Alfa Laval Ab · OMXSTO:ALFA

Alfa Laval Ab — Q3 2005 Earnings Presentation

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

  1. Slide 1: www .alfalaval.com

    © Alf a Lav al Slide 1 www .alfalaval.com

  2. Slide 2: Interim Report Q3 2005

    Interim Report Q3 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 July – September 2005 z Orders received up 25% z Net sales up 10% z Adjusted EBITA MSEK 479 (426) - Negative currency effect MSEK 31 January – September 2005 z Orders received up 13% z Net sales up 8% z Adjusted EBITA MSEK 1,231 (1,229) - Negative currency effect MSEK 112 © Alf a Lav al

  4. Slide 4: Orders received

    Orders received % Q on Q SEK million R 12 30 21 000 25 18 000 20 15 000 15 12 000 10 9 000 5 6 000 0 3 000 -5 0 Q402 Q304 Q404 Q103 Q203 Q303 Q403 Q104 Q204 Q105 Q205 Q305 = rolling twelve months value © Alf a Lav al = % development compared withSlide the4same quarter the year before www .alfalaval.

  5. Slide 5: Order analysis

    Order analysis July – Sep 05 2004 (SEK million) 3,866 Structural change, % + 2 Currency effects,% + 2 Organic development, % + 23 Total, % + 27 2005 (SEK million) 4,918 © Alf a Lav al 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 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 * Adjusted EBITA – ”Earnings bef ore interests, taxes, amortization of goodwill an d step up v alues and comparis

  7. Slide 7: Interim Report Q3 2005

    Interim Report Q3 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  8. Slide 8: Highlights

    Highlights July – September 2005 z Agreement to acquire Tranter PHE © Alf a Lav al Slide 8 www .alfalaval.com

  9. Slide 9: Highlights

    Highlights July – September 2005 z Agreement to acquire Tranter PHE z A couple of big orders Qatar (Natural gas) MSEK 120 2006 The Middle East (Central cooling) MSEK 100 2007 Brazil (Oil & Gas) MSEK 75 2007 © Alf a Lav al Slide 9 www .alfalaval.com

  10. Slide 10: Highlights

    Highlights July – September 2005 z Agreement to acquire Tranter PHE z A couple of big orders Qatar (Natural gas) MSEK 120 2006 The Middle East (Central cooling) MSEK 100 2007 Brazil (Oil & Gas) MSEK 75 2007 z Strong order intake from marine for deliveries in 2007 and 2008 © Alf a Lav al Slide 10 www

  11. Slide 11: Interim Report Q3 2005

    Interim Report Q3 2005 - 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 Segment

    Orders received by Segment July – September 2005, at constant rates + Comfort & Refrigeration Parts & Service + + Marine & Diesel + Life Science + Fluids & Utility Process Industry − + OEM Energy & Environment + − Sanitary Food + © Alf a Lav al Slide 12 www .alfalaval.com

  13. Slide 13: Energy

    Energy Very strong demand Æ More than doubled order intake in Q3 compared with Q3 2004 Æ Strong demand in all geographical areas Æ Alfa Laval well positioned in a number of application areas, including the addition of Packinox Æ Main topic during Alfa Laval’ Laval’s Capital Markets Day in Copenhagen

  14. Slide 14: Orders received by Segment

    Orders received by Segment January – September 2005, at constant rates = Comfort & Refrigeration Parts & Service + + Marine & Diesel = Life Science + Fluids & Utility + OEM Process Industry + − Sanitary Energy & Environment + Food − © Alf a Lav al Slide 14 www .alfalaval.com

  15. Slide 15: Interim Report Q3 2005

    Interim Report Q3 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  16. Slide 16: Orders received by Region

    Orders received by Region July – September 2005, at constant rates Ot her 2 % L. A m Nor di eric a c -7 8% No rt hA 5 me +21 +29 +21 % ri c a 15 +33 % Western Europe 30 % Cen Asia 32 % +29 t r. & E as t 8 % © Alf a Lav al Slide 16 www .alfalaval.com

  17. Slide 17: Highlights Americas

    Highlights Americas July – September 2005, at constant rates North America z Continued growth in US, particularly in energy applications +21 z All segments above 2004, except Sanitary and Food Latin America z Very strong investment climate, especially in Brazil (Oil & Gas) +29 z Strong development i

  18. Slide 18: Highlights Europe

    Highlights Europe July – September 2005, at constant rates Western Europe incl. Nordic z All regions above 2004, except -7 Nordic and Mideurope z Energy & Environment, Process +29 +21 Industry and Marine strong Central and Eastern Europe z Significant project orders in Russia z Very strong developme

  19. Slide 19: Highlights Asia

    Highlights Asia July – September 2005, at constant rates Asia z China and Japan continues to be very strong +33 z Local presence in the Middle East gives market advantages z Marine orders in Korea. © Alf a Lav al Slide 19 www .alfalaval.com

  20. Slide 20: Orders received by Region

    Orders received by Region January – September 2005, at constant rates Ot her 2 % L. A No r di m er c1 -7 ica 0% No 5% rth Am +11 +8 +11 eri ca +22 16 % Western Europe 29 % Centr. +38 Asia 30 % & Eas t 8% © Alf a Lav al Slide 20 www .alfalaval.com

  21. Slide 21: Interim Report Q3 2005

    Interim Report Q3 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Thomas Thuresson - Outlook CFO Alfa Laval Group

  22. Slide 22: Highlights

    Highlights SEK million July – Sep 05 Order intake 4,918 Net sales 4,278 Adjusted EBITA 479 Adjusted EBITA- EBITA- margin 11.2 % © Alf a Lav al Slide 22 www .alfalaval.com

  23. Slide 23: Adjusted EBITA

    Adjusted EBITA SEK million Q3 05 Q1 - Q3 05 2004 426 1,229 2005 479 1,231 Deviation 53 2 FX. translation + 8 + 1 FX. transaction - 39 - 113 Deviation excl FX 84 114 © Alf a Lav al Slide 23 www .alfalaval.com

  24. Slide 24: Gross profit margin

    Gross profit margin In percent of sales 50 38.5 40 35.3 35.1 30 20 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 © Alf a Lav al Slide 24 www .alfalaval.com

  25. Slide 25: Gross profit margin

    Gross profit margin In percent of sales, excluding FX- FX-transactions Q305 50 38.5 40 36.0 35.1 30 20 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 © Alf a Lav al Slide 25 www .alfalaval.com

  26. Slide 26: Highlights

    Highlights SEK million July – Sep 05 Order intake 4,918 Net sales 4,278 Adjusted EBITA 479 Adjusted EBITA- EBITA- margin 11.2 % Profit before tax 405 Including gain on sale of property, SEK 47 million © Alf a Lav al Slide 26 www .alfalaval.com

  27. Slide 27: Earnings per share

    Earnings per share Q3 Jan - Sep 2005 2004* 2005 2004* Earnings 2.54 2.05 5.19 5.23 Earnings, excluding step- step-up 2.99 2.51 6.52 6.59 *IFRS © Alf a Lav al Slide 27 www .alfalaval.com

  28. Slide 28: Highlights

    Highlights SEK million July – Sep 05 Order intake 4,918 Net sales 4,278 Adjusted EBITA 479 Adjusted EBITA- EBITA- margin 11.2 % Profit before tax 405 Including gain on sale of property, SEK 47 million Cash flow from operating activities 485 ROCE 21.1 % Excl. step- step-up and goodwill approx. 52.2%

  29. Slide 29: Cash-flow statement

    Cash-flow statement Q3 Jan - Sep SEK million 2005 2004 2005 2004 Cash flows from - operating activities 485 433 779 935 - investing activities - 28 209 -572 182 Financial net paid - 64 - 53 -177 -121 Dividends - - -557 -447 Total 393 589 -527 549 Pro Forma Free- Free-cash cash--flow* 335 279 397 597

  30. Slide 30: Redemption of high yield bond

    Redemption of high yield bond Expected call- call-back on November 15, 2005 SEK million Q4 2005 Buy back, penalty interest - 63 Capitalized financing cost, - 21 write off Non recurring financial cost in Q4 2005 - 84 © Alf a Lav al Slide 30 www .alfalaval.com

  31. Slide 31: Foreign exchange

    Foreign exchange Estimated impact on adjusted EBIT A from Fx Fx.. fluctuations Q3 Jan-- Sep Jan WY WY SEK million 2005 2005 2005* 2006* Translation effect + 8 + 1 0 0 Transaction effect - 39 - 113 - 165 + 32 Total - 31 - 112 - 165 + 32 *Based on EUR/USD 1.21 and EUR/SEK 9.25 © Alf a Lav al Slide 31

  32. Slide 32: Interim Report Q3 2005

    Interim Report Q3 2005 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials Mr. Lars Renströ Renström - Outlook President and CEO Alfa Laval Group

  33. Slide 33: Outlook for the near future

    Outlook for the near future Alfa Laval is expecting … …a continued demand on the same high level as year-to-date. …that the current high price level for some raw materials will remain, at least short term. © Alf a Lav al Slide 33 www .alfalaval.com

  34. Slide 34: NE

    NE

Alfa Laval — Q3 2005 Earnings Presentation on 6ix