Alfa Laval AB · OMXSTO:ALFA

Alfa Laval AB — Q1 2009 Earnings Presentation

38 slides from Alfa Laval AB's earnings presentation, 2009

  1. Slide 1: Slide 1

  2. Slide 2: Report for Q1 2009

    Report for Q1 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  3. Slide 3: Key figures

    Key figures January – March 2009 Orders received dropped 31.6% to SEK 5,853 million. Net sales down 4.8% at SEK 6,923 million. Adjusted EBITA down 11% at SEK 1,255 million. - Positive currency effect SEK 124 million. © Alfa Laval Slide 3 www.alfalaval.com

  4. Slide 4: 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 +35% +36% +30% 0% +13% -32% +9% +28% +40% +17% +8% -3% -15% 1 000 4 000 0 0 Q107 Q408 Q307 Q106 Q206 Q207 Q308 Q109 Q306 Q406 Q407 Q108 Q208 = rolling twelve months

  5. Slide 5: Order analysis

    Order analysis January – March 2009 2008 (SEK millions) 7,433 Structural change, % + 2.2 Currency effects,% +10.3 Organic development, % -33.8 Total, % - 21.3 2009 (SEK million) 5,853 © Alfa Laval Slide 5 www.alfalaval.com

  6. Slide 6: Organic development

    Organic development % 7 000 Marine Marine cancellations orders -64% Orders - 1.2% 6 000 other - 9% segments -27% - 23.6% 5 000 4 000 Q1 08 Q1 09 © Alfa Laval Slide 6 www.alfalaval.com

  7. Slide 7: 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 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step s

  8. Slide 8: Interim Report Q1 2009

    Interim Report Q1 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  9. Slide 9: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 140 million (390) Heat exchanger order from Russian power plant. Order value SEK 75 million. Delivery in 2010. © Alfa Laval Slide 9 www.alfalaval.com

  10. Slide 10: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 140 million (390) Heat exchanger order from Russian power plant. Heat exchanger order from Indian aluminum industry. Order value SEK 65 million. Final delivery in 2010. © Alfa Laval Slide 10 www.alfalaval.com

  11. Slide 11: Highlights during the quarter

    Highlights during the quarter Acquisitions Two acquisitions expand aftermarket business. Both companies are major providers of parts and service for a variety of products, applications and geographical areas. Combined sales of about SEK 300 million in 2008. © Alfa Laval Slide 11 www.alfalaval.com

  12. Slide 12: Highlights during the quarter

    Highlights during the quarter Acquisitions Two acquisitions expand aftermarket business. Onnuri - South Korean system-builder. Onnuri is a system-provider to the shipbuilding and diesel power markets. The company had sales of about SEK 150 million in 2008. © Alfa Laval Slide 12 www.alfalaval.com

  13. Slide 13: Highlights during the quarter

    Highlights during the quarter Acquisitions Two acquisitions expand aftermarket business. Onnuri - South Korean system-builder. HES GmbH Heat Exchanger Systems. German provider of spiral heat exchangers, mainly to the process industry. Sales of about SEK 85 million in 2008. © Alfa Laval Slide 13 www.

  14. Slide 14: Highlights during the quarter

    Highlights during the quarter Acquisitions Two acquisitions expand aftermarket business. Onnuri - South Korean system-builder. HES GmbH Heat Exchanger Systems. Two acquisitions extend Tranter’s presence. Local companies in Poland and Mexico with combined sales of about SEK 50 million expand Tranter’

  15. Slide 15: Highlights during the quarter

    Highlights during the quarter Acquisitions Two acquisitions expand aftermarket business. Onnuri - South Korean system-builder. HES GmbH Heat Exchanger Systems. Two acquisitions extend Tranter’s presence. Approximately 12 percent of Alfa Laval India Ltd. Alfa Laval AB increased its share in the India

  16. Slide 16: Interim Report Q1 2009

    Interim Report Q1 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  17. Slide 17: Orders received by customer segment

    Orders received by customer segment January – March 2009, at constant rates Life Science − − Comfort & Refrigeration Process Industry − − Marine & Diesel Energy & Environment − − Fluids & Utility Food − − OEM − Sanitary Parts & Service − © Alfa Laval Slide 17 www.alfalaval.com

  18. Slide 18: Orders received by customer segment

    Orders received by customer segment Process Technology Division January – March 2009, at constant rates Life Science − Process Industry − Energy & Environment − Food − Environment reported growth. Lower project activity affected Food and Process Industry. © Alfa Laval Slide 18 www.alfalaval.com

  19. Slide 19: Orders received by customer segment

    Orders received by customer segment Equipment Division, January – March 2009, at constant rates Largest drop in Marine due − Comfort & to continued decline in Refrigeration market activity. − Marine & Diesel Good level of activity in market for diesel power. − Fluids & Utility − OEM − Sanitary © Alf

  20. Slide 20: Growth in capital sales represents opportunities for Parts & Service

    Growth in capital sales represents opportunities for Parts & Service Growth in capital sales (fixed rates) 175 Sales growth 150 aftermarket- intensive areas: 125 +166% 100 Sales growth Alfa Laval +90% 75 50 25 0 Q207 Q407 Q408 Q403 Q204 Q404 Q205 Q405 Q206 Q406 Q208 © Alfa Laval Slide 20 www.alfalav

  21. Slide 21: Interim Report Q1 2009

    Interim Report Q1 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  22. Slide 22: Orders received by Region

    Orders received by Region January – March 2009, at constant rates % eri ca 5 No rth -16 Am L. Am eric -29 Oth -22 -22 er 2 a % 17 -45 % 31 % Asia pe 27 % o rn Eur Ce ste We -42 ntr Nordic 10 .& Ea st %8 % © Alfa Laval Slide 22 www.alfalaval.com

  23. Slide 23: Highlights Americas

    Highlights Americas January – March 2009, at constant rates North America -22 Unchanged order intake for Equipment, Process Technology orders very weak. Latin America Major decline in the region due to lower order intake in Brazil. -42 Refinery did well in Chile, Mexico and Ecuador. © Alfa Laval Sli

  24. Slide 24: Highlights Europe

    Highlights Europe January – March 2009, at constant rates -16 Western Europe incl. Nordic -29 Negative development for all -22 segments except Energy & Environment. Sequential decline of 10 percent. Central and Eastern Europe Overall weak development in most markets. © Alfa Laval Slide 24 www.alfala

  25. Slide 25: Highlights Asia

    Highlights Asia January – March 2009, at constant rates -45 Asia General decline in most markets - India bucked the trend. Sequential decline of 2 percent. © Alfa Laval Slide 25 www.alfalaval.com

  26. Slide 26: Interim Report Q1 2009

    Interim Report Q1 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group

  27. Slide 27: Highlights

    Highlights SEK millions Jan – March 2009 Order intake 5,853 Net sales 6,923 © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Gross profit margin

    Gross profit margin In percent of sales 50 40 42.9 38.9 38.9 38.5 30 20 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 © Alfa Laval Slide 28 www.alfalaval.com

  29. Slide 29: Highlights

    Highlights SEK millions Jan – March 2009 Order intake 5,853 Net sales 6,923 Adjusted EBITA 1,255 Adjusted EBITA-margin 18.1% Profit before tax 1,114 © Alfa Laval Slide 29 www.alfalaval.com

  30. Slide 30: Status report on January's work-force reduction program

    Status report on January’s work- force reduction program • Program running as planned. Year on year reduction in S&A and R&D of 7% and 5% respectively. • 323 had left the company by end of March. • In addition work sharing utilized in the Netherlands and Italy and a number of contract labor has been

  31. Slide 31: Earnings per share

    Earnings per share Jan – March 2009 2008 Earnings 1.80 2.06 Earnings, excluding step-up 1.93 2.19 © Alfa Laval Slide 31 www.alfalaval.com

  32. Slide 32: Highlights

    Highlights SEK millions January – March 2009 Order intake 5,853 Net sales 6,923 Adjusted EBITA 1,255 Adjusted EBITA-margin 18.1% Profit before tax 1,114 Cash flow from operating activities 1,058 ROCE 64.3% ROE 50.3% © Alfa Laval Slide 32 www.alfalaval.com

  33. Slide 33: Cash-flow statement

    Cash-flow statement Q1 Q1 SEK millions 2009 2008 Cash flow from - operating activities 1058 729 - investing activities - 1205 -134 Financial net paid -133 16 Total -280 611 Pro Forma Free-cash-flow* 835 651 *Incl. operating activities, capital expenditure and financial net paid. © Alfa Laval Slide 3

  34. Slide 34: Foreign exchange

    Foreign exchange Estimated impact on adjusted EBITA from Fx. fluctuations SEK million Q1 09 WY 09 WY 10* Translation effect 145 465 0 Transaction effect - 21 10 500 Total 124 475 500 *Based on EUR/USD 1. 32 and EUR/SEK 10.80 © Alfa Laval Slide 34 www.alfalaval.com

  35. Slide 35: Order backlog as per March 31

    Order backlog as per March 31 SEK millions 18000 15,543 15,414 16000 13,831 5,725 14000 5,246 5,051 12000 10000 8000 6000 4000 2000 8,780 9,818 10,168 0 2007 2008 2009 For delivery next year or later For delivery during rest of current year © Alfa Laval Slide 35 www.alfalaval.com

  36. Slide 36: Interim Report Q1 2009

    Interim Report Q1 2009 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  37. Slide 37: Outlook for the second quarter

    Outlook for the second quarter “We expect demand during the second quarter to be in line with, or somewhat lower than, the first quarter 2009.” © Alfa Laval Slide 37 www.alfalaval.com

  38. Slide 38: www.alfalaval.com

    © Alfa Laval Slide 38 www.alfalaval.com

Alfa Laval — Q1 2009 Earnings Presentation on 6ix