Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Alfa Laval Corporate — Q3 2023 Earnings Presentation
21 slides from Alfa Laval Ab's earnings presentation, Oct 25, 2023
Slide 1: www.alfalaval.com Classified by Alfa Laval as: Business
www.alfalaval.com Classified by Alfa Laval as: Business
Slide 2: Report for Q3 2023
Report for Q3 2023 Tom Erixon President and CEO Alfa Laval Group 24/10/2023 | © Alfa Laval 2 | www.alfalaval.com Classified by Alfa Laval as: Business
Slide 3: Key figures
Key figures − SEK million Q3 2023 Q3 2022 Tot ∆, Organic ∆, % %* Order intake 17,032 15,202 12 4 Net sales 15,768 13,184 20 13 Adjusted EBITA 2,626 1,934 36 Adjusted EBITA-margin (%) 16.7 14.7 *) Organic growth i.e. excluding currency effects and structural changes. 24/10/2023 | © Alfa Laval 3 | www
Slide 4: Energy division
Energy division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q3 23 Q3 22 Tot ∆, Org ∆, Q2 23 % % • Growth supported by continued investments in energy efficiency initiatives in all end markets. ORDERS 4,902 4,583 7.0 2.3 5,413 • Continued high demand in Gas and Refinery. SALES 4,967
Slide 5: Marine division
Marine division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q3 23 Q3 22 Tot ∆, Org ∆, Q2 23 % % • Strong order intake with growth in most product areas. ORDERS 5,765 5,008 15.1 11.4 6,051 • Continued good demand for pumping systems. SALES 4,715 4,056 16.2 11.0 4,558 • Growth suppor
Slide 6: Food & Water division
Food & Water division − Highlights and comments, SEK million MARKETS & ORDER INTAKE Q3 23 Q3 22 Tot ∆, Org ∆, Q2 23 % % • Continued good demand driven by large projects, including Desmet. ORDERS 6,365 5,611 13.4 -2.1 6,941 • The transactional business remained on a somewhat SALES 6,086 5,402 12.7 2.
Slide 7: Service orders
Energy, Q3 Food&Water, Q3 Marine, Q3 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 - - 19 Q3 19 Q4 20 Q1 20 Q2 20 Q3 20 Q4 21 Q1 21 Q2 21 Q3 21 Q4 22 Q1 22 Q2 22 Q3 22
Slide 8: Orders received by region
Orders received by region − at fixed rates 2%; -6% / +22% Africa & Oceania 8%; Nordic 20%; +21% / +15% North America -13% / +4% +25% / +22% 5%; +7% / +28% Latin America 19%; Western Europe +92% / +60% 5%; Central- & Eastern +35% / +31% Europe* 41%; Asia Share %: Jan – Sep 2023 vs Q3 2022 / YTD 2022
Slide 9: Financials
Financials Fredrik Ekström CFO Alfa Laval Group | © Alfa Laval | www.alfalaval.com
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 +12% 9 000 30 000 6 000 20 000 3 000 10 000 0 0 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 Q3 23 = Order intake per quarter “large” = Rol
Slide 11: Order backlog as per September 30
Order backlog as per September 30 − SEK billion SEK billion 50 45 40 Q3 2023 35 • Order backlog of 46 BSEK 30 • 13.0 BSEK for delivery 2023 25 • 33.5 BSEK for delivery 2024 or later 20 • 23% increase YoY 15 • Current backlog corresponding to 8.0 10 5 months of sales 0 • Q3 book-to-bill of 1.08 Q319
Slide 12: Sales
Sales − SEK million SEK million SEK million, LTM 18 000 70 000 60 000 16 000 Q3 2023 50 000 14 000 • Sales of 15,768 MSEK (13,184) 40 000 • 20% growth 12 000 30 000 • 13% organic growth 10 000 • 3% structure 20 000 • 4% currency 8 000 10 000 6 000 0 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421
Slide 13: Key figures
Key figures − SEK million Q3 2023 Q3 2022 Sales 15,768 13,184 Gross profit 5,233 4,274 Sales & Admin -2,260 -2,044 R&D -374 -329 Net other cost/income -235 -215 Operating income 2,379 1,686 Financial net -34 -105 Profit before tax 2,345 1,581 Taxes -564 -356 EPS 4.29 2.92 24/10/2023 | © Alfa Laval 1
Slide 14: Adjusted EBITA margin
Adjusted EBITA margin* − SEK million and in percent of sales SEK million Margin, % 19,0 2 500 18,0 Q3 2023 Organic Currency Structure Q3 2022 17,0 Sales 15,768 1,661 514 409 13,184 2 000 16,0 Sales 19.6% 12.6% 3.9% 3.1% growth, % 15,0 Adj 2,626 617 42 33 1,934 EBITA 1 500 14,0 Adj 16.7% 14.7% EBITA
Slide 15: Cash-flow statement
Cash-flow statement − SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022 EBITDA 3,006 2,400 8,541 6,470 Working Capital 429 -1,260 -1,622 -3,401 Taxes paid -503 -470 -1,641 -1,440 Cash flow from operating 2,932 670 5,278 1,629 activities Capital expenditures -527 -355 -1,516 -940 Free cash flow 2,405 315
Slide 16: Debt position
Debt position − SEK million Net debt Maturity profile and liquidity buffer • Loans maturing 2023-2029: 15,134 MSEK Q3 2023 Q3 2022 • Weighted maturity 2.8 years. 33% matures within 12 months Debt 15,452 14,943 • Average funding rate on our debt is 1.92% p.a. Debt/EBITDA 1.42 1.69 • Interest duration
Slide 17: Guidance
Guidance Q4 2023 FY 2023 FY 2024 CAPEX (cash) Around similar level as Estimated 2.5 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 impact of
Slide 18: Outlook for the fourth quarter
Outlook for the fourth quarter: “We expect demand in the fourth quarter to be on about the same as in the third quarter.” 24/10/2023 | © Alfa Laval 18 | www.alfalaval.com Classified by Alfa Laval as: Business
Slide 19: Q&A
Q&A 24/10/2023 | © Alfa Laval 19 | www.alfalaval.com Classified by Alfa Laval as: Business
Slide 20: www.alfalaval.com Classified by Alfa Laval as: Business
www.alfalaval.com Classified by Alfa Laval as: Business
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