Alfa Laval AB · OMXSTO:ALFA
Alfa Laval AB — Q2 2019 Earnings Presentation
28 slides from Alfa Laval AB's earnings presentation, Jul 17, 2019
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Slide 2: Report for Q2 2019
Report for Q2 2019 Tom Erixon President and CEO Alfa Laval Group 17/07/2019 | © Alfa Laval 2 | www.alfalaval.com
Slide 3: Key figures
Key figures Q2 2019 Q2 2018 %-change %-▲,org Order intake 10,025 12,062 -17 -16 Net sales 11,339 10,475 8 7 Adjusted EBITA* 1,870 1,698 10 Adjusted EBITA-margin (%) 16.5 16.2 1H 2019 1H 2018 %-change %-▲,org Order intake 22,238 22,087 1 -1 Net sales 21,497 19,326 11 8 Adjusted EBITA** 3,598 3,195 13
Slide 4: Orders received
Orders received SEK million SEK million R 12 14 000 50 000 45 000 12 000 40 000 10 000 35 000 30 000 8 000 25 000 6 000 20 000 +19% +25% -11% -17% +2% 4 000 15 000 10 000 2 000 5 000 0 0 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 = Order intake per quarter “
Slide 5: Adjusted EBITA/margin
Adjusted EBITA/margin* − SEK millions and in percent of sales SEK million Percent of sales 2 000 24,0 1 750 21,0 1 500 16.2 16.5 18,0 15.6 15.8 1 250 15,0 1 000 12,0 750 9,0 500 6,0 250 3,0 0 0,0 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 * Adjusted EBITA – ”Earnings before int
Slide 6: Energy division
Energy division − Highlights and comments MARKETS & ORDER INTAKE Q2 19 Q2 18 YoY %- Q1 19 change • Orders from the hydro carbon chain were overall higher, driven by increased demand for equipment for ORDERS 3,566 3,401 +4.9 3,448 midstream oil & gas. Drilling oscillated at a low level SALES 3,531 3,
Slide 7: Food & Water division
Food & Water division − Highlights and comments MARKETS & ORDER INTAKE Q2 19 Q2 18 YoY %- Q1 19 change • Dairy and waste & water were both flat y-o-y. Brewery showed good growth and edible oil, which ORDERS 3,520 3,589 -1.9 3,480 declined due to fewer larger orders, saw continued SALES 3,335 3,390 -
Slide 8: Marine division
Marine division − Highlights and comments MARKETS & ORDER INTAKE Q2 19 Q2 18 YoY %- Q1 19 • Pumping systems dropped due to fewer product and change chemical tankers being contracted. Offshore declined ORDERS 3,144 4,685 -32.9 4,963 amid fewer large orders, however the market SALES 4,329 3,486 +24.2
Slide 9: Service, by division
Service, by division − Order intake Q2, share and development ENERGY FOOD & WATER MARINE Q219: 26% Q219: 31% Q219: 38% Absolute Absolute Absolute development development development + + + YoY YoY YoY = Service share of total order intake 17/07/2019 | © Alfa Laval 9 | www.alfalaval.com
Slide 10: Divisional sales and profitability
Divisional sales and profitability ENERGY FOOD & WATER MARINE Q2 2019 2018 2019 2018 2019 2018 Sales 3,531 3,215 3,335 3,390 4,329 3,486 Op. profit 558 490 473 507 809 571 Op. margin, % 15.8 15.2 14.2 15.0 18.7 16.4 17/07/2019 | © Alfa Laval 10 | www.alfalaval.com
Slide 11: Orders received by region
Orders received by region − April – June 2019 & development Q2 vs Q2 and 1H vs 1H, at constant rates 2%; -38% / -2% Africa & Oceania 7%; Nordic +27% / +19% 19%; -10% +8% North America -12% / +2% -33% / -11% 23%; Western Europe 5%; Latin America -10% / -25% +29% / -13% 8%; Central- & Eastern Europe 3
Slide 12: Report for Q2 2019
Report for Q2 2019 Jan Allde CFO Alfa Laval Group | © Alfa Laval | www.alfalaval.com
Slide 13: Sales
Sales − MSEK SEK million SEK million R 12 50 000 14 000 11,339 12 000 40 000 10 000 30 000 8 000 6 000 20 000 -0.5% +21% +18% -12% +8% 4 000 10 000 2 000 0 0 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 = Sales per quarter = Rolling 12-months
Slide 14: Gross profit margin
Gross profit margin − In percent of sales 45 Q2 2018 35.4 Mix/price = 40 Load/volume - 35.9 PPV/metals + 36.2 36.4 35.4 FX + 35 Structure = Q2 2019 35.9 30 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 17/07/2019 | © Alfa Laval 14 | www.alfalaval.com
Slide 15: Key figures
Key figures − April – June, SEK million Q2 2019 Q2 2018 Sales 11,339 10,475 Gross profit 3,812 3,441 Sales & Admin -1,772 -1,647 R&D -272 -254 Net other cost/income 39 -86 Operating income 1,808 1,463 Financial net 24 36 Profit before tax 1,832 1,499 Taxes -420 -382 EPS 3.36 2.65 17/07/2019 | © Alfa
Slide 16: Cash-flow statement
Cash-flow statement − SEK Million Q2 Q2 1H 1H 2019 2018 2019 2018 Cash flow from - operating activities 609 1,377 1,584 2,043 - investing activities 203 -240 -291 -350 Financial net paid 41 49 208 -8 Total 853 1,186 1,501 1,685 Pro Forma Free cash-flow* 479 1,109 1,188 1,608 *Incl. operating activit
Slide 17: Foreign exchange
Foreign exchange − Estimated impact on adjusted EBITA from FX fluctuations, in SEK Million Q2 2019 1H 2019 FY 2019 FY 2020* Transaction effect 45 65 225 220 Revaluation 5 25 - - Translation effect 45 100 170 - Total 95 190 395 220 *) Based on EUR/USD 1.167 and EUR/SEK 10.555 Projected FX-effect for
Slide 18: Order backlog as per June 30
Order backlog as per June 30 − SEK billion 24.6 25 21.5 11.0 20 9.2 15 10 13.5 12.3 5 0 1.15 1.12 1.03 1.20 0.88 book to bill Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 = For delivery after 2019 = For delivery this year 17/07/2019 | © Alfa Laval 18 | www.alf
Slide 19: Sales
Sales − FY 2019, SEK billion 1H sales 21.5 Backlog, for delivery current year +13.5 Subtotal 35.0 For you to consider: Price “In-for-out”* FX translation Acquisitions Full year 2019 *IFO Q3-Q4 2018 was SEK 8.7 bln. 17/07/2019 | © Alfa Laval 19 | www.alfalaval.com
Slide 20: Outlook for the third quarter
Outlook for the third quarter: “We expect that demand in the third quarter will be somewhat higher than in the second quarter.” 17/07/2019 | Public © Alfa|Laval Alfa Laval | © 20 | www.alfalaval.com
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Slide 22: Activity split O&G, total
Activity split O&G, total − Distribution of orders Q2 2019 (MSEK) Drilling Processing & Refinery Petrochemicals Transportation (SEQ/YoY) Grand total SEQ/YOY Energy 75 540 238 458 1,311 (+/+) Marine 112 157 0 0 269 (-/-) Alfa Laval = 187 = 697 = 238 = 458 =1,580*(-/-) Share of total Alfa Laval 1.9% 7
Slide 23: Marine Division's industry split
Marine Division’s industry split − Distribution of orders LTM, end of June Marine Offshore oil Environment & Engine power Service and gas Energy, Marine World trade & Oil & gas demand Legislation & Electrical World trade Driver fleet capacity and prices fuel cost power needs 23% 25% Share 2% 8% 42%
Slide 24: Marine Division's industry split
Marine Division’s industry split − Distribution of sales LTM end of June Marine Offshore oil Environment & Engine power Service and gas Energy, Marine World trade & Oil & gas demand Legislation & Electrical World trade Driver fleet capacity and prices fuel cost power needs 26% 34% Share 3% 10% 27% 1
Slide 25: Top ten markets
Top ten markets* − SEK million at prevailing rates United States China Nordic South Korea Japan Adriatic South East Asia Mid Europe Benelux India 0 1000 2000 3000 4000 5000 6000 7000 8000 = Q2 LTM 2019 = WY 2018 *The order intake development of the 2018 top ten markets. 17/07/2019 | © Alfa Laval 25
Slide 26: Organic growth pace
Organic growth pace − Compared with same quarter last year (%), excluding currency effects 30 20 10 0 -10 -20 -30 Q314Q414Q115Q215Q315Q415Q116Q216Q316Q416Q117Q217Q317Q417Q118Q218Q318Q418Q119Q219 = order intake growth 17/07/2019 | © Alfa Laval 26 | www.alfalaval.com
Slide 27: Cautionary statement
Cautionary statement This presentation contains forward-looking statements that are based on the current expectations of the management of Alfa Laval Group. Although management believes that the expectations reflected in such forward- looking statements are based on reasonable assumptions, no assura
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