Definitions
Net sales
Revenues from goods sold and services performed that are part of the ordinary operations of the Group, after deduction for given discounts, value added tax and other tax directly linked to the sales.
Comparison distortion items
Items that do not have any link to the normal operations of the Group or that are of a non-recurring nature, where a reporting together with other items in the income statement would have given a comparison distortion effect that would have made it difficult to judge the development of the ordinary operations for an outside viewer.
Orders received
Incoming orders during the year, calculated in the same way as net sales. The orders received give an indication of the current demand for the Group’s products and services, that with a varying delay appear in net sales.
Order backlog at year-end
Incoming orders that not yet have been invoiced. The order backlog at the end of the year is equal to the sum of the order backlog at the beginning of the year plus the orders received during the year less the net sales for the year. It gives an indication of how the net sales can be expected to develop in the future.
EBITA
“Earnings Before Interest, Taxes and Amortisation” or operating income before amortisation of goodwill and other step-up values. This measure of result is fully comparable over time independent of the financing costs and the amortisation of goodwill and other step-up values that from time to time burden the Group.
EBITDA
“Earnings Before Interest, Taxes, Depreciation and Amortisation” or operating income before depreciation and amortisation of goodwill and other step-up values. This measure of result is fully comparable over time independent of the financing costs and the amortisation of goodwill and other step-up values that from time to time burden the Group.”
EBITA-margin %
Operating income before amortisation of goodwill and other step-up values (EBITA) in relation to net sales, expressed in percent.
EBITDA-margin %
Operating income before depreciation and amortisation of goodwill and other step-up values (EBITDA) in relation to net sales, expressed in percent.
Adjusted EBITA
Same as EBITA, but adjusted for comparison distortion items.
Adjusted EBITDA
Same as EBITDA, but adjusted for comparison distortion items.
Adjusted EBITA-margin %
Same as EBITA-margin, but adjusted for comparison distortion items.
Adjusted EBITDA-margin %
Same as EBITDA-margin, but adjusted for comparison distortion items.
Profit margin %
Result after financial items in relation to net sales, expressed in percent.
Capital turnover rate, times
Net sales in relation to average capital employed, expressed as a multiple of capital employed. Shown excluding and including goodwill and step-up values and the corresponding deferred tax liability.
Capital employed
Total assets less liquid funds, capitalised financing costs, other long-term securities, accrued interest income, operating liabilities and other non-interest bearing liabilities, including tax and deferred tax, but excluding accrued interest costs. Shown excluding and including goodwill and step-up values and the corresponding deferred tax liability. Shows the capital that is used in the operations. The capital employed for the Group differs from the net capital for the segments concerning taxes, deferred taxes and pensions.
Return on capital employed %
EBITA in relation to average capital employed, expressed in percent. Shown excluding and including goodwill and step-up values and the corresponding deferred tax liability.
Return on equity capital %
Net income for the year in relation to equity capital, expressed in percent.
Solidity %
Equity capital in relation to total assets, expressed in percent.
Net debt
Interest-bearing liabilities including interest-bearing pension liabilities and capitalised finance leases less liquid funds.
Net debt to EBITDA, times
Net debt in relation to EBITDA is one of the covenants of Alfa Laval’s syndicated loan and an important key figure when reviewing the proposed dividend.
Debt ratio, times
Net debt in relation to equity capital, expressed as a multiple of equity capital.
Interest coverage ratio, times
EBITDA plus financial net increased by interest costs in relation to interest costs. Expressed as a multiple of interest costs. Gives an expression for the Group’s ability to pay interest. The reason EBITDA is used as the starting point is that this forms the starting point for a cash flow perspective on the ability to pay interest. Financial items classified as comparison distorting are excluded from the calculation.
Cash flow from operating activities
Shows the Group’s cash flow from operating activities, that is the cash flow generated in the daily operational activities.
Cash flow from investing activities
Shows the Group’s cash flow from investing activities, i.e. the cash flow generated by mainly the Group’s divestments and acquisitions of businesses and divestments of real estate.
Cash flow from financing activities
Shows the Group’s cash flow from financing activities, that is mainly the cash flow impact of the Group’s loans in terms of interest payments and amortisation.
Investments
Investments represent an important component in the cash flow for the Group. The level of investments during a couple of years gives a picture of the capacity build up in the Group.
Average number of employees
The costs that are related to the number of employees represent a large part of the total costs for the Group. The development of the average number of employees over time in relation to the development of the net sales therefore gives and indication of the cost rationalisation that is taking place.
Earnings per share, SEK
Net income for the year attributable to the equity holders of the parent divided by the average number of shares.
Free cash flow per share, SEK
The sum of cash flows from operating and investing activities for the year divided by the average number of shares. This represents the cash flow available for interest payments, amortisation and dividends to investors.
Tables and diagrams
Sales and earnings Page
Geographic distribution of order intake  
per segment, Equipment Division 29
Geographic distribution of order intake  
per segment, Process Technology Division 31
Growth in invoiced sales, % 4
Key technologies  
Share of Group’s sales 20
Operating margin 1, 4
Order intake, Group 1, 26
Order intake, Equipment Division 27
Order intake, Process Technology Division 27
Order intake, Parts & Service 22
Order intake per customer segment, Group 26
Order intake per customer segment,  
Equipment Division 27, 29
Order intake per customer segment,  
Process Technology Division 27, 31
Order intake per geographic market, Group 26
Order intake per geographic market,  
Equipment Division 27
Order intake per geographic market,  
Process Technology Division 27
R&D costs, SEK M, and percentage of net sales 25
Return on capital employed, % 4
Sales, Group 1
Sales and operating profit, Group 26
Sales and operating profit, Equipment Division 27
Sales and operating profit,  
Process Technology Division 27
Sales per division 26
Sales per employee 35
Share of order intake, Parts & Service 22
Balance sheet  
Cash flow from current operations, % 5
Debt/equity ratio, % 5
Investments, % 5
Investments per geographic market,  
Operations Division 26
Strategy  
Acquisitions and divestments, 1999-2008 7
Future growth, Parts & Service 23
Selected market segments 6
Organization  
Attendance at Board and Committee meetings 115
Average no. of employees 35
Board fees 115
Composition of the Nomination Committee  
for the 2009 Annual General Meeting 113
Distribution, Operations Division 33
Employees per Division 26
Employees per region 35
Gender distribution 35
Geographic distribution of number of  
direct work hours in production, % 26
Production, Operations Division 33
Purchasing per geographic market,  
Operations Division 26
Purchasing, Operations Division 33
Share  
Data per share 123
Dividend 123
Geographical distribution of the free float,  
% of capital and votes 123
Largest shareholders 123
Ownership categories 123
Ownership distribution 123
Share price development 1, 122
Total number of shareholders 123
Total return 122
Sustainability  
Alfa Laval’s carbon-dioxide emissions in 2008 39
Other  
Ten-year summary 124
Financial information
Alfa Laval uses a number of channels to provide information about the company’s operations and financial development. Information published in the form of annual reports, quarterly reports and press releases is presented on an ongoing basis on the company’s website at www.alfalaval.com/investors. Presentation material from capital markets days, press conferences and analyst meetings is also available for downloading at the site.
The annual report is sent to those shareholders who have notified the company that they wish to receive a copy. Annual reports and interim reports can be ordered at www.alfalaval.com or by calling +46 (0)40-36 65 00. Alfa Laval arranges press conferences and analyst meetings following publication of the company’s quarterly reports. In addition, representatives of company management meet with analysts, investors and journalists on an ongoing basis to ensure that these parties have correct and current information on which to base their work.
Pursuant to the company’s agreement with Nasdaq OMX Nordic, information that could have an effect on the share price that is not yet publicly known is never disclosed at these types of meetings or contacts.
Alfa Laval also arranges a so-called capital markets day each year, at which representatives for financial markets are offered more in-depth information regarding the company’s operations.
Alfa Laval employs a so-called silence period of three weeks. This implies that the President and Chief Financial Officer do not meet or speak to representatives from the financial market during the three weeks prior to a quarterly report.
In accordance with the company’s Articles of Association, notice of the Annual General Meeting is inserted as an announcement in Dagens Nyheter and the Swedish Official Gazette at the earliest six and at the latest four weeks prior to the meeting. The information below concerning the meeting does not constitute legal notice. As a service to existing shareholders, information about the Annual General Meeting is sent to them by mail.
Financial information during 2009
Alfa Laval will release financial information during 2009 on the following dates:
First-quarter report 2009 April 20
Annual General Meeting in Lund April 20
Second-quarter report 2009 July 16
Third-quarter report 2009 October 21
Shareholder information
Tel: +46 (0)46-36 65 26. E-mail: investor.relations@alfalaval.com
Analysts tracking Alfa Laval
ABG Sundal Collier
Erik Ejerhed
erik.ejerhed@abgsc.se
+46 (0)8-566 286 64
BAS-ML
Ben Maslen
ben_maslen@ml.com
+44 (0)20 7996 4783
Carnegie
Oscar Stjerngren
oscar.stjerngren@carnegie.se
+46 (0)8-676 87 69
Cazenove
Glen Liddy
glen.liddy@cazenove.com
+44 (0)20 7155 5000
Cheuvreux
Patrik Sjöblom
psjoblom@cheuvreux.com
+46 (0)8-723 51 15
Credit Suisse
Andre Kukhnin
andre.kukhnin@credit-suisse.com
+44 (0)207 888 0350
Deutsche Bank
Johan Wettergren
johan.wettergren@db.com
+46 (0)8-463 55 18
Erik Penser Bankaktiebolag
Joakim Höglund
joakim.hoglund@penser.se
+46 (0)8-463 84 36
Evli Bank
Magnus Axén
magnus.axen@evli.com
+46 (0)8-407 80 38
HQ Bank
Andreas Koski
andreas.koski@hq.se
+46 (0)8-696 18 97
Handelsbanken Capital Markets
Peder Frölén
pefr15@handelsbanken.se
+46 (0)8-701 1251
JP Morgan
Andreas P. Willi
andreas.p.willi@jpmorgan.com
+44 (0)207 325 4853
Morgan Stanley
Guillermo Peigneux
guillermo.peigneux@morganstanley.com
+44 (0)20 7425 7225
Nordea Bank
Ann-Sofie Nordh
ann-sofie.nordh@nordea.com
+46 (0)8 – 534 914 52
RBS
Teea Reijonen
teea.reijonen@rbs.com
+44 (0) 20 7678 1261
SEB Enskilda
Anders Eriksson
anders.eriksson@enskilda.se
+46 (0)8-52 22 96 39
Standard and Poor’s Equity Research
Heenal Patel
Heenal_patel@standardandpoors.com
+44 (0)20 7176 3641
Swedbank
Mats Liss
mats.liss@swedbank.se
+46 (0)8-5859 1262
UBS
Sven Weier
sven.weier@ubs.com
+49 (0)69 1369 8278
Öhmans
Anders Roslund
anders.roslund@ohman.se
+46 (0)8-402 52 69
Annual General Meeting 2009
The Annual General Meeting of Alfa Laval AB (publ) will be held on Monday, April 20, 2009 at 4:00 p.m. at Färs & Frosta Sparbank Arena, Klostergården’s sports area, Stattenavägen, in Lund. Light refreshments will be served after the Meeting.
Meeting program
1:30 p.m. Bus departs from Färs & Frosta Sparbank Arena for Alfa Laval’s
  production unit for heat exchangers in Lund
3:30 p.m. Registration starts
4:00 p.m. Start of Meeting
Notification of participation
Shareholders who wish to participate in the Meeting and be entitled to vote must be entered in the share register maintained by Euroclear Sweden AB (formerly VPC AB) not later than Tuesday, April 14, 2009, and register their intention to participate – along with any assistants – not later than Tuesday, April 14, 2009 at 12:00 noon.
Shareholders whose shares are held in trust must temporarily re-register their shares in their own names not later than April 14. The shareholder must inform the trustee about this at least two working days before the deadline.
Notification of participation shall be made to:
• Alfa Laval AB, Group Staff Legal, Box 73, SE-221 00 Lund, Sweden • E-mail: arsstamma.lund@alfalaval.com • Fax: +46 (0)46–36 71 87 • Website: www.alfalaval.com • Telephone: +46 (0)46–36 74 00 or 36 65 00.
Shareholders shall state their name, personal ID number and telephone number on the notice of participation. If participation is by proxy, this power of attorney or authorization shall be submitted to the company prior to the Meeting.
Dividend
The Board of Directors and the President propose to the Annual General Meeting that a dividend of SEK 2.25 per share be paid. The proposed record date for this dividend is Thursday, April 23, 2009. If the meeting approves the proposal, the dividend will be distributed by Euroclear Sweden AB (formerly VPC AB) on Tuesday, April 28, 2009.
However, the record date and dividend payment date may be postponed due to the technical procedures required for executing the payment.
Tour of production facility in Lund
Prior to the Annual General Meeting there will be an opportunity to view the production of plate heat exchangers at the plant in Lund. The tour begins with assembly at Färs & Frosta Sparbank Arena, Klostergården’s sports area, Stattenavägen in Lund not later than 1:30 p.m. Buses will be provided for transportation to the plant and back to the Meeting site. Registration for the tour shall be made in conjunction with the notification to participate in the Annual General Meeting. Please note that the number of participants is limited.