COMMITTED TO
SUSTAINABLE
PRODUCTIVITY
Q4 2014 results
January 29, 2015
2
Q4 IN BRIEF
 Record orders received and revenues
 2% organic order growth
– Solid growth in the service business
– Strong order intake for industrial tools and assembly systems
– Robust sales of small compressors, low for large
– Mining and construction equipment orders largely unchanged at low level
 Positive development in North America and Europe, negative in Asia
 Record operating cash flow
 Proposed distribution to shareholders of SEK 12.00 per share
– Dividend of SEK 6.00 (5.50) per share to be paid in two installments
– Redemption of SEK 6.00 per share
January 29, 2015
Atlas Copco - Q4 results 2014
3
Q4 FIGURES IN SUMMARY
 Orders received increased 24% to MSEK 24 375, organic growth of 2%
 Revenues were MSEK 25 360, organic decline of 3%
 Adjusted operating profit was MSEK 4 886 (4 098)
– Reported operating profit was MSEK 4 771 (4 155)
– Items affecting comparability were MSEK -115 (+57)
 Adjusted operating margin at 19.3% (19.3)
– Reported operating margin at 18.8% (19.5)
 Profit before tax at MSEK 4 436 (3 925)
 Basic earnings per share SEK 2.74 (2.39)
 Operating cash flow at MSEK 5 083 (2 563)
January 29, 2015
Atlas Copco - Q4 results 2014
4
2014 IN SUMMARY
 Orders received increased 15% to a record of MSEK 93 873
– 1% organic order growth, supported by a positive development of the service business
– Higher orders for industrial tools and small- and medium-sized compressors
– Lower orders for large compressors and for mining and construction equipment
 Strong North America, weak Asia
 Record revenues at MSEK 93 721 and operating cash flow at MSEK 13 869
 Operating profit of MSEK 17 015, corresponding to a margin of 18.2%
 Acquisition of Edwards vacuum solutions
January 29, 2015
Atlas Copco - Q4 results 2014
5
ORDERS RECEIVED - LOCAL CURRENCY
100
+13
+14
+3
+4
Excl. Edwards
30
Excl. Edwards
23
Excl. Edwards
+26
+23
+10
+9
+14
+4
+8
24
Excl. Edwards
10
Excl. Edwards
9
Excl. Edwards
December 2014
+10
+6
-3
+5
-4
-1
-1
-2
-1
+16
+21
-6
-4
4
A
B
C
A=
Share of orders received, year-to-date, %
B=
Year-to-date vs. previous year, %
C=
Last 3 months vs. previous year, %
January 29, 2015
Atlas Copco - Q4 results 2014
Excl. Edwards
+9
+18
+8
+10
6
ORGANIC* ORDER GROWTH PER QUARTER
Atlas Copco Group, continuing operations
40
30
20
10
0
-10
-20
-30
* Volume and price
04
04
04
04
05
05
05
05
06
06
06
06
07
07
07
07
08
08
08
08
09
09
09
09
10
10
10
10
11
11
11
11
12
12
12
12
13
13
13
13
14
14
14
14
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
-40
Organic growth, %
January 29, 2015
Atlas Copco - Q4 results 2014
Order cancellations, %
7
ATLAS COPCO GROUP – SALES BRIDGE
MSEK
2013
Structural change, %
Currency, %
Price, %
Volume, %
Total, %
2014
January 29, 2015
Atlas Copco - Q4 results 2014
October - December
Orders
received
Revenues
19 714
21 266
+13
+14
+9
+8
+1
+1
+1
-4
+24
+19
24 375
25 360
January - December
Orders
received
Revenues
81 290
83 888
+12
+12
+2
+2
+1
+1
+0
-3
+15
+12
93 873
93 721
8
ATLAS COPCO GROUP
Revenues by business area
Construction
Technique
16%
45%
Compressor
Technique
Mining and Rock
Excavation 27%
Technique
Edwa rds, 9%
12%
Industrial
Technique
January - December 2014
January 29, 2015
Atlas Copco - Q4 results 2014
9
COMPRESSOR TECHNIQUE
 Stable equipment orders and growth in service
– Robust demand for small- and medium sized machines
Organic* revenue growth: Change vs. same period previous year, %
– Soft order intake for larger machines
– Weak demand in Asia
 A strong quarter for Edwards vacuum solutions
 Adjusted operating margin at 22.2% (22.8)
– Items affecting comparability of MSEK -120
A variable speed drive
(VSD) vacuum pump
for general industrial
applications
January 29, 2015
Atlas Copco - Q4 results 2014
Operating margin, %
+ 30
Growth, %
Margin, %
30
+ 25
25
+ 20
20
+ 15
15
+ 10
10
+5
5
+0
0
-5
-5
- 10
-10
- 15
-15
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
13
Q3
13
Q4
14
Q1
14
Q2
14
Q3
14
Q4
Organic revenue growth has not been restated for 2012 and 2013 following the
move of Specialty Rental from Compressor Technique to Construction Technique
10
INDUSTRIAL TECHNIQUE
 Record quarter, with strong growth in Asia
 A good start for Henrob
Organic* revenue growth: Change vs. same period previous year, %
 Solid growth of the service business
 Operating margin at 22.6% (23.1)
– Supported by volume and currency,
but diluted by acquisitions
Quality assurance
equipment
Operating margin, %
+ 30
Growth, %
Margin , %
+ 25
25
+ 20
20
+ 15
15
+ 10
10
+5
5
+0
0
-5
-5
- 10
-10
12
Q1
January 29, 2015
Atlas Copco - Q4 results 2014
30
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
13
Q3
13
Q4
14
Q1
14
Q2
14
Q3
14
Q4
11
MINING AND ROCK EXCAVATION TECHNIQUE
 Stable demand for equipment
– Somewhat lower order intake, due to lack of large
orders
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
Adjusted operating margin, %
Growth, %
– Higher order intake in Australia, lower in Asia
Margin, %
+ 30
 Continued growth in service
 Further reduction of inventory achieved
 Operating margin at 18.5% (17.7)
+ 25
25
+ 20
20
+ 15
15
+ 10
10
+5
5
+0
0
-5
-5
- 10
-10
- 15
-15
- 20
Upgraded face-drilling
rigs for underground
mining and tunneling
January 29, 2015
Atlas Copco - Q4 results 2014
30
-20
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
13
Q3
13
Q4
14
Q1
14
Q2
14
Q3
14
Q4
12
CONSTRUCTION TECHNIQUE
 Lower orders for portable compressors and
road construction equipment, stable for
construction and demolition tools
 Favorable development for specialty rental
 Order growth in Europe and North America, but
decrease in China and Brazil
 Operating margin at 10.9% (11.1)
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
+ 20
Growth, %
Margin, %
+ 15
15
+ 10
10
+5
5
+0
0
-5
-5
- 10
-10
- 15
-15
- 20
Paver with tier IV engine
contribute to low emissions
and greater fuel savings
January 29, 2015
Atlas Copco - Q4 results 2014
20
-20
12
Q1
12
Q2
12
Q3
12
Q4
13
Q1
13
Q2
13
Q3
13
Q4
14
Q1
14
Q2
14
Q3
14
Q4
Organic revenue growth has not been restated for 2012 and 2013 following the
move of Specialty Rental from Compressor Technique to Construction Technique
13
GROUP TOTAL
2014 vs. 2013
MSEK
Orders received
Revenues
January 29, 2015
Atlas Copco - Q4 results 2014
October - December
2014
2013
January - December
%
2014
2013
%
24 375
25 360
19 714
21 266
24%
19%
93 873
93 721
81 290
83 888
15%
12%
Operating profit
– as a percentage of revenues
Profit before tax
– as a percentage of revenues
4 771
18.8
4 436
17.5
4 155
19.5
3 925
18.5
15%
17 015
18.2
16 091
17.2
17 056
20.3
16 266
19.4
0%
Profit for the period
Basic earnings per share, SEK
Return on capital employed, %
3 335
2.74
24
2 903
2.39
28
15%
12 175
10.01
12 082
9.95
13%
-1%
1%
14
PROFIT BRIDGE
October – December 2014 vs. 2013
MSEK
Atlas Copco Group
Revenues
EBIT
%
January 29, 2015
Atlas Copco - Q4 results 2014
Volume, price,
Q4 2014 mix and other
25 360
4 771
18.8%
-681
-207
30%
Currency
One-time items
and acquisitions
1 690
490
3 085
405
Share based
LTI programs
-72
Q4 2013
21 266
4 155
19.5%
15
PROFIT BRIDGE – BY BUSINESS AREA
October – December 2014 vs. 2013
Currency
One-time items
and acquisitions
-181
-52
29%
730
210
2 590
365
8 546
1 948
22.8%
101
17
17%
230
100
445
45
2 692
621
23.1%
-562
-200
36%
430
165
45
70
6 709
1 190
17.7%
-114
-19
17%
285
50
5
-20
3 449
384
11.1%
Volume, price,
Q4 2014 mix and other
MSEK
Compressor Technique
11 685
Revenues
2 471
EBIT
21.1%
%
Industrial Technique
3 468
Revenues
783
EBIT
22.6%
%
Mining and Rock Excavation Technique
6 622
Revenues
1 225
EBIT
18.5%
%
Construction Technique
3 625
Revenues
395
EBIT
10.9%
%
January 29, 2015
Atlas Copco - Q4 results 2014
Q4 2013
16
PROFIT BRIDGE
January – December 2014 vs. 2013
MSEK
Atlas Copco Group
Revenues
EBIT
%
January 29, 2015
Atlas Copco - Q4 results 2014
Volume, price,
2014 mix and other
93 721
17 015
18.2%
-2 032
-1 539
76%
Currency
One-time items
and acquisitions
Share based
LTI programs
2 035
670
9 830
940
0
-112
2013
83 888
17 056
20.3%
17
PROFIT BRIDGE – BY BUSINESS AREA
January – December 2014 vs. 2013
Currency
One-time items
and acquisitions
478
-105
nm
1 170
340
8 735
1 460
31 782
7 279
22.9%
744
219
29%
425
160
780
40
9 501
2 138
22.5%
-3 600
-1 621
45%
75
165
230
-320
29 013
6 083
21.0%
327
-25
nm
360
85
85
-25
13 967
1 733
12.4%
Volume, price,
2014 mix and other
MSEK
Compressor Technique
42 165
Revenues
8 974
EBIT
21.3%
%
Industrial Technique
11 450
Revenues
2 557
EBIT
22.3%
%
Mining and Rock Excavation Technique
25 718
Revenues
4 307
EBIT
16.7%
%
Construction Technique
14 739
Revenues
1 768
EBIT
12.0%
%
January 29, 2015
Atlas Copco - Q4 results 2014
2013
18
BALANCE SHEET
MSEK
January 29, 2015
Atlas Copco - Q4 results 2014
Dec. 31, 2014
Dec. 31, 2013
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
33 197
3 177
9 433
3 530
18 364
26 015
2 150
9 404
11
105 281
32%
3%
9%
3%
17%
25%
2%
9%
0%
17 279
2 420
6 907
3 401
16 826
21 726
1 697
17 633
2
87 891
20%
3%
8%
4%
19%
25%
2%
20%
0%
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
TOTAL EQUITY AND LIABILITIES
50 753
26 997
27 531
105 281
48%
26%
26%
39 794
27 006
21 091
87 891
45%
31%
24%
19
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 - pension funding
Operating cash flow
Company acquisitions/ divestments
January 29, 2015
Atlas Copco - Q4 results 2014
October - December
2014
2013
5 707
4 310
1 009
705
102
-71
-674
-1 348
-71
-591
1 179
603
-224
-234
6 019
2 669
-503
-341
-433
-356
-936
-697
591
5 083
2 563
-35
-415
January - December
2014
2013
20 426
19 205
3 709
2 703
-849
-523
-3 828
-4 622
-115
-634
2 056
-538
-1 303
-1 021
16 387
11 867
-1 462
-1 191
-1 056
-1 379
-2 518
-2 570
591
13 869
9 888
-8 415
-1 549
20
EARNINGS AND DIVIDENDS
25
22.38
20
15
12.00
12.24
9.00
10
8.33
11.47
10.68
9.95
10.01
8.16
4.84
5
6.09
5.22
5.14
3.71
0
1.50
2004
2.13
2.38
3.00
3.00
3.00
4.00
5.00
5.50
5.50
6.00
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
Ordinary dividend per share, SEK
*Dividend and extra dividend for 2014 as proposed by the Board of Directors
January 29, 2015
Atlas Copco - Q4 results 2014
Earnings per share, SEK
Dividend and redemption per share, SEK
21
NEAR-TERM OUTLOOK
The overall demand for the Group is expected to increase somewhat.
January 29, 2015
Atlas Copco - Q4 results 2014
22
COMMITTED TO
SUSTAINABLE PRODUCTIVITY.
January 29, 2015
Atlas Copco - Q4 results 2014