Alfa Laval 2023 – Ten-year overview

Ten-year overview

Ten-year overview
Consolidated
SEK millions, unless otherwise stated	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Profit and loss
Net sales	63,598	52,135	40,911	41,468	46,517	40,666	35,314	35,634	39,746	35,067
Comparison distortion items	–	-767	-192	-796	189	151	–	-1,500	–	-320
Operating income	9,256	6,519	6,126	5,580	7,198	5,831	4,589	2,989	5,717	4,667
Financial net	-606	-340	16	-603	23	65	-218	336	-273	-550
Result after financial items	8,650	6,179	6,142	4,977	7,221	5,896	4,371	3,325	5,444	4,117
Taxes	-2,269	-1,610	-1,341	-1,397	-1,713	-1,359	-1,383	-1,013	-1,583	-1,149
Net income for the year	6,381	4,569	4,801	3,580	5,508	4,537	2,988	2,312	3,861	2,968

Financial position
Goodwill	25,069	26,258	22,480	19,080	21,112	20,537	19,775	20,436	19,498	20,408
Other intangible assets	4,553	5,159	3,441	2,204	3,134	3,873	4,692	5,946	6,556	7,898
Property, plant and equipment	11,769	10,710	9,075	8,321	8,943	5,732	4,851	4,940	4,773	5,004
Other non-current assets	2,668	2,666	3,216	3,633	2,081	1,958	1,654	2,100	1,804	2,092
Inventories	14,950	14,775	10,525	9,223	10,077	9,253	8,424	7,831	7,405	7,883
Current receivables	17,416	17,018	11,977	10,631	12,582	11,807	8,808	8,431	8,964	9,791
Current deposits	728	311	291	2,618	873	617	1,208	1,075	1,021	697
Cash and cash equivalents	5,135	4,352	3,356	5,150	5,594	4,295	3,137	2,619	1,876	2,013
TOTAL ASSETS	82,288	81,249	64,361	60,860	64,396	58,072	52,549	53,378	51,897	55,786

Equity	37,378	35,704	32,344	29,071	27,747	23,599	20,500	20,276	18,423	17,202
Provisions for pensions etc.	1,090	1,192	1,907	2,494	2,321	2,118	2,297	2,425	1,931	2,221
Provisions for taxes	2,372	2,293	1,838	1,553	1,662	1,945	2,100	2,722	2,925	3,074
Other non-current liabilities	1,863	2,139	1,928	2,259	2,571	802	677	636	521	660
Non-current loans	9,829	13,362	3,059	8,043	10,600	8,540	11,092	12,169	12,484	16,454
Current liabilities	29,756	26,559	23,285	17,440	19,495	21,068	15,883	15,150	15,613	16,175
TOTAL EQUITY & LIABILITIES	82,288	81,249	64,361	60,860	64,396	58,072	52,549	53,378	51,897	55,786

Changes in accounting standards

A reader of the ten-year overview should observe that accounting standards have changed repeatedly over this period of time. The major changes are the following.

During 2019 IFRS 16 ”Leases” was implemented, which meant that right-of use assets and lease liabilities increased by SEK 2,766 million as per January 1, 2019 in connection with the initial application.

Ten-year overview
Consolidated
SEK millions, unless otherwise stated	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Key ratios
Orders received	70,742	58,645	45,718	39,833	44,119	45,005	36,628	32,060	37,098	36,660
Order backlog at year end	45,325	37,020	22,954	18,969	21,551	23,168	18,289	16,870	20,578	22,293
EBITA	10,221	7,462	6,922	6,435	8,178	6,869	5,610	4,680	6,811	5,571
EBITDA	11,780	8,911	8,113	7,569	9,251	7,495	6,239	5,323	7,478	6,136
EBITA-margin %	16.1%	14.3%	16.9%	15.5%	17.6%	16.9%	15.9%	13.1%	17.1%	15.9%
EBITDA-margin %	18.5%	17.1%	19.8%	18.3%	19.9%	18.4%	17.7%	14.9%	18.8%	17.5%
Adjusted EBITA	10,221	8,229	7,114	7,231	7,989	6,718	5,610	5,553	6,811	5,891
Adjusted EBITDA	11,780	9,678	8,305	8,365	9,062	7,344	6,239	6,196	7,478	6,456
Adjusted EBITA-margin %	16.1%	15.8%	17.4%	17.4%	17.2%	16.5%	15.9%	15.6%	17.1%	16.8%
Adjusted EBITDA-margin %	18.5%	18.6%	20.3%	20.2%	19.5%	18.1%	17.7%	17.4%	18.8%	18.4%
Profit margin %	13.6%	11.9%	15.0%	12.0%	15.5%	14.5%	12.4%	9.3%	13.7%	11.7%

Excl. goodwill and step-up values:
Capital turnover rate, times	3.4	3.5	3.8	3.9	4.4	7.4	5.7	8.6	10.6	7.9
Capital employed	18,509	15,087	10,839	10,751	10,649	5,474	6,201	4,146	3,734	4,447
Return on capital employed %	55.2%	49.5%	63.9%	59.9%	76.8%	125.5%	90.5%	112.9%	182.4%	125.3%

Incl. goodwill and step-up values:
Capital turnover rate, times	1.3	1.2	1.2	1.2	1.3	1.3	1.1	1.2	1.3	1.3
Capital employed	48,753	43,060	34,677	33,678	35,550	30,729	31,698	30,663	31,512	27,259
Return on capital employed %	21.0%	17.3%	20.0%	19.1%	23.0%	22.4%	17.7%	15.3%	21.6%	20.4%

Return on equity %	17.6%	13.5%	15.8%	12.7%	21.3%	20.3%	13.9%	11.8%	21.7%	17.6%
Solidity %	45.4%	43.9%	50.3%	47.8%	43.1%	40.6%	39.0%	38.0%	35.5%	30.8%
Net debt *	10,011	13,070	7,024	3,635	8,175	6,985	8,200	9,619	11,688	15,068
Net debt to EBITDA, times *	0.85	1.47	0.87	0.48	0.88	0.93	1.31	1.81	1.56	2.46
Debt ratio, times *	0.27	0.37	0.22	0.13	0.29	0.30	0.40	0.47	0.63	0.88
Interest coverage ratio, times	23.1	27.9	38.4	27.3	32.8	39.3	28.4	24.5	22.3	18.2
Cash flow from:
operating activities	9,169	3,291	5,264	7,723	5,223	4,883	4,463	4,979	5,850	5,123
investing activities	-2,687	-5,518	-5,025	-1,058	-1,027	-1,293	-721	-795	-710	-14,970
financing activities	-5,543	3,093	-2,081	-6,917	-2,945	-2,445	-3,159	-3,566	-5,229	10,250
Investments	2,440	1,853	1,229	1,232	1,337	1,490	675	617	674	603
Average number of employees	20,803	19,002	17,419	17,160	17,387	16,785	16,521	17,305	17,486	17,109
Earnings per share, SEK	15.31	10.89	11.38	8.47	13.08	10.77	7.09	5.46	9.15	7.02
Free cash flow per share, SEK **	16.50	3.52	9.71	15.76	9.28	8.38	9.09	10.49	12.40	10.96

* Lease liabilities have increased by SEK 2,766 million as per January 1, 2019 due to the initial application of IFRS 16 Leases, which affects the net debt at December 31, 2019.

** Free cash flow is the sum of cash flows from operating activities, investments and divestments of fixed assets.

Observe that certain financial measures above constitute alternative performance measures.