reportreport for q3 2011 for q3 2011 - alfa laval · 2016-10-25 · q308 q408 q109 q209 q309q309...

ReportReport for Q3 2011for Q3 2011

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

-- Orders received and marginsOrders received and margins

-- HighlightsHighlights

-- Development per segmentDevelopment per segment

-- Geographical developmentGeographical development

-- Financials Financials

-- OutlookOutlook

Key figuresKey figures

�� Orders received rose 31% to SEK 8,018 million.Orders received rose 31% to SEK 8,018 million.

�� Net sales increased 30% to SEK 7,571 million.Net sales increased 30% to SEK 7,571 million.

�� Adjusted EBITA up 25% at SEK 1,431 million. Adjusted EBITA up 25% at SEK 1,431 million.

�� Adjusted EBITA margin 18.9% Adjusted EBITA margin 18.9% vsvs 19.6%19.6%

-- Negative currency effect SEK 114 million.Negative currency effect SEK 114 million.

July July –– September 2011September 2011

www.alfalaval.com© Alfa Laval Slide 3


�� Orders received rose 25% to SEK 21,897 million.Orders received rose 25% to SEK 21,897 million.

�� Net sales increased 17% to SEK 20,503 million.Net sales increased 17% to SEK 20,503 million.

�� Adjusted EBITA up 17% at SEK 3,900 million. Adjusted EBITA up 17% at SEK 3,900 million.

�� Adjusted EBITA margin 19.0 % Adjusted EBITA margin 19.0 % vsvs 19.1%19.1%


January January –– September 2011September 2011

16 000

20 000

24 000

28 000

32 000

4 000

5 000

6 000

7 000

8 000

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12


0

4 000

8 000

12 000

16 000

0

1 000

2 000

3 000

4 000

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q109

Q109

Q410

Q410

Q111

Q111

Q311

Q311

Q307

Q307

Q407

Q407

Q108

Q108

Q208

Q208

+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%

Q308

Q308

Q408

Q408

--15%

15%

--32%

32%

Q209

Q209

--37%

37%

Q309

Q309

--30%

30%

Q409

Q409

--9%

9%

--6%

6%

Q110

Q110

Q210

Q210

+25%

+25%

Q310

Q310

+23%

+23%

+23%

+23%

+ 3

2%

+ 3

2%

Q211

Q211

+38%

+38%

+ 3

7%

+ 3

7%

Order analysisOrder analysis

2010 2010 (SEK millions)(SEK millions)

Structural change, %Structural change, %

Currency effects,%Currency effects,%

Organic development, %Organic development, %

Total, %Total, %

6,1346,134

July July –– Sep 2011Sep 2011

+ + 16.1 16.1

-- 6.66.6

+ 21.2+ 21.2

+ 30.7+ 30.7


Total, %Total, %

2011 2011 (SEK million)(SEK million) 8,0188,018

+ 30.7+ 30.7

15,0

18,0

21,0

24,0

1 125

1 350

1 575

1 800

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

Adjusted EBITA / margin *Adjusted EBITA / margin *


0,0

3,0

6,0

9,0

12,0

0

225

450

675

900

* 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.”

Q211Q211Q109Q109 Q409Q409 Q110Q110 Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q311Q311Q308Q308 Q408Q408 Q209Q209 Q309Q309

InterimInterim ReportReport Q3 2011Q3 2011







-- OutlookOutlook

Highlights during the quarterHighlights during the quarter

�� Order from petrochemical plant in Singapore. Order from petrochemical plant in Singapore. Alfa Laval will supply Alfa Laval will supply PackinoxPackinox heat exchangers to be used in a catalytic heat exchangers to be used in a catalytic

processing section. The order is worth approximately SEK 110 million and processing section. The order is worth approximately SEK 110 million and

delivery is scheduled for 2012.delivery is scheduled for 2012.

Total large ordersTotal large orders SEK 525 SEK 525 MlnMln (270 (270 MlnMln))



�� Order from petrochemical plant in Singapore.Order from petrochemical plant in Singapore.�� Heat exchanger order from South Korean contractor.Heat exchanger order from South Korean contractor.

Order for heat exchangers to be installed in the UAE’s first nuclear power Order for heat exchangers to be installed in the UAE’s first nuclear power

plant .The order is worth approximately SEK 60 million and deliveries plant .The order is worth approximately SEK 60 million and deliveries

scheduled to start in 2013 and be completed in 2018. scheduled to start in 2013 and be completed in 2018.




�� Order from petrochemical plant in Singapore.Order from petrochemical plant in Singapore.�� Heat exchanger order from South Korean contractor.Heat exchanger order from South Korean contractor.�� Energy efficiency order in China.Energy efficiency order in China.

Order to supply compact heat exchangers to a value of approximately Order to supply compact heat exchangers to a value of approximately

SEK 50 million, to a petrochemical plant in China. Delivery is scheduled SEK 50 million, to a petrochemical plant in China. Delivery is scheduled



SEK 50 million, to a petrochemical plant in China. Delivery is scheduled SEK 50 million, to a petrochemical plant in China. Delivery is scheduled for 2012.for 2012.


�� Order from petrochemical plant in Singapore.Order from petrochemical plant in Singapore.�� Heat exchanger order from South Korean contractor.Heat exchanger order from South Korean contractor.�� Energy efficiency order in China.Energy efficiency order in China.�� Natural gas order in the Middle East.Natural gas order in the Middle East.

Order for heat exchangers from a Japanese engineering company for a Order for heat exchangers from a Japanese engineering company for a



Order for heat exchangers from a Japanese engineering company for a Order for heat exchangers from a Japanese engineering company for a

new natural gas project in Qatar. The contract is worth approximately SEK new natural gas project in Qatar. The contract is worth approximately SEK

90 million and delivery is scheduled for 2012.90 million and delivery is scheduled for 2012.


�� Order from petrochemical plant in Singapore.Order from petrochemical plant in Singapore.�� Heat exchanger order from South Korean contractor.Heat exchanger order from South Korean contractor.�� Energy efficiency order in China.Energy efficiency order in China.�� Natural gas order in the Middle East.Natural gas order in the Middle East.�� Processing line for baby food production in India. Processing line for baby food production in India.



�� Processing line for baby food production in India. Processing line for baby food production in India. The order is for a variety of products for mixing, heating and cooling The order is for a variety of products for mixing, heating and cooling

operations, including heat exchangers and flow equipment. The value is operations, including heat exchangers and flow equipment. The value is

approximately SEK 100 million and delivery is scheduled for 2013.approximately SEK 100 million and delivery is scheduled for 2013.


�� Order from petrochemical plant in Singapore.Order from petrochemical plant in Singapore.�� Heat exchanger order from South Korean contractor.Heat exchanger order from South Korean contractor.�� Energy efficiency order in China.Energy efficiency order in China.�� Natural gas order in the Middle East.Natural gas order in the Middle East.�� Processing line for baby food production in India.Processing line for baby food production in India.



�� Processing line for baby food production in India.Processing line for baby food production in India.�� EnergyEnergy--efficiency order in Kazakhstan. efficiency order in Kazakhstan.

The order is worth approximately SEK 55 million and includes Alfa Laval The order is worth approximately SEK 55 million and includes Alfa Laval

PackinoxPackinox heat exchangers to a refinery. Delivery is scheduled for 2012.heat exchangers to a refinery. Delivery is scheduled for 2012.


�� Order from petrochemical plant in Singapore.Order from petrochemical plant in Singapore.�� Heat exchanger order from South Korean contractor.Heat exchanger order from South Korean contractor.�� Energy efficiency order in China.Energy efficiency order in China.�� Natural gas order in the Middle East.Natural gas order in the Middle East.�� Processing line for baby food production in India.Processing line for baby food production in India.



�� Processing line for baby food production in India.Processing line for baby food production in India.�� EnergyEnergy--efficiency order in Kazakhstan.efficiency order in Kazakhstan.�� Industrial wastewater treatment order in Canada. Industrial wastewater treatment order in Canada.

The order is for newly developed equipment for the cleaning of The order is for newly developed equipment for the cleaning of wastewater. The value totals approximately SEK 60 million and delivery is wastewater. The value totals approximately SEK 60 million and delivery is

scheduled for 2012.scheduled for 2012.

InterimInterim reportreport Q3 2011Q3 2011







-- OutlookOutlook

Orders received by customer segmentOrders received by customer segmentProcess Technology Division Process Technology Division July July –– September 2011, September 2011, at constant ratesat constant rates

��Oil & Gas lifted by continued Oil & Gas lifted by continued capacitycapacity--related investments related investments

��Continued high activity for Continued high activity for Process IndustryProcess Industry

��Very strong development in Very strong development in Food TechnologyFood Technology

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

++++

++++

++++

www.alfalaval.com

Slide 16

© Alfa Laval

FoodFood

Parts & ServiceParts & Service

++++

++++

Orders received by customer segmentOrders received by customer segmentEquipment Division, Equipment Division, July July –– September 2011, September 2011, at constant ratesat constant rates

Marine & DieselMarine & Diesel

====

++++

Industrial EquipmentIndustrial Equipment


�� Sanitary and OEM affected Sanitary and OEM affected by the macroeconomic by the macroeconomic uncertainty uncertainty

�� Continued strong development for Continued strong development for Marine & DieselMarine & Diesel Parts & ServiceParts & Service====

SanitarySanitary

OEMOEM

−−−−

−−−−−−−−

Orders received by customer segmentOrders received by customer segment

Industrial EquipmentIndustrial Equipment

Marine & DieselMarine & Diesel

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

January January –– September 2011, September 2011, at constant ratesat constant rates

++++ ++++

++++++++

++++


SanitarySanitary

OEMOEM

FoodFood

Parts & ServiceParts & Service++++

++++

++++

++++








-- OutlookOutlook

Orders received by RegionOrders received by RegionJuly July –– September 2011, September 2011, at constant ratesat constant rates

+32+32+9+9

+36+36

+64+64


Cen

trC

en

tr. & E

ast

. & E

ast 7

7 %%

+30+30

North America North America

� Oil & Gas lifted by continued

capacity investments

� Base business had a good

Highlights AmericasHighlights AmericasJuly July –– September 2011, September 2011, at constant ratesat constant rates

+9+9


� Base business had a good

development as did Parts & Service

Latin Latin America America

�� Growth reported for both divisionsGrowth reported for both divisions

�� Particularly strong development in Particularly strong development in

Process Industry, Food and Industrial Process Industry, Food and Industrial

EquipmentEquipment

+30+30

Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. Nordic

�� Continued growth in the base Continued growth in the base

businessbusiness

�� Industrial Equipment , Marine Industrial Equipment , Marine

July July –– September 2011, September 2011, at constant ratesat constant rates

+32+32

+36+36


�� Industrial Equipment , Marine Industrial Equipment , Marine

& Diesel and Process Industry & Diesel and Process Industry

performed the bestperformed the best

Central Central and Eastern Europe and Eastern Europe

�� Process Industry, Marine & Diesel and Process Industry, Marine & Diesel and

Food did particularly well Food did particularly well

�� Russia was the strongest performing Russia was the strongest performing

countrycountry

Highlights AsiaHighlights Asia

Asia Asia

�� Process Technology boosted by Process Technology boosted by

July July –– September 2011, September 2011, at constant ratesat constant rates


�� Process Technology boosted by Process Technology boosted by

good project activitygood project activity

�� Marine showed continued growthMarine showed continued growth

�� Geographically the increase was Geographically the increase was

broadbroad--basedbased

Orders received by RegionOrders received by Region

Asia Asia 35 35 %%

Jan Jan –– September 2011, September 2011, at constant ratesat constant rates

+41+41+23+23

+24+24

+54+54


Asia Asia 35 35 %%

+43+43


Mr. Thomas ThuressonMr. Thomas ThuressonCFOCFOAlfa Laval GroupAlfa Laval Group






-- OutlookOutlook

HighlightsHighlights

Order intake Order intake

Net salesNet sales

8,0188,018

7,5717,571

SEK millionsSEK millions JulyJuly –– September 2011September 2011


Gross profit marginGross profit margin

40

50In percent of salesIn percent of sales

38.338.341.741.7

38.038.0

40.640.6

www.alfalaval.com© Alfa Laval

20

30

38.038.0

Q109Q109 Q309Q309 Q409Q409 Q110Q110 Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q211Q211 Q311Q311Q308Q308 Q408Q408 Q209Q209


Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax

SEK millionsSEK millions JulyJuly –– September 2011September 2011

8,0188,018

7,571 7,571 1,4311,431

18.9%18.9%

1,1131,113


Earnings per shareEarnings per share

EarningsEarnings

Earnings, excluding Earnings, excluding stepstep--upup

20112011

5.475.47

5.995.99

20102010

5.205.20

5.705.70

Jan Jan –– Sep. Sep. 20112011

1.841.84

2.052.05

20102010

1.781.78

1.951.95

July July –– Sep.Sep.



Order intake Order intake

Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin


SEK millionsSEK millions July July –– Sep. 2011Sep. 2011

8,0188,018

7,5717,571

1,4311,431

18.9% 18.9%

1,113 1,113



Cash flow from operating activitiesCash flow from operating activities

ROCEROCE

ROEROE

1,113 1,113

1,0311,031

31.8%31.8%

23.5%23.5%

Cash flow fromCash flow from

-- operating activitiesoperating activities

-- investing activitiesinvesting activities

Financial Financial net paidnet paid

CashCash--flow statement flow statement

SEK millionsSEK millions

Jan Jan –– Sep.Sep.

20112011

Jan Jan –– Sep.Sep.

20102010

+2138+2138

-- 5,2365,236

+ 141+ 141

+3,017+3,017

-- 646646

-- 1010


TotalTotal

Pro Forma Pro Forma Free cashFree cash--flowflow****Incl. operating activities, capital expenditure and financial net paid.Incl. operating activities, capital expenditure and financial net paid.

1,9961,996 2,7802,780

--2,9572,957 2,3612,361

3Q Pro 3Q Pro Forma Forma Free cashFree cash--flow*flow* 783783 1,0521,052

Proposal to delist Alfa Laval India Ltd.Proposal to delist Alfa Laval India Ltd.

••On Sept. 19On Sept. 19thth, Alfa Laval announced the aim to achieve full ownership of its , Alfa Laval announced the aim to achieve full ownership of its

subsidiary Alfa Laval India Ltd and seek delisting.subsidiary Alfa Laval India Ltd and seek delisting.

•• To be able to complete the acquisition, two thirds of all minority shareholders, To be able to complete the acquisition, two thirds of all minority shareholders,

participating in a postal ballot, must back the proposal for delisting. Furthermore, participating in a postal ballot, must back the proposal for delisting. Furthermore,

minority shareholders together holding at least 50 percent of the public float, must minority shareholders together holding at least 50 percent of the public float, must

be willing to sell at the final price that Alfa Laval accepts, based on a reverse book be willing to sell at the final price that Alfa Laval accepts, based on a reverse book

building process. building process.

www.alfalaval.com

building process. building process.

••As part of the process a floor price has been established of INR 2 045 per share, As part of the process a floor price has been established of INR 2 045 per share,

equivalent to a total cost for Alfa Laval AB of SEK 583 million. The actual cost is equivalent to a total cost for Alfa Laval AB of SEK 583 million. The actual cost is

dependent on the fixing of the final price.dependent on the fixing of the final price.

••Once Alfa Laval reaches an Once Alfa Laval reaches an ownership of at least ownership of at least 94.4 percent, the company can 94.4 percent, the company can

go ahead and apply for delisting. go ahead and apply for delisting.

Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effect

Transaction effectTransaction effect

TotalTotal

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

WY 11WY 11

-- 200200

--210210

--410410

WY WY 12*12*

--

--180180

--180180

9M 119M 11

--267267

--121121

--388388

Q3 11Q3 11

--6565

--4949

--114114


TotalTotal

*Based on EUR/USD 1.34 and EUR/SEK 9.20*Based on EUR/USD 1.34 and EUR/SEK 9.20

--410410 --180180--388388--114114

Projected FXProjected FX--effect for 2011 as communicated with the Q2 report effect for 2011 as communicated with the Q2 report SEK SEK --455 million 455 million

Order backlog as per Sep. 30

SEK millionsSEK millions

10000

12000

14000

16000

13,19213,192

7,7057,705 8,6508,6505,7515,751

11,68911,689

15,06815,068


For delivery For delivery in 2011in 2011

0

2000

4000

6000

8000

For delivery For delivery later than 2011later than 2011

5,9385,9385,4875,487 6,4186,418

20092009 20102010 20112011

SalesSalesFull year Full year 20112011

SEK (SEK (blnbln))

Full year 2010Full year 2010 24.724.7

FXFX--translation translation -- 1.51.5

SubtotalSubtotal 23.223.2

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

Price ?Price ?

www.alfalaval.com

Price ?Price ?

Acquisitions (Acquisitions (inclincl OlmiOlmi) ) ++ 0.70.7

Aalborg (8 months as 2010) + 2.0Aalborg (8 months as 2010) + 2.0

Full year 2011Full year 2011



-- Orders received and operating margin Orders received and operating margin





-- OutlookOutlook

Outlook for the fourth quarterOutlook for the fourth quarter

“We expect that demand during “We expect that demand during

the fourth quarter 2011 will be in the fourth quarter 2011 will be in


the fourth quarter 2011 will be in the fourth quarter 2011 will be in

line with or somewhat lower than line with or somewhat lower than

in the third quarter.” in the third quarter.”

reportreport for q3 2011 for q3 2011 - alfa laval · 2016-10-25 · q308 q408 q109 q209 q309q309...

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