1. Atlas Copco Group
Q3 Results
October 22, 2010

2. Q3 - highlights Strong order growth Record operating profit and margin
Sequentially higher volumes in all regions and in most customer segments
Record order intake, again, in Asia, South America and Australia
Strong performance in aftermarket
Record operating profit and margin
Revenue volume, sales mix, price, and efficiency measures gave support
Investments in market organization and logistics
October 22, 2010

3. Q3 - figures in summary 35% organic order growth
Revenues of MSEK ; 18% organic growth
Operating profit at MSEK (2 402)
Restructuring cost of MSEK 100
Adjusted operating margin of 21.9% (15.9)
Profit before tax at MSEK (2 210)
Basic earnings per share SEK 2.17 (1.42)
Operating cash flow MSEK (4 275)
October 22, 2010

4. Orders received - local currency
Group total +33% YTD (+31% excl. cancellations), +37% last 3 months
Structural change +2% YTD, +2% last 3 months 31
+20
+26 18
+51
+49 23
+46
+60 10
+11 +1 11
+46
+30 7
+55
+96
September 2010
A =
Share of orders received, year-to-date, %
B =
Year-to-date vs. previous year, %
C =
Last 3 months vs. previous year, % A B C
October 22, 2010

5. Q3 - the Americas Strong growth in North America
Sequential improvement for most types of equipment and for the aftermarket.
The demand from manufacturing and construction industries developed particularly well.
Record level of orders in South America
Continued strong demand from all countries and from most customer segments 18
+51
+49 11
+46
+30
September 2010
A =
Share of orders received, year-to-date, %
B =
Year-to-date vs. previous year, %
C =
Last 3 months vs. previous year, % A B C
October 22, 2010

6. Q3 - Europe and Africa/Middle East
Slightly improved activity in Europe
Sequential improvement in most industries, but sales to construction industry was somewhat weaker than in Q2
Strong growth vs. weak Q3 2009
The best development in the east, with the south at the bottom of the list
Mixed picture in Africa / Middle East
Improved sales to mining industry in South Africa
Lower sales in the Middle East
Aftermarket business developed favorably 31
+20
+26 10
+11 +1
September 2010
A =
Share of orders received, year-to-date, %
B =
Year-to-date vs. previous year, %
C =
Last 3 months vs. previous year, % A B C
October 22, 2010

7. Q3 - Asia and Australia Record order intake in Asia
Strong growth in all major markets
High activity level in all industries supported strong growth in aftermarket
Large mining order from Kazakhstan
Continued favorable mining demand in Australia contributed to record orders received 23
+46
+60 7
+55
+96
September 2010
A =
Share of orders received, year-to-date, %
B =
Year-to-date vs. previous year, %
C =
Last 3 months vs. previous year, % A B C
October 22, 2010

8. Organic* growth per quarter
Atlas Copco Group, continuing operations
Change in orders received in % vs. same quarter previous year
*Volume and price
October 22, 2010

9. Atlas Copco Group – sales bridge
October 22, 2010

10. Atlas Copco Group
Revenues, operating profit and return on capital employed (ROCE) by business area
October 22, 2010

11. Compressor Technique 25% organic order growth vs. Q3 2009
Continued strong demand for stationary and portable compressors
Strong growth in North and South America, Asia and eastern Europe
Very strong development in aftermarket with high growth in emerging markets
Operating margin at 26.0%
Positively affected by volume, efficiency improvements, sales mix, currency and price
Acquisition of Cirmac in October.
Biogas upgrading and gas treatment systems
October 22, 2010

12. Compressor Technique
*Volume and price
October 22, 2010

13. Construction and Mining Technique
Strong growth in both equipment and aftermarket
47% organic order growth vs. Q3 2009
Continued strong demand from the mining industry
Orders for construction equipment somewhat weaker than in Q2
Operating margin at 17.8%
MSEK 100 restructuring cost for consolidating production in Germany
Record high operating margin, excluding restructuring, at 19.2%
Acquisition of manufacturer of mobile crushers and screeners
October 22, 2010

14. Construction and Mining Technique
*Volume and price
October 22, 2010

15. Industrial Technique Improved demand from all customer segments
45% organic order growth vs. Q3 2009
Strong growth in Asia
Rapid growth of aftermarket, particularly in emerging markets
Operating margin increased to 20.2%
Positively affected by increased volumes and cost savings
Acquisition of a distributor business in Michigan, the United States
October 22, 2010

16. Industrial Technique
*Volume and price
October 22, 2010

17. Group total
October 22, 2010

18. Profit bridge
July – September, 2010 vs 2009
October 22, 2010

19. Profit bridge – by business area
July – September, 2010 vs 2009
October 22, 2010

20. Balance sheet
October 22, 2010

21. Capital structure Net Debt*/EBITDA
* Net Debt adjusted for the fair value of interest rate swaps
October 22, 2010

22. Atlas Copco AB’s loan maturity profile
October 22, 2010

23. Cash flow
Operating cash surplus after tax is adjusted for equity hedges in net financial items.
October 22, 2010

24. Capital Markets Day December 1, 2010, in Nacka, Sweden
October 22, 2010

25. Near-term outlook
The overall demand for the Group’s products and services is expected to increase somewhat. The sequential improvement is primarily expected to come from emerging markets.
October 22, 2010

26. October 22, 2010

28. 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.”
October 22, 2010