COMMITTED TO SUSTAINABLE PRODUCTIVITY...Jan 28, 2016 · Atlas Copco - Q4 results 2015 17 Volume,...

COMMITTED TO

SUSTAINABLE

PRODUCTIVITY

Q4 2015 results

January 28, 2016

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

2

http://www.atlascopco.com/us/AtlasCopcogroup/corporateresponsibility/index.aspx?from_lang_sel=yes

http://www.atlascopco.com/us/AtlasCopcogroup/corporateresponsibility/index.aspx?from_lang_sel=yes

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


3

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


4

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


5

ORDERS RECEIVED - LOCAL CURRENCY

January 28, 2016


6

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

ORDER GROWTH PER QUARTER

-20

-10

0

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


7

ORDER GROWTH PER QUARTER

-20

-10

0

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


8

SALES BRIDGE

January 28, 2016


9

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

ATLAS COPCO GROUP

Compressor Technique

Industrial Technique

Mining and Rock Excavation Technique

Construction Technique

Revenues by business area

January 28, 2016


10

14%

26%

15%

45%

12 months until December 2015

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%

0

2 500

5 000

7 500

10 000

12 500

15 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Orders received, MSEK Revenues, MSEK

Operating margin, % Adjusted operating margin, %

January 28, 2016


11

Industrial vacuum pump with

best-in-class pumping speeds

and low running costs

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%

0

1 000

2 000

3 000

4 000

5 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Orders received, MSEK Revenues, MSEK Operating margin, %

January 28, 2016


12

Advanced electric drilling unit for demanding

aerospace applications

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%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015



January 28, 2016


13

Exploration drilling rig with automatic drilling and rod

handling, features that increase operator safety

and productivity

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%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015



January 28, 2016


14

A portable 100% oil-free compressor for specialty rental applications, equipped with an

engine that conform to the latest emission standards

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%

0

5 000

10 000

15 000

20 000

25 000

30 000

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015



October – December 2015 vs. 2014

January 28, 2016


15

25 360 25 58245 790

613

0

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 82440235

5 217

0

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 BRIDGEOctober – December 2015 vs. 2014

January 28, 2016


16

PROFIT BRIDGE – BY BUSINESS AREAOctober – December 2015 vs. 2014

January 28, 2016


17

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 0 6 622

Operating profit 1 163 -32 -30 0 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%

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


18

MSEK 2015 2014 2015 2014

Operating cash surplus 5 914 5 707 23 547 20 426

of 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

January 28, 2016


19

EARNINGS AND DIVIDENDS

January 28, 2016


20

*Dividend for 2015 as proposed by the Board of Directors

2.383.00 3.00 3.00

4.00

5.005.50 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

10.6811.47

9.95 10.019.62

0

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

DIVIDEND OF SEK 6.30* – PAYMENT IN TWO INSTALLMENTS

Proposed

preliminary dates

for dividend

Amount Ex-dividend date Record date Payment

First dividend

paymentSEK 3.15* April 27, 2016 April 28, 2016 May 3, 2016

Second dividend

paymentSEK 3.15* October 28, 2016 October 31, 2016 November 3, 2016

January 28, 2016


21

*Dividend for 2015 as proposed by the Board of Directors

NEAR-TERM OUTLOOK

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

January 28, 2016


22

COMMITTED TO

SUSTAINABLE PRODUCTIVITY.

January 28, 2016


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.”

January 28, 2016


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COMMITTED TO SUSTAINABLE PRODUCTIVITY...Jan 28, 2016 · Atlas Copco - Q4 results 2015 17 Volume,...

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