© 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