COMMITTED TO SUSTAINABLE PRODUCTIVITY...Jan 28, 2016 · Atlas Copco - Q4 results 2015 17 Volume,...
Transcript of COMMITTED TO SUSTAINABLE PRODUCTIVITY...Jan 28, 2016 · Atlas Copco - Q4 results 2015 17 Volume,...
COMMITTED TO
SUSTAINABLE
PRODUCTIVITY
Q4 2015 results
January 28, 2016
ATLAS COPCO RECOGNIZED FOR SUSTAINABILITY
Recognized as one of the world’s most sustainable companies for the tenth time by the
prestigious annual Global 100 list
Ranked top sustainable machinery company
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Q4 IN BRIEF
Solid profitability and record cash flow in tough market conditions
Robust service business in all business areas
Lower order intake for equipment
Agreement to acquire Leybold Vacuum
Tax provision following European Commission’s decision on Belgium’s tax rulings
The Board of Directors proposes a dividend of SEK 6.30 (6.00) per share, paid in two
installments
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Q4 FIGURES IN SUMMARY
Orders received decreased 2% to MSEK 23 847, organic decline of 5%
Revenues increased 1% to MSEK 25 582, organic decline of 2%
Adjusted operating profit of MSEK 4 919 (4 886), margin at 19.2% (19.3)
– Items affecting comparability of MSEK -95 (-115)
– Reported operating profit of MSEK 4 824 (4 771), margin at 18.9% (18.8)
Adjusted profit for the period of MSEK 3 832 (3 335), excluding tax provision of MSEK 2 802
Adjusted basic earnings per share SEK 3.15 (2.74)
– Reported basic earnings per share, including tax provision SEK 0.85
Operating cash flow at MSEK 5 355 (4 876)
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2015 FIGURES IN SUMMARY
Orders received increased 7% to a record of MSEK 100 241 (93 873)
– Growth in service
– Tough market conditions for equipment
– Strong development for industrial tools and assembly solutions
Record revenues, operating profit and operating cash flow
– Revenues of MSEK 102 161 (93 721)
– Operating margin of 19.3% (18.2)
– Operating cash flow at MSEK 16 955 (13 916)
Adjusted basic earnings per share SEK 11.92 (10.01)
– Reported basic earnings per share, including tax provision of MSEK 2 802, SEK 9.62
The Board of Directors proposes a dividend of SEK 6.30 (6.00)
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ORDERS RECEIVED - LOCAL CURRENCY
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December 2015
100 -2 -4
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
25 -4 -6
7 -12 -12
30 +4 +2
10 -2 +4
25 -2 -7
3 -17 -28
ORDER GROWTH PER QUARTER
-20
-10
0
10
20
30
40
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
15
Q4
Organic growth, % (volume and price)
Organic growth
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ORDER GROWTH PER QUARTER
-20
-10
0
10
20
30
40
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
15
Q4
Growth, excl. currency, % (volume, price and structure)
Growth excl. currency
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SALES BRIDGE
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Orders Orders
MSEK received Revenues received Revenues
2014 24 375 25 360 93 873 93 721
Structural change, % +0 +0 +2 +2
Currency, % +3 +3 +9 +9
Price, % +0 +0 +0 +0
Volume, % -5 -2 -4 -2
Total, % -2 +1 +7 +9
2015 23 847 25 582 100 241 102 161
October - December January - December
ATLAS COPCO GROUP
Compressor Technique
Industrial Technique
Mining and Rock Excavation Technique
Construction Technique
Revenues by business area
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14%
26%
15%
45%
12 months until December 2015
COMPRESSOR TECHNIQUE
Growth in service
Lower order intake for compressors
Solid order intake for vacuum solutions
Agreement to acquire Leybold Vacuum and FIAC
Adjusted operating margin at 22.6% (22.2)
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
Q42015
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
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Industrial vacuum pump with
best-in-class pumping speeds
and low running costs
INDUSTRIAL TECHNIQUE
Strong demand from motor vehicle, aerospace
and electronics industries
Strong growth in service
Record revenues
Operating margin at 22.4% (22.6)
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
Q42015
Orders received, MSEK Revenues, MSEK Operating margin, %
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Advanced electric drilling unit for demanding
aerospace applications
MINING AND ROCK EXCAVATION TECHNIQUE
Growth in service and parts
Consumables volumes decreased somewhat
Continued weak demand for equipment
Operating margin at 17.7% (18.5), negatively
impacted by currency
0%
5%
10%
15%
20%
25%
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
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10 000
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
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Exploration drilling rig with automatic drilling and rod
handling, features that increase operator safety
and productivity
CONSTRUCTION TECHNIQUE
Lower order intake for equipment
Good development for service and specialty rental
Acquisition of Varisco, an Italian pump manufacturer
Operating margin at 11.3% (10.9)
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
Q42015
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
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A portable 100% oil-free compressor for specialty rental applications, equipped with an
engine that conform to the latest emission standards
GROUP TOTAL
MSEK 2015 2014 %
Orders received 23 847 24 375 -2%
Revenues 25 582 25 360 1%
Operating profit 4 824 4 771 1%
– as a percentage of revenues 18.9 18.8
Profit before tax 4 644 4 436 5%
– as a percentage of revenues 18.2 17.5
Income tax expense -3 614 -1 101 228%
Profit for the period 1 030 3 335 -69%
Basic earnings per share, SEK 0.85 2.74
Adjusted basic earnings per share, SEK 3.15 2.74 15%
Return on capital employed, % 27 24
October - December
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
Q42015
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
October – December 2015 vs. 2014
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25 360 25 58245 790
613
0
5 000
10 000
15 000
20 000
25 000
30 000
Q4 2014 One-time +acquisitions
Currency Volume, price,mix and other
Q4 2015
Revenues
4 771 4 82440235
5 217
0
1 000
2 000
3 000
4 000
5 000
6 000
Q4 2014 LTI (options) One-time +acquisitions
Currency Volume, price,mix and other
Q4 2015
Operating profit
Volume, price, One-time items Share based
MSEK Q4 2015 mix and other Currency Acquisitions LTI programs Q4 2014
Atlas Copco Group
Revenues 25 582 -613 790 45 25 360
Operating profit 4 824 -217 235 40 -5 4 771
% 18.9% 35.4% 18.8%
PROFIT BRIDGEOctober – December 2015 vs. 2014
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PROFIT BRIDGE – BY BUSINESS AREAOctober – December 2015 vs. 2014
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Volume, price, One-time items
MSEK Q4 2015 mix and other Currency Acquisitions Q4 2014
Compressor Technique
Revenues 11 851 -434 585 15 11 685
Operating profit 2 620 -146 220 75 2 471
% 22.1% 33.6% 21.1%
Industrial Technique
Revenues 3 819 141 195 15 3 468
Operating profit 854 61 15 -5 783
% 22.4% 43.3% 22.6%
Mining and Rock Excavation Technique
Revenues 6 558 -19 -45 0 6 622
Operating profit 1 163 -32 -30 0 1 225
% 17.7% 168.4% 18.5%
Construction Technique
Revenues 3 491 -204 55 15 3 625
Operating profit 394 -36 30 5 395
% 11.3% 17.6% 10.9%
MSEK
Intangible assets 33 520 33% 33 197 32%
Rental equipment 3 076 3% 3 177 3%
Other property, plant and equipment 8 947 9% 9 433 9%
Other non-current assets 4 128 4% 3 530 3%
Inventories 16 906 16% 18 364 17%
Receivables 25 985 25% 26 015 25%
Current financial assets 1 576 2% 2 150 2%
Cash and cash equivalents 8 861 9% 9 404 9%
Assets classified as held for sale 11 0% 11 0%
TOTAL ASSETS 103 010 105 281
Total equity 46 750 45% 50 753 48%
Interest-bearing liabilities 25 214 24% 26 997 26%
Non-interest-bearing liabilities 31 046 30% 27 531 26%
TOTAL EQUITY AND LIABILITIES 103 010 105 281
Dec. 31, 2015 Dec. 31, 2014
BALANCE SHEET
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MSEK 2015 2014 2015 2014
Operating cash surplus 5 914 5 707 23 547 20 426
of which depreciation added back 1 105 1 009 4 347 3 709
Net financial items -855 102 -2 037 -849
Taxes paid -801 -674 -4 238 -3 828
Pension funding 12 -71 78 -115
Change in working capital 1 381 1 179 1 599 2 056
Increase in rental equipment, net -221 -224 -837 -1 303
Cash flows from operating activities 5 430 6 019 18 112 16 387
Investments of property, plant & eq., net -424 -503 -1 525 -1 462
Other investments, net -272 -433 -954 -1 056
Cash flow from investments -696 -936 -2 479 -2 518
Adjustment, currency hedges of loans 621 -207 1 322 47
Operating cash flow 5 355 4 876 16 955 13 916
Company acquisitions/ divestments -65 -35 -1 794 -8 415
October - December January - December
CASH FLOW
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EARNINGS AND DIVIDENDS
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*Dividend for 2015 as proposed by the Board of Directors
2.383.00 3.00 3.00
4.00
5.005.50 5.50
6.00 6.30
2.30
22.38
9.00
12.00 11.92
12.24
6.09
8.33
5.14
8.16
10.6811.47
9.95 10.019.62
0
5
10
15
20
25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Ordinary dividend per share, SEK Earnings per share, SEK Tax provision, SEK Dividend and redemption per share, SEK
DIVIDEND OF SEK 6.30* – PAYMENT IN TWO INSTALLMENTS
Proposed
preliminary dates
for dividend
Amount Ex-dividend date Record date Payment
First dividend
paymentSEK 3.15* April 27, 2016 April 28, 2016 May 3, 2016
Second dividend
paymentSEK 3.15* October 28, 2016 October 31, 2016 November 3, 2016
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*Dividend for 2015 as proposed by the Board of Directors
NEAR-TERM OUTLOOK
The overall demand for the Group is expected to remain at current level.
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COMMITTED TO
SUSTAINABLE PRODUCTIVITY.
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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.”
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