Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Q3 2022 Earnings Presentation

24 slides from Alfa Laval Ab's earnings presentation, Oct 25, 2022

  1. Slide 1: www.alfalaval.com Classified by Alfa Laval as: Business

    www.alfalaval.com Classified by Alfa Laval as: Business

  2. Slide 2: Report for Q3 2022

    Tom Erixon Report for Q3 2022 President and CEO Alfa Laval Group 25/10/2022 | © Alfa Laval 2 | www.alfalaval.com Classified by Alfa Laval as: Business

  3. Slide 3: Key figures

    Key figures − MSEK Q3 2022 Q3 2021 Tot ∆, Organic ∆, % %* Order intake 15,202 11,680 30 13 Net sales 13,184 10,275 28 11 Adjusted EBITA 1,934 1,854 3 Adjusted EBITA-margin (%) 14.7 18.0 *) Organic growth i.e. excluding currency effects and structural changes. 25/10/2022 | © Alfa Laval 3 | www.alfala

  4. Slide 4: Food & Water division

    Food & Water division − Highlights and comments, MSEK MARKETS & ORDER INTAKE Q3 22 Q3 21 Tot ∆, Org ∆, Q2 22 % % • Continued strong demand. ORDERS 5,611 4,241 32.3 5.2 5,033 • Higher invoicing due to somewhat improved supply chains. SALES 5,402 3,678 46.9 17.4 4,140 • Strong growth in Service. EBIT

  5. Slide 5: Energy division

    Energy division − Highlights and comments, MSEK MARKETS & ORDER INTAKE Q3 22 Q3 21 Tot ∆, Org ∆, Q2 22 % % • Strong order intake. ORDERS 4,583 3,659 25.3 14.3 4,496 • Growth mainly driven by continued investments in energy efficiency initiatives. SALES 3,726 3,146 18.4 7.9 3,639 • Demand increased f

  6. Slide 6: Marine division

    Marine division − Highlights and comments, MSEK MARKETS & ORDER INTAKE Q3 22 Q3 21 Tot ∆, Org ∆, Q2 22 % % • Good order growth in most product areas despite somewhat weak contracting market. ORDERS 5,008 3,780 32.5 21.6 4,892 • Orders recovered in Marine cargo pumping SALES 4,056 3,451 17.5 8.4 4,07

  7. Slide 7: Service orders

    Energy, Q3 Food&Water, Q3 Marine, Q3 Service orders 24% of orders 25% of 32% of orders orders − Order intake, SEK million 4 500 18 000 4 000 16 000 3 500 14 000 3 000 12 000 2 500 10 000 +20% 2 000 8 000 1 500 6 000 1 000 4 000 500 2 000 0 0 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q22

  8. Slide 8: Orders received by region

    Orders received by region − at fixed rates 2%; +20% / +34% Africa & Oceania 8%; Nordic -9% / -2% 20%; +9% / +22% North America +14% / +13% 4%; +30% / +17% Latin America 21%; Western Europe +8% / +3% 5%; Central- & Eastern +23% / +21% Europe 40%; Asia Share %: Jan – Sep 2022 vs Q3 / YTD 2021 25/10/20

  9. Slide 9: Orders received

    Orders received − Sek million 16 000 60 000 54 000 14 000 48 000 12 000 42 000 10 000 36 000 8 000 30 000 +35% +31% +30% 24 000 -17% 6 000 -6% 18 000 4 000 12 000 2 000 6 000 0 0 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 = Order intake per quarter “large” =

  10. Slide 10: Report for Q3 2022

    Report for Q3 2022 Jan Allde CFO Alfa Laval Group | © Alfa Laval | www.alfalaval.com

  11. Slide 11: Sales

    Sales − MSEK SEK million SEK million R 12 54 000 14 000 13,184 48 000 12 000 42 000 10 000 36 000 8 000 30 000 24 000 6 000 +24% +19% +28% -19% +6% 18 000 4 000 12 000 2 000 6 000 0 0 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 = Sales per qu

  12. Slide 12: Adjusted gross margin

    Adjusted gross margin − In SEK and percent of sales SEK million Percent of sales 5 000 45 4 500 4 000 40 3 500 37.3 3 000 2 500 35 35.6 36.1 2 000 34.3 1 500 30 1 000 500 0 25 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Gross Profit Adjusted gross margin 25/10/2022 | © Alfa Lava

  13. Slide 13: S&A Expense development

    S&A Expense development − MSEK Q3 2022 Q3 2021 Tot ∆, % YTD 2022 YTD 2021 Tot ∆, % Sales costs 1,531 1,159 32.1% 4,081 3,288 24.1% Admin costs 513 442 16.1% 1,714 1,382 24.0% Total S&A costs 2,044 1,601 27.7% 5,795 4,670 24.1% Excl. FX impacts and 12.6% 11.6% acq./divestments 25/10/2022 | © Alfa Lav

  14. Slide 14: Adjusted EBITA/margin

    Adjusted EBITA/margin* − SEK millions and in percent of sales SEK million Percent of sales 2 500 20,0 2 250 17.8 19,0 17.6 18.0 14.7 2 000 18,0 1 750 17,0 1 500 16,0 1 250 15,0 1 000 14,0 750 13,0 500 12,0 250 11,0 0 10,0 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 * Adjusted EB

  15. Slide 15: Key figures

    Key figures − MSEK Q3 2022 Q3 2021 Sales 13,184 10,275 Gross profit 4,274 3,636 Sales & Admin -2,044 -1,601 R&D -329 -251 Net other cost/income -215 -155 Operating income 1,686 1,655 Financial net -105 -88 Profit before tax 1,581 1,567 Taxes -356 -341 EPS 2.92 2.91 25/10/2022 | © Alfa Laval 15 | www

  16. Slide 16: Operating Working Capital (OWC)

    Operating Working Capital (OWC)* − SEK million, fixed rate Alfa Laval Group, OWC (MSEK) 14 000 30% 12 000 25% 10 000 20% 8 000 15% 6 000 10% 4 000 5% 2 000 *) Operating Working Capital = Sum of Account receivables; Total inventory; Account payable; and 0 0% Advance payments. Q318 Q418 Q119 Q219 Q319

  17. Slide 17: Cash-flow statement

    Cash-flow statement − MSEK Q3 2022 Q3 2021 YTD 2022 YTD 2021 EBITDA 2,400 2,158 4,705 4,339 Working Capital -1,260 -592 -3,401 -828 Taxes paid -470 -97 -1,440 -1,281 Cash flow from operating 670 1,469 1,629 3,853 activities Capital expenditures -355 -317 -940 -755 Disposals -1 6 16 32 Acquisitions -

  18. Slide 18: Foreign exchange

    Foreign exchange − Estimated impact on adjusted EBITA from FX fluctuations, MSEK Q3 2022 FY 2022 FY 2023* Transaction effect -25 -50 520 Translation effect 145 400 - Total 120 350 520 Note: Excludes FX effects caused by revaluation of balance items in foreign currency *) Based on EUR/USD 0,9919 and

  19. Slide 19: Order backlog as per September 30

    Order backlog as per September 30 − SEK billion 45 40 37.7 35 30 25 22.9 25.8 20.7 20 14.8 15 13.0 10 11.9 8.1 5 7.7 0 1,14 1.00 1.25 1.22 1.15 book to bill Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 = For delivery during current year = For delivery next yea

  20. Slide 20: Sales FY 2022

    Sales − FY 2022, SEK billion YTD 2022 35.6 Backlog for delivery in 2022 11.9 Subtotal 47.5 For you to consider: Price “In-for-out”* FX translation Acquisitions FY 2022 *IFO in Q4 2021 was SEK 3.6 bn. 25/10/2022 | © Alfa Laval 20 | www.alfalaval.com Classified by Alfa Laval as: Business

  21. Slide 21: Outlook for the fourth quarter

    Outlook for the fourth quarter: “We expect demand in the fourth quarter to be on about the same level compared to the third quarter.” 25/10/2022 | © Alfa Laval 21 | www.alfalaval.com Classified by Alfa Laval as: Business

  22. Slide 22: www.alfalaval.com Classified by Alfa Laval as: Business

    www.alfalaval.com Classified by Alfa Laval as: Business

  23. Slide 23: 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

  24. Slide 24: www.alfalaval.com Classified by Alfa Laval as: Business

    www.alfalaval.com Classified by Alfa Laval as: Business

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