Transcript Atlas Copco Group

Atlas Copco Group
Q1 Results
April 24, 2008
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April 24, 2008, www.atlascopco.com
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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April 24, 2008, www.atlascopco.com
Q1 - Highlights
 Solid growth continues over strong comparison period
– 24th consecutive quarter of organic growth
– Contribution from all regions and business areas
 Emerging markets well over 40% of orders received
 Strong profit increase despite currency headwind
– Two percentage-point effect on the operating margin
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Q1 - Figures in summary
 Orders up 21%; 11% organic growth
 Revenues up 28% to MSEK 17 122; 18% organic growth
 Operating profit up 28% to MSEK 3 248
– Operating margin at 19.0% (19.0)
 Profit before tax at MSEK 3 026 (2 477)
 Earnings per share for continuing operations SEK 1.79 (1.45)
 Operating cash flow MSEK 900 (845)
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Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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Orders received - Local currency
Group total +24% YTD
Structural change +13%
42
19
+26
17
+30
10
8
+18
+19
+29
4
March 2008
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
+7
Q1 - The Americas
 Strong performance in North
America
– Increased activity in US coal mining
generating strong order intake
– Improvement in demand from
previously slow motor vehicle
industry
19
+30
– Continued weakness in parts of the
construction segment
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 Sustained high growth rate in South
America
March 2008
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
+29
Q1 - Europe and Africa/Middle East
 Good development in Europe
– Very high growth rates in Eastern Europe
– Good demand from manufacturing
industries
– Mining segment strong, while construction
related to housing continued to slow down
in Western Europe
 Solid growth in the Africa / Middle East
region
– Good demand for construction equipment
in Northern Africa and the Middle East
March 2008
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
42
10
+26
+19
Q1 - Asia and Australia
 Stable, high growth in Asia
– Strong demand for both equipment
and aftermarket products
– India and China remain strong
markets, while Japan slows down
17
+18
 Continued strength in Australian
mining
4
March 2008
A
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B
A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
+7
Organic* Growth per Quarter
Atlas Copco Group, continuing operations
 Change in orders received in % vs. same quarter previous year
30
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
08 Q1
08 Q2
08 Q3
08 Q4
-10
*Volume and price
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April 24, 2008, www.atlascopco.com
Atlas Copco Group – Sales Bridge
MSEK
2007
Structural change, %
Currency, %
Price, %
Volume, %
Total, %
2008
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January - March
Orders
Revenues
Received
16 120
13 390
+13
+13
-3
-3
+3
+3
+8
+15
+21
+28
19 505
17 122
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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April 24, 2008, www.atlascopco.com
Atlas Copco Group
Operating Profit and Return On Capital Employed (ROCE)
by Business Area
MSEK
12 month values, period ending
Compressor Technique
Construction and Mining Technique
Industrial Technique
Eliminations/Common Group Functions
Atlas Copco Group
*excluding write-down of RSC notes
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Revenues Operating Operating ROCE
profit
margin
Mar. 2008 Mar. 2008 Mar. 2008 Mar. 2008
33 159
6 952
21.0%
63%
27 391
4 724
17.2%
30%
7 105
1 573
22.1%
56%
-568
-476
67 087
12 773
19.0%
33%*
Compressor Technique
 Continued growth
– Organic order growth 12% excluding Gas and Process business
– Good growth in all regions
– Strong sales of both equipment and aftermarket
 Operating profit at MSEK 1 643, a margin of 20.4%
– Heavy negative impact of currencies
– Price increases offset increased material costs
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Compressor Technique
Organic* revenue growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
25
20
15
15
10
10
5
5
0
0
-5
-5
-10
-10
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
08 Q1
08 Q2
08 Q3
08 Q4
20
*Volume and price
Quarterly operating margins include Prime Energy from Q1 2006.
15
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Construction and Mining Technique
 Organic order growth 14%
– Continued strong demand from mining industry
– Housing related construction demand slower in
some countries
 Operating profit up 37%, margin at 17.0%
– Margin negatively affected by currency
changes
– Dynapac margin at 9.6%, excluding
restructuring costs
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Construction and Mining Technique
Organic* revenue growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
30
25
20
20
15
15
10
10
5
5
0
0
-5
-5
-10
-10
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
08 Q1
08 Q2
08 Q3
08 Q4
25
*Volume and price
17
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Industrial Technique
 Strong organic growth
– 9% in orders
– 14% in revenues
 Motor vehicle industry showing good growth
 Operating profit margin at 22.6%
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Industrial Technique
Organic* revenue growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
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08 Q4
08 Q3
08 Q2
08 Q1
07 Q4
07 Q3
07 Q2
07 Q1
06 Q4
06 Q3
06 Q2
06 Q1
05 Q4
-5
05 Q3
-5
05 Q2
0
05 Q1
0
04 Q4
5
04 Q3
5
04 Q2
10
04 Q1
10
03 Q4
15
03 Q3
15
03 Q2
20
03 Q1
20
*Volume and price
19
25
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
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April 24, 2008, www.atlascopco.com
Group Total
MSEK
%
Orders received
19 505
16 120
+21
Revenues
17 122
13 390
+28
Operating profit
3 248
2 541
+28
- as a percentage of revenues
19.0
19.0
Profit before tax
3 026
2 477
- as a percentage of revenues
17.7
18.5
Profit from continuing operations
2 192
1 773
184
53
Profit for the period
2 376
1 826
Basic earnings per share, SEK
1.94
1.49
- of which continuing operations, SEK
1.79
1.45
Profit from discontinued operations, net of tax
Return on capital employed, %
21
January - March
2008
2007
1)
Excluding write-down of RSC notes
2)
Including discontinued operations
April 24, 2008, www.atlascopco.com
33
1)
34
2)
+22
+24
Profit Bridge
January – March, 2008 vs 2007
MSEK
Q1 2008
Organic Grow th
Price/Volum e
Currency
One-tim e item s
Acq./Div.
Q1 2007
Atlas Copco Group
22
Revenues
17 122
2 312
-360
1 780
13 390
EBIT
3 248
942
-380
145
2 541
%
19.0%
41%
-
8%
19.0%
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Profit Bridge – by Business Area
January - March, 2008 vs 2007
Q1 2008
MSEK
Organic Grow th
Currency
Price/Volum e
One-tim e item s
Q1 2007
Acq./Div.
Com pressor Technique
Revenues
8 053
989
-150
420
6 794
EBIT
1 643
383
-205
25
1 440
%
20.4%
39%
-
6%
21.2%
Revenues
7 344
1 131
-180
1 300
5 093
EBIT
1 252
460
-235
115
912
%
17.0%
41%
-
9%
17.9%
1 825
216
-40
58
1 591
412
46
-20
8
378
22.6%
21%
-
14%
23.8%
Construction & Mining Technique
Industrial Technique
Revenues
EBIT
%
One-time items include a capital gain for the divestment of a rental company in Compressor Technique and restructuring costs in Construction and Mining Technique
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Balance Sheet
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MSEK
Mar 31, 2008
Dec 31, 2007
Mar 31, 2007
Intangible assets
Rental equipment
Other property, plant and equipment
Other fixed assets
Inventories
Receivables
Current financial assets
Cash and cash equivalents
TOTAL ASSETS
11 475
1 712
4 914
4 437
13 721
17 737
1 265
3 975
59 236
19%
3%
8%
7%
23%
30%
2%
7%
11 665
1 906
4 894
4 245
12 725
16 627
1 124
3 473
56 659
21%
3%
9%
7%
22%
29%
2%
6%
4 722
2 010
4 000
3 554
9 783
13 523
944
16 139
54 675
9%
4%
7%
7%
18%
25%
2%
30%
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
TOTAL EQUITY AND LIABILITIES
16 181
23 772
19 283
59 236
27%
40%
33%
14 640
24 397
17 622
56 659
26%
43%
31%
35 730
4 564
14 381
54 675
65%
8%
26%
April 24, 2008, www.atlascopco.com
Capital Structure
Net Debt/EBITDA
3,0
2,5
2,7
2,0
1,5
2,2
1,9
1,9
1,6
1,0
1,5
1,4
1,1
0,8
0,5
1,3
0,9
0,0
-0,5
-1,1
-1,0
-1,5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Q1
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Cash Flow
Continuing operations
26
MSEK
January - March
2008
2007
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
3 304
469
-1 625
1 679
-543
127
-363
-779
900
128
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2 018
414
-506
1 512
-528
172
-311
-667
845
-219
Contents
 Q1 Business Highlights
 Market Development
 Business Areas
 Financials
 Outlook
27
April 24, 2008, www.atlascopco.com
Near-term Outlook
The demand for Atlas Copco’s products and services from most
customer segments and regions is expected to remain at a high
level.
The positive outlook includes the main part of the construction
segment, while certain sectors, primarily related to housing is
expected to remain weak in North America and parts of Europe.
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29
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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