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Interesting lunch presentation with Atlas Copco

By May 25, 2022Client news, News

On May 24, Nordic Equities organized a company presentation together with Atlas Copco. IR manager Sofia Seiplax represented the company and offered a rich presentation. We got to listen to the company’s business model, quarterly reporting, tailwinds and headwinds as well as the way forward to secure Atlas Copco’s future.

Atlas Copco is today a global player with customers in more than 180 countries and revenues of SEK 111 billion. Their organization is decentralized where freedom under responsibility prevails. This means a large follow-up of balance sheets (+500 globally), but the arrangement has proven to be successful as the divisions are the closest to the end customer and understand them best. The decision-making process thus becomes more efficient both in terms of small and large decisions such as acquisitions. In other words, it is up to the divisions to map and evaluate potential acquisitions that can offer financial added value.

During the first quarter, order intake came in better than expected and all segments and regions performed well with double-digit growth. For the company, it was also a sign of strength that Asia now accounts for 40% of the total order intake, where they see great growth potential going forward. They follow the political developments in China closely and evaluate the situation continuously. So far, it has been successful to have a presence in the country and as long as it does not change, the goal is to continue to gain market share there.

Revenue landed at SEK 30 billion, which Atlas Copco was satisfied with given the world situation and the continuing prevailing component shortage. At present, they buy some components in the spot market and they see more air transport than normal; costs that they have chosen to take to meet customer demand. They try to increase prices towards the customer to the greatest extent to compensate for costs, but meet some resistance as the price increases this time do not come with a product improvement.

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