Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q4 2004 Earnings Presentation
18 slides from Alfa Laval Ab's earnings presentation, 2005
Slide 1: Alfa Laval
Slide 2: Interim Report Q4 2004 Key figures
Interim Report Q4 2004 - Orders received and margins - Development per segment - Geographical development - Financials - Priorities and outlook Mr. Lars Renströ Renström President and CEO Alfa Laval Group Key figures October – December 2004 z Orders received up 5% z Net sales up 6% z Adjusted EBITA
Slide 3: Orders received / Order analysis
Orders received Q on Q vs. last year excl FX % 20 15 10 5 0 -5 -10 Q103 Q104 Q102 Q203 Q303 Q403 Q204 Q202 Q302 Q402 Q304 Q404 © Alfa Laval Slide 4 www.alfalaval.com Order analysis MSEK Oct- Oct-Dec Jan- Jan-Dec 2003 3,750 14,145 Structural change, % - +1 Currency,% -4 -4 Organic development, % +5 +
Slide 4: 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 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison distort
Slide 5: Orders received by Segment
Interim Report Q4 2004 - Orders received and margins - Development per segment - Geographical development - Financials - Priorities and outlook Mr. Lars Renströ Renström President and CEO Alfa Laval Group Orders received by Segment October – December 2004, at constant rates = Comfort & Refrigeration
Slide 6: Highlights – Process Industry / Orders by Segment
Highlights – Process Industry Ethanol z About MSEK 200 z Base business doubled since 2001 z Mandatory blending z Continued good demand in the U.S. and Asia © Alfa Laval Slide 10 www.alfalaval.com Orders received by Segment January – December 2004, at constant rates + Comfort & Refrigeration Parts &
Slide 7: Orders received by Region
Interim Report Q4 2004 - Orders received and margins - Development per segment - Geographical development - Financials - Priorities and outlook Mr. Lars Renströ Renström President and CEO Alfa Laval Group Orders received by Region October – December 2004, at constant rates Other 2 % L. A No rdic mer
Slide 8: Highlights Americas / Highlights Europe
Highlights Americas October – December 2004, at constant rates North America z About the same as 2003 z US above 2003 z Strong Parts & Service -4 Latin America z Very strong growth in Brazil z Increased demand in Energy & Environment and Process Industry z Good development in Parts & Service +87 © A
Slide 9: Highlights Asia / Orders received by Region
Highlights Asia October – December 2004, at constant rates Asia z Double digit growth in China - Marine still strong z Strong growth in Parts & Service z Less contract orders in India +4 © Alfa Laval Slide 16 www.alfalaval.com Orders received by Region January – December 2004, at constant rates Othe
Slide 10: Update: Asbestos-related lawsuits
Update Asbestos- Asbestos-related lawsuits in the United States z In the fourth quarter approximately 5,700 plaintiffs were transferred transferred to a federal court and are considered inactive by this court. z Most of the insurance carriers have confirmed that they will provide provide coverage fo
Slide 11: Highlights / Adjusted EBITA
Highlights MSEK Q4 Q1 – Q4 Order intake 3,771 15,740 Net sales 4,166 14,986 Adjusted EBITA 466 1,695 Adjusted EBITA- EBITA-margin 11.2 % 11.3 % © Alfa Laval Slide 20 www.alfalaval.com Adjusted EBITA MSEK Q4 Q1 – Q4 2003 463 1,627 2004 466 1,695 Deviation 3 68 FX. translation 15 57 FX. transaction 83
Slide 12: Gross profit margin
Gross profit margin In percent of sales 50 40 36.9 33.9 33.4 30 20 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 © Alfa Laval Slide 22 www.alfalaval.com Gross profit margin In percent of sales, excluding FX- FX-transaction effects Q404 50 40 36.9 33.9 35.4 30 20 Q102 Q202 Q302 Q402 Q10
Slide 13: Highlights / Earnings per share
Highlights MSEK Q4 Q1 – Q4 Order intake 3,771 15,740 Net sales 4,166 14,986 Adjusted EBITA 466 1,695 Adjusted EBITA- EBITA-margin 11.2 % 11.3 % Profit before tax 303 1,070 © Alfa Laval Slide 24 www.alfalaval.com Earnings per share 2004 2003 Earnings 5.40 5.78 Earnings excluding 8.67 9.34 goodwill an
Slide 14: Highlights / Cash-flow statement
Highlights MSEK Q4 Q1 – Q4 Order intake 3,771 15,740 Net sales 4,166 14,986 Adjusted EBITA 466 1,695 Adjusted EBITA- EBITA-margin 11.2 % 11.3 % Profit before tax 303 1,070 Cash flow from operating activities 302 1,118 ROCE - 24.3 % Excl. step- step-up and goodwill appr. appr. 60% © Alfa Laval Slide
Slide 15: Implementation of IFRS
Implementation of IFRS Influences the following areas z Goodwill will not be amortised – impairment testing z Minority interest reported under separate heading within equity. equity. z IAS 39 – impact as of the opening balance for 2005. © Alfa Laval Slide 28 www.alfalaval.com P&L if IFRS had been im
Slide 16: Foreign exchange
Foreign exchange Estimated impact on adjusted EBITA from Fx. Fx. fluctuations MSEK 2004 WY 05* Translation effect - 57 - 40 Transaction effect - 265 - 160 Total - 322 - 200 *Based on EUR/USD 1.32 and EUR/SEK 9.00 © Alfa Laval Slide 30 www.alfalaval.com Interim Report Q4 2004 - Orders received and ma
Slide 17: Priorities within existing strategy / Financial Targets
Priorities within existing strategy z Reinforced focus on profitability z Presence in China, India and Russia z Time V to market z Aftermarket z Acquisitions © Alfa Laval Slide 32 www.alfalaval.com Financial Targets Growth 5% EBITA 10 - 13% ROCEV > 20% © Alfa Laval Slide 33 www.alfalaval.com © Alfa
Slide 18: Dividend policy / Outlook for the near future
Dividend policy The target is a dividend of 40-50 percent of net income, adjusted for step-up depreciations calculated over a business cycle. V The Board of Directors proposes a dividend of 4.75 SEK per share for 2004 © Alfa Laval Slide 34 www.alfalaval.com Outlook for the near future Alfa Laval is