Atlas Copco - Annual Report 1999

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Contents Summary Atlas Copco 1999 1 Chairman of the Board 2 Atlas Copco Group The Board of Directors’ Report 3 Consolidated Income Statement 10 Consolidated Balance Sheet 11 Cash Flow Statement 12 Notes to Atlas Copco Group Cash Flow Statement 13 Atlas Copco AB Cash Flow Statement 12 Income Statement 14 Balance Sheet 14 Notes to the Financial Statements Accounting Principles 15 Definitions 17 Notes 18 Goodwill 29 Shares and Participations 30 Financial Exposure 32 US and International Accounting Standards 34 Appropriation of Profit 36 Auditors’ Report 36 Atlas Copco Group and Operations Letter from the CEO 38 Atlas Copco and the Business Environment 40 Compressor Technique Stable Demand for Industrial Compressors and Generators 44 Construction and Mining Technique Continuous Improvements on Recovering Markets 50 Industrial Technique Competition Intensifies in Dynamic Markets 56 Rental Service New Business Area Highlights Emphasis on Services 62 Special Projects / Activities Group Common Projects 66 Internet 67 Environmental Work 68 Professional Development 70 Excellence in Sales 71 Investor and Shareholder Information The Atlas Copco Share 72 Five Years in Summary 75 Quarterly Data 76 Summary in USD and EUR 77 Group Management 81 Board of Directors and Auditors 82 Financial Information 84 Addresses to Divisions 85 Cover Atlas Copco Rental Europe equipment and services for the pressurization of a nuclear power plant containment with a free air volume of 44 021 m 3 .
Atlas Copco 1999 Revenues Group revenues increased 7 percent, to SEK 36,234 m. (33,740) mainly as a result of acquisitions related to the Rental Service Business Area. Overall, the North American market demand remained strong. In Europe, the demand was flat, while most Asian countries showed a strong recovery in the latter part of the year. Earnings Profit after financial items decreased 6 percent, to SEK 3,412 m. (3,637), corresponding to a profit margin of 9.4 (10.8) percent. The profit includes SEK 83 m. resulting from the net effect of the divestment of Atlas Copco Controls and a non-recurring charge for restructuring the Alliance Tools division. Net profit after tax amounted to SEK 2,247 m. (2,283). Earnings per share was SEK 11.50 (11.96), adjusted for the effects of the equity rights issue. Equity rights issue In October 1999 an equity rights issue provided the Group with net proceeds of around SEK 4.1 billion. Proposed Dividend The Board of Directors proposes a dividend of SEK 4.75 (4.32) per share. Acquisitions and Divestments In July 1999, Atlas Copco acquired the U.S.-based Rental Service Corporation (RSC) which operates more than 290 equipment rental yards in North America and serves more than 250,000 customers. RSC constitutes a new division in the Rental Service business area. During the year, Compressor Technique acquired two compressor rental companies, ABIRD BV, based in the Netherlands, and Rand-Air Ltd., in South Africa. In October, Industrial Technique acquired Tool Technics NV, a Belgian service company that focuses on the automotive industry. During the year Industrial Technique divested Atlas Copco Controls, the motion control products manufacturer, to Danaher Corporation, in the U.S. Market Outlook Overall, demand is foreseen to be better in year 2000 than in 1999. The North American economy is expected to remain strong. Europe is foreseen to improve and the Asian recovery to continue. Revenues and Earnings per Share SEK m. SEK 40,000 15 32,000 24,000 16,000 8,000 0 95 96 97 98 99 Revenues Earnings per share 12 9 6 3 0 ATLAS COPCO 1999 1
Page 1: Atlas Copco Annual Report 1999 99 A
Page 5 and 6: The Board of Directors’ Report on
Page 7 and 8: Wuxi compressor plant in China exte
Page 9 and 10: ponding to a margin of 6.9 percent
Page 11 and 12: Product development 1999 1998 Resea
Page 13 and 14: Consolidated Balance Sheet ATLAS CO
Page 15 and 16: Notes to Atlas Copco Group Cash Flo
Page 17 and 18: Notes to the Financial Statements S
Page 19 and 20: The Parent Company reports all leas
Page 21 and 22: Remuneration and other fees for mem
Page 23 and 24: 8 Taxes Group Parent Company 1999 1
Page 25 and 26: NOTES TO THE FINANCIAL STATEMENTS N
Page 27 and 28: 18 Shareholders’ equity Group Sha
Page 29 and 30: 23 Current liabilities to credit in
Page 31 and 32: Goodwill The Group applies an amort
Page 33 and 34: Number of Per- Book shares cent val
Page 35 and 36: ing this report in February 2000, t
Page 37 and 38: for sale and recorded at fair value
Page 39 and 40: On January 1, 1999, the Rental Serv
Page 41 and 42: fully served previously. The Prime
Page 43 and 44: ATLAS COPCO AND THE BUSINESS ENVIRO
Page 45 and 46: Distribution of Revenues by Busines
Page 47 and 48: Investments The business area inves
Page 49 and 50: Lead time cut from 35 days to six T
Page 51 and 52: Premier web pages improve informati
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Structural changes To adjust to dep
Page 55 and 56:
Protecting operator and environment
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Uniroc offers full service to Mount
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ics for the end-user. Also, in-hous
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Starting in October 1999 and runnin
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Moving customer-supplier relationsh
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efficient way to develop already es
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A hub system to serve non-urban are
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Internet Makes Impact as Business T
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Evaluation of power tools To develo
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Excellence in Sales Every year, the
Page 75 and 76:
ight to existing shareholders. The
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Five Years in Summary Atlas Copco G
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Summary in USD and EUR Atlas Copco
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Consolidated Balance Sheet in USD a
Page 83 and 84:
Group Management Giulio Mazzalupi P
Page 85 and 86:
Kurt Hellström Ulla Litzén Tore H
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Addresses Group Center Atlas Copco
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Atlas Copco - Annual Report 1999

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