Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Investor Day (October 2002)

36 slides from Alfa Laval Ab's investor day presentation, Oct 9, 2002

  1. Slide 1: Alfa Laval

  2. Slide 2: Capital Market Day October 9th, 2002

    Capital Market Day October 9th, 2002 Our brand is about performance Sigge Haraldsson President and CEO Alfa Laval Group

  3. Slide 3: Today's program

    Today’s program Capital Market Day, October 9th, 2002 • Update, growth strategy and some financial issues Sigge Haraldsson and Thomas Thuresson • Guided tour – manufacturing unit Ulf Granstrand and Sigge Haraldsson • Research and Development Thomas Zachrisson • Customer Segments Svante Karlsson • Pa

  4. Slide 4: Q302 Interim Report

    Q302 Interim Report • Release 7:30 AM CET, October 31st. • Roadshow, Stockholm, London and Copenhagen October 31st 09:00 AM CET Group breakfast in Stockholm, including conference call October 31st 04:00 PM CET Conference call November 1st 12:30 AM GMT Group lunch in London © Alfa Laval Slide 4 www.a

  5. Slide 5: A totally new company, founded in 1883

    A totally new company, founded in 1883 Agri To Tetra Laval Process Food To Technology Tetra Laval Division D&A Divested Automation Flow Industry Separation Equipment Division Thermal 1990 1991 Today © Alfa Laval Slide 5 www.alfalaval.com

  6. Slide 6: Highlights

    Highlights z A global company, founded in 1883 z Highly engineered, high-margin, non-commodity products z Leading, global market share positions z Substantial customer and geographic diversification z Large installed base of products z Highly respected Alfa Laval brand name z Significant upside pote

  7. Slide 7: A global company

    A global company Year 2001 • Total sales: MSEK 15,830 • No. of employees: 9,259 • 20 production units • 70 service centres • Sales Companies in 50 countries • Other sales representation in more than 45 countries © Alfa Laval Slide 7 www.alfalaval.com

  8. Slide 8: Key technologies

    Key technologies Heat Transfer Separation Fluid Handling © Alfa Laval Slide 8 www.alfalaval.com

  9. Slide 9: Capital sales / core product group

    Capital sales/core product group Heat Transfer Separation Fluid Handling Fluid Handling 20% Heat Transfer 47% Separation 33% Market share Market share Market share 36% 24% 10% Capital sales 2001 © Alfa Laval Slide 9 www.alfalaval.com

  10. Slide 10: Examples of End-User Markets

    Examples of End-User Markets Personal Care / Biopharm Fresh water generation Heating and Cooling Brewing Refrigeration www.alfalaval.com © Alfa Laval Slide 10

  11. Slide 11: Diversified blue chip customers

    Diversified blue chip customers BASF Bayer BP Cargill Chevron Coca-Cola Danone Du Pont Exxon Heineken Mobil Nestle Procter & Gamble Tetra Pak Unilever York © Alfa Laval Slide 11 www.alfalaval.com

  12. Slide 12: Highlights

    Highlights z Order intake: 3 964 MSEK z Net sales: 3 654 MSEK z Adjusted EBITA / margin: 445 MSEK / 12.2% z Cash flow: 937 MSEK * z ROCE: 17.7% * z Profit before tax: -193 MSEK*, incl. one-off costs 304 MSEK * ) January – June 2002 © Alfa Laval Slide 12 www.alfalaval.com

  13. Slide 13: Q on Q vs. last year (like for like)

    Q on Q vs. last year (like for like) Orders received Net sales 4 4 2 2 0 0 -2 -2 -4 -4 -6 -6 -8 -8 -10 -10 Q102 Q202 Jan-June 02 Q102 Q202 Jan-June 02 © Alfa Laval Slide 13 www.alfalaval.com

  14. Slide 14: Order Received by Segment

    Order Received by Segment Parts & Service + − Comfort & Refrigeration − Marine & Diesel − Fluids & Utility Life Science+ + OEM Process Industry − Energy & Environment − ∼ ∼ Sanitary Food + January – June 2002 © Alfa Laval Slide 14 www.alfalaval.com

  15. Slide 15: Order Received by Region

    Order Received by Region Other 3% L. A Nor mer d i c ica 4 + 13% As -+ ia 22 % % - - Western Europe 29% % 21 % + E ast 8 a ic er + Am th & or N Centrr January – June 2002 © Alfa Laval Slide 15 www.alfalaval.com

  16. Slide 16: Adjusted EBITA / Margin

    Adjusted EBITA / Margin * MSEK and in percent of sales 900 14,0 800 12,0 700 10,0 600 500 8,0 400 6,0 300 4,0 200 2,0 100 0 0,0 Jan- Jan-June 00 July- July-Dec 00 Jan- Jan-June 01 July- July-Dec 01 Jan- Jan-June 02 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and st

  17. Slide 17: Reengineering

    Reengineering © Alfa Laval Slide 17 www.alfalaval.com

  18. Slide 18: Beyond Expectations

    “Beyond Expectations” 800-1000 650-700 z Other Projects z BOM & NPR z Org. re-design z Shared Services z Manufacturing ”Target” ”Achieved” © Alfa Laval Slide 18 www.alfalaval.com

  19. Slide 19: Financials

    Financials A couple of ”your issues” Thomas Thuresson CFO Alfa Laval Group

  20. Slide 20: Consolidated Profit and Loss

    Consolidated Profit and Loss Proforma* MSEK 1.1-30.6 2002 1.1-30.6 2002 1.1-30.6 2001 Net sales 6,916 6,916 7,259 Adjusted EBITA 807 807 851 Amortization of goodwill and step-up - 252 - 252 - 254 Financial net - 217 - 399 - 551 Comparison distortion items 0 - 348 0 Profit before tax 338 - 193 46 Pro

  21. Slide 21: Intangibles in the Balance-Sheet

    Intangibles in the Balance-Sheet Paid August 24, 2000 8 000 7 000 6 000 5 000 Goodwill MSEK 4 000 MSEK 7,300 3 000 2 000 1 000 0 © Alfa Laval Slide 21 www.alfalaval.com

  22. Slide 22: Intangibles in the Balance-Sheet

    Intangibles in the Balance-Sheet Paid August 24, 2000 8 000 7 000 6 000 5 000 Goodwill MSEK - US-GAAP 4 000 MSEK 7,300 - Independen 3 000 t valuation 2 000 1 000 0 © Alfa Laval Slide 22 www.alfalaval.com

  23. Slide 23: Intangibles in the Balance-Sheet

    Intangibles in the Balance-Sheet Paid August 24, 2000 Allocation 8 000 Realised Aug-Dec 2000, 7 000 MSEK 600 6 000 Allocated value 5 000 MSEK 3,400 Goodwill MSEK - US-GAAP 4 000 MSEK 7,300 - Independen 3 000 t valuation 2 000 Goodwill MSEK 3,300 1 000 0 © Alfa Laval Slide 23 www.alfalaval.com

  24. Slide 24: Intangibles in the Balance-Sheet

    Intangibles in the Balance-Sheet Allocated values Depreciation as per individual asset category. Depreciation per annum, MSEK 334. Deferred tax liability, MSEK 979 (Dec. 31, 2001). Goodwill Amortization over 20 years, according to standard. Amortization per annum, MSEK 178. Deferred taxes not applie

  25. Slide 25: Financial Debt and Financial Net

    Financial Debt and Financial Net As per Proforma* June 30, 2002 Financial Income/ Cost MSEK MSEK Assumptions Cash and Deposits + 957 + 19 (2 %) Financial Debt - Credit institutions 3,919 176 (4 1/2%) - Bond 1,298 157 (12 1/8 %) - Other 27 2 (7%) IRS’s 80 (Until 9/03) Capital. financing costs (78) 12

  26. Slide 26: Cash-flow statement

    Cash-flow statement Proforma MSEK 1.1-30.6 2002 1.1-30.6 2002 EBITDA 978 978 Working capital 117 117 Taxes paid - 158 - 158 Cash flow from operating activities 937 937 Capital expenditures - 152 - 152 Divestments 61 - Acquisitions* - 368 - Provisions - 27 - 27 Cash flow from investing activities - 4

  27. Slide 27: Capital Expenditures 1997 - 2001

    Capital Expenditures 1997 - 2001 500 405 400 389 389 83 106 132 297 300 37 275 MSEK 27 27 103 53 126 200 124 106 25 65 59 100 159 132 124 157 110 0 1997 1998 1999 2000 2001 Machinery EDP Property Other © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Key ratios

    Key ratios Ratio Remarks January-June 2002 Earnings Per Share - Current number of shares Before tax, SEK 3.03 (proforma) - New capital structure After tax SEK 1.88 - Exclusive of comparison distortion items Earnings Per Share - As above adding back Before tax SEK 5.28 (proforma, excl. goodwill goodw

  29. Slide 29: Reengineering

    Reengineering © Alfa Laval Slide 29 www.alfalaval.com

  30. Slide 30: Customer orientation

    Customer orientation By core product By customer process © Alfa Laval Slide 30 www.alfalaval.com

  31. Slide 31: Reengineering

    Reengineering © Alfa Laval Slide 31 www.alfalaval.com

  32. Slide 32: Accelerating growth: The six step Alfa Laval gearbox

    Accelerating growth: The six step Alfa Laval gearbox 1 3 5 2 4 6 © Alfa Laval Slide 32 www.alfalaval.com

  33. Slide 33: The drivers behind Alfa Laval's growth strategy

    The drivers behind Alfa Laval’s growth strategy 1st gear: Existing range of products 2nd gear: 1Market-driven3R&D 5 3rd gear: Focus on customer segments 4th gear: Strong commitment to Parts & Service 5th gear: Exploitation of new market concepts 6th gear: 2Ambition to add 4 new core 6 products © Alf

  34. Slide 34: The six step Alfa Laval gearbox

    The six step Alfa Laval gearbox Existing Customer New market products segments concepts 1 3 5 2 4 6 Market-driven Parts & Service New core R&D products 4 4 www.alfalaval.com © Alfa Laval Slide 34

  35. Slide 35: The six step Alfa Laval gearbox

    The six step Alfa Laval gearbox Existing Customer New market products segments concepts 1 3 5 All six gears will give us an annual average growth of 5 % over a business cycle. 2 4 6 Market-driven Parts & Service New core R&D products © Alfa Laval Slide 35 www.alfalaval.com

  36. Slide 36: Slide 36

Alfa Laval — Investor Day (October 2002) on 6ix