Atlas Copco CorporationAnnual Report 2023 released: An unforgettable year with record orders and revenue

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Recently, the Atlas Copco Group released its 2023 annual report。Group President and CEO MATS Ramstram commented on the past year:

It has been a memorable year and we have achieved several milestones。We achieved record orders and revenues and had the opportunity to celebrate our 150th anniversary。Our business growth is driven by our people and their continued focus on creating value for our customers。This focus allows us to respond well to opportunities and challenges and ensures that we continue to build a stronger and better company。

Highlights for 2023:

Order book increased by 8% to SEK 176.27 billion (2022 order book: SEK 158.92 billion)

Revenue increased 22% to SEK 172.664 billion (2022 revenue: SEK 141.325 billion), an organic increase of 14%

Acquired 17 companies worldwide in four business areas

Invest in new manufacturing sites in the US, Asia and Europe to gain strong local business capabilities across the value chain

Celebrating the 150th anniversary of the Atlas Copco Group

Market review and demand

Demand for Atlas Copco Group equipment and services remained strong in 2023, with total orders increasing。In comparable currencies, the Group's equipment order book remained essentially unchanged, while the Services segment, which includes the professional leasing business, grew At 16%, positive developments were recorded in all business areas and all regions。

Solutions that take into account the full impact

At the heart of our value creation lies technology and people that help our customers and society meet their challenges。In 2023, we will invest 4% of our total revenue (approximately SEK 6.66 billion) in research and development。Over the past few years, we have continuously increased our investment in developing efficient technologies and solutions to enable the transition to a low-carbon society。

There is no doubt that climate change is the greatest challenge of our time, and we are committed to being part of the solution by reducing the environmental impact of our operations and products。At the same time, creating growth platforms in new areas linked to society's need for new energy, new modes of transportation, and automation may be our greatest opportunity ever。If we are to successfully control global warming and keep temperatures within the limits of what the planet can tolerate, major changes are required。We are proud that Atlas Copco has played an important role in this transformation。

Thanks to our connectivity technologies, vacuum solutions and compressors, we have a clear role to play in electrifying the transport industry。We are also an important partner for our customers in the development of energy storage solutions and renewable energy production products such as photovoltaic panels, wind turbines and hydrogen。These areas are playing an increasingly important role in our business。In recent years, we have also increased our focus on research and development activities for new growth platforms, resulting in the launch of several new products。

Commit to real change

By setting science-based carbon reduction targets, we commit to reducing direct and indirect greenhouse gas emissions in line with the Paris Agreement。However, we have not yet been able to reduce emissions from the use phase of products。

Today, the vast majority of our products are electrified。Reducing customer emissions is a challenge we share with other industrial companies, as our progress depends on the development of new technologies externally and the adoption of infrastructure。Reducing the emissions of energy consumed by our products will require the wider adoption of renewable energy sources and the decarbonisation of the electricity grid。We are making good progress in terms of our own emissions, regulated sources of emissions, and indirect emissions from purchased energy。This demonstrates our commitment to making a real difference and our determination to take our long-term goals seriously。

Another positive effect of setting ambitious goals is to inspire new thinking and initiatives。This year, we launched climate awareness training and held "Climate hackathons" at companies around the country "How can we as a company reduce our own and our customers' impact on the climate。We should all be thinking about what we can do, individually and collectively, to ensure that the next generation can continue to thrive on our wonderful planet and enjoy the possibilities of economic development and open and inclusive societies。

Sustainable commitment

The Atlas Copco Group is committed to continuously improving our environmental performance and to conducting our business in an environmentally friendly manner to protect our planet for future generations。More than 90% of CO2 emissions in our value chain are generated by our customers when they use our products。To reduce emissions from product use, our main focus is on improving the energy efficiency of our products and continuing to electrify the small percentage of products that are not yet electrified。

Compressor technology business area

Focus on continuously improving product efficiency, increasing the proportion of sales mix of energy-efficient products, and optimizing the compressor room through smarter central control and variable speed combination。

Vacuum technology business area

Focus on improving product performance, integrating smart technologies to optimize the energy required, and leveraging our service team for product upgrades that extend product life cycles。

Industrial technology business area

Focus on the development and delivery of electric product lines that replace pneumatic products, improve the energy efficiency of existing product lines, and optimize the use of products by customers。

Power Technology business area

Focus on electrifying alternatives for each product, including energy storage systems, improving the fuel efficiency of internal combustion engines, and encouraging customers to use renewable diesel (hydrogenated vegetable oil) by offering solutions for using hydrogenated vegetable oil on construction sites。