Alfa Laval AB · OMXSTO:ALFA
Alfa Laval AB — Q3 2013 Earnings Presentation
34 slides from Alfa Laval AB's earnings presentation, 2013
Slide 1: Alfa Laval
Slide 2: Report for Q3 2013
Report for Q3 2013 - Key figures -Orders received and margins -Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 3: Key figures
Key figures July – September 2013 Orders received rose 2% to SEK 7,447 million. Net sales increased 2% to SEK 7,204 million. Adjusted EBITA grew 2% to SEK 1,198 million. Adjusted EBITA margin 16.6% vs 16.7% - Negative currency effect SEK 47 million. January – September 2013 Orders received declined
Slide 4: Report for Q3 2013
Report for Q3 2013 - Key figures -Orders received and margins -Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 5: Orders received
Orders received SEK million SEK million R 12 9 000 32 000 8 000 28 000 7 000 24 000 6 000 20 000 5 000 16 000 4 000 12 000 3 000 8 000 +23% 2 000 +4% +37% -30% -6% 1 000 4 000 0 0 Q210 Q311 Q111 Q411 Q312 Q110 Q310 Q410 Q211 Q309 Q409 Q412 Q213 Q113 Q313 Q112 Q212 = Order intake per quarter “large”
Slide 6: Order analysis
Order analysis Q3 2013 versus Q3 2012 and versus Q2 2013 (MSEK) Q3 2012 7,288 Q2 2013 7,558 Structural change, % + 2.1 + 0.1 Organic development, % + 2.2 - 0.4 Total + 4.3 - 0.3 Currency effects,% - 2.1 - 1.2 Total, % + 2.2 - 1.5 Q3 2013 7,447 Q3 2013 7,447 © Alfa Laval Slide 6 www.alfalaval.com
Slide 7: Adjusted EBITA / margin
Adjusted EBITA / margin* SEK millions and in percent of sales 1 800 24,0 1 575 21,0 1 350 18,0 1 125 15,0 900 12,0 675 9,0 450 6,0 225 3,0 0 0,0 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up
Slide 8: Report for Q3 2013
Report for Q3 2013 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 9: Highlights in the quarter
Highlights in the quarter Process Technology Marine & Diesel Alfa Laval Packniox heat exchangers to a Alfa Laval Aalborg waste heat recovery petrochemical plant in India. systems to diesel power plants in the Value: SEK 185 million Middle East. Value: SEK 80 million. Compact heat exchangers to an LN
Slide 10: Report for Q3 2013
Report for Q3 2013 - Key figures - Orders received and margins - Development per segment - Geographical development - Financials - Outlook
Slide 11: Orders received by customer segment
Orders received by customer segment July – September 2013, at constant rates and like for like PTD Parts & Service + - Industrial Equipment + OEM Process Industry + = Sanitary Equipment = EQD Parts & Service Energy & Environment - + Marine & Offshore Systems = Marine & Diesel Equipment Food Technolo
Slide 12: Equipment division
Equipment division Highlights and sequential comments Sanitary Sanitary unchanged with good demand for 10%* products going to beverage, pharma and personal care industries. == Industrial Equipment affected by drop in demand Industrial for refrigeration. Continued good demand for Equipment 12% produc
Slide 13: Process Technology division
Process Technology division Highlights and sequential comments Food Tech. Energy & Environment saw a continued positive 8%* development for Oil & Gas as well as a strong quarter for Power. + - Food down as a result of non-repeat large orders. Energy & Environ. Growth for Brewery and Vegetable Oil. 1
Slide 14: Marine & Diesel division
Marine & Diesel division Highlights and sequential comments Marine & Diesel Marine & Diesel Equipment declined amid a Equipment 7%* drop in order intake for ballast water treatment systems. Diesel had a strong development following a large order in the Middle East. = - Marine & Offshore Systems Mari
Slide 15: Orders received by customer segment
Orders received by customer segment January – September 2013, at constant rates and like for like PTD Parts & Service + = Industrial Equipment + OEM Process Industry - = Sanitary Equipment Energy & Environment - = EQD Parts & Service + Marine & Offshore Systems - Marine & Diesel Food Technology + Eq
Slide 16: Report for Q3 2013
Report for Q3 2013 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 17: Orders received by Region
Orders received by Region July – September 2013, development at constant rates Latin America 7% +8 North America 18% -11 +3 -1 +20 Asia 35% Western Europe 21% +9 Central & Eastern Nordic 9% Europe 8% Year-on-year comparison © Alfa Laval www.alfalaval.com
Slide 18: Highlights Asia
Highlights Asia July – September 2013 , at constant rates, sequential comments Asia: Positive development as all three divisions reported growth. Segments Energy & Environment, Process +20 +9 Industry and Marine & Offshore Systems did particularly well, lifted by investments in refinery, oil and gas
Slide 19: Highlights Europe
Highlights Europe July – September 2013, at constant rates, sequential comments +8 -19 -11 -4 +3 -6 Western Europe incl. Nordic: Central and Eastern Europe: Decline due to vacation impact on Drop explained by development for base component businesses. business and the non-repeat of large Nordic down
Slide 20: Highlights Americas
Highlights Americas July – September 2013, at constant rates, sequential comments North America: U.S. growth mitigated by a decline in Canada. Base and service business grew. Food Technology did well, but strongest development -1 +1 seen in Energy & Environment where oil & gas grew, despite the cont
Slide 21: Orders received by Region
Orders received by Region January – September 2013, development at constant rates Latin America 7% +2 North America 19% -11 +2 = +1 Asia 32% Western Europe 22% +6 Central & Eastern Europe 8% Nordic 10% Year-on-year comparison © Alfa Laval www.alfalaval.com
Slide 22: Top markets
Top 10 markets* SEK million at prevailing rates = R12 as per end of September *The development of the 2012 top ten markets. = WY 2012 © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: Report for Q3 2013
Report for Q3 2013 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group
Slide 24: Highlights
Highlights SEK millions July – September 2013 Order intake 7,447 Net sales 7,204 © Alfa Laval Slide 24 www.alfalaval.com
Slide 25: Gross profit margin
Gross profit margin In percent of sales 50 41.7 38.3 36.7 40 37.0 30 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 © Alfa Laval www.alfalaval.com
Slide 26: Highlights
Highlights SEK millions July – September 2013 Order intake 7,447 Net sales 7,204 Adjusted EBITA 1,198 Adjusted EBITA-margin 16.6% Profit before tax 1,075 Earnings per share 1.95 Earnings per share, excl step-up 2.14 ROCE 26.1% ROE 21.4% © Alfa Laval Slide 26 www.alfalaval.com
Slide 27: Cash-flow statement
Cash-flow statement Q3 Q3 9M 9M SEK millions 2013 2012 2013 2012 Cash flow from - operating activities 988 992 3,000 2,669 - investing activities - 97 - 477 - 788 - 1,974 Financial net paid - 32 + 29 - 51 - 23 Total 859 544 2,161 672 Pro Forma Free cash-flow* 850 912 2,661 2,292 *Incl. operating act
Slide 28: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q3 13 9M 13 FY 13 FY 14* Translation effect - 32 - 130 - 240 0 Transaction effect -15 - 12 - 25 - 15 Total - 47 - 142 - 265 - 15 *Based on EUR/USD 1.36 and EUR/SEK 8.65 Projected FX-effect for 2013 as communicated w
Slide 29: Order backlog as per Sept. 30
Order backlog as per Sept. 30 SEK millions 16 000 15,496 15,071 14 000 12 000 10 000 8,791 8,399 8 000 6 000 6,705 6,672 4 000 2 000 Book 0 to bill Q309 Q310 Q311 Q312 Q313 For delivery later than current year For delivery in rest of current year © Alfa Laval Slide 29 www.alfalaval.com
Slide 30: Sales
Sales Full year 2013 SEK (bln) Full year 2012 29.8 Order backlog, like-for-like - 0.1 FX-translation - 1.4 Acquisitions + 0.8 Subtotal 29.1 Orders “in-for-out” ? Price ? Full year 2013 www.alfalaval.com
Slide 31: Report for Q3 2013
Report for Q3 2013 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 32: Outlook for the fourth quarter
Outlook for the fourth quarter “We expect that demand during the fourth quarter will be on about the same level as in the third.” © Alfa Laval Slide 32 www.alfalaval.com
Slide 33: www.alfalaval.com
© Alfa Laval Slide 33 www.alfalaval.com
Slide 34: Cautionary statement
Cautionary statement This presentation contains forward-looking statements that are based on the current expectations of the management of Alfa Laval Group. Although management believes that the expectations reflected in such forward- looking statements are based on reasonable assumptions, no assura