Alfa Laval (ALFA) CMD 2024 Presentation summary

Financial performance and growth

• Achieved strong profitable growth with organic capital sales up 9% (2017–2024 LTM) and 13% (2021–2024 LTM); service sales grew 15% (2021–2024 LTM).

• Adjusted EBITA margin reached 16.5% (2024 LTM), with net income at 10.2 BSEK and EPS at 16.67 SEK.

• Order backlog stands at 52 BSEK, with 15 BSEK for 2024 delivery and 37 BSEK for 2025 or later.

• Operating cash flow remains robust at 8.1 BSEK, net debt/EBITA at 0.61, and ROCE at 22.8%.

• Financial targets include 5% growth, 15% adj. EBITA, and 20% ROCE, all exceeded on a 3-year average.

Investment and strategic priorities

• Significant CAPEX program (2022–2027) with ~6.7 BSEK invested (2022–2024) and ~3.8 BSEK expected (2025–2027), focused on energy, food & water, and marine segments.

• Inorganic growth through portfolio expansion, digital services, and new energy solutions across all divisions.

• Four strategic decisions: invest in core market leadership, bet on future technologies, use M&A for capabilities, and prioritize service.

• Growth strategy structured around Evolve, Expand, and Explore, with respective growth of 25%, 47%, and 100% from 2022 to 2024.

• CAPEX allocation: 45% to Evolve, 50% to Expand, 5% to Explore.

Sustainability and climate targets

• Committed to Net Zero by 2050, with 60% reduction in Scope 1 & 2 emissions by 2025 and 100% by 2030; Scope 3 emissions to be reduced by 50% by 2030.

• Investments in solar panels and emission reduction at key sites (Broken Arrow, Suisio, Qingdao).

• Scope 1 & 2 Net Zero targeted for 2027.