Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q1 2015 Earnings Presentation
34 slides from Alfa Laval Ab's earnings presentation, 2015
Slide 1: NOES
NOES
Slide 2: Report for Q1 2015
Report for Q1 2015 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 3: Key figures
Key figures January – March 2015 Orders received rose 32% to SEK 9,844 million. Net sales grew 38% to SEK 9,071 million. Adjusted EBITA increased 48% to SEK 1,570 million. Adjusted EBITA margin 17.3% vs 16.1% - Positive currency effect SEK 148 million. © Alfa Laval Slide 3 www.alfalaval.com
Slide 4: Report for Q4 2014
Report for Q4 2014 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 5: Orders received
Orders received SEK million SEK million R 12 12 000 45000 40000 10 000 35000 8 000 30000 25000 6 000 20000 +38% +21% +19% 4 000 15000 - 5% +5% 10000 2 000 5000 0 0 Q212 Q312 Q412 Q213 Q313 Q413 Q214 Q314 Q414 Q211 Q112 Q113 Q114 Q311 Q411 Q111 Q115 = Order intake per quarter “large” = Rolling twelve
Slide 6: Order analysis
Order analysis Q1 2015 versus Q1 2014 and versus Q4 2014 (MSEK) Q1 2014 7,474 Q4 2014 10,509 Structural change, % + 22.4 - 0.1 Organic development, % - 3.8 - 10.0 Total + 18.6 - 10.1* Currency effects,% + 13.1 + 3.8 Total, % + 31.7 - 6.3 Q1 2015 9,844 Q1 2015 9,844 * Excluding backlog revaluation it
Slide 7: Adjusted EBITA / margin
Adjusted EBITA / margin* SEK millions and in percent of sales 2 000 24,0 1 750 21,0 1 500 18,0 1 250 15,0 1 000 12,0 750 9,0 500 6,0 250 3,0 0 0,0 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step
Slide 8: Report for Q1 2015
Report for Q1 2015 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 9: Highlights in the quarter
Highlights in the quarter Process Technology Marine & Diesel Compact heat exchangers for a heat-recovery Framo pumping systems for two Floating Production application in a U.S. refinery. Storage and Offloading vessels, to be moored outside Value: SEK 80 million the Angolan coast. Value: SEK 260 mill
Slide 10: Report for Q1 2015
Report for Q1 2015 - Key figures - Orders received and margins - Development per segment - Geographical development - Financials - Outlook
Slide 11: Orders received by customer segment
Orders received by customer segment January – March 2015, at constant rates and like for like PTD Service - = Industrial Equipment = Sanitary Equipment Water & Waste + Food & Life Science - = OEM + EQD Service Energy & Process - = Marine & Diesel Eq. MDD Service + + Marine & Offshore Syst. Marine &
Slide 12: Equipment division
Equipment division Highlights and sequential comments Industrial Industrial Equipment saw lower demand in Equipment 8%* HVAC and industrial ref, partly compensated by higher demand from commercial ref and data cooling. = - Sanitary Sanitary saw positive demand from the food, 9% beverage and pers
Slide 13: Marine & Diesel division
Marine & Diesel division Highlights and sequential comments Marine & Diesel M&D Equipment slightly up as increased demand Equipment 8%* for environmental products offset lower demand for equipment for new ships. = + Marine & Offshore saw lower demand for SOx Marine & while marine boilers rose. O
Slide 14: Process Technology division
Process Technology division Highlights and sequential comments Energy & Energy & Process affected by up and Process 13%* midstream customers reining in spending due to lower oil price. Refinery and - - petrochemical customers meanwhile entered Food & Life a wait-and-see mode for new investments. S
Slide 15: Report for Q1 2015
Report for Q1 2015 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 16: Orders received by Region
Orders received by Region January – March 2015, development at constant rates Latin America 5% +38 North America 20% +4 +1 +11 +37 Asia 40% Western Europe 19% -6 Central Nordic 9% & Eastern Europe 5% Year-on-year comparison © Alfa Laval www.alfalaval.com
Slide 17: Highlights Asia
Highlights Asia January – March 2015, at constant rates, sequential comments Asia: China impacted by a somewhat slower business climate. Base business was still unchanged. +37 -10 The Chinese development affected the Asian export economies. Furthermore, lower oil and gas prices caused delays in
Slide 18: Highlights Europe
Highlights Europe January – March 2015, at constant rates, sequential comments +38 +29 +4 -44 +1 -15 Western Europe incl. Nordic: Central and Eastern Europe: Western Europe declined as a Q4 record- Russian customers’ difficulties in size order was not repeated. Base securing financing dampened b
Slide 19: Highlights Americas
Highlights Americas January – March 2015, at constant rates, sequential comments North America: US declined, affected by the non repeat of a large EGC order as well as a decline in OEM. Canada was unchanged. +11 -5 Industrial Equipment, Energy & Process and Water & Waste did well in the quarter.
Slide 20: Top 10 markets
Top 10 markets* SEK million at prevailing rates United States China South Korea Nordic Mid Europe Japan SEA Adriatic Benelux UK 0 1 000 2 000 3 000 4 000 5 000 6 000 = R12M end of March *The development of the 2014 top ten markets. = WY 2014 © Alfa Laval Slide 20 www.alfalaval.com
Slide 21: Report for Q1 2015
Report for Q1 2015 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group
Slide 22: Highlights
Highlights SEK millions January – March 2015 Order intake 9,844 Net sales 9,071 © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: Gross profit margin
Gross profit margin In percent of sales 45 38.5 38.2 39.4 40 36.7 35 30 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 © Alfa Laval www.alfalaval.com
Slide 24: Gross profit margin
Gross profit margin Q1 2015 versus Q1 2014 and versus Q4 2014 Q1 2014 39.4 Q4 2014 34.3 Mix/price -- + Load/volume - = FX ++ + Structure mix - = FX, unrealized = = Q1 2015 36.7 Q1 2015 36.7 © Alfa Laval Slide 24 www.alfalaval.com
Slide 25: Highlights
Highlights SEK millions January – March, 2015 Order intake 9,844 Net sales 9,071 Adjusted EBITA 1,570 Adjusted EBITA-margin 17.3% Profit before tax 1,264 Earnings per share 2.05 Earnings per share, excl step-up 2.50 ROCE 20.5% ROE 18.9% © Alfa Laval Slide 25 www.alfalaval.com
Slide 26: Divisional performance
Divisional performance Equipment Process Technology Marine & Diesel Q1 2015 2014 2015 2014 2015 2014 Orders 2,551 2,275 3,285 3,276 4,008 1,923 Backlog 1,795 1,542 9,188 8,698 13,309 5,093 Sales 2,455 2,206 3,121 2,854 3,495 1,537 Op. profit 284 301 410 506 702 280 Op margin (%) 11.6 13.6 13.1 17.7
Slide 27: Cash-flow statement
Cash-flow statement Q1 Q1 SEK millions 2015 2014 Cash flow from - operating activities 1,101 592 - investing activities - 80 - 141 Financial net paid - 126 97 Total 895 548 Pro Forma Free cash-flow* 894 567 *Incl. operating activities, capital expenditure and financial net paid. © Alfa Laval Slide 2
Slide 28: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q1 15 FY 15 FY 16* Translation effect 103 270 - Transaction effect 45 275 450 Total 148 545 450 *Based on EUR/USD 1.06 and EUR/SEK 9.33 Projected FX-effect for 2015 as communicated in Q4 report: SEK 280 million © Al
Slide 29: Order backlog as per March 31
Order backlog as per March 31 SEK millions 25 000 24,292 8,562 20 000 15,333 15 000 3,519 10 000 11,814 15,730 5 000 book to bill 0 Q111 Q112 Q113 Q114 Q115 For delivery after 2015 For delivery in 2015 © Alfa Laval Slide 29 www.alfalaval.com
Slide 30: Sales
Sales Full year 2015 SEK (bln) Full year 2014 35.1 Order backlog, like-for-like + 1.0 FX-translation + 1.8 Acquisitions + 1.6 Subtotal 39.5 Orders “in-for-out” ? Price ? Full year 2015 www.alfalaval.com
Slide 31: Report for Q1 2015
Report for Q1 2015 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 32: Outlook for the second quarter
Outlook for the second quarter “We expect that demand during the second quarter will be somewhat lower than in the first quarter.” © Alfa Laval Slide 32 www.alfalaval.com
Slide 33: www.alfalaval.com
© Alfa Laval Slide 33 www.alfalaval.com
Slide 34: Cautionary statement
Cautionary statement This presentation contains forward-looking statements that are based on the current expectations of the management of Alfa Laval Group. Although management believes that the expectations reflected in such forward- looking statements are based on reasonable assumptions, no assura