interim report q4 2006 - alfa laval€¦ · q403 q104 q204 q304 q404 q105 q205 q305 q405 q106 q206...

© Alfa Lav al Slide 1 www.alfalaval.com

Interim Report Q4 2006Interim Report Q4 2006

Mr. Lars RenstrMr. Lars RenströömmPresident and CEOPresident and CEOAl fa Laval GroupAl fa Laval Group

-- Orders received, margins and dividendOrders received, margins and dividend-- HighlightsHighlights

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

-- Financials Financials -- OutlookOutlook


Key figuresKey figures

Orders received up 40% to SEK 6,672 million.Orders received up 40% to SEK 6,672 million.

Net sales up 36% to SEK 6,040 million.Net sales up 36% to SEK 6,040 million.

Adjusted EBITA SEK 1,018 million (535 ). Adjusted EBITA SEK 1,018 million (535 ).

-- Positive currency effect SEK 5 million.Positive currency effect SEK 5 million.

October October –– December 2006December 2006

January January –– December 2006December 2006

Orders received up 30% to SEK 24,018 million.Orders received up 30% to SEK 24,018 million.

Net sales up 21% to SEK 19,802 million.Net sales up 21% to SEK 19,802 million.

Adjusted EBITA SEK 3,010 million (1,766). Adjusted EBITA SEK 3,010 million (1,766).

-- Positive currency effect SEK 61 million.Positive currency effect SEK 61 million.


Proposed dividend and repurchase of sharesProposed dividend and repurchase of shares

Proposed mandate for repurchase of sharesProposed mandate for repurchase of shares

The Board of Directors proposes a mandate for repurchaseThe Board of Directors proposes a mandate for repurchase

of up to 10 percent of the issued shares with the intentionof up to 10 percent of the issued shares with the intention

to cancel repurchased shares.to cancel repurchased shares.

Proposed dividend for 2006Proposed dividend for 2006

The Board of Directors proposes a dividend of 6:25 SEK (5:10).The Board of Directors proposes a dividend of 6:25 SEK (5:10).


0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

0

4 000

8 000

12 000

16 000

20 000

24 000

28 000

SEK millionSEK million

Q40

3Q

403

Q10

4Q

104

Q20

4Q

204

Q30

4Q

304

Q40

4Q

404

Q10

5Q

105

Orders receivedOrders received

SEK million R 12SEK million R 12

Q20

5Q

205

= rolling twelve months value

= order intake per quarter

Q30

5Q

305

Q40

5Q

405

Q10

6Q

106

Q20

6Q

206

Q30

6Q

306

= % development at constant rates by quarter year on year

+1

6%

+1

6%

+2

2%

+2

2%

+2

0%

+2

0%

+1

5%

+1

5%

+ 5

%+

5%

+ 5

%+

5%

+ 9

%+

9%

+2

5%

+2

5%

+2

3%

+2

3%

+2

8%

+2

8%

+3

5%

+3

5%

+1

7%

+1

7%

+xx%

+4

0%

+4

0%

Q40

6Q

406


Order analysisOrder analysis

2005 2005 (SEK million)(SEK million)

Structural change, %Structural change, %

Currency effects,%Currency effects,%

Organic development, %Organic development, %

Total, %Total, %

2006 2006 (SEK million)(SEK million)

5,0205,020

Oct Oct –– Dec 06Dec 06

6,6726,672

+ 10+ 10

-- 88

+ 31+ 31

+ 33+ 33


0

200

400

600

800

1 000

1 200

0,0

3,0

6,0

9,0

12,0

15,0

18,0

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

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

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q403Q403 Q104Q104 Q204Q204 Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406



-- Orders received, margins and dividendOrders received, margins and dividend-- HighlightsHighlights




Highlights during the quarterHighlights during the quarter


Tranter agreed to acquire its distributor in China, Tranter agreed to acquire its distributor in China,

turnover approximately SEK 100 M.turnover approximately SEK 100 M.




Tranter agreed to acquire its distributor in China.Tranter agreed to acquire its distributor in China.

Divestment of engineering activity for the bioDivestment of engineering activity for the bio--pharmpharm

industry. Cost SEK 125 M in Q4 2006.industry. Cost SEK 125 M in Q4 2006.





Divestment of engineering activity.Divestment of engineering activity.

Petrochemical orders to China, SEK 130 and 110 M, Petrochemical orders to China, SEK 130 and 110 M,

Kuwait, SEK 100 M, and Oman, SEK 65 M.Kuwait, SEK 100 M, and Oman, SEK 65 M.PackinoxPackinox custom designed heat exchangerscustom designed heat exchangers for aromatics.for aromatics.

Delivery during 2007 and 2008.Delivery during 2007 and 2008.







Kuwait, SEK 100 M, and Oman, SEK 65 M.Kuwait, SEK 100 M, and Oman, SEK 65 M.

Petrochemical order to Oman, SEK 75 M.Petrochemical order to Oman, SEK 75 M.High efficiency plate heatHigh efficiency plate heat--exchanger T50 for central cooling.exchanger T50 for central cooling.

Delivery during 2008.Delivery during 2008.








Petrochemical order to Oman, SEK 75 M.Petrochemical order to Oman, SEK 75 M.

Ethanol order to the US, SEK 140 M.Ethanol order to the US, SEK 140 M.Decanter centrifuges, condensers and other heatDecanter centrifuges, condensers and other heat--exchangers for exchangers for

two new plants. Delivery during 2007.two new plants. Delivery during 2007.








Petrochemical order to Oman, SEK 75 M.Petrochemical order to Oman, SEK 75 M.

Ethanol order to the US, SEK 140 M.Ethanol order to the US, SEK 140 M.

Vegetable oil order to Russia, SEK 60 M.Vegetable oil order to Russia, SEK 60 M.A new plant based on a new complete product package for modifyinA new plant based on a new complete product package for modifying g

vegetable oils. Delivery during 2007.vegetable oils. Delivery during 2007.


Large orders 2006Large orders 2006

110 110 UkraineUkraine RefiningRefining FoodFood 20062006--20072007

6565 IndiaIndia EvaporationEvaporation Pulp and paper Pulp and paper 20072007

4545 BelgiumBelgium Central coolingCentral cooling Petrochemical industry Petrochemical industry 20072007

240240 Middle EastMiddle East Central coolingCentral cooling Gas productionGas production 20072007--20082008

6060 ChinaChina Central coolingCentral cooling Nuclear PowerNuclear Power 20072007--20082008

8080 Middle EastMiddle East ProcessingProcessing Gas productionGas production 2007 2007

7575 QatarQatar ProcessingProcessing Gas productionGas production 20072007

5050 Russia Russia ProcessingProcessing Oil refiningOil refining 20072007

6565 OmanOman AromaticsAromatics PetrochemicalPetrochemical 20082008

100100 KuwaitKuwait AromaticsAromatics PetrochemicalPetrochemical 20072007

130130 ChinaChina AromaticsAromatics PetrochemicalPetrochemical 20082008

6060 RussiaRussia RefiningRefining FoodFood 20072007

140140 USUS ProcessingProcessing Ethanol productionEthanol production 20072007

110110 ChinaChina AromaticsAromatics PetrochemicalPetrochemical 20082008

7575 OmanOman Central coolingCentral cooling Petrochemical Petrochemical 20082008

1,4051,405

Value,Value,SEK M SEK M CountryCountry ApplicationApplication IndustryIndustry DeliveryDelivery



-- Orders received, margins and dividend Orders received, margins and dividend -- HighlightsHighlights




Orders received by SegmentOrders 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

October October –– December 2006, December 2006, at constant ra tesat constant ra tes

++

++

+

+

+

++

−






FoodFood

The Process Technology Division, October The Process Technology Division, October –– December 2006,December 2006,at constant ra tes and for comparable unitsat constant ra tes and for comparable units

+

+

+

−

The energy relatedThe energy relatedindustries strong, industries strong, especially bio fuel, especially bio fuel, petrochemicalpetrochemicaland refinery.and refinery.

Oil and gas explorationOil and gas explorationbusiness stabilizedbusiness stabilizedon a high level.on a high level.

Still high investmentsStill high investmentsin food relatedin food relatedindustries.industries.




SanitarySanitary


Fluids & UtilityFluids & UtilityOEMOEM

++

+

+

+

The Equipment Division, October The Equipment Division, October –– December 2006, December 2006, at constant ra tes and for comparable unitsat constant ra tes and for comparable units

Strong marine market.Strong marine market.

Continued goodContinued goodinvestments in theinvestments in thefood industry.food industry.

HVAC* investments high,HVAC* investments high,particularly in the Middleparticularly in the MiddleEast and for heat pumps.East and for heat pumps.

* Heating Ventilation Air Conditioning* Heating Ventilation Air Conditioning


RefineryRefinery

Continued strong investment climate.

Packinox - a new channel to the market.

A unique product range.

From SEK 100 to 1,000 million in two years.


Orders received by Segment


SanitarySanitary


Fluids & UtilityFluids & Utility

OEMOEM

Parts & ServiceParts & Service




FoodFood

January January –– December 2006, December 2006, at constant ra tesat constant ra tes

+

++

++

+

+

+

+

+







Orders received by RegionOrders received by Region

Centr

Centr. & East 9 %

. & East 9 %

North America 19%

North America 19%

Asia 31%Asia 31%

L. Am

erica

4 %

L. Am

erica

4 %O

the

r 2 %

Oth

er 2

%

Western EuropeWestern Europe26 %26 %

Nordic 9 %

Nordic 9 %

+56+56

October October –– December 2006, December 2006, a t constant ratesat constant rates

+90+90 +32+32+10+10

+13+13

+41+41


Highlights AmericasHighlights Americas

North AmericaNorth AmericaVery strong developmentin the US.Strong market for fuel ethanol.Good development in Tranter.

Latin AmericaLatin AmericaA very good quarter with bestdevelopment in Argentina and Brazil.Strongest development in Process Industry and Parts & Service.


+90+90

+41+41


Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. NordicStrong development in Adriatic,Nordic and Iberia.Best development in Comfort &Refrigeration and Food.

Central and Eastern EuropeCentral and Eastern EuropeVery strong increase in Russia,Very strong increase in Russia,and South East Europe.and South East Europe.Strongest development in Food, Strongest development in Food, Process Industry and Refrigeration.Process Industry and Refrigeration.


+32+32+10+10

+13+13


Highlights AsiaHighlights Asia

AsiaAsiaBest development in ProcessBest development in ProcessIndustry, Marine and Sanitary.Industry, Marine and Sanitary.China and South East Asia strong.China and South East Asia strong.


+56+56


Orders received by RegionOrders received by Region

Centr

Centr. & East 10%

. & East 10%

North America 18 %

North America 18 %

Asia 29 %Asia 29 %

L. A

mer ica 4%

L. A

mer ica 4%

Ot h

er 2

%O

t he

r 2 %

Western EuropeWestern Europe28%28%

No

rdic 9

%N

ord

ic 9%

+26+26

+31+31

January January –– December 2006, December 2006, at constant ra tesat constant ra tes

+52+52 +49+49+20+20

+14+14


Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAl fa Laval GroupAl fa Laval Group





HighlightsHighlights

Order intake Order intake

Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

6,6726,6726,0406,040

1,0181,018

16.9%16.9%

SEK millionSEK million OctOct –– Dec 06Dec 06


Gross profit marginGross profit margin

20

30

40

50

In percent of salesIn percent of sales

Q403Q403 Q104Q104

38.938.935.035.0

33.433.4

Q204Q204 Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106

33.933.9

Q206Q206 Q306Q306 Q406Q406




Net salesNet sales



Profit before taxProfit before tax

includes cost for divestment of engineering activity for the includes cost for divestment of engineering activity for the

biopharmbiopharm industry, SEK 125 millionindustry, SEK 125 million


6,6726,6726,0406,040

1,0181,018

16.9%16.9%

751751


Earnings per shareEarnings per share

20052005

2.732.73

3.313.31

20062006

4.324.32

4.894.89

EarningsEarnings

Earnings, excluding stepEarnings, excluding step--upup

20062006

15.1015.10

17.2317.23

20052005

7.927.92

9.839.83

Q4Q4 Jan Jan -- DecDec




Net salesNet sales



Profit before taxProfit before tax

includes cost for divestment of engineering activity for the includes cost for divestment of engineering activity for the

biopharmbiopharm industry, SEK 125 millionindustry, SEK 125 million

Cash flow from operating activitiesCash flow from operating activities

ROCE ROCE


6,6726,6726,0406,040

1,0181,018

16.9%16.9%

757511

2,6192,619

35.9%35.9%


Cash flows fromCash flows from

-- operating activitiesoperating activities-- investing activitiesinvesting activities

Financial Financial netnet paidpaid

DividendsDividendsTotalTotal

CashCash--flow statementflow statement

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

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

SEK millionSEK millionJanJan--DecDec

20062006JanJan-- DecDec

20052005

2,6192,619--1,5781,578

-- 115115

-- 599599327327

1,6161,616-- 665665

-- 351351-- 557557

4343

2,1322,132 942942


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effect

Transaction effectTransaction effectTotalTotal

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

20072007

-- 4040-- 105105

-- 145145

2007 impact based on EUR/USD 1.30 and EUR/SEK 9.00 2007 impact based on EUR/USD 1.30 and EUR/SEK 9.00

20062006

+ 11+ 11+ 50+ 50

+ 61+ 61


Capital expenditureCapital expenditure

0

100

200

300

400

500

600

0

0,5

1

1,5

2

2,5

3

2002 2003 2004 2005 2006

Cap ex Depr acc to plan (excl step-up) Cap ex/sales

SEK million

2007

% of sales

2.5%


Order backlog as per December 31SEK million

For delivery in the next year

0

2000

4000

6000

8000

10000

12000

14000

2004 2005 2006

4,610

7,750

12,360

1,247

6,250

7,497

563

4,200

4,763

For delivery in the later years


Net sales 2007Net sales 2007

19,80219,802

+ 1,500+ 1,500

Net sales, 2006Net sales, 2006

BacklogBacklog

PricePrice

Tranter, 2 monthsTranter, 2 months

““InIn--forfor--outout””

Net sales, 2007Net sales, 2007

+ +

++

+/+/-- ??

∑∑







Outlook for the near futureOutlook for the near future

““In most of the markets, geographical In most of the markets, geographical

as well as customer segments, thatas well as customer segments, that

Alfa Laval serves a continued very Alfa Laval serves a continued very

strong demand is expected.strong demand is expected.””

interim report q4 2006 - alfa laval€¦ · q403 q104 q204 q304 q404 q105 q205 q305 q405 q106 q206...

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