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www.alfalaval.com

2 | www.alfalaval.com06/12/2019 | © Alfa Laval

www.alfalaval.com

− MSEK

Our growth story in four phases

3 |

20

15

30

Phase 1: ”Creating the base”

Order intake: 15-20 BnSEK

Adjusted EBITA: 2 BnSEK

Phase 2: ”Super cycle”


Adjusted EBITA: 3-6 BnSEK

Phase 3: ”Aquired growth”


Adjusted EBITA: 5-6 BnSEK

Phase 4: ”Organic growth”

Order intake: 35- BnSEK

Adjusted EBITA: 6- BnSEK

2006 2011 20172001

35

LTM 2019-09

45

06/12/2019 | © Alfa Laval

www.alfalaval.com

Decanter

CAGR

2009-16: 2.9%

2016-19: 8.3%

− 10 years organic growth, MSEK at fixed rates

Growth in core products

Separators

CAGR

2009-16: 0.6%

2016-19: 4.3%

Brazed HEX

CAGR

2009-16: 5.0%

2016-19: 8.1%

Plate HEX

CAGR

2009-16: 1.6%

2016-19: 5.6%

Fluid Handling

CAGR

2009-16: 5.8%

2016-19: 2.6%

4 | 06/12/2019 | © Alfa Laval

www.alfalaval.com

− MSEK millions, total order intake fixed rates

Growth of the Service business

06/12/2019 | © Alfa Laval 5 |

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

www.alfalaval.com

New technology and processes in service centres− Major cost and lead time reduction by high level of automation and process improvement

06/12/2019 | © Alfa Laval 6 |

• Automated cleaning process and

automated crack detection test

• Zero discharge water

• Factory setup using 5S and LEAN

www.alfalaval.com

− Number of employees in Service operation; field service and service centres

100+ Service centers

06/12/2019 | © Alfa Laval 7 |

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

www.alfalaval.com

• Three time zones

• About 250 dedicated service engineers

• 714 ship visits have been executed

• 85% completed ship visits first harbor

• Top countries with ship visits;

Singapore, China, Netherland, USA and

United Arab Emirates

− 18 months experience

Case; International Marine Service (IMS)

06/12/2019 | © Alfa Laval 8 |

Remote technical support cases

during last 18 months

www.alfalaval.com

• PureSOx Compliance Service

package including Connectivity with

Compliance Service package and 24/7

availability through IMS

• Customer benefits:

- Compliance insurance and reduced

risk for downtime

- Saves operational cost and provides

plannable costs and predictable

operations

− Alfa Laval PureSOx Connectivity & Service

Connected solutions

06/12/2019 | © Alfa Laval 9 |

www.alfalaval.com

• 3 year agreement

• 42 machines, 4 plants

• Preventive maintenance

• Connectivity solutions installed

− Service agreement

Case: fish processing case from Peru

06/12/2019 | © Alfa Laval 10 |

www.alfalaval.com

• About 400 connected products today

• Ambition to have close to 2000 end of

2020

• Customer are asking for connectivity

enabled products

• Connecting our equipment becomes

normal – for us and for our customers

− Hours of data collected by Alfa Laval gateways

Fast development and acceptance

06/12/2019 | © Alfa Laval 11 |

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

Q1 2017

Q2 2018

Q1 2019

Q3 2019

Hours of data collected

www.alfalaval.com

Separators

Welded HEX

Driving product competence− Achievements since January 2017

6,205Hours of product specialist training so far 2019

Decanters

Plate HEX

Certified product specialists in Sales Companies

06/12/2019 | © Alfa Laval

www.alfalaval.com

Growing distributor sales− Distribution network

China: 175 authorized distributors, with 420 sales engineers focused on Alfa Laval products.

Located in 28 provinces

06/12/2019 | © Alfa Laval

www.alfalaval.com

− Reach October 2019

Alfa Laval Online Dashboard

06/12/2019 | © Alfa Laval

Online/e-Business order intake (MSEK)

15 | www.alfalaval.com

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2012 2013 2014 2015 2016 2017 2018 2019LTM

06/12/2019 | © Alfa Laval

• Tools for Distributors

• Online shop in the US, Australia

and New Zealand

• Through Alibaba in China

www.alfalaval.com

0

500

1000

1500

2000

2500

3000

− KSEK, average number of employees

Increased net sales per employee

06/12/2019 | © Alfa Laval 16 |

This slide has been updated after the Capital Markets Day 2019


The day after tomorrow…

06/12/2019 | © Alfa Laval

www.alfalaval.com

Opportunities in the Marine environmental

Alfa Laval PureSOx

Water Cleaning System

06/12/2019 | © Alfa Laval 18 |

Alfa Laval PureBilge Alfa Laval PureNOx

www.alfalaval.com06/12/2019 | © Alfa Laval 20 |

Profitability− SEK millions (rolling 12 months)

7,7

8,4

9,1 9,2 9,28,8

6,2

5,5 5,2

4,2

6,0

7,1

7,7

9,3

10,210,8

11,2

11,9

12,8

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

0

1 000

2 000

3 000

4 000

5 000

6 000

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2019Q1

2019Q2

2019Q3

Net income for the period

Earnings per share

www.alfalaval.com| © Alfa Laval 21 |06/12/2019

Summary reflections

• The platform for continued organic growth is improved- Product competitiveness gradually increasing

• New business opportunities drive R&D investments- Protein, new energy landscape, new marine environmental applications

• Portfolio volatility with limited downside- Up-stream O&G less than 5% of O/I

- Marine contracting already at low levels

• CAPEX will start to normalize, after a significant investment period- CAPEX trending lower

- Working capital at elevated level

www.alfalaval.com06/12/2019 | © Alfa Laval 22 |

Financial goals

15%EBITA*

20%ROCE

5%Growth*

*) Measured over a business cycle

− November 25, Kolding, Denmark

Capital Markets Day, 2020


www.alfalaval.com

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