Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Alfa Laval Corporate — Q4 2023 Earnings Presentation

24 slides from Alfa Laval Ab's earnings presentation, Feb 6, 2024

  1. Slide 1: www.alfalaval.com Classified by Alfa Laval as: Business

    www.alfalaval.com Classified by Alfa Laval as: Business

  2. Slide 2: Report for Q4 2023

    Report for Q4 2023 Tom Erixon President and CEO Alfa Laval Group 06/02/2024 | © Alfa Laval 2 | www.alfalaval.com Classified by Alfa Laval as: Business

  3. Slide 3: Key figures FY 2023

    Key figures − SEK million FY 2023 FY 2022 Tot ∆, Organic ∆, % %* Order intake 70,742 58,645 21 11 Net sales 63,598 52,135 22 12 Adjusted EBITA 10,221 8,229 24 Adjusted EBITA-margin (%) 16.1 15.8 *) Organic growth i.e. excluding currency effects and structural changes. 06/02/2024 | © Alfa Laval 3 | w

  4. Slide 4: Key figures Q4 2023

    Key figures − SEK million Q4 2023 Q4 2022 Tot ∆, Organic ∆, % %* Order intake 16,920 15,767 7 7 Net sales 17,839 16,484 8 7 Adjusted EBITA 2,830 2,520 12 Adjusted EBITA-margin (%) 15.9 15.3 *) Organic growth i.e. excluding currency effects and structural changes. 06/02/2024 | © Alfa Laval 4 | www.al

  5. Slide 5: Energy division

    Energy division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q4 23 Q4 22 Tot ∆, Org ∆, Q3 23 % % • A broad product portfolio geared towards energy and utility efficiency continues to drive good demand. ORDERS 4,662 4,407 5.8 4.8 4,902 • Continued high demand in Gas and Refinery. SAL

  6. Slide 6: Marine division

    Marine division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q4 23 Q4 22 Tot ∆, Org ∆, Q3 23 % % • Contracting levels are on a good level and demand is further supported by sustainability related ORDERS 4,972 5,747 -13.5 -12.2 5,765 solutions. SALES 5,583 4,577 22.0 22.6 4,715 • Con

  7. Slide 7: Food & Water division

    Food & Water division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q4 23 Q4 22 Tot ∆, Org ∆, Q3 23 % % • Continued good demand driven by the project business, including Desmet. ORDERS 7,286 5,613 29.8 28.0 6,365 • The transactional business remained on a lower level, SALES 7,060 7,4

  8. Slide 8: Service orders

    Energy, FY Food&Water, FY Marine, FY Service orders 26% of orders 24% of 33% of orders orders − Order intake, SEK million SEK million SEK million 6 000 25 000 5 000 20 000 4 000 15 000 3 000 10 000 2 000 5 000 1 000 0 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 =

  9. Slide 9: Orders received by region

    Orders received by region − at fixed rates 3%; +1% / +16% Africa & Oceania 8%; Nordic 19%; -2% / +11% North America +6% / +4% +24% / +23% 5%; +6% / +22% Latin America 19%; Western Europe +40% / +49% 5%; Central- & Eastern +25% / +29% Europe* 41%; Asia Share %: Jan – Dec 2023 vs Q4 2022 / YTD 2022 06

  10. Slide 10: Top ten markets

    Top ten markets* − SEK million at prevailing rates United States China Nordic Korea, South South East Asia Mid Europe Adriatic Japan India France 0 2000 4000 6000 8000 10000 12000 14000 = FY 2023 = FY 2022 *Top ten markets order intake development 2022. 06/02/2024 | © Alfa Laval 10 | www.alfalaval.c

  11. Slide 11: Financials

    Financials Fredrik Ekström CFO Alfa Laval Group | © Alfa Laval | www.alfalaval.com

  12. Slide 12: Orders received

    Orders received − SEK million SEK million SEK million 21 000 70 000 18 000 60 000 15 000 50 000 12 000 40 000 +7% 9 000 30 000 6 000 20 000 3 000 10 000 0 0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 = Order intake per quarter “large” = Roll

  13. Slide 13: Order backlog as per December 31

    Order backlog as per December 31 − SEK billion SEK billion 50 45 40 Q4 2023 35 • Order backlog of 45 BSEK 30 • 32.1 BSEK for delivery 2024 25 • 13.2 BSEK for delivery 2025 or later 20 • 22% increase YoY 15 • Current backlog corresponding to 7.8 10 5 months of sales 0 • Q4 book-to-bill of 0.95 Q419 Q

  14. Slide 14: Sales

    Sales − SEK million SEK million SEK million, LTM 18 000 70 000 16 000 60 000 Q4 2023 14 000 50 000 • Sales of 17,839 MSEK (16,484) 40 000 • 8% growth 12 000 • 7% organic growth 30 000 10 000 • 0.1% structure 20 000 • 0.9% currency 8 000 10 000 6 000 0 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q12

  15. Slide 15: Key figures

    Key figures − SEK million Q4 2023 Q4 2022 Sales 17,839 16,484 Gross profit 5,642 5,177 Sales & Admin -2,441 -2,144 R&D -413 -386 Net other cost/income -198 -857 Operating income 2,595 1,814 Financial net -341 -52 Profit before tax 2,254 1,762 Taxes -684 -502 EPS 3.77 3.00 06/02/2024 | © Alfa Laval 1

  16. Slide 16: Adjusted EBITA margin

    Adjusted EBITA margin* − SEK million and in percent of sales SEK million Margin, % Q4 2023 Organic Currency Structure Q4 2022 3 000 19,0 Sales 17,839 1,187 151 16 16,484 18,0 Growth, % 8.2% 7.2% 0.9% 0.1% 2 500 Adj EBITA 2,830 346 -23 -13 2,520 17,0 Adj EBITA, % 15.9% 15.3% 16,0 Dil/Acc 0.9% -0.2% -

  17. Slide 17: Cash-flow statement

    Cash-flow statement − SEK million Q4 2023 Q4 2022 FY 2023 FY 2022 EBITDA 2,820 2,546 11,361 9,016 Working Capital 1,363 -490 -259 -3,891 Taxes paid -292 -394 -1,933 -1,834 Cash flow from operating 3,891 1,662 9,169 3,291 activities Capital expenditures -924 -913 -2,440 -1,853 Free cash flow 2,967 74

  18. Slide 18: Debt position

    Debt position − SEK million Net debt Maturity profile and liquidity buffer • Loans maturing 2024-2029: 13,155 MSEK Q4 2023 Q4 2022 • Weighted maturity 2.8 years. 25% matures within 12 months Debt 13,273 15,062 • Average funding rate on our debt is 1.73% per annum Debt/EBITDA 1.13 1.56 • Interest dur

  19. Slide 19: Reclassification of corporate costs for 2024

    Reclassification of corporate costs for 2024 − Adjusted EBITA, SEK million Group Energy Food & Marine Water • Reclassification of corporate costs Full year 2023, as 10,221 3,986 3,942 2,836 as from January 1, 2024. reported • Costs related to HR, Marketing, 16.1% 20.7% 15.6% 14.9% Legal, Sustainabil

  20. Slide 20: Guidance

    Guidance Q1 2024 FY 2024 FY 2025 CAPEX (cash) Around similar level as Estimated 2 BSEK Estimated 2.5 – 3.0 BSEK previous quarter Currency impact on Estimated transaction and Estimated transaction and EBITA translation impact of translation impact of 92 MSEK 367 MSEK PPA amortization 965 MSEK 710 MSE

  21. Slide 21: Outlook for the first quarter

    Outlook for the first quarter: “We expect demand in the first quarter to be somewhat lower compared to the fourth quarter.” 06/02/2024 | © Alfa Laval 21 | www.alfalaval.com Classified by Alfa Laval as: Business

  22. Slide 22: Q&A

    Q&A 06/02/2024 | © Alfa Laval 22 | www.alfalaval.com Classified by Alfa Laval as: Business

  23. Slide 23: www.alfalaval.com Classified by Alfa Laval as: Business

    www.alfalaval.com Classified by Alfa Laval as: Business

  24. Slide 24: 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

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