report for q2 2013 - alfa laval · april april – june 2013, at constant rates and like for l june...

18/07/2013

© Alfa Laval 1

Report for Q2 2013Report for Q2 2013

Mr. Lars RenströmMr. Lars Renström

President and CEOPresident and CEO

Alfa 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

18/07/2013

© Alfa Laval 2

www.alfalaval.com© Alfa Laval Slide 3

Key figuresKey figures

�� Orders received declined 4% to SEK 7,558 million.Orders received declined 4% to SEK 7,558 million.

�� Net sales dropped 3% to SEK 7,549 million.Net sales dropped 3% to SEK 7,549 million.

�� Adjusted EBITA declined 4% to SEK 1,237 million. Adjusted EBITA declined 4% to SEK 1,237 million.

�� Adjusted EBITA margin 16.4% Adjusted EBITA margin 16.4% vsvs 16.5%16.5%

-- Negative currency effect SEK 63 million.Negative currency effect SEK 63 million.

April April –– June 2013June 2013

January January –– June 2013June 2013

�� Orders received declined 7% to SEK 14,718 million.Orders received declined 7% to SEK 14,718 million.

�� Net sales dropped 4% to SEK 14,084 million.Net sales dropped 4% to SEK 14,084 million.

�� Adjusted EBITA declined 5% to SEK 2,304 million. Adjusted EBITA declined 5% to SEK 2,304 million.

�� Adjusted EBITA margin 16.4% Adjusted EBITA margin 16.4% vsvs 16.5%16.5%

-- Negative currency effect SEK 95 million.Negative currency effect SEK 95 million.

Report for Q2 2013Report for Q2 2013-- Key figures Key figures

--Orders received and marginsOrders received and margins

--Highlights Highlights




-- OutlookOutlook

18/07/2013

© Alfa Laval 3

www.alfalaval.com

0

4 000

8 000

12 000

16 000

20 000

24 000

28 000

32 000

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

= = Order Order intake per intake per quarter quarter

= = Order Order intake per intake per quarter “large”quarter “large”

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12

= = Rolling Rolling twelve months valuetwelve months value

Q2

13

Q2

13

Q4

10

Q4

10

Q11

1Q

111

Q3

11

Q3

11

Q11

2Q

112

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

Q11

3Q

113

Q2

09

Q2

09

Q3

09

Q3

09

Q4

09

Q4

09

Q11

0Q

110

Q2

10

Q2

10

Q3

10

Q3

10

Q2

11

Q2

11

+1

%+

1%

Q4

11

Q4

11

+3

%+

3%

+3

2%

+3

2%

+2

5%

+2

5%

--37

%3

7%


Order analysisOrder analysis

Q2 2012 Q2 2012 Q1 2013Q1 2013

Structural change, %Structural change, %

Organic development, %Organic development, %

TotalTotal

Currency effects,%Currency effects,%

7,9047,904

Q2 2013 versus Q2 2012 and versus Q1 2013 (MSEK)Q2 2013 versus Q2 2012 and versus Q1 2013 (MSEK)

7,5587,558

+ + 2.2 2.2

-- 1.41.4

+ 0.8+ 0.8

-- 5.25.2

7,1607,160

7,5587,558

+ 0.1 + 0.1

+ 4.6+ 4.6

+ 4.7+ 4.7

+ 0.9+ 0.9

Total, %Total, %

Q2 2013Q2 2013

-- 4.4 4.4 + 5.6+ 5.6

Q2 2013 Q2 2013

18/07/2013

© Alfa Laval 4


0,00,0

3,03,0

6,06,0

9,09,0

12,012,0

15,015,0

18,018,0

21,021,0

24,024,0

00

225225

450450

675675

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 –– ”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.”

Adjusted EBITA / Adjusted EBITA / margin*margin*

Q211Q211 Q212Q212 Q113Q113 Q213Q213Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q311Q311 Q411Q411 Q112Q112 Q312Q312 Q412Q412


-- Orders received and marginsOrders received and margins

-- Highlights Highlights




-- OutlookOutlook

18/07/2013

© Alfa Laval 5

www.alfalaval.com

Highlights in the quarter

Alfa Laval Packniox heat exchangers to a

petrochemical plant in the Middle East.

Value: SEK 85 million

Alfa Laval PureSOx systems to MAN

Diesel & Turbo for two new cruise ships.

Value: SEK 55 million.

Acquisition of U.S.-based Niagara Blower

Company. A manufacturer of energy-

efficient niche heat-transfer solutions,

especially suited for the oil & gas

processing industries.

Sales of SEK 425 million in 2012.

Alfa Laval PureSOx exhaust gas cleaning

systems for retrofit installation.

Value: SEK 170 million

Process TechnologyProcess Technology Marine & DieselMarine & Diesel



-- Orders received and margins Orders received and margins




-- OutlookOutlook

18/07/2013

© Alfa Laval 6

www.alfalaval.com

Industrial EquipmentIndustrial Equipment

OEMOEM

Sanitary EquipmentSanitary Equipment

EQD Parts EQD Parts & Service& Service

Equipment divisionEquipment division

Marine & Diesel divisionMarine & Diesel division

Process Technology divisionProcess Technology division

Orders received by customer segmentOrders received by customer segment

==

++

--

==

Marine & Diesel Marine & Diesel

EquipmentEquipment

Marine & Offshore Marine & Offshore

SystemsSystems

MDD Parts MDD Parts & & ServiceService

++

--

--

PTD Parts PTD Parts & Service& Service

Process IndustryProcess Industry

Food TechnologyFood Technology

Energy & EnvironmentEnergy & Environment

++

--

--

++

YearYear--onon--year comparisonyear comparison

April April –– June 2013, at constant rates and like for likeJune 2013, at constant rates and like for like

www.alfalaval.com

Order Sales Backlog

Q2 2013 2,510 2,387 1,735

Q2 2012 2,573 2,363 1,710


Slide 12

�� Sanitary saw good demand for products for Sanitary saw good demand for products for beverage and dairy applications. beverage and dairy applications.

�� Significant growth for Industrial Equipment due to Significant growth for Industrial Equipment due to seasonal effects. seasonal effects.

�� OEM grew, boosted by demand from OEM grew, boosted by demand from manufacturers of heat pumps and air conditioning manufacturers of heat pumps and air conditioning units, as the season for making heating and units, as the season for making heating and cooling installations took off. cooling installations took off.

SanitarySanitary10%*10%*

Industrial Industrial EquipmentEquipment

14%14%

OEMOEM4%4%

Parts & ServiceParts & Service5%5%

== ==

++ ++

== ++

-- ++


Sequential comparisonSequential comparison

Highlights and sequential commentsHighlights and sequential comments

*Share of Group total*Share of Group total

18/07/2013

© Alfa Laval 7

www.alfalaval.com

Order Sales Backlog

Q2 2013 3,239 3,496 8,508

Q2 2012 3,553 3,366 7,936


Slide 13

�� Food reported growth for base business and large Food reported growth for base business and large contracts alike. Brewery and Food Solutions both contracts alike. Brewery and Food Solutions both developed well. Vegetable oil declined somewhat, but developed well. Vegetable oil declined somewhat, but still strong activity level in Asia and CEE. still strong activity level in Asia and CEE.

�� Energy & Environment down partly due to nonEnergy & Environment down partly due to non--repeats, partly as the very high activity in O&G repeats, partly as the very high activity in O&G industry strained industry resources, leading to industry strained industry resources, leading to certain projects being postponed. certain projects being postponed.

�� Process Industry supported by the base business. Process Industry supported by the base business. Large orders were unchanged from first quarter.Large orders were unchanged from first quarter.


++ ==

-- ++

-- --

++ ++




Food Tech.Food Tech.8%*8%*

Energy & Energy & EnvironEnviron..10%10%

Process IndustryProcess Industry12%12%


www.alfalaval.com

Order Sales Backlog

Q2 2013 1,809 1,666 4,649

Q2 2012 1,778 2,082 5,410


Slide 14

�� Marine & Diesel Equipment saw base business Marine & Diesel Equipment saw base business growth, reflecting an increase in yard growth, reflecting an increase in yard contractingcontracting. .

�� Marine & Offshore Systems lifted by a strong Marine & Offshore Systems lifted by a strong base business development as well as two base business development as well as two large contracts for Alfa Laval large contracts for Alfa Laval PureSOxPureSOx. .

�� Demand for parts and services declined as Demand for parts and services declined as large repair orders were not repeated. large repair orders were not repeated.

-- --

++ ++

-- ==




Marine & Diesel Marine & Diesel Equipment Equipment

8%*8%*

Marine & Marine & Offshore SystemsOffshore Systems

7%7%



18/07/2013

© Alfa Laval 8

www.alfalaval.com

Industrial EquipmentIndustrial Equipment

OEMOEM

Sanitary EquipmentSanitary Equipment

EQD Parts EQD Parts & Service& Service




Orders received by customer segmentOrders received by customer segment

==

==

==

==

Marine & Diesel Marine & Diesel

EquipmentEquipment

Marine & Offshore Marine & Offshore

SystemsSystems

MDD Parts MDD Parts & & ServiceService

++

--

==

PTD Parts PTD Parts & Service& Service

Process IndustryProcess Industry

Food TechnologyFood Technology

Energy & EnvironmentEnergy & Environment

==

--

--

==


January January –– June 2013, at constant rates and like for likeJune 2013, at constant rates and like for like







-- OutlookOutlook

18/07/2013

© Alfa Laval 9

www.alfalaval.com© Alfa Laval

Orders received by RegionOrders received by Region

Central Central & Eastern & Eastern

Europe 9%Europe 9%

North America North America 18%18%

Asia Asia 31%31%

Latin Latin America America

7%7%

Western Europe Western Europe 22%22%

Nordic Nordic 11%11%


-12

-1

+11

+10

+7

-5

April April –– June 2013, development at constant ratesJune 2013, development at constant rates


Highlights AsiaHighlights Asia



April April –– June 2013 , at constant rates, sequential commentsJune 2013 , at constant rates, sequential comments

Asia: Asia:

�� Strong baseStrong base--business in all three divisions. business in all three divisions. As a whole, Marine & Diesel and Equipment As a whole, Marine & Diesel and Equipment grew, while Process Technology declined grew, while Process Technology declined somewhat due to nonsomewhat due to non--recurring orders. recurring orders.

�� Marine saw a positive impact from new ship Marine saw a positive impact from new ship contracting in general, and for oil & gas contracting in general, and for oil & gas transportation vessels in particular. transportation vessels in particular.

�� China reported broadChina reported broad--based growth, for based growth, for base business and large orders alike, as base business and large orders alike, as “wait“wait--andand--see” approach to investments see” approach to investments seemed to have eased somewhat. seemed to have eased somewhat.

-1 +5

18/07/2013

© Alfa Laval 10


Highlights EuropeHighlights Europe



April April –– June 2013, at constant rates, sequential commentsJune 2013, at constant rates, sequential comments

Western Europe incl. Nordic:Western Europe incl. Nordic:

�� Positive development for base business Positive development for base business and large orders alike. Parts & Service and large orders alike. Parts & Service was unchanged versus the first quarter.was unchanged versus the first quarter.

�� Growth across most countries and Growth across most countries and sales regions. sales regions.

-12 +10

+7 +29

-5 +4

Central Central and Eastern and Eastern Europe: Europe:

�� Growth explained by a very good base Growth explained by a very good base business development. Central Europe, business development. Central Europe, Poland and the Baltic states all did well.Poland and the Baltic states all did well.

�� Russia was flat as a decline in large Russia was flat as a decline in large orders was compensated by growth in orders was compensated by growth in the base business.the base business.. .


Highlights AmericasHighlights Americas



+11 -10

+10 +10

+11 -10

+10 +10

April April –– June 2013, at constant rates, sequential commentsJune 2013, at constant rates, sequential comments

North North America: America:

�� Decline explained by nonDecline explained by non--repeat large contracts. repeat large contracts.

Base business and Parts & Service remained Base business and Parts & Service remained

unchanged. unchanged.

�� Oil & Gas affected by customers delaying projects Oil & Gas affected by customers delaying projects

due to lack of resources. due to lack of resources.

Latin America: Latin America:

�� Large orders in the food and oil & gas sectors Large orders in the food and oil & gas sectors

contributed to the development. The base business contributed to the development. The base business

also reported growth. also reported growth.

18/07/2013

© Alfa Laval 11


Orders received by RegionOrders received by Region

Central Central & Eastern & Eastern

Europe 8%Europe 8%

North America North America 20%20%

Asia Asia 31%31%

Latin Latin America America

7%7%

Western Europe Western Europe 22%22%

Nordic Nordic 10%10%


-11

-8

+1

+5

-1

+1

January January –– June 2013, development at constant ratesJune 2013, development at constant rates


Top 10 markets*Top 10 markets*

0 1 000 2 000 3 000 4 000 5 000

Canada

Brazil

Adriatic

Russia

Mid Europe

South East Asia

Korea, South

Nordic

China

United States

SEK million at prevailing ratesSEK million at prevailing rates

= = WY 2012WY 2012

= = R12 as per end of JuneR12 as per end of June *The development of the 2012 top ten markets.*The development of the 2012 top ten markets.

18/07/2013

© Alfa Laval 12


Mr. Thomas Mr. Thomas ThuressonThuresson

CFOCFO








-- OutlookOutlook


HighlightsHighlights

Order intake Order intake

Net salesNet sales

SEK millionsSEK millions April April –– June 2013June 2013

7,5587,558

7,5497,549

18/07/2013

© Alfa Laval 13


Gross profit marginGross profit margin

3030

4040

5050

In percent of salesIn percent of sales

37.937.9

37.037.0

41.141.1

Q212Q212

39.639.6

Q412Q412 Q113Q113 Q213Q213Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q211Q211 Q311Q311 Q411Q411 Q112Q112 Q312Q312


HighlightsHighlights

Order intake Order intake

Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax

Earnings per shareEarnings per share

Earnings per share, excl stepEarnings per share, excl step--upup

ROCEROCE

ROEROE

SEK millionsSEK millions April April –– June 2013June 2013

7,5587,558

7,5497,549

1,2371,237

16.4% 16.4%

969969

1.531.53

1.811.81

26.2%26.2%

22.0%22.0%

18/07/2013

© Alfa Laval 14


Cash flow fromCash flow from

-- operating activitiesoperating activities

-- investing activitiesinvesting activities

Financial Financial net paidnet paid

TotalTotal

CashCash--flow statement flow statement

Pro Forma Pro Forma Free cashFree cash--flowflow**

SEK millionsSEK millions

1H1H

20132013

1H1H

20122012

2,0122,012

-- 691691

-- 1919

1,8111,811

1,6771,677

-- 1,4971,497

-- 5252

1,3801,380

1,3021,302 128128

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

Q2Q2

20132013Q2Q2

20122012

1,0381,038

-- 541541

-- 6262

876876

640640

-- 803803

-- 3939

450450

435435 --202202


Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effect

Transaction effectTransaction effect

TotalTotal

*Based on EUR/USD 1.30 and EUR/SEK 8.75*Based on EUR/USD 1.30 and EUR/SEK 8.75

Estimated impact on adjusted EBITA from FX fluctuationsEstimated impact on adjusted EBITA from FX fluctuations

FY 14*FY 14*

00

-- 1515

-- 1515

FY 13FY 13

-- 105105

-- 2020

-- 125125

Projected FXProjected FX--effect for 2013 as communicated with the Q1 report effect for 2013 as communicated with the Q1 report SEK SEK --195 million 195 million

Q2 13Q2 13

-- 5656

--77

-- 6363

1H 131H 13

-- 9898

33

-- 9595

18/07/2013

© Alfa Laval 15


Order backlog as per June 30 Order backlog as per June 30

SEK millionsSEK millions

For delivery For delivery in 2013in 2013

00

2 0002 000

4 0004 000

6 0006 000

8 0008 000

10 00010 000

12 00012 000

14 00014 000

16 00016 000

For delivery For delivery later than 2013later than 2013

Q213Q213Q209Q209 Q210Q210 Q211Q211 Q212Q212

1.0

31.0

3

0.8

90.8

9

1.1

01.1

0

1.0

01.0

0

1.0

11.0

1

BookBookto billto bill

14,89214,892

9,7919,791

5,1015,101

15,05615,056

9,8509,850

5,2065,206

www.alfalaval.com

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 -- 0.90.9

AcquisitionsAcquisitions ++ 0.70.7

SubtotalSubtotal 29.529.5

Orders “inOrders “in--forfor--out” ?out” ?

Price ?Price ?

Full year 2013Full year 2013

Full year 2013Full year 2013

18/07/2013

© Alfa Laval 16


Mr. Lars RenströmMr. Lars Renström

President and CEOPresident and CEO








-- OutlookOutlook


Outlook for the third quarterOutlook for the third quarter

“We expect that demand “We expect that demand

during the third quarter will during the third quarter will

be on about the same level as be on about the same level as

in the second quarter.”in the second quarter.”

18/07/2013

© Alfa Laval 17


www.alfalaval.com

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

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 34

report for q2 2013 - alfa laval · april april – june 2013, at constant rates and like for l june...

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