Report for Q4 2014 - Alfa Laval · 2016-10-25 · Report for Q4 2014 Mr. Lars Renström President and CEO Alfa Laval Group - Key figures - Orders received and margins - Highlights

Report for Q4 2014

Mr. Lars RenströmPresident and CEOAlfa Laval Group

- Key figures

- Orders received and margins

- Highlights

- Development per segment

- Geographical development

- Financials

- Outlook

www.alfalaval.com© Alfa Laval Slide 3

Key figures

� Orders received rose 29% to SEK 10,509 million.

� Net sales grew 25% to SEK 10,775 million.

� Adjusted EBITA increased 37% to SEK 1,940 million.

� Adjusted EBITA margin 18.0% vs 16.4%

- Positive currency effect SEK 97 million.

Oct – Dec 2014

� Orders received rose 21% to SEK 36,660 million.

� Net sales increased 18% to SEK 35,067 million.

� Adjusted EBITA grew 20% to SEK 5,895 million.

� Adjusted EBITA margin 16.8% vs 16.5%

- Positive currency effect SEK 70 million.

Jan – Dec 2014


Integration of Frank Mohn AS- Certain items in the Q4 P&L

Group MSEK Q4 2014 Framo

certainitems

Excluding Framo Impact

Order intake 10,509 1,001 9,508

Order backlog 22,293 952 21,341

Sales 10,775 50 10,725

Gross profit 3,415 -89 3,504

Other op income/cost 19 34 -15

Adjusted EBITA 1,940 -55 1,995

Financial net - 485 -440 -45

Pretax profit 1,177 -495 1,672

The change to IFRS reporting in Frank Mohn AS, together with the considerable weakening of the NOK, had a big impact on the P&L in the fourth quarter.

As per above, the financial net was negatively influenced by realized and unrealized fx-differences of SEK 240 and SEK 200 million respectively.

www.alfalaval.com

Board proposal to the AGM

© Alfa Laval Slide 5

Dividend

The Board of directors proposes

a dividend of SEK 4.00 (3.75)

Report for Q4 2014- Key figures


- Highlights



- Financials

- Outlook

www.alfalaval.com

0

5000

10000

15000

20000

25000

30000

35000

40000

0

2 000

4 000

6 000

8 000

10 000

12 000

= Order intake per quarter

= Order intake per quarter “large”

SEK million

Orders received

SEK million R 12

= Rolling twelve months value

Q2

13

Q4

10

Q111

Q3

11

Q11

2

Q2

12

Q3

12

= % development at constant rates by

quarter, year on year+XX%

Q4

12

Q11

3

Q3

13

Q4

13

Q11

4

Q2

14

Q3

14

Q4

14

Q2

11

+2

2%

Q4

11

+1

6%

+11

%

+9

%

+2

3%


Order analysis

Q4 2013 Q3 2014

Structural change, %

Organic development, %

Total

Currency effects,%

8,133

Q4 2014 versus Q4 2013 and versus Q3 2014 (MSEK)

10,509

+ 21.8

+ 0.7

+ 22.5

+ 6.7

9,708

10,509

+ 0.1

+ 6.4

+ 6.5

+ 1.8

Total, %

Q4 2014 Q4 2014

+ 8.3+ 29.2


0,0

3,0

6,0

9,0

12,0

15,0

18,0

21,0

24,0

0

250

500

750

1 000

1 250

1 500

1 750

2 000

SEK millions and in percent of sales

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

Adjusted EBITA / margin*

Q314Q212 Q113 Q213 Q313 Q413 Q114 Q214 Q414Q411 Q112 Q312 Q412



- Highlights



- Financials

- Outlook

www.alfalaval.com

Highlights in the quarter

OLMI air-cooled heat exchangers for an oil and gas production facility in Kazakhstan.

Value: SEK 290 million

Packinox heat exchanger to a petrochemical plant in South Korea. Value: SEK 85 million.

Fuel oil treatment system for a power plant in the Middle East. Value: SEK 60 million

Heat exchangers for a U.S. oil production facility. Value: SEK 55 million.

Compact heat exchangers for heat recovery duty in anoil production facility in Canada.


Heat exchangers for duties onboard two FPSOs. Value SEK50 million.

Complete process line for extracting starch and gluten from wheat in a Russian processing plant.


Process line for tall-oil manufacturing in Russia.Value: SEK 50 million

Orders taken for 12 EGC systems for 12 ships. In 2014, 47 systems were ordered, for 45 ships.

Process Technology

Marine & Diesel

Process Technology

Report for Q4 2014

- Key figures




- Financials

- Outlook

www.alfalaval.com

Orders received by customer segment


Industrial Equipment

OEM

Sanitary Equipment

EQD Service

-

=

-

+

Marine & Offshore Syst.

Marine & Diesel Eq.

Marine & Offshore* Pumping Systems

=

+

*

PTD Service

Food & Life Science

Water & Waste

Energy & Process

-

-

+

-

Oct. – Dec. 2014, at constant rates and like for like

Equipment division

Marine & Diesel division

Process Technology division

Year-on-year comparison

MDD Service +

*Marine & Offshore Pumping Systems is a newly formed segment

and therefore lacks comparison numbers

www.alfalaval.com

Order Sales Backlog

Q4 2014 2,523 2,629 1,571

Q4 2013 2,408 2,518 1,495

Equipment division

Slide 14

� Industrial Equipment down amid seasonally lower

activity for heating and cooling installations.

Unchanged demand for refrigeration products.

� Sanitary saw generally higher demand from dairy,

non-viscous food and pharmaceutical industries.

� OEM lifted by good demand from customers

manufacturing boilers, air-conditioning units and

diesel engines.

Industrial

Equipment

8%*

Sanitary

8%

OEM

4%

Service

4%

+ =

= +

- +

- -


Sequential comparison

Highlights and sequential comments

*Share of Group total

www.alfalaval.com

Order Sales Backlog

Q4 2014 4,058 3,790 12,282

Q3 2013 1,839 1,826 4,680


Slide 15

� M&D Equipment declined, mainly due to lower demand for environmental solutions. Diesel power was somewhat lower, while demand for products going into new ships was unchanged.

� M&O Systems boosted by EGC systems and boilers for offshore applications. Marine boilers declined.

� M&O Pumping Systems boosted by Framo backlog revaluation of SEK 1 bln. Underlying, orders were down due to non-repeats as well as weaker yard contracting.

+

+ +

= -




Marine & Diesel

Equipment

7%*

Marine &

Offshore Systems

7%*

Service

10%*


+

Marine & Offshore

Pumping Systems

14%*

* +

Frank Mohn AS contribution: orders: SEK 1 732 mlnsales: SEK 1 483 mlnorder backlog: SEK 6 172 mln

www.alfalaval.com

Order Sales Backlog

Q4 2014 3,928 4,356 8,440

Q4 2013 3,886 4,265 8,393


Slide 16

� Energy & Process lifted by the largest order to date

in oil & gas. Power, petrochemicals and refinery all

did well. Oil & gas base business declined due to

slower activity among customers.

� Food & Life Science up with good growth for

protein, vegetable oil, brewery and life science.

� Service declined somewhat, affected by lower

activity level in Energy & Process.

Service

10%*

- -

- =

- +

+ +




Energy &

Process 18%*

Food & Life

Science 8%*

Water & Waste

Treatment 2%*


www.alfalaval.com

Orders received by customer segment


Industrial Equipment

OEM

Sanitary Equipment

EQD Service

=

=

=

=

Marine & Offshore Syst.

Marine & Diesel Eq.

Marine & Offshore Pumping

+

PTD Service

Food & Life Science

Water & Waste

Energy & Process

+

-

=

-

Equipment division




MDD Service +

January – December 2014, at constant rates and like for like

+

*

Marine & Offshore Pumping Systems is a newly formed

segment and therefore lack comparison numbers



- Highlights



- Financials

- Outlook

www.alfalaval.com© Alfa Laval

Orders received by Region

Central & Eastern Europe 8%

North America 18%

Asia 40%

Latin America 5%

Western Europe 21%

Nordic 7%


+5

+58

+8

-4

-4

+23

Oct – Dec 2014, development at constant rates


Highlights Asia



Oct – Dec 2014, at constant rates, sequential comments

Asia:

� Orders grew as Framo’s backlog was

revaluated. Excluding that, orders were slightly

lower, mainly due to the effect from shipyard

contracting. Marine project orders remained on

a high level.

� In Process Technology both the base business

and large orders grew. Strong development for

Energy & Process and Food & Life Science.

� Equipment was slightly slower as continued

weak construction industry affected Industrial

Equipment.

+58 +7


Highlights Europe




Western Europe incl. Nordic:

� Region as a whole saw higher order intake

as both base business and large projects

grew. Energy & Process, M&D Equipment

and Water & Waste all did well.

� UK and France developed positively while

Mid Europe and Nordic declined.

+5 +40

-4 -2

+23 +22

Central and Eastern Europe:

� Very strong due to good base business

as well as a number of large orders.

� Russia main driver for region’s positive

development, showing substantial

growth versus Q3.


Highlights Americas



+8 -15

-4 +24

+8 -15

-4 +24


North America:

� Decline in both the US and Canada, mainly due to the

non-repeat of large projects, particularly in Energy &

Process. The base business also declined somewhat.

� Favourable development in Sanitary, M & D

Equipment and M & O Systems.

Latin America:

� Growth driven by Brazil as well as a generally good

base business development across the region thanks

to high activity in food, dairy and marine.

� Brazil saw a number of larger orders in the food and

oil & gas industries.


Orders received by Region

Central & Eastern Europe 7%

North America 19%

Asia 38%

Latin America 5%

Western Europe 21%

Nordic 8%


-2

+41

+18

-5

-2

+11

January – December 2014, development at constant rates


Top 10 markets*

SEK million at prevailing rates

= WY 2013

= WY 2014 *The development of the 2013 top ten markets.

Report for Q4 2014

Mr. Thomas ThuressonCFOAlfa Laval Group

- Key figures


- Highlights



- Financials

- Outlook


Highlights

Order intake

Net sales

SEK millions Oct – Dec 2014

10,509

10,775


Gross profit margin

30

35

40

45

In percent of sales

34.3

36.337.0

Q212

37.8

Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414Q411 Q112 Q312


Gross profit margin

Q4 2013 Q3 2014

Mix/price

Load/volume

FX

Structure mix

FX, unrealized

36.3

Q4 2014 versus Q4 2013 and versus Q3 2014

34.3

- - -

-

+

- -

35.3

34.3

-

=

+

-

Q4 2014 Q4 2014

- - -


Highlights

Order intake

Net sales

Adjusted EBITA

Adjusted EBITA-margin

Profit before tax

Earnings per share

Earnings per share, excl step-up

ROCE

ROE

SEK millions Oct – Dec, 2014

10,509

10,775

1,940

18.0%

1,177

2.15

2.62

20.5%

17.6%

www.alfalaval.com

Divisional performance


Equipment Process Technology Marine & Diesel

Q4 2014 2013 2014 2013 2014 2013

Orders 2,523 2,408 3,928 3,886 4,058 1,839

Backlog 1,571 1,495 8,440 8,393 12,282 4,680

Sales 2,629 2,518 4,356 4,256 3,790 1,826

Op. profit 407 339 636 806 737 419

Op margin (%) 15.5 13.5 14.6 18.9 19.4 22.9

Frank Mohn AS contribution to Marine & Diesel Division: orders: SEK 1 732 Msales: SEK 1 483 Morder backlog: SEK 6 172 M


Cash flow from

- operating activities

- investing activities

Financial net paid

Dividend

Total

Cash-flow statement

Pro Forma Free cash-flow*

SEK millions

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

Q42014

Q42013

1,690

-180

- 320

1,230

- 165

- 51

-

972

1,190 1,014

1,165

FY2013

4,233

- 951

- 102

-1,468

3,639

1,712

FY2014

5,123

-14,970

- 433

- 1,578

- 11,858

4,087


Foreign exchange

SEK million

Translation effect

Transaction effect

Total

*Based on EUR/USD 1.20 and EUR/SEK 9.45

FY 15*

150

130

280

FY 14

100

- 30

70

Projected FX-effect for 2014 as communicated at the CMD: Between SEK 25 and SEK 65 million

Q4 14

82

15

97

Estimated impact on adjusted EBITA from FX fluctuations


Order backlog as per Dec 31

SEK millions

For delivery in 2015

0

5 000

10 000

15 000

20 000

25 000

For delivery after 2015

Q413 Q414Q410 Q411 Q412

22,293

17,2

50

5,0

43

14,568

3,1

30

11,4

38

book to bill

www.alfalaval.com

Sales

SEK (bln)

Full year 2014 35.1

Order backlog, like-for-like + 1.0

FX-translation + 1.0

Acquisitions + 1.6

Subtotal 38.7

Orders “in-for-out” ?

Price ?

Full year 2015

Full year 2015

Report for Q4 2014

Mr. Lars RenströmPresident and CEOAlfa Laval Group

- Key figures


- Highlights



- Financials

- Outlook


Outlook for the first quarter

“We expect that demand

during the first quarter will be

somewhat lower than in the

fourth quarter.”


www.alfalaval.com

Cautionary 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.


Documents

Report for Q4 2014 - Alfa Laval · 2016-10-25 · Report for Q4 2014 Mr. Lars Renström President and CEO Alfa Laval Group - Key figures - Orders received and margins - Highlights