Andritz Ag · VIE:ANDR

Andritz — Investor Day (2012)

40 slides from Andritz's investor day presentation, 2012

  1. Slide 1: ANDRITZ GROUP Capital Market Days 2012, Germany

    ANDRITZ GROUP Capital Market Days 2012, Germany

  2. Slide 2: Contents

    Contents 1. Major developments since last Capital Market Days: ▪ Order intake ▪ Acquisitions 2. Update on outlook and goals for the business areas 3. Review of goals of past Capital Market Days and goals 2012 4. Summary

  3. Slide 3: Average quarterly order intake 2007-2011 and past four quarters (I)

    Average quartely order intake 2007-2011 and of past four quarters (I) Order intake Group (MEUR) 1,427* 1,154 1,361 937 926 1,033 837 808 2007 2008 2009 2010 2011 Q3/11-Q2/12: quarterly average * Order intake 2011 includes two large greenfield pulp mill orders (total amount: ~1.1 bn. EUR) Order intak

  4. Slide 4: Average quarterly order intake 2007-2011 and past four quarters (II)

    Average quartely order intake 2007-2011 and of past four quarters (II) Order intake PULP & PAPER (MEUR) 666 402 530 352 347 259 231 313 2007 2008 2009 2010 2011 Q3/11-Q2/12: quarterly average Order intake SEPARATION (MEUR) 117 119 135 106 87 90 76 95 2007 2008 2009 2010 2011 Q3/11-Q2/12: quarterly a

  5. Slide 5: Average quarterly order intake 2007-2011 and past four quarters (III)

    Average quartely order intake 2007-2011 and of past four quarters (III) Order intake METALS (MEUR) 159 153 74 76 80 62 71 47 2007 2008 2009 2010 2011 Q3/11-Q2/12: quarterly average Order intake FEED & BIOFUEL (MEUR) 40 44 51 36 39 37 33 34 2007 2008 2009 2010 2011 Q3/11-Q2/12: quarterly average 5 AN

  6. Slide 6: ANDRITZ exposure to Eastern and Southern Europe limited

    ANDRITZ exposure to Eastern and Southern Europe limited ‘PIGS countries’ account for only ~3% of Group sales Sales ANDRITZ GROUP (MEUR) 4,596 3,610 3,554 ■ Others 3,283 3,198 ■ PIGS (Portugal, Italy, Greece, Spain) ■ Eastern Europe ■ China 3% 7% 12% 2007 2008 2009 2010 2011 6 ANDRITZ GROUP – Wolfgan

  7. Slide 7: Acquisition of Schuler AG

    Acquisition of Schuler AG ANDRITZ has access to 89.24% of Schuler shares  At the end of May 2012, ANDRITZ signed an agreement with Schuler-Beteiligungen GmbH to acquire its entire 38.5% stake in Schuler AG, Germany; purchase price: 20.00 EUR/share  ANDRITZ bought 24.99% stake in Schuler after anno

  8. Slide 8: Schuler: Global leader in metal-forming technology

    Schuler: Global leader in metal-forming technology, broadening ANDRITZ’s product range in METALS  Global market leader for metal-forming equipment (complete pressing lines, single presses, automation systems, and services)  Main end customer industries: automotive and automotive suppliers (~75%),

  9. Slide 9: ANDRITZ Soutec: A leading supplier of welding systems

    ANDRITZ Soutec A leading supplier of welding systems Products and services: Laser and rolled seam resistance welding systems for the metalworking industry Strategic fit: Welding systems for tailor-welded blanks Headquarters: Neftenbach, Switzerland Number of employees: ~90 Annual sales: ~30 MEUR Imp

  10. Slide 10: Global automobile manufacturing to grow by 4% p.a.

    Global automobile manufacturing to grow by 4% p.a. Strongest growth in emerging markets Million units 100 94 90 90 85 82 80 78 76 CAGR 2008-2016E 73 70 67 ■ Others (South America, 60 58 South Africa) +6.1% 50 ■ China +15.7% 40 ■ Asia (without China) +1.5% 30 ■ USA +3.0% 20 ■ Europe +0.6% 10 0 2008 2

  11. Slide 11: China expected to show strongest growth in automobile manufacturing

    China expected to show strongest growth in automobile manufacturing Source: OICA, PwC, JSC Automotive, figures include number of cars and light commercial vehicles (without heavy trucks, buses, and coaches); Others include South America and South Africa 11 ANDRITZ GROUP – Wolfgang Leitner – Capital

  12. Slide 12: Tailor-welded blanks volume worldwide

    Tailor-welded blanks volume worldwide China again outpaces rest of the world MEUR 350 319 309 298 300 271 274 265 247 243 244 250 CAGR 2008-2016 ■ Mercosur +3.4% 200 ■ China, rest of Asia +7.8% ■ Japan +0.4% 150 ■ Nafta +1.4% 100 ■ Europe +1.3% 50 0 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E

  13. Slide 13: Goal to reduce CO2 and fuel consumption

    Goal to reduce CO2 and fuel consumption: ANDRITZ offers technologies for bio-ethanol/bio-diesel and weight reduction Alternatives for CO2 reduction:  Smaller cars  Gas/electric/hybrid cars  Bio-ethanol/bio-diesel  Weight reduction  Tailor-welded blanks  Hot-forming  Aluminum casting  Plastic

  14. Slide 14: Contents

    Contents 1. Major developments since last Capital Market Days 2. Update on outlook and goals for the business areas 3. Review of goals of past Capital Market Days and goals 2012 4. Summary

  15. Slide 15: HYDRO Market update and outlook

    HYDRO Market update and outlook Market drivers  Old installed base in developed world leads to contin- uous investment in modernization and rehabilitation of installed turbines and generators  Population growth and economic growth in emerging markets drive demand for new hydropower stations or maj

  16. Slide 16: EBITA margin goal HYDRO

    EBITA margin goal HYDRO 7.0-8.0% Influencing factors on margin  Execution of some large orders  Competition from Asia?  Investment in new markets (e.g. tidal current turbines) 2010 et seq.: 7.0-8.0% 2006*-2009: avg. 6.6% 8.3 7.3 7.3 7.5 7.5 avg. 2010- 5.9 5.7 H1 2012: 7.8% 2006 2007 2008 2009 201

  17. Slide 17: Strong organic growth of ANDRITZ HYDRO

    Strong organic growth of ANDRITZ HYDRO Consolidation Consolidation Consolidation Consolidation VA TECH effect VA TECH GEʼs hydro effect GEʼs hydro 1,773 HYDRO as of HYDRO in business as of business in June 30, 2006 H1 2007 June 30, 2008 H1 2009 1,579 1,378 1,206 910 468 +94.5%, +32.5%, +14.3%, +14.6

  18. Slide 18: ANDRITZ HYDRO with limited business in China and low exposure to Southern Europe

    ANDRITZ HYDRO with limited business in China and low exposure to Southern Europe Sales ANDRITZ HYDRO (MEUR) 1,773 1,579 ■ Others 1,378 ■ PIGS (Portugal, Italy, Greece, Spain) 1,206 ■ Eastern Europe ■ China 910 5% 4% 5% 18 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Days 2012, Germany

  19. Slide 19: New turbine capacity orders by region

    New turbine capacity orders (units >10 MW) by region China boom 2007/2008, strong increase in South America 2011 Ordered Hydro Hydro ■ Others ■ Order intake ANDRITZ HYDRO capacity boom boom ■ China MW China China ■ Asia (without China) * New capacity orders amount to approx. 40% of ANDRITZ 60,000 HY

  20. Slide 20: Installed hydropower capacity by region

    Installed hydropower capacity by region Strong growth in Asia due to investment boom 2007/2008 Installed capacity MW 976,000 926,000 937,000 4% 887,000 848,000 24% CAGR 2007-2011 ■ Others +3% 15% ■ China +12% ■ Asia (without China) +5% 14% ■ South America +0% 18% ■ USA +0% ■ Europe (incl. Turkey and

  21. Slide 21: PULP & PAPER Market update and outlook

    PULP & PAPER Market update and outlook Market drivers  Continuation of shifting pulp production capacities from the northern to the southern hemisphere driven by high profitability of greenfield pulp mills built in southern hemisphere as well as rising pulp demand in Asia (particularly in China) 

  22. Slide 22: Long-term pulp price development vs. new greenfield and brownfield orders

    Long-term pulp price development vs. new greenfield and brownfield orders since 2000 New capacity (greenfield) USD Greenfield Hardwood ANDRITZ and added capacity Brownfield Softwood Metso (brownfield) in million t/a 2.5 NBSK 2.0 BHK 1.5 1.5 1.5 1.3 1.3 1.3 1.3 1.1 1.1 1.0 1.0 Arauco Nueva Aldea* 0.8

  23. Slide 23: Current pulp mill projects I

    Current pulp mill projects I Stora Enso: Beihai, China  November 2005: Stora Enso strengthens its presence in Guangxi and purchases 34,000 ha of timber and land use rights (company press release)  September 2006: Stora Enso expands its plantations in Guangxi (RISI news)  April 2007: Stora Enso ac

  24. Slide 24: Current pulp mill projects II

    Current pulp mill projects II CMPC: Guaiba, Brazil  August 2008: Metso to supply pulping technology for Aracruz in Brazil (RISI news)  August 2008: Aracruz lays cornerstone for Guaiba construction work (RISI)  December 2009: CMPC to expand Brazilian pulp mill (RISI)  November 2011: CMPC expects

  25. Slide 25: EBITA margin goal PULP & PAPER

    EBITA margin goal PULP & PAPER 6.0-7.0% Influencing factors on margin  Execution of large pulp mill orders  Share of service business/wear parts lower than at competitors  Investment in new markets (nonwoven, plastic films, biofuel) 2010 et seq.: 6.0-7.0% 2000-2004: avg. 6.1% 2005-2009: avg. 5.0%

  26. Slide 26: SEPARATION Market update and outlook

    SEPARATION Market update and outlook Market drivers  Environment: Population growth and urbanization drive demand for water and waste water treatment  Mining and minerals: The search for raw materials, driven by economic growth and limitation of available production sites, leads to investment acti

  27. Slide 27: EBITA margin goal SEPARATION

    EBITA margin goal SEPARATION 7.0-9.0% Influencing factors on margin  Cost overruns on some projects  Investment in expansion into new markets (mining) and of service business  Acquisitions 2010 et seq.: 7.0-9.0% 2005-2009: avg. 6.8% 8.5 2000-2004: avg. 3.0% 7.6 7.9 7.1 7.4 6.1 avg. 2010- 5.7 5.6

  28. Slide 28: METALS Market update and outlook

    METALS Market update and outlook Market drivers  Continuing low project activity expected due to prevailing over-capacities in developed world  low capacity utilization rates, thus limited capex by steel/stainless steel producers  Growing middle-class in emerging markets to lead to demand increas

  29. Slide 29: EBITA margin goal METALS

    EBITA margin goal METALS 4.0-6.0% Influencing factors on margin  No volume growth expected in the short-term due to weak market environment  Development of automobile market (Schuler)  Expansion of service business rather limited 2005-2009: avg. 6.3% 2010 et seq.: 4.0-6.0% 2000-2004: avg. 4.0% 7.

  30. Slide 30: FEED & BIOFUEL Market update and outlook

    FEED & BIOFUEL Market update and outlook Market drivers  Solid growth expected for special feed production equipment due to growth of world population and limited natural resources of fish and aquatic fauna  Demand for wood pellets to be pushed by trend towards renewable energies Higher throughput

  31. Slide 31: EBITA margin goal FEED & BIOFUEL

    EBITA margin goal FEED & BIOFUEL 7.0-8.0% Influencing factors on margin  Investment in further expansion of market position in biomass pelleting  Focus on increasing profitability of capital business  High share of service/wear parts 2010 et seq.: 7.0-8.0% 2005-2009: avg. 7.0% 9.7 2000-2004: avg.

  32. Slide 32: Contents

    Contents 1. Major developments since last Capital Market Days 2. Update on outlook and goals for the business areas 3. Review of goals of past Capital Market Days and goals 2012 4. Summary

  33. Slide 33: Review of Capital Market Days goals

    Review of Capital Market Days goals: sales and dividend goals achieved, pending margin goal reached in 2010 and 2011 Goal achieved Goal not achieved Goal pending Share of renewable Sales: 3.0 bn. EUR 4.0/4.5 bn. EUR energy sales > 50% EBITA 7.0% over the cycle 7.0% 7.0% margin: (goal achieved in 201

  34. Slide 34: Sales outlook 2012 and 2013

    Sales outlook 2012 and 2013 2012: Sales increase to approx. 5 billion EUR expected, mainly due to processing of the large pulp mill orders received in 2011 2013: first-time consolidation of Schuler Sales of the ANDRITZ GROUP (MEUR) ~0.5-1.0 bn. EUR Schuler* ~5,000 ~5,000 4,596 3,610 3,554 3,283 3,19

  35. Slide 35: Target to continue long-term profitable growth

    Target to continue long-term profitable growth 7.0% EBITA margin over the cycle 2010 et seq.: 7.0% over the cycle 2005-2009: avg. 6.0% 2000-2004: avg. 5.3% 8.0 7.2 7.2 6,000 7.0 6.5 6.3 6.4 6.4 ~5,000 ~5,000 6.1 6.1 6.0 4,596 5,000 5.2 5.3 5.1 5.1 * 5.0 4.7 4,000 3,554 3,610 3,283 4.0 2,710 3,000 3,

  36. Slide 36: Confirmation of dividend goal

    Confirmation of dividend goal Sustainable dividend payout ratio on top of strong sales growth Dividend goals:  Keep payout ratio at least at ~50%  Mid-term increase to ~60% Dividend per share (EUR) Payout ratio (%) 36 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Days 2012, Germany

  37. Slide 37: Contents

    Contents 1. Major developments since last Capital Market Days 2. Update on outlook and goals for the business areas 3. Review of goals of past Capital Market Days and goals 2012 4. Summary

  38. Slide 38: Summary

    Summary  Long-term structural trends within all five business areas should support long-term organic growth of ANDRITZ.  Acquisitions will remain strategic focus to complement product range and support long-term growth.  Cautious market environment but still good project activity in all business

  39. Slide 39: ANDRITZ GROUP Capital Market Days 2012, Germany

    ANDRITZ GROUP Capital Market Days 2012, Germany

  40. Slide 40: Disclaimer

    Disclaimer Certain statements contained in this presentation constitute ‛forward-looking statements.’ These statements, which contain the words ‛believe’, ‛intend’, ‛expect’ and words of similar meaning, reflect management’s beliefs and expectations and are subject to risks and uncertainties that ma

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