Atlas Copco Group
Q4 2012 results
January 31, 2013
Q4 - highlights
Good quarter – record year
 Demand somewhat lower
– Orders decreased for mining equipment and for gas- and process compressors
 Aftermarket business continues to develop well
 Solid profitability
 Strong cash flow
 Atlas Copco again ranked among world’s top sustainable companies
2
January 31, 2013
Q4 - figures in summary
 Orders received decreased to MSEK 21 101, organic decline of 2%
 Revenues up 2% to MSEK 22 748, organic growth 4%
 Operating profit increased to MSEK 4 687 (4 596)
– Includes items affecting comparability of MSEK -192 (-241). Adjusted operating
margin at 21.4% (21.7)
 Profit before tax at MSEK 4 476 (4 436)
 Basic earnings per share SEK 2.80 (2.78)
 Operating cash flow at MSEK 4 290 (1 574)
 Proposed dividend of SEK 5.50 (5.00) per share, totaling MSEK 6 674
3
January 31, 2013
Orders received - local currency
20
+4
100
+4
-1
29
+1
-4
+4
22
11
11
+9
-1
+2
-5
+13 +13
7
December 2012
A
4
January 31, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
+11
-19
Q4 - the Americas
 Continued good demand in North America
– Order intake increased for industrial compressors,
industrial tools and construction equipment
– Decrease for mining equipment
20
+4
+4
 Orders increased in South America
– Positive trend in Brazil
11
– Two large orders for mining equipment
December 2012
A
5
January 31, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
+13 +13
Q4 - Europe and Africa/Middle East
 Orders received decreased year on year but
improved sequentially
– Strong order intake for compressors
29
+1
-4
– Significantly weaker mining demand in Russia
11
 Lower order intake in Africa / Middle East
– No large orders
December 2012
A
6
January 31, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
+9
-5
Q4 - Asia and Australia
 Stable demand in Asia
– Good development in South Korea, India and South
East Asia
– Weak orders for gas and process compressors,
mainly in China
22
-1
+2
 Good order level in Australia
– Fewer large orders compared to previous year
7
December 2012
A
7
January 31, 2013
B
C
A=
B=
C=
Share of orders received, year-to-date, %
Year-to-date vs. previous year, %
Last 3 months vs. previous year, %
+11
-19
01 Q1
01 Q2
01 Q3
01 Q4
02 Q1
02 Q2
02 Q3
02 Q4
03 Q1
03 Q2
03 Q3
03 Q4
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
Organic* growth per quarter
Atlas Copco Group, continuing operations
 Change in orders received in % vs. same quarter previous year
40
8
%
30
20
10
0
-10
-20
-30
-40
Organic growth, %
*Volume and price
January 31, 2013
Order cancellations, %
Atlas Copco Group – sales bridge
MSEK
2011
Structural change, %
Currency, %
Price, %
Volume, %
Total, %
2012
9
January 31, 2013
October - December
Orders
received
Revenues
21 927
22 290
+1
+1
-3
-3
+2
+2
-4
+2
-4
+2
21 101
22 748
January - December
Orders
received
Revenues
86 955
81 203
+2
+2
0
0
+2
+2
0
+7
+4
+11
90 570
90 533
Atlas Copco Group
Revenues per business area
Construction
Technique 14%
38%
Mining
37%
and Rock
Excavation
Technique
11%
Industrial
Technique
12 months until December 2012
10
January 31, 2013
Compressor
Technique
Compressor Technique
 Healthy demand
– Slight increase in orders for industrial
compressors
– Low order intake for gas and process
compressors
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
+30
%
%
+25
25
+20
20
 Record revenues and operating profit
+15
15
 Operating margin at 24.2% (23.3)
+10
10
– Supported by efficiency improvements
+5
5
+0
0
-5
-5
-10
-10
-15
-15
2009 2010 11
Q1
11
30
January 31, 2013
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
Industrial Technique
 Weaker demand for equipment
– Positive development in North America,
negative in Europe and Asia
Organic* revenue growth: Change vs. same period previous year, %
Operating margin, %
+40
%
%
 Strong growth in aftermarket
+30
30
 Operating margin at 22.2% (23.6)
+20
20
+10
10
– Investments in service presence and R&D
0
+0
-10
-10
-20
-20
-30
-30
-40
-40
2009 2010
12
40
January 31, 2013
11
Q1
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
Mining and Rock Excavation Technique
 Weaker demand for equipment
Organic* revenue growth: Change vs. same period previous year, %
– Stable order intake sequentially
– Large orders in South America
Operating margin, %
+50
%
%
 Strong demand for service and parts
+40
40
 Operating margin at 23.8% (25.1)
+30
30
+20
20
+10
10
– Negative effect from lower production
volumes and currency
 Acquisition of shotcreting equipment
manufacturer
+0
0
-10
-10
-20
-20
-30
-30
2009 2010 11
Q1
13
50
January 31, 2013
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
Construction Technique
 Organic order intake up 10%
Organic* revenue growth: Change vs. same period previous year, %
– North America and Asia improving
– Weak Europe
 Adjusted operating margin at 7.1% (6.6)
– Including restructuring costs of
MSEK 65 (75)
– Low production volumes affect profit
 Innovative products introduced
Operating margin, %
+40
%
%
+30
15
+20
10
+10
5
+0
0
-10
-5
-20
-10
-30
-15
-40
-20
2009 2010
14
January 31, 2013
20
11
Q1
11
Q2
11
Q3
11
Q4
12
Q1
12
Q2
12
Q3
12
Q4
Group total
October – December 2012 vs. 2011
MSEK
Orders received
Revenues
Operating profit
– as a percentage of revenues
Profit before tax
– as a percentage of revenues
Profit for the period
Basic earnings per share, SEK
Return on capital employed, %
15
January 31, 2013
October - December
2012
2011
21 101
22 748
21 927
22 290
4 687
20.6
4 476
19.7
3 406
4 596
20.6
4 436
19.9
3 372
2.80
36
2.78
37
Profit bridge
October – December 2012 vs. 2011
MSEK
Atlas Copco Group
Revenues
EBIT
%
16
January 31, 2013
Q4 2012 Organic Growth
Price/Volume
22 748
4 687
20.6%
828
242
29.2%
Currency One-time items Share related
Acq./Div. LTI-programs
-640
-200
270
60
0
-11
Q4 2011
22 290
4 596
20.6%
Profit bridge – by business area
October – December 2012 vs. 2011
Q4 2012 Organic Growth
Price/Volume
MSEK
Compressor Technique
Revenues
9 117
EBIT
2 209
%
24.2%
Industrial Technique
Revenues
2 395
EBIT
532
%
22.2%
Mining and Rock Excavation Technique
Revenues
8 496
EBIT
2 021
%
23.8%
Construction Technique
Revenues
2 911
EBIT
141
%
4.8%
17
January 31, 2013
Currency One-time items
Acq./Div.
Q4 2011
381
193
50.7%
-240
-30
145
-15
8 831
2 061
23.3%
8
-64
nm
-95
-5
45
25
2 437
576
23.6%
402
32
8.0%
-190
-60
80
-10
8 204
2 059
25.1%
57
49
86.0%
-110
-40
0
10
2 964
122
4.1%
Balance sheet
MSEK
18
January 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Intangible assets
Rental equipment
Other property, plant and equipment
Other non-current assets
Inventories
Receivables
Current financial assets
Cash and cash equivalents
Assets classified as held for sale
TOTAL ASSETS
15 879
2 030
6 846
3 836
17 653
21 155
1 333
12 416
1
81 149
20%
3%
8%
5%
22%
26%
2%
15%
0%
15 352
2 117
6 538
3 983
17 579
21 996
1 773
5 716
55
75 109
20%
3%
9%
5%
23%
29%
2%
8%
0%
Total equity
Interest-bearing liabilities
Non-interest-bearing liabilities
TOTAL EQUITY AND LIABILITIES
35 132
22 453
23 564
81 149
43%
28%
29%
28 839
21 939
24 331
75 109
38%
29%
32%
Cash flow
MSEK
Operating cash surplus
of which depreciation added back
Net financial items
Taxes paid
Change in working capital
Increase in rental equipment, net
Cash flows from operating activities
Investments of property, plant & eq., net
Other investments, net
Cash flow from investments
Operating cash flow
Company acquisitions/ divestments
19
January 31, 2013
October - December January - December
2012
2011
2012
2011
5 357
5 199
21 583
19 906
691
703
2 664
2 522
19
-563
-592
-1 275
-1 111
-717
-5 053
-3 307
1 168
-1 371
-1 366
-6 115
-309
-126
-749
-788
5 124
2 422
13 823
8 421
-412
-536
-1 605
-1 676
-422
-312
15
-453
-834
-848
-1 590
-2 129
4 290
1 574
12 233
6 292
-146
-1 582
-1 195
-2 206
2012 – A record year
 Strong demand in the first half, softer towards year end
 Continued investments in market presence, service and product
development
 Investments for operational excellence
 Record results
– Order intake increased 4% to MSEK 90 570
– Revenues up 11% to MSEK 90 533, 9% organic increase
– Operating profit up 9% to MSEK 19 228
 Operating cash flow of MSEK 12 233 (6 292)
 Proposed dividend of SEK 5.50 (5.00) per share, totaling MSEK 6 674
20
January 31, 2013
Revenues and operating profit
%
MSEK
100 000
MSEK
25
25 000
20
20 000
15
15 000
10
10 000
5
5 000
0
0
90 000
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
2008
2009
Revenues, MSEK
21
January 31, 2013
2010
2011
2012
Operating margin, %
2008
2009
2010
2011
Operating profit, MSEK
2012
Atlas Copco Group
Earnings per share, dividend and redemption, SEK
25
22.38
20
15
12.24
9.00
10
8.33
11.45
10.68
8.16
4.84
5
6.09
5.22
5.14
3.71
0
2.61
1.25
1.50
2.13
2.38
3.00
3.00
3.00
4.00
5.00
5.50
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*
Dividend per share
* Proposed by the Board of Directors
22
January 31, 2013
Basic earnings per share
Dividend + redemption per share
Near-term outlook
The overall demand for Atlas Copco’s products and services is
expected to decrease somewhat.
23
January 31, 2013
Committed to
sustainable productivity.
25
January 31, 2013
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.”
26
January 31, 2013