Alfa Laval : Board of directors' reasoned statement in respect of 18 4 ABL
March 20, 2024 at 05:42 am EDT
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N.B. The English text is an unofficial translation. In case of any discrepancies between the Swedish text and the English translation the Swedish text shall prevail.
Statement by the Board of Directors concerning the proposed dividend according to Chapter 18, Section 4 of the Swedish Companies Act
In accordance with Chapter 18, Section 4 of the Swedish Companies Act, the Board of Directors hereby gives its reasoned statement as a basis for the Annual General Meeting's resolution on dividend.
The Board of Directors' opinion is that the Alfa Laval Group, during the period 2003 - 2023, has reported considerable stability with regard to profits from operating activities and generation of cash flows from such operation activities. The Group's financial position has continuously improved during the same period.
With regard to the prospects for the future of the business, reference is made to the CEO's statement in the Annual Report for 2023.
In order to consider the interests of various groups in relation to the company, the Board of Directors deems that the following key indicators constitute a relevant basis for evaluation of the proposal for dividend that has been presented to the Annual General Meeting.
Debt ratio
Interest coverage ratio
Net Debt to EBITDA
Debt profile (unutilized facilities and remaining duration of commitments)
Unrestricted equity in the parent company
With regard to the above mentioned key indicators, the status of the Alfa Laval Group is presented below as per the end of 2023 and after payment of the proposed dividend, everything else the same.
December
31,
December 31,
2023
2023,
After dividend
Debt ratio, times
0,27
0,38
Interest coverage ratio, times
23,1
20,6
Net Debt to EBITDA, times
0,85
1,11
Debt profile - unutilized facilities, SEK million
7 736
4 636
Debt profile - remaining duration of commitments in
April 2028 (4 years and 4 months)
years
Unrestricted equity in the parent company, SEK
9 293
6 193
million
It is the opinion of the Board of Directors that the Group's financial position is on par with other Swedish industrial companies with comparable activities, risk profile and size. The
N.B. The English text is an unofficial translation. In case of any discrepancies between the Swedish text and the English translation the Swedish text shall prevail.
Board of Directors also deems that the Group's ability to meet its obligations in short and long term, including the need for capital expenditures, is not negatively affected by the proposed dividend.
To summarize, the Board of Directors deems that the proposed dividend is justified considering the demands that the nature, scope and risks of the business impose on the size of the shareholders' equity and considering the company's and the Group's consolidated requirements, liquidity and financial position in general.
Lund, March 2024
The Board of Directors of Alfa Laval AB (publ)
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Alfa Laval AB specializes in the design, manufacturing and marketing of equipment and industrial systems for heating, cooling, separating and transporting of substances (oil, water, chemical and food substances, drinks, drugs, etc.). The activity is organized mainly arounf two families of products:
- solid and liquid treatment systems: systems for cooling, evaporation, extraction, drying, etc. intended primarily for the food processing, pharmaceutical, petrochemical, and energy sectors;
- production process equipment: decanters, heat exchangers, pumps, valves, air and liquid filtration systems, etc.
Net sales are distributed geographically as follows: Sweden (2.2%), Europe (32.5%), China (14.1%), South Korea (5.5%), Asia (18.2%), United States (16.7% ), North America (2.1%), Latin America (5.6%), Africa (1.9%) and Oceania (1.2%).
ALFA LAVAL AB 
