Alfa Laval (ALFA) investor relations material

Executive summary

• Order intake was SEK 17.6 billion, down 1% year-over-year, but organic growth was 6.2%; performance in line with expectations.

• Net sales were SEK 15.9 billion, down 3.3% year-over-year, with 2% organic growth.

• Adjusted EBITA was SEK 2.9 billion, margin improved to 18.1% from 17.7% year-over-year.

• Continued rapid implementation of new operating model with limited financial impact; one-off costs of SEK 75 million.

• Dividend proposal of SEK 9.00 per share, up from SEK 8.50.

Financial highlights

• Adjusted gross profit was SEK 6,351 million, up from SEK 6,173 million year-over-year; gross margin rose to 39.9% from 37.5%.

• Operating income was SEK 2,713 million; EPS at SEK 4.59, down from SEK 4.82 year-over-year.

• Free cash flow before acquisitions at SEK 708 million.

• Net debt/EBITDA ratio at 0.96 (including leases); net debt including lease liabilities at SEK 13.6 billion.

• Book-to-bill ratio at 1.11; order book closed at SEK 48.7 billion.

Outlook and guidance

• Group demand expected to be higher in Q2 than Q1; Energy Division to remain at all-time high.

• CapEx guidance: SEK 0.6–0.8 billion next quarter, SEK 2.5–3 billion for the year; tax interval of 24%-26%.

• Macro-economic concerns persist, but short-term demand expected to remain robust.