Alfa Laval AB · OMXSTO:ALFA

Alfa Laval AB — Q4 2005 Earnings Presentation

34 slides from Alfa Laval AB's earnings presentation, 2006

  1. Slide 1: www.alfalaval.com

    © Alfa Laval Slide 1 www.alfalaval.com

  2. Slide 2: Interim Report Q4 2005

    Interim Report Q4 2005 - Orders received, margins and dividend - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  3. Slide 3: Key figures

    Key figures October – December 2005 z Orders received up 23% z Net sales up 4% z Adjusted EBITA MSEK 535 (466) - Negative currency effect MSEK 21 January – December 2005 z Orders received up 15% z Net sales up 7% z Adjusted EBITA MSEK 1,766 (1,695) - Negative currency effect MSEK 133 Proposed divide

  4. Slide 4: Orders received (at constant exchange rates)

    Orders received (at constant exchange rates) % Q on Q SEK million R 12 30 21 000 25 18 000 20 15 000 15 12 000 10 9 000 5 6 000 0 3 000 -5 0 Q104 Q404 Q205 Q103 Q203 Q303 Q403 Q204 Q304 Q305 Q105 Q405 = rolling twelve months value © Alfa Laval = % development compared withSlide the4 same quarter the

  5. Slide 5: Order analysis

    Order analysis Oct – Dec 05 2004 (SEK million) 3,771 Structural change, % + 5 Currency effects,% +10 Organic development, % + 18 Total, % + 33 2005 (SEK million) 5,020 © Alfa Laval Slide 5 www.alfalaval.com

  6. Slide 6: Adjusted EBITA / margin

    Adjusted EBITA / margin * SEK million 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 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison

  7. Slide 7: Interim Report Q4 2005

    Interim Report Q4 2005 - Orders received, margins and dividend - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  8. Slide 8: Highlights

    Highlights October – December 2005 z Record order to Saudi Arabia, MSEK 230 Plate heat exchangers for central cooling in a petrochemical plant plant Delivery in 2007 © Alfa Laval Slide 8 www.alfalaval.com

  9. Slide 9: Highlights

    Highlights October – December 2005 z Record order to Saudi Arabia, SEK 230 million Plate heat exchangers for central cooling in a petrochemical plant plant Delivery in 2007 z Order to Kuwait, SEK 100 million Plate heat exchangers to clean crude oil Delivery in 2007 © Alfa Laval Slide 9 www.alfalaval

  10. Slide 10: Highlights

    Highlights October – December 2005 z Record order to Saudi Arabia, SEK 230 million Plate heat exchangers for central cooling in a petrochemical plant plant Delivery in 2007 z Order to Kuwait, SEK 100 million Plate heat exchangers to clean crude oil Delivery in 2007 z High yield bond redeemed Cost of

  11. Slide 11: Interim Report Q4 2005

    Interim Report Q4 2005 - Orders received, margins and dividend - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  12. Slide 12: Orders received by Segment

    Orders received by Segment October – December 2005, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel + + Fluids & Utility Life Science + OEM Process Industry + − Sanitary Energy & Environment + Food + © Alfa Laval Slide 12 www.alfalaval.com

  13. Slide 13: Process Industry

    Process Industry Æ High activity in the Middle East. Æ T50 - new high capacity heat exchanger successful in central cooling applications. Æ Investments in Refinery and Aromatics in Asia generates strong demand for Packinox products. Æ Many bio diesel and fuel ethanol projects. Requires plate heat ex

  14. Slide 14: Orders received by Segment

    Orders received by Segment January – December 2005, at constant rates = Comfort & Refrigeration Parts & Service + + Marine & Diesel Life Science+ + Fluids & Utility + OEM Process Industry + − Sanitary Energy & Environment + Food − © Alfa Laval Slide 14 www.alfalaval.com

  15. Slide 15: Interim Report Q4 2005

    Interim Report Q4 2005 - Orders received, margins and dividend - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  16. Slide 16: Orders received by Region

    Orders received by Region October – December 2005, at constant rates Other 2 L. A No rd mer i ic 1 No +1 % 1% ca 4 r th Am er +6 +34 +37 % ica 13 % +38 Western Europe 34 % Asia 27 % Cen -26 tr . & Eas t 9 % © Alfa Laval Slide 16 www.alfalaval.com

  17. Slide 17: Highlights Americas

    Highlights Americas October – December 2005, at constant rates North America z Good development of base sales. z High activity in fuel ethanol. +6 Latin America z Fewer large contracts in the quarter compared with Q4 2004. z Food in Argentina, Brazil and Peru strong. -26 z Process Industry in Mexico

  18. Slide 18: Highlights Europe

    Highlights Europe October – December 2005, at constant rates Western Europe incl. Nordic +1 z Best performance from Parts & Service, Process Industry +34 +37 and Oil & Gas. z Most sub-regions above last year. Central and Eastern Europe z Very good investment climate. z Russia, Ukraine and Poland str

  19. Slide 19: Highlights Asia

    Highlights Asia October – December 2005, at constant rates Asia z China and Japan remain strong. z Early signs of slowdown in shipbuilding, particularly in Korea. +38 z The strong investment climate in the Middle East continues. © Alfa Laval Slide 19 www.alfalaval.com

  20. Slide 20: Orders received by Region

    Orders received by Region January – December 2005, at constant rates Other 2 L. A No r di m c er ic -5 % 10 a No % 5% r th Am +11 +15 +16 eri ca +26 1 5% Western Europe 30 % Centr . +11 Asia 29 % & East 8% © Alfa Laval Slide 20 www.alfalaval.com

  21. Slide 21: Interim Report Q4 2005

    Interim Report Q4 2005 - Orders received, margins and dividend - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group

  22. Slide 22: Highlights

    Highlights SEK million Oct – Dec 05 Order intake 5,020 Net sales 4,684 Adjusted EBITA 535 Adjusted EBITA- EBITA- margin 11.4 % © Alfa Laval Slide 22 www.alfalaval.com

  23. Slide 23: Adjusted EBITA

    Adjusted EBITA SEK million Q4 FY 2004 466 1,695 2005 535 1,766 Deviation 69 71 FX. translation + 34 + 35 FX. transaction - 55 -168 Deviation excl FX 90 204 © Alfa Laval Slide 23 www.alfalaval.com

  24. Slide 24: Gross profit margin

    Gross profit margin In percent of sales 50 40 35.0 33.9 33.4 30 20 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 © Alfa Laval Slide 24 www.alfalaval.com

  25. Slide 25: Highlights

    Highlights SEK million Oct – Dec 05 Order intake 5,020 Net sales 4,684 Adjusted EBITA 535 Adjusted EBITA- EBITA- margin 11.4 % Profit before tax 276 includes cost for redemption of high- high-yield bond SEK 89 million © Alfa Laval Slide 25 www.alfalaval.com

  26. Slide 26: Taxes

    Taxes Jan - Dec SEK million 2005 Profit after financial items, SEK million 1,099 - taxes, 32% average - 352 Major adjustment items - loss carry forwards - deferred tax assets + 174 - loss countries etc. Taxes according to P&L 171 - in % of PBT 15.6 Note: Average tax rate going forward 32% © Alfa Lav

  27. Slide 27: Earnings per share

    Earnings per share Q4 Jan - Dec 2005 2004* 2005 2004* Earnings 2.73 1.89 7.92 7.12 Earnings, excluding step- step-up 3.31 2.08 9.83 8.67 *IFRS © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Highlights

    Highlights SEK million Oct – Dec 05 Order intake 5,020 Net sales 4,684 Adjusted EBITA 535 Adjusted EBITA- EBITA- margin 11.4 % Profit before tax 276 includes cost for redemption of high- high-yield bond SEK 89 million Cash flow from operating activities 838 ROCE 22.7 % Excl. step- step-up and goodwi

  29. Slide 29: Cash-flow statement

    Cash-flow statement Q4 Jan - Dec SEK million 2005 2004 2005 2004 Cash flows from - operating activities 838 268 1,616 1,203 - investing activities - 93 - 146 -665 36 Financial net paid - 174 - 80 -351 -201 Dividends - - -557 -447 Total 570 42 43 591 Pro Forma Free- Free-cash cash--flow* 544 16 942 6

  30. Slide 30: Order backlog as per December 31, 2005

    Order backlog as per December 31, 2005 Contracts above EUR 0.5 million MSEK 2000 1500 1000 For 2005 For 2006 500 1,035 1,725 0 2004 2005 © Alfa Laval Slide 30 www.alfalaval.com

  31. Slide 31: Foreign exchange

    Foreign exchange Forecasted impact on adjusted EBITA from Fx Fx.. fluctuations H1 H2 WY H1 H2 WY SEK million 2005 2005 2005 2006 2006 2006 Translation effect - 7 + 42 + 35 0 0 0 Transaction effect - 74 - 94 - 168 - 4 + 45 + 41 Total - 81 - 52 - 133 - 4 + 45 + 41 2006 impact based on EUR/USD 1.20 and

  32. Slide 32: Interim Report Q4 2005

    Interim Report Q4 2005 - Orders received, margins and dividend - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  33. Slide 33: Outlook for the near future

    Outlook for the near future “In most of the markets, geographical as well as customer segments, that Alfa Laval serves a continued very strong demand is expected.” © Alfa Laval Slide 33 www.alfalaval.com

  34. Slide 34: www.alfalaval.com

    © Alfa Laval Slide 34 www.alfalaval.com

Alfa Laval — Q4 2005 Earnings Presentation on 6ix