Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q4 2010 Earnings Presentation
46 slides from Alfa Laval Ab's earnings presentation, February 2011
Slide 1: NOE
NOE
Slide 2: Report for Q4 2010
Report for Q4 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 3: Key figures
Key figures October – December 2010 Orders received rose 18% to SEK 6,379 million. Net sales increased 9% to SEK 7,169 million. Adjusted EBITA up 16% at SEK 1,337 million. Adjusted EBITA margin 18.6% vs 17.6% - Positive currency effect SEK 32 million. January – December 2010 Orders receive
Slide 4: Board proposals to the AGM
Board proposals to the AGM Dividend and share buy-back The Board of Directors proposes a dividend of 3:00 SEK (2:50). a mandate for buying back up to 5 percent of the number of outstanding shares. © Alfa Laval Slide 4 www.alfalaval.com
Slide 5: Revised growth target
Revised growth target At least 8% average sales growth per year, over a business cycle. © Alfa Laval Slide 5 www.alfalaval.com
Slide 6: Orders received
Orders received SEK million SEK million R 12 8 000 32 000 7 000 28 000 6 000 24 000 5 000 20 000 4 000 16 000 3 000 12 000 2 000 8 000 -9% +25% +23% +23% -3% -30% +8% -32% -37% -15% 0% +9% +13% +36% +40% +30% -6% 1 000 4 000 0 0 Q108 Q407 Q208 Q408 Q410 Q307 Q308 Q207 Q209 Q309 Q406 Q409 Q210 Q310 Q
Slide 7: Order analysis
Order analysis Oct – Dec 2010 2009 (SEK millions) 5,427 Structural change, % + 3.4 Currency effects,% - 5.6 Organic development, % + 19.7 Total, % + 17.5 2010 (SEK million) 6,379 © Alfa Laval Slide 7 www.alfalaval.com
Slide 8: 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 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step u
Slide 9: Interim Report Q4 2010
Interim Report Q4 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 10: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 310 million (480) Carbon capture order in the US. Order for Alfa Laval Packinox heat exchangers worth SEK 80 million. Delivery will be finalized in 2012. © Alfa Laval Slide 10 www.alfalaval.com
Slide 11: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 310 million (480) Carbon capture order in the US. Refinery order in India. Order for Alfa Laval Packinox heat exchangers worth SEK 110 million. Delivery will be finalized in 2011. © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 310 million (480) Carbon capture order in the US. Refinery order in India. Refinery order in India. Order for Alfa Laval Packinox heat exchangers worth SEK 50 million. Delivery in 2011. © Alfa Laval Slide 12 www.alfalaval.com
Slide 13: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 310 million (480) Carbon capture order in the US. Refinery order in India. Refinery order in India. Energy-efficiency order in Russia. Order for compact heat exchangers to be used in a refinery. Order value SEK 70 million. Delivery in 201
Slide 14: Large orders in 2010
Large orders in 2010 Large orders, total SEK 1 000 million (900) SEK million Country Application Industry Delivery 80 US Carbon capture Power 2012 110 India Heat transfer Refinery 2011 50 India Heat transfer Refinery 2011 70 Russia Heat transfer Refinery 2011 250 US Environmental Waste water plant 2
Slide 15: Highlights during the quarter: Acquisitions
Highlights during the quarter Acquisitions Definox – a French fluid handling company. Designs and manufactures stainless steel valves and equipment for the food processing, pharmaceutical and cosmetic industries. Definox had annual sales of about SEK 200 million and some 120 employees. © Alfa Lava
Slide 16: Highlights during the quarter: Acquisitions
Highlights during the quarter Acquisitions Definox – a French fluid handling company. Olmi – an Italian producer of heat exchangers. Designs and manufactures shell & tube heat exchangers and air coolers for niche applications, with high pressure and high temperatures, in the petrochemical, power
Slide 17: Highlights during the quarter: Acquisitions
Highlights during the quarter Acquisitions Definox – a French fluid handling company. Olmi – an Italian producer of heat exchangers. Aalborg Industries – Danish supplier of equipment and solutions to marine, offshore and power markets. Agreement signed to acquire the company, whose offering in
Slide 18: Aalborg Industries
Aalborg Industries Agreement signed for acquisition Manufacturing and engineering presence in key markets such as China, Vietnam and Brazil with a global service network enabling quick turnaround services Well positioned for structural growth based on attractive underlying trends such as globali
Slide 19: Excellent fit
Excellent fit Sanitary Industrial Eqt. OEM Marine & Food Energy & Life Process Parts & Diesel Environment Science Industry Service Alfa Laval Key Technologies Heat Transfer Alfa Laval’s offering in heat transfer is further strengthened www.alfalaval.com
Slide 20: Acquisitions in 2010
Acquisitions in 2010 Name Country Business Sales Champ US Engine-cooling solutions 100 Service provider US Provider of service for plate heat exchangers 100 Si Fang China 65% of leading supplier of sanitary products 150 Hygienic equipment for the global fruit-juice concentrate Astepo Italy industry
Slide 21: Interim report Q4 2010
Interim report Q4 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 22: Orders received by customer segment
Orders received by customer segment Oct – Dec 2010, at constant rates Life Science + + Industrial Equipment Process Industry + + Marine & Diesel Energy & Environment − + OEM Food + + Sanitary Parts & Service + © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: Orders received by customer segment
Orders received by customer segment Process Technology Division Oct – Dec 2010, at constant rates Life Science + Process Industry + Energy & Environment − Food + Demand for vegetable oil Parts & Service + lifted Food. Significant demand for parts. Base business boosted Process Industry. Slide
Slide 24: Orders received by customer segment
Orders received by customer segment Equipment Division, Oct – Dec 2010, at constant rates Sanitary up on good activity in food and pharma sectors. + Industrial Equipment OEM saw good demand for brazed heat exchangers for air conditioners, heat pumps and boilers. + Marine & Diesel Marine improv
Slide 25: Orders received by customer segment
Orders received by customer segment January – December 2010, at constant rates Life Science + + Industrial Equipment Process Industry − Energy & Environment + + Marine & Diesel Food + + OEM + Sanitary Parts & Service + © Alfa Laval Slide 25 www.alfalaval.com
Slide 26: Interim Report Q4 2010
Interim Report Q4 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 27: Orders received by Region
Orders received by Region Oct – Dec 2010, at constant rates +10 +62 +37 +26 Asia 33 % = © Alfa Laval Slide 27 www.alfalaval.com
Slide 28: Highlights Americas
Highlights Americas Oct – Dec 2010, at constant rates North America All segments grew except +37 Process Industry. Base business rose significantly. Latin America Order intake was unchanged. = Base business grew, but negative impact from non-repeat large orders. © Alfa Laval Slide 28 www.alf
Slide 29: Highlights Europe
Highlights Europe Oct – Dec 2010, at constant rates +10 +62 Western Europe incl. Nordic Generally positive development, except in France. Base business did very well in Nordic and Mid Europe. Central and Eastern Europe Very strong quarter, with growth across the line. Russia and Turkey did p
Slide 30: Highlights Asia
Highlights Asia Oct – Dec 2010, at constant rates Asia Good development, especially in India, Korea and China. All EQD segments performed well. Process Industry and Energy & Environment affected by non-repeats. © Alfa Laval Slide 30 www.alfalaval.com
Slide 31: Orders received by Region
Orders received by Region January – December 2010, at constant rates +9 +14 +36 +18 Asia 32 % +14 © Alfa Laval Slide 31 www.alfalaval.com
Slide 32: Interim Report Q4 2010
Interim Report Q4 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Thomas Thuresson CFO Alfa Laval Group
Slide 33: Highlights
Highlights SEK millions Oct – Dec 2010 Order intake 6,379 Net sales 7,169 © Alfa Laval Slide 33 www.alfalaval.com
Slide 34: Gross profit margin
Gross profit margin In percent of sales 50 40.2 39.3 40 40.9 38.7 30 20 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 © Alfa Laval www.alfalaval.com
Slide 35: Gross Profit Margin
Gross Profit Margin - analysis year-on-year In percent Q4 2009 3 Actual 38.7 - Foreign exchange, transaction + 0.8 - Changes in price & mix + 0.7 Sub.total: 40.2 -Procurement (neg) -Productivity (pos) -Margin in order backlog (neg) -Volume (pos) Actual for Q4 2010: 39.3 © Alfa Laval Slide 35 www.alf
Slide 36: Highlights
Highlights SEK millions Oct – Dec 2010 Order intake 6,379 Net sales 7,169 Adjusted EBITA 1,337 Adjusted EBITA-margin 18.6% Profit before tax 1,273 © Alfa Laval Slide 36 www.alfalaval.com
Slide 37: Earnings per share
Earnings per share Oct - Dec Jan - Dec 2010 2009 2010 2009 Earnings 2.14 1.48 7.34 6.42 Earnings, excluding step-up 2.32 1.65 8.02 7.00 © Alfa Laval Slide 37 www.alfalaval.com
Slide 38: Highlights
Highlights SEK millions Oct – Dec 2010 Order intake 6,379 Net sales 7,169 Adjusted EBITA 1,337 Adjusted EBITA-margin 18.6% Profit before tax 1,273 Cash flow from operating activities 1,081 ROCE 37.4% ROE 24.4% © Alfa Laval Slide 38 www.alfalaval.com
Slide 39: Cash-flow statement
Cash-flow statement Jan – Dec Jan – Dec SEK millions 2010 2009 Cash flow from - operating activities 4,098 5,347 - investing activities - 1,417 -2,620 Financial net paid - 84 - 265 Dividends - 1,064 - 955 Total 1,533 1,087 Pro Forma Free cash-flow* 3,585 3,324 *Incl. operating activities, capital ex
Slide 40: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q4 10 WY 10 WY 11* Translation effect -24 - 95 -130 Transaction effect +56 +451 -180 Total +32 +356 -310 *Based on EUR/USD 1.33 and EUR/SEK 8.95 © Alfa Laval Slide 40 www.alfalaval.com
Slide 41: Order backlog as per Dec 31
Order backlog as per Dec 31 SEK millions 16000 14,310 14000 2,668 11,906 12000 11,552 2,269 1,979 10000 11,642 8000 9,637 9,573 6000 4000 2000 0 2008 2009 2010 For delivery later than 2011 For delivery in 2011 © Alfa Laval Slide 41 www.alfalaval.com
Slide 42: Sales
Sales Full year 2011 SEK (bln) Full year 2010 24.7 FX-translation - 1.1 Subtotal 23.6 Orders “in-for-out” ? Price ? Acquisitions (incl Olmi) + 0.4 Aalborg (9 months as 2010) + 2.3 Full year 2011 www.alfalaval.com
Slide 43: Acquisition of Aalborg Industries
Acquisition of Aalborg Industries Funding and indebtedness, pro-forma Funding, assuming no net debt in Aalborg EIB loan, 7 years SEK 1.15 Bln Bridge loan, 12 months 2.50 Senior Facility 1.35 5.00 Indebtedness, pro-forma, based on 2010 accounts Net debt SEK 4.5 Bln Net Debt/Equity 0.35 EBITDA 5.7 Net
Slide 44: Interim Report Q4 2010
Interim Report Q4 2010 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 45: Outlook for the first quarter
Outlook for the first quarter “We expect demand in the first quarter to be on about the same level as in the fourth quarter.” © Alfa Laval Slide 45 www.alfalaval.com
Slide 46: www.alfalaval.com
© Alfa Laval Slide 46 www.alfalaval.com