Transcript Atlas Copco Group

Atlas Copco Group
Q1 Results
April 26, 2007
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April 26, 2007, www.atlascopco.com
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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April 26, 2007, www.atlascopco.com
Q1 - Highlights
 Accelerated growth
– Organic order growth 24%
– Strong performance both in equipment and aftermarket
– 20th consecutive quarter of organic growth
 Strengthened market position
– Investments in market organization
– Investments in manufacturing capacity and efficiency
– Strategic acquisitions
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Q1 - Figures in summary
 Revenues up 12% to MSEK 13 390
– 17% organic growth
 Operating profit up 21% to MSEK 2 541
– Record operating margin of 19.0% (17.5)
 Profit before tax at MSEK 2 477 (2 032)
– Profit margin of 18.5% (17.0)
 Profit from continuing operations up 21% to MSEK 1 773
– Earnings per share continuing operations SEK 2.89
 Operating cash flow, continuing operations, MSEK 845 (711)
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Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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Orders received - Local currency
Group total +27% YTD
(Structural change +3% YTD)
39
21
+25
+18
18
10
7
+28
+57
+59
5
March 2007
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
+39
Q1 - The Americas
 Continued growth in North America
– Favorable investment activity in most
manufacturing and process industries
– Solid demand for mining and
construction equipment
21
+18
 Improved demand from all customer
segments in South America
– Strong sales increases, particularly in
Brazil and Chile
March 2007
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
7
+59
Q1 - Europe and Africa/Middle East
 Robust demand fuelled growth in Europe
– Continued strong demand from manufacturing and
process industries, except from the motor vehicle
industry
39
+25
– Very strong demand from the construction and
mining industries
– Strong growth, primarily in Eastern Europe, Great
Britain and the Nordic countries
 Very positive in Africa / Middle East region
– Sales of mining equipment to Southern Africa
increased significantly
March 2007
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
10
+57
Q1 - Asia and Australia
 Sustained growth in Asia
– Very good demand for industrial
equipment in all major markets
– Strong development for construction
and mining equipment
18
+28
 Strong demand from mining,
manufacturing and construction in
Australia
5
March 2007
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
+39
Volume Growth per Quarter
Atlas Copco Group, continuing operations
 Change in orders received in % vs. same Quarter previous year
25
20
15
10
5
0
-5
00 Q1
00 Q2
00 Q3
00 Q4
01 Q1
01 Q2
01 Q3
01 Q4
02 Q1
02 Q2
02 Q3
02 Q4
03 Q1
03 Q2
03 Q3
03 Q4
04 Q1
04 Q2
04 Q3
04 Q4
05 Q1
05 Q2
05 Q3
05 Q4
06 Q1
06 Q2
06 Q3
06 Q4
07 Q1
07 Q2
07 Q3
07 Q4
-10
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Atlas Copco Group – Sales Bridge
MSEK
2006
Structural change, %
Currency, %
Price, %
Volume, %
Total, %
2007
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January - March
Orders
Revenues
Received
13 699
11 948
+3
+3
-9
-8
+3
+2
+21
+15
+18
+12
16 120
13 390
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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Atlas Copco Group
Operating Profit and Return On Capital Employed (ROCE)
by Business Area
Revenues
MSEK
12 month values, period ending
Compressor Technique
Construction and Mining Technique
Industrial Technique
Eliminations/Common Group Functions
Atlas Copco Group
*including discontinued operations
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Mar. 2007
26 493
19 439
6 355
-333
51 954
Operating
profit
Mar. 2007
5 568
3 219
1 373
-512
9 648
Operating
margin
Mar. 2007
21.0%
16.6%
21.6%
ROCE
Mar. 2007
69%
37%
61%
18.6%
34%*
Compressor Technique
 Strong growth continued
– Increased market presence and penetration
support equipment and aftermarket growth
– Organic order growth 19%
– Strong in all regions
 Operating margin at 21.2%
 Strategic acquisitions
– Acquisition of Greenfield strengthens presence
in growing CNG segment
– ABAC acquisition finalized on April 2
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Compressor Technique
Revenue volume growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
25
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07 Q4
07 Q3
07 Q2
07 Q1
06 Q4
06 Q3
06 Q2
06 Q1
05 Q4
05 Q3
05 Q2
05 Q1
04 Q4
04 Q3
04 Q2
-10
04 Q1
-10
03 Q4
-5
03 Q3
-5
03 Q2
0
03 Q1
0
02 Q4
5
02 Q3
5
02 Q2
10
02 Q1
10
01 Q4
15
01 Q3
15
01 Q2
20
01 Q1
20
Quarterly operating margins include Prime Energy from Q1 2006.
15
25
Construction and Mining Technique
 Very strong demand from
mining, both for equipment
and aftermarket
 Organic order growth 33%
– 20th consecutive quarter
with volume growth
 Operating profit up 30%
– Record margin at 17.9%
 Acquisition of Dynapac
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Dynapac
Expanding presence in the road development market
 A leading supplier of compaction and paving equipment
– Sales in over 115 countries, 8 production facilities in 6 countries.
– 2 100 employees with expertise in R&D, production, marketing,
sales, services and customer finance
– Revenues approx. MEUR 505, operating margin 11.3% in 2006
– Founded in 1934, headquartered in Sweden
– Purchase price approximately MEUR 700
– Acquisition expected to close in Q2
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Construction and Mining Technique
Revenue volume growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
30
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07 Q4
07 Q3
07 Q2
07 Q1
06 Q4
06 Q3
06 Q2
06 Q1
05 Q4
05 Q3
05 Q2
05 Q1
-10
04 Q4
-10
04 Q3
-5
04 Q2
-5
04 Q1
0
03 Q4
0
03 Q3
5
03 Q2
5
03 Q1
10
02 Q4
10
02 Q3
15
02 Q2
15
02 Q1
20
01 Q4
20
01 Q3
25
01 Q2
25
01 Q1
18
30
Industrial Technique
 Resumed growth – 7% organic order growth
– Increased sales and marketing activities resulted in strong
growth within general industry
– Relatively weak demand from the motor vehicle industry in
North America and Western Europe
– Healthy growth for the vehicle service business
 All-time high operating profit and margin
 New techno center opened
 Strategic acquisition of Rodcraft
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Industrial Technique
Revenue volume growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
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07 Q4
07 Q3
07 Q2
07 Q1
06 Q4
06 Q3
06 Q2
06 Q1
-5
05 Q4
-5
05 Q3
0
05 Q2
0
05 Q1
5
04 Q4
5
04 Q3
10
04 Q2
10
04 Q1
15
03 Q4
15
03 Q3
20
03 Q2
20
03 Q1
20
25
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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Group Total
MSEK
Orders received
Revenues
Operating profit
- as a percentage of revenues
Profit before tax
- as a percentage of revenues
Profit from continuing operations
Profit from discontinued operations, net of tax
Profit for the period
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January - March
2007
2006
16 120
13 390
2 541
19.0
2 477
13 699
11 948
2 096
17.5
2 032
18.5
1 773
53
1 826
17.0
1 463
323
1 786
%
+18
+12
+21
+22
+21
Balance Sheet
MSEK
23
March 31, 2007
Intangible assets
Rental equipment
Other property, plant and equipment
Other fixed assets
Inventories
Receivables
Current financial assets
Cash and cash equivalents
Assets classified as held for sale
TOTAL ASSETS
4 722
2 010
4 000
3 554
9 783
13 523
944
16 139
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
Liabilities associated with assets
classified as held for sale
TOTAL EQUITY AND LIABILITIES
35 730
4 564
14 381
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9%
4%
7%
7%
18%
25%
2%
30%
54 675
54 675
Dec 31, 2006
4 299
1 979
3 777
3 161
8 487
12 401
1 016
20 135
8%
4%
7%
6%
15%
22%
2%
36%
3 562
1 991
3 571
1 698
7 913
12 178
577
3 858
21 937
57 285
6%
3%
6%
3%
14%
21%
1%
7%
38%
59%
16%
25%
27 355
10 149
13 392
48%
18%
23%
6 389
57 285
11%
55 255
65%
8%
26%
32 708
8 787
13 760
55 255
March 31, 2006
Cash Flow
Continuing operations
MSEK
January - March
2007
2006*
Operating cash surplus after tax
of which depreciation added back
Change in working capital
Cash flows from operating activities
Investments in tangible fixed assets
Sale of tangible fixed assets
Other investments, net
Cash flow from investments
Operating cash flow
Company acquisitions/ divestments
2 018
414
-506
1 512
-528
172
-311
-667
845
-219
*Restated, continuing operations
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April 26, 2007, www.atlascopco.com
1 916
389
-529
1 387
-498
145
-323
-676
711
-268
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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April 26, 2007, www.atlascopco.com
Near-term Outlook
The demand for Atlas Copco’s products and services, from most
customer segments such as mining, construction, and the
manufacturing and process industries, is expected to remain at the
current high level.
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Cautionary Statement
“Some statements herein are forward-looking and the actual
outcome could be materially different. In addition to the factors
explicitly commented upon, the actual outcome could be materially
effected by other factors like for example, the effect of economic
conditions, exchange-rate and interest-rate movements, political
risks, impact of competing products and their pricing, product
development, commercialization and technological difficulties,
supply disturbances, and major customer credit losses.”
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