report for q4 2012 - alfa laval · 2016. 10. 25. · highlights americas +16 -2 oct. oct. – dec....

Report for Q4 2012Report for Q4 2012

Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group

-- Key figures Key figures

--Orders received and marginsOrders received and margins

--Highlights Highlights

-- Development per segmentDevelopment per segment

-- Geographical developmentGeographical development

-- Financials Financials

-- OutlookOutlook

Key figuresKey figures

�� Orders received rose 7% to SEK 7,252 million.Orders received rose 7% to SEK 7,252 million.

�� Net sales unchanged at SEK 8,119 million.Net sales unchanged at SEK 8,119 million.

�� Adjusted EBITA declined 5% to SEK 1,316 million. Adjusted EBITA declined 5% to SEK 1,316 million.

�� Adjusted EBITA margin 16.2% Adjusted EBITA margin 16.2% vsvs 17.0%17.0%

-- Negative Negative currency effect SEK 63 million.currency effect SEK 63 million.

October October –– December 2012December 2012

www.alfalaval.com© Alfa Laval Slide 3

-- Negative Negative currency effect SEK 63 million.currency effect SEK 63 million.

January January –– December 2012December 2012

�� Orders received rose 6% to SEK 30,339 million.Orders received rose 6% to SEK 30,339 million.

�� Net sales increased 4% to SEK 29,813 million.Net sales increased 4% to SEK 29,813 million.

�� Adjusted EBITA declined 7% to SEK 4,910 million. Adjusted EBITA declined 7% to SEK 4,910 million.

�� Adjusted EBITA margin 16.5% Adjusted EBITA margin 16.5% vsvs 18.5%18.5%

-- Negative currency effect SEK 139 million.Negative currency effect SEK 139 million.

Board proposal to the AGMBoard proposal to the AGM

The Board of directors proposesThe Board of directors proposes

•• A dividend of 3.50 SEK (3.25)A dividend of 3.50 SEK (3.25)

•• A mandate to buy back up to 5 percent of the A mandate to buy back up to 5 percent of the

Dividend and share buybackDividend and share buyback


•• A mandate to buy back up to 5 percent of the A mandate to buy back up to 5 percent of the number of outstanding sharesnumber of outstanding shares

Report for Q4 2012Report for Q4 2012-- Key figures Key figures

--Orders received and marginsOrders received and margins

--Highlights Highlights




-- OutlookOutlook

16 000

20 000

24 000

28 000

32 000

5 000

6 000

7 000

8 000

9 000

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12

www.alfalaval.com

0

4 000

8 000

12 000

16 000

0

1 000

2 000

3 000

4 000

= = Order Order intake per intake per quarter quarter

= = Order Order intake per intake per quarter “large”quarter “large” = = Rolling Rolling twelve months valuetwelve months value

Q1

09

Q1

09

Q4

10

Q4

10

Q111

Q111

Q3

11

Q3

11

Q11

2Q

11

2

Q2

12

Q2

12

Q3

12

Q3

12

= % development at constant rates by = % development at constant rates by

quarter, year on yearquarter, year on year+XX%+XX%

Q4

12

Q4

12

Q4

08

Q4

08

Q2

09

Q2

09

Q3

09

Q3

09

Q4

09

Q4

09

Q11

0Q

11

0

Q2

10

Q2

10

Q3

10

Q3

10

Q2

11

Q2

11

+11

%+

11

%

Q4

11

Q4

11

+9

%+

9%

+2

3%

+2

3%

--9%

9%

--15

%1

5%

Order analysisOrder analysis

Q4 2011 Q4 2011 Q3 2012Q3 2012

Structural change, %Structural change, %

Organic development, %Organic development, %

TotalTotal

6,7746,774

Q4 2012 versus Q4 2011 and versus Q3 2012 (MSEK)Q4 2012 versus Q4 2011 and versus Q3 2012 (MSEK)

+ + 1.8 1.8

+ 8.9+ 8.9

+ 10.7+ 10.7

7,2887,288

+ 0.2 + 0.2

-- 1.41.4

-- 1.21.2


TotalTotal

Currency effects,%Currency effects,%

7,2527,252

+ 10.7+ 10.7

-- 3.63.6

7,2527,252

-- 1.21.2

+ 0.7+ 0.7

Total, %Total, %

Q4 2012 Q4 2012

+ 7.1 + 7.1 -- 0.50.5

Q4 2012 Q4 2012

12,012,0

15,015,0

18,018,0

21,021,0

24,024,0

900900

1 1251 125

1 3501 350

1 5751 575

1 8001 800

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

Adjusted EBITA / Adjusted EBITA / margin*margin*


0,00,0

3,03,0

6,06,0

9,09,0

12,012,0

00

225225

450450

675675

900900

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

Q211Q211 Q212Q212Q409Q409 Q110Q110 Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q311Q311 Q411Q411 Q112Q112 Q312Q312 Q412Q412


-- Orders received and marginsOrders received and margins

-- Highlights Highlights




-- OutlookOutlook

Large orders in 2012Large orders in 2012By focus areaBy focus area

Energy Energy EnvironmentEnvironment

FoodFood

SEK 215 millionSEK 215 million

www.alfalaval.com

Total SEK >2 500 million (>1 400) Total SEK >2 500 million (>1 400)

Energy Energy

SEK >1 540 millionSEK >1 540 million

EnvironmentEnvironment

SEK 745 millionSEK 745 million

Large orders in 2012Large orders in 2012By geographical area, total SEK >2 500 million (>1 400) By geographical area, total SEK >2 500 million (>1 400)

380 MSEK

300 MSEK

430 MSEK

www.alfalaval.com© Alfa Laval

>165 MSEK

>1 010 MSEK

430 MSEK

215 MSEK

VORTEX ASHBROOK GAMAJET ACE

Acquisitions in 2012Acquisitions in 2012


Mixing and blending

solutions for the

oil and gas industry.

Sales: 100 MSEK

Belt filter presses for

the dewatering of

municipal & industrial

waste water.

Sales : 500 MSEK

Tank cleaning

machines for the

industrial and sanitary

markets.

Sales: 75 MSEK

Air-cooled heat

exchangers for natural

gas and other energy

related markets.

Sales: 350 MSEK

Acquisition widens offeringAcquisition widens offeringHigh activity level in the gas marketHigh activity level in the gas market

Sales: Approximately SEK 350 million in 2012Profitability: Well above the average for the Alfa Laval Group

www.alfalaval.comSlide 13



-- Orders received and margins Orders received and margins




-- OutlookOutlook

Industrial EquipmentIndustrial Equipment

OEMOEM

Sanitary EquipmentSanitary Equipment

Orders received by customer segmentOrders received by customer segment

==

--

++

PTD Parts PTD Parts & Service& Service

Process IndustryProcess Industry

==

++

Oct. Oct. –– Dec. 2012, at constant rates and like for likeDec. 2012, at constant rates and like for like

www.alfalaval.com

EQD Parts EQD Parts & Service& Service

Equipment divisionEquipment division

Marine & Diesel divisionMarine & Diesel division

Process Technology divisionProcess Technology division

++

++

Marine & Diesel Marine & Diesel EquipmentEquipment

Marine & Offshore Marine & Offshore SystemsSystems

MDD Parts MDD Parts & & ServiceService

++

--

++

Food TechnologyFood Technology

Energy & EnvironmentEnergy & Environment ++

++

YearYear--onon--year comparisonyear comparison


�� Sanitary rose with good demand for products Sanitary rose with good demand for products

targeting all applications. targeting all applications.

�� Industrial Equipment declined, partly due to Industrial Equipment declined, partly due to

seasonality in HVAC, partly because of a nonseasonality in HVAC, partly because of a non--repeat repeat

large districtlarge district--heating order in the U.S. heating order in the U.S.

�� OEM grew, mainly driven by orders from customers OEM grew, mainly driven by orders from customers

making Air Conditioning and Air Dryer products. making Air Conditioning and Air Dryer products.

SanitarySanitary

12%*12%*

Industrial Industrial

EquipmentEquipment

13%13%

== --

++ ++

Highlights and sequential commentsHighlights and sequential comments

www.alfalaval.com

Order Sales Backlog

Q4 2012 2,397 2,495 1,583

Q4 2011 2,152 2,157 1,385

Slide 16

making Air Conditioning and Air Dryer products. making Air Conditioning and Air Dryer products.

�� P&S dropped somewhat, reflecting lower demand P&S dropped somewhat, reflecting lower demand

among HVAC applications.among HVAC applications.

OEMOEM

3%3%

Parts & ServiceParts & Service

5%5%

++ --

-- ++

== --


Sequential comparisonSequential comparison

*Share of Group total*Share of Group total


�� Food grew, supported by the base business and a Food grew, supported by the base business and a

strong recovery for vegetable oil projects in Asia. strong recovery for vegetable oil projects in Asia.

�� Energy & Environment declined as there were fewer Energy & Environment declined as there were fewer

large O&G contracts. Environment saw strong large O&G contracts. Environment saw strong

increase in orders. increase in orders.

�� Process Industry recorded growth, with a positive Process Industry recorded growth, with a positive ++ --

++ ++


Food Tech.Food Tech.

8%*8%*

Energy & Energy & EnvironEnviron..

10%10%

www.alfalaval.com

Order Sales Backlog

Q4 2012 3,476 3,748 8,358

Q4 2011 2,898 3,656 6,889

Slide 17

development in Refinery as well as Life Science.development in Refinery as well as Life Science.

�� P&S grew, with best development for Process P&S grew, with best development for Process

Industry applications.Industry applications.


14%14%

== ++

++ ++

++ --




16%16%



�� Marine & Diesel Equipment declined due to weaker Marine & Diesel Equipment declined due to weaker

demand for landdemand for land--based diesel power. The base based diesel power. The base

business showed a slight increase. business showed a slight increase.

�� Marine & Offshore Systems declined, reflecting the Marine & Offshore Systems declined, reflecting the

contracting at the yards earlier in the year. The first contracting at the yards earlier in the year. The first

Pure Pure SOSOxx order was booked.order was booked. ++ --

-- --


Marine & Diesel Marine & Diesel

Equipment Equipment

6%*6%*

Marine & Marine &

Offshore SystemsOffshore Systems

4%4%

www.alfalaval.com

Order Sales Backlog

Q4 2012 1,379 1,876 4,527

Q4 2011 1,722 2,334 5,462

Slide 18

Pure Pure SOSOxx order was booked.order was booked.

�� P&S rose mainly due to a good repair activity. P&S rose mainly due to a good repair activity.

++ ++

++ --




9%9%


Marine & Diesel DivisionMarine & Diesel Division

DriverShip building & Offshore

Marine environment Diesel power Parts & Service

Distribution of orders YTDDistribution of orders YTD


41%41%

Share

6%6% 13%13%

40%40%

Industrial EquipmentIndustrial Equipment

OEMOEM

Sanitary EquipmentSanitary Equipment

Orders received by customer segmentOrders received by customer segment

==

--

++

PTD Parts PTD Parts & Service& Service


==

++

January January –– December 2012, at constant rates and like for likeDecember 2012, at constant rates and like for like

www.alfalaval.com

EQD Parts EQD Parts & Service& Service




++

Marine & Diesel Marine & Diesel EquipmentEquipment

Marine & Offshore Marine & Offshore SystemsSystems

MDD Parts MDD Parts & & ServiceService

--

==

Food TechnologyFood Technology

Energy & EnvironmentEnergy & Environment ++

--

YearYear--onon--year comparisonyear comparison * New customer segment, no corresponding * New customer segment, no corresponding period last year exists.period last year exists.

**







-- OutlookOutlook

Orders received by RegionOrders received by Region

North America North America 19%19%

Asia Asia 32%32%

Latin Latin America America 6%6%

-34

+13

+16

+6

+25

Oct. Oct. –– Dec. 2012, development at constant ratesDec. 2012, development at constant rates


Central Central and and Eastern Eastern Europe 6%Europe 6%

Asia Asia 32%32%

Western Europe Western Europe 24%24%

Nordic Nordic 10%10%


+5

Highlights AsiaHighlights Asia

Oct. Oct. –– Dec. 2012, at constant rates, sequential commentsDec. 2012, at constant rates, sequential comments

Asia: Asia:

�� Process Industry, Food Technology and OEM Process Industry, Food Technology and OEM

were performing the best.were performing the best.

�� China affected by waitChina affected by wait--andand--see mode among see mode among

customers while India, South East Asia and the customers while India, South East Asia and the

Middle East delivered growth. Middle East delivered growth.

+13 +6




Highlights EuropeHighlights Europe


-34 -37

+6 +12

+25 +12




Western Europe incl. Nordic:Western Europe incl. Nordic:

�� Favourable development for Favourable development for

large orders, base business and large orders, base business and

Parts & Service.Parts & Service.

�� Most geographical areas Most geographical areas

reported growth.reported growth.

Central Central and Eastern and Eastern Europe: Europe:

�� Weak development in the quarter, due Weak development in the quarter, due

to fewer big orders being booked in to fewer big orders being booked in

Russia. Russia.

�� The base business in Russia was still The base business in Russia was still

unchanged and the general activity unchanged and the general activity

trend was positive. trend was positive.

Highlights AmericasHighlights Americas

+16 -2+16 -2


North North America: America:

�� Continued growth in the U.S., while Canada Continued growth in the U.S., while Canada

declined due to fewer large projects. The base declined due to fewer large projects. The base

business grew. business grew.

�� Sanitary, Food Technology as well as Parts & Sanitary, Food Technology as well as Parts &

Service had a positive development. Service had a positive development.




+5 -12+5 -12

Service had a positive development. Service had a positive development.

Latin America: Latin America:

�� Fewer large orders booked in the quarter explain Fewer large orders booked in the quarter explain

the sequential decline. the sequential decline.

�� The base business had a good development, The base business had a good development,

especially in the Marine and Process Technology especially in the Marine and Process Technology

divisions. divisions.

Top 10 markets*Top 10 markets*

Mid Europe

Korea, South

Nordic

China

United States

SEK million at prevailing ratesSEK million at prevailing rates


0 1 000 2 000 3 000 4 000 5 000

India

Brazil

Russia

Adriatic

South East Asia

Mid Europe

= = WY 2011WY 2011

= = WY 2012WY 2012 *The development of the 2011 top ten markets.*The development of the 2011 top ten markets.

Orders received by RegionOrders received by Region

North America North America 19%19%

Latin Latin America America 7%7%

+12

-1

+12

+9

+7

January January –– December 2012, development at constant ratesDecember 2012, development at constant rates


Central Central and and Eastern Eastern Europe 9%Europe 9%

Asia Asia 32%32%

Western Europe Western Europe 22%22%

Nordic Nordic 9%9%


+9


Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAlfa Laval GroupAlfa Laval Group







-- OutlookOutlook

HighlightsHighlights

Order intake Order intake

Net salesNet sales

SEK millionsSEK millions Oct. Oct. –– Dec. 2012Dec. 2012

7,2527,252

8,1198,119


Gross profit marginGross profit margin

5050

In percent of salesIn percent of sales

37.037.037.837.8

39.339.3

38.738.7


3030

404037.037.037.837.8

Q212Q212

38.738.7

Q412Q412Q409Q409 Q110Q110 Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q211Q211 Q311Q311 Q411Q411 Q112Q112 Q312Q312

HighlightsHighlights

Order intake Order intake

Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

SEK millionsSEK millions Oct . Oct . –– Dec. 2012Dec. 2012

7,2527,252

8,1198,119

1,3161,316

16.2% 16.2%


Profit before taxProfit before tax

Earnings per shareEarnings per share

Earnings per share, excl stepEarnings per share, excl step--upup

ROCEROCE

ROEROE

1,1891,189

2.132.13

2.302.30

26.1%26.1%

21.6%21.6%

Cash flow fromCash flow from

-- operating activitiesoperating activities

-- investing activitiesinvesting activities

Financial Financial net paidnet paid

DividendDividend

CashCash--flow statement flow statement

SEK millionsSEK millions

Jan Jan –– DecDec

20122012

Jan Jan –– DecDec

20112011

3,5863,586

-- 3,2603,260

-- 5151

--1,3631,363

3,4293,429

-- 5,4975,497

105105

--1,2581,258


DividendDividend

TotalTotal

Pro Forma Pro Forma Free cashFree cash--flowflow**

--1,3631,363

3,0043,004

--1,2581,258

2,9792,979

-- 1,0881,088 -- 3,2213,221

Q4 Pro Forma Free cashQ4 Pro Forma Free cash--flow*flow**Incl. operating activities, capital expenditure and financial net paid. *Incl. operating activities, capital expenditure and financial net paid.

712712 983983

Foreign exchangeForeign exchange


Translation effectTranslation effect

Transaction effectTransaction effect

TotalTotal

Estimated impact on adjusted EBITA from FX fluctuationsEstimated impact on adjusted EBITA from FX fluctuations

FY 13*FY 13*

-- 120120

-- 2020

-- 140140

FY 12FY 12

-- 11

--138138

-- 139139

Q4 12Q4 12

-- 3232

-- 3131

-- 6363


TotalTotal

*Based on EUR/USD 1.33 and EUR/SEK 8.60*Based on EUR/USD 1.33 and EUR/SEK 8.60

-- 140140-- 139139

Projected FXProjected FX--effect for 2012 as communicated with the Q3 report effect for 2012 as communicated with the Q3 report SEK SEK --155 million 155 million

-- 6363

Order backlog as per Dec. 31 Order backlog as per Dec. 31

SEK millionsSEK millions

8 0008 000

10 00010 000

12 00012 000

14 00014 000

16 00016 00014,46814,468

2,8992,899

13,73613,736

2,4462,446


For delivery For delivery in 2013in 2013

00

2 0002 000

4 0004 000

6 0006 000

8 0008 000

For delivery For delivery later than 2013later than 2013

Q408Q408 Q409Q409 Q410Q410 Q411Q411 Q412Q412

1.0

31.0

3

0.8

90.8

9

0.8

30.8

3

1.1

61.1

6

1.0

11.0

1

BookBook

to billto bill

11,56911,56911,29011,290

6 500

7 000

7 500

8 000

8 500

6 500

7 000

7 500

8 000

8 500


Order intake level Order intake level -- last four quarterslast four quarters

www.alfalaval.com

4 000

4 500

5 000

5 500

6 000

4 000

4 500

5 000

5 500

6 000

= = OI/quarter OI/quarter

= = OI/quarter “large”OI/quarter “large”

Q112Q112 Q212Q212 Q312Q312 Q412Q412

Newly acquired ACE expected to add SEK 100 Newly acquired ACE expected to add SEK 100 mlnmln/Q going forward/Q going forwardAdverse translation effect, based on closing rates, seen at SEK 150 Adverse translation effect, based on closing rates, seen at SEK 150 mlnmln/Q/Q

SalesSales

SEK (SEK (blnbln))

Full year 2012Full year 2012 29.829.8

Order backlog, likeOrder backlog, like--forfor--likelike -- 0.10.1

FXFX--translation translation -- 0.60.6

AcquisitionsAcquisitions ++ 0.70.7

Full year 2013Full year 2013

www.alfalaval.com

AcquisitionsAcquisitions ++ 0.70.7

SubtotalSubtotal 29.829.8

Orders “inOrders “in--forfor--out” ?out” ?

Price ?Price ?

Full year 2013Full year 2013


Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group







-- OutlookOutlook

Outlook for the first quarterOutlook for the first quarter

“We expect that demand “We expect that demand

during the first quarter 2013 during the first quarter 2013


during the first quarter 2013 during the first quarter 2013

will be on about the same will be on about the same

level as in the fourth quarter.”level as in the fourth quarter.”

Cautionary statementCautionary statement

This presentation contains forward-looking statements that are based on the

current expectations of the management of Alfa Laval Group.

Although management believes that the expectations reflected in such forward-

looking statements are based on reasonable assumptions, no assurance can be

given that such expectations will prove to have been correct. Accordingly, results

could differ materially from those implied in the forward-looking statements as a

result of, among other factors, changes in economic, market and competitive

www.alfalaval.com

result of, among other factors, changes in economic, market and competitive

conditions, changes in the regulatory environment, other government actions and

fluctuations in exchange rates. Alfa Laval undertakes no obligation to publicly

update or revise these forward-looking statements, other than as required by law

or other regulations.

© Alfa Laval Slide 40

report for q4 2012 - alfa laval · 2016. 10. 25. · highlights americas +16 -2 oct. oct. – dec....

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