Alfa Laval AB · OMXSTO:ALFA
Alfa Laval AB — Q2 2007 Earnings Presentation
37 slides from Alfa Laval AB's earnings presentation, 2007
Slide 1: www .alfalaval.com
© Alf a Lav al Slide 1 www .alfalaval.com
Slide 2: Interim Report Q2 2007
Interim Report Q2 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group
Slide 3: Key figures
Key figures April – June 2007 z Orders received up 13% to SEK 6,822 million. z Net sales up 29% to SEK 6,094 million. z Adjusted EBITA up 60% SEK 1,130 million. - Negative currency effect SEK 76 million. January – June 2007 z Orders received up 23% to SEK 13,827 million. z Net sales up 31% to SEK 11
Slide 4: Orders received
Orders received SEK million SEK million R 12 8 000 28 000 7 000 24 000 6 000 20 000 5 000 16 000 4 000 12 000 3 000 8 000 2 000 4 000 + 5% +23% +36% +13% Q304 +15% + 5% + 9% +28% +35% +17% Q406 +40% Q204 +20% Q305 +25% 1 000 0 0 Q105 Q306 Q107 Q404 Q205 Q405 Q106 Q206 Q207 = rolling twelve months va
Slide 5: Order analysis
Order analysis Apr – Jun 07 2006 (SEK million) 6,217 Structural change, % + 1 Currency effects,% - 3 Organic development, % + 12 Total, % + 10 2007 (SEK million) 6,822 © Alf a Lav al Slide 5 www .alfalaval.com
Slide 6: Adjusted EBITA / margin
Adjusted EBITA / margin * SEK million and in percent of sales 1 250 20,0 1 000 16,0 750 12,0 500 8,0 250 4,0 0 0,0 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 * Adjusted EBITA – ”Earnings bef ore interests, taxes, amortization of goodwill and step up v alues and comparison disto
Slide 7: Interim Report Q2 2007
Interim Report Q2 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group
Slide 8: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 240 million (380) z Process solution to large European ethanol plant. Total value SEK 50 million. Delivery during 2008. © Alf a Lav al Slide 8 www .alfalaval.com
Slide 9: Highlights during the quarter
Highlights during the quarter Large orders z Process solution to large European ethanol plant. z Petrochemical order for Saudi Arabia. The successful plate heat exchanger T50 for the plant’ plant ’s central cooling. Total value SEK 190 million. Delivery during 2009. © Alf a Lav al Slide 9 www .alfal
Slide 10: Highlights during the quarter
Highlights during the quarter Acquisitions z Additional 13 percent of Alfa Laval India. Alfa Laval AB owns approximately 77 percent of the listed company company Alfa Laval (India) Ltd. Investment SEK 505 million. © Alf a Lav al Slide 10 www .alfalaval.com
Slide 11: Highlights during the quarter
Highlights during the quarter Acquisitions z Additional 13 percent of Alfa Laval India. z Dutch company Helpman Helpman,, turnover SEK 200 million. One of the leading companies in Europe for air heat exchangers used used in the sensitive logistical chain for food. 130 employees. © Alf a Lav al Slide
Slide 12: Highlights during the quarter
Highlights during the quarter Acquisitions z Additional 13 percent of Alfa Laval India. z Dutch company Helpman Helpman,, turnover SEK 200 million. z American AGC Engineering, turnover SEK 70 million. Provides plate heat exchanger service and equipment to the dairy and food processing industries. St
Slide 13: Highlights during the quarter
Highlights during the quarter Repurchase of shares z Mandate to repurchase 10 percent of the issued shares. z During Q2 2007 Alfa Laval AB has repurchased 1,011,969 shares corresponding to 0.9% of the shares at a total price of SEK 426 million. © Alf a Lav al Slide 13 www .alfalaval.com
Slide 14: Interim Report Q2 2007
Interim Report Q2 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group
Slide 15: Orders received by Segment
Orders received by Segment April – June 2007, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel Life Science − + Fluids & Utility Process Industry + + OEM + Sanitary Energy & Environment − Food − © Alf a Lav al Slide 15 www .alfalaval.com
Slide 16: Orders received by Segment
Orders received by Segment The Process Technology Division, April – June 2007, at constant rates and for comparable units z Good growth in Process Industry, particularly refinery and petrochemical. petrochemical . Life Science − z Bio diesel is increasing, and bio ethanol remains + stable on a high
Slide 17: Orders received by Segment
Orders received by Segment The Equipment Division, April – June 2007, at constant rates and for comparable units z High investments in the + Comfort & Refrigeration dairy--, food- dairy food- and cosmetics industry. z Increased investments + Marine & Diesel in refrigeration. z Continued high + Fluid
Slide 18: Refrigeration
Refrigeration Increased focus with a broader product portfolio • The acquisition of Helpman Helpman.. • Turnover SEK 200 M, with a strong position in Europe. © Alf a Lav al Slide 18 www .alfalaval.com
Slide 19: Orders received by Segment
Orders received by Segment January – June 2007, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel + Life Science + Fluids & Utility + OEM Process Industry + + Sanitary Energy & Environment − Food − © Alf a Lav al Slide 19 www .alfalaval.com
Slide 20: Interim Report Q2 2007
Interim Report Q2 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group
Slide 21: Orders received by Region
Orders received by Region April – June 2007, at constant rates Other 2 % L. A m No r di eric a c1 No +22 0% rt hA 6 me +21 % ri c +21 +2 a 18 +2 % Western Europe 28 % Centr. +70 & Eas Asia 26 % % t 10 © Alf a Lav al Slide 21 www .alfalaval.com
Slide 22: Highlights Americas
Highlights Americas April – June 2007, at constant rates North America z Very good level of base business and a strong aftermarket. +21 z Best developm ent in Process Industry. Latin America z Outstanding development in Brazil. +70 z Very strong growth in Process Industry, Sanitary and Energy & Envi
Slide 23: Highlights Europe
Highlights Europe April – June 2007, at constant rates Western Europe incl. Nordic z Continued strong development +22 in base business. +2 +21 z Best order intake in Comfort & Refrigeration, Sanitary and Fluids & Utility. z A large energy order in France last year was not repeated. Central and Easte
Slide 24: Highlights Asia
Highlights Asia April – June 2007, at constant rates Asia z Continued good development of base business. z Best performance in Sanitary, +2 Comfort & Refrigeration and Fluids & Utility. © Alf a Lav al Slide 24 www .alfalaval.com
Slide 25: Orders received by Region
Orders received by Region January – June 2007, at constant rates Other 2% L. A No r di m er c1 +23 ica 0% No 5% rth +12 +7 Am +40 eri ca +27 19 % Western Europe 27% Cen +62 t r. & Asia 28% Ea s t 9 % © Alf a Lav al Slide 25 www .alfalaval.com
Slide 26: Interim Report Q2 2007
Interim Report Q2 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group
Slide 27: Highlights
Highlights SEK million Apr – Jun 07 Order intake 6,822 Net sales 6,094 Adjusted EBITA 1,130 Adjusted EBITA- EBITA- margin 18.5% © Alf a Lav al Slide 27 www .alfalaval.com
Slide 28: Gross profit margin
Gross profit margin In percent of sales 50 40 39.3 37.0 37.3 35.8 30 20 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 © Alf a Lav al Slide 28 www .alfalaval.com
Slide 29: Highlights
Highlights SEK million Apr – Jun 07 Order intake 6,822 Net sales 6,094 Adjusted EBITA 1,130 Adjusted EBITA- EBITA- margin 18.5% Profit before tax 1,037 © Alf a Lav al Slide 29 www .alfalaval.com
Slide 30: Earnings per share
Earnings per share Apr - Jun 2007 2006 Earnings 6.48 3.97 Earnings, excluding step- step-up 11.55 7.89 © Alf a Lav al Slide 30 www .alfalaval.com
Slide 31: Highlights
Highlights SEK million Apr – Jun 07 Order intake 6,822 Net sales 6,094 Adjusted EBITA 1,130 Adjusted EBITA- EBITA- margin 18.5% Profit before tax 1,037 Cash flow from operating activities 488 ROCE 41.1% © Alf a Lav al Slide 31 www .alfalaval.com
Slide 32: Cash-flow statement
Cash-flow statement Jan – June Jan – June SEK million 2007 2006 Cash flows from - operating activities 1,038 909 - investing activities - 849 - 1,359 Financial net paid - 162 - 20 Total 27 - 470 Pro Forma Free- Free-cash cash--flow* 732 752 *Incl. operating activities, capital expenditure (excl. pro
Slide 33: Foreign exchange
Foreign exchange Estimated impact on adjusted EBIT A from Fx Fx.. fluctuations SEK million Q2 07 H1 07 WY 07* WY 08* Translation effect - 73 - 93 - 130 0 Transaction effect - 3 - 62 - 155 - 85 Total - 76 - 155 - 285 - 85 *Based on EUR/USD 1.35 and EUR/SEK 9.25 © Alf a Lav al Slide 33 www .alfalaval.
Slide 34: Order backlog as per June 30
Order backlog as per June 30 SEK million 16000 14,573 14000 12000 11,083 10000 6,059 8000 4,486 6,404 6000 1,611 8,514 4000 6,597 4,793 2000 0 2005 2006 2007 © Alf a Lav al Slide 34 www .alfalaval.com For delivery during rest of current year For delivery in the later years
Slide 35: Interim Report Q2 2007
Interim Report Q2 2007 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group
Slide 36: 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.” © Alf a Lav al Slide 36 www .alfalaval.com
Slide 37: www .alfalaval.com
© Alf a Lav al Slide 37 www .alfalaval.com