The Atlas Copco Book Jeanette Livijn Senior Vice President Atlas Copco Group Organisational development and management resourcing Committed to sustainable productivity 2 Established 1873 in Stockholm, Sweden Four focused business areas • Compressor Technique • Industrial Technique • Mining and Rock Excavation Technique • Construction Technique Global presence Customers in 186 countries Employees 40 000 Annual revenues 2012 BSEK 90.5 (BEUR 10.5) Annual operating margin 20% Diversity 51 nationalities among top 350 leaders Atlas Copco Group Presentation 2013, v1 An industry benchmark 3 Atlas Copco Group Presentation 2013, v1 4 CEO with a vision First in Mind—First in Choice ® How can we - grow faster on a global basis? - operate close to our customers? - delegate consolidated P/L? - develop multiple businesses? - stay innovative? - have a high performing culture? 5 Atlas Copco Group Presentation 2013, v1 CEO with a vision First in Mind—First in Choice ® - 6 Vision and values Divisionalization The way we do things Internal job market The Atlas Copco Book Atlas Copco Group Presentation 2013, v1 7 Long term and vision driven 9 1 (5) Strategic alignment & ownership Mission – sustainable profitable growth Transparence in strategies and expectations Ownership and clarity in roles and responsibilities Freedom with accountability Strive for innovation and continuous improvements – There is always a better way 10 2 (5) Vital organization, reflecting outlined strategy 3(5) Internal growth of leaders Mission is between 3-5 years All positions in all countries are advertised internally Managers grow employees for the Group Equal opportunities Goal is 85% internally recruited managers Broad based talent philosophy and no succession planning 11 Decentralized structure for innovation Divisional presidents (22) have our highest operational responsibility 4(5) The Atlas Copco Organization Board of Directors President and CEO Clear accountability for consolidated P/L and working capital in all 400 business units Executive Group Management and Corporate Functions Compressor Technique Industrial Technique Atlas Copco Tools and Assembly Systems Motor Vehicle Industry Mining and Rock Excavation Technique Underground Rock Excavation Advanced business control system to follow up trends and results on a monthly basis Oil-free Air Compressor Technique Service Chicago Pneumatic Tools Geotechnical Drilling and Exploration Gives speed and agility Airtec Tooltec Rocktec Industrial Air Specialty Rental Gas and Process Drilling Solutions Secoroc Service Division Customer Centers and Service Providers Stay close to customers Support innovation and entrepreneurial spirit Atlas Copco Tools and Assembly Systems General Industry Surface Drilling Equipment 1 Construction Technique Construction Tools Road Construction Equipment Portable Air Service Division Strong company culture 5(5) • Bring in the right people and let them understand culture, values & strategy. • Leadership – internal mobility walk the talk. • Transparent and free flow of feedback. The Story about the Atlas Copco book 14 Committed to sustainable productivity. 15