Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q3 2010 Earnings Presentation
35 slides from Alfa Laval Ab's earnings presentation, 2010
Slide 1: www.alfalaval.com
www.alfalaval.com
Slide 2: Report for Q3 2010
Report for Q3 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 3: Key figures
Key figures July – September 2010 Orders received rose 21% to SEK 6,134 million. Net sales unchanged at SEK 5,811 million. Adjusted EBITA up 14% at SEK 1,141 million. Adjusted EBITA margin widened to 19.6% - Positive currency effect SEK 124 million. January – September 2010 Orders received increased
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 +21% +21% -15% -32% -3% -30% -12% +8% -37% +9% 0% -13% +36% +17% +13% +40% +30% 1 000 4 000 0 0 Q108 Q407 Q208 Q408 Q307 Q308 Q207 Q209 Q306 Q309 Q406 Q409 Q210 Q310
Slide 5: Order analysis
Order analysis July – September 2010 2009 (SEK millions) 5,071 Structural change, % + 3.7 Currency effects,% - 2.1 Organic development, % + 19.4 Total, % + 21 2010 (SEK million) 6,134 © 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 12,0 675 9,0 450 6,0 225 3,0 0 0,0 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and s
Slide 7: Interim Report Q3 2010
Interim Report Q3 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 8: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 270 million (175) Waste water treatment order in the US. Order value SEK 250 million, of which 40 million was booked in Q2. Deliveries finalized in 2013. 2013. © Alfa Laval Slide 8 www.alfalaval.com
Slide 9: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 270 million (175) Waste water treatment order in the US. Heat exchanger order from Tata Chemicals in India. Order value SEK 60 million. Delivery in 2011. © Alfa Laval Slide 9 www.alfalaval.com
Slide 10: Interim report Q3 2010
Interim report Q3 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 11: Orders received by customer segment
Orders received by customer segment July – September 2010, at constant rates Life Science + + Industrial Equipment Process Industry − Energy & Environment + + Marine & Diesel + OEM Food == + Sanitary Parts & Service + © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Orders received by customer segment
Orders received by customer segment Process Technology Division July – September 2010, at constant rates Life Science + Process Industry − Energy & Environment + Food = Boost from US waste- waste-water order - largest order ever for Alfa Laval Parts & Service + Strong demand for parts, repair, maint
Slide 13: Orders received by customer segment
Orders received by customer segment Equipment Division, July – September 2010, at constant rates Increased activity in both food and pharma boosted Sanitary Strong demand from OEMs + Industrial Equipment Increased trade and higher utilization rates lifted demand for parts and service + Marine & Dies
Slide 14: Orders received by customer segment
Orders received by customer segment January - September 2010, at constant rates Life Science = + Industrial Equipment Process Industry − Energy & Environment + − Marine & Diesel Food + + OEM + Sanitary Parts & Service + © Alfa Laval Slide 14 www.alfalaval.com
Slide 15: Interim Report Q3 2010
Interim Report Q3 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 16: Orders received by Region
Orders received by Region July – September 2010, at constant rates +14 -9 +67 +26 Asia 33 % +9 © Alfa Laval Slide 16 www.alfalaval.com
Slide 17: Highlights Americas
Highlights Americas July – September 2010, at constant rates North America All segments reported growth Boost from largest order ever +67 Latin America Generally strong development with Energy & Environment, Food and Sanitary performing the best +9 © Alfa Laval Slide 17 www.alfalaval.com
Slide 18: Highlights Europe
Highlights Europe July – September 2010, at constant rates Western Europe incl. Nordic +14 Best development in UK and -9 Mid Europe Base business grew substantially Central and Eastern Europe Decline explained by non- non-repeats in Russia Very good development for base business and Parts & Service
Slide 19: Highlights Asia
Highlights Asia July – September 2010, at constant rates Asia Broad positive development and strongest performance in China, India and Korea Segments that stood out were OEM, Sanitary and Food © Alfa Laval Slide 19 www.alfalaval.com
Slide 20: Orders received by Region
Orders received by Region January – September 2010, at constant rates +8 = +36 +15 Asia 31 % +21 © Alfa Laval Slide 20 www.alfalaval.com
Slide 21: Interim Report Q3 2010
Interim Report Q3 2010 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Thomas Thuresson CFO Alfa Laval Group
Slide 22: Highlights
Highlights SEK millions July – September 2010 Order intake 6,134 Net sales 5,811 © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: Gross profit margin
Gross profit margin In percent of sales 50 40.6 41.7 40 39.1 38.0 30 20 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 © Alfa Laval www.alfalaval.com
Slide 24: Gross Profit Margin analysis
Gross Profit Margin - analysis year- year-on- on-year and sequentially In percent Q3 2009 Q2 2010 Actual 38.0 39.6 - Foreign exchange, transaction + 2.1 - 0.4 - Change in product mix + 0.8 + 1.1 Sub.total:: Sub.total 40.9 40.3 -Procurement (neg (neg)) -Productivity (pos) -Price adjustments (pos) -Ma
Slide 25: Highlights
Highlights SEK millions July – September 2010 Order intake 6,134 Net sales 5,811 Adjusted EBITA 1,141 Adjusted EBITA- EBITA-margin 19.6% Profit before tax 1,044 © Alfa Laval Slide 25 www.alfalaval.com
Slide 26: Earnings per share
Earnings per share July - Sep Jan - Sep 2010 2009 2010 2009 Earnings 1.78 1.65 5.20 4.94 Earnings, excluding step step--up 1.95 1.80 5.70 5.35 © Alfa Laval Slide 26 www.alfalaval.com
Slide 27: Repurchase of shares
Repurchase of shares Sept 30 Repurchased shares for cancellation 2,583,151 Percentage of outstanding shares 0.6 Cash--out and decrease in parent company Cash -253 and consolidated equity (SEK mln mln)) The AGM 2010 gave the Board a mandate to repurchase up to 5 percent of the company’s issued shares
Slide 28: Highlights
Highlights SEK millions July – Sept 2010 Order intake 6,134 Net sales 5,811 Adjusted EBITA 1,141 Adjusted EBITA- EBITA-margin 19.6% Profit before tax 1,044 Cash flow from operating activities 1,118 ROCE 35.8% ROE 23.1% © Alfa Laval Slide 28 www.alfalaval.com
Slide 29: Cash-flow statement
Cash--flow statement Cash Jan – Sep Jan – Sep SEK millions 2010 2009 Cash flow from - operating activities 3,017 3,781 - investing activities - 646 -2,541 Financial net paid - 10 - 153 Total 2,361 1,087 Pro Forma Free cash cash--flow flow** 2,780 3,324 *Incl. operating activities, capital expenditur
Slide 30: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q3 10 9M 10 WY 10 WY 11* Translation effect +4 -71 - 160 -100 Transaction effect +120 +395 +480 -240 Total +124 +324 +320 -340 *Based on EUR/USD 1.38 and EUR/SEK 9.30 © Alfa Laval Slide 30 www.alfalaval.com
Slide 31: Order backlog as per Sept 30
Order backlog as per Sept 30 SEK millions 18000 15,873 16000 13,192 14000 9,306 11,689 12000 7,705 10000 5,751 8000 6000 6,567 4000 5,487 5,938 2000 0 2008 2009 2010 For delivery after current year For delivery current year © Alfa Laval Slide 31 www.alfalaval.com
Slide 32: Sales Full year 2010
Sales Full year 2010 SEK (bln (bln)) 9M Sales 17.6 Backlog + 5.9 Subtotal 23.5 Remaining main parameters Orders “in- “in-for- for-out” 4Q + 1.0 (assuming 2009 level) Acquisitions (assuming no further acquisitions) + 0.2 FX (assuming current rates rest of year) - 0.3 Full year 2010 appr 24.4 www.alfa
Slide 33: Interim Report Q3 2010
Interim Report Q3 2010 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Slide 34: Outlook for the fourth quarter
Outlook for the fourth quarter “We expect demand in the fourth quarter to be on about the same level as in the third quarter.” © Alfa Laval Slide 34 www.alfalaval.com
Slide 35: www.alfalaval.com
www.alfalaval.com