customers
through timely deliveries of products and services.
– Transport efficiencies and safe transports can save the
customers time and cost while reducing the environ mental
impact of their own operations.
– Local production and services improves business agility for
the Group.
– Reduction of fuel costs and resource requirements which
decreases the Group’s carbon footprint.
SUPPLY CHAIN
Atlas Copco Group and its business partners, such as suppli-
ers, subcontractors and joint venture partners, must share the
same values as expressed in the Group’s Code of Conduct
regarding issues such as human rights standards and princi-
ples of ethical conduct.
The availability of many components is dependent on suppli-
ers, and efficient supply chains, and if they have interruptions
or lack capacity, this may affect deliveries.
Using a large number of suppliers gives rise to the risk that
products contain components which are not sustainably pro-
duced, e.g. hazardous substances or electronic components
containing conflict minerals, or components with a large
carbon footprint.
• Business partners are selected and evaluated based on objective factors including
quality, delivery, price, and reliability, as well as on social/environmental responsibility.
• Significant direct suppliers are required to have an approved environmental manage-
ment system.
• The presence of conflict minerals in the Group’s value chain is investigated and
eradicated.
• Establishment of a global network of sub-suppliers, to prevent supplier dependency.
• E-learning for business partners (suppliers and distributors) to raise awareness of the
Code of Conduct, including the requirement for significant business partner to sign
and follow the Code of Conduct. Action plans developed together with suppliers to
deal with shortcomings and deviations.
• The Group maintains lists of substances that are prohibited or restricted due to their
potential negative impact on health or the environment. Compliance with these lists is
part of the business partner criteria.
– Further increase business agility and reduce costs by improv-
ing supplier inventory management in response to changes
in demand.
– Continue to be a preferred business partner and promote
efficiency, sustainability and safety. Good supplier relations
help to improve the Group’s competitive position.
– Strengthen customer relationships by supporting customers
impacted by the Dodd Frank legislation on conflict minerals.
– Promote human rights and work towards improving labor
conditions, reducing corruption and conflicts in the entire
value chain.
GEOPOLITICAL
The Group is present in most parts of the world and geograph-
ical crisis might lead to trade restrictions.
The Group might inadvertently sell to sanctioned customers,
directly or indirectly,
• The Group regularly performs geopolitical assessments and build scenarios to
prepare for different outcomes.
• Production, supply chain and customer centers are located close to customers to
reduce any disruption.
• Constant checks are performed in the divisions to comply with sanction lists.
– With a decentralized organization and a strategy to remain
close to the customers, the Group can identify and respond
quickly to market shifts and changes in legislation.
Key risks and how they are handled by Atlas Copco Group, continued
Atlas Copco Group 2023 69
ThE yEAR in REviEw – Risks, Risk MAnAGEMEnT And oppoRTuniTiEs
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
RISK CONTEXT MITIGATING ACTIVITIES OPPORTUNITIES
INFORMATION
TECHNOLOGY (IT)
Atlas Copco Group relies on IT systems in its day-to-day
operations. Disruptions or faults in critical systems have a
direct impact on production.
Errors in the handling of financial systems can affect the
company’s reporting of results.
Theft or modification of intellectual property constitutes a
risk to our products and future business success.
Cyber security risks are increasing in importance and can
have a major impact on the Group’s operations.
The General Data Protection Regulation (GDPR), and other
comparable legislation, impacts the handling of personal data.
Failure to comply with GDPR or other IT-related regulations
may result in substantial fines and reputational damage.
• The Group has a global IT Security policy, including quality-assurance procedures that
govern IT operations. Information security is monitored through IT Security audits and
cyber-risk assessments. Standardized processes are in place for the implementation
of new systems, changes to existing systems and daily operations. The system land-
scape is based on well-proven technologies.
• IT Security tracks globally major downloads of files. Screening of business partners/
consultants working in our systems.
• Cyber security is regularly discussed, addressed and invested in by the IT Security
function. By performing cyber-risk assessments, awareness of cyber security risks
increases the readiness to quickly detect and respond to any attacks.
• Compulsory trainings for all employees are regularly performed.
• A privacy- and data compliance council tracks the essential activities to ensure
compliance with data privacy regulations.
• Increased focus on secure development process for our product software.
– Stable IT systems, secure IT environment and standardized
processes increase efficiencies and reduce costs.
– Quick action on major download of product development files
minimizes the potential damage.
– Quick action to address a cyber-attack gives opportunity to
stable work environment and business continuity.
– As the approach has been global, the Group is well prepared
to face future data privacy initiatives in all regions or
continents.
ACQUISITIONS
AND
DIVESTMENTS
When making acquisitions, there are risks related to the
selection and valuation of the potential targets as well as the
process of acquiring them. Integrating acquired businesses may
also be a complex and demanding process. There is no guar-
antee for an acquisition to be successful even if all steps are
done properly.
Annual impairment tests are made on acquired goodwill. If the
carrying values are not deemed justified in such tests, it can
result in a write-down, affecting the Group’s result.
• The Group’s Acquisitions Process Council has established a process for acquisitions.
The process is continually updated and improved to address and mitigate risks. The
Council also provides training and supports business units prior to, during and after
an acquisition. Before any acquisition is completed, a detailed due diligence will be
performed in order to evaluate the risks involved.
• Atlas Copco Group guidelines and policies are applied to assess and manage the
environmental and social impact of operations, as well as business conduct, in the
affected communities after an acquisition is completed.
– Acquisitions bring possibilities to enter new markets, seg-
ments, new technologies, new clients, increase revenues, etc.
– Identifying the obstacles to integration can allow the Group
to improve the process through methods such as job rotation,
training or teambuilding exercises. This would not only result
in a smoother process but also lower operational costs by
decreasing downtime and allowing newly acquired companies
to become even more productive and efficient.
– Established process for a faster integration of newly acquired
companies.
PRODUCT
DEVELOPMENT
One of the challenges to the Group ’s long-term growth and
profitability is to continuously develop innovative, sustainable,
and recyclable products that consume less resources over the
entire life cycle. The Group’s product offering is also affected by
national and regional legislation on issues such as emissions,
noise, vibrations, recycling, etc. However, there may be
increased risk of competition in emerging markets where
low-cost products are not affected to the same extent by
such rules.
• Continuous investments in research and development to develop products in line with
Group targets, including science-based targets, customer demand and expectations,
even during economic downturns.
• Designing products with a life-cycle perspective and measurable efficiency targets for
the main product categories in each division.
• Designing products with reduced emissions, vibrations or noise, and increased
recycling potential to meet legal requirements.
– Substantial opportunities to strengthen the competitive
edge by innovating high-quality, sustainable products and
creating an integrated value proposition for customers.
– Support internal and external stakeholders in reducing
carbon emissions.
CLIMATE AND
ENVIRONMENT
The primary drivers for external environmental risk are
physical changes in climate and natural resources, changes
in regulations, taxes and resource prices.
Natural disasters as a consequence of climate change can
disrupt own operations or impact the supply chain.
Increased fuel/energy taxes increase operational costs.
Regulations and requirements related to carbon-dioxide
emissions from products and industrial processes are
gradually increasing.
Climate-related and environmental events can affect all
of Atlas Copco Group’s operations and negatively affect
operations either directly or by disrupting the supply chain.
Market shifts toward a low-carbon economy may impact
the viability of certain sectors.
Biodiversity-related requirements on companies are
increasing.
• The loss prevention process prevents potential property losses and business
interruptions due to climate events and increased natural disasters.
• Atlas Copco Group, in close relationship with its customers, continuously develops
products with improved energy efficiency, reduced emissions and lower environ
-
mental footprint.
• The Group has several key performance indicators (KPIs) that address resource and
energy usage in order to reduce carbon-dioxide emissions.
• Strict processes for handling hazardous waste and chemicals are implemented in
all operational units. Compliance is audited regularly and awareness is reinforced
by training.
• All cooling agents in the Group’s products have a zero-ozone depleting impact during
the product’s lifecycle, and the aim is to continue to introduce cooling agents with
lower Global Warming Potential (GWP).
• The Group’s SHEQ Policy covers biodiversity-related aspects. ISO 14001 certifications
in major subsidiaries will support addressing relevant environmental focus areas.
– Working proactively with environmental risks can provide
significant opportunities to drive innovation at Atlas Copco
Group.
– Given that many customers are operating in areas of extreme
water stress/scarcity, water-efficient or water-recycling prod-
ucts can have a strong customer appeal. This presents a
strong business opportunity to extend the Group’s innova-
tions to the focused area of water consumption.
– Climate change impacts and predictions can induce changes
in consumers’ habits and behavior. As a result of climate
events, the Group’s customers can become more risk averse
and demand products with a lower impact on the environ-
ment. New businesses and business models that are being
served by the Group arise. For instance, increased renewable
energy generation and the surge in production of electrical
vehicles present opportunities to provide products to these
industries.
– Raised awareness of the subsidiaries’ impact on biodiversity
in their near surroundings can support activities to restore
flora and fauna.
Key risks and how they are handled by Atlas Copco Group, continued
Atlas Copco Group 2023 70
ThE yEAR in REviEw – Risks, Risk MAnAGEMEnT And oppoRTuniTiEs
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
• Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
RISK CONTEXT MITIGATING ACTIVITIES OPPORTUNITIES
TALENT
ATTRACTION
AND RETENTION
Atlas Copco Group must have access to and attract skilled and
motivated employees and safeguard the availability of compe-
tent managers to achieve established strategic and operational
objectives.
• The competence mapping and plan secure access to people with the right expertise
at the right time. Recruitment can be both external and internal. Internal recruitment
and job rotation are facilitated by the Internal job market.
• Salaries and other conditions are adapted to the market and linked to business
priorities. The Group strives to maintain good relationships with unions.
• Continuous contacts with universities and schools help recruiting new skills and
talents, and understanding the expectations of young generations.
– Motivated and skilled employees and managers are
crucial to achieve or exceed business goals and objectives.
SAFETY AND
HEALTH
Poor physical and mental health and too much stress among
employees affect the individual and can cause sick leave and
disturbances in the production.
Accidents or incidents in the workplace, due to the lack of
proper safety measures, harm employees and can negatively
affect the Group’s productivity and brand.
Atlas Copco Group recognizes the risk that serious diseases
and pandemics can interrupt business operations and harm
employees.
• The Group regularly assesses and manages safety and health risks in operations.
• Training is held regularly.
• The ambition is to certify all major units in accordance with the ISO 45001 standard.
• Workplace wellness programs.
• Atlas Copco Group’s business partners are trained in Group policies including the
approach to health and safety.
– Improved safety and wellbeing among employees increases
employee satisfaction and engagement, productivity and
strengthens the brand.
– Improving working conditions for customers and business
partners benefits their employees and local societies and
can enhance long-lasting relationships that result in repeat
orders.
HUMAN RIGHTS
Atlas Copco Group operates in countries/areas with high risk
of human rights violations, including child labor, forced or com-
pulsory labor, modern slavery, poor working conditions, limita-
tions of the freedom of association and discrimination.
The Group encounters customers who are exposed to human
rights issues.
Risks to the Group’s reputation may arise from relationships
with business partners who do not comply with internationally
accepted ethical, social and environmental standards.
• Guidance by interaction with well-established non-governmental organizations to
identify and mitigate risks.
• Policies and procedures corresponding to the UN Guiding Principles on Business
and Human Rights, which Atlas Copco Group has committed to since 2011.
• Due diligence process and integration of internal controls for human rights violations
in relevant processes.
• The Group customer sustainability assessment tool.
• Regular supplier evaluations in accordance with the UN Global Compact.
– Following the UN Guiding Principles on Business and Human
Rights to respect human rights reduces risks and costs.
– Strong business ethics help promote societal prosperity
and a more stable market place.
– Working with human rights positively impacts both the
Atlas Copco brand and stakeholder relations.
CORRUPTION
AND FRAUD
Corruption and bribery exist in many markets where Atlas
Copco Group conducts business.
Fraud or criminal deception intended to result in financial or
personal gain, is always present in global operations.
• Zero-tolerance policy on bribery and corruption, including facilitation payments.
• Internal control routines aimed at preventing and detecting deviations. The Internal
Audit function is established to ensure compliance with the Group’s corporate
governance, internal control and risk management policies.
• Control self-assessment tool to analyze internal control processes.
• Training in the Code of Conduct and signing compliance to the Code for all employees
and significant business partners.
• SpeakUp: the global Group misconduct reporting system to report violations
anonymously.
• The Group supports fair competition and forbids discussions or agreements with
competitors concerning pricing or market sharing.
– By fighting against corruption and fraud, Atlas Copco Group
has the opportunity to work with industry peers to influence
international market practices. Refusing to pay bribes may
cause temporary delays and setbacks; however it reduces
costs in both the long and short run, builds opportunities to
improve operational efficiencies and creates more stability in
society and in markets where the Group operates.
– Working against corruption and fraud improves the Group’s
credibility and transparency and creates more ways to
improve stakeholder relations.
Key risks and how they are handled by Atlas Copco Group, continued
Atlas Copco Group 2023 71
ThE yEAR in REviEw – Risks, Risk MAnAGEMEnT And oppoRTuniTiEs
Atlas Copco Group 2023 72
Share price development and returns
In 2023, the price of the A share increased 41.0% to SEK 173.6
(123.1) and the B share increased 34.5% to SEK 149.4 (111.1).
The annual total return on the Atlas Copco A share, equal to
dividend, redemption and the change in the share price,
including the distribution of Epiroc AB, was on average 21%
for the past ten years and 31% for the past five years. The
corresponding total return for Nasdaq Stockholm was 12%
and 16%, respectively.
Trading and market capitalization
The Atlas Copco shares are listed on Nasdaq Stockholm,
which represented 22.6% of the total trading of the A share
(30.9% of the B share) in 2023. Other markets, so called
Multilateral Trading Facilities (MTF), e.g. CBOE accounted
for 35.6% (35.4% of the B share), and the remaining 41.8%
(33.7% of the B share) were traded outside public markets,
for example through over-the-counter trading.
The market capitalization at year end 2023 was MSEK 815 902
(586 731) and the company represented 7.8% (6.3) of the total
market value of Nasdaq Stockholm. The Atlas Copco share
was the most traded share in 2023 (second most traded in
2022) by total turnover.
A program for American Depositary Receipts (ADRs) was
established in the United States in 1990. One ADR corre-
sponds to one share. The depositary bank is Citibank N.A.
At year end 2023, there were 91 670 227 ADRs outstanding,
of which 81 072 104 represented A shares and 10 598 123
represented B shares.
Personnel stock option program and repurchase of
own shares
The Board of Directors will propose to the Annual General
Meeting 2024 a similar performance-based long-term
incentive program as in previous years. The company’s hold-
ing of own shares on December 31, 2023 appears in the table
to the right.
The Atlas Copco AB share
Share information 2023-12-31 A share B share
Nasdaq Stockholm ATCO A ATCO B
ISIN code SE0017486889 SE0017486897
ADR ATLKY.OTC ATLCY.OTC
Total number of shares 3 357 576 384 1 560 876 032
% of votes 95.6 4.4
% of capital 68.3 31.7
Whereof shares held by Atlas Copco AB 47 893 133 0
% of votes 1.4 0.0
% of capital 1.0 0.0
0
50
100
150
200
250
300
350
400
450
20192018201720162015
SEK
Highest–lowest share
price, A share
General index
(OMXS)
Industrials index
(OMXSI)
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
1100000
1200000
1300000
1400000
1500000
1600000
1700000
1800000
1900000
2000000
Total average daily volume
traded A shares, thousands
0
2 500
5 000
7 500
10 000
0
20
40
60
80
100
120
140
160
180
200
20232022202120202019
Distribution of Epiroc AB
on June 18, 2018
Highest–lowest share
price, A share
General index
(OMXS)
Industrials index
(OMXSI)
Total average daily volume
traded A shares, thousands
202320222021
20192018 2020
0
10 000
20 000
30 000
SEK
1)
Adjusted for the share split in 2022
2)
Proposed by the Board of Directors
SEK
0
1
2
3
4
5
6
2023
2
2022202120202019201820172016201520142013
3.00
3.75
3.90
Dividend and redemption
per share, SEK
Add back extra ordinary
items, SEK
Earnings per share, SEK
Ordinary dividend per
share, SEK
Distribution of Epiroc AB
on June 18, 2018
Distribution of Epiroc AB
on June 18, 2018
Earnings and distribution per share
1)
Share price development
1)
Dividend
The Board of Directors proposes to the Annual General Meeting 2024 an
ordinary dividend of SEK 2.80 (2.30) per share to be paid for the 2023 fiscal
year. In order to facilitate a more efficient cash management, the dividend is
proposed to be paid in two equal installments. If approved, the ordinary divi-
dend has averaged 52% of basic earnings per share during the last five years.
The ambition is to distribute about 50% of earnings as dividends to share-
holders. See more information on page 18.
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
• The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
thE yEAr in rEviEw – thE AtlAS COPCO AB ShArE
Atlas Copco Group 2023 73
Ten largest shareholders *
December 31, 2023 % of votes % of capital
Investor AB 22.3 17.0
Swedbank Robur fonder 3.1 4.0
Handelsbanken fonder 2.3 2.0
SEB Investment Management 1.4 1.1
Nordea Investment Funds 1.1 1.0
Folksam 1.0 1.0
SPP Fonder AB 0.8 0.8
Avanza Fonder 0.8 0.8
Alecta Pensionsförsäkring 0.7 2.7
Länsförsäkringar fondförvaltning AB 0.5 0.7
Others 66.0 68.9
Total 100.0 100.0
– of which shares held by Atlas Copco AB 1.4 1.0
* Shareholders registered directly or as a group with Euroclear Sweden, the Swedish
Central Securities Depository.
Ownership structure
Number of shares, December 31, 2023 % of shareholders % of capital
1–500 61.6 0.2
501–2 000 20.0 0.6
2 001–10 000 13.7 1.6
10 001–50 000 3.7 1.9
50 001–100 000 0.4 0.7
>100 000 0.6 95.0
Total 100.0 100.0
Share issues
1)
Change of share capital, MSEK Amount distributed, MSEK
2015
Split 2:1
Share redemption
2)
1 229 613 104 shares at SEK 6 –393.0 –7 304.7
Bonus issue No new shares issued 393.0
2018 Split 2:1
Share redemption
3)
1 229 613 104 shares at SEK 8 –393.0 –9 704.6
Bonus issue No new shares issued 393.0
2022 Split 4 ordinary shares and 1 redemption share
Share redemption
4)
1 229 613 104 shares at SEK 8 –157.0 –9 731.8
Bonus issue No new shares issued 157.0
Important dates
2024 April 24 First quarter results
April 24 Annual General Meeting
April 25 * Shares trade excluding right to dividend of SEK 1.40
May 2 * Dividend payment date (preliminary)
May 16 Capital Markets Day
July 18 Second quarter results
October 18* Shares trade excluding right to dividend of SEK 1.40
October 24 Third quarter results
October 24 * Dividend payment date (preliminary)
2025 January 28 Fourth quarter results 2023
More information
• More data per share can be found on page 150 in the
four-year summary.
• For more information on distribution of shares, option pro-
grams and repurchase of own shares, see notes 4, 19 and 22.
• Detailed information on the share and debt can be found on
www.atlascopcogroup.com/investor-relations
Ownership category
December 31, 2023 % of capital
Shareholders domiciled abroad (legal entities and individuals) 52.8
Swedish financial companies 36.8
Swedish individuals 4.6
Other Swedish legal entities 2.0
Swedish social insurance funds 2.5
Swedish trade organizations 1.0
Swedish government and municipals 0.3
Total 100.0
1)
For more information please visit www.atlascopcogroup.com/investor-relations.
2)
1 217 444 513 shares net of shares held by Atlas Copco AB.
3)
1 213 080 695 shares net of shares held by Atlas Copco AB.
4)
4 865 921 644 shares net of shares held by Atlas Copco AB as of May 13, 2022.
Shareholders by country
December 31, 2023, percentage of capital
Other, 14% Sweden, 47%
The United
Kingdom, 8%
The United
States, 32%
Other, 14
%S
weden, 47%
The United Kingdom, 7% The United States, 32%
* Board of Directors proposal to the Annual General Meeting. The record date is the first trading
day after shares trade excluding the right to dividend.
The Atlas Copco AB share, continued
Ownership structure
At the end of 2023, Atlas Copco AB had 125 893 (115 459) share-
holders. The ten largest shareholders registered directly or as a
group with Euroclear Sweden, the Swedish Central Securities
Depository, by voting rights, accounted for 34% (35) of the voting
rights and 31% (32) of the capital. Swedish investors held 47% (50)
of the capital and represented 45% (47) of the voting rights.
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
• The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
thE yEAr in rEviEw – thE AtlAS COPCO AB ShArE
Atlas Copco Group 2023 74
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
• Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Copco AB is governed by Swedish legislation and regulations,
primarily the Swedish Companies Act, but also the rules of Nasdaq
Stockholm, the Swedish Corporate Governance Code (the Code),
the Articles of Association and other relevant rules.
Atlas Copco Group does not report any deviations from the Code
for the financial year 2023. The corporate governance report has
been examined by the auditors, see page 148.
Corporate governance
In the corporate governance report, Atlas Copco Group presents how applicable rules are implemented
in efficient control systems to achieve long-term growth. Good corporate governance is not only about
following applicable rules, it is also about doing what is right. The objective is to find the right balance
between risk and control in a decentralized management model. The goal is sustainability in pro ductivity
and profitability, as well as in governance.
Atlas Copco Group is a truly global industrial company, which
creates lasting value and empowers customers to drive soci-
ety forward in over 180 countries. Through energy-efficient
products that save carbon emissions, and by implementing
values and processes with respect for people and the planet,
Atlas Copco Group can contribute to a better tomorrow. As a
leading industrial innovator and global supplier, the Group
can play a role in combating climate change. The commitment
to reduce green-house gas emissions in line with the goals of
the Paris Agreement, and by setting Science-based targets,
the Group shows its ambition to be part of the transformation
to a low-carbon society.
The Atlas Copco Group Code of Conduct is the most import-
ant instrument to make sure the company always acts with
the highest ethical standards and integrity. The main interna-
tional ethical standards supported by the Group are the Inter-
national Bill of Human Rights, the International Labour Orga-
nization’s Declaration on Fundamental Principles and Rights
at Work, the OECD Guidelines for Multinational Companies
and the UN Global Compact. Atlas Copco Group is a member
of the UN Global Compact since 2008.
Meetings of the Board and the
Nomination Committee during 2023
Preliminary full-year 2022
results, the annual audit and
review of Power Technique
Meeting per
capsulam
Half-year report meeting
Board of Directors’
meetings and activities
nomination
Committee meetings
First-quarter results
meeting and review of
Vacuum Technique
Q1
Q2
Q3
Q4
JAN.
FEB.
MAR.
APR.
MAY
JUN.
JUL.
AUG.
SEP.
OCT.
NOV.
DEC.
Nomination
Committee
meeting
Nomination
Committee
meeting
Nomination
Committee
meeting
Statutory meeting
Review of management,
succession planning,
Industrial Technique and
strategy discussion
Preliminary information about a
potential project
The following information is available at
www.atlascopcogroup.com
• Atlas Copco AB Articles of Association
• The Code of Conduct
• Corporate governance reports since 2004
(as a part of the annual report)
• Information on Atlas Copco AB Annual General Meeting
The annual signing of the Code of
Conduct, together with training,
supports the company’s employees
to identify and handle ethical dilem-
mas and strengthens the aware-
ness of the Group’s values and
guidelines. Atlas Copco Group also
requests that significant business
partners commit to comply with the
Code of Conduct. This is further
supported by the third party oper-
ated system, SpeakUp, providing a channel for anonymous
reporting of suspected ethical misconduct. To safeguard the
Group’s reputation, the company relies on solid governance
and the leaders’ ability to defend values, including of course,
internal and external control and audits.
Hans Stråberg
Chair since 2014
Comment from the Chair
Third-quarter results meeting
and review of Compressor
Technique and Group
Treasury Report
Preliminary information about a
potential CEO resignation
Atlas Copco Group 2023 75
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
• Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
1. Shareholders
At the end of 2023, Atlas Copco AB had 125 893 (115 459) share-
holders. The ten largest shareholders registered directly or as a
group with Euroclear Sweden, the Swedish Central Securities
Depository, by voting rights, accounted for 34% (35) of the voting
rights and 31% (32) of the capital. Swedish investors held 47% (50)
of the capital and represented 45% (47) of the voting rights. The
largest shareholder is Investor AB, holding 17.0% of capital and
22.3% of votes. More information on Atlas Copco AB shareholders
can be found on pages 72–73.
2. General Meeting
In accordance with the Articles of Association, the Annual General
Meeting has sole authority for the election or dismissal of Board
members. However, employee representative Board members are,
by law, not appointed by the AGM. The General Meeting is Atlas
Copco Group’s supreme decision- making body in which all share-
holders are entitled to take part. Anyone registered in the share-
holders’ register who has given due notification to the Company of
their intention to attend, may join the meeting and vote for their
total shareholding. Atlas Copco Group encourages all shareholders
to vote at the General Meeting and share holders who cannot par-
ticipate in person may be represented by a proxy holder or vote by
mail. A shareholder or a proxy holder may be accompanied by two
assistants and a proxy form can be found prior to the General
Meeting at www.atlascopco group.com/agm.
The Annual General Meeting (AGM) 2023 was held on April 27,
2023 in Solna, Sweden. The Company also offered shareholders
the possibility to exercise their voting rights by mail voting. 66%
of the total number of votes in the Company and 66% of the shares
were represented.
Decisions at the AGM 2023 included:
• Adoption of the income statements and balance sheets of
Atlas Copco AB and the Group for 2022.
• Discharge of liability of the Company’s affairs during the
2022 financial year for the President and CEO and the Board of
Directors.
• Adoption of the Board’s proposal for profit distribution with a
dividend of SEK 2.30 per share to be paid in two installments.
The first installment amount will be SEK 1.15 per share and the
second installment amount will be SEK 1.15 per share.
• Amendment of the Articles of Association, allowing the Board to
invite visitors (i.e. non-shareholders) to attend a general meeting
of shareholders.
• That the number of directors elected by the AGM for a term end-
ing at the next AGM would be eight directors and no alternates.
• Election of the Board of Directors.
• A resolution of the Board of Directors’ fee.
• Approval of the remuneration report for 2022.
• Approval of the reported scope and principles for a performance
based employee stock option plan for 2023 including mandate
for the Board to decide upon repurchase and sales of Atlas
Copco AB shares to hedge the plan and previous similar plans.
• Election of Ernst & Young AB as auditor firm up to and
including the Annual General Meeting 2024.
Business areas and divisions
2. General Meeting
4. Board of Directors
1. Shareholders
9. Group Management
3. Nomination Committee
6. Remuneration Committee 5. Audit Committee
8. Internal Audit and Assurance
7. Auditor
0
20
40
60
80
2023
1)
2022
2)
2021
3)
2020
4)
2019
0
150
300
450
600
AGM, votes, %
EGM, votes, %
Shareholders and proxy holders, number
% Number
General Meeting Attendance
1)
AGM 2023, mail voting was available.
2)
AGM 2022, mail voting was available.
3)
AGM 2021, due to Covid-19 only mail
voting, no physical attendance.
4)
AGM 2020, due to Covid-19 mail
voting was available and
recommended.
EGM 2020, due to Covid-19 only mail
voting, no physical attendance.
Corporate governance, continued
AGM, votes, %
EGM, votes, %
Shareholders and proxy
holders, number
Annual General Meeting 2024
The Annual General Meeting will be held on April 24, 2024.
Shareholders who wish to contact the Nomination Committee
or have a matter addressed by the Board of Directors at the AGM
may submit their proposals by ordinary mail or e-mail to:
Atlas Copco AB, Attn: Chief Legal Officer, SE-105 23 Stockholm,
Sweden, nominations@atlascopco.com or board@atlascopco.com
Proposals have to be received by the Board of Directors and the
Nomination Committee respectively, no later than seven weeks
prior to the AGM to be included in the notice to the AGM and the
agenda.
Atlas Copco Group 2023 76
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
• Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
3. Nomination Committee
The Nomination Committee aims to propose a Board with a broad
and complementary experience from a number of important indus-
tries and markets. Experience from the manufacturing industry
with international coverage is viewed as especially valuable. The
committee also considers factors such as diversity, gender balance,
potential conflicts of interest etc. The Nomination Committee’s
diversity policy is based on section 4.1 in the Corporate Governance
Code. The eight Board members elected by the shareholders have
backgrounds from various industries. As proposed to the AGM
2023, three of the seven non-executive members are women.
Three members are born in the 1950’s, two in the 1960’s, and two in
the 1970’s. The Board members are of two different nationalities,
from Germany and a majority of the Board members coming from
Sweden. Increasing the diversity of the Board of Directors with
regard to gender is a priority for the Nomination Committee.
Based on the findings of the Chair of the Board, the Nomination
Committee annually evaluates the work of the Board. Further to
that, the Nomination Committee proposes the Chair to the Annual
General Meeting, prepares a proposal regarding number and
names of Board members, including Chair and a proposal for
remuneration to the Chair and other Board members not
employed by the Company, as well as a proposal for remuneration
for Board committee work. Finally, the Nomination Committee pro-
poses an audit firm including remuneration for the audit.
The proposals and the Nomination Committee’s statement will
be published at the latest with the notice to the AGM 2024. In view
of the Nomination Committee’s strive to reach gender balance, for
example in case of equal competence, the candidate that will lead
to improved gender balance should be proposed.
In compliance with the Swedish Corporate Governance Code and
the procedures adopted by the AGM 2016, the representatives of
the four largest shareholders, directly registered or ownership
grouped as listed in the shareholders’ register as of August 31,
2023, together with the Chair of the Board shall form the Nomina-
tion Committee. The members of the Nomination Committee for
the AGM 2024 were announced on September 11, 2023, and repre-
sented approximately 30% of all votes in the Company. The mem-
bers of the Nomination Committee receive no compensation for
their work in the committee.
Nomination Committee members for the AGM 2024:
Petra Hedengran, Investor AB, Chair of the Nomination Committee;
Jan Andersson, Swedbank Robur funds; Helen Fasth Gillstedt,
Handelsbanken Fonder AB; Mikael Wiberg, Alecta; and Hans
Stråberg, Atlas Copco AB, Chair of the Board.
4. Board of Directors
The Board of Directors is responsible for the overall organization,
administration and management of Atlas Copco Group in the best
interest of the Company and its shareholders. The Board is respon-
sible for following applicable rules and implementing efficient con-
trol systems in the decentralized organization. An efficient control
system offers the correct balance between risk and control. The
long-term goals are regularly evaluated by the Board based on the
Group’s financial situation and financial, legal, social and environ-
mental risks. The mission is to achieve a sustainable and profitable
development of the Group.
Board of Directors’ members
At the end of 2023 the Board of Directors consisted of eight elected
members, including the President and CEO. The Board also had two
employee representatives, each with one personal deputy. Atlas
Copco Group fulfilled the 2023 requirements of Nasdaq Stockholm
and the rules of the Swedish Corporate Governance Code regarding
independency of board members. The Swedish Corporate Gover-
nance Code states that a majority of the members of the board are
to be independent of the company and its management. Further,
according to the Code, at least two members must also be indepen-
dent of the company´s major shareholders. In line with the prepara-
tory documents to the Swedish Companies Act, which expresses a
positive view of active and responsible ownership, major sharehold-
ers of Swedish companies may appoint a majority of members with
whom they have close ties. The Code also stipulates that no more
than one of the directors elected by the shareholders’ meeting may
be on the executive management team of the company or one of its
subsidiaries. Normally, this place is taken by the CEO.
The Board of Directors’ work
The Board continuously addresses the Group’s strategic direction,
financial performance, and methods to maintain sustainable profit-
ability. They also continuously ensure that efficient control systems
are in place. The Board is regularly updated, informed and edu-
cated on topics related to sustainability, such as opportunities
related to new segments and technologies, new regulations and
the Group’s non-financial targets. The Board also follows up on the
compliance of the Code of Conduct as well as on the Group’s whis-
tleblowing solution, SpeakUp. Besides the general distribution of
responsibilities that apply, in accordance with the Swedish Compa-
nies Act and the Code, the Board and its committees (Audit Com-
mittee, Remuneration Committee and others) annually review and
adopt “The Rules of Procedure” and “The Written Instructions”, the
documents that govern the Board’s work and the distribution of
tasks between the Board, the committees and the President, as well
as the Company’s reporting processes.
The Board held nine meetings in 2023. Four were physical meet-
ings held at Atlas Copco AB in Nacka. Four meetings were held vir-
tually and one per capsulam. The attendance at Board meetings is
presented on page 78–79.
The Board continuously evaluates the performance of the President
and CEO, Mats Rahmström. For the Annual Audit, the Company’s
principal auditor, Erik Sandström, Ernst & Young AB, reported his
observations to the Board. The Board also had a separate session
with the auditor where members of Group Management were not
present.
Evaluation of the Board of Directors’ work
The annual evaluation of the Board of Directors’ work, including the
Board’s committees (Audit Committee, Remuneration Committee
and others) was conducted by the Chair of the Board, Hans
Stråberg. He evaluated the Board’s working procedures, compe-
tence and composition, including the background, experience and
diversity of Board members. His findings were presented to the
Nomination Committee.
Remuneration to the Board of Directors
Remuneration and fees are based on the work performed by the
Board. The AGM 2023 decided to adopt the Nomination Commit-
tee’s proposal for remuneration to the Chair and other Board mem-
bers not employed by the Company, and the proposed remunera-
tion for committee work. See also note 4.
• The Chair was granted an amount of SEK 3 200 000.
• Each of the other Board members not employed by the
Company was granted SEK 1 035 000.
• An amount of SEK 360 000 was granted to the Chair of the Audit
Committee and SEK 225 000 to each of the other members of
this committee.
• An amount of SEK 140 000 was granted to the Chair of the
Remuneration Committee and SEK 105 000 to each of the other
members of this committee.
• An amount of SEK 100 000 was granted to each non-executive
director who, in addition, participates in committee work decided
upon by the Board.
• The meeting further resolved that 50% of the director’s Board
fee could be received in the form of synthetic shares.
Atlas Copco Group 2023 77
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
• Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
5. Audit Committee
The Audit Committee is elected by the Board at the statutory Board
meeting after the Annual General Meeting and until the statutory
Board meeting the following year. The work of the Audit Committee
is directed by the Audit Committee Charter, which is reviewed and
approved annually by the Board. The Chair of the committee has
the accounting competence required by the Swedish Companies
Act and two of the members are independent from the Company
and its main shareholders. The Audit Committee’s primary task is to
support the Board of Directors in fulfilling its responsibilities in the
areas of audit and internal control, accounting, financial reporting
and risk management as well as to supervise the financial structure
and operations of the Group and approve financial guarantees and
capital contributions, delegated by the Board. The Audit Committee
work further includes reviewing internal audit procedures, moni-
toring the external auditor, considering any inspection findings,
review and monitor the independence of the external auditor, and
assist the Nomination Committee in the selection of the auditor.
During the year, the committee convened five times. All mem-
bers were present at these meetings. All meetings of the Audit
Committee have been reported to the Board of Directors and the
correspon ding Minutes have been distributed to the Board.
The Audit Committee members during 2023 were Anna Ohlsson-
Leijon, Chair, Johan Forssell and Hans Stråberg.
6. Remuneration Committee
The Remuneration Committee is elected by the Board at the statu-
tory Board meeting after the Annual General Meeting and until the
statutory Board meeting the following year. The work of the Remu-
neration Committee is directed by the Remuneration Committee
Charter, which is reviewed and approved annually by the Board.
The Remuneration Committee’s primary task is to propose to the
Board the remuneration to the President and CEO and a long-term
incentive plan for key employees. The purpose of a long-term
incentive plan is to align the interests of key personnel with those of
the shareholders. The guidelines for executive remuneration in
Atlas Copco Group aim to establish principles for fair and consis-
tent remuneration with respect to compensation, benefits, and ter-
mination. The base salary is based on competence, area of respon-
sibility, experience and performance, while the variable compensa-
tion is linked to predetermined and measurable criteria which can be
financial or non-financial. The guidelines for executive remuneration
are reviewed annually and the Annual General Meeting 2020
approved the guidelines for remuneration. See also note 4.
The Remuneration Committee had three meetings in 2023. All mem-
bers were present. During the year, the Remuneration Committee also
supported the President and CEO in determining remuneration to
the other members of Group Management. All meetings of the
Remuneration Committee have been reported to the Board and
the corresponding Minutes have been distributed to the Board.
The Remuneration Committee members during 2023 were
Hans Stråberg, Chair and Peter Wallenberg Jr. Staffan Bohman was
member until the AGM 2023 when Gordon Riske replaced him.
7. Auditor
The task of the external auditor is to examine Atlas Copco Group’s
consolidated accounts and annual report, as well as to review the
Board and the CEO’s management of the Company. At the AGM
2023 the audit firm Ernst & Young AB, Sweden, was elected external
auditor up to and including the AGM 2024 in compliance with a pro-
posal from the Nomination Committee. The principal auditor is Erik
Sandström, Authorized Public Accountant at Ernst & Young AB. At
the AGM 2023, Erik Sandström referred to the auditor’s report for
the Company and the Group in the annual report and explained the
process applied when performing the audit. He also recommended
adoption of the presented income statements and balance sheets,
discharge of liability for the President and CEO and the Board of
Directors, and adoption of the proposed distribution of profits.
8. Internal Audit and Assurance
Internal Audit and Assurance aims to provide independent and
objective assurance on internal control by conducting internal
audits. It reports five times per year to the Audit Committee.
Read more on pages 82–83.
9. Group Management
Besides the President and CEO, the Group Management during 2023
consists of four business area presidents and four senior vice presi-
dents responsible for the main Group functions; Corporate Communi-
cations, Human Resources, Controlling and Finance, and Legal. The
President and CEO is responsible for the ongoing management of the
Group following the Board’s guidelines and instructions.
Remuneration to Group Management
The guidelines for executive remuneration in Atlas Copco Group are
reviewed annually by the Board of Directors and presented to the
AGM for approval at least every four years. In 2020, the AGM decided
to adopt the Board’s proposal and a new proposal will be presented
at the AGM 2024. Other than for a clarification regarding the right of
the company to reclaim variable compensation, and minor editorial
changes, the new proposed guidelines remain the same as the most
recently adopted guidelines. No material comments warranting
additional changes to the guidelines have been provided since the
guidelines were adopted in 2020. The Board considers the revisions,
with the aforementioned clarification, to reflect the general interest
of the shareholders. The remuneration shall consist of base salary,
variable compensation, possible long-term incentives (employee
stock options), pension benefits and other benefits. The variable
compensation is limited to a maximum percentage of the base salary
and is linked to predetermined and measurable criteria which can be
financial or non-financial. Non-financial criteria for 2023 has been to
reduce the Group’s CO2 emissions. No fees are paid for board mem-
berships in Group companies.
Based on the guidelines for executive remuneration the Board of
Directors annually proposes a Remuneration Report to the AGM for
approval. In 2023, the AGM decided to approve the Remuneration
Report for 2022.
Statement of materiality and significant audiences
Atlas Copco AB is registered in Sweden and is legally governed by the
Swedish Companies Act (2005:551). This act requires that the Board of
Directors governs the Company to be profitable and create value for
its shareholders. However, Atlas Copco Group recognizes going
beyond this, extending it to integrating sustainability into its business
creating long-term value for all stakeholders, which is ultimately in the
best interest of the Company, the shareholders and society. The
significant stakeholder audience, as outlined in Atlas Copco Group’s
Code of Conduct, includes representatives of society, em ployees,
customers, business partners and shareholders.
The Code of Conduct is the central guiding policy for Atlas Copco
Group, and is owned by the Board of Directors. Its commitment goes
beyond the requirements of legal compliance, to supporting voluntary
international ethical guidelines. These include the United Nations Inter-
national Bill of Human Rights, International Labour Organization’s Decla-
ration on Fundamental Principles and Rights at Work, the ten principles
of the United Nations Global Compact, and OECD’s Guidelines for Multi-
national Enterprises. Atlas Copco Group has employed a stakehold-
er-driven approach in order to identify the most material environmental,
human rights, labor and ethical aspects of its business. These priorities
guide how the Group develops and drives its business strategy, as well as
its roadmap to support the UN Sustainable Development Goals.
The strategy and fundamentals for growth together with the Group
targets presen ted on page 6 aim at continuously delivering sustain-
able, profitable and inclusive growth for the Group. This means an
increased economic value creation and, simultaneously, a positive
impact on society and the environment, thus creating shared value.
Atlas Copco Group monitors and voluntarily discloses the progress
on these material financial and non-financial aspects, through an
externally assured, integrated annual report. In addition to the Annual
General Meeting, Atlas Copco Group also creates engagement oppor-
tunities so that non-shareholders can address the Group in various
stakeholder dialogues.
Atlas Copco Group 2023 78
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
• Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Name
Position, year of birth
Hans Stråberg
Chair since 2014, born 1957
Mats Rahmström
Board member, President and CEO, born 1965
Jumana Al-Sibai
Board member, born 1972
Heléne Mellquist
Board member, born 1964
Education M.Sc. in Mechanical Engineering, Chalmers
University of Technology, Gothenburg.
MBA from the Henley Management College,
United Kingdom.
University of Karlsruhe (TH), Karlsruhe Institute
of Technology, Germany and HEC Lausanne,
Switzerland, Diploma in Industrial Engineering.
Bachelor in International Business studies,
University of Gothenburg. Executive
Management, Stockholm School of Economics.
Nationality / Elected Swedish / 2013 Swedish / 2017 German / 2023 Swedish / 2022
External memberships Chair of AB SKF, Roxtec AB, CTEK AB and Anocca
AB. Board member of Investor AB and Mellby
Gård AB. Member of The Royal Swedish Academy
of Engineering Sciences.
Chair of Piab AB. Board member of Wärtsilä Oyj
Abp, Finland. Member of The Royal Swedish
Academy of Engineering Sciences.
Board of Trustees at FKFS (Forschungsinstitut für
Kraftfahr wesen und Fahrzeugmotoren Stuttgart),
Germany.
Board member of Thule Group AB.
Principal work experience
and other information
President and CEO for AB Electrolux. Various
executive positions in the Electrolux Group
based in Sweden and the U.S. EU Co-Chair TABD,
Trans-Atlantic Business Dialogue.
President and CEO of Atlas Copco AB*. President
of the Atlas Copco Tools and Assembly Systems
General Industry division. Before he was appointed
President and CEO he was Business Area President
for Industrial Technique.
Member of the Board of Management at MAHLE
GmbH with responsibility for Thermal Manage-
ment and CEO of MAHLE Behr GmbH & Co. KG*.
EVP/SVP positions at Robert Bosch GmbH with
focus on general management, sales, and strate-
gy. Director at Simon Kucher & Partners Strategy
& Marketing Consultants.
Executive Vice President and Chief Operating
Officer of Latour Group*. President of Volvo
Penta. Senior Vice President of Volvo Trucks
Europe, Senior Vice President of Volvo Trucks
International and CEO of Trans Atlantic AB.
Attendance
Board meetings 9 of 9 8 of 9 6 of 9
7)
9 of 9
Annual General Meeting Yes Yes Yes Yes
Independence
To Atlas Copco AB and
its management Yes No
3)
Yes Yes
To major shareholders No
4)
Yes Yes Yes
Fees and holdings
Total fees 2023, KSEK
1)
3 651 906 1031
Holdings in
Atlas Copco AB
2)
166 380 class A shares
132 000 class B shares
68 145 synthetic shares
58 348 class A shares
60 240 class B shares
928 297 employee stock options 3 499 synthetic shares 8 171 synthetic shares
Board of Directors
Board members
appointed
by the unions
Benny Larsson
Position: Board member
Year of birth: 1972
Nationality: Swedish
Elected: 2018
Board meetings: 9 of 9
Mikael Bergstedt
Position: Board member
Year of birth: 1960
Nationality: Swedish
Elected: 2004
Board meetings: 8 of 9
REFERENCES:
All educational institutions and companies are based in Sweden, unless otherwise stated.
1)
See more information on the calculation of fees in note 4.
2)
Holdings as per end 2023, including those of close relatives or legal entities and grant for 2023.
3)
President and CEO of Atlas Copco AB.
4)
Board member in Investor AB, which is a larger owner in Atlas Copco AB.
5)
President and CEO in Investor AB, which is a larger owner in Atlas Copco AB.
6)
Board member of an indirect owner of Atlas Copco AB.
7)
Full attendance since their election at the Annual General Meeting in April 2023.
* Current position.
Atlas Copco Group 2023 79
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
• Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Name
Position, year of birth
Johan Forssell
Board member, born 1971
Anna Ohlsson-Leijon
Board member, born 1968
Gordon Riske
Board member, born 1957
Peter Wallenberg Jr
Board member, born 1959
Education M.Sc. in Economics and Business
Administration, Stockholm School of
Economics.
B.Sc. in Business Administration and
Economics from Linköping University.
MBA programme at GSBA, Zurich, Switzerland,
in collaboration with the State University of New
York, United States, and BBA, Oekreal School of
Business, Zurich, Switzerland.
BSBA Hotel Administration, University of
Denver, United States, and International
Bachaloria, American School, Leysin,
Switzerland.
Nationality / Elected Swedish / 2008 Swedish / 2020 American / German / 2020 Swedish / 2012
External memberships Board member of EQT AB, Investor AB, Patricia
Industries AB, Wärtsilä Oyj Abp, Finland, Epiroc AB,
Confederation of Swedish Enterprise and Stockholm
School of Economics. Member of The Royal Swedish
Academy of Engineering Sciences.
Board member of Schneider Electric. Chair of the MTU Aero Engines, AG Munich,
Germany and Sunlight Group SA, Athens, Greece.
Member of the Executive Board for the non-profit
Hertie-Stiftung GmbH, Frankfurt, Germany.
Chair of Knut and Alice Wallenberg Foundation,
Wallenberg Foundations AB and FAM Förvaltning
AB (The Grand Group). Board member of Scania.
Principal work experience
and other information
President and CEO of Investor AB*. Managing
Director, Head of Core Investments and member
of the management group of Investor AB.
Group Executive Vice President and head of Business Area
Europe and Business Area Asia-Pacific, Middle East and Africa,
head of Group Consumer Direct Interaction development and
the product line Wellbeing at AB Electrolux*. Senior positions
within Electrolux Group including Head of Commercial &
Consumer Journey, CFO of AB Electrolux, CFO of Major
Appliances EMEA and Head of Electrolux Corporate Control &
Services. Chief Financial Officer of Kimoda. Various positions
within PricewaterhouseCoopers.
CEO of KION Group AG, Germany. Chairman of the
Management Board of Linde Material Handling
GmbH, Germany, Chairman of the Management
Board of Deutz AG, Germany, Managing Director of
KUKA Roboter GmbH, Germany, and management
positions at KUKA Schweiß anlagen & Roboter
GmbH, Germany and KUKA Welding Systems &
Robot Corporation, U.S.
President and CEO of The Grand Hotel
Holdings, General Manager, The Grand Hotel,
President Hotel Division Stockholm-Saltsjön.
Attendance
Board meetings 9 of 9 9 of 9 9 of 9 9 of 9
Annual General Meeting Yes Yes Yes No
Independence
To Atlas Copco AB and
its management Yes Yes Yes Yes
To major shareholders No
5)
Yes Yes No
6)
Fees and holdings
Total fees 2023, KSEK
1)
1 255 1 464 1 110 1 135
Holdings in Atlas Copco AB
2)
44 000 class B shares, 21 798 synthetic shares 1 400 class B shares, 11 523 synthetic shares 16 182 synthetic shares 666 668 class A shares, 21 798 synthetic shares
Board of Directors, continued
REFERENCES:
All educational institutions and companies are based in Sweden, unless otherwise stated.
1)
See more information on the calculation of fees in note 4.
2)
Holdings as per end 2023, including those of close relatives or legal entities and grant for 2023.
3)
President and CEO of Atlas Copco AB.
4)
Board member in Investor AB, which is a larger owner in Atlas Copco AB.
5)
President and CEO in Investor AB, which is a larger owner in Atlas Copco AB.
6)
Board member of an indirect owner of Atlas Copco AB.
7)
Full attendance since their election at the Annual General Meeting in April 2023.
* Current position.
Board members
appointed
by the unions
Thomas Nilsson
Position: Deputy to
Benny Larsson
Year of birth: 1972
Nationality: Swedish
Elected: 2021
Board meetings: 8 of 9
Helena Hemström
Position: Deputy to
Mikael Bergstedt
Year of birth: 1969
Nationality: Swedish
Elected: 2021
Board meetings: 9 of 9
Atlas Copco Group 2023 80
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
• Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Group Management
Besides the President and CEO, Group Management consists of four business area executives and four executives responsible
for the main Group functions; Corporate Communications, Human Resources, Controlling and Finance, and Legal.
Mats Rahmström
Mats Rahmström has held positions in sales,
service, marketing and general management
within the Industrial Technique business area.
He has been President of the Atlas Copco
Tools and Assembly Systems General Industry
division. Before he was appointed President
and CEO he was Business Area President for
Industrial Technique.
Position: President and CEO
Year of birth: 1965
Education: MBA from the Henley
Management College, United Kingdom.
Nationality: Swedish
Employed/In current position since:
1988/2017
External memberships: Chair of Piab AB.
Board member of Wärtsilä Oyj Abp, Finland.
Member of The Royal Swedish Academy of
Engineering Sciences.
Holdings in Atlas Copco AB
1)
58 348 class A shares
60 240 class B shares
928 297 employee stock options
Vagner Rego
Vagner Rego joined Atlas Copco Group as a
trainee engineer in São Paulo State, Brazil, and
was later appointed Business Line Manager
for Compressor Technique Service. He later
became Vice President Marketing and Sales
for the Compressor Technique Service division
in Belgium. Before he was appointed President
of the Compressor Technique Service division,
he was General Manager for Construction
Technique’s customer center in Brazil.
Position: Senior Executive Vice President
and Business Area President Compressor
Technique
Year of birth: 1972
Education: Mechanical engineering from
Mackenzie University and an MBA from
Ibmec Business School, both in Brazil.
Nationality: Brazilian
Employed/In current position since:
1996/2017
Holdings in Atlas Copco AB
1)
17 272 class A shares
316 991 employee stock options
Geert Follens
Geert Follens has held positions in purchasing,
supply chain and general management. He has
served as General Manager of Atlas Copco Com-
pressor Technique’s customer center in the Unit-
ed Kingdom. Before he became President of the
Vacuum Solutions division he was first President
of the Portable Energy division and then of the
Industrial Air division.
Position: Senior Executive Vice President and
Business Area President Vacuum Technique
Year of birth: 1959
Education: M. Sc. in Electromechanical
Engineering and a post-graduate degree in
Business Economics from the University of
Leuven, Belgium.
Nationality: Belgian
Employed/In current position since:
1995/2017
External memberships: Board member
of AB SKF.
Holdings in Atlas Copco AB
1)
18 792 class A shares
228 037 employee stock options
Henrik Elmin
Henrik Elmin joined Atlas Copco Group as Gen-
eral Manager for Atlas Copco Tools Customer
Center Nordic in the Industrial Technique
business area. He was later appointed President
of the General Industry Tools and Assembly
Systems division. Before his current position
he was President of the Industrial Technique
Service division.
Position: Senior Executive Vice President and
Business Area President Industrial Technique
Year of birth: 1970
Education: M.Sc. in Mechanical Engineering
from Lund Institute of Technology and an
MBA from INSEAD, France.
Nationality: Swedish
Employed/In current position since:
2007/2017
Holdings in Atlas Copco AB
1)
16 240 class A shares
427 316 employee stock options
1)
Holdings as per end 2023, including those held by related natural or legal persons. See note 22 for more information on the option programs and matching shares.
All educational institutions and companies are based in Sweden, unless otherwise indicated.
Andrew Walker
Andrew Walker has held several different
management positions in markets including
the United Kingdom, Ireland, Belgium and the
United States. Before his current position, he
was President of the Service division within
Compressor Technique.
Position: Senior Executive Vice President and
Business Area President Power Technique
Year of birth: 1961
Education: M.Sc. in Industrial Engineering
and an MBA, both from University College
Dublin, Ireland.
Nationality: Irish
Employed/In current position since:
1986/2014
Holdings in Atlas Copco AB
1)
29 797 class A shares
8 288 class B shares
375 333 employee stock options
Atlas Copco Group 2023 81
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
• Group Management
Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Eva Klasén
Eva Klasén joined Atlas Copco Group in 2000 as
Assistant Corporate Counsel and has since then
held several positions in the legal functions in
both Sweden and China. She has been support-
ing several M&A projects, setting up the legal
department in China and also being the General
Counsel for EMEA, leading the team of lawyers
in the area. Before her current position she was
Vice President, Deputy Chief Legal Officer.
Position: Senior Vice President,
Chief Legal Officer
Year of birth: 1975
Education: Master of Law from Lund University.
Nationality: Swedish
Employed/In current position since:
2000/2022
Holdings in Atlas Copco AB
1)
3 439 class A shares
105 772 employee stock options
Peter Kinnart
Peter Kinnart started his career at Atlas Copco
Group as business controller at Airpower in
Antwerp. He has held several management posi-
tions within different areas at Atlas Copco Group
in Belgium, Germany, Spain and Switzerland.
Prior to his current position, he was Vice Presi-
dent Business Control for the Atlas Copco’s
Business Area Compressor Technique.
Position: Senior Vice President,
Chief Financial Officer
Year of birth: 1969
Education: Master in Applied Economic Science
and a Master in Commercial Engineering from
the University of Antwerp (UFSIA), Belgium.
Nationality: Belgian
Employed/In current position since:
1993/2021
Holdings in Atlas Copco AB
1)
7 800 class A shares
170 701 employee stock options
Sara Hägg Liljedal
Sara Hägg Liljedal began her career as a
journalist working for different Swedish media.
Between 2007 and 2013 she worked as Press
Secretary for the Speaker of the Swedish
Parliament. She has also held roles as a Press
and PR Manager for Swedish investment ser-
vices companies Swedbank Robur and Skandia.
Before she was appointed Senior Vice President,
Chief Communications Officer, she was Media
Relations Manager for the Atlas Copco Group.
Position: Senior Vice President,
Chief Communications Officer
Year of birth: 1980
Education: BA in Journalism from
Stockholm University.
Nationality: Swedish
Employed/In current position since:
2018/2022
Holdings in Atlas Copco AB
1)
3 651 class A shares
240 class B shares
62 700 employee stock options
Cecilia Sandberg
Cecilia Sandberg began her career as Human
Resources consultant for a travel agency.
From 1999 to 2007 she held different Human
Resources roles at Scandinavian Airlines and
AstraZeneca. Between 2007 and 2015 she was
Vice President Human Resources for Atlas Copco
Group’s Industrial Technique business area.
Before she started in her current position she
was Senior Vice President Human Resources
at Permobil.
Position: Senior Vice President,
Chief Human Resources Officer
Year of birth: 1968
Education: B.Sc. in Human Resources and a
M.Sc. in Sociology from Stockholm University.
Nationality: Swedish
Employed/In current position since:
2017/2017
Holdings in Atlas Copco AB
1)
12 752 class A shares
600 class B shares
198 780 employee stock options
Group Management, continued
1)
Holdings as per end 2023, including those held by related natural or legal persons. See note 22 for more information on the option programs and matching shares.
All educational institutions and companies are based in Sweden, unless otherwise indicated.
Atlas Copco Group 2023 82
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
• Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Internal control over financial and
sustainability reporting
This section includes a description of Atlas Copco Group’s system of internal controls over financial reporting in accordance
with the requirements set forth in the Swedish Code of Corporate Governance and as stipulated by the Swedish Companies Act.
The purpose of well-developed internal controls over financial and
sustainability reporting is to ensure correct and reliable financial
statements and disclosures.
The basis for the internal control is defined by the overall control
environment. The Board of Directors is responsible for establishing
an efficient system for internal control and governs the work
through the Audit Committee and CEO. Group Management sets
the tone for the organization, influencing the control conscious-
ness of employees. One key success factor for a strong control
environment lies in ensuring that the organizational structure,
decision hierarchy, corporate values in terms of ethics and integrity
as well as authority to act, are clearly defined and communicated
through guiding documents such as internal policies, guidelines,
manuals, and codes.
The financial and sustainability reporting accounting policies and
guidelines are issued by Group Management to all subsidiaries,
which are followed up with newsletters and conference calls. Train-
ings are also held for complex accounting areas and new account-
ing policies. The policies and guide lines detail the appropriate
accounting for key risk areas such as revenues, trade receivables,
including bad debt provisions, inventory costing and obsolescence,
accounting for income taxes (current and deferred), financial
instruments and business acquisitions.
The internal control process is based on a control framework
that creates structure for the other four components of the pro-
cess – risk assessment, control activities, information and commu-
nication as well as monitoring. The starting point of the process is
the framework for internal control issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO),
www.coso.org.
1
Risk assessment
The company applies different processes to assess and identify the
main risks relating to financial reporting misstatements. The risk
assessments are regularly performed to identify new risks and fol-
low up that internal control is adequate to address the identified
risks. The key risk areas for the financial reporting and control activ-
ities that are in place to manage the risks are presented in the table
on the next page.
ATLAS COPCO GROUP’S INTERNAL
CONTROL SYSTEM
Control environment
Risk
assessment
Control activities
(see next page)
1 2
4 3
Monitoring
(see next page)
Information and
commu ni cation
(see next page)
Atlas Copco Group 2023 83
Introduction
This is Atlas Copco Group
The year in review
Business areas
Sustainability report
Risks, risk management
and opportunities
The Atlas Copco AB share
Corporate governance
Board of Directors
Group Management
• Internal control over
reporting
Financials
Other information
the yeAr in review – CorporAte GovernAnCe
Internal control over financial and sustainability reporting, continued
KEY FINANCIAL
REPORTING RISKS
Revenues are not recognized in the
appropriate accounting period
Trade receivables
are not appropriately valued
Inventory is not appropriately
valued at the lower of cost or net
realizable value
Income taxes are not accounted for
in accordance with applicable tax
legislation
Business acquisitions and
associated goodwill as well as
intangible assets are not
appropriately accounted for
2
Control activities
to manage key financial
reporting risks
Customer contracts are signed at
appropriate level within the Group.
Trade receivables and provisions for
bad debt are appropriately reconciled
at each reporting date.
Inventory counts are performed
on a regular basis.
Tax calculations are prepared and
reviewed at each reporting date.
All business acquisitions are approved
by the Board, CEO or Divisional
President.
Revenues are disaggregated and
analyzed by type (e.g. goods, services
and rental) and by period at local, divi-
sional, business area and Group level.
Credit assessments are performed,
and credit limits are reviewed on a
regular basis.
Inventories are appropriately
reconciled at each reporting date.
The effective tax rate for each countr y
is analyzed at each reporting date by
Group Tax.
Purchase price allocations are
prepared at divisional level and
reviewed at Group level.
Revenues for goods shipped are
scrutinized at period end against
shipping terms and the percentage of
completion for services and projects
are assessed at each reporting date.
Provisions for bad debts are made
according to Group policy.
Inventory costs are reviewed and
approved by the divisions.
Compliance with transfer pricing
policies is monitored regularly.
Goodwill impairment tests are
prepared at business area level and
reviewed at Group level.
Days of sales are analyzed at
local, divisional, business area
and Group level.
Inventory levels and the saleability
of inventory are assessed at each
reporting date together with
obsolescence.
Ongoing tax audits and disputes are
monitored by Group tax specialists.
3
Information and communication
The company has information and communication channels
designed to ensure that information is identified, captured and
communicated in a form and timeframe that enable managers
and other employees to carry out their responsibilities. Reporting
instructions and accounting guidelines are communicated to
personnel concerned through the financial and sustainability
reporting accounting policies and guidelines, which are included in
the handbook The Way We Do Things, and supported by, for exam-
ple, training programs for different categories of employees. A
common Group reporting system is used to report and consolidate
all financial information.
4
Monitoring
Examples of monitoring activities for the financial and
sustainability reporting include:
• Management at divisional, business area and Group level regu-
larly reviews the financial and sustainability information and
assesses compliance to Group policies.
• The Audit Committee and the Board of Directors regularly review
reports on financial and sustainability performance of the Group,
by business area and geography.
• The internal audit process aims to provide independent and
objective assurance on internal control. Furthermore, the process
aims to serve as a tool for employee professional development
and to identify and recommend leading practices within the
Group. Internal audits are annually planned or initiated by the
Group internal audit function with a risk-based approach. Internal
audits are conducted under leadership of Group internal audit
staff with audit team members having diverse functional compe-
tencies but always with expertise in accounting and controlling.
The results of the internal audits undertaken are regularly
reported to the Audit Committee and to Group Management.
• A control self-assessment (CSA) is performed primarily to sup-
port local unit managers to evaluate the status of their control
routines and to address areas for improvement. One of the areas
in the CSA is internal control, which includes internal control
over financial and sustainability reporting. Other areas include
legal matters, communication and branding, and the Code of
Conduct.
• The Group has an independent whistleblowing system where
employees and other stakeholders can anonymously report on
behavior or actions that are possible violations of laws or of
Group policies, including violations of accounting and financial
reporting guidelines and policies. The reporting system also
includes perceived cases of human rights violation, discrimina-
tion or corruption. The reports are treated confidentially and the
person reporting is guaranteed anonymity via an independent
third-party service provider. More information about the system
can be found on page 58.
• In the compliance process, all managers and all employees are
requested to sign a statement confirming understanding and
compliance to financial policies, the Code of Conduct and appli-
cable laws and regulations.
Financial statements and notes
MSEK unless otherwise stated
ATLAS COPCO GROUP Page
Consolidated income statement 85
Consolidated statement of comprehensive income 85
Consolidated balance sheet 86
Consolidated statement of changes in equity 87
Consolidated statement of cash flows 88
Note
1
Information of material accounting principles,
key sources of uncertainty in estimates and judgements 89
2 Acquisitions 94
3 Segment information 98
4 Employees and personnel expenses 101
5 Remuneration to auditors 105
6 Other operating income and expenses 105
7 Financial income and expenses 105
8 Taxes 105
9 Other comprehensive income 107
10 Earnings per share 107
11 Intangible assets 108
12 Property, plant and equipment 110
13 Investments in associated companies and joint ventures 111
14 Other financial assets 111
15 Inventories 112
16 Trade receivables 112
17 Other receivables 112
18 Cash and cash equivalents 112
19 Equity 113
20 Borrowings 114
21 Leases 116
22 Employee benefits 118
23 Other liabilities 124
24 Provisions 124
25 Assets pledged and contingent liabilities 124
26 Financial exposure and principles for control of financial risks 125
27 Related parties 129
PARENT COMPANY Page
Income statement 130
Statement of comprehensive income 130
Balance sheet 130
Statement of changes in equity 131
Statement of cash flows 132
Note
A1 Significant accounting principles 133
A2 Employees and personnel expenses and remuneration to auditors 134
A3 Other operating income and expenses 134
A4 Financial income and expenses 134
A5 Appropriations 135
A6 Income tax 135
A7 Intangible assets 135
A8 Property, plant and equipment 135
A9 Deferred tax assets and liabilities 136
A10 Shares in Group companies 136
A11 Other financial assets 136
A12 Other receivables 136
A13 Cash and cash equivalents 136
A14 Equity 136
A15 Post-employment benefits 137
A16 Other provisions 138
A17 Borrowings 138
A18 Other liabilities 139
A19 Financial exposure and principles for control of financial risks 139
A20 Assets pledged and contingent liabilities 139
A21 Directly owned subsidiaries 140
A22 Related parties 141
Atlas Copco Group 2023 84
FINANCIAL STATEMENTS
Introduction
This is Atlas Copco Group
The year in review
• Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
Parent company
Other information
Consolidated income statement
| For the year ended December 31 | |||
Amounts in MSEK | Note | 2023 | 2022 |
Revenues | 3 | ||
Cost of sales | – | – | |
Gross profit | |||
Marketing expenses | – | – | |
Administrative expenses | – | – | |
Research and development expenses | – | – | |
Other operating income | 6 | ||
Other operating expenses | 6 | – | – |
Share of profit in associated companies and joint ventures | 13 | ||
Operating profit | 3, 4, 5, 15 | ||
Financial income | 7 | ||
Financial expenses | 7 | – | – |
Net financial items | – | – | |
Profit before tax | |||
Income tax expense | 8 | – | – |
Profit for the year | |||
| Profit attributable to: | |||
– owners of the parent | |||
– non-controlling interests | |||
Basic earnings per share, SEK | 10 | ||
Diluted earnings per share, SEK | 10 | ||
Consolidated statement of comprehensive income
| For the year ended December 31 | |||
Amounts in MSEK | Note | 2023 | 2022 |
Profit for the year | |||
| Other comprehensive income | |||
| Items that will not be reclassified to profit or loss | |||
Remeasurements of defined benefit plans | – | ||
Income tax relating to items that will not be reclassified | – | ||
– | |||
| Items that may be reclassified subsequently to profit or loss | |||
| Translation differences: | |||
– on foreign operations | – | ||
Hedge of net investments in foreign operations | – | ||
Cash flow hedges | |||
Income tax relating to items that may be reclassified | – | ||
– | |||
Other comprehensive income for the year, net of tax | 9 | – | |
Total comprehensive income for the year | |||
| Total comprehensive income attributable to: | |||
– owners of the parent | |||
– non-controlling interests | |||
Atlas Copco Group 2023 85
FINANCIAL STATEMENTS
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
• Consolidated income
statement
• Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
Parent company
Other information
Consolidated balance sheet
Amounts in MSEK | Note | Dec. 31, 2023 | Dec. 31, 2022 |
| ASSETS | |||
| Non-current assets | |||
Intangible assets | 11 | ||
Rental equipment | 12 | ||
Other property, plant and equipment | 12 | ||
Right-of-use assets | 21 | ||
Investments in associated companies and joint ventures | 13 | ||
Other financial assets | 14 | ||
Other receivables | |||
Deferred tax assets | 8 | ||
Total non-current assets | |||
| Current assets | |||
Inventories | 15 | ||
Trade receivables | 16 | ||
Income tax receivables | |||
Other receivables | 17 | ||
Other financial assets | 14 | ||
Cash and cash equivalents | 18 | ||
Assets classified as held for sale | |||
Total current assets | |||
TOTAL ASSETS |
Amounts in MSEK | Note | Dec. 31, 2023 | Dec. 31, 2022 |
EQUITY | Page 87 | ||
Share capital | |||
Other paid-in capital | |||
Reserves | |||
Retained earnings | |||
Total equity attributable to owners of the parent | |||
Non-controlling interests | |||
TOTAL EQUITY | |||
| LIABILITIES | |||
| Non-current liabilities | |||
Borrowings | 20 | ||
Post-employment benefits | 22 | ||
Other liabilities | |||
Provisions | 24 | ||
Deferred tax liabilities | 8 | ||
Total non-current liabilities | |||
| Current liabilities | |||
Borrowings | 20 | ||
Trade payables | |||
Income tax liabilities | |||
Other liabilities | 23 | ||
Provisions | 24 | ||
Total current liabilities | |||
TOTAL EQUITY AND LIABILITIES |
Information concerning assets pledged and contingent liabilities is disclosed in note 25.
Atlas Copco Group 2023 86
FINANCIAL STATEMENTS
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
Parent company
Other information
Consolidated statement of changes in equity
2023 | Equity attributable to owners of the parent | |||||||
Amounts in MSEK | Share capital | Other paid-in capital | Hedging reserve | Trans lation reserve | Retained earnings | Total | Non-controlling interests | Total equity |
Opening balance, Jan. 1 | – | |||||||
Profit for the year | ||||||||
Other comprehensive income for the year | – | – | – | – | – | |||
Total comprehensive income for the year | – | |||||||
Dividend | – | – | – | – | ||||
Acquisition of series A shares | – | – | – | |||||
Divestment of series A shares | ||||||||
Change of non-controlling interests | – | – | – | |||||
| Share-based payment, equity settled: | ||||||||
– expense during the year | ||||||||
– exercise option | – | – | – | |||||
– related tax | ||||||||
Closing balance, Dec. 31 | ||||||||
2022 | Equity attributable to owners of the parent | |||||||
Amounts in MSEK | Share capital | Other paid-in capital | Hedging reserve | Trans lation reserve | Retained earnings | Total | Non-controlling interests | Total equity |
Opening balance, Jan. 1 | – | |||||||
Profit for the year | ||||||||
Other comprehensive income for the year | ||||||||
Total comprehensive income for the year | ||||||||
Dividend | – | – | – | |||||
Redemption of shares | – | – | – | – | ||||
Increase of share capital through bonus issue | – | |||||||
Acquisition of series A shares | – | – | – | |||||
Divestment of series A shares | ||||||||
Change of non-controlling interests | ||||||||
| Share-based payment, equity settled: | ||||||||
– expense during the year | ||||||||
– exercise option | – | – | – | |||||
Closing balance, Dec. 31 | – | |||||||
Atlas Copco Group 2023 87
FINANCIAL STATEMENTS
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
• Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
Parent company
Other information
Consolidated statement of cash flows
| For the year ended December 31 | |||
Amounts in MSEK | Note | 2023 | 2022 |
| Cash flows from operating activities | |||
Operating profit | |||
| Adjustments for: | |||
Depreciation, amortization and impairment | 11, 12, 21 | ||
Capital gain/loss and other non-cash items | |||
Operating cash surplus | |||
Net financial items received/paid | – | – | |
Taxes paid | – | – | |
Pension funding and payment of pension to employees | – | – | |
Cash flow before change in working capital | |||
| Change in: | |||
Inventories | – | – | |
Operating receivables | – | – | |
Operating liabilities | |||
Change in working capital | – | – | |
Increase in rental equipment | – | – | |
Sale of rental equipment | |||
Net cash from operating activities | |||
| For the year ended December 31 | |||
Amounts in MSEK | Note | 2023 | 2022 |
| Cash flows from investing activities | |||
Investments in other property, plant and equipment | 12 | – | – |
Sale of other property, plant and equipment | |||
Investments in intangible assets | 11 | – | – |
Acquisition of subsidiaries | 2 | – | – |
Investment in other financial assets, net | |||
Net cash from investing activities | – | – | |
| Cash flows from financing activities | |||
Ordinary dividend | – | – | |
Dividend paid to non-controlling interest | – | ||
Redemption of shares | – | ||
Repurchase of own shares | – | – | |
Divestment of own shares | |||
Borrowings | |||
Repayment of borrowings | – | – | |
Settlement of CSA 1 | – | – | |
Payment of lease liabilities | 21 | – | – |
Net cash from financing activities | – | – | |
Net cash flow for the year | – | ||
Cash and cash equivalents, Jan. 1 | |||
Net cash flow for the year | – | ||
Exchange-rate difference in cash and cash equivalents | – | ||
Cash and cash equivalents, Dec. 31 | 18 | ||
1 Credit Support Annex, see note 26.
Atlas Copco Group 2023 88
FINANCIAL STATEMENTS
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
• Consolidated statement of
cash flows
Notes
Parent company
Other information
Atlas Copco Group 2023 89
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 90
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements, continued
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 91
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements, continued
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 92
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements, continued
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 93
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements, continued
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2. Acquisitions
| The following summarizes the acquisitions during 2023 and 2022: | ||||||
| Number of | ||||||
| Acquisition date | Country | Business area | Revenues 1 | employees 1 | ||
2023 | Dec. 5 | Sykes Group Pty Ltd (Sykes) | Australia | Power Technique | 455 | 123 |
2023 | Nov. 14 | Hamamcıoğlu Makina (HAMAK) | Türkiye | Compressor Technique | 75 | 23 |
2023 | Oct. 16 | ACJ, s.r.o. | Slovakia | Compressor Technique | 2 | 14 |
| William G Frank Medical Gas Testing and Consulting, | ||||||
2023 | Oct. 11 | LLC & Medical Gas Credentialing LLC | U.S.A. | Compressor Technique | 20 | 8 |
2023 | Aug. 3 | Climorent | Spain | Power Technique | 21 | 15 |
2023 | Jul. 17 | ZEUS Co.,Ltd | South Korea | Vacuum Technique | 2 | 59 |
2023 | Jul. 4 | Extend3D GmbH | Germany | Industrial Technique | 32 | 16 |
2023 | Jun. 1 | National Pump & Energy | Australia | Power Technique | 1 400 | 420 |
2023 | May 23 | Maziak Compressor Services Ltd. | United Kingdom | Compressor Technique | 87 | 40 |
2023 | May 4 | C.P. Service SRL | Italy | Compressor Technique | 60 | 13 |
2023 | May 2 | James E. Watson & Co. | U.S.A. | Vacuum Technique | 2 | 7 |
2023 | Apr. 5 | Shandong Bozhong Vacuum Technology Co.,Ltd | China | Vacuum Technique | 120 | 116 |
2023 | Apr. 4 | Asven S.R.L. | Argentina | Compressor Technique | 2 | 10 |
2023 | Apr. 4 | Trillium US Inc. | U.S.A. | Vacuum Technique | 270 | 140 |
2023 | Mar. 7 | FS Medical Technology Business | U.S.A. | Compressor Technique | 71 | 32 |
2023 | Feb. 2 | CVS Engineering GmbH | Germany | Vacuum Technique | 200 | 76 |
2023 | Jan. 17 | MedCore Services Inc. | Canada | Compressor Technique | 10 | 7 |
2022 | Dec. 5 | Shandong Meditech Medical Technology Co., Ltd | China | Compressor Technique | 114 | 70 |
2022 | Dec. 2 | Suzhou Since Gas System Co., Ltd | China | Compressor Technique | 93 | 80 |
2022 | Nov. 21 | Montana Instruments Corporation | U.S.A. | Vacuum Technique | 106 | 38 |
2022 | Nov. 11 | Northeast Compressor | U.S.A. | Compressor Technique | 2 | 6 |
2022 | Nov. 9 | Entreprises Larry Inc. | Canada | Compressor Technique | 2 | 65 |
2022 | Nov. 2 | Precision Pneumatics Ltd | United Kingdom | Compressor Technique | 2 | 26 |
2022 | Nov. 2 | Wearside Pneumatics Ltd | United Kingdom | Compressor Technique | 2 | 19 |
2022 | Nov. 2 | Shandong Jinggong Pump Co., Ltd | China | Vacuum Technique | 102 | 100 |
2022 | Nov. 2 | Aircel, LLC. | U.S.A. | Compressor Technique | 55 | 19 |
2022 | Oct. 17 | Vector Sp. z o.o. | Poland | Compressor Technique | 2 | 23 |
2022 | Oct. 4 | Mesa Equipment & Supply Company | U.S.A. | Compressor Technique | 2 | 19 |
2022 | Sep. 5 | DF-Druckluft-Fachhandel GmbH | Germany | Compressor Technique | 2 | 39 |
2022 | Sep. 2 | Oxymat A/S | Denmark | Compressor Technique | 411 | 146 |
2022 | Aug. 1 | LEWA GmbH | Germany | Power Technique | 2 400 | 1 200 |
2022 | Aug. 1 | Geveke B.V | Netherlands | Power Technique | 648 | 173 |
2022 | Jul. 29 | Compressed Air Products, Inc. (operating assets) | U.S.A. | Compressor Technique | 2 | 20 |
2022 | Jul. 27 | Glaston Compressor Services Ltd | United Kingdom | Compressor Technique | 2 | 26 |
1 Annual revenues and number of employees at the time of acquisition.
2 Former distributor of Atlas Copco Group products. No revenues are disclosed for former Atlas Copco Group distributors.
All acquisitions were made through the purchase of 100% of shares and
voting rights or through the purchase of the net assets of the acquired
operations. The Group received control over the operations upon the date
of closing the acquisition. No equity instruments have been issued in connec-
tion with the acquisitions. All acquisitions have been accounted for using the
acquisition method.
The amounts presented in the following tables detail the recognized
amounts aggregated by business area, as the relative amounts of the individ-
ual acquisitions are not considered significant. The fair values related to
intangible assets other than goodwill are amortized over 5–15 years. For
more information about the valuation of contingent consideration, see note
26. The Group is in the process of reviewing the final values for certain of the
recently acquired businesses. No adjustments are expected to be material.
Adjustments related to the acquisitions made in 2022 are included in the
following tables.
Atlas Copco Group 2023 94
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2. Acquisitions, continued
| The following summarizes the acquisitions during 2023 and 2022, continued | ||||||
| Number of | ||||||
Acquisition date | Country | Business area | Revenues 1 | employees1 | ||
2022 | Jul. 18 | Ceres Technologies, Inc. | U.S.A. | Vacuum Technique | 351 | 185 |
2022 | Jul. 8 | Les pompes à vide TECHNI-V-AC inc. | Canada | Vacuum Technique | 2 | 10 |
2022 | Jul. 5 | FITEC S.A.S. | France | Compressor Technique | 2 | 8 |
2022 | Jul. 4 | National Vacuum Equipment Inc. | U.S.A. | Vacuum Technique | 223 | 100 |
2022 | Jul. 4 | Bireme Group | Singapore | Compressor Technique | 2 | 20 |
2022 | Jun. 13 | Qolibri Inc. | U.S.A. | Vacuum Technique | 0.6 | 4 |
2022 | Jun. 8 | Associated Compressor Engineers Ltd (ACE) | United Kingdom | Compressor Technique | 2 | 12 |
2022 | Jun. 2 | Tekser Endüstriyel Cihazlar Sanayi ve Ticaret A.Ş (Tekser) | Türkiye | Vacuum Technique | 2 | 8 |
2022 | Jun. 1 | CAS Products Ltd (CAS) | United Kingdom | Compressor Technique | 2 | 12 |
2022 | Apr. 5 | Pumpenfabrik Wangen GmbH | Germany | Power Technique | 466 | 265 |
2022 | Mar. 2 | SCB S.r.l. | Italy | Compressor Technique | 51 | 16 |
2022 | Jan. 24 | Soft2tec GmbH | Germany | Industrial Technique | 20 | 38 |
2022 | Jan. 21 | HHV Pumps Pvt. Ltd | India | Vacuum Technique | 53 | 151 |
1 Annual revenues and number of employees at the time of acquisition.
2 Former distributor of Atlas Copco Group products. No revenues are disclosed for former Atlas Copco Group distributors.
Compressor Technique | Recognized values | |
2023 | 2022 | |
Intangible assets | 322 | 996 |
Property, plant and equipment 1 | 19 | 180 |
Other assets | 91 | 602 |
Cash and cash equivalents | 44 | 148 |
Interest-bearing liabilities and borrowings | –14 | –205 |
Other liabilities and provisions | –169 | –549 |
Net identifiable assets | 293 | 1 172 |
Goodwill | 159 | 814 |
Total consideration | 452 | 1 986 |
Deferred consideration | 50 | –65 |
Cash and cash equivalents acquired | –44 | –148 |
Net cash outflow | 458 | 1 773 |
1 Includes right-of-use assets.
In January, the Compressor Technique business area acquired the operating
assets of MedCore Services Inc. The company is based in Canada and ser-
vices piped medical gas equipment, including medical air systems, vacuum
systems, and pipeline equipment. The acquisition will enable Atlas Copco
Group to further strengthen its position as a leading service supplier of med-
ical gas solutions in this key region in Canada. Intangible assets of 11 were
recorded on the purchase.
In March, the operating assets of FS Medical Technology Business (FS
Medical), a USA based leading medical and laboratory gas services company,
were acquired. This acquisition will complement Atlas Copco Group´s exist-
ing support and service footprint in the West coast region. Intangible assets
of 51 were recorded on the purchase.
In October, William G Frank Medical Gas Testing and Consulting, LLC, a
service and inspection supplier for medical gas systems and Medical Gas Cre-
dentialing LLC, both based in USA, were acquired. The acquisition will enable
Atlas Copco Group to further strengthen the position as a leading services
supplier of medical gas solutions. Intangible assets of 38 were recorded on
the purchase.
In addition, the business area acquired five distributors during the year;
the compressed air business of Asven S.R.L., based in Argentina, C.P. Service
SRL based in Italy, Maziak Compressor Services Ltd. in UK, ACJ, s.r.o. based in
Slovakia and Hamamcıoğlu Makina (HAMAK) in Türkiye. The acquisitions are
expected to increase Atlas Copco Group’s presence in their respective
markets. Intangible assets of 213 and goodwill of 55 were recorded on the
purchase. The goodwill is not deductible for tax purposes.
Atlas Copco Group 2023 95
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2. Acquisitions, continued
Vacuum Technique | Recognized values | |
2023 | 2022 | |
Intangible assets | 420 | 848 |
Property, plant and equipment 1 | 175 | 167 |
Other assets | 263 | 491 |
Cash and cash equivalents | – | 27 |
Interest-bearing liabilities and borrowings | –195 | –124 |
Other liabilities and provisions | –171 | –301 |
Net identifiable assets | 492 | 1 108 |
Goodwill | 466 | 929 |
Total consideration | 958 | 2 037 |
Deferred consideration | –17 | –204 |
Cash and cash equivalents acquired | – | –27 |
Net cash outflow | 941 | 1 806 |
1 Includes right-of-use assets.
In February, the Vacuum Technique business area completed the acquisition
of CVS Engineering GmbH, a German manufacturer of industrial vacuum
pumps and blowers for mobile use on tanker trucks and other types of trans-
port. The acquisition will add to Atlas Copco Group’s mobile vacuum solu-
tions portfolio, allowing the Group to expand further in this market and to
increase it's footprint in Europe. Intangible assets of 167 and goodwill of
235 were recorded on the purchase. The goodwill is not deductible for tax
purposes.
In April, acquisition of Trillium US Inc., a USA based company, was com-
pleted. The company provides vacuum pump services and it also has a small
manufacturing business focused on piston and cryogenic pumps. This acqui-
sition will enhance Atlas Copco Group’s support capabilities for semiconduc-
tor and general vacuum customers in the USA and it will expand the Group’s
service offering to semiconductor dry pump customers, as well as increase
Atlas Copco Group’s general vacuum service footprint. Intangible assets of
60 and goodwill of 62 were recorded on the purchase. The goodwill is
deductible for tax purposes.
Additionally in April, the acquisition of the assets of Shandong Bozhong
Vacuum Technology Co., Ltd, a Chines company that develops and manufac-
tures liquid ring vacuum pumps and systems, was completed. Shandong
Bozhong Vacuum Technology is an experienced manufacturing and machin-
ing company, and this acquisition adds a company with good reputation for
their high-quality standards and aligns with Atlas Copco Group’s local-for-
local strategy. Intangible assets of 119 and goodwill of 110 were recorded on
the purchase. The goodwill is not deductible for tax purposes.
In addition, the business area acquired two distributors during the year.
The assets of James E. Watson & Co. based in US, and the cryopump service
and distribution business of ZEUS Co.,Ltd in South Korea were acquired. The
acquisitions are expected to increase Atlas Copco Group’s presence in their
respective markets. In total, intangible assets of 72 and goodwill of 60 were
recorded on the purchase. The goodwill is deductible for tax purposes.
Industrial Technique | Recognized values | |
2023 | 2022 | |
Intangible assets | 34 | 30 |
Property, plant and equipment 1 | 1 | 2 |
Other assets | 15 | –426 |
Cash and cash equivalents | 2 | 6 |
Interest-bearing liabilities and borrowings | –21 | –11 |
Other liabilities and provisions | –22 | 85 |
Net identifiable assets | 9 | –314 |
Goodwill | 71 | 417 |
Total consideration | 80 | 103 |
Deferred consideration | 23 | –35 |
Cash and cash equivalents acquired | –2 | –6 |
Net cash outflow | 101 | 62 |
1 Includes right-of-use assets.
In July, the Industrial Technique business area acquired Extend3D GmbH, a
German company that develops and produces augmented reality worker
guidance for industry customers, using laser and video projection. This
acquisition will enhance Atlas Copco Group’s offering in process and quality
control by leveraging a diverse portfolio of augmented reality products
designed specifically for assembly operations with high complexity and high
demand on quality. Intangible assets of 34 and goodwill of 71 were recorded
on the purchase. The goodwill is not deductible for tax purposes.
Power Technique | Recognized values | |
2023 | 2022 | |
Intangible assets | 975 | 1 903 |
Property, plant and equipment 1 | 1 139 | 822 |
Other assets | 553 | 1 576 |
Cash and cash equivalents | 155 | 1 047 |
Interest-bearing liabilities and borrowings | –818 | –1 522 |
Other liabilities and provisions | –575 | –1 463 |
Net identifiable assets | 1 429 | 2 363 |
Non-controlling interests | – | –44 |
Goodwill | 1 553 | 5 678 |
Total consideration | 2 982 | 7 997 |
Deferred consideration | –13 | – |
Cash and cash equivalents acquired | –155 | –1 047 |
Net cash outflow | 2 814 | 6 950 |
1 Includes right-of-use assets.
In June, the Power Technique business area acquired National Pump &
Energy (NPE), a business that provides dewatering, environmental services
and water treatment solutions in Australia and New Zealand. NPE has strong
market recognition and great expertise. The acquisition will strengthen Atlas
Copco Group’s presence in dewatering and water treatment, which is an area
where needs are increasing due to climate change and more frequent flood-
ing events. This is driving the need for fast response and specialty dewater-
ing solutions. Intangible assets of 809 and goodwill of 1 154 were recorded
on the purchase. The goodwill is not deductible for tax purposes.
In August, Climorent, a Spanish provider of specialty rental solutions for
industrial cooling applications, was acquired. Climate change is fueling
increased demand for efficient cooling solutions in industrial and other appli-
cations and Climorent has a strong local footprint within rental industrial
cooling solutions and has potential for further growth. Intangible assets of
10 and goodwill of 24 were recorded on the purchase. The goodwill is not
deductible for tax purposes.
In December, Sykes Group Pty Ltd (Sykes) was acquired. Sykes is an Aus-
tralian global manufacturer of dewatering pumps, predominantly used for
transferring water with solids and abrasive nature within the mining and
wastewater sectors. Sykes’ products are well known in the industry as
high-quality, heavy-duty products for harsh and demanding environments,
and they manufacture products that complement Atlas Copco Group’s
current offering well. Intangible assets of 156 and goodwill of 375 were
recorded on the purchase. The goodwill is not deductible for tax purposes.
Atlas Copco Group 2023 96
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2. Acquisitions, continued
| Total fair value of | Group recognized values | |
| acquired assets and liabilities | ||
2023 | 2022 | |
Intangible assets | 1 751 | 3 777 |
Property, plant and equipment 1 | 1 334 | 1 171 |
Other non-current assets | 4 | 9 |
Inventories | 424 | 1 140 |
Trade receivables 2 | 467 | 918 |
Other current assets | 27 | 176 |
Cash and cash equivalents | 201 | 1 228 |
Interest-bearing liabilities and borrowings | –1 048 | –1 862 |
Other liabilities and provisions | –581 | –1 571 |
Deferred tax assets/liabilities, net | –356 | –657 |
Net identifiable assets | 2 223 | 4 329 |
Non-controlling interests | – | –44 |
Goodwill | 2 249 | 7 838 |
Total consideration | 4 472 | 12 123 |
Deferred consideration | 43 | –304 |
Cash and cash equivalents acquired | –201 | –1 228 |
Net cash outflow | 4 314 | 10 591 |
1 Includes right-of-use assets.
2 The gross amount is 477 (1 017) of which 10 (99) is expected to be uncollectible.
The goodwill recognized on acquisitions is primarily related to assets that
cannot be fully recognized on the balance sheet. These include, but are not
limited to, future growth, market presence, additional customers, technology
progress, personnel etc. Please also see information on the previous pages.
The total consideration for all acquisitions was 4 472 (12 123). Deferred
consideration includes both deferred consideration not yet paid for acquisi-
tions made in 2023 and settlement of deferred consideration for acquisitions
made in prior years. For all acquisitions, the net cash outflow totaled 4 314
(10 591) after deducting cash and cash equivalents acquired of 201 (1 228).
Acquisition-related costs amounted to 48 (81) and were included in the
“Administrative expenses”. Costs related to acquisitions finalized in 2023
were included in the income statements for 2023 and 2022.
| Contribution from businesses | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Group | |||||
| acquired in 2023 and 2022 by | ||||||||||
| business area | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Contribution from date of control | ||||||||||
Revenues | 206 | 465 | 695 | 551 | 15 | 66 | 971 | 1 944 | 1 887 | 3 026 |
Operating profit | –4 | –11 | 9 | 49 | –4 | 5 | 176 | 232 | 177 | 275 |
| Profit for the year | 95 | 205 | ||||||||
| Contribution if the acquisition | ||||||||||
| had occurred on Jan. 1 | ||||||||||
| Revenues | 379 | 1 660 | 899 | 1 275 | 30 | 71 | 2 036 | 3 877 | 3 344 | 6 883 |
| Operating profit | –7 | 4 | 12 | 116 | –9 | 6 | 311 | 553 | 307 | 679 |
| Profit for the year | 213 | 444 | ||||||||
Atlas Copco Group 2023 97
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2023 | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Common Group functions | Eliminations | Group |
Revenues from external customers | 74 787 | 42 781 | 28 375 | 26 721 | – | – | 172 664 |
Inter-segment revenues | 765 | 31 | 78 | 178 | – | –1 052 | – |
Total revenues | 75 552 | 42 812 | 28 453 | 26 899 | – | –1 052 | 172 664 |
– of which equipment | 59% | 77% | 73% | 57% | – | – | 65% |
– of which service 1 | 41% | 23% | 27% | 43% | – | – | 35% |
Operating profit | 18 488 | 9 607 | 6 183 | 5 191 | –2 362 | –16 | 37 091 |
– of which share of profit in associated companies and joint ventures | – | 29 | 12 | – | – | – | 41 |
Net financial items | –649 | ||||||
Income tax expense | –8 390 | ||||||
Profit for the year | 28 052 | ||||||
| Non-cash expenses | |||||||
Depreciation/amortization | 2 172 | 2 051 | 1 507 | 1 722 | 273 | –34 | 7 691 |
Impairment | 18 | 30 | 12 | 28 | – | – | 88 |
Other non-cash expenses | 35 | 20 | 117 | –69 | 821 | – | 924 |
Segment assets | 47 984 | 48 726 | 34 768 | 31 414 | 3 269 | –1 089 | 165 072 |
– of which goodwill | 7 078 | 14 542 | 14 713 | 9 028 | – | – | 45 361 |
Investments in associated companies and joint ventures | – | 719 | 135 | – | – | – | 854 |
Unallocated assets | 16 758 | ||||||
Total assets | 47 984 | 49 445 | 34 903 | 31 414 | 3 269 | –1 089 | 182 684 |
Segment liabilities | 25 937 | 8 241 | 6 781 | 6 012 | 3 589 | –952 | 49 608 |
Unallocated liabilities | 41 576 | ||||||
Total liabilities | 25 937 | 8 241 | 6 781 | 6 012 | 3 589 | –952 | 91 184 |
| Capital expenditures | |||||||
Property, plant and equipment | 2 424 | 2 380 | 970 | 2 436 | 399 | –57 | 8 552 |
– of which right-of-use assets | 1 333 | 638 | 232 | 347 | 199 | – | 2 749 |
Intangible assets | 183 | 457 | 527 | 178 | 119 | – | 1 464 |
Total capital expenditures | 2 607 | 2 837 | 1 497 | 2 614 | 518 | –57 | 10 016 |
Goodwill acquired | 159 | 466 | 71 | 1 553 | – | – | 2 249 |
2023 | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Common Group functions | Eliminations | Group |
Items affecting comparability in Operating profit | – | – | – | – | –1 126 1 | – | –1 126 1 |
1 Refers to a change in provision for share-related long-term incentive programs and a provision for a commercial dispute originating from an agreement dating back to before the current Group structure and the split of the Group in 2018.
Atlas Copco Group 2023 98
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
3. Segment information, continued
2022 | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Common Group functions | Eliminations | Group |
Items affecting comparability in Operating profit | – | – | – | – | 151 1 | – | 1511 |
1 Refers to a change in provision for share-related long-term incentive programs.
Atlas Copco Group 2023 99
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
3. Segment information, continued
By geographic area/country | Revenues | Non-current assets | |||
2023 | 2022 | 2023 | 2022 | ||
North America | U.S.A. | 39 562 | 31 294 | 16 255 | 16 323 |
Other countries | 6 458 | 4 744 | 2 376 | 2 465 | |
46 020 | 36 038 | 18 631 | 18 788 | ||
South America | Brazil | 4 570 | 3 665 | 899 | 663 |
Other countries | 2 437 | 2 197 | 256 | 188 | |
7 007 | 5 862 | 1 155 | 851 | ||
Europe | Belgium | 1 636 | 1 257 | 3 539 | 3 058 |
France | 5 208 | 3 800 | 701 | 693 | |
Germany | 10 702 | 8 076 | 31 319 | 31 462 | |
Italy | 4 445 | 3 560 | 2 360 | 2 303 | |
Sweden | 2 288 | 1 898 | 1 771 | 1 657 | |
United Kingdom | 4 334 | 3 255 | 14 837 | 15 507 | |
Other countries | 19 993 | 16 709 | 4 481 | 4 214 | |
48 606 | 38 555 | 59 008 | 58 894 | ||
Africa/Middle East | South Africa | 946 | 844 | 204 | 137 |
Other countries | 7 087 | 5 524 | 466 | 440 | |
8 033 | 6 368 | 670 | 577 | ||
Asia/Oceania | Australia | 2 859 | 1 602 | 3 655 | 175 |
Greater China | 35 810 | 31 914 | 3 905 | 3 493 | |
India | 5 976 | 4 883 | 525 | 507 | |
Japan | 3 321 | 2 793 | 634 | 608 | |
South Korea | 7 937 | 6 816 | 3 164 | 2 806 | |
Other countries | 7 095 | 6 494 | 620 | 529 | |
62 998 | 54 502 | 12 503 | 8 118 | ||
Total | 172 664 | 141 325 | 91 967 | 87 228 | |
Compressor Technique, % | Vacuum Technique, % | Industrial Technique, % | Power Technique, % | Group, % | ||||||
| Geographic distribution | ||||||||||
| 2023 | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues |
North America | 26 | 25 | 26 | 25 | 32 | 32 | 29 | 28 | 27 | 27 |
South America | 6 | 6 | – | – | 3 | 3 | 7 | 7 | 4 | 4 |
Europe | 29 | 31 | 15 | 16 | 34 | 34 | 30 | 34 | 27 | 28 |
Africa/Middle East | 6 | 7 | 1 | 1 | 1 | 1 | 8 | 9 | 5 | 5 |
Asia/Oceania | 33 | 31 | 58 | 58 | 30 | 30 | 26 | 22 | 37 | 36 |
| 2022 | ||||||||||
North America | 25 | 23 | 24 | 23 | 32 | 32 | 32 | 28 | 27 | 25 |
South America | 5 | 6 | – | – | 2 | 2 | 7 | 8 | 4 | 4 |
Europe | 29 | 31 | 16 | 15 | 33 | 33 | 36 | 37 | 27 | 27 |
Africa/Middle East | 7 | 7 | 1 | 1 | 1 | 2 | 8 | 9 | 4 | 5 |
Asia/Oceania | 34 | 33 | 59 | 61 | 32 | 31 | 17 | 18 | 38 | 39 |
Atlas Copco Group 2023 100
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
3. Segment information, continued
| Revenues | 2023 | 2022 | ||||||
1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | |
Compressor Technique | 17 632 | 18 600 | 19 493 | 19 827 | 13 305 | 14 291 | 16 377 | 17 085 |
– of which external | 17 466 | 18 407 | 19 300 | 19 614 | 13 169 | 14 174 | 16 244 | 16 957 |
– of which internal | 166 | 193 | 193 | 213 | 136 | 117 | 133 | 128 |
Vacuum Technique | 9 989 | 10 911 | 10 802 | 11 110 | 8 179 | 9 335 | 10 781 | 10 646 |
– of which external | 9 979 | 10 906 | 10 795 | 11 101 | 8 173 | 9 332 | 10 773 | 10 639 |
– of which internal | 10 | 5 | 7 | 9 | 6 | 3 | 8 | 7 |
Industrial Technique | 6 492 | 7 280 | 7 306 | 7 375 | 5 083 | 5 405 | 5 911 | 6 608 |
– of which external | 6 469 | 7 260 | 7 290 | 7 356 | 5 072 | 5 396 | 5 900 | 6 595 |
– of which internal | 23 | 20 | 16 | 19 | 11 | 9 | 11 | 13 |
Power Technique | 5 996 | 6 828 | 7 142 | 6 933 | 3 702 | 4 247 | 5 207 | 5 897 |
– of which external | 5 947 | 6 791 | 7 100 | 6 883 | 3 672 | 4 209 | 5 157 | 5 863 |
– of which internal | 49 | 37 | 42 | 50 | 30 | 38 | 50 | 34 |
| Common Group | ||||||||
| functions/eliminations | –248 | –255 | –258 | –291 | –183 | –167 | –202 | –182 |
Total | 39 861 | 43 364 | 44 485 | 44 954 | 30 086 | 33 111 | 38 074 | 40 054 |
Quarterly data, Operating profit by business area
| Operating profit | 2023 | 2022 | ||||||
1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | |
Compressor Technique | 4 245 | 4 472 | 4 856 | 4 915 | 3 170 | 3 266 | 3 963 | 4 026 |
in % of revenues | 24.1% | 24.0% | 24.9% | 24.8% | 23.8% | 22.9% | 24.2% | 23.6% |
Vacuum Technique | 2 268 | 2 504 | 2 465 | 2 370 | 1 859 | 2 123 | 2 484 | 1 941 |
in % of revenues | 22.7% | 22.9% | 22.8% | 21.3% | 22.7% | 22.7% | 23.0% | 18.2% |
Industrial Technique | 1 371 | 1 585 | 1 647 | 1 580 | 1 065 | 1 077 | 1 267 | 1 188 |
in % of revenues | 21.1% | 21.8% | 22.5% | 21.4% | 21.0% | 19.9% | 21.4% | 18.0% |
Power Technique | 1 145 | 1 294 | 1 429 | 1 323 | 664 | 807 | 983 | 1 071 |
in % of revenues | 19.1% | 19.0% | 20.0% | 19.1% | 17.9% | 19.0% | 18.9% | 18.2% |
| Common Group | ||||||||
| functions/eliminations | –330 | –666 | –280 | –1 102 | –9 | 6 | –319 | –416 |
Operating profit | 8 699 | 9 189 | 10 117 | 9 086 | 6 749 | 7 279 | 8 378 | 7 810 |
in % of revenues | 21.8% | 21.2% | 22.7% | 20.2% | 22.4% | 22.0% | 22.0% | 19.5% |
Net financial items | –44 | –163 | –189 | –253 | –78 | 26 | 70 | –190 |
Profit before tax | 8 655 | 9 026 | 9 928 | 8 833 | 6 671 | 7 305 | 8 448 | 7 620 |
in % of revenues | 21.7% | 20.8% | 22.3% | 19.6% | 22.2% | 22.1% | 22.2% | 19.0% |
| Average number of employees | 2023 | 2022 | ||||
Women | Men | Total | Women | Men | Total | |
| Parent Company | ||||||
Sweden | 78 | 41 | 119 | 67 | 43 | 110 |
| Subsidiaries | ||||||
North America | 1 769 | 6 413 | 8 182 | 1 549 | 5 641 | 7 190 |
South America | 560 | 1 684 | 2 244 | 492 | 1 582 | 2 074 |
Europe | 4 997 | 17 612 | 22 609 | 4 401 | 16 115 | 20 516 |
– of which Sweden | 347 | 1 110 | 1 457 | 308 | 1 056 | 1 364 |
Africa/Middle East | 255 | 1 101 | 1 356 | 230 | 970 | 1 200 |
Asia/Oceania | 3 499 | 13 101 | 16 600 | 3 016 | 11 675 | 14 691 |
Total in subsidiaries | 11 080 | 39 911 | 50 991 | 9 688 | 35 983 | 45 671 |
Total | 11 158 | 39 952 | 51 110 | 9 755 | 36 026 | 45 781 |
Females in the Board of Directors and Group Management, % | Dec. 31, 2023 | Dec. 31, 2022 |
| Parent Company | ||
Board of Directors 1 | 33 | 22 |
Group Management | 33 | 33 |
Remuneration and other benefits | Group | |
2023 | 2022 | |
Salaries and other remuneration | 33 708 | 27 201 |
Contractual pension benefits | 1 798 | 1 547 |
Other social costs | 5 970 | 4 832 |
Total | 41 476 | 33 580 |
Pension obligations to Board members and Group Management 1 | 4 | 4 |
Atlas Copco Group 2023 101
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
4. Employees and personnel expenses, continued
| 2023 | Value of synthetic | Number of synthetic | Total fees incl. value of | Effect of vesting and | Total expense | |||
Remuneration and other benefits to the Board, KSEK | Fee | shares at grant date | shares at grant date | Other fees 1 | synthetic shares at grant date | change in stock price 2 | recognized 3 | |
| Chair: | ||||||||
Hans Stråberg | 1 588 | 1 600 | 10 817 | 463 | 3 651 | 3 199 | 6 850 | |
| Other members of the Board: | ||||||||
Jumana Al-Sibai 4 | 388 | 518 | 3 499 | – | 906 | –62 | 844 | |
Staffan Bohman 5 | 125 | – | – | 50 | 175 | 672 | 847 | |
Johan Forssell | 513 | 518 | 3 499 | 224 | 1 255 | 1 022 | 2 277 | |
Heléne Mellquist | 513 | 518 | 3 499 | – | 1 031 | 321 | 1 352 | |
Anna Ohlsson-Leijon | 513 | 518 | 3 499 | 433 | 1 464 | 493 | 1 957 | |
Gordon Riske | 513 | 518 | 3 499 | 79 | 1 110 | 733 | 1 843 | |
Peter Wallenberg Jr | 513 | 518 | 3 499 | 104 | 1 135 | 1 022 | 2 157 | |
Other members of the Board previous year | – | – | – | – | – | 578 | 578 | |
Employee representatives (4) | 6 | 113 | – | – | – | 113 | – | 113 |
Total | 4 779 | 4 708 | 31 811 | 1 353 | 10 840 | 7 978 | 18 818 |
| 2022 | Value of synthetic | Number of synthetic | Total fees incl. value of | Effect of vesting and | Total expense | |||
Remuneration and other benefits to the Board, KSEK | Fee | shares at grant date | shares at grant date | Other fees 1 | synthetic shares at grant date | change in stock price 2 | recognized 3 | |
| Chair: | ||||||||
Hans Stråberg | 1 488 | 1 550 | 3 565 | 451 | 3 489 | –1 414 | 2 075 | |
| Other members of the Board: | ||||||||
Staffan Bohman | 581 | 500 | 1 150 | 251 | 1 332 | –370 | 962 | |
Tina Donikowski 4 | 206 | – | – | – | 206 | –298 | –92 | |
Johan Forssell | 478 | 500 | 1 150 | 218 | 1 196 | –451 | 745 | |
Heléne Mellquist 5 | 375 | 500 | 1 150 | – | 875 | –72 | 803 | |
Anna Ohlsson-Leijon | 478 | 500 | 1 150 | 346 | 1 324 | –34 | 1 290 | |
Gordon Riske | 478 | 500 | 1 150 | – | 978 | –153 | 825 | |
Peter Wallenberg Jr | 478 | 500 | 1 150 | 99 | 1 077 | –451 | 626 | |
Other members of the Board previous year | – | – | – | – | – | –298 | –298 | |
Employee representatives (4) | 6 | 86 | – | – | – | 86 | – | 86 |
Total | 4 648 | 4 550 | 10 465 | 1 365 | 10 563 | –3 541 | 7 022 |
Atlas Copco Group 2023 102
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
4. Employees and personnel expenses, continued
| 2023 | Total, excl. recognized costs | Recognized costs for | Total expense | ||||
Remuneration and other benefits to Group Management, KSEK | Base salary | Variable compensation 2 | Other benefits 3 | Pension fees | for share based payments | share based payments 4 | recognized |
| President and CEO | |||||||
Mats Rahmström 1 | 20 200 | 14 221 | 613 | 7 070 | 42 104 | 10 328 | 52 432 |
Other members of Group Management (8 positions) | 32 036 | 18 459 | 7 223 | 9 126 | 66 844 | 11 933 | 78 777 |
Total | 52 236 | 32 680 | 7 836 | 16 196 | 108 948 | 22 261 | 131 209 |
Total remuneration and other benefits to the Board and Group Management | 150 027 |
| 2022 | Total, excl. recognized costs | Recognized costs for | Total expense | ||||
Remuneration and other benefits to Group Management, KSEK | Base salary | Variable compensation 2 | Other benefits 3 | Pension fees | for share based payments | share based payments 4 | recognized |
| President and CEO | |||||||
Mats Rahmström 1 | 19 500 | 14 820 | 406 | 6 836 | 41 562 | 5 052 | 46 614 |
Other members of Group Management (8 positions) | 28 979 | 15 055 | 7 153 | 8 430 | 59 617 | 3 566 | 63 183 |
Total | 48 479 | 29 875 | 7 559 | 15 266 | 101 179 | 8 618 | 109 797 |
Total remuneration and other benefits to the Board and Group Management | 116 819 |
Atlas Copco Group 2023 103
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
4. Employees and personnel expenses, continued
| Stock options/matchning options as at Dec. 31, 2023 1 | ||
| Other members of | ||
Grant Year | President and CEO | Group Management |
2017 | – | 13 179 |
2018 | – | 183 128 |
2019 | – | 655 351 |
2020 | 18 242 | 16 402 |
2021 | 452 871 | 508 494 |
2022 | 457 184 | 509 076 |
2023 2 | 478 909 | 576 215 |
Total | 1 407 206 | 2 461 845 |
Atlas Copco Group 2023 104
FINANCIAL STATEMENTS – NOTES
| Introduction |
| This is Atlas Copco Group |
| The year in review |
| Financials |
| Atlas Copco Group |
| Consolidated income |
| statement |
Consolidated statement of comprehensive income |
| Consolidated balance sheet |
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
5. Remuneration to auditors
Audit fees and other services | 2023 | 2022 |
| Ernst & Young | ||
Audit fee | 108 | 87 |
Audit activities other than the audit assignment | 1 | – |
Other services, tax | 5 | 3 |
Other services, other Other audit firms | 2 | 1 |
Audit fee | 19 | 20 |
Total | 135 | 111 |
Audit fee refers to audit of the financial statements and the accounting
records. For the Parent Company, this also includes the administration of the
business by the Board of Directors and the President and CEO.
Tax services include mostly tax consultancy services.
Other services essentially comprise consultancy services, such as due dili-
gence services in connection with acquisitions, investigations and similar.
At the Annual General Meeting 2023, Ernst & Young was re-elected as
auditor for the Group up to and including the Annual General Meeting 2024.
Other operating income | 2023 | 2022 |
Commissions received | 28 | 16 |
Income from insurance operations | 146 | 138 |
Capital gain on asset held for sale | – | 2 |
Capital gain on sale of property, plant and equipment | 75 | 59 |
Other operating income | 295 | 321 |
Total | 544 | 536 |
Other operating expenses | 2023 | 2022 |
| Capital loss on sale of property, plant and | ||
| equipment | –33 | –35 |
Exchange-rate differences, net | –1 016 | –574 |
Other operating expenses | –833 1 | –145 |
Total | –1 882 | –754 |
6. Other operating income and expenses, continued
Financial income and expenses | 2023 | 2022 |
| Interest income: | ||
– cash and cash equivalents | 393 | 108 |
– derivatives | – | 165 |
| Capital gain: | ||
– other assets | 9 | 6 |
Change in fair value – other assets | 38 | 37 |
Foreign exchange gain, net | – | 27 |
Financial income | 440 | 343 |
| Interest expenses: | ||
– borrowings | –850 | –394 |
– derivatives | –23 | – |
– pension provisions, net | –27 | –30 |
– deferred considerations | –14 | –15 |
Change in fair value – other liabilities and borrowings | – | –22 |
Foreign exchange loss, net | –175 | – |
Impairment loss | – | –54 |
Financial expenses | –1 089 | –515 |
Financial expenses, net | –649 | –172 |
Income tax expense | 2023 | 2022 |
Current taxes | –9 334 | –7 262 |
Deferred taxes | 944 | 700 |
Total | –8 390 | –6 562 |
2023 | 2022 | |
Profit before tax | 36 442 | 30 044 |
Weighted average tax based on national rates | –8 557 | –6 927 |
in % | 23.5 | 23.1 |
| Tax effect of: | ||
– non-deductible expenses | –401 | –278 |
– withholding and other taxes on dividends | –498 | –349 |
– tax-exempt income | 1 064 | 893 |
| Adjustments from prior years: | ||
– current taxes | –103 | 146 |
– deferred taxes | 77 | –45 |
Effects of tax losses/credits utilized | 29 | 8 |
Change in tax rate, deferred tax | 19 | 10 |
Tax losses not recognized | –48 | 20 |
Other items | 28 | –40 |
Income tax expense | –8 390 | –6 562 |
Effective tax in % | 23.0 | 21.8 |
Atlas Copco Group 2023 105
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
8. Taxes, continued
Change in deferred taxes | 2023 | 2022 |
Opening balance net, Jan. 1 | –552 | –435 |
Business acquisitions | –356 | –657 |
Charges to profit for the year | 944 | 700 |
Tax on amounts recorded to other comprehensive income | –75 | –65 |
| Tax related to equity settled share-based | ||
| payment | 69 | – |
Translation differences | –63 | –95 |
Closing balance net, Dec. 31 | –33 | –552 |
Deferred tax assets and liabilities | 2023 | 2022 | ||||
Assets | Liabilities | Net balance | Assets | Liabilities | Net balance | |
Intangible assets | 779 | 5 248 | –4 469 | 595 | 5 195 | –4 600 |
Property, plant and equipment 1 | 304 | 1 368 | –1 064 | 250 | 1 115 | –865 |
Other financial assets | 22 | 145 | –123 | 43 | 227 | –184 |
Inventories | 2 762 | 40 | 2 722 | 2 525 | 37 | 2 488 |
Current receivables | 305 | 310 | –5 | 321 | 364 | –43 |
Operating liabilities | 984 | 24 | 960 | 979 | 29 | 950 |
Provisions | 534 | 17 | 517 | 340 | 10 | 330 |
Post-employment benefits | 557 | 23 | 534 | 509 | 24 | 485 |
Borrowings 1 | 988 | 14 | 974 | 1 140 | 21 | 1 119 |
Loss/credit carry-forwards | 516 | – | 516 | 194 | – | 194 |
Other items 2 | 4 | 599 | –595 | 22 | 448 | –426 |
Deferred tax assets/liabilities | 7 755 | 7 788 | –33 | 6 918 | 7 470 | –552 |
Netting of assets/liabilities | –5 521 | –5 521 | – | –4 725 | –4 725 | – |
Net deferred tax balances | 2 234 | 2 267 | –33 | 2 193 | 2 745 | –552 |
2023 | 2022 | |
Expires after 1–2 years | 6 | 82 |
Expires after 3–4 years | 1 | 31 |
Expires after 5–6 years | 4 | 12 |
No expiry date | 1 635 | 1 345 |
Total | 1 646 | 1 470 |
2023 | 2022 | |
Intangible assets | 453 | 249 |
Property, plant and equipment | –177 | –134 |
Other financial assets | 19 | 8 |
Inventories | 327 | 635 |
Current receivables | –28 | –72 |
Operating liabilities | 27 | 71 |
Provisions | 149 | –33 |
Post-employment benefits | –89 | –11 |
Borrowings | 91 | 115 |
Other items | –173 | –28 |
Changes due to temporary differences | 599 | 800 |
Loss/credit carry-forwards | 345 | –100 |
Charges to profit for the year | 944 | 700 |
Atlas Copco Group 2023 106
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 107
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
9. Other comprehensive income
Other comprehensive income for the year 2023 | 2022 | |||||
Before tax | Tax | After tax | Before tax | Tax | After tax | |
| Attributable to owners of the parent | ||||||
| Items that will not be reclassified to profit or loss | ||||||
| Remeasurements of defined benefit plans | –753 | 192 | –561 | 1 550 | –420 | 1 130 |
| Items that may be reclassified subsequently to profit or loss | ||||||
| Translation differences: | ||||||
| – on foreign operations | –4 713 | –13 | –4 726 | 8 112 | 174 | 8 286 |
Hedge of net investments in foreign operations | 148 | –31 | 117 | –1 328 | 273 | –1 055 |
| Cash flow hedges | 28 | –6 | 22 | 13 | –2 | 11 |
| Total other comprehensive income | –5 290 | 142 | –5 148 | 8 347 | 25 | 8 372 |
| Attributable to non-controlling interests | ||||||
Translation differences on foreign operations | –4 | – | –4 | – | – | – |
Total other comprehensive income | –5 294 | 142 | –5 152 | 8 347 | 25 | 8 372 |
10. Earnings per share
Amounts in SEK | Basic earnings per share | Diluted earnings per share | ||
2023 | 2022 | 2023 | 2022 | |
Earnings per share | 5.76 | 4.82 | 5.75 | 4.81 |
The calculation of earnings per share presented above is based on profits and number of shares as detailed below.
Profit for the year attributable to owners of the parent | 2023 | 2022 |
Profit for the year | 28 040 | 23 477 |
Average number of shares outstanding | 2023 | 2022 |
Basic weighted average number of shares outstanding | 4 871 364 070 | 4 868 350 241 |
Effect of employee stock options | 7 486 197 | 7 577 524 |
Diluted weighted average number of shares outstanding | 4 878 850 267 | 4 875 927 765 |
Potentially dilutive instruments
As of December 31, 2023, Atlas Copco Group had seven outstanding
employee stock option programs. For the 2020 program, no options were
issued as the EVA target for the Group was not met. The exercise price
including adjustment for remaining vesting costs for the 2021, 2022 and
2023 programs exceeded the average share price for series A shares, SEK
144.23 per share. These programs are therefore considered anti-dilutive and
not included in the calculation of diluted earnings per share. If the average
share price after adjustment with above, exceeds the strike price in the
future, these options will be dilutive, which is the case for the 2017, 2018 and
2019 programs.
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 108
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2023 | 2022 | |||
Trademarks | Goodwill | Trademarks | Goodwill | |
Compressor Technique | – | 7 078 | – | 7 132 |
Vacuum Technique | 2 897 | 14 542 | 3 008 | 14 683 |
Industrial Technique | – | 14 713 | – | 14 884 |
Power Technique | – | 9 028 | – | 7 600 |
Total | 2 897 | 45 361 | 3 008 | 44 299 |
2023 | 2022 | |||||
Internally generated | Acquired | Total | Internally generated | Acquired | Total | |
Cost of sales | 23 | 25 | 48 | 32 | 43 | 75 |
Marketing expenses | 23 | 1 446 | 1 469 | 20 | 1 131 | 1 151 |
Administrative expenses | 108 | 58 | 166 | 110 | 47 | 157 |
Research and development expenses | 868 | 748 | 1 616 | 670 | 624 | 1 294 |
Total | 1 022 | 2 277 | 3 299 | 832 | 1 845 | 2 677 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 109
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
11. Intangible assets, continued
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 110
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2023 | Buildings and land | Machinery and equipment | Construction in progress and advances | Total | Rental equipment |
| Cost | |||||
Opening balance, Jan. 1 | 8 350 | 16 300 | 2 418 | 27 068 | 7 287 |
Investments | 215 | 1 129 | 2 645 | 3 989 | 1 814 |
Business acquisitions | 50 | 103 | – | 153 | 907 |
Disposals | –96 | –558 | – | –654 | –449 |
Reclassifications | 727 | 1 476 | –2 167 | 36 | –27 |
Translation differences | –282 | –586 | –100 | –968 | –303 |
Closing balance, Dec. 31 | 8 964 | 17 864 | 2 796 | 29 624 | 9 229 |
| Depreciation and impairment losses | |||||
Opening balance, Jan. 1 | 3 375 | 10 968 | 5 | 14 348 | 4 598 |
Depreciation for the period | 335 | 1 600 | – | 1 935 | 897 |
Impairment charge for the period | 3 | 6 | – | 9 | – |
Disposals | –79 | –517 | – | –596 | –409 |
Reclassifications | –3 | 37 | – | 34 | –32 |
Translation differences | –102 | –362 | – | –464 | –170 |
Closing balance, Dec. 31 | 3 529 | 11 732 | 5 | 15 266 | 4 884 |
Carrying amounts at Jan. 1 | 4 975 | 5 332 | 2 413 | 12 720 | 2 689 |
Carrying amounts at Dec. 31 | 5 435 | 6 132 | 2 791 | 14 358 | 4 345 |
2022 | Buildings and land | Machinery and equipment | Construction in progress and advances | Total | Rental equipment |
| Cost | |||||
Opening balance, Jan. 1 | 6 757 | 13 184 | 1 204 | 21 145 | 5 961 |
Investments | 91 | 839 | 2 734 | 3 664 | 884 |
Business acquisitions | 501 | 302 | 5 | 808 | 13 |
Disposals | –75 | –499 | – | –574 | –314 |
Reclassifications | 431 | 1 275 | –1 668 | 38 | –21 |
Translation differences | 645 | 1 199 | 143 | 1 987 | 764 |
Closing balance, Dec. 31 | 8 350 | 16 300 | 2 418 | 27 068 | 7 287 |
| Depreciation and impairment losses | |||||
Opening balance, Jan. 1 | 2 842 | 9 307 | 5 | 12 154 | 3 619 |
Depreciation for the period | 278 | 1 283 | – | 1 561 | 775 |
Impairment charge for the period | – | – | – | – | 4 |
Disposals | –52 | –465 | – | –517 | –242 |
Reclassifications | 32 | 16 | – | 48 | –21 |
Translation differences | 275 | 827 | – | 1 102 | 463 |
Closing balance, Dec. 31 | 3 375 | 10 968 | 5 | 14 348 | 4 598 |
Carrying amounts at Jan. 1 | 3 915 | 3 877 | 1 199 | 8 991 | 2 342 |
Carrying amounts at Dec. 31 | 4 975 | 5 332 | 2 413 | 12 720 | 2 689 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 111
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Accumulated capital participation | 2023 | 2022 |
Opening balance, Jan. 1 | 939 | 931 |
Dividends | –34 | –40 |
Profit for the year after income tax | 41 | 29 |
Translation differences | –92 | 19 |
Closing balance, Dec. 31 | 854 | 939 |
| 2023 | ||||||||
| Summary of financial information for associated | Profit for | Group’s | Carrying | |||||
companies and joint ventures | Country | Assets 1 | Liabilities 1 | Equity 1 | Revenues 1 | the year 1 | share, % 2 | value Dec. 31 |
| Associated companies | ||||||||
Qingdao Qianshao Pneumatic Tool Manufacturing Tech Ltd. | China | 75 | 34 | 41 | 41 | 0 | 25 | 10 |
Reintube S.L. | Spain | 8 | 4 | 4 | 12 | 0 | 47 | 0 |
| Joint ventures | ||||||||
Toku-Hanbai Group | Japan | 449 | 199 | 250 | 1 019 | 25 | 50 | 125 |
Ulvac Cryogenics Inc. | Japan | 1 101 | 357 | 744 | 745 | 57 | 50 | 719 |
Total | 854 |
| 2022 | ||||||||
| Summary of financial information for associated | Profit for | Group’s | Carrying | |||||
companies and joint ventures | Country | Assets 1 | Liabilities 1 | Equity 1 | Revenues 1 | the year 1 | share, % 2 | value Dec. 31 |
| Associated companies | ||||||||
Qingdao Qianshao Pneumatic Tool Manufacturing Tech Ltd. | China | 73 | 29 | 44 | 46 | 1 | 25 | 11 |
Reintube S.L. | Spain | 9 | 4 | 5 | 13 | 1 | 47 | 0 |
| Joint ventures | ||||||||
Toku-Hanbai Group | Japan | 443 | 182 | 261 | 1 273 | 11 | 50 | 128 |
Ulvac Cryogenics Inc. | Japan | 1 237 | 415 | 822 | 718 | 48 | 50 | 800 |
Total | 939 |
2023 | 2022 | |
| Non-current | ||
Pension and other similar benefit assets (note 22) | 1 132 | 1 423 |
Financial assets at fair value through OCI | 1 | 1 |
Financial assets at fair value through profit or loss | 96 | 86 |
| Financial assets measured at amortized cost: | ||
– lease receivables | 72 | 67 |
– other financial receivables | 93 | 91 |
Closing balance, Dec. 31 | 1 394 | 1 668 |
| Current | ||
Financial assets at fair value through profit or loss | 329 | 591 |
| Financial assets measured at amortized cost: | ||
– lease receivables | 38 | 27 |
– other financial receivables | 598 | 271 |
Closing balance, Dec. 31 | 965 | 889 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 112
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
15. Inventories
2023 | 2022 | |
Raw materials | 5 020 | 5 260 |
Work in progress | 6 597 | 5 524 |
Semi-finished goods | 7 511 | 7 623 |
Finished goods | 10 155 | 8 812 |
Closing balance, Dec. 31 | 29 283 | 27 219 |
Provisions for obsolescence and other write-downs of inventories recorded
as cost of sales amounted to 908 (560). Reversals of write-downs which were
recognized in earnings totaled 25 (35). Previous write-downs have been
reversed as a result of improved market conditions in certain markets.
Inventories recognized as expense amounted to 72 189 (60 607).
Expected credit losses, trade | 2023 | 2022 |
Opening balance, Jan. 1 | 976 | 745 |
Business acquisitions and divestments | 10 | 99 |
Provisions recognized for potential losses | 467 | 367 |
Amounts used for established losses | –141 | –118 |
Release of unnecessary provisions | –193 | –191 |
Translation differences | –41 | 74 |
Closing balance, Dec. 31 | 1 078 | 976 |
2023 | 2022 | |
| Derivatives: | ||
– at fair value through profit or loss | 108 | 34 |
| Financial assets measured at amortized cost: | ||
– other receivables | 3 940 | 4 085 |
– contract assets | 5 699 | 4 738 |
Prepaid expenses | 1 294 | 1 174 |
Closing balance, Dec. 31 | 11 041 | 10 031 |
2023 | 2022 | |
Cash | 9 490 | 10 016 |
Cash equivalents | 1 397 | 1 238 |
Closing balance, Dec. 31 | 10 887 | 11 254 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 113
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
2023 | 2022 | |||||
Shares outstanding | A shares | B shares | Total | A shares | B shares | Total |
Opening balance, Jan. 1 | 3 357 576 384 | 1 560 876 032 | 4 918 452 416 | 839 394 096 | 390 219 008 | 1 229 613 104 |
Share split | – | – | – | 3 357 576 384 | 1 560 876 032 | 4 918 452 416 |
3 357 576 384 | 1 560 876 032 | 4 918 452 416 | 4 196 970 480 | 1 951 095 040 | 6 148 065 520 | |
Redemption of shares | – | – | – | –799 996 017 | –390 219 008 | –1 190 215 025 |
Redemption of shares held by Atlas Copco | – | – | – | –39 398 079 | – | –39 398 079 |
Total number of shares, Dec. 31 | 3 357 576 384 | 1 560 876 032 | 4 918 452 416 | 3 357 576 384 | 1 560 876 032 | 4 918 452 416 |
– of which held by Atlas Copco | –47 893 133 | – | –47 893 133 | –50 095 451 | – | –50 095 451 |
Total shares outstanding, Dec. 31 | 3 309 683 251 | 1 560 876 032 | 4 870 559 283 | 3 307 480 933 | 1 560 876 032 | 4 868 356 965 |
Number of shares held by Atlas Copco | Cost value affecting equity | |||||||
Repurchases/Divestment of shares | 2023 | AGM mandate 2023 Apr.–Dec. | AGM mandate 2022 Jan.–Mar. | 2022 | AGM mandate 2022 Apr.–Dec. | AGM mandate 2021 Jan.–Mar. | 2023 | 2022 |
Opening balance, Jan. 1 | 50 095 451 | 11 422 736 | 4 007 | 3 386 | ||||
Repurchase of A shares | 7 785 000 | 6 040 000 | 1 745 000 | 1 870 000 | 1 270 000 | 600 000 | 1 243 | 864 |
Divestment of A shares | –9 987 318 | –8 214 129 | –1 773 189 | –2 595 364 | –130 993 | –2 464 371 | –823 | –243 |
Share split | – | – | – | 39 398 079 | – | – | – | – |
Closing balance, Dec. 31 | 47 893 133 | 50 095 451 | 4 427 | 4 007 | ||||
Percentage of shares outstanding | 1.0% | 1.0% | ||||||
The 2023 AGM approved a mandate for the Board of Directors to repurchase
and sell series A shares on Nasdaq Stockholm in order to fulfill the obligations
under the performance stock option plan. The mandate is valid until the next
AGM and allows:
• The purchase of not more than 14 810 000 series A shares, whereof a maxi-
mum 10 450 000 may be transferred to personnel stock option holders
under the performance stock option plan 2023.
• The purchase of not more than 60 000 series A shares, later to be sold on
the market in connection with payment to board members who have opted
to receive synthetic shares as part of their board fee.
• The sale of not more than 60 000 series A shares to cover costs related to
previously issued synthetic shares to board members.
• The sale of maximum 33 000 000 series A shares in order to cover the obliga-
tions under the performance stock option plans 2017, 2018, 2019 and 2020.
The 2022 AGM approved a mandate for the Board of Directors to repurchase
and sell series A shares on Nasdaq Stockholm in order to fulfill the obligations
under the performance stock option plan. The mandate is valid until the next
AGM and allowed:
• The purchase of not more than 3 000 000 series A shares, whereof a maxi-
mum 2 400 000 may be transferred to personnel stock option holders
under the performance stock option plan 2022.
• The purchase of not more than 15 000 series A shares, later to be sold on
the market in connection with payment to board members who have opted
to receive synthetic shares as part of their board fee.
• The sale of not more than 15 000 series A shares to cover costs related to
previously issued synthetic shares to board members.
Retained earnings including reserve for fair value | 145 070 388 816 |
Profit for the year | 11 373 879 363 |
| 156 444 268 179 | |
| The Board of Directors proposes that these earnings | |
| be appropriated as follows: | |
To the shareholders, a dividend of SEK 2.80 per share | 13 637 565 992 |
To be retained in the business | 142 806 702 187 |
Total | 156 444 268 179 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 114
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
20. Borrowings
2023 | 2022 | |||||
| Repurchased | Carrying | Fair | Carrying | Fair | ||
| Maturity | nominal amount | amount | value | amount | value | |
| Non-current | ||||||
Medium Term Note Program MEUR 500 | 2023 | MEUR 314 | – | – | 3 497 | 3 500 |
Medium Term Note Program MEUR 500 | 2026 | 5 523 | 5 215 | 5 568 | 5 063 | |
Medium Term Note Program MEUR 300 | 2029 | 3 299 | 2 848 | 3 324 | 2 656 | |
Medium Term Note Program MEUR 500 | 2032 | 5 473 | 4 571 | 5 513 | 4 316 | |
Bilateral borrowings NIB MEUR 200 | 2024 | MEUR 200 | – | – | 2 229 | 2 257 |
Bilateral borrowings EIB MEUR 200 | 2027 | 2 210 | 2 099 | 2 229 | 1 958 | |
Bilateral borrowings EIB MEUR 100 | 2028 | 1 105 | 1 009 | 1 114 | 959 | |
Bilateral borrowings EIB MEUR 415 | 2030 | 4 586 | 4 717 | – | – | |
Bilateral borrowings EIB MEUR 60 | 2030 | 663 | 684 | – | – | |
Bilateral borrowings NIB MEUR 183 | 2031 | 2 022 | 2 053 | – | – | |
Other bank loans | 881 | 850 | 283 | 282 | ||
| Less current portion of long-term | ||||||
| borrowings | –164 | –164 | –3 524 | –3 527 | ||
Total non-current bonds and loans | 25 598 | 23 882 | 20 233 | 17 464 | ||
Lease liabilities | 4 251 | 4 251 | 3 505 | 3 505 | ||
Other financial liabilities | 118 | 118 | 32 | 32 | ||
Total non-current borrowings | 29 967 | 28 251 | 23 770 | 21 001 | ||
| Current | ||||||
Current portion of long-term borrowings | 164 | 164 | 3 524 | 3 527 | ||
Short-term loans | 1 087 | 1 087 | 7 725 | 7 735 | ||
Lease liabilities | 1 491 | 1 491 | 1 314 | 1 314 | ||
Total current borrowings | 2 742 | 2 742 | 12 563 | 12 576 | ||
Closing balance, Dec. 31 | 32 709 | 30 993 | 36 333 | 33 577 | ||
The difference between carrying value and fair value relates to the measurement method as certain liabilities are
reported at amortized cost and not at fair value. Changes in interest rates and credit margins create the difference
between fair value and amortized cost. See additional information about the Group’s exposure to interest rate risk
and foreign currency risk in note 26.
Repaid borrowings during 2023 included the outstanding amount of MEUR 314 of a MEUR 500 public bond and
MEUR 200 loan from the Nordic Investment Bank (NIB).
New borrowings included a MEUR 475 long-term loan from the European Investment bank (EIB) and a MEUR 183
long-term loan of from the Nordic Investment Bank (NIB).
Short term loans include supply chain financing contracts with remaining payment terms exceeding 180 days.
Atlas Copco AB’s long-term and short-term debt is rated by Standard & Poor’s and Fitch with the long-/short-term
rating A+/A- and A+/F1+, respectively.
The Group’s credit facilities are specified in the table below.
Credit facilities | Nominal amount | Maturity | Utilized | |
| Commercial papers 1 | 2 | MSEK 10 000 | – | |
Credit-line | MEUR 640 | 2026 | – | |
Credit-line | MEUR 1 000 | 2026 | – | |
Equivalent in SEK | MSEK 28 124 | – |
1 Interest is based on market conditions at the time when the facility is utilized. Maturity is set when the facility is utilized.
2 The maximum amounts available under these programs total MSEK 10 000 (10 000).
The Group’s short-term and long-term borrowings are distributed among the currencies detailed in the table below.
2023 | 2022 | |||||
Currency | Local currency (millions) | MSEK | % | Local currency (millions) | MSEK | % |
EUR | 2 483 | 27 435 | 84 | 2 877 | 32 062 | 88 |
SEK | 641 | 641 | 2 | 620 | 620 | 2 |
USD | 151 | 1 508 | 5 | 110 | 1 153 | 3 |
Others | – | 3 125 | 9 | – | 2 498 | 7 |
Total | 32 709 | 100 | 36 333 | 100 |
The following table shows the maturity structure of the Group’s borrowings.
Maturity | Fixed | Floating 1 | Carrying amount | Fair value |
2024 | 887 | 1 855 | 2 742 | 2 746 |
2025 | 1 341 | – | 1 341 | 1 341 |
2026 | 6 543 | – | 6 543 | 6 235 |
2027 | 2 915 | – | 2 915 | 2 804 |
2028 | 1 511 | – | 1 511 | 1 415 |
2029 | 3 622 | – | 3 622 | 3 155 |
2030 | 324 | 5 249 | 5 573 | 5 725 |
2031 | 406 | 2 022 | 2 428 | 2 441 |
2032 and after | 6 034 | – | 6 034 | 5 131 |
Total | 23 583 | 9 126 | 32 709 | 30 993 |
1 Floating interest in the table corresponds to borrowings with fixings shorter or equal to six months.
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 115
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
20. Borrowings, continued
2023 | Cash changes | Non cash changes | ||||||||
| Reconciliation of liabilities from | Opening | Financing | Lease | Lease | Business acquisitions | Change in fair value | Change in fair value | Closing balance, | ||
| financing activities | balance, Jan. 1 | cash flows | additions | deductions | and divestments | through P/L | through equity | FX change | Reclassi fica tion | Dec. 31 |
| Non-current | ||||||||||
Non-current bonds and loans | 20 233 | 5 141 | – | – | 482 | 10 | –115 | –93 | –60 | 25 598 |
Lease liabilities | 3 505 | – | 1 539 | –99 | 239 | 57 | – | –150 | –840 | 4 251 |
Other financial liabilities | 32 | –2 | – | – | 108 | – | – | –5 | –15 | 118 |
Total non-current liabilities | 23 770 | 5 139 | 1 539 | –99 | 829 | 67 | –115 | –248 | –915 | 29 967 |
| Current | ||||||||||
Current portion of long-term borrowings | 3 524 | –3 503 | – | – | 150 | –22 | –33 | –6 | 54 | 164 |
Short-term loans | 7 725 | –6 864 | – | – | 53 | 4 | – | 116 | 21 | 1 055 |
Lease liabilities | 1 314 | –1 916 1 | 1 206 | –65 | 46 | 114 | – | –48 | 840 | 1 491 |
Total current liabilities | 12 563 | –12 283 | 1 206 | –65 | 249 | 96 | –33 | 62 | 915 | 2 710 |
Total | 36 333 | –7 144 | 2 745 | –164 | 1 078 | 163 | –148 | –186 | – | 32 677 |
2022 | Cash changes | Non cash changes | ||||||||
| Reconciliation of liabilities from | Opening | Financing | Lease | Lease | Business acquisitions | Change in fair value | Change in fair value | Closing balance, | ||
| financing activities | balance, Jan. 1 | cash flows | additions | deductions | and divestments | through P/L | through equity | FX change | Reclassi fica tion | Dec. 31 |
| Non-current | ||||||||||
Non-current bonds and loans | 18 542 | 3 409 | – | – | 27 | 14 | 587 | 541 | –2 887 | 20 233 |
Lease liabilities | 2 328 | – | 1 397 | –35 | 252 | 28 | – | 223 | –688 | 3 505 |
Other financial liabilities | 23 | –667 | – | – | 648 | 2 | – | 20 | 6 | 32 |
Total non-current liabilities | 20 893 | 2 742 | 1 397 | –35 | 927 | 44 | 587 | 784 | –3 569 | 23 770 |
| Current | ||||||||||
Current portion of long-term borrowings | 1 045 | –1 118 | – | – | 9 | – | 700 | 2 | 2 886 | 3 524 |
Short-term loans | 1 915 | 4 616 | – | – | 762 | – | – | 430 | 2 | 7 725 |
Lease liabilities | 1 021 | –1 469 1 | 883 | –72 | 117 | 56 | – | 97 | 681 | 1 314 |
Total current liabilities | 3 981 | 2 029 | 883 | –72 | 888 | 56 | 700 | 529 | 3 569 | 12 563 |
Total | 24 874 | 4 771 | 2 280 | –107 | 1 815 | 100 | 1 287 | 1 313 | – | 36 333 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 116
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Right-of-use assets, 2023 | Buildings and land | Machinery and equipment | Rental equipment | Total |
| Cost | ||||
Opening balance, Jan. 1 | 6 109 | 2 086 | 13 | 8 208 |
Additions | 1 773 | 975 | 1 | 2 749 |
Business acquisitions | 262 | 12 | – | 274 |
Deductions | –295 | –484 | –5 | –784 |
Reclassifications | –15 | –16 | – | –31 |
Translation differences | –271 | –77 | 1 | –347 |
Closing balance, Dec. 31 | 7 563 | 2 496 | 10 | 10 069 |
| Depreciation and impairment losses | ||||
Opening balance, Jan. 1 | 2 398 | 1 050 | 8 | 3 456 |
Depreciation and impairment for the period | 1 036 | 600 | 3 | 1 639 |
Deductions | –201 | –407 | –5 | –613 |
Reclassifications | –17 | –11 | – | –28 |
Translation differences | –114 | –35 | 1 | –148 |
Closing balance, Dec. 31 | 3 102 | 1 197 | 7 | 4 306 |
Carrying amounts, Jan. 1 | 3 711 | 1 036 | 5 | 4 752 |
Carrying amounts, Dec. 31 | 4 461 | 1 299 | 3 | 5 763 |
Right-of-use assets, 2022 | Buildings and land | Machinery and equipment | Rental equipment | Total |
| Cost | ||||
Opening balance, Jan. 1 | 4 117 | 1 776 | 34 | 5 927 |
Additions | 1 679 | 599 | – | 2 278 |
Business acquisitions | 311 | 39 | – | 350 |
Deductions | –401 | –501 | –23 | –925 |
Reclassifications | –8 | – | – | –8 |
Translation differences | 411 | 173 | 2 | 586 |
Closing balance, Dec. 31 | 6 109 | 2 086 | 13 | 8 208 |
| Depreciation and impairment losses | ||||
Opening balance, Jan. 1 | 1 738 | 920 | 25 | 2 683 |
Depreciation and impairment for the period | 827 | 499 | 4 | 1 330 |
Deductions | –335 | –461 | –22 | –818 |
Reclassifications | –4 | – | – | –4 |
Translation differences | 172 | 92 | 1 | 265 |
Closing balance, Dec. 31 | 2 398 | 1 050 | 8 | 3 456 |
Carrying amounts, Jan. 1 | 2 379 | 856 | 9 | 3 244 |
Carrying amounts, Dec. 31 | 3 711 | 1 036 | 5 | 4 752 |
Leasing in income statement | 2023 | 2022 |
| Depreciation and impairment expense on | ||
| right-of-use assets | –1 639 | –1 330 |
Interest expense on lease liabilities | –171 | –85 |
Expense relating to leases of low value assets | –83 | –74 |
Expense relating to short-term leases | –191 | –155 |
Expense relating to variable lease payments | –19 | –24 |
Income from subleasing right-of-use assets | 8 | 6 |
| Gains or losses from sale and leaseback | ||
| transactions | –1 | – |
Total amount recognized in profit or loss | –2 096 | –1 662 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 117
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
21. Leases, continued
Group as a lessor
As a lessor, the Group has finance and operating lease contracts, see note 1 for further information.
Finance leases – lessor
Atlas Copco Group has equipment which is leased to customers under finance leases. Future payments to be received fall due as follows:
2023 | 2022 | |||
| Present value of | Present value of | |||
| Gross investment | minimum lease payments | Gross investment | minimum lease payments | |
Less than one year | 42 | 38 | 28 | 27 |
Between one and five years | 65 | 56 | 64 | 60 |
More than five years | 8 | 7 | 4 | 3 |
Total | 115 | 101 | 96 | 90 |
Unearned finance income | – | 5 | – | 2 |
Unguaranteed residual value | – | 9 | – | 4 |
Total | 115 | 115 | 96 | 96 |
Operating leases – lessor
Atlas Copco Group has equipment which is leased to customers under operating leases. Future payments for non-cancellable operating leasing contracts fall
due as follows:
2023 | 2022 | |
Less than one year | 160 | 117 |
Between one and five years | 349 | 222 |
More than five years | 67 | 52 |
Total | 576 | 391 |
Contingent rent recognized as income amounted to 0 (1).
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 118
2023 | 2022 | |
Financial assets (note 14) | –1 132 | –1 423 |
Post-employment benefits | 2 584 | 2 380 |
Other provisions (note 24) | 122 | 93 |
Closing balance, net | 1 574 | 1 050 |
| Post-employment benefits | Funded pension | ||||
| 2023 | plans | Unfunded pension plans | Other funded plans | Other unfunded plans | Total |
Present value of defined benefit obligations | 8 494 | 1 380 | 80 | 165 | 10 119 |
Fair value of plan assets | –8 583 | – | –92 | – | –8 675 |
Present value of net obligations | –89 | 1 380 | –12 | 165 | 1 444 |
Effect of asset ceiling | 101 | – | – | – | 101 |
Other long-term service obligations | – | – | 29 | – | 29 |
Net amount recognized in the balance sheet | 12 | 1 380 | 17 | 165 | 1 574 |
| Post-employment benefits | Funded pension | ||||
| 2022 | plans | Unfunded pension plans | Other funded plans | Other unfunded plans | Total |
Present value of defined benefit obligations | 8 017 | 1 428 | 71 | 151 | 9 667 |
Fair value of plan assets | –8 743 | – | –94 | – | –8 837 |
Present value of net obligations | –726 | 1 428 | –23 | 151 | 830 |
Effect of asset ceiling | 175 | – | – | – | 175 |
Other long-term service obligations | – | – | 45 | – | 45 |
Net amount recognized in the balance sheet | –551 | 1 428 | 22 | 151 | 1 050 |
Plan assets consist of the following: | 2023 | |||
Quoted market price | Unquoted market price | Total | 2022 | |
Debt instruments | 909 | 307 | 1 216 | 1 137 |
Equity instruments | 980 | 343 | 1 323 | 1 158 |
Property | 1 216 | 285 | 1 501 | 1 871 |
Assets held by insurance companies | 111 | 1 610 | 1 721 | 1 626 |
Cash | 485 | – | 485 | 396 |
Investment funds | 747 | 614 | 1 361 | 1 256 |
Derivatives | 486 | 20 | 506 | 681 |
Others | 151 | 411 | 562 | 712 |
Closing balance, Dec. 31 | 5 085 | 3 590 | 8 675 | 8 837 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 119
0
2 000
4 000
6 000
8 000
10 000
20222023
MSEK
Europe
North America
Rest of the world
0
2 000
4 000
6 000
8 000
10 000
20222023
MSEK
Europe
North America
Rest of the world
The defined benefit obligations for employee benefits consist
of plans in the following geographic areas:
22. Employee benefits, continued
Movements in plan assets | 2023 | 2022 |
Fair value of plan assets at Jan. 1 | 8 837 | 9 671 |
Business acquisitions | 10 | 24 |
Interest income | 352 | 139 |
Remeasurement – return on plan assets | –372 | –1 526 |
Settlements | –33 | – |
Employer contributions | 222 | 188 |
Plan members contributions | 20 | 16 |
| Administrative expenses | –17 | –15 |
Benefit paid by the plan | –336 | –274 |
Translation differences | –8 | 614 |
Fair value of plan assets, Dec. 31 | 8 675 | 8 837 |
| The plan assets are allocated among the | ||
following geographic areas: | 2023 | 2022 |
Europe | 7 540 | 7 664 |
North America | 559 | 615 |
Rest of the world | 576 | 558 |
Total | 8 675 | 8 837 |
Asset ceiling | 2023 | 2022 |
Asset ceiling at Jan. 1 | 175 | 25 |
Interests | 4 | 1 |
Remeasurements – asset ceiling | –85 | 135 |
Translation differences | 7 | 14 |
Asset ceiling, Dec. 31 | 101 | 175 |
| Movements in present value of the obligations | ||
for defined benefits | 2023 | 2022 |
Defined benefit obligations at Jan. 1 | 9 667 | 12 030 |
Current service cost | 308 | 374 |
Past service cost | 1 | –10 |
Interest expense (+) | 375 | 168 |
Actuarial gains (–)/ losses (+) arising from experience adjustments | 333 | 423 |
Actuarial gains (–)/ losses (+) arising from financial assumptions | 239 | –3 540 |
Actuarial gains (–)/ losses (+) arising from demographic assumptions | –85 | –99 |
Business acquisitions | 41 | 62 |
| Settlements | –37 | – |
Benefits paid from plan or company assets | –655 | –533 |
Translation differences | –68 | 792 |
Defined benefit obligations, Dec. 31 | 10 119 | 9 667 |
Expenses recognized in the income statement | 2023 | 2022 |
Current service cost | 308 | 374 |
Past service cost | 1 | –10 |
Net interest cost | 23 | 29 |
Employee contribution/ participant contribution | –20 | –16 |
Remeasurement of other long-term benefits | 21 | –5 |
Administrative expenses | 17 | 15 |
Total | 350 | 387 |
| Principal actuarial assumptions at the balance sheet | ||
date (expressed as weighted averages in %) | 2023 | 2022 |
| Discount rate | ||
Europe | 3.51 | 3.73 |
North America | 5.14 | 5.41 |
| Future salary increases | ||
| Europe | 2.56 | 2.53 |
| Medical cost trend rate | ||
North America | 4.50 | 4.50 |
Sensitivity analysis | Europe | North America |
Change in discount rate +0.5% | –523 | –21 |
Change in discount rate –0.5% | 546 | 22 |
Increase in life expectancy, +1 year | 228 | 13 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 120
22. Employee benefits, continued
Performance-based employee stock option plan 2023
Annual General Meeting Information of grant
Group Management´s
and division presidents’ own
investments Exercise price set Issue of options Plan expires
Vesting period Performance stock options and matching options exercisable
January 2023 April 2023 May 2023 June 2023 December 2023 February 2024 March 2024 May 1, 2026 April 30, 2030
0
40
80
120
160
200
0
20
40
60
80
100
120
140
160
180
200
Dec. 2023Jan 2016
Jan. 2016 Dec. 2023
Share price development 2016–2023
Value creation in the Group, measured as Economic Value Added (EVA) Stock options are issued at a premium after the performance
period. There is no economic value for the employee unless the
shareholder value increases during the vesting period.
Excersise is only possible when market price of series A share is
higher than the exercise price thus promoting a focus on the
Group´s sustained growth.
The performance period is in reality extended
2020 2021 2022 2023 2024 2025 2026
Stock option plan 2023:
Own investment required Exercisable
Stock option plan 2022:
Own investment required Exercisable
Stock option plan 2021:
Own investment required Exercisable
Stock option plan 2020:
Own investment required Exercisable
Own investment for Group Management and division presidents
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 121
2023 | Program | 2022 | Program | ||
| Key assumptions | (Dec. 31, 2023) | (at issue date) | |||
Expected exercise price | SEK 191/130 1 | SEK 139/95 1 2 | |||
Expected volatility | 30% | 30% | |||
Expected options life (years) | 4.3 | 4.1 | |||
Expected share price | SEK 173.55 | SEK 118.37 | |||
Expected dividend (growth) | SEK 2.4 | (6%) | 2.3 | (6%) | |
Risk free interest rate | 2.3% | 2.6% | |||
Expected average grant value | SEK 35.92/58.59 | SEK 25.29/42.09 | |||
Maximum number of options | 10 302 190 | 9 421 164 | |||
– of which forfeited | –113 403 | –170 520 | |||
Number of matching options | 96 829 | 86 840 |
22. Employee benefits, continued
Program | Vesting period | Exercise period | ||
Stock options | From | To | From | To |
2017 | May 2017 | April 2020 | May 2020 | April 2024 |
2018 | May 2018 | April 2021 | May 2021 | April 2025 |
2019 | May 2019 | April 2022 | May 2022 | April 2026 |
2020 1 | N/A | N/A | N/A | N/A |
2021 | May 2021 | April 2024 | May 2024 | April 2028 |
2022 | May 2022 | April 2025 | May 2025 | April 2029 |
2023 | May 2023 | April 2026 | May 2026 | April 2030 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 122
22. Employee benefits, continued
| Summary of share value based incentive programs | |||||||
| Initial number | Initial number | Expiration | Exercise | Type of | Fair value at | Intrinsic value | |
| Program | of employees | of options | date | price, SEK | share | issue date | for vested SARs |
| Stock options | |||||||
2016 | 256 | 29 667 891 | Apr. 30, 23 | 56.48 | A | 12.32 | – |
2017 | 262 | 12 416 688 | Apr. 30, 24 | 70.37 | A | 11.85 | – |
2018 | 269 | 9 786 066 | Apr. 30, 25 | 64.77 | A | 14.40 | – |
2019 | 267 | 13 628 104 | Apr. 30, 26 | 96.42 | A | 13.86 | – |
2021 | 289 | 6 904 551 | Apr. 30, 28 | 144.76 | A | 15.80 | – |
2022 | 414 | 7 965 604 | Apr. 30, 29 | 139.00 | A | 25.29 | – |
| Matching options | |||||||
2016 | 27 | 167 286 | Apr. 30, 23 | 38.61 | A | 19.60 | – |
2017 | 34 | 149 737 | Apr. 30, 24 | 48.00 | A | 20.01 | – |
2018 | 29 | 169 599 | Apr. 30, 25 | 44.16 | A | 22.77 | – |
2019 | 30 | 112 564 | Apr. 30, 26 | 65.76 | A | 24.09 | – |
2020 | 31 | 117 829 | Apr. 30, 27 | 87.59 | A | 43.29 | – |
2021 | 32 | 94 951 | Apr. 30, 28 | 98.63 | A | 29.93 | – |
2022 | 32 | 86 840 | Apr. 30, 29 | 95.00 | A | 42.09 | – |
| Share appreciation rights | |||||||
2016 | 64 | 6 466 282 | Apr. 30, 23 | 56.48 | A | – | 117.07 |
2017 | 61 | 2 473 914 | Apr. 30, 24 | 70.37 | A | – | 103.18 |
2018 | 57 | 1 769 052 | Apr. 30, 25 | 64.77 | A | – | 108.78 |
2019 | 62 | 2 659 552 | Apr. 30, 26 | 96.42 | A | – | 77.13 |
2021 | 44 | 855 181 | Apr. 30, 28 | 144.76 | A | – | – |
2022 | 77 | 1 285 040 | Apr. 30, 29 | 139.00 | A | – | – |
| Number of options/rights 2023 1 | |||||||
| Time to | Average stock | ||||||
| Outstanding | Expired/ | Outstanding | –of which | expiration, | price for exercised | ||
| Program | Jan. 1 | Exercised | forfeited | Dec. 31 | exercisable | in months | options, SEK |
| Stock options | |||||||
2016 | 1 473 840 | 1 473 840 | – | – | – | – | 123 |
2017 | 2 645 566 | 1 945 331 | – | 700 235 | 700 235 | 4 | 154 |
2018 | 5 560 398 | 2 182 794 | – | 3 377 604 | 3 377 604 | 16 | 155 |
2019 | 12 659 531 | 4 201 515 | – | 8 458 016 | 8 458 016 | 28 | 156 |
2021 | 6 735 855 | – | 154 610 | 6 581 245 | – | 52 | – |
2022 | 7 965 604 | – | 106 520 | 7 859 084 | – | 64 | – |
| Matching options | |||||||
2016 | 27 310 | 27 310 | – | – | – | – | 129 |
2017 | 42 097 | 35 096 | – | 7 001 | 7 001 | 4 | 152 |
2018 | 120 788 | 66 621 | – | 54 167 | 54 167 | 16 | 154 |
2019 | 101 626 | 41 519 | – | 60 107 | 60 107 | 28 | 161 |
2020 | 111 382 | 24 730 | – | 86 652 | 86 652 | 40 | 161 |
2021 | 94 951 | – | 4 490 | 90 461 | – | 52 | – |
2022 | 86 840 | – | 2 196 | 84 644 | – | 64 | – |
| Share appreciation rights | |||||||
2016 | 887 788 | 887 788 | – | – | – | – | 125 |
2017 | 1 053 155 | 683 400 | – | 369 755 | 369 755 | 4 | 153 |
2018 | 635 102 | 150 959 | – | 484 143 | 484 143 | 16 | 156 |
2019 | 1 564 152 | 553 634 | – | 1 010 518 | 1 010 518 | 28 | 152 |
2021 | 855 181 | – | 18 744 | 836 437 | – | 52 | – |
2022 | 1 285 040 | – | 16 000 | 1 269 040 | – | 64 | – |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 123
22. Employee benefits, continued
| Number of options/rights 2022 1 | ||||||||
| Average | ||||||||
| Time to | stock price | |||||||
| Outstanding | Expired/ | Outstanding | –of which | expiration, | for exercised | |||
| Program | Jan. 1 | Issued | Exercised | forfeited | Dec. 31 | exercisable | in months | options, SEK |
| Stock options | ||||||||
2016 | 2 261 917 | – | 788 077 | – | 1 473 840 | 1 473 840 | 4 | 125 |
2017 | 2 843 599 | – | 198 033 | – | 2 645 566 | 2 645 566 | 16 | 112 |
2018 | 6 119 294 | – | 527 861 | 31 035 | 5 560 398 | 5 560 398 | 28 | 123 |
2019 | 13 670 357 | – | 967 930 | 42 896 | 12 659 531 | 12 659 531 | 40 | 121 |
2021 | 6 904 551 | – | – | 168 696 | 6 735 855 | – | 64 | – |
2022 | – | 7 965 604 | – | – | 7 965 604 | – | 76 | – |
| Matching options | ||||||||
2016 | 36 563 | – | 9 253 | – | 27 310 | 27 310 | 4 | 115 |
2017 | 57 694 | – | 15 597 | – | 42 097 | 42 097 | 16 | 84 |
2018 | 132 692 | – | 11 904 | – | 120 788 | 120 788 | 28 | 134 |
2019 | 109 805 | – | 8 179 | – | 101 626 | 101 626 | 40 | 131 |
2020 | 114 707 | – | – | 3 325 | 111 382 | – | 52 | – |
2021 | 94 951 | – | – | 94 951 | – | 64 | – | |
2022 | – | 86 840 | – | – | 86 840 | – | 76 | – |
| Share appreciation rights | ||||||||
2016 | 1 304 700 | – | 416 912 | – | 887 788 | 887 788 | 4 | 128 |
2017 | 1 167 204 | – | 114 049 | – | 1 053 155 | 1 053 155 | 16 | 124 |
2018 | 640 693 | – | 5 591 | – | 635 102 | 635 102 | 28 | 105 |
2019 | 1 822 682 | – | 258 530 | – | 1 564 152 | 1 564 152 | 40 | 124 |
2021 | 855 181 | – | – | 855 181 | – | 64 | – | |
2022 | – | 1 285 040 | – | – | 1 285 040 | – | 76 | – |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 124
Other current liabilities | 2023 | 2022 |
| Derivatives: | ||
– at fair value through profit and loss | 721 | 205 |
– at fair value through OCI | – | 82 |
| Other financial liabilities: | ||
– other liabilities | 3 062 | 3 091 |
– accrued expenses | 11 052 | 9 906 |
Prepaid income other Contract liabilities: | 59 | 52 |
– advances from customers | 9 241 | 8 597 |
– deferred revenues construction contracts | 901 | 925 |
– deferred revenues service contracts | 2 730 | 2 536 |
Closing balance, Dec. 31 | 27 766 | 25 394 |
| Product | ||||
| 2023 | warranty | Restruc turing | Other | Total |
Opening balance, Jan. 1 | 1 472 | 137 | 1 621 | 3 230 |
| During the year: | ||||
– provisions made | 1 630 | 104 | 1 388 | 3 122 |
– provisions used | –1 160 | –80 | –365 | –1 605 |
| – provisions reversed | –206 | –11 | –166 | –383 |
Business acquisitions | 26 | – | 17 | 43 |
Translation differences | –62 | –11 | –43 | –116 |
Closing balance, Dec. 31 | 1 700 | 139 | 2 452 | 4 291 |
Non-current | 273 | 32 | 1 387 | 1 692 |
Current | 1 427 | 107 | 1 065 | 2 599 |
Total | 1 700 | 139 | 2 452 | 4 291 |
| Product | ||||
| 2022 | warranty | Restruc turing | Other | Total |
Opening balance, Jan. 1 | 1 261 | 271 | 1 780 | 3 312 |
| During the year: | ||||
– provisions made | 1 409 | 80 | 437 | 1 926 |
– provisions used | –1 090 | –113 | –279 | –1 482 |
– provisions reversed | –261 | –117 | –387 | –765 |
Business acquisitions | 40 | – | 16 | 56 |
Translation differences | 113 | 16 | 54 | 183 |
Closing balance, Dec. 31 | 1 472 | 137 | 1 621 | 3 230 |
Non-current | 257 | 33 | 1 187 | 1 477 |
Current | 1 215 | 104 | 434 | 1 753 |
Total | 1 472 | 137 | 1 621 | 3 230 |
| Maturity | Product | |||
| 2023 | warranty | Restruc turing | Other | Total |
Less than one year | 1 427 | 107 | 1 065 | 2 599 |
Between one and five years | 259 | 24 | 990 | 1 273 |
More than five years | 14 | 8 | 397 | 419 |
Total | 1 700 | 139 | 2 452 | 4 291 |
Provisions made in 2023 includes MSEK 606 related to a provision for a com- mercial dispute originating from an agreement dating back to before the current Group structure and the split of the Group in 2018. |
| Assets pledged for debts to credit | ||
institutions and other commitments | 2023 | 2022 |
Inventory | 20 | 31 |
Endowment insurances | 205 | 199 |
Total | 225 | 230 |
Contingent liabilities | 2023 | 2022 |
Notes discounted | 13 | 8 |
Sureties and other contingent liabilities | 287 | 259 |
Total | 300 | 267 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 125
Financial Solutions
Financial Risk Management Committee (FRMC)
BOARD OF DIRECTORS ATLAS COPCO AB
Policies
Decisions
Financial Solutions Asia
and Pacific
Financial Solutions Europe,
Middle East and Africa
Financial Solutions North America
and South America
Execution and monitoring
Funding and liquidity risk | 2023 | 2022 |
Committed credit facilities | 18 124 | 18 277 |
Cash and cash equivalents | 10 887 | 11 254 |
Average tenor, years | 5.7 | 4.0 |
Current external debt | 164 | 3 524 |
Financial instruments | Up to 1 year | 1–3 years | 4–5 years | Over 5 years |
Bonds and loans | – | 5 948 | 3 443 | 16 306 |
Lease liabilities | – | 2 015 | 1 011 | 1 411 |
Other financial liabilities | – | 84 | 33 | 1 |
Other liabilities | – | 223 | 2 | – |
Non-current financial liabilities | – | 8 270 | 4 489 | 17 718 |
Bonds and loans | 1 249 | – | – | – |
Lease liabilities | 1 520 | – | – | – |
Current portion of interest-bearing liabilities | 164 | – | – | – |
Derivatives | 721 | – | – | – |
Other accrued expenses | 11 052 | – | – | – |
Trade payables | 17 792 | – | – | – |
Other liabilities | 3 062 | – | – | – |
Current financial liabilities | 35 560 | – | – | – |
Financial liabilities | 35 560 | 8 270 | 4 489 | 17 718 |
SEK
0
1
2
3
4
5
6
2023
2
2022202120202019201820172016201520142013
3.00
3.75
3.90
Earnings and distribution per share 1
Dividend and redemption per share, SEK
Add back extra ordinary items, SEK
Earnings per share, SEK
Ordinary dividend per share, SEK
Distribution of Epiroc AB on June 18, 2018
1 Adjusted for share split in 2022
2 Proposed by the Board of Directors
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 126
GRAPH 1 Estimated operational transaction exposure in the Group’s most important currencies*
–25 000
–20 000
–15 000
–10 000
–5 000
0
5 000
10 000
15 000
20 000
25 000
OtherZARUSDSEKKRWINRIDRGBPEURCZKCNYCADBRLAUD
MSEK
2023
–25 000
–20 000
–15 000
–10 000
–5 000
0
5 000
10 000
15 000
20 000
25 000
OtherZARUSDSEKKRWINRIDRGBPEURCZKCNYCADBRLAUD
MSEK
2022
–25 000
–20 000
–15 000
–10 000
–5 000
0
5 000
10 000
15 000
20 000
25 000
OtherZARUSDSEKKRWINRIDRGBPEURCZKCNYCADBRLAUD
MSEK
2023
–25 000
–20 000
–15 000
–10 000
–5 000
0
5 000
10 000
15 000
20 000
25 000
OtherZARUSDSEKKRWINRIDRGBPEURCZKCNYCADBRLAUD
MSEK
2022
* Without adjustments for onetime effects.
Transaction exposure
26. Financial exposure and principles for control of financial risks, continued
Interest risk | 2023 | 2022 |
Effective interest rate on bonds and loans | 1.6% | 1.2% |
Effective interest rate on lease liabilities | 3.0% | 1.8% |
Duration (months) | 45 | 46 |
Transaction exposure sensitivity | 2023 | 2022 |
SEK exchange rate + 5% | –323 | –255 |
USD exchange rate + 5% | 1 157 | 980 |
EUR exchange rate + 5% | –1 075 | –914 |
| Outstanding derivative | 2023 | 2022 |
| instruments related to | Nominal amount, net in | Nominal amount, net in |
| transaction exposure | transaction currency | transaction currency |
| Foreign exchange forwards | ||
GBP | – | 73 |
USD | – | –96 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 127
–5
–4
–3
–2
–1
0
1
2
3
4
5
–1 710
–1 368
–1 026
–684
–342
0
342
684
1 026
1 368
1 710
Change in exchange rate SEK, %
–5
–4
–3
–2
–1
0
1
2
3
4
5
–1 710
–1 368
–1 026
–684
–342
0
342
684
1 026
1 368
1 710
Change in exchange rate SEK, %
–1 710
–1 368
–1 026
–684
–342
0
342
684
1 026
1 368
1 710
GRAPH 2
Translation effect on
profit before tax
26. Financial exposure and principles for control of financial risks, continued
| Outstanding | 2023 | 2022 | ||
| financial | ||||
| instru ments | ||||
| related | ||||
| to trans lation | Nominal | Nominal | ||
| exposure | Effect in OCI | amount | Effect in OCI | amount |
Loans in EUR 1 | MSEK –534 | MEUR 1 458 | MSEK –1 238 | MEUR 1 314 |
Credit risk | 2023 | 2022 |
| Receivables at amortized cost: | ||
– trade receivables | 32 708 | 29 971 |
– lease receivables | 110 | 94 |
– other financial receivables | 691 | 362 |
– other receivables | 3 029 | 3 314 |
– contract assets | 5 699 | 4 738 |
– cash and cash equivalents | 10 887 | 11 254 |
Financial assets at fair value through OCI | 1 | 1 |
Financial assets at fair value through profit or loss | 425 | 677 |
Derivatives | 108 | 34 |
Total | 53 658 | 50 445 |
2023 | 2022 | |||
| Trade receivables | Gross | Impairment | Gross | Impairment |
Not past due | 25 591 | 1 | 23 722 | 5 |
Past due but not individually impaired | ||||
0–30 days | 3 424 | – | 3 017 | – |
31–60 days | 1 463 | – | 1 215 | – |
61–90 days | 730 | – | 764 | – |
More than 90 days | 2 220 | – | 1 892 | – |
Past due and individually impaired | ||||
0–30 days | 2 | 1 | 4 | 1 |
31–60 days | 3 | 2 | 3 | 2 |
61–90 days | 14 | 7 | 3 | 3 |
More than 90 days | 339 | 315 | 327 | 287 |
Collective impairment | – | 752 | – | 678 |
Total | 33 786 | 1 078 | 30 947 | 976 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 128
26. Financial exposure and principles for control of financial risks, continued
| Outstanding derivative instruments | ||
2023 | 2022 | |
Assets | 108 | 34 |
Liabilities | 721 | 287 |
| Outstanding net position for derivative instruments | ||||||
| Offset in | Net in | Master | ||||
| balance | balance | netting | Cash | Net | ||
| Gross | sheet | sheet | agreement | collateral | position | |
| Assets | ||||||
Derivatives | 108 | – | 108 | –108 | – | – |
| Liabilities | ||||||
Derivatives | 721 | – | 721 | –108 | –567 | 46 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
Atlas Copco Group 2023 129
26. Financial exposure and principles for control of financial risks, continued
| Financial instruments by | 2023 | 2022 | ||||||
| fair value hierarchy | Fair value | Level 1 | Level 2 | Level 3 | Fair value | Level 1 | Level 2 | Level 3 |
Financial assets | 262 | 96 | 166 | – | 245 | 86 | 159 | – |
Other receivables | 28 | – | 28 | – | 61 | – | 61 | – |
Non-current financial assets | 290 | 96 | 194 | – | 306 | 86 | 220 | – |
Trade receivables | 32 680 | – | 32 680 | – | 29 910 | – | 29 910 | – |
Financial assets | 965 | – | 965 | – | 889 | – | 889 | – |
Other receivables | 3 029 | – | 3 029 | – | 3 315 | – | 3 315 | – |
Derivatives | 108 | – | 108 | – | 34 | – | 34 | – |
Contract assets | 5 699 | – | 5 699 | – | 4 738 | – | 4 738 | – |
Current financial assets | 42 481 | – | 42 481 | – | 38 886 | – | 38 886 | – |
Financial assets | 42 771 | 96 | 42 675 | – | 39 192 | 86 | 39 106 | – |
Bonds and loans | 23 913 | 12 634 | 11 279 | – | 17 491 | 15 535 | 1 956 | – |
Other financial liabilities | 118 | – | 118 | – | 32 | – | 32 | – |
Other liabilities | 225 | – | 148 | 77 | 230 | – | 104 | 126 |
Non-current financial liabilities | 24 256 | 12 634 | 11 545 | 77 | 17 753 | 15 535 | 2 092 | 126 |
Current portion of long-term loans | 164 | – | 164 | – | 3 500 | – | 3 500 | – |
Short-term loans | 1 087 | – | 1 087 | – | 7 735 | – | 7 735 | – |
Derivatives | 721 | – | 721 | – | 287 | – | 287 | – |
Other accrued expenses | 11 052 | – | 11 052 | – | 9 906 | – | 9 906 | – |
Trade payables | 17 792 | – | 17 792 | – | 19 145 | – | 19 145 | – |
Other liabilities | 3 062 | – | 3 008 | 54 | 3 091 | – | 2 918 | 173 |
Current financial liabilities | 33 878 | – | 33 824 | 54 | 43 664 | – | 43 491 | 173 |
Financial liabilities | 58 134 | 12 634 | 45 369 | 131 | 61 417 | 15 535 | 45 583 | 299 |
| Reconciliation of financial liabilities | Opening | Business | Translation | Closing | ||||
| in Level 3 | balance | acquisitions | Settlement | Discounting effect | Remeasurement | differences | balance | Result related to liabilities, net |
Contingent considerations 2023 | 299 | –1 | –94 | 14 | –84 | –3 | 131 | 70 |
Year-end rate | Average rate | |||||
Currency rates used in the financial statements | Value | Code | 2023 | 2022 | 2023 | 2022 |
Canada | 1 | CAD | 7.54 | 7.72 | 7.83 | 7.73 |
China | 1 | CNY | 1.41 | 1.50 | 1.49 | 1.50 |
EU | 1 | EUR | 11.05 | 11.14 | 11.44 | 10.64 |
India | 1 | INR | 0.12 | 0.13 | 0.13 | 0.13 |
South Korea | 1 000 | KRW | 7.75 | 8.27 | 8.10 | 7.86 |
United Kingdom | 1 | GBP | 12.73 | 12.63 | 13.15 | 12.47 |
U.S.A. | 1 | USD | 9.98 | 10.46 | 10.57 | 10.08 |
2023 | 2022 | |
Revenues | 29 | 16 |
Goods purchased | 22 | 29 |
Service purchased | 141 | 101 |
| At Dec. 31: | ||
Trade receivables | 20 | 9 |
Trade payables | 23 | 16 |
Lease liabilities | 536 | 340 |
FINANCIAL STATEMENTS – NOTES
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
• Notes
Parent company
Other information
FINANCIAL STATEMENTS
Atlas Copco Group 2023 130
Financial statements, Parent Company
Income statement
For the year ended December 31
Amounts in MSEK Note 2023 2022
Administrative expenses A2 –932 –733
Other operating income A3 476 278
Other operating expenses A3 – –9
Operating loss –456 –464
Financial income A4 9 935 30 613
Financial expenses A4 –1 241 –342
Profit after financial items 8 238 29 807
Appropriations A5 3 383 2 946
Profit before tax 11 621 32 753
Income tax A6 –247 –320
Profit for the year 11 374 32 433
Statement of comprehensive income
For the year ended December 31
Amounts in MSEK Note 2023 2022
Profit for the year 11 374 32 433
Other comprehensive income
for the year
– –
Total comprehensive income
for the year
11 374 32 433
Balance sheet
As at December 31
Amounts in MSEK Note 2023 2022
ASSETS
Non-current assets
Intangible assets A7 4 8
Tangible assets A8 29 33
Financial assets:
Deferred tax assets A9 121 55
Shares in Group companies A10, A21 192 460 179 491
Other financial assets A11 271 255
Total non-current assets 192 885 179 842
Current assets
Income tax receivables 553 461
Other receivables A12 4 612 4 471
Cash and cash equivalents A13 0 0
Total current assets 5 165 4 932
TOTAL ASSETS 198 050 184 774
As at December 31
Amounts in MSEK Note 2023 2022
EQUITY
Restricted equity
Share capital 786 786
Legal reserve 4 999 4 999
Total restricted equity 5 785 5 785
Non-restricted equity
Reserve for fair value –1 180 –1 180
Retained earnings 146 250 125 264
Profit for the year 11 374 32 433
Total non-restricted equity 156 444 156 517
TOTAL EQUITY 162 229 162 302
PROVISIONS
Post-employment benefits A15 209 203
Other provisions A16 651 501
Total provisions 860 704
LIABILITIES
Non-current liabilities
Borrowings A17 34 605 18 532
Total non-current liabilities 34 605 18 532
Current liabilities
Borrowings A17 – 2 861
Other liabilities A18 356 375
Total current liabilities 356 3 236
TOTAL EQUITY AND LIABILITIES 198 050 184 774
Information concerning assets pledged and contingent liabilities is disclosed
in note A20.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS
Atlas Copco Group 2023 131
Statement of changes in equity
MSEK unless otherwise stated Number of shares outstanding Share capital Legal reserve Reserve for fair value – translation reserve Retained earnings Total
Opening balance, Jan. 1, 2023 4 868 356 965 786 4 999 –1 180 157 697 162 302
Total comprehensive income for the year – – – – 11 374 11 374
Ordinary dividend – – – – –11 203 –11 203
Acquisition series A shares –7 785 000 – – – –1 243 –1 243
Divestment series A shares
9 987 318 –
– –
1 508
1 508
Share-based payment, equity settled:
– expense during the year – – – – 197 197
– exercise of options – – – – –706 –706
Closing balance, Dec. 31, 2023
4 870 559 283 786 4 999 –1 180 157 624 162 229
Opening balance, Jan. 1, 2022 1 218 190 368 786 4 999 –1 180 144 771 149 376
Total comprehensive income for the year – – – – 32 433 32 433
Ordinary dividend – – – – –9 250 –9 250
Share split 4 872 761 472 – – – – –
Redemption of shares –1 223 320 239 –157 – – –9 575 –9 732
Increase of share capital through bonus issue – 157 – – –157 –
Acquisition series A shares –1 870 000 – – – –864 –864
Divestment series A shares 2 595 364 – – – 381 381
Share-based payment, equity settled:
– expense during the year – – – – 89 89
– exercise of options – – – – –131 –131
Closing balance, Dec. 31, 2022 4 868 356 965 786 4 999 –1 180 157 697 162 302
See note A14 for additional information.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS
Atlas Copco Group 2023 132
Statement of cash flows
For the year ended December 31, MSEK 2023 2022
Cash flows from operating activities
Operating loss –456 –464
Adjustments for:
Depreciation 10 12
Capital gain/loss and other non-cash items
–775 –686
Operating cash deficit –1 221 –1 138
Net financial items received 7 783 22 834
Group contributions received 2 946 2 695
Taxes paid –356 –309
Cash flow before change in working capital 9 152 24 082
Change in
Operating receivables 304 5 276
Operating liabilities –18 30
Change in working capital 286 5 306
Net cash from operating activities 9 438 29 388
For the year ended December 31, MSEK 2023 2022
Cash flow from investing activities
Investments in tangible assets –2 –6
Investments in subsidiaries –12 146 –8 186
Repayments/investments in financial assets – –3
Net cash from investing activities
–12 148 –8 195
Cash flow from financing activities
Dividends paid –11 203 –9 250
Redemption of shares – –9 732
Repurchase and divestment of own shares 265 –483
Change in interest-bearing liabilities 13 648 –1 728
Net cash from financing activities 2 710 –21 193
Net cash flow for the year 0 0
Cash and cash equivalents, Jan. 1 0 0
Net cash flow for the year 0 0
Cash and cash equivalents, Dec. 31 0 0
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 133
Notes to the Parent Company financial statements
MSEK unless otherwise stated
A1. Significant accounting principles
Atlas Copco AB is the ultimate Parent Company of the Atlas Copco Group
and is headquartered in Nacka, Sweden. Its operations include administra-
tive functions, holding company functions as well as parts of Atlas Copco
Financial Solutions (Treasury).
The financial statements of Atlas Copco AB have been prepared in accor-
dance with the Swedish Annual Accounts Act and the recommendation RFR
2, “Accounting for Legal Entities”, hereafter referred to as “RFR 2”, issued by
the Swedish Financial Reporting Board. In accordance with RFR 2, parent
companies that issue consolidated financial statements according to Inter-
national Financial Reporting Standards (IFRS), as endorsed by the European
Union, shall present their financial statements in accordance with IFRS, to the
extent these accounting principles comply with the Swedish Annual Accounts
Act and may use exemptions from IFRS provided by RFR 2 due to Swedish
accounting or tax legislation.
The financial statements are presented in Swedish krona (SEK), rounded to
the nearest million. The parent company’s accounting principles have been
consistently applied to all periods presented unless otherwise stated. The
financial statements are prepared using the same accounting principles as
described in note 1 in the Group’s consolidated financial statements, except
for those disclosed in the following sections.
For discussion regarding accounting estimates and judgments, see
page 92.
Subsidiaries
Participations in subsidiaries are accounted for by the Parent Company at histor-
ical cost. See the Group’s accounting policies, Impairment of financial assets, for
further details.
Transaction costs incurred in connection with a business combination are
accounted for by the Parent Company as part of the acquisition costs and are
not expensed.
Lease contracts
All lease contracts entered into by the Parent Company are expensed
continuously on a straight-line basis over the lease term. Leases are not car-
ried as assets, since the risk and rewards associated with ownership of the
assets have not been transferred to the Parent Company.
Employee benefits
Defined benefit plans
Defined benefit plans are not accounted for in accordance with IAS 19. In
the Parent Company defined benefit plans are accounted for according to
the Swedish law regarding pensions, ”Tryggandelagen” and regulations
issued by the Swedish Financial Supervisory Board. The primary differences
as compared to IAS 19 are the way discount rates are fixed, that the calcula-
tion of defined benefit obligations is based on current salary levels, without
consideration of future salary increases and that all actuarial gains and losses
are included in profit or loss as they occur.
Share-based payments
The share-based payments that the Parent Company has granted to employ-
ees in the Parent Company are accounted for using the same principle as
described in note 1 in the Group’s consolidated financial statements.
The share-based payments that the Parent Company has granted to
employees in subsidiaries are not accounted for as an employee expense in
the Parent Company, but are recognized against Shares in Group compa-
nies. This vesting cost is accrued over the same period as in the Group and
with a corresponding increase in equity for equity-settled programs and as a
change in liabilities for cash-settled programs.
Financial guarantees
Financial guarantees issued by the Parent Company for the benefit of subsid-
iaries are not valued according to IFRS 9. They are reported as contingent
liabilities, unless it becomes probable that the guarantees will lead to pay-
ments. In such case, provisions will be recorded.
Hedge accounting
Interest-bearing liabilities denominated in other currencies than SEK, used to
hedge currency exposure from investments in shares of foreign subsidiaries
are not translated using the foreign exchange rates on the reporting date,
but measured based on the exchange rate the day that the hedging relation
was established.
Derivatives used to hedge investments in shares in foreign subsidiaries
are recognized at fair value and changes therein are recognized in profit or
loss. The corresponding fair value change on shares in subsidiaries is recog-
nized in profit or loss, as fair value hedge accounting is applied.
Group and shareholders’ contributions
In Sweden, Group contributions are deductible for tax purposes but share-
holders’ contributions are not. Group contributions are recognized as
appropriations in the income statement. Shareholders’ contributions are
recognized as an increase of Shares in Group companies and tested for
impairment.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 134
A2. Employees and personnel expenses and remuneration to auditors
Average number of employees 2023 2022
Women Men Total Women Men Total
Sweden 78 41 119 67 43 110
Women in Atlas Copco Board and Management, % Dec. 31, 2023 Dec. 31, 2022
Board of Directors excl. employee representatives 38 22
Group Management 33 33
Salaries and other remunerations 2023 2022
Board members and Group Management 1 Other employees Board members and Group Management 1 Other employees
Sweden 107 164 84 123
of which variable compensation 22 23
1 Includes 8 (8) board members who receive fees from Atlas Copco AB as well as the President and CEO and 5 (5) positions
of the Group Management who are employed by and receive salary and other fees from the Company.
For information regarding remuneration and other fees for members of the Board, the President and CEO,
and other members of Group Management, see note 4 of the consolidated financial statements.
Pension benefits and other social costs 2023 2022
Contractual pension benefits for Board members and Group Management 12 12
Contractual pension benefits for other employees 25 25
Other social costs 102 64
Total 139 101
Pension obligations to former members of Group Management 4 4
Remuneration to auditors
Audit fees and consultancy fees for advice or assistance other than audit, were as follows:
2023 2022
Ernst & Young
–audit fee 6 6
– other services, tax – 0
– other services, other 1 0
Total 7 6
Audit fee refers to audit of the financial statements and the accounting records. For the Parent Company the
audit also includes the administration of the business by the Board of Directors, the President and CEO.
Tax services include tax compliance services. Other services essentially comprise consultancy services.
At the Annual General Meeting Ernst & Young AB was re-elected as the company’s auditor until the end of
the annual general meeting 2024.
A3. Other operating income and expense
2023 2022
Commissions received 413 271
Exchange-rate differences, net 5 –
Other operating income 58 7
Total other operating income 476 278
Exchange-rate differences, net – –9
Total other operating expense –
–9
A4. Financial income and expenses
Financial income and expenses 2023 2022
Interest income:
– cash and cash equivalents 9 1
– receivables from Group companies 184 38
Dividend income from Group companies 9 739 30 536
Change in fair value:
– other assets 3 31
Foreign exchange gain, net – 7
Financial income 9 935 30 613
Interest expense:
– borrowings –328 –168
– liabilities to Group companies –309 –101
Capital loss –7 –
Change in fair value:
– other liabilities 0 –61
Foreign exchange loss, net –4 –4
Impairment loss:
– shares in Group companies –593 –8
Financial expenses –1 241 –342
Financial income, net 8 694 30 271
Following table presents the net gain or loss by category of financial
instruments.
Net gain/loss on 2023 2022
– loans and receivables, incl. bank deposits –139 –126
– other assets 3 31
– other liabilities –316 –162
Profit from shares in Group companies 9 146 30 528
Total 8 694 30 271
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 135
A4. Financial income and expenses, continued
Profit from shares in Group companies mainly refers to dividend income
from subsidiaries and capital gains from transfer of shares in subsidiaries.
These transactions are eliminated in the Group accounts since they are
internal. For further information about the hedges, see note 26 of the
consolidated financial statements.
A5. Appropriations
2023 2022
Group contributions paid 0 –3
Group contributions received 3 383 2 949
Total 3 383 2 946
A6. Income tax
2023 2022
Current tax –282 –312
Deferred tax 35 –8
Total –247 –320
Profit before taxes 11 621 32 753
The Swedish corporate tax rate, % 20.6 20.6
National tax based on profit before taxes –2 394 –6 747
Tax effects of:
– non-deductible expenses –151 70
– tax exempt income 2 018 6 290
– deductible expenses, not recognized in
Income statement
289 3
– deductible income, not recognized in
Income statement
– 7
– tax financial net – 26
– controlled foreign company taxation –20 –27
– adjustments from prior years 11 58
Total –247 –320
Effective tax in % 2.1 1.0
The Parent Company’s effective tax rate of 2.1% (1.0) is primarily affected by
non-taxable income such as dividends from Group companies.
A7. Intangible assets
Capitalized expenditures
for computer programs
2023 2022
Accumulated cost
Opening balance, Jan. 1 34 72
Disposals – –38
Closing balance, Dec. 31 34 34
Accumulated depreciation
Opening balance, Jan. 1 26 59
Depreciation for the year 4 5
Disposals
–
–38
Closing balance, Dec. 31 30 26
Carrying amount
Opening balance, Jan. 1 8 13
Closing balance, Dec. 31
4 8
A8. Property, plant and equipment
2023 2022
Buildings and land Machinery and equipment Total Buildings and land Machinery and equipment Total
Accumulated cost
Opening balance, Jan. 1 48 60 108 48 68 116
Investments 1 1 2 0 6 6
Disposals – –1 –1 – –14 –14
Closing balance, Dec. 31 49 60 109 48 60 108
Accumulated depreciation
Opening balance, Jan. 1 22 53 75 19 63 82
Depreciation for the year 4 2 6 3 4 7
Disposals – –1 –1 – –14 –14
Closing balance, Dec. 31 26 54 80 22 53 75
Carrying amount
Opening balance, Jan. 1 26 7 33 29 5 34
Closing balance, Dec. 31 23 6 29 26 7 33
The asset Buildings and land relates to improvements in leased properties.
Depreciation is accounted for under administrative expenses in the Income
Statement.
The leasing costs for assets under operating leases, such as rented prem-
ises, cars and office equipment are reported among administrative expenses
and amounted to 69 (62). Future payments for non-cancelable leasing con-
tracts amounted to 570 (611) and fall due as follows in the table beside.
2023 2022
Less than one year 71 65
Between one and five years 248 258
More than five years 251 288
Total 570 611
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 136
A9. Deferred tax assets and liabilities
2023 2022
Assets Liabi lities
Net
balance Assets Liabi lities
Net
balance
Post-employment
benefits
43 – 43 42 – 42
Other provisions 78 – 78 13 – 13
Total 121 – 121 55 – 55
The following reconciles the net balance of deferred taxes at the beginning
of the year to that at the end of the year:
2023 2022
Net opening balance, Jan. 1 55 63
Charges to equity 31 –
Charges to profit for the year 35 –8
Net closing balance, Dec. 31, net 121 55
A10. Shares in Group companies
2023 2022
Accumulated cost
Opening balance, Jan. 1 259 254 243 324
Investments – 3
Net investment hedge 1 075 450
Shareholders’ contribution 12 504 15 477
Divestments –17 –
Closing balance, Dec. 31 272 816 259 254
Accumulated write-up
Opening balance, Jan. 1 600 600
Closing balance, Dec. 31 600 600
Accumulated write-down
Opening balance, Jan. 1 –80 363 –80 355
Write-down –593 –8
Closing balance, Dec. 31 –80 956 –80 363
Total 192 460 179 491
For further information about Group companies, see note A21.
A11. Other financial assets
2023 2022
Receivables from Group companies 9 –
Endowment insurances 205 199
Financial assets measured at amortized cost:
– other financial receivables 57 56
Closing balance, Dec. 31 271 255
Endowment insurances relate to defined contribution pension plans and are
pledged to the pension beneficiary (see note A15 and A20).
A12. Other receivables
2023 2022
Receivables from Group companies 4 501 4 396
Financial assets measured at amortized cost:
– other receivables 26 17
Prepaid expenses and accrued income 85 58
Closing balance, Dec. 31 4 612 4 471
A13. Cash and cash equivalents
2023 2022
Cash and cash equivalents measured at
amortized cost:
– cash 0 0
Closing balance, Dec. 31 0 0
The Parent Company’s guaranteed, but unutilized, credit lines equaled
7 073 (7 133).
A14. Equity
For information on share transactions and mandates approved by the
Annual General Meeting and proposed dividend for 2023, see note 19 in the
consolidated financial statements.
Reserves
The Parent Company’s equity includes certain reserves which are described
as follows:
Legal reserve
The legal reserve is a part of the restricted equity and is not available for
distribution.
Reserve for fair value – Translation reserve
The reserve comprises translation of intragroup receivables from or liabilities
to foreign operations that in substance are part of the net investment in the
foreign operations, as well as cash flow hedges to convert variable interest
rates to fixed interest rates.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 137
A15. Post-employment benefits
2023 2022
Defined contribution
pension plans
Defined benefit
pension plans Total
Defined contribution
pension plans
Defined benefit
pension plans Total
Opening balance, Jan. 1 199 4 203 201 4 205
Provision made 33 1 34 26 1 27
Provision used –27 –1 –28 –28 –1 –29
Closing balance, Dec. 31
205
4 209
199 4
203
The Parent Company has endowment insurances of 205 (199) relating to defined contribution pension plans. The insurances are recognized as
other financial assets, and pledged to the pension beneficiary.
Description of defined benefit pension plans
The Parent Company has two defined benefit pension plans. The ITP plan is a final salary pension plan covering the majority of salaried employees in
Atlas Copco AB which benefits are secured through the Atlas Copco pension trust. The second plan relates to retired former senior employees.
These pension arrangements are provided for.
2023 2022
Funded pension Unfunded pension Total Funded pension Unfunded pension Total
Defined benefit obligations 186 4 190 172 4 176
Fair value of plan assets –594 – –594 –625 – –625
Present value of net obligations –408 4 –404 –453 4 –449
Not recognized surplus 408 – 408 453 – 453
Net amount recognized in balance sheet 0 4 4 0 4 4
2023 2022
Reconciliation of defined benefit obligations
Funded pension Unfunded pension Total Funded pension Unfunded pension Total
Defined benefit obligations at Jan. 1 172 4 176 150 5 155
Service cost 3 1 4 4 0 4
Interest expense 5 0 5 4 0 4
Benefits paid from plan 14 – 14 –8 –1 –9
Other changes in obligations –8 –1 –9 22 0 22
Defined benefit obligations at Dec. 31 186 4 190 172 4 176
2023 2022
Reconciliation of plan assets Funded pension Unfunded pension Total Funded pension Unfunded pension Total
Fair value of plan assets at Jan. 1 625 – 625 672 – 672
Return on plan assets –23 – –23 –39 – –39
Payments/Renumeration of plan assets –8 – –8 –8 – –8
Fair value of plan assets at Dec. 31 594 – 594 625 – 625
2023 2022
Pension commitments provided
for in the balance sheet
Costs excluding interest 16 16
Total 16 16
Pension commitments provided for
through insurance contracts
Service cost 25 25
Total 25
25
Net cost for pensions, excluding taxes 41 41
Special employer’s contribution 7 7
Total 48 48
Pension expenses excluding taxes for the year, included within administra-
tive expenses amounted to 41 (41) of which the Board members and Group
Management 12 (12) and others 29 (29).
The Parent Company’s share in plan assets fair value in the Atlas Copco
pension trust amounts to 594 (625) and is allocated as follows:
2023 2022
Equity securities 107 61
Bonds 119 38
Real estate 2 –
Alternative investments 281 260
Cash and cash equivalents 85 266
Total 594 625
The plan assets of the Atlas Copco pension trust are not included in the
financial assets of the Parent Company.
The return on plan assets in the Atlas Copco pension trust amounted to
0.24% (–6.91) inclusive of MSEK 8.1 (8.1) paid remuneration.
The Parent Company adheres to the actuarial assumptions used by The
Swedish Pension Registration Institute (PRI) i.e. discount rate 2.9% (2.9). The
Parent Company estimates MSEK 11 will be paid to defined benefit pension
plans during 2024.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 138
A16. Other provisions
2023 2022
Opening balance, Jan. 1 501 813
During the year:
– provisions made 364 –245
– provisions used –214 –67
Closing balance, Dec. 31
651
501
Other provisions include primarily provisions for costs related to employee
option programs accounted for in accordance with IFRS 2 and UFR 7.
A17. Borrowings
2023 2022
Maturity Repurchased nominal amount Carrying amount Fair value Carrying amount Fair value
Non-current
Medium Term Note Program MEUR 500 2023 MEUR 314 – – 2 861 3 500
Medium Term Note Program MEUR 500 2026 5 077 5 215 5 076 5 063
Bilateral borrowings NIB MEUR 200 2024 MEUR 200 – – 2 100 2 257
Bilateral borrowings EIB MEUR 200 2027
2 030 2 099
2 030 1 958
Bilateral borrowings EIB MEUR 100 2028 1 012 1 009 1 012 959
Bilateral borrowings EIB MEUR 415 2030 4 576 4 718 – –
Bilateral borrowings EIB MEUR 60 2030 697 683 – –
Bilateral borrowings NIB MEUR 183
2031
2 045
2 053 –
–
Non-current borrowings from Group companies 19 168 20 752 8 314 9 614
Less current portion of long-term borrowings – – –2 861 –3 500
Total non-current borrowings 34 605 36 529 18 532 19 851
Current
Current portion of long-term borrowings – – 2 861 3 500
Total current borrowings – – 2 861 3 500
Closing balance, Dec. 31 34 605 36 529 21 393 23 351
Whereof external borrowings 15 437 15 777 13 079 13 737
The difference between carrying value and fair value relates to the measurement method as certain liabilities are reported at amortized cost and not at fair
value. Changes in interest rates and credit margins create the difference between fair value and amortized cost. Repaid borrowings during 2023 included the
outstanding amount of MEUR 314 of a MEUR 500 public bond and MEUR 200 loan from the Nordic Investment Bank (NIB). New borrowings included a MEUR
475 long-term loan from the European Investment bank (EIB) and a long-term loan of MEUR 183 from Nordic Investment Bank (NIB).
The following table shows the maturity structure of the Parent Company’s
external borrowings.
Maturity Fixed Floating 1 Carrying amount Fair value
2026 5 077 – 5 077 5 215
2027 2 030 – 2 030 2 099
2028 1 012 – 1 012 1 009
2030 – 5 273 5 273 5 401
2031 – 2 045 2 045 2 053
Total 8 119 7 318 15 437 15 777
1 Floating interest in the table is borrowings with fixings shorter or equal to six months.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 139
A18. Other liabilities
2023 2022
Accounts payable 24 15
Liabilities to Group companies 63 90
Other financial liabilities:
– other liabilities 47 38
Accrued expenses and prepaid income 222 232
Closing balance, Dec. 31 356 375
Accrued expenses include items such as social costs, vacation pay liability,
and accrued interest.
A19.
Financial exposure and principles for control
of financial risks
Parent Company borrowings
Atlas Copco AB had MSEK 15 437 (13 079) of external borrowings and MSEK
19 168 (8 314) of internal borrowings at December 31, 2023. Derivative
instruments are used to manage the currency and interest rate risk in line
with policies set by the Financial Risk Management Committee, see note 26 in
the consolidated financial statements.
Hedge accounting
The Parent Company hedges shares in subsidiaries through loans of MEUR
2 378 (2 392) The deferral hedge accounting of the loans is based on a RFR 2
exemption.
Financial credit risk
Credit risk on financial transactions is the risk that the Parent Company incurs
losses as a result of non-payment by counterparts related to the Parent
Company’s investments, bank deposits or derivative transactions. For further
information regarding investment and derivative transactions, see note 26 of
the consolidated financial statements. The table below shows the actual expo-
sure of financial instruments as per December 31.
Financial credit risk 2023 2022
Cash and cash equivalents 0 0
Receivables from Group companies 4 510 4 396
Other 169 131
Total 4 679 4 527
Fair value hierarchy
Fair values are based on observable market prices or, in the case that such
prices are not available, on observable inputs or other valuation techniques.
Amounts shown in other notes are unrealized and will not necessarily be
realized. For more information about fair value hierarchy, see note 26 of the
consolidated financial statements. There are no level 3 instruments in the
Parent Company.
Valuation methods
Derivatives
Fair values of forward exchange contracts are calculated based on prevailing
markets. Interest rate swaps are valued based on market rates and present
value of future cash flows.
Interest-bearing liabilities
Fair values are calculated based on market rates and present value of future
cash flows.
The Parent Company’s financial instruments by category
The carrying value for the Parent Company’s financial instruments corre-
sponds to fair value in all categories except for borrowings. See note A17 for
additional information.
A20. Assets pledged and contingent liabilities
2023 2022
Assets pledged for pension commitments
Endowment insurances 205 199
Total 205 199
Contingent liabilities
Sureties and other contingent liabilities:
– for external parties 3
3
– for Group companies 10 843 10 063
Total 10 846 10 066
Sureties and other contingent liabilities include bank and commercial guar-
antees. The increase compared to last year mainly derives from Parent Com-
pany Guarantees provided by Atlas Copco AB on behalf of its subsidiaries.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 140
A21. Directly owned subsidiaries
2023 2022
Number of
shares
Percent
held
Carrying
value
Number of
shares
Percent
held
Carrying
value
Directly owned product companies
Atlas Copco Airpower n.v., Wilrijk 76 416 100 46 931 76 416 100 46 744
Directly owned customer centers
AGRE Kompressoren GmbH, Steyr 200 000 100 7 200 000 100 7
ALUP Kompressoren AG, Oftringen 3 500 100 25 3 500 100 25
ALUP Kompressoren Polska
sp. z.o.o., Janki
9 000 100 14 9 000 100 14
Atlas Copco (Cyprus) Ltd., Nicosia
99 998
100 0
99 998 100
0
Atlas Copco (India) Private Ltd, Pune 21 731 917 100 933 21 731 917 100 898
Atlas Copco (Ireland) Ltd., Dublin 250 000 100 28 250 000 100 28
Atlas Copco (Malaysia), Sdn. Bhd.,
Shah Alam
1 000 000 100 16 1 000 000 100 13
Atlas Copco (Philippines) Inc., Binan 677 980 100 129 677 980 100 69
Atlas Copco (Schweiz) AG, Studen 8 000 100 65 8 000 100 64
Atlas Copco (South East Asia) Pte.Ltd.,
Singapore
4 500 000 100 35 4 500 000 100 35
Atlas Copco (Thailand) Limited,
Bangkok
1 0/100 1 0 1 0/100 1 0
Atlas Copco Argentina S.A.C.I.,
Buenos Aires
5 120 025 93/100 1 84 5 120 025 93/100 1 84
Atlas Copco Brasil Ltda, Barueri 70 358 841 100 259 70 358 841 100 255
Atlas Copco Canada Inc., Toronto 6 946 100 2 417 6 946 100 2 185
Atlas Copco Chile SpA, Santiago 24 998 100 7 24 998 100 7
Atlas Copco Compressor AB,
556155-2794, Nacka
60 000 100 38 60 000 100 36
Atlas Copco Eastern Africa Limited,
Nairobi
482 999 100 40 482 999 100 40
Atlas Copco Equipment Egypt
S.A.E., Cairo
5 0/100 1 5 5 0/100 1 5
Atlas Copco GmbH, Vienna 1 100 43 1 100 43
Atlas Copco Indoeuropeiska AB,
556155-2760, Nacka
3 500 100 20 3 500 100 20
Atlas Copco KK, Tokyo 100 000 100 41 100 000 100 39
Atlas Copco Kompressorteknik A/S,
Albertslund
4 000 100 5 4 000 100 5
Atlas Copco Maroc SA, Casablanca 3 960 99 6 3 960 99 6
Atlas Copco Polska Sp. z o.o., Warsaw 4 000 100 81 4 000 100 80
2023 2022
Number of
shares
Percent
held
Carrying
value
Number of
shares
Percent
held
Carrying
value
Atlas Copco Services Middle East
OMC, Manama
500 100 31 500 100 24
Atlas Copco Ukraine LLC, Kiev 10 000 000 100 4 10 000 000 100 3
Atlas Copco Venezuela SA,
Valencia
1 592 100 9 1 592 100 9
Sociedade Atlas Copco Portugal
Unipessoal Lda, Porto Salvo
1 100 19 1 100 15
Directly owned holding companies
and others
AB Atlas Diesel, 556019-1610, Nacka 1 000 100 0 1000 100 0
Atlas Copco A/S, Vestby 2 500 100 46 2 500 100 45
Atlas Copco Beheer B.V., Zwijndrecht 15 712 100 76 15 712 100 76
Atlas Copco Finance Belgium bv,
Wilrijk
1 0/100 1 0 1 0/100 1 0
Atlas Copco Finance DAC, Dublin 5 162 000 001 100 55 954 5 162 000 001 100 54 878
Atlas Copco France Holding S.A.,
Frépillon
278 255 100 338 278 255 100 321
Atlas Copco Holding GmbH, Essen 2 100 21 232 2 100 9 377
Atlas Copco Internationaal B.V.,
Zwijndrecht
10 002 100 27 439 10 002 100 27 455
Atlas Copco Järla Holding AB,
556062-0212, Nacka
95 000 100 124 95 000 100 716
Atlas Copco Nacka Holding AB,
556397-7452, Nacka
100 000 100 12 100 000 100 12
Atlas Copco Sickla Holding AB,
556309-5255, Nacka
1 000 100 35 699 1 000 100 35 590
Econus S A, Montevideo – – – 21 582 605 100 17
Industria Försäkringsaktiebolag,
Industria Insurance Company Ltd
516401-7930, Nacka
300 000 100 30 300 000 100 30
JSC Atlas Copco, Moscow 2 644 100 185 2 644 100 185
Oy Atlas Copco Ab, Vantaa 150 100 33 150 100 33
Power Tools Distribution n.v., Hoeselt – –/100 1 – 1 0/100 1 3
Saltus Industrial Technique AB,
559053-5455, Nacka
100 100 0 500 100 0
Carrying amount, Dec. 31 192 460 179 491
1 First figure: percentage held by Parent Company, second figure: percentage held by Atlas Copco Group.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 141
A22. Related parties
Relationships
The Parent Company has related party relationships with its largest share-
holder, its subsidiaries, its associates, its joint ventures and with its Board
members and Group Management.
The Parent Company’s largest shareholder, Investor AB, controls
approximately 22% (22) of the voting rights in Atlas Copco AB.
The subsidiaries that are directly owned by the Parent Company are
presented in note A21 and all directly and indirectly owned operating
subsidiaries are listed on the following pages.
Information about Board members and Group Management is
presented on pages 78–81.
Transactions and outstanding balances
The Group has not had any transactions with Investor AB during the
year other than dividends declared and has no outstanding balances with
Investor AB.
Investor AB has controlling or significant influence in companies which
Atlas Copco AB may have transactions with in the normal course of business.
Any such transactions are made on com mercial terms.
The following table summarizes the Parent Company’s transactions with
Group companies:
2023 2022
Revenues
Dividends 9 739 30 536
Group contribution 3 383 2 949
Interest income 184 38
Expenses
Group contribution 0 –3
Interest expenses –309 –101
Receivables 4 510 4 396
Liabilities 19 231 8 404
Guarantees 10 843 10 063
The following details directly and indirectly owned holding and
opera tional subsidiaries (excluding branches), presented by
country/area of incorporation.
Country/Area Company Location (City)
Algeria SPA Atlas Copco Algérie Algiers
Angola Atlas Copco Angola Ltd Luanda
Argentina Atlas Copco Argentina S.A.C.I. Buenos Aires
Australia Atlas Copco Australia Pty Ltd Blacktown
Ausmedi International Pty. Ltd. Melbourne
Dewatering Holdings No 2 Pty Limited Perth
LEWA Australia PTY LTD East Perth
National Pump and Energy Pty Birtinya
SCS Filtration Melbourne
Country/Area Company Location (City)
Australia Sykes Group Pty Ltd Cardiff
Vortex Group Australasia Pty Ltd Perth
Vortex Group of Companies Pty Ltd Perth
Walker Filtration Pty Ltd Melbourne
Austria AGRE Kompressoren GmbH Steyr
Atlas Copco GmbH Vienna
LEWA Austria GmbH Vienna
Medgas-Technik medical systems GmbH Leisach
Bahrain Atlas Copco Services Middle East OMC Manama
Bangladesh Atlas Copco Bangladesh Ltd. Dhaka
Belgium Atlas Copco Airpower n.v. Wilrijk
Atlas Copco Belgium n.v. Overijse
Atlas Copco Finance Belgium bv Wilrijk
Atlas Copco Rental Europe n.v. Boom
Atlas Copco Support Services n.v. Kontich
Atlas Copco Vacuum Belgium nv Hoeselt
EDMAC Europe n.v. Wilrijk
Geveke Compressor Technology nv Vilvoorde
Geveke Process Technology bv Vilvoorde
International Compressor Distribution n.v. Wilrijk
MultiAir BELUX nv Deinze
Power Tools Distribution n.v. Hoeselt
Bolivia Atlas Copco Bolivia S.A Compresores,
Maquinaria y Servicio Santa Cruz de la Sierra
Brazil Atlas Copco Brasil Indústria e Comércio Ltda. Barueri
Atlas Copco Brasil Ltda. Barueri
Atlas Copco Real Estate Ltda Barueri
Chicago Pneumatic Brasil Ltda. Barueri
Edwards Vácuo Ltda. Sao Paulo
ISRA VISION Comércio, Serviços, Importação e
Exportação Ltda. Barueri
Itubombas Locação, Comércio, Importação e
Exportação Ltda. Itu
LEWA Brasil Equipamentos Ltda. Diadema
Leybold do Brasil Ltda. Jundiaí
Perceptron do Brazil Ltda. Barueri
Pressure Compressores Ltda. Maringa
Bulgaria Atlas Copco Bulgaria EOOD Sofia
Canada Atlas Copco Canada Inc. Toronto
Chicago Pneumatic Tool Co. Canada Ltd. Toronto
Class 1 Incorporated Cambridge
CPC Pumps International Inc. Burlington
Entreprises Larry Inc. Montreal
Lucas Drive – 2352341 Ontario Inc. Burlington
Sutton Drive – 2485283 Ontario Inc. Burlington
Chile Atlas Copco Chile SpA Santiago
Country/Area Company Location (City)
China Atlas Copco (Wuxi) Compressor Co., Ltd. Wuxi
Atlas Copco (Shanghai) Equipment Rental Co., Ltd. Shanghai
Atlas Copco Industrial Technique (Shanghai) Co., Ltd. Shanghai
Atlas Copco (China) Investment Co., Ltd. Shanghai
Atlas Copco (Shanghai) Process Equipment
Co., Ltd. Shanghai
Atlas Copco (Shanghai) Trading Co., Ltd. Shanghai
Bolaite (Shanghai) Compressor. Co., Ltd Shanghai
Bozhong (Shandong) Industrial Equipment Co., Ltd. Zibo
Chinco Vacuum Technique (Zibo) Co., Ltd. Zibo
CSK China Co. Ltd. Wuxi
CSK Xian China Co. Ltd. Xian
Edmac (Shanghai) Trading Co., Ltd. Shanghai
Edwards Technologies Trading (Shanghai)
Company Ltd. Shanghai
Edwards Technologies Vacuum Engineering
(Qingdao) Company Ltd. Qingdao
Edwards Technologies Vacuum Engineering
(Shanghai) Company Ltd. Shanghai
Edwards Technologies Vacuum Engineering
(Xian) Company Ltd. Xian
Factory for Industrial Air Compressors
(Jiangmen) Co., Ltd. Jiangmen
ISRA VISION (Shanghai) Co. Ltd. Shanghai
Kunshan Q-Tech Air System Technologies Ltd. Kunshan
LEWA (Dalian) Fluid Technology Co., Ltd. Dalian
LEWA Pumps (Dalian) Co., Ltd. Dalian
Leybold Equipment (Tianjin) Co., Ltd. Tianjin
Leybold (Tianjin) International Trade Co.Ltd. Tianjin
Linghein (Shanghai) Gas Technologies Co., Ltd. Shanghai
Liutech Compressor Air System (Shanghai)
Co., Ltd Shanghai
Liutech Machinery Equipment Co., Ltd. Liuzhou
Liuzhou Tech Machinery Co., Ltd. Liuzhou
Meditech (Shanghai) Gas Technology Co., Ltd. Shanghai
Perceptron Metrology Technology (Shanghai)
Co., Ltd. Shanghai
Q-Tech (Shanghai) Gas Equipment Co.,Ltd. Shanghai
Shandong Meditech Technology Co., Ltd. Jinan
Shanghai Beacon Medaes Medical Gas
Engineering Consulting Co., Ltd. Shanghai
Shanghai Tooltec Industrial Tool Co., Ltd. Shanghai
Suzhou Since Gas Technology Co., Ltd. Suzhou
Pan-Asia Gas Technologies (Wuxi) Co., Ltd. Wuxi
Wuxi Pneumatech Air/Gas Purity Equipment
Co., Ltd. Wuxi
Wuxi Shengda Air/Gas Purity Equipment
Co., Ltd. Wuxi
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 142
A22. Related parties, continued
Country/Area Company Location (City)
Colombia Atlas Copco Colombia Ltda Bogota
Cyprus Atlas Copco (Cyprus) Ltd. Nicosia
Czech Republic ALUP CZ spol. S.r.o Breclav
Atlas Copco s.r.o. Prague
Atlas Copco Services s.r.o. Brno
Edwards s.r.o. Lutin
Next Metrology Software s.r.o. Prague
Schneider Airsystems s.r.o. Line
Denmark Atlas Copco Kompressorteknik A/S Albertslund
Oxymat A/S Helsinge
RENO A/S Aarhus
Egypt Atlas Copco Equipment Egypt S.A.E. Cairo
Atlas Copco Service Egypt Cairo
Finland Oy Atlas Copco Ab Vantaa
Oy Atlas Copco Kompressorit Ab Vantaa
Oy Atlas Copco Tools Ab Vantaa
France Atlas Copco Applications Industrielles S.A.S. Frépillon
Atlas Copco Crépelle S.A.S. Lille
Atlas Copco France Holding S.A. Frépillon
Atlas Copco France SAS Frépillon
Edwards SAS Herblay
ETS Georges Renault S.A.S. Saint-Herblain
Exlair S.A.S. Frépillon
FITEC Tarnos
LEWA France SAS Neuville-sur-Oise
Leybold France SAS Bourg-Les-Valence
MultiAir France S.A.S Chambly
Perceptron EURL Montigny le Bretonneux
Seti-Tec S.A.S. Collegien
Germany Arpuma GmbH Kerpen
Atlas Copco Beteiligungs GmbH ¹ Essen
Atlas Copco Energas GmbH ¹ Cologne
Atlas Copco Holding GmbH ¹ Essen
Atlas Copco IAS GmbH ¹ Bretten
Atlas Copco Industry GmbH ¹ Essen
Atlas Copco Kompressoren und
Drucklufttechnik GmbH ¹ Essen
Atlas Copco Power Technique GmbH ¹ Essen
Atlas Copco Tools Central Europe GmbH ¹ Essen
CVS Engineering GmbH ¹ Rheinfelden (Baden)
Desoutter GmbH ¹ Maintal
DF Druckluft-Fachhandel GmbH ¹ Herrenberg
Dipotec GmbH ¹ Neustadt a.d. Donau
Edwards GmbH Feldkirchen
Country/Area Company Location (City)
Germany Ehrler & Beck Vakuum- und Drucklufttechnik GmbH ¹ Renningen
EXTEND3D GmbH ¹ Münich
ISRA Immobilie Darmstadt GmbH ¹ Darmstadt
ISRA Immobilie Herten GmbH ¹ Darmstadt
ISRA PARSYTEC GmbH ¹ Aachen
ISRA SURFACE VISION GmbH ¹ Herten
ISRA VISION GmbH ¹ Darmstadt
ISRA VISION PARSYTEC AG ¹ Aachen
KDS Kompressoren- und Druckluftservice GmbH ¹ Essen
LEWA GmbH ¹ Leonberg
LEWA Deutschland GmbH ¹ Leonberg
Leybold Dresden GmbH Dresden
Leybold GmbH Cologne
Leybold Real Estate GmbH ¹ Cologne
Medgas-Technik GmbH Medical-Technology ¹ Berndroth
metronom Automation GmbH ¹ Mainz
Multiair Germany GmbH ¹ Reutlingen
nano-purification solutions GmbH ¹ Krefeld
Perceptron GmbH ¹ Munich
PMH Druckluft GmbH ¹ Erkelenz
Pumpenfabrik Wangen GmbH ¹ Wangen I'm Allgau
QUISS Qualitäts-Inspektionssysteme
und Service GmbH ¹ Puchheim
Scheugenpflug GmbH ¹ Neustadt a.d. Donau
soft2tec GmbH ¹ Russelsheim
Synatec GmbH ¹ Leinfelden-Echterdingen
Greece Atlas Copco Hellas AE Koropi
Hong Kong Atlas Copco China/Hong Kong Ltd Hong Kong
Hungary Atlas Copco Hungary Kft Szigetszentmiklós
India Atlas Copco (India) Private Ltd. Pune
Edwards India Private Ltd. Pune
HHV Pumps Private Limited Bangalore
ISRA VISION INDIA Private Limited Mumbai
LEWA Pumps India Pvt Ltd. Chennai
Leybold India Pvt Ltd. Bangalore
Perceptron Non-Contact Metrology
Solutions Pvt Ltd. Chennai
Indonesia PT Atlas Copco Indonesia Jakarta
Iraq Atlas Copco Iraq LLC Erbil
Ireland Atlas Copco (Ireland) Ltd. Dublin
Atlas Copco Finance DAC Dublin
Edwards Vacuum Technology Ireland Ltd Dublin
Provac Limited Wexford
Israel Edwards Israel Vacuum Ltd Kiryat Gat
Country/Area Company Location (City)
Italy ABAC Aria Compressa S.r.l Robassomero
Atlas Copco BLM S.r.l. Milan
Atlas Copco Italia S.r.l. Milan
C.P. Service SRL Naples
Ceccato Aria Compressa S.r.l Montecchio Maggiore
Desoutter Industrial Tools SrL Lissone
Edwards S.r.l. Milan
Eurochiller S.r.l. Castello d'Agogna (Pv)
Fiac Professional Air Compressors S.r.l. Sasso Marconi
LEWA Italy S.r.l. Rho
Leybold Italia S.r.l Milan
MultiAir Italia S.r.l Montecchio Maggiore
SCB S.r.l. Villar San Costanzo
Varisco S.r.l. Padova
Japan Atlas Copco KK Tokyo
Edwards Japan Ltd Chiba
Fuji Industrial Technique Co., Ltd. Osaka
Leybold Japan Co.Ltd. Kohoku-Ku,Yokohama-Shi
Kazakhstan Atlas Copco AirPower Central Asia LLP Almaty
Kenya Atlas Copco Eastern Africa Limited Nairobi
Latvia Atlas Copco Baltic SIA Marupes Novads
Lebanon Atlas Copco Levant S.A.L. Beirut
Luxembourg Atlas Copco Finance S.á.r.l. Luxembourg
Malaysia Atlas Copco (Malaysia) Sdn. Bhd. Shah Alam
Geveke Malaysia Snd. Bhd. Shah Alam
Geveke Oil & Gas Sdn. Bhd. Shah Alam
Nano-Purification Solutions (Malaysia) Sdn Bhd Johor Bahru
Vacuum Technique Malaysia Sdn. Bhd. Puchong
Mexico Atlas Copco Mexicana S.A. de C.V. Tlalnepantla
Desarrollos Técnologicos ACMSA S.A. de C.V. Tlalnepantla
Desoutter Tools Mexico SA de CV Tlalnepantla
Vacuum Technique Mexico Monterrey
Morocco Atlas Copco Maroc SA Casablanca
Myanmar Atlas Copco Services Myanmar Co., Ltd. Yangon
Netherlands Alup Kompressoren BV Oss
Atlas Copco Beheer B.V. Zwijndrecht
Atlas Copco Internationaal B.V. Zwijndrecht
Creemers Compressors B.V. Oss
Eco Ketelservice Verhuur B.V. Tilburg
Eco Steam Trading & Consultancy B.V. Tilburg
E.K.S. Holding B.V. Tilburg
Geveke BV Amsterdam
Geveke Werktuigbouw BV Amsterdam
Leybold Nederland B.V. Utrecht
1 Legal regulation allows for exemption from local statutory requirements acc. to sec 264 of the German Commercial Code and such
exemption has been applied for German subsidiaries for financial year 2021–2023.
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2023 143
Country/Area Company Location (City)
New Zealand Atlas Copco (N.Z.) Ltd. Auckland
Conhur Limited Takanini
Exlair (NZ) Limited Auckland
Sykes New Zealand Limited Auckland
Nigeria Atlas Copco Nigeria Ltd. Lagos
Norway Atlas Copco A/S Vestby
Atlas Copco Kompressorteknikk A/S Vestby
Atlas Copco Tools A/S Vestby
Berema A/S Vestby
Pakistan Atlas Copco Pakistan (Private) Limited Lahore
Peru Atlas Copco Perú S.A.C. Lima
Philippines Atlas Copco (Philippines) Inc. Binan
Poland ALUP Kompressoren Polska sp. z.o.o. Janki
Atlas Copco Polska Sp. z o.o. Warsaw
Vector Sp. z o.o. Tarnowo Podgórne
Portugal Sociedade Atlas Copco de Portugal
Unipessoal Lda Porto Salvo
Romania Atlas Copco Romania S.R.L. Bucharest
Scheugenpflug S.R.L. Sibiu
Russia JSC Atlas Copco Moscow
Serbia Atlas Copco Srbija doo Belgrade
Singapore Atlas Copco (South East Asia) Pte. Ltd Singapore
Geveke International Pte Ltd Singapore
LEWA Singapore Pte. Ltd. Singapore
Leybold Singapore Pte Ltd Singapore
Nano-Purification Solutions Asia Pacific Pte Ltd Singapore
Vacuum Technique Singapore Pte Ltd Singapore
Slovakia ACJ s.r.o. Samorin
Atlas Copco s.r.o Bratislava
ISRA VISION s.r.o. Bratislava
Oxymat Slovakia SrO Vadovce
Perceptron Slovensko s.r.o. Bratislava
Schneider Airsystems s.r.o. Nitra
Slovenia Atlas Copco d.o.o. Trzin
South Africa Atlas Copco Industrial South Africa (Pty) Ltd Boksburg
Rand Air South Africa (Pty) Ltd Boksburg
South Korea Atlas Copco Korea Co., Ltd. Seongnam
CP Tools Korea Co., Ltd. Anyang
CSK Inc. Yongin
Edwards Korea Ltd Cheonan
ISRA VISION Korea Co. Ltd Seoul
LEWA Korea Co., Ltd. Seoul
Leybold Korea Ltd Bundang
Spain Aire Comprimido Industrial Iberia, S.L. Madrid
Atlas Copco S.A.E. Madrid
Bostran 21 SL Santa Margarida
Country/Area Company Location (City)
Spain Grupos Electrógenos Europa, S.A. Zaragoza
IBVC Vacuum, S.L.U. Madrid
LEWA Hispania S.L. Madrid
Leybold Hispanica S.A. Cornellá de Llobregat
Sweden Atlas Copco Compressor AB Nacka
Atlas Copco Industrial Technique AB Nacka
Atlas Copco Järla Holding AB Nacka
Atlas Copco Nacka Holding AB Nacka
Atlas Copco Sickla Holding AB Nacka
Industria Försäkringsaktiebolag, Industria
Insurance Company Ltd Nacka
Switzerland ALUP Kompressoren AG Oftringen
Atlas Copco (Schweiz) AG Studen
LEWA Switzerland AG Reinach
Leybold Schweiz AG Steinhausen
Medgas-Technik Schweiz AG Sankt-Gallen
Photonfocus AG Lachen
Taiwan Atlas Copco Taiwan Ltd. Taoyuan
CSKT Inc. Jubei
Edwards Technologies Ltd Jhunan
Leybold Taiwan Ltd Zhubei
Thailand Atlas Copco (Thailand) Limited Bangkok
Türkiye Atlas Copco Makinalari Imalat AS Istanbul
Chicago Pneumatic Endüstriyel Ürünler
Ticaret A.Ş Istanbul
Dost Kompresör Endüstri Makinaları İmal
Bakım ve Ticaret A.Ş Istanbul
Ekomak Endüstriyel Kompresör Makine
Sanayi ve Ticaret A.Ş Istanbul
Hamamcıoğlu Makina Sanayi ve Ticaret A.Ş. Istanbul
ISRA VISION Yapay Görme Ve Otomasyon
San. Ve Tı̇c. A.ş Istanbul
Multiair Endüstriyel Hava Ekipmanları
Ticaret A.Ş. Istanbul
Tekser Endüstriyel Cihazlar Sanayi ve Ticaret A.Ş. Istanbul
Ukraine Atlas Copco Ukraine LLC Kiev
United Arab Allightprimax FZCO Dubai
Emirates
Atlas Copco Middle East FZE Dubai
LEWA Middle East FZE Sharjah
United Air Compressors and Tools Limited Warrington
Kingdom
Airflow Compressors and Pneumatics Limited Warrington
Associated Compressor Engineers Limited Stockport
Atlas Copco IAS UK Limited Flintshire
Atlas Copco Ltd. Hemel Hempstead
Atlas Copco UK Holdings Ltd. Hemel Hempstead
BeaconMedaes Ltd Markham Vale
C.A.S products Limited Bolton
Edwards Ltd. Burgess Hill
A22. Related parties, continued
Country/Area Company Location (City)
United Glaston Compressor Services Limited Hemel Hempstead
Kingdom
Leybold UK Ltd. Chessington
Maziak Compressor Services Limited Wellingborough
Maziak Holdings 2022 Limited Wellingborough
Maziak Holdings Limited Wellingborough
Nano Purification Solutions Ltd Gateshead
Precision Pneumatics Ltd Liverpool
Tentec Ltd. Wolverhampton
Walker Filtration Ltd. UK Washington
Wearside Pneumatics Ltd Newcastle
U.S.A Air & Gas Solutions LLC Charlotte
Atlas Copco Compressors LLC Rock Hill
Atlas Copco Comptec LLC Voorheesville
Atlas Copco IAS LLC Auburn Hills
Atlas Copco Mafi-Trench Company LLC Santa Maria
Atlas Copco North America LLC Parsippany
Atlas Copco Rental LLC Laporte
Atlas Copco Tools & Assembly Systems LLC Auburn Hills
BeaconMedaes LLC Rock Hill
C H Spencer LLC Salt Lake City
Chicago Pneumatic International Inc. Rock Hill
Chicago Pneumatic Tool Company LLC Rock Hill
Dekker Vacuum Technologies Inc Michigan City
Edwards Semiconductor Solutions LLC Saugerties
Edwards Vacuum, LLC Sanborn
Henrob Corporation New Hudson
Industrial Flow North America LLC Hollistone
Leybold USA Inc. Wilmington
Mid-South Engine & Power Systems LLC White Oak
Montana Instruments Corporation Bozeman
Perceptron Inc. Plymouth
Perceptron Global Inc. Plymouth
Perceptron Software Technology , Inc. Plymouth
Powerhouse Equipment & Engineering Co. Inc. Delanco
Power Technique North America LLC Rock Hill
Primax USA, INC. Charlotte
Quincy Compressor LLC Bay Minette
Scheugenpflug Inc. Kennesaw
Vacuum Technique LLC Michigan City
Walker Filtration Inc. US Erie
Uzbekistan Atlas Copco Compressor and Power Technique Tashkent
Venezuela Atlas Copco Venezuela SA Valencia
Vietnam Atlas Copco Vietnam Company Ltd. Hanoi
Zambia Atlas Copco Industrial Zambia Limited Kitwe
Introduction
This is Atlas Copco Group
The year in review
Financials
Atlas Copco Group
Consolidated income
statement
Consolidated statement of
comprehensive income
Consolidated balance sheet
Consolidated statement of
changes in equity
Consolidated statement of
cash flows
Notes
• Parent company
Other information
Signatures of the Board of Directors
The Parent Company financial statements have been prepared in accordance
with generally accepted accounting principles in Sweden and the consoli-
dated financial statements have been prepared in accordance with Interna-
tional Accounting Standards as prescribed by the European Parliament and
the Regulation (EC) No 1606/2002 dated July 19, 2002 on the application of
International Accounting Standards. The Parent Company financial state-
ments and the consolidated financial statements give a true and fair view
of the Parent Company’s and the Group’s financial position and results of
operations.
The administration report for the Group and Parent Company provides
a true and fair overview of the development of the Group’s and Parent
Company’s business activities, financial position and results of operations
as well as the significant risks and uncertainties which the Parent Company
and its subsidiaries are exposed to.
The Annual Report also contains the Group’s and Parent Company’s statutory
sustainability report in accordance with the Swedish Annual Accounts Act.
Nacka, Atlas Copco AB
Hans Stråberg Jumana Al-Sibai Johan Forssell Heléne Mellquist Anna Ohlsson-Leijon
Chair Board member Board member Board member Board member
Mats Rahmström Gordon Riske Peter Wallenberg Jr Mikael Bergstedt Benny Larsson
Board member Board member Board member Board member Board member
President and CEO Employee representative Employee representative
Stockholm the date as evidenced by our electronic signature
Ernst & Young AB
Erik Sandström
Authorized Public Accountant
Atlas Copco AB is required to publish information included in this annual report in accordance
with the Swedish Securities Market Act. The information was made public on March 21, 2024.
SignatureS of the Board of directorS
atlas copco group 2023 144
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
• Signatures of the Board
of Directors
Auditor's report
Financial definitions
Four years in summary
Contact information
Auditor's report
To the general meeting of the shareholders of Atlas Copco AB,
corporate identity number 556014-2720
Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts of Atlas
Copco AB except for the corporate governance statement on pages 74–83
and the statutory sustainability report on pages 5–11 and 32–65, and
quarterly data on page 101 for the year 2023. The annual accounts and
consolidated accounts of the company are included on pages 5–65, 67–71,
and 74–144 in this document.
In our opinion, the annual accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material respects, the
financial position of the parent company as of 31 December 2023 and its
financial performance and cash flow for the year then ended in accordance
with the Annual Accounts Act. The consolidated accounts have been
prepared in accordance with the Annual Accounts Act and present fairly, in all
material respects, the financial position of the group as of 31 December 2023
and their financial performance and cash flow for the year then ended in
accordance with International Financial Reporting Standards (IFRS
Accounting Standards), as adopted by the EU, and the Annual Accounts Act.
Our opinions do not cover the corporate governance statement on pages
74–83, and the statutory sustainability report on pages 5–11 and 32–65. The
statutory administration report is consistent with the other parts of the
annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders
adopts the income statement and balance sheet for the parent company and
the group.
Our opinions in this report on the annual accounts and consolidated
accounts are consistent with the content of the additional report that has
been submitted to the parent company's audit committee in accordance with
the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Standards on
Auditing (ISA) and generally accepted auditing standards in Sweden. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities section. We are independent of the parent company and the
group in accordance with professional ethics for accountants in Sweden and
have otherwise fulfilled our ethical responsibilities in accordance with these
requirements. This includes that, based on the best of our knowledge and
belief, no prohibited services referred to in the Audit Regulation (537/2014)
Article 5.1 have been provided to the audited company or, where applicable,
its parent company or its controlled companies within the EU.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in our professional
judgment, were of most significance in our audit of the annual accounts and
consolidated accounts of the current period. These matters were addressed
in the context of our audit of, and in forming our opinion thereon, the annual
accounts and consolidated accounts as a whole, but we do not provide a
separate opinion on these matters. For each matter below, our description of
how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s
responsibilities for the audit of the financial statements section of our report,
including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the
risks of material misstatement of the financial statements. The results of our
audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying
financial statements.
Valuation of goodwill
Description
As at December 31, 2023, the total value of goodwill amounts to 45.4 billion
SEK and is allocated to the group’s different cash generating units. Goodwill
must be tested for impairment at least annually and whenever there are
indicators of impairment. The test is carried out by comparing the
recoverable amount to the carrying value. To calculate the recoverable
amount, management apply significant judgment and estimates regarding
future cash flows, terminal growth rate and discount rates. The impairment
tests for 2023 did not result in any impairment write off.
Disclosures related to the group’s material accounting principles and key
sources of uncertainty in estimates and judgements are provided in note 1
and disclosures related to goodwill and the impairment test performed are
provided in note 11.
Based on carrying value of the goodwill and the high degree of
management estimate required to perform the impairment tests, we have
assessed the accounting for the valuation of goodwill as a key audit matter in
our audit.
How our audit addressed this key audit matter
In the audit, we have evaluated the group’s process for conducting
impairment tests. Based on established criteria, we have examined how the
group identifies cash-generating units.
With support from our internal valuation specialists, we have evaluated
the valuation methods used. We have assessed the reasonableness of
assumptions, conducted sensitivity analysis, and compared them to historical
outcomes as well as external sources and industry benchmarks.
Finally, we have assessed the appropriateness of the disclosures provided
in the annual report.
Revenue recognition
Description
The group recognize revenue from a wide range of geographical markets
and the revenues are generated from product- and product related offerings
ranging from equipment, service, and rental to the customers. The
appropriate timing of revenue recognition can vary from a point in time to
recognition over time. Judgement may be required in assessing if control has
been transferred to the customer and to determine the satisfaction of
performance obligations.
The group’s decentralized organization where revenues are generated
from a large number of subsidiaries further increases the complexity of
ensuring that the revenue recognition principles are consistently applied
across the group.
Disclosures related to the group’s material accounting principles and key
sources of uncertainty in estimates and judgements are provided in note 1
and note 3 provides disclosures regarding revenue disaggregated by
operating segment and geography.
Based on the above, we have assessed the revenue recognition as a key
audit matter in our audit.
How our audit addressed this key audit matter
In our audit we have assessed the group’s processes for revenue
recognition. Further, we have reviewed the group’s accounting manual and
assessed whether the policies for revenue recognition are in accordance
with the applicable accounting standards.
We have obtained an understanding of the different types of significant
revenue contracts and evaluated the identified performance obligations and
determinations made regarding when performance obligations are
considered satisfied. In addition, we have performed detailed revenue
auditor'S report
atlas copco group 2023 145
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
• Auditor's report
Financial definitions
Four years in summary
Contact information
transaction testing and revenue data analytical procedures to assess the
revenue recognition.
We have assessed the appropriateness of the disclosures provided in the
annual report.
Accounting for income taxes
Description
Atlas Copco is a global group with subsidiaries world-wide. The accounting
for income taxes requires adherence to local tax legislation which often can
be complex and allow for different interpretations and judgement. The
group’s subsidiaries are regularly subject to tax audits in which the local tax
authorities might challenge the group’s interpretation of the local legislation.
In instances where the tax authorities are of a different opinion of how to
interpret the tax legislation the outcome is often dependent on negotiations
with the local tax authorities or legal proceedings. In order to account for
income taxes in these instances, management may have to apply significant
estimates. Changes to these estimates can have a material effect on the
income tax reported.
Disclosures related to the group’s material accounting principles and key
sources of uncertainty in estimates and judgements are provided in note 1
and disclosures related to taxes are provided in note 8.
Based on the above, we have assessed accounting for income taxes as a
key audit matter in our audit.
How our audit addressed this key audit matter
We have evaluated the group’s process for accounting for income taxes. We
have reviewed communication between Atlas Copco and the tax authorities
for significant uncertain income tax matters. Our internal tax specialists have
been engaged to evaluate the assessments and interpretations made by the
group. We have also assessed the reasonability of the accounting for these
matters by comparisons to historical outcome in similar cases and by
obtaining assessments from the group’s external tax advisors where
appropriate.
We have assessed the appropriateness of the disclosures provided in the
annual report.
Other Information than the annual accounts and consolidated accounts
This document also contains other information than the annual accounts
and consolidated accounts and is found on pages 1–4, 72–73, and 149–151
as well as quarterly data on page 101. The other information also includes
the remuneration report which we obtained before the date of this auditor’s
report. The Board of Directors and the Managing Director are responsible for
this other information.
Our opinion on the annual accounts and consolidated accounts does not
cover this other information and we do not express any form of assurance
conclusion regarding this other information.
In connection with our audit of the annual accounts and consolidated
accounts, our responsibility is to read the information identified above and
consider whether the information is materially inconsistent with the annual
accounts and consolidated accounts. In this procedure we also take into
account our knowledge otherwise obtained in the audit and assess whether
the information otherwise appears to be materially misstated.
If we, based on the work performed concerning this information, conclude
that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the
preparation of the annual accounts and consolidated accounts and that they
give a fair presentation in accordance with the Annual Accounts Act and,
concerning the consolidated accounts, in accordance with IFRS Accounting
Standards as adopted by the EU. The Board of Directors and the Managing
Director are also responsible for such internal control as they determine is
necessary to enable the preparation of annual accounts and consolidated
accounts that are free from material misstatement, whether due to fraud or
error.
In preparing the annual accounts and consolidated accounts, The Board
of Directors and the Managing Director are responsible for the assessment
of the company’s and the group’s ability to continue as a going concern. They
disclose, as applicable, matters related to going concern and using the going
concern basis of accounting. The going concern basis of accounting is
however not applied if the Board of Directors and the Managing Director
intends to liquidate the company, to cease operations, or has no realistic
alternative but to do so.
The Audit Committee shall, without prejudice to the Board of Director’s
responsibilities and tasks in general, among other things oversee the
company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether the annual
accounts and consolidated accounts as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with ISAs and
generally accepted auditing standards in Sweden will always detect a
material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users
taken on the basis of these annual accounts and consolidated accounts.
As part of an audit in accordance with ISAs, we exercise professional
judgment and maintain professional scepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the annual
accounts and consolidated accounts, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinions. The risk of not detecting a material misstatement result-
ing from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of the company’s internal control relevant to our
audit in order to design audit procedures that are appropriate in the cir-
cumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reason-
ableness of accounting estimates and related disclosures made by the
Board of Directors and the Managing Director.
• Conclude on the appropriateness of the Board of Directors’ and the Man-
aging Director’s use of the going concern basis of accounting in preparing
the annual accounts and consolidated accounts. We also draw a conclu-
sion, based on the audit evidence obtained, as to whether any material
uncertainty exists related to events or conditions that may cast significant
doubt on the company’s and the group’s ability to continue as a going con-
cern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the
annual accounts and consolidated accounts or, if such disclosures are
inadequate, to modify our opinion about the annual accounts and consoli-
dated accounts. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or
conditions may cause a company and a group to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the annual
accounts and consolidated accounts, including the disclosures, and
whether the annual accounts and consolidated accounts represent the
underlying transactions and events in a manner that achieves fair presen-
tation.
• Obtain sufficient and appropriate audit evidence regarding the financial
information of the entities or business activities within the group to
express an opinion on the consolidated accounts. We are responsible for
the direction, supervision and performance of the group audit. We remain
solely responsible for our opinions.
Auditor's report, continued
auditor'S report
atlas copco group 2023 146
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
• Auditor's report
Financial definitions
Four years in summary
Contact information
We must inform the Board of Directors of, among other matters, the planned
scope and timing of the audit. We must also inform of significant audit
findings during our audit, including any significant deficiencies in internal
control that we identified.
We must also provide the Board of Directors with a statement that we
have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
actions taken to eliminate threats or related safeguards applied.
From the matters communicated with the Board of Directors, we
determine those matters that were of most significance in the audit of the
annual accounts and consolidated accounts, including the most important
assessed risks for material misstatement, and are therefore the key audit
matters. We describe these matters in the auditor’s report unless law or
regulation precludes disclosure about the matter.
Report on other legal and regulatory requirements
Report on the audit of the administration and the proposed
appropriations of the company’s profit or loss
Opinions
In addition to our audit of the annual accounts and consolidated accounts,
we have also audited the administration of the Board of Directors and the
Managing Director of Atlas Copco AB for the year 2023 and the proposed
appropriations of the company’s profit or loss.
We recommend to the general meeting of shareholders that the profit be
appropriated in accordance with the proposal in the statutory administration
report and that the members of the Board of Directors and the Managing
Director be discharged from liability for the financial year.
Basis for opinions
We conducted the audit in accordance with generally accepted auditing
standards in Sweden. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities section. We are independent of
the parent company and the group in accordance with professional ethics
for accountants in Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors is responsible for the proposal for appropriations of
the company’s profit or loss. At the proposal of a dividend, this includes an
assessment of whether the dividend is justifiable considering the
requirements which the company's and the group’s type of operations, size
and risks place on the size of the parent company's and the group’s equity,
consolidation requirements, liquidity and position in general.
The Board of Directors is responsible for the company’s organization and
the administration of the company’s affairs. This includes among other things
continuous assessment of the company’s and the group’s financial situation
and ensuring that the company's organization is designed so that the
accounting, management of assets and the company’s financial affairs
otherwise are controlled in a reassuring manner. The Managing Director
shall manage the ongoing administration according to the Board of
Directors’ guidelines and instructions and among other matters take
measures that are necessary to fulfill the company’s accounting in
accordance with law and handle the management of assets in a reassuring
manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and thereby our
opinion about discharge from liability, is to obtain audit evidence to assess
with a reasonable degree of assurance whether any member of the Board of
Directors or the Managing Director in any material respect:
• has undertaken any action or been guilty of any omission which can give
rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act, the
Annual Accounts Act or the Articles of Association.
Our objective concerning the audit of the proposed appropriations of the
company’s profit or loss, and thereby our opinion about this, is to assess with
reasonable degree of assurance whether the proposal is in accordance with
the Companies Act.
Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with generally accepted auditing
standards in Sweden will always detect actions or omissions that can give
rise to liability to the company, or that the proposed appropriations of the
company’s profit or loss are not in accordance with the Companies Act.
As part of an audit in accordance with generally accepted auditing
standards in Sweden, we exercise professional judgment and maintain
professional scepticism throughout the audit. The examination of the
administration and the proposed appropriations of the company’s profit or
loss is based primarily on the audit of the accounts. Additional audit
procedures performed are based on our professional judgment with starting
point in risk and materiality. This means that we focus the examination on
such actions, areas and relationships that are material for the operations and
where deviations and violations would have particular importance for the
company’s situation. We examine and test decisions undertaken, support for
decisions, actions taken and other circumstances that are relevant to our
opinion concerning discharge from liability. As a basis for our opinion on the
Board of Directors’ proposed appropriations of the company’s profit or loss
we examined the Board of Directors’ reasoned statement and a selection of
supporting evidence in order to be able to assess whether the proposal is in
accordance with the Companies Act.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and consolidated accounts,
we have also examined that the Board of Directors and the Managing
Director have prepared the annual accounts and consolidated accounts in a
format that enables uniform electronic reporting (the ESEF report) pursuant
to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528)
for Atlas Copco AB for the financial year 2023.
Our examination and our opinion relate only to the statutory
requirements.
In our opinion, the ESEF report has been prepared in a format that, in all
material respects, enables uniform electronic reporting.
Basis for opinion
We have performed the examination in accordance with FAR’s
recommendation RevR 18 Examination of the ESEF report. Our responsibility
under this recommendation is described in more detail in the Auditors’
responsibility section. We are independent of Atlas Copco AB in accordance
with professional ethics for accountants in Sweden and have otherwise
fulfilled our ethical responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the
preparation of the ESEF report in accordance with Chapter 16, Section 4(a) of
the Swedish Securities Market Act (2007:528), and for such internal control
that the Board of Directors and the Managing Director determine is
necessary to prepare the ESEF report without material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance whether the ESEF report
Auditor's report, continued
auditor'S report
atlas copco group 2023 147
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
• Auditor's report
Financial definitions
Four years in summary
Contact information
is in all material respects prepared in a format that meets the requirements
of Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528),
based on the procedures performed.
RevR 18 requires us to plan and execute procedures to achieve
reasonable assurance that the ESEF report is prepared in a format that
meets these requirements.
Reasonable assurance is a high level of assurance, but it is not a guarantee
that an engagement carried out according to RevR 18 and generally
accepted auditing standards in Sweden will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken
on the basis of the ESEF report.
The audit firm applies ISQM 1 Quality Management for Firms that Perform
Audits or Reviews of Financial Statements, or other Assurance or Related
Services Engagements which requires the firm to design, implement and
operate a system of quality management, including policies and procedures
regarding compliance with professional ethical requirements, professional
standards and applicable legal and regulatory requirements.
The examination involves obtaining evidence, through various
procedures, that the ESEF report has been prepared in a format that enables
uniform electronic reporting of the annual and consolidated accounts. The
procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement in the report, whether due
to fraud or error. In carrying out this risk assessment, and in order to design
audit procedures that are appropriate in the circumstances, the auditor
considers those elements of internal control that are relevant to the
preparation of the ESEF report by the Board of Directors and the Managing
Director, but not for the purpose of expressing an opinion on the
effectiveness of those internal controls. The examination also includes an
evaluation of the appropriateness and reasonableness of assumptions made
by the Board of Directors and the Managing Director.
The procedures mainly include a validation that the ESEF report has been
prepared in a valid XHTML format and a reconciliation of the ESEF report with
the audited annual accounts and consolidated accounts.
Furthermore, the procedures also include an assessment of whether the
consolidated statement of financial performance, financial position, changes
in equity, cash flow and disclosures in the ESEF report have been marked
with iXBRL in accordance with what follows from the ESEF regulation.
The auditor’s examination of the corporate governance
statement
The Board of Directors is responsible for that the corporate governance
statement on pages 74–83 has been prepared in accordance with the Annual
Accounts Act.
Our examination of the corporate governance statement is conducted in
accordance with FAR´s standard RevR 16 The auditor´s examination of the
corporate governance statement. This means that our examination of the
corporate governance statement is different and substantially less in scope
than an audit conducted in accordance with International Standards on
Auditing and generally accepted auditing standards in Sweden. We believe
that the examination has provided us with sufficient basis for our opinions.
A corporate governance statement has been prepared. Disclosures in
accordance with chapter 6 section 6 the second paragraph points 2–6 of the
Annual Accounts Act and chapter 7 section 31 the second paragraph the
same law are consistent with the other parts of the annual accounts and
consolidated accounts and are in accordance with the Annual Accounts Act.
The auditor’s opinion regarding the statutory sustainability report
The Board of Directors is responsible for the statutory sustainability report
on pages 5–11 and 32–65, and that it is prepared in accordance with the
Annual Accounts Act.
Our examination has been conducted in accordance with FAR’s auditing
standard RevR 12 The auditor´s opinion regarding the statutory sustainability
report. This means that our examination of the statutory sustainability report
is different and substantially less in scope than an audit conducted in
accordance with International Standards on Auditing and generally accepted
auditing standards in Sweden. We believe that the examination has provided
us with sufficient basis for our opinion.
A statutory sustainability report has been prepared.
Ernst & Young AB with Erik Sandström as auditor in charge, Box 7850,
103 99 Stockholm, was appointed auditor of Atlas Copco AB by the general
meeting of the shareholders on 27 April 2023 and has been the company’s
auditor since 23 April 2020.
Stockholm the date as evidenced by our electronic signature
Ernst & Young AB
Erik Sandström
Authorized Public Accountant
Auditor's report, continued
auditor'S report
atlas copco group 2023 148
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
• Auditor's report
Financial definitions
Four years in summary
Contact information
Financial definitions *
Reference is made in the Annual Report to a number of financial performance measures which are not defined according to IFRS.
These performance measures provide complementary information and are used to help investors as well as Group Management
analyze the company’s operations and facilitate an evaluation of the performance. Since not all companies calculate financial
performance measures in the same manner, these are not always comparable with measures used by other companies. These
financial performance measures should therefore not be regarded as a replacement for measures as defined according to IFRS.
Adjusted operating profit
Operating profit (earnings before interest and tax),
excluding items affecting comparability.
Adjusted operating profit margin
Operating profit margin excl. items affecting
comparability.
Average number of shares outstanding
The weighted average number of shares outstanding
before or after dilution. Shares held by Atlas Copco are
not included in the number of shares outstanding. The
dilutive effects arise from the stock options that are
settled in shares or that at the employees’ choice can be
settled in shares or cash in the share based incentive
programs. The stock options have a dilutive effect when
the average share price during the period exceeds the
exercise price of the options.
Capital employed
Average total assets less non-interest-bearing liabilities/
provisions. Capital employed for the business areas
excludes cash, tax liabilities and tax receivables.
Capital employed turnover ratio
Revenues divided by average capital employed.
Capital turnover ratio
Revenues divided by average total assets.
Debt/equity ratio
Net indebtedness in relation to equity, including
non-controlling interests.
Dividend yield
Dividend divided by the average share price quoted
of the A share.
Earnings per share
Profit for the period attributable to owners of the parent
divided by the average number of shares outstanding.
EBITA – Earnings before Interest, Taxes, and
Amortization
Operating profit plus amortization and impairment of
intangibles related to acquisitions.
EBITA margin
EBITA as a percentage of revenues.
EBITDA – Earnings Before Interest, Taxes,
Depreciation and Amortization
Operating profit plus depreciation, amortization
and impairment.
EBITDA margin
EBITDA as a percentage of revenues.
Equity/assets ratio
Equity including non-controlling interests, as a
percentage of total assets.
Equity per share
Equity including non-controlling interests divided by
the average number of shares outstanding.
Items affecting comparability
Restructuring costs, capital gains/losses, impairments,
changes in provision for share-related long-term
incentive program and other items with the character
of affecting comparability.
Net cash flow
Change in cash and cash equivalents excluding
currency exchange rate effects.
Net debt/EBITDA ratio
Net indebtedness in relation to EBITDA.
Net indebtedness/net cash position
Borrowings plus post-employment benefits minus cash
and cash equivalents and other current financial assets,
adjusted for the fair value of interest rate swaps.
Net interest expense
Interest expense less interest income.
Operating cash flow
Cash flow from operations and cash flow from
investments, excluding company acquisitions/
divestments
and currency hedges of loans.
Operating cash surplus
Operating profit adding back depreciation,
amortization and impairments as well as capital
gains/losses and other non-cash items.
Operating profit
Revenues less all costs related to operations, but
excluding net financial items and income tax expense.
Operating profit margin
Operating profit as a percentage of revenues.
Organic growth
Sales growth that excludes translation effects
from exchange rate differences, and acquisitions/
divestments.
Profit margin
Profit before tax as a percentage of revenues.
Return on capital employed (ROCE)
Profit before tax plus interest paid and foreign exchange
differences (for business areas: operating profit) as a
percentage of capital employed.
Return on equity
Profit for the period, attributable to owners of the
parent as a percentage of average equity, excluding
non-controlling interests.
Total return to shareholders
Share price performance including reinvested
dividends and share redemptions.
Weighted average cost of capital (WACC)
interest-bearing liabilities x i
+ market capitalization x r
interest-bearing liabilities
+ market capitalization
i: An estimated average risk-free interest rate
of 4% plus a premium of 0.5%.
An estimated standard tax rate has been applied.
r: An estimated average risk-free interest rate of
4% plus an equity risk premium of 5%.
* Atlas Copco has chosen to present the company’s alternative performance measures in accordance with the guidance by the European Securities and Markets
Authority (ESMA) in a separate appendix.The appendix is published on www.atlascopcogroup.com/en/investor-relations/key-figures/financial-definitions
financial definitionS
atlas copco group 2023 149
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
Auditor's report
• Financial definitions
Four years in summary
Contact information
Orders, revenues and profit 2023 2022 2021 2020
Orders, MSEK 170 627 158 092 129 545 100 554
Revenues, MSEK 172 664 141 325 110 912 99 787
Change, organic from volume, price and mix, % 14 12 14 –3
EBITDA, MSEK 44 852 36 549 29 025 24 335
EBITDA margin, % 26.0 25.9 26.2 24.4
Operating profit, MSEK 37 091 30 216 23 559 19 146
Operating profit margin, % 21.5 21.4 21.2 19.2
Net interest expense, MSEK –521 –166 –234 –245
Profit before tax, MSEK 36 442 30 044 23 410 18 825
Profit margin, % 21.1 21.3 21.1 18.9
Profit for the year, MSEK 28 052 23 482 18 134 14 783
Employees 2023 2022 2021 2020
Average number of employees 51 110 45 781 41 272 39 606
Revenues per employee, SEK thousands 3 378 3 087 2 687 2 519
Cash flow 2023 2022 2021 2020
Operating cash surplus, MSEK 45 781 36 978 28 952 25 081
Cash flow before change in working capital, MSEK 35 628 29 600 23 870 20 454
Change in working capital, MSEK –5 775 –7 415 –244 2 166
Cash flow from investing activities, MSEK –9 388 –15 503 –6 121 –16 286
Gross investments in other property, plant and
equipment, MSEK –3 987 –3 660 –1 970 –1 459
Gross investments in rental equipment, MSEK –1 814 –884 –510 –486
Net investments in rental equipment, MSEK –1 769 –808 –474 –416
Cash flow from financing activities, MSEK –18 276 –14 651 –10 323 –8 552
of which dividends paid, MSEK –11 211 –9 250 –8 889 –8 506
Operating cash flow, MSEK 23 192 17 099 19 378 18 910
Four years in summary
Financial position and return 2023 2022 2021 2020
Total assets, MSEK 182 684 172 301 136 683 113 366
Capital turnover ratio 0.94 0.91 0.88 0.86
Capital employed, average MSEK 125 133 106 054 87 537 83 649
Capital employed turnover ratio 1.38 1.33 1.27 1.19
Return on capital employed, % 30 29 27 23
Net indebtedness, MSEK 23 441 26 570 8 151 16 421
Net debt/EBITDA, MSEK 0.5 0.7 0.3 0.7
Equity, MSEK 91 500 80 026 67 634 53 534
Debt/equity ratio, % 26 33 12 31
Equity/assets ratio, % 50 46 49 47
Return on equity, % 32 32 30 27
Key figures per share 2023 2022 20211 20201
Basic earnings / diluted earnings, SEK 5.76 / 5.75 4.82 / 4.81 3.72 / 3.71 3.04 / 3.04
Dividend, SEK 2.80 2 2.30 1.90 1.83
Dividend as % of basic earnings 48.6 47.7 51.0 60.0
Dividend yield, % 1.9 2.0 1.4 1.9
Redemption of shares, SEK – – 2.00 –
Operating cash flow, SEK 4.76 3.51 3.98 3.89
Equity, SEK 19 16 14 11
Share price, December 31, A share / B share, SEK 173.6 / 149.4 123.1 / 111.1 156.5 / 133.1 105.3 / 92.1
Highest price quoted, A share / B share, SEK 174.2 / 150.0 161.2 / 136.3 157.4 / 133.4 111.4 / 97.5
Lowest price quoted, A share / B share, SEK 119.4 / 106.5 92.5 / 83.2 108.5 / 94.8 66.7 / 57.9
Average closing price, A share / B share, SEK 144.2 / 126.1 117.9 / 104.4 134.9 / 114.9 96.3 / 84.5
Average number of shares, millions 4871.4 4 868.4 4 870.9 4 861.7
Diluted average number of shares, millions 4878.9 4 875.9 4 882.1 4 869.0
Number of shareholders, December 31 125 893 115 459 87 923 82 079
Market capitalization, December 31, MSEK 815 902 586 731 732 967 497 187
1 Adjusted for share split in 2022
2 Proposed by the Board
four yearS in Summary
atlas copco group 2023 150
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
Auditor's report
Financial definitions
• Four years in summary
Contact information
contact information
atlas copco group 2023 151
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
Auditor's report
Financial definitions
Four years in summary
• Contact information
CONTACT INFORMATION
Investor relations
Daniel Althoff, Vice President Investor Relations
ir@atlascopco.com
Sustainability
Anna Sjörén, Vice President Sustainability
sustainability@atlascopco.com
Media
Christina Malmberg Hägerstrand, Media Relations Manager
media@atlascopco.com
Atlas Copco in cooperation with
Griller grafisk form AB and Text Helene AB
Copyright 2024, Atlas Copco AB, Stockholm, Sweden
Prepress and print: POD Sthlm
phone: +46 8 743 80 00
reg. no: 556014-2720