Capital Markets Day 2010 - alfalaval.com · November 23, 2010 in Copenhagen 10:3010:30 Business update and Q&A Business update and Q&A Lars Lars Renström Renström, SvanteSvante

Capital Markets Day 2010Capital Markets Day 2010

www.alfalaval.com

Lars RenströmLars RenströmPresident and CEOPresident and CEO

Alfa Laval GroupAlfa Laval Group

November 23, 2010 in CopenhagenNovember 23, 2010 in Copenhagen

10:3010:30 Business update and Q&ABusiness update and Q&ALars Lars RenströmRenström, , SvanteSvante KarlssonKarlsson, Susanne , Susanne PahlenPahlen ÅklundhÅklundh and Thomas and Thomas ThuressonThuresson

13:15 13:15 Innovative technologies; 5 parallel sessionsInnovative technologies; 5 parallel sessions

-- Heat Transfer, Nish PatelHeat Transfer, Nish Patel

-- Separation, Separation, TorbjörnTorbjörn WestbergWestberg

LunchLunch

Capital Markets Day 2010 Capital Markets Day 2010

www.alfalaval.com© Alfa Laval Slide 3

-- Separation, Separation, TorbjörnTorbjörn WestbergWestberg

-- Quality and safety in the food and pharmaceutical industries, Ole Petersen & Quality and safety in the food and pharmaceutical industries, Ole Petersen & Mats Mats SkogmanSkogman

-- How to turn waste water into pure water, Sammy How to turn waste water into pure water, Sammy HulpiauHulpiau

-- Heat recovery in the process industry, Hans Heat recovery in the process industry, Hans DahlenDahlen

15:55 15:55 Q&A and closing remarksQ&A and closing remarksLars Lars RenströmRenström

SEK millionSEK million

Update from Q3 reportUpdate from Q3 report

Orders receivedOrders receivedSEK million R 12SEK million R 12


= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q10

9Q

109

Q30

6Q

306

Q40

6Q

406

Q10

7Q

107

Q20

7Q

207

Q30

7Q

307

Q40

7Q

407

Q10

8Q

108

Q20

8Q

208

+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%

Q30

9Q

309

--30%

30%

Q40

9Q

409

--12%

12%

--13%

13%

Q11

0Q

110

Q21

0Q

210

+21%

+21%

Q31

0Q

310

+21%

+21%

Update from Q3 report Update from Q3 report

Orders received by RegionOrders received by Region

Asia 33 %Asia 33 %Asia 33 %Asia 33 %

July July –– September 2010, September 2010, at constant ratesat constant rates

--99--99+67+67+67+67

+14+14+14+14

+26+26+26+26

+16+16+16+16


+9+9+9+9

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

Update from Q3 report Update from Q3 report

Adjusted EBITA / margin *Adjusted EBITA / margin *


* 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.”

Q108 Q109 Q409 Q110 Q210 Q310Q307 Q407 Q208 Q308 Q408 Q209 Q309

Highlights so far Q410Highlights so far Q410

�� Petrochemical order in India.Petrochemical order in India.Order value SEK 110 million. Delivery in 2011Order value SEK 110 million. Delivery in 2011


�� Petrochemical order in India.Petrochemical order in India.

�� Acquired Acquired DefinoxDefinox –– leading fluid handling companyleading fluid handling companyIndependent channel to the market with a sales of about SEK 200 million Independent channel to the market with a sales of about SEK 200 million and some 120 employees. Consolidated into the Alfa Laval group from and some 120 employees. Consolidated into the Alfa Laval group from



and some 120 employees. Consolidated into the Alfa Laval group from and some 120 employees. Consolidated into the Alfa Laval group from November 1, 2010.November 1, 2010.

�� Petrochemical order in IndiaPetrochemical order in India

�� Acquired Acquired DefinoxDefinox –– leading fluid handling companyleading fluid handling company


�� Refinery order in IndiaRefinery order in India


�� Refinery order in IndiaRefinery order in IndiaOrder value SEK 50 million. Delivery in 2011Order value SEK 50 million. Delivery in 2011

Reasons to invest in Alfa LavalReasons to invest in Alfa Laval

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.

ExcellentExcellentglobalglobalpresencepresence

Environment FoodEnergy

Reasons to invest in Alfa Laval Reasons to invest in Alfa Laval

Structural demandStructural demand-- LongLong--term term growthgrowth driversdrivers


GlobalizationGlobalizationImproved living Improved living standardstandard

EnergyEnergy EnvironmentEnvironment

-

-25 00025 000

30 00030 000

35 00035 000MSEKMSEKInvoicing, constant ratesInvoicing, constant ratesInvoicing, constant ratesInvoicing, constant rates

Profitable growth Profitable growth

www.alfalaval.com12

10 00010 000

15 00015 000

20 00020 000

20022002--0909 20032003--0909 20042004--0909 20052005--0909 20062006--0909 20072007--0909 20082008--0909 20092009--0909 20102010--0909

CAGRCAGR

03090309--10091009

= 8.0%= 8.0%

CAGRCAGR

03090309--10091009

= 8.0%= 8.0%

+37%+37%

Parts & Service headcount developmentParts & Service headcount development

Profitable growthProfitable growth

Investments in the aftermarketInvestments in the aftermarket

www.alfalaval.com

455

520

590615

550

658

400

500

600

700

+45 %+45 %


Investments in the aftermarketInvestments in the aftermarketParts & Service total sales, MEURParts & Service total sales, MEUR

www.alfalaval.com

0

100

200

300

2005 2006 2007 2008 2009 2010E


Complementary acquisitionsComplementary acquisitions

� In last five years Alfa Laval has made 27 acquisitions adding 4.3 BSEK in sales at the time of the acquisition

� Bolt-on acquisitions adding 3-4% annual sales growth

www.alfalaval.com

annual sales growth

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

Selected niches Selected niches with significant with significant

CHECHECHECHE

S&TS&TS&TS&T The heat exchanger market The heat exchanger market Global Market = 10 BGlobal Market = 10 B€€

Leadership with Leadership with MultiMulti--BrandBrand •• WCRWCR

•• LHELHE

Technology barriersTechnology barriers


Wider range of products and servicesWider range of products and services

www.alfalaval.com

with significant with significant entry barriers entry barriers

S&TS&TS&TS&T

AIRAIRAIRAIR

Global Market = 10 BGlobal Market = 10 B€€

DryDry--cooler as a cooler as a core product core product

•• ManufacturingManufacturing IndiaIndiaand and RussiaRussia

•• EvaluatingEvaluating ChinaChinaand Braziland Brazil

Distribution barriersDistribution barriers•• ChampChamp

PetrochemicalsPetrochemicals


Opportunities Opportunities Oil 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


Fast growing regions = 45 % Fast growing regions = 45 %

www.alfalaval.comSlide 18

BRIC countries = 23 % BRIC countries = 23 %


Moving westMoving west

www.alfalaval.com

Facts & FiguresFacts & Figures

��Population: 31.4 mPopulation: 31.4 m

��GDP: 585 billion RMBGDP: 585 billion RMB

��Urban: 52%Urban: 52%

�� Traditional Economic base: Traditional Economic base: Consumer goods production Consumer goods production


ChongqingChongqing

www.alfalaval.com

Consumer goods production Consumer goods production in foods, textiles, automotive in foods, textiles, automotive products, agricultureproducts, agriculture

A substantial development A substantial development of presence and productsof presence and products

to meet growing local demands!to meet growing local demands!

www.alfalaval.com

Reasons to invest in Alfa LavalReasons to invest in Alfa Laval

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.

ExcellentExcellentglobalglobalpresencepresence

Environment FoodEnergy


Documents

Capital Markets Day 2010 - alfalaval.com · November 23, 2010 in Copenhagen 10:3010:30 Business update and Q&A Business update and Q&A Lars Lars Renström Renström, SvanteSvante