Cost program protects profitability * Order intake on about the same level as last year.

Adjusted EBITA margin improved to 17.2 % supported by the cost reduction rogram. * Strong liquidity focus during the quarter increased cash flow from operating activities with SEK 2.2 billion. * A recommended public offer of SEK 18 billion concerning Neles was announced on July 13.

Summary

Second quarter

Order intake was unchanged at SEK 9,749 (10,025) million.

Net sales decreased by 6 percent to SEK 10,455 (11,339) million.

Adjusted EBITA: SEK 1,802 (1,870) million.

Adjusted EBITA margin: 17.2 (16.5) percent.

Result after financial items: SEK 1,720 (1,832) million.

Net income: SEK 1,296 (1,412) million.

Earnings per share: SEK 3.07 (3.36).

Cash flow from operating activities: SEK 2,844 (609) million.

Impact on adjusted EBITA of foreign exchange effects: SEK 60 (95) million.

Impact on result after financial items of comparison distortion items: SEK - (196) million.

First six months

Order intake decreased by 3 percent to SEK 21,626 (22,238) million.

Net sales decreased by 2 percent to SEK 21,045 (21,497) million.

Adjusted EBITA: SEK 3,552 (3,598) million.

Adjusted EBITA margin: 16.9 (16.7) percent.

Result after financial items: SEK 3,106 (3,454) million.

Net income: SEK 2,320 (2,637) million.

Earnings per share: SEK 5.50 (6.26).

Cash flow from operating activities: SEK 3,803 (1,584) million.

Impact on adjusted EBITA of foreign exchange effects: SEK 150 (190) million.

Impact on result after financial items of comparison distortion items: SEK - (196) million.

Return on capital employed (%) : 22.5 (22.2).

Net debt to EBITDA, times : 0.58 (1.30).

Excluding currency effects. Alternative performance measures.

Outlook for the third quarter

'We expect demand in the third quarter to be somewhat lower than in the second quarter.'

Earlier published outlook (April 23, 2020): 'We expect demand in the second quarter to be lower than in the first quarter.'

The Q2 2020 report has not been subject to review by the company's auditors.

This information is information that Alfa Laval AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at CET 7.30 on July 21, 2020.

Contact:

Tel: +46 46 36 72 31

Email: peter.torstensson@alfalaval.com

(C) 2020 Electronic News Publishing, source ENP Newswire