Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Alfa Laval Corporate — Q2 2023 Earnings Presentation

21 slides from Alfa Laval Ab's earnings presentation, Jul 20, 2023

  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 Q2 2023

    Report for Q2 2023 Tom Erixon President and CEO Alfa Laval Group 19/07/2023 | © Alfa Laval 2 | www.alfalaval.com Classified by Alfa Laval as: Business

  3. Slide 3: Key figures

    Key figures − SEK million Q2 2023 Q2 2022 Tot ∆, Organic ∆, % %* Order intake 18,405 14,421 28 9 Net sales 15,880 11,852 34 17 Adjusted EBITA 2,378 1,959 21 Adjusted EBITA-margin (%) 15.0 16.5 *) Organic growth i.e. excluding currency effects and structural changes. 19/07/2023 | © Alfa Laval 3 | www

  4. Slide 4: Energy division

    Energy division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q2 23 Q2 22 Tot ∆, Org ∆, Q1 23 % % • Continued strong order intake across all customer segments and most geographies. ORDERS 5,413 4,496 20.4 13.3 5,437 • Growth mainly driven by continued investments in SALES 4,910 3,639

  5. Slide 5: Marine division

    Marine division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q2 23 Q2 22 Tot ∆, Org ∆, Q1 23 % % • Strong order intake with growth in most product areas. ORDERS 6,051 4,892 23.7 17.8 7,172 • Continued good demand for pumping systems. SALES 4,558 4,073 11.9 4.7 4,193 • Growth support

  6. Slide 6: Food & Water division

    Food & Water division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q2 23 Q2 22 Tot ∆, Org ∆, Q1 23 % % • Continued good demand, driven by larger projects. ORDERS 6,941 5,033 37.9 -3.9 5,776 • Strong growth for Desmet. SALES 6,412 4,140 54.9 18.5 5,722 • Supply chain challenges easin

  7. Slide 7: Service orders

    Energy, Q2 Food&Water, Q2 Marine, Q2 Service orders 26% of orders 25% of 33% of orders orders − Order intake, SEK million SEK million SEK million 6 000 20 000 18 000 5 000 16 000 14 000 4 000 12 000 3 000 10 000 8 000 2 000 6 000 4 000 1 000 2 000 - - 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2 20 Q3 20 Q4 21 Q1

  8. Slide 8: Orders received by region

    Orders received by region − at fixed rates 2%; +19% / +36% Africa & Oceania 8%; Nordic 20%; +37% / +13% North America +8% / +13% +5% / +19% 4%; +20% / +40% Latin America 19%; Western Europe +67% / +39% 5%; Central- & Eastern +33% / +29% Europe* 42%; Asia Share %: Jan – Jun 2023 vs Q2 2022 / YTD 2022

  9. Slide 9: Financials

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

  10. Slide 10: 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 +28% 9 000 30 000 6 000 20 000 3 000 10 000 0 0 Q2 19 Q3 19 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 = Order intake per quarter “large” = Rol

  11. Slide 11: Sales

    Sales − SEK million SEK million SEK million, LTM 18 000 70 000 60 000 16 000 Q2 2023 50 000 14 000 • Sales of 15,880 MSEK (11,852) 40 000 • 34% growth 12 000 30 000 • 17% organic growth 10 000 • 10% structure 20 000 • 7% currency 8 000 10 000 • Improving supply chains 6 000 0 Q219 Q319 Q419 Q120 Q22

  12. Slide 12: Key figures

    Key figures − SEK million Q2 2023 Q2 2022 Sales 15,880 11,852 Gross profit 5,144 4,263 Sales & Admin -2,342 -1,950 R&D -417 -323 Net other cost/income -268 -254 Operating income 2,136 1,744 Financial net -133 -168 Profit before tax 2,003 1,576 Taxes -488 -424 EPS 3.63 2.75 19/07/2023 | © Alfa Laval

  13. Slide 13: Adjusted EBITA margin

    Adjusted EBITA margin* − SEK million and in percent of sales SEK million Margin, % 20,0 2 500 19,0 Q2 2023 Organic Currency Structure Q2 2022 18,0 Sales 15,880 1,967 839 1,221 11,852 17,0 2 000 Sales 34.0% 16.6% 7.1% 10.3% 16,0 growth, % Adj 15,0 2,378 228 93 98 1,959 EBITA 1 500 14,0 Adj 15.0% 16.5

  14. Slide 14: Sales and margin bridge Food & Water

    Sales and margin bridge Food & Water − SEK million and in percent of sales Food&Water Q2 2023 Organic Currency Structure Q2 2022 Sales 6,412 765 381 1126 11,852 • Organic leverage despite Sales growth, % 54.9% 18.5% 9.2% 27.2% negative mix Adj EBITA 962 137 49 92 1,959 • Dilution from acquisition Ad

  15. Slide 15: Cash-flow statement

    Cash-flow statement − SEK million Q2 2023 Q2 2022 YTD 2023 YTD 2022 EBITDA 2,783 1,885 5,535 4,070 Working Capital -739 -1,204 -2,051 -2,141 Taxes paid -702 -489 -1,138 -970 Cash flow from operating 1,342 192 2,346 959 activities Capital expenditures -549 -311 -989 -585 Free cash flow 793 -119 1,357

  16. Slide 16: Order backlog as per June 30

    Order backlog as per June 30 − SEK billion SEK billion 45 40 35 Q2 2023 30 • Order backlog of 45 BSEK 25 • 20.1 BSEK for delivery 2023 20 • 24.9 BSEK for delivery 2024 or later 15 • 53% increase YoY 10 • Current backlog corresponding to 4.0 5 months 0 • Q2 book-to-bill of 1.16 Q219 Q319 Q419 Q120 Q2

  17. Slide 17: Guidance

    Guidance Q3 2023 FY 2023 FY 2024 CAPEX (cash) Around similar level as Estimated 2.5 – 3.0 BSEK Estimated 2.5 – 3.0 BSEK previous quarter Currency impact on Estimated transaction and Estimated transaction and Estimated transaction and EBITA* translation impact of translation impact of translation imp

  18. Slide 18: Outlook for the third quarter

    Outlook for the third quarter: “Despite slowing economic activity, demand in Alfa Laval’s end-markets is expected to remain unchanged although affected by third quarter lower seasonality.” 19/07/2023 | © Alfa Laval 18 | www.alfalaval.com Classified by Alfa Laval as: Business

  19. Slide 19: www.alfalaval.com Classified by Alfa Laval as: Business

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

  20. Slide 20: 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 = LTM = FY 2022 *Top ten markets order intake development 2022. 19/07/2023 | © Alfa Laval 20 | www.alfalaval.com Classif

  21. Slide 21: 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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