Preserving solar energy  
to brighten gloomy days
Annual Report 2020

ABOUT ALFA LAVAL
Alfa Laval in brief 
3
President’s comments 
6
2020 in brief 
8
Purpose, business concept and goals 
10
Strategic priorities 
12
 
Customers 
14
 
Products 
16
 
Service 
18
Key technologies 
20
 
Heat transfer 
21
 
Separation 
22
 
Fluid handling 
23
Division overview 
24
 
Food & Water 
26 
 
Energy 
32
 
Marine 
38
 
Operations 
44
Employees 
46  
Sustainability and reporting 
48
 UN Sustainable Development Goals  
and Alfa Laval 
51
The share 
52
CORPORATE GOVERNANCE 
Introduction by the Chairman of the Board 
56
Corporate Governance Report 2020 
57
Board of Directors and auditors 
64
President and Group management 
66
Board of Directors’ report on internal control 
68
Auditor’s statement on the  
Corporate Governance Report 
70
FINANCIAL STATEMENTS
Board of Directors’ Report 
72
Consolidated cash ﬂows 
86
 
Comments to the consolidated cash ﬂows 
87
Consolidated comprehensive income 
88
 
 Comments to the consolidated  
comprehensive income 
89
Consolidated ﬁnancial position 
92
 
 Comments on the consolidated  
ﬁnancial position 
94
Changes in consolidated equity 
94
 
 Comments on changes  
in consolidated equity 
95
Parent company cash ﬂows 
96
Parent company income 
96
Parent company ﬁnancial position 
97
Changes in parent company equity 
98
Notes to the ﬁnancial statements 
99
 
Accounting principles 
99
 
 Objectives, policies and processes  
for managing capital 
107
 
Financial risks 
108
 
Operational risks 
112
 
Notes 
118
Auditor’s report 
152
Ten-year overview 
156
Deﬁnitions 
158
Financial information 
159
Annual General Meeting 
159
Contents

Alfa Laval is a world-leading, global provider of ﬁrst-rate 
products in the areas of heat transfer, separation and ﬂuid 
handling. With these as its base, Alfa Laval aims to help 
enhance the productivity and competitiveness of its 
customers in various industries throughout the world. 
We deﬁne their challenges and deliver sustainable products 
and solutions that meet their requirements – mainly in 
energy, the environment, food and the marine industry.
Alfa Laval

Alfa Laval is helping to achieve 15 of the UN’s Sustainable Development 
Goals through products and solutions that improve energy efficiency, 
reduce emissions, purify water, minimize waste and lead to the efficient 
use of raw materials.
Operations handles production-related procurement, distribution and logistics on 
a global basis and ensures that anything sold by the three divisions is produced 
and delivered in line with the promise made to the customer.
The need to heat, cool, transport and separate arises in many industries: 
food, energy, pharmaceuticals, refineries or petrochemicals – Alfa Laval can 
help in the majority of them. End customers are reached through the Energy, 
Food & Water and Marine divisions.
For whom?
Where?
Sustainability?
How?
Alfa Laval’s products, systems and services are sold in more than 100 countries. 
More than 110 service centers deliver services in over 160 countries This means 
that Alfa Laval is close to its customers, ready to help at a moment’s notice
when the need arises.
Heat transfer
Compact heat exchangers that recycle heat, optimize customers’ energy 
consumption, cut costs and reduce negative environmental impact.
Separation
Separators, decanter centrifuges, filters, strainers and membranes that separate 
liquids from other liquids and solid particles from liquids or gases.
Fluid handling
Pumps, valves, tank cleaning equipment and installation material for industries 
with stringent hygiene requirements as well as pumping systems specifically 
for the marine industry and the offshore market.
What?

5
Two renewable sources of energy that bring hope of a brighter future. They reduce the carbon 
footprint dramatically and are expected to account for half the world’s electricity generation in 
ten years’ time. There is only one big problem: when the sun is not shining and the wind does 
not blow, no power is generated. Unless the energy can be stored effectively on a large scale. 
As part-owner of a new company, Alfa Laval’s knowledge and expertise is playing an important
role in turning this challenge into reality.
Our unique and specially designed heat exchangers convert electrical energy from solar and wind 
plants into thermal energy. The heat is then stored and preserved in gigantic bays of molten salt 
– like a natural battery – waiting to be awakened and transformed back into electricity when 
needed in the grid. So, even on grey days, the forecast looks bright.
Solar and wind

6
Alfa Laval performed well in 2020 and we remain fully committed 
to our long-term strategy while leveraging the changing market 
conditions. Increased investments in our technology leadership, 
a stronger focus on expanding the service offering, and the 
development of a more customer-oriented culture with faster 
decision making continue to be our key strategic ambitions. 
Strong global trends driving demand
Sustainability
We all need to gradually change our way of life for the sake of 
our planet and future generations. To Alfa Laval, sustainability 
is both a necessity and a business opportunity and our tech-
nologies promote a more responsible use of natural resources. 
The most tangible change related to the environmental trends 
was seen in the Energy division. The division´s heat transfer 
technology is critical in driving energy efﬁciency in a wide range 
of applications. Energy-efﬁcient solutions for heat pumps and 
reducing the energy consumption in energy intensive data centers 
are just two applications that are growing in importance. The 
increased need for renewable energy sources drives a long-
term demand for radically improved energy storage solutions. 
Alfa Laval has continued to invest heavily in a new technology 
for thermal energy storage and the market for larger scale 
thermal energy storage is expected to gain momentum over 
the next three years. Finally, the importance of hydrogen as a 
fuel became evident in 2020 and is an important component 
in reaching the Paris agreement. Investments into the global 
infrastructure for hydrogen are expected to greatly increase over 
the next ten years and Alfa Laval intends to play an important 
role in this transition. During 2020, we increased our invest-
ments into fuel cells to take an early position in this market.
After many years of investments in new product platforms and 
a more focused sales organisation, the results were evident in 
the Food & Water division. While most of the traditional appli-
cations for the division are growing in line with the growth of 
the global middle class, the division is also adjusting to signiﬁ-
cant changes in consumer behaviour. Investments into plant-
based proteins as well as insect-based proteins are increasing. 
Alfa Laval´s extraction technologies, as well as other process 
equipment, are needed for cost and energy efﬁcient production 
of these proteins and have continued to see good momentum 
during 2020.
Sustainability is a key focus also in the Marine division. From a 
volume perspective, the applications for cleaning ballast water 
and exhaust gases, PureBallast and PureSOX, dominated the 
portfolio. New marine fuels to reduce the C02 impact of world 
trade will continue to drive technology and new product offer-
ings for many years to come. LNG as a fuel was one of the fuel 
initiatives with most traction in 2020. An important step in 
making LNG a climate positive fuel in the marine industry was the 
launch of PureCool a new technology to reduce the problem 
of methane-slip in LNG applications. 
President’s  
comments
2020 was a remarkable year in many ways. We navigated our company in 
unprecedented circumstances while seeing many global transformational trends 
accelerating, with the sustainability agenda continuing to gain momentum 
and high pace in the digital transformation.

7
President’s comments
Digitalization
During the ﬁrst quarter in 2020 Alfa Laval had to adjust the global 
workforce to start working remotely. More than 50 percent of 
the white-collar employees have worked from home since then. 
Although the changes posed challenges to the organisation, 
the people, technology and infrastructure was already in 
place to manage the situation and secure business continuity. 
Our customers also adjusted quickly to digital interaction. 
The most important area of development was in service, which 
historically has required physical interaction with the customers 
and the equipment. Our service organisation had already de-
veloped the required tools for connected equipment and remote 
diagnostics. The number of remote diagnostics and service 
hours grew from essentially zero in 2019, to more than 10,000 
service hours in 2020. The change to digital service is here to stay 
and will continue to grow in years to come, and Alfa Laval is 
committing to developing and growing in this area going forward. 
Business performance
In a year of volatility caused by the COVID-19 pandemic, Alfa 
Laval proved resilient and showed a good ability to act fast. In 
all, order intake declined by 10 percent compared to 2019 
and amounted to 41 BSEK and total invoicing was 42 BSEK, 
a decline of 11 percent compared to previous year. 
Despite lower volumes, proﬁtability remained on a high level at 
17.4 percent, essentially unchanged compared to 2019. The 
strong operating margin was supported by our well diversiﬁed 
portfolio and aftersales exposure, but also a result of the cost 
savings program launched in February focusing on short-term 
savings with maximum ﬂexibility. In total, the program reduced 
ﬁxed costs with 700 MSEK compared to 2019. At the end of 
2020, a restructuring program was announced with the objective 
to adjust certain businesses in the Marine and Oil & Gas sectors 
to more structural changes in demand. The program is estimated 
to generate annual savings of approximately 300 MSEK with full 
effect from 2022.
Finally, it has been a challenging year from an operational per-
spective. I would like to express my gratitude to both our suppliers 
and our customers for being able to quickly adapt to difﬁcult 
circumstances. Despite all the challenges the industrial supply 
chains remained intact during 2020. May I also express my 
sincere gratitude to all our committed employees for a job 
well done in a challenging 2020.
Lund in February 2021
Tom Erixon
President & CEO
“ Alfa Laval performed well in 
2020 and we remain fully 
committed to our long-term 
strategy while leveraging the 
changing market conditions. ”

8
0
10,000
20,000
30,000
40,000
50,000
20
19
18
17
16
SEK MILLION
32,060
36,628
45,005
44,119
39,833
1)  Adjusted EBITDA – Operating income before depreciation and amortization of step-
up values, adjusted for items affecting comparability.
2)  Adjusted EBITA – Operating income before amortization of step-up values, adjusted 
for items affecting comparability.
3) Board proposal to the Annual General Meeting.
4) Free cash flow is the sum of cash flow from operating and investing activities.
5) Number of employees at year-end.
6) Percentage change between 2019 and 2020.
2020 in brief
Net sales, SEK million
Order intake, SEK million
Return on  
capital employed
Net debt to  
EBITDA, times
Number  
of employees
Investments in R&D
Adjusted EBITA
2.5%
Operating margin  
(adjusted EBITA)
Amounts in SEK million unless otherwise stated
+/- %6)
2020
2019
2018
2017
2016
Order intake 
-10
39,833
44,119
45,005
36,628
32,060
Net sales   
-11
41,468
46,517
40,666
35,314
35,634
Adjusted EBITDA 1)
-8
8,365
9,062
7,344
6,239
6,196
Adjusted EBITA 2)
-9
7,231
7,989
6,718
5,610
5,553
Operating margin (adjusted EBITA 2)), % 
17.4
17.2
16.5
15.9
15.6
Proﬁt after ﬁnancial items
-31
4,977
7,221
5,896
4,371
3,325
Return on capital employed, %
19.1
23.0
22.4
17.7
15.3
Return on shareholders’ equity, % 
12.7
21.3
20.3
13.9
11.8
Earnings per share, SEK
-35
8.47
13.08
10.77
7.09
5.46
Dividend per share, SEK 
5.50 3)
0
5.00 
4.25
4.25  
Equity per share, SEK
5
69.31
66.15
56.26
48.87
48.34
Free cash ﬂow per share, SEK 4)
59
15.89
10.00
8.56
8.92
9.97
Equity ratio, % 
59
47.8
43.1
40.6
39.0
38.0
Net debt to EBITDA, times
0.48
0.88
0.93
1.31
1.81
Number of employees 5)
-4
16,882
17,497
17,228
16,367
16,941
Order intake
Order intake amounted to SEK 39,833 million in 2020, 
down 10 percent compared to 2019. Excluding ex-
change rate variations, order intake declined 6 percent.
SEK MILLION
0
2,000
4,000
6,000
8,000
20
19
18
17
16
4,184
3,742
3,590
4,196
6,665
Free cash ﬂow
Alfa Laval generated a free cash ﬂow of SEK 6,665 
million (4,196) in 2020. 
0
2,000
4,000
6,000
8,000
20
19
18
17
16
0
10
20
30
40
SEK MILLION
5,553
5,610
6,718
7,989
7,231
%
Adjusted EBITA
Adjusted EBITA amounted to SEK 7,231 million.  
The adjusted EBITA margin was 17.4 percent.
41,468
39,833
19.1%
0.48
16,882
7,231
17.4%

2020 in brief
– Launch of global restructuring program
– Stable demand and improved proﬁtability
–  The board proposes a dividend of SEK 5.50 for 
2020 and a three-year share buy-back program of 
up to 5 percent of the issued shares per year
Q1
Q3
Q2
Q4
Order intake,  
SEK million
Order intake,  
SEK million
Order intake,  
SEK million
Order intake,  
SEK million
Adjusted EBITA,  
SEK million
Adjusted EBITA,  
SEK million
Adjusted EBITA,  
SEK million
Adjusted EBITA,  
SEK million
Operating margin, %
Operating margin, %
Operating margin, %
Operating margin, %
11,877
8,935
9,749
9,272
1,750
1,710
1,802
1,969
16.5
17.6
17.2
18.4
Net sales,  
SEK million
Net sales,  
SEK million
Net sales,  
SEK million
Net sales,  
SEK million
10,590
9,728
10,455
10,695
–  Strong growth in new energy-efﬁcient solutions
–  Launch of short-term cost-reduction program to 
address the negative effects of COVID-19
–  Operational adaptations in production and the 
supply chain
–  Alfa Laval presented a public tender offer of EUR 
11.50 per share for all of the shares in Neles
– Strong growth in Food & Water
–  Positive effects from short-term cost-reduction 
program
–  Order intake in line with last year despite a 
challenging quarter due to COVID-19
– Strong cash ﬂow from operating activities
–  Launch of Alfa Laval CultureOne™, a unique 
separation system for single-use biopharma-
ceutical processing
9

10
* Excluding exchange rate variations
Financial goals
Alfa Laval is governed with the aim of realizing its business concept, while at the same time meeting the ﬁnancial goals established with 
regard to growth, proﬁtability and capital utilization. By achieving or exceeding these goals, Alfa Laval creates the necessary scope for 
its continued favorable development as well as generating increased value for its shareholders in the form of an annual dividend and 
by boosting the value of the company.
Growth
Alfa Laval’s goal is to achieve average 
annual sales growth of at least 5 percent 
measured over a business cycle. This 
target is regarded as realistic, viewed in 
light of the prevailing business scenario 
and against the backdrop of Alfa Laval’s 
achievements in recent years.
Outcome 2020
Outcome 2020
Outcome 2020
Proﬁtability
Alfa Laval is to achieve an operating 
margin – adjusted EBITA – of 15 percent 
measured over a business cycle. This 
goal was established based on historical 
margins, while also taking the company’s 
growth ambitions into consideration.
Capital utilization
The goal is to have a return on capital 
employed of at least 20 percent, a realistic 
ambition based on a combination of organic 
and acquired growth.
Our purpose provides the motivational force in our daily activities. Dedicated 
to outstanding customer service, an inspiring and embracing workplace, 
and with sustainability in our genetic code, we deﬁne our purpose as 
accelerating success for our customers, people and planet. 
Based on its three key technologies – heat transfer, separation and ﬂuid 
handling – Alfa Laval offers products and solutions that are in line with its 
business concept: “To optimize the performance of our customers’  
processes, time and time again.” In other words, Alfa Laval aims to help 
its customers become more productive, energy-efﬁcient and competitive.
20%
15%
5%
Our Purpose
Business concept
-15
-10
-5
0
5
10
15
20
20
19
18
17
16
0
5
10
15
20
20
19
18
17
16
0
5
10
15
20
25
20
19
18
17
16
-7.5%*
17.4%
19.1%

11
* As a percentage of sales
* As a percentage of sales
** Including investments in fixed assets
Financial benchmark values
In addition to the Group’s ﬁnancial goals, the Board has established benchmark values for three key ﬁnancial ratios, which further 
specify the framework and goals for the operation of the company.
Outcome 2020
Outcome 2020
Outcome 2020
Net debt in relation to EBITDA
In the long term, net debt in relation to 
EBITDA, meaning operating proﬁt before 
depreciation and amortization of step-up 
values, is not to be more than 2. Although 
the ratio may exceed the goal in connection 
with major acquisitions, this should be 
viewed as a temporary situation, since 
the company’s cash ﬂow is expected to 
offset this effect.
Investments
The long-term benchmark value has been, 
and will continue to be, for 2 percent of 
sales to go to investments. This level 
creates the necessary scope for replace-
ment investments as well as certain capacity 
expansions in order to match the organic 
growth of the Group’s key products. 
Cash ﬂow from operating activities
Cash ﬂow from operating activities is to 
amount to 10 percent of sales, including 
investments in ﬁxed assets. This value is 
lower than the goal for the operating 
margin, since organic growth normally 
requires an increase in working capital. 
In addition, taxes are paid in an amount 
corresponding to approximately 26 per-
cent of earnings before tax.
Purpose, business concept and goals
<2.0
2%
10%
Sustainability goals
In addition to its ﬁnancial goals, Alfa Laval also has a number of sustainability goals. These reﬂect the company’s ambitions with respect 
to the environment, health and safety. Among other areas, these targets encompass: a reduction in the number of workplace accidents, 
increased energy efﬁciency, a reduction in water consumption and a reduction in greenhouse gas emissions. 
49
Read more about Alfa Laval’s sustainability goals on page 49. For more information about Alfa Laval’s 
sustainability work, refer to the Sustainability Report available at: www.alfalaval.com
0
1
2
3
20
19
18
17
16
0
1
2
3
4
20
19
18
17
16
0
5
10
15
20
20
19
18
17
16
0.48
3.0%
15.7%**

12
Strategic  
priorities
To achieve its vision, implement its business concept and 
attain its growth, proﬁtability and capital utilization goals, 
Alfa Laval has established various strategic priorities that 
encompass customer collaboration, a focus on products 
and working to further strengthen the aftermarket offering.

Strategic priorities
13
Alfa Laval is, and has always been, a product-driven 
company. A strong focus on research and develop-
ment (R&D) will remain the single most important 
factor for market leadership and organic growth. 
At Alfa Laval, we strive to always meet our customers’ 
high expectations when it comes to quality, service, 
interaction and sustainability.
Customers
Service
Products
16
18
14
Alfa Laval will need to continuously develop its service 
business in order to fully leverage its large installed base, 
fuel growth and improve the customer experience.

Hours, remote service.
+10,000
Customers
Alfa Laval strives to offer customers the best overall experience, from initial contact to 
service. Products and total solutions are developed based on the customer’s needs, 
which creates added value as well as favorable conditions for long-term relationships 
and new business opportunities.  
Alfa Laval endeavors to optimize its customers’ processes. 
Naturally, the company’s products are central in this. But 
customers tend to weigh other criteria as well when they 
evaluate their overall experience with a supplier. They look 
at the product’s quality and efﬁciency, of course, but also 
at the seller’s service and knowledge, how easy they are 
to reach and how quickly they respond with answers to 
any questions. They evaluate how helpful the supplier can 
be if something happens and they need to order spare 
parts and service. They also look at how punctual the 
supplier’s deliveries are and, in many cases, even at the 
supplier’s sustainability work, to name a few examples. 
Alfa Laval endeavors to be a company that is easy to do 
business with. By meeting the customer’s expectations 
and needs, from the initial contact through the sales pro-
cess to delivery and even in the aftermarket, the condi-
tions are created for a positive customer experience. 
This makes it more likely that Alfa Laval will become their 
ﬁrst choice for their next procurement. 
Alfa Laval works on a broad scale to simplify customer 
collaboration. One aspect of this involves an organiza-
tional structure created to ensure short decision-making 
paths and thus faster customer contacts. Another involves 
the establishment of three standardized business models 
to address customers’ differing needs, challenges and 
purchasing processes. 
1.  Standard – sale of standardized components 
through channels and online, with a focus on easy 
accessibility and lead times. 
2.  Conﬁgured – standardized components with standard 
conﬁguration formats for adaptation to speciﬁc appli-
cations, capacities, etc. 
3.  Project – customized systems and solutions for cus-
tomers with speciﬁc requirements.  
Artificial Intelligence (AI) troubleshooting.
Connected assets.
+450%
+300%
14

Customers
There are also other ways to make things easier for cus-
tomers. Alfa Laval therefore works actively to improve 
and develop its digital platforms, everything from the 
company’s website and e-commerce platform to mar-
keting initiatives and social media. The goal is to reach 
the customer early in the decision-making process, help 
them ﬁnd Alfa Laval’s website, make it easier for them 
to ﬁnd what they need there and even offer them a way 
of conﬁguring as well as ordering products online. Pur-
chasing patterns change and it is essential to keep up.
Existing plans to introduce digitized processes were 
expedited to counteract the effects of shutdowns and 
physical distancing measures related to COVID-19. 
During the ﬁrst half of the year, Alfa Laval accelerated the 
introduction of a digital platform to support customers with 
remote services. The platform enables service technicians 
at the customer’s facility to create a video link to use 
“merged reality” to facilitate efﬁcient remote control. 
Thanks to the digital platform and a new work method, 
Alfa Laval improved access to its product and application 
experts and reduced wait times for service technicians 
when it comes to addressing customers’ issues. The 
platform also helps Alfa Laval meet its goal of offering 
customer-oriented solutions, even when travel restrictions 
make it difﬁcult, or even impossible, to deploy service 
technicians to customers’ facilities. At year-end, product 
and application experts had logged over 10,000 hours 
of remote service to maintain customer processes.
15

16
The company’s growth rate and the tempo of its product launches 
are constantly accelerating, and major initiatives have been under-
taken in the last few years. The most important of these were the 
launch of two new platforms for separators and heat exchangers 
and the development and implementation of several digital solutions. 
These changes were made possible in large part due to a compre-
hensive analysis of the entire Group in 2016. Everything from the 
company’s R&D processes to the product range and marketing 
were put under the microscope and reviewed. The company’s 
services offering and, not least, the rate and scope of digitization 
were also enhanced. Challenging and further developing the offering 
is an ongoing process, which will continue throughout all areas to 
ensure the company’s competitiveness.
Life cycle analyses can help the company deﬁne and implement 
methods that also take environmental aspects into consideration 
during the development and design of key technologies. The am-
bition is that every new product, in addition to being more efﬁcient, 
should have a smaller impact on the environment than the product 
it replaces. It is not only about the product’s own life cycle, how-
ever – it is also about developing a product or solution that can 
help make the customer’s processes more resource efﬁcient.
The rate of product launches has increased over the past few 
years. Between product improvements, upgrades and entirely 
new products, Alfa Laval launches approximately 100 products 
annually, which is the equivalent of around two products per week. 
The focus is on delivering products and services that can provide 
improvements for the customer, whether in terms of energy efﬁ-
ciency or the ability to digitally monitor product performance.
A competence center for tomorrow’s solutions
During the last few years, Alfa Laval has established international 
competence and test centers in different key areas. There is a 
center for high-speed separators in Tumba, Sweden as well as 
several facilities in Denmark: a center for the next generation of 
decanters and digital solutions in Søborg, a center for the devel-
opment of marine solutions in Aalborg and a center for membrane 
ﬁltration in Nakskov. In 2020, the Hygienic Fluid Handling Busi-
ness Unit opened a major technology-speciﬁc application and test 
center in Kolding, Denmark. 
In addition to competence centers, Alfa Laval has different product- 
based business centers. Each center focuses on a speciﬁc product 
portfolio, such as compact heat exchangers, ﬂuid handling products 
or boilers. These centers are responsible for R&D as well as further 
developing existing product platforms. They are also responsible 
for product strategies, pricing, sales tools and training as well as 
follow-up and evaluation of product launches. Product and business 
development takes place every day of the year at Alfa Laval.
Driven by development
A constant focus on R&D is and always has been essential for Alfa Laval. This is, without a 
doubt, the most important condition for the company to be able to deliver products and 
solutions of the highest quality to industries around the world. The goal is clear: remain a 
market leader in heat transfer, separation and ﬂuid handling.

17
Investments in R&D are to correspond to 2.5 
percent of sales per year.
Every year, the patent department handles 
a large number of internal reports on new 
inventions, of which approximately 35–70 
lead to new patent applications.
Approximately 100 new products are 
launched every year.
Products
2.5%
35–70
100
Approximately 2.5 percent of Alfa Laval’s annual sales are invested 
in R&D. It is therefore of the utmost importance that we protect 
the products that are the ﬁnal result of these development efforts 
and investments. When a new product, design or function is ready, 
Alfa Laval’s patent department steps in. Every year, the patent 
department handles a large number of internal reports on new in-
ventions, of which approximately 35–70 lead to new patent appli-
cations. The patent department also deals with trademark registra-
tions and investigations as well as monitoring and handling patent 
infringements. 
Continuously developing the operations
For Alfa Laval, working with development is about much more than 
the concept of “R&D”. Development is continuous and permeates 
all areas of the operations, allowing the company to lead the way 
in a changing world. Work related to the supply chain is handled 
by Operations Development. This organization makes sustainable 
improvements across the entire chain, from procurement and pro-
duction to distribution and logistics, which encompasses further 
developing the procurement process and investigating, developing 
and evaluating new production technology within the framework 
of Industry 4.0. During the year, a pilot project was established for 
additive manufacturing: 3D printing of product components. 
Operations Development has employees at major production facilities 
spread around the globe. Everything they do is about change, big 
and small. The goal of their work is to ﬁnd solutions that strengthen 
the company’s competitiveness. The unit manages hundreds of 
projects every year.
Another unit that also works with development is Corporate Devel-
opment. They work according to a strategic, long-term view of 
technical development in possible future growth areas and new 
market concepts. They also support long-term activities carried out 
in the company’s various functions, and investigate and analyze 
different possibilities when it comes to new technologies or areas 
that could present future challenges or opportunities.
Alfa Laval has long supplied large heat recovery 
systems to the marine industry. The newly  
developed unit – Alfa Laval Micro – is smaller in 
size and specifically developed for land-based 
applications, and can increase the electricity 
production of a power plant by 6–8 percent.

18
The transformation of Alfa Laval Service got off to a good start in 
2020. A combination of more digitized services and the ongoing 
restructuring of in-person service points closer to the installed 
base continued throughout the year in an effort to increase the 
company’s physical and digital proximity to customers. 
As a part of the restructuring of the company’s global organization, 
Alfa Laval continued to invest time and money in improving its 
proximity to its installed base. Several projects were started in the 
effort to achieve the right balance between, on the one hand, 
small local service centers for standard services and, on the other, 
advanced service centers with leading technology to facilitate all 
kinds of services, repairs and complete renovations. 
During the year, Alfa Laval launched a Group-wide transition of its 
service technician team to continuously improve accessibility and 
skills and to reduce wait times for addressing customers’ issues 
and service needs. By providing service technicians with access to 
new digital processes and recruiting additional service technicians 
during 2020, Alfa Laval was able to further improve its proximity 
to customers as well as the customer experience. A process was 
also initiated for competence development plans to increase the 
service technicians’ digital and electronics expertise in order to 
handle new demands from customers in pace with Alfa Laval’s 
increasingly digitized product portfolio and an overall increased 
use of the Internet of Things (IoT). 
At the same time, sales forces across all of Alfa Laval have imple-
mented a clearer strategic and data-based focus on retaining and 
developing the existing and future customer base. At the end of 
the ﬁrst quarter, locally adapted strategies to capitalize on the 
data in Asia started to yield results, while the sales forces in other 
regions adopted similar customized strategies during the rest of 
the year. The introduction of a global dashboard for the installed 
base led to new insights into customers’ service needs, which en-
able the service sales force to proactively contact customers with 
offers of preventive services before the customers realize they 
need them. 
To further support the service business, Alfa Laval is continuously 
expanding the number of service agreements with customers at 
each new sale. The primary goal is to leverage the full value of each 
new equipment sale and demonstrate the cost beneﬁts of owning 
Alfa Laval’s equipment. The secondary goal is to offer customers 
the advantages of preventive maintenance and connected service 
solutions, and the effect they have when it comes to continuously 
improving processes and minimizing unplanned stoppages. A cam-
paign across the entire organization to sell more service agreements 
led to a 25 percent increase compared to 2019. 
When it comes to selling spare parts, offering times, the availability 
of spare parts and accurate estimates of delivery times remain 
important factors, since these have a direct impact on the cus-
tomer’s ability to maintain processes without stoppages involving 
Alfa Laval’s equipment. Despite shutdowns in several countries, 
Alfa Laval’s distribution center was able to maintain operations 
and delivered to customers with only limited disruptions. 
Intensiﬁed efforts and strategic initiatives to transform Alfa Laval’s 
services businesses, combined with the dedication of the com-
pany’s employees, successfully mitigated the effects of an overall 
uncertain 2020.
Digitized and data-based service 
improves the customer experience
During 2020, Alfa Laval continued to transform its sales of service and spare parts as well as 
its customer service in line with its strategy to make them more digitized and data-based. The 
ultimate goal of transforming the service business is for Alfa Laval to be able to fully leverage 
its installed base, improve and expand the customer base and simultaneously improve the 
customer experience, thereby supporting Alfa Laval’s brand.

19
Service
SEK MILLION
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
20
19
18
17
16
10,573
10,923
11,568
12,824
11,773
Service Order intake, SEK million
Large and mature installed base that 
needs to be maintained and renewed.
A combination of fast-growing markets and 
established niche applications.
Installed base that is growing rapidly.
Service centers.
Long-term potential – Value of the aftermarket relative to new sales
Decanters x 1.5
Pumps and  
valves x 1–2.5
Separators x 4
Plate heat  
exchangers x 1–7
1
1
1
1
2
2
2
3
3
4
4
5
6
7
More than 100 service centers with 
the capacity to deliver services in 
over 160 countries.
Service centers
>100
service technicians in total.
more service agreements.
Data driven sales – Users.
Data driven sales – Sessions.
700
25%
+84%
+125%

20
World-leading in three 
key technologies
Alfa Laval’s operations are based on three key technologies – heat transfer, 
separation and ﬂuid handling. These technologies play a key role in a 
number of industrial processes and Alfa Laval commands a world-leading 
position in all three areas.

The key word is efﬁciency
Heat exchangers transfer heat or cooling, often from one liquid to another. 
The main product in Alfa Laval’s offering – the compact plate heat exchanger – 
is more efﬁcient than alternative technologies, allowing it to play a crucial role in 
boosting the overall efﬁciency of the customer’s manufacturing process. Energy 
efﬁciency reduces not only costs but also the impact on the environment. Plate 
heat exchangers are made up of a series of plates assembled closely to each other. 
Between these plates run two channels containing media at different temperatures 
– often liquids. These ﬂow on either side of the thin plates and in opposite directions 
to each other, resulting in a transfer of heating or cooling.
A complete offering
There are different types of plate heat exchangers – gasketed, brazed and welded 
– each designed to withstand different pressure and temperature levels. With the 
industry’s broadest product portfolio, Alfa Laval offers efﬁcient, compact products 
– that are easy to service and maintain – for nearly all industries worldwide.
Business units with heat transfer products 
in their range
ENERGY DIVISION
•  Brazed & Fusion Bonded Heat Exchangers 
•  Gasketed Plate Heat Exchangers
•  Welded Heat Exchangers
FOOD & WATER DIVISION
•  Food Heat Transfer
•  Food Systems
MARINE DIVISION
•  Marine Separation & Heat Transfer Equipment
•  Boiler Systems
•  Gas Systems
Heat transfer
Key technologies
Heating and cooling are basic needs for both the individual and most industrial processes. There 
is a large number of industries today in which heat transfer solutions are required for heating, 
cooling, ventilation, evaporation and/or condensation. All of this can be achieved efﬁciently using 
a heat exchanger. Therefore, heat transfer products from Alfa Laval are now found in numerous 
areas – within everything from food production and petrochemicals to the creation of a pleasant 
indoor climate or hot tap water in private households, to name only a few examples.
Competitors
Market position
Sales
 Danfoss A/S (Denmark) 
 HEATMASTER (Netherlands)
 HISAKA (Japan)
 Kelvion (Germany)
 KANGRIM (Korea)
 MIURA (Japan)
 OSAKA (Japan)
 SAACKE (Germany)
 SPX FLOW/APV (US)
 SWEP (US)
1
40%
30–35 percent of the world market.
Share of Group sales.
21

Separation is the technology that represents the origin of the Alfa Laval we see today. The 
business began in 1883, based solely on separation, and this technology remains a core fea-
ture to this day. With precision and a high degree of reliability, liquids, solid particles and gases 
are separated from one another, which is a requirement in a large number of industries.
Business units with separation products in 
their range
ENERGY DIVISION
•  Energy Separation
FOOD & WATER DIVISION
•  High Speed Separators
•  Decanters
•  Food Systems
MARINE DIVISION
•  Marine Separation & Heat Transfer Equipment
High-speed separators and decanter centrifuges
Alfa Laval’s separation products are dominated by high-speed separators and 
decanter centrifuges. Separators have high rotation speeds, are generally mounted 
vertically and can separate small particles from liquids and gases. Decanter cen-
trifuges are normally mounted horizontally, operate at lower speeds and are used 
to separate larger particles from liquids. They are used, for example, in the de-
watering of sludge in wastewater treatment plants. Other separation products 
include membrane ﬁlters, which are the established solution for separating very 
small particles, and belt ﬁlter presses, which are used for mechanical dewatering, 
mainly of municipal wastewater. 
Key role in a number of processes
Separators and decanter centrifuges play a crucial role in numerous industrial 
processes, such as:
• food, pharmaceutical, bioengineering, chemical and petrochemical processes.
•  extraction and production of crude oil, and treatment and recovery of drilling mud.
•  handling and treatment of fuel and lubricants aboard vessels and at diesel/gas 
power plants.
•  dewatering of sludge and treatment of process water in private and municipal 
facilities.
Separation
Separators
 GEA (Germany)
 MITSUBISHI KAKOKI KAISHA (Japan)
 PIERALISI (Italy)
 SPX FLOW/Seital (US)
Decanters
 Flottweg (Germany)
 GEA (Germany)
  
 GUINARD/ANDRITZ (France, Austria)
 PIERALISI (Italy)
Competitors
Market position
Sales
1
17%
25–30 percent of the world market.
Share of Group sales.
22

Key technologies
The transportation and regulation of ﬂuids in an efﬁcient and safe manner is crucial to many in-
dustries. Alfa Laval focuses on ﬂuid handling products, such as pumps and valves, for indus-
tries with stringent hygiene requirements and on pumping systems for the marine industry and 
the offshore market.
Efﬁcient and precise
The company’s pumps, valves and installation material are used in production processes 
with strict hygiene requirements, such as the production of beverages, dairy products, 
food and pharmaceuticals.
Pumps drive the ﬂow of liquids, while valves are used to guide the ﬂow by opening and 
closing. For hygienic applications, Alfa Laval mainly offers centrifugal, liquid ring and rotary 
lobe pumps. The most common types of valves include control valves, constant-pressure 
valves, butterﬂy valves and diaphragm valves. The offering also includes hygienic tank 
equipment ranging from mixers to cleaning equipment. Mixers can be used to mix both 
high and low-viscosity ﬂuids, such as milk, wine, juice, yoghurt, desserts and fruit drinks. 
For the marine sector, Alfa Laval offers submerged, hydraulic pumping systems for 
product and chemical tankers. These systems enable safe and ﬂexible load handling, 
which results in less time in port and fewer journeys without commercial loads. For the 
offshore industry, the offering includes pumping systems for collecting sea water for 
various onboard applications, water injection in drill holes and ﬁre extinguishing, which 
contribute to safe and efﬁcient operation.
Business units with ﬂuid handling 
products in their range
FOOD & WATER DIVISION
•  Food Systems
•  Hygienic Fluid Handling
MARINE DIVISION
•  Pumping Systems
Fluid handling
Competitors
Market position
Sales
1
22%
10–15 percent of the world market.
Share of Group sales.
 Bardiani Valves (Italy)
 Dockweiler Edelstahl (Germany)
 Fristam (Germany)
 GEA (Germany)
 Kieselman GmbH (Germany)
 MARFLEX (Netherlands)
  SPX FLOW/APV (US)
 SULZER (Switzerland)
23

24
Three industry-based  
divisions and a shared 
supply chain
Realizing Alfa Laval’s business concept – “to optimize the performance of 
our customers’ processes, time and time again” – requires a solid product 
offering, high technological competence and a structure that is fast moving 
and has a high level of insight into the customers’ needs, purchasing 
behavior and processes. Accordingly, Alfa Laval has established three 
industry-based sales divisions: Food & Water, Energy and Marine, which 
are supported by Operations, the Group’s shared supply organization 
with responsibility for procurement, manufacturing and distribution.

25
Division overview
Food & Water
The division targets customers in industries such as: food, pharma-
ceuticals, biotech, vegetable oils, breweries, dairy and personal 
care products. In addition, it focuses on public and industrial water 
treatment as well as wastewater and waste treatment.
Energy
Energy efﬁciency is a focus area in order to help customers to reduce their 
energy consumption, which is beneﬁcial both from a ﬁnancial and environ-
mental point of view. The division has customers in heating, ventilation and 
cooling, oil and gas extraction, reﬁneries, petrochemicals and power generation. 
Marine
The division’s customers include shipowners, ship yards, manufacturers 
of diesel and gas engines and companies that specialize in offshore 
extraction of oil and gas.
Operations
Operations is responsible for the Group’s production-related procure-
ment, manufacturing, distribution and logistics. This centralized, co-
ordinated and global supply chain creates the necessary prerequisites 
to ensure reliable access to the company’s products worldwide.
Share of Group  
order intake
Share of Group  
order intake
Share of Group  
order intake
Operating margin
Operating margin
Operating margin
Aftermarket’s share  
of the division
Aftermarket’s share  
of the division
Aftermarket’s share  
of the division
17.7%
15.4%
17.4%

Food & Water
26

Food & Water Division
0
3,000
6,000
9,000
12,000
15,000
20
19
18
17
0
500
1,000
1,500
2,000
2,500
0
3,000
6,000
9,000
12,000
15,000
20
19
18
17
SEK MILLION
SEK MILLION
Sweden, 4%
Other, 2%
Other
EU, 26%
Asia, 30%
Other
Europe, 6%
North America, 26%
Latin America, 6%
Sales
Sales and operating proﬁt
Operating proﬁt
Order intake
11,824
13,210
14,189
13,414
12,388
13,691
14,026
13,814
Nish Patel
President, Food & Water Division
 
The year in brief
The division maintained a solid business level in 2020, despite un-
certain macroeconomic conditions following COVID-19. However, 
business was conducted in a more digital way, which helped us 
to make further progress on our digitization journey. The division 
reached the end of the ﬁrst strategy period since the launch of the 
new organization in 2017, with several strategic goals achieved: 
Product launches continued at a rapid pace in 2020, carried out 
across the technological platforms within separation, decanters and 
high-speed separators (HSS) as well as ﬂuid handling. Connectivity 
is now available for a signiﬁcant portion of all new equipment sold, 
allowing for easier and more efﬁcient future service and monitoring. 
One major breakthrough achieved by the division was the launch 
of the new single-use, high-speed separator CultureOne. The 
technology, which allows the HSS insert to be both replaced and 
recycled, was developed for the pharma and biotech industry to 
ensure compliance with strict hygienic requirements. Another milestone 
was achieved in the area of hydrogenated vegetable oil (HVO) and 
biodiesel, where Alfa Laval’s technology helps to reduce the consump-
tion of fossil fuel and supports the company’s sustainability targets. 
Customer-centricity is our number one focus area, and close customer 
cooperation around innovation is also key. The Hygienic Fluid Handling 
Business Unit opened the division’s second major technology-speciﬁc 
application and test center in Kolding, Denmark. Here, customers 
will have the opportunity to test their food or pharma end-products 
on Alfa Laval ﬂuid handling equipment under everyday conditions 
in order to validate their performance, optimize their processes 
and drive innovation.
The division’s diligent work to further expand its network of sales 
channels – meaning distributors and integrators – continued to pay off. 
New means of marketing have been added and made even more 
accessible through existing, well-functioning e-business and online 
tools, all to improve customer interaction through enhancements 
in speed and simplicity, thereby improving the customer experience. 
More service contracts are now being signed in connection with new 
equipment. The share of connected products has further increased, 
creating an even bigger opportunity for after-sales and service, and 
enabling preventive maintenance and uptime to be optimized. Remote 
guidance, a tool developed to mitigate restrictions with respect to 
physical access to customer sites during the pandemic, proved to 
be a valuable contributor to service growth.
27

The Food & Water business
Offering
Alfa Laval’s three key technologies are 
all included in the offering. This encom-
passes different types of heat transfer 
and separation products as well as ﬂuid 
handling equipment such as pumps 
and valves.
Way to market
The division’s business comprises sales 
of components, conﬁgured products and 
projects. This means that in addition to 
direct customer sales, the division also 
reaches end customers via system 
builders, contractors, retailers, agents 
and distributors.
Target industries
The division targets customers in indus-
tries such as food, pharmaceuticals, 
biotech, vegetable oils, breweries, dairy 
and personal care products, to name a 
few examples. It also focuses on public 
and industrial water treatment as well 
as wastewater and waste treatment.
The division has ﬁve technology-based units. These units have full proﬁt and loss respon-
sibility and are responsible for driving the global business for a deﬁned group of products,
covering everything from product development to marketing, sales and service.
Business units
High Speed Separators
High-speed separators for breweries, dairies and vegetable oil reﬁneries as well as for applications in
pharmaceuticals, biotech, ethanol, starch and sugar. 
Share of division’s 
order intake
Food Systems
This unit integrates Alfa Laval’s core technologies into process solutions for the food sector, especially 
targeting breweries, vegetable oils, meat and ﬁsh processing, fruit and vegetable processing as well 
as fermentation and starch and sugar processing.
Share of division’s 
order intake
Hygienic Fluid Handling
Component sales of pumps, valves, installation material and tank equipment for hygienic applications 
in the food and pharmaceutical industry.
Share of division’s 
order intake
Food Heat Transfer
Provider of gasketed, tubular, brazed, welded and scraped-surface heat exchangers – to name a
few examples – to a wide range of industries such as food, breweries, dairies, pharmaceuticals, eth-
anol, sugar and starch.
Share of division’s 
order intake
Decanters
Decanter centrifuges, presses, ﬁlters and membranes as components or modules for food or life science 
applications as well as waste management such as dewatering of sludge in municipal wastewater 
treatment plants, or water treatment for industrial wastewater.
Share of division’s 
order intake
28
18%
12%
35%
16%
19%

Food & Water Division
Structural growth  
drivers
Food
A growing number of people are joining the middle class,  
urbanization is continuing at an undiminished rate and women 
now account for a higher percentage of the workforce. This is 
contributing to growing demand for ready-made food and the 
development of more efﬁcient supply chains with the capacity 
to reduce waste.
Alfa Laval’s history began in 1883 with the development of a separator for separating 
cream from milk. Since then, the company’s offering for hygienic applications in 
the food industry has been expanded to include heat exchangers, pumps and 
valves. These products meet the strictest hygiene requirements and can help to 
optimize the use of raw materials. Alfa Laval can also help to reduce waste by 
offering cooling solutions for transport and storage.
Environment
Human impact on the environment is coming under greater 
scrutiny, resulting in new, increasingly stringent laws. In parallel 
with this, a sustainability mindset has also evolved and is 
encouraging companies to voluntarily take steps that con-
tribute to environmental improvements.
Alfa Laval has a wide range of products for managing various environmental 
problems. The Food & Water division offering includes decanter centrifuges to 
dewater sludge in municipal wastewater treatment plants and they are also involved 
in handling industrial waste and water. Within food manufacturing, Alfa Laval 
offers processes and solutions that can reduce waste by increasing the yield.
p
offering cooling solutions for transport and storage.
Food & Water Division
middle class, 
d rate and women
workforce. This is
ade food and the
with the capacity 
separator for separating
ygienic applications in
hangers, pumps and
ments and can help to 
p to reduce waste by
29

30
Major end markets
Dairies
Hygienic products for dairy processes – everything from treating whey, milk and cream 
to the production of ice cream, cheese, sour cream or yogurt. Includes separators, 
heat exchangers, tank cleaning equipment, membranes, pumps and valves. 
Share of division’s  
order intake
Water and waste management
Products and solutions for municipal wastewater management and for treating industrial 
water and waste. The offering includes decanter centrifuges, belt ﬁlter presses, spiral 
heat exchangers, shell-and-tube heat exchangers and membrane bioreactors.
Share of division’s  
order intake
Ethanol, starch and sugar
Separators, decanter centrifuges, heat exchangers and evaporation systems are 
used in the production of starch and sugar, which are the raw materials for ethanol 
production. 
Share of division’s  
order intake
Protein
Products used to recycle protein, fats and oils from residual vegetable and animal 
products for the production of everything from gelatin, ﬁsh oil and ﬁsh meal to bone 
meal, surimi and animal feed. The portfolio includes separators, decanter centrifuges, 
evaporation systems, membranes, heat exchangers and boilers.
Share of division’s  
order intake
Breweries
Products for all steps of the brewing process, from production of mash and wort to 
fermentation, ﬁltration and pasteurization. The range includes separators, membranes, 
decanter centrifuges, mixing equipment, plate heat exchangers, pumps, valves, 
run-off water systems and pasteurizing modules. 
Share of division’s  
order intake
Pharmaceuticals and biotech
Pumps, valves, separators, membranes, decanter centrifuges, tank cleaning equipment 
and heat exchangers suitable for use in the production of liquid or solid medicine, vaccines, 
creams or ointments – processes that are very demanding in terms of hygiene.
Share of division’s  
order intake
Edible oils 
Separators, decanter centrifuges, heat exchangers and pumps are some of the products 
offered for the production of oils from rapeseed, olive, soy beans or ﬁsh, oils that 
need to be treated to meet customer demands regarding color, taste and nutrition. 
Share of division’s  
order intake
Other (also referred to as “Prep. Food & Beverage” in the Group’s ﬁnancial reporting)
All of the end markets mentioned above are included in this category. A large share 
of sales is difﬁcult to allocate to a speciﬁc end market since these sales are carried 
out through various channels (distributors, retailers, agents, etc.). This share of sales 
is summarized and presented here as “Other.”
Share of division’s  
order intake
24%
11%
9%
6%
7%
10%
11%
20%
Other: 2%

SUSTAINABILITY
Processes make it  
possible to utilize  
the entire ﬁsh
 
The earth’s population is increasing at an undiminished 
rate and is expected to reach nine billion people by 2050. 
Food production that is both efﬁcient and sustainable is 
essential for responsible resource management. One 
company that truly takes this seriously is Pelagia in Norway, 
a world-leading company specializing in pelagic ﬁsh 
products. In their facility in Måløy, Norway, Pelagia uses 
100 percent of the mackerel they ﬁsh, which in addition 
to ﬁllets become ﬁsh meal, oils and protein. Everything is 
used to produce food and nutrition for human consump-
tion, resulting in no food waste. In the process of extracting 
these high-quality ﬁsh products, Pelagia uses various 
Alfa Laval equipment, including pumps, valves, heat ex-
changers, high-speed separators and decanters. Alfa 
Laval is also responsible for service and maintenance of 
several process lines at their facilities along the Norwe-
gian and UK coasts. The company’s service organization 
works closely with Pelagia’s operating engineers, thereby 
ensuring that the process lines run optimally and that a 
high level of product quality is maintained. The proximity 
of service and spare parts is essential, since the pelagic 
season is short, and downtime or disturbances would 
have severe consequences for Pelagia. The factories, 
dubbed “The Promise to the Sea,” is an expression of 
Pelagia’s ambition to produce food as sustainably as 
possible and with great respect for the ﬁsh and the ocean.
Food & Water Division
INNOVATION
Additional innovation 
center strengthens  
focus on development
  
Vegetarian products, vegan cooking, alcohol-free beer 
and ﬂavorful oils are just a few examples of how trends 
and taste preferences steer the daily operations of food 
producers. Changing consumer trends fuel demand for 
new food products, which in turn creates a need for 
ﬂexible processing equipment. Food producers are also 
always looking for more efﬁcient and sustainable processes 
to get more out of their raw materials while saving water 
and energy. Simply put, the food industry depends on 
innovation. Alfa Laval works close to its customers – the 
food producers themselves – and helps them make their 
processes more sustainable while adapting and optimizing 
them in the face of new conditions and needs. All of this 
requires a responsive and ﬂexible approach as well as 
R&D that enables a product program that reﬂects current 
and future needs. To increase the development rate of 
new ﬂuid handling products and solutions for the food 
and pharmaceutical industries, Alfa Laval opened its 
third innovation center for food and water applications in 
Denmark during the year, this time in Kolding, Jylland. 
(There are already similar test centers for decanters in 
Søborg and for membrane ﬁltration in Nakskov.) The 
new 1,600-square-meter center in Kolding will become 
a global test facility for new products where customers 
will also be able to study the performance of Alfa Laval’s 
equipment under real operating conditions. It will further 
strengthen Alfa Laval’s global position in food and pharma-
ceuticals, which is an important growth area for the company.
31

32
32
32
Energy

Susanne Pahlén Åklundh
President, Energy Division
 
The year in brief
0
3,000
6,000
9,000
12,000
15,000
20
19
18
17
0
500
1,000
1,500
2,000
2,500
0
3,000
6,000
9,000
12,000
15,000
20
19
18
17
SEK MILLION
SEK MILLION
Sweden, 3%
Other, 2%
Other
EU, 27%
Asia, 36%
Other
Europe, 7%
North America, 21%
Latin America, 4%
Sales and operating proﬁt
Order intake
11,001
12,413
13,814
12,187
11,175
12,685
13,963
11,952
Sales
Operating proﬁt
33
33
33
As a result of COVID-19 and falling oil prices, the division had a 
lower order intake in 2020 compared to last year. Trends were 
negative in most of the major industries in which we operate. 
Naturally, the slowdown was larger among oil and gas customers, 
while sales remained stable in industries such HVAC and Refriger-
ation, which meant that brazed heat exchangers were the part of 
the division that performed the best during the year.
Continued investments in energy efﬁciency within the reﬁnery and 
petrochemical industry helped generate several major orders for 
welded heat exchangers throughout the year, which has dampened 
the effect of COVID-19.
The division continued to invest in increased capacity in existing 
production units, and in the construction of an entirely new, state-
of-the-art production facility in Italy. The new facility will allow us to 
better meet the growing demand from HVAC customers. 
An entirely new product platform for gasketed heat exchangers entered 
the next phase and generated a steadily increasing order intake. 
Sales via digital channels also performed well during the year. 
E-commerce and online advisory services are becoming even more 
important competitive factors, and Alfa Laval continued its work to 
make more products accessible via global e-commerce solutions.
Service was negatively affected by employees’ inability to access some 
of our customers’ production facilities due to the risk of infection.  
Energy Division

The Energy business
Offering
Heat transfer is the main technology 
offered, comprising everything from 
gasketed plate heat exchangers for gentler 
applications to different types of welded 
heat exchangers for more demanding 
applications. Separation technology is 
the other main technology offered – both 
high-speed separators and decanter 
centrifuges.
Way to market
The Energy division’s business comprises 
sales of components, conﬁgured prod-
ucts and projects. This means that in 
addition to direct customer sales, the 
division also reaches customers via 
system builders, contractors, retailers, 
agents and distributors.
Target industries
The division targets customers in markets 
such as: oil and gas extraction, oil and 
gas processing and transport, reﬁneries, 
petrochemicals and power generation. 
The division also works with construction- 
related applications, such as heating, 
ventilation and cooling, and has an offering 
for customers in the mining and metal 
industries and lighter industries, to name 
a few examples. Energy efﬁciency is a 
focus area in which the division helps its 
customers to reduce their energy con-
sumption, which is beneﬁcial both from a 
ﬁnancial and environmental point of view.
The division has four technology-based business units. These units have full proﬁt and
loss responsibility and are in charge of driving the global business for a deﬁned group of 
products, covering everything from product development to marketing, sales and service.
Business units
Brazed & Fusion Bonded Heat Exchangers
A majority of this business goes to applications within HVAC such as heating, ventilation, air condi-
tioning and cooling. This unit is largely driven by energy efﬁciency, transformation from fossil heating 
and new sustainable refrigerants. Part of the business targets applications for engines, such as 
cooling of engines on off-road vehicles or leisure boats, as well as cooling and cleaning of liquids in
the light manufacturing industry.
Share of division’s 
order intake
Energy Separation
The business unit delivers separation solutions for the process industry and the circular economy, with 
a focus on puriﬁcation and recycling of industrial process ﬂows and residual streams, production of 
green chemicals and bio-fuels. The offer mainly consists of high-speed separators, decanter centri-
fuges, evaporation solutions and fresh water generators.
Share of division’s 
order intake
Gasketed Plate Heat Exchangers
While this business unit is responsible for supporting all three divisions and thus has an extremely
wide product range, its focus in the Energy division is on supplying gasketed plate heat exchangers 
for HVAC, cooling, engine cooling, chemical processing, oil production and power generation.
Share of division’s 
order intake
Welded Heat Exchangers
All types of welded heat exchangers such as compact plate heat exchangers, spiral heat exchangers, 
tube heat exchangers and special air coolers. They are mainly delivered to process applications with 
high pressures and temperatures in reﬁning, petrochemicals and gas processing where the customer 
has high demands on operational reliability, energy efﬁciency and CO2 reduction.
Share of division’s 
order intake
34
22%
10%
45%
23%

Structural growth  
drivers
Energy
The world’s energy needs are continuing to intensify – at a faster 
rate in some areas of the world than others. There are two ways 
to handle this challenge: increase the total energy production 
and make greater use of technologies that enable more efﬁcient 
use or recycling of the energy generated.
With its compact heat exchangers at the heart of its solutions, Alfa Laval’s products 
play an important role in the efforts to make the world’s industrial processes more 
energy efﬁcient. The offering encompasses products and solutions for oil and gas 
extraction, power production, renewable fuels, reﬁnement and much more. 
Environment
Human impact on the environment is coming under greater 
scrutiny, resulting in new, increasingly stringent laws. In parallel 
with this, a sustainability mindset has also evolved and is en-
couraging companies to voluntarily take steps that contribute 
to environmental improvements.
Alfa Laval has a wide range of products for managing various environmental 
problems. The Energy division’s efﬁcient heat exchangers and its focus on 
recovering waste heat create an opportunity for substantial energy savings 
and a reduction in CO2 emissions for the customer.
Energy Division
g under greater 
t laws. In parallel 
olved and is en-
s that contribute 
ous environmental
s and its focus on
al energy savings
Energy
The world’s energy needs
rate in some areas of t
to handle this chall
and make great
use or recycl
With its c
play a
en
35

36
Major end markets
Other: 6%
HVAC
Alfa Laval’s heat exchangers help create a comfortable indoor climate in houses, 
warehouses, public buildings, hotels, ofﬁce complexes and athletic facilities all over 
the world. They can also be used in data centers and for cold storage. They are even 
used within district heating and cooling systems and to heat tap water for both single- 
and multi-family residences.
Share of division’s  
order intake
Oil and gas
Includes drilling, processing, production and transportation of oil and gas. Within 
drilling, Alfa Laval offers heat exchangers and decanter centrifuges for mixing, cooling 
and cleaning drilling mud. Alfa Laval’s products can be used in some 40 applications 
within oil and gas processing/production/transportation. Products are also offered for 
efﬁcient waste management. 
Share of division’s  
order intake
Petrochemicals
The range includes plate heat exchangers and shell-and-tube heat exchangers for use 
in a number of processes connected to the production of organic base chemicals, 
ﬁne chemicals, intermediate petrochemicals, polymers and ﬁbers. 
Share of division’s  
order intake
Manufacturing industry/metal working
Alfa Laval offers heat exchangers and separators for heating/cooling and cleaning 
industrial ﬂuids within metal working. They can also be used to cool and/or ﬁlter 
hydraulic oil and lube oil.
Share of division’s  
order intake
Reﬁneries
In a reﬁnery, crude oil is divided into different components that are then reﬁned to 
useful products like naphtha, heating oil, aircraft fuel and diesel. Alfa Laval’s heat 
exchangers are designed to withstand the high pressure and temperatures in the 
different processes at a reﬁnery.
Share of division’s  
order intake
Refrigeration
Encompasses everything from industrial deep freezing and cold storage to cooling ice 
rinks. The offering for the food industry includes air-cooled and plate heat exchangers 
for cooling slaughterhouses, spaces for handling ﬁsh and meat, for storing fresh 
goods and for cooling or heating greenhouses. 
Share of division’s  
order intake
Power generation 
Alfa Laval’s heat exchangers, separators, ﬁlters and boilers can be used in a number of 
processes in the power sector – regardless of which energy source is used to generate 
the electricity. They can even be used in capturing and storing carbon dioxide, or for 
storing concentrated solar energy.  
Share of division’s  
order intake
Inorganic chemicals 
Equipment for heat transfer, separation, condensation and evaporation applications 
for producing inorganic base chemicals like hydrogen peroxide, caustic soda, sulphuric 
acid and soda ash. 
Share of division’s  
order intake
27%
13%
13%
13%
8%
7%
7%
6%

Energy Division
SUSTAINABILITY
Waste heat from  
data centers warms  
homes
 
YouTube, e-mails, streaming services...our digital lives
rely on powerful servers that manage all of the data
transmitted around the world. Placed in large data cen-
ters, these servers generate a lot of heat that needs to 
be removed so that the servers function optimally and 
without interruption. Alfa Laval has heat exchangers that 
efﬁciently cool these servers to the right temperature. 
Not only that, they can also handle the waste heat gen-
erated and convert it to district heating that can then be 
used to warm homes. Smart and sustainable. Today, 
waste heat from only 20 percent of our data centers is 
handled this way. In other words, there is great potential 
for waste heat solutions. Calculations show that by 2030 
if all data centers would recover the waste heat from the 
servers it could save 3,000 TWh, which corresponds to 
heating 300 million European homes. The Nordic region 
is well suited for these waste heat solutions, since we 
have infrastructure in place in the form of an expanded 
district heating network and solutions are already in-
stalled in several places. One example is a data center in 
Denmark, where Alfa Laval’s heat exchangers convert all 
of the 100,000 MWh of waste heat generated annually 
to warm 6,900 households in the region. The most sus-
tainable heat source is the heat that is already available. 
The only challenge is using it correctly.
INNOVATION
Ground-breaking  
experiment to study  
stainless steel
  
Stainless steel is an essential material in many of Alfa 
Laval’s products: separators, ﬂuid handling equipment 
and, not least, heat exchangers. The plates in a heat ex-
changer must be able to withstand the intense pressure 
of the liquids that are cooled and heated, and the thin 
coating of oxide on stainless steel that protects against 
corrosion is essential for the heat exchanger’s durability. 
It goes without saying that the more we know about 
how this oxide behaves at different temperatures, the 
more efﬁciently we can conduct research and product 
development. That is why during the year, Alfa Laval 
conducted a unique and ground-breaking experiment – 
together with senior researchers at Lund University – at 
MAX IV in Lund, Sweden, which is the world’s most 
modern synchrotron radiation facility, using the most in-
tense radiation ever generated. At this facility, researchers 
can study atoms and molecules with a diameter of only 
a few tenths of a nanometer, providing entirely new 
knowledge about the world and how it works. And how 
long is a nanometer? Well, take a strand of hair and slice 
it lengthwise into 30,000 pieces...each of these layers would 
be as thick as the oxide that Alfa Laval studied in the ex-
periment. For the ﬁrst time ever, the thin oxide layer could 
be photographed at high temperatures, thanks to the 
microscope’s extremely high resolution. The study pro-
vided valuable information about the material, and the 
results are now being analyzed and used in Alfa Laval’s 
product development, all for the sake of ensuring the 
company’s future competitiveness.
37

38
Marine

39
0
5,000
10,000
15,000
20,000
20
19
18
17
0
1,000
2,000
3,000
4,000
0
4,000
8,000
12,000
16,000
20,000
20
19
18
17
Sweden, 1%
Other, 1%
Other
EU, 24%
Asia, 53%
Other
Europe, 12%
North America, 6%
Latin America, 3%
Sales and operating proﬁt
Order intake
15,867
10,809
13,583
17,993
14,067
11,456
17,322
15,953
SEK MILLION
SEK MILLION
Sales
Operating proﬁt
Sameer Kalra
President, Marine Division
 
The year in brief
Marine Division
2020 began with expectations of growth in the marine market, 
and the ﬁrst quarter got off to a strong start. However, the macro-
economic trend, primarily driven by the COVID-19 pandemic, had 
a negative effect on demand starting in the second quarter. At the 
same time, the organization handled the rapid changes well, with-
out disruptions to the supplier chain or deliveries to customers. 
The division was primarily affected by two major events in 2020: 
COVID-19 and low oil prices. Travel restrictions affected portions of 
new sales and aftermarket transactions due to fewer opportunities 
to board vessels. During the autumn and winter, there were more 
opportunities to provide service and demand began to gradually 
recover. The difference in price between heavy fuel oil and fuel with 
a low sulphur content reduced drastically when the price of oil fell 
during the ﬁrst four months of the year. This led to reduced demand 
for exhaust gas cleaning systems in 2020. The low price of oil also had 
a negative impact on demand in offshore, primarily towards the end 
of the year. However, demand for ballast water treatment systems 
remained healthy. As of 2019, legislation based on the International 
Maritime Organization (IMO) convention stipulates that vessels already 
in use will need to install ballast water treatment systems by 2024. 
Vessel contracting has remained at relatively low levels for several 
years, and this trend continued in 2020. Uncertainty increased 
dramatically due to the pandemic and the deteriorating economic 
outlook, which meant shipping companies delayed ordering new 
vessels. The low level of vessel contracting had a negative impact 
on Alfa Laval’s order intake, but this was mitigated somewhat by 
the favorable mix of contracted vessels.
Alfa Laval has continued to develop its service offering and, over 
the last few years, has dramatically increased the number of trained 
service technicians. The company’s strong geographic reach also 
made it possible to maintain good availability, despite the difﬁculties 
with traveling during the pandemic. At the same time, the challenges 
of COVID-19 also led to increased demand for connected solutions, 
remote support and service agreements, primarily within environ-
mental products.
The marine industry is working to develop a joint solution for the 
phase-out of fossil fuel, and this discussion gained further traction 
in 2020. There is as of yet no consensus, but most expect a period 
of transition fuel with lower carbon emissions. Alfa Laval aims to 
be a driving force in this transition and expects that this will fuel 
demand for the company’s energy-efﬁcient solutions. Alfa Laval 
looks forward to contributing to a more environmentally friendly 
marine industry in the future, and our work to stay at the cutting 
edge continued in 2020.

The Marine business
Offering
The offering includes heat transfer 
equipment, high-speed separators and 
pumping systems as well as different 
environmental products such as ballast 
water treatment systems.
Way to market
The division’s sales force targets cus-
tomers directly. Its customers are well 
deﬁned and limited in number – so a 
direct approach is possible with a limited 
sales force.
Target industries
The division’s customers include ship-
owners, ship yards, manufacturers of 
diesel and gas engines and companies 
that specialize in offshore extraction of 
oil and gas.
The division has four technology-based business units. These units have full proﬁt and
loss responsibility and are responsible for driving the global business for a deﬁned group
of products, covering everything from product development to marketing, sales and service.
Business units
Pumping Systems
Cargo pumping systems for product and chemical tankers and pumping systems for utilities and 
safety applications on board offshore platforms.
Share of division’s 
order intake
Gas Systems
The unit supplies inert gas systems and exhaust gas scrubbers to customers in the marine industry. 
Share of division’s 
order intake
Boiler Systems
Boilers, heat recovery systems, gas combustion units and thermal ﬂuid systems primarily for the marine 
sector but also for engine-generated power and industrial applications on land. 
Share of division’s 
order intake
Marine Separation & Heat Transfer Equipment
High-speed separators, heat exchangers, ballast water treatment systems and ﬁlters are some of 
the products that this unit offers to the marine industry and diesel and gas-engine manufacturers.
Share of division’s 
order intake
40
31%
9%
15%
45%

Marine Division
Structural growth drivers
International trade – globalization
Global trade helps to connect a world where raw materials are 
extracted in one country and processed in another, after which 
the end products are transported to customers across the globe. 
Shipping is the most efﬁcient – and at the same time economical 
– transport solution, which is why approximately 90 percent of 
commercial tonnage is now shipped by sea.
Alfa Laval has delivered equipment to the marine industry since 1917. It started 
in the engine room with separators for cleaning lube oil and has since grown to 
include everything from heat exchangers for generating fresh water to pumping 
systems for efﬁcient loading and unloading.
Environment
Human impact on the environment is coming under greater 
scrutiny, resulting in new, increasingly stringent laws. In parallel 
with this, a sustainability mindset has also evolved and is 
encouraging companies to voluntarily take steps that con-
tribute to environmental improvements.
Alfa Laval’s Marine division offers a number of solutions that reduce the impact 
on the environment, such as systems for treating ballast water, lowering the 
sulphur content in ships’ exhaust or cleaning the bilge water on board.
Intern
Global trad
extracted 
the end pro
Shipping is
– transpor
commercia
Alfa Laval has
in the engine 
include every
systems for e
ater 
arallel 
is
on-
mpact
g the 
41

42
Major end markets
Offshore
The offering for oil and gas platforms includes 
pumping systems for ﬁre extinguishing or to pump 
sea water for different onboard applications, inert 
gas systems and emergency power generators. 
Engine power
Engine-generated power is used in places that 
are not connected to the power grid. It is also used 
for back-up power during blackouts, to manage 
peaks in demand when the power grid is not enough 
or as a supplement for solar or wind energy. Alfa 
Laval offers modules for ﬁre extinguishing, sepa-
rators for cleaning crank case gases, and heat 
exchangers for different cooling applications. 
Shipbuilding and maritime transport
Alfa Laval has a broad offering of products and 
systems for installation onboard vessels. The 
offering includes systems for cleaning and treating 
fuel, pumping systems for loading and unloading, 
boilers, fresh water generators, inert gas systems, 
systems for treating lubricants and tank cleaning 
equipment.
Other: 1%
Share of division’s  
order intake
8%
Share of division’s  
order intake
15%
Share of division’s  
order intake
76%

SUSTAINABILITY
Marine environmental 
products contribute to 
sustainable maritime 
transport
 
In the last few years, the marine industry has undergone 
major changes, not least within sustainability. New rules 
and ordinances from the IMO have entered into force and 
limited hazardous emissions to both air and water. Today, 
there are clear benchmark values for matters such as 
ballast water treatment, waste water treatment and the 
sulphur content of exhaust gas from vessels. These new 
environmental rules have also accelerated the industry’s 
conversion to new kinds of fuels. Over the next 30 years, 
the shipping industry’s fuel mix is expected to transition from 
being almost entirely oil-dominated to a mix of low-carbon 
or carbon-free fuel. During the transition period away from 
carbon fuel, liquid natural gas (LNG) will be an important 
fuel. But this will also give rise to an emissions source that 
previously went unnoticed, namely methane – the small 
portion of methane that is released through the engine 
when burning LNG. Even if LNG emits less carbon dioxide 
than other fossil fuels, methane has a greater impact on 
global warming. There are currently no rules for methane 
emissions, but the problem needs to be addressed since 
the marine industry’s goal is to reduce its greenhouse gas 
emissions by half by 2050. That is why Alfa Laval has 
launched a new marine environmental system, Alfa Laval 
PureCool, which when combined with WinGD’s iCER 
technology reduces methane emissions from vessels’ 
gas engines and ensures more sustainable operation. 
The new PureCool system is the latest addition to Alfa 
Laval’s comprehensive portfolio of marine environmental 
products, which help shipping companies comply with 
regulations and protect our marine environment. 
INNOVATION
Eyes on the future –  
increased test capacity 
for biofuel
  
The IMO’s goal is to reduce the marine industry’s emissions 
of greenhouse gases by half by 2050. New, more environ-
mentally friendly types of fuel like LNG and biofuel are 
gradually starting to replace traditional heavy diesel oil. 
This transformation means that shipping companies 
need to adapt their vessels’ machine rooms and engines 
to new conditions. It goes without saying that it is of the 
utmost importance that the installed products should be 
tested and approved – and, moreover, be adapted to the 
vessels’ particular conditions to the greatest extent pos-
sible. At Alfa Laval’s marine test and training center in 
Aalborg, Denmark, customers can be a part of testing 
and evaluating Alfa Laval’s equipment in conditions that 
closely resemble real life. The 2,800-square-meter facility 
is essentially a vessel engine on land, equipped to han-
dle fuel like oil and gas. This is where new products for 
the marine industry are developed, tested and optimized. 
After opening the testing facility in 2014, Alfa Laval has 
regularly expanded it. The latest additions are two 25 m3 
stainless steel tanks that were installed to test biofuel. These 
will doubtless play a major role in helping the marine in-
dustry reach the IMO’s climate goals. Biofuels have varying 
characteristics since they come from different sources. That 
is why being able to study how engines and processes 
work with different types of biofuel is important for Alfa 
Laval’s future product development and optimization. 
The company will now have the opportunity to acquire 
this unique knowledge, which will provide competitive 
advantages in the future.
Marine Division
43

44
Mikael Tydén
President, Operations
Strong production and  
supplier structure
Operations is Alfa Laval’s group-wide organization that handles the 
group’s purchasing and manufacturing and its logistics and distribution. 
Operations also pursues strategic activities in the production chain, 
such as optimizing the overall manufacturing footprint, automation 
and digitization and sustainability matters.
Operations
Manufacturing
Alfa Laval’s production structure is based on its three key technol-
ogies and organized to provide the most even capacity utilization 
possible across its production units. Products are sold within all 
divisions and are therefore ultimately found in a number of different 
application areas and processes. A common technological foundation 
makes it possible to consolidate production to shared units – 
regardless of whether the individual products are for customers in 
Marine, Food & Water or Energy. 
At year-end 2019, Alfa Laval had 37 major manufacturing units, 
spread across Europe, Asia, the US and Latin America. During the 
year, Operations experienced rapid ﬂuctuations in order intake and 
deliveries, which was a challenge in itself. On top of this, the orga-
nization continued to implement selective capacity expansions in 
certain areas while efforts to concentrate certain manufacturing to 
fewer sites were completed. In 2020, two major production facilities 
were closed: one unit in Søborg, Denmark and another in Sarole, 
India. A distribution unit in Mumbai was consolidated with a pro-
duction facility in Pune, India. In early 2020, Alfa Laval moved to an 
entirely new factory in Qingdao, China. This is the world’s largest, 
most state-of-the-art factory for manufacturing of products such 
as boilers. From a short-term perspective – that is, in the division’s 
daily work – the focus was on sustainability, lead times, quality, 
productivity and cost. From a long-term perspective, the focus was 
on strengthening the manufacturing process by ensuring the right 
competence is in place, investing in new production technologies, 
assessing opportunities related to automation, digitization and 3D 
printing, and ensuring that the results lead to improvements in 
health, safety and the environment.

Operations
45
 US (1)
 Sweden (2)
 Denmark (1)
 China (1)
 Singapore (1)
 Japan (1)
 India (1)
Distribution centers, Operations
Investments by geographic 
market, %
Procurement by geographic market, %
Geographic distribution of the number of 
directly worked hours in production, %
1 North America 
6%
2 Latin America 
2%
3  Western Europe 
29%
4 Central and Eastern Europe 
3%
5 Asia 
60%
1 North America 
4%
2  Western Europe 
66%
3 Central and Eastern Europe 
2%
4 Asia 
28%
1 North and Latin America 
6%
2 Asia 
25%
3 Central and Eastern Europe 
5%
4 Western Europe 
64%
3
2
2
1
1
4
4
5
2
1
3
3
4
 US (6)
 Brazil (2)
 Sweden (4)
 Norway (3)
 Denmark (2)
 Russia (1)
 India (2)
Alfa Laval’s production includes 35 major  
manufacturing units:    
Production units
 Korea (2)
 China (4)
 Japan (1)
 UK (1)
 France (4)
 Italy (2)
 Poland (1)
3
2
1
4
Transport 2020
1 Road 
68%
2 Sea 
24%
3 Air 
6%
4 Railway 
1%
Procurement
The procurement organization handles all of Alfa Laval’s needs for 
direct as well as indirect materials, for all factories and distribution 
centers. The largest item in the cost of goods sold is direct mate-
rials – accounting for a full 70 percent – and any improvements 
possible within this area are therefore extremely valuable. The or-
ganization handles procurement of a variety of goods and raw 
materials, such as aluminum, stainless steel, titanium, cast metal, 
forged iron, machinery, electrical equipment and fasteners, to name 
a few examples. It is also responsible for the purchase of goods 
outside the manufacturing process, such as software, consulting 
services, hardware, telecommunications and company cars.
When it comes to procurement, there are many parameters to 
take into consideration. Cost is a factor, but it is one of many. It 
must be weighed against quality, dependability, delivery capacity 
and reliability; at the same time, the supplier needs to meet Alfa 
Laval’s Business Principles concerning the environment, health 
and safety. Alfa Laval has a platform for auditing suppliers, which 
simpliﬁes assessments so that comparable results are obtained.
Alfa Laval’s shared supply chain is a strength. The company can 
consolidate the demand for metals and other products/goods for 
all production units, achieve economies of scale and gain leverage 
in negotiations right from the start. At the same time, the right work 
method can generate considerable savings. Training and process 
development are carried out on an ongoing basis to ensure a uni-
form and structured work method, regardless of where in the world 
the buyer is located. This includes incorporating an ever-larger 
portion of the total procurement volumes into global contracts, 
which reduces the number of suppliers, reduces costs and mini-
mizes complexity.
Procurement also manages the development of existing and new 
suppliers in order to optimize Alfa Laval’s current value chains and 
future needs through cooperative projects and product development. 
These factors must be weighed against the supplier’s technical 
ability, quality, dependability, delivery capacity and reliability; at the 
same time, the supplier needs to meet Alfa Laval’s Business Prin-
ciples concerning the environment, health and safety.
Distribution and logistics
Logistics and the distribution of components, spare parts and new 
products include everything from order handling and inventory 
management to stock picking, delivery and invoicing. It is not enough 
for a product to be of high quality and in line with speciﬁcations – 
it must also reach the recipient at the right time, in a secure way and 
with as little impact on the environment as possible. Alfa Laval has 
eight distribution centers, spread over Europe, Asia and North America. 
They process over 1.2 million order lines every year. Distribution and 
logistics is also responsible for Alfa Laval’s overall transport needs.
Consolidating transportation needs provides economies of scale, 
from both a cost and quality perspective. But costs are only one 
parameter that must be considered. The environment is another 
important component. Alfa Laval actively works to reduce the 
company’s freight-related CO2 emissions. In 2020, Alfa Laval con-
tinued to implement a new transportation management system 
according to plan, which will enable customers to better track 
their deliveries from Alfa Laval.
During 2020, Alfa Laval’s deliveries to most end markets increased 
considerably, particularly towards the end of the year. Despite its 
high volumes, Alfa Laval kept the share of air freight in line with 2019. 
At the end of the year, 68 percent had been shipped by road,
24 percent by sea and 6 percent by air.

Creating workplaces that are inclusive and free from discrimination, 
where employees feel secure and conﬁdent, is essential. It is also 
a given at Alfa Laval that employees have opportunities to develop, 
so as to meet the challenges of today and of the future. Alfa Laval’s 
employees can also be proud that their individual work contributes 
to a more sustainable future as the company works with continuous 
improvements throughout the value chain, from material production 
to production and ﬁnal delivery. This can be achieved through 
solutions that clean water, minimize waste, use natural resources 
efﬁciently or enhance energy use efﬁciency.
Health and safety
Since Alfa Laval’s employees are the foundation of the company’s 
success, ensuring their health and safety is only natural. Alfa Laval 
works continuously to create a healthy, safe and attractive work 
environment for its employees as well as its contractors, customers 
and visitors. The company strives to be a workplace that is free 
from accidents and work-related illnesses. 
Comprehensive work is therefore conducted in the line organization 
to ensure that the work environment is designed to minimize these 
risks. Safety issues have also been thoroughly integrated into the 
company’s production management system to make safety an 
even larger part of the daily operations. The overall work follows 
global and local procedures developed to ensure that safety is in-
corporated into the company’s day-to-day work. In addition to 
procedures and various other tools such risk analyses and incident 
investigations, training is provided for employees. The human fac-
tor is the most common cause of accidents, which means that in-
dividual behavior is a key factor in the effort to eliminate risks. 
In 2020, Alfa Laval continued the health and safety program im-
plemented in 2019, which focuses on leadership, training and 
communication and is intended to further strengthen the safety 
culture. During the year, all of Alfa Laval’s facilities received infor-
mation and training in step 1 of the program in order to best com-
municate the message across the organization and ensure every 
employee’s understanding and commitment. In addition, each unit 
is working to establish a skilled and educated organization that works 
actively and preventively to maintain a safe and healthy workplace.
Diversity that enriches
Alfa Laval is an international company with Scandinavian roots 
and a global organization that serves customers in approximately 
100 countries. Diverse nationalities among the company’s em-
ployees are therefore a natural part of its operations. 
But diversity is about so much more than this. It is about bringing 
together individuals who are different, who think differently and 
contribute different perspectives – or who are of different genders, 
ages, and have different experiences. This diversity is something 
the company strives for. It provides an important base for insights 
and ﬂexibility, and makes it possible to change together, based on 
the growth drivers that characterize the business.
With an explicit focus on diversity, all employees must feel they are 
treated on equal terms and that they have career paths open and 
available to them. This is one of the reasons that Alfa Laval works 
with open internal recruiting. All available positions are published 
on the company’s intranet and all employees are welcome to apply. 
Employee training and development – 70-20-10
70 percent is to come from the  
challenges faced during the course 
of the individual’s day-to-day work.
10 percent of what an individual learns 
is to come from formal training programs, 
either online or in a classroom setting.
20 percent is to come from various types 
of developmental relationships, meaning 
what the individual learns from managers, 
more experienced colleagues or mentors.
70
20
10
46
An attractive workplace
Alfa Laval’s employees are the company’s most important resource. Creating a secure, inspiring 
work environment is therefore a top priority, as is forming a culture that can both attract and 
retain talent and allow people to thrive. Succeeding with this task requires a great deal of 
sensitivity to everyone’s individual conditions and needs.

47
Average number of employees
Sales per employee
Employees by region
1
2
3
4
5
6
7
1 Sweden 
14%
2 Other EU 
29%
3 Other Europe 
8%
4 North America 
10%
5 Latin America 
3%
6 Asia 
35%
7 Other 
1%
SEK MILLION
0.0
0.5
1.0
1.5
2.0
2.5
3.0
20
19
18
17
16
2.06
2.14
2.42
2.68
2.41
Employees
By combining an open recruitment process with an explicit focus 
on performance, Alfa Laval aims to create an inclusive work envi-
ronment with equal opportunities for development. The hope is 
that this will encourage mobility and help the company retain em-
ployees with a high level of competence. An inclusive work envi-
ronment that stimulates the individual’s development is a key step 
in reaching Alfa Laval’s overall goals.
Development and training – the basis for success
Development in the sense of R&D is essential for Alfa Laval’s success, 
yesterday as well as today. But R&D is driven by people, and without 
their individual abilities, curiosity and insight, the company cannot 
advance. To keep moving forward, the individuals who are to de-
velop the business must therefore be given their own development 
opportunities. In this context, we are no longer talking only about 
R&D, but rather about employee development within all areas of 
Alfa Laval’s operations, at all levels. 
Change is a constant in society and in business. Customers want 
new and even more efﬁcient products, and there are always new 
rules and conditions. All of this imposes demands on Alfa Laval 
and its employees. To succeed, Alfa Laval needs to stay one step 
ahead, and this can only be achieved when people can lift their 
gaze and think differently, when they thrive in their tasks and have 
the tools they need to succeed in their work.
In spring 2020, Alfa Laval launched a new digital training portal, 
which simpliﬁes planning and follow-up of training modules for in-
dividual employees. The portal is also used to offer customers 
and partners customized training, which strengthens Alfa Laval’s 
offering and competitiveness.
Alfa Laval offers a broad range of training opportunities, some of which 
are managed locally, while others are part of a central program. Many 
of the company’s courses are internet-based (e-learning). These 
can be completed in groups in real time or individually at a pace 
and time that best suits the employee. The course offering is con-
tinuously developed to meet the needs of both the employees and 
the company. In 2020, employees were offered e-learning focused 
on the basics of digitization in our society and what it entails. The goal 
of our digital transformation is to foster a shared understanding 
and knowledge base that will serve as the starting point of our 
continued work. 
Number
10,000
12,000
14,000
16,000
18,000
20
19
18
17
16
17,160
17,305
16,521
16,785
17,387

48
Sustainability builds on continuous 
improvement and collaboration
Sustainability begins at home, by Alfa Laval conducting its own operations ethically, and according 
to prevailing social and environmental legislation. Alfa Laval’s four business principles help by providing 
clear guidelines for how they are to be continuously implemented, monitored and documented.
Alfa Laval’s business principles
Alfa Laval’s four business principles are aimed at continuously im-
proving Alfa Laval’s social, environmental and ethical work as well as 
maintaining its internal and external transparency. Alfa Laval’s business 
principles incorporate the “Protect, Respect and Remedy” framework 
introduced in the UN Guiding Principles on Business and Human 
Rights as well as the OECD Guidelines for Multinational Enterprises.
1. Social responsibility – respect for human rights is fundamental
One of our foremost priorities is to prevent the occurrence of 
workplace accidents. The company has a vision of a workplace 
that is free from accidents and work-related illnesses.
2. Business integrity – high ethical standards guide our conduct
The foundation for this principle is that the company is to comply 
with the laws in effect where we operate. The principle covers 
such areas as anti-bribery and anti-corruption (ABAC) efforts. 
3. The environment – we optimize the use of natural resources
It is important that our production and service operations continuously 
improve from an environmental perspective and also in minimizing 
risks. Alfa Laval sets clear goals regarding energy and water con-
sumption, climate impact, chemical use and waste management. 
An area that is equally as important as Alfa Laval’s internal work – 
and offers inﬁnitely greater potential – is the provision of products, 
services and solutions that can optimize our customers’ use of 
natural resources.
4. Transparency – our commitment to open dialogue builds trust
Alfa Laval’s ambition is to build trust through open dialogue with various 
stakeholders, for example, by addressing the opportunities and 
challenges within the area of sustainability. Read more about our 
stakeholder dialogue and materiality analysis in our separate Sus-
tainability Report.
Sustainability as a business opportunity
Alfa Laval’s products and solutions make it possible for customers to 
solve their environmental challenges and reach their own sustain-
ability goals. This achieved through solutions that clean and/or re-
use water, improve energy efﬁciency or ensure that industrial pro-
cesses are more resource efﬁcient. This way sustainability becomes 
a “win-win” for all parties: more efﬁcient and sustainable processes 
lead to increased proﬁtability for customers while creating a better 
environment for all of us.
Read more
Note that Alfa Laval publishes a separate Sustainability Report that complies with Swedish legal requirements, the Global Reporting Initiative 
and the UN Global Compact. The report is available in English: www.alfalaval.com/about-us/sustainability

Sustainability
Sustainability targets
Alfa Laval’s environmental and social targets aim to drive efﬁciency and behavioral change to achieve better results in the long term.
The below table contains a selection of the company’s sustainability targets. More details and information about the progress are presented 
in the separate sustainability report. 
Environmental  
targets 
Environmental targets 2020 
(base year 2015)
Progress  
Environmental targets 2023 
(base year 2020)
Ambition 2030
Carbon emissions 
Reduce carbon  
emissions by 15%
50% reduction scope 1 & 2  
emissions
Carbon neutral across the  
value chain
Energy efﬁciency 
Reduce energy consumption  
by 10%
Improve energy efficiency  
(MWh/Direct hours) by 5%
Continuously improve energy  
efficiency in production, service 
and products
Water consumption 
Reduce water consumption in  
water scarce areas by 10%
Reduce water consumption  
in water scarce areas by 5%
100% recirculation of water in all 
production and service sites in 
water scarce areas
Waste
Recycle 85% of waste
Maintain 85% recycling  
of waste
Zero waste to landfill
Chemicals 
No hazardous  
chemicals used
No hazardous  
chemicals used
No hazardous  
chemicals used
Social targets
Targets ahead of 2020 
Progress  
Social targets post 2020
Safety
Reduce Lost Time Injuries by 30% 
(base year 2017)
2023: 30% reduction of Lost Time Injury  
Frequency Rate (base year 2020)
Inclusion & Diversity
Increase the proportion of women in 
the company as a whole and also in 
leading positions year-on-year
By 2025:  
• 35% females in our total workforce  
• 25% female leaders  
• less than 70% homogeneity (gender & nationalities)  
in our senior management teams
Integrity targets
Targets ahead of 2020 
Progress  
Integrity targets post 2020
Anti-Bribery
Anti-Corruption
100% white collar  
employees trained
100% of all employees have gone through ABAC training  
every two years
Progress made but goal not fully achieved
Goal achieved 
49

Energy efﬁciency is one of the main contributors to reaching the 
Paris Agreement. Energy efﬁciency can deliver more than 40 percent 
of the greenhouse gas emissions savings over the next 20 years 
according to IEA, whereof 50 percent of the energy efﬁciency saving 
comes from the industry sector and 30 percent from buildings.
Efﬁciency can either be achieved by implementing innovative 
technology that reduces the energy consumption compared to 
existing/traditional solutions – or by adding technology to exist-
ing processes that capture and reuse waste heat for other pur-
poses. Alfa Laval has solutions for both energy savings and re-
use. Alfa Laval heat exchangers are 20 to 50 percent more 
efﬁcient than traditional (shell&tube) technology
There is still a signiﬁcant untapped potential in energy efﬁciency to 
save energy and reduce carbon emissions. Alfa Laval has the 
technologies to improve energy efﬁciency in various industrial 
processes. The technologies and solutions are proven, afford-
able and available.
Climate change has been an area of high focus and importance 
to Alfa Laval’s agenda for many years. Alfa Laval has worked to 
achieve its emission targets for 2020 which was to reduce carbon 
emissions by 15% and reduce energy use by 10% compared 
with base year 2015. 
The new target is to become carbon neutral by 2030 across the 
value chain. To achieve this ambition, Alfa Laval will set up targets on 
a three-year basis to align with the company’s business targets. 
The targets for 2023 are to reduce Scope 1 and Scope 2 emis-
sions by 50% with baseline 2020. Alfa Laval has also deepened 
its analysis of scope 3 emissions and as these represent more 
than 40% of the emissions, focus will shift towards these emis-
sions and how to reduce them going forward.
Achieving carbon neutrality across the value chain will require 
partnerships. One example is to ensure reduction of emissions 
from steel production, where Alfa Laval will have to partner with 
suppliers and other industries to speed up the transition to low 
emitting production processes.  
Alfa Laval therefore decided to join the 1.5 Business Playbook 
during 2020. Alfa Laval will continue to expand collaboration 
with other companies, customers and partners, in society and 
business to support the implementation of energy efﬁcient solu-
tions – and thereby contribute to reaching the 1.5C scenario 
set in the Paris Agreement.  
Alfa Laval and climate: 
Energy efﬁciency and 
collaboration are key
Scope 1: Covers direct emissions from owned or controlled sources
Scope 2: Indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by Alfa Laval 
Scope 3: Includes all other indirect emissions that occur in Alfa Laval’s value chain
50
25
MILLION  
TONS YEARLY
Every year, Alfa Laval heat exchangers installed in energy efﬁciency applications 
save 50GW which corresponds to the energy needed to heat up 10 million homes 
in Europe. The energy savings also reduce the carbon emissions by 25 million 
tons (yearly) which is slightly more than the emissions from the city of Paris.

51
Sustainability
The UN has developed 17 
Sustainable Development 
Goals that are to be achieved 
by 2030 – goals that world 
leaders have committed to 
achieving. Alfa Laval supports 
15 of the 17 goals.
We support the 
UN’s Sustainable  
Development Goals
Enabling change
Zero hunger  
Alfa Laval’s products and solutions con-
tribute to hygienic and safe food manufacturing. 
They can also improve shelf life and reduce waste 
in the manufacturing process.
Good health and well-being  
Alfa Laval delivers equipment that 
contributes to safe and resource-efﬁcient processes 
in the pharmaceutical industry.   
 Clean water and sanitation 
Alfa Laval has a wide offering for wastewater 
treatment. The portfolio also includes fresh water 
generators. Alfa Laval can thus contribute to 
improving access to clean water and fresh water. 
Affordable and clean energy  
Alfa Laval’s products are involved in re-
newable production processes. They can also store 
heat generated by the sun, enabling electricity 
generation even after the sun has set.  
 Industry, innovation and infrastructure  
Alfa Laval continuously invests in R&D. 
The pace has increased over the past few years, 
which is expected to result in a range of new 
products – among them new, even more energy- 
efﬁcient heat exchangers.
 Sustainable cities and communities  
Alfa Laval contributes to energy-efﬁcient 
heating and cooling. This includes systems for the 
reuse of waste heat which, through a district heating 
grid, can contribute to heating whole cities. 
 Responsible consumption  
and production
Alfa Laval’s goal is that every new product should 
have a smaller environmental impact – from a life 
cycle perspective – than the product it replaces. 
2
4
16
8
5
3
6
7
9
11
12
13
14
15
17
 Climate action 
Alfa Laval’s heat exchangers can 
improve energy efﬁciency in customers’ processes, 
reducing the need for fossil fuels and helping to 
lower CO2 emissions. 
 Life below water 
Alfa Laval offers its marine customers a range 
of products within energy and the environment. One 
example is PureBallast – a system which prevents 
organisms that travel along with ballast water from 
being released in areas where they lack natural 
enemies and hence could damage ecosystems.
Life on land  
Alfa Laval’s innovative technologies can 
contribute to optimizing resource efﬁciency. They 
can also reduce the impact on different ecosystems 
and cut greenhouse gas emissions. One concrete 
example of how Alfa Laval’s equipment can con-
tribute is a cooling solution to protect the world’s 
largest seed collection, providing a backup in 
case a natural catastrophe, climate change or 
war should deplete earth’s crop diversity. 
 Partnerships for the goals 
Alfa Laval has been a signatory of the UN 
Global Compact since 2011. This is a voluntary 
initiative, where members commit to implementing 
the UN’s sustainability principles.
Contributing to progress
Quality education
Alfa Laval is committed to ensure com-
petence development in our own business. We 
also support charities and volunteering projects 
related to child education across the globe.
Gender equality
Diversity and inclusion are key priorities 
for Alfa Laval and the aim is that the composition 
of employees reﬂects the geographic markets 
where we operate.
Decent work and economic growth
Alfa Laval’s Business Principles require 
decent working conditions. Working conditions 
and safety are a highly prioritized area both in our 
own operations and in the demands we set on 
our suppliers.
Peace, justice and strong institutions
Alfa Laval has a zero-tolerance approach 
to bribery and corruption. Our programme builds 
on the six steps outlined in the UK Bribery Act 
and is based on a “prevent, detect and correct” 
methodology.
Enabling change
Contributing
to progress

52
Price trend, January 1 – December 31, 2020
Total return, May 17, 2002 – December 31, 2020
Alfa Laval’s share during 2020
SEK
SEK
Number of  
shares (000s)
Alfa Laval’s share displayed a negative trend in 2020 A share price of 
SEK 226.3 (235.90) was quoted at the close of the ﬁnal trading day of 
the year, down SEK 9.6, corresponding to 4.1 percent. OMX Stockholm 
Industrials, the sector index for industrial shares in which Alfa Laval is 
listed, rose 12.9 percent in 2020. The Stockholm Stock Exchange as a 
whole rose 13.4 percent in 2020. The highest closing price for the share 
was SEK 257.2, quoted on February 12. The lowest closing price was 
SEK 149.6, quoted on March 23. Alfa Laval’s market capitalization at 
year-end was SEK 94.9 billion (98.9). The Alfa Laval share is listed on 
Nasdaq Stockholm and is included in the large cap segment in Stockholm 
and the Nordic region as well as OMXS30, which includes 30 companies 
with the most-traded shares in Stockholm. 
Strong long-term return
Since Alfa Laval was re-listed on the Stockholm Stock Exchange on May 
17, 2002, the company’s share, including reinvested dividends, has gen-
erated a return of 1,537 percent. Measured over the full listing period, this 
corresponds to an average annual effective return of 16 percent, compared 
with an annual effective return of 11 percent for the Stockholm Stock 
Exchange (SIX Return Index) during the same period.
Share turnover
Alfa Laval’s share is not traded exclusively on Nasdaq Stockholm, but 
also on CBOE Global Markets, the London Stock Exchange and Aquis, 
to name a few examples of major alternative marketplaces. In 2020, the 
Stockholm Stock Exchange accounted for 36.7 percent (31.7) of all trading 
in the share. Trading on CBOE Global Markets accounted for the largest 
share at 45.2 percent (48.3). The liquidity of the Alfa Laval share is favor-
able and declined slightly in 2020 to 784 (829.4) million shares, while 
trading in the share corresponded to a combined value of SEK 158.48 
billion (170.46), including all marketplaces. This corresponded to a some-
what lower share turnover rate in 2020 of 1.9 (2.0) times the total number 
of shares outstanding. In 2020, the average number of transactions 
completed in Alfa Laval shares increased to 9,892 (8,430) per trading day.
Dividend policy
The Board of Directors’ goal is to regularly propose a dividend that reﬂects 
the Group’s performance, ﬁnancial status, and current and expected 
capital requirements. Taking into account the Group’s cash-generating 
capacity, the goal is to pay a dividend of between 40 and 50 percent of 
net proﬁt over a business cycle. In order to further strengthen the company 
with respect to the negative short and medium-term ﬁnancial effects of 
COVID-19, Alfa Laval’s Board of Directors withdrew the previously proposed 
dividend for 2019 of SEK 5.50 per share. For 2020, the Board proposes 
that the Annual General Meeting approve a dividend of SEK 5.50 (0.00). 
The proposed dividend corresponds to 54.3 percent (0.0) of earnings 
per share, adjusted for surplus values. 
Share capital
The par value at year-end was SEK 2.66 (2.66) per share. All shares carry 
equal voting rights and equal right to the company’s assets. Alfa Laval 
has no options outstanding that could create a dilution effect for share-
holders. The total number of shares during the year was unchanged at 
419,456,315. 
Shareholders
At year-end 2020, Alfa Laval had 43,417 (41,147) shareholders, corre-
sponding to an increase of 2,270 (6,967) shareholders. The ten largest 
shareholders controlled 49.7 percent (51.7) of the shares, excluding 
nominee-registered shares. The single largest shareholder was Tetra 
Laval International SA, whose holding at December 31, 2020 was un-
changed at 29.1 percent. SPP Fonder was no longer among the ten 
largest shareholders at year-end, while Första AP fonden (the First Swedish 
National Pension Fund) became the eighth largest shareholder in 2020.
Alfa Laval
Alfa Laval incl. reinvested dividends
Total share turnover per month 
(incl. trading on alternative 
marketplaces and OTC trading)
OMX Stockholm Index
SIX Return
SX Industrials Index
Source: Bloomberg, Fidessa
Source: Bloomberg
02
03
04
05
06
07
08
09
11
12
15
16
17
18
19
20
14
13
10
0
50
100
150
200
250
300
350
400
0
30,000
60,000
90,000
120,000
150,000
dec
nov
oct
sep
aug
jul
jun
may
apr
mar
feb
jan
0
50
100
150
200
250
300

53
The share
2020
2019
2018
2017
2016
Share price at year-end, SEK
226,3
235.90
189.65
193.80
150.80
Highest paid, SEK
257,2
242.40
248.10
213.90
154.40
Lowest paid, SEK 
149,6
165.05
188.50
152.60
121.30
Shareholders’ equity, SEK
 69,31 
66.15
 56.26  
48.87
48.34
Earnings per share 
8,47
13.08
10.77
7.09
5.46
Dividend, SEK 
5,501)
0*
5.00
4.25
4.25
Free cash ﬂow, SEK 2)
 15,89 
10.00
8.56
8.92
9.97
Price change during the year, % 
-4,1
24.4
-2.1
29
-3
Dividend as % of EPS, %
64,9
42.0
46.4
 59.9  
 77.8 
Direct return, % 3) 
2,4
2.3
2.6
 2.2 
 2.8 
Share price/shareholders’ equity, multiple
 3,3 
3.6
3.4
 4.0  
 3.1 
P/E ratio 4)
27
18
 18  
 27 
 28 
No. of shareholders 
 43 334  41.147 
34.180
 32.967   35.840 
No. of 
shareholders
No. of 
shareholders, %
No. of 
shares
Holding, %
1 – 500
 33,936 
78.3%
 4,318,408 
1.0%
501 – 1,000
 4,276 
9.9%
 3,485,710 
0.8%
1,001 – 5,000
 3,923 
9.1%
 8,836,881 
2.1%
5,001 – 10,000
 526 
1.2%
 3,916,529 
0.9%
10,001 – 15,000
 154 
0.4%
 1,918,148 
0.5%
15,001 – 20.000
 84 
0.2%
 1,544,292 
0.4%
20,001 –
 435 
1.0%
 395,436,347 
94.3%
Total
 43,334 
 419,456,315 
No. of shares
Capital/voting 
rights,%
Change in  
holding in 2019, 
percentage points
Tetra Laval International SA
122,037,736
29.1
0.0
Alecta
24,312,464
5.8
0.2
AMF Insurance and Funds
15,377,737
3.7
-1.6
Swedbank Robur Funds
11,883,626
2.8
-1.6
CBNY Norges Bank
9,637,816
2.3 
-0.3
SEB Investment Management
7,521,072
1.8
-0.3
Handelsbanken Funds
7,032,268
1.7 
0.5
Första AP fonden
3,742,815
0.9
0.5
Folksam
3,648,365
0.9
0.0
Livförsäkringsbolaget Skandia
3,125,758
0.8
0.2
Total ten largest shareholders
208,319,657
49.8
-2.4
No. of shares
Holding, %
Financial companies
 91,204,734 
21.7%
Other financial companies
 168,917 
0.0%
Social insurance funds
 8,110,132 
1.9%
Government 
 259,453 
0.1%
Municipal sector
 28,682 
0.0%
Trade organizations
 4,023,903 
1.0%
Other Swedish legal entities
 6,044,800 
1.4%
Shareholders domiciled abroad (legal entities 
and individuals)
 287,312,514 
68.5%
Swedish individuals
 20,839,602 
5.0%
Uncategorized legal entities
 1,463,578 
0.3%
Ownership distribution by size at December 31, 2020
Data per share
Dividend and percentage  
of adjusted EPS6)
Geographic distribution of the free ﬂoat, % 
of capital and voting rights8)
Share turnover on various  
marketplaces 2020
Ownership categories at December 31, 2020
Ten largest shareholders at December 31, 2020 5)
Dividend
Percentage of adjusted EPS
Source: Euroclear
Source: Alfa Laval
Source: Fidessa
6) Adjusted for step up amortization net of taxes.
7) Board motion to the Annual General Meeting.
8) Excluding Tetra Laval International SA (Switzerland) 29.1%.
1 CBOE Global Markets 
45%
2 Nasdaq OMX 
37%
3 London Stock Exchange 
7%
4 Aquis 
3%
5 Other 
8%
1) Board motion to the Annual General Meeting.
2) Free cash ﬂow is the sum of cash ﬂow from operating and investing activities.
3) Measured as the proposed dividend in relation to closing price on the last trading day.
4) Closing price on the last trading day in relation to earnings per share.
* Cancelled dividend due to uncertain market conditions as a result of COVID-19 pandemic.
Source: Euroclear
Source: Euroclear
Source: Euroclear
5) The table is adjusted for nominee-registered shares. 
Source: OMX Nasdaq, Euroclear, Alfa Laval
Sweden
USA
UK
Other
0
25
50
75
100
20
19
18
17
16
%
0
1
2
3
4
5
6
20
19*
18
17
16
0
20
40
60
%
SEK
50.1
38.6
48.0
54.0
4.25
4.25
4.00
5.50 7)
1
2
3
4
5

54

55
Corporate Governance Report
Contents  
– Corporate Governance Report
Introduction by the Chairman of the Board 
56 
Corporate Governance Report 2020 
57
 
Share and ownership structure 
58
 
Annual General Meeting 
58
 
Annual General Meeting  
 
for the 2019 ﬁscal year 
58
 
Nominating Committee 
60
 
Board of Directors 
61
 
Committees 
63
 
The company’s auditors 
63
 
Remuneration to auditors 
63
Board of Directors and auditors 
64
President and Group management 
66
 
Areas of responsibility 
66
 
Remuneration to senior executives 
66
 
Operational control 
67
 
Group management meetings in 2020 
68
 Board of Directors’ report on internal control  
68
 
Control environment  
68
 
Risk assessment 
68
 
Control structures 
68
 
Information and communication 
69
 
Follow-up 
69
Auditor’s statement on the  
Corporate Governance Report 
70

56
Introduction by the Chairman 
of the Board
Alfa Laval 
Little did I know, entering my ﬁrst year as Chairman of the Alfa Laval 
Board, what a different and challenging year this would be. By early 
2020 employees all over the world were forced to contend with 
a new normal; lockdowns, travel bans and challenges of different 
kinds. Despite this Alfa Laval remained resilient and adjusted rapidly 
to the new situation while maintaining employee’s safety and 
customers business continuity in focus. During the year, I have been 
impressed to see the strong drive on customer focus and the 
competence and technology skills that the organization possesses. 
Alfa Laval’s innovative technologies are dedicated to purifying, 
reﬁning, and reusing materials, promoting more responsible use 
of natural resources. They contribute to improved energy efﬁciency 
and heat recovery, better water treatment, and reduced emissions. 
Alfa Laval is thereby, not only accelerating success for its customers, 
but also for people and the planet, making the world a better place.
The Board of Directors is responsible for the organization and 
management of the Group and for creating the conditions for 
long-term proﬁtable growth with the best interest of the company 
and owners in mind. This is done by regularly assessing the Group’s 
ﬁnancial situation and the companies ﬁnancial, legal, social, and 
environmental risks, ensuring that the organization is designed 
for satisfactory control.
We are committed to building a better future for our customers and 
the Board is fully supportive of the company’s relentless focus on 
developing and improving its product portfolio with the aim of staying 
ahead and securing long-term value creation in the years ahead.
The year in brief
2020 has been a year like no other. It has been a year of unprec-
edented challenges, but also a year that offered opportunities.
In 2020, Alfa Laval continued to transform its sales of service and 
spare parts as well as its customer service in line with its strategy 
to make them more digitized and data based. Initiatives like digi-
talization, including connected equipment and remote diagnostics, 
were accelerated to better service and support many of our cus-
tomers during a difﬁcult year. 
The ultimate goal of transforming the service business is for Alfa 
Laval to be able to fully leverage its installed base, improve and 
expand the customer base and simultaneously improve the cus-
tomer experience, thereby supporting the Alfa Laval brand. 
The Board continued to focus on key initiatives implemented within 
the framework of the company’s strategic priorities to reach its 
growth, proﬁtability, and capital utilization goals. Our efforts to 
develop products and systems for a changing world, with new 
demands and needs concerning energy supply, energy utilization 
and food production as well as changing regulations, continued.
Product launches across the various technological platforms 
continued at a rapid pace while the company worked on adjusting 
its existing manufacturing capacity to meet changing demands. 
This was done while accelerating connectivity, rolling out of 
e-commerce solutions, and handling the rapid changes without 
disruptions in the supplier chain or deliveries to customers.
All in all, despite a challenging 2020, Alfa Laval performed well. 
While volumes were lower, proﬁtability remained at a high level and 
a strong cash ﬂow put us in a good position going forward.
I would like to take this opportunity to thank my fellow Board members 
for good cooperation, constructive contributions and engaged 
work. I would also like to thank the Alfa Laval management and 
all its employees for exceptional work during a challenging year.
Lund, February 2021 
Dennis Jönsson
Chairman of the Board

57
Corporate Governance Report
Corporate Governance  
Report 2020
Alfa Laval offers efﬁcient and environmentally responsible products and solutions in 
the areas of heat transfer, separation and ﬂuid handling. The business is driven by clear 
goals for growth, proﬁtability and returns, at the same time as there are distinct require-
ments on Alfa Laval to act in a manner that is sustainable from a long-term perspective 
for its shareholders, employees, customers, suppliers and other stakeholders.
The framework for the company’s corporate governance is based on various laws and regulations, such as the Swedish 
Companies Act, the Swedish Annual Accounts Act, the rules of the stock exchange and the Swedish Corporate 
Governance Code (the “Code”). These are supplemented by the company’s business principles regarding the envi-
ronment, human rights, ethics and transparency. The company’s control is also subject to internal regulations, including 
governing documents with guidelines and instructions as well as procedures for control and risk management. The 
work of the Board and the President is governed by formal work plans. This Corporate Governance Report aims to 
describe the guidelines that are in place, the division of responsibility within the company and the interaction between 
the Annual General Meeting, the Board of Directors and the President. The Report was reviewed by the company’s auditors.
57
The registered name of the company is Alfa Laval AB (publ) and the registered ofﬁce of the 
Board of Directors shall be in Lund Municipality in Sweden. The company’s share capital 
shall amount to not less than SEK 745,000,000 and not more than SEK 2,980,000,000. 
The number of shares shall be not less than 298,000,000 and not more than 1,192,000,000. 
The company is listed on Nasdaq Stockholm AB. The ﬁscal year is the calendar year. The 
objective of the company’s operations is to, directly or through subsidiaries and joint venture 
companies in and outside Sweden, develop, manufacture and sell equipment and installa-
tions, primarily in the areas of separation, heat transfer and ﬂuid handling, and to administer 
ﬁxed and movable property, and other related operations. The Articles of Association do 
not include any limitations regarding the number of votes a shareholder can cast at a 
General Meeting. Nor do they include any speciﬁc rules regarding the appointment and 
dismissal of Board members or changes in the Articles of Association.
Alfa Laval – the company
Alfa Laval’s currently prevailing Articles 
of Association were adopted at the 
Annual General Meeting on April 23, 
2020 and are available in their entirety  
on www.alfalaval.com

58
Share and ownership structure
At December 31, 2020, Alfa Laval had 
419,456,315 shares outstanding, allocated 
among 43,417 shareholders according to Eu-
roclear Sweden’s share register. Alfa Laval has 
only one class of shares and each share cor-
responds to one vote. Tetra Laval International 
SA was the largest owner, with 29.1 percent 
of the shares in Alfa Laval at year-end, and the 
only owner with a stake larger than 10 percent. 
The second largest owner was Alecta with 5.8 
percent, followed by AMF with a holding of 
3.7 percent. Legal entities accounted for 
slightly more than 95 percent of the holdings, 
while individuals accounted for the remainder. 
From a geographic perspective, the following 
ﬁve countries represented a total of 93.0 per-
cent of the shareholdings: Sweden, Switzer-
land, the US, the UK and Luxembourg. For 
more information about Alfa Laval’s share, 
share performance and ownership structure, 
refer to the Share section on pages 52–53.
Annual General Meeting
The Annual General Meeting is the company’s 
highest decision-making body in which all share-
holders are entitled to participate and each share 
entitles its holder to one vote. The majority of 
motions addressed at the Annual General Meeting 
are decided by a simple majority. However, 
certain points sometimes require a qualiﬁed 
majority, for example, amendments to the 
company’s Articles of Association or resolutions 
to buy back shares. The Annual General 
Meeting is to be held annually within six months 
of the close of the ﬁscal year in either Lund or 
Stockholm. Normally, the Annual General 
Meeting takes place in late April in Lund. The 
date and location are announced not later than 
in conjunction with the publication of the interim 
report for the third quarter. To be entitled to 
participate and vote in the Annual General 
Meeting, shareholders must be registered in 
the share register maintained by Euroclear 
Sweden AB. Any shareholder who is unable 
to attend in person may participate through a 
proxy with a power of attorney. Shareholders 
with nominee-registered shares must have the 
shares temporarily registered under their own 
name. The Annual General Meeting is held in 
Swedish and all documentation is available in 
Swedish and English. Alfa Laval endeavors to 
ensure that all Board members participate as 
well as, in so far as it is possible, all members 
of Group management. The company’s auditors 
are always present.
Dividend and percentage  
of adjusted EPS**
Total number of shareholders
Dividend
Percentage of adjusted EPS
* Board motion to the Annual General Meeting.
** Adjusted for step up amortization net of taxes.
No. of shares
Capital/voting 
rights,%
Change in holding in 2020,  
percentage points
Tetra Laval International SA
122,037,736
29.1
0.0
Alecta
24,312,464
5.8
0.2
AMF Insurance and Funds
15,377,737
3.7
-1.6
Swedbank Robur Funds
11,883,626
2.8
-1.6
CBNY Norges Bank
9,637,816
2.3 
-0.3
SEB Investment Management
7,521,072
1.8
-0.3
Handelsbanken Funds
7,032,268
1.7 
0.5
Första AP fonden
3,742,815
0.9
0.5
Folksam
3,648,365
0.9
0.0
Livförsäkringsbolaget Skandia
3,125,758
0.8
0.2
Total ten largest shareholders
208,319,657
49.8
-2.4
No. of shares
Holding, %
Financial companies
91,204,734
21.7%
Other financial companies
168,917
0.0%
Social insurance funds
8,110,132
1.9%
Government 
259,453
0.1%
Municipal sector
28,682
0.0%
Trade organizations
4,023,903
1.0%
Other Swedish legal entities
6,044,800
1.4%
Shareholders domiciled abroad (legal entities and individuals)
287,312,514
68.5%
Swedish individuals
20,839,602
5.0%
Uncategorized legal entities
1,463,578
0.3%
Ownership categories at December 31, 2020
Ten largest shareholders at December 31, 2020*
Source: Euroclear
Source: Euroclear
*  The table is adjusted for nominee-registered shares. 
0
1
2
3
4
5
6
20
19
18
17
16
0
20
40
60
%
SEK
50.1
38.6
48.0
54.0
4.25
4.25
4.25
5.50*
0
10,000
20,000
30,000
40,000
50,000
20
19
18
17
16
35,840
32,967
34,180
41,147
43,417

59
Corporate Governance Report
Corporate governance
President and CEO
Divisions
Group Management
Staff functions
Reports
HR 
Finance
Communications
Corporate Business Development
CSR
Legal
IT
Goals
Strategies
Policy documents
Business Principles
Audit
Internal audit
Audit Committee
Remuneration Committee
Annual General Meeting
Board of Directors
Nominating Committee

60
The Annual General Meeting of Alfa Laval AB (publ) will be held on 
Tuesday, April 27, 2021, at 4:00 p.m. 
In accordance with the company’s Articles of Association, notice of the 
Annual General Meeting will be inserted as an announcement in the 
Swedish Official Gazette and on the company’s website not more than 
six and not less than four weeks prior to the Meeting. An announcement 
that notification has been issued will be placed in Dagens Nyheter. As 
a service to existing shareholders, information about the Annual General 
Meeting can also be sent to them by mail. 
Annual General Meeting for the 2020 ﬁscal year
Shareholders wishing to submit proposals to the 
Nominating Committee prior to the Annual General 
Meeting were able to contact Alfa Laval’s Board Chairman 
Dennis Jönsson, or one of the owner representatives. 
Contact could also take place directly via e-mail at  
valberedningen@alfalaval.com. The ﬁnal day for submitting 
matters to be addressed by the Annual General Meeting 
was March 9, 2021. 
Proposals to the Nominating Committee 
– A resolution was passed that no dividend be 
paid for 2019 and that the company’s proﬁts 
be carried forward.
– A resolution was passed that the number of 
Board members appointed by the Meeting is 
to amount to eight, with no deputies. 
– A resolution was passed that fees paid to 
non-executive Board members elected by the 
Meeting remain unchanged at SEK 5,845,000 
In addition, fees for work on the Board’s com-
mittees are to remain unchanged.
– A resolution was passed to re-elect Board 
members Finn Rausing, Jörn Rausing, Ulf 
Wiinberg, Henrik Lange, Heléne Mellquist and 
Maria Moræus Hanssen. Dennis Jönsson and 
Ray Mauritsson were elected as new Board 
members. Anders Narvinger and Anna Ohlsson 
Leijon declined re-election.
It was resolved that Dennis Jönsson be elected 
as the new Chairman of the Board.
– A resolution was passed in favor of the 
Nominating Committee’s proposal, resulting in 
the re-election of Authorized Public Accountants 
Staffan Landén and Karoline Tedevall as the 
company’s auditors. Authorized Public Accoun-
tants Henrik Jonzén and Andreas Mast were 
also elected as the company’s deputy auditors.
– A resolution was passed in favor of the 
Annual General Meeting for the 2019 fiscal year
The Annual General Meeting for the 2019 ﬁscal 
year was held at Scandic Star in Lund on April 
23, 2020. As a result of the restrictions taken 
to reduce the risk of spreading COVID-19, a 
very limited number of people participated in 
the Meeting and Anders Narvinger, Chairman 
of the Board, and Finn Rausing, Chairman of 
the Nominating Committee, participated via 
phone. Other Board members, proposed new 
members and other members of the Nominating 
Committee also participated via phone. A total 
of 20 people were present at the Annual 
General Meeting, including shareholders, proxies, 
assistants, guests and ofﬁcials. In conjunction 
with the Annual General Meeting, Alfa Laval’s 
owners were given the option of early voting 
by mail. The total number of votes represented 
at the Meeting corresponded to 31 percent of 
the total number of votes in the company. 
Attorney Erik Sjöman was elected as the Meeting 
Chairman. The minutes from the Annual General 
Meeting, and all other information related to 
the Meeting, are available at www.alfalaval.
com/investors/corporate-governance/. 
The resolutions passed at the Meeting included 
the following: 
– A resolution was passed to adopt the income 
statement and balance sheet as well as the 
consolidated income statement and consoli-
dated balance sheet and to discharge the 
Board of Directors and President from liability. 
Board’s proposed guidelines for remuneration 
to senior executives.
– A resolution was passed in favor of the 
Board’s proposed changes to Alfa Laval AB’s 
Articles of Association.
Nominating Committee
Work of the Nominating Committee
The Nominating Committee, which comprises 
representatives of the largest shareholders, is 
responsible for preparing and submitting motions 
regarding candidates for Board members and, if 
applicable, auditors. The supporting documen-
tation utilized for the Committee’s work includes 
the annual evaluation of the work of the Board, 
which is initiated by the Chairman of the Board. 
Other key factors to be considered, against the 
background of the company’s strategy, include 
the type of competence required. The Nomi-
nating Committee can call upon the assistance 
of external resources in its search for suitable 
candidates and can also conduct interviews with 
individual Board members. The Nominating 
Committee is also responsible for submitting 
motions in respect of remuneration to members 
of the Board and its committees.
Composition for the 2021 Annual  
General Meeting
The composition of the Nominating Committee 
is determined in accordance with the process 
approved by the Annual General Meeting. The 
Chairman of the Board contacts representatives 
of the institutions which, as of the end of August, 
Name
Representing
Shareholding in Alfa Laval, %*
Jörn Rausing
Tetra Laval International SA
29.2
Ramsay Brufer 
Alecta Pensionsförsäkring
5.6
Anders Oscarsson
AMF Insurance and Funds
4.4
Jan Andersson
Swedbank Robur Funds
3.3
Per Trygg
SEB Funds
1.8
*As of August 31, 2020.
Composition of the Nominating Committee ahead of the Annual General Meeting for the 
2020 ﬁscal year

61
Corporate Governance Report
are among the largest shareholders and re-
quests that they each appoint one member. 
The composition is then announced in a press 
release, in the third-quarter interim report and 
on Alfa Laval’s website. Ahead of the 2021 
Annual General Meeting, the composition of 
the Nominating Committee was announced 
on September 28, 2020. It was also included 
in Alfa Laval’s third-quarter interim report, 
which was published on October 22, 2020. 
The Nominating Committee for the Annual 
General Meeting for the 2020 ﬁscal year com-
prised the following individuals: Jörn Rausing 
(Tetra Laval International SA), Ramsay Brufer 
(Alecta Pensionsförsäkring), Anders Oscarsson 
(AMF Insurance and Funds), Jan Andersson 
(Swedbank Robur Funds) and Per Trygg (SEB 
Funds). The holdings of the Nominating Com-
mittee represented 44.2 percent of the num-
ber of shares outstanding at August 31, 2020.
Chairman of the Board Dennis Jönsson was 
elected as a member, Alfa Laval’s General 
Counsel and Board secretary Emma Adlerton 
was elected as secretary and Jörn Rausing was 
elected as Chairman of the Nominating Com-
mittee. Due to Jörn Rausing’s position as a Board 
member, his role as Chairman is a deviation 
from the Code. The reason for this deviation is 
that the Nominating Committee deemed Jörn 
Rausing to be particularly well suited to lead 
the work of the Committee and obtain the best 
possible results for the company’s owners.
Proposals to the Nominating Committee
Shareholders wishing to submit proposals to the 
Nominating Committee prior to the Annual General 
Meeting were able to contact Alfa Laval’s Board 
Chairman Dennis Jönsson, or one of the owner 
representatives. Contact could also take place 
directly via e-mail at valberedningen @alfalaval.com. 
The ﬁnal day for submitting matters to be ad-
dressed by the Annual General Meeting was 
March 9, 2021. 
Work of the Nominating Committee ahead  
of the 2020 Annual General Meeting
The Nominating Committee held four minuted 
meetings ahead of the Annual General Meeting 
that took place in April 2020 for the 2019 ﬁscal 
year. The Nominating Committee also conducted 
discussions by phone and e-mail. The meetings 
covered an evaluation of the Board’s composition, 
an assessment of the potential future compe-
tence requirements of the Board and an evalu-
ation of candidates for the Board’s coming 
term. As a basis for its work, the Nominating 
Committee used an internal evaluation of the 
work of the Board that was conducted by the 
Chairman of the Board.
The reasoned statement of the Nominating 
Committee ahead of the 2020 Annual General 
Meeting stated that the Nominating Committee 
had applied Rule 4.1 of the Swedish Corporate 
Governance Code (“the Code”) as its diversity 
policy when preparing its motion to the Board.  
The aim of the policy is to ensure that the com-
position of the Board of Directors is appropriate 
to the company’s operations, phase of develop-
ment and other relevant circumstances, and 
that it is characterized by diversity and breadth 
of qualiﬁcations, experience and background, and 
that an even gender balance is sought after. 
Ahead of the 2020 Annual General Meeting, 
the Nominating Committee was tasked with 
preparing proposals for a new Chairman and 
another new member of Alfa Laval’s Board of 
Directors. In its work, the Nominating Committee 
focused particularly on identifying and proposing 
Board members who together would represent 
a broad range of industrial experience and ex-
perience in development areas relevant to Alfa 
Laval. For the role of Chairman, the Nominating 
Committee’s goal was to ﬁnd a candidate with 
comprehensive experience in leading international 
companies similar to Alfa Laval. The Nominating 
Committee’s efforts resulted in the Annual 
General Meeting appointing Dennis Jönsson 
as Charmain and Board member and electing 
Ray Mauritsson as a new Board member. 
Over the last few years, the Nominating Committee 
has aimed for an even distribution of gender on 
the Board, in accordance with the benchmark 
level stipulated in the Swedish Corporate Gover-
nance Board. The current Board consists of two 
women and six men, which represents a share 
of 25 percent women. This is less than ideal and 
the issue will continue to receive careful scrutiny.
At the 2020 Annual General Meeting, Anders 
Narvinger was thanked for his time as Chairman 
of the Board.
Board of Directors
Work and responsibilities
The Board administers the company on behalf 
of the shareholders and thus bears the ultimate 
responsibility for the organization and admin-
istration of the company. The work and respon-
sibilities of the Board are governed by the 
Swedish Companies Act, the Swedish Board 
Representation (Private Sector Employees) Act, 
Alfa Laval’s Articles of Association, the Board’s 
Remuneration of Board members and attendance at Board meetings
  Chairman
*The remuneration recognised pertains to the period between two AGMs
Name
Present
Remuneration*
Appointed by the AGM
Anders Narvinger **
    5
–
Dennis Jönsson***
  10
1,750,000
Henrik Lange
15
585,000
Ulf Wiinberg
15
585,000
Finn Rausing
15
585,000
Jörn Rausing 
14
585,000
Anna Ohlsson-Leijon**
4
–
Heléne Mellquist
12
585,000
Ray Mauritsson***
10
585,000
Maria Moreaus Hanssen
15
585,000
Employee representatives
Bror García Lantz
15
–
Susanne Jonsson
15
–
Henrik Nielsen
15
–
Total
15
5,845,000
**Declined re-election at the AGM   ***Appointed after the AGM

62
own formal work plan, Nasdaq’s Rule Book for 
Issuers and the Code. The Board establishes 
and evaluates Alfa Laval’s overall long-term 
objectives and strategies. This includes estab-
lishing business and ﬁnancial plans, reviewing 
and approving ﬁnancial statements, adopting 
guidelines, making decisions on issues relating 
to acquisitions and divestments, and deciding 
on major investments and signiﬁcant changes 
to Alfa Laval’s organization and operations. The 
Board is also responsible for Alfa Laval’s business 
principles, which determine how the company 
and its employees are to conduct themselves in 
society, taking into consideration the environment, 
ethics, social responsibility and transparency. 
The Board is responsible for the Corporate 
Governance Report. The Board is also respon-
sible for ensuring that processes are in place 
for monitoring compliance with relevant laws 
and rules. The Board appoints, evaluates and 
dismisses the company’s President, establishes 
the instructions for the President with respect to 
the Group’s daily operations and approves the 
President’s commitments outside the company. 
Through the Audit Committee, the Board procures 
auditing services, maintains ongoing contact with 
the company’s auditors and works to ensure that 
a sound internal control function and formalized 
procedures are in place to enable monitoring and 
assessment of the company’s ﬁnancial situation. 
Through the Remuneration Committee, the 
Board also determines salaries and remunera-
tion for the President and senior executives.
Composition
The Board of Directors is to comprise a minimum 
of four and maximum of ten members, with a 
maximum of four deputy members. 
At the 2020 Annual General Meeting, eight 
members were elected, and no deputies. The 
members are elected annually for the period until 
the conclusion of the next Annual General 
Meeting and are to dedicate the requisite time 
and diligence to the assignment as well as have 
the necessary knowledge to best look after the 
interests of the company and its owners. Ad-
ditionally, the trade-union organizations appoint 
three employee representatives and three deputy 
employee representatives. Salaried employees 
in the company are invited to Board meetings 
as presenters and experts. The company’s Chief 
Financial Ofﬁcer participates in all meetings, as 
does its General Counsel, who serves as Board 
secretary. For more information about the goals 
regarding Board composition, refer to “Work of 
the Nominating Committee ahead of the 2020 
Annual General Meeting” on page 91.
Independence of Board members
All members of the Alfa Laval Board elected by 
the Annual General Meeting are considered 
independent of the company and its manage-
ment. All members are also considered inde-
pendent of the company’s major shareholders, 
except Finn Rausing, Jörn Rausing and Dennis 
Jönsson, who cannot be considered indepen-
dent due to their relationship with Tetra Laval 
International SA, which owned 29.1 percent 
of the shares in the company as of December 
31, 2020.
The Board’s formal work plan
The work of the Board is governed by a formal 
work plan that is determined annually at the 
statutory meeting. This formal work plan de-
scribes the Board’s work assignments and the 
division of responsibility between the Board, the 
committees and the President. It also deﬁnes 
the role of the Chairman of the Board and in-
cludes separate instructions for the company’s 
President regarding the ﬁnancial reporting to 
be submitted to the Board to enable ongoing 
assessment of the ﬁnancial position.
Work of the Board in 2020
The Board held 15 meetings in 2020, including 
eight ordinary and seven extraordinary meetings. 
11 meetings were held by phone, while the other 
meetings were held in Lund and Stockholm in 
Sweden. The company’s President prepares an 
agenda for each meeting in consultation with 
the Chairman of the Board. Normal agenda items 
include health and safety, earnings results, order 
trends, investments, sustainability and acqui-
sitions. In addition to these, much time was 
spent discussing the COVID-19 situation, the 
tender offer for Neles and adapting the orga-
nization to a changing market. The Board also 
focused on reviewing personnel issues.
Board training
All new Board members undergo an extensive 
introduction program. In addition, a combined 
training course and ﬁeld trip takes place each 
year. However, due to COVID-19, the trip was 
canceled.
Evaluation of the Board’s work
The Chairman of the Board ensures that an 
annual evaluation is conducted of the work of 
the Board. The evaluation focuses on work 
methods and work climate as well as its access 
to and the need for particular Board competence 
in order to lay the foundation for a well-functioning 
and efﬁcient Board. External resources are brought 
in at regular intervals to evaluate the work of the 
Board. Regardless of whether it is conducted 
internally or externally, the evaluation forms a 
foundation for the Nominating Committee’s work 
related to the nomination of Board members and 
proposed remuneration levels. In 2020, the 
evaluation was conducted by the Chairman of 
Board through an external evaluation and dis-
cussions with the Board members. The evaluation 
followed a clear structure based on standard 
models. The results were reported to the Board 
and communicated to the Nominating Committee.
Responsibilities of the Chairman of the Board
The Chairman of the Board directs the work of 
the Board in a manner that ensures it complies 
with prevailing laws and regulations, the Code 
and the Board’s formal work plan. The Chairman 
must ensure that the work is well organized and 
conducted efﬁciently, and that the Board fulﬁlls 
its tasks. In dialogue with the company’s President, 
the Chairman monitors operational developments 
and is responsible for ensuring that the other 
members continuously receive all information 
necessary for the work of the Board to be per-
formed in the most effective manner. Together 
with the company’s President, the Chairman also 
approves the proposed agenda for Board meet-
ings. The Chairman is responsible for ensuring 
that new Board members receive an introduction 
to the company and any other training agreed on 
by the Chairman and the individual member within 
six months from the member’s election. In addi-
tion to being responsible for evaluating the Board’s 
work, the Chairman also participates in evaluation 
and development matters with respect to the 
Group’s senior executives. The Chairman ensures 
that the Board’s decisions are executed and 
represents the company in ownership issues.
Audit Committee: fees and attendance
  Chairman
Name
Present
Remuneration
Anna Ohlsson-Leijon** 
  2
–
Henrik Lange
  6
200,000
Heléne Mellquist
6
125,000
Dennis Jönsson* 
 4
125,000
Total
6
450,000
*Appointed after the AGM  **Declined re-election at the AGM

63
Corporate Governance Report
Remuneration of the Board
Remuneration to the Board is determined by the 
Annual General Meeting based on the motions 
submitted by the Nominating Committee. The 
Chairman and members of the Audit Committee 
and the Remuneration Committee receive sup-
plementary remuneration. No Board member is 
entitled to pension payments from the company.
Committees
Alfa Laval’s Articles of Association stipulate that 
there must be a Remuneration Committee and 
an Audit Committee that report to the Board. 
Committee members are appointed from among 
the Board members for a period of one year.
Audit Committee
Areas of responsibility
The Audit Committee ensures compliance with 
the principles for ﬁnancial reporting and internal 
control. The Committee formulates guidelines for 
the company’s ﬁnancial reporting and follow-up, 
and has the right to determine the focus of the 
internal audit. The Committee examines the 
procedures for reporting and ﬁnancial controls 
as well as the work, qualiﬁcations and inde-
pendence of the external auditors. The Com-
mittee also follows up the effectiveness of the 
internal control systems and reviews the com-
pany’s ﬁnancial reports. For further information 
regarding the responsibilities of the Audit 
Committee, refer to “The Board of Directors’ 
report on internal control” on page 68.
Members and meetings in 2020
Members are appointed annually at the 
Board’s statutory meeting. In 2020, the Com-
mittee comprised Henrik Lange (Chairman), 
Dennis Jönsson and Heléne Mellquist with the 
Group Controller serving as secretary. Six digital 
meetings were held during the year. The com-
pany’s Chief Financial Ofﬁcer, the Head of the 
Internal Audit Function and the company’s 
auditors also attend the Committee’s meetings. 
The meetings addressed the following: 
–  ﬁnancial reports and debrieﬁng from the  
external auditors, 
–  Group provisions and allocations,
 
–  planning external and internal audits,
 
–  internal control processes, 
–  closing down the company’s reinsurance 
company,
–  the ﬁnancial policy and capital structure 
strategy as well as the company’s enterprise 
risk management plan, and 
–  reviewing the outcome of the self-assessment 
of managers in the Group regarding internal 
control points. 
Remuneration Committee
Areas of responsibility
The Remuneration Committee is involved in re-
cruitment, appointments, and matters pertaining 
to other conditions of employment relating to the 
President and Group management. The Com-
mittee is responsible for preparing the Executive 
Remuneration Policy to senior executives to be 
resolved on by the Annual General Meeting and 
for submitting motions to the Board of Directors 
regarding the report on remuneration paid and 
outstanding, which is to be prepared by the Board 
each ﬁscal year and be presented to the Annual 
General Meeting for approval. In addition, the 
Committee submits proposals to the Board 
on matters regarding salary and employment 
terms for the President and for senior execu-
tives who report directly to the President.
Members and meetings in 2020
The Remuneration Committee is appointed 
annually at the Board’s statutory meeting. The 
Committee held two meetings in 2020. At the 
ﬁrst meeting in February 2020, the Committee 
comprised Anders Narvinger (Chairman), Jörn 
Rausing and Ulf Wiinberg. At the second meeting 
in December 2020, the Committee comprised 
Dennis Jönsson (Chairman), Jörn Rausing and 
Ulf Wiinberg. Minutes are taken at all meetings 
and the contents are distributed to the Board 
members, except in certain cases when the 
minutes are noted directly in the corresponding 
Board minutes. During the year, the Remuner-
ation Committee proposed, among other things:
–  The executive remuneration policy according 
to Chapter 7 and 8 of the Swedish Companies 
Act (Sw. Aktiebolagslagen)
–  The goals for the short-term incentive (STI) 
and long-term incentive (LTI) plans.
–  Deﬁned beneﬁts pension plan obligations 
was also discussed. 
The company’s auditors
The auditors comprise a supervisory body ap-
pointed by the Annual General Meeting. The 
assignment includes the following: auditing the 
accounting and ﬁnancial statements of individual 
companies, evaluating the accounting policies 
applied, assessing the administration of company 
management, reviewing the interim report for the 
third quarter and evaluating the overall presentation 
in the Annual Report. The results of the audit 
– the Audit Report – are communicated to share-
holders in the Annual Report and at the Annual 
General Meeting. In addition, the auditors present 
a statement regarding the discharge from liability 
of the Board of Directors, a statement regarding 
the adoption of the income statement and balance 
sheet by the Annual General Meeting and a 
statement regarding the Corporate Governance 
Report. The Group must have a minimum of one 
and maximum of two auditors, with not more than 
two deputy auditors. An authorized public accoun-
tant or registered auditing ﬁrm is to be appointed 
as the company’s auditor and, where applicable, 
as deputy auditor. At the Annual General Meeting 
on April 23, 2020, Authorized Public Accountants 
Staffan Landén and Karoline Tedevall were elected 
as the company’s auditors. Henrik Jonzén and 
Andreas Mast were elected as deputy auditors. 
According to Alfa Laval’s assessment, none of 
these auditors has any relationship to Alfa Laval, 
or any company related to Alfa Laval, that could 
affect their independent status. In 2020, the entire 
Board received a report from the company’s 
external auditors on one occasion. On this 
occasion, the Board met with the auditors 
without the CEO or anyone from Group man-
agement being present. The Audit Committee 
received separate reports on six occasions. 
Remuneration to auditors
Refer to Note 7 on page 123.
Remuneration Committee: fees and attendance
  Chairman
*Declined re-election at the AGM  **Appointed after the AGM  
Name
Present
Remuneration
Anders Narvinger*
  1
–
Dennis Jönsson**
  1
50,000
Jörn Rausing
2
50,000
Ulf Wiinberg
 2
50,000
Total
2
150,000

64
Dennis Jönsson
Chairman since 2020.
Born: 1956.
Formerly President and CEO of 
Tetra Pak.
Education: BSc. Econ from 
Stockholm University.
Independent of the company. 
Number of shares in Alfa Laval:  
210,000* (–**)
Board of Directors and auditors
Finn Rausing
Board member since 2000.
Born: 1955
Education: B.L., MBA from 
INSEAD.
Board member: Tetra Laval 
Group, DeLaval Holding AB, EQT 
AB, Swede Ship Marine AB and 
Excillum AB.
Independent of the company.
Number of shares in Alfa Laval:
–
Ulf Wiinberg
Board member since 2013.
Born: 1958
President of X-Vax Inc. Formerly 
CEO of H. Lundbeck A/S, Director 
of Wyeth Pharmaceuticals, EMEA/
Canada & BioPharma, and a 
number of other senior positions 
in Wyeth.
Chairman of the Board: Hansa 
Biopharma AB and Sigrid 
Therapeutics.
Board member: UCB Pharma and 
Agenus Inc.
Independent of the company and 
major shareholders.
Number of shares in Alfa Laval:  
20,000* (20,000**)
Jörn Rausing
Board member since 2000.
Born: 1960
Head of Mergers and Acquisitions 
(M&A) in the Tetra Laval Group.
Education: BSc. Econ.
Board member: Tetra Laval Group, 
Ocado PLC and DeLaval Holding AB.
Independent of the company.
Number of shares in Alfa Laval:
–
Henrik Lange
Board member since 2018.
Born: 1961
Previously President and CEO of 
Gunnebo AB; held several senior 
positions within the SKF Group, 
including Industry Division Manager 
and CFO, and served as CEO of 
Johnson Pump AB.
Education: BSc. Econ. from the 
Gothenburg School of Business, 
Economics and Law
Board member: Velux A/S, IPCO AB, 
Thomas Concrete AB, Traction AB 
and The German-Swedish Chamber 
of Commerce.
Independent of the company and 
major shareholders.
Number of shares in Alfa Laval: 
4,000* (4,000**)
Appointed by the Annual General Meeting
*Holdings at December 31, 2020.  **Holdings at December 31, 2019.
Maria Moraeus Hanssen
Board member since 2019.
Born: 1965
Previously COO, Vice President/
CEO of Wintershall Dea Holding 
GmbH and President and CEO of 
DEA Deutsche Erdoel AG.
Held several executive positions in 
ENGIE SA, Aker ASA, Statoil ASA 
(now Equinor ASA) and Norsk 
Hydro ASA.
Education: Petroleum technology 
at the Norwegian University of 
Science and Technology (NTNU), 
and petroleum economics at IFP 
School in Paris.
Board member: Schlumberger lim-
ited, Scatec ASA, Oslobygg KF 
(chair) and Wastefront AS (chair)
Independent of the company and 
major shareholders.
Number of shares in Alfa Laval: 
–
Heléne Mellquist
Board member since 2019.
Born: 1964
CEO of Volvo Penta.
Previous positions include CEO of 
Rederi AB Transatlantic and a number 
of senior positions at Volvo Trucks, 
Volvo Buses and Volvo Penta.
Board member: Thule Group AB.
Education: Diploma in 
International Economy from the 
University of Gothenburg Executive 
Program Stockholm School of 
Economics.
Independent of the company and 
major shareholders.
Number of shares in Alfa Laval: 
–
Ray Mauritsson
Board member since 2020.
Born: 1962
President and CEO, Axis AB.
Former positions include several 
different leading positions in Axis 
Communications AB and Tac 
(today part of Schneider Electric).
Education: MSc. Engineering 
Physics, Lund University Faculty of 
Engineering. Executive MBA, Lund 
University School of Economics.
Independent of the company and of 
major shareholders.
Number of shares in Alfa Laval: 
–

65
Corporate Governance Report
Henrik Nielsen
Employee representative since 
2015.
Born: 1968
Employed by Alfa Laval since 1994.
Employee representative for the 
Swedish Metal Workers’ Union (IF 
Metall).
Number of shares in Alfa Laval:
50* (–**)
Susanne Jonsson
Employee representative since 
2016.
Born: 1965
Employed by Alfa Laval since 2008.
Employee representative for 
the Swedish Confederation of 
Professional Associations (SACO).
Number of shares in Alfa Laval:
–
Bror García Lantz
Employee representative since 
2012.
Born: 1965
Employed by Alfa Laval since 1990.
Employee representative for the 
Swedish Union of Clerical and 
Technical Employees in Industry 
(Unionen).
Number of shares in Alfa Laval:
100* (100**)
Leif Norkvist
Deputy member since 2009.
Born: 1961
Employed by Alfa Laval since 1993.
Deputy employee representative for  
the Swedish Metal Workers’ Union  
(IF Metall).
Stefan Sandell
Deputy member since 2005.
Born: 1971
Employed by Alfa Laval since 1989.
Deputy employee representative for  
the Swedish Organization for Managers 
(Ledarna).
Johnny Hultén
Deputy member since 2017.
Born: 1961
Employed by Alfa Laval since 1977.
Deputy employee representative for  
the Swedish Metal Workers’ Union  
(IF Metall).
Staffan Landén
Authorized Public Accountant, EY.
Born: 1963
Company auditor since 2018.
Karoline Tedevall
Authorized Public Accountant, EY.
Born: 1978
Company auditor since 2018.
Henrik Jonzén
Authorized Public Accountant, EY.
Born: 1977
Deputy auditor since 2018.
Andreas Mast
Authorized Public Accountant, EY.
Born: 1979
Deputy auditor since 2020.
Deputy employee representatives
Auditors
Deputy Auditors
Employee representatives
*Holdings at December 31, 2020.  **Holdings at December 31, 2019.

66
President and Group management
 
Jan Allde
Chief Financial Officer.
Born: 1967
Employed by Alfa Laval since 2018.
Chief Financial Officer since 2018. 
Former positions include several 
international positions at ABB 
from 1991 to 2017, most recently 
as Chief Financial Officer for the 
Americas.
Education: BSc. Econ from 
Stockholm University.
Number of shares in Alfa Laval: 
10,000* (–**)
Pascale Gimenez
Senior Vice President,  
Human Resources.
Born: 1966
Employed by Alfa Laval since 
August 1, 2018.
Former positions include Senior 
Vice President of Human 
Resources at various units within 
Sandvik and Electrolux.
Education: Master’s degree in 
marketing from ESSEC Business 
School and a degree in engineering 
from the Institut Supérieur Agricole 
de Beauvais.
Number of shares in Alfa Laval: 
–
Tom Erixon 
President and CEO.
Born: 1960
CEO since March 1, 2016.
Former positions include President and CEO of OVAKO AB  
and President of Sandvik Coromant. 
Board member: Boliden AB.
Education: MA Law from the University of Lund in Sweden and MBA Business 
Administration from IESE in Spain.
Number of shares in Alfa Laval:
101,200* (81,200**)
Emma Adlerton
General Counsel & Secretary to 
the Board of Directors.
Born: 1973
Employed by Alfa Laval since 2008.
General Counsel and Secretary 
to the Board of Directors since 
2015; President of Group Legal & 
Sustainability. Former positions 
include senior legal counsel in 
the Alfa Laval Group and attorney 
at law.
Education:  Master Laws (LL.M), 
Lund University.
Number of shares in Alfa Laval:
1,000*
 
Mikael Tydén
President, Operations Division.
Born: 1967
Employed by Alfa Laval since 1995.
President of the Operations 
Division since January 2017. 
Former positions include head of 
global manufacturing and supply 
of separators, decanters, hygienic 
fluid handling equipment and air 
heat exchangers 2005–2016.
Education: Ms. Mech. Eng.
Number of shares in Alfa Laval:
1,000* (1,000**)
Areas of responsibility
Remuneration to senior executives, pensions and 
severance pay/termination of employment
The President directs the daily operations and is responsible for ensuring that the Board has access to the 
necessary information and supporting documentation for its decision-making purposes. The President is 
also responsible for ensuring that the company’s accounting complies with applicable laws and regulations, 
and that the ethical guidelines included in Alfa Laval’s Business Principles are reﬂected in the conduct of 
the company. The President has the support of the Group management, to which responsibilities and au-
thority are delegated. The members of Group management include a head of global sales and service, four 
divisional managers and the heads of HR, Legal and Finance.
The remuneration principles for the President and other members of 
Group management are determined by the Annual General Meeting. For 
additional information, refer to pages 121–123 and 149–151.
*Holdings at December 31, 2020.  **Holdings at December 31, 2019.

67
Corporate Governance Report
Group management held eight scheduled meetings in 2020 during which minutes were 
taken. In addition, quarterly reviews were performed to discuss the business developments 
in the divisions and regions. These reviews addressed the business climate, earnings, earnings 
projections for the next 12 months and speciﬁc issues affecting the respective business 
areas. Separate strategy meetings were also held to address, among other areas, man-
agement’s proposals concerning the future direction with regard to organic growth and growth 
through acquisitions. In 2020, Group management meetings concentrated on addressing 
the effects of COVID-19, risks and opportunities in individual business units, products, 
application areas and geographic regions as well as the consequences for the supply chain.
Group management also addressed research, development and product launches as well 
as the company’s strategies and the future direction of the individual divisions. Additional 
topics of discussion included structures concerning processes, system support and the 
service business as well as opportunities within digital market communications and the de-
velopment of solutions for electronic development and control of the company’s products. 
Sustainability was also discussed during the meetings, with a focus on health and safety.
Joakim Vilson
Senior Vice President,  
Global Sales & Service.
Born: 1965
Employed by Alfa Laval since 1990.
Former positions include Executive 
Vice President in charge of the 
Central and Eastern Europe, Latin 
America, Middle East and Africa 
Regions, Head of Mid Europe 
Region and Head of the Process 
Industry segment.
Education: BSc. Eng.
Number of shares in Alfa Laval:
6,520* (6,520**)
Susanne Pahlén Åklundh
President, Energy Division.
Born: 1960
Employed by Alfa Laval since 1983.
President of the Energy Division since 
2017. Former positions include 
President of the Equipment Division, 
Head of Mid Europe and Nordic, 
and Head of the Process Industry 
segment.
Board member: Trelleborg AB.
Education: BSc. Eng.
Number of shares in Alfa Laval:
10,000* (10,000**)
Nish Patel
President, Food & Water Division.
Born: 1962
Employed by Alfa Laval since 1984.
Former positions include Executive 
Vice President in charge of the 
Western Europe and North America 
Regions, and Head of India and the 
UK.
Education: BSc. Eng.
Number of shares in Alfa Laval:
47,552* (47,552**)
Sameer Kalra
President, Marine Division.
Born: 1962
Employed by Alfa Laval since 2011.
Previously Head of the Pumping 
Systems and Offshore business 
units.
Education: Marine engineer and 
MBA.
Number of shares in Alfa Laval: 
2,000* (–**)
Operations*
Global Sales & Service*
Operational control
Group management meetings in 2020
President and CEO*
CSR
Food & Water*
HR*
Corporate Business 
Development
Marine*
Communications
Energy*
Finance*
Alfa Laval’s operational control model comprises a matrix in which the Group’s divisions are presented vertically, intersecting with the Group’s geographic regions, which are presented 
horizontally. The Operations Division, which is responsible for production-related procurement, production, logistics and distribution, serves as a shared supply chain for the sales divisions.
*Members of Group management
IT
Legal*
*Holdings at December 31, 2020.  **Holdings at December 31, 2019.

68
Board of Directors’ report  
on internal control
Control environment
The control environment includes the internal 
governance instruments adopted by the 
Board for the company’s daily operations. 
The control instruments comprise policy 
documents, which are continuously assessed, 
reviewed and updated. These documents 
include, for example, the Board’s formal work 
plan, the President’s instructions, reporting 
instructions, the company’s ﬁnance policy, 
business principles, investment policy and 
communication policy.
The Board has overriding responsibility for 
ﬁnancial reporting, among other things, and 
must therefore assess the performance 
and earnings of the operations through a 
package of reports including results, fore-
casts and analyses of key indicators. The 
Board also reviews the company’s interim 
reports and year-end report and is to meet 
with the external auditors at least once a 
year without the presence of the President 
or other members of Group management.
The Board’s Audit Committee is tasked 
with ensuring compliance with the principles 
for ﬁnancial reporting and internal control. 
The Committee follows up the effectiveness 
of the internal control system and reviews 
the ﬁnancial procedures to ensure that the 
information can be traced back to underlying 
ﬁnancial systems and that it is in line with 
legislation and relevant standards.
The Committee examines procedures 
for reporting and ﬁnancial controls as well as 
addressing the company’s ﬁnancial reports. 
It also monitors, evaluates and discusses 
signiﬁcant issues related to accounting and 
ﬁnancial reporting. The Committee evaluates 
and manages information pertaining to dis-
putes and potential improprieties, and as-
sists management with identifying and 
evaluating mainly ﬁnancial and similar risks 
that are relevant to the operations in order 
The Board is responsible for the internal control of the company, with the aim of safeguarding its assets 
and thus the interests of the shareholders. Through sound internal control, the Board ensures the 
reliability of Alfa Laval’s reporting and its compliance with legislation, regulations, applicable accounting 
policies and the company’s Business Principles. All communication and ﬁnancial reporting is to be 
correct, relevant, objective and transparent.
to ensure that the focus is on managing 
these risks. It also reviews the company’s 
information security system and the contin-
gency plans in place to ensure delivery of 
ﬁnancial information.
The Audit Committee has the right to 
determine the focus of the internal audit and 
is responsible for ensuring the efﬁciency of 
the function by assessing its activities, re-
sources and structure. The Committee is 
also responsible for reviewing the results 
and recommendations of the internal  
audit to ensure that they are handled in an 
appropriate manner. It is responsible for re-
viewing the internal audit plan every six 
months to ensure that it addresses the rel-
evant risk areas and for ensuring that there is 
suitable coordination between the internal 
and external audit. The Audit Committee 
holds regular meetings with the external 
auditors and reviews their work, qualiﬁcations 
and independence, and the results of this 
review are reported to the company’s Nomi-
nating Committee on an annual basis. The 
Audit Committee supports the Nominating 
Committee in its work to nominate auditors 
and conducts an annual review of the pro-
posed scope of the audit. Reports are pro-
vided to the Board regarding internal meetings 
as well as meetings with the internal auditors, 
the external auditors and various specialists 
in Group management and its support 
functions. The Committee is responsible for 
reviewing signiﬁcant results from the external 
audit and the recommendations issued by the 
external auditors as a result. It is also respon-
sible for establishing guidelines that ensure 
the independence of the external auditors.
The President is subject to instructions 
issued by the Board and is responsible for 
ensuring an effective control environment. 
The President is also responsible for the 
ongoing control work and for ensuring that 
the company’s accounting complies with 
legislation and that the management of assets 
is adequately performed. The President is 
also responsible for ensuring that all Board 
members regularly receive sufﬁcient infor-
mation to be able to assess the company’s 
ﬁnancial position.
Group management is responsible for 
managing and maintaining the internal con-
trol systems required to manage signiﬁcant 
risks in the company’s operating activities. 
Management is also responsible for clearly 
ensuring that all employees understand the 
requirements for and the individual’s role in 
maintaining sound internal control.
The internal auditors review and implement 
improvements to the internal control function, 
conduct internal audits – which are reported 
to the Audit Committee – and propose plans 
for the coming six to eight months. The 
internal auditors also issue reports from 
individual audits to the appropriate members 
of Group management. Procedures are in 
place for performing regular reviews of the 
agreed actions to guarantee that speciﬁc 
actions are taken following the internal audit. 
These are based on an agreed schedule set 
with the party responsible for the individual 
activities. The Internal Audit Function com-
prises four internal auditors, internal specialist 
resources and external auditors. Internal 
audits encompass a broad spectrum of 
functions and issues determined by the 
Board. The areas audited include: compliance 
with the systems, guidelines, policies and 
processes established for the Group’s 
business operations; the existence of systems 
to ensure that ﬁnancial transactions are carried 
out, archived and reported in an accurate 
and lawful manner; and opportunities to 
improve management control, the company’s 
proﬁtability and the organization, which 
may be identiﬁed during audits. In 2020, 
35 internal audits were performed.

69
Corporate Governance Report
Risk assessment
Within the framework of the company’s 
operating activities and review functions, 
procedures are in place for risk assessments 
pertaining to the ﬁnancial reporting. These 
procedures aim to identify and evaluate the 
risks that may affect internal control. The 
procedures encompass risk assessments 
in conjunction with strategic planning and 
acquisition activities as well as processes for 
identifying amendments to the accounting 
policies to ensure that they are accurately 
reﬂected in the ﬁnancial reporting.  
Control structures
Control structures are in place in all areas of 
the organization in order to prevent, identify 
and adjust errors or deviations. They manage 
the risks that the Board and management 
consider to be signiﬁcant to the business, 
internal control and ﬁnancial reporting. These 
structures comprise both an organization with 
clearly deﬁned roles that enables an effective 
and – from an internal control perspective 
– appropriate division of responsibility, and 
speciﬁc control activities that enable the 
identiﬁcation and timely prevention of risks 
becoming a reality. Control activities also 
include clearly deﬁned decision-making 
processes and a policy for decision-making 
with respect to, for example, investments, 
agreements, acquisitions and divestments, 
earnings analyses and other forms of analytical 
reviews, reconciliations, inventory-taking 
and automatic controls in the IT systems.
Information and communication
The company’s regulations, guidelines and 
manuals are communicated through several 
internal channels and the efﬁciency of this 
communication is monitored on an ongoing 
basis. There are formal and informal infor-
mation channels that enable employees to 
communicate important information to rele-
vant recipients and ultimately, if necessary, 
to the Board of Directors. Clear guidelines 
have also been established for external 
communications, the aim of which is to 
provide the most accurate and relevant 
overview possible while at the same time 
ensuring that all obligations are met.
Follow-up
The internal control process is mainly followed 
up by two bodies: the Audit Committee 
and the Internal Audit Function. The Audit 
Committee establishes the principles that 
apply for the company with respect to ac-
counting and ﬁnancial reporting, and moni-
tors compliance with these regulations. 
The Committee meets with the external 
auditors to obtain information about the 
focus and scope of the audit and to discuss 
results and coordination of the external and 
internal audits. In addition, the Committee 
establishes the direction, scope and time 
schedules for the work of the internal audit 
team, whose audits are reported to the Audit 
Committee and continuously to Group 
management so that any necessary mea-
sures may be taken. The scope of the inter-
nal audit includes, among other factors, 
operational efﬁciency, compliance with regu-
lations and guidelines, and the quality of 
ﬁnancial reporting from the subsidiaries.
Alfa Laval has implemented a manage-
ment testing process for key internal con-
trols over business processes in the com-
pany. The managers and key employees 
evaluated their compliance through a con-
trol self-assessment test for important in-
ternal controls in these business processes 
and will perform this on an annual basis. 
Based on the results, the internal controls 
framework will be strengthened and assist 
in risk-based valuation of the business pro-
cesses at Alfa Laval.
Lund, February 2021
Board of Directors

70
Auditor’s report on the corporate 
governance statement
Engagement and responsibility
It is the Board of Directors who is responsible for the cor-
porate governance statement for the year 2020 on pages 
55–69 and that it has been prepared in accordance with the 
Annual Accounts Act. 
The scope of the audit
Our examination has been conducted in accordance with 
FAR’s auditing standard RevU 16 The auditor’s examination of 
the corporate governance statement. This means that our 
examination of the corporate governance statement is dif-
ferent and substantially less in scope than an audit conducted 
in accordance with International Standards on Auditing and 
generally accepted auditing standards in Sweden. We be-
lieve that the examination has provided us with sufﬁcient 
basis for our opinions.
Opinions
A corporate governance statement has been prepared. 
Disclosures in accordance with chapter 6 section 6 the second 
paragraph points 2-6 the Annual Accounts Act and chapter 
7 section 31 the second paragraph the same law are consis-
tent with the annual accounts and the consolidated accounts 
and are in accordance with the Annual Accounts Act.
To the general meeting of the shareholders of Alfa Laval AB (publ), corporate identity number 556587-8054
 
 
Lund 9 March 2021 
 
Staffan Landén  
 
Karoline Tedevall
 
Authorized Public Accountant   
 
Authorized Public Accountant 
 
Ernst & Young AB 
 
Ernst & Young AB

Financial statements
Board of Directors’ Report 
72
Consolidated cash ﬂows 
86
 
Comments to the consolidated cash ﬂows 
87
Consolidated comprehensive income 
88
 
 Comments to the consolidated  
comprehensive income 
89
Consolidated ﬁnancial position 
92
 
 Comments on the consolidated  
ﬁnancial position 
94
Changes in consolidated equity 
94
 
 Comments on changes  
in consolidated equity 
95
Parent company cash ﬂows 
96
Parent company income 
96
Parent company ﬁnancial position 
97
Changes in parent company equity 
98
Notes to the ﬁnancial statements 
99
 
Accounting principles 
99
 
 Objectives, policies and processes  
for managing capital 
107
 
Financial risks 
108
 
Operational risks 
112
 
Notes 
118
Auditor’s report 
152
Ten-year overview 
156
Deﬁnitions 
158

72
Board of Directors’ Report
The Board of Directors and the President of Alfa Laval AB (publ) hereby submit their annual report for the year of operation 
January 1, 2020 to December 31, 2020.
The information in this annual report is such information that Alfa 
Laval AB (publ) must publish in accordance with the Securities 
Market Act. The information was made public by publishing the annual 
report on Alfa Laval’s website on March 31, 2021 at 10.00 CET. 
Alfa Laval AB is a public limited liability company. The seat of the 
Board is in Lund and the company is registered in Sweden under 
corporate registration number 556587-8054. The visiting address 
of the head ofﬁce is Rudeboksvägen 1 in Lund and the postal ad-
dress is Box 73, 221 00 Lund, Sweden. Alfa Laval’s website is: 
www.alfalaval.com.
Financial statements
The following parts of the annual report are financial statements: 
the Board of Directors’ Report, the ten-year overview, the consoli-
dated cash flows, the consolidated comprehensive income, the 
consolidated financial position, the changes in consolidated equity, 
the parent company cash flows, the parent company income, the 
parent company financial position, the changes in parent company 
equity and the notes. All of these have been audited by the auditors.
The Corporate Governance Report, which also has been reviewed 
by the auditors, is to be found on page 55.
The company’s statutory sustainability report 2020 is found in the 
Sustainability Report together with the risk section of the annual re-
port. These two reports constitute the statutory sustainability report 
for the parent company and the consolidated Group. Acquisitions 
must within three years report sustainability data according to the 
Group’s routines for sustainability reporting. The separate Sustainability 
Report was published at the same time as the annual report and is 
to be found on Alfa Laval’s website Alfa Laval – Sustainability Reports.
 
Ownership and legal structure
Alfa Laval AB (publ) is the parent company of the Alfa Laval Group.
The company had 43,417 (41,147) shareholders on December 31, 
2020. The largest owner is Tetra Laval International SA, Switzerland, who 
owns 29.1 (29.1) percent. Next to the largest owner, there are nine 
institutional investors with ownership in the range of 5.8 to 0.7 percent. 
These ten largest shareholders owned 49.7 (51.7) percent of the shares.
Operations
The Alfa Laval Group is engaged in the development, production and 
sales of products and systems based on three main technologies: 
separation/filtration, heat transfer and fluid handling. 
Alfa Laval's business is divided into three Business Divisions “Energy”, 
“Food & Water” and ”Marine” that sell to external customers and are 
responsible for the manufacturing of the products and one division 
“Operations & Other” covering procurement and logistics as well as 
corporate overhead and non-core businesses. These four divisions 
constitute Alfa Laval’s four operating segments. The former “Green-
house” Division ceased to exist as per the end of 2019 when the 
last operations were divested.
The customers to the Energy Division purchase products and 
systems for energy applications, whereas the customers to the 
Food & Water Division purchase products and systems for food 
and water applications. The customers to the Marine Division pur-
chase products and systems for marine and offshore applications. 
The three Business Divisions are in turn split into a number of 
Business Units. The Energy Division consists of four Business Units: 
Brazed & Fusion Bonded Heat Exchangers, Energy Separation, 
Gasketed Plate Heat Exchangers and Welded Heat Exchangers. 
The Food & Water Division consists of ﬁve Business Units: Decanters, 
Food Heat Transfer, Food Systems, Hygienic Fluid Handling and High 
Speed Separators. The Marine Division consists of four Business 
Units: Boiler Systems, Gas Systems, Marine Separation & Heat 
Transfer Equipment and Pumping Systems.
Material factors of risk and uncertainty
The main factors of risk and uncertainty facing the Group concern 
the development of the COVID-19 pandemic, the price development 
of metals, fluctuations in major currencies and the business cycle. 
For additional information, see the sections on financial and opera-
tional risks and the section on critical accounting principles, the 
section on key sources of estimation uncertainty and the section 
on judgements under accounting principles.
Acquisition of businesses
On December 31, 2020 Alfa Laval has acquired Sandymount, a US-
based beverage technology company with a unique and patented 
membrane technology to concentrate beer. The technology in combi-
nation with Alfa Laval’s extensive product range, will open up interesting 
business opportunities for the company and enable a more sustainable 
beer-delivery supply chain. Sandymount’s patented membrane tech-
nology, Revos™, in combination with Alfa Laval’s extensive product 
range for beer production, will enable beer producers to deliver high 
quality beer in concentrated form. The solution addresses the trans-
portation inefficiencies in beer supply where beer remains one of the 
few water-laden products distributed as a ‘mostly water’ from producer 
to consumer. The newly acquired company will be integrated into 
the Business Unit Food Systems in the Food & Water Division.
A smaller operation, WCR Benelux BV in the Netherlands, was 
acquired on July 1, 2020.
On December 18, 2018 Alfa Laval announced that it has signed an 
agreement to acquire Airec – a Malmö, Sweden-based innovation com-
pany with patented technology for dimple asymmetry heat exchangers. 
The new company will be integrated into the Brazed & Fusion Bonded 
Heat Exchangers unit of the Energy Division. The acquired technology 
represents untapped opportunities in combination with Alfa Laval’s 
existing heat transfer know-how, manufacturing footprint and global 
market presence. The transaction was closed on January 2, 2019. 
Divestment of businesses
The operations and net assets of DSO Fluid Handling Inc in the U.S. 
were divested on August 28, 2020. The divestment has resulted in a loss 
of SEK -55 million that is reported as a comparison distortion item.
On December 12, 2018 Alfa Laval announced that it had signed 
an agreement to sell part of its air heat exchanger business related 
to commercial/industrial air heat exchangers in the Greenhouse di-
vision to the LU-VE Group. The transaction was closed on May 1, 
2019. The divestment resulted in a gain of SEK 260 million that 
was reported as a comparison distortion item.
The last remaining Greenhouse operation shell-and-tube Sarasota, 
also known as Alfa Laval Champ, was sold to Thermal Solutions Manu-
facturing on December 31, 2019. The divestment resulted in a loss 
of SEK -71 million that was reported as a comparison distortion item.
Sale of real estate
During 2020 a few minor properties in different countries have 
been sold for SEK 7 (0) million with a realised result of SEK -0 (-4) 
million, which has been reported in other operating costs/income.
A small property in France is empty and has been for sale for several 
years. It is not expected to be sold within the next year. Five properties 
in India are for sale and are expected to be sold within the next year. 
The latter have therefore been classiﬁed as current assets held for 
sale with SEK 55 (-) million. The fair value of the properties for sale 
exceeds the book value by approximately SEK 24 (2) million.

73
Board of Directors’ Report
0
2
4
6
8
10
12
14
Q420
Q320
Q220
Q120
Q419
Q319
Q219
Q119
Q418
Q318
Q218
Q118
0
7
14
21
28
35
42
49
Orders received
 
 
BnSEK
quarter
BnSEK
12 months
Order intake per quarter
Orders received rolling 12 months
Orders received amounted to SEK 39,833 (44,119) million during 2020. 
Order bridge
Consolidated
SEK millions/%
2020
2019
Order intake last year
44,119
45,005
Organic 1)
-5.8%
-3.6%
Structural 1)
-0.2%
-2.1%
Currency
-3.7%
3.7%
Total
-9.7%
-2.0%
Order intake current year
39,833
44,119
1) Change excluding currency effects.
Orders received from the aftermarket Service constituted 29.6 (29.1) percent of the Group's 
total orders received for 2020.  
Order bridge Service
Consolidated
SEK millions/%
2020
2019
Order intake last year
12,824
11,568
Organic 1)
-4.4%
6.6%
Structural 1)
-0.1%
-0.4%
Currency
-3.7%
4.7%
Total
-8.2%
10.9%
Order intake current year
11,773
12,824
1) Change excluding currency effects.
• Organic: change excluding acquisition/divestment of businesses.
• Structural: acquisition/divestment of businesses.
• Service: Parts and service.

74
Large orders (>EUR 5 million) 
Division
Order
received in
Delivery
date
Order 
amount
Total per Business Unit
Business Unit
2020
2019
Scope of supply
SEK millions
Energy
Welded Heat Exchangers
Alfa Laval Packinox heat exchangers to a petrochemical plant in China.
Q1
2020
60
 
Compact heat exchangers to a refinery and petrochemical plant in China.*
Q2
2021
76
 
Air cooler systems to a gas processing plant in the U.S. 
Q2
2021
160
 
Alfa Laval OLMI heat exchangers to a gas compression plant in Algeria. 
Q3
2021
75
 
Alfa Laval Packinox heat exchangers to a petrochemical plant in China and a  
refinery in Mexico. 
Q3
2021/2022
130
501
950
Gasketed Plate Heat Exchangers
 
Compact heat exchangers to a refinery and petrochemical plant in China.*
Q2
2021
19
19
–
Food & Water
Decanters
 
 
Decanters to a wastewater treatment plant in Singapore.
Q4
2022
75
75
225
Food Systems
 
 
 
 
A process line to be installed in a new St1 biorefinery in Sweden.
Q1
2020
60
 
Processing line to HollyFrontier Corporation for production of renewable  
diesel in the US. 
Q4
2021
130
190
170
Marine
Boiler Systems
–
155
Pumping Systems
 
Framo pumping systems to two customers in China and Singapore. 
Q1
2020/2021
170
 
Framo pumping systems to an FPSO** vessel to be built in China.
Q2
2021
130
 
Framo pumping systems for two FPSO** vessels outside Brazil.
Q3
2021
155
 
Framo pumping systems for three FPSO** vessels to be built in China.
Q3
2021
275
730
165
Total
1,515
1,665
*One order split on two Business Units.  ** FPSO = Floating Production, Storage and Offloading.
Large orders 
Large orders are orders with a value over EUR 5 million. The volume of large orders is an important indicator of the demand situation and is 
therefore monitored separately within Alfa Laval. A large volume of large orders normally also means a good load in the factories. During 2020 
Alfa Laval has received the following large orders:

75
Board of Directors’ Report
Sales bridge
Consolidated
SEK millions/%
2020
2019
Net sales last year
46,517
40,666
Organic 1)
-6.6%
12.5%
Structural 1)
-0.9%
-2.4%
Currency
-3.4%
4.3%
Total
-10.9%
14.4%
Net sales current year
41,468
46,517
1) Change excluding currency effects.
Net invoicing relating to Service constituted 28.7 (26.9) percent of the Group's total net  
invoicing for 2020.  
Sales bridge Service
Consolidated
SEK millions/%
2020
2019
Net sales last year
12,544
11,493
Organic 1)
-1.3%
4.8%
Structural 1)
-0.2%
-0.3%
Currency
-3.6%
4.6%
Total
-5.1%
9.1%
Net sales current year
11,898
12,544
1) Change excluding currency effects.
Excluding currency effects and adjusted for acquisition and divestment of businesses the 
order backlog was 7.6 percent lower than the order backlog at the end of 2019.      
Net sales
Net sales amounted to SEK 41,468 (46,517) million during 2020.
0
5
10
15
20
25
2020
2019
2018
0
20
40
60
80
100
17.7
5.5
23.2
16.4
5.2
21.6
15.1
3.9
19.0
For delivery during next year
For delivery later than next year
Part of last 12 months' invoicing 
BnSEK
%
Order Backlog December 31

76
Energy Division
Consolidated
SEK millions
2020
2019
Orders received
11,952
13,963
Order backlog*
4,740
5,214
Net sales
12,187
13,814
Operating income**
1,882
2,069
Operating margin***
15.4%
15.0%
Depreciation and amortisation
452
467
Investments****
352
453
Assets*
12,726
14,570
Liabilities*
5,574
5,890
Number of employees*
5,111
5,365
* At the end of the period. ** In management accounts. *** Operating income in relation to net sales. **** Excluding new leases.
Comparison figures for last year have been restated due to the organisational change described above.
Operating segments
Energy Division
The division targets customers in HVAC and refrigeration markets as well as process industries such as 
chemicals, petrochemical industry and the oil & gas industry. Focus is on increased energy efficiency, 
waste heat recovery and sustainable solutions.
The Energy Division consists of four Business Units: Brazed & Fusion Bonded Heat Exchangers, Energy Separation, Gasketed Plate Heat 
Exchangers and Welded Heat Exchangers.
Order intake 2020 split per end market/business unit
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Q420
Q320
Q220
Q120
Q419
Q319
Q219
Q119
0
2
4
6
8
10
12
14
16
18
Quarterly development
 
BnSEK
%
Orders received
Operating margin
Net sales
Operating segments
Organisational change
As of January 1, 2020, the product groups within Operations have been moved over to the Business Units within the Divisions. This gives 
the Business Units a clearer financial consolidation as a part of a more decentralised business organisation. Due to this the comparison 
figures for previous periods have been restated, which has impacted depreciation and amortisation, investments, assets, liabilities and 
number of employees by division. Remaining in Operations is procurement, logistics, distribution and production development.
The depreciation and amortisation that have been moved from Operations to the Divisions in the comparison periods have not impacted 
the operating income in the Divisions.
Other 6%
Chemicals 6%
Power 7%
Refrigeration 
7%
Machinery & 
Manufacturing 
13%
Refinery 8%
Petrochemicals 13%
Oil & Gas 13%
HVAC 27%
Gasketed 
Plate Heat 
Exchangers
Welded Heat 
Exchangers
Brazed & Fusion 
Bonded Heat 
Exchangers
Energy  
Separation

77
Order intake
Order bridge
Consolidated
SEK millions/%
2020
2019
Order intake last year
13,963
12,685
Organic 1)
-11.5%
5.4%
Structural 1)
0.0%
0.1%
Currency
-2.9%
4.6%
Total
-14.4%
10.1%
Order intake current year
11,952
13,963
1) Change excluding currency effects
The Energy Division’s overall order volumes declined compared to 
last year. 
The main reason for the decline is lower investments by customers 
active in the hydrocarbon chain. The customers were hit by over-
capacity and lower demand for oil due to the COVID-19 pandemic 
and in addition by the lower oil price. For the remaining industries, that 
together makes up approximately two thirds of the volume, order 
intake was ﬂat. Sectors that did grow in the year was refrigeration 
and power. The drop in order intake was higher in geographies that 
have a large industrial sector that is based on the hydrocarbon 
chain, like North America, Russia and the Middle East.
Lockdowns and low activity have reduced the order intake for service 
during 2020. The industries behind the lower order intake for service 
were also to be found in the hydrocarbon chain. In other process 
industries and light industries, the order intake for service was ﬂat.
Order intake
Order bridge
Consolidated
SEK millions/%
2020
2019
Order intake last year
13,963
12,685
Organic 1)
-11.5%
5.4%
Structural 1)
0.0%
0.1%
Currency
-2.9%
4.6%
Total
-14.4%
10.1%
Order intake current year
11,952
13,963
1) Change excluding currency effects.
The Energy Division’s overall order volumes declined compared to 
last year. 
The main reason for the decline is lower investments by customers 
active in the hydrocarbon chain. The customers were hit by over-
capacity and lower demand for oil due to the COVID-19 pandemic 
and in addition by the lower oil price. For the remaining industries, that 
together makes up approximately two thirds of the volume, order 
intake was ﬂat. Sectors that did grow in the year was refrigeration 
and power. The drop in order intake was higher in geographies that 
have a large industrial sector that is based on the hydrocarbon 
chain, like North America, Russia and the Middle East.
Lockdowns and low activity have reduced the order intake for service 
during 2020. The industries behind the lower order intake for service 
were also to be found in the hydrocarbon chain. In other process 
industries and light industries, the order intake for service was ﬂat.
Order intake 2020 split on:
Net sales
Sales bridge
Consolidated
SEK millions/%
2020
2019
Net sales last year
13,814
12,413
Organic 1)
-8.9%
6.4%
Structural 1)
0.0%
0.1%
Currency
-2.9%
4.8%
Total
-11.8%
11.3%
Net sales current year
12,187
13,814
1) Change excluding currency effects.
The decrease in net invoicing during the year was due to lower 
deliveries to oil and gas customers.
Operating income
Income bridge
Consolidated
SEK millions
2020
2019
Operating income last year
2,069
1,770
Volume 1)
-407
257
Mix 1)
114
160
Costs 1)
143
-182
Currency
-37
64
Operating income current year
1,882
2,069
1) Change excluding currency effects.
The drop in net sales has partly been compensated for by a positive 
mix and lower overhead costs. The latter following the cost reduction 
programme and low travel activities. Currency effects had a negative 
impact on the result.
After Sales &  
Service 26%
Capital sales 74%
Board of Directors’ Report

78
Food & Water Division
Consolidated
SEK millions
2020
2019
Orders received
13,814
14,026
Order backlog*
5,056
4,894
Net sales
13,414
14,189
Operating income**
2,371
2,268
Operating margin***
17.7%
16.0%
Depreciation and amortisation
384
385
Investments****
295
288
Assets*
11,226
12,522
Liabilities*
5,184
5,088
Number of employees*
6,215
6,410
* At the end of the period. ** In management accounts. *** Operating income in relation to net sales. **** Excluding new leases.
Comparison figures for last year have been restated due to the organisational change described above.
Operating segments
Food & Water Division
The division offers different types of products for heat transfer, separation and hygienic fluid handling 
and targets customers in food, pharmaceuticals, biotech, vegetable oils, brewery, dairy and body 
care products. In addition, the division focuses on public and industrial water treatment as well as 
wastewater and waste treatment.
The Food & Water Division consists of ﬁve Business Units: Decanters, Food Heat Transfer, Food Systems, Hygienic Fluid Handling and 
High Speed Separators. 
Order intake 2020 split per end market/business unit
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Q420
Q320
Q220
Q120
Q419
Q319
Q219
Q119
0
2
4
6
8
10
12
14
16
18
20
 
%
Quarterly development
BnSEK
Orders received
Operating margin
Net sales
Other 2%
Protein 6%
Brewery 7%
Pharma &  
Biotech 10%
Ethanol,  
Starch &  
Sugar 9%
Edible Oil 11%
Waste & Water 11%
Prep. Food  
& Beverage 
20%
Dairy 24%
Hygienic 
Fluid 
Handling
Decanters
High Speed 
Separators
Food Heat 
Transfer
Food 
Systems

79
Board of Directors’ Report
Order intake
Order bridge
Consolidated
SEK millions/%
2020
2019
Order intake last year
14,026
13,691
Organic 1)
2.7%
-1.8%
Structural 1)
0.0%
–
Currency
-4.2%
4.2%
Total
-1.5%
2.4%
Order intake current year
13,814
14,026
1) Change excluding currency effects.       
Excluding currency effects, the division’s order intake increased slightly 
compared to last year, despite a certain reluctance among customers 
to push through decisions on larger, often capacity related, invest-
ments during the pandemic. Geographically, Latin America showed 
solid growth and Asia was up, not least driven by strong growth in 
China. Eastern Europe showed growth across most countries. 
The pharma and biotech market grew strongly, partly as a result 
of the pandemic, where nations and pharma and biotech companies 
reassessed their supply chains to mitigate any future vulnerability. 
The waste & water sector stayed ﬂat after a very strong 2019 that 
included some very large orders. Order intake from the edible oil 
industry grew, even though low commodity prices to a certain extent 
impacted the tendency to invest during the pandemic. However, a 
breakthrough order in the USA with the new HVO (Hydrotreated 
Vegetable Oil) technology for biodiesel, laid the foundation for a new 
interesting market. Order intake for dairy grew slightly and activity 
level and sentiment remained positive in the industry, which combined 
with increased sales activities via more channels contributed positively. 
The brewery sector came in slightly below last year, being one of the 
most negatively impacted industry sectors in the pandemic. Demand 
in ethanol, starch & sugar contracted slightly compared to last year 
where predominantly the ethanol market in North America was im-
pacted by low crude oil prices, with demand for alternative fuels 
getting lower. Protein applications grew strongly, with more extended 
by-product utilization and with opportunities in a changing food market 
with new sources of protein. For the more wider application area prepared 
food and beverage, the order intake was marginally below last year.
Demand in service increased compared to last year. Parts sales 
saw a good growth, but also service offerings grew, despite access 
restrictions to customer sites being a constraint during the pandemic, 
something partly mitigated with new remote guidance tools. 
Net sales
Sales bridge
Consolidated
SEK millions/%
2020
2019
Net sales last year
14,189
13,210
Organic 1)
-1.7%
2.9%
Structural 1)
0.0%
–
Currency
-3.8%
4.5%
Total
-5.5%
7.4%
Net sales current year
13,414
14,189
1) Change excluding currency effects.
Net sales contracted slightly compared to last year, mainly related 
to the base business*, whereas net sales for service increased 
somewhat.
Operating income
Income bridge
Consolidated
SEK millions
2020
2019
Operating income last year
2,268
2,110
Volume 1)
-99
134
Mix 1)
172
3
Costs 1)
94
-67
Currency
-64
88
Operating income current year
2,371
2,268
1) Change excluding currency effects.
Operating income increased compared to last year, despite a slight 
contraction in net sales. A favourable mix more than mitigated the 
drop in net sales. A positive cost development, not least from the 
savings programme initiated to counter the expected impact of the 
pandemic, also contributed positively. The currency effect was 
negative due to the strengthening of the Swedish krona. 
Order intake 2020 split on:
After Sales &  
Service 31%
Capital sales 69%
* Base business and base orders refer to orders with an order value of less than EUR 0.5 million.

80
Marine Division
Consolidated
SEK millions
2020
2019
Orders received
14,067
15,953
Order backlog*
9,173
11,443
Net sales
15,867
17,993
Operating income**
2,758
3,425
Operating margin***
17.4%
19.0%
Depreciation and amortisation
814
884
Investments****
137
177
Assets*
24,086
27,796
Liabilities*
6,695
8,481
Number of employees*
4,489
4,702
* At the end of the period. ** In management accounts. *** Operating income in relation to net sales. **** Excluding new leases.
Comparison figures for last year have been restated due to the organisational change described above.
Operating segments
Marine Division
The division’s customers include shipowners, shipyards, manufacturers of diesel and gas engines, 
as well as companies that work with offshore extraction of oil and gas. The offering includes pumping 
systems, boilers, heat transfer equipment, high speed separators and several different environmental 
products, including systems to clean ballast water and exhaust gases.
The Marine Division consists of four Business Units: Boiler Systems, Gas Systems, Marine Separation & Heat Transfer Equipment and 
Pumping Systems.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Q420
Q320
Q220
Q120
Q419
Q319
Q219
Q119
0
2
4
6
8
10
12
14
16
18
20
22
 
%
Quarterly development
BnSEK
Orders received
Operating margin
Net sales
Order intake 2020 split per end market/business unit
Ship Building & 
Shipping 76%
Other 1%
Engine Power 8%
Offshore 15%
Environmental 
products
Separation and 
heat transfer
Pumping  
systems
Boilers

81
Board of Directors’ Report
Order intake
Order bridge
Consolidated
SEK millions/%
2020
2019
Order intake last year
15,953
17,322
Organic 1)
-7.7%
-10.7%
Structural 1)
–
–
Currency
-4.1%
2.8%
Total
-11.8%
-7.9%
Order intake current year
14,067
15,953
1) Change excluding currency effects.      
Order intake declined compared to last year due to lower demand 
for all product areas except ballast water and pumping systems.
Order intake for Alfa Laval PureSOx decreased signiﬁcantly com-
pared to last year. The uncertainty in the marine industry market af-
ter the ﬁrst quarter contributed to a generally lower market demand 
for scrubber technologies. Demand for PureBallast was, on the 
other hand, unchanged compared to last year. General demand for 
equipment tied to the building of new vessels was on a lower level 
than last year with fewer vessels being contracted in the year. Boilers, 
inert gas systems, heat exchangers, separators and freshwater 
generators recorded a lower demand, whereas demand for pumping 
systems increased compared to last year, mainly due to a large 
number of offshore orders. Products going into the onshore engine 
power applications saw a lower demand than last year.
Order intake for service developed overall negatively despite an 
increased demand from the growing installed base of environmental 
products. A lower level of vessel utilization and travel restrictions 
for onboard service resulted in a lower demand for mainly repairs 
and ﬁeld service, while sales of spare parts were stable.
Net sales
Sales bridge
Consolidated
SEK millions/%
2020
2019
Net sales last year
17,993
13,583
Organic 1)
-8.4%
28.5%
Structural 1)
–
–
Currency
-3.4%
4.0%
Total
-11.8%
32.5%
Net sales current year
15,867
17,993
1) Change excluding currency effects.
Net sales were lower than last year due to a lower level of deliveries 
across most product groups, except mainly ballast water systems. 
In addition, the decline in service for the last three quarters of the 
year resulted in lower service revenues. 
Operating income
Income bridge
Consolidated
SEK millions
2020
2019
Operating income last year
3,425
2,328
Volume 1)
-480
1,273
Mix 1)
-142
110
Costs 1)
62
-344
Currency
-107
58
Operating income current year
2,758
3,425
1) Change excluding currency effects.
The operating income declined compared to last year. This was 
mainly driven by a lower sales volume in both capital goods and 
service and a negative mix effect from an unfavourable product mix 
in capital sales and decreased service sales. Overhead costs de-
creased compared to last year due to the cost reduction programme 
and decreased travelling, slightly mitigated by increased royalty 
payments for PureBallast.
Order intake 2020 split on:
After Sales &  
Service 31%
Capital sales 69%

82
Information about geographical areas
All comments are excluding currency effects. 
Western Europe including Nordic
The region showed a lower order intake than last year, mainly due 
to the weak development in large orders. Energy grew in Nordic 
and Food & Water experienced a good growth in Mid Europe, 
Iberica and in the United Kingdom. Marine had a strong develop-
ment in pumping systems in Nordic and Benelux.
Central and Eastern Europe
The order intake contracted compared to last year, when several 
large orders were received in Energy in Russia. All three divisions 
showed strong growth in the base business*.
North America
The order intake for the region decreased compared to last year. 
Energy was affected from the decline of the oil and gas, and refinery 
industries following the drop in the oil price. Food & Water did well 
in pharma & biotech, edible oil and brewery. Marine received less 
orders from cruise ships influenced by travel restrictions.
Latin America
The growth in Latin America was good throughout the region across 
the three divisions. Energy grew in Argentina, Chile, Peru and Mexico. 
Food & Water developed strongly in almost all countries in the region. 
The growth in Marine was driven by Brazil, Venezuela, Colombia 
and Panama. The order intake for service displayed good growth. 
Asia
The region grew compared to last year, influenced by Food & 
Water and Marine. The order intake in China was flat, but with 
good growth for Food & Water and Energy. South Korea, Malaysia, 
Singapore and Vietnam grew strongly, while Middle East, India and 
Indonesia decreased their order intake due to oil & gas, refinery & 
offshore. China and South Korea showed good growth in 
PureSOx.
Africa and Oceania
The growth in the region was driven by Australia in Food & Water 
and Marine. Energy had good growth in metal and chemicals in 
Oceania and petrochemicals in Africa. Food & Water grew in brewery, 
dairy and protein. Marine had a good development in Australia and 
Africa from pumping systems. 
Personnel
The parent company does not have any employees.
The Group has on average had 17,160 (17,387) employees. At the 
end of December 2020, the Group had 16,882 (17,497) employees. 
The employee turnover rate excluding temporary employees for 2020 
is 7.5 (9.3) percent. The highest employee turnover rate in 2020 
is found in management & administration and in manufacturing, 
logistics & procurement.
Alfa Laval has the ambition to develop the employees on all levels 
within the Group. The largest part of the competence development 
takes place in the daily work when our employees continuously get 
more demanding tasks as well as get the opportunity to participate 
in different projects together with more experienced colleagues. Local 
training and development efforts in the different factories and sales 
companies around the world are equally important, for instance ALPS 
(Alfa Laval Production System) that is based on the well-known 
concepts of Lean and Six Sigma and also on ALPAS (Alfa Laval 
Product & Application School). The ALPAS trainings are designed 
and developed by the product responsible Business Unit.
Greenhouse Division
At the end of December 2019 all parts of the division had been di-
vested. In 2020 Greenhouse has thus ceased to exist. The historical 
figures are shown below.
Greenhouse Division
Consolidated
SEK millions
2019
Orders received
105
Order backlog*
0
Net sales
444
Operating income**
-30
Operating margin***
-6.8%
Depreciation and amortisation
8
Investments****
5
Assets*
39
Liabilities*
71
Number of employees*
33
* At the end of the period. ** In management accounts. *** Operating income 
in relation to net sales. **** Excluding new leases.
Operations & Other
Operations and Other covers procurement and logistics as well as 
corporate overhead and non-core businesses.
Operations & Other
Consolidated
SEK millions
2020
2019
Orders received
0
72
Order backlog*
0
0
Net sales
0
77
Operating income**
-629
-742
Depreciation and amortisation
339
309
Investments***
448
414
Assets*
1,276
1,613
Liabilities*
522
564
Number of employees*
1,069
987
* At the end of the period. ** In management accounts. *** Excluding new leases.
The improved operating income during 2020 is mainly due to the 
COVID-19 cost reduction program. 
The order intake and net sales 2019 for Operations and Other 
was relating to contract manufacturing of shell and tube heat ex-
changers for BITZER after the sale of the business to BITZER. 
* Base business and base orders refer to orders with an order value of less than EUR 0.5 million.

83
Board of Directors’ Report
-14%
-11%
-7%
+1%
+4%
+13%
-15%
Orders received 2020
1
2
3
4
5
6
7
-6%
+2%
+36%
-15%
-18%
-14%
-1%
Orders received 2019
1
2
3
4
5
6
7
1 Nordic 
9%
2 Western Europe 
21%
3 Central- & Eastern Europe 
8%
4 Asia 
37%
5 Latin America 
4%
6 North America 
19%
7 Africa & Oceania 
2%
1 Nordic 
9%
2 Western Europe 
21%
3 Central- & Eastern Europe 
7%
4 Asia 
40%
5 Latin America 
4%
6 North America 
17%
7 Africa & Oceania 
2%
= Compared to 2019 excluding currency effects
Compared to 2018 excluding currency effects

84
0
3,000
6,000
9,000
12,000
15,000
18,000
2019
2020
5,361
2,743
723
5,959
1,657
17,160
563
154
5,384
2,861
688
5,928
1,802
17,387
563
161
Nordic
North America
Western Europe
Latin America
Central & Eastern Europe
Other
Asia
Average number of employees – by region
Number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2020
Dec 31, 2019
0
3,000
6,000
9,000
12,000
15,000
18,000
3,220
1,729
1,945
9,910
683
10
3,150
1,722
1,955
9,354
693
8
Manufacturing, logistics & procurement
Management & Administration
Sales & marketing
R&D
Service
Acquired during  the year
Employees – by category
Number
0
500
1,000
1,500
2,000
2,500
3,000
2018
2019
2020
2015
2016
2017
390
321
340
2,273
2,059
2,138
400
459
2,423
2,675
421
2,417
Adjusted EBITA/average number of employees
Employees – Productivity development
SEK
thousands
Net sales/average number of employees
All training programmes and development projects are performed 
within the Alfa Laval Academy framework, to ensure they follow the 
Alfa Laval Learning Principles. Further examples of such training 
programmes are Challenger (for young talents with international 
leadership potential), Impact (for women in the middle of the career), 
Project Management, Information Security (mandatory training via 
E-learning) and Pure Leadership (for middle management). 
Alfa Laval has a  global certiﬁcation in “Learning Facilitation 
Capabilities” called “Licence to Train” to secure quality and con-
sistency in the way we deliver our learning programmes internally 
as well as towards customers and partners.
Alfa Laval is working to achieve equal career opportunities inde-
pendent of for instance gender or ethnic origin. The latter is not the 
least important in an international company. Likewise, the number of 
female managers shall increase in order to better reﬂect the females’ 
part of the total number of employees. To facilitate this, a mentor 
programme has started for women with capacity to become  
future leaders.
The distribution of the number of employees by region is:
The distribution of the number of employees by personnel category 
at year end is:
The productivity by employee has developed as follows: 
The outcome for 2015 was affected by the weakening of the Swedish 
krona and the acquisition of Frank Mohn. The outcome for 2016 was 
affected by the receding demand, mitigated by the continued 
weakening of the Swedish krona. The improvement for 2017 is en-
tirely explained by the change programme that was launched during 
the autumn 2016. This also affects the outcome for 2018 and 2019 
but reinforced by the stronger demand within primarily environmental 
products and the weakening of the Swedish krona. The deterioration 
during 2020 is explained by the consequences of the COVID-19 
pandemic and the stronger Swedish krona.
The distribution of employees per country and per municipality in 
Sweden and between males and females can be found in Note 5 
in the notes to the ﬁnancial statements. The speciﬁcation of salaries, 
wages, remunerations, social costs and pension costs are provided 
in Note 6 in the notes to the ﬁnancial statements.
Remuneration policy for executive ofﬁcers
The remuneration policy for executive officers is established by the 
Annual General Meeting, see further description in Note 6 and the 
complete policy in Note 37.
The Board of Directors decided in 2020 to implement step three 
of the modiﬁed cash based long-term incentive programme for 
maximum 95 senior managers in the Group including the Chief Ex-
ecutive Ofﬁcer and the persons deﬁned as executive ofﬁcers. The 
outcome of the modiﬁed programme depends on how the adjusted 
EBITA margin and the net sales growth have developed during a 
three-year period, with a 50/50 weight between the targets. This 
means that there will be no award during the ﬁrst two years since it 
is ﬁrst in year three that it can be determined to what extent the 
targets have been achieved. Maximum outcome is awarded when 
the targets are exceeded. The remuneration from the modiﬁed long-
term incentive programme can constitute maximum 25, 40 or 50 
percent of the ﬁxed remuneration depending on position. Payment 
to the participants in the programme is made after year three and 
only provided that they are still employed at the date of payment. 
Research and development
As the result of an intensive and consistent commitment over many 
years to research and development, Alfa Laval has achieved a world-
leading position within the areas of separation and heat transfer. The 
product development within fluid handling has resulted in a strong 
market position for a number of products. In order to strengthen the 
Group's position and to support the organic growth, by identifying 
new applications for existing products as well as developing new 
products, research and development is always an activity of high 
priority. Research and development is conducted at approximately 
twenty facilities around the world.
The costs for research and development have amounted to SEK 
1,039 (1,086) million, corresponding to 2.5 (2.3) percent of net sales. 
Excluding currency effects and acquisition/divestment of businesses, 
The personnel categories have been slightly redefined in 2020 so the 
comparison figures for 2019 have been changed correspondingly.

85
Board of Directors’ Report
the costs for research and development have decreased by 2.4 
percent compared to last year.
 
Ethics and social responsibility
Two of Alfa Laval’s four business principles are: ”Respect for human 
rights is fundamental” and ”High ethical standards guide our conduct”. 
This means that Alfa Laval respects human rights and the very dif-
ferent social cultures in which the company works and supplies its 
products and services and that Alfa Laval conducts its business 
with honesty, integrity and respect for others.
Globalisation gives Alfa Laval new business opportunities for in-
creased sales as well as lower costs for manufacturing the products. 
But when part of the supply chain is moved to countries with lower 
costs the company is often confronted with ethical questions in a 
more obvious manner. Health, security and working conditions for 
the employees at the company’s suppliers are some of Alfa Laval’s 
main topics. When Alfa Laval procures products from quickly growing 
economies like China and India it is important for the company to 
secure that the cost reduction opportunities are not at the expense 
of those performing the work in each country. Alfa Laval regards it 
as an obligation to make sure that its suppliers develop quickly if 
the work, health and security conditions are not acceptable.
 
Alfa Laval has developed an internal training programme to 
give salespeople and purchase departments knowledge on legal 
business practice.
Environment
One of Alfa Laval’s four business principles is: ”Optimizing the use 
of natural resources in the most efficient manner is our business.” 
The company’s products make a significant contribution to reducing 
the environmental impact of industrial processes and are used to 
produce renewable energy. 
All sites have an environmental management system in place. 
More than 95 percent of the delivery value comes from production 
sites with ISO 14001 certiﬁcation.
The subsidiary Alfa Laval Corporate AB is involved in operational 
activities that are subject to an obligation to report and compulsory 
licensing according to Swedish environmental legislation. The permits 
mainly relate to the manufacturing of heat exchangers in Lund and 
Ronneby and the manufacturing of separators in Tumba and Eskilstuna. 
The external environment is affected through limited discharges 
into the air and water, through waste and noise.
The foreign manufacturing sites within the Alfa Laval Group are 
engaged in operational activities with a similar effect on the external 
environment. To what extent this activity is subject to an obligation to 
report and/or compulsory licensing according to local environmental 
legislation varies from country to country. Alfa Laval has an overall 
intention to operate well within the limits that are set by local legislation.
Consequences of COVID-19
Alfa Laval has implemented a broad cost reduction program with the 
objective of reducing fixed costs with SEK 1 billion on a 12-month 
running basis. The program is well on track and the first financial 
effects became visible as of April. An important part of the cost re-
duction program is related to the flexibility of various working hour 
reduction schemes in countries like Italy, Germany, France and Sweden. 
In Sweden specifically, the company has reduced the working time 
with 40 percent for approximately 800 white-collar employees, be-
tween May and August. The received support for reduced working 
hours in Sweden has however not been reported in the P&L but has 
instead been balanced due to the uncertainty around the conditions 
for the support. See Note 38 for further information.
The Board of Directors withdrew the dividend proposal for 2019 
as a measure to preserve cash.
In a press release on March 17, Alfa Laval expressed concerns 
regarding the business climate from the second quarter 2020 and 
onwards due to the negative effects of the COVID-19 pandemic. 
Alfa Laval has global and local crisis teams in place for close 
monitoring and swift response to changes in the situation to secure 
the health and safety of our employees.
Alfa Laval has a global footprint with 39 major manufacturing 
units across Europe, Asia, the US and Latin America. The company 
is a supplier to critical infrastructure industries and has permission 
to continue production in countries with restrictions and lockdowns. 
The company has well-established business continuity plans and a 
global supply chain with alternative sourcing solutions for most 
products and services and close collaboration with key suppliers. 
Sourcing shortages for components due to lockdowns have not 
been a critical problem during the year.
Asbestos-related lawsuits
The Alfa Laval Group was as of December 31, 2020, named as a 
co-defendant in a total of 623 asbestos-related lawsuits with a total 
of approximately 623 plaintiffs. Alfa Laval strongly believes the claims 
against the Group are without merit and intends to vigorously contest 
each lawsuit. 
Based on current information and Alfa Laval’s understanding of 
these lawsuits, Alfa Laval continues to believe that these lawsuits 
will not have a material adverse effect on the Group’s ﬁnancial con-
dition or results of operation.
Result for the parent company
The parent company's result after financial items for the full year 2020 
was SEK 404 (604) million, out of which dividends from subsidiaries 
SEK 413 (633) million, net interests SEK -0 (0) million, realised and 
unrealised exchange rate gains and losses SEK -0 (1) million, costs 
related to the listing SEK -4 (-4) million, fees to the Board SEK -8 (-8) 
million, cost for annual report and annual general meeting SEK -2 (-2) 
million and other operating income and operating costs the remaining 
SEK 5 (-16) million. Change of tax allocation reserve has been 
made with SEK 205 (-293) million. Group contributions amount to 
SEK 79 (2,142) million. Tax on this year’s result amount to SEK -64 
(-395) million. Net income for the year was SEK 624 (2,058) million.
Unrestricted equity for the parent company
The unrestricted equity of Alfa Laval AB (publ) was SEK 10,518 
(9,893) million.
Proposed disposition of earnings
The Board of Directors propose a dividend of SEK 5.50 (-) per share 
corresponding to SEK 2,307 (-) million and that the remaining in-
come available for distribution in Alfa Laval AB (publ) of SEK 8,211 
(9,893) million be carried forward, see Note 40. 
The Board of Directors are of the opinion that the proposed dividend 
is in line with the requirements that the type and size of operations, 
the associated risks, the capital needs, liquidity and ﬁnancial position 
put on the company.
Proposed share buy-back program
The Board of Directors will also propose the Annual General Meeting 
to mandate the Board to decide on repurchase of up to 5 percent 
of the issued shares with the purpose to cancel the repurchased 
shares and reduce the share capital. The reduction of the share 
capital will be met by a corresponding bonus issue without issuing 
any new shares so that the size of the share capital is restored.
Disclosure on share related information 
Paragraph 2a in chapter 6 of the Swedish Annual Accounts Act re-
quires listed companies to disclose certain information relating to 
the company’s shares in the Board of Directors’ Report. This infor-
mation is found in the following paragraphs, in the “Changes in 
consolidated equity” and in Note 6.
Outlook for the ﬁrst quarter 
In the fourth quarter and full year 2020 report issued on February 3, 
2021 the President and Chief Executive Officer Tom Erixon stated: 
“We expect demand in the first quarter to be about the same as in 
the fourth quarter.” 
Earlier published outlook (October 22, 2020): “We expect demand in the 
fourth quarter to be somewhat higher than in the third quarter.” 
Date for the next ﬁnancial reports 2021
Alfa Laval will publish ﬁnancial reports at the following dates:
Interim report for the first quarter 
April 27
Interim report for the second quarter     
July 20
Interim report for the third quarter  
October 26

86
Consolidated cash flows
Consolidated cash flows
 
 
 
SEK millions
Note
2020
2019
Operating activities
 
Operating income
5,580
7,198
Adjustment for depreciation, amortisation and write down
2,349
2,053
Adjustment for other non-cash items
397
141
8,326
9,392
Taxes paid
-1,537
-1,901
6,789
7,491
Changes in working capital:
 
      Increase(-)/decrease(+) of receivables
1,409
-1,394
      Increase(-)/decrease(+) of inventories
126
-617
      Increase(+)/decrease(-) of liabilities
-580
-84
      Increase(+)/decrease(-) of provisions
-21
-173
Increase(-)/decrease(+) in working capital
934
-2,268
 
7,723
5,223
Investing activities
 
Investments in fixed assets (Capex)
-1,232
-1,337
Divestment of fixed assets
119
7
Acquisition of businesses
17
-70
-61
Divestment of businesses
125
364
-1,058
-1,027
Financing activities
 
Received interests and dividends
76
120
Paid interests
-260
-281
Realised financial exchange gains
92
239
Realised financial exchange losses
-524
-499
Dividends to owners of the parent
–
-2,097
Dividends to non-controlling interests
0
0
Increase(-) of financial assets
-3,460
-283
Decrease(+) of financial assets
0
0
Increase of loans
2,000
3,155
Amortisation of loans
-4,841
-3,299
-6,917
-2,945
 
Cash flow for the year
-252
1,251
Cash and cash equivalents at the beginning of the year
5,594
4,295
Translation difference in cash and cash equivalents
-192
48
Cash and cash equivalents at the end of the year
26
5,150
5,594
 
Free cash flow per share (SEK) *
15.89
10.00
Capex in relation to net sales
3.0%
2.9%
Average number of shares
 
419,456,315
419,456,315
*  Free cash ﬂow is the sum of cash ﬂows from operating and investing activities.

87
Financial statements
Comments to the consolidated cash flows
For further comments on certain individual 
lines in the cash flow statement, reference 
is made to Notes 17 and 26.
Cash ﬂows from operating activities
The increase in cash flows from operating 
activities in 2020 is explained by:
 
+  a large decrease in working capital and 
 
+  lower tax payments linked to the 
lower taxable income,
 
-  mitigated by lower operating income 
before depreciation and amortisation.
Cash and cash equivalents
The item cash and cash equivalents is mainly 
relating to bank deposits and liquid deposits.
Cash ﬂow
Cash flow from operating and investing ac-
tivities amounted to SEK 6,665 (4,196) million 
during 2020. Out of this, acquisitions of 
businesses were SEK -70 (-61) million 
whereas divestments generated cash of 
SEK 125 (364) million.
Adjustment for other non-cash items
Other non-cash items are mainly referring 
to realised gains and losses in connection 
with sale of assets. These have to be elimi-
nated since the cash impact of divestments 
of fixed assets and businesses are reported 
separately under cash flow from investing 
activities. 
Working capital
Working capital decreased by SEK 934 million 
during 2020. During 2019 it instead increased 
by SEK 2,268. 
Investments
Investments in property, plant and equipment 
amounted to SEK 1,232 (1,337) million 
during 2020. 
A number of structural changes within the 
continued Footprint programme in the form 
of new or improved buildings including move 
of production and productivity increasing 
investments for improved cost and availa-
bility have been completed during the year, 
among others in Pune in India, Kolding in 
Denmark and an entire new production facility 
for brazed heat exchangers in San Bonifacio 
in Italy. Examples of investments made for 
the individual product groups are as follows:
Heat exchangers
Investments have been made in machines 
for increased capacity and manufacturing of 
new products and in productivity enhancing 
equipment in San Bonifacio in Italy and Jiang 
Yin in China for brazed heat exchangers. 
Additional investments have been made in 
Jiang Yin in China and in Lund in Sweden 
in equipment to widen the product range 
and increase the productivity for gasketed 
heat exchangers.
High speed separators
Continued capacity investments in machining 
equipment for separators have been made 
in Eskilstuna in Sweden and in Pune in India.
Decanters
Capacity and productivity enhancing invest-
ments have been made in Pune in India.
Pumps and valves
Capacity and productivity enhancing invest-
ments have been made in Kolding in 
Denmark.
Depreciations
Depreciation, excluding allocated step-up 
values, amounted to SEK 1,134 (1,073) 
million during the year.
Acquisitions and disposals
For a further analysis of the impact on the 
cash flow by acquisitions and disposals, 
see Note 17.
Free cash ﬂow per share
The free cash flow per share is SEK 15.89 
(10.00).

88
Consolidated comprehensive income
Consolidated comprehensive income
SEK millions
Note
2020
2019
Net sales
1, 2, 3, 4, 36
41,468
46,517
Cost of goods sold
9
-27,210
-30,734
Gross profit
 
14,258
15,783
Sales costs
5, 6, 9
-4,125
-4,802
Administration costs
5, 6, 7, 9
-1,834
-2,092
Research and development costs
9
-1,039
-1,086
Other operating income
8
819
1,174
Other operating costs
8, 9
-2,521
-1,799
Share of result in joint ventures
34
22
20
Operating income
 
5,580
7,198
Dividends and other financial income and costs
10
26
32
Interest income and financial exchange rate gains
11
220
377
Interest expense and financial exchange rate losses
11
-849
-386
Result after financial items
 
4,977
7,221
Tax on this year's result
16
-1,372
-1,676
Other taxes
16
-25
-37
Net income for the year
 
3,580
5,508
Other comprehensive income:
 
Items that will subsequently be reclassified to net income
 
Cash flow hedges
744
307
Market valuation of external shares
-125
0
Translation difference
-2,454
632
Deferred tax on other comprehensive income
16
-76
-75
Sum
 
-1,911
864
Items that will subsequently not be reclassified to net income
 
Revaluations of defined benefit obligations
-432
-138
Deferred tax on other comprehensive income
16
87
11
Sum
 
-345
-127
Comprehensive income for the year
 
1,324
6,245
Net income attributable to:
 
Owners of the parent
3,553
5,486
Non-controlling interests
27
22
Earnings per share (SEK)
8.47
13.08
Average number of shares
 
419,456,315
419,456,315
Comprehensive income attributable to:
 
Owners of the parent
1,308
6,220
Non-controlling interests
 
16
25

89
Comments to the consolidated  
comprehensive income
The gross profit has been affected negatively 
by a lower sales volume and negative cur-
rency effects and positively by the mix be-
tween service and capital sales. 
Sales and administration expenses 
amounted to SEK 5,959 (6,894) million, 
which corresponded to 14.4 (14.8) percent 
of net sales. Excluding currency effects 
and acquisition/divestment of businesses, 
sales and administration expenses were 
10.4 percent lower than last year.
The costs for research and development 
have amounted to SEK 1,039 (1,086) million, 
corresponding to 2.5 (2.3) percent of net 
sales. Excluding currency effects and ac-
quisition/divestment of businesses, the costs 
for research and development have decreased 
by 2.4 percent compared to last year.
Earnings per share was SEK 8.47 (13.08) for 
2020. The corresponding figure excluding 
amortisation of step-up values and the 
corresponding tax, was SEK 10.12 (14.96).
Compared with last year Alfa Laval has 
been affected during 2020 by exchange 
rate differences, both through translation 
differences and through the net exposure 
when trading in foreign currencies. The ef-
fect on adjusted EBITA has been calculated 
to totally about SEK 180 (430) million for 
2020 compared with last year. The effect 
of the exchange rate variations has been 
limited through exchange rate hedging and 
through the distribution of the company's 
ﬁnancial debts in relation to its net assets in 
different currencies.
For comments on the individual lines in the consolidated comprehensive income state-
ment, reference is made to Notes 1 to 16 and Notes 34, 36 and 38. For comments on the 
operating segments, see Note 1.
As a basis for comments on the various main items of the consolidated comprehensive in-
come statement, please ﬁnd a comparison between the last two years:
Income analysis
Consolidated
SEK millions
2020
2019
Net sales
41,468
46,517
Adjusted gross profit *
15,113
16,763
- adjusted gross margin (%) *
36.4
36.0
Expenses **
-6,748
-7,701
- in % of net sales
16.3
16.6
Adjusted EBITDA *
8,365
9,062
- adjusted EBITDA margin (%) *
20.2
19.5
Depreciation
-1,134
-1,073
Adjusted EBITA *
7,231
7,989
- adjusted EBITA margin (%) *
17.4
17.2
Amortisation of step-up values
-855
-980
Comparison distortion items
-796
189
Operating income
5,580
7,198
* Alternative performance measures. ** Excluding comparison distortion items.  
Financial statements

90
0
3
6
9
12
15
Q420
Q320
Q220
Q120
Q419
Q319
Q219
Q119
Q418
Q318
Q218
Q118
32
34
36
38
40
42
Net sales & Adjusted gross margin
 
 
BnSEK
%
Net sales
Adjusted gross margin in %
0.0
0.5
1.0
1.5
2.0
2.5
Q420
Q320
Q220
Q120
Q419
Q319
Q219
Q119
Q418
Q318
Q218
Q118
14
15
16
17
18
19
Adjusted EBITA
 
 
Adjusted EBITA
Adjusted EBITA margin in %
BnSEK
%
The realized loss in 2020 is relating to the 
divestment of the operations in DSO Fluid 
Handling Inc in the U.S. 
The write down of goodwill and the re-
structuring costs are part of the programme 
for adapting the organisation to changing 
market fundamentals that was announced 
on December 16, 2020. The program is 
mainly addressing structural imbalances in 
speciﬁc parts of the oil & gas business as 
well as parts of the Marine business. In 
addition, the program will further drive the 
competence shift required in light of the 
accelerated pace of digitalization. The write 
down of goodwill concerns oil & gas related 
businesses. The total restructuring cost is 
expected to amount to approximately 
SEK 850 million, out of which the remaining 
part is expected to be charged in the second 
quarter of 2021. Approximately 600 em-
ployees mainly in Europe and North America 
will be affected by the program. The program 
will generate annual savings of around SEK 
300 million, with full effect expected from 
mid-2022.
The realised gain in 2019 was related to 
the divestments of part of the air heat ex-
changer business related to commercial/in-
dustrial air heat exchangers in the Green-
house division to the LU-VE Group. The 
realised loss in 2019 was relating to a real-
ised loss from the divestments of the last 
remaining Greenhouse operation shell-and-
tube Sarasota, also known as Alfa Laval 
Champ, to Thermal Solutions Manufacturing.
Consolidated ﬁnancial net and taxes
The financial net for 2020 was SEK -191 
(-172) million, excluding realised and un-
realised exchange rate losses and gains. 
The main elements of costs were interest 
on the debt to the banking syndicate of 
SEK -5 (-3) million, interest on the bilateral 
term loans of SEK -34 (-48) million, interest 
on the corporate bonds of SEK -82 (-86) 
million and a net of dividends, changes in 
fair value and other interest income and in-
terest costs of SEK -70 (-35) million. 
The net of realised and unrealised exchange 
rate differences was SEK -412 (195) million. 
The tax on the result after ﬁnancial items 
was SEK -1,397 (-1,713) million in 2020. 
Comparison distortion items
Consolidated
SEK millions
2020
2019
Other operating income
 
Comparison distortion items:
 
-  Realised gain on sale of businesses
 –
260
Other operating costs
 
Comparison distortion items:
 
- Realised loss on sale of businesses
-55
-71
- Write down of goodwill
-360
 –
- Restructuring costs
-381
 –
Net comparison distortion items
-796
189
In order to illustrate the quarterly development, the last 12 quarters are shown below for  
four of the parameters in the income analysis:

91
Accumulated translation differences *
Consolidated
SEK millions
Year
Main explanation to translation differences
Change
Accumulated
Pre-tax
effect on
change by
hedging measures
Formation of the Group
2000
The EUR was appreciated by 6 %, which 
affected the EUR based acquisition loans
-94
-94
-312
2001
The USD was appreciated by 10.7 %
97
3
-105
2002
The USD was depreciated by 16.7 %
-190
-187
165
2003
The USD was depreciated by 17.5 %
-38
-225
195
2004
The USD was depreciated by 9.0 %
-103
-328
-19
2005
The USD was appreciated by 20.3 % 
and the EUR was appreciated by 4.8 %
264
-64
-65
2006
The USD was depreciated by 13.5 % 
and the EUR was depreciated by 4.0 %
-269
-333
56
2007
The USD was depreciated by 5.7 % 
whereas the EUR was appreciated by 4.7 % 
224
-109
13
2008
The USD was appreciated by 20.5 % 
and the EUR was appreciated by 16.2 %
850
744
-468
2009
The USD was depreciated by 7.5 % 
and the EUR was depreciated by 6.0 %
-392
352
220
2010
The USD was depreciated by 5.7 % 
and the EUR was depreciated by 12.9 %
-554
-202
99
2011
The USD was appreciated by 1.4 % 
whereas the EUR was depreciated by 0.8 %
-254
-456
34
2012
The USD was depreciated by 5.8 % 
and the EUR was depreciated by 3.6 %
-798
-1,254
214
2013
The USD was appreciated by 0.3 % 
and the EUR was appreciated by 4.1 %
39
-1,215
-83
2014
The USD was appreciated by 20.5 % 
and the EUR was appreciated by 6.3 %
439
-776
-1,033
2015
The USD was appreciated by 6.6 % 
whereas the EUR was depreciated by 4.0 %
-1,056
-1,832
301
2016
The USD was appreciated by 8.6 % 
and the EUR was appreciated by 4.6 %
1,882
50
-643
2017
The USD was depreciated by 9.4 % 
and the EUR was appreciated by 2.8 %
-1,339
-1,289
-207
2018
The USD was appreciated by 8.8 % 
and the EUR was appreciated by 4.2 %
641
-648
-571
2019
The USD was appreciated by 4.2 % 
and the EUR was appreciated by 2.1 %
632
-16
-288
2020
The USD was depreciated by 12.2 % 
and the EUR was depreciated by 3.7 %
-2,454
-2,470
313
* Reported against other comprehensive income. Prior to 2009 these translation differences were reported against equity.
Financial statements

92
Consolidated financial position
Consolidated financial position
ASSETS
SEK millions
Note
2020
2019
Non-current assets
 
Intangible assets
17, 18
 
Patents and unpatented know-how
776
1,104
Trademarks
1,301
1,954
Licenses, renting rights and similar rights
20
23
Internally generated intangible assets
107
53
Goodwill
19,080
21,112
21,284
24,246
Property, plant and equipment
17, 19
 
Real estate
2,878
2,948
Machinery and other technical installations
2,229
2,137
Equipment, tools and installations
801
670
Construction in progress and advances to suppliers 
concerning property, plant and equipment
261
505
Right-of-use assets
2,152
2,683
8,321
8,943
Other non-current assets
 
Other long-term securities
13, 14, 20
1,575
141
Pension assets
27
70
70
Derivative assets
13, 14, 15
196
69
Deferred tax assets
16
1,792
1,801
3,633
2,081
 
Total non-current assets
33,238
35,270
 
Current assets
 
Inventories
21
9,223
10,077
 
Assets held for sale
19
55
–
 
Current receivables
 
Accounts receivable
13, 22, 36
5,834
7,460
Current tax assets
521
459
Other receivables
13, 23
3,213
4,019
Prepaid costs and accrued income
13, 24
419
451
Derivative assets
13, 14, 15
589
193
10,576
12,582
Current deposits
 
Other current deposits
13, 25
2,618
873
 
Cash and cash equivalents
13, 26
5,150
5,594
 
Total current assets
27,622
29,126
 
TOTAL ASSETS
 
60,860
64,396

93
Consolidated financial position, continued
EQUITY AND LIABILITIES
SEK millions
Note
2020
2019
Equity
 
Attributable to owners of the parent
 
Share capital
1,117
1,117
Other contributed capital
2,770
2,770
Other reserves
-3,803
-1,558
Retained earnings
28,824
25,271
28,908
27,600
 
Attributable to non-controlling interests
12
163
147
 
 
Total equity
29,071
27,747
 
Non-current liabilities
 
Liabilities to credit institutions etc
13, 29
8,043
10,600
Lease liabilities
13, 35
1,573
1,890
Provisions for pensions and similar commitments
27
2,494
2,321
Provision for deferred tax
16
1,553
1,662
Other provisions
28
681
639
Derivative liabilities
13, 14, 15
5
42
 
Total non-current liabilities
14,349
17,154
 
Current liabilities
 
Other current liabilities
 
Liabilities to credit institutions etc
13, 29
1,125
1,422
Advances from customers
4,381
4,269
Accounts payable
13
2,526
3,311
Notes payable
13
232
128
Current tax liabilities
919
947
Lease liabilities
13, 35
662
730
Other liabilities
13, 30
3,577
4,219
Other provisions
28
1,757
1,863
Accrued costs and prepaid income
13, 31
2,153
2,298
Derivative liabilities
13, 14, 15
108
308
17,440
19,495
 
Total current liabilities
17,440
19,495
 
Total liabilities
31,789
36,649
 
TOTAL EQUITY AND LIABILITIES
 
60,860
64,396
Financial statements

94
Changes in consolidated equity
Comments on the consolidated financial position
For comments on the individual lines in the 
statement on financial position, reference is 
made to Notes 12 to 36. For comments on 
the operating segments, see Note 1.
Capital employed
The average capital employed including 
goodwill and step-up values amounted to 
SEK 33,678 (35,550) million during the year.
Return on capital employed
The return on average capital employed in-
cluding goodwill and step-up values amounted 
to 19.1 (23.0) percent during the year.
Capital turnover rate
The capital turnover rate calculated on the 
average capital employed including goodwill 
and step-up values amounted to 1.2 (1.3) 
times for the year.
Return on equity
Net income in relation to the average equity 
was 12.7 (21.3) percent during the year. 
Solidity
The solidity, that is the equity in relation to 
total assets, was 47.8 (43.1) percent at the 
end of the year.
Changes in consolidated equity
Attributable to:
Owners of the parent
Non-controlling interests
Total
Other reserves
 
 
SEK millions
Share 
capital
Other contrib-
uted capital
Cash flow
hedges
Market valuation
of external shares
Translation
differences
Revaluations
Retained 
earnings
Subtotal
Translation
differences
Retained 
earnings
Subtotal
 
 
As of December 31, 2018
1,117
2,770
-333
2
-705
-1,256
21,882
23,477
15
107
122
23,599
2019
 
 
Comprehensive income
 
 
Net income
 –
 –
 –
 –
 –
 –
5,486
5,486
 –
22
22
5,508
Other comprehensive income
 –
 –
238
0
623
-127
 –
734
3
 –
3
737
Comprehensive income
 –
 –
238
0
623
-127
5,486
6,220
3
22
25
6,245
Transactions with shareholders
 
 
Dividends to owners of the parent
 –
 –
 –
 –
 –
 –
-2,097
-2,097
 –
 –
 –
-2 097
Dividends to non-controlling interests
 –
 –
 –
 –
 –
 –
 –
 –
 –
0
0
0
As of December 31, 2019
1,117
2,770
-95
2
-82
-1,383
25,271
27,600
18
129
147
27,747
2020
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 –
 –
 –
 –
 –
–
3,553
3,553
–
27
27
3,580
Other comprehensive income
 –
 –
590
-125
-2,365
-345
–
-2,245
-11
–
-11
-2,256
Comprehensive income
 –
 –
590
-125
-2,365
-345
3,553
1,308
-11
27
16
1,324
Transactions with shareholders
 
 
 
 
 
 
 
 
 
 
 
 
Dividends to owners of the parent
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
 –
Dividends to non-controlling interests
 –
 –
 –
 –
 –
 –
 –
 –
 –
0
0
0
As of December 31, 2020
1,117
2,770
495
-123
-2,447
-1,728
28,824
28,908
7
156
163
29,071
Net debt
The net debt was SEK 3,635 (8,175) million 
at the end of the year. 
Net debt to EBITDA
Net debt in relation to EBITDA was 0.48 
(0.88) times at the end of December.  
Debt ratio
The debt ratio, that is the net debt in relation 
to equity, was 0.13 (0.29) times at the end 
of December.

95
Specification of changes in number of shares and share capital
 
 
Year
Event
Date
Change in  
number of shares
Total  number 
of shares
Change in 
share capital 
SEK millions
Total  
share capital 
SEK millions
2000
Company formation
March 27, 2000
10,000,000
10,000,000
0.1
0.1
 
New issue of shares
August 24, 2000
27,496,325
37,496,325
0.3
0.4
2002
Bonus issue of shares
May 3, 2002
37,496,325
74,992,650
0.4
1
Bonus issue of shares
May 16, 2002
–
–
749
750
New issue of shares
May 16, 2002
3,712,310
78,704,960
37
787
 
New issue of shares
May 17, 2002
32,967,033
111,671,993
330
1,117
2008
Cancellation of repurchased shares
May 27, 2008
-4,323,639
107,348,354
-43
Bonus issue of shares
May 27, 2008
 –
107,348,354
43
1,117
 
Split 4:1
June 10, 2008
322,045,062
429,393,416
 –
1,117
2009
Cancellation of repurchased shares
July 9, 2009
-7,353,950
422,039,466
-19
 
Bonus issue of shares
July 9, 2009
 –
422,039,466
19
1,117
2011
Cancellation of repurchased shares
May 16, 2011
-2,583,151
419,456,315
-7
 
Bonus issue of shares
May 16, 2011
 –
419,456,315
7
1,117
 
Comments on changes in consolidated equity
The articles of association of Alfa Laval AB 
(publ) state that the share capital should be 
between SEK 745,000,000 and 
2,980,000,000 and that the number of 
shares should be between 298,000,000 
and 1,192,000,000. 
At January 1, 2020 the share capital of 
SEK 1,116,719,930 was divided into 
419,456,315 shares. Since then no changes 
have been made. 
The company has only issued one type 
of shares and all these have equal rights. 
There are no restrictions in law or in the ar-
ticles of association in the negotiability of 
the shares. 
The only shareholder holding more than 
10 percent of the shares is Tetra Laval 
International SA, Switzerland, who owns 
29.1 (29.1) percent. The employees of the 
company do not own any shares in the 
company through company pension trusts. 
No restrictions exist in how many votes 
that each shareholder can represent at a 
general meeting of shareholders. The com-
pany has no knowledge of any agreements 
between shareholders that would limit the 
negotiability of their shares. 
The articles of association stipulate that 
members of the Board are elected at the 
Annual General Meeting. Election or dis-
charge of members of the Board is other-
wise regulated by the provisions in the 
Swedish Companies Act and the Swedish 
Corporate Governance Code. According to 
the Companies Act changes in the articles 
of association are decided at general meet-
ings of shareholders. 
The senior credit facility with the banking 
syndicate, the corporate bonds and the bi-
lateral term loan with Swedish Export Credit 
contain conditions that give the lenders the 
opportunity to terminate the loans and de-
clare them due and payable if there is a 
change of control of the company through 
an acquisition of more than 30 percent of 
the total number of shares. 
The possibilities to distribute unappropriated 
profits from foreign subsidiaries are limited 
in certain countries due to local legislation. 
These limitations are not material. The limi-
tations relate to:
–  the existence of general restrictions con-
cerning restricted equity in many countries,
–  that subsidiaries in for instance China and 
India cannot take up loans to pay dividends, 
which limits the size of the dividends and
–  rules on interest deduction limitations and 
thin capitalisation in many countries, for 
instance the U.S., Denmark and Norway 
limit the possibilities for these countries 
to increase debt to pay dividends.
Financial statements

96
Parent company cash flows
Parent company cash flows
 
 
SEK millions
2020
2019
Cash flow from operating activities
 
Operating income
-9
-30
 
Taxes paid
-71
-461
-80
-491
Changes in working capital:
 
      Increase(-)/decrease(+) of receivables
-2,470
-863
      Increase(+)/decrease(-) of liabilities
-5
8
Increase(-)/decrease(+) in working capital
-2,475
-855
 
 
-2,555
-1,346
Cash flow from investing activities
 
Investment in subsidiaries
 –
–
–
–
Cash flow from financing activities
 
Received interests
0
0
Received dividends from subsidiaries
413
633
Paid dividends
 –
-2,097
Received group contribution
2,142
2,825
Paid group contribution
0
-15
2,555
1,346
 
Cash flow for the year
 –
 –
Cash and cash equivalents at the beginning of the year
 –
 –
Cash and cash equivalents at the end of the year
 –
 –
Parent company income
Parent company income *
 
 
 
SEK millions
Note
2020
2019
Administration costs
-14
-14
Other operating income
5
0
Other operating costs
0
-16
Operating income
 
-9
-30
Dividends from subsidiaries
413
633
Interest income and similar result items
11
0
1
Interest expenses and similar result items
11
0
0
Result after financial items
 
404
604
Change of tax allocation reserve
205
-293
Group contributions
79
2,142
Result before tax
 
688
2,453
Tax on this year's result
-64
-395
Net income for the year
 
624
2,058
* The parent company income statement also constitutes its comprehensive income statement.

97
Parent company financial position
Parent company financial position
 
 
 
SEK millions
Note
2020
2019
ASSETS
 
Non-current assets
 
Financial non-current assets
 
Shares in group companies
20
4,669
4,669
Current assets
 
Current receivables
 
Receivables on group companies
10,704
10,292
Other receivables
3
4
10,707
10,296
Cash and cash equivalents
–
–
Total current assets
10,707
10,296
 
TOTAL ASSETS
 
15,376
14,965
EQUITY AND LIABILITIES
 
Equity
 
Restricted equity
 
Share capital
1,117
1,117
Statutory reserve
1,270
1,270
2,387
2,387
Unrestricted equity
 
Profit brought forward
9,893
7,835
Net income for the year
624
2,058
10,518
9,893
 
 
Total equity
12,905
12,280
 
Untaxed reserves
 
Tax allocation reserve, taxation 2015
 –
304
Tax allocation reserve, taxation 2016
68
68
Tax allocation reserve, taxation 2017
578
578
Tax allocation reserve, taxation 2018
391
391
Tax allocation reserve, taxation 2019
698
698
Tax allocation reserve, taxation 2020
613
613
Tax allocation reserve, taxation 2021
99
 –
2,447
2,652
Current liabilities
 
Liabilities to group companies
15
20
Accounts payable
3
1
Current tax liabilities
3
10
Other liabilities
3
2
24
33
 
TOTAL EQUITY AND LIABILITIES
 
15,376
14,965
Financial statements

98
Changes in parent company equity
Changes in parent company equity
 
 
SEK millions
Share capital
Statutory reserve
Unrestricted  equity
Total
As of December 31, 2018
1,117
1,270
9,932
12,319
2019
Comprehensive income
Net income
 –
 –
2,058
2,058
 –
 –
2,058
2,058
Transactions with shareholders
Dividends
 –
 –
-2,097
-2,097
As of December 31, 2019
1,117
1,270
9,893
12,280
2020
 
 
 
 
Comprehensive income
 
 
 
 
Net income
 –
 –
624
624
 –
 –
624
624
Transactions with shareholders
 
 
 
 
Dividends
 –
 –
–
–
As of December 31, 2020
1,117
1,270
10,518
12,905
The share capital of SEK 1,116,719,930 (1,116,719,930) is divided among 419,456,315 (419,456,315) shares.

99
Accounting principles
Notes to the financial statements 
Accounting principles
The accounting principles mentioned below 
are only the ones that are relevant for the 
parent company and the consolidated group.
Basis of preparation
The consolidated financial statements have 
been prepared on a historical cost basis, 
except for certain financial instruments in-
cluding derivatives that are valued at fair 
value. The statements are presented in 
SEK millions, unless otherwise stated.
Statement of compliance
Alfa Laval applies International Financial 
Reporting Standards (IFRS) as adopted by 
the European Union. Furthermore, recom-
mendation RFR 1 ”Supplementary accounting 
principles for consolidated groups” from the 
Council for Financial Reporting in Sweden 
is applied. Alfa Laval follows the Guidelines 
on Alternative Performance Measures issued 
by ESMA (European Securities and 
Markets Authority).
The accounting and valuation principles 
of the parent company comply with the 
Swedish Annual Accounts Act and the rec-
ommendation RFR 2 ”Accounting for legal 
entities” issued by the Council for Financial 
Reporting in Sweden.
Changed/implemented accounting 
principles
The company has chosen to only comment 
the changed accounting principles that are 
relevant for the company’s financial reporting.
During 2019 IFRS 16 was implemented. 
IFRS 16 ”Leases” covers the recognition, 
measurement, presentation and disclosure 
of leases by both lessors and lessees. 
IFRS 16 replaced IAS 17 ”Leases”.
For lessees the former classiﬁcation in 
operational and ﬁnancial leases disappeared 
and was replaced by a model where assets 
and liabilities for all leasing contracts must be 
recognised in the balance sheet. For leasing 
contracts where the contract period is maxi-
mum 12 months or the leased asset is of low 
value, there is an option to apply a practical 
expedient, which Alfa Laval decided to use.
With reference to the materiality rules in 
IAS 8.8, Alfa Laval chose to apply the new 
rules for leases concerning buildings and 
land, company cars and other vehicles, 
forklifts, large servers and large printers. The 
present value for other leases is estimated 
to be non-material.
For lessors the rules in IAS 17 are basically 
kept why a classiﬁcation into operational 
and ﬁnancial leases like the former should 
be done also going forward.
Lease contracts can include both a leas-
ing part and a service part. According to 
IFRS 16, the company in these cases can 
choose to separate them from each other 
and thus only recognise the leasing part in 
the balance sheet or capitalise the entire 
contract. The choice impacts by which 
amount the balance sheet will increase in 
the end. Alfa Laval has chosen to exclude 
the service part from the new leasing ac-
counting and it is instead expensed as before.
Alfa Laval applied the standard retro-
spectively with the cumulative effect of the 
initial application recognised as an adjust-
ment to the opening balance of right-of-use 
assets and lease liabilities at January 1, 
2019, where the right-of-use assets were 
reported at the same amount as the re-
lated lease liabilities. In connection with the 
transition a practical expedient was applied 
that means that the new leasing deﬁnition 
is only applied on new lease contracts in-
stead of on all leasing contracts.  
Right-of use assets and lease liabilities 
increased by SEK 2,766 million as per 
January 1, 2019 due to the initial application 
of IFRS 16 Leases.
IFRS 16 means that the amount of dis-
closures concerning leases has increased.
During 2019 IFRIC 23 was implemented. 
IFRIC 23 “Uncertainty over Income Tax 
Treatments” clariﬁes how to treat uncertain 
tax positions and meant no change in the 
company’s treatment of this.
Alternative Performance Measures
In the annual report, alternative performance 
measures are used. See page 158 for defi-
nitions. Alfa Laval follows the Guidelines on 
Alternative Performance Measures issued 
by ESMA (European Securities and 
Markets Authority).
Critical accounting principles
IFRS 3 ”Business Combinations” means 
that goodwill and intangible assets with in-
definite useful life are not amortised. They 
are instead tested for impairment both an-
nually and when there is an indication. The 
effect of IFRS 3 can be considerable for the 
Group if the profitability within the Group or 
parts of the Group goes down in the future, 
since this could trigger a substantial impair-
ment write down of the goodwill according 
to IAS 36 “Impairment of Assets”. Such a 
write down will affect net income and 
thereby the financial position of the Group. 
The reported goodwill is SEK 19,080 
(21,112) million at the end of the year. No 
intangible assets with indefinite useful life 
other than goodwill exist.
The Group has deﬁned beneﬁt plans, 
which are reported according to IAS 19 
”Employee Beneﬁts”. This means that the 
plan assets are valued at fair value and that 
the present value of the beneﬁt obligations 
in the deﬁned beneﬁt plans is decided 
through yearly actuarial calculations made 
by independent actuaries. If the value of 
the plan assets starts to decrease at the 
same time as the actuarial assumptions in-
crease the beneﬁt obligations the combined 
effect could result in a substantial deﬁcit. 
The monetary magnitude comes from the 
fact that the deﬁcit is the difference between 
two large numbers. The effect on proﬁt and 
loss however only affects other compre-
hensive income and not net income. The 
risk has been limited since many of these 
deﬁned beneﬁt schemes are closed for 
new participants and replaced by deﬁned 
contribution schemes. 
The Group's reporting of provisions ac-
cording to IAS 37 means that SEK 2,438 
(2,502) million is reported as other provisions. 
This constitutes 4.0 (3.9) percent of the 
Group's assets and is important for the 
assessment of the Group's ﬁnancial position, 
not the least since provisions normally are 
based on judgements of probability and 
estimates of costs and risks. If the accounting 
principles for provision would be changed 
sometime in the future, this could have a 
substantial impact on the Group's ﬁnancial 
position.
Key sources of estimation uncertainty
The key source of estimation uncertainty is 
related to the impairment test of goodwill, 
since the testing is based on certain assump-
tions concerning future cash flows. See the 
section on critical accounting principles 
above for further details.
Judgements
In applying the accounting policies Manage-
ment has made various judgements, apart 
from those involving estimations, that can

100
significantly affect the amounts recognised 
in the financial statements. These judgements 
mainly relate to:
–  probability in connection with business 
risks;
–  the probable outcome of claims;
–  the probable outcome of litigations;
–  determination of percentage of completion 
in contracts with customers recognised 
over time;
–  recoverability of accounts receivable;
–  obsolescence in inventory; and
–  classification of financial instruments.  
Associates
The Group does not own shares in any 
material companies that fulfil the definition 
of an associate in IAS 28 ”Investments in 
Associates”, that is where the ownership is 
between 20 and 50 percent.
Borrowing costs
Borrowing costs are accounted for accord-
ing to IAS 23 ”Borrowing Costs”, which 
means that the borrowing costs are 
charged to the profit and loss in the period 
to which they relate. 
Transaction costs that arise in connec-
tion with raising a loan are capitalised and 
amortised over the maturity of the loan. 
The capitalised amount is reported net 
against the raised loan.
Business combinations – consolidation 
principles 
The consolidated financial statements have 
been prepared according to IFRS 3 
”Business Combinations” and IFRS 10 
”Consolidated financial statements”.
An entity shall be consolidated if a deci-
sive inﬂuence is present. Control (decisive 
inﬂuence) is present when Alfa Laval has:
–  power over the investee, which is described 
as having rights to direct the activities that 
significantly affect the investee’s returns;
–  exposure or rights to variable returns 
from the involvement in the investee; and
–  the ability to use its power over the inves-
tee to affect the amount of the investor’s 
returns. 
A decisive influence does not need to arise 
purely through ownership of shares (voting 
rights). An investor can have a decisive in-
fluence over another entity without holding 
the majority of the shares. An entity must 
be consolidated until the day the control 
ceases, even if the control is present only 
during a limited period.
The consolidated ﬁnancial statements in-
clude the parent company Alfa Laval AB 
(publ) and the subsidiaries in which it has a 
decisive inﬂuence.
The statement on consolidated ﬁnancial 
position has been prepared in accordance 
with the purchase method, which means 
that the book value of shares in the subsid-
iaries is eliminated from the reported equity 
in the subsidiaries at the time of their ac-
quisition. This means that the equity in the 
subsidiaries at the time of acquisition is not 
included in the consolidated equity. 
The difference between the purchase 
price paid and the net assets of the acquired 
companies is allocated to the step-up values 
related to each type of asset, with any re-
mainder accounted for as goodwill.
During the ﬁrst 12 months after the ac-
quisition the value of the goodwill is often 
preliminary. The reason to this is that expe-
rience has shown that there is some uncer-
tainty linked to the different components of 
the purchase price allocation concerning: 
–  primarily the calculation of the allocation 
to different intangible step-up values, that 
are dependent on different judgemental 
questions and estimations;
–  the calculation of tangible step-up values, 
that are dependent on external market 
valuations, which can extend in time be-
fore they can be finalised;
–  adjustments of the purchase price con-
tingent on contractual terms, that are de-
pendent on the final size of the operating 
capital at the acquisition date, once this 
has been audited and the outcome has 
been approved by the parties; and
–  the final value of the acquired equity, 
which is also dependent on the audit of 
the acquired closing balance sheet. 
Since the goodwill is a residual that emerg-
es once all other parameters in the pur-
chase price allocation have been estab-
lished, it will be preliminary and open for 
changes until all other values are final.
At acquisitions where there is a goodwill 
it should be stated what the goodwill is re-
lating to. Since goodwill by deﬁnition is a 
residual this is not always that easy. Gener-
ally speaking, the goodwill is usually relat-
ing to estimated synergies in procurement, 
logistics and corporate overheads. It can 
also be claimed that the goodwill is relating 
to the acquired entity’s ability to over time 
recreate its intangible assets. Since the 
value of the intangible assets at the time of 
acquisition only can be calculated on the 
assets that exist then, no value can be at-
tached to the patents etc. that the opera-
tions manage to create in the future par-
tially as a replacement for the current ones 
and these are therefore referred to goodwill. 
Goodwill and intangible assets with in-
deﬁnite useful life are not amortised. These 
assets are instead tested for impairment both 
annually and when there is an indication. 
The impairment test is made according to 
IAS 36 “Impairment on assets”.
Transaction costs are reported in net in-
come. If the value of an additional purchase 
price is changed the change is reported in 
net income. In business combinations 
achieved in stages the goodwill is calculated 
and valued when the acquirer obtains control 
over a business. If the acquirer previously 
has reported an equity interest in the com-
pany the accumulated change in value of 
the holding is recognised in net income at 
the acquisition date. Changes in holdings 
in subsidiaries, where the majority owner 
does not lose its decisive inﬂuence, are re-
ported in equity. This means that these 
transactions no longer will generate goodwill 
or lead to any gains or losses. In addition, the 
transaction will result in a transfer between 
owners of the parent and non-controlling 
interests in equity. If the non-controlling in-
terest’s share of reported losses is higher 
than its reported share of the equity, a neg-
ative non-controlling interest is reported.
Comparison distortion items
Items that do not have any link to the normal 
operations of the Group or that are of a 
non-recurring nature are classified as com-
parison distortion items. In the consolidated 
comprehensive income statement these 
are reported gross as a part of the most 
concerned lines but are specified separately 
in Note 8. To report these together with other 
items in the consolidated comprehensive 
income statement without this separate 
reporting in a note would have given a 
comparison distortion effect that would 
have made it difficult to judge the develop-
ment of the ordinary operations for an out-
side viewer. Comparison distortion items 
affecting operating income are reported as a 
part of operating income, while comparison 
distortion items affecting the result after fi-
nancial items are reported as a part of the 
financial net. 
Comprehensive income
Alfa Laval has chosen to report the items in 
other comprehensive income as a part of 
one statement over comprehensive income 
instead of reporting the result down to net 
income for the year in one statement and 
the result below this down to comprehensive 
income in a separate statement. 
Other comprehensive income is referring 
to items that are not transactions with share-
holders and relates to for instance cash 
ﬂow hedges, market valuation of external 
shares, translation differences and revalua-
tions and deferred tax related to these.

101
Accounting principles
Disclosures of interest in other entities
Information about interests in subsidiaries, 
associates, joint arrangements and uncon-
solidated structured entities must be disclosed 
in accordance with IFRS 12 ”Disclosures of 
interest in other entities”. The purpose with 
these disclosures is to enable the users of 
the financial reports to understand:
–  the composition of the group;
–  the effect of the interests on the financial 
statements; and
–  any risks with the current interests.
Substantial qualitative and quantitative dis-
closures must be made of each interest. 
The disclosure requirements include the 
following:
–  Financial information regarding subsidiaries 
with a considerable part of non-controlling 
interests.
–  Disclosures on the judgments and esti-
mation that have been made in judging 
whether an entity shall be consolidated 
or not and if an associate shall be ac-
counted for or whether a joint arrange-
ment is considered to be joint operation 
or a joint venture.
–  Financial disclosures on interests in ma-
terial associates and joint arrangements.
Disclosures relating to the company’s 
shares
Paragraph 2a in chapter 6 of the Swedish 
Annual Accounts Act requires listed com-
panies to disclose certain information relat-
ing to the company’s shares in the Board 
of Directors’ Report. This information is 
found at the end of the Board of Directors’ 
Report, in the “Changes in consolidated 
equity” and in Note 6.
Employee beneﬁts
Employee benefits are reported according 
to IAS 19 ”Employee Benefits”.
The present value of the beneﬁt obliga-
tions in the deﬁned beneﬁt plans is decided 
through yearly actuarial calculations made 
by independent actuaries. The plan assets 
are valued at fair value. The net plan asset 
or liability is arrived at in the following way. 
+ 
 the present value of the defined benefit 
obligation at December 31
- 
 the fair value of the plan assets at 
December 31
= 
 a net liability if positive / a net asset if 
negative
If the calculation per plan gives a negative 
amount, thus resulting in an asset, the 
amount to be recognised as an asset for 
this particular plan is the lower of the two 
following figures:
–  The above net negative amount.
–  The present value of any economic ben-
efits available in the form of refunds from 
the plan or reductions in future contribu-
tions to the plan. This is referred to as the 
asset ceiling.
The items that relate to the vesting of defined 
benefit pensions and gains and losses that 
arise when settling a pension liability and the 
financial net concerning the defined benefit 
plan are reported in the income statement 
above net income. Past service costs are 
recognised in the income statement already 
when the plan is amended or curtailed.
Actuarial gains and losses are accounted 
for currently in other comprehensive income. 
Changes in the obligations that relate to 
changes in actuarial assumptions are ac-
counted for in other comprehensive income. 
None of these actuarial items will ever be 
reported in operating income but will instead 
remain in other comprehensive income.
The return on plan assets is calculated 
with the same interest rate as the discount 
rate. The difference between the actual re-
turn on plan assets and the interest income 
in the previous sentence is reported in 
other comprehensive income.
The plan assets are speciﬁed on different 
types of assets.
Sensitivity analysis must be made concern-
ing reasonable changes in all assumptions 
made when calculating the pension liability. 
The difference between short and long-
term remunerations focuses on when the 
commitment is expected to be settled 
rather than the link to the employee’s vest-
ing of the commitment.
Termination beneﬁts are accounted for at 
the earliest of the following - the time when 
the beneﬁt offer cannot be withdrawn, alter-
natively in accordance with IAS 37 as a part 
of for instance restructuring the operations.
For Swedish entities the actuarial calcu-
lations also include future payments of 
special salary tax. The Swedish tax on re-
turns from pension funds is reported cur-
rently as a cost in the proﬁt and loss and 
are not included in the actuarial calculation 
for deﬁned beneﬁt pension plans. 
The discount rate used to calculate the 
obligations is determined based on the 
market yields in each country at the closing 
date on high quality corporate bonds with 
a term that is consistent with the estimated 
term of the obligations. In countries that lack 
a deep market in such bonds the country’s 
government bonds are used instead.
The costs for deﬁned contribution plans 
are reported in Note 6.  
The Swedish ITP plan is a multi-employer 
plan insured by Alecta. It is a defined benefit 
plan, but since the plan assets and liabilities 
cannot be allocated on each employer it is 
reported as a defined contribution plan ac-
cording to item 30 in IAS 19. The construc-
tion of the plan does not enable Alecta to 
provide each employer with its share of the 
assets and liabilities or the information to 
be disclosed. The cost for the plan is re-
ported together with the costs for other 
defined contribution plans in Note 6. Alecta 
reported a collective consolidation level at 
December 31, 2020 of 148 (148) percent. 
The collective consolidation level is defined 
as the fair value of Alecta’s plan assets in 
percent of the insured pension commit-
ments calculated according to Alecta’s ac-
tuarial assumptions, which are not in ac-
cordance with IAS 19. Such a surplus can 
be distributed among the employers or the 
beneficiaries, but there is no agreement 
concerning this that enables the company 
to report a receivable on Alecta. 
Events after the closing date
Events after the closing date are reported 
according to IAS 10 and the Swedish 
Annual Accounts Act in the notes.
Fair value measurement
IFRS 13 ”Fair Value Measurement” describes 
how a fair value is established when such 
value is to be or may be used in accord-
ance with each IFRS standard. In accord-
ance with IFRS a fair value is defined as the 
price that would be received to sell an as-
set or paid to transfer a liability in an orderly 
transaction between market participants at 
the measurement date (i.e. an exit price). 
The standard presents elucidations on the 
fair value concept including the following areas:
–  Concepts such as ”highest and best use” 
and ”valuation premise” are described. 
These are only applicable on non-financial 
assets.
–  Market participants are assumed to act 
in a way that maximizes the value for all 
involved parties in situations where there 
is no guidance concerning the calculation 
of fair value in individual IFRS standards.
–  The effect of so-called block discounts 
(large position in relation to the market) 
may never be included in the calculation 
of fair value.
–  Deciding fair value when the market activity 
is falling.
 
Disclosures must be made to explain what 
valuation models that are used and what 
information that is used in these models 
and which effects the valuation has caused 
in the result.

102
Financial instruments
The reporting of financial instruments is 
governed by the following four accounting 
and financial reporting standards:
–  IFRS 9 ”Financial Instruments”;
–  IAS 32 “Financial Instruments: 
Presentation”; 
–  IFRS 7 “Financial Instruments: 
Disclosures”; and
–  IFRS 13 “Fair Value Measurement”.
IFRS 9 means that the company’s business 
model and the characteristics of the asset 
influence the classification and measure-
ment of financial assets. 
Debt instruments are all ﬁnancial instru-
ments except derivatives and shares. The 
company´s purpose with holding a debt in-
strument is called its business model. De-
pending on what business model a com-
pany is using for managing its debt 
instruments the accounting treatment is 
different. The following business models 
exist in IFRS 9:
–  Held to collect – the debt instrument is 
held to maturity to collect the contracted 
cash flows (interest and principal).
–  Trading – the company trades with the 
debt instruments.
–  Mixed model – a mix of the two above 
models.
Alfa Laval business model for managing its 
debt instruments is “Held to collect”. This 
classification does not mean that we occa-
sionally cannot sell debt instruments before 
maturity even for large amounts or that we 
regularly cannot sell many small debt in-
struments before maturity.
IFRS 9 means that ﬁnancial derivatives, 
holdings of bonds and external shares are 
adjusted to fair value. IFRS 7 contains ex-
panded disclosure requirements related to 
the signiﬁcance of ﬁnancial instruments for 
the company’s ﬁnancial position and per-
formance and the nature and extent of 
risks arising from ﬁnancial instruments.
IFRS 13 describes how a fair value is es-
tablished when such value is to be or may 
be used in accordance with each IFRS 
standard. Disclosures must be made to ex-
plain what valuation models that are used 
and what information that is used in these 
models and which effects the valuation has 
caused in the result.
Both IFRS 9 and IFRS 7 formally contain 
a considerable amount of information that 
should be presented. According to IFRS 
7.B3 the company however should decide 
how much detail it provides in order not to 
overburden the ﬁnancial statements with 
excessive details.  
Both financial assets and financial liabilities 
are classified into three different portfolios: 
–  Valued at fair value through profit or loss; 
–  Valued at fair value through other com-
prehensive income and 
–  Valued at amortised cost.
The classification into different portfolios re-
flects the valuation of the instruments, i.e. if 
the instrument is valued at fair value or am-
ortised cost and also where in the state-
ment of consolidated comprehensive income 
that the valuation to fair value is reported.
The amortised cost is normally equal to 
the amount recognised upon initial recogni-
tion, less any principal repayments and plus 
or minus any effective interest adjustments.
Prepaid costs, prepaid income and ad-
vances from customers are not deﬁned as 
ﬁnancial instruments since they will not re-
sult in future cash ﬂows.
Disclosures must be made on the methods 
and, when a valuation technique is used, 
the assumptions applied in determining the 
fair value of each class of ﬁnancial assets and 
liabilities. The methods are to be classiﬁed 
in a hierarchy of three levels:
 
1.  Quoted prices in active markets;
2.  Other inputs than quoted prices that are 
directly observable (prices) or indirectly 
observable (derived from prices); and
3.  Unobservable market data.
The fair values of holdings of bonds are ar-
rived at using market prices according to 
level 1. The effect of the measurement at 
fair value is reported in net income. The fair 
value adjustment of these instruments is 
reflected directly on the item bonds in the 
statement of financial position. 
The fair values of shares in external 
companies are arrived at using market 
prices according to level 1 or other inputs 
according to level 2. The effect of the 
measurement at fair value is reported in 
other comprehensive income. The fair 
value adjustment of these instruments is 
reﬂected directly on the item other long-term 
securities in the statement of ﬁnancial position. 
The fair values of the Group’s currency 
forward contracts, currency options, interest-
rate swaps, metal forward contracts and 
electricity futures are arrived at using market 
prices according to level 1. The fair value 
changes are arrived at by comparing the 
conditions of the derivative entered into 
with the market price for the same instrument 
at the closing date and with the same ma-
turity date. The effect of the measurement at 
fair value is reported in other comprehen-
sive income if the derivative constitutes an 
effective cash ﬂow hedge and otherwise on 
the concerned line above net income. The 
fair value adjustment of these instruments 
is reported as derivative assets or derivative 
liabilities in the statement of ﬁnancial position. 
For each class of ﬁnancial instruments 
disclosures shall be made on credit risk 
and an analysis of ﬁnancial assets that are 
past due or impaired. Within Alfa Laval credit 
risk is in reality mainly related to accounts 
receivable. The disclosures just mentioned 
are therefore to be found in Note 22. 
IFRS 9 has a model for expected credit 
losses. It is a three steps model that reﬂects 
changes in the credit risk. The steps are:
1.  Recorded at inception (normally an his-
torical experience-based percentage);
2.  For credit risks that have increased sig-
nificantly since initial recognition (the 
credit risk has increased significantly if 
the receivable is more than 30 days 
overdue; otherwise based on indications 
of the customer having payment difficul-
ties or financial weakness); and
3.  Related to objective evidence of impair-
ment (incurred losses).
The model results in a provision for bad 
debts. Only at a final loss the receivable is 
written off.
 
Government grants
Government grants are recognised in profit 
and loss over the same periods as the costs 
the grants are intended to compensate for. 
The grants are recognised in the income 
statement as a deduction of these costs.
Group contributions to and from the 
parent company
The parent company is accounting for 
group contributions according to the alter-
native rule in RFR 2 issued by the Council 
for Financial Reporting in Sweden. This 
means that both received and given group 
contributions are reported as appropria-
tions in the income statement.
Hedge accounting
Alfa Laval only applies two types of hedge 
accounting: cash flow hedges and hedges 
of net investments in foreign operations.
Cash ﬂow hedges
Alfa Laval has implemented documentation 
requirements to qualify for hedge account-
ing on derivative financial instruments.
The effect of the fair value adjustment of 
derivatives is reported as a part of other 
comprehensive income for the derivatives 
where hedge accounting is made (accord-
ing to the cash ﬂow hedging method) and 
above net income only when the under-
lying transaction has been realised. Hedge 
accounting requires the derivative to be

103
Accounting principles
appropriate and expected to be effective 
regarding the identiﬁed risks. 
For the derivatives where hedge accounting 
is not made the fair value valuation is reported 
above net income. The fair value adjustment 
of derivatives is reported separately from 
the underlying instrument as a separate 
item called derivative assets/derivative lia-
bilities in the statement of ﬁnancial position. 
Hedges of net investments in foreign 
operations
In order to finance acquisitions of foreign 
operations loans are raised, if possible, in 
the same currency as the net investment. 
The loans thereby constitute a hedge of 
the net investment in each currency. 
Exchange rate differences relating to these 
loans are therefore booked to other com-
prehensive income. 
Income Taxes
Income taxes are reported in accordance 
with IAS 12 ”Income Taxes”. 
Current tax is the amount of income taxes 
payable (recoverable) in respect of the tax-
able proﬁt (tax loss) for a period. Current 
tax liabilities (receivables) for the current and 
prior periods are measured at the amount 
expected to be paid to (recovered from) 
the tax authorities, using the tax rates (and 
tax laws) that have been enacted or sub-
stantively enacted by the closing date. In 
essence, this means that current tax is cal-
culated according to the rules that apply in 
the countries where the proﬁt was generated.
Deferred tax liabilities are the amounts of 
income taxes payable in future periods in 
respect of taxable temporary differences. 
Deferred tax liabilities are recognised for all 
taxable temporary differences, except for 
goodwill.
Deferred tax assets are the amounts of 
income taxes recoverable in future periods 
in respect of: (a) deductible temporary dif-
ferences; (b) the carry-forward of unused tax 
losses; and (c) the carry-forward of unused 
tax credits. Deferred tax assets are recog-
nised for all deductible temporary differ-
ences to the extent that it is probable (>50 
percent) that taxable proﬁt will be available 
against which the deductible temporary dif-
ference can be utilised. Deferred tax assets 
are recognised for the carry-forward of un-
used tax losses and unused tax credits to 
the extent that it is probable (>50 percent) 
that future taxable proﬁt will be available 
against which the unused tax losses and 
unused tax credits can be utilised.
Deferred tax assets and liabilities are 
measured at the tax rates that are expected 
to apply to the period when the asset is re-
alised or the liability is settled, based on tax 
rates (and tax laws) that have been enacted 
or substantively enacted by the closing date.
If it is not any longer probable that sufﬁcient 
taxable proﬁts will be available against which 
a deferred tax asset can be utilised, then the 
deferred tax asset is reduced accordingly.
Inventories
The Group's inventory has been accounted 
for after elimination of inter-company gains. 
The inventory has been valued according 
to the "First-In-First-Out" (FIFO) method at 
the lowest of cost or net realisable value, 
taking into account obsolescence.
This means that raw material and pur-
chased components normally are valued at 
the acquisition cost, unless the market price 
has fallen. Work in progress is valued at the 
sum of direct material and direct labour costs 
with a mark-up for the product's share in 
capital costs in the manufacturing and 
other indirect manufacturing costs based 
on a forecasted assumption on the capac-
ity utilisation in the factory. Finished goods 
are normally valued at the delivery value 
(i.e. at cost) from the factory if the delivery 
is forthcoming. Spare parts that can be in 
the inventory during longer periods of time 
are normally valued at net realisable value. 
Joint ventures
Joint ventures are consolidated according 
to IFRS 11 ”Joint arrangements”. Joint ar-
rangements are defined as a contractual 
arrangement where two or more parties 
have a joint decisive influence.
It is crucial to be able to judge whether a 
party has control over another party, that is 
decisive inﬂuence or if it rather is a sub-
stantial or common inﬂuence. If it is the lat-
ter, then it is a so-called joint arrangement, 
which could be either:
–  a joint operation; or 
–  a joint venture.
Jointly owned assets and joint activities are 
called joint operations. Each owner or party 
accounts for his share of assets, liabilities, 
revenues and costs.
Joint ventures are consolidated accord-
ing to the equity method. This means that 
the interest is accounted for on one line in 
the consolidated statement of ﬁnancial po-
sition and that the share of the result is ac-
counted for on one line in the consolidated 
statement of comprehensive income. It is 
the net income in the joint ventures that is 
booked into one line in the operating in-
come. The counter entry is an increase or 
decrease of the value of shares in joint ven-
tures. Received dividends reduce the value 
of the shares in joint ventures. The sales 
volume and other result items and the bal-
ance items in the joint ventures will no 
longer be reported in the statements over 
consolidated comprehensive income and 
consolidated ﬁnancial position in any of the 
two owner companies.
Leasing
Leasing is accounted for according to IFRS 
16 ”Leases”, which covers the recognition, 
measurement, presentation and disclosure 
of leases by both lessors and lessees.
In connection with the transition a practi-
cal expedient has been applied that means 
that the new leasing deﬁnition is only ap-
plied on new lease contracts instead of on 
all leasing contracts.  
Alfa Laval has decided to apply a practi-
cal expedient for leasing contracts where 
the contract period is maximum 12 months 
or the leased asset is of low value. With 
reference to the materiality rules in IAS 8.8, 
Alfa Laval has chosen to apply IFRS 16 for 
leases concerning buildings and land, 
company cars and other vehicles, forklifts, 
large servers and large printers. The pre-
sent value for other leases is estimated to 
be non-material. The leasing fees for these 
leases are expensed as incurred.
Lease contracts can include both a leasing 
part and a service part. According to IFRS 
16, the company in these cases can choose 
to separate them from each other and thus 
only recognise the leasing part in the bal-
ance sheet or capitalise the entire contract. 
Alfa Laval has chosen to exclude the service 
part from the lease accounting and it is in-
stead expensed as before.
When Alfa Laval is the lessee, leased 
assets are accounted for as right-of-use 
assets and a corresponding ﬁnancial payable 
to the lessor in the statement on ﬁnancial 
position. The leasing fee to the lessor is ac-
counted for as ﬁnancial cost calculated as 
interest on the outstanding payable and as 
amortisation of the payable. The right-of-
use asset is depreciated according to plan 
in the same manner as for purchased assets.
For lessors a classiﬁcation into opera-
tional and ﬁnancial leases is made exactly 
as under IAS 17. When Alfa Laval is the 
lessor, leased assets that are classiﬁed as 
ﬁnancial leases are accounted for as a ﬁ-
nancial receivable from the lessee in the 
statement on ﬁnancial position. The leasing 
fee received from the lessee is accounted 
for as ﬁnancial income calculated as inter-
est on the outstanding receivable and as 
amortisation of the receivable.
IFRS 16 contains a number of disclo-
sures requirements.
Levies
Levies relate to levies/taxes that govern-
mental or corresponding bodies are charg-
ing companies in accordance with laws or 
regulations with exception of income taxes, 
penalties and fines. IFRIC 21 ”Levies” is an 
interpretation that clarifies when a liability

104
for levies is to be accounted for. The obli-
gating event that gives rise to the reporting 
of a liability is the activity that triggers the 
payment of the levy. IFRIC 21 only treats 
the accounting for the liability side and not 
whether the debit side is a cost or an as-
set. One example of a levy is the Swedish 
real estate tax, which is levied on the own-
er of a property at January 1. At inception 
of the year the liability is booked and a cor-
responding prepaid cost, which is then 
phased as a cost over the year. 
Non-current assets (tangible and  
intangible)
Assets have been accounted for at cost, 
net after deduction of accumulated depre-
ciation according to plan. Depreciation ac-
cording to plan is based on the assets’ ac-
quisition values and is calculated according 
to the estimated useful life of the assets. 
The following useful lives have been used:
Tangible:
Computer programs, comput-
ers
3.3 years
Office equipment
4 years
Vehicles
5 years
Machinery and equipment
7–14 years
Land improvements
20 years
Buildings
25–33 years
Right-of-use assets
depends on 
the lease term
Intangible:
Patents and unpatented  
know-how
10–20 years
Trademarks
10–20 years
Licenses, renting rights and 
similar rights
10–20 years
Internally generated intangible 
assets
5 years
The depreciation is made according to the 
straight-line method.
Any additions to the purchase price in 
connection with investments in non-current 
assets or acquisitions of businesses are 
amortised over the same period as the 
original purchase price. This means that 
the time when the asset is fully depreciated 
is identical regardless of when payments 
are made. This is a reﬂection of the fact 
that the estimated useful life of the asset is 
the same.
Upon sale or scrapping of assets, the 
results are calculated in relation to the net 
book value after depreciation according to 
plan. The result on sales is included in op-
erating income.
Impairment of assets
When there are indications that the value of 
a tangible asset or an intangible asset with 
a definite useful life has decreased, there is 
a valuation made if it must be written down 
according to IAS 36 ”Impairment of Assets”. 
If the reported value is higher than the re-
coverable amount, a write down is made 
that burdens net income. When assets are 
up for sale, for instance items of real estate, 
a clear indication of the recoverable amount 
is received that can trigger a write down. 
Goodwill and intangible assets with in-
deﬁnite useful life are not amortised. These 
assets are instead tested for impairment 
both annually and when there is an indica-
tion. The impairment test is made accord-
ing to IAS 36 ”Impairment on assets”.
The recoverable amount for goodwill and 
intangible assets with indeﬁnite useful life is 
determined from the value in use based on 
discounted future cash ﬂows. For other as-
sets the recoverable amount is normally 
determined from the fair value less costs to 
sell based on an observable market price.
For the impairment testing of goodwill, 
three of Alfa Laval’s operating segments, 
the three business divisions “Energy”, 
“Food & Water” and ”Marine” have been 
identiﬁed as the cash-generating units 
within Alfa Laval. Technically a recently ac-
quired business activity could be followed 
independently during an initial period, but 
acquired businesses are normally inte-
grated into the divisions at a fast rate. This 
means that the independent traceability is 
lost fairly soon and then any independent 
measurement and testing becomes im-
practicable. The net present value is based 
on the projected EBITDA ﬁgures for the 
next ﬁve years, less projected investments 
and changes in operating capital during the 
same period and thereafter the perceived 
expected average industry growth rate. 
The used discount rate is the pre-tax 
weighted average cost of capital (WACC).
Non-current assets and disposal 
groups held for sale and discontinued 
operations
The Group is applying IFRS 5 ”Non-current 
Assets Held for Sale and Discontinued 
Operations”. IFRS 5 specifies the account-
ing for assets and disposal groups held for 
sale and the disclosures to be made for 
discontinued operations.
Assets and disposal groups held for sale 
are measured at the lower of carrying 
amount and fair value less costs to sell, ex-
cept for deferred tax items and deﬁned 
beneﬁt obligations. No depreciation of such 
assets is made. An asset or disposal group 
held for sale is an asset whose carrying 
amount will be recovered basically through 
a sale rather than through continuing use. 
It must be available for immediate sale in 
its current condition. The sale must be 
highly probable, that is a decision must 
have been made and an active sales effort 
must have been initiated. The sale must be 
expected to be ﬁnalised within one year. 
Non-current assets are reclassiﬁed to cur-
rent assets and presented separately in the 
statement on ﬁnancial position. All assets 
and liabilities relating to disposal groups 
are presented separately in the statement 
of ﬁnancial position.
Objectives, policies and processes for 
managing capital
IAS 1 ”Presentation of Financial Statements” 
paragraphs 134 and 135 contain disclosure 
requirements on the company’s objectives, 
policies and processes for managing capital. 
This information is disclosed in a separate 
section after the description of the ac-
counting principles.
Other operating income and other 
operating costs
Other operating income relates to for in-
stance commission, royalty and license in-
come. Other operating costs refer mainly 
to restructuring costs and royalty costs.
Comparison distortion items that affect 
the operating income are reported in other 
operating income and other operating costs.
Provisions
The Group is applying IAS 37 ”Provisions, 
Contingent Liabilities and Contingent Assets” 
for the reporting of provisions, contingent 
liabilities and contingent assets.
A provision is recognised when and only 
when:
–  there is a present legal or constructive 
obligation as a result of past events;
–  it is probable that a cost will be incurred 
in settling the obligation; and
–  a reliable estimate can be made of the 
amount of the obligation. 
The amount recognised as a provision is the 
best estimate of the cost required to settle 
the present obligation at the closing date.
In measuring the provision:
–  risks and uncertainties are taken into  
account;
–  the provisions are discounted, where the 
effect of the time value of money is material. 
When discounting is used, the increase 
of the provision over time is recognised 
as an interest cost;
–  future events, such as changes in law 
and technology, are taken into account 
where there is sufficient objective evidence 
that they will occur; and 
–  gains from the expected disposal of assets 
are not taken into account, even if the

105
Accounting principles
expected disposal is closely linked to the 
event giving rise to the provision.
If a reimbursement of some or all of the 
costs to settle a provision is expected (e.g. 
through insurance contracts, indemnity 
clauses or supplier’s warranties), the reim-
bursement is recognised:
–  when and only when, it is virtually certain 
that the reimbursement will be received if 
the obligation is settled. The amount rec-
ognised for the reimbursement must not 
exceed the amount of the provision; and
–  as a separate asset (gross). In the con-
solidated comprehensive income state-
ment, however, the income related to the 
reimbursement is netted against the cost 
for the provision. 
Provisions are reviewed at each closing 
date and adjusted to reflect the current 
best estimate. If it is no longer probable 
that a payment to settle the obligation will 
be incurred, the provision is reversed.
A provision must only be used for the 
purpose it was originally recognised for. 
Provisions are not recognised for future op-
erating losses. An expectation of future op-
erating losses is though an indication that 
certain assets of the operation may be im-
paired. If a contract is onerous, the present 
obligation under the contract is recognised 
and measured as a provision, once the as-
sets used in order to ﬁnalize the contract 
have been tested for impairment.
A provision for restructuring costs is rec-
ognised only when the general recognition 
criteria are met. A constructive obligation 
to restructure arises only when there is:
–  a detailed formal plan for the restructuring, 
identifying at least:
 
a)  the business or part of a business 
concerned;
 
b)  the principal locations affected;
 
c)  the location, function and approxi-
mate number of employees who will 
be compensated for terminating 
their services;
 
d)  the costs that will be undertaken; and
 
e)  when the plan will be implemented; and
–  a valid expectation in those affected that 
the restructuring will be carried out.
A management or board decision to re-
structure does not give rise to a construc-
tive obligation at the closing date unless 
the company has, before the closing date:
–  started to implement the restructuring 
plan; or
–  communicated the restructuring plan to 
those affected by it in a sufficiently spe-
cific manner to raise a valid expectation 
in them that the restructuring will happen.
When a restructuring involves the sale of 
an operation, no obligation arises for the 
sale until the company is committed to the 
sale, i.e. through a binding sales agreement.
A restructuring provision only includes the 
direct costs arising from the restructuring, 
which are those that are both:
–  necessarily entailed by the restructuring; 
and
–  not associated with the ongoing activities 
of the company.
Research and development
Research costs are charged to the result in 
the year in which they are incurred. 
Development costs are charged to the re-
sult in the year in which they are incurred 
provided that they do not fulfil the condi-
tions for instead being capitalised accord-
ing to IAS 38 ”Intangible Assets”.
Revenue recognition
Revenue from contracts with customers 
and revenues from leasing are reported as 
“Net sales” in the statement of consolidat-
ed comprehensive income. ”Net sales” are 
referring to sales value less sales taxes, 
cancellations and discounts. Contracts 
with customers relate to sale of goods, 
services and projects. 
IFRS 15 ”Revenue from Contracts with 
Customers” covers how revenue recognition 
on contracts with customers shall be made. 
Revenue recognition is based on ﬁve steps:
1.  Identify the contract with a customer.
2.  Identify the performance obligations in 
the contract.
3.  Determine the transaction price.
4.  Allocate the transaction price to the per-
formance obligations in the contract.
5.  Recognise revenue when the entity 
satisfies a performance obligation.
A performance obligation is a promise in a 
contract with a customer to transfer to the 
customer either:
–  a good or service (or a bundle of goods 
or services) that is distinct; or
–  a series of distinct goods or services that 
are substantially the same and that have the 
same pattern of transfer to the customer.
Two or more contracts entered into at or near 
the same time with the same customer are 
accounted for as a single contract if:
–  the contracts are negotiated as a pack-
age; and/or
–  the amount of consideration to be paid in 
the contracts are linked to each other; 
and/or 
–  the goods or services in the contracts are 
a single performance obligation.
A contract modification is treated as a sep-
arate contract if added products or services:
–  are distinct; and 
–  have a stand-alone selling price.
Alfa Laval shall recognise the revenue 
when the performance obligation has been 
satisfied by transferring control over a 
promised good or service to the customer.
Performance obligations can be satisﬁed 
either over time or at a point in time. 
Alfa Laval transfers control of a good or 
service over time and, therefore, satisﬁes a 
performance obligation and recognises 
revenue over time, if one of the following 
criteria is met:
–  the customer simultaneously receives 
and consumes the benefits provided by 
Alfa Laval's performance as Alfa Laval 
performs. This is normally the case for 
Alfa Laval’s service offerings;
–  Alfa Laval creates or enhances an asset 
that the customer controls as the asset is 
created or enhanced. This is normally the 
case when Alfa Laval performs the work 
at the customer’s premises, which mainly 
relates to installation/commissioning; or
–  Alfa Laval's performance does not create 
an asset with an alternative use to Alfa 
Laval and Alfa Laval has an enforceable 
right to payment for performance com-
pleted to date. 
Alternative use to Alfa Laval means if Alfa 
Laval can sell the equipment to another 
customer. The number of engineering hours 
spent by Alfa Laval on making a product or 
process solution customer specific with a 
unique configuration is a good indication of 
whether there is an alternative use to Alfa 
Laval or not. As a practical expedient, only 
orders of more than EUR 1 million and with 
more than 200 engineering hours are rec-
ognised over time.
In order to establish the performance over 
time an output or input method is used. In 
Alfa Laval output methods are more appli-
cable to service and component deliveries, 
whereas input methods are more applicable 
to projects and module sales. Depending 
on the nature of the project, the following 
methods are used:

106
Input methods:
–  The proportion that the project costs in-
curred for work performed to date bear 
to the estimated total project costs.
–  Surveys of work performed.
Considering the type of projects that Alfa 
Laval companies are involved in, the first 
method is usually the preferred.
Output methods:
–  Completion of a physical proportion of 
the performance obligations.
If a performance obligation is not satisfied 
over time it is satisfied at a point in time. To 
establish the point in time when the cus-
tomer obtains control of a promised asset 
and Alfa Laval satisfies a performance obli-
gation, the following control criteria must 
be considered:
–  Alfa Laval has a present right to payment 
for the asset.
–  The customer has legal title to the asset.
–  The customer has physical possession of 
the asset.
–  The customer has the significant risks 
and rewards of ownership of the asset. 
–  The customer has accepted the asset.
Alfa Laval uses a variety of delivery terms 
depending on the customers preference, 
including Ex Works. Alfa Laval’s preference 
is to use DAP (Delivered At Place) or DDP 
(Delivered Duty Paid) since these gives Alfa 
Laval better control that the customer really 
receives the goods in working order.
It is common that Alfa Laval provides a 
warranty in connection with the sale. The 
nature of the warranty can vary signiﬁcantly 
across contracts. Normally warranties pro-
vide a customer with assurance that the 
related product will function as the parties 
intended according to the agreed-upon 
speciﬁcations. This is an assurance-type 
warranty. Alfa Laval’s warranties normally 
cover a 12 months’ period and are ac-
counted for as a provision. 
IFRS 15 contains a number of disclosures 
requirements.
Operating segments
IFRS 8 means that the reporting of operating 
segments must be made according to how 
the chief operating decision maker monitors 
the operations, which may deviate from 
IFRS. Furthermore, information according 
to IFRS for the company as a whole must 
be given about products and services as 
well as geographical areas and information 
about major customers. 
The difference between the operating in-
come for the operating segments and the 
operating income according to IFRS for the 
company as a whole is explained by two 
reconciliation items.
Alfa Laval’s operating segments are the 
divisions. The chief operating decision maker 
within Alfa Laval is its Board of Directors.
 
Transactions in foreign currencies
Receivables and liabilities denominated in 
foreign currencies have been valued at 
year-end rates of exchange. 
Within the Group, exchange gains and 
losses on loans denominated in foreign 
currencies that ﬁnance acquisitions of for-
eign subsidiaries are transferred to other 
comprehensive income as foreign currency 
translation adjustments if the loans act as a 
hedge to the acquired net assets. There 
they offset the translation adjustments re-
sulting from the consolidation of the foreign 
subsidiaries. In the parent company, these 
exchange differences are reported above 
net income.
IAS 21 ”The Effects of Changes in For-
eign Exchange Rates” covers among other 
things the existence of functional curren-
cies. Almost all of Alfa Laval’s subsidiaries 
are affected by changes in foreign exchange 
rates for their procurement within the Group. 
They do however usually sell in their local 
currency and they have more or less all of 
their non-product related costs and their 
personnel related costs in their local cur-
rency. This means that none of Alfa Laval’s 
subsidiaries qualify for the use of another 
functional currency than the local currency, 
with the following exception. Subsidiaries 
in highly inﬂationary countries report their 
closings in the functional hard currency 
that is valid in each country, which in all 
cases is USD. During 2020 Venezuela is 
regarded as a highly inﬂationary country.
In the consolidation, the foreign subsidi-
aries have been translated using the cur-
rent method. This means that assets and 
liabilities are translated at closing exchange 
rates and income and expenses are trans-
lated at the year's average exchange rate. 
The translation difference that arises is a 
result of the fact that net assets in foreign 
companies are translated at one rate at the 
beginning of the year and another at year-
end and that the result is translated at av-
erage rate. The translation differences are 
part of other comprehensive income.
Recently issued accounting  
pronouncements
International Accounting Standards Board 
(IASB) has not issued any new or revised 
accounting pronouncements, which may 
be applicable on Alfa Laval and are effec-
tive for fiscal years beginning on or after 
January 1, 2021.
International Accounting Standards Board 
(IASB) has not issued any financial report-
ing interpretation developed by the 
International Financial Reporting 
Interpretations Committee (IFRIC), which 
may be applicable on Alfa Laval and are ef-
fective for fiscal years beginning on or after 
January 1, 2021.
Otherwise Alfa Laval will further evaluate 
the effects of the application of the new or 
revised accounting standards or interpreta-
tions before each time of application.

107
Objectives, policies and processes for  
managing capital
Alfa Laval defines its managed capital as the sum of consolidated net debt and equity including the part that is attributable to non-controlling 
interests. At the end of 2020 the managed capital was SEK 32,706 (35,922) million.
The Group’s objective when managing capital is to safeguard the Group’s ability to continue as a going concern and provide an adequate 
return for shareholders and beneﬁts for other stakeholders.
When managing the capital, the Group monitors several measures including:
Measure
Goal
Target 
 tandard
Target  
not set
Outcome
Average over last
2020
2019
3 years
5 years
8 years
Invoicing growth per year
≥5% *
-10.9%
14.4%
5.8%
0.9%
4.9%
Adjusted EBITA margin **
15% *
17.4%
17.2%
17.0%
16.5%
16.6%
Return on capital employed **
≥20%
19.1%
23.0%
21.5%
19.5%
20.7%
Net debt to EBITDA **
≤2.0
0.48
0.88
0.76
1.08
1.24
Cash flow from operating activities including 
investments in fixed assets ***
10%
15.7%
8.4%
10.8%
11.1%
10.2%
Investments ***
2.0%
3.0%
2.9%
3.2%
2.7%
2.3%
Return on equity
X
12.7%
21.3%
18.1%
16.0%
17.2%
Solidity
X
47.8%
43.1%
43.8%
41.7%
40.1%
Debt ratio **
X
0.13
0.29
0.24
0.32
0.41
Interest coverage ratio **
X
27.3
32.8
33.1
30.5
26.9
Credit rating
 
 
X
BBB+
BBB+
 
 
 
* Average over a business cycle. ** Alternative performance measures. *** In % of sales.
These measures are connected to each 
other as communicating vessels. This means 
that if actions are taken that primarily aim 
at a certain measure, they will also have an 
impact on other measures to a varying de-
gree. It is therefore important to consider 
the whole picture.
In order to maintain a good capital struc-
ture, the Group may for instance raise new 
loans or amortise on existing loans, adjust the 
amount of dividends paid to shareholders, 
return capital to shareholders, repurchase 
own shares, issue new shares or sell assets.
As examples on the Group’s active work 
with managing its capital the following can 
be mentioned:
–  Alfa Laval entered into a bilateral term loan 
facility agreement of SEK 2,000 million 
with SEB and Nordea on June 12, 2020. 
The loan was raised on June 23, 2020 
and maturing on December 12, 2021 but 
was repaid already on December 23, 2020.
–  A new senior credit facility of EUR 900 
million with an extended banking syndi-
cate from April 17, 2020.
–  Two tranches of corporate bonds totalling 
EUR 800 million were issued in September 
2014 and June 2019.
–  A commercial paper programme of nominally 
SEK 2,000 million with a duration of 1–12 
months was started in the spring 2014.
–  The bilateral term loan of EUR 100 million 
from Swedish Export Credit from June 2011.
–  The loan from the European Investment 
Bank of EUR 115 million maturing in June 
2021 that was repaid already at March 4, 
2020.
Accounting principles

108
Financial risks
Financial risks are referring to financial instruments.
Financial instruments
Alfa Laval has the following financial instruments: cash and cash equivalents, deposits, trade receivables, bank loans, trade payables and 
a limited number of derivative instruments to hedge primarily currency rates or interests, but also the price of metals and electricity. These 
include currency forward contracts, currency options, interest-rate swaps, metal forward contracts and electricity futures. See Notes 13 
and 14 for more information on these financial instruments.
Treasury policy
In order to control and limit the financial risks, the Board of the Group has established a treasury policy. The Group has an aversive attitude toward 
financial risks. This is expressed in the policy. It establishes the distribution of responsibility between the local companies and the central finance 
function in Alfa Laval Treasury International, what financial risks the Group can accept and how the risks should be limited.
Risk
Explanation
Mitigation
Financial risks
Price risk
There are three different types of price risks: currency risk, interest risk and 
market risk. See below.
Currency risk
Due to the Alfa Laval Group’s international business activities and geographical 
spread the Group is exposed to currency risks. The exchange rate move-
ments in the major currencies for the Group during the last years are pre-
sented below (SEK/foreign currency):
7
8
9
10
11
12
13
Exchange rate ﬂuctuations – UK pounds, Euro, US dollars
GBP
JAN 18
JUNE 18
DEC 18
JUNE 19
DEC 19
JUNE 20
DEC 20
JAN 18
JUNE 18
DEC 18
JUNE 19
DEC 19
JUNE 20
DEC 20
EUR
USD
0.90
1.00
1.10
1.20
1.30
1.40
1.50
Exchange rate ﬂuctuations – Danish and Norwegian kronor
DKK
NOK
0.070
0.075
0.080
0.085
0.090
0.095
Exchange rate ﬂuctuations – Japanese yen, Korean won
JPY
JPY
JAN 18
JUNE 18
DEC 18
JUNE 19
DEC 19
JUNE 20
DEC 20
KRW
KRW
0.0065
0.0070
0.0075
0.0080
0.0085
0.0090
Risks
Risks are divided into financial risks and operational risks, which are described below.
In order to handle and minimise the risks, Alfa Laval has established a comprehensive set of Group wide policies and an internal control 
framework. To support the work with internal control an extensive set of minimum internal controls has been established. 
During the year, managers and other key personnel have made a self assessment based on a selection of the most important minimum 
internal controls.
Internal control is monitored by both internal audit and by the external auditors.

109
Risks
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
Before derivatives
After derivatives
SEK
millions
 
Net transaction exposure per currency pair at December 31, 2020 
for the coming 12 months
EUR/USD
EUR/SEK
EUR/DKK
USD/NOK
EUR/JPY
JPY/NOK
EUR/CNY
Risk
Explanation
Mitigation
Currency risk is divided into transaction exposure and translation exposure.
Transaction  
exposure
Transaction exposure relates to currency risks that arise due to exchange 
rate fluctuations that affect the currency flows that are generated by the 
business activities. 
During 2020 Alfa Laval’s sales to countries outside Sweden amounted to 
97.6 (97.9) percent of total sales.
The Group's net transaction exposure at December 31, 2020 in the most 
important currencies before and after derivatives for the coming 12 months 
amounts to:
The positive bars are a reflection of:
–  subsidiaries in Sweden and Denmark exporting in EUR; 
– subsidiaries in Norway exporting mainly in USD but also in JPY; and 
– subsidiaries in China exporting in EUR.
The negative bars are a reflection of subsidiaries in the U.S. and Japan 
importing in EUR.
Currency contracts for projected flows are entered into continuously during 
the year. For contract-based exposures the derivatives follow the duration of 
the underlying contract. This means that the company experiences the effects 
from the market currency rate movements with a varying degree of delay.
If the currency rates between SEK and the most important foreign curren-
cies are changed by +/- 10 % it has the following effect on operating 
income, if no hedging measures are taken: 
Effect on operating income by exchange rate fluctuations excluding hedging 
measures
Consolidated
SEK millions
2020
2019
Exchange rate change  
against SEK
+ 10%
- 10%
+ 10%
- 10%
USD
478
-478
567
-567
EUR
221
-221
276
-276
CNY
99
-99
141
-141
NOK
-258
258
-269
269
DKK
-168
168
-200
200
JPY
27
-27
41
-41
Other
-52
52
-54
54
Total
347
-347
502
-502
Alfa Laval’s local sales companies normally sell 
in domestic currency to local end customers 
and have their local cost base in local currency. 
Exports from production and logistical centres 
to other Group companies are invoiced in the 
exporting companies’ domestic currencies, 
except for Sweden, Denmark and the UK 
where the exports are denominated in EUR.
The Group is principally exposed to currency 
risk from potential changes in contracted and 
projected flows of payments and receipts. The 
objective of foreign exchange risk management 
is to reduce the impact of foreign exchange 
movements on the Group’s income and 
financial position.
The Group normally has natural risk coverage 
through sales as well as costs in local curren-
cies. The treasury policy states that the local 
companies are responsible for identifying and 
hedging exchange rate exposures on all com-
mercial flows via Alfa Laval Treasury International. 
Transaction exposure from firm committed 
orders shall be hedged to 100 percent when 
the value of the net exposure exceeds EUR 
200,000. Furthermore, companies with yearly 
net exposure exceeding EUR 1,000,000 must 
hedge at least 50 percent of the next 12 months 
net exposure concerning all uncommitted flows 
and committed flows below EUR 200,000. 
The total hedge must never exceed 100 per-
cent. Longer hedging contracts of 13–24 
months for uncommitted exposures require 
special approval.
Alfa Laval Treasury International can add to or 
reduce the total hedging initiated by the local 
companies in the currencies that Alfa Laval 
has commercial exposure up to but not 
exceeding 100 percent and down to but not 
below 50 percent of the commercial exposure 
for each currency in a given time period.

110
Risk
Explanation
Mitigation
Outstanding currency forward contracts and currency options for the 
Group amounted to the following at the end of the year:
Outstanding currency forward contracts and currency options
Consolidated
Millions
2020
2019
 
Original 
 currency
SEK
Original 
 currency
SEK
Outflows:
 
 
USD
-752
-6,173
-761
-7,116
EUR
-287
-2,899
-532
-5,569
JPY
-5,165
-411
-7,193
-619
SGD
-7
-45
–
–
CAD
-5
-33
-9
-67
AUD
-4
-26
-
-
NZD
-3
-17
-3
-22
RON
–
–
-1
-1
Total
 
-9,604
 
-13,394
Inflows:
 
 
NOK
4,859
4,671
5,503
5,834
SEK
3,653
3,653
5,059
5,059
CNY
1,295
1,628
1,611
2,158
DKK
456
618
400
561
GBP
6
71
13
156
SGD
–
–
2
15
AUD
–
–
10
67
RUB
–
–
316
48
Total
 
10,641
 
13,898
Translation  
exposure
Translation exposure relates to the currency risks that arise due to the 
translation of the subsidiaries’ statements on financial position from local 
currency to SEK.
When the subsidiaries' statements of financial position in local currency are 
translated into SEK a translation difference arises that is due to the current 
year being translated at a different closing rate than last year and that the 
comprehensive income statement is translated at the average rate during 
the year whereas the statement of financial position is translated at the 
closing rate at December 31. The translation differences are reported 
against other comprehensive income. The translation exposure consists of 
the risk that the translation difference represents in terms of impact on 
comprehensive income. The risk is largest for the currencies where the 
Group has the largest net assets and where the exchange rate movements 
against SEK are largest. The Group’s net assets or liabilities for the major 
currencies are distributed as follows:
The assets and liabilities in EUR and DKK are seen together since the rate 
for DKK is fixed against the EUR.
The translation differences are a central 
responsibility and are managed by distributing 
the loans on different currencies based on the 
net assets in each currency and through cross 
currency swaps. Loans taken in the same cur-
rency as there are net assets in the Group, 
decrease these net assets and thereby 
decrease the translation exposure.
These hedges of net investments in foreign 
operations work in the following way. Exchange 
gains and losses on loans denominated in foreign 
currencies that finance acquisitions of foreign 
subsidiaries are reported as a part of other 
comprehensive income if the loans act as a 
hedge to the acquired net assets. In other 
comprehensive income they offset the transla-
tion adjustments resulting from the consolida-
tion of the foreign subsidiaries. In the Group, 
net exchange differences of SEK 313 (-288) 
million relating to debts in foreign currencies 
have been charged to other comprehensive 
income as hedges of net investments in foreign 
operations. The loans that hedge net invest-
ments in foreign operations are denominated 
in EUR and USD since these foreign curren-
cies have the largest impact on the statement 
of financial position. Since the Group uses part 
of its cash flows to amortise the loans in order 
to improve the financial net, the extent of this 
hedge tends to decrease over time. A change 
in the net assets of the foreign subsidiary over 
time can have the same effect.
-3,000
0
3,000
6,000
9,000
12,000
15,000
18,000
Net assets
Net liabilities
 
NOK
SEK
CNY
INR
EUR/DKK
JPY
PLN
BRL
HKD
KRW
CAD
Other
USD
SEK 
millions
Net assets and liabilities by currency

111
Risk
Explanation
Mitigation
Interest risk
By interest risk is meant how changes in the interest level affect the financial 
net of the Group and how the value of financial instruments vary due to 
changes in market interest rates.
At December 31, 2020, the total debt portfolio of SEK 9,168 (12,022) million 
was split on loans with fixed interest of SEK 8,040 (8,335) and loans with 
floating interest rates of SEK 1,128 (3,687) million.
The average interest and currency duration for all loans including derivatives 
was 26.1 (30.1) months at the end of 2020.
Calculated on an overall increase of market rates by 100 basis points (1 
percentage unit), the interest net of the Group would change according to 
the bar chart below. The reason why it is an income is that large parts of the 
cash and cash equivalents and the current deposits have floating interest rates. 
The Group attempts to manage the interest risk by: 
–  seeking a balance between floating and fixed 
interest rates in the debt portfolio and 
–  using derivative financial instruments such as 
interest rate swaps.
The high portion of loans with fixed interest rate 
at December 31, 2020 meant a low interest risk.
The treasury policy states that: 
–  the interest rate risk is measured separately for 
each main currency and for the total debt; and
–  the average interest duration for the total 
portfolio should be between 6 and 36 months.
The senior credit facility and the bilateral term loans 
accrue interest at floating rate. At the end of 2020 
the only remaining loan was accruing interest at 
0.43 %. The corresponding figure for 2019 was 
a range of 0.10 % – 2.73 %. The average interest 
rate at the end of 2020 was 0.43 (1.25) percent. 
The interest for the loan with floating interest rates 
was fixed at December 15, 2020 for the remaining 
term, which is the reason why no loans with 
floating interest rates were hedged to fixed interest 
rate at December 31, 2020. At December 31, 
2019, 16 percent of the loans with floating 
interest rate were hedged to fixed interest rate, 
with a duration of 3.0 months. The duration 
was shorter than 6 months both in 2020 and 
2019 due to the upcoming maturity of loans.
0
10
20
30
40
50
60
2020
2019
Hedging % 
of floating rates
56
20
0
5
10
15
20
25
30
SEK millions
%
Interest sensitivity analysis versus hedging % of ﬂoating rates
Effect on interest costs/income 
at 1% increase in market rates
Market risk
Market risk is defined as the risk for changes in the value of a financial 
instrument due to changed market prices. This applies only to financial 
instruments that are listed or otherwise traded, which for Alfa Laval concern 
bonds and other securities and other long-term securities totalling SEK 
2,941 (732) million.
The market risk for these is perceived as low. 
For other financial instruments, the price risk 
only consists of currency risk and interest risk.
Liquidity risk and 
refinancing risk
Liquidity risk is defined as the risk that the Group would incur increased 
costs due to lack of liquid funds. 
Refinancing risk is defined as the risk that the refinancing of maturing loans 
becomes difficult or costly.
In summary the maturity structure of the loans and the loan facilities is as 
follows: 
Alfa Laval Treasury International is responsible 
for ensuring that: 
–  the Group has a sufficient liquidity reserve, 
including cash & bank, short-term investments 
and unutilized committed credit facilities,
–  maximum 50 percent of the outstanding debt 
matures within the coming 12 month period and
–  the remaining average credit duration of the 
total debt portfolio exceeds 2 years. 
The loans of the Group are mainly long-term and 
only mature when the agreed loan period expires. 
Since the maturity of the loans is distributed over 
time the refinancing risk is reduced.
As of April 17, 2020, Alfa Laval has a new senior 
credit facility with an extended banking syndicate 
of EUR 900 million corresponding to SEK 9,077 
million at December 31, 2020. The facility was 
not utilised at December 31, 2020. It matures in 
June 2022. 
The commercial paper programme of SEK 2,000 
million was not utilised at December 31, 2020.
The corporate bonds are listed on the Irish stock 
exchange and consist of one tranche of EUR 500 
million that matures in September 2022 and one 
tranche of EUR 300 million that matures in June 
2024, corresponding to SEK 8,040 million in total.
Alfa Laval has a bilateral term loan with Swedish 
Export Credit of EUR 100 million that matures in 
June 2021, corresponding to SEK 1,008 million. 
The loan of USD 136 million that matured on 
June 23, 2020 has been repaid.
The bilateral term loan of SEK 2,000 million with 
SEB and Nordea maturing in December 2021 
was repaid already at December 23, 2020.
The loan from the European Investment Bank of 
EUR 115 million maturing in June 2021 was 
repaid already at March 4, 2020.
Corporate bonds
Swedish Export credit
Local Facilities 
Local Facilities 
Senior Facility
Corporate bonds
Non committed – Utilised
Committed
Committed & Utilised
Maturity year
SEK millions
Maturity structure of Group funding
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2023
2024
2022
2021
Risks

112
Operational risks
Risk
Explanation
Mitigation
Cash flow risk
Cash flow risk is defined as the risk that the 
size of future cash flows linked to financial 
instruments is fluctuating.
This risk is mostly linked to changed interest and currency rates. To the 
extent that this is perceived as a problem, different derivative instruments 
are used to fix rates. See description of exposure and hedging measures 
under interest and currency risks. Maturity analyses of the contractual 
undiscounted cash flows for loans (including interests) are shown in Note 
29 and for currency derivatives, interest derivatives, metal futures and elec-
tricity futures in Note 15.
Counterpart risk
Counterpart risk is defined as the risk that the 
counterpart is not able to fulfill its contractual 
obligations. 
Financial instruments that potentially subject the 
Group to significant concentrations of credit risk 
consist principally of cash and cash equivalents, 
deposits and derivatives.
The Group has a bank strategy with the objective to establish, maintain and 
develop strong bank relations at Group level. This in order to provide the 
Group with long-term banking support, a relevant product range and geo-
graphical coverage. The banks at Group level must have a credit rating 
from two rating institutions of minimum A.
The Group maintains cash and cash equivalents and current and non-current 
investments with various financial institutions approved by the Group. These 
financial institutions are located in major countries throughout the world and 
the Group’s policy is designed to limit exposures to any one institution. The 
risk for a counterpart not fulfilling its commitments is limited through the 
selection of financially solid counterparts and by limiting the engagement per 
counterpart. The Group performs periodic evaluations of the relative credit 
standing of those financial institutions that are considered in its investment 
strategy. The Group does not require collateral on these financial instruments.
The Group is exposed to credit risk in the event of non-performance by 
counterparts to derivative instruments. The Group limits this exposure by 
diversifying among counterparts with high credit ratings and by limiting the 
volume of transactions with each counterparty. Furthermore, the Group has 
entered into ISDA agreements (International Swaps and Derivatives 
Association) with the counterparts in order to be able to offset assets and 
liabilities in case of a counterparty default. Alfa Laval has never encountered 
a counterparty default, which means that such an offset never has been made. 
In total it is the Group's opinion that the counterpart risks are limited and 
that there is no concentration of risk in these financial instruments.
Risk
Explanation
Mitigation
Business risks
Credit risk/Risk  
for bad debts
The risk that the customer cannot pay for delivered goods due to financial 
difficulties. 
The amount of accounts receivable being overdue is an indication of the 
risk the company runs for ending up in a bad debt situation.
The Group's costs for bad debts and the overdues in percent of accounts 
receivable are presented in the following graph.
Alfa Laval has established a Group Credit Policy 
to manage and mitigate the credit risk.
The Group sells to a large number of customers 
in countries all over the world. That some of these 
customers from time to time face payment 
problems or go bankrupt is unfortunately part 
of reality in an operation of Alfa Laval's magni-
tude. All customers except Tetra Laval represent 
less than 1 percent of net sales and thereby 
represent a limited risk. Alfa Laval regularly 
collects credit information on new customers 
and, if needed, on old customers. Earlier pay-
ment habits have an impact on the acceptance 
of new orders. On markets with political or 
financial risks, the Group strives to attain credit 
insurance solutions. 
Accounts receivable constitutes the single largest 
financial asset according to Note 13. With refer-
ence to the above description it is management’s 
opinion that there is no material concentration 
of risk in this financial asset.
Costs for bad debts in SEK millions
< 30 days
> 30 days but < 90 days
> 90 days
0
20
40
60
80
100
120
2020
2019
33
113
0
2
4
6
8
10
12
SEK millions
%
Costs for bad debts / overdues in % of accounts receivable

113
Risk
Explanation
Mitigation
Risk for claims
The risk for the costs Alfa Laval would incur to rectify faults in products or 
systems and possible costs for penalties. 
The Group's net claim costs and their relation to net sales are found in the 
following graph.
Alfa Laval strives to minimize these costs through 
an ISO certified quality assurance. The major 
risks for claim costs appear in connection with 
new technical solutions and new applications. 
The risks are limited through extensive tests at 
the manufacturing site and at the customer site.
Costs for claims & warranty in SEK millions
Claims & warranty in % of net sales 
0
100
200
300
400
500
600
2020
2019
422
549
0
0.5
1.0
1.5
2.0
2.5
3.0
SEK millions
%
Claim costs in SEK millions and in % of net sales
Economic risk
Competition
The Group operates in competitive markets, which can impact the company’s 
development negatively.
In order to address this competition, the 
Group has for instance:
–  organized the operations into divisions 
based on business units in order to get a 
customer focused market penetration;
–  a strategy for acquisition of businesses in 
order to for instance reinforce the presence 
on certain markets or widen the Group’s 
product offering;
–  worked with creating a competitive cost level 
based on its international presence; and
–  worked with securing the availability of stra-
tegic metals and components in order to 
maintain the ability to deliver.
Business climate
In an overall economic downturn, the Group tends to be affected with a 
delay of six to twelve months depending on business division. The same 
applies with an economic upturn.
The fact that the Group is operating on a large 
number of geographical markets and within a 
wide range of business units means a diversifi-
cation that limits the effects of fluctuations in the 
business climate. Historically, fluctuations in the 
business climate have not generated decreas-
es in orders received by more than approxi-
mately 10–15 percent. The downturn in the 
business climate in 2009 and 2010 however 
meant a considerably larger decline in order 
intake. This was partly due to the fact that the 
decline happened abruptly from a very high 
level of demand that was the culmination of a 
long-lasting boom and that the price level in 
connection with this peak was inflated by sub-
stantial increases in raw material prices.
Pandemics
The outbreak of the COVID-19 pandemic proved to have a large impact on 
the world economy and the international business climate. Lockdowns in 
many regions within countries or in entire countries have during certain 
periods limited Alfa Laval’s ability to visit potential customers and perform 
service on site at customers but has only to a limited extent impacted the 
company’s supply chain and ability to manufacture products. 
Future pandemics can, depending on the rate of the spread of the infection 
and the risk for severe illness and death have smaller or larger consequences 
than COVID-19.
Global and local crisis management work and 
obedience to advice, instructions and rules 
from authorities are important to be able to short 
and long term handle the consequenses of the 
pandemic.
Cost reduction programmes and the flexibility in 
different national work time reduction schemes 
are important components to reduce costs to 
match the declining revenues.
Employees outside the manufacturing have to 
a large extent been able to work from home. 
Travelling has been severely restricted and has to 
a large extent been replaced by digital meetings.
Risks

114
Year
Year
Year
0
5,000
10,000
15,000
20,000
25,000
13
14
15
16
17
18
19
20
13
14
15
16
17
18
19
20
13
14
15
16
17
18
19
20
0
2,000
4,000
6,000
8,000
10,000
0
500
1,000
1,500
2,000
2,500
3,000
USD/ton
USD/ton
USD/ton
Nickel
Copper
Aluminium
Risk
Explanation
Mitigation
Commodity prices  
The Group depends on deliveries of stainless steel, carbon steel, cop-
per and titanium etc and on electricity for the manufacture of products. 
The prices in some of these markets are volatile and the supply of tita-
nium has occasionally been limited. There are a limited number of pos-
sible suppliers of titanium. The risk for severely increased prices or lim-
ited supply constitutes serious risks for the operations. The possibilities 
to pass on higher input prices to an end customer vary from time to 
time and between different markets depending on the competition.
The below graph below shows how much of the purchases of nickel 
and copper that have been hedged during 2020 and how much of the 
expected purchases during 2021 that were hedged at the end of 2020. 
The graph also presents to what extent the Group’s costs for these pur-
chases during 2021 would be affected if the prices would double from 
the level at December 31, 2020.
The Group is addressing this risk by securing long-
term supply commitments and through fixed prices 
from the suppliers during six to twelve months and 
through derivatives for metals and electricity.
For metals:
–  The exposures for the  coming 12 months of expected 
flows must be hedged between 30–70 percent.
–  In certain situations, exposures beyond 12 months 
can also be hedged.
For electricity the coming 12 months’ expected expo-
sure shall be hedged between 30–90 percent and the 
coming 13–24 months can be hedged up to 80 percent.
During periods of large price increases the customer 
price on titanium products has been linked to Alfa 
Laval’s procurement costs for titanium. Primarily in the 
period 2007 to 2011 the Group experienced large 
price fluctuations for many raw materials, but in par-
ticular for stainless steel, carbon steel, copper and 
titanium. The price volatility for the most important 
metals is presented below.
The Group uses metal futures to secure the price on 
strategic metals. 
Cost increase if current metal prices 
increase by 100%, without hedging
Cost increase if current metal prices 
increase by 100%, with hedging
Hedging 2020
Hedging 2021
0
150
300
450
600
750
Copper
Nickel
0
15
30
45
60
75
SEK millions
%
Sensitivity analysis and metal price hedging

115
Risk
Explanation
Mitigation
Legal and compliance risks
Non-compliance 
with socioeconomic 
or environmental 
legislation
Alfa Laval’s global and diversified business 
means that the Group is required to 
adhere to a variety of laws and regulations. 
Failure to meet socio-economic or envi-
ronmental requirements could lead to legal 
and financial consequences, and nega-
tively impact the company’s reputation.
Policies, procedures and training programmes are in place to ensure that legal 
risks relating to its business activities are identified and that decisions are 
made on the appropriate level in the organisation. The legal counsel supports 
the business in identifying and handling these legal risks. A whistle-blowing 
system is in place where employees can report any breaches of laws or Alfa 
Laval policies anonymously without repercussions.
Bribery and  
corruption
If Alfa Laval employees fail to comply with 
anti-bribery and anti-corruption laws, this 
could potentially lead to loss of business, 
financial penalties and reputational damage.
The Alfa Laval Anti-Bribery and Anti-Corruption Policy is applicable to all 
employees within the Group. The policy sets procedures for preventing, 
detecting, reporting and investigating acts of bribery and corruption. Training 
is a focus area to ensure an understanding of the risks associated with 
improper behaviour in this area.
Material source  
or type
Alfa Laval uses metals that may originate 
from areas classified as “conflict areas”. 
We manufacture products for customers 
with specific demands due to industry 
standards, for example marine, food and 
pharmaceutical customers.
Alfa Laval supports the US Securities and Exchange Commission’s rules and 
other initiatives concerning conflict minerals. Alfa Laval established a Conflict 
Minerals Policy in 2013. Due diligence is conducted in our supply chain to min-
imise the risk that minerals originate from conflict areas (especially in the 
Democratic Republic of Congo). Alfa Laval’s Supplier Risk & Compliance unit 
has processes in place to identify  risks and monitor potential high-risk suppli-
ers. The Alfa Laval Regulatory Operations unit monitors emerging legislation to 
ensure adherence in prioritized areas.
Unfair competition 
and antitrust
Infringements of applicable competition 
rules may result in Alfa Laval having to pay 
fines and losing goodwill.
The Fair Competition Policy provides guidelines to assist employees with how to 
adhere to competition law/antitrust laws, rules and regulation. Employees working 
with sales or purchasing are obliged to comply with this policy.
Export control and 
trade sanction 
regulations
Breach of export control and trade sanc-
tion regulations can lead to a denial of 
trade privileges, criminal proceedings and 
reputational damage.
The Alfa Laval Export Control Policy establishes rules for Group-wide handling 
of the relevant export control regulations, adherence to applicable trade sanc-
tions and it ensures that no products or services supplied by Alfa Laval are 
used in relation to weapons of mass destruction.
Risk for and in  
connection with  
litigations
This risk for the costs the Group may incur 
in managing litigations, costs in connec-
tion with settlements and costs for 
imposed penalties. The Group is involved 
in a few litigations, mainly with customers.
Any estimated loss risks are provided for.
Asbestos-related 
lawsuits
The Alfa Laval Group was as of December 
31, 2020, named as a co-defendant in a 
total of 623 asbestos-related lawsuits with 
a total of approximately 623 plaintiffs.
Alfa Laval strongly believes the claims against the Group are without merit and 
intends to vigorously contest each lawsuit. 
Based on current information and Alfa Laval’s understanding of these lawsuits, 
Alfa Laval continues to believe that these lawsuits will not have a material 
adverse effect on the Group’s financial condition or results of operation.
Supply chain risks
Business Principles 
deviation in the  
supply chain
Deviations could have an adverse impact 
on people, the environment and society that 
could damage the company’s reputation.
Alfa Laval works to have a supply chain that follows laws and the company’s 
business principles. All suppliers sign contracts where they agree to abide by 
the Alfa Laval Business Principles. Suppliers are assessed based on a risk 
analysis  (country/process) and high-risk suppliers are regularly audited. All 
employees within the procurement organisation and many suppliers are 
trained in all areas that are covered by the business principles. 
Human Rights 
breaches
The risk that the human rights of individu-
als linked to Alfa Laval are violated. For 
example, child labour, forced labour and 
freedom of association.
Alfa Laval's Business Principles build on the UN Global Compact, the OECD 
Guidelines for multinational enterprises, the UN Guiding Principles for Business 
and Human Rights and incorporate the UK Modern Slavery Act. Suppliers 
sign off on these business principles in their contracts with Alfa Laval. High-
risk suppliers are also audited that they follow the business principles.
Risks

116
Risk
Explanation
Mitigation
Production or product related risks
Risk connected  
to technical  
development
The risk that a competitor develops a new 
technical solution that makes Alfa Laval's 
products technically obsolete and there-
fore difficult to sell.
Alfa Laval makes a deliberate investment in research and development aiming 
at being in the absolute frontline of technical development.
Risk for technically 
related damages
The risk for the costs Alfa Laval may incur 
in connection with a product delivered by 
the Group breaking down and causing 
damages to life and property. The main 
risk in this context concerns high-speed 
separators, due to the large forces that 
are involved when the bowl in the separa-
tor spins with a very high number of revo-
lutions. In a breakdown the damages can 
be extensive.
Alfa Laval makes extensive testing and has an ISO certified quality assurance. 
The Group has product liability insurance. The number of damages is low and 
few damages have occurred historically.
Health & Safety 
Health and safety risks such as occupa-
tional diseases and accidents. The risk 
that an employee is injured or killed in a 
workplace accident.
The Alfa Laval Occupational Health & Safety (OHS) Policy guides the work 
together with our OHS Manual. The purpose with these is to safeguard a 
healthy and safe working environment by preventing accidents, occupational 
diseases and other health risks. We have a process to continuously monitor 
high-risk areas in our operations, train employees and enforce changes.
Environmental risks
Major environ-
mental incident  
at a site
An incident that causes a significant envi-
ronmental damage could lead to long-term 
environmental impact, negative impact on 
people, fines and reputational damage to 
the company.
The Alfa Laval Environmental Policy is applicable to the entire Alfa Laval Group. 
Environmental performance is monitored and measured through 
Environmental Management Systems. The large sites are ISO 14001 certified. 
Smaller sites work according to Environmental Management Systems where 
risks are identified, and effective countermeasures are implemented. 
Use of hazardous 
chemicals 
Using hazardous chemicals could lead to 
severe illness or have a serious negative 
impact on our environment or society.
The Alfa Laval Group Black and Grey Chemicals List is the primary tool to control 
the use of chemical substances. This list compiles substances that are classi-
fied as banned, very high concern or concern. The list is based on EU legisla-
tions, such as REACH and RoHS, and global agreements such as for example 
POPs and IMO. The list is updated each year to reflect any legislative changes.
Climate and water 
Climate change could lead to increased 
costs and constrain production. Water 
scarcity in the supply chain or at our sites 
can constrain production. Cost of energy 
or carbon emissions can increase due to 
climate legislation. 
Alfa Laval does not use significant amounts of energy in its production. To 
continuously improve, we have targets to both increase energy efficiency and 
to reduce carbon emissions. Alfa Laval production is not water intensive and 
most water facilities are closed loop. The Environmental Strategy for 2020 
includes targets for all three areas. Read more in the Environment chapter in 
Alfa Laval’s Sustainability Report.
IT related risks
Loss of intellectual 
property, financial 
or personal data 
Loss of intellectual property, financial or 
personal data due to for instance 
un authorized access to Alfa Laval's  
computer systems.
Alfa Laval holds compulsory trainings on information security awareness. Policies 
describe what is confidential information and how the information should be 
classified. Alfa Laval’s IT agreements contain the necessary Information Security 
components. Information security is also monitored in our project model – feasibility, 
pre-study and project. A template is also sent at an early stage to all potential 
suppliers to identify if there are any possible infringements of information security.

117
Risk
Explanation
Mitigation
Human capital risks
Risk connected to 
attracting and 
retaining talents
Companies that do not succeed in attract-
ing and retaining talents risk experiencing 
an inferior development compared to 
companies that succeed with this.
To offer interesting positions, personal and professional development, a good 
working environment and competitive compensation and benefits are prior-
itized areas within Alfa Laval.
Other risks
Business  
interruption risks
The risk that single units or functions with-
in the Group can be hit by business inter-
ruption due to:
– strikes and other labour market conflicts;
– fires, natural catastrophes etc;
–  computer access violations, lack of 
backups etc.; and
–  corresponding problems at major sub-
suppliers.
Alfa Laval has a well-developed dialog with the local unions, which reduces 
the risk for conflicts and strikes where Alfa Laval is directly involved. It is how-
ever more difficult to protect the company against conflicts in other parts of 
the labour market, for instance within transportation.
Alfa Laval is minimizing the following two risks through an active preventive 
work at each site in line with the developed global policies in each area under 
supervision of manufacturing management, the Group’s Risk Management 
function, Real Estate Management, IT and HR.
Problems at major sub-suppliers are minimized by Alfa Laval trying to use several 
suppliers of input goods that when needed can cover up for a drop in production 
somewhere else. The wish for long-term and competitive delivery agreements 
however puts restrictions on the level of flexibility that can be achieved. When 
there is a shortage the total supply may be too limited to allow exchangeability.
HPR stands for “Highly Protected Risk” and is the insurance industry’s highest 
rating for risk quality. This rating is reserved for those commercial properties 
where the exposure for physical damages is reduced to a minimum consider-
ing building construction, operations and local conditions. HPR means that all 
physical risks in and around the facility are documented and that these are 
kept within certain limits. Alfa Laval’s production facility in Lund in Sweden, 
which is the Group’s largest and most important facility is HPR classified, as 
well as the production facilities in Chesapeake and Newburyport in the U.S. A 
number of other key production facilities are being evaluated and may eventu-
ally become HPR classified.
An HPR classification means that the facility has state of the art fire and 
machinery protection systems and that the responsible personnel has ade-
quate security routines to make sure that these protection systems are main-
tained and in function. In addition, known possible sources of ignition are 
under strict control to prevent a fire from starting. For an HPR facility the risk 
for a physical damage is brought to a minimum, which minimises the risk for 
business interruption that could have extensive consequences for Alfa Laval 
and its customers. For other production facilities, not HPR classified, the aim 
is also to reduce the risk for damage and business interruption to a minimum 
by keeping, among other things, ignition sources under strict control. Loss 
prevention visits are conducted according to a schedule based on size and 
importance for Alfa Laval.
Political risk
The risk that the authorities, in the coun-
tries where the Group is operating, by 
political decisions or administration make 
continued operations difficult, expensive 
or impossible for the Group.
The Group is mainly operating in countries where the political risk is consid-
ered to be negligible or minor. The operations that are performed in countries 
where the political risk is deemed to be higher are not material.
Insurance risks
These risks refer to the costs that Alfa Laval 
may incur due to an inadequate insurance 
coverage for property, business interrup-
tion, liability, transport, life and pensions.
The Group strives to maintain an insurance coverage that keeps the risk level at 
an acceptable level for a Group of Alfa Laval's size and still is cost efficient. At the 
same time a continuous work is going on to minimise the risks in the operations 
through proactive measures.
Risks connected to 
credit terms
The limited freedom of action that can be 
imposed on the Group through restrictions 
connected to credit terms in loan agreements.
Alfa Laval’s strong solidity and profitability limits this risk.
Risks

118
Notes
Note 1.   Operating segments
Alfa Laval's business is divided into three Business Divisions ”Energy”, ”Food 
& Water” and ”Marine” that sell to external customers and are responsible 
for the manufacturing of the products and one division “Operations & Other” 
covering procurement and logistics as well as corporate overhead and non-
core businesses. These four divisions constitute Alfa Laval’s four operating 
segments. The former ”Greenhouse” Division ceased to exist as per the end 
of 2019 when the last operations were divested.
The customers to the Energy Division purchase products and systems for 
energy applications, whereas the customers to the Food & Water Division 
purchase products and systems for food and water applications. The cus-
tomers to the Marine Division purchase products and systems for marine 
and offshore applications. 
The three ﬁrst Business Divisions are in turn split into a number of Business 
Units. The Energy Division consists of four Business Units: Brazed & Fusion 
Bonded Heat Exchangers, Energy Separation, Gasketed Plate Heat Exchangers 
and Welded Heat Exchangers. The Food & Water Division consists of ﬁve 
Business Units: Decanters, Food Heat Transfer, Food Systems, Hygienic 
Fluid Handling and High Speed Separators. The Marine Division consists of 
four Business Units: Boiler Systems, Gas Systems, Marine Separation & 
Heat Transfer Equipment and Pumping Systems.
The operating segments are only responsible for the result down to and in-
cluding operating income excluding comparison distortion items and for the 
operating capital they are managing. This means that ﬁnancial assets and liabilities, 
pension assets, provisions for pensions and similar commitments and current and 
deferred tax assets and liabilities are a Corporate responsibility and not an operating 
segment responsibility. This also means that the ﬁnancial net and income taxes 
are a Corporate responsibility and not an operating segment responsibility. 
The operating segments are only measured based on their transactions 
with external parties.
Organisational change
As of January 1, 2020, the product groups within Operations have been moved 
over to the Business Units within the Divisions. This gives the Business Units 
a clearer financial consolidation as a part of a more decentralised business 
organisation. Due to this the comparison figures for previous periods have been 
restated, which has impacted depreciation and amortisation, investments, 
assets, liabilities and number of employees by division. Remaining in Operations 
is procurement, logistics, distribution and production development.
The depreciation and amortisation that have been moved from Operations to 
the Divisions in the comparison periods have not impacted the operating income 
in the Divisions.
Orders received
Consolidated
SEK millions
2020
2019
Energy
11,952
13,963
Food & Water
13,814
14,026
Marine
14,067
15,953
Greenhouse
–
105
Operations & Other
0
72
Total
39,833
44,119
Order backlog
Consolidated
SEK millions
2020
2019
Energy
4,740
5,214
Food & Water
5,056
4,894
Marine
9,173
11,443
Greenhouse
–
0
Operations & Other
0
0
Total
18,969
21,551
Net sales
Consolidated
 
SEK millions
2020
2019
Energy
12,187
13,814
Food & Water
13,414
14,189
Marine
15,867
17,993
Greenhouse
–
444
Operations & Other
0
77
Total
41,468
46,517
Operating income in management accounts
Consolidated
SEK millions
2020
2019
Energy
1,882
2,069
Food & Water
2,371
2,268
Marine
2,758
3,425
Greenhouse
–
-30
Operations & Other
-629
-742
Total
6,382
6,990
Reconciliation with Group total:
 
Comparison distortion items
-796
189
Consolidation adjustments *
-6
19
Total operating income
5,580
7,198
Financial net
-603
23
Result after financial items
4,977
7,221
* Difference between management accounts and IFRS. 
Operating income in management accounts is very close to operating income 
under IFRS. There are only two differences. Operating income in management 
accounts does not include comparison distortion items nor all the consolidation 
adjustments that are made in the official accounts. 
Assets / Liabilities
Consolidated
Assets
Liabilities
SEK millions
2020
2019 *
2020
2019 *
Energy
12,726
14,570
5,574
5,890
Food & Water
11,226
12,522
5,184
5,088
Marine
24,086
27,796
6,695
8,481
Greenhouse
 –
39
–
71
Operations & Other
1,276
1,613
522
564
Subtotal
49,314
56,540
17,975
20,094
Corporate
11,546
7,856
13,814
16,555
Total
60,860
64,396
31,789
36,649
* Restated due to the organisational change described earlier in the note.
Corporate refers to items in the statement on financial position that are interest 
bearing or are related to taxes.
Investments
Consolidated
 
SEK millions
2020
2019 *
Energy
352
453
Food & Water
295
288
Marine
137
177
Greenhouse
–
5
Operations & Other
448
414
Total
1,232
1,337
* Restated due to the organisational change described earlier in the note.
Depreciation
Consolidated
 
SEK millions
2020
2019 *
Energy
452
467
Food & Water
384
385
Marine
814
884
Greenhouse
–
8
Operations & Other
339
309
Total
1,989
2,053
* Restated due to the organisational change described earlier in the note.

119
Notes
Note 2.   Information about geographical areas
Countries with more than 10 percent of either net sales, non-current assets 
or investments are reported separately.
Net sales
Consolidated
 
 
2020
2019
 
SEK millions
%
SEK millions
%
To customers in:
 
 
  Sweden
989
2.4
981
2.1
  Other EU
11,205
27.0
11,811
25.4
  Other Europe 
3,247
7.8
3,356
7.2
  USA
5,923
14.3
7,390
15.9
  Other North America
946
2.3
1,062
2.3
  Latin America
1,630
3.9
2,060
4.4
  Africa
418
1.0
490
1.1
  China
6,180
15.0
6,582
14.1
  South Korea
3,456
8.3
4,210
9.1
  Other Asia
6,984
16.8
8,112
17.4
  Oceania
490
1.2
463
1.0
Total
41,468
100.0
46,517
100.0
Net sales are reported by country on the basis of invoicing address, which is 
normally the same as the delivery address.
Non-current assets
Consolidated
2020
2019
 
SEK millions
%
SEK millions
%
  Sweden
2,344
7.1
2,207
6.3
  Denmark
4,806
14.4
5,044
14.3
  Other EU
4,046
12.2
4,209
11.9
  Norway
11,172
33.6
12,847
36.4
  Other Europe
117
0.4
137
0.4
  USA
3,343
10.1
4,468
12.7
  Other North America
130
0.4
150
0.4
  Latin America
202
0.6
313
0.9
  Africa
9
0.0
12
0.0
  Asia
3,523
10.6
3,741
10.6
  Oceania
110
0.3
130
0.4
Subtotal
29,802
89.7
33,258
94.3
Other long-term securities
1,575
4.7
141
0.4
Pension assets
70
0.2
70
0.2
Deferred tax asset
1,791
5.4
1,801
5.1
Total
33,238
100.0
35,270
100.0
Investments
Consolidated
 
 
2020
2019
 
SEK millions
%
SEK millions
%
  Sweden
184
14.9
228
17.1
  Denmark
135
11.0
116
8.7
  Italy
298
24.2
98
7.3
  Other EU
74
6.0
133
10.0
  Other Europe
84
6.8
67
5.0
  USA
69
5.6
242
18.1
  Other North America
2
0.2
3
0.2
  Latin America
7
0.6
20
1.5
  Africa
0
0.0
1
0.1
  China
254
20.6
324
24.2
  Other Asia
122
9.9
100
7.5
  Oceania
3
0.2
5
0.3
Total
1,232
100.0
1,337
100.0
Note 3.    Information about products  
and services
Net sales by product/service
Consolidated
SEK millions
2020
2019
Own products within:
 
   Separation
7,116
7,677
   Heat transfer
16,439
18,694
   Fluid handling
9,156
10,361
   Marine environmental
5,170
5,802
   Other
1
78
Associated products
1,338
1,569
Services
2,248
2,336
Total
41,468
46,517
The split of own products within separation, heat transfer and fluid handling 
is a reflection of the current three main technologies. Marine environmental is 
a new large product area basically outside the main technologies. Other is 
own products outside these four product areas. Associated products are 
mainly purchased products that compliment Alfa Laval’s product offering. 
Services cover all sorts of service, service agreements etc. 
Note 4.   Information about major customers
Alfa Laval does not have any customer that accounts for 10 percent or more 
of net sales. Tetra Pak within the Tetra Laval Group is Alfa Laval's single larg-
est customer with a volume representing 4.7 (5.4) percent of net sales. See 
Note 33 for more information.
Note 5.   Employees
Average number of employees – total
Consolidated
Number of female 
employees
Total number of 
employees
 
2020
2019
2020
2019
Parent company
–
–
–
–
Subsidiaries in Sweden (8)
576
579
2,392
2,385
Total in Sweden (8)
576
579
2,392
2,385
Total abroad (122)
3,017
2,958
14,768
15,002
Total (130)
3,593
3,537
17,160
17,387
The figures in brackets in the text column state how many companies had 
employees as well as salaries and remunerations in 2020.
Average number of employees – in Sweden by municipality 
Consolidated
 
2020
2019
Botkyrka
575
546
Eskilstuna
232
231
Lund
1,155
1,172
Ronneby
275
281
Vänersborg
98
100
Other *
57
55
Total
2,392
2,385
*  “Other” refers to municipalities with less than 10 employees and also includes employees at 
branch offices abroad.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

120
Average number of employees – by country/district
Consolidated
Number of female employees
Total number of employees
 
2020
2019
2020
2019
Argentina
11
12
38
38
Australia
21
20
89
101
Belgium
2
2
22
24
Brazil
57
56
372
374
Bulgaria
1
1
5
5
Chile
5
6
27
29
Colombia
16
16
38
33
Denmark
443
430
1,763
1,778
Philippines
7
6
17
18
Finland
28
34
114
160
France
169
166
817
816
United Arab Emirates
22
22
109
105
Greece
8
8
27
24
Hong Kong
3
3
14
13
India
78
71
1,292
1,301
Indonesia
20
18
84
82
Iran
 –
0
1
5
Italy
165
176
737
831
Japan
59
58
250
241
Canada
18
20
94
95
China
707
693
3,354
3,343
Korea
50
53
305
309
Latvia
6
6
9
9
Malaysia
44
42
124
119
Mexico
12
11
50
49
Netherlands
96
90
442
449
Norway
210
193
1,092
1,061
New Zeeland
2
2
18
17
Panama
6
8
17
18
Peru
5
5
21
22
Poland
80
53
348
306
Portugal
4
4
8
9
Qatar
 –
 –
9
9
Romania
2
2
9
9
Russia
88
99
215
231
Saudi Arabia
 –
 –
39
37
Switzerland
3
3
12
12
Singapore
64
63
237
230
Slovakia
1
1
8
7
Slovenia
4
3
17
15
Spain
27
25
103
102
UK
42
45
288
306
Sweden
576
579
2,392
2,385
South Africa
15
12
47
43
Taiwan
17
16
44
42
Thailand
17
18
59
56
Czech Republic
6
6
28
29
Turkey
15
11
61
52
Germany
62
62
270
271
Ukraine
3
5
11
13
Hungary
3
3
12
12
USA
286
292
1,563
1,707
Vietnam
4
4
21
18
Austria
3
3
17
17
Total
3,593
3,537
17,160
17,387
Gender distribution
Consolidated
2020
 
2019
Total 
number
Male 
%
Female 
 %
Total 
number
Male 
%
Female 
 %
Board members (excluding deputies)
11
72.7
27.3
11
63.6
36.4
President and other executive officers
10
70.0
30.0
9
77.8
22.2
Managers in Sweden
293
75.4
24.6
289
76.1
23.9
Managers outside Sweden
2,339
81.9
18.1
2,272
82.7
17.3
Managers total
2,632
81.2
18.8
2,561
82.0
18.0
Employees in Sweden
2,392
75.9
24.1
2,385
75.7
24.3
Employees outside Sweden
14,768
79.6
20.4
15,002
80.3
19.7
Employees total
17,160
79.1
20.9
17,387
79.7
20.3

121
Notes
Note 6.   Salaries and remunerations
Salaries and remunerations – total
Consolidated 
SEK millions
2020
2019
Board of Directors, Presidents and Vice Presidents
275
281
 - out of which, variable
48
69
Other
8,097
8,618
Total salaries and remunerations
8,372
8,899
Social security costs
1,359
1,470
Pension costs, defined benefit plans
96
109
Pension costs, defined contribution plans
592
606
Total personnel costs
10,419
11,084
The Group's pension costs and pension liabilities relating to the Board of 
Directors, presidents and vice presidents amounts to SEK 33 (31) million and 
SEK 276 (286) million respectively. SEK 82 (87) million of the pension liabilities 
is covered by the Alfa Laval Pension Fund.
Equity compensation beneﬁts                                                                  
During the period 2019 to 2020 no equity related benefits existed within Alfa Laval.
Variable remunerations
All employees have either a fixed salary or a fixed base salary. For certain 
personnel categories the remuneration package also includes a variable ele-
ment. This relates to personnel categorises where it is customary or part of a 
market offer to pay a variable part. Variable remunerations are most com-
mon in sales related jobs and on higher managerial positions. Normally the 
variable part constitutes a minor part of the total remuneration package. 
 
Cash-based long-term incentive programme
The Board of Directors decided in 2020 to implement step three of the modified 
cash based long-term incentive programme for maximum 95 senior managers 
in the Group including the Chief Executive Officer and the persons defined 
as executive officers. The Annual General Meetings 2018 and 2019 decided 
to implement step one and two of the programme for the same target group. 
The outcome of the modified programme depends on how the adjusted EBITA 
margin and the net sales growth have developed during the three-year period, 
with a 50/50 weight between the targets. This means that there will be no award 
during the first two years since it is first in year three that it can be determined 
to what extent the targets have been achieved. Maximum outcome is awarded 
when the targets are exceeded. The remuneration from the modified long-term 
incentive programme can constitute maximum 25, 40 or 50 percent of the 
fixed remuneration depending on position. Payment to the participants in the 
0
2
4
6
8
10
12
14
16
18
Max 100%
Threshold 
0%
33%
67%
Actual 
outcome
17
Actual 
outcome
6
Long-term incentive plan 2018–2020
Outcome (%)
Adjusted EBITA margin (%)
Net sales growth (%)
Award
programme is made after year three and only provided that they are still em-
ployed at the date of payment (except in case of termination of employment 
due to retirement, death or disability). If the employee resigns or is dismissed 
before the end of the three-year period, the employee will not be entitled to 
any pay-out. If the employee moves to a position that is not eligible for this 
programme, a pro-rata payment will be made after the end of the three year 
period. Paid remunerations from the long-term incentive programme do normally 
not affect the pensionable income or the holiday pay. 
In 2020 step one, two and three of the modiﬁed programme were running 
in parallel. 
The outcome of step one covering the period January 1, 2018 – December 
31, 2020 was:
Long-term incentive plan 2018–2020
Consolidated
Performance targets
Outcome
Award*  
in %
Threshold
Maximum
2018
2019
2020
Average
Adjusted EBITA margin (%)
14.0
17.0
16.5
17.2
17.4
17.0
100.00
Net sales growth (%)
4
7
15
14
-11
6
66.67
If achieved the award is (%)
0
100
* To be paid in 2021.
There are three opportunity levels in the plan and the award per opportunity level and the total cost for the plan was: 
Long-term incentive plan 2018-2020
Consolidated
 
Outcome per maximum opportunity
Total cost 
SEK millions
25%
40%
50%
Award
20.83%
33.33%
41.67%
42
The performance targets, the actual outcome and the resulting award were:
The Annual General Meeting 2017 decided to implement step seven of a cash-
based long-term incentive programme for maximum 85 senior managers in 
the Group including the Chief Executive Officer and the persons defined as 
executive officers. Step seven covered the period January 1, 2017 – December 31, 
2019. The outcome during the three year period in percent of maximum out-
come was 100 percent and the award of SEK 27 million was paid during 2020.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

122
Salaries and remunerations to Group Management
Consolidated
Group Management
 
Chief Executive Officer/President
Other executive officers
Tom Erixon
SEK thousands
2020
2019
2020
2019
Salary and remunerations
 
 
  Fixed remuneration
 
 
    Base salary
14,000
11,250
31,254
29,126
    Voluntary salary reduction due to COVID-19
-1,167
–
-1,119
–
    Other benefits 1)
545
374
1,364
4,228
  Variable remuneration  2)
 
 
  Variable salary
4,905
6,300
6,926
9,407
  Cash-based long-term incentive programme
5,063
2,944
6,900
5,027
Total salary and remuneration
23,346
20,868
45,325
47,788
Pension costs
 
 
  Retirement and survivors’ pension 3)
7,015
5,649
14,649
13,114
  Life, disability and health care insurance 4)
48
75
399
393
Total pension costs
7,063
5,724
15,048
13,507
Total remuneration
30,409
26,592
60,373
61,295
Proportion of fixed and variable remuneration
 
 
  Fixed remuneration including fixed pension costs
67%
65%
71%
71%
  Variable remuneration including variable pension costs
33%
35%
29%
29%
Number of other executive officers at year end
 
9
8
Variable salary (STI)
 
  Included
Yes
Yes
  Un-guaranteed target of base salary
30%
Not set
  Maximum of base salary
60%
40%
Cash-based long-term incentive programme (LTIP)
 
   Included
Yes
Yes
  Current year award 5)
5,834
1,688
9,457
1,933
  Vested unpaid awards at December 31
5,834
5,063
9,457
5,799
Commitment for early retirement 6)
No
Yes
Commitment for severance pay
Yes 7)
Yes 8)
Commitment for retirement and survivors' pension 
9)
10)
1)   Value of company car, housing benefit, taxable daily allowances, holiday pay and pay-
ment for vacation taken in cash.
2)  Refers to what was paid during the year.
3)  Defined contribution based.
4)  Defined benefit based.
5)  Based on current base salary.
6)  From the age of 62. A defined contribution solution for early retirement with a premium of 
15 percent of the pensionable salary.
7)  If Alfa Laval terminates his employment before the age of 61, he will receive 24 months’ 
remuneration, between 61 and 62 he will receive 12 months’ remuneration and from 62 
he will receive 6 months’ remuneration.
8)       Maximum 2 years’ salary. The commitments define the conditions that must be fulfilled in 
order for them to become valid. 
9)       Is not included in the ITP plan. He has a defined contribution benefit comprising 50 per-
cent of the base salary. In addition, he may exchange salary and variable remunerations 
for a temporary old age and family pension.
10)   For salaries above 30 base amounts there is a defined contribution pension solution with 
a premium of 30 percent of the pensionable salary above 30 base amounts. Until May 1, 
2012 the executive officers also had a special family pension that represented a supple-
ment between the old age pension and the family pension according to ITP. For the per-
sons that were executive officers on May 1, 2012 the special family pension has been 
converted to a premium based supplementary retirement pension based on the premium 
level in December 2011. In addition, they may exchange salary and variable remunera-
tions for a temporary old age and family pension.
Remuneration policy for executive ofﬁcers
The remuneration policy for executive officers is established by the Annual 
General Meeting. The complete policy is found in Note 37.
The remunerations to the Chief Executive Ofﬁcer/Managing Director are 
decided by the Board of Directors based on proposals from the Remuneration 
Committee according to the guidelines established by the Annual General 
Meeting. The remunerations to the other members of Group Management 
are decided by the Remuneration Committee according to the same guide-
lines. The principle used when deciding the remunerations to executive ofﬁcers 
is to offer a competitive remuneration where the remuneration package is 
mainly based on a ﬁxed monthly salary, with an option for a company car 
and in addition to that a variable remuneration of up to 40 percent of the sal-
ary (managing director up to 60 percent of the salary). The outcome of the 
variable remuneration depends on the level of fulﬁlment of the established 
mainly ﬁnancial targets and to a limited extent also qualitative objectives. 
The guidelines for pension, termination and severance pay differ between 
the Chief Executive Ofﬁcer/Managing Director and the other executive  
ofﬁcers, see the below table.
The Annual General Meeting 2017 decided to implement step seven of a cash-
based long-term incentive programme for maximum 85 senior managers in 
the Group including the Chief Executive Officer and the persons defined as 
executive officers. 
The Board of Directors decided in 2020 to implement step three of the 
modiﬁed cash based long-term incentive programme for maximum 95 senior 
managers in the Group including the Chief Executive Ofﬁcer and the persons 
deﬁned as executive ofﬁcers. The Annual General Meetings 2018 and 2019 
decided to implement step one and two of the programme for the same target 
group. The outcome of the modiﬁed programme depends on how the adjusted 
EBITA margin and the net sales growth have developed during a three-year period, 
with a 50/50 weight between the targets. This means that there will be no award 
during the ﬁrst two years since it is ﬁrst in year three that it can be determined to 
what extent the targets have been achieved. Maximum outcome is awarded when 
the targets are exceeded. The remuneration from the modiﬁed long-term incentive 
programme can constitute maximum 25, 40 or 50 percent of the ﬁxed remuneration 
depending on position. Payment to the participants in the programme is 
made after year three and only provided that they are still employed at the 
date of payment.

123
Notes
Remunerations to Board members *
Consolidated 
 
SEK thousands
 
2020
2019
Fees by function:
 
  Chairman of the Board
1,750
1,750
  Other members of the Board
585
585
Supplement to:
 
  Chairman of the Audit Committee
200
200
  Other members of the Audit Committee
125
125
  Chairman of the remuneration committee
50
50
  Other members of the remuneration committee
50
50
Fees by name:
 
  Dennis Jönsson
Chairman
1,925
 -
  Anders Narvinger
Chairman
 –
1,800
  Henrik Lange
Member
785
710
  Ray Mauritsson
Member
585
 –
  Heléne Mellquist
Member
710
710
  Maria Moræus Hanssen
Member
585
585
  Anna Ohlsson-Leijon
Member
 –
785
  Finn Rausing
Member
585
585
  Jörn Rausing
Member
635
635
  Ulf Wiinberg
Member
635
635
Total
 
6,445
6,445
* Elected at the Annual General Meeting and not employed by the company.
The reported remunerations refer to the period between two Annual General 
Meetings.
The Chairman of the Board does not have any agreement on future retire-
ment or severance pay with Alfa Laval.
The audit committee and the remuneration committee have had the following 
members during the last two years:
2020
2019
Audit Committee:
   Chairman
Henrik Lange
Anna Ohlsson-Leijon
   Other member
Dennis Jönsson
Henrik Lange
   Other member
Heléne Mellquist
Heléne Mellquist
Remuneration committee:
   Chairman
Dennis Jönsson
Anders Narvinger
   Other member
Ulf Wiinberg
Ulf Wiinberg
   Other member
Jörn Rausing
Jörn Rausing
The members of the committees are appointed at the constituent meeting of 
the Board of Directors directly after the Annual General Meeting.
During 2019 one of the other executive officers in Group Management retired 
i.e. Peter Leifland as of May 1, 2019.  His costs for 2019 are included in the 
above table. 
Board of Directors
For 2020, the Board of Directors receive a total fixed remuneration of SEK 
6,445 (6,445) thousand, which is distributed among the members elected at 
the Annual General Meeting that are not employed by the company. These 
Directors do not receive any variable remuneration. 
Note 7.    Information on auditors and  
auditors' fee
The line “Group auditors” in the below table is referring to the auditors elected 
at Annual General Meeting of Alfa Laval AB (publ). The Annual General 
Meetings 2019 and 2020 decided to elect EY as the Group's auditors for 
the coming year. 
 
Fees and expense compensation
Consolidated
SEK millions
2020
2019
Audit engagements
 
Group auditors
39
39
Other audit firms
0
0
Total
39
39
Audit related services
 
Group auditors
2
1
Other audit firms
2
1
Total
4
2
Tax services
 
Group auditors
8
8
Other audit firms
10
13
Total
18
21
Other services
 
Group auditors
1
2
Other audit firms
8
17
Total
9
19
Expenses
 
Group auditors
0
1
Other audit firms
0
0
Total
0
1
Total
 
Group auditors
50
51
Other audit firms
20
31
Total
70
82
An audit engagement includes examining the financial statements, assessing 
the accounting principles used and significant estimates made by manage-
ment, as well as evaluating the overall financial statement presentation. It 
also includes an examination in order to give an opinion on the Board's dis-
charge from liability. Audit related services are audit services that are outside 
the audit engagement. Tax services refer to advices given in connection with 
various tax matters. All other assignments are defined as other services. 
Expenses refer to reimbursements of travel costs, secretarial services etc.  
Note 8.   Comparison distortion items
Comparison distortion items
Consolidated 
 
SEK millions
2020
2019
Other operating income
 
Comparison distortion items:
 
–  Realised gain on sale of businesses
–
260
Other operating costs
 
Comparison distortion items:
 
– Realised loss on sale of businesses
-55
-71
– Write down of goodwill
-360
 –
– Restructuring costs
-381
–
Net comparison distortion items
-796
189
The realized loss in 2020 is relating to the divestment of the operations in 
DSO Fluid Handling Inc in the U.S. 
The write down of goodwill and the restructuring costs are part of the 
programme for adapting the organisation to changing market fundamentals that 
was announced on December 16, 2020. The program is mainly addressing 
structural imbalances in speciﬁc parts of the oil & gas business as well as 
parts of the Marine business. In addition, the program will further drive the 
competence shift required in light of the accelerated pace of digitalization. 
The write down of goodwill concerns oil & gas related businesses. The total 
restructuring cost is expected to amount to approximately SEK 850 million, 
out of which the remaining part is expected to be charged in the second 
quarter of 2021. Approximately 600 employees mainly in Europe and North 
America will be affected by the program. The program will generate annual 
savings of around SEK 300 million, with full effect expected from mid-2022.
The realised gain in 2019 was related to the divestments of part of the air 
heat exchanger business related to commercial/industrial air heat exchangers 
in the Greenhouse division to the LU-VE Group. The realised loss in 2019 
was relating to a realised loss from the divestments of the last remaining 
Greenhouse operation shell-and-tube Sarasota, also known as Alfa Laval 
Champ, to Thermal Solutions Manufacturing.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

124
Note 11.   Interest income/expense and 
financial exchange rate gains/losses
Split on type of income/expense or gain/loss
Consolidated
SEK millions
2020
2019
Interest income
 
  Leasing
0
0
  Other interest
48
88
Exchange rate gains
 
  Unrealised
80
50
  Realised
92
239
Total
220
377
Interest expenses
 
  Leasing
-78
-71
  Other interest
-187
-221
Exchange rate losses
 
  Unrealised
-60
-24
  Realised
-524
-70
Total
-849
-386
In the Group, reported net exchange differences of SEK 313 (-288) million 
relating to debts in foreign currencies have been charged to other compre-
hensive income. These debts finance the acquisition of shares in foreign 
subsidiaries and act as a hedge to the acquired net assets. The amount is 
charged with tax resulting in a net after tax impact on other comprehensive 
income of SEK 248 (-226) million. 
Split on type of income/expense or gain/loss
Parent company
SEK millions
2020
2019
Interest income
 
External companies
 –
–
Exchange rate gains
 
Unrealised
0
1
Total
0
1
Interest costs
 
External companies
0
0
Exchange rate losses
 
Unrealised
0
0
Total
0
0
Note 12.   Non-controlling interests
Alfa Laval has the following subsidiaries with non-controlling interests. None of these non-controlling interests are material.
Specification of subsidiaries with non-controlling interests
SEK millions, unless otherwise stated
Non-controlling  
interest %
Attributable to non-controlling interest
Net income
Equity
Company name
Country of domicile
2020
2019
2020
2019
2020
2019
Alfa Laval Aalborg Indústria e Comércio Ltda
Brazil
0.5
0.5
0
0
0
0
Liyang Sifang Stainless Steel Products Co., Ltd. 
China
35
35
24
22
158
144
Aalborg Industries Water Treatment Pte. Ltd. *
Singapore
-
40
–
0
–
0
Ziepack SA
France
49
49
3
0
5
3
AO Alfa Laval Potok
Russia
0.0005
0.0007
0
0
0
0
Total
 
 
27
22
163
147
* Liquidated.
Note 9.   Depreciation and amortisation
Split by function
Consolidated
SEK millions
2020
2019
Cost of goods sold
-1,484
-1,556
Sales
-151
-150
Administration
-216
-221
Research and development
-9
-9
Other income and costs
-129
-117
Total
-1,989
-2,053
Split by type of asset
Consolidated
SEK millions
2020
2019
Intangible assets
 
Patents and unpatented know-how
-321
-373
Trademarks
-505
-580
Licenses, renting rights and similar rights
-5
-4
Internally generated intangible assets
-3
-1
-834
-958
Tangible assets
 
  Purchased assets
 
  Buildings and ground installations
-212
-192
  Machinery
-362
-339
  Equipment
-145
-147
-719
-678
  Leased assets
 
  Right-of-use assets real estate
-350
-328
  Rigth-of-use asset machinery
-17
-21
  Rigth-of-use asset equipment
-69
-68
-436
-417
 
Sum tangible assets
-1,155
-1,095
Total
-1,989
-2,053
Note 10.    Dividends and other financial 
income and costs
Split by type
Consolidated
SEK millions
2020
2019
Dividends from other
0
0
Gain or loss on sale of marketable securities
71
7
Fair value changes in marketable securities
-45
25
Total
26
32

125
Notes
Financial liabilities
Consolidated
 
 
Measured at 
Fair value through
Amortised cost
Valuation  
 hierarchy level
Profit or loss
Other comprehensive income
SEK millions
2020
2019
2020
2019
2020
2019
Non-current liabilities
Liabilities to credit institutions etc
*
 –
 –
 –
 –
8,043
10,600
Lease liabilities
*
 –
–
–
–
1,573
1,890
Derivative liabilities
2
1
6
4
36
 –
 –
 
 
 
Current liabilities
 
 
 
Liabilities to credit institutions etc
*
 –
 –
 –
 –
1,125
1,422
Accounts payable
*
 –
 –
 –
 –
2,526
3,311
Notes payable
*
 –
 –
 –
 –
232
128
Lease liabilities
*
 –
 –
 –
 –
662
730
Other liabilities
*
 –
 –
 –
 –
3,577
4,219
Accrued costs
*
 –
 –
 –
 –
2,144
2,160
Derivative liabilities
2
50
15
58
293
 –
 –
Total financial liabilities
51
21
62
329
19,882
24,460
* Valued at amortised cost.
Valuation hierarchy level 1 is according to quoted prices in active markets for identical assets and liabilities.
Valuation hierarchy level 2 is out of directly or indirectly observable market data outside level 1.
Note 13.   Classification of financial assets and liabilities
Financial assets
Consolidated
 
 
Measured at 
Fair value through
Amortised cost
Valuation  
 hierarchy level
Profit or loss
Other comprehensive income
SEK millions
2020
2019
2020
2019
2020
2019
Non-current assets
 
 
 
Other non-current assets
 
 
 
Other long-term securities
1 and 2
–
–
1,490
78
–
–
Derivative assets
2
5
7
191
62
 –
–
 
 
 
Current assets
 
 
 
Current receivables
 
 
 
Accounts receivable
*
 –
 –
 –
 –
5,834
7,460
Notes receivable
*
 –
 –
 –
 –
184
218
Other receivables
*
 –
 –
 –
 –
3,029
3,801
Accrued income
*
 –
 –
 –
 –
96
118
Derivative assets
2
94
47
495
146
 –
 –
 
 
 
Current deposits
 
 
 
Deposits with banks
*
 –
 –
 –
 –
1,160
205
Bonds and other securities
1
1,447
650
 –
 –
 –
 –
Debt instruments
*
 –
 –
 –
 –
4
4
Other deposits
*
 –
 –
 –
 –
7
14
 
 
 
Cash and cash equivalents
*
 –
 –
 –
 –
5,150
5,594
Total financial assets
1,546
704
2,176
286
15,464
17,414
* Valued at amortised cost.
Valuation hierarchy level 1 is according to quoted prices in active markets for identical assets and liabilities.
Valuation hierarchy level 2 is out of directly or indirectly observable market data outside level 1.
Derivatives measured through other comprehensive income only relate to 
cash flow hedges.
All of the ﬁnancial instruments above sum up either to the corresponding 
item in the statement on ﬁnancial position or to the item speciﬁed in the 
notes referred to in the statement on ﬁnancial position. The risks linked to 
these ﬁnancial instruments including any concentrations of risk are pre-
sented in the sections on risks on pages 108–112. 
Result of ﬁnancial instruments
The result of the bonds and other current and non-current securities measured 
at fair value through profit or loss is found in Note 10 as fair value changes in 
securities.
The result of the derivative assets measured at fair value through proﬁt or 
loss of SEK 53 (34) million has affected exchange gains in Note 11 with SEK 
53 (34) million.
The result of financial assets measured at amortised cost is presented in 
Note 11 as other interest income for deposits with banks, other deposits and 
cash and cash equivalents. The other financial assets measured at amortised 
cost do not generate a result but only a cash-in of the principal amount.
The result of the derivative liabilities measured at fair value through proﬁt or loss 
of SEK -4 (-2) million has affected cost of goods sold with SEK -4 (-2) million.
The result of the ﬁnancial liabilities measured at amortised cost is presented 
in Note 11 as other interest costs for the liabilities to credit institutions etc. 
The other ﬁnancial liabilities measured at amortised cost do not generate a 
result but only a cash-out of the principal amount.
The result of the derivative assets and liabilities measured at fair value 
through other comprehensive income is reported as part of other compre-
hensive income in the consolidated comprehensive income statement.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

126
Note 15.   Maturity analysis of derivatives
The future undiscounted cash flows for the different types of derivatives are 
shown in the following three graphs:
Note 14.   Fair value of financial instruments
The fair value changes in shares in external companies are made under other 
comprehensive income and amounts to SEK -125 (0) million, see the con-
solidated comprehensive income statement. 
The fair value changes in marketable securities are made on the line divi-
dends and other ﬁnancial income and costs in the consolidated comprehen-
sive income statement and amounts to SEK -45 (25) million, see Note 10.
The net of derivative assets and derivative liabilities in the consolidated ﬁ-
nancial position is a net asset (net liability) of SEK 672 (-88) million, which are 
speciﬁed below:
Fair value of derivatives
Consolidated
Difference between con-
tracted rate and current rate
SEK millions
Currency pairs
2020
2019
Derivative assets/liabilities
 
    Foreign exchange  
forward contracts:
EUR
USD
77
-20
EUR
SEK
197
20
EUR
AUD
-1
0
EUR
CAD
1
-1
EUR
CNY
8
47
EUR
DKK
0
-1
EUR
GBP
1
1
EUR
JPY
1
5
EUR
SGD
0
-1
USD
CAD
-1
-1
USD
DKK
37
-21
USD
SEK
1
0
USD
SGD
1
1
DKK
NOK
2
15
DKK
SEK
2
1
NOK
EUR
-7
0
NOK
SEK
 –
4
NOK
USD
271
-152
CNY
JPY
1
0
CNY
SEK
-19
-1
CNY
USD
13
4
GBP
SEK
 –
-2
JPY
NOK
16
-8
RUB
SEK
 –
2
Other
Other
2
0
Subtotal
603
-108
   Currency options
18
7
   Interest Rate Swaps
 –
-1
   Metal forward contacts
55
15
   Electricity futures
-4
-1
Total, corresponding to a net derivative 
asset (+) or liability (-)
672
-88
For currency options and electricity futures hedge accounting has not been 
applied. For foreign exchange forward contracts, interest rate swaps and 
metal forward contracts hedge accounting has been applied when the 
conditions for hedge accounting have been fulfilled.
The fair value adjustment of derivatives is made through other compre-
hensive income if hedge accounting can be applied and the derivatives are 
effective. In all other cases the fair value adjustment is made above net in-
come. The corresponding entries are made on derivative assets and liabili-
ties and not on the underlying ﬁnancial instruments in the statement on ﬁ-
nancial position.
0
1,000
2,000
3,000
4,000
5,000
6,000
0
3
6
9
12
15
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
3
6
9
12
15
18
24
36
>36
Months
4,555
-4,326
2,542
-2,352
4,957
-4,756
2,256
-2,093
1,065
-937
886
-818
1,213
-1,156
13
-12
3
6
9
12
15
18
24
36
>36
Months
Positive cash flows
Negative cash flows
SEK millions
SEK millions
Maturity analysis for currency derivatives
Maturity analysis for metal derivatives
Maturity analysis for electricity futures
 
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
3
6
9
12
15
18
24
36
>36
Months
SEK millions

127
Notes
Note 16.   Current and deferred taxes
Tax on this year's net income and other taxes
Consolidated
SEK millions
2020
2019
Major components of the Group's tax cost
 
Current tax cost
-1,598
-1,859
Adjustment for current taxes on prior periods
-92
-12
Deferred tax costs/income on changes in  
temporary differences
345
196
Deferred tax costs/income on changes in tax 
rates or new taxes
26
2
Previously unrecognised tax assets related to 
tax losses and tax credits
0
0
Previously unrecognised deferred tax assets 
related to tax losses, tax credits and temporary 
differences
23
0
Deferred tax cost from the write down or reversal 
of a previous write down of a deferred tax asset
-35
-3
Dividend distribution tax
-41
0
Other taxes
-25
-37
Total tax cost
-1,397
-1,713
Other taxes are mainly referring to wealth tax.
Tax on this year's other comprehensive income
Consolidated
SEK millions
2020
2019
Major components of the Group's tax cost
 
Deferred tax on:
 
  Cash flow hedges
-154
-68
  Market valuation of external shares
0
0
  Translation difference
78
-7
  Revaluations of defined benefit obligations
87
11
Total tax cost
11
-64
The difference between the tax costs of the group and the tax cost based 
upon applicable tax rates can be explained as follows:
Tax cost reconciliation
Consolidated
SEK millions
2020
2019
Result after financial items
4,977
7,221
Tax according to applicable tax rates
-1,263
-1,803
Tax effect of:
 
Non-deductible costs
-318
-26
Non-taxable income
148
124
Differences between reported official depreciation 
and depreciation according to tax rules
5
3
Differences between reported other official 
appropriations and other appropriations 
according to tax rules
-18
29
Tax losses and tax credits
30
11
Adjustment for current tax on prior periods
59
-11
Adjustment deferred tax
26
-3
Dividend distribution tax
-41
0
Other
-25
-37
Total tax costs
-1,397
-1,713
Alfa Laval has provisions for uncertain tax positions and they are booked as 
a part of current tax liabilities when for instance a local tax audit or a taxation 
decision indicate an increased tax burden and the company makes the 
judgement that the tax authority wholly or partially can gain success in the 
future litigation. 
Temporary differences exist when there is a difference between the book value 
and the tax base of assets and liabilities. The Group's temporary differences 
have resulted in a deferred tax asset or a deferred tax liability relating to the 
following assets and liabilities: 
Deferred tax assets and liabilities
Consolidated
2020
2019
SEK millions
Assets
Liabilities
Assets
Liabilities
Relating to:
 
 
Intangible non-current assets 
13
660
7
771
Tangible non-current assets
61
158
56
194
Inventory
146
33
157
43
Other current assets
3
16
6
16
Financial assets
5
137
36
46
Short term liabilities
1,596
10
1,674
33
Tax losses and tax credits *
22
15
5
–
Other
23
601
3
702
Subtotal
1,869
1,630
1,944
1,805
Possible to net
-77
-77
-143
-143
Total deferred taxes
1,792
1,553
1,801
1,662
*  The Group has reported a deferred tax asset on unused tax losses and tax grants of 
SEK 140 (16) million. These unused tax losses and tax grants are essentially not  
restricted in time.
In the Group there are temporary differences and unused tax losses and tax 
credits of SEK 416 (743) million that have not resulted in corresponding de-
ferred tax assets, since these are not likely to be used. The temporary differ-
ences are mainly relating to pensions, where the date of payment is so far into 
the future that considering discounting and uncertainty concerning future profit 
levels no asset is deemed to exist. The unused tax losses and tax grants are 
essentially not restricted in time, but the tax losses that can be utilised per year 
can be restricted to a certain proportion of the taxable result.
The nominal tax rate has changed in the following countries between 2019 and 
2020 or will change during 2021.
Tax rates by country
Consolidated
Percent
2021
2020
2019
Belgium
25.0
29.0
29.0
Colombia
31.0
33.0
33.0
France
28.0
28.0
32.0
Greece
24.0
24.0
29.0
Sweden
20.6
21.4
21.4
The tax rates for 2020 and 2019 have been used to calculate the actual tax 
each year, while the tax rates for 2021 and 2020 have been used to calcu-
late the deferred tax for 2020 and 2019 respectively.
 The Group's normal effective tax rate is approximately 26 (26) percent 
based on taxable result, and it is calculated as a weighted average based on 
each subsidiary’s part of the result before tax. One-time items can however 
increase or decrease the tax rate for an individual year.
The total tax cost for 2020 has been increased by the following non- 
recurring items:
–  the tax effect of SEK 141 million in total from non deductible write downs 
on financial non-current assets and goodwill and
–  withholding tax of SEK 38 million on dividends from India.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

128
Tax cost per country/district
Consolidated
2020
2019
SEK millions (unless otherwise stated)
Earnings before 
tax and received 
dividends
Tax cost
Tax percentage (%)
Earnings before 
tax and received 
dividends
Tax cost
Tax percentage (%)
Top ten countries/districts
 
 
 
China
1,209
-276
22.8%
1,263
-330
26.1%
Norway
1,241
-271
21.8%
1,680
-370
22.0%
Sweden
716
-183
25.6%
2,050
-401
19.6%
Netherlands
508
-178
35.1%
1,090
-289
26.5%
Denmark
404
-84
20.9%
415
-98
23.7%
India
285
-69
24.2%
425
-138
32.5%
Japan
217
-66
30.4%
165
-61
37.1%
France
112
-49
43.9%
251
-88
35.1%
Brazil
144
-49
33.8%
134
-41
30.6%
Hong Kong
65
-42
64.7%
53
-28
53.0%
Total top ten countries/districts
4,901
-1,267
25.9%
7,526
-1,844
24.5%
 
 
 
Other countries/districts
 
 
 
With a positive result
1,057
-172
16.2%
1,165
-277
23.7%
With losses
-353
-24
6.7%
-375
-14
3.7%
 
 
 
 
 
 
Total all countries/districts
5,605
-1,463
26.1%
8,316
-2,135
25.7%
 
 
 
Consolidation entries
 
 
 
Elimination of appropriations
-50
11
22.0%
-519
110
21.2%
Amortisation of step-up values
-855
195
22.8%
-980
190
19.4%
Write down of goodwill
-360
–
–
–
–
N/A
Central provisions and consolidation adjustments
637
-140
22.0%
404
122
-30.2%
Total
4,977
-1,397
28.1%
7,221
-1,713
23.7%
The above table presents the earnings before tax and received dividends, 
the tax cost and the tax percentage per country for the top ten countries/
districts separately and the others grouped under profit generating and loss-
making respectively and the consolidation entries in order to arrive at the to-
tal. The local results include appropriations. The reason why the result is be-
fore received dividends is that these mostly are non-taxable. The top ten 
countries/districts are defined as the ten countries/districts with the highest 
tax cost in 2020. The comparison figures 2019 are for these ten countries/
districts, although they might not have been among the ten countries/dis-
tricts with highest tax cost also in 2019.
Observe that individual companies in the top ten countries/districts and in 
the group with a positive result can report losses. The group with losses can 
contain individual companies with profits. Also observe that the presented 
result is without correction for any non-deductible costs and non-taxable 
revenues outside received tax free dividends.
Companies with losses in countries/districts without tax pooling might 
have unused tax losses that have not resulted in a corresponding deferred 
tax asset, since these are not likely to be used. The lack of such a deferred 
tax income in these cases has an impact on the tax percentage in the con-
cerned countries/districts.
Note 17.   Goodwill and step-up values – acquisition of businesses
The allocation of step-up values to tangible and intangible assets and the residual goodwill in effect means that all acquisitions are valued at market. In order 
to separate out this valuation effect Alfa Laval focuses on EBITA, where any amortisation of step-up values is excluded. The development of these step-up val-
ues and any goodwill is shown in the table below. 
Movement schedule
Consolidated
 
 
SEK millions
Opening 
balance 2020
Acquisitions
Sold
Write  
down
Planned  
depreciation/ 
amortisation
Translation  
difference
Closing
balance 2020
Buildings
256
 –
 –
 –
-33
-15
208
Land and land improvements
-72
 –
 –
 –
–
12
-60
Patents and unpatented know-how
1,078
41
 –
 –
-317
-85
717
Trademarks
1,954
10
 –
 –
-505
-158
1,301
Subtotal step-up values
3,216
51
 –
 –
-855
-246
2,166
 
 
 
 
 
 
 
Goodwill
21,112
18
-50
-360
 –
-1,640
19,080
 
 
 
 
 
 
 
Total
24,328
69
-50
-360
-855
-1,886
21,246
During 2020 the Group has not recorded any impairment losses related to step-up values. 
There is no deferred tax liability calculated on the goodwill. The deferred tax liability on the other step-up values is SEK 398 (595) million.
For assets sold, net gains or losses are recognised on the cost basis including any related step-up value.
The next table shows each acquisition separately. Any later adjustments to the allocations are referred to the original year of the acquisition. The ﬁgures for 
the allocations are based on the prevailing rates at the time the transactions took place and any change in exchange rates until December 31, 2020 is shown 
as a translation difference. The corresponding presentation by asset type is found in Notes 18 and 19.

129
Notes
Acquisition of businesses since 2000
Consolidated
SEK millions
Buildings
Land and land 
improvements
Inventory
Patents and 
unpatented 
know-how
Trademarks
Other
Total  
step-up  
values
Goodwill
Total
Year
Businesses
2000
Alfa Laval Holding
1,058
-228
340
1,280
461
1,112
4,023
3,683
7,706
2002
Danish Separation Systems
 –
 –
 –
 –
 –
 –
 –
118
118
2003
Toftejorg
1
 –
 –
 –
 –
 –
1
35
36
2005
Packinox
 –
 –
6
99
183
 –
288
253
541
2006
Tranter
17
 –
6
180
265
 –
468
530
998
2007
AGC Engineering
 –
 –
 –
 –
12
 –
12
20
32
Helpman
9
8
 –
36
 –
 –
53
4
57
Public offer Alfa Laval (India)
 –
 –
 –
 –
 –
 –
 –
441
441
DSO Fluid Handling
 –
 –
 –
 –
39
 –
39
42
81
 
Fincoil
 –
 –
 –
233
 –
 –
233
241
474
2008
Høyer Promix A/S
 –
 –
 –
 –
 –
 –
 –
16
16
Nitrile India Pvt Ltd
 –
 –
 –
 –
 –
 –
 –
6
6
Standard Refrigeration
 –
 –
5
166
 –
 –
171
152
323
Pressko AG
 –
 –
1
 –
 –
 –
1
69
70
Hutchison Hayes Separation
 –
 –
1
95
49
 –
145
46
191
P&D's Plattvärmeväxlarservice
 –
 –
 –
 –
 –
 –
 –
10
10
 
Ageratec
 –
 –
 –
 –
 –
 –
 –
44
44
2009
Two providers of parts & service
 –
 –
 –
 –
291
 –
291
210
501
Onnuri Industrial Machinery
 –
 –
 –
40
39
 –
79
48
127
HES Heat Exchanger Systems
 –
 –
 –
83
 –
 –
83
59
142
Public offer Alfa Laval (India)
 –
 –
 –
 –
 –
 –
 –
311
311
Termatrans
 –
 –
 –
 –
7
 –
7
6
13
Tranter acquisitions in Latin America
 –
 –
 –
 –
20
 –
20
16
36
ISO Mix
 –
 –
 –
22
 –
 –
22
 –
22
 
LHE
 –
 –
 –
298
297
 –
595
344
939
2010
Champ Products
 –
 –
 –
15
14
 –
29
2
31
A leading U.S. service provider 
 –
 –
 –
 –
134
 –
134
82
216
G.S Anderson
 –
 –
 –
35
 –
 –
35
23
58
Astepo
 –
 –
 –
24
15
 –
39
8
47
Si Fang Stainless Steel Products
 –
 –
 –
27
16
 –
43
42
85
Definox
 –
 –
 –
4
5
 –
9
2
11
 
Olmi
 –
 –
37
58
32
 –
127
 –
127
2011
Service company in the U.S.
 –
 –
 –
 –
150
 –
150
126
276
 
Aalborg Industries
248
 –
 –
430
860
 –
1,538
3,630
5,168
2012
Vortex Systems
 –
 –
 –
148
 –
 –
148
225
373
Ashbrook Simon-Hartley
 –
 –
 –
86
 –
 –
86
55
141
Gamajet Cleaning Systems
 –
 –
 –
47
 –
 –
47
37
84
 
Air Cooled Exchangers (ACE)
 –
 –
 –
585
 –
 –
585
346
931
2013
Niagara Blower Company
 –
 –
 –
202
 –
 –
202
203
405
2014
Frank Mohn AS
 –
 –
38
1,160
3,793
–
4,991
9,831
14,822
 
CorHex Corp
 –
 –
 –
15
 –
 –
15
 –
15
2015
Aftermarket company (separation)
 –
 –
 –
 –
32
 –
32
24
56
 
K-Bar Parts LLC 
 –
 –
 –
 –
16
 –
16
 –
16
2019
Airec
 –
 –
 –
60
 –
 –
60
22
82
2020
WCR Benelux
 –
 –
 –
 –
10
 –
10
3
13
Sandymount
 –
 –
 –
41
 –
 –
41
15
56
Accumulated during the period
 
 
 
 
 
 
 
 
 
Realised
-542
122
-435
–
–
-123
-978
-50
-1,028
Write down
-6
-9
–
-89
-5
 –
-109
-941
-1,050
Planned depreciation/amortisation
-569
–
–
-4,943
-5,224
-993
-11,729
-612
-12,341
Translation difference
-8
47
1
280
-210
4
114
-697
-583
Closing balance
208
-60
 –
717
1,301
 –
2,166
19,080
21,246
The acquisition of the Alfa Laval Holding AB group in connection with the acquisition by Industri Kapital of the Alfa Laval Group from Tetra Laval on August 24, 
2000 is shown on the first row.
“Other” relates to step-up values from 2000 for “Machinery” of SEK 548 million and “Equipment” of SEK 452 million that have been fully depreciated or 
realised, for “Research and development” of SEK 54 million and “Capital gain (Industrial Flow)” of SEK 42 million that have been fully realised and for “Con-
struction in process” of SEK 16 million that has been transferred to “Machinery”.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

130
Acquisition of businesses
During 2020
On December 31, 2020 Alfa Laval has acquired Sandymount, a US-based 
beverage technology company with a unique and patented membrane tech-
nology to concentrate beer. The technology in combination with Alfa Laval’s 
extensive product range, will open up interesting business opportunities for 
the company and enable a more sustainable beer-delivery supply chain. 
Sandymount’s patented membrane technology, Revos™, in combination 
with Alfa Laval’s extensive product range for beer production, will enable 
beer producers to deliver high quality beer in concentrated form. The solu-
tion addresses the transportation inefﬁciencies in beer supply where beer re-
mains one of the few water-laden products distributed as a ‘mostly water’ 
from producer to consumer. The newly acquired company will be integrated 
into the Business Unit Food Systems in the Food & Water Division. 
The purchase price is SEK 49 million, out of which all has been paid in 
cash. The costs directly linked to the acquisition (fees to lawyers, due dili-
gence and assisting counsel) come in addition to this and have amounted to 
SEK 3 million, which is reported as other operating costs. Liquid assets of 
SEK 0 million in the acquired company were taken over. The impact on the 
cash ﬂow is thus SEK -52 million. Out of the difference between the pur-
chase price paid and the net assets acquired SEK 41 million is allocated to 
patents and un-patented know-how, while the residual SEK 15 million is al-
located to goodwill. The goodwill is relating to estimated synergies in pro-
curement, logistics and corporate overheads and the company’s ability to 
over time recreate its intangible assets. The value of the goodwill is still pre-
liminary. The step-up value for patents and un-patented know-how is amor-
tised over 10 years. From the date of the acquisition the company has 
added SEK - million in orders received, SEK - million in invoicing and SEK - 
million in adjusted EBITA to Alfa Laval. If the company had been acquired at 
January 1, 2020 the corresponding ﬁgures would have been SEK - million, 
SEK - million and SEK -10 million respectively. At the end of December 
2020, the company had 2 employees.
A smaller operation, WCR Benelux BV in the Netherlands, was acquired 
on July 1, 2020. The purchase price is SEK 13 million, out of which SEK 10 
million has been paid in cash and SEK 3 million is retained for a period of up 
to 1 year. The retained part of the purchase price is contingent on certain 
warranties in the contract not being triggered. The  probable outcome is 
SEK 3 million, which is also the fair value since the contingent consideration 
is to be paid in cash. The costs directly linked to the acquisition (fees to law-
yers, due diligence and assisting counsel) come in addition to this and have 
amounted to SEK 1 million, which is reported as other operating costs. Liq-
uid assets of SEK 1 million in the acquired company were taken over. The 
impact on the cash ﬂow is thus SEK -10 million. Out of the difference be-
tween the purchase price paid and the net assets acquired SEK 10 million is 
allocated to the WCR trademark, while the residual SEK 3 million is allocated 
to goodwill. The goodwill is relating to estimated synergies in procurement, 
logistics and corporate overheads and the company’s ability to over time 
recreate its intangible assets. The value of the goodwill is still preliminary. The 
step-up value for the trademark is amortised over 10 years. From the date of 
the acquisition the company has added SEK 11 million in orders received, 
SEK 8 million in invoicing and SEK -0 million in adjusted EBITA to Alfa Laval. 
If the company had been acquired at January 1, 2020 the corresponding ﬁg-
ures would have been SEK 16 million, SEK 14 million and SEK -1 million re-
spectively. At the end of December 2020, the company had 6 employees.
All acquired assets and liabilities were reported according to IFRS at the 
time of the acquisitions.
During 2019
On December 18, 2018 Alfa Laval announced that it has signed an agree-
ment to acquire Airec – a Malmö, Sweden-based innovation company with 
patented technology for dimple asymmetry heat exchangers. The new com-
pany will be integrated into the Brazed & Fusion Bonded Heat Exchangers 
unit of the Energy Division. The acquired technology represents untapped 
opportunities in combination with Alfa Laval’s existing heat transfer know-
how, manufacturing footprint and global market presence. The transaction 
was closed on January 2, 2019. 
The purchase price is SEK 100 million, out of which SEK 60 million has 
been paid in cash and SEK 40 million is retained for a period of 1-2 years. 
The retained part of the purchase price is contingent on certain warranties in 
the contract not being triggered or that certain proﬁtability goals are fulﬁlled. 
The outcome can be anything between SEK 0 million and SEK 40 million, 
but the probable outcome is SEK 20 million, which is also the fair value since 
the contingent consideration is to be paid in cash. The costs directly linked 
to the acquisition (fees to lawyers, due diligence and assisting counsel) 
come in addition to this and have amounted to SEK 1 million, which is re-
ported as other operating costs. The impact on the cash ﬂow is thus SEK 
-61 million. Out of the difference between the purchase price paid and the 
net assets acquired SEK 60 million is allocated to patents and un-patented 
know-how, while the residual SEK 22 million is allocated to goodwill. The 
goodwill is relating to estimated synergies in procurement, logistics and cor-
porate overheads and the company’s ability to over time recreate its intangi-
ble assets. The value of the goodwill has been ﬁnalised in 2020. The step-up 
value for patents and un-patented know-how is amortised over 10 years. 
From the date of the acquisition the company has added SEK 13 million in 
orders received and SEK 11 million in invoicing to Alfa Laval. At the end of 
December 2019, the number of employees was 10.
All acquired assets and liabilities were reported according to IFRS at the 
time of the acquisitions.
Impairment testing
Prior to a possible divestment, closure or restructuring an impairment test 
has been made during 2020 concerning certain oil & gas related businesses, 
which showed a need to write down the entire goodwill for these businesses. 
Write down of goodwill has thus been made with SEK -360 million, which is 
reported as a comparison distortion item among other operating costs. The 
write down of goodwill and the restructuring costs are part of the programme 
for adapting the organisation to changing market fundamentals that was 
announced on December 16, 2020. The program is mainly addressing 
structural imbalances in speciﬁc parts of the oil & gas business as well as 
parts of the Marine business. 
In addition, an impairment test has been performed at the end of 2020 in-
dicating that there is not any need to further write down the goodwill. 
Three of Alfa Laval’s operating segments, the three business divisions 
“Energy”, “Food & Water” and ”Marine” have been identiﬁed as the cash-
generating units within Alfa Laval. Technically a recently acquired business 
activity could be followed independently during an initial period, but acquired 
businesses are normally integrated into the divisions at a fast rate. This 
means that the independent traceability is lost fairly soon and then any inde-
pendent measurement and testing becomes impracticable. 
The recoverable amount of the cash-generating units is based on their 
value in use, which is established by calculating the net present value of fu-
ture cash ﬂows. The net present value is based on the projected EBITDA ﬁg-
ures for the next ﬁve years, less projected investments and changes in oper-
ating capital during the same period and thereafter the perceived expected 
average industry growth rate. 
This projection is based on the following components:
–  The projection for 2021 is based on the Group's normal 12 month revolv-
ing ”Forecast” reporting. This is based on a very large number of rather de-
tailed assumptions throughout the organisation concerning the business 
cycle, volume growth, market initiatives, product mix, currency rates, cost 
development, cost structure, R&D etc. 
–  The projection for the years 2022 till 2025 is based on Management’s gen-
eral assumptions concerning the business cycle, volume growth, market 
initiatives, product mix, currency rates, cost development, cost structure, 
R&D etc. 
–  The projection for the years 2026 and onwards is based on the perceived 
expected average industry growth rate. 
The assumptions used for the projections reflect past experiences or infor-
mation from external sources. 
The used discount rate is the pre-tax weighted average cost of capital 
(WACC) of 9.69 (9.19) percent. 
There exists no reasonably possible change in a key assumption in the 
impairment test that would cause the carrying amount to exceed the recoverable 
amount. The reason is that the recoverable amounts with a very good margin 
exceed the carrying amounts. Due to this a sensitivity analysis is not presented.
Alfa Laval does not have any intangible assets with indefinite useful lives 
other than goodwill. 
Goodwill has been allocated to the following cash-generating units:
Goodwill
Consolidated
SEK millions
2020
2019
Energy
2,953
3,584
Food & Water
2,371
2,637
Marine
13,756
14,891
Total
19,080
21,112

131
Notes
Note 18.   Intangible non-current assets 
Patents and unpatented know-how
Consolidated
 SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
6,393
6,171
Purchases
38
3
Acquisition of businesses
41
60
Sales/disposals
-8
-9
Translation difference
-952
168
Closing balance
5,512
6,393
 
Accumulated amortisation
 
Opening balance
-5,289
-4,804
Sales/disposals
8
9
Reclassifications
0
0
Amortisation of step-up value
-317
-367
Amortisation for the year
-4
-6
Translation difference
866
-121
Closing balance
-4,736
-5,289
 
Closing balance, net book value
776
1,104
Trademarks
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
7,124
6,942
Acquisition of businesses
10
–
Divestment of businesses
-44
–
Translation difference
-591
182
Closing balance
6,499
7,124
 
Accumulated amortisation
 
Opening balance
-5,170
-4,468
Divestment of businesses
44
–
Reclassifications
–
6
Amortisation of step-up values
-505
-580
Translation difference
433
-128
Closing balance
-5,198
-5,170
 
Closing balance, net book value
1,301
1,954
Goodwill
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
22,331
21,719
Goodwill in connection with acquisition 
of businesses
18
22
Divestment of businesses
-50
–
Translation difference
-1,725
590
Closing balance
20,574
22,331
 
Accumulated amortisation
 
Opening balance
-1,219
-1,182
Write down of goodwill
-360
–
Translation difference
85
-37
Closing balance
-1,494
-1,219
 
Closing balance, net book value
19,080
21,112
Licenses, renting rights and similar rights
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
210
223
Purchases
3
1
Sales/disposals
-19
-12
Reclassifications
-1
-6
Translation difference
-10
4
Closing balance
183
210
 
Accumulated amortisation
 
Opening balance
-187
-191
Sales/disposals
19
12
Reclassifications
1
1
Amortisation for the year
-5
-4
Translation difference
9
-5
Closing balance
-163
-187
 
Closing balance, net book value
20
23
Internally generated intangible assets
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
54
–
Acquisition of businesses
–
5
Expenses
57
49
Translation difference
–
–
Closing balance
111
54
 
Accumulated amortisation
 
Opening balance
-1
–
Amortisation for the year
-3
-1
Translation difference
–
–
Closing balance
-4
-1
 
Closing balance, net book value
107
53
Internally generated intangible assets are referring to capitalised IT costs and 
acquired capitalised development cost related to R&D.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

132
Machinery and other technical installations
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
7,813
7,219
Purchases
365
335
Sales/disposal
-389
-281
Reclassifications
304
331
Translation difference
-543
209
Closing balance
7,550
7,813
 
Accumulated depreciation
 
Opening balance
-5,676
-5,464
Sales/disposals
346
227
Reclassifications
-8
19
Depreciation for the year
-362
-339
Write down
-1
-9
Translation difference
380
-110
Closing balance
-5,321
-5,676
 
Closing balance, net book value
2,229
2,137
Equipment, tools and installations
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
2,906
2,811
Purchases
249
153
Sales/disposal
-115
-130
Reclassifications
69
2
Translation difference
-183
70
Closing balance
2,926
2,906
 
Accumulated depreciation
 
Opening balance
-2,236
-2,178
Sales/disposals
103
113
Reclassifications
4
34
Depreciation for the year
-145
-147
Write down
0
0
Translation difference
149
-58
Closing balance
-2,125
-2,236
 
Closing balance, net book value
801
670
Construction in progress and advances to suppliers concerning 
property, plant and equipment
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
505
634
Purchases
259
632
Reclassifications
-423
-771
Translation difference
-80
10
Closing balance
261
505
 
Closing balance, net book value
261
505
Right-of use asset real estate
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
2,883
193
IFRS 16 adjustment
–
2,463
New or adjusted leases
130
296
Sales/disposal
-28
-24
Reclassifications
-201
-100
Translation difference
-208
55
Closing balance
2,576
2,883
 
Accumulated depreciation
 
Opening balance
-392
-69
Sales/disposals
15
16
Reclassifications
81
4
Depreciation for the year
-350
-328
Translation difference
45
-15
Closing balance
-601
-392
 
Closing balance, net book value
1,975
2,491
Note 19.   Property, plant and equipment 
Real estate
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
6,042
5,402
Purchases
261
164
Sales/disposal
-164
-29
Write down
–
-24
Reclassifications
262
368
Reclassification to assets for sale
-65
–
Translation difference
-383
161
Closing balance
5,953
6,042
 
Accumulated depreciation
 
Opening balance
-3,094
-2,819
Sales/disposals
87
25
Reclassifications
-97
-5
Reclassification to assets for sale
10
–
Depreciation of step-up value
-33
-33
Depreciation for the year
-179
-159
Translation difference
231
-103
Closing balance
-3,075
-3,094
 
Closing balance, net book value
2,878
2,948
Non-current assets held for sale
Within Alfa Laval these assets are normally relating to real estate. 
A small property in France is empty and has been for sale for several 
years. It is not expected to be sold within the next year. Five properties in In-
dia are for sale and are expected to be sold within the next year. The latter 
have therefore been classiﬁed as current assets held for sale with SEK 55 (-) 
million. The fair value of the properties for sale exceeds the book value by 
approximately SEK 24 (2) million.

133
Noter
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Right-of use asset machinery
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
87
40
IFRS 16 adjustment
–
30
New or adjusted leases
15
17
Sales/disposal
-6
0
Reclassifications
-30
0
Translation difference
-8
0
Closing balance
58
87
 
Accumulated depreciation
 
Opening balance
-59
-38
Sales/disposals
5
–
Reclassifications
32
0
Depreciation for the year
-17
-21
Translation difference
5
0
Closing balance
-34
-59
 
Closing balance, net book value
24
28
Right-of use asset equipment, tools and installations
Consolidated
SEK millions
2020
2019
Accumulated acquisition values
 
Opening balance
235
4
IFRS 16 adjustment
–
178
New or adjusted leases
75
62
Sales/disposal
-27
-6
Reclassifications
2
-3
Translation difference
-14
0
Closing balance
271
235
 
Accumulated depreciation
 
Opening balance
-71
-3
Sales/disposals
22
2
Reclassifications
-6
-2
Depreciation for the year
-69
-68
Translation difference
6
0
Closing balance
-118
-71
 
Closing balance, net book value
153
164
Note 20.   Other non-current assets
Shares in subsidiaries, joint ventures and other companies
Consolidated
Parent company
SEK millions
2020
2019
2020
2019
Shares in subsidiaries
 –
–
4,669
4,669
Shares in joint ventures
85
63
–
–
Shares in other companies
1,490
78
–
–
Total
1,575
141
4,669
4,669
Alfa Laval does not hold any shares in unconsolidated structured entities.
The consolidated ﬁnancial statements include the parent company Alfa 
Laval AB (publ) and the subsidiaries in which it has a decisive inﬂuence, 
which in all cases refer to companies where the parent company directly or 
indirectly had an ownership of more than 50 percent during the period. 
These are consolidated according to the purchase method and are referred 
to as subsidiaries. Most of the subsidiaries are owned to 100 percent and 
only 4 (5) companies have non-controlling interests, see Note 12. The sub-
sidiaries are displayed in the table on page 134–136. Since all consolidated 
companies are owned to more than 50 percent there is no risk that judge-
ments if a decisive inﬂuence exists or not at ownerships below 50 percent 
means that companies from time to time are included or not included in the 
consolidation. 
Alfa Laval also has interests in 3 (3) small joint ventures, out of which one 
has a fully owned subsidiary, that are consolidated according to the equity 
method since no decisive inﬂuence exists. These are displayed in a separate 
table on page 136. The risks associated with joint ventures are basically 
business oriented and are not materially different than the risks linked to 
subsidiaries, with one exception. The exception relates to the risk of disa-
greeing with the other joint venture partner concerning for instance larger in-
vestments, ﬁnancing and future direction for market penetration and product 
development, which could result in a sub-optimal development of the opera-
tions. Since Alfa Laval’s joint ventures are of marginal signiﬁcance for the 
Group as a total this risk is judged to be small.

134
The share of capital in the below tables is in all cases the same as the share of voting rights.
The below speciﬁcation of shares contains some simpliﬁcations, for instance in connection with ownership in multiple layers or when the ownership is split 
on several owners or at cross-holdings. This is in order not to unnecessarily burden the presentation. A complete speciﬁcation of shares can be ordered by 
contacting Alfa Laval’s head ofﬁce in Lund or via the Swedish Companies Registration Ofﬁce (Bolagsverket).
Specification of shares in subsidiaries
 
 
 
 
 
 
 
Registration 
 
Number of 
Share of  
Book value
Company name 
 
 
 
number 
Domicile 
shares 
capital % 
SEK millions
Alfa Laval Holding AB 
 
 
556587–8062 
Lund, Sweden 
8,191,000 
100 
4,461
 
Alfa Laval NV  
 
 
 
Maarssen, Netherlands 
887,753 
100 
 –
 
 
Alfa Laval Inc.  
 
 
Newmarket, Canada 
1,000,000 
67 
 –
 
 
Alfa Laval S.A. DE C.V. 
 
Tlalnepantla, Mexico 
45,057,057 
100 
 –
 
 
Alfa Laval S.A.  
 
 
San Isidro, Argentina 
1,223,967 
95 
 –
 
 
Alfa Laval Ltda  
 
 
Sao Paulo, Brazil 
21,129,066 
100 
 –
 
 
 
Framo do Brasil Ltda.  
 
Rio de Janeiro, Brazil 
14,850 
4.67 
 –
 
 
Alfa Laval SpA  
 
 
Santiago, Chile 
2,735 
100 
 –
 
 
 
Ashbrook Chile S.A. 
 
Santiago, Chile 
579,999 
100 
 –
 
 
Alfa Laval S.A.  
 
 
Bogota, Colombia 
11,563 
95 
 –
 
 
Alfa Laval S.A.  
 
 
Lima, Peru 
4,346,832 
100 
 –
 
 
Inmobililaria Tanguis S.A.C. 
 
Lima, Peru 
1,499 
100 
 –
 
 
Alfa Laval Venezolana S.A. 
 
Caracas, Venezuela 
10,000 
100 
 –
 
 
 
Alfa Laval Oilﬁeld C.A. 
 
Caracas, Venezuela 
203 
81 
 –
 
 
Alfa Laval Taiwan Ltd 
 
Taipei, Taiwan 
1,499,994 
100 
 –
 
 
Alfa Laval (China) Ltd 
 
Hong Kong, China 
79,999 
100 
 –
 
 
 
Alfa Laval (Jiangyin) Manufacturing Co Ltd 
 
Jiang Yin, China 
  
100 
 –
 
 
 
 
Alfa Laval Flow Equipment (Kunshan) Co Ltd 
 
Jiangsu, China 
  
30 
 –
 
 
 
Alfa Laval Flow Equipment (Kunshan) Co Ltd 
 
Jiangsu, China 
  
70 
 –
 
 
 
Alfa Laval (Shanghai) Technologies Co Ltd 
 
Shanghai, China 
  
100 
 –
 
 
 
Wuxi MCD Gasket Co Ltd 
 
Jiang Yin, China 
  
100 
 –
 
 
 
Tranter Heat Exchangers (Beijing) Co Ltd 
 
Beijing, China 
  
100 
 –
 
 
 
Liyang Sifang Stainless Steel Products Co., Ltd  
 
Liyang City, China 
  
65 
 –
 
 
Alfa Laval Iran Ltd  
 
Teheran, Iran 
32,983 
100 
 –
 
 
Framo Korea Ltd 
 
 
Busan, South Korea 
5,000 
25 
 –
 
 
Alfa Laval Philippines Inc. 
 
Makati, Philippines 
72,000 
100 
 –
 
 
Alfa Laval Singapore Pte Ltd 
 
Singapore 
5,000,000 
100 
 –
 
 
Alfa Laval (Thailand) Ltd 
 
Bangkok, Thailand 
1,199,999 
100 
 –
 
 
Alfa Laval Middle East Ltd 
 
Nicosia, Cyprus 
40,000 
100 
 –
 
 
 
Alfa Laval Service Operations Qatar LLC 
 
Doha, Qatar 
9,800 
49 
 –
 
 
Alfa Laval Benelux NV/SA 
 
Brussels, Belgium 
98,284 
100 
 –
 
 
Alfa Laval EOOD 
 
 
Soﬁa, Bulgaria 
100 
100 
 –
 
 
Alfa Laval Slovakia S.R.O. 
 
Bratislava, Slovakia 
  
1 
 –
 
 
Alfa Laval Spol S.R.O. 
 
Prague, Czech Republic 
  
20 
 –
 
 
Alfa Laval Nordic OY 
 
Espoo, Finland 
20,000 
100 
 –
 
 
Alfa Laval Nederland BV 
 
Maarssen, Netherlands 
10,000 
100 
 –
  
  
  
Alfa Laval Benelux BV 
 
Maarssen, Netherlands 
20,000 
100 
 –
 
 
PHE Holding AB 
 
556306-2404 
Lund, Sweden 
2,500 
100 
 –
 
 
 
Tranter Heat Exchangers Canada Inc. 
 
Edmonton, Canada 
100 
100 
 –
 
 
 
Tranter Indùstria e Comércio de Equipamentos Ltda 
 
Sao Paulo, Brazil 
2,018,370 
100 
 –
 
 
 
Tranter India Pvt Ltd 
 
Pune, India 
3,009,999 
100 
 –
 
 
 
Alfa Laval India Pvt Ltd 
 
Pune, India 
1 
0 
 –
 
 
 
Alfa Laval Korea Ltd 
 
Seoul, South Korea 
36,400 
10 
 –
 
 
 
Alfa Laval Korea Holding Company Ltd 
 
Chungnam, South Korea 
13,318,600 
100 
 –
 
 
 
 
Alfa Laval Korea Ltd 
 
Seoul, South Korea 
327,600 
90 
 –
 
 
 
 
 
Alfa Laval Corhex Ltd 
 
Daejeon, South Korea 
50,000 
100 
 –
 
 
 
 
LHE Co. Ltd 
 
Gim Hae, South Korea 
4,104,000 
90 
 –
 
 
 
LHE Co. Ltd 
 
 
Gim Hae, South Korea 
456,000 
10 
 –
 
 
 
Tranter International AB 
556559-1764 
Vänersborg, Sweden 
100,000 
100 
 –
 
 
 
Multbran AB 
 
556662-3988 
Lund, Sweden 
2,723 
100 
 –
 
 
 
 
Alfa Laval India Pvt Ltd 
 
Pune, India 
1 
0 
 –
 
 
 
Breezewind AB 
556773-6532 
Lund, Sweden 
1,000 
100 
 –
 
 
 
 
Alfa Laval India Pvt Ltd 
 
Pune, India 
1 
0 
 –
 
 
Alfa Laval Corporate AB 
556007-7785 
Lund, Sweden 
13,920,000 
100 
 –
 
 
 
Alfa Laval S.A.  
 
San Isidro, Argentina 
64,419 
5 
 –
 
 
 
Alfa Laval S.A.  
 
Bogota, Colombia 
609 
5 
 –
 
 
 
Deﬁnox (Beijing) Stainless Steel Equipment Ltd 
 
Beijing, China 
  
100 
 –
 
 
 
Alfa Laval India Pvt Ltd 
 
Pune, India 
17,832,712 
100 
 –
 
 
 
Tranter India Pvt Ltd 
 
Pune, India 
1 
0 
 –
 
 
 
PT Alfa Laval Indonesia 
 
Jakarta, Indonesia 
16,240 
100 
 –
 
 
 
Alfa Laval Malaysia Sdn Bhd 
 
Shah Alam, Malaysia 
10,000 
100 
 –
 
 
 
Alfa Laval d.o.o. 
 
Trzin, Slovenia 
0 
100 
 –
 
 
 
Alfa Laval Kolding A/S 
 
Kolding, Denmark 
40 
100 
 –
 
 
 
 
Alfa Laval Nordic A/S 
 
Rödovre, Denmark 
1 
100 
 –
 
 
 
 
Alfa Laval Copenhagen A/S 
 
Söborg, Denmark 
1 
100 
 –
 
 
 
 
Alfa Laval Nakskov A/S 
 
Nakskov, Denmark 
242,713 
100 
 –
 
 
 
Alfa Laval Aalborg A/S 
 
Aalborg, Denmark 
2,560,972 
100 
 –

135
Notes
Specification of shares in subsidiaries, continued
 
 
 
 
 
 
 
Registration 
 
Number of 
Share of  
Book value
Company name 
 
 
 
number 
Domicile 
shares 
capital % 
SEK millions
 
 
 
 
Alfa Laval Aalborg Indústria e Comércio Ltda 
 
Petrópolis, Brazil 
5,969,400 
99.5 
 –
 
 
 
 
Aalborg Industries Ltda 
 
Itu, Brazil 
4,644,373 
100 
 –
 
 
 
 
Alfa Laval Qingdao Ltd 
 
Jiaozhou City, China 
 
100 
 –
 
 
 
 
Alfa Laval Aalborg Oy 
 
Rauma, Finland 
3,000 
100 
 –
  
  
  
  
Alfa Laval Nijmegen BV  
 
Nijmegen, Netherlands 
182 
100 
 –
 
 
 
 
Alfa Laval Aalborg Holding Pty Ltd 
 
North Wyong, Australia 
2,875,010 
100 
 –
 
 
 
 
 
Alfa Laval Aalborg Pty Ltd 
 
North Wyong, Australia 
225,000 
100 
 –
 
 
 
Alfa Laval Olmi SpA 
 
Suisio, Italy 
500,000 
100 
 –
 
 
 
Alfa Laval Italy Srl 
 
Milan, Italy 
  
33.3 
 –
 
 
 
Alfa Laval Nordic AS 
 
Oslo, Norway 
100 
100 
 –
 
 
 
 
Framo AS  
 
Nesttun, Norway 
95,347,695 
100 
 –
 
 
 
 
 
Framo do Brasil Ltda.  
 
Rio de Janeiro, Brazil 
303,002 
95.33 
 –
 
 
 
 
 
Framo Shanghai Ltd.  
 
Shanghai, China 
0 
100 
 –
 
 
 
 
 
Framo Korea Ltd 
 
Busan, South Korea 
15,000 
75 
 –
 
 
 
 
 
Framo Singapore PTE Ltd.  
 
Singapore 
1,000,000 
100 
 –
 
 
 
 
 
Framo Nederland BV 
 
Spijkenisse, Netherlands 
500 
100 
 –
 
 
 
 
 
 
Framo Nippon KK  
 
Tokyo, Japan 
600 
100 
 –
 
 
 
 
 
Framo Fusa AS  
 
Fusa, Norway 
86,236 
100 
 –
 
 
 
 
 
 
Framo Holsnøy AS  
 
Frekhaug, Norway 
25,000 
100 
 –
 
 
 
 
 
Framo Flatøy AS  
 
Frekhaug, Norway 
45,330 
100 
 –
 
 
 
 
 
Framo Services AS  
 
Nesttun, Norway 
10,000 
100 
 –
 
 
 
 
PHE Holding AS  
 
Nesttun, Norway 
45,000 
100 
 –
 
 
 
Alfa Laval Nordic AB 
556243-2061 
Tumba, Sweden 
1,000 
100 
 –
 
 
 
Alfa Laval Treasury International (publ) AB 
556432-2484 
Lund, Sweden 
50,000 
100 
 –
 
 
 
 
Alfa Laval India Pvt Ltd 
 
Pune, India 
1 
0 
 –
 
 
 
Alfa Laval Europe AB 
556128-7847 
Lund, Sweden 
500 
100 
 –
 
 
 
Alfa Laval Lund AB 
556016-8642 
Lund, Sweden 
100 
100 
 –
 
 
 
 
Alfa Laval India Pvt Ltd 
 
Pune, India 
1 
0 
 –
 
 
 
Alfa Laval International Engineering AB 
556039-8934 
Lund, Sweden 
4,500 
100 
 –
 
 
 
Alfa Laval Tumba AB 
556021-3893 
Tumba, Sweden 
1,000 
100 
 –
 
 
 
Alfa Laval Oilﬁeld C.A. 
 
Caracas, Venezuela 
47 
19 
 –
 
 
 
AO Alfa Laval Potok 
 
Koroljov, Russia 
31,092,939 
100 
 –
 
 
Alfa Laval Makine Sanayii ve Ticaret Ltd Sti 
 
Istanbul, Turkey 
27,001,755 
99 
 –
 
 
Alfa Laval SIA  
 
 
Riga, Latvia 
125 
100 
 –
 
 
Alfa Laval Australia Pty Ltd 
 
Homebush, Australia 
2,088,076 
100 
 –
 
 
Alfa Laval New Zeeland Pty Ltd 
 
Hamilton, New Zeeland 
1,000 
100 
 –
 
Alfa Laval Holding BV 
 
 
Maarssen, Netherlands 
60,035,631 
100 
 –
 
 
Alfa Laval (Pty) Ltd  
 
Isando, South Africa 
2,000 
100 
 –
 
 
 
Alfa Laval SA (Pty) Ltd 
 
Isando, South Africa 
100 
100 
 –
 
 
Alfa Laval Slovakia S.R.O. 
 
Bratislava, Slovakia 
  
99 
 –
 
 
Alfa Laval Spol S.R.O. 
 
Prague, Czech Republic 
  
80 
 –
 
 
Alfa Laval Holding SAS 
 
Saint-Priest, France 
2,000,000 
100 
 –
 
 
 
Alfa Laval France & North West Africa SAS  
 
Saint-Priest, France 
606,700 
100 
 –
 
 
 
Alfa Laval Moatti SAS 
 
Elancourt, France 
24,000 
100 
 –
 
 
 
Alfa Laval Spiral SAS 
 
Nevers, France 
79,999 
100 
 –
 
 
 
MCD SAS 
 
 
Guny, France 
71,300 
100 
 –
 
 
 
Alfa Laval Vicarb SAS 
 
Grenoble, France 
200,000 
100 
 –
 
 
 
 
Canada Inc. 
 
Newmarket, Canada 
480,000 
100 
 –
 
 
 
 
 
Alfa Laval Inc. 
 
Newmarket, Canada 
481,600 
33 
 –
 
 
 
 
SCI du Companil 
 
Grenoble, France 
32,165 
100 
 –
 
 
 
Alfa Laval Packinox SAS  
 
Paris, France 
348,115 
100 
 –
 
 
 
 
Ziepack SA 
 
Paris, France 
37,701 
51 
 –
 
 
 
Tranter SAS 
 
 
Nanterre, France 
  
100 
 –
  
  
  
Deﬁnox SAS 
  
 
Clisson, France 
10,000 
100 
 –
 
 
Alfa Laval Holding GmbH 
 
Glinde, Germany 
1 
100 
 –
 
 
 
Alfa Laval Mid Europe GmbH 
 
Wiener Neudorf, Austria 
1 
100 
 –
 
 
 
 
Tranter Warmetauscher GmbH 
 
Guntramsdorf, Austria 
  
100 
 –
 
 
 
Alfa Laval Mid Europe GmbH 
 
Glinde, Germany 
1 
100 
 –
 
 
 
Tranter GmbH  
 
Artern, Germany 
1 
100 
 –
 
 
 
Alfa Laval Heat Exchanger Service GmbH 
 
Frechen, Germany 
1 
100 
 –
 
 
 
Alfa Laval Mid Europe AG 
 
Dietlikon, Switzerland 
647 
100 
 –
 
 
Alfa Laval Single Member SA 
 
Holargos, Greece 
807,000 
100 
 –
 
 
Alfa Laval Kft  
 
 
Budapest, Hungary 
1 
100 
 –
 
 
Alfa Laval SpA  
 
 
Monza, Italy 
1,992,276 
99 
 –
 
 
 
Alfa Laval Italy Srl 
 
Milan, Italy 
 
66.7 
 –
 
 
WCR Benelux BV 
 
 
Veenendahl, the Netherlands 
180 
100 
 –
 
 
Alfa Laval Polska Sp.z.o.o. 
 
Warsaw, Poland 
7,600 
100 
 –
 
 
Alfa Laval Kraków Sp.z.o.o. 
 
Krakow, Poland 
80,080 
100 
 –
 
 
Alfa Laval (Portugal) Ltd 
 
Linda–A–Velha, Portugal 
  
1 
 –
 
 
Alfa Laval SRL  
 
 
Bucharest, Romania 
38,566 
100 
 –
 
 
Alfa Laval Iberia SA  
 
Madrid, Spain 
99,999 
99.999 
 –
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

136
Specification of shares in joint ventures
Company name
Registration  
number Domicile
Number of 
shares
Share of 
capital %
Book value 
SEK millions
Alfa Laval Holding AB
Alfdex AB
556647-7278 Botkyrka, Sweden
1, 000
50
66
Alfdex Kunshan Co Ltd
Kunshan, China
 
100
12
Alfa Laval Corporate AB
 
 
 
AlfaWall AB
556723-6715 Botkyrka, Sweden
500
50
7
Alfa Laval Ltd
 
 
 
 
Rolls Laval Heat Exchangers Ltd
Wolverhampton, UK
5,000
50
0
Total
 
 
 
85
Specification of shares in subsidiaries, continued
 
 
 
 
 
 
 
Registration 
 
Number of 
Share of  
Book value
Company name 
 
 
 
number 
Domicile 
shares 
capital % 
SEK millions
 
 
 
Alfa Laval (Portugal) Ltd 
 
Linda-A-Velha, Portugal 
1 
99 
 –
 
 
Alfa Laval Holdings Ltd * 
 
Camberley, UK 
14,053,262 
100 
 –
 
 
 
Alfa Laval Ltd *  
 
Camberley, UK 
11,700,000 
100 
 –
 
 
 
 
Tranter Ltd * 
 
Doncaster, UK 
10,000 
100 
 –
 
 
 
Alfa Laval Eastbourne Ltd * 
 
Eastbourne, UK 
10,000 
100 
 –
 
 
 
Alfa Laval Ashbrook-Simon Hartley Ltd * 
 
Newcastle-under-Lyme, UK 
2 
100 
 –
 
 
Alfa Laval Makine Sanayii ve Ticaret Ltd Sti 
 
Istanbul, Turkey 
1 
1 
 –
 
 
Alfa Laval USA Inc.  
 
Richmond, Virginia, USA 
1,000 
100 
 –
 
 
 
Alfa Laval US Holding Inc. 
 
Richmond, Virginia, USA 
180 
100 
 –
 
 
 
 
Alfa Laval Inc. 
 
Richmond, Virginia, USA 
44,000 
100 
 –
 
 
 
 
Alfa Laval Niagara Inc. 
 
Buffalo, New York, USA 
4,000,200 
100 
 –
 
 
 
 
Framo Houston Inc.  
 
La Porte, Texas, USA 
5,000 
100 
 –
 
 
 
 
Alfa Laval US Treasury Inc. 
 
Richmond, Virginia, USA 
1,000 
100 
 –
 
 
 
 
DSO Fluid Handling Inc. 
 
Irvington, New Jersey, USA 
100 
100 
 –
 
 
 
 
AGC Heat Transfer Inc. 
 
Bristow, Virginia, USA 
1,000 
100 
 –
 
 
 
 
Tranter Inc. 
 
Wichita Falls, Texas, USA 
1,000 
100 
 –
 
 
 
 
MCD Gaskets Inc. 
 
Richmond, Virginia, USA 
1,000 
100 
 –
 
 
 
 
Hutchison Hayes Separation Inc. 
 
Houston, Texas, USA 
1,000 
100 
 –
 
 
 
 
Deﬁnox Inc. 
 
New Berlin, Wisconsin, USA 
1,000 
100 
 –
 
 
 
 
Sandymount Technologies Corporation 
 
Woburn, Massachusetts, USA 
1,000 
100 
 –
 
 
Alfa Laval IC Disc Inc. 
 
Richmond, Virginia, USA 
1,000 
100 
 –
 
Alfa Laval Försäkrings AB 
516406-0682 
Lund, Sweden 
50,000 
100 
 –
 
Alfa Laval Ltda  
 
 
 
Sao Paulo, Brazil 
2 
0 
 –
 
Tranter Indùstria e Comércio de Equipamentos Ltda 
 
Sao Paulo, Brazil 
1 
0 
 –
 
Alfa Laval Benelux NV/SA 
 
Brussels, Belgium 
2 
0 
 –
 
Alfa Laval SpA  
 
 
 
Monza, Italy 
20,124 
1 
 –
 
Alfa Laval Iberia SA  
 
 
Madrid, Spain 
1 
0.001 
 –
 
Alfa Laval Ukraine 
 
 
 
Kiev, Ukraine 
 
100 
 –
 
Alfa Laval India Pvt Ltd 
 
 
Pune, India 
1 
0 
 –
 
Alfa Laval Vietnam LLC  
 
Ho Chi Minh City, Vietnam 
0 
100 
 –
Alfa Laval KK  
 
 
 
 
Tokyo, Japan 
1,200,000 
100 
208
Total 
 
 
 
 
 
 
 
 
 
4,669
*  These five companies registered in England and Wales are exempt from the Companies Act 2006 requirements relating to the audit of their individual accounts by virtue of Section 
479A of the Act as Alfa Laval AB (publ) has guaranteed the subsidiary companies under Section 479C of the Act.

137
Notes
Specification of shares in other companies
Company name
Domicile
Number of shares
Share of capital %
Book value SEK thousands
Alfa Laval US Holding Inc.
 
 
 
 
Malta Inc
USA
8,000,000
13
65,665
AMI Global LLC
USA
 
20
28,728
Alfa Laval Aalborg Indústria e Comércio Ltda
 
 
 
Tractebel
Brazil
1,268
 
68
Elektrobras
Brazil
7,107
 
92
Alfa Laval Philippines Inc.
 
 
 
Philippine Long Distance Telephone
Philippines
820
 
14
Alfa Laval Nordic OY
 
 
 
As Oy Koivulantie 7A
Finland
1
 
313
Helsinki Halli
Finland
4
 
141
Framo Nederland BV
 
 
 
Triangle (Air) Freight Forwarders BV
Netherlands
12
33
2,017
Framo Flatøy AS 
 
 
 
Nordhordaland handverk og industrilag AS
Norway
50
4
24
Glöde AS
Norway
3
3
3
Alfa Laval Treasury International AB (publ)
 
 
 
Neles Oyj
Finland
12,723,923
8.46
1,393,019
Alfa Laval Tumba AB
 
 
 
Smedhälsan Ekonomisk Förening
Sweden
 
 
22
Alfa Laval Corporate AB
 
 
 
European Development Capital
 
 
 
Corporation (EDCC) NV
Curacao
36,129
 
0
Multiprogress
Hungary
100
3
0
Kurose Chemical Equipment Ltd
Japan
180,000
11
0
Poljopriveda
former Yugoslavia
 
 
0
Tecnica Argo-Industrial S.A.
Mexico
490
49
0
Adela Investment Co S.A. (preference)
Luxembourg
1,911
0
0
Adela Investment Co S.A. 
Luxembourg
1,911
0
0
Mas Dairies Ltd
Pakistan
125,000
5
0
Total
 
 
 
1,490,106
None of these other companies with a share of capital of 20 percent or more are accounted for as associates since they are dormant or have very limited activites 
and Alfa Laval does not have a significant influence according to IAS 28 item 6.  
Note 21.   Inventories
Type of  inventory
Consolidated
SEK millions
2020
2019
Raw materials and consumables
3,199
3,364
Work in progress
1,866
2,535
Finished goods & goods for resale, new sales
2,650
2,519
Finished goods & goods for resale, spare parts
1,236
1,406
Advance payments to suppliers
272
253
Total
9,223
10,077
A considerable part of the inventory for spare parts is carried at net realisable value.
Obsolescence related to inventories amounts to and has changed as follows:
Obsolescence
Consolidated
 
 
SEK millions
January 1
Translation 
difference
Write down
Reversal of  
previous write down
December 31
Year:
2019
1,243
26
294
-312
1,251
2020
1,251
-89
405
-292
1,275
The Group's inventories have been accounted for after deduction for inter-company gains in inventory due to internal sales within the Group. The inter-company 
profit reserve at the end of 2020 amounts to SEK 571 (576) million. 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

138
Note 22.   Accounts receivable
Accounts receivable with a maturity exceeding one year of SEK 122 (204) million have not been accounted for as non-current assets as they are not intended 
for permanent use.
Accounts receivable are reported net of provisions for bad debts. The provision for bad debts amounts to and has changed as follows:
Bad Debts
Consolidated
 
 
SEK millions
January 1
Translation  
difference
New  provisions  
and increase of  
existing provisions
Amounts 
used
Unused 
amounts  
reversed
Change due to 
discounting
December 31
Year:
2019
386
10
275
-143
-162
0
366
2020
366
-32
97
-48
-64
0
319
The amount of accounts receivable being overdue is an indication of the risk the company runs for ending up in bad debts. The percentage is in relation to the 
total amount of accounts receivable.
Accounts receivable - overdue
Consolidated
SEK millions
2020
%
2019
%
Overdue:
 
 
Maximum 30 days
536
9.2
837
11.2
More than 30 days but maximum 90 days
304
5.2
588
7.9
More than 90 days
425
7.3
538
7.2
Total
1,265
21.7
1,963
26.3
Provision for lifetime expected credit losses
Consolidated
 
Accounts and notes 
receivables / Other 
receivables
Recorded at inception
For credit risks that 
have increased  
significantly since initial 
recognition
Related to objective  
evidence of impairment
Total
SEK millions
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
Accounts and notes receivable
 
 
 
Undue
5,041
6,039
8
5
5
7
32
31
45
43
Overdue 1-30 days
536
837
1
1
0
0
7
3
8
4
Overdue 31-60 days
181
364
 –
 –
4
9
3
5
7
14
Overdue 61-90 days
123
224
 –
 –
9
3
4
20
13
23
Overdue 91-365 days
295
372
 –
 –
50
64
66
45
116
109
Overdue >365 days
130
166
 –
 –
59
70
40
61
99
131
Total
6,306
8,002
9
6
127
153
152
165
288
324
Other receivables
 
 
 
 
 
Contract assets
2,084
2,465
11
18
12
19
5
4
28
41
Financial lessor receivable
4
5
 –
–
1
1
2
–
3
1
Total
2,088
2,470
11
18
13
20
7
4
31
42

139
Notes
Note 23.   Other short-term receivables
Split on type and maturity
Consolidated
SEK millions
2020
2019
Notes receivable
184
218
Financial lessor receivable
4
5
Revenue recognition ahead of progress invoicing
2,056
2,424
Other receivables
969
1,372
Total
3,213
4,019
Of which, not due within one year:
 
   Notes receivable
0
0
   Other receivables
19
24
Total
19
24
Other receivables relate to a wide range of other receivables, including balanced invoicing relating to satisfied performance obligations that have not yet been in-
voiced (where the revenue recognition is ahead of the progress invoicing), VAT receivables, receivables on governments for export incitements, receivables on 
personnel, rent receivables etc.
Note 24.   Prepaid expenses and accrued income
Split on type
Consolidated
SEK millions
2020
2019
Prepaid expenses
323
333
Accrued income
96
118
Total
419
451
Note 25.   Other current deposits
Split on type and maturity
Consolidated
SEK millions
2020
2019
Deposits with banks
1,160
205
Bonds and other securities
1,451
654
Other deposits
7
14
Total
2,618
873
Of which, not due within one year:
 
   Deposits with banks
7
8
   Other deposits
0
3
Total
7
11
Note 26.   Cash and cash equivalents
The item cash and cash equivalents in the statement on financial position and in the cash flow statement is mainly relating to bank deposits and liquid deposits.
Note 27.   Defined benefit obligations
The Group has defined benefit commitments to employees and former employees and their survivors. The benefits are referring to old age pension, survivor's 
pension, disability pension, health care and severance pay.
The deﬁned beneﬁt plans are in place in Austria, Belgium, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Netherlands, Norway, Philippines, South 
Africa, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. Most plans have been closed for new participants and replaced by deﬁned contribution 
plans for new employees. As of 2020 that also applies to the Netherlands. During 2020 the deﬁned beneﬁt pension plan in the US has been settled for the largest 
subsidiaries through purchase of annuities.
Risks
The cost for deﬁned beneﬁt obligations are impacted by several factors that are outside the control of the company, such as the discount rate, the return on plan 
assets, future salary increases, the development of the average length of life and the claim rates under medical plans. The size of and the development of these 
costs are therefore difﬁcult to predict. According to the IAS 19 all of these remeasurements are reported in other comprehensive income.
The following table presents how the net deﬁned beneﬁt liability is arrived at out of the present values of the different deﬁned beneﬁt plans, less the fair value of 
the plan assets. 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

140
Total plan cost
Consolidated
SEK millions
2020
2019
Net plan cost
 
Current service cost
-114
-111
Net interest cost/income
-36
-55
Past service cost/income from plan amendments and curtailments and gains and losses on settlements
8
23
Net plan (-) cost/(+) income
-142
-143
Remeasurements
 
Actuarial losses/gains arising from changes in demographic assumptions
-59
65
Actuarial losses/gains arising from changes in financial assumptions
-674
-505
Actuarial losses/gains arising from changes in experience
-12
25
Return on plan assets less interest on plan assets
313
277
Change in disallowed assets due to asset ceiling
–
–
Other comprehensive income (OCI)
-432
-138
Total plan cost
-574
-281
The following table presents how the present value of the defined benefit liability has changed during the year and lists the different components of the change.
Present value of defined benefit liability
Consolidated
SEK millions
2020
2019
Present value of defined benefit liability at January 1
-7,476
-6,725
Translation difference
608
-333
Current service cost
-114
-111
Interest cost
-124
-185
Employee contributions
-4
-5
Actuarial losses/gains arising from changes in demographic assumptions
-59
65
Actuarial losses/gains arising from changes in financial assumptions
-674
-505
Actuarial losses/gains arising from changes in experience
-12
25
Past service cost/income from plan amendments and curtailments and gains and losses on settlements
8
23
Benefit payments
286
275
Settlement payments
697
0
(-) liability at December 31
-6,864
-7,476
The liability has the following duration and maturity:
Duration and maturity
Consolidated
 
2020
2019
Weighted average duration of the defined benefit obligation (years)
11
13
Maturity analysis of benefit payments (non-discounted amounts) SEK millions
 
maturity ≤ 1 year
206
294
maturity > 1 ≤ 5 years
1,325
1,189
maturity > 5 ≤ 10 years
1,326
1,584
maturity > 10 ≤ 20 years
2,564
2,935
maturity > 20 years
3,502
4,897
Net defined benefit liability
Consolidated
SEK millions
2020
2019
Present value of defined benefit obligation, unfunded
-1,124
-1,177
Present value of defined benefit obligation, funded
-5,740
-6,299
Present value of defined benefit obligation at year end
-6,864
-7,476
Fair value of plan assets
4,440
5,225
Net defined benefit liability
-2,424
-2,251
Less disallowed assets due to asset ceiling
–
–
(-) liability/(+) asset at December 31
-2,424
-2,251
The net plan cost for the defined benefit plans describes the different cost elements of the plans. The net plan cost is reported in the consolidated compre-
hensive income statement on the lines where personnel costs are reported. The interest cost/income is not part of the financial net, but instead just a way to 
categorize the components of the net plan cost. All remeasurements are reported in other comprehensive income and will never be reclassified to net income.

141
Notes
The plan assets are split on the following types of assets:
Split of plan assets
Consolidated
SEK millions
2020
2019
Cash and cash equivalents
299
328
Equity instruments
938
976
Debt instruments
1,759
2,604
Real estate
269
243
Derivatives
17
–
Investment funds
1,158
1,074
Fair value at December 31
4,440
5,225
The plan assets are in all essentials valued at quoted market prices in active markets.
The table below presents how the net defined benefit liability has changed and the factors affecting the change.
Net defined benefit liability/asset 
Consolidated
SEK millions
2020
2019
Defined benefit liability/asset at January 1
-2,251
-2,081
Translation difference
199
-91
Net plan cost
-142
-143
Employer contributions
155
148
Remeasurements (other comprehensive income)
-432
-138
Benefit payments, unfunded plans
46
54
Settlement payments, unfunded plans
1
0
(-) liability/(+) asset at December 31
-2,424
-2,251
The gross plan assets and gross defined benefit liabilities of each plan are to be reported as a net amount. The following table shows how the net asset and the 
net liability are calculated.
Gross defined benefit liability/asset 
Consolidated
SEK millions
2020
2019
Assets 
 
Fair value of plan assets
4,440
5,225
Less disallowed assets due to asset ceiling
–
–
4 440
5 225
Netting
-4,370
-5,155
Assets in statement on financial position
70
70
Liabilities
 
Present value of defined benefit obligation at year end
-6,864
-7,476
Netting 
4,370
5,155
Provision in statement on financial position
-2,494
-2,321
The following table presents how the fair value of the plan assets has developed during the year and lists the components of the change.
Fair value of plan assets
Consolidated
SEK millions
2020
2019
Fair value of plan assets at January 1
5,225
4,644
Translation difference
-409
242
Employer contributions
155
148
Employee contributions
4
5
Interest on plan assets
88
130
Return on plan assets less interest on plan assets
313
277
Benefit payments
-240
-221
Settlement payments
-696
0
(+) asset at December 31
4,440
5,225
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

142
The following table presents how the defined benefit pension schemes are distributed on different countries.
Regional split
Consolidated
SEK millions unless otherwise stated
United 
States
United 
Kingdom
Nether-
lands
Germany
Norway
Italy
Belgium
Other
Total
Net defined benefit liability
 
 
 
 
 
 
 
 
 
Present value of the defined benefit obligation, unfunded
-556
–
–
-189
-10
-15
–
-354
-1,124
Present value of the defined benefit obligation, funded
0
-3,670
-834
–
-818
–
-93
-325
-5,740
Present value of the defined benefit obligation at year end
-556
-3,670
-834
-189
-828
-15
-93
-679
-6,864
Fair value of plan assets
56
2,376
832
–
824
–
63
289
4,440
Net defined benefit liability
-500
-1,294
-2
-189
-4
-15
-30
-390
-2,424
Less disallowed assets due to asset ceiling
–
–
–
–
–
–
–
–
–
(-) liability/(+) asset
-500
-1,294
-2
-189
-4
-15
-30
-390
-2,424
Net plan cost
-41
-38
-10
-1
-11
0
-2
-39
-142
Remeasurements (OCI)
-3
-423
9
-2
-20
–
-5
12
-432
Sensitivity analysis*
 
 
 
 
 
 
 
 
 
Discount rate decreased by 1% point
-64
-721
-194
-8
-113
–
-5
-95
-1,200
Life expectancy increased by 1 year
-25
-211
-35
-12
-33
–
0
-11
-327
Expected average retirement age decreased by 1 year
-5
–
–
0
0
–
1
-11
-15
Claim rates under medical plans increased by 1 % point
-8
–
–
–
–
–
–
–
-8
Expected rate of salary increases increased by 1% point
0
-59
–
–
-14
–
-10
-27
-110
Medical costs increased by 1% point
-27
–
–
–
–
–
–
-1
-28
Index for future compensation increases increased by 1% point
0
-114
-62
-20
-102
–
–
-2
-300
Cost for actuarial services
-2
-2
0
0
-1
0
0
0
-5
Number of participants in the plans at December 31
 
 
 
 
 
 
 
 
 
Current employees (active members)
1,010
82
17
1
116
–
11
2,464
3,701
Current employees (only vested value for closed plans)
–
–
34
3
1
113
–
12
163
Former employees that are not yet pensioners
0
335
309
4
–
–
55
–
703
Pensioners
695
683
110
217
396
–
–
79
2,180
Total
1,705
1,100
470
225
513
113
66
2,555
6,747
Remaining service period
 
 
 
 
 
 
 
 
 
Average remaining service period for active members (years)
8
9
12
4
4
–
13
8
8
* How much would the present value of the defined benefit obligation at December 31 increase if the (all other things being equal):
The weighted averages for the more significant actuarial assumptions that have been used at the year-end are:
Actuarial assumptions
Consolidated
 
2020
2019
Discount rate (%)
1.2
2.1
Expected average retirement age (years)
64
63
Life expectancy for a 45-year-old male (years)
82
82
Life expectancy for a 45-year-old female (years)
85
85
Claim rates under medical plans (%)
5
5
Expected rate of salary/wage increase (%)
3
3
Change in health care costs (%)
5
5
Index for future compensation increases (%)
2
2
Future contributions
Consolidated
SEK millions
2021
Expected employer contributions to the plan for the next calendar year
-194
Expected employer contributions for the next calendar year to multi-employer plans reported as defined contribution plans
-30

143
Notes
Note 28.   Other provisions
Movement schedule
Consolidated
 
 
 
 
SEK millions
January 1
Translation 
difference
New provisions and increase 
of existing provisions
Amounts used
Unused  amounts 
reversed
December 31
2019
Claims & warranty
1,366
15
628
-470
-79
1,460
Deferred costs
129
3
108
-43
-44
153
Restructuring
358
0
89
-278
-3
166
Onerous contracts
85
0
37
-16
-7
99
Litigations
201
0
106
-107
0
200
Other
455
9
271
-304
-7
424
Total
2,594
27
1,239
-1,218
-140
2,502
Of which:
   current
1,929
1,863
   non-current
665
 
 
 
 
639
2020
Claims & warranty
1,460
-54
513
-571
-91
1,257
Deferred costs
153
-7
102
-64
-18
166
Restructuring
166
-5
321
-85
-14
383
Onerous contracts
99
-3
9
-32
-24
49
Environmental
 –
  –
50
  –
 –
50
Litigations
200
-4
12
 –
-2
206
Other
424
-43
168
-208
-14
327
Total
2,502
-116
1,175
-960
-163
2,438
Of which:
 
 
   current
1,863
1,757
   non-current
639
 
 
 
 
681
Unused amounts reversed refer to, among other items, changed classifications and reversals of provisions made in prior years that have not been used.
Each type of provision entails everything from a few up to a large number of different items. It is therefore not practicable or particularly meaningful to 
specify the provisions item by item. As indicated above a clear majority of the provisions will result in disbursements within the next year. 
Claims & warranty refers to claims from customers according to the conditions in issued warranties. The claims concern technical problems with the 
delivered goods or that promised performance has not been achieved. 
Deferred costs are partly costs that are known but not yet debited at the time of invoicing, partly costs that are unknown but expected at the time of 
invoicing. The provision for deferred costs is charged to costs of goods sold in order to get a correct phasing of the gross margin.   
Provisions for restructuring are usually relating to closure of plants or closure or move of production lines, businesses, functions etc. or reduction of the 
number of employees in connection with a downturn in the business climate. The provisions for restructuring are affecting approximately 600 (95) employees.
The provision for onerous contracts is relating to orders where a negative gross margin is expected. Provisions are made as soon as a ﬁnal loss on the 
order can be expected. This can in exceptional cases happen already at the time when the order is taken. Normally this provision is relating to larger and 
complex orders where the ﬁnal margin is more uncertain.
The provision for litigations refers to ongoing or expected legal disputes. The provision covers expected legal costs and expected amounts for damages or settlements.
Other refers to miscellaneous provisions that do not fall within any of the above categories. 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

144
Note 29.   Borrowings and net debt
Net debt
Consolidated
SEK millions
2020
2019
Credit institutions
120
166
Swedish Export Credit
1,008
2,318
European Investment Bank
 -
1,203
Corporate bonds
8,040
8,335
Lease liabilities
2,235
2,620
Total debt
11,403
14,642
Cash and cash equivalents and current deposits
-7,768
-6,467
Net debt *
3,635
8,175
* Alternative performance measure.
The changes in the loans during the year are explained by the following table:
Loans
Consolidated
SEK millions
January 1
Cash flows
Exchange 
rate effects
December 31
Year:
2019
11,863
-144
303
12,022
2020
12,022
-2,841
-13
9,168
The loans are distributed among currencies as follows:
Maturity of loans by currency
Consolidated
Current
Non-current
SEK millions
2020
2019
2020
2019
Currency:
 
 
BRL
3
11
 –
 –
EUR
1,092
27
8,043
10,588
INR
8
9
 –
 –
PLN
22
104
 –
 –
SEK
 –
 –
 –
12
USD
 –
1,271
 –
 –
Total
1,125
1,422
8,043
10,600
Of which, not due within five years:
 –
–
The maturity structure of the loans is presented in the bar chart in the section 
“Liquidity risk and refinancing risk” under Financial risks.
Negative cash flows
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0
3
6
9
12
15
18
24
36
48
60
Months
-1,049
-99
-30
-27
-3
-8
-8
-5,113
0
-3,034
SEK millions
Maturity analysis for loans
Loans with ﬂoating interest rate
Loan from credit institutions
As of April 17, 2020, Alfa Laval has a new senior credit facility with an ex-
tended banking syndicate of EUR 900 million corresponding to SEK 9,077 
million at December 31, 2020. The facility was not utilised at December 31, 
2020. It matures in June 2022. 
The interest is based on applicable IBOR plus a mark-up based on the relation 
between net debt and EBITDA and how much of the facility that is utilised. 
At year end the commitment fee on the un-utilised facility was 17.5 (12.2) 
basis points.
Bilateral term loans with other lenders
Alfa Laval has a bilateral term loan with Swedish Export Credit of EUR 100 
million that matures in June 2021, corresponding to SEK 1,008 million. The 
loan accrues interest at floating rate based on applicable IBOR plus a mark-
up of 95 basis points. The loan of USD 136 million that matured on June 23, 
2020 has been repaid.
The loan from the European Investment Bank of EUR 115 million matur-
ing in June 2021 has been repaid already on March 4, 2020.
Alfa Laval raised a bilateral term loan from SEB and Nordea on June 23, 
2020 of SEK 2,000 million maturing in December 2021. The loan has been 
repaid already on December 23, 2020.
Interest level of loans with ﬂoating interest rate
The senior credit facility and the bilateral term loans accrue interest at floating 
rate. At the end of 2020 the only remaining loan was accruing interest at 0.43 
%. The corresponding figure for 2019 as a range of 0.10 % - 2.73 %. The av-
erage interest rate at the end of 2020 was 0.43 (1.25) percent. The interest for 
the loan with floating interest rates was fixed at December 15, 2020 for the re-
maining term, which is the reason why no loans with floating interest rates 
were hedged to fixed interest rate at December 31, 2020. At December 31, 
2019, 16 percent of the loans with floating interest rate were hedged to fixed 
interest rate, with a duration of 3.0 months.
Loans with ﬁxed rate
Corporate bonds and commercial papers
The corporate bonds are listed on the Irish stock exchange and consist of 
one tranche of EUR 500 million, with a fixed interest rate of 1.495 percent 
based on a coupon of 1.375 percent that matures in September 2022 and 
one tranche of EUR 300 million, with a fixed interest of 0.308 percent based 
on a coupon of 0.250 percent that matures in June 2024.
The commercial paper programme of SEK 2,000 million was not utilised 
at December 31, 2020. When utilised, the interest is ﬁxed at inception and is 
based on STIBOR ﬂat.
Transaction costs 
The transaction costs in connection with raising the loans or issuing the 
bonds have been capitalised and are being amortised over the maturity of 
the loans. At the end of the year the capitalised amount was SEK 21 (20) 
million. The current year's cost for the fee amortisation is SEK -13 (-9) million. 
Average interest and currency duration
The average interest and currency duration for all loans including derivatives 
is 26.1 (30.1) months at the end of 2020.
Financial covenants
The syndicated loan and the bilateral term loan with Swedish Export Credit 
are linked to one financial covenant that must be fulfilled throughout the life 
of the loans. The covenant refers to the relationship between net debt and 
EBITDA in combination with the current official Alfa Laval rating.
If the covenants are not fulﬁlled, the lenders are entitled to demand immediate 
repayment of the loans, provided that the breach is not temporary. Alfa Laval 
has fulﬁlled the covenants with a good margin ever since the loans were raised.

145
Notes
Note 30.   Other current liabilities  
Split by type
Consolidated
SEK millions
2020
2019
VAT liabilities, employee withholding taxes
194
201
Progress invoicing ahead of revenue recognition
795
1,452
Other non-interest bearing liabilities
2,588
2,566
Total
3,577
4,219
Note 31.   Accrued costs and prepaid income  
Split by type and maturity
Consolidated
SEK millions
2020
2019
Accruals for social security
402
385
Reserve for severance pay
200
206
Accrued interest expenses
26
27
Other accrued expenses
1,516
1,542
Prepaid income
9
138
Total
2,153
2,298
Of which, not due within one year:
 
   Accruals for social security
42
37
   Reserve for severance pay
120
161
   Other accrued expenses
148
121
Total
310
319
Note 32.   Pledged assets and contingent liabilities  
Split by type
Consolidated
SEK millions
2020
2019
Pledged assets
 
   Other pledges and similar commitments
7
10
Total
7
10
Contingent liabilities
 
   Discounted bills
17
2
   Performance guarantees
1,503
1,470
   Other contingent liabilities
1,377
1,045
Total
2,897
2,517
As of December 31, 2020, the Group had sold receivables with recourse totalling SEK 17 (2) million. These are disclosed as discounted bills above. 
Other contingent liabilities are among other items referring to bid guarantees, payment guarantees to suppliers and retention money guarantees.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

146
Note 33.   Transactions with related party
Tetra Pak within the Tetra Laval Group is Alfa Laval's single largest customer 
with 4.7 (5.4) percent of net sales. In June 1999, Tetra Pak entered into a 
purchasing agreement with Alfa Laval that governs the distribution, research 
and development, market and sales information, use of trademarks and in-
tellectual property. The following areas shall be agreed upon from time to 
time between representatives of the parties: products that are subject to the 
agreement, prices and discounts of such products, geographical markets 
and product areas where Tetra Pak is Alfa Laval's preferred distributor, the 
right of Tetra Pak to affix its trademarks to Alfa Laval products, sales goals 
for Tetra Pak in defined geographical markets, products and technologies 
that are the focus of joint research and development and the ownership 
rights of the research and development result and use of market and sales 
information. The agreement aims at the applications within liquid food where 
Tetra Pak has a natural market presence through the deliveries of packaging 
equipment and packaging material.
The agreement has a 12-month period of notice. The prices Tetra Pak re-
ceives are not lower than the prices Alfa Laval would obtain when selling to a 
comparable third party. The prices are ﬁxed on a calendar year basis.
Alfa Laval rents premises to DeLaval in Russia. The total rent income for 
this amounts to SEK 1 (2) million. 
The Board of Directors for Alfa Laval AB (publ) has two representatives 
from Tetra Laval - Jörn Rausing and Finn Rausing.
At year-end, Alfa Laval has the following balance items against compa-
nies within the Tetra Laval group (Tetra Pak and DeLaval).
Receivables on/payables to related parties
Consolidated
SEK millions
2020
2019
Receivables:
 
Accounts receivable
159
185
 
Liabilities:
 
Accounts payable
0
 –
Other liabilities
19
6
Alfa Laval has had the following transactions with companies within the Tetra 
Laval group (Tetra Pak and DeLaval). 
Revenues/expenses from related parties
Consolidated
SEK millions
2020
2019
Net sales
1,968
2,533
Other operating income
1
2
Note 34.   Interests in joint ventures
Alfa Laval owns 50 percent in three different joint ventures: Rolls Laval Heat 
Exchangers Ltd with Rolls Royce as partner, Alfdex AB with Concentric as 
partner and AlfaWall AB with Wallenius as partner. Alfdex AB has a fully 
owned subsidiary Alfdex Kunshan Co Ltd. None of these joint ventures are 
of material importance and for that reason no disclosures are made of each 
individual joint venture. Instead disclosures in aggregate are made on the 
carrying amount of Alfa Laval’s interests in these individually immaterial joint 
ventures. See the below tables.
Since joint ventures as from 2014 are consolidated according to the equity 
method in IFRS 11 ”Joint arrangements”, the amounts in the following two ta-
bles are no longer part of Alfa Laval’s statements over consolidated compre-
hensive income and consolidated ﬁnancial position.
  
Assets/liabilities
Joint ventures
SEK millions
2020
2019
Current assets
179
120
Non-current assets
88
38
Current liabilities
105
73
Non-current liabilities
34
21
Contingent liabilities
35
37
Revenues/expenses
Joint ventures
SEK millions
2020
2019
Net sales
273
263
Cost of goods sold
-182
-182
Other operating income
95
111
Other operating costs
-156
-162
Financial net
-1
-1
Result before tax
29
29
Taxes
-7
-7
Net income
22
22
Other comprehensive income
0
-2
Comprehensive income
22
20
Instead the application of the equity method means that the net income in 
the joint ventures is booked into one line in the operating income. The coun-
ter entry is an increase or decrease of the value of shares in joint ventures. 
Received dividends reduce the value of the shares in joint ventures.
Interests in joint ventures
Consolidated
SEK millions
2020
2019
Comprehensive income
22
20
Received dividends
–
2
Shares in joint ventures
85
63
The effect on comprehensive income is the same as the net income.

147
Notes
Note 35.   Leasing
Leasing disclosures
Consolidated
SEK millions
2020
2019
Lessee
 
Financial position
 
Right-of-use assets
2,152
2,683
Lease liabilities
2,235
2,620
 
New or adjusted leases
220
375
Income statement
Depreciation
-436
-417
Interest cost on lease liabilities
-78
-71
Expenses
Expense for not capitalised short-term leases
64
41
Expense for not capitalised leases of low-value assets not included in above line
7
6
Expense for not capitalised leases of low-value assets according to Alfa Lavals higher materiality thresholds not included in above lines 
10
12
Expense for variable lease payments not included in lease liabilities
0
1
Cash flow
 
Total cash outflow for all leases, including leases that are not capitalised, excluding non-lease components
593
536
 
Lessor
 
Financial position
 
Financial lessor receivable
4
5
 
Income statement
 
Finance income
0
0
Income from subleasing 
1
0
Income from variable lease payments not included in financial lessor receivable
0
0
Lease income from operating leases
13
1
- out of which variable lease payments not dependent on an index or a rate
0
0
The leasing periods are between 1 and 25 years. The latter figure relates to a very limited number of properties. Normally the maximum leasing period is 10 
years for buildings and 3–5 years for all other assets.
The weighted average incremental borrowing rate used to discount the value of the lease liabilities during 2020 is 3.26 (2.64) percent.
Maturity analysis of lease liabilities and receivables
Consolidated
Lease payments by the lessee
Finance lease payments received by 
the lessor
Operating lease payments received 
by the lessor
SEK millions
2020
2019
2020
2019
2020
2019
Maturity in year:
 
 
2020
N/A
444
N/A
1
N/A
4
2021
426
421
1
1
0
3
2022
395
389
1
1
0
1
2023
332
327
1
1
0
0
2024
302
297
1
1
0
0
2025
246
N/A
 –
N/A
 –
N/A
Later
953
1,142
 –
 –
 –
 –
Total
2,654
3,020
4
5
0
8
Unearned finance income
0
0
Discounted unguaranteed residual value
4
5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

148
Note 36.   Revenue recognition from contracts with customer
Revenue recognition from contracts with customers
Consolidated
SEK millions
2020
2019
Income statement
 
Net sales from:
 
Contracts with customers
41,435
46,477
Leasing
33
40
Total net sales
41,468
46,517
 
Net sales from contracts with customers with a contract duration of:
 
≤ 1 year
36,622
42,299
> 1 year
4,813
4,178
41,435
46,477
Performance obligations towards customers satisfied:
 
at a point in time 
34,141
40,477
over time 
7,294
6,000
41,435
46,477
 
Additional information:
 
Net sales:
 
included in contract liability at January 1
426
1 014
from performance obligations satisfied or partially satisfied in previous periods
209
381
 
Amortisation of capitalised costs to obtain or fulfil contracts with external customers
 –
–
Impairment losses
 –
–
 
Assets
 
Accounts and notes receivables, contracts with external customers
5,985
7,449
Accounts and notes receivables, external, other
33
229
Contract assets
2,056
2,424
Capitalised costs to obtain a contract with a customer
 –
–
Capitalised costs to fulfil a contract with a customer
 –
–
 
Liabilities
 
Contract liabilities
5,176
5,721
Net sales per Business Division, per geography and per product is shown in Note 1, 2 and 3. Since contracts with customers account for 99.9 percent of net 
sales and leasing less than 0.1 percent the figures are shown for total net sales in these notes and not separately for contracts with customers.
A contract asset is Alfa Laval's right to consideration in exchange for goods or services that Alfa Laval has transferred to a customer when that right is conditioned 
on something other than the passage of time (for example, Alfa Laval's future performance). It could be balanced invoicing relating to satisﬁed performance obligations 
that have not yet been invoiced (where the revenue recognition is ahead of the progress invoicing) and inventory linked to revenue recognised over time (like work in 
progress).
A contract liability is Alfa Laval's obligation to transfer goods or services to a customer for which Alfa Laval has received consideration (or the amount is due) from 
the customer. It could be advance payments and balanced invoicing relating to unsatisﬁed performance obligations that have been invoiced (where the progress in-
voicing is ahead of the revenue recognition).

149
Notes
Note 37.   Remuneration policy for executive officers
The executive officers, i.e. the CEO and other members of Group 
Management reporting to the CEO, fall within the provisions of this policy. 
The policy is forward-looking, i.e. applicable to remuneration agreed, and 
amendments to remuneration already agreed, after adoption of the policy by 
the annual general meeting in April 2021. This policy does not apply to any 
remuneration decided or approved by the general meeting. The policy is 
substantially in line with the policy adopted in 2020.
A prerequisite for the successful implementation of the company’s busi-
ness strategy and safeguarding of its long-term interests, including its sus-
tainability, is that the company is able to recruit and retain qualiﬁed person-
nel, consequently it is necessary that the company offers market competitive 
remuneration. 
For information regarding Alfa Laval’s business strategy, please visit http-
www.alfalaval.com/investors/in-brief/#xaa
This policy enables the company to offer the executive ofﬁcers a competi-
tive total remuneration. The remuneration shall be on market terms and may 
consist of the following components: ﬁxed base salary, variable cash remu-
neration (including STI and LTIP), pension beneﬁts and other beneﬁts. The 
components, their purpose and link to the company’s business strategy are 
described below.
The decision-making process to determine, review and implement 
the policy
The Board of Directors has established a Committee within the Board (the 
Remuneration Committee), with the tasks of preparing, within the Board of 
Directors, the policy for remuneration for executive officers. The Board of 
Directors shall propose a revised policy at least every fourth year and submit 
it to the general meeting. The policy shall be in force until a new policy is 
adopted by the general meeting.
Unless otherwise stated herein, the Board of Directors shall resolve on 
matters regarding remuneration and employment provisions for all other ex-
ecutive ofﬁcers. The Committee shall continuously report to the Board of Di-
rectors. The CEO and the other executive ofﬁcers shall not be present when 
their respective remuneration terms are decided.
Additionally, the general meeting may – irrespective of this policy– resolve 
on, among other things, share-related or share price-related remuneration.
Fixed Base Salary
Purpose and link to strategy
Supports the attraction and retention of the best talents. Ensures competitiveness while controlling fixed costs to maximise efficiency.
Operational Details
–   Normally reviewed annually and increases will usually be effective from 1 January or following a change in responsibilities.
–   The Remuneration Committee will consider, among other things, the following parameters when reviewing fixed base salary:
–  Economic and salary conditions and trends.
– The individual’s performance and responsibilities.
–  Base salaries and total remuneration at other companies that operate in the same markets, typically benchmarked against similar roles.
Variable Cash Remuneration
A portion of the total remuneration for the executive officers is linked to business performance so that total remuneration will increase or decrease in line with performance, thus 
promoting the company’s business strategy and long-term interests.
Annual Short-Term Incentive (STI)
Purpose and link to strategy
To incentivise and create focus on the delivery of annual financial and strategic criteria. 
Operational Details
–  The performance criteria, weighting and targets are to be proposed by the Remuneration Committee annually and approved 
by the Board of Directors. Targets shall be set by reference to the company’s operating plan and historical and projected per-
formance. 
–  The outcome of criteria for awarding STI is to be measured over a period of one year and depend on the degree of fulfilment of 
predetermined targets. 
–  The Board of Directors shall have the possibility, under applicable law or contractual provisions, subject to the restrictions that 
may apply under law or contract, to reclaim in whole or in part STI paid on incorrect grounds (so-called claw-back). 
Opportunity Levels
The maximum opportunity for STI can amount up to 50 percent of fixed base salary.  For the CEO the maximum opportunity can 
amount up to 60 percent of fixed base salary. The Remuneration Committee shall have the possibility to review the opportunity 
levels in order to ensure market competitiveness.
Performance criteria
The STI plan awards shall be based on mainly financial criteria.  The criteria shall be designed so as to contribute to the compa-
ny’s business strategy and long-term interests.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

150
Long-Term Incentive Plan (LTIP)
Purpose and link to strategy
Give extra focus on the long-term value creation for the shareholders.
Operational Details
–  An annual grant of the LTIP, with a three-year performance period, can be decided by the Board of Directors each year. 
–  Payment to the participants of the program are made after year three, provided, that they are still employed at the date of payment.
–  The Board of Directors shall have the possibility, under applicable law or contractual provisions, subject to the restrictions that 
may apply under law or contract, to reclaim in whole or in part LTIP paid on incorrect grounds (so-called claw-back). 
–  In the event of a restructuring of the Company or any other extraordinary event which the Remuneration Committee considers will 
affect the value of an award, the method of calculating the proportion of the maximum value of the award which will be paid to a 
Participant on vesting may be adjusted in such manner as the Remuneration Committee shall determine to be fair and reasonable.
Opportunity Levels
For executive officers the maximum opportunity for LTIP can amount up to 40 percent of fixed base salary for each three-year performance 
period.  For the CEO the maximum opportunity can amount up to 50 percent of fixed base salary for each three-year performance period.
Performance Criteria
The performance criteria of the LTIP are to be related to financial targets over a business cycle, including but not necessarily limited 
to, Operating margin (adjusted EBITA margin) and Net invoicing growth.  Maximum outcome is awarded when the externally com-
municated long-term financial targets are clearly exceeded.
For retention or recruitment purposes or extraordinary performance beyond the individual’s ordinary tasks the Remuneration Committee based on proposal of CEO, may 
decide on a specific cash remuneration. Such remuneration may not exceed an annual amount corresponding to 40 percent of fixed annual cash salary and may not be paid 
more than once each year per individual.
Pension Benefits
Purpose and link to strategy
Provide competitive and cost-effective pension benefits. 
Operational Details
–  Pension benefits shall be defined contribution (premium defined) unless the individual concerned is subject to defined benefit 
pension under mandatory collective agreement provisions. 
–  Variable cash remuneration shall not qualify for pension benefits unless the executive officer is part of mandatory collective 
agreed provisions where this is stipulated. 
–  Early retirement may be offered selectively and only after a special decision by the Remuneration Committee, with a defined 
contribution early retirement scheme.
–  For executive officers governed by rules other than Swedish, pension benefits may be duly adjusted for compliance with man-
datory rules or established local practice, taking into account, to the extent possible, the overall purpose of this policy. 
Opportunity Levels
The pension premiums for defined contribution pension shall amount to not more than 50 percent of the pensionable salary (for 
the CEO fixed annual base salary).
Other Benefits
Purpose and link to strategy
Provide competitive and cost-effective benefits.
Operational Details
–  Other benefits may include but is not limited to life insurance, disability insurance and health care insurance and a company car 
or car allowance. 
–  For executive officers governed by rules other than Swedish, benefits may be duly adjusted for compliance with mandatory 
rules or established local practice, taking into account, to the extent possible, the overall purpose of this policy.
–  Executive officers who are international assignees (for example expatriates) to or from Sweden may receive additional remu-
neration and other benefits to the extent reasonable in light of the special circumstances associated with the international 
assignment arrangement, taking into account, to the extent possible, the overall purpose of this policy. 
Opportunity Levels
Other benefits may amount to not more than 5 percent of the fixed annual cash salary and shall be set at a level which the 
Remuneration Committee considers to: 
–  provide the relevant level of benefit depending on role and the individual circumstances,
–  be in line with comparable roles in companies with similar size and complexity in the local market, and 
–  be appropriate compared to the benefits offered to the wider workforce in the local market.
Termination of employment
Details
–  If notice of termination of employment is made by the company:
– The notice period may not exceed twelve months. 
–  Fixed cash salary during the period of notice and severance pay may together not exceed an amount equivalent to the 
fixed cash salary for two years. 
–  When termination is made by the executive officer the period of notice may not to exceed six months without any right to severance pay.
–  Appropriate so-called good leaver/bad leaver principles are to be applied for STI and LTIP. 
–  Repatriation – If the executive officer is an international assignee the company may reimburse reasonable cost for the repatria-
tion of good leavers, taking into account, to the extent possible, the overall purpose of this policy. 
For executive officers governed by rules other than Swedish, payments in connection with termination may be duly adjusted for compliance 
with mandatory rules or established local practice, taking into account, to the extent possible, the overall purpose of this policy.

151
Notes
The unrestricted equity in Alfa Laval AB (publ) is SEK: 
Profit brought forward
9,893,521,524
Net income 2020
624,495,774
10,518,017,298
The Board of Directors propose a dividend of SEK 5.50 (-) per share corresponding to SEK 2,307,009,733 (-) and that the remaining income 
of SEK 8,211,007,565 (9,893,521,524) be carried forward. 
The Board of Directors are of the opinion that the proposed dividend is in line with the requirements that the type and size of operations, 
the associated risks, the capital needs, liquidity and ﬁnancial position put on the company.
True and fair view
The undersigned certify that the annual report for the Group and the Parent company has been prepared in accordance with International 
Financial Reporting Standards (IFRS), as adopted for use in the European Union, and generally accepted accounting principles respective-
ly, and gives a true and fair view of the financial positions and results of the Group and the Parent company, and that the Board of 
Directors’ report gives a fair review of the development of the operations, financial positions and results of the Group and the Parent com-
pany and describes substantial risks and uncertainties that the Group companies face. 
 
 
Lund, March 1, 2021 
 
 
 
 
Dennis Jönsson 
Maria Moræus Hanssen 
Susanne Jonsson
 
Chairman 
Director 
Employee representative 
 
 
Henrik Lange 
Bror García Lantz 
Ray Mauritsson
 
Director 
Employee representative 
Director 
 
 
Heléne Mellquist 
 
Henrik Nielsen 
 
Finn Rausing
 
Director 
 
Employee representative 
 
Director
 
Jörn Rausing 
  
Ulf Wiinberg 
 
Tom Erixon
 
Director 
 
Director 
 
President and CEO 
 
 
 
 
 
 
Our Auditors' Report concerning this Annual Report has been issued on March 9, 2021.
 
 
 
 
 
Staffan Landén 
 
Karoline Tedevall
 
Authorised Public Accountant 
 
Authorised Public Accountant
Note 40.   Proposed disposition of earnings
Note 39.   Events after the closing date
The statements on financial position and the comprehensive income statements will be adopted at the Annual General Meeting of shareholders on April 27, 2021.
Note 38.   Government grants
In 2020 Alfa Laval has received SEK 61 (-) million in government grants. These have mainly been received to cover the costs for various working hour reduc-
tion schemes linked to COVID-19 in different countries. In addition, SEK 47 million has been received as support for reduced working hours in Sweden, that 
has not been reported in the P&L but has instead been balanced due to the uncertainty around the conditions for the support.
Salary and employment conditions for employees
In the preparation of the Board of Directors’ proposal for this remuneration 
policy, salary and employment conditions for employees of the company 
have been taken into account by including information on the employees’ 
total income, the components of the remuneration and increase and growth 
rate over time. The development of the difference between the remuneration 
to executive officers and remuneration to other employees will be disclosed 
in the remuneration report.
Derogation from the policy
The Board of Directors may temporarily resolve to derogate from the policy, 
in whole or in part, if in a specific case there is special cause for the deroga-
tion and a derogation is necessary to serve the company’s long-term inter-
ests, including its sustainability, or to ensure the company’s financial viability. 
As set out above, the Remuneration Committee’s tasks include preparing 
the Board of Directors’ resolutions in remuneration-related matters. This in-
cludes any resolutions to derogate from the policy.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

152
Opinions
We have audited the annual accounts and consolidated accounts 
of Alfa Laval AB (publ) for the year 2020. The annual accounts and 
consolidated accounts of the company are included on pages 
71–151 and 156–158 in this document.
In our opinion, the annual accounts have been prepared in 
accordance with the Annual Accounts Act and present fairly, in all 
material respects, the ﬁnancial position of the parent company as 
of 31 December 2020 and its ﬁnancial performance and cash ﬂow 
for the year then ended in accordance with the Annual Accounts 
Act. The consolidated accounts have been prepared in accordance 
with the Annual Accounts Act and present fairly, in all material re-
spects, the ﬁnancial position of the group as of 31 December 2020 
and their ﬁnancial performance and cash ﬂow for the year then 
ended in accordance with International Financial Reporting Stand-
ards (IFRS), as adopted by the EU, and the Annual Accounts Act. 
The statutory administration report is consistent with the other 
parts of the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of shareholders 
adopts the consolidated ﬁnancial position and parent company 
income and ﬁnancial position for the parent company and the group.
Our opinions in this report on the annual accounts and consolidated 
accounts are consistent with the content of the additional report that 
has been submitted to the parent company's audit committee in 
accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Standards 
on Auditing (ISA) and generally accepted auditing standards in Sweden. 
Our responsibilities under those standards are further described in 
the Auditor’s Responsibilities section. We are independent of the 
parent company and the group in accordance with professional 
ethics for accountants in Sweden and have otherwise fulfilled our 
ethical responsibilities in accordance with these requirements. This 
includes that, based on the best of our knowledge and belief, no 
prohibited services referred to in the Audit Regulation (537/2014) 
Article 5.1 have been provided to the audited company or, where 
applicable, its parent company or its controlled companies within the EU.
We believe that the audit evidence we have obtained is sufﬁcient 
and appropriate to provide a basis for our opinions.
Auditor’s report
To the general meeting of the shareholders of Alfa Laval AB (publ), corporate identity number 556587-8054
Report on the annual accounts and consolidated accounts
Key Audit Matters
Key audit matters of the audit are those matters that, in our profes-
sional judgment, were of most significance in our audit of the annual 
accounts and consolidated accounts of the current period. These 
matters were addressed in the context of our audit of, and in forming 
our opinion thereon, the annual accounts and consolidated accounts 
as a whole, but we do not provide a separate opinion on these 
matters. For each matter below, our description of how our audit 
addressed the matter is provided in that context.
 
We have fulfilled the responsibilities described in the Auditor’s respon-
sibilities for the audit of the financial statements section of our report, 
including in relation to these matters. Accordingly, our audit included 
the performance of procedures designed to respond to our assess-
ment of the risks of material misstatement of the financial statements. 
The results of our audit procedures, including the procedures per-
formed to address the matters below, provide the basis for our audit 
opinion on the accompanying financial statements.

153
Description
Book value of other provisions in the group amounts 2,438 MSEK 
per 31 December 2020. The provisions amongst other relates to pro-
vision for expected expenses for warranties, litigation, restructuring 
and onerous contracts, as expressed in Note 28 Other provisions.
The provisions include assumptions about future outcome, primar-r
ily as it relates to amount, timing and magnitude of the ﬁnal settle-
ment. Provisions for this type of expenses are uncertain and are 
based on various assumptions made by the company. Changes to
the assumptions upon which the provisions are based could have a 
major impact on the reported earnings.
How our audit addressed this key audit matter
We have obtained the group’s documentation of the provisions. 
We have evaluated the provisions recorded and discussed the
assumptions and risk assessments made by the company for 
each major provision in order to establish that the provisions are 
in compliance with applicable accounting standards. We have also 
followed up the provisions with legal assessments, documented
decisions and historic outcome.
In our audit we have also examined whether the disclosures in
the annual report are appropriate.
Other provisions
Description
Book value of goodwill amounts to 19,080 MSEK per 31 December 
2020 which corresponds to 31% of the group’s total assets. The 
company evaluates whether the book value of goodwill exceeds its
recoverable amount on an annual basis or upon indications of de-
clining value. The recoverable amount is determined for each cash-
generating unit through means of a calculation of net present value
of future cash ﬂows. Future cash ﬂows are based on management’s
business plans and forecasts and includes various assumptions such 
as development in earnings, growth, investment needs and discount 
rates. If a decision is made to wind-up or dispose a business a sep-
arate impairment test is performed and a write down is recorded if 
the recoverable amount is lower than the recorded value for the business.
 Changes to the assumptions could have a major impact on the
calculation of the recoverable amount and the assumptions applied
by the company are thus important to the assessment as to whether 
an impairment is present. We have thus determined valuation of 
goodwill to represent a key audit matter for the group.
A description of goodwill and the impairment tests is included in 
note 17.
How our audit addressed this key audit matter
During our audit we have evaluated and tested the company’s 
process for the impairment test, for example by evaluating historic 
growth and current forecasts. We have also benchmarked with
peer companies in order to evaluate the reasonableness of the val-
uation and, through support of our valuation specialists, evaluated 
the chosen discount rate and assumptions on long-term growth. 
We have also evaluated the company’s model and method for 
executing the impairment test and made sensitivity analyses.
In our audit we have also examined whether the disclosures in 
the annual report are appropriate and in accordance with the as-
sumptions applied by group management.
Valuation of intangible assets

154
154
Other Information than the annual  
accounts and consolidated accounts
This document also contains other infor-
mation than the annual accounts and con-
solidated accounts and is found on pages 
1–54. The remuneration report for the fi-
nancial year 2020 also constitutes other in-
formation. The Board of Directors and the 
Managing Director are responsible for this 
other information. 
Our opinion on the annual accounts and 
consolidated accounts does not cover this 
other information and we do not express 
any form of assurance conclusion regard-
ing this other information.
In connection with our audit of the an-
nual accounts and consolidated accounts, 
our responsibility is to read the information 
identiﬁed above and consider whether the 
information is materially inconsistent with the 
annual accounts and consolidated accounts. 
In this procedure we also take into account 
our knowledge otherwise obtained in the 
audit and assess whether the information 
otherwise appears to be materially misstated.
If we, based on the work performed 
concerning this information, conclude that 
there is a material misstatement of this other 
information, we are required to report that 
fact. We have nothing to report in this regard.
Responsibilities of the Board of  
Directors and the Managing Director
The Board of Directors and the Managing 
Director are responsible for the preparation 
of the annual accounts and consolidated 
accounts and that they give a fair presen-
tation in accordance with the Annual 
Accounts Act and, concerning the consoli-
dated accounts, in accordance with IFRS as 
adopted by the EU. The Board of Directors 
and the Managing Director are also respon-
sible for such internal control as they deter-
mine is necessary to enable the prepara-
tion of annual accounts and consolidated 
accounts that are free from material mis-
statement, whether due to fraud or error.
In preparing the annual accounts and 
consolidated accounts, The Board of Di-
rectors and the Managing Director are re-
sponsible for the assessment of the com-
pany’s and the group’s ability to continue 
as a going concern. They disclose, as ap-
plicable, matters related to going concern 
and using the going concern basis of ac-
counting. The going concern basis of ac-
counting is however not applied if the 
Board of Directors and the Managing Di-
rector intends to liquidate the company, to 
cease operations, or has no realistic alter-
native but to do so.
The Audit Committee shall, without prej-
udice to the Board of Director’s responsi-
bilities and tasks in general, among other 
things oversee the company’s ﬁnancial re-
porting process.
Auditor’s responsibility
Our objectives are to obtain reasonable as-
surance about whether the annual ac-
counts and consolidated accounts as a 
whole are free from material misstatement, 
whether due to fraud or error, and to issue 
an auditor’s report that includes our opin-
ions. Reasonable assurance is a high level 
of assurance, but is not a guarantee that 
an audit conducted in accordance with 
ISAs and generally accepted auditing 
standards in Sweden will always detect a 
material misstatement when it exists. 
Misstatements can arise from fraud or error 
and are considered material if, individually 
or in the aggregate, they could reasonably 
be expected to influence the economic de-
cisions of users taken on the basis of these 
annual accounts and consolidated accounts.
As part of an audit in accordance with 
ISAs, we exercise professional judgment 
and maintain professional skepticism 
throughout the audit. We also:
–  Identify and assess the risks of material mis-
statement of the annual accounts and consoli-
dated accounts, whether due to fraud or error, 
design and perform audit procedures responsive 
to those risks, and obtain audit evidence that is 
sufﬁcient and appropriate to provide a basis for our 
opinions. The risk of not detecting a material 
misstatement resulting from fraud is higher than 
for one resulting from error, as fraud may involve 
collusion, forgery, intentional omissions, misrep-
resentations, or the override of internal control.
–  Obtain an understanding of the company’s in-
ternal control relevant to our audit in order to 
design audit procedures that are appropriate in 
the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of 
the company’s internal control. 
–  Evaluate the appropriateness of accounting policies 
used and the reasonableness of accounting es-
timates and related disclosures made by the 
Board of Directors and the Managing Director. 
–  Conclude on the appropriateness of the Board 
of Directors’ and the Managing Director’s use of 
the going concern basis of accounting in pre-
paring the annual accounts and consolidated 
accounts. We also draw a conclusion, based 
on the audit evidence obtained, as to whether 
any material uncertainty exists related to events 
or conditions that may cast signiﬁcant doubt on 
the company’s and the group’s ability to con-
tinue as a going concern. If we conclude that a 
material uncertainty exists, we are required to 
draw attention in our auditor’s report to the re-
lated disclosures in the annual accounts and 
consolidated accounts or, if such disclosures 
are inadequate, to modify our opinion about the 
annual accounts and consolidated accounts. 
Our conclusions are based on the audit evi-
dence obtained up to the date of our auditor’s 
report. However, future events or conditions 
may cause a company and a group to cease to 
continue as a going concern.
–  Evaluate the overall presentation, structure and 
content of the annual accounts and consolidated 
accounts, including the disclosures, and whether 
the annual accounts and consolidated accounts 
represent the underlying transactions and events 
in a manner that achieves fair presentation.
–  Obtain sufﬁcient and appropriate audit evidence 
regarding the ﬁnancial information of the entities 
or business activities within the group to ex-
press an opinion on the consolidated accounts. 
We are responsible for the direction, supervi-
sion and performance of the group audit. We 
remain solely responsible for our opinions. 
We must inform the Board of Directors of, 
among other matters, the planned scope 
and timing of the audit. We must also in-
form of significant audit findings during our 
audit, including any significant deficiencies 
in internal control that we identified.
We must also provide the Board of Di-
rectors with a statement that we have 
complied with relevant ethical requirements 
regarding independence, and to communi-
cate with them all relationships and other 
matters that may reasonably be thought to 
bear on our independence, and where ap-
plicable, actions taken to eliminate threats 
or related safeguards applied.
From the matters communicated with 
the Board of Directors, we determine those 
matters that were of most signiﬁcance in 
the audit of the annual accounts and con-
solidated accounts, including the most im-
portant assessed risks for material mis-
statement, and are therefore the key audit 
matters. We describe these matters in the 
auditor’s report unless law or regulation 
precludes disclosure about the matter.

Notes
155
Risks
Accounting principles
Financial statements
Board of Directors’ Report
155
Lund March 9, 2021  
 
Staffan Landén
Authorized Public Accountant
Karoline Tedevall
Authorized Public Accountant
Opinions
In addition to our audit of the annual ac-
counts and consolidated accounts, we 
have also audited the administration of the 
Board of Directors and the Managing 
Director of Alfa Laval AB (publ) for the year 
2020 and the proposed appropriations of 
the company’s profit or loss.
We recommend to the general meeting 
of shareholders that the proﬁt be appropri-
ated in accordance with the proposal in the 
statutory administration report and that the 
members of the Board of Directors and the 
Managing Director be discharged from liability 
for the ﬁnancial year.
Basis for opinions
We conducted the audit in accordance 
with generally accepted auditing standards 
in Sweden. Our responsibilities under those 
standards are further described in the 
Auditor’s Responsibilities section. We are 
independent of the parent company and 
the group in accordance with professional 
ethics for accountants in Sweden and have 
otherwise fulfilled our ethical responsibilities 
in accordance with these requirements.
We believe that the audit evidence we 
have obtained is sufﬁcient and appropriate 
to provide a basis for our opinions.
Responsibilities of the Board of  
Directors and the Managing Director
The Board of Directors is responsible for the 
proposal for appropriations of the company’s 
profit or loss. At the proposal of a dividend, 
this includes an assessment of whether the 
dividend is justifiable considering the require-
ments which the company's and the group’s 
type of operations, size and risks place on 
the size of the parent company's and the 
group’s equity, consolidation requirements, 
liquidity and position in general.
The Board of Directors is responsible for 
the company’s organization and the ad-
ministration of the company’s affairs. This 
includes among other things continuous 
assessment of the company’s and the 
group’s ﬁnancial situation and ensuring that 
the company's organization is designed so 
that the accounting, management of as-
sets and the company’s ﬁnancial affairs 
otherwise are controlled in a reassuring 
manner. The Managing Director shall man-
age the ongoing administration according 
to the Board of Directors’ guidelines and 
instructions and among other matters take 
measures that are necessary to fulﬁll the 
company’s accounting in accordance with 
law and handle the management of assets 
in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the 
administration, and thereby our opinion 
about discharge from liability, is to obtain 
audit evidence to assess with a reasonable 
degree of assurance whether any member 
of the Board of Directors or the Managing 
Director in any material respect:
–  has undertaken any action or been guilty 
of any omission which can give rise to li-
ability to the company, or
–  in any other way has acted in contraven-
tion of the Companies Act, the Annual 
Accounts Act or the Articles of Association.
Our objective concerning the audit of the 
proposed appropriations of the company’s 
profit or loss, and thereby our opinion 
about this, is to assess with reasonable 
degree of assurance whether the proposal 
is in accordance with the Companies Act.
Reasonable assurance is a high level of 
assurance, but is not a guarantee that an 
audit conducted in accordance with gener-
ally accepted auditing standards in Swe-
den will always detect actions or omissions 
that can give rise to liability to the com-
pany, or that the proposed appropriations 
of the company’s proﬁt or loss are not in 
accordance with the Companies Act.
As part of an audit in accordance with 
generally accepted auditing standards in 
Sweden, we exercise professional judg-
ment and maintain professional skepticism 
throughout the audit. The examination of 
the administration and the proposed ap-
propriations of the company’s proﬁt or loss 
is based primarily on the audit of the ac-
counts. Additional audit procedures per-
formed are based on our professional judg-
ment with starting point in risk and 
materiality. This means that we focus the 
examination on such actions, areas and re-
lationships that are material for the opera-
tions and where deviations and violations 
would have particular importance for the 
company’s situation. We examine and test 
decisions undertaken, support for decisions, 
actions taken and other circumstances that 
are relevant to our opinion concerning dis-
charge from liability. As a basis for our 
opinion on the Board of Directors’ pro-
posed appropriations of the company’s 
proﬁt or loss we examined the Board of Di-
rectors’ reasoned statement and a selec-
tion of supporting evidence in order to be 
able to assess whether the proposal is in 
accordance with the Companies Act.
Report on other legal and regulatory requirements  
Staffan Landén, Ernst & Young AB, Box 7850, 103 99 Stockholm, was appointed auditor of Alfa Laval AB by the general meeting of the 
shareholders on the 23rd of April 2020 and has been the company’s auditor since the 23rd of April 2018.
Karoline Tedevall, Ernst & Young AB, Box 7850, 103 99 Stockholm, was appointed auditor of Alfa Laval AB by the general meeting of the 
shareholders on the 23rd of April 2020 and has been the company’s auditor since the 23rd of April 2018.

156
Ten-year overview
Ten-year overview
Consolidated
 
 
 
 
SEK millions, unless otherwise stated
2020
2019
2018
2017
2016
2015
2014
2013 *
2012 **
2011
Profit and loss
 
Net sales
41,468
46,517
40,666
35,314
35,634
39,746
35,067
29,801
29,813
28,652
Comparison distortion items
-796
189
151
-
-1,500
0
-320
0
-51
-170
Operating income
5,580
7,198
5,831
4,589
2,989
5,717
4,667
4,353
4,396
4,691
Financial net
-603
23
65
-218
336
-273
-550
-181
133
-15
Result after financial items
4,977
7,221
5,896
4,371
3,325
5,444
4,117
4,172
4,529
4,676
Taxes
-1,397
-1,713
-1,359
-1,383
-1,013
-1,583
-1,149
-1,132
-1,306
-1,425
Net income for the year
3,580
5,508
4,537
2,988
2,312
3,861
2,968
3,040
3,223
3,251
Financial position
 
Goodwill
19,080
21,112
20,537
19,775
20,436
19,498
20,408
10,061
9,792
9,543
Other intangible assets
2,204
3,134
3,873
4,692
5,946
6,556
7,898
3,582
3,807
3,502
Property, plant and equipment
8,321
8,943
5,732
4,851
4,940
4,773
5,004
3,785
3,823
3,936
Other non-current assets
3,633
2,081
1,958
1,654
2,100
1,804
2,092
1,447
1,509
1,664
Inventories
9,223
10,077
9,253
8,424
7,831
7,405
7,883
6,312
6,176
6,148
Current receivables
10,631
12,582
11,807
8,808
8,431
8,964
9,791
7,671
8,050
7,663
Current deposits
2,618
873
617
1,208
1,075
1,021
697
605
427
483
Cash and cash equivalents
5,150
5,594
4,295
3,137
2,619
1,876
2,013
1,446
1,404
1,564
TOTAL ASSETS
60,860
64,396
58,072
52,549
53,378
51,897
55,786
34,909
34,988
34,503
 
Equity
29,071
27,747
23,599
20,500
20,276
18,423
17,202
16,162
14,453
15,144
Provisions for pensions etc.
2,494
2,321
2,118
2,297
2,425
1,931
2,221
1,494
1,727
852
Provisions for taxes
1,553
1,662
1,945
2,100
2,722
2,925
3,074
1,758
1,932
1,930
Other non-current liabilities
2,259
2,571
802
677
636
521
660
423
473
520
Non-current loans
8,043
10,600
8,540
11,092
12,169
12,484
16,454
3,529
5,393
5,060
Current liabilities
17,440
19,495
21,068
15,883
15,150
15,613
16,175
11,543
11,010
10,997
TOTAL EQUITY & LIABILITIES
60,860
64,396
58,072
52,549
53,378
51,897
55,786
34,909
34,988
34,503
* Restated to IFRS 11.   ** Restated to the new IAS 19.     
***Lease liabilities have increased by SEK 2,766 million as per January 1, 2019 due to the initial application of IFRS 16 Leases, which affects the net debt at December 31, 2019.
Changes in accounting standards
A reader of the ten-year overview should observe that accounting standards have 
changed repeatedly over this period of time. The major changes are the following.
During 2019 IFRS 16 ”Leases” was implemented, which meant that right-of use 
assets and lease liabilities increased by SEK 2,766 million as per January 1, 2019 in 
connection with the initial application.
In 2014 IFRS 11 ”Joint arrangements” was implemented as per January 1, 2013, 
which meant a restatement of the comparison ﬁgures for 2013.
In 2013 the revised IAS 19 ”Employee Beneﬁts” was implemented as per January 1, 
2012, which meant a restatement of the comparison ﬁgures for 2012.

Ten-year overview
Consolidated
 
 
 
 
SEK millions, unless otherwise stated
2020
2019
2018
2017
2016
2015
2014
2013 *
2012 **
2011
Key ratios
 
Orders received
39,833
44,119
45,005
36,628
32,060
37,098
36,660
30,202
30,339
28,671
Order backlog at year end
18,969
21,551
23,168
18,289
16,870
20,578
22,293
14,568
14,468
13,736
EBITA
6,435
8,178
6,869
5,610
4,680
6,811
5,571
4,914
4,883
5,117
EBITDA
7,569
9,251
7,495
6,239
5,323
7,478
6,136
5,360
5,330
5,566
EBITA-margin %
15.5%
17.6%
16.9%
15.9%
13.1%
17.1%
15.9%
16.5%
16.4%
17.9%
EBITDA-margin %
18.3%
19.9%
18.4%
17.7%
14.9%
18.8%
17.5%
18.0%
17.9%
19.4%
Adjusted EBITA
7,231
7,989
6,718
5,610
5,553
6,811
5,891
4,914
4,934
5,287
Adjusted EBITDA
8,365
9,062
7,344
6,239
6,196
7,478
6,456
5,360
5,381
5,736
Adjusted EBITA-margin %
17.4%
17.2%
16.5%
15.9%
15.6%
17.1%
16.8%
16.5%
16.5%
18.5%
Adjusted EBITDA-margin %
20.2%
19.5%
18.1%
17.7%
17.4%
18.8%
18.4%
18.0%
18.0%
20.0%
Profit margin %
12.0%
15.5%
14.5%
12.4%
9.3%
13.7%
11.7%
14.0%
15.2%
16.3%
Excl. goodwill and step-up values:
 
Capital turnover rate, times
3.9
4.4
7.4
5.7
8.6
10.6
7.9
6.4
6.7
6.3
Capital employed
10,751
10,649
5,474
6,201
4,146
3,734
4,447
4,657
4,430
4,560
Return on capital employed % 
59.9%
76.8%
125.5%
90.5%
112.9%
182.4%
125.3%
105.5%
110.2%
112.2%
Incl. goodwill and step-up values:
 
Capital turnover rate, times
1.2
1.3
1.3
1.1
1.2
1.3
1.3
1.6
1.7
1.8
Capital employed
33,678
35,550
30,729
31,698
30,663
31,512
27,259
18,598
17,833
16,324
Return on capital employed % 
19.1%
23.0%
22.4%
17.7%
15.3%
21.6%
20.4%
26.4%
27.4%
31.3%
Return on equity %
12.7%
21.3%
20.3%
13.9%
11.8%
21.7%
17.6%
17.9%
22.9%
22.9%
Solidity %
47.8%
43.1%
40.6%
39.0%
38.0%
35.5%
30.8%
46.3%
41.3%
43.9%
Net debt ***
3,635
8,175
6,985
8,200
9,619
11,688
15,068
2,611
4,270
3,264
Net debt to EBITDA, times ***
0.48
0.88
0.93
1.31
1.81
1.56
2.46
0.49
0.80
0.59
Debt ratio, times ***
0.13
0.29
0.30
0.40
0.47
0.63
0.88
0.16
0.30
0.22
Interest coverage ratio, times
27.3
32.8
39.3
28.4
24.5
22.3
18.2
22.1
23.2
28.6
Cash flow from: 
 
   operating activities
7,723
5,223
4,883
4,463
4,979
5,850
5,123
4,233
3,586
3,429
   investing activities
-1,058
-1,027
-1,293
-721
-795
-710
-14,970
-951
-3,260
-5,497
   financing activities
-6,917
-2,945
-2,445
-3,159
-3,566
-5,229
10,250
-3,191
-407
2,317
Investments
1,232
1,337
1,490
675
617
674
603
492
531
555
Average number of employees
17,160
17,387
16,785
16,521
17,305
17,486
17,109
16,238
16,060
14,667
Earnings per share, SEK
8.47
13.08
10.77
7.09
5.46
9.15
7.02
7.22
7.64
7.68
Free cash flow per share, SEK
15.89
10.00
8.56
8.92
9.97
12.25
-23.48
7.82
0.78
-4.93
* Restated to IFRS 11.   ** Restated to the new IAS 19.     
***Lease liabilities have increased by SEK 2,766 million as per January 1, 2019 due to the initial application of IFRS 16 Leases, which affects the net debt at December 31, 2019.
 
Observe that certain ﬁnancial measures above constitute alternative performance measures.
Alfa Laval AB (publ)
Box 73
SE-221 00 Lund
Corporate Registration Number:
556587-8054
Visiting address:
Rudeboksvägen 1
Tel: + 46 46 36 65 00
Website: www.alfalaval.com
 
Production: Alfa Laval AB / Bysted AB   
Prepress and printing:  Taberg Media Group, Malmö, 2021
Translation: The Bugli Company

Alternative performance measures
An alternative performance measure is a financial 
measure of historical financial performance, financial 
position or cash flows, other than a financial measure 
defined or specified in the financial reporting framework. 
In the annual report, the following alternative perfor-
mance measures have been used (all of these alternative 
performance measures relate to actual historical figures 
and never to expected performance in future periods):
Measures to achieve full comparability 
over time. 
All of these concern the comparison distorting impact 
from above all amortisation of step-up values both over 
time and compared to external companies. For the same 
reasons adjustments are also made for comparison 
distortion items. How they are calculated is exhibited in the 
Income analysis table on page 89, except for the last one.
–  EBITA or Earnings Before Interests, Taxes and 
Amortisation is defined as operating income before 
amortisation of step-up values. This measure of result 
is fully comparable over time independent of the financ-
ing costs and the amortisation of step-up values that 
from time to time burden the Group.
–  EBITA margin (%) is defined as EBITA in relation to 
net sales and expressed in percent.  
–  EBITDA or Earnings Before Interest, Taxes, Depreciation 
and Amortisation is defined as operating income be-
fore depreciation and amortisation of step-up values. 
This measure of result is fully comparable over time 
independent of the financing costs, the depreciation 
and the amortisation of step-up values that from 
time to time burden the Group. 
–  EBITDA margin (%) is defined as EBITDA in relation 
to net sales and expressed in percent.
–  Adjusted EBITA or Adjusted Earnings Before Interests, 
Taxes and Amortisation is defined as operating income 
before amortisation of step-up values, adjusted for 
comparison distortion items. This measure of result 
is fully comparable over time independent of the 
comparison distortion items, the financing costs and 
the amortisation of step-up values that from time to 
time burden the Group.
–  Adjusted EBITA margin (%) is defined as Adjusted 
EBITA in relation to net sales and expressed in percent.  
–  Adjusted EBITDA or Adjusted Earnings Before Interest, 
Taxes, Depreciation and Amortisation is defined as 
operating income before depreciation and amortisation 
of step-up values, adjusted for comparison distortion 
items. This measure of result is fully comparable over 
time independent of the comparison distortion items, 
the financing costs, the depreciation and the amorti-
sation of step-up values that from time to time burden 
the Group. 
–  Adjusted EBITDA margin (%) is defined as Adjusted 
EBITDA in relation to net sales and expressed in percent.
–  Adjusted gross profit is defined as gross profit ex-
cluding amortisation of step-up values. This measure 
of result is fully comparable over time independent of 
the amortisation of step-up values that from time to 
time burden the Group.
–  Adjusted gross margin (%) is defined as Adjusted gross 
profit in relation to net sales and expressed in percent.
–  Earnings per share, excluding amortisation of 
step-up values and the corresponding tax is de-
fined as net income attributable to the owners of the 
parent, excluding amortisation of step-up values and 
the corresponding tax divided by the average num-
ber of shares. The net income attributable to the 
owners of the parent is presented in the consolidat-
ed comprehensive income statement and the amor-
tisation of step-up values is exhibited in the Income 
analysis table on page 89, while the corresponding tax 
is SEK 191 (235) million. This key figure is fully com-
parable over time independent of the amortisation of 
step-up values that from time to time burden the Group.
Measures to show how the Group is 
funded and manages its capital:
–  Return on capital employed (%) is defined as EBITA 
in relation to average capital employed, calculated 
on 12 months’ revolving basis and expressed in per-
cent. Capital employed is defined as total assets less 
liquid funds, other long-term securities, accrued interest 
income, operating liabilities and other non-interest- 
bearing liabilities, including tax and deferred tax, but 
excluding accrued interest costs. The measure shows 
how well the capital that is used in the operations is 
managed.
–  Net debt is defined as interest-bearing liabilities in-
cluding interest-bearing pension liabilities and capi-
talised financial leases less liquid funds. The calculation 
of net debt is exhibited in the Net debt table in Note 29. 
The measure shows the net financial indebtedness.
–  Net debt to EBITDA, times is defined as Net debt 
in relation to EBITDA, calculated on 12 months’ re-
volving basis and expressed as a multiple of EBITDA. 
This is one of the covenants of Alfa Laval’s loans and 
an important key figure when reviewing the proposed 
dividend. EBITDA or Earnings Before Interest, Taxes, 
Depreciation and Amortisation is defined as operating 
income before depreciation and amortisation of 
step-up values.
–  Debt ratio, times is defined as Net debt in relation 
to equity at the end of the period and expressed as 
a multiple of the equity. This is another measure of 
how the Group is funded.
–  Interest coverage ratio, times is defined as 
EBITDA plus financial net increased by interest costs 
in relation to interest costs. Expressed as a multiple 
of interest costs. Gives an expression for the Group’s 
ability to pay interest. The reason EBITDA is used as 
the starting point is that this forms the starting point 
for a cash flow perspective on the ability to pay inter-
est. Financial items classified as comparison distort-
ing are excluded from the calculation.
 
Deﬁnitions of other performance measures
Net sales
Revenues from goods sold and services performed 
that are part of the ordinary operations of the Group, 
after deduction for given discounts, value added tax 
and other tax directly linked to the sales.
Comparison distortion items
Items that do not have any link to the normal operations 
of the Group or that are of a non-recurring nature, where 
a reporting together with other items in the consolidated 
comprehensive income statement would have given a 
comparison distortion effect that would have made it 
difficult to judge the development of the ordinary oper-
ations for an outside viewer.
Orders received
Incoming orders during the year, calculated in the same 
way as net sales. The orders received give an indication 
of the current demand for the Group’s products and 
services, that with a varying delay appear in net sales.
Order backlog at year-end
Incoming orders that not yet have been invoiced. The 
order backlog at the end of the year is equal to the 
sum of the order backlog at the beginning of the year 
plus the orders received during the year less the net 
sales for the year. It gives an indication of how the net 
sales can be expected to develop in the future.
Proﬁt margin %
Result after financial items in relation to net sales, ex-
pressed in percent.
Capital turnover rate, times
Net sales in relation to average capital employed, ex-
pressed as a multiple of capital employed. Shown ex-
cluding and including goodwill, step-up values and the 
corresponding deferred tax liability.
Capital employed
Average total assets less liquid funds, other long-term 
securities, accrued interest income, operating liabilities 
and other non-interest-bearing liabilities, including tax 
and deferred tax, but excluding accrued interest costs. 
Shown excluding and including goodwill and step-up 
values and the corresponding deferred tax liability. 
Shows the capital that is used in the operations. The 
capital employed for the Group differs from the net 
capital for the operating segments concerning taxes, 
deferred taxes and pensions.
Return on equity %
Net income for the year in relation to average equity, 
expressed in percent. 
Solidity %
Equity in relation to total assets, expressed in percent.
Cash ﬂow from operating activities
Shows the Group’s cash flow from operating activities, 
that is the cash flow generated in the daily operational 
activities.
Cash ﬂow from investing activities
Shows the Group’s cash flow from investing activities, 
i.e. the cash flow generated by mainly the Group’s in-
vestments in fixed assets, divestments and acquisi-
tions of businesses and divestments of real estate.
Cash ﬂow from ﬁnancing activities
Shows the Group’s cash flow from financing activities, 
that is mainly dividends, increase and amortisation of 
loans and the cash flow components of the financial net.
Investments
Investments represent an important component in the 
cash flow for the Group. The level of investments dur-
ing a couple of years gives a picture of the capacity 
build up in the Group. 
Average number of employees
The costs that are related to the number of employees 
represent a large part of the total costs for the Group. 
The development of the average number of employ-
ees over time in relation to the development of the net 
sales therefore gives an indication of the cost rationali-
sation that is taking place.
Earnings per share
Net income for the year attributable to the equity holders 
of the parent divided by the average number of shares.
Free cash ﬂow per share
The sum of cash flows from operating and investing 
activities for the year divided by the average number of 
shares. This represents the cash flow available for in-
terest payments, amortisation and dividends to investors. 
Alternative performance measures and definitions

Alfa Laval uses a number of channels to provide information about the company’s 
operations and ﬁnancial development. The website – www.alfalaval.com/investors 
– is updated continuously with annual reports, quarterly reports, press releases 
and presentations. Annual reports are also sent to those shareholders who have 
notiﬁed the company that they wish to receive a copy. Conference calls with 
analysts, investors and the media are arranged by Alfa Laval in conjunction with 
the publication of the company’s quarterly reports. A capital markets day is or-
ganized each year, during which representatives from the ﬁnancial market are 
offered more in-depth information regarding the company’s operations. In addition, 
representatives of Group management meet with analysts, investors and jour-
nalists on an ongoing basis to ensure that they have correct and current information. 
Pursuant to the company’s agreement with Nasdaq Stockholm, information 
that could have an effect on the share price and that is not yet publicly known 
is never disclosed in conjunction with these types of meetings or contacts. 
Alfa Laval employs a so-called silent period of three weeks prior to the publi-
cation of a quarterly report. The President and Chief Financial Ofﬁcer do not 
meet or speak to representatives from the ﬁnancial market during this period.
Financial information
Financial information during 2021
Alfa Laval will publish quarterly reports on  
the following dates in 2021:
Year-end report 2020 
February 3
First-quarter report 
April 27
Second-quarter report July 20
Third-quarter report 
October 26
Shareholder information
Johan Lundin
Head of Investor Relations
Tel: +46 46 36 74 82
e-mail: johan.lundin@alfalaval.com
Analysts tracking Alfa Laval
Annual General Meeting 2021
The Annual General Meeting of Alfa Laval AB (publ) will be held on Tuesday, 
April 27, 2021, at 4:00 p.m. In accordance with the company’s Articles of 
Association, notice of the Annual General Meeting will be inserted as an an-
nouncement in the Swedish Ofﬁcial Gazette and on the company’s website 
not more than six and not less than four weeks prior to the Meeting. An an-
nouncement that notiﬁcation has been issued will be placed in Dagens Ny-
heter. As a service to existing shareholders, information about the Annual 
General Meeting can also be sent to them by mail. The following information 
concerning the Meeting does not constitute legal notice.
Notiﬁcation of participation
In light of the extraordinary situation as a result of the COVID-19 pandemic, 
Alfa Laval AB’s Annual General Meeting 2021 will be conducted by advance 
voting with the support of temporary legislation. A physical meeting with the 
opportunity to attend in person or through a representative will thus not be 
held. To be entitled to participate and vote at the meeting, a shareholder must 
be listed as a shareholder in the share register maintained by Euroclear Sweden 
AB regarding conditions on 19 April 2021 and register for the meeting no later 
than 26 April 2021. A shareholder registers at the meeting by submitting an 
advance vote according to the instructions contained in the summons. To be 
entitled to participate in the meeting, shareholders whose shares are registered 
with a nominee must have the shares registered in their own names so that 
the shareholder is entered in the share register as of April 19, 2021. Such 
registration may be temporary (so-called voting rights registration) and is re-
quested from the trustee in such time in advance as the trustee determines.
Notiﬁcation of participation shall be made to:
–  Alfa Laval AB, Group Staff Legal,  
Box 73, SE-221 00 Lund, Sweden
– E-mail: arsstamma.lund@alfalaval.com
– Website: www.alfalaval.com
– Tel: +46 46 36 74 00 or +46 46 36 65 00.
Shareholders must state their name, personal identity number and tele-
phone number on the notice of participation. If participation is by proxy, a 
power of attorney or authorization must be submitted to the company prior 
to the Meeting.
Meeting program
4:00 p.m.    Start of Meeting
Dividend
The Board of Directors and the President propose that a dividend of SEK 
5.50 per share be distributed to shareholders. The proposed record date for 
the dividend is Thursday, April 29, 2021. If the Annual General Meeting ap-
proves the proposal, the dividend is expected to be distributed by Euroclear 
Sweden AB on Tuesday, May 4, 2021. The record date and dividend pay-
ment date may be postponed due to the technical procedures required for 
the execution of the payment.
ABG Sundal Collier
Karl Bokvist
karl.bokvist@abgsc.se
Tel: +46 8 5662 8633
ALPHAVALUE
Luis Pereira
capitalgoods@alphavalue.eu
Tel: +33 1 70 61 10 65
Bank of America Merrill Lynch
Madhvendra Singh
madhvendra.singh@bofa.com
Tel: +44 20 7995 6105
Barclays Capital
Lars Brorson
lars.brorson@barclays.com
Tel: +44 20 3134 1156
Carnegie
Johan Wettergren
johan.wettergren@carnegie.se
Tel: +46 8 5886 87 43
Citi Investment Research
Klas Bergelind
klas.bergelind@citi.com
Tel: +44 207 986 4018
Commerzbank
Malte C. Schulz
malte.schulz@commerzbank.com
+44 20 747 59353
Credit Suisse
Max Yates
max.yates@credit-suisse.com
Tel: +44 20 7883 8501
Danske Bank
Johan Sjöberg
johan.sjoberg@danskebank.se
Tel: +46 8 68 805 35
DNB
Mattias Holmberg
mattias.holmberg@dnb.se
Tel: +46 8 473 48 14
Goldman Sachs International
Daniela Costa
daniela.costa@gs.com
Tel: +44 20 7774 8354
JP Morgan
Andrew Wilson
glen.liddy@jpmorgan.com
Tel: +44 20 7742 6332
Kepler Cheuvreux
Johan Eliason
jeliason@keplercheuvreux.com
Tel: +46 8 723 51 63
Morgan Stanley
Robert J. Davies
robert.j.davies@morganstanley.com
Tel: +44 20 7425 2057
Morningstar
Denise Molina
denise.molina@morningstar.com
Tel: +31 20 797 0010
Nordea
Andreas Koski
andreas.koski@nordea.com
Tel: +46 10 157 02 29
Pareto Securities
Anders Roslund
anders.roslund@paretosec.com
Tel: +46 8 402 52 88
RBC Capital Markets
Sebastian Kuenne
sebastian.kuenne@rbccm.com
Tel: +44 20 742 98932
SEB
Fredrik Agardh
fredrik.agardh@enskilda.se
Tel: +46 8 522 298 06
UBS
Sven Weier
sven.weier@ubs.com
Tel: +49 69 1369 8278

100002995-1-EN 2103
This is Alfa Laval
Alfa Laval is active in the areas of Energy, Marine, and 
Food & Water, offering its expertise, products, and service 
to a wide range of industries in some 100 countries. The 
company is committed to optimizing processes, creating 
responsible growth, and driving progress – always going 
the extra mile to support customers in achieving their 
business goals and sustainability targets.
Alfa Laval’s innovative technologies are dedicated to 
purifying, reﬁning, and reusing materials, promoting more 
responsible use of natural resources. They contribute to 
improved energy efﬁciency and heat recovery, better 
water treatment, and reduced emissions. Thereby, Alfa 
Laval is not only accelerating success for its customers, 
but also for people and the planet. Making the world 
better, every day. It’s all about Advancing better™.
How to contact Alfa Laval
Up-to-date Alfa Laval contact details for all countries are 
always available on our website at www.alfalaval.com