2013 CMD Presentation by Lars Renström.Pdf 2016-10

Capital Markets Day 2013

Lars Renström President and CEO Alfa Laval Group

www.alfalaval.com Capital Markets Day 2013

November 19, 2013 in Lund 11:15 Business update and Q&A Lars Renström, Susanne Pahlen Åklundh, Svante Karlsson, Peter Leifland, Thomas Thuresson and Q&A Lunch 12:45 In the canteen 13:30 Theme “Energy efficiency” Introduction; Lars Renström Energy efficiency in Comfort; Claes Ericsson Compact heat exchangers - differentiation; Carina Resare Coffee break 14:45 Factory tour Energy efficiency in Process industry; Mats Skogman Energy efficiency in Power; Mats Skogman & Joakim Thölin Energy efficiency in Marine; Joakim Thölin Summary of CMD 2013 Lars Renström 17:00 Buses depart to Copenhagen & Sturup

www.alfalaval.com Strategic drive – Divisions Orders received, YTD 2013

Equipment Division Marine & Diesel Division Process Technology Division

“Marine and “Process “Component” Diesel Industry” Solution” Driven Driven Driven

32% 23% 45%

www.alfalaval.com Priorities per Division

Equipment Division Marine & Diesel Division Process Technology Division

• Multiple sales • Environment • Energy channels • Energy • Environment • E-commerce efficiency • Fast-growing • Service regions

www.alfalaval.com Regional development

CAGR 100% 2% 2% 2% 2% 1% 1% 1% 2% 1% 1% 2% 1% 2002 – 2013 Q3 90% Oceania 21% 23% 2,4 % 24% 27% 28% 27% 29% 30% 29% 80% 32% 29% 29% 2% 2% Asia 10,0 % 3% 70% 5% 4% 3% 3% 4% 3% 3% 3% 8% 5% 5% 5% 3% 4% 4% 9% 6% 6% 7% 8% 6% 7% 7% Middle East & Africa 14,0 % 60% 8% 7% 9% 8% 9% 8% 8% 8% 8% 8% 50% Latin America 11,2 % 19% 17% 16% 15% 18% 16% 40% 16% 15% 19% Central & Eastern % of total %of total ORLTM 18% 19% 19% 7,1% 30% Europe

30% 30% 30% 30% 28% 26% 25% 27% 22% 22% 22% North America 7,1% 20% 24%

10% Western Europe 4,3% 13% 13% 13% 10% 9% 10% 10% 10% 9% 9% 9% 10% 0% Nordic 4,3 %

SEK 14.7 Bn SEK 30.3 Bn

M€ 700

600

500

400

300

200

100

0 2005 2006 2007 2008 2009 2010 2011 2012 E2013

Multibrands 24%

Alfa Laval brand 76%

Slide 7 www.alfalaval.com Alfa Laval brand, US

Food 19% Oil & gas 14% Wastewater 11% Service 33%

www.alfalaval.com US food industry trends

Growing US population means a growth of demand Growth of ethnic population (Latin, Asian) – Ethnic food category growth Aging demographic – Population > 65 yrs: 43.1M in 2013 92M in 2060 Growth of heath conscious categories – Obesity consciousness / health • Low fructose • Sugar substitutes • Low sodium • Low fat

www.alfalaval.com Opportunities: Food

Alfa Laval is a strong player in the US food and beverage market – Broad portfolio of products – Application knowledge and expertise – Large installed base – Reputation for quality and reliability

www.alfalaval.com Opportunities: Oil and gas

Drilling Treatment Transportation

www.alfalaval.com Orders oil and gas - O&G order volumes Alfa Laval Group (M$)

160

140

120

100 Niagara Blower 80 ACE Vortex 60 Traditional O&G 40

0 2010 2011 2012 E2013

www.alfalaval.com Dewatering technology split

100% Decanters 90% Belt filter presses 80% Screw presses 70%

60%

50%

40%

30%

20%

10%

0% 0-10k 10-50k 50-100k 100-200k 200k + Population of municipality

Service Parts operation

www.alfalaval.com Service

Prime focus is to increase the market share on our own installed base Cover installed base – increase market share: - Take ownership in a more extensive and proactive way - Adding more sales and field service “feet on the street” Sell Service operations (man-hours) – increase share of service operations: - Brick-walling – growth opportunity - Develop competence and service products

Headcount development Sales development (MEUR) +54% 781 +77% 2 458 100% CAGR = 8.5% 439 1 592

100% 100%

2005 2012 2005 2012

*) Excluding Multi-brands More feet on the street!

Halmstad Humppila Aalborg Halmstad Aberdeen Vejen Tumba Moscow Edmonton Wakefield Lund Warsaw Edmonton Camberley Lodz Breda/Waalwijk Glinde Portland Scarborough Rotterdam Hildesheim Dayton Philadelphia Vienna Gimhae Carter Lake Nantes Guny Monza Beijing Newark Lyon / Fontanil Poseung Kobe Indianapolis Peoria Monza Shenyang Shonan Greenwood Chesapeake Madrid Genua Istanbul Jiangyin Fresno Tokai Farmersville Bristow Qatar Osaka Bakersfield Richmond Qingdau Clute Kunshan Chugoku Macon Dubai Shanghai Houston Houston Fort Lauderdale Yanbu Jubail Sharja Shenzhen Houston Houston Bangkok Kaoshiung Mexico City Quartero Dubai Baroda Thane Vizag Kuala Lumpur Singapore Sandakan Singapore Singapore Bintulu Medan Banjarmasin Pekanbaru Lima São Paulo São Paulo Townsville Macae Johannesburg Sydney Santiago Perth Buenos Aires Melbourne Hamilton

Name Country Strategy Business Sales M€

Vortex Systems US Product Supplier of mixing and blending equipment and solutions for the oil & gas industry 12 Ashbrook US Product Provider of belt filter presses, a complement and Simon-Hartley alternative to Alfa Laval’s decanter range in the 60 dewatering of municipal and industrial wastewater Gamajet Cleaning US Product Provider of tank cleaning equipment for the Systems industrial and sanitary markets in North America. 9 Air Cooled US Product Provider of air-cooled heat exchangers to the 40 Exchangers North American natural gas market. Snecma France Product Technology for a gas combustion unit. A safety equipment for Liquefied Natural Gas carriers. 5 Niagara Blower Co US Product Provider of air cooled heat exchangers to the North American oil and gas processing industries 40

TOTAL 166