Alfa Laval AB (publ) Interim report April 1 - June 30, 2009

“Sales amounted to SEK 6.7 billion, which resulted in a continued strong EBITA of SEK 1.2 billion and an operating margin of 17.4 percent. Alfa Laval generated a very strong cash flow in the quarter. Order intake was SEK 5.2 billion, a volume decline by 9 percent compared to the first quarter 2009. The lower demand was due to a lower activity level in the economy, difficulties for our customers to get financing and postponed investment decisions. The effects of the savings initiatives are substantial. As earlier communicated additional measures are continuously implemented, on top of the programme initiated in January, to adjust capacity and costs to current market conditions. These actions cause a one time cost of SEK 225 million in the quarter. Yearly savings from all initiated actions are estimated to about SEK 850 million.” Lars Renström, President and CEO

Second quarter: Order intake decreased by 37.3 percent * to SEK 5,188 (7,066) million. Net sales decreased by 15.1 percent * to SEK 6,746 (6,855) million. Adjusted EBITA was SEK 1,175 (1,585) million, including positive foreign exchange effects of SEK 74 million. Adjusted EBITA-margin was 17.4 (23.1) percent. Restructuring costs of SEK 225 million have been charged to the P&L. Result after financial items was SEK 846 (1,456) million. Result after tax amounted to SEK 637 (1,038) million. Earnings per share amounted to SEK 1.49 (2.41). Cash flow from operating activities was SEK 1,295 (1,200) million. Six months: Order intake decreased by 34.4 percent * to SEK 11,041 (14,499) million. Net sales decreased by 10.3 percent * to SEK 13,669 (13,122) million. Adjusted EBITA was SEK 2,430 (2,995) million, including positive foreign exchange effects of SEK 198 million. Adjusted EBITA-margin was 17.8 (22.8) percent. Restructuring costs of SEK 225 million have been charged to the P&L. Result after financial items was SEK 1,960 (2,712) million. Result after tax amounted to SEK 1,401 (1,936) million. Earnings per share amounted to SEK 3.29 (4.47). Cash flow from operating activities was SEK 2,353 (1,929) million. * excluding exchange rate variations Outlook for the third quarter “We expect demand during the third quarter to be on about the same level as during the second quarter 2009.” (Earlier published outlook (April 20, 2009): “We expect demand during the second quarter to be in line with or somewhat lower than the first quarter 2009.”)