Capital Markets Day 2011Capital Markets Day 2011
www.alfalaval.com
Lars RenströmLars RenströmPresident and CEOPresident and CEO
Alfa Laval GroupAlfa Laval Group
November 22, 2011 in CopenhagenNovember 22, 2011 in Copenhagen
10:3010:30 Business update and Q&ABusiness update and Q&ALars Lars RenströmRenström, , SvanteSvante KarlssonKarlsson, Susanne , Susanne PahlenPahlen ÅklundhÅklundh, Peter , Peter LeiflandLeiflandand Q&A and Q&A
13:00 13:00 Innovative technologies; 3 parallel sessions and 5 topicsInnovative technologies; 3 parallel sessions and 5 topics-- The Aalborg product range (The Aalborg product range (SameerSameer KalraKalra))
LunchLunch
Capital Markets Day Capital Markets Day 2011 2011
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-- The Aalborg product range (The Aalborg product range (SameerSameer KalraKalra))-- Fluid Handling (Fluid Handling (BjarneBjarne SøndergaardSøndergaard))-- Marine & Diesel (Marine & Diesel (JoakimJoakim ThölinThölin))-- Oil & GasOil & Gas ((Sammy Sammy HulpiauHulpiau))-- Refinery (Mats Refinery (Mats SkogmanSkogman))
15:4515:45 Financial updateFinancial updateThomas Thomas ThuressonThuresson
16:15 16:15 Q&A and closing remarksQ&A and closing remarksLars Lars RenströmRenström
“Marine and Diesel Industry”
“Process Solution” “Component”
New divisionNew division
Strategic drive Strategic drive –– Divisions Divisions Process Technology DivisionMarine & Diesel DivisionEquipment Division
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Diesel Industry” Driven
“Process Solution” Driven
“Component” Driven
26%26%31%31% 43%43%
New divisionNew division
Strategic drive Strategic drive –– Divisions Divisions
“Process Solution”
“Marine and Diesel Industry” “Component”
Process Technology DivisionMarine & Diesel DivisionEquipment Division
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“Process Solution” Driven
Product solutions, Systems/Modules,
Process lines
Diesel Industry” DrivenProducts
Customised systems, Modules,
Service solutions
“Component” Driven
Sales Channels, e-Business,
OEM
Focus on customer segmentsFocus on customer segmentsOrders received January Orders received January –– September September 2011, Pro2011, Pro--formaforma
Industrial EquipmentIndustrial EquipmentIndustrial EquipmentIndustrial Equipment
OEMOEMOEMOEM
Sanitary EquipmentSanitary EquipmentSanitary EquipmentSanitary Equipment
PTD Parts PTD Parts & Service& ServicePTD Parts PTD Parts & Service& Service
Process IndustryProcess IndustryProcess IndustryProcess Industry
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EQD Parts EQD Parts & Service& ServiceEQD Parts EQD Parts & Service& Service
Marine & Diesel Marine & Diesel EquipmentEquipmentMarine & Diesel Marine & Diesel EquipmentEquipment
Marine & Offshore Marine & Offshore SystemsSystemsMarine & Offshore Marine & Offshore SystemsSystems
MDD Parts MDD Parts & Service& ServiceMDD Parts MDD Parts & Service& Service
Food TechnologyFood TechnologyFood TechnologyFood Technology
Energy & EnvironmentEnergy & EnvironmentEnergy & EnvironmentEnergy & Environment
Equipment DivisionEquipment DivisionEquipment DivisionEquipment Division
Marine & Diesel DivisionMarine & Diesel DivisionMarine & Diesel DivisionMarine & Diesel Division
Process Technology DivisionProcess Technology DivisionProcess Technology DivisionProcess Technology Division
Marine &Marine &OffshoreOffshoreSystemsSystems
Marine &Marine &OffshoreOffshoreSystemsSystemsParts & ServiceParts & ServiceParts & ServiceParts & Service
Marine &Marine &OffshoreOffshoreSystemsSystems
Marine &Marine &OffshoreOffshoreSystemsSystemsParts & ServiceParts & ServiceParts & ServiceParts & Service
Marine & Diesel DivisionMarine & Diesel Division
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Marine & Diesel Marine & Diesel EquipmentEquipmentMarine & Diesel Marine & Diesel EquipmentEquipmentMarine Marine EquipmentEquipmentMarine Marine EquipmentEquipment
Diesel Diesel EquipmentEquipmentDiesel Diesel EquipmentEquipment
Orders received January Orders received January –– September September 20112011SEK 5,873 million*SEK 5,873 million*
*) Pro*) Pro--formaforma
Group ManagementGroup Management
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Nish PatelNish PatelExecutive Vice PresidentWestern Europe and North AmericaWestern Europe and North America
Nish PatelNish PatelExecutive Vice PresidentWestern Europe and North AmericaWestern Europe and North America
Peter LeiflandPeter LeiflandExecutive Vice PresidentMarine & Diesel Division Marine & Diesel Division
Peter LeiflandPeter LeiflandExecutive Vice PresidentMarine & Diesel Division Marine & Diesel Division
GrowthGrowth
Growth target: At least
per annum over a business cycle,
including acquisitions of small and
8%
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including acquisitions of small and
medium-sized companies.
Structural Structural growthgrowth
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Strong presence in fast-growing markets
Asia, Latin America andCentral & Eastern EuropeAsia, Latin America and
Central & Eastern EuropeWestern Europe and
North AmericaWestern Europe and
North America
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Top 10 marketsTop 10 marketsOrder intake 2011 YTDOrder intake 2011 YTD
Korea, South
Mid Europe
Nordic
China
United States
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0 1000 2000 3000 4000
Japan
Brazil
Adriatic
Russia
India
SEK at prevailing rates
Investments in fastInvestments in fast--growing marketsgrowing markets
�� Capacity Capacity China and IndiaChina and India
�� Wider product offering Wider product offering ChinaChina, India, Brazil and Russia, India, Brazil and Russia
e.g. Air HEX, decanters, large GPHEe.g. Air HEX, decanters, large GPHE
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e.g. Air HEX, decanters, large GPHEe.g. Air HEX, decanters, large GPHE
�� Sales presence Sales presence China and IndiaChina and India
�� Service presenceService presence
PRICE
Premium functionalityPremium performancePremium designPremium price
BB
P
Product differentiationProduct differentiation
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PERFORMANCE
Premium priceAlfa Laval quality
Basic functionalityBasic performanceBasic designBasic priceAlfa Laval quality
BB
Clear differentiation will avoid cannibalization
Case: Pumps in China
Premium range
Premium range variant
Basic range
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2006 2007 2008 2009 2010
AcquisitionsAcquisitions
� Creating an acquisition culture
� Bolt-on acquisitions adding 3-4% annual sales growth
� Major acquisitions like Aalborg come on top of that
� In last five years Alfa Laval has made 30 acquisitions adding MEUR 885 (BnSEK 8,4) in sales
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adding MEUR 885 (BnSEK 8,4) in sales
� About 10% of Group sales will come long-term from multi-brands (12% in 2010)
Alfa Laval multi branding strategyAlfa Laval multi branding strategyHigh enough profit margin to justify multi brands
WhenTiTi
GivenHigh Market Shares
AABB
YESYESAA
BBNONO
Mature products
YESYES
NONO
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Channel Positioning
Performance
Price
How
Product differentiation Tier1
ier
2
ier
3
5 years = from 15 years = from 1 to 12%to 12%
Track recordTrack record
www.alfalaval.com*) *) DagensDagens IndustriIndustri, November 7, 2011, November 7, 2011
HighlightsHighlights
�New Marine & Diesel Division
�Structural growth
�Fast-growing markets
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�Product differentiation for growth
�Acquisition for value creation
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