© alfa laval slide 0 €¦ · j.p. morgan j.p. morgan cazenove cazenove capital capital goods...

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J.P. Morgan J.P. Morgan CazenoveCazenoveCapital Capital GoodsGoods CEO ConferenceCEO Conference

PennyhillPennyhill Park Hotel, June 10th, 2010Park Hotel, June 10th, 2010

Lars RenströmLars Renström

President and CEOPresident and CEO

Alfa Laval in Alfa Laval in briefbrief

• Sales: SEK 26.0 B

• Order intake: SEK 21.5 B

• Employees: 11,400

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• Sales companies in 55 countries, sales representation in another 45

• 28 major production units

• More than 70 service centres

A global reachA global reach

s

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• Asia, Central & Eastern Europe and Latin America made up 45 percent of order intake in 2009

With a no 1 market positionWith a no 1 market position-- for all three key technologiesfor all three key technologies

Heat Transfer Separation Fluid Handling

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Market share30%

Market share25-30%

Market share10-12%

Meeting needsMeeting needs in most industriesin most industries

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HeatingHeating CoolingCooling SeparationSeparation Fluid handlingFluid handling

Solutions to make a differenceSolutions to make a difference

Process Technology division Process Technology division

Offers unique solutions that help customers Offers unique solutions that help customers

optimize their processes. Our scope includes optimize their processes. Our scope includes

� Optimize production and use of energy

Reduce emissions and

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optimize their processes. Our scope includes optimize their processes. Our scope includes

everything from components to systems.everything from components to systems.� Reduce emissions and

water pollutions

� Safe food and pharmaceuticals

Our core areasOur core areas

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Energy FoodEnvironment

The way forwardThe way forward

• Focus on R&D

• Efforts to explore profitable growth through structural changes

• Focus on the aftermarket to best serve our installed base

• Acquisitions

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• Acquisitions

Focus on R&D Focus on R&D -- FindingFinding new new valuesvalues for for customerscustomers whichwhich drive drive demanddemand

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MSEK

+46%+46%

Focus on R&DFocus on R&D-- investmentsinvestments

SEK Mln800800

600600

• R&D is the way to profitable growth

• Continued focus on R&D to develop new products as well as improve

existing

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20052005 20062006 20072007 20082008 20092009

400400

200200

existing

• 35 - 40 new products every year

• More than 300 patents

Structural changes- an opportunity

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FoodEnergy Environment

Energy demand seen rising -especially in non-OECD countries

Quadrillion Btu

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Source IEA May 2009Non-OECD

OECD

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Energy efficiencyEnergy efficiency

�cuts fuel costs

� increases competitiveness

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�reduces greenhouse gas emissions, pollution

�saves natural resources, which are limited

What is waste heat?What is waste heat?

1/3 1/3 wastewaste

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Sulphur burningSulphur burningacid plantacid plant

Around Around 65 MW 65 MW heat is heat is

evolvedevolved

2/32/3 steamsteam

Waste heat Waste heat –– an untapped potential!an untapped potential!

RenewableRenewable Energy Energy ConsumptionConsumption by by SourceSource

MoreMore Waste HeatWaste Heat

availableavailable from USfrom US

Industry Industry thanthan allall

renewablerenewable energyenergy

sourcessources combinedcombined!!

Qu

ad

rillio

nQ

uad

rillio

nB

tuB

tu

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SourceSource: US DOE / EIA : US DOE / EIA AnnualAnnual Energy Energy SurveySurvey 2006.2006.

sourcessources combinedcombined!!

Potential in the USPotential in the US

AvailableAvailableWaste heat (1)Waste heat (1)

HydroelectricHydroelectricPower (2)Power (2)

WoodWood BioFuelsBioFuels(3)(3)

Waste (4)Waste (4) GeothermalGeothermal WindWind Solar PVSolar PV

**Qu

ad

rillio

nQ

uad

rillio

n

By 2020:

� 900 million more people on the planet

� 700 million more people in urban areas

Increased Waste Water Treatment

EnvironmentEnvironment

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in urban areas

� 2,1 billion m3/yr fresh water gap

� Tighter legislation

TreatmentInvestments

Environment Environment -- driverdriver

Legislation

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FoodFood

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FoodFood

Urbanization and Urbanization and

Population Population growthgrowth

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Urbanization and Urbanization and

Living standardLiving standard

Food Food –– ourour offeringoffering

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Focus on the Focus on the aftermarketaftermarket

AftermarketAftermarketsalessales 28%28%

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Capital Capital salessales72 72 %%

1 800

2 000

2 200

2 400No of employeesNo of employees

Investments in the Investments in the aftermarketaftermarket

+35%+35%

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1 200

1 400

1 600

1 800

20052005 20062006 20072007 20082008 20092009 2010E2010E

Complementary acquisitionsComplementary acquisitions

Alfa Laval

� will continue to acquire companies that complement the existing business in terms of geographic presence, sales’

Products

Channels

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of geographic presence, sales’ channels or products

Presence

ContinuedContinued acquisitionsacquisitions

� Acquired 6 companies in 2009, adding

5% growth

� Target add 3-4 % sales growth/year

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1Q highlights1Q highlights

� Orders received dropped 13.1% to SEK 5,089 million.

� Net sales down 22.3% at SEK 5,381 million.

� Adjusted EBITA down 19% to SEK 1,012 million.

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� Adjusted EBITA margin increased to18.8%

- Positive currency effect SEK 95 million.

16 000

20 000

24 000

28 000

32 000

4 000

5 000

6 000

7 000

8 000

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12

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0

4 000

8 000

12 000

16 000

0

1 000

2 000

3 000

4 000

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarterQ

10

9Q

10

9

Q2

06

Q2

06

Q3

06

Q3

06

Q4

06

Q4

06

Q1

07

Q1

07

Q2

07

Q2

07

Q3

07

Q3

07

Q4

07

Q4

07

Q1

08

Q1

08

Q2

08

Q2

08

+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 quarterquarter, year on year, year on year

+xx%+xx%

--3%

3%

Q3

08

Q3

08

Q4

08

Q4

08

--15%

15%

--32%

32%

Q2

09

Q2

09

--37%

37%

Q1

06

Q1

06

+28%

+28%

Q3

09

Q3

09

--30%

30%

Q4

09

Q4

09

--12%

12%

--13%

13%

Q11

0Q

11

0

15,0

18,0

21,0

24,0

1 125

1 350

1 575

1 800

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

Adjusted EBITA / margin *Adjusted EBITA / margin *

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0,0

3,0

6,0

9,0

12,0

0

225

450

675

900

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

Q108Q108 Q109Q109 Q409Q409 Q110Q110Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q208Q208 Q308Q308 Q408Q408 Q209Q209 Q309Q309

Orders received by customer segmentOrders received by customer segment

Industrial EquipmentIndustrial Equipment

Marine & DieselMarine & Diesel

OEMOEM

LifeLife ScienceScience

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

Sequential development 1Q versus 4Q, Sequential development 1Q versus 4Q, at constant rates at constant rates

-

-

-

+

+

+

=

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SanitarySanitary

FoodFood

Parts & Parts & Service Service

-

-+

+

HighlightsHighlights

�� Champ Champ –– U.S. supplier of cooling equipment. U.S. supplier of cooling equipment.

�� U.S. service provider for plate heat exchangers. U.S. service provider for plate heat exchangers.

�� AstepoAstepo –– Italian provider of aseptic products.Italian provider of aseptic products.

Acquisitions in 2010Acquisitions in 2010

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�� Si fang Si fang –– Chinese supplier of sanitary productsChinese supplier of sanitary products

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