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January 28, 2019
Q4 2018 results
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 20182
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 20183
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%
0
5 000
10 000
15 000
20 000
25 000
30 000
Q12016*
Q22016*
Q32016*
Q42016*
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Orders received, MSEK Revenues, MSEK Operating margin, %
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
Atlas Copco - Q4 result 20184
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)
Atlas Copco - Q4 result 20185
Orders received – local currency
Atlas Copco - Q4 result 20186
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
Order growth per quarter
Atlas Copco - Q4 result 20187
Organic growth %
-10
-5
0
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 Q
2
18 Q
3
18 Q
4
*2011-2017 excluding Mining and Rock Excavation Technique business area
Sales bridge
Atlas Copco - Q4 result 20188
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
Atlas Copco Group
Atlas Copco - Q4 result 20189
Compressor Technique
Vacuum Technique
IndustrialTechnique
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%
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)
Atlas Copco - Q4 result 201810
Innovation:
A new compact oil-injected screw compressor with superior energy efficiency optimized reliability.
0%
5%
10%
15%
20%
25%
30%
0
2 000
4 000
6 000
8 000
10 000
12 000
Q12016*
Q22016*
Q32016*
Q42016*
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Orders received, MSEK Revenues, MSEK Operating margin, %
* 2016 figures not restated per IFRS 15.
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)
Atlas Copco - Q4 result 201811
Innovation:
A new liquid ring pump for industrial applications offering superior energy efficiency and connectivity.
0%
4%
8%
12%
16%
20%
24%
28%
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Q12016*
Q22016*
Q32016*
Q42016*
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Orders received, MSEK Revenues, MSEK Operating margin, %
* 2016 figures not restated per IFRS 15.
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)
12
Innovation:
A new platform for quality assurance in assembly applications providing joint test, connectivity and quality assurance supervision.
0%
8%
16%
24%
32%
40%
0
1 000
2 000
3 000
4 000
5 000
Q12016*
Q22016*
Q32016*
Q42016*
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Orders received, MSEK Revenues, MSEKOperating margin, % Adjusted operating margin, %
* 2016 figures not restated per IFRS 15.
Atlas Copco - Q4 result 2018
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)
Atlas Copco - Q4 result 201813
*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%
0
1 000
2 000
3 000
4 000
Q12016*
Q22016*
Q32016*
Q42016*
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
Group total
Atlas Copco - Q4 result 201814
October – December 2018 vs. 2017
0%
5%
10%
15%
20%
25%
30%
0
5 000
10 000
15 000
20 000
25 000
30 000
Q12016*
Q22016*
Q32016*
Q42016*
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
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
Profit bridge
Atlas Copco - Q4 result 201815
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%
Profit bridge – by business area
Atlas Copco - Q4 result 201816
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 0 976
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%
Balance sheet
Atlas Copco - Q4 result 201817
*
*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
Cash flow
Atlas Copco - Q4 result 201818
*Including discontinued operations.
MSEK 2018 2017* 2018* 2017*
Operating cash surplus 6 496 7 211 28 444 29 187
of 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
Earnings and dividends
Atlas Copco - Q4 result 201819
3.00 3.00 3.00
4.00
5.005.50 5.50
6.00 6.306.80 7.00
6.30
9.00
12.00
15.00
6.09
8.33
5.14
8.16
10.68
11.47
9.95 10.019.62
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
5.206.30
11.93
13.45
0
5
10
15
20
25
2017 2018
Ordinary dividend per share, SEK Earnings per share, SEK
Earnings and dividends - continuing operations
Atlas Copco - Q4 result 201820
Proposed by the Board of Directors
10.41
Industrial ideas accelerate innovation and drive organic growth. This is how we deliver value with the future in mind.
Near-term outlook
The customer demand is expected to be somewhat lower than the current level.
Atlas Copco - Q4 result 201822
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.
Atlas Copco - Q4 result 201824
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