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Atlas Copco Group

Atlas Copco Group

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Atlas Copco Group

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  1. Atlas Copco Group Q4 Results February 14, 2002

  2. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook www.atlascopco-group.com

  3. Q4 Highlights • Weakening demand - order volumes down 5% • Declining rental revenues affect Group profits • Adjusted operating margin 11.8% (14.4) • Profit after financial items MSEK 1,054 after restructuring charge of MSEK 200 • Record operating cash flow of MSEK 1,863 • Proposed dividend SEK 5.50 (5.25) www.atlascopco-group.com

  4. Strategic moves • Strategic moves • Acquisitions to support growth • Grassair, Holland, CT (Q4) • Krupp, Germany, CMT • MAI, Austria, CMT • Liutech, China, CT • Rationalization of manufacturing structure in Milwaukee and in India www.atlascopco-group.com

  5. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook www.atlascopco-group.com

  6. Group Total www.atlascopco-group.com

  7. Volume Growth per Quarter • Change in orders received in % vs. same Quarter previous year www.atlascopco-group.com

  8. Portion of Group Sales, % Change in %, last 3 month trend Orders received, 12 month trend Change in Local Currency -1 December 2001 30 -1 51 -2 9 0 4 -1 4 -2 2 +4 www.atlascopco-group.com

  9. 51 -2 4 -2 12 months, Portion of Group Sales, % 12 months, Change in %, last 3 month trend Q4 - The Americas December 2001 • Weak demand in North America • Non-residential building decline sharply, affecting equipment rental • Weak demand for investment related goods • Stabilization of demand for professional electric tools • South America • Weak trend in Brazil • Good demand from Chile’s mining industry www.atlascopco-group.com

  10. 30 -1 4 -1 12 months, Portion of Group Sales, % 12 months, Change in %, last 3 month trend Q4 - Europe and Africa/Middle East December 2001 • Trend break in Europe • Slowdown for investment-related products • Weak construction segments affect demand for standard products • Growth in Northern and Eastern Europe • Africa/Middle East • Healthy level of demand • Less bulk orders than Q4 2000 www.atlascopco-group.com

  11. 9 0 2 +4 12 months, Portion of Group Sales, % 12 months, Change in %, last 3 month trend Q4 - Asia and Australia December 2001 • Mixed picture in Asia • Continued strong growth in China • Positive signs in South Korea • Weak development in Japan www.atlascopco-group.com

  12. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook www.atlascopco-group.com

  13. Volume Growth Compressor Technique • Change in orders received vs. same quarter previous year, % www.atlascopco-group.com

  14. Compressor Technique • New products and improved market penetration mitigate negative demand trend • Order volumes decline 4 percent • Good level in Europe • Low demand in the Americas • Continued strong growth in China • Operating margin remain high • Acquisition growth • Grassair in December, 2001 • Liuzhou, China in 2002 www.atlascopco-group.com

  15. Volume Growth Rental Service • Change in orders received vs. same quarter previous year, % www.atlascopco-group.com

  16. Rental Service • Decline in revenues due to: • Deteriorating demand • Weak non-residential building segment • Low activity in manufacturing industry • Loss of market presence • Profit margin heavily affected by 15 % drop in rental revenue • Store consolidation program finalized • One-time cost of MSEK 100 • Continued strong cash generation www.atlascopco-group.com

  17. Volume Growth Industrial Technique • Change in orders received vs. same quarter previous year, % www.atlascopco-group.com

  18. Industrial Technique • Order volume decrease slightly • Weakening demand for industrial tools to general industry • Good order level to automotive sector • Improvement for professional electric tools in the U.S. • Restructuring in Milwaukee • MSEK 100 one-time cost www.atlascopco-group.com

  19. Volume Growth Construction & Mining Technique • Change in orders received vs. same quarter previous year, % www.atlascopco-group.com

  20. Construction & Mining Technique • Improved profit margin • in spite of revenue decline • Revenues from use-of-products continued to increase • Lower demand for large investment- related equipment • only few large construction projects • no prospecting or development of existing mines • Acquisition agreements signed • Krupp, demolition equipment, in January • MAI, rock bolts, in February www.atlascopco-group.com

  21. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook www.atlascopco-group.com

  22. Income Statement www.atlascopco-group.com

  23. Income StatementPro-forma (accounting changes) MSEK 2001 Operating profit, before items affecting comparability 6,390 in % of revenue 12.5% capitalization of development cost (IAS in 2002) ~ 300 Pro-forma operating profit ~ 6,690 in % of revenue 13.1% www.atlascopco-group.com

  24. Balance Sheet December 31, 2001 www.atlascopco-group.com

  25. Capital Structure Net Debt/Equity

  26. Atlas Copco Group Return on Capital Employed 12 month values 1997 1998 1999 2000 2001 www.atlascopco-group.com

  27. Cash Flow www.atlascopco-group.com

  28. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook www.atlascopco-group.com

  29. Gunnar BrockPresident and CEO - July 1 www.atlascopco-group.com

  30. Freek NijdamRental Service - February 28 www.atlascopco-group.com

  31. Björn Rosengren Construction and Mining - March 1 www.atlascopco-group.com

  32. 2001 Summary Good accomplishment by the Group • Tough business conditions resulted in only marginally lower volumes • Record earnings per share and cash flow • Board is proposing increased dividend for the 8th consecutive year www.atlascopco-group.com

  33. Earnings per Share and Dividend * *Proposed by the Board of Directors www.atlascopco-group.com

  34. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook www.atlascopco-group.com

  35. Outlook The current overall decline in demand is foreseen to continue in the near-term. As a consequence, lower volumes and profitability are anticipated in the first quarter, primarily in the equipment rental business. There are some indications of an improved business environment in North America, which could positively affect demand in the latter part of the year. www.atlascopco-group.com

  36. The face of interaction www.atlascopco-group.com

  37. 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 the major customer credit losses.” www.atlascopco-group.com

  38. Contents • Q4 Highlights and strategic moves • Market Development • Business Areas • Financials • 2001 Summary • Outlook • Additional Information www.atlascopco-group.com

  39. Orders received, Jan. - Dec. 2001Group Total MSEK 50,916 +9 30 +11 51 +7 9 +11 4 +16 4 +11 2 +4 12 months, Portion of Group Sales, % Change 2001 / 2000, % www.atlascopco-group.com

  40. Long Term Trend www.atlascopco-group.com

  41. Compressor Technique www.atlascopco-group.com

  42. Compressor Technique www.atlascopco-group.com

  43. Construction & Mining Technique www.atlascopco-group.com

  44. Construction & Mining Technique www.atlascopco-group.com

  45. Industrial Technique www.atlascopco-group.com

  46. Industrial Technique www.atlascopco-group.com

  47. Rental Service www.atlascopco-group.com

  48. Rental Service www.atlascopco-group.com

  49. Group Total www.atlascopco-group.com

  50. Items Affecting Comparability www.atlascopco-group.com