Atlas Copco Group
description
Transcript of Atlas Copco Group
1October 22, 2009, www.atlascopco.com
Atlas Copco Group
Q3 Results
October 22, 2009
2October 22, 2009, www.atlascopco.com
Contents
Q3 Business Highlights
Market Development
Business Areas
Financials
Outlook
3October 22, 2009, www.atlascopco.com
Q3 - Highlights
Stable demand– Still very low investment level
– Improved demand in some emerging market
– Increased activity within mining but still low equipment order level
Sales of aftermarket products and services remained at good level
Healthy profitability– Annual cost savings in excess of MSEK 2 000 now achieved
– Favorable sales mix supported margin
Operating cash flow very strong
4October 22, 2009, www.atlascopco.com
Q3 - Figures in summary
Organic order intake down 30%
Revenues of MSEK 15 088; 25% organic decline
Operating profit at MSEK 2 402 (3 640)– An operating margin of 15.9% (19.7)
– MSEK 60 in positive currency effect compared to last year
Profit before tax at MSEK 2 210 (3 224)
Earnings per share SEK 1.42 (1.99)
Operating cash flow MSEK 4 275 (1 054)
5October 22, 2009, www.atlascopco.com
Contents
Q3 Business Highlights
Market Development
Business Areas
Financials
Outlook
6October 22, 2009, www.atlascopco.com
Orders received - Local currency
September 2009 A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
16 -44 -36
36 -36 -34
13 -28 -23
21 -24 -16
5 -28 -389 -24 -10
A B CA = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
C = Last 3 months vs. prev. year, %
Group total -35% YTD (-34 excl. cancellations), -30% last 3 months(Structural change 0% YTD, 0% last 3 months)
7October 22, 2009, www.atlascopco.com
Q3 - The Americas
Continued weak demand in North America– Low order intake for equipment in
construction, mining and most industrial segments
– Some good orders for oil and gas and energy recovery
Situation improved in South America– Recovery noted in both mining and
construction segment
September 2009
A B C
9 -24 -10
16 -44 -36
A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
C = Last 3 months vs. prev. year, %
8October 22, 2009, www.atlascopco.com
Q3 - Europe and Africa/Middle East
Demand remained low in Europe– Better development in Western than in
Eastern Europe
– Russia remained very weak
Mixed development in Africa / Middle East– Good demand within oil and gas sector in
Northern Africa and Middle East but poor development in the south
September 2009
A B C
36 -36 -34
13 -28 -23
A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
C = Last 3 months vs. prev. year, %
9October 22, 2009, www.atlascopco.com
Q3 - Asia and Australia
Positive development in Asia– Sequential improvement in China and
India in most customer segments
– Good mining demand in South East Asia
– Weak demand in Japan
Weak quarter in Australia
September 2009 A = Portion of sales, Year-to-date, %
B = Year-to-date vs. prev. year, %
C = Last 3 months vs. prev. year, %A B C
21 -24 -16
5 -28 -38
10October 22, 2009, www.atlascopco.com
Organic* Growth per Quarter
Change in orders received in % vs. same quarter previous year
Atlas Copco Group, continuing operations
-40-35-30-25-20-15-10
-505
1015202530
00 Q
100
Q2
00 Q
300
Q4
01 Q
101
Q2
01 Q
301
Q4
02 Q
102
Q2
02 Q
302
Q4
03 Q
103
Q2
03 Q
303
Q4
04 Q
104
Q2
04 Q
304
Q4
05 Q
105
Q2
05 Q
305
Q4
06 Q
106
Q2
06 Q
306
Q4
07 Q
107
Q2
07 Q
307
Q4
08 Q
108
Q2
08 Q
308
Q4
09 Q
109
Q2
09 Q
309
Q4
*Volume and price
Order cancellations
11October 22, 2009, www.atlascopco.com
Atlas Copco Group – Sales Bridge
July - September January - SeptemberOrders Revenues Orders Revenues
MSEK Received Received
2008 18 842 18 440 58 135 54 446Structural change, % 0 +1 0 +1Currency, % +6 +6 +9 +10Price, % +1 +1 +1 +1Cancellations, % - - -1 -Volume, % -31 -26 -35 -24Total, % -24 -18 -26 -122009 14 309 15 088 43 175 47 820
12October 22, 2009, www.atlascopco.com
Contents
Q3 Business Highlights
Market Development
Business Areas
Financials
Outlook
13October 22, 2009, 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 Sep. 2009 Sep. 2009 Sep. 2009 Sep. 2009
Compressor Technique 34 246 6 174 18.0% 45%Construction and Mining Technique 27 521 3 846 14.0% 18%Industrial Technique 5 938 407 6.9% 13%Eliminations/Common Group Functions -154 -499Atlas Copco Group 67 551 9 928 14.7% 21%
14October 22, 2009, www.atlascopco.com
Compressor Technique
14October 22, 2009, www.atlascopco.com
Overall demand stable on low level– 27% organic order decline
– Good orders from oil and gas segment
– Aftermarket continued to hold up well
Operating margin at 18.6% – Improvement from previous quarters thanks
to lower costs and favorable sales mix
Acquisition of Czech service company
15October 22, 2009, www.atlascopco.com
Compressor Technique
-25
-20
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Organic* revenue growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
Quarterly operating margins include Prime Energy from Q1 2006.*Volume and price
16October 22, 2009, www.atlascopco.com
Solid aftermarket but low equipment demand – Organic order decline of 34%
– Improved activity level within mining
Operating profit at MSEK 823, a margin of 13.8%– Under-absorption and currency had a negative
impact
– Favorable sales mix and good cost development
Construction and Mining Technique
17October 22, 2009, www.atlascopco.com
-35
-30
-25
-20
-15
-10
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Q2
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Q2
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Organic* revenue growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
Construction and Mining Technique
*Volume and price
18October 22, 2009, www.atlascopco.com
Industrial Technique
Continued tough market conditions– Weak demand, both from the motor vehicle industry and the
general industry, organic order intake down 38%
– Positive service development in emerging markets
Operating profit margin at 6.7%– Still heavily affected by under-absorption
– Gradual improvement from efficiency initiatives
19October 22, 2009, www.atlascopco.com
Industrial Technique
-45
-40
-35
-30
-25
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-15
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03 Q
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03 Q
3
04 Q
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04 Q
3
05 Q
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05 Q
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06 Q
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3
07 Q
1
07 Q
3
08 Q
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08 Q
3
09 Q
1
09 Q
3
Organic* revenue growth: Change vs. same quarter previous year, %
Quarterly operating margin, %
*Volume and price
20October 22, 2009, www.atlascopco.com
Contents
Q3 Business Highlights
Market Development
Business Areas
Financials
Outlook
21October 22, 2009, www.atlascopco.com
Group Total
July - September January - SeptemberMSEK 2009 2008 % 2009 2008 %
Orders received 14 309 18 842 -24 43 175 58 135 -26
Revenues 15 088 18 440 -18 47 820 54 446 -12
Operating profit 2 402 3 640 -34 6 640 10 518 -37
- as a percentage of revenues 15.9 19.7 13.9 19.3
Profit before tax 2 210 3 224 -31 5 947 9 604 -38
- as a percentage of revenues 14.6 17.5 12.4 17.6
Profit from continuing operations 1 730 2 432 -29 4 576 7 087 -35
Profit from discontinued operations, net of tax - - - 184
Profit for the period 1 730 2 432 4 576 7 271
Basic earnings per share, SEK 1.42 1.99 3.75 5.94
- of which continuing operations, SEK 1.42 1.99 3.75 5.79
Return on capital employed, % 21 341)
1) Excluding non-recurring w rite dow n of RSC notes.
22October 22, 2009, www.atlascopco.com
Profit BridgeJuly – September, 2009 vs 2008
Organic Growth One-time items
MSEK Price/Volume Acq./Div.
Atlas Copco Group
Revenues 15 088 -4 542 1 140 50 18 440
EBIT 2 402 -1 308 60 10 3 640
% 15.9% 29% - - 19.7%
Q3 2009 Currency Q3 2008
23October 22, 2009, www.atlascopco.com
Profit Bridge – by Business AreaJuly– September, 2009 vs 2008
Q3 2009 Organic Growth Currency One-time items Q3 2008
MSEK Price/Volume Acq./Div.
Compressor Technique
Revenues 7 799 -1 864 610 25 9 028
EBIT 1 451 -525 50 5 1 921
% 18.6% 28% - - 21.3%
Construction & Mining Technique
Revenues 5 976 -2 206 420 20 7 742
EBIT 823 -517 -120 5 1 455
% 13.8% 23% - - 18.8%
Industrial Technique
Revenues 1 243 -655 105 5 1 788
EBIT 83 -255 0 1 337
% 6.7% 39% - - 18.8%
24October 22, 2009, www.atlascopco.com
MSEK Sept 30, 2009 Dec 31, 2008 Sept 30, 2008
Intangible assets 12 593 19% 12 916 17% 12 177 19%
Rental equipment 2 048 3% 2 282 3% 1 992 3%
Other property, plant and equipment 6 046 9% 6 353 8% 5 698 9%
Other fixed assets 6 060 9% 7 977 11% 4 797 7%
Inventories 12 623 19% 17 106 23% 16 371 25%
Receivables 15 883 24% 21 603 29% 19 770 30%
Current financial assets 1 598 2% 1 659 2% 1 531 2%
Cash and cash equivalents 10 005 15% 5 455 7% 3 403 5%
Assets classified as held for sale 35 0% 43 0% 39 0%
TOTAL ASSETS 66 891 75 394 65 778
Total equity 23 404 35% 23 768 32% 18 759 29%
Interest-bearing liabilities 27 498 41% 30 404 40% 27 694 42%
Non-interest-bearing liabilities 15 989 24% 21 222 28% 19 325 29%
TOTAL EQUITY AND LIABILITIES 66 891 75 394 65 778
Balance Sheet
25October 22, 2009, www.atlascopco.com
0,90,6
0,8 0,8
-1,1 -1,1
1,91,6
1,41,2 1,3
1,5
1,21,4 1,4 1,4
-1,5
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
2005 2006Q1
2006Q2
2006Q3
2006 2007Q1
2007Q2
2007Q3
2007 2008Q1
2008Q2
2008Q3
2008 2009Q1
2009Q2
2009Q3
Capital Structure Net Debt*/EBITDA
*Net Debt adjusted for the fair value of interest rate swaps
26October 22, 2009, www.atlascopco.com
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Public Bonds Bank Loans
Atlas Copco AB’s Loan Maturity Profile
27October 22, 2009, www.atlascopco.com
Cash Flow
July - September January - SeptemberMSEK 2009 2008 2009 2008
Operating cash surplus after tax 2 360 2 936 5 383 8 557 of which depreciation added back 661 524 1 840 1 483Change in working capital 2 032 -772 5 118 -3 103 Cash flows from operating activities 4 392 2 164 10 501 5 454Investments in tangible fixed assets -387 -708 -1 332 -2 008Sale of tangible fixed assets 164 126 471 370Other investments, net 106 -528 -22 -1 466Cash flow from investments -117 -1 110 -883 -3 104 Operating cash flow 4 275 1 054 9 618 2 350Company acquisitions/ divestments -10 -45 -165 -223
28October 22, 2009, www.atlascopco.com
Contents
Q3 Business Highlights
Market Development
Business Areas
Financials
Outlook
29October 22, 2009, www.atlascopco.com
Near-term Outlook
The overall demand is expected to stay around the current level.
The demand in some emerging markets, including China and India, is expected to gradually improve.
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31October 22, 2009, 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 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.”