Alfa Laval AB (publ) Interim report April 1 - June 30, 2016

“Order intake was marginally better than in the first quarter and in line with
our expectations. The large projects in the market were still very few at the
same time as demand was slow within the oil & gas and marine sectors. During the
quarter external  prognoses for the 2016 ship contracting were reduced to the
range 650-850 from about 900. This is a low figure and in line with how we
perceive the market.

The order intake in the quarter was supported by a number of sectors, such as
food. Geograph­ically, the growth continued in Eastern Europe, including Russia.
Excluding the Marine business, Asia also continued to grow with China as the
main engine. Sequentially, the U.S. showed good growth, but compared to the same
quarter last year the order intake is negatively impacted by the downturn within
the oil & gas sector.

The outcome per division was mixed. The operating margin in Process Technology
continued to be burdened by a negative mix, which is expected to remain during
the rest of the year. The Marine & Diesel division showed a flat order intake in
the quarter, with a downturn in two segments at the same time as the demand
within Pumping Systems grew. The profitability contin­ued to be good. The
Equipment division had a good quarter with good growth, especially in the food
sector and in addition a stable operating margin.

The strategic review that was announced in the previous quarter is continuing
according to plan. The result of this review will be presented before the end of
the year.”

Tom Erixon, President and CEO
Summary: second quarter

Order intake decreased by 9 percent* to SEK 8,101 (9,146) million.
Net sales decreased by 9 percent* to SEK 8,950 (10,177) million.
Adjusted EBITA**: SEK 1,393 (1,816) million.
Adjusted EBITA margin**: 15.6 (17.8) percent.
Result after financial items: SEK 1,265 (1,455) million.
Net income: SEK 931 (1,075) million.
Earnings per share: SEK 2.21 (2.54).
Cash flow from operating activities: SEK 1,233 (1,505) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 137 (182) million.

Summary: first six months

Order intake decreased by 14 percent* to SEK 15,811 (18,990) million.
Net sales decreased by 8 percent* to SEK 17,149 (19,248) million.
Adjusted EBITA**: SEK 2,726 (3,385) million.
Adjusted EBITA margin**: 15.9 (17.6) percent.
Result after financial items: SEK 2,355 (2,718) million.
Net income: SEK 1,802 (1,938) million.
Earnings per share: SEK 4.27 (4.59).
Cash flow from operating activities: SEK 2,143 (2,606) million.
Impact on adjusted EBITA of foreign exchange effects: SEK 230 (330) million.

* Excluding currency effects. ** Alternative performance measures, defined on
page 22.

Outlook for the third quarter:

“We expect that demand during the third quarter 2016 will be in line with or
somewhat lower than in the second quarter.”
Earlier published outlook (April 25, 2016): “We expect that demand during the
second quarter 2016 will be on about the same level as in the first quarter.”

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

For more information, please contact:
Peter Torstensson, Senior Vice President, Communications
Phone: +46 46 36 72 31
Mobile: +46 709 33 72 31
peter.torstensson@alfalaval.com
Gabriella Grotte, Investor Relations Manager
Phone: +46 46 36 74 82
Mobile: +46 709 78 74 82
gabriella.grotte@alfalaval.com
Alfa Laval AB (publ)
PO Box 73
SE-221 00 Lund
Sweden
Corporate registration number: 556587-8054

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 11.45 on July 18, 2016.