Alfa Laval AB · OMXSTO:ALFA

Alfa Laval AB — Q2 2021 Earnings Presentation

23 slides from Alfa Laval AB's earnings presentation, Jul 20, 2021

  1. Slide 1: www.alfalaval.com

    www.alfalaval.com

  2. Slide 2: Report for Q2 2021

    Tom Erixon President and CEO Report for Q2 2021 Alfa Laval Group 20/07/2021 | © Alfa Laval 2 | www.alfalaval.com

  3. Slide 3: Key figures

    Key figures − MSEK Q2 2021 Q2 2020 Tot ∆, Organic ∆, % %* Order intake 12,183 9,749 25 33 Net sales 9,975 10,455 -5 2 Adjusted EBITA** 1,738 1,802 -4 Adjusted EBITA-margin (%) 17.4 17.2 *) Organic growth i.e. excluding currency effects and structural changes. **) Positive currency effect SEK 20 mill

  4. Slide 4: Food & Water division

    Food & Water division − Highlights and comments, MSEK MARKETS & ORDER INTAKE Q2 21 Q2 20 Tot ∆, Org ∆, Q1 21 % % • Record high order intake. ORDERS 4,554 3,396 34.1 45.4 3,612 • Demand strong across most areas in the division. SALES 3,458 3,241 6.7 15.5 3,118 • Larger CAPEX projects booked, especial

  5. Slide 5: Energy division

    Energy division − Highlights and comments, MSEK MARKETS & ORDER INTAKE Q2 21 Q2 20 Tot ∆, Org ∆, Q1 21 % % • Record high order intake in HVAC. ORDERS 3,553 3,279 8.4 16.3 3,197 • Higher project activity in the Power and Process industries. SALES 3,123 2,979 4.8 12.4 3,039 • Service returned to growt

  6. Slide 6: Marine division

    Marine division − Highlights and comments, MSEK MARKETS & ORDER INTAKE Q2 21 Q2 20 Tot ∆, Org ∆, Q1 21 % % • Yard contracting continued to improve. ORDERS 4,076 3,074 32.6 35.8 5,068 • The sustainability toolbox was strengthened by StormGeo, Oceanbird and MPS. SALES 3,394 4,235 -19.9 -16.8 4,433 • S

  7. Slide 7: Service, by division

    Service, by division − Order intake Q2, share and development ENERGY FOOD & WATER MARINE Q2’21: 25% Q2’21: 26% Q2’21: 29% Organic growth Organic growth Organic growth + + + YoY YoY YoY = Service share of total order intake 20/07/2021 | © Alfa Laval 8 | www.alfalaval.com

  8. Slide 8: Orders received by region

    Orders received by region − Development Q2 2021 vs Q2 2020, at fixed rates 2%; -5% / -18% Africa & Oceania 7%; Nordic +37% / +26% 18%; +28% / +16% North America +45% / +19% 4%; +38% / +11% Latin America 22%; Western Europe +63% / +24% 7%; Central- & Eastern +31% / +22% Europe 40%; Asia Share %: Jan

  9. Slide 9: Report for Q2 2021

    Report for Q2 2021 Jan Allde CFO Alfa Laval Group | © Alfa Laval | www.alfalaval.com

  10. Slide 10: Sales

    Sales − MSEK SEK million SEK million R 12 14 000 49 000 12 000 42 000 9,975 10 000 35 000 8 000 28 000 6 000 21 000 +18% +8% -8% -1% -5% 4 000 14 000 2 000 7 000 0 0 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 = Sales per quarter = Rolling 12

  11. Slide 11: Adjusted gross margin

    Adjusted gross margin − In percent of sales 45 Q2 2020 35.4 Mix/price + 40 Load/volume + 35.4 35.9 38.2 35.4 PPV/metals - FX + 35 Structure = Q2 2021 38.2 30 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 20/07/2021 | © Alfa Laval 14 | www.alfalaval.com

  12. Slide 12: S&A Expense development

    S&A Expense development − MSEK Q2 2021 Q2 2020 Tot ∆, % YTD 2021 YTD 2020 Tot ∆, % Sales costs 1,110 1,002 10.8% 2,129 2,159 -1.4% Admin costs 504 446 13.0% 940 959 -2.0% Total S&A costs 1,614 1,448 11.5% 3,069 3,118 -1.6% Excl. FX impacts and 14.9% 3.7% acq./divestments 20/07/2021 | © Alfa Laval 15

  13. Slide 13: Adjusted EBITA/margin

    Adjusted EBITA/margin* − SEK millions and in percent of sales SEK million %t of sales 2 500 20,0 2 250 19,0 2 000 16.5 17.4 18,0 16.2 17.2 1 750 17,0 1 500 16,0 1 250 15,0 1 000 14,0 750 13,0 500 12,0 250 11,0 0 10,0 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 * Adjusted EBITA –

  14. Slide 14: Key figures

    Key figures − MSEK Q2 2021 Q2 2020 Sales 9,975 10,455 Gross profit 3,616 3,483 Sales & Admin -1,614 -1,488 R&D -286 -251 Net other cost/income -390 -211 Operating income 1,344 1,580 Financial net -113 -166 Profit before tax 1,231 1,414 Taxes -246 -359 EPS 2.32 2.49 20/07/2021 | © Alfa Laval 17 | www

  15. Slide 15: Cash-flow statement

    Cash-flow statement − MSEK Q2 2021 Q2 2020 YTD 2021 YTD 2020 EBITDA 2,006 2,091 3,804 4,099 Working Capital -193 1,012 -236 557 Taxes paid -392 -259 -1,184 -853 Cash flow from operating 1,421 2,844 2,384 3,803 activities Capital expenditures -172 -192 -438 -399 Disposals 1 -1 26 131 Acquisitions -3,

  16. Slide 16: Foreign exchange

    Foreign exchange − Estimated impact on adjusted EBITA from FX fluctuations, MSEK Q2 2021 FY 2021 FY 2022* Transaction effect 30 80 -205 Translation effect -60 -130 - Total -30 -50 -205 Note: Excludes FX effects caused by revaluation of balance items in foreign currency. *) Based on EUR/USD 1.193 and

  17. Slide 17: Order backlog as per June 30

    Order backlog as per June 30 − SEK billion 24.5 25 21.9 21.5 11.0 20 9.8 9.4 15 12.1 10 13.5 12.0 5 0 0,93 0.92 0.87 1.14 1.22 book to bill Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 = For delivery during the current year = For delivery next year or later 20

  18. Slide 18: Sales FY 2021

    Sales − FY 2021, SEK billion YTD Sales 18.9 Backlog, for delivery current year 12.0 Subtotal 30.9 For you to consider: Price “In-for-out”* FX translation Acquisitions Full year 2021 *IFO in Q3-Q4 2020 excluding acquisitions/divestments was SEK 8.3 bln. 20/07/2021 | © Alfa Laval 21 | www.alfalaval.co

  19. Slide 19: Outlook for the third quarter

    Outlook for the third quarter: “We expect demand in the third quarter to be somewhat lower compared to the second quarter.” 20/07/2021 | © Alfa Laval 22 | www.alfalaval.com

  20. Slide 20: www.alfalaval.com

    www.alfalaval.com

  21. Slide 21: Organic growth pace

    Organic growth pace − Compared with same quarter last year (%), excluding currency effects 30 20 10 0 (10) (20) (30) Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 = Order intake growth 20/07/2021 | © Alfa Laval 24 | www.alfalaval.com

  22. Slide 22: 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

  23. Slide 23: www.alfalaval.com

    www.alfalaval.com

Alfa Laval — Q2 2021 Earnings Presentation on 6ix