© alfa laval slide 1 · zorders received: up 5.1% to sek 4,004 million znet sales: up 5.6% to sek...

Interim Report Q1 2005Interim Report Q1 2005

Mr. Lars RenstrMr. Lars RenströömmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group

-- Orders received and marginsOrders received and margins-- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Key figuresJanuary January –– March 2005March 2005

Orders received: Orders received: up 5.1% to SEK 4,004 millionup 5.1% to SEK 4,004 million

Net sales: Net sales: up 5.6% to SEK 3,268 millionup 5.6% to SEK 3,268 million

Adjusted EBITA: Adjusted EBITA: SEK 330 million (383) SEK 330 million (383) -- Negative currency effect SEK 42 millionNegative currency effect SEK 42 million


-5

0

5

10

15

20

25

4 000

6 000

8 000

10 000

12 000

14 000

16 000% Q on Q% Q on Q

Q20

2Q

202

Q30

2Q

302

Q40

2Q

402

Q10

3Q

103

Q20

3Q

203

Q30

3Q

303

Q40

3Q

403

Q10

4Q

104

Q20

4Q

204

Q30

4Q

304

Q40

4Q

404

Q10

5Q

105

Orders receivedSEK million R 12SEK million R 12


Order analysisOrder analysis

20042004Structural change, %Structural change, %Currency,%Currency,%Organic development, %Organic development, %Total, %Total, %20052005

3,9293,929

SEK millionSEK million Jan Jan –– Mar 05Mar 05

4,0044,004

+ 1+ 1-- 33+ 4+ 4+ 2+ 2


0

100

200

300

400

500

600

700

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

SEK million and in percent of salesSEK million and in percent of sales

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

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q202Q202 Q302Q302 Q402Q402 Q103Q103 Q203Q203 Q303Q303 Q403Q403 Q104Q104 Q204Q204 Q304Q304 Q404Q404 Q105Q105


0

100

200

300

400

500

600

700

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

SEK million and in percent of sales, excluding FXSEK million and in percent of sales, excluding FX--transaction effects Q105transaction effects Q105

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

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q202Q202 Q302Q302 Q402Q402 Q103Q103 Q203Q203 Q303Q303 Q403Q403 Q104Q104 Q204Q204 Q304Q304 Q404Q404 Q105Q105


HighlightsJanuary January –– March 2005March 2005

Acquisition of the French company Acquisition of the French company PackinoxPackinox


PackinoxPackinox

World leader in large welded plate heat exchangersWorld leader in large welded plate heat exchangersfor the hydrocarbon industry.for the hydrocarbon industry.

Customer segments:Customer segments: Refineries and PetrochemicalsRefineries and PetrochemicalsAnnual sales (Annual sales (estest 2005):2005): MSEK 450 MSEK 450 Employees:Employees: 145 (R&D, manufacturing, sales)145 (R&D, manufacturing, sales)

In a nutshellIn a nutshell


The strategic fit

Co

Bar

Alfa LavalPlate Heat Exch.

50 100 150

100

200

300

400

500

PackinoxHigh Perfor-

mance -Compabloc,

Alfa Rex




AlfdexAlfdex--order from Volvoorder from Volvo


Alfdex-order from Volvo

Value: SEK 400 millionover five yearsSerial deliveries fromend of 2005All Volvo-brands; Volvo,Renault and Merck





Environmentally friendly solutions to Fincantieri





EnvironmentallyEnvironmentally friendlyfriendly solutions to solutions to FincantieriFincantieri

Further optimization of the globalFurther optimization of the global

manufacturing structuremanufacturing structure


Further optimization of the global Further optimization of the global manufacturing structuremanufacturing structure

Savings: Savings: first 12 months: SEK 50 million first 12 months: SEK 50 million after that further savingsafter that further savings

Total cost SEK 125 millionTotal cost SEK 125 million(non(non--recurring item in first quarter 2005)recurring item in first quarter 2005)

Closure of units in Spain and CanadaClosure of units in Spain and Canada


Orders received by Segment

Comfort & RefrigerationComfort & Refrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & UtilityOEMOEM

Parts & ServiceParts & Service

Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

January – March 2005, at constant ratesat constant rates

+

++

++

−

+

−

+

+


Environmental applications create growthEnvironmental applications create growth

Example: Applications for the Marine industryExample: Applications for the Marine industry

Bilge waterBallast water

Crank case ventilation


Orders received by RegionOrders received by Region

Centr

Centr. & E ast 7 %

. & E ast 7 %

Nort h

Am

erica

18

%

Nort h

Am

erica

18

%

Asia 29 %Asia 29 %

L. America 5 %

L. America 5 %

Other 2 %

Other 2 %

Western EuropeWestern Europe28 %28 %

Nordic 11 %

Nordic 11 %

+62+62

--99

+15+15


--1818

--55+21+21


Highlights AmericasHighlights Americas

North AmericaNorth AmericaStrong growthStrong growthAll segments above 2004All segments above 2004except Sanitaryexcept Sanitary

Latin AmericaLatin AmericaContinued strong growth in BrazilContinued strong growth in BrazilIncreased demand in all segmentsIncreased demand in all segmentswithin Process Technology Divisionwithin Process Technology DivisionHigh growth in Parts & ServiceHigh growth in Parts & Service


+62+62

+21+21


Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. NordicMidEuropeMidEurope, Adriatic and Iberia, Adriatic and Iberiaabove 2004above 2004Nordic, Benelux and France belowNordic, Benelux and France below

Central and Eastern EuropeCentral and Eastern EuropeTurkey and Ukraine strongTurkey and Ukraine strongLower project activity in RussiaLower project activity in RussiaVery good growth for Parts & ServiceVery good growth for Parts & Service


--99

--1818

--55


Highlights AsiaHighlights Asia

AsiaAsiaVeryVery strong strong growthgrowth in Japanin JapanModerate Moderate growthgrowth in Chinain Chinaand and IndiaIndiaContinuedContinued strong strong growthgrowthin Parts & Servicein Parts & Service


+15+15


Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAlfa Laval GroupAlfa Laval Group



HighlightsHighlights

Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmargin

4,0044,0043,2683,268

33033010.1%10.1%



20052005

20042004

SEK millionSEK million

Deviation Deviation

Adjusted EBITA Adjusted EBITA

383383

--5353

993333

--1111

Jan Jan –– Mar 05Mar 05

Deviation excl FX Deviation excl FX FX. transactionFX. transactionFX. translation FX. translation

330330


Gross profit marginGross profit margin

20

30

40

50In percent of salesIn percent of sales

Q202Q202 Q302Q302 Q402Q402 Q103Q103 Q203Q203 Q303Q303 Q403Q403 Q104Q104

37.037.039.039.040.040.0

Q204Q204 Q304Q304 Q404Q404 Q105Q105


Gross profit marginGross profit margin

20

30

40

50In percent of sales, excluding FXIn percent of sales, excluding FX--transaction effects Q105transaction effects Q105

Q202Q202 Q302Q302 Q402Q402 Q103Q103 Q203Q203 Q303Q303 Q403Q403 Q104Q104

38.038.039.039.040.040.0

Q204Q204 Q304Q304 Q404Q404 Q105Q105



Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before tax


4,0044,0043,2683,268

33033010.1%10.1%

7676


Earnings per shareEarnings per share

Q1 2005Q1 2005 Q1 2004Q1 2004

EarningsEarnings 0.49*0.49* 1.381.38

EarningsEarnings excludingexcluding 0.93*0.93* 1.831.83goodwill and stepgoodwill and step--upup

IFRSIFRS

* Excluding restructuring charge of SEK 125 million an additional 0.75 SEK per share



Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before taxCash flow from operating activitiesCash flow from operating activitiesROCE ROCE

Excl. stepExcl. step--up and goodwill approx. 55% up and goodwill approx. 55%


4,0044,0043,2683,268

33033010.1%10.1%

76761717

21.0%21.0%


MSEKMSEK

Cash flows fromCash flows from-- operating activitiesoperating activities-- investing activitiesinvesting activities

Financial Financial netnet paidpaidDividendsDividends

TotalTotalPro Forma FreePro Forma Free--cashcash--flow*flow*

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

CashCash--flow statementflow statement

Q1 2005Q1 2005

1717-- 483483

22--

-- 464464-- 4040

Q1 2004Q1 2004

293293-- 3838-- 4444

--210210214214


0

500

1000

1500

2000

2500

3000

3500

4000

0012 0103 0106 0109 0112 0203 0206 0209 0212 0303 0306 0309 0312 0403 0406 0409 0412 05030,0%

5,0%

10,0%

15,0%

20,0%

25,0%

Inventory and Advances

Inventory net of Advances Inventory net of AdvancesIn percent of net inoicing

Inventory in percentof net invoicing

SEK millionMar 31, 2004 Mar 31, 2005Volume & Fx 115 MSEKMaterial prices 260Component shortage& other 66

Total 441

13.914.6


Accounts Receivable

Accounts Receivable Accounts ReceivableIn percent of net invocing

SEK million

0

500

1000

1500

2000

2500

3000

3500

4000

0012 0103 0106 0109 0112 0203 0206 0209 0212 0303 0306 0309 0312 0403 0406 0409 0412 05030,0%

5,0%

10,0%

15,0%

20,0%

25,0%

17.918.4 18.018.3

20.4


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effectTransaction effectTransaction effect

TotalTotal

*Based on EUR/USD 1.30 and EUR/SEK 9.10*Based on EUR/USD 1.30 and EUR/SEK 9.10

Estimated impact on adjusted EBITA from Estimated impact on adjusted EBITA from FxFx. fluctuations. fluctuations

WY 05*WY 05*

-- 3535-- 165165-- 200200

Q1 2005Q1 2005

-- 99-- 3333-- 4242


Outlook for the near futureOutlook for the near future

……a continued demand on the present a continued demand on the present high level. high level.

……that the current high price level for that the current high price level for some raw materials will remain, at some raw materials will remain, at least short term.least short term.

Alfa Laval is expecting Alfa Laval is expecting ……

© alfa laval slide 1 · zorders received: up 5.1% to sek 4,004 million znet sales: up 5.6% to sek...

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