committed to sustainable productivity - zonebourse.com fileq2 in brief growth in service increased...

COMMITTED TO

SUSTAINABLE

PRODUCTIVITY

Q2 2015 results

July 16, 2015

Q2 IN BRIEF

Growth in service

Increased order intake in Europe – decreased in Asia

Order volumes for equipment better than in Q1 2015

Record orders received, revenues and operating profit

– Strong impact from currency

Solid operating cash flow

July 16, 2015

Atlas Copco - Q2 results 2015

2

INNOVATION HIGHLIGHT

Significant sales increase

Ergonomic and user-friendly design

High impact force and speed give outstanding

compaction efficiency

Durable and service friendly

LT6005 / LT5005 compaction tool

Q2 FIGURES IN SUMMARY

Orders received increased 14% to MSEK 26 775, flat organically

Revenues increased to MSEK 26 111, organic decline of 3%

Adjusted operating profit was MSEK 5 162 (4 382), margin at 19.8% (18.8)

– Reported operating profit was MSEK 5 072 (4 339), margin at 19.4% (18.6)

– Change in provision for long-term incentive program MSEK +70 (-43)

– Restructuring costs of MSEK 160 (0)

Profit before tax at MSEK 4 850 (4 174)

Basic earnings per share SEK 3.00 (2.64)

Operating cash flow at MSEK 3 481 (3 102)

July 16, 2015


4

ORDERS RECEIVED - LOCAL CURRENCY

July 16, 2015


5

June 2015

100 0 +2

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 -1 +2

7 -10 -9

30 +4 +10

10 +5 -1

25 -2 -2

4 -10 -10

ORGANIC* ORDER GROWTH PER QUARTERAtlas Copco Group, continuing operations

July 16, 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

Organic growth, % Order cancellations, %

Orders

MSEK received Revenues

2014 23 450 23 348

Structural change, % +2 +2

Currency, % +12 +13

Price, % +1 +0

Volume, % -1 -3

Total, % +14 +12

2015 26 775 26 111

April - June

ATLAS COPCO GROUP – SALES BRIDGE

July 16, 2015


7

ATLAS COPCO GROUP

Compressor Technique

Industrial Technique

Mining and Rock Excavation

Technique

Construction Technique

Revenues by business area

July 16, 2015


8

13%

27%

15%

45%

12 months until June 2015

COMPRESSOR TECHNIQUE

Record order intake, supported by currency

– Growth in service

– Stable demand for small and medium-sized

compressors, low for large

– Increased order intake for vacuum solutions

Record operating profit

– Operating margin at 22.7% (21.4)

July 16, 2015


9

Oil-injected screw compressors with up to 5%

improved performance

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

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

INDUSTRIAL TECHNIQUE

Increased order intake

– Strong demand from motor vehicle industry and

aerospace, weak from off-road

– Growth in service

Record revenues and operating profit

– Operating margin at 23.4% (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

Orders received, MSEK Revenues, MSEK Operating margin, %

July 16, 2015


10

Versatile bolt tensioning tools

MINING AND ROCK EXCAVATION TECHNIQUE

Order intake for equipment higher than Q1 2015

Strong service business

Further efficiency measures

– Restructuring costs of MSEK 65

Adjusted operating margin at 19.3% (18.1)

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



July 16, 2015


11

A surface drill rig for construction applications and small quarries with

low emissions

CONSTRUCTION TECHNIQUE

Decreased order intake

– Weak portable compressors and road construction

– Growth in Europe, decrease in all other regions

Restructuring costs of MSEK 95

– Adjusted operating margin 13.0% (13.4)

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



July 16, 2015


12

An intelligent monitoring system for road construction equipment saves time and

cost for the customers

MSEK 2015 2014 %

Orders received 26 775 23 450 14%

Revenues 26 111 23 348 12%

Operating profit 5 072 4 339 17%

– as a percentage of revenues 19.4 18.6

Profit before tax 4 850 4 174 16%

– as a percentage of revenues 18.6 17.9

Profit for the period 3 651 3 207 14%

Basic earnings per share, SEK 3.00 2.64

Return on capital employed, % 25 25

April - June

GROUP TOTALApril – June 2015 vs. 2014

July 16, 2015


13

Volume, price, One-time items Share based

MSEK Q2 2015 mix and other Currency Acquisitions LTI programs Q2 2014

Atlas Copco Group

Revenues 26 111 -667 2 900 530 23 348

EBIT 5 072 -255 945 -70 113 4 339

% 19.4% 38.2% 18.6%

PROFIT BRIDGEApril – June 2015 vs. 2014

July 16, 2015


14

Volume, price, One-time items

MSEK Q2 2015 mix and other Currency Acquisitions Q2 2014

Compressor Technique

Revenues 11 462 -361 1 395 75 10 353

EBIT 2 603 -26 405 5 2 219

% 22.7% 7.2% 21.4%

Industrial Technique

Revenues 3 697 242 350 455 2 650

EBIT 865 70 110 90 595

% 23.4% 28.9% 22.5%

Mining and Rock Excavation Technique

Revenues 6 870 -216 690 0 6 396

EBIT 1 258 -187 355 -65 1 155

% 18.3% 86.6% 18.1%

Construction Technique

Revenues 4 256 -272 460 0 4 068

EBIT 457 -93 100 -95 545

% 10.7% 34.2% 13.4%

PROFIT BRIDGE – BY BUSINESS AREAApril – June 2015 vs. 2014

July 16, 2015


15

MSEK

Intangible assets 33 860 32% 33 197 32% 27 232 29%

Rental equipment 3 113 3% 3 177 3% 2 815 3%

Other property, plant and equipment 9 508 9% 9 433 9% 8 324 9%

Other non-current assets 3 690 4% 3 530 3% 3 631 4%

Inventories 18 968 18% 18 364 17% 18 643 20%

Receivables 27 398 26% 26 015 25% 24 786 27%

Current financial assets 1 910 2% 2 150 2% 1 943 2%

Cash and cash equivalents 6 301 6% 9 404 9% 5 364 6%

Assets classified as held for sale 34 0% 11 0% 12 0%

TOTAL ASSETS 104 782 105 281 92 750

Total equity 43 074 41% 50 753 48% 40 220 43%

Interest-bearing liabilities 28 943 28% 26 997 26% 27 793 30%

Non-interest-bearing liabilities 32 765 31% 27 531 26% 24 737 27%

TOTAL EQUITY AND LIABILITIES 104 782 105 281 92 750

Jun. 30, 2015 Dec. 31, 2014 Jun. 30, 2014

BALANCE SHEET

July 16, 2015


16

MSEK 2015 2014

Operating cash surplus 6 170 4 999

of which depreciation added back 1 059 847

Net financial items 367 -422

Taxes paid -1 199 -1 037

Pension funding 36 -14

Change in working capital -520 409

Increase in rental equipment, net -272 -318

Cash flows from operating activities 4 582 3 617

Investments of property, plant & eq., net -399 -331

Other investments, net -194 -378

Cash flow from investments -593 -709

Adjustment, currency hedges of loans -508 194

Operating cash flow 3 481 3 102

Company acquisitions/ divestments -22 -356

April - June

CASH FLOW

July 16, 2015


17

NEAR-TERM OUTLOOK

The overall demand for the Group is expected to increase somewhat.

July 16, 2015


18

COMMITTED TO

SUSTAINABLE PRODUCTIVITY.

July 16, 2015


19

committed to sustainable productivity - zonebourse.com fileq2 in brief growth in service increased...

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