Atlas Copco Group
Q1 2013 results
April 29, 2013
Q1 in brief
Solid demand for service, weaker for equipment
 Service business continues to develop well
 Equipment demand somewhat lower sequentially
– Stable orders for most industrial equipment
– Orders decreased for mining equipment
 Solid profitability
 Atlas Copco 140 years
2
April 29, 2013
Q1 figures in summary
 Orders received decreased to MSEK 21 008, organic decline of 11%
 Revenues decreased by 9% to MSEK 20 227, organic decline of 5%
 Operating profit decreased to MSEK 4 156 (4 614)
 Operating margin at 20.5% (20.7)
 Profit before tax at MSEK 4 045 (4 494)
 Basic earnings per share SEK 2.46 (2.81)
 Operating cash flow at MSEK 1 628 (1 441)
3
April 29, 2013
Orders received - local currency
20
100
-11
31
-1
-8
23
12
9
0
-21
-21
5
March 2013
A
4
April 29, 2013
B
A=
B=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
-44
Q1 - the Americas
 North America
– Healthy demand from the manufacturing and
construction industries
– Lower orders received for mining equipment
20
-8
– Service continued to grow
 South America
– Orders received decreased, primarily due to
lower demand for mining equipment
March 2013
A
5
April 29, 2013
B
A=
B=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
9
-21
Q1 - Europe and Africa/Middle East
 Europe
– Orders received increased somewhat sequentially
– Improved orders for drilling equipment for mining and
tunneling
31
-1
– Strongest growth in Germany and Turkey
 Africa / Middle East
12
– Higher order intake sequentially
– Improvements in Southern Africa and the Middle East
March 2013
A
6
April 29, 2013
B
A=
B=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
-21
Q1 - Asia and Australia
 Asia
– Order intake slightly higher sequentially
– Strongest growth in South East Asia
– Sequential improvement in China and India
23
0
 Australia
– Lower demand from the mining industry
5
March 2013
A
7
April 29, 2013
B
A=
B=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
-44
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
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
April 29, 2013
Order cancellations, %
Atlas Copco Group – sales bridge
MSEK
2012
Structural change, %
Currency, %
Price, %
Volume, %
Total, %
2013
9
April 29, 2013
January - March
Orders
received
Revenues
24 827
22 254
+1
+1
-5
-5
+2
+1
-13
-6
-15
-9
21 008
20 227
Atlas Copco Group
Revenues per business area
Construction
Technique 14%
39%
Mining
37%
and Rock
Excavation
Technique
10%
Industrial
Technique
12 months until March 2013
10
April 29, 2013
Compressor
Technique
Compressor Technique
 Stable order volumes for industrial
compressors
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
%
%
 Service and parts continued to grow
+30
 Operating margin improved to 22.9%
(22.1)
+25
25
+20
20
+15
15
+10
10
– Supported by efficiency improvements
 Launch of break-through energyefficient compressor
+5
5
+0
0
-5
-5
-10
-10
-15
-15
2009 2010 11
Q1
11
April 29, 2013
30
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
Industrial Technique
 Weaker demand
– Positive development in North America,
negative in Europe and Asia
 Operating margin at 22.3% (24.0)
– Affected by lower volumes
 Acquisitions to broaden the product
portfolio
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
+40
%
%
+30
30
+20
20
+10
10
+0
0
-10
-10
-20
-20
-30
-30
-40
-40
2009 2010 11
Q1
12
April 29, 2013
40
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
Mining and Rock Excavation Technique
 Equipment orders decreased
– Cautiousness to invest affected demand
from mining customers
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
+50
%
%
50
– Improvement in civil engineering
 Good demand level for service and parts
 Operating margin at 23.4% (24.6)
 Acquisition of rock drilling tools business
in China
+40
40
+30
30
+20
20
+10
10
+0
0
-10
-10
-20
-20
-30
-30
2009 2010 11
Q1
13
April 29, 2013
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
Construction Technique
 Organic order intake decreased
Organic* revenue growth: Change vs. same period previous year, %
– Asia and North America improved
– Weak demand in Europe
Operating margin, %
+40
%
%
 Operating margin at 9.5% (10.7)
+30
15
 New visual identity for road construction
equipment
+20
10
+10
5
+0
0
-10
-5
-20
-10
-30
-15
-40
-20
2009 2010 11
Q1
14
20
April 29, 2013
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
Group total
January – March 2013 vs. 2012
MSEK
January - March
2013
2012
Orders received
Revenues
21 008
20 227
24 827
22 254
-15%
-9%
4 156
20.5
4 045
20.0
2 988
4 614
20.7
4 494
20.2
3 409
-10%
2.46
34
2.81
37
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
April 29, 2013
%
-10%
-12%
Profit bridge
January – March 2013 vs. 2012
MSEK
Atlas Copco Group
Revenues
EBIT
%
16
April 29, 2013
Volume, price,
Q1 2013 mix and other
20 227
4 156
20.5%
-1 092
-265
24.3%
Currency
One-time items
Acquisitions
Share based
LTI programs
-1 090
-220
155
0
0
27
Q1 2012
22 254
4 614
20.7%
Profit bridge – by business area
January – March 2013 vs. 2012
Volume, price,
Q1 2013 mix and other
MSEK
Compressor Technique
Revenues
7 842
EBIT
1 792
%
22.9%
Industrial Technique
Revenues
2 183
EBIT
487
%
22.3%
Mining and Rock Excavation Technique
Revenues
7 562
EBIT
1 771
%
23.4%
Construction Technique
Revenues
2 761
EBIT
263
%
9.5%
17
April 29, 2013
Currency
One-time items
Acquisitions
-164
48
neg
-405
-95
105
5
8 306
1 834
22.1%
-178
-111
62.4%
-110
5
0
0
2 471
593
24.0%
-507
-131
25.8%
-415
-170
50
-5
8 434
2 077
24.6%
-285
-56
19.6%
-160
-25
0
0
3 206
344
10.7%
Q1 2012
Balance sheet
MSEK
18
April 29, 2013
Mar. 31, 2013
Dec. 31, 2012
Mar. 31 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
16 095
2 095
6 850
3 935
17 645
21 282
1 455
17 136
1
86 494
18.6%
2.4%
7.9%
4.5%
20.4%
24.6%
1.7%
19.8%
0.0%
15 879
2 030
6 846
3 481
17 653
21 155
1 333
12 416
1
80 794
19.7%
2.5%
8.5%
4.3%
21.8%
26.2%
1.6%
15.4%
0.0%
15 649
2 164
6 620
3 693
18 509
22 300
2 080
10 655
46
81 716
19.2%
2.6%
8.1%
4.5%
22.7%
27.3%
2.5%
13.0%
0.1%
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
TOTAL EQUITY AND LIABILITIES
36 157
27 050
23 287
86 494
41.8%
31.3%
26.9%
34 185
23 201
23 408
80 794
42.3%
28.7%
29.0%
31 215
26 406
24 095
81 716
38.2%
32.3%
29.5%
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
April 29, 2013
January - March
2013
2012
4 486
5 371
633
648
-642
372
-1 089
-1 500
-185
-2 027
-217
-194
2 353
2 022
-287
-405
-438
-176
-725
-581
1 628
1 441
-443
-561
Near-term outlook
The overall demand for the Group’s products and services is
expected to remain at the current level.
20
April 29, 2013
Committed to
sustainable productivity.
22
April 29, 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
April 29, 2013