Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Investor Day (November 2015)

21 slides from Alfa Laval Ab's investor day presentation, Nov 24, 2015

  1. Slide 1: ENE

    ENE

  2. Slide 2: Capital Markets Day 2015

    Capital Markets Day 2015 Lars Renström President and CEO Alfa Laval Group www.alfalaval.com

  3. Slide 3: Capital Markets Day 2015

    Capital Markets Day 2015 November 24, in Copenhagen 10:30 Business update and Q&A Lars Renström and Thomas Thuresson Lunch 11:30 12:30 Innovative technologies and dynamic markets: - Food in USA (John Atanasio) - Food in China (Jan Debruyn) - Innovation (Alex Syed and Jan Ackalin) 15:20 Divisional hi

  4. Slide 4: Food Energy Environment

    Energy Food Environment www.alfalaval.com

  5. Slide 5: Growth opportunities

    Growth opportunities  Service  Energy – both marine and land-based gas  Increased living standard – food, beverages, pharma  Environment – water and industrial waste www.alfalaval.com

  6. Slide 6: Service =

    Service = Service Parts operations www.alfalaval.com

  7. Slide 7: Service growth

    Service growth - Development before and after 2013 Before After 2008-2012 CAGR 2013-2015Q3 CAGR Total + 2.6% + 7.9% Parts + 1.0% + 7.2% Service operations + 5.3% + 9.5% © Alfa Laval Slide 6 www.alfalaval.com

  8. Slide 8: Importance of Service: Orders received

    Importance of Service - Stability in orders received over the business cycle Orders received Americas 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 © Alfa Laval Slide 7 www.alfalaval.com

  9. Slide 9: Alfa Laval China

    Alfa Laval China* Order intake 2014 ‘14/’13 LTM Q3-2015 / LTM Q3-2014 Total 11% contraction – Marine contracting 5%-10% 437 M EUR 0%-5% >10% <0% 5%-10% slowed down. Investments in Waste 0%-5% Water, Brewery, Dairy as well as investments in second and third tier cities remained strong. Excluding Mari

  10. Slide 10: Yard contracting and deliveries

    Yard contracting and deliveries - October 2015, including all ships above 2,000 Dwt/Gt 6 000 5 000 Number of vessels 4 000 3 000 2 000 1 000 959 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 No of ships contracted No of ships delivered Actual Contracted YTD Source

  11. Slide 11: Shipmix

    Shipmix - 2014 vs. estimated 2015, number of vessels Alfa Laval Other** “sweet spot”* Other** 622 687 340 Alfa Laval “sweet spot”* 599 Bulk carriers Bulk carriers 270 768 2014 = 2,077 vessels E 2015 = 1,213 vessels *) Alfa Laval “sweet spot”: Crude tankers, Products & chemical tankers, Gas carriers

  12. Slide 12: Marine growth areas

    Marine growth areas - Orders received in MEUR 200 CAGR 44.1% 180 160 140 120 New fuels 100 Energy 80 Environmental 60 40 20 0 2011 2012 2013 2014 LTM 2015-09 © Alfa Laval Slide 11 www.alfalaval.com

  13. Slide 13: Framo update

    Framo update  Framo exceeds our expectations  Integration according to plan and will deliver synergies of 120 MNOK p.a. by 2017  Amortization of loans 6 months ahead of plan – quickly deleveraging www.alfalaval.com

  14. Slide 14: Framo development

    Framo development - Orders received LTM Q315; 578 M€ Service; 104 Oil recovery; 5 Off-shore pumping; 89 Marine cargo pumping; 380 www.alfalaval.com

  15. Slide 15: Alfa Laval USA

    Alfa Laval USA* Order intake 2014 LTM Q3-2015 / LTM Q3-2014 Total 11% contraction – Oil & Gas 5%-10% 595 M EUR 0%-5% >10% <0% 5%-10% contracting, Food growing along with 0%-5% general industrial sectors including renewed activity in BioTech. Excluding Oil & Gas Stable – The overall business climate

  16. Slide 16: Activity split O&G, total

    Activity split O&G, total - Distribution of orders Q3 2015 (MSEK) Drilling Processing & Refinery Petrochemicals Transportation Grand total Process 53 339 170 385 947 (+20%**) Technology Marine & 0 0 Diesel 190 230 420 (-22%**) Alfa Laval = 243 = 569 = 170 = 385 =1,367* (+3%**) Share of total Alfa La

  17. Slide 17: Food and pharma

    Food and pharma - Increased living standard, MSEK fixed rates 28% Americas Europe Asia, Pacific & Africa Total Q315: MSEK 2 470 776 704 990 Q315 vs. Q215: +6% + 4% -10% +25% Q315 vs. Q314: +10% +14% -12% +29% www.alfalaval.com

  18. Slide 18: Acquired growth, 2011-2015

    Acquired growth, 2011-2015 In total CAGR in sales By strategy 12 companies = M€ 970* +6.3% in sales Product Channel *) At the time of the acquisition © Alfa Laval Slide 17 www.alfalaval.com

  19. Slide 19: Acquisition focus

    Acquisition focus Equipment Division USA Three key + + technologies © Alfa Laval Slide 18 www.alfalaval.com

  20. Slide 20: In conclusion…

    In conclusion…  Prospects of Service and good backlog in Marine gives resilience.  Expect to enjoy a continued good shipmix 2015.  Alfa Laval in Q315: Christina Lindskog <christina.lindskog@kunskapspartner.se> - Hydrocarbon chain = 16% - Food and pharma = 28%  Acquisition capacity = 5 BSEK © Alf

  21. Slide 21: www.alfalaval.com

    © Alfa Laval Slide 20 www.alfalaval.com

Alfa Laval — Investor Day (November 2015) on 6ix