COMMITTED TO SUSTAINABLE PRODUCTIVITY Q4 2015 results January 28, - - PowerPoint PPT Presentation

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COMMITTED TO SUSTAINABLE PRODUCTIVITY Q4 2015 results January 28, - - PowerPoint PPT Presentation

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COMMITTED TO SUSTAINABLE PRODUCTIVITY Q4 2015 results January 28, 2016 2 ATLAS COPCO RECOGNIZED FOR SUSTAINABILITY Recognized as one of the worlds most sustainable companies for the tenth time by the prestigious annual Global 100 list

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SLIDE 1

COMMITTED TO SUSTAINABLE PRODUCTIVITY

Q4 2015 results January 28, 2016

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SLIDE 2

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

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 3

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

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 4

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)

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 5

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)

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 6

ORDERS RECEIVED - LOCAL CURRENCY

January 28, 2016 Atlas Copco - Q4 results 2015

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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
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SLIDE 7

ORDER GROWTH PER QUARTER

  • 20
  • 10

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

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 8

ORDER GROWTH PER QUARTER

  • 20
  • 10

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

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 9

SALES BRIDGE

January 28, 2016 Atlas Copco - Q4 results 2015

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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

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SLIDE 10

ATLAS COPCO GROUP

Compressor Technique Industrial Technique Mining and Rock Excavation Technique Construction Technique

Revenues by business area

January 28, 2016 Atlas Copco - Q4 results 2015

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14% 26% 15% 45%

12 months until December 2015

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SLIDE 11

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% 2 500 5 000 7 500 10 000 12 500 15 000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

January 28, 2016 Atlas Copco - Q4 results 2015

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Industrial vacuum pump with best-in-class pumping speeds and low running costs

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SLIDE 12

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% 1 000 2 000 3 000 4 000 5 000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Orders received, MSEK Revenues, MSEK Operating margin, %

January 28, 2016 Atlas Copco - Q4 results 2015

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Advanced electric drilling unit for demanding aerospace applications

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SLIDE 13

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% 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

January 28, 2016 Atlas Copco - Q4 results 2015

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Exploration drilling rig with automatic drilling and rod handling, features that increase operator safety and productivity

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SLIDE 14

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% 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

January 28, 2016 Atlas Copco - Q4 results 2015

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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

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SLIDE 15

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% 5 000 10 000 15 000 20 000 25 000 30 000 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

October – December 2015 vs. 2014

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 16

25 360 25 582 45 790 613 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 4 824 40 235 5 217 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 BRIDGE

October – December 2015 vs. 2014

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 17

PROFIT BRIDGE – BY BUSINESS AREA

October – December 2015 vs. 2014

January 28, 2016 Atlas Copco - Q4 results 2015

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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

6 622 Operating profit 1 163

  • 32
  • 30

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%

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SLIDE 18

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

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 19

MSEK 2015 2014 2015 2014 Operating cash surplus 5 914 5 707 23 547 20 426

  • f 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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SLIDE 20

EARNINGS AND DIVIDENDS

January 28, 2016 Atlas Copco - Q4 results 2015

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*Dividend for 2015 as proposed by the Board of Directors 2.38 3.00 3.00 3.00 4.00 5.00 5.50 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 10.68 11.47 9.95 10.01 9.62

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

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SLIDE 21

DIVIDEND OF SEK 6.30* – PAYMENT IN TWO INSTALLMENTS

Proposed preliminary dates for dividend Amount Ex-dividend date Record date Payment First dividend payment SEK 3.15* April 27, 2016 April 28, 2016 May 3, 2016 Second dividend payment SEK 3.15* October 28, 2016 October 31, 2016 November 3, 2016

January 28, 2016 Atlas Copco - Q4 results 2015

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*Dividend for 2015 as proposed by the Board of Directors

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SLIDE 22

NEAR-TERM OUTLOOK

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

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 23

COMMITTED TO SUSTAINABLE PRODUCTIVITY.

January 28, 2016 Atlas Copco - Q4 results 2015

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SLIDE 24
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SLIDE 25

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.”

January 28, 2016 Atlas Copco - Q4 results 2015

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