Food & Water Division
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1 Alfa Laval
2 Food & Water Division Nish Patel Alfa Laval Group Alfa Laval Alfa Laval
3 Food & Water Division Gasketed Heat Exchangers Welded Heat Exchangers Brazed Heat Exchangers Spiral Heat Exchangers Decanters High Speed Separators Membranes Fusion Bonded Heat Exchangers Scraped Surface Heat Exchangers Systems High speed separators Decanters Food systems Hygienic fluid handling Food heat transfer Valves Automation solutions Pumps Tank Equipment Installations material
4 Food & Water Division by numbers - Order intake (OI) based on LTM September 30, 2017, Order intake: SEK Bn 12.3 (+8%*) Split by type of orders* OI by Business units* OI by industry* Sales: SEK Bn 11.8 (+3%*) Capital sales High Speed Sep. Food Service Decanters Beverages Fluid Handling Pharma Food Heat Transfer Water Food Systems *) Compared with WY 2016, fixed rates + Increase Decrease = Unchanged (+/- 3 %)
5 Industry focus - What does this mean in the Food & Water Division Dairy Brewery Ethanol, Sugar, Starch Edible Oil Alfa Laval Slide 5
6 Brewery Alfa Laval Slide 6
7 CAGR consumption, 2016 to 2020 CAGR consumption, 2016 to 2020 Brewery growth is regionally tiered Africa Middle East Asia Latin & North Africa America North America Australasia Western Europe Eastern Europe Global Alfa Laval Slide 7 Source: Canadean, BU Brewery analysis Source: Canadian, BU Brewery analysis Source: Canadean, BU Brewery analysis
8 CAGR consumption, 2016 to 2020 Brewery industry trends Alfa Laval Slide 8 Source: Canadean, BU Brewery analysis Source: Canadean, BU Brewery analysis
9 The brewing process Brewhouse Mash & wort production Coldblock Yeast handling & fermentation Filtering Clarification, blending & carbonation Treatment Bright beer & de-alcoholization Packaging Pasteurization, filtration & filling Utilities CIP, deaeration & cooling Alfa Laval Slide 9
10 Innovation tracks Dry-hopped beers Extremely popular Rapidly growing demand worldwide Larger breweries Moving into the craft/specialty beer market Demand for specialty hops rising Prices for dry hop also rising Breweries looking to improve yields Alfa Laval Slide 10
11 Innovation; Alfa Laval Iso Mix Faster process - from 7-10 to 2 days Fewer tanks - from 5 to 2 tanks Reduced losses - from 10-15% down to 2-3% Alfa Laval Slide 11
12 Innovation; Disc stack separator Patent design Power reduction Increase capacity Increase cleanability Alfa Laval Slide 12
13 Edible Oil Alfa Laval Slide 13
14 Edible oil industry drivers Structure Population Urbanisation Living standard Technology Increased Efficiency Capacity Expansion Reduce use of water Consolidation Healthy living Alfa Laval Slide 14
15 Oil demand continues to grow Source: Oil World, September, 2016 Alfa Laval Slide 15
16 Edible oil process overview. Crush & Extract Clarify Degum Neutralize Dewax Bleach Deodorize Modify Biodiesel Crude Palm Oil Olive Oil Avocado Oil Degumming Neutralisation Dewaxing Bleaching to remove impurities Deodorization to remove volatile components and thermally stabilize Modify by fractionation, or hydrogenation to produce liquid oils and fats with specific melting behaviour Pre-treatment Glycerol Esterification Yellow Fats Alfa Laval Slide 16
17 Soya bean project in Brazil SEK 125 million (June 2017) Process lines: - Degumming & neutralization - Double washing section - Double bleaching - Deodorization - Post stripping Core Products: - Alfa Laval Disc stack separators - Alfa Laval Plate Heat Exchangers - Alfa Laval Aalborg industrial boiler - Alfa Laval pumps Service - Performance agreement for separators Alfa Laval Slide 17
18 Innovation; Decanters, olive oil Optimized for high oil recovery Increased yield Increased capacity Gentle treatment for premium quality oil Alfa Laval Slide 18
19 In summary - Food & Water Division Food & Water outlook positive High pace of innovation Sustainability enabler - Optimize resource use & increase yield - Water re-use - Energy savings Alfa Laval Slide 19
20
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