Food & Water Division

Nish Patel

Alfa Laval Group

www.alfalaval.com

Capital sales

Service

High Speed Sep.

Decanters

Fluid Handling

Food Heat Transfer

Food Systems

Food

Beverages

Pharma

Water

Food & Water Division by numbers- Order intake (OI) based on LTM September 30, 2018,

OI by Business units OI by industrySplit by type of orders

*) Compared with WY 2017, fixed rates

Order intake:

SEK Bn 13.3 (+5%*)Sales:

SEK Bn 13.0 (+7%*)

Safety &

quality

Healthy &

affordable

Changing

consumer

behaviour

Environmental

& resource

efficiency

Market drivers and trends

Billion USD, 2017 CAGR %, 2017-2021

Beverage

Food

Beverage

Food

5,2%5,8%

88%

12%6300

4000

2000

0

Food, Dairy & Beverage

Source: Euromonitor (2018)

Food and beverage market Market drivers and trends

www.alfalaval.com

Urbanization Aging

population –

high-cost

healthcare

Environmental

regulations Growing

middle

class

2022 2017

Western Europe

North America

Latin America

Eastern Europe

Australasia

Asia Pacific

Middle East and

Africa

100 200 300 400 500 600 700 800 900

4,1%

7,7%

3,1%

8,8%

2,4%

5,7%

7,7%

www.alfalaval.com

Biotech & Pharmaceuticals

Source: Frost & Sullivan

Production turnover 2017 & forecast 2020,

EurBn (CAGR% 2017-2022)

Market drivers and trends

Market drivers and trends

Water

Scarcity

Environmental

Legislation

Urbanization Ageing

infrastructure

www.alfalaval.com

Water and Wastewater

Source: Frost & Sullivan

Water and waste treatment equipment market

Billion Euro, 2015 CAGR %, 2015-2020

60

40

20

0

42%

58%

56

9,1%8,0%

9,9%

Industrial

Municipal

Industrial

Municipal

Total

Market drivers and trends

www.alfalaval.com

Decanters

Valves

High Speed Separators

Scraped Surface

Heat Exchangers

Membranes

Systems

Gasketed Heat Exchangers

Spiral Heat Exchangers

Welded Heat Exchangers Brazed Heat Exchangers

Fusion Bonded

Heat Exchangers

Pumps Tank Equipment

Installations material

Automation solutions

High speed separators

Decanters

Food systems

Hygienic fluid handling

Food heat transfer

Innovation- Food & Water Division

15 40

Product launches LTM Product launches NTM

www.alfalaval.com

Food & Beverages

Brewery

Dairy

Edible oil

Pharma & Bio

Protein

Sugar, Starch, Ethanol

Water & Waste Treatment

Industry focus…- What does this mean in the Food & Water Division

Food and Beverage case- Food & Water Division

www.alfalaval.com

Natural product without preservatives

Increases shelf lifetime with pasteurization

Increases production capacity

with 25-30% through Contherm

system and continuous optimization

Alfa Laval Contherm

Sustainability enabler

• Optimize resource use

& increase yield

• Energy savings

www.alfalaval.com

Innovation

Contherm

Food and Beverage case- Food & Water Division

25%

power savings

25-30%

increasedcapacity

Waste water case story- Food & Water Division

Sustainability enabler

• Water treatment and re-use

• Energy savings

www.alfalaval.com

Innovation

Decanter MBR

50%

energyreduction

Up to

20%

energyreduction

Up to

25%

polymerreduction

Brewery case story- Food & Water Division

Sustainability enabler

• Energy efficiency

• Optimize resource use

& Increase yield

www.alfalaval.com

Innovation

Brew 701 eMotion

Flexitherm

40%

energyreduction

Up to

94%

heat recovery

In summary…- Food & Water Division

Food & Water outlook positive

High pace of innovation

Customer experience

Sustainability enabler

• Optimize resource use & increase yield

• Water re-use

• Energy Savings

www.alfalaval.com