Seventh Meeting February 26 2007 Intense Attribution Period (IAP) 15 November 2006 - 15 April 2007.
April 26, 2007, Atlas Copco Group Q1 Results April 26, 2007.
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Transcript of April 26, 2007, Atlas Copco Group Q1 Results April 26, 2007.
2April 26, 2007, www.atlascopco.com
Contents
Q1 Business Highlights
Market Development
Business Areas
Financials
Outlook
3April 26, 2007, www.atlascopco.com
Q1 - Highlights
Accelerated growth– Organic order growth 24%
– Strong performance both in equipment and aftermarket
– 20th consecutive quarter of organic growth
Strengthened market position– Investments in market organization
– Investments in manufacturing capacity and efficiency
– Strategic acquisitions
4April 26, 2007, www.atlascopco.com
Q1 - Figures in summary
Revenues up 12% to MSEK 13 390– 17% organic growth
Operating profit up 21% to MSEK 2 541– Record operating margin of 19.0% (17.5)
Profit before tax at MSEK 2 477 (2 032)– Profit margin of 18.5% (17.0)
Profit from continuing operations up 21% to MSEK 1 773– Earnings per share continuing operations SEK 2.89
Operating cash flow, continuing operations, MSEK 845 (711)
5April 26, 2007, www.atlascopco.com
Contents
Q1 Business Highlights
Market Development
Business Areas
Financials
Outlook
6April 26, 2007, www.atlascopco.com
Orders received - Local currencyGroup total +27% YTD(Structural change +3% YTD)
March 2007A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %
39 +25
10 +57
5 +39
18 +2821 +18
7 +59
A B
7April 26, 2007, www.atlascopco.com
Q1 - The Americas
Continued growth in North America– Favorable investment activity in most
manufacturing and process industries
– Solid demand for mining and construction equipment
Improved demand from all customer segments in South America– Strong sales increases, particularly in
Brazil and Chile7 +59
21 +18
March 2007A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %A B
8April 26, 2007, www.atlascopco.com
Q1 - Europe and Africa/Middle East
Robust demand fuelled growth in Europe– Continued strong demand from manufacturing and
process industries, except from the motor vehicle industry
– Very strong demand from the construction and mining industries
– Strong growth, primarily in Eastern Europe, Great Britain and the Nordic countries
Very positive in Africa / Middle East region– Sales of mining equipment to Southern Africa
increased significantly
March 2007A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %A B
39 +25
10 +57
9April 26, 2007, www.atlascopco.com
Q1 - Asia and Australia
Sustained growth in Asia– Very good demand for industrial
equipment in all major markets
– Strong development for construction and mining equipment
Strong demand from mining, manufacturing and construction in Australia
March 2007A = Portion of sales, last 12 months, %
B = Year-to-date vs. prev. year, %A B
5 +39
18 +28
10April 26, 2007, www.atlascopco.com
Volume Growth per Quarter
Change in orders received in % vs. same Quarter previous year
Atlas Copco Group, continuing operations
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100
Q2
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300
Q4
01 Q
101
Q2
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301
Q4
02 Q
102
Q2
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302
Q4
03 Q
103
Q2
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303
Q4
04 Q
104
Q2
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304
Q4
05 Q
105
Q2
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305
Q4
06 Q
106
Q2
06 Q
306
Q4
07 Q
107
Q2
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307
Q4
11April 26, 2007, www.atlascopco.com
Atlas Copco Group – Sales Bridge
Orders RevenuesMSEK Received2006 13 699 11 948Structural change, % +3 +3Currency, % -9 -8Price, % +3 +2Volume, % +21 +15Total, % +18 +122007 16 120 13 390
January - March
12April 26, 2007, www.atlascopco.com
Contents
Q1 Business Highlights
Market Development
Business Areas
Financials
Outlook
13April 26, 2007, www.atlascopco.com
Atlas Copco GroupOperating Profit and Return On Capital Employed (ROCE) by Business Area
Revenues Operating Operating ROCEMSEK profit margin12 month values, period ending Mar. 2007 Mar. 2007 Mar. 2007 Mar. 2007Compressor Technique 26 493 5 568 21.0% 69%Construction and Mining Technique 19 439 3 219 16.6% 37%Industrial Technique 6 355 1 373 21.6% 61%Eliminations/Common Group Functions -333 -512Atlas Copco Group 51 954 9 648 18.6% 34%**including discontinued operations
14April 26, 2007, www.atlascopco.com
Compressor Technique
Strong growth continued– Increased market presence and penetration
support equipment and aftermarket growth
– Organic order growth 19%
– Strong in all regions
Operating margin at 21.2%
Strategic acquisitions– Acquisition of Greenfield strengthens presence
in growing CNG segment
– ABAC acquisition finalized on April 2
15April 26, 2007, www.atlascopco.com
Compressor Technique
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Revenue volume growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
Quarterly operating margins include Prime Energy from Q1 2006.
16April 26, 2007, www.atlascopco.com
Very strong demand from mining, both for equipment and aftermarket
Organic order growth 33%– 20th consecutive quarter
with volume growth
Operating profit up 30% – Record margin at 17.9%
Acquisition of Dynapac
Construction and Mining Technique
17April 26, 2007, www.atlascopco.com
Dynapac
A leading supplier of compaction and paving equipment – Sales in over 115 countries, 8 production facilities in 6 countries.
– 2 100 employees with expertise in R&D, production, marketing, sales, services and customer finance
– Revenues approx. MEUR 505, operating margin 11.3% in 2006
– Founded in 1934, headquartered in Sweden
– Purchase price approximately MEUR 700
– Acquisition expected to close in Q2
Expanding presence in the road development market
18April 26, 2007, www.atlascopco.com
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Revenue volume growth: Change vs. same quarter previous year, %
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Construction and Mining Technique
19April 26, 2007, www.atlascopco.com
Industrial Technique
Resumed growth – 7% organic order growth– Increased sales and marketing activities resulted in strong
growth within general industry
– Relatively weak demand from the motor vehicle industry in North America and Western Europe
– Healthy growth for the vehicle service business
All-time high operating profit and margin
New techno center opened
Strategic acquisition of Rodcraft
20April 26, 2007, www.atlascopco.com
Industrial Technique
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Revenue volume growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
21April 26, 2007, www.atlascopco.com
Contents
Q1 Business Highlights
Market Development
Business Areas
Financials
Outlook
22April 26, 2007, www.atlascopco.com
Group Total
MSEK 2007 2006 %Orders received 16 120 13 699 +18
Revenues 13 390 11 948 +12
Operating profit 2 541 2 096 +21
- as a percentage of revenues 19.0 17.5
Profit before tax 2 477 2 032 +22
- as a percentage of revenues 18.5 17.0
Profit from continuing operations 1 773 1 463 +21
Profit from discontinued operations, net of tax 53 323
Profit for the period 1 826 1 786
January - March
23April 26, 2007, www.atlascopco.com
Balance Sheet
MSEK March 31, 2007 Dec 31, 2006 March 31, 2006
Intangible assets 4 722 9% 4 299 8% 3 562 6%
Rental equipment 2 010 4% 1 979 4% 1 991 3%
Other property, plant and equipment 4 000 7% 3 777 7% 3 571 6%
Other fixed assets 3 554 7% 3 161 6% 1 698 3%
Inventories 9 783 18% 8 487 15% 7 913 14%
Receivables 13 523 25% 12 401 22% 12 178 21%
Current financial assets 944 2% 1 016 2% 577 1%
Cash and cash equivalents 16 139 30% 20 135 36% 3 858 7%
Assets classified as held for sale 21 937 38%
TOTAL ASSETS 54 675 55 255 57 285
Total equity 35 730 65% 32 708 59% 27 355 48%
Interest-bearing liabilities 4 564 8% 8 787 16% 10 149 18%
Non-interest-bearing liabilities 14 381 26% 13 760 25% 13 392 23%
Liabilities associated with assets classified as held for sale 6 389 11%
TOTAL EQUITY AND LIABILITIES 54 675 55 255 57 285
24April 26, 2007, www.atlascopco.com
Cash Flow
MSEK 2007 2006*
Operating cash surplus after tax 2 018 1 916 of which depreciation added back 414 389Change in working capital -506 -529 Cash flows from operating activities 1 512 1 387Investments in tangible fixed assets -528 -498Sale of tangible fixed assets 172 145Other investments, net -311 -323Cash flow from investments -667 -676 Operating cash flow 845 711Company acquisitions/ divestments -219 -268
*Restated, continuing operations
January - March
Continuing operations
25April 26, 2007, www.atlascopco.com
Contents
Q1 Business Highlights
Market Development
Business Areas
Financials
Outlook
26April 26, 2007, www.atlascopco.com
Near-term Outlook
The demand for Atlas Copco’s products and services, from most customer segments such as mining, construction, and the manufacturing and process industries, is expected to remain at the current high level.
28April 26, 2007, www.atlascopco.com
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 effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.”