Atlas Copco: Atlas Copco : 20250320 Annual report 2024, incl. sustainability report and corporate governance report (Copy of the official ESEF-format) (20250320 annual report 2024 incl sustainability report and corporate governance report copy of the official ESEF format)

Introduction This is Atlas Copco Group The year in review Governance Financials 1 Summary of 2024 2 A decentralized group with four business areas 3 President and CEO 5 This is Atlas Copco Group 6 Our targets 8 This is how we do business 12 The year in review 20 Business area: Compressor Technique 23 Business area: Vacuum Technique 26 Business area: Industrial Technique 29 Business area: Power Technique 32 Sustainability report: General information 44 Environmental information 54 EU Taxonomy regulation disclosures 60 Social information 71 Governance information 75 GRI content index Auditor's limited assurance report on 81 Atlas Copco AB's sustainability report 82 Risks, risk management and opportunities 88 The Atlas Copco AB share 90 Corporate governance 94 Board of Directors 96 Group Management 98 Internal control over reporting 100 Financial statements (Atlas Copco Group) 105 Notes (Atlas Copco Group) 146 Financial statements (Parent) 148 Notes (Parent) Other information 159 Signatures of the Board of Directors 160 Auditor's report 164 Financial definitions 165 Four years in summary 166 Contact information In Atlas Copco Group, we enable our customers to grow and drive society forward. We develop technology that transforms the future, and our innovative products, solutions and services are a key part of most industries. Electronics, medical research, renewable energy, food production, and infrastructure are just a few examples. This annual report reflects the Group's mission of creating sustainable, profitable growth. It integrates financial, sustainability, and governance information to describe Atlas Copco Group in a comprehensive and cohesive manner. Statutory sustainability report and external review Atlas Copco Group reports on its sustainability work for 2024 in accor­dance with GRI Standards, which together with the EU Taxonomy regula­tion disclosures, on pages 54-59, constitutes the Group's statutory sus­tainability report. Ernst & Young have expressed their opinion that a stat­utory sustainability report has been prepared according to the Swedish Annual Accounts Act, and they have performed a limited review of the sustainability report according to GRI, see page 81. More information can be found at: www.atlascopcogroup.com . sidiaries are often referred to as Atlas Copco Group, the Group or the company. Any mentioning of the Board of Directors or the Board refers to the Board of Directors of Atlas Copco AB. In the Group, there are many strong brands driving the success of our business. When describing the Group, and not specific brands or entities, we refer to Atlas Copco Group. Forward-looking statements Notice The amounts in the report are presented in MSEK unless otherwise indicated and numbers in parentheses represent comparative figures for the preceding year. The figures presented in this report refer to continuing operations unless otherwise stated. Atlas Copco AB is a public company. Atlas Copco AB and its sub­ Some statements in this report are forward­looking, and the actual out­comes could be materially different. In addition to the factors explicitly discussed, others 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 and geopoli­tical developments, the impact and pricing of competing products, product development, commercialization and technological difficulties, supply­chain interruptions, and major customer credit losses. The annual report for the Group and the parent company can be found on pages 5-80, 82-87 and 90-159, excluding the quarterly data on page 117. The corporate governance report examined by the auditors can be found on pages 90-99. Sustainability information that has been reviewed by the auditors can be found on pages 5­11, 32-53, and 60-80. This information, together with the EU Taxonomy disclosures on pages 54-59, constitutes the Group's statutory sustainability report. SUMMARY OF 2024 • Summary of 2024 A decentralized group with four business areas President and CEO Atlas Copco Group 2024 Solid orders, record revenues, and stable profitability Revenues: MSEK 176 771 +2% Operating margin: 21.6% (21.5) Return on capital employed: 28% (30) Operating cash flow: MSEK 30 981 (23 192) Key financial data Basic earnings per share, SEK Diluted earnings per share, SEK Profit before tax - in % of revenues Profit for the year Orders received Revenues EBITDA - in % of revenues EBITA ¹ - in % of revenues Operating profit - in % of revenues Adjusted operating profit - in % of revenues MSEK ¹ Operating profit excluding amortization of intangibles related to acquisitions. ² Adjusted for share split. Orders received, revenues and operating margin Operating cash flow and return on capital employed Dividend/earnings per share, average ³ including discontinued operations MSEK % 200 000 40 MSEK % 35 000 50 % 60 35 2022 2020 2021 2022 2023 Orders received, MSEK Revenues, MSEK Operating margin, % 2024 2020 2021 2023 Operating cash flow, MSEK 2024 Re O tu p r e n ra o t n in c g ap ca it s a h l e fl m ow plo a y n e d d r , e % turn on capital employed 2023 är operating cash flow: 23192 Return on cap empl. är 30% Dividend policy history -2003 30-40% of earnings 2003-2011 40-50% of earnings 2011- about 50% of earnings % ³ Dividend for the fiscal year 2024 is based on the proposal from the Board of Directors. 35 28 A DECENTRALIZED GROUP WITH FOUR BUSINESS AREAS Summary of 2024 • A decentralized group with four business areas President and CEO A decentralized group with four business areas Atlas Copco Group enables technology that transforms the future. We innovate to develop products, services, and solutions that are key to our customers' success. Our four business areas offer com-pressed air and gas solutions, vacuum solutions, energy solutions, dewatering and industrial pumps, industrial power tools, and assembly and machine vision solutions. In 2024, the Group had revenues of BSEK 177, and about 55 000 employees at year end. Revenues by region, Group Orders received by customer category, Group Share of revenues, Group Equipment, 63% Compressor Technique Page 20 Orders received: MSEK 79 976 Revenues: MSEK 78 259 Operating margin: 25.2% The Compressor Technique business area provides compressed air and gas solutions such as industrial compressors, gas and process compres­sors and expanders, air and gas treatment equipment, air management systems, and service through a global network. Revenues by region Orders received by customer category Share of revenues Equipment, 57% Vacuum Technique Page 23 Orders received: MSEK 36 629 Revenues: MSEK 40 441 Operating margin: 21.1% The Vacuum Technique business area provides vacuum products, exhaust management systems, valves and related products, and service through a global network. Revenues by region Orders received by customer category Share of revenues Equipment, 74% Industrial Technique Page 26 Orders received: MSEK 27 656 Revenues: MSEK 29 522 Operating margin: 20.5% The Industrial Technique business area provides industrial power tools, assembly and machine vision solutions, quality assurance products, and service through a global network. Revenues by region Orders received by customer category Share of revenues Equipment, 73% Power Technique Page 29 Orders received: MSEK 27 866 Revenues: MSEK 29 622 Operating margin: 18.5% The Power Technique business area provides portable air and power, industrial and portable flow solutions through products such as mobile compressors, generators, energy storage systems, dewatering and industrial pumps, along with a number of complementary products. It also offers specialty rental and provides service through a global network. Revenues by region Orders received by customer category Share of revenues Equipment, 56% Summary of 2024 • President and CEO Technology leadership and innovation We can look back on a year where our ability to adapt quickly to new business conditions, our focus on maintaining stability, and our drive to fostering innovation led to solid orders, record revenues, and stable profitability. Our approach to building trust and creating long-term relationships with stakeholders enables the development of transformative technologies and our success over time. What is technology leadership? Atlas Copco Group is known for developing innovative products and solutions, and we like to say that we make things that make society function smoothly. But true innovation is not just based on technical expertise and looking ahead. You must also be open minded and ready to connect with your stakeholders on a deeper level to capture challenges and needs that are less obvious. This kind of relationship can only be built on trust and long­term commitment, and on a genuine inter­est in mutual growth. Then, and only then, the opportunities to develop technologies that truly hold the power of transforming the future arise. This level of innovation also requires a rare combination of long­term stability and constant change. Atlas Copco Group is set up to harvest more than 150 years of collected knowledge and to quickly adapt to new business conditions. Our profitable service business and asset­light operations, as well as the speed that comes from a highly decentralized organization, allow us to capture opportuni­ties at an early stage. This helps us remain successful over time and enables us to continuously invest in innovation that drives technology forward. Having a global and diversified business brings a lot of advan­tages. Our global presence and broad application knowledge make us robust and able to tackle segmental downturns. We nurture close partnerships and our service solutions, which in 2024 repre­sented 37% of revenues, provide unique insights that can be lever­aged to create new innovations and new value for our customers, society, and ourselves. When needed, we acqu