SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2003
Alfa Laval Special Finance AB
(Commission File No. 333-13690)
(Translation of Registrants' Names Into English)
Rudeboksvagen 3,
Lund,
Sweden
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
---
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): _____.
[Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.]
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): _____.
[Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.]
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934:
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_____.
Enclosures: Interim report April 1-June 30, 2003 of Alfa Laval Special Finance
AB.
Alfa Laval Special Finance AB
Interim report April 1 - June 30, 2003
"Orders received for Alfa Laval have developed as anticipated during the second
quarter. The main markets are still weak but some signs of improvement can be
noted for certain customer segments as well as geographically.
Within the Equipment division orders received, excluding exchange rate
variations, were higher than during the first half of 2002, while orders
received within the Process Technology division were lower. Orders received from
the aftermarket, Parts & Service continued to increase.
As anticipated, the result after financial items improved substantially during
the period, despite adverse effects of exchange rate variations."
Sigge Haraldsson, President and CEO, Alfa Laval Special Finance
Summary of the second quarter 2003:
- Order intake, excluding exchange rate variations, decreased by 1.6
percent to SEK 3,554 million.
- Net sales, excluding exchange rate variations, increased by 1.6 percent
to SEK 3,402 million.
- Adjusted EBITA was SEK 414 (447) million, including adverse foreign
exchange effects of approximately SEK 65 million.
- Adjusted EBITA-margin was 12.2 (12.2) percent.
- Result after financial items increased to SEK 213 (-164) million.
- Cash flow from operating activities was SEK 614 (631) million.
Summary of the first six months 2003:
- Order intake, excluding exchange rate variations, decreased by 0.4
percent to SEK 6,932 million.
- Net sales, excluding exchange rate variations, increased by 1.4 percent
to SEK 6,397 million.
- Adjusted EBITA was SEK 735 (809) million, including adverse foreign
exchange effects of approximately SEK 115 million.
- Adjusted EBITA-margin was 11.5 percent (11.7).
- Result after financial items increased to SEK 354 (-106) million.
- Result after tax increased to SEK 231 (-234) million.
- Earnings per share increased to SEK 28 (-105).
- Cash flow from operating activities was SEK 829 (984) million.
Outlook 2003
Alfa Laval is expecting the orders received during 2003 to show a limited
increase compared to 2002 excluding translation differences. The major part of
this increase is expected through acquired activities together with a marginal
organic growth during the latter part of 2003.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 2(16)
The restructuring programme "Beyond Expectations", that is to be completed by
the end of 2003 will give continued savings during the year. Additional savings
initiatives are implemented to reduce the negative impact from foreign exchange.
Profit before tax will show a major improvement.
Earlier published outlook (April 26, 2003):
As in previous outlook, Alfa Laval is expecting the orders received during 2003
to show a limited increase compared to 2002 excluding translation differences.
The major part of this increase is expected through acquired activities together
with a marginal organic growth during the latter part of 2003. It must though be
added that the uncertainty that is characterizing the situation in the world of
course means that all forecasts are uncertain.
The restructuring programme "Beyond Expectations", that is to be completed by
the end of 2003, will give continued savings during the year.
Foreign exchange translation as well as transaction exposures are expected to
have a larger negative impact than previously anticipated on the adjusted EBITA.
The interim report has been issued on August 14, 2003 by the President and Chief
Executive Officer Sigge Haraldsson by proxy.
The interim report has not been subject to review by the company's auditors.
- ------------------------------------------------------------------------------------------------------------
SEK millions, unless April 1 - April 1 - Jan 1 - Jan 1 -
otherwise stated June 30 June 30 June 30 June 30
2003 2002 2003 2002 2002 2001
- ------------------------------------------------------------------------------------------------------------
Order intake 3,554 3,964 6,932 7,645 14,675 15,894
- ------------------------------------------------------------------------------------------------------------
Net sales 3,402 3,654 6,397 6,916 14,595 15,830
- ------------------------------------------------------------------------------------------------------------
Adjusted EBITDA(1) 486 530 882 980 2,091 2,141
- ------------------------------------------------------------------------------------------------------------
Adjusted EBITA(2) 414 447 735 809 1,760 1,740
- ------------------------------------------------------------------------------------------------------------
Adjusted EBITA(2)- margin 12.2% 12.2% 11.5% 11.7% 12.1% 11.0%
- ------------------------------------------------------------------------------------------------------------
Result after financial items 213 -164 354 -106 460 373
- ------------------------------------------------------------------------------------------------------------
Return on capital employed(3) 21.2% 17.7% 20.3% 18.5%
- ------------------------------------------------------------------------------------------------------------
Return on equity capital(3) 15.4% -2.1% 4.7% 10.1%
- ------------------------------------------------------------------------------------------------------------
Solidity 28.8% 25.6% 28.6% 20.6%
- ------------------------------------------------------------------------------------------------------------
Debt ratio, times 0.74 1.03 0.79 1.57
- ------------------------------------------------------------------------------------------------------------
Cash flow from operations 614 631 829 984 2,047 1,976
- ------------------------------------------------------------------------------------------------------------
Investments 61 98 90 152 277 275
- ------------------------------------------------------------------------------------------------------------
No. of employees (units)(4) 9,150 9,399 9,125 9,259
- ------------------------------------------------------------------------------------------------------------
1) Adjusted EBITDA - "Earnings before interests, taxes, depreciation,
amortisation of goodwill and step up values and comparison distortion
items."
2) Adjusted EBITA - "Earnings before interests, taxes, amortisation of goodwill
and step up values and comparison distortion items.
3) Calculated on a 12 months' revolving basis. The new issue of shares in May
2002 has changed the basis for the calculation of return on equity capital,
which has affected the comparison figure.
4) Number of employees at the end of the period.
- ---------------------------------------------------------------------------------------------------------
Alfa Laval Special Finance AB Visiting address: For more information, please contact:
PO Box 73 Rudeboksvagen 3 Mikael Sjoblom, Investor Relations Manager
SE-221 00 Lund Phone: + 46 46 36 65 00 Phone: +46 46 36 74 82,
Sweden Website: www.alfalaval.com Mobile: +46 709 78 74 82,
Corporate registration E-mail: mikael.sjoblom@alfalaval.com
number: 556587-8062
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 3(16)
Management's discussion and analysis
Orders received
Orders received amounted to SEK 3,554.1 (3,963.8) million for the second
quarter. Excluding exchange rate variations, the order intake for the Group was
1.6 percent lower than the second quarter last year.
Orders received amounted to SEK 6,931.8 (7,645.2) million for the first six
months. Excluding exchange rate variations, the order intake for the Group was
0.4 percent lower than the same period last year.
Orders received from the after market Parts & Service were 27.4 (27.0) percent
of the group's total orders received.
Order backlog
The order backlog at June 30, 2003 was SEK 4,380.1 (4,899.1) million. Excluding
exchange rate variations, the order backlog was 1.4 percent lower than the order
backlog at June 30, 2002 and 13.8 percent higher than the order backlog at the
end of 2002. The latter is due to the fact that the Group normally has
considerably higher invoicing during the last months of the year.
Net sales
Net sales of the Alfa Laval Special Finance Group amounted to SEK 3,402.0
(3,654.2) million for the second quarter of this year. Excluding exchange rate
variations, the invoicing was 1.6 percent higher than the second quarter of last
year.
Net sales of the Alfa Laval Special Finance Group amounted to SEK 6,396.7
(6,916.1) million for the first six months. Excluding exchange rate variations,
the invoicing was 1.4 percent higher than the period January to June last year.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 4(16)
Comments on the Income Statement
As a basis for comments on the various main items of the income statement,
please find a comparison between April - June and January - June for 2003 and
2002 and January - December for 2002 and 2001:
Income statement analysis
Consolidated
April 1 - April 1 - Jan 1 - Jan 1 - Jan 1 - Jan 1 -
June 30 June 30 June 30 June 30 Dec 31 Dec 31
SEK millions 2003 2002 2003 2002 2002 2001
- -------------------------------------------------------------------------------------------------------------
Net sales 3,402.0 3,654.2 6,396.7 6,916.1 14,594.9 15,829.6
Adjusted gross profit 1,334.5 1,426.4 2,531.9 2,717.8 5,651.7 5,815.5
- - in % of net sales 39.2 39.0 39.6 39.3 38.7 36.7
Expenses -848.3 -896.7 -1,649.7 -1,737.6 -3,560.7 -3,674.7
- - in % of net sales 24.9 24.5 25.8 25.1 24.4 23.2
Adjusted EBITDA 486.2 529.7 882.2 980.2 2,091.0 2,140.8
- - in % of net sales 14.3 14.5 13.8 14.2 14.3 13.5
Depreciation -72.2 -83.1 -146.9 -170.9 -331.3 -400.3
Adjusted EBITA 414.0 446.6 735.3 809.3 1,759.7 1,740.4
- - in % of net sales 12.2 12.2 11.5 11.7 12.1 11.0
Amortisation of goodwill* -121.8 -125.7 -245.5 -252.1 -506.7 -511.9
Comparison distortion items 0.0 0.5 3.6 -44.3 -29.2 5.3
--------------------------------------------------------------------------------
EBIT 292.2 321.4 493.4 512.9 1,223.8 1,233.8
- -------------------------------------------------------------------------------------------------------------
* Including amortisation of step-up values
The first six months generated a gross profit of SEK 2,379.2 (2,556.1) million.
Excluding the amortisation of SEK 152.7 (161.7) million on step up values, the
adjusted gross profit is SEK 2,531.9 (2,717.8) million. This corresponds to 39.6
(39.3) percent of net sales. The gross margin is 0.3 percentage units higher
than last year. This is due to three main factors. The restructuring programme
and the increased proportion of the aftermarket sales have improved the gross
margin, whereas the changes in exchange rates have had an adverse effect.
Sales and administration expenses amounted to SEK 1,548.0 (1,641.3) million.
Excluding exchange rate variations, these expenses were at the same level as
last year.
The costs for research and development has amounted to SEK 188.0 (166.5)
million, corresponding to 2.9 (2.4) percent of net sales. At constant exchange
rates, this represents an increase by SEK 21.3 million or 12.8 percent.
Adjusted EBITDA amounted to SEK 882.2 (980.2) million for the first six months.
The adjusted EBITA amounted to SEK 735.3 (809.3) million. The adjusted EBITA
margin was 11.5 (11.7) percent.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 5(16)
The result has been affected by comparison distortion items of SEK 3.6 (-334.6)
million. On February 26, 2003 the property in Newmarket, Canada was sold for SEK
20.0 million, with a realised gain of SEK 3.6 million. The sale of the property
in Warminster, the United States was completed at the end of March 2002 at a
price of SEK 62.1 million. The realised loss was SEK -44.3 million. In
connection with the dissolution of the previous capital structure in May 2002,
the profit and loss statement was charged with non-recurring financial costs of
SEK -290.3 million.
Divisional reporting
Equipment division
The Equipment division is made up of six customer segments: Comfort &
Refrigeration, Fluids & Utility Equipment, Marine & Diesel, OEM, Sanitary
Equipment and the aftermarket segment Parts & Service.
April 1- April 1- Jan 1- Jan 1- Jan 1- Jan 1-
June 30 June 30 June 30 June 30 Dec 31 Dec 31
SEK millions 2003 2002 2003 2002 2002 2001
- ------------------------------------------------------------------------------------------------
Orders received 2,049.6 2,153.0 4,014.5 4,271.7 8,092.6 8,557.9
Order backlog * 1,663.1 1,759.4 1,564.5 1,648.3
Net sales 1,940.4 2,105.9 3,769.9 4,084.0 8,129.6 8,576.2
Operating income 185.7 257.0 377.6 497.7 1,078.3 1,083.6
- ------------------------------------------------------------------------------------------------
* At the end of the period.
Orders received and net sales (all comments are after adjustment for exchange
rate fluctuations)
Orders received increased by 1.2 percent and net sales decreased by 0.5 percent
for the first six months 2003 compared to the corresponding period last year.
Orders received and net sales for the customer segments have developed as
follows. The Fluids & Utility Equipment customer segment's orders received and
net sales have increased due to increased sales through external channels as
well as direct sales. The Comfort & Refrigeration customer segment shows growth
in both the heating and refrigeration applications; the OEM customer segment
grows through new projects as well as growth within the existing customer base,
above all for the engine application and Parts & Service show increased sales,
mainly to the Marine & Diesel customers. Orders received and net sales for the
Marine & Diesel customer segment have decreased due to fewer contracts for new
construction at the shipyards during most of 2002. However, an increase in the
contracting to the shipyards starting late last year is expected to give an
increase for Marine & Diesel during the second half of 2003.
Operating result (all comments are after adjustment for exchange rate
fluctuations)
The decrease in operating income for the first six months 2003 is due to lower
gross margin by SEK 39.4 million, higher costs for research and development by
SEK 11.0 million and for other overhead by SEK 34.9 million and a negative
translation impact from exchange rates by SEK 34.8 million.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 6(16)
Process Technology division
The Process Technology division is made up of five customer segments: Energy &
Environment, Food Technology, Life Science, Process Industry and the aftermarket
segment Parts & Service.
April 1- April 1- Jan 1- Jan 1- Jan 1- Jan 1-
June 30 June 30 June 30 June 30 Dec 31 Dec 31
SEK millions 2003 2002 2003 2002 2002 2001
- ------------------------------------------------------------------------------------------------
Orders received 1,483.1 1,781.1 2,879.0 3,317.9 6,488.1 7,026.9
Order backlog* 2,703.6 3,123.7 2,752.6 2,654.7
Net sales 1,441.1 1,524.6 2,584.6 2,773.2 6,377.1 6,872.0
Operating income 54.1 84.1 45.8 107.1 521.4 472.7
- ------------------------------------------------------------------------------------------------
* At the end of the period.
Orders received and net sales (all comments are after adjustment for exchange
rate fluctuations)
Orders received decreased by 4.3 percent and net sales increased by 3.7 percent
for the first six months 2003 compared to the corresponding period last year.
Orders received and net sales for the customer segments have developed as
follows. The Food Technology customer segment's orders received and net sales
grow through increased investments within applications like vegetable oil and
wine, beverages & viscous food as well as olive oil. Parts & Service show an
increase in sales for all customer segments, but especially for Life Science.
The Process Industry customer segment is reporting a decrease of orders, mainly
within the natural resources application whereas the high opening backlog for
this application has kept the overall invoicing up. The same is valid for the
Life Science customer segment due to a decrease of orders within the
biotechnology and pharmaceutical application, whereas the high opening backlog
has kept the overall invoicing up. The Energy & Environment customer segment
shows decreasing orders received and net sales mainly due to a weak investment
climate within the oil and gas industry and the power application.
Operating result (all comments are after adjustment for exchange rate
fluctuations)
The decrease in operating income for the first six months 2003 is due to lower
gross margin by SEK 21.1 million, higher costs for research and development by
SEK 10.1 million and for other overhead by SEK 2.6 million and a negative
translation impact from exchange rates by SEK 27.5 million.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 7(16)
Operations division and Other
Operations are responsible for procurement, production and logistics. Other is
referring to corporate overhead and non-core businesses.
April 1- April 1- Jan 1- Jan 1- Jan 1- Jan 1-
June 30 June 30 June 30 June 30 Dec 31 Dec 31
SEK millions 2003 2002 2003 2002 2002 2001
- ------------------------------------------------------------------------------------------------
Orders received 21.4 29.7 38.3 55.6 94.1 96.1
Order backlog * 13.4 16.0 23.0 9.5
Net sales 20.5 23.7 42.2 58.9 88.2 169.4
Operating income 52.4 -20.2 66.4 -47.6 -346.7 -318.6
- ------------------------------------------------------------------------------------------------
* At the end of the period.
The change in operating income between the first half year 2003 and 2002 is due
to decreased costs for corporate overhead with SEK 40.6 million, change in
central provisions with SEK 28.3 million, improved operating income in the
Operations division with SEK 18.7 million, receivable on insurance captive
(property and business interruption insurance) brought to income with SEK 18.0
million and improved operating income for non core businesses with SEK 8.4
million.
Reporting by geographical markets
The Group's secondary segments are geographical markets. All comments are after
considering exchange rate variations.
Orders received
Asia, Central and Eastern Europe and Latin America are reporting increased
orders received. North America, Western Europe, the Nordic countries, Oceania
and Africa reported decreased orders received.
Net sales
The invoicing increased strongly in Central and Eastern Europe, Asia, Oceania
and Africa and increased in Western Europe and Latin America. North America and
the Nordic countries are below the level of last year.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 8(16)
Net sales
Jan 1 - June 30 Jan 1 - June 30 Jan 1 - Dec 31 Jan 1 - Dec 31
2003 2002 2002 2001
SEK SEK SEK SEK
Consolidated millions % millions % millions % millions %
- -----------------------------------------------------------------------------------------------------------------------
Customers in
Sweden 414.5 6.5 393.6 5.7 835.1 5.7 770.0 4.9
Other EU 2,246.7 35.1 2,271.3 32.9 4,953.0 33.9 5,448.5 34.4
Other Europe 681.3 10.7 690.9 10.0 1,497.8 10.3 1,426.0 9.0
United States 983.3 15.4 1,340.3 19.4 2,638.7 18.1 2,815.7 17.8
Oth North America 160.8 2.5 159.8 2.3 423.5 2.9 347.3 2.2
Latin America 256.2 4.0 325.3 4.7 626.7 4.3 728.0 4.6
Africa 65.7 1.0 44.0 0.6 69.6 0.5 151.7 1.0
Asia 1,465.3 22.9 1,585.5 22.9 3,296.6 22.6 3,835.3 24.2
Oceania 122.9 1.9 105.4 1.5 253.8 1.7 307.2 1.9
----------------------------------------------------------------------------------------------------
Total 6,396.7 100.0 6,916.1 100.0 14,594.9 100.0 15,829.6 100.0
- -----------------------------------------------------------------------------------------------------------------------
Consolidated financial result and net income
The financial net has amounted to SEK -144.6 (-242.0) million, excluding
realised and unrealised exchange rate losses and gains. The main elements of
costs were interest on debt to the banking syndicate of SEK -75.9 (-124.3)
million, interest on the bond loan of SEK -69.5 (-120.5) million and a net of
dividends and other interest income and interest costs of SEK -0.8 (2.8)
million.
The net of realised and unrealised exchange rate differences amounts to SEK 5.6
(-86.1) million.
Income taxes were SEK -104.3 (-111.9) million.
The parent company's result after financial items was SEK 5.1 (-1.0) million,
out of which net interest costs were SEK 5.3 (-1.0) million and administration
costs the remaining SEK -0.2 (-) million.
Asbestos-related lawsuits in the United States
Alfa Laval's subsidiary in the US, Alfa Laval Inc, was as of June 30, 2003 named
as co-defendant in a total of 109 asbestos-related lawsuits with a total of
approximately 20,200 plaintiffs. The lawsuits filed in Mississippi account for
approximately 99% of all plaintiffs.
Alfa Laval strongly believes the claims against the company are without merit
and intends to vigorously contest each lawsuit.
After thorough investigations Alfa Laval continues to believe that potential
claims in connection with asbestos related lawsuits against Alfa Laval Inc will
be covered by insurance policies. Furthermore, primary insurance policies issued
in favour of Alfa Laval Inc. provide for coverage of its defense costs.
During the second quarter 2003 Alfa Laval Inc has been named as co-defendant in
an additional 27 lawsuits with a total of approximately 2,700 plaintiffs and 15
lawsuits have been resolved. This gives a grand total of 52 lawsuits that have
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 9(16)
been resolved. 98% of the increase in plaintiffs is related to multiple
plaintiffs lawsuits filed in Mississippi during 2002.
Based on current information and Alfa Laval's understanding of these lawsuits,
Alfa Laval continues to believe that these lawsuits will not have a material
adverse effect on the company's financial condition or results of operation.
Cash flow
Cash flow from operating and investing activities amounted to SEK 776.9 (498.4)
million during the first six months, out of which divestments generated cash of
SEK 26.0 (60.8) million.
Working capital decreased by SEK 93.6 (161.8) million during the first six
months.
Investments in property, plant and equipment amounted to SEK 89.6 (152.1)
million during the first six months. Depreciations, excluding allocated step up
values, amounted to SEK 146.9 (170.9) million during the period.
Cash and bank
The Group's cash and bank amounted to SEK 485.0 (789.5) million. The item cash
and bank in the balance sheet and in the cash flow statement is mainly relating
to bank deposits. Cash and bank includes a bank deposit in the publicly listed
subsidiary Alfa Laval (India) Ltd of about SEK 36.3 (63.5) million. The company
is not a wholly owned subsidiary of the Alfa Laval Special Finance Group. It is
owned to 64.1 percent.
Borrowings and net debt
Total bank borrowings amounted to SEK 2,797.2 (3,918.8) million at the end of
the period. The total financial indebtedness including leasing and interest
bearing pension liabilities amounted to SEK 3,924.3 (5,243.6) million.
Net financial debt amounted to SEK 3,134.3 (4,286.2) million at June 30.
On January 27, 2003 a voluntary amortisation of SEK 223.1 million was made on
the syndicated loan.
On February 19 and May 15, 2003, Alfa Laval has re-purchased bonds at the
prevailing market rate for a face value of SEK 27.3 million. The difference
between the higher market value and the face value was SEK 5.0 million, which
has been reported as an interest cost. The bond loan accrues interest at 12.125
percent, which is considerably more than the Group's current cost for other
external financing.
The loan facility with the banking syndicate consists of two parts. The first
part is an amortisation free loan of originally EUR 423.9 million. This has been
reduced to EUR 285.9 million through voluntary amortisation of EUR 86.2 million
and reduction through exchange rate movements of EUR 51.8 million. The other
part is a revolving working capital facility of EUR 150 million, which was
unutilised as of June 30, 2003. The maturity of this combined facility is five
years and the interest is based on applicable IBOR plus a mark up based on the
relation between net debt and EBITDA.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 10(16)
Debt table
- ------------------------------------------------------------------------------------
Consolidated
June 30 June 30 December 31 December 31
SEK millions 2003 2002 2002 2001
- ------------------------------------------------------------------------------------
Credit institutions 2,797.2 3,918.8 3,360.2 4,573.1
Bond loan 1,102.0 1,297.7 1,127.6 2,045.3
Capitalised finance leases 19.0 20.7 24.7 26.9
Interest-bearing pension
liabilities 6.1 6.4 6.1 6.4
---------------------------------------------------------
Total debt 3,924.3 5,243.6 4,518.7 6,651.6
Cash and bank and other
current deposits 790.0 957.4 1,020.2 959.7
---------------------------------------------------------
Net debt 3,134.3 4,286.2 3,498.5 5,691.9
- ------------------------------------------------------------------------------------
Ownership and legal structure
Alfa Laval Special Finance AB is the parent company of the Alfa Laval Special
Finance Group.
Alfa Laval Special Finance AB's parent company Alfa Laval AB (publ) is since May
17, 2002 listed on the Stockholm Stock Exchange. The number of shareholders was
5,631 on June 30, 2003. The two largest owners are Industri Kapital and Tetra
Laval, where 26.9 (26.9) percent are owned by the partnerships that are
controlled by Industri Kapital 2000 Ltd, United Kingdom and 17.7 (15.9) percent
are owned by Tetra Laval B.V., the Netherlands. Next to them there are eight
institutional investors with ownership in the range of 3.8 to 2.0 percent. These
ten largest owners own 67.1 percent of the shares.
Acquisitions and disposals
On January 31, 2003, the Danish Toftejorg A/S Group was acquired, with effect
from January 1, 2003. The Group has annual sales of about SEK 210 million and
approximately 100 employees. The operations cover R&D, assembly and sales of
advanced tank cleaning equipment, targeting the Food and Marine industries. In
addition to the operations in Denmark, the Toftejorg Group has sales companies
in Sweden, Norway, Germany, the UK, France, Singapore, the United States and its
own representation in South Korea.
On February 26, 2003 the property in Newmarket in Canada was sold for SEK 20.0
million, with a realised gain of SEK 3.6 million. The disposal is reported as a
comparison distortion item in the income statement.
Accounting principles
The same accounting principles and accounting estimates have been applied in the
interim report for June 2003 as for the annual report for 2002.
Date for the next financial report
The interim report for the third quarter of 2003 will be published on October
28, 2003.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 11(16)
Capital Market Day
Alfa Laval will arrange a Capital Market Day in Copenhagen on September 16,
2003.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 12(16)
CONSOLIDATED CASH FLOW STATEMENT
Jan 1- Jan 1- Jan 1-
June 30 June 30 Dec 31
SEK millions 2003 2002 2002
- -------------------------------------------------------------------------------------
Cash flow from operating activities
Operating income 493.4 512.9 1,223.8
Adjustment for depreciations 392.4 423.0 838.0
Adjustment for non cash items 1.0 44.3 35.0
-------------------------------------
886.8 980.2 2,096.8
Taxes paid -151.1 -157.7 -396.2
Cash generated from operations before
changes in working capital 735.7 822.5 1,700.6
Change in working capital:
(Increase)/decrease of current
receivables 252.1 340.2 340.0
(Increase)/decrease of inventories -374.1 -335.7 140.4
Increase/(decrease) of current
liabilities 215.6 157.3 -134.2
-------------------------------------
93.6 161.8 346.2
-------------------------------------
Cash flows from operating activities 829.3 984.3 2,046.8
=====================================
Cash flow from investing activities
Investments in fixed assets -89.6 -152.1 -276.7
Divestment of fixed assets 26.0 60.8 120.7
Additional purchase price -- -367.5 -367.5
Acquisition of businesses -45.0 -- -135.7
Reduction of purchase price -- -- 81.6
Provisions 56.2 -27.1 29.8
-------------------------------------
Cash flow from investing activities -52.4 -485.9 -547.8
=====================================
Cash flow from financing activities
Financial net, paid -149.1 -299.7 -590.1
New issue of shares -- 819.0 819.0
Dividends -400.0 -- --
(Increase)/decrease of other current deposits 103.2 106.7 -84.2
Capitalised financing costs,
acquisition loans -- -- -39.7
Increase/(decrease) of liabilities to
credit institutions -411.8 -910.3 -1,548.2
-------------------------------------
Cash flow from financing activities -857.7 -284.3 -1,443.3
=====================================
Net increase (decrease) in cash and
bank -80.8 214.1 55.7
Cash and bank at the beginning of the year 605.9 666.4 666.4
Translation difference in cash and bank -40.1 -91.0 -116.2
Cash and bank at the end of the period 485.0 789.5 605.9
- -------------------------------------------------------------------------------------
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 13(16)
CONSOLIDATED INCOME STATEMENT
April 1 - April 1 - Jan 1 - Jan 1 - Jan 1 -
June 30 June 30 June 30 June 30 Dec 31
SEK millions 2003 2002 2003 2002 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Net sales 3,402.0 3,654.2 6,396.7 6,916.1 14,594.9
Cost of goods sold -2,143.1 -2,307.8 -4,017.5 -4,360.0 -9,262.2
--------------------------------------------------------------------------------------------------
Gross profit 1,258.9 1,346.4 2,379.2 2,556.1 5,332.7
- ------------------------------------------------------------------------------------------------------------------------------------
Sales costs -561.8 -577.7 -1099.0 -1,117.1 -2,115.1
Administration costs -223.3 -256.9 -449.0 -524.2 -1,026.8
Research and
development costs -92.3 -90.1 -188.0 -166.5 -355.2
Comparison distortion items - 0.5 3.6 -44.3 -29.2
Other operating income 75.9 29.3 131.5 128.2 268.7
Other operating costs -119.0 -84.4 -192.1 -228.9 -663.6
Amortisation of goodwill -46.2 -45.7 -92.8 -90.4 -187.7
--------------------------------------------------------------------------------------------------
Operating income 292.2 321.4 493.4 512.9 1,223.8
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends 1.1 0.7 6.2 5.2 7.8
Interest income 39.4 -15.4 113.8 84.5 322.7
Interest costs -119.4 -180.8 -259.0 -417.8 -803.5
Comparison distortion items - -290.3 - -290.3 -290.7
--------------------------------------------------------------------------------------------------
Result after financial items 213.3 -164.4 354.4 -105.6 460.1
- ------------------------------------------------------------------------------------------------------------------------------------
Minority share in subsidiaries'
income -9.1 -7.8 -18.8 -16.0 -33.7
Taxes -50.3 -66.6 -104.3 -111.9 -218.2
--------------------------------------------------------------------------------------------------
Net income 153.9 -238.8 231.3 -233.5 208.2
- ------------------------------------------------------------------------------------------------------------------------------------
Earnings per share (SEK) 18.79 -54.14 28.24 -105.27 39.82
Average number of shares * 8,190,000 4,411,000 8,190,000 2,218,182 5,229,137
* The average number of shares has been changed through split and new issue of
shares.
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 14(16)
In order to illustrate the quarterly development, the income statement analysis
is shown also for the last ten quarters:
Income statement analysis
Consolidated
2001 | 2002 | 2003
| |
SEK millions Q1 Q2 Q3 Q4 | Q1 Q2 Q3 Q4 | Q1 Q2
Net sales 3,452.4 3,806.5 3,832.1 4,738.6 | 3,261.9 3,654.2 3,503.7 4,175.1 | 2,994.7 3,402.0
| |
Adjusted gross profit 1,335.9 1,433.3 1,366.8 1,679.5 | 1,291.5 1,426.4 1,394.7 1,539.1 | 1,197.4 1,334.5
- - in % of net sales 38.7 37.7 35.7 35.4 | 39.6 39.0 39.8 36.9 | 40.0 39.2
| |
Expenses -866.7 -848.8 -879.4 -1,079.8 | -840.9 -896.7 -902.6 -920.5 | -801.4 -848.3
- - in % of net sales 25.1 22.3 23.0 22.8 | 25.8 24.6 25.8 22.0 | 26.8 24.9
| |
Adjusted EBITDA 469.2 584.5 487.4 599.7 | 450.6 529.7 492.1 618.6 | 396.0 486.2
- - in % of net sales 13.6 15.4 12.7 12.6 | 13.8 14.5 14.0 14.8 | 13.2 14.3
| |
Depreciation -103.1 -99.8 -94.1 -103.3 | -87.8 -83.1 -78.6 -81.8 | -74.7 -72.2
| |
Adjusted EBITA 366.1 484.7 393.3 496.4 | 362.8 446.6 413.5 536.8 | 321.3 414.0
- - in % of net sales 10.6 12.7 10.2 10.5 | 11.1 12.2 11.8 12.9 | 10.7 12.2
| |
Amortisation of | |
goodwill ** -119.9 -134.3 -129.8 -127.9 | -126.4 -125.7 -128.7 -125.9 | -123.7 -121.8
| |
Comparison distortion | |
items 0.0 0.0 0.0 5.3 | -44.9 0.5 15.9 -0.7 | 3.6 0.0
---------------------------------------|---------------------------------------|---------------------
EBIT 246.2 350.4 263.5 373.8 | 191.5 321.4 300.7 410.2 | 201.2 292.2
* Including amortisation of step-up values
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 15(16)
CONSOLIDATED BALANCE SHEET
June 30 June 30 Dec 31
SEK millions 2003 2002 2002
- --------------------------------------------------------------------------------
ASSETS
Non-current assets:
Intangible assets 4,382.7 4,858.6 4,703.3
Property, plant and equipment 2,899.5 3,186.6 3,082.7
Financial assets 677.5 832.0 751.9
Current assets:
Inventories 2,637.9 2,784.7 2,279.0
Accounts receivable 2,469.8 2,691.5 2,504.0
Other receivables 877.7 962.0 1,085.6
Other current deposits 305.0 167.9 414.3
Cash and bank 485.0 789.5 605.9
TOTAL ASSETS 14,735.1 16,272.8 15,426.6
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity: 4,245.7 4,159.1 4,413.0
Minority interests 107.8 104.7 108.2
Provisions for:
Pensions and similar commitments 744.6 682.7 720.6
Deferred taxes 969.1 1,058.0 990.3
Other 923.4 947.3 989.3
----------------------------------------
2,637.1 2,688.1 2,700.2
Non-current liabilities:
Liabilities to credit institutions 2,660.0 3,725.2 3,105.8
Bond loan 1,102.0 1,297.7 1,127.6
----------------------------------------
3,762.0 5,022.9 4,233.4
Current liabilities:
Liabilities to credit institutions 137.2 193.6 254.4
Accounts payable 1,122.6 1,278.6 1,173.2
Advances from customers 632.7 746.5 571.3
Other liabilities 2,090.0 2,079.4 1,973.0
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES 14,735.1 16,272.8 15,426.6
- --------------------------------------------------------------------------------
Alfa Laval Special Finance AB Interim report April 1-June 30, 2003
Page 16(16)
CHANGES IN CONSOLIDATED EQUITY
SEK millions
- --------------------------------------------------------------------------------
Jan 1- June 30 Jan 1- June 30 Jan 1- Dec 31
2003 2002 2002
- --------------------------------------------------------------------------------
At the beginning of the period 4,413.0 3,628.9 3,628.9
New issue of shares -- 819.0 819.0
Dividends -400.0 -- --
Group contribution -- -- -53.4
Translation difference 1.4 -55.3 -189.6
Net income for the period 231.3 -233.5 208.2
-------------------------------------------------
At the end of the period 4,245.7 4,159.1 4,413.0
- --------------------------------------------------------------------------------
The share capital of SEK 819,100,000 is divided into 8,191,000 shares at par
value SEK 100.
On June 13, 2002 the share capital was increased by SEK 819,000,000 through a
new issue of 8,190,000 shares to Alfa Laval AB (publ).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this Current Report to be signed on their
behalf by the undersigned, thereunto duly authorized.
Alfa Laval Special Finance AB
Date: August 14, 2003 By: /s/ Thomas Thuresson
-----------------------------------
Thomas Thuresson
Chief Financial Officer