Report for Q4 2014 - Alfa Laval · 2016-10-25 · Report for Q4 2014 Mr. Lars Renström President...
Transcript of Report for Q4 2014 - Alfa Laval · 2016-10-25 · Report for Q4 2014 Mr. Lars Renström President...
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
www.alfalaval.com© Alfa Laval Slide 4
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
- Orders received and margins
- Highlights
- Development per segment
- Geographical development
- 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%
www.alfalaval.com© Alfa Laval Slide 8
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
www.alfalaval.com© Alfa Laval Slide 9
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
Report for Q4 2014- Key figures
- Orders received and margins
- Highlights
- Development per segment
- Geographical development
- 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.
Value: SEK 115 million
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.
Value: SEK 75 million
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
- Orders received and margins
- Development per segment
- Geographical development
- Financials
- Outlook
www.alfalaval.com
Orders received by customer segment
© Alfa Laval Slide 13
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%
+ =
= +
- +
- -
Year-on-year comparison
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
Marine & Diesel division
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.
+
+ +
= -
Year-on-year comparison
Sequential comparison
Highlights and sequential comments
Marine & Diesel
Equipment
7%*
Marine &
Offshore Systems
7%*
Service
10%*
*Share of Group total
+
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
Process Technology division
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%*
- -
- =
- +
+ +
Year-on-year comparison
Sequential comparison
Highlights and sequential comments
Energy &
Process 18%*
Food & Life
Science 8%*
Water & Waste
Treatment 2%*
*Share of Group total
www.alfalaval.com
Orders received by customer segment
© Alfa Laval Slide 17
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
Marine & Diesel division
Process Technology division
Year-on-year comparison
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
Report for Q4 2014- Key figures
- Orders received and margins
- Highlights
- Development per segment
- Geographical development
- 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%
Year-on-year comparison
+5
+58
+8
-4
-4
+23
Oct – Dec 2014, development at constant rates
www.alfalaval.com© Alfa Laval
Highlights Asia
Year-on-year comparison
Sequential comparison
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
www.alfalaval.com© Alfa Laval
Highlights Europe
Year-on-year comparison
Sequential comparison
Oct – Dec 2014, at constant rates, sequential comments
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.
www.alfalaval.com© Alfa Laval
Highlights Americas
Year-on-year comparison
Sequential comparison
+8 -15
-4 +24
+8 -15
-4 +24
Oct – Dec 2014, at constant rates, sequential comments
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.
www.alfalaval.com© Alfa Laval
Orders received by Region
Central & Eastern Europe 7%
North America 19%
Asia 38%
Latin America 5%
Western Europe 21%
Nordic 8%
Year-on-year comparison
-2
+41
+18
-5
-2
+11
January – December 2014, development at constant rates
www.alfalaval.com© Alfa Laval Slide 24
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
- Orders received and margins
- Highlights
- Development per segment
- Geographical development
- Financials
- Outlook
www.alfalaval.com© Alfa Laval Slide 26
Highlights
Order intake
Net sales
SEK millions Oct – Dec 2014
10,509
10,775
www.alfalaval.com© Alfa Laval
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
www.alfalaval.com© Alfa Laval Slide 28
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
- - -
www.alfalaval.com© Alfa Laval Slide 29
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
© Alfa Laval Slide 30
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
www.alfalaval.com© Alfa Laval Slide 31
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
www.alfalaval.com© Alfa Laval Slide 32
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
www.alfalaval.com© Alfa Laval Slide 33
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
- Orders received and margins
- Highlights
- Development per segment
- Geographical development
- Financials
- Outlook
www.alfalaval.com© Alfa Laval Slide 36
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© Alfa Laval Slide 37
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.
© Alfa Laval Slide 38