Q1 results 2021
April 27, 2021
Q1 in brief
• Record order intake
‒ Primarily due to semiconductor investments
• Growth in all business areas and in most customer segments
‒ Both in equipment and service
• Improved profit and cash flow
• Continued strong product development and acquisition activity
2
Atlas Copco – Q1 results 2021
Q1 financials
• Orders received were MSEK 30 468 (28 039), organic growth of 18%
35 000
35%
• Revenues were MSEK 26 021 (25 098), organic growth of 13%
30 000
30%
25 000
25%
20 000
20%
15 000
15%
10 000
10%
5 000
5%
• Operating profit was MSEK 5 387 (5 124), margin at 20.7% (20.4)
‒ Adjusted operating profit at MSEK 5 649 (5 099), margin of 21.7% (20.3)
• Profit for the period was MSEK 4 117 (3 840)
• Basic earnings per share were SEK 3.38 (3.16)
• Operating cash flow increased to MSEK 4 321 (3 825)
• Return on capital employed was 23% (29)
0
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
3
Atlas Copco – Q1 results 2021
Orders received, MSEK
Revenues, MSEK
Operating margin, %
Adjusted operating margin, %
Orders received – local currency
100
+20
30
22
+10
+17
39
5
4
March 31, 2021
Share of orders received,
year-to-date, %
4
Atlas Copco – Q1 results 2021
Year-to-date vs. previous
year, %
+21
-1
+34
5
Atlas Copco – Q1 results 2021
*2012-2017 excluding Mining and Rock Excavation Technique business area (now part of Epiroc AB).
21 Q1
20 Q4
20 Q3
20 Q2
20 Q1
19 Q4
19 Q3
19 Q2
19 Q1
18 Q4
18 Q3
18 Q2
18 Q1
17 Q4*
17 Q3*
17 Q2*
17 Q1*
16 Q4*
16 Q3*
16 Q2*
16 Q1*
15 Q4*
15 Q3*
15 Q2*
15 Q1*
14 Q4*
14 Q3*
14 Q2*
14 Q1*
13 Q4*
13 Q3*
13 Q2*
13 Q1*
12 Q4*
12 Q3*
12 Q2*
12 Q1*
Order growth per quarter
Organic growth, %
30
25
20
15
10
5
0
-5
-10
-15
-20
Sales bridge
MSEK
2020
Structural change, %
Currency, %
Organic*, %
Total, %
2021
*Volume, price and mix.
6
Atlas Copco – Q1 results 2021
January - March
Orders
received
Revenues
28 039
25 098
+3
+2
-12
-11
+18
+13
+9
+4
30 468
26 021
Orders by business area and organic order development*
Power
Technique
Org. order dev. +7%
11%
Industrial
Technique
Org. order dev. +13%
Org. order dev. +13%
16%
46%
27%
Vacuum
Technique
Org. order dev. +38%
* Share of Group orders received 12 months ending March 2021.
3 month organic order development compared to previous year.
7
Atlas Copco – Q1 results 2021
Compressor
Technique
Compressor Technique
• Record order level, organic growth of 13%
‒ Strong growth for all types of compressors, except gas and
process compressors
‒ Continued growth for service
• Revenues increased 11% organically
• Operating profit margin increased to 23.7% (21.7)
15 000
30%
12 500
25%
10 000
20%
7 500
15%
5 000
10%
2 500
5%
‒ Supported by increased volumes, negative currency effect
• ROCE at 84% (80)
Innovation:
The Atlas Copco G 2-7, a new range of small-sized industrial
compressors with high energy efficiency, low carbon footprint and
reduced noise level of 20% compared to similar products.
8
Atlas Copco – Q1 results 2021
0
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Orders received, MSEK
Revenues, MSEK
Operating margin, %
Vacuum Technique
10 000
50%
9 000
45%
8 000
40%
• Record revenues, up 23% organically
7 000
35%
• Operating profit margin at 24.9% (24.3)
6 000
30%
5 000
25%
4 000
20%
3 000
15%
2 000
10%
1 000
5%
• Record orders and 38% organic growth
‒ Particularly strong growth for semiconductor equipment
‒ Also strong growth for industrial vacuum equipment and service
‒ Supported by increased volumes, negative currency effect
• ROCE at 20% (22)
Innovation:
The Leybold DRYVAC DV 800, a new vacuum pump with smart
connectivity capabilities for industrial applications, with increased
energy efficiency compared to older technologies.
9
Atlas Copco – Q1 results 2021
0
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Orders received, MSEK
Revenues, MSEK
Operating margin, %
Adjusted operating margin, %
Industrial Technique
• Organic order growth of 13%
‒ Increased equipment demand from both automotive and general
industry
‒ Growth for service
• Revenues increased 12% organically
• Operating profit margin at 19.5% (19.1)
‒ Supported by increased volumes, negative currency effect and
dilution from acquisitions
6 000
30%
5 000
25%
4 000
20%
3 000
15%
2 000
10%
1 000
5%
• ROCE at 12% (31)
‒ Negatively affected by recent acquisitions
Innovation:
The new Henrob 4mm Self-pierce system, with the newly developed rivets
and smaller riveting tooling. Carmakers will retain structural joint strength
and consistency in safety-critical areas despite thinner frames in the car body.
10
Atlas Copco – Q1 results 2021
0
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Orders received, MSEK
Operating margin, %
Revenues, MSEK
Adjusted operating margin, %
Power Technique
• Organic order growth of 7%
‒ Strong development for portable compressors and service
‒ Specialty rental orders unchanged
5 000
40%
4 000
32%
3 000
24%
2 000
16%
1 000
8%
• Revenues increased 5% organically
• Operating profit margin at 15.3% (14.2)
‒ Supported by increased volumes, partly offset by currency
• ROCE at 19% (25)
Innovation:
The new TwinPower® generator with reduced fuel consumption up
to 40% and nitrogen oxide (NOx) emissions reduced by up to 80%
compared to other models.
11
Atlas Copco – Q1 results 2021
0
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Orders received, MSEK
Revenues, MSEK
Operating margin, %
Adjusted operating margin, %
Group total
January – March 2021 vs. 2020
35 000
35%
30 000
30%
25 000
25%
20 000
20%
7%
15 000
15%
5%
10 000
10%
5 000
5%
January - March
2021
2020
MSEK
Orders received
30 468
28 039
9%
Revenues
26 021
25 098
4%
EBITA*
– as a percentage of revenues
5 742
22.1
5 430
21.6
6%
Operating profit
5 387
5 124
5%
20.7
20.4
-44
5 343
-114
5 010
20.5
20.0
-1 226
22.9
4 117
3.38
-1 170
23.4
3 840
3.16
23
27
29
33
– as a percentage of revenues
Net financial items
Profit before tax
– as a percentage of revenues
Income tax expense
– as a percentage of profit before tax
Profit for the period
Basic earnings per share, SEK
Return on capital employed, %
Return on equity, %
* Opera ti ng profi t excl udi ng a morti za ti on of i nta ngi bl es rel a ted to a cqui s i ti ons .
12
Atlas Copco – Q1 results 2021
7%
0
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021
Orders received, MSEK
Revenues, MSEK
Operating margin, %
Adjusted operating margin, %
Profit bridge
January – March 2021 vs. 2020
MSEK
Atlas Copco Group
Revenues
Operating profit
*LTI= Long term incentive
13
Atlas Copco – Q1 results 2021
Q1 2021
26 021
5 387
20.7%
Volume, price,
mix and other
3 208
1 590
Currency
Acquisitions
-2 895
-1 065
610
25
Items affecting
comparability
30
Share-based
LTI* programs
-317
Q1 2020
25 098
5 124
20.4%
Profit bridge – by business area
January – March 2021 vs. 2020
MSEK
Compressor Technique
Revenues
Operating profit
Vacuum Technique
Revenues
Operating profit
Industrial Technique
Revenues
Operating profit
Power Technique
Revenues
Operating profit
14
Atlas Copco – Q1 results 2021
Volume, price,
mix and other
Currency
Acquisitions
11 522
2 730
23.7%
1 139
670
-1 310
-455
105
-5
6 808
1 695
24.9%
1 399
578
-785
-375
35
-5
4 713
917
19.5%
485
218
-435
-165
470
35
3 121
476
15.3%
171
73
-375
-70
0
0
Q1 2021
Items affecting
comparability
Q1 2020
0
11 588
2 520
21.7%
0
6 159
1 497
24.3%
30
4 193
799
19.1%
0
3 325
473
14.2%
Balance sheet
MSEK
15
Atlas Copco – Q1 results 2021
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Intangible assets
Fixed assets and other non-current assets
Inventories
Receivables
Cash and current financial assets
Total assets
47 789
16 997
14 696
28 491
15 415
123 388
41 319
20 789
16 159
28 064
13*653
119 984
45 840
16 581
13 450
25 777
11 718
113 366
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
Total equity and liabilities
61 168
26 839
35 381
123 388
58 812
27 511
33 661
119 984
53 534
28 134
31 698
113 366
Cash flow
MSEK
Operating cash surplus
of which depreciation added back
Net financial items
Taxes paid
Pension funding
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
Adjustment, currency hedges of loans
Operating cash flow
Company acquisitions/ divestments
16
Atlas Copco – Q1 results 2021
January - March
2021
2020
6 773
6 420
1 278
1 291
138
-48
-1 066
-1 075
-75
-81
-500
-336
-84
-150
5 186
4 730
-340
-318
-658
-411
-281
-692
-207
4 321
-213
3 825
-124
-4 084
Near-term outlook
Although the world’s economic development remains uncertain, Atlas Copco expects that
the customers’ business activity level will remain at the high current level.
17
Atlas Copco – Q1 results 2021
atlascopcogroup.com
Forward-looking statements
“Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors
explicitly commented uponother factors could have a material effect on the actual outcome. Such factors include, but are not
limited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of
competing products and their pricing, product development, commercialization and technological difficulties, interruptions in
supply, and major customer credit losses.”
19
Atlas Copco – Q1 results 2021