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Atlas Copco Group

Atlas Copco Group. Q2 Results July 16, 2007. Contents. Q2 Business Highlights Market Development Business Areas Financials Outlook. Q2 - Highlights. Strong growth in equipment and aftermarket sales Double-digit growth in all regions Organic order growth 17%

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Atlas Copco Group

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  1. Atlas Copco Group Q2 Results July 16, 2007

  2. Contents • Q2 Business Highlights • Market Development • Business Areas • Financials • Outlook

  3. Q2 - Highlights • Strong growth in equipment and aftermarket sales • Double-digit growth in all regions • Organic order growth 17% • Operating profit exceeds BSEK 3 for the first time • Completion of capital restructuring • Distribution to shareholders of BSEK 27 • ABAC and Dynapac acquisitions finalized • Investments for increased capacity

  4. Q2 - Figures in summary • Revenues up 28% to MSEK 15 985 • 20% organic growth • Operating profit up 30% to MSEK 3 037 • Operating margin at record 19.0% (18.8) • Profit before tax at MSEK 3 215 (2 200) • Including capital gain of MSEK 134 • Profit from continuing operations up 53% to MSEK 2 377 • Earnings per share continuing operations SEK 1.94 (1.23) • Operating cash flow, continuing operations, MSEK 1 232 (964)

  5. Contents • Q2 Business Highlights • Market Development • Business Areas • Financials • Outlook

  6. Orders received - Local currency Group total +27% YTD, +27% last 3 months (Structural change +7% YTD, +10% last 3 months) June 2007

  7. Q2 - The Americas • Solid growth in North America • Good demand from most customer segments within mining, process, and manufacturing industries • Demand from the motor vehicle industry still on the weak side • Strong demand continues from all customer segments in South America June 2007

  8. Q2 - Europe and Africa/Middle East • Positive development in Europe • Healthy demand from manufacturing and process industries • Very strong demand from most customer segments in Eastern Europe • Continued good demand in the Africa / Middle East region • Very strong increase in sales of mining equipment in Africa June 2007

  9. Q2 - Asia and Australia • Asia continues to deliver strong growth • Good demand for industrial equipment in most major markets, particularly in China • Solid growth for construction and mining equipment • Demand from most customer segments remained strong in Australia June 2007

  10. Volume Growth per Quarter Atlas Copco Group, continuing operations • Change in orders received in % vs. same Quarter previous year

  11. Atlas Copco Group – Sales Bridge

  12. Contents • Q2 Business Highlights • Market Development • Business Areas • Financials • Outlook

  13. Atlas Copco Group Operating Profit and Return On Capital Employed (ROCE) by Business Area *including discontinued operations

  14. Compressor Technique • Strong growth for both equipment and aftermarket sales • Organic order growth 20% • Double-digit growth in all regions • Record operating profit • Margin affected negatively by recent acquisitions, comparable units above 21% margin • ABAC acquisition finalized on April 2

  15. Compressor Technique Quarterly operating margins include Prime Energy from Q1 2006.

  16. Construction and Mining Technique • Solid demand from both mining and construction industry • Organic order growth 16% • 21st consecutive quarter with volume growth • Operating profit up 56% • Margin at record level, 17.9% • Comparable units 18.5% • Dynapac acquisition finalized on May 31

  17. Dynapac Expanding presence in the road development market • Consolidated as from June 1 • Revenues increased 7% in the first 6 months of the year • Operating profit contribution of MSEK 65 in June • Almost no amortization of intangibles as Dynapac brand name is deemed to have indefinite useful life and is not amortized • Synergy projects under way

  18. Construction and Mining Technique

  19. Industrial Technique • Strong order growth in general industry offset by weakness in motor vehicle industry • 2% organic order growth in total • High operating profit and margin at 22.9% • New generation of the Tensor tool introduced

  20. Industrial Technique

  21. Contents • Q2 Business Highlights • Market Development • Business Areas • Financials • Outlook

  22. Group Total

  23. Balance Sheet

  24. Capital Structure Net Debt/EBITDA

  25. Cash Flow Continuing operations

  26. Contents • Q2 Business Highlights • Market Development • Business Areas • Financials • Outlook

  27. Near-term Outlook The demand for Atlas Copco’s products and services, from most customer segments such as mining, construction, and the manufacturing and process industries, is expected to remain at the current high level.

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  29. 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 effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.”

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