Today s program Capital Market Day, September 7, 2003 Introduction Sigge Haraldsson Parts & Service in the Process Technology division Ulf Granstrand and Mikael Carleson Equipment division - selling to multiple sales channels Svante Karlsson and Ole Petersen Logistics and manufacturing Göran Mathiasson Financials Thomas Thuresson Questions and Answers Questions and Answers Sigge Haraldsson Alfa Laval Slide 2 www.alfalaval.com
Summary Interim Report Q2 2004 Mr. Sigge Haraldsson President and CEO Alfa Laval Group
Highlights Q204 Order intake: Net sales: 4,174 MSEK 3,798 MSEK Alfa Laval Slide 4 www.alfalaval.com
Q on Q vs. last year (excl FX) Order intake 18% 14% 10% 6% 2% Q3 2003 Q4 2003 Q1 2004 Q2 2004 Alfa Laval Slide 5 www.alfalaval.com
Highlights Q204 Order intake: Net sales: 4,174 MSEK 3,798 MSEK Adjusted EBITA / margin: 420 MSEK / 11.1 % Alfa Laval Slide 6 www.alfalaval.com
Adjusted EBITA MSEK 2003 2004 Deviation FX. translation FX. transaction Deviation excl FX Q2 412 420 8 10 65 83 H1 734 803 69 30 113 212 * Adjusted EBITA Earnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items. Alfa Laval Slide 7 www.alfalaval.com
Adjusted EBITA / margin * MSEK and in percent of sales 700 600 500 400 300 200 100 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0 Q301 Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 0,0 * Adjusted EBITA Earnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items. Alfa Laval Slide 8 www.alfalaval.com
Gross profit margin 50 In percent of sales 40 39.2% 35.8% Pricing & volume leverage approx. 0.7% = 39.2% Sales mix approx. 1.0% = 38.5% FX approx. 1.7% = 37.5% 30 20 Q301 Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Alfa Laval Slide 9 www.alfalaval.com
Further strengthen profitability Raw material... two price increases Price pressure. less than 12 months ago Incentive. increased focus on profit Assertiveness.. price increase created new level Volume leverage. high level of factory utilization Alfa Laval Slide 10 www.alfalaval.com
Highlights Q204 Order intake: Net sales: 4,174 MSEK 3,798 MSEK Adjusted EBITA / margin: 420 MSEK / 11.1 % Profit before tax: 259 MSEK Alfa Laval Slide 11 www.alfalaval.com
Highlights Q204 H104 Order intake: Net sales: 4,174 MSEK 3,798 MSEK Adjusted EBITA / margin: 420 MSEK / 11.1 % Profit before tax: 259 MSEK Adjusted EBITA / margin: 803 MSEK / 11.5 % Alfa Laval Slide 12 www.alfalaval.com
Highlights Q204 H104 Order intake: Net sales: 4,174 MSEK 3,798 MSEK Adjusted EBITA / margin: 420 MSEK / 11.1 % Profit before tax: 259 MSEK Adjusted EBITA / margin: 803 MSEK / 11.5 % Profit before tax: 470 MSEK Cash flow from operating activities: 519 MSEK ROCE: 22.5 % Alfa Laval Inc. was co-defendant in 143 asbestos-related lawsuits with approximately 21,200 plaintiffs. Alfa Laval Slide 13 www.alfalaval.com
Orders received by Segment + Comfort & Refrigeration Parts & Service + + Marine & Diesel Life Science Process Industry + + + + Fluids & Utility OEM Energy & Environment + + Sanitary Food + January June 2004 Alfa Laval Slide 14 www.alfalaval.com
Orders received by Region Nordic 13 % Other 2 % L. America 3 % Asia Asia 26 % Western Europe 31 % Centr.. && East East 88 %% North North America America 16 16 % January June 2004 + + + + + + + Alfa Laval Slide 15 www.alfalaval.com
Outlook 2004 Alfa Laval is expecting a very strong increase in orders received during the full year 2004. that the EBITA-margin, excluding exchange rate variations, will continue to improve. Alfa Laval Slide 16 www.alfalaval.com
Update on key initiatives Mr. Sigge Haraldsson President and CEO Alfa Laval Group
AlfaNova - 12 months after New markets Available today in four sizes Pace of 14 000 units/year Launch of one more size within short Alfa Laval Slide 18 www.alfalaval.com
AlfaCond - 12 months after High interest and quick acceptance from the market Pace of 60 units/year Second size introduced Alfa Laval Slide 19 www.alfalaval.com
Cleaning of crankcase gases New innovative solution to separate fluids and solids from gases Require manufacturers of diesel engines to clean also the crankcase gases A cooperation with Haldex resulted in Alfdex, a jointly owned company Alfa Laval Slide 20 www.alfalaval.com
The Alfdex initiative Most of the engine manufacturers have already done their initial tests. Estimated market potential of BnSEK 1 per year Letter of intent from Scania Alfa Laval Slide 21 www.alfalaval.com
Organic and acquired growth Existing products Customer segments New market concepts 1 3 5 All six gears should give us an annual average growth of 5% over a business cycle. 2 4 6 Market-driven R&D Parts & Service New core products Alfa Laval Slide 22 www.alfalaval.com
Profit generation through market penetration Mr. Sigge Haraldsson President and CEO Alfa Laval Group
Financial Targets Volume growth 5% EBITA 12-15% ROCE > 20% V Alfa Laval Slide 24 www.alfalaval.com
Our Mission To optimise the performance of our customers processes. Time and time again. V Alfa Laval Slide 25 www.alfalaval.com
Customer focus Beverage Biochemical Brewery Chemical Engineering Fish and meat processing Food processing Heating and ventilation Marine Mining Oil and gas Pharmaceutical Power generation Refrigeration Steelworks Starch Sugar Vegetable oil Water and waste water treatment Alfa Laval Slide 26 www.alfalaval.com
Focus on customer segments 10 Customer Segments 2001 Alfa Laval Slide 27 www.alfalaval.com
A customer segment offers Single products Product packages Added value; modules, systems, new products and service contracts Process knowledge and expertise Alfa Laval Slide 28 www.alfalaval.com
Focus on customer segments P&S Comfort & Refrigeration Marine & Diesel Equipment division To offer a range of high-performance products and solutions for customers who have a well-defined and regular need. A multiple sales channel strategy to reach end-users. Sanitary OEM Sales H104 Fluids & Utility Alfa Laval Slide 29 www.alfalaval.com
Focus on customer segments Equipment division To offer a range of high-performance products and solutions for customers who have a well-defined and regular need. A multiple sales channel strategy to reach end-users. Sales H104 Channel sales End-user sales Alfa Laval Slide 30 www.alfalaval.com
Focus on customer segments Life Science P&S Process Industry Food Energy & Environment Process Technology division To offer unique solutions helping customers to optimize their processes. Our scope includes everything from components to systems. Sales H104 Alfa Laval Slide 31 www.alfalaval.com
Focus on customer segments Food Energy & Environment Process Technology division To offer unique solutions helping customers to optimize their processes. Our scope includes everything from components to systems. Process Industry Life Science Sales H104 Capital sales After sales Alfa Laval Slide 32 www.alfalaval.com
Today s program Capital Market Day, September 7, 2003 Introduction Sigge Haraldsson Parts & Service in the Process Technology division Ulf Granstrand and Mikael Carleson Equipment division - selling to multiple sales channels Svante Karlsson and Ole Petersen Logistics and manufacturing Göran Mathiasson Financials Thomas Thuresson Questions and Answers Questions and Answers Sigge Haraldsson Alfa Laval Slide 33 www.alfalaval.com