Alfa Laval AB · OMXSTO:ALFA
Alfa Laval AB — Q3 2007 Earnings Presentation
42 slides from Alfa Laval AB's earnings presentation, 2007
Slide 1: Alfa Laval
Slide 2: Interim Report Q3 2007
Interim Report Q3 2007 - 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 July – September 2007 z Orders received up 30% to SEK 7,150 million. z Net sales up 36% to SEK 6,385 million. z Adjusted EBITA up 76% SEK 1,340 million. - Negative currency effect SEK 55 million. January – September 2007 z Orders received up 26% to SEK 20,977 million. z Net sales up 33%
Slide 4: Orders received
Orders received SEK million SEK million R 12 8 000 32 000 7 000 28 000 6 000 24 000 5 000 20 000 4 000 16 000 3 000 12 000 2 000 8 000 +30% Q107 +36% + 5% Q405 +23% Q206 +35% Q207 +13% Q404 + 5% Q106 +28% Q304 +15% Q306 +17% Q406 +40% Q205 + 9% Q305 +25% 1 000 4 000 0 0 Q307 Q105 = rolling twelve mo
Slide 5: Order analysis
Order analysis Jul – Sep 07 2006 (SEK million) 5,648 Structural change, % + 1 Currency effects,% - 3 Organic development, % + 29 Total, % + 27 2007 (SEK million) 7,150 © Alfa Laval Slide 5 www.alfalaval.com
Slide 6: Adjusted EBITA / margin
Adjusted EBITA / margin * SEK million and in percent of sales 1 400 21,0 1 200 18,0 1 000 15,0 800 12,0 600 9,0 400 6,0 200 3,0 0 0,0 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and
Slide 7: Interim Report Q3 2007
Interim Report Q3 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 8: Financial Targets
Financial Targets Growth > 5% V EBITA-margin 15% ROCE > 25% © Alfa Laval Slide 8 www.alfalaval.com
Slide 9: Highlights during the quarter
Highlights during the quarter Acquisitions z American AGC Engineering, turnover SEK 70 million. Provides plate heat exchanger service and equipment to the dairy and food processing industries. Strengthens the position in the sanitary market in the USA. 65 employees. © Alfa Laval Slide 9 www.alfalava
Slide 10: Highlights during the quarter
Highlights during the quarter Legislation drives development of clean technologies z Breakthrough order for ballast water treatment system. The market for ballast water treatment is expected to be a SEK billion market. Alfa Laval aims to take the leading position through a joint venture with Walleni
Slide 11: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 360 million (125) z Equipment for production of nutritional supplements with Omega-3. Two orders for SEK 70 and 65 million. Delivery during 2008. © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Highlights during the quarter
Highlights during the quarter Large orders z Equipment for production of Omega-3. z Clean technology to Indian paper mill. Total value SEK 60 million. Delivery during 2008. © Alfa Laval Slide 12 www.alfalaval.com
Slide 13: Highlights during the quarter
Highlights during the quarter Large orders z Equipment for production of Omega-3. z Clean technology to Indian paper mill. z Petrochemical order in Latin America. Heat exchangers and seawater filters to petrochemical company in Latin America. Total value SEK 50 million. Delivery during 2008. © Alfa
Slide 14: Highlights during the quarter
Highlights during the quarter Large orders z Equipment for production of Omega-3. z Clean technology to Indian paper mill. z Petrochemical order in Latin America. z Order for growing brewery industry in Ukraine. Process solutions for two breweries in Ukraine. Total value SEK 50 million. Delivery dur
Slide 15: Highlights during the quarter
Highlights during the quarter Large orders z Equipment for production of Omega-3. z Clean technology to Indian paper mill. z Petrochemical order in Latin America. z Order for growing brewery industry in Ukraine. z Order for evaporation system in USA. Total value SEK 65 million, including a ten year
Slide 16: Capital Markets Day
Capital Markets Day 13 November at Hilton Copenhagen Airport Hotel Æ Structural changes in Alfa Laval’s end markets – with focus on clean technologies and energy related industries. Æ 10.30 – 16.30. © Alfa Laval Slide 16 www.alfalaval.com
Slide 17: Interim Report Q3 2007
Interim Report Q3 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 18: Orders received by Segment
Orders received by Segment July – September 2007, at constant rates + Comfort & Refrigeration Parts & Service + Life Science − + Marine & Diesel Process Industry + + Fluids & Utility + OEM Energy & Environment + = Sanitary Food + © Alfa Laval Slide 18 www.alfalaval.com
Slide 19: Orders received by Segment: Process Technology Division
Orders received by Segment The Process Technology Division, July – September 2007, at constant rates and for comparable units z Strong growth in Food. High investment level for brewery and fish proteins as Omega-3. Life Science − z Continued high investment level in Process Industry + traditional en
Slide 20: Orders received by Segment: Equipment Division
Orders received by Segment The Equipment Division, July – September 2007, at constant rates and for comparable units + Comfort & Refrigeration z Marine & Diesel showed record order intake. z The Refrigeration market continued to + Marine & Diesel develop favourably. z Lower demand for + Fluids & Uti
Slide 21: Contracting of ships
Contracting of ships No of ships of 2,000 DWT, GT or above. 7 months moving average. Ships/Year 1800 1600 1400 1200 1000 800 600 400 200 0 Y ear , M o nt h 2002 3,012003 4,012004 5,012005 6,012006 7,012007 2002,01 Japan South Korea China Total Europe Source: LR Fairplay mid-2007, Bastiansen/Clarkson
Slide 22: Orders received by Segment
Orders received by Segment January – September 2007, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel Life Science + + Fluids & Utility Process Industry + + OEM Energy & Environment − + Sanitary Food + © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: Interim Report Q3 2007
Interim Report Q3 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 24: Orders received by Region
Orders received by Region July – September 2007, at constant rates Other 2 % N L. A m ordi c8% erica +12 No rth Am 6% er +4 +30 +12 i ca 14 +53 % Western Europe 27 % Ce +48 ntr .& Asia 34 % Ea st %9 © Alfa Laval Slide 24 www.alfalaval.com
Slide 25: Highlights Americas
Highlights Americas July – September 2007, at constant rates North America z Continued strong growth in base sales. +4 z Investments in bio ethanol declining. Latin America z High investments in energy related industries. +48 z Energy & Environment and Process Industry were the strongest segments. ©
Slide 26: Highlights Europe
Highlights Europe July – September 2007, at constant rates Western Europe incl. Nordic z Strongest development in Food, Process Industry and +12 Parts & Service. z Best growth in Benelux +30 +12 and Adriatic. Central and Eastern Europe z Food, Energy & Environment and Parts & Service were the strong
Slide 27: Highlights Asia
Highlights Asia July – September 2007, at constant rates Asia z A very strong quarter for the marine industry in China and for Parts & Service in the region. +53 z The growth was well spread across the region, particularly strong in China, Middle-East and India. © Alfa Laval Slide 27 www.alfalaval.c
Slide 28: Orders received by Region
Orders received by Region January – June 2007, at constant rates Other 2% Nord L. A me ic 9% +19 rica No rth Am 5% +27 +18 +9 er ica 17 +36 % Western Europe 27% Ce +57 nt r. Asia 31% & Ea st 9% © Alfa Laval Slide 28 www.alfalaval.com
Slide 29: Interim Report Q3 2007
Interim Report Q3 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group
Slide 30: Highlights
Highlights SEK million Jul – Sep 07 Order intake 7,150 Net sales 6,385 Adjusted EBITA 1,340 Adjusted EBITA-margin 21.0% © Alfa Laval Slide 30 www.alfalaval.com
Slide 31: Gross profit margin
Gross profit margin In percent of sales 50 40 39.1 37.2 35.1 35.3 30 20 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 © Alfa Laval Slide 31 www.alfalaval.com
Slide 32: Highlights
Highlights SEK million Jul – Sep 07 Order intake 7,150 Net sales 6,385 Adjusted EBITA 1,340 Adjusted EBITA-margin 21.0% Profit before tax 1,252 © Alfa Laval Slide 32 www.alfalaval.com
Slide 33: Earnings per share
Earnings per share Jul - Sep 2007 2006 Earnings 8.33 3.91 Earnings, excluding step-up 8.89 4.45 © Alfa Laval Slide 33 www.alfalaval.com
Slide 34: Repurchase of shares
Repurchase of shares Mandate to repurchase 10 percent of the issued shares Q3 07 YTD 07 Number of repurchased shares 2,246,920 3,258,889 Percentage of outstanding shares 2.0 2.9 Decrease of equity capital* 939 1,365 *In parent company and in the Group (SEK millions) © Alfa Laval Slide 34 www.alfalav
Slide 35: Highlights
Highlights SEK million Jul – Sep 07 Order intake 7,150 Net sales 6,385 Adjusted EBITA 1,340 Adjusted EBITA-margin 21.0% Profit before tax 1,252 Cash flow from operating activities 976 ROCE 47.1% ROE 37.9% © Alfa Laval Slide 35 www.alfalaval.com
Slide 36: Working capital
Working capital SEK million and in percent of sales 3 200 32,0 2 400 24,0 1 600 16,0 800 8,0 0 0,0 Q303 Q304 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 © Alfa Laval Slide 36 www.alfalaval.com
Slide 37: Cash-flow statement
Cash-flow statement Jan – Sep Jan – Sep SEK million 2007 2006 Cash flows from - operating activities 2,014 1,624 - investing activities - 947 -1,411 Financial net paid - 166 - 52 Dividends - 716 - 587 Total 185 - 426 Pro Forma Free-cash-flow* 1,607 1,380 *Incl. operating activities, capital expendit
Slide 38: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from Fx. fluctuations SEK million Q3 07 YTD 07 WY 07* WY 08* Translation effect - 17 - 110 - 140 0 Transaction effect - 38 - 100 - 150 - 135 Total - 55 - 210 - 290 - 135 *Based on EUR/USD 1.40 and EUR/SEK 9.20 for open exposures © Alfa Laval Slide
Slide 39: Order backlog as per September 30
Order backlog as per September 30 SEK millions 18000 16000 15,314 14000 11,839 12000 9,058 10000 8000 6,665 7,111 6000 3,553 4000 6,256 5,174 2000 3,558 0 2005 2006 2007 © Alfa Laval Slide 39 www.alfalaval.com For delivery during rest of current year For delivery in the later years
Slide 40: Interim Report Q3 2007
Interim Report Q3 2007 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 41: Outlook for the near future
Outlook for the near future “In many of the markets, geographical as well as customer segments, that Alfa Laval serves a continued very strong demand is expected.” © Alfa Laval Slide 41 www.alfalaval.com
Slide 42: www.alfalaval.com
© Alfa Laval Slide 42 www.alfalaval.com