Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Investor Day (November 2014)
19 slides from Alfa Laval Ab's investor day presentation, Nov 25, 2014
Slide 1: Alfa Laval
Slide 2: Financial update
Financial update Thomas Thuresson CFO Alfa Laval Group
Slide 3: Financial Update
NOVEMBER 25, 2014 FINANCIAL UPDATE Financial www.alfalaval.com
Slide 4: Financial targets
Financial targets Return on capital employed - ROCE Aalborg % 40 35 FRAMO 30 25 20 15 10 5 0 2010 2011 2012 2013 2014 Following the Frank Mohn acquisition the Group target for ROCE is 20% © Alfa Laval Slide 4 www.alfalaval.com
Slide 5: Financial benchmark values
Financial benchmark values From Net Debt / Equity to Net Debt / EBITDA Times 3 2,5 2 1,5 Debt/Equity 1 Debt/EBITDA 0,5 (pro-forma) 0 -0,5 2010 2011 2012 2013 2014 The benchmark value from now on is Net Debt / EBITDA < 2 © Alfa Laval Slide 5 www.alfalaval.com
Slide 6: Savings programme
Savings programme - Communicated in the Q3-report Main elements of the programme: - Cost of goods sold, consolidation of acquired supply-chains - R & D, adjustment to launch capacity - S & A, re-balance to revenue development Timing of realization: - 2014 SEK 50 M - 2015 150 - 2016 100 - Savings ful
Slide 7: Group funding
Group funding - Utilisation and maturity structure, status as per September 30, 2014 SEK Bn 25 Committed, not utilised SEK 4.9 Bn 20 RCF Credits, 80 % outside RCF US PP SEK 15 EIB Maturity of SEK 19 Bn > 4.5 years EMTN, var 10 RCF EIB 5 SEK EMTN, fixed 2015 2017 2019 2021 - Committed and utilized -
Slide 8: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations WY 14 WY 14 WY 15 SEK million Av rates Cl rates Cl rates Translation effect + 60 + 100 90 Transaction effect - 35 - 35 130 Total + 25 + 65 220 Average and closing rates refers to the rates applied as per September 30, 2014 © Al
Slide 9: Gross profit margin
Gross profit margin In percent of sales 45 40 38.3 37.0 36.7 35.3 35 30 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 © Alfa Laval www.alfalaval.com
Slide 10: Gross profit margin
Gross profit margin In percent of sales 50 LTM LTM Quarter Quarter 40 30 Q111 Q311 Q112 Q312 Q113 Q313 Q114 Q314 © Alfa Laval www.alfalaval.com
Slide 11: Gross profit margin
Gross profit margin - Development 1991 – YTD 2014 50% Marine & BRIC Boom Weak SEK 40% Strong SEK 30% Structure -Acquis Asian crisis Marine ”normalis” 20% 10% 0% 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Gross profit margin
Gross profit margin - Evolution over the last 25 years 37 – 43 % 35 - 40 % 35 - 40 % 36 - 39 % Restructuring Demand Structure - Acquisitions Procurement Pricing Strong SEK Product mix Marine ”normalization” Weak SEK Product mix 1990’s 2000 - 2006 2006 - 2010 2011 – 2014 www.alfalaval.com
Slide 13: Step-up values up to 2018
Step-up values up to 2018 - Closing balance and amortization according to plan, SEK million Closing balance Amortization 11 000 1 100 10 000 1 000 9 000 900 8 000 800 7 000 700 6 000 600 5 000 500 4 000 400 3 000 300 2 000 200 1 000 100 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 14: Order backlog development
Order backlog development SEK millions % of LTM-sales 24 000 80 70 20 000 60 16 000 50 12 000 40 30 8 000 20 4 000 10 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Order backlog % of LTM (last twelve months) sales www.alfalaval.com
Slide 15: Order backlog as per Sept 30
Order backlog as per Sept 30 SEK million at prevailing rates 24000 22,400 20000 15,314 15,873 15,068 15,496 15,071 16000 13,364 For next year, 13,192 11,689 SEK 13,4 (8.0) Bn! 12000 8,387 8,766 8,050 7,993 8,330 7,324 5,480 8000 4000 6,256 6,567 5,487 5,937 6,418 6,705 6,672 7,371 0 2007 2008 2009 2
Slide 16: Order backlog as per Sept 30
Order backlog as per Sept 30 - For delivery after December 31 SEK millions at prevailing rates 16000 15,029 14000 12000 Aalborg added SEK 2.0 9,306 9,732 Bn to Marine in 2011 and 10000 9,058 Frank Mohn added SEK 8,650 8,791 8,399 5.7 Bn in 2014! 8000 7,705 6,665 4,099 4,576 5,751 3,508 3,219 3,063 6
Slide 17: Sales
Sales - 2014 and 2015 BnSEK LTM Q314 32.9 Change order backlog Q4, y-o-y - 0.1 Fx. Translation + 0.3 Acquisitions (backlog + in-for-out) + 1.2 Demand & Price Q414 +/- 0.0 Full year 2014 appr 34.3 www.alfalaval.com
Slide 18: Sales
Sales - 2014 and 2015 BnSEK Full year 2014 appr 34.3 Change in order backlog y-o-y + 0.1 Fx. Translation + 0.5 Acquisitions during 2014 + 1.6 Subtotal: 36.5 Price +/- ? Demand +/- ? Further acquisitions + ? Full year 2015: ? www.alfalaval.com
Slide 19: www.alfalaval.com
www.alfalaval.com