Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q4 2007 Earnings Presentation
38 slides from Alfa Laval Ab's earnings presentation, 2008
Slide 1: Alfa Laval
Slide 2: Interim Report Q4 2007
Interim Report Q4 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 3: Key figures
Key figures October – December 2007 z Orders received up 0% to SEK 6,576 million. z Net sales up 21% to SEK 7,220 million. z Adjusted EBITA up 65% SEK 1,675 million. - Negative currency effect SEK 44 million. January – December 2007 z Orders received up 18% to SEK 27,553 million. z Net sales up 29%
Slide 4: Proposed dividend, repurchase and split
Proposed dividend, repurchase and split Proposed dividend for 2007 z The Board of Directors proposes a dividend of 9:00 SEK (6:25). Proposed mandate for repurchase of shares z The Board of Directors proposes a new mandate for repurchase of up to 5 percent of the issued shares with the intention to c
Slide 5: 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 +30% 0% Q106 +28% Q107 +36% Q405 +23% Q207 +13% Q305 +25% Q206 +35% Q404 + 5% + 5% Q306 +17% Q406 +40% Q205 + 9% 1 000 4 000 0 0 Q307 Q407 Q105 = rolling twelve mont
Slide 6: Order analysis
Order analysis Oct – Dec 07 2006 (SEK million) 6,672 Structural change, % + 1 Currency effects,% - 2 Organic development, % 0 Total, % - 1 2007 (SEK million) 6,576 © Alfa Laval Slide 6 www.alfalaval.com
Slide 7: Adjusted EBITA / margin
Adjusted EBITA / margin * SEK million and in percent of sales 1 800 24,0 1 575 21,0 1 350 18,0 1 125 15,0 900 12,0 675 9,0 450 6,0 225 3,0 0 0,0 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up
Slide 8: Interim Report Q4 2007
Interim Report Q4 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 9: Highlights during the quarter
Highlights during the quarter Acquisitions during 2007 – add 4% annual sales z Finnish company Fincoil, turnover SEK 375 million. Manufactures and markets air heat exchangers predominantly for industrial cooling and refrigeration. The company has 150 employees. © Alfa Laval Slide 9 www.alfalaval.com
Slide 10: Highlights during the quarter
Highlights during the quarter Large orders, total SEK 160 million (680) z Clean technology to Canada. Order value SEK 50. Delivery during 2008 and 2009. © Alfa Laval Slide 10 www.alfalaval.com
Slide 11: Highlights during the quarter
Highlights during the quarter Large orders z Clean technology to Canada. z Energy recovery in natural gas production in South East Asia. Total value SEK 110 million. Delivery during 2008 and 2009. © Alfa Laval Slide 11 www.alfalaval.com
Slide 12: Highlights during the quarter
Highlights during the quarter Legislation drives development of clean technologies z Orders for seven ballast water treatment systems. Combined the orders are worth about SEK 25 million. Deliveries during 2008 and 2009. © Alfa Laval Slide 12 www.alfalaval.com
Slide 13: Large orders 2007
Large orders 2007 SEK million Country Application Industry Delivery 50 Canada Water treatment Environment 2008 180 China Evaporation Pulp and paper 2007 55 China Processing Food 2007 50 Vietnam (Various) Marine 2007-2008 100 USA/Taiwan Central cooling Oil refining 2008 50 Belgium Processing Bio etha
Slide 14: Interim Report Q4 2007
Interim Report Q4 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 15: Orders received by Segment
Orders received by Segment October – December 2007, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel Life Science − Process Industry − + Fluids & Utility − OEM Energy & Environment + + Sanitary Food − © Alfa Laval Slide 15 www.alfalaval.com
Slide 16: Orders received by Segment
Orders received by Segment The Process Technology Division, October – December 2007, at constant rates and for comparable units z Weak start, we ended the quarter well. z Strong base business in all segments. Life Science − z Recovery in the Energy & Environment segment. Process Industry − Energy &
Slide 17: Orders received by Segment
Orders received by Segment The Equipment Division, October – December 2007, at constant rates and for comparable units + Comfort & Refrigeration z Continued strong markets for the Marine & Diesel segment. z Weak market for + Marine & Diesel heat pumps (OEM). z Good demand + Fluids & Utility from foo
Slide 18: Air heat exchangers
Air heat exchangers Building a strong position ● Two complementary acquisitions during 2007: Helpman (the Netherlands) and Fincoil (Finland). ● Now no 2 on the European market for industrial refrigeration, a market with an estimated potential of SEK 5.5 billion. ● Markets with structural growth - in
Slide 19: Orders received by Segment
Orders received by Segment January – December 2007, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel Life Science − + Fluids & Utility Process Industry + + OEM Energy & Environment = + Sanitary Food + © Alfa Laval Slide 19 www.alfalaval.com
Slide 20: Interim Report Q4 2007
Interim Report Q4 2007 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 21: Orders received by Region
Orders received by Region October – December 2007, at constant rates Other 2 % N L. A m ordi c 10 % erica +20 No rth Am 6% -17 -12 +7 er i ca 16 +7 % Western Europe 23 % Ce +37 ntr .& Asia 33 % Ea st 10 % © Alfa Laval Slide 21 www.alfalaval.com
Slide 22: Highlights Americas
Highlights Americas October – December 2007, at constant rates North America z Substantially lower order intake for the bio ethanol application. -17 z Base business up 5 percent. Latin America z Good development in all segments - strongest in Comfort & Refrigeration +37 and Energy & Environment. z B
Slide 23: Highlights Europe
Highlights Europe October – December 2007, at constant rates Western Europe incl. Nordic +20 z The Equipment Division in line with Q4 2006, despite a downturn -12 +7 in the heat pump market. z Best development in the Nordic and Iberica regions. Central and Eastern Europe z Stable growth in both divi
Slide 24: Highlights Asia
Highlights Asia October – December 2007, at constant rates Asia z Best development in Food, Energy & Environment and +7 Marine & Diesel. z India, China and South East Asia showed the strongest growth. © Alfa Laval Slide 24 www.alfalaval.com
Slide 25: Orders received by Region
Orders received by Region January – December 2007, at constant rates Other 2% N L. A ord me ic 10 +19 rica No % rth Am 6% +8 er +15 +10 ica 16 +28 % Western Europe 26 % Ce +51 nt Asia 31% r. & Ea st 9% © Alfa Laval Slide 25 www.alfalaval.com
Slide 26: Interim Report Q4 2007
Interim Report Q4 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 Oct – Dec 07 Order intake 6,576 Net sales 7,220 © Alfa Laval Slide 27 www.alfalaval.com
Slide 28: Gross profit margin
Gross profit margin In percent of sales 50 40 40.9 38.9 35.0 33.4 30 20 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 © Alfa Laval Slide 28 www.alfalaval.com
Slide 29: Highlights
Highlights SEK million Oct – Dec 07 Order intake 6,576 Net sales 7,220 Adjusted EBITA 1,675 Adjusted EBITA-margin 23.2% Profit before tax 1,587 © Alfa Laval Slide 29 www.alfalaval.com
Slide 30: Earnings per share
Earnings per share Oct – Dec Full year 2007 2006 2007 2006 Earnings 9.66 4.34 28.48 15.10 Earnings, excluding step-up 10.15 4.89 30.55 17.23 © Alfa Laval Slide 30 www.alfalaval.com
Slide 31: Repurchase of shares
Repurchase of shares Mandate to repurchase 10 percent of the issued shares Q4 07 YTD 07 Number of repurchased shares 343,650 3,602,539 Percentage of outstanding shares 0.3 3.2 Decrease of equity capital* 132 1,497 *In parent company and in the Group (SEK millions) © Alfa Laval Slide 31 www.alfalaval
Slide 32: Highlights
Highlights SEK million Oct – Dec 07 Order intake 6,576 Net sales 7,220 Adjusted EBITA 1,675 Adjusted EBITA-margin 23.2% Profit before tax 1,587 Cash flow from operating activities 1.250 ROCE 54.2% ROE 44.1% © Alfa Laval Slide 32 www.alfalaval.com
Slide 33: Cash-flow statement
Cash-flow statement Jan – Dec Jan – Dec SEK million 2007 2006 Cash flows from - operating activities 3,264 2,619 - investing activities - 1,676 -1,577 Financial net paid - 244 - 115 Dividends - 715 - 599 Total 629 327 Pro Forma Free-cash-flow* 2,464 2,132 *Incl. operating activities, capital expendi
Slide 34: Foreign exchange
Foreign exchange Impact on adjusted EBITA from Fx. fluctuations SEK million Q4 07 WY 07 WY 08* Translation effect - 37 - 147 0 Transaction effect - 7 - 107 - 140 Total - 44 - 254 - 140 *Based on EUR/USD 1.45 and EUR/SEK 9.45 for open exposures © Alfa Laval Slide 34 www.alfalaval.com
Slide 35: Order backlog as per December 31
Order backlog as per December 31 SEK millions 16000 14,730 14000 12,359 3,298 12000 2,344 10000 8000 7,497 1,368 6000 4000 6,129 10,015 11,432 2000 0 2005 2006 2007 © Alfa Laval Slide 35 www.alfalaval.com For delivery during next year For delivery later than next year
Slide 36: Interim Report Q4 2007
Interim Report Q4 2007 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renström - Outlook President and CEO Alfa Laval Group
Slide 37: Outlook for the near future
Outlook for the near future “Alfa Laval expects the demand to remain on the current high level.” © Alfa Laval Slide 37 www.alfalaval.com
Slide 38: www.alfalaval.com
© Alfa Laval Slide 38 www.alfalaval.com