Alfa Laval

Quarterly Report • Jul 23, 2024

Report for Q2 2024

Highlights

• ∙ Order intake was SEK 18.9 (18.4) billion, an organic increase of 4 percent.
• ∙ Net sales was SEK 17.5 (15.9) billion, an organic increase of 11 percent.
• ∙ Adjusted EBITA increased by 23 percent to SEK 2.9 (2.4) billion, corresponding to a margin of 16.7 (15.0) percent.
• ∙ Strong cash flow from operating activities of SEK 2.6 (1.3) billion.
• ∙ Earnings per share of SEK 4.08 (3.63).

Summary

	Q2			Jan-Jun
SEK millions	2024	2023	%	% *	2024	2023	%	% *
Order intake	18,916	18,405	3	4	37,189	36,790	1	2
Net sales	17,530	15,880	10	11	32,435	29,991	8	9
Adjusted EBITA **	2,932	2,378	23		5,367	4,765	13
- adjusted EBITA margin (%) **	16.7	15.0			16.5	15.9
Result after financial items	2,390	2,003	19		4,639	4,051	15
Net income for the period	1,696	1,515	12		3,388	3,030	12
Earnings per share (SEK)	4.08	3.63	12		8.15	7.27	12
Cash flow from operating activities	2,633	1,342	96		4,383	2,346	87
Return on capital employed (%) **					22.1	18.6
Net debt*** to EBITDA, times **					0.83	1.49

* Organic change. ** Alternative performance measures. *** Nebt debt including lease liabilities.

The totals in the tables and calculations do not always add up due to rounding differences on individual lines. Meaning each subtotal or line figure corresponds with its original source and rounding, which can result in differences with reported totals which aggregate the exact figures before rounding.

Comment from Tom Erixon President and CEO

Outlook for the third quarter

"We expect demand in the third quarter to be on a somewhat lower level compared to the second quarter."

Earlier published outlook (April 25, 2024): "We expect demand in the second quarter to be somewhat higher than in the first quarter."

"The second quarter developed positively in most dimensions with a record order intake of almost 19 BSEK, an improved margin to 16.7 percent, and a continued progression of return on capital employed to just above 22 percent. Overall deliveries and project execution was in line with expectations, resulting in an invoicing growth of 10 percent. Market conditions are expected to remain on a high level during the third quarter.

The Marine division had another strong order intake quarter with a growth of 30 percent, driven by high demand in the ship contracting market. The order book in the division now stands at 23 BSEK, not so long ago the normal level for the entire group. The recovery from the margin pressure during late 2022 and first half of 2023 is now completed, and the order book supports a stable development well into 2025.

The Energy division had a relatively stable quarter in the context of the weakness in the HVAC market, but orders still declined 12 percent compared to the same quarter last year. The order decline in HVAC applications have to some degree been offset by progress in other applications and service. The next quarter is expected to be the bottom of this cycle for the division even if the heat pump market may take a bit longer to recover. Margin improvement in several areas largely compensated for the low utilization effects in the HVAC segment. The margin decreased from the elevated level in 2023 mainly related to non-recurring revaluation effects.

The business environment in the Food & Water division was mixed, with a continued improvement in the transactional part of the portfolio, especially in the important distributor channel. The large project order intake was lower as expected, following the elevated order intake of Desmet last year. In all, order intake decreased 10 percent. Investment decisions for large projects

were slow in some areas, most notably in the US. Invoicing recovered well after the weaker first quarter and grew 10 percent on the back of a solid order book and improved short-cycle demand. As expected, the margin recovered with increased volumes and in all a well-executed quarter.

Alfa Laval´s sustainability agenda is broad and progressed well in the quarter. The safety at work improved further in the quarter and the lost time injury frequency rate was at 2.2, somewhat above the ambition level for the year. The carbon intensity in scope 1 and 2 is constantly reduced with the ambition to be carbon neutral in 2030. In addition to energy efficiency measures the investment program to replace gas in our operations are clarified and included in the medium-term capex plan. In the scope 3 area the sourcing program for carbon-neutral metals is progressing with an expected ramp-up period starting in 2026-27.

Alfa Laval, together with many technology-driven companies, is investing in our own climate footprint as well as in the technology required to drive the energy transition. Today the technology platforms for electrification, hydrogen, carbon capture, and new fuels are ready and supported by strong industrial cluster, often working together to accelerate needed solutions. Still, the pace of the global energy transition is lacking the needed momentum at this moment. Short-term focus on energy efficiency can partly compensate for a longer transition phase, but it can never solve the whole climate challenge."

Tom Erixon, President and CEO

Financial overview

Order intake

Orders received was SEK 18,916 (18,405) million in the second quarter and SEK 37,189 (36,790) million in the first six months 2024.

Orders received from Service constituted 27.1 (27.8) percent of the Group's total orders received during the second quarter and 28.3 (27.5) percent during the first six months 2024.

Order backlog

Excluding currency effects and adjusted for acquisition and divestment of businesses the order backlog was 11.2 percent higher than the order backlog at June 30, 2023 and 10.6 percent higher than the order backlog at the end of 2023.

Net sales

Net invoicing was SEK 17.530 (15,880) million for the second quarter and SEK 32.435 (29,991) million for the first six months 2024.

Net invoicing relating to Service constituted 29.3 (30.1) percent of the Group's total net invoicing in the second quarter and 30.0 (30.7) percent in the first six months 2024.

Organic: Change excluding acquisition/divestment of businesses. Structural: Acquisition/divestment of businesses. Service: Parts and service.

Order bridge

SEK millions/%	Q2	Jan-Jun
2023	18,405	36,790
Organic	3.5%	2.1%
Structural	0.1%	0.1%
Currency	-0.8%	-1.1%
Total	2.8%	1.1%
2024	18,916	37,189

Order bridge Service

SEK millions/%	Q2	Jan-Jun
2023	5,114	10,132
Organic	0.7%	4.1%
Structural	0.4%	0.4%
Currency	-0.7%	-0.8%
Total	0.4%	3.7%
2024	5,133	10,511

Sales bridge

SEK millions/%	Q2	Jan-Jun
2023	15,880	29,991
Organic	11.2%	9.0%
Structural	0.1%	0.1%
Currency	-0.9%	-1.0%
Total	10.4%	8.1%
2024	17,530	32,435

Sales bridge Service

SEK millions/%	Q2	Jan-Jun
2023	4,786	9,219
Organic	7.2%	5.9%
Structural	0.8%	0.4%
Currency	-0.7%	-0.6%
Total	7.3%	5.7%
2024	5,135	9,744

Income analysis

	Q2		Jan-Jun		Jan-Dec	Last 12
SEK millions	2024	2023	2024	2023		2023 months
Net sales	17,530 15,880		32,435	29,991	63,598	66,042
Adjusted gross profit*	6,047	5,385	11,493	10,492	21,849	22,850
- adjusted gross
margin (%)*	34.5	33.9	35.4	35.0	34.4	34.6
Expenses**		-2,699 -2,623	-5,292	-5,000	-10,069	-10,361
- in % of net sales	15.4	16.5	16.3	16.7	15.8	15.7
Adjusted EBITDA*	3,348	2,762	6,201	5,492	11,780	12,489
- adjusted EBITDA
margin (%)*	19.1	17.4	19.1	18.3	18.5	18.9
Depreciation	-416	-384	-834	-727	-1,559	-1,666
Adjusted EBITA*	2,932	2,378	5,367	4,765	10,221	10,823
- adjusted EBITA
margin (%)*	16.7	15.0	16.5	15.9	16.1	16.4
Amortisation of step-up values	-190	-242	-427	-483	-965	-909
Operating income	2,742	2,136	4,940	4,282	9,256	9,914

* Alternative performance measures. ** Excluding comparison distortion items.

Quarter on quarter invoicing increased with 10.4 percent and sequentially with 17.6 percent, adding an additional SEK 554 million to the Adjusted EBITA result. Food & Water recovered a good part of the sales volume that was deferred from the first quarter and Marine has stepped up its invoicing of the accumulated order backlog. Service revenues were 7 percent up on last year and accounted for 29 (30) percent of the total invoicing which from a mix perspective had only a nominally dilutive impact compared to last year. Revenues in large project business had an important impact on the revenue mix and a positive contribution to profitability. Current backlog supports a continued similar revenue mix and remains in phase with current commodity and production input prices. The aggregated result on the adjusted gross margin is an increase of 0.6 percentage points to 34.5 percent. Expenses in relation to revenues decreased with 1.1 percentage points, down to 15.4 percent for the Group. Some imbalances between actual demand and manufacturing capacity remain, although well under control and addressed in accordance with future demand expectations. Adjusted EBITA increased with 23 percent to SEK 2,932 million in the quarter.

Sales and administration expenses were SEK 2,592 (2,342) million during the second quarter and SEK 5,049 (4,521) million during the first six months 2024. The figures for the first six months corresponded to 15.5 (15.1) percent of net sales. Sales and administration expenses increased by 10.7 percent during the second quarter and by 11.7 percent during the first six months 2024 compared to the corresponding periods last year.

The costs for research and development during the first six months of 2024 corresponded to 2.5 (2.6) percent of net sales. The costs for research and development decreased with 1.4 percent during the second quarter and increased by 3.7 percent during the first six months 2024 compared to the corresponding period last year.

Income bridge

SEK millions	Q2	Jan-Jun
Adjusted EBITA 2023	2,378	4,765
Volume	588	932
Mix	97	143
Costs	-119	-418
Currency	-12	-55
Adjusted EBITA 2024	2,932	5,367

Net sales

Adjusted EBITA

Earning s per share in the quarter amounted to SEK 4.08 (3.63) and 8.15 (7.27) for the first six months 2024. The corresponding figure excluding amortisation of step -up values and the corresponding tax, was SEK 8.95 (8.19) for the first six months .

Consolidated financial net

	Q2		Jan	-Jun	Jan -Dec	Last 12
SEK millions	2024	2023	2024	2023	2023	months
Financial net	-352	-133	-300	-231	-606	-675
Net of interests	-82	-84	-149	-148	-350	-351
- of which interest expense on loans	-68	-75	-136	-129	-295	-302
Dividends and other financial income	3	7	7	8	13	12
Net of exchange rate differences	-273	-55	-158	-91	-269	-336

Taxes

The tax on the result after financial items was SEK -694 ( -488) million in the second quarter and SEK -1,251 ( -1,021) million in the first six months 2024. The tax rate was 27 percent for the Group in the first six months which is above the guidance range of 24 -26 percent driven by more aggressive tax audits by local tax authorities in some jurisdictions which affect the normal rate with one off settlements .

Cash flow

Continued good cash conversion in the quarter resulted in a SEK 2,633 (1,342) million operating cash flow and SEK 4,383 (2,346) million in the first six months.

Depreciation, excluding allocated step -up values, was SEK 416 (384) million in the quarter and SEK 834 (727) million during the first six months 2024.

Acquisition of businesses and release of acquisition related withheld amounts during the first six months 2024 amounted to SEK -50 ( -100) million of which SEK -2 ( -14) million is related to this quarter.

Financing activities affecting cash flow were substantial in the quarter with the payment of dividend to our shareholders with SEK 3,100 million, repayment at maturity of a corporate bond of EUR 300 million, and short -term financing to bridge short term liquidity of SEK 1,600 million which is expected to be completely repaid before year end. Total cash flow in the second quarter was SEK -2,716 ( -1,510) million with a balance of cash and cash equivalents at the end of the quarter of SEK 3,766 (3,467) million .

Key figures

	Jun 30	Dec 31
	2024	2023	2023
Return on capital employed (%) ¹ ⁾	22.1	18.6	21.0
Return on equity (%)² ⁾	17.9	15.9	17.6
Solidity (%) ³ ⁾	46.3	41.7	45.4
Net debt to EBITDA, times ¹ ⁾ ⁵ ⁾	0.83	1.49	0.85
Debt ratio, times ¹ ⁾	0.27	0.44	0.27
Number of employees ⁴ ⁾	21,767	20,655	21,321

1) Alternative performance measure. 2) Net income in relation to average equity, calculated on 12 months' revolving basis, expressed in percent. 3) Equity in relation to total assets at the end of the period, expressed in percent. 4) At the end of the period. 5) Net debt including lease liabilities.

Energy division

Highlights

• Order intake decreased by 12 percent to SEK 4.8 (5.4) billion, with an organic decline of 11 percent.
• Net sales decreased by 0.4 percent to SEK 4.9 (4.9) billion, with an organic growth of 0.5 percent.
• Adjusted EBITA of SEK 935 (974) million, corresponding to a margin of 19.1 percent.

		Q2 Jan-Jun		Jan-Dec		Last 12
SEK millions	2024	2023	2024	2023	2023	months
Orders received	4,771	5,413	9,950	10,850	20,414	19,514
Order backlog¹⁾	10,340	10,716	10,340	10,716	10,075	10,340
Net sales	4,891	4,910	9,534	9,106	19,269	19,697
Operating income²⁾	922	957	1,826	1,977	3,927	3,776
Adjusted EBITA³⁾	935	974	1,853	2,011	3,986	3,828
Adjusted EBITA margin⁴⁾	19.1%	19.8%	19.4%	22.1%	20.7%	19.4%
Depreciation	134	82	230	162	372	440
Amortisation	13	17	27	34	59	52
Investments⁵⁾	321	235	636	442	992	1,186
Assets¹⁾	20,180	19,873	20,180	19,873	19,263	20,180
Liabilities¹⁾	7,431	7,997	7,431	7,997	7,433	7,431
Number of
employees¹⁾	5,918	5,534	5,918	5,534	5,902	5,918

1) At end of period. 2) Excluding comparison distortion items. 3) Alternative performance measure. 4) Adjusted EBITA/net sales. 5) Excluding new leases.

Quarterly development

Order intake by business unit Jan-Jun 2024

Brazed & Fusion Bonded Heat Exchangers

Welded Heat Exchangers

Energy Separation

Trend indicators by end market

		% of Total YTD 24/23	Trend*
HVAC & Ref	25%	-31%
Fossil base fuels & power	24%	8%
Process industry	22%	-9%
Light industry & tech	20%	10%
Clean fuels, power & chemicals	8%	12%

*Sequential change between Q1 2024 and Q2 2024.

Order intake*

The Energy Division reported a lower order intake compared to the same quarter last year. Demand remained strong in data centres as the industry is adopting more energy efficient cooling solutions and service continued to show a positive development. However, this could not fully compensate for a weaker base business and project delays, especially in cleantech, due to increased project costs as a result of inflation and higher interest rates.

HVAC** order intake declined due to lower sales of heat pumps and inventory adjustments by key customers, following policy changes in the European energy market. Other segments of the HVAC industry continued to face low demand due to continued uncertainty in the construction sector. Refrigeration was stable compared to the same quarter last year. Orders increased in light industry & tech, driven by high demand in the data centre and semi-conductor industries. Order intake declined in process industry, mainly in pulp & paper, chemicals and petrochemicals. The transition to net zero drives investments in mining of many minerals, supporting growth in the quarter, with water treatment in mining also developing positively. After a number of quarters of growth, order intake in oil and gas and refinery decreased compared to the same quarter last year. Middle East, India and China remained strong, but demand slowed down in the US. The Americas, India and Middle East reported strong order intake, with good activity levels in most industries. Order intake in Europe and rest of Asia declined, reflecting the continued low activity level in the construction industry and project delays in the cleantech business areas.

Service demand was on par with last year, with a positive development in most geographical areas

Net sales*

Most markets showed a positive development in sales both in service and capital sales. The exception was HVAC, which had lower deliveries to Heat pump manufacturers. The mix is slightly negative with a higher share of project sales.

Adjusted EBITA***

Increased sales activities, OPEX cost related to investment, and inflationary pressure resulted in increasing overhead cost compared to last year. Currency has a small negative impact on the overall result.

* Comments excluding currency effects.

** Heating, Ventilation & Air Conditioning.

*** Comments relating to income bridge.

Order bridge

SEK millions/%	Q2	Jan-Jun
2023	5,413	10,850
Organic	-11.0%	-7.4%
Structural	0.2%	0.2%
Currency	-1.1%	-1.1%
Total	-11.9%	-8.3%
2024	4,771	9,950

Sales bridge

SEK millions/%	Q2	Jan-Jun
2023	4,910	9,106
Organic	0.5%	5.6%
Structural	0.2%	0.2%
Currency	-1.1%	-1.1%
Total	-0.4%	4.7%
2024	4,891	9,534

Order intake split, Jan-Jun 2024

30% 70%

Service Capital Sales

Income bridge

SEK millions	Q2	Jan-Jun
Adjusted EBITA 2023	974	2,011
Volume	16	209
Mix	28	-111
Costs	-70	-232
Currency	-13	-24
Adjusted EBITA 2024	935	1,853

Food & Water division

Highlights

• Order intake decreased by 10 percent to SEK 6.3 (6.9) billion, with an organic decline of 9 percent.
• Net sales increased by 10 percent to 7.0 (6.4) billion, with an organic growth of 10 percent.
• Adjusted EBITA of SEK 1,077 (962) million, corresponding to a margin of 15.3 percent.

	Q2		Jan-Jun		Jan-Dec	Last 12
SEK millions	2024	2023	2024	2023	2023	months
Orders received	6,273	6,941	12,630	12,717	26,368	26,281
Order backlog¹⁾	16,125	15,454	16,125	15,454	15,977	16,125
Net sales	7,023	6,412	12,286	12,134	25,280	25,432
Operating income²⁾	1,016	901	1,698	1,868	3,698	3,528
Adjusted EBITA³⁾	1,077	962	1,819	1,989	3,942	3,772
Adjusted EBITA margin⁴⁾	15.3%	15.0%	14.8%	16.4%	15.6%	14.8%
Depreciation	122	107	260	236	502	526
Amortisation	61	61	121	121	244	244
Investments⁵⁾	122	108	209	193	472	488
Assets¹⁾	22,239	22,555	22,239	22,555	20,376	22,239
Liabilities¹⁾	9,203	8,485	9,203	8,485	8,295	9,203
Number of
employees¹⁾	8,349	8,217	8,349	8,217	8,283	8,349

1) At end of period. 2) Excluding comparison distortion items. 3) Alternative performance measure. 4) Adjusted EBITA/net sales. 5) Excluding new leases.

Quarterly development

Order intake by business unit Jan-Jun 2024

Trend indicators by end market

		% of Total YTD 24/23	Trend*
Oils & Fats	27%	-5%
Dairy	19%	5%
Prep. Food & Beverage	18%	4%
Ethanol, Starch & Sugar	9%	-5%
Waste & Water	7%	-5%
Pharma & Biotech	7%	-2%
Protein	6%	6%
Brewery	4%	-12%
Other	3%	6%

*Sequential change between Q1 2024 and Q2 2024.

Order intake*

Orders declined compared to the same quarter last year. This is primarily explained by lower order intake for Desmet. Geographically, the US, Latin America and Asia contracted. The latter however showed a mixed picture with lower demand in South-East Asia and India, with China slightly recovering.

Order intake for oils and fats declined due to lower demand for traditional applications. Demand remained strong for HVO (Hydrotreated Vegetable Oil), most of which for the European market. Protein grew, with contribution from large orders in both Southern and Eastern Europe. Dairy grew, showing real strength in Europe and even more so in Asia, but with a decline in both Latin and North America. Orders in pharma and biotech grew, mainly in North America and Asia and then in particular China. Europe also reported growth. After over a year of saturation post the strong pandemic years, the sector has seen a certain uptick in global investments. Ethanol orders were lower compared to last year, with less large orders. The driver for the sector, a continued strong biofuel demand from higher blending requirements in countries like USA, Brazil and India, however remains. Water and waste declined somewhat with both the large North American market and Europe being down, while Asia continuing to show positive development. The size and timing of when public funds for water investments are made available, determines investments in the industry. Brewery order intake was down compared to last year with few capacity related investments in a consolidating industry. However, replacements, process and yield improving products and solutions continue at a stable pace.

Service contracted after last year's record levels. Activity was clearly higher in pharma and protein, whereas remaining sectors declined. Geographically, Europe and Asia were stable but North America declined.

Net sales*

Net sales grew at a strong pace. After some delays in invoicing in the beginning of the year revenue recognition picked-up in the project business with an increased execution and delivery pace of equipment from a strong order backlog. Geographically, sales developed strongly in North America and Asia, not least in China, whereas Europe as a whole recorded a more or less unchanged level.

Adjusted EBITA**

Adjusted EBITA increased compared to last year, benefitting from strong growth in sales in the transactional as well as in the project business. Mix impact was marginally negative from revenue recognition of larger projects, however with the balance of sales delivering a solid gross margin. Costs were up in the quarter, driven both by inflation and increased activity levels. The net effect of these factors, combined with an immaterial currency impact in the quarter, increased the Adjusted EBITA compared to last year.

* Comments excluding currency effects.

** Comments relating to income bridge.

Order bridge

SEK millions/%	Q2	Jan-Jun
2023	6,941	12,717
Organic	-9.3%	-0.1%
Structural	0.2%	0.2%
Currency	-0.5%	-0.8%
Total	-9.6%	-0.7%
2024	6,273	12,630

Sales bridge

SEK millions/%	Q2	Jan-Jun
2023	6,412	12,134
Organic	10.3%	1.8%
Structural	0.2%	0.2%
Currency	-1.0%	-0.7%
Total	9.5%	1.3%
2024	7,023	12,286

Order intake split, Jan-Jun 2024

26% 74%

Service Capital Sales

Income bridge

SEK millions	Q2	Jan-Jun
Adjusted EBITA 2023	962	1,989
Volume	201	56
Mix	-36	-36
Costs	-46	-180
Currency	-4	-10
Adjusted EBITA 2024	1,077	1,819

Marine division

Highlights

• Order intake increased by 30 percent to SEK 7.9 (6.1) billion, with an organic increase of 31 percent.
• Net sales increased by 23 percent to SEK 5.6 (4.6) billion, with an organic growth of 24 percent.
• Adjusted EBITA of SEK 1,031 (565) million, corresponding to a margin of 18.4 percent.

	Q2		Jan-Jun		Jan-Dec	Last 12
SEK millions	2024	2023	2024	2023	2023	months
Orders received	7,872	6,051	14,609	13,223	23,960	25,346
Order backlog¹⁾	23,004	18,807	23,004	18,807	19,273	23,004
Net sales	5,616	4,558	10,616	8,751	19,049	20,914
Operating income²⁾	917	402	1,648	795	2,178	3,031
Adjusted EBITA³⁾	1,031	565	1,925	1,121	2,836	3,640
Adjusted EBITA margin⁴⁾	18.4%	12.4%	18.1%	12.8%	14.9%	17.4%
Depreciation	87	95	173	164	336	345
Amortisation	114	163	277	326	658	609
Investments⁵⁾	71	50	124	92	336	368
Assets¹⁾	29,880	31,167	29,880	31,167	29,856	29,880
Liabilities¹⁾	8,177	8,145	8,177	8,145	7,998	8,177
Number of employees¹⁾	5,979	5,504	5,979	5,504	5,655	5,979

1) At end of period. 2) Excluding comparison distortion items. 3) Alternative performance measure. 4) Adjusted EBITA/net sales. 5) Excluding new leases.

Quarterly development

Order intake by business unit Jan-Jun 2024

Trend indicators by end market

		% of Total YTD 24/23	Trend*
Ship Building & Shipping	79%	35%
Offshore	9%	-55%
Other	8%	31%
Engine Power	3%	-34%

*Sequential change between Q1 2024 and Q2 2024.

Order intake*

Order intake for the Marine Division was significantly higher compared to the same quarter last year. A continued high demand for marine pumping systems, digital solutions and service more than offset the lower demand levels in offshore, ballast systems and gas systems.

The underlying market sentiment related to the building of new vessels was on a higher level compared to the same period last year. New contracting has been driven primarily by tankers and gas carriers, with a softer start in the container and bulk carrier segments. In addition, the first large cruise ships have been ordered after three-years of low activity post covid. The increased shipbuilding activity has been further supplemented by a continued growing demand for sustainability related solutions which mitigate CO² emissions, including solutions around energy efficiency, low carbon and zero carbon fuels. Demand for ballast water treatment systems has, as expected, eased further as fewer number of vessels remain to be retrofitted before the approaching 2024 regulatory deadline and the addressable market gets more correlated to new vessels being contracted. Multi-fuel capable solutions continue to gain traction, driving demand for the new generation of multi-fuel boilers and alternative fuel supply systems. Offshore orders were at a significantly lower level compared to the same quarter last year as a number of project commencement decisions have been deferred due to constrained supply chains. The underlying market sentiment in this area however remains strong due to stable high oil prices and investments in new projects to safeguard long term energy security.

Service orders grew compared to the same quarter last year. Demand was driven by a good activity level in shipping and due to a growing installed base. Good freight rates in almost all vessel segments and the consequent desire to keep vessel assets in good operational readiness resulted in increased on-board maintenance and higher demand for all service scopes, ranging from spare parts to service.

Net sales*

Net sales were at a higher level than the same quarter last year. Sales were higher for both capital sales and service in almost all product areas except ballast water systems and gas systems.

Adjusted EBITA**

The increased net sales in the quarter had a positive volume effect. The product mix and the good development of capital sales positively influenced the net mix effect. The factory and engineering result was positive due to higher utilization rates. The cost level was higher than last year due to inflationary pressure and a higher activity level.

* Comments excluding currency effects.

** Comments relating to income bridge.

Order bridge

SEK millions/%	Q2	Jan-Jun
2023	6,051	13,223
Organic	30.8%	12.0%
Structural	0.0%	0.0%
Currency	-0.7%	-1.5%
Total	30.1%	10.5%
2024	7,872	14,609

Sales bridge

SEK millions/%	Q2	Jan-Jun
2023	4,558	8,751
Organic	24.0%	22.4%
Structural	0.0%	0.0%
Currency	-0.8%	-1.1%
Total	23.2%	21.3%
2024	5,616	10,616

Order intake split, Jan-Jun 2024

28% 72%

Service Capital Sales

Income bridge

SEK millions	Q2	Jan-Jun
Adjusted EBITA 2023	565	1,121
Volume	348	647
Mix	112	238
Costs	3	-62
Currency	3	-19
Adjusted EBITA 2024	1,031	1,925

Operations and Other

Operations and Other covers procurement and logistics as well as corporate overhead and non-core businesses.

	Q2			Jan-Jun		Last 12
SEK millions	2024	2023	2024	2023	2023	months
Orders received	0	0	0	0	0	0
Order backlog¹⁾	0	0	0	0	0	0
Net sales	0	0	0	0	0	0
Operating income²⁾	-124	-133	-234	-348	-565	-451
Adjusted EBITA³⁾	-122	-132	-232	-346	-561	-447
Depreciation	73	100	171	165	349	355
Amortisation	2	1	2	2	4	4
Investments⁴⁾	227	156	591	262	640	969
Assets¹⁾	1,982	2,219	1,982	2,219	1,986	1,982
Liabilities¹⁾	986	1,022	986	1,022	885	986
Number of employees¹⁾	1,521	1,400	1,521	1,400	1,481	1,521

1) At end of period. 2) Excluding comparison distortion items. 3) Alternative performance measure. 4) Excluding new leases.

Reconciliation between Divisions and Group total

	Q2			Jan-Jun		Last 12
SEK millions	2024	2023	2024	2023	2023	months
Adjusted EBITA
Total for
divisions	2,921	2,369	5,365	4,775	10,203	10,793
Amortisation	-190	-242	-427	-483	-965	-909
Consolidation adjustments *	11	9	2	-10	18	30
Total operating
income	2,742	2,136	4,940	4,282	9,256	9,914
Financial net	-352	-133	-301	-231	-606	-676
Result after financial items	2,390	2,003	4,639	4,051	8,650	9,238
Assets **
Total for divisions	74,281	75,814	74,281	75,814	71,481	74,281
Corporate ***	9,640	8,879	9,640	8,879	10,807	9,640
Group total	83,921	84,693	83,921	84,693	82,288	83,921
Liabilities **
Total for
divisions	25,797	25,649	25,797	25,649	24,611	25,797
Corporate ***	19,302	23,755	19,302	23,755	20,299	19,302
Group total	45,099	49,404	45,099	49,404	44,910	45,099

* Difference between management accounts and IFRS. ** At the end of the period. *** Corporate refers to items in the statement on financial position that are interest bearing or are related to taxes.

Large orders (>EUR 5 million) in the second quarter

Division			Order	Total per Business Unit
	Business Unit	Delivery	amount	Q2 2024	Q2 2023
	Scope of supply	date	SEK millions
Energy
	Energy Separation
	Decanter centrifuges for mining tailings in Morocco.	2025	115	115	-
	Gasketed Plate Heat Exchangers				105
	Welded Heat Exchangers
	Specialized heat exchangers to Net Zero petrochemical facility in North America.	2026	84
	Welded plate heat exchangers to Natural gas production unit in Middle East.	2025	81
	Welded plate heat exchangers to carbon capture facility in Middle East.	2025	89	254	229
Food & Water
	Food Systems
	Protein system for poultry processing in Southern Europe.	2025	64
	HVO* pretreatment plant in Southern Europe.	2027	391	455	146
	Desmet
	Solvent Extraction Equipment for a soy bean plant in the US.	2025	193
	Oil refining equipment for a soy oil refinery in the US.	2025	138
	Handling Equipment for agro products storage.	2025	97	428	1,173
	Decanter				68
Marine
	Heat & Gas Systems				269
	Pumping Systems
	Sea Water Lift and Fire Water pumps to FPSO** project in North
	America.	2025	171
	Aquaculture pumps to government project in Norway.	2026	184	355	251
Total				1,607	2,241

* Hydrogenated vegetable oil.

**Floating Production Storage and Offloading.

Information about products and services

Net sales by product/service *	Q2		Jan-Jun		Jan-Dec	Last 12
SEK millions	2024	2023	2024	2023	2023	months
Own products within:
Separation	2,721	2,535	5,121	4,661	10,312	10,772
Heat transfer	6,656	6,410	12,766	11,992	25,311	26,085
Fluid handling	4,066	3,088	7,711	6,071	13,024	14,664
Marine environmental	774	885	1,495	1,813	3,596	3,278
Other	0	0	0	0	0	0
Associated products	2,164	1,890	3,198	3,449	7,083	6,832
Services	1,150	1,072	2,144	2,005	4,272	4,411
Total	17,530	15,880	32,435	29,991	63,598	66,042

* The split of own products within separation, heat transfer and fluid handling is a reflection of the current three main technologies. Marine environmental is a growing new product area basically outside the main technologies. Other is own products outside these four product areas. Associated products are mainly purchased products that compliment Alfa Laval's product offering. Services cover all sorts of service and service agreements excluding spare parts.

Information about major customers

Alfa Laval does not have any customer that accounts for 10 percent or more of net sales. Tetra Pak within the Tetra Laval Group is Alfa Laval's single largest customer with a volume representing approximately 5 percent of net sales.

Sustainability

Case studies

Safety stand-downs to reduce workplace injuries

In response to not reaching the goal of reducing workplace injuries last year, a plan was developed to further improve safety culture and behaviors.

An example from last quarter's initiatives is safety stand-downs in the factories. For one full day production was halted in 16 of our factories to focus on risk identification, safe behavior and sharing of learnings regarding safety. In each of the 16 factories this has resulted in local plans with clear commitments and responsibilities going forward. The initiative will continue on more sites.

Recycling of metals at end of life of products

Taking responsibility for the total product lifecycle is a key to increase circularity and reduce carbon emissions. For heat exchangers, disc-stack centrifuges and decanter separators at end of life, the existing agreement with Stena Recycling for the recycling of metals from customers in the Nordic countries has been extended. Together with our partner Aperam, we will enable the recycling of metals from disc-stack centrifuges at the end of the product lifetime, from customers around the world. The expansion is stepwise, starting in Europe in 2024 with a plan to expand the offer to customers globally.

Quarterly follow up

• Total energy consumption is down both sequentially and compared to the same quarter last year.
• Reduction of carbon emissions is progressing well aligned with targets.
• Number of Lost Time Injuries up but positive development in the Lost Time Injury Frequency Rate.

Energy

The positive trend in the energy consumption continues, with the total consumption down both sequentially and comparing to the same quarter last year. The reduction is mainly due to the targeted work with energy efficiency at the company sites.

Carbon emissions

Carbon emissions in scope 1 and scope 2 decreased slightly compared to last quarter. Contributing factors are the ongoing phase out of fuel oil and Liquified Petroleum Gases (LPG). There is also a lower consumption of district heating, contributing to lower emissions in the Nordics. The conversion into renewable sources of electricity continue and is contributing to lower Scope 2 emissions.

Health and safety

Despite that the Lost Time Injuries increased slightly in the quarter compared to last, the Lost Time Injury Frequency Rate (last twelve months) continues to improve due to that the number of working hours increased in the quarter. The most severe incident during the quarter involved an employee who seriously injured his fingertip, while inspecting a valve at a customer site. Remaining Lost Time injuries during the quarter are mainly related to slips, trips and falls but also a few injuries while handling tools, equipment and components.

Energy: consumption in relation to turnover

10.0

LTIFR = Number of lost time injuries in time period * 1,000,000 / Worked hours in the period

New products during the second quarter

During the second quarter Alfa Laval has introduced among others the following new products that help our customers to become more energy efficient, reduce their carbon footprint and improve their processes:

1. Alfa Laval PureBallast 3 Ultra

As most of the vessels in the world merchant fleet have now been equipped with ballast water management systems (BWMS), the market needs are lower and many BWMS manufacturers have withdrawn or face an uncertain future. Alfa Laval, by contrast, continues to evolve its leading UV technology and its offering to shipowners and shipyards. PureBallast 3 Ultra answers the needs of today's ballast water management market – and also tomorrow's. Compact and easy to install, the automated inline treatment solution offers unmatched performance in challenging waters with enhanced UV technology and improved filter performance at low power consumption. It is connectivity -ready and designed for a vessel lifetime.

2. Framo Submerged Liquefied Gas pump

As pioneers and leaders in marine pumping systems, Framo continues to set the benchmark for performance and reliability. Leveraging five decades of invaluable pumping expertise, the Framo Submerged Liquefied Gas pump is a fully submerged centrifugal pump meticulously designed for LNG applications.

With a fail -safe design ensuring reliable fuel supply and cargo discharge, the Framo SLG pump sets a new standard in marine pumping technology, reinforcing our commitment to driving efficiency and sustainability in the maritime industry

3. Alfa Laval Hygienic line H5 gasketed plate heat exchange r

The newest addition to the Alfa Laval Hygienic Line is the Alfa Laval H5. Like other plate heat exchangers in the company's premium range, it optimizes process hygiene and energy efficiency. It is designed specifically for small to medium hygienic processing lines across the dairy, brewery, beverage, and pharmaceutical industries. With its unique hygienic design and high thermal efficiency, the Alfa Laval H5 enables manufacturers to transfer energy more efficiently using less water, steel, and cleaning -in -place. This maximizes product safety, uptime and energy efficiency while reducing the environmental footprint of hygienic applications in food and pharmaceutical manufacturing.

4. Alfa Laval SE 43 brazed plate heat exchanger

Alfa Laval SE brazed plate heat exchangers provide efficient heat transfer with a small footprint. They are specifically designed to work as evaporators and condensers in applications such as chillers and heat pumps. The Alfa Laval SE product line is thermally optimized for propane. It offers design and technical features specifically with safety in mind.

Benefits:• Compact • Easy to install • Self -cleaning • Low level of service and maintenance required • All units are pressure and leak tested • Gasket free

1.

3.

4.

Order intake by region

Northern Europe

The region reported a declining order intake compared to the same quarter last year, mainly due to the decline in HVAC and offshore. Energy had strong demand in oil & gas and refinery. Food & Water grew driven by oils & fats and prepared food & beverage. Marine reported a strong underlying demand in shipping. Service was at the same level as last year in all three divisions.

Central and Eastern Europe

The order intake in the region decreased compared to the same quarter last year, mainly due to the decline in HVAC. Energy had strong demand in tech. Food & Water grew driven by protein and prepared food & beverages. Marine noted a weaker demand in shipbuilding and shipping. Service reported growth in Marine.

Southern Europe

The order intake in the region grew double-digit compared to the same quarter last year. Energy reported strong demand in process industry. Food & Water grew driven by oils & fats and protein. Marine reported strong demand in shipping. Service grew in all three divisions.

North America

The region reported a declining order intake compared to the same quarter last year, mainly due to a weaker demand in oils & fats. Energy grew driven by tech and clean fuels & chemicals. Food & Water had a strong underlying demand in prepared food & beverage and dairy. Marine reported growth in shipbuilding and shipping. Service grew in Energy and Marine.

Latin America

The region reported a declining order intake compared to the same quarter last year. Energy grew driven by oil & gas. Food & Water had a strong underlying demand in prepared food & beverage and dairy. Marine grew driven by oil & gas. Service reported growth in all three divisions.

Northeast Asia

The order intake in the region grew double-digit compared to the same quarter last year. Energy reported a strong underlying demand in manufacturing and tech. Food & Water grew driven by pharma and dairy. Marine grew driven by shipbuilding. Service grew in Food & Water and Energy.

Southeast Asia and Oceania

The order intake in the region decreased compared to the same quarter last year. Energy reported strong underlying demand in tech and mining. Food & Water reported strong underlying demand in prepared food & beverage and dairy. Marine grew driven by offshore and shipping. Service grew in Energy and Marine.

India, Middle East and Africa

The order intake in the region was at the same level as last year. Energy grew driven by oil & gas and organic chemicals. Food & Water noted robust underlying demand in ethanol, starch & sugar and prepared food & beverage. Marine noted a weaker demand in oil & gas. Service grew in Marine.

Order intake for the 10 largest markets

Net sales

	Q2			Jan-Jun		Last 12
SEK millions	2024	2023	2024	2023	2023	months
To customers in:
Sweden	303	378	617	722	1,411	1,306
Other EU	3,932	3,987	7,560	7,536	15,590	15,617
Other Europe	1,271	1,255	2,429	2,429	4,895	4,895
USA	3,216	2,749	5,745	5,285	10,613	11,074
Other North America	779	348	1,097	610	1,327	1,813
Latin America	922	836	1,772	1,602	3,578	3,748
Africa	224	327	498	648	1,302	1,153
China	2,704	2,241	4,801	3,903	8,943	9,840
South Korea	1,079	810	1,972	1,608	3,527	3,890
Other Asia	2,867	2,752	5,547	5,265	11,625	11,905
Oceania	233	197	397	383	787	801
Total	17,530	15,880	32,435	29,991	63,598	66,042

Net sales are reported by country on the basis of invoicing address, which is normally the same as the delivery address.

Non-current assets*

	Jun 30	Dec 31
SEK millions	2024	2023	2023
Sweden	3,790	3,004	3,509
Denmark	5,533	5,629	5,354
Other EU	9,427	9,411	9,219
Norway	13,679	14,300	13,689
Other Europe	391	416	391
USA	4,180	4,254	3,961
Other North America	156	163	154
Latin America	333	376	352
Africa	7	8	7
Asia	4,951	4,571	4,808
Oceania	115	118	114
Subtotal	42,562	42,250	41,558
Other long-term securities	576	490	542
Pension assets	308	264	239
Deferred tax asset	1,590	1,710	1,720
Total	45,037	44,714	44,059

* Non-current assets include Intangible assets, Property, plant and equipment and Other non-current assets.

Consolidated cash flows

	Q2		Jan-Jun		Jan-Dec	Last 12
SEK millions	2024	2023	2024	2023	2023	months
Operating activities
Operating income	2,742	2,136	4,940	4,282	9,256	9,914
Adjustment for depreciation and amortisation	606	626	1,261	1,210	2,524	2,575
Adjustment for other non-cash items	-112	21	-85	43	-419	-547
	3,236	2,783	6,116	5,535	11,361	11,942
Taxes paid	-633	-702	-1,127	-1,138	-1,933	-1,922
	2,603	2,081	4,989	4,397	9,428	10,020
Changes in working capital:
Increase(-)/decrease(+) of receivables	-998	-1,146	-1,451	-2,108	-1,319	-662
Increase(-)/decrease(+) of inventories	-58	-597	107	-1,458	-652	913
Increase(+)/decrease(-) of liabilities	982	1,082	738	1,628	2,373	1,483
Increase(+)/decrease(-) of provisions	104	-78	0	-113	-661	-548
Increase(-)/decrease(+) in working capital	30	-739	-606	-2,051	-259	1,186
	2,633	1,342	4,383	2,346	9,169	11,206
Investing activities
Investments in fixed assets (Capex)	-741	-549	-1,559	-989	-2,440	-3,010
Divestment of fixed assets	96	1	140	2	90	228
Acquisition of businesses	-2	-14	-50	-100	-337	-287
	-647	-562	-1,469	-1,087	-2,687	-3,069
Financing activities
Received interests and dividends	49	40	105	67	168	206
Paid interests	-105	-95	-264	-247	-489	-506
Realised financial exchange gains	-104	27	28	48	52	32
Realised financial exchange losses	-166	-49	-202	-135	-536	-603
Dividends to owners of the parent	-3,100	-2,480	-3,100	-2,480	-2,480	-3,100
Dividends to non-controlling interests	-37	-19	-37	-19	-18	-36
Increase(-) of financial assets	-28	-61	-78	-80	-555	-553
Decrease(+) of financial assets	178	18	472	35	11	448
Increase of loans	1,785	2,009	1,876	2,415	2,400	1,861
Amortisation of loans	-3,174	-900	-3,174	-1,800	-4,096	-5,470
	-4,702	-1,510	-4,374	-2,196	-5,543	-7,721
Cash flow for the period	-2,716	-730	-1,460	-937	939	416
Cash and cash equivalents at the beginning of the period	6,543	4,140	5,135	4,352	4,352	3,467
Translation difference in cash and cash equivalents	-61	57	91	52	-156	-117
Cash and cash equivalents at the end of the period	3,766	3,467	3,766	3,467	5,135	3,766
Free cash flow per share (SEK) *	4.81	1.92	7.17	3.29	16.50	20.38
Capex in relation to net sales	4.2%	3.5%	4.8%	3.3%	3.8%	4.6%
Average number of shares	413,326,315	413,326,315	413,326,315	413,326,315	413,326,315	413,326,315

* Free cash flow is an alternative performance measure. It is the sum of cash flows from operating activities, investments and divestments of fixed assets.

Consolidated comprehensive income

	Q2		Jan-Jun		Jan-Dec	Last 12
SEK millions	2024	2023	2024	2023	2023	months
Net sales	17,530	15,880	32,435	29,991	63,598	66,042
Cost of goods sold	-11,673	-10,736	-21,369	-19,982	-42,714	-44,101
Gross profit	5,857	5,144	11,066	10,009	20,884	21,941
Sales costs	-1,779	-1,585	-3,415	-3,090	-6,342	-6,667
Administration costs	-813	-757	-1,634	-1,431	-2,880	-3,083
Research and development costs	-411	-417	-805	-776	-1,563	-1,592
Other operating income	286	214	489	436	932	985
Other operating costs	-399	-482	-775	-898	-1,827	-1,704
Share of result in joint ventures	1	19	14	32	52	34
Operating income	2,742	2,136	4,940	4,282	9,256	9,914
Dividends and other financial income and costs	3	7	7	8	13	12
Interest income and financial exchange rate gains	-61	91	166	204	448	410
Interest expense and financial exchange rate losses	-294	-231	-474	-443	-1,067	-1,098
Result after financial items	2,390	2,003	4,639	4,051	8,650	9,238
Taxes	-694	-488	-1,251	-1,021	-2,269	-2,499
Net income for the period	1,696	1,515	3,388	3,030	6,381	6,739
Other comprehensive income:
Items that will subsequently be reclassified to net income
Cash flow hedges	384	-342	26	-861	54	941
Translation difference	176	762	1,207	-325	-2,040	-508
Deferred tax on other comprehensive income	-170	169	17	326	-31	-340
Sum	390	589	1,250	-860	-2,017	93
Items that will subsequently not be reclassified to net income
Revaluations of defined benefit obligations	-20	25	-40	49	-125	-214
Market valuation of external shares	0	0	0	0	-2	-2
Deferred tax on other comprehensive income	5	-6	10	-13	23	46
Sum	-15	19	-30	36	-104	-170
Comprehensive income for the period	2,071	2,123	4,608	2,206	4,260	6,662
Net income attributable to:
Owners of the parent	1,687	1,502	3,370	3,006	6,330	6,694
Non-controlling interests	10	13	20	24	51	47
Earnings per share (SEK)	4.08	3.63	8.15	7.27	15.31	16.20
Average number of shares	413,326,315	413,326,315	413,326,315	413,326,315	413,326,315	413,326,315
Comprehensive income attributable to:
Owners of the parent	2,060	2,111	4,571	2,179	4,224	6,616
Non-controlling interests	11	12	38	27	36	47

Consolidated financial position

	Jun 30		Dec 31
SEK millions	2024	2023	2023
ASSETS
Non-current assets
Intangible assets	29,979	31,286	29,622
Property, plant and equipment	12,472	10,943	11,769
Other non-current assets	2,586	2,485	2,668
	45,037	44,714	44,059
Current assets
Inventories	14,596	16,032	14,950
Assets held for sale	47	99	59
Accounts receivable	10,558	10,890	10,282
Other receivables	9,453	9,054	6,761
Derivative assets	187	121	314
Other current deposits	279	316	728
Cash and cash equivalents *	3,766	3,467	5,135
	38,885	39,979	38,229
TOTAL ASSETS	83,922	84,693	82,288
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity
Owners of the parent	38,484	34,986	37,033
Non-controlling interests	339	303	345
	38,823	35,289	37,378
Non-current liabilities
Liabilities to credit institutions etc.	10,098	10,419	9,829
Lease liabilities	1,806	1,772	1,473
Provisions for pensions and similar commitments	1,144	1,152	1,090
Provision for deferred tax	2,328	1,994	2,372
Other non-current liabilities	413	583	390
	15,790	15,920	15,154
Current liabilities
Liabilities to credit institutions etc.	1,664	6,076	3,444
Accounts payable	5,864	5,538	5,205
Advances from customers	8,946	8,465	7,975
Other provisions	1,843	2,223	1,757
Other liabilities	10,679	10,076	10,849
Derivative liabilities	312	1,106	526
	29,308	33,484	29,756
Total liabilities	45,098	49,404	44,910
TOTAL SHAREHOLDERS' EQUITY & LIABILITIES	83,922	84,693	82,288

* The item cash and cash equivalents is mainly relating to bank deposits and liquid deposits.

Financial assets and liabilities at fair value	Valuation
	hierarchy	Jun 30		Dec 31
SEK millions	level	2024	2023	2023
Financial assets
Other non-current securities	1 and 2	300	252	280
Bonds and other securities	1	87	115	132
Derivative assets	2	298	142	481
Financial liabilities
Derivative liabilities	2	393	1,256	579
Liability for seller's earn-out possibility	3	88	-	117

Valuation hierarchy level 1 is according to quoted prices in active markets for identical assets and liabilities. Valuation hierarchy level 2 is out of directly or indirectly observable market data outside level 1. Valuation hierarchy level 3 is out of unobservable market data.

Borrowings and net debt

		Jun 30
SEK millions	2024	2023	2023
Credit institutions	1,678	385	145
Swedish Export Credit	2,274	2,356	2,207
Handelsbanken	-	1,179	-
Commercial papers	-	991	-
Corporate bonds	7,810	11,584	10,921
Borrowings	11,762	16,495	13,273
Cash and cash equivalents and current deposits	-4,044	-3,783	-5,863
Net debt excluding lease liabilities*	7,718	12,712	7,410
Lease liabilities	2,642	2,661	2,601
Net debt including lease liabilities*	10,360	15,373	10,011

* Alternative performance measure.

Alfa Laval has a revolving credit facility of EUR 700 million corresponding to SEK 7,968 million on June 30, 2024 with a banking syndicate. The facility has a maturity of five years from April 2023 and includes a possibility to increase it by EUR 200 million. On June 30, 2024 the facility was activated as a short term liquidity bridging utilizing SEK 270 million.

Alfa Laval has two loans of EUR 100 million from Svensk Exportkredit that mature in 2027 and 2028 respectively.

The commercial paper programme of SEK 4,000 million, of which SEK 1,330 million was utilised at June 30, 2024 with varying maturity dates during the second half of 2024.

On June 30, 2024, Alfa Laval had three tranches of corporate bonds listed on the Irish stock exchange. Two of them corresponding to EUR 300 million each that mature in February 2026 and in February 2029 respectively, whereas the third of SEK 1,000 million matures in November 2025

Changes in consolidated equity

	Jan-Jun
SEK millions	2024	2023	2023
At the beginning of the period	37,378	35,704	35,704
Changes attributable to:
Owners of the parent
Comprehensive income
Comprehensive income for the period	4,571	2,179	4,224
Transactions with shareholders
Cancellation of repurchased shares	-	-1	-1
Bonus issue of shares	-	1	1
Increase of ownership in subsidiaries
with non-controlling interests	-19	-95	-93
Dividends	-3,100	-2,480	-2,480
	-3,119	-2,575	-2,573
Subtotal	1,452	-396	1,651
Non-controlling interests
Comprehensive income
Comprehensive income for the period	38	27	36
Transactions with shareholders
Decrease of non-controlling interests	-8	-27	-27
Non-controlling interests in acquired companies	-	-	32
Dividends	-37	-19	-18
	-45	-46	-13
Subtotal	-7	-19	23
At the end of the period	38,823	35,289	37,378

Condensed segment reporting per quarter

Orders received	2024		2023			2022
SEK millions	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Energy	4,771	5,179	4,662	4,902	5,413	5,437	4,407	4,583
Food & Water	6,273	6,357	7,286	6,365	6,941	5,776	5,613	5,611
Marine	7,872	6,736	4,972	5,765	6,051	7,172	5,747	5,008
Operations & Other	0	0	0	0	0	0	0	0
Total	18,916	18,272	16,920	17,032	18,405	18,385	15,767	15,202

Order backlog ^{2024 2023 2022} SEK millions Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Energy 10,340 10,380 10,075 10,676 10,716 10,149 8,517 8,582 Food & Water 16,125 16,719 15,977 15,806 15,454 14,779 14,381 16,158 Marine 23,004 20,603 19,273 19,935 18,807 17,247 14,122 12,870 Operations & Other 0 0 0 0 0 0 0 0 Total 49,469 47,702 45,325 46,417 44,977 42,175 37,020 37,610

Net sales ^{2024 2023 2022}

Last 12 months

June 30, 2024

Last 12 months

SEK millions Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Energy 4,891 4,643 5,196 4,967 4,910 4,196 4,500 3,726 Food & Water 7,023 5,263 7,060 6,086 6,412 5,722 7,407 5,402 Marine 5,616 5,000 5,583 4,715 4,558 4,193 4,577 4,056 Operations & Other 0 0 0 0 0 0 0 0 Total 17,530 14,906 17,839 15,768 15,880 14,111 16,484 13,184

Adjusted EBITA*	2024			2023			2022
SEK millions	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Energy	935	917	900	1,075	974	1,037	746	735
Food & Water	1,077	742	1,011	942	962	1,027	1,292	833
Marine	1,031	894	1,003	712	565	556	664	490
Operations & Other	-122	-109	-97	-118	-132	-214	-151	-113
Total	2,921	2,444	2,817	2,611	2,369	2,406	2,551	1,945

Adjusted EBITA margin*	2024			2023			2022
%	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Energy	19.1	19.8	17.3	21.6	19.8	24.7	16.6	19.7
Food & Water	15.3	14.1	14.3	15.5	15.0	17.9	17.4	15.4
Marine	18.4	17.9	18.0	15.1	12.4	13.3	14.5	12.1
Total	16.7	16.4	15.8	16.6	14.9	17.1	15.5	14.8

* In management accounts, see reconciliation on page 12.

Last 12 months

Per quarter

Parent company

The parent company's result after financial items for the first six months 2024 was SEK 141 (4,092) million, out of which net interests SEK 152 (95) million, realised and unrealised exchange rate gains and losses SEK 0 (0) million, costs related to the listing SEK -4 (-4) million, fees to the Board SEK -5 (-4) million, cost for annual report and annual general meeting SEK -1 (-1) million and other operating income and operating costs the remaining SEK -1 (6) million.

Parent company income *

	Q2		Jan-Jun		Jan-Dec
SEK millions	2024	2023	2024	2023	2023
Administration costs	-4	-3	-10	-9	-14
Other operating income	-3	2	0	7	1
Other operating costs	-1	-1	-1	-1	-4
Operating income	-8	-2	-11	-3	-17
Revenues from interests in group companies	-	4,000	-	4,000	4,037
Interest income and similar result items	71	55	152	95	252
Interest expenses and similar result items	0	0	0	0	-1
Result after financial items	63	4,053	141	4,092	4,271
Change of tax allocation reserve	-	-	-	-	-48
Group contributions	-	-	-	-	1,314
Result before tax	63	4,053	141	4,092	5,537
Tax on this year's result	-13	-11	-29	-19	-271
Net income for the period	50	4,042	112	4,073	5,266

* The statement over parent company income also constitutes its statement over comprehensive income.

Parent company financial position

		Jun 30
SEK millions	2024	2023	2023
ASSETS
Non-current assets
Shares in group companies	4,669	4,669	4,669
Current assets
Receivables on group companies	6,106	7,803	9,266
Other receivables	293	329	116
Cash and cash equivalents	3	3	3
	6,402	8,135	9,385
TOTAL ASSETS	11,070	12,804	14,054
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity
Restricted equity	2,387	2,387	2,387
Unrestricted equity	6,306	8,101	9,293
	8,693	10,488	11,680
Untaxed reserves
Tax allocation reserves, taxation 2018-2024	2,341	2,293	2,341
Current liabilities
Liabilities to group companies	34	20	30
Accounts payable	0	0	0
Other liabilities	2	3	3
	36	23	33
TOTAL EQUITY AND LIABILITIES	11,070	12,804	14,054

Owners and shares

Owners and legal structure

Alfa Laval AB (publ) is the parent company of the Alfa Laval Group. The company had 55,551 (54,333) shareholders on June 30, 2024. The largest owner is Winder Holding AG, Switzerland, who owns 29.5 (29.5) percent. Next to the largest owner, there are nine institutional investors with ownership in the range of 7.4 to 1.5 percent. These ten largest shareholders owned 63.1 (61.5) percent of the shares.

Acquisitions of businesses

On March 14, 2024, Alfa Laval acquired the remaining 10.3 percent of StormGeo's subsidiary Climatempo in Brazil from the minority owners. Alfa Laval's ownership thereby increased from 89.7 percent to 100 percent. The transaction is reported as a change within the equity.

Risks and other

Material factors of risk and uncertainty

The main factors of risk and uncertainty facing the Group concern the business cycle, the consequences of Russia's war on Ukraine and other geo-political tensions, the price development of metals, inflationary pressures, the interest rate development and volatile fluctuations in major currencies. It is the company's opinion that the description of risks made in the Annual Report for 2023 is still correct.

Russia's war on Ukraine

The ongoing conflict has resulted in that Alfa Laval has ceased all commercial activities in Russia. Alfa Laval's assessment is that the longer-term implications of the war are of such a magnitude that the company in the fourth quarter 2022 provided for the entire closure of operations.

Sanctions

The current geopolitical environment has resulted in several sanction packages imposed on several countries where conflicts are ongoing. Alfa Laval follows and enforces all sanction imposed by the European Union as well as all US and other sanctions that are applicable. The significantly increased amount of sanctioned entities together with the sophisticated circumvention attempts, make the assurance work more demanding.

Asbestos-related lawsuits

The Alfa Laval Group was as of June 30, 2024 named as a codefendant in a total of 401 asbestos-related lawsuits with a total of approximately 401 plaintiffs. Alfa Laval strongly believes the claims against the Group are without merit and intends to vigorously contest each lawsuit.

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 Group's financial condition or results of operation.

Accounting principles

The interim report for the second quarter 2024 is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting principles are according to IFRS (International Financial Reporting Standards) as adopted by the European Union. In the report, alternative performance measures are used. See the Annual Report 2023 for definitions. Alfa Laval follows the Guidelines on Alternative Performance Measures issued by ESMA (European Securities and Markets Authority).

"Q2" and "Second quarter" refer to the period April 1 to June 30. "Jan-Jun" and "First six months" refer to the period January 1 to June 30. "Jan-Dec" and "Full year" refers to the period January 1 to December 31. "Last 12 months" refers to the period July 1, 2023 to June 30, 2024. "The corresponding period last year" refers to the second quarter 2023.

"Currency effects" only relate to translation effects, whereas "foreign exchange effects" also relate to transactional effects. "Mix" in the operating income bridge also includes a price effect. Comparison distortion items are reported in the comprehensive income statement on each concerned line but are specified on page 4 (when applicable).

The totals in the tables and calculations do not always add up due to rounding differences on individual lines. Meaning each subtotal or line figure corresponds with its original source and rounding, which can result in differences with reported totals which aggregate the exact figures before rounding.

The accounting and valuation principles of the parent company comply with the Swedish Annual Accounts Act and the recommendation RFR 2 Accounting for legal entities issued by the Council for Financial Reporting in Sweden.

The Q2 2024 report has not been subject to review by the company's auditors.

The interim report has been issued at CEST 07.30 on July 23, 2024 by the Board of Directors and the President and CEO.

The Board of Directors and the President and CEO assure that the report for the first six months gives a true and fair view of the operations, financial position and results for the company and the consolidated Group and describes material factors of risk and uncertainty facing the company and the companies that are part of the Group.

Lund, July 23, 2024,

President and CEO

Dennis Jönsson Chairman	Lilian Fossum Biner	Nadine Crauwels
Henrik Lange	Bror Garcia Lantz	Ray Mauritsson
Anna Müller	Henrik Nielsen	Johan Ranhög
Finn Rausing	Jörn Rausing	Ulf Wiinberg
Tom Erixon

Alfa Laval AB (publ) Box 73 SE-221 00 Lund Sweden Corporate registration number: 556587-8054

Visiting address: Rudeboksvägen 1 Tel: + 46 46 36 65 00 Website: www.alfalaval.com

For more information, please contact: Johan Lundin, Head of Investor Relations

Phone: +46 46 36 65 10, Mobile: +46 730 46 30 90, E-mail: johan.lundin@alfalaval.com

Date for the next financial reports Alfa Laval will publish financial reports at the following dates: Interim report for the third quarter October 24, 2024 Interim report for the fourth quarter February 5, 2025

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at CEST 07.30 on July 23, 2024.

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