Marine Division

Peter Leifland

Alfa Laval Group

© Alfa LavalSlide 2

www.alfalaval.com

Alfa Laval on board- Product, system & application leadership, 17 product groups

Inert gas systems

Exhaust gas cleaning

Filtration

Ballast water treatment

Tank cleaning

Oily waste treatment

Oil treatment

Crankcase gas cleaning

Cooling and heating

Thermal fluid heatingSteam and heat generation

Waste heat recovery

Desalination

Scrubber water cleaning

Gas combustion

Fuel conditioning

Cargo pumping

Container ship Bulk carrier

Tanker Gas tanker

www.alfalaval.com

Marine Division DNA…- Based on LTM September 30, 2016

Sales by product group Sales by industrySplit by type of sales

Capital sales

Service

Pumping systems

Boilers

Separation &

heat transfer

Ballast

Others

Marine

Offshore

Diesel

Orders received:

SEK Bn 10.5Sales:

SEK Bn 12.9

www.alfalaval.comSource: Clarkson Research Services Limited

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

Long-term trade trends & scenarios- World seaborne trade, in million tonnes

--- Base case: 2-3 % growth p.a.

--- Low case: 1-2 % growth p.a.

--- High case: 3-4 % growth p.a.

www.alfalaval.com

Yard contracting and deliveries- 1st November 2016, including all ships above 2,000 Dwt/Gt

Source: Clarkson Research Services Limited

3430

1 000

2 000

3 000

4 000

5 000

6 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nu

mb

er

of

ve

sse

ls

FC No of ships contracted

FC No of ships delivered

Actual Contracted YTD

www.alfalaval.com

Shipmix- 2014 vs. estimated 2017, number of vessels

2014 = 2,190 vessels

Bulk carriers

766

Other*

686Alfa Laval

“sweet spot”

721

E 2017 = 790 vessels

Bulk

75

Other*

252Alfa Laval

“sweet spot”

432

Source: Clarkson, 1st October 2016

*) Other vessels: General cargo & MPP, Reefer, Ro-ro & vehicle carriers,

Offshore and miscellaneous

Alfa Laval “sweet spot and order value

opportunity in M€:

Product & chemical tankers 1.5 – 6.0

Cruise 1.0 – 5.0

Crude tankers 0.9 – 2.2

Gas carriers 0.5 – 3.0

Container vessels 0.5 – 2.0

www.alfalaval.com

World seaborne oil products trade

0

500

1,000

1,500

2,000

2,500

3,000

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Cargo Volume(Left Axis) Tonne-Miles (Right Axis)

Source: Clarkson Research Services Limited

Bill

ion T

onnes

Bill

ion T

onne-M

iles

CAGR Trade Tonne-Miles

1985-15 3.31% 3.17%

1995-15 4.26% 3.96%

2005-15 3.68% 3.46%

www.alfalaval.com

Market potential scrubbers- Expected market development, (MEUR)

KEUR

Sources: Clarkson Research Services, CE Delft Report 2016, EnSys Energy/ Navigistics Consulting Report 2016

0

200

400

600

800

1000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

New build

Retrofit

M€

2017-2025: 5,000 vessels with a

total market value of about 5 Bn€

www.alfalaval.com

KEUR

Market potential ballast water treatment- Expected market development after IMO ratification in September, 2016, (MEUR)

0

200

400

600

800

1000

1200

1400

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

New build

Retrofit

M€

2017-2025: 35,000 vessels with a

total market value of about 7 Bn€

www.alfalaval.com

In conclusion…- Marine Division

© Alfa Laval Slide 11

Leading position as the product and application

specialist with a broad and unique assortment

Marine transportation trends are positive, especially in

our stronghold sub-segments

New environmental regulations entering into force,

creates substantial opportunities the next coming years