q3 results 2021 - atlascopcogroup.com
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October 21, 2021
Q3 results 2021
Q3 in brief
Atlas Copco – Q3 results 2021 2
• High demand in all business areas
‒ Continued strong order growth from the semiconductor industry
‒ Solid year-on-year order growth in all business areas and in all regions, previous year still heavily affected by COVID-19
• Sequentially flat order development
‒ Strong order growth for semi equipment offset by most other equipment types
‒ Service volumes unchanged
• Revenues on a high level, negatively affected by supply chain constraints
• Solid profitability and operating cash flow
Atlas Copco – Q3 results 2021 3
Q3 financials
• Orders received were MSEK 33 023 (24 246), organic growth of 36%
• Revenues were MSEK 27 824 (24 849), organic growth of 12%
• Operating profit was MSEK 6 000 (4 760), margin at 21.6% (19.2)
‒ Adjusted operating profit at MSEK 6 109 (5 021), margin of 22.0% (20.2)
• Profit for the period was MSEK 4 557 (3 618)
• Basic earnings per share were SEK 3.74 (2.98)
• Operating cash flow at MSEK 4 664 (5 143)
• Return on capital employed was 27% (24)
0%
5%
10%
15%
20%
25%
30%
35%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
Orders received – local currency
Atlas Copco – Q3 results 2021 4
September 30, 2021
100 +37 +38
Share of orders received,
year-to-date, %
Year-to-date vs.
previous year, %
Last 3 months vs.
previous year, %
24 +45 +44
3 +40 +31
28 +26 +27
4 +13 +10 41 +43 +47
Order growth per quarter
Atlas Copco – Q3 results 2021 5
Organic growth, %
-20
-10
0
10
20
30
40
50
60
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
Q2
18
Q3
18
Q4
19
Q1
19
Q2
19
Q3
19
Q4
20
Q1
20
Q2
20
Q3
20
Q4
21
Q1
21
Q2
21
Q3
*2012-2017 excluding Mining and Rock Excavation Technique business area (now part of Epiroc AB).
Sales bridge
Atlas Copco – Q3 results 2021 6
Orders Orders
MSEK received Revenues received Revenues
2020 24 246 24 849 74 686 74 049
Structural change, % +2 +2 +3 +2
Currency, % -2 -2 -9 -7
Organic*, % +36 +12 +35 +15
Total, % +36 +12 +29 +10
2021 33 023 27 824 96 020 81 379
*Volume, price and mix.
July - September January - September
Orders by business area and organic order development*
Atlas Copco – Q3 results 2021 7
Compressor Technique
Vacuum Technique
IndustrialTechnique
Power Technique
Org. order dev. +23%
* Share of Group orders received 12 months ending September 2021.3 month organic order development compared to previous year.
Org. order dev. +18%16%
11%
29%
44%
Org. order dev. +93%
Org. order dev. +17%
Compressor Technique
Atlas Copco – Q3 results 2021 8
• Solid demand, organic order growth of 18%
‒ Strong year-on-year growth for all equipment types
‒ Continued growth for service year-on-year
‒ Sequential order decline for equipment, service flat
• Record revenues, 7% organic increase
• Operating profit margin at 24.1% (23.0)
‒ Driven by increased organic revenues
• ROCE at 94% (75)
Innovation:
A new range of oil-injected screw compressors, Alup Evoluto 30-45kW. Customers will benefit from higher energy efficiency, lower noise levels, and a reduced surface footprint.
0%
5%
10%
15%
20%
25%
30%
0
2 500
5 000
7 500
10 000
12 500
15 000
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Orders received, MSEK Revenues, MSEK Operating margin, %
• Record orders and 93% organic growth
‒ Strong year-on-year growth for semiconductor and industrial equipment
‒ Continued growth for service
‒ Sequential growth for semiconductor equipment
‒ Industrial vacuum equipment orders below the strong previous quarter
• Revenues up 24% organically
• Operating profit margin at 24.1% (22.8)
‒ Supported by volume and currency
‒ Negatively affected by increased supply-chain related costs
• ROCE at 24% (19)
Vacuum Technique
Atlas Copco – Q3 results 2021 9
Innovation:
New variants of the Edwards iXM dry pumps with an extended applications coverage, offering reduced surface footprint, lower weight, and 30% more energy efficient vs. competing products.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
11 000
12 000
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
Industrial Technique
Atlas Copco – Q3 results 2021 10
• Organic order growth of 17%
‒ Strong year-on-year growth for equipment to automotive and general industry
‒ Continued growth for service
‒ Sequential growth for equipment to general industry and service
‒ Auto equipment below previous quarter
• Revenues increased 7% organically
• Operating margin at 20.7% (12.2, adjusted 15.9)
‒ Driven by volume and mix
• ROCE at 15% (16)
Innovation:
A new dispensing system, Scheugenpflug DosPL DPL2001/DosP DP2001, offering high productivity, process reliability and accuracy in production of battery systems, electrical connectors components, and displays.
0%
5%
10%
15%
20%
25%
30%
0
1 000
2 000
3 000
4 000
5 000
6 000
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
Power Technique
Atlas Copco – Q3 results 2021 11
• Organic order growth of 23%
‒ Strong year-on-year growth for equipment, specialty rental and service
‒ Sequential growth for specialty rental, service orders unchanged
‒ Equipment orders below previous quarter
• Revenues increased 13% organically
• Operating profit margin at 16.5% (14.0)
‒ Supported by increased organic revenues, including mix, and currency
• ROCE at 25% (19)
Innovation:
A new range of portable compressors, the XAS 500 and LUY15, suitable for harsh working conditions and offers reduced fuel consumption compared to previous models.
0%
8%
16%
24%
32%
40%
0
1 000
2 000
3 000
4 000
5 000
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
Group total
Atlas Copco – Q3 results 2021 12
July – September 2021 vs. 2020
MSEK 2021 2020
Orders received 33 023 24 246 36%
Revenues 27 824 24 849 12%
EBITA* 6 373 5 119 24%
– as a percentage of revenues 22.9 20.6
Operating profit 6 000 4 760 26%
– as a percentage of revenues 21.6 19.2
Net financial items -55 -64
Profit before tax 5 945 4 696 27%
– as a percentage of revenues 21.4 18.9
Income tax expense -1 388 -1 078 29%
– as a percentage of profit before tax 23.3 23.0
Profit for the period 4 557 3 618 26%
Basic earnings per share, SEK 3.74 2.98
Return on capital employed, % 27 24
Return on equity, % 30 27
* Operating profi t excluding amortization of intangibles related to acquis i tions .
July - September
0%
5%
10%
15%
20%
25%
30%
35%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Orders received, MSEK Revenues, MSEK
Operating margin, % Adjusted operating margin, %
Profit bridge
Atlas Copco – Q3 results 2021 13
July – September 2021 vs. 2020
Volume, price, Items affecting Share-based
MSEK Q3 2021 mix and other Currency Acquisitions comparability LTI* programs Q3 2020
Atlas Copco Group
Revenues 27 824 2 945 -380 410 24 849
Operating profit 6 000 1 038 50 0 160 -8 4 760
21.6% 19.2%
*LTI= Long term incentive
Profit bridge – by business area
14
July – September 2021 vs. 2020
Atlas Copco – Q3 results 2021
Volume, price, Items affecting
MSEK Q3 2021 mix and other Currency Acquisitions comparability Q3 2020
Compressor Technique
Revenues 12 792 882 -160 180 11 890
Operating profit 3 087 408 -40 -10 0 2 729
24.1% 23.0%
Vacuum Technique
Revenues 7 249 1 421 -130 30 5 928
Operating profit 1 748 364 30 0 0 1 354
24.1% 22.8%
Industrial Technique
Revenues 4 630 314 -55 150 4 221
Operating profit 958 250 35 0 160 513
20.7% 12.2%
Power Technique
Revenues 3 312 365 -35 50 2 932
Operating profit 548 123 5 10 0 410
16.5% 14.0%
Balance sheet
Atlas Copco – Q3 results 2021 15
*
MSEK
Intangible assets 49 754 48 795 45 840
Rental equipment 2 409 2 487 2 255
Other property, plant and equipment 11 688 11 642 11 136
Other non-current assets 3 309 3 447 3 190
Inventories 16 622 14 704 13 450
Receivables 30 715 27 464 25 777
Current financial assets 625 138 58
Cash and cash equivalents 17 106 10 251 11 655
Assets classified as held for sale 5 5 5
TOTAL ASSETS 132 233 118 933 113 366
Total equity 61 857 57 073 53 534
Interest-bearing liabilities 27 380 29 051 28 134
Non-interest-bearing liabilities 42 996 32 809 31 698
TOTAL EQUITY AND LIABILITIES 132 233 118 933 113 366
Sep. 30, 2021 Sep. 30, 2020 Dec. 31, 2020
Cash flow
Atlas Copco – Q3 results 2021 16
July - September January - September
MSEK 2021 2020 2021 2020
Operating cash surplus 7 285 6 023 21 326 18 223
of which depreciation added back 1 400 1 300 4 016 3 877
Net financial items -69 310 64 68
Taxes paid -1 607 -1 729 -4 939 -3 905
Pension funding -68 -78 -214 -236
Change in working capital 77 1 707 -768 984
Increase in rental equipment, net -147 -59 -355 -327
Cash flows from operating activities 5 471 6 174 15 114 14 807
Investments of property, plant & eq., net -513 -333 -1 249 -1 047
Other investments, net -312 -362 -1 002 -938
Cash flow from investments -825 -695 -2 251 -1 985
Adjustment, currency hedges of loans 18 -336 -135 -371
Operating cash flow 4 664 5 143 12 728 12 451
Company acquisitions/ divestments -1 591 -123 -2 309 -12 921
Near-term outlook
Atlas Copco – Q3 results 2021 17
Atlas Copco expects that the customers’ business activity level will remain high, but weaken compared to the very high level in the third quarter.
atlascopcogroup.com
Forward-looking statements
“Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors
explicitly commented uponother factors could have a material effect on the actual outcome. Such factors include, but are not
limited to, general business conditions, fluctuations in exchange rates and interest rates, political developments, the impact of
competing products and their pricing, product development, commercialization and technological difficulties, interruptions in
supply, and major customer credit losses.”
Atlas Copco – Q3 results 2021 19
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