committed to sustainable productivity€¦ · generators with quick payback for the customer....

COMMITTED TO

SUSTAINABLE

PRODUCTIVITY

Q3 2015 results

October 20, 2015

Q3 IN BRIEF

Mixed demand development

– Growth in service

– Low order volumes for equipment

Stable industrial business

Weak mining and oil & gas

Order growth in Europe – declines in China, Brazil and the Middle East

Record profit and strong operating cash flow

October 20, 2015

Atlas Copco - Q3 results 2015

2

INNOVATION HIGHLIGHTS

iXM dry pump

For semiconductor manufacturing

Patented technology and design

Increased energy efficiency and longer lifetime

GHS VSD+

For general manufacturing

Energy savings of 50% on average

Vacuum solutions

3

October 20, 2015


Q3 FIGURES IN SUMMARY

Orders received increased 3% to MSEK 24 149, organic decline of 5%

Revenues increased 9% to MSEK 25 723, unchanged organically

Record operating profit of MSEK 5 313 (4 145), margin at 20.7% (17.6)

Adjusted operating profit was MSEK 5 239 (4 604), margin at 20.4% (19.5)

– Items affecting comparability of MSEK +74 (-459)

Profit before tax at MSEK 5 042 (3 879)

Basic earnings per share SEK 3.12 (2.37)

Operating cash flow at MSEK 4 621 (4 075)

October 20, 2015


4

ORDERS RECEIVED - LOCAL CURRENCY

October 20, 2015


5

September 2015

100 -1 -3

A = Share of orders received, year-to-date, %

B = Year-to-date vs. previous year, %

C = Last 3 months vs. previous year, %

A B C

24 -3 -7

8 -13 -17

30 +5 +7

10 -3 -18

25 -1 +2

3 -13 -20

ORGANIC* ORDER GROWTH PER QUARTERAtlas Copco Group, continuing operations

October 20, 2015


6

* Volume and price

-40

-30

-20

-10

0

10

20

30

40

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

13

Q3

13

Q4

14

Q1

14

Q2

14

Q3

14

Q4

15

Q1

15

Q2

15

Q3

Organic growth, % Order cancellations, %

ATLAS COPCO GROUP – SALES BRIDGE

October 20, 2015


7

Orders Orders

MSEK received Revenues received Revenues

2014 23 395 23 590 69 498 68 361

Structural change, % +1 +1 +2 +2

Currency, % +7 +8 +11 +12

Price, % +0 +1 +0 +0

Volume, % -5 -1 -3 -2

Total, % +3 +9 +10 +12

2015 24 149 25 723 76 394 76 579

July - September January - September

ATLAS COPCO GROUP

Compressor Technique

Industrial Technique

Mining and Rock Excavation Technique

Construction Technique

Revenues by business area

October 20, 2015


8

14%

26%

15%

45%

12 months until September 2015

COMPRESSOR TECHNIQUE

Growth in service

Weak order intake for equipment

– Positive in Europe, negative in China and Brazil

– United States affected by weak oil & gas and low

vacuum orders

– Low orders for gas and process compressors

Record revenues and operating profit

– Operating margin at 22.8% (22.1)

0%

5%

10%

15%

20%

25%

30%

0

2 500

5 000

7 500

10 000

12 500

15 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

October 20, 2015


9

Extended and upgraded range of nitrogen

generators with quick payback for the customer

INDUSTRIAL TECHNIQUE

Increased order intake

– Strong demand from motor vehicle industry,

aerospace and electronics

Growth in service

Acquisition of process control systems specialist

Record operating profit

– Operating margin at 23.6% (22.5)

0%

5%

10%

15%

20%

25%

0

1 000

2 000

3 000

4 000

5 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Orders received, MSEK Revenues, MSEK Operating margin, %

October 20, 2015


10

High torque electric assembly tool for high productivity

MINING AND ROCK EXCAVATION TECHNIQUE

Growth in service and parts

Lower order intake for equipment

– Cancellations of MSEK 300, mainly in Australia

– Further efficiency measures

Operating margin at 20.0% (18.5 adjusted)

0%

5%

10%

15%

20%

25%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015



October 20, 2015


11

Reliable low-pressure rock drill for surface

applications

CONSTRUCTION TECHNIQUE

Positive development for specialty rental and

stable service business

– Acquisition of specialty dryer rental business

Lower order intake for equipment

– Significant decrease in Brazil and China

– Growth in Europe, India and the United States

Operating margin at 14.0% (11.4)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015



October 20, 2015


12

High pressure portable compressor with improved

fuel efficiency

GROUP TOTALJuly – September 2015 vs. 2014

October 20, 2015


13

MSEK 2015 2014 %

Orders received 24 149 23 395 3%

Revenues 25 723 23 590 9%

Operating profit 5 313 4 145 28%

– as a percentage of revenues 20.7 17.6

Profit before tax 5 042 3 879 30%

– as a percentage of revenues 19.6 16.4

Profit for the period 3 806 2 878 32%

Basic earnings per share, SEK 3.12 2.37

Return on capital employed, % 27 25

July - September

0%

5%

10%

15%

20%

25%

30%

0

5 000

10 000

15 000

20 000

25 000

30 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015



23 59025 723

3201 945

132

0

5 000

10 000

15 000

20 000

25 000

30 000

Q3 2014 One-time +acquisitions

Currency Volume, price,mix and other

Q3 2015

Revenues

4 145

5 313

133

450

670

85

0

1 000

2 000

3 000

4 000

5 000

6 000

Q3 2014 LTI (options) One-time +acquisitions

Currency Volume, price,mix and other

Q3 2015

Operating profit

PROFIT BRIDGEJuly – September 2015 vs. 2014

October 20, 2015


14

Volume, price, One-time items Share based

MSEK Q3 2015 mix and other Currency Acquisitions LTI programs Q3 2014

Atlas Copco Group

Revenues 25 723 -132 1 945 320 23 590

Operating profit 5 313 -85 670 450 133 4 145

% 20.7% 64.4% 17.6%

Volume, price, One-time items

MSEK Q3 2015 mix and other Currency Acquisitions Q3 2014

Compressor Technique

Revenues 11 875 7 1 115 35 10 718

Operating profit 2 709 -30 310 60 2 369

% 22.8% na 22.1%

Industrial Technique

Revenues 3 668 291 275 275 2 827

Operating profit 866 75 110 45 636

% 23.6% 25.8% 22.5%

Mining and Rock Excavation Technique

Revenues 6 481 -248 280 0 6 449

Operating profit 1 296 -100 200 340 856

% 20.0% 40.3% 13.3%

Construction Technique

Revenues 3 855 -127 275 15 3 692

Operating profit 538 26 85 5 422

% 14.0% na 11.4%

PROFIT BRIDGE – BY BUSINESS AREAJuly – September 2015 vs. 2014

October 20, 2015


15

BALANCE SHEET

October 20, 2015


16

MSEK

Intangible assets 33 789 32% 33 197 32% 31 425 32%

Rental equipment 3 077 3% 3 177 3% 3 039 3%

Other property, plant and equipment 9 069 9% 9 433 9% 8 998 9%

Other non-current assets 3 968 4% 3 530 3% 3 297 3%

Inventories 18 261 17% 18 364 17% 18 561 19%

Receivables 26 817 26% 26 015 25% 25 360 26%

Current financial assets 1 674 2% 2 150 2% 2 025 2%

Cash and cash equivalents 8 279 8% 9 404 9% 6 245 6%

Assets classified as held for sale 41 0% 11 0% 12 0%

TOTAL ASSETS 104 975 105 281 98 962

Total equity 46 691 44% 50 753 48% 44 677 45%

Interest-bearing liabilities 25 934 25% 26 997 26% 27 835 28%

Non-interest-bearing liabilities 32 350 31% 27 531 26% 26 450 27%

TOTAL EQUITY AND LIABILITIES 104 975 105 281 98 962

Sep. 30, 2015 Dec. 31, 2014 Sep. 30, 2014

MSEK 2015 2014

Operating cash surplus 6 168 5 205

of which depreciation added back 1 148 1 033

Net financial items 130 -288

Taxes paid -1 266 -1 136

Pension funding 7 3

Change in working capital 558 986

Increase in rental equipment, net -181 -408

Cash flows from operating activities 5 416 4 362

Investments of property, plant & eq., net -331 -297

Other investments, net -253 -150

Cash flow from investments -584 -447

Adjustment, currency hedges of loans -211 160

Operating cash flow 4 621 4 075

Company acquisitions/ divestments -115 -1 081

July - September

CASH FLOW

October 20, 2015


17

CAPITAL MARKETS DAY 2015

Stockholm, Sweden

November 17, 2015

www.atlascopco.com/CMD2015

October 20, 2015


18

http://www.atlascopco.com/CMD2015

NEAR-TERM OUTLOOK

The overall demand for the Group is expected to remain at current level.

October 20, 2015


19

COMMITTED TO

SUSTAINABLE PRODUCTIVITY.

October 20, 2015


20

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.”

October 20, 2015


22

committed to sustainable productivity€¦ · generators with quick payback for the customer....

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