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
www.alfalaval.com© Alfa Laval Slide 4
•• 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
-- Development per segmentDevelopment per segment
-- Geographical developmentGeographical development
-- Financials Financials
-- 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
www.alfalaval.com© Alfa Laval Slide 7
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*
www.alfalaval.com© Alfa Laval Slide 8
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
Report for Q4 2012Report for Q4 2012-- Key figures Key figures
-- Orders received and marginsOrders received and margins
-- Highlights Highlights
-- Development per segmentDevelopment per segment
-- Geographical developmentGeographical development
-- Financials Financials
-- 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
www.alfalaval.com© Alfa Laval Slide 12
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
Report for Q4 2012Report for Q4 2012
-- Key figures Key figures
-- Orders received and margins Orders received and margins
-- Development per segmentDevelopment per segment
-- Geographical developmentGeographical development
-- Financials Financials
-- 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
Equipment divisionEquipment division
�� 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%
++ --
-- ++
== --
YearYear--onon--year comparisonyear comparison
Sequential comparisonSequential comparison
*Share of Group total*Share of Group total
Process Technology divisionProcess Technology division
�� 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 ++ --
++ ++
Highlights and sequential commentsHighlights and sequential comments
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.
Parts & ServiceParts & Service
14%14%
== ++
++ ++
++ --
YearYear--onon--year comparisonyear comparison
Sequential comparisonSequential comparison
Process IndustryProcess Industry
16%16%
*Share of Group total*Share of Group total
Marine & Diesel divisionMarine & Diesel division
�� 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. ++ --
-- --
Highlights and sequential commentsHighlights and sequential comments
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.
++ ++
++ --
YearYear--onon--year comparisonyear comparison
Sequential comparisonSequential comparison
Parts & ServiceParts & Service
9%9%
*Share of Group total*Share of Group total
Marine & Diesel DivisionMarine & Diesel Division
DriverShip building & Offshore
Marine environment Diesel power Parts & Service
Distribution of orders YTDDistribution of orders YTD
www.alfalaval.com© Alfa Laval Slide 19
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
Process IndustryProcess Industry
==
++
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
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 * New customer segment, no corresponding * New customer segment, no corresponding period last year exists.period last year exists.
**
Report for Q4 2012Report for Q4 2012-- Key figures Key figures
-- Orders received and marginsOrders received and margins
-- Highlights Highlights
-- Development per segmentDevelopment per segment
-- Geographical developmentGeographical development
-- Financials Financials
-- 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
www.alfalaval.com© Alfa Laval
Central Central and and Eastern Eastern Europe 6%Europe 6%
Asia Asia 32%32%
Western Europe Western Europe 24%24%
Nordic Nordic 10%10%
YearYear--onon--year comparisonyear comparison
+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
www.alfalaval.com© Alfa Laval
YearYear--onon--year comparisonyear comparison
Sequential comparisonSequential comparison
Highlights EuropeHighlights Europe
Oct. Oct. –– Dec. 2012, at constant rates, sequential commentsDec. 2012, at constant rates, sequential comments
-34 -37
+6 +12
+25 +12
www.alfalaval.com© Alfa Laval
YearYear--onon--year comparisonyear comparison
Sequential comparisonSequential comparison
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
Oct. Oct. –– Dec. 2012, at constant rates, sequential commentsDec. 2012, at constant rates, sequential comments
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.
www.alfalaval.com© Alfa Laval
YearYear--onon--year comparisonyear comparison
Sequential comparisonSequential comparison
+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
www.alfalaval.com© Alfa Laval Slide 26
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
www.alfalaval.com© Alfa Laval
Central Central and and Eastern Eastern Europe 9%Europe 9%
Asia Asia 32%32%
Western Europe Western Europe 22%22%
Nordic Nordic 9%9%
YearYear--onon--year comparisonyear comparison
+9
Report for Q4 2012Report for Q4 2012
Mr. Thomas Mr. Thomas ThuressonThuressonCFOCFOAlfa 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
HighlightsHighlights
Order intake Order intake
Net salesNet sales
SEK millionsSEK millions Oct. Oct. –– Dec. 2012Dec. 2012
7,2527,252
8,1198,119
www.alfalaval.com© Alfa Laval Slide 29
Gross profit marginGross profit margin
5050
In percent of salesIn percent of sales
37.037.037.837.8
39.339.3
38.738.7
www.alfalaval.com© Alfa Laval
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%
www.alfalaval.com© Alfa Laval Slide 31
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
www.alfalaval.com© Alfa Laval Slide 32
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
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
FY 13*FY 13*
-- 120120
-- 2020
-- 140140
FY 12FY 12
-- 11
--138138
-- 139139
Q4 12Q4 12
-- 3232
-- 3131
-- 6363
www.alfalaval.com© Alfa Laval Slide 33
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
www.alfalaval.com© Alfa Laval Slide 34
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
SEK millionSEK million
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
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
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
www.alfalaval.com© Alfa Laval Slide 38
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.”
www.alfalaval.com© Alfa Laval Slide 39
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
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