Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Q2 2009 Earnings Presentation

34 slides from Alfa Laval Ab's earnings presentation, 2009

  1. Slide 1: Alfa Laval

  2. Slide 2: Report for Q2 2009

    Report for Q2 2009 - Orders received and margins - 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 April – June 2009 Orders received dropped 37.3% to SEK 5,188 million. Net sales down 15.1% at SEK 6,746 million. Adjusted EBITA down 25.9% at SEK 1,175 million. - Positive currency effect SEK 74 million. January – June 2009 Orders received dropped 34.4% to SEK 11,041 million. Net sales d

  4. Slide 4: 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 +35% +36% +13% -37% +17% -32% +40% Q307 +30% +9% -15% +8% -3% 0% 1 000 4 000 0 0 Q107 Q209 Q206 Q108 Q306 Q407 Q406 Q207 Q208 Q109 Q408 Q308 = rolling twelve months

  5. Slide 5: Order analysis

    Order analysis April – June 2009 2008 (SEK millions) 7,066 Structural change, % + 2.1 Currency effects,% +10.7 Organic development, % -39.4 Total, % - 26.6 2009 (SEK million) 5,188 © Alfa Laval Slide 5 www.alfalaval.com

  6. Slide 6: Organic development

    Organic development % 7 000 Marine Marine cancellations orders -73% Orders - 1.6% 6 000 other - 12.9% segments -26% - 24.9% 5 000 4 000 Q2 08 Q2 09 © Alfa Laval Slide 6 www.alfalaval.com

  7. Slide 7: Adjusted EBITA / margin

    Adjusted EBITA / margin * SEK millions 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 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step s

  8. Slide 8: Interim Report Q2 2009

    Interim Report Q2 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  9. Slide 9: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 105 million (210) Order for enzyme production in the U.S. Order value SEK 50 million. Delivery in 2010. © Alfa Laval Slide 9 www.alfalaval.com

  10. Slide 10: Highlights during the quarter

    Highlights during the quarter Large orders, total SEK 105 million (210) Order for enzyme production in the U.S. Refinery orders from Petrobras in Brazil Value SEK 55 million. Delivery in 2011. © Alfa Laval Slide 10 www.alfalaval.com

  11. Slide 11: Interim Report Q2 2009

    Interim Report Q2 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  12. Slide 12: Orders received by customer segment

    Orders received by customer segment April – June 2009, at constant rates Life Science = − Comfort & Refrigeration Process Industry − − Marine & Diesel Energy & Environment − − Fluids & Utility Food − − OEM − Sanitary Parts & Service − © Alfa Laval Slide 12 www.alfalaval.com

  13. Slide 13: Orders received by customer segment: Process Technology Division

    Orders received by customer segment Process Technology Division April – June 2009, at constant rates Life Science = Process Industry − Energy & Environment − Food − Continued growth for Environment. Low activity in Process Industry. Food, Life Science grew vs first quarter. © Alfa Laval Slide 13 www

  14. Slide 14: Orders received by customer segment: Equipment Division

    Orders received by customer segment Equipment Division, April - June 2009, at constant rates Comfort & Ref and Sanitary − Comfort & improved from first quarter. Refrigeration Continued decline for Marine. − Marine & Diesel − Fluids & Utility − OEM − Sanitary © Alfa Laval Slide 14 www.alfalaval.com

  15. Slide 15: Orders received by customer segment, January-June 2009

    Orders received by customer segment January – June 2009, at constant rates Life Science − − Comfort & Refrigeration Process Industry − − Marine & Diesel Energy & Environment − − Fluids & Utility Food − − OEM − Sanitary Parts & Service − © Alfa Laval Slide 15 www.alfalaval.com

  16. Slide 16: Interim Report Q2 2009

    Interim Report Q2 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  17. Slide 17: Orders received by Region

    Orders received by Region April – June 2009, at constant rates % eri ca 5 No rth -26 Am L. Am eric -35 Oth -25 -29 er 2 a % 17 -51 % 30 % Asia pe 28 % o rn Eur Ce ste We -47 ntr Nordic 10 .& Ea st %8 % © Alfa Laval Slide 17 www.alfalaval.com

  18. Slide 18: Highlights Americas

    Highlights Americas April – June 2009, at constant rates North America -25 U.S. order intake on about the same level as in the first quarter. Latin America All countries declined except Mexico. Demand in the region on about the -47 same level as in the first quarter. © Alfa Laval Slide 18 www.alfala

  19. Slide 19: Highlights Europe

    Highlights Europe April – June 2009, at constant rates -26 -35 Western Europe incl. Nordic -29 All segments, except Life Science, dropped. Central and Eastern Europe Overall decline with the exception of Energy & Environment, which grew compared to last year. © Alfa Laval Slide 19 www.alfalaval.com

  20. Slide 20: Highlights Asia

    Highlights Asia April – June 2009, at constant rates -51 Asia Continued negative effect from Marine. Base business, excluding Marine, up slightly compared to the two previous quarters. © Alfa Laval Slide 20 www.alfalaval.com

  21. Slide 21: Orders received by Region, January-June 2009

    Orders received by Region January – June 2009, at constant rates % eri ca 5 No rth -21 Am L. Am eric -32 Oth -24 -25 er 2 a % 17 -48 % 30 % Asia pe 28 % o rn Eur Ce ste We -45 ntr Nordic 10 .& Ea st %8 % © Alfa Laval Slide 21 www.alfalaval.com

  22. Slide 22: Interim Report Q2 2009

    Interim Report Q2 2009 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group

  23. Slide 23: Highlights

    Highlights SEK millions April – June 2009 Order intake 5,188 Net sales 6,746 © Alfa Laval Slide 23 www.alfalaval.com

  24. Slide 24: Gross profit margin

    Gross profit margin In percent of sales 50 40 43.5 37.3 39.3 37.7 30 20 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 © Alfa Laval Slide 24 www.alfalaval.com

  25. Slide 25: Highlights

    Highlights SEK millions April – June 2009 Order intake 5,188 Net sales 6,746 Adjusted EBITA 1,175 Adjusted EBITA-margin 17.4% Profit before tax 846 © Alfa Laval Slide 25 www.alfalaval.com

  26. Slide 26: Overview cost and capacity adjustment

    Overview cost and capacity adjustment - update as per June 30th, 2009 Total non-recurring charges: SEK 495 m Non-recurring charges Q2: SEK 225 m Total estimated savings: SEK 850 m Savings achieved in Q2: SEK 170 m - Savings from January program – full impact from Q4 2009 - Savings from further measu

  27. Slide 27: Earnings per share

    Earnings per share April – June Jan – June 2009 2008 2009 2008 Earnings 1.49 2.41 3.29 4.47 Earnings, excluding step-up 1.62 2.49 3.55 4.68 © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Highlights

    Highlights SEK millions April – June 2009 Order intake 5,188 Net sales 6,746 Adjusted EBITA 1,175 Adjusted EBITA-margin 17.4% Profit before tax 846 Cash flow from operating activities 1,295 ROCE 42.5% ROE 32.8% © Alfa Laval Slide 28 www.alfalaval.com

  29. Slide 29: Cash-flow statement

    Cash-flow statement Jan – June Jan - June SEK millions 2009 2008 Cash flow from - operating activities 2,353 1,929 - investing activities - 1,336 -687 Financial net paid -188 -63 Total 829 1,179 Pro Forma Free-cash-flow* 1,967 732 *Incl. operating activities, capital expenditure and financial net pa

  30. Slide 30: Foreign exchange

    Foreign exchange Estimated impact on adjusted EBITA from FX fluctuations SEK million Q2 09 H1 09 WY 09 WY 10* Translation effect 153 298 465 - Transaction effect - 79 - 100 10 500 Total 74 198 475 500 *Based on EUR/USD 1. 40 and EUR/SEK 10.75 © Alfa Laval Slide 30 www.alfalaval.com

  31. Slide 31: Order backlog as per June 30

    Order backlog as per June 30 SEK millions 18000 15,622 16000 14,573 6,589 13,624 14000 6,059 5,313 12000 10000 8000 6000 4000 2000 8,514 9,033 8,311 0 2007 2008 2009 For delivery next year or later For delivery during rest of current year © Alfa Laval Slide 31 www.alfalaval.com

  32. Slide 32: Interim Report Q2 2009

    Interim Report Q2 2009 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  33. Slide 33: Outlook for the third quarter

    Outlook for the third quarter “We expect demand during the third quarter to be on about the same level as during the second quarter 2009.” © Alfa Laval Slide 33 www.alfalaval.com

  34. Slide 34: www.alfalaval.com

    © Alfa Laval Slide 34 www.alfalaval.com

Alfa Laval — Q2 2009 Earnings Presentation on 6ix