Capital Markets Day 2011Capital Markets Day 2011

www.alfalaval.com

Lars RenströmLars RenströmPresident and CEOPresident and CEO

Alfa Laval GroupAlfa Laval Group

November 22, 2011 in CopenhagenNovember 22, 2011 in Copenhagen

10:3010:30 Business update and Q&ABusiness update and Q&ALars Lars RenströmRenström, , SvanteSvante KarlssonKarlsson, Susanne , Susanne PahlenPahlen ÅklundhÅklundh, Peter , Peter LeiflandLeiflandand Q&A and Q&A

13:00 13:00 Innovative technologies; 3 parallel sessions and 5 topicsInnovative technologies; 3 parallel sessions and 5 topics-- The Aalborg product range (The Aalborg product range (SameerSameer KalraKalra))

LunchLunch

Capital Markets Day Capital Markets Day 2011 2011

www.alfalaval.com© Alfa Laval Slide 3

-- The Aalborg product range (The Aalborg product range (SameerSameer KalraKalra))-- Fluid Handling (Fluid Handling (BjarneBjarne SøndergaardSøndergaard))-- Marine & Diesel (Marine & Diesel (JoakimJoakim ThölinThölin))-- Oil & GasOil & Gas ((Sammy Sammy HulpiauHulpiau))-- Refinery (Mats Refinery (Mats SkogmanSkogman))

15:4515:45 Financial updateFinancial updateThomas Thomas ThuressonThuresson

16:15 16:15 Q&A and closing remarksQ&A and closing remarksLars Lars RenströmRenström

“Marine and Diesel Industry”

“Process Solution” “Component”

New divisionNew division

Strategic drive Strategic drive –– Divisions Divisions Process Technology DivisionMarine & Diesel DivisionEquipment Division

www.alfalaval.com

Diesel Industry” Driven

“Process Solution” Driven

“Component” Driven

26%26%31%31% 43%43%

New divisionNew division

Strategic drive Strategic drive –– Divisions Divisions

“Process Solution”

“Marine and Diesel Industry” “Component”

Process Technology DivisionMarine & Diesel DivisionEquipment Division

www.alfalaval.com

“Process Solution” Driven

Product solutions, Systems/Modules,

Process lines

Diesel Industry” DrivenProducts

Customised systems, Modules,

Service solutions

“Component” Driven

Sales Channels, e-Business,

OEM

Focus on customer segmentsFocus on customer segmentsOrders received January Orders received January –– September September 2011, Pro2011, Pro--formaforma

Industrial EquipmentIndustrial EquipmentIndustrial EquipmentIndustrial Equipment

OEMOEMOEMOEM

Sanitary EquipmentSanitary EquipmentSanitary EquipmentSanitary Equipment

PTD Parts PTD Parts & Service& ServicePTD Parts PTD Parts & Service& Service

Process IndustryProcess IndustryProcess IndustryProcess Industry

www.alfalaval.com

EQD Parts EQD Parts & Service& ServiceEQD Parts EQD Parts & Service& Service

Marine & Diesel Marine & Diesel EquipmentEquipmentMarine & Diesel Marine & Diesel EquipmentEquipment

Marine & Offshore Marine & Offshore SystemsSystemsMarine & Offshore Marine & Offshore SystemsSystems

MDD Parts MDD Parts & Service& ServiceMDD Parts MDD Parts & Service& Service

Food TechnologyFood TechnologyFood TechnologyFood Technology

Energy & EnvironmentEnergy & EnvironmentEnergy & EnvironmentEnergy & Environment

Equipment DivisionEquipment DivisionEquipment DivisionEquipment Division

Marine & Diesel DivisionMarine & Diesel DivisionMarine & Diesel DivisionMarine & Diesel Division

Process Technology DivisionProcess Technology DivisionProcess Technology DivisionProcess Technology Division

Marine &Marine &OffshoreOffshoreSystemsSystems

Marine &Marine &OffshoreOffshoreSystemsSystemsParts & ServiceParts & ServiceParts & ServiceParts & Service

Marine &Marine &OffshoreOffshoreSystemsSystems

Marine &Marine &OffshoreOffshoreSystemsSystemsParts & ServiceParts & ServiceParts & ServiceParts & Service

Marine & Diesel DivisionMarine & Diesel Division

www.alfalaval.com

Marine & Diesel Marine & Diesel EquipmentEquipmentMarine & Diesel Marine & Diesel EquipmentEquipmentMarine Marine EquipmentEquipmentMarine Marine EquipmentEquipment

Diesel Diesel EquipmentEquipmentDiesel Diesel EquipmentEquipment

Orders received January Orders received January –– September September 20112011SEK 5,873 million*SEK 5,873 million*

*) Pro*) Pro--formaforma

Group ManagementGroup Management

www.alfalaval.com

Nish PatelNish PatelExecutive Vice PresidentWestern Europe and North AmericaWestern Europe and North America

Nish PatelNish PatelExecutive Vice PresidentWestern Europe and North AmericaWestern Europe and North America

Peter LeiflandPeter LeiflandExecutive Vice PresidentMarine & Diesel Division Marine & Diesel Division

Peter LeiflandPeter LeiflandExecutive Vice PresidentMarine & Diesel Division Marine & Diesel Division

GrowthGrowth

Growth target: At least

per annum over a business cycle,

including acquisitions of small and

8%

www.alfalaval.com© Alfa Laval Slide 9

including acquisitions of small and

medium-sized companies.

Structural Structural growthgrowth

www.alfalaval.com© Alfa Laval Slide 10

Strong presence in fast-growing markets

Asia, Latin America andCentral & Eastern EuropeAsia, Latin America and

Central & Eastern EuropeWestern Europe and

North AmericaWestern Europe and

North America

www.alfalaval.com© Alfa Laval Slide 11

Top 10 marketsTop 10 marketsOrder intake 2011 YTDOrder intake 2011 YTD

Korea, South

Mid Europe

Nordic

China

United States

www.alfalaval.com© Alfa Laval Slide 12

0 1000 2000 3000 4000

Japan

Brazil

Adriatic

Russia

India

SEK at prevailing rates

Investments in fastInvestments in fast--growing marketsgrowing markets

�� Capacity Capacity China and IndiaChina and India

�� Wider product offering Wider product offering ChinaChina, India, Brazil and Russia, India, Brazil and Russia

e.g. Air HEX, decanters, large GPHEe.g. Air HEX, decanters, large GPHE

www.alfalaval.com

© Alfa Laval Slide 13

e.g. Air HEX, decanters, large GPHEe.g. Air HEX, decanters, large GPHE

�� Sales presence Sales presence China and IndiaChina and India

�� Service presenceService presence

PRICE

Premium functionalityPremium performancePremium designPremium price

BB

P

Product differentiationProduct differentiation

www.alfalaval.com

PERFORMANCE

Premium priceAlfa Laval quality

Basic functionalityBasic performanceBasic designBasic priceAlfa Laval quality

BB

Clear differentiation will avoid cannibalization

Case: Pumps in China

Premium range

Premium range variant

Basic range

www.alfalaval.com

2006 2007 2008 2009 2010

AcquisitionsAcquisitions

� Creating an acquisition culture

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

� Major acquisitions like Aalborg come on top of that

� In last five years Alfa Laval has made 30 acquisitions adding MEUR 885 (BnSEK 8,4) in sales

www.alfalaval.com

adding MEUR 885 (BnSEK 8,4) in sales

� About 10% of Group sales will come long-term from multi-brands (12% in 2010)

Alfa Laval multi branding strategyAlfa Laval multi branding strategyHigh enough profit margin to justify multi brands

WhenTiTi

GivenHigh Market Shares

AABB

YESYESAA

BBNONO

Mature products

YESYES

NONO

www.alfalaval.com

Channel Positioning

Performance

Price

How

Product differentiation Tier1

ier

2

ier

3

5 years = from 15 years = from 1 to 12%to 12%

Track recordTrack record

www.alfalaval.com*) *) DagensDagens IndustriIndustri, November 7, 2011, November 7, 2011

HighlightsHighlights

�New Marine & Diesel Division

�Structural growth

�Fast-growing markets

www.alfalaval.com

�Product differentiation for growth

�Acquisition for value creation

www.alfalaval.com© Alfa Laval Slide 20