Record-high order intake in the quarter 1 first quarter 2012
Quarterly highlights Record-high order intake, 28,894 MSEK Overall strong demand Strong demand for Mining and Machining Solutions Stable demand for Construction and Venture Fragmented demand for Materials Technology EBIT 3,819 MSEK, 15.4% Cost savings ahead of plan ROCE annualized quarter result 23.2% ROCE reported rolling 12 months 16.6% New organization in place Seco Tools integration running according to plan Medical Solutions divested 2 first quarter 2012
Invoicing by market 36% 18% +3% 17% +23% +5% +18% 8% +17% 10% +15% 11% Share of Group total Invoicing (p/v) Q1 2012, change compared with Q1 2011 3 first quarter 2012
Q4 Customer segments Consumer related Aerospace Other Invoicing vs. Q1 2011 > 10% 0 to 10% -10 to 0% < -10% Automotive Energy Mining Sequential trend from last quarter Construction Engineering Pie chart representing share of invoicing 2011 4 first quarter 2012
Order intake MSEK 30 000 25 000 150% 125% Order intake 28,894 MSEK Major mining systems orders 1.6 billion SEK Change p/v +13% 20 000 15 000 10 000 5 000 100% 75% 50% 25% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-5 000-25% -10 000 Order intake Organic order intake change y-o-y -50% 5 first quarter 2012
Invoicing MSEK 30 000 25 000 120% 100% Invoicing 24,838 MSEK Change p/v +10% 20 000 15 000 10 000 80% 60% 40% 5 000 20% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-5 000-20% -10 000 Invoicing Organic invoicing change y-o-y -40% 6 first quarter 2012
EBIT and ROCE Q1 2012 EBIT 3,819 MSEK EBIT margin 15.4% ROCE annualized quarter result 23.2% MSEK 6 000 5 000 4 000 3 000 2 000 1 000 40% 30% 20% 10% ROCE reported rolling 12 months 16.6% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-1 000-10% -2 000-3 000-20% EBIT EBIT margin ROCE 7 first quarter 2012
Q4 Net Working Capital 45% 40% 35% 30% 25% Target 20% 15% 10% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 % of quarterly invoiced sales*4 8 first quarter 2012
Q4 Bridge analysis MSEK Q1 2011 Price/ volume/ Productivity Currency Structure, one-offs* Q1 2012 Group Invoiced sales 22,030 +2,500 +500-150 24,838 EBIT 3,271 +800 +100-375 3,819 EBIT margin 14.8% +32% 15.4% * Includes metal price effects 9 first quarter 2012
Mining Record-high order intake, +40% p/v Major mining systems orders 1.6 bn SEK Increased profitability EBIT 1,494 MSEK (1,208) EBIT margin 17.3% (17.0) Continued strong activity in the mining industry ROCE annualized quarter result 39.5% ROCE reported rolling 12 months 39.4% Net working capital 28% (25) of invoicing 10 first quarter 2012
Machining Solutions Continued strong demand in Automotive, Aerospace, Energy and Engineering Record order intake and invoiced sales Strong demand Increased profitability EBIT 1,875 MSEK (1,535) EBIT margin 24.6% (22.4) Positive demand trend in the first quarter ROCE annualized quarter result 38.3% ROCE reported rolling 12 months 34.8% Net working capital 24% (22) of invoicing Seco Tools integration according to plan 11 first quarter 2012
Materials Technology Continued mixed demand Strong demand in oil/gas Weaker in consumer, electronics and low value added products Strong demand Major order of 400 MSEK for steam generator tubes Continued mixed demand EBIT 349 MSEK (352) EBIT margin 8.5% (8.4) Metal price effect -50 MSEK ROCE annualized quarter result 10.0% ROCE reported rolling 12 months n.a Net working capital 32% (30) of invoicing 12 first quarter 2012
Construction Stable demand trend Improved demand in NAFTA and South America Weaker in Asia Strong demand EBIT 213 MSEK (119) Stable demand EBIT margin 8.7% (5.7) ROCE annualized quarter result 14.1% ROCE reported rolling 12 months 2.5% Net working capital 27% (29) of invoicing 13 first quarter 2012
Venture Stable market trend Positive demand trend for Process Systems and Hard Materials EBIT 355 MSEK (228) EBIT margin 17.6% (12.7) Stable demand ROCE annualized quarter result 19.0% ROCE reported rolling 12 months 1.3% Net working capital 34% (32) of invoicing Medical Solutions divested 14 first quarter 2012
Summary Q1 2012 Record high order intake in the quarter Improved profitability Cost reductions ahead of plan ROCE annualized quarter result 23.2% ROCE reported rolling 12 months 16.6% New organization in place Seco Tools integration running according to plan Medical Solutions divested 15 first quarter 2012
Q4 Q&A session 16 first quarter 2012
Q4 Back-up slides 17 first quarter 2012
Q4 Quarterly financials MSEK Q1 2011 Q1 2012 vs Q1 2011 Order intake 24,901 28,894 +13%* Invoicing 22,030 24,838 +10%* EBIT 3,271 3,819 +17% EBIT margin 14.8% 15.4% - Operating cash flow +1,036 +1,099 +6% Cash flow after investing activities -87 +652 -% * Change in price/volume 18 first quarter 2012
Mining MSEK 10 000 50% 8 000 40% Q1 2012 Order intake 11,793 MSEK 6 000 30% Invoicing 8,639 MSEK 4 000 20% EBIT 1,494 MSEK ROCE 39.4% 2 000 10% ROCE annualized quarter result 39.5% 0 2007 2008 2009 2010 2011 2012 0% -2 000-10% Invoicing EBIT margin ROCE 12 months 19 first quarter 2012
Machining Solutions MSEK 10 000 8 000 50% 40% Q1 2012 Order intake 7,768 MSEK 6 000 30% Invoicing 7,618 MSEK 4 000 20% EBIT 1,875 MSEK 2 000 10% ROCE 34.8% ROCE annualized quarter result 38.3% 0 2007 2008 2009 2010 2011 2012 0% -2 000-10% Invoicing EBIT margin ROCE 12 months 20 first quarter 2012
Materials Technology MSEK 6 000 5 000 60% 50% Q1 2012 4 000 40% Order intake 4,278 MSEK 3 000 30% Invoicing 4,100 MSEK 2 000 20% 1 000 10% EBIT 349 MSEK Adjusted for metal price effects, 0 2007 2008 2009 2010 2011 2012 0% 399 MSEK, 9,8% of invoicing -1 000-10% ROCE n.a -2 000-20% ROCE annualized quarter result 10.0% -3 000 Invoicing EBIT margin, excl metal price effect EBIT margin ROCE 12 months -30% 21 first quarter 2012
Construction MSEK 4 000 40% 3 000 30% Q1 2012 Order intake 2,622 MSEK 2 000 20% Invoicing 2,453 MSEK 1 000 10% EBIT 213 MSEK ROCE 2.5% 0 2007 2008 2009 2010 2011 2012 0% ROCE annualized quarter -1 000-10% result 14.1% -2 000-20% Invoicing EBIT margin ROCE 12 months 22 first quarter 2012
Venture MSEK 4 000 3 000 40% 30% Q1 2012 2 000 20% Order intake 2,432 MSEK 1 000 10% Invoicing 2,015 MSEK 0 2007 2008 2009 2010 2011 2012 0% -1 000-10% EBIT 355 MSEK -2 000-20% ROCE 1.3% -3 000-30% ROCE annualized quarter result 19.0% -4 000-40% -5 000-50% Invoicing EBIT margin ROCE 12 months 23 first quarter 2012
Q4 Income statement MSEK Q1 2011 Q4 2011 Q1 2012 Invoiced sales 22,030 25,104 24,838 Cost of goods sold -13,736-17,060-15,571 Gross profit 8,294 38% 8,044 32% 9,267 37% Admin, sales and R&D costs -4,892-6,077-5,240 Other operating income and expenses -131-318 -208 Operating profit (EBIT) 3,271 15% 1,649 7% 3,819 15% Net financial items -416-509 -448 Profit after financial items 2,855 13% 1,140 5% 3,371 14% Profit for the period 2,126 10% 803 3% 2,505 10% 24 first quarter 2012
Q4 Bridge analysis MSEK Q1 2011 Price/ volume/ productivity Currency Structure, one-offs Q1 2012 Mining Invoiced sales 7,103 +1,325 +200 0 8,639 EBIT 1,208 +300 0-25 1,494 EBIT margin 17.0% +23% 17.3% Machining Solutions Invoiced sales 6,862 +625 +125 0 7,618 EBIT 1,535 +250 +60 +25 1,875 EBIT margin 22.4% +40% 24.6% Materials Technology Invoiced sales 4,179 +100 +75-250 4,100 EBIT 352 +100 +40-150 349 EBIT margin 8.4% +100% 8.5% 25 first quarter 2012
Q4 Bridge analysis MSEK Q1 2011 Price/ volume/ productivity Currency Structure, one-offs Q1 2012 Construction Invoiced sales 2,080 +225 +50 +100 2,453 EBIT 119 +100 0-25 213 EBIT margin 5.7% +44% 8.7% Venture Invoiced sales 1,797 +175 +25 0 2,015 EBIT 228 +75 0 +40 355 EBIT margin 12.7% +43% 17.6% 26 first quarter 2012
Cash flow MSEK 4 500 Operating cash flow Capex / Depreciation 350% 4 000 300% Cash flow from operating activities 1,099 MSEK 3 500 3 000 250% 2 500 200% 2 000 150% 1 500 100% 1 000 500 50% 0 2007 2008 2009 2010 2011 2012 0% 27 first quarter 2012
Q4 Balance sheet MSEK Q1 2011 Q4 2011 Q1 2012 vs Q1 2011 Intangible fixed assets 12,757 11,807 11,619-9% Tangible fixed assets 24,574 25,702 25,404 +3% Financial fixed assets 5,986 6,835 6,504 +9% Inventories 22,550 26,077 27,361 +21% Receivables 20,619 21,979 23,981 +16% Cash and cash equivalents 4,680 5,592 6,854 +46% Assets held for sale - 747 - Total assets 91,166 98,739 101,723 +12% Total equity 34,966 33,891 35,960 +3% Interest-bearing liabilities 28,899 33,073 33,584 +16% Non-interest-bearing liabilities 27,301 31,667 32,179 +18% Liabilities held for sale - 108 - Total equity and liabilities 91,166 98,739 101,723 +12% 28 first quarter 2012
Q4 Loan and duration profile Long term 83% Amount MSEK Average duration US Private Placement 5,697 8 years Fin institutions, EIB, NIB 2,963 3 years Swedish MTN 9,730 5 years European MTN 5,713 2 years Bank loans 479 2 years Share swap 1,353 4 years Short term 17% Commercial paper 0 0 months Swedish MTN 1,385 4 months Bank loans 3,939 3 months Total 31,258 4 years Cash position 6,854 Revolving Credit Facility 10,746 29 first quarter 2012
Q4 Loan maturity profile 8 000 6 000 Loan Cash position 4 000 2 000 0-2 000-4 000-6 000-8 000 30 first quarter 2012
Q4 Financial key figures Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Cash flow from operations, MSEK 1,036 802 2,614 3,312 1,099 Capex, MSEK 897 1,204 1,248 1,585 1,056 ROCE, 12 months 19.8% 19.9% 18.6% 16.0% 16.6% ROE, 12 months 24.5% 24.6% 21.7% 17.3% 18.2% Net debt/equity ratio 0.7 0.9 0.8 0.8 0.7 EPS, SEK 12 months 6.41 6.58 5.78 4.63 5.00 31 first quarter 2012
Q4 Guidance Metal price effects Given currency rates, stock levels and metal prices at end of March, a slightly negative EBIT effect is expected for Q2. Net financial items Net financial items is estimated to be about 2 bn SEK for 2012. Currency effects Given currency rates at quarter end the effect on EBIT would be about +100 MSEK for Q2. Capex Capex is estimated to be about 5-6 bn SEK for 2012. Tax rate The tax rate is estimated to about 26-28% for 2012. 32 first quarter 2012
Q4 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, commercialisation and technological difficulties, supply disturbances, and the major customer credit losses. 33 first quarter 2012