evli bank engineering seminar – ”europe in focus ... · russia orders received*: sek 720...

EvliEvli BankBankEngineering seminar Engineering seminar –– ””Europe in focusEurope in focus””

Stockholm Stockholm –– May 30, 2006May 30, 2006

Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAlfa Laval GroupAlfa Laval Group

-- An introductionAn introduction-- Alfa Laval in EuropeAlfa Laval in Europe-- Q1 Q1 –– forward looking informationforward looking information

Strong market Strong market positions and global positions and global presencepresence

© Alfa Laval Slide 3 www.alfalaval.com

Alfa Laval in a nutshell

• Sales: approx SEK 17,150* million

• 20 production units• Sales companies in 55 countries • Sales representation in another 45 countries

• Employees: approx. 10,000

* April 1, 2005 – March 31, 2006


Key Key technologiestechnologies

Separation

Fluid handling

Heat transfer


Sales per key technologySales per key technology

Heat transferHeat transfer48%48%

SeparationSeparation31%31%

Fluid handlingFluid handling14%14%

Heat transfer Separation Fluidhandling

Market share> 30%

Market share25–30%

Market share10%


Comfort & RefrigerationComfort & Refrigeration

MarineMarine

BreweryBreweryPharmacy / BiotechPharmacy / Biotech

Examples of endExamples of end--usersusers

Process IndustryProcess Industry


FoodFood EnvironmentEnvironment Oil & gasOil & gas

Examples of endExamples of end--usersusers

Bio fuelsBio fuels


Diversified customer base

Comfort & RefrigerationComfort & Refrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & UtilityOEMOEM

Parts & ServiceParts & Service

Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

Orders received January – December 2005


Orders received from energy and energy related industryOrders received from energy and energy related industry

Energy and energy related industryEnergy and energy related industry

approx. 40%


V

Financial TargetsFinancial Targets

Growth > 5%

EBITA-margin 10 - 13%

ROCE > 20%


-- An introductionAn introduction-- Alfa Laval in EuropeAlfa Laval in Europe-- Financial targets Financial targets –– dividend policydividend policy


Regional distribution of ordersRegional distribution of orders

Centr

Centr . & East 8 %

. & East 8 %

North America 15 %

North America 15 %

Asia 29 %Asia 29 %

L. America 5 %

L. America 5 %

Other 2 %

Other 2 %

Western EuropeWestern Europe30 %30 %

Nordic 10 %

Nordic 10 %

Orders received January – December 2005


Order development - Europe 2001- 2006

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2001 2002 2003 2004 2005 2006 R12

Europe

WesternEurope

EasternEurope

SEK M


Regional distribution of orders and Regional distribution of orders and employeesemployeesEurope

Orders received*: SEK 9,750 million % of Group: 48%

No of employees: 5 875Sales divisions: 3,175Operations division: 2,700

* April 1, 2005 – March 31, 2006


Local presenceLocal presenceManufacturing locations in Europe

Heat transfer products

Separation products

Fluid handling products


Cost structure Cost structure –– productsmanufactured in-house % of COGS

0%

20%

40%

60%

80%

100%

Materials &Subcontracting, 65-70%

Direct labour, 5-8%Indirect salaries & wages, 5-8%Depreciation & facilities, 6-9%Repair, maintenance, 8-10%


Direct labor hours in Asia

42%


Local presence within EuropeLocal presence within Europe

Nordic

Orders received*: SEK 2,000 million% of Europe: 20%Largestsegments: Sanitary,

Comfort & Refrigeration

Employees: 3,100Sales divisions: 1,400Operations division: 1,700

* April 1, 2005 – March 31, 2006



UK and Ireland

Orders received*: SEK 1,100 million% of Europe: 11 %Largestsegments: Process

Industry,Energy &Environment

Employees: 300Sales divisions: 200Operations division: 100

* April 1, 2005 – March 31, 2006



Benelux

Orders received*: SEK 830 million% of Europe: 8%Largestsegments: Process

Industry,Sanitary

Employees (sales): 200

* April 1, 2005 – March 31, 2006



Mid Europe

Orders received*: SEK 1,385 million% of Europe: 14%Largestsegments: Marine &

Diesel and Sanitary


* April 1, 2005 – March 31, 2006



France

Orders received*: SEK 1,050 million% of Europe: 11%Largestsegments: Energy &

Environment(Oil & Gas)


* April 1, 2005 – March 31, 2006



Iberica

Orders received*: SEK 600 million% of Europe: 6%Largestsegments: Food,

Energy &Environment


* April 1, 2005 – March 31, 2006



Adriatic

Orders received*: SEK 1,150 million% of Europe: 12%Largestsegments: OEM, FoodEmployees: 550Sales divisions: 230Operations division: 320

* April 1, 2005 – March 31, 2006



South East Europe

Orders received*: SEK 80 million% of Europe: 1%Largestsegments: Marine,

ProcessIndustry


* April 1, 2005 – March 31, 2006



Central Europe

Orders received*: SEK 250% of Europe: 3%Largestsegments: OEM,

Comfort & Refrigeration


* April 1, 2005 – March 31, 2006


Local presence within EuropeLocal presence within EuropePoland &Baltic states

Orders received*: SEK 260 million% of Europe: 3%Largestsegments: Sanitary,

Comfort &Refrigeration


* April 1, 2005 – March 31, 2006



Romania

Orders received*: SEK 50 million% of Europe: 0.5%Largestsegments: Marine,



* April 1, 2005 – March 31, 2006


Local presence within EuropeLocal presence within EuropeTurkey, Azerbaijan, Armenia,& Georgia

Orders received*: SEK 215 million% of Europe: 2%Largestsegments: Marine,

ProcessIndustry


* April 1, 2005 – March 31, 2006



Ukraine & Moldova

Orders received*: SEK 230 million% of Europe: 2%Largestsegments: FoodEmployees (sales): 10

* April 1, 2005 – March 31, 2006



Russia

Orders received*: SEK 720 million% of Europe: 7%Largestsegments: Food,



* April 1, 2005 – March 31, 2006

-- An introductionAn introduction-- Alfa Laval in EuropeAlfa Laval in Europe-- Q1 Q1 –– forward looking informationforward looking information



Order backlog as per March 31

0

1000

2000

3000

4000

5000

6000

7000

2004 2005 2006

5,8374,840 6,700

For delivery in the current yearSEK million


Gross profit marginGross profit margin

In percent of salesIn percent of sales

Q203Q203 Q303Q303 Q403Q403 Q104Q104 Q204Q204 Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106Q103Q10320

30

40

50

38.938.9

37.037.039.039.0

40.040.0

Seasonality!Seasonality!

Q206Q206 Q406Q406Q306Q306


Outlook for the near future after Q1Outlook for the near future after Q1

““In most of the markets, geographical In most of the markets, geographical as well as customer segments, thatas well as customer segments, thatAlfa Laval serves a continued very Alfa Laval serves a continued very strong demand is expected.strong demand is expected.””


Six-year development

5000

6000

7000

8000

9000

10000

11000

12000

13000

14000

15000

16000

17000

18000

19000

20000

2000 2001 2002 2003 2004 2005 2006R12M

Orders received

Net salesAdj EBITA-margin

SEK M

Targ

etra

nge

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

%



Israel

Orders received*: SEK 45 million% of Europe: 0.5%Largestsegments: Energy &

EnvironmentEmployees (sales): 5

* April 1, 2005 – March 31, 2006


Macro considerationsMacro considerationsfor Europefor Europe

Labour legislationeducation

cost

Logistics /Transportation

cost

environmenttime

Environment

Taxation

EU

evli bank engineering seminar – ”europe in focus ... · russia orders received*: sek 720...

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