Financial update Mr. Thomas Thuresson CFO Alfa Laval Group
Financial update The menu for today Repurchase of shares Dividends Group funding Amortisation of step-up Headcount development Currency effects Order backlog Gross profit margin Cash flow
Repurchase of shares Status as per November 14, Mandate to repurchase 5 percent of the issued shares Number of repurchased shares Percentage of outstanding shares Decrease of equity capital* New mandate 4,285,5 1. Total held 5,737,45 1.3 456 *In parent company and in the Group (SEK million) Unrestricted equity in the parent company as per September 3, 28: SEK 4,287 million
Alfa Laval India Ltd. - public offer for purchase of minority shares launched Number of shares, millions Percentage of outstanding shares Value of targeted shares in USD m* Targeted 2.4 13.26 49.7 Currently held 13.9 76.73 *Based on an offer price of INR 95 / share and a rate of USD / INR 46:- Status of the offer: - Offer documents filed with Indian authorities - Anticipated offer period December 18 January 6 - Expected settlement date January 21
EPS and dividends SEK 9 8 7 6 5 4 3 % of Adj EPS 8 6 4 2 1 2 23 24 25 26 27 Adjusted EPS, (excl( step up) EPS Dividend Dividend as % of adjusted EPS
Group funding Summary of credit facilities as per September 3, 28 Committed SEKm Utilised Maturity SEKm Year Senior Facility - Revolver USD 348 million 4,981 1,775 212 - Revolver EUR 168 million - Bullet EUR 1 million US Private Placement USD 11 million 748 748 216 SHB bi-lateral loan EUR 25 244 244 214 Sub total: 5,973 2,767 Local facilities - 559 Total: 5,973 3,326 Cash and deposits - + 1,156 In addition, uncommitted facilities are available to an amount of approx. SEK 1.2 Bn
Step-up values up to 211 Closing balance and depreciations according to plan, SEK million Closing balance 2 18 16 14 12 1 8 6 4 2 Depreciations 4 35 3 25 2 15 1 5 25 26 27 28 29 21 211 LBO-related Acquisitions Depreciations acc to plan
Employees by category 14 12 1 8 6 4 9,429 3,25 856 1,7 131 37 11,19 931 3,294 957 1,35 384 12,99 1,324 3,535 944 1,23 418 +1% +1% --4% 2 3,797 4,58 4,855 +28% Jan 1, 26 Sep 3, 27 Sep 3, 28 Operations Management & Admin. R&D Central Sales & Marketing Local Sales & Service Acquisitions/ Divestments
Employees by region 12 12,99 11,19 1 9,429 68 724 +32% 8 6 55 2,312 75 2,587 696 2,871 718 +24% + 2% 4 5,357 5,8 6,2 +12% 2 Jan 1, 26 Sep 3, 27 Sep 3, 28 W Europe North America Asia & Middle East C & E Europe Other Regions Acquisitions/ Divestments
Employees Productivity development KSEK 25 2,181 2,229 2 1,958 15 1,486 1,573 1,732 1 5 174 23 178 24 187 25 298 437 26 27 55 LTM Q3/8 Sales/employee end of year EBITA/employee end of year
Foreign exchange Estimated impact on adjusted EBITA from Fx.. fluctuations SEK million 9 m 8 WY 8 WY 9 WY 1 Translation effect Transaction effect Total - 19-117 - 226-9 - 18-28 + 55 + 4 + 95 - + 35 + 35 Rates applied for open exposures EUR / SEK 9:8 EUR / USD 1:3 EUR / JPY 13 USD / JPY 1
Order backlog development SEK million 18 16 14 12 1 8 6 4 2 21 22 23 24 25 26 27 28 % of LTM-sales 8 7 6 5 4 3 2 1 Order backlog % of LTM (last twelve months) ) sales
Order backlog as per Sept 3 For delivery after December 31 SEK millions 1 9 9,58 9,36 8 7 6,665 4,99 4,576 6 5 2,327 4 3,553 3 1,733 2 1 1,82 25 4,338 4,959 26 27 4,73 28 Marine & Diesel Other Segments
Order backlog as per Sept 3 SEK millions 18 16 14 15,314 15,873 12 1 8 6 7,111 3,558 11,839 5,174 6,256 6,567 8,33 8,766 Y-o-Y +.4 Bn! 4 2 3,553 25 6,665 9,58 26 27 9,36 28 For delivery during rest of current year For delivery next year or later For delivery next year
Sales 28 and 29 BnSEK LTM Q38 27. Change order backlog Q4, y-o-y +.3 Fx. Translation +.1 Acquisitions +.1 Demand Q48 =/- Full year 28 > 27.2 V
Sales 28 and 29 BnSEK Full year 28 > 27.2 Change order backlog y-o-y +.4 Fx. Translation +.4 Acquisitions +.3 Subtotal: 28.3 Price -? Demand? Full year 29: V
Gross profit margin 5 In percent of sales 4 3 35.3 37.2 39.1 4.6 2 Q35 Q45 Q16 Q26 Q36 Q46 Q17 Q27 Q37 Q47 Q18 Q28 Q38
Long term stability Gross Margin Development 1991-21 5% 4% Gross Margin 3% 2% 1% % 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 Source: Statutory accounts 1998-21, management accounts for current businesses prior to 1998
Gross profit margin Evolution over some 15 years 36-39 % 35-4 % Restructuring Procurement 37 43 % Demand - structural growth - business cycle - emerging markets Pricing - developed skills - metals prices Product mix - size - application Resilience going forward? Cost base Pricing skills Scope of supply 199 s 2-25 25 26-28
SEK million Working capital Development over five years Percent of sales 3 2 32, 2 4 24, 1 6 16, 8 8, Q33 Q44 Q14 Q24 Q34 Q44 Q15 Q25 Q35 Q45 Q16 Q26 Q36 Q46 Q17 Q27 Q37 Q47 Q18 Q28 Q38,
Working capital Development of main components Percent of sales 24 2 AR in % 16 12 8 Inv-Adv in % W / C in % 4 Q33 Q43 Q14 Q24 Q34 Q44 Q15 Q25 Q35 Q45 Q16 Q26 Q36 Q46 Q17 Q27 Q27 Q37 Q47 Q18 Q18 Q28 Q38
Capital expenditure SEK million 9 8 7 6 5 4 3 2 1 Percent of sales 4,5 4 3,5 3 2,5 2 1,5 1,5 23 24 25 26 27 28 29 Cap ex Depr acc to plan (excl( step-up up) Percent of sales
Cash-flow statement SEK million Jan Sep 28 Jan Sep 27 Jan Sep 26 Cash flows from - operating activities - investing activities Financial net paid Dividends Total 3,185-1,147-192 - 974 185 2,14-947 - 166-716 185 1,624-1,411-52 - 587-426 Pro Forma Free-cash cash-flow* 2,539 1,67 1,38 *Incl. operating activities, capital expenditure (excl. product rights), provisions and financial net paid. We believe we have the opportunity to generate a free cash-flow of approximately SEK 2.5 billion in 29!