Atlas Copco Ab Class A · OMXSTO:ATCO_A

Atlas Copco Ab Class A — Investor Day (November 2005)

15 slides from Atlas Copco Ab Class A's investor day presentation, Nov 30, 2005

  1. Slide 1: Atlas Copco Group – Capital Markets Day

    First in Mind―First in Choice™ Atlas Copco Group Gunnar Brock, President and CEO Capital Markets Day, November 30, 2005

  2. Slide 2: Our businesses – core competencies

    Our businesses – core competencies Mining and Construction Compressors Service Tools Capital Markets Day November 30, 2005 www.atlascopco.com 2 Our businesses – core competencies Mining and Construction Compressors #1-2 #1 #2 in US Equipment Rental #1 Service Tools Capital Markets Day November 30, 2

  3. Slide 3: What Unites the Atlas Copco Group

    What Unites the Atlas Copco Group The sum of running the parts together must be bigger than the sum of running the parts separately Capital Markets Day November 30, 2005 www.atlascopco.com 5 What Unites the Atlas Copco Group To underline and reinforce ƒ A shared vision and a common identity ƒ The co

  4. Slide 4: To be a leader

    To be a leader ƒ First in Mind―First in Choice™ Customers Business Employees – Lead in the share of mind and partners share of choice of our customers Share- holders ƒ Be seen as the innovator, setting the standards Society and the environment ƒ Exceed high expectations ƒ Be #1 or #2, in every produ

  5. Slide 5: Return on Capital Employed

    Atlas Copco Group September 2005 Structure, sales and operating profit 12 month figures 50 000 25% Construction and Mining Technique 40 000 20% 28% Compressor 17,0% Technique 15,4% 30 000 13,7% 15% 38% 12,3% 12,0% 11,9% 11,1% 20 000 10% 12% 10 000 5% Industrial Technique 22% Rental 0 0% Service -99

  6. Slide 6: Construction and Mining Technique

    Construction and Mining Technique Growth Change in revenue volume and price, % Structural changes, % CAGR, 10 years CAGR, 5 years 50% 40% 30% 20% 18,7% 10% 10,2% 0% -10% 1996 1997 1998 1999 2000 2001 2002 2003 2004 Q1-3 2005 Capital Markets Day November 30, 2005 www.atlascopco.com 14 Construction an

  7. Slide 7: Industrial Technique and Rental Service

    Industrial Technique Revenue volume growth: Change vs. same quarter previous year, % Foundation for Growth Quarterly operating margin, % ƒ Focused industrial tools 20 20 business with global leadership position 15 15 ƒ Innovation rate / technology leadership 10 10 ƒ Aftermarket 5 5 ƒ "House in order

  8. Slide 8: Rental Service and Financial Targets

    Rental Service Equipment availability – driving capital and cost efficiency Time utilization, TTM, % Non available fleet, TTM, % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 00 Q1 00 Q2 00 Q3 00 Q4 01 Q1 01 Q2 01 Q3 01 Q4 02 Q1 02 Q2 02 Q3 02 Q4 03 Q1 03 Q2 03 Q3 03 Q4 04 Q1 04 Q2 04 Q3 04 Q4 05 Q1 0

  9. Slide 9: Growth and Why Atlas Copco Should Succeed

    Growth Atlas Copco Group Change in revenue volume and price, % Structural changes, % CAGR, 10 years CAGR, 5 years 30% 25% 20% 15% 10% 9,5% 6,9% 5% 0% -5% -10% 1996 1997 1998 1999 2000 2001 2002 2003 2004 Q1-3 2005 Milwaukee Prime Rental Service I-R Drilling Electric Tool Service Corporation Solution

  10. Slide 10: Sales Potential – Extend and Defend Core

    ƒ Extend and develop the core and build new businesses and create options that are close to home. Capital Markets Day November 30, 2005 www.atlascopco.com 26 Sales Potential – Extend and Defend Core Segment Presence Penetration Ð Ð Ð Products Distribution Customer share Sales potential 0.75 x 0.5 x

  11. Slide 11: India, Russia and USA – Presence and Penetration

    India – Presence and Penetration ƒ 2 manufacturing locations ƒ 14 sales and service offices in 12 cities ƒ Engineering Center Capital Markets Day November 30, 2005 www.atlascopco.com 29 Russia – Presence and Penetration ƒ 28 offices in Russia ƒ Mongolia ƒ Kazakhstan Capital Markets Day November 30,

  12. Slide 12: Aftermarket and Economic Distance from the Core

    Aftermarket Accessories, consumables, spare parts, service and Maintenance and training ƒ High growth potential ƒ High profit potential ƒ Stable revenue stream ƒ Optimized business processes ƒ Enhanced product development ƒ Closer relationships with end-users ƒ Satisfied customers Capital Markets Da

  13. Slide 13: Growth and Acquisitions

    Growth Screening of alternatives High Attractiveness – Size – Growth – Profits Low Low Value added logic High – Customer/market – Distribution channels / network – Operational capabilities Capital Markets Day – Technologies November 30, 2005 www.atlascopco.com 35 Growth Acquisitions ƒ 8 acquisitions

  14. Slide 14: Operating margin and ROCE

    Operating margin – EBIT margin 12 month figures Atlas Copco Group 20% 17,0% 15,4% 15% 10% 5% 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sept. 2005 ƒ Operating margins restated (IFRS) from 2004 Capital Markets Day November 30, 2005 www.atlascopco.com 38 The Trade Off ƒ Growth ƒ Profitabilit

  15. Slide 15: Summary and Cautionary Statement

    Summary ƒ Atlas Copco is well positioned to deliver on its financial targets Create Shareholder Value 8% Growth Return on revenue 15% Total cost of capital (WACC) Capital turnover Capital Markets Day November 30, 2005 www.atlascopco.com 41 Cautionary Statement ƒ “Some statements herein are forward-l

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