Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q4 2003 Earnings Presentation
26 slides from Alfa Laval Ab's earnings presentation, February 2004
Slide 1: Alfa Laval
Slide 2: Interim Report Q4 and full year 2003
Interim Report Q4 and full year 2003 Mr. Sigge Haraldsson President and CEO Alfa Laval Group Mr. Thomas Thuresson CFO Alfa Laval Group
Slide 3: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK © Alfa Laval Slide 3 www.alfalaval.com
Slide 4: Q on Q vs. last year (excl FX)
Q on Q vs. last year (excl FX) Orders received 2003 14% 10% 6% 2% -2% Q103 Q203 Q303 Q403 Jan-Dec Jan-Dec Jan-Dec Group EQD PTD © Alfa Laval Slide 4 www.alfalaval.com
Slide 5: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK z Adjusted EBITA / margin: 463 MSEK / 11.3 % © Alfa Laval Slide 5 www.alfalaval.com
Slide 6: Adjusted EBITA / margin
Adjusted EBITA / margin * MSEK and in percent of sales 700 14,0 600 12,0 500 10,0 400 8,0 300 6,0 200 4,0 100 2,0 0 0,0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison distort
Slide 7: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK z Adjusted EBITA / margin: 463 MSEK / 11.3 % z Profit before tax: 275 MSEK © Alfa Laval Slide 7 www.alfalaval.com
Slide 8: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK z Adjusted EBITA / margin: 463 MSEK / 11.3 % z Profit before tax: 275 MSEK 2003 z Adjusted EBITA / margin: 1,627 MSEK / 11.7 % © Alfa Laval Slide 8 www.alfalaval.com
Slide 9: Adjusted EBITA
Adjusted EBITA MSEK Q4 WY 2002 535 1,755 2003 463 1,627 Deviation - 72 - 128 FX. translation 29 121 FX. transaction 92 152 Deviation excl FX + 49 + 145 © Alfa Laval Slide 9 www.alfalaval.com
Slide 10: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK z Adjusted EBITA / margin: 463 MSEK / 11.3 % z Profit before tax: 275 MSEK 2003 z Adjusted EBITA / margin: 1,627 MSEK / 11.7 % z Profit before tax: 817 MSEK z Cash flow from operating activities: 1,654 MSEK z ROCE: 21.3 % © Alfa Lava
Slide 11: Orders received by Segment
Orders received by Segment Parts & Service + + Comfort & Refrigeration + Marine & Diesel + Fluids & Utility Life Science+ + OEM Process Industry − Energy & Environment + + Sanitary Food + January – December 2003 © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Orders received by Region
Orders received by Region Other 2 % 4 % L. A No rdi mer c - 1 ica 3% As ia - + 25 % + + Western Europe 30 % % a st 9 % 17 + a ic - er Am E th & or N Ce n tr. January – December 2003 © Alfa Laval Slide 12 www.alfalaval.com
Slide 13: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK z Adjusted EBITA / margin: 463 MSEK / 11.3 % z Profit before tax: 275 MSEK 2003 z Adjusted EBITA / margin: 1,627 MSEK / 11.7 % z Profit before tax: 817 MSEK z Cash flow from operating activities: 1,654 MSEK z ROCE: 21.3 % z Asbestos-
Slide 14: Asbestos-related lawsuits in the US
Asbestos-related lawsuits in the US z Alfa Laval Inc. was as of December 31, 2003 named co-defendant in a total of 123 asbestos-related lawsuits with a total of approximately 19,900 plaintiffs. The lawsuits filed in Mississippi account for approximately 99% of all plaintiffs. z Developments between
Slide 15: Highlights
Highlights Q403 z Order intake: 3,750 MSEK z Net sales: 4,086 MSEK z Adjusted EBITA / margin: 463 MSEK / 11.3 % z Profit before tax: 275 MSEK 2003 z Adjusted EBITA / margin: 1,627 MSEK / 11.7 % z Profit before tax: 817 MSEK z Cash flow from operating activities: 1,654 MSEK z ROCE: 21.3 % z Asbestos-
Slide 16: Consolidated Profit and Loss
Consolidated Profit and Loss MSEK 2003 2002 Net sales 13,909 14,595 Adjusted EBITA 1,627 1,755 Amortization of goodwill and step-up - 494 - 507 Comparison distortion items 6 - 334 Financial net - 321 - 543 PBT 817 372 Taxes & minority - 171 - 252 Net income 646 120 © Alfa Laval Slide 16 www.alfalava
Slide 17: Gross profit margin
Gross profit margin In percent of sales 50 36.7% 38.7% 37.6% 40 30 20 Q101 Q201 Q301 Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 © Alfa Laval Slide 17 www.alfalaval.com
Slide 18: Gross profit margin
Gross profit margin In percent of sales, excl Fx. transaction exposure differences 50 36.7% 38.7% 38.7% 40 30 20 Q101 Q201 Q301 Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 © Alfa Laval Slide 18 www.alfalaval.com
Slide 19: Number of employees
Number of employees 9500 9,358 457 9,133 9000 8,901 Toftejorg + 101 bioKinetics + 356 8500 Reductions - 232 8000 7500 31 December, 2002 31 December, 2003 © Alfa Laval Slide 19 www.alfalaval.com
Slide 20: Taxes
Taxes Jan-Dec MSEK 2003 Profit after financial items, MSEK 817 - taxes, 33 % average - 270 Major adjustment items - goodwill, MSEK 191 - loss making countries, MSEK 130 - 144 - equity hedging, MSEK 195 Sweden* + 269 Other items + 15 Taxes according to P&L - 130 - in % of PBT 15.9 *Loss carry-forward
Slide 21: Foreign exchange
Foreign exchange Estimated impact from Fx. fluctuations full year 2004 vs. 2003 MSEK Adjusted EBITA Translation effect - 60 Transaction effect - 250 Total - 310 Based on market exchange rates as per December 31, 2003 © Alfa Laval Slide 21 www.alfalaval.com
Slide 22: Cash-flow statement
Cash-flow statement MSEK 2003 2002 Cash flows from - operating activities 1,654 1,924 - investing activities - 478 - 548 Financial net paid - 231 - 973 Dividends - 223 0 Total 722 403 Pro Forma Free-cash-flow* 1,215 1,015 *Incl. operating activities, capital expenditure, provisions and financial net
Slide 23: Earnings per share
Earnings per share 2003 2002 Earnings 5.78 1.41 Earnings excluding 9.34 6.17 goodwill and step-up Based on the current number of shares © Alfa Laval Slide 23 www.alfalaval.com
Slide 24: Outlook 2003
Outlook 2003 “Order intake will show a limited increase during the year. Additional savings initiatives will reduce the impact from foreign exchange exposures. Profit before tax will show a major improvement.” © Alfa Laval Slide 24 www.alfalaval.com
Slide 25: Outlook 2004
Outlook 2004 Alfa Laval is expecting that … … the recovery during the second half of 2003 will continue during 2004. … the increase of orders received will be strong. … the EBITA-margin, excluding exchange rate variations, will continue to improve. © Alfa Laval Slide 25 www.alfalaval.com
Slide 26: Slide 26