A

Atlas Copco!

The Atlas Copco name is made up of the Atlas - original name - and Copco, which is short form the French words Compagnie Pneumatique Commerciale.

C

Capital employed

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.

Carbon dioxide (CO2)

The most common greenhouse gas found in the atmosphere.

Corporate press release

A corporate press release is any news that falls within the publishing requirements of a company listed on the Stockholm Stock Exchange - i.e. news that is likely to materially influence the valuation of the company's listed securities.

Cost of Goods Sold (COGS)

All costs incurred to manufacture goods (and provide services) to be sold, including costs for material, salaries, and depreciation of equipment, but excluding costs for marketing, administration and product development.

D

Debt/equity ratio

Net indebtedness in relation to equity, including minority interest.

Dividend yield

Dividend divided by the average share price quoted.

E

Earnings before depreciation and amortization (EBITDA)

Operating profit plus depreciation, impairment and amortization

Earnings per share

Profit for the period, attributable to equity holders of the parent divided by the average number of shares outstanding.

EBITDA margin

Earnings before depreciation, impairment and amortization as a percentage of revenues.

Environmental Management Systems (EMS)

The part of the overall management system that includes organizational structure, planning activities, responsibilities, practices, procedures, processes, and resources for developing, implementing, achieving, reviewing, and maintaining the environmental policy.  An EMS involves a systematic and documented approach to environmental management.

Equity per share

Equity including minority interest divided by the number of shares.

Equity/assets ratio

Equity including minority interest, as a percentage of total assets.

F

Fossil fuels

Fuels originating from organisms of an earlier geological age, including coal, oil, natural gas and peat.

I

Interest coverage ratio

Profit before tax plus interest paid and foreign exchange differences divided by interest paid and foreign exchange differences.

ISO 14001

An international standard, developed by the International Organization for Standardization (ISO), for setting up and certifying environmental management systems.

L

Life Cycle Assessment (LCA)

A method for assessing the total environmental impact of a product or service "from cradle to grave", including all phases of production, use, and final disposal.

M

Megawatt hour (MWh)

A measure of electrical energy equal to the power provided by one megawatt in one hour. Mega is the metric prefix for one million. In the report, gigawatt hour (GWh) is also used as a measurement unit. Giga is the prefix for one billion.

N

Net Cash Flow

Change in cash and cash equivalents excluding currency exchange rate effects.

Net indebtedness

Interest-bearing liabilities/provisions less cash and cash equivalents and current financial assets.

Net interest expense

Interest expense less interest income.

O

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 financial items and taxes.

Operating profit margin

Operating profit as a percentage of revenues.

P

Price/earnings

The average share price quoted divided by earnings per share.

Price/sales

The average share price quoted divided by revenues per share.

Profit margin

Profit before tax as a percentage of revenues.

R

Return on capital employed (ROCE)

Profit before tax plus interest paid and foreign exchange differences (for business areas: operating profit) as a percentage of average capital employed.

Return on equity

Profit for the period, attributable to equity holders of the parent as a percentage of average equity, excluding minority interest.

Return on operating capital

Operating profit excluding goodwill amortization as a percentage of average capital employed, excluding goodwill.

S

Sick-leave

Absence from work due to the employee's own illness, and does not include absence due to child care or care of relatives and next-of-kin. The sick-leave indicator used in the Atlas Copco Group is measured as number of sick-leave days in relation to total number of working days.

Stakeholder

An individual or group who can affect or is affected by the activities of an organization.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Improving quality of life for everyone, now and for generations to come. Sustainability has three dimensions: economic, environmental, and social sustainability.

Sustainability

Atlas Copco defines the long term sustainability of its business in three dimensions: The consolidation of its Economic performance of adding financial value, its Environmental performance in terms of product and process initiatives to safeguarde the environment, and its Social performance in terms of the social value it adds to its employees and to society. The Group publishes an Annual Sustainability Report with details of these parameters, as part of its Annual Report.

V

Valued added

A measure of the company's productive contribution, that is, the valued added through processing and other activities. Calculated by deducting costs for the purchase of raw materials, wholly and semi-finished goods and services from revenues.

W

Weighted average cost of capital (WACC)

interest-bearing liabilities x i      +     market capitalization x r
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interest bearing liabilities          +      market capitalization

i: The Swedish risk-free interest rate (10-year government bonds) plus 0.5 percentage points to compensate for the premium Atlas Copco pays on borrowings compared to that of the Swedish state.
r: The Swedish risk-free interest rate, plus a risk premium (5.0 %)

Work-related accident

Includes illness or injury resulting in loss of consciousness, restriction of work or motion, or transfer to another job, and requiring medical treatment beyond first aid. This does not include accidents occurring when travelling to or from work.