Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Investor Day (November 2015)

17 slides from Alfa Laval Ab's investor day presentation, November 2015

  1. Slide 1: ENE

    ENE

  2. Slide 2: Financial update

    Financial update Thomas Thuresson CFO Alfa Laval Group

  3. Slide 3: Development of R&D spend

    Development of R&D spend SEK million Percent of sales 900 3,6 800 3,2 700 2,8 600 2,4 500 2 400 1,6 300 1,2 200 0,8 100 0,4 0 0 2005 2007 2009 2011 2013 2015 R&D spend R&D as percent of sales www.alfalaval.com

  4. Slide 4: Capital expenditure

    Capital expenditure SEK million Percent of sales 900 4,5 800 4 700 3,5 600 3 500 2,5 400 2 300 1,5 200 1 100 0,5 0 0 2003 2005 2007 2009 2011 2013 2015 2017 Cap ex Depr acc to plan (excl step-up) Percent of sales www.alfalaval.com

  5. Slide 5: Guidance

    Guidance - A summary  R & D-spend in relation to total revenues, 2.0 – 2.5 (>= 2.5) %  Taxes in the P&L, 28 % of PBT  Capital expenditure in relation to total revenues, <= 2.0 %, + projects 2016 - 2017  Dividend pay-out ratio, 40 – 50 % of adjusted EPS* *) Excluding net effect of step-up amortis

  6. Slide 6: Gross profit margin

    Gross profit margin In percent of sales 45 40 37.0 36.7 35.3 35.2 35 30 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 © Alfa Laval www.alfalaval.com

  7. Slide 7: Gross profit margin

    Gross profit margin - Q3 2015 vs Q2 2015 Q2 2015: 36.3 Mix/price = Load/volume -- FX -- Structure = Q3 2015: 35.2 © Alfa Laval Slide 7 www.alfalaval.com

  8. Slide 8: Foreign exchange

    Foreign exchange - Estimated impact on adjusted EBITA from FX fluctuations SEK million Q3 15 9M 15 FY 15 FY 16* Translation effect 45 260 290 20 Transaction effect 95 210 300 475 Revaluation in w/c -100 -100 -80 80 Total 40 370 510 575 *) Transaction based on EUR/USD 1.07 and EUR/SEK 9.30 Translatio

  9. Slide 9: Cost structure of products

    Cost structure of products - Insight to assess possible effect of volume variations Sales revenue Gross profit, appr 36 % Contribution 50 % COGS Other overhead, > 15 % Indirect personnel, appr 7 % Direct personnel, appr 8 % Direct materials, other variable & subcontract, < 70 % www.alfalaval.com

  10. Slide 10: Step-up values up to 2019

    Step-up values up to 2019 - Closing balance and amortization according to plan, SEK million Closing balance Amortization 12 000 1 200 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 2

  11. Slide 11: Order backlog development

    Order backlog development SEK millions % of LTM-sales 24 000 80 21 000 70 18 000 60 15 000 50 12 000 40 9 000 30 6 000 20 3 000 10 0 0 2001 2003 2005 2007 2009 2011 2013 2015 Order backlog % of LTM (last twelve months) sales www.alfalaval.com

  12. Slide 12: Order backlog as per Sept 30

    Order backlog as per Sept 30 - For delivery after December 31, MSEK at prevailing rates 16000 15,029 14,103 14000 12000 9,306 9,732 10000 9,058 8,650 8,791 8,940 8,399 7,705 8000 6,665 4,099 4,576 5,751 3,508 3,219 3,063 6000 2,327 3,655 2,155 4000 3,553 1,733 2000 1,820 4,338 4,959 4,730 4,050 3,59

  13. Slide 13: Order backlog as per Sept 30

    Order backlog as per Sept 30 - SEK million at prevailing rates 24000 22,400 22,117 20000 15,873 15,496 16000 15,314 15,068 15,071 13,364 13,359 For next year, 13,192 11,689 SEK 13,4 (13.4) Bn, 12000 8,766 8,050 8,387 7,993 ”like-for-like” 8,330 7,324 5,480 SEK - 1.1 Bn! 8000 4000 6,256 6,567 5,487 5

  14. Slide 14: Sales

    Sales - 2014 and 2015 BnSEK LTM Q315 39.7 Change order backlog Q4, y-o-y + 0.6 Fx. Translation -/+ 0.x Acquisitions + 0.0 Demand, in-for-out Q415 - 0.x Full year 2015 appr 39.4* *) SME.Direkt, concensus estimate as per November 12, 2015 www.alfalaval.com

  15. Slide 15: Sales

    Sales - 2015 and 2016 BnSEK Full year 2015 appr 39.4* Change in order backlog y-o-y - Fx. Translation + 0.1 Acquisitions during 2015 + 0.0 Subtotal: 39.5 Price +/- ? Demand +/- ? Further acquisitions + ? Full year 2016: ? *) SME.Direkt, concensus estimate as per November 12, 2015 www.alfalaval.com

  16. Slide 16: Cash generation

    Cash generation - Over the last decade + SEK million Percent of sales 6000 30 5000 25 4000 20 3000 15 2000 10 1000 5 0 0 2002 2004 2006 2008 2010 2012 2014 Free cash-flow’ Free cash-flow*, % of sales *) Free cash-flow defined as; cash-flow before acquisitions, divestments and dividends www.alfalaval

  17. Slide 17: www.alfalaval.com

    www.alfalaval.com

Alfa Laval — Investor Day (November 2015) on 6ix