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Atlas Copco Industrial Technique Capital Markets Day 2017 Henrik Elmin, Business Area President
Atlas Copco
Industrial Technique
Capital Markets Day 2017
Henrik Elmin, Business Area President
Agenda
1. Facts in brief1
1. Fundamentals2
1. Trends and opportunities3
Electric vehicles
Light-weighting
General industry
Smart factory
1. Summary4
a
b
c
d
2
Atlas Copco Capital Markets Day 2017
Industrial Technique
Industrial Technique
Growth drivers Orders, revenues and operating margin
ROCE
43%
3
Atlas Copco Capital Markets Day 2017
Further developing the offer within
assembly technologies
Innovation is key
Extend the service offer
Industrial Technique
Helping our customers with critical processes
Self-pierce riveting
DispensingMaterialremoval
Tightening Drilling
AutomotiveAutomotiveMetal
fabricationMultiple
industriesAerospace
4
Atlas Copco Capital Markets Day 2017
Industrial Technique
Automotive
Tightening: Multiple industries
PowerTrain Tiers
Electronics White goods Aerospace
Off-road Energy Vehicle maintenance
5
Atlas Copco Capital Markets Day 2017
Industrial Technique
Qualityassurance
Operatorguidance
Process
Improvements
Business concept – General industryPartner in assembly technology
Tightening
Drilling
Maintenance
6
Industrial Technique – Service
Revenues from service, parts and consumables
0%
10%
20%
30%
40%
50%
0
1 000
2 000
3 000
4 000
5 000
2012 2013 2014 2015 2016
Service and consumables revenues, MSEK Service and consumables, share of revenues, %
Atlas Copco Capital Markets Day 2017
7
CAGR
2012 - 2016
16%
Industrial Technique
EFFICIENT
USE OF
RESOURCES
INNOVATE
FOR ENERGY
EFFICIENCY
SAFETY &
WELL-BEING
COMPETENT
TEAMS
Sustainable productivity in practice
The Henrob SPR ”Eco Controller”
HIGHEST
ETHICAL
BEHAVIOUR
The SCA 5 step
Material Efficiency Package
EXAMPLE 1 EXAMPLE 2 EXAMPLE 3
The TBP Battery Pulse Tool
System
8
Atlas Copco Capital Markets Day 2017
Industrial Technique
Trends
Middle class growth
3
Emerging markets4
Quality assurance1
Ergonomics / safety2
Electric vehicles5
Light-weighting6
Electronics7
Flexible lines8
Automation9
Data driven service10
9
Atlas Copco Capital Markets Day 2017
Industrial Technique
High torque bolting solutions
2013
Self-pierce riveting
2014
Hydraulic torque wrenchesand pumps
2014
Strategic approach to acquisitions
Adhesive systems and metering technology
2011
Drilling equipment
2011
Quality control solutions
2013
Mechanical and electrical wrenches
2013
Hydraulic torque wrenches and pumps
2013
Process control solutions
2015
Adhesive dispensing equipment
2016
10
Atlas Copco Capital Markets Day 2017
Industrial Technique
What will be the impact of electric vehicles?
SOURCE: McKinsey 2017
SIMPLIFIED
75
9891
New vehicle sales by powertrain type, %
Base case assumptions in 2030
2015 2030
4
3
20252020
4
Base case
11
11
61
5
22
13
~70 g CO2/km~90 USD/kwh
CO2
~5% sharedvehicle sales
2
Plug-in hybrid electric vehicles
Internal combustion engines
Hybrid electric vehicles
Battery electric vehicles
11
Atlas Copco Capital Markets Day 2017
Industrial Technique
What will be the impact of electric vehicles?
Demandfor Atlas Copco applications
Tier suppliers
ICE powertrainsuppliers
E-powertrain
P/HEV
BEV
P/HEV
BEV
Body shop Final assemblyPaint shop
12
P/HEV: Plug-in/Hybrid Electric Vehicles
BEV: Battery Electric VehiclesAtlas Copco Capital Markets Day 2017
Industrial Technique
Electric vehicles will drive demand
TIGHTENING
TIGHTENING
TIGHTENING
ADHESIVES
RIVETING
13
Atlas Copco Capital Markets Day 2017
Industrial Technique
Light-weighting: Increased need for mixed material joining
SOURCE: McKinsey 2017
Material split / percent
Share of light-weight materials will increase Automotive
14
Atlas Copco Capital Markets Day 2017
Industrial Technique
Light-weighting: Increased need for mixed material joining
Aerospace
15
Atlas Copco Capital Markets Day 2017
Industrial Technique
General industry: Improving production yields in electronics
Growthin Electronics
16
Atlas Copco Capital Markets Day 2017
Industrial Technique
New opportunities in the Smart factory
Increasedline
complexity
Increasedautomation
17
Atlas Copco Capital Markets Day 2017
Industrial Technique
18
Process Deviation
Operator Issue
Equipment Problem
Summary – Industrial Technique
Major opportunities in electric
vehicles and multi-material design
Well positioned in the Smart Factory
Continuation of sustainable business
model in the Automotive and
General Industries
Atlas Copco Capital Markets Day 2017
19
Industrial Technique
Committed to
sustainable productivity.
Atlas Copco Capital Markets Day 2017
Cautionary Statement
“Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the
factors explicitly commented upon, the actual outcome could be materially and adversely affected by other factors
such as the effect of economic conditions, exchange-rate and interest-rate movements, political risks, the impact of
competing products and their pricing, product development, commercialization and technological difficulties, supply
disturbances, and major customer credit losses.”
Atlas Copco Capital Markets Day 2017
