Alfa Laval AB · OMXSTO:ALFA

Alfa Laval AB — Q1 2006 Earnings Presentation

36 slides from Alfa Laval AB's earnings presentation, 2006

  1. Slide 1: www.alfalaval.com

    © Alfa Laval Slide 1 www.alfalaval.com

  2. Slide 2: Interim Report Q1 2006

    Interim Report Q1 2006 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group

  3. Slide 3: Key figures

    Key figures January – March 2006 z Orders received up 28% to SEK 5,481 million z Net sales up 16% to SEK 4,076 million z Adjusted EBITA SEK 525 million (330) - Positive currency effect SEK 30 milllion © Alfa Laval Slide 3 www.alfalaval.com

  4. Slide 4: Orders received

    Orders received % Q on Q SEK million R 12 60 20 000 50 17 500 40 15 000 30 12 500 20 10 000 10 7 500 0 5 000 -10 2 500 Q204 Q305 Q304 Q404 Q303 Q203 Q403 Q104 Q205 Q105 Q405 Q106 = rolling twelve months value © Alfa Laval = % development compared withSlide the4same quarter the year before www.alfala

  5. Slide 5: Order analysis

    Order analysis SEK million Jan – Mar 06 2004 4,004 Structural change, % +2 Currency,% +9 Organic development, % + 26 Total, % + 37 2005 5,481 © Alfa Laval Slide 5 www.alfalaval.com

  6. Slide 6: Adjusted EBITA / margin

    Adjusted EBITA / margin * SEK million and in percent of sales 700 14,0 600 12,0 500 10,0 400 8,0 300 6,0 200 4,0 100 2,0 0 0,0 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and compar

  7. Slide 7: Interim Report Q1 2006

    Interim Report Q1 2006 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group

  8. Slide 8: Highlights

    Highlights January – March 2006 z Acquisition of Tranter completed. © Alfa Laval Slide 8 www.alfalaval.com

  9. Slide 9: Highlights

    Highlights January – March 2006 z Acquisition of Tranter completed. z Order for 13 processing lines, SEK 110 million. - Used for refining and modification of seed oils and tropical oils by a company Ukraine. Delivery in 2006 and 2007. © Alfa Laval Slide 9 www.alfalaval.com

  10. Slide 10: Highlights

    Highlights January – March 2006 z Acquisition of Tranter completed. z Order for 13 processing lines, SEK 110 million. z Order from a major paper mill in India, SEK 65 million. - Capacity 340 tons water evaporation per hour. Delivery in 2007. © Alfa Laval Slide 10 www.alfalaval.com

  11. Slide 11: Highlights

    Highlights January – March 2006 z Acquisition of Tranter completed. z Order for 13 processing lines, SEK 110 million. z Order from a major paper mill in India, SEK 65 million. z Order for petrochemical plant in Belgium, SEK 45 million. - Customers: BASF and Dow Chemical. Delivery in 2007. © Alfa Lav

  12. Slide 12: Highlights

    Highlights January – March 2006 z Acquisition of Tranter completed. z Order for 13 processing lines, SEK 110 million. z Order from a major paper mill in India, SEK 65 million. z Order for petrochemical plant in Belgium, SEK 45 million. z Alfdex-agreement with Daimler-Chrysler. © Alfa Laval Slide 12

  13. Slide 13: Interim Report Q1 2006

    Interim Report Q1 2006 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group

  14. Slide 14: Orders received by Segment

    Orders received by Segment January – March 2006, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel + Fluids & Utility Life Science + + OEM Process Industry + + Sanitary Energy & Environment + Food + © Alfa Laval Slide 14 www.alfalaval.com

  15. Slide 15: Orders received by Segment: Equipment Division

    Orders received by Segment Equipment Division, January – March 2006, at constant rates + Comfort & Refrigeration z Good recovery in the food markets + Marine & Diesel z Increased investments in the HVAC market, + Fluids & Utility especially in the + OEM Middle East z The marine shipyards + Sanitary

  16. Slide 16: Orders received by Segment: Process Technology Division

    Orders received by Segment Process Technology Division, January – March 2006, at constant rates z Strong growth in Food, rapid increase in Life Science + vegetable oil z Continued investments Process Industry + - oil- and gas related industry - fuel ethanol Energy & Environment + Food + © Alfa Laval

  17. Slide 17: Tranter

    Tranter Acquisition completed z Estimated full year sales 2006: USD 125 million. z Consolidated from March 1, 2006. z Anticipated procurement synergies confirmed. z Continue as an independent market channel. z Offer its own product range under the Tranter brand through its own distribution network.

  18. Slide 18: Interim Report Q1 2006

    Interim Report Q1 2006 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group

  19. Slide 19: Orders received by Region

    Orders received by Region January – March 2006, at constant rates Other 2 % L. A No rdi me c +19 rica 11% 5% +20 +35 +81 +20 Asia 29 % Western Europe 28 % 18 % Cent -3 ica r. & E mer a st 7 th A Nor % © Alfa Laval Slide 19 www.alfalaval.com

  20. Slide 20: Highlights Americas

    Highlights Americas January – March 2006, at constant rates North America z Strong development of base business +20 z Fuel ethanol very strong Latin America z Fewer large contracts z Moderate growth in base business z Parts & Service developed well -3 © Alfa Laval Slide 20 www.alfalaval.com

  21. Slide 21: Highlights Europe

    Highlights Europe January – March 2006, at constant rates Western Europe incl. Nordic z All segments and regions +19 above last year z Best development in Germany, +35 +81 Italy and the Nordic region Central and Eastern Europe z Continued very good investment climate z Russia, Ukraine and Turkey ver

  22. Slide 22: Highlights Asia

    Highlights Asia January – March 2006, at constant rates Asia z Strongest development in Process Industry, Energy & Environment and Comfort & Refrigeration +20 z Best growth in India and Korea © Alfa Laval Slide 22 www.alfalaval.com

  23. Slide 23: Interim Report Q1 2006

    Interim Report Q1 2006 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group

  24. Slide 24: Highlights

    Highlights SEK million Jan – Mar 06 Order intake 5,481 Net sales 4,076 Adjusted EBITA 525 Adjusted EBITA-margin 12.9% © Alfa Laval Slide 24 www.alfalaval.com

  25. Slide 25: Adjusted EBITA

    Adjusted EBITA SEK million Jan – Mar 2005 330 2006 525 Deviation 195 FX. translation 46 FX. transaction -16 Deviation excl FX 165 © Alfa Laval Slide 25 www.alfalaval.com

  26. Slide 26: Gross profit margin

    Gross profit margin In percent of sales 50 38.9 40 40.0 39.0 37.0 30 20 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 © Alfa Laval Slide 26 www.alfalaval.com

  27. Slide 27: Highlights

    Highlights SEK million Jan – Mar 06 Order intake 5,481 Net sales 4,076 Adjusted EBITA 525 Adjusted EBITA-margin 12.9% Profit before tax 426 © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Earnings per share

    Earnings per share Q1 2006 Q1 2005 Earnings 2.90 0.49 Earnings excluding 3.40 0.93 goodwill and step-up © Alfa Laval Slide 28 www.alfalaval.com

  29. Slide 29: Highlights

    Highlights SEK million Jan – Mar 06 Order intake 5,481 Net sales 4,076 Adjusted EBITA 525 Adjusted EBITA-margin 12.9% Profit before tax 426 Cash flow from operating activities 392 ROCE 24.5% Excl. step-up and goodwill appr. 62.5% © Alfa Laval Slide 29 www.alfalaval.com

  30. Slide 30: Cash-flow statement

    Cash-flow statement MSEK Q1 2006 Q1 2005 Cash flows from - operating activities 392 17 - investing activities - 1,285 - 483 Financial net paid 11 2 Total - 882 - 464 Pro Forma Free-cash-flow* 339 - 40 *Incl. operating activities, capital expenditure (excl. product rights), provisions and financial n

  31. Slide 31: Foreign exchange

    Foreign exchange Estimated impact on adjusted EBITA from Fx. fluctuations SEK million Q1 2006 WY 06* WY 07* Translation effect + 46 + 55 0 Transaction effect - 16 + 40 + 55 Total + 30 + 95 + 55 *Based on EUR/USD 1.20 and EUR/SEK 9.30 © Alfa Laval Slide 31 www.alfalaval.com

  32. Slide 32: Order backlog as per March 31

    Order backlog as per March 31 For delivery in the current year SEK million 7000 6000 5000 4000 3000 4,840 5,837 6,700 2000 1000 0 2004 2005 2006 © Alfa Laval Slide 32 www.alfalaval.com

  33. Slide 33: Gross profit margin

    Gross profit margin In percent of sales 50 Seasonality! 40 38.9 40.0 39.0 37.0 30 20 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 © Alfa Laval Slide 33 www.alfalaval.com

  34. Slide 34: Interim Report Q1 2006

    Interim Report Q1 2006 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group

  35. Slide 35: Outlook for the near future

    Outlook for the near future “In most of the markets, geographical as well as customer segments, that Alfa Laval serves a continued very strong demand is expected.” © Alfa Laval Slide 35 www.alfalaval.com

  36. Slide 36: www.alfalaval.com

    © Alfa Laval Slide 36 www.alfalaval.com

Alfa Laval — Q1 2006 Earnings Presentation on 6ix