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 April 2004
Alfa Laval Special Finance AB
(Commission File No. 333-13690)
(Translation of Registrants' Names Into English)
Rudeboksvagen 1,
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-_____.
Enclosure: -Interim report January 1-March 31, 2004 of Alfa Laval Special
Finance AB.
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: April 27, 2004 By: ________________
Thomas Thuresson
Chief Financial Officer
[ALFA LAVAL LOGO]
Alfa Laval Special Finance AB
Interim report January 1 - March 31, 2004
"The first quarter 2004 was strong for Alfa Laval, both in terms of order
intake, net sales and operating profit.
Order intake increased 23 percent, excluding exchange rate variations, compared
to the first quarter last year. All customer segments developed better and
geographically Europe, Asia and North America showed a strong increase.
Net sales during the period increased six percent and operating profit increased
approximately 20 percent, which resulted in a operating margin of 12.1 percent,
a clear positive development compared to the first quarter 2003."
Sigge Haraldsson, President and CEO,
Alfa Laval Special Finance AB
Summary of the first quarter 2004:
- Order intake increased to SEK 3,929 (3,378) million, meaning an increase
by 22.6 percent excluding exchange rate variations.
- Net sales were SEK 3,184 (2,995) million, meaning an increase by 12.1
percent excluding exchange rate variations.
- Adjusted EBITA increased to SEK 386 (321) million, including adverse
foreign exchange effects of SEK 68 million.
- Adjusted EBITA-margin increased to 12.1 percent (10.7).
- Result after financial items increased to SEK 212 (141) million.
- Cash flow from operating activities increased to SEK 323 (216) million.
Outlook 2004
Markets recovered during the second half of 2003 within most of the customer
segments in which Alfa Laval is active. It is our opinion that the recovery will
continue during 2004. Assuming that the recovery will not be affected by
unforeseen events in the world, we believe in a strong increase in orders
received during 2004.
We assess that the EBITA-margin, excluding currency effects, will be improved.
The interim report has been issued on April 27, 2004 by the Board of Directors.
The interim report has not been subject to review by the company's auditors.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 2 (15)
- -----------------------------------------------------------------------------------------------
SEK millions, unless Jan 1 - Jan 1 -
otherwise stated Mar 31 Mar 31
2004 2003 2003 2002 2001
- -----------------------------------------------------------------------------------------------
Order intake 3,929 3,378 14,145 14,675 15,894
- -----------------------------------------------------------------------------------------------
Net sales 3,184 2,995 13,909 14,595 15,830
- -----------------------------------------------------------------------------------------------
Adjusted EBITDA 1) 454 396 1,925 2,091 2,141
- -----------------------------------------------------------------------------------------------
Adjusted EBITA 2) 386 321 1,632 1,760 1,740
- -----------------------------------------------------------------------------------------------
Adjusted EBITA2)- margin 12.1% 10.7% 11.7% 12.1% 11.0%
- -----------------------------------------------------------------------------------------------
Result after financial items 212 141 817 460 373
- -----------------------------------------------------------------------------------------------
Return on capital employed3) 23.1% 20.1% 22.2% 20.3% 18.5%
- -----------------------------------------------------------------------------------------------
Return on equity capital3) 15.3% 6.3% 14.6% 4.7% 10.1%
- -----------------------------------------------------------------------------------------------
Solidity 29.9% 29.9% 30.0% 28.6% 20.6%
- -----------------------------------------------------------------------------------------------
Debt ratio, times 0.52 0.74 0.55 0.79 1.57
- -----------------------------------------------------------------------------------------------
Cash flow from operations 323 216 1,489 2,047 1,976
- -----------------------------------------------------------------------------------------------
Investments 44 29 259 277 275
- -----------------------------------------------------------------------------------------------
No. of employees (units) 4) 9,333 9,186 9,358 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
June 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 1 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 number: E-mail: mikael.sjoblom@alfalaval.com
556587-8062
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 3 (15)
Management's discussion and analysis
Orders received
Orders received amounted to SEK 3,929.0 (3,377.7) million for the first quarter.
Excluding exchange rate variations, the order intake for the Group was 22.6
percent higher than the first quarter last year.
Orders received from the after market "Parts & Service" has continued to develop
positively and increased by 5.2 percent compared to the corresponding period
last year excluding exchange rate variations. Its relative share of the group's
total orders received decreased to 24.1 (28.2) percent due to the large increase
in capital sales.
Order backlog
The order backlog at March 31, 2004 was 4,840.1 (4,284.3) million. Excluding
exchange rate variations, the order backlog was 19.8 percent higher than the
order backlog at March 31, 2003 and 31.4 percent higher than the order backlog
at the end of 2003. 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 amounted to SEK 3,183.9 (2,994.7) million for the first quarter of
this year. Excluding exchange rate variations, the invoicing was 12.1 percent
higher than the first quarter last year.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 4 (15)
Comments on the Income Statement
As a basis for comments on the various main items of the income statement,
please find below a comparison between January - March for 2004 and 2003 and
January - December for 2003 and 2002:
Income statement analysis
Jan 1 - Jan 1 - Jan 1 - Jan 1 -
Mar 31 Mar 31 Dec 31 Dec 31
SEK millions 2004 2003 2003 2002
- -----------------------------------------------------------------------------------------------
Net sales 3,183.9 2,994.7 13,909.3 14,594.9
Adjusted gross profit 1,243.2 1,197.4 5,235.8 5,651.7
- - in % of net sales 39.0 40.0 37.6 38.7
Expenses -789.0 -801.4 -3,310.6 -3,560.7
- - in % of net sales 24.8 26.8 23.8 24.4
Adjusted EBITDA 454.2 396.0 1,925.2 2,091.0
- - in % of net sales 14.3 13.2 13.8 14.3
Depreciation -68.5 -74.7 -293.1 -331.3
Adjusted EBITA 385.7 321.3 1,632.1 1,759.7
- - in % of net sales 12.1 10.7 11.7 12.1
Amortisation of goodwill * -123.8 -123.7 -494.1 -506.7
Comparison distortion items -13.5 3.6 5.6 -29.2
-----------------------------------------------------------
EBIT 248.4 201.2 1,143.6 1,223.8
- -----------------------------------------------------------------------------------------------
* Including amortisation of step-up values
The first three months generated a gross profit of SEK 1,168.5 (1,120.3)
million. Excluding the amortisation of SEK 74.7 (77.1) million on step up
values, the adjusted gross profit is SEK 1,243.2 (1,197.4) million. This
corresponds to 39.0 (40.0) percent of net sales.
Sales and administration expenses amounted to SEK 720.7 (762.9) million.
Excluding exchange rate variations and the acquisition of bioKinetics, sales and
administration expenses were 4.1 percent lower than the corresponding period
last year.
The costs for research and development have amounted to SEK 92.4 (95.7) million,
corresponding to 2.9 (3.2) percent of net sales.
Adjusted EBITDA amounted to SEK 454.2 (396.0) million for the first quarter. The
adjusted EBITA amounted to SEK 385.7 (321.3) million. The adjusted EBITA margin
thereby increased to 12.1 (10.7) percent.
The result has been affected by comparison distortion items of SEK -13.5 (3.6)
million.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 5 (15)
The divestment of the Tri-Lad operations in Canada has generated a loss
of SEK -15.0 million and the sale of a minor property in Brazil has resulted in
a realised gain of SEK 1.5 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.
Divisional reporting
Equipment division
The Equipment division consists of six customer segments: Comfort &
Refrigeration, Fluids & Utility Equipment, Marine & Diesel, OEM (Original
Equipment Manufacturers), Sanitary Equipment and the aftermarket segment Parts &
Service.
Jan 1- Jan 1- Jan 1- Jan 1-
Mar 31 Mar 31 Dec 31 Dec 31
SEK millions 2004 2003 2003 2002
- --------------------------------------------------------------------------------
Orders received 2,093.8 1,964.9 8,069.9 8,092.6
Order backlog * 1,764.3 1,572.4 1,598.9 1,564.5
Net sales 1,863.8 1,829.5 7,841.8 8,129.6
Operating income 250.7 229.4 1,010.9 1,098.8
- --------------------------------------------------------------------------------
* At the end of the period.
Orders received and net sales (all comments are after adjustment for exchange
rate fluctuations)
Orders received increased by 11.8 percent and net sales increased by 7.0 percent
during the first quarter 2004 compared to the corresponding period last year.
Almost without exception orders received have developed well in all the various
applications and channels served by the Equipment division. Parts & Service has
continued to grow also in the first quarter of 2004. The growth came out of
industrial applications as well as marine.
Operating income (all comments are after adjustment for exchange rate
fluctuations)
The increase in operating income during the first quarter 2004 compared to the
corresponding period 2003 is mainly due to higher gross margin by SEK 33.7
million, partly offset by a negative translation impact from exchange rates.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 6 (15)
Process Technology division
The Process Technology division consists of five customer segments: Energy &
Environment, Food Technology, Life Science, Process Industry and the aftermarket
segment Parts & Service.
Jan 1- Jan 1- Jan 1- Jan 1-
Mar 31 Mar 31 Dec 31 Dec 31
SEK millions 2004 2003 2003 2002
- --------------------------------------------------------------------------------
Orders received 1,805.1 1,395.9 5,990.6 6,488.1
Order backlog * 3,026.9 2,697.0 2,398.0 2,752.6
Net sales 1,314.0 1,143.5 5,993.6 6,377.1
Operating income 67.1 15.1 351.5 537.5
- --------------------------------------------------------------------------------
* At the end of the period.
Orders received and net sales (all comments are after adjustment for exchange
rate fluctuations)
Orders received increased by 37.0 percent and net sales increased by 21.8
percent during the first quarter 2004 compared to the corresponding period last
year. Excluding the acquisition of bioKinetics, the corresponding figures are
33.4 percent and 14.0 percent.
All segments in the Process Technology division have reported an increase in
orders received compared to the first quarter 2003.
Operating income (all comments are after adjustment for exchange rate
fluctuations)
The increase in operating income during the first quarter 2004 compared to the
corresponding period 2003 is foremost due to higher gross margin by SEK 71.8
million, partly offset by a negative translation impact from exchange rates.
Operations division and Other
Operations are responsible for procurement, production and logistics. Other is
referring to corporate overhead and non-core businesses.
Jan 1- Jan 1- Jan 1- Jan 1-
Mar 31 Mar 31 Dec 31 Dec 31
SEK millions 2004 2003 2003 2002
- --------------------------------------------------------------------------------
Orders received 30.1 16.9 84.8 94.1
Order backlog * 48.9 14.9 24.2 23.0
Net sales 6.1 21.7 73.9 88.2
Operating income -55.9 -46.9 -224.4 -383.3
- --------------------------------------------------------------------------------
* At the end of the period.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 7 (15)
Reporting by geographical markets
The Group's secondary segments are geographical markets. All comments are after
considering exchange rate variations.
Orders received
Orders received increased substantially in North America, Asia, Europe and
Africa and increased in Oceania, whereas orders received decreased slightly in
Latin America during the first quarter 2004 compared to the corresponding period
last year.
Net sales
The invoicing increased substantially in Central and Eastern Europe, Asia, North
America and Oceania and increased in Western Europe, the Nordic countries and
Latin America, whereas the invoicing decreased in Africa during the first
quarter 2004 compared to the corresponding period last year.
Presentation of geographical markets
- ----------------------------------------------------------------------------------------------------------------------
Net sales
Jan 1 - Jan 1 - Jan 1 - Jan 1 -
Mar 31 Mar 31 Dec 31 Dec 31
2004 2003 2003 2002
SEK SEK SEK SEK
Consolidated in millions % in millions % in millions % in millions %
- ----------------------------------------------------------------------------------------------------------------------
Customers in
Sweden 220.2 6.9% 198.8 6.6% 893.2 6.4% 835.1 5.7%
Other EU 1,098.5 34.5% 1,072.7 35.8% 4,727.2 33.9% 4,953.1 33.9%
Other Europe 367.1 11.5% 289.3 9.7% 1,567.8 11.3% 1,497.8 10.3%
USA 500.4 15.7% 492.6 16.4% 2,159.0 15.5% 2,638.7 18.1%
Other North America 57.4 1.8% 82.4 2.8% 315.0 2.3% 423.5 2.9%
Latin America 129.0 4.1% 127.2 4.3% 553.6 4.0% 626.7 4.3%
Africa 34.4 1.1% 22.0 0.7% 182.7 1.3% 69.6 0.5%
Asia 688.4 21.6% 659.8 22.0% 3,252.7 23.4% 3,296.6 22.6%
Oceania 88.5 2.8% 49.9 1.7% 258.1 1.9% 253.8 1.7%
--------------------------------------------------------------------------------------------
Total 3,183.9 100.0% 2,994.7 100.0% 13,909.3 100.0% 14,594.9 100.0%
- ----------------------------------------------------------------------------------------------------------------------
Consolidated financial result and net income
The financial net has amounted to SEK -46.3 (-73.7) 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 -12.5 (-46.1) million, interest
on the bond loan of SEK -32.9 (-36.0) million and a net of dividends and other
interest income and interest costs of SEK -0.9 (8.4) million. The decrease in
interests to the banking syndicate between 2004 and 2003 is mainly due the
cancellation of the previous interest rate swaps that were requested by the
previous banking syndicate.
The net of realised and unrealised exchange rate differences amounts to SEK 10.3
(13.5) million.
The result after financial items increased to SEK 212.4 (141.1) million.
Income taxes were SEK -87.4 (-54.0) million. The difference between the first
quarter of 2004 and 2003 is primarily due to utilisation of loss carry forwards
during 2003 and losses in a few individual countries during 2004.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 8 (15)
The parent company's result after financial items was SEK 3.4 (3.8) million, out
of which net interests were SEK 3.4 (4.0) million and other 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 March 31, 2004
named as co-defendant in a total of 131 asbestos-related lawsuits with a total
of approximately 20,000 plaintiffs. The lawsuits filed in Mississippi account
for approximately 99 percent 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 defence costs.
During the first quarter 2004 Alfa Laval Inc has been named as co-defendant in
an additional 16 lawsuits with a total of 453 plaintiffs. During the first
quarter 8 lawsuits involving 30 plaintiffs have been resolved. This gives a
grand total of 78 lawsuits that have been resolved. Alfa Laval has furthermore
been dismissed from the proceedings in respect of approximately 270 plaintiffs
in ongoing multiple plaintiffs lawsuits.
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 increased to SEK 255.6 (143.2)
million during the first quarter, out of which divestments generated cash of SEK
13.7 (26.0) million.
Working capital increased by SEK 49.1 million during the first quarter. The
corresponding figure for 2003 was an increase by SEK 95.7 million.
Investments in property, plant and equipment amounted to SEK 43.9 (28.5) million
during the first quarter. Depreciations, excluding allocated step up values,
amounted to SEK 68.5 (74.7) million during the period.
Cash and bank
The Group's cash and bank amounted to SEK 484.3 (520.0) 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 32.5 (69.3) million. The company
is not a wholly owned subsidiary of the Alfa Laval Special Finance Group. It is
owned to 64.1 percent.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 9 (15)
Borrowings and net debt
Debt table
- -------------------------------------------------------------------------------------------------------------
Consolidated
March 31 March 31 December 31 December 31
SEK in millions 2004 2003 2003 2002
- -------------------------------------------------------------------------------------------------------------
Credit institutions 2,708.3 3,016.2 2,530.7 3,360.2
Bond loan 1,086.5 1,123.2 1,064.8 1,127.6
Capitalised financial leases 11.1 23.4 13.6 24.7
Interest-bearing pension liabilities 5.2 6.1 5.2 6.1
-----------------------------------------------------------------
Total debt 3,811.1 4,168.9 3,614.3 4,518.7
Cash, bank and current deposits 1,421.6 847.4 1,213.2 1,020.2
-----------------------------------------------------------------
Net debt 2,389.5 3,321.5 2,401.1 3,498.5
- -------------------------------------------------------------------------------------------------------------
During the first quarter a voluntary amortisation of SEK - (227.7) million was
made on the syndicated loan.
During the first quarter Alfa Laval has re-purchased bonds at the prevailing
market rate for a face value of SEK - (11.7) million. The difference between the
higher market value and the face value was SEK - (1.9) 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 271.3 million through voluntary amortisation of EUR 87.4 million
and reduction through exchange rate movements of EUR 65.2 million. The other
part is a revolving working capital facility of EUR 150 million, which was
unutilised as of March 31, 2004. 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.
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
9,168 (5,432) on March 31, 2004. The two largest owners are Industri Kapital and
Tetra Laval, where 17.9 (26.9) percent are owned by the partnerships that are
controlled by Industri Kapital 2000 Ltd, United Kingdom and 17.7 (17.7) percent
are owned by Tetra Laval B.V., the Netherlands. Next to the two largest owners
there are eight institutional investors with ownership in the range of 5.3 to
2.0 percent. These ten largest owners own 62.9 (68.0) percent of the shares.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 10 (15)
Acquisitions and disposals
As earlier communicated Alfa Laval has initiated new negotiations with the
former owner Kinetics Group Inc. See further developments after March 31, 2004
under events after the balance sheet date below.
On December 5, 2003 an asset purchase agreement was signed between the
subsidiary Tri-Lad Inc in Canada and local management of the company whereby all
non-financial assets were sold to local management. The closing date was January
30, 2004. Tri-Lad Inc is selling equipment to the oil & gas industry and was a
non-core activity within Alfa Laval. It has been up for sale since several
years. The divestment of the Tri-Lad operations has generated a loss of SEK
- -15.0 million.
Accounting principles
The same accounting principles and accounting estimates have been applied in the
first quarter interim report 2004 as for the annual report for 2003.
Date for the next financial report
The interim report for the second quarter 2004 will be published on August 16,
2004.
Events after the balance sheet date
Alfa Laval has in a press release on April 7, 2004 communicated its decision to
file a lawsuit against the former owner of bioKinetics Inc. Alfa Laval made
public in December 2003 that the company had decided to initiate new
negotiations with the former owner of bioKinetics Inc. This decision was based
on the fact that Alfa Laval suspected irregularities in the accounting of
certain customer projects in the acquired US company. The negotiations have not
led to any settlement. Alfa Laval has therefore decided to file a lawsuit
against the former owner of bioKinetics Inc and certain individuals.
On April 15, 2004 Alfa Laval has signed a new senior credit facility of USD 325
million and EUR 150 million with a banking syndicate. The former facility was
transferred to a multi currency revolving credit facility. The new facility
provides increased flexibility, improved terms and extended security of funding.
On April 27, 2004 the Alfa Laval Board of Directors has appointed Lars Renstrom
new CEO and President of the Alfa Laval Group.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 11 (15)
CONSOLIDATED CASH-FLOW STATEMENTS
Jan 1 - Jan 1 - Jan 1 - Jan 1 -
Mar 31 Mar 31 Dec 31 Dec 31
Amounts in SEK millions 2004 2003 2003 2002
- -------------------------------------------------------------------------------------------------------------------------
Cash flow from operating activities
Operating income 248.4 201.2 1,143.6 1,223.8
Adjustment for depreciation 192.3 198.4 787.2 838.0
Adjustment for other non-cash items 11.8 -3.8 22.1 35.0
----------------------------------------------------------------
452.5 395.8 1,952.9 2,096.8
Taxes paid -80.6 -84.6 -268.6 -396.2
Cash flow from operations before working capital 371.9 311.2 1,684.3 1,700.6
Changes in working capital:
(Increase)/decrease of current receivables 296.3 247.1 -25.7 340.0
(Increase)/decrease of inventories -245.7 -262.5 -17.2 140.4
Increase/(decrease) of liabilities -99.7 -80.3 -152.9 -134.2
----------------------------------------------------------------
-49.1 -95.7 -195.8 346.2
----------------------------------------------------------------
Cash flow from operating activities 322.8 215.5 1,488.5 2,046.8
================================================================
Cash flow from investing activities
Investments in fixed assets -43.9 -28.5 -258.5 -276.7
Divestment of fixed assets 3.6 26.0 40.1 120.7
Additional purchase price -8.2 - - -367.5
Acquisition of businesses - -40.9 -289.5 -135.7
Reduction of purchase price - - - 81.6
Divestment of businesses 10.1 - - -
Provisions -28.8 -28.9 50.5 29.8
----------------------------------------------------------------
Cash flow from investing activities -67.2 -72.3 -457.4 -547.8
================================================================
Cash flow from financing activities
Financial net, paid -45.8 -21.3 -237.1 -590.1
New issue of shares - - - 819.0
Paid group contribution - - -53.4 -
(Increase)/decrease of other financial assets -250.3 159.0 -256.9 -84.2
Capitalised financing costs, acquisition loans - - - -39.7
Increase/(decrease) of liabilities to credit institutions -59.7 -346.7 -454.8 -1,548.2
----------------------------------------------------------------
Cash flow from financing activities -355.8 -209.0 -1,002.2 -1,443.2
================================================================
Net increase (decrease) in cash and bank -100.2 -65.8 28.9 55.7
Cash and bank at the beginning of the year 554.6 605.9 605.9 666.4
Translation difference in cash and bank 29.9 -20.1 -80.2 -116.2
Cash and bank at the end of the period 484.3 520.0 554.6 605.9
----------------------------------------------------------------
Cash flow per share (SEK) -12.2 -8.0 3.5 10.7
Average number of shares* 8,191,000 8,191,000 8,191,000 5,229,137
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 12 (15)
CONSOLIDATED INCOME STATEMENT
Jan 1 - Jan 1 - Jan 1 - Jan 1 -
Mar 31 Mar 31 Dec 31 Dec 31
Amounts in SEK millions 2004 2003 2003 2002
- -----------------------------------------------------------------------------------------------------
Net sales 3,183.9 2,994.7 13,909.3 14,594.9
Cost of goods sold -2,015.4 -1,874.4 -8,976.3 -9,262.2
-----------------------------------------------------------
Gross profit 1,168.5 1,120.3 4,933.0 5,332.7
- -----------------------------------------------------------------------------------------------------
Sales costs -537.7 -537.2 -2,245.8 -2,115.1
Administration costs -183.0 -225.7 -865.8 -1,026.8
Research and development costs -92.4 -95.7 -368.1 -355.2
Comparison distortion items -13.5 3.6 5.6 -29.2
Other operating income 70.8 55.6 242.4 268.7
Other operating costs -115.2 -73.1 -366.4 -663.6
Amortisation of goodwill -49.1 -46.6 -191.3 -187.7
-----------------------------------------------------------
Operating income 248.4 201.2 1,143.6 1,223.8
- -----------------------------------------------------------------------------------------------------
Dividends 0.6 5.1 6.9 7.8
Interest income 74.4 74.4 267.5 322.7
Interest expense -111.0 -139.6 -601.3 -803.5
Comparison distortion items - - - -290.7
-----------------------------------------------------------
Result after financial items 212.4 141.1 816.7 460.1
- -----------------------------------------------------------------------------------------------------
Minority share in subsidiaries' income -13.7 -9.7 -41.6 -33.7
Taxes -87.4 -54.0 -134.5 -218.2
-----------------------------------------------------------
Net income for the year 111.3 77.4 640.6 208.2
- -----------------------------------------------------------------------------------------------------
Earnings per share (SEK) 13.59 9.45 78.21 39.83
Average number of shares * 8,191,000 8,191,000 8,191,000 5,229,137
* The average number of shares has been changed through new issue of shares.
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 13 (15)
In order to illustrate the quarterly development, the income statement analysis
is shown also for the last ten quarters:
Income statement analysis
2004 2003 2002 2001
SEK millions Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
- --------------------------------------------------------------------------------------------------------------------------------
Net sales 3,183.9 4,086.3 3,426.3 3,402.0 2,994.7 4,175.1 3,503.7 3,654.2 3,261.9 4,738.6
Adjusted gross profit 1,243.2 1,385.0 1,318.9 1,334.5 1,197.4 1,539.1 1,394.7 1,426.4 1,291.5 1,679.5
- - in % of net sales 39.0 33.9 38.5 39.2 40.0 36.9 39.8 39.0 39.6 35.4
Expenses -789.0 -843.5 -817.4 -848.3 -801.4 -920.5 -902.6 -896.7 -840.9 -1,079.8
- - in % of net sales 24.8 20.6 23.9 24.9 26.8 22.1 25.8 24.6 25.8 22.8
Adjusted EBITDA 454.2 541.5 501.5 486.2 396.0 618.6 492.1 529.7 450.6 599.7
- - in % of net sales 14.3 13.3 14.6 14.3 13.2 14.8 14.0 14.5 13.8 12.6
Depreciation -68.5 -75.5 -70.7 -72.2 -74.7 -81.8 -78.6 -83.1 -87.8 -103.3
Adjusted EBITA 385.7 466.0 430.8 414.0 321.3 536.8 413.5 446.6 362.8 496.4
- - in % of net sales 12.1 11.4 12.6 12.2 10.7 12.8 11.8 12.2 11.1 10.5
Amortisation of goodwill * -123.8 -124.5 -124.1 -121.8 -123.7 -125.9 -128.7 -125.7 -126.4 -127.9
Comparison distortion items -13.5 2.0 0.0 0.0 3.6 -0.7 15.9 0.5 -44.9 5.3
-----------------------------------------------------------------------------------------------
EBIT 248.4 343.5 306.7 292.2 201.2 410.2 300.7 321.4 191.5 373.8
- --------------------------------------------------------------------------------------------------------------------------------
* Including amortisation of step-up values
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 14 (15)
CONSOLIDATED BALANCE SHEET
Mar 31 Mar 31 Dec 31 Dec 31
Amounts in SEK millions 2004 2003 2003 2002
- ----------------------------------------------------------------------------------------------------------------
ASSETS
Non-current assets:
Intangible assets 4,249.6 4,585.3 4,200.0 4,703.3
Property, plant and equipment 2,763.3 2,997.4 2,756.5 3,082.7
Financial assets 683.5 670.0 666.2 751.9
Current assets
Inventories 2,545.2 2,568.6 2,217.8 2,279.0
Accounts receivable 2,591.6 2,442.1 2,463.3 2,504.0
Other receivables 1,090.2 916.3 1,167.6 1,085.5
Other current deposits 937.3 327.4 658.6 414.3
Cash and bank 484.3 520.0 554.6 605.9
TOTAL ASSETS 15,345.0 15,027.1 14,684.6 15,426.6
- ----------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 4,586.5 4,486.3 4,402.5 4,413.0
Minority interest 128.8 115.2 104.2 108.2
Provisions for:
Pensions and similar commitments 786.0 711.5 754.8 720.6
Deferred taxes 890.2 1,001.9 817.0 990.3
Other 903.6 950.7 891.2 989.3
-------------------------------------------------------------
2,579.8 2,664.1 2,463.0 2,700.2
Non-current liabilities:
Liabilities to credit institutions 2,548.2 2,825.5 2,427.0 3,105.8
Bond loan 1,086.5 1,123.2 1,064.8 1,127.6
-------------------------------------------------------------
3,634.7 3,948.7 3,491.8 4,233.4
Current liabilities:
Liabilities to credit institutions 160.1 190.7 103.7 254.4
Accounts payable 1,240.6 1089.1 1,199.4 1,173.2
Advances from customers 582.7 621.9 512.1 571.3
Other liabilities 2,431.8 1,911.10 2,407.9 1,972.9
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 15,345.0 15,027.1 14,684.6 15,426.6
- ----------------------------------------------------------------------------------------------------------------
Alfa Laval Special Finance AB Interim report January 1 - March 31, 2004
Page 15 (15)
CHANGES IN CONSOLIDATED EQUITY
Amounts in SEK millions
- ------------------------------------------------------------------------------------------------------------------------------
Jan 1 - Mar 31 Jan 1 - Mar 31 Jan 1 - Dec 31 Jan 1 - Dec 31
2004 2003 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------
At the beginning of the period 4,402.5 4,413.0 4,413.0 3,628.9
New issue of shares - - - 819.0
Group contribution - - -613.4 -53.4
Translation difference 72.7 -4.1 -37.7 -189.7
Net income for the period 111.3 77.4 640.6 208.2
------------------------------------------------------------------------------
At the end of the period 4,586.5 4,486.3 4,402.5 4,413.0
- ------------------------------------------------------------------------------------------------------------------------------
The share capital of SEK 819,100,000 is divided into 8,191,000 shares at par
value SEK 100.