Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Q1 2005 Earnings Presentation

39 slides from Alfa Laval Ab's earnings presentation, 2005

  1. Slide 1: www.alfalaval.com

    © Alfa Laval Slide 1 www.alfalaval.com

  2. Slide 2: Interim Report Q1 2005

    Interim Report Q1 2005 - 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 January – March 2005 z Orders received: up 5.1% to SEK 4,004 million z Net sales: up 5.6% to SEK 3,268 million z Adjusted EBITA: SEK 330 million (383) - Negative currency effect SEK 42 million © Alfa Laval Slide 3 www.alfalaval.com

  4. Slide 4: Orders received

    Orders received % Q on Q SEK million R 12 25 16 000 20 14 000 15 12 000 10 10 000 5 8 000 0 6 000 -5 4 000 Q202 Q402 Q403 Q104 Q404 Q302 Q103 Q303 Q204 Q304 Q203 Q105 © Alfa Laval Slide 4 www.alfalaval.com

  5. Slide 5: Order analysis

    Order analysis SEK million Jan – Mar 05 2004 3,929 Structural change, % +1 Currency,% - 3 Organic development, % +4 Total, % +2 2005 4,004 © Alfa Laval Slide 5 www.alfalaval.com

  6. Slide 6: Adjusted EBITA / margin

    Adjusted EBITA / margin * SEK million 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 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison

  7. Slide 7: Adjusted EBITA / margin excluding FX-transaction effects

    Adjusted EBITA / margin * SEK million and in percent of sales, excluding FX- FX-transaction effects Q105 700 14,0 600 12,0 500 10,0 400 8,0 300 6,0 200 4,0 100 2,0 0 0,0 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 * Adjusted EBITA – ”Earnings before interests, taxes, amortization of

  8. Slide 8: Interim Report Q1 2005

    Interim Report Q1 2005 - 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

    Highlights January – March 2005 z Acquisition of the French company Packinox © Alfa Laval Slide 9 www.alfalaval.com

  10. Slide 10: Packinox

    Packinox In a nutshell World leader in large welded plate heat exchangers for the hydrocarbon industry. Customer segments: Refineries and Petrochemicals Annual sales (est (est 2005): MSEK 450 Employees: 145 (R&D, manufacturing, sales) © Alfa Laval Slide 10 www.alfalaval.com

  11. Slide 11: The strategic fit

    The strategic fit Co 500 400 Packinox 300 High Perfor- mance - 200 Compabloc, Alfa Rex 100 Alfa Laval Plate Heat Exch. Bar 50 100 150 © Alfa Laval Slide 11 www.alfalaval.com

  12. Slide 12: Highlights

    Highlights January – March 2005 z Acquisition of the French company Packinox z Alfdex-order from Volvo © Alfa Laval Slide 12 www.alfalaval.com

  13. Slide 13: Alfdex-order from Volvo

    Alfdex-order from Volvo z Value: SEK 400 million over five years z Serial deliveries from end of 2005 z All Volvo-brands; Volvo, Renault and Merck © Alfa Laval Slide 13 www.alfalaval.com

  14. Slide 14: Highlights

    Highlights January – March 2005 z Acquisition of the French company Packinox z Alfdex-order from Volvo z Environmentally friendly solutions to Fincantieri © Alfa Laval Slide 14 www.alfalaval.com

  15. Slide 15: Highlights

    Highlights January – March 2005 z Acquisition of the French company Packinox z Alfdex-order from Volvo z Environmentally friendly solutions to Fincantieri z Further optimization of the global manufacturing structure © Alfa Laval Slide 15 www.alfalaval.com

  16. Slide 16: Further optimization of the global manufacturing structure

    Further optimization of the global manufacturing structure z Closure of units in Spain and Canada z Savings: first 12 months: SEK 50 million after that further savings z Total cost SEK 125 million (non-recurring item in first quarter 2005) © Alfa Laval Slide 16 www.alfalaval.com

  17. Slide 17: Interim Report Q1 2005

    Interim Report Q1 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  18. Slide 18: Orders received by Segment

    Orders received by Segment January – March 2005, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel + + Fluids & Utility Life Science + OEM Process Industry + − Sanitary Energy & Environment + Food − © Alfa Laval Slide 18 www.alfalaval.com

  19. Slide 19: Environmental applications create growth

    Environmental applications create growth Example: Applications for the Marine industry Bilge water Ballast water Crank case ventilation © Alfa Laval Slide 19 www.alfalaval.com

  20. Slide 20: Interim Report Q1 2005

    Interim Report Q1 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  21. Slide 21: Orders received by Region

    Orders received by Region January – March 2005, at constant rates Other 2 L. A No rd m ic 1 er ic -18 % 1% a 5% +21 -5 -9 +15 Asia 29 % Western Europe 28 % 8% Cen +62 ica 1 trr.. & E r Ame a st 7 h No r t % © Alfa Laval Slide 21 www.alfalaval.com

  22. Slide 22: Highlights Americas

    Highlights Americas January – March 2005, at constant rates North America z Strong growth z All segments above 2004 except Sanitary +21 Latin America z Continued strong growth in Brazil z Increased demand in all segments within Process Technology Division z High growth in Parts & Service +62 © Alfa

  23. Slide 23: Highlights Europe

    Highlights Europe January – March 2005, at constant rates Western Europe incl. Nordic z MidEurope MidEurope,, Adriatic and Iberia -18 above 2004 -5 -9 z Nordic, Benelux and France below Central and Eastern Europe z Turkey and Ukraine strong z Lower project activity in Russia z Very good growth for P

  24. Slide 24: Highlights Asia

    Highlights Asia January – March 2005, at constant rates Asia z Very strong growth in Japan z Moderate growth in China and India z Continued strong growth +15 in Parts & Service © Alfa Laval Slide 24 www.alfalaval.com

  25. Slide 25: Interim Report Q1 2005

    Interim Report Q1 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group

  26. Slide 26: Highlights

    Highlights SEK million Jan – Mar 05 Order intake 4,004 Net sales 3,268 Adjusted EBITA 330 Adjusted EBITA- EBITA- margin 10.1% © Alfa Laval Slide 26 www.alfalaval.com

  27. Slide 27: Adjusted EBITA

    Adjusted EBITA SEK million Jan – Mar 05 2004 383 2005 330 Deviation -53 FX. translation 9 FX. transaction 33 Deviation excl FX -11 © Alfa Laval Slide 27 www.alfalaval.com

  28. Slide 28: Gross profit margin

    Gross profit margin In percent of sales 50 40.0 39.0 40 37.0 30 20 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 © Alfa Laval Slide 28 www.alfalaval.com

  29. Slide 29: Gross profit margin excluding FX-transaction effects

    Gross profit margin In percent of sales, excluding FX- FX-transaction effects Q105 50 40.0 39.0 38.0 40 30 20 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 © Alfa Laval Slide 29 www.alfalaval.com

  30. Slide 30: Highlights

    Highlights SEK million Jan – Mar 05 Order intake 4,004 Net sales 3,268 Adjusted EBITA 330 Adjusted EBITA- EBITA- margin 10.1% Profit before tax 76 © Alfa Laval Slide 30 www.alfalaval.com

  31. Slide 31: Earnings per share

    Earnings per share IFRS Q1 2005 Q1 2004 Earnings 0.49* 1.38 Earnings excluding 0.93* 1.83 goodwill and step- step-up * Excluding restructuring charge of SEK 125 million an additional 0.75 SEK per share © Alfa Laval Slide 31 www.alfalaval.com

  32. Slide 32: Highlights

    Highlights SEK million Jan – Mar 05 Order intake 4,004 Net sales 3,268 Adjusted EBITA 330 Adjusted EBITA- EBITA- margin 10.1% Profit before tax 76 Cash flow from operating activities 17 ROCE 21.0% Excl. step- step-up and goodwill approx. 55% © Alfa Laval Slide 32 www.alfalaval.com

  33. Slide 33: Cash-flow statement

    Cash-flow statement MSEK Q1 2005 Q1 2004 Cash flows from - operating activities 17 293 - investing activities - 483 - 38 Financial net paid 2 - 44 Dividends - - Total - 464 210 Pro Forma Free- Free-cash cash--flow* - 40 214 *Incl. operating activities, capital expenditure (excl. product rights), pro

  34. Slide 34: Inventory and Advances

    Inventory and Advances Mar 31, 2004 Mar 31, 2005 SEK million Volume & Fx 115 MSEK 4000 Material prices 260 25,0% Component shortage & other 66 3500 Total 441 20,0% 3000 2500 14.6 15,0% 13.9 2000 10,0% 1500 1000 5,0% 500 0 0,0% 0012 0103 0106 0109 0112 0203 0206 0209 0212 0303 0306 0309 0312 0403 040

  35. Slide 35: Accounts Receivable

    Accounts Receivable SEK million 4000 25,0% 3500 20.4 18.3 18.4 18.0 20,0% 3000 17.9 2500 15,0% 2000 10,0% 1500 1000 5,0% 500 0 0,0% 0012 0103 0106 0109 0112 0203 0206 0209 0212 0303 0306 0309 0312 0403 0406 0409 0412 0503 Accounts Receivable Accounts Receivable In percent of net invocing www.alfalav

  36. Slide 36: Foreign exchange

    Foreign exchange Estimated impact on adjusted EBITA from Fx Fx.. fluctuations SEK million Q1 2005 WY 05* Translation effect - 9 - 35 Transaction effect - 33 - 165 Total - 42 - 200 *Based on EUR/USD 1.30 and EUR/SEK 9.10 © Alfa Laval Slide 36 www.alfalaval.com

  37. Slide 37: Interim Report Q1 2005

    Interim Report Q1 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  38. Slide 38: Outlook for the near future

    Outlook for the near future Alfa Laval is expecting … …a continued demand on the present high level. …that the current high price level for some raw materials will remain, at least short term. © Alfa Laval Slide 38 www.alfalaval.com

  39. Slide 39: www.alfalaval.com

    © Alfa Laval Slide 39 www.alfalaval.com

Alfa Laval — Q1 2005 Earnings Presentation on 6ix