April 28, 2010 Atlas Copco Group Q1 Results April 28, 2010

April 28, 2010 www.atlascopco.com

Atlas Copco Group

Q1 Results

April 28, 2010

April 28, 2010 www.atlascopco.com2

Contents

Q1 business highlights

Market development

Business areas

Financials

Outlook


Q1 - highlights

Strong recovery in order intake– Significant growth in most emerging markets and in mining

– Record order level in Asia and South America

– Positive development in North America and still weak in Europe

Sales of aftermarket products and services increased

Operating profit margin at 17.2%– Cost and efficiency measures, price and a favorable sales mix gave

support

Strong operating cash flow


Q1 - figures in summary

22% organic order growth

Revenues of MSEK 15 301; 3% organic decline

Operating profit at MSEK 2 627 (2 172)– Operating margin of 17.2% (14.5 adjusted for restructuring)

– Restructuring cost of MSEK 230 in 2009

Profit before tax at MSEK 2 497 (1 794)

Basic earnings per share SEK 1.52 (1.13)

Operating cash flow MSEK 2 223 (2 851)


Contents


Market development

Business areas

Financials

Outlook


Orders received - local currency

March 2010

A BA = Portion of sales, Year-to-date, %

B = Year-to-date vs. prev. year, %

10 +60

16 +47

35 +7

12 +16

21 +37

6 +76

Group total +28%Effect of cancellations +5%, structural change +1%


Q1 - the Americas

Positive development in North America– Strong demand for mining equipment

– Sales of industrial and construction equipment and aftermarket improved

Continued growth in South America– Good demand for all types of equipment

– Order intake at record level

10 +60

16 +47

March 2010




Q1 - Europe and Africa/Middle East

Still weak demand in Europe– Southern Europe remained weak, while some

positive development was noted in Germany and in the Nordic countries

– Solid aftermarket

Some growth in Africa / Middle East– Increased order intake of mining and industrial

equipment

March 2010



35 +7

12 +16


Q1 - Asia and Australia

Record order intake in Asia– Growth in India, China and many other

markets for most types of equipment.

– Negative development in Japan and South Korea.

Strong mining demand in Australia– Sales of construction equipment improved

March 2010



21 +37

6 +76


Organic* growth per quarter

Change in orders received in % vs. same quarter previous year

Atlas Copco Group, continuing operations

*Volume and price


Atlas Copco Group – sales bridge

January March

Orders

MSEK Received Revenues

2009 14 331 16 577

Cancellations, % +5 * -

Structural change, % +1 1

Currency, % -8 -6

Price, % +1 +1

Volume, % +21 -4

Total, % +20 -8

2010 17 267 15 301

*Cancellations in Q1 2009


Contents


Market development

Business areas

Financials

Outlook


Atlas Copco GroupRevenues, operating profit and return on capital employed (ROCE) by business area

Revenues Operating Operating ROCE

MSEK profit margin

12 month values, period ending March 2010 March 2010 March 2010 March 2010

Compressor Technique 31 823 5 945 18.7% 49%Construction and Mining Technique 25 326 3 562 14.1% 18%Industrial Technique 5 392 420 7.8% 16%Eliminations/Common Group Functions -55 -382

Atlas Copco Group 62 486 9 545 15.3% 19%


Compressor Technique

14February 2, 2010, www.atlascopco.com

Improved demand– 10% organic order growth vs. Q1 2009

– Growth drivers were emerging markets and North America

– Improved demand for portable compressors from low levels

Increased aftermarket business

Operating margin at 20.6% – Positively affected by cost and efficiency

measures, sales mix and price.

Acquisition of Quincy Compressor finalized– Except the Chinese operations, where approvals

are expected in the second quarter



*Volume and price


Construction and Mining Technique

38% organic order growth vs. Q1 2009– Strong demand from mining industry

– Sales to construction customers improved from low levels with notable improvement in emerging markets and in road construction equipment

– Growth in service, spare parts and consumables

Operating margin at 15.4% – Affected positively by revenue mix, price, and improved utilization in

manufacturing, but negatively by currencies.


Construction and Mining Technique

*Volume and price


Industrial Technique

27% organic order growth vs. Q1 2009– Record order intake in Asia.

– Sales in North America increased significantly, but from low levels.

– Aftermarket developed positively.

Operating profit margin at 16.4%– Lower costs thanks to restructuring measures

and improved prices supported the margin.



*Volume and price


Contents


Market development

Business areas

Financials

Outlook


Group total

21

January - March

MSEK 2010 2009 %

Orders received 17 267 14 331 +20

Revenues 15 301 16 577 -8

Operating profit 2 627 2 171 +21

- as a percentage of revenues 17.2 13.1

Profit before tax 2 497 1 794 +39

- as a percentage of revenues 16.3 10.8

Profit for the period 1 855 1 378 +35

Basic earnings per share, SEK 1.53 1.13

Return on capital employed, % 19 29


Organic Growth One-time items

MSEK Price/Volume Acq./Div.

Atlas Copco Group

Revenues 15 301 -416 -990 130 16 577

EBIT 2 627 286 -75 244 2 172

% 17.2% - - - 13.1%

Q1 2010 Currency Q1 2009

Profit bridge

22

January – March, 2010 vs 2009


Profit bridge – by business area

23

January – March, 2010 vs 2009

Organic Growth One-time items

MSEK Price/Volume Acq./Div.


Revenues 7 659 -191 -620 110 8 360

EBIT 1 577 148 -90 135 1 384

% 20.6% - - - 16.6%

Construction & Mining Technique

Revenues 6 233 -358 -245 20 6 816

EBIT 960 127 -95 60 868

% 15.4% - - - 12.7%


Revenues 1 483 130 -130 1 483

EBIT 243 137 -20 49 77

% 16.4% 105% - - 5.2%

Q1 2010 Currency Q1 2009


Balance sheet

MSEK Mar 31, 2010 Dec 31, 2009 Mar 31, 2009

Intangible assets 13 607 20% 12 697 19% 13 208 17%

Rental equipment 1 981 3% 2 056 3% 2 344 3%

Other property, plant and equipment 5 974 9% 5 993 9% 6 517 8%

Other fixed assets 5 681 8% 6 556 10% 7 804 10%

Inventories 11 632 17% 11 377 17% 17 000 22%

Receivables 15 896 23% 15 433 23% 20 513 26%

Current financial assets 1 632 2% 1 530 2% 1 780 2%

Cash and cash equivalents 11 958 17% 12 165 18% 8 336 11%

Assets classified as held for sale 64 0% 67 0% 38 0%

TOTAL ASSETS 68 425 67 874 77 540

Total equity 26 384 39% 25 671 38% 25 729 33%

Interest-bearing liabilities 24 612 36% 25 735 38% 30 819 40%

Non-interest-bearing liabilities 17 429 25% 16 468 24% 20 992 27%

TOTAL EQUITY AND LIABILITIES 68 425 67 874 77 540


Capital structure Net Debt*/EBITDA

* Net Debt adjusted for the fair value of interest rate swaps


Atlas Copco AB’s loan maturity profile


Cash flow

27

January - MarchMSEK 2010 2009

Operating cash surplus after tax 2 449 1 885 * of which depreciation added back 574 616Change in working capital 275 1 394Increase in rental equipment, net -63 -91 Cash flows from operating activities 2 661 3 188Investments in tangible fixed assets -177 -291Sale of tangible fixed assets 12 19Other investments, net -273 -65Cash flow from investments -438 -337 Operating cash flow 2 223 2 851Company acquisitions/ divestments -1 361 -142

* Operating cash surplus after tax in 2009 is adjusted for equity hedges in net financial items.


Contents


Market development

Business areas

Financials

Outlook


Near-term outlook

The overall demand for the Group’s products and services is expected to improve somewhat from current levels.

Demand in most emerging markets is foreseen to develop favorably in all business areas. Demand in North America is expected to increase gradually, whereas Europe is expected to remain largely unchanged.


Committed tosustainable productivity.

30

3131


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.”

Documents

April 28, 2010 Atlas Copco Group Q1 Results April 28, 2010