The Construction and Mining Technique business area is cooperating with customers to develop autonomous drilling solutions, which will improve both productivity and safety in mines. Increased drilling speed is a key in creating customer value, but it can come from different kinds of innovations. New computerized drilling systems and service agreements that extend the product life were launched in the past year to improve efficiency.
Compressor Technique, our largest business area, is continuously working to reduce the life-cycle cost of its products. Innovations such as the Variable Speed Drive can help customers cut energy costs for compressed air by up to 35%. Last year, we performed a record number of AirScan™ audits, resulting in recommendations for how customers can optimize installations, reducing energy costs as well as their environmental impact. The gain to society is great – thousands of gigawatt hours have been saved thanks to such efficiency improvements.
Within the Industrial Technique business area, assembly systems are becoming ever more efficient, using advanced software control systems. Improved ergonomics provide higher productivity while minimizing risks to the health of the employees. Product developments include the recent launch of a range of lightweight screwdrivers which can be used in constrained areas, being as fast, powerful and accurate as other tools on the market which are twice the size.

With these new products and services, we want to set a standard of excellence for our customers. Atlas Copco should also set the standard when it comes to our own work with sustainability. The Group’s biggest impact on the environment may come from the use of our products, but there is much we can also do internally in contributing to a cleaner world.
Atlas Copco has targets in place, for instance, to annually reduce CO2 emissions and the use of raw materials and energy in the production process. Most of these indicators were positive last year, but there are challenges remaining, such as the use of packaging and water. These will be closely monitored for future improvements. One of the most important goals is that all business units shall have an environmental management system implemented. This number nearly doubled during 2008.
There were many other environmental achievements within the Group. Construction and Mining Technique’s breaker factory in Kalmar, Sweden, invested in new equipment which reduced the environmental impact from the plant by 90%. The winner of Atlas Copco’s Environmental Award for 2008 was the screw compressor team that launched a cast iron rotor which will reduce material used by 50%.

This last example brings us back to innovation, showing how clearly it will play a fundamental role both for our future growth prospects and for our ability to have a positive effect on the environment in which we live. Atlas Copco’s focus in these areas will be of great benefit for the customer, reducing costs and increasing productivity.
In 2008, we increased our spending on research and development by 14%, to more than BSEK 1.6. The current economic downturn may be the worst Atlas Copco has experienced in modern times, but holding back on technological development would be a cost cut we could not afford. What we have to do is find and develop new opportunities, through investing in new products, innovation and new markets.
Coming in as new CEO of this great company, it will be important to maintain our strong focus on design and development in order to create a sustainable environment and have a high speed of introduction of new products. This will enable us to have a constantly good offering for all our customers.

Thank you!
Ronnie Leten, President and CEO
Stockholm, Sweden, June 1, 2009