Alfa Laval www alfalaval com Sustainability Reporting at

© Alfa Laval www. alfalaval. com

Sustainability Reporting at Alfa Laval Reflections on ’The EU Directive (2014/95/EU) on non-financial and diversity information: Is a new toothless tiger born? ’ 24 April 2018 © Alfa Laval Catarina Paulson www. alfalaval. com

Agenda Setting the scene: Alfa Laval − About the company − Sustainability − Reporting The EU directive − What it meant for Alfa Laval’s reporting A few concluding remarks © Alfa Laval Slide 3 www. alfalaval. com

Solutions Alfa Laval aims at creating better everyday conditions for people by providing highly efficient and environmentally responsible Alfa Laval aims at creating better solutions for energy production, water supply and food. everyday conditions for people by providing highly efficient and environmentally responsible solutions for energy production, water supply and food. © Alfa Laval Slide 4 www. alfalaval. com

Our corporate mission To optimize the performance of our customers’ processes. Time and time again. © Alfa Laval Slide 5 www. alfalaval. com

Key technologies − Heat transfer Energy saving solutions for heating, cooling, ventilation, evaporation and condensation Products: Plate heat exchangers, including brazed and welded heat exchangers Shell-and-tube heat exchangers Air heat exchangers Spiral heat exchangers Thermal fluid systems Boilers © Alfa Laval Slide 6 www. alfalaval. com

Key technologies − Separation Efficient separation of liquids from liquids, of particles from liquids and of fluids and solids from gases Products: High speed separators Decanters Membrane filtration © Alfa Laval Slide 7 www. alfalaval. com

Key technologies − Fluid handling Safe transport and control of fluids Products: Pumps (hygienic and marine applications) Valves Mixers Tank equipment Installation material © Alfa Laval Slide 8 www. alfalaval. com

Capital sales / Technology Heat transfer 47% 22% 18% 13% Separation Other Fluid handling © Alfa Laval Slide 9 www. alfalaval. com

Key figures 2017 − MEUR (1 EUR = 9. 63438 SEK) Order intake 3 802 Invoicing 3 665 Adj EBITA 582 Adj EBITA as % of sales 15. 9 ROCE as % 17. 7 Average No. of employees © Alfa Laval 16 521 Slide 10 www. alfalaval. com

Sustainability Business Principles © Alfa Laval Business Opportunities Slide 11 www. alfalaval. com

Business Principles Social Respect for human rights Business integrity High ethical standards Environment Optimizing the use of natural resources Transparency Commitment to open dialogue © Alfa Laval Slide 12 www. alfalaval. com

Business Opportunities Alfa Laval solutions contribute to the UN Global Goals Our solutions help create better everyday conditions for people: • Energy efficiency • Water supply • Safe food © Alfa Laval Slide 13 www. alfalaval. com

Reporting history 2003 2010 2015 Drivers Reputation: ”Licence to operate” Stakeholders: Customers/owners Business: ”Licence to Grow” Content Presentation of Business Principles Progress on Business Principles & Business Opportunities External frameworks Global Compact Global Reporting Initiative/CDP EU Directive 2014/95/EU Summary Reactive Active Proactive © Alfa Laval Slide 14 www. alfalaval. com

Alfa Laval Sustainability Report 2017 Business Principles Business opportunities v Implementing Business Principles and policies across the value chain v Our products & service support our customers in reaching their environmental targets v Sustainability-related risks & mitigation actions v Alfa Laval contributes to achieving the UN Global Goals © Alfa Laval Slide 15 www. alfalaval. com

EU Directive: What difference did it make? Business Principles Business opportunities v Implementing Business Principles and policies across the value chain v Our products & service support our customers in reaching their environmental targets v Sustainability-related risks & mitigation actions v Alfa Laval contributes to achieving the UN Global Goals © Alfa Laval Slide 16 www. alfalaval. com

EU Directive – impact and effect EU Directive did not change what we report in any significant manner It did have an impact on how we report © Alfa Laval Slide 17 www. alfalaval. com

Concluding thoughts Regulating reporting not a change agent − But a catalyst Small companies vs. Multinationals The value of human & natural resources vs. financial value? © Alfa Laval Slide 18 www. alfalaval. com

What really makes a difference may not be legislation… Examples of how our offering contributes to the UN Global Goals 2 Alfa Laval products and solutions improve shelf life, reduce waste and make food production hygienic and safe. 3 Alfa Laval delivers efficient, hygienic equipment that delivers sustainable performance to the pharmaceutical industry. 12 Alfa Laval’s ambition is to make every new product more efficient than its predecessor in a life cycle perspective. © Alfa Laval 6 Alfa Laval offers a wide range of technologies to treat wastewater contributing to clean water across the globe. 14. Alfa Laval offers a whole range of products in the areas of energy and environment, mainly for customers in the marine industry. 9 Alfa Laval invests heavily in R&D, launches between 30 -40 new products per year and has over 3, 000 patents. 7 Alfa Laval products are involved throughout the renewable production process, from heating and cooling to mixing and separation. 17 Alfa Laval has been a signatory of the UN Global Compact since 2011. www. alfalaval. com

© Alfa Laval www. alfalaval. com