Summary of the business update during Alfa Laval’s Capital Markets Day

At Alfa Laval’s Capital Markets Day today in Copenhagen, Denmark, the company started with a business update.
“The order intake for capital equipment in the Process Technology Division during October came in lower than we expected” said Lars Renström, CEO and President of Alfa Laval. “This is only one month’s order intake and it is too early to tell if this is an effect of the increased macro economic uncertainty or deferred purchase decisions”.
Lars Renström also made a summary of the acquisitions during 2007 that have added three percent of growth on an annual basis.

Alfa Laval repeated that the company does not see any very large orders in the Energy segment, meaning orders above SEK 100 million. The investment levels in the market for renewable fuels are down. During the last twelve months bio ethanol and bio diesel represented an order intake for Alfa Laval of approximately SEK 1.4 billion. The company believes that this will go down substantially. In addition to that the heat pump market is down.

“The order intake for capital equipment in the Process Technology Division during October came in lower than we expected”, said Lars Renström, CEO and President of Alfa Laval. “This is only one month’s order intake and it is too early to tell if this is an effect of the increased macro economic uncertainty or deferred purchase decisions”.

During the business update Lars Renström also made a summary of the acquisitions during 2007 that have added three percent of growth on an annual basis including the acquisition of the Finnish company Fincoil, last Friday.

“Time to market is an import activity to support profitable growth and a positive price development”, Lars Renström said. “Our goal is to decrease the time to targeted pay-back with 25 percent and to increase the newness, products less than five years old, with 50 percent.”
Alfa Laval also described its internal work in the environmental area. The company aims to decrease its CO2-emissions with 15 percent between 2007 and 2011.

Thomas Thuresson, Alfa Laval’s CFO, said that the company believes that it will have the opportunity to generate a free cash flow during 2008 of approximately SEK 2 billion. He also specified the content of the company’s record order back log of SEK 15.3 billion, with SEK 9 billion to be delivered after December 31, 2007.

All presentations can be found on www.alfalaval.com – “Investors”.


About Alfa Laval
Alfa Laval is a leading global provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling.
The company’s equipment, systems and services are dedicated to assisting customers in optimizing the performance of their processes. The solutions help them to heat, cool, separate and transport products in industries that produce food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar and ethanol.
Alfa Laval’s products are also used in power plants, aboard ships, in the mechanical engineering industry, in the mining industry and for wastewater treatment, as well as for comfort climate and refrigeration applications.
Alfa Laval’s worldwide organization works closely with customers in nearly 100 countries to help them stay ahead in the global arena.
Alfa Laval is listed on the Nordic Exchange, Nordic Large Cap, and, in 2006, posted annual sales of about SEK 20 billion (approx. 2,2 billion euros). The company has some 11,000 employees.

www.alfalalval.com

For more information please contact:

Peter Torstensson
Vice President, Communications
Alfa Laval
Tel: + 46 46 36 72 31
Mobile: +46 709 33 72 31

Mikael Sjöblom
Investor Relations Manager
Alfa Laval
Tel: +46 46 36 74 82
Mobile: +46 709 78 74 82