Alfa Laval Ab · OMXSTO:ALFA
Alfa Laval Ab — Q4 2002 Earnings Presentation
25 slides from Alfa Laval Ab's earnings presentation, February 2003
Slide 1: Alfa Laval
Slide 2: Interim report Q4 and full year 2002
Interim report Q4 and full year 2002 Mr. Sigge Haraldsson President and CEO Alfa Laval Group Mr. Thomas Thuresson CFO Alfa Laval Group
Slide 3: Highlights
Highlights Q402 z Order intake: 3 501 MSEK z Net sales: 4 175 MSEK © Alfa Laval Slide 3 www.alfalaval.com
Slide 4: Q on Q vs. last year (like for like)
Q on Q vs. last year (like for like) Orders received Net sales 6 6 4 4 2 2 0 0 -2 -2 -4 -4 -6 -6 -8 -8 -10 -10 Q102 Q202 Q302 Q402 2002 Q102 Q202 Q302 Q402 2002 © Alfa Laval Slide 4 www.alfalaval.com
Slide 5: Highlights
Highlights Q402 z Order intake: 3 501 MSEK z Net sales: 4 175 MSEK z Adjusted EBITA / margin: 535 MSEK / 12.8 % © Alfa Laval Slide 5 www.alfalaval.com
Slide 6: 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 Q300 Q400 Q101 Q201 Q301 Q401 Q102 Q202 Q302 Q402 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items.
Slide 7: Highlights
Highlights Q402 z Order intake: 3 501 MSEK z Net sales: 4 175 MSEK z Adjusted EBITA / margin: 535 MSEK / 12.8 % z Profit before tax: 346 MSEK © Alfa Laval Slide 7 www.alfalaval.com
Slide 8: Highlights
Highlights Q402 z Order intake: 3 501 MSEK z Net sales: 4 175 MSEK z Adjusted EBITA / margin: 535 MSEK / 12.8 % z Profit before tax: 346 MSEK 2002 z Adjusted EBITA / margin: 1 755 MSEK / 12.0 % z Profit before tax: 372 MSEK, incl. one-off costs 334 MSEK z Cash flow from operating activities: 1 924 M
Slide 9: Orders Received 2002
Orders Received 2002 Parts & Service + − Comfort & Refrigeration − Marine & Diesel − Fluids & Utility Life Science+ + OEM Process Industry = Energy & Environment − − Sanitary Food + © Alfa Laval Slide 9 www.alfalaval.com
Slide 10: Orders Received 2002
Orders Received 2002 Other 3 % L. A No rdi mer c 1 ica 4 + 3% As -+ ia 23 % % - = - Western Europe 30 % % % 19 + st 8 a ic er + Am Ea th r. & or N Cent © Alfa Laval Slide 10 www.alfalaval.com
Slide 11: Highlights
Highlights Q402 z Order intake: 3 501 MSEK z Net sales: 4 175 MSEK z Adjusted EBITA / margin: 535 MSEK / 12.8 % z Profit before tax: 346 MSEK 2002 z Adjusted EBITA / margin: 1 755 MSEK / 12.0 % z Profit before tax: 372 MSEK, incl. one-off costs 334 MSEK z Cash flow from operating activities: 1 924 M
Slide 12: Asbestos-related lawsuits in the US
Asbestos-related lawsuits in the US z Alfa Laval Inc. was as of February 15, 2003 named co-defendant in a total of 73 asbestos-related lawsuits with a total of approx. 15 000 plaintiffs. z 11 multiple plaintiff lawsuits, filed in Mississippi, account for 99% of all plaintiffs. z Development since No
Slide 13: Highlights
Highlights Q402 z Order intake: 3 501 MSEK z Net sales: 4 175 MSEK z Adjusted EBITA / margin: 535 MSEK / 12.8 % z Profit before tax: 346 MSEK 2002 z Adjusted EBITA / margin: 1 755 MSEK / 12.0 % z Profit before tax: 372 MSEK, incl. one-off costs 334 MSEK z Cash flow from operating activities: 1 924 M
Slide 14: Consolidated Profit and Loss
Consolidated Profit and Loss 1.10- 1.10-31.12 1.10- 1.10-31.12 1.1- 1.1-31- 31-12 1.1- 1.1-31.12 MSEK 2002 2001 2002 2001 Net sales 4 175 4 739 14 595 15 830 Adjusted EBITA 535* 496 1 755 * 1 738 Amortization of goodwill and step-up - 126 - 128 - 507 - 512 Financial net - 62** - 122 - 542** - 1 190
Slide 15: Foreign exchange
Foreign exchange Impact from exchange rate fluctuations in 2002 MSEK Adjusted EBITA Profit Before Tax Translation effect - 80 - 25 Transaction effect - 50 - 50 Sub total - 130 - 75 Realized/unrealized foreign exchange differences in financial net - + 51 Total - 24 © Alfa Laval Slide 15 www.alfalaval
Slide 16: Gross Profit Margin
Gross Profit Margin In percent of sales 50 34.0% 36.7% 38.7% 40 30 20 Q300 Q400 Q101 Q201 Q301 Q401 Q102 Q202 Q302 Q402 © Alfa Laval Slide 16 www.alfalaval.com
Slide 17: "Beyond Expectations"
“Beyond Expectations” >850 775 z Other Projects z BOM & NPR z Org. re-design z Shared Services z Manufacturing ”Target” ”Current pace” In the P&L, MSEK 670 (450) © Alfa Laval Slide 17 www.alfalaval.com
Slide 18: Capital Expenditures 1997 - 2002
Capital Expenditures 1997 - 2002 MSEK 500 405 389 389 400 83 106 132 297 277 300 37 275 27 11 27 103 53 126 91 200 124 65 106 25 43 59 100 159 132 124 157 132 110 0 1997 1998 1999 2000 2001 2002 Machinery EDP Property Other © Alfa Laval Slide 18 www.alfalaval.com
Slide 19: Profit and Loss - Proforma
Profit and Loss - Proforma MSEK Proforma 2002* Actual 2002 EBIT 1 220 1 220 Financial income 359 359 Financial cost - 695 - 902 Comparison distortion items, financial - - 305 Profit after financial items 884 372 Minority interests - 34 - 34 Taxes - 218 - 218 Net income 632 120 Earnings per share (SE
Slide 20: Cash-flow Statement
Cash-flow Statement MSEK 1.1-31.12 2002 1.1-31.12 2001 • EBITDA 2 057 2 144 • Working capital 228 314 • Taxes paid - 396 - 463 • Adjustment for non-oper items 35 4 Cash flows from operating activities 1 924 1 999 • Capital expenditures - 277 - 275 • Divestments 121 618 • Acquisitions - 401* 18 • Pro
Slide 21: Cash-flow Statement, Proforma
Cash-flow Statement,Proforma MSEK Proforma 2002 Actual 2002 Actual 2001 Cash flows from - operating activities 1 924 1 924 1 999 - investing activities - 262* - 548 115 Total: 1 662 1 376 2 114 * Excluding Vendor Note, MSEK –368 and tax guarantee MSEK + 82 © Alfa Laval Slide 21 www.alfalaval.com
Slide 22: Key ratios
Key ratios 2002 ROCE, % 20.2 Per share: z Cash-flow from operating activities, SEK* 17:23 z Profit proforma, SEK* 5:66 Net Debt/Equity, ratio 0.78 * Based on current number of shares, 111 671 991 © Alfa Laval Slide 22 www.alfalaval.com
Slide 23: 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 23 www.alfalaval.com
Slide 24: Toftejorg
1 3 5 Toftejorg 2 4 6 • Annual sales of about 210 MSEK. • Approx. 100 employees in R&D, manufacturing and sales. • Sales companies in Sweden, Norway, Germany, UK, France, USA and Singapore. • Sales by geographical area; Europe 52%, USA/Americas 15%, Asia 33%. • Sales per industry; Marine 39%, Sanita
Slide 25: Outlook 2003
Outlook 2003 “The estimate for the full year 2002 was surpassed. We expect to continue to improve from this level.” © Alfa Laval Slide 25 www.alfalaval.com