Q4 2018 results January 28, 2019 Q4 in brief Record revenues and - - PowerPoint PPT Presentation

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Q4 2018 results January 28, 2019 Q4 in brief Record revenues and - - PowerPoint PPT Presentation

Dec 31, 2022 12 likes •256 views

Q4 2018 results January 28, 2019 Q4 in brief Record revenues and operating profit Strong operating cash flow Continued solid growth for service Equipment order growth in CT, IT and PT but down in VT Lower volumes from

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January 28, 2019

Q4 2018 results

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Q4 in brief

  • Record revenues and operating profit
  • Strong operating cash flow
  • Continued solid growth for service
  • Equipment order growth in CT, IT and PT but down in VT

– Lower volumes from semiconductor and flat panel display customers – Motor vehicle industry flat

Atlas Copco - Q4 result 2018

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Q4 figures in summary

  • Orders received were MSEK 23 743 (22 459), organic growth of 1%
  • Revenues were MSEK 25 321 (22 645), organic growth of 7%
  • Operating profit increased 17% to MSEK 5 661 (4 859), margin at 22.4% (21.5)

– Adjusted operating margin at 21.9% (22.2)

  • Profit for the period was MSEK 5 203 (3 172)
  • Basic earnings per share were SEK 4.29 (2.61)
  • Operating cash flow was MSEK 4 970 (≈4 000)

Atlas Copco - Q4 result 2018

3 Orders, revenues and operating profit margin

*2016 quarterly figures shows best estimated numbers, as effects of the Split and restatements for IFRS 15, are not fully reconciled. 0% 5% 10% 15% 20% 25% 30% 5 000 10 000 15 000 20 000 25 000 30 000 Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Orders received, MSEK Revenues, MSEK Operating margin, %

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Full year 2018 in brief

  • Record orders, revenues and profit
  • Solid order growth for Compressor Technique, Industrial Technique and Power Technique
  • Vacuum Technique down due to weakened demand in the semicon and flat panel display industry
  • Five acquisitions and one divestment completed
  • Successful split and distribution of Epiroc AB to shareholders
  • Proposed dividend of SEK 6.30 per share (≈5.20 for continuing operations) to be paid in two installments

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Full year 2018 figures in summary

  • Orders received increased 8% to record MSEK 97 132 (90 132), organic growth of 5%
  • Revenues increased 11% to MSEK 95 363 (85 653), organic growth of 8%
  • Operating profit of MSEK 21 187 (18 748)
  • Operating margin of 22.2% (21.9)
  • Operating cash flow about MSEK 13 500 (≈13 300)
  • Basic earnings per share SEK 13.45 (10.41)

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Orders received – local currency

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100 +6 +1

Share of orders received, year-to-date, % Year-to-date vs. previous year, % Last 3 months vs. previous year, %

25 +8 +5 4 +11 +0 31 +8 +3 6

  • 2
  • 1

34 +4

  • 1

December 31, 2018

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Order growth per quarter

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Organic growth %

  • 10
  • 5

5 10 15 20 25 30 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* 16 Q4* 17 Q1* 17 Q2* 17 Q3* 17 Q4* 18 Q1 18 Q2 18 Q3 18 Q4

*2011-2017 excluding Mining and Rock Excavation Technique business area

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Sales bridge

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Orders Orders MSEK received Revenues received Revenues 2017 22 459 22 645 90 132 85 653 Structural change, % +0 +0 +0 +0 Currency, % +5 +5 +3 +3 Organic*, % +1 +7 +5 +8 Total, % +6 +12 +8 +11 2018 23 743 25 321 97 132 95 363

*Volume, price and mix

October - December January - December

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Atlas Copco Group

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Compressor Technique Vacuum Technique Industrial Technique Power Technique

* Share of Group orders received 12 months ending December 2018. 3 month organic order growth compared to previous year.

Orders by business area and organic order growth*

Organic order growth +7%

46%

Organic order growth

  • 17%

Organic order growth +4% Organic order growth +11%

19% 13% 22%

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Compressor Technique

  • Organic order growth of 7%

– Growth for equipment, gas & process compressors in particular – Solid development for service

  • Record revenues, +8% organically
  • Record operating profit

– Margin at 23.1% (22.7)

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Innovation: A new compact oil-injected screw compressor with superior energy efficiency optimized reliability.

0% 5% 10% 15% 20% 25% 30% 2 000 4 000 6 000 8 000 10 000 12 000 Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Orders received, MSEK Revenues, MSEK Operating margin, %

* 2016 figures not restated per IFRS 15.

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SLIDE 11

Vacuum Technique

  • Organic order decline of -17%

– Lower equipment demand from semicon and flat panel display customers – Strong growth for service, supported by high factory utilization and increased market penetration

  • Revenues +1% organically
  • Operating margin at 25.0% (25.8)

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Innovation: A new liquid ring pump for industrial applications offering superior energy efficiency and connectivity.

0% 4% 8% 12% 16% 20% 24% 28% 1 000 2 000 3 000 4 000 5 000 6 000 7 000

Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Orders received, MSEK Revenues, MSEK Operating margin, %

* 2016 figures not restated per IFRS 15.

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Industrial Technique

  • Organic order growth of 4%

– General industry demand up, mainly from off-road, aerospace, and electronics industries – Motor vehicle industry flat – Solid service growth in all major regions

  • Record revenues, +10% organically
  • Operating profit margin at 23.4% (23.2)

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Innovation: A new platform for quality assurance in assembly applications providing joint test, connectivity and quality assurance supervision.

0% 8% 16% 24% 32% 40% 1 000 2 000 3 000 4 000 5 000

Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

* 2016 figures not restated per IFRS 15. Atlas Copco - Q4 result 2018

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Power Technique

  • Organic order growth of 11%

– Good demand from equipment rental companies in the US – Strong growth for specialty rental – Growth for service

  • Record revenues, +9% organically
  • Operating margin at 16.4% (15.4 adjusted)

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*2016 quarterly figures shows best estimated numbers, as effects of the split of the Group and restatements for IFRS 15, are not fully reconciled.

Innovation: An oil-free portable compressor for the specialty rental business offering optimal efficiency and matching airflow for a specific application in any industry.

0% 6% 12% 18% 24% 1 000 2 000 3 000 4 000

Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Orders received, MSEK Revenues, MSEK Operating margin, % Adjusted operating margin, %

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Group total

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October – December 2018 vs. 2017

0% 5% 10% 15% 20% 25% 30% 5 000 10 000 15 000 20 000 25 000 30 000 Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Orders received, MSEK Revenues, MSEK Operating margin, %

*2016 figures shows best estimated numbers, as effects of the split of the Group and restatements for IFRS 15, are not fully reconciled.

Continuing operations

MSEK 2018 2017 Orders received 23 743 22 459 6% Revenues 25 321 22 645 12% Operating profit 5 661 4 859 17% – as a percentage of revenues 22.4 21.5 Profit before tax 5 934 4 551 30% – as a percentage of revenues 23.4 20.1 Income tax expense

  • 731
  • 1 379
  • 47%

– as a percentage of profit before tax 12.3 30.3 Profit for the period from continuing operations 5 203 3 172 64% Basic earnings per share, SEK 4.29 2.61 Return on capital employed, % 33 29 October - December

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Profit bridge

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October – December 2018 vs. 2017

*LTI = Long term incentive

*

Items affecting Volume, price, comparability and Share-based MSEK Q4 2018 mix and other Currency Acquisitions LTI* programs Q4 2017 Atlas Copco Group Revenues 25 321 1 481 1 135 60 22 645 Operating profit 5 661 83 450 30 239 4 859 22.4% 5.6% 21.5%

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Profit bridge – by business area

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October – December 2018 vs. 2017

Items affecting Volume, price, comparability MSEK Q4 2018 mix and other Currency Acquisitions Q4 2017 Compressor Technique Revenues 11 702 800 455 10 10 437 Operating profit 2 709 179 155 5 2 370 23.1% 22.4% 22.7% Vacuum Technique Revenues 5 740 41 350 120 5 229 Operating profit 1 436

  • 124

205 5 1 350 25.0% N/A 25.8% Industrial Technique Revenues 4 871 396 220 40 4 215 Operating profit 1 140 84 80 976 23.4% 21.2% 23.2% Power Technique Revenues 3 146 244 120

  • 110

2 892 Operating profit 515 64 15 20 416 16.4% 26.2% 14.4%

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Balance sheet

Atlas Copco - Q4 result 2018

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*

*Including assets and liabilities related to Epiroc reported as discontinued operations.

MSEK

  • Dec. 31, 2018
  • Dec. 31, 2017*

Intangible assets 30 025 35 151 Fixed assets and other non-current assets 12 907 16 092 Inventories 12 718 18 810 Receivables 24 503 29 994 Cash and current financial assets 16 517 25 791 Assets classified as held for sale

  • 193

Total assets 96 670 126 031 Total equity 42 472 60 601 Interest-bearing liabilities 23 218 28 182 Non-interest-bearing liabilities 30 980 37 248 Total equity and liabilities 96 670 126 031

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Cash flow

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*Including discontinued operations.

MSEK 2018 2017* 2018* 2017* Operating cash surplus 6 496 7 211 28 444 29 187

  • f which depreciation added back

868 1 283 3 922 5 110 Net financial items

  • 267
  • 39
  • 675

329 Taxes paid

  • 972
  • 1 420
  • 5 896
  • 7 306

Pension funding

  • 118
  • 181
  • 392
  • 1 280

Change in working capital 503 1 237

  • 3 391

1 398 Increase in rental equipment, net

  • 248
  • 315
  • 1 276
  • 948

Cash flows from operating activities 5 394 6 493 16 814 21 380 Investments of property, plant & eq., net

  • 505
  • 496
  • 1 922
  • 1 563

Other investments, net

  • 190

393

  • 970
  • 235

Cash flow from investments

  • 695
  • 103
  • 2 892
  • 1 798

Adjustment, pensions

  • 772

Adjustment, currency hedges of loans 271

  • 153

211

  • 1 416

Adjustment, tax payment in Belgium

  • 655

Sale of financial assets

  • 737
  • 737

Operating cash flow 4 970 5 500 14 133 18 856 Company acquisitions/ divestments

  • 8

1 550

  • 1 409

1 040 October - December January - December

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Earnings and dividends

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3.00 3.00 3.00 4.00 5.00 5.50 5.50 6.00 6.30 6.80 7.00 6.30 9.00 12.00 15.00 6.09 8.33 5.14 8.16 10.68 11.47 9.95 10.01 9.62 9.81 13.73 13.45

0.00 5.00 10.00 15.00 20.00 25.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Ordinary dividend per share, SEK Earnings per share, SEK Extra ordinary items, SEK Dividend and redemption per share, SEK 11.92 11.32

Proposed by the Board of Directors

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5.20 6.30 11.93 13.45

5 10 15 20 25

2017 2018 Ordinary dividend per share, SEK Earnings per share, SEK

Earnings and dividends - continuing operations

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Proposed by the Board of Directors

10.41

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Industrial ideas accelerate innovation and drive

  • rganic growth. This is

how we deliver value with the future in mind.

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Near-term outlook

The customer demand is expected to be somewhat lower than the current level.

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Forward looking statements

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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