JP Morgan Capital Goods Conference London – June 7, 2006 · Mr. Lars Renström President and CEO...
Transcript of JP Morgan Capital Goods Conference London – June 7, 2006 · Mr. Lars Renström President and CEO...
JP Morgan Capital Goods ConferenceJP Morgan Capital Goods ConferenceLondon London –– June 7, 2006June 7, 2006
Mr. Lars Mr. Lars RenstrRenströömmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
-- An introductionAn introduction-- PrioritiesPriorities-- Financial targets and outlookFinancial targets and outlook
Strong market Strong market positions and global positions and global presencepresence
© Alfa Laval Slide 3 www.alfalaval.com
Alfa Laval in a nutshell
• Sales (2005): SEK 16,500 million
• 20 production units• 70 service centres• Sales companies in 55 countries • Sales representation in further 45 countries
• Orders received (2005): SEK 18,500 million• Employees: 10,000
© Alfa Laval Slide 4 www.alfalaval.com
Key TechnologiesKey Technologies
Separation
Fluid handling
Heat transfer
© Alfa Laval Slide 5 www.alfalaval.com
No 1 globally in all three product groupsNo 1 globally in all three product groups
Heat transferHeat transfer48%48%
SeparationSeparation31%31%
Fluid handlingFluid handling14%14%
Heat transfer Separation Fluidhandling
Market share> 30%
Market share25–30%
Market share10%
© Alfa Laval Slide 6 www.alfalaval.com
Comfort & RefrigerationComfort & Refrigeration
MarineMarine
BreweryBreweryPharmacy / BiotechPharmacy / Biotech
Examples of endExamples of end--usersusers
Process IndustryProcess Industry
© Alfa Laval Slide 7 www.alfalaval.com
FoodFood EnvironmentEnvironment Oil & gasOil & gas
Examples of endExamples of end--usersusers
Bio fuelsBio fuels
© Alfa Laval Slide 8 www.alfalaval.com
Orders received frOrders received from energy and energy related industryom energy and energy related industry
Energy and energy related industryEnergy and energy related industry
approx. 40%
© Alfa Laval Slide 9 www.alfalaval.com
•• Offshore platformsOffshore platforms•• Onshore LNG gas receiving terminalOnshore LNG gas receiving terminal•• LNG transport carriersLNG transport carriers
Liquid Natural Gas (LNG)Liquid Natural Gas (LNG)
-- An overviewAn overview-- PrioritiesPriorities-- Financial targets and outlookFinancial targets and outlook
Mr. Lars Mr. Lars RenstrRenströömmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
© Alfa Laval Slide 11 www.alfalaval.com
V
Priorities within existing strategyPriorities within existing strategy
Reinforced focus on profitabilityPresence in China, India and Russia Time to marketAftermarketAcquisitions
© Alfa Laval Slide 12 www.alfalaval.com
Focus on profitability
Compensation forCompensation for
increased increased
rawraw--material pricesmaterial prices
Price and profitabilityPrice and profitability
per product and customerper product and customer 10.0
11.0
12.0
13.0
2005
Margin development %
Q106
”Pricing power”
© Alfa Laval Slide 13 www.alfalaval.com
Geographical coverage Geographical coverage –– local presencelocal presence
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
© Alfa Laval Slide 14 www.alfalaval.com
Order intake 2005Order intake 2005
+25%+43%
© Alfa Laval Slide 15 www.alfalaval.com
Increased local presenceIncreased local presence
China
India
Russia
© Alfa Laval Slide 16 www.alfalaval.com
Direct labor hours in Asia
42%
© Alfa Laval Slide 17 www.alfalaval.com
New products New products -- the base for profitable growththe base for profitable growth
Research and Development approx. 3 percent of the turnoverResearch and Development approx. 3 percent of the turnover
One of the largest One of the largest gasketedgasketedplate heat exchangers in the plate heat exchangers in the worldworld
Main application:Main application:central coolingcentral cooling
T50 – an efficient giant
© Alfa Laval Slide 18 www.alfalaval.com
Increased focus on the aftermarketIncreased focus on the aftermarket
Order Order intakeintake 2005 2005
• Less sensitive• Increased turnover per customer• Closer relations with our customers
© Alfa Laval Slide 19 www.alfalaval.com
Acquired growthTwo wellTwo well--timed acquisitionstimed acquisitions
PackinoxPackinoxWorld leader in large welded plate heat World leader in large welded plate heat exchangers for the hydrocarbon industryexchangers for the hydrocarbon industry
CustomerCustomer Refineries and Refineries and segments:segments: PetrochemicalsPetrochemicalsAnnual sales:Annual sales: MSEK 500 MSEK 500 Profit margin:Profit margin: Above GroupAbove Group--averageaverage
TranterTranterVery strong brandVery strong brand--name among plate name among plate heat exchangerheat exchanger
CustomerCustomer HVAC, Process HVAC, Process segments:segments: Industry, MarineIndustry, MarineAnnual sales:Annual sales: MSEK 900 MSEK 900 Profit margin:Profit margin: Above GroupAbove Group--averageaverage
Add 9% profitable
growth
-- An overviewAn overview-- PrioritiesPriorities-- Financial targets and outlookFinancial targets and outlook
Mr. Lars Mr. Lars RenstrRenströömmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
© Alfa Laval Slide 21 www.alfalaval.com
V
Financial TargetsFinancial Targets
Growth > 5%
EBITA-margin 10 - 13%
ROCE > 20%
© Alfa Laval Slide 22 www.alfalaval.com
-10
0
10
20
30
40
50
60
2 500
5 000
7 500
10 000
12 500
15 000
17 500
20 000% Q on Q % Q on Q vsvs last year excl FXlast year excl FX
Q20
3Q
203
Q30
3Q
303
Q40
3Q
403
Q10
4Q
104
Q20
4Q
204
Q30
4Q
304
Q40
4Q
404
Q10
5Q
105
Orders receivedSEK million R 12SEK million R 12
Q20
5Q
205
= rolling twelve months value
= % development compared with the same quarter the year before
Q30
5Q
305
Q40
5Q
405
Q10
6Q
106
© Alfa Laval Slide 23 www.alfalaval.com
0
100
200
300
400
500
600
700
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
SEK million and in percent of salesSEK million and in percent of sales
* Adjusted EBITA – ”Earnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items.”
Adjusted EBITA / margin *Adjusted EBITA / margin *
Q203Q203 Q303Q303 Q403Q403 Q104Q104 Q204Q204 Q304Q304 Q404Q404 Q105Q105 Q205Q205 Q305Q305 Q405Q405 Q106Q106Q103Q103
© Alfa Laval Slide 24 www.alfalaval.com
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.””