Alfa Laval Slide 1 www.alfalaval.com
Interim Report Q2 2008 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Key figures April June 2008 Orders received up 8.1% at SEK 7,066 million. Net sales rose 16.8% to SEK 6,855 million. Adjusted EBITA up 40% at SEK 1,585 million. - Negative currency effect SEK 88 million. January June 2008 Orders received up 8.3% at SEK 14,499 million. Net sales up 19.9% at SEK 13,122 million. Adjusted EBITA up 52% at SEK 2,995 million. - Negative currency effect SEK 132 million. Alfa Laval Slide 3 www.alfalaval.com
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 1 000 0 4 000 0 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 +9% +25% +23% +28% +35% +17% +40% +36% +13% +30% 0% +9% +8% = rolling twelve months value +xx% = % development at constant rates by = order intake per quarter quarter year on year Alfa Laval Slide 4 www.alfalaval.com
Order analysis April June 08 2007 (SEK millions) Structural change, % Currency effects,% Organic development, % Total, % 2008 (SEK million) 6,822 + 2.9-4.5 + 5.2 + 3.6 7,066 Alfa Laval Slide 5 www.alfalaval.com
Adjusted EBITA / margin * SEK millions and in percent of sales 1 800 1 575 1 350 1 125 900 675 450 225 24,0 21,0 18,0 15,0 12,0 9,0 6,0 3,0 0 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 0,0 * Adjusted EBITA Earnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items. Alfa Laval Slide 6 www.alfalaval.com
Interim Report Q2 2008 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Highlights during the quarter Large orders, total SEK 210 million (240) Process equipment to ethanol plants in Brazil. Order value SEK 90 million. Delivery mainly during 2008. Alfa Laval Slide 8 www.alfalaval.com
Highlights during the quarter Large orders, total SEK 210 million (240) Process equipment to ethanol plants in Brazil. Air heat exchanger order from Brazil. Order value SEK 60 million. Delivery mainly during 2008. Alfa Laval Slide 9 www.alfalaval.com
Highlights during the quarter Large orders, total SEK 210 million (240) Process equipment to ethanol plants in Brazil. Air heat exchanger order from power plants in Brazil. Plate heat exchanger to Chinese petrochemical company. Order value SEK 60 million. Delivery scheduled for 2009. Alfa Laval Slide 10 www.alfalaval.com
Highlights during the quarter Acquisitions U.S. company Standard Refrigeration. Leading supplier of shell-and and-tube heat exchangers for refrigeration, air- conditioning and industrial applications. Annual sales of about SEK 220 million in 2007. 185 employees. Alfa Laval Slide 11 www.alfalaval.com
Highlights during the quarter Acquisitions U.S. company Standard Refrigeration. 45 percent stake in Swedish company Ageratec. Provider of innovative process solutions for the biodiesel industry. Estimated sales of SEK 80 million in 2008. Alfa Laval Slide 12 www.alfalaval.com
Interim Report Q2 2008 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Orders received by Segment April June 2008, at constant rates Parts & Service + = Comfort & Refrigeration Life Science + + Marine & Diesel Process Industry + Fluids & Utility Energy & Environment Food + + OEM Sanitary Alfa Laval Slide 14 www.alfalaval.com
Orders received by Segment The Process Technology Division, April June 2008, at constant rates Life Science Process Industry Energy & Environment Food + + + Very good quarter for Food Technology Continued low activity level in bio-fuels Alfa Laval Slide 15 www.alfalaval.com
Orders received by Segment The Equipment Division, April June 2008, at constant rates Continued good growth in Marine & Diesel OEM improved towards end of quarter Sanitary affected by lower dairy investments = + + Comfort & Refrigeration Marine & Diesel Fluids & Utility OEM Sanitary Alfa Laval Slide 16 www.alfalaval.com
Vegetable oil Food Tech Increased margins have brought forward investment programs. Concern for food safety is increasing natural vegetable oils contain no trans-fatty acids. India and China are experiencing a sharp increase in demand. Alfa Laval Slide 17 www.alfalaval.com
Orders received by Segment January June 2008, at constant rates Parts & Service + = Comfort & Refrigeration Life Science + Marine & Diesel Process Industry Energy & Environment Food + + + Fluids & Utility OEM Sanitary Alfa Laval Slide 18 www.alfalaval.com
Interim Report Q2 2008 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Orders received by Region April June 2008, at constant rates -17-2 -4-17 L. America 6 % L. America 6 % North America 13 % Other 2 % Other 2 % +49 Western Europe 26 % Asia 35 % +13 Centr.. & East 8 % Nordic 10 % Alfa Laval Slide 20 www.alfalaval.com
Orders received by Region April June 2008, at constant rates -17-2 -4-17 L. America 6 % L. America 6 % +49 North America 13 % Other 2 % Other 2 % Western Europe 26 % Asia 35 % +13 Centr.. & East 8 % Nordic 10 % Alfa Laval Slide 21 www.alfalaval.com
Highlights Americas April June 2008, at constant rates North America Decline for Process Technology division, mainly due to drop in orders for ethanol applications Growth for base business -17 Latin America Best growth in Refrigeration and Marine & Diesel Brazil boosted by growth in Energy & Environment and Process Industry +13 Alfa Laval Slide 22 www.alfalaval.com
Highlights Europe April June 2008, at constant rates Western Europe incl. Nordic Base business on same level as last year Increase for Parts & Service Central and Eastern Europe Large orders weren t repeated Ukraine and Central Europe showed best overall development -2-4 -17 Alfa Laval Slide 23 www.alfalaval.com
Highlights Asia April June 2008, at constant rates Asia Best growth in South Korea, Middle East and China Marine & Diesel, Process and Food had the strongest development +49 Alfa Laval Slide 24 www.alfalaval.com
Orders received by Region January June 2008, at constant rates -18-3 -2-5 L. America 6 % L. America 6 % +40 North America 13 % Other 2 % Other 2 % Western Europe 25 % Asia 37% +20 Centr.. & East 8% Nordic 9 % Alfa Laval Slide 25 www.alfalaval.com
Interim Report Q2 2008 - Orders received and margins - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Thomas Thuresson CFO Alfa Laval Group
Highlights SEK millions Order intake Net sales April June 08 7,066 6,855 Alfa Laval Slide 27 www.alfalaval.com
Gross profit margin 50 In percent of sales 40 36.3 37.3 39.3 43.5 30 20 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Alfa Laval Slide 28 www.alfalaval.com
Highlights SEK millions Order intake Net sales Adjusted EBITA Adjusted EBITA-margin Profit before tax April June 08 7,066 6,855 1,585 23.1% 1,456 Alfa Laval Slide 29 www.alfalaval.com
Earnings per share April - June 2008 2007 Jan. - June 2008 2007 Earnings 2.41 1.62 4.47 2.65 Earnings, excluding step-up 2.49 1.73 4.68 2.89 Alfa Laval Slide 30 www.alfalaval.com
Equity and shares June 30 Repurchased shares for cancellation Percentage of outstanding shares 1,452,400 0.3 Implemented AGM resolutions: Cancellation of 4.3 million old shares Restricted equity unchanged after cancellation Split = 4 new for 1 old Alfa Laval Slide 31 www.alfalaval.com
Highlights SEK millions Order intake Net sales Adjusted EBITA Adjusted EBITA-margin Profit before tax Cash flow from operating activities ROCE ROE April June 08 7,066 6,855 1,585 23.1% 1,456 1,200 59.5% 50.8% Alfa Laval Slide 32 www.alfalaval.com
Cash-flow statement SEK millions Cash flows from - operating activities - investing activities Financial net paid Total Jan - June 2008 1,929-687 - 63 1179 Jan - June 2007 1,038-849 -162 27 Pro Forma Free-cash cash-flow* 1,607 732 *Incl. operating activities, capital expenditure (excl. product rights), provisions and financial net paid. Alfa Laval Slide 33 www.alfalaval.com
Foreign exchange Estimated impact on adjusted EBITA from Fx.. fluctuations SEK million Q2 08 H1 08 WY 08* WY 09* Translation effect Transaction effect Total - 56-32 - 88-80 - 52-132 - 100-195 - 295 - - 190-190 *Based on EUR/USD 1.59 and EUR/SEK 9.40 Alfa Laval Slide 34 www.alfalaval.com
Order backlog as per June 30 SEK millions 18000 16000 14000 14,573 15,622 12000 10000 8000 11,083 4,486 6,059 6,589 6000 4000 2000 0 6,597 8,514 2006 2007 9,033 2008 For delivery next year or later For delivery during rest of current year Alfa Laval Slide 35 www.alfalaval.com
Interim Report Q4 2007 - Orders received and operating margin - Highlights - Development per segment - Geographical development - Financials - Outlook Mr. Lars Renström President and CEO Alfa Laval Group
Outlook for the near future Alfa Laval expects the demand to remain on the current high level. Alfa Laval Slide 37 www.alfalaval.com
Alfa Laval Slide 38 www.alfalaval.com