report for q2 2009 - alfa laval1 125 1 350 1 575 1 800 0,0 3,0 6,0 9,0 12,0 15,0 18,0 21,0 24,0 sek...

Report for Q2 2009Report for Q2 2009

Mr. Lars RenstrMr. Lars Renströömm

President and CEOPresident and CEO

Alfa Laval GroupAlfa Laval Group

-- Orders received and marginsOrders received and margins

-- HighlightsHighlights

-- Development per segmentDevelopment per segment

-- Geographical developmentGeographical development

-- Financials Financials

-- OutlookOutlook

www.alfalaval.com© Alfa Laval Slide 3

Key figuresKey figures

�� Orders received dropped 37.3% to SEK 5,188 million.Orders received dropped 37.3% to SEK 5,188 million.

�� Net sales down 15.1% at SEK 6,746 million.Net sales down 15.1% at SEK 6,746 million.

�� Adjusted EBITA down 25.9% at SEK 1,175 million. Adjusted EBITA down 25.9% at SEK 1,175 million.

-- Positive currency effect SEK 74 million.Positive currency effect SEK 74 million.

April April –– June 2009June 2009

�� Orders received dropped 34.4% to SEK 11,041 million.Orders received dropped 34.4% to SEK 11,041 million.

�� Net sales down 10.3% at SEK 13,669 million.Net sales down 10.3% at SEK 13,669 million.

�� Adjusted EBITA down 18.9% at SEK 2,430 million. Adjusted EBITA down 18.9% at SEK 2,430 million.

-- Positive currency effect SEK 198 million.Positive currency effect SEK 198 million.

January January –– June 2009June 2009


0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

0

4 000

8 000

12 000

16 000

20 000

24 000

28 000

32 000

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q1

09

Q1

09

Q2

06

Q2

06

Q3

06

Q3

06

Q4

06

Q4

06

Q1

07

Q1

07

Q2

07

Q2

07

Q3

07

Q3

07

Q4

07

Q4

07

Q1

08

Q1

08

Q2

08

Q2

08

+35

%+

35

%

+17

%+

17

%

+40

%+

40

%

+36

%+

36

%

+13

%+

13

%

+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%

Q3

08

Q3

08

Q4

08

Q4

08

-- 15

%15

%

-- 32

%32

%

Q2

09

Q2

09

-- 37

%37

%


Order analysisOrder analysis

2008 2008 (SEK millions)(SEK millions)

Structural change, %Structural change, %

Currency effects,%Currency effects,%

Organic development, %Organic development, %

Total, %Total, %

2009 2009 (SEK million)(SEK million)

7,0667,066

April April –– June 2009June 2009

5,1885,188

+ 2.1 + 2.1

+10.7 +10.7

--39.439.4

-- 26.6 26.6


Organic development

4 000

5 000

6 000

7 000%%

Q2 08Q2 08 Q2 09Q2 09

-- 1.6%1.6%

-- 12.9%12.9%

-- 24.9%24.9%

MarineMarine

cancellationscancellationsMarineMarine

ordersorders

--73%73% OrdersOrders

otherother

segmentssegments

--26%26%


0

225

450

675

900

1 125

1 350

1 575

1 800

0,0

3,0

6,0

9,0

12,0

15,0

18,0

21,0

24,0

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

* Adjusted EBITA * Adjusted EBITA –– ””Earnings before interests, taxes, amortization of goodwill and sEarnings before interests, taxes, amortization of goodwill and step up values and comparison distortion items.tep up values and comparison distortion items.””

Adjusted EBITA / margin *Adjusted EBITA / margin *

Q108Q108 Q109Q109Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q208Q208 Q308Q308 Q408Q408 Q209Q209









-- OutlookOutlook

Interim Report Q2 2009Interim Report Q2 2009


Highlights during the quarterHighlights during the quarter

�� Order for enzyme production in the U.S.Order for enzyme production in the U.S.

Order value SEK 50 million. Delivery in 2010.Order value SEK 50 million. Delivery in 2010.

Large orders, total SEK 105 million (210) Large orders, total SEK 105 million (210)


Highlights during the quarterHighlights during the quarter

�� Order for enzyme production in the U.S. Order for enzyme production in the U.S.

Large orders, total SEK 105 million (210) Large orders, total SEK 105 million (210)

�� Refinery orders from Refinery orders from PetrobrasPetrobras in Brazilin Brazil

Value SEK 55 million. Delivery in 2011.Value SEK 55 million. Delivery in 2011.









-- OutlookOutlook



Orders received by customer segmentOrders received by customer segment

Comfort & Comfort &

RefrigerationRefrigeration

SanitarySanitary

Marine & DieselMarine & Diesel

Fluids & UtilityFluids & Utility

OEMOEM

Life ScienceLife Science

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

FoodFood

April April –– June 2009, June 2009, at constant ratesat constant rates

Parts & ServiceParts & Service−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

====

−−−−






FoodFood

Process Technology Division April Process Technology Division April –– June 2009, June 2009, at constant ratesat constant rates

−−−−

−−−−

====

−−−−

�� Continued growth forContinued growth for

Environment.Environment.

�� Low activity in ProcessLow activity in Process

Industry.Industry.

�� Food, Life Science Food, Life Science

grew grew vsvs first quarter.first quarter.



Comfort & Comfort &


SanitarySanitary



OEMOEM

Equipment Division, April Equipment Division, April -- June 2009, June 2009, at constant ratesat constant rates

−−−−

−−−−

−−−−

−−−−

−−−−

� Comfort & Ref and Sanitary

improved from first quarter.

� Continued decline for

Marine.



Comfort & Comfort &


SanitarySanitary



OEMOEM




FoodFood

January January –– June 2009, June 2009, at constant ratesat constant rates

Parts & ServiceParts & Service−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−

−−−−









-- OutlookOutlook



Orders received by RegionOrders received by Region

Centr

Centr. &

East 8 %

. & E

ast 8 %

North

Am

erica

17 %

North

Am

erica

17 %

Asia 30 %Asia 30 %

L. A

merica 5

%

L. A

merica 5

%

Other 2 %

Other 2 %

Western Europe 28 %

Western Europe 28 %

Nord

ic 1

0 %

Nord

ic 1

0 %


--3535-2929--2525

--2626

--5151

--4747


North America North America

�� U.S. order intake on about the same U.S. order intake on about the same

level as in the first quarter.level as in the first quarter.

Latin America Latin America

�� All countries declined except Mexico.All countries declined except Mexico.

�� Demand in the region on about the Demand in the region on about the

same level as in the first quarter. same level as in the first quarter.

Highlights AmericasHighlights AmericasApril April –– June 2009, June 2009, at constant ratesat constant rates

--4747

--2525


Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. Nordic

�� All segments, except Life Science, dropped.All segments, except Life Science, dropped.

Central and Eastern Europe Central and Eastern Europe

�� Overall decline with the exception of Overall decline with the exception of

Energy & Environment, which grew Energy & Environment, which grew

compared to last year.compared to last year.


--3535

--2626

--2929


Highlights AsiaHighlights Asia

Asia Asia

�� Continued negative effect from Marine.Continued negative effect from Marine.

�� Base business, excluding Marine, up Base business, excluding Marine, up

slightly compared to slightly compared to the two previous the two previous

quarters.quarters.


--5151


Orders received by RegionOrders received by Region

Centr

Centr. &

East 8 %

. & E

ast 8 %

North

Am

erica

17 %

North

Am

erica

17 %

Asia 30 %Asia 30 %

L. A

merica 5

%

L. A

merica 5

%

Other 2 %

Other 2 %

Western Europe 28 %

Western Europe 28 %

Nord

ic 1

0 %

Nord

ic 1

0 %

January January –– June 2009, June 2009, at constant ratesat constant rates

--3232-2525--2424

--2121

--4848

--4545

Mr. Thomas ThuressonMr. Thomas Thuresson

CFOCFO







-- OutlookOutlook



HighlightsHighlights

Order intake Order intake

Net salesNet sales

5,1885,188

6,7466,746

SEK millionsSEK millions April April –– June 2009June 2009


Gross profit marginGross profit margin

20

30

40

50In percent of salesIn percent of sales

37.737.7

43.543.5

39.339.3

Q109Q109

37.337.3

Q206Q206 Q306Q306 Q406Q406 Q107Q107 Q207Q207 Q307Q307 Q407Q407 Q108Q108 Q208Q208 Q308Q308 Q408Q408 Q209Q209




Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax


5,1885,188

6,7466,746

1,1751,175

17.4%17.4%

846846

www.alfalaval.com

Overview cost and capacity adjustment Overview cost and capacity adjustment -- update as per June 30update as per June 30thth, 2009, 2009

Total non-recurring charges: SEK 495 m

Non-recurring charges Q2: SEK 225 m

Total estimated savings: SEK 850 m

Savings achieved in Q2: SEK 170 m

- Savings from January program – full impact from Q4 2009

- Savings from further measures – full impact from Q1 2010

Capacity reduction targeted with initiated savings: 25 - 35 %

Total estimated reduction in FTE’s: 1,700

Reductions as per June 30th 900

- of which work-sharing represents approx. 30 FTE’s


Earnings per shareEarnings per share

EarningsEarnings

Earnings, excluding stepEarnings, excluding step--upup

20092009

3.293.29

3.553.55

20082008

4.474.47

4.684.68

Jan Jan –– June June

20092009

1.491.49

1.621.62

20082008

2.412.41

2.492.49

April April –– JuneJune




Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax

Cash flow from operating activitiesCash flow from operating activities

ROCEROCE

ROEROE


5,1885,188

6,7466,746

1,1751,175

17.4% 17.4%

846846

1,2951,295

42.5%42.5%

32.8%32.8%


Cash flow fromCash flow from

-- operating activitiesoperating activities

-- investing activitiesinvesting activities

Financial Financial net paidnet paid

TotalTotal

CashCash--flow statement flow statement

Pro Forma FreePro Forma Free--cashcash--flow*flow*

**Incl. operating activities, capital expenditure and financial neIncl. operating activities, capital expenditure and financial net paid. t paid.

SEK millionsSEK millionsJan Jan –– June June

20092009Jan Jan -- JuneJune

20082008

2,3532,353

-- 1,3361,336

--188188

829829

1,9671,967

1,9291,929

--687687

--6363

1,1791,179

732732


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effect

Transaction effectTransaction effect

TotalTotal

*Based on EUR/USD 1. 40 and EUR/SEK 10.75*Based on EUR/USD 1. 40 and EUR/SEK 10.75

Estimated impact on adjusted EBITA from Estimated impact on adjusted EBITA from FXFX fluctuationsfluctuations

H1 09H1 09

298298

-- 100100

198198

WY 10*WY 10*

--

500 500

500500

WY 09WY 09

465465

1010

475475

Q2 09Q2 09

153153

-- 7979

7474


Order backlog as per June 30

SEK millionsSEK millions

For delivery during rest of current yearFor delivery during rest of current year

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

5,3135,313

8,311

13,62413,6246,5896,589

9,033

15,62215,622

6,0596,059

8,514

14,57314,573

For delivery next year or laterFor delivery next year or later

2009200920072007 20082008




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





-- OutlookOutlook



Outlook for the third quarterOutlook for the third quarter

““We expect demand during the We expect demand during the

third quarter to be on about the third quarter to be on about the

same level as during the second same level as during the second

quarter 2009.quarter 2009.””

report for q2 2009 - alfa laval1 125 1 350 1 575 1 800 0,0 3,0 6,0 9,0 12,0 15,0 18,0 21,0 24,0 sek...

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