© Alfa Laval Slide 2 www.alfalaval.com

TodayToday’’s program s program

Capital Markets Day, November 13, 2007Capital Markets Day, November 13, 2007

•• Business update and Q&ABusiness update and Q&ALars RenstrLars Renströöm, m, SvanteSvante KarlssonKarlsson, Ulf , Ulf GranstrandGranstrand, , GGööranran MathiassonMathiasson and and Thomas Thomas ThuressonThuresson

Structural growthStructural growth•• GeographyGeography

Lars RenstrLars Renströöm, Jan m, Jan DebruynDebruyn, Nish Patel and Peter , Nish Patel and Peter LeiflandLeifland

•• Energy and energy related industries Energy and energy related industries Ulf Ulf GranstrandGranstrand

•• Clean technologiesClean technologiesSvanteSvante KarlssonKarlsson, , MaryneMaryne LemvikLemvik, Ulf , Ulf GranstrandGranstrand and Peter and Peter CarlbergCarlberg

•• Q&A and closing remarksQ&A and closing remarksLars RenstrLars Renströömm

LunchLunch

approx 16.30approx 16.30

© Alfa Laval Slide 3 www.alfalaval.com

Share developmentShare development

+90%

© Alfa Laval Slide 4 www.alfalaval.com

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

0

4 000

8 000

12 000

16 000

20 000

24 000

28 000

32 000

SEK millionSEK millionQ

304

Q30

4

Q40

4Q

404

Q10

5Q

105

SEK million R 12SEK million R 12

Q20

5Q

205

Orders receivedOrders received

= rolling twelve months value

Q30

5Q

305

= order intake per quarter

Q40

5Q

405

Q10

6Q

106

Q20

6Q

206

Q30

6Q

306

= % development at constant rates by quarter year on year

+15%

+15%

+ 5

%+

5%

+ 5

%+

5%

+ 9

%+

9%

+25%

+25%

+23%

+23%

+28%

+28%

+35%

+35%

+17%

+17%

+xx%+4

0%+4

0%Q

406

Q40

6

Q10

7Q

107

+36%

+36%

Q20

7Q

207

+13%

+13%

+30%

+30%

Q30

7Q

307

© Alfa Laval Slide 5 www.alfalaval.com

5050 CanadaCanada Water treatmentWater treatment EnvironmentEnvironment 20082008180180 ChinaChina EvaporationEvaporation Pulp and paper Pulp and paper 200720075555 ChinaChina ProcessingProcessing FoodFood 200720075050 VietnamVietnam (Various)(Various) MarineMarine 20072007--20082008

100100 USA/TaiwanUSA/Taiwan Central coolingCentral cooling Oil refiningOil refining 2008 2008 5050 BelgiumBelgium ProcessingProcessing Bio ethanolBio ethanol 20082008

190190 Saudi ArabiaSaudi Arabia Central coolingCentral cooling PetrochemicalPetrochemical 20092009135135 EuropeEurope ProcessingProcessing FoodFood 200820086060 IndiaIndia Clean technologyClean technology Pulp and paperPulp and paper 200820085050 Latin AmericaLatin America ProcessingProcessing PetrochemicalPetrochemical 2008200850 50 UkraineUkraine ProcessingProcessing Food/breweryFood/brewery 200820086565 USAUSA EvaporationEvaporation Process IndustryProcess Industry 20082008

835835

Large orders 2007Large orders 2007SEK millionSEK million CountryCountry ApplicationApplication IndustryIndustry DeliveryDelivery

© Alfa Laval Slide 6 www.alfalaval.com

Orders received by RegionOrders received by Region

CentrCentr. & East 9%

. & East 9%

North America 17%

North America 17%

Asia 31%Asia 31%

L. America 5%

L. America 5%

Other 2%

Other 2%

Western EuropeWestern Europe27%27%

Nordic 9%

Nordic 9%

+57+57

+36+36

January January –– September 2007, September 2007, at constant ratesat constant rates

+27+27 +9+9

+19+19

+18+18

© Alfa Laval Slide 7 www.alfalaval.com

0

200

400

600

800

1 000

1 200

1 400

0,0

3,0

6,0

9,0

12,0

15,0

18,0

21,0

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 *

Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307

© Alfa Laval Slide 8 www.alfalaval.com

Improved EBITAImproved EBITA--marginmargin

Very high capacity utilizationVery high capacity utilizationVery Very favourablefavourable product mixproduct mixFocus on profitabilityFocus on profitabilityImproved internal efficiencyImproved internal efficiency

© Alfa Laval Slide 9 www.alfalaval.com

Revised financial targetsRevised financial targets

Growth: At least 5% over a business cycle (unchanged)

EBITA-margin: 15% over a business cycle (12-15%)

ROCE: Minimum 25% (min. 20%)

© Alfa Laval Slide 10 www.alfalaval.com

R&D InvestmentsR&D InvestmentsMSEKMSEK

20022002 20032003 20042004 20052005 20062006 2007E2007E00

100100

200200

300300

400400

500500

600600

700700

+50%+50%

Increased investments in R&DIncreased investments in R&D

© Alfa Laval Slide 11 www.alfalaval.com

““Time to millionTime to million””

25% DOWN25% DOWNL5Y L5Y ““NewnessNewness””

50% UP50% UP

Time To Market Time To Market targets 2009targets 2009

© Alfa Laval Slide 12 www.alfalaval.com

12

11

8

6

Q2-08

Q1-08

Q4-07

Q3-07

N12M Rolling Launch PlanN12M Rolling Launch Plan37 product launches (+30%)37 product launches (+30%)

© Alfa Laval Slide 13 www.alfalaval.com

Investments in capacity/new productsInvestments in capacity/new products

00

100100

200200

300300

400400

500500

600600

700700

20022002 20032003 20042004 20052005 20062006 20072007

MS

EK

MS

EK

MachineryMachineryBuldingsBuldingsTOTALTOTAL

20082008

© Alfa Laval Slide 14 www.alfalaval.com

Parts & ServiceParts & Service

2500

2700

2900

3100

3300

3500

3700

3900

4100

4300

2004 2005 2006 2007

Orders received first nine monthsOrders received first nine months, SEK million, SEK million

+5%+5%

+13%+13%

+19%+19%

© Alfa Laval Slide 15 www.alfalaval.com

AcquisitionsAcquisitions

Tranter, ChinaTranter, China 100100 C/GC/GHelpmanHelpman 200200 PPDSODSO 5050 C/GC/GAlfa Laval India (64 Alfa Laval India (64 →→ 77%)77%) ──AGC EngineeringAGC Engineering 6565 C/GC/GFincoilFincoil 375375 PP

790790 ~ 3% of sales~ 3% of sales

Annual Sales, MSEK Dimension Annual Sales, MSEK Dimension

CC= Channel = Channel GG= Geography = Geography PP= Product = Product

© Alfa Laval Slide 16 www.alfalaval.com

TodayToday’’s program s program

Capital Markets Day, November 13, 2007Capital Markets Day, November 13, 2007

•• Business update and Q&ABusiness update and Q&ALars RenstrLars Renströöm, m, SvanteSvante KarlssonKarlsson, Ulf , Ulf GranstrandGranstrand, , GGööranran MathiassonMathiasson and and Thomas Thomas ThuressonThuresson

Structural growthStructural growth•• GeographyGeography

Lars RenstrLars Renströöm, Jan m, Jan DebruynDebruyn, Nish Patel and Peter , Nish Patel and Peter LeiflandLeifland

•• Energy and energy related industries Energy and energy related industries Ulf Ulf GranstrandGranstrand

•• Clean technologiesClean technologiesSvanteSvante KarlssonKarlsson, , MaryneMaryne LemvikLemvik, Ulf , Ulf GranstrandGranstrand and Peter and Peter CarlbergCarlberg

•• Q&A and closing remarksQ&A and closing remarksLars RenstrLars Renströömm

LunchLunch

approx 16.30approx 16.30

© Alfa Laval Slide 17 www.alfalaval.com