q408 presentation 090204 fff [kompatibilitetsläge]...year 2008 mr. lars renström president and ceo...
TRANSCRIPT
04/02/2009
© Alfa Laval
04/02/2009
© Alfa Laval 1
Report for Q4 and full year Report for Q4 and full year 20082008
-- Orders received and marginsOrders received and margins-- HighlightsHighlights
D l t tD l t t
Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook
Key figuresKey figures
Orders received dropped 15% to SEK 6,181 million.Orders received dropped 15% to SEK 6,181 million.
October October –– December 2008December 2008
Net sales rose 4.4% to SEK 8,096 million.Net sales rose 4.4% to SEK 8,096 million.
Adjusted EBITA up 2.7% at SEK 1,721 million. Adjusted EBITA up 2.7% at SEK 1,721 million.
-- Negative currency effect SEK 65 million.Negative currency effect SEK 65 million.
January January –– December 2008December 2008
Orders received down 0.4% at SEK 27,464 million.Orders received down 0.4% at SEK 27,464 million.
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Net sales rose 11.5% to SEK 27,850 million.Net sales rose 11.5% to SEK 27,850 million.
Adjusted EBITA up 23.7% at SEK 6,160 million. Adjusted EBITA up 23.7% at SEK 6,160 million.
-- Negative currency effect SEK 291 million.Negative currency effect SEK 291 million.
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Proposed dividendProposed dividendProposed dividend for 2008Proposed dividend for 2008
The board of Directors proposes a dividend of 2:25 SEK (2:25).The board of Directors proposes a dividend of 2:25 SEK (2:25).
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7 000
8 000
28 000
32 000
SEK millionSEK million
Orders receivedOrders receivedSEK million R 12SEK million R 12
2 000
3 000
4 000
5 000
6 000
7 000
8 000
12 000
16 000
20 000
24 000
28 000
%% %% %% %% %% %% %% %% %% %% %% %% %%
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0
1 000
0
4 000
= rolling twelve months value= rolling twelve months value
= order intake per quarter= order intake per quarter
Q40
5Q
405
Q10
6Q
106
Q20
6Q
206
Q30
6Q
306
Q40
6Q
406
Q10
7Q
107
Q20
7Q
207
Q30
7Q
307
Q40
7Q
407
Q10
8Q
108
Q20
8Q
208
+23%
+23%
+28%
+28%
+35%
+35%
+17%
+17%
+40%
+40%
+36%
+36%
+13%
+13%
+30%
+30% 0%0% +9%
+9%
+8%
+8%
= % development at constant rates by = % development at constant rates by quarter year on yearquarter year on year
+xx%+xx%
--3%3%
Q30
8Q
308
Q40
8Q
408
--15%15%
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© Alfa Laval 3
Order analysisOrder analysis
2007 2007 (SEK millions)(SEK millions) 6,5766,576
October October –– December 2008December 2008
Structural change, %Structural change, %Currency effects,%Currency effects,%Organic development, %Organic development, %Total, %Total, %2008 2008 (SEK million)(SEK million) 6,1816,181
+ 2.5 + 2.5 + 9.0 + 9.0 --17.517.5-- 6.0 6.0
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Organic development 7000
%%
MarineMarinecancellationscancellations
5000
6000 -- 7%7%
-- 4,5%4,5%
-- 6%6%
ca ce a o sca ce a o s
MarineMarineordersorders--35%35%
OrdersOrdersotherother
segmentssegments--7%7%
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4000
Q4 07Q4 07 Q4 08Q4 08
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© Alfa Laval 4
1 575
1 800
21 0
24,0
SEK millions and in percent of salesSEK millions and in percent of sales
Adjusted EBITA / margin *Adjusted EBITA / margin *
450
675
900
1 125
1 350
1 575
6,0
9,0
12,0
15,0
18,0
21,0
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0
225
0,0
3,0
* 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.”
Q108Q108Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q208Q208 Q308Q308 Q408Q408
-- Orders received and marginsOrders received and margins-- HighlightsHighlights
D l t tD l t t
Report for Q4 and full Report for Q4 and full year 2008year 2008
Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook
04/02/2009
© Alfa Laval 5
Highlights during the quarterHighlights during the quarterLarge orders, total SEK 335 million (160) Large orders, total SEK 335 million (160)
Power order in China.Power order in China.Order value SEK 50 million. Delivery during 2010.Order value SEK 50 million. Delivery during 2010.
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Highlights during the quarterHighlights during the quarter
Power order in China.Power order in China.
Large orders, total SEK 335 million (160) Large orders, total SEK 335 million (160)
Oil treatment order for power plant in Saudi Arabia.Oil treatment order for power plant in Saudi Arabia.Order value SEK 70 million. Delivery during 2009.Order value SEK 70 million. Delivery during 2009.
www.alfalaval.com© Alfa Laval Slide 11
04/02/2009
© Alfa Laval 6
Highlights during the quarterHighlights during the quarter
Power order in China.Power order in China.
Large orders, total SEK 335 million (160) Large orders, total SEK 335 million (160)
Oil treatment order for power plant in Saudi ArabiaOil treatment order for power plant in Saudi Arabia..
Petrochemical order in South Korea.Petrochemical order in South Korea.Order value SEK 120 million. Delivery during 2010.Order value SEK 120 million. Delivery during 2010.
www.alfalaval.com© Alfa Laval Slide 12
Highlights during the quarterHighlights during the quarter
Power order in China.Power order in China.
Large orders, total SEK 335 million (160) Large orders, total SEK 335 million (160)
Oil treatment order for power plant in Saudi ArabiaOil treatment order for power plant in Saudi Arabia..
Petrochemical order in South Korea.Petrochemical order in South Korea.
Clean technology order for U.S. power plant.Clean technology order for U.S. power plant.Order value SEK 95 million. Delivery during 2009.Order value SEK 95 million. Delivery during 2009.
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04/02/2009
© Alfa Laval 7
-- Orders received and marginsOrders received and margins-- HighlightsHighlights
D l t tD l t t
Report for Q4 and full Report for Q4 and full year 2008year 2008
Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook
Orders received by SegmentOrders received by Segment
Comfort & Comfort & RefrigerationRefrigeration
October October –– December 2008, December 2008, at constant ratesat constant rates
−gg
SanitarySanitary
Marine & DieselMarine & Diesel
Fluids & UtilityFluids & Utility
OEMOEMLife ScienceLife Science
Process IndustryProcess Industry
−Parts & ServiceParts & Service +
+
−−
−
+
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Energy & EnvironmentEnergy & Environment
FoodFood
+−
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© Alfa Laval 8
Orders received by SegmentOrders received by SegmentThe Process Technology Division, October The Process Technology Division, October –– December 2008, December 2008, at constant ratesat constant rates
Lower activity in brewery Lower activity in brewery & vegetable oil industries& vegetable oil industries
Sl d d i PSl d d i PSlow demand in ProcessSlow demand in ProcessIndustry Industry -- except refineryexcept refinery
Positive development Positive development for Power boosted E&Efor Power boosted E&E
Life ScienceLife Science
Process IndustryProcess Industry
+
−
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Energy & EnvironmentEnergy & Environment
FoodFood
+−
Orders received by SegmentOrders received by SegmentThe Equipment Division, October The Equipment Division, October –– December 2008, December 2008, at constant ratesat constant rates
− Comfort & Comfort & RefrigerationRefrigeration
Slowdown in Marine.
Postponed dairy projects affected Sanitary.
Strong development for OEM following continued
SanitarySanitary
Fluids & UtilityFluids & Utility
OEMOEM
−
−
−
+
gg
Marine & DieselMarine & Diesel
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OEM following continued demand for heat-pumps and AC.
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Orders received by SegmentOrders received by Segment
Comfort & Comfort & RefrigerationRefrigeration
Parts & ServiceParts & Service
January January –– December 2008, December 2008, at constant ratesat constant rates
+−
Marine & DieselMarine & Diesel
Fluids & UtilityFluids & Utility
OEMOEM
Life ScienceLife Science
Process IndustryProcess Industry
E & E i tE & E i t
+
+=
+
=−
−
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SanitarySanitary
Energy & EnvironmentEnergy & Environment
FoodFood
+−
−
-- Orders received and marginsOrders received and margins-- HighlightsHighlights
D l t tD l t t
Report for Q4 and full Report for Q4 and full year 2008year 2008
Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook
04/02/2009
© Alfa Laval 10
Orders received by RegionOrders received by RegionOctober October –– December 2008, December 2008, at constant ratesat constant rates
--77
Asia 28 %Asia 28 %
--4444--55
--2727
--1111
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North AmericaNorth America
Highlights AmericasHighlights AmericasOctober October –– December 2008, December 2008, at constant ratesat constant rates
North America North America Base orders were stable.Base orders were stable.Orders on an unchanged level for Orders on an unchanged level for Equipment, negative development for Equipment, negative development for Process Process Technology.Technology.
Latin America Latin America Region pressured by lower order intake Region pressured by lower order intake in Argentina and Brazil, mainly for in Argentina and Brazil, mainly for Refrigeration and Process Industry. Refrigeration and Process Industry.
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Energy & Environment and Food Energy & Environment and Food performed well.performed well.
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Highlights EuropeHighlights Europe
Western Europe incl NordicWestern Europe incl Nordic
October October –– December 2008, December 2008, at constant ratesat constant rates
Western Europe incl. NordicWestern Europe incl. NordicWeaker development for Weaker development for Equipment division, except OEM.Equipment division, except OEM.Base orders were unchanged.Base orders were unchanged.
Central and Eastern Europe Central and Eastern Europe Overall weak development in most Overall weak development in most markets.markets.Negative impact from Marine Negative impact from Marine
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cancellations in Turkey and Russia.cancellations in Turkey and Russia.
Highlights AsiaHighlights AsiaOctober October –– December 2008, December 2008, at constant ratesat constant rates
Asia Asia Decline in Marine market Decline in Marine market continued.continued.Large installed base boosted Parts & Large installed base boosted Parts & Service.Service.Best performance in Best performance in the Middle East the Middle East and India. and India.
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04/02/2009
© Alfa Laval 12
Orders received by RegionOrders received by RegionJanuary January –– December 2008, December 2008, at constant ratesat constant rates
-2
+11+11Asia 34%Asia 34%
Western Europe 25 %Western Europe 25 %
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-- Orders received and marginsOrders received and margins-- HighlightsHighlights
D l t tD l t t
Report for Q4 and full Report for Q4 and full year 2008year 2008
Mr. Thomas ThuressonMr. Thomas ThuressonCFOCFOAlfa Laval GroupAlfa Laval Group
-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook
04/02/2009
© Alfa Laval 13
HighlightsHighlights
Order intake Order intake 6,1816,181
SEK millionsSEK millions October October –– December 2008December 2008
Net salesNet sales 8,0968,096
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Gross profit marginGross profit margin
50In percent of salesIn percent of sales
30
4040.240.240.940.9
38.938.93535
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20Q405Q405 Q106Q106 Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q108Q108 Q208Q208 Q308Q308 Q408Q408
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HighlightsHighlights
Order intake Order intake
SEK millionsSEK millions OctoberOctober –– December 2008December 2008
6,1816,181Net salesNet salesAdjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginNonNon--recurring chargerecurring chargeProfit before taxProfit before tax
8,0968,0961,7211,721
21.3%21.3%-- 2702701,2111,211
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Comparison distorting items
•• Sale of property in BrazilSale of property in Brazil
SEK millionsSEK millions OctoberOctober –– December 2008December 2008
102102Sale of property in Brazil Sale of property in Brazil
•• Restructuring chargeRestructuring charge
P&L impactP&L impact
102102
-- 270270
-- 168168
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Capacity and work-force reduction program communicated January 12• Measures under implementation to reduce the number of
employees with about 1 000 during the first six months ofemployees with about 1 000 during the first six months of 2009. Some 300 of these in Sweden.
• Annualized savings of approximately SEK 400 million are expected. Implementation estimated to lead to non-recurring costs of about SEK 300 million.
• SEK 270 million were charged to the fourth quarter.
• Full impact from program expected in the fourth quarter of
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• Full impact from program expected in the fourth quarter of 2009, the latest.
Earnings per shareEarnings per share
EarningsEarnings
20082008
2.032.03
20072007
2.422.42
Oct Oct -- DecDec Jan Jan -- DecDec20082008
8.838.83
20072007
7.127.12gg
Earnings, excluding stepEarnings, excluding step--upup 2.152.15 2.542.54 9.269.26 7.647.64
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© Alfa Laval 16
Share repurchasesShare repurchasesDec 31Dec 31
Mandate from AGM 2007Mandate from AGM 20071 452 4001 452 400
0.30.3
5 901 5505 901 5501.41.4
Number of repurchased shares Jan 1 Number of repurchased shares Jan 1 -- March 31*March 31*Percentage of outstanding sharesPercentage of outstanding shares
Mandate from AGM 2008Mandate from AGM 2008Number of repurchased shares April 1 Number of repurchased shares April 1 –– Dec 31Dec 31Percentage of outstanding sharesPercentage of outstanding shares
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766766Total in MSEK spent on shares bought after Dec. 31 2007Total in MSEK spent on shares bought after Dec. 31 2007Shares held are proposed to be cancelled at the AGMShares held are proposed to be cancelled at the AGM
* * Remaining after cancellation.Remaining after cancellation.
HighlightsHighlights
Order intake Order intake N t lN t l
SEK millionsSEK millions October October –– December 2008December 2008
6,1816,1818 0968 096Net salesNet sales
Adjusted EBITAAdjusted EBITAAdjusted EBITAAdjusted EBITA--marginmarginProfit before taxProfit before taxCash flow from operating activitiesCash flow from operating activitiesROCEROCEROEROE
8,0968,0961,7211,721
21.3% 21.3% 1,2111,211
87787753.8%53.8%42.8%42.8%
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© Alfa Laval 17
Cash flow fromCash flow from
CashCash--flow statement flow statement
SEK millionsSEK millionsJan Jan –– DecDec
20082008Jan Jan -- DecDec
20072007
-- operating activitiesoperating activities-- investing activitiesinvesting activities
Financial Financial net paidnet paidDividendsDividendsRepurchase of sharesRepurchase of sharesTotalTotal
4,0624,062-- 1,3331,333
-- 292292-- 983983-- 766766
688688
3,2643,264-- 1,6761,676
-- 244244-- 725725
-- 1,4971,497-- 878878
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Pro Forma FreePro Forma Free--cashcash--flow*flow*
*Incl. operating activities, capital expenditure (excl. product rights), provisions and financial net paid*Incl. operating activities, capital expenditure (excl. product rights), provisions and financial net paid. .
3,0233,023 2,4642,464
Foreign exchangeForeign exchange
SEK millionSEK million
Estimated impact on adjusted EBITA from Fx. fluctuationsEstimated impact on adjusted EBITA from Fx. fluctuations
Q4 08Q4 08 WY 09*WY 09*WY 08WY 08
Translation effectTranslation effectTransaction effectTransaction effect
TotalTotal
*B d EUR/USD 1 30 d EUR/SEK 10 50*B d EUR/USD 1 30 d EUR/SEK 10 50
109109-- 174174-- 6565
250250135 135 385385
00-- 291291-- 291291
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*Based on EUR/USD 1. 30 and EUR/SEK 10.50*Based on EUR/USD 1. 30 and EUR/SEK 10.50
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© Alfa Laval 18
Order backlog as per Dec 31 SEK millionsSEK millions
14000
16000 14,31014,31014,73014,730
4000
6000
8000
10000
12000
14000
2,6682,668
11,642
3,2983,298
11,432
2,3442,344
10,015
12,35912,359
www.alfalaval.com© Alfa Laval Slide 36
For delivery next yearFor delivery next year
0
2000
For delivery later than next yearFor delivery later than next year
2008200820062006 20072007
Order backlog as per Dec 31 Order backlog as per Dec 31 SEK millionsSEK millions
15000 14,31014,31014,73014,730
5000
7500
10000
12500
8,5768,576
5,7345,734
9,1099,109
5,6215,621
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Other SegmentsOther Segments
0
2500
MarineMarine
2008200820072007
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© Alfa Laval 19
-- Orders received and operating margin Orders received and operating margin -- HighlightsHighlights
D l t tD l t t
Report for Q4 and full Report for Q4 and full year 2008year 2008
Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
-- Development per segmentDevelopment per segment-- Geographical developmentGeographical development-- Financials Financials -- OutlookOutlook
Outlook for the first quarterOutlook for the first quarter
“We expect demand in the first“We expect demand in the firstWe expect demand in the first We expect demand in the first quarter to be somewhat lower quarter to be somewhat lower than the fourth quarter 2008.”than the fourth quarter 2008.”
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