Atlas Copco Group
Q2 2013 results
July 18, 2013
Q2 in brief
 Service business continues to develop well
 Industrial and construction demand improved somewhat
 Weaker demand for mining equipment
 New innovative products
 Solid profitability – negative currency effects
 Strong cash flow
2
July 18, 2013
Q2 figures in summary
 Orders received were MSEK 21 135, organic decline of 5%
 Revenues down 7% to MSEK 21 843, organic decline of 2%
 Operating profit decreased to MSEK 4 533 (5 028)
– Currency effect MSEK -535
 Operating margin at 20.8% (21.5)
 Profit before tax at MSEK 4 279 (4 843)
 Basic earnings per share SEK 2.58 (2.98)
 Operating cash flow at MSEK 3 291 (1 891)
3
July 18, 2013
Orders received - local currency
100
31
20
-7
-7
0
-4
+2
-5
22
11
10
-13
-6
0
-1
+16
-5
6
June 2013
A
4
July 18, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
-47
-50
Q2 - the Americas
 North America
– Good order intake for industrial compressors
and tools
– Lower order intake for mining equipment
20
-7
-5
– Service and parts business remained healthy
 South America
– Orders received improved sequentially for all
business areas
– Weak demand for mining equipment
June 2013
A
5
July 18, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
10
-13
-5
Q2 - Europe and Africa/Middle East
 Europe
– Good order intake achieved for industrial compressors
and tools
– Orders increased for construction equipment, but
decreased for mining equipment
31
0
+2
– Strong growth in the U.K., Germany and Turkey
11
 Africa / Middle East
– Increased order intake for all business areas
June 2013
A
6
July 18, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
-6
+16
Q2 - Asia and Australia
 Asia
– Orders received increased sequentially
– Sequential growth in China for all
business areas
– Soft demand in India
22
0
-1
 Australia
– Significant decline in order intake due to
weak demand from the mining industry
June 2013
A
7
July 18, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
6
-47
-50
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
09 Q1
09 Q2
09 Q3
09 Q4
10 Q1
10 Q2
10 Q3
10 Q4
11 Q1
11 Q2
11 Q3
11 Q4
12 Q1
12 Q2
12 Q3
12 Q4
13 Q1
13 Q2
Organic* growth per quarter
Atlas Copco Group, continuing operations
 Change in orders received in % vs. same quarter previous year
40
8
%
30
20
10
0
-10
-20
-30
-40
Organic growth, %
*Volume and price
July 18, 2013
Order cancellations, %
Atlas Copco Group – sales bridge
MSEK
2012
Structural change, %
Currency, %
Price, %
Volume, %
Total, %
2013
9
July 18, 2013
April - June
Orders
received
Revenues
23 263
23 437
+1
+1
-5
-6
+2
+2
-7
-4
-9
-7
21 135
21 843
January - June
Orders
received
Revenues
48 090
45 691
+1
+1
-5
-5
+2
+1
-10
-5
-12
-8
42 143
42 070
Atlas Copco Group
Revenues per business area
Construction
Technique 14%
39%
Mining
37%
and Rock
Excavation
Technique
10%
Industrial
Technique
12 months until June 2013
10
July 18, 2013
Compressor
Technique
Compressor Technique
 Industrial compressor business
remained stable
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
%
%
 Service and parts continued to grow
+30
 Operating margin improved to 23.0%
(22.0)
+25
25
+20
20
+15
15
+10
10
+5
5
+0
0
-5
-5
-10
-10
– Supported by efficiency improvements
 Several new large compressors
introduced, all with significant
efficiency improvments
-15
-15
2009 2010 11
Q1
11
July 18, 2013
30
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
Industrial Technique
 4% organic order growth
– Strong order intake from the motor
vehicle industry
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
+40
%
%
– Sequential improvement for general
industry
+30
30
– Growth in Europe and Asia
+20
20
+10
10
+0
0
 Operating margin at 21.5% (22.8)
– Affected by currency and lower invoicing
 Versatile tool wins design award
-10
-10
-20
-20
-30
-30
-40
-40
2009 2010 11
Q1
12
40
July 18, 2013
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
Mining and Rock Excavation Technique
 Weak demand for mining equipment
Organic* revenue growth: Change vs. same period previous year, %
 Civil engineering business more stable
Operating margin, %
%
%
 Stable service, parts and consumables
business
+50
+40
40
 Operating margin at 22.1% (24.8)
+30
30
+20
20
+10
10
+0
0
– Negatively affected by currency effects and
lower volumes
 Bob Fassl resigns as Business Area
President
-10
-10
-20
-20
-30
-30
2009 2010 11
Q1
13
July 18, 2013
50
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
Construction Technique
 Organic order growth of 2%
Organic* revenue growth: Change vs. same period previous year, %
 Equipment orders largely flat
Operating margin, %
– Sequential growth in China, India, Brazil
and in western Europe
 Service and parts business remained
healthy
 Operating margin at 11.2% (13.2)
– Negatively affected by currency and
lower volumes
 Several innovative products introduced
+40
%
%
+30
15
+20
10
+10
5
+0
0
-10
-5
-20
-10
-30
-15
-20
-40
2009 2010 11
Q1
14
July 18, 2013
20
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
Group total
April – June 2013 vs. 2012
MSEK
Orders received
Revenues
Operating profit
– as a percentage of revenues
Profit before tax
– as a percentage of revenues
Profit for the period
Basic earnings per share, SEK
Return on capital employed, %
15
July 18, 2013
April - June
2013
2012
%
21 135
21 843
23 263
23 437
-9%
-7%
4 533
20.8
4 279
19.6
3 137
5 028
21.5
4 843
20.7
3 620
-10%
2.58
32
2.98
39
-12%
-13%
Profit bridge
April – June 2013 vs. 2012
MSEK
Atlas Copco Group
Revenues
EBIT
%
16
July 18, 2013
Volume, price,
Q2 2013 mix and other
21 843
4 533
20.8%
-529
6
na
Currency
One-time items
Acquisitions
Share based
LTI programs
-1 295
-535
230
-5
39
Q2 2012
23 437
5 028
21.5%
Profit bridge – by business area
April – June 2013 vs. 2012
Volume, price,
Q2 2013 mix and other
MSEK
Compressor Technique
Revenues
8 556
EBIT
1 969
%
23.0%
Industrial Technique
Revenues
2 243
EBIT
482
%
21.5%
Mining and Rock Excavation Technique
Revenues
7 857
EBIT
1 738
%
22.1%
Construction Technique
Revenues
3 403
EBIT
381
%
11.2%
17
July 18, 2013
Currency
One-time items
Acquisitions
229
243
106.1%
-455
-185
90
0
8 692
1 911
22.0%
-87
-20
23.0%
-115
-50
25
0
2 420
552
22.8%
-569
-198
34.8%
-535
-255
115
-5
8 846
2 196
24.8%
-104
-28
26.9%
-190
-80
0
0
3 697
489
13.2%
Q2 2012
Balance sheet
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Intangible assets
Rental equipment
Other property, plant and equipment
Other non-current assets
Inventories
Receivables
Current financial assets
Cash and cash equivalents
Assets classified as held for sale
TOTAL ASSETS
16 660
2 177
6 957
4 114
18 125
22 603
1 563
14 076
1
86 276
15 879
2 030
6 846
3 481
17 653
21 155
1 333
12 416
1
80 794
15 873
1 879
6 855
3 303
19 286
23 376
1 308
4 160
1 484
77 524
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
TOTAL EQUITY AND LIABILITIES
34 031
28 400
23 845
86 276
34 185
23 201
23 408
80 794
28 826
23 711
24 987
77 524
MSEK
18
July 18, 2013
Cash flow
MSEK
Operating cash surplus
of which depreciation added back
Net financial items
Taxes paid
Change in working capital
Increase in rental equipment, net
Cash flows from operating activities
Investments of property, plant & eq., net
Other investments, net
Cash flow from investments
Operating cash flow
Company acquisitions/ divestments
19
July 18, 2013
2013
5 239
677
425
-1 050
-471
-227
3 916
-261
-364
-625
3 291
-565
April - June
2012
5 522
661
-819
-1 331
-401
-193
2 778
-438
-449
-887
1 891
-139
Near-term outlook
The overall demand for the Group’s products and services is
expected to remain at the current level.
20
July 18, 2013
Committed to
sustainable productivity.
22
July 18, 2013
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.”
23
July 18, 2013