First in MindFirst in Choice - PowerPoint PPT Presentation

Title: First in MindFirst in Choice


1
First in MindFirst in Choice

• Atlas Copco sells majority stake in the equipment
  rental business
• October 6, 2006

2
The Transaction
Exchange rate SEK/USD, October 5 7.31

• Ripplewood Holdings L.L.C. and Oak Hill Capital
  Management L.L.C. are the buyers of 85.5 of
  equity
• Atlas Copco will retain a 14.5 equity interest
  in RSC
• Total value of the transaction is approximately
  BSEK 28 (BUSD 3.8) in cash and securities
• Estimated net capital gain of BSEK 8
• Closing expected before year-end 2006

3
Value of Transaction
Exchange rate SEK/USD, October 5 7.31

• Cash BSEK 24 (BUSD 3.3)
• Subject to adjustments at closing
• 14.5 equity interest
• Earn-out of maximum BSEK 3 (BUSD 0.4)
• Contingent upon profit development (EBITDA) of
  the business
• Received in notes

4
The Divested Business
Exchange rate SEK/USD, October 5 7.31

• LTM revenues of MSEK 11 535 (MUSD 1 578)
• EBITDA of MSEK 4 847 (MUSD 663), a margin of
  42.0
• 450 rental stores and 5 100 employees

Asia/Australia
Construction and Mining Technique
CompressorTechnique
NorthAmerica
17
18
29
40
Africa/MiddleEast
8
Rental Service North America
Including Prime
20
11
32
Industrial Technique
SouthAmerica
5
20
Europe
Rental Service
5
Atlas Copco in a Snapshot
Continuing operations

• A world leading provider of industrial
  productivity solutions
• Three focused, profitable and strong industrial
  businesses
• The products and services range from compressed
  air and gas equipment, generators, construction
  and mining equipment, industrial tools and
  assembly systems, to related aftermarket and
  rental
• LTM revenues of more than BSEK 47, operating
  margin of 17.8 and high return on capital
  employed
• 25 000 employees

6
Innovative Solutions
Products
Services
Knowledge
7
Businesses and Market Position
Compressors
Construction and Mining
Industrial Tools
8
Atlas Copco
Continuing operations
Asia/Australia
Construction and Mining Technique
CompressorTechnique
NorthAmerica
22
22
37
49
Africa/MiddleEast
SouthAmerica
7
10
14
39
Industrial Technique
Europe
January June 2006
9
Atlas Copco
Revenues, employees and assets by geographic
area Continuing operations
10
Atlas Copco
Revenues, operating profit and capital employed
by business area Continuing operations 2005
11
Atlas Copco
Operating Profit and Return On Capital Employed
(ROCE) by Business Areas
12
Growth
Atlas Copco Group, excl. Professional Electric
Tools and Rental Service
13
Summary
Atlas Copco Today

• Well balanced strong global positions
• 1 or 2 in all important market segments
• High operating margin
• Efficient and effective utilization of capital
  High return on capital employed
• Solid platform for growth

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October 6, 2006 www.atlascopco.com
October 6, 2006 www.atlascopco.com
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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, commercialization and technological
  difficulties, supply disturbances, and the major
  customer credit losses.