Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Q4 2009 Earnings Presentation

41 slides from Alfa Laval Ab's earnings presentation, February 2010

  1. Slide 1: Slide 1

  2. Slide 2: Report for Q4 and full year 2009

    Report for Q4 and full year 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group

  3. Slide 3: Key figures

    Key figures October – December 2009 Orders received dropped 12.2% to SEK 5,427 million. Net sales down 19% at SEK 6,556 million. Adjusted EBITA down 33% at SEK 1,153 million. Adjusted EBITA margin 17.6% - Negative currency effect SEK 140 million. January – December 2009 Orders received dropped 21.6%

  4. Slide 4: Board proposals to the AGM

    Board proposals to the AGM Dividend and share buy- buy-back The Board of Directors proposes a dividend of 2:50 SEK (2:25). (2:25). a mandate for buying back up to 5 percent of the number of outstanding shares. © Alfa Laval Slide 4 www.alfalaval.com

  5. Slide 5: 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 -12% +35% +28% +13% +36% +23% +30% +17% -30% -32% -37% +9% 0% +40% +8% -3% -15% 1 000 4 000 0 0 Q107 Q407 Q206 Q307 Q109 Q405 Q207 Q209 Q408 Q306 Q309 Q406 Q409 Q308

  6. Slide 6: Order analysis

    Order analysis Oct. – Dec. 2009 2008 (SEK millions) 6,181 Structural change, % + 3.1 Currency effects,% - 2.8 Organic development, % - 12.5 Total, % - 12.2 2009 (SEK million) 5,427 © 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 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step u

  8. Slide 8: Report for Q4 and full year 2009

    Report for Q4 and full year 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group

  9. Slide 9: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 480 million (335) Refinery order in Algeria. Order value SEK 60 million. Delivery in 2011. 2011. © Alfa Laval Slide 9 www.alfalaval.com

  10. Slide 10: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 480 million (335) Refinery order in Algeria. Petrochemical order in China. Order value SEK 90 million. Delivery in 2010. © Alfa Laval Slide 10 www.alfalaval.com

  11. Slide 11: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 480 million (335) Refinery order in Algeria. Petrochemical order in China. Nuclear power order in China. Value SEK 130 million. Delivery in 2011. © Alfa Laval Slide 11 www.alfalaval.com

  12. Slide 12: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 480 million (335) Refinery order in Algeria. Petrochemical order in China. Nuclear power order in China. Two cleantech orders for biofuel plants in Vietnam. Value SEK 200 million. Delivery in 2010. © Alfa Laval Slide 12 www.alfalaval.com

  13. Slide 13: Large orders in 2009

    Large orders in 2009 Large orders, total SEK 900 million (1 135) SEK million Country Application Industry Delivery 75 Russia Heat transfer Power 2010 65 India Heat transfer Aluminum 2010 50 US Heat transfer/filtration Enzyme production 2010 55 Brazil Heat recovery Refinery 2011 110 Russia Energy eff

  14. Slide 14: Acquisitions in 2009

    Acquisitions in 2009 Name Country Business Sales 2008 PHE for offshore O&G, marine, nuclear, nuclear, process 750 LHE Co. Ltd South Korea industry and HVAC - channel PHE Brazil PHE service provider - geography 45 HES GmbH Germany Spiral heat exchangers for process industry - 85 channel Onnuri Indust

  15. Slide 15: Report for Q4 and full year 2009

    Report for Q4 and full year 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group

  16. Slide 16: Orders received by customer segment

    Orders received by customer segment Oct – Dec 2009, 2009, at constant rates Life Science − − Comfort & Refrigeration Process Industry + − Marine & Diesel − Fluids & Utility Energy & Environment − OEM − Food − + Sanitary Parts & Service − © Alfa Laval Slide 16 www.alfalaval.com

  17. Slide 17: Orders received by customer segment

    Orders received by customer segment Sequential development 4Q versus 3Q, 3Q, at constant rates Life Science − = Comfort & Refrigeration Process Industry + − Marine & Diesel + Fluids & Utility Energy & Environment + − OEM Food − + 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 Oct – Dec 2009, 2009, at constant rates Good development for Life Science − nuclear power Environment boosted by Process Industry + waste--water applications. waste Process Industry lifted by biofuel projects and refinery Energy & Envir

  19. Slide 19: Orders received by customer segment

    Orders received by customer segment Equipment Division, Oct – Dec 2009, at constant rates Strong development for Sanitary − Comfort & Refrigeration Slight sequential decline due to the development in Marine & Diesel Marine &Diesel and − Comfort & Ref − Fluids & Utility − OEM + Sanitary © Alfa Laval

  20. Slide 20: Orders received by customer segment

    Orders received by customer segment Jan – Dec 2009, 2009, at constant rates Life Science − − Comfort & Refrigeration Process Industry − − Marine & Diesel Energy & Environment − − Fluids & Utility Food − − OEM − Sanitary Parts & Service − © Alfa Laval Slide 20 www.alfalaval.com

  21. Slide 21: Report for Q4 and full year 2009

    Report for Q4 and full year 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group

  22. Slide 22: Orders received by Region

    Orders received by Region Oct – Dec 2009, 2009, at constant rates -22 +9 -18 +2 +3 © Alfa Laval Slide 22 www.alfalaval.com

  23. Slide 23: Orders received by Region

    Orders received by Region Sequential development Q4 versus Q3, at constant rates +13 -23 +11 +12 +11 +2 © Alfa Laval Slide 23 www.alfalaval.com

  24. Slide 24: Highlights Americas

    Highlights Americas Oct – Dec 2009, at constant rates North America Order intake grew from third quarter, driven by good development -18 for Sanitary, Energy & Environment and Process Industry Base business unchanged from 3Q Latin America Order intake was slightly up both on year +3 and sequentially

  25. Slide 25: Highlights Europe

    Highlights Europe Oct – Dec 2009, at constant rates Western Europe incl. Nordic Sequential increase in order intake -22 Base business had a positive +9 development Central and Eastern Europe Orders declined on quarter due to non- non- repeat large projects Comfort & Ref and Sanitary showed good deve

  26. Slide 26: Highlights Asia

    Highlights Asia Oct – Dec 2009, at constant rates Asia Good development in Sanitary, Food and Process Industry High activity level in nuclear power in China Slight decline in the base business sequentially, due to Marine © Alfa Laval Slide 26 www.alfalaval.com

  27. Slide 27: Orders received by Region

    Orders received by Region Jan– Jan– Dec 2009, at constant rates -23 -18 -26 -37 -27 © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Report for Q4 and full year 2009

    Report for Q4 and full year 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Thomas Thuresson CFO Alfa Laval Group

  29. Slide 29: Highlights

    Highlights SEK millions Oct – Dec 2009 Order intake 5,427 Net sales 6,556 © Alfa Laval Slide 29 www.alfalaval.com

  30. Slide 30: Gross profit margin

    Gross profit margin In percent of sales 50 40 40.9 40.2 38.9 38.7 30 20 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 © Alfa Laval Slide 30 www.alfalaval.com

  31. Slide 31: Highlights

    Highlights SEK millions Oct – Dec 2009 Order intake 5,427 Net sales 6,556 Adjusted EBITA 1,153 Adjusted EBITA- EBITA-margin 17.6% Profit before tax 899 © Alfa Laval Slide 31 www.alfalaval.com

  32. Slide 32: Overview cost and capacity adjustment

    Overview cost and capacity adjustment - update as per December 31st, 2009 In SEK million Q4 2009 2009 Target Sales & Administration Research & Development 260 725 > 900 Indirect Personnel in COGS - Full impact from January program achieved in Q4 2009 - Savings from further measures – full impact fro

  33. Slide 33: Earnings per share

    Earnings per share Oct – Dec Jan – Dec 2009 2008 2009 2008 Earnings 1.48 2.03 6.42 8.83 Earnings, excluding step- step-up 1.65 2.15 7.00 9.26 © Alfa Laval Slide 33 www.alfalaval.com

  34. Slide 34: Highlights

    Highlights SEK millions Oct – Dec 2009 Order intake 5,427 Net sales 6,556 Adjusted EBITA 1,153 Adjusted EBITA- EBITA-margin 17.6% Profit before tax 899 Cash flow from operating activities 1,566 ROCE 33.6% ROE 24.5% © Alfa Laval Slide 34 www.alfalaval.com

  35. Slide 35: Cash-flow statement

    Cash--flow statement Cash Jan – Dec Jan – Dec SEK millions 2009 2008 Cash flow from - operating activities 5,347 4,062 - investing activities - 2,620 -1,333 Financial net paid -265 - 292 Dividends -955 - 983 Total 1,507 1,454 Pro Forma Free- Free-cash cash--flow* 4,631 3,023 *Incl. operating activit

  36. Slide 36: Foreign exchange

    Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q4 09 WY 09 WY 10* Translation effect -20 344 -150 Transaction effect -120 - 178 450 Total -140 166 300 *Based on EUR/USD 1.44 and EUR/SEK 10.20 © Alfa Laval Slide 36 www.alfalaval.com

  37. Slide 37: Order backlog as per Dec 31

    Order backlog as per Dec 31 SEK millions 16000 14,730 14,310 14000 3,298 2,668 11,906 12000 2,269 10000 8000 11,432 11,642 9,637 6000 4000 2000 0 2007 2008 2009 For delivery later than 2010 For delivery 2010 © Alfa Laval Slide 37 www.alfalaval.com

  38. Slide 38: Order backlog as per Dec 31

    Order backlog as per Dec 31 SEK millions 14,310 15000 11,906 12500 5,734 10000 4,596 7500 5000 8,576 7,310 2500 0 2008 2009 Other segments Marine © Alfa Laval Slide 38 www.alfalaval.com

  39. Slide 39: Report for Q4 and full year 2009

    Report for Q4 and full year 2009 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group

  40. Slide 40: Outlook for the first quarter

    Outlook for the first quarter “We expect demand during the first quarter 2010 to be on about the same level as during the fourth quarter 2009.” © Alfa Laval Slide 40 www.alfalaval.com

  41. Slide 41: www.alfalaval.com

    © Alfa Laval Slide 41 www.alfalaval.com

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