© Alfa Laval Slide 1 · Interim Report Q1 2008 Mr. Lars Renström President and CEO Alfa Laval Group - Orders received and margins - Highlights - Development per segment - Geographical

© Alfa Laval Slide 1 www.alfalaval.com

Interim Report Q1 2008Interim Report Q1 2008

Mr. Lars RenstrMr. Lars RenströömmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group

-- Orders received and marginsOrders received and margins-- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Key figures

Orders received up 9% to SEK 7,433 million.Orders received up 9% to SEK 7,433 million.

Net sales up 24% to SEK 6,267 million.Net sales up 24% to SEK 6,267 million.

Adjusted EBITA up 69% SEK 1,410 million. Adjusted EBITA up 69% SEK 1,410 million.

-- Negative currency effect SEK 44 million.Negative currency effect SEK 44 million.

January January –– March 2008March 2008


00

1 0001 000

2 0002 000

3 0003 000

4 0004 000

5 0005 000

6 0006 000

7 0007 000

8 0008 000

00

4 0004 000

8 0008 000

12 00012 000

16 00016 000

20 00020 000

24 00024 000

28 00028 000

32 00032 000

SEK millionsSEK millionsQ

105

Q10

5SEK millions R 12SEK millions R 12

Q20

5Q

205

Orders receivedOrders received

= rolling twelve months value

Q30

5Q

305

= order intake per quarter

Q40

5Q

405

Q10

6Q

106

Q20

6Q

206

Q30

6Q

306

= % development at constant rates by quarter year on year

+ 5

%+

5%

+ 9

%+

9%

+25%

+25%

+23%

+23%

+28%

+28%

+35%

+35%

+17%

+17%

+xx%

+40%

+40%

Q40

6Q

406

Q10

7Q

107

+36%

+36%

Q20

7Q

207

+13%

+13%

+30%

+30%

Q30

7Q

307

Q40

7Q

407

0%0%

Q10

8Q

108

+9%

+9%


Order analysisOrder analysis

2007 2007 (SEK millions)(SEK millions)

Structural change, %Structural change, %Currency effects,%Currency effects,%Organic development, %Organic development, %Total, %Total, %2008 2008 (SEK million)(SEK million)

7,0057,005

Jan Jan –– March 08March 08

7,4337,433

+ + 3 3 -- 3 3 + + 66+ + 6 6


0

225

450

675

900

1 125

1 350

1 575

1 800

0,0

3,0

6,0

9,0

12,0

15,0

18,0

21,0

24,0

SEK millions and in percent of salesSEK millions and in percent of sales

* Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items.”

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q108Q108Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407





Highlights during the quarterHighlights during the quarterLarge orders, total SEK 390 million (435) Large orders, total SEK 390 million (435)

High capacity plate heat exchanger to Middle East.High capacity plate heat exchanger to Middle East.Order value SEK 100 million . Delivery during 2008.Order value SEK 100 million . Delivery during 2008.


Highlights during the quarterHighlights during the quarterLarge ordersLarge orders

High capacity plate heat exchanger to Middle East.High capacity plate heat exchanger to Middle East.

Power order from Middle East.Power order from Middle East.Order value SEK 100 million. Delivery during 2008.Order value SEK 100 million. Delivery during 2008.




Power order in Middle East.Power order in Middle East.

Wins power order in China.Wins power order in China.Order value SEK 50 million. Delivery during 2009.Order value SEK 50 million. Delivery during 2009.





Wins power order in China.Wins power order in China.

Refinery order in Middle East.Refinery order in Middle East.Order value SEK 50 million. Delivery during 2009.Order value SEK 50 million. Delivery during 2009.





Wins power order in China.Wins power order in China.

Refinery order in Middle East.Refinery order in Middle East.

Wins another power order in China.Wins another power order in China.Order value SEK 90 million. Delivery during 2010.Order value SEK 90 million. Delivery during 2010.





Orders received by SegmentOrders received by Segment

Comfort & RefrigerationComfort & Refrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

Parts & ServiceParts & Service

Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

January January –– March 2008, March 2008, at constant ratesat constant rates

+

++

−

+

+

−−

+

−


Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

−

+

−

+

Orders received by SegmentOrders received by SegmentThe Process Technology Division, January The Process Technology Division, January –– March 2008,March 2008,at constant rates and for comparable unitsat constant rates and for comparable units

Best quarter ever!Best quarter ever!

Both Oil & Gas and the Both Oil & Gas and the Power business has Power business has been very good.been very good.

Very low activity level Very low activity level in in biofuelsbiofuels..


Comfort & RefrigerationComfort & Refrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

+

+

+

−

−

Orders received by SegmentOrders received by SegmentThe Equipment Division, January The Equipment Division, January –– March 2008, March 2008, at constant rates and for comparable unitsat constant rates and for comparable units

Continued good growth in both Marine & Diesel and Comfort & Refrigeration

OEM on a lower level due to the heat pump industry in Europe


New New productsproducts

Alfa Laval Phoenix Alfa Laval Phoenix -- new system for treatment of waste water from offshore installatnew system for treatment of waste water from offshore installations ions

+30%+30%





Orders received by RegionOrders received by Region

Centr

Centr . & East 8 %

. & East 8 %

North America 14 %

North America 14 %

Asia 37 %Asia 37 %

L. America 6 %

L. America 6 %

Other 2 %

Other 2 %

Western Europe 24 %Western Europe 24 %

Nordic 9 %

Nordic 9 %

+27+27

+33+33


+10+10--33--1818

--11


Orders received by RegionOrders received by Region

Centr

Centr . & East 8 %

. & East 8 %

North America 14 %

North America 14 %

Asia 37 %Asia 37 %

L. America 6 %

L. America 6 %

Other 2 %

Other 2 %

Western Europe 24 %Western Europe 24 %

Nordic 9 %

Nordic 9 %

+27+27

+33+33


+10+10--33--1818

--11


North AmericaNorth AmericaGood development in Equipment Good development in Equipment division and Parts & division and Parts & ServiceService

Base orders were on the same Base orders were on the same level as last year.level as last year.

Latin AmericaLatin AmericaGood development, especially for Good development, especially for the Process Technology divisionthe Process Technology division

Best growth in Energy & Best growth in Energy & Environment and Process IndustryEnvironment and Process Industry

Highlights AmericasHighlights AmericasJanuary January –– March 2008, March 2008, at constant ratesat constant rates

+27+27

--1818


Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. NordicGood development in Equipment Good development in Equipment division and Parts & Service.division and Parts & Service.

Base business on the same level Base business on the same level as last year.as last year.

Central and Eastern EuropeCentral and Eastern EuropeGood overall growth, especially in Energy & Environment and Parts & Service.Very good development in Russia and Turkey.


+10+10--33

--11


Highlights AsiaHighlights Asia

AsiaAsiaBest growth in Middle East, China Best growth in Middle East, China and India.and India.

Energy & Environment and Marine Energy & Environment and Marine had the strongest development.had the strongest development.


+33+33


Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAlfa Laval GroupAlfa Laval Group



HighlightsHighlights

Order intake Order intake Net salesNet sales

7,4337,4336,2676,267

SEK millionsSEK millions Jan Jan –– Mar 08Mar 08


Gross profit marginGross profit margin

20

30

40

50In percent of salesIn percent of sales

42.942.9

38.938.938.938.9

Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106

37.037.0

Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q108Q108



Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before tax


7,4337,4336,2676,2671,4101,410

22.5% 22.5% 1,2561,256


Earnings per shareEarnings per share

EarningsEarnings

Earnings, excluding stepEarnings, excluding step--upup

20082008

8.268.26

8.778.77

20072007

4.114.11

4.634.63

Jan Jan -- MarMar


Repurchase of sharesRepurchase of sharesMandate to repurchase 10 percent of the issued sharesMandate to repurchase 10 percent of the issued shares

Q1 08Q1 08

1,084,2001,084,2001.01.0367367

Q2 07 Q2 07 –– Q1 08Q1 08

4,686,7394,686,7394.24.2

1,8641,864

Number of repurchased sharesNumber of repurchased sharesPercentage of outstanding sharesPercentage of outstanding sharesDecrease of equity capital*Decrease of equity capital*

*In parent company and in the Group (SEK millions)*In parent company and in the Group (SEK millions)

Proposed AGM resolutions:Proposed AGM resolutions:Cancellation of 4.3 million shares Cancellation of 4.3 million shares New mandate to repurchase up to 5%New mandate to repurchase up to 5%Split = 4 new for 1 oldSplit = 4 new for 1 old



Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before taxCash flow from operating activitiesCash flow from operating activitiesROCEROCEROEROE


7,4337,4336,2676,2671,4101,410

22.5%22.5%1,2561,256

72972957.6%57.6%48.0%48.0%


Cash flows fromCash flows from-- operating activitiesoperating activities-- investing activitiesinvesting activities

Financial Financial netnet paidpaidTotalTotal

CashCash--flow statementflow statement

Pro Forma FreePro Forma Free--cashcash--flow*flow*

*Incl. operating activities, capital expenditure (excl. product *Incl. operating activities, capital expenditure (excl. product rights), provisions and financial net paidrights), provisions and financial net paid. .

SEK millionsSEK millionsQ1Q1

20082008Q1Q1

20072007

729729-- 134134

1616611611

651651

550550-- 146146-- 3232

372372

464464


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effectTransaction effectTransaction effect

TotalTotal

*Based on EUR/USD 1.58 and EUR/SEK 9.35*Based on EUR/USD 1.58 and EUR/SEK 9.35

Estimated impact on adjusted EBITA from Estimated impact on adjusted EBITA from FxFx. fluctuations. fluctuations

Q1 2008Q1 2008

-- 2424-- 2020-- 4444

WY 08*WY 08*

-- 7575-- 160 160 -- 235235

WY 09*WY 09*

---- 225 225 -- 225225


Order backlog as per March 31SEK millionsSEK millions

For delivery during rest of current yearFor delivery during rest of current year

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

5,7255,725

9,818

15,54315,543

5,0515,051

8,780

13,83113,831

2,9402,940

6,893

9,8339,833

For delivery next year or laterFor delivery next year or later

2008200820062006 20072007



-- Orders received and operating margin Orders received and operating margin -- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Outlook for the near futureOutlook for the near future

““Alfa Laval expects the Alfa Laval expects the demand to remain on the demand to remain on the current high level.current high level.””


Documents

© Alfa Laval Slide 1 · Interim Report Q1 2008 Mr. Lars Renström President and CEO Alfa Laval Group - Orders received and margins - Highlights - Development per segment - Geographical