We are committed to sustainable productivity Q1 2018 results April - - PowerPoint PPT Presentation

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We are committed to sustainable productivity Q1 2018 results April - - PowerPoint PPT Presentation

Feb 06, 2024 29 likes •271 views

We are committed to sustainable productivity Q1 2018 results April 25, 2018 2 Strategy into action Close relationship with the customer and a strong application knowledge A fast-track innovation program that reduces interruptions in

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SLIDE 1

We are committed to sustainable productivity

Q1 2018 results April 25, 2018

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SLIDE 2

Strategy into action

Atlas Copco - Q1 results 2018

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  • Close relationship with the customer and a strong

application knowledge

  • A fast-track innovation program that reduces

interruptions in production at semiconductor customers

iXM Dry vacuum pump for the semiconductor industry https://www.youtube.com/watch?v=c5smuhG_KTs

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SLIDE 3

Q1 in brief

  • AGM decision to distribute Epiroc to shareholders
  • Record order intake

– Strong growth for both equipment and service – Solid growth in all major markets

  • Solid operating profit margin

– Positive effects from higher revenue – Negative currency effect

  • Strong order development for Epiroc (discontinued operations)

Atlas Copco - Q1 results 2018

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All figures refer to continuing operations unless otherwise stated, i.e. Epiroc is reported as discontinued operations.

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SLIDE 4

0% 4% 8% 12% 16% 20% 24% 5 000 10 000 15 000 20 000 25 000 Q1 2016* Q2 2016* Q3 2016* Q4 2016* Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Orders received, MSEK Revenues, MSEK Operating margin, %

Q1 figures in summary

  • Orders received were MSEK 24 829 (23 325), organic growth of 9%
  • Revenues were MSEK 21 906 (20 578), organic growth of 9%
  • Adjusted operating profit was MSEK 4 779 (4 412), margin at 21.8% (21.4)

– Reported operating profit up 13% to MSEK 4 833 (4 290), margin at 22.1% (20.8) – Items affecting comparability of MSEK 54 (-122)

  • Profit for the period was MSEK 3 340 (2 896)
  • Basic earnings per share* were SEK 3.64 (3.29)
  • Operating cash flow* was MSEK 2 724 (3 510)

Atlas Copco - Q1 results 2018

4 *Including discontinued operations

*2016 quarterly figures shows best estimated numbers, as effects

  • f the Split and restatements for IFRS 15, are not fully reconciled.
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SLIDE 5

Orders received – local currency

Atlas Copco - Q1 results 2018

5 March 31, 2018

100 +11 22 +7 4 +17 31 +13 6

  • 8

37 +16

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

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SLIDE 6

Order growth per quarter

Organic growth

Atlas Copco - Q1 results 2018

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Update

  • 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* 16 Q4* 17 Q1* 17 Q2* 17 Q3* 17 Q4* 18 Q1

*2011-2017 estimated excluding Mining and Rock Excavation Technique

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SLIDE 7

Sales bridge

Atlas Copco - Q1 results 2018

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Orders MSEK received Revenues 2017 23 325 20 578 Structural change, % +1 +1 Currency, %

  • 4
  • 4

Organic*, % +9 +9 Total, % +6 +6 2018 24 829 21 906

*Volume, price and mix

January - March

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SLIDE 8

Compressor Technique Vacuum Technique Industrial Technique Power Technique

Revenues by business area

Atlas Copco Group

Atlas Copco - Q1 results 2018

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12 months ending March 2018

19% 13% 45% 23%

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SLIDE 9

Compressor Technique

  • Organic order growth of 13%

– Particularly strong development for larger compressors – Asia had the strongest growth

  • Solid operating margin at 23.1% (23.0)

– Supported by volume – Negatively affected by currency

Atlas Copco - Q1 results 2018

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Innovation: A new dryer for the medical market with high energy efficiency and performance. Acquisitions: Walker filtration, a British manufacturer

  • f Equipment of for the treatment of

compressed air, gas and vacuum.

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

Orders received, MSEK Revenues, MSEK Operating margin, %

* 2016 figures not restated per IFRS 15.

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SLIDE 10

Vacuum Technique

  • Organic order growth in spite of tough comparison

– Continued strong semiconductor demand – New product innovations behind strong growth for industrial and high vacuum applications

  • Operating margin at 24.6% (24.7)

– Heavily diluted by currency

Atlas Copco - Q1 results 2018

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Innovation: A new vacuum pump system for industrial customers, designed with variable speed drive for high efficiency and low life-cycle cost.

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 Orders received, MSEK Revenues, MSEK Operating margin, %

* 2016 figures not restated per IFRS 15

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SLIDE 11

Industrial Technique

  • Record order intake, organic growth of 9%

– Continued strong demand from motor vehicle industry – Growing demand from general industry – Strong growth in Asia

  • Solid operating margin at 23.3% (22.5)

Atlas Copco - Q1 results 2018

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Innovation: A new low reaction battery pulse tightening tool offering state of the art ergonomics high productivity.

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

* 2016 figures not restated per IFRS 15

Acquisitions: Klingel Joining Technologies, a company specialized in flow drill technology.

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Power Technique

  • Strong organic order growth of 16%

– Good equipment demand from rental houses – Strongest growth in North America, but all regions contributed to the growth

  • Adjusted operating margin at 15.1% (15.0)

– Negative currency impact – Capital gain of MSEK 109, reported margin 18.9%

Atlas Copco - Q1 results 2018

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Innovation: New TwinPower generator

  • ffers increased flexibility

and reduces fuel consumption.

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

Acquisitions: Location Thermique Service, a French steam boiler specialty rental business.

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

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Epiroc Group

  • Strong organic order growth of 21%

– Double digit growth in all regions – Strong demand for equipment – Growth for service

  • Revenues up 14% organically
  • Operating margin at 18.4% (19.1)

– One time costs of MSEK 95

  • Capital Markets Day on May 30

– Registrations: https://www.epiroc.com/en/cmd-2018

Atlas Copco - Q1 results 2018

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0% 4% 8% 12% 16% 20% 24% 2 000 4 000 6 000 8 000 10 000 12 000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Orders received, MSEK Revenues, MSEK Operating margin, %

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SLIDE 14

0% 4% 8% 12% 16% 20% 24% 28% 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 Orders received, MSEK Revenues, MSEK Operating margin, %

Group total

Atlas Copco - Q1 results 2018

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January – March 2018 vs. 2017

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

Continuing operations

MSEK 2018 2017 % Orders received 24 829 23 325 6% Revenues 21 906 20 578 6% Operating profit 4 833 4 290 13% – as a percentage of revenues 22.1 20.8 Profit before tax 4 513 4 058 11% – as a percentage of revenues 20.6 19.7 Income tax expense

  • 1 173
  • 1 162

1% Profit for the period from continuing operations 3 340 2 896 15% Basic earnings per share, SEK 2.75 2.38 Return on capital employed, % 29 N/A January - March

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SLIDE 15

Profit bridge

January – March 2018 vs. 2017

Atlas Copco - Q1 results 2018

15 *LTI = Long Term Incentive *

Volume, price, One-time items Share-based MSEK Q1 2018 mix and other Currency Acquisitions LTI* programs Q1 2017 Atlas Copco Group Revenues 21 906 1 898

  • 750

180 20 578 Operating profit 4 833 797

  • 455

95 106 4 290 22.1% 42.0% 20.8%

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Profit bridge – by business area

January – March 2018 vs. 2017

Atlas Copco - Q1 results 2018

16 Volume, price, One-time items MSEK Q1 2018 mix and other Currency Acquisitions Q1 2017 Compressor Technique Revenues 9 735 697

  • 270

40 9 268 Operating profit 2 249 299

  • 180

2 130 23.1% 42.9% 23.0% Vacuum Technique Revenues 5 255 697

  • 285

90 4 753 Operating profit 1 292 361

  • 250

5 1 176 24.6% 51.8% 24.7% Industrial Technique Revenues 4 178 303

  • 90

3 965 Operating profit 974 81 893 23.3% 26.7% 22.5% Power Technique Revenues 2 894 259

  • 100

50 2 685 Operating profit 547 74

  • 50

119 404 18.9% 28.6% 15.0%

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SLIDE 17

Balance sheet

Atlas Copco - Q1 results 2018

17 * MSEK Intangible assets 28 993 37 383 35 151 Rental equipment 1 909 2 954 2 934 Other property, plant and equipment 7 674 9 720 9 523 Other non-current assets 2 958 3 825 3 635 Inventories 12 054 18 027 18 810 Receivables 23 503 29 991 29 994 Current financial assets 86 1 645 1 295 Cash and cash equivalents 23 249 15 191 24 496 Assets classified as held for sale 34 202 2 800 193 TOTAL ASSETS 134 628 121 536 126 031 Total equity 67 591 56 476 60 601 Interest-bearing liabilities 25 900 29 169 28 182 Non-interest-bearing liabilities 31 195 34 916 37 192 Liabilities directly associated with assets classified as held for sale 9 942 975 56 TOTAL EQUITY AND LIABILITIES 134 628 121 536 126 031 *Including assets and liabilities related to discontinued operations.

  • Mar. 31, 2018
  • Mar. 31, 2017*
  • Dec. 31, 2017*
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SLIDE 18

Cash flow – including discontinued operations

Atlas Copco - Q1 results 2018

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MSEK 2018 2017 Operating cash surplus 7 467 6 991

  • f which depreciation added back

1 094 1 158 Net financial items 393

  • 823

Taxes paid

  • 1 344
  • 1 820

Pension funding

  • 102
  • 109

Change in working capital

  • 1 708
  • 355

Increase in rental equipment, net

  • 327
  • 145

Cash flows from operating activities 4 379 3 739 Investments of property, plant & eq., net

  • 442
  • 348

Other investments, net

  • 378
  • 241

Cash flow from investments

  • 820
  • 589

Adjustment, currency hedges of loans

  • 835

360 Operating cash flow 2 724 3 510 Company acquisitions/ divestments

  • 669
  • 61

January - March

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Dividend, mandatory share redemption and spin-off

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  • Annual General Meeting April 24, 2018

– Ordinary dividend of SEK 7.00 (6.80) per share or approximately BSEK 8.5 in total – Mandatory share redemption of SEK 8.00 per share, or approximately BSEK 9.7 in total – Dividend of the shares in Epiroc AB

Atlas Copco - Q1 results 2018

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SLIDE 20

Epiroc split - Timeline

Atlas Copco - Q1 results 2018

20 Jan Feb Mar Apr May Jun Jul Transition Audit by Nasdaq Stockholm Stand alone Atlas Copco AGM

2018

Listing on Nasdaq Stockholm

  • Listing Committee decision, Nasdaq Stockholm
  • Publishing of listing prospectus
  • May 30 Epiroc Capital Markets Day

TODAY

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Near-term outlook

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

Atlas Copco - Q1 results 2018

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Committed to sustainable productivity.

Atlas Copco - Q1 results 2018

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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.”

Atlas Copco - Q1 results 2018

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