ATLAS COPCO 
ANNUAL REPORT 2014  
Atlas Copco achieved record revenues,  
record cash flow and a healthy profit in  
a mixed business climate.

ABOUT THE ANNUAL REPORT  
Atlas Copco believes in delivering innovative products, reliable services and profitable growth while being 
a responsible corporate citizen. This annual report reflects Atlas Copco’s goal of creating sustainable, 
profitable development and it integrates financial, sustainability and governance information in order  
to describe Atlas Copco in a comprehensive and cohesive manner.  
The report is divided into two sections for simple navigation.
”THIS IS ATLAS COPCO” contains the relevant information about Atlas Copco’s vision, mission, strategy, 
structure and governance, how we do business as well as our long-term performance. 
”THE YEAR IN REVIEW” describes Atlas Copco’s annual performance and achievements. 
Atlas Copco Group                                                Inside front cover
Performance summary 2014
2
President and CEO
3
THIS IS ATLAS COPCO
6
Vision, mission and strategy
6
Goals for sustainable, profitable development
7
People, processes, structure and governance
9
This is how we do business
10
Creating value for all stakeholders
12
THE YEAR IN REVIEW
14
Administration report
14
Market review and demand development
14
Important events
15
Financial summary and analysis
15
Parent Company
19
Compressor Technique
20
Industrial Technique
24
Mining and Rock Excavation Technique
28
Construction Technique
32
Risks, risk management and opportunities
36
Innovation
40
Employees
44
Business partners
48
Society
49
Environment
52
The Atlas Copco share
54
Corporate governance 
56
Financial statements (Group)
66
Notes (Group)
71
Financial statements (Parent)
108
Notes (Parent)
110
Signatures of the Board of Directors
122
Audit report
123
Financial definitions
124
Sustainability notes (Group)
125
Auditor’s Limited Assurance Report on  
Atlas Copco AB’s Sustainability Report
132
Five years in summary
133
The audited annual accounts and consolidated accounts can be 
found on pages 14–47 and 56–122. The corporate governance report 
examined by the auditors can be found on pages 56–65.
Sustainability information that has been reviewed by the auditors  
can be found on pages 10–13, 40–53 and 125–131.
CONTENTS
CONTACTS: 
Investor Relations: 
Mattias Olsson, Vice President Investor Relations  
ir@se.atlascopco.com
Media:
Ola Kinnander, Media Relations Manager  
media@se.atlascopco.com
Sustainability:
Mala Chakraborti, Vice President Corporate Responsibility  
cr@se.atlascopco.com
Note: The amounts are presented in MSEK unless otherwise 
­indicated and numbers in parentheses represent compara-
tive figures for the preceding year.
Forward-looking statements: Some statements in this report 
are forward-looking, and the actual outcomes could be  
materially different. In addition to the factors explicitly dis-
cussed, other factors could have a material effect on the  
actual outcomes. Such factors include, but are not limited 
to, general business conditions, fluctuations in exchange 
rates and interest rates, political developments, the impact 
of competing products and their pricing, product develop-
ment, commercialization and technological difficulties,  
interruptions in supply, and major customer credit losses.
Atlas Copco AB and its subsidiaries are sometimes referred 
to as the Atlas Copco Group, the Group, or Atlas Copco.  
Atlas Copco AB is also sometimes referred to as Atlas 
Copco. Any mention of the Board of Directors or the Board 
refers to the Board of Directors of Atlas Copco AB.
Production: Atlas Copco AB, Griller Grafisk Form AB, Text Helene AB.  
Copyright 2015, Atlas Copco AB, Stockholm, Sweden. Print: Ineko. 9853 8303 01 (3 500)

WELCOME TO THE  
ATLAS COPCO GROUP
Atlas Copco is a world-leading provider of sustainable productivity 
solutions. The Group serves customers with innovative compressors, 
vacuum solutions and air treatment systems, construction and  
mining equipment, power tools and assembly systems. Atlas Copco 
develops products and service focused on productivity, energy  
efficiency, safety and ergonomics. The company was founded in 
1873, is based in Stockholm, Sweden, and has a global reach  
spanning more than 180 countries. In 2014, Atlas Copco had  
revenues of BSEK 94 (BEUR 10.3) and more than 44 000 employees.
Construction
Technique, 16%
Compressor 
Technique, 45%
Industrial 
Technique, 12%
Mining and 
Rock Excavation 
Technique, 27%
ORDERS RECEIVED, 
REVENUES AND  
OPERATING MARGIN
REVENUES BY  
REGION
SHARE OF  
REVENUES 
Orders received, MSEK
Operating margin, %
Revenues, MSEK
0
20 000
40 000
60 000
80 000
100 000
2014
2013
2012
2011
2010
0
5
10
15
20
25
MSEK
%
THE YEAR 
IN REVIEW
ATLAS COPCO GROUP
Asia/Australia, 28%
North 
America, 22%
Africa/
Middle East, 10%
Europe, 31%
South 
America, 9%
Equipment, 57%
Service, 43%
SHARE OF REVENUES BY BUSINESS AREA
ORDERS RECEIVED BY  
CUSTOMER CATEGORY
Other, 8%
Manufacturing, 33%
Construction, 
20%
Service, 5%
Mining, 20%
Process 
industry, 14%
COMPRESSOR 
TECHNIQUE
Revenues 2014:
MSEK 42 165
The Compressor Technique business area provides  
industrial compressors, vacuum solutions, gas and 
process compressors and expanders, air and gas 
treatment equipment and air management systems. 
The business area has a global service network and 
innovates for sustainable productivity in the 
manufacturing, oil and gas, and process industries. 
Principal product development and manufacturing 
units are located in Belgium, the United States, 
China, South Korea, Germany, Italy and the United 
Kingdom.
0
9 000
18 000
27 000
36 000
45 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
The orders received for small and medium­
sized compressors increased and the service 
business continued to grow in 2014. The  
demand for large compressors, however,  
was soft and orders decreased. Edwards, a 
technology and market leader in sophisticated 
vacuum products and abatement solutions, 
was acquired and the business area continued 
to invest in market presence, innovation and
competence development.
Asia/
Australia, 34%
North
America, 23%
Africa/
Middle East,  6%
Europe, 32%
South
America, 5%
Service, 37%
Equipment, 63%
Other, 10%
Manufacturing, 46%
Construction, 
7%
Service, 8%
Mining, 2%
Process industry, 27%

The Construction Technique business area provides 
construction and demolition tools, portable compres­
sors, pumps and generators, lighting towers, and  
compaction and paving equipment. The business area 
offers specialty rental and provides service through  
a global network. Construction Technique innovates 
for sustainable productivity in infrastructure, civil 
works, oil and gas, energy, drilling and road construc­
tion projects. Principal product development and  
manufacturing units are located in Belgium, Germany, 
Sweden, the United States, China, India and Brazil.
The Mining and Rock Excavation Technique busi­
ness area provides equipment for drilling and rock 
excavation, a complete range of related consum­
ables and service through a global network. The 
business area innovates for sustainable productivity 
in surface and underground mining, infrastructure, 
civil works, well drilling and geotechnical applica­
tions. Principal product development and manu­
facturing units are located in Sweden, the United 
States, Canada, China and India.
The Industrial Technique business area provides  
industrial power tools and systems, industrial  
assembly solutions, quality assurance products,  
software and service through a global network. The 
business area innovates for sustainable productivity 
for customers in the automotive and general indus­
tries, maintenance and vehicle service. Principal 
product development and manufacturing units are  
located in Sweden, Germany, the United States, 
United Kingdom, France and Japan.
Asia/
Australia, 22%
North 
America, 27%
Africa/
Middle East, 1%
Europe, 46%
South 
America, 4%
Asia/
Australia, 24%
North 
America, 22%
Africa/
Middle East, 18%
Europe, 21%
South 
America, 15%
Asia/
Australia, 21%
North 
America, 20%
Africa/
Middle East, 14%
Europe, 34%
South 
America, 11%
Service, 26%
Equipment, 74%
Service, 15%
Equipment, 69%
Service (rental), 
16%
Service
(consumables) 
24%
Equipment, 33%
Service, 43%
0
3 000
6000
9 000
12 000
15 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
0
7 000
14 000
21 000
28 000
35 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
0
3 000
6 000
9 000
12 000
15 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
The business area achieved healthy order 
growth in all major regions and for most types 
of industrial tools and assembly systems. The 
growth was supported by the motor vehicle  
and general industries’ investments and by 
strong development of the service business. 
The business area acquired Henrob, a pioneer 
and market leader in self-pierce riveting, and 
continued to invest in market presence, product 
development and service.
The demand for mining and rock excavation  
equipment remained at a low level and the order 
volumes were somewhat lower than in 2013. The 
service business was stable, while consumable  
orders were lower. The business area identified 
and implemented further efficiency measures to 
adapt the costs to the low demand, and it made 
one acquisition.
The order intake of construction equipment  
was largely unchanged. It improved in North 
America while it developed negatively in South 
America. Specialty rental as well as the service 
business developed well and the business area 
continued to invest in market presence and 
product development.
INDUSTRIAL  
TECHNIQUE
Revenues 2014:
MSEK 11 450
MINING AND ROCK  
EXCAVATION  
TECHNIQUE
Revenues 2014:
MSEK 25 718
CONSTRUCTION 
TECHNIQUE
Revenues 2014:
MSEK 14 739
Other, 7%
Manufacturing, 85%
Service, 3%
Process industry, 2%
Construction, 
3%
 Process 
industry, 1%
Mining, 66%
 Construction, 
33%
 Manufacturing, 14%
Others, 14%
Construction, 48%
Service, 8%
Mining, 8%
Process 
industry, 8%

Atlas Copco 2014
1
COMMITTED TO  
SUSTAINABLE PRODUCTIVITY
R&D expenditures
+30%
to MSEK 2 991 
Operating margin 
18.2% 
in 2014
Proposed distribution, SEK
12.00 
per share
Revenues, MSEK
93 721
in 2014
Atlas Copco achieved record  
revenues in 2014 in a mixed  
business climate with a good  
contribution from strategic  
acquisitions and growth of the 
service business.
CEO COMMENTS  
ON PAGE 4
3 870 000 000 kWh
Industrial Technique  
acquired Henrob,  
a pioneer and market  
leader in self-pierce  
riveting.
READ MORE  
AT PAGE 24
WATER FOR ALL 30 YEARS   
In 2014, the Atlas Copco Group’s main community  
engagement initiative Water for All celebrated  
30 years. Since the start, Water for All has provided  
access to clean drinking water to more than  
1.5 million people.
PAGE 51
IN MEMORIAM
PETER WALLENBERG 1926–2015
Atlas Copco Honorary Chair Peter Wallenberg, 
who was active with the Group for more  
than 61 years, passed away at the age  
of 88 years in January 2015. 
PAGE 56
Since the introduction, these energy efficient  
compressors have helped industry to save  
electricity sufficient to supply all of the households 
in the city of Paris for one year. 
SEE PAGE 43
VARIABLE SPEED DRIVE COMPRESSORS 
CELEBRATE 20 YEARS
MORE THAN
44 000 
EMPLOYEES

2
Atlas Copco 2014
PERFORMANCE SUMMARY 2014
FINANCIAL 
Unit 
Goal 
2014 
2013 
Change, %
Orders received 
MSEK 
93 873
81 290
+15
Revenues 
MSEK 
8% growth 
93 721
83 888
+12
EBITDA
MSEK
20 724
19 759
+5
Operating profit 
MSEK 
17 015
17 056
0
– as a percentage of revenues 
% 
18.2
20.3
Adjusted operating profit 
MSEK 
17 744
16 993
+4
– as a percentage of revenues 
% 
18.9
20.3
Profit before tax 
MSEK 
16 091
16 266
–1
– as a percentage of revenues 
% 
17.2
19.4
Profit for the year
MSEK 
12 175
12 082
+1
Basic earnings per share
SEK
10.01
9.95
Diluted earnings per share
SEK
9.99
9.92
Dividend per share
SEK
About 50% of 
earnings per share
6.00 1)
5.50
+9
Mandatory redemption per share
SEK
6.00 1)
–
Equity per share
SEK
42
33
Operating cash flow 
MSEK 
13 869
9 888
+40
Return on capital employed
% 
Sustained high
24.3
27.8
Return on equity
% 
28.1
33.6
ENVIRONMENTAL
Unit 
Goal 
2014 
2013 
Change
CO2 emissions
‘000 tonnes
330
309
+21
– from operations (Scope 1+2)
‘000 tonnes
–20%/COS
124
109
+15
– from transport (Scope 3)
‘000 tonnes
–20%/COS
206
200
+6
Water consumption
‘000 m3
+/–0 m3/COS
690
714
–24
Proportion of reused or recycled waste
%
100
93
93
0
ISO 14001 environmental management systems
% of cost of sales
100
96
97
–1
EMPLOYEES, HEALTH AND SAFETY
Unit 
Goal 
2014 
2013 
Change
Average number of employees
number
43 645
40 159
+3 486
Competence development
hours/employee
41
40
+1
Yearly appraisals
%
100
82
82
0
Internal mobility
%
Encourage
7.2
7.7
–0.5
Proportion of women employees
%
Increase
17.1
16.8
+0.3
Diversity in nationality among senior managers
number
Increase
54
52
+2
Sick leave
%
<2.5
1.9
2.0
–0.1
Accidents
number/one million hours
0
4.7
5.4
–0.7
Fatalities
number
0
1
0
+1
OHSAS 18001 health and safety systems
% of cost of sales
100
91
89
+2
GOVERNANCE
Unit 
Goal 
2014 
2013 
Change
Reports to the hotline
number
Encourage
47
47
0
Significant suppliers committed to the Business Code of Practice 
%
100
82
72
+10
  Positive trend/goal achieved       
  Neutral trend       
  Negative trend/goal not achieved
1)	 Proposed by the Board of Directors
	
A summary of the Group’s goals can be found on page 7.

Atlas Copco 2014
3
COMMITMENT TO INNOVATION 
IS KEY TO SUCCESS 
Atlas Copco achieved record revenues in 2014 in a mixed business 
climate with a good contribution from strategic acquisitions and growth 
of the service business. The Group also achieved a record cash flow  
and a healthy profit. We stand strong and will keep growing stronger  
in our pursuit of being First in Mind—First in Choice ® and achieving 
sustainable productivity for our customers.
PRESIDENT AND CEO

PRESIDENT AND CEO
4
Atlas Copco 2014
Standing strong 
The manufacturing industry was healthy and 
our sales of industrial tools as well as small 
and medium-sized compressors increased. 
Orders for construction equipment were 
largely unchanged in tough market condi-
tions, while mining equipment and large 
compressors had a weak development due  
to low investments in Asia. 
I am pleased to see that, in this challeng-
ing business climate with mixed demand for 
Atlas Copco’s equipment and services, we 
were able to reinforce our strong market 
position and further strengthen our service 
business, which continued to grow at a 
healthy pace. In total, organic order growth 
was 1 %. We made a number of acquisitions, 
which created new opportunities with an 
extended product offering to our customers 
and contributed to the Group achieving 
record order intake and record revenues. The 
challenging business climate, particularly  
in our mining segment, forced us to take 
measures to improve efficiency to safeguard 
long-term competitiveness. We were able to 
report a healthy profit. For 2015 and beyond, 
the Group is standing strong and our guid-
ing light remains our five strategic pillars for 
profitable growth: presence, innovation,  
service, operational excellence, and people.
Global presence 
With more than 44 000 employees working 
in 91 countries and with sales in more than 
180 countries, Atlas Copco is truly a global 
organization. In order to stay successful, we 
know we must be close to the customers. But 
presence is not only about geography. It is 
also about being in the right market seg-
ments with the right product offers and ser-
vice capabilities. The Group made two major 
acquisitions in 2014 that gave us access to 
adjacent and very attractive markets. We 
started the year by welcoming Edwards 
Group, which made us a market leader in 
vacuum solutions. The vacuum technology, 
which creates a pure environment for sensi-
tive manufacturing such as of semiconduc-
tors and flat panels, has many customers in 
common with our compressor operation. 
With Edwards part of the Group we can 
offer customers more comprehensive solu-
tions to boost their productivity. The other 
was Henrob, which made us a market leader 
in self-pierce riveting, a mechanical fasten-
ing process for joining sheets of material 
where welding is difficult, such as aluminum. 
Car manufacturers are increasingly using 
this technology as they build vehicles from 
new materials to make them lighter and more 
energy efficient. For example, the all-new 
2015 Ford F-150*, America’s best-selling 
vehicle for 32 years, is built with a high-
strength aluminum-alloy body with the help 
of Atlas Copco Henrob’s technology. 
Innovation to boost customer productivity
Innovation continues to be a core focus for 
us. We now have more than 3 100 research 
and development engineers. We continu-
ously optimize our investments in this area 
and work to reduce the time to market for 
our new inventions. Why are we so focused 
on innovation? Part of the answer is because 
it supports our goals for sustainable profit-
able development. We strive to increase our 
competitive edge by improving our custom-
ers’ energy efficiency by 20 % by 2020 through 
products that are developed, manufactured 
and sourced responsibly. That is why we are 
so focused on providing high-quality prod-
ucts that are more productive, energy effi-
cient, safer, ergonomic, lighter or that in 
other ways make customers more successful.
The GA VSD+ compressor that we 
launched in 2013 to great success is a perfect 
example of a very innovative machine that 
enhances customer productivity while also 
benefiting the environment. Compressors 
are used virtually everywhere in society and 
industry: on construction sites, oil platforms, 
in hospitals, in the manufacturing and pro-
cess industries, to name a few places. Atlas 
Copco pioneered the variable-speed drive 
(VSD) technology in 1994, enabling com-
pressors to run only at the speed necessary, 
cutting energy consumption. The new VSD+ 
technology, which involves a unique, pat-
ented drive system, cuts energy use by more 
than half compared with traditional com-
pressors. If every oil-injected screw compres-
sor sold in the world was a VSD+, it would 
reduce annual CO2 emissions by more than  
4 million tons, which is equivalent to the out-
put of almost 900 000 cars. This is truly the 
compressor for the present and the one the 
world will need. 
The mining industry is another area that 
is changing with innovation. Atlas Copco is 
offering automation technology that allows 
machine operators to remotely guide the 
equipment at a safe distance from high-risk 
areas. A key development focus for us now is 
multi-machine control, allowing one opera-
tor in a control room to look after several 
pieces of equipment, increasing efficiency  
for the customer. 
Other innovative products include ergo-
nomic assembly tools that not only tighten a 
bolt with the same torque every time but also 
offer traceability, giving the customer a track 
record of the assembly process. This is espe-
cially important for the automotive industry, 
where car quality and safety are so important. 
A final example of new innovation is for 
the road construction equipment segment, 
where we have created a system used in our 
new Atlas Copco Dynapac rollers that cuts 
fuel consumption and CO2 emissions by 
ensuring that only the amount of power  
necessary at any given point is used. 
Strong service for reliable machines 
Our service business continues to make  
good progress since 2008 when Compressor 
Technique got its own dedicated service divi-
sion and 2011 when the other business areas  
followed. We now have almost 13 000 service 
employees in the Group and together with 
our indirect channels we are covering the 
entire planet. All together, service generates 
“	All together, service generates 
43% of our revenue”
* Ford and F-150 are registered trademarks of Ford Motor Corporation.

PRESIDENT AND CEO
Atlas Copco 2014
5
Ronnie Leten 
President and CEO
Stockholm, January 29, 2015
43% of our revenue. We are expanding the use 
of Smartlink, a new data monitoring system 
for our compressors that alerts us exactly 
when the equipment needs service – a win-win 
situation for both customers and us.
Customers want to know that their 
machines will run smoothly as it can be  
very costly to have equipment not working. 
With our service the customer can rest 
assured we will safeguard that the installa-
tion runs when needed.
We must show more Atlas Copco  
customers that they will truly benefit from 
letting us – who, after all, know the equip-
ment best – do the work. We strive to service  
virtually all of the equipment we have sold. 
Operational excellence at all times 
Atlas Copco is constantly seeking to 
improve operations. We are connecting our 
colleagues around the globe, shortening 
assembly times and speeding up delivery 
while making it more reliable. Sometimes we 
have to consolidate manufacturing. At other 
times, unfortunately, we have to reduce the 
workforce, which was the case last year in the 
Mining and Rock Excavation Technique 
business area. To stay competitive, we must 
remain asset light and agile. To improve  
customer interaction and support, we are 
modernizing and digitalizing our operations, 
starting in Europe. 
Operational excellence also involves  
providing a safe work environment for  
all our colleagues with no work-related  
accidents. A healthy and motivated work-
force is key to success. 
We stay committed to the UN Global 
Compact, which is reflected in our own  
Business Code of Practice. We believe 
that working with human rights, labor,  
environment and anti-corruption also  
creates long-lasting business value.  
Leaders in sustainability have been shown  
to outperform financially, and we are proud 
to be included once again in the annual 
Global 100 list and Dow Jones Sustainability 
Indices. We were ranked number seven  
globally in the Newsweek Green Rankings, 
one of the world’s foremost scorings on  
corporate sustainability.
Commitment and competence 
We keep investing in employee training,  
convinced that we will have a competitive 
edge if our people master their tasks faster 
as they then can create more value for our 
customers. One example of this idea, which 
we call reducing the time to competence, is 
highlighted in the Construction Technique 
business area. One of its challenges had been 
how to efficiently train its technicians and 
sales people all over the world, considering 
they are speaking so many languages. Now, 
every time the business area launches a new 
product it will make a visually attractive 
video of the machines with neutral language 
that all can understand. All staff will see  
the videos before visiting customers. The 
customers benefit from interacting with 
knowledgeable Atlas Copco representatives 
who can find the best solutions to enhance 
productivity.  
Atlas Copco seeks to attract competent 
colleagues who are eager to grow, and we 
want the workforce to be diverse when it 
comes to gender, age and nationalities. For 
the first time in our history, the ratio of 
female managers in the Group reached the 
same ratio as for female employees, about 
17%. The 417 most senior managers repre-
sent 54 nationalities, reflecting our ambition 
to use the full global talent pool. 
Keep growing stronger 
I am confident Atlas Copco will continue  
to grow stronger by using these five strategic 
pillars to make customers more productive. 
The global long-term trends are on our  
side, including the industry’s energy effi-
ciency and productivity requirements, as 
well as urbanization that prompts infra-
structure investments. This will support 
growth in Asia, South America and Africa, 
which have experienced some recent softer 
business conditions. North America looks 
solid, and Europe has a good chance to 
finally reconnect with growth. 
We will expand our four business areas 
without stretching too far away from our 
core. We will keep expanding our market 
presence and further professionalize our  
service business, which still has great growth 
opportunities. 
Finally
We remember fondly the great Peter Wallen-
berg, our Honorary Chairman who passed 
away early this year. Peter will be remem-
bered as the most committed Atlas Copco 
promoter and supporter ever. He was a true 
inspiration for me personally and for count-
less former colleagues and friends in Atlas 
Copco during his more than 61 active years 
with the Group. 
Thank you to all our customers, business 
partners, employees, and shareholders for 
your loyalty and trust. We are a proud team, 
especially when we create productivity for 
our customers.
“ To stay competitive we must remain  
asset light and agile”

6
Atlas Copco 2014
THIS IS ATLAS COPCO
VISION, MISSION AND STRATEGY
The Atlas Copco Group’s vision is to become and remain First in Mind—First in Choice ®  
of its customers and other principal stakeholders. The mission is to achieve sustainable,  
profitable development. Sustainability plays an important role in Atlas Copco’s vision and  
it is an integral aspect of the Group’s mission. 
An integrated sustainability strategy, backed by ambitious goals, helps the company 
deliver greater value to all its stakeholders in a way that is economically, environmentally and 
socially responsible. In order to achieve the mission, the Board of Directors has adopted a 
number of goals. Strategies and achievements are presented throughout this annual report. 
Creating value for all stakeholders
The goals that were introduced in 2011 all aim at continuously delivering sustainable, profit-
able development for the Group. This means an increased economic value creation and,  
simultaneously, a positive impact on society and the environment, thus creating shared value. 
To achieve this, five strategic pillars have been defined as crucial.
Atlas Copco is a world-leading provider of sustainable productivity solutions. 
The Group serves customers with innovative compressors, vacuum solutions 
and air treatment systems, construction and mining equipment, power tools 
and assembly systems. Atlas Copco develops products and service focused 
on productivity, energy efficiency, safety and ergonomics. 
	
For further information about  
governance, the Board of Directors and  
Group Management, see pages 56–65.
 
	
For further information about risk  
management, see pages 36–39.
	
For comprehensive information about 
the business areas, see pages 20–35.
STRATEGIC PILLARS  
FOR SUSTAINABLE  
PROFITABLE GROWTH
PRESENCE
Increase market presence and penetration and  
expand the product and service offering in selected  
market segments. 
INNOVATION
Invest in research and development and continuously  
launch new products and services that increase  
customers’ productivity.
SERVICE
Increase the service offer, perform service on a  
higher share of the installed base of equipment  
and give customers peace of mind.
OPERATIONAL EXCELLENCE
Continuously strive for improved operational  
performance with an efficient and responsible use  
of resources – human, natural and capital.
PEOPLE
Attract, recruit and develop skilled coworkers and  
find ways to reduce their time to competence.

THIS IS ATLAS COPCO
Atlas Copco 2014
7
INTERACTION
We interact with and develop close relationships with customers,  
internally and externally, as well as with other stakeholders.  
While we interact in many different ways, we believe that personal 
contacts are always the most efficient.
INNOVATION
Our innovative spirit is reflected in everything we do. Customers  
expect the best from our Group and our objective is to consistently 
deliver high-quality products and service that increase our  
customers’ 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.
PRODUCTS, 
SERVICES & 
SOLUTIONS
First in Mind—First in 
Choice ® for customers 
and prospects for all 
brands
Increase customer  
loyalty
Increase customer  
energy efficiency  
by 20% by 2020*
Offer safe and reliable 
products and services
OPERATIONS
First in Mind—First in 
Choice ® employer for 
current and future 
employees
Competence develop­
ment to achieve good 
results and yearly 
coaching/appraisals for  
all employees
Increase diversity in both 
gender and nationality
Encourage internal 
mobility
Safe and healthy  
working environment  
for all employees
Zero work-related 
accidents 
Sick leave below 2.5%
No corruption  
or bribes
Work with business 
partners committed  
to high ethical, 
environmental and social 
standards
Develop new products  
and services with a life 
cycle perspective
Construct Atlas Copco 
buildings according to 
sustainable building 
standards
Decrease CO2 emissions 
from operations by 20%  
in relation to cost of sales 
by 2020*
Decrease CO2 emissions 
from transport of goods 
by 20% in relation to cost 
of sales by 2020*
Keep water consumption  
at current level*
Reuse or  
recycle waste
FINANCIALS
Annual revenue growth  
of 8% over a business 
cycle
Sustained high return  
on capital employed
All acquired businesses  
to contribute to economic 
value added
Annual dividend 
distribution about 50%  
of earnings per share
* Base year 2010
The operational goals  
focus on people manage-
ment, environ­mental 
achievements, health and 
safety, and on business 
ethics and integrity.
The financial goals aim  
to support increased  
economic value creation.
The customer-focused 
goals safeguard market 
expansion as well as  
customer satis­faction  
and loyalty. Atlas Copco 
delivers energy efficient, 
productive, safe and  
reliable products and  
service at all times.
GOALS FOR SUSTAINABLE, PROFITABLE DEVELOPMENT
THERE  IS ALWAYS A BETTER WAY
OUR CORE VALUES
Our core values reflect how we behave internally  
and in our relationships with external stakeholders.

THIS IS ATLAS COPCO
8
Atlas Copco 2014
THE ATLAS COPCO GROUP IS UNIFIED  
AND STRENGTHENED THROUGH …
A shared vision and a common identity
The sharing of brand  
names and trademarks
The sharing of resources  
and infrastructure
Common processes and shared  
best practices collected in the  
database The Way We Do Things
Shared financial and human  
resources, and their free mobility
The corporate culture and the core 
values: interaction, commitment, 
and innovation
A common leadership model
Common service providers

THIS IS ATLAS COPCO
Atlas Copco 2014
9
The business areas are responsible for developing 
their respective operations by implementing and 
following up on strategies and objectives to 
achieve sustainable, profitable development. 
The divisions are separate operational units, 
each responsible for delivering results in line 
with the strategies and objectives set by the 
business area. Each division has global responsi-
bility for a specific product or service offering.  
A division can have one or more product compa-
nies (units responsible for product development, 
manufacturing and product marketing) and has 
several customer centers (units responsible for 
customer contacts, sales and service) dedicated 
or shared with other divisions.
Each business area has a service division with global responsibility for service  
of the products and solutions of the business area. 
Common service providers – internal or external – have been established  
with the mission to provide services faster, to a higher quality, and at a lower cost,  
thus allowing the divisions to focus on their core businesses.
The Board of Directors is responsible for the  
organization and management of the Group,  
regularly assessing the Group’s financial situation 
and financial, legal, social and environmental 
risks, and ensuring that the organization is de-
signed for satisfactory control. The Board formally 
approves the Business Code of Practice.
The President and CEO is responsible for the  
ongoing management of the Group following  
the Board’s guidelines and instructions. He is  
responsible for ensuring that the organization 
works towards achieving the goals for sustaina-
ble, profitable development. 
innovation. All employees are expected to 
contribute by committing themselves to 
Group goals and to their individual perfor-
mance targets. Atlas Copco’s definition of 
good leadership is the ability to create lasting 
results.
PROCESSES
Group-wide strategies, processes, principles, 
guidelines, and shared best practices are 
collected in the database The Way We Do 
Things. It covers governance, safety, health, 
environment and quality, accounting and 
business control, treasury, tax, audit and 
internal control, information technology, 
people management, legal, communications 
and branding, crisis management, adminis-
trative services, insurance, standardization, 
and acquisitions. The information is stored 
electronically and is available to all employ-
ees. Although most of the processes are self-
explanatory, training on how to implement 
the processes is provided to managers on a 
regular basis. Wherever they are located, 
Atlas Copco employees are expected to 
operate in accordance with the processes, 
principles, and guidelines provided.
STRUCTURE AND 
GOVERNANCE
Atlas Copco’s organization is based on the 
principle of decentralized responsibilities 
and authorities. Atlas Copco’s operations 
are organized in four business areas com-
prised of 23 divisions. Each operating unit 
has a business board which reflects the oper-
ational structure of the Group. The duty of 
a business board is to serve in an advisory 
and decision-making capacity concerning 
strategic and operative issues. It also ensures 
the implementation of controls and assess-
ments. In addition, each legal company has  
a legal board focusing on compliance and 
reflecting the legal structure of the Group.
PEOPLE
Atlas Copco’s growth is closely related to 
how the Group succeeds in being a good 
employer, attracting, developing, and keep-
ing qualified and motivated people. With a 
global business conducted through numer-
ous companies, Atlas Copco works with 
continuous competence development, 
knowledge sharing and implementing the 
core values: interaction, commitment, and 
We stand by our responsibilities  
towards our customers, towards the  
environment and the people around  
us. We make performance stand the  
test of time. This is what we call  
– Sustainable Productivity.
Group Management and corporate functions
Compressor  
Technique
Mining and Rock  
Excavation Technique 
Industrial  
Technique
Construction  
Technique 
BUSINESS AREAS
Compressor  
Technique Service 
Industrial Air
Oil-free Air
Vacuum Solutions
Gas and Process
Medical Gas Solutions
Airtec
Mining and Rock  
Excavation Service
Underground Rock  
Excavation
Surface and Exploration  
Drilling
Drilling Solutions
Rock Drilling Tools
Rocktec
Industrial Technique  
Service 
MVI Tools and  
Assembly Systems
General Industry  
Tools and Assembly  
Systems
Chicago Pneumatic  
Tools
Industrial Assembly  
Solutions
Construction  
Technique Service 
Specialty Rental
Portable Energy
Road Construction 
Equipment
Construction Tools
Divisions generally conduct business through product companies, 
distribution centers and customer centers
BOARD OF DIRECTORS
PRESIDENT AND CEO
ORGANIZATION
DIVISIONS

THIS IS ATLAS COPCO
10
Atlas Copco 2014
Sales and service
Customer focus is a guiding principle for 
Atlas Copco. The ambition is to have close 
relationships with end customers and to help 
them increase their productivity in a sustain-
able way. Sales and service is primarily direct, 
but complemented by alternative sales chan-
nels, e.g. through distri­butors, to maximize 
presence in the market. The Group has sales 
in more than 180 countries and about 80%  
of sales are made directly to the end user.
Sales of equipment are performed by 
engineers with strong application knowledge 
and the ambition to offer the best solution for 
the customer’s specific application. Service 
and maintenance performed by skilled techni-
cians is an integral part of the offer. Service  
THIS IS HOW WE DO BUSINESS
Atlas Copco is characterized by focused businesses, a global presence with direct sales 
and service, a strong, stable and growing service business, professional people, and  
an asset-light and flexible manu­facturing setup. Atlas Copco is committed to sustainable 
productivity, which means that we do everything we can to ensure reliable, lasting  
results with responsible use of resources – human, natural and capital.
PRIMARY DRIVERS OF REVENUES
EQUIPMENT
SERVICE
INDUSTRY
Industrial machinery  
investment
Industrial  
production
CONSTRUCTION
Investment in  
infrastructure
Construction  
activity 
MINING
Mining  
machinery investment
Metal and ore  
production
is the responsibility of dedicated divisions  
in each business area. The responsibility 
includes development of service products, 
sales and marketing, technical support as  
well as service delivery and follow-up. 
Stable service business
More than 40% of revenues are generated 
from service (spare parts, maintenance, 
repairs, consumables, accessories, and 
rental). These revenues are more stable than 
equipment sales and provide a strong base 
for the business. 
Increase customer loyalty
Every day, and following sales and/or service 
interactions with Atlas Copco, thousands of 
customers receive surveys where they are 
asked to give their opinion. Customers are 
often engaged in discussions about their 
feedback in order to solve problems and to 
improve products and services. A number of 
key performance indicators have been estab-
lished, such as the availability of spare parts, 
which are continuously followed up to 
ensure that customer satisfaction improves. 
Manufacturing and logistics
The manufacturing philosophy is to manu­
facture in-house those components that are 
critical for the performance of the equip-
ment. For non-critical components, Atlas 
Copco leverages the capacity and the compe-
tence of business partners and cooperates 
with them to continuously achieve product 
and process improvements. Approximately 
75% of the production cost of equipment 
represents purchased components and about 
25% are internally manufactured core com-
ponents, assembly costs and overhead. 
Equipment represents less than 60% of 
revenues and Atlas Copco has organized its 
manufacturing and logistics to be able to 
quickly adapt to changes in equipment 
demand. The manufacturing of equipment 
is primarily based on customer orders and 
only some standard, high volume equipment 
is manufactured based on projected demand. 
The assembly of the equipment is to a 
large degree carried out in own facilities. The 
assembly is typically lean and flow oriented 
and the final product is normally shipped 
directly to the end user. The organization 
works continuously to use human, natural or 
capital resources more efficiently. 
Innovation
Atlas Copco believes that there is always a 
better way of doing things. Innovation and 
product development are very important 
and all products are designed internally.  
A key activity is to design new or improved 
products that provide tangible benefits in 
terms of productivity, energy efficiency and/
or lower life cycle cost to the customer, and 
at the same time can be efficiently produced.

THIS IS ATLAS COPCO
Atlas Copco 2014
11
Atlas Copco protects technical innovations 
with patents. 
Innovation also includes better processes 
to improve the flow and utilization of assets 
and information. Innovation will improve cus-
tomer satisfaction and contribute to strength-
ening customer relations, the brand, as well as 
financial performance. Overcapacities and 
inefficiencies must always be challenged. 
Investments in fixed assets and  
working capital
The needed investments in property, plant 
and equipment are moderate in size due to 
the manufacturing philosophy and can be 
adapted in the short and medium term to 
changes in demand. Most investments are 
related to machining equipment for core 
manufacturing activities and to production 
facilities, primarily for core component  
manufacturing and for assembly operations. 
The working capital requirements of the 
Group are affected by the direct sales and 
service model, which affects the amount of 
inventory and receivables, as well as by the 
manufacturing philosophy. In an improving 
VOLUME/PROFIT
TIME
DETERIORATING BUSINESS CLIMATE
Reduce variable costs
Working capital reduction
IMPROVING BUSINESS CLIMATE
Add variable costs
Working capital increase
Small incremental investments
AGILE AND RESILIENT OPERATIONAL SETUP
RESILIENCE
business climate with higher volumes, more 
working capital will be tied up. If the busi-
ness climate deteriorates, working capital 
will be released. 
Acquisitions
Acquisitions are primarily done in, or very 
close to, the already existing core businesses. 
All divisions are required to map and evalu-
ate businesses that are adjacent and can offer 
tangible synergies with the existing busi-
nesses. All acquired businesses are expected 
to make a positive contribution to economic 
value added.
Human capital
Atlas Copco strives to be a good employer  
to attract, develop, and keep qualified and 
motivated people. Employees are respon­sible 
for their own professional career and sup-
ported by continuous competence develop-
ment and an internal job market. Employees 
are encouraged to grow professionally and 
take up new positions.
If the company needs to adapt capacity 
in a deteriorating business climate, the first 
action is to stop recruitment. Layoffs are  
the last resort.
THE BUSINESS CODE OF PRACTICE 
The internal policy documents related to business ethics and 
social and environmental performance are summarized in the 
Atlas Copco Business Code of Practice. All employees and 
managers in Group companies, as well as business partners, 
are expected to adhere to these policies.

12
Atlas Copco 2014
THIS IS ATLAS COPCO
CREATING VALUE FOR         
RESOURCES
HUMAN CAPITAL
44 000
EMPLOYEES
CAPITAL EMPLOYED
MSEK 70 953
MSEK 2 765 
Net investments in tangible  
fixed assets
MSEK 14 114 
Invested in new businesses*
75%
of product cost  
is purchased material 
and components
+30%
R&D expenditures 
amounted to  
MSEK 2 991
RAW MATERIAL
121 984
tonnes of iron and steel were used in 2014
477 GWh
total energy use
34%
of the energy 
consumption came  
from renewable 
resources 
 * Enterprise value of acquired businesses, see note 2
VALUE CREATING ACTIVITIES
Time to competence to minimize  
the time it takes to transform  
knowledge into performance     PAGE 47
41 hours
average training  
hours per employee
Local presence with a global 
reach – spanning more than180 countries
50%
of employees  
work in marketing,  
sales or service
Diversity stimulates innovation,  
and improves the ability to  
work cross culturally                       PAGE 45
LEAN MANUFACTURING
Asset light and flexible manufacturing setup
4 915 
SIGNIFICANT SUPPLIERS
 – we leverage the competence 
of business partners
ACQUISITIONS OFFER TANGIBLE SYNERGIES  
WITH THE EXISTING BUSINESSES.
Product development from a lifecycle perspective   PAGE 43
LOGISTICS EFFICIENCY 
Consolidating deliveries and reduced use of air freight 
PAGE 53

Atlas Copco 2014
13
THIS IS ATLAS COPCO
      ALL STAKEHOLDERS
OUR ACHIEVEMENTS 
Improvement in  
energy efficiency for  
surface drill rigs 
 
+17% 
PAGE 42
–9%
CO2 emissions from  
transport in relation  
to cost of sales
–3.8%
energy consumption  
in operations in  
relation to cost of sales
CERTIFICATIONS
95% ISO 9001
96% ISO 14001
91% OHSAS 18001
93%
of waste was  
reused, recycled  
or recovered
PAGE 53
Reduction of accidents per  
million working hours to 
 
4.7 (2013: 5.4)
PAGE 46
Women in  
Atlas Copco’s  
workforce:
17.1%
(2013: 16.8%)
54
nationalities in the 417  
most senior managers
(2013: 52 nationalities)
READ MORE ON PAGE 45
Annual total  
return on the  
Atlas Copco A  
share for the  
past ten years 22%
        PAGE 54
24%
RETURN ON  
CAPITAL  
EMPLOYED
MSEK 13 869
OPERATING CASH FLOW 
(2013: MSEK 9 888)
Acquisitions are expected to make a positive  
contribution to economic value added. 
MSEK 1 662
Operating profit from acquisitions  
PAGE 79
63%
Business 
partners
23%
Employees
9%
Shareholders 
and other 
providers of 
capita
5%
Governments  
(taxes)
Distribution of direct economic value
PAGE 51
Atlas Copco has a vision to become and remain First in Mind—First in Choice® for all of its stakeholders. Our 
goals aim at continuously delivering sustainable, profitable development for the Group. This means an increased 
economic value creation and, simultaneously, a positive impact on society and the environment, thus creating 
shared value. 
On this spread, we illustrate how we with responsible use of resources – human, natural and capital – create 
value for customers, employees, business partners, shareholders, as well as for the society and the environment.

14
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
MARKET REVIEW AND DEMAND 
DEVELOPMENT
The overall demand for Atlas Copco’s equipment and services improved 
somewhat in 2014. The order intake of small and medium-sized com-
pressors to the manufacturing industry increased, while orders for large 
compressors for the process industry decreased. The order intake for 
vacuum solutions was strong. The orders received for industrial tools 
and assembly systems increased, supported by investments from the 
motor vehicle, aerospace and electronics industries. The demand for con-
struction equipment for infrastructure and civil engineering work 
was relatively soft and orders were largely unchanged. The demand for 
mining and rock excavation equipment remained at a low level and the 
order volumes were slightly lower compared to the previous year.
The service business continued to develop positively. Service  
and parts had an organic growth of nearly 5%. The specialty rental 
business also had a positive development, while consumables for  
mining and civil engineering had a negative development.
See also business area sections on pages 20–35.
The Group’s order intake increased 15% to a record MSEK 93 873 
(81 290). The organic order growth was 1%, more favorable exchange 
rates contributed with 2% and acquisitions with 12%, of which 11% 
was attributable to Edwards.
North America
The order intake in local currencies in North America increased 26% 
and 10% excluding Edwards. Primarily the United States, but also 
Canada and Mexico achieved growth. The order volumes increased 
for industrial tools and assembly systems, for construction and  
mining equipment as well as for small- and medium-sized industrial  
compressors, while they were lower for large compressors. The service 
business grew in all business areas. In total, North America 
accounted for 23% (20) of orders received. 
South America
The South American orders increased 6% in local currencies. The 
order intake increased for all business areas, except for Construction 
Technique. The service business grew in all business areas. In total, 
South America accounted for 9% (10) of orders received. 
Europe
The orders received in local currencies in Europe increased 10% and 
4% excluding Edwards. All business areas achieved low single digit 
organic growth. Geographically, there were small differences between 
the markets. The order volumes in southern and eastern Europe grew 
compared to the low levels of the previous year, while the order vol-
umes in northern and western Europe remained fairly stable. The  
service business grew in all business areas. In total, Europe accounted 
for 30% (32) of orders received. 
Africa/Middle East
Orders received decreased 1% in local currencies in the Africa/Middle 
East region, which accounted for 10% (11) of the Group’s orders 
received. The order intake increased for industrial compressors and 
tools and for construction equipment, but decreased for mining 
equipment. The service business grew in all business areas, except in 
Mining and Rock Excavation Technique.
Asia/Australia
The orders received in local currencies in Asia/Australia increased 
15%, but decreased 4% excluding Edwards. The investments in indus-
trial tools and assembly systems increased and Industrial Technique 
achieved healthy growth. Also, the order intake for vacuum solutions 
were strong in the region, supported by good demand from the semi-
conductor industry. The order intake for industrial compressors, 
mining and construction equipment, however, decreased, negatively 
impacted by low investments in China, India and in several countries 
in South East Asia. The service business for industrial compressors 
and tools continued to grow at a high pace in the region. The service 
business for mining was stable, whereas it decreased for construction 
equipment. In total, Asia/Australia accounted for 28% (27) of  
orders received.
SALES BRIDGE
Atlas Copco Group
Orders received
Orders on hand, December 31
Revenues
2012
90 570
24 020
90 533
Structural change, %
+1
 
+1
Currency, %
–4
 
–4
Price, %
+1
 
+1
Volume, %
–8
 
–5
Total, %
–10
 
–7
2013
81 290
19 263 
83 888
Structural change, %
+12
 
+12
Currency, %
+2
 
+2
Price, %
+1
 
+1
Volume, %
+0
 
–3
Total, %
+15
 
+12
2014
93 873
22 830
93 721
Orders received, MSEK
Operating margin, %
Revenues, MSEK
0
20 000
40 000
60 000
80 000
100 000
2014
2013
2012
2011
2010
0
5
10
15
20
25
MSEK
%
ORDERS RECEIVED, REVENUES  
AND OPERATING MARGIN
THE YEAR IN REVIEW
Near-term demand outlook 
Published January 29, 2015  
The overall demand for the Group is  
expected to increase somewhat.

Atlas Copco 2014
15
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Market presence
The presence was further strengthened with the addition of sales and 
service engineers in many markets. 
Atlas Copco had own customer centers in 91 (92) countries and 
production facilities in 30 (23) countries on five continents at the end 
of the year. Revenues were reported in 185 (182) countries. 
ORDERS  
RECEIVED BY  
CUSTOMER  
CATEGORY
Other, 8%
Manufacturing, 33%
Construction, 
20%
Service, 5%
Mining, 20%
Process 
industry, 14%
IMPORTANT EVENTS
Acquisitions and divestments
The Group completed seven acquisitions during the year, which 
added net revenues of MSEK 9 322 in 2014. The most significant  
was Edwards Group Ltd., a leading global supplier of vacuum and 
abatement solutions, with revenues in 2014 of MSEK 8 535. See also 
note 2 and business area sections on pages 20–35. 
Investments in innovation
The amount invested in product development, including capitalized 
expenditures, increased 30% to MSEK 2 991 (2 306) corresponding
to 3.2% (2.7) of revenues. The increase was primarily due to acquisi-
tions. The number of employees in research and development 
increased with 18%. Most of the employees are based in Europe,  
but the rate of increase in Asia was high.
Investments in manufacturing and distribution  
and capacity adjustments
The Group’s increased investments in property, plant and equipment 
of MSEK 293 to MSEK 1 548 was primarily related to acquired busi-
nesses but also included other investments, such as investments in a 
new regional distribution center in China. Several actions to adjust 
capacity to the lower demand for mining equipment were imple-
mented, including consolidation of some manufacturing facilities. 
Consolidation of manufacturing was also made in the Compressor 
Technique business area. 
Certifications on quality, environment, health and safety
In September 2012, Atlas Copco decided that all product companies, 
as well as all sites with 70 or more employees shall have ISO 9001, 
ISO 14001 and OHSAS 18001 certifications. The goal was not fully 
achieved in 2014, but all sites have initiated the certification process. 
Changes in Group Management
Nico Delvaux was appointed President of the Compressor Technique 
business area as from August 1, 2014. He was previously President of 
the Construction Technique business area and replaced Stephan 
Kuhn, who left the Group. 
Andrew Walker was appointed President of the Construction 
Technique business area and member of Group Management, effec-
tive September 15, 2014. He was previously President of the Service 
division in the Compressor Technique business area and replaced 
Nico Delvaux, who was appointed president of the Compressor 
Technique business area.
Recognitions
Atlas Copco achieved the following recognitions: inclusion in  
Dow Jones Sustainability World Index and FTSE4Good; included as 
one of the 100 most innovative companies in the world by Forbes; 
and ranked 23 among the world’s top sustainable companies by 
Global 100.
FINANCIAL SUMMARY AND ANALYSIS
KEY FINANCIAL DATA, MSEK
2014
2013
Orders received
93 873
81 290
Revenues
93 721
83 888
EBITDA
20 724
19 759
Operating profit
17 015
17 056
– in % of revenues
18.2
20.3
Adjusted operating profit
17 744
16 993
- in % of revenues
18.9
20.3
Profit before tax
16 091
16 266
– in % of revenues
17.2
19.4
Profit for the year
12 175
12 082
Basic earnings per share, SEK
10.01
9.95
Diluted earnings per share, SEK
9.99
9.92
SALES BRIDGE
Compressor  
Technique
Industrial  
Technique
Mining and Rock  
Excavation Technique
Construction  
Technique
Orders received
Revenues
Orders received
Revenues
Orders received
Revenues
Orders received
Revenues
2012
33 480
32 725
9 435
9 566
33 482
34 054
14 607
14 658
Structural change, %
+1
+1
+2
+1
+1
+1
+1
–1
Currency, %
–4
–4
–3
–3
–5
–5
–5
–5
Price, %
+1
+1
0
0
+3
+2
+1
+1
Volume, %
–3
–1
+3
+1
–21
–13
+1
0
Total, %
–5
–3
+2
–1
–22
–15
–2
–5
2013
31 765
31 782
9 594
9 501
26 092
29 013
14 260
13 967
Structural change, %
+28
+28
+6
+8
+1
+1
+1
+1
Currency, %
+4
+4
+5
+5
+0
+0
+2
+3
Price, %
+1
+1
+0
+1
+1
+1
+1
+1
Volume, %
+0
+0
+7
+7
–3
–13
+0
+1
Total, %
+33
+33
+18
+21
–1
–11
+4
+6
2014
42 249
42 165
11 335
11 450
25 752
25 718
14 847
14 739

16
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Revenues
The Group’s revenues increased by 12% to a record MSEK 93 721 
(83 888). The goal is to achieve annual revenue growth of 8% over  
a business cycle. In the past 10 years, the compound annual growth 
rate has been 8.1%. If the divested businesses related to equipment  
rental are excluded, the compound annual growth rate has been 
approximately 11%.
The Group’s goal 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 
competitors. Growth should 
primarily be organic,  
supported by selective  
acquisitions.
0
2
4
6
8
10
12
2010–2014
2005–2014
1995–2014
%
Goal
ANNUAL REVENUE GROWTH RATE
Operating profit
The operating profit was MSEK 17 015 (17 056), corresponding to a 
margin of 18.2% (20.3). Items affecting comparability were MSEK 
–729 (63) and the adjusted operating margin was 18.9% (20.3). See 
also the bridge below. 
The operating profit for the Compressor Technique business area 
increased 23% to MSEK 8 974 (7 279) and was affected by items 
affecting comparability of MSEK –180. The adjusted margin was 
21.7% (22.9) and was negatively affected by dilution from acquisi-
tions and by investments in the sales and service organization. 
The operating profit for the Industrial Technique business area 
increased 20% to MSEK 2 557 (2 138), corresponding to a margin of 
22.3% (22.5). The operating margin was supported by higher vol-
umes, but was negatively affected by dilution from acquisitions. 
The operating profit for the Mining and Rock Excavation Technique 
business area decreased 29% to MSEK 4 307 (6 083), including 
impairment of assets and restructuring costs of MSEK 415 (120) and 
corresponding to a margin of 16.7% (21.0). The adjusted operating 
margin was 18.4% (21.4) and was impacted negatively by lower vol-
umes and dilution from acquisitions, but was supported by currency.
The operating profit for the Construction Technique business 
area increased 2% to MSEK 1 768 (1 733), corresponding to a margin  
of 12.0% (12.4). The margin was negatively affected by product mix, 
but supported by currency.
Costs for common Group functions and eliminations increased  
to MSEK –591 (–177), including the effect from the provision for share-
related long-term incentive programs of MSEK –174 (–62) and an 
insurance reimbursement of MSEK 40. Previous year’s includes a gain 
of MSEK 90 related to a divestment of the captive insurance operations 
in Luxembourg and an insurance reimbursement of MSEK 155.
Depreciation and EBITDA
Depreciation and amortization increased to MSEK 3 709 (2 703), 
mainly due to acquisitions. Earnings before depreciation and amorti-
zation, EBITDA, was MSEK 20 724 (19 759), corresponding to a 
margin of 22.1% (23.6).
Net financial items
The Group’s net financial items totaled MSEK –924 (–790). The net 
interest expense decreased to MSEK –699 (–730). Other financial 
items were MSEK –225 (–60). See note 9 and 27.
Profit before tax
Profit before tax was MSEK 16 091 (16 266), corresponding to a 
profit margin of 17.2% (19.4). 
Taxes
Taxes for the year amounted to MSEK 3 916 (4 184), corresponding 
to an effective tax rate of 24.3% (25.7) in relation to profit before tax. 
See note 9. 
BRIDGE – REVENUES AND OPERATING PROFIT
MSEK
2014
Volume, 
price, mix 
and other
Currency
Acquisitions
Restructuring 
and capital 
gain
Share based 
long-term 
incentive 
programs
2013
Revenues
93 721
–2 032
2 035
9 830
–
–
83 888
Operating profit
17 015
–1 539
670
1 570
–630
–112
17 056
Effect on margin, %
18.2
–1.2
+0.3
–0.4
–0.7
–0.1
20.3
Revenues
Operating  
profit
Operating  
margin, %
Return on capital 
­employed, %
Investments  
in tangible  
fixed assets 1)
MSEK
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
Compressor Technique
42 165
31 782
8 974
7 279
21.3
22.9
40
65
639
299
Industrial Technique
11 450
9 501
2 557
2 138
22.3
22.5
36
42
270
121
Mining and Rock Excavation Technique
25 718
29 013
4 307
6 083
16.7
21.0
29
41
967
912
Construction Technique
14 739
13 967
1 768
1 733
12.0
12.4
12
13
939
959
Common Group functions/eliminations
–351
–375
–591
–177
 
 
 
 
452
420
Total Group
93 721
83 888
17 015
17 056
18.2
20.3
24
28
3 267
2 711
1)  Excluding assets leased.
The operating margin decreased to 
18.2% (20.3). It was negatively affected 
by volume, increased operational costs, 
dilution from acquisitions, and items  
affecting comparability. The effect from 
price and currency was positive.

Atlas Copco 2014
17
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Profit and earnings per share
Profit for the year increased 1% to MSEK 12 175 (12 082), whereof 
MSEK 12 169 (12 072) and MSEK 6 (10) attributable to owners of 
the parent and non-controlling interests, respectively. Basic and 
diluted earnings per share were SEK 10.01 (9.95) and SEK 9.99 
(9.92), respectively.
Balance sheet
BALANCE SHEET IN SUMMARY
MSEK
December 31, 2014
December 31, 2013
Intangible assets
33 197
32%
17 279
19%
Rental equipment
3 177
3%
2 420
3%
Other property, plant and 
equipment
9 433
9%
6 907
8%
Other fixed assets
3 530
3%
3 401
4%
Inventories
18 364
17%
16 826
19%
Receivables
26 015
25%
21 726
25%
Current financial assets
2 150
2%
1 697
2%
Cash and cash equivalents
9 404
9%
17 633
20%
Assets classified  
as held for sale
11
0%
2
0%
Total assets
105 281
100%
87 891
100%
Total equity
50 753
48%
39 794
45%
Interest-bearing liabilities 
26 997
26%
27 006
31%
Non-interest-bearing liabilities
27 531
26%
21 091
24%
Total equity and liabilities
105 281
100%
87 891
100%
The Group’s total assets increased by 20% to MSEK 105 281 (87 891). 
Acquisitions contributed with 19%, currency translation effects were 
11% and cash, cash equivalents and other current financial assets 
decreased about 9%. Excluding these effects, the assets decreased by 
approximately 1% for comparable units, primarily due to a net decrease 
in working capital. 
Equity
MSEK
2014
2013
Opening balance
39 794
34 185
Profit for the year
12 175
12 082
Other comprehensive income for the year
4 663
154
Shareholders’ transactions
–5 879
–6 627
Closing balance
50 753
39 794
Equity attributable to
 
 
– owners of the parent
50 575
39 647
– non-controlling interests
178
147
At year end, Group equity including non-controlling interests was 
MSEK 50 753 (39 794). Total comprehensive income for the year  
increased to MSEK 16 838 (12 236), primarily due to translation  
differences on foreign operations, see page 67 and note 10. Share-
holders’ transactions include dividends of MSEK –6 682 (–6 669), 
sales and repurchases of own shares of net MSEK 890 (24), change 
of non-controlling interests of MSEK 0 (85) and share-based pay-
ments of net MSEK –87 (–67). 
Equity per share was SEK 42 (33). Equity accounted for 48% (45) 
of total assets. Atlas Copco’s market capitalization at year end was 
MSEK 261 719 (213 348), or 516% (536) of net book value. The 
information related to public takeover bids given for the Parent  
Company, on page 19, is also valid for the Group.
Interest-bearing debt and net indebtedness
Total interest-bearing debt was MSEK 26 997 (27 006), whereof post-
employment benefits MSEK 2 531 (1 414). The Group has an average 
maturity of 5.1 years on interest bearing liabilities. See notes 21 and 
23 for additional information. 
The Group’s net indebtedness, adjusted with MSEK –15 (–172) 
for the fair value of related interest rate swaps, amounted to MSEK 
15 428 (7 504) at year end. The net debt/EBITDA ratio was 0.7 (0.4) 
and the debt/equity ratio was 30% (19). 
0
2
4
6
8
10
12
2014
2013
2012
2011
2010
0
10
20
30
40
50
60
SEK
Earnings per share, SEK
%
Return on equity, %
Weighted average cost of capital, %
0
10
20
30
40
50
60
2010–2014
2005–2014
1995–2014
%
Goal
Atlas Copco aims to have a strong but also 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 gener-
ation allow the Group to do that and at the same 
time have the ambition to distribute about 50% 
of earnings as dividends to shareholders.
Dividend policy history 
–2003	
30–40% of earnings 
2003–2011	 40–50% of earnings 
2011–	
about 50% of earnings
RETURN ON EQUITY AND 
EARNINGS PER SHARE
DIVIDEND/EARNINGS  
PER SHARE, AVERAGE

18
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Credit rating
Atlas Copco’s long-term and short-term debt is rated by Standard  
& Poor’s, Fitch and Moody’s with the long-/short-term rating A/A1, 
A/F1 and A2/P1, respectively.
Operating cash flow and investments
Operating cash surplus reached MSEK 20 426 (19 205). The working 
capital decreased by MSEK 2 056 (increased by 538), mainly due to 
an inventory reduction of MSEK 1 924. The net rental equipment 
increased by MSEK 1 303 (1 021). Net cash from operating activities 
amounted to MSEK 16 387 (11 867). 
Net investments in property, plant and equipment increased to 
MSEK –1 462 (–1 191), 97% (100) of annual depreciation. The 
increase was primarily related to the acquired businesses. Larger 
investments were made by Compressor Technique in the United 
Kingdom, China and South Korea and by Industrial Technique in 
the United States, Sweden and in Belgium. 
Net investments in intangible fixed assets, mainly related to capi-
talization of development expenditures, were MSEK –1 177 (–997). 
Change in other financial assets were MSEK +489 (–735), related to 
variations in the customer financing activities. Operating cash flow 
reached a record of MSEK 13 869 (9 888), equal to 15% (12) of 
Group revenues. 
The net cash flow from acquisitions and divestments in  
subsidiaries amounted to MSEK –8 415 (–1 549), primarily related  
to the acquisitions of Edwards and Henrob. See also note 2. 
Cash flow from financing
Dividends paid amounted to MSEK –6 682 (–6 669). Sales and  
repurchases of own shares equaled net MSEK 890 (24). Change  
in interest-bearing liabilities was MSEK –8 566 (4 113).
Working capital ratios
The ratio of inventories to revenues at year end decreased to  
19.6% (20.1) and trade receivables increased to 21.2% (19.8).  
The corresponding average ratios increased to 23.0% (20.9) and 
23.1% (19.3), respectively. Average trade payables in relation to  
revenues were 7.9% (7.8).
Capital turnover
The capital turnover ratio was 0.98 (0.98) and the capital employed 
turnover ratio was 1.32 (1.34). 
Return on capital employed and return on equity
Return on capital employed was 24.3% (27.8) and the return on 
equity 28.1% (33.6). The Group uses a weighted average cost of  
capital (WACC) of 8% (8) as an investment and overall performance 
benchmark.
Employees
In 2014, the average number of employees in the Atlas Copco Group 
increased by 3 486 to 43 645. At year end, the number of employees 
was 44 056 (40 241) and the number of full-time consultants/external 
workforce was 3 015 (2 137). For comparable units the total work-
force decreased by 407, while acquisitions added 5 100 for a total 
increase of 4 693. See also pages 44–47.
Average number of employees
2014
2013
Atlas Copco Group
43 645
40 159
– Sweden
4 315
4 497
– Outside Sweden
39 330
35 662
Business areas
 
 
– Compressor Technique
18 950
15 192
– Industrial Technique
5 128
4 553
– Mining and Rock Excavation Technique
12 392
13 347
– Construction Technique
5 780
5 714
– Common Group functions
1 395
1 353
0.0
0.5
1.0
1.5
2.0
2014
2013
2012
2011
2010
0
10
20
30
40
ratio
Capital employed turnover, ratio
%
Return on capital employed, %
0
3 000
6 000
9 000
12 000
15 000
2014
2013
2012
2011
2010
0
5
10
15
20
25
MSEK
Operating cash ﬂow, MSEK
%
Operating cash ﬂow as % of revenues
The Group’s goal is to continue  
to deliver high return on capital  
employed, by constantly striving  
for operational excellence and  
generating growth. All acquired  
businesses are expected to have  
a return on capital employed above 
the Group’s weighted average  
cost of capital.
0
5
10
15
20
25
30
35
2010–2014
2005–2014
1995–2014
0.0
0.5
1.0
1.5
2.0
%
Operating margin, %
Capital employed turnover, ratio
ratio
RETURN ON CAPITAL  
EMPLOYED, AVERAGE
CAPITAL EMPLOYED  
TURNOVER AND RETURN 
OPERATING CASH FLOW
31%
31%
24%

Atlas Copco 2014
19
THE YEAR IN REVIEW – ADMINISTRATION REPORT
PARENT COMPANY
Atlas Copco AB is the Parent Company of the Atlas Copco Group 
and is headquartered in Nacka, Sweden. Its operations include 
administrative functions, holding company functions as well as part 
of Group Treasury.
Earnings
Profit before tax totaled MSEK 4 589 (14 130). Profit for the year 
amounted to MSEK 3 792 (13 275). The lower profit was due to the 
decrease in internal dividends received. 
Financing
The total assets of the Parent Company were MSEK 102 778 
(113 896). At year end 2014, cash and cash equivalents amounted to 
MSEK 5 153 (13 302) and interest-bearing liabilities, excluding post-
employment benefits, to MSEK 57 688 (64 979), whereof the main 
part is Group internal loans. Equity represented 42% (41) of total 
assets and the undistributed earnings totaled MSEK 37 515 (41 194).
Employees
The average number of employees in the Parent Company was  
117 (109).
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 regarding 
remuneration and benefits to Group Management as approved by  
the Annual General Meeting 2014, and proposed changes to the 
guidelines are specified in note 5.
Risks and factors of uncertainty
Atlas Copco is subject to currency risks, interest rate risks and other 
financial risks. Atlas Copco has adopted a policy to control the  
financial risks to which Atlas Copco AB and the Group are exposed.  
A financial risk management committee meets regularly to take  
decisions about how to manage these risks. See also Risks, risk  
management and opportunities on pages 36–39.
Appropriation of profit
The Board of Directors proposes to the Annual General Meeting 
that a dividend of SEK 6.00 (5.50) per share, equal to MSEK 7 308 
(6 675), be paid for the 2014 fiscal year. The dividend is proposed to 
be paid in two equal installments, the first with record date April 30, 
2015 and the second with record date October 30, 2015. The pro-
posed payment periods will facilitate a more efficient cash manage-
ment. It is also proposed that the balance of retained earnings after 
the dividend be retained in the business as described below.
SEK
Retained earnings including reserve for fair value
33 722 834 000
Profit for the year
3 792 431 292
 
37 515 265 292
The Board of Directors proposes that these  
earnings be appropriated as follows:
 
To the shareholders, a dividend of SEK 6.00 per share
7 308 000 108
To be retained in the business
30 207 265 184
Total
37 515 265 292
Mandatory redemption of shares
Atlas Copco has generated significant operating cash flows in recent 
years and the Group’s financial position is strong. Without jeopardiz-
ing the capacity to finance further growth, the Board of Directors 
proposes to the Annual General Meeting a mandatory share redemp-
tion procedure, whereby every share is split into one ordinary share 
and one redemption share. The redemption share is then automati-
cally redeemed at SEK 6.00 per share. This corresponds to a total  
of MSEK 7 308. Combined with the proposed ordinary dividend, 
shareholders will receive MSEK 14 616.
The redemption is subject to approval at the Annual General 
Meeting 2015. The proposed preliminary record day for the share 
split is May 18, 2015. The payment of the redemption shares would, 
if approved, be made around June 15, 2015.
Shares and share capital
At year end, Atlas Copco’s share capital totaled MSEK 786 (786) 
and a total number of 1 229 613 104 shares divided into 839 394 096 
class A shares and 390 219 008 class B shares were issued. Net of 
11 111 717 class A shares and 501 379 class B shares held by Atlas 
Copco, 1 218 000 018 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. 
Investor AB is the single largest shareholder in Atlas Copco AB. 
At year end 2014 Investor AB held a total of 206 895 611 shares,  
representing 22% of the votes and 17% of the capital.
There are no restrictions which prohibit the right to transfer 
shares of the Company nor is the Company aware of any such agree-
ments. In addition, the Company is not party to any material agree-
ment that enters into force or is changed or ceases to be valid if the 
control of the Company is changed as a result of a public takeover 
bid. There is no limitation on the number of votes that can be cast  
at a General Meeting of shareholders.
As prescribed by the Articles of Association, the General Meet-
ing has sole authority for the election of Board members, and there 
are no other rules relating to election or dismissal of Board members 
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.

20
Atlas Copco 2014
COMPRESSOR TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
COMPRESSOR TECHNIQUE
KEY FIGURES, MSEK 
2014
2013
Change, %
Orders received
42 249
31 765
+33
Revenues
42 165
31 782
+33
Operating profit 
8 974
7 279
+23
Operating margin, %
21.3
22.9
 
Return on capital employed, %
40
65
 
Investments
 639
299
 
Average number of employees
18 950
15 192
 
The orders received for small and medium-
sized compressors increased and the service 
business continued to grow in 2014. The de-
mand for large compressors, however, was soft 
and orders decreased. Edwards, a technology 
and market leader in sophisticated vacuum 
products and abatement solutions, was  
acquired and the business area continued to  
invest in market presence, innovation and  
competence development.
ABOUT THE IMAGE:
Smartlink is an online compressed air monitoring program, which helps 
customers to predict maintenance needs, increase productivity and 
energy efficiency.

Atlas Copco 2014
21
COMPRESSOR TECHNIQUE – ADMINISTRATION REPORT
Other, 10%
Manufacturing, 46%
Construction, 
7%
Service, 8%
Mining, 2%
Process industry, 27%
ORDERS RECEIVED BY  
CUSTOMER CATEGORY
REVENUES BY REGION
Asia/
Australia, 34%
North
America, 23%
Africa/
Middle East,  6%
Europe, 32%
South
America, 5%
Business development
The order intake for stationary industrial 
compressors and air treatment equipment 
was somewhat lower compared to the previ-
ous year. Geographically, orders received  
for comparable units increased in North 
America and Europe, but decreased in Asia. 
The orders received for small and medium-
sized compressors increased while the order 
intake for large compressors, as well as for 
gas and process compressors and expanders, 
decreased. The service business continued to 
grow in all major markets, which contributed 
to the organic growth of 1%. Acquisitions, 
primarily the acquisition of Edwards, was 
the main contributor to the total order 
growth of 33%.
Market presence and organizational 
development
The business area continued to invest in  
market presence, particularly in service. For 
comparable units, the number of employees 
in service increased during the year, while the 
total number of employees was largely 
unchanged.
On January 1, 2014, the Specialty Rental 
division moved from the Compressor Tech-
nique business area to the Construction 
Technique business area. The objective is to 
strengthen growth by further developing 
product and service synergies. Historical 
data has been restated.
In July 2014, the plans to consolidate 
Quincy Compressor LLC’s two manufactur-
ing units into one single location in Alabama, 
the United States were announced. These 
plans affected 152 positions in Illinois  
and creates a number of new positions in 
Alabama. The transition will be concluded 
during 2015.
Nico Delvaux was appointed President of 
the Compressor Technique business area as 
from August 1, 2014. He was previously Presi-
dent of the Construction Technique business 
area and replaced Stephan Kuhn, who left the 
Group. 
Acquisitions
The business area made four acquisitions  
in 2014:
•	Edwards, a technology and market leader 
in sophisticated vacuum products and 
abatement solutions. The products and  
services are integral to manufacturing  
SHARE OF REVENUES 
Service, 37%
Equipment, 63%
processes, such as for semiconductors and 
flat panel displays, and are used within an 
increasingly diverse range of industrial 
applications. Edwards had revenues of 
MSEK 8 535 in 2014. 
•	Cavaletti, a Brazilian compressor dealer 
with a strong focus on service, with reve-
nues of MSEK 26 and 34 employees.
•	The compressor business of National 
Pump & Compressor Ltd. and McKenzie 
Compressed Air Inc. in the United States 
with, in total, about 120 employees.
•	A compressor distribution and service 
business in New Zealand. The business had 
combined revenues in fiscal year 2013 of 
approximately MNZD 30 (MSEK 162) 
and around 120 employees.
Revenues, profits and returns
Revenues increased 33% to MSEK 42 165 
(31 782) with a strong contribution from 
acquisitions. The organic growth was 1%. 
Operating profit increased 23% to MSEK 
8 974 (7 279), corresponding to a margin of 
21.3% (22.9). The operating profit was posi-
tively affected by acquisitions and currency, 
but negatively by items affecting comparabil-
ity of MSEK –180. This includes MSEK 60 
restructuring costs related to consolidation 
of manufacturing in the U.S, a negative 
effect of MSEK 50 related to a one-time 
acquisition accounting adjustment for cur-
rency derivatives entered by Edwards prior 
to the acquisition, and several smaller items. 
The adjusted operating margin was 21.7% 
(22.9) and was negatively affected by dilu-
tion from acquisitions and by investments in 
the sales and service organization. The 
return on capital employed was 40% (65), 
negatively affected by the acquisition of 
Edwards. 
ORDERS RECEIVED, REVENUES  
AND OPERATING MARGIN
THE YEAR IN REVIEW
0
9 000
18 000
27 000
36 000
45 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
Orders received, MSEK
Operating margin, %
Revenues, MSEK
	 A range of oil-free scroll compressors. 
These silent, compact compressors have 
been equipped with more efficient motors 
and a more advanced controller. 
	 A range of oil-injected rotary screw com-
pressors with many energy savings features 
was introduced. The features improve the 
performance of the compressors with up to 
5% compared to the previous generation.
	 An enhanced air-piping system, which  
reduces installation time by up to 85%.
	 An inverter, which has been designed  
in-house specifically for industrial compres-
sors to provide increased efficiency and  
reliability in all working conditions. 
	 In early 2015, Atlas Copco will introduce  
a variable speed drive (VSD) vacuum pump 
for general industrial applications. The 
pump, called GHS VSD+, represents a  
real leap forward and delivers significant 
energy savings of around 50%.
INNOVATION  
Several new products and solutions were introduced, including the following examples:

22
Atlas Copco 2014
COMPRESSOR TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
The market
The global market for compressed air equip-
ment, air and gas treatment equipment,  
vacuum solutions and related services is 
characterized by a diversified customer base. 
The customers demand solutions that are 
reliable, productive and efficient and suited 
to specific applications. 
Compressors are used in a wide spectrum 
of applications. In industrial processes, clean, 
dry and oil-free air is needed in e.g. food, 
pharmaceutical, electronics, and textile indus-
tries. Compressed air is also used for power 
tools in assembly operations and in applica-
tions as diversified as snow making, fish farm-
ing, on high-speed trains, and in hospitals. 
Blowers are used in applications with a 
demand for a consistent flow of low-pressure 
air, for example waste­water treatment and 
conveying. 
Gas and process compressors and 
expanders are supplied to various process 
industries, such as air separation plants, 
power utilities, chemical and petro­chemical 
plants, and liquefied natural gas applications.
Vacuum solutions are required in a num-
ber of industrial applications where the  
pressure is required to be below atmospheric 
pressure and/or the environment needs to be 
clean. Applications include manufacturing 
of semiconductors, flat panel displays, chem-
icals and pharmaceuticals as well as packag-
ing, pick-up and conveying.
Stationary industrial air compressors and 
associated air-treatment products, spare parts 
and service represent about 70 % of sales. 
Large gas and process compressors, including 
service, represent approximately 10 % and 
vacuum solutions, including service, approxi-
mately 20 %. 
Market trends
• 	Continued focus on energy efficiency/ 
savings, energy recovery and reduction of 
CO2 emissions
• Increased demand for service and  
monitoring of compressed air installations
• Focus on total solution and total  
lifecycle cost
• New applications for compressed air,  
compressed gas and vacuum
Demand drivers
• 	Investments in machinery
• 	Industrial production
• 	Energy costs
Vision and strategy
The vision is to be First in Mind—First in 
Choice ® as a supplier of compressed air 
and gas and vacuum solutions, by being 
interactive, committed and innovative, and 
offering customers the best value. 
The strategy is to further develop Atlas 
Copco’s leading position in the selected 
niches and grow the business in a way that is 
economically, environmentally and socially 
responsible. This should be done by capital-
izing on the strong market presence world-
wide, improving market penetration in 
mature and developing markets, and contin-
uously developing improved products and 
solutions to satisfy demands from custom-
ers. 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, vacuum solutions, and compressor 
solutions for trains, ships, and hospitals. The 
business area is actively looking at acquiring 
complementary businesses. 
Strategic activities
• 	Increase market coverage and improve 
presence in targeted markets/segments
• 	Develop new sustainable products and 
solutions offering better value and 
improved energy efficiency to customers
• 	Extend the product and service offering
• 	Perform more service on a higher share  
of the installed base of equipment
• 	Increase operational efficiency
• 	Invest in employees and competence  
development
• 	Acquire complementary businesses and 
integrate them successfully
Competition
Compressor Technique’s principal competi-
tors in the market for industrial compressors 
and air treatment equipment are Ingersoll-
Rand, Kaeser, Hitachi, Gardner Denver, 
Cameron, Sullair, and Parker Hannifin. 
There are also numerous regional and local 
competitors, including many in China. In  
the market for gas and process compressors 
and expanders, the main com­petitors are 
Siemens and MAN Turbo. In the market for 
vacuum solutions, the main competitors are 
Busch, Gardner Denver, Ebara, Oerlikon/
Leybold and Pfeiffer Vacuum.
MARKET POSITION  
Compressor Technique has a leading 
market position globally in most  
of its operations.
The Compressor Technique business area provides industrial compressors, 
vacuum solutions, gas and process compressors and expanders, air and gas 
treatment equipment and air management systems. The business area has  
a global service network and innovates for sustainable productivity in the 
manufacturing, oil and gas, and process industries. Principal product  
development and manufacturing units are located in Belgium, the United 
States, China, South Korea, Germany, Italy and the United Kingdom.
REVENUES, MSEK 
42 165
IN 2014

Atlas Copco 2014
23
COMPRESSOR TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
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 a 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 WorkPlace AirSystem with integrated dryers, 
as well as the energy-efficient VSD technology 
and energy recovery kits.
Oil-free blowers 
Oil-free blowers are available with different 
technologies: rotary lobe blowers, rotary screw 
blowers and centrifugal blowers. Blowers are used 
in process industry applications with a demand for 
a consistent flow of low-pressure air, for example 
wastewater treatment and conveying.
Oil-free centrifugal compressors 
Oil-free centrifugal compressors are used in 
industrial applications that demand constant,  
large volumes of oil-free air. They are also called 
turbo compressors.
Gas and process compressors 
Gas and process compressors are supplied 
primarily to the oil and gas, chemical/petro­
chemical process and power industries.  
The main product category is multi-stage 
centrifugal, or turbo, compressors which  
are complemented by turbo expanders.
Vacuum solutions 
Vacuum products and abatement solutions are 
integral to manufacturing processes requiring 
clean vacuum environments, such as for 
semiconductors and flat panel displays, and are 
also used within an increasingly diverse range of 
industrial applications.
Air and gas treatment equipment  
and medical air solutions
Dryers, coolers, gas purifiers and filters are 
supplied to produce the right quality of 
compressed air or gas. In addition, solutions  
for medical air, oxygen and nitrogen generation as 
well as systems for biogas upgrading are offered. 
THE DIVISIONS
January 1, 2015
1.	Compressor Technique Service  
President Vagner Rego
2. 	Industrial Air  
President Joeri Ooms
3.	Oil-free Air  
President Chris Lybaert
4.	Vacuum Solutions  
President Geert Follens
5.	Gas and Process  
President Peter Wagner
6. 	Medical Air Solutions  
President Horst Wasel
7. 	Airtec President  
Philippe Ernens
Atlas Copco offers all major air compression technologies as well as air and gas  
treatment equipment, air management systems and vacuum solutions, and is able  
to offer customers the best solution for every application.
BUSINESS AREA PRESIDENT:  
NICO DELVAUX
1
2
3 
5
6 
7 
4
A brand portfolio strategy is used to  
increase local presence and reach  
different customer segments
Oil-injected screw compressors 
with a compact design and 
breakthrough energy-efficiency
Oil-free screw compressor with 
energy-recovery unit
Highly efficient  
vacuum pumps 
with variable speed 
drive

24
Atlas Copco 2014
INDUSTRIAL TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
INDUSTRIAL TECHNIQUE
KEY FIGURES, MSEK
2014
2013
Change, %
Orders received
11 335
9 594
+18
Revenues
11 450
9 501
+21
Operating profit 
2 557
2 138  
+20
Operating margin, %
22.3
22.5 
 
Return on capital employed, %
36
42 
 
Investments
270
121 
 
Average number of employees
5 128
4 553 
 
The business area achieved healthy order 
growth in all major regions and for most types 
of industrial tools and assembly systems. The 
growth was supported by the motor vehicle 
and general industries’ investments and by 
strong development of the service business. 
The business area acquired Henrob, a pioneer 
and market leader in self-pierce riveting,  
and continued to invest in market presence, 
product development and service. 
ABOUT THE IMAGE:
Electric screwdrivers for low-torque assembly, e.g. in the electronics 
industry, are designed for precision, productivity and quality.

Atlas Copco 2014
25
INDUSTRIAL TECHNIQUE – ADMINISTRATION REPORT
Business development
The demand for industrial tools and assem-
bly systems was supported by investments by 
the motor vehicle industry and by customers 
in general industry, e.g. electronics and aero-
space. Orders received increased by 7% 
organically. 
The orders received for advanced indus-
trial tools and assembly systems to the 
motor vehicle industry increased as manu-
facturers continued to equip new assembly 
lines, and upgrade existing ones, with new 
and more productive tools and systems. The 
order volumes increased in most major mar-
kets with the strongest development in China 
and in the United States. The adhesive 
equipment business performed well and had 
strong growth in Asia. The self-pierce rivet-
ing business of Henrob, which was acquired 
in the latter part of the year, as well as acqui-
sitions made in 2013, also contributed to the 
growth.
Order volumes for industrial power tools 
from the general manufacturing industries 
increased in Europe, North America and 
Asia with strong growth in the latter. The 
sales to the electronics and aerospace indus-
tries and most other general assembly seg-
ments improved. Significant growth was 
achieved for high-torque assembly tools. 
The orders received also increased in the 
vehicle service business, which provides large 
fleet operators and specialized repair shops 
with tools and other equipment. 
The service business had a strong devel-
opment. Customers increasingly demand 
service and maintenance support, ranging 
from ad-hoc maintenance to management of 
all tool maintenance at the customer site. 
Double-digit order growth was achieved in 
Europe and in Asia.
Market presence and organizational 
development
The business area increased its presence in  
targeted markets and customer segments  
by selected acquisitions and by adding 
resources in service and product development.  
Acquisitions
The business area made two acquisitions  
in 2014:
•	Henrob, a pioneer and market leader in 
self-pierce riveting, a mechanical fastening 
process for joining two or more sheets of 
material where welding is difficult, e.g.  
aluminum. The company, with main facili-
ties in the U.S. and the U.K., had revenues 
of MUSD 162 (MSEK 1 063) in the 
12-month period ending June 2014 and 
about 400 employees.
•	Titan Technologies International Inc.,  
a provider of powerful bolting tools to  
the oil and gas and other industries. The 
U.S.-based company had 14 employees and 
revenues of about MUSD 5 (MSEK 35) in 
2014. 
Revenues, profits and returns
Revenues increased 21% to a record MSEK 
11 450 (9 501), up 8% organically. Operating 
profit was also the highest ever at MSEK 
2 557 (2 138), corresponding to a margin of 
22.3% (22.5). The operating margin was sup-
ported by higher volumes, but was negatively 
affected by dilution from acquisitions. The 
acquisitions also affected the return on capi-
tal employed, which was 36% (42).
Other, 7%
Manufacturing, 85%
Service, 3%
Process industry, 2%
Construction, 
3%
Asia/
Australia, 22%
North 
America, 27%
Africa/
Middle East, 1%
Europe, 46%
South 
America, 4%
Service, 26%
Equipment, 74%
ORDERS RECEIVED BY CUSTOMER 
CATEGORY
REVENUES BY REGION
SHARE OF REVENUES 
ORDERS RECEIVED, REVENUES  
AND OPERATING MARGIN
0
3 000
6000
9 000
12 000
15 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
Orders received, MSEK
Operating margin, %
Revenues, MSEK
	 An electric pulse tool for assembly  
operations. The tool gives no torque  
reaction to the operator and offers full 
traceability and high productivity.
	 An electromechanical press tool, primar-
ily used in power train assembly applica-
tions, that enhances customers’ flexibili-
ty and efficiency in production. With the 
added tool two types of assembly solu-
tions are provided in one system.
	 A pneumatic impact wrench certified  
for use in explosive atmospheres offers 
one of the highest performance, quality 
and ergonomics in its class.
	 A comprehensive range of battery- 
powered tools for automotive and  
maintenance professionals. The tools 
deliver the high power of an air tool and 
the mobility of a battery tool.
INNOVATION  
Several industrial tools and assembly systems were introduced,  
including the following examples: 
THE YEAR IN REVIEW

26
Atlas Copco 2014
INDUSTRIAL TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
The market
The motor vehicle industry, including sub-
suppliers, is a key customer segment repre-
senting approximately half of Industrial 
Technique’s revenues, and the application 
served is primarily assembly operations. The 
motor vehicle industry has been at the fore-
front of demanding more accurate fastening 
tools that minimize errors in production and 
enable recording and traceability of opera-
tions. The business area has successfully 
developed advanced electric industrial tools 
and assembly systems that assist customers 
in achieving fastening according to their 
specifications and minimizing errors and 
interruptions in production. This also 
includes a wide offering of quality assurance 
and quality improvement solutions. With  
the increasing requirement of lower fuel  
consumption and the use of lighter materi-
als, the motor vehicle industry is looking to 
alternative assembly solutions. The business 
area offers dispensing equipment for adhe-
sives and sealants as well as self-pierce  
riveting equipment and rivets to cater to  
these needs.
In general industry, industrial tools are 
used in a number of applications, such as 
assembly, drilling and material removal. 
Customers are found in assembly operations, 
e.g. electronics, aerospace and appliances, in 
general industrial manufacturing, shipyards, 
foundries, and among machine tool builders. 
The equipment supplied includes assembly 
tools for a wide torque range, drills, percus-
sive tools, grinders, hoists and trolleys, and 
accessories. Air motors are supplied sepa-
rately for different applications in produc-
tion facilities. 
For vehicle service, car and truck service 
and tire and body shops, the equipment sup-
plied includes impact wrenches, percussive 
tools, drills, sanders, and grinders.
There is a growing demand for service, 
e.g. maintenance contracts and calibration 
services that improve customers’ productivity. 
Market trends
• 	Higher requirements for quality,  
productivity, flexibility, ergonomics  
and decreased environmental impact
• 	More advanced tools and systems  
and increased importance of service, 
know-how and training
• 	Power tools with electric motors, partly 
replacing pneumatic tools
• 	Demand for lower fuel consumption drives 
demand for alternative assembly methods, 
e.g. adhesives and self-pierce riveting
Demand drivers
•	Investments in industrial tools and  
systems, e.g. assembly line investments
• 	Changes in manufacturing methods and 
higher requirements e.g. quality assurance 
and traceability 
• 	Industrial production
Vision and strategy
The vision is to be First in Mind—First in 
Choice ® as a supplier of industrial power 
tools, assembly systems, quality assurance 
products, software, and services to custom-
ers in the motor vehicle industry, in targeted 
areas in the general manufacturing industry 
and in vehicle service. 
The strategy is to continue to grow the 
business profitably by building on the tech-
nological leadership and continuously offer-
ing pro­ducts and services that improve cus-
tomers’ productivity. Important activities 
are to extend the product offering, particu-
larly with the motor vehicle industry and to 
provide additional services, know-how and 
training. The business area is also increasing 
its presence in general industrial manufac-
turing, vehicle service and geographically in 
targeted markets. The presence is enhanced 
by utilizing a brand portfolio strategy. The 
business area is actively looking at acquiring 
complementary businesses. 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 
solutions, offering increased quality and 
productivity, improved ergonomics and 
reduced environmental impact
• 	Extend the product and service offering
• 	Perform more service on a higher share of 
the installed equipment base
• 	Increase operational efficiency
• 	Invest in employees and competence  
development
• 	Acquire complementary businesses and 
integrate them successfully
Competition
Industrial Technique’s competitors in the 
industrial tools business include Apex Tool 
Group, Ingersoll-Rand, Stanley Black & 
Decker, Uryu, Bosch and several local and 
regional competitors. In the area of adhesive 
and sealant equipment, the primary compet-
itors are Nordson and Graco. 
MARKET POSITION  
Industrial Technique has a leading 
market position globally in most  
of its operations.
The Industrial Technique business area  provides industrial power tools 
and systems, industrial assembly solutions, quality assurance products, 
software and service through a global network. The business area inno-
vates for sustainable productivity for customers in the automotive and 
general industries, maintenance and vehicle service. Principal product 
development and manufacturing units are located in Sweden, Germany, 
the United States, United Kingdom, France and Japan.
REVENUES, MSEK 
11 450 
IN 2014

Atlas Copco 2014
27
INDUSTRIAL TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
Advanced drilling unit for semi-automatic drilling 
operations in aerospace applications
Advanced electric assembly 
tool with controller
PRODUCTS AND APPLICATIONS 
THE DIVISIONS
January 1, 2015
1.	Industrial Technique Service  
President Henrik Elmin, from March 1, 2015.
2. 	MVI Tools and Assembly Systems  
President Lars Eklöf
3.	General Industry Tools and Assembly Systems  
President Henrik Elmin, who has been appointed President  
of Industrial Technique Service as from March 1, 2015.
4. Chicago Pneumatic Tools  
President Philippe Artzet 
5.	Industrial Assembly Solutions  
President Tobias Hahn
The Industrial Technique business area offers the most extensive range  
of industrial power tools and assembly systems on the market.
BUSINESS AREA PRESIDENT: 
MATS RAHMSTRÖM
 A pneumatic impact 
wrench certified  
for use in explosive 
atmospheres 
Motor vehicle industry
The motor vehicle industry primarily demands 
advanced assembly tools and assembly systems 
and is offered a broad range of electric assembly 
tools, control systems and associated software 
packages for safety-critical tightening. Specialized 
application centers around the world configure 
suitable assembly systems. The systems make it 
possible to view, collect and record the assembly 
data. The motor vehicle industry, like any industrial 
manufacturing operation, also demands basic 
industrial power tools. With the increasing 
requirement of lower fuel consumption and the  
use of lighter materials, the motor vehicle industry 
is increasingly investing in assembly solutions for 
these requirements, e.g. dispensing equipment  
for adhesives and sealants and equipment for  
self-pierce riveting. 
General industrial manufacturing 
The business area provides a complete range of 
products, services and production solutions for 
general industrial manufacturing. Products range 
from basic fastening tools, drills and abrasive tools 
to the most advanced assembly systems available. 
It also includes a large range of accessories. 
Adhesive and sealant equipment is also offered  
to general industrial manufacturing businesses.  
A large team of specialists is available to support 
customers in improving production efficiency.
Self-pierce riveting tool
Vehicle service
The business area offers powerful and reliable  
tools to meet the demands of the vehicle service 
professional. The offering includes impact 
wrenches, percussive tools, drills, sanders  
and grinders.
2 
4 
5 
1 + 3

28
Atlas Copco 2014
MINING AND ROCK EXCAVATION TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
MINING AND ROCK 
EXCAVATION TECHNIQUE
KEY FIGURES, MSEK
2014
2013
Change, %
Orders received
25 752
26 092  
–1
Revenues
25 718
29 013  
–11
Operating profit 
4 307
6 083
–29
Operating margin, %
16.7
21.0 
 
Return on capital employed, %
29
41 
 
Investments
 967
912 
 
Average number of employees
12 392
13 347 
 
The demand for mining and rock excavation 
equipment remained at a low level and the 
order volumes were somewhat lower than in 
2013. The service business was stable, while 
consumable orders were lower. The business 
area identified and implemented further effi-
ciency measures to adapt the costs to the low 
demand, and it made one acquisition.
ABOUT THE IMAGE:
A face drilling rig suitable for large sized tunnels. The drilling is controlled 
by a computerized, award-winning rig control system with an intelligent 
functionality that ensures precision, productivity, increased uptime and 
low costs.

Atlas Copco 2014
29
MINING AND ROCK EXCAVATION TECHNIQUE – ADMINISTRATION REPORT
Business development
The demand for equipment from customers 
in the mining industry remained low reflect-
ing low investments in capital equipment. 
The order intake decreased somewhat com-
pared to the previous year for most types  
of underground and surface equipment,  
but was relatively stable during the year. 
Geographically, the order intake improved  
in North and South America, in Europe  
as well as in Australia, but decreased  
significantly in Africa and in Asia. 
The order intake for equipment for 
infrastructure projects decreased slightly  
and affected both underground and surface 
drilling equipment. The demand and order 
intake was soft in most regions.
Demand for service and spare parts 
remained healthy and the service division 
continued to invest in the organization and 
took several initiatives to further develop  
the business. Volumes were marginally  
positive as growth in North America,  
South America, Europe and Australia  
compensated for a negative development  
in Asia and Africa/Middle East. 
The sales of consumables decreased, 
most significantly in Australia and in Asia, 
and was negatively impacted by low activity 
in exploration. 
In total, the order intake decreased by 
2% organically.
Organizational development
Several actions to adjust capacity to the 
lower demand for mining equipment were 
implemented, including consolidation of 
some manufacturing facilities. The total 
workforce for comparable units was reduced 
with about 900 during the year.
Acquisitions
The business area made one acquisition  
in 2014:
• 	Sweden-based Geawelltech, which sells, 
rents out and manufactures well and  
geotechnical drilling equipment, with 
19 employees.
Revenues, profits and returns
Revenues decreased 11% to MSEK 25 718 
(29 013) corresponding to 12% organic 
decline. Operating profit decreased 29% to 
MSEK 4 307 (6 083), including restructuring 
and other costs affecting comparability of 
MSEK 415 (120). The adjusted operating 
margin was 18.4% (21.4) and was impacted 
negatively by lower volumes and dilution 
from acquisitions, but was supported by  
currency. Return on capital employed was 
29 % (41). 
ORDERS RECEIVED BY CUSTOMER 
CATEGORY
REVENUES BY REGION
SHARE OF REVENUES 
ORDERS RECEIVED, REVENUES  
AND OPERATING MARGIN
0
7 000
14 000
21 000
28 000
35 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
Orders received, MSEK
Operating margin, %
Revenues, MSEK
THE YEAR IN REVIEW
 Process 
industry, 1%
Mining, 66%
 Construction, 
33%
Asia/
Australia, 24%
North 
America, 22%
Africa/
Middle East, 18%
Europe, 21%
South 
America, 15%
Service
(consumables) 
24%
Equipment, 33%
Service, 43%
	 A system with large diameter drilling con-
sumables for both mining and construction 
applications. The new system offers up to 
30% longer service life providing fewer rod 
changes and increased productivity.
 	A highly mobile and versatile rig for boring  
so-called opening holes in mines. The new 
rig, called Easer, can perform both box  
hole boring and down-reaming with a hole  
diameter of 750 mm, as well as conventional  
raiseboring with a hole diameter of up to 
1 200 mm.
	 An upgraded range of medium sized face-
drilling rigs for underground mining and  
tunneling that have been enhanced to make 
them stronger, cleaner, safer and easier to 
operate. The design improvements include 
stronger booms, a new filtration system,  
increased safety features and Atlas Copco’s 
award winning rig control system. In field 
trials these enhancements have returned 
top ratings for productivity, longer service 
intervals and lower operating costs.
INNOVATION  
Several new products and solutions were introduced, including the following examples:

30
Atlas Copco 2014
MINING AND ROCK EXCAVATION TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
The market
The total market for equipment for mining 
and civil engineering applications is very large 
with numerous companies supplying prod-
ucts to different applications. The Mining and 
Rock Excavation Technique business area, 
however, offers products and services only 
for selected applications. 
Customers from the mining industry  
represent about two thirds of business area 
revenues. The applications include produc-
tion and development work for both under-
ground and open-pit mines as well as mineral 
exploration. The customers demand rock 
drilling equipment, rock drilling tools, load-
ing and haulage equipment, utility vehicles, 
ventilation systems, and exploration drilling 
equipment.
Contractors involved in civil engineering 
and infrastructure construction represent 
one third of revenues. The applications 
include blasthole drilling for tunneling, e.g. 
for road, railway and dam construction, 
aggregate production and drilling for water, 
energy, oil and gas as well as for ground  
engineering. The customers demand rock 
drilling equipment, rock drilling tools, utility 
vehicles, ventilation systems, and ground 
engineering equipment. 
The equipment is primarily sold directly 
to the end user and the business area has a 
large organization offering service, spare 
parts and consumables. Mining companies 
and contractors demand service, spare parts 
and consumables, often in the form of con-
tracts where availability and productivity  
are key performance criteria. 
Market trends
• 	More productive and safe equipment, 
including solutions for autonomous  
operations and remote control
• 	Increased focus on environment
• 	Customer and supplier consolidation
•  Performance contracts for service and  
consumables
•  Focus on total cost of operations and  
optimization of the value chain
Demand drivers
Mining
• 	Investments in equipment
• 	Ore production
Civil engineering
• 	Infrastructure and public investments
• 	Non-building construction activity
Vision and strategy
The vision is to be First in Mind—First in 
Choice ® as a supplier of equipment and  
service for rock excavation for mining and 
civil engineering applications. 
The strategy is to grow by maintaining 
and reinforcing Atlas Copco’s leading  
market position as a global supplier for  
rock excavation equipment and services;  
by developing its positions in drilling and 
loading equipment, exploration drilling, and 
related businesses; and by increasing reve-
nues by offering more services to 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 
solutions offering improved productivity 
and safety in line with customer demand, 
e.g. computerized control systems, remote 
control and solutions for autonomous 
operations
•	Invest in design, development and  
production capacity in growth markets
• 	Extend the product and service offering
• 	Perform more service on a higher share  
of the installed base of machines
• 	Develop the service business
• 	Improve agility in cost and working capital
• 	Invest in employees and competence  
development
• 	Acquire complementary businesses and 
integrate them successfully
Competition
Mining and Rock Excavation Technique’s 
principal competitor in most product areas 
is Sandvik. Other competitors include Furu-
kawa in the market for underground and sur-
face drilling equipment; Boart Longyear for 
underground drilling equipment for mining, 
exploration drilling equipment and rock drill-
ing tools; Joy Global for open-pit mining 
equipment and Caterpillar for underground 
and open-pit mining equipment. In addition, 
there are several competitors operating 
locally, regionally and in certain niche areas.
MARKET POSITION  
Mining and Rock Excavation 
Technique has a leading market 
position globally in most of its 
operations.
The Mining and Rock Excavation Technique business area provides equip-
ment for drilling and rock excavation, a complete range of related consum-
ables and service through a global network. The business area innovates 
for sustainable productivity in surface and underground mining, infra-
structure, civil works, well drilling and geotechnical applications. Principal 
product development and manufacturing units are located in Sweden, the 
United States, Canada, China and India.
REVENUES, MSEK 
25 718
IN 2014

Atlas Copco 2014
31
MINING AND ROCK EXCAVATION TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
PRODUCTS AND APPLICATIONS 
THE DIVISIONS 
January 1, 2015
1.	Mining and Rock Excavation Service  
President Markku Teräsvasara 
2. 	Underground Rock Excavation  
President Scott Barker
3.	Surface and Exploration Drilling  
President Victor Tapia
4.	Drilling Solutions  
President José Manuel Sanchez
5.	Rock Drilling Tools  
President Helena Hedblom
6.	Rocktec  
President Andreas Nordbrandt
BUSINESS AREA PRESIDENT:  
JOHAN HALLING
Rotary blasthole rig for 
open-pit mining
Rock drilling tools
Atlas Copco Minetruck for ore  
haulage underground
Underground rock drilling equipment
Underground drill rigs are used to drill blast holes in 
hard rock to excavate ore in mines or to excavate 
rock for road, railway or hydropower tunnels, or 
underground storage facilities. Holes are also drilled 
for rock reinforcement with rock bolts. The business 
area offers drill rigs with hydraulic and pneumatic 
rock drills, as well as handheld rock drills. Raise 
boring machines are used to drill large diameter 
holes, which can be used for ventilation, ore and 
personnel transportation.
Underground loading and haulage equipment
Underground vehicles are used mainly in mining 
applications, to load and transport ore and/or waste 
rock.
Underground utility vehicles
Utility vehicles are used for scaling, bolting, 
charging, lifting and shotcreting. 
Surface drilling equipment
Surface drill rigs are primarily used for blast hole 
drilling in open pit mining, quarries, and civil 
engineering projects, but also to drill for water, 
shallow oil and gas. The business area offers drill 
rigs with hydraulic and pneumatic rock drills as  
well as rotary drill rigs.
Rock drilling tools
Rock drilling tools include drill bits and drill rods for 
blast hole drilling in both underground and surface 
drilling applications, as well as consumables for 
raise boring and rotary drilling.
Exploration drilling and ground  
engineering equipment
The business area supplies a wide range of 
equipment for underground and surface exploration 
applications. An extensive range of equipment for 
ground engineering, including systems for 
overburden drilling, is also offered. Applications 
include anchoring, geotechnical surveying, ground 
reinforcement and water well drilling.
Ventilation systems
High pressure fans designed especially for 
delivering air through ducts in mining and tunneling.
The Mining and Rock Excavation Technique business area offers an extensive range of 
productivity-enhancing equipment for rock excavation and civil engineering applications. 
1
4
2
5
3
6

32
Atlas Copco 2014
CONSTRUCTION TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
CONSTRUCTION TECHNIQUE
KEY FIGURES, MSEK 
2014
2013
Change, %
Orders received
14 847
14 260
+4
Revenues
14 739
13 967
+6
Operating profit 
1 768
1 733
+2
Operating margin, %
12.0
12.4
 
Return on capital employed, %
12
13
 
Investments
939
959
 
Average number of employees
5 780
5 714
 
The order intake of construction equipment 
was largely unchanged. It improved in North 
America while it developed negatively in South 
America. Specialty rental as well as the service 
business developed well and the business area 
continued to invest in market presence and 
product development.
ABOUT THE IMAGE:
Atlas Copco Dynapac rollers are designed with efficiency in mind. 
Performance, visibility, operator comfort, compaction control and 
serviceability are key features. An ECO mode is available for up to  
15% reduction in fuel consumption.

Atlas Copco 2014
33
CONSTRUCTION TECHNIQUE – ADMINISTRATION REPORT
ORDERS RECEIVED BY 
CUSTOMER CATEGORY
REVENUES BY REGION
Business development
Total orders received increased by 4%, with 
an organic growth of 1%. Geographically, 
the orders increased in North America and 
in Europe, but decreased in Asia and South 
America. 
The demand for construction equipment 
was largely unchanged. Orders received for 
construction tools, such as breakers and 
silenced demolition tools, as well as for road 
construction equipment increased some-
what. For these products, order intake 
increased in North America, in Europe and 
in Africa/Middle East, but decreased in Asia 
and in South America. Orders for portable 
energy products, such as portable compres-
sors, generators, pumps and lighting towers, 
decreased. The order intake increased in 
North America, but decreased in all other 
regions. 
The service business achieved growth in 
most markets with strong development in 
North America. In Asia, however, the 
demand was softer, particularly in China, 
and orders received decreased. 
The specialty rental business continued 
to develop well and orders received increased 
in all regions, except in South America.  
The growth in North America and Asia/ 
Australia was particularly strong. 
Market presence and organizational 
development
The business area invested in presence in  
targeted markets and segments, but also 
worked to increase the efficiency of the  
organization. The number of employees was 
stable, with fewer employees in manufactur-
ing but with more than 10% more employees 
in research and development. The latter 
reflects a strong investment in this area. 
On January 1, 2014, the Specialty  
Rental division moved from the Compressor 
Technique business area to the Construction 
Technique business area. The objective is to 
strengthen growth by further developing 
product and service synergies. Historical 
data has been restated.
Andrew Walker was appointed President 
of the Construction Technique business area 
and member of Group Management, effec-
tive September 15, 2014. He was previously 
President of the Service division in the  
Compressor Technique business area and 
replaced Nico Delvaux, who was appointed 
President of the Compressor Technique 
business area. 
Revenues, profits and returns
Revenues increased 6% to MSEK 14 739 
(13 967), primarily due to currency effects. 
The organic growth was 2%. Operating profit 
increased to MSEK 1 768 (1 733), corre-
sponding to a margin of 12.0% (12.4). The 
margin was negatively affected by product 
mix, but supported by currency. Return on 
capital employed was 12% (13). 
SHARE OF REVENUES 
ORDERS RECEIVED, REVENUES  
AND OPERATING MARGIN
THE YEAR IN REVIEW
0
3 000
6 000
9 000
12 000
15 000
2014
2013
2012
0
5
10
15
20
25
MSEK
%
Orders received, MSEK
Operating margin, %
Revenues, MSEK
	 A range of drum cutter attachments with low noise and vibration 
levels suitable for urban areas. This is a complementary product to 
hydraulic breakers and it offers a solution for concrete or soft rock 
applications.
 	Lighting towers designed for a wide variety of portable light appli-
cations, including for use on construction, mining, and oil and gas 
work sites, public lighting at night events.
 	A range of stationary generators for emergency and continuous 
power requirements.
 	A reversible plate with a compaction indicator. It reduces the risk  
of over- or under compaction, saves costs and increases the uptime 
for the machine.
 	Atlas Copco’s large paver range has been equipped with stage  
IV engines and is not only compliant with the latest emission  
standards, but is also contributing to lower fuel consumption.  
Calculations suggest that fuel savings up to 4 200 liters annually  
is possible.
INNOVATION  
Several new products and solutions were introduced, including the following examples:
 Manufacturing, 14%
Others, 14%
Construction, 48%
Service, 8%
Mining, 8%
Process 
industry, 8%
Asia/
Australia, 21%
North 
America, 20%
Africa/
Middle East, 14%
Europe, 34%
South 
America, 11%
Service, 15%
Equipment, 69%
Service (rental), 
16%

34
Atlas Copco 2014
CONSTRUCTION TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
The market
The total market for construction equipment 
is very large. It has a large number of market 
participants offering a wide range of products 
for different applications. The Construction 
Technique business area, however, focuses 
on a select number of applications. 
A key customer segment is, of course, 
construction, accounting for about half of 
revenues, but several other segments are 
served by the business area’s offering. Gen-
eral and civil engineering contractors, often 
involved in infrastructure projects like road 
building, other non-building activity and/or 
demolition work, demand compaction and 
paving equipment and light construction 
tools, such as breakers and cutters. Diesel-
driven portable compressors and generators 
are reliable power sources for machines  
and tools in the construction sector as well 
as for mining and numerous industrial  
applications.
Contractors as well as rental companies 
are important customers for service, includ-
ing spare parts, maintenance contracts, and 
repairs. 
Market trends
• 	Higher requirements for productivity,  
flexibility and ergonomics 
• 	Increased focus on environment and safety
• 	Customer and supplier consolidation
• 	Increased demand for service  
support/contracts
Demand drivers
•	Infrastructure and public investments
• 	Demolition and recycling
• 	Investments in portable energy  
equipment
Vision and strategy
The vision is to be First in Mind—First in 
Choice ® as a supplier of equipment and  
services for portable energy, road develop-
ment, and demolition applications to the 
construction industries. 
The strategy is to grow by developing 
Atlas Copco’s market position and presence 
as a global supplier within the selected 
niches: in construction and demolition tools, 
portable compressors, pumps and genera-
tors, lighting towers, and compaction and 
paving equipment. The presence is enhanced 
by utilizing a brand portfolio strategy. The 
strategy also includes further development 
of specialty rental services as well as devel-
opment of the service business; increasing 
revenues by offering more customers more 
services. 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
•	Capture sales and service synergies 
between the construction businesses
•	Develop new sustainable products and  
solutions 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
Construction Technique’s principal competi-
tors in the market for portable compressors 
are Doosan Infracore, Kaeser and Sullair. 
Volvo, Caterpillar and Wirtgen are the  
principal competitors for road construction 
equipment and Sandvik, Furukawa and 
Wacker Neuson for construction tools.  
In addition, there is a large number of  
competitors operating locally, regionally  
and in certain niche areas. Sany and XCMG 
are examples of Chinese competitors in the 
area of road construction equipment. 
MARKET POSITION  
The Construction Technique  
business area has leading or  
strong market positions globally  
in most of its operations.
The Construction Technique business area provides construction and demo­
lition tools, portable compressors, pumps and generators, lighting towers,  
and compaction and paving equipment. The business area offers specialty 
rental and provides service through a global network. Construction Technique  
innovates for sustainable productivity in infrastructure, civil works, oil and 
gas, energy, drilling and road construction projects. Principal product  
development and manufacturing units are located in Belgium, Germany,  
Sweden, the United States, China, India and Brazil.
REVENUES, MSEK 
14 739
IN 2014

Atlas Copco 2014
35
CONSTRUCTION TECHNIQUE – THE YEAR IN REVIEW – ADMINISTRATION REPORT
PRODUCTS AND APPLICATIONS 
THE DIVISIONS
January 1, 2015
1. 	Construction Technique Service  
President Adrian Ridge
2. 	Specialty Rental  
President Ray Löfgren
3. 	Portable Energy  
President Peter Lauwers, from February 1, 2015
4. 	Road Construction Equipment  
President Paul Hense, from April 1, 2015
5. 	Construction Tools  
President Vladimir Kozlovskiy 
The Construction Technique business area offers a range of products for  
selected applications in civil engineering, demolition and road building.
BUSINESS AREA PRESIDENT:  
ANDREW WALKER
Portable compressors
Portable oil-injected compressors are primarily used 
in construction applications where the compressed 
air is used as a power source for equipment, such 
as pneumatic breakers and rock drills. Portable oil-
free compressors are rented by customers to meet 
a temporary need for oil-free air, primarily in 
industrial applications. 
Boosters 
When extra high pressure is needed, boosters are 
used to boost the air fed by portable compressors. 
This high-pressure air is mainly used in the drilling 
industry and in oil and gas applications.
Generators
Portable generators fulfill a temporary need  
for electricity, primarily in construction applications. 
Other common generator applications are power 
supply for events, emergency power and power in 
remote locations.
Lighting towers
Light for safe operations 24/7.
Pumps
Portable diesel-driven pumps and submersible 
electric pumps, primarily for water. 
Compaction and paving equipment
The business area offers a range of compaction and 
paving equipment to the road construction market. 
Rollers are used to compact all types of soil or 
newly laid asphalt. Planers are used for removing 
asphalt and pavers for laying out new asphalt. The 
product range also includes smaller handheld 
compaction and concrete equipment.
Construction and demolition tools
Hydraulic, pneumatic and gasoline-powered 
breakers, cutters and drills are offered to 
construction, demolition and mining businesses.
Hydraulic 
breaker
Road construction equipment
Portable oil-free compressor
1
3
4
5
2

36
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
RISKS, RISK MANAGEMENT AND 
OPPORTUNITIES
All business activities involve risks. Atlas Copco has a structured and  
proactive approach to manage the company’s risks. Well-managed risks 
can lead to opportunities and add value to the business. Risks that are  
not well managed can lead to incidents and losses.
Atlas Copco’s global and diversified business 
towards many customer segments results  
in a variety of risks geographically and  
operationally. However, the ability to pre-
vent, detect and manage the risks is crucial 
for effective governance and control of the  
business. The aim is to achieve Group goals  
with well-managed risk taking in line with 
the strategy and within the frame of The 
Way We Do Things. 
Group functions for legal, insurance, 
treasury, tax, internal audit and controlling 
and accounting provide policies, guidelines 
and instructions to support Group compa-
nies establish risk management. Risk man-
agement is an operational responsibility and 
Strategic, operational 
and financial risks
Risks for non-compliance 
of laws and regulations
Risks in the reporting
RISK MANAGEMENT AND CONTROL STRATEGIES
■ 	Strategic planning
■ 	Policies, guidelines and 
instructions
■ 	Accept the risk
■ 	Internal control – prevent 
or detect
■ 	Analyses
■ 	Restructuring
■ 	Renegotiations
■ 	Outsourcing to third party
■ 	Loans, interests and  
currencies
■ 	Insurances and pensions
■ 	Safety precautions:  
property, personal and  
liability insurances
■ 	Awareness and crisis 
plans
RISKS, RISK MANAGEMENT AND OPPORTUNITIES
RISK
CONTEXT
MITIGATING FACTORS
OPPORTUNITIES
MARKET RISKS
A widespread financial crisis and economic 
downturn would not only affect the Group nega-
tively but it could also impact customers’ ability 
to finance their investments. Changes in cus-
tomers’ production levels also have an effect on 
the Group’s sales of spare parts, service and 
consumables. In developing markets, new small-
er competitors continuously appear which may 
affect Atlas Copco negatively.
P Well-diversified sales to customers in multiple 
countries and industries. Sales of spare parts and 
service are relatively stable in comparison to 
equipment sales.
P Monthly follow up of market and sales develop-
ment enables quick actions. 
P Flexible manufacturing setup makes it possible to 
quickly adapt to changes in equipment demand.
P Leading position in most market segments pro-
vides economies of scale.
➔ A significant competitive advantage as a result of a 
strong global presence, including growth markets.
➔ Opportunities to positively impact both the soci-
ety and environment, through the Group’s high 
quality sustainable products and high ethical  
standards.
➔ Continue to develop close, long-term and  
strategic relationships with customers and  
suppliers.
PRODUCT  
DEVELOPMENT 
RISKS
One of the challenges for Atlas Copco’s long-term 
growth and profitability will be to continuously  
develop innovative, sustainable products that con-
sume fewer resources over the entire life cycle. 
Atlas Copco’s product offering is also affected by 
national and regional legislation, on issues such as 
emissions, noise, vibrations, and recycling. How-
ever, there may be increased risk of competition 
in emerging markets where low-cost products are 
not affected by such rules.
P Continuous investments in research and develop-
ment to develop products in line with customer 
demand and expectations, even during economic 
downturns.
P Designing products with a life cycle perspective 
and measurable efficiency targets for the main 
product categories for each Division.
P Designing products with reduced emissions,  
vibrations or noise and increased recycling  
potential to meet legislative requirements.
➔ Substantial opportunities to strengthen the  
competitive edge by innovating high quality,  
sustainable products and creating an integrated 
value proposition for customers. 
is regularly followed-up. The implementa-
tion is regularly audited by internal and 
external audits. 
Strategic and operational risks include 
for example political decisions, market con-
ditions, environment, change of business 
behavior and business climate, supplier 
dependence, price adjustments, material  
supply, competence among employees,  
integration of acquired entities, customer 
credit risks and IT-risks. It’s a continuous 
task to address and reduce risks. 
Financial risks include currency risks, 
interest rate risks, financing, liquidity,  
pension liabilities’ and financial credit risks. 
The Group’s treasury function is responsible 
for these risks and also supports Group  
companies to implement financial policies 
and guidelines.
Risks for non-compliance of laws and 
regulations are managed by operations with 
the support of the Group legal function.
Risks in the reporting cover for example 
errors in the internal reporting to the Group 
or in the external reporting to authorities. 
Read more on Internal Control over finan-
cial reporting in the Corporate Governance 
report, pages 64–65.
The enterprise risk management process 
is managed by the Insurance & Risk Man-
agement department. It covers strategic and 
operational risk assessments on divisional 
level but gives also a consolidated view of 
Group risks.
Crisis management process is managed 
by the Insurance & Risk Management 
department. It is rolled out to all Atlas 
Copco entities. 
Awareness and management of risks  
can lead to opportunities. Presented on 
pages 36–39 are risks, risk mitigating factors 
and potential opportunities for each  
category of risk.

Atlas Copco 2014
37
THE YEAR IN REVIEW – ADMINISTRATION REPORT
PRODUCTION 
RISKS
Core component manufacturing is concentrated 
in 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 operations, 
e.g. through hazardous waste and emissions. 
Atlas Copco is directly and indirectly exposed  
to raw material prices.
P Manufacturing units continuously monitor the 
production process, test the safety and quality of 
the products, make risk assessments, and train 
employees.
P Manufacturing units invest in modern equipment 
that can perform multiple operations.
P Production units are subject to continuous risk 
management surveys to safeguard that they 
comply with the Atlas Copco loss prevention 
standard.
P Goal to certify all manufacturing units in  
accordance with the ISO 14001 standard.
➔ Continued opportunities to extensively promote 
operational excellence to streamline production, 
minimize inefficiencies and maintain a high flexi-
bility in the production process.
➔ Cost increases for raw materials and compo-
nents often coincide with strong end-customer 
demand and can partly be compensated by  
increased sales to mining customers and by  
increased market prices.
SUPPLY CHAIN 
RISKS
Atlas Copco and its business partners such as 
suppliers, sub-contractors and joint venture part-
ners, must share the same values as expressed 
in Atlas Copco’s Business Code of Practice, other-
wise there is a risk of compromising the Group’s 
reputation and brand. The availability of many 
components is dependent on suppliers and if they 
have interruptions or lack capacity, this may have 
an undesirable effect on deliveries. 
The use of many suppliers gives rise to the risk 
that products contain components which are not 
sustainably produced, e.g. that electronic com-
ponents contain conflict minerals (whose trade 
or taxation fund armed groups in conflict areas 
such as the Democratic Republic of Congo).
P Select and evaluate business partners on the ba-
sis of objective factors including quality, delivery, 
price, and reliability, as well as commitment to 
environmental and social performance.
P Continue the process to investigate and eradi-
cate the presence of conflict minerals in its value 
chain. 
P Establishment of a global network of sub- 
suppliers, to prevent supplier dependency.
P Business partners sign a compliance letter to the 
Business Code of Practice.
P E-learning for business partners developed to 
raise awareness of the Business Code of Practice.
➔ Further increase business agility and reduce 
costs by improving supplier inventory manage-
ment 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 Atlas 
Copco’s competitive position.
➔ Opportunity to strengthen customer relation-
ships by being ready to support customers who 
are impacted by the Dodd Frank legislation on 
conflict minerals.
➔ Promote human rights and work towards improv-
ing labor conditions, reducing corruption and 
conflicts.
DISTRIBUTION 
RISKS
Atlas Copco primarily distributes products and 
services directly to the end customer. If the dis-
tribution is not efficient, it may impact customer 
satisfaction, sales and profits. 
Some sales are made indirect through distribu-
tors and rental companies and their performance 
can have a negative effect on sales. 
The distribution of products can result in  
increased CO2 emissions from transport.
P Physical distribution of products is concentrated 
to a number of distribution centers and the  
delivery efficiency of these is continuously  
monitored.
P Resources are allocated to training and develop-
ment of the service organization. 
P As indirect sales are local/regional, the negative 
impact of poor performance is limited.
P Increased focus on smarter and more effective 
transports to reduce the total emissions per 
transport.
➔ Continue to strengthen the relationship with  
customers through timely deliveries of products 
and services.
➔ Transport efficiencies can save the customer 
time and cost while reducing the environ­mental 
impact of their own operations. 
➔ Reduce fuel costs and resource requirements 
which improves business agility for the Group.
RISKS WITH  
ACQUISITIONS 
AND  
DIVESTMENTS
The integration of acquired businesses is a  
cumbersome process and it is not certain that it 
will be successful. Synergies can take longer to 
materialize. 
Annual impairment tests are made on acquired 
goodwill. If goodwill is not deemed justified in 
such tests it can result in a write-down, affecting 
the Group’s result.
Acquisitions and divestments can impact local 
communities and/or the environment, directly or 
indirectly.
P The Group has established an Acquisitions  
Process Council which provides training and  
supports all business units prior to, during and 
post an acquisition.
P Atlas Copco guidelines and policies are applied to 
assess and manage the environmental and social 
impact of operations in the affected communities 
after an acquisition is complete.
P Human rights and environmental considerations 
are integrated when acquisitions and divest-
ments are made.
➔ Identifying the obstacles to integration can allow 
Atlas Copco to improve the process through 
methods such as job rotation, training or team 
building exercises. This would not only result in  
a smoother integration process but also lower  
operational costs by decreasing downtime and  
allowing newly acquired companies to become 
productive and efficient more rapidly.
FINANCIAL 
RISKS
Changes in exchange rates can adversely affect 
Group earnings when revenues from sales and 
costs for production and sourcing are denomi-
nated 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). 
Atlas Copco’s net interest cost is affected by 
changes in market interest rates. 
Atlas Copco is exposed to the risk of non- 
payment by any of its extensive number of end 
customers to whom sales are made on credit.
P A Financial Risk Management Committee meets 
regularly to manage financial risks. 
P The Group’s operations continuously monitor and 
adjust sales prices and costs to limit the transac-
tion risk. These measures can be complemented 
with hedging. 
P Translation risks are partially hedged by borrow-
ings in foreign currency and financial derivatives.
P Stringent credit policies are applied and there is 
no major concentration of credit risk. The provi-
sion for bad debt is based on historical loss lev-
els and is deemed sufficient. In the case of Atlas 
Copco Customer Finance, an in-house financing 
operations, risks are mitigated by retaining secu-
rity in the equipment until full payment is re-
ceived, by purchasing credit risk insurance and/or 
by transferring the risk to a third party.
➔ Working proactively with financial risks improves 
the profit margin and also creates possibilities  
for more stable cash flow. Overall, financial risk 
mitigation has the ability to improve business  
resilience for Atlas Copco.
➔ Atlas Copco Customer Finance can improve  
customer relations and attract more customers.
RISKS, RISK MANAGEMENT AND OPPORTUNITIES
RISK
CONTEXT
MITIGATING FACTORS
OPPORTUNITIES

38
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
RISKS TO  
REPUTATION
The Group’s reputation is a valuable asset which 
can be affected in part through the operation  
or actions of the Group and in part through the 
actions of external stakeholders. Products must 
deliver 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 also potentially  
detract the Atlas Copco brand.
P All Atlas Copco products are tested and also 
quality assured. Monitoring of product labeling 
and regular communications training. 
P The Group actively engages in stakeholder  
dialogue. 
P Training in the Business Code of Practice includes 
the yearly signing of a Compliance Statement. 
P Clear well-known brand promise. 
P A comprehensive employee survey is carried out 
every two years and followed up actively.
➔ Brand positioning. 
➔ Stakeholder engagement cannot only mitigate 
reputational risks in certain cases but it also  
presents opportunities to increase the awareness 
and credibility of Atlas Copco’s brand through  
improvements and innovations. 
➔ Delivering tested and quality assured products  
improve customer satisfaction and promote  
repeat business.
➔ Attract, develop and keep people that adhere to 
the Business Code of Practice. 
REPORTING 
RISKS
The risk related to the communication of finan-
cial 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. 
Taxes is an area with increased focus, especially 
transfer price risks.
Estimations often form a large portion of the 
sustainability data which is reported, and thus by 
its nature the numbers presented may not be 
precise representations of the Group’s impact.
P Atlas Copco subsidiaries report their financial 
statements regularly in accordance with Interna-
tional Financial Reporting Standards (IFRS). The 
Group’s consolidated financial statements, based 
on those reports, are prepared in accordance 
with IFRS and applicable parts of the Annual  
Accounts Act as stated in RFR 1 “Supplementary 
Rules for Groups”.
P The Group has procedures in place to ensure 
compliance with Group instructions, standards, 
laws and regulations, for example internal and 
external audits.
P Transfer price policy and agreements are imple-
mented in operations and regularly reviewed.
P Atlas Copco reports sustainability information  
according to the GRI 3.0 and works with training 
to improve reporting practices.
➔ Integrated reporting identifies and encourages  
opportunities for business synergies. 
➔ Addressing reporting risks increases transparency 
and improves the potential to represent the busi-
ness fairly and accurately. 
➔ Improved reporting also directly results in  
improved risk management, especially when  
the data has been integrated to highlight  
interdependencies.
RISKS OF  
CORRUPTION 
AND FRAUD
Corruption and bribery exist in markets where 
Atlas Copco conducts business.
P Zero tolerance policy on bribery and corruption, 
including facilitation payments. 
P Internal control routines in place aimed at prevent-
ing and detecting deviations. The Internal Audit 
function is established to ensure compliance with 
the Group’s corporate governance, internal control 
and risk management policies. 
P Control Self Assessment tool to analyze internal 
control processes. 
P Training in the Business Code of Practice, fraud 
awareness and workshops.
P The global Group hotline to report violations con-
fidentially and with no penalties for reporting.
P 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 has the opportunity to work with its  
industry peers to reshape 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 effi-
ciencies and creates more stability in the society 
and in markets where the Group operates. 
➔ Working against corruption and fraud improves 
Atlas Copco’s credibility and transparency and 
creates even more avenues to improve stake-
holder relations.
LEGAL RISKS
Atlas Copco’s business operations are affected 
by numerous laws and regulations as well as 
commercial and financial agreements with  
customers, suppliers, and other counterparties, 
and by licenses, patents and other intangible 
property rights. 
P In-house lawyers present on five continents. 
P 	A yearly legal-risk survey of all companies  
within the Group is performed in addition to a 
continuous follow-up of the legal risk exposure. 
The result of the legal-risk survey is compiled,  
analyzed, and reported to the Board and the  
auditors.
➔ Complying with legal norms and laws minimizes 
costs and increases opportunities to strengthen 
Atlas Copco’s reputation. It also creates the 
chance to develop reliable partnerships and  
improve business stability.
INSURABLE 
RISKS
Insurable risks involve the Group’s assets and  
interests e.g. property damage, business inter-
ruption, transport insurance, general and product 
liability and travel insurance.
P The Group Insurance Program is provided by the 
in-house insurance company Industria Insurance 
Company Ltd. which retains part of the risk  
exposure. 
P Insurance capacity is also purchased from  
leading insurers and reinsurers by way of using 
international insurance brokers. 
P Claims management services are purchased  
on a global basis from leading providers and a 
network of local fronting insurers are issuing  
insurance policies on a local basis to ensure legal 
compliance in all countries. 
P In connection with the insurance program,  
loss prevention standards have been developed 
through a large number of risk management  
surveys.
➔ Working with insurable risks minimizes costs.
➔ By way of control and conformity in terms of risk 
management, the probability of events that can 
cause material damage and severely impact the 
business operation of the Atlas Copco Group  
is reduced and business can proceed without 
disruption.
➔ The use of insurance companies owned by  
Atlas Copco enables a strict control over all  
insurable interests and liabilities. It also enables 
a close follow up of each individual insurance 
claim impacting the Group, which can help to 
eliminate or reduce future claims.
➔ Tailor made insurance solutions.
RISK
CONTEXT
MITIGATING FACTORS
OPPORTUNITIES
RISKS, RISK MANAGEMENT AND OPPORTUNITIES

Atlas Copco 2014
39
THE YEAR IN REVIEW – ADMINISTRATION REPORT
SAFETY  
AND HEALTH 
RISKS
Issues with wellness and sick leave can impact 
the productivity and efficiency of the operations.
Accidents or incidents at the workplace due to 
lack of proper safety measures can negatively  
affect productivity and the Atlas Copco employer 
brand. 
Atlas Copco recognizes the risk that serious  
diseases and pandemics can interrupt business 
operations and harm employees. 
P The Group regularly assesses and manages  
safety and health risks in operations.
P Goal to certify all major units in accordance with 
the OHSAS 18001 standard.
P Workplace wellness programs to reduce the  
impact of pandemic HIV/AIDS are in place in 
Sub-Saharan Africa. 
P Atlas Copco’s business partners are trained  
in the Group’s policies including the approach  
to health and safety.
➔ Improved safety and health in operations in-
creases both employee productivity and morale. 
➔ The Atlas Copco is strengthened through safe 
products. The Group continues to be seen as  
industry leader.
➔ Improving working conditions for customers and 
suppliers can create long lasting relationships 
and repeat orders.
ENVIRON­
MENTAL RISKS 
(EXTERNAL)
The primary drivers for external environmental 
risk are from physical changes in climate and  
natural resources, changes in regulations, taxes 
and resource prices.
Increased fuel/energy taxes can increase  
operational costs. 
 
Regulations and requirements related to carbon 
dioxide emissions from products and industrial 
processes are gradually increasing.
Changes in mean precipitation can affect all of 
Atlas Copco’s operations and negatively affect 
operations either directly or by disrupting the 
supply chain. 
P Atlas Copco consistently develops products  
with improved energy efficiency and reduced 
emissions.
P In its own operations, Atlas Copco has several 
goals that address resource and energy usage in 
order to minimize the costs and impact on the 
environment.
P All cooling agents used in Atlas Copco 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).
P Atlas Copco’s insurance company assesses and 
takes preventive measures to reduce the expo-
sure to property risks as a result of extreme 
weather conditions and the danger of natural  
disasters.
➔ Working proactively with environmental risks  
can provide significant opportunities to drive  
innovation at Atlas Copco.
➔ Given that many customers are operating in  
areas of extreme water stress or scarcity, water 
efficient or water recycling products can have  
a strong customer appeal. Thus, this presents  
a strong business opportunity to extend Atlas 
Copco’s innovations to the focused area of water 
consumption. 
➔ Climate change impacts and predictions can in-
duce changes in consumer’s habits and behavior. 
As a result of climate events Atlas Copco’s  
customers can become more risk averse and  
demand sustainable products from the Group.
HUMAN RIGHTS 
RISKS
(ESG note 8)
Atlas Copco operates in countries where the  
risk according to Amnesty International is high  
of human rights abuse, including child labor, 
forced or compulsory labor. 
 
Atlas Copco encounters customers, for instance 
in the mining industry, who are exposed to  
problems concerning environmental and human 
rights issues.
Risks to the Group’s reputation may also arise 
from the relationship with suppliers not comply-
ing with internationally accepted ethical, social, 
and environmental standards.
P Guidance and regular interaction to identify  
risks with well-established non-governmental  
organizations.
P Policies and procedures to match the standards 
in the UN Guiding Principles for Business and 
Human rights, which Atlas Copco has committed 
to since 2011.
P Due diligence process and the integration of  
internal controls for human rights violations in  
all processes. 
P The Group customer sustainability assessment 
tool is used.
P Supplier evaluations are regularly conducted in 
accordance with the UN Global Compact. 
➔ Following the UN Guiding Principles for Business 
and Human Rights to “do no harm” significantly 
reduces risks and costs; however a business’ 
ability to “do good” according to these guide-
lines also creates business opportunities. For  
example: continuing to develop a diverse work-
force can significantly increase Atlas Copco’s 
competitive edge and also increase the knowl-
edge and capacity to tailor products to the  
customer’s needs. 
➔ Working with human rights positively impacts 
both the employer brand and investor relations. 
➔ Strong business ethics promote internal stability 
while also creating a more stable market place.
EMPLOYEE  
RISKS
Atlas Copco must have access to skilled and  
motivated employees and safeguard the  
availability of competent managers to achieve 
established strategic and operational objectives.
P The Competence mapping and plan secures  
access to people with the right expertise at  
the right time. Recruitment can take place both 
externally and internally, Internal recruitment and 
job rotation are facilitated by the “Internal job 
market”. 
P Salaries and other conditions are adapted to  
the market and linked to business priorities.  
Atlas Copco strives to maintain good relation-
ships with unions.
➔ Motivated and skilled employees and managers 
are crucial to achieve or exceed business goals 
and objectives.
IT RISKS
The Group relies on IT systems in its day-to-day 
operations. Disruptions or faults in critical sys-
tems have a direct impact on production. Errors 
in the handling of financial systems can affect 
the company’s reporting of results.
Cyber security risks are increasing in importance 
and can have a major impact on Atlas Copco  
operations.
P Atlas Copco has a global IT security policy, includ-
ing quality assurance procedures that govern IT 
operations. Information security is monitored 
through continuous reviews, IT Security audits. 
Standardized processes are in place for the  
implementation of new systems, changes to  
existing systems and daily operations. 
P The system landscape is based on well-proven 
products.
P Cyber security is regularly discussed and ad-
dressed by the IT Security function. Awareness 
of cyber security risks increases the readiness to 
quickly address any attacks.
➔ Stable IT systems, secure IT environment and 
standardized processes increase efficiencies and 
reduce costs.
➔ Quick action to address a cyber attack gives  
opportunity to stable work environment and 
business continuity.
RISK
CONTEXT
MITIGATING FACTORS
OPPORTUNITIES
RISKS, RISK MANAGEMENT AND OPPORTUNITIES

40
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
INNOVATION
In an increasingly resource-restricted world, Atlas Copco’s research  
and development initiatives create value for the Group’s customers by  
continuously innovating sustainable products and services.

Atlas Copco 2014
41
THE YEAR IN REVIEW – ADMINISTRATION REPORT
SUSTAINABLE
MANUFACTURING
RESPONSIBLE
SOURCING
WASTE &
RECYCLING
ENERGY
EFFICIENCY
EFFICIENT
TRANSPORT
93%
REUSED, RECYCLED OR RECOVERED MATERIAL
OPTIMIZING CUSTOMERS’ PRODUCTIVITY
Atlas Copco delivers cutting-edge technology in the form of safe, reliable and energy- 
efficient products designed to optimize customers’ productivity and competitive  
advantage. The Group’s high quality service offerings ensure that the customers get the 
most out of every investment, keeping Atlas Copco First in Mind—First in Choice ®.
RESEARCH & DEVELOPMENT
EXPENDITURES, MSEK
2 991 
NUMBER OF  
EMPLOYEES IN R&D
3 142
READ MORE: 
Responsible 
sourcing page 48
Sustainable  
manufacturing 
and transport 
page 52
INVESTMENTS
GOALS
CUSTOMER VALUE
CUSTOMER FOCUSED GOALS
 	First in Mind—First in Choice ® 
for customers and prospects 
for all brands
	Increase customer loyalty
 	Increase customer energy  
efficiency by 20% by 2020
	Offer safe and reliable  
products and services
With world-class customers in every corner 
of the world, Atlas Copco’s biggest chal-
lenge is to continue to meet their need for 
sustainable products to increase their pro-
ductivity. Driving the Group’s innovations 
through cooperation with customers as well 
as partnerships with universities have proved 
to be a successful approach to maintaining a 
leading market position. Atlas Copco’s long-
lasting relationships with suppliers also 
allow the Group to leverage their compe-
tence in order to further develop product 
and service offerings. Atlas Copco’s value 
chain approach to innovations safeguards  
its customers’ productivity and satisfaction 
while contributing to Atlas Copco’s own sus-
tainability goals to reduce its environmental 
impact – a clear win-win situation. 
Product development from  
a lifecycle perspective
Atlas Copco takes a lifecycle approach  
to innovation, and some business areas have 
dedicated eco-design engineers who assess 
the impact of the Group’s sourced materials, 
product energy consumption and disposal 
options when developing products.
Choosing the right materials during the 
product design can impact the quality, shelf 
life and disposal of Atlas Copco’s products, 
but these decisions can have a major impact 
on society and the environment as well. For 
example, Atlas Copco’s supply chain also 
represents a large portion of the Group’s 
environmental footprint since much of the 
resource intensive activities, such as steel 
manufacturing, are carried out by business 
partners. Atlas Copco shares its customers’ 
interest in managing human rights and labor 
concerns in the value chain, to deliver 
responsibly sourced products and services.
Another significant portion of Atlas 
Copco’s environmental footprint concerns 
the use-phase of its products, with energy 
consumption making the most significant 
impact. Therefore, Atlas Copco’s product 
development projects have ambitious targets 
to reduce energy consumption. 
Products such as stationary compres-
sors, drill rigs, hydraulic breakers and indus-
trial tools can be returned, refurbished and 
resold as used equipment. Used equipment 
meets the same high standards as when it 
was new in terms of quality, performance 
and energy efficiency.
Customer focused innovations
The wide span of technologies used by  
Atlas Copco – from advanced computer 
control systems, hydraulics and pneumatics 
to specialized technologies such as air com-
pression or rock drilling – creates an exciting 
working environment for the Group’s  
development engineers in many countries. 
Atlas Copco’s research and development proj-
ects are driven by key criteria focusing on 
improving productivity, reliability, ergonomics, 
safety, and energy efficiency, which must be met 
in order for the solution to be approved. In 
response to customers’ needs to cut energy 
related costs Atlas Copco took the variable 
speed drive (VSD) innovations in compressors 
and used them in developing the next genera-
tion of vacuum pumps for general industry. 
These pumps will be introduced in 2015 and 
give customers energy savings of around 50%. 
Atlas Copco has advanced assembly 
tools and systems, and also offers a complete 
range of quality assurance equipment used 
at customers’ quality departments to test 
and calibrate pneumatic and electric assem-
bly tools to help minimize errors in the 
assembly process. 
Temperatures in mines can soar above 
50ºC and Atlas Copco’s customers face  
additional safety challenges like cave-ins and 
pollution from machinery. Therefore, Atlas 
Copco continues to focus on remote and 
autonomous solutions for mining equip-
ment. New construction equipment aim to 
reduce environmental impact by increasing 
energy efficiency, enhancing performance 
and reducing costs, such as those for fuel, 
labor and parts.
The number of people employed in 
research and development increased by

42
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
18% to 3 142 in 2014, primarily as a result  
of acquisitions. Most of the employees  
are based in Europe, but the rate of  
increase in Asia was high. 
The amount invested in product devel-
opment, including capitalized expenditures, 
increased 30% to MSEK 2 991 (2 306) corre-
sponding to 3.2% (2.7) of revenues and 3.9% 
(3.5) of operating expenses. The increase was 
primarily due to acquisitions. 
Product energy efficiency
Atlas Copco has a goal to increase customers’ 
energy efficiency by 20% by 2020, which is a 
challenging figure to consolidate at Group 
level due to the Group’s highly diverse prod-
uct portfolio. Therefore, no total figure for 
the Group is presented for 2014, instead the 
performance is highlighted with product 
lines from each business area. 
In 2014, Atlas Copco celebrated the 20th anniversary of a groundbreaking innovation 
that has had a major impact on energy efficiency in the industrial world. In the two 
decades since the company first introduced variable speed drive (VSD) technology into 
its air compressors, it calculates that industry has saved around 3 870 million kWh of 
electricity by using Atlas Copco VSD compressors.
The figure, based on a comparison with conventional fixed speed compressors,  
represents sufficient electricity to supply all of the households in the city of Paris for a 
year, and in terms of carbon dioxide emissions is equivalent to taking 560 000 cars off  
the road for a year.
In 2013, Atlas Copco launched the VSD+ range, offering an additional 15%  
im­­provement in energy savings to take the total to 50% on average. With compressed  
air accounting for around 10% of overall energy consumption in industry, the VSD 
technology has been a significant contributor to energy efficiency and the potential  
for further savings is still there. Calculations suggest that if every oil-injected screw  
compressor sold in the world would be a VSD+, the annual energy savings would  
equal some 6 TWh. (ESG note 10).
ATLAS COPCO’S  
REVOLUTIONARY  
VSD COMPRESSORS  
HAVE SAVED  
3 870 MILLION kWh  
OF ELECTRICITY IN  
20 YEARS 
Each product line measures its energy effi-
ciency in a manner that best reflects its  
application at the customer site. For exam-
ple, in 2014 surface drill rigs achieved 17% 
improvement in energy efficiency compared 
to 2010 by reducing the grams of fuel needed 
per m3 of rock excavated. Electrical nutrun-
ners, which are significantly smaller in size 
and have a different application in the vehi-
cle manufacturing industry, achieved a 4% 
increase in energy efficiency for their cus-
tomers. The portable compressor line XAHS 
186, which is popular in Europe and used for 
abrasive blasting, shotcreting and construc-
tion drilling applications, delivered an improve-
ment of 29% in 2014. The variable speed 
drive compressors (VSD) improved energy 
efficiency by 19% in 2014 (ESG note 10).
0
500
1 000
1 500
2 000
2 500
3 000
2014
2013
2012
2011
2010
0
1
2
3
4
5
6
MSEK
%
Research and development expenses,
including capitalized expenditures
Total as % of revenues
RESEARCH AND DEVELOPMENT  
EXPENDITURES
… is enough to power  
all households in Paris 
for a year
3 870 000 000 kWh

Atlas Copco 2014
43
THE YEAR IN REVIEW – ADMINISTRATION REPORT
SUSTAINABLE
MANUFACTURING
RESPONSIBLE
SOURCING
WASTE &
RECYCLING
ENERGY EFFICIENCY
EFFICIENT
TRANSPORT
Understanding the total footprint of a purchase is important for many of Atlas Copco’s 
customers who work actively with their supply chains. In 2014, Atlas Copco was recog-
nized as best practice by a key customer for the management of greenhouse gas emis-
sions related throughout the life­cycles of the products sold. The Vale Greenhouse Gas 
Management Forum was held in Rio de Janeiro, Brazil, where Atlas Copco discussed its 
approach to responsibly manufacturing and transporting its energy-efficient products 
with minimal environmental impact. For example, many of Atlas Copco’s production 
centers such as the one in Örebro have switched to renewable energy, and significant 
investments have been made to improve the logistics process. The Group discloses  
customer-specific information regarding sustainable productivity upon request, and 
strives to re-engineer the industry standards with its innovative products and solutions.
ATLAS COPCO’S  
CDP DISCLOSURE SCORE  
(AS A SUPPLIER):
94/100
CDP SUPPLY CHAIN  
AVERAGE: 53*
PRODUCT DEVELOPMENT FROM 
A LIFECYCLE PERSPECTIVE
The Group has a goal  
to choose transportation 
methods that lower  
CO2 and costs.
Find out how Atlas 
Copco reduces  
the organization’s 
footprint in the  
Environment  
section.
Up to 10% of the total  
energy consumption in 
manufacturing worldwide 
comes from compressed air. 
The new VSD+ compressor 
can achieve average energy 
savings of 50%. 
To learn more about how Atlas Copco 
works with responsible sourcing, go  
to the Business partners and Society 
sections of the report.
Atlas Copco considers how  
to make products more easily  
recyclable from the very start,  
by designing them with  
the end-of-life in mind.
* 	Disclosure scores are only an assessment of the 
quality and completeness of a company’s response. 
	 (ESG note 2)
ATLAS COPCO’S LIFECYCLE APPROACH RECOGNIZED 
AS BEST PRACTICE BY KEY CUSTOMER
EXAMPLES OF EXTERNAL DRIVERS:
Customers’ demands and requests
Laws and regulations
User trends
Design trends
Competition
Increased safety
Improved ergonomics
Environmental impact
EXAMPLES OF INTERNAL DRIVERS:
New technologies
New applications 
Reduced lead time
Increased quality
Increased productivity
Standardization and modularization
Increased safety
Improved ergonomics
Environmental impact
THE DRIVING FORCES FOR  
NEW PRODUCT DEVELOPMENTS  
ARE BOTH INTERNAL  
AND EXTERNAL

44
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
EMPLOYEES
Atlas Copco’s success is built on strong values and the talented employees who 
carry them. The Group believes in providing its people a working environment that 
sets a high standard for leadership and provides opportunities for each individual 
to develop professionally. Offering a diverse workplace with good health, safety 
and labor practices is an important part of Atlas Copco’s brand as an employer,  
and thereby a key success factor for the Group.

Atlas Copco 2014
45
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Building a fair, diverse workplace
Like many of its industry peers, Atlas Copco’s 
ambition to recruit a workforce that reflects 
the diversity found in society faces its first 
challenge in the classrooms. Atlas Copco’s 
strategy to encourage more women and 
national minorities to join engineering pro-
grams is through active engagement with 
local universities. For example, a customer 
center in China has run a scholarship pro-
gram with four selected universities that ben-
efits 123 students. The scholarship strives to 
ensure that a minimum 15% of final winners 
are from the non-Han nationality, a minor-
ity in China. It also has a special award for 
“Female Volunteers” and “Female Excellent 
Teachers” to encourage gender diversity. The 
proportion of female recent graduates 
recruited during the year among white-collar 
workers was 31% (22).
The Group is committed to promoting 
equal opportunity in its hiring and promo-
tion processes. A wide range of efforts to 
recruit diversity are in place globally, such as 
ensuring job ads are not subject to gender 
specifications. In 2014, women represented 
17.1% (16.8) of Atlas Copco’s workforce.
 Aside from recruitment, Atlas Copco 
puts great effort into creating a fair and 
inclusive workplace that can support a 
diverse workforce. In 2014, Atlas Copco 
Mexico won an award for its workplace  
policy that promotes flexible work hours for 
new mothers and other benefits. Many com-
panies, such as Atlas Copco Peru, have taken 
significant efforts to reduce the barriers for 
women to transition back to work after hav-
ing children, such as creating facilities for 
nursing mothers. Atlas Copco Russia had  
a focused initiative to recruit physically dis-
abled individuals, a group that often faces 
stigma in the local society. These examples 
represent how Atlas Copco companies 
establish local diversity policies and guide-
lines in alignment with Group policy, local 
laws and regulations, and local ambitions. 
When it comes to leadership, Atlas 
Copco strives to strike a balance between 
developing the local workforce while also 
offering international opportunities through 
internal mobility. Therefore, managers 
whose nationality differ from the country 
where they are stationed, focus on develop-
ing local leaders while gaining international 
professional experience which equips them 
for even more challenging positions within 
the Group. Overall, Atlas Copco has manag-
ers on international assignments coming 
from 56 countries and working in 61. In 
2014, a total of 62% (63) of all senior man-
agers were locally employed. 54 nationalities 
are represented among the 417 most senior 
managers worldwide. The share of Swedish 
managers on international assignments has 
decreased from 23% in 2001 to 11% in 2014. 
The proportion of women in management 
positions increased to 16.6% (16.2). 
Growing and mobilizing talent globally 
Atlas Copco’s goal is to encourage mobility, 
across geographical, organizational and  
cultural boundaries. This is important for 
GEOGRAPHICAL SPREAD  
OF EMPLOYEES
PROFESSIONAL CATEGORY  
SPREAD OF EMPLOYEES
Asia/Australia, 30%
North America,
14%
Africa/Middle 
East, 6%
Europe, 42%
South America, 8%
Administration, 
16%
Research and 
development, 7%
Production, 27%
Service, 29%
Sales, 13%
Marketing, 8%
ATTRACT, RECRUIT AND DEVELOP  
EMPLOYEES
Atlas Copco’s people management strategy is to attract, recruit and develop 
skilled coworkers, while expecting managers to take responsibility for developing 
their employees, their organizations and themselves. 
NUMBER OF EMPLOYEES
44 056
DECEMBER 31, 2014
Flexible work times
and other benefits
for new mothers in 
South America.
91% of Atlas Copco is 
certified in accordance 
with OHSAS 18001.

46
Atlas Copco 2014
0
10
20
30
40
50
2014
2013
2012
2011
2010
hrs
AVERAGE HOURS OF TRAINING  
PER EMPLOYEE
0
20
40
60
80
100
2014
2013
2012
2011
2010
Goal: 100%
%
PROPORTION OF APPRAISALS  
AMONG EMPLOYEES
developing competence, but also for success-
ful integration of newly acquired companies. 
Experienced managers in senior positions 
lead the integration process and make it pos-
sible to establish the Group’s Business Code 
of Practice, values and vision in an efficient 
and pragmatic manner. In 2014, the average 
number of training hours per employee was 
41 (40) hours and 82% (82) of employees  
had an appraisal.
One measure of success of the focus on 
competence building within Atlas Copco is 
the percentage of employees with a univer-
sity degree. In 2014, 53% (53) of the white-
collar employees had a university degree. 
Developing a leadership pipeline 
In order to retain the competence, the Group 
has a target to recruit 85% of managers 
internally, and the outcome in 2014 was 
88%. One of the key success factors to 
retaining talent while still growing compe-
tence and encouraging mobility, is the inter-
nal job market, which was created in 1992.  
In 2014, 3 856 positions were advertised, of 
which 349 were international. In 2014, inter-
nal mobility among employees was 7.2% 
(7.7). Overall external recruitment reached 
10%, excluding acquisitions. 
Employee turnover can be challenge for high growth 
markets such as China, a risk which the Group 
manages through talent programs. For example, 
Industrial Technique‘s Challenger program focuses 
on ensuring a solid pipeline of talents for specialist 
functions and leadership. It uses global cross-
functional projects to challenge, develop and 
motivate talents and increase mobility. 
The program also has a 180/360 follow up with  
the participants and coaching sessions with the 
manager and HR manager. As a result, in 2014 the 
business area retained 88% of the managers who 
participated, and 45% of these managers also  
took on new assignments within the Group, of  
which 4% were positions abroad. 
PROGRAM TO DEVELOP AND RETAIN TALENTED EMPLOYEES 
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Safety and health enhance productivity 
Atlas Copco has a global Safety, Health and 
Environmental (SHE) policy to ensure that 
workplaces have robust standards for safety, 
health and ergonomics. In 2014, 91% (repre-
senting 89% of employees) of the major 
companies in the Group were certified in 
accordance with the international standard 
OHSAS 18001. In terms of the workforce 
profile, 69% of Atlas Copco employees were 
dedicated to building world-class products 
for its customers or delivering high-quality 
service and sales offerings. This involves 
working with heavy machinery or driving 
long distances to reach customers which can 
often be dangerous if proper safety routines 
are not followed. 
There was one fatality reported in 2014, 
which involved a road safety accident in 
Thailand. The Group has taken additional 
steps to plan a new safety concept that 
emphasizes road safety and defensive driv-
ing behavior, which will be rolled out in 
2015. The number of accidents per million 
working hours for Atlas Copco employees 
dipped to 4.7 (5.4) showing a favorable trend 
(ESG note 4). In 2014, Atlas Copco included 
reporting on accidents and incidents in the 
additional workforce as well. The resulting 
calculation of accidents is 4.8 per million 
working hours. The number of incidents per 
million working hours stayed stable, and the 
new safety concept will strive to drive behav-
ioral changes regarding safety while promot-
ing the importance of reporting accidents 
and incidents.  
Having a healthy work environment is  
as important for Atlas Copco’s productivity 
as supporting employees with a healthy life-
style. Atlas Copco companies design health 
and wellness programs to meet the specific 
needs of their country or region. For exam-
ple the HIV/AIDS pandemic is a major con-
cern in some countries where Atlas Copco 
operates and with a high prevalence in the 
age group (15–49 years) that would impact 
the workforce the most. In other countries, 
diseases such as diabetes are a growing  
concern and employees are offered wellness 
programs including consultation and  
medication.
Atlas Copco strives to promote health 
and wellness but also accommodates for the 
realistic possibility that employees may need 
time off for health reasons. This is reflected 
in the Group goals and in 2014 sick leave was 
at 1.9% (2.0) which is below the accepted 
level of 2.5%.

Atlas Copco 2014
47
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Employee satisfaction survey results
Atlas Copco conducts a Group employee 
survey at least every second year, the most 
recent one was carried out in 2014. The  
survey is available, in 32 languages in web 
and paper-based formats, to all employees 
(excluding employees at Edwards, which  
was recently acquired). 
YEAR
% RESPONSE RATE
(vision: 100%) 
2014
88
2012
85
2010
79
2008
69
The survey covers various topics such as 
confidence in leadership, workplace culture, 
customer commitment and Atlas Copco’s 
employer branding potential. In 2014, more 
than 35 000 employees participated in the 
survey, giving a respond rate at a record high 
88%. All areas in the survey remain on a  
stable, high level. Customer commitment is 
still valued higher than any other area, which 
shows the important connection between 
proud employees and loyal customers. Local 
management will follow up on areas identi-
fied for improvement in the coming year, and 
hold employee workshops to improve weak-
nesses and capitalize on strengths. 
0.0
0.5
1.0
1.5
2.0
2.5
2014
2013
2012
2011
2010
%
Goal: <2.5%
SICK LEAVE 
FATALITIES DURING 2014:
1
2013: ZERO
INCIDENTS PER MILLION 
WORKING HOURS
21
2013: 21
ACCIDENTS PER MILLION 
WORKING HOURS
4.7
2013: 5.4
0
2
4
6
8
10
2014
2013
2012
2011
2010
Goal: Zero 
NO. OF ACCIDENTS PER  
ONE MILLION HOURS WORKED
Atlas Copco’s ambition is to systematically grow 
competence in the organization and to minimize the 
time it takes to transform that knowledge into 
performance. In 2014, Atlas Copco launched Time to 
Competence, which drives the rapid and efficient 
uptake of predefined core, functional and product 
specific competencies and skills. The trainings are 
delivered through Atlas Copco’s Academy at Group, 
divisional and regional levels, which offers both 
systematic and on-demand training. Tools such as 
rapid e-learning and enhanced competency models 
have already been developed, and initiatives such  
as global English training concepts are underway. 
The success of the Time to Competence approach 
will be monitored through a number of key 
performance indicators on the quantity and quality 
of the training and the maturity of the learning 
culture within the Group. 
ATLAS COPCO’S GOAL IS TO  
ENCOURAGE MOBILITY. 
THE INTERNAL MOBILITY 
WAS 7% IN 2014.
7%
FASTER RESULTS THROUGH TIME TO COMPETENCE
Committed to high labor standards
As a voluntary member of the UN Global 
Compact since 2008, Atlas Copco ensures 
that advised labor practices such as the right 
to collective bargaining are included in the 
Business Code of Practice, which is updated 
regularly. The Group views trade unions and 
employee representatives as a necessary and 
valuable support system for its people, and 
fosters relationships based on mutual respect 
and constructive dialogue. In 2014, 39% of 
all employees were covered by collective bar-
gaining agreements, and it is estimated that 
several hundred consultations/negotiations 
took place with unions regarding working 
conditions and organizational changes. As a 
decentralized organization, this engagement 
and constructive dialogue with labor unions 
takes place at a local level. In countries 
where no independent labor union may exist, 
Atlas Copco has taken measures to establish 
forums for employer/employee relations, for 
example in China, through environment and 
safety committees. A non-discrimination 
policy covers all employees and the Business 
Code of Practice also covers employee 
rights. For full disclosure on wages and 
employee benefits, see note 5.

48
Atlas Copco 2014
THE YEAR IN REVIEW 
BUSINESS PARTNERS
Business partners such as suppliers, sub-contractors and joint venture  
partners are crucial strategic partners for Atlas Copco’s success. Nurturing 
long-term relationships with business partners is mutually beneficial,  
securing the Group’s competitive edge and development potential in a  
responsible and sustainable way. This is why Atlas Copco is committed  
to working with business partners who share the Group’s high standards  
of quality, business ethics and resource efficiency.
Atlas Copco’s purchasing strategies are 
decentralized to give the organization higher 
flexibility. Purchasing councils oversee supply 
chain management at a divisional level, but 
come together as a part of the Group pur-
chasing council to develop central policies 
and tools that impact all operations. Local 
purchasing (non-core) is encouraged to gen-
erate societal value in the communities where 
Atlas Copco operates, by creating job oppor-
tunities as well as generating direct and indi-
rect income. This is mostly carried out by 
individual companies and also facilitates 
close relationships with local partners to  
capitalize on opportunities to further improve 
quality and efficiency, and decrease environ-
mental impact from transport.
However, business partners are not lim-
ited to suppliers alone. The Business Code of 
Practice includes other key players such as 
subcontractors, agents and distributors in the 
definition and therefore Atlas Copco has 
taken a value-chain approach to working  
with business partner issues.
All business partners are impartially 
evaluated on parameters including price, 
quality, reliability as well as key environmen-
tal, social and ethical concerns. The main 
tools for evaluating business partners are the 
10-point checklist based on the UN Global 
Compact and the International Labour 
Organization’s Declaration on Fundamental 
FIGHTING CORRUPTION WITH INTEGRITY PACTS 
Many markets where Atlas Copco operates, such as Indonesia, rank high on Transparency  
International’s corruption perception index. Atlas Copco Indonesia engages in non- 
exclusive but binding integrity pacts with its suppliers, distributors and agents. Companies 
who have signed an integrity pact commit to working with the highest ethical standards 
and transparency in all of their business dealings. This also unifies Atlas Copco and its 
business partners effectively as a block of companies with more influence and ability to 
fight corruption. Along with the integrity pact, Atlas Copco Indonesia also engages with 
business partners through training and direct dialogue on the Group’s business partner  
criteria. The integrity pact approach is being used by Atlas Copco in other markets where 
corruption is also a challenge.
GEOGRAPHICAL SPREAD OF SUPPLIERS
Asia/Australia, 
31%
North America,
14%
Europe, 54%
South America,
1%
Principles and Rights at Work, as well as 
through on-site visits (ESG note 5). Tier 1 
suppliers are expected to work to safeguard 
Atlas Copco’s standards for Tier 2 suppliers. 
In addition to this, for agents and distribu-
tors, the Group started using the customer 
sustainability tool in 2013 in order to investi-
gate potential risks and develop the relation-
ships further (ESG note 8).
Supplier evaluation processes and  
local training efforts
Atlas Copco has an extremely large interna-
tional supplier base, which presents signifi-
cant challenges in maintaining supply chain 
standards. Atlas Copco prioritizes follow-up 
activities with suppliers who represent the 
bulk of the annual purchase value as well as 
the highest risk in order to safeguard that the 
Business Code of Practice is being followed 
while still using our resources efficiently. In 
2014, the Group continued to work with sig-
nificant suppliers, with a focus on potential 
human rights and corruption risks. As a 
result, a greater proportion of sourcing from 
high-risk countries is followed up through 
self-assessment questionnaires or on-site 
audits, even if purchasing volumes are low. 
Atlas Copco’s business partner selection letter 
was also updated in 2013 with the objective 
to improve compliance as well as to integrate 
conflict minerals into the human rights 
based requirements. Compliance with the 
environmental, social and business ethics 
clauses in the checklist is required for 100% 
of new agreements. However, for non-red-
flag issues (such as having environmental 
management systems), Atlas Copco tries to 
work with business partners to set up an 
action plan to help them meet the criteria 
within 6–12 months’ time.
Strengthened approach to human  
rights and corruption risks
Atlas Copco’s business partner network 
includes markets with a high risk from a 
human rights and corruption perspective. 
This risk is particularly heightened in  
conflict-affected regions, and in 2013  
Atlas Copco initiated processes to ensure 
that the Group is not complicit in human 
rights violations in accordance to its  
commitment to the Guiding Principles on 
Business and Human Rights. The lack of 
enforcement of legal and political infra­
structure in some of these complex markets 
represents a challenge, however Atlas Copco 
has received support and advice from inves-
tors and non-governmental organizations 
through stakeholder dialogue.
Performance from supplier evaluations 
Supplier evaluations are primarily carried 
out by product companies. A supplier is  
considered approved if Atlas Copco has  
performed an assessment at the supplier’s 
site and reported that there is no risk of  
violating the the Business Code of Practice, 
or that the supplier has acted on all develop-
ment suggestions for the action plan from a 
previous evaluation. In 2014, 1 369 (846)  
significant suppliers were audited for quality 
and 1 192 (670) for safety, health, environ-
mental and ethical standards. Of those, 17 
(17) significant suppliers were rejected due to 
quality issues and another 14 (8) for safety, 
health, environmental and ethical standards 
(ESG note 5).

SOCIETY
Given its global reach Atlas Copco has an influence on the economic 
and social development of the countries in which it operates. The Group 
is expected to demonstrate that influence in a positive way and strives 
to be a good and reliable corporate citizen by creating shared value.

50
Atlas Copco 2014
THE YEAR IN REVIEW
In the long-term, sound business practices are economically profitable 
since business is more efficient and establishes the Group’s reputation  
as a reliable and trustworthy partner that conducts business with integrity. 
From a short-term perspective, following Atlas Copco’s principles could 
have an adverse impact on some business opportunities.
Zero tolerance against corruption
Corruption has very negative global conse-
quences and is both a cause of poverty and a 
barrier to overcoming it. The fight against 
corruption is also central to working with 
human rights and environmental impacts, 
since corruption can cripple the governmen-
tal bodies and processes needed to address the 
issues. The Atlas Copco Group has a zero tol-
erance policy, which applies to all employees 
as well as the Board of Directors. The Board 
has also explicitly communicated that corrup-
tion is never an acceptable excuse for securing 
a sale, and this applies also to facilitation pay-
ments. This basic rule strengthens the brand 
and contributes to fair market competition.
Prevent, detect, react
Not accepting corruption may sound simple, 
however, being a global company that oper-
ates in many cultures with different norms 
means that it is a demanding challenge to 
implement. The goal of no corruption or 
bribes is supported by a policy, procedures, 
training and monitoring process. When inci-
dents are reported, firm action is taken on a 
case-by-case basis (ESG note 6). There are no 
negative consequences, such as demotion, 
HOTLINE
47 possible violations of  
the Code were reported  
through the hotline during 2014
The nature of the violations 
mostly related to organiza-
tional changes and personal 
issues. Activities to address 
the reports include internal 
audits, job rotation and com-
munication. (ESG note 6)
penalty or other reprisals, for employees refus-
ing to receive or pay bribes or for reporting 
violations. Internal control procedures are set 
up to minimize the risk of corruption and 
bribes, e.g. segregation of duty. Internal audits 
include compliance to the Business Code of 
Practice. Awareness of, and compliance with, 
principles of integrity in all business dealings 
is a priority for Atlas Copco. 
The Group hotline can be used by employ-
ees to report behavior or actions that are, or 
may be perceived as, violations of laws or of 
the Business Code of Practice. It serves as a 
complement to similar processes on country 
level. The Group Legal department is responsi-
ble for managing the hotline and ensures 
that reports are treated confidentially. The 
person reporting is guaranteed anonymity.
Training 
The Business Code of Practice is given to all 
new employees and training is provided 
globally. Managers also receive in-depth 
classroom training with dilemma cases. The 
training on corruption developed by the UN 
Global Compact was taken by managers 
before signing the Business Code of Practice 
compliance statement. 
Human rights
Human rights are integrated into the Group 
goals and are driven in the organization by 
the Atlas Copco Business Code of Practice. 
The Group’s Human Rights Statement is 
published on the Atlas Copco website, and 
the Group strives to work with human rights 
through its own operations as well as 
through its business relations. Atlas Copco’s 
business partners are expected to observe the 
same high standards regarding human rights 
as Atlas Copco does. Through internal con-
trol processes Atlas Copco ensures that 
Group companies have internal processes in 
place to inform customers and business part-
ners about its human rights policies and to 
assess possible reputational risks. In 2014, 
the Human Rights and Ethics Steering  
HOW ATLAS COPCO WORKS WITH HUMAN RIGHTS IN THE VALUE CHAIN
Atlas Copco’s Business Code of Practice supports the UN International Bill of Human Rights and  
is a central policy to guide the business in working with all issues, including human rights.
10
SUPPLIERS
THE GROUP’S OWN  
OPERATIONS
CUSTOMERS
COMMUNITY
Atlas Copco has integrated the UN 
Global Compact principles into 
supplier evaluation and management. 
Read more in the Business Partners 
section on page 48. 
The Group’s operational goals strive 
to create safe, healthy and fair 
working environments. Read more in 
the Employees section on page 44.
The Group is strengthening its 
approach using the UN Guiding 
Principles on Business and Human 
Rights. Read more in ESG note 8.
Atlas Copco pays the fair, and legal 
amount of taxes to support the 
communities the Group operates in. 
Read more in ESG note 9.
Prohibition of child labor and forced 
labor, responsible sourcing from high 
risk or conflict affected regions.
Ensuring that employees have fair 
labor and working conditions, 
diversity in the workplace and the 
right to join trade unions.
Product safety, protecting standard 
of life by minimizing environmental 
impact through usage of products, 
issues related to community 
relocation, security concerns.
Community engagement activities 
promote the access to health, 
education and safe development of 
children and vulnerable groups, as 
well as disaster relief.

Atlas Copco 2014
51
THE YEAR IN REVIEW 
Committee initiated trainings and continued 
to develop Atlas Copco’s approach. The 
Committee reports to the Compliance 
Board, which includes two members from 
Group Management. The Committee also 
offers support to the organization as work to 
implement the UN Guiding Principles on 
Business and Human Rights.
Due diligence on human rights
A process to assess and manage the social 
impact of operations on communities and 
human rights was developed and tested in 
Ghana and Kazakhstan in 2011. In 2014, 
Atlas Copco investigated human rights 
issues related to the construction of a dam 
project in Colombia and worked with indus-
try peers, governmental representatives and 
civil society to develop an action plan. The 
plan is based on the recommendations of the 
UN Guiding Principles in order to increase 
Atlas Copco’s leverage and positive contri-
bution. Due diligence activities are being 
planned for Myanmar in 2015 (ESG note 8). 
Customer conduct
Atlas Copco recognizes the importance of 
safeguarding its reputation by working with 
customers who adhere to the same standards 
for environmental, ethical and social respon-
sibility. The Group continues to build aware-
ness of its ethical guidelines. The roll out of 
the customer sustainability assessment tool 
continued, and the Group’s overall human 
rights strategy was piloted with stakeholders 
in various markets (ESG note 8). This tool is 
already in use in cases of financing by credit 
export agencies, and Atlas Copco has shared 
it with industry peers who are also develop-
ing their approach.
Community engagement and charity
Water for All is Atlas Copco’s main 
employee-led initiative, and the Group 
matches the financial donations made by 
employees with double the amount. The 
Group’s Community Engagement and Char-
ity Policy also encourages companies to give 
support following natural and humanitarian 
disasters in the form of products, time or 
money. The community engagement and 
charity spend during 2014 was distributed 
accordingly: cash donations 90%, in kind 
1%, and time value 9%. In 2014, the world 
saw a new outbreak of Ebola, a virus that 
causes severe illness and often death. The 
outbreak spans several countries where 
Atlas Copco has sales, via distributors, but 
no operations, mainly Guinea, Liberia and 
Sierra Leone. To secure the health of its 
employees, the Group banned travel to those 
three countries and took other precautions 
such as travel advice, such as limiting the use 
of overpopulated buses, and purchase of 
preventive equipment such as sanitizers for 
personnel in several countries. In total, 1% 
of Atlas Copco’s community and charity 
investments went towards disaster relief. 
Development and distribution of 
economic value
Atlas Copco creates employment and finan-
cial stability through subcontracting manu-
facturing and other activities. Operating costs 
including costs to suppliers for goods and ser-
vices, functional costs deducted for employee 
wages and benefits amounted to MSEK 
56 460 (49 079). Employee wages and benefits 
paid increased by 14% to MSEK 20 826 
(18 274). The increase was primarily due to 
acquisitions.
The Group’s providers of capital, for 
example shareholders and creditors, provide 
funds to finance the asset base that is used to 
create economic value. In return, these stake-
holders receive annual dividend and interest. 
The costs for providers of capital including 
dividend, increased by 1% to MSEK 7 919 
(7 853).
Atlas Copco contributes to economic 
development within the regions where it 
operates, through payments to pension 
funds and social security, and payments of 
taxes, social costs and other duties. In 2014, 
the cost for direct taxes to governments 
decreased 3% to MSEK 4 169 (4 286). The 
Group has been in dialogue with stakehold-
ers regarding disclosure of taxes by country 
(note 9 and ESG note 9). Community invest-
ments amounted to MSEK 17 (14).
The economic value retained decreased 
1% to MSEK 5 240 (5 311). 
WATER FOR ALL – 30 YEARS  
OF EMPLOYEE COMMITMENT
In 2014, the Atlas Copco Group’s main 
community engagement initiative Water  
for All celebrated 30 years. It was founded  
in 1984 by Atlas Copco employees and 
supports projects that give people in need 
access to clean drinking water. By the end  
of 2014, the initiative had representation  
in more than 35 countries, with more under 
way. All local chapters are initiated and  
run by Atlas Copco employees who also 
contribute to the same through donations, 
often via their salaries. All donations  
are doubled by the company. Since the 
start, Water for All has provided access to 
clean drinking water to more than 1.5 
million people.
More information:
www.water4all.org

52
Atlas Copco 2014
THE YEAR IN REVIEW
ENVIRONMENT
PROPORTION OF ENERGY CONSUMPTION
WASTE DISPOSAL* 
Direct energy, 
non-renewable, 
27%
Indirect energy,
renewable, 34%
Indirect energy,
non-renewable, 39%
Material 
recycling, 70%
Landﬁll, 7%
Material 
reuse, 4%
Energy 
recovery, 19%
34 045 tonnes
1 887 tonnes
9 189 tonnes
3 208 tonnes
*	of which regulated waste 4 710 tonnes
Atlas Copco strives to reduce its  
environmental footprint across  
the value chain and delivers energy-
efficient products designed with  
a life cycle approach. 
Impact from acquisitions
Atlas Copco’s strategy for growth relies 
partly on acquisitions, which can have an 
influence on the Group’s environmental  
performance. A product company in China 
acquired in 2013 uses water for heat treat-
ment and other processes, and this environ-
mental aspect was a focus area for improve-
ment. In 2014, the heat treatment plant 
began using a recycled water system and bro-
ken penstocks that deliver water have been 
repaired to reduce consumption. This lead 
to a reduced the water consumption by 
about 11 000 m3. Furthermore, a separate 
water meter has been installed to improve 
the accuracy and efficiency of water man-
agement. Heating furnaces have been 
repaired to reduce emissions and energy con-
sumption and an environmental awareness 
training for employees is currently ongoing 
at this site.
Another recent acquisition, Edwards, is 
currently one of the top emitters of CO2 
from both energy and transport and also 
focusing on reducing waste. Compared to 
other product companies, these entities con-
duct extensive machining operations in 
house, which results in a comparatively 
higher consumption pattern. Other reasons 
include air-conditioned shop floors that are 
necessary for product tolerance reasons. 
Investments to improve the environmental 
impact are under way and include activities 
such as switching to LED light sources and 
to lower the electricity consumption related 
to temperature regulation. Logistics effi-
ciency efforts are also ongoing in order to 
reduce air freight. All Asian service hubs for 
Edwards now have sea freight routes, and the 
same is being implemented for other hubs as 
well. This has resulted in significant cost sav-
ings while reducing the environmental 
impact. 
Environmental risk management
Atlas Copco face risks driven by changes in 
environmental regulations, availability of 
resources and other developments. Manag-
ing these risks, can also create opportunities.
Energy security 
Diversifying sources of energy to include 
renewable sources not only has a positive 
environmental impact but can also benefit 
the business by protecting it from price 
fluctuations in the availability and afford-
ability of traditional energy sources. In 
2014, 34% (37) of energy consumption in 
production sites came from renewable 
sources such as wind energy, hydropower 
and solar power. Growth markets such as 
India rely heavily on non-renewable sources 
as coal, however rapid population growth 
makes it difficult for energy production to 
keep up with the demands. In 2014, Atlas 
Copco’s product company in Hyderabad, 
India, switched to solar power, which is 
estimated to keep the energy cost and  
supply steady in the long-term. While it is 
important to prioritize switching to renew-
able energy sources in such markets, Atlas 
Copco faces significant challenges in mar-
kets where governmental infrastructure is 
not in place to supply alternative energy, 
especially in regions where solar energy is 
not a viable option.
Waste recovery
The main raw material going into the  
process is steel, and scrap metal represents 
the most significant portion of waste.  
Practically all of this scrap is reused or  
recycled. There are initiatives to reduce land-
fill waste, as well as the waste generated from 
packaging materials. 
Hazardous waste in Atlas Copco’s opera-
tions includes primarily cadmium, beryllium 
and lead. Atlas Copco tracks various catego-
ries of waste from the production process, 
including regulated (sometimes referred to as 
hazardous) waste. Restricted substances are 
not yet legally excluded from use but should 
be replaced according to a plan that takes into 
account technical and financial aspects. Pro-
hibited substances are not allowed in the 
Group’s products or processes. In 2014, Atlas 
Copco initiated an internal survey to follow 
up the compliance of these lists and to iden-
tify improvement areas. Group companies 
monitor the handling of hazardous waste by 
business partners. 
Water risk management
With operations in several countries facing 
water scarcity, Atlas Copco has started to 
use water indices to identify operations 
located in water-risk areas. Group compa-
nies in these areas should implement  
a water-risk management plan, from  
physical, legis­lative or cost perspectives. 
Innovative product design also aims to 
477 206 000 kWh ENERGY 
FROM OPERATIONS…
IS ENOUGH  
TO POWER  
ONE SWEDISH  
HOUSEHOLD  
FOR  
58 066 YEARS
… OR ONE INDIAN  
HOUSEHOLD FOR  
616 942 YEARS
ESG note 3
Atlas Copco’s full environmental  
performance can be found in ESG note 3.

Atlas Copco 2014
53
reduce water use when drilling to explore  
for minerals, for example. Business areas 
analyze reported data to identify the highest  
consuming entities in order to focus the 
efforts to reduce the impact.
Investing in manufacturing efﬁciency
Reducing energy consumption can reduce 
operational costs for Atlas Copco as well as 
for customers. In 2014, the Group launched 
a focused campaign to increase environmen-
tal awareness and resource efficiency, which 
is expected to show results in the coming 
year. 
Process efﬁciencies in operations
Wuxitec, a manufacturing facility in China, 
used to be the largest water consumer for the 
Compressor technique business area. The 
site achieved a significant reduction, includ-
ing a 40% reduction from the previous year 
during the peak consumption month as a 
result of careful mapping of water consump-
tion and targeted activities such as upgrad-
ing cooling towers. All employees at the site 
are involved and engaged in the review of  
the daily water consumption scorecards. 
Significant investments have been made to 
upgrade equipment at various sites which 
improves the energy efficiency of the sites 
and also reduces waste.
Logistical efﬁciency
Two of the Group’s largest distribution  
centers achieved a reduction in gram CO2 
per tonne km by 65% and a 33% reduction 
in cost as a result of consolidating their 
deliveries to a common logistical center in 
Russia and switching from air to road trans-
port. Air shipments have been reduced to 
the transport of breakdown or emergency 
orders only, and other modal shifts have 
also been introduced to improve the envi-
ronmental impact and logistics efficiency.
206 120 TONNES OF CO2  
FROM TRANSPORT WOULD FILL A CUBE THE  
HEIGHT  OF THE EMPIRE STATE BUILDING
1 KG OF CO2 WILL FILL   
AN 811.7 mm HIGH CUBE 
ESG note 3
0
50
100
150
200
250
300
350
2014
2013
2012
2011
2010
’000 tonnes
CO2 emissions (transport) 
 
0
20
40
60
80
100
120
140
Index
Index in relation to cost of sales
CO2 EMISSIONS FROM TRANSPORT
Steady in absolute CO2 emissions 
due to volume effects and transport  
efﬁciency measures balancing the 
effect of acquisitions
Goal 2020
Goal
0
100
200
300
400
500
600
700
2014
2013
2012
2011
2010
GWh
0
20
40
60
80
100
120
140
Energy consumption
Index
Index in relation to cost of sales
ENERGY CONSUMPTION
0
100
200
300
400
500
600
700
800
2014
2013
2012
2011
2010
’000 m3
0
20
40
60
80
100
120
140
160
Water consumption
Index
Index in relation to cost of sales
A relative decrease in water  
use is primarily due to efﬁciency  
measures and proactively  
addressing leakages
WATER CONSUMPTION
An increase in energy consumption  
primarily due to acquisitions which  
have manufacturing processes that  
require strict temperature control.
0
30
60
90
120
150
180
210
2014
2013
2012
2011
2010
’000 tonnes
CO2 emissions (energy)
 
0
20
40
60
80
100
120
140
Index
Index in relation to cost of sales
CO2 EMISSIONS FROM ENERGY
Goal 2020
An increase in CO2 emissions from  
energy, primarily due to acquisitions.

54
Atlas Copco 2014
THE YEAR IN REVIEW
0
25
50
75
100
125
150
175
200
225
2014
2013
2012
2011
2010
SEK
Highest–lowest share price, A share
General index (OMXS)
Industrials index (OMXSI)
Total average daily volume traded A-shares, thousands
0
5 000
10 000
THE ATLAS COPCO SHARE
Share price development and returns
During 2014, the price of the A share increased 22% to SEK 218.40 
(178.30) and the price of the B share increased 23% to SEK 200.90 
(163.20). The annual total return on the Atlas Copco A share, equal to 
dividend, redemption and the appreciation of the share price, was on 
average 22.0% for the past ten years and 19.6% for the past five years. 
The corresponding total return for Nasdaq Stockholm was 11.6% 
(2005–2014) and 13.6% (2010–2014), respectively. 
Trading and market capitalization 
The Atlas Copco shares are listed on Nasdaq Stockholm, which rep-
resented 37% of the total trading of the A share (47% of the B share) 
in 2014. Other markets, so called Multilateral Trading Facilities 
(MTF), e.g. BATS Chi-X, Turquoise and Burgundy accounted for  
some 20% (15), and the remaining 43% (38) were traded outside  
public markets, for example through over-the-counter trading. 
The market capitalization at year end 2014 was MSEK 261 719 
(213 348 at year end 2013) and the company represented 4.9 % (4.4) 
of the total market value of Nasdaq Stockholm. Atlas Copco was  
the fifth (second) most traded name in 2014 by total turnover. 
A program for American Depositary Receipts (ADRs) was  
established in the United States in 1990. One ADR corresponds  
to one share. The depositary bank is Citibank N.A. At year end  
2014, there were 8 648 609 ADRs outstanding, of which 7 404 391 
represented A shares and 1 244 218 B shares.
SHARE INFORMATION
A SHARE
B SHARE 
Nasdaq Stockholm 
ATCO A 
ATCO B
ISIN code* 
SE0000101032 
SE0000122467
ADR
 ATLKY.OTC 
ATLCY.OTC
Total number of shares 
839 394 096
390 219 008
% of votes 
95.6
4.4
% of capital 
68.3
31.7
Whereof shares held by Atlas Copco
11 111 707
501 379
% of votes 
1.3
0.1
% of capital 
0.9
0.0
* Subject to change during 2015 following redemption. 
Personnel stock option program and repurchase of own shares
The Board of Directors will propose to the Annual General Meeting 
2015 a similar performance-based long-term incentive program as  
in previous years. The intention is to cover the plan through the 
repurchase of the company’s own shares. The company’s holding  
of own shares on December 31, 2014 appears in the table below.
Dividend and mandatory redemption of shares
The Board of Directors proposes to the Annual General Meeting
that a dividend of SEK 6.00 (5.50) per share be paid for the 2014  
fiscal year. The dividend is proposed to be paid in two equal install-
ments. If approved, the annual dividend growth for the five-year 
period 2010–2014 will equal 15%. During the same period, the  
dividend has averaged 52% of basic earnings per share.
The Board also proposes a mandatory share redemption proce-
dure, whereby every share is split into one ordinary share and one 
redemption share. The redemption share is then automatically 
redeemed at SEK 6.00 per share. The dividend and the redemption 
are subject to approval at the Annual General Meeting 2015. See 
more information on page 19.
SHARE PRICE
MORE INFORMATION
➔ More data per share can be found on page 133 in the  
five-year summary. 
➔ For more information on distribution of shares,  
option programs and repurchase of own shares, see  
notes 5, 20 and 23. 
➔ Detailed information on the share and debt can be  
found on www.atlascopco.com/ir.
INVESTOR RELATIONS CONTACT
➔ www.atlascopco.com/ir
➔ E-mail: ir@se.atlascopco.com / phone: +46 8 743 8291

Atlas Copco 2014
55
THE YEAR IN REVIEW 
EARNINGS AND  
DISTRIBUTION PER SHARE
0
3
6
9
12
2014
2013
2012
2011
2010
SEK
Earnings, SEK
Redemption of shares, SEK
Dividend, SEK (for 2014 as 
proposed by the Board) 
SHARE ISSUES 2005–2014 1)
Change of share capital, MSEK
Amount distributed, MSEK
2005
Split
4:1
 
Share redemption 
209 602 184 shares at SEK 20
–262.0
–4 192.0
2007
Split
3:1
Share redemption 2)
628 806 552 shares at SEK 40
–262.0
–24 415.7
Bonus issue
No new shares issued
262.0
Cancellation of shares held  by Atlas Copco
28 000 000 shares
–17.5
 
Bonus issue
No new shares issued
17.5
 
2011
Split
2:1
Share redemption 3)
1 229 613 104 shares at SEK 5
–393.0
–6 067.0
Bonus issue
No new shares issued
393.0
 
1) For information before 2005 please visit www.atlascopco.com/ir    2) 610 392 352 shares net of shares held by Atlas Copco.   3) 1 213 493 751 shares net of shares held by Atlas Copco.
ATLAS COPCO TOP RANKED  
IN DOW JONES  
SUSTAINABILITY INDEX
In 2014, Atlas Copco was again  
listed as one of the top companies  
in its industry in the prestigious  
Dow Jones Sustainability Index  
for 2014/2015. 
The index lists the world’s  
leading sustainability-driven 
companies. The index helps identify 
and measure the companies that 
represent an attractive investment 
opportunity by demonstrating  
an ability to manage sustainability 
issues.
IMPORTANT DATES
2015 April 28
Annual General Meeting
 
First quarter results
April 29*
Shares trade excl. right to dividend of SEK 3.00
May 5*
First dividend payment date (preliminary)
May 15*
Shares trade excl. right to redemption share SEK 6.00
June 15*
Redemption payment date (preliminary) 
July 16
Second quarter results
October 20 
Third quarter results
October 29*
Shares trade excl. right to dividend of SEK 3.00
November 3* Second dividend payment date (preliminary) 
November 17 Capital Markets Day
2016 January 28
Preliminary 2015 report
 
Fourth quarter results 2015
*  Board of Directors proposal to the Annual General Meeting. The record date is the 
first trading day after shares trade excl. right to dividend/redemption share. 
SHAREHOLDERS BY COUNTRY  
DECEMBER 31, 2014 – PERCENT OF CAPITAL
Other, 12%
Sweden, 52%
The United 
Kingdom, 14%
The United 
States, 22%
TEN LARGEST SHAREHOLDERS* 
December 31, 2014
% of votes 
% of capital
Investor AB 
22.3
16.8
Swedbank Robur fonder 
3.8
4.9
Alecta Pensionsförsäkring 
3.4
4.0
SEB Investment Management 
1.4
1.1
Fjärde AP-fonden 
1.0
1.2
AMF
0.8
2.5
Folksam 
0.8
0.9
Första AP-fonden 
0.8
0.9
SPP fonder AB
0.6
0.6
Nordea Investment Funds
0.5
0.6
Others
64.6
66.6
Total
100.0
100.0
– of which shares held by Atlas Copco
1.3
0.9
* 	Shareholders registered directly or as a group with Euroclear Sweden,  
the Swedish Central Securities Depository.
OWNERSHIP STRUCTURE, DECEMBER 31, 2014
Number of shares
% of shareholders
% of capital
1–500
                       59.6                             0.6    
501–2 000
                       26.0                             1.6    
2 001–10 000
                       11.1                             2.7    
10 001–50 000
                         2.2                             2.7    
50 001–100 000
                         0.3                             1.3    
>100 000
                         0.8                           91.1    
 Total
 100.0    
 100.0    
OWNERSHIP CATEGORY
% of capital
Shareholders domiciled abroad (legal entities and individuals) 
47.8
Financial companies
38.9
Swedish individuals 
5.5
Other Swedish legal entities 
4.1
Social insurance funds
2.0
Trade organizations 
1.4
Government 
0.3
Total 
100.0
Ownership structure
At year end 2014, Atlas Copco had 70 914 shareholders (72 738 at year end 2013). The ten largest shareholders registered directly or as  
a group with Euroclear Sweden, the Swedish Central Securities Depository, by voting rights, accounted for 35% (35) of the voting rights and 
33% (34) of the number of shares. Swedish investors held 52% (53) of the shares and represented 50% (51) of the voting rights.

56
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
In the corporate governance report Atlas Copco 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 challenge is to find the right 
balance between risk and control in a decentralized management model. 
The goal is sustainability in pro­ductivity and profitability as well as in  
governance. 
CORPORATE GOVERNANCE 
THE BOARD’S WORK DURING 2014 IN SUMMARY
Q1
Q2
Q3
Q4
January
February
March
April
May
June
July
August
September
October
November
December
Board of Directors: 
Preliminary full-year  
2013 results, review of 
Industrial Technique  
and the annual audit 
Board of Directors: 
Meeting per  
capsulam
Board of Directors: 
– 	First-quarter results meeting and 
review of Construction Technique 
– 	Annual General Meeting  
and Statutory meeting 
Board of Directors: 
Second-quarter  
results meeting 
Board of Directors: 
Third-quarter results meeting  
and review of Mining and Rock 
Excavation Technique 
Nomination Committee  
Nomination committee meeting
Board of Directors: 
Board meeting in the United King-
dom, visit to Edwards, and review  
of Compressor Technique
THE FOLLOWING INFORMATION IS AVAILABLE  
AT WWW.ATLASCOPCO.COM
➔ Atlas Copco’s Articles of Association 
➔ Business Code of Practice 
➔ Corporate governance reports since 2004  
(as a part of the annual report)
➔ Information on Atlas Copco’s Annual General Meeting
➔ Proxy form for the Annual General Meeting 
Atlas Copco is incorporated under the laws of Sweden with a public 
listing at Nasdaq Stockholm AB (Nasdaq Stockholm). Atlas Copco 
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 Articles of Associa-
tion and other relevant rules. 
Atlas Copco does not report any deviations from the Swedish 
Corporate Governance Code for the financial year 2014. 
The corporate governance report has been examined by the   
auditors, see page 123.
Atlas Copco Honorary Chair Peter 
Wallenberg, who was active with the 
Group for more than 61 years, passed 
away at the age of 88 years in January 
2015. He played an important role in  
the Swedish and international business 
communities.
Peter Wallenberg, born 1926, began his 
long and productive partnership with 
Atlas Copco in 1953 when he joined as 
an employee at a service workshop in 
Nacka, Sweden. 
Eager to learn about all aspects  
of the company and not afraid to  
take on tough physical tasks, Peter 
Wallenberg worked for a period in the 
Kärrgruvan mine in Sweden where  
he learned to operate rock drilling 
machines. In 1956 he moved to the 
United States as a compressor sales 
engineer. Though he was a lawyer at 
this time, he learned the technical  
matters including how to service the 
equipment.
In 1959 he left for Atlas Copco in 
Africa, where he served as Managing 
Director for the Federation of Rhodesia 
and Nyasaland (Zimbabwe, Zambia 
and Malawi) and later also for the 
Congo. He served in the United  
Kingdom before returning to Sweden 
as Managing Director for Mining and 
Construction Technique in 1968. In 
1974 he became Chair of the Board  
of Directors, a position he held for  
22 years. From 1996 he served as  
Honorary Chairman. 
“ Peter Wallenberg will be remembered 
as the most committed Atlas Copco  
promoter and supporter ever,” said  
Ronnie Leten, President and CEO  
for the Atlas Copco Group. “He was  
a true inspiration for me personally  
and for countless of former colleagues 
and friends in the Group.” 
When Peter Wallenberg stepped down 
as Chair in 1996, Atlas Copco estab-
lished an award in his name. The Peter 
Wallenberg Marketing and Sales 
Award recognizes the most innovative 
and successfully implemented method  
in the field of sales and marketing. The 
award is presented every year at Atlas 
Copco’s Annual General Meeting in  
Stockholm, Sweden.
Peter Wallenberg
1926–2015
IN MEMORIAM: PETER WALLENBERG 
Nomination Committee 
Nomination committee meeting
Board of Directors 
CEO remuneration tel. meeting

Atlas Copco 2014
57
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Nomination Committee
Internal Audit 
and Assurance
 External Auditor
Business areas and divisions
Remuneration Committee
6.  
3.  
1.   Shareholders
4.   Board of Directors
2.   Annual General Meeting 
Audit Committee
5.  
7.  
8.  
9.   Group Management
1.
SHAREHOLDERS
At the end 2014, Atlas Copco had 70 914 
shareholders (72 738 at year end 2013). The 
ten largest shareholders registered directly or 
as a group with Euroclear Sweden, the Swed-
ish Central Securities Depository, by voting 
rights, accounted for 35% (35) of the voting 
rights and 33% (34) of the number of shares. 
Swedish investors held 52% (53) of the shares 
and represented 50% (51) of the voting rights.
The largest shareholder is Investor AB, 
holding 17% of capital and 22% of votes. 
More information on Atlas Copco’s share-
holders can be found on pages 54–55. 
2.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) is 
Atlas Copco’s supreme decision-making 
body in which all shareholders are entitled to 
take part. The shareholders may exercise 
their voting rights in a number of important 
issues, such as the election of Board mem-
bers and auditors, approval of financial 
statements, discharge of liability for the 
President and CEO and the Board, and the 
adoption of the proposed distribution of 
profits. All shareholders registered in the 
shareholders’ register who have given due 
notification to the company of their inten-
tion to attend, may join the meeting and vote 
for their total shareholdings. Atlas Copco 
encourages all shareholders to attend the 
AGM and shareholders who cannot partici-
pate personally may be represented by proxy 
holders. A shareholder or a proxy holder 
may be accompanied by two assistants and a 
proxy form can be found prior to the AGM 
at www.atlascopco.com/agm.
The AGM 2014 was held on April 29, 
2014 in Stockholm, Sweden and 59% of the 
total number of votes in the company and 
56% of the shares were represented. 
Decisions at the AGM 2014 included: 
■	adoption of the income statements and  
balance sheets of the company and the Group 
for 2013
■	discharge of liability of the company’s affairs 
during the 2013 financial year for the President 
and CEO, and the Board of Directors 
■	adoption of the Board’s proposal for profit dis-
tribution with a dividend of SEK 5.50 per share
■	that the number of directors elected by the  
annual general meeting for a term ending at  
the next annual general meeting would be  
nine directors and no alternates 
■	a resolution of the Board of Directors’ fee
■	approval of the guidelines for remuneration  
to management
■	approval of the reported scope and principals 
for a performance based employee stock  
option plan for 2014
■	election of Jan Berntsson as principal auditor 
and Deloitte AB as auditing company until  
the AGM 2015.
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 the following 
addresses: 
 
Atlas Copco AB, Att: General Counsel 
SE-105 23 Stockholm, Sweden, 
nominations@atlascopco.com or
board@atlascopco.com. 
Proposals have to be received by the  
Board of Directors and the Nomination 
Committee respectively, no later than seven 
weeks prior to the AGM to be included in 
the notice to the AGM and the agenda. 
ANNUAL GENERAL  
MEETING 2015
 
The Annual General Meeting 2015 will  
be held on April 28, 2015 at 4 p.m. in  
Aula Magna, Stockholm University,  
Frescativägen 6, Stockholm, Sweden. 
ANNUAL GENERAL MEETING  
ATTENDANCE
0
20
40
60
80
2014
2013
2012
2011
2010
0
100
200
300
400
%
Votes, %
Number
Shareholders and proxy holders, 
number
GOVERNANCE STRUCTURE

58
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
3.
NOMINATION COMMITTEE
The Nomination Committee has the respon-
sibility to ensure that the Board of Directors 
of Atlas Copco AB represents the knowl-
edge, experience and diversity most suitable 
to achieve a sustainable and profitable devel-
opment of the Atlas Copco Group. 
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 for 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 pro-
posal for remuneration for Board committee 
work. Finally the Nomination Committee 
proposes an audit company including remu-
neration for the audit. 
The proposals and the Nomination  
Committee’s statement will be published at 
the latest with the notice to the AGM 2015.
In compliance with the Swedish Corpo-
rate Governance Code and the adopted pro-
cedures by the AGM 2012, representatives 
of the four largest directly registered or  
ownership grouped shareholders, listed in 
the shareholders’ register as of September 
30, respective year, together with the Chair 
of the Board shall form the Nomination 
Committee. 
The members of the Nomination Com-
mittee were announced on October 20, 2014 
and they represented approximately 30% of 
all votes in the company. The Nomination 
Committee had two minuted meetings dur-
ing the year. The members of the Nomina-
tion Committee receive no compensation for 
their work in the Nomination Committee.
Nomination Committee members  
for the AGM 2015
Petra Hedengran, Investor AB, Chair 
Jan Andersson, Swedbank Robur Fonder 
Ramsay Brufer, Alecta 
Hans Ek, SEB Fonder 
Hans Stråberg, Atlas Copco AB
GOVERNANCE STRUCTURE, CONTINUED 
4.
BOARD OF DIRECTORS
The Board of Directors is overall responsi-
ble for the organization, administration and 
management of Atlas Copco in the best 
interest of the Company and of the share-
holders. The Board is responsible for follow-
ing applicable rules and implementing effi-
cient control systems in the decentralized 
organization. An efficient control system 
offers the correct balance between risk and 
control. The long-term growth incentive is 
regularly evaluated by the Board based on 
the Group’s financial situation and financial, 
legal, social and environmental risk. The 
mission is to achieve a sustainable and  
profitable development of the Group. 
Board of Directors’ members
The Board of Directors consists of nine 
elected members, including the President 
and CEO. The Board also has two union 
members, each with one personal deputy. 
Atlas Copco fulfilled the 2014 requirements 
of Nasdaq Stockholm and the rules of the 
Swedish Corporate Governance Code 
regarding independency of board members. 
All board members have participated in 
training sessions arranged by Nasdaq  
Stockholm. 
The Board of Directors’ work
The Board continuously addresses the stra-
tegic direction, the financial performance, 
and the methods to maintain sustainable 
profitability of the Group. Further, the 
Board regularly ensures that efficient control 
systems are in place. The Board also follows 
up on the compliance of the Business Code 
of Practice as well as the whistleblowing  
system. Besides the general distribution of 
responsibilities that apply in accordance 
with the Swedish Companies Act, the Board 
and its committees (Audit Committee, 
Remuneration Committee and others)  
annually review and adopt “The Rules of 
Procedure” and “The Written Instructions”, 
which are documents that govern the 
Boards’ work and distribution of tasks 
between the Board and the President as well 
as the Company’s reporting processes.
The Board had eight meetings in 2014: 
five at Atlas Copco AB in Nacka, Sweden, 
one per capsulam, one per phone and one in 
England, including a visit to Edwards. The 
attendance of Board members is presented 
on pages 60–61. No dissenting opinions in 
relation to a decision have been reported in 
the Minutes during the year. The Board  
continuously evaluates the performance of 
the CEO, Ronnie Leten. For the Annual 
Audit, the company’s principal auditor,  
Jan Berntsson, Deloitte, reported his obser-
vations and 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 com-
mittees (Audit Committee, Remuneration 
Committee and others) was conducted by 
the Chair of the Board, Hans Stråberg. He 
evaluated the Boards’ working procedures, 
competence and composition, including the 
background, experience, and diversity of the 
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 2014 
AGM decided to adopt the Nomination 
Committee’s proposal for remuneration to 
the Chair and other Board members not 
employed by the company, and the proposed 
remuneration for committee work. See  
also note 5.
■	The Chair received SEK 1 900 000
■	Each of the other Board members not  
employed by the company SEK 570 000
■	An amount of SEK 225 000 was granted to  
the Chair of the Audit Committee and SEK 
150 000 to each of the other members of  
this committee
■	An amount of SEK 60 000 was granted  
to each one of the members of the  
Remuneration Committee 
■	An amount of SEK 60 000 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.
“ The Board continuously 
addresses the strategic 
direction, the financial 
performance, and the 
methods to maintain 
sustainable profitability  
of the Group.”

Atlas Copco 2014
59
THE YEAR IN REVIEW – ADMINISTRATION REPORT
5.
AUDIT COMMITTEE 
The Audit Committee’s primary task is to 
support the Board of Directors in fulfilling 
its responsibilities in the areas of audit and 
internal control, accounting, financial 
reporting and risk management as well as to 
supervise the financial structure and opera-
tions of the Group and approve financial 
guarantees, delegated by the Board. The 
Audit Committee work further includes 
reviewing internal audit procedures. The 
work of the Audit Committee is directed by 
the Audit Committee Charter, which is 
reviewed and approved annually by the 
Board. The Chair of the committee has the 
accounting competence required by the 
Swedish Companies Act and two of the 
members are independent from the company 
and its main shareholder.
During the year, the committee con-
vened five times. All members were present 
at these meetings. In the beginning of the 
year the committee finalized the proposal for 
audit company Deloitte, for the period until 
the AGM 2017, subject to approval at the 
AGM each year. It was presented to the 
Nomination Committee and subsequently 
the proposal was approved by the AGM.  
All meetings of the Audit Committee have 
been reported to the Board of Directors  
and the corresponding Minutes have been 
distributed. 
Audit Committee 2014–2015
Ulla Litzén, Chair  
Hans Stråberg 
Staffan Bohman
Johan Forssell
6.
REMUNERATION COMMITTEE
The Remuneration Committee’s primary 
task is to propose to the Board the remuner-
ation to the President and CEO and a long-
term incentive plan for key employees. The 
goal with a long-term incentive plan is to 
align the interests of key personnel with 
those of the shareholders. The Remunera-
tion Policy for Group Management aims to 
establish principles for a fair and consistent 
remuneration with respect to compensation, 
benefits, and termination. The base salary is 
determined by position and performance 
and the variable compensation is for the 
achievement of individual goals. The Remu-
neration Policy is reviewed annually and the 
AGM 2014 approved the guidelines for 
remuneration. See also note 5. 
The Remuneration Committee had two 
meetings in 2014. All members were present. 
During the year, the Remuneration Commit-
tee also supported the President and CEO in 
determining remuneration to the other mem-
bers of Group Management. The corre-
sponding Minutes have been distributed to 
the Board. 
Remuneration Committee 2014–2015
Hans Stråberg, Chair  
Peter Wallenberg Jr 
Anders Ullberg
7.
EXTERNAL AUDITOR
The task of the external auditor is to exam-
ine Atlas Copco’s annual accounts and 
accounting practices, as well as to review  
the Board and the CEO’s management of 
the Company. At the AGM 2014 the audit 
firm Deloitte AB, Sweden, was elected exter-
nal auditor until the AGM 2015 in compli-
ance with a proposal from the Nomination 
Committee. The principal auditor is Jan  
Berntsson, Authorized Public Accountant  
at Deloitte AB.
At the AGM 2014, Jan Berntsson 
referred to the auditor’s report for the Com-
pany and the Group in the annual report and 
explained the process applied when perform-
ing the audit. He also recommended adop-
tion 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
The Board of Directors is responsible for 
that Atlas Copco has adequate internal con-
trol systems in place for financial reporting. 
Read more on pages 64–65.

60
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
BOARD OF 
DIRECTORS
Name
Born
Function
Education
Hans Stråberg
1957
Chair since 2014
M.Sc. in Mechanical  
Engineering, Chalmers  
University of Technology, 
Gothenburg
Ronnie Leten
1956
Board member
President and CEO
M.Sc. in Applied  
Economics, University  
of Hasselt, Belgium
Ulla Litzén
1956
Board member
M.Sc. in Economics and  
Business Administration, 
Stockholm School of  
Economics, and MBA,  
Massachusetts Institute of 
Technology, the U.S.
Anders Ullberg
1946
Board member
M.Sc. in Economics and 
Business Administration, 
Stockholm School of  
Economics
Staffan Bohman
1949
Board member
M.Sc. in Economics and  
Business Administration, 
Stockholm School of  
Economics and Stanford  
Executive Program, the U.S.
Nationality / Elected
Swedish / 2013
Belgian / 2009
Swedish / 1999
Swedish / 2003
Swedish / 2003
Board  
memberships
Member of the Board of
Investor AB, Stora Enso
Oyj, Finland, N Holding AB, 
Mellby Gård AB, Hedson AB 
and Chair of Roxtec AB,
CTEK AB, Nikkarit Holding AB 
and Orchid Orthopedics Inc.
Chair of Electrolux AB.
Board member of SKF AB, 
Boliden AB, Alfa Laval AB, 
NCC AB and  
Husqvarna AB.
Chair of BE Group AB,  
Boliden AB, Natur & Kultur, 
and Studsvik AB. Board 
member of Beijer Alma, 
Valedo Partners, and  
Åkers AB. Chair of the 
Swedish Financial  
Reporting Board.
Chair of Höganäs AB and 
Cibes Lift Group AB, Vice 
Chair of Rezidor Hotel Group 
AB, the Swedish Corporate 
Governance Board, and the 
Board of trustees of SNS, 
Board member in Ratos AB 
and Boliden AB.
Principal work  
experience and other  
information
Chief Executive Officer and 
President for Electrolux AB. 
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 
Atlas Copco Compressor 
Technique. Division president 
for the divisions Airtec and  
Industrial Air as well as  
several management posi-
tions within IT, logistics,  
business development  
and manufac­turing in the 
Compressor Technique  
business area in Belgium.
President of W Capital  
Management AB (wholly 
owned by the Wallenberg 
Foundations) and Managing 
Director and member 
of the Management 
Group, Investor AB.
Vice President Corporate 
Control Swedyards  
(Celsius Group), Executive 
Vice President and CFO, 
SSAB,Swedish Steel and 
President and CEO of 
SSAB Swedish Steel.
CEO of Sapa AB,  
Gränges AB and  
DeLaval AB.
Total fees 2014, KSEK 1)
1 990
–
1 110
686
933
Board meeting  
attendance
8 of 8 
7 of 8 2)
8 of 8 
8 of 8
7 of 8
Remuneration  
Committee
attendance
1 of 1 as of AGM 2014
Chair
–
–
2 of 2
–
Audit Committee
attendance
5 of 5 
–
5 of 5 
Chair
–
5 of 5
Holdings in  
Atlas Copco AB 3)
7 720 synthetic shares
19 166 class A shares
24 000 class B shares
208 029 synthetic shares/
employee stock options
75 800 class A shares
3 000 class B shares
2 302 synthetic shares
14 000 class A shares
10 000 class B shares
2 302 synthetic shares
10 000 class A shares
30 000 class B shares
4 180 synthetic shares
Independence to  
Atlas Copco and its 
management
Yes
No 4)
Yes
Yes
Yes
Independence to major 
shareholders
No 6)
Yes
Yes
Yes
Yes 
Annual Meeting  
attendance
Yes 
Yes
Yes
Yes
Yes
Board  
members 
appointed  
by the unions
Bengt Lindgren
Board member
Born 1957
Chair of IF Metall, 
Atlas Copco
Elected 1990
Board meeting  
attendance 7 of 8
Mikael Bergstedt
Board member 
Born 1960
Chair of PTK, 
Atlas Copco 
Elected 2004
Board meeting  
attendance 8 of 8

Atlas Copco 2014
61
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Margareth Øvrum  
1958
Board member
M.Sc. in Technical  
Physics, Norwegian  
University of Science  
and Technology, 
Trondheim, Norway
Johan Forssell
1971
Board member
M.Sc. in Economics and 
Business Administration, 
Stockholm School of  
Economics
Gunilla Nordström
1959
Board member
M.Sc. in Electronics,  
Industrial Marketing  
Management, Linköping 
University
Peter Wallenberg Jr
1959
Board member
BSBA Hotel Administration, 
University of Denver,  
the U.S. and International 
Bachaloria, American School, 
Leysin, Switzerland
Norwegian / 2008
Swedish / 2008
Swedish / 2010
Swedish / 2012
Board member of  
Saab AB.
Board member of  
Wärtsilä Oyj, Finland.
Chair of Foundation Adminis-
tration Management Sweden 
AB, The Grand Group, The 
Royal Swedish Automobile 
Club. Vice Chair of the  
Knut and Alice Wallenberg 
Foundation. Board member 
of Aleris Holding AB, Founda-
tion Asset Management  
Sweden AB, Investor AB and 
Scania AB. 
Executive Vice President 
for Statoil ASA.* Several  
leading positions within  
technology, projects,  
production, maintenance, 
health/safety/environment, 
and procurement in Statoil. 
All positions in Norway.
Managing Director,  
Head of Core Investments 
and member of the manage-
ment group of Investor AB.*
Investor AB’s Board of  
Directors has appointed  
Johan Forssell as new  
President and CEO as of 
May 12, 2015.
President and CEO of 
Electrolux Major 
Appliances Asia/Pacific, 
based in Singapore, and 
Executive Vice President  
of Electrolux AB.*  
Senior management  
positions with 
telefonaktiebolaget 
LM Ericsson and Sony 
Ericsson in Europe, 
Latin America and Asia.
President and CEO of  
The Grand Hotel Holdings,
General Manager The
Grand Hotel, President
Hotel Division Stockholm-
Saltsjön.
568
712
568
628
7 of 8
8 of 8
8 of 8
8 of 8 
–
–
–
2 of 2
–
5 of 5
– 
– 
9 054 synthetic shares
5 000 class B shares
9 054 synthetic shares
7 176 synthetic shares
5 030 synthetic shares
Yes
Yes
No 5)
Yes
Yes 
No 7)
Yes
No 6)
Yes
Yes
Yes
Yes 
Ulf Ström
Deputy
Born 1961
Chair of IF Metall,  
Atlas Copco Rock Drills AB,  
Örebro
Elected 2008
Board meeting  
attendance 8 of 8
Kristina Kanestad
Deputy
Born 1966 
Chair of Unionen,  
Atlas Copco Rock Drills AB,  
Örebro
Elected 2007 
Board meeting  
attendance 8 of 8
REFERENCES:
All educational institutions and companies are 
based in Sweden, unless otherwise indicated.
1) 	See more information on the calculation of  
fees in note 5. 
2) 	One meeting only covered the remuneration to 
the President and CEO. He did not participate 
in this board meeting.
3) 	Holdings as per end of 2014, including those  
of close relatives or legal entities and grant  
for 2014. 
4)	President and CEO of Atlas Copco. 
5)	Member of Group Management in a company 
where the President and CEO is the Chair 
(Electrolux AB).
6)	Board member in a company which is a larger 
owner (Investor AB). 
7)	Employed by a company which is a larger 
owner (Investor AB).
*	Current position.

62
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
GROUP  
MANAGE-
MENT
Name
Ronnie Leten
Nico Delvaux
Mats Rahmström
Johan Halling
Position
President and CEO
Senior Executive Vice  
President for Atlas Copco AB 
and Business Area President 
Compressor Technique
Senior Executive Vice  
President for Atlas Copco AB 
and Business Area President 
Industrial Technique
Senior Executive Vice 
President for Atlas Copco AB 
and Business Area President 
Mining and Rock Excavation 
Technique
In current position since
2009
2014
2008
2013
Nationality / Employed
Belgian / 1997
Belgian / 1991
Swedish / 1988
Swedish / 1998
Born
1956
1966
1965
1952
Education
M.Sc. in Applied  
Economics, University  
of Hasselt, Belgium
M.Sc. in Electro­mechanics 
from the University of Brus-
sels and an MBA from the 
Handels­hogeschool in 
Antwerp, Belgium
MBA from the Henley  
Management College,  
the United Kingdom
M.Sc. in Mechanical  
Engineering from the  
University of Lund
Principal work  
experience and other  
information
Ronnie Leten was first  
employed by Atlas Copco 
in 1985. Since then he  
has been Business Area 
President for Atlas Copco 
Compressor Technique 
and President for the divi-
sions Airtec and Industrial 
Air. He has also held man-
agement positions within 
IT, logistics, business de-
velopment and manufac­
turing in the Compressor 
Technique business area. 
All positions in Belgium.
Nico Delvaux started his 
career with Atlas Copco in 
1991 and has had positions in 
sales, marketing, service, 
acquisition-integration 
management and general 
management, in markets 
including Benelux, Italy, 
Canada and the United 
States. Before his current 
position, he was Business 
Area President for 
Construction Technique. 
Mats Rahmström has held 
positions in sales, service, 
marketing and general 
management within the 
Industrial Technique business 
area. Between 1998 and 
2006 he held the position  
as General Manager for 
customer centers in Sweden, 
Canada and the United 
Kingdom. Between 2006  
and 2008 he was President of 
the Atlas Copco Tools and 
Assembly Systems General 
Industry division within 
Industrial Technique. 
Johan Halling joined Atlas 
Copco in 1998 as President 
of one of the electric tool  
divisions within Industrial 
Technique that Atlas Copco 
owned at the time. Between 
2002 and 2013 he was Presi-
dent of Atlas Copco’s Rock 
Drilling Tools division. 
External directorships 
Chair of Electrolux AB.
Board member of  
Permobil Holding AB. 
Chair of Eson Pac Group AB.
Holdings in  
Atlas Copco AB 1)
19 166 class A shares
24 000 class B shares
208 029 synthetic shares/
employee stock options
5 811 class A shares
66 704 synthetic shares/
employee stock options
6 780 class A shares
91 057 synthetic shares/
employee stock options
7 955 class A shares  
85 456 synthetic shares/
employee stock options
1) 	Holdings as per December 31, 2014, including those held by related natural or legal persons. See note 23 for more information on the option programs and matching shares.  
The President and CEO, Ronnie Leten, has no major shareholdings or part ownership in enterprises with which Atlas Copco has significant business relations.
All educational institutions and companies are based in Sweden, unless otherwise indicated.
9.
GROUP MANAGEMENT
Besides the President and CEO, the Group 
Management consists of four business area 
executives and executives responsible for  
the main Group functions; Corporate  
Communication and Governmental Affairs, 
Organizational Development and  
Human Resources, Controlling and Finance, 
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 Remuneration Policy is reviewed and 
presented to the AGM by the Board of 
Directors for approval every year. In 2014, 
the AGM decided to adopt the Board’s  
proposal. 
The remuneration covers an annual base  
salary, variable compensation, possible long-
term incentive (personnel options), pension 
premium and other benefits. The variable 
compensation is limited to a maximum per-
centage of the base salary. No fees are paid 
for Board memberships in Group companies 
or for other duties performed.

Atlas Copco 2014
63
THE YEAR IN REVIEW – ADMINISTRATION REPORT
Andrew Walker
Annika Berglund
Jeanette Livijn
Hans Ola Meyer
Håkan Osvald
Senior Executive Vice 
President for Atlas Copco AB 
and Business Area President  
Construction Technique
Senior Vice President  
Corporate Communications  
and Governmental Affairs
Senior Vice President  
Organizational Development  
and Human Resources
Senior Vice President  
Controlling and Finance
Senior Vice President  
General Counsel
2014
1997
2007
1999
2012
Irish / 1986
Swedish / 1979
Swedish / 1987
Swedish / 1991
Swedish / 1985
1961
1954
1963
1955
1954
M. Sc. in Industrial Engineering 
and an MBA from University 
College Dublin, Ireland
M.Sc. in Economics and  
Business Administration  
from Stockholm School of 
Economics and an MBA from 
the University of Antwerp, 
Belgium
M.Sc. in Business
Administration from Växjö  
högskola
M.Sc. in Economics and  
Business Administration  
from Stockholm School of 
Economics
Master of Law from  
Uppsala University
Andrew Walker started his 
career with Atlas Copco in 
Ireland 1986 and has since  
then had several different 
management positions in 
markets including United 
Kingdom, Ireland, Belgium 
and the United States. Before 
his current position, Andrew 
Walker was President of the 
Service division within 
Compressor Technique. 
Annika Berglund began her  
career in marketing analysis  
and market research with  
Atlas Copco in 1979. Since 
then, she has held a number 
of positions in the Group  
related to marketing, sales, 
and business controlling in 
Europe. Prior to her current 
position, she was Marketing 
Manager for the electronic 
company Atlas Copco  
Controls (Danaher Motion).
Jeanette Livijn started to 
work for Atlas Copco in the 
field of financial and business 
controlling in 1987 and held 
various positions in this  
function. Since 1997 she has 
held managerial positions  
within human resource  
management. Before she 
took up this present position 
she was Vice President  
Human Resources for the  
Industrial Technique  
business area.
Hans Ola Meyer was em-
ployed in 1978 to work with 
Group accounting and con-
trolling. Later he moved to 
Ecuador as Financial Manag-
er. Between 1984 and 1991, 
he held various positions  
at the broker Penning-
marknadsmäklarna. He re-
turned to Atlas Copco in 1991 
as Financial Manager in Spain 
and in 1993 he became  
Senior Vice President,  
Finance, for Atlas Copco AB 
and a member of Group  
Management.
Håkan Osvald joined Atlas 
Copco in 1985 as Legal 
Counsel. From 1989 he was 
General Counsel for Atlas 
Copco North America Inc. 
and Chicago Pneumatic Tool 
Company, the United States. 
In 1991 he was appointed 
Vice President Deputy 
General Counsel Atlas Copco 
Group, with a special 
responsibility for acquisitions. 
Prior to his current position, 
he was General Counsel 
Operations. Since 2012 he is 
Secretary of the Board of 
Directors for Atlas Copco AB.
Member of The Swedish  
Financial Reporting Board  
and member of the Board  
of Trustees for The Bank of  
Sweden Tercentenary.
Chair of ICC Sweden,  
reference group  
Competition.
3 998 class A shares,  
37 033 synthetic shares/
employee stock options.
10 467 class A shares
7 900 class B shares
83 496 synthetic shares/
employee stock options
3 414 class A shares
29 369 synthetic shares/
employee stock options
7 286 class A shares
18 021 class B shares
62 311 synthetic shares/
employee stock options
3 709 class A shares
2 600 class B shares
40 669 synthetic shares/
employee stock options

64
Atlas Copco 2014
THE YEAR IN REVIEW – ADMINISTRATION REPORT
PROKURA
Prokura is the delegation of the authority to act both with respect to a third party and 
internally. It defines how responsibility is allocated to positions and, reflecting this, to 
individuals. 
FREQUENCY: When a person is recruited to a new position
BUSINESS BOARD
The internal board structure, organized according to operational responsibilities (i.e. 
parallel to the legal company board structure), and Company Review Meetings 
between local management and responsible division management are essential tools 
to follow up the adherence to internal policies, guidelines, instructions and codes as 
well as the efficiency in the control activities over financial reporting. 
FREQUENCY: 3–4 times per year
INTERNAL CONTROL OVER 
FINANCIAL REPORTING
The internal control process is based on a 
control environment that creates structure 
for the other four components of the process 
– risk assessment, control activities, informa-
tion and communication as well as monitor-
ing. The starting point for the process is the 
regulatory framework for internal control 
issued by the Committee of Sponsoring 
REPORTING
Monthly operative reports are prepared to measure and analyze profitability per 
product category, company, business line, division, and business area. Each division 
consolidates its units and reports adjustments and eliminations. Quarterly, these 
reports are completed with additional information and specifications. The reports 
constitute the basis for the Group’s quarterly and annual consolidated reports. 
Reporting is also prepared to measure progress in fields related to environmental and 
social performance. 
The Group uses a common system for consolidation of the reports, which also 
provides certain system-based validation reports. It includes a series of standardized 
scorecards used to analyze and follow up key indicators and trends in relation to the 
set targets.
FREQUENCY: Monthly, quarterly, annually
BUSINESS CONTROL
Each unit has a business controller responsible for ensuring adequate internal control 
processes over financial reporting, implementing Group control processes. The 
controller is also responsible for ensuring the application of The Way We Do Things and 
that reporting is correct, complete, and delivered on time. There are also controllers at 
the Division, Business area, and Group levels with corresponding responsibilities for 
these aggregated levels.
FREQUENCY: Continuously
PROCESSES AND TOOLS
This section includes a description of Atlas Copco’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. 
Organizations of the Treadway Commission 
(COSO), www.coso.org.
The basis for the internal control is 
defined by the overall control environment. 
The Board of Directors is responsible for 
establishing an efficient system for internal 
control and governs the work through the 
CEO. Group Management sets the tone  
for the organization, influencing the control 
consciousness of the employees. One key 
success factor for a strong control environ-
ment 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, manu-
als, and codes. All employees must follow 
these policies and guidelines. 
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 improved over previously identi-
fied risks. 
Identified risks are managed through the 
control activities in the company, which are 
documented in processes and internal con-
trol descriptions on the Company, Division, 
Business area, and Group levels. These aim 
ATLAS COPCO´S INTERNAL CONTROL SYSTEM
CONTROL ENVIRONMENT 
MONITORING
RISK  
ASSESSMENT 
CONTROL 
ACTIVITIES
INFORMATION  
AND  
COMMU­NI­CATION

Atlas Copco 2014
65
THE YEAR IN REVIEW – ADMINISTRATION REPORT
to prevent, detect and correct errors and 
non-compliances and include for example 
instructions for attests and authority to pay, 
controls in business systems as well as 
accounting and business reporting processes.
The company has information and com-
munication channels designed to ensure that 
information is identified, captured and com-
municated in a form and timeframe that 
enable employees and managers to carry out 
their responsibilities. Reporting instructions 
and accounting guidelines are communi-
cated to personnel concerned in the internal 
database The Way We Do Things, supported 
by, for example, training programs for differ-
ent categories of employees.
The company continuously monitors the 
adherence to internal policies, guidelines, 
manuals, and codes as well as efficiency in 
the control activities. Internal control is con-
tinuously evaluated and followed up on in 
the operations, including regular manage-
ment reviews and supervisory activities as 
well as through internal audits, and control 
self assessments. The Audit Committee has 
an important role in supporting the Board 
of Directors to monitor whether the internal 
control processes facilitate adequate internal 
control over financial reporting. 
Activities in 2014
In 2014, the Group internal audit function 
conducted internal audits in 113 (107) units 
out of 511 (452). The audits were conducted 
in 46 countries. A risk-based internal audit 
plan was executed. The majority of the inter-
nal audits were conducted under leadership 
of Group internal audit staff with audit 
team members having competences in 
accounting, controlling, purchasing, mar-
keting, human resources, legal, etc. Internal 
audits covered units’ relevant processes, with 
additional focus on human resources and  
IT security. IT security audits were carried 
out by the Group IT Security function and 
covered 53 (61) units.
Focus in 2015
In 2015, the Group internal audit function 
will continue its work to review processes 
and tools with focus on risks, controls and 
governance as well as recommending leading 
practices.
INTERNAL CONTROL STATISTICS
2014
2013
Operative units in the Group
511
452
Internal audits conducted 
113
107
Control self assessments 
completed
317
318
INTERNAL AUDITS
The Internal Audit process is intended to add value to each operational unit by 
providing an independent and objective assurance and consulting function as well as 
to identify and recommend improvements. Further, the process aims to serve as a tool 
for employee professional development and to identify and recommend leading 
practices within the Group. 
Internal audits are annually planned or initiated by the Group internal audit function 
with a risk-based approach. This includes for example when there is a change of 
General Manager in a company, after major negative events or structural changes, 
remarks from external auditors, when a new company is formed or acquired, or if a 
long time has passed since the last audit. Internal audits are normally performed by an 
inter-disciplinary team of people appointed from the organization. 
Atlas Copco has operations in several complex markets, where the risk of human 
rights abuses and corruption is high. Therefore, the adherence to the Business Code of 
Practice is evaluated in the internal audit process, including environmental aspects and 
business partner relationships.
FREQUENCY: All units at least once every five years
CONTROL SELF ASSESSMENT
The objective of this process is primarily to support local unit managers evaluating the 
status of their control routines and to address weak areas. One of the areas is internal 
control, which includes internal control over financial reporting. Other areas include 
legal issues, communication and branding, and the Business Code of Practice. On 
Group level the aggregated assessments of the control routines give a base for 
improvement of Group processes, instructions, etc.
FREQUENCY: Annually
HOTLINE 
The Group has a process where employees and other stakeholders can report on 
behavior or actions that are possible violations of laws or of Group policies, including 
violation of accounting and financial reporting guidelines and policies. This also 
includes perceived cases of human rights violation, discrimination or corruption. This 
process serves as a complement to similar procedures that exist on country level in 
certain countries. The reports are treated confidentially and the person who is 
reporting is guaranteed anonymity. There have been efforts to increase awareness of 
this process among all employees and managers, e.g. through training in the Business 
Code of Practice and fraud awareness.
FREQUENCY: As required
COMPLIANCE STATEMENT 
In the compliance process Group Management, divisional managements and all 
managers responsible for an operational or holding unit and certain other key positions 
are requested to sign a statement confirming compliance to the Business Code of 
Practice and applicable laws and regulations.
FREQUENCY: Annually
PROCESSES AND TOOLS

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
66
Atlas Copco 2014
FINANCIAL STATEMENTS 
AND NOTES
 MSEK unless otherwise stated
FINANCIAL STATEMENTS
66
Atlas Copco 2014
ATLAS COPCO GROUP
Page
Consolidated income statement
67
Consolidated statement of comprehensive income
67
Consolidated balance sheet
68
Consolidated statement of changes in equity
69
Consolidated statement of cash flows
70
Note
1
Significant accounting principles,  
accounting estimates and judgments
71
2
Acquisitions
77
3
Divestments and assets held for sale
79
4
Segment information
80
5
Employees and personnel expenses
82
6
Remuneration to auditors
85
7
Other operating income and expenses  
85
8
Financial income and expenses
86
9
Taxes
86
10
Other comprehensive income
87
11
Earnings per share
88
12
Intangible assets
88
13
Property, plant and equipment
90
14
Investments in associated companies
91
15
Other financial assets
91
16
Inventories
91
17
Trade receivables
92
18
Other receivables
92
19
Cash and cash equivalents
92
20
Equity
93
21
Borrowings
94
22
Leases
95
23
Employee benefits
96
24
Other liabilities
100
25
Provisions
101
26
Assets pledged and contingent liabilities
101
27
Financial exposure and principles for control  
of financial risks
101
28
Related parties
107
29
Subsequent events
107
PARENT COMPANY
Page
Income statement
108
Statement of comprehensive income
108
Balance sheet
108
Statement of changes in equity
109
Statement of cash flows
109
Note
A1
Significant accounting principles
110
A2
Employees and personnel expenses and  
remunerations to auditors
111
A3
Other operating income and expenses
111
A4
Financial income and expenses
111
A5
Appropriations
111
A6
Income tax
112
A7
Intangible assets
112
A8
Tangible assets
112
A9
Deferred tax assets and liabilities
113
A10
Shares in Group companies
113
A11
Other financial assets
113
A12
Other receivables
113
A13
Cash and cash equivalents
113
A14
Equity
113
A15
Post-employment benefits
114
A16
Other provisions
115
A17
Borrowings
116
A18
Other liabilities
116
A19
Financial exposure and principles for control  
of financial risks
117
A20
Assets pledged and contingent liabilities
117
A21
Directly owned subsidiaries
117
A22
Related parties
119

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
67
Consolidated income statement
For the year ended December 31,   
Amounts in MSEK
Note
2014
2013
Revenues
4  
93 721
83 888 
Cost of sales
  
–58 669
 –51 766
Gross profit 
  
35 052
 32 122
Marketing expenses
  
–9 825
 –8 338
Administrative expenses
  
–5 668
 –4 801
Research and development expenses
  
–2 933
 –2 117
Other operating income
7  
573
  514
Other operating expenses
7   
– 191
–331 
Share of profit in associated companies
14  
7
 7
Operating profit
4, 5, 6, 16  
17 015
17 056 
Financial income
8  
313
394  
Financial expenses
8  
–1 237
–1 184 
Net financial items
  
–924
 –790
Profit before tax
  
16 091
 16 266 
Income tax expense
9  
–3 916
 –4 184
Profit for the year
  
12 175
12 082 
Profit attributable to:
  
 
 
– owners of the parent
  
12 169
12 072 
– non-controlling interests
  
6
 10
Basic earnings per share, SEK
 11  
10.01
 9.95
Diluted earnings per share, SEK
11  
9.99
 9.92
Consolidated statement of comprehensive income
For the year ended December 31,   
Amounts in MSEK
Note
2014
2013
Profit for the year
  
12 175
12 082 
Other comprehensive income
  
 
 
Items that will not be reclassified to profit or loss
  
 
 
Remeasurements of defined benefit plans
  
–759
45 
Income tax relating to items that will not be reclassified
  
194
–18 
 
  
–565
27 
Items that may be reclassified subsequently to profit or loss
   
 
 
Translation differences on foreign operations
  
5 687
 444
– realized and reclassified to income statement
   
–
16 
Hedge of net investments in foreign operations
  
–1 052
 –712
Cash flow hedges
     
–199
 –31 
 – adjustment for amounts transferred to the initial carrying amounts of acquired operations 
 
81
– 
Income tax relating to items that may be reclassified
10  
711
410
 
  
5 228
127
Other comprehensive income for the year, net of tax
10  
4 663
154
Total comprehensive income for the year
  
16 838
12 236
Total comprehensive income attributable to:
  
 
 
– owners of the parent
  
16 806
12 229
– non-controlling interests
  
32
7

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
68
Atlas Copco 2014
Consolidated balance sheet
 
Amounts in MSEK
Note
Dec. 31, 2014
Dec. 31, 2013
ASSETS
 
 
  
 
Non-current assets
  
  
 
Intangible assets
12  
33 197
17 279 
Rental equipment
13  
3 177
2 420 
Other property, plant and equipment
13   
9 433
6 907 
Investments in associated companies
14  
115
101 
Other financial assets
15  
1 810
2 316 
Other receivables
  
56
23  
Deferred tax assets
9  
1 549
 961
Total non-current assets
  
49 337
30 007 
Current assets
  
 
 
Inventories
16  
18 364
 16 826
Trade receivables
17   
19 903
 16 619
Income tax receivables
   
480
309 
Other receivables
18  
5 632
4 798  
Other financial assets
15  
2 150
1 697 
Cash and cash equivalents
19   
9 404
17 633 
Assets classified as held for sale
  
11
2 
Total current assets
  
55 944
57 884 
TOTAL ASSETS
  
105 281
87 891 
EQUITY
Page 69  
 
 
Share capital
  
786
786 
Other paid-in capital
  
6 037
5 743 
Reserves
  
4 239
 –963
Retained earnings
   
39 513
 34 081
Total equity attributable to owners of the parent
  
50 575
 39 647
Non-controlling interests
   
178
147 
TOTAL EQUITY
  
50 753
39 794 
LIABILITIES
  
 
 
Non-current liabilities
  
 
 
Borrowings
 21  
22 182
19 997 
Post-employment benefits
23  
2 531
1 414 
Other liabilities
  
1 070
392  
Provisions
25  
888
 682
Deferred tax liabilities
9  
1 127
1 027 
Total non-current liabilities
  
27 798
  23 512 
Current liabilities
  
 
 
Borrowings
21  
2 284
 5 595
Trade payables
  
7 876
6 418 
Income tax liabilities
  
1 602
845 
Other liabilities
24   
13 475
 10 662
Provisions
25  
1 493
 1 065
Total current liabilities
  
26 730
 24 585
TOTAL EQUITY AND LIABILITIES
  
105 281
87 891 
Information concerning pledged assets and contingent liabilities is disclosed in note 26.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
69
Consolidated statement of changes in equity
2014    
Equity attributable to owners of the parent
Amounts in MSEK
Share  
capital
Other paid-in 
capital
Hedging  
reserve
 Trans­lation 
reserve
Retained 
earnings
Total
Non- 
controlling 
interests
Total  
equity
Opening balance, Jan. 1
786
5 743
–65
–898
34 081
39 647
147
39 794
Profit for the year
 
 
 
 
12 169
12 169
6
12 175
Other comprehensive income for the year
 
 
–87
5 289
–565
4 637
26
4 663
Total comprehensive income for the year
 
 
–87
5 289
11 604
16 806
32
16 838
Dividends
 
 
 
 
–6 681
–6 681
–1
–6 682
Divestment of series A shares held by Atlas Copco AB
 
277
 
 
586
863
 
863
Divestment of series B shares held by Atlas Copco AB
 
17
 
 
10
27
 
27
Share-based payment, equity settled 
 
 
 
 
 
 
 
 
– expense during the year
 
 
 
 
32
32
 
32
– exercise of options
 
 
 
 
–119
–119
 
–119
Closing balance, Dec. 31
786
6 037
–152
4 391
39 513
50 575
178
50 753
2013    
Equity attributable to owners of the parent
Amounts in MSEK
Share  
capital
Other paid-in 
capital
Hedging  
reserve
 Trans­lation 
reserve
Retained 
earnings
Total
Non- 
controlling 
interests
Total  
equity
Opening balance, Jan. 1
786 
5 628 
–46 
–1 047 
28 810 
34 131 
54 
34 185 
Profit for the year
 
  
 
 
12 072 
12 072 
10 
12 082 
Other comprehensive income for the year
  
 
–19 
149 
27 
157 
 –3
154
Total comprehensive income for the year
 
 
–19 
 149
12 099 
12 229 
 7
12 236 
Dividends
 
 
 
 
–6 668 
–6 668 
–1 
–6 669 
Change in non-controlling interests
 
 
 
 
–2 
 –2
87 
85 
Acquisition of series A shares
 
 
 
 
–390 
–390 
 
–390 
Divestment of series A shares held by Atlas Copco AB
 
98 
 
 
287
385 
 
385 
Divestment of series B shares held by Atlas Copco AB
 
17 
 
 
 12
 29
 
29 
Share-based payment, equity settled 
 
 
 
 
 
 
 
 
– expense during the year
 
 
 
 
39 
 39
 
39
– exercise of options
 
 
 
 
–106 
–106 
 
–106 
Closing balance, Dec. 31
786 
5 743 
–65 
–898 
34 081 
39 647 
147 
39 794 
See note 10 and 20 for additional information.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
70
Atlas Copco 2014
Consolidated statement of cash flows
For the year ended December 31,   
Amounts in MSEK
Note
2014
2013
Cash flows from operating activities
  
 
 
Operating profit
  
17 015
17 056 
Adjustments for:
   
 
 
       Depreciation, amortization and impairment
12, 13   
3 709
2 703 
       Capital gain/loss and other non-cash items
   
 
–298
–554
Operating cash surplus
 
 
20 426
19 205
Net financial items received/paid
  
–849
 –523 
Taxes paid
    
–3 828
–4 622 
Pension funding and payment of pension to employees
  
–115
–634
Cash flow before change in working capital 
  
15 634
13 426 
Change in:
   
 
 
Inventories
  
1 924
577 
Operating receivables
  
–280
–651 
Operating liabilities
    
412
–464
Change in working capital
  
2 056
–538 
Increase in rental equipment
   
–1 719
–1 456
Sale of rental equipment
  
416
 435
Net cash from operating activities
  
16 387
 11 867
Cash flows from investing activities
  
 
 
Investments in other property, plant and equipment
   
–1 548
 –1 255
Sale of other property, plant and equipment
   
86
64 
Investments in intangible assets
  
–1 187
–1 009 
Sale of intangible assets
  
10
12 
Acquisition of subsidiaries
2   
–8 415
 –1 493
Divestment of subsidiaries
3  
–
–56 
Investment in other financial assets, net
   
489
–735 
Net cash from investing activities
  
–10 565
–4 472 
Cash flows from financing activities
  
 
 
Dividends paid
  
–6 681
–6 668
Dividend paid to minority
   
–1
–1
Acquisition of non-controlling interest
  
–
–3
Repurchase and divestment of own shares
   
890
24
Borrowings
  
2 935
4 334
Repayment of borrowings
  
–11 151
–181
Settlement of CSA*
  
–290
–
Payment of finance lease liabilities
  
–60
–40
Net cash from financing activities
  
–14 358
–2 535
Net cash flow for the year
  
–8 536
4 860 
Cash and cash equivalents, Jan. 1
  
17 633
12 416 
Net cash flow for the year
  
–8 536
4 860 
Exchange-rate difference in cash and cash equivalents
  
307
 357
Cash and cash equivalents, Dec. 31
19  
9 404
17 633 
* Credit Support Annex, see note 27.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
71
Significant accounting principles
The consolidated financial statements comprise Atlas Copco AB, the  
Parent Company (“the Company”), and its subsidiaries (together “the 
Group” or Atlas Copco) and the Group’s interest in associated compa-
nies. Atlas Copco AB is headquartered in Nacka, Sweden.
Basis of preparation
The consolidated financial statements have been prepared in accordance 
with International Financial Reporting Standards (IFRS) as endorsed by 
the EU. The statements are also prepared in accordance with the Swedish 
recommendation RFR 1 “Supplementary Accounting Rules for Groups” 
and applicable statements issued by the Swedish Financial Reporting 
Board. These require certain additional disclosure requirements for 
Swedish consolidated financial statements prepared in accordance with 
IFRS. 
The accounting principles set out below have been consistently 
applied to all periods presented, unless otherwise stated, and for all enti-
ties included in the consolidated financial statements. The Annual Report 
for the Group and for Atlas Copco AB, including financial statements, 
was approved for issuance on February 13, 2015. The balance sheets  
and income statements are subject to approval by the Annual General 
Meeting of the shareholders on April 28, 2015.
Basis of consolidation 
The consolidated financial statements have been prepared in accordance 
with the acquisition method. Accordingly, business combinations are 
seen as if the Group directly acquires the assets and assumes the liabilities 
of the entity acquired. The consolidated income statements and balance 
sheets of the Group include all entities in which the Company, directly or 
indirectly, has control. Control exists  when the Company has power over 
the entity, is exposed, or has rights, to variable returns from its 
involvement with the entity and has the ability to use its power to affect its 
returns. Generally, control and hence consolidation is based on 
ownership. In a few exceptions, consolidation is based on agreements that 
give the Group control over an entity. See note A22 for information on 
the Group’s subsidiaries.  
Intra-group balances and internal income and expense arising from 
intra-group transactions are fully eliminated in preparing the consoli-
dated financial statements. Gains and losses arising from intra-group 
transactions that are recognized in assets, such as inventory and fixed 
assets, are eliminated in full, but losses only to the extent that there is no 
evidence of impairment.
Business combinations
At the acquisition date, the date on which control is obtained, each identi-
fiable asset acquired and liability assumed is recognized at its acquisition-
date fair value. The consideration transferred includes assets transferred 
by the Group, liabilities to the former owners of the acquiree and the 
equity interests issued by the Group in exchange for control of the 
acquiree. Any subsequent change in such fair value is recognized in profit 
or loss, unless the contingent consideration is classified as equity. Trans­
actions costs that the Group incur in connection with a business combina-
tion are expensed as incurred.
Goodwill is measured as the excess of the sum of the consideration 
transferred, the amount of any non-controlling interests in the acquiree, 
and the fair value of the Group’s previously held equity interest in the 
acquiree (if any) over the net of acquisition-date fair value amounts of the 
identifiable assets acquired and liabilities assumed. 
Non-controlling interest is initially measured either 
•	 at fair value, or 
•	 at the non-controlling interest’s proportionate share of the fair value 
of identifiable net assets. 
Subsequent profit or loss attributable to the non-controlling interest is allo-
cated to the non-controlling interest, even if it puts the non-controlling 
interest in a deficit position. Acquisitions of non-controlling interests are 
recognized as a transaction between equity attributable to owners of the 
parent and non-controlling interests. The difference between consideration 
paid and the proportionate share of net assets acquired is recognized in 
equity. For details on the acquisitions made during the year, see note 2.
Associated companies
An associate is an entity in which the Group has significant influence, but 
not control, over financial and operating policies. When the Group holds 
20–50% of the voting power, it is presumed that significant influence 
exists, unless otherwise demonstrated. Investments in associated compa-
nies are reported according to the equity method. This means that the 
carrying value of interests in an associate corresponds to the Group’s 
share of reported equity of the associate, any goodwill, and any other 
remaining fair value adjustments recognized at acquisition date. 
“Shares of profit in associated companies”, included in the income 
statements, comprises the Group’s share of the associate’s income after 
tax adjusted for any amortization and depreciation, impairment losses, 
and other adjustments arising from any remaining fair value adjustments 
recognized at acquisition date. Dividends received from an associated 
company reduce the carrying value of the investment.
Unrealized gains and losses arising from transactions with an associ-
ate are eliminated to the extent of the Group’s interest, but losses only to 
the extent that there is no evidence of impairment of the asset. When the 
Group’s share of losses in an associate equals or exceeds its interest in the 
associate, the Group does not recognize further losses unless the Group 
has incurred obligations or made payments on behalf of the associate.
Functional currency and foreign currency translation 
The consolidated financial statements are presented in Swedish krona 
(SEK), which is the functional currency for Atlas Copco AB and also the 
presentation currency for the Group’s financial reporting. Unless other-
wise stated, the amounts presented are in millions Swedish krona 
(MSEK).
Transactions in foreign currencies are translated at the foreign 
exchange rate ruling at the date of the transaction. Receivables and liabili-
ties and other monetary items denominated in foreign currencies are 
translated using the foreign exchange rate at the balance sheet date. The 
exchange gains and losses related to receivables and payables and other 
operating receivables and liabilities are included in “Other operating 
income and expenses” and foreign exchange gains and losses attributable 
to other financial assets and liabilities included in “Financial income and 
expenses”. Exchange rate differences on translation to functional currency 
are reported in “Other comprehensive income” in the following cases: 
•	 translation of a financial liability designated as a hedge of the  
net investment in a foreign operation,
•	 translation of intra-group receivables from, or liabilities to, a  
foreign operation that in substance is part of the net investment  
in the foreign operation,
•	 cash flow hedges of foreign currency to the extent that the hedge  
is effective. 
In the consolidation, the balance sheets of foreign subsidiaries are trans-
lated to SEK using exchanges rates at the end of the reporting period and 
the income statements are translated at the average rates for the reporting 
period. Foreign exchange differences arising on such translation are rec-
ognized in “Other comprehensive income” and are accumulated in the 
currency translation reserve in equity. Exchange rates for major curren-
cies that have been used for the consolidated financial statements are 
shown in note 27.
Segment reporting
An operating segment is a component of the Group that engages in busi-
ness activities from which it may earn revenue and incur expenses, and for 
which discrete financial information is available. The operating results of 
all operating segments are reviewed regularly by the Group’s President 
and CEO, the chief operating decision maker, to make decisions about 
allocation of resources to the segments and also to assess their perfor-
mance. See note 4 for additional information.
Revenue recognition 
Revenue is measured at the fair value of the consideration received or 
receivable and reduced for value added tax, estimated customer returns, 
discounts and other similar deductions. See note 4 for further information 
on revenue by segment and by geographical area.
1.
Significant accounting principles, accounting estimates and judgments

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
72
Atlas Copco 2014
Goods sold
Revenue from goods sold is recognized when the significant risks and 
rewards of ownership have been transferred to the buyer, i.e. when the 
Group retains neither continuing right to dispose of the goods nor hold 
effective control of the goods sold, recovery of the consideration is proba-
ble and the amount of the revenue and associated costs can be measured 
reliably. When the product requires installation and this constitutes a sig-
nificant part of the contract, revenue is recognized when the installation is 
completed. Revenue is not recorded for buy-back commitments if the 
substance of the agreement is that the risks and rewards of ownership 
have not been transferred to the buyer. No revenue is recognized if there is 
significant uncertainty regarding the possible return of goods. 
Services rendered
Revenue from services is recognized by reference to the stage of comple-
tion of the contract. The stage of completion is determined by the pro-
portion of costs incurred to date compared to the estimated total costs of 
the transaction. Where the outcome of a service contract cannot be esti-
mated reliably, revenue is recognized to the extent of costs incurred that 
are expected to be recoverable. When it is probable that total contract 
costs will exceed total revenue, the expected loss is recognized as an 
expense immediately. When services are performed by an indeterminate 
number of activities over the service contract period, revenue is recog-
nized linearly over that period. 
Rental operations
Rental income from rental equipment is recognized on a straight-line 
basis over the rental period. Sale of rental equipment is recognized as  
revenue when the significant risks and rewards of ownership have been 
transferred to the buyer. The carrying value of the rental equipment sold 
is recognized as cost of sales. Investments in and sales of rental equip-
ment are included in cash flows from operating activities.
Other operating income and expenses
Commissions and royalties are recognized on an accrual basis in accor-
dance with the financial substance of the agreement. Gains and losses  
on disposals of an item of non-current tangible and intangible assets are 
determined by comparing the proceeds from disposal with the carrying 
amount. Such gains and losses are recognized within “Other operating 
income” and “Other operating expenses”. See note 7 for additional  
information.
Government grants
A government grant is recognized when there is a reasonable assurance 
that it will be received and that the Group will comply with the conditions 
attached to it. Government grants that compensate the Group for 
expenses incurred are recognized in profit or loss on a systematic basis in 
the same periods in which expenses are incurred and are presented net  
of the related expense.
Financial income and expenses
Interest income and interest expenses are recognized in profit or loss using 
the effective interest method. Dividend income is recognized in profit or 
loss on the date that the Group’s right to receive payment is established. 
See note 8 for additional information.
Income taxes 
Income taxes include both current and deferred taxes. Income taxes are 
reported in profit or loss unless the underlying transaction is reported in 
“Other comprehensive income” or in equity, in which case the corre-
sponding tax is reported according to the same principle. 
Deferred tax is recognized using the balance sheet liability method.  
The calculation of deferred taxes is based on differences between the val-
ues reported in the balance sheet and their valuation for taxation, which 
are referred to as temporary differences, and the carry forward of unused 
tax losses and tax credits. Temporary differences attributable to the fol-
lowing assets and liabilities are not provided for: the initial recognition of 
goodwill, the initial recognition (other than in business combinations) of 
assets or liabilities that affect neither accounting nor taxable profit, and 
differences related to investments in subsidiaries and associated compa-
nies to the extent that they will probably not reverse in the foreseeable 
future, and for which the company is able to control the timing of the 
reversal of the temporary differences.
A deferred tax asset is recognized only to the extent that it is probable  
that future taxable profits will be available against which the asset can be 
utilized. In the calculation of deferred taxes, enacted or substantively 
enacted tax rates are used for the individual tax jurisdictions. 
Deferred tax assets and liabilities are offset when there is a legally 
enforceable right to set off current tax assets against current tax liabilities 
and when they relate to income taxes levied by the same taxation author-
ity and the Group intends to settle its current tax assets and liabilities on  
a net basis. For details regarding taxes, see note 9.
Earnings per share
Basic earnings per share are calculated based on the profit for the year 
attributable to owners of the parent and the basic weighted average num-
ber of shares outstanding. Diluted earnings per share are calculated 
based on the profit for the year attributable to owners of the parent and 
the diluted weighted average number of shares outstanding. Dilutive 
effects arise from 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. 
Stock options have a dilutive effect when the average share price dur-
ing the period exceeds the exercise price of the options. When calculating 
the dilutive effect, the exercise price is adjusted by the value of future ser-
vices related to the options. If options for which employees can choose 
settlement in shares or cash are dilutive, the profit for the year is adjusted 
for the difference between cash-settled and equity-settled treatment of 
options and the more dilutive of cash settlement and share settlement is 
used in calculating earnings per share. See note 11 for more details.
Intangible assets
Goodwill 
Goodwill is recognized at cost, as established at the date of acquisition of  
a business (see “Business combinations”), less accumulated impairment 
losses, if any. Goodwill is allocated to the cash-generating units (CGU) 
that are expected to benefit from the synergies of the business combina-
tion. Impairment testing is made at least annually or whenever the need is 
indicated. The impairment test is performed at the level on which good-
will is monitored for internal management purposes. The four business 
areas of Atlas Copco’s operations have been identified as CGUs. Good-
will is reported as an indefinite useful life intangible asset. 
Technology-based intangible assets
Expenditure on research activities is expensed as incurred. Research proj-
ects acquired as part of business combinations are initially recognized at 
their fair value at the acquisition date. Subsequent to initial recognition, 
these research projects are carried at cost less amortization and impair-
ment losses. Expenditure on development activities are expensed as 
incurred unless the activities meet the criteria for being capitalized i.e.: 
•	 the product or process being developed is estimated to be technically 
and commercially feasible, and 
•	 the Group has the intent and ability to complete and sell or use the 
product or process. 
The expenditure capitalized includes the cost of materials, direct labor, 
and other costs directly attributable to the project. Capitalized develop-
ment expenditure is carried at cost less accumulated amortization and 
impairment losses.
Trademarks
Trademarks acquired by the Group are capitalized based on their fair 
value at the time of acquisition. Certain trademarks are estimated to  
have an indefinite useful life and are carried at cost less accumulated 
impairment losses. They are tested at least annually for impairment. 
Other trademarks, which have finite useful lives, are carried at cost less 
accumulated amortization and impairment losses.
Marketing and customer related intangible assets
Acquired marketing and customer related intangibles are capitalized 
based on their fair value at the time of acquisition and are carried at cost 
less accumulated amortization and impairment losses.
1.
Significant accounting principles, accounting estimates and judgments, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
73
Other intangible assets
Acquired intangible assets relating to contract-based rights, such as 
licenses or franchise agreements, are capitalized based on their fair value 
at the time of acquisition and carried at cost less accumulated amortiza-
tion and impairment losses. Expenditure on internally generated good-
will, trademarks and similar items is expensed as incurred. Changes in the 
Group’s intangible assets during the year are described in note 12.
Property, plant and equipment 
Items of property, plant and equipment are carried at cost less accumu-
lated depreciation and impairment losses. Cost of an item of property, 
plant and equipment comprises purchase price, import duties, and any 
cost directly attributable to bringing the asset to the location and condi-
tion for use. Borrowing cost for assets that need a substantial period of 
time to get ready for their intended use are included in the cost value until 
the assets are substantially ready for their use or sale and are thereafter 
depreciated. The Group capitalizes costs on initial recognition and on 
replacement of significant parts of property, plant and equipment if it is 
probable that the future economic benefits embodied will flow to the 
Group and the cost can be measured reliably. All other costs are recog-
nized as an expense in profit or loss when incurred.
Rental equipment
The rental fleet is comprised of diesel and electric powered air compres-
sors, generators, air dryers, and to a lesser extent general construction 
equipment. Rental equipment is initially recognized at cost and is depreci-
ated over the estimated useful lives of the equipment. Rental equipment is 
depreciated to a residual value estimated at 0–10% of cost.
Depreciation and amortization
Depreciation and amortization is calculated based on cost using the 
straight-line method over the estimated useful life of the asset. Parts of 
property, plant and equipment with a cost that is significant in relation  
to the total cost of the item are depreciated separately when the useful 
lives of the parts do not coincide with the useful lives of other parts of  
the item. The following useful lives are used for depreciation and  
amortization: 
Technology-based intangible assets
3–15 years
Trademarks with definite lives
5–15 years 
Marketing and customer related intangible assets
5–10 years
Buildings
25–50 years
Machinery and equipment
3–10 years
Vehicles
4–5 years
Computer hardware and software
3–10 years
Rental equipment
3–8 years
The useful lives and residual values are reassessed annually. Land, assets 
under construction, goodwill, and trademarks with indefinite lives are not 
depreciated or amortized. For changes in the Group’s property, plant and 
equipment see note 13.
Leasing
The Group acts both as lessor and lessee. Leases are classified as either 
finance leases or operating leases. A finance lease entails the transfer to 
the lessee of substantially all of the economic risks and benefits associ-
ated with ownership. If this is not the case, the lease is accounted for as  
an operating lease.
Group as lessee
For the lessee, a financial lease implies that the fixed asset leased is recog-
nized as an asset in the balance sheet. Initially, a corresponding liability is 
recorded. Upon initial recognition, the leased asset is measured at an 
amount equal to the lower of its fair value and the present value of the 
future minimum lease payments. Fixed assets under finance leases are 
depreciated over their estimated useful lives, while the lease payments are 
reported as interest and amortization of the lease liability. For operating 
leases, the lessee does not account for the leased asset in its balance sheet. 
The costs of operating leases are recorded in the income statement on a 
straight-line basis over the term of the lease. 
Group as lessor
In cases where the Group acts as the lessor under an operating lease, the 
asset is classified as rental equipment and is subject to the Group’s depre-
ciation policies. The lease payments are included in profit or loss on a 
straight-line basis over the term of the lease. Under finance leases where 
the Group acts as lessor, the transaction is recorded as a sale and a lease 
receivable, comprising the future minimum lease payments and any resid-
ual value guaranteed to the lessor, is recorded. Lease payments are recog-
nized as interest income and repayment of the lease receivable. See note 
22 for more details on leases.
Impairment of non-financial assets
The carrying values of the Group’s non-financial assets are reviewed at 
least at each reporting date to determine whether there is any indication 
of impairment. If any such indication exists, the Group estimates the 
recoverable amount of the asset. An impairment loss is recognized if the 
carrying amount of an asset or its cash-generating unit (CGU) exceeds its 
recoverable amount (i.e. the greater of fair value less costs to sell and 
value in use). In assessing value in use, the estimated future cash flows are 
discounted to their present value using a discount rate that reflects current 
market assessments of the time value of money and the risks specific to 
the asset or CGU. For the purpose of assessing impairment, assets are 
grouped in CGUs, which are the smallest identifiable groups of assets that 
generate cash inflows that are largely independent of the cash inflows 
from other assets or group of assets. Impairment losses are recognized in 
profit or loss. An impairment loss related to goodwill is not reversed. In 
respect of other assets, impairment losses in prior periods are reviewed 
for possible reversal of the impairment at each reporting date.
Inventories
Inventories are valued at the lower of cost and net realizable value. Net 
realizable value is the estimated selling price for inventories less all esti-
mated costs of completion and costs necessary to make the sale. Invento-
ries are recognized according to the first-in-first-out principle and 
includes the cost of acquiring inventories and bringing them to their 
existing location and condition. Inventories manufactured by the Group 
and work in progress include an appropriate share of production over-
heads based on normal operating capacity. Inventories are reported net 
of deductions for obsolescence and internal profits arising in connection 
with deliveries from the production companies to the customer centers. 
See note 16 for more details.
Equity 
Shares issued by the Company are classified as equity. Incremental costs 
directly attributable to the issue of ordinary shares and share options are 
recognized as a deduction from equity, net of any tax effect.
When share capital recognized as equity is repurchased, the amount 
of the consideration paid is recognized as a deduction from equity net of 
any tax effect. Repurchased shares are classified as treasury shares and are 
presented as a deduction from total equity. When treasury shares are sold 
or subsequently reissued, the amount received is recognized as an increase 
in equity and the resulting surplus or deficit on the transaction is trans-
ferred to or from other paid-in capital. 
Provisions
Provisions are recognized:
•	 when the Group has a legal or constructive obligation (as a result of  
a past event), 
•	 it is probable that the Group will have to settle the obligation, and 
•	 the amount of the obligation can be estimated reliably. 
The amount recognized as a provision is the best estimate of the consider-
ation required to settle the present obligation at the balance sheet date.  
If the effect of the time value of money is material, the provision is  
determined by discounting the expected future cash flows of estimated 
expenditures.
Provisions for product warranties are recognized as cost of sales at 
the time the products are sold based on the estimated cost using historical 
data for level of repairs and replacements.
A restructuring provision is recognized when the Group has approved 
a detailed and formal restructuring plan and the restructuring has either 
commenced or been announced publicly.
Present obligations arising under onerous contracts are recognized as 
1.
Significant accounting principles, accounting estimates and judgments, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
74
Atlas Copco 2014
provisions. An onerous contract is considered to exist where the Group 
has a contract under which the unavoidable costs of meeting the obliga-
tions under the contract exceed the economic benefits expected to be 
received from the contract. Before a provision is established, the Group 
recognizes any impairment loss on the asset associated with the contract. 
For details on provisions see note 25. 
Post-employment benefits
Post-employment benefit plans are classified either as defined contribu-
tion or defined benefit plans. Under a defined contribution plan, the 
Group pays fixed contributions into a separate entity and will have no 
legal or constructive obligation to pay further amounts if the fund does 
not hold sufficient assets to pay all employee benefits. Contributions to 
defined contributions plans are expensed when employees provide ser-
vices entitling them to the contribution. 
Other post-employment benefit plans are defined benefit plans and it 
is the Group’s obligation to provide agreed benefits to current and former 
employees. The net obligation of defined benefit plans is calculated by 
estimating the amount of future benefits that employees have earned in 
return for their services in current and prior periods. The amount is dis-
counted to determine its present value and the fair values of any plan 
assets are deducted. Funded plans with net assets, i.e. plans with assets 
exceeding the commitments, are reported as financial non-current assets. 
The cost for defined benefit plans is calculated using the Projected 
Unit Credit Method, which distributes the cost over the employee’s ser-
vice period. The calculation is performed annually by independent actu-
aries using actuarial assumptions such as employee turnover, mortality, 
future increase in salaries and medical cost. Changes in actuarial assump-
tions, experience adjustments of obligations and changes in fair value of 
plan assets result in remeasurements and are recognized in other compre-
hensive income. Each quarter a remeasurement is performed to adjust the 
present value of pension liabilities and the fair value of pension assets 
against “Other comprehensive income”. Net interest on defined benefit 
obligations and plan assets is reported as interest income or interest 
expenses. See note 23 for additional information.
Share-based compensation 
The Group has share-based incentive programs, consisting of share 
options and share appreciation rights, which have been offered to  
certain employees based on position and performance. Additionally, the 
Board is offered synthetic shares.
The fair value of share options that can only be settled in shares 
(equity-settled) is recognized as an employee expense with a correspond-
ing increase in equity. The fair value, measured at grant date using the 
Black-Scholes formula, is recognized as an expense over the vesting 
period. The amount recognized as an expense is adjusted to reflect the 
actual number of share options that vest. 
The fair value of the share appreciation rights, synthetic shares, and 
options with a choice for employees to settle in shares or cash is recog-
nized in accordance with principles for cash-settled share-based pay-
ments. The value is recognized as an employee expense with a correspond-
ing increase in liabilities. The fair value, measured at grant date and 
remeasured at each reporting date using the Black-Scholes formula, is 
accrued and recognized as an expense over the vesting period. Changes in 
fair value are, during the vesting period and after the vesting period until 
settlement, recognized in profit or loss as an employee expense. The accu-
mulated expense recognized equals the cash amount paid at settlement. 
Social security charges are paid in cash and are accounted for in con-
sistence with the principles for cash-settled share-based payments, regard-
less of whether they are related to equity- or cash-settled share-based  
payments. See note 23 for details.
Financial assets and liabilities – financial instruments 
Recognition and derecognition
Financial assets and liabilities are recognized when the Group becomes  
a party to the contractual provision of the instrument. Transactions of 
financial assets are accounted for at trade date, which is the day when the 
Group contractually commits to acquire or dispose of the assets. Trade 
receivables are recognized on issuance of invoices. Liabilities are recog-
nized when the other party has performed and there is a contractual obli-
gation to pay. Derecognition, fully or partially, of a financial asset occurs 
when the rights in the contract have been realized or mature, or when the 
Group no longer has control over it. A financial liability is derecognized, 
fully or partially, when the obligation specified in the contract is dis-
charged or otherwise expires. 
A financial asset and a financial liability are offset and the net 
amount presented in the balance sheet when there is a legal right to offset 
the recognized amounts and there is an intention to either settle on a net 
basis or to realize the asset and settle the liability simultaneously.
Measurement of financial instruments
Financial instruments are measured, classified and recognized according 
to IAS 39 in the following categories:
The Group classifies its financial assets in the following categories
•	 Financial assets at fair value through profit or loss
•	 Loans and receivables
•	 Held-to-maturity investments
•	 Assets available for sale 
The Group classifies its financial liabilities in the following categories:
•	 Financial liabilities at fair value through profit or loss 
•	 Other financial liabilities measured at amortized cost using the  
effective interest method
Financial assets and liabilities at fair value through profit or loss: This cate-
gory includes financial assets and liabilities held for trading or are desig-
nated as such upon initial recognition. A financial asset or liability is held 
for trading if the Group manages such investments and makes purchase 
and sale decisions based on their fair value. A derivative that is not desig-
nated or effective as hedging instrument is also categorized as held for 
trading. Financial instruments in this category are measured at fair value 
and changes therein are recognized in profit or loss. Fair value is deter-
mined in the manner described in note 27. 
Loans and receivables: Loans and receivables are non-derivative financial 
assets with fixed or determinable payments that are not listed in an active 
market, such as trade and other receivables and cash and cash equiva-
lents. Loans and receivables are measured at amortized cost using the 
effective interest method, less any impairment losses. 
Held-to-maturity investments: Held-to-maturity investments are non-derivative 
financial assets with fixed or determinable payments and fixed maturity 
dates that the Group has the positive intention and ability to hold to 
maturity. Held-to-maturity-investments are measured at amortized cost 
using the effective interest rate method, less any impairment losses.
Available-for-sale financial assets: This category consists of non- 
derivatives that are either designated as available-for-sale or are not classi-
fied as any of above categories. These assets are measured at fair value. 
Changes therein are recognized in “Other comprehensive income”, except 
for impairment losses and foreign exchange gains and losses on available-
for-sale monetary items which are recognized in profit or loss. When an 
investment is derecognized, the cumulative gain or loss in other compre-
hensive income is transferred to profit or loss. Fair value is determined in 
the manner described in note 27.
Other financial liabilities: Other financial liabilities are measured at  
amortized cost using the effective interest method. Trade payables and 
loan liabilities are recognized in this category. 
Impairment of financial assets
Financial assets, except those classified as fair value through profit and 
loss, are assessed for indicators of impairment at the end of each report-
ing period. A financial asset is considered to be impaired if objective evi-
dence indicates that, as a result of one or more events that occurred after 
the initial recognition of the financial asset, the estimated future cash flow 
of the investment has been affected negatively. The impairment is made 
on an individual basis for significant financial assets and in some cases 
collectively in groups with similar credit risks. Impairment losses are rec-
ognized in profit or loss. An impairment loss is reversed if the reversal can 
be objectively related to an event occurring after the impairment loss was 
recognized. For financial assets measured at amortized cost and available-
for-sale financial assets that are debt securities, the reversal is recognized 
1.
Significant accounting principles, accounting estimates and judgments, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
75
in profit or loss. For available-for-sale financial assets that are equity  
securities, the reversal is recognized in other comprehensive income.
Derivatives and hedge accounting
Derivatives are initially recognized at fair value on the date a derivative  
contract is entered into and are subsequently measured at fair value. The 
method of recognizing the resulting gain or loss depends on whether the 
derivative is designated as a hedging instrument, and if so, the nature of  
the item hedged. Changes in fair value for derivatives that do not fulfill 
the criteria for hedge accounting are recognized as operating or financial 
transactions based on the purpose of the use of the derivative. Interest 
payments for interest swaps are recognized as interest income or expense, 
whereas changes in fair value of future payments are presented as gains or 
losses from financial instruments.
In order to qualify for hedge accounting the hedging relationship 
must be
•	 formally designated, 
•	 expected to be highly effective, and 
•	 documented. 
The Group assesses, evaluates, and documents effectiveness both at hedge 
inception and on an on-going basis. 
Fair value hedges: Changes in the fair value of derivatives that are desig-
nated and qualify as fair value hedges are recognized in profit or loss 
together with any changes in the fair value of the hedged asset or liability. 
The Group applies fair value hedge accounting for interest rate swaps 
used for hedging fixed interest risk on borrowings.
Cash flow hedges: Changes in the fair value of the hedging instrument are 
recognized in other comprehensive income to the extent that the hedge is 
effective and the accumulated changes in fair value are recognized as a 
separate component in equity. Gains or losses relating to the ineffective 
part of hedges are recognized immediately in profit or loss. 
The amount recognized in equity through Other comprehensive 
income is reversed to profit or loss in the same period in which the hedged 
item affects profit or loss. However, when the hedged forecast transaction 
results in the recognition of a non-financial asset or a non-financial liabil-
ity, the amount previously recognized in other comprehensive income and 
accumulated in equity are transferred from equity and included in the ini-
tial measurement of the cost of the non-financial asset or liability. When a 
forecast transaction is no longer expected to occur, the gain or loss accu-
mulated in equity is recognized immediately in profit or loss. The Group 
uses foreign currency forwards to hedge part of the future cash  
flows from forecasted transactions in foreign currencies. Interest rate 
swaps are also used as cash flow hedges for hedging interest on borrow-
ings with variable interest.
Hedge of net investments in foreign operations: The Group hedges a sub-
stantial part of net investments in foreign operations. Changes in the 
value of the hedge instrument relating to the effective portion of the 
hedge are recognized in Other comprehensive income and accumulated in 
equity. Gains or losses relating to the ineffective portion are recognized 
immediately in profit or loss. On divestment of foreign operations, the 
gain or loss accumulated in equity is recycled through profit or loss, 
increasing or decreasing the profit or loss on the divestment. The Group 
uses loans and forward contracts as hedging instruments.
Asset held for sale
Assets are classified as held for sale if their value, within one year, will be 
recovered through a sale and not through continued use in the operations. 
On the reclassification date, assets and liabilities are measured at the lower 
of fair value less selling expenses and the carrying amount. Following 
reclassification, the assets are no longer depreciated or amortized. Gains 
and losses recognized on remeasurements and disposals are reported in 
profit or loss.  
Contingent liabilities 
A contingent liability is a possible obligation or a present obligation that 
arises from past events that is not reported as a liability or provision, due 
either to that it is not probable that an outflow of resources will be 
required to settle the obligation or that a sufficiently reliable calculation 
of the amount cannot be made.
New or amended accounting standards in 2014
The following revised and amended IFRS standards have been applied  
by the Group from 2014.
Amendments to IAS 32 Offsetting Financial Assets and Financial 
Liabilities 
The standard clarifies existing application issues relating to the require-
ments for offset of financial assets and financial liabilities. The standard 
has not had any material effects for the Group.
“The package of five”
IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrange-
ments, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate 
Financial Statements (Revised 2011) and IAS 28 Investments in Associ-
ates and Joint Ventures (Revised 2011) are called “The package of five”  
in EU. The group has reviewed its investments in other entities to assess 
whether the conclusion to consolidate is different under IFRS 10 than 
under IAS 27. No differences were found for any of the investments, 
therefore these standards have not had any impact on the consolidated 
financial statements, except for additional disclosures.
Amendment to IAS 39 Novation of Derivatives and Continuation of  
Hedge Accounting
This amendment allows the continuation of hedge accounting when a 
derivative is novated to a clearing counterparty and certain conditions are 
met. The amendment has not had any impact for the Group.
New or amended accounting standards effective after 2014
The following standards, interpretations, and amendments have been 
issued but were not effective as of December 31, 2014 and have not been 
applied by the Group. The assessment of the effect that the implementa-
tion of these standards and interpretations could have on the consoli-
dated financial statements is preliminary.
Improvements to IFRSs 2010–2012 and IFRSs 2011–2013 issued in 
December 2013
The improvements include a number of amendments to various IFRSs. 
The improvements are not expected to have any material impact for the 
Group.
Amendments to IAS 19 (2011) issued in November 2013
The amendments permit contributions that are independent of the num-
ber of years of service to be recognized as a reduction in the service cost 
in the period in which the service is rendered. The improvements are not 
expected to have any material impact for the Group.   
Amendment to IFRS 5 – Non-current Assets Held for Sale and  
Discountinued Operations – Changes in methods of disposal*
The amendment clarifies guidance to have consistent criteria and 
accounting requirements for an asset (or disposal group) classified as  
held for sale and for an asset (or disposal group) classified as held for  
distribution to owners. There is no change in the method of evaluation 
and reclassification.
Amendment to IFRS 7 – Financial Instruments Disclosures  
– Servicing contracts*
The amendment proposes to add guidance that clarifies how to apply  
disclosure requirements for servicing contracts that constitute continuing 
involvement of transferred financial assets.  
Amendment to IFRS 7 – Financial Instruments Disclosures – Applicability 
of the amendments to IFRS 7 to condensed interim financial statements*
The amendment proposes to clarify that the additional disclosure 
required by the amendments to IFRS 7 Disclosure–Offsetting Financial 
Assets and Financial Liabilities is not specifically required for all interim 
periods, except when additional disclosure is required to be given in con-
densed interim financial statements prepared in accordance with IAS 34. 
1.
Significant accounting principles, accounting estimates and judgments, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
76
Atlas Copco 2014
Amendments to IAS 16 and IAS 38 - Clarification of Acceptable  
Methods of Depreciation and Amortization issued in May 2014*
The amendment is not expected to have any material impact for  
the Group.
Amendments to IAS 19 Employee Benefits – Discount rate:  
regional market issue*
The amendments determine to use the discount rate by reference to  
market yields at the end of the reporting period on high quality corporate 
bonds for the countries where there is no deep market in such bonds.  
The amendment substitutes the word “countries” by “currencies”. 
IFRS 9 Financial Instruments* 
The standard is intended to replace IAS 39 Financial Instruments:  
Recognition and Measurements, and addresses the classification and 
measurement of financial instruments and hedge accounting. It is  
likely to affect the Group’s accounting of financial assets and financial  
liabilities. The effective date is January 1, 2018 and the Group is yet to 
assess the full impact of IFRS 9.  
 
Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between 
an Investor and its Associate or Joint Venture issued in September 2014* 
The amendment is not expected to have any material impact for the Group.
IFRS 15 Revenue from Contracts with Customers issued in May 2014*
This new standard that replaces existing revenue recognition standards 
specifies how and when the Group will recognize revenue as well as 
requiring the Group to provide users of financial statements with more 
informative, relevant disclosures. The effective date is January 1, 2017. 
The assessment of the effect on the revenue recognition is under  
investigation. 
IFRIC 21 Levies
The interpretation addresses when a liability to pay a levy to a govern-
ment should be recognized. The Interpretation has not had any impact 
for the Group.
* Indicates that the standard has not yet been endorsed by the EU.
Critical accounting estimates and judgments 
The preparation of financial reports requires management’s judgment 
and the use of estimates and assumptions that affects the amounts 
reported in the consolidated financial statements. These estimates and 
associated assumptions are based on historical experience and various 
other factors that are believed to be reasonable under the prevailing cir-
cumstances. Actual result may differ from those estimates. The estimates 
and assumptions are reviewed on an on-going basis. Changes in account-
ing estimates are recognized in the period which they are revised and in 
any future periods affected.
The estimates and the judgments which, in the opinion of manage-
ment, are significant to the underlying amounts included in the financial 
reports and for which there is a significant risk that future events or new 
information could entail a change in those estimates or judgments are  
as follows:
Impairment of goodwill, other intangible assets and other  
long-lived assets
Key sources of estimation uncertainty
Goodwill and certain trademarks are not amortized but are subject to 
annual tests for impairment. Other intangible assets and other long-lived 
assets are amortized or depreciated based on management’s estimates of 
the period that the assets will generate revenue but are also reviewed regu-
larly for indications of impairment. The impairment tests are based on a 
review of the recoverable amount, which is estimated based on manage-
ment’s projections of future cash flows using internal business plans and 
forecasts. 
Accounting judgment
Asset impairment requires management’s judgment, particularly in 
assessing: 
–	 whether an event has occurred that may affect asset values, 
–	 whether the carrying value of an asset can be supported by the net 
present value of future cash flows, which are estimated based upon  
the continued use of the asset in the business,  
–	 the appropriate assumptions to be applied in preparing cash flow  
projections, and
–   the discounting of these cash flows.
 
Changing the assumptions selected by management to determine the 
level, if any, of impairment could affect the financial position and results 
of operation. See note 12.
Pension and other post-employment benefit valuation 
assumptions 
Key sources of estimation uncertainty
Pensions and other post-employment obligations are dependent on the 
assumptions established by management and used by actuaries in calcu-
lating such amounts. The key assumptions include discount rates, infla-
tion, future salary increases, mortality rates, and health care cost trend 
rates. The actuarial assumptions are reviewed on an annual basis and are 
changed when it is deemed appropriate. 
See note 23 for additional information regarding assumptions used  
in the calculation of pension and post-employment obligations. 
Trade and financial receivable 
Key sources of estimation uncertainty
The Group estimates the risk that receivables will not be paid and pro-
vides for doubtful accounts based on specific provisions for known cases 
and collective provisions for losses based on historical loss levels. 
Accounting judgment
Management’s judgment considers rapidly changing market conditions 
which may be particularly sensitive in customer financing operations. 
Additional information is included in section “Credit risk” in note 27. 
Inventory
Accounting judgment
The Group values inventory at the lower of historical cost, based on the 
first-in, first-out basis, and net realizable value. The calculation of net 
realizable value involves management’s judgment as to the estimated sales 
prices, over-stock articles, out-dated articles, damaged goods, and selling 
costs. If the estimated net realizable value is lower than cost, a valuation 
allowance is established for inventory obsolescence. See note 16 for addi-
tional information.
Legal proceedings and tax claims
Accounting judgment 
Atlas Copco recognizes a liability when the Group has an obligation from 
a past event involving the transfer of economic benefits and when a rea-
sonable estimate can be made of what the transfer might be. The Group 
reviews outstanding legal cases regularly in order to assess the need for 
provisions in the financial statements. These reviews consider the factors 
of the specific case by internal legal counsel and through the use of out-
side legal counsel and advisors when necessary. The financial statements 
may be affected to the extent that management’s assessments of the  
factors considered are not consistent with the actual outcome.
Additionally, the legal entities of the Group are frequently subject  
to audits by tax authorities in accordance with standard practice in the 
countries where the Group operates. In instances where the tax authori-
ties have a different view on how to interpret the tax legislation, the 
Group makes estimates as to the likelihood of the outcome of the dispute, 
as well as estimates of potential claims. The actual results may differ from 
these estimates.
1.
Significant accounting principles, accounting estimates and judgments, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
77
1.
Significant accounting principles, accounting estimates and judgments, continued 
The following summarizes the significant acquisitions during 2014 and 2013:
Closing date
 
Country
Business area
Revenues 1) 
Number of  
employees 1)
2014 Dec. 31
Titan Technologies International Inc.
U.S.A
Industrial Technique
35
14
2014 Sep. 10
Henrob 
U.S.A and  
United Kingdom
Industrial Technique
1 063
400
2014 Sep. 3
Ash Air (NZ) Ltd. and Fox Air NZ Ltd.
New Zealand
Compressor Technique
162
120
2014 May 27
Cavaletti Equipamentos e Servicos Ltda
Brazil
Compressor Technique
26
34
2014 May 5
National Pump & Compressor Ltd. & McKenzie 
Compressed Air Inc., distributor
U.S.A
Compressor Technique
2) 
120
2014 Feb. 3
Geawelltech, distributor
Sweden
Mining and Rock Excavation Technique
2)
19
2014 Jan. 9
Edwards Group
Global
Compressor Technique
6 950
3 400
2013 Nov. 22
Tentec Ltd.
United Kingdom
Industrial Technique
105
65
2013 Oct. 17
Archer Underbalanced Services
U.S.A.
Mining and Rock Excavation Technique
230
75
2013 Oct. 14
Synatec
Germany
Industrial Technique
105
120
2013 Sep. 10
Pneumatic Holdings
U.S.A.
Construction Technique
73
16
2013 Sep. 9
Dost Kompresör, distributor 
Turkey
Compressor Technique
2) 
16
2013 May 3
National Pump & Compressor, distributor 
U.S.A.
Compressor Technique
 2)
45
2013 May 2
Saltus-Werk Max Forst GmbH
Germany
Industrial Technique
70
65
2013 Apr. 23
Rapid-Torc
U.S.A. and Belgium
Industrial Technique
75
30
2013 Apr. 3 
MEYCO 
Switzerland
Mining and Rock Excavation Technique
190
45
2013 Mar. 5
Shandong Rock Drilling Tools  Co., Ltd.
China
Mining and Rock Excavation Technique
420
687
2013 Feb. 28
Air et Techniques Energies Provence, distributor 
France
Compressor Technique
2)
30
1)  Annual revenues and number of employees at time of acquisition.
2)  Former distributor of Atlas Copco products. No revenues are disclosed for former Atlas Copco distributors.
All acquisitions in 2014 were made through the purchase of 100 % of shares and voting rights or through the purchase of the net assets of the acquired 
operations. The Group received control over the operations upon the date of acquisition. No equity instruments have been issued in connection with the 
acquisitions. All acquisitions have been accounted for using the acquisition method.
The amounts presented in the following tables detail the recognized amounts aggregated by business area, as the relative amounts of the individual 
acquisitions are not considered significant. The fair values related to intangible assets are amortized over 5–15 years. For those acquisitions that include 
a contingent consideration clause, the fair value of the contingent consideration has been calculated based on a discount rate of 10.5%. The Group is in 
the process of reviewing the final values for the acquired businesses. No adjustments are expected to be material. Minor adjustments related to the 
acquisitions made in 2013 are included in the following tables. 
2.
Acquisitions
Deferred taxes
Key sources of estimation uncertainty
Deferred tax assets are recognized for temporary differences between  
the carrying amounts for financial reporting purposes of assets and  
liabilities and the amounts used for taxation purposes and for tax loss 
carry-forwards. The Group records deferred tax assets based upon man-
agement’s estimates of future taxable profit in different tax jurisdictions.  
The actual results may differ from these estimates, due to change in the 
business climate and change in tax legislation. See note 9.
Revenue recognition  
Key sources of estimation uncertainty
Revenue from services is recognized in profit or loss by reference to the 
stage of completion of the transaction at the balance sheet date. The stage 
of completion is determined based on the proportion that costs incurred 
to date bear to the estimated total costs of the transaction. 
Accounting judgment
Management’s judgment is used, for instance, when assessing: 
–	 if the risks and rewards have been transferred to the buyer, to deter-
mine if revenue and cost should be recognized in the current period, 
–	 the degree of completion of service contracts and the estimated  
total costs for such contracts, to determine the revenue and cost to  
be recognized in the current period and whether any losses need to  
be recognized, and
–	 the customer credit risk (i.e. the risk that the customer will not  
meet the payment obligation), to determine and justify the revenue  
recognized in the current period.
Warranty provisions
Key sources of estimation uncertainty
Provisions for product warranties should cover future commitments for 
the sales volumes already realized. Warranty provision is a complex 
accounting estimate due to the variety of variables which are included in 
the calculations. The calculation methods are based on the type of prod-
ucts sold and historical data for level of repairs and replacements. The 
underlying estimates for calculating the provision is reviewed at least 
quarterly as well as when new products are being introduced or when 
other changes occur which may affect the calculation. See note 25.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
78
Atlas Copco 2014
Compressor Technique
Recognized values
2014
2013
Intangible assets
4 256
64
Property, plant and ­equipment
1 280
10
Other assets
2 547
34
Cash and cash equivalents
917
14
Interest-bearing loans and borrowings
–3 305
–2
Other liabilities and ­provisions
–2 681
–38
Net identifiable assets
3 014
82
Goodwill
5 257
21
Total consideration
8 271
103
Deferred consideration
13
– 
Cash and cash equivalents acquired
–917
–14
Net cash outflow
7 367
89
On January 9, the Compressor Technique business area closed the acquisition 
of the Edwards Group, headquartered in the United Kingdom. Edwards is a 
technology and market leader in sophisticated vacuum products and abate-
ment solutions with more than 90 years’ experience. The products and services 
are integral to manufacturing processes, such as for semiconductors and flat 
panel displays, and are used within an increasingly diverse range of industrial 
applications. The acquisition of Edwards offers Atlas Copco an opportunity 
to expand into a growing business which serves industries that are well-known 
to Atlas Copco. There are several synergies between vacuum and compressed 
air solutions in sales, service and technology development. Intangible assets of 
3 933 and goodwill of 5 118 were recorded on the purchase. For more informa-
tion about the acquired assets and liabilities, see page 79. 
In May, U.S.-based Quincy Compressor LLC acquired the compressor 
business of National Pump & Compressor Ltd. and McKenzie Compressed 
Air Inc. National Pump & Compressor’s business is located in Texas and  
Alabama, while McKenzie Compressed Air is focused on Texas. The busi-
nesses are focused on distribution, service and rental of compressor-related 
equipment for use in such areas as manufacturing, construction, petrochemi-
cal, refinery and oil fields. The acquisitions will allow Quincy Compressor to 
further strengthen its presence in Texas, especially in the Gulf Coast region. 
Intangible assets of 196 and goodwill of 108 were recorded on the purchase. 
The goodwill is tax deductible. 
Brazilian Cavaletti Equipamentos e Servicos Ltda, a competitor dealer for 
the São Paulo country side area, with a strong focus on aftermarket, was also 
acquired in May. By introducing the Chicago Pneumatic brand to the com-
pany, the rationale for the acquisition is to extend the footprint in the Sao 
Paolo area. Intangible assets of 15 were recorded on the purchase. 
The compressor distribution and service business from the Lancaster 
Group in New Zealand was acquired in September.  The acquired businesses 
were those of Ash Air (NZ) Ltd., Fox Air NZ Ltd., MBAR 2011 Ltd. and  
Ash Air Oil & Gas Ltd. The businesses provide high-quality sales and service 
of industrial compressors and related equipment to a broad range of custom-
ers in the region. By acquiring this group of high-quality distributors,  
Atlas Copco further expands and strengthens its presence in New Zealand. 
Intangible assets of 112 and goodwill of 31 were recorded on the purchase. 
The goodwill is not deductible for tax purposes. 
Industrial Technique
Recognized values
2014
2013
Intangible assets
1 348
225
Property, plant and equipment
529
35
Other assets
418
125
Cash and cash equivalents
40
6
Interest-bearing loans and borrowings
–302
–33
Other liabilities and provisions
–670
–95
Net identifiable assets
1 363
263
Goodwill
1 807
308
Total consideration
3 170
571
Deferred consideration
–2 135
–5
Cash and cash equivalents acquired
–40
–6
Net cash outflow
995
560
2.
Acquisitions, continued
In September, the Industrial Technique business area acquired self-pierce  
riveting specialist Henrob, with main facilities in the U.S. and the U.K. Henrob  
is a pioneer and market leader in self-pierce riveting, a mechanical fastening 
process for joining two or more sheets of material where welding is difficult, 
e.g. aluminum, and the acquisition offers Atlas Copco an opportunity to 
expand in a fast-growing market segment, with state-of-the art technology. 
Intangible assets of 1 332 and goodwill of 1 802 were recorded on the pur-
chase. The goodwill is not tax deductible. 
U.S.A.-based Titan Technologies International Inc., a provider of power-
ful bolting tools to the oil and gas and other industries, was acquired in 
December. The acquisition expands Atlas Copco’s offerings of superior bolt-
ing solutions to more customers in segments like oil and gas and power genera-
tion. Intangible assets of 16 were recorded on the purchase. 
Total consideration was 3 170. This includes deferred consideration for 
this year’s acquisitions amounting to 2 177. Of the deferred consideration, 794 
represent the fair value of a deferred contingent consideration related to the 
Henrob acquisition. The payment of the contingent consideration is depen-
dent on achieving future milestones related to targets for revenue and growth 
within three years of the acquisition, in total a maximum of MUSD 129 
(MSEK 917). The fair value has been calculated based on the expectation that 
the maximum amount will be paid out. The remaining deferred consideration 
related to Henrob was paid in January 2015. 
Mining and Rock Excavation Technique
Recognized values
2014
2013
Intangible assets
8
196
Property, plant and equipment
–6
121
Other assets
23
343
Cash and cash equivalents
33
1
Other liabilities and provisions
–15
–52
Net identifiable assets
43
609
Non-controlling interests
– 
-89 
Goodwill
13
275
Total consideration
56
795
Deferred consideration
30
–2
Cash and cash equivalents acquired
–33
–1
Net cash outflow
53
792
In February, the Mining and Rock Excavation Technique business area 
acquired Swedish Geawelltech, a former Atlas Copco distributor that sells, 
rents out and manufactures well- and geotechnical drilling equipment. Ground 
engineering is a strategic segment and the acquisition fits with the existing 
Atlas Copco product portfolio. Intangible assets of 14 and goodwill of 13  
were recorded on the purchase. The goodwill is not tax deductible. 
Construction Technique
Recognized values
2014
2013
Intangible assets
–
28
Other assets
–
22
Other liabilities and provisions
–1
 –12
Net identifiable assets
–1
38
Goodwill
1
13
Total consideration
–
51
Net cash outflow
–
51
The Construction Technique business area made no acquisitions in 2014.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
79
Divestments
No material business divestment of assets and liabilities have been done in 2014.
In 2013, the Group divested its business in Iran to a local distributor and 
in December 2013 Atlas Copco consolidated its in-house insurance operations 
and divested Atlas Copco Reinsurance SA, the Luxembourg captive company, 
with no impact on the insurance capacity.   
 
Assets held for sale 
Two buildings located in France and Sweden, amounting to 10, were reclassi-
fied to assets held for sale in 2014. Assets held for sale from previous years, 
amounting to 1, was sold during 2014.
Contribution from businesses 
acquired in 2014 and 2013 by 
business area
Compressor  
Technique
Industrial 
 Technique
Mining and Rock Excavation 
Technique
Construction 
Technique
 
Group
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
Contribution from date  
of control
 
 
 
  
 
 
 
 
 
 
Revenues
8 763
68
506
140
53
346
–
18
9 322
572
Operating profit
1 577
–10
81
7
4
–10
–
–1
1 662
–14
Profit for the year
 
 
 
 
 
 
 
 
1 282
–11
Contribution if the acquisition 
had occurred on Jan. 1
 
 
 
 
 
 
 
 
 
 
Revenues
8 972
154
1 144
346
58
487
–
63
10 174
1 050
Operating profit
1 598
–13
98
16
5
–14
–
1
1 701
–10
Profit for the year
 
 
 
 
 
 
 
 
1 327
–7
Edwards had revenues in 2014 of 8 535 and operating profit of 1 555. 
3.
Divestments and assets held for sale
Carrying value of divested assets and liabilities 
2014
2013
Other property, plant and equipment
–
1
Inventories
–
7
Receivables
–
6
Cash and cash equivalents
–
585
Other liabilities and provisions
–
–173
Net identifiable assets
–
426
Capital gain
–
87
Translation differences recycled
–
16
Cash and cash equivalents divested
–
–585
Net cash effect
–
–56
Total fair value of acquired assets and 
liabilities
Group recognized values
2014
of which 
Edwards
2013
Intangible assets
5 612
3 933
513
Property, plant and equipment
1 803
1 252
166
Other non-current assets
74
74
–
Inventories
1 333
1 013
283
Receivables*
1 426
1 254
240
Other current assets
155
148
1
Cash and cash equivalents
990
917
21
Interest-bearing loans and borrowings
–3 607
–3 300
–35
Other liabilities and provisions
–2 546
–2 177
–88
Deferred tax liabilities, net
–821
–454
–109
Net identifiable assets
4 419
2 660
992
Non-controlling interests
–
–
–89
Goodwill
7 078
5 118
617
Total consideration
11 497
7 778
1 520
Deferred consideration
–2 092
–
–7
Cash and cash equivalents acquired
–990
–917
–21
Net cash outflow
8 415
6 861
1 492
*  The gross amount is 1 459 (240) of which 33 (0) is expected to be uncollectible. 
The goodwill recognized on acquisitions is primarily related to the synergies 
expected to be achieved from integrating these companies into the Group’s 
existing structure.
The total consideration for all acquisitions was 11 497. Total consider-
ation includes deferred consideration not yet paid for acquisitions made in 
2014 and settlement of deferred consideration for acquisitions made in prior 
years. For all acquisitions, the net cash outflow totaled 8 415 after deducting 
cash and cash equivalents acquired of 990. 
Acquisition-related costs amounted to 20 (57) and were included in 
“Administrative expenses” in the income statement for 2014. Costs related to 
the Edwards acquisition that was finalized in January 2014 were included in 
the income statement for 2013.
2.
Acquisitions, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
80
Atlas Copco 2014
2014
Compressor  
Technique
Industrial  
Technique
­Mining and Rock 
Excavation Technique
Construction  
Technique
Common  
group functions
Eliminations
Group
Revenues from external customers
42 002
11 399
25 626
14 422
272
–
93 721
Inter-segment revenues
163
51
92
317
124
–747
–
Total revenues
42 165
11 450
25 718
14 739
396
–747
93 721
Operating profit 
8 974
2 557
4 307
1 768
–550
–41
17 015
– of which share of profit in associated companies
–
6
1
–
–
–
7
Net financial items
 
  
 
 
 
 
–924
Income tax expense
 
 
 
 
 
 
–3 916
Profit for the year
 
 
 
 
 
 
12 175
Non-cash expenses 
 
 
 
 
 
 
 
Depreciation/amortization
1 215
389
952
771
364
–91
3 600
Impairment 
–7
–
116
–
–
–
109
Other non-cash expenses
–141
58
7
–49
22
–
–103
Segment assets
37 837
13 207
19 848
17 623
4 245
–2 697
90 063
– of which goodwill
9 343
3 989
1 481
5 107
–
–
19 920
Investments in associated companies
1
100
14
–
–
–
115
Unallocated assets
 
 
 
 
 
 
15 103
Total assets
 
 
 
 
 
 
105 281
Segment liabilities
11 695
3 104
4 938
2 751
3 858
–2 366
23 980
Unallocated liabilities
 
 
 
 
 
 
30 548
Total liabilities
 
 
 
 
 
 
54 528
Capital expenditures
 
 
 
  
 
 
 
Property, plant and equipment
647
272
1 000
942
578
–126
3 313
– of which assets leased
8
2
33
3
–
–
46
Intangible assets
296
163
416
182
130
–
1 187
Total capital expenditures
943
435
1 416
1 124
708
–126
4 500
Goodwill acquired 
5 257
1 807
13
1
–
–
7 078
2013
Compressor  
Technique
Industrial  
Technique
­Mining and Rock 
Excavation Technique
Construction  
Technique
Common  
group functions
Eliminations
Group
Revenues from external customers
31 741
9 463
28 981
13 486
217
–
83 888
Inter-segment revenues
41
38
32
481
84
–676
0
Total revenues
31 782
9 501
29 013
13 967
301
–676
83 888
Operating profit 
7 279
2 138
6 083
1 733
–131
–46
17 056
– of which share of profit in associated companies
 
4
3
 
 
 
7
Net financial items
 
 
 
 
   
  
–790
Income tax expense
 
 
  
  
 
  
–4 184
Profit for the year
 
 
 
 
 
 
12 082
Non-cash expenses 
 
 
 
 
 
 
 
Depreciation/amortization
695
263
839
613
342
–65
2 687
Impairment 
5
–
7
4
–
–
16
Other non-cash expenses
–14
30
–60
–1
–115
–
–160
Segment assets
19 729
7 544
19 325
16 588
3 834
–2 274
64 746
– of which goodwill
2 629
1 836
1 317
5 056
–
–
10 838
Investments in associated companies
1
88
12
–
–
–
101
Unallocated assets
 
 
 
 
 
 
23 044
Total assets
 
 
 
 
 
 
87 891
Segment liabilities
8 505
1 960
4 613
2 447
2 372
–1 263
18 634
Unallocated liabilities
 
 
 
 
 
 
29 463
Total liabilities
 
 
 
 
 
 
48 097
Capital expenditures
 
 
  
 
 
 
 
Property, plant and equipment
305
123
941
969
585
–165
2 758
– of which assets leased
6
2
29
10
–
–
47
Intangible assets
140
75
427
158
209
–
1 009
Total capital expenditures
445
198
1 368
1 127
794
–165
3 767
Goodwill acquired 
21
308
275
13
–
–
617
2013 has been restated due to the move of the  Portable Energy  division from Compressor Technique to Construction Technique.  
4.
Segment information

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
81
The Group is organized in separate and focused but still integrated business 
areas, each operating through divisions. The business areas offer different 
products and services to different customer groups. They are also the basis for 
management and internal reporting and are regularly reviewed by the  Group’s 
President and CEO, the chief operating decision maker. All business areas are 
managed on a worldwide basis and their role is to develop, implement and  
follow up the objectives and strategies within their respective business. For a 
description of the business areas, see pages 20–35. 
Common group functions, i.e. functions which serve all business areas  
or the Group as a whole, is not considered a segment.
The accounting principles for the segments are the same as those 
described in note 1. Atlas Copco’s inter-segment pricing is determined on  
a commercial basis.
Segment assets are comprised of property, plant and equipment,  
intangible assets, other non-current receivables, inventories, and current  
receivables. 
Segment liabilities include the sum of non-interest-bearing liabilities such as 
operating liabilities, other provisions, and other non-current liabilities. Capital 
expenditure includes property, plant and equipment, and intangible assets, but 
excludes the effect of goodwill, intangible assets and property, plant and equip-
ment through acquisitions.
REVENUES FROM EXTERNAL CUSTOMERS
0
10 000
20 000
30 000
40 000
50 000
60 000
2013
2014
MSEK
Equipment
Service (incl. spare parts, 
consumables, accessories 
and rental)
Geographical information
The revenues presented are based on the location of the customers while non-
current assets are based on the geographical location of the assets. These assets 
include non-current assets other than financial instruments, investments in 
associated companies, deferred tax assets, and post-employment benefit assets.   
By geographic  
area/country
Revenues
Non-current assets
2014
2013
2014
2013
North America
 
 
 
 
Canada
3 282
3 217
331
261
U.S.A.
15 778
11 268
7 567
4 286
Other countries
2 143
2 215
129
105
 
21 203
16 700
8 027
4 652
South America
 
 
 
 
Brazil
3 727
3 783
392
327
Chile
1 821
2 058
121
111
Other countries
2 552
2 677
69
51
 
8 100
8 518
582
489
Europe
 
 
 
 
Belgium
811
743
1 948
1 654
France
2 625
2 469
244
243
Germany
4 673
3 854
3 172
3 034
Italy 
  1 728
1 533
996
969
Russia
2 783
3 283
96
156
Sweden
1 939
1 910
9 815
9 507
United Kingdom
2 886
1 873
13 691
715
Other countries 
11 434
9 804
1 398
1 182
 
28 879
25 469
31 360
17 460
Africa/Middle East
 
 
 
 
South Africa
2 425
2 591
213
162
Other countries
6 812
6 883
362
256
 
9 237
9 474
575
418
Asia/Australia
 
 
 
 
Australia
3 851
4 986
433
317
China
11 536
9 724
2 827
2 186
India
2 750
2 887
573
505
Other countries
8 165
6 130
1 430
579
 
26 302
23 727
5 263
3 587
 Total
93 721
83 888
45 807
26 606
4.
Segment information, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
82
Atlas Copco 2014
Females in the Board of Directors  
and Group Management, %
Dec. 31, 
2014
Dec. 31, 
2013
Parent Company
 
 
Board of Directors excl. union representatives 
33
30
Group Management
22
22
Average number  
of employees
2014
2013
Women
Men
Total
Women
Men
Total
Parent Company
 
 
 
 
 
 
Sweden
61
56
117
60
49
109
Subsidiaries
 
 
 
 
 
 
North America
1 005
5 303
6 308
912
4 877
5 789
South America
515
2 749
3 264
461
2 757
3 218
Europe
3 122
15 233
18 355
2 883
13 997
16 880
– of which Sweden
734
3 464
4 198
768
3 620
4 388
Africa/Middle East
404
2 285
2 689
408
2 311
2 719
Asia/Australia
2 374
10 538
12 912
2 021
9 423
11 444
Total in subsidiaries
7 420
36 108
43 528
6 685
33 365
40 050
Total
7 481
36 164
43 645
6 745
33 414
40 159
Quarterly data
Revenues by business area
2014
2013
MSEK
1
2
3
4
1
2
3
4
Compressor Technique
9 409
10 353
10 718
11 685
 7 382    
 8 037    
 7 816    
 8 546    
– of which external 
9 361
10 307
10 682
11 653
 7 367   
 8 020    
 7 815    
 8 538    
– of which internal
48
46
36
32
 15    
 17    
 1    
 8    
Industrial Technique
2 505
2 650
2 827
3 468
 2 183    
 2 243    
 2 383    
 2 692    
– of which external
2 493
2 636
2 816
3 454
 2 177    
 2 233    
 2 374    
 2 679    
– of which internal
12
14
11
14
 6    
 10    
 9    
 13    
Mining and Rock Excavation Technique
6 251
6 396
6 449
6 622
 7 562    
 7 857    
 6 885    
 6 709    
– of which external
6 237
6 373
6 398
6 618
 7 545    
 7 851    
 6 882    
 6 704    
– of which internal
14
23
51
4
 17    
 6    
 3    
 5    
Construction Technique 
3 354
4 068
3 692
3 625
 3 173    
 3 850    
 3 495    
 3 449    
– of which external
3 272
3 971
3 621
3 558
 3 071    
 3 706    
 3 385    
 3 324    
– of which internal
82
97
71
67
 102    
 144    
 110    
 125    
Common Group functions/eliminations 
–96
–119
–96
–40
–73    
–144    
–27    
–130    
 Total
21 423
23 348
23 590
25 360
 20 227    
 21 843    
 20 552    
 21 266    
Operating profit by business area
2014
2013
MSEK
1
2
3
4
1
2
3
4
Compressor Technique
1 915
2 219
2 369
2 471
 1 671    
 1 834    
 1 826    
 1 948    
in % of revenues
20.4
21.4
22.1
21.1
22.6
22.8
23.4
22.8
Industrial Technique
543
595
636
783
 487    
 482    
 548    
 621    
in % of revenues
21.7
22.5
22.5
22.6
22.3
21.5
23.0
23.1
Mining and Rock Excavation Technique
1 071
1 155
856
1 225
 1 771    
 1 738    
 1 384    
 1 190    
in % of revenues
17.1
18.1
13.3
18.5
23.4
22.1
20.1
17.7
Construction Technique
406
545
422
395
 384    
 511    
 454    
 384    
in % of revenues
12.1
13.4
11.4
10.9
12.1
13.3
13.0
11.1
Common Group functions/eliminations
–175
–175
–138
–103
–157    
–32   
0   
 12    
Operating profit
3 760
4 339
4 145
4 771
 4 156    
 4 533    
 4 212    
 4 155    
in % of revenues
17.6
18.6
17.6
18.8
20.5
20.8
20.5
19.5
Net financial items
–158
–165
–266
–335
–111    
–254    
–195    
–230    
Profit before tax
3 602
4 174
3 879
4 436
 4 045    
 4 279    
 4 017    
 3 925    
in % of revenues
16.8
17.9
16.4
17.5
20.0
19.6
19.5
18.5
5.
Employees and personnel expenses
4.
Segment information, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
83
5.
Employees and personnel expenses, continued
Remuneration and other benefits
Group
MSEK
2014
2013
Salaries and other remuneration
16 679
14 565
Contractual pension benefits
941
907
Other social costs
3 206
2 802
Total 
20 826
18 274
Pension obligations to Board members and Group Management 1)
15
14
1) Refers to former members of Group Management.
Remuneration and other benefits to the Board 
KSEK
Fee
Value of  
synthetic 
shares at  
grant date
Number of 
shares at  
grant date
Other  
fees 1)
Total fees  
incl. value  
of synthetic 
shares at  
grant date 2014
Adj. due to 
change in  
stock price  
and vesting  
period 2)
Total  
expense 
recognized  
2014 3)
Total 
expense  
recognized 
2013 
Chairman:
 
 
 
  
 
 
 
 
Sune Carlsson (left April 2014)
463
–
–
–
463
809
1 272
2 025
Hans Stråberg (Vice Chairman 2013,  
new Chairman April 2014)
806
950
4 975
234
1 990
63
2 053
667
Other members of the Board:
 
 
 
 
 
 
 
 
Ulla Litzén 4)
744
–
–
366
1 110
165
1 275
958
Anders Ullberg 
566
–
–
120
686
165
851
640
Staffan Bohman 4)
744
–
–
189
933
250
1 183
887
Margareth Övrum
283
285
1 492
–
568
433
1 001
618
Johan Forsell
283
285
1 492
144
712
433
1 145
743
Gunilla Nordström
283
285
1 492
–
568
288
856
580
Peter Wallenberg Jr
283
285
1 492
60
628
191
819
640
Other members of the Board previous year
–
–
–
–
–
–
–
–78
Union representatives (4 pers)
44
–
–
–
44
–
44
34
Total 2014
4 499
2 090
10 943
1 113
7 702
2 797
10 499
 
Total 2013
5 171
1 483
8 638
800
7 454
259
 
7 713
1) 	Refers to fees for membership in board committees.
2) 	Refers to synthetic shares received in 2009–2014. 
3) 	Provision for synthetic shares as at December 31, 2014 amounted to MSEK 13 (13).
4) 	Ulla Litzén and Staffan Bohman invoiced their fees. The fees received include compensation for social costs.
Remuneration and other benefits  
to Group Management 
KSEK
Base  
salary
Variable  
compensation 1) 
Other  
benefits 2)
Pension 
fees
Total, excl.  
recognized 
costs for  
share based 
payments
Recognized 
costs for  
share based 
payments 3)
Total  
expense  
recognized 
2014
Total  
expense  
recognized 
2013
President and CEO
 
 
 
 
 
 
 
 
Ronnie Leten 
12 000
6 592 4)
1 803
4 200
24 595
5 599
30 194
19 612
Other members of Group  
Management (8 positions) 
22 760
9 537
18 828 5)
7 274
58 399
11 248
69 647
45 070
 Total 2014
34 760
16 129
20 631
11 474
82 994
16 847
99 841
 
Total 2013
32 957
10 114
5 388
10 486
58 945
5 737
 
64 682
Total remuneration and other benefits  
to the Board and Group Management
 
 
 
 
 
 
110 340
72 395
1)	Refers to variable compensation earned in 2014 to be paid in 2015.
2)	Refers to vacation pay, company car, medical insurance, and other benefits.	
3)	Refers to stock options and SARs received in 2009–2014 and includes recognized costs due to change in stock price and vesting period, see also note 23.
4)	The CEO has exercised the option to receive his Variable Compensation for 2013, paid in 2014, as an additional pension contribution.	
5)	Includes one-time cost due to changes in Group Management.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
84
Atlas Copco 2014
Remuneration and other fees for members of the Board, the President  
and CEO, and other members of Group Management
Principles for remuneration to the Board and Group Management
The principles for remuneration to the Board and Group Management 
are approved at the Annual General Meeting of the shareholders. The 
principles approved by the 2014 meeting are described in the following  
paragraphs.
Board members
Remuneration and fees are based on the work performed by the Board. The 
remuneration and fees approved for 2014 are detailed in the table on the previ-
ous page. The remuneration to the President and CEO, who is a member of 
Group Management, is described in the following sections.
The Annual General Meeting decided that each board member can elect 
to receive 50% of the 2014 gross fee before tax, excluding other committee fees, 
in the form of synthetic shares and the remaining part in cash. The number of 
synthetic shares is based upon an average end price of series A shares during 
ten trading days following the release of the first quarterly interim report for 
2014. The share rights are earned 25% per quarter as long as the member 
remains on the Board. After five years, the synthetic shares give the right to 
receive a cash payment per synthetic share based upon an average price for 
series A shares during 10 trading days following the release of the first quar-
terly interim report of the year of payment. The board members will receive 
dividends on series A shares until payment date in the form of new synthetic 
shares. If a board member resigns his or her position before the stipulated pay-
ment date as stated above, the board member has the right to request a prepay-
ment. The prepayment will be made twelve months after the date from when 
the board member resigned or otherwise the original payment date is valid.
Five  board members accepted the right to receive synthetic shares. The 
number and costs at grant date and at the end of the financial year are  
disclosed by board member in the table on the previous page.
Group Management
Group Management consists of the Group President and eight other members 
of the Executive Comittee. The compensation to Group Management shall 
consist of base salary, variable compensation, possible long term incentive 
(personnel options), pension premium, and other benefits. 
The following describes the various guidelines in determining the amount  
of remuneration:
•  	 Base salary is determined by position, qualification, and individual  
performance. 
•  	 Variable compensation is dependent upon how certain quantitative and 
qualitative goals set in advance are achieved. The variable compensation  
is maximized to 70% of the base salary for the Group President, 50%  
for Business Area Presidents, and 40% for other members of Group  
Management. 
•  	 Performance related personnel option program for 2014, see note 23.
•  	 Pension premiums are paid in accordance with a defined contribution  
plan with premiums ranging between 25 and 35% of base salary depending 
on age.
•  	 Other benefits consist of company car and private health insurance.
•	 For the expatriates, certain benefits are paid in compliance with the  
Atlas Copco terms and conditions for expatriate employment. 
•	 A mutual notice of termination of employment of six months shall apply. 
The Board has the right to deviate from the principles stated above if 
special circumstances exist in a certain case. No fees are paid to Group
Management for board memberships in Group companies nor do they
receive compensation for other duties that they may perform outside the
immediate scope of their duties.
President and CEO
The variable compensation can give a maximum of 70% of the base salary. The 
variable compensation is not included in the basis for pension benefits. Accord-
ing to an agreement, the President and CEO has the option to receive variable 
compensation in the form of cash payment or as a pension contribution.
The President and CEO is a member of the Atlas Copco Airpower N.V. 
pension plan and the contributions follow the Atlas Copco pension policy for 
Swedish executives, which is a defined contribution plan. The President and 
CEO is entitled to retire at the age of 60. The contribution is age related and is 
35% of the base salary and includes provisions for a survivors’ pension. These 
pension plans are vested and are lifetime payments upon retirement. 
 
5.
Employees and personnel expenses, continued
Other members of Group Management
Members of Group Management employed in Sweden have a defined 
contribution pension plan, with contribution ranging from 25% to 35% 
of the base salary according to age. The variable compensation is not included 
in the basis for pension benefits. Members of Group Management not based in 
Sweden also have a defined contribution pension plan. These pension plans are 
vested and are lifetime payments upon retirement. The retirement age is 65.
Option/share appreciation rights, holdings for Group Management 
The stock options/share appreciation rights holdings as at 
December 31 are detailed below:
Stock Options/share appreciations rights holdings as at Dec. 31, 2014
Grant Year
CEO
Other members of  
Group Management
2009
–
–
2010
–
72 620
2011
93 175
157 203
2012
109 383
254 366
2013
5 471
11 906
2014 1)
118 187 
254 412 
 Total
326 216 
750 507 
1) Estimated grants for the 2014 stock option program including matching shares.
See note 23 for additional information.
Termination of employment
The CEO is entitled to a severance pay of twelve months if the Company  
terminates the employment and a further twelve months if other employment 
is not available. 
Other members of Group Management are entitled to severance pay if  
the Company terminates their employment. The amount of severance pay is 
dependent on the length of employment with the Company and the age of  
the executive, but is never less than twelve months and never more than 24  
months’ salary.
Any income that the executive receives from employment or other busi-
ness activity, whilst severance pay is being paid, will reduce the amount of  
severance pay accordingly. 
Severance pay for the CEO and other members of Group Management is 
calculated only on the base salary and does not include variable compensation. 
Severance pay cannot be elected by the employee, but will only be paid if 
employment is terminated by the Company.
Remuneration and other committees
In 2014, the Chairman of the Board, Hans Stråberg and Board Members  
Peter Wallenberg Jr and Anders Ullberg were members of the remuneration 
committee. The committee proposed compensation to the President and  
CEO for approval by the Board. The committee also supported the President 
and CEO in determining the compensation to the other members of Group 
Management. 
Ulla Litzén, Chair, Staffan Bohman, Johan Forsell and Hans Stråberg 
formed the Audit Committee.
In addition, Anders Ullberg, Chair, Ulla Litzén and Hans Stråberg parti­
cipated in a committee regarding repurchase and sale of Atlas Copco shares. 
 
Deviation from by the general meeting approved principles for remuneration  
to Group Management 
In 2014 a deviation has been made from the principles for remuneration to 
Group Management. In connection with the mutual consent termination of  
a member of Group Management, it was agreed that the 18 months’ severance 
payment should not be reduced with income from new employment, which is a 
deviation from the approved principles. Due to certain aspects of the law appli-
cable to the employment contract it was considered favorable for Atlas Copco 
to make this deviation including a legally enforceable non-compete obligation.
Proposed change in the guidelines for remuneration to Group Management
The Board of Directors will propose to the Annual General Meeting 2015 a 
change in the guidelines for remuneration to Group Management on the  
following: 
•  	 Variable compensation is dependent upon how certain quantitative and 
qualitative goals set in advance are achieved. The variable compensation  
is maximized to 80% of the base salary for the Group President, 60%  
for Business Area Presidents, and 50% for other members of Group  
Management.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
85
6.
Remuneration to auditors
Audit fees and other services
2014
2013
Deloitte	
 
 
Audit fee
58
52
Audit activities other than the audit assignment
1
1
Other services, tax
6
7
Other services, other
4
5
Other audit firms
 
 
Audit fee
6
2
 Total
75
67
Audit fee refers to audit of the financial statements and the accounting 
records. For the Parent Company this also includes the administration of  
the business by the Board of Directors, the President and CEO. 
Audit activities other than the audit assignment refer for example  
to comfort letters and the limited assurance report on Atlas Copco’s  
sustainability report. 
Tax services include both tax consultancy services and tax compliance  
services. 
Other services essentially comprise consultancy services, such as  
due-­diligence services in connection with acquisitions. 
At the Annual Genereral Meeting 2014, Deloitte was elected as auditor 
for the Group until the Annual General Meeting 2015.
7.
Other operating income and expenses
Other operating income
2014
2013
Commissions received
15
22
Income from insurance operations
151
171
Capital gain on sale of fixed assets
23
21
Capital gain on divestment of business
–
87
Exchange-rate differences
213
–
Other operating income
171
213
 Total
573
514
 
Other operating expenses
2014
2013
Capital loss on sale of fixed assets
–27
–8
Exchange-rate differences, net
–
–248
Other operating expenses
–164
–75
 Total
–191
–331
The operating profit includes 62 (127) of realized foreign exchange  
hedging result, which were previously recognized in equity.
Workforce profile
Atlas Copco strives to grow local leaders where it operates. The geo­graphical 
spread of employees and senior managers is in continuous development. As a 
customer-focused company, 50% of all employees work in marketing, sales or 
service.
Geographical spread  
of employees, %
Employees
Nationality of 
senior managers
North America
15
8
South America
7
3
Europe
42
69
Africa/Middle East
6
6
Asia/Australia
29
14
Total
100
100
Employees by professional category, %
2014
2013
Production 
27
28
Marketing
8
8
Sales and support
13
13
Service
29
29
Administration
16
16
Research & development
7
6
Total
100
100
5.
Employees and personnel expenses, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
86
Atlas Copco 2014
9.
Taxes
Income tax expense
2014
2013
Current taxes
–4 169
–4 286
Deferred taxes
253
102
 Total
–3 916
–4 184
The following is a reconciliation of the companies’ weighted average tax based 
on the national tax for the country as compared to the actual tax charge:
2014
2013
Profit before tax
16 091
16 266
Weighted average tax based on national rates
–4 624
–4 696
– in %
28.7
28.9
Tax effect of:
 
 
Non–deductible expenses
–430
–408
Withholding tax on dividends
–49
–172
Tax–exempt income 
1 420
1 304
Adjustments from prior years:
 
 
– current taxes
–100
–243
– deferred taxes
–89
74
Effects of tax losses/credits utilized
15
7
Change in tax rate, deferred tax
–6
7
Tax losses not valued 
–47
–33
Other items
–6
–24
Income tax expense
–3 916
–4 184
Effective tax in %
24.3
25.7
The effective tax rate was 24.3% (25.7). Withholding tax on dividends of –49 
(–172) relates to provisions on profits in countries where Atlas Copco incurs 
withholding taxes on repatriation of income. Tax-exempt income of 1 420 
(1 304) refers to income that is not subject to taxation or subject to reduced 
taxation under local law in various countries. The net from tax issues and  
disputes in different countries amounted to –100 (–243). 
Previously unrecognized tax losses/credits and deductible temporary  
differences, which have been recognized against current tax expense, amounted 
to 15 (7). No material unrecognized tax losses/credits or temporary difference 
have been used to reduce deferred tax expense. 
The following table reconciles the net liability balance of deferred taxes at the 
beginning of the year to the net liability at the end of the year:
Change in deferred taxes
2014
2013
Opening Net balance, Jan. 1
–66
–416
Business acquisitions
–821
–109
Divestment, discontinued operations
–
161
Charges to profit for the year
253
102
Tax on amounts recorded to equity
1 011
236
Translation differences
45
–40
Net balance, Dec. 31
422
–66
8.
Financial income and expenses
Financial income and expenses
2014
2013
Interest income
 
 
– cash and cash equivalents
142
156 
– finance lease receivables
169
196  
– other
2
9 
Capital gain
 
 
– other assets
–
12 
Change in fair value – other assets
–
21 
Financial income
313
 394 
Interest expense
 
 
– borrowings
–897
–829
– derivatives for fair value hedges
–69
–191 
– pension provisions, net
–46
–71 
Capital loss
 
 
– other assets
–16
–
Change in fair value – other liabilities  
and borrowings
–42
– 
Foreign exchange loss, net
–161
–76  
Impairment loss
–6
–17
Financial expenses
–1 237
–1 184 
Financial expenses, net
–924
–790 
“Foreign exchange loss, net” includes foreign exchange gains of 98 (1 235) on 
financial assets at fair value through profit and loss and foreign exchange 
losses of 259 (1 311) on other liabilities. 
See note 27 for additional information.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
87
9.
Taxes, continued
The deferred tax assets and liabilities recognized in the balance sheet are attributable to the following:
Deferred tax assets and liabilities
2014
2013
Assets
Liabilities
Net balance
Assets
Liabilities
Net balance
Intangible assets
119
2 360
–2 241
31
931
–900
Property, plant and equipment
361
755
–394
290
649
–359
Other financial assets
23
26
–3
6
8
–2
Inventories
1 618
43
1 575
1 562
47
1 515
Current receivables
256
224
32
197
277
–80
Operating liabilities
736
53
683
495
133
362
Provisions
457
5
452
265
1
264
Post–employment benefits 
645
6
639
350
–
350
Borrowings
265
–
265
12
601
–589
Loss/credit carry-forwards
220
–
220
184
–
184
Other items 1)
13
819
–806
4
815
–811
Deferred tax assets/liabilities
4 713
4 291
422
3 396
3 462
–66
Netting of assets/liabilities
–3 164
–3 164
–
–2 435
–2 435
–
Net deferred tax balances
1 549
1 127
422
961
1 027
–66
1) Other items primarily include tax deductions which are not related to specific balance sheet items.
Deferred tax assets regarding tax loss carry-forwards are reported to the extent 
that realization of the related tax benefit through future taxable results is prob-
able. At December 31, the Group had total tax loss carry-forwards of 4 079 
(3 347), of which deferred tax assets were recognized for 861 (729). The tax 
value of reported tax loss carry-forwards totals 220 (184). There is no expira-
tion date for utilization of the major part of the tax losses carry-forwards for 
which deferred tax assets have been recognized. An important part of tax loss 
carry-forwards for which no deferred tax assets have been recognized have no 
expiration date.
10.
Other comprehensive income
Other comprehensive income for the year
2014
2013
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
 
 
 
 
  
 
Remeasurments of defined benefit plans
–759
194
–565
45 
  –18
27 
Items that may be reclassified subsequently to profit or loss
 
 
 
 
 
 
Translation differences on foreign operations
5 661
449
6 110
447 
241 
688 
– realized and reclassified to income statement
–
– 
–
16 
– 
16 
Hedge of net investments in foreign operations
–1 052
231
–821
  –712
 157 
–555 
Cash flow hedges
–199
31
–168
–31 
12 
 –19
Adjustment for amounts transferred to the initial carrying 
amounts of acquired operations
81
–
81
– 
–
–
Total other comprehensive income
3 732
905
4 637
 –235
392 
157
Attributable to non-controlling interests
 
 
 
 
 
 
Translation differences on foreign operations
26
–
26
–3 
  –
–3 
Total other comprehensive income 
3 758
905
4 663
–238 
 392
154 
Changes in temporary differences during the year that are recognized in the 
income statement are attributable to the following:
2014
2013
Intangible assets
–21
–20
Property, plant and equipment
23
–86
Other financial assets
–13
38
Inventories
–153
16
Current receivables
64
–80
Operating liabilities
159
–65
Provisions
11
–10
Post-employment benefits
46
18
Borrowings
86
–13
Other items
55
328
Changes due to temporary differences
257
126
Loss/credit carry-forwards
–4
–24
Charges to profit for the year
253
102

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
88
Atlas Copco 2014
Impairment tests for cash-generating units with goodwill and for intangible 
assets with indefinite useful lives
Impairment tests (including sensitivity analyses) are performed as per  
September 30 each year.  
Current goodwill is monitored for internal management purposes at busi-
ness area level. The goodwill has therefore been tested for impairment at busi-
ness area level except as stated below. 
Businesses acquired in 2014 as well as those in previous years, and their 
related cash flows, have in most cases been integrated with other Atlas Copco 
operations soon after the acquisition. In instances where the acquired business 
would not be integrated or has not yet been integrated and hence be monitored 
separately, the associated goodwill is tested for impairment separately. Atlas 
Copco acquired Edwards Group January 9, 2014. Goodwill and intangible 
assets have been included in the Compressor Technique values, and this year 
their values have been tested separately.
The recoverable amounts of the cash generating units have been calcu-
lated as value in use based on management’s five-year forecast for net cash 
flows where the most significant assumptions are revenues, operating  
profits, working capital, and capital expenditures.  
All assumptions for the five-year forecast are estimated individually for 
each of the business areas based on their particular market position and the 
characteristics and development of their end markets. The forecasts represent 
management’s assessment and are based on both external and internal sources. 
The perpetual growth for the period after five years is estimated at 3%. The 
Group’s average weighted cost of capital in 2014 was 8% (8) after tax (approxi-
mately 10.5% (10.5) before tax) and has been used in discounting the cash 
flows to determine the recoverable amounts. 
The following table presents the carrying value of goodwill and trade-
marks with indefinite useful lives allocated by business area. 
Carrying value of goodwill and intangible assets with indefinite useful lives by 
cash generating unit
2014
2013
Trademarks
Goodwill
Trademarks
Goodwill
Compressor Technique
1 098
9 343
–
2 629
Industrial Technique
–
3 989
–
1 836
Mining and Rock 
Excavation Technique
–
1 481
–
1 317
Construction Technique
1 225
5 107
1 225
5 056
Total
2 323
19 920
1 225
10 838
The trade names of Edwards in the Atlas Copco Vacuum Solutions division 
and Dynapac in the Road Construction Equipment division represent strong 
trade names that have been used for a long time in their industries. Manage-
ment’s intention is that these trade names will be used indefinitely.
Amortization and impairment of intangible assets are recognized in the  
following line items in the income statement:
2014
2013
Internally 
generated
Acquired
Internally 
generated
Acquired
Cost of sales
16
32
17
37
Marketing expenses
16
458
11
280
Administrative  
expenses
53
43
33
24
Research and 
­development expenses
420
266
313
98
Other operating 
expenses
– 
7 
– 
– 
Total 
505
806
374
439
Impairment charges on intangible assets totaled 106 (12) of which 76 (12) were 
classified as research and development expenses in the income statement, 23 (0) 
were classified as marketing expenses and 7 (0) as other operating expenses. Of 
the impairment charges, 57 (12) were due to capitalized development costs 
relating to projects discontinued. The impairment charges of 45 (0) related to 
trademark, marketing and customer related intangibles and other technology 
and contract based intangibles were mainly related to recent acquisitions in the 
Mining and Rock Excavation Technique business area.
12.
Intangible assets
11.
Earnings per share
Amounts in SEK
Basic earnings per share
Diluted earnings per share
2014
2013
2014
2013
Earnings per share
10.01
9.95
 
9.99
9.92
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
2014
2013
Profit for the year
12 169
12 072 
Average number of shares outstanding
2014
2013
Basic weighted average number of shares outstanding 
 
1 215 605 904
1 212 768 391
Effect of employee stock options 
 
988 378
1 392 042
Diluted weighted average number of shares outstanding 
 
1 216 594 282
1 214 160 433
Potentially dilutive instruments 
As of December 31, 2014, Atlas Copco had six outstanding employee stock option programs, of which the exercise price for the 2012 and 2014 programs exceeded 
the average share price for series A shares, SEK 196 per share. These programs are, therefore, considered anti-dilutive and are not included in the calculation of 
diluted earnings per share. If the average share price exceeds the strike price in the future, these options will be dilutive.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
89
12.
Intangible assets, continued
Internally generated  
intangible assets
 
 Acquired intangible assets
2014
Product 
­development
Other technology 
and contract based
Product 
development
Trademark
Marketing and 
customer related
Other technology 
and contract based
Goodwill
Total
Cost
 
 
 
 
  
 
 
 
Opening balance, Jan. 1
4 604
972
67
2 421
2 202
1 705
10 865
22 836
Investments
769
250
30
–
–
138
–
1 187
Business acquisitions
–
–
–
1 010
2 291
2 311
7 078
12 690
Disposals
–132
–10
–
–29
–1
–46
–
–218
Reclassifications
–
–4
–
1
–1
2
–
–2
Translation differences
244
70
–1
339
666
548
2 014
3 880
Closing balance, Dec. 31
5 485
1 278
96
3 742
5 157
4 658
19 957
40 373
Amortization and impairment losses 
 
 
 
 
 
 
 
Opening balance, Jan. 1
2 634
441
61
471
1 111
812
27
5 557
Amortization for the period 
383
65
6
107
339
305
–
1 205
Impairment charge for the period 
57
–
–3
20
4
21
7
106
Disposals
–119
–9
–
–29
–1
–45
–
–203
Reclassifications
4
13
–4
–
–1
–10
–
2
Translation differences
135
27
–1
62
174
109
3
509
Closing balance, Dec. 31
3 094
537
59
631
1 626
1 192
37
7 176
Carrying amounts
 
 
 
  
 
 
 
 
At Jan. 1
1 970
531
6
1 950
1 091
893
10 838
17 279
At Dec. 31
2 391
741
37
3 111
3 531
3 466
19 920
33 197
Internally generated  
intangible assets
 
 Acquired intangible assets
2013
Product 
­development
Other technology 
and contract based
Product 
development
Trademark
Marketing and 
customer related
Other technology 
and contract based
Goodwill
Total
Cost
 
 
 
 
  
 
 
 
Opening balance, Jan. 1
3 880
692
64
2 293
1 941
1 539
10 206
20 615
Investments
702
231
2
–
–
74
–
1 009
Business acquisitions
–
–
–
125
254
135
617
1 131
Disposals
–39
–5
–
–
–
–22
–
–66
Reclassifications
–
39
1
–
–1
–38
–
1
Translation differences
61
15
–
3
8
17
42
146
Closing balance, Dec. 31
4 604
972
67
2 421
2 202
1 705
10 865
22 836
Amortization and impairment losses 
 
 
 
 
  
 
 
Opening balance, Jan. 1
2 300
352
57
375
916
710
26
4 736
Amortization for the period
308
54
–2
95
187
159
–
801
Impairment charge for the period
12
–
–
–
–
–
–
12
Disposals
–28
–3
–
–
–
–22
–
–53
Reclassifications
–6
36
6
–
–
–36
–
–
Translation differences 
48
2
–
1
8
1
1
61
Closing balance, Dec. 31
2 634
441
61
471
1 111
812
27
5 557
Carrying amounts
 
 
 
 
 
  
 
 
At Jan. 1
1 580
340
7
1 918
1 025
829
10 180
15 879
At Dec. 31
1 970
531
6
1 950
1 091
893
10 838
17 279
For information regarding 
amortization and impairment 
principles, see note 1. 
See note 2 for information on 
business acquisitions.
Other technology and contract based intangible assets include computer  
software, patents, and contract based rights such as licenses and franchise 
agreements. All intangible assets other than goodwill and trademarks  
with indefinite useful lives are amortized.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
90
Atlas Copco 2014
13.
Property, plant and equipment
2014
Buildings  
and land
Machinery and 
equipment
Construction  
in progress  
and advances
Total
Rental 
equipment
Cost
 
 
 
 
 
Opening balance, Jan. 1
4 538
11 772
449
16 759
4 707
Investments
185
831
573
1 589
1 724
Business acquisitions
779
770
251
1 800
3
Divestments
–7
–
–12
–19
–
Disposals
–48
–1 012
–
–1 060
–651
Reclassifications 
187
399
–642
–56
–341
Translation differences
539
979
55
1 573
571
Closing balance, Dec. 31
6 173
13 739
674
20 586
6 013
Depreciation and impairment losses
 
 
 
 
 
Opening balance, Jan. 1
1 936
7 916
–
9 852
2 287
Depreciation for the period
226
1 277
–
1 503
892
Impairment charge for the period
–
3
–
3
–
Disposals
–36
–940
–
–976
–390
Reclassifications 
58
–70
–
–12
–224
Translation differences
192
591
–
783
271
Closing balance, Dec. 31
2 376
8 777
–
11 153
2 836
Carrying amounts
 
 
 
 
 
At Jan. 1
2 602
3 856
449
6 907
2 420
At Dec. 31
3 797
4 962
674
9 433
3 177
2013
Buildings  
and land
Machinery and 
equipment
Construction  
in progress  
and advances
Total
Rental 
equipment
Cost
 
 
 
 
 
Opening balance, Jan. 1
4 291
10 694
857
15 842
4 257
Investments
88
766
443
1 297
1 461
Business acquisitions
47
93
–
140
92
Divestments
–
–8
–
–8
–
Disposals
–51
–380
–
–431
–625
Reclassifications 
186
632
–848
–30
–336
Translation differences
–23
–25
–3
–51
–142
Closing balance, Dec. 31
4 538
11 772
449
16 759
4 707
Depreciation and impairment losses
 
 
 
 
 
Opening balance, Jan. 1
1 770
7 226
–
8 996
2 227
Depreciation for the period
183
1 008
–
1 191
695
Impairment charge for the period
–
4
–
4
–
Business acquisitions
11
28
–
39
27
Divestments
–
–7
–
–7
–
Disposals
–41
–338
–
–379
–354
Reclassifications 
5
–8
–
–3
–239
Translation differences
8
3
–
11
–69
Closing balance, Dec. 31
1 936
7 916
–
9 852
2 287
Carrying amounts
 
 
 
 
 
At Jan. 1
2 521
3 468
857
6 846
2 030
At Dec. 31
2 602
3 856
449
6 907
2 420
For information regarding 
depreciation, see note 1.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
91
Accumulated capital participation
2014
2013
Opening balance, Jan. 1
101
107
Acquisitions of associated companies
–
1
Dividends
–3
–1
Profit for the year after income tax
7
7
Translation differences
10
–13
Closing balance, Dec. 31
115
101
Summary of financial information for associated companies
Country
Assets
Liabilities
Equity
Revenues
Profit for  
the year
Group’s 
share, % 1)
2014
 
 
 
 
 
 
 
Qingdao Qianshao Pneumatic Tool Manufacturing Tech Ltd.
China
65
14
51
45
–1
25
Shenzen Nectar Engineering & Equipment Co. Ltd.
China
90
30
60
89
3
25
Yanggu Wuyue Special Steel Co.Ltd.
China
827
970
–143
109
–80
25
Toku-Hanbai Group
Japan
327
151
176
631
13
50
Reintube S.L.
Spain
8
6
2
14
–
47
2013
 
 
 
 
 
 
 
Qingdao Qianshao Pneumatic Tool Manufacturing Tech Ltd.
China
50
6
44
36
–1
25
Shenzen Nectar Engineering & Equipment Co. Ltd.
China
109
53
56
138
16
25
Yanggu Wuyue Special Steel Co.Ltd.
China
589
635
–46
132
–56
25
Toku-Hanbai Group
Japan
288
134
154
631
8
50
Reintube S.L.
Spain
6
4
2
9
–
47
The above table is based on the most recent financial reporting available from associated companies. The Group has stopped recognizing its share of losses in 
Yanggu Wuyue Special Steel Co. Ltd.. The unrecognized share of losses for 2014 is –20. Accumulated unrecognized losses amount to –39, calculated at end of 
period rate for December.
15.
Other financial assets
Fair value for other financial assets, except held-to-maturity investments,  
corresponds to their carrying value. 
2014
2013
Non-current
 
 
Pension and other similar benefit assets (note 23)
100
132
Derivatives
 
 
– not designated for hedge accounting
–
3
– designated for hedge accounting
160
186
Available-for-sale investments
2
2
Held-to-maturity investments
190
156
Financial asset at fair value through profit and loss
–
368
Financial assets classified as loans and receivables
 
 
– finance lease receivables
397
438
– other financial receivables
961
1 031
Closing balance, Dec. 31 
1 810
2 316
Current
 
 
Held-to-maturity investments
172
170
Financial assets classified as loans and receivables
 
 
– finance lease receivables
502
362
– other financial receivables
1 476
1 165
Closing balance, Dec. 31 
2 150
1 697
See note 22 on finance leases and note 27 for information on derivatives and 
credit risk.
14.
Investments in associated companies 
16.
Inventories
2014
2013
Raw materials
1 108
598
Work in progress
2 622
2 522
Semi-finished goods
4 567
4 229
Finished goods
10 067
9 477
Closing balance, Dec. 31
18 364
16 826
Provisions for obsolescence and other write-downs of inventories recorded  
as cost of sales amounted to 861 (451). Reversals of write-downs which were 
recognized in earnings totaled 294 (189). Previous write-downs have been 
reversed as a result of improved market conditions in certain markets.
Inventories recognized as expense amounted to 44 890 (38 906). 
Inventories pledged as security for liabilities amounted to 60 (17), see  
note 26 for additional information. 
1)  The Atlas Copco percentage 
share of each holding 
represents both ownership 
interest and voting power.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
92
Atlas Copco 2014
17.
Trade receivables
Fair value for trade receivables corresponds to their carrying value.  
Trade receivables are categorized as loans and receivables. 
Provisions for bad debts, trade
2014
2013
Provisions at Jan. 1
759
767
Business acquisitions and divestments
33
–6
Provisions recognized for potential losses
393
504
Amounts used for established losses
–176
–348
Release of unnecessary provisions
–160
–149
Change in discounted amounts
–1
1
Translation differences
91
–10
Closing balance, Dec. 31
939
759
Trade receivables of 19 903 (16 619) are reported net of provisions for doubt­ful 
accounts and other impairments amounting to 939 (759). 
Provisions for doubtful accounts and impairment losses recognized in the 
income statement totaled 394 (504). 
For credit risk information, see note 27. 
18.
Other receivables
Fair value for other receivables corresponds to their carrying value.   
2014
2013
Derivatives
 
 
– not designated for hedge accounting
134
107
– designated for hedge accounting
32
143
Financial assets classified as loans and receivables
 
 
– other receivables
2 789
2 137
– accrued income
1 869
1 803
Prepaid expenses
808
608
Closing balance, Dec. 31
5 632
4 798
 
Other receivables consist primarily of VAT claims and advances to suppliers. 
Accrued income relates mainly to service and construction projects. Prepaid 
expenses include items such as rent, insurance, interest, IT and employee costs. 
For credit risk information, see note 27. 
19.
Cash and cash equivalents
Fair value for cash and cash equivalents corresponds to their carrying value. 
Cash and cash equivalents are classified as loans and receivables.  
2014
2013
Cash
6 184
4 990
Cash equivalents
3 220
12 643
Closing balance, Dec. 31 
9 404
17 633
During 2014, cash and cash equivalents had an estimated average effective 
interest rate of 0.69% (0.34). Estimated average effective interest rate has 
increased due to larger deposits in currencies with higher interest rates. The 
committed, but unutilized, credit lines are MEUR 1 460 (1 440) which equals 
to MSEK 13 932 (12 902). 
See note 27 for additional information.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
93
20.
Equity
2014
2013
Shares outstanding
A shares
B shares
Total
A shares
B shares
Total
Opening balance, Jan. 1
839 394 096
390 219 008
1 229 613 104
839 394 096
390 219 008
1 229 613 104
Total number of shares, Dec. 31
839 394 096
390 219 008
1 229 613 104
839 394 096
390 219 008
1 229 613 104
– of which held by Atlas Copco
–11 111 707
–501 379
–11 613 086
–15 414 812
–645 379
–16 060 191
Total shares outstanding, Dec. 31
828 282 389
389 717 629
1 218 000 018
823 979 284
389 573 629
1 213 552 913
At December 31, 2014, Atlas Copco AB’s share capital amounted to SEK 786 008 190 distributed among 1 229 613 104 shares, each with a quota value  
of approximately SEK 0.64 (0.64). Series A shares entitle the holder to one voting right and series B shares entitle the holder to one-tenth of a voting right per 
share.  
Repurchases/ 
Divestment of shares
Number of shares
Cost value  
affecting equity
2014
 AGM  
mandate 2014  
Apr.–Dec.
AGM 
mandate 2013 
Jan.–Mar.
2013
 AGM  
mandate 2013  
Apr.–Dec.
AGM 
mandate 2012 
Jan.–Mar.
2014
2013
Opening balance, Jan. 1
16 060 191
 
 
16 190 929
 
 
2 152
2 061
Repurchase of A shares
–
– 
–
2 148 475
–
2 148 475
–
390
Divestment of A shares
–4 303 105
–3 162 080
–1 141 025
–2 106 312
–1 106 096
–1 000 216
–586
–287
Divestment of B shares
–144 000
–144 000
– 
–172 901
–113 500
–59 401
–10
–12
Closing balance, Dec. 31
11 613 086
 
 
16 060 191
 
 
1 556
2 152
Percentage of shares outstanding
1.0
 
 
1.3
 
 
 
 
The 2014 AGM approved a mandate for the Board of Directors to repur- 
chase and sell series A shares and series B shares on Nasdaq Stockholm in 
order to fulfill the obligations under the performance stock option plan. The 
mandate is valid until the next AGM and allows:
•	 The purchase of not more than 4 800 000 series A shares, whereof a maxi-
mum 3 500 000 may be transferred to personnel stock option holders under 
the performance stock option plan 2014. 
•	 The purchase of not more than 70 000 series A shares, later to be sold on 
the market in connection with payment to board members who have opted 
to receive synthetic shares as part of their board fee. 
•	 The sale of not more than 55 000 series A shares to cover costs related to 
previously issued synthetic shares to board members.
•	 The sale of maximum 8 800 000 series A and B shares in order to cover the 
obligations under the performance stock option plans 2009, 2010 and 2011. 
The 2013 AGM approved a mandate for the Board of Directors to repur- 
chase and sell series A shares and series B shares on the Nasdaq Stockholm in 
order to fulfill the obligations under the performance stock option plan. The 
mandate is valid until the next AGM and allows:
•	 The purchase of not more than 4 250 000 series A shares, whereof a maxi-
mum 3 500 000 may be transferred to personnel stock option holders under 
the performance stock option plan 2013. 
•	 The purchase of not more than 70 000 series A shares, later to be sold on 
the market in connection with payment to board members who have opted 
to receive synthetic shares as part of their board fee. 
•	 The sale of not more than 55 000 series A shares to cover costs related to 
previously issued synthetic shares to board members.
•	 The sale of maximum 8 100 000 series A and B shares in order to cover the 
obligations under the performance stock option plans 2008, 2009 and 2010. 
Repurchases and sales are subject to market conditions, regulatory restric-
tions, and the capital structure at any given time. During 2014, 4 303 105 series 
A shares were repurchased and 144 000 series B shares were divested in accor-
dance with mandates granted by the 2013 and 2014 AGMs. Further informa-
tion regarding repurchases and sales in accordance with AGM mandates is 
presented in the table above. 
The series A shares are held for possible delivery under the 2009–2014 per-
sonnel stock option programs. The series B shares held can be divested over 
time to cover costs related to the personnel stock option programs, including 
social insurance charges, cash settlements or performance of alternative incen-
tive solutions in countries where allotment of employee stock options is 
unsuitable. The total number of shares of series A and series B held by Atlas 
Copco is presented in the table above. 
Reserves
Consolidated equity includes certain reserves which are described below: 
Hedging reserve
The hedging reserve comprises the effective portion of net changes in fair 
value for certain cash flow hedging instruments.
Translation reserve
The translation reserve comprises all exchange differences arising from the 
translation of the financial statements of foreign operations, the translation of 
intra-group receivables from or liabilities to foreign operations that in sub-
stance are part of the net investment in the foreign operations, as well as from 
the translation of liabilities that hedge the company’s net investments in for-
eign operations.  
Non-controlling interest
Non-controlling interests amount to 178 (147). Five subsidiaries, including 
Shandong Rock Drilling Tools Co. Ltd and Atlas Copco (India) Ltd., have 
non-controlling interests. None of these are material to the Group.
Appropriation of profit
The Board of Directors proposes a dividend of SEK 6.00 (5.50) per share, 
totaling SEK 7 308 000 108 if shares held by the company on December 31, 
2014 are excluded. The Board of Directors  also proposes  a share redemption 
procedure, wherby every share is split into one ordinary share and one redemp-
tion share. The redemption share is then automatically redeemed at SEK 6.00 
per share totaling SEK 7 308 000 108, if the shares held by the company on 
December 31, 2014 are excluded. Combined with the propsed ordinary divi-
dend, shareholders will receive SEK 14 616 000 216. For further information, 
see appropriation of profit on page 19. 
The proposed dividend for 2013 of SEK 5.50 per share, as approved by 
the AGM on April 29, 2014, was accordingly paid by Atlas Copco AB. Total 
dividend paid amounted to SEK 6 681 226 409.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
94
Atlas Copco 2014
21.
Borrowings
2014
2013
Maturity
Repurchased 
nominal amount
Carrying 
amount
Fair value
Carrying 
amount
Fair value
Non-current
 
 
 
 
 
 
Medium Term Note Program MEUR 600
2014
MEUR 260
–
–
3 079
3 132
Medium Term Note Program MEUR 500
2019
 
4 771
5 076
4 480
4 771
Medium Term Note Program MEUR 500
2023
 
4 746
5 191
4 453
4 424
Capital market borrowings MUSD 800
2017
 
6 635
7 088
5 689
6 220
Capital market borrowings MUSD 150
2019
 MUSD 7.5
1 117
 1 446 
928 
1 246
Bilateral borrowings EIB MEUR 213
2014
 
–
–
1 908
1 908
Bilateral borrowings EIB MEUR 275
2019
 
2 624
2 693
2 464
2 543
Bilateral borrowings NIB MEUR 100
2014
 
–
–
896
898
Bilateral borrowings NIB MSEK 705
2014
 
–
–
705
714
Bilateral borrowings NIB MEUR 180
2024
 
 1 718
1 803
– 
– 
Other bank loans
 
 
405
405
305
305
Less current portion of long-term borrowings
 
 
–52
–52
–5 043
–5 096
Total non-current bonds and loans 
 
 
21 964
23 650
19 864
21 065
Financial lease liabilities
 
  
109
109
66
66
Other financial liabilities
 
 
109
109
67
67
Total non-current borrowings 
 
 
22 182
23 868
19 997
21 198
Current
 
 
 
 
 
 
Current portion of long-term borrowings
 
 
52
52
5 043
5 096
Short term loans
 
 
2 163
2 163
505
504
Financial lease liabilities
  
 
69
69
47
47
Total current borrowings
 
 
2 284
2 284
5 595
5 647
Closing balance, Dec. 31
 
 
24 466
26 152
25 592
26 845
The difference between carrying value and fair value relate to the measurement method as certain liabilities are reported at amortized cost and not at fair value. 
See additional information about the Group’s exposure to interest rate risk and foreign currency risk in note 27. 
During 2014 two loans matured, a Medium Term Note Program of MEUR 600, of which MEUR 260 had previously been repurchased, as well as a Bilateral 
borrowing of MEUR 213. At the end of 2014 two Bilateral loans provided by NIB amounting to MEUR 100 and MSEK 705, respectively, were refinanced in 
advance by a new Bilateral loan provided by NIB amounting to MEUR 180, maturity 2024.
Since the balance sheet date, Atlas Copco AB has entered into a loan agreement with EIB amounting to MEUR 300. Currently, the facility is undrawn. The 
availability period for drawings under the facility is one year (until January 2016). If no drawings are made by then, the facility will be cancelled.
Atlas Copco has a long-term debt rating of A (A) from Standard & Poor’s Corporation, A (–) from Fitch Ratings, and A2 (A2) from Moody’s Investor Service 
Inc. Other than standard undertakings such as negative pledge and pari passu, the interest-bearing loans and borrowings are not subject to any financial covenants.
The Group’s back-up facilities are specified in the table below.
Back-up facilities
Nominal amount
Maturity
Utilized 
Medium Term Note Program 1, 3)
MUSD 3 000
–
MUSD 1 948
Commercial papers 1, 2)
MSEK 17 656
–
–
Credit-line 4)
MEUR 640
2019
–
Credit-line
MEUR 800
2019
–
Committed undrawn amount, NIB 5)
MEUR 20
2015
–
Equivalent in SEK
MSEK 55 106
 
MSEK 15 271    
1)	 Interest is based on market conditions at the time when the facility is utilized.  
Maturity date is set when the facility is utilized. 
2)	 The maximum amounts available under these programs total MUSD 1 000,  
MEUR 400 and MSEK 6 000 corresponding to a total of MSEK 17 656 (16 098). 
3) 	Utilized nominal amounts MEUR 1 600 (1 600), which corresponds to MUSD 1 948 (2 201).
4) 	The multi-currency revolving credit facility of MEUR 640 has two one year extension options. 
5) 	Atlas Copco has since the balance sheet date increased the bilateral loan from NIB of  
MEUR 180 to MEUR 200.
The Group’s short-term and long-term borrowings are distributed among the  
currencies detailed in the table below.
2014
2013
Currency
Local currency 
(millions)
MSEK
%
Local currency  
(millions)
MSEK
%
EUR
1 464
13 970
58
1 946
17 438
68
SEK
29
29
–
710
710
3
USD 
1 197
9 384
38
1 053
6 853
27
Other
– 
1 083
4
 –
591
2
Total 
 
24 466
100
 
25 592
100
The following table shows the maturity structure of the Group’s borrowings 
and includes the effect of interest rate swaps.
Maturity
Fixed
Floating
Carrying 
amount
Fair value
2015 
–
2 284
2 284
2 284
2016
–
347
347
347
2017
4 976
1 821
6 797
7 251
2018
–
29
29
29
2019
8 512
14
8 526
9 228
2020
–
13
13
13
2021
–
3
3
3 
2022
–
3
3
3
2023
4 746
–
4 746
5 191
2024
–
1 718
1 718
1 803
Total
18 234
6 232
24 466
26 152

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
95
Operating leases – lessor
Atlas Copco has equipment which is leased to customers under operating 
leases. Long-term operating lease contracts are financed and administrated by 
Atlas Copco Customer Finance and certain other subsidiaries. Future pay-
ments for non-cancelable operating leasing contracts fall due as follows:
2014
2013
Less than one year
370
366
Between one and five years
310
287
More than five years
95
69
Total 
775
722
Operating leases – lessee
The leasing costs of assets under operating leases amounted to 925 (816), and 
are derived primarily from rented premises, machinery, and computer and 
office equipment. Operating leasing contracts for office and factory facilities 
typically run for a period of 10 to 15 years. The total leasing cost includes min-
imum lease payments of 865 (780), contingent rent of 72 (48), and sublease 
payments received of 12 (12). Future payments for non-cancelable operating 
leasing contracts fall due as follows:
2014
2013
Less than one year
731
597
Between one and five years
1 348
1 100
More than five years
550
247
Total 
2 629
1 944
The total of future minimum sublease payments expected to be received 
was 27 (25).
Future payments for assets held under finance leases as lessee will fall due as follows:
2014
2013
Minimum lease 
payments
Interest 
Principal
Minimum lease 
payments
Interest 
Principal
Less than one year
75
6
69
 
51
4
47
Between one and five years
116
10
106
 
74
8
66
More than five years
3
–
3
 
–
–
–
Total 
194
16
178
 
125
12
113
 
Finance leases – lessor
The Group offers lease financing to customers via Atlas Copco Customer Finance and certain other subsidiaries. See note 27 for information on financial  
exposure and principles for control of financial risks. Future lease payments to be received fall due as follows:
2014
2013
Gross  
investment
Present value 
of minimum  
lease payments
Gross  
investment
Present value  
of minimum  
lease payments
Less than one year
539
502
 
393
362
Between one and five years
395
385
 
477
423
More than five years
13
12
  
18
15
 
947
899
 
888
800
Unearned finance income
–
48
 
–
88
Total 
947
947
 
888
888
Finance leases – lessee
Assets utilized under finance leases
Machinery and 
equipment
Rental 
equipment
Carrying amounts, Jan. 1, 2014
112
8
Carrying amounts, Dec. 31, 2014
151
14
Carrying amounts, Jan. 1, 2013
119
7
Carrying amounts, Dec. 31, 2013
112
8
Assets utilized under finance leases are comprised primarily of vehicles.
22.
Leases
LEASING COST UNDER OPERATING LEASES – LESSEE
Minimum lease 
payments 865 (780) 
Contingent rent 
72 (48) 
Sublease payments 
12 (12)
Sublease payment 
expected to be 
received 27 (25)

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
96
Atlas Copco 2014
Post-employment benefits
Atlas Copco provides post-employment defined benefits pensions and other 
long- term employee benefits in most of its major locations. The most signifi-
cant countries in terms of size of plans are Belgium, Canada, Germany,  
Sweden, the United Kingdom and the United States. Some plans are funded  
in advance with certain assets or funds held separately from the Group for 
future benefit payment obligations. Other plans are unfunded and the benefits 
from those plans are paid by the Group as they fall due. 
The plans in Belgium cover early retirement, jubilee, and termination 
indemnity. All of the plans are unfunded.
In Canada, Atlas Copco provides a pension plan and a supplemental 
retirement pension benefit plan for executives. Both plans are funded. There 
are also two unfunded plans, a post-retirement benefit plan and a post-
employment plan.
The German plans include those for pensions, early retirements and  
jubilee. The plans are funded as of 2013.
There are three defined benefit pension plans in Sweden. The ITP plan is  
a final salary pension plan covering the majority of white collar employees in 
Sweden. Atlas Copco finances the benefits through a pension foundation. The 
second plan relates to a group of employees earning more than ten income base 
amounts that has opted out from the ITP plan. This plan is insured. The third 
defined benefit pension plan relates to former senior employees now retired. In 
Sweden, in addition to benefits relating to retirement pensions, Atlas Copco has 
obligations for family pensions for many of the Swedish employees, which are 
funded through a third party insurer, Alecta. This plan is accounted for as a 
defined contribution plan as sufficient information is not available for calculat-
ing the net pension obligation. 
23.
Employee benefits
In the United Kingdom, there is a final salary pension plan. This plan is 
funded. In 2010, the plan was converted to a defined contribution plan for 
future services.
In the United States, Atlas Copco provides a pension plan, a post-retire-
ment medical plan, and a number of supplemental retirement pension benefits 
for executives. The pension plan is funded while the other plans are unfunded.
The Group identifies a number of risks in investments of pension plan 
assets. The main risks are interest rate risk, market risk, counterparty risk, 
liquidity and inflation risk, and currency risk. The Group is working on a regu-
lar basis to handle the risks and has a long term investment horizon. The invest-
ment portfolio should be diversified, which means that multiple assets classes, 
markets and issuers should be utilized. An asset liability management assess-
ment should be conducted periodically. The study should include a number of 
elements. The most important elements are, the duration of the assets and the 
timing of liabilities, the expected return of the assets, the expected development 
of liabilities, the forecasted cash flows and the impact of a shift in interest rates 
on the obligation.
The net obligations for post-employment benefits and other long-term 
employee benefits have been recorded in the balance sheet as follows:
2014
2013
Financial assets (note 15)
–100
–132
Post-employment benefits
2 531
1 414
Other provisions (note 25)
206
40
Closing Balance, net
2 637
1 322
The tables below show the Group’s obligations for post-employment benefits and other long-term employee benefits, the assumptions used to determine these 
obligations and the assets relating to these obligations for employee benefits, as well as the amounts recognized in the income statement and the balance sheet.  
The net amount recognized in balance sheet amounted to 2 637 (1 322). The weighted average duration of the obligation is 15.8 (15.8) in years. 
Post-employment benefits  
 
2014
Funded  
pension plans
Unfunded  
pension
plan
Other funded 
plans
Other  
unfunded
plans
Total
Present value of defined benefit obligations
 8 757    
 1 493    
 93    
 198    
 10 541    
Fair value of plan assets 
–7 866    
 –      
–88    
 –      
–7 954    
Present value of net obligations
 891    
 1 493    
 5    
 198    
 2 587    
Effect of asset ceiling
 29    
 –      
 –      
 –      
 29    
Other long-term service obligations
 –      
 –      
 21    
 –      
 21    
Net amount recognized in balance sheet
 920    
 1 493    
 26    
 198    
 2 637    
2013
Present value of defined benefit obligations
6 600
 928
84
169 
7 781
Fair value of plan assets 
–6 442
 –
–81
 –
–6 523
Present value of net obligations
158
928
3
169
1 258
Effect of asset ceiling
45
–
 –
–
45
Other long-term service obligations
 –
 –
 –
19
19
Net amount recognized in balance sheet
203
928
3
188
1 322

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
97
Plan assets consist  
of the following:
2014
2013
Quoted 
market price
Unquoted 
market price
Total
Debt instruments
4 665
471
5 136
3 502
Equity instruments
1 212
184
1 396
1 151
Cash
242
66
308
1 035
Property
255
216
471
306
Other
284
359
643
529
Closing balance, Dec 31  
6 658
1 296
7 954
6 523
Movement in plan assets
2014
2013
Fair value of plan assets at Jan 1
6 523
5 659
Business acquisitions
67
65
Interest income
276
212
Remeasurement - Return on plan assets
477
14
Settlements
–33
–1
Employer contributions
176
786
Plan members contributions
18
17
Administrative expenses
–5
–5
Benefit paid by the plan
–247
–241
Reclassifications
16
–
Translation differences
686
17
Fair value of plan assets at Dec 31
7 954
6 523
The plan assets are allocated among the  
following geographic areas:
2014
2013
Europe
5 902
4 981
North America
1 863
1 485
Rest of the world
189
57
Total  
7 954
6 523
Asset ceiling
2014
2013
Asset ceiling at Jan. 1
45
–
Interests
1
–
Remeasurements - asset ceiling
–20
43
Translation difference
3
2
Asset ceiling, Dec. 31
29
45
Movement in present value of the  
obligations for defined benefits 
2014
2013
Defined benefit obligations at Jan. 1
7 781
7 702
Current service cost
248
217
Past service cost
–6
–5
Gain/loss on settlement
5
– 
Interest expense (+)
325
283
Actuarial gains (-)/ lossses (+) arising from 
experience adjustments
49
17
Actuarial gains (-)/ lossses (+) arising from financial 
assumptions
1 225
–231
Actuarial gains (-)/ lossses (+) arising from 
demographic assumptions
–6
150
Business Acquisitions
488
66
Settlements
–33
–1
Benefits paid from plan or company assets
–473
–456
Reclassifications
55
–
Translation differences
883
39
Defined benefit obligations, Dec. 31
10 541
7 781
Remeasurements recognized in other comprehensive income amounts to 759 
(–45) and 13 (9) in profit and loss. The Group expects to pay 331 in contribu-
tions to defined benefit plans in 2015. Expenses related to defined contribution 
plans amounted to 689 (685).
Expenses recognized in the income statement
2014
2013
Current service cost
248
217
Past service cost
–6
–5
Gain loss on settlements
5
– 
Net interest cost
49
71
Employee contribution/ Participant contribution
–18
–17
Remeasurement of other long-term benefits
13
9
Administrative expenses
5
5
Total  
296
280
The total benefit expense for defined benefit plans amounted to 296 (280), 
whereof 247 (209) has been charged to operating expenses and 49 (71) to  
financial expenses. 
Principal actuarial assumptions at the balance sheet 
date (expressed as weighted averages, in %)
2014
2013
Discount rate
 
 
Europe
1.82
3.76 
North America
3.72
4.57
Future salary increases
 
 
Europe
2.64
2.97
North America
3.51
3.53
Medical cost trend rate
 
  
North America
8.19
8.20
The Group has identified discount rate, future salary increases, and mortality 
as the primary actuarial assumptions for determining defined benefit obliga-
tions. Changes in those actuarial assumptions affect the present value of the 
net obligation. The discount rate is determined by reference to market yields at 
the balance sheet date using, if available, high quality corporate bonds (AAA 
or AA) matching the duration of the pension obligations. In countries where 
corporate bonds are not available, government bonds are used to determine 
the discount rate. In Sweden in line with prior years, mortgage bonds are used 
for determining the discount rate. 
Atlas Copco’s mortality assumptions are set by country, based on the 
most recent mortality studies that are available. Where possible, generational 
mortality assumptions are used, meaning that they include expected improve-
ments in life expectancy over time.
The table below shows the sensitivity analysis for discount rate and 
increase in life expectancy and describes the potential effect on the present 
value of the defined pension obligation.
Sensitivity analysis
Europe
North 
America
Change in discount rate + 0.50%
  
–112
–136
Change in discount rate – 0.50%
 
124
153
Increase in life expectancy,  +1 year
 
57
68
0
2 000
4 000
6 000
8 000
2013
2014
MSEK
The defined benefit 
obligations for employee 
benefits are comprised of 
plans in the following 
geographic areas:
23.
Employee benefits, continued
Europe
North America
Rest of the world

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
98
Atlas Copco 2014
Share value based incentive programs
In 2009–2013, the Annual General Meeting decided on performance based 
personnel stock option programs based on a proposal from the Board on an 
option program for the respective years. In 2014, the Annual General Meeting 
decided on a performance based personnel stock option program for 2014 sim-
ilar to the 2009–2013 programs.    
Option programs 2009–2014
At the Annual General Meeting 2009–2014 respectively, it was decided to 
implement performance related personnel stock option programs. The deci-
sion to grant options was made in April each year and the options were issued 
in March the following year (issue date). The number of options issued each 
program year depended on the value creation in the Group, measured as Eco-
nomic Value Added (EVA), for the respective program year. For the 2014 
option program, the number of options varies on a linear basis within a preset 
EVA interval. The size of the plan and the limits of the interval have been 
established 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 issue, the exercise price was calculated as 110% of the 
average trading price for series A shares during a ten day period following the 
date of the publishing of the fourth quarter report. The options were issued 
without compensation paid by the employee and the options remain the prop-
erty of the employee only to the extent that they are exercisable at the time 
employment is terminated. The 2009 program has a term of five years from the 
issue date and the options are not transferable. The 2010–2014 programs have 
a term of five years from the grant date and the options are not transferable. 
The options in the program 2009 is exercisable at a rate of one third per year, 
starting one year after the issue date. The options in the 2010–2014 programs 
become exercisable at 100% three years after grant.
The 2010–2014 programs include a requirement for senior executives (31 
in total) to purchase Atlas Copco A shares for 10% of their gross base salary in 
order to be granted options. A lower amount of investment will reduce the 
number of options proportionately. Further, senior executives who have 
invested in Atlas Copco A shares will have the option to purchase one match-
ing share per each share purchased at a price equal to 75% of the average trad-
ing price for series A shares during a ten day period following the date of the 
publishing of the fourth quarter report. This right applies from three years 
after grant until the expiration of the stock option program. 
The Board had the right to decide to implement an alternative incentive 
solution (SARs) for key persons in such countries where the grant of person-
nel options was not feasible. 
In the 2009–2014 programs, the options may, on request by an optionee in 
Sweden, be settled by the Company paying cash equal to the excess of the clos-
ing price of the shares over the exercise price on the exercise day, less any 
administrative fees. Due to this choice of settlement by the Swedish employees, 
these options are classified for accounting purposes as cash-settled in accor-
dance with IFRS 2.
The Black-Scholes model is used to calculate the fair value of the options/
SARs in the programs at issue date. Since the issue date for the 2014 program 
will be in March 2015, the fair value has been simulated through a Monte 
Carlo model of what it may be established at in March 2015. For the programs 
in 2013 and 2014, the fair value of the options/SARs was based on the follow-
ing assumptions:
Key assumptions
2014 Program
(Dec. 31, 2014)
2013 Program
(at issue date)
Expected exercise price
SEK 240/164 1)
SEK 193/132 1) 2)
Expected volatility
30%
33%
Expected options life (years)
3.05
3.1
Expected share price
SEK 218.45
SEK 190.00
Expected dividend (growth)
SEK 6.05 (10%)
SEK 5.50 (10%)
Risk free interest rate
0.07%
0.90%
Expected average grant value
SEK 27.33/56.70 1)
SEK 32.90/58.00 1) 2)
Maximum number of options
4 622 729
4 072 858
– of which forfeited
194 075
4 072 858
Number of matching shares
38 292
43 675
1)  Matching shares for senior executives.      2)  Actual.
The expected volatility has been determined by analyzing the historic develop-
ment of the Atlas Copco A share price as well as other shares on the stock 
market.
When determining the expected option life, assumptions have been made 
regarding the expected exercising behavior of different categories 
of optionees.
For the stock options in 2009–2014 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
2009
June 2009
March 2013
March 2011
March 2015
2010
June 2010
April 2013
May 2013
April 2015
2011
June 2011
April 2014
May 2014
April 2016
2012
June 2012
April 2015
May 2015
April 2017
2013
June 2013
April 2016
May 2016
April 2018
2014
May 2014
April 2017
May 2017
April 2019
For the 2014 program, a new valuation of the fair value has been made and 
will be made at each reporting date until the issue date.
Timeline 2014 option plan   
Annual  
General Meeting
Information  
of grant
Senior executives’
own investments
Exercise  
price set
Issue of  
options
Plan expires
Vesting period
Options and matching shares exercisable
Apr. 2014
May 2014
Nov. 2014
Feb. 2015
Mar. 2015
May 1, 2017
April 30, 2019
23.
Employee benefits, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
99
For SARs and the options classified as cash-settled, the fair value is recognized 
as an expense over the same vesting period; the fair value is, however, remea-
sured 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 2014 for all share-based incen-
tive programs amounted to 141 (56) excluding social costs of which 32 (39) 
refers to equity-settled options. The related costs for social security contribu-
tions 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 157 (186). 
Atlas Copco shares are held by the Parent Company in order to cover commit-
ments under the programs 2009–2014, see also note 20.
Summary of share value based incentive programs
Program
Initial number  
of employees
Initial number  
of options
Expiration  
date
Exercise  
price, SEK
Type of 
share
Fair value  
on grant date
Intrinsic value  
for vested SARs
Stock options
 
 
 
  
 
 
 
2007
177
3 222 149
Mar. 30, 13
101.94
A
132.50
 – 
2008
198
3 570 079
Mar. 20, 14
68.93
A
22.32
 – 
2009
222
3 902 878
Mar. 20, 15
104.86
A
28.59
 – 
2010
221
3 796 922
Apr. 30, 15
166.99
A
28.32
 – 
2011
224
2 735 804
Apr. 30, 16
184.00
A
22.47
 – 
2012
248
3 440 015
Apr. 30, 17
200.00
A
28.30
 – 
2013
250
–
N/a
N/a
N/a
N/a 
 – 
Matching shares
 
 
  
 
 
  
 
2010
21
38 334
Apr. 30, 15
113.59
A
53.40
 – 
2011
20
39 495
Apr. 30, 16
125.00
A
41.23
 – 
2012
28
42 289
Apr. 30, 17
136.00
A
52.30
 – 
2013
28
43 675
Apr. 30, 18
132.00
A
58.00 
 – 
Share appreciation rights
 
 
 
  
 
 
2007
38
589 966
Mar. 30, 13
101.94
A
 – 
116.46
2008
41
635 348
Mar. 20, 14
68.93
A
 – 
149.47
2009
47
741 240
Mar. 20, 15
104.86
A
 – 
113.54
2010
49
756 351
Apr. 30, 15
166.99
A
 – 
51.41
2011
48
530 524
Apr. 30, 16
184.00
A
 – 
34.40
2012
56
704 004
Apr. 30, 17
200.00
A
 – 
 – 
2013
58
–
N/a
N/a
N/a
 N/a
 –
Number of options/rights 2014
Program
Outstanding 
Jan.1
Granted
Exercised
Expired/ 
forfeited
Outstanding  
Dec. 31
–of which 
exercisable
Time to expiration,  
in months
Average stock price for 
exercised options, SEK
Stock options
 
 
  
 
 
 
 
 
2008
688 171
 –   
 687 129 
 1 042 
–
 – 
 – 
180
2009 1)
876 113
 –   
 640 922 
 – 
235 191
 235 191 
3
202
2010 2)
3 155 039
 –   
 1 811 823 
 15 127 
1 328 089
 1 328 089 
4
208
2011 3)
2 595 051
 –   
 409 255 
 21 654 
2 164 142
 2 164 142 
16
208
2012 4)
3 367 853
 –   
 –   
 137 098 
3 230 755
 – 
28
 – 
Matching shares
 
 
 
 
 
 
 
 
2010
25 315
 –   
 16 349 
 – 
8 966
8 966
4
 205 
2011
36 522
 –   
 13 676 
 – 
22 846
22 846
16
 204 
2012
42 289
 –   
 –   
 4 430 
37 859
 – 
28
 – 
2013
43 675
 –   
 –   
 4 798 
38 877
 – 
40
 – 
Share appreciation rights
 
  
 
 
  
 
 
2008
74 388
 –   
 73 861 
 527 
–
 – 
 – 
182
2009
158 950
 –   
 119 246 
 – 
39 704
39 704
3
203
2010
579 826
 –   
 355 292 
 – 
224 534
224 534
4
201
2011
487 216
 –   
 140 752 
 21 654 
324 810
324 810
16
202
2012
691 977
 –   
 –   
 63 354 
628 623
 – 
28
 – 
All numbers have been adjusted for the effect of share split in 2007 and the redemption in 2011 in line with the method used by Nasdaq Stockholm 
(Stockholm Stock Exchange) to adjust exchange-traded options contracts.
23.
Employee benefits, continued
1) 	Of which 84 492 have been accounted for as cash settled.
2) 	Of which 504 534 have been accounted for as cash settled.
3) 	Of which 793 359 have been accounted for as cash settled.
4) 	Of which 1 115 905 have been accounted for as cash settled.

100
Atlas Copco 2014
FINANCIAL STATEMENTS, ATLAS COPCO GROUP
23.
Employee benefits, continued
24.
Other liabilities
Fair value for other liabilities corresponds to carrying value.
Other current liabilities
2014
2013
Derivatives
 
 
– not designated for hedge accounting
337
34
– designated for hedge accounting
159
209
Other financial liabilities
 
 
– other liabilities
3 061
2 245
– accrued expenses
6 537
5 159
Advances from customers
2 219
1 798
Prepaid income
49
47
Deferred revenues construction contracts
190
313
Deferred revenues service contracts
923
857
Closing balance, Dec 31
13 475
10 662
Accrued expenses include items such as social costs, vacation pay liability, 
accrued interest, and accrued operational expenses.
See note 27 for information on the Group’s derivatives.
Number of options/rights 2013
Program
Outstanding 
Jan.1
Granted
Exercised
Expired/ 
forfeited
Outstanding  
Dec. 31
–of which 
exercisable
Time to  
expiration, in months
Average stock price for 
exercised options, SEK
Stock options
 
 
  
 
 
 
 
 
2007
443 102
 –   
443 102
 –   
–
 – 
 – 
184
2008
1 355 874
 –   
667 703
 –   
688 171
688 171
3
182
2009
1 200 730
 –   
315 541
9 076
876 113
876 113
15
181
2010
3 524 615
 –   
324 195
45 381
3 155 039
 3 155 039 
16
184
2011
2 703 323
 –   
 –   
108 272
2 595 051
 – 
28
 – 
2012
3 440 015
 –   
 –   
72 162
3 367 853
 – 
40
 – 
Matching shares
 
 
 
 
 
 
 
 
2010
27 780
 –   
2 465
 –   
25 315
 25 315 
16
176
2011
39 495
 –   
 –   
2 973
36 522
 – 
28
 – 
2012
42 289
 –   
 –   
 –   
42 289
 – 
40
 – 
2013
 –   
43 675
 –   
–
43 675
 – 
52
 – 
Share appreciation rights
 
  
 
 
  
 
 
2007
53 008
 –   
53 008
 –   
–
 – 
 – 
185
2008
171 402
 –   
97 014
 –   
74 388
74 388
3
184
2009
231 978
 –   
66 221
 6 807 
158 950
158 950
15
181
2010
756 351
 –   
146 271
 30 254 
579 826
579 826
16
183
2011
519 697
 –   
 –   
 32 481 
487 216
 – 
28
 – 
2012
704 004
 –   
 –   
 12 027 
691 977
 – 
40
 – 
All numbers have been adjusted for the effects of share split and redemption in 2007 and in 2011 in line with the method used by Nasdaq Stockholm to adjust 
exchange-traded options contracts.

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
101
2014
Product­ 
­warranty
Restructuring
Other
Total
Opening balance, Jan. 1
868
108
771
1 747
During the year
 
 
 
 
– provisions made
1 136
156
504
1 796
– provisions used
–1 046
–86
–476
–1 608
– provisions reversed 
–173
–8
–102
–283
Business acquisitions
255
27
218
500
Translation differences
133
9
87
229
Closing balance, Dec. 31
1 173
206
1 002
2 381
Non-current
186
74
628
888
Current
987
132
374
1 493
Total 
1 173
206
1 002
2 381
2013
Product­ 
­warranty
Restructuring
Other
Total
Opening balance, Jan. 1
925 
150
901 
1 976 
During the year
 
 
 
 
– provisions made
830
85
320
1 235
– provisions used
–697
–100
–334
–1 131
– provisions reversed 
–187
–24
–95
–306
Business acquisitions
1
–
–
1
Translation differences
–4
–3
–21
–28
Closing balance, Dec. 31
868
108
771
1 747
Non-current
123
32
527
682
Current
745
76
244
1 065
Total 
868
108
771
1 747
2014,  
Maturity
Product­ 
­warranty
Restructuring
Other
Total
Less than one year
987
132
374
1 493
Between one and five years
181
55
563
799
More than five years
5
19
65
89
Total
1 173
206
1 002
2 381
Other provisions consist primarily of amounts related to share-based pay-
ments including social fees, other long-term employee benefits (see note 23), 
and environmental remediation obligations.
26.
Assets pledged and contingent liabilities
Assets pledged for debts to credit  
institutions and other commitments
2014
2013
Inventory and tangible fixed assets
61
22
Endowment insurances
111
78
Other receivables
392
121
Total
564
221
Contingent liabilities
2014
2013
Notes discounted
17
15
Sureties and other contingent liabilities
270
188
Total
287
203
Sureties and other contingent liabilities relate primarily to pension  
commitments and commitments related to customer claims and various  
legal matters.
27.
Financial exposure and principles  
for control of financial risks
Capital management
Atlas Copco defines capital as borrowings and equity, which at December 31 
totaled 75 219 (65 386). The Group’s policy is to have an adequate capital 
structure to maintain investor, creditor and market confidence and to support 
future development of the business. The Board’s opinion is that the dividend 
over a business cycle should correspond to about 50% of earnings per share. In 
recent years, the Board has also proposed, and the Annual General Meeting 
has approved, distributions of “excess” equity to the shareholders through 
share redemptions and share repurchases.
There are no external capital requirements imposed on the Group.
SEK
0
5
10
15
20
25
2014*
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
4.84
22.38
9.00
12.00
Ordinary dividend 
per share, SEK
Earnings per share, SEK
Dividend and redemption 
per share, SEK
* Proposed by the 
   Board of Directors
Financial risks
The Group is exposed to various financial risks in its operations.  
These financial risks include:
•  Funding and liquidity risk
•  Interest rate risk
•  Currency risk 
•  Credit risk 
•  Other market and price risks
The Board of Directors establishes the overall financial policies and monitors 
compliance to the policies. The Group’s Financial Risk Management  
Committee (FRMC) manages the Group’s financial risks within the mandate 
given by the Board of Directors. The members of the FRMC are the CEO, 
CFO, Group Treasurer, and Head of Treasury Control. The FRMC meets  
on a quarterly basis or more often if circumstances require. 
Group Treasury has the operational responsibility for financial risk  
management in the Group. Group Treasury manages and controls financial 
risk exposures, ensures that appropriate financing is in place through loans  
and committed credit facilities, and manages the Group’s liquidity.   
Group Treasury
Financial Risk Management 
Committee (FRMC)
Board of Directors 
Atlas Copco AB
Group 
Treasury
Asia Paciﬁc, 
China
Policies
Decisions
Execution 
and 
monitoring
Group 
Treasury 
Americas, 
U.S.A.
Group 
Treasury 
Sub-Sahara, 
South Africa
Group 
Treasury 
Sweden, 
Sweden
Group 
Treasury 
South America, 
Chile
Funding and liquidity risk
Funding risk is the risk that the Group does not have access to adequate 
financing on acceptable terms at any given point in time. Liquidity risk is the 
risk that the Group does not have access to its funds, when needed, due to poor 
market liquidity.
Group funding risk policy 
The Group´s funding risk policy refers to Atlas Copco AB and Atlas Copco 
Airpower n.v. as external borrowings mainly are held in these entities.
25.
Provisions

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
102
Atlas Copco 2014
•	 The Group should maintain minimum MSEK 6 000 committed credit  
facilities to meet operational, strategic and rating objectives. Actual 
amount at year-end was MEUR 1 460 (1 440) which corresponds to 
MSEK13 932 (12 902). 
•	 The average tenor (i.e. time until maturity) of the Group’s external debt 
should be at least 3 years. Actual tenor at year-end was 5.1 years (4.4).
•	 No more than MSEK 5 000 of the Group’s external debt may mature 
within the next 12 months. In 2015 no debt is maturing (4 987).
•	 Adequate funding at subsidiary level shall at all times be in place. 
Status at year-end
As per December 31, there were no deviations from the Group funding risk 
policy. Cash and cash equivalents totaled 9 404 (17 633). The overall liquidity of 
the Group is strong considering the maturity profile of the external borrowings, 
the balance of cash and cash equivalent as of year-end, and available back-up 
credit facilities from banks. Please refer to note 21 for information on utilized 
borrowings, maturity, and back-up facilities.
The following table shows maturity structure of the Group’s financial 
assets and liabilities. The figures shown are contractual undiscounted cash 
flows based on contracted date, when the Group is liable to pay or eligible to 
receive, and includes both interest and nominal amounts.
Financial instruments 
Up to  
1 year
1–5 
years
Over  
5 years
Assets
 
 
 
Financial assets
11 
 1 543
101 
Other receivables
–
50  
6 
Derivatives
76 
114 
–
Non-current financial assets
87  
1 707 
107 
Trade receivables
19 903 
–  
 –
Financial assets
2 209 
– 
– 
Other receivables
2 393  
– 
– 
Derivatives
166 
– 
–  
Other accrued income 
1 869 
– 
– 
Cash and cash equivalents
9 404 
– 
– 
Current financial assets
35 944 
 –
– 
Financial assets
 36 031
1 707 
107 
Liabilities
 
 
 
Liabilities to credit institutions
731 
17 861 
7 058 
Other financial liabilities
– 
109 
– 
Derivatives
37 
 135
– 
Other liabilities
– 
669  
 –
Non-current financial liabilities
768  
18 774 
7 058  
Liabilities to credit institutions
2 238 
– 
– 
Current portion of interest-bearing liabilities
52  
 –
– 
Derivatives
496 
– 
– 
Other accrued expenses
6 537 
–  
– 
Trade payables
7 876
– 
– 
Other liabilities
  3 061
– 
– 
Current financial liabilities
20 260 
– 
– 
Financial liabilities
21 028 
18 774 
7 058 
Derivatives classified as assets designated for hedge accounting amount to 192 
(329) and derivatives classified as liabilities designated for hedge accounting 
amount to 309 (224). Other derivatives are classified as held for trading.
Interest rate risk
Interest rate risk is the risk that the Group is negatively affected by changes in 
the interest rate levels.
Group interest rate risk policy
The interest rate risk policy states that the average duration (i.e. period  
for which interest rates are fixed) should be a minimum of 6 months (6) and  
a maximum of 48 months (48). 
Status at year-end 
To manage interest rate risk, the Group uses interest rate swap agreements to con-
vert interest on loans. The Group has entered into interest rate swaps to convert 
fixed interest rates to variable interest rates. These swaps are designated as fair value 
hedging instruments, with a nominal amount of MUSD 200 (200). The Group has 
also interest rate swaps to convert variable interest rates to fixed interest rates on the 
loan of MEUR 275 (275). These swaps are designated as cash flow hedging instru-
ments. For more information about the Group’s borrowings, see note 21.
Including the effect of the derivatives, the effective interest rate and inter-
est duration of the Group’s borrowings at year-end was 3.0% (2.7) and 46 
months (45) respectively. Excluding any derivatives, the Group’s effective inter-
est rate was 3.5% (3.3) and the average interest duration was 42 months (41).
Outstanding derivative 
instruments related to 
interest rate risk
2014
2013
Fair 
value
Nominal 
amount
Fair 
value
Nominal 
amount
Interest rate swaps,  
fair value hedge
 
 
 
 
Assets
MSEK 160 
MUSD 200 
MSEK 186 
MUSD 200 
Liabilities
– 
– 
 –
– 
Interest rate swaps,  
cash flow hedge
  
 
 
 
Assets
– 
– 
– 
 –
Liabilities
 MSEK 148
MEUR 275 
MSEK 15 
MEUR 275 
The following tables show the estimated effect, in MSEK, of a parallel upward 
and downward shift of one percentage point (100 basis points) in all interest 
rates on external loans and on interest rate swaps hedging the loans.
The first table shows the estimated effect on the profit and loss before 
taxes. The second table shows the fair value effect on loans and interest rate 
swaps reported at fair value. Certain loans are reported at their amortized cost 
and are therefore not affected by changes in interest rate levels. For the main 
part of the interest rate swaps, fair value hedge accounting or cash flow hedge 
accounting is applied, therefore the impact on earnings is small.
Interest sensitivity, earnings
2014
2013
Earnings impact
Earnings impact
Market interest rate +1%
–32 
–48 
Market interest rate –1%
32 
48 
Interest sensitivity, fair value 
2014
2013
Earnings 
impact
OCI 
impact
Earnings 
impact
OCI 
impact
Market interest rate +1%
5 
 118
4 
127 
Market interest rate –1%
–5 
–126 
–4
–135 
Currency risk
The Group is present in various geographical markets and undertakes trans­
actions denominated in foreign currencies and consequently exposures to 
exchange rate fluctuations arise. This affects both transaction exposure (cash 
flow) and translation exposure (balance sheet). These two different exposures 
are explained separately below.
Transaction exposure
Group currency risk policy
Transaction exposure risk is the risk that profitability is negatively affected  
by changes in exchange rates, affecting cash flows in foreign currencies in the 
operations. Due to the Group’s presence in various markets, there are inflows 
and outflows in different currencies. As a normal part of business, net sur-
pluses or deficits in specific currencies are created. The value of these net posi-
tions fluctuates with the changes in currency rates and, thus, a transaction 
exposure is created. The following describes the Group’s general policies for 
managing transaction exposure:
•	 Exposures should be reduced by matching in and outflows of the same  
currencies.
•	 Business area and divisional management are responsible for maintaining 
readiness to adjust their operations (price and cost) to compensate for 
adverse currency movements. 
•	 Based on the assumption that hedging does not have any significant positive 
or negative effect on the Group’s results over the long term, the policy does 
not recommend transaction exposures to be hedged on an ongoing basis. 
Business areas and divisions should normally not hedge currency risks. 
Hedging can, however, be motivated in case of long-term contracts where 
there is no possibility to adjust the contract price or the associated costs. 
•	 The FRMC can decide if parts of the transaction exposure should be 
hedged. Transactions shall qualify for hedge accounting in accordance  
with IFRS and hedging beyond 18 months is not allowed. 
27.
Financial exposure and principles for control of financial risks, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
103
The following table illustrates the effect that one percentage point weakening  
or strengthening of the SEK against all other currencies would have on the 
transaction exposure.
Transaction exposure sensitivity
2014
2013
SEK exchange rate +1%
–96 
 –93
SEK exchange rate –1%
96 
 93
Graph 2 illustrates the effect on the Group’s pre-tax earnings of one-sided  
fluctuations in USD and EUR exchange rates if no hedging transactions have 
been undertaken, and before any impact of offsetting price adjustments or 
similar measures. The graph indicates for example that the Group’s pre-tax 
earnings of estimated net USD flows would decrease by approximately 459 
(360) if the USD would weaken by 5%.
GRAPH 2
Operational transaction exposure effect of EUR  
and USD before hedging
–500
–400
–300
–200
–100
0
100
200
300
400
500
5
4
3
2
1
0
–1
–2
–3
–4
–5
MSEK
%
USD
% change
against SEK
EUR
Translation exposure
Group currency risk policy
Translation exposure risk is the risk that the value of the Group’s net invest-
ments in foreign currencies is negatively affected by changes in exchange rates. 
The Group’s worldwide presence creates a currency effect since the financial 
statements of entities with functional currencies other than SEK are translated 
to SEK when preparing the consolidated financial statements. The exposure is 
the net of assets and liabilities denominated in the specific currency. The effect 
of currency rate fluctuation on these net positions is the translation effect.
The following describes the Group’s general policies for managing  
translation exposure:
•	 Translation exposure should be reduced by matching assets and  
liabilities in the same currencies.
•	 The FRMC may decide to hedge part or all of the remaining  
trans­lation exposure. Any hedge of translation exposure shall qualify for 
hedge accounting in accordance with IFRS.  
Status at year-end
The Group uses loans and derivatives to reduce the translation exposure on net 
investments in USD and EUR in the consolidated financial statements and to 
reduce the exchange rate risk related to net assets in subsidiaries. These instruments 
are designated as net investment hedges in the consolidated financial statements.
The financial instruments shown in the table below are used to hedge 
EUR- and USD-denominated net assets.
Outstanding financial 
instruments related to 
translation exposure 
2014
2013
Fair value
Nominal  
amount
Fair value
Nominal 
amount
Derivatives
 
 
 
 
Assets
– 
– 
 –
 – 
Liabilities
MSEK –99 
MEUR 330   MSEK 222
MEUR 582
External loans
 
 
 
 
Loans in EUR 1)
MSEK –2 073 MEUR 1 452
MSEK –177
MEUR 1 428
Loans in USD 1)
MSEK –108 
MUSD 58 
MSEK –27
MUSD 58
1)	 In the balance sheet, loans designated as net investment hedges are reported at amortized 
cost and not at fair value. 
27.
Financial exposure and principles for control of financial risks, continued   
Status at year-end
The Group has continued to manage transaction exposures primarily by 
matching in- and outflows in the same currencies. Derivative instruments have 
only been used to hedge operational flows and have primarily been used to 
hedge transactions in AUD, EUR, GBP and USD. 
The net nominal amounts in the main currencies are shown in the table 
below. During 2014 Edwards was acquired by Atlas Copco. Edwards hedges 
future cash flows to a larger extent than the rest of the Atlas Copco Group which 
explains the increase in hedging volume in 2014.
Outstanding derivative instruments  
related to transaction exposure 
2014
Nominal amount, net
2013
Nominal amount, net
Foreign exchange forwards
 
 
AUD
MAUD –106
MAUD –52
EUR
MEUR 39 
MEUR 20
GBP
MGBP 150 
MGBP 9
USD
MUSD –537
MUSD –19
In the table below, fair value for all outstanding derivative instruments related to 
transaction exposure is shown. 
Outstanding derivative instruments  
related to transaction exposure 
2014
Fair value
2013
Fair value
Foreign exchange forwards
 
 
Assets
41
56
Liabilities
128 
5 
The largest operational surplus and deficit currencies are shown in Graph 1. The 
amounts presented in Graph 1 represent the estimate of the net amounts the 
Group has to exchange in different currencies. The estimates are based on the 
Group’s intercompany payments and on payment flows from customers and to 
suppliers in the most significant currencies. The operational transaction expo-
sure in MSEK is 10 401 (11 162) and is calculated as the net operational exposed 
cash flows.
GRAPH 1
Estimated operational transaction exposure in the  
Group’s most important currencies 2014 and 2013
–15 000
–12 000
–9 000
–6 000
–3 000
0
3 000
6 000
9 000
Other
ZAR
USD
SEK
RUB
PLN
NOK
KRW
HKD
GBP
EUR
CNY
CAD
BRL
AUD
MSEK
Transaction exposure
2014
–15 000
–12 000
–9 000
–6 000
–3 000
0
3 000
6 000
9 000
Other
ZAR
USD
SEK
RUB
PLN
NOK
HKD
GBP
EUR
CNY
CHF
CAD
BRL
AUD
MSEK
Transaction exposure
2013

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
104
Atlas Copco 2014
The Group’s loan portfolio is also exposed to movement in currency rates. The 
impact on the net income would however be very limited as substantially all of 
the Group’s loans are designated as hedges of net investments and the effect is 
accounted for in other comprehensive income (see also note 1, Accounting 
principles, Financial assets and liabilities).
Graph 3 indicates the Group’s sensitivity to currency translation effects 
when earnings of foreign subsidiaries are translated. The graph indicates for 
example that the translation effect on the Group’s pretax earnings would be 
–135 (–135) if SEK strengthen by 1%. A SEK weakening by 1% would affect 
the Group’s pretax earnings by 135 (135).
GRAPH 3
Translation effect on earnings before tax
–5
–4
–3
–2
–1
0
1
2
3
4
5
–675
–540
–405
–270
–135
0
135
270
405
540
675
Change in exchange rate SEK, %
Credit risk
Credit risk can be divided into operational and financial credit risk. These risks 
are described further in the following sections. The table below shows the total 
exposure related to assets classified as financial instruments as per December 31.
Credit risk
2014
2013
Loans and receivables
 
 
– trade receivables
19 959
16 642
– finance lease receivables
899
800
– other financial receivables
2 437
2 196
– other receivables
2 393
1 734
– accrued income
1 869
1 803
– cash and cash equivalents
9 404
17 633
Held-to-maturity investments
362
326
Available-for-sale investments
2
2
Derivatives
326
439
 
37 651
41 575
Operational credit risk
Group credit risk policy
Operational credit risk is the risk that the Group’s customers will not meet their 
payment obligations. The Group’s operational credit risk policy is that business 
areas, divisions and individual business units are responsible for the commercial 
risks arising from their operations. The operational credit risk is measured as the 
net aggregate value of receivables on a customer.
Status at year-end 
Since the Group’s sales are dispersed among many customers, of which no  
single customer represents a significant share of the Group’s commercial risk, 
the monitoring of commercial credit risks is primarily done at the business area, 
divisional or business unit level. Each business unit is required to have an 
approved commercial risk policy.
The Group has an in-house customer finance operation (Atlas Copco 
Customer Finance) as a means of supporting equipment sales. At December 31, 
the credit portfolio of the customer finance operations totaled approximately 
2 809 (2 707) consisting of 92 (100) reported as trade receivables, 836 (822) 
reported as finance lease receivables, and 1 881 (1 785) reported as other finan-
cial receivables. In addition, Atlas Copco Customer Finance also has non- 
cancelable operating lease contracts of 751 (641). There were no significant 
concentrations of customer risks in these operations. No customer represented 
more than 5% of the total outstanding receivables. For further information, 
see note 22.
Atlas Copco Customer Finance maintains collateral for its credit port­folio  
primarily through repossession rights in equipment. Business units  
may also, partly, transfer the commercial risk insurance to external entities 
(normally to an export credit agency). 
Provision for impairment of credit risks
The business units establish provisions for impairment that represent their esti-
mate of incurred losses in respect of trade and other receivables. The main com-
ponents of this provision are specific loss provisions corresponding to individu-
ally significant exposures and a collective loss component established for groups 
of similar assets in respect of losses that have not yet been identified. The collec-
tive loss provision is determined based on historical data of default statistics for 
similar financial assets. At year-end 2014, the provision for bad debt amounted 
to 4.5% (4.4) of gross total customer receivables. The following table presents the 
gross value of trade receivables by ageing category together with the related 
impairment provisions.
2014
2013
Trade receivables
Gross 
Impairment
Gross 
Impairment
Not past due
13 824
18
11 138
5
Past due but not impaired
 
 
 
 
0–30 days
3 452
–
2 916
– 
31–60 days
984
–
908
 –
61–90 days
480
–
544
 –
More than 90 days
1 695
–
1 410
– 
Past due and ­ 
individually impaired
 
 
 
 
0–30 days
76
5
140
2
31–60 days
40
5
43
3
61–90 days
37
14
21
5
More than 90 days
310
232
281
215
Collective impairment
 –
665
– 
529
 
20 898
939
17 401
759
The total estimated fair value of collateral for trade receivables amounted to 
598 (617). Approximately 60% of collateral consisted of repossession rights 
and 40% of export credit insurance. Based on historical default statistics and 
the diversified customer base, the credit risk is assessed to be limited. 
The gross amount of finance lease receivables amounted to 919 (822), of 
which 20 (22) have been impaired, and the gross amount of other financial 
receivables amounted to 2 489 (2 247), of which 52 (51) have been impaired. 
There are no significant amounts past due that are not impaired. The total  
estimated fair value of collateral to finance lease receivables and other finance 
receivables was 640 (575) and 1 900 (1 620), respectively, consisting primarily of 
repossession rights.
Financial credit risk
Group credit risk policy
Credit risk on financial transactions is the risk that the Group incurs losses as 
a result of non-payment by counterparts related to the Group’s investments, 
bank deposits or derivative transactions. The financial credit risk is measured 
differently depending on the transaction type.
Investment transactions
Efficient cash management systems should be maintained in order to minimize 
excess cash in operations where it cannot be invested or used to reduce interest-
bearing debt. Cash may only be invested if at least one of the credit ratings (as 
rated by Standard & Poor’s, Fitch Ratings or Moody’s) of the approved coun-
terpart or underlying investment is at least A-/A3 in case of financial counter-
parties and funds and BBB-/Baa3 in case of non-financial counterparties. 
Investments in structured financial products are not allowed even if they meet 
the rating criteria, unless approved by the FRMC. Other criteria which are 
considered when investing include limiting the exposure with any single coun-
terparty, the tenor, and liquidity of the investment. A list of approved counter-
parts with a maximum exposure limit for each counterpart is maintained and 
monitored.
27.
Financial exposure and principles for control of financial risks, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
105
Derivative transactions
As part of the Group’s management of financial risks, the Group enters into 
derivative transactions with financial counterparts. Such transactions may only 
be undertaken with approved counterparts for which credit limits have been 
established and with which ISDA (International Swaps and Derivatives Associa-
tion) master agreements and CSA (Credit Support Annex) agreements are in 
force. Derivative transactions may only be entered into by Group Treasury or  
in rare cases by another entity, but only after the approval of Group Treasurer. 
Atlas Copco primarily uses derivatives as hedging instruments and the policy 
allows only standardized (as opposed to structured) derivatives.
Status at year-end
At year-end 2014, the measured credit risk on derivatives, taking into account 
the market-to-market value and collaterals amounted to 182 (254).
The table below presents the Group’s total holdings in derivatives.
Outstanding derivative instruments related to  
financial exposures
2014
2013
Interest rate swaps
 
 
Assets
160
187
Liabilities
153
25
Foreign exchange forwards
 
 
Assets
125
195
Liabilities
374
237
Outstanding derivative instruments  
related to operational exposures
2014
2013
Assets
41
56
Liabilities
128
5
No financial assets or liabilities are offset in the balance sheet. Derivative 
instruments are subject to master netting agreements and the fair values of 
derivatives that are not offset in the balance sheet are 326 (439) for assets and 
655 (267) for liabilities. The table below shows derivatives covered by master 
netting agreements.
Outstanding net position for derivative instruments	
	
Gross
Offset  
in BS
Net in BS
Master 
netting 
agreement
Cash 
collateral
Net 
position
Assets
 
 
 
 
 
 
Derivatives
326
–
326
–131
–13
182
Liabilities
  
 
 
 
 
 
Derivatives
655
–
655
–131
–381
143
Other market and price risks
Commodity-price risk is the risk that the cost of direct and indirect materials 
could increase as underlying commodity prices rise in global markets. The 
Group is directly and indirectly exposed to raw material price fluctuations. 
Cost increases for raw materials and components often coincide with strong 
end-customer demand and are offset by increased sales to mining customers 
and compensated for by increased market prices. Therefore, the Group does 
not hedge commodity-price risks.
Fair value of financial instruments
In Atlas Copco’s balance sheet, financial instruments are carried at fair value 
or at amortized cost. The fair value is established according to a fair value hier-
archy consisting of three levels. These levels should reflect the extent to which 
fair value is based on observable market data or own assumptions. Below is a 
description of each level in the fair value hierarchy and also valuation methods 
used for each financial instrument. 
Level 1
Level 1 comprises financial instruments for which fair value is based on quoted 
(unadjusted) prices in active markets for identical assets or liabilities. A market 
is considered as active if quoted prices from an exchange, broker, industry 
group, pricing service, or supervisory body are readily and regularly available 
and those prices represent actual and regularly occurring market transactions 
at arm’s length. 
Level 2
Level 2 comprises financial instruments for which fair value is based on models 
that utilize observable data for the asset or liability other than the quoted 
prices included within Level 1 that are observable for the asset or liability, 
either directly (i.e. as prices) or indirectly (i.e. derived from prices). Example  
of observable data is data that can serve as a basis for assessing prices, such as 
market interest rates and yield curves. 
Level 3
Level 3 comprises financial instruments for which fair value is based on  
a valuation model, whereby significant input is based on unobservable  
market data. 
 
27.
Financial exposure and principles for control of financial risks, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
106
Atlas Copco 2014
Currency rates used in the financial statements
Year-end rate
Average rate
Value
Code
2014
2013
2014
2013
Australia
1
AUD  
6.41
5.77 
 
6.19
6.29 
Canada
1
CAD  
6.74
6.08 
 
6.24
6.32 
China
1
CNY  
1.26
1.07
 
1.12
1.06
EU
1
EUR  
9.54
8.96 
  
9.13
8.67 
Hong Kong
100
HKD  
101.07
84.11 
 
89.03
84.01 
United Kingdom
1
GBP  
12.18
10.74 
 
11.34
10.23 
U.S.A.
1
USD  
7.84
6.51 
 
6.91
6.52 
Valuation methods
Derivatives
Fair values of forward exchange contracts are calculated based on pre­vailing 
markets. Interest rate swaps are valued based on market rates and present 
value of future cash flows.
Interest-bearing liabilities
Fair values are calculated based on market rates and present value of future 
cash flows.
Finance leases and other financial receivables
Fair values are calculated based on market rates for similar contracts and  
present value of future cash flows.
The Group’s financial instruments by category
The carrying value for the Group’s financial instruments corresponds to fair 
value in all categories except for borrowings and held-to-maturity investments. 
See note 21 for additional information about the Group’s borrowings.  
The following table includes financial instruments at their fair value and 
by category.  
Financial instruments by fair value hierarchy
Fair value
Level 1
Level 2
Financial assets
192
–
192
Other receivables
1 414
–
1 414
Derivatives
160
–
160
Non-current  
financial assets
1 766
–
1 766
Trade receivables
19 903
–
19 903
Financial assets
2 150
–
2 150
Other receivables
2 393
–
2 393
Derivatives
166
–
166
Other accrued income
1 869
11
1 858
Cash and cash equivalent
9 404
–
9 404
Current financial assets
35 885
11
35 874
Financial assets
37 651
11
37 640
Borrowings
23 650
18 801
4 849
Other financial liabilities
218
–
218
Derivatives
159
–
159
Other liabilities
669
–
669
Non-current  
financial liabilities
24 696
18 801
5 895
Borrowings
2 284
–
2 284
Derivatives
496
–
496
Other accrued expenses
6 537
267
6 270
Trade payables
7 876
–
7 876
Other liabilities
3 061
–
3 061
Current financial liabilities
20 254
267
19 987
Financial liabilities
44 950
19 068
25 882
27.
Financial exposure and principles for control of financial risks, continued

FINANCIAL STATEMENTS, ATLAS COPCO GROUP
Atlas Copco 2014
107
Relationships 
The Group has related party relationships with the Company’s largest share-
holder, its associates and with its Board members and Group ­Management. 
The Company’s largest shareholder, Investor AB, controls approximately 22% 
of the voting rights in Atlas Copco.
The subsidiaries that are directly owned by the Parent Company are pre-
sented in note A21 to the financial statements of the Parent Company. Hold-
ing companies and operating subsidiaries are listed in note A22. Information 
about associated companies is found in note 14. Information about Board 
members and Group Management is presented on pages 60–63.
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 with 
which Atlas Copco may have transactions within the normal course of  
business. Any such transactions are made on commercial terms.
Transactions with associated companies
The Group sold various products and purchased goods through certain  
associated companies on terms generally similar to those prevailing with  
unrelated parties. 
The following table summarizes the Group’s related party transactions 
with its associates:
2014
2013
Revenues
46
79
Goods purchased
104
135
Service purchased
29
31
At Dec, 31:
 
 
Trade receivables
1
–
Trade payables
4
14
Other interest-bearing liabilities
17
16
Guarantees
10
10
	
	
Compensation to key management personnel
Compensation to the Board and to Group Management is disclosed in note 5. 
28.
Related parties
29.
Subsequent events
On February 9, Atlas Copco announced the decision to discontinue its  
Powercrusher business in which it manufactures and sells mobile crushers and 
screeners for quarrying, civil engineering and recycling. The Powercrusher 
business is part of the Mining and Rock Excavation Technique business area. 
It has about 70 employees and had revenues in 2014 of about MSEK 255 
(MEUR 28). 
Also on February 9, Atlas Copco sold its JC Carter business, which pro-
duces cryogenic submerged motor pumps, to Nikkiso Cryo Inc. of Las Vegas, 
Nevada, USA. Atlas Copco JC Carter had around 35 employees and the  
business was part of Atlas Copco’s Gas and Process division within the  
Compressor Technique business area.
On March 3, Atlas Copco acquired Kalibriercentrum Bayern, which is 
headquartered near Munich with an additional laboratory in Kiel, Germany. 
The company provides laboratory and field calibration and related services  
to customers in, for example, the motor vehicle and aerospace industry.  
The acquired  company has 27 employees and annual revenues of about 
MEUR 3 (MSEK 28) and becomes part of the service division in Atlas  
Copco’s Industrial Technique business area.

FINANCIAL STATEMENTS, PARENT COMPANY
108
Atlas Copco 2014
FINANCIAL STATEMENTS,  
PARENT COMPANY
Income statement
For the year ended December 31, 
Amounts in MSEK
Note
 2014
2013
Administrative expenses
A2
–464
–379
Other operating income
A3
193
337 
Other operating expenses
A3
–7
0
Operating loss
 
–278
–42
Financial income
A4
2 910
11 040
Financial expenses
A4
–1 903
–1 938
Profit after financial items
 
729
9 060
Appropriations
A5
3 860
5 070
Profit before tax
 
4 589
14 130
Income tax 
A6
–797
–855
Profit for the year
 
3 792
13 275
Statement of comprehensive income
For the year ended December 31, 
Amounts in MSEK
Note
 2014
2013
Profit for the year
 
3 792
13 275
Other comprehensive income
 
 
 
Items that may be reclassified 
subsequently to profit or loss
 
 
 
Translation of net investment
 
1 911
1 108
Cash flow hedges
 
130
–54
Income tax relating to items that may be 
reclassified
 
–449
–232
Other comprehensive income of the 
year, net of tax
 
–1 592
–822
Total comprehensive income  
for the year
 
2 200
12 453
Balance sheet
As at December 31, 
Amounts in MSEK
Note
 2014
2013
ASSETS
 
 
 
Non-current assets
 
 
 
Intangible assets
A7
10
15
Tangible assets
A8
33
30
Financial assets 
 
 
 
Shares in Group companies
A10, A21
93 907
93 004
Other financial assets
A11
366
721
Total non-current assets
 
94 316
93 770
Current assets
 
 
 
Income tax receivable
 
20
95
Other receivables
A12
3 289
6 729
Cash and cash equivalents
A13
5 153
13 302
Total current assets
 
8 462
20 126
TOTAL ASSETS
 
102 778
113 896
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
 
274
1 866
Retained earnings
 
33 449
26 053
Profit for the year
 
3 792
13 275
Total non-restricted equity
 
37 515
41 194
TOTAL EQUITY
 
43 300
46 979
PROVISIONS
 
 
 
Post-employment benefits
A15
127
96
Other provisions
A16
222
249
Deferred tax liabilities
A9
4
452
Total provisions
 
353
797
LIABILITIES
 
 
 
Non-current liabilities
 
 
 
Borrowings
A17
48 353
39 432
Other liabilities
 
157
24
Total non-current liabilities
 
48 510
39 456
Current liabilities
 
 
 
Borrowings
A17
9 335
25 547
Other liabilities
A18
1 280
1 117
Total current liabilities
 
10 615
26 664
TOTAL EQUITY AND LIABILITIES
 
102 778
113 896
Assets pledged
A20
502
198
Contingent liabilities
A20
9 579
7 570

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
109
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, 2014
1 213 552 913
786
4 999
1 866
39 328
46 979
Total comprehensive income for the year
 
 
 
–1 592
3 792
2 200
Dividends
 
 
 
 
–6 681
–6 681
Divestment series A shares
4 303 105
  
 
  
863
863
Divestment series B shares
144 000
 
 
 
27
27
Share-based payment, equity settled
 
 
 
 
 
 
– expense during the year
 
 
 
 
32
32
– exercise of options
 
 
 
 
–119
–119
Closing balance, Dec. 31, 2014
1 218 000 018
786
4 999
274
37 241
43 300
Opening balance, Jan. 1, 2013
1 213 422 175
786
4 999
2 688
32 764
41 237
Total comprehensive income for the year
 
 
 
–822
13 275
12 453
Dividends
 
 
  
 
–6 668
–6 668
Acquisition series A shares
–2 148 475
 
 
 
–390
–390
Divestment series A shares
2 106 312
 
 
 
385
385
Divestment series B shares
172 901
 
 
 
29
29
Share-based payment, equity settled
 
 
  
 
 
 
– expense during the year
 
 
 
 
39
39
– exercise of options
 
 
 
 
–106
–106
Closing balance, Dec. 31, 2013
1 213 552 913
786
4 999
1 866
39 328
46 979
  See note A14 for additional information.
Statement of cash flows
For the year ended December 31, 
Amounts in MSEK
 2014
2013
Cash flows from operating activities
 
 
Operating loss
–278
–42
Adjustments for:
 
 
Depreciation
14
14
Capital loss and other non-cash items
–236
–177
Operating cash deficit
–500
–205
Net financial items received
1 498
9 315
Group contributions received
3 815
5 982
Taxes paid
–725
–1 064
Cash flow before change in working capital
4 088
14 028
Change in
 
 
Operating receivables
3 457
–1 550
Operating liabilities
–5 127
5 391
Change in working capital
–1 670
3 841
Net cash from operating activities
2 418
17 869
For the year ended December 31, 
Amounts in MSEK
 2014
2013
Cash flow from investing activities
 
 
Investments in tangible assets
–12
–1
Investments in subsidiaries
–1 266
–122
Repayments/investments in financial assets
331
–370
Net cash from investing activities
–947
–493
Cash flow from financing activities
 
 
Dividends paid
–6 681
–6 668
Repurchase and divestment of own shares
890
24
Change in interest-bearing liabilities
–3 829
–5 009
Net cash from financing activities
–9 620
–11 653
Net cash flow for the year
–8 149
5 723
Cash and cash equivalents, Jan. 1
13 302
7 579
Net cash flow for the year
–8 149
5 723
Cash and cash equivalents, Dec. 31
5 153
13 302

FINANCIAL STATEMENTS, PARENT COMPANY
110
Atlas Copco 2014
NOTES TO THE PARENT COMPANY 
FINANCIAL STATEMENTS 
MSEK unless otherwise stated
A1.
Significant accounting principles
Atlas Copco AB is the ultimate Parent Company of the Atlas Copco Group 
and is headquartered in Nacka, Sweden. Its’ operations include administrative 
functions, holding company functions as well as part of Group Treasury.  
The financial statements of Atlas Copco AB have been prepared in accordance 
with the Swedish Annual Accounts Act and the recommendation RFR 2, 
“Accounting for Legal Entities”, hereafter referred to as “RFR 2”, issued by 
the Swedish Financial Reporting Board. In accordance with RFR 2, parent 
companies that issue consolidated financial statements according to Interna-
tional Financial Reporting Standards (IFRS), as endorsed by the European 
Union, shall present their financial statements in accordance with IFRS, to the 
extent these accounting principles comply with the Swedish Annual Accounts 
Act and may use exemptions from IFRS provided by RFR 2 due to Swedish 
accounting or tax legislation. 
The financial statements are presented in Swedish kronor (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 to the Group’s consolidated financial statements, except  
for those disclosed in the following sections.
For discussion regarding accounting estimates and judgments,  
see page 76.
Subsidiaries
Participations in subsidiaries are accounted for by the Parent Company  
at historical cost. The carrying amounts of participations in subsidiaries are 
reviewed for impairment in accordance with IAS 36, Impairment of Assets. 
See the Group’s accounting policies, Impairment of financial assets, for fur-
ther 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 accounted for as 
operating 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 com-
pared to IAS 19 are the way discount rates are fixed, that the calculation of 
defined benefit obligations is based on current salary levels, without consider-
ation 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 employees 
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 companies. This 
vesting cost is accrued over the same period as in the Group and with a corre-
sponding 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 at fair value. They are reported as contingent liabilities, 
unless it becomes probable that the guarantees will lead to payments. In such 
case, provisions will be recorded. 
Hedge accounting
External 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 
balance sheet 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.
Group and shareholders’ contributions 
In Sweden, Group contributions are deductible for tax purposes but share-
holders’ contributions are not. Group contributions are recognized as appro-
priations in the income statement. Shareholders’ contributions are recognized 
as an increase of Shares in Group companies and tested for impairment.

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
111
A2. 
Employees and personnel expenses and 
remunerations to auditors
 
Average number of employees
2014
2013
Women
Men
Total 
Women
Men
Total 
Sweden
61
56
117
60
49
109
 
Women in Atlas Copco Board  
and Management, %
Dec. 31, 2014
Dec. 31, 2013
Board of Directors excl. union representatives
33
30
Group Management
22
22
Salaries and other remuneration
2014
2013
Board members  
and Group 
Management 1)
Other  
employees
Board members  
and Group 
Management 1)
Other  
employees
Sweden
69
106
42
87
of which variable 
compensation
14
 
7
 
1) Includes 8 (9) Board members who receive fees from Atlas Copco AB as well as the 
President and CEO and 7 (6) members of Group Management who are employed by 
and receive salary and other remuneration 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 5 of the consolidated financial statements.
Pension benefits and other social costs
2014
2013
Contractual pension benefits for Board ­members 
and Group Management
10
8
Contractual pension benefits for other employees 
22
21
Other social costs
73
61
Total
105
90
Capitalized pension obligations to Board  
members and Group Management
15
14
Remunerations to auditors
Audit fees and consultancy fees for advice or assistance other than audit, were 
as follows:
2014
2013
Deloitte 
 
 
– audit fee
6
6
– audit activities other than audit assignment
1
1 
– other services,tax
2
3
Total
9
10
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.
Audit activities other than the audit assignment refer for example to  
comfort letters and the limited assurance report on Atlas Copco’s
sustainability report.
Tax services include both tax consultancy services and tax compliance  
services.
At the Annual General Meeting 2014, Deloitte was elected as auditor for 
the Group until the Annual General Meeting 2015.
	
A4.
Financial income and expenses
 
Financial income and expenses
2014
2013
Interest income
 
 
– cash and cash equivalents
26
41
– receivables from Group companies
298
233
Dividend income from Group companies
2 525
10 227
Capital gain
8
512
Change in fair value – other assets
–
3
Foreign exchange gain, net
53
24
Financial income
2 910
11 040
Interest expense
  
  
– borrowings
–644
–649
– derivatives for fair value hedges
–69
–185
– liabilities to Group companies
–817
–855
– pension provisions, net
–1
–1
– other
–1
–4
Impairment loss
 
 
– writedown of shares in Group companies
–371
–244
Financial expenses
–1 903 
–1 938
Financial income, net
1 007
9 102
The following table presents the net gain or loss by category of financial 
instruments.
2014
2013
Net gain/loss on
 
 
– loans and receivables, incl. bank deposits
377
298
– other assets
–
3
– other liabilities
–1 463
–1 509
– derivatives for fair value hedges
–69
–185
Profit from shares in Group companies
2 162
10 495
Total
1 007
9 102
For further information about the hedges, see note 27 of the consolidated 
financial statements.
A5.
Appropriations
 
Appropriations
2014
2013
Group contributions paid
–328
–259
Group contributions received
4 188
4 074
Reversal of accrual fund
–
1 255
Total 
3 860
5 070
A3.
Other operating income and expenses
 
2014
2013
Commissions received
151
171 
Other operating income 1)
42
160
Exchange-rate differences, net
–
6
Total other operating income
193
337
Exchange-rate differences, net
–7
–
Total other operating expenses 
–7
–
1) Other operating income refers to insurance reimbursements.

FINANCIAL STATEMENTS, PARENT COMPANY
112
Atlas Copco 2014
2014
2013
Less than one year
57
38
Between one and five years
212
140
More than five years
183
74
Total
452
252
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 38 (39). Future payments for non-cancelable leasing con-
tracts amounted to 452 (252) and fall due as follows:
A8.
Tangible assets
2014
2013
Buildings
 and land
Machinery 
and equipment
Total 
Buildings
 and land
Machinery 
and equipment
Total 
Accumulated cost
 
 
 
 
 
 
Opening ­balance, Jan. 1
23
39
62
23
39
62
Investments
4
8
12
–
–
–
Disposals
–
–1
–1
– 
–
–
Closing balance, Dec. 31
27
46
73
23
39
62
Accumulated depreciation
 
  
 
 
 
 
Opening ­balance, Jan. 1
5
27
32
3
21
24
Depreciation for the year
3
6
9
2
6
8
Disposals
 –
–1
–1
 – 
–  
–  
Closing balance, Dec. 31
8
32
40
5
27
32
Carrying amount
 
 
 
 
 
 
Closing balance, Dec. 31
19
14
33
18
12
30
Opening ­balance, Jan. 1
18
12
30
20
18
38
A6.
Income tax
 
2014
2013
Current tax
–796
–845
Deferred tax
–1
–10
Total
–797
–855
Profit before taxes
4 589
14 130
The Swedish corporate tax rate, %
22.0
22.0
National tax based on profit before taxes
–1 010
–3 109
Tax effects of:
 
 
Non-deductible expenses
–249
–234
Tax exempt income
557
2 363
Deductible expenses, not recognized in  
Income statement
19
144
Taxable income, not recognized in  
Income statement
–97
–
Controlled foreign company taxation
–12
–33
Adjustments from prior years
–5
14
Total
–797
–855
Effective tax in %
17.4
6.0
The Parent Company’s effective tax rate of 17.4% (6.0) is primarily affected by 
non-taxable income  such as dividends from Group companies.
A7.
Intangible assets
 
Capitalized expenditures  
for computer programs
2014
2013
Accumulated cost
 
 
Opening ­balance, Jan. 1
36
36
Investments
–
–
Closing balance, Dec. 31
36
36
Accumulated depreciation
 
 
Opening ­balance, Jan. 1
21
16
Depreciation for the year
5
5
Closing balance, Dec. 31
26
21
Carrying amount
 
 
Closing balance, Dec. 31
10
15
Opening balance, Jan 1
15
20

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
113
A9.
Deferred tax assets and liabilities
2014
2013
Assets
Liabi- 
lities
Net  
balance
Assets
Liabi- 
lities
Net  
balance
Fixed assets
1
–
1
1
–
1
Post-employment 
benefits
29
–
29
21
–
21
Other provisions
10
–
10
14
–
14
Non-current  
liabilities
– 
–44
–44
–
–488
–488
Total
40
–44
–4
36
–488
–452
The following reconciles the net balance of deferred taxes at the beginning of 
the year to that at the end of the year:
2014
2013
Net balance, Jan. 1
–452
–674
Charges to other comprehensive income
449
232
Charges to profit for the year
–1
–10
Net balance, Dec. 31
–4
–452
A10.
Shares in Group companies
2014
2013
Accumulated cost
 
 
Opening balance, Jan. 1
93 772
93 427
Investments
79
38
Net investment hedge
–121
208
Shareholders’ contribution
1 338
135
Divestments
–22
–36
Closing balance, Dec. 31
95 046
93 772
Accumulated write-up
 
 
Opening balance, Jan. 1
600
600
Closing balance, Dec. 31
600
600
Accumulated write-down
 
 
Opening balance, Jan. 1
–1 368
–1 124
Write-down
–371
–244
Closing balance, Dec. 31
–1 739
–1 368
Total
93 907
93 004
The write-down of shares in Group companies primarily refers to Atlas Copco 
Powercrusher within business area Mining and Rock Excavation Technique. 
For further information about Group companies, see note A21.
A11.
Other financial assets
2014
2013
Receivables from Group companies
6
20
Derivatives
 
 
– not designated for hedge accounting
–
3
– designated for hedge accounting
160
186
Endowment insurances
110
78
Financial assets at fair value through  
profit and loss
–
368
Financial assets classified as loans  
and receivables
  
 
– other financial receivables
90
66
Closing balance, Dec. 31
366
721
Endowment insurances relate to defined contribution pension plans and are 
pledged to the pension beneficiary (see note A15 and A20). Previous year’s bal-
ance for financial assets at fair value through profit and loss included invest-
ments in corporate bonds which have been sold during 2014.
A12.
Other receivables
2014
2013
Receivables from Group companies
2 664
6 284
Derivatives       
  
  
– not designated for hedge accounting
134
186
– designated for hedge accounting
17
63
Financial assets classified as loans and  
receivables
  
 
– other receivables
400
128
Prepaid expenses and accrued income
74
68
Closing balance, Dec. 31
3 289
6 729
Other receivables of 400 (128) mainly refers to CSA agreements used to limit 
the credit risk on derivative transactions. 
A13.
Cash and cash equivalents 
2014
2013
Cash and cash equivalents classified as  
loans and receivables
 
 
– cash
2 706
2 438
– cash equivalents
2 447
10 864
Closing balance, Dec. 31
5 153
13 302
	
	
The Parent Company’s guaranteed, but unutilized, credit lines equalled to
 6 298  (5 734).
A14.
Equity
For information on share transactions and mandates approved by the Annual 
General Meeting, see note 20 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.

FINANCIAL STATEMENTS, PARENT COMPANY
114
Atlas Copco 2014
A15.
Post-employment benefits
2014
2013
Defined contribution 
pension plan
Defined benefit 
pension plan
Total
Defined contribution  
pension plan
Defined benefit 
pension plan
Total
Opening balance, Jan. 1
78
18
96
56
19
75
Provision made
38
–
38
22
–
22
Provision used
–6
–1
–7
–
–1
–1
Closing balance, Dec. 31
110
17
127
78
18
96
The Parent Company has endowment insurances of 110  (78) 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 three defined benefit pension plans. The ITP plan is a final salary pension plan covering the majority of salaried employees in Atlas 
Copco AB which benefits are secured through the Atlas Copco pension trust. The second plan relates to a group of employees earning more than 10 income base 
amounts who have opted out from the ITP plan. This plan is insured. The third plan relates to retired former senior employees. These pension arrangements are 
provided for.
2014
2013
Funded  
pension
Unfunded  
pension
Total
Funded  
pension
Unfunded  
pension
Total
Defined benefit obligations
133
17
150
130
18
148
Fair value of plan assets
–262
–
–262
–236
–
–236
Present value of net obligations
–129
17
–112
–106
18
–88
Not recognized surplus
129
–
129
106
–
106
Net amount recognized in balance sheet
–
17
17
–
18
18
Reconciliation of defined benefit obligations
Funded  
pension
Unfunded  
pension
Total
Funded  
pension
Unfunded  
pension
Total
Defined benefit obligations at Jan. 1
130
18
148
131
19
150
Service cost
5
2
7
4
2
6
Interest expense
4
–
4
4
–
4
Other changes in obligations
4
–
4
1
–
1
Benefits paid from plan
–10
–3
–13
–10
–3
–13
Defined benefit obligations at Dec. 31
133
17
150
130
18
148
Reconciliation of plan assets
Funded  
pension
Unfunded  
pension
Total
Funded  
pension
Unfunded  
pension
Total
Fair value of plan assets at Jan. 1
236
–
236
221
–
221
Return on plan assets
26
–
26
15
–
15
Payments
–
–
–
–
–
–
Fair value of plan assets at Dec. 31
262
–
262
236
–
236

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
115
A16.
Other provisions
2014
2013
Opening balance, Jan. 1
249
307
During the year
 
 
– provisions made
145
16
– provisions used
–168
–74
– provisions reversed
–4
–
Closing balance, Dec. 31
222
249
Other provisions include primarily provisions for costs related to employee 
option programs accounted for in accordance with IFRS 2 and UFR 7.
A15.
Post-employment benefits, continued
2014
2013
Pension commitments provided 
for in the balance sheet
 
 
Costs excluding interest
10
11
Interest expense
1
1
Total
11
12
Pension commitments provided for through 
insurance contracts
 
 
Service cost
13
16
Total
13
16
 
 
 
Reimbursement from the Atlas Copco  
pension trust
–
–
 
 
 
Net cost for pensions, excluding taxes 
24
28
 
 
 
Special employer’s contribution
8
10
Credit insurance costs
– 
–
Total
32
38
Pension expenses for the year included within administrative expenses 
amounted to 32 (29) of which the Board members and Group  
Management 10 (8) and others 22 (21). 
The Parent Company’s share in plan assets fair value in the Atlas Copco  
pension trust amounts to 262 (236) and is allocated as follows:
2014
2013
Equity securities
28
21
Bonds
184
175
Real estate
50
40
Cash and cash equivalents
–
–
Total
262
236
The plan assets of the Atlas Copco pension trust are not included in the  
financial assets of the Parent Company. 
The return on plan assets in the Atlas Copco pension trust amounted to 
11.3 % (7.2).
The Parent Company adheres to the actuarial assumptions used by The 
Swedish Pension Registration Institute (PRI) i.e. discount rate 3.8% (3.8).
The Parent Company estimates 13 will be paid to defined benefit ­pension 
plans during 2015.

FINANCIAL STATEMENTS, PARENT COMPANY
116
Atlas Copco 2014
A17.
Borrowings
2014
2013
Maturity
Repurchased 
nominal amount
Carrying 
amount
Fair value
Carrying 
amount
Fair value
Non-current
 
 
 
 
 
 
Medium Term Note Program MEUR 600
2014
MEUR 260
–
–
3 336
3 132
Medium Term Note Program MEUR 500
2019
 
4 458
5 076
4 458
4 771
Medium Term Note Program MEUR 500
2023
 
4 528
5 191
4 454
4 424
Capital market borrowings MUSD 800
2017
 
6 635
7 088
5 689
6 220
Capital market borrowings MUSD 150
2019
MUSD 7.5
973
1 446
973
1 246
Bilateral borrowings EIB MEUR 213
2014
 
–
–
2 008
1 908
Bilateral borrowings EIB MEUR 275
2019
 
2 329
2 693
2 329
2 543
Bilateral borrowings NIB MEUR 100
2014
 
–
–
943
898
Bilateral borrowings NIB MSEK 705
2014
 
–
–
705
714 
Bilateral borrowings NIB MEUR 180
2024
 
1 696
1 803
–
–
Non-current borrowings from Group companies
 
 
27 734
29 130
19 881
21 072
Less current portion of long-term borrowings
 
 
–
–
–5 344
–5 040
Total non-current borrowings
 
 
48 353
52 427
39 432
41 888
Current
 
 
 
 
 
 
Current portion of long-term borrowings
 
 
–
–
5 344
5 040
Current borrowings from Group companies
 
 
9 335
9 382
20 203
20 204
 Total current borrowings
 
 
9 335
9 382
25 547
25 244
Closing balance, Dec. 31
 
 
57 688
61 809
64 979
67 132
Whereof external borrowings
 
 
20 619
23 297
24 895
25 856
The difference between carrying value and fair value relate to the measurement method as certain liabilities are reported at amortized cost and not at fair value.
During 2014 two loans matured, a Medium Term Note Program of MEUR 600, of which MEUR 260 had previously been repurchased, as well as a Bilateral 
borrowing of MEUR 213. At the end of 2014 two Bilateral loans provided by NIB amounting to MEUR 100 and MSEK 705, respectively, were refinanced in 
advance by a new Bilateral loan provided by NIB amounting to MEUR 180, maturity 2024.
Since the balance sheet date, Atlas Copco AB has entered into a loan agreement with EIB amounting to MEUR 300. Currently, the facility is undrawn.  
The availability period for drawings under the facility is one year (until January 2016). If no drawings are made by then, the facility will be cancelled.
A17.
Borrowings, continued
The following table shows the maturity structure of the Parent Company’s 
external borrowings and includes the effect of interest rate swaps.
 
Maturity
Fixed
Floating
Carrying    
amount
Fair value
2017
4 976
1 659
6 635
7 088
2019
7 760
–
7 760
9 215
2023
4 528
–
4 528
5 191
2024
–
1 696
1 696
1 803
Total
17 264
3 355
20 619
23 297
A18.
Other liabilities
2014
2013
Accounts payable
40
18
Liabilities to Group companies
383
369
Derivatives
 
 
– not designated for hedge accounting
337
243
– designated for hedge accounting
99
–
Other financial liabilities
 
 
– other liabilities
35
49
Accrued expenses and prepaid income
386
438
Closing balance, Dec. 31
1 280
1 117
Accrued expenses include items such as social costs, vacation pay liability, and 
accrued interest.

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
117
Parent Company borrowings
Atlas Copco AB had MSEK 20 619 (24 895) of external borrowings and 
MSEK 37 069 (40 084) of internal borrowings at December 31, 2014. Deriva-
tive instruments are used to manage the currency and interest rate risk in line 
with policies set by the Financial Risk Management Committee, see note 27 in 
the consolidated financial statements. 
Hedge accounting
The Parent Company hedges shares in subsidiaries through external loans of 
MEUR 1 452 (1 428) and MUSD 142 (142), and derivatives of MEUR 330 
(582). The deferral hedge accounting of the external loans is based on a RFR 
2 exemption. The derivatives are accounted as fair value hedges. 
The interest rate risk is managed with interest rate swaps, designated as 
fair value hedges and cash flow hedges. Note 27 of the consolidated financial 
statements include fair value of these swaps and further details.
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 Com-
pany’s investments, bank deposits or derivative transactions. For further infor-
mation regarding investment and derivative transactions, see note 27 of the 
consolidated financial statements.
The table below shows the actual exposure of financial instruments as per 
December 31.
Financial credit risk
2014
2013
Cash and cash equivalents
5 153
13 302
Receivables from Group companies
2 670
6 304
Derivatives 
311
438
Other
564
262
Total
8 698
20 306
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 27 of the  
consolidated financial statements.
A20. Assets pledged and contingent liabilities
2014
2013
Assets pledged for derivative contracts
 
 
Other receivables
392
120
Assets pledged for pension commitments
 
 
Endowment insurances
110
78
Total
502
198
Contingent liabilities
 
 
Sureties and other contingent liabilities
 
 
– for external parties
3
3
– for Group companies
9 576
7 567
Total
9 579
7 570
Other receivables pledged includes credit support annex (CSA) used by parties 
to derivative contracts to limit the credit risk. Sureties and other contingent 
liabilities include bank and commercial guarantees and performance bonds. 
Sureties and other contingent liabilities  for Group companies has increased 
since Atlas Copco UK Holding Ltd and Atlas Copco North America LLC 
have new financial guarantees for 99.5 MUSD and 99.0 MUSD.
Valuation methods
Derivatives
Fair values of forward exchange contracts are calculated based on pre­vailing 
markets. Interest rate swaps are valued based on market rates and present 
value of future cash flows.
Interest-bearing liabilities
Fair values are calculated based on market rates and present value of future 
cash flows.
The Parent Company’s financial instruments by category
The carrying value for the Parent Company’s financial instruments corre-
sponds to fair value in all categories except for borrowings.  
See A17 for additional information. 
A21. Directly owned subsidiaries
2014
2013
Number of 
shares
Percent  
held
Carrying 
value
Number of 
shares
Percent  
held
Carrying 
value
Directly owned product companies
 
 
 
 
 
 
Atlas Copco Airpower n.v., Wilrijk
76 415
100
45 988
76 415
100
45 972
Atlas Copco Construction Technique Brasil Ltda, São Paulo
25 777 505
100
619
25 777 505
100
619
Atlas Copco Craelius AB, 556041-2149, Märsta
200 000
100
53
200 000
100
45
Atlas Copco GIA AB, 556040-0870, Grängesberg
50 000
100
152
50 000
100
176
Atlas Copco MAI GmbH, Feistritz an der Drau
1
100
34
1
100
34
Atlas Copco Meyco AG, Zurich
9 000
100
64
5 000
100
34
Atlas Copco Rock Drills AB, 556077-9018, Örebro
1 000 000
100
452
1 000 000
100
432
Atlas Copco Secoroc AB, 556001-9019, Fagersta
2 325 000
100
178
2 325 000
100
168
Atlas Copco Welltech AB, 556577-2240, Jonsered
20 000
100
78
–
–
–
Construction Tools AB, 556069-7228, Kalmar
60 000
100
2 047
60 000
100
2 044
Dynapac Compaction Equipment AB, 556068-6577, Karlskrona
80 000
100
1 105
80 000
100
1 105
Gazcon A/S, Lynge
500
100
23
500
100
23
A19.
Financial exposure and principles for control of financial risks

FINANCIAL STATEMENTS, PARENT COMPANY
118
Atlas Copco 2014
2014
2013
Number of 
shares
Percent  
held
Carrying 
value
Number of 
shares
Percent  
held
Carrying 
value
Directly owned customer centers
 
 
 
 
 
 
Atlas Copco (Cyprus) Ltd., Nicosia
99 998
100
0
99 998
100
0
Atlas Copco Argentina S.A.C.I., Buenos Aires
525 000
75/1001)
12
525 000
75/1001)
11
Atlas Copco (India) Ltd., Mumbai
21 731 582
96
1 815
21 731 128
96
1 815
Atlas Copco (Ireland) Ltd., Dublin
250 000
100
28
250 000
100
28
Atlas Copco (Malaysia), Sdn. Bhd., Kuala Lumpur
1 000 000
100
14
1 000 000
100
14
Atlas Copco (Philippines) Inc., Paranaque
121 995
100
6
121 995
100
6
Atlas Copco (Switzerland) AG., Studen/Biel
8 000
100
52
8 000
100
51
Atlas Copco (South East Asia) Pte.Ltd., Singapore
1 500 000
100
6
1 500 000
100
6
Atlas Copco Brasil Ltda., São Paulo
70 358 841
100
238
70 358 841
100
237
Atlas Copco Chilena S.A.C., Santiago
24 988
100
9
24 998
100
9
Atlas Copco CMT Sweden AB, 556100-1453, Nacka
103 000
100
98
103 000
100
94
Atlas Copco Compressor AB, 556155-2794, Nacka
60 000
100
12
60 000
100
11
Atlas Copco Equipment Egypt S.A.E., Cairo
5
0/1001)
2
5
0/1001)
2
Atlas Copco Ges.m.b.H., Vienna
1
100
8
1
100
333
Atlas Copco Indoeuropeiska AB, 556155-2760, Nacka
3 500
100
25
3 500
100
25
Atlas Copco Eastern Africa Ltd., Nairobi
482 999
100
6
482 999
100
6
Atlas Copco KK, Tokyo
375 001
100
30
375 001
100
29
Atlas Copco Kompressorteknik A/S, Copenhagen
4 000
100
3
4 000
100
3
Atlas Copco Maroc SA., Casablanca
3 854
96
2
3 854
96
2
Atlas Copco Services Middle East OMC, Bahrain
500
100
5
500
100
4
Atlas Copco Venezuela S.A., Caracas
25 812 000
100
42
38 000
100
15
Chicago Pneumatic Construction Equipment AB,  
556197-5375, Stockholm
30 000
100
29
30 000
100
31
CP Scanrotor Aktiebolag, 556103-0080, Tanum
–
–
–
1 500
100
2
Servatechnik AG., Oftringen
3 500
100
28
3 500
100
28
Soc. Atlas Copco de Portugal Lda., Lisbon
1
100
25
1
100
25
AGRE Kompressoren GmbH, Garsten-St. Ulrich
200 000
100
7
200 000
100
29
Directly owned holding companies and others
 
 
 
 
 
 
Atlas Copco A/S, Langhus
2 500
100
40
2 498
100
39
Atlas Copco Beheer b.v., Zwijndrecht
15 712
100
2 429
15 712
100
2 411
Atlas Copco Customer Finance Chile Ltd., Santiago
6 317 500
0/1001)
0
6 317 500
95/1001)
0
Atlas Copco Deutschland GmbH , Essen
1
100
0
–
–
–
Atlas Copco Dynapac AB, 556655-0413, Nacka
86 993 823
100
3
86 993 823
100
0
Atlas Copco Finance Belgium bvba, Wilrijk
1
0/1001)
0
1
0/1001)
0
Atlas Copco Finance Europe n.v., Wilrijk
1
0/1001)
1
1
0/1001)
1
Atlas Copco France Holding S.A., St. Ouen l’Áumône
278 255
100
257
278 255
100
255
Atlas Copco Holding GmbH, Essen
2
100
1 049
1
100
1 044
Atlas Copco Järla Holding AB, 556062-0212, Nacka
95 000
100
20 570
95 000
100
20 570
Atlas Copco Lugnet Treasury AB, 556277-9537, Nacka
700 500
100
723
700 500
100
721
Atlas Copco Sickla Holding AB, 556309-5255, Nacka
1 000
100
10 630
1 000
100
10 615
Atlas Copco UK Holdings Ltd., Hemel Hempstead
150 623 666
100
1 468
50 623 666
100
310
Atlas Copco USA Holdings Inc., Parsippany NJ
100 
100
3 429
100
100
3 415
Dynapac AB, 556655-0421, Karlskrona
75 000
100
0
–
–
–
Econus S A, Montevideo
21 582 605
100
17
21 582 605
100
17
Industria Försäkrings AB, 516401-7930, Nacka
300 000
100
30
300 000
100
30
Oy Atlas Copco AB, Vantaa
150
100
32
150
100
32
Power Tools Distribution n.v., Hoeselt
1
0/1001)
1
1
0/1001)
1
2 (16) dormant companies
 
100
12
 
100
33
Net investment hedge
 
  
–79
 
 
42
Carrying amount, Dec. 31
 
 
93 907
 
 
93 004
1) First figure; percentage held by Parent Company, second figure; percentage held by Atlas Copco Group.
A21. Directly owned subsidiaries, continued

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
119
A22. Related parties
Relationships
The Parent Company has related party relationships with its largest share-
holder, its subsidiaries and its associates and with its Board members and 
Group Management.
The Parent Company’s largest shareholder, Investor AB, controls approx-
imately 22 % of the voting rights in Atlas Copco AB.
The subsidiaries that are directly owned by the Parent Company are pre-
sented 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 60–63.
 
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 com­mercial terms. 
The following details directly and indirectly owned holding and operational subsidiaries (excluding branches), presented by country of incorporation.
Country
Company
Location (City)
Country
Company
Location (City)
Algeria
SPA Atlas Copco Algérie
Algiers
Angola
Atlas Copco Angola Lda
Luanda
Argentina
Atlas Copco Argentina S.A.C.I
Buenos Aires
Atlas Copco Servicios Mineros S.A.
Buenos Aires
Australia
Atlas Copco Australia Pty Limited
Blacktown
Atlas Copco Customer Finance  
Australia Pty Limited 
Blacktown
Atlas Copco South Pacific Holdings Pty Ltd.
Blacktown
Henrob (UK) Pty Ltd.
Brisbane
Austria
AGRE Kompressoren GmbH
Garsten-st. Ulrich
Atlas Copco Ges.m.b.H.
Vienna
Atlas Copco Powercrusher GmbH
St. Valentin
Bahrain
Atlas Copco Services Middle East OMC
Bahrain
Bangladesh
Atlas Copco Bangladesh Ltd.
Dhaka
Belgium
Atlas Copco Airpower n.v.
Wilrijk
Atlas Copco Belgium n.v.
Overijse
Atlas Copco Business Services n.v.
Wilrijk
Atlas Copco Finance Belgium BVBA
Wilrijk
Atlas Copco Finance Europe n.v.
Wilrijk
Atlas Copco Rental Europe n.v.
Wilrijk
EDMAC Europe n.v.
Wilrijk
International Compressor Distribution n.v
Wilrijk
Power Tools Distribution n.v.
Hoeselt
Edwards Vacuum S.A.
Estaimpuis
Bolivia
Atlas Copco Boliviana SA
La Paz
Bosnia and 
Herzegovina Atlas Copco BH d.o.o.
Sarajevo
Botswana
Atlas Copco (Botswana) (Pty) Ltd.
Gaborone
Brazil
Atlas Copco Brasil Ltda
Barueri 
Atlas Copco Construction Technique  
Brasil Ltda
São Paulo
Cavaletti Equipamentos e Servicos Ltda
Valinhos
Chicago Pneumatic Brasil Ltda
Barueri 
Edwards Vacuo Ltda
São Paulo
Schucker do Brazil Ltda
São José dos Pinais
Synatec Group of South America Inc.
São Paulo
Bulgaria
Atlas Copco Bulgaria EOOD
Sofia
Atlas Copco Lifton EOOD
Roseau
Burkina Faso Atlas Copco Burkina Faso SARL
Ouagadougou
Cameroon
Atlas Copco Afrique Centrale SA
Douala
Canada
Atlas Copco Canada Inc.
Dorval
Chicago Pneumatic Tool Co. Canada Ltd.
Toronto
Chile
Atlas Copco Chilena S.A.C.
Santiago
Atlas Copco Customer Finance Chile Ltda
Santiago
China
Atlas Copco (China) Investment Co., Ltd.
Shanghai
Atlas Copco (China) Mining and  
Construction Equipment Trading Co., Ltd.
Nanjing
Atlas Copco (Nanjing) Construction and  
Mining Equipment Ltd.
Nanjing
Atlas Copco (Shanghai) Equipment  
Rental Co., Ltd.
Shanghai
Atlas Copco (Shanghai) Process  
Equipment Co., Ltd.
Shanghai
Atlas Copco (Shanghai) Trading Co., Ltd.
Shanghai
Atlas Copco (Shenyang) Construction  
and Mining Equipment Ltd.
Shenyang
Atlas Copco (Wuxi) Compressor Co., Ltd.
Wuxi
Atlas Copco (Wuxi) Exploration  
Equipment Ltd.
Wuxi
Atlas Copco (Zhangjiakou) Construction  
& Mining Equipment Ltd.
Zhangjiakou
Atlas Copco Industrial Technique  
(Qingdao) Tool Co., Ltd.
Qingdao
Bolaite (Shanghai) Compressor Co., Ltd.
Shanghai
Dynapac (China) Compaction & Paving  
Eq Co., Ltd.
Tianjin
Edmac (Shanghai) Trading Co., Ltd.
Shanghai
Edwards Technologies Trading  
(Shanghai) Co., Ltd.
Shanghai
Edwards Technologies Vacuum  
Engineering (Qingdao) Co., Ltd.
Qingdao
Edwards Technologies Vacuum  
Engineering (Shanghai) Co., Ltd.
Shanghai
Edwards Technologies Vacuum  
Engineering (Xian) Co., Ltd.
Xian
Guangzhou Linghein Compressor  
Co., Ltd
Guangzhou
Kunshan Q-Tech Air System  
Technologies Ltd.
Kunshan
Liuzhou Tech Machinery Co., Ltd.
Liuzhou
SCA Schucker Automation Equipment 
(Shanghai) Co., Ltd.
Shanghai
Shandong Rock Drilling Tools Co., Ltd. 
Yanggu
Shanghai Beacon Medaes Medical Gas  
Engineering Consulting Co., Ltd.
Shanghai
Shanghai Tooltec Industrial Tool Co., Ltd.
Shanghai
Wuxi Pneumatech Air/Gas Purity  
Equipment Co., Ltd.
Wuxi
Wuxi Shengda Air/Gas Punty  
Equipment Co., Ltd
Wuxi
Colombia
Atlas Copco Colombia Ltda
Bogotá
Croatia
Atlas Copco d.o.o.
Zagreb
The following table summarizes the Parent Company’s transactions with 
Group companies:
2014
2013
Revenues
 
 
Dividends
2 525 
10 227
Group contribution
4 188 
4 074
Interest income
298 
233
Expenses
 
 
Group contribution
–328 
–259
Interest expenses
–817 
–855
Receivables
2 669 
6 304
Liabilities
37 454 
40 454
Guarantees
9 576 
7 567

FINANCIAL STATEMENTS, PARENT COMPANY
120
Atlas Copco 2014
A22. Related parties, continued
Cyprus
Atlas Copco (Cyprus) Ltd.
Nicosia
Czech 
ALUP CZ spol. S.r.o
Breclav
Republic
Atlas Copco s.r.o.
Prague
Edwards s.r.o.
Lutin
Edwards Services s.r.o.
Lutin
Industrial Technique Service s.r.o.
Prague
Democratic 
Republic of 
the Congo
Atlas Copco DRC sprl
Lubumbashi
Denmark
Atlas Copco Kompressorteknik A/S
Copenhagen
Gazcon A/S
Lynge
Egypt
Atlas Copco Equipment Egypt S.A.E.
Cairo
Finland
Oy Atlas Copco Ab
Masaby
Oy Atlas Copco Kompressorit Ab
Vantaa 
Oy Atlas Copco Louhintatekniikka Ab
Vantaa 
Oy Atlas Copco Rotex Ab
Tammerfors
Oy Atlas Copco Tools Ab
Vantaa 
France
ABAC France S.A.S.
Valence
Atlas Copco Applications Industrielles S.A.S. Pontoise  
Atlas Copco Compresseurs S.A.S
Franconville
Atlas Copco Crépelle S.A.S.
Lille
Atlas Copco Forage et Construction S.A.S.
Pontoise  
Atlas Copco France Holding S.A.
Franconville
Compresseurs Mauguière S.A.S.
Sermamagny
Compresseurs Worthington Creyssensac 
S.A.S.
Meru
Edwards SAS
Gennevilliers
ETS Georges Renault S.A.S.
Nantes
Exlair S.A.S.
Chereng
Hibon International SA
Gennevilliers
Hibon SA
Gennevilliers
Seti-Tec S.A.S.
Lognes
Germany
ALUP Kompressoren GmbH
Köngen
Atlas Copco ACE GmbH
Essen
Atlas Copco Beteiligungs GmbH
Essen
Atlas Copco Construction Technique GmbH Wardenburg
Atlas Copco Deutschland GmbH
Essen
Atlas Copco Energas GmbH
Cologne
Atlas Copco Holding GmbH
Essen
Atlas Copco Kompressoren und  
Drucklufttechnik GmbH
Essen
Atlas Copco MCT GmbH
Essen
Atlas Copco Tools Central Europe GmbH
Essen
Construction Tools GmbH 
Essen
Desoutter GmbH
Maintal
Dynapac GmbH 
Wardenburg
Edwards GmbH
Kirchheim
Ekomak Kompressoren GmbH
Moers
Henrob GmbH
Herford
IRMER + ELZE Kompressoren GmbH
Bad Oyenhausen
Saltus Industrial Technique GmbH
Wuppertal 
SCA Schucker GmbH & Co KG
Bretten
SCA Schucker Verwaltungs-GmbH
Bretten
Synatec GmbH
Leinfelden- 
Echterdingen
Ghana
Atlas Copco Ghana Ltd.
Accra
Greece
Atlas Copco Hellas AE
Koropi 
Hong Kong
Atlas Copco China/Hong Kong Ltd.
Kowloon
CP China/Hong Kong Ltd.
Kowloon
Edwards Vacuum Hong Kong Ltd.
Hongkong
Hungary
Atlas Copco Kft.
Budapest
Industrial Technique Hungary Kft.
Budapest
India
Atlas Copco (India) Ltd.
Pune 
Edwards India Private Ltd.
Pune
Indonesia
PT Atlas Copco Indonesia
Jakarta
PT Atlas Copco Nusantara
Jakarta
Iraq
Atlas Copco Iraq LLC 
Erbil
Ireland
Aircosse Ltd.
Dublin
Atlas Copco (Ireland) Ltd.
Dublin
Edwards Vacuum Technology Ireland Ltd.
Dublin
Israel
Edwards Israel Vacuum Ltd.
Kiryat Gat
Italy
ABAC Aria Compressa S.p.A
Robassomero
Atlas Copco BLM S.r.l.
Milan
Atlas Copco Italia S.p.A.
Milan
Atlas Copco Stonetec S.r.L
Bagnolo Piemonte
Ceccato Aria Compressa S.p.A.
Vicenza
Edwards S.p.A.
Milan
MultiAir Italia S.r.l.
Cinisello Balsamo
Japan
Atlas Copco KK
Tokyo
Edwards Japan Ltd.
Chiba
Fuji Industrial Technique Co., Ltd.
Osaka
SCA Schucker Japan Co., Ltd.
Yokohama
Kazakhstan
Atlas Copco Central Asia LLP
Almaty
Kenya
Atlas Copco Eastern Africa Limited
Nairobi
Latvia
Atlas Copco Baltic SIA
Riga
Lebanon
Atlas Copco Levant S.A.L.
Beirut
Luxembourg Atlas Copco Finance S.á.r.l.
Luxembourg
Malaysia
Atlas Copco (Malaysia) Sdn. Bhd.
Shah Alam 
Edwards Technologies Malaysia Sdn. Bhd.
Kuala Lumpur
Mali
Atlas Copco Mali Sarl
Bamako
Mexico
Atlas Copco Mexicana S.A. de C.V.
Tlalnepantla
Atlas Copco Rental Mexico
Monterrey
Desarrollos Técnologicos ACMSA  
S.A. de C.V.
Tlalnepantla
SCA Schucker de Mexico S.A. de C.V.
Puebla
Mongolia
Atlas Copco Mongolia LLC
Ulaanbaatar
Morocco
Atlas Copco Maroc SA
Casablanca
Mozambique Atlas Copco Mozambique
Maputo
Namibia
Atlas Copco Namibia (Pty) Ltd.
Windhoek
Netherlands
ALUP Kompressoren B.V.
Nieuwegein
Atlas Copco Beheer B.V.
Zwijndrecht
Atlas Copco Internationaal B.V.
Zwijndrecht
Atlas Copco Nederland B.V.
Zwijndrecht
Cirmac International B.V.
Apeldoorn
Creemers Compressors B.V.
Eindhoven
Grass-Air Compressoren B.V.
Oss
New Zealand Atlas Copco (N.Z.) Ltd.
Lower Hutt
Exlair (NZ) Limited
Auckland
Nigeria
Atlas Copco Nigeria Ltd.
Lagos 
Norway
Atlas Copco Anlegg- og Gruveteknikk A/S
Langhus
Atlas Copco A/S
Langhus
Atlas Copco Kompressorteknikk A/S
Langhus
Atlas Copco Tools A/S
Langhus
Berema A/S
Langhus
Pakistan
Atlas Copco Pakistan (Pvt) Ltd.
Lahore
Panama
Atlas Copco Central América SA
Panama
Atlas Copco Panama SA
Panama
Peru
Atlas Copco Peruana SA
Lima
Philippines
Atlas Copco (Philippines) Inc.
Binan
Poland
ALUP Kompressoren Polska sp. z.o.o.
Warsaw
Atlas Copco Polska Sp. z o.o. 
Warsaw
Portugal
Sociedade Atlas Copco de Portugal Lda
Lisbon
Romania
Atlas Copco Romania S.R.L.
Bucharest
Country
Company
Location (City)
Country
Company
Location (City)

FINANCIAL STATEMENTS, PARENT COMPANY
Atlas Copco 2014
121
A22. Related parties, continued
Russia
CJSC Atlas Copco 
Moscow
Ekomak Industrial 
Moscow
Senegal
Atlas Copco Senegal SARL
Dakar
Serbia
Atlas Copco A.D.
Belgrade
Singapore
Atlas Copco (South East Asia) Pte. Ltd.
Singapore
Edwards Technologies Singapore Pte. Ltd.
Singapore
Slovakia
Atlas Copco s.r.o
Bratislava
Slovenia
Atlas Copco d.o.o.
Trzin
South Africa
Atlas Copco Holdings South Africa  
(Pty) Ltd.
Boksburg
Atlas Copco Investment Company  
(Pty) Ltd.
Johannesburg
Atlas Copco South Africa (Pty) Ltd.
Boksburg
South Korea
Atlas Copco Mfg. Korea Co., Ltd.
Seoul
CP Tools Korea Co., Ltd.
Seoul
Edwards Korea Ltd.
Seongnam
SCA Korea Co., Ltd.
Gyunggi-do
Spain
Aire Comprimido Industrial Iberia, S.L.
Madrid
Atlas Copco S.A.E.
Madrid
Gesan S.A. Group 
Zaragoza
Sweden
Atlas Copco CMT Sweden AB
Nacka
Atlas Copco Compressor AB
Nacka
Atlas Copco Craelius AB
Märsta
Atlas Copco Customer Finance AB
Nacka
Atlas Copco Dynapac AB
Nacka
Atlas Copco GIA AB
Grängesberg
Atlas Copco Industrial Technique AB
Nacka
Atlas Copco Järla Holding AB
Nacka
Atlas Copco Lugnet Treasury AB
Nacka
Atlas Copco Rock Drills AB
Örebro
Atlas Copco Secoroc AB
Fagersta
Atlas Copco Sickla Holding AB
Nacka
Atlas Copco Welltech AB
Jonsered
Chicago Pneumatic Construction  
Equipment AB
Nacka
Construction Tools PC AB 
Kalmar
Dynapac Compaction Equipment AB
Karlskrona
Dynapac International AB
Malmö
Industria Försäkringsaktiebolag
Nacka
Switzerland
Atlas Copco (Schweiz) AG
Studen
Atlas Copco Meyco AG
Zurich
Servatechnik AG
Oftringen
Taiwan
Atlas Copco Taiwan Ltd.
Taipei
Edwards Technologies Ltd.
Jhunan
Tanzania
Atlas Copco Tanzania Limited
Geita
Thailand
Atlas Copco (Thailand) Limited
Bangkok
Turkey
Atlas Copco Makinalari Imalat AS
Istanbul
Dost Kompresör End Mak Imal akım  
ve Tic A.S  ¸
Istanbul
Eko Teknik Endüstriyel
Istanbul
Ekomak Endüstriyel
Istanbul
Ekoser Endüstriyel
Istanbul
Scanrotor Otomotiv Ticaret A.S.
Istanbul
Ukraine
LLC Atlas Copco Ukraine
Kiev
United Arab 
Emirates
Atlas Copco Middle  
East FZE
Jebel Ali free zone, 
Dubai
Atlas Copco Services Middle East SPC
Abu Dhabi
United
Air Compressors and Tools Ltd.
Hemel Hempstead
Kingdom
Atlas Copco Ltd.
Hemel Hempstead
Atlas Copco (NI) Ltd.
Lisburn
Atlas Copco Rental UK - Oil & Gas
Dundes
Atlas Copco Tools Ltd.
Hemel Hempstead
Atlas Copco UK Holdings Ltd.
Hemel Hempstead
Edwards Chemical Management Europe Ltd. Crawley
Edwards High Vacuum International Ltd.
Crawley
Edwards US Holdco Ltd.
Crawley
Edwards Ltd.
Crawley
Henrob Direct Ltd.
Flintshire
Henrob Ltd.
Flintshire
Medaes Limited
Staveley
SCA Schucker UK Ltd.
Didcot
Tentec Ltd.
Birmingham
Uruguay
Econus S A
Montevideo
USA
Atlas Copco Assembly Systems LLC
Auburn Hills, MI
Atlas Copco Compressors LLC
Rock Hill, SC
Atlas Copco Comptec LLC
Voorheesville, NY
Atlas Copco Customer Finance USA LLC
Parsippany, NJ
Atlas Copco Drilling Solutions LLC
Garland, TX
Atlas Copco Hurricane LLC
Franklin, IN
Atlas Copco Mafi-Trench Company LLC
Santa Maria, CA
Atlas Copco North America LLC
Parsippany, NJ
Atlas Copco Rental LLC
Laporte, TX
Atlas Copco Secoroc LLC
Grand Prairie, TX 
Atlas Copco Specialty Rental LLC
Houston, TX
Atlas Copco Tools & Assembly Systems LLC Auburn Hills, MI
Atlas Copco USA Holdings Inc.
Parsippany, NJ
BeaconMedaes LLC
Rock Hill, SC
Chicago Pneumatic International Inc.
Rock Hill, SC
Chicago Pneumatic Tool Company LLC
Rock Hill, SC
Edwards Vacuum, Inc.
Delaware City, DE
Edwards Vacuum, US
Parsippany, NJ
Henrob Corporation
New Hudson, MI
Houston Service Industries, Inc
Houston, TX
Mining, Rock Excavation and  
Construction LLC 
Commerce City, CO
Quincy Compressor LLC
Bay Minette, AL
SCA Schucker LLC 
Novi, NJ
Uzbekistan
Atlas Copco Compressors and Mining  
Technique LLC
Tashkent
Venezuela
Atlas Copco Venezuela SA
Caracas
Vietnam
Atlas Copco Vietnam Company Ltd.
Ho Chi Minh City
Zambia
Atlas Copco (Zambia) Ltd.
Chingola
Zimbabwe
Atlas Copco Zimbabwe (Private) Ltd.
Harare
Country
Company
Location (City)
Country
Company
Location (City)

122
Atlas Copco 2014
The Parent Company financial statements have been prepared in accordance with generally accepted accounting principles in Sweden 
and the consolidated financial statements have been prepared in accordance with International 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 statements 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.
Our audit report was submitted on March 6, 2015
Deloitte AB 
Jan Berntsson
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 12, 2015.
Margareth Øvrum
Johan Forssell
Gunilla Nordström
Peter Wallenberg Jr
Board member
Board member
Board member
Board member
Bengt Lindgren
Mikael Bergstedt 
Union representative
Union representative
Ulla Litzén
Anders Ullberg
Staffan Bohman
Board member
Board member
Board member
Hans Stråberg
Ronnie Leten
Chair
President and CEO
SIGNATURES OF THE BOARD  
OF DIRECTORS
Nacka, March 6, 2015

Atlas Copco 2014
123
AUDIT REPORT
To the annual meeting of the shareholders of Atlas Copco AB
Corporate identity number 556014-2720
Report on the annual accounts and consolidated accounts 
We have audited the annual accounts and consolidated accounts of Atlas 
Copco AB for the financial year 2014, except for the corporate governance 
report on pages 56-65. The annual accounts and consolidated accounts of the 
company are included in the printed version of this document on pages 14–47 
and 56–122.
Responsibilities of the Board of Directors and the President for the annual 
accounts and consolidated accounts
The Board of Directors and the President are responsible for the preparation 
and fair presentation of these annual accounts in accordance with the Annual 
Accounts Act and of the consolidated accounts in accordance with Interna-
tional Financial Reporting Standards, as adopted by the EU, and the Annual 
Accounts Act, and for such internal control as the Board of Directors and the 
President 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.
Auditor’s responsibility
Our responsibility is to express an opinion on these annual accounts and con-
solidated accounts based on our audit. We conducted our audit in accordance 
with International Standards on Auditing and generally accepted auditing 
standards in Sweden. Those standards require that we comply with ethical 
requirements and plan and perform the audit to obtain reasonable assurance 
about whether the annual accounts and consolidated accounts are free from 
material misstatement.
An audit involves performing procedures to obtain audit evidence about 
the amounts and disclosures in the annual accounts and consolidated 
accounts. The procedures selected depend on the auditor’s judgement, includ-
ing the assessment of the risks of material misstatement of the annual 
accounts and consolidated accounts, whether due to fraud or error. In making 
those risk assessments, the auditor considers internal control relevant to the 
company’s preparation and fair presentation of the annual accounts and con-
solidated accounts in order to design audit procedures that are appropriate in 
the circumstances, but not for the purpose of expressing an opinion on the 
effectiveness of the company’s internal control. An audit also includes evaluat-
ing the appropriateness of accounting policies used and the reasonableness of 
accounting estimates made by the Board of Directors and the President, as 
well as evaluating the overall presentation of the annual accounts and consoli-
dated accounts.
We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the annual accounts have been prepared in accordance with 
the Annual Accounts Act and present fairly, in all material respects, the finan-
cial position of the parent company as of 31 December 2014 and of its finan-
cial performance and its cash flows 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 2014 and of its 
financial performance and cash flows for the year then ended in accordance 
with International Financial Reporting Standards, as adopted by the EU, and 
the Annual Accounts Act. Our opinions do not cover the corporate gover-
nance report on pages 56–65. The statutory administration report is consistent 
with the other parts of the annual accounts and consolidated accounts.
We therefore recommend that the annual meeting of shareholders adopt 
the income statement and balance sheet for the parent company and the group.
Report on other legal and regulatory requirements 
In addition to our audit of the annual accounts and consolidated accounts, we 
have also audited the proposed appropriations of the company’s profit or loss 
and the administration of the Board of Directors and the President of Atlas 
Copco AB for the financial year 2014. We have also conducted a statutory 
examination of the corporate governance report.
Responsibilities of the Board of Directors and the President
The Board of Directors is responsible for the proposal for appropriations of 
the company’s profit or loss, and the Board of Directors and the President are 
responsible for administration under the Companies Act and that the corpo-
rate governance report has been prepared in accordance with the Annual 
Accounts Act.
Auditor’s responsibility
Our responsibility is to express an opinion with reasonable assurance on the 
proposed appropriations of the company’s profit or loss and on the adminis-
tration based on our audit. We conducted the audit in accordance with gener-
ally accepted auditing standards in Sweden.
As a basis for our opinion on the Board of Directors’ proposed appropria-
tions of the company’s profit or loss, we examined the Board of Directors’ rea-
soned statement and a selection of supporting evidence in order to be able to 
assess whether the proposal is in accordance with the Companies Act.
As a basis for our opinion concerning discharge from liability, in addition 
to our audit of the annual accounts and consolidated accounts, we examined 
significant decisions, actions taken and circumstances of the company in order 
to determine whether any member of the Board of Directors or the President 
is liable to the company. We also examined whether any member of the Board 
of Directors or the President has, in any other way, acted in contravention of 
the Companies Act, the Annual Accounts Act or the Articles of Association. 
We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our opinions.
Furthermore, we have read the corporate governance report and based on 
that reading and our knowledge of the company and the group we believe that 
we have a sufficient basis for our opinions. This means that our statutory 
examination of the corporate governance report is different and substantially 
less in scope than an audit conducted in accordance with International Stan-
dards on Auditing and generally accepted auditing standards in Sweden. 
Opinions
We recommend to the annual meeting of shareholders that the profit be appro-
priated in accordance with the proposal in the statutory administration report 
and that the members of the Board of Directors and the President be dis-
charged from liability for the financial year.
A corporate governance report has been prepared, and its statutory con-
tent is consistent with the other parts of the annual accounts and consolidated 
accounts. 
Nacka, March 6, 2015
Deloitte AB
Jan Berntsson
Authorized Public Accountant

124
Atlas Copco 2014
FINANCIAL DEFINITIONS
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.
Earnings per share 
Profit for the period attributable to owners of 
the parent divided by the average number of 
shares outstanding.
EBITDA – Earnings Before Interest, Taxes, 
Depreciation and Amortization
Operating profit plus depreciation, impairment 
and amortization. 
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.
Interest coverage ratio 
Profit before tax plus interest paid and foreign 
exchange differences divided by interest paid 
and foreign exchange differences.
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.
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.
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.
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 2014
125
SUSTAINABILITY NOTES
ENVIRONMENTAL, SOCIAL AND 
GOVERNANCE (ESG) PERFORMANCE 1)
Economic value
Note
2010
2011
2012
2013
2014
Change, %
Direct economic value
Revenues 2)
70 490
82 274
91 417
84 803
94 614
11
Economic value distributed
 
Operating costs 3)
41 466
48 032
53 635
49 079
56 460
15
Employee wages and benefits, including other social costs
14 699
15 910
18 108
18 274
20 826
14
Costs for providers of capital 4)
4 489
5 913
7 182
7 853
7 919
1
Costs for direct taxes to governments
3 619
3 902
4 377
4 286
4 169
–3
Economic value retained
6 217
8 517
8 115
5 311
5 240
–1
– Redemption of shares
–
6 067
–
–
–
Environmental performance (production  
units and distribution centers) 
Note
2010 
2011
2012
2013
2014
Goal 5) 
Material* use in ’000 tonnes (iron and steel)
3
141
135
142
138
122
N/a
Packaging material ’000 tonnes
3
30
35
36
35
33
N/a
Direct energy use in GWh 6)
3
116
132
140
136
130
N/a
Indirect energy use in GWh 6)
3
287
305
301
304
347
N/a
Total energy use in GWh
3
403
437
441
440
477
N/a
Water consumption in ’000 m3
464
619
623
714
690
+/–0/COS 7) 
CO2 emissions ’000 tonnes (direct energy) – scope 1**
24
28
29
29
27
–20%/COS (2020) 7)
CO2 emissions ’000 tonnes (indirect energy) – scope 2**
88
98
76
80
97
–20%/COS (2020) 7)
CO2 emissions ’000 tonnes (total energy) – scope 1+2**
112
126
105
109
124
–20%/COS (2020) 7)
CO2 emissions ’000 tonnes (transports) – scope 3**
194
214
227
200
206
–20%/COS (2020) 7)
Waste in ’000 tonnes
3
34
34
39
41
48
N/a
Proportion of reused or recycled waste, %
3
88
95
92
93
93 Reuse or re­cycle all waste, 100
ISO 14001 certification, % of cost of sales 7)
97
95
94
97
96
100
ISO 14001 certification, % employees
88
91
96
100
Social performance, employees, health and safety 
Note
2010
2011
2012
2013
2014
Goal 5) 
White-collar employees, %
61
62
62
63
63
N/a
Blue-collar employees, %
39
38
38
37
37
N/a
Employee turnover white-collar employees, %
7.0
7.4
7.4
7.4
6.6
N/a
Employee turnover blue-collar employees, %
7.7
9.2
9.5
5.8
N/a
Internal mobility, %
9.3
8.2
7.7
7.2
Encourage
Work-related accidents, number
4
561
370
391
415
389
0
Work-related accidents, number per one million working hours
4
9.4
5.5
5.2
5.4
4.7
0
Lost days due to accidents, number per one million working hours
4
98
101
140
128
0
Work-related incidents, number per one million working hours
4
22.1
22.7
21.0
20.8
N/a
Fatalities
4
0
1
3
0
1
0
Sick leave due to diseases, %
2.1
1.9
2.1
2.0
1.9
<2.5
Sick leave due to diseases and accidents, %
2.0
2.1
2.1
2.0
<2.5
Training, average number of hours per employee
40
45
42
40
41
N/a
Training, average number of hours, white-collar employees
44
48
42
41
40
N/a
Training, average number of hours, blue-collar employees
34
41
42
39
42
N/a
Appraisal, %
74
84
83
82
82
100
Proportion of women employees, %
16.3
16.8
16.9
16.8
17.1
Increase
Proportion of women managers, %
13.5
14.6
15.1
16.2
16.6
Increase
Nationalities among senior managers, number
40
44
49
52
54
Increase
OHSAS 18001 certification, % of cost of sales 7)
61
67
72
89
91
100
OHSAS 18001 certification, % employees
69
85
89
100
Governance performance
Note
2010
2011
2012
2013
2014
Goal 5) 
Significant suppliers committed to the Business Code of Practice, %
5
N/a
N/a
72
82
100
ISO 9001 certification, % of cost of sales
88
93
95
100
Reports to hotline, number
6
20
25
39
47
47
Encourage
  Positive trend / goal achieved           
  Neutral trend           
  Negative trend / goal not achieved
See footnotes on next page
The environmental, social and governance information has been subject to external assurance in 2012, 2013 and 2014.  
This can to some extent influence comparisons between these years´ and previous years´ performance.

SUSTAINABILITY NOTES
126
Atlas Copco 2014
1) 	
Calculations according to GRI Guidelines, www.globalreporting.org. 
2) 	
Revenues include revenues, other operating income, financial income, profit from divested companies and share of profit in associated companies.
3) 	
Operating costs include cost of sales, marketing expenses, administration expenses, research and development expenses, other operating expenses,  
deducted for employee wages and benefits.
4) 	
Costs for providers of capital include financial costs and dividend, but exclude redemption of shares and repurchase of own shares. 
5) 	
Goal base year is 2010.
6) 	
Direct and indirect energy is reported in detail on the Atlas Copco website: www.atlascopco.com/us/sustainability .
7) 	
Cost of sales (COS) in relation to ISO includes production units, while COS in other cases includes the entire Group. COS when presented in  
relation to sustainability information refers to cost of sales at standard cost.
* 	
The finished products include parts or components which are not accounted for. 
** 	 Standardized conversion factors published by the Greenhouse Gas Protocol Initiative and International Energy Agency are used to calculate CO2 emissions, see www.
ghgprotocol.org and www.iea.org.  
A minor decrease in the CO2 emission from indirect energy was due partially to the update of the emission factors that are used for reporting.
NOTES TO THE ENVIRONMENTAL, SOCIAL  
AND GOVERNANCE (ESG) PERFORMANCE
Since 2001, the report has been prepared yearly in accordance with the Global 
Reporting Initiative (GRI) guidelines. Since 2006 the report has followed the 
GRI 3.0 version guidelines. The most recent sustainability report was pub-
lished in March 2014 as part of the annual report 2013. 
This report is also Atlas Copco’s Communication on Progress (COP),  
a report on performance in relation to the UN Global Compact’s ten  
principles. It can be found at www.atlascopco.com/ir and on UN Global  
Compact’s website at unglobalcompact.org/cop.
Atlas Copco adheres to the following internationally recognized  
voluntary standards and principles:
• 	 UN Global Compact. As a signatory to the UN Global Compact, a strate-
gic policy initiative for businesses that are committed to aligning their oper-
ations and strategies with ten universally accepted principles in the areas of 
human rights, labor, environment and anti-corruption.
• 	 Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines. 
The guidelines (G3) include an internationally recognized set of indicators 
for economic, environmental and social aspects of business performance 
that enables stakeholders to compare companies’ performance. Atlas  
Copco’s reporting according to the reporting principles and guidance, 
including required disclosures, can be found at www.atlascopco.com/ir.
Data collection and reporting
The sustainability report and the corporate governance report are integrated 
in the 2014 annual report. Sustainability information in the annual report is 
primarily presented on pages 10–13, 40–53 and 125–131, and in the GRI Com-
pliance Index. Reported facts and figures have been verified in accordance with 
Atlas Copco’s procedures for internal control. Data collection is integrated 
into the Group reporting consolidation systems and collected on a quarterly 
basis. Reported values are normally not corrected retroactively, but when a 
restatement of historically reported numbers is done this can be due to a 
change of calculation method or scope. Environmental data covers production 
units and distribution centers. Business partner data covers production units 
and employee data covers all operations. Responsibility for reporting rests 
with the General Manager of each company. Data is reported at local operat-
ing unit level, aggregated to division/business area and Group level. Data  
verification is performed at each level before submitting to external auditors 
for verification. 
The reporting of greenhouse gas emissions is done in accordance with  
the GHG Protocol (ghgprotocol.org) and the International Energy Agency 
(iea.org). The Group is a member of the Swedish Network for Transport and 
Environment (NTM) and closely follows its recommendations, which may 
impact the reporting guideline of CO2 emissions from transport. 
Scope
The Annual Report includes information regarding all three aspects of the 
Group’s strategy i.e. where Atlas Copco has a significant economic, environ-
mental and social impact. The report covers Atlas Copco’s operations for the 
fiscal year 2014, unless otherwise stated. Operations divested during the year 
are excluded; units that were acquired are included. This may at times cause 
major changes in reported performance. Limitations and reporting principles 
are explained in the relevant section of the report. For the reporting period of 
2014 all publicly disclosed sustainability information can be found in the pub-
lication Atlas Copco’s annual report 2014, except for the GRI Compliance 
Index, which is available on the Atlas Copco website, www.atlascopco.com/ir. 
Atlas Copco’s annual report 2014 includes a general overview of the 
Group’s environmental situation in accordance with the requirements of 
Swedish legislation regarding environmental information in the Board of 
Director’s Report. In addition, environmental and social information has  
been integrated into the annual report where appropriate in order to provide  
a more complete picture of the Group. In addition, Atlas Copco reports with 
reference to the content elements and guiding principles of the Inaugural  
Integrated Reporting Framework developed by the International Integrated 
Reporting Council. 
The reason for integrating the sustainability information in the annual 
report is to provide investors and stakeholders with a relatively complete and 
easily accessible overview of the Atlas Copco Group’s most important activi-
ties contributing to sustainable development and increasing shareholder value.
Materiality
The GRI core indicators reported and analyzed are those that are understood 
to be material to the Atlas Copco Group and its stakeholders, and which facili-
tate benchmarking with other companies in a broader sense. Key issues are 
identified through ongoing stakeholder engagement and are addressed by  
programs or action plans with clear measurable targets.
Stakeholder dialogue 
As a global Group, it’s vital for Atlas Copco to ensure accountability for its 
actual and potential impact on its stakeholders. In discussions with for exam-
ple NGO’s, GO’s and other influencers, it takes advice and/or learns from lis-
tening to their views. In 2014, one formal stakeholder dialogue was conducted 
with major shareholders, with the participation of members of Group man-
agement. The focus of the meeting was to review Atlas Copco’s sustainability 
performance and discuss its approach to business in complex markets. The 
presentation is available at www.atlascopco.com/us/sustainability. Other stake-
holder dialogues are conducted at different levels in the Group. Major issues 
are collected and form the basis for development of strategic responses to  
challenges. 
Review/audit
Atlas Copco has self-declared the report to be GRI B+ level compliant.  
The report covers all Profile Disclosures, all Disclosures on Management 
Approach and at least 20 Performance Indicators. The annual report has been 
reviewed and approved by Atlas Copco’s Group Management and the Atlas 
Copco Board. The sustainability information in the annual report 2014 has 
been subject to limited assurance by Deloitte.
Footnotes to page 125
1.
Reporting principles of the environmental, social and governance performance

Atlas Copco 2014
127
SUSTAINABILITY NOTES
The result from stakeholder dialogues is illustrated in the  
materiality matrix below and reflected in this report.
1.
Reporting principles of the environmental, social and 
governance performance, continued
Additional ESG Disclosure
In addition to producing an integrated report, Atlas Copco discloses its environ-
mental, social and governance performance to investors through questionnaires 
and interviews with analysts. This disclosure is in line with the contents pub-
lished in the annual report. Atlas Copco applies for inclusion in a select few,  
reputable and internationally established sustainability indices such as the  
FTSE4Good and the RobecoSAM Dow Jones Sustainability Index.
The CDP is an international non-profit organization that provides self-
reported climate change, water and forest risk data to investors representing 
USD 87 trillion in assets. In 2013, the CDP began its collaboration with the 
Dow Jones Sustainability Index to streamline the environmental disclosure 
component. The scoring is out of a maximum of 100 with ‘A’ being the highest 
grade for disclosure, the top scoring companies are included in the Carbon 
Disclosure Leadership Index (CDLI).
In addition to this, the CDP allows participating companies to request  
emissions data from select suppliers. In 2014, the CDP Supply Chain question-
naire was sent by the CDP on behalf of 64 companies. 
Index/Ranking/List
Atlas Copco Score
Remarks
CDP Investor
94 B
N/a
CDP Supply Chain
94
N/a
DJSI
score: 73 
percentile: 89
Included in DJSI  
sustainability yearbook 
Newsweek Green 
Rankings
Rank 7
Ranked in global top 10
Global 100
Rank 23
Leader in machinery sector
Atlas Copco has never paid for inclusion in rankings or lists, irrespective of the 
size of the fee requested, and has no ambition to change its position in the 
future. For this reason, Atlas Copco has not submitted an application for 
inclusion in the Ethisphere WME for 2014.
2.
Materiality
Atlas Copco takes inspiration from the GRI criteria for materiality to ensure 
that the annual report addresses all the sustainability issues that impact or are 
influenced by the Group’s operations. The materiality analysis identifies rele-
vant indicators that present significant risks or opportunities to the Group, 
and whether their impact can be reasonably estimated through reliable and 
sound investigative methods. Indicators, which do not qualify on all accounts, 
are regarded as immaterial and not reported. The remaining material indica-
tors are prioritized based on their relevance to internal and external stakehold-
ers. The issues that have the greatest relevance to both stakeholder groups and 
deemed business critical are included in the annual report. Other material 
issues with less priority are published on the Atlas Copco website,  
www.atlascopco.com/corporateresponsibility.
1
Supply chain management and responsible sourcing
2
Water risk management 
3 
Climate change impact
4 
Employer/employee relations
5 
Operating margin
6 
Energy and resource consumption/efficiency
7 
Product innovation
8 
Marketing of sustainable products and solutions
9
Hazardous substances in products and components
10
Emissions to air and water
11 
Corruption or bribery
12 
Safety and health
13 
Shared value/economic value added
14 
Operational excellence
15 
Transparent communication
16
Waste reuse and recovery
17
Sustainable construction
18
Public policy and lobbying
19
Corporate governance
20
Risk and crisis management
21
Human rights/diversity
22
Investments and acquisitions
23
Community engagement
24
Talent attraction, retention and development
Significance 
to external 
stakeholders
Very 
important
Very important
Important
Important
Significance to Atlas Copco
1
2
3
4
5
6
7
8
9
10
11 12 13 14
15 16
17 18
19 20 21
22 23 24

SUSTAINABILITY NOTES
128
Atlas Copco 2014
3.
Environmental impact 1) 
Performance towards goals
Overall, Atlas Copco is on track with its target to reduce CO2 from operations 
and transport by 20% by 2020 with respect to cost of goods sold. The aquisi-
tions contributed to an increase. Weather fluctuations, such as warmer winters 
which required less heating, and fluctuations in business partly resulted in 
decreased emissions. The goal to keep water consumption at 2010 levels with 
respect to cost of goods sold was also on track for 2014. A portion of the 
reduction is attributed to corrections in reporting, however the Group took 
efforts to proactively address leaks and implement water-efficiency measures 
which showed results in 2014.
A significant part of the Group’s environmental impact from operations 
comes from the materials and energy consumed as part of the production and 
the waste resulting from these operations.
The waste increased both in total volumes and in relation to cost of sales. 
This was largely influenced by a recent acquisition and of more metal scrap 
waste. A decline in the business also affected the cost of goods sold. All of the 
metal scrap is being recycled.
Material use
2014
Material use 2) in tonnes (iron and steel)
121 984
Aluminum
927
Rubber
491
Hydrocarbons
2 330
Volatile organic compounds
276
Gas
4 848
1) 	Production units and distribution centers.
2) 	The finished products include parts or components which are not accounted for. 
Energy consumption*, %
2014
Direct energy, renewable
0
Direct energy, non-renewable
27
Indirect energy, renewable
34
Indirect energy, non-renewable
39
*	 Direct energy is defined as purchased and consumed fuel for own production; this 
includes oil, coal, natural gas, gasoline and diesel. Indirect energy is defined as energy 
from external sources, for example energy required to produce and deliver purchased 
electricity and district heating. 
Waste disposal, tonnes and (%)*
2014
Energy recovery
9 189 (19)
Material reuse
1 887 (4)
Material recycling
34 045 (70)
Landfill
3 208 (7)
*	 Of which regulated or hazardous waste 4 710 tonnes.
Atlas Copco follows applicable environmental laws in all countries where the 
Group operates. Incidents or fines are reported for non-compliance with envi-
ronmental legislation, as well as incidents involving chemical, oil or fuel spill-
ages. In 2014, there were no major incidents reported concerning these aspects. 
Five Swedish companies require permits based on Swedish environmental 
regulations. These operations account for approximately 20% of the Group’s 
manufacturing and mostly involve machining and assembly of components. 
The permits relate to areas such as emissions to water and air, as well as noise 
pollution. The Group has been granted all permits needed to conduct its busi-
ness and none were under revision in 2014. There were 11 accidents resulting in 
adverse environmental effects and one case of injury/illness resulting from 
environmental accidents according to reporting. All accidents were addressed 
fully and comprehensively and clean-up costs amounted to KSEK 4 752. 
There were no cases of non-compliance and hence no fines were paid in 2014.
Environmental management systems
To help minimize the environmental impact and to secure that the precaution-
ary approach is applied, Atlas Copco has a target to implement environmental 
management systems (EMS) in all operations. All product companies should 
be certified according to ISO 14001 in order to manage and reduce their envi-
ronmental impact. Acquired product companies are normally certified within 
a two-year period. 
Product responsibility
As a minimum, all products comply with laws and regulations regarding their 
environmental impact and they are tested for safety prior to delivery. Further, 
all Atlas Copco products and services come with relevant product, service and 
safety information. The product and service information required by the 
Group’s procedures for product and service information and labeling covers 
aspects such as sourcing of components, content such as substances of con-
cern, safe use and disposal of the product. Customer training is included when 
relevant, to secure safe handling of the products.
In general, a limited proportion of Atlas Copco products fall under the 
EU Waste Electrical and Electronic Equipment (WEEE) Directive. For exam-
ple, handheld electric tools and monitoring control instruments qualify but 
not large mining and other capital equipment. Atlas Copco has a responsibil-
ity for the disposal of products that fall under the directive. Atlas Copco 
strives to follow laws and regulations regarding safety, health and environmen-
tal aspects, product information and labeling. No new cases have been filed in 
2014 for non-compliance with laws and regulations concerning the provision 
and use of products and services.
Sustainable construction
Atlas Copco has a goal to construct its buildings according to a sustainable 
building standard, such as LEED. This regards both new and reconstructed 
buildings over 2 000 m2. The expected results of the sustainable buildings are 
reduced environmental impact, reduced maintenance cost and improved  
working environment for the employees. 
Environmental data visualizations 
Atlas Copco annual report 2014 utilizes data visualization to facilitate the understanding  
of complex environmental data. Volumetric assumptions for CO2, from transport as 
illustrated on page 53, are based on the density of CO2 at standard pressure and 15°C: 
1.87 kg/m3. At this temperature and pressure, the gas would occupy a volume of 110.22 
million m3, which would fill a cube with a side length of 479.4 m. The relative heights of 
the Empire State building (443 m), Eiffel tower (324 m) and Statue of Liberty (93 m) are 
visualized for additional context. The image was designed using a visualization tool 
developed for Atlas Copco by Carbon Visuals.
 
The conversion of operational energy consumption to household equivalents as 
illustrated on page 52 is based on the average electricity consumption per electrified 
household in 2011 (source: Enerdata via World Energy Council).  Assumptions for  
product related visualization are explained in ESG note 10.

Atlas Copco 2014
129
SUSTAINABILITY NOTES
Uzbekistan, Zimbabwe. These countries are identified as having a heightened 
risk of human rights violations or corruption based on risk mapping provided 
by Amnesty International and Transparency International in 2011. The adap-
tation of the definition had resulted in a lower number of significant suppliers  
as from 2013 compared to previous years. In 2014, the number of significant 
suppliers increased, primarily due to acquisitions.
Supplier’s commitment
2014
Goal
Significant suppliers, number
4 915
N/a 
Safety, health and social (SHS) and  
environment evaluated suppliers 1), %
24
N/a
Approved suppliers (no need to follow up), %
89
N/a
Conditionally approved suppliers (monitored), %
10
N/a
Rejected suppliers (relationship ended) 2), %
1
N/a
Suppliers asked on commitment to the  
Business Code of Practice, number
4 466
N/a
Significant suppliers that have confirmed their 
commitment to the Code, %
82
100
1)	 Evaluations or audits are conducted by Atlas Copco teams directly at the suppliers’ sites. 
2)	 Reasons for rejection include for example safety in the workplace, personal protection for 
workers and no fulfillment of environmental laws. Suppliers are rejected if they  
do not meet Atlas Copco requirements and are not willing to improve. The Group  
does not keep any black lists of its business partners.
Prohibited or restricted substances 
Atlas Copco maintains lists of substances which are either prohibited or 
restricted due to their potential negative impact on health or the environment. 
Prohibited substances are not allowed in the Group’s products or processes. 
Restricted substances are not yet legally excluded for use but should be 
replaced according to a plan that takes into account technical and financial 
aspects. Suppliers’ use of such substances is regularly checked, and if prohib-
ited substances should be found, they must immediately be replaced with 
approved alternatives. The lists are continuously revised according to applica-
ble legislation, including REACH. The lists on prohibited and restricted sub-
stances are published on the Atlas Copco website.
6.
Governance
Atlas Copco’s hotline is the Group’s whistleblower function of the Business 
Code of Practice. The Group is positive to receiving reports through the  
hotline since it provides the possibility to act on potential misconduct to the 
Business Code of Practice. During the year the hotline has been promoted 
globally among employees and business partners. 
Reported potential violations, number
2014
Fraud
6
Labor relations
28
Corruption
8
Discrimination
4
Other (personal, organizational issues)
1
 Total
47
Six cases are still under investigation, of which three are related to fraud, one 
to corruption, and two to labor relations or other concerns. Cases of fraud  
and corruption were substantiated in five cases and led to disciplinary actions 
such as dismissal or changes in procedures to prevent future occurrences.  
The alleged cases of discrimination were not substantiated and closed after 
investigation. There have been no other instances of anti-competitive behavior 
brought to the attention of Group Management. No fines related to the hot-
line have been paid during the year.
4.
Safety and health
Safety is a priority area for Atlas Copco, and in 2014 the number of accidents 
decreased to 389 (415). The largest decrease was from the number of accidents 
reported from operations in Africa and the Middle East. Operations in North 
America also reported a small decrease. The majority of the accidents reported 
were in Europe, but the number did not change significantly from the previous 
year. An increase in the number of accidents, however, came from operations 
in Asia/Australia and South America. The relative number of accidents 
decreased to 4.7 (5.4) per one million working hours. 
The number of incidents increased to 1 713 (1 620). The relative number, 
however, remained stable at 20.8 (21.0) incidents per one million working 
hours. Operations in Europe and South America showed an increase in the 
number of incidents, while all other regions reported a slight decrease.
Geographical spread of incidents 
and accidents, %
Work-related 
incidents
Work-related 
accidents
North America
 
13
10
South America
 
5
11
Europe
 
72 
56
Africa/Middle East
 
2
5
Asia/Australia
 
8
18
Total
   
100
100
5.
Business partners
Business  
partner
Role in  
value chain
Primary responsible for  
risk management and 
compliance
Suppliers, 
subcontractors
Provide key parts as well as 
manufacturing services
Purchasing councils
Joint ventures
Partly owned companies that 
provide complementary 
products and services
Legal department  
and local managers
Agents, 
distributors
Sell and distribute products  
to customers on the Group’s 
behalf
Marketing councils
Supply chain management process: Suppliers are evaluated during and after 
selection by product companies, primarily by personnel in the purchasing 
function. Internal training on how to carry out supplier evaluations is  
published in the Group database The Way We Do Things. 
 
The supplier evaluation process examines:
•	 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: Managing waste, minimizing emissions,  
and reducing consumption of natural resources
•	 Human rights issues: Responsible sourcing and respect for  
human rights in operations
At times self-assessment checklists are sent to suppliers and on-site evaluations 
are conducted either at regular intervals or when deemed necessary. These 
result in a report with concrete suggestions in the form of an action plan or 
improvement to be followed up on at an agreed time. Atlas Copco can provide 
experience and know-how to suppliers who require support in order to comply 
with the minimum standards set forth in the 10-criteria checklist; however sup-
pliers who fail to meet red-flag criteria (such as zero-tolerance of corruption) 
or do not show a willingness to improve are rejected. Supplier evaluations 
regarding safety, health, social and environment aspects including objective 
factors such as quality and financial data are performed throughout the 
Group. 
Definition of significant supplier for reporting: All external suppliers of 
goods and services, direct and indirect, with a purchasing value above a set 
threshold, based on 12 month values from October prior year to September 
current year. For suppliers in high-risk countries listed below, suppliers  
are determined to be significant based on a significantly lower purchasing 
threshold (approximately 13% of set value) and are reported.
High-risk countries: Angola, Bolivia, China, Colombia, Democratic 
Republic of Congo, Indonesia, Iran, Nigeria, Russia, Saudi Arabia,

SUSTAINABILITY NOTES
130
Atlas Copco 2014
ISSUES
ACTIVITIES IN 2014
PLANNED FOR 2015
Potential human rights issues in the value 
chain for a dam construction project in 
Colombia
Customer sustainability tool used to assess risk and 
impact 
 
Action plan developed with local management to work 
with industry peers, and through bilateral engagements 
with governmental and non-governmental 
organizations
 
Results of investigations and action plan were 
presented at the annual stakeholder dialogue at Group 
Center in Stockholm.
Continue to monitor the situation and the progress  
of the local action plan
Continue roll-out for the business and human rights 
training in Latin America. The training has been 
translated to Spanish.
Use findings and learning points from the case to pilot 
the implementation of Atlas Copco’s approach in other 
complex markets
Potential distribution (indirect sales) of  
Atlas Copco products in conflict-affected 
regions: specifically Myanmar*
Dialogue was initiated by the EIRIS Conflict Risk 
Network regarding distribution of products in Myanmar, 
with the conclusion that Atlas Copco is classified with 
“Lower Intermediate Risk”
Enhanced human rights due-diligence for Myanmar has 
been planned for Q2 2015
*Status regarding Sudan remains unchanged from 2013
7.
Public policy
In 2014, Atlas Copco appointed a Vice President EU Governmental and  
Regulatory Affairs in order to directly engage with stakeholders on matters  
of public policy from the Group level. Atlas Copco belongs to trade organiza-
tions such as The Association of Swedish Engineering Industries, the Federa-
tion for the Technology Industry in Belgium, the Compressed Air and Gas 
Institute in the United States, the German Engineering Federation, and many 
others. Since 1959, Atlas Copco has been actively involved in Pneurop, the 
European committee of manufacturers of compressors, vacuum pumps,  
pneumatic tools and allied equipment. Pneurop acts on behalf of members in 
European and international forums regarding the harmonization of technical, 
normative and legislative development.
Atlas Copco is a member of the Committee for the European Construc-
tion Equipment Industry (CECE) which works, for example, in removing  
technical barriers and improving safety standards and environmental aspects 
of construction equipment. In addition, the company participates in ongoing 
development of international standards, including the ISO committee  
ISO/TC 118 and the CEN committee CEN 232. 
The Atlas Copco Group does not take political stands and does not use 
Group funds or assets to support political campaigns or candidates, or other-
wise provides services to political endeavors. Atlas Copco does not receive  
any significant assistance from governments.
8.
Human rights
Commitment to human rights
Atlas Copco’s central guiding policy is the Business Code of Practice which 
was updated in 2012 to support the United Nations International Bill of  
Human Rights. Atlas Copco is also a signatory of the UN Global Compact 
and is committed to working with the ten universally accepted principles  
in the areas of human rights, labor, environment and anti-corruption.  
The Atlas Copco Business Code of Practice also supports the International 
Labour Organization Declaration on Fundamental Principles and Rights at 
Work, as well as the OECD’s Guidelines for Multinational Enterprises. In 
2011, Atlas Copco took on the commitment to protect, respect and provide 
access to remedy with regards to human rights as proposed in the UN Guiding  
Principles on Business and Human Rights. In accordance with requirements 
of the framework, Atlas Copco has:
•	 Policy commitment: The Business Code of Practice is the central policy 
document, based on which Atlas Copco has a public human rights state-
ment. This can be found on the website.
•	 Human rights due diligence: An ongoing process to identify, prevent,  
mitigate and account for the human rights impacts related to Atlas Copco’s 
business or business relations.
•	 Access to remedy: The Atlas Copco hotline can be used to report perceived 
human rights violations and in cases where the stakeholder(s) or 
employee(s) are not satisfied with the solution provided by the ethical  
hotline, Atlas Copco will provide for mediation at the Stockholm  
Chamber of Commerce Arbitration Institute.
Integrating the rights of children, women and  
special vulnerable groups
Atlas Copco strives to be inclusive in its human rights work to ensure that  
the rights of vulnerable groups such as children or minorities are covered  
by policies and processes. The Group works to integrate this into the broader 
human rights approach, and assesses the direct and indirect impacts the  
business can have on relevant groups. 
Atlas Copco’s Human Rights approach
Working with human rights is a continuous process of learning, development 
and implementation. Atlas Copco strives to work with issues within its scope 
across the value chain. Atlas Copco does not view human rights as an isolated 
issue, but rather a cross-connected issue which can be impacted by working 
with corruption and environmental issues according to the Business Code of 
Practice. The Group strives to work with its commitment to the UN Guiding 
Principles across the value chain, covering procurement, human resources, 
sales, marketing and other business processes. Further details can be found in 
the Society, Business Partner and Employee sections of the report.
In the end of 2013, Atlas Copco set up an interdisciplinary Human Rights 
and Ethics Steering Committee which reports to the Compliance Board. The 
members of the committee also overlap partially with the Safety, Health, Envi-
ronment, and Quality Council. The Compliance Board contains two members 
of Group Management. The steering committee began work in 2014 to 
address issues such as training needs, impact assessment and the action points 
related to the implementation of the UN Guiding Principles.
Review of action points from previous year
In the previous annual report, Atlas Copco set forth several action points that 
were addressed throughout 2014. Group Management approved the guidelines 
focused on conflict-affected regions, and this was spread to the organization 
via the Group’s central information database, The Way We Do Things. The 
Group has taken measures to ensure that no future sales go to projects which 
may make it complicit in the violation of international law, with a special 
attention to occupied or non-self governing territories. 
Atlas Copco explored public-private partnerships on a local and Group 
level, in order to support the implementation of the UN Guiding Principles 
and to increase leverage to respect human rights. In 2014, Atlas Copco joined 
the Swedish Leadership for Sustainable Development, a business network run 
by the Swedish International Development Cooperation, to strengthen its 
approach on environment, human rights and anti-corruption. The Group also 
participated in cross-industry dialogues in order to share best practices and 
tools from the implementation process, as well as learning points from the roll 
out of the Group’s Business & Human Rights approach.
Atlas Copco continues to be in dialogue with the EIRIS Conflict Risk 
Network, with regards to indirect sales to Sudan and is classified as “Substan-
tial Action”. This means investors following the targeted Sudan legislative 
model do not need to take divestment measures. The Group will continue its 
humanitarian efforts is Sudan through Water for All projects.
Conflict minerals
Atlas Copco is a supplier to customers required to report on the Dodd Frank 
Act, section 1502 in the United States. In 2014, all business areas continued 
working with the standard template developed in joint collaboration by the 
Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustain-
ability Initiative (GeSI) to map the minerals and sourcing processes used by 
tier 1 suppliers. In order to safeguard the quality of the supplier engagement 
and the due diligence, Atlas Copco did not add additional supplier tiers into 
the scope of the investigation in 2014.
8.
Human rights, continued

Atlas Copco 2014
131
SUSTAINABILITY NOTES
9.
Taxes
Atlas Copco strives to be a good and reliable corporate citizen, observing  
the spirit as well as the letter of the laws of the countries in which the Group 
operates. The Group recognizes the key role that tax plays in the area of 
advancing economic development and also considers it vital to combat  
corruption and support environmentally sound business practices in order to 
create the most value for society. Atlas Copco acts in accordance with all  
applicable laws and are at all times guided by relevant international standards, 
chiefly the OECD and UN guidelines. Atlas Copco believes in good corporate 
practice in the area of tax management, balancing the interests of various 
stakeholders, including customers, investors and the governments and  
communities in the countries in which the Group operates. See note 9 of  
the consolidated financial statements for the details of taxes paid, reported 
according to the international financial reporting standards.
Opinion on disclosing tax by country
Atlas Copco has been in dialogue with investors, NGOs and peers regarding 
the disclosure of tax paid per country. At present there is no international 
standard for reporting taxes paid by country and therefore the resulting data  
is not comparable between different companies. Atlas Copco is not opposed  
to reporting tax paid by country if guidelines are broadened to apply to all 
companies in the industry so that the data is comparable and can be analyzed 
fairly.
Presence in countries classified as tax havens
Atlas Copco has companies in over 90 countries. Sometimes these companies 
are in countries that can be classified as tax havens, such as Panama. However, 
the reason for Atlas Copco’s presence in these markets is that the Group has 
customers with ongoing projects, such as expanding the Panama Canal.
10. Customer energy efficiency
Increasing sales by delivering energy efficient products
Atlas Copco has a Group goal to increase customer energy efficiency by 20% 
by 2020. Each division under each business area develops product lines to meet 
this ambition in order to increase sales while reducing the environmental 
impact.
Product line
Unit
2010
2014
Change, %
Surface drill rigs
g diesel/m3 
rock excavated
65.2
54.4
–17
Electrical nutrunners
kWh/year
309
296
–4
VSD-FF compressors 
MWh/year
77 
62 
–19 
XAHS186 portable 
compressors
barliter/ 
gram fuel
298
385
–29
Surface drill rigs, which consist of the total range of hydraulic surface drill 
rigs, showed an improvement of 17% in energy efficiency. Within this product 
line, which has been introduced by the Mining and Rock Excavation Tech-
nique business area, the top hammer surface drill rigs SmartROC T35 and 
SmartROC T40 showed an improvement of 48%. The surface drill rigs have 
been updated with Tier IV engines, which has improved the energy efficiency. 
The top hammer rigs has, additionally, been modified to direct energy to the 
pumps and motors only when these are being used. The energy efficiency cal-
culation is based on estimated typical energy consumption for each product 
included in the product line. The estimates are based on performed field test 
results. The energy efficiency figures are collected through a system, which col-
lects and transmits all data relevant to the equipment electronically for accu-
rate and reliable analysis. The energy efficiency improvement is the average 
energy efficiency value of the products sold during 2010 and 2014. 
The electrical nutrunners represent a significant part of the Industrial 
Technique business area portfolio. This product line includes electric tighten-
ing tools such as the EME 80-20J, which is used in the automotive manufactur-
ing process. During 2014, the business area developed software that will allow 
multiple battery tools to be connected to a single controller, which decreased 
energy consumption and purchasing cost. For the environment this means 
lower CO2 emissions and lower raw material use. For the energy efficiency cal-
culation a number of tools have been selected that represent the full range of 
torque tools. The energy consumption for each tool is based on a defined 
working scenario. The energy efficiency figure presented is the weighted aver-
age of the energy consumption and the amount of products sold during 2010 
and 2014.
Data for the product line variable speed drive (VSD) compressors was also 
collected directly from the equipment while in use. The evolution of the energy 
efficiency includes the GA 26 VSD FF and the GA 15 VSD+ compressor. 
The product line XAHS186 portable compressor provides significant 
energy savings and has lower emissions due to compliancy to Stage IIIB engine 
requirements. During the development phase, analyses of load cycle for typical 
applications allowed the Construction Technique business area to establish the 
best combination of design parameters, a new engine with catalyst and particle 
filter, and the efficiency of Atlas Copco’s compressor elements. Together, this 
reduces the fuel consumption of the compressor from 18.4 to 14.8 kg/hour at 
75% load, which is the normal load for the typical application.
Product energy efficiency visualizations 
The variable speed drive (VSD) case presented on pages 1, 4 and 42 are based on  
the total sales over the past 20 years for both VSD and VSD+ compressors, with an 
average size of 26 kW. The compressors were assumed to run for more than 3 000 
hours per year, and the energy savings are in relation to compressors without  
variable speed drive. The energy savings calculations was then visualized using the  
US Environmental Protection Agency’s Greenhouse Gas Equivalencies calculator  
(www.epa.gov/cleanenergy/energy-resources/calculator.html ). The EPA calulator’s  
comparisons to annual greenhouse gas emissions from cars and households were 
used to illustrate the case.

SUSTAINABILITY NOTES
132
Atlas Copco 2014
Introduction
We have been engaged by the Board of Directors and the President of  
Atlas Copco AB to undertake a limited assurance engagement of the Atlas 
Copco AB’s Sustainability Report for the year 2014. The Company has defined 
the scope of the Sustainability Report on page 126.
Responsibilities of the Board of Directors and the  
Executive Management for the Sustainability Report
The Board of Directors and the Executive Management are responsible for  
the preparation of the Sustainability Report in accordance with the applicable 
criteria, as explained on page 126 in the Sustainability Report, and are the 
parts of the Sustainability Reporting Guidelines (published by The Global 
Reporting Initiative (GRI)) which are applicable to the Sustainability Report, 
as well as the accounting and calculation principles that the Company has 
developed. This responsibility also includes the internal control relevant to  
the preparation of a Sustainability Report that is free from material misstate-
ments, whether due to fraud or error.  
Responsibilities of the auditor 
Our responsibility is to express a conclusion on the Sustainability Report 
based on the limited assurance procedures we have performed. 
We conducted our limited assurance engagement in accordance with 
AUDITOR’S LIMITED ASSURANCE 
REPORT ON ATLAS COPCO AB’S 
SUSTAINABILITY REPORT
Nacka, March 6, 2015
Deloitte AB
	
Jan Berntsson 	
Didrik Roos
	
Authorized Public Accountant	
                               Authorized Public Accountant
RevR 6 Assurance of Sustainability Reports issued by FAR. A limited assur-
ance engagement consists of making inquiries, primarily of persons responsi-
ble for the preparation of the Sustainability Report, and applying analytical 
and other limited assurance procedures. The procedures performed in a lim-
ited assurance engagement vary in nature from, and are less in extent than for, 
a reasonable assurance engagement conducted in accordance with IAASB’s 
Standards on Auditing and Quality Control and other generally accepted 
auditing standards in Sweden. The procedures performed consequently do  
not enable us to obtain assurance that we would become aware of all signifi-
cant matters that might be identified in a reasonable assurance engagement. 
Accordingly, we do not express a reasonable assurance conclusion.
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 conclusion 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. 
This is the translation of the auditor’s report in Swedish.
To Atlas Copco AB

Atlas Copco 2014
133
FIVE YEARS IN SUMMARY 
MSEK
2010
2011
2012
2013
2014
Average growth, 
five years
Orders, revenues and profit
Orders
75 178
86 955
90 570
81 290 
93 873
9.9% 
Revenues 
69 875
81 203
90 533 
83 888 
93 721
8.0%
   Change, organic from volume and price, %
12
22
9
–4 
–2
 
EBITDA
16 413
20 082
21 930
19 759 
20 724
12.4% 
   EBITDA margin, %
23.5
24.7
24.2
23.6 
22.1
 
Operating profit
13 915
17 560
19 266
17 056 
17 015
13.4% 
   Operating profit margin, %
19.9
21.6
21.3
 20.3
18.2
 
Net interest expense
–423
–506
–658
–730 
-699
 
Profit before tax
13 495
17 276
18 562
16 266 
16 091
14.2% 
   Profit margin, %
19.3
21.3
20.5
19.4 
17.2
 
Profit for the year
9 944
12 988
13 933
12 082 
12 175
14.2%
Employees
Average number of employees
31 214
35 131
39 113
40 159 
43 645
 
Revenues per employee, SEK thousands
2 239
2 311
2 315
2 089 
2 147
 
Cash flow
Operating cash surplus
16 673
19 906
21 583
19 205 
20 426
 
Cash flow before change in working capital 
12 555
14 536
15 819
13 426 
15 634
 
Change in working capital
–1 730
–6 115
–1 366
–538 
2 056
 
Cash flow from investing activities
–2 818
–4 335
–2 732
–4 472 
–10 565
 
Gross investments in other property, plant and equipment
–868
–1 728
–1 672
–1 255 
–1 548
 
Gross investments in rental equipment
–825
–1 332
–1 299
–1 456 
–1 719
 
Net investments in rental equipment
–345
–788
–749
–1 021 
–1 303
 
Cash flow from financing activities
–4 740
–12 735
–4 204
–2 535 
–14 358
 
   of which dividends paid 1) 
–3 650
–10 920
–6 070
–6 669 
–6 682
 
Operating cash flow
9 698
6 292
12 286
9 888 
13 869
 
Financial position and return
Total assets
71 622
75 109
80 794 
87 891 
105 281
 
   Capital turnover ratio
1.02
1.14
1.15
0.98 
0.98
 
Capital employed
50 006
49 086
54 354
62 683 
70 953
 
   Capital employed turnover ratio
1.40
1.65
1.67
1.34 
1.32
 
Return on capital employed, %
28.6
37.2
35.9
27.8 
24.3
 
Net indebtedness
5 510
14 194
9 262
 7 504
15 428
 
   Net debt/EBITDA
0.34
0.71
0.42
0.38   
0.74
 
Interest coverage ratio
18.1
18.9
20.3
14.9 
11.3
 
Equity
29 321
28 839
34 185
39 794 
50 753
 
   Debt/equity ratio, % 
18.8
49.2
27.1
18.9 
30.4
 
   Equity/assets ratio, % 
40.9
38.4
42.3
45.3 
48.2
 
Return on equity, %
37.6
47.6
45.5
33.6 
28.1
 
Key figures per share
Basic earnings / Diluted earnings, SEK
8.16 / 8.15
10.68 / 10.62
11.47 / 11.44
9.95 / 9.92 
10.01 / 9.99
14.3%
Dividend, SEK
4.00
5.00
5.50
5.50 
6.00 2)
14.9%
   Dividend as % of basic earnings
49.0%
46.8%
48.0%
55.3%
59.9%
 
   Dividend yield %
3.3%
3.4%
3.1%
3.1%
2.7%
 
Redemption of shares, SEK
5.00
– 
– 
–
6.00 2)
 
Operating cash flow, SEK
7.98
5.18
10.12
8.15
11.41
 
Equity, SEK
24
24
28
33
42
 
Share price, December 31, A share / B share, SEK
169.7 / 152.1
148.0 / 130.8
178.3 / 158.2
178.3 / 163.2
218.4 / 200.9
 15.7% / 16.5% 
Highest price quoted, A share / B share, SEK
174.0 / 156.2
178.5 / 161.2
180.9 / 160.3
194.1 / 176.4
222.6 / 204.3
 
Lowest price quoted, A share / B share, SEK
95.3 / 86.2
112.3 / 99.2
134.4 / 118.6
154.3 / 136.2
169.6 / 155.9
 
Average closing price, A share / B share, SEK
122.6 / 111.0
150.4 / 134.7
158.6 / 141.1
179.0 / 160.6
196.4 / 181.1
 
Average number of shares, millions
1 215.9
1 214.3
1 213.8
1 212.8
1 215.6
 
Diluted average number of shares, millions
1 217.3
1 217.3
1 215.6
1 214.4
1 216.6
 
Number of shareholders, December 31
69 275
71 379
69 272
72 738
70 914
 
Market capitalization, December 31, MSEK
201 797
175 271
211 397
213 348
261 719
 16.0% 
Average daily volume traded A and B shares, total
9 950 630 
11 005 232
9 486 974
8 544 643
8 599 058
 
For definitions, see page 124. Key financial data is published also on www.atlascopco.com/ir. 
1)  Includes share redemption in 2011. 
2)  Proposed by the Board of Directors.

9853 8303 01
COMMITTED TO SUSTAINABLE PRODUCTIVITY
We stand by our responsibilities towards our customers,  
towards the environment and the people around us.  
We make performance stand the test of time.  
This is what we call – Sustainable Productivity.
Atlas Copco AB (publ) 
SE-105 23 Stockholm, Sweden  Phone: +46 8 743 80 00  
Reg.no: 556014-2720  www.atlascopco.com