COMMITTED TO SUSTAINABLE PRODUCTIVITY Q3 2016 results October 20, - - PowerPoint PPT Presentation

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COMMITTED TO SUSTAINABLE PRODUCTIVITY Q3 2016 results October 20, - - PowerPoint PPT Presentation

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COMMITTED TO SUSTAINABLE PRODUCTIVITY Q3 2016 results October 20, 2016 2 Q3 IN BRIEF Organic order growth, solid profit and strong cash flow Order growth for all business areas Fifth business area announced Vacuum Technique

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SLIDE 1

COMMITTED TO SUSTAINABLE PRODUCTIVITY

Q3 2016 results October 20, 2016

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SLIDE 2

Q3 IN BRIEF

  • Organic order growth, solid profit and strong cash flow
  • Order growth for all business areas
  • Fifth business area announced

– Vacuum Technique valid from January 2017 – The acquisitions of Leybold and CSK completed

October 20, 2016 Atlas Copco - Q3 results 2016

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SLIDE 3

Q3 FIGURES IN SUMMARY

  • Orders received were MSEK 26 696, organic growth of 7%
  • Revenues were MSEK 26 528, unchanged organically
  • Adjusted operating profit margin 19.6% (20.4)

– Negatively affected by dilutions from acquisitions and currency

  • Operating profit of MSEK 5 023 (5 313), margin at 18.9% (20.7)

– Items affecting comparability of MSEK -166 (+74)

  • Profit for the period of MSEK 3 391 (3 806)
  • Basic earnings per share SEK 2.78 (3.12)
  • Operating cash flow at MSEK 4 958 (4 621)

October 20, 2016 Atlas Copco - Q3 results 2016

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SLIDE 4

Q3 FIGURES IN SUMMARY

  • Orders received were MSEK 26 696, organic growth of 7%
  • Revenues were MSEK 26 528, unchanged organically
  • Adjusted operating profit margin 19.6% (20.4)

– Negatively affected by dilutions from acquisitions and currency

  • Operating profit of MSEK 5 023 (5 313), margin at 18.9% (20.7)

– Items affecting comparability of MSEK -166 (+74)

  • Profit for the period of MSEK 3 391 (3 806)
  • Basic earnings per share SEK 2.78 (3.12)
  • Operating cash flow at MSEK 4 958 (4 621)

October 20, 2016 Atlas Copco - Q3 results 2016

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SLIDE 5

ORDERS RECEIVED - LOCAL CURRENCY

October 20, 2016 Atlas Copco - Q3 results 2016

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September 2016

100 +4 +11

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 23

  • 2

+1 7

  • 4

+1 30 +4 +7 9 +1 +22 27 +13 +20 4 +14 +42

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SLIDE 6

ORDER GROWTH PER QUARTER

Organic growth

October 20, 2016 Atlas Copco - Q3 results 2016

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  • 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 16 Q1 16 Q2 16 Q3 Organic growth, % (volume and price)

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SLIDE 7

ORDER GROWTH PER QUARTER

Growth excl. currency

October 20, 2016 Atlas Copco - Q3 results 2016

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  • 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 16 Q1 16 Q2 16 Q3 Growth, excl. currency, % (volume, price and structure)

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SLIDE 8

SALES BRIDGE

October 20, 2016 Atlas Copco - Q3 results 2016

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Orders Orders MSEK received Revenues received Revenues 2015 24 149 25 723 76 394 76 579 Structural change, % +4 +3 +2 +2 Currency, % +0 +0

  • 3
  • 3

Price, % +0 +0 +0 +0 Volume, % +7 +0 +2

  • 1

Total, % +11 +3 +1

  • 2

2016 26 696 26 528 77 351 75 103 July - September January - September

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SLIDE 9

ATLAS COPCO GROUP

Compressor Technique Industrial Technique Mining and Rock Excavation Technique Construction Technique

Revenues by business area

October 20, 2016 Atlas Copco - Q3 results 2016

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15% 24% 14% 47%

12 months through September 2016

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SLIDE 10

COMPRESSOR TECHNIQUE

  • Record order intake, organic growth of 8%

– Strong growth for vacuum solutions – Tough market conditions for gas and process compressors – Continued growth for service

  • Operating margin at 22.5% (22.8)
  • Acquisitions of Leybold and CSK completed

0% 5% 10% 15% 20% 25% 30% 2 500 5 000 7 500 10 000 12 500 15 000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

October 20, 2016 Atlas Copco - Q3 results 2016

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Extended range of oil-injected rotary screw compressors that deliver unsurpassed efficiency.

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SLIDE 11

INDUSTRIAL TECHNIQUE

  • Increased orders intake, organic growth of 6%

– Strong service growth – Strong Asia

  • Record revenues
  • Operating margin at 23.4% (23.6)

October 20, 2016 Atlas Copco - Q3 results 2016

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New low-reaction battery assembly tool with high accuracy, speed and traceability. 0% 5% 10% 15% 20% 25% 1 000 2 000 3 000 4 000 5 000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Orders received, MSEK Revenues, MSEK Operating margin, %

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SLIDE 12

MINING AND ROCK EXCAVATION TECHNIQUE

  • Organic order growth of 10%

– Mining equipment increased – Service business down year-on-year – up sequentially – Consumables increased

  • Operating margin at 18.7% (20.0)

0% 3% 6% 9% 12% 15% 18% 21% 24% 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

October 20, 2016 Atlas Copco - Q3 results 2016

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New mine truck with increased productivity and capacity, ready for automation.

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SLIDE 13

CONSTRUCTION TECHNIQUE

  • Order growth +1%

– Supported by acquisition

  • Equipment up, lower order intake for specialty rental
  • Operating margin at 10.9% (14.0)

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 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

October 20, 2016 Atlas Copco - Q3 results 2016

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Flexible and versatile portable compressor with a wide pressure range, allowing high utilization.

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SLIDE 14

GROUP TOTAL

0% 5% 10% 15% 20% 25% 30% 5 000 10 000 15 000 20 000 25 000 30 000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

July - September 2016 vs. 2015

October 20, 2016 Atlas Copco - Q3 results 2016

14 MSEK 2016 2015 % Orders received 26 696 24 149 11% Revenues 26 528 25 723 3% Operating profit 5 023 5 313

  • 5%

– as a percentage of revenues 18.9 20.7 Profit before tax 4 716 5 042

  • 6%

– as a percentage of revenues 17.8 19.6 Income tax expense

  • 1 325
  • 1 236

7% – as a percentage of profit before tax

  • 28.1
  • 24.5

Profit for the period 3 391 3 806

  • 11%

Basic earnings per share, SEK 2.78 3.12 Return on capital employed, % 25 27 July - September

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SLIDE 15

PROFIT BRIDGE

July - September 2016 vs. 2015

October 20, 2016 Atlas Copco - Q3 results 2016

15 Volume, price, One-time items Share based MSEK Q3 2016 mix and other Currency Acquisitions LTI programs Q3 2015 Atlas Copco Group Revenues 26 528

  • 120

30 895 25 723 Operating profit 5 023

  • 40
  • 75

65

  • 240

5 313 % 18.9% 33.3% 20.7%

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SLIDE 16

PROFIT BRIDGE – BY BUSINESS AREA

July - September 2016 vs. 2015

October 20, 2016 Atlas Copco - Q3 results 2016

16 Volume, price, One-time items MSEK Q3 2016 mix and other Currency Acquisitions Q3 2015 Compressor Technique Revenues 12 932 202 45 810 11 875 Operating profit 2 905 151

  • 15

60 2 709 % 22.5% 74.8% 22.8% Industrial Technique Revenues 3 841 143 15 15 3 668 Operating profit 897 6 25 866 % 23.4% 4.2% 23.6% Mining and Rock Excavation Technique Revenues 6 212

  • 259
  • 10

6 481 Operating profit 1 163

  • 63
  • 70

1 296 % 18.7% 24.3% 20.0% Construction Technique Revenues 3 646

  • 259
  • 20

70 3 855 Operating profit 398

  • 130
  • 15

5 538 % 10.9% 50.2% 14.0%

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SLIDE 17

BALANCE SHEET

October 20, 2016 Atlas Copco - Q3 results 2016

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MSEK Intangible assets 39 370 34% 33 789 32% 33 520 33% Rental equipment 3 102 3% 3 077 3% 3 076 3% Other property, plant and equipment 10 064 9% 9 069 9% 8 947 9% Other non-current assets 4 298 4% 3 968 4% 4 128 4% Inventories 18 462 16% 18 261 17% 16 906 16% Receivables 28 201 24% 26 817 26% 25 985 25% Current financial assets 1 675 1% 1 674 2% 1 576 2% Cash and cash equivalents 10 785 9% 8 279 8% 8 861 9% Assets classified as held for sale 10 0% 41 0% 11 0% TOTAL ASSETS 115 967 104 975 103 010 Total equity 50 502 44% 46 691 44% 46 750 45% Interest-bearing liabilities 29 476 25% 25 934 25% 25 214 24% Non-interest-bearing liabilities 35 989 31% 32 350 31% 31 046 30% TOTAL EQUITY AND LIABILITIES 115 967 104 975 103 010

  • Sep. 30, 2016
  • Sep. 30, 2015
  • Dec. 31, 2015
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SLIDE 18

CASH FLOW

October 20, 2016 Atlas Copco - Q3 results 2016

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MSEK 2016 2015 2016 2015 Operating cash surplus 6 398 6 168 17 341 17 633

  • f which depreciation added back

1 111 1 148 3 188 3 242 Net financial items

  • 448

130

  • 357
  • 1 182

Taxes paid

  • 1 270
  • 1 266
  • 6 269
  • 3 437

Pension funding

  • 57

7

  • 94

66 Change in working capital 1 166 558 1 720 218 Increase in rental equipment, net

  • 268
  • 181
  • 577
  • 616

Cash flows from operating activities 5 521 5 416 11 764 12 682 Investments of property, plant & eq., net

  • 321
  • 331
  • 876
  • 1 101

Other investments, net

  • 330
  • 253
  • 1 050
  • 682

Cash flow from investments

  • 651
  • 584
  • 1 926
  • 1 783

Adjustment, currency hedges of loans 88

  • 211
  • 516

701 Adjustment, tax payment in Belgium 2 250 Operating cash flow 4 958 4 621 11 572 11 600 Company acquisitions/ divestments

  • 3 692
  • 115
  • 4 656
  • 1 729

July - September January - September

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SLIDE 19

CAPITAL MARKETS DAY 2016

Antwerp, Belgium November 15, 2016 www.atlascopcogroup.com/CMD2016

October 20, 2016 Atlas Copco - Q3 results 2016

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SLIDE 20

NEAR-TERM OUTLOOK

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

October 20, 2016 Atlas Copco - Q3 results 2016

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SLIDE 21

COMMITTED TO SUSTAINABLE PRODUCTIVITY.

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SLIDE 22
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SLIDE 23

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.”

October 20, 2016 Atlas Copco - Q3 results 2016

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