Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q4 2012 Earnings Presentation
40 slides from Alfa Laval Ab's earnings presentation, 2013
Slide 1: Alfa Laval
Slide 2: Report for Q4 2012
Report for Q4 2012 - 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 October – December 2012 Orders received rose 7% to SEK 7,252 million. Net sales unchanged at SEK 8,119 million. Adjusted EBITA declined 5% to SEK 1,316 million. Adjusted EBITA margin 16.2% vs 17.0% - Negative currency effect SEK 63 million. January – December 2012 Orders received rose 6%
Slide 4: Board proposal to the AGM
Board proposal to the AGM Dividend and share buyback The Board of directors proposes • A dividend of 3.50 SEK (3.25) • A mandate to buy back up to 5 percent of the number of outstanding shares © Alfa Laval Slide 4 www.alfalaval.com
Slide 5: Report for Q4 2012
Report for Q4 2012 - Key figures -Orders received and margins -Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 6: Orders received
Orders received SEK million SEK million R 12 9 000 32 000 8 000 28 000 7 000 24 000 6 000 20 000 5 000 16 000 4 000 12 000 3 000 8 000 2 000 +11% +9% -15% +23% -9% 1 000 4 000 0 Q111 0 Q408 Q209 Q310 Q211 Q112 Q212 Q312 Q109 Q309 Q409 Q110 Q210 Q410 Q412 Q311 Q411 = Order intake per quarter “large”
Slide 7: Order analysis
Order analysis Q4 2012 versus Q4 2011 and versus Q3 2012 (MSEK) Q4 2011 6,774 Q3 2012 7,288 Structural change, % + 1.8 + 0.2 Organic development, % + 8.9 - 1.4 Total + 10.7 - 1.2 Currency effects,% - 3.6 + 0.7 Total, % + 7.1 - 0.5 Q4 2012 7,252 Q4 2012 7,252 © 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 12,0 675 9,0 450 6,0 225 3,0 0 0,0 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and st
Slide 9: Report for Q4 2012
Report for Q4 2012 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 10: Large orders in 2012
Large orders in 2012 By focus area Food SEK 215 million Environment Energy SEK 745 million SEK >1 540 million Total SEK >2 500 million (>1 400) www.alfalaval.com
Slide 11: Large orders in 2012
Large orders in 2012 By geographical area, total SEK >2 500 million (>1 400) 300 MSEK 380 MSEK 430 MSEK >1 010 MSEK >165 MSEK 215 MSEK © Alfa Laval www.alfalaval.com
Slide 12: Acquisitions in 2012
Acquisitions in 2012 VORTEX ASHBROOK GAMAJET ACE Mixing and blending Belt filter presses for Tank cleaning Air-cooled heat solutions for the the dewatering of machines for the exchangers for natural oil and gas industry. municipal & industrial industrial and sanitary gas and other energy waste water
Slide 13: Acquisition widens offering
Acquisition widens offering High activity level in the gas market Sales: Approximately SEK 350 million in 2012 Profitability: Well above the average for the Alfa Laval Group Slide 13 www.alfalaval.com
Slide 14: Report for Q4 2012
Report for Q4 2012 - Key figures - Orders received and margins - Development per segment - Geographical development - Financials - Outlook
Slide 15: Orders received by customer segment
Orders received by customer segment Oct. – Dec. 2012, at constant rates and like for like PTD Parts & Service = = Industrial Equipment - OEM Process Industry + + Sanitary Equipment + EQD Parts & Service Energy & Environment + + Marine & Offshore Systems - Marine & Diesel Food Technology + Equipment
Slide 16: Equipment division
Equipment division Highlights and sequential comments Sanitary Sanitary rose with good demand for products 12%* targeting all applications. Industrial Equipment declined, partly due to ++ seasonality in HVAC, partly because of a non- non-repeat Industrial large district- district-heating order in th
Slide 17: Process Technology division
Process Technology division Highlights and sequential comments Food Tech. Food grew, supported by the base business and a 8%* strong recovery for vegetable oil projects in Asia. Energy & Environment declined as there were fewer ++ large O&G contracts. Environment saw strong Energy & Environ Environ.
Slide 18: Marine & Diesel division
Marine & Diesel division Highlights and sequential comments Marine & Diesel Equipment Marine & Diesel Equipment declined due to weaker 6%* demand for land- land-based diesel power. The base business showed a slight increase. - - Marine & Marine & Offshore Systems declined, reflecting the Offshore Sy
Slide 19: Marine & Diesel Division
Marine & Diesel Division Distribution of orders YTD Ship building & Marine Driver Offshore environment Diesel power Parts & Service Share 41% 40% 6% 13% © Alfa Laval Slide 19 www.alfalaval.com
Slide 20: Orders received by customer segment
Orders received by customer segment January – December 2012, at constant rates and like for like PTD Parts & Service = = Industrial Equipment - OEM Process Industry + + Sanitary Equipment + EQD Parts & Service Energy & Environment + Marine & Offshore * Systems Food Technology - - Marine & Diesel Equ
Slide 21: Report for Q4 2012
Report for Q4 2012 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook
Slide 22: Orders received by Region
Orders received by Region Oct. – Dec. 2012, development at constant rates Latin America 6% +6 North America 19% -34 +25 +16 +13 Asia 32% Western Europe 24% +5 Central and Eastern Europe 6% Nordic 10% Year--on- Year on-year comparison © Alfa Laval www.alfalaval.com
Slide 23: Highlights Asia
Highlights Asia Oct. – Dec. 2012, at constant rates, sequential comments Asia: Process Industry, Food Technology and OEM were performing the best. China affected by wait- wait-and- and-see mode among +13 +6 customers while India, South East Asia and the Middle East delivered growth. Year--on- Year o
Slide 24: Highlights Europe
Highlights Europe Oct. – Dec. 2012, at constant rates, sequential comments +6 +12 -34 -37 +25 +12 Western Europe incl. Nordic: Central and Eastern Europe: Favourable development for Weak development in the quarter, due large orders, base business and to fewer big orders being booked in Parts & Servi
Slide 25: Highlights Americas
Highlights Americas Oct. – Dec. 2012, at constant rates, sequential comments North America: Continued growth in the U.S., while Canada declined due to fewer large projects. The base business grew. +16 -2 Sanitary, Food Technology as well as Parts & Service had a positive development. Latin America:
Slide 26: Top 10 markets
Top 10 markets* SEK million at prevailing rates United States China Nordic Korea, South Mid Europe South East Asia Adriatic Russia Brazil India 0 1 000 2 000 3 000 4 000 5 000 = WY 2012 *The development of the 2011 top ten markets. = WY 2011 © Alfa Laval Slide 26 www.alfalaval.com
Slide 27: Orders received by Region
Orders received by Region January – December 2012, development at constant rates Latin America 7% +9 North America 19% +12 +7 +12 -1 Asia 32% Western Europe 22% +9 Central and Eastern Nordic 9% Europe 9% Year--on- Year on-year comparison © Alfa Laval www.alfalaval.com
Slide 28: Report for Q4 2012
Report for Q4 2012 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group
Slide 29: Highlights
Highlights SEK millions Oct. – Dec. 2012 Order intake 7,252 Net sales 8,119 © Alfa Laval Slide 29 www.alfalaval.com
Slide 30: Gross profit margin
Gross profit margin In percent of sales 50 39.3 38.7 37.8 37.0 40 30 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 © Alfa Laval www.alfalaval.com
Slide 31: Highlights
Highlights SEK millions Oct . – Dec. 2012 Order intake 7,252 Net sales 8,119 Adjusted EBITA 1,316 Adjusted EBITA- EBITA-margin 16.2% Profit before tax 1,189 Earnings per share 2.13 Earnings per share, excl step- step-up 2.30 ROCE 26.1% ROE 21.6% © Alfa Laval Slide 31 www.alfalaval.com
Slide 32: Cash-flow statement
Cash--flow statement Cash Jan – Dec Jan – Dec SEK millions 2012 2011 Cash flow from - operating activities 3,586 3,429 - investing activities - 3,260 - 5,497 Financial net paid - 51 105 Dividend -1,363 -1,258 Total - 1,088 - 3,221 Pro Forma Free cash cash--flow flow** 3,004 2,979 Q4 Pro Forma Free c
Slide 33: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q4 12 FY 12 FY 13* Translation effect - 32 -1 - 120 Transaction effect - 31 -138 - 20 Total - 63 - 139 - 140 *Based on EUR/USD 1.33 and EUR/SEK 8.60 Projected FX- FX-effect for 2012 as communicated with the Q3 repor
Slide 34: Order backlog as per Dec. 31
Order backlog as per Dec. 31 SEK millions 14,468 16 000 13,736 14 000 2,899 2,446 12 000 10 000 8 000 11,290 11,569 6 000 4 000 1.01 1.03 1.16 0.89 0.83 2 000 Book to bill 0 Q408 Q409 Q410 Q411 Q412 For delivery later than 2013 For delivery in 2013 © Alfa Laval Slide 34 www.alfalaval.com
Slide 35: Order intake level
Order intake level - last four quarters SEK million 8 500 8 500 8 000 8 000 7 500 7 500 7 000 7 000 6 500 6 500 6 000 6 000 5 500 5 500 5 000 5 000 4 500 4 500 4 000 4 000 Q112 Q212 Q312 Q412 = OI/quarter “large” = OI/quarter Newly acquired ACE expected to add SEK 100 mln/Qmln/Q going forward Advers
Slide 36: Sales
Sales Full year 2013 SEK (bln (bln)) Full year 2012 29.8 Order backlog, like- like-for- for-like - 0.1 FX- FX-translation - 0.6 Acquisitions + 0.7 Subtotal 29.8 Orders “in- “in-for- for-out” ? Price ? Full year 2013 www.alfalaval.com
Slide 37: Report for Q4 2012
Report for Q4 2012 - Key figures - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 38: Outlook for the first quarter
Outlook for the first quarter “We expect that demand during the first quarter 2013 will be on about the same level as in the fourth quarter.” © Alfa Laval Slide 38 www.alfalaval.com
Slide 39: www.alfalaval.com
© Alfa Laval Slide 39 www.alfalaval.com
Slide 40: 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