Capital Markets Day 2009 - Alfa Laval€¦ · Today’s program Capital Markets Day, November 17, 2009 • Business update and Q&A Lars Renström, Alex Syed and Thomas Thuresson Trends,

Capital Markets Day 2009Capital Markets Day 2009

www.alfalaval.com

Lars RenströmLars RenströmPresident and CEOPresident and CEO

Today’s program Today’s program

Capital Markets Day, November 17, 2009Capital Markets Day, November 17, 2009

•• Business update and Q&ABusiness update and Q&ALars Renström, Alex Syed and Thomas ThuressonLars Renström, Alex Syed and Thomas Thuresson

Trends, opportunities & productsTrends, opportunities & products

•• IntroductionIntroductionLars RenströmLars Renström

••

LunchLunch

www.alfalaval.com© Alfa Laval Slide 3

•• Equipment DivisionEquipment DivisionBusiness update incl trends, opportunities & productsBusiness update incl trends, opportunities & productsSusanne Pahlén Åklundh and Peter CarlbergSusanne Pahlén Åklundh and Peter Carlberg

•• Process Technology DivisionProcess Technology DivisionBusiness update incl trends, opportunities & productsBusiness update incl trends, opportunities & productsSvante Karlsson, Hans Dahlén and Sammy HulpiauSvante Karlsson, Hans Dahlén and Sammy Hulpiau

•• Q&A and final remarksQ&A and final remarksLars RenströmLars Renström

approx 16.40approx 16.40

CoffeeCoffee

4 000

5 000

6 000

7 000

8 000

16 000

20 000

24 000

28 000

32 000

SEK millionSEK million

Orders receivedOrders receivedSEK million R 12SEK million R 12


0

1 000

2 000

3 000

4 000

0

4 000

8 000

12 000

16 000

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q10

9Q

109

Q20

6Q

206

Q30

6Q

306

Q40

6Q

406

Q10

7Q

107

Q20

7Q

207

Q30

7Q

307

Q40

7Q

407

Q10

8Q

108

Q20

8Q

208

+35%

+35%

+17%

+17%

+40%

+40%

+36%

+36%

+13%

+13%

+30%

+30%

0%

0%

+9%

+9%

+8%

+8%

= % development at constant rates by = % development at constant rates by quarter, year on yearquarter, year on year

+xx%+xx%

--3%

3%

Q30

8Q

308

Q40

8Q

408

--15%

15%

--32%

32%

Q20

9Q

209

--37%

37%

Q10

6Q

106

Q40

5Q

405

Q30

5Q

305

+28%

+28%

+23%

+23%

+25%

+25%

Q30

9Q

309

--30%

30%

Orders received by RegionOrders received by RegionSequential development Q3 versus Q2, Sequential development Q3 versus Q2, at constant ratesat constant rates

--1212

--33+35+35

+8+8


+50+50

1 125

1 350

1 575

1 800

15,0

18,0

21,0

24,0

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

Adjusted EBITA / margin *Adjusted EBITA / margin *


0

225

450

675

900

0,0

3,0

6,0

9,0

12,0

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

Q108Q108 Q109Q109Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q208Q208 Q308Q308 Q408Q408 Q209Q209 Q309Q309

20 000

25 000

30 000

35 000

Number of shareholdersNumber of shareholders

www.alfalaval.com

5 000

10 000

15 000

2005 2006 2007 2008 H1 2009

© Alfa Laval Slide 7

� Focus areas in the down turn

� After the downturn


Overview cost and capacity adjustment Overview cost and capacity adjustment --update as per September 30update as per September 30thth, 2009, 2009

Total estimated savings: SEK > 900 mSavings achieved in Q3: SEK 220 m

- Savings from January program – full impact from Q4 2009- Savings from further measures – full impact from Q1 2010

Capacity reduction targeted with initiated savings: 25 - 35 %

www.alfalaval.com

Total estimated reduction in FTE’s: 1,700Reductions as per September 30th 1,150- of which work-sharing represents approx. 80 FTE’s

Aftermarket potentialAftermarket potential

x 4x 4

x 1x 1--77Multiple*Multiple*

Plate heat exchangersPlate heat exchangers

SeparatorsSeparators

www.alfalaval.com

x 1.5x 1.5DecantersDecanters

*) *) Value in the aftermarket in relation to new sales Value in the aftermarket in relation to new sales

x 1x 1--2.52.5Pumps & ValvesPumps & Valves

1 914

2 235

2 143

1 7501 800

2 000

2 200

2 400 P&S headcount developmentP&S headcount development

Investment in the aftermarketInvestment in the aftermarket

+35%+35%


1 750

1 663

1 200

1 400

1 600

1 800

2005 2006 2007 2008 2009E

Resilience in an economic downturnResilience in an economic downturnA wellA well--positioned company with a large installed basepositioned company with a large installed base

Parts & Servicesales 20-29%


Capital sales 71-80 %

MSEKMSEK

400400

500500

600600

800800Investments in R&DInvestments in R&D

700700

+65%+65%

Higher portion of new productsHigher portion of new products


20042004 20052005 20062006 20072007 2008200800

100100

200200

300300

400400

2009E2009E

More new customer valuesMore new customer values


Higher portion of new productsHigher portion of new productsDecanterDecanter portfolio portfolio –– LaunchLaunch of new of new productsproducts

20072006

2008

2005

2009 2010

www.alfalaval.com© Alfa LavalSlide 15

Launches

Product Centre DecantersProduct Centre DecantersNewness Newness –– Gross MarginGross Margin

NS Last 5 Years & OlderNS Last 5 Years & Older

L5Y

www.alfalaval.com

Q4

06

Q1

07

Q2

07

Q3

07

Q4

07

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

L5Y

Older

Product Centre Welded HEProduct Centre Welded HENewness more than doubled between 2006 & 2008Newness more than doubled between 2006 & 2008

60%

80%

100%

www.alfalaval.comSlide 17

0%

20%

40%

2006 2007 2008 2009E 2010E

Complementary acquisitionsComplementary acquisitions

� During 2005-2009 added 4% annual sales growth

� Continue to add 3-4% of annual sales growth

www.alfalaval.com

� Continue to acquire companies that complement Alfa Laval in terms of geography, channels or products

Acquisition strategyAcquisition strategyAcquisitions since 2007Acquisitions since 2007

ProductProduct

ChannelChannel


Annual Sales MSEK 2,500Exclusive of Alfa Laval India (64 → 89%)

ChannelChannel

� Focus areas in the down turn

� After the downturn


Alfa Laval’s positionAlfa Laval’s positionNo. 1 in all three product areasNo. 1 in all three product areas


33--4% acquired 4% acquired growth p.a.growth p.a.

ExcellentExcellentglobalglobal

presencepresence

Environment FoodEnergy

Structural demandStructural demand-- LongLong--term growth term growth driversdrivers


GlobalizationGlobalizationImproved living Improved living standardstandard

EnergyEnergy EnvironmentEnvironment

PetrochemicalsPetrochemicals

OpportunitiesOpportunitiesOil and gas Oil and gas

E&PE&P

RefiningRefining BiofuelsBiofuels PowerPower

Tar SandsTar Sands Gas to LiquidsGas to LiquidsLNGLNG Coal Gasification/ Coal Gasification/ COCO Sequestration Sequestration

www.alfalaval.com

Tar SandsTar Sands Gas to LiquidsGas to LiquidsLNGLNG Coal Gasification/ Coal Gasification/

LiquefactionLiquefaction

COCO22 Sequestration Sequestration

and Storageand Storage

“After the downturn”“After the downturn”“After a downturn the strong always “After a downturn the strong always

come out stronger.come out stronger.

We have taken the opportunity to We have taken the opportunity to

acquire some competitors and weakened acquire some competitors and weakened

the ones that survive the downturn.the ones that survive the downturn.


When people are growing, the company When people are growing, the company

will grow.”will grow.”Lars RenströmLars Renström

President and CEOPresident and CEO

at Alfa Laval’s Top Management Conference at Alfa Laval’s Top Management Conference

May, 2009May, 2009


Documents

Capital Markets Day 2009 - Alfa Laval€¦ · Today’s program Capital Markets Day, November 17, 2009 • Business update and Q&A Lars Renström, Alex Syed and Thomas Thuresson Trends,