Interim report Q203 - Alfa Laval report Q203 Mr. Sigge Haraldsson President and CEO Alfa Laval Group...
Transcript of Interim report Q203 - Alfa Laval report Q203 Mr. Sigge Haraldsson President and CEO Alfa Laval Group...
Interim report Q203
MrMr.. Sigge HaraldssonSigge HaraldssonPresident and CEOPresident and CEOAlfa Laval GroupAlfa Laval Group
Mr. Thomas ThuressonMr. Thomas ThuressonCFOCFOAlfa Laval GroupAlfa Laval Group
© Alfa Laval Slide 3 www.alfalaval.com
HighlightsHighlights
Order intake: Order intake: 3,554 MSEK3,554 MSEKNet sales: Net sales: 3,402 MSEK3,402 MSEK
Q203Q203
© Alfa Laval Slide 4 www.alfalaval.com
Q on Q vs. last year (excl FX)Q on Q vs. last year (excl FX)
-10
-8
-6
-4
-2
0
2
4
Q103 Q203 Jan-June 03
Orders receivedOrders received
-10
-8
-6
-4
-2
0
2
4
Q103 Q203 Jan-June 03
Net salesNet sales
© Alfa Laval Slide 5 www.alfalaval.com
HighlightsHighlights
Order intake: Order intake: 3,554 MSEK3,554 MSEKNet sales: Net sales: 3,402 MSEK3,402 MSEKAdjusted EBITA / margin: Adjusted EBITA / margin: 412 MSEK / 12.1 %412 MSEK / 12.1 %
Q203Q203
© Alfa Laval Slide 6 www.alfalaval.com
0
100
200
300
400
500
600
700
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
Q300Q300 Q400Q400 Q101Q101 Q201Q201 Q301Q301 Q401Q401 Q102Q102 Q202Q202 Q302Q302 Q402Q402 Q103Q103 Q203Q203
MSEK and in percent of salesMSEK 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 *Adjusted EBITA / margin *
© Alfa Laval Slide 7 www.alfalaval.com
HighlightsHighlights
Order intake: Order intake: 3,554 MSEK3,554 MSEKNet sales: Net sales: 3,402 MSEK3,402 MSEKAdjusted EBITA / margin: Adjusted EBITA / margin: 412 MSEK / 12.1 %412 MSEK / 12.1 %Profit before tax: Profit before tax: 214 MSEK214 MSEK
Q203Q203
© Alfa Laval Slide 8 www.alfalaval.com
HighlightsHighlights
Order intake: Order intake: 3,554 MSEK3,554 MSEKNet sales: Net sales: 3,402 MSEK3,402 MSEKAdjusted EBITA / margin: Adjusted EBITA / margin: 412 MSEK / 12.1 %412 MSEK / 12.1 %Profit before tax: Profit before tax: 214 MSEK214 MSEK
Adjusted EBITA / margin: Adjusted EBITA / margin: 734 MSEK / 11.5 %734 MSEK / 11.5 %
Q203Q203
H103H103
© Alfa Laval Slide 9 www.alfalaval.com
20032002
412445
Q2Q2
807
734
MSEKMSEK H1H1
Deviation - 33
FX. translation 28
FX. transaction 35
Deviation excl FX + 30
- 73
60
55
+ 42
Adjusted EBITA Adjusted EBITA
© Alfa Laval Slide 10 www.alfalaval.com
HighlightsHighlights
Order intake: Order intake: 3,554 MSEK3,554 MSEKNet sales: Net sales: 3,402 MSEK3,402 MSEKAdjusted EBITA / margin: Adjusted EBITA / margin: 412 MSEK / 12.1 %412 MSEK / 12.1 %Profit before tax: Profit before tax: 214 MSEK214 MSEK
Adjusted EBITA / margin: Adjusted EBITA / margin: 734 MSEK / 11.5 %734 MSEK / 11.5 %
Q203Q203
H103H103Profit before tax: Profit before tax: 355 MSEK 355 MSEK Cash flow from operating activities: Cash flow from operating activities: 650 MSEK 650 MSEK ROCE: ROCE: 20.9 %20.9 %
© Alfa Laval Slide 11 www.alfalaval.com
Orders Received by Segment
Comfort & RefrigerationComfort & Refrigeration
SanitarySanitary
Marine & DieselMarine & Diesel
Fluids & UtilityFluids & Utility
OEMOEM
Parts & ServiceParts & Service
Life ScienceLife Science
Process IndustryProcess Industry
Energy & EnvironmentEnergy & Environment
FoodFood
+
+
−
+
−
−
−
+
+
=
January – June 2003
© Alfa Laval Slide 12 www.alfalaval.com
Orders Received by RegionOrders Received by Region
Cen
trC
entr.
& E
ast
8 %
. & E
ast
8 %
North A
merica
18 %
North A
merica
18 %
Asia 24 %
Asia 24 %
L. America 4 %
L. America 4 %
Other 2 %
Other 2 %
Western EuropeWestern Europe31 %31 %
Nordic 13 %
Nordic 13 %
++
++++
---- --
--
January – June 2003
© Alfa Laval Slide 13 www.alfalaval.com
HighlightsHighlights
Order intake: Order intake: 3,554 MSEK3,554 MSEKNet sales: Net sales: 3,402 MSEK3,402 MSEKAdjusted EBITA / margin: Adjusted EBITA / margin: 412 MSEK / 12.1 %412 MSEK / 12.1 %Profit before tax: Profit before tax: 214 MSEK214 MSEK
Adjusted EBITA / margin: Adjusted EBITA / margin: 734 MSEK / 11.5 %734 MSEK / 11.5 %Profit before tax: Profit before tax: 355 MSEK 355 MSEK Cash flow from operating activities: Cash flow from operating activities: 650 MSEK 650 MSEK ROCE: ROCE: 20.9 % 20.9 %
AsbestosAsbestos--related lawsuits in the United Statesrelated lawsuits in the United States
Q203Q203
H103H103
© Alfa Laval Slide 14 www.alfalaval.com
AsbestosAsbestos--related lawsuits in the USrelated lawsuits in the USAlfa Laval Inc. was as of June 30, 2003 named coAlfa Laval Inc. was as of June 30, 2003 named co--defendant in a defendant in a total of 109 asbestostotal of 109 asbestos--related lawsuits with a total of approximately related lawsuits with a total of approximately 20 200 plaintiffs. The lawsuits filed in Mississippi account for20 200 plaintiffs. The lawsuits filed in Mississippi account forapproximately 99% of all plaintiffs.approximately 99% of all plaintiffs.
Developments between March 31 and June 30, 2003Developments between March 31 and June 30, 2003::-- 15 lawsuits have been resolved during the period, which gives a15 lawsuits have been resolved during the period, which gives a
grand total of 52 lawsuits that have been resolved;grand total of 52 lawsuits that have been resolved;
-- 27 additional lawsuits with a total of approximately 2 700 plai27 additional lawsuits with a total of approximately 2 700 plaintiffs.ntiffs.
Alfa Laval continues to believe:Alfa Laval continues to believe:-- that claims and defense costs against Alfa Laval Inc. will be cthat claims and defense costs against Alfa Laval Inc. will be coveredovered
by insurance policies;by insurance policies;-- that these lawsuits will not have a material adverse effect on that these lawsuits will not have a material adverse effect on thethe
company’s financial condition or result of operation.company’s financial condition or result of operation.
© Alfa Laval Slide 15 www.alfalaval.com
Consolidated Profit and LossConsolidated Profit and Loss1.11.1--30.630.6 1.11.1--30.630.6
MSEKMSEK 20032003 20022002
Net salesNet sales 6,3976,397 6,9166,916Adjusted EBITAAdjusted EBITA 734734 807807Amortization of goodwill and stepAmortization of goodwill and step--upup -- 246246 -- 252252Financial net Financial net -- 137137 -- 399399Comparison distortion itemsComparison distortion items ++ 44 -- 349349PBTPBT 355355 -- 193193
© Alfa Laval Slide 16 www.alfalaval.com
Gross Profit MarginGross Profit Margin
20
30
40
50In percent of salesIn percent of sales
Q300Q300 Q400Q400 Q101Q101 Q201Q201 Q301Q301 Q102Q102Q401Q401 Q202Q202 Q302Q302 Q402Q402
38.7%38.7%3366.7%.7% 39.6%39.6%
Q103Q103
3344..00%%
Q203Q203
© Alfa Laval Slide 17 www.alfalaval.com
>850825
““Beyond ExpectationsBeyond Expectations””
Other ProjectsOther Projects
BOM & NPRBOM & NPR
Org. reOrg. re--designdesign
Shared ServicesShared Services
ManufacturingManufacturing””TargetTarget”” ””Current paceCurrent pace””
In the P&L, MSEK 725 In the P&L, MSEK 725
© Alfa Laval Slide 18 www.alfalaval.com
7500
8000
8500
9000
9500
Number of employeesNumber of employees
9,3999,399 9,1509,150Acquisitions Acquisitions + 166+ 166Closure Kenosha Closure Kenosha -- 124124Other reductions Other reductions -- 291291
30 June, 2002 30 June, 2003
© Alfa Laval Slide 19 www.alfalaval.com
Foreign exchangeForeign exchange
MSEKMSEK
Translation effectTranslation effectTransaction effectTransaction effect
TotalTotal
Adjusted EBITAAdjusted EBITA
-- 6060-- 5555
-- 115115
Impact from Impact from FxFx. fluctuations in H1 2003 over H1 2002. fluctuations in H1 2003 over H1 2002
Profit Before TaxProfit Before Tax
-- 5050-- 5555
-- 105105
© Alfa Laval Slide 20 www.alfalaval.com
Foreign exchangeForeign exchange
MSEKMSEK
Translation effectTranslation effectTransaction effectTransaction effect
TotalTotal
Based on market exchange rates as per June 30, 2003Based on market exchange rates as per June 30, 2003
Adjusted EBITAAdjusted EBITA
-- 9090-- 140140-- 230230
Estimated impact from Estimated impact from FxFx. fluctuations in 2003 vs. 2002. fluctuations in 2003 vs. 2002
Profit Before TaxProfit Before Tax
-- 6565-- 140140-- 205205
© Alfa Laval Slide 21 www.alfalaval.com
MSEKMSEK H1 2003H1 2003 H1 2002H1 2002
Cash flows fromCash flows from-- operating activitiesoperating activities 650650 937937-- investing activitiesinvesting activities -- 5252 -- 486486
Financial Financial net paidnet paid --147 147 -- 728728
TotalTotal 451 451 --277277
Pro Forma FreePro Forma Free--cashcash--flow* 470flow* 470 521521
*Excl acquisitions, disposals, debt repayments and dividends*Excl acquisitions, disposals, debt repayments and dividends
CashCash--flow Statementflow Statement
© Alfa Laval Slide 22 www.alfalaval.com
Financial standardsFinancial standards
TargetTarget H103H103 H102H102 20022002
Net DebtNet Debt / Equity/ Equity < 1.0 < 1.0 0.690.69 1.021.02 0.780.78
CashCash--flowflow from from 10 10 ––14 14 10.2 10.2 13.513.5 13.213.2operating operating activitiesactivities* *
Capital Capital expenditureexpenditure* * apprappr. 2.5. 2.5 1.41.4 2.22.2 1.91.9
* In * In percentpercent of of salessales
© Alfa Laval Slide 23 www.alfalaval.com
Key ratios, per shareKey ratios, per share
H1 2003H1 2003 H1 2002H1 2002 20022002
CashCash--flowflow fromfromoperating operating activitiesactivities* * 5.825.82 8.398.39 17.2317.23
EarningsEarnings 2.442.44 -- 5.455.45 1.411.41
**Based Based on the on the current number current number of of sharesshares
© Alfa Laval Slide 24 www.alfalaval.com
Outlook 2003Outlook 2003
“Order intake will show a limited increase “Order intake will show a limited increase during the year. Additional savings initiatives during the year. Additional savings initiatives will reduce the impact from foreign exchange will reduce the impact from foreign exchange exposures. Profit before tax will show a exposures. Profit before tax will show a major improvement.”major improvement.”
© Alfa Laval Slide 26 www.alfalaval.com
Calendar and contact informationCalendar and contact information
September 16September 16 Capital Market Day, CopenhagenCapital Market Day, CopenhagenOctober 28October 28 Q3 report 2003Q3 report 2003February 16, 2004February 16, 2004 Q4 report 2003Q4 report 2003
Investor Relations contactInvestor Relations contact Tel:Tel: +46 46 36 74 82+46 46 36 74 82Mikael SjöblomMikael Sjöblom Mob:Mob: +46 709 78 74 82+46 709 78 74 82
ee--mail: mail: mikaelmikael..sjoblomsjoblom@@alfalavalalfalaval.com.com