ReportReport for Q2 2011 for Q2 2011 - Alfa Laval · 2016. 10. 25. · Order for a Order for a process line to process line to a vegetable oil plant in India worth a vegetable oil

ReportReport for Q2 2011for Q2 2011

Mr. Lars RenströmMr. Lars RenströmPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group

-- Orders received and marginsOrders received and margins

-- HighlightsHighlights

-- Development per segmentDevelopment per segment

-- Geographical developmentGeographical development

-- Financials Financials

-- OutlookOutlook

Key figuresKey figures

�� Orders received rose 18% to SEK 7,424 million.Orders received rose 18% to SEK 7,424 million.

�� Net sales increased 11% to SEK 7,033 million.Net sales increased 11% to SEK 7,033 million.

�� Adjusted EBITA up 12% at SEK 1,335 million. Adjusted EBITA up 12% at SEK 1,335 million.

�� Adjusted EBITA margin 19.0% Adjusted EBITA margin 19.0% vsvs 18.7%18.7%

-- Negative currency effect SEK 189 million.Negative currency effect SEK 189 million.

April April –– June 2011June 2011

www.alfalaval.com© Alfa Laval Slide 3


�� Orders received rose 22% to SEK 13,879 million.Orders received rose 22% to SEK 13,879 million.

�� Net sales increased 10% to SEK 12,932 million.Net sales increased 10% to SEK 12,932 million.

�� Adjusted EBITA up 12% at SEK 2,469 million. Adjusted EBITA up 12% at SEK 2,469 million.

�� Adjusted EBITA margin 19.1% Adjusted EBITA margin 19.1% vsvs 18.8%18.8%


January January –– June 2011June 2011

16 000

20 000

24 000

28 000

32 000

4 000

5 000

6 000

7 000

8 000

SEK millionSEK million

Orders receivedOrders received

SEK million R 12SEK million R 12


0

4 000

8 000

12 000

16 000

0

1 000

2 000

3 000

4 000

= rolling twelve months value= rolling twelve months value

= order intake per quarter= order intake per quarter

Q109

Q109

Q410

Q410

Q111

Q111

Q207

Q207

Q307

Q307

Q407

Q407

Q108

Q108

Q208

Q208

+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%

Q308

Q308

Q408

Q408

--15%

15%

--32%

32%

Q209

Q209

--37%

37%

Q309

Q309

--30%

30%

Q409

Q409

--9%

9%

--6%

6%

Q110

Q110

Q210

Q210

+25%

+25%

Q310

Q310

+23%

+23%

+23%

+23%

+ 3

2%

+ 3

2%

Q211

Q211

+38%

+38%

Order analysisOrder analysis

2010 2010 (SEK millions)(SEK millions)

Structural change, %Structural change, %

Currency effects,%Currency effects,%

Organic development, %Organic development, %

Total, %Total, %

6,2676,267

April April –– June 2011June 2011

+ + 9.4 9.4

-- 13.813.8

+ 22.9+ 22.9

+ 18.5+ 18.5


Total, %Total, %

2011 2011 (SEK million)(SEK million) 7,4247,424

+ 18.5+ 18.5

12,0

15,0

18,0

21,0

24,0

1 125

1 350

1 575

1 800

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

Adjusted EBITA / margin *Adjusted EBITA / margin *


0,0

3,0

6,0

9,0

12,0

0

225

450

675

900

* 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.”

Q211Q211Q109Q109 Q409Q409 Q110Q110 Q210Q210 Q310Q310 Q410Q410 Q111Q111Q208Q208 Q308Q308 Q408Q408 Q209Q209 Q309Q309

InterimInterim ReportReport Q2 2011Q2 2011







-- OutlookOutlook

Highlights during the quarterHighlights during the quarter

�� Solar power order in the U.S.Solar power order in the U.S.PackinoxPackinox heat exchangers to the world’s largest concentrated solar power heat exchangers to the world’s largest concentrated solar power

plant. Delivery is scheduled for 2012.plant. Delivery is scheduled for 2012.

Total large ordersTotal large orders > SEK 500 > SEK 500 MlnMln (240 (240 MlnMln))

www.alfalaval.comSlide 8


�� Solar power order in the U.S.Solar power order in the U.S.�� EnergyEnergy--efficiency order in Russia. efficiency order in Russia.

Order for compact heat exchangers to a Russian refinery worth Order for compact heat exchangers to a Russian refinery worth

approximately SEK 70 million, delivery scheduled for 2012.approximately SEK 70 million, delivery scheduled for 2012.




�� Solar power order in the U.S.Solar power order in the U.S.�� EnergyEnergy--efficiency order in Russia. efficiency order in Russia. �� Food order in India. Food order in India.

Order for a Order for a process line to process line to a vegetable oil plant in India worth a vegetable oil plant in India worth

approximately SEK 65 million. Delivery is scheduled for 2012.approximately SEK 65 million. Delivery is scheduled for 2012.



approximately SEK 65 million. Delivery is scheduled for 2012.approximately SEK 65 million. Delivery is scheduled for 2012.


�� Solar power order in the U.S.Solar power order in the U.S.�� EnergyEnergy--efficiency order in Russia. efficiency order in Russia. �� Food order in India. Food order in India. �� Brewery order in Brazil. Brewery order in Brazil.



Solution to one of the world’s largest brewery groups worth approximately Solution to one of the world’s largest brewery groups worth approximately

SEK 135 million. Delivery is scheduled for 2011.SEK 135 million. Delivery is scheduled for 2011.

� Annual synergies expected to reach SEK 100 mln during latter part of 2013, of which 50 percent relates to cost synergies and 50 percent to sales synergies.

� Integration estimated to generate non-recurring costs of SEK 80 mln. These were booked in the second quarter.

� Aalborg added SEK 402 mln to orders, SEK 556 mln to

Aalborg Industries synergies/costAalborg Industries synergies/cost

www.alfalaval.com

� Aalborg added SEK 402 mln to orders, SEK 556 mln to sales and SEK 111 mln to EBITA in the quarter.

� Aalborg’s order intake was split 49% Marine & Diesel, 9% Process Industry, 36% Equipment Parts & Service and 6% Process Technology P&S.

InterimInterim reportreport Q2 2011Q2 2011







-- OutlookOutlook

Orders received by customer segmentOrders received by customer segmentProcess Technology Division Process Technology Division April April –– June 2011, June 2011, at constant ratesat constant rates

��Oil & Gas activity remained Oil & Gas activity remained high high

��Food lifted by brewery and Food lifted by brewery and vegetable oil investments vegetable oil investments in fast growing countries in fast growing countries

��Process industry had strong Process industry had strong growth across the linegrowth across the line

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

++++

++++

++++

www.alfalaval.com

Slide 14

© Alfa Laval

FoodFood

Parts & ServiceParts & Service

++++

++++

Orders received by customer segmentOrders received by customer segmentEquipment Division, Equipment Division, April April –– June 2011, June 2011, at constant ratesat constant rates

Marine & DieselMarine & Diesel

++++

++++

Industrial EquipmentIndustrial Equipment


�� Sanitary benefitted from Sanitary benefitted from demand situation in fastdemand situation in fast--growing economiesgrowing economies

�� Marine up on the back of the Marine up on the back of the contracting late last yearcontracting late last year

�� High utilization rates continued to High utilization rates continued to trigger demand for Parts & Servicetrigger demand for Parts & Service Parts & ServiceParts & Service++++

SanitarySanitary

OEMOEM

++++

++++

Orders received by customer segmentOrders received by customer segment


Marine & DieselMarine & Diesel

Process IndustryProcess Industry

Energy & EnvironmentEnergy & Environment

Jan Jan –– June 2011, June 2011, at constant ratesat constant rates

++++ ++++

++++

++++

++++

++++


SanitarySanitary

OEMOEMFoodFood

Parts & ServiceParts & Service++++

++++

++++

++++








-- OutlookOutlook

Orders received by RegionOrders received by Region

Asia Asia 34 34 %%

April April –– June 2011, June 2011, at constant ratesat constant rates

+64+64+32+32

+16+16

+44+44


Asia Asia 34 34 %%

+52+52

North America North America

� All segments reported growth

� The base business had a good

development

Highlights AmericasHighlights AmericasApril April –– June 2011, June 2011, at constant ratesat constant rates

+32+32


Latin Latin America America

�� Very strong development , boosted by Very strong development , boosted by

large orders booked in the quarterlarge orders booked in the quarter

�� Good growth in Food Technology and Good growth in Food Technology and


+52+52

Highlights EuropeHighlights Europe

Western Europe incl. NordicWestern Europe incl. Nordic

�� The base business had a very The base business had a very

good development good development

�� Industrial Equipment and Energy & Industrial Equipment and Energy &


+64+64

+16+16


�� Industrial Equipment and Energy & Industrial Equipment and Energy &

Environment performed the bestEnvironment performed the best

Central Central and Eastern Europe and Eastern Europe

�� Excellent development, for base Excellent development, for base

business and large orders alike business and large orders alike

�� Process Industry and Marine & Diesel Process Industry and Marine & Diesel

did particularly well as did Russia, did particularly well as did Russia,

Turkey and the Turkey and the BalticsBaltics

Highlights AsiaHighlights Asia

Asia Asia

�� Positive development was Positive development was

broad based, across most broad based, across most

segments and countriessegments and countries



segments and countriessegments and countries

�� Energy & Environment and Marine Energy & Environment and Marine

did particularly well did particularly well

�� Continued strong performance in Continued strong performance in

China and South East AsiaChina and South East Asia

Orders received by RegionOrders received by Region

Asia Asia 33 33 %%

Jan Jan –– June 2011, June 2011, at constant ratesat constant rates

+45+45+31+31

+19+19

+49+49


Asia Asia 33 33 %%

+51+51


Mr. Thomas ThuressonMr. Thomas ThuressonCFOCFOAlfa Laval GroupAlfa Laval Group






-- OutlookOutlook

HighlightsHighlights

Order intake Order intake

Net salesNet sales

7,4247,424

7,0337,033

SEK millionsSEK millions April April –– June 2011June 2011


Gross profit marginGross profit margin

40

50In percent of salesIn percent of sales

41.141.1

39.639.637.737.7

43.543.5

www.alfalaval.com© Alfa Laval

20

30

37.737.7

Q109Q109 Q309Q309 Q409Q409 Q110Q110 Q210Q210 Q310Q310 Q410Q410 Q111Q111 Q211Q211Q208Q208 Q308Q308 Q408Q408 Q209Q209

Gross Profit MarginGross Profit Margin-- analysis yearanalysis year--onon--year and sequentiallyyear and sequentially

Actual Actual

-- Foreign exchange, transactionForeign exchange, transaction

-- Changes in mixChanges in mix

Sub.totalSub.total::

33In percentIn percent

39.639.6

-- 0.60.6

-- 0.10.1

38.938.9

Q2 2010Q2 2010

-- Procurement (Procurement (negneg))

40.440.4

-- 0.10.1

--0.50.5

39.839.8

Q1 2011Q1 2011


ActualActual for Q2 2011:for Q2 2011: 41.141.1

-- Procurement (Procurement (negneg))

-- Productivity (pos)Productivity (pos)

-- Margin in order backlog (Margin in order backlog (negneg))

-- Price and volume (pos)Price and volume (pos)

41.141.1


Order intake Order intake Net salesNet salesAdjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin

Profit before taxProfit before tax


7,4247,424

7,0337,033

1,3351,335

19.0%19.0%

1,1751,175


Earnings per shareEarnings per share

EarningsEarnings

Earnings, excluding Earnings, excluding stepstep--upup

20112011

3.633.63

3.943.94

20102010

3.423.42

3.753.75

Jan Jan -- JuneJune20112011

1.921.92

2.112.11

20102010

1.971.97

1.621.62

April April –– June June



Order intake Order intake

Net salesNet sales

Adjusted EBITAAdjusted EBITA

Adjusted EBITAAdjusted EBITA--marginmargin



7,4247,424

7,0337,033

1,3351,335

19.0% 19.0%

1,1751,175



Cash flow from operating activitiesCash flow from operating activities

ROCEROCE

ROEROE

1,1751,175

1,4321,432

34.0%34.0%

24.1%24.1%

Cash flow fromCash flow from

-- operating activitiesoperating activities

-- investing activitiesinvesting activities

Financial Financial net paidnet paid

CashCash--flow statement flow statement

SEK millionsSEK millions

Jan Jan –– JuneJune

20112011

Jan Jan –– JuneJune

20102010

+1,870+1,870

-- 5,0595,059

+ 274+ 274

+1,899+1,899

-- 452452

-- 3636


TotalTotal

Pro Forma Pro Forma Free cashFree cash--flowflow****Incl. operating activities, capital expenditure and financial net paid.Incl. operating activities, capital expenditure and financial net paid.

1,9761,976 1,7281,728

--2,9152,915 1,4111,411

2Q Pro 2Q Pro Forma Forma Free cashFree cash--flow*flow* 1,4481,448 728728

Foreign exchangeForeign exchange

SEK millionSEK million

Translation effectTranslation effect

Transaction effectTransaction effect

TotalTotal

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

WY 11WY 11

-- 260260

--195195

--455455

WY WY 12*12*

--

--225225

--225225

1H 111H 11

--202202

--7272

--274274

Q2 11Q2 11

--145145

--4444

--189189


TotalTotal

*Based on EUR/USD 1.43 and EUR/SEK 9.00*Based on EUR/USD 1.43 and EUR/SEK 9.00

--455455 --225225--274274--189189

Projected FXProjected FX--effect for 2011 as communicated with the Q1 report effect for 2011 as communicated with the Q1 report SEK SEK --425 million 425 million

Order backlog as per June 30

SEK millionsSEK millions

10000

12000

14000

1600013,62413,624

5,3135,313 5,2115,211

3,6683,668

11,47211,472

14,54614,546


For delivery For delivery in 2011in 2011

0

2000

4000

6000

8000

For delivery For delivery later than 2011later than 2011

7,8047,8048,3118,311 9,3359,335

20092009 20102010 20112011

SalesSalesFull year Full year 20112011

SEK (SEK (blnbln))

Full year 2010Full year 2010 24.724.7

FXFX--translation translation -- 1.71.7

SubtotalSubtotal 23.023.0

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

www.alfalaval.com

Price ?Price ?Acquisitions (Acquisitions (inclincl OlmiOlmi) ) ++ 0.40.4

Aalborg (8 months as 2010) + 2.0Aalborg (8 months as 2010) + 2.0

Full year 2011Full year 2011



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





-- OutlookOutlook

Outlook for the third quarterOutlook for the third quarter

“We expect that demand during “We expect that demand during

the third quarter will be higher the third quarter will be higher


the third quarter will be higher the third quarter will be higher

than in the third quarter of 2010.” than in the third quarter of 2010.”


Documents

ReportReport for Q2 2011 for Q2 2011 - Alfa Laval · 2016. 10. 25. · Order for a Order for a process line to process line to a vegetable oil plant in India worth a vegetable oil