© alfa laval slide 1 · znet sales up 34% to sek 5,150 million. zadjusted ebita up 59% to sek 835...

Interim Report Q1 2007Interim Report Q1 2007

Mr. Lars RenstrMr. Lars RenströömmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group

-- Orders received and operating marginOrders received and operating margin-- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Key figuresKey figures

Orders received up 36% to SEK 7,005 million.Orders received up 36% to SEK 7,005 million.Net sales up 34% to SEK 5,150 million.Net sales up 34% to SEK 5,150 million.

Adjusted EBITA up 59% to SEK 835 (525) million. Adjusted EBITA up 59% to SEK 835 (525) million.

-- negative currency effect SEK 79 million.negative currency effect SEK 79 million.

January January –– March 2007March 2007


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 000SEK millionSEK million

Q10

4Q

104

Q20

4Q

204

Q30

4Q

304

Q40

4Q

404

Q10

5Q

105

Orders receivedOrders receivedSEK million R 12SEK million R 12

Q20

5Q

205

= rolling twelve months value

= order intake per quarter

Q30

5Q

305

Q40

5Q

405

Q10

6Q

106

Q20

6Q

206

Q30

6Q

306

= % development at constant rates by quarter year on year

+22%

+22%

+20%

+20%

+15%

+15%

+ 5

%+

5%

+ 5

%+

5%

+ 9

%+

9%

+25%

+25%

+23%

+23%

+28%

+28%

+35%

+35%

+17%

+17%

+xx%

+40%

+40%

Q40

6Q

406

Q10

7Q

107

+36%

+36%


Order analysisOrder analysis

2006 2006 (SEK million)(SEK million)

Structural change, %Structural change, %Currency effects,%Currency effects,%Organic development, %Organic development, %Total, %Total, %2007 2007 (SEK million)(SEK million)

5,4815,481

Jan Jan –– Mar 07Mar 07

7,0057,005

++ 6 6 -- 8 8 + 30 + 30 + 28+ 28


0

200

400

600

800

1 000

1 200

0,0

3,0

6,0

9,0

12,0

15,0

18,0

SEK million and in percent of salesSEK million and in percent of sales

* Adjusted EBITA – ”Earnings bef ore interests, taxes, amortization ofgoodwill and step up v alues and comparison distortion items.”

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q104Q104 Q204Q204 Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107



-- Orders received and operating marginsOrders received and operating margins-- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Highlights during the quarterHighlights during the quarterLarge orders, total SEK 435 million (220) Large orders, total SEK 435 million (220)


Highlights during the quarterHighlights during the quarterLarge ordersLarge orders

Environmental equipment to City of Toronto.Environmental equipment to City of Toronto.Treatment of waste water sludge. Total value SEK 50 million.Treatment of waste water sludge. Total value SEK 50 million.Delivery during 2008.Delivery during 2008.



Environmental equipment to City of Toronto.Environmental equipment to City of Toronto.Petrochemical orders from Chinese customers.Petrochemical orders from Chinese customers.Alfa Laval Alfa Laval PackinoxPackinox customcustom--designed heat exchangers.designed heat exchangers.Total value SEK 180 million. Delivery during 2008.Total value SEK 180 million. Delivery during 2008.



Environmental equipment to City of Toronto.Environmental equipment to City of Toronto.Petrochemical orders from Chinese customers.Petrochemical orders from Chinese customers.Soy protein order from China.Soy protein order from China.Membrane separation products. Total value SEK 55 million.Membrane separation products. Total value SEK 55 million.Delivery during 2007.Delivery during 2007.



Environmental equipment to City of Toronto.Environmental equipment to City of Toronto.Petrochemical orders from Chinese customers.Petrochemical orders from Chinese customers.Soy protein order from China.Soy protein order from China.Marine orders from fast growing Vietnam.Marine orders from fast growing Vietnam.Total value SEK 50 million. Delivery during 2007 and 2008.Total value SEK 50 million. Delivery during 2007 and 2008.



Environmental equipment to City of Toronto.Environmental equipment to City of Toronto.Petrochemical orders from Chinese customers.Petrochemical orders from Chinese customers.Soy protein order from China.Soy protein order from China.Marine orders from fast growing Vietnam.Marine orders from fast growing Vietnam.Refinery orders from the US and Taiwan.Refinery orders from the US and Taiwan.Total value SEK 100 million. Delivery during 2008.Total value SEK 100 million. Delivery during 2008.


Highlights during the quarterHighlights during the quarterAcquisitionsAcquisitions

Dutch company Dutch company HelpmanHelpman, turnover SEK 200 million. , turnover SEK 200 million. One of the leading companies in Europe for air heat exchangers uOne of the leading companies in Europe for air heat exchangers used in the sed in the

sensitive logistical chain in food. 130 employees. Consolidated sensitive logistical chain in food. 130 employees. Consolidated April 4.April 4.



Dutch company Dutch company HelpmanHelpman, turnover SEK 200 million., turnover SEK 200 million.US company DSO, turnover SEK 50 million. US company DSO, turnover SEK 50 million. Manufacturer of parts for pumps and valves that strengthens the Manufacturer of parts for pumps and valves that strengthens the position position on the American sanitary market. 20 employees. Consolidated Marcon the American sanitary market. 20 employees. Consolidated March 16. h 16.



Dutch company Dutch company HelpmanHelpman, turnover SEK 200 million., turnover SEK 200 million.US company DSO, turnover SEK 50 million. US company DSO, turnover SEK 50 million. Offer to purchase an additional 26 percent ofOffer to purchase an additional 26 percent ofAlfa Laval India.Alfa Laval India.Intention to increase the share of Alfa Laval India from 64 to 9Intention to increase the share of Alfa Laval India from 64 to 90 percent. 0 percent. The offer price represents a total value of approximately SEK 70The offer price represents a total value of approximately SEK 700 0

million.million.



-- Orders received and operating margin Orders received and operating margin -- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Orders received by SegmentOrders received by Segment

Comfort & RefrigerationComfort & Refrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

Parts & ServiceParts & Service

Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

January January –– March 2007, March 2007, at constant ratesat constant rates

++

++

+

+

+

+

−

+


Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

+

+

+

−

Orders received by SegmentOrders received by SegmentThe Process Technology Division, January The Process Technology Division, January –– March 2007,March 2007,at constant rates and for comparable unitsat constant rates and for comparable units

Strong developmentStrong developmentfor bio fuels, alsofor bio fuels, alsooutside the USoutside the US..

Best base business everBest base business everin the Process Industryin the Process Industrysegment.segment.

Increased activity in theIncreased activity in thebiotech market,biotech market,particularly in the US.particularly in the US.


Comfort & RefrigerationComfort & Refrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

++

+

Orders received by SegmentOrders received by SegmentThe Equipment Division, January The Equipment Division, January –– March 2007, March 2007, at constant rates and for comparable unitsat constant rates and for comparable units

Continued strongContinued strongmarine market.marine market.

Very strong quarter forVery strong quarter forOEM, benefiting fromOEM, benefiting froma good market fora good market forheat pumps.heat pumps.

Sanitary remains onSanitary remains ona high level.a high level.

+

+


EnvironmentEnvironmentIncreased need world-wide for efficient handling of waste water and sludge.

Large orders in Q1 2007 from Canada (City of Toronto) and the US (Cities of Houston and Atlanta).

New decanter ALDEC G2 is up to 30% more efficient.



-- Orders received, margins and dividend Orders received, margins and dividend -- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Orders received by RegionOrders received by Region

CentrCentr. & East 8 %

. & East 8 %

North America 19%

North America 19%

Asia 31%Asia 31%

L. Am

erica 5 %L. A

merica 5 %

Oth e r 1 %

Oth e r 1 %

Western EuropeWestern Europe27 %27 %

Nordic 9 %

Nordic 9 %

+60+60


+50+50 +25+25

+23+23

+52+52

--77

% development at constant rates by quarter year on year


Highlights AmericasHighlights Americas

North AmericaNorth AmericaStrong business climate inenergy-related industries withfocus on bio ethanol.Good development for Tranter.

Latin AmericaLatin AmericaStrong development in the aftermarket.Focus on the Equipment Divisionhas resulted in very good developmentin base business.



+50+50

+52+52


Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. NordicStrong development in Strong development in base sales.base sales.Best development inBest development in RefrigerationRefrigerationand OEM.and OEM.

Central and Eastern EuropeCentral and Eastern EuropeGood growth in base sales.Good growth in base sales.Large food contracts in Russia andLarge food contracts in Russia andUkraine in Q1 2006 have not beenUkraine in Q1 2006 have not beenrepeated.repeated.



+25+25

+23+23

--77


Highlights AsiaHighlights Asia

AsiaAsiaVery strong growth with best Very strong growth with best development in China and Korea.development in China and Korea.Continued strong order intakeContinued strong order intakein the Marine segment.in the Marine segment.



+60+60


Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAlfa Laval GroupAlfa Laval Group

-- Orders received and operating margin Orders received and operating margin -- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


HighlightsHighlights

Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmargin

7,0057,0055,1505,150

83583516.2%16.2%

SEK millionSEK million Jan Jan –– Mar 07Mar 07


Gross profit marginGross profit margin

20

30

40

50In percent of salesIn percent of sales

Q104Q104

38.938.938.938.937.037.0

Q204Q204 Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106

39.039.0

Q206Q206 Q306Q306 Q406Q406 Q107Q107



Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before tax


7,0057,0055,1505,150

83583516.2%16.2%

681681


Earnings per shareEarnings per share

EarningsEarnings

Earnings, excluding stepEarnings, excluding step--upup

20072007

4.114.11

4.634.63

20062006

2.902.90

3.403.40

Jan Jan -- MarMar



Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before taxCash flow from operating activitiesCash flow from operating activitiesROCE ROCE


7,0057,0055,1505,150

83583516.2%16.2%

681681550550

36.9%36.9%


Cash flows fromCash flows from-- operating activitiesoperating activities-- investing activitiesinvesting activities

Financial Financial netnet paidpaidTotalTotal

CashCash--flow statementflow statement

Pro Forma FreePro Forma Free--cashcash--flow*flow*

*Incl. operating activities, capital expenditure (excl. product *Incl. operating activities, capital expenditure (excl. product rights), provisions and financial net paidrights), provisions and financial net paid. .

SEK millionSEK millionQ1Q1

20072007Q1Q1

20062006

550550-- 146146-- 3232

372372

464464

392392-- 1,2851,285

1111-- 882882

339339


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effectTransaction effectTransaction effect

TotalTotal

*Based on EUR/USD 1.35 and EUR/SEK 9.20*Based on EUR/USD 1.35 and EUR/SEK 9.20

Estimated impact on adjusted EBITA from Estimated impact on adjusted EBITA from FxFx. fluctuations. fluctuations

Q1 2007Q1 2007

-- 2020-- 5959-- 7979

WY 07*WY 07*

-- 8080-- 150 150 -- 230230

WY 08*WY 08*

-- 1010-- 90 90

-- 100100


Order backlog as per March 31SEK million

For delivery during rest of current year

0

2000

4000

6000

8000

10000

12000

14000

16000

2005 2006 2007

5,051

8,780

13,831

2,940

6,893

9,833

743

5,094

4,763

For delivery in the later years



--Orders received and operating margin Orders received and operating margin -- HighlightsHighlights-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook


Outlook for the near futureOutlook for the near future

““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.””

© alfa laval slide 1 · znet sales up 34% to sek 5,150 million. zadjusted ebita up 59% to sek 835...

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