Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Investor Day (November 2009)

25 slides from Alfa Laval Ab's investor day presentation, Nov 17, 2009

Slide 1: Alfa Laval
Slide 2: Capital Markets Day 2009
Capital Markets Day 2009 Lars Renström President and CEO www.alfalaval.com
Slide 3: Today’s program
Today’s program Capital Markets Day, November 17, 2009 • Business update and Q&A Lars Renström, Alex Syed and Thomas Thuresson Lunch Trends, opportunities & products • Introduction Lars Renström • Equipment Division Business update incl trends, opportunities & products Coffee Susanne Pahlén Åklundh
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 +35% +28% +13% +25% +36% +23% +30% -32% +17% -30% -37% +9% 0% +40% +8% -3% -15% 1 000 4 000 0 0 Q107 Q407 Q206 Q307 Q109 Q405 Q207 Q209 Q408 Q306 Q309 Q305 Q406 Q308
Slide 5: Orders received by Region
Orders received by Region Sequential development Q3 versus Q2, at constant rates -12 +35 -3 +8 +50 © Alfa Laval Slide 5 www.alfalaval.com
Slide 6: Adjusted EBITA / margin
Adjusted EBITA / margin * SEK millions and in percent of sales 1 800 24,0 1 575 21,0 1 350 18,0 1 125 15,0 900 12,0 675 9,0 450 6,0 225 3,0 0 0,0 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step u
Slide 7: Number of shareholders
Number of shareholders 35 000 30 000 25 000 20 000 15 000 10 000 5 000 2005 2006 2007 2008 H1 2009 © Alfa Laval Slide 7 www.alfalaval.com
Slide 8: Focus areas in the down turn
Focus areas in the down turn After the downturn © Alfa Laval Slide 8 www.alfalaval.com
Slide 9: Overview cost and capacity adjustment
Overview cost and capacity adjustment - update as per September 30th, 2009 Total estimated savings: SEK > 900 m Savings achieved in Q3: SEK 220 m - Savings from January program – full impact from Q4 2009 - Savings from further measures – full impact from Q1 2010 Capacity reduction targeted with init
Slide 10: Aftermarket potential
Aftermarket potential Multiple* Plate heat exchangers x1 1--7 Separators x4 Decanters x 1.5 Pumps & Valves x1 1--2.5 *) Value in the aftermarket in relation to new sales www.alfalaval.com
Slide 11: Investment in the aftermarket
Investment in the aftermarket P&S headcount development 2 400 2 235 2 200 2 143 +35% 2 000 1 914 1 800 1 750 1 663 1 600 1 400 1 200 2005 2006 2007 2008 2009E © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Resilience in an economic downturn
Resilience in an economic downturn A well- well-positioned company with a large installed base Parts & Service sales 20-29% Capital sales 71-80 % © Alfa Laval Slide 12 www.alfalaval.com
Slide 13: Higher portion of new products
Higher portion of new products MSEK 800 Investments in R&D 700 600 +65% 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009E © Alfa Laval Slide 13 www.alfalaval.com
Slide 15: Higher portion of new products
Higher portion of new products Decanter portfolio – Launch of new products 2005 2006 2007 2008 2009 2010 Launches © Alfa Laval www.alfalaval.com Slide 15
Slide 16: Product Centre Decanters
Product Centre Decanters Newness – Gross Margin NS Last 5 Years & Older L5Y Older Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q4 06 Q1 07 Q2 07 Q3 07 Q2 09 www.alfalaval.com
Slide 17: Product Centre Welded HE
Product Centre Welded HE Newness more than doubled between 2006 & 2008 100% 80% 60% 40% 20% 0% 2006 2007 2008 2009E 2010E Slide 17 www.alfalaval.com
Slide 18: Complementary acquisitions
Complementary acquisitions During 2005-2009 added 4% annual sales growth Continue to add 3-4% of annual sales growth Continue to acquire companies that complement Alfa Laval in terms of geography, channels or products www.alfalaval.com
Slide 19: Acquisition strategy
Acquisition strategy Acquisitions since 2007 Product Channel Annual Sales MSEK 2,500 Exclusive of Alfa Laval India (64 → 89%) © Alfa Laval Slide 19 www.alfalaval.com
Slide 21: Alfa Laval’s position
Alfa Laval’s position No. 1 in all three product areas Excellent Energy Environment Food 3-4% acquired global growth p.a. presence © Alfa Laval Slide 21 www.alfalaval.com
Slide 22: Structural demand
Structural demand - Long- Long-term growth drivers Energy Environment Improved living Globalization standard © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: Opportunities
Opportunities Oil and gas Refining Petrochemicals Biofuels Power E&P LNG Tar Sands Gas to Liquids Coal Gasification/ CO2 Sequestration Liquefaction and Storage www.alfalaval.com
Slide 24: “After the downturn”
“After the downturn” “After a downturn the strong always come out stronger. We have taken the opportunity to acquire some competitors and weakened the ones that survive the downturn. When people are growing, the company will grow.” Lars Renström President and CEO at Alfa Laval’s Top Management Confe

Alfa Laval — Investor Day (November 2009) on 6ix

Alfa Laval Ab — Investor Day (November 2009)

Slide 1: Alfa Laval

Slide 2: Capital Markets Day 2009

Slide 3: Today’s program

Slide 4: Orders received

Slide 5: Orders received by Region

Slide 6: Adjusted EBITA / margin

Slide 7: Number of shareholders

Slide 8: Focus areas in the down turn

Slide 9: Overview cost and capacity adjustment

Slide 10: Aftermarket potential

Slide 11: Investment in the aftermarket

Slide 12: Resilience in an economic downturn

Slide 13: Higher portion of new products

Slide 14: More new customer values

Slide 15: Higher portion of new products

Slide 16: Product Centre Decanters

Slide 17: Product Centre Welded HE

Slide 18: Complementary acquisitions

Slide 19: Acquisition strategy

Slide 20: After the downturn

Slide 21: Alfa Laval’s position

Slide 22: Structural demand

Slide 23: Opportunities

Slide 24: “After the downturn”

Slide 25: www.alfalaval.com