Alfa Laval presents first results from strategic review


Alfa Laval – a world leader in heat transfer, centrifugal separation and fluid
handling – today announces the first step of its new strategic direction to lift
organic growth. A new organization structure, with industry-oriented business
divisions, will be formed; the Marine division, the Food & Water division and
the Energy division. The new strategic direction is a long-term commitment which
will also include short-term initiatives addressing the need to adapt to
prevailing market conditions.
The strategic direction
Alfa Laval has enjoyed an overall strong development for a long period of time
thanks to solid market positions and a successful M&A program. During recent
years the organic growth has, however, been below expectations. The strategic
review focuses on getting the company back on a solid growth path and to manage
the short-term challenges caused by the weaknesses in the oil & gas and marine
sectors.

"The new strategic direction will put us in a better position to identify and
capture organic growth opportunities,” says Tom Erixon, President and CEO of the
Alfa Laval Group. “It will also increase competiveness and build the strength
necessary to succeed in a slow market”.

The new strategic direction rests on three pillars: customers, products and
services.

  · Improve customer interaction - the purchasing process must be as convenient
and responsive as possible for customers. To make this happen, a new
organization structure will be formed, with the main objective to create speed
in the customer interaction through clarity and accountability. Another
important element is being more selective in terms of market and application
presence. Alfa Laval’s resources can then be dedicated in a more efficient way –
targeting fewer areas with clear growth opportunities.

  · Build on our technological strengths – the three key technologies and core
products groups continue to be the backbone of Alfa Laval. The new strategy will
for instance put increased focus on supporting customers to achieve improved
energy efficiency and environmental performance. Another area involves further
exploring the opportunities associated with digitalization, in order to deliver
additional value to customers.
It also includes important measures to strengthen R&D, such as the decision to
invest in a new development laboratory for high-speed separators in Sweden.
Together with other measures, the development time for the next generation
separators will be significantly reduced and performance in the development
process will be improved.

  · Further grow the service offering – service is an integral part of Alfa
Laval’s offering and of high importance to most customers. The company will
continue to develop its service culture, offering, and presence. Examples of
recent decisions to expand the service capability include the opening of new
service centers in Iran, Angola and California, USA. They will all open during
2016.

An organization to support the strategic direction
In order to drive the development and deliver results a new organization will be
launched January 1, 2017. It will be based on three industry-oriented business
divisions; the Marine division, the Food & Water division and the Energy
division. The divisions will consist of product-based business units. Operations
will remain a common supply chain, but with closer ties to the business unit
structure. The three regional sales functions will be consolidated into one
Global Sales & Service organization.

“Forming the Marine division back in 2011 was a successful move. Now we follow
up with a Food & Water division and an Energy division”, says Tom Erixon.

The new structure will result in a smaller Group Management, going to 9 from 11
members. Three group management members retire; Ray Field - Asia, Göran
Mathiasson - Operations and Svante Karlsson - Process Technology. Mikael Tydén
will replace Göran Mathiasson as head of Operations. Several of the remaining
members of group management will get new roles. (The new group structure as well
as well as photos can be found at http://www.alfalaval.com/investors as related
material to the news release.)

The new strategic direction is a long-term commitment which will also include
short-term initiatives addressing the need to adapt to prevailing market
conditions. More detailed information about the different initiatives will be
released gradually. Complete information about the strategic review is expected
to have been given latest in conjunction with the Alfa Laval Capital Markets
Day, November 22, 2016.

“Alfa Laval has always supported its customers in a consistent way, delivering
solutions that make their operations more efficient and more sustainable,” says
Tom Erixon. “Going forward, the customers will find it even easier to do
business with us and our employees will recognize that Alfa Laval is an exciting
place to be.”

Alfa Laval will host a telephone conference on August 30 at 09:30 a.m CET
To join the telephone conference – hosted by Alfa Laval’s President and CEO Tom
Erixon, and Thomas Thuresson, CFO – sign up via the link below. Once registered,
you will receive a phone number, a participant pin and a conference pin. Please
dial in 10 minutes prior to the schedule start of the event. If you are having
difficulties registering, contact Intercall at +44 20 8288 5566.

https://eventreg2.conferencing.com/webportal3/reg.html?Acc=027199&Conf=222510

You can also follow the conference via a live webcast. A webcast link will be
available on www.alfalaval.com/investors.

If you want to listen to the replay, call +44 (0)20 7031 4064 or +46 (0)8 5052
0333, conference code 95 99 03. The recording will be available for 24 hours.
After that, you can go to www.alfalaval.com/investors and watch and listen to an
on-demand version of the webcast.

About Alfa Laval


Alfa Laval is a leading global provider of specialized products and engineering
solutions based on its key technologies of heat transfer, separation and fluid
handling.

The company’s equipment, systems and services are dedicated to assisting
customers in optimizing the performance of their processes. The solutions help
them to heat, cool, separate and transport products in industries that produce
food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar
and ethanol.

Alfa Laval’s products are also used in power plants, aboard ships, oil and gas
exploration, in the mechanical engineering industry, in the mining industry and
for wastewater treatment, as well as for comfort climate and refrigeration
applications.

Alfa Laval’s worldwide organization works closely with customers in nearly 100
countries to help them stay ahead in the global arena. Alfa Laval is listed on
Nasdaq OMX, and, in 2015, posted annual sales of about SEK 39.7 billion (approx.
4.25 billion Euros). The company has about 17 500 employees.

www.alfalaval.com

For more information, please contact:
Peter Torstensson
Senior Vice President, Communications
Alfa Laval
Tel: + 46 46 36 72 31
Thomas Thuresson
CFO
Alfa Laval
Tel: +46 46 36 72 40

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 08:30 on August 30, 2016.

Attachments

08308617.pdf