Annual Report 2024
Watch our video
about things
that transform
the future
In Atlas Copco Group, we enable 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 growth. It integrates
financial, sustainability, and governance information
to describe Atlas Copco Group in a comprehensive
and cohesive manner.
Introduction 1 Summary of 2024
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
8 This is how we do business
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 Sustainability report: General information
44 Environmental information
54 EU Taxonomy regulation disclosures
60 Social information
71 Governance information
75 GRI content index
81
Auditor’s limited assurance report on
Atlas Copco AB’s sustainability report
82 Risks, risk management and opportunities
88 The Atlas Copco AB share
Governance 90 Corporate governance
94 Board of Directors
96 Group Management
98 Internal control over reporting
Financials 100 Financial statements (Atlas Copco Group)
105 Notes (Atlas Copco Group)
146 Financial statements (Parent)
148 Notes (Parent)
Other
information
159 Signatures of the Board of Directors
160 Auditor’s report
164 Financial definitions
165 Four years in summary
166 Contact information
Statutory sustainability report and external review
Atlas Copco Group reports on its sustainability work for 2024 in accor-
dance with GRI Standards, which together with the EU Taxonomy regula-
tion disclosures, on pages 54–59, constitutes the Group’s statutory sus-
tainability report. Ernst & Young have expressed their opinion that a stat-
utory sustainability report has been prepared according to the Swedish
Annual Accounts Act, and they have performed a limited review of the
sustainability report according to GRI, see page 81. 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 parentheses 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 sub-
The annual report for the Group and the parent company can be found on pages 5–80, 82–87 and 90–159, excluding the quarterly
data on page 117. The corporate governance report examined by the auditors can be found on pages 90–99.
Sustainability information that has been reviewed by the auditors can be found on pages 5-11, 32–53, and 60–80. This information,
together with the EU Taxonomy disclosures on pages 54–59, constitutes the Group’s statutory sustainability report.
sidiaries 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 out-
comes 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 geopoli-
tical developments, the impact and pricing of competing products,
product development, commercial ization and technological difficulties,
supply-chain interruptions, and major customer credit losses.
Atlas Copco Group 2024
Atlas Copco Group 2024
Solid orders, record revenues, and stable profitability
Orders received, revenues and
operating margin
0
50 000
100 000
150 000
200 000
20242023202220212020
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
7 000
14 000
21 000
28 000
35 000
20242023202220212020
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 2024 2023 2022 2021 2020
Orders received 171 115 170 627 158 092 129 545 100 554
Revenues 176 771 172 664 141 325 110 912 99 787
EBITDA 46 951 44 852 36 549 29 025 24 335
– in % of revenues 26.6 26.0 25.9 26.2 24.4
EBITA ¹ 40 489 39 242 31 956 25 015 20 474
– in % of revenues 22.9 22.7 22.6 22.6 20.5
Operating profit 38 166 37 091 30 216 23 559 19 146
– in % of revenues 21.6 21.5 21.4 21.2 19.2
Adjusted operating profit 38 741 38 217 30 065 24 246 19 998
– in % of revenues 21.9 22.1 21.3 21.9 20.0
Profit before tax 37 800 36 442 30 044 23 410 18 825
– in % of revenues 21.4 21.1 21.3 21.1 18.9
Profit for the year 29 794 28 052 23 482 18 134 14 783
Basic earnings per share, SEK 6.11 5.76 4.82 3.72 ² 3.04 ²
Diluted earnings per share, SEK 6.10 5.75 4.81 3.71 ² 3.04 ²
¹ Operating profit excluding amortization of intangibles related to acquisitions.
² Adjusted for share split.
Operating
margin:
21.6% (21.5)
Operating cash flow:
MSEK 30 981
(23 192)
Revenues:
MSEK 176 771
+2%
Return on
capital employed:
28% (30)
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 2024
is based on the proposal from
the Board of Directors.
Atlas Copco Group 2024 1
SUMMARY OF 2024
Introduction
• Summary of 2024
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 2024, the Group had
revenues of BSEK 177, and about 55 000 employees at year end.
Revenues by region
Revenues by region
Orders received by customer category
Orders received by customer category
Asia/Oceania, 31%
North
America, 26%
Africa/
Middle East, 7%
Europe, 30%
South
America, 6%
Asia/Oceania, 27% North
America, 34%
Africa/
Middle East, 1%
Europe, 35%
South
America, 3%
Asia/Oceania, 58%
North
America, 26%
Africa/
Middle East, 1% Europe, 15%
Asia/Oceania, 27% North
America, 27%
Africa/
Middle East, 8%
Europe, 31%
South
America, 7%
Other, 16%
General manu-
facturing, 25%
Construction, 13%
Service, 13%
Process industry, 28% Automotive, 2%
Electronics, 3%
Other, 8% General manu-
facturing, 23%
Construction, 2%
Service, 6%
Electronics, 4%
Automotive, 54%
Process industry, 3%
Process
industry, 25%
General manu-
facturing, 10%
Electronics, 63%
Other, 2%
Other, 21% General manu-
facturing, 21%
Service, 6%
Electronics, 1%
Process industry, 26%
Construction, 24%
Automotive, 1%
Compressor
Technique
Page 20
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 79 976
Revenues: MSEK 78 259
Operating margin: 25.2%
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.
Orders received: MSEK 36 629
Revenues: MSEK 40 441
Operating margin: 21.1%
Revenues by region
Revenues by region
Orders received by customer category
Orders received by customer category
Power
Technique
Page 29
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 27 866
Revenues: MSEK 29 622
Operating margin: 18.5%
Revenues by region, Group
Asia/Oceania, 36%
North
America, 27%
Africa/
Middle East, 5%
Europe, 28%
South
America, 4%
Share of revenues, Group
Equipment, 63%Service, 37%
Orders received by customer category, Group
Other, 12%
General manu-
facturing, 21%
Construction, 10%
Service, 8%
Process industry, 23%
Electronics, 16%
Automotive, 10%
Share of revenues
Service, 43% Equipment, 57%
Share of revenues
Equipment, 74%Service, 26%
Share of revenues
Equipment, 73%Service, 27%
Share of revenues
Equipment, 56%Service, 16%
Service
(Specialty
Rental), 28%
Industrial
Technique
Page 26
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 27 656
Revenues: MSEK 29 522
Operating margin: 20.5%
Introduction
Summary of 2024
• A decentralized group with
four business areas
President and CEO
This is Atlas Copco Group
The year in review
Financials
Other information
Atlas Copco Group 2024 2
A DECENTRALIZED GROUP WITH FOUR BUSINESS AREAS
Technology leadership and innovation
We can look back on a year where our ability to adapt quickly to new business conditions, our focus
on maintaining stability, and our drive to fostering innovation led to solid orders, record revenues,
and stable profitability. Our approach to building trust and creating long-term relationships with
stakeholders enables the development of transformative technologies and our success over time.
What is technology leadership? Atlas Copco Group is known for
developing innovative products and solutions, and we like to say
that we make things that make society function smoothly. But true
innovation is not just based on technical expertise and looking
ahead. You must also be open minded and ready to connect with
your stakeholders on a deeper level to capture challenges and
needs that are less obvious. This kind of relationship can only be
built on trust and long-term commitment, and on a genuine inter-
est in mutual growth. Then, and only then, the opportunities to
develop technologies that truly hold the power of transforming the
future arise.
This level of innovation also requires a rare combination of long-
term stability and constant change. Atlas Copco Group is set up to
harvest more than 150 years of collected knowledge and to quickly
adapt to new business conditions. Our profitable service business
and asset-light operations, as well as the speed that comes from a
highly decentralized organization, allow us to capture opportuni-
ties at an early stage. This helps us remain successful over time
and enables us to continuously invest in innovation that drives
technology forward.
Having a global and diversified business brings a lot of advan-
tages. Our global presence and broad application knowledge make
us robust and able to tackle segmental downturns. We nurture
close partnerships and our service solutions, which in 2024 repre-
sented 37% of revenues, provide unique insights that can be lever-
aged to create new innovations and new value for our customers,
society, and ourselves.
When needed, we acquire expertise that challenge us and keep
us at the forefront of technology. Acquisitions are an important
part of our strategy and complement our investments in organic
growth. Last year, we set a record with 33 completed acquisitions.
However, growth is rarely linear and 2024 was in some ways more
challenging than the year before. After a very strong start, the
market conditions became increasingly unpredictable towards
the end of the year and were characterized by a level of hesitancy.
Despite this the overall demand for Atlas Copco Group’s equip-
ment and services remained stable. In total, the Group’s order
intake reached MSEK 171 115 (170 627). Revenues reached a
record level at MSEK 176 771 (172 664). The operating profit also
reached a record of MSEK 38 166 (37 091), corresponding to a
margin of 21.6% (21.5).
Updated targets to match future ambitions
Being a technology leader also entails responsibilities. In our case,
an integrated strategy, backed by ambitious targets and long-term
commitments, helps us deliver value in a way that is economically,
environmentally and socially responsible.
By regularly reviewing our non-financial targets we make sure
that they reflect our most material topics and that we meet stake-
holder expectations. Our operational entities and divisions are
responsible for incorporating the updated targets into their plans
and following up on results and progress.
The target updates announced in 2024 and valid from 2025
demonstrate our continuous commitment to focus on climate, cir-
cularity and gender balance. A new target has been added related
to trade compliance and fair competition training as we see a need
to raise further awareness in these areas. We are also adding a tar-
get to have 25% women in leadership positions by 2030 in addition
to our current target of having 30% women employees the same
year, as well as a commitment to developing a climate transition
plan by the end of 2026, and to set long-term climate targets
beyond 2030.
To strengthen our due diligence, we have also added a target
focusing on creating supplier engagement around environmental,
social and governance assessment and action.
Innovation is our biggest change-driver
To reach our ambition of growing in the right way, continuous
improvement is a top priority in all parts of the organization. I want
to reinforce our commitment to continued investments in develop-
ing transformational technology, services, and solutions. In 2024,
we spent 4% of our revenues, or MSEK 7 065, on R&D, and today
over 5 000 of our more than 55 000 employees are R&D engineers.
Product innovation is an important part of staying ahead of compe-
tition. But just as important is excelling in operational efficiency and
Atlas Copco Group 2024 3
Introduction
Summary of 2024
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
our ability to be innovative in areas such as marketing and sales,
logistics and manufacturing. We will continue to future proof our
business also in these areas.
This year we have seen a rapid evolvement of AI that will pose
a wave of transformation and change the way we work going for-
ward. There are great opportunities to gain speed, efficiency and
increase customer value. We are today leveraging AI across various
domains, including R&D, finance, customer interaction, and order
management, to mention a few.
Innovation and continuous improvement are top priorities in all
parts of our organization and deeply embedded into our culture.
This puts us in a strong position to leverage business opportunities
linked to both regulatory requirements and customer demands.
A main focus area is to drive the development of new and more
efficient technologies to limit climate change.
In 2021, we set science-based targets to reduce greenhouse
gas emissions throughout our entire value chain by 2030, in line
with the Paris Agreement. Since then, we have embarked on a
journey to further reduce our own carbon emissions as well as our
customers’.
We continue to see a significant reduction in emissions from our
own operations. However, our increase in sales since the base year
and a limited access to renewable energy on main customer mar-
kets pose a big challenge in terms of reaching our targets for the
use phase of our products (scope 3).
Our biggest contribution to a low-carbon society is, however,
linked to the innovations we put on the market. We see that our
efforts to develop technologies and products that are more energy
efficient than the previous generation, as well as our increasing
focus on optimization and circularity, are giving results.
Apart from energy efficiency we enable solutions that can abate,
capture, utilize and store greenhouse gases. This is an emerging
market where our compressor, vacuum and industrial pump exper-
tise can have a direct positive impact. To track our positive contri-
bution, we are exploring how to account for avoided emissions that
are a direct result of using our products, technologies and service.
Water for All 40 years
Last year marked the Group’s 150-year anniversary. This year,
another milestone was reached. Our employee community
engagement, Water for All, turned 40 years. In August 1984, two
colleagues at our office in Sickla, Sweden, found themselves deeply
affected by the suffering inflicted on a population of people living
high up in the Andes mountains, due to lack of water. Since then,
Water for All has spread across the globe, always at the initiative of
volunteering employees willing to establish and run the organiza-
tion in their respective country. The Group adds double the sum
raised by employees and together we have contributed to millions
of people gaining access to clean water and sanitation. I am a
proud supporter of Water for All and believe that the engagement
of our employees reflects our core values of innovation, interaction
and commitment, as well as our dedication to empowering people.
Continuous learning and growth
This year, I took up the role as CEO of this fantastic company after
a long career within the Group. I first joined in 1996 as a trainee
engineer in my native country Brazil and have since then worked in
different countries and different roles, always gathering insights
and inspiration from the people I have met along the way. Although
every journey is unique, I am far from alone when it comes to jump-
ing on opportunities and taking on new challenges. This company
is filled with curious people who go out of their way, every day, to
support our customers and to drive technology forward. Let’s see
where this drive and dedication will take us in the coming years.
Vagner Rego
President and CEO of Atlas Copco Group
Technology leadership and innovation, continued
For the full list of acquisitions, please
see page 110.
Atlas Copco Group 2024 4
Introduction
Summary of 2024
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
Atlas Copco Group identifies profitable niches and
operates in selected market segments. We create
lasting growth by leveraging our global market
presence and diverse customer base. We increase
our market presence through innovation and by
expanding into segments and technologies close
to our core. Depending on the customer, prod-
ucts, and market, we sell our products directly or
indirectly. We have a portfolio with several strong
brands, each with a unique value proposition and
an aim for a leading position.
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 values.
To ensure profitable growth over a business
cycle, the Group focuses on service and aims to
Strategy and fundamentals for growth
have an asset-light balance sheet and a flexible
cost base.
In our resilient service business, we seek to
perform more service on a higher share of the
installed base of equipment and extend our ser-
vice offering by giving customers new insights
supported by connected products.
In order to create the right conditions for
speed and agility, we use a decentralized model
with clear accountability, an outsourced produc-
tion model, a flexible workforce, continuous
scenario planning, and a transparent organiza-
tion with comprehensive financial follow-up.
We believe in keeping 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 constantly
improving production processes and developing
top-quality and highly efficient products and
services for our customers.
Leading
position in
selected end
markets
Leading
differentiated
technology
Products
critical
to customers’
operations
Global market
presence
Diverse customer
base
Different
value propositions
with multiple
brands
Passionate
and committed
people
Decentralized
business
model
Resilient
and asset
light
Operational
excellence
An organization
focused on 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 growth.
This means that we should continuously deliver profitable growth with an increased
positive impact on society and the environment, while promoting diversity and
inclusion. It also means that we include the perspectives of different stakeholders,
like customers and society, when we create value.
To ensure Atlas Copco Group’s strategic direction and execution, we rely on highly
competent people who are passionate about their jobs and committed to delivering
customer value. We focus on attracting people with the right mindset and skills, and
enable them to grow with freedom and accountability. This is crucial to our success.
Atlas Copco Group 2024 5
Introduction
This is Atlas Copco Group
• Technology that transforms
the future
Our targets
This is how we do business
The year in review
Financials
Other information
THIS IS ATLAS COPCO GROUP
Sustainable
profitable
growth
Atlas Copco Group sets ambitious targets to deliver sustainable, profitable growth. The targets have different time horizons:
annual, three-year, over a business cycle, and by 2030 for the more long-term ambitions. Sustainability is a central part of the
Group’s mission and strategic direction. An integrated strategy, backed by ambitious targets, helps us 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
20242023202220212020
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
20242023202220212020
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 2015 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
20242023202220212020
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 2024 is based on the
proposal from the Board of Directors.
Environ ment 2024 2023 2022 Target
Reduc tion in line with the 1.5 degree warming trajectory in CO2e1 emissions (tonnes)
from scopes 1 and 2, compared to the baseline 2019 –40% –37% 2 –32% 2 –46% by 2030
Reduc tion in line with the well-below 2 degrees warming trajec tor y in CO2e 1
emissions (tonnes) from scope 3, compared to the baseline 2019 +15% +27% 2 +19% 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 7.4 7.5 8.4 Continuous decrease
Reused, recycled or recovered waste from internal operations 91% 91% 92% 100% by 2030
Projects for new and redesigned products with targets for reduced carbon impact 96% 95% 97% 100%
Group-common methodology for assessing the circularity of new or
redesigned products In place – – In place by 2024
Employees
Female employees, at year end 22.4% 22.0% 21.6% 30% by 2030
Employees agree that they feel a sense of belonging at the company 3
,
4 – 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 3 – 76 –
Employees agree there is opportunity to learn and grow in the company 3 – 75 –
Employees agree that the company takes a genuine interest in their well-being 3 – 74 – 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% 99% 100%
New employees participate in the Group’s ethics training within 12 months
of joining the company, starting 2023 4 95% 94% – 100%
Employees participate in the Group’s biennial ethics training, starting 2023 4 – 99% – 100%
Significant suppliers confirm compliance with the Group’s Code of Conduct 91% 90% 93% 100%
Significant distributors confirm compliance with the Group’s Code of Conduct 94% 94% 92% 100%
1 CO2e stands for carbon dioxide equivalent.
2 Emissions are restated. See page 53 for details.
3 Measured every two years through the employee survey.
Scores based on scale 0–100 where 0 is “strongly disagree”
and 100 is “strongly agree”.
4 First measurement done in 2023.
Atlas Copco Group 2024 6
OUR TARGETS
Introduction
This is Atlas Copco Group
Technology that transforms
the future
• Our targets
This is how we do business
The year in review
Financials
Other information
Our targets valid from 2025 – updated non-financial targets
Environ ment Target Target year
Reduce CO2e emissions (tonnes) from scopes 1 and 2, compared to the base year 2019* –46% 2030
Reduce CO2e emissions (tonnes) from scope 3, compared to the base year 2019* –28% 2030
Develop a climate transition plan and set long-term climate targets beyond 2030
for scope 1, 2 and 3 In place by end of 2026 2026
Projects for new and redesigned products with targets for reduced carbon impact 100% Annually
Projects for new and redesigned products with applied circularity principles
according to internal guidelines 100% 2027
Reuse, recycle or recover waste from internal operations 100% 2030
Increase share of significant direct suppliers with an approved environmental
management system Continuous increase Annually
* The targets were approved by the Science Based Targets initiative (SBTi) in 2021. The target for scopes 1 and 2 are in line with
the 1.5 degree warming trajectory, and the target for scope 3 is in line with the well below 2 degree warming trajectory.
Social
Increase share of women employees* 30% 2030
Increase share of women in leadership positions* 25% 2030
Employees agree that they feel a sense of belonging in the company
Above the global
benchmark and a
continuous increase
Bi-annually
Employees agree we have a work culture of respect, fairness and openness Bi-annually
Employees agree there is opportunity to learn and grow in the company Bi-annually
Employees agree that the company takes a genuine interest in their well-being Continuous increase Bi-annually
Decrease number of recordable injuries per million working hours Continuous decrease Annually
Enable the continued successful implementation of our employee-driven community
engagement initiative Water for All and continue to double-match employee donations Not applicable Continuously
* The target is measured at year end in FTE.
Governance
Employees have signed the Group’s Code of Conduct compliance statement 100% Annually
Employees have participated in the Group’s Code of Conduct classroom training 100% Bi-annually
Employees in selected target groups have participated in training in trade
compliance and fair-competition 100%
Alternating
years
Significant suppliers have confirmed compliance with the Group’s Code of Conduct
by signing our Business partner criteria 100% Annually
Significant distributors have confirmed compliance with the Group’s Code of Conduct
by signing our Business partner criteria 100% Annually
Significant direct material suppliers engaged in assessment on environmental,
social and governance aspects Target (%) to be defined 2027
In 2024, we introduced new and reformulated non-financial targets
for the years 2025–2027, demonstrating the Group’s continuous
commitment to focus on climate, circularity, and gender balance.
We also introduced a target related to trade compliance and fair
competition training.
We regularly review our non-financial targets to make sure that
our priorities are aligned with our most material topics, thereby
meeting stakeholder expectations and improving performance.
The revision of the targets is based on the insights we gained
from the double materiality assessment that was initiated in 2023.
As a consequence, some of our previous non-financial targets have
been reformulated or discontinued. The long term non-financial
targets for 2030 remain unchanged.
In addition to our increased ambitions, the updated targets
reflect business opportunities that we can leverage as we continue
our work to transform the future and further develop our perfor-
mance for the benefit of our customers, shareholders and other
stakeholders.
The table to the right indicates which targets are new as of 2025.
New target
Continued target
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%
Atlas Copco Group 2024 7
OUR TARGETS
Introduction
This is Atlas Copco Group
Technology that transforms
the future
• Our targets
This is how we do business
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 around 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, 17%
Compressor
Technique, 44%
Vacuum
Technique, 23%
Industrial
Technique, 16%
Share of revenues by business area
Equipment, 63%Service, 37%
Other, 12%
General manu-
facturing, 21%
Construction, 10%
Service, 8%
Process industry, 23%
Electronics, 16%
Automotive, 10%
Orders received by customer category
Share of revenues
Stable service business
37% 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
customers. 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
logistics are of great importance.
Purchased components account for approxi-
mately 75% of the production cost of equipment,
while the remaining 25% are internally manufac-
tured core components, assembly costs and
overhead. Equipment sales generate about 63%
of revenues, and manufacturing and logistics are
organized to be able to adapt quickly to changes
in demand. Equipment manufacturing is based
primarily on customer orders, while only some
standard, high-volume equipment is manufac-
tured based on projected demand.
Sales and service
Atlas Copco Group’s ambition is to build close
relationships with customers and enable them to
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
and have the right competencies. 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 around
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 2024 8
THIS IS HOW WE DO BUSINESS
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
The year in review
Financials
Other information
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 and 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%
This is how we do business, continued
of total revenues.
Atlas Copco Group 2024 9
THIS IS HOW WE DO BUSINESS
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
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 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 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 marketing), distribution centers, and
several customer centers (units responsible for customer con-
tacts, 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, 2025
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
One common Group
identity and a common
brand governance model
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
Air and Gas Applications
Medical Gas Solutions
Gas and Process
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
Portable Power and Flow
Industrial Flow
POWER TECHNIQUE
The Group’s Code of Conduct
This is how we do business, continued
Atlas Copco Group 2024 10
THIS IS HOW WE DO BUSINESS
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
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, innovation, and
sustainability. 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 culture, such as recurring work-
shops for employees on company values,
strategy, and guidelines.
In the Group, leadership is defined as the
ability to create lasting results through people.
We believe that competent and committed lead-
ers are crucial to achieving sustainable, profitable
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.
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
companies, we work with continuous compe-
tence development and knowledge sharing,
while embedding our core values: interaction,
commitment and innovation, across all people
processes.
Atlas Copco Group has a strong culture of
growing talents by encouraging employees to
take accountability for their own career and com-
petence development. The Group enables and
encourages internal mobility and growth by
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.
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 capacity in a dete-
riorating 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.
INTERACTION
INNOVATION
COMMITMENT
This is how we do business, continued
The handbook covers governance, safety, health,
environment and quality, accounting and busi-
ness control, treasury, tax, audit and internal con-
trol, Information technology (IT), people, culture,
legal, communications and branding, risk, crisis
management, administrative services, insurance,
standardization, and acquisitions.
Atlas Copco Group 2024 11
THIS IS HOW WE DO BUSINESS
Introduction
This is Atlas Copco Group
Technology that transforms
the future
Our targets
• This is how we do business
The year in review
Financials
Other information
The year in review
Market review and demand
The overall demand for Atlas Copco Group’s
equipment and services remained stable in 2024.
The demand for service, including specialty rental
solutions, remained good and solid order growth
was achieved in all regions. In comparable cur-
rencies the order intake for service increased by
9% with positive contribution from all business
areas. Orders for equipment, on the other hand,
decreased by 2% adjusted for currency, due to
weaker demand for most product groups.
The order intake for industrial compressors
remained essentially unchanged, while the order
intake for gas and process compressors did not
fully reach the previous year’s high level.
The demand for vacuum equipment was
mixed. Order volumes for vacuum equipment to
the semiconductor and flat panel industry
increased, driven by strong development in Asia
and a somewhat increased order intake in
Europe. The order intake for vacuum equipment
to industrial and scientific vacuum customers, on
the other hand, decreased, mainly driven by
lower order intake in Asia. Order volumes for
industrial assembly and vision solutions to the
automotive industry decreased, primarily driven
by lower investment levels among car manufac-
turers in Asia and Europe. The order intake for
industrial assembly and vision solutions to the
general industry remained at the same level as
previous year. Orders for power equipment, such
as portable compressors and generators,
decreased mainly due to significantly lower
demand in North America. Demand for industrial
pumps also decreased, but overall order intake
increased thanks to contributions from acquisi-
tions in Europe and Africa/Middle East.
In total, the Group’s order intake reached
MSEK 171 115 (170 627). Currency had a negative
effect of 2%, while acquisitions contributed with
2%, resulting in a flat organic order development.
See further information in the business area
sections on pages 19–31.
North America
The order intake in North America decreased 4%
in local currencies. Order volumes for industrial
compressors, and gas and process compressors,
decreased, particularly for the latter part of the
year. The order intake for vacuum equipment
decreased markedly, driven primarily by lower
demand from the semiconductor industry. Order
volumes for industrial assembly and vision solu-
tions remained essentially unchanged due to a
weaker demand from the automotive industry,
that was compensated by increased demand
from the general industry. Orders for power
equipment, such as portable compressors, gen-
erators, and pumps, decreased. The service busi-
ness continued to develop well with increased
order intake in all business areas. In total, North
America accounted for 26% (27) of orders
received.
South America
Orders received in South America increased 12%
in local currencies. Order intake for industrial
compressors and power equipment increased
markedly. Orders for industrial assembly and
vision solutions also increased. The demand for
service increased and solid order growth was
achieved in all business areas. South America
accounted for 4% (4) of orders received.
Europe
The order intake in Europe increased 2% in local
currencies. The order intake for industrial com-
pressors and vacuum equipment was basically
unchanged. The demand for gas and process
compressors did not reach the previous year’s
level and the order intake decreased markedly.
Orders for power equipment, such as portable
compressors and pumps, increased. Solid order
growth was achieved for the service business
within all business areas. In total, Europe
accounted for 27% (27) of orders received.
Africa/Middle East
Orders received increased 49% in Africa/Middle
East in local currencies. The strong order growth
was driven by significantly higher demand for
industrial compressors and gas and process
compressors. Strong order growth was also
achieved for power equipment. The demand for
service increased and the order intake increased
in all business areas. In total, Africa/Middle East
accounted for 7% (5) of orders received.
Asia/Oceania
The order intake in Asia/Oceania remained
unchanged in local currencies. The demand for
compressors weakened and the order intake for
industrial compressors, and gas and process
compressors, decreased. Orders for industrial
assembly and vision solutions also decreased
due to lower investment levels in the automotive
and general industry. The order intake for
vacuum equipment increased, driven by higher
demand from the semiconductor and flat panel
industry. Orders for industrial and scientific
vacuum equipment decreased. The demand for
power equipment, such as portable compres-
sors, generators and pumps, decreased, but
thanks to contributions from acquisitions, the
order intake increased. The service business
achieved solid order growth in all business areas.
Asia/Oceania accounted for 36% (37) of orders
received.
Market presence
Atlas Copco Group had own customer centers
in 73 (71) countries and production facilities in
28 (26) countries. Revenues were reported in
179 (182) countries.
Important events – before and after period end
Acquisitions and divestments
The Group completed 33 acquisitions during
the year. In total, the acquisitions added net
revenues of approximately MSEK 3 410 com-
pared to the previous year. See further informa-
tion in note 2 and in the business area sections
on pages 19–31.
New President and CEO
As of April 27, 2024, Vagner Rego became President
and CEO of Atlas Copco AB, succeeding Mats
Rahmström. Before taking on the role as President
and CEO, Vagner Rego was President of the Com-
pressor Technique business area.
Changes in Group Management
On February 20, 2024, Philippe Ernens was
appointed President of the Compressor Technique
business area and member of Group Management,
effective May 1, 2024. Philippe Ernens was previ-
ously President for the Oil-free Air division within
the Compressor Technique business area.
On September 23, 2024, Koen Lauwers was
appointed President of the Vacuum Technique
business area and member of Group Management,
effective January 1, 2025. Koen Lauwers was previ-
ously President for the Semiconductor division
within the Vacuum Technique business area.
As of January 1, 2024, Marcus Hvied became
member of Group Management after having
been appointed Senior Vice President, Chief
Information Officer.
Atlas Copco Group 2024 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 2015 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
20242023202220212020
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
20242023202220212020
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
20242023202220212020
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 2024
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: 26%
Change: –4%
Share: 4%
Change: +12%
Share: 27%
Change: +2%
Share: 7%
Change: +49%
Share: 36%
Change: 0%
North
America
South
America
Europe
Africa/
Middle East
Asia/
Oceania
Atlas Copco Group 2024 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 2% to a record MSEK 176 771
(172 664), corresponding to a 2% organic increase. Currency had
a negative effect of 2%, and acquisitions contributed with 2%
during the year. The Group’s target is to achieve an annual revenue
growth of 8% over a business cycle. For the period 2015–2024, the
average annual revenue growth has been 9%*.
Operating profit
The operating profit also reached a record of MSEK 38 166 (37 091),
corresponding to a margin of 21.6% (21.5). Items affecting compa-
rability amounted to MSEK –575 (–1 126) whereof the change in
provision for share-related long-term incentive programs, reported
in Common Group Items was MSEK –268 (–520).
Other items affecting comparability includes MSEK +65 for a
partial release of a provision for a commercial dispute recorded in
Q4 2023, MSEK –194 attributed to costs related to a management
buyout in Russia in the form of an asset transfer, both reported in
Common Group Items, restructuring costs of total MSEK –400 in
the business areas Vacuum Technique and Industrial Technique,
and MSEK +222 related to a representations and warranties insur-
ance claim in the Vacuum Technique business area. The adjusted
operating profit increased 1% to MSEK 38 741 (38 217), corre-
sponding to a margin of 21.9% (22.1). See the sales and profit
bridge below.
The operating profit for the Compressor Technique business
area increased by 7% to MSEK 19 716 (18 488), corresponding to
a margin of 25.2% (24.5). The margin was positively affected by
currency and by the combination of volume, price and mix, while
acquisitions had a negative effect.
The operating profit for the Vacuum Technique business area
decreased 11% to MSEK 8 541 (9 607), corresponding to a margin
of 21.1% (22.4). Items affecting comparability amounted to MSEK
–4, whereof MSEK –226 related to restructuring costs and MSEK
+222 related to a recovered representations and warranties insur-
ance claim, attributed to an acquisition dating back before 2020.
The adjusted operating margin was 21.1% (22.4), negatively
affected by lower revenue volumes and dilutions from acquisition.
Currency had a positive effect on the margin.
The operating profit for the Industrial Technique business area
Revenues and return
* Currency adjusted. Figures for the years 2015–2017 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
2024
Volume, price,
mix and other Currency Acquisitions
Items affecting
comparability
Share-based long-term
incentive programs 2023
Revenues 176 771 3 242 –2 545 3 410 – – 172 664
Operating profit 38 166 94 385 45 299 252 37 091
Effect on margin, % 21.6 21.5
Sales bridge,
Atlas Copco Group
Orders received Revenues
2023, MSEK
170 627 172 664
Structural change, % +2 +2
Currency, % –2 –2
Organic*, % +0 +2
Total, % +0 +2
2024, MSEK 171 115 176 771
* 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
2023, MSEK
79 492 75 552 35 723 42 812 29 497 28 453 26 940 26 899
Structural change, % +1 +1 +2 +1 +0 +0 +10 +9
Currency, % –2 –2 –1 –1 –1 –1 –1 –1
Organic*, % +2 +5 +2 –6 –5 +5 –6 +2
Total, % +1 +4 +3 –6 –6 +4 +3 +10
2024, MSEK 79 976 78 259 36 629 40 441 27 656 29 522 27 866 29 622
* Volume, price and mix.
decreased 2% to MSEK 6 066 (6 183), including items affecting
comparability of MSEK –174 related to restructuring costs. The
operating margin was 20.5% (21.7). The adjusted operating margin
was 21.1% (21.7), negatively affected by an unfavorable sales mix
and dilution from acquisitions.
The operating profit for the Power Technique business area
increased 6% to a record MSEK 5 488 (5 191), corresponding to a
margin of 18.5% (19.3). The lower margin was primarily due to
negative effects from volume and dilution from acquisitions.
Currency had no material effect on the operating margin.
Net costs for common Group items and eliminations were
MSEK –1 645 (–2 378 ). The decrease was mainly due to last year's
higher costs linked to a provision recorded 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
20242023202220212020
0
10
20
30
40
MSEK %
Orders received, revenues and operating margin
Orders received,
MSEK
Revenues, MSEK
Operating
margin, %
Atlas Copco Group 2024 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 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Compressor Technique 78 259 75 552 19 716 18 488 25.2 24.5 85 85 1 760 1 091
Vacuum Technique 40 441 42 812 8 541 9 607 21.1 22.4 20 22 1 358 1 742
Industrial Technique 29 522 28 453 6 066 6 183 20.5 21.7 21 21 604 738
Power Technique 29 622 26 899 5 488 5 191 18.5 19.3 18 22 2 940 2 089
Common Group functions/eliminations –1 073 –1 052 –1 645 –2 378 102 143
Total Group 176 771 172 664 38 166 37 091 21.6 21.5 28 30 6 764 5 803
¹ Excluding right-of-use assets.
Depreciation and EBITDA
Depreciation, amortization and impairment costs were MSEK
8 813 (7 779) and earnings before depreciation and amortization,
EBITDA, reached MSEK 46 951 (44 852), corresponding to a margin
of 26.6% (26.0).
Net financial items
The Group’s net financial items totaled MSEK –366 (–649) whereof
interest net was MSEK –258 (–521). The lower interest net was
mainly a result of lower net debt. Other financial items were MSEK
–108 (–128). See notes 7 and 26.
Profit before tax
Profit before tax increased 4% to MSEK 37 800 (36 442). Excluding
items affecting comparability, profit before tax was MSEK 38 375
(37 568 ), corresponding to a margin of 21.7% (21.8).
Taxes
Taxes for the year amounted to MSEK 8 006 (8 390), corresponding
to an effective tax rate of 21.2% (23.0) in relation to profit before
tax. The lower effective tax rate was partly due to the release of a
provision for an R&D tax incentive in the second quarter.
See note 8.
Profit and earnings per share
Profit for the year increased 6% to MSEK 29 794 (28 052).
This corresponds to basic and diluted earnings per share of
SEK 6.11 (5.76) and SEK 6.10 (5.75) respectively.
Depreciation, amortization
and impairment, MSEK
2024 2023
Rental equipment 1 098 897
Other property, plant and equipment 2 244 1 944
Right-of-use assets 1 855 1 639
Intangible assets 3 616 3 299
Total 8 813 7 779
Key financial data, MSEK 2024 2023 Change, %
Orders received 171 115 170 627 0
Revenues 176 771 172 664 2
EBITDA 46 951 44 852
– in % of revenues 26.6 26.0
EBITA ¹ 40 489 39 242
– in % of revenues 22.9 22.7
Operating profit 38 166 37 091 3
– in % of revenues 21.6 21.5
Adjusted operating profit 38 741 38 217 1
– in % of revenues 21.9 22.1
Profit before tax 37 800 36 442 4
– in % of revenues 21.4 21.1
Profit for the year 29 794 28 052 6
Basic earnings per share, SEK 6.11 5.76
Diluted earnings per share, SEK 6.10 5.75
¹ Operating profit excluding amortization of intangibles related to acquisitions.
Revenues and return, continued
Atlas Copco Group 2024 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 14% to MSEK 208 538 (182 684).
Cash, cash equivalents and other current financial assets increased
to MSEK 19 402 (11 852), as a net effect of operational cash genera-
tion (see next page), dividend to shareholders of MSEK –13 647
(–11 203), and acquisitions of MSEK –7 424 (–4 314).
Working capital ratios
The ratio of inventories to revenues at year end decreased to
16.4% (17.0), and trade receivables was 19.1% (18.9). Trade
payables were 9.5% (10.3).
Capital turnover
The capital turnover ratio was 0.89 (0.94) and the capital employed
turnover ratio was 1.28 (1.38).
Equity
At year end, Group equity including non-controlling interests
was MSEK 113 760 (91 500), corresponding to 55% (50) of total
assets. Equity per share was SEK 23 (19). Atlas Copco AB’s market
capitalization at year end was BSEK 800 (816), a decrease of 2%.
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 36 113
(22 900). See page 101 and note 9. Shareholders’ transactions
include dividends totaling MSEK –13 652 (–11 211), sales and
repurchases of own shares of net MSEK 45 (265), and share-based
payments of net MSEK –238 (–472 ). See page 103 and note 19.
Return on capital employed and return on equity
Return on capital employed reached 28% (30) and the return on
equity was 29% (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, 2024 Dec 31, 2023
Intangible assets 77 107 67 501
Rental equipment 5 947 4 345
Other property, plant and equipment 17 745 14 358
Right-of-use assets 7 133 5 763
Other fixed assets 5 095 4 510
Inventories 29 012 29 283
Receivables 47 097 45 072
Current financial assets 434 965
Cash and cash equivalents 18 968 10 887
Total assets 208 538 182 684
Total equity 113 760 91 500
Interest-bearing liabilities 37 504 35 293
Non-interest-bearing liabilities 57 274 55 891
Total equity and liabilities 208 538 182 684
Equity, MSEK 2024 2023
Opening balance 91 500 80 026
Profit for the year 29 794 28 052
Other comprehensive income for the year 6 319 –5 152
Shareholders’ transactions –13 652 –11 211
Change of non-controlling interests –8 –8
Acquisition and divestment of own shares 45 265
Share-based payments, equity settled –238 –472
Closing balance 113 760 91 500
Equity attributable to
– owners of the parent 113 700 91 450
– non-controlling interests 60 50
Atlas Copco Group 2024 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 37 504 (35 293), whereof
MSEK 2 740 (2 584) in post-employment benefits. The Group has
an average maturity of 4.7 years on interest-bearing liabilities.
See notes 20 and 22 for additional information. The Group’s net
indebtedness, amounted to MSEK 18 102 (23 441) at year end.
The net debt/EBITDA ratio was 0.4 (0.5) and the debt/equity ratio
was 16% (26).
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 47 099 (45 781). Cash flows from
financial items were MSEK 151 (–883). Net pension funding and
payments were MSEK –517 (–512). The working capital decreased
by MSEK 2 068 (increase of 5 775), primarily due to lower invento-
ries. Net investments in rental equipment were MSEK 2 444 (1 769).
Gross investments in property, plant and equipment increased
to MSEK 4 236 (3 987). In 2024, Compressor Technique made
notable investments in a production and R&D facility in China, a
production and R&D facility in India, a compressor production facil-
ity in Türkiye, and a service center for gas and process compressors
in the USA. Vacuum Technique invested in a service facility, and a
production facility for dry vacuum pumps in the USA, new machin-
ery in a production facility in India, and a production facility for
Revenues and return, continued
turbo pumps in Japan. Industrial Technique invested in new
machinery in a production facility in Sweden and in a production
and R&D facility in China. Power Technique made investments in a
rental depot in Spain, and in production facilities for portable com-
pressors in Belgium and China. Cash received from sale of prop-
erty, plant and equipment equaled MSEK 74 (101).
Net investments in intangible assets, mainly related to capitali-
zation of product development expenditures, were MSEK 1 788
(1 464). Net investments in other assets were MSEK 52 (–18).
In total, the operating cash flow reached MSEK 30 981 (23 192).
Cash flow from structural changes
The net cash flow from structural changes, i.e. acquisitions and
divestments, amounted to MSEK –7 424 (–4 314). See also note 2.
Cash flow from financing
Dividends paid amounted to MSEK –13 647 (–11 203). Sales and
repurchases of own shares resulted in a net of MSEK 45 (265),
all related to hedging or deliveries of shares for the long-term
incentive plans described on page 129. Change in interest-bearing
liabilities was MSEK –2 238 (–7 330).
Employees
In 2024, the average number of employees in the Group increased
by 3 096 to 54 206. At year end, the number of employees was
55 146 (52 778), and the number of consultants/external work-
force was 3 001 (3 123). For comparable units, the total workforce
increased by 667. See also note 4.
Calculation of operating cash flow, MSEK 2024 2023
Operating cash surplus 47 099 45 781
Net financial items 151 –883
Taxes paid –9 470 –8 758
Pension funding –517 –512
Change in working capital 2 068 –5 775
Increase in rental equipment, net –2 444 –1 769
Cash flows from operating activities 36 887 28 084
Investments of property, plant and
equipment, net –4 162 –3 886
Other investments, net –1 736 –1 482
Cash flow from investments –5 898 –5 368
Adjustment for currency hedges of loans –8 476
Operating cash flow 30 981 23 192
Average number of employees (FTE) 2024 2023
Atlas Copco Group 54 206 51 110
– Sweden 1 680 1 576
– Outside Sweden 52 526 49 534
Business areas
– Compressor Technique 22 956 21 638
– Vacuum Technique 12 801 12 620
– Industrial Technique 10 196 9 746
– Power Technique 7 338 6 242
– Common Group functions 915 864
Atlas Copco Group 2024 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 20 599 (11 621) and profit
for the year amounted to MSEK 20 191 (11 374). The difference
between the years is mainly due to increased dividends from Group
Companies.
Financing
The total assets of the Parent Company were MSEK 204 674
(198 050). At year end 2024, cash and cash equivalents amounted
to MSEK 0 (0) and interest-bearing liabilities amounted to MSEK
35 002 (34 605). Equity represented 82% (82) of total assets and
non-restricted equity totaled MSEK 162 807 (156 444).
Employees
The average number of employees in the Parent Company was
126 (119).
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 82–87.
Appropriation of profit
The Board of Directors proposes to the Annual General Meeting
2025, a dividend of SEK 3.00 (2.80) per share to be paid for the 2024
fiscal year. Excluding shares currently held by the Company, the
proposed dividend corresponds to a total of MSEK 14 612 (13 647).
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 May 2, 2025, and the second with record date
October 21, 2025.
SEK
Retained earnings including reserve for fair value 142 615 979 719
Profit for the year 20 190 711 361
162 806 691 080
The Board of Directors proposes that these earnings
be appropriated as follows:
To the shareholders, a dividend of SEK 3.00 per share 14 611 841 946
To be retained in the business 148 194 849 134
Total 162 806 691 080
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 47 838 434 class A shares and 0 class B shares held
by the Group, 4 870 613 982 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 2024, 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 54–59, 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, in accordance with the old version in force before 1 July
2024. The scope and content of the sustainability report are
defined on page 81.
Atlas Copco Group 2024 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 2024 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
THE YEAR IN REVIEW – BUSINESS AREAS
Business areas
Key figures, MSEK 2024 2023 Change, %
Orders received 79 976 79 492 1%
Revenues 78 259 75 552 4%
EBITA* 20 302 19 073
– as a percentage of revenues 25.9 25.2
Operating profit 19 716 18 488 7%
Operating margin, % 25.2 24.5
Return on capital employed, % 85 85
Investments 1 760 1 091
Average number of employees 22 956 21 638
* Operating profit excluding amortization of intangibles related to acquisitions.
Key figures, MSEK 2024 2023 Change, %
Orders received 36 629 35 723 3%
Revenues 40 441 42 812 –6%
EBITA* 9 316 10 327
– as a percentage of revenues 23.0 24.1
Operating profit 8 541 9 607 –11%
Operating margin, % 21.1 22.4
Return on capital employed, % 20 22
Investments 1 358 1 742
Average number of employees 12 801 12 620
* Operating profit excluding amortization of intangibles related to acquisitions.
Key figures, MSEK 2024 2023 Change, %
Orders received 27 656 29 497 –6%
Revenues 29 522 28 453 4%
EBITA* 6 574 6 730
– as a percentage of revenues 22.3 23.7
Operating profit 6 066 6 183 –2%
Operating margin, % 20.5 21.7
Return on capital employed, % 21 21
Investments 604 738
Average number of employees 10 196 9 746
* Operating profit excluding amortization of intangibles related to acquisitions.
Key figures, MSEK 2024 2023 Change, %
Orders received 27 866 26 940 3%
Revenues 29 622 26 899 10%
EBITA* 5 943 5 490
– as a percentage of revenues 20.1 20.4
Operating profit 5 488 5 191 6%
Operating margin, % 18.5 19.3
Return on capital employed, % 18 22
Investments 2 940 2 089
Average number of employees 7 338 6 242
* 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
treatment equipment, air management systems, and service through a global network.
Compressor Technique, page 20
Vacuum Technique, page 26
The Vacuum Technique business area provides vacuum products,
exhaust management systems, valves and related products, and
service through a global network.
Industrial Technique, page 23
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 overall demand for the business area’s equipment and services remained basically unchanged. A weaker
order intake for equipment was compensated by a solid order development for the service business. The
business area continued investing in product development, digital capabilities, and market presence, and
a new division was created. In addition, 17 acquisitions were closed during the year.
Market development
The overall demand for equipment and service
remained basically unchanged, with a slightly
better development of the order intake in the first
half of the year than in the latter part. In total, the
order intake increased by 2% organically.
Solid order growth was achieved for the service
business in all regions. The order growth was
driven by increased demand for spare parts, main-
tenance, repair services, and service contracts,
which were supported by a rise in the number of
connected products and a larger installed base in
the market.
The order intake for equipment remained
largely unchanged, with increased demand in
Africa/Middle East and South America, while the
demand in Asia, Europe, and North America
weakened.
Orders for industrial compressors remained
essentially unchanged, with a slightly better
development for small and medium-sized com-
pressors than larger industrial compressors. The
demand for gas and process compressors was
solid, but the order intake did not fully reach the
previous year’s high level. Order volumes
decreased in all regions except Africa/Middle
East, where orders increased significantly.
Market presence and organizational
development
The business area continued to invest in innova-
tion during the year with increased investments
in research and development. Several new inno-
vative products were introduced to the market.
The product portfolio was expanded, particularly
for applications related to compression of gases.
By maintaining a focus on connected products
Sales bridge Orders received Revenues
2023, MSEK 79 492 75 552
Structural change, % +1 +1
Currency, % –2 –2
Organic*, % +2 +5
Total, % +1 +4
2024, MSEK 79 976 78 259
* Volume, price and mix
Revenues, MSEK
2023: 75 552
78 259
Operating profit margin
2023: 24.5%
25.2%
Return on capital employed
2023: 85%
85%
and data analytics, the business area enhanced
its ability to assist customers with service.
Investments were also made to increase mar-
ket presence by adding more salespeople to the
organization. The business area also strength-
ened its online market presence, resulting in an
increase in digital sales leads.
Multiple activities were conducted to enhance
the business area’s digital capabilities and seize
opportunities by leveraging AI (artificial intelli-
gence) across various domains, including R&D,
finance, customer interaction, and order
management, to mention a few.
Throughout the year, the business area contin-
ued to support customers in their sustainability
ambitions. In addition to developing and deliver-
ing a range of new energy-efficient products,
the business area also established a dedicated
organization focused specifically on helping cus-
tomers optimizing the energy efficiency of their
existing compressor rooms.
To further strengthen its focus on growth,
emphasizing an application-driven approach
to meet customers’ needs, a new division was
created, the Air and Gas Applications division.
The business area continued to invest in its
operational footprint during the year. Major
investments were made in a production and
R&D facility in Wuxi, China, a production and
R&D facility in Talegaon, India, a compressor
production facility in Istanbul, Türkiye, and in a
service center for gas and process compressors
in Houston, USA.
The business area also increased its presence
in targeted markets and customer segments
through a large number of acquisitions, see the
following section.
The business area closed in total
17 acquisitions in 2024:
• Hycomp Inc.
• Ace Air (NI) Ltd.
• Druckluft-Technik-Nord GmbH
• Pacific Sales & Service, Inc.
• Zahroof Valves Inc.
• Tecturbo
• Baraghini Compressori S.r.l.
• AE Industrial Ltd.
• Emcovele S.A.
• Kingsdown Compressed Air Systems Ltd.
• Compressed Air Technologies, Inc.
• Danmil A/S
• Easy Filtration S.r.l.
• Arlógica Máquinas e Equipamentos, Lda
• Pennine Pneumatic Services Ltd.
•
• Metalplan Equipamentos LTDA
For more information see page 110 or
www.atlascopcogroup.com.
Revenues, profits and returns
Revenues reached MSEK 78 259 (75 552), an
organic increase of 5%. The operating profit
increased by 7% to MSEK 19 716 (18 488), corre-
sponding to a margin of 25.2% (24.5). The mar-
gin was positively affected by currency and by
the combination of volume, price and mix, while
acquisitions had a negative effect on the operat-
ing margin. Return on capital employed was
85% (85).
0
20 000
40 000
60 000
80 000
20242023202220212020
0
10
20
30
40
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2024 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 reducing their environmental footprint.
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 hydro-
gen produced with renewable energy, LNG, car-
bon 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 applications where
there is a need for a consistent flow of low-
pressure air, for example in waste water treat-
ment, 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 CO
emissions
• Customers´ requirement of full utility room
optimization
• 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
• Demographics and consumer spending
• The transition to a low-carbon society
• Energy costs
• The need for decreased CO 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 area 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, 26%
Africa/
Middle East, 7%
Europe, 30%
South
America, 6%
Other, 16%
General manu-
facturing, 25%
Construction, 13%
Service, 13%
Process industry, 28% Automotive, 2%
Electronics, 3%
Share of revenues
Service, 43% Equipment, 57%
Orders received by customer category
Atlas Copco Group 2024 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
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
Oil-Free Scroll Medical
Air System
Oil-free gas screw compressors are essential equipment
aboard liquefied natural gas vessels
The Compressor Technique business area offers all major air compression technologies, gas treatment equipment, and air
management systems. The business area aims to provide customers with the best solution for every application.
INNOVATIONS DURING 2024
Several new products were introduced during
the year, including:
GA 11-30 FLX, a dual-speed oil-injected rotary screw
compressor, that can provide up to 20% energy
savings, with an option for over-the-air upgrade to
total variable speed capabilities for additional energy
efficiency.
MDG 450 Aircooled, a new energy-efficient air-
cooled desiccant dryer, that minimizes system
failures, production downtime, and costly repairs
by removing moisture from compressed air with
a guaranteed dew point of –40°C.
BBR CBG, CU CBG & HN CBG, a new range for com-
pressing biogas suitable when upgrading into bio-
methane for compressed natural gas refueling and
gas grid applications.
A new purifier for on-site generation of high-purity
nitrogen. The NPH operates in conjunction with a
nitrogen generator and can deliver nitrogen with a
purity level of above 99.999%.
Gas and Process,
President
Robert Radimeczky
MANAGEMENT
Compressor Technique, January 1, 2025
Business Area
President
Philippe Ernens
Compressor
Technique Service,
President Dirk Beyts
Industrial Air,
President Joeri Ooms
Oil-free Air,
President
Ben Van Hove
Air and Gas
Applications,
President Joeri Ooms
Medical Gas
Solutions, President
Melody Miller
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,
South Korea, India, Germany and Italy.
Atlas Copco Group 2024 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 overall demand for vacuum equipment and related services remained essentially unchanged.
Orders for equipment to the semiconductor and flat panel display industry increased, and solid order
growth for the service business was achieved, while the order intake for industrial and scientific
vacuum equipment decreased. The business area continued investing in product development and
in its operational footprint and closed five acquisitions.
Market development
The overall demand for vacuum equipment and
related services remained essentially unchanged.
Organically, the order intake increased by 2%.
The service business developed well with
increased demand from the semiconductor
industry as well as from scientific and general
industrial customers. The order intake increased
in all regions.
The demand for vacuum equipment, however,
was mixed. Orders for equipment to the semi-
conductor and flat panel industry increased
driven by strong development in Asia and a
somewhat increased order intake in Europe,
while orders in North America decreased.
Order volumes for equipment to industrial
and scientific vacuum customers, on the other
hand, decreased, primarily driven by lower order
intake in Asia, but also in North America. The
order intake in Europe was unchanged.
Market presence and organizational
development
The business area continued to focus on innova-
tion with further investments in research and
development. Several new innovative products
were introduced, targeting both the semiconduc-
tor and flat panel display market, as well as the
industrial and scientific vacuum market.
The business area strengthened its market
presence through improved product offerings,
partly as a result of acquisitions, and a continued
emphasis on connected products and online
activities.
Sales bridge Orders received Revenues
2023, MSEK 35 723 42 812
Structural change, % +2 +1
Currency, % –1 –1
Organic*, % +2 –6
Total, % +3 –6
2024, MSEK 36 629 40 441
* Volume, price and mix
Revenues, MSEK
2023: 42 812
40 441
Operating profit margin
2023: 22.4%
21.1%
Return on capital employed
2023: 22%
20%
Several AI initiatives (Artificial Intelligence) were
initiated during the year to further strengthen
support to customers, develop internal capabili-
ties and competence, and to improve internal
efficiency.
The business area supported customers in
reducing their environmental footprint through
increased delivery of energy-efficient products.
To reduce the environmental footprint of its
operations, the share of renewable energy con-
tracts in operations increased, particularly in Asia.
To enhance the operational footprint and
increase the presence and closeness to custom-
ers, major investments were made in a service
facility in Arizona, USA, a production facility for
dry vacuum pumps in New York State, USA, new
machinery in a production facility in Bengaluru,
India, and a production facility for turbo pumps in
Ina, Japan.
The business area closed in total
five acquisitions in 2024:
• Presys Co., Ltd., a manufacturer of vacuum
valves for the semiconductor market based in
South Korea.
• Montajes Electromecánicos e Ingeniería, S.A.
de C.V provides vacuum pumps and related
services to industrial customers in Mexico.
• AVT Services Pty Ltd., a company providing
vacuum pumps and system sales, and service
to customers in Australia.
• Anhui NOY Technologies Co. Ltd., a Chinese
helium leak detector manufacturer.
• ESA Service S.r.l, an Italian company designing
and manufacturing leak detection and gas
recovery systems.
For more information see page 110 or at
www.atlascopcogroup.com.
Revenues, profits and returns
Revenues decreased 6% to MSEK 40 441 (42 812),
corresponding to a 6% organic decline. The oper-
ating profit decreased 11% to MSEK 8 541 (9 607),
corresponding to a margin of 21.1% (22.4). Items
affecting comparability amounted to MSEK –4,
whereof MSEK –226 related to restructuring
costs, and MSEK +222, related to a representa-
tions and warranties insurance claim, attributed
to an acquisition dating back before 2020.
The adjusted operating margin was 21.1%
(22.4), negatively affected by lower revenue vol-
umes and dilutions from acquisitions. Currency
had a positive effect on the margin. Return on
capital employed was 20% (22).
0
12 000
24 000
36 000
48 000
60 000
20242023202220212020
0
5
10
15
20
25
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2024 23
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 – VACUUM TECHNIQUE
The market
Vacuum and abatement solutions are required
in several 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
batteries, 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
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, new
applications 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
• Further focus on excellence in key account
management
• 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 and 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, 26%
Africa/
Middle East, 1% Europe, 15%
Process
industry, 25%
General manu-
facturing, 10%
Electronics, 63%
Other, 2%
Share of revenues
Equipment, 74%Service, 26%
Orders received by customer category
Atlas Copco Group 2024 24
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 – VACUUM TECHNIQUE
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.
MANAGEMENT
Vacuum Technique, January 1, 2025
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
Koen Lauwers
Vacuum Technique
Service, President
Eckart Roettger
Semiconductor
Service, President
Paul Neller
Semiconductor,
President
Martin Tollner
Semiconductor
Chamber Solutions,
President Tim Heger ¹
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.
INNOVATIONS DURING 2024
Several new products were introduced during
the year, including:
Polycold MC2200, the new chiller for industrial
applications, offers high productivity, fast cooldown
cycles, and up to 20% improved power efficiency
compared to previous models.
Hydrogen Dilution (H2D-HPX), a new integrated
vacuum and abatement system, was introduced.
By diluting hydrogen from the production process,
customers can benefit from lower energy consump-
tion and a lower carbon footprint.
Warden System, a new integrated vacuum and
abatement system for the semiconductor market,
specifically designed for safe handling in hazardous
production processes.
The Leybold SOGEVAC SV55 BI² – SV70 BI², a
new rotary vane pump for analytical applications,
offers high energy efficiency and low noise level
and is particularly designed for mass spectrometry
applications.
Products and applications
¹ As of February 1, 2025
Atlas Copco Group 2024 25
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 – VACUUM TECHNIQUE
Industrial Technique
Although the demand for service increased, the overall order intake decreased, primarily due to weaker
demand for equipment from the automotive industry. The business area continued to invest in R&D,
expanded its digital capabilities, and further strengthened its focus on supporting customers to automate
their production processes. In total, four acquisitions were completed.
Market development
The overall demand for the business area’s
equipment and services weakened, especially
in the second half of the year, driven by weaker
equipment demand from the automotive indus-
try. In total, the order intake decreased with 5%
organically.
The service business continued to develop
well, and order growth was achieved in all major
regions.
Order volumes for industrial assembly and
vision solutions to the automotive industry
decreased. The reduced order volumes were pri-
marily driven by lower investment levels among
car manufacturers in Asia and Europe, but orders
decreased also in North America.
The demand for industrial assembly and vision
solutions to the general industry was mixed.
Orders from customer segments such as aero-
space and energy increased, whereas orders
from several other segments decreased. In total,
the order intake remained at the same level as
previous year. Order volumes increased in the
Americas and Europe, but decreased in Asia.
Market presence and organizational
development
The business area remained focused on innova-
tion and strengthened its product portfolio by
introducing several new products to the market
during the year.
The business area strengthened its capacity to
deliver tangible customer value through service
with a continued focus on developing and offer-
ing more connected products.
Sales bridge Orders received Revenues
2023, MSEK 29 497 28 453
Structural change, % +0 +0
Currency, % –1 –1
Organic*, % –5 +5
Total, % –6 +4
2024, MSEK 27 656 29 522
* Volume, price and mix
Revenues, MSEK
2023: 28 453
29 522
Operating profit margin
2023: 21.7%
20.5%
Return on capital employed
2023: 21%
21%
Market presence was further enhanced primarily
through continued investments in digital initia-
tives aimed at strengthening online interaction
with customers.
Through acquisitions (see the following sec-
tion) and through own product development, the
offering to support customers in automating
their production was expanded. To improve
internal efficiency and customer support, various
activities were carried out where AI (artificial intel-
ligence) capabilities were applied, including in
areas such as finance, software development,
technical documentation for customers, and
sales support.
In order to adapt the organization to the chal-
lenging business climate, especially related to the
automotive industry, some reorganizations were
carried out, primarily within the business area’s
operations in Europe.
The business area remained focused on sus-
tainability through various activities. Among
other things, dedicated training for general man-
agers, key R&D personnel, and divisional man-
agement was carried out. The training aims to
deepen participants’ understanding of the impli-
cations and opportunities with increased focus
on sustainability and provide tangible tools for
executing the divisional business strategies.
Major investments were made in new machin-
ery in a production facility in Tierp, Sweden, and
in a production and R&D facility in Shanghai,
China.
The business area closed in total four
acquisition in 2024:
• Swed-Weld AB, a Swedish provider of smart
automated screw and nut feeding systems
with focus on the automotive industry.
• Mont-Tech Ltd., a Czech engineering company
offering customized engineering solutions for
assembly automation.
• Air Way Automation Ltd, a US supplier of auto-
mated bolt feeding solutions to the automotive
and general industries.
• VisionTools Bildanalyse Systeme GmbH,
a German company that develops and sells
integrated solutions for quality control in
assembly lines.
For more information see page 110 or at
www.atlascopcogroup.com.
Revenues, profits and returns
Revenues increased 4% to MSEK 29 522 (28 453),
corresponding to a 5% organic increase. The
operating profit decreased 2% to MSEK 6 066
(6 183), including items affecting comparability
of MSEK –174 related to restructuring costs. The
operating margin was 20.5% (21.7). The adjusted
operating margin was 21.1% (21.7), negatively
affected by an unfavorable sales mix and dilution
from acquisitions. Return on capital employed
was 21% (21).
0
10 000
20 000
30 000
20242023202220212020
0
10
20
30
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2024 26
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 – INDUSTRIAL TECHNIQUE
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, enable automation 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, self-pierce
riveting, and flow drill fastening.
The market for machine vision becomes
increasingly important, driven by a growing
demand for automation, quality control and pro-
ductivity in industrial production. Machine vision
solutions are used in discrete production, such as
the automotive and electronics industry, and in
continuous production processes, such as metal
and paper production, advanced material manu-
facturing, and solar panels.
Market trends
• Automation in customers’ production
• Digitalization and demand for connectivity in
production
• Increased customer focus on reducing CO
emissions
• Customers’ development of 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 operational
footprint in targeted markets and segments
• Develop new innovative products and
solutions, offering increased quality and
productivity, 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, 27% North
America, 34%
Africa/
Middle East, 1%
Europe, 35%
South
America, 3%
Other, 8% General manu-
facturing, 23%
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 2024 27
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 – INDUSTRIAL TECHNIQUE
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, adhesive dispensing and
flow drill fastening solutions
Self-pierce rivets, adhesives, and flow-drill fasten-
ers are used in the automotive industry, driven by
the increased use of light materials and batteries
in car manufacturing. The business area offers
self-pierce rivets and equipment, dispensing
equipment for adhesives and sealants, and flow-
drill fastening equipment.
Self-pierce
riveting system
The Industrial Technique business area offers the most extensive range of industrial
power tools, assembly systems, and machine vision solutions on the market.
MANAGEMENT
Industrial Technique, January 1, 2025
Material removal tools, drills and other
pneumatic products
Pneumatic and electric drills, industrial grinders,
and percussive tools are used in several indus-
trial applications, for example in metal fabrication
and aerospace production. The business area
also offers air infrastructure for optimization of
pneumatic tools, and air motors that are used as
drive units in various industries and applications.
Machine vision solutions
Machine vision is a key technology for industrial
automation and digital manufacturing. The offer
is focused on quality control of surfaces, inline
meteorology and quality control, and 3D 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
Berthold Peters
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
INNOVATIONS DURING 2024
Several new products were introduced during
the year, including:
Avantguard, a new error-proofing solution for
assembly processes, targeting automotive, off-
highway, and energy customers. It manages factory
workflows, provides operator guidance, and
increases the quality of customers’ production.
XB range, a new cordless range of nutrunners, sup-
porting the air-to-electric transformation, primarily in
the general industry. It helps customers increase
production quality and efficiency through data
reporting and operator feedback.
PAINTSCAN Compact, a new compact robot-guided
vision sensor for quality assurance, supporting
improved inline inspection of painted surfaces for
the automotive industry.
A fully electric screw feeding solution, the Desoutter
eRapid. The system offers complete control and
traceability over the screw-feeding process.
Products and applications
Atlas Copco Group 2024 28
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 – INDUSTRIAL TECHNIQUE
Power Technique
The overall demand for products and services decreased, but the order intake increased thanks to
increased demand for service and specialty rental solutions, and contributions from acquisitions. The
business area strengthened its market presence and remained focused on innovation and connected
products. Two new divisions were created, and seven acquisitions were completed during the year.
Market development
The overall demand for equipment, service, and
specialty rental solutions decreased. However,
thanks to contributions from recent acquisitions,
the order intake increased.
The demand for specialty rental solutions
increased, and in addition to increased organic
order volumes, contributions from acquisitions
supported the order growth. The order intake
increased in all regions except North America,
where orders were flat. The demand for service
also increased with order growth in all regions.
Equipment orders decreased primarily due to
weaker demand during the first half of the year.
Order volumes decreased for portable com-
pressors and generators, driven by significantly
weaker demand in North America. The demand
for industrial pumps also decreased, but thanks
to contributions from acquisitions, the order
intake increased. Overall, equipment orders
increased in Europe and Africa/Middle East, but
decreased in North America and Asia.
Market presence and organizational
development
The market presence increased in targeted mar-
kets and segments. Several new products were
introduced to the market during the year. The
sales organization was divided into smaller units
in certain regions to enable a deeper focus on
specific geographic areas and customers and
improve market presence.
Sales bridge Orders received Revenues
2023, MSEK 26 940 26 899
Structural change, % +10 +9
Currency, % –1 –1
Organic*, % –6 +2
Total, % +3 +10
2024, MSEK 27 866 29 622
* Volume, price and mix
Revenues, MSEK
2023: 26 899
29 622
Operating profit margin
2023: 19.3%
18.5%
Return on capital employed
2023: 22%
18%
To better support the business area’s customers
and to further develop the service business, an
uptime center was established to analyze data
from connected products at customer locations,
enhanced in part by AI (artificial intelligence).
The business area remained committed to
supporting customers in their sustainability
ambitions as well as to reducing its own environ-
mental footprint. Examples of initiatives were the
launch of a hybrid generator with built-in solar
panel connection, the continued development of
the energy-storage offer, and investments in
solar energy and energy recovery in the business
area’s production facilities.
To be positioned for future growth and to
increase focus on selected markets and applica-
tions, two new divisions were created during the
year: the Portable Power and Flow division and
the Industrial Flow division. The new divisions are
operational since January 1, 2025.
During the year, investments were made in the
business area’s rental fleet, in a rental depot in
Barcelona, Spain, and production facilities for
portable compressors in Antwerp, Belgium, and
in Wuxi, China.
The business area also increased its presence
in targeted markets and customer segments
through several acquisitions, see the following
section.
The business area closed in total
seven acquisitions in 2024:
• KRACHT GmbH, a German manufacturer of
external gear pumps, fluid measurement,
valves, hydraulic drives, and dosing systems.
• Delta Temp, a Belgian company that provides
specialty rental solutions for industrial cooling
applications.
• Generator Rental Services, a company in
New Zealand providing specialty power rental
solutions.
• Integrated Pump Rental, a specialty rental pro-
vider of dewatering solutions in South Africa.
• Pomac BV, a Dutch company which develops
and manufactures hygienic pumps.
• Kinder-Janes Engineers Ltd, an industrial pump
distributor in UK.
• Perslucht Wilda B.V., a compressor distributor
headquartered in Netherlands.
For more information see page 110 or at
www.atlascopcogroup.com.
Revenues, profits and returns
Revenues increased 10% to MSEK 29 622
(26 899), corresponding to a 2% organic increase.
The operating profit increased 6% to a record
MSEK 5 488 (5 191), corresponding to a margin of
18.5% (19.3). The lower margin was primarily due
to negative effects from volume and dilution from
acquisitions. Currency had no material effect on
the operating margin. Return on capital
employed was 18% (22).
0
5 000
10 000
15 000
20 000
25 000
30 000
20242023202220212020
0
5
10
15
20
25
30
MSEK %
Orders received, revenues and operating margin
Orders
received
Revenues
Operating
margin
Atlas Copco Group 2024 29
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 – POWER TECHNIQUE
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 Tech-
nique business area focuses on a selected num-
ber of applications.
Multiple segments are served by the business
area’s offerings. 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 CO
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, 27% North
America, 27%
Africa/
Middle East, 8%
Europe, 31%
South
America, 7%
Other, 21% General manu-
facturing, 21%
Service, 6%
Electronics, 1%
Process industry, 26%
Construction, 24%
Automotive, 1%
Share of revenues
Equipment, 56%Service, 16%
Service
(Specialty
Rental), 28%
Orders received by customer category
Atlas Copco Group 2024 30
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 – POWER TECHNIQUE
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.
MANAGEMENT
Power Technique, January 1, 2025
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
Portable Power
and Flow, President
Marco Gravina
Principal product development and manu facturing
units are located in: Belgium, Germany, Spain,
the United States, China, and India.
Products and applications
INNOVATIONS DURING 2024
Several new products were introduced during
the year, including:
CPS 1600-150, a new portable compressor, primarily
for the North American market, with a compact,
lightweight, and robust design, offers high fuel
efficiency compared to similar products.
ZBP 120-120, a new medium-sized energy storage
system, enables the creation of microgrids at infra-
structure construction sites and can support hybrid
power plants. It is designed for a harsh environment
and can be recharged within an hour.
New range of surface dewatering pumps with
connectivity capabilities, designed to pump liquids
with high pressure and flow, and perform in the
harshest environment.
A new diaphragm process pump was introduced,
the LEWA triplex G3E, specially designed for
high-pressure applications and requires 30% less
space requirements than comparable products.
Industrial Flow,
President
Mikael Andersson
Atlas Copco Group 2024 31
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 – POWER TECHNIQUE
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Our approach to creating lasting value
Sustainability is a central part of Atlas
Copco Group’s mission and strategic
direction. We are committed to contribut-
ing to a sustainable development and our
technologies enable the transformation
to a low-carbon society.
By managing our environmental and social impact,
and by acting in an ethical way in all our business
relationships, we strive to create value for our
stakeholders and to society as a whole.
We focus our efforts to the areas where we have
identified our largest actual and potential impact
and where we see significant risks or opportunities.
Allocating resources and working systematically in
these areas help us reach our mission of achieving
sustainable, profitable growth.
This sustainability report has been prepared in
accordance with GRI Standards.
Atlas Copco Group 2024 32
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
General information
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 is integrated into the Group reporting and con-
solidation systems and is 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 98–99.
Most sustainability data is monitored and reported at local oper-
ating 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 verifi-
cation is done at each level before submitted to external auditors.
Estimations, assumptions and restatements
We make estimates and assumptions regarding certain informa-
tion and data, for example regarding greenhouse gas (GHG) emis-
sions in the value chain. Such estimates are in some cases based on
second-hand sources and may result in an increased level of uncer-
tainty. We provide information on these estimates and assump-
tions in connection with the respective data.
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 adjustments
have been made compared to previous years, this is clearly indi-
cated alongside the respective disclosure.
Changes in the reporting
In 2024, Atlas Copco Group has made alignments to the sustain-
ability report to prepare for reporting in accordance with ESRS from
2025 forward, including changing the report’s structure and using
the principles of a double materiality assessment.
The content of the report is based on the preliminary conclusions
of the double materiality assessment (DMA), see more details on
pages 40–41. Among the main changes compared to previous
year’s report are:
• Additional information related to our workforce. Data is reported
in headcount in addition to, or instead of, FTE.
• Further information related to the safety of end-users and to the
Group’s resource use and circular economy work.
• Waste data is presented in more detail per category since waste
has been assessed as material.
• Energy consumption now includes company vehicles.
Some disclosures that in the DMA were assessed to be below the
threshold for materiality have been included under the heading
Additional information at the end of the Environmental informa-
tion, as the disclosures are requested by certain stakeholders or
ESG rating institutes. This includes disclosures related to water and
energy used in own operations, biodiversity, and substances of
concern.
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 81.
Contact point
For questions about the sustainability report, please contact:
Anna Sjörén, Vice President Sustainability
BASIS FOR PREPARATION
Sustainability aspects are integrated in Atlas Copco Group’s way of
operating. We therefore report financial and sustainability data
annually in an integrated report. Our ambition is to present the
Group’s actual and potential impacts, risks and opportunities and
how we manage them, in a comprehensive and transparent way.
Reporting directives, regulations and frameworks
Atlas Copco Group’s sustainability report is prepared in accordance
with the requirements in the Swedish Annual Accounts Act.
Prepared in accordance with GRI Standards
The 2024 sustainability report has been prepared in accordance
with the requirements in the GRI Standards and applies to the
period January 1, 2024, through December 31, 2024, which is in line
with the Group’s financial reporting. This report was published on
March 20, 2025 and has been approved by the Board of Directors.
Preparations for new reporting directives
Atlas Copco Group will be subject to the EU Corporate Sustainabil-
ity Reporting Directive (CSRD) and will, in accordance with the
Swedish Annual Accounts Act, report according to the European
Sustainability Reporting Standards (ESRS) starting from the 2025
financial year. In preparation of the new requirements, the Group
conducted a double materiality assessment (DMA) in 2023, which
was updated and validated in 2024. The outcome and the identified
material sustainability topics form the basis of the 2024 year report.
Scope of consolidation
The sustainability report covers Atlas Copco Group, including all
units that are consolidated in the Group’s financial statements,
see pages 156–158. Information relating to business relationships,
including the Group’s upstream and downstream value chain, is
included throughout the report, and clearly identified as such.
Operations divested during the year are excluded, while
acquired units are gradually included according to the Group’s
internal reporting guidelines. This may at times cause changes in
reported performance.
Atlas Copco Group 2024 33
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
General information, continued
Councils and boards
Sustainability governance structure
Group
Management
Business
areas
Divisions
and entities
Enterprise risk management
Sustainability managers
SHEQ managers
Internal audit and assurance
SUSTAINABILITY GOVERNANCE
Sustainability governance structure and responsibilities
The Board of Directors
The Board of Directors has the overarching responsibility for over-
seeing Atlas Copco Group’s strategic direction, including plans and
targets to ensure that we reach our mission of achieving sustain-
able, profitable growth. The Board oversees major capital expendi-
tures, acquisitions and divestments, and considers sustainabili-
ty-related risks in these processes. The Board of Directors is also
the owner of the Group’s Code of Conduct which is the governing
document for how all employees, including the Board itself, should
act towards all stakeholders.
The Board of Directors receives quarterly updates by the Presi-
dent and CEO on the Group’s progress in relation to selected sus-
tainability targets, such as diversity and science-based emissions
reduction targets. The Board is also, together with Group Manage-
ment, responsible for the preparation, review and approval of the
Group’s annual sustainability report, which covers material impacts,
risks and opportunities, and sustainability-related performance.
For further details about the Board of Directors, its committees
and responsibilities, composition, and Board members experience,
see the Corporate governance report on pages 90–93.
Group Management
Each member of Group Management is responsible for the imple-
mentation and follow-up of the Group’s strategy and targets,
although the President and CEO has the ultimate responsibility.
Progress in relation to selected targets is part of the variable com-
pensation for members of Group Management as well as for other
employees, see page 35. The Vice President Sustainability is
responsible for coordinating the Group’s sustainability work and
reports to the SVP Chief Communications Officer, who is a member
of Group Management.
Group functions, councils and boards
At Group level, a sustainability team provides coordination and
support to the entire organization, in close collaboration with
Safety, Health, Environment and Quality (SHEQ) representatives
and sustainability representatives in each business area.
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 representa-
tives for HR, Holding and Controlling. The SHEQ council comes
together each quarter to discuss actions, policies and guidelines
to support the organization in reaching set ambitions.
The Group’s Compliance Board oversees the implementation
and compliance with the Code of Conduct. It includes two members
of Group Management: the SVP Chief Legal Officer and the SVP
Chief Communications Officer, the Vice President Sustainability,
Corporate Counsel Compliance, and Holding representatives. The
compliance board also addresses training needs, risk assessments
and action points related to the implementation of the UN Guiding
Principles.
The Group’s Sustainability Reporting and Disclosure council is
responsible for overseeing the development in the sustainability
reporting landscape and ensuring that the Group’s reporting is in
compliance with applicable directives, standards and regulations.
The council is chaired by the Vice President Sustainability and it
includes representatives from relevant Group functions, as well as
business area sustainability representatives and sustainability con-
trollers. The council reports regularly to a steering committee con-
sisting of the SVP Chief Financial Officer, SVP Chief Communications
Officer, SVP Chief Legal Officer, SVP Chief Human Resources Officer
and Vice President Investor Relations.
Business areas and divisions
Following the Group’s decentralized organizational structure,
implementation and execution of strategies takes place in the divi-
sions, which are separate operational units. 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 the three-year plan,
and that progress is followed up and reported to the Group.
Sustainability managers coordinate the efforts at business area
level, while Safety, Health, Environment and Quality (SHEQ) manag-
ers support the work in the operational entities and divisions.
Sustainability-related training and expertise
To keep informed on the development in areas relevant to the
industry and the company in particular, members of the Board and
Group Management engage with different experts and thought
leaders. Internal subject matter experts are also an important
source of knowledge transfer.
Board members have participated in the Group’s climate aware-
ness training, which was launched in 2023. In 2024, the Board was
included in the Code of Conduct compliance statement process.
They were also invited to participate in our new circularity aware-
ness training. A part of the Group’s annual executive seminar was
also dedicated to different sustainability-related matters, from
geopolitics to ESG reporting.
Enterprise risk management (ERM)
Sustainability-related risks are included in the Group’s ERM frame-
work as well as in the overall risk assessment process which is con-
ducted annually on divisional level. The results are aggregated at
Atlas Copco Group 2024 34
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
General information, continued
business area and Group level. Results from risk assessments
performed by the Group’s holding companies and by corporate
functions are provided as insights to the divisions when they
evaluate their key risks. Workshops have for instance been con-
ducted in respect of climate change, human rights and compliance
risks. An overview of the Group’s key risks, including the most sig-
nificant sustainability-related risks, is described in the section
Risks, risk management and opportunities on pages 82–87.
Sustainability-related performance in incentive schemes
The variable compensation is limited to a maximum of 80% of the
base salary for the President and CEO, 60% for Business Area
Presidents, and 50% for other members of Group Management.
Variable compensation 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. The guidelines
for executive remuneration in Atlas Copco Group are reviewed
annually by the Board of Directors and presented to the annual
general meeting for approval at least every four years. For more
information on the guidelines for remuneration, see page 119–120
and the Group’s remuneration report.
Sustainability reporting risks and internal controls
Atlas Copco Group’s sustainability reporting falls under the same
internal control processes as financial reporting, including a regu-
lar assessment of risks related to the reporting process. The audit
and control processes and procedures are described in the section
Internal control over financial and sustainability reporting, see
pages 98–99.
The main risks relate to incomplete or inconsistent reporting,
and to the accuracy of data, due to for example reporting errors or
estimations, and the availability of upstream and/or downstream
value chain data. We regularly provide training to relevant employ-
ees on reporting guidelines and processes, as well as information
about changes and identified weaknesses and risks. We also work
continuously to improve data quality and accuracy. As an example,
environmental data is compared to costs as a way to identify
unusual variations. Certain controls are also in place to ensure logic
in data entry. To further strengthen the governance around our
reporting and disclosure, we formed a new Sustainability Reporting
and Disclosure Council in 2022.
The Group’s external auditors provide limited assurance of the
sustainability statement. The assurance process is risk based, and
the auditors provide feedback on their risk assessment. The assur-
ance activities performed by the external auditors are described in
the assurance report on page 81.
Sustainability policies, guidelines and standards
Code of Conduct
The Code of Conduct is the Group’s central guiding policy which
sets clear requirements for ethical business conduct that incorpo-
rate integrity, fairness and respect in all operations. All employees,
business partners, and the Board of Directors are expected to
adhere to the principles in 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.
All employees are required to complete a leader-led ethics train-
ing every two years, which is based on ethical dilemmas. They also
need to annually sign a Code of Conduct compliance statement, a
process which includes a shorter online version of the classroom
training. 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: the global Safety, Health, Environment and Quality
policy ensures robust standards for the safety and well-being of
our employees and others affected by our operations, as well as
an environmental and quality perspective on techno logies, prod-
ucts and services. The policy applies to all employees in the
Group and is available through the internal handbook The Way
We Do Things and on our website. The President and CEO has the
overall responsibility of the policy, while divisional presidents are
responsible for its implementation. The policy is reviewed regu-
larly by the SHEQ council and signed by the President and CEO.
• 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.
Atlas Copco Group 2024 35
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Operating units¹ with management system standards, % ISO 9001 ISO 14001 ISO 45001 Triple certification
Units required to be certified
Certified units 87 79 76 75
Total workforce covered by certification 94 90 86 86
All production and distribution units
Certified units 79 66 62 61
Total workforce covered by certification 93 86 80 80
All units
Certified units 68 61 58 58
Total workforce covered by certification 89 85 82 81
Employees covered by certification 89 85 82 81
Additional workforce covered by certification 89 83 81 81
¹ Including acquisitions.
Statement on sustainability due diligence
Sustainability due diligence is the process whereby we identify,
prevent, mitigate and report actual and potential negative impacts
on the environment and people as a consequence of the Group’s
activities. Requirements for sustainability due diligence and risk
management are integrated in our processes and procedures
through the Group’s policies and guidelines, such as our Code of
Conduct, human rights statement, and SHEQ policy.
The Group’s due diligence practices are guided and inspired by
relevant frameworks such as the OECD Guidelines for Multinational
Enterprises and the UN Guiding Principles on Business and Human
Rights. Such due diligence is conducted through a combination of
desktop exercises, and through direct and indirect dialogues with
our stakeholders.
The sections on each material sustainability topic provides an
overview of our risk assessment and due diligence processes in
relation to the specific topic, our identified adverse impacts and
actions taken to address them, and the results of these efforts.
The table to the right indicates where in our sustainability state-
ment we describe our due diligence process, including how the
main aspects and steps of the process are applied.
Management system standards
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 (occupational
health and safety). All business areas operate under triple certifi-
cates 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 the table for
the 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 within the two-year timeframe
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 commit to a
triple certification.
General information, continued
Core elements of due diligence Pages in the sustainability statement
a) Embedding due diligence in governance, strategy and business model Pages 34–35
b) Engaging with affected stakeholders in all key steps of the due diligence Pages 39, 60, 68, 69, 73
c) Identifying and assessing adverse impacts Pages 40–41, 44, 60, 63, 73
d) Taking actions to address those adverse impacts Pages 45–46, 49–50, 61–63, 68–69, 73
e) Tracking the effectiveness of these efforts and communicating Pages 45, 49–50, 60–64, 68–69, 71
Atlas Copco Group 2024 36
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
STRATEGY, BUSINESS MODEL AND VALUE CHAIN
Sustainable, profitable growth
Atlas Copco Group’s mission is sustainable, profitable growth. We
aim to continuously deliver growth with a positive impact on soci-
ety, while promoting diversity and inclusion and reducing our envi-
ronmental impact. We also consider the perspectives of our various
stakeholders in our value creation. Our purpose is to develop ideas
and technologies that enable our customers to grow and drive
society forward.
The Group’s business areas offer a wide range of products and
services for different end markets and applications. This includes
compressed air and gas solutions, vacuum solutions, energy solu-
tions, dewatering and industrial pumps, industrial power tools, and
assembly and machine vision solutions. For more information
about our products, markets and customer segments, see page 2
and the business area sections on pages 19–31.
Being at the forefront of technology and developing solutions
that create value for our customers and society has always been
the foundation of Atlas Copco Group’s operations, and continues to
be so. In recent years we have directed increased resources into
developing technologies and solutions that enable the transforma-
tion to a low-carbon society.
Our ambition is to offer the most energy-efficient products and
technology for each application. We strive to match the require-
ments and needs of our customers and their ambitions to reduce
their climate impact. We have also identified significant business
opportunities in new segments connected to society’s need for new
sources of energy, new modes of transportation and automation.
For example, through partnering with our customers, we contrib-
ute in the development of energy storage solutions and products
used in the production of renewable energy, such as solar panels,
wind turbines, carbon capture and hydrogen handling. We remain
committed to reducing the climate impact of our own operations
and of our products.
Business model
Innovating for a positive impact
At Atlas Copco Group, innovation is fundamental to continually
delivering value to our customers and society, and thus to our
business success. Products are designed internally, with a life cycle
General information, continued
approach, and research and development expenditures corre-
spond to about 4% of the Group’s revenues. Through leading tech-
nologies, we aim to develop new products and solutions that are
critical to our customers’ operations and improve productivity to
support their success.
Outsourced production and resource efficiency
Manufacturing of components that are critical to our equipment’s
performance and assembly of equipment are generally carried out
in our own facilities. For other components, we leverage the capac-
ity and competence of our business partners. Purchased compo-
nents account for a majority ot the product cost.
We continuously strive for improved operational efficiency and in
order to optimize production flows, the assembly is typically lean,
and the final product is generally shipped directly to the end user.
With a focus on responsible use of resources – human, natural and
capital – we create value for customers, employees, business part-
ners, shareholders, and for society.
Sales and service
Equipment sales generate about 63% of Group revenues, and
manufacturing and logistics are organized in a flexible way so that
we can adapt quickly to changes in demand.
Service represents 37% of our revenues and is the responsibility
of dedicated divisions in each business area. Our service offering
includes the development of service products, technical support
and maintenance, in many cases supported by data analysis from
connected equipment. We seek to perform more service on a
higher share of the installed base of equipment and through our
strong service offering, we support customers in getting the most
value out of their investments. This helps us build close customer
relationships, while increasing resource efficiency through extend-
ing the durability of products and solutions.
For more information on how we do business and create value
for different stakeholders, see pages 5–11.
Atlas Copco Group 2024 37
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Our value chain
An assessment of our value chain has been conducted as part of
the double materiality assessment, covering upstream and down-
stream activities, and our own operations. We work actively to max-
imize positive and minimize negative impacts along the value chain,
as well as to reduce risks and take advantage of opportunities.
Collaboration with business partners and other stakeholders is
essential in this work.
Upstream value chain
Atlas Copco Group has a large supplier base and purchased com-
ponents account for a majority of the product cost. A significant
part of our impact from processing of raw materials for our prod-
ucts therefore originates from the upstream value chain. Our
choice of suppliers is therefore of great importance to our impact
from a social and environmental perspective. Nearly half of our
suppliers are based in Europe, a significant part in Asia/Oceania,
and the remainder are located in North America and South America.
The risks in these geographic markets vary greatly, in terms of
human rights, including working conditions and freedom of associ-
ation, as well as environmental protection. Through responsible
purchasing processes and collaboration with suppliers we strive
to have a positive impact for workers in the value chain and to pro-
mote better standards in society. Climate change can pose risks for
suppliers in some regions and lead to disruptions in the supply
chain. Read more in the topical sections Climate change on page
44, Workers in the value chain on page 68, and Relationships with
suppliers on page 73.
Own operations
The Group has an outsourced production model. This means that
we mainly manufacture key components and assemble equipment
in our own production facilities, which are located in Europe, Asia/
Oceania, and the Americas, close to our customers. However, some
raw materials are purchased and processed in our own operations.
Our products are designed in-house with a life cycle perspective
aiming at reducing the environmental impact while offering other
tangible customer values and benefits from a sustainability per-
spective. We have assessed that the environmental impact of these
activities are relatively low compared to those that take place down-
stream and upstream the value chain.
In 2024 we had more than 55 000 employees in 73 countries at
year end. Almost half of our employees work in marketing, sales or
service. As an employer, we have a significant impact on our work-
force, for example in terms of occupational health and safety, and
opportunities for growth and development, see pages 60–67.
Downstream value chain
Atlas Copco Group has a global reach with sales in around 180
countries and a very diverse customer base. Sales and service
mainly take place directly but also indirectly, via distributors. More
than 95% of the greenhouse gas emissions along our value chain
are generated when our customers use our products, and we see
great opportunity in continuously developing products that are
more energy efficient, as well as in the electrification of products.
To further reduce the impact and increase circularity, we design
our products with a life cycle perspective, which includes end of life.
Through our service offering we also ensure the repair, mainte-
nance and reuse of products, extending their useful life and mini-
mizing waste.
Suppliers of components
and materials
Atlas Copco Group
End
of life
Customers
OUR VALUE CHAIN
UPSTREAM OWN OPERATIONS DOWNSTREAM
Indirect sales
General information, continued
Atlas Copco Group 2024 38
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Stakeholder
group
Methods of
engagement
Key topics and
expectations
Customers • Customer visits
• Customer events
• Customer satisfaction
surveys and interviews
• Product safety
• Product innovation
• Product carbon impact
• Product resource-
efficiency and circularity
Employees • Yearly performance
and development
dialogues
• Regular training and
coaching
• Employee surveys
• Work councils
• Employee representa-
tion on the Board
• Occupational health
and safety
• Diversity and inclusion
• Working conditions
• Training and skills
development
• Compensation and
benefits
Shareholders
and financial
market
participants
• Capital market days
• Roadshows,
conferences, meetings
and calls
• Annual general
meeting
• Financial reports and
presentations
• Growth and profitability
• Risks and opportunities
management
• Climate and environ-
mental impact
• Ethical business
conduct
• Diversity and gender
balance
• Corporate governance
Society • Participation in inter-
national collaborations
and industry initiatives
• Local engagement
through companies
and regional Holding
companies
• Surveys and interviews
• Interviews, meetings
and calls with media
• Climate and environ-
mental impact
• Compliance with social
and environmental
regulations
• Human rights
• Labor market issues
Business
partners
• Strategic
collaborations
• Regular on-site
meetings
• On-site evaluations
and supplier audits
• Surveys and interviews
• Occupational health
and safety
• Human rights and
labor conditions
• Ethical business conduct
• Climate and environ-
mental impact
Interests and views of stakeholders
As a global group, it is vital to ensure accountability for our actual
and potential impact on the economy, environment and people.
The Group continually and systematically engages with stakehold-
ers, internal as well as external, on material sustainability matters.
This engagement typically involves Group functions such as the
sustainability, investor relations and media relations teams, and
functions at business area/divisonal level. Due to the decentralized
structure of the Group, the local dialogue and collaboration that
takes place through our local units and holding companies is also
central to our stakeholder engagement.
Our stakeholder engagement helps us understand, prioritize
and manage the sustainability-related impacts, risks and opportu-
nities of our organization and of our business relationships along
the value chain. The dialogues are also crucial to pro actively identify
stakeholders’ perspectives, concerns and expectations.
The insights we gain from our stakeholder engagement are
communicated to affected internal stakeholders and inform our
decision-making processes to help strengthen our strategy and
improve our response. This includes, for example, updates to
Group policies and guidelines, new trainings for employees, prod-
uct improvements, and risk-mitigation measures. In 2023 and
2024, the insights also served to inform our preliminary double
materiality assessment (DMA), see pages 40–41 for more details.
The DMA, including stakeholder input, was also an important start-
ing point for our work on formulating updated Group sustainability
targets, for the years 2025–2027, see page 42.
Our methods of engagement with key stakeholder groups,
and the key topics and concerns raised by them are summarized
in the table on this page.
For additional information on the Group’s stakeholder
engagement, see the chapters Own workforce and Workers
in the value chain.
General information, continued
Atlas Copco Group 2024 39
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
IMPACTS, RISKS AND OPPORTUNITIES
About the double materiality assessment
In 2023, Atlas Copco Group initiated a voluntary double materiality
assessment (DMA) in order to determine the Group’s material
impacts, risks and opportunities in relation to sustainability mat-
ters. The initial assessment was done with the support of an inde-
pendent consultancy and in accordance with the requirements of
ESRS. The work continued in 2024, including a review of the results
and further validation with internal stakeholders.
Double materiality approach
The assessment followed the ESRS principles of double materiality,
according to which a sustainability matter is deemed material out
of one or both of the following perspectives:
Impact materiality – the Group’s actual or potential impact on
people and/or the environment through our own operations and
business relationships; and/or
Financial materiality – sustainability-related risks and opportunities
that may affect the Group’s cash flows, development, business
performance, position, cost of capital or access to finance.
Double materiality assessment process
The double materiality assessment was conducted in six steps:
1. Identification of gross list of ESG topics
Based on the gross list of sustainability matters and topics, pro-
vided in the draft ESRS 1 General Requirements, an initial assess-
ment was conducted of each topic in relation to Atlas Copco Group.
This included the Group’s business activities, locations, sector and
value chain. Other sustainability issues, that are not covered by the
ESRS but could potentially be material for the Group, were also
addressed.
2. Stakeholder dialogues and review of processes
In order to ensure that the assessment was aligned with existing
processes and stakeholder dialogues, processes and documents
were reviewed, and interviews were conducted involving a broad
representation of internal subject-matter experts and functions.
These included Investor Relations, Group Risk Management and
Insurance, the Group Purchasing Council, and business area sustain-
ability representatives. Employee perspectives were obtained via
employee representatives and the HR function, and from Insight, the
Group’s employee survey. Insights on customer perspectives and
market conditions were provided by the business areas.
Social impacts – Impacts related to human rights were mapped
through the enterprise risk management process and internal
documentation. Other social impacts, such as those related to own
workforce, were mapped through internal documentation and
processes as well as ongoing stakeholder dialogue through estab-
lished channels.
Environmental impacts – Environmental impacts, such as those
related to GHG emissions and other climate-related risks, as well as
pollution and water, were mapped through documentation and
insight provided by the business areas, as well as ongoing climate-
related work and stakeholder dialogue through established chan-
nels. Other environmental impacts were mapped using the above
mentioned processes and methodologies as well as through an
initial internal biodiversity impact assessment. Environmental
impacts from resource use and circular economy were mapped
through the environmental management system for the Group’s
business activities, and existing circularity work, including internal
interviews.
Environmental risks and opportunities – Climate-related physical and
transition risks and opportunities were mapped through the enter-
prise risk management process and a global warming scenario
analysis, following the recommendations of TCFD. Other environ-
mental risks and opportunities, such as those regarding pollution,
resource use and circular economy, were mapped through the
enterprise risk management process, insights and documentation
from business areas, as well as ongoing stakeholder dialogue
through established channels and existing circularity work.
Identified impacts, risks and opportunities in the aforemen-
tioned processes were mapped against the correlating sustainabil-
ity topic in the ESRS list of topics and sub-topics.
The existing assessment methods were merged with the meth-
ods outlined in the adopted ESRS and used in the impact and finan-
cial materiality assessments. The mapped impacts, risks and oppor-
tunities were identified over the short-, medium- and long-term
time horizons defined in ESRS as well as to where in the value chain
they are concentrated and the affected stakeholder.
Business conduct-related impacts, risks and opportunities
– Impacts, risks and opportunities in relation to business conduct
matters were mapped based on conclusions from Atlas Copco
Group’s existing stakeholder dialogues, internal documentation
and desktop review. It also involved a mapping of geographic areas
with elevated potential impacts or risks associated with corruption
and bribery.
Identification of gross
list of ESG topics
Stakeholder dialogues
and review of processes
Impact materiality
assessment
Financial materiality
assessment
Review and prelimi-
nary approval
Validation and
final approval
DOUBLE MATERIALITY ASSESSMENT PROCESS
General information, continued
Atlas Copco Group 2024 40
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
3. Impact materiality assessment
After mapping the Group’s positive and negative, actual and poten-
tial impacts on people and the environment, the impacts were
scored and prioritized. Negative impacts were scored based on
severity, a combination of scale, scope and remediability, and likeli-
hood. Severity was prioritized over likelihood for negative impacts
on human rights. Positive impacts were scored based on their
scale, scope and likelihood.
Appropriate thresholds were established based on the quantita-
tive assessment and existing processes. We used the same catego-
rization and grading as in the enterprise risk management process,
that is, low, medium, high and extreme. Impacts that received a
score of high or extreme were deemed as material.
4. Financial materiality assessment
After mapping sustainability risks and opportunities for the Group,
the respective potential financial effects were assessed based on
their size and likelihood of occurring. The scoring was aligned with
the existing enterprise risk management process, that is, low,
medium, high and extreme. Appropriate thresholds were estab-
lished based on the quantitative assessment and existing pro-
cesses. Risks and opportunities that received a score of high or
extreme were deemed as material.
5. Review and preliminary approval
The preliminary results of the double materiality assessment were
reviewed and validated by representatives from the Group’s SHEQ
council and the DMA project Steering committee. It was also
approved by the business area management teams and Group
Management.
6. Validation and final approval
Fully understanding Atlas Copco Group’s impacts, risks and oppor-
tunities associated with various sustainability topics is a complex
process. Therefore, in 2024, we have continued the work that
started in 2023, and reviewed the results of the initial assessment,
including further calibration and validation involving internal
subject-matter experts and stakeholders.
During the year, we have taken several steps to gain more knowl-
edge so that we can make informed decisions, including a continu-
ation of a biodiversity impact assessment that started in 2023 and a
country specific human rights assessment. We have also further
developed our processes related to physical climate risk exposure
and water scarcity.
As part of the review we have further assessed some of the iden-
tified potential positive impacts. Here, we have chosen to adopt a
cautious approach to make sure that we do not categorize our
measures to mitigate negative impacts as a positive impact. We
have also been cautious when it comes to identifying opportunities
as the financial effects of such are difficult to quantify.
The materiality assessment process and the results have been
presented to and approved by the Board.
Moving forward, we will continue to gather more information
and follow up on a number of topics that are close to the threshold
of being material. This is an ongoing process and the results of the
double materiality assessment will be reviewed annually and is sub-
ject to changes and updates.
Outcome of the double materiality assessment
As a result of the double materiality assessment process, we identi-
fied the material sustainability-related topics listed in the table
below. A summary of the identified material impacts, risks and
opportunities, and where they occur in the value chain, is pre-
sented in the respective topical chapter, together with correspond-
ing disclosures on our commitments, policies, actions and targets.
Environment
Climate change • Climate change mitigation
• Energy
Resource use and
circular economy
• Resource inflows, including resource use
• Resource outflows related to products
and services
• Waste
Social
Own workforce • Working conditions
• Equal treatment and opportunities for all
Workers in
the value chain
• Working conditions
• Equal treatment and opportunities for all
• Other work-related rights
Consumers and
end-users
• Personal safety of consumers and/or
end-users
Governance
Business conduct • Corporate culture
• Management of relationships with
suppliers
• Corruption and bribery
General information, continued
Atlas Copco Group 2024 41
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
GROUP
TARGETS
F
I
N
A
N
C
E
G
O
V
E
R
N
A
N
C
E
S
O
C
I
A
L
E
N
V
I
R
O
N
M
E
N
T
Financial value
creation
Climate
Circularity
Diversity and
inclusion
Learning and
development
Safety, health
and well-being
Community
engagement
Resource efficiency
in sourcing
Business partner
commitment to
business ethics
Employee
commitment to
business ethics
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
General information, continued
¹ Significant direct material suppliers are all external suppliers of goods, 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 purcha-
sing threshold is lower (approximately 13% of set value).
We regularly review our Group sustainability targets to
make sure that our priorities are aligned with our most
material sustainability matters and stakeholders’ expecta-
tions. In 2024, we presented updated targets for the years
2025–2027.
The review of the sustainability targets carried out in 2024 was
based on our insights from the double materiality assessment
(DMA) in 2023. In the process, some of our current targets have
been reformulated or discontinued.
Inclusive target setting process
Understanding our stakeholders’ expectations about how we
as a Group should manage our impact, risks and opportunities
linked to our material sustainability matters was the starting
point in the sustainability target review.
Internally, we conducted a survey with the Group’s subject
matter experts and representatives from relevant functions.
The perspective and opinions of the Group’s employees were
also obtained from interviews conducted during the DMA.
The perspectives of external stakeholders, such as suppliers,
customers and distributors, were gained through several inter-
nal workshops with the Group’s functional representatives,
councils and boards, for example the purchasing council and
market councils. The Investor Relations department was also
an important source of information.
The above mentioned methods were complemented by desk-
top studies of relevant industry reports and country analyses,
as well as a review of the regulatory landscape.
The updated targets were approved in turn by the business
area management teams, the executive committee meeting
and finally by the Board of Directors.
UPDATED SUSTAINABILITY TARGETS FROM 2025
Reflecting the Group’s raised ambitions
Most of the Group’s sustainability targets
are still relevant and remain unchanged. The
targets we have updated reflect our raised
ambitions within areas such as the climate,
circularity and gender balance. We have also
added a target related to trade compliance
and fair competition. The long term targets
remain unchanged. The main updates to the
Atlas Copco Group targets are:
Circularity principles in product
development
Our target of developing a Group-common
methodology for assessing circularity has
been achieved and replaced with a new
target. Through this target, the Group com-
mits to systematically applying circularity
principles in our product development,
covering all new and redesigned products
by 2027.
Climate targets beyond 2030
Since 2021, we have had science-based
targets in place to reduce greenhouse gas
emissions throughout the value chain by
2030 in line with the Paris Agreement.
We have now committed to developing a
climate transition plan by the end of 2026,
including long-term climate targets beyond
2030 for scope 1, 2 and 3.
Women in leadership positions
Atlas Copco Group is committed to diver-
sity and inclusion, where gender balance
throughout the organization is an import-
ant aspect. This is why we have added a
target to reach 25% women in leadership
positions by 2030, in addition to the current
target of 30% women employees the same
year.
Supplier engagement in ESG assessment
Since 2024 we are further strengthening
our due diligence efforts by implementing
a new Group wide third-party tool for
assessment of suppliers. From 2025 we will
measure and report the share of significant
direct material suppliers ¹ engaged in the
assessment of environmental, social and
governance aspects.
Trade compliance and fair competition
training
Atlas Copco Group supports fair competi-
tion to ensure equal conditions for busi-
ness. Awareness in trade compliance rules
and regulations is key to navigate a con-
stantly changing geopolitical landscape.
For these reasons, we have added a target
that employees in relevant selected target
groups will participate in training in trade
compliance and fair competition.
For a complete overview of the Group’s
updated sustainability targets, see page 7.
For more details, see Targets and metrics
in the respective topical chapter.
Atlas Copco Group 2024 42
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
• General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
General information, continued
Contributing to the United Nations’ Sustainable Development Goals
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 CO 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 memberships
of associations
Atlas Copco Group is a signatory to the UN Global Compact,
a strategic policy initiative for businesses that are committed
to ten universally accepted principles in the areas of human
rights, labor, environment and anti-corruption. The Group is
also active in a number of international organizations and
industry collaborations 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.
ESG recognitions
In 2024, Atlas Copco Group received, among others, an AA
rating in the MSCI ESG Ratings assessment, and Prime status
by ISS ESG rating. We remain a constituent of the FTSE4Good
Index Series. Atlas Copco Group scored a B by CDP for the
climate-related disclosure and a C for the water-related
disclosure.
Atlas Copco Group 2024 43
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Environmental information
CLIMATE CHANGE
Atlas Copco Group generates greenhouse gas (GHG) emissions
that contribute to climate change. The impact occurs in all parts of
the value chain, including upstream, with the extraction and pro-
cessing of raw materials, and suppliers’ production of components.
They also occur in our own operations, from energy used in manu-
facturing and assembly processes, office buildings and company
cars. However, the vast majority of the emissions and energy con-
sumption derives from our downstream value chain, when our cus-
tomers use our products, causing a negative impact over the short,
medium and long term. A majority of our products consume a sig-
nificant amount of energy throughout the lifecycle. This is where
we focus our efforts. We also see significant business opportunities
in constantly developing more energy efficient products and tech-
nologies, and by enabling technologies, such as the development
of renewable energy, that are strategically important to the transi-
tion to a low-carbon society.
Climate-related risks and opportunities
Climate-related risks, such as physical risks for operational entities
or transition risks related to markets or products, and the related
financial implications, are assessed annually at divisional level, as
part of the Enterprise Risk Management (ERM) process. An aggre-
gated analysis of the risks is presented annually to Group Manage-
ment. Read more about the risk management process on page 82.
As climate-related risks and opportunities are closely related,
some opportunities for our divisions may also be identified through
the ERM process. However, opportunities related to climate
change, the transition to a low-carbon society and to the develop-
ment of renewable segments are primarily identified within our
divisions, during the strategy development process ahead of new
strategy periods, as well as continuously within our operations.
Physical risks
A changing climate implies greater acute physical risks due to more
frequent and/or more severe weather conditions, that could impact
suppliers, operations 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,
including disruptions in production or logistics.
Both acute and chronic natural hazards may pose a risk to plants
and equipment, resulting in losses. The Group’s loss prevention
program supports the decision-making process for highly exposed
sites, including the prioritization of major investments, and risk-
mitigation measures.
The Group has a global network of suppliers that provides resil-
ience against local or regional disruptions. We regularly review the
logistics systems we rely on for transportation of goods to ensure
they are resilient to physical risks and assess available alternatives.
In 2024, we conducted an assessment of the exposure of the
main sites in our own operations to physical climate risks, chronic
and acute (such as heatwaves, floods, droughts and precipitation).
The analysis utilized internal data, as well as climate projection data
and models provided by a third party. The analysis covered three
different scenarios: rapid transition (RCP 2.6); medium transition
(RCP 4.5); and business as usual (RCP 8.5), and three time horizons:
short term (0–3 years); medium term (until 2030); and long term
(2030–2050).
According to the results, the most significant potential exposure,
for the sites included in the assessment, is to precipitation, flooding
and hail. The sites are to a lesser extent exposed to wildfire and
cold. However, these exposures do not currently present material
risks for the Group, as proper mitigation actions are taken, such as
risk prevention measures or group insurances.
Moving forward we will include the perspective of sites’ vulnera-
bility to ensure that we capture our climate risk exposure as accu-
rately as possible. We also have the ambition to include a number
of key suppliers’ facilities in the analysis. In the meantime, physical
risks related to the supply chain and logistics are regularly reviewed
and mitigated.
Transition risks and opportunities
A transition towards a low-carbon economy is associated with
policy and regulatory risks, technological risks, market risks, and
reputational risks. Among the risks are increased energy prices and
taxes, and regulations related to greenhouse gas emissions. As a
provider of products and technologies that improve performance
and energy efficiency for customers in a variety of segments, Atlas
Copco Group is well positioned to manage such risks. This market
shift may also give rise to new businesses and business models,
thus representing an opportunity for the Group.
In 2023, we conducted a scenario analysis based on the recom-
mendations of the Task Force on Climate-related Financial Disclo-
sures (TCFD), where climate-related transition risks and opportuni-
ties with an actual and/or potential impact on the Group were iden-
tified and analyzed. Two scenarios were used; rapid transition and
business as usual, and three time horizons covered: short term
(0–3 years), medium term (until 2030), and long term (2030–2050).
Group functions and internal subject matter experts were con-
sulted in the process.
A variety of risks and opportunities were identified throughout
our value chain. We intend to further develop the identification,
assessment and quantification of transition risks and opportunities
in close collaboration with the divisions as part of an even deeper
integration of ESG risks in our ERM framework.
Transition plan for climate change mitigation
We believe that we are well positioned, through our strategy and
business model, for a transition to a low-carbon society by manag-
ing the greenhouse gas emissions throughout our value chain in
line with our Group targets, as presented on page 45. As our tar-
gets are science-based, they are in line with the Paris Agreement
and the EU’s climate goals. The Board of Directors has approved
the targets against which our climate-related work has been mea-
sured since 2022.
We are actively working to further develop our climate transition
plan, including roadmaps and targets beyond 2030. Our target is
for the transition plan to be fully developed by the end of 2026. See
pages 45–46 for further details on the Group’s key climate change
mitigation actions and our main decarbonization levers.
Atlas Copco Group 2024 44
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Climate-related policy
Atlas Copco Group’s Code of Conduct is the central guiding policy
underscoring our commitment to reduce the environmental
impact from our own operations and along the value chain. It is
complemented by our SHEQ policy, which is the overall policy for
the environmental area. It addresses climate change mitigation
and our commitment to reduce emissions in line with the goals
of the Paris Agreement, throughout our own operations, and our
upstream and downstream value chain. Renewable and fossil-free
energy deployment is an important lever to reach our targets
related to our own operations, as well as in our upstream and
downstream value chain. Our policy addresses climate change-
related physical risks in our operations to limit potential negative
impact. The policy also addresses climate- related opportunities to
our business, for example by stating that we develop technologies,
products and services that increase energy efficiency and that
enable the transformation to a low-carbon society. Further infor-
mation on the scope and implementation of the SHEQ policy is
described on page 35.
Climate-related targets
We have committed to reducing the greenhouse gas emissions
throughout our value chain in line with the goals of the Paris Agree-
ment. 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 emis-
sions from our value chain (scope 3) in line with keeping the tem-
perature rise well below 2 degrees, including those emissions that
occur when our products are in use. Our targets up to year 2030
have been validated by the Science Based Targets initiative and
were implemented in 2022.
Actions and resources
Atlas Copco Group is committed to continuously improving our
environmental performance and we are addressing emissions in
our own operations and throughout our value chain, through the
levers and actions described below.
The Group’s operational emissions, scope 1 and 2
To reduce the emissions from our own operations, we focus on
energy-saving measures and increasing the use of renewable
energy. The efforts include using biofuels in product testing, transi-
tioning to renewable electricity in our facilities and installing solar
panels. Applying the same measures in more locations enables us
to further reduce emissions. Addressing emissions from company
vehicles enables further reductions and will be in focus going for-
ward.
In 2024, the CO2 emissions from our own operations were 40%
lower than in the baseline year, 2019. An increased share of renew-
able electricity, together with a lower carbon intensity in some mar-
kets, contributed to this reduction. In 2024, the share of renewable
energy used in the Group for own facilities and company vehicles
was 45%. The lack of renewable energy in some markets poses a
challenge and requires us to actively find alternative solutions.
Emissions in our value chain, scope 3
More than 95% of the CO2 emissions from our value chain are gen-
erated when the customers use our products. As this is our main
impact, we focus on developing highly energy-efficient products
and solutions to optimize the carbon footprint over their entire life-
cycle. We also continue to electrify the limited share of the Group’s
products that are not yet electrified. Further gains are possible
through the guidance we provide on how to use our products and
through our service and optimization offer.
All projects for new or redesigned products must have targets
for reduced carbon impact. In 2024, 96% of the projects had set
such targets. Working with suppliers on resource efficiency and use
of recycled materials, and with transport partners on logistics plan-
ning and low-carbon transport modes, are other means to reduce
scope 3 emissions.
In 2024, the absolute emissions in scope 3 were 15% higher than
in the baseline year. This is mainly due to increased sales. Our
efforts to drive the product mix in favor of lower emissions and
improvements in carbon intensity on some important customer
markets are not yet balancing the increase in sales. The develop-
ment and availability of low carbon energy in our customers'
markets is critical to achieving further reductions.
Roadmap to reduce scope 3 emissions
in line with the Group target
Scope 3 Emissions 2019–2030, ktCO2
0
50 000
100 000
150 000
200 000
250 000
300 000
Year
2030
OtherGrid
decarbonization
Product
efficiency
and mix
Year
2019
Growth
Environmental information, continued
Key performance indicators Target 2024 2023 2022 Comment
Reduction in CO2e1 emissions (tonnes) from
scopes 1 and 2, compared to the baseline 2019 –46% by 2030 2 –40% –37% –32%
Data subject to annual restatement.
See page 53 for more information.
Reduction in CO2e1
emissions (tonnes) from
scope 3, compared to the baseline 2019 –28% by 2030 3 15% 27% 19%
Projects for new or redesigned products with
goals for reduced carbon impact 100% 96% 95% 97%
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 2024 45
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Many of our technologies and solutions are used in industries 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.
Environmental trainings
Several Group-common trainings and initiatives to create aware-
ness have been rolled out over the last few years. In 2022, we held a
climate event to increase employees' awareness about our newly
launched science-based targets. This was followed by the launch of
a climate-awareness training for all employees. In 2024, we also
launched a training in circular economy.
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). All production
units with more than 20 employees, and customer centers and
rental companies with more than 70 employees, should be certi-
fied according to ISO 14001. Acquired product companies are
normally certified within a two-year period. See page 36.
Internal carbon pricing
As a Group, we aim to reduce our environmental impacts, lower
our carbon emissions, and reduce potential impact from external
carbon taxes. Including a financial cost of carbon in investment
decisions ensures these aspects are considered.
In 2021, we introduced a guideline on how carbon pricing should
be considered in capital investment decisions (Capex) to ensure
that climate impact is taken into account, for example in connection
with energy-related infrastructure investments. The guideline was
updated in 2024, including the carbon price of 1 500 SEK/tonnes
CO2e to reflect the carbon pricing market development.
Environmental information, continued
Business area’s levers for
reaching scope 3 targets
Considering the different characteristics
of our products, our business areas’
plans and efforts to reduce products’
climate-impact differ. However, they all
strive to increase the sales mix ratio of
the most efficient and favorable prod-
ucts in terms of carbon footprint. The
development and availability of low-
carbon energy in customers’ markets is
also critical to all business areas’ ability
to achieve the Group’s targets.
See the business areas’ main levers for
reaching the targets in the table.
Business area Focus
Compressor
Technique
Focus on continuously improving product efficiency, and optimizing
the compressor rooms by more intelligent central controls.
Vacuum
Technique
Focus on improving product performance, integrating smart
technology to optimize the energy required, and by leveraging our
service teams to deploy product upgrades, which will extend product
lifecycles.
Industrial
Technique
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
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 by offering solutions to supply HVO (hydrogenated
vegetable oil) on the construction sites. Focus on application
knowledge, assuring to sell the right product, with smallest footprint.
Atlas Copco Group 2024 46
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Environmental information, continued
metric tons of CO2e
emissions per year
20 000
Savings of around
Many industries rely on “class zero“ oil-free air. Class
zero refers to third party quality certified air in terms of
contaminants and purity class. When additional capacity
is required, they can now enjoy a reliable solution without
local exhaust emissions.
In the past, a diesel driven PTS800 oil-free air compres-
sor was the go-to compressor to provide additional oil-
free air as temporary utilities mostly operate outside the
compressor room. Today the electric driven PTE900 VSD+
delivers the same class zero oil-free air flow with just half
the footprint in terms of size also improving transporta-
tion efficiency. It is Atlas Copco’s first electric driven VSD
oil-free air compressor that is ruggedized to operate in
extreme circumstances and ambient temperatures from
–25 up to 50°C. In addition to the variable speed and flow
regulation, its low startup current allows for a plug-and-
play electric connection, without overloading the grid.
Transforming temporary industrial dry oil-free air configuration supply
Extreme ultraviolet (EUV) lithography is a cutting-edge technology used in
semiconductor manufacturing to create extremely small and intricate patterns
on silicon wafers. EUV lithography represents a significant leap from tradition-
al photolithography, boosting manufacturing competitiveness with efficient,
high-performance microchips, reducing manufacturing steps, energy, chemi-
cals usage, and waste generation. However, the technology is energy intensive.
Edwards' EUV solutions, which include booster and dry vacuum pumps, are
configurated to customer requirements. Upgrading to newer generation
energy-efficient pumps increases the pump’s capacity and also optimizes the
configuration.
By deploying booster pump upgrades at a semiconductor manufacturer
in Taiwan, the number of dry pumps in the configuration has been reduced,
thereby enabling energy savings. As a result, across all installed systems, we
estimate that the customer will reduce electricity consumption by more than
20% and save up to nearly 9 000 metric tons CO2e per system per year.
Depending on the specific configuration, similar upgrades can be made
to approximately 100 other EUV systems across Edwards' global customer
installed base in Korea, UK, Ireland, Japan, and US.
Energy saving with EUV pump upgrades
metric tons of CO2e
emissions per year
9 000
Savings of nearly
To deliver 800 CFM oil-free air, the PTE900 VSD+ requires
200kW, versus 40l fuel for the PTS800. This results in a
CO2e emissions saving of 80kg per running hour.
Most applications require dewpoints as low as –40°C to
protect their processes. Typically, a PTS800 is combined
with a cold regeneration desiccant dryer. As this dryer
uses 20% of the air flow to regenerate desiccant, the
MDG450 desiccant dryer was developed to eliminate
regeneration losses. As a result, the MDG dryer is 18%
more efficient compared to its compact desiccant dryer
predecessor.
By replacing 80% of the current rental fleet PTS800
and CD dryer configurations, supported by the Specialty
Rental division in 2023, with a PTE900 VSD and MDG
dryer, we will save around 20 000 metric tons of CO2e
emissions per year.
Atlas Copco Group 2024 47
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
metric tons of CO2e
emissions per year
400
Savings of
approximately
The global assembly industry is continuing its transforma-
tion, becoming more efficient, integrated, and focused
on reducing environmental impact. This year, we selec-
tively introduced a new generation of battery-powered
cordless nutrunners, the XB family, which includes two
products: XTB and XCB. Both products are engineered
with a modular design that prioritizes ease of access to
all components. One of the key features of the XB family
is the absence of permanent bonding methods, which is
crucial for both recycling and repairing processes. With
this new design, we ensure that maintenance and repairs
can be performed with minimal effort, reducing downtime
and extending the product's lifespan.
The XB products support our customers in demand-
ing applications within the automotive, aerospace, and
general manufacturing industries. They provide accurate
torque control, which leads to higher yields on customers'
assembly lines.
A new generation battery-powered tightening tools
metric tons of CO2e emissions
over the system's lifetime
136 000
Savings of about
The stand-alone ‘Energy Recovery unit’ for oil-injected
screw compressors is an optimization product that
captures the heat generated during air compression
and repurposes it. Instead of wasting this heat, the ER
system transfers it to water, providing heated water
for various industrial applications like process heating
and sanitation. This reduces the need for fossil fuels,
such as natural gas, for heating water.
Based on the sales in 2024, these Energy Recovery
systems will avoid an estimated 136 000 tons of CO2
emissions throughout their lifetime. This significant
reduction is based on detailed calculations from
actual running conditions and hours, recorded via IoT
(Internet of Things). The latest developments in our in-
house developed cloud monitoring solution Smartlink
allow us to monitor the performance and efficiency of
our customer installations and respond with tailored
recommendations. It also enables our customers to
remotely follow-up the CO2 emissions and energy/cost
savings of their operational equipment, all via
an intuitive and user-friendly state-of-the-art interface.
The system’s small impact on floorspace and ease
of retrofitting to existing installations, make it a
versatile solution for any compressor room, offering
clear environmental and economic benefits.
This new business line within the Compressor
Technique Service division will act as an energy
consultancy organization, providing expert guidance
and solutions to optimize the energy efficiency of
customers' existing compressed air installations.
Energy recovery with remote monitoring
Environmental information, continued
Additionally, the ergonomic design improves workers'
performance and health. The XB products will also be
compatible with server-based controller software, sig-
nificantly reducing the need for physical controllers. This
simplifies the system architecture and enhances flexibility
and scalability, allowing for more efficient management
and control.
Through the optimization of our battery-powered
products, the Atlas Copco brand continues to enable the
transition to a low-carbon industry by offering customers
the opportunity to use superior electric alternatives in
the field. According to our estimation, over the next two
years, the usage of this new technology could avoid the
release of approximately 400 metric tons of CO2e emis-
sions per year.
Atlas Copco Group 2024 48
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
RESOURCE USE AND CIRCULAR ECONOMY
The majority of the resources in terms of material used in the
Group’s production and assembly processes are purchased com-
ponents. Only some core components are manufactured internally.
Common materials include iron and steel, aluminum, copper and
brass. Waste is generated in our suppliers' production process, in
our own operations and at the products’ end-of-life. Some entities
generate and manage hazardous waste and follow hazardous
waste management procedures. The maturity of waste manage-
ment varies across the countries we source from, where we oper-
ate and in our main customer markets. This affects the degree to
which waste is recycled and reused and thus the extent of our
impact. We strive to mitigate the impact of materials used in our
products by applying circularity principles in product design,
including efforts aimed at prolonging the life of the equipment.
This also contributes to reducing the waste generated in our own
operations and at the end-of-life of our products. Resource effi-
ciency and circularity practices in the product design, production
and use are increasing in importance for customers and other
stakeholders. This development is also reflected in upcoming regu-
latory frameworks. Adopting a circular approach thus creates a
business opportunity and a potential competitive advantage.
Policies related to resource use and circular economy
Atlas Copco Group’s Code of Conduct is the central guiding policy
underscoring our commitment to reduce the environmental
impact from our own operations and along the value chain. It is
complemented by our SHEQ policy, which states that we apply
circularity principles throughout the product lifecycle and focus on
a responsible use of resources. This includes further exploration of
opportunities to transition away from the use of virgin resources,
where possible. We are also committed to monitor and avoid any
environmental harm caused by our operations, including the gen-
eration of waste. Further information on the scope and implemen-
tation of the SHEQ policy is described on page 35.
Actions and resources
Circular principles in product development
Atlas Copco Group takes a life cycle approach to innovation. Products
are designed with their full lifecycle in mind – from sourcing and
production, to energy consumption and disposal.
In 2024, in line with our target, we launched a Group-common
methodology for assessing the circularity of all new or redesigned
products. The methodology provides a common framework for our
future circularity work, as it allows for the assessment of circularity
metrics and application of circularity principles across the whole
Group.
During the year, we adopted a new target that applies from
2025. According to this, circularity principles should be applied to
all projects for new or redesigned products, in accordance with the
Group’s internal guidelines. To prepare for and support the new
target, in 2024, we developed Group-common guidelines for apply-
ing circularity principles, as a complement to already existing busi-
ness area-specific ecodesign guidelines.
Durability, repairability and recyclability
Extending the lifespan of products is a key concept of circularity.
Our Group-common circularity principles are used to support the
development of products that are durable, repairable, and easy to
disassemble for recycling.
Service is a key part of our business which inherently supports
extending the lifetime of the Group’s products by providing service,
preventive maintenance programs and refurbishment.
Many of our products are also designed so that 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 new equipment in terms of performance
and energy efficiency. Some of the Group’s units also take back
contaminated products from customers, which otherwise would be
disposed of as hazardous waste, and return them to full operation.
Circularity training
In 2024, a new training focusing on circular economy was launched
and made available to all employees, Group management and the
Board of directors. We also launched a training supporting the
implementation and use of our new group-common circularity
principles.
Environmental information, continued
Key performance indicators Target 2024 2023 2022 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 7.4 7.5 8.4
Reused, recycled or recovered waste from internal
operations 100% by 2030 91% 91% 92%
A Group common methodology for assessing the
circularity of new or redesigned products In place by 2024 In place – – Implementation begun 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 Cost of sales in relation to sustainability information, refers to cost of sales at standard cost in MSEK.
Towards more sustainable
packaging
In our Power Tools Distribution center in Belgium, a shift is under-
way towards packaging material with lower environmental impact.
The ambition is to optimize packaging to reduce the amount of
material used, and to move away from plastic, by replacing plastic
filling bags with recycled paper. If 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 outbound
shipments. Small wooden pallets are also replaced by carton pal-
lets, thereby reducing transport weight and facilitating customers’
recycling.
Atlas Copco Group 2024 49
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Environmental impact in the supply chain
We recognize the importance of managing environmental risks
throughout our 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.
See page 73 for further information.
Packaging
The majority of our products are shipped to customers in safe con-
tainers and the need for packaging is therefore limited. Most often,
wooden pallets are used. For smaller products, cardboard boxes
and plastic packaging are also used for safe transport.
Our ambition is to reduce our environmental impact by avoiding
or reducing the amount of packaging used. We also collaborate
with suppliers that provide packaging with lower impact, such
as recycled carboard, where possible. Some divisions also use
reusable packaging for transportation of components between
suppliers and our sites.
Targets and metrics
During the year, we launched a Group-common methodology for
assessing the circularity of new or redesigned products, and thus
reached this target, see above. Regarding waste management, our
target is that by 2030, we shall reuse, recycle or recover 100% of
the waste generated in our own operations. Both these targets
have been adopted with consideration to current and future legis-
lation. We also have a target stating that the share of significant
direct suppliers that have an approved environmental manage-
ment system should increase continuously. One reason for the lack
of progress related to this target is that new suppliers, who have
not yet achieved certification, have been added as a result of recent
acquisitions.
At present, we have no Group-common targets regarding circular
material use rate, minimization of virgin raw material, sustainable
sourcing, or use of renewable resources. However, these aspects
are on our agenda as they are also means to reduce our emissions
from materials and reaching our target for scope 3.
Going forward, we continue to explore ways to optimize resource
efficiency and waste management. This includes further develop-
ment of relevant performance indicators, such as share of recycled
and recyclable content in our products.
Weight and share of recycled content
We have initiated broader gathering of materials data, including
information about the share of recycled and biological content.
Increasing the share of recycled materials in our products is a
way to contribute to increased circularity. Some metals already
contain a significant share of recycled content while for other
materials, recycled alternatives are limited.
Waste management
Reducing waste is important to decrease the total environmental
impact from our production and increase resource efficiency. Most
of our waste constitutes of scrap metal, most of which is reused or
recycled. Other materials present in the waste are for example
plastics and cardboard from incoming packaging.
Electrically powered Group products sold into the EU fall under
the EU Waste Electrical and Electronic Equipment (WEEE) Directive.
This includes compressors, vacuum pumps, handheld electric tools
and monitoring control instruments. The Group is responsible for,
and arranges with customers, the correct disposal of products that
fall under the directive.
Environmental information, continued
Waste from own operations (tonnes) 2024 2023 2022
Total waste 60 796 57 598 54 855
Waste diverted from disposal 55 576 52 560 50 378
Preparation for reuse 2 317 1 699 1 674
Recycling 45 216 41 117 39 580
Other recovery operations 8 043 9 744 9 124
Specification:
Hazardous waste diverted from
disposal 12 445 – –
Non-hazardous waste diverted
from disposal 43 131 – –
Waste directed to disposal 5 220 5 038 4 477
Incineration 351 – –
Landfill 4 465 – –
Other disposal operations 404 – –
Specification:
Hazardous waste directed to
disposal 1 530 – –
Non-hazardous waste directed
to disposal 3 690 – –
Waste from own operations specifications 2024 2023 2022
Non-recycled/non-reused waste
(tonnes) 13 263 14 782 13 601
Non-recycled/non-reused waste (%) 22% 26% 25%
Reused, recycled, recovered % 91% 91% 92%
Total hazardous waste (tonnes) 13 975 12 251 11 147
Main changes in presentation compared to annual report of previous year:
– More detailed categorization of waste disposal methods and hazardous waste.
– Some details not available prior to 2024.
Atlas Copco Group 2024 50
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
ADDITIONAL ENVIRONMENTAL INFORMATION
In addition to the Group’s environmental targets we measure and
report on several other environmental metrics, many of which are
enablers to reach our Group targets. We therefore set internal tar-
gets related to some of these metrics, including targets for water,
energy and renewable energy, to make sure entities and divisions
contribute to the overall Group targets. The environmental impact
varies from site to site, and each site is responsible for identifying
its most significant environmental impact and to mitigate and set
targets to reduce these impacts.
These processes and targets are an important component of
local environmental management systems as part of business area
ISO 14001 certifications and of our resource efficiency measures
for operational excellence.
Energy consumption and mix
Energy consumption, MWh 2024 2023 2022
Own facilities
533 859 531 414 517 906
Direct energy 156 474 153 441 159 236
Indirect energy 377 385 377 973 358 670
Company vehicles 248 877 225 452 180 458
Direct energy 246 986 222 097 179 928
Indirect energy 1 891 3 355 530
Total energy 782 736 756 866 698 364
Direct energy 403 460 375 538 339 164
Indirect energy 379 276 381 328 359 200
Energy /revenue
Total energy / revenue (MSEK) 4.4 4.4 4.9
The Group does not report cooling or steam separately. Direct energy, i.e. energy genera-
ted by the company for its own production or operation (on site or by company vehicles)
includes diesel, oil, biofuel, gasoline, solar, geothermal, propane and natural gas. Indirect
energy, i.e. energy purchased externally by the company, includes electricity (97%) and
district heating (3%) used at the sites or by company vehicles. Main changes in presenta-
tion compared to the annual report of previous year: Energy is presented in MWh instead
of GWh. Energy from company vehicles is included. Energy is reported in relation to
revenue instead of cost of goods sold.
Renewable energy sources, % 2024 2023 2022
Own facilities 64% 61% 56%
Company vehicles 5% 4% 4%
Total 45% 44% 42%
The share of renewable energy does not include “renewable of mix” for indirect energy,
as reported previous years, only fully renewable indirect energy supported by renewable
energy certificates or contractual agreement.
Substances of concern
Atlas Copco Group’s own operations are mainly focused on assem-
bly, rather than manufacturing, and our actual and potential pollu-
tion-related impact is therefore limited. However, the Group’s oper-
ations may have a negative impact on the environment due to the
potential use of substances of concern.
The Group maintains lists of substances which are either prohib-
ited or that must be declared due to their potential harmful effects
on humans 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.
Via a dedicated communication platform, we inform the Group’s
suppliers 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.
We closely monitor regulatory initiatives and legislation on chem-
icals and hazardous substances. These include 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 Group’s lists over prohibited and declarable sub-
stances are under continuous revision and are published on the
Group’s website www.atlascopcogroup.com.
Biodiversity
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 our negative impact.
Following our initial biodiversity assessment in 2023, we have in
2024 conducted a biodiversity impact assessment focusing primar-
ily on impact related to our production sites and significant suppli-
ers. We will analyze and process the results to identify relevant
measures to address our impacts and risks going forward.
During 2024, we reviewed and updated our biodiversity state-
ment in our SHEQ policy. We also continued the work in our inter-
nal biodiversity team with representatives from Group and all four
business areas. The purpose of the team is to build internal compe-
tence, monitor the development within the area and guide the
organization in biodiversity-related issues.
As climate change is a key driver of biodiversity loss, our impact
on nature is currently mainly addressed through our climate tar-
gets and our efforts to reduce greenhouse gas emissions across
the value chain. Pollution is another key driver that we address
through our measures to identify substances of concern. We also
take action to ensure that substances on our Prohibited list are
not used in our own operations or by suppliers. Our continuous
measures to minimize water consumption contribute to further
reducing our impact on nature.
Water management
Atlas Copco Group’s overall water consumption is relatively low due
to our focus on assembly rather than water-intensive production
processes. Nevertheless, we seek to decrease our use of water, and
increase its reuse and circulation. Our target to continuously
increase the share of significant suppliers with an environmental
management system puts focus on resource efficiency and respon-
sible environmental management in our upstream value chain.
Innovative product design and improved processes also contribute
to reducing our customers’ water consumption.
Environmental information, continued
Atlas Copco Group 2024 51
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Environmental information, continued
In 2021, we conducted a value-chain impact
assessment, which formed the baseline for our
Science-Based targets. A common Group
methodology was used with 2019 as the base-
line year.
The direct climate impact from energy used
by our units (scope 1 and 2) was initially calcu-
lated by using actual data from the reporting
units that were then within the scope and esti-
mating the impact from the remaining units.
Since 2022, all entities report their actual car-
bon dioxide equivalent emissions from energy
used in companies, and vehicles’ use. The per-
formance on scope 1 and 2 is monitored and
reported at unit level and consolidated 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 Prod-
uct Carbon Footprint tool (PCF). This third-party
certified tool is used to assess the carbon
impact during the product’s entire lifecycle,
from choice of materials to manufacturing,
energy used during the use-phase, estimated
service required, and recycling and disposal.
Business area Calculation method
Compressor Technique Scope 3 emissions are calculated by having application specialists
apply our PCF tool methodology. We use country-specific carbon
intensity factors for the indirect emissions from electricity throughout
the use-phase of our products and apply material-specific emission
and circularity factors to the product materials, for a large set of
reference products. Real operational data, ingested via our
connected installed base is used to make the best possible estimation
of the lifetime use variation of the products.
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 purchased goods and services, the spend-based method has
been used considering total spend on all goods and services,
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 from the material and use phase of our products
have been calculated using the PCF tool methodology, applied 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 methodology.
Value chain impact assessment
– calculation methods
Business areas complete the calculations and
monitor performance of product-related and
non- product related emissions, and the results
are consolidated to Group-level.
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, the data is associated with uncer-
tainties. We will therefore work gradually to
develop and improve our processes and tools,
to increase data accuracy and minimize uncer-
tainties. As part of improving data accuracy and
correctness, during 2023 we introduced a GHG
restatement process, see page 53.
Energy consumed in the use phase is calcu-
lated using the current CO2 intensity of the rele-
vant market over the products’ lifetime. No
forecast of increased availability and use of
renewable energy sources is taken into consid-
eration. This, most likely, results in emissions
being overestimated.
Atlas Copco Group 2024 52
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
• Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
GHG emissions (restated values)
(CO2e) ‘000 tonnes 2024 2023 2022
Retrospective
base year 2019
% change
2024 vs. 2023
% change
vs. base year
Milestones and
target years 2030
Scope 1 GHG emissions
Gross Scope 1 91 89 92 97 +2 –6
Scope 2 GHG emissions
Gross location-based Scope 2 145 146 144 – 0 –
Gross market-based Scope 2 23 30 36 92 –23 –75
Scope 1 + 2 GHG emissions
Scope 1 + 2 (market based) 114 119 128 189 –4 –40 –46%
Scope 3 GHG emissions
Total gross indirect Scope 3 224 213 247 894 232 229 194 864 –10 +15 –28%
Purchased goods and services 3 283 3 757 4 111 3 060 –13 +7
Use of sold products 218 027 241 294 225 220 189 959 –10 +15
Leased assets downstream 2 443 2 357 2 386 1 343 +4 +82
Other categories 460 486 512 502 –5 –8
Total GHG emissions
Total GHG emissions (location based) 224 449 24 8 129 232 465 – –10 –
Total GHG emissions (market based) 224 327 248 013 232 357 195 053 –10 +15
GHG emissions* / revenue (MSEK)
(CO2e) tonnes 2024 2023 2022
Retrospective
base year 2019
% change
2024 vs. 2023
% change
vs. base year
Milestones and
target years 2030
Scope 1+2 (market based) GHG emissions / revenue 0.65 0.65 0.83 1.63 0 –60
Scope 3 GHG emissions / revenue 1 268 1 430 1 612 1 844 –11 –31
Total GHG emissions (market based) / revenue 1 269 1 431 1 613 1 845 –11 –31
Total GHG emissions (location based) / revenue 1 270 1 431 1 613 – –11 –
* Historic data has not been restated for acquisitions.
Environmental information, continued
GHG emissions restatement specification
(CO2e) ‘000 tonnes 2023 2022 Base Year 2019
Scope 1+2 GHG emissions
Initial reported Scope 1+2 113 108 162
Adjustment to Scope 1+2 6 20 27
Restated Scope 1+2 119 128 189
Scope 3 GHG emissions
Initial reported Scope 3 250 528 219 822 170 634
Adjustment to Scope 3 –2 634 12 407 24 230
Restated Scope 3 247 894 232 229 194 864
Restatements
Atlas Copco Group has developed guidelines for restatements that applies to our
GHG reporting related to the company’s science-based targets and the correspond-
ing baseline. Base year emissions shall be retroactively recalculated to reflect chang-
es 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 standards. Factors that trigger restatements: 1) structural chang-
es in the reporting 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 calcula-
tion methodology or improvements in the accuracy of emission factors 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 collec-
tively significant. Scope 1, 2 and 3 emissions data were recalculated in conjunction
with our value chain impact assessment in 2021.
Comments to GHG emissions data
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 provided
by the transport company. Scope 1 includes direct energy in own operations
and fuel used in company vehicles. Scope 2 includes indirect energy from own
operations and electricity from company vehicles. Scope 3 includes GHG emis-
sions 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 4 388 tonnes in 2024. CO2e stands for car-
bon dioxide equivalents. Calculations according to GRI Standard Guidelines,
www.globalreporting.org.
Atlas Copco Group 2024 53
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
• EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
EU Taxonomy regulation disclosures
The European Union’s Taxonomy regulation (EU Taxonomy) aims to provide guidance and over time act as 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.
through energy efficient variable speed drive compressors, but
also fixed speed compressors are manufactured with the aim of
offering energy efficiencies. Additional eligible products and solu-
tions 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
specifically developed to enable the manufacture of low carbon
technology and products across several market sectors. Technol-
ogy such as abatement eliminates greenhouse gas emissions
arising from complex manufacturing processes and is deemed
eligible when demonstrating market leading energy efficiency.
Also included as eligible is core vacuum pump technology that
can accelerate energy efficiency through its high level of vacuum
performance.
Within the Industrial Technique business area, a majority of
products and solutions are developed with the 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 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 revenue denominator used for the EU taxonomy KPI calcula-
only business area that qualifies for reporting under both acts is
Industrial Technique as a manufacturer of power-driven hand tools
relating to the circular economy objective. There is nothing signifi-
cant to report. Therefore, we report solely under the Climate
Delegated Act for all three KPIs.
Revenue KPI
Based on the taxonomy’s Climate Delegated Act, Atlas Copco
Group is eligible for climate change mitigation (CCM) under activity
CCM 3.6 with the eligibility description “Manufacture of technologies
aimed at substantial 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 2024 reporting the following have been included:
Within the Compressor Technique business area, the majority
of products and solutions are eligible as they actively strive to lower
customers’ energy consumption. This is predominately done
Atlas Copco Group develops and offers a wide range of technolo-
gies and services for different end markets and applications. We
strive to provide the most energy efficient products for each spe-
cific application to support our customers in minimizing their
energy consumption and reducing their climate impact.
The EU taxonomy consists of six environmental objectives and
several delegated acts. The Climate Delegated Act addresses two of
the objectives (climate change mitigation and climate change adap-
tation) and the Environmental Delegated Act addresses the remain-
ing four objectives (water, transition to a circular economy, pollu-
tion prevention, and biodiversity).
We have assessed our operations against the EU taxonomy list
of available economic activities and concluded that we are eligible.
To also be considered environmentally sustainable, aligned, we
have evaluated our compliance against three sets of criteria: 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, which refer to the social
aspects of doing business, signaling that referencing existing com-
pany policies was not sufficient for compliance. Based on ESMA’s
restrictive compliance interpretation, we decided to continue the
Group’s conservative approach from 2021 and we have since then
reported 0% alignment on all three KPIs.
We have continuously taken steps to strengthen our due dili-
gence processes relating to human rights (see ‘Meeting the Mini-
mum Safeguards’ below). During 2024, the Corporate Sustainability
Due Diligence Directive was agreed upon, scheduled to be imple-
mented as of 2027. The EU has confirmed a clear link between its
requirement and the Minimum Safeguards. For this reason, we
continue our conservative approach and report 0% alignment on
all three KPIs also for 2024. Owing to this, no detailed review of the
other criteria is shared at this stage.
For the financial year 2024, reporting is required on both the
Climate Delegated Act and the Environmental Delegated Act. The
Atlas Copco Group 2024 54
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
• EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
tion are all revenues derived from the sale of equipment and ser-
vices as stated in the consolidated financial statements (revenue
recognition in the material accounting principles).
The revenue numerator includes revenues generated by both
equipment and services including rental income based on EU taxon-
omy section CCM 3.6. Both Compressor Technique and Power Tech-
nique have included revenues related to refurbishment.
Technical screening criteria assessment
The CCM 3.6 section requires that emission savings are calculated
using an EU taxonomy compliant method and that these calcula-
tions are verified by a third party. In 2022, our product carbon foot-
print (PCF) tool was externally certified against ISO 14067:2018. In
2024, we re-certified the PCF tool following performance updates
and it continues to qualify as EU taxonomy compliant.
Result
Revenue eligibility is 64% (65).
CapEx KPI
We utilize the following types of EU taxonomy listed capital expen-
diture for the CapEx numerator:
• “CapEx related to assets or processes that are associated with tax-
onomy-aligned activities”: Used for investments in factories that
enable production of products relating to EU taxonomy section
CCM 3.6 and for our R&D reporting.
• “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 EU taxonomy KPI calculation
consists of additions to tangible and intangible assets (including
right of use assets) during the financial year, considered before
depreciation, amortization, and any re-measurements, including
those resulting from revaluations and impairments, and excluding
fair value changes. The denominator also includes additions to tan-
gible and intangible assets resulting from business combinations.
No significant climate change adaptation investments have been
made during the year. See more information on page 109.
Result
CapEx eligibility is 22% (17). 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 propor-
tion of EU taxonomy relevant expenditure which may impact the
KPI.
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 EU taxonomy section CCM 3.6). The denominator how-
ever 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 34% (29). The increase is mainly due to improve-
ments in methodology relating to how R&D is reported.
Doing no significant harm
EU taxonomy alignment requires substantial contribution to at
least one of the EU taxonomy’s environmental objectives while
doing no significant harm to any of the other objectives. The EU
taxonomy identifies 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 EU 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. Despite critique from
reporting companies that the taxonomy requirements exceed
existing regulatory demands on declarable substances, the EU is
yet to address this complexity. Until then, we find it difficult to per-
form the required assessment.
Improvements may be implemented to certain existing policies
and procedures and steps to adapt to the EU taxonomy reporting
demands have been taken. For example, we conducted a biodiver-
sity impact assessment in 2024, and we have started using a third
party solution to facilitate the assessment of physical climate risks.
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 Dec-
laration of the International Labor Organization on Fundamental
Principles and Rights at work and the International Bill of Human
Rights.
Our company policies align with the criteria as we endorse all ref-
erenced frameworks. Building on efforts during 2023 to strengthen
processes, we have this year reviewed and updated our Business
Partner Criteria document which all significant business partners
need to sign to confirm compliance with our Code of Conduct. Fur-
thermore, we have implemented the system for ESG assessments
that we invested in last year. We have also developed our internal
checklists and guidance for supplier sustainability assessments and
formed a dedicated workstream for responsible sourcing practices.
The workstream has thus far reviewed and further strengthened
our procedures to safeguard the responsible sourcing of minerals
which includes better support to our suppliers in their due dili-
gence efforts. In addition, training in human rights due diligence is
offered in our internal learning platform.
The upcoming EU due diligence directive references the same
international frameworks as the EU taxonomy, and we have there-
fore chosen to see its requirements as guiding also in the EU taxon-
omy reporting in wait for best practice to develop. The EU Commis-
sion’s FAQ from November 2024 supports this approach.
EU Taxonomy regulation disclosures, continued
Atlas Copco Group 2024 55
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
• EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Concluding comments
A similar revenue eligibility is reported in 2024 as previous years.
Focus has been on strengthening processes relating to the
Minimum Safeguards and biodiversity in particular. We have also
agreed on common circularity principles to be used in product
development as of 2025.
In principle our company policies and procedures correspond
with EU taxonomy requirements, however we have chosen to
continue our conservative compliance interpretation of the Mini-
mum Safeguards and therefore report 0% alignment on all three
KPIs. As mentioned, we find it difficult to assess the pollution pre-
vention criteria given that they exceed existing regulatory require-
ments.
We monitor the developments around the EU taxonomy closely.
As reporting practice and guidelines develop, we may reevaluate
our current approach especially following the announced EU
omnibus simplification package which is said to impact the EU
taxonomy.
Clarification in how to perform alignment assessment of so
called enabling activities is also likely to impact our EU taxonomy
reporting as many of our technologies and solutions contribute
to a more low-carbon society and are essential in several manu-
facturing processes included in the EU taxonomy.
EU Taxonomy regulation disclosures, continued
In accordance with EU taxonomy requirements, we report as follows
referring to nuclear and fossil gas related economic activities and
their potential impact on the denominator of our KPIs.
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
Atlas Copco Group 2024 56
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
• EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
EU Taxonomy regulation disclosures, continued
Revenue KPI
Financial year N 2024 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)
Manufacture of other low-carbon technologies CCM 3.6 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
Revenue from environmentally sustainable activities (Taxonomy-aligned) (A.1) 0.0 0% 0% 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 3.6 113 748.1 64.35% N N/EL N/EL N/EL N/EL N/EL 65.34%
Revenue from Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) ¹ 113 748.1 64.35% 64.35% 0% 0% 0% 0% 0% 65.34%
A. Revenue from Taxonomy-eligible activities (A.1 + A.2) ¹ 113 74 8.1 64.35% 64.35% 0% 0% 0% 0% 0% 65.34%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Revenue from Taxonomy-non-eligible activities 63 022.8 35.65%
TOTAL ² 176 7 70 .9 100%
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
¹ Substantial contribution criteria percentage reported in accordance with guidance from FAR, the institute for the accountancy profession in Sweden
² See page 114
Atlas Copco Group 2024 57
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
• EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
CapEx KPI
Financial year N 2024 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)
Manufacture of other low-carbon technologies CCM 3.6 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
Transport of motorbikes, passenger cars and light commercial vehicles CCM 6.5 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
Installation of energy efficiency equipment CCM 7.3 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
Installation of charging stations for electric vehicles in buildings
(and parking spaces attached to buildings) CCM 7.4 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
Installation of instruments and devices for measuring, regulation and
controlling energy performance of buildings CCM 7.5 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
Installation of renewable energy technologies CCM 7.6 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0.0 0% 0% 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 2 859.1 17.38% N N/EL N/EL N/EL N/EL N/EL 12.21%
Transport of motorbikes, passenger cars and light commercial vehicles CCM 6.5 611.1 3.72% N N/EL N/EL N/EL N/EL N/EL 4.43%
Installation of energy efficiency equipment CCM 7.3 32.3 0.20% 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 10.1 0.06% N N/EL N/EL N/EL N/EL N/EL 0.01%
Installation of instruments and devices for measuring, regulation and
controlling energy performance of buildings CCM 7.5 0.4 0.00% N N/EL N/EL N/EL N/EL N/EL 0.01%
Installation of renewable energy technologies CCM 7.6 44.0 0.27% N N/EL N/EL N/EL N/EL N/EL 0.06%
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) ¹ 3 557.0 21.63% 21.63% 0% 0% 0% 0% 0% 16.82%
A. CapEx of Taxonomy-eligible activities (A.1 + A.2) ¹ 3 557.0 21.63% 21.63% 0% 0% 0% 0% 0% 16.82%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 12 890.6 78.37%
TOTAL ² 16 447.6 100%
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
EU Taxonomy regulation disclosures, continued
N/EL = Not eligible, taxonomy non-eligible activity for the relevant
environmental objective
¹ Substantial contribution criteria percentage reported in accordance with guidance
from FAR, the institute for the accountancy profession in Sweden
² See page 114, the Total CapEx difference is explained in ’CapEx KPI’ above
Atlas Copco Group 2024 58
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
• EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
OpEx KPI
Financial year N 2024 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)
Manufacture of other low-carbon technologies CCM 3.6 0.0 0% N N/EL N/EL N/EL N/EL N/EL 0%
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 0.0 0% 0% 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 2 745.7 33.94% N N/EL N/EL N/EL N/EL N/EL 28.96%
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) ¹ 2 745.7 33.94% 33.94% 0% 0% 0% 0% 0% 28.96%
A. OpEx of Taxonomy-eligible activities (A.1 + A.2) ¹ 2 745.7 33.94% 33.94% 0% 0% 0% 0% 0% 28.96%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 5 343.6 66.06%
TOTAL 8 089.3 100%
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
¹ Substantial contribution criteria percentage reported in accordance with guidance from FAR, the institute for the accountancy profession in Sweden
EU Taxonomy regulation disclosures, continued
Atlas Copco Group 2024 59
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social information
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 our stakeholders.
Key performance indicators Target 2024 2023 2022 Comment
Employees feel a sense of belonging in the company 1
Above benchmark (73) and
a continuous increase – 77 –
Measured through
the employee survey
every two years.
Employees agree there is opportunity to learn and
grow in the company 1
Above benchmark (72) and
a continuous increase – 75 –
Employees agree there is a work culture of respect,
fairness and openness 1
Above benchmark (76) and
a continuous increase – 76 –
Share of female employees, by year end 30% by 2030 22.4% 22.0% 21.6%
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.
OUR OWN WORKFORCE
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,
retaining and developing diverse people with the right mindset and
skills, and enabling them to grow with freedom and accountability.
In Atlas Copco Group, we firmly believe that diversity and inclusion
has a positive impact on our workforce and that it strengthens
employee engagement, while contributing to innovation and better
decision-making. We address occupational health and safety risks
and promote a safe and sound working environment for our
employees throughout our operations.
Policies related to our own workforce
To support our work, we have a number of Group-wide policies
and guidelines, as described throughout this chapter. Atlas Copco
Group’s Code of Conduct is the central guiding policy underscoring
our commitment to upholding human rights and labor rights,
including fair wages and working conditions, freedom of associa-
tion, and zero-tolerance for modern slavery or child labor. The
Code of Conduct also includes our commitment to maintaining a
safe and inclusive working environment with equal opportunities,
where all our employees have the opportunity to thrive and grow.
See page 35 for further information on the scope and implemen-
tation of the Code of Conduct and SHEQ policy.
Employee engagement
Building and maintaining relationships with the Group’s employ-
ees, based on integrity, fairness and respect, is a vital part of our
culture. It is central to understanding our people and what drives
them, and helps fostering trust and motivation.
We value our employees’ opinions and are dedicated to provid-
ing an inclusive environment where everyone feels a sense of pur-
pose and belonging, are motivated to contribute and is given the
opportunity to develop and reach their full potential.
Regular engagement surveys
Every two years, we measure the engagement, motivation and
well-being of our employees through Insight, the Group’s global
engagement survey. The survey brings important insights in the
following areas: employee engagement, Group culture, safety and
leadership, and diversity and inclusion. See the targets and results
in the table below, and in the table on page 63.
In the most recent survey, two areas emerged as particularly
prioritized from a Group perspective. One is about maintaining the
customer perspective, and keeping pace with customer needs and
expectations. The second is about ensuring a strong culture, by
further increasing our focus on treating all employees fairly and
respectfully. The results are followed up in workshops led by our
managers, where concrete actions are shaped to further
strengthen employee engagement and our culture.
To gather additional feedback at other significant stages during
an individual’s employment with the Group, the Insight survey is
complemented by global onboarding, internal mobility, and off-
boarding surveys.
Insight: Improved employee
engagement
The overall results of the 2023 engagement survey were above the
global benchmark. The results also show that our employees were
more engaged than in 2021, as 16 out of the 29 scores showed
improvement. This included key focus areas of leadership, collabora-
tion, and safety/well-being. The survey in 2023 saw the introduction
of a Diversity & Inclusion index, comprised of six key indicators. For
example, we started to measure our manager’s commitment to diver-
sity and inclusion and if the Group has a work climate where diverse
perspectives are valued.
The high level of engagement was reflected by the 40 000 com-
ments, with 30% of employees leaving at least one comment. The
response rate was 90%, which is above the global benchmark.
Atlas Copco Group 2024 60
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social information, continued
Training and skills development
Our approach and policies
Atlas Copco Group’s success depends on our ability to attract and
develop people with a commitment to lifelong learning and with a
growth mindset. We have a strong culture of actively promoting
continuous learning and encourage our employees to take charge
of their own professional development.
Encouraging internal and international mobility is a central part
of this approach. The Global Mobility Policies state the terms and
conditions that apply to cross-border employee transfers. Our
Internal job market policy describes the principles and guidelines
that apply to be able to offer a transparent and fair market for
recruitment within the Group.
Actions and resources
To support our employees, we provide opportunities and tools for
continuous development. The importance of learning from col-
leagues is also emphasized, and we facilitate internal mobility
through the Group’s internal job market, available to all employees.
Developing future-proof leaders
Leadership development is fundamental to the Group’s success.
We define leadership as the ability to create lasting results through
people and we strive to develop leaders with the ability to coach
and develop teams and individuals to reach their full potential.
Our Group Leadership Portfolio offers personalized learning
through both virtual and face to face modules. In 2024, new mod-
ules were launched focusing on topics such as global leadership,
psychological safety, and AI (artificial intelligence).
Ongoing feedback and coaching
Our leaders are accountable for developing their teams through
ongoing feedback and coaching. The Group’s process for perfor-
mance and development dialogues is designed to increase the
quality and frequency of feedback. The process includes setting
performance and development goals at the start of each year and a
follow-up evaluation from managers at year end. To provide timely
and constructive feedback, managers are also encouraged to have
continuous check-ins with employees throughout the year.
Learning management system
Our group-wide learning management system, Learning Link, pro-
vides access to an extensive library of interactive learning content,
that enables upskilling and reskilling. The content is personalized
and packaged to address specific skills, functions or roles. In addi-
tion to the Group’s own courses, users can also access more than
20 000 LinkedIn courses in 24 languages, covering everything from
automation and artificial intelligence to business or creative topics.
Training targets and metrics
We have adopted a group-wide target related to training, with the
ambition that the share of employees who agree that there is
opportunity to learn and grow within the Group should be above
the international benchmark and should increase continuously.
This is measured every two years, see table on page 60.
Employees at year end that participated in a yearly performance and
development discussion, per gender (headcount) %
2024
Female 85
Male 84
Other 83
Not disclosed 50
Total 84
Employees at year end that participated
in a yearly performance and
development discussion, (FTE) %
2024 2023 2022
Total 84% 81% 79%
Average training hours per employee, per gender (headcount) %
2024
Female 42.2
Male 45.2
Other 48.8
Not disclosed 4.6
Total 44.5
For 2024, headcount per year end has been used for calculation.
Average training hours per
employee, (FTE) %
2024 2023 2022
Average training hours per employee 45.9 43.2 42.0
We also track the number of training hours, with the ambition of
reaching 40 training hours per employee per year. Here, we focus
on balancing mandatory training with on-demand training
requested by the employees themselves. The number of training
hours has increased steadily over the last three years and is well
above the ambition of 40 hours.
Building an early
talent pipeline
Atlas Copco Group seeks to build a diverse and innovative early
talent pipeline to ensure that we have access to the right skills in the
right place. Our Vacuum Technique business area has a number of
early career programs, including a 2-year Global Graduate program,
Apprenticeship, Year in Industry and Work Experience. The programs
look to accelerate talent development, building future focused skills
and creating career pathways with a strong focus on global mobility.
Never Stop Learning Festival
– a part of our learning culture
The Group’s annual event, the Never Stop Learning Festival, is a whole
week dedicated to continuous learning to emphasize the importance of
taking ownership of our own development and exploring our full poten-
tial. First launched in 2021, as a Group-wide learning week, it has since
developed into an extended festival, with lunch and learn sessions,
online activities, webinars, and panel discussions. Although we always
stress the importance of integrating learning into our daily work, the
Never Stop Learning Festival provides an opportunity for our employees
to go outside their daily routines and focus on acquiring new skills.
Atlas Copco Group 2024 61
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Actions and resources
The Group’s Diversity and Inclusion council is chaired by the
Group’s President and CEO, and includes representatives from all
business areas, as well as from the functions Group communica-
tions, human resources, and accounting and controlling. The coun-
cil 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.
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.
Diversity targets and metrics
Achieving a better gender balance is a key priority when it comes to
improving employee diversity. We address this through the target
of 30% women employees in the Group by 2030. In 2024, progress
was made towards a better gender balance with 22.4% (22.0)
women employees by year end.
We have adopted a group-wide target in the area with the ambi-
tion that the share of employees who feel a sense of belonging in
the company, should be above the international benchmark and
continuously increase. This is measured every two years, see table
on page 60.
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.
Share of women at year end, % 2024 2023 2022
All employees 22.4 22.0 21.6
Managers 21.1 20.6 20.4
Group management 30.0 33.3 33.3
Board of Directors
1 44.4 37.5 25.0
1 Excluding worker representatives.
Social information, continued
Senior management by gender
(headcount), at year end
2024
Number %
Female 88 15
Male 506 85
Other 0 0
Not disclosed 0 0
Total 594 100
The Group has managers on international assignments coming
from 44 countries and working in 47. In 2024, a total of 77% (77)
of all senior managers were locally employed. 43 (42) nationalities
were represented among the most senior managers in the Group.
Employees by age group, FTE,
at year end (%) *
2024 2023 2022
<30 years 21 21 21
30–50 years 60 60 61
>50 19 19 18
* Based on employees in countries allowing age disclosure. Age is not disclosed for
13% of employees.
Equal pay for work of equal value
Atlas Copco Group is committed to providing equal opportunities
for all our employees. This includes ensuring equal pay for work of
equal value. As stated in our Code of Conduct and Total Rewards
philosophy, the Group is committed to reward performance in a
fair way and to provide total rewards that are determined in an
objective manner and based on merit only. In order to ensure
compliance with current and future legislation we are continually
developing and improving our policies and procedures. We are
also performing readiness assessments.
Atlas Copco Group is committed to providing
equal opportunities for all our employees.
Diversity and inclusion
Our approach and policies
With more than 55 000 employees at year end, of around 130
nationalities, we are committed to providing an inclusive work
environ ment where everyone is treated with respect, feels seen
and heard, and is able to realize their full professional potential.
The Group’s Diversity and Inclusion guideline covers all employ-
ees, including additional workforce, and states that we strive for
diversity and inclusion in every aspect of our operations. We should
provide equal opportunities to all applicants and employees, and
no one should be discriminated based on ethnicity, religion, gender
or gender identity, age, nationality, disability, sexual orientation or
political opinion.
Atlas Copco Group 2024 62
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social information, continued
Key performance indicators Target 2024 2023 2022 Comment
A balanced safety pyramid 1 Yes Yes Yes Yes
Employees agree that the company takes a
genuine interest in their well-being 2 Continuous increase – 74 –
Measured through the employee
survey every two years.
1 Balanced meaning that we receive more reports on risk observations than near misses, more near misses than minor injuries,
and more or equal reports of minor injuries relative to recordable injuries.
2 Scores based on scale 0–100 where 0 is “strongly disagree” and 100 is “strongly agree”.
Occupational health and safety
Our approach and policies
Providing a safe and sound working environment is critical to our
employees’ health, well-being and motivation, as well as to the
Group’s productivity, competitiveness and value creation. This com-
mitment is reinforced in our Safety, Health, Environment and Qual-
ity policy (SHEQ), which applies to all our employees, additional
workforce and others affected by our operations. The SHEQ policy
requires robust standards for safety and well-being in the work-
place. This includes risk assessments and safety procedures, train-
ing, appropriate follow-up procedures, and transparent reporting.
The Group Travel Policy is designed to support and guide all
employees to a sustainable and safe way of travel. All employees
are covered by a program provided by International SOS to ensure
proactive and reactive care during all business travel. The Travel
Security Policy includes instructions regarding restrictions and pre-
cautions to be followed based on the country risk forecast informa-
tion provided by an external partner.
Supporting the well-being of employees
A Group-wide framework for well-being has been developed to
help leaders understand employees’ needs and how to support
them. The framework is made up of four connected areas; a sense
of purpose, social connectedness, physical well-being, and mental
well-being. A supplementary guide is available which includes refer-
ence material and examples of initiatives at the individual, team
and/or operational level, such as time management training, or
mental health training and webinars.
Most prevalent safety risks
Our employees face various types and levels of risk in their every-
day work life. The work in our operations is performed in a strictly
controlled environment. Although many procedures are auto-
mated, manual procedures remain, which may imply health and
safety risks. Employees may also be exposed to risks when travel-
ling internally or to visit customers and other business partners,
or while undertaking service and maintenance on equipment at
customers’ sites. Other risks involve psychosocial aspects, related
to for example workloads or work-life balance.
Over the last few years, the major hazards reported for high-
consequence injuries have been slips and trips, 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.
Creating a culture of awareness
We seek to reinforce a culture and behaviors that contribute to the
safety and well-being of our employees and contractors in the
workplace. We engage everyone in improving safety practices and
reducing health and safety risks. An online SHEQ awareness train-
ing is available to all employees. The training is part of our work to
create strong awareness and a culture that supports an incident-
free workplace. We also encourage the immediate reporting of
near-misses, incidents and risk observations. This is critical to rais-
ing the awareness of risks and to developing an effective preventa-
tive work.
Robust safety standards
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 organization in
strengthening local competencies, including the development of
Group-common policies, guidelines and processes for local imple-
mentation, sharing of best practices and lessons learned.
All companies in the Group must have a Safety, Health, Environ-
ment and Quality management system which is documented,
implemented and maintained on an ongoing basis. Customer
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 assess-
ments and review of safety-related processes relevant to the activi-
ties of our own employees and of contractors in our operations.
See the table on page 36 for the percentage of employees covered
by a health and safety management system.
Psychological safety helps
future-proofing our business
Psychological safety is an essential ingredient for healthy organizations
where employees feel encouraged to speak up and share ideas without
fear of being judged. It increases employees’ ability to be productive,
creative and innovative and is therefore central to future-proofing
our business. In 2024, a dedicated program to further increase the
awareness of psychological safety among senior leaders was piloted
and rolled out as part of our Group Leadership Portfolio. The program
received positive feedback and will be scaled further in 2025. Additional
activities were launched to drive awareness at different levels of the
organization, including an introduction video to psychological safety
available for all employees, dedicated playlists, and a toolkit for manag-
ers with practical tips for use in day-to-day operations.
Atlas Copco Group 2024 63
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Safety, health and
well-being day
Each year, since 2015, Atlas Copco Group holds a Safety, Health and
Well-being Day in all of our operations. The objective is to emphasize
safety at work and to reinforce our safety and health culture by giving
everyone the possibility to openly discuss current working conditions
and how we can improve them further for employees and customers
using Atlas Copco Group products. Each entity decides on the scope
and focus of their Safety, Health and Well-being Day to meet the local
concerns in this area.
Health and safety targets and metrics
Key performance indicators on safety and well-being 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 every two years in the global
employee engagement survey, where the target is that the share of
employees who agree that the Group takes a genuine interest in
their well-being should increase continuously. The 2023 employee
survey confirms that this share has increased compared to in 2021.
We also monitor our performance by using a safety pyramid,
where our target is that the pyramid should be balanced, see page
63.
Reporting risk observations and near misses contributes to
raising awareness of conditions and behaviors that may lead to
actual incidents. The insights form a stable starting point for
well-directed preventive work in the area. In 2024, the result was
in line with this target, see the illustration below.
Social information, continued
Safety pyramid 2024 – total workforce, number
Fatality (0)
High-
consequence
injury (5)
Other recordable injury (437)
Minor injury (1 351)
Near miss (6 436)
Risk observations (155 226)
Total
recordable
injuries
Work-related fatality
Injury where recovery to pre-injury
fitnesstakeslongerthansixmonths
Injuryresultinginabsencefromwork,restrictedwork,medicaltreatment,
lossofconsciousnessorsignificantinjurydiagnosedbyaphysician
Minorinjuryrequiringfirstaidtreatmentonly
Eventthatdidnotresultinaninjurybuthadthepotentialtodoso
Observationsofunsafeconditionsthatcouldcauseharm/injury
Work-related health and safety Per million working hours Number
2024 2023 2022 2024 2023 2022
Work-related fatalities
Fatalities (work-related injuries) 0 0 0 0 0 0
Work-related injuries
Total high-consequence injuries, total workforce 0.0 0.0 0.0 5 4 4
High-consequence injuries (employees) 0.0 0.0 0.0 5 4 4
High-consequence injuries (additional workforce) 0.0 0.0 0.0 0 0 0
Total recordable injuries, total workforce 4.0 4.5 4.2 442 469 403
Recordable injuries (employees) 4.0 4.4 4.3 421 429 375
Recordable injuries (additional workforce) 3.5 6.1 3.6 21 40 28
Total minor injuries, total workforce 12.3 14.1 13.2 1 351 1 479 1 261
Lost days 1
Lost days due to recordable injuries, employees – – – 6 176 – –
1 Lost days is calculated based on working days, not calendar days.
Sick-leave, employees (%)
2024 2023 2022
Sick-leave due to diseases and recordable injuries 2.3 2.3 2.5
Atlas Copco Group 2024 64
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social information, continued
Additional information on working conditions
Engaging with own workforce and employee representatives
Atlas Copco Group views labor unions and employee representa-
tives as a valuable support for our employees, and bases the rela-
tionships with these parties on mutual respect and constructive
dialogue. As stipulated by the Group’s SHEQ policy, we consult
employee representatives, and representatives of additional work-
force, in decision-making processes on issues that affect them, par-
ticularly regarding health, safety and well-being issues. The Board
of Directors includes two employee representatives, each with one
personal deputy, who are elected to act on behalf of all employees.
As a decentralized organization, the Group’s engagement and
dialogue with labor unions takes place at a local level. In countries
where no independent labor unions exist, measures are taken to
establish forums for employer/employee relations, through envi-
ronment and safety committees. Labor relations are followed up
regularly at operational level and reviewed by internal audits.
Processes to remediate negative impacts and channels for own
workforce to raise concerns
Establishing processes and channels for employees to voice their
concerns is fundamental to our culture and to our ability to miti-
gate negative impacts. We strongly encourage our employees to
raise issues and to report non-compliance matters or other con-
cerns to their manager, their manager’s manager, or the human
resources department. The Group’s global whistleblowing system,
SpeakUp, is available if the reporter wishes to remain anonymous.
See page 71 for more details on The SpeakUp system, including
number of reported incidents, on page 72.
Freedom of association and collective bargaining
Labor practices and employee rights, such as collective bargaining,
are covered by the Group’s Code of Conduct. In 2024, 29% (28) of
our employees (FTE) were covered by collective bargaining agree-
ments. Employees not covered by collective agreements are pro-
tected by standards based on local and international benchmarks.
Collective bargaining and social
dialogue, at year end, %
2024 2023 2022
Employees covered by collective
bargaining agreement, headcount 29 – –
Employees covered by collective
bargaining agreement, FTE 29 28 29
Employees covered by workersʹ
representatives, headcount 33 – –
Collective bargaining and social dialogue per geography (headcount), at year end
Collective bargaining coverage Social Dialogue
Coverage
Rate
Employees,
EEA
Employees,
Non EEA
Workplace
repre sentation EEA
0–19% Denmark,
Switzerland,
Poland, Ireland,
Hungary, Türkiye,
Slovakia, Romania
North America,
Africa/Middle
East,
Asia/Oceania
Türkiye, Switzerland,
Slovakia, Portugal,
Finland, Poland, Ireland,
Romania, Greece
20–39% Germany,
Czech Republic
Spain, Czech Republic
40–59% Greece
60–79% Netherlands South America Italy, Germany, Norway,
Austria, Netherlands,
Denmark
80–100% Portugal, Spain,
Italy, Sweden,
Finland, Belgium,
France, Austria,
Norway
Belgium, Hungary
Sweden, France
In case of operational changes that may significantly affect employ-
ees or result in giving notice, the Group follows local laws and regu-
lations as well as collective bargaining agreements. The need for
transition assistance programs is assessed at local level and the
support provided through such programs is adapted to the situa-
tion at hand and to local market conditions. The Group’s internal
job market is available to all employees and provides opportunities
for internal mobility.
Adequate wages
Our employees’ performance should be rewarded in a fair way.
Legislated minimum wages should always be considered a mini-
mum level rather than a recommended level. Within the Group,
total rewards is defined as an individual’s salary, benefits, well-
being and career development. Compensation, and the related
practices and processes, should be based on the following guiding
principles: they should be performance-based, attractive, transpar-
ent, differentiated and inclusive.
Variable compensation is based on the Group’s performance and
the performance of each individual. Salaries are reviewed annually
following the salary review process in place in the local company.
We also provide a number of different pension solutions depend-
ing on location and local regulation. Our aim is to provide financial
security after retirement.
Atlas Copco Group 2024 65
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Workforce characteristics
Atlas Copco Group is a significant employer on the global market.
As a customer-focused company, 49% (48) of all employees work in
marketing, sales or service. The Group continuously strives to grow
local leaders.
Geographical spread of employees
at year end (FTE), %
2024 2023
North America 15 16
South America 5 4
Europe 44 44
Africa/Middle East 3 3
Asia/Oceania 33 33
Total 100 100
Geographical spread of nationality of senior
managers at year end (FTE), %
2024 2023
North America 10 11
South America 5 5
Europe 67 66
Africa/Middle East 3 3
Asia/Oceania 15 15
Total 100 100
Employees by professional category
at year end (FTE), %
2024 2023
Production 25 26
Marketing 8 8
Sales and support 13 13
Service 28 27
Administration 16 16
Research & development 10 10
Total 100 100
Geographical spread of additional workforce
at year end (FTE), %
2024 2023
North America 15 13
South America 1 2
Europe 42 44
Africa/Middle East 1 1
Asia/Oceania 41 40
Total 100 100
Additional workforce by professional category,
at year end (FTE), %
2024 2023
Production 37 41
Marketing 3 3
Service 18 14
Administration 18 19
Research & development 24 23
Total 100 100
Number of employees by contract type and gender (headcount), at year end
Female Male Other
Not
disclosed Total
Employees 12 726 43 035 12 2 55 775
– of which permanent
employees 12 564 42 689 12 2 55 267
– of which temporary
employees 162 346 0 0 508
Social information, continued
New employee hires and employee turnover
The total number and rate of external new employee hires (FTE)
in 2024 was 6 940 (7 936) which constitutes 13% (16) of the total
average number of employees during the year. The percentage of
externally recruited female employees was 26% (26).
Turnover, %
2024 2023 2022
Headcount
Total number of employees that
have left the company 6 453 – –
Total turnover, % 11.6 – –
FTE
Number of employees that have
left the company (voluntary leave) 3 287 3 158 3 667
Turnover (voluntary leave), % 6.1 6.2 8.0
Employee turnover is presented both based on headcount, where data is available only
for 2024 and on FTE where data is available for earlier years. The turnover data based on
headcount includes all employees that left the company, while the turnover based on FTE
includes voluntary leave only. For 2024, headcount per year end has been used for calcu-
lation. For the datapoint % turnover headcount, the denominator is based on headcount
per year end due to data availability. For the datapoint % turnover FTE, the denominator is
based on average number of FTE during the year.
Comments to workforce data
Employee data is compiled from local units, with the assumption that employees
work in the country of the reporting local unit. Number of employees by gender,
country and contract type are presented as headcount per year end.
The FTE (full time equivalent) methodology applied is where one FTE corre-
sponds to the normal full working hours in the local unit. Overtime hours is not
considered as additional FTE. The FTE calculation is based on the contract terms
at the end of the period.
Atlas Copco Group 2024 66
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Number of employees by country (headcount),
at year end
2024
China 7 577
Usa 7 237
Germany 6 217
Belgium 4 455
India 3 526
United Kingdom 2 994
South Korea 2 661
Czech Republic 1 983
Brazil 1 778
Sweden 1 720
France 1 547
Italy 1 520
Taiwan 867
Japan 823
Australia 818
Mexico 814
Spain 670
Türkiye 667
Netherlands 588
Canada 580
Poland 444
United Arab Emirates 409
Chile 351
Singapore 347
Indonesia 320
Malaysia 292
Thailand 284
South Africa 284
Switzerland 276
Slovakia 257
Social information, continued
Number of employees by country (headcount),
at year end
2024
Hungary 222
Saudi Arabia 213
New Zealand 206
Philippines 200
Egypt 175
Austria 175
Peru 172
Ireland 158
Denmark 158
Vietnam 157
Romania 123
Finland 119
Portugal 114
Argentina 111
Colombia 110
Norway 106
Morocco 90
Israel 80
Algeria 79
Russia 72
Kazakhstan 66
Kenya 63
Pakistan 58
Greece 51
Characteristics of non-employees
Non-employees in own workforce (headcount),
at year end
2024
Additional workforce 3 080
Atlas Copco Group 2024 67
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
WORKERS IN THE VALUE CHAIN
With more than 7 700 significant suppliers* worldwide, Atlas Copco
Group has a significant indirect impact on societies through our
value chain. By endorsing internationally recognized frameworks
relevant to business and human rights, we strive to be an ambassa-
dor with a positive influence on the working rights and conditions
of individuals in our value chain.
Some of our suppliers are located in countries with an inherent
risk to workers’ rights, including risks related to forced labor, child
labor or human trafficking. By setting high standards for our suppli-
ers, we work actively to uphold labor and human rights and to mini-
mize the likelihood of human rights breaches.
Policies related to value chain workers
The Group’s central policy document, our Code of Conduct, has
been developed based on international standards such as the
United Nations International Bill of Human Rights, the UN Global
Compact, the ILO Declaration on Fundamental Principles and
Rights at Work, the OECD Guidelines for Multinational Enterprises
on Responsible Business Conduct, and the UN Guiding Principles
for Business and Human Rights.
We are committed to upholding ethical conduct in all business
interactions and expect all business partners to follow our Code of
Conduct, which is available in more than 30 languages on our
Group website. All significant business partners, including those
located in risk countries, must commit to the Code of Conduct by
signing our Business Partner Criteria document. The two docu-
ments state our expectations on our business partners when it
comes to human rights and working conditions, including offering
a safe and healthy work environment, respect for freedom of asso-
ciation, and zero tolerance for modern slavery or forced labor, child
labor, discrimination and harassment.
Our Code of Conduct is complemented by our Human Rights
Statement, which was updated in 2024 and expands on the Group’s
commitment to respect and support human rights. The statement
reflects our corporate responsibility as defined in the United
Nations Guiding Principles on Business and Human Rights, which
we have adopted.
Actions and processes
Atlas Copco Group seeks to identify, prevent and mitigate any risks
of adverse human rights impacts and working conditions that are
associated with our own operations or our value chain. We have
established processes, aiming to ensure that our business part-
ners’ practices are aligned with our standards and with internation-
ally recognized frameworks. Through a risk-based approach, we
direct our actions and resources to the markets where there is
a heightened risk for human rights violations or poor working
conditions.
Evaluation and monitoring of business partners
Several aspects are considered during the business partner selec-
tion process. This includes screening for risks related to human
rights and labor rights to ensure that Atlas Copco Group’s expecta-
tions are being fulfilled. In 2024, we initiated onboarding of a new
platform for systematic management of supplier sustainability risk
and performance.
In connection with the onboarding process, business partners in
complex markets or for significant contracts are required to sign
our Business Partner Criteria document. We also encourage busi-
ness partners to take our Code of Conduct training which is avail-
able on our Group website.
Following our risk-based approach, we conduct on-site audits,
which include labor and human rights issues, and an assessment of
working conditions. In case potential negative impacts on workers
are discovered, we cooperate with the business partner through
conditional action plans and monitor the implementation and
effectiveness of remedial measures. If a business partner fails to
uphold our standards and does not improve, this may lead to a ter-
mination of the relationship as a last resort. See page 73 for more
details on how we work with suppliers.
Engaging with value chain workers
We build and maintain close relationships with our business part-
ners, in which we actively promote human and labor rights through
our Business Partner Criteria signing and follow-up process. We
also gain insight into their operations and working conditions via
site visits and during the onboarding process of new suppliers. All
Group employees undergo a Code of Conduct classroom training,
which covers human and labor rights topics. This makes them bet-
ter equipped to deal with and discuss challenging situations that
they may encounter. Through a risk-based approach, we prioritize
business partner follow-up in high-risk markets, i.e. markets where
adverse impacts are more likely to occur and where workers might
be more exposed and vulnerable. Direct engagement with workers
in the value chain consists of interaction through onsite audits of
selected suppliers. Through an external third-party solution we
evaluate and audit suppliers and this process supports the verifica-
tion of sound business practices within our supply chain.
All concerns related to the treatment of workers in our value
chain are taken seriously. The Group’s whistleblowing system,
SpeakUp, is available through our global website to all workers in
the value chain who wish to raise concerns related to us. The sys-
tem is operated through a third party, and reporters are guaran-
teed anonymity. All cases are handled and followed up by an impar-
tial investigator, and we collaborate with our business partners to
remediate any confirmed allegations of misconduct. Read more
about the system in the Governance section on page 71.
Targets
Our target is that 100% of our significant business partners commit
to our Code of Conduct, by signing our Business Partner Criteria
document. Their commitment needs to be reconfirmed every five
years. At the end of 2024, 91% of our significant suppliers* had
signed the compliance statement. We also measure annually and
follow up the number of suppliers audited on social or environmen-
tal issues, including the number of approved, conditionally
approved and rejected suppliers. See page 73.
From 2025 onwards, as part of our updated sustainability tar-
gets, we will measure and report the share of significant direct
material suppliers engaged in assessment on environmental, social
and governance aspects. Work on improvements will take place in
dialogue with the respective supplier.
* Significant suppliers to production and distribution units.
Social information, continued
Atlas Copco Group 2024 68
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
SAFETY OF END USERS
We provide and deliver a large range of technologies, products and
services that are used in a great variety of industries and applica-
tions. Our customers rely on us to provide technologies, products
and services that help them improve the efficiency and productivity
of their operations, while being safe and ergonomic to handle. Fail-
ure to meet safety and ergonomics expectations could be harmful
to our brand and business, and may entail legal and regulatory
risks. Working systematically to ensure the safety of our products
is therefore in focus in our product development process, and
throughout our operations, and key for creating customer value
and maintaining long-term customer relationships.
Policies related to safety of end users
We strive to live up to our customers’ expectations and according
to our Code of Conduct and SHEQ policy our products and services
are developed to meet the productivity, quality, functionality, safety
and environmental needs of our customers. Our products must
also be compliant with relevant laws and regulations, including
regulations regarding the health and safety of end users.
Our products are also properly tested, when required, for safety
prior to introduction, and are delivered with relevant product,
service and safety information.
Engaging with end users about impacts
Customer focus is a guiding principle for Atlas Copco Group and
our ambition is to build close relationships with our customers.
Surveys are conducted regularly to learn from customers’ experi-
ence and opinions about their interaction with us and about our
products and services. Customers are also often engaged directly
in feedback discussions to help us identify areas of improvement
regarding our products and services, including safety aspects.
Actions to manage impacts, risks and opportunities
Safety aspects embedded in product development
Operator safety and experience is an integrated part of the product
development process. This may include risk assessments and test-
ing to discover areas of improvement. Safety aspects are important
for each phase of the product’s life cycle, from its design to dis-
posal. By developing solutions based on automation and digitiza-
tion of products and services, both efficiency and safety for our
customers and end-users increase continuously.
Product safety training
Product safety training is offered to all relevant employees, includ-
ing field service engineers, as part of their onboarding and continu-
ous competency development. Customer training is available when
relevant to secure the safe handling of our products. We also
ensure that our products include operating instructions, safety
warnings, proper labels and markings to help our customers use
our products safely.
External certifications
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 external audits by independent third
parties.
Social information, continued
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. When required,
performance is tracked and the result is reported to responsible
managers.
Targets and metrics
Certifications
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 (occupational
health and safety). See page 36 for the number of operating units
certified according to the respective standard.
Customer satisfaction
At divisional level, a number of key performance indicators on
customer satisfaction have been established, which are continu-
ously followed up. That the Group’s products and services meet
customer expectations in terms of safety and health aspects is a
central part of customer satisfaction.
Atlas Copco Group 2024 69
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
• Social information
Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Social information, continued
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 employ-
ees, 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 sani-
tation. 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.
In 2024, Water for All supported some 70 water and sanitation projects in 40 countries, in
total reaching more than 200 000 people.
Being founded in 1984, Water for All celebrated its 40th anniversary in 2024. To mark the
occasion, all local Water for All organizations have been invited to join a special anniversary
project in Peru. This is the country of the very first Water for All project and we are partnering
with the same NGO as then, namely Save the Children. Thus far eight Water for All organiza-
tions are contributing to the project (of which two are from Epiroc) which is a joint venture
with the Peter Wallenberg Water for All Foundation. All in all the project will directly benefit
600 children in three different schools and more than 2000 community members indirectly.
Another milestone from this year is that Water for All is included in the Group targets for
our upcoming strategy period, 2025–2027. This supports the continued success of this
employee-driven initiative and confirms the company’s commitment. It also reinforces the
belief that access to clean water is a fundamental human right and that we see great benefits
in offering our employees the opportunity to engage in the water issue as a way to grow and
feel a sense of belonging. This can be done through voluntary donations or by getting
involved in one of the local organizations.
Water for All is managed by a central coordinator who supports 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 2024 including
both companies.
Water for All:
Employee community engagement
Atlas Copco Group 2024 70
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
• Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group promotes a culture of integrity through mutual respect, trust and
ethical conduct in all business interactions, externally as well as internally.
Governance information
Key performance indicators Target 2024 2023 2022 Comment
Employees sign the Group’s Code of Conduct compliance statement annually 100% 99% 99% 99%
Employees participate in the Group’s biennial ethics training
¹
100% – 99% –
Was first measured in 2023 New employees participate in the ethics training within 12 months 100% 95% 94% –
Significant suppliers ² sign the Code of Conduct compliance statement 100% 91% 90% 93%
Significant distributors sign the Code of Conduct compliance statement 100% 94% 94% 92%
¹ Excluding employees hired in 2023.
² Significant suppliers to production and distribution units.
BUSINESS CONDUCT AND CORPORATE CULTURE
As a global company with operations in around 180 countries
and with more than 7 700 significant suppliers
2
around the world,
Atlas Copco Group is committed to ethical business conduct and
compliance throughout our own operations and our value chain.
Atlas Copco Group has operations and suppliers in some coun-
tries that are associated with high risks of corruption. Doing things
the right way by upholding ethical business conduct strengthens
our brand, maintains stakeholder trust and may also create busi-
ness opportunities. A strong focus on the compliance with laws and
regulations, and with the Group’s Code of Conduct, also supports
us in preventing financial losses due to, for example, fines and
sanctions.
Business conduct policies and corporate culture
Atlas Copco Group builds trust by establishing relationships that
are based on integrity, fairness and respect with those impacted
by our operations. This is a vital part of our corporate culture and
we expect the same ethical business conduct 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 to 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 Multi-
national Enterprises. It covers subjects such as bribery and corrup-
tion, inside information, conflicts of interest, fair competition, trade
compliance, among others. Read more on page 35.
Adherence to the Code of Conduct is mandatory. Division presi-
dents, and managers at all levels of the organization, are expected
to support and promote adherence to Group values and policies.
Internal control is exercised through distribution of responsibility
and internal audits, including risk assessments. The Compliance
Board oversees compliance with the Code of Conduct, which is
approved annually by the Board of Directors.
Communication and training
To make sure that all employees are aware of our expectations, and
to reinforce our commitment to business integrity and compliance,
we put significant weight on communication, training and monitor-
ing. All employees must complete a leader-led ethics training every
two years. New employees are required to participate in the leader-
led training within 12 months of joining the Group. Every employee
is also required to take an annual training and sign a Code of Con-
duct compliance statement.
In 2023, an updated ethics training was rolled out to all employ-
ees in the Group. The training includes examples of ethical dilem-
mas, covering all aspects of the Code of Conduct, and participants
are invited to discuss how the different situations should be han-
dled. By the end of 2024, 99% had signed the annual compliance
statement and 95% of our employees that were hired during the
year had participated in the leader-led training.
Whistleblower function
To uphold our ethical business conduct, it is important that we are
made aware of any suspected breaches of laws or of our Code of
Conduct. Therefore, employees are strongly encouraged to report
any non-compliance concerns to their manager, manager’s man-
ager, human resources department or Holding Vice Presidents. If
this is not practical, or if the reporter wishes to stay anonymous,
concerns can be raised through our global whistle blowing system,
SpeakUp, which is hosted by an independent external party.
SpeakUp is publicly available, without any limitation, to anyone
who wishes to report an incident to us. Thus all employees and
other stakeholders, including workers in the value-chain and cus-
tomers are welcome to raise concerns using the system. It is avail-
able 24 hours a day, 7 days a week, and voice or text messages can
be left in more than 70 languages.
All cases are screened and assigned to an impartial investigator
who conducts the investigation with the support of Group Legal.
The investigations are professionally and confidentially handled,
and there are routines in place to avoid potential conflicts of inter-
est. Via the SpeakUp system, the investigating team can engage
with the reporter during the investigation, and ask for or provide
additional information and updates on the status and outcome
of the investigation. The SVP Chief Legal Officer informs the
Board about any critical concerns and annually about trends and
statistics.
Atlas Copco Group 2024 71
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
• Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Governance information, continued
The Code of Conduct includes a non-retaliation commitment to all
concerns raised in good faith and will never lead to adverse conse-
quences for the reporting individual, even if it results in the loss of
business. Anyone who retaliates against an employee, or other
stakeholder, for speaking up, will be subject to disciplinary mea-
sures, including potential termination of employment.
To ensure that all employees are aware of the SpeakUp system, it
is referred to in the mandatory annual Code of Conduct compliance
statement training. Cases are received from all regions where the
Group operates, which indicates that our employees are well aware
of the system.
Reported concerns through
SpeakUp, number 2024 2023 2022
Fraud 27 26 13
Labor relations, including
discrimination and harassment
297
296
245
Corruption and regulatory breach 30 29 28
Conflicts of interest 31 21 7
Other 76 49 70
Total 461 421 363
In 2024, we received a total of 461 cases through the system. In
40 cases no evidence of wrongdoing was found and in 38 cases
evidence could confirm that no wrongdoing had occurred. In 34
cases, appropriate disciplinary action, such as a written warning,
were taken against one or several employees as a result of the
investigations. In 19 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.
CORRUPTION AND BRIBERY
Prevention and detection of corruption and bribery
Atlas Copco Group has a zero tolerance approach to bribery and
corruption, directly or through third parties, including facilitation
payments. Firm disciplinary actions will be taken on any violation of
this rule. This applies to all employees, as well as to the Board of
Directors, and in all business dealings and transactions in all coun-
tries where we operate.
Corruption or facilitation payments are never acceptable in order
to secure a sale. This policy strengthens our culture and contrib-
utes to fair market competition. Employees that receive or pay
bribes will be subject to disciplinary actions including potential
termination of employment.
Dilemmas related to corruption and bribery are included in the
biennial leader-led ethics training, as well as in the annual training
on the Code of Conduct. These trainings are mandatory for all
employees. In 2024, the Board of Directors was also invited to
participate in the annual training on the 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 2024, 17% of all entities were
audited and no significant risks related to corruption were identi-
fied during these audits.
Incidents of corruption and bribery
In 2024, Atlas Copco Group had no convictions or fines for violation
of anti-corruption or anti-bribery laws.
Atlas Copco Group 2024 72
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
• Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
RELATIONSHIPS WITH BUSINESS PARTNERS
Working with business partners who share Atlas Copco Group’s
respect for human rights and standards regarding the environ-
ment, safety, quality and business conduct is central to efficiently
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 of
Conduct, together with screening and regular on-site audits, and
targeted training.
Our target is that 100% of our significant business partners
commit to our Code of Conduct, by signing our Business Partner
Criteria document. Their commitment needs to be reconfirmed
every five years. The document has been translated into more
than 30 languages and is available on the Group’s website.
Relationships with suppliers
Atlas Copco Group has a large international supplier base, which
presents challenges and risks can vary greatly between countries.
We use a risk-based approach and prioritize evaluating significant
suppliers, who represent the bulk of the purchase value, and sup-
pliers in markets with high risks related to corruption, environmen-
tal practices or human rights. At the end of 2024, 91% of our signifi-
cant suppliers had committed to our Code of Conduct by signing
the Business Partner Criteria.
Asia/Oceania, 40% North America, 12%
Europe, 44%
South America, 3%
Africa/Middle East, 1%
The Group’s purchasing strategies are decentralized to give the
organization higher flexibility and to ensure the right competence.
Purchasing councils oversee strategic purchasing practices 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 helps create societal value in the communi-
ties where the Group operates, by creating job opportunities as
well as generating direct and indirect income. This is primarily car-
ried out by local companies, which decreases lead times as well as
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.
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
Suppliers are assessed using an ESG assessment tool and rating
system. Audits, onsite or desktop, complement the assessment
when considered necessary. The audits result in a report which
may include concrete suggestions for improvements 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 Crite-
ria document. Suppliers who fail to meet the criteria and who do
not show a willingness to improve are rejected.
2024 2023 2022
Suppliers, number 7 709 7 109 6 214
Suppliers asked for commitment
to the Code of Conduct, number
7 409
6 929
6 029
Suppliers that confirmed their
commitment to the Code of
Conduct, %
91
90
93
Suppliers audited on safety,
health, social, governance and
1 140
966
922
Approved suppliers (no need to
follow up)
1 049
837
880
Conditionally approved suppliers
(monitored)
91
129
41
Rejected suppliers (relationship
discontinued)
0
0 1
issues, or non compliance of laws. Suppliers are rejected if they do not meet the
Group’s requirements and are not willing to improve.
Governance information, continued
* Definition of significant suppliers: All external suppliers of goods and services, direct
and indirect, to production and distribution units 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 viola-
tions, environmental risks or corruption etc., the purchasing threshold is lower
(approximately 13% of set value).
Atlas Copco Group 2024 73
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
• Governance information
GRI content index
Auditor’s report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
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.
During 2024 we have worked cross business areas to strengthen
our processes in this area, including better guidance to our suppli-
ers regarding our expectations on them.
Atlas Copco Group requires 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 of minerals. The process is described in
detail on our website, www.atlascopcogroup.com.
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. Data collection
and due diligence are conducted regularly using the Responsible
Minerals Initiative (RMI) guidelines and reporting templates.
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 disclosing
information about smelters in our supply chain and collaborate
with stakeholders.
Relationships with distributors and agents
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
2024, 94% of our significant distributors had signed the compliance
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 are adapted to local market needs by the customer cen-
ters. The sales strategies include choice of sales channels and dis-
tributor management. The marketing councils ensure cross-divi-
sional alignment and develop central policies and tools that impact
all operations, including programs for distributor certifications.
Sales compliance process
General managers, and ultimately the divisional presidents, are
responsible for the implementation of the Group’s policies and
guidelines and for making sales-related decisions. The business
area trade compliance teams and Group’s legal department sup-
port the organization on trade compliance matters, including
issues of sanctions and export control.
The Group’s customer sustainability assessment tool is made
available to support identification and evaluation of potential envi-
ronmental, labor, human rights and corruption risks.
Tax policy
Atlas Copco Group recognizes the key role that tax plays in advanc-
ing economic development and considers it vital to combat corrup-
tion 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
Governance information, continued
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 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. Key
figures for coming years will also become public under the EU
Directive on public country-by-country reporting.
* 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 2024 74
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
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, 156–158
2-2 Entities included in the organization’s sustainability reporting 156–158
2-3 Reporting period, frequency and contact point 33, 75
2-4 Restatements of information 33, 52–53
2-5 External assurance 81
2-6 Activities, value chain, and other business relationships Inside cover, 8–11,
19–31, 37–38
For information on significant acquisitions and divestments, see pages 20,
23, 26 and 29.
2-7 Employees 62, 66–67 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 66 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 34–36, 90–93
2-10 Nomination and selection of the highest governance body 92
2-11 Chair of the highest governance body 94 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 34, 92
2-13 Delegation of responsibility for managing impacts 34
2-14 Role of the highest governance body in sustainability reporting 34
2-15 Conflicts of interest 92 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 65, 68, 71, 92
2-17 Collective knowledge of the highest governance body 92
2-18 Evaluation of the performance of the highest governance body 92
2-19 Remuneration policies 119–120
2-20 Process to determine remuneration 92–93
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 equality 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, 93
2-23 Policy commitments 35
2-24 Embedding policy commitments 35, 68, 71
2-25 Processes to remediate negative impacts 65, 68, 71–72
GRI content index
Statement of use Atlas Copco Group has reported in accordance with the GRI Standards for the period 1 January, 2024 to 31 December, 2024.
GRI 1 used GRI 1: Foundation 2021
Atlas Copco Group 2024 75
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 71
2-27 Compliance with laws and regulations 52, 72 In 2024, there were no accidents resulting in adverse environmental effects
(0 in 2023). The Group’s total clean-up costs amounted to KSEK 0 (0). There
were no significant monetary sanctions for non-compliance with laws and
regulations during the year.
2-28 Membership associations 43
2-29 Approach to stakeholder engagement 39
2-30 Collective bargaining agreements 65
Material topic disclosures
GRI 3: Material topics 2021 3-1 Process to determine material topics 40–41 See more information on www.atlascopcogroup.com
3-2 List of material topics 41
3-3 Management of material topics 6, 34–36
ECONOMIC IMPACT
Economic performance
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36
GRI 201: Economic
performance 2016
201-2 Financial implications and other risks and opportunities due to climate change 44 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, 34–36, 71
GRI 201: Economic
performance 2016
205-1 Operations assessed for risks related to corruption 72 Omission: The number of audited units is not reported.
205-2 Communication and training about anti-corruption policies and procedures 71–73 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 72
Anti-competitive behavior
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36, 71–72
GRI 201: Economic
performance 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 71–72
ENVIRONMENTAL IMPACT
Energy
GRI 3: Material topics 2021 3-3 Management of material topics 34–36, 51
GRI 302: Energy 2016 302-1 Energy consumption within the organization 51
302-3 Energy intensity 51
Emissions
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36, 45–46
GRI content index, continued
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2024 76
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
GRI Standard Disclosure Location Comments and omissions
GRI 305: Emissions 2016 305-1 Direct greenhouse gas emissions (Scope 1) 53
305-2 Energy indirect greenhouse gas emissions (Scope 2) 53
305-3 Other indirect greenhouse gas emissions (Scope 3) 53
305-4 Greenhouse gas emissions intensity 53
Waste
GRI 3: Material topics 2021 3-3 Management of material topics
6, 34–36, 49
GRI 306: Waste 2020 306-1 Waste generation and significant waste-related impacts
50
306-2 Management of significant waste-related impacts
50
306-3 Waste generated
50
Omission: The Group has adapted the reporting of waste to ESRS Standards.
306-4 Waste diverted from disposal
50
306-5 Waste directed to disposal
50
Supplier environmental
assessment
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36, 73
GRI 308: Supplier environ-
mental assessment 2016
308-1 New suppliers that were screened using environmental criteria 73 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 73 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, 34–36
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 66 Omission: The Group does not report turnover by age group, gender or
region.
Occupational health
and safety
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36, 63–64
GRI 403: Occupational
health and safety 2018
403-1 Occupational health and safety management system 36, 63
403-2 Hazard identification, risk assessment, and incident investigation 63
403-3 Occupational health services 63
403-4 Worker participation, consultation, and communication on occupational health
and safety
63
403-5 Worker training on occupational health and safety 63
403-6 Promotion of worker health 63–64
403-7 Prevention/mitigation of occupational health/safety impacts directly linked by
business relationships
63
403-8 Workers covered by an occupational health and safety management system 36 Calculation based on units required to be ISO 45001-certified.
403-9 Work-related injuries 63–64
GRI content index, continued
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2024 77
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
GRI Standard Disclosure Location Comments and omissions
Training and education
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36, 60–61
GRI 404: Training and
education 2016
404-1 Average hours of training per employee 61 Omission: Data per employee category is not reported.
404-2 Programs for upgrading employee skills and transition assistance programs 61
404-3 Percentage of employees receiving regular performance and career
development reviews
61 Omission: Data per employee category is not reported.
Diversity and inclusion
GRI 3: Material topics 2021
3-3 Management of material topics 6, 34–36, 60, 62
GRI 405: Diversity and equal
opportunity 2016
405-1 Diversity of governance bodies and employees 6, 62 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 34–36, 62
GRI 406: Non-discrimination
2016
406-1 Incidents of discrimination and corrective actions taken 72
Supplier social
assessment
GRI 3: Material topics 2021 3-3 Management of material topics 6, 34–36, 73
GRI 414: Supplier social
assessment 2016
414-1 New suppliers that were screened using social criteria 73 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 73 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
34–36, 69
416-2 Incidents of non-compliance concerning the health and safety
impacts of products and services
78 During 2024, 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
34–36
GRI 417: Marketing and
labeling 2016
417-2 Incidents of non-compliance concerning products and service
information and labeling
78 During 2024, there were no reported significant incidents of non-
compliance related to products and service information resulting in any
significant fine, penalty or warning.
GRI content index, continued
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2024 78
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
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. 51
Employee health & safety 1. Total recordable incident rate (TRIR)
2. Fatality rate
3. Near-miss frequency rate (NMFR) RT-IG-320a.1 64
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. 45–46
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. 74, 85
Remanufacturing design & services Revenue from remanufactured products
and remanufacturing services RT-IG-440b.1 Share of revenues is not reported but topic is addressed. 49
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 66–67
Table 2. Activity metrics
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2024 79
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
ESRS index
Chapter Standard Disclosure requirement Page
General information
Basis for preparation
ESRS 2 BP-1, BP-2 33
Sustainability governance
ESRS 2 GOV-1, GOV-2, GOV-3, GOV-4, GOV-5 34–36
Strategy, business model and value chain
ESRS 2 SBM-1 37–38
Interests and views of stakeholders
ESRS 2 SBM-2 39
Double materiality assessment ESRS 2 IRO-1 40–41
Environmental information
Climate change
ESRS E1
E1-1, E1-2, E1-3, E1-4, E1-6, E1-8 44–46, 53
Resource use and circular economy
ESRS E5
E5-1, E5-2, E5-3, E5-5 49–50
EU Taxonomy regulation disclosures 54
Social information
Own workforce
ESRS S1 SBM-2, S1-1, S1-2, S1-3, S1-4, S1-5, S1-6, S1-9, S1-10, S1-13, S1-14
60–67
Workers in the value chain
ESRS S2 S2-1, S2-2, S2-3, S2-4, S2-5
68
Safety of end users
ESRS S4 S4-1, S4-2, S4-3, S4-4, S4-5
69
Governance information
Business conduct
ESRS G1 G1-1, G1-2, G1-3, G1-4
71–74
Atlas Copco Group is preparing to report in accor-
dance with the Corporate Sustainability Reporting
Directive (CSRD), for the sustainability report 2025,
according to Swedish law. This index has been cre-
ated for the sake of transparency and indicates
whether or not the Group has included information
on a particular ESRS disclosure in the sustainability
report. The section heading and/or page number
next to a disclosure requirement does not indicate
that we have reported all the information required by
ESRS under that particular disclosure.
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
• GRI content index
Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2024 80
THE YEAR IN REVIEW – SUSTAINABILITY REPORT
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 2024. Atlas Copco AB has defined the scope of the Sus-
tainability Report to the pages referred to in the GRI index on pages 75–78.
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 page 33 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
This is the translation of the auditor’s report in Swedish.
To Atlas Copco AB, corporate identity number 556014-2720
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
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
Directors 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
appropriate to provide a basis for our conclusions below.
Conclusion
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
Introduction
This is the Atlas Copco Group
The year in review
Business areas
Sustainability report
General information
Environmental information
EU Taxonomy regulation
disclosure
Social information
Governance information
GRI content index
• Auditor’s limited
assurance report
Risks, risk management
and opportunities
Atlas Copco AB shares
Corporate governance
Board of Directors
Group Management
Internal control over
reporting
Financials
Other information
Atlas Copco Group 2024 81
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. Results from
risk assessments performed by the Group’s holding companies
and by corporate functions are provided as insights to the divisions
when they evaluate their key risks. Specific deep dives are also per-
formed as the risk landscape changes. 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 framework as well as the overall risk assess-
ment process. All material sustainability topics identified have also
been fully integrated in the risk assessment process.
As the risk landscape is changing, the process is now including
scenarios planning to focus on large impacts instead of high likeli-
hood and improve business resilience and preparedness in case of
catastrophic single or successive events.
Loss prevention
The main purpose of the Group’s loss prevention program is to pre-
vent potential property losses and business interruptions by estab-
lishing best practices and creating awareness across the Group.
Atlas Copco Group’s Loss Prevention Standard stipulates Group
requirements in regards of loss prevention for product companies
and distribution centers, including areas like: construction, safety
systems, preventive measures and organizational plans. To ensure
alignment with the standard and to support sites’ understanding of
how the standard applies to each site, around 30 risk surveys are
performed annually, on top of the follow-up of the implementation
of previous recommendations. The results from the loss prevention
program are regularly consolidated and reported to Group Man-
agement.
This process includes recommendations related to natural haz-
ards. Focus is put on identifying high exposed sites due to climate
change, supporting prioritization of future investments.
Insurance
The Group Insurance Program is provided centrally to cover insur-
able risks common to all entities. The inhouse insurance company
Industria Insurance Company Ltd. retains part of the risk exposure
for the following insurance lines; property damage, business inter-
ruption, transport, and general and product liability. Financial lines
insurance and business travel insurance are managed by the
Risk management process
In Atlas Copco Group, Enterprise Risk Manage-
ment is not seen as a project but as a continuous
process. The risk environment changes over time
and it is therefore necessary to continuously iden-
tify, 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
Group’s Insurance and Risk Management department. However,
Industria is not the insurer for these two lines. Insurance capacity is
purchased from leading insurers and reinsurers by way of using
international insurance brokers. Claims management services are
partly purchased on a global basis from leading providers. Insur-
ance policies are issued on a local basis to ensure compliance with
local insurance laws as required.
Atlas Copco Group 2024 82
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.
Increased regulatory changes could affect the way our
processes are designed and how products or services are
manufactured or delivered.
• 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
financial 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 ability 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 risk
of material impact is low.
Taxes is an area with increased focus, especially transfer
pricing risks but also new tax rules and regulations.
The main risks related to sustainability data relate to incom-
plete or inconsistent reporting, and risks regarding the accu-
racy of data, due to for example reporting errors or estima-
tions, and the availability of upstream and/or downstream
value chain data.
• 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 will be subject to the Corporate Sustainability Reporting Directive (CSRD)
and is preparing to report in accordance with the European Sustainability Reporting
Standards (ESRS). One example of measures taken is the formation of a new Sustain-
ability 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 improve
transparency.
Atlas Copco Group 2024 83
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
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.
• Continuous investments in R&D allow the divisions to be ahead of competition.
• 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, energy-efficient
products and our Code of Conduct.
– Continue to develop close, long-term and strategic relation-
ships with customers and suppliers.
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
locations and if there are interruptions or lack of capacity in
these locations, this may have an effect on deliveries or on the
quality 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 improve business agility for
the Group.
– Reduction of fuel costs and resource requirements which
decrease the Group’s carbon footprint.
Key risks and how they are handled by Atlas Copco Group, continued
Atlas Copco Group 2024 84
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
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.
The lack of visibility of the full supply chain beyond Tier 1 could
lead to disruptions or sanctions.
• Business partners are selected and evaluated based on objective factors including
quality, delivery, price, and reliability, as well as on social/environmental responsibility.
• The onboarding process of new suppliers is regularly updated to capture new and
increased supply chain risks.
• 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 geo-
graphical crisis might lead to trade restrictions or tariffs.
The Group might inadvertently sell to sanctioned customers,
directly or indirectly.
Regional geopolitical conflicts or social unrests could have a
direct or indirect impact on operations and on the safety of
the Group’s employees.
• The Group regularly performs geopolitical assessments and build scenarios to
prepare for different outcomes.
• Crisis management guidelines are updated to better prepare for unexpected conflicts.
The Holdings regularly perform crisis exercises.
• 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.
• Collaboration with international health and security partners allow the Group to better
prepare, to inform its employees, and to have local support where and when needed.
– With a decentralized organization and a strategy to remain
close to the customers, the Group can quickly identify and
respond to market shifts and changes in legislation.
– De-risking some regions can lead to new market
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.
Artificial intelligence could increase existing threats like more
sophisticated cyberattacks or fraud.
The lack of understanding of generative AI (GenAI) could result
in losing intellectual property. It could also lead to negative
legal consequences if unproperly used.
• 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.
• Group IT launched GenAI Lighthouse to improve awareness around GenAI by provid-
ing guidance on its principles, solutions, risks and possibilities
– 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.
– A global approach to GDPR has made the Group well pre-
pared to face future data privacy regulations in other regions
and continents.
– A controlled use of GenAI will allow efficiencies, innovations
and new possibilities.
Key risks and how they are handled by Atlas Copco Group, continued
Atlas Copco Group 2024 85
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
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 in a timely manner may also
be a complex and demanding process. There is no guarantee
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, energy-efficient 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.
• A mapping of the climate change exposures for the main sites for the Group allows
the divisions to take appropriate decisions regarding potential additional mitigation
measures.
• 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.
– A better understanding of the consequences of climate
change will support right investment decisions and support
evaluate future global footprint.
– 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 and may present a
business opportunity.
– 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 2024 86
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 labor unions.
• Continuous contacts with universities and schools help recruiting new skills and
talents, and understanding the expectations of young generations.
• Atlas Copco created the Atlas Copco Group identity to enable brand management in
our decentralized organization. The Group Identity Council supports, anchor and
establish brand governance in the Group.
– 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 well-being 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
compulsory labor, modern slavery, poor working conditions,
limitations 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, including 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.
– New regulations enable the entire value chain to take respon-
sibility and protect human rights.
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 2024 87
THE YEAR IN REVIEW – RISKS, RISK MANAGEMENT AND OPPORTUNITIES
Atlas Copco Group 2024 88
Share price development and returns
In 2024, the price of the A share decreased 2.7% to SEK 168.9
(173.6) and the B share was unchanged at SEK 149.5 (149.4).
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
18% for the past ten years and 16% for the past five years.
The corresponding total return for Nasdaq Stockholm was
11% and 10%, respectively.
Trading and market capitalization
The Atlas Copco shares are listed on Nasdaq Stockholm,
which represented 21.1% of the total trading of the A share
(24.6% of the B share) in 2024. Other markets, so called
Multilateral Trading Facilities (MTF), e.g. CBOE accounted
for 40.5% (35.5% of the B share), and the remaining 38.4%
(39.9% of the B share) were traded outside public markets,
for example through over-the-counter trading.
The Atlas Copco AB share
Share information 2024-12-31 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 47 838 434 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
200000
400000
500000
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
20242023202220212020
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
7
2024202320222021202020192018201720162015
3.75
3.90
Dividend and redemption
per share, SEK
Extraordinary items, SEK
Earnings per share, SEK
Ordinary dividend per
share, SEK
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 2025 an
ordinary dividend of SEK 3.00 (2.80) per share to be paid for the 2024 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
dividend has averaged 51% of basic earnings per share during the last five
years. The ambition is to distribute about 50% of earnings as dividends to
shareholders. See more information on page 18.
The market capitalization at year end 2024 was MSEK 800 200
(815 902) and the company represented 7.3% (7.8) of the total
market value of Nasdaq Stockholm. The Atlas Copco share
was the most traded share in 2024 (most traded in 2023) 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 2024, there were 62 963 418 ADRs outstanding,
of which 50 717 086 represented A shares and 12 246 332
represented B shares.
Personnel stock option program and repurchase
of own shares
The Board of Directors will propose to the Annual General
Meeting 2025 a similar performance-based long-term
incentive program as in previous years. The company’s
holding of own shares on December 31, 2024 appears in
the table to the right.
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 2024 89
Ten largest shareholders *
December 31, 2024 % of votes % of capital
Investor AB 22.3 17.0
Swedbank Robur fonder 3.5 4.1
Handelsbanken fonder 2.2 1.9
SEB Investment Management 1.4 1.2
Nordea Investment Funds 1.2 1.1
Folksam 1.0 1.0
Avanza Fonder 0.9 0.9
SPP Fonder AB 0.8 0.8
Alecta Pensionsförsäkring 0.7 2.5
AMF – Försäkringar och Fonder 0.3 2.2
Others 65.7 67.3
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, 2024 % of shareholders % of capital
1–500 64.6 0.2
501–2 000 18.9 0.6
2 001–10 000 12.3 1.6
10 001–50 000 3.2 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
1 229 613 104 shares at SEK 8 –157.0 –9 731.8
Bonus issue No new shares issued 157.0
Important dates
2025 April 29 First quarter results
April 29 Annual General Meeting
April 30 * Shares trade excluding right to dividend of SEK 1.50
May 7 * Dividend payment date (preliminary)
July 18 Second quarter results
October 20 * Shares trade excluding right to dividend of SEK 1.50
October 23 Third quarter results
October 24 * Dividend payment date (preliminary)
2026 January 27 Fourth quarter results 2025
More information
• More data per share can be found on page 165 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/en/investors
Ownership category
December 31, 2024 % of capital
Shareholders domiciled abroad (legal entities and individuals) 52.4
Swedish financial companies 37.1
Swedish individuals 4.5
Other Swedish legal entities 2.0
Swedish social insurance funds 2.7
Swedish trade organizations 1.0
Swedish government and municipals 0.3
Total 100.0
¹ For more information please visit www.atlascopcogroup.com/en/investors.
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.
Shareholders by country
December 31, 2024, percentage of capital
Other, 14% Sweden, 47%
The United
Kingdom, 8%
The United
States, 32%
Other, 15%
Sweden, 48%
The United Kingdom, 7%
The United States, 30%
* 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 2024, Atlas Copco AB had 141 964 (125 893) 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% (34) of the voting
rights and 33% (31) of the capital. Swedish investors held 48% (47)
of the capital and represented 45% (45) 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 2024 90
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
Atlas 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 2024. The corporate governance
report has been examined by the auditors, see page 163.
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, creat-
ing lasting value and enabling customers to drive society for-
ward. Through energy-efficient products that reduce carbon
emissions, and by implementing values and processes with
respect for people and the planet, Atlas Copco Group can con-
tribute to a better tomorrow. As a leading industrial innovator
and global supplier, with a commitment to reduce green-
house gas emissions in line with the goals of the Paris Agree-
ment, and by setting Science-based targets, the Group shows
its ambition to be part of the trans-
formation to a low-carbon society.
Atlas Copco Group’s Code of Con-
duct is the most important instru-
ment to make sure the company
always acts with the highest ethical
standards and integrity. The main
international ethical standards sup-
ported by the Group are the Inter-
national Bill of Human Rights, the
International Labour Organization’s
Meetings of the Board and the
Nomination Committee during 2024
Preliminary full-year 2023
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
Meeting per capsulam,
to elect Heléne Mellquist
to Audit Committee
Q1
Q2
Q3
Q4
JAN.
FEB.
MAR.
APR.
MAY
JUN.
JUL.
AUG.
SEP.
OCT.
NOV.
DEC.
Nomination
Committee
meeting
Nomination
Committee
meeting
Statutory meeting
Review of management,
succession planning,
Industrial Technique and
strategy discussion
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
(ILO) 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.
The annual signing of the Code of Conduct, together with
training, supports the company’s employees to identify and
handle ethical dilemmas and strengthens the awareness 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
global third party operated system, SpeakUp, providing a
channel for anonymous reporting of suspected ethical mis-
conduct. 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
Related to appointment
of new CEO
Atlas Copco Group 2024 91
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 2024, Atlas Copco AB had 141 964 (125 893) 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% (34) of the voting
rights and 33% (31) of the capital. Swedish investors held 48% (47)
of the capital and represented 45% (45) 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 88–89.
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) 2024 was held on April 24,
2024 in Stockholm, Sweden. The Company also offered sharehold-
ers the possibility to exercise their voting rights by mail voting.
65% of the total number of votes in the Company and 65% of the
shares were represented.
Decisions at the AGM 2024 included:
• Adoption of the income statements and balance sheets of
Atlas Copco AB and Group for 2023.
• Discharge of liability of the Company’s affairs during the
2023 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 2.80 per share to be paid in two installments.
The first installment amount was SEK 1.40 per share and the
second installment amount was SEK 1.40 per share.
• That the number of directors elected by the AGM for a term end-
ing at the next AGM would be nine directors and no alternates.
• Election of the Board of Directors.
• A resolution of the Board of Directors’ fee.
• Approval of the remuneration report for 2023.
• Adoption of the Board’s proposal on guidelines for executive
remuneration.
• Approval of the reported scope and principles for a performance
based employee stock option plan for 2024 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 2025.
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
2024
1
2023
2
2022
3
2021
4
2020
5
0
150
300
450
600
AGM, votes, %
EGM, votes, %
Shareholders and proxy holders, number
% Number
General Meeting Attendance
¹ AGM 2024, mail voting was available.
² AGM 2023, mail voting was available.
³ AGM 2022, mail voting was available.
voting, no physical attendance.
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 2025
The Annual General Meeting will be held on April 29, 2025.
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, [email protected] or [email protected]
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 2024 92
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 nine Board members elected by the shareholders have
backgrounds from various industries. As proposed to the AGM
2024, four of the eight non-executive members are women. Three
members are born in the 1950’s, two in the 1960’s, and three in the
1970’s. The board members are of three different nationalities,
from Germany, Brazil and a majority of the board members come
from Sweden. A balanced gender distribution within the Board 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 2025. 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,
2024, together with the Chair of the Board shall form the Nomina-
tion Committee. The members of the Nomination Committee for
the AGM 2025 were announced on September 19, 2024, and repre-
sented approximately 29% 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 2025:
Petra Hedengran, Investor AB, Chair of the Nomination Committee;
Joachim Spetz, Swedbank Robur Fonder AB; Helen Fasth Gillstedt,
Handelsbanken Fonder AB; Patrik Jönsson, SEB Fonder; 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 2024 the Board of Directors consisted of nine elected
members, including the President and CEO. The Board also had two
employee representatives, each with one personal deputy. Atlas
Copco Group fulfilled the 2024 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
whistle blowing solution, SpeakUp. Besides the general distribution
of responsibilities that apply, in accordance with the Swedish Com-
panies 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 ten meetings in 2024. Four were physical meet-
ings of which three were held at Atlas Copco AB in Nacka and one at
Atlas Copco Airpower N.V. in Belgium. Four meetings were held vir-
tually and two per capsulam. The attendance at Board meetings is
presented on page 94–95.
The Board continuously evaluates the performance of the President
and CEO, Vagner Rego. 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 2024 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 3 400 000.
• Each of the other Board members not employed by the
Company was granted SEK 1 100 000.
• An amount of SEK 450 000 was granted to the Chair of the Audit
Committee and SEK 280 000 to each of the other members of
this committee.
• An amount of SEK 175 000 was granted to the Chair of the
Remuneration Committee and SEK 130 000 to each of the other
members of this committee.
• An amount of SEK 130 000 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 2024 93
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 at least one of the members is independent from the Com-
pany and its main shareholders. The Audit Committee’s primary
task is to support the Board of Directors in fulfilling its responsibili-
ties in the areas of audit and internal control, accounting, financial-
and sustainability 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, monitoring the external auditor, consid-
ering any inspection findings, review and monitor the indepen-
dence of the external auditor, and assist the Nomination Commit-
tee in the selection of the auditor.
During the year, the committee convened five times. All mem-
bers were present at these meetings, except Heléne Mellquist that
participated in the last three 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 2024 were Anna Ohlsson-
Leijon, Chair, Johan Forssell, Hans Stråberg and from April 2024
Heléne Mellquist.
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 remuner-
ation are reviewed annually and the Annual General Meeting
2024 approved the guidelines for remuneration. See also note 4.
The Remuneration Committee had three meetings in 2024. 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 2024 were
Hans Stråberg, Chair, Gordon Riske and Peter Wallenberg Jr.
7. Auditor
The task of the external auditor is to audit Atlas Copco Group’s con-
solidated accounts and annual report, as well as to review the
Board and the CEO’s management of the Company. At the AGM
2024 the audit firm Ernst & Young AB, Sweden, was elected external
auditor up to and including the AGM 2025 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 2024, 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 98–99.
9. Group Management
Besides the President and CEO, the Group Management during 2024
consists of four business area presidents and five senior vice presi-
dents responsible for the main Group functions; Corporate Communi-
cations, Human Resources, Controlling and Finance, Information
Technology (IT), and Legal. The President and CEO is responsible for
the ongoing management of the Group following the Board’s guide-
lines 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 2024, the AGM decided
to adopt the Board’s proposal, and a new proposal will be presented
at the AGM 2028. 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 2024. 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 2024 has been to
reduce the Group’s CO 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 Remuner-
ation Report to the AGM for approval. In 2024, the AGM decided to
approve the Remuneration Report for 2023.
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. To Atlas Copco Group, creating value for stake-
holders includes the integration of sustainability aspects 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 stakeholder-
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. Consid-
eration is also given to 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 and profitable growth for the Group. 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 opportunities so that non-sharehold-
ers can address the Group in various stakeholder dialogues.
Atlas Copco Group 2024 94
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
Vagner Rego
Board member, President and CEO, born 1972
Jumana Al-Sibai
Board member, born 1972
Heléne Mellquist
Board member, born 1964
Education M.Sc. in Mechanical Engineering, Chalmers
University of Technology, Gothenburg.
Mechanical engineering from Mackenzie
University and an MBA from Ibmec Business
School, both in Brazil.
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 Manage-
ment, Stockholm School of Economics.
Nationality / Elected Swedish / 2013 Brazilian / 2024 German / 2023 Swedish / 2022
External memberships Chair of AB SKF, Roxtec AB and Anocca AB.
Board member of Investor AB. Member
of The Royal Swedish Academy of Engi-
neering Sciences.
Board of Trustees at FKFS (Forschungsinstitut
für Kraftfahrwesen und Fahrzeugmotoren
Stuttgart), Germany.
Chair of Hultafors Group, Innovalift, Caljan and
Latour Industries. Board member of Alimak
Group and Nord-Lock Group.
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*.
Business Area President for Compressor
Technique. President for the Compressor
Technique Service division.
Member of the Management Board of
Mahle GmbH with responsibility for Thermal
and Fluid Systems*. CEO of Mahle Behr
GmbH & Co. KG, EVP/SVP positions at Robert
Bosch GmbH with focus on general manage-
ment, sales, and strategy. 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 10 of 10 4 of 10 ⁷ 10 of 10 10 of 10
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 2024, KSEK ¹ 4 030 1 092 1 302
Holdings in
Atlas Copco AB ²
166 380 class A shares
132 000 class B shares
59 911 synthetic shares
28 179 class A shares
412 096 employee stock options 6 355 synthetic shares 11 097 synthetic shares
Board of Directors
Board members
appointed
by the labor unions
Benny Larsson
Position: Board member
Year of birth: 1972
Nationality: Swedish
Elected: 2018
Board meetings: 10 of 10
Helena Hemström
Position: Board member
Year of birth: 1969
Nationality: Swedish
Elected: 2021
Board meetings: 10 of 10
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 year end 2024, including those of close relatives or legal entities and grant for 2024.
³ President and CEO of Atlas Copco AB.
⁴ Board member of Investor AB, which is a larger owner in Atlas Copco AB.
⁵ Consultant to an indirect major shareholder.
⁶ Board member of an indirect owner of Atlas Copco AB.
⁷ Full attendance since their election at the Annual General Meeting in April 2024.
⁸ Elected at the Annual General meeting in April 2024.
* Current position.
Atlas Copco Group 2024 95
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
Karin Rådström
Board member, born 1979
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, Switzer-
land, in collaboration with the State Univer-
sity 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.
Master of Engineering in Industrial
Management, Royal Institute of
Technology, Stockholm
Nationality / Elected Swedish / 2008 Swedish / 2020 American / German / 2020 Swedish / 2012 Swedish / 2024
External memberships Board member of ABB Ltd., Wärtsilä
Oyj Abp, Finland and Epiroc AB.
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.
Chair of Knut and Alice Wallenberg Foun-
dation, Wallenberg Foundations AB and
FAM Förvaltning AB (The Grand Group).
Board member of Scania.
Principal work experience
and other information
Senior Advisor, Investor AB and Wallen-
berg Investments AB*. President and CEO
of Investor AB. Managing Director, Head
of Core Investments, Investor AB.
Group Executive Vice President and head of
Business Area Europe & APACMEA 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. Chair-
man of the Management Board of Linde
Material Handling GmbH, Germany, Chair-
man of the Management Board of Deutz
AG, Germany, Managing Director of KUKA
Roboter GmbH, Germany, and manage-
ment positions at KUKA Schweiß anlagen &
Roboter GmbH, Germany and KUKA Weld-
ing Systems & Robot Corporation, U.S.
President and CEO of The Grand Hotel
Holdings, General Manager, The
Grand Hotel, President Hotel Division
Stockholm-Saltsjön.
CEO of Daimler Truck Holding AG and mem-
ber of the Board of Management*. CEO of
Mercedes-Benz Trucks and member of the
Board of Management at Daimler Truck Hold-
ing AG. Member of the Executive Board at
Scania, responsible for Sales and Marketing.
Head of Buses & Coaches, Director of Pre
Sales & Marketing Communication (Kenya)
and several managing positions all within
Scania.
Attendance
Board meetings 10 of 10 10 of 10 10 of 10 10 of 10 4 of 10 ⁷
Annual General Meeting Yes Yes Yes Yes Yes
Independence
To Atlas Copco AB and
its management Yes Yes Yes Yes Yes
To major shareholders No ⁵ Yes Yes No ⁶ Yes
Fees and holdings
Total fees 2024, KSEK ¹ 1 320 1 642 1 316 1 316 963
Holdings in Atlas Copco AB ² 44 000 class B shares, 16 424 synthetic shares 1 400 class B shares, 14 499 synthetic shares 19 228 synthetic shares 666 668 class A shares, 19 228 synthetic shares 2 804 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 year end 2024, including those of close relatives or legal entities and grant for 2024.
³ President and CEO of Atlas Copco AB.
⁴ Board member of Investor AB, which is a larger owner in Atlas Copco AB.
⁵ Consultant to an indirect major shareholder.
⁶ Board member of an indirect owner of Atlas Copco AB.
⁷ Full attendance since their election at the Annual General Meeting in April 2024.
⁸ Elected at the Annual General meeting in April 2024.
* Current position.
Board members
appointed
by the labor unions
Thomas Nilsson
Position: Deputy
Year of birth: 1972
Nationality: Swedish
Elected: 2021
Board meetings: 9 of 10
Mikael Lindberg
Position: Deputy
Year of birth: 1967
Nationality: Swedish
Elected: 2024
Board meetings: 1 of 10 ⁸
Atlas Copco Group 2024 96
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, the Group Management consists of four business area presidents and five senior
vice presidents responsible for the main Group functions; Corporate Communications, Human Resources,
Controlling and Finance, Information Technology (IT), and Legal.
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. He has also been General Manager
for Construction Technique’s customer center
in Brazil and President of the Compressor
Technique Service division. Before he was
appointed President and CEO he was Business
Area President for Compressor Technique.
Position: President and CEO
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:
1996/2024
Holdings in Atlas Copco AB 1
28 179 class A shares
412 096 employee stock options
Philippe Ernens
Philippe Ernens, started as a product engineer
in the Airtec division within the Compressor
Technique business area in 1995. After several
positions as team leader and engineering man-
ager, he became General Manager and contin-
ued to a role as Vice President Operations High
Pressure. In 2012 he became President of the
Airtec division and in 2016 he took up the posi-
tion as president for the Oil-free Air division.
Position: Senior Executive Vice President
and Business Area President Compressor
Technique
Year of birth: 1971
Education: Degree in Electromechanical
Engineering from the University of Liege,
Belgium.
Nationality: Belgian
Employed/In current position since:
1995/2024
Holdings in Atlas Copco AB 1
11 348 class A shares
245 774 employee stock options
Koen Lauwers 2
Koen Lauwers career in the Group includes
international assignments in the United States
and Germany. In 2023 he was appointed Presi-
dent of the Semiconductor division and prior to
this he held the same position for the Industrial
Vacuum division, both within the Vacuum
Technique business area.
Position: Senior Executive Vice President and
Business Area President Vacuum Technique
Year of birth: 1974
Education: M.Sc in Electromechanical
Engineering from the University of Leuven
and an MBA from the Antwerp Management
School, both in Belgium.
Nationality: Belgian
Employed/In current position since:
1997/2025
Holdings in Atlas Copco AB 1
10 248 class A shares
240 073 employee stock options
Henrik Elmin
Henrik Elmin joined Atlas Copco Group as
General Manager for Atlas Copco Tools Custom-
er 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
420 829 employee stock options
1 Holdings as per year end 2024, 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.
2 In current position since January 1, 2025.
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
12 788 class B shares
370 923 employee stock options
Atlas Copco Group 2024 97
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
5 655 class A shares
154 654 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
Group’s Compressor Technique business area.
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
220 508 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
4 601 class A shares
240 class B shares
111 379 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
1 230 class B shares
232 662 employee stock options
Group Management, continued
Marcus Hvied
Marcus Hvied was IT Director Global IT Shared
Services for Assa Abloy before he joined Atlas
Copco Group as General Manager IT Services
and Head of Group IT.
Position: Senior Vice President,
Chief Information Officer
Year of birth: 1978
Education: Master of Science in Applied
Information technology, from Chalmers
University of Technology and the IT-University
in Gothenburg.
Nationality: Swedish
Employed/In current position since:
2018/2024
Holdings in Atlas Copco AB 1
1 500 class A shares
121 150 employee stock options
1 Holdings as per year end 2024, 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.
2 In current position since January 1, 2025.
Atlas Copco Group 2024 98
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
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 internal control system and governs the
work through the Audit Committee and CEO. Group Manage-
ment sets the tone for the organization, influencing the control
awareness 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 subsid-
iaries, and followed up with newsletters and conference calls.
Trainings are also held for complex accounting areas and new
accounting policies. The policies and guide lines detail the appro-
priate 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) and business acquisitions.
The internal control process is based on a control framework
that creates structure for the other four components of the
process – risk assessment, control activities, information and
communication 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 follow up that internal control is adequate to address the iden-
tified risks. The key risk areas for the financial reporting and control
activities 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 2024 99
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 disaggre-
gated and analyzed by
type (e.g. goods, services
and rental) and by period
at local, divisional, busi-
ness 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 country 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, divi-
sional, 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
example, training programs for different categories of employees.
A common Group reporting system is used to report and consoli-
date all financial information.
4
Monitoring
Examples of monitoring activities for the financial and
sustainability reporting include:
• Management at divisional, business area and Group level
regularly 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. The internal audit pro-
cess serves the purpose to identify improvements of the internal
controls but also to identify and recommend leading practices
within the Group. Furthermore, the process aims to serve as a
tool for employee professional development and competence
developments within the area of internal control. Internal audits
are annually planned or initiated by the Group internal audit func-
tion with a risk-based approach. Internal audits are conducted
under leadership of Group internal audit staff with audit team
members having diverse functional competencies 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 71.
• 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 101
Consolidated statement of comprehensive income 101
Consolidated balance sheet 102
Consolidated statement of changes in equity 103
Consolidated statement of cash flows 104
Note
1
Information of material accounting principles,
key sources of uncertainty in estimates and judgements 105
2 Acquisitions 110
3 Segment information 114
4 Employees and personnel expenses 117
5 Remuneration to auditors 121
6 Other operating income and expenses 121
7 Financial income and expenses 121
8 Taxes 121
9 Other comprehensive income 123
10 Earnings per share 123
11 Intangible assets 124
12 Property, plant and equipment 126
13 Investments in associated companies and joint ventures 127
14 Other financial assets 127
15 Inventories 128
16 Trade receivables 128
17 Other receivables 128
18 Cash and cash equivalents 128
19 Equity 129
20 Borrowings and trade payables 130
21 Leases 132
22 Employee benefits 134
23 Other liabilities 140
24 Provisions 140
25 Assets pledged and contingent liabilities 140
26 Financial exposure and principles for control of financial risks 141
27 Related parties 145
PARENT COMPANY Page
Income statement 146
Statement of comprehensive income 146
Balance sheet 146
Statement of changes in equity 147
Statement of cash flows 147
Note
A1 Material accounting principles 148
A2 Employees and personnel expenses and remuneration to auditors 149
A3 Other operating income and expenses 149
A4 Financial income and expenses 149
A5 Appropriations 150
A6 Income tax 150
A7 Intangible assets 150
A8 Property, plant and equipment 150
A9 Deferred tax assets and liabilities 151
A10 Shares in Group companies 151
A11 Other financial assets 151
A12 Other receivables 151
A13 Cash and cash equivalents 151
A14 Equity 151
A15 Post-employment benefits 152
A16 Other provisions 153
A17 Borrowings 153
A18 Other liabilities 154
A19 Financial exposure and principles for control of financial risks 154
A20 Assets pledged and contingent liabilities 154
A21 Directly owned subsidiaries 155
A22 Related parties 156
Atlas Copco Group 2024 100
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
Consolidated income statement
| For the year ended December 31 | |||
Amounts in MSEK | Note | 2024 | 2023 |
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 | 2024 | 2023 |
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 2024 101
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, 2024 | Dec. 31, 2023 |
| 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 | ||
Total current assets | |||
TOTAL ASSETS |
Amounts in MSEK | Note | Dec. 31, 2024 | Dec. 31, 2023 |
EQUITY | Page 103 | ||
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 | 20 | ||
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 2024 102
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
2024 | 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 | ||||||||
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 | ||||||||
| Additional information concerning equity is disclosed in note 19. | ||||||||
Atlas Copco Group 2024 103
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 | 2024 | 2023 |
| 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 | 2024 | 2023 |
| 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 | – | – | |
| Acquisition of non-controlling interest | – | ||
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 2024 104
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 2024 105
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 2024 106
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 2024 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
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements, continued
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 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
1. Information of material accounting principles, key sources of uncertainty in estimates and judgements, continued
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 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
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
| The following summarizes the acquisitions during 2024 and 2023: | ||||||
| Number of | ||||||
| Acquisition date | Country | Business area | Revenues ¹ | employees ¹ | ||
2024 | Dec. 3 | Metalplan Equipamentos LTDA, (“Metalplan“) | Brazil | Compressor Technique | 120 | 90 |
2024 | Nov. 18 | VisionTools Bildanalyse Systeme GmbH (“VisionTools“) | Germany | Industrial Technique | 160 | 80 |
2024 | Nov. 8 | ESA Service S.r.l, (“ESA Service“) | Italy | Vacuum Technique | 118 | 40 |
2024 | Nov. 6 | SCS Makina A.Ş. (“SCS“) | Türkiye | Compressor Technique | 40 | 11 |
2024 | Nov. 5 | Pennine Pneumatic Services Limited (“PPS“) | United Kingdom | Compressor Technique | ² | 84 |
2024 | Nov. 4 | Air Way Automation Ltd (“Air Way“) | U.S.A. | Industrial Technique | 370 | 98 |
2024 | Oct. 3 | Perslucht Wilda B.V. (“Perslucht Wilda“) | Netherlands | Power Technique | ² | 9 |
2024 | Oct. 2 | Kinder-Janes Engineers Ltd (“Kinder-Janes“) | United Kingdom | Power Technique | 164 | 20 |
2024 | Oct. 2 | Pomac BV (“Pomac“) | Netherlands | Power Technique | 95 | 23 |
2024 | Oct. 2 | Arlógica Máquinas e Equipamentos, Lda (“Arlógica“) | Portugal | Compressor Technique | ² | 9 |
2024 | Oct. 2 | Easy Filtration SRL (“Easy Filtration“) | Italy | Compressor Technique | ² | 9 |
2024 | Sep. 3 | Integrated Pump Rental (“IPR“) | South Africa | Power Technique | 57 | 18 |
2024 | Sep. 3 | Anhui Nuoyi Technologies Co. Ltd., (“NOY“) | China | Vacuum Technique | 178 | 78 |
2024 | Sep. 3 | Generator Rental Services Limited (“GRS“) | New Zealand | Power Technique | 263 | 58 |
2024 | Aug. 2 | AVT Services Pty Limited, (“AVT Services“) | Australia | Vacuum Technique | ² | 15 |
2024 | Aug. 2 | Danmil A/S (“Danmil“) | Denmark | Compressor Technique | 126 | 26 |
2024 | Jul. 29 | Compressed Air Technologies, Inc. | U.S.A. | Compressor Technique | ² | 53 |
2024 | Jul. 23 | Kingsdown Compressed Air Systems Limited (“Kingsdown“) | United Kingdom | Compressor Technique | 31 | 13 |
2024 | Jul. 4 | Mont-Tech Ltd. (“Mont-Tech”) | Czech republic | Industrial Technique | 40 | 27 |
2024 | Jul. 2 | Swed-Weld AB (”Swed-Weld”) | Sweden | Industrial Technique | 30 | 10 |
2024 | Jul .2 | Empresa Comercial Vele Leiva EMCOVELE, S.A. (”Emcovele S.A.”) | Ecuador | Compressor Technique | ² | 49 |
2024 | Jun. 14 | AE Industrial Ltd. (”AE Industrial”) | United Kingdom | Compressor Technique | ² | 40 |
2024 | Jun. 5 | Baraghini Compressori Srl (”Baraghini”) | Italy | Compressor Technique | 31 | 14 |
2024 | May 7 | Montajes Electromecánicos e Ingeniería, S.A. de C.V. (”MEISA”) | Mexico | Vacuum Technique | ² | 52 |
2024 | May 3 | Tecturbo | Brazil | Compressor Technique | 60 | 51 |
2024 | Apr. 4 | Delta Temp | Belgium etc. | Power Technique | 100 | 20 |
2024 | Apr. 2 | Presys Co., Ltd. | South Korea | Vacuum Technique | 275 | 134 |
2024 | Mar. 5 | Zahroof Valves Inc. | U.S.A. | Compressor Technique | 130 | 44 |
2024 | Mar. 4 | Pacific Sales & Service, Inc. (Pacific Air Compressors) | U.S.A. | Compressor Technique | ² | 15 |
2024 | Mar. 4 | Druckluft-Technik-Nord GmbH | Germany | Compressor Technique | ² | 18 |
2024 | Feb. 7 | Ace Air (NI) Ltd. | United Kingdom | Compressor Technique | ² | 8 |
2024 | Jan. 9 | Hycomp Inc. | U.S.A. | Compressor Technique | 85 | 37 |
2024 | Jan. 3 | KRACHT GmbH (Kracht) | Germany | Power Technique | 766 | 440 |
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 |
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.
Atlas Copco Group 2024 110
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 2024 and 2023, continued | ||||||
| Number of | ||||||
Acquisition date | Country | Business area | Revenues ¹ | employees ¹ | ||
| 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 |
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 | |
2024 | 2023 | |
Intangible assets | 739 | 322 |
Property, plant and equipment ¹ | 119 | 19 |
Other assets | 436 | 91 |
Cash and cash equivalents | 90 | 44 |
Interest-bearing liabilities and borrowings | –110 | –14 |
Other liabilities and provisions | –410 | –169 |
Net identifiable assets | 864 | 293 |
Goodwill | 664 | 159 |
Total consideration | 1 528 | 452 |
Deferred consideration | 10 | 50 |
Cash and cash equivalents acquired | –90 | –44 |
Net cash outflow | 1 448 | 458 |
Atlas Copco Group 2024 111
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 | |
2024 | 2023 | |
Intangible assets | 511 | 420 |
Property, plant and equipment ¹ | 212 | 175 |
Other assets | 328 | 263 |
Cash and cash equivalents | 386 | – |
Interest-bearing liabilities and borrowings | –207 | –195 |
Other liabilities and provisions | –226 | –171 |
Net identifiable assets | 1 004 | 492 |
Non-controlling interests | –11 | – |
Goodwill | 605 | 466 |
Total consideration | 1 598 | 958 |
Deferred consideration | –206 | –17 |
Cash and cash equivalents acquired | –386 | – |
Net cash outflow | 1 006 | 941 |
Industrial Technique | Recognized values | |
2024 | 2023 | |
Intangible assets | 459 | 34 |
Property, plant and equipment ¹ | 163 | 1 |
Other assets | 386 | 15 |
Cash and cash equivalents | 160 | 2 |
Interest-bearing liabilities and borrowings | –108 | –21 |
Other liabilities and provisions | –212 | –22 |
Net identifiable assets | 848 | 9 |
Goodwill | 518 | 71 |
Total consideration | 1 366 | 80 |
Deferred consideration | –184 | 23 |
Cash and cash equivalents acquired | –160 | –2 |
Net cash outflow | 1 022 | 101 |
Power Technique | Recognized values | |
2024 | 2023 | |
Intangible assets | 2 014 | 975 |
Property, plant and equipment ¹ | 829 | 1 139 |
Other assets | 574 | 553 |
Cash and cash equivalents | 185 | 155 |
Interest-bearing liabilities and borrowings | –475 | –818 |
Other liabilities and provisions | –864 | –575 |
Net identifiable assets | 2 263 | 1 429 |
Goodwill | 1 875 | 1 553 |
Total consideration | 4 138 | 2 982 |
Deferred consideration | –5 | –13 |
Cash and cash equivalents acquired | –185 | –155 |
Net cash outflow | 3 948 | 2 814 |
Atlas Copco Group 2024 112
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 | ||
2024 | 2023 | |
Intangible assets | 3 723 | 1 751 |
Property, plant and equipment ¹ | 1 323 | 1 334 |
Other non-current assets | 4 | 4 |
Inventories | 751 | 424 |
Trade receivables ² | 760 | 467 |
Other current assets | 209 | 27 |
Cash and cash equivalents | 821 | 201 |
Interest-bearing liabilities and borrowings | –900 | –1 048 |
Other liabilities and provisions | –805 | –581 |
Deferred tax assets/liabilities, net | –907 | –356 |
Net identifiable assets | 4 979 | 2 223 |
Non-controlling interests | –11 | – |
Goodwill | 3 662 | 2 249 |
Total consideration | 8 630 | 4 472 |
Deferred consideration | –385 | 43 |
Cash and cash equivalents acquired | –821 | –201 |
Net cash outflow | 7 424 | 4 314 |
¹ Includes right-of-use assets.
² The gross amount is 786 (477) of which 26 (10) is expected to be uncollectible.
| Contribution from businesses | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Group | |||||
| acquired in 2024 and 2023 by | ||||||||||
| business area | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Contribution from date of control | ||||||||||
Revenues | 552 | 206 | 323 | 695 | 52 | 15 | 998 | 971 | 1 925 | 1 887 |
Operating profit | –37 | –4 | 14 | 9 | –38 | –4 | 22 | 176 | –39 | 177 |
Profit for the year | –40 | 95 | ||||||||
| Contribution if the acquisition | ||||||||||
| had occurred on Jan. 1 | ||||||||||
Revenues | 1 193 | 379 | 610 | 899 | 523 | 30 | 1 558 | 2 036 | 3 884 | 3 344 |
Operating profit | –20 | –7 | 56 | 12 | 87 | –9 | 194 | 311 | 317 | 307 |
Profit for the year | 219 | 213 |
Atlas Copco Group 2024 113
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
2024 | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Common Group functions | Eliminations | Group |
Revenues from external customers | 77 433 | 40 419 | 29 456 | 29 463 | – | – | 176 771 |
Inter-segment revenues | 826 | 22 | 66 | 159 | – | –1 073 | – |
Total revenues | 78 259 | 40 441 | 29 522 | 29 622 | – | –1 073 | 176 771 |
– of which equipment | 57% | 74% | 73% | 56% | – | – | 63% |
– of which service ¹ | 43% | 26% | 27% | 44% | – | – | 37% |
Operating profit | 19 716 | 8 541 | 6 066 | 5 488 | –1 596 | –49 | 38 166 |
– of which share of profit in associated companies and joint ventures | – | 49 | –4 | – | – | – | 45 |
Net financial items | –366 | ||||||
Income tax expense | –8 006 | ||||||
Profit for the year | 29 794 | ||||||
| Non-cash expenses | |||||||
Depreciation/amortization | 2 352 | 2 210 | 1 583 | 2 272 | 308 | –35 | 8 690 |
Impairment | 3 | 77 | 31 | 4 | 8 | – | 123 |
Other non-cash expenses | –70 | 57 | 160 | 215 | –326 | – | 36 |
Segment assets | 51 461 | 52 614 | 37 109 | 39 866 | 3 545 | –1 410 | 183 185 |
– of which goodwill | 8 149 | 16 380 | 15 990 | 11 287 | – | – | 51 806 |
Investments in associated companies and joint ventures | – | 706 | 134 | – | – | – | 840 |
Unallocated assets | 24 513 | ||||||
Total assets | 51 461 | 53 320 | 37 243 | 39 866 | 3 545 | –1 410 | 208 538 |
Segment liabilities | 27 317 | 9 067 | 7 063 | 6 200 | 3 687 | –1 197 | 52 137 |
Unallocated liabilities | 42 641 | ||||||
Total liabilities | 27 317 | 9 067 | 7 063 | 6 200 | 3 687 | –1 197 | 94 778 |
| Capital expenditures | |||||||
Property, plant and equipment | 2 865 | 1 673 | 1 210 | 3 467 | 496 | –95 | 9 616 |
– of which right-of-use assets | 1 105 | 315 | 606 | 527 | 299 | – | 2 852 |
Intangible assets | 214 | 587 | 522 | 309 | 156 | – | 1 788 |
Total capital expenditures | 3 079 | 2 260 | 1 732 | 3 776 | 652 | –95 | 11 404 |
Goodwill acquired | 664 | 605 | 518 | 1 875 | – | – | 3 662 |
2024 | Compressor Technique | Vacuum Technique | Industrial Technique | Power Technique | Common Group functions | Eliminations | Group |
Items affecting comparability in Operating profit | – | –4 ¹ | –174 ² | – | –397 ³ | – | –575 |
Atlas Copco Group 2024 114
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
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 |
Atlas Copco Group 2024 115
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 | |||
2024 | 2023 | 2024 | 2023 | ||
North America | U.S.A. | 41 036 | 39 562 | 19 673 | 16 255 |
Other countries | 6 924 | 6 458 | 2 476 | 2 376 | |
47 960 | 46 020 | 22 149 | 18 631 | ||
South America | Brazil | 4 944 | 4 570 | 1 143 | 899 |
Other countries | 2 656 | 2 437 | 331 | 256 | |
7 600 | 7 007 | 1 474 | 1 155 | ||
Europe | Belgium | 1 636 | 1 636 | 5 119 | 3 539 |
France | 5 373 | 5 208 | 756 | 701 | |
Germany | 9 957 | 10 702 | 34 933 | 31 319 | |
Italy | 4 247 | 4 445 | 2 602 | 2 360 | |
Sweden | 2 356 | 2 288 | 1 855 | 1 771 | |
United Kingdom | 4 675 | 4 334 | 16 309 | 14 837 | |
Other countries | 20 726 | 19 993 | 5 962 | 4 481 | |
48 970 | 48 606 | 67 536 | 59 008 | ||
Africa/Middle East | South Africa | 908 | 946 | 375 | 204 |
Other countries | 7 838 | 7 087 | 660 | 466 | |
8 746 | 8 033 | 1 035 | 670 | ||
Asia/Oceania | Australia | 3 676 | 2 859 | 3 768 | 3 655 |
Greater China | 33 430 | 35 810 | 5 412 | 3 905 | |
India | 6 874 | 5 976 | 697 | 525 | |
Japan | 3 173 | 3 321 | 701 | 634 | |
South Korea | 8 268 | 7 937 | 3 591 | 3 164 | |
Other countries | 8 074 | 7 095 | 1 569 | 620 | |
63 495 | 62 998 | 15 738 | 12 503 | ||
Total | 176 771 | 172 664 | 107 932 | 91 967 |
| Geographic distribution | Compressor Technique, % | Vacuum Technique, % | Industrial Technique, % | Power Technique, % | Group, % | |||||
| 2024 | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues | Orders received | Revenues |
North America | 25 | 26 | 23 | 26 | 34 | 34 | 25 | 27 | 26 | 27 |
South America | 6 | 6 | – | – | 3 | 3 | 7 | 7 | 4 | 4 |
Europe | 28 | 30 | 15 | 15 | 34 | 35 | 32 | 31 | 27 | 28 |
Africa/Middle East | 10 | 7 | 1 | 1 | 2 | 1 | 10 | 8 | 7 | 5 |
Asia/Oceania | 31 | 31 | 61 | 58 | 27 | 27 | 26 | 27 | 36 | 36 |
| 2023 | ||||||||||
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 |
Atlas Copco Group 2024 116
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 | 2024 | 2023 | ||||||
1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | |
Compressor Technique | 18 710 | 20 136 | 19 031 | 20 382 | 17 632 | 18 600 | 19 493 | 19 827 |
– of which external | 18 507 | 19 905 | 18 819 | 20 202 | 17 466 | 18 407 | 19 300 | 19 614 |
– of which internal | 203 | 231 | 212 | 180 | 166 | 193 | 193 | 213 |
Vacuum Technique | 9 719 | 10 089 | 10 444 | 10 189 | 9 989 | 10 911 | 10 802 | 11 110 |
– of which external | 9 711 | 10 089 | 10 439 | 10 180 | 9 979 | 10 906 | 10 795 | 11 101 |
– of which internal | 8 | – | 5 | 9 | 10 | 5 | 7 | 9 |
Industrial Technique | 7 514 | 7 471 | 6 832 | 7 705 | 6 492 | 7 280 | 7 306 | 7 375 |
– of which external | 7 492 | 7 460 | 6 821 | 7 683 | 6 469 | 7 260 | 7 290 | 7 356 |
– of which internal | 22 | 11 | 11 | 22 | 23 | 20 | 16 | 19 |
Power Technique | 7 202 | 7 391 | 7 072 | 7 957 | 5 996 | 6 828 | 7 142 | 6 933 |
– of which external | 7 165 | 7 349 | 7 026 | 7 923 | 5 947 | 6 791 | 7 100 | 6 883 |
– of which internal | 37 | 42 | 46 | 34 | 49 | 37 | 42 | 50 |
| Common Group | ||||||||
| functions/eliminations | –270 | –284 | –274 | –245 | –248 | –255 | –258 | –291 |
Total | 42 875 | 44 803 | 43 105 | 45 988 | 39 861 | 43 364 | 44 485 | 44 954 |
Quarterly data, Operating profit by business area
| Operating profit | 2024 | 2023 | ||||||
1 | 2 | 3 | 4 | 1 | 2 | 3 | 4 | |
Compressor Technique | 4 642 | 4 990 | 4 974 | 5 110 | 4 245 | 4 472 | 4 856 | 4 915 |
in % of revenues | 24.8% | 24.8% | 26.1% | 25.1% | 24.1% | 24.0% | 24.9% | 24.8% |
Vacuum Technique | 2 119 | 2 027 | 2 014 | 2 381 | 2 268 | 2 504 | 2 465 | 2 370 |
in % of revenues | 21.8% | 20.1% | 19.3% | 23.4% | 22.7% | 22.9% | 22.8% | 21.3% |
Industrial Technique | 1 649 | 1 557 | 1 364 | 1 496 | 1 371 | 1 585 | 1 647 | 1 580 |
in % of revenues | 21.9% | 20.8% | 20.0% | 19.4% | 21.1% | 21.8% | 22.5% | 21.4% |
Power Technique | 1 393 | 1 406 | 1 274 | 1 415 | 1 145 | 1 294 | 1 429 | 1 323 |
in % of revenues | 19.3% | 19.0% | 18.0% | 17.8% | 19.1% | 19.0% | 20.0% | 19.1% |
| Common Group | ||||||||
| functions/eliminations | –458 | –514 | –289 | –384 | –330 | –666 | –280 | –1 102 |
Operating profit | 9 345 | 9 466 | 9 337 | 10 018 | 8 699 | 9 189 | 10 117 | 9 086 |
in % of revenues | 21.8% | 21.1% | 21.7% | 21.8% | 21.8% | 21.2% | 22.7% | 20.2% |
Net financial items | 16 | –192 | –153 | –37 | –44 | –163 | –189 | –253 |
Profit before tax | 9 361 | 9 274 | 9 184 | 9 981 | 8 655 | 9 026 | 9 928 | 8 833 |
in % of revenues | 21.8% | 20.7% | 21.3% | 21.7% | 21.7% | 20.8% | 22.3% | 19.6% |
| Average number of employees | 2024 | 2023 | ||||
Women | Men | Total | Women | Men | Total | |
| Parent Company | ||||||
Sweden | 85 | 41 | 126 | 78 | 41 | 119 |
| Subsidiaries | ||||||
North America | 1 871 | 6 696 | 8 567 | 1 769 | 6 413 | 8 182 |
South America | 610 | 1 813 | 2 423 | 560 | 1 684 | 2 244 |
Europe | 5 371 | 18 386 | 23 757 | 4 997 | 17 612 | 22 609 |
– of which Sweden | 386 | 1 168 | 1 554 | 347 | 1 110 | 1 457 |
Africa/Middle East | 291 | 1 163 | 1 454 | 255 | 1 101 | 1 356 |
Asia/Oceania | 3 841 | 14 038 | 17 879 | 3 499 | 13 101 | 16 600 |
Total in subsidiaries | 11 984 | 42 096 | 54 080 | 11 080 | 39 911 | 50 991 |
Total | 12 069 | 42 137 | 54 206 | 11 158 | 39 952 | 51 110 |
For additional information regarding workforce profile, see the Sustainability report, page 66.
Females in the Board of Directors and Group Management, % | Dec. 31, 2024 | Dec. 31, 2023 |
| Parent Company | ||
Board of Directors ¹ | 50 | 33 |
Group Management | 30 | 33 |
Remuneration and other benefits | Group | |
2024 | 2023 | |
Salaries and other remuneration | 37 626 | 33 708 |
Contractual pension benefits | 1 939 | 1 798 |
Other social costs | 6 696 | 5 970 |
Total | 46 261 | 41 476 |
Pension obligations to Board members and Group Management ¹ | 4 | 4 |
Atlas Copco Group 2024 117
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
| 2024 | 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 | 1 675 | 1 700 | 8 666 | 655 | 4 030 | –243 | 3 787 |
| Other members of the Board: | |||||||
Jumana Al-Sibai | 542 | 550 | 2 804 | – | 1 092 | –195 | 897 |
Johan Forssell | 954 | – | – | 366 | 1 320 | 117 | 1 437 |
Heléne Mellquist | 542 | 550 | 2 804 | 210 | 1 302 | –61 | 1 241 |
Anna Ohlsson-Leijon | 542 | 550 | 2 804 | 550 | 1 642 | –68 | 1 574 |
Gordon Riske | 542 | 550 | 2 804 | 224 | 1 316 | –78 | 1 238 |
Karin Rådström ⁴ | 413 | 550 | 2 804 | – | 963 | –195 | 768 |
Peter Wallenberg Jr | 542 | 550 | 2 804 | 224 | 1 316 | –78 | 1 238 |
Other members of the Board previous year | – | – | – | – | – | 134 | 134 |
Employee representatives (4) ⁵ | 116 | – | – | – | 116 | – | 116 |
Total | 5 868 | 5 000 | 25 490 | 2 229 | 13 097 | –667 | 12 430 |
| 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 |
Atlas Copco Group 2024 118
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
| 2024 | Total, excl. recognized costs | Recognized costs for | Total expense | ||||
Remuneration and other benefits to Group Management, KSEK | Base salary 2 | Variable compensation ³ | Other benefits ⁴ | Pension fees | for share based payments | share based payments ⁵ | recognized |
| President and CEO | |||||||
Vagner Rego , from May 1, 2024 ¹ | 10 667 | 7 680 | 169 | 3 733 | 22 249 | 4 362 | 26 611 |
Mats Rahmström, until April 30, 2024 ¹ | 11 538 | 5 040 | 44 | 2 450 | 19 072 | 22 899 | 41 971 |
Other members of Group Management (9 positions) | 42 115 | 16 198 | 6 975 | 10 611 | 75 899 | 17 275 | 93 174 |
Total | 64 320 | 28 918 | 7 188 | 16 794 | 117 220 | 44 536 | 161 756 |
Total remuneration and other benefits to the Board and Group Management | 174 186 |
| 2023 ¹ | Total, excl. recognized costs | Recognized costs for | Total expense | ||||
Remuneration and other benefits to Group Management, KSEK | Base salary | Variable compensation ³ | Other benefits ⁴ | Pension fees | for share based payments | share based payments ⁵ | recognized |
| President and CEO | |||||||
Mats Rahmström ² | 20 683 | 14 221 | 130 | 7 070 | 42 104 | 10 328 | 52 432 |
Other members of Group Management (8 positions) | 33 018 | 18 459 | 6 241 | 9 126 | 66 844 | 11 933 | 78 777 |
Total | 53 701 | 32 680 | 6 371 | 16 196 | 108 948 | 22 261 | 131 209 |
Total remuneration and other benefits to the Board and Group Management | 150 027 |
Atlas Copco Group 2024 119
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, 2024 ¹ | ||
| Other members of | ||
Grant Year | President and CEO | Group Management |
2018 | – | 61 936 |
2019 | 142 242 | 556 750 |
2020 | – | 19 845 |
2021 | 91 877 | 487 203 |
2022 | 82 872 | 487 124 |
2023 | 95 105 | 548 543 |
2024 ² | 278 904 | 481 295 |
Total | 691 000 | 2 642 696 |
Atlas Copco Group 2024 120
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
Audit fees and other services | 2024 | 2023 |
| Ernst & Young | ||
Audit fee | 119 | 108 |
Audit activities other than the audit assignment | – | 1 |
Other services, tax | 4 | 5 |
Other services, other Other audit firms | 4 | 2 |
Audit fee | 13 | 19 |
Total | 140 | 135 |
Other operating income | 2024 | 2023 |
Commissions received | 27 | 28 |
Income from insurance operations | 128 | 146 |
Capital gain on sale of property, plant and equipment | 59 | 75 |
Exchange-rate differences, net | 47 | – |
Other operating income | 817 ¹ | 295 |
Total | 1 078 | 544 |
Other operating expenses | 2024 | 2023 |
| Capital loss on sale of property, plant and | ||
| equipment | –64 | –33 |
Exchange-rate differences, net | – | –1 016 |
Other operating expenses | –470 ¹ | –833 ¹ |
Total | –534 | –1 882 |
6. Other operating income and expenses, continued
Financial income and expenses | 2024 | 2023 |
| Interest income: | ||
– cash and cash equivalents | 660 | 393 |
| Capital gain: | ||
– other assets | 3 | 9 |
Change in fair value – other assets | 44 | 38 |
Financial income | 707 | 440 |
| Interest expenses: | ||
– borrowings | –838 | –850 |
– derivatives | –8 | –23 |
– pension provisions, net | –63 | –27 |
– deferred considerations | –9 | –14 |
Change in fair value – other liabilities and borrowings | –3 | – |
Foreign exchange loss, net | –151 | –175 |
Impairment loss | –1 | – |
Financial expenses | –1 073 | –1 089 |
Financial expenses, net | –366 | –649 |
Income tax expense | 2024 | 2023 |
Current taxes | –8 880 | –9 334 |
Deferred taxes | 874 | 944 |
Total | –8 006 | –8 390 |
2024 | 2023 | |
Profit before tax | 37 800 | 36 442 |
Weighted average tax based on national rates | –8 071 | –8 557 |
in % | 21,4 | 23.5 |
| Tax effect of: | ||
– non-deductible expenses | –346 | –401 |
– withholding and other taxes on dividends | –610 | –498 |
– tax-exempt income | 1 179 | 1 064 |
| Adjustments from prior years: | ||
– current taxes | 56 | –103 |
– deferred taxes | –7 | 77 |
Effects of tax losses/credits utilized | 6 | 29 |
Change in tax rate, deferred tax | –53 | 19 |
Tax losses not recognized | –31 | –48 |
Other items | –129 | 28 |
Income tax expense | –8 006 | –8 390 |
Effective tax in % | 21.2 | 23.0 |
Atlas Copco Group 2024 121
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 | 2024 | 2023 |
Opening balance net, Jan. 1 | –33 | –552 |
Business acquisitions | –907 | –356 |
Charges to profit for the year | 874 | 944 |
Tax on amounts recorded to other comprehensive income | 142 | –75 |
| Tax related to equity settled share-based | ||
| payment | –21 | 69 |
Translation differences | –96 | –63 |
Closing balance net, Dec. 31 | –41 | –33 |
Deferred tax assets and liabilities | 2024 | 2023 | ||||
Assets | Liabilities | Net balance | Assets | Liabilities | Net balance | |
Intangible assets | 973 | 6 044 | –5 071 | 779 | 5 248 | –4 469 |
Property, plant and equipment 1 | 380 | 1 683 | –1 303 | 304 | 1 368 | –1 064 |
Other financial assets | 19 | 189 | –170 | 22 | 145 | –123 |
Inventories | 3 072 | 55 | 3 017 | 2 762 | 40 | 2 722 |
Current receivables | 295 | 320 | –25 | 305 | 310 | –5 |
Operating liabilities | 1 113 | 70 | 1 043 | 984 | 24 | 960 |
Provisions | 531 | 12 | 519 | 534 | 17 | 517 |
Post-employment benefits | 542 | 37 | 505 | 557 | 23 | 534 |
Borrowings ¹ | 1 355 | 16 | 1 339 | 988 | 14 | 974 |
Loss/credit carry-forwards | 673 | – | 673 | 516 | – | 516 |
Other items ² | 3 | 571 | –568 | 4 | 599 | –595 |
Deferred tax assets/liabilities | 8 956 | 8 997 | –41 | 7 755 | 7 788 | –33 |
Netting of assets/liabilities | –6 381 | –6 381 | – | –5 521 | –5 521 | – |
Net deferred tax balances | 2 575 | 2 616 | –41 | 2 234 | 2 267 | –33 |
2024 | 2023 | |
Expires after 1–2 years | 2 | 6 |
Expires after 3–4 years | 1 | 1 |
Expires after 5–6 years | 22 | 4 |
No expiry date | 1 716 | 1 635 |
Total | 1 741 | 1 646 |
2024 | 2023 | |
Intangible assets | 533 | 453 |
Property, plant and equipment | –94 | –177 |
Other financial assets | 1 | 19 |
Inventories | 78 | 327 |
Current receivables | 23 | –28 |
Operating liabilities | 89 | 27 |
Provisions | –31 | 149 |
Post-employment benefits | –44 | –89 |
Borrowings | 133 | 91 |
Other items | 40 | –173 |
Changes due to temporary differences | 728 | 599 |
Loss/credit carry-forwards | 146 | 345 |
Charges to profit for the year | 874 | 944 |
Atlas Copco Group 2024 122
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 123
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 2024 | 2023 | |||||
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 | 218 | –57 | 161 | –753 | 192 | –561 |
| Items that may be reclassified subsequently to profit or loss | ||||||
| Translation differences: | ||||||
| – on foreign operations | 6 555 | 79 | 6 634 | –4 713 | –13 | –4 726 |
Hedge of net investments in foreign operations | –603 | 124 | –479 | 148 | –31 | 117 |
| Cash flow hedges | – | – | – | 28 | –6 | 22 |
| Total other comprehensive income | 6 170 | 146 | 6 316 | –5 290 | 142 | –5 148 |
| Attributable to non-controlling interests | ||||||
Translation differences on foreign operations | 3 | – | 3 | –4 | – | –4 |
Total other comprehensive income | 6 173 | 146 | 6 319 | –5 294 | 142 | –5 152 |
10. Earnings per share
Amounts in SEK | Basic earnings per share | Diluted earnings per share | ||
2024 | 2023 | 2024 | 2023 | |
Earnings per share | 6.11 | 5.76 | 6.10 | 5.75 |
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 | 2024 | 2023 |
Profit for the year | 29 782 | 28 040 |
Average number of shares outstanding | 2024 | 2023 |
Basic weighted average number of shares outstanding | 4 873 635 218 | 4 871 364 070 |
Effect of employee stock options | 8 018 677 | 7 486 197 |
Diluted weighted average number of shares outstanding | 4 881 653 895 | 4 878 850 267 |
Potentially dilutive instruments
As of December 31, 2024, 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 2023 and 2024
programs exceeded the average share price for series A shares, SEK 183.40
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 2018, 2019, 2021
and 2022 programs.
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 124
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
2024 | 2023 | |||
Trademarks | Goodwill | Trademarks | Goodwill | |
Compressor Technique | – | 8 149 | – | 7 078 |
Vacuum Technique | 3 146 | 16 380 | 2 897 | 14 542 |
Industrial Technique | – | 15 990 | – | 14 713 |
Power Technique | – | 11 287 | – | 9 028 |
Total | 3 146 | 51 806 | 2 897 | 45 361 |
2024 | 2023 | |||||
Internally generated | Acquired | Total | Internally generated | Acquired | Total | |
Cost of sales | 20 | 24 | 44 | 23 | 25 | 48 |
Marketing expenses | 26 | 1 596 | 1 622 | 23 | 1 446 | 1 469 |
Administrative expenses | 108 | 72 | 180 | 108 | 58 | 166 |
Research and development expenses | 994 | 776 | 1 770 | 868 | 748 | 1 616 |
Total | 1 148 | 2 468 | 3 616 | 1 022 | 2 277 | 3 299 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 125
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
Internally generated intangible assets | Acquired intangible assets | |||||||
| Product | Other technology | Product | Marketing and | Other technology | ||||
| 2024 | development | and contract based | development | Trademarks | customer related | and contract based | Goodwill | Total |
| Cost | ||||||||
Opening balance, Jan. 1 | 8 852 | 2 003 | 672 | 6 156 | 15 292 | 10 872 | 45 400 | 89 247 |
Investments | 1 264 | 370 | – | – | – | 154 | – | 1 788 |
Business acquisitions | – | – | 6 | 251 | 2 765 | 701 | 3 662 | 7 385 |
Disposals | –241 | –40 | – | – | –10 | –42 | – | –335 |
Reclassifications | 210 | 15 | –655 | – | – | 463 | – | 33 |
| Translation differences | 290 | 81 | 36 | 403 | 990 | 747 | 2 787 | 5 336 |
Closing balance, Dec. 31 | 10 375 | 2 429 | 59 | 6 810 | 19 037 | 12 895 | 51 849 | 103 454 |
| Amortization and impairment losses | ||||||||
Opening balance, Jan. 1 | 5 031 | 1 186 | 115 | 1 870 | 7 893 | 5 612 | 39 | 21 746 |
Amortization for the period | 889 | 145 | 1 | 227 | 1 357 | 879 | – | 3 498 |
Impairment charge for the period | 105 | 9 | 4 | – | – | – | – | 118 |
Disposals | –241 | –40 | – | – | –10 | –42 | – | –333 |
Reclassifications | 86 | – | –83 | – | – | 6 | – | 9 |
Translation differences | 165 | 52 | 7 | 102 | 581 | 398 | 4 | 1 309 |
Closing balance, Dec. 31 | 6 035 | 1 352 | 44 | 2 199 | 9 821 | 6 853 | 43 | 26 347 |
Carrying amounts at Jan. 1 | 3 821 | 817 | 557 | 4 286 | 7 399 | 5 260 | 45 361 | 67 501 |
Carrying amounts at Dec. 31 | 4 340 | 1 077 | 15 | 4 611 | 9 216 | 6 042 | 51 806 | 77 107 |
Internally generated intangible assets | Acquired intangible assets | |||||||
| Product | Other technology | Product | Marketing and | Other technology | ||||
| 2023 | development | and contract based | development | Trademarks | customer related | and contract based | Goodwill | Total |
| Cost | ||||||||
Opening balance, Jan. 1 | 7 997 | 1 875 | 696 | 5 889 | 14 504 | 10 943 | 44 338 | 86 242 |
Investments | 1 091 | 229 | 1 | – | – | 143 | – | 1 464 |
Business acquisitions | – | – | –2 | 433 | 1 160 | 160 | 2 249 | 4 000 |
Disposals | –108 | –59 | – | – | –6 | –70 | – | –243 |
Reclassifications | 11 | –16 | – | – | 26 | –10 | – | 11 |
Translation differences | –139 | –26 | –23 | –166 | –392 | –294 | –1 187 | –2 227 |
Closing balance, Dec. 31 | 8 852 | 2 003 | 672 | 6 156 | 15 292 | 10 872 | 45 400 | 89 247 |
| Amortization and impairment losses | ||||||||
Opening balance, Jan. 1 | 4 330 | 1 107 | 115 | 1 688 | 6 877 | 5 019 | 39 | 19 175 |
Amortization for the period | 786 | 154 | 5 | 205 | 1 230 | 837 | – | 3 217 |
Impairment charge for the period | 82 | – | – | – | – | – | – | 82 |
Disposals | –105 | –59 | – | – | –6 | –69 | – | –239 |
Reclassifications | 1 | –1 | – | 3 | 22 | –10 | – | 15 |
Translation differences | –63 | –15 | –5 | –26 | –230 | –165 | – | –504 |
Closing balance, Dec. 31 | 5 031 | 1 186 | 115 | 1 870 | 7 893 | 5 612 | 39 | 21 746 |
Carrying amounts at Jan. 1 | 3 667 | 768 | 581 | 4 201 | 7 627 | 5 924 | 44 299 | 67 067 |
Carrying amounts at Dec. 31 | 3 821 | 817 | 557 | 4 286 | 7 399 | 5 260 | 45 361 | 67 501 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 126
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
2024 | Buildings and land | Machinery and equipment | Construction in progress and advances | Total | Rental equipment |
| Cost | |||||
Opening balance, Jan. 1 | 8 964 | 17 864 | 2 796 | 29 624 | 9 229 |
Investments | 94 | 1 074 | 3 071 | 4 239 | 2 525 |
Business acquisitions | 355 | 554 | 37 | 946 | 106 |
Disposals | –145 | –728 | –2 | –875 | –833 |
Reclassifications | 1 568 | 1 248 | –2 796 | 20 | –91 |
Translation differences | 401 | 715 | 123 | 1 239 | 352 |
Closing balance, Dec. 31 | 11 237 | 20 727 | 3 229 | 35 193 | 11 288 |
| Depreciation and impairment losses | |||||
Opening balance, Jan. 1 | 3 529 | 11 732 | 5 | 15 266 | 4 884 |
Depreciation for the period | 399 | 1 840 | – | 2 239 | 1 098 |
Impairment charge for the period | 2 | 8 | –5 | 5 | – |
Disposals | –91 | –673 | – | –764 | –765 |
Reclassifications | 4 | 32 | – | 36 | –79 |
Translation differences | 178 | 488 | – | 666 | 203 |
Closing balance, Dec. 31 | 4 021 | 13 427 | – | 17 448 | 5 341 |
Carrying amounts at Jan. 1 | 5 435 | 6 132 | 2 791 | 14 358 | 4 345 |
Carrying amounts at Dec. 31 | 7 216 | 7 300 | 3 229 | 17 745 | 5 947 |
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 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 127
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 | 2024 | 2023 |
Opening balance, Jan. 1 | 854 | 939 |
Dividends | –44 | –34 |
Profit for the year after income tax | 45 | 41 |
Translation differences | –15 | –92 |
Closing balance, Dec. 31 | 840 | 854 |
| 2024 | ||||||||
| 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 | 81 | 35 | 46 | 60 | 2 | 25 | 12 |
Reintube S.L. | Spain | 10 | 5 | 5 | 14 | 0 | 47 | 0 |
| Joint ventures | ||||||||
Toku-Hanbai Group | Japan | 392 | 149 | 243 | 723 | –9 | 50 | 122 |
Ulvac Cryogenics Inc. | Japan | 1 097 | 368 | 729 | 792 | 98 | 50 | 706 |
Total | 840 |
| 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 |
2024 | 2023 | |
| Non-current | ||
Pension and other similar benefit assets (note 22) | 1 432 | 1 132 |
Derivatives at fair value through profit or loss | 2 | – |
Financial assets at fair value through OCI | 1 | 1 |
Financial assets at fair value through profit or loss | 66 | 96 |
| Financial assets measured at amortized cost: | ||
– lease receivables | 56 | 72 |
– other financial receivables | 106 | 93 |
Closing balance, Dec. 31 | 1 663 | 1 394 |
| Current | ||
Financial assets at fair value through profit or loss | 360 | 329 |
| Financial assets measured at amortized cost: | ||
– lease receivables | 17 | 38 |
– other financial receivables | 57 | 598 |
Closing balance, Dec. 31 | 434 | 965 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 128
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
2024 | 2023 | |
Raw materials | 4 896 | 5 020 |
Work in progress | 7 464 | 6 597 |
Semi-finished goods | 7 342 | 7 511 |
Finished goods | 9 310 | 10 155 |
Closing balance, Dec. 31 | 29 012 | 29 283 |
Expected credit losses | 2024 | 2023 |
Opening balance, Jan. 1 | 1 078 | 976 |
Business acquisitions and divestments | 26 | 10 |
Provisions recognized for potential losses | 547 | 467 |
Amounts used for established losses | –174 | –141 |
Release of unnecessary provisions | –240 | –193 |
Translation differences | 59 | –41 |
Closing balance, Dec. 31 | 1 296 | 1 078 |
2024 | 2023 | |
| Derivatives: | ||
– at fair value through profit or loss | 76 | 108 |
| Financial assets measured at amortized cost: | ||
– other receivables | 4 514 | 3 940 |
– contract assets | 6 218 | 5 699 |
Prepaid expenses | 1 514 | 1 294 |
Closing balance, Dec. 31 | 12 322 | 11 041 |
2024 | 2023 | |
Cash | 7 100 | 9 490 |
Cash equivalents | 11 868 | 1 397 |
Closing balance, Dec. 31 | 18 968 | 10 887 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 129
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
2024 | 2023 | |||||
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 | 3 357 576 384 | 1 560 876 032 | 4 918 452 416 |
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 | –47 838 434 | – | –47 838 434 | –47 893 133 | – | –47 893 133 |
Total shares outstanding, Dec. 31 | 3 309 737 950 | 1 560 876 032 | 4 870 613 982 | 3 309 683 251 | 1 560 876 032 | 4 870 559 283 |
Number of shares held by Atlas Copco | Cost value affecting equity | |||||||
Repurchases/Divestment of shares | 2024 | AGM mandate 2024, Apr.–Dec. | AGM mandate 2023, Jan.–Mar. | 2023 | AGM mandate 2023, Apr.–Dec. | AGM mandate 2022, Jan.–Mar. | 2024 | 2023 |
Opening balance, Jan. 1 | 47 893 133 | 50 095 451 | 4 427 | 4 007 | ||||
Repurchase of A shares | 5 030 000 | 5 030 000 | – | 7 785 000 | 6 040 000 | 1 745 000 | 898 | 1 243 |
Divestment of A shares | –5 084 699 | –2 774 958 | –2 309 741 | –9 987 318 | –8 214 129 | –1 773 189 | –470 | –823 |
Closing balance, Dec. 31 | 47 838 434 | 47 893 133 | 4 855 | 4 427 | ||||
Percentage of shares outstanding | 1.0% | 1.0% |
Retained earnings including reserve for fair value | 142 615 979 719 |
Profit for the year | 20 190 711 361 |
| 162 806 691 080 | |
| The Board of Directors proposes that these earnings | |
| be appropriated as follows: | |
To the shareholders, a dividend of SEK 3.00 per share | 14 611 841 946 |
To be retained in the business | 148 194 849 134 |
Total | 162 806 691 080 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 130
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
2024 | 2023 | |||||
| Repurchased | Carrying | Fair | Carrying | Fair | ||
| Maturity | nominal amount | amount | value | amount | value | |
| Non-current | ||||||
Medium Term Note Program MEUR 500 | 2026 | 5 731 | 5 550 | 5 523 | 5 215 | |
Medium Term Note Program MEUR 300 | 2029 | 3 425 | 3 052 | 3 299 | 2 848 | |
Medium Term Note Program MEUR 500 | 2032 | 5 685 | 4 917 | 5 473 | 4 571 | |
Bilateral borrowings EIB MEUR 200 | 2027 | 2 293 | 2 185 | 2 210 | 2 099 | |
Bilateral borrowings EIB MEUR 100 | 2028 | 1 146 | 1 076 | 1 105 | 1 009 | |
Bilateral borrowings EIB MEUR 415 | 2030 | 4 758 | 4 869 | 4 586 | 4 717 | |
Bilateral borrowings EIB MEUR 60 | 2030 | 688 | 704 | 663 | 684 | |
Bilateral borrowings NIB MEUR 183 | 2031 | 2 098 | 2 117 | 2 022 | 2 053 | |
Other bank loans | 696 | 703 | 881 | 850 | ||
| Less current portion of long-term | ||||||
| borrowings | –280 | –280 | –164 | –164 | ||
Total non-current bonds and loans | 26 240 | 24 893 | 25 598 | 23 882 | ||
Lease liabilities | 5 392 | 5 392 | 4 251 | 4 251 | ||
Other financial liabilities | 56 | 56 | 118 | 118 | ||
Total non-current borrowings | 31 688 | 30 341 | 29 967 | 28 251 | ||
| Current | ||||||
Current portion of long-term borrowings | 280 | 280 | 164 | 164 | ||
Short-term loans | 1 034 | 1 034 | 1 087 | 1 087 | ||
Lease liabilities | 1 762 | 1 762 | 1 491 | 1 491 | ||
Total current borrowings | 3 076 | 3 076 | 2 742 | 2 742 | ||
Closing balance, Dec. 31 | 34 764 | 33 417 | 32 709 | 30 993 |
Credit facilities | Nominal amount | Maturity | Utilized | |
| Commercial papers ¹ | ² | MSEK 10 000 | – | – |
Credit-line | MEUR 640 | 2026 | – | |
Credit-line | MEUR 1000 | 2026 | – | |
Equivalent in MSEK | 28 802 | – |
2024 | 2023 | |||||
Currency | Local currency (millions) | MSEK | % | Local currency (millions) | MSEK | % |
EUR | 2 498 | 28 643 | 82 | 2 483 | 27 435 | 84 |
SEK | 607 | 607 | 2 | 641 | 641 | 2 |
USD | 202 | 2 222 | 6 | 151 | 1 508 | 5 |
Others | – | 3 292 | 10 | – | 3 125 | 9 |
Total | 34 764 | 100 | 32 709 | 100 |
Maturity | Fixed | Floating ¹ | Carrying amount | Fair value |
2025 | 2 878 | 198 | 3 076 | 3 076 |
2026 | 7 240 | – | 7 240 | 7 060 |
2027 | 3 431 | – | 3 431 | 3 323 |
2028 | 1 933 | – | 1 933 | 1 862 |
2029 | 3 983 | – | 3 983 | 3 595 |
2030 | 418 | 5 446 | 5 864 | 5 991 |
2031 | 358 | 2 098 | 2 456 | 2 473 |
2032 | 5 946 | 20 | 5 966 | 5 215 |
2033 and after | 642 | 173 | 815 | 822 |
Total | 26 829 | 7 935 | 34 764 | 33 417 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 131
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 and trade payables, continued
2024 | 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 | 25 598 | –242 | – | – | 175 | 11 | 603 | 353 | –258 | 26 240 |
Lease liabilities | 4 251 | – | 1 801 | –98 | 219 | 69 | – | 219 | –1 069 | 5 392 |
Other financial liabilities | 118 | –21 | – | – | 2 | 2 | – | 3 | –48 | 56 |
Total non-current liabilities | 29 967 | –263 | 1 801 | –98 | 396 | 82 | 603 | 575 | –1 375 | 31 688 |
| Current | ||||||||||
Current portion of long-term borrowings | 164 | –404 | – | – | 253 | – | – | 9 | 258 | 280 |
Short-term loans | 1 055 | –253 | – | – | 119 | 5 | – | 51 | 48 | 1 025 |
Lease liabilities | 1 491 | –2 030 ¹ | 1 040 | –93 | 52 | 162 | – | 71 | 1 069 | 1 762 |
Total current liabilities | 2 710 | –2 687 | 1 040 | –93 | 424 | 167 | – | 131 | 1 375 | 3 067 |
Total | 32 677 | –2 950 | 2 841 | –191 | 820 | 249 | 603 | 706 | – | 34 755 |
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 |
| Total outstanding supply chain | ||
financing at the end of the year 2024 | 2023 | |
| Presented within short-term | ||
| borrowings | 445 | 648 |
| – of which suppliers have received | ||
| payment | 416 | 626 |
Presented within trade payables | 3 235 | 4 277 |
| – of which suppliers have received | ||
| payment | 2 840 | 3 969 |
Average range of payment due dates | 2024 | 2023 |
| Short-term borrowings that are part of the | ||
| arrangement | 240–300 | 180–240 |
Comparable short-term borrowings that are not part of an arrangement | 1–60 | 1–60 |
Trade payables that are part of the arrangement | 60–120 | 120–180 |
| Comparable trade payables that are not part | ||
| of an arrangement | 1–60 | 1–60 |
| Changes in supply chain financing | |
| during the year 2024 | |
Opening balance, Jan. 1 | 4 925 |
Cash changes during the year | –2 517 |
Non cash changes during the year ¹ | 1 112 |
Translation differences | 160 |
Closing balance, Dec. 31 | 3 680 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 132
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, 2024 | Buildings and land | Machinery and equipment | Rental equipment | Total |
| Cost | ||||
Opening balance, Jan. 1 | 7 563 | 2 496 | 10 | 10 069 |
Additions | 1 644 | 1 208 | – | 2 852 |
Business acquisitions | 249 | 22 | – | 271 |
Deductions | –447 | –543 | –11 | –1 001 |
Reclassifications | –34 | –6 | 5 | –35 |
Translation differences | 378 | 125 | – | 503 |
Closing balance, Dec. 31 | 9 353 | 3 302 | 4 | 12 659 |
| Depreciation and impairment losses | ||||
Opening balance, Jan. 1 | 3 102 | 1 197 | 7 | 4 306 |
Depreciation and impairment for the period | 1 133 | 720 | 2 | 1 855 |
Deductions | –315 | –486 | –11 | –812 |
Reclassifications | –31 | –6 | 5 | –32 |
Translation differences | 150 | 59 | – | 209 |
Closing balance, Dec. 31 | 4 039 | 1 484 | 3 | 5 526 |
Carrying amounts, Jan. 1 | 4 461 | 1 299 | 3 | 5 763 |
Carrying amounts, Dec. 31 | 5 314 | 1 818 | 1 | 7 133 |
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 |
Leasing in income statement | 2024 | 2023 |
| Depreciation and impairment expense on | ||
| right-of-use assets | –1 855 | –1 639 |
Interest expense on lease liabilities | –233 | –171 |
Expense relating to leases of low value assets | –92 | –83 |
Expense relating to short-term leases | –164 | –191 |
Expense relating to variable lease payments | –18 | –19 |
Income from subleasing right-of-use assets | 2 | 8 |
| Gains or losses from sale and leaseback | ||
| transactions | – | –1 |
Total amount recognized in profit or loss | –2 360 | –2 096 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 133
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
2024 | 2023 | |||
| Present value of | Present value of | |||
| Gross investment | minimum lease payments | Gross investment | minimum lease payments | |
Less than one year | 20 | 17 | 42 | 38 |
Between one and five years | 50 | 41 | 65 | 56 |
More than five years | 10 | 8 | 8 | 7 |
Total | 80 | 66 | 115 | 101 |
Unearned finance income | – | 7 | – | 5 |
Unguaranteed residual value | – | 7 | – | 9 |
Total | 80 | 80 | 115 | 115 |
2024 | 2023 | |
Less than one year | 115 | 160 |
Between one and five years | 177 | 349 |
More than five years | 18 | 67 |
Total | 310 | 576 |
FINANCIAL STATEMENTS – NOTES
Atlas Copco Group 2024 134
2024 | 2023 | |
Financial assets (note 14) | –1 432 | –1 132 |
Post-employment benefits | 2 740 | 2 584 |
Other provisions (note 24) | 151 | 122 |
Closing balance, net | 1 459 | 1 574 |
| Post-employment benefits | |||||
2024 | Funded pension plans | Unfunded pension plans | Other funded plans | Other unfunded plans | Total |
Present value of defined benefit obligations | 8 996 | 1 463 | 93 | 331 | 10 883 |
Fair value of plan assets | –9 507 | – | –119 | – | –9 626 |
Present value of net obligations | –511 | 1 463 | –26 | 331 | 1 257 |
Effect of asset ceiling | 164 | – | – | – | 164 |
Other long-term service obligations | – | – | 38 | – | 38 |
Net amount recognized in the balance sheet | –347 | 1 463 | 12 | 331 | 1 459 |
| Post-employment benefits | |||||
2023 | Funded pension 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 |
| Plan assets consist of | 2024 | |||
| the following: | ||||
Quoted market price | Unquoted market price | Total | 2023 | |
Debt instruments | 1 268 | 366 | 1 634 | 1 216 |
Equity instruments | 880 | 344 | 1 224 | 1 323 |
Property | 1 386 | 340 | 1 726 | 1 501 |
Assets held by insurance companies | 130 | 1 777 | 1 907 | 1 721 |
Cash | 696 | – | 696 | 485 |
Investment funds | 830 | 663 | 1 493 | 1 361 |
Derivatives | 500 | 13 | 513 | 506 |
Others | 36 | 397 | 433 | 562 |
Closing balance, Dec. 31 | 5 726 | 3 900 | 9 626 | 8 675 |
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 2024 135
0
2 000
4 000
6 000
8 000
10 000
20232024
MSEK
Europe
North America
Asia
Rest of the world
0
2 000
4 000
6 000
8 000
10 000
20232024
MSEK
Europe
North America
Asia
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 | 2024 | 2023 |
Fair value of plan assets at Jan. 1 | 8 675 | 8 837 |
Business acquisitions | 4 | 10 |
Interest income | 327 | 352 |
Remeasurement – return on plan assets | 398 | –372 |
Settlements | –9 | –33 |
Employer contributions | 213 | 222 |
Plan members contributions | 21 | 20 |
| Administrative expenses | –18 | –17 |
Benefit paid by the plan | –366 | –336 |
Translation differences | 381 | –8 |
Fair value of plan assets, Dec. 31 | 9 626 | 8 675 |
| The plan assets are allocated among the | ||
following geographic areas: | 2024 | 2023 |
Europe | 8 356 | 7 540 |
North America | 668 | 559 |
Asia | 602 | 576 |
Total | 9 626 | 8 675 |
Asset ceiling | 2024 | 2023 |
Asset ceiling at Jan. 1 | 101 | 175 |
Interests | 2 | 4 |
Remeasurements – asset ceiling | 58 | –85 |
Translation differences | 3 | 7 |
Asset ceiling, Dec. 31 | 164 | 101 |
| Movements in present value of the obligations | ||
for defined benefits | 2024 | 2023 |
Defined benefit obligations at Jan. 1 | 10 119 | 9 667 |
Current service cost | 359 | 308 |
Past service cost | 25 | 1 |
Interest expense (+) | 388 | 375 |
Actuarial gains (–)/ losses (+) arising from experience adjustments | 274 | 333 |
Actuarial gains (–)/ losses (+) arising from financial assumptions | –116 | 239 |
Actuarial gains (–)/ losses (+) arising from demographic assumptions | –21 | –85 |
Business acquisitions | 102 | 41 |
| Settlements | –9 | –37 |
Benefits paid from plan or company assets | –690 | –655 |
Translation differences | 452 | –68 |
Defined benefit obligations, Dec. 31 | 10 883 | 10 119 |
Remeasurements recognized in other comprehensive income amounted to
218 (–753) and 15 (21) in profit and loss. The Group expects to pay 542 (476)
in contributions to defined benefit plans in 2024.
Expenses recognized in the income statement | 2024 | 2023 |
Current service cost | 359 | 308 |
Past service cost | 25 | 1 |
Net interest cost | 61 | 23 |
Employee contribution/ participant contribution | –21 | –20 |
Remeasurement of other long-term benefits | 14 | 21 |
Administrative expenses | 18 | 17 |
Total | 456 | 350 |
The total benefit expense for defined benefit plans amounted to 456 (350),
whereof 395 (327) have been charged to operating expenses and 61 (23)
to financial expenses. Expenses related to defined contribution plans
amounted to 1 544 (1 471).
| Principal actuarial assumptions at the balance sheet | ||
date (expressed as weighted averages in %) | 2024 | 2023 |
| Discount rate | ||
Europe | 3.52 | 3.51 |
North America | 5.41 | 5.14 |
Asia | 4.60 | 4.78 |
| Future salary increases | ||
Europe | 2.66 | 2.56 |
North America | 5.00 | 5.00 |
Asia | 5.91 | 5.57 |
| Medical cost trend rate | ||
North America | 4.50 | 4.50 |
Sensitivity analysis | Europe | North America | Asia |
Change in discount rate +0.5% | –546 | –23 | –42 |
Change in discount rate –0.5% | 585 | 25 | 44 |
Increase in life expectancy, +1 year | 260 | 16 | – |
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 2024 136
22. Employee benefits, continued
Share value based incentive programs
The purpose of the share value based incentive programs is to strengthen
the alignment of interest of the Group’s key employees with those of the
shareholders and thus create an interest in a good value development of the
shares of the Company and to align performance in a manner that enhances
such development. The purpose is also to facilitate recruitment and reten-
tion of key employees with the right mindset and competences.
As described more in detail below, in 2024 the Group has implemented
a performance-based employee stock option plan which is directed at a
maximum 500 key employees. Participation in the plan is based on position,
qualification and individual performance and the nominated employees are
divided into four categories, with different amounts of maximum allotment
of options. The allotment of options will take place in March 2025 and varies
linear from zero to 100% depending on the value creation in the Group
during 2024. The exercise prices will be determined in February 2025 and
since the exercise price of stock options is set with a premium, there is no
economic value for the key employee unless the shareholder value increases
during the vesting period. Subject to continued employment, the options are
exercisable earliest three years from granting and exercise is only possible
when the market price is higher than the exercise price thus promoting a
focus on the Group’s sustained growth.
Since the Board believes that it is of particular importance to the sharehold-
ers that Group Management and division president have a long-term inter-
est in the good value development of the share of the company, there is a
prerequisite for this group to invest in Atlas Copco AB shares to participate in
the performance-based employee stock option plan. Those who invest will
get, in addition to proportional participation in the stock option plan, one
matching option for each share invested under the plan. Subject to contin-
ued employment and continued ownership of the invested shares during the
vesting period, the matching options are exercisable earliest three years
from granting. Consequently, and subject to continued employment, there is
a prerequisite for Group Management and division president to always hold
invested shares under three consecutive plans.
Performance-based employee stock option plan 2017–2023
In 2017–2023, the Annual General Meeting decided on performance-based
employee stock option plans based on a proposal from the Board for the
respective years. The terms and conditions of these plans are in all material
aspects similar to the terms and conditions of the performance-based
employee stock option plan for 2024 in the Group, as described below. The
performance criteria of the performance-based employee stock option plan
which expired in 2024 was met at the level of 100%.
Performance-based employee stock option plan 2024
At the Annual General Meeting 2024, it was decided to implement a perfor-
mance-based employee stock option plan for 2024, which is similar in struc-
ture to the previous stock option plans approved by the Annual General
Meeting. The plan is directed at a maximum 500 key employees in Atlas
Copco Group who will have the possibility to acquire a maximum of
7 909 235 series A shares in Atlas Copco AB. The allotment of options is
dependent on the value increase of the Group, measured as Economic Value
Added (EVA, defined as the sum of adjusted operating profit and interest
income less tax expenses and cost of capital) during 2024. In an interval of
SEK 5 500 000 000, the allotment varies linear from zero to 100% of the maxi-
mum number of options. Participation in the plan is based on position, quali-
fications and individual performance and the nominated employees are
divided into four categories, with different amounts of maximum allotment
of options. The size of the plan and the limits of the interval have been estab-
lished by the Board and have been approved by the Annual General Meeting
and are compatible with the long-term business plan of the Group.
In connection to the allotment, which will take place no later than March
20, 2025, the exercise price shall be set to an amount corresponding to 110%
of the average of the closing rates on Nasdaq Stockholm of Atlas Copco AB
series A shares during a period of ten business days next following the date
Performance-based employee stock option plan 2024
Participation in the plan is based on position, qualification and individual performance
Annual General Meeting Information of grant
Group Management´s and division
presidents’ own investments Exercise price set Allotment of options Plan expires
Vesting period Performance stock options and matching options exercisable
January 2024 April 2024 May 2024 June 2024 December 2024 February 2025 March 2025 May 1, 2027 April 30, 2031
0
50
100
150
200
250
0
20
40
60
80
100
120
140
160
180
200
Dec. 2023Jan 2016
Jan. 2017 Dec. 2024
Share price development 2017–2024
The performance period is in reality extended
Value creation in the Group, measured as Economic Value Added (EVA) Stock options are allotted at a premium after the performance
period. There is no economic value for the employee unless the
shareholder value increases during the vesting period.
Exercise 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.
2021 2022 2023 2024 2025 2026 2027
Stock option plan 2024:
Own investment required Exercisable
Stock option plan 2023:
Own investment required Exercisable
Stock option plan 2022:
Own investment required Exercisable
Stock option plan 2021:
Own investment required Exercisable
Own investment for Group Management and division presidents
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 2024 137
2024 | Program | 2023 | Program | |
| Key assumptions | (Dec. 31, 2024) | (at date of allotment) | ||
Expected exercise price | SEK 186/127 ¹ | SEK 184/126 ¹ ² | ||
Expected volatility | 30% | 30% | ||
Expected options life (years) | 4.3 | 4.1 | ||
Expected share price | SEK 168.85 | SEK 171.17 | ||
Expected dividend (growth) | SEK 2.96 | (6%) | SEK 2.8 | (6%) |
Risk free interest rate | 2.1% | 2.5% | ||
Expected average grant value | SEK 33.17/54.81 | SEK 41.69/65.95 | ||
Maximum number of options | 7 909 235 | 10 302 190 | ||
– of which forfeited ³ | –117 435 | –165 828 | ||
Number of matching options | 79 888 | 96 829 | ||
22. Employee benefits, continued
For the stock options in the 2018–2024 programs, the fair value is recognized
as an expense over the following vesting periods:
Program | Vesting period | Exercise period | ||
Stock options | From | To | From | To |
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 |
2024 | May 2024 | April 2027 | May 2027 | April 2031 |
¹ No allotment of stock options as the EVA target for the Group was not met.
For the 2024 program, a new valuation of the fair value has been made
and will be made at each reporting date until the date of allotment.
For share appreciation rights and stock options classified as cash-settled,
the fair value is recognized as an expense over the same vesting period; the
fair value is, however, remeasured at each reporting date and changes in the
fair value after the end of the vesting period continue to be recognized as a
personnel expense.
In accordance with IFRS 2, the expense in 2024 for all share-based incen-
tive programs, excluding social costs, amounted to 304 (370) of which 253
(165) refer to equity-settled options. The related costs for social security
contributions are accounted for in accordance with the statement from the
Swedish Financial Reporting Board (UFR 7) and are classified as personnel
expenses.
In the balance sheet, the provision for share appreciation rights and stock
options classified as cash-settled as of December 31 amounted to 200 (263).
Atlas Copco Group shares are held by the Parent Company in order to cover
commitments under the programs 2018–2024, see also note 19.
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 2024 138
22. Employee benefits, continued
| Summary of share value based incentive programs | |||||||
| Fair value | |||||||
| Initial number | Initial number | Expiration | Exercise | Type of | at date of | Intrinsic value | |
| Program | of employees | of options | date | price, SEK | share | allotment | for vested SARs |
| Stock options | |||||||
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 | – |
2023 | 408 | 8 586 457 | Apr. 30, 30 | 184.00 | A | 41.69 | – |
| Matching options | |||||||
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 | – |
2023 | 31 | 96 829 | Apr. 30, 30 | 126.00 | A | 65.95 | – |
| Share appreciation rights | |||||||
2017 | 61 | 2 473 914 | Apr. 30, 24 | 70.37 | A | – | 98.48 |
2018 | 57 | 1 769 052 | Apr. 30, 25 | 64.77 | A | – | 104.08 |
2019 | 62 | 2 659 552 | Apr. 30, 26 | 96.42 | A | – | 72.43 |
2021 | 44 | 855 181 | Apr. 30, 28 | 144.76 | A | – | 24.09 |
2022 | 77 | 1 285 040 | Apr. 30, 29 | 139.00 | A | – | – |
2023 | 87 | 1 549 905 | Apr. 30, 30 | 184.00 | A | – | – |
| Number of options/rights 2024 ¹ | Average stock | |||||||
| Conversion | Time to | price for | ||||||
| Outstanding | options/ | Expired/ | Outstanding | –of which | expiration, | exercised | ||
| Program | Jan. 1 | rights ² | Exercised | forfeited | Dec. 31 | exercisable | in months | options, SEK |
| Stock options | ||||||||
2017 | 700 235 | –39 904 | 660 331 | – | – | – | – | 170 |
2018 | 3 377 604 | –78 105 | 1 589 713 | – | 1 709 786 | 1 709 786 | 4 | 186 |
2019 | 8 458 016 | –171 584 | 2 009 979 | – | 6 276 453 | 6 276 453 | 16 | 186 |
2021 | 6 581 245 | –112 464 | 787 985 | 37 488 | 5 643 308 | 5 643 308 | 40 | 194 |
2022 | 7 859 084 | –144 000 | – | 160 000 | 7 555 084 | – | 52 | – |
2023 | 8 586 457 | – | – | 34 950 | 8 551 507 | – | 64 | – |
| Matching options | ||||||||
2017 | 7 001 | – | 7 001 | – | – | – | – | 175 |
2018 | 54 167 | – | 14 980 | – | 39 187 | 39 187 | 4 | 186 |
2019 | 60 107 | – | 10 672 | – | 49 435 | 49 435 | 16 | 193 |
2020 | 86 652 | – | 3 582 | – | 83 070 | 83 070 | 28 | 195 |
2021 | 90 461 | – | 5 817 | – | 84 644 | 84 644 | 40 | 195 |
2022 | 84 644 | – | – | – | 84 644 | – | 52 | – |
2023 | 96 829 | – | – | – | 96 829 | – | 64 | – |
| Share appreciation rights | ||||||||
2017 | 369 755 | 39 904 | 409 659 | – | – | – | – | 176 |
2018 | 484 143 | 78 105 | 305 915 | – | 256 333 | 256 333 | 4 | 181 |
2019 | 1 010 518 | 171 584 | 302 953 | – | 879 149 | 879 149 | 16 | 183 |
2021 | 836 437 | 112 464 | 179 196 | 37 488 | 732 217 | 732 217 | 40 | 194 |
2022 | 1 269 040 | 144 000 | – | 80 000 | 1 333 040 | – | 52 | – |
2023 | 1 549 905 | – | – | 69 900 | 1 480 005 | – | 64 | – |
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 2024 139
22. Employee benefits, continued
| Number of options/rights 2023 ¹ | ||||||||
| Time to | Average stock | |||||||
| Outstanding | Expired/ | Outstanding | –of which | expiration, | price for exercised | |||
| Program | Jan. 1 | Allotted | 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 | – |
2023 | – | 8 586 457 | – | – | 8 586 457 | – | 76 | – |
| 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 | – |
2023 | – | 96 829 | – | – | 96 829 | – | 76 | – |
| 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 | – |
2023 | – | 1 549 905 | – | – | 1 549 905 | – | 76 | – |
¹ All numbers have been adjusted for the effect of the distribution of Epiroc and the redemption in 2018 and the share split and
redemption in 2022 in line with the method used by NASDAQ Stockholm to adjust exchange-traded options contracts.
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 2024 140
Other current liabilities | 2024 | 2023 |
| Derivatives: | ||
– at fair value through profit and loss | 94 | 721 |
| Other financial liabilities: | ||
– other liabilities | 3 399 | 3 062 |
– accrued expenses | 12 632 | 11 052 |
Prepaid income other Contract liabilities: | 309 | 59 |
– advances from customers | 9 780 | 9 241 |
– deferred revenues construction contracts | 1 135 | 901 |
– deferred revenues service contracts | 2 990 | 2 730 |
Closing balance, Dec. 31 | 30 339 | 27 766 |
| Product | ||||
| 2024 | warranty | Restruc turing | Other | Total |
Opening balance, Jan. 1 | 1 700 | 139 | 2 452 | 4 291 |
| During the year: | ||||
– provisions made | 1 586 | 323 | 346 | 2 255 |
– provisions used | –1 182 | –124 | –508 | –1 814 |
| – provisions reversed | –275 | –8 | –249 | –532 |
Business acquisitions | 22 | – | 27 | 49 |
Translation differences | 88 | 6 | 49 | 143 |
Closing balance, Dec. 31 | 1 939 | 336 | 2 117 | 4 392 |
Non-current | 297 | 32 | 1 314 | 1 643 |
Current | 1 642 | 304 | 803 | 2 749 |
Total | 1 939 | 336 | 2 117 | 4 392 |
| 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 |
| Maturity | Product | |||
| 2024 | warranty | Restruc turing | Other | Total |
Less than one year | 1 642 | 304 | 803 | 2 749 |
Between one and five years | 287 | 24 | 903 | 1 214 |
More than five years | 10 | 8 | 411 | 429 |
Total | 1 939 | 336 | 2 117 | 4 392 |
| Assets pledged for debts to credit | ||
institutions and other commitments | 2024 | 2023 |
Inventory and property, plant and equipment | 62 | 20 |
Endowment insurances | 209 | 205 |
Total | 271 | 225 |
Contingent liabilities | 2024 | 2023 |
Notes discounted | 18 | 13 |
Sureties and other contingent liabilities | 221 | 287 |
Total | 239 | 300 |
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 2024 141
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 | 2024 | 2023 |
Committed credit facilities | 18 802 | 18 124 |
Cash and cash equivalents | 18 968 | 10 887 |
Average tenor, years | 4.7 | 5.7 |
Current external debt | 280 | 164 |
Financial instruments | Up to 1 year | 1–3 years | 4–5 years | Over 5 years |
Bonds and loans | – | 8 840 | 5 298 | 13 832 |
Lease liabilities | – | 2 604 | 1 310 | 1 669 |
Other financial liabilities | – | 30 | 22 | 4 |
Other liabilities | – | 227 | 21 | 10 |
Non-current financial liabilities | – | 11 701 | 6 651 | 15 515 |
Bonds and loans | 1 431 | – | – | – |
Lease liabilities | 1 810 | – | – | – |
Current portion of interest-bearing liabilities | 280 | – | – | – |
Derivatives | 94 | – | – | – |
Other accrued expenses | 12 632 | – | – | – |
Trade payables | 16 788 | – | – | – |
Other liabilities | 3 399 | – | – | – |
Current financial liabilities | 36 434 | – | – | – |
Financial liabilities | 36 434 | 11 701 | 6 651 | 15 515 |
SEK
0
1
2
3
4
5
6
7
20242202320222021202020192018201720162015
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
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 2024 142
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
OtherUSDSEKMXNKRWINRIDRGBPEURCZKCNYBRLAUDAED
MSEK
2024
–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
OtherUSDSEKMXNKRWINRIDRGBPEURCZKCNYBRLAUDAED
MSEK
2024
–25 000
–20 000
–15 000
–10 000
–5 000
0
5 000
10 000
15 000
20 000
25 000
OtherZARUSDSEKKRWINRIDRGBPEURCZKCNYCADBRLAUD
MSEK
2023
* Without adjustments for onetime effects.
Transaction exposure
26. Financial exposure and principles for control of financial risks, continued
Interest risk | 2024 | 2023 |
Effective interest rate on bonds and loans | 1.4% | 1.6% |
Effective interest rate on lease liabilities | 3.3% | 3.0% |
Duration (months) | 37 | 45 |
Transaction exposure sensitivity | 2024 | 2023 |
SEK exchange rate + 5% | –314 | –323 |
USD exchange rate + 5% | 1 269 | 1 157 |
EUR exchange rate + 5% | –993 | –1 075 |
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 2024 143
–5
–4
–3
–2
–1
0
1
2
3
4
5
-1795
-1436
-1077
-718
-35903597181077
1436
1795
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, %
–1 795
–1 436
–1 077
–718
0
–359
718
1 077
1 436
1 795
359
GRAPH 2
Translation effect on
profit before tax
26. Financial exposure and principles for control of financial risks, continued
| Outstanding | 2024 | 2023 | ||
| financial | ||||
| instru ments | ||||
| related | ||||
| to trans lation | Nominal | Nominal | ||
| exposure | Effect in OCI | amount | Effect in OCI | amount |
Loans in EUR ¹ | MSEK –1 013 | MEUR 1 458 | MSEK –534 | MEUR 1 458 |
Credit risk | 2024 | 2023 |
| Receivables at amortized cost: | ||
– trade receivables | 33 834 | 32 708 |
– lease receivables | 73 | 110 |
– other financial receivables | 163 | 691 |
– other receivables | 3 508 | 3 029 |
– contract assets | 6 218 | 5 699 |
– cash and cash equivalents | 18 968 | 10 887 |
Financial assets at fair value through OCI | 1 | 1 |
Financial assets at fair value through profit or loss | 426 | 425 |
Derivatives | 78 | 108 |
Total | 63 269 | 53 658 |
2024 | 2023 | |||
| Trade receivables | Gross | Impairment | Gross | Impairment |
Not past due | 26 264 | 4 | 25 591 | 1 |
Past due but not individually impaired | ||||
0–30 days | 3 774 | – | 3 424 | – |
31–60 days | 1 507 | – | 1 463 | – |
61–90 days | 740 | – | 730 | – |
More than 90 days | 2 320 | – | 2 220 | – |
Past due and individually impaired | ||||
0–30 days | 13 | 5 | 2 | 1 |
31–60 days | 3 | 3 | 3 | 2 |
61–90 days | 63 | 7 | 14 | 7 |
More than 90 days | 446 | 398 | 339 | 315 |
Collective impairment | – | 879 | – | 752 |
Total | 35 130 | 1 296 | 33 786 | 1 078 |
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 2024 144
26. Financial exposure and principles for control of financial risks, continued
| Outstanding derivative instruments | ||
2024 | 2023 | |
Assets | 78 | 108 |
Liabilities | 94 | 721 |
| Outstanding net position for derivative instruments | ||||||
| Offset in | Net in | Master | ||||
| balance | balance | netting | Cash | Net | ||
| Gross | sheet | sheet | agreement | collateral | position | |
| Assets | ||||||
Derivatives | 78 | – | 78 | –94 | 33 | 17 |
| Liabilities | ||||||
Derivatives | 94 | – | 94 | –94 | – | – |
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 2024 145
26. Financial exposure and principles for control of financial risks, continued
| Financial instruments by | 2024 | 2023 | ||||||
| fair value hierarchy | Fair value | Level 1 | Level 2 | Level 3 | Fair value | Level 1 | Level 2 | Level 3 |
Financial assets | 229 | 66 | 163 | – | 262 | 96 | 166 | – |
Other receivables | 17 | – | 17 | – | 28 | – | 28 | – |
Derivatives | 2 | – | 2 | – | – | – | – | – |
Non-current financial assets | 248 | 66 | 182 | – | 290 | 96 | 194 | – |
Trade receivables | 33 817 | – | 33 817 | – | 32 680 | – | 32 680 | – |
Financial assets | 434 | 361 | 73 | – | 965 | – | 965 | – |
Other receivables | 3 508 | – | 3 508 | – | 3 029 | – | 3 029 | – |
Derivatives | 76 | – | 76 | – | 108 | – | 108 | – |
Contract assets | 6 218 | – | 6 218 | – | 5 699 | – | 5 699 | – |
Current financial assets | 44 053 | 361 | 43 692 | – | 42 481 | – | 42 481 | – |
Financial assets | 44 301 | 427 | 43 874 | – | 42 771 | 96 | 42 675 | – |
Bonds and loans | 24 893 | 13 519 | 11 374 | – | 23 913 | 12 634 | 11 279 | – |
Other financial liabilities | 56 | – | 56 | – | 118 | – | 118 | – |
Other liabilities | 258 | – | 168 | 90 | 225 | – | 148 | 77 |
Non-current financial liabilities | 25 207 | 13 519 | 11 598 | 90 | 24 256 | 12 634 | 11 545 | 77 |
Current portion of long-term loans | 280 | – | 280 | – | 164 | – | 164 | – |
Short-term loans | 1 034 | – | 1 034 | – | 1 087 | – | 1 087 | – |
Derivatives | 94 | – | 94 | – | 721 | – | 721 | – |
Other accrued expenses | 12 632 | – | 12 632 | – | 11 052 | – | 11 052 | – |
Trade payables | 16 788 | – | 16 788 | – | 17 792 | – | 17 792 | – |
Other liabilities | 3 399 | – | 3 235 | 164 | 3 062 | – | 3 008 | 54 |
Current financial liabilities | 34 227 | – | 34 063 | 164 | 33 878 | – | 33 824 | 54 |
Financial liabilities | 59 434 | 13 519 | 45 661 | 254 | 58 134 | 12 634 | 45 369 | 131 |
| 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 2024 | 131 | 132 | –27 | 9 | –1 | 10 | 254 | –8 |
Year-end rate | Average rate | |||||
Currency rates used in the financial statements | Value | Code | 2024 | 2023 | 2024 | 2023 |
Canada | 1 | CAD | 7.64 | 7.54 | 7.70 | 7.83 |
China | 1 | CNY | 1.51 | 1.41 | 1.47 | 1.49 |
EU | 1 | EUR | 11.46 | 11.05 | 11.41 | 11.44 |
India | 1 | INR | 0.13 | 0.12 | 0.13 | 0.13 |
South Korea | 1 000 | KRW | 7.46 | 7.75 | 7.75 | 8.10 |
United Kingdom | 1 | GBP | 13.83 | 12.73 | 13.49 | 13.15 |
U.S.A. | 1 | USD | 10.99 | 9.98 | 10.55 | 10.57 |
2024 | 2023 | |
Revenues | 36 | 29 |
Goods purchased | 21 | 22 |
Service purchased | 151 | 141 |
| At Dec. 31: | ||
Trade receivables | 20 | 20 |
Trade payables | 17 | 23 |
Lease liabilities | 534 | 536 |
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 2024 146
FINANCIAL STATEMENTS
Financial statements, Parent Company
Income statement
For the year ended December 31
Amounts in MSEK Note 2024 2023
Administrative expenses A2 –915 –932
Other operating income A3 537 476
Operating loss –378 –456
Financial income A4 19 115 9 935
Financial expenses A4 –1 048 –1 241
Profit after financial items 17 689 8 238
Appropriations A5 2 910 3 383
Profit before tax 20 599 11 621
Income tax A6 –408 –247
Profit for the year 20 191 11 374
Statement of comprehensive income
For the year ended December 31
Amounts in MSEK Note 2024 2023
Profit for the year 20 191 11 374
Other comprehensive income
for the year
– –
Total comprehensive income
for the year
20 191 11 374
Balance sheet
As at December 31
Amounts in MSEK Note 2024 2023
ASSETS
Non-current assets
Intangible assets A7 2 4
Tangible assets A8 37 29
Financial assets:
Deferred tax assets A9 112 121
Shares in Group companies A10, A21 198 415 192 460
Other financial assets A11 279 271
Total non-current assets 198 845 192 885
Current assets
Income tax receivables 442 553
Other receivables A12 5 387 4 612
Cash and cash equivalents A13 – –
Total current assets 5 829 5 165
TOTAL ASSETS 204 674 198 050
As at December 31
Amounts in MSEK Note 2024 2023
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 143 796 146 250
Profit for the year 20 191 11 374
Total non-restricted equity 162 807 156 444
TOTAL EQUITY 168 592 162 229
PROVISIONS
Post-employment benefits A15 213 209
Other provisions A16 524 651
Total provisions 737 860
LIABILITIES
Non-current liabilities
Borrowings A17 35 002 34 605
Total non-current liabilities 35 002 34 605
Current liabilities
Other liabilities A18 343 356
Total current liabilities 343 356
TOTAL EQUITY AND LIABILITIES 204 674 198 050
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
Atlas Copco Group 2024 147
FINANCIAL STATEMENTS
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, 2024 4 870 559 283 786 4 999 –1 180 157 624 162 229
Total comprehensive income for the year – – – – 20 191 20 191
Ordinary dividend – – – – –13 647 –13 647
Acquisition series A shares –5 030 000 – – – –898 –898
Divestment series A shares
5 084 699 –
– –
943
943
Share-based payment, equity settled:
– expense during the year – – – – 245 245
– exercise of options – – – – –471 –471
Closing balance, Dec. 31, 2024
4 870 613 982 786 4 999 –1 180 163 987 168 592
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
See note A14 for additional information.
Statement of cash flows
For the year ended December 31, MSEK 2024 2023
Cash flows from operating activities
Operating loss –378 –456
Adjustments for:
Depreciation 8 10
Capital gain/loss and other non-cash items –481 –775
Operating cash deficit –851 –1 221
Net financial items received 18 056 7 783
Group contributions received 3 383 2 946
Taxes paid –294 –356
Cash flow before change in working capital 20 294 9 152
Change in
Operating receivables –1 238 304
Operating liabilities –12 –18
Change in working capital –1 250 286
Net cash from operating activities 19 044 9 438
For the year ended December 31, MSEK 2024 2023
Cash flow from investing activities
Investments in tangible assets –14 –2
Investments in subsidiaries –5 824 –12 146
Net cash from investing activities –5 838 –12 148
Cash flow from financing activities
Dividends paid –13 647 –11 203
Repurchase and divestment of own shares 45 265
Change in interest-bearing liabilities 396 13 648
Net cash from financing activities –13 206 2 710
Net cash flow for the year – –
Cash and cash equivalents, Jan. 1 – –
Net cash flow for the year – –
Cash and cash equivalents, Dec. 31 – –
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 2024 148
FINANCIAL STATEMENTS – NOTES
Notes to the Parent Company financial statements
MSEK unless otherwise stated
A1. Material 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 Corporate Reporting Board. In accordance with RFR 2, parent
companies that issue consolidated financial statements according to Inter-
national Financial Reporting Standards (IFRS Accounting Standards), as
endorsed by the European Union, shall present their financial statements in
accordance with IFRS Accounting Standards, to the extent these accounting
principles comply with the Swedish Annual Accounts Act and may use exemp-
tions from IFRS Accounting Standards 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
pages 108–109.
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. RFR 2 include an
exception to IFRS 16, allowing all lease contracts to be accounted for as oper-
ational leases.
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
Atlas Copco Group 2024 149
FINANCIAL STATEMENTS – NOTES
A2. Employees and personnel expenses and remuneration to auditors
Average number of employees 2024 2023
Women Men Total Women Men Total
Sweden 85 41 126 78 41 119
Women in Atlas Copco Board and Management, % Dec. 31, 2024 Dec. 31, 2023
Board of Directors excl. employee representatives 44 38
Group Management 30 33
Salaries and other remunerations 2024 2023
Board members and Group Management ¹ Other employees Board members and Group Management ¹ Other employees
Sweden 125 157 107 164
of which variable compensation 21 22
¹ Includes 9 (8) board members who receive fees from Atlas Copco AB as well as the President and CEO and 6 (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 2024 2023
Contractual pension benefits for Board members and Group Management 12 12
Contractual pension benefits for other employees 27 25
Other social costs 87 102
Total 126 139
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:
2024 2023
Ernst & Young
– audit fee 6 6
– other services 2 1
Total 8 7
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.
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 2025.
A3. Other operating income and expense
2024 2023
Commissions received 492 413
Exchange-rate differences, net 2 5
Other operating income 43 58
Total other operating income 537 476
A4. Financial income and expenses
Financial income and expenses 2024 2023
Interest income:
– cash and cash equivalents 10 9
– receivables from Group companies 173 184
Dividend income from Group companies 18 917 9 739
Change in fair value:
– other assets 15 3
Financial income 19 115 9 935
Interest expense:
– borrowings –366 –328
– liabilities to Group companies –682 –309
Capital loss – –7
Change in fair value:
– other liabilities – –
Foreign exchange loss, net – –4
Impairment loss:
– shares in Group companies – –593
Financial expenses –1 048 –1 241
Financial income, net 18 067 8 694
Following table presents the net gain or loss by category of financial
instruments.
Net gain/loss on 2024 2023
– loans and receivables, incl. bank deposits –183 –139
– other assets 15 3
– other liabilities –682 –316
Profit from shares in Group companies 18 917 9 146
Total 18 067 8 694
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.
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 2024 150
FINANCIAL STATEMENTS – NOTES
A5. Appropriations
2024 2023
Group contributions paid – –
Group contributions received 2 910 3 383
Total 2 910 3 383
A6. Income tax
2024 2023
Current tax –408 –282
Deferred tax – 35
Total –408 –247
Profit before taxes 20 599 11 621
The Swedish corporate tax rate, % 20.6 20.6
National tax based on profit before taxes –4 243 –2 394
Tax effects of:
– non-deductible expenses –24 –151
– tax exempt income 3 903 2 018
– deductible expenses, not recognized in
Income statement
22 289
– tax financial net –16 –
– controlled foreign company taxation –40 –20
– adjustments from prior years –10 11
Total –408 –247
Effective tax in % 2.0 2.1
The Parent Company’s effective tax rate of 2.0% (2.1) is primarily affected by
non-taxable income such as dividends from Group companies.
A7. Intangible assets
Capitalized expenditures
for computer programs
2024 2023
Accumulated cost
Opening balance, Jan. 1 34 34
Closing balance, Dec. 31 34 34
Accumulated depreciation
Opening balance, Jan. 1
30 26
Depreciation for the year 2 4
Closing balance, Dec. 31 32 30
Carrying amount
Opening balance, Jan. 1
4 8
Closing balance, Dec. 31 2 4
A8. Property, plant and equipment
2024 2023
Buildings and land Machinery and equipment Total Buildings and land Machinery and equipment Total
Accumulated cost
Opening balance, Jan. 1 49 60 109 48 60 108
Investments 7 7 14 1 1 2
Disposals – – – – –1 –1
Closing balance, Dec. 31 56 67 123 49 60 109
Accumulated depreciation
Opening balance, Jan. 1 26 54 80 22 53 75
Depreciation for the year 3 3 6 4 2 6
Disposals – – – – –1 –1
Closing balance, Dec. 31 29 57 86 26 54 80
Carrying amount
Opening balance, Jan. 1 23 6 29 26 7 33
Closing balance, Dec. 31 27 10 37 23 6 29
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 74 (69). Future payments for non-cancelable leasing con-
tracts amounted to 543 (570) and fall due as follows in the table beside.
2024 2023
Less than one year 67 71
Between one and five years 258 248
More than five years 218 251
Total 543 570
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 2024 151
FINANCIAL STATEMENTS – NOTES
A9. Deferred tax assets and liabilities
2024 2023
Assets Liabi lities
Net
balance Assets Liabi lities
Net
balance
Post-employment
benefits
44 – 44 43 – 43
Other provisions 68 – 68 78 – 78
Total 112 – 112 121 – 121
The following reconciles the net balance of deferred taxes at the beginning
of the year to that at the end of the year:
2024 2023
Net opening balance, Jan. 1 121 55
Charges to equity –9 31
Charges to profit for the year – 35
Net closing balance, Dec. 31, net 112 121
A10. Shares in Group companies
2024 2023
Accumulated cost
Opening balance, Jan. 1 272 816 259 254
Investments 2 –
Net investment hedge 21 1 075
Shareholders’ contribution 5 932 12 504
Divestments – –17
Closing balance, Dec. 31 278 771 272 816
Accumulated write-up
Opening balance, Jan. 1 600 600
Closing balance, Dec. 31 600 600
Accumulated write-down
Opening balance, Jan. 1 –80 956 –80 363
Write-down – –593
Closing balance, Dec. 31 –80 956 –80 956
Total 198 415 192 460
For further information about Group companies, see note A21.
A11. Other financial assets
2024 2023
Receivables from Group companies – 9
Endowment insurances 209 205
Financial assets measured at amortized cost:
– other financial receivables 70 57
Closing balance, Dec. 31 279 271
Endowment insurances relate to defined contribution pension plans and are
pledged to the pension beneficiary (see note A15 and A20).
A12. Other receivables
2024 2023
Receivables from Group companies 5 223 4 501
Financial assets measured at amortized cost:
– other receivables 26 26
Prepaid expenses and accrued income 138 85
Closing balance, Dec. 31 5 387 4 612
A13. Cash and cash equivalents
2024 2023
Cash and cash equivalents measured at
amortized cost:
– cash – –
Closing balance, Dec. 31 – –
The Parent Company’s guaranteed, but unutilized, credit lines equaled
MSEK 7 338 (7 073).
A14. Equity
For information on share transactions and mandates approved by the
Annual General Meeting and proposed dividend for 2024, 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
Atlas Copco Group 2024 152
FINANCIAL STATEMENTS – NOTES
A15. Post-employment benefits
2024 2023
Defined contribution
pension plans
Defined benefit
pension plans Total
Defined contribution
pension plans
Defined benefit
pension plans Total
Opening balance, Jan. 1 205 4 209 199 4 203
Provision made 33 1 34 33 1 34
Provision used –29 –1 –30 –27 –1 –28
Closing balance, Dec. 31
209
4 213
205 4
209
The Parent Company has endowment insurances of 209 (205) 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 AB´s pension trust. The second plan relates to retired former senior employees.
These pension arrangements are provided for.
2024 2023
Funded pension Unfunded pension Total Funded pension Unfunded pension Total
Defined benefit obligations 197 4 201 186 4 190
Fair value of plan assets –677 – –677 –594 – –594
Present value of net obligations –480 4 –476 –408 4 –404
Not recognized surplus 480 – 480 408 – 408
Net amount recognized in balance sheet – 4 4 – 4 4
2024 2023
Reconciliation of defined benefit obligations
Funded pension Unfunded pension Total Funded pension Unfunded pension Total
Defined benefit obligations at Jan. 1 186 4 190 172 4 176
Service cost 4 1 5 3 1 4
Interest expense 5 – 5 5 – 5
Benefits paid from plan 11 – 11 14 – 14
Other changes in obligations –9 –1 –10 –8 –1 –9
Defined benefit obligations at Dec. 31 197 4 201 186 4 190
2024 2023
Reconciliation of plan assets Funded pension Unfunded pension Total Funded pension Unfunded pension Total
Fair value of plan assets at Jan. 1 594 – 594 625 – 625
Return on plan assets 91 – 91 –23 – –23
Payments/Renumeration of plan assets –8 – –8 –8 – –8
Fair value of plan assets at Dec. 31 677 – 677 594 – 594
2024 2023
Pension commitments provided
for in the balance sheet
Costs excluding interest 17 16
Total 17 16
Pension commitments provided for
through insurance contracts
Service cost 27 25
Total 27
25
Net cost for pensions, excluding taxes 44 41
Special employer’s contribution 9 7
Total 53 48
Pension expenses excluding taxes for the year, included within administra-
tive expenses amounted to 44 (41) of which the Board members and Group
Management 17 (12) and others 27 (29).
The Parent Company’s share in plan assets fair value in the Atlas Copco AB´s
pension trust amounts to 677 (594) and is allocated as follows:
2024 2023
Equity securities 92 107
Bonds 131 119
Real estate 38 2
Alternative investments 299 281
Cash and cash equivalents 117 85
Total 677 594
The plan assets of the Atlas Copco AB´s pension trust are not included in the
financial assets of the Parent Company.
The return on plan assets in the Atlas Copco AB´s pension trust amounted
to 7.8% (0.24) inclusive of MSEK 8 (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 14 will be paid to defined benefit pension
plans during 2025.
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 2024 153
FINANCIAL STATEMENTS – NOTES
A16. Other provisions
2024 2023
Opening balance, Jan. 1 651 501
During the year:
– provisions made 8 364
– provisions used –135 –214
Closing balance, Dec. 31
524
651
Other provisions include primarily provisions for costs related to employee
option programs accounted for in accordance with IFRS 2 and UFR 7.
A17. Borrowings
2024 2023
Maturity Repurchased nominal amount Carrying amount Fair value Carrying amount Fair value
Non-current
Medium Term Note Program MEUR 500 2026 5 078 5 550 5 077 5 215
Bilateral borrowings EIB MEUR 200 2027 2 030 2 185 2 030 2 099
Bilateral borrowings EIB MEUR 100 2028 1 012 1 076 1 012 1 009
Bilateral borrowings EIB MEUR 415 2030
4 576 4 870
4 576 4 718
Bilateral borrowings EIB MEUR 60 2030 697 704 697 683
Bilateral borrowings NIB MEUR 183 2031 2 045 2 117 2 045 2 053
Non-current borrowings from Group companies 19 564 21 366 19 168 20 752
Total non-current borrowings
35 002
37 868 34 605
36 529
Closing balance, Dec. 31 35 002 37 868 34 605 36 529
Whereof external borrowings 15 438 16 502 15 437 15 777
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.
The following table shows the maturity structure of the Parent Company’s
external borrowings.
Maturity Fixed Floating ¹ Carrying amount Fair value
2026 5 078 – 5 078 5 550
2027 2 030 – 2 030 2 185
2028 1 012 – 1 012 1 076
2030 – 5 273 5 273 5 574
2031 – 2 045 2 045 2 117
Total 8 120 7 318 15 438 16 502
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
Atlas Copco Group 2024 154
FINANCIAL STATEMENTS – NOTES
A18. Other liabilities
2024 2023
Accounts payable 40 24
Liabilities to Group companies 76 63
Other financial liabilities
14
47
Accrued expenses and prepaid income 213 222
Closing balance, Dec. 31 343 356
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 15 438 (15 437) of external borrowings and
MSEK 19 564 (19 168) of internal borrowings at December 31, 2024.
Hedge accounting
The Parent Company hedges shares in subsidiaries through loans of MEUR
2 378 (2 378). 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 2024 2023
Cash and cash equivalents – –
Receivables from Group companies 5 223 4 510
Other 234 169
Total 5 457 4 679
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
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
2024 2023
Assets pledged for pension commitments
Endowment insurances 209 205
Total 209 205
Contingent liabilities
Sureties and other contingent liabilities:
– for external parties 4
3
– for Group companies 11 511 10 843
Total 11 515 10 846
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
Atlas Copco Group 2024 155
FINANCIAL STATEMENTS – NOTES
A21. Directly owned subsidiaries
2024 2023
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 46 995 76 416 100 46 931
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 –
99 998 100
–
Atlas Copco (India) Private Ltd, Pune 21 870 912 100 926 21 731 917 100 933
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 16
Atlas Copco (Philippines) Inc., Manila 677 980 100 130 677 980 100 129
Atlas Copco (Schweiz) AG, Studen 8 000 100 66 8 000 100 65
Atlas Copco (South East Asia) Pte. Ltd,
Singapore
4 500 000 100 35 4 500 000 100 35
Atlas Copco (Thailand) Limited,
Bangkok
1 –/100 ¹ – 1 –/100 ¹ –
Atlas Copco Argentina S.A.C.I.,
Buenos Aires
2 122 102 334 98/100 ¹ 102 5 120 025 93/100 ¹ 84
Atlas Copco Brasil Ltda., Barueri 70 358 841 100 257 70 358 841 100 259
Atlas Copco Canada Inc., Toronto 6 946 100 2 417 6 946 100 2 417
Atlas Copco Chile SpA, Santiago 24 998 100 8 24 998 100 7
Atlas Copco Compressor AB,
556155-2794, Nacka
60 000 100 40 60 000 100 38
Atlas Copco Eastern Africa Limited,
Nairobi
482 999 100 41 482 999 100 40
Atlas Copco Equipment Egypt
S.A.E., Cairo
5 –/100 ¹ 5 5 –/100 ¹ 5
Atlas Copco GmbH, Vienna 1 100 44 1 100 43
Atlas Copco KK, Tokyo 100 000 100 43 100 000 100 41
Atlas Copco Kompressorteknik A/S,
Albertslund
4 000 100 5 4 000 100 5
Atlas Copco Maroc SA, Casablanca 3 960 99 7 3 960 99 6
Atlas Copco Polska Sp. z o.o., Warsaw 4 000 100 81 4 000 100 81
Atlas Copco Services Middle East
OMC, Manama
500 100 29 500 100 31
Atlas Copco Ukraine LLC, Kiev 10 000 000 100 4 10 000 000 100 4
2024 2023
Number of
shares
Percent
held
Carrying
value
Number of
shares
Percent
held
Carrying
value
Atlas Copco Venezuela SA,
Valencia
1 592 100 13 1 592 100 9
Sociedade Atlas Copco de Portugal
S.A., Porto Salvo
1 100 19 1 100 19
Directly owned holding companies
and others
AB Atlas Diesel, 556019-1610, Nacka 1 000 100 – 1 000 100 –
Atlas Copco A/S, Vestby
2 500 100
47
2 500 100
46
Atlas Copco Beheer B.V., Zwijndrecht 15 712 100 76 15 712 100 76
Atlas Copco Finance Belgium bv,
Wilrijk
1 –/100 ¹ – 1 –/100 ¹ –
Atlas Copco Finance DAC, Dublin 5 162 000 001 100 55 981 5 162 000 001 100 55 954
Atlas Copco France Holding S.A.,
Frépillon
278 255 100 330 278 255 100 338
Atlas Copco Holding GmbH, Essen 2 100 21 246 2 100 21 232
Atlas Copco Indoeuropeiska AB,
556155-2760, Nacka
3 500 100 20 3 500 100 20
Atlas Copco Internationaal B.V.,
Zwijndrecht
10 002 100 27 446 10 002 100 27 439
Atlas Copco Järla Holding AB,
556062-0212, Nacka
95 000 100 124 95 000 100 124
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 41 527 1 000 100 35 699
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 34 150 100 33
Saltus Industrial Technique AB,
559053-5455, Nacka
500 100 – 100 100 –
Carrying amount, Dec. 31 198 415 192 460
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
Atlas Copco Group 2024 156
FINANCIAL STATEMENTS – NOTES
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 94–97.
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:
2024 2023
Revenues
Dividends 18 917 9 739
Group contribution 2 910 3 383
Interest income 173 184
Expenses
Group contribution – –
Interest expenses –683 –309
Receivables 5 223 4 510
Liabilities 19 640 19 231
Guarantees 11 511 10 843
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
AVT Service Pty Ltd Sydney
Dewatering Holdings No 2 Pty Limited Perth
LEWA Australia PTY LTD East Perth
National Pump and Energy Pty Ltd Birtinya
Sykes Group Pty Ltd Cardiff
Country/Area Company Location (City)
Australia 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
Delta Temp Group BV Oosterzele
Delta Temp NV Oosterzele
EDMAC Europe n.v. Wilrijk
Geveke Process Technology bv Vilvoorde
International Compressor Distribution n.v. Wilrijk
MultiAir BELUX nv Nazareth
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
Industrial Flow South America Ltda. Diadema
ISRA VISION Comércio, Serviços, Importação
e Exportação Ltda. Barueri
Itubombas Locação, Comércio, Importação
e Exportação Ltda. Itu
Leybold do Brasil Ltda. Jundiaí
Metalplan Equipamentos LTDA Cajamar
Perceptron do Brazil Ltda. Barueri
Pressure Compressores Ltda. Maringa
Tecturbo Compressores Peças e Serviços LTDA Campinas
Vacuum Technique Brasil Ltda. Sao Paulo
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
China Anhui Nuoyi Technology Co., Ltd. Hefei
Atlas Copco (Wuxi) Compressor Co., Ltd. Wuxi
Atlas Copco (Shanghai) Equipment Rental Co., Ltd. Shanghai
Atlas Copco Industrial Technique (Shanghai) Co., Ltd. Shanghai
Country/Area Company Location (City)
China 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
Kracht Fluid Technology 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 BeaconMedaes Medical Gas 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 Origin Industry Service Co., Ltd Wuxi
Wuxi Pneumatech Air/Gas Purity Equipment Co., Ltd. Wuxi
Wuxi Shengda Air/Gas Purity Equipment Co., Ltd. Wuxi
Colombia Atlas Copco Colombia Ltda Bogota
Croatia Atlas Copco d.o.o. Zagreb
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
Schneider Airsystems s.r.o. Line
Denmark Atlas Copco Kompressorteknik A/S Albertslund
Danmil A/S Greve
Oxymat A/S Helsinge
RENO A/S Aarhus
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 2024 157
FINANCIAL STATEMENTS – NOTES
A22. Related parties, continued
Country/Area Company Location (City)
Ecuador Empresa Comercial Vele Leiva EMCOVELE, S.A. Quito
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
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 regel- und fördertechnische Geräte GmbH Kerpen
Atlas Copco Beteiligungs GmbH ¹ Essen
Atlas Copco Energas GmbH ¹ Cologne
Atlas Copco EPS GmbH ¹ Neustadt a.d. Donau
Atlas Copco Holding GmbH ¹ Essen
Atlas Copco IAS GmbH ¹ Bretten
Atlas Copco Industrial Software GmbH ¹ Leinfelden-Echterdingen
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)
Delta-Temp GmbH Recklinghausen
Desoutter GmbH ¹ Maintal
DF Druckluft-Fachhandel GmbH ¹ Herrenberg
Dipotec GmbH ¹ Neustadt a.d. Donau
Edwards GmbH Feldkirchen
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
Kracht GmbH ¹ Werdohl
LEWA GmbH ¹ Leonberg
Country/Area Company Location (City)
Germany LEWA Solutions GmbH ¹ Leonberg
Leybold Dresden GmbH Dresden
Leybold GmbH Cologne
Leybold Real Estate GmbH ¹ Cologne
Medgas-Technik GmbH Medical-Technology ¹ Berndroth
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
soft2tec GmbH ¹ Russelsheim
VisionTools Bildanalyse Systeme GmbH ¹ Waghäusel
Greece Atlas Copco Hellas AE Koropi
Hong Kong Atlas Copco China/Hong Kong Ltd Hong Kong
Hungary Atlas Copco Hungary Kft Szigetszentmiklós
Kracht Hidraulik Kft. Budapest
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
Israel Edwards Israel Vacuum Ltd Kiryat Gat
Italy ABAC Aria Compressa S.r.l Robassomero
Atlas Copco BLM S.r.l. Milan
Atlas Copco Italia S.r.l. Milan
Baraghini Compressori S.r.l. Pievesestina di Cesena (FC)
C.P. Service SRL Naples
Ceccato Aria Compressa S.r.l Montecchio Maggiore
Desoutter Industrial Tools SrL Lissone
Edwards S.r.l. Milan
ESA Service S.r.l. Treviglio
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
Country/Area Company Location (City)
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
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
Delta Temp Nederland BV Rotterdam
Eco Ketelservice Verhuur B.V. Tilburg
Eco Steam Trading & Consultancy B.V. Tilburg
E.K.S. Holding B.V. Tilburg
Geveke Werktuigbouw BV Amsterdam
Leybold Nederland B.V. Utrecht
Perslucht Wilda B.V. Woudenberg
Pomac BV Tolbert
New Zealand Atlas Copco (N.Z.) Ltd. Auckland
Conhur Limited Takanini
Exlair (NZ) Limited Auckland
Generator Holdings Limited Auckland
Generator Rental Services 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. Manila
Poland ALUP Kompressoren Polska sp. z.o.o. Janki
Atlas Copco Polska Sp. z o.o. Warsaw
Vector Sp. z o.o. Tarnowo Podgórne
¹ Legal regulations allow for an exemption from local statutory requirements if the criteria set out in section 264 (3) of the Handelsgesetzbuch
(HGB – German Commercial Code) are met. This exemption has been applied to German subsidiaries for the financial year 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
Atlas Copco Group 2024 158
FINANCIAL STATEMENTS – NOTES
Country/Area Company Location (City)
Portugal Arlogica Maquinas e Equipamentos, LDA Árvore
Sociedade Atlas Copco de Portugal S.A. 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
Nano-Purification Solutions Asia Pacific Pte Ltd Singapore
Vacuum Technique Singapore Pte Ltd Singapore
Slovakia ACG Air & Gas Solutions SK s.r.o. Vadovce
ACJ s.r.o. Samorin
Atlas Copco s.r.o Bratislava
Schneider Airsystems s.r.o. Nitra
Slovenia Atlas Copco d.o.o. Trzin
South Africa Atlas Copco Group Holdings (PTY) LTD Johannesburg
Atlas Copco Industrial South Africa (Pty) Ltd Boksburg
Integrated Pump Rental (Pty) Ltd Johannesburg
Rand Air South Africa (Pty) Ltd Boksburg
South Korea Atlas Copco Korea Co., Ltd. Seongnam
CP Tools Korea Co., Ltd. Seoul
CSK Inc. Yongin
Edwards Korea Ltd Cheonan
ISRA VISION Korea Co. Ltd Seoul
LEWA Korea Co., Ltd. Seoul
Leybold Korea Ltd Bundang
Presys Co., Ltd Suwon
Spain Aire Comprimido Industrial Iberia, S.L. Madrid
Atlas Copco S.A.E. Madrid
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
Swed-Weld AB Värnamo
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
Country/Area Company Location (City)
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
ISRA VISION Yapay Görme Ve Otomasyon San. Ve Tı̇c. A.ş Istanbul
Multiair Endüstriyel Hava Ekipmanları Ticaret A.Ş. Istanbul
SCS Makina İthalat İhracat Ticaret A.Ş. Adana
Tekser Endüstriyel Cihazlar Sanayi ve Ticaret A.Ş. Istanbul
Ukraine Atlas Copco Ukraine LLC Kiev
United Arab
Emirates
Primax Pumps FZCO Dubai
Atlas Copco Middle East FZE Dubai
LEWA Middle East FZE Sharjah
United
Kingdom
Ace Air (NI) Ltd Dromara
AE Industrial & Air Equipment Limited Warrington
Air Compressors and Tools Limited Warrington
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
Glaston Compressor Services Limited Hemel Hempstead
Kinder-Janes Engineers Limited St Albans
Kingsdown Compressed Air Systems (Holdings) Limited Maidstone
Kingsdown Compressed Air Systems Limited Maidstone
Leybold UK Ltd. Chessington
Maziak Compressor Services Limited Wellingborough
Maziak Holdings 2022 Limited Wellingborough
Maziak Holdings Limited Wellingborough
Nano Purification Solutions Ltd Gateshead
Pennine Pneumatic Services Ltd Hemel Hempstead
Pneumatic Services Limited Hemel Hempstead
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
A22. Related parties, continued
Country/Area Company Location (City)
U.S.A Atlas Copco North America Inc. 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
Kracht Corp. Maumee
Leybold USA Inc. Wilmington
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
Quincy Compressor LLC Bay Minette
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 the date as evidenced by our electronic signature
Hans Stråberg Jumana Al-Sibai Johan Forssell Heléne Mellquist Anna Ohlsson-Leijon
Chair Board member Board member Board member Board member
Vagner Rego Gordon Riske Peter Wallenberg Jr Karin Rådström Benny Larsson Helena Hemström
Board member 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 20, 2025.
Atlas Copco Group 2024 159
SIGNATURES OF THE BOARD OF DIRECTORS
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
• Signatures of the Board
of Directors
Auditorʼs report
Financial definitions
Four years in summary
Contact information
Auditorʼs report
This is the translation of the auditor’s report in Swedish
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 90–99
and the statutory sustainability report on pages 5–11 and 32–80, and
quarterly data on page 117 for the year 2024. The annual accounts and
consolidated accounts of the company are included on pages 5–80, 82–87
and 90–159 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 2024 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 2024
and their financial performance and cash flow for the year then ended in
accordance with IFRS Accounting Standards, as adopted by the EU, and the
Annual Accounts Act. Our opinions do not cover the corporate governance
statement on pages 90–99 and the statutory sustainability report on pages
5–11 and 32–80. 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, 2024, the total value of goodwill amounts to 51.8 billion
SEK and is allocated to the group’s cash generating units. Goodwill is tested
for impairment 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 test for 2024 did not result in any
impairment loss.
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. We have further examined how the group, based on
established criteria, identifies cash-generating units.
With support from our internal valuation specialists, we have evaluated
the valuation methods used. We have assessed the reasonableness of
significant assumptions and reviewed these through sensitivity analyses as
well as, where possible, comparison to historical outcome, external sources,
and comparable benchmark companies.
Finally, we have assessed the appropriateness of the disclosures provided
in the annual report.
Revenue recognition
Description
The group recognizes revenue from a wide range of geographical markets
and the revenues are generated from different 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. Significant estimates and 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
Atlas Copco Group 2024 160
AUDITOR’S REPORT
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
•Auditorʼsreport
Financial definitions
Four years in summary
Contact information
considered satisfied. In addition, we have performed detailed revenue
transaction testing and data analytical procedures to assess the revenue
recognition.
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, 88–89 and 164–166
as well as quarterly data on page 117. 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 skepticism 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 presentation.
• Plan and perform the group audit to obtain sufficient and appropriate
audit evidence regarding the financial information of the entities or busi-
ness units within the group as a basis for forming an opinion on the con-
solidated accounts. We are responsible for the direction, supervision and
review of the audit work performed for purposes of the group audit. We
remain solely responsible for our opinions.
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 2024 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.
Auditorʼs report, continued
Atlas Copco Group 2024 161
AUDITOR’S REPORT
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
•Auditorʼsreport
Financial definitions
Four years in summary
Contact information
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 skepticism 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 2024.
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
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.
Auditorʼs report, continued
Atlas Copco Group 2024 162
AUDITOR’S REPORT
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
•Auditorʼsreport
Financial definitions
Four years in summary
Contact information
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 90–99 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 auditorʼs 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 32–80, and that it is prepared in accordance with the
Annual Accounts Act, in accordance with the old version in force before 1 July
2024.
Our examination has been conducted in accordance with FAR’s auditing
standard RevR 12 The auditorʼs 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 24 April 2024 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
Auditorʼs report, continued
Atlas Copco Group 2024 163
AUDITOR’S REPORT
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
•Auditorʼsreport
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 AB 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/investors/financials/key-financials/financial-definitions
Atlas Copco Group 2024 164
FINANCIAL DEFINITIONS
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
Auditorʼs report
• Financial definitions
Four years in summary
Contact information
Orders, revenues and profit 2024 2023 2022 2021
Orders, MSEK 171 115 170 627 158 092 129 545
Revenues, MSEK 176 771 172 664 141 325 110 912
Change, organic from volume, price and mix, % 2 14 12 14
EBITDA, MSEK 46 951 44 852 36 549 29 025
EBITDA margin, % 26.6 26.0 25.9 26.2
Operating profit, MSEK 38 166 37 091 30 216 23 559
Operating profit margin, % 21.6 21.5 21.4 21.2
Net interest expense, MSEK –258 –521 –166 –234
Profit before tax, MSEK 37 800 36 442 30 044 23 410
Profit margin, % 21.4 21.1 21.3 21.1
Profit for the year, MSEK 29 794 28 052 23 482 18 134
Employees 2024 2023 2022 2021
Average number of employees 54 206 51 110 45 781 41 272
Revenues per employee, SEK thousands 3 261 3 378 3 087 2 687
Cash flow 2024 2023 2022 2021
Operating cash surplus, MSEK 47 099 45 781 36 978 28 952
Cash flow before change in working capital, MSEK 37 263 35 628 29 600 23 870
Change in working capital, MSEK 2 068 –5 775 –7 415 –244
Cash flow from investing activities, MSEK –13 322 –9 388 –15 503 –6 121
Gross investments in other property, plant and
equipment, MSEK –4 236 –3 987 –3 660 –1 970
Gross investments in rental equipment, MSEK –2 526 –1 814 –884 –510
Net investments in rental equipment, MSEK –2 444 –1 769 –808 –474
Cash flow from financing activities, MSEK –15 864 –18 276 –14 651 –10 323
of which dividends paid, MSEK –13 652 –11 211 –9 250 –8 889
Operating cash flow, MSEK 30 981 23 192 17 099 19 378
Four years in summary
Financial position and return 2024 2023 2022 2021
Total assets, MSEK 208 538 182 684 172 301 136 683
Capital turnover ratio 0.89 0.94 0.91 0.88
Capital employed, average MSEK 138 593 125 133 106 054 87 537
Capital employed turnover ratio 1.28 1.38 1.33 1.27
Return on capital employed, % 28 30 29 27
Net indebtedness, MSEK 18 102 23 441 26 570 8 151
Net debt/EBITDA, MSEK 0.4 0.5 0.7 0.3
Equity, MSEK 113 760 91 500 80 026 67 634
Debt/equity ratio, % 16 26 33 12
Equity/assets ratio, % 55 50 46 49
Return on equity, % 29 32 32 30
Key figures per share 2024 2023 2022 2021¹
Basic earnings / diluted earnings, SEK 6.11/6.10 5.76 / 5.75 4.82 / 4.81 3.72 / 3.71
Dividend, SEK 3.00 ² 2.80 2.30 1.90
Dividend as % of basic earnings 49.1 48.6 47.7 51.0
Dividend yield, % 1.6 1.9 2.0 1.4
Redemption of shares, SEK – – – 2.00
Operating cash flow, SEK 6.36 4.76 3.51 3.98
Equity, SEK 23 19 16 14
Share price, December 31, A share / B share, SEK 168.9/ 149.5 173.6 / 149.4 123.1 / 111.1 156.5 / 133.1
Highest price quoted, A share / B share, SEK 206.4/178.5 174.2 / 150.0 161.2 / 136.3 157.4 / 133.4
Lowest price quoted, A share / B share, SEK 159.8/139.5 119.4 / 106.5 92.5 / 83.2 108.5 / 94.8
Average closing price, A share / B share, SEK 183.4/160.1 144.2 / 126.1 117.9 / 104.4 134.9 / 114.9
Average number of shares, millions 4 873.6 4871.4 4 868.4 4 870.9
Diluted average number of shares, millions 4 881.7 4878.9 4 875.9 4 882.1
Number of shareholders, December 31 141 964 125 893 115 459 87 923
Market capitalization, December 31, MSEK 800 200 815 902 586 731 732 967
¹ Adjusted for share split in 2022
² Proposed by the Board
Atlas Copco Group 2024 165
FOUR YEARS IN SUMMARY
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
Auditorʼs report
Financial definitions
• Four years in summary
Contact information
Atlas Copco Group 2024 166
CONTACT INFORMATION
Introduction
This is Atlas Copco Group
The year in review
Financials
Other information
Signatures of the Board
of Directors
Auditorʼs report
Financial definitions
Four years in summary
• Contact information
CONTACT INFORMATION
Investor relations
Daniel Althoff, Vice President Investor Relations
Sustainability
Anna Sjörén, Vice President Sustainability
Media
Christina Malmberg Hägerstrand, Media Relations Manager
Atlas Copco Group in cooperation with
Griller grafisk form AB and Text Helene AB
Copyright 2025, Atlas Copco AB, Stockholm, Sweden
Prepress and print: POD Sthlm
Phone: +46 8 743 80 00
Reg. no: 556014-2720