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
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•• 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
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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
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+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 *
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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
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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 %
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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
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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%
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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%
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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
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20042004 20052005 20062006 20072007 2008200800
100100
200200
300300
400400
2009E2009E
More new customer valuesMore new customer values
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Higher portion of new productsHigher portion of new productsDecanterDecanter portfolio portfolio –– LaunchLaunch of new of new productsproducts
20072006
2008
2005
2009 2010
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Launches
Product Centre DecantersProduct Centre DecantersNewness Newness –– Gross MarginGross Margin
NS Last 5 Years & OlderNS Last 5 Years & Older
L5Y
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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%
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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
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� Continue to acquire companies that complement Alfa Laval in terms of geography, channels or products
Acquisition strategyAcquisition strategyAcquisitions since 2007Acquisitions since 2007
ProductProduct
ChannelChannel
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Annual Sales MSEK 2,500Exclusive of Alfa Laval India (64 → 89%)
ChannelChannel
� Focus areas in the down turn
� After the downturn
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Alfa Laval’s positionAlfa Laval’s positionNo. 1 in all three product areasNo. 1 in all three product areas
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33--4% acquired 4% acquired growth p.a.growth p.a.
ExcellentExcellentglobalglobal
presencepresence
Environment FoodEnergy
Structural demandStructural demand-- LongLong--term growth term growth driversdrivers
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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
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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.
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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
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