Transcript Atlas Copco Group

Atlas Copco Group
Q1 Results
April 28, 2010
April 28, 2010 www.atlascopco.com
Contents
 Q1 business highlights
 Market development
 Business areas
 Financials
 Outlook
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April 28, 2010 www.atlascopco.com
Q1 - highlights
 Strong recovery in order intake
– Significant growth in most emerging markets and in mining
– Record order level in Asia and South America
– Positive development in North America and still weak in Europe
 Sales of aftermarket products and services increased
 Operating profit margin at 17.2%
– Cost and efficiency measures, price and a favorable sales mix gave
support
 Strong operating cash flow
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April 28, 2010 www.atlascopco.com
Q1 - figures in summary
 22% organic order growth
 Revenues of MSEK 15 301; 3% organic decline
 Operating profit at MSEK 2 627 (2 172)
– Operating margin of 17.2% (14.5 adjusted for restructuring)
– Restructuring cost of MSEK 230 in 2009
 Profit before tax at MSEK 2 497 (1 794)
 Basic earnings per share SEK 1.52 (1.13)
 Operating cash flow MSEK 2 223 (2 851)
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Contents
 Q1 business highlights
 Market development
 Business areas
 Financials
 Outlook
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April 28, 2010 www.atlascopco.com
Orders received - local currency
Group total +28%
Effect of cancellations +5%, structural change +1%
35
16
+7
21
+47
12
10
+37
+16
+60
6
March 2010
A
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B
A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
+76
Q1 - the Americas
 Positive development in North America
– Strong demand for mining equipment
– Sales of industrial and construction
equipment and aftermarket improved
16
+47
 Continued growth in South America
– Good demand for all types of equipment
– Order intake at record level
10
March 2010
A
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B
A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
+60
Q1 - Europe and Africa/Middle East
 Still weak demand in Europe
– Southern Europe remained weak, while some
positive development was noted in Germany and
in the Nordic countries
35
+7
– Solid aftermarket
 Some growth in Africa / Middle East
– Increased order intake of mining and industrial
equipment
March 2010
A
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B
A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
12
+16
Q1 - Asia and Australia
 Record order intake in Asia
– Growth in India, China and many other
markets for most types of equipment.
– Negative development in Japan and South
Korea.
21
+37
 Strong mining demand in Australia
– Sales of construction equipment improved
6
March 2010
A
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April 28, 2010 www.atlascopco.com
B
A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
+76
Organic* growth per quarter
Atlas Copco Group, continuing operations
 Change in orders received in % vs. same quarter previous year
*Volume and price
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Atlas Copco Group – sales bridge
MSEK
April 28, 2010 www.atlascopco.com
March
Orders
Received
Revenues
2009
Cancellations, %
Structural change, %
Currency, %
14 331
+5 *
+1
-8
16 577
1
-6
Price, %
Volume, %
Total, %
2010
+1
+21
+20
17 267
+1
-4
-8
15 301
*Cancellatio ns in Q12009
11
January
Contents
 Q1 business highlights
 Market development
 Business areas
 Financials
 Outlook
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April 28, 2010 www.atlascopco.com
Atlas Copco Group
Revenues, operating profit and return on capital employed (ROCE)
by business area
Revenues
MSEK
12 month values, period ending
13
Operating
Operating
ROCE
profit
margin
March 2010 March 2010 March 2010 March 2010
Compressor Technique
31 823
5 945
18.7%
Construction and Mining Technique
25 326
3 562
14.1%
Industrial Technique
Eliminations/Common Group Functions
Atlas Copco Group
5 392
-55
62 486
420
-382
9 545
7.8%
49%
18%
16%
15.3%
19%
April 28, 2010 www.atlascopco.com
Compressor Technique
 Improved demand
– 10% organic order growth vs. Q1 2009
– Growth drivers were emerging markets and
North America
– Improved demand for portable compressors
from low levels
 Increased aftermarket business
 Operating margin at 20.6%
– Positively affected by cost and efficiency
measures, sales mix and price.
 Acquisition of Quincy Compressor finalized
– Except the Chinese operations, where
approvals are expected in the second quarter
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February
2, 2010,
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April 28, 2010
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Compressor Technique
*Volume and price
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Construction and Mining Technique
 38% organic order growth vs. Q1 2009
– Strong demand from mining industry
– Sales to construction customers improved from low levels with notable
improvement in emerging markets and in road construction equipment
– Growth in service, spare parts and consumables
 Operating margin at 15.4%
– Affected positively by revenue mix, price, and improved utilization in
manufacturing, but negatively by currencies.
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Construction and Mining Technique
*Volume and price
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Industrial Technique
 27% organic order growth vs. Q1 2009
– Record order intake in Asia.
– Sales in North America increased
significantly, but from low levels.
– Aftermarket developed positively.
 Operating profit margin at 16.4%
– Lower costs thanks to restructuring measures
and improved prices supported the margin.
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Industrial Technique
*Volume and price
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Contents
 Q1 business highlights
 Market development
 Business areas
 Financials
 Outlook
20
April 28, 2010 www.atlascopco.com
Group total
MSEK
21
January - March
2010
2009
%
Orders received
Revenues
17 267
15 301
14 331
16 577
+20
-8
Operating profit
2 627
2 171
+21
- as a percentage of revenues
Profit before tax
- as a percentage of revenues
17.2
2 497
16.3
13.1
1 794
10.8
+39
Profit for the period
Basic earnings per share, SEK
Return on capital employed, %
1 855
1.53
19
1 378
1.13
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+35
Profit bridge
January – March, 2010 vs 2009
MSEK
Atlas Copco Group
22
Q1 2010
Organic Grow th
Price/Volum e
Currency
One-tim e item s
Acq./Div.
Q1 2009
Revenues
15 301
-416
-990
130
16 577
EBIT
2 627
286
-75
244
2 172
%
17.2%
-
-
-
13.1%
April 28, 2010 www.atlascopco.com
Profit bridge – by business area
January – March, 2010 vs 2009
MSEK
Compressor Technique
Q1 2010
Organic Grow th
Price/Volum e
Currency
One-tim e item s
Acq./Div.
Q1 2009
Revenues
7 659
-191
-620
110
8 360
EBIT
1 577
148
-90
135
1 384
%
20.6%
-
-
-
16.6%
6 233
-358
-245
20
6 816
960
127
-95
60
868
15.4%
-
-
-
12.7%
1 483
130
-130
243
137
-20
49
77
16.4%
105%
-
-
5.2%
Construction & Mining Technique
Revenues
EBIT
%
Industrial Technique
Revenues
EBIT
%
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1 483
Balance sheet
MSEK
24
Mar 31, 2010
Dec 31, 2009
Mar 31, 2009
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
13 607
1 981
5 974
5 681
11 632
15 896
1 632
11 958
64
68 425
20%
3%
9%
8%
17%
23%
2%
17%
0%
12 697
2 056
5 993
6 556
11 377
15 433
1 530
12 165
67
67 874
19%
3%
9%
10%
17%
23%
2%
18%
0%
13 208
2 344
6 517
7 804
17 000
20 513
1 780
8 336
38
77 540
17%
3%
8%
10%
22%
26%
2%
11%
0%
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
TOTAL EQUITY AND LIABILITIES
26 384
24 612
17 429
68 425
39%
36%
25%
25 671
25 735
16 468
67 874
38%
38%
24%
25 729
30 819
20 992
77 540
33%
40%
27%
April 28, 2010 www.atlascopco.com
Capital structure
Net Debt*/EBITDA
* Net Debt adjusted for the fair value of interest rate swaps
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Atlas Copco AB’s loan maturity profile
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Cash flow
MSEK
January - March
2010
2009
Operating cash surplus after tax
of which depreciation added back
Change in working capital
Increase in rental equipment, net
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
2 449
574
275
-63
2 661
-177
12
-273
-438
2 223
-1 361
* Operating cash surplus after tax in 2009 is adjusted for equity hedges in net financial items.
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1 885 *
616
1 394
-91
3 188
-291
19
-65
-337
2 851
-142
Contents
 Q1 business highlights
 Market development
 Business areas
 Financials
 Outlook
28
April 28, 2010 www.atlascopco.com
Near-term outlook
The overall demand for the Group’s products and services is
expected to improve somewhat from current levels.
Demand in most emerging markets is foreseen to develop favorably
in all business areas. Demand in North America is expected to
increase gradually, whereas Europe is expected to remain largely
unchanged.
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Committed to
sustainable productivity.
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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 and
adversely affected by other factors such as the effect of economic
conditions, exchange-rate and interest-rate movements, political
risks, the impact of competing products and their pricing, product
development, commercialization and technological difficulties, supply
disturbances, and major customer credit losses.”
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April 28, 2010 www.atlascopco.com