Financial update

Thomas ThuressonCFO

Alfa Laval Group

www.alfalaval.com

FinancialFinancialFinancialFinancial

FINANCIAL UPDATE

NOVEMBER 19, 2013

www.alfalaval.com

Group fundingUtilisation and maturity structure, status as per September 30, 2013

-Committed and utilised-Committed, not utilised-Not committed, utilised

SEK Bn

2

4

6

8

10

EIB

2014 20182016 2020

US PPSHB

Senior Facility

SEK

• Committed, not utilised SEK 4.0 Bn

• Utilised credits, > 75 % outside Senior Facility

• Maturity of SEK 7.3 Bn > 4 years

Senior Facility

SEK

www.alfalaval.com© Alfa Laval Slide 5

Foreign exchange

SEK million

Gains

Losses

Total

Exchange rate differences in the financial net, January - September

2012

320

- 87

233

2013

127

- 160

- 33

www.alfalaval.com© Alfa Laval Slide 6

Foreign exchange

SEK million

Translation effect

Transaction effect

Total

Average and closing rates refers to the rates applied as per

September 30, 2013

Estimated impact on adjusted EBITA from FX fluctuations

WY 13

Cl rates

- 240

- 25

- 265

WY 14

Av rates

- 73

- 15

- 88

WY 13

Av rates

- 167

- 25

- 192

www.alfalaval.com

0

100

200

300

400

500

600

0

1 000

2 000

3 000

4 000

5 000

6 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Step-up values up to 2017Closing balance and amortisation according to plan, SEK million

Closing balance Amortization

LBO-related Acquisitions Amortisation acc to plan

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Guidance- A summary

� Taxes in the P&L, 28 % of PBT

� R & D-spend in relation to total revenues, >= 2.5 %

� Capital expenditure in relation to total revenues, <= 2.0 %

� Dividend pay-out ratio, 40 – 50 % of adjusted EPS*

*) excluding net effect of step-up amortisation

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IFRS 11- Joint arrangements- New from 2014

� This will mean a change in the disclosure of joint venture

activities as far as the consolidated P & L and Balance-sheet is

concerned

� This will have an impact on Alfa Laval because of Alfdex and

possibly AlfaWall at a later stage

� The current impact on the consolidated P & L and Balance-

sheet will be found in a specific note

Expected impact on orders and sales from Alfdex

approximately SEK 200 million negative

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Order backlog development

0

10

20

30

40

50

60

70

80

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

% of LTM-sales

Order backlog % of LTM (last twelve months) sales

SEK millions

www.alfalaval.com

Order backlog as per Sept 30

For delivery next year

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

7,324

6,567

13,192

8,766

15,873

6,256

15,314

8,330

For delivery later than next year

200920082007

For next year,

SEK 8.0 Bn!

For delivery during the rest of current year

5,487

11,689

5,480

5,937

2010

SEK million at prevailing rates

2012

6,705

8,387

15,496

6,418

8,050

15,068

2011

15,071

7,993

6,672

2013

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Order backlog as per Sept 30 For delivery after December 31

SEK millions at prevailing rates

Other Segments

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

4,576

4,730

9,306

4,099

4,959

9,058

2,327

4,338

6,665

Marine & Diesel

20082006 2007

1,733

1,820

3,553

2005

7,705

3,655

4,050

2010

5,751

2,155

3,596 5,572

3,219

8,791

20122009 2011

8,650

3,508

5,142

Aalborg added SEK 2.0 Bn to Marine in 2011!

2013

5,336

3,063

8,399

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Sales2013 and 2014

BnSEK

LTM Q313 29.4

Change order backlog Q4, y-o-y + / - 0.0

Fx. Translation (clos rates 1309) - 0.5

Acquisitions (in-for-out) + 0.2

Demand & Price Q413 x / - 0.0

Full year 2013 appr 29.1

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BnSEK

Full year 2013 appr 29.1

Change in order backlog y-o-y - 0.4

Fx. Translation + / - 0.0

Acquisitions to date + 0.1

IFRS 11 - 0.2

Subtotal: 28.6

Price + / - ?

Demand + / - ?

Further acquisitions + ?

Full year 2014: ?

Sales2013 and 2014

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