Q408 Presentation 090204 FFF [Kompatibilitetsläge] · ÅSlowdown in Marine. ÅPostponed dairy projects affected Sanitary. ÅStrong development for OEM following continued Sanitary

04/02/2009

© Alfa Laval

04/02/2009

© Alfa Laval 1

Report for Q4 and full year Report for Q4 and full year 20082008

-- Orders received and marginsOrders received and margins-- HighlightsHighlights

D l t tD l t t

Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group

-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook

Key figuresKey figures

Orders received dropped 15% to SEK 6,181 million.Orders received dropped 15% to SEK 6,181 million.

October October –– December 2008December 2008

Net sales rose 4.4% to SEK 8,096 million.Net sales rose 4.4% to SEK 8,096 million.

Adjusted EBITA up 2.7% at SEK 1,721 million. Adjusted EBITA up 2.7% at SEK 1,721 million.

-- Negative currency effect SEK 65 million.Negative currency effect SEK 65 million.

January January –– December 2008December 2008

Orders received down 0.4% at SEK 27,464 million.Orders received down 0.4% at SEK 27,464 million.

www.alfalaval.com© Alfa Laval Slide 3

Net sales rose 11.5% to SEK 27,850 million.Net sales rose 11.5% to SEK 27,850 million.

Adjusted EBITA up 23.7% at SEK 6,160 million. Adjusted EBITA up 23.7% at SEK 6,160 million.

-- Negative currency effect SEK 291 million.Negative currency effect SEK 291 million.

04/02/2009

© Alfa Laval 2

Proposed dividendProposed dividendProposed dividend for 2008Proposed dividend for 2008

The board of Directors proposes a dividend of 2:25 SEK (2:25).The board of Directors proposes a dividend of 2:25 SEK (2:25).


7 000

8 000

28 000

32 000

SEK millionSEK million

Orders receivedOrders receivedSEK million R 12SEK million R 12

2 000

3 000

4 000

5 000

6 000

7 000

8 000

12 000

16 000

20 000

24 000

28 000

%% %% %% %% %% %% %% %% %% %% %% %% %%


0

1 000

0

4 000

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q40

5Q

405

Q10

6Q

106

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

+23%

+23%

+28%

+28%

+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%

04/02/2009

© Alfa Laval 3

Order analysisOrder analysis

2007 2007 (SEK millions)(SEK millions) 6,5766,576

October October –– December 2008December 2008

Structural change, %Structural change, %Currency effects,%Currency effects,%Organic development, %Organic development, %Total, %Total, %2008 2008 (SEK million)(SEK million) 6,1816,181

+ 2.5 + 2.5 + 9.0 + 9.0 --17.517.5-- 6.0 6.0


Organic development 7000

%%

MarineMarinecancellationscancellations

5000

6000 -- 7%7%

-- 4,5%4,5%

-- 6%6%

ca ce a o sca ce a o s

MarineMarineordersorders--35%35%

OrdersOrdersotherother

segmentssegments--7%7%


4000

Q4 07Q4 07 Q4 08Q4 08

04/02/2009

© Alfa Laval 4

1 575

1 800

21 0

24,0

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

Adjusted EBITA / margin *Adjusted EBITA / margin *

450

675

900

1 125

1 350

1 575

6,0

9,0

12,0

15,0

18,0

21,0


0

225

0,0

3,0

* 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.”

Q108Q108Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q208Q208 Q308Q308 Q408Q408


D l t tD l t t

Report for Q4 and full Report for Q4 and full year 2008year 2008



04/02/2009

© Alfa Laval 5

Highlights during the quarterHighlights during the quarterLarge orders, total SEK 335 million (160) Large orders, total SEK 335 million (160)

Power order in China.Power order in China.Order value SEK 50 million. Delivery during 2010.Order value SEK 50 million. Delivery during 2010.


Highlights during the quarterHighlights during the quarter

Power order in China.Power order in China.

Large orders, total SEK 335 million (160) Large orders, total SEK 335 million (160)

Oil treatment order for power plant in Saudi Arabia.Oil treatment order for power plant in Saudi Arabia.Order value SEK 70 million. Delivery during 2009.Order value SEK 70 million. Delivery during 2009.


04/02/2009

© Alfa Laval 6




Oil treatment order for power plant in Saudi ArabiaOil treatment order for power plant in Saudi Arabia..

Petrochemical order in South Korea.Petrochemical order in South Korea.Order value SEK 120 million. Delivery during 2010.Order value SEK 120 million. Delivery during 2010.





Oil treatment order for power plant in Saudi ArabiaOil treatment order for power plant in Saudi Arabia..

Petrochemical order in South Korea.Petrochemical order in South Korea.

Clean technology order for U.S. power plant.Clean technology order for U.S. power plant.Order value SEK 95 million. Delivery during 2009.Order value SEK 95 million. Delivery during 2009.


04/02/2009

© Alfa Laval 7


D l t tD l t t




Orders received by SegmentOrders received by Segment

Comfort & Comfort & RefrigerationRefrigeration

October October –– December 2008, December 2008, at constant ratesat constant rates

−gg

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEMLife ScienceLife Science

Process IndustryProcess Industry

−Parts & ServiceParts & Service +

+

−−

−

+


Energy & EnvironmentEnergy & Environment

FoodFood

+−

04/02/2009

© Alfa Laval 8

Orders received by SegmentOrders received by SegmentThe Process Technology Division, October The Process Technology Division, October –– December 2008, December 2008, at constant ratesat constant rates

Lower activity in brewery Lower activity in brewery & vegetable oil industries& vegetable oil industries

Sl d d i PSl d d i PSlow demand in ProcessSlow demand in ProcessIndustry Industry -- except refineryexcept refinery

Positive development Positive development for Power boosted E&Efor Power boosted E&E

Life ScienceLife Science


+

−



FoodFood

+−

Orders received by SegmentOrders received by SegmentThe Equipment Division, October The Equipment Division, October –– December 2008, December 2008, at constant ratesat constant rates

− Comfort & Comfort & RefrigerationRefrigeration

Slowdown in Marine.

Postponed dairy projects affected Sanitary.

Strong development for OEM following continued

SanitarySanitary


OEMOEM

−

−

−

+

gg



OEM following continued demand for heat-pumps and AC.

04/02/2009

© Alfa Laval 9

Orders received by SegmentOrders received by Segment

Comfort & Comfort & RefrigerationRefrigeration

Parts & ServiceParts & Service

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

+−



OEMOEM

Life ScienceLife Science


E & E i tE & E i t

+

+=

+

=−

−


SanitarySanitary


FoodFood

+−

−


D l t tD l t t




04/02/2009

© Alfa Laval 10

Orders received by RegionOrders received by RegionOctober October –– December 2008, December 2008, at constant ratesat constant rates

--77

Asia 28 %Asia 28 %

--4444--55

--2727

--1111


North AmericaNorth America

Highlights AmericasHighlights AmericasOctober October –– December 2008, December 2008, at constant ratesat constant rates

North America North America Base orders were stable.Base orders were stable.Orders on an unchanged level for Orders on an unchanged level for Equipment, negative development for Equipment, negative development for Process Process Technology.Technology.

Latin America Latin America Region pressured by lower order intake Region pressured by lower order intake in Argentina and Brazil, mainly for in Argentina and Brazil, mainly for Refrigeration and Process Industry. Refrigeration and Process Industry.


Energy & Environment and Food Energy & Environment and Food performed well.performed well.

04/02/2009

© Alfa Laval 11

Highlights EuropeHighlights Europe

Western Europe incl NordicWestern Europe incl Nordic

October October –– December 2008, December 2008, at constant ratesat constant rates

Western Europe incl. NordicWestern Europe incl. NordicWeaker development for Weaker development for Equipment division, except OEM.Equipment division, except OEM.Base orders were unchanged.Base orders were unchanged.

Central and Eastern Europe Central and Eastern Europe Overall weak development in most Overall weak development in most markets.markets.Negative impact from Marine Negative impact from Marine


cancellations in Turkey and Russia.cancellations in Turkey and Russia.

Highlights AsiaHighlights AsiaOctober October –– December 2008, December 2008, at constant ratesat constant rates

Asia Asia Decline in Marine market Decline in Marine market continued.continued.Large installed base boosted Parts & Large installed base boosted Parts & Service.Service.Best performance in Best performance in the Middle East the Middle East and India. and India.


04/02/2009

© Alfa Laval 12

Orders received by RegionOrders received by RegionJanuary January –– December 2008, December 2008, at constant ratesat constant rates

-2

+11+11Asia 34%Asia 34%

Western Europe 25 %Western Europe 25 %



D l t tD l t t


Mr. Thomas ThuressonMr. Thomas ThuressonCFOCFOAlfa Laval GroupAlfa Laval Group


04/02/2009

© Alfa Laval 13

HighlightsHighlights

Order intake Order intake 6,1816,181

SEK millionsSEK millions October October –– December 2008December 2008

Net salesNet sales 8,0968,096


Gross profit marginGross profit margin

50In percent of salesIn percent of sales

30

4040.240.240.940.9

38.938.93535


20Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q108Q108 Q208Q208 Q308Q308 Q408Q408

04/02/2009

© Alfa Laval 14


Order intake Order intake

SEK millionsSEK millions OctoberOctober –– December 2008December 2008

6,1816,181Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginNonNon--recurring chargerecurring chargeProfit before taxProfit before tax

8,0968,0961,7211,721

21.3%21.3%-- 2702701,2111,211


Comparison distorting items

•• Sale of property in BrazilSale of property in Brazil

SEK millionsSEK millions OctoberOctober –– December 2008December 2008

102102Sale of property in Brazil Sale of property in Brazil

•• Restructuring chargeRestructuring charge

P&L impactP&L impact

102102

-- 270270

-- 168168


04/02/2009

© Alfa Laval 15

Capacity and work-force reduction program communicated January 12• Measures under implementation to reduce the number of

employees with about 1 000 during the first six months ofemployees with about 1 000 during the first six months of 2009. Some 300 of these in Sweden.

• Annualized savings of approximately SEK 400 million are expected. Implementation estimated to lead to non-recurring costs of about SEK 300 million.

• SEK 270 million were charged to the fourth quarter.

• Full impact from program expected in the fourth quarter of


• Full impact from program expected in the fourth quarter of 2009, the latest.

Earnings per shareEarnings per share

EarningsEarnings

20082008

2.032.03

20072007

2.422.42

Oct Oct -- DecDec Jan Jan -- DecDec20082008

8.838.83

20072007

7.127.12gg

Earnings, excluding stepEarnings, excluding step--upup 2.152.15 2.542.54 9.269.26 7.647.64


04/02/2009

© Alfa Laval 16

Share repurchasesShare repurchasesDec 31Dec 31

Mandate from AGM 2007Mandate from AGM 20071 452 4001 452 400

0.30.3

5 901 5505 901 5501.41.4

Number of repurchased shares Jan 1 Number of repurchased shares Jan 1 -- March 31*March 31*Percentage of outstanding sharesPercentage of outstanding shares

Mandate from AGM 2008Mandate from AGM 2008Number of repurchased shares April 1 Number of repurchased shares April 1 –– Dec 31Dec 31Percentage of outstanding sharesPercentage of outstanding shares


766766Total in MSEK spent on shares bought after Dec. 31 2007Total in MSEK spent on shares bought after Dec. 31 2007Shares held are proposed to be cancelled at the AGMShares held are proposed to be cancelled at the AGM

* * Remaining after cancellation.Remaining after cancellation.


Order intake Order intake N t lN t l

SEK millionsSEK millions October October –– December 2008December 2008

6,1816,1818 0968 096Net salesNet sales

Adjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before taxCash flow from operating activitiesCash flow from operating activitiesROCEROCEROEROE

8,0968,0961,7211,721

21.3% 21.3% 1,2111,211

87787753.8%53.8%42.8%42.8%


04/02/2009

© Alfa Laval 17

Cash flow fromCash flow from

CashCash--flow statement flow statement

SEK millionsSEK millionsJan Jan –– DecDec

20082008Jan Jan -- DecDec

20072007

-- operating activitiesoperating activities-- investing activitiesinvesting activities

Financial Financial net paidnet paidDividendsDividendsRepurchase of sharesRepurchase of sharesTotalTotal

4,0624,062-- 1,3331,333

-- 292292-- 983983-- 766766

688688

3,2643,264-- 1,6761,676

-- 244244-- 725725

-- 1,4971,497-- 878878


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

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

3,0233,023 2,4642,464

Foreign exchangeForeign exchange

SEK millionSEK million

Estimated impact on adjusted EBITA from Fx. fluctuationsEstimated impact on adjusted EBITA from Fx. fluctuations

Q4 08Q4 08 WY 09*WY 09*WY 08WY 08

Translation effectTranslation effectTransaction effectTransaction effect

TotalTotal

*B d EUR/USD 1 30 d EUR/SEK 10 50*B d EUR/USD 1 30 d EUR/SEK 10 50

109109-- 174174-- 6565

250250135 135 385385

00-- 291291-- 291291


*Based on EUR/USD 1. 30 and EUR/SEK 10.50*Based on EUR/USD 1. 30 and EUR/SEK 10.50

04/02/2009

© Alfa Laval 18

Order backlog as per Dec 31 SEK millionsSEK millions

14000

16000 14,31014,31014,73014,730

4000

6000

8000

10000

12000

14000

2,6682,668

11,642

3,2983,298

11,432

2,3442,344

10,015

12,35912,359


For delivery next yearFor delivery next year

0

2000

For delivery later than next yearFor delivery later than next year

2008200820062006 20072007

Order backlog as per Dec 31 Order backlog as per Dec 31 SEK millionsSEK millions

15000 14,31014,31014,73014,730

5000

7500

10000

12500

8,5768,576

5,7345,734

9,1099,109

5,6215,621


Other SegmentsOther Segments

0

2500

MarineMarine

2008200820072007

04/02/2009

© Alfa Laval 19

-- Orders received and operating margin Orders received and operating margin -- HighlightsHighlights

D l t tD l t t




Outlook for the first quarterOutlook for the first quarter

“We expect demand in the first“We expect demand in the firstWe expect demand in the first We expect demand in the first quarter to be somewhat lower quarter to be somewhat lower than the fourth quarter 2008.”than the fourth quarter 2008.”


Documents

Q408 Presentation 090204 FFF [Kompatibilitetsläge] · ÅSlowdown in Marine. ÅPostponed dairy projects affected Sanitary. ÅStrong development for OEM following continued Sanitary