Andritz AG · VIE:ANDR

Andritz — Investor Day (2013)

33 slides from Andritz's investor day presentation, 2013

  1. Slide 1: ANDRITZ GROUP Capital Market Day 2013, Germany

    ANDRITZ GROUP Capital Market Day 2013, Germany

  2. Slide 2: Contents

    Contents Major developments since last Capital Market Day Update on market and outlook for the business areas Capital Market Days: goals and summary 2 Capital Market Day 2013, Germany – ANDRITZ GROUP – Wolfgang Leitner

  3. Slide 3: Acquisition of ANDRITZ Gouda (1)

    Acquisition of ANDRITZ Gouda (1) Complementing drying business of SEPARATION Products and services: Drying equipment, mainly drum dryers and paddle dryers, for food industry (e.g. baby food), chemical industry, and municipalities Strategic fit: Complementation and extension of ANDRITZ SEPARATIONʼs d

  4. Slide 4: ANDRITZ Gouda (2): Sales by region and important customers

    ANDRITZ Gouda (2) Sales by region and important customers Important customers:  Danone  Tate & Lyle  Heinz  Unilever  Petrobras  BASF  PWT/Ambarli  Cargill  Emsland  Veolia  Nestlé  Roquette Frères  National Starch 8 Others 9 China 12 54 Europe Asia (without Sales by China) region 2012

  5. Slide 5: Acquisition of majority stake in Shende Machinery

    Acquisition of majority stake in Shende Machinery Strengthening of pelleting business, especially in Asia Products and services: Systems for mid-size animal/aquatic feed and biomass pelleting Strategic fit: Strengthening of ANDRITZ SEPARATIONʼs portfolio and enhancement of position in China and othe

  6. Slide 6: Organic and external growth ANDRITZ GROUP since 2005

    Organic and external growth ANDRITZ GROUP since 2005 Sales (MEUR) ANDRITZ GROUP sales 2012: 5,177 MEUR Organic growth of acquisitions: 759 Acquisitions: 1,525 ANDRITZ GROUP Organic growth of sales 2005: Group companies 1,744 MEUR 2005: 1,149 ANDRITZ GROUP 2005 2012 6 Capital Market Day 2013, Germany

  7. Slide 7: Where has the growth come from?

    Where has the growth come from? Growth trends by business area HYDRO: Organic growth plus market share gains in selective markets (Europe, North America) PULP & PAPER: Growth in line with market; 25% weight of large-scale contracts in 2011, now <10% METALS: Since 2009, the “old” ANDRITZ METALS segme

  8. Slide 8: Contents

    Contents Major developments since last Capital Market Day Update on market and outlook for the business areas Capital Market Days: goals and summary 8 Capital Market Day 2013, Germany – ANDRITZ GROUP – Wolfgang Leitner

  9. Slide 9: HYDRO: Global market volume substantially below peak levels

    HYDRO Global market volume substantially below peak levels MARKET Large-scale projects:  Solid demand for rehabilitation and modernization to continue due to age of installed base  Some greenfield hydropower projects in emerging markets (Africa, South America) Small-scale projects: Good activity t

  10. Slide 10: HYDRO: Cumulative installed hydropower capacity (GW)

    HYDRO Cumulative installed hydropower capacity (GW)  Strong growth from 2006 onwards  2013-2020: expected average annual growth of 3.2%  CAGR 2003-2005: 2.6% 1,362 1,320  CAGR 2006-2012: 3.7% 1,280 1,237  CAGR 2003-2012: 3.4% 1,200 1,167  CAGR 2013E-2020E: 3.2% 1,128 1,093  CAGR 2003-2020E: 3

  11. Slide 11: HYDRO: Favorable long-term potential for rehabilitation/modernization

    HYDRO Favorable long-term potential for rehabilitation/modernization Units older than 30 years (in % of installed capacity in operation) 55% of installed capacity older than 30 years! % Source: ANDRITZ; Platts – UDI 11 Capital Market Day 2013, Germany – ANDRITZ GROUP – Wolfgang Leitner

  12. Slide 12: HYDRO: 58 years to modernize the fleet

    HYDRO: based on 55% share of capacity being older than 30 years, it would take 58 years to modernize this fleet Installed hydropower capacity 2012 (1,058 GW) by region in % Todayʼs annual 10 GW rehab rate is not sufficient to stop aging of existing fleet! Source: GlobalData, Hydropower&Dams World At

  13. Slide 13: PULP & PAPER: Reasonable project activity, but fierce competition

    PULP & PAPER Reasonable project activity, but fierce competition MARKET Pulp:  Investments in greenfield pulp mills to continue, mid-term some order awards in South America and Asia  Modernization projects to increase efficiency and profitability of existing mills  Green energy investments  Regi

  14. Slide 14: World consumption of papermaking fiber through 2025

    World consumption of papermaking fiber through 2025 Expected growth of 1.6% per year  World consumption of papermaking fiber raw materials has grown from 289 million t in 1995 to 406 million t in 2011 ( annual average growth rate: 2.1%)  The consumption is forecast to grow by an annual average of

  15. Slide 15: Net capacity worldwide has only marginally increased

    Despite new capacities built, net capacity worldwide has only marginally increased Development of net global chemical pulp production capacity (market pulp + integrated pulp) ktons/a Chemical pulp production capacity: -270 1,282 914 2,532 978 1,368 3,445 236 67 1,559 1,750 2,270 4,295 +/- ktons 132,

  16. Slide 16: PULP & PAPER: Planned major projects > 1 million tons

    PULP & PAPER Planned major projects > 1 million tons Capacity/ Planned Country Owner Project year* start-up Brazil Klabin Ortigueira 1.1 2015 Brazil Eldorado Três Lagoas 4.0 2017 et seq Brazil Fibria Três Lagoas 1.5 2017 et seq Brazil Fibria Aracruz 1.5 2017 et seq Brazil Veracel Eunápolis 1.5 2017

  17. Slide 17: Each project enhances our reputation (1)

    Each project enhances our reputation (1) ANDRITZ scope of supply Aracruz fiberline C, Brazil Veracel Celulose, Brazil 700,000 t/a; start-up 2002 900,000 t/a; start-up 2005 Wood- Bleach Pulp Wood- Bleach Pulp Cooking Washers Cooking Washers yard plant dryer yard plant dryer Baling Recov. WL Baling Re

  18. Slide 18: Each project enhances our reputation (2)

    Each project enhances our reputation (2) ANDRITZ scope of supply Zhanjiang Chenming Paper Group, China 700,000 t/a; start-up 2011 Wood- Bleach Pulp Cooking Washers yard plant dryer Baling Recov. WL Evaps line boiler plant Eldorado Celulose e Papel, Brazil 1,600,000 t/a; start-up 2012 Wood- Oxygen Bl

  19. Slide 19: Update on pulp mill project in Uruguay

    Update on pulp mill project in Uruguay  ~ 95% of project finished  Customer published in September that start-up of the mill is further delayed beyond Q3 2013  Additional provisions likely if difficult labor situation on site continues  When this contract was signed two years ago, it had all the

  20. Slide 20: ANDRITZ and EPC/large-scale contracts

    ANDRITZ and EPC/large-scale contracts  EPC contracts come inherently with generally manageable, but ultimately not fully avoidable risks  ANDRITZ will limit EPC contracts to  divisions where EPC scope offers superior value to customers  customers that are willing to pay fair price for such super

  21. Slide 21: METALS: Good activity in furnaces, low in carbon and stainless

    METALS Good activity in furnaces, low in carbon and stainless MARKET Metalforming:  Automotive demand to slow down from record levels of past years; regionally different development: Europe ex Germany weak, Asia and South America good  Stable demand from other industries Stainless steel: Investmen

  22. Slide 22: METALS: Entire process chain from hot rolled strip to finished parts

    METALS Entire process chain from hot rolled strip to finished parts rolling pickling heat treatment coating blanking forming part handling Core competence ANDRITZ METALS: Core competence Schuler: processing lines for the production of press shop equipment steel and aluminum strips 22 Capital Market

  23. Slide 23: Consumption of flat strip mill products

    Consumption of flat strip mill products Car industry with the largest share Share of consumption of flat strip mill products Total flat strip mill products by industry in Europe 2008-2012 (in %) in million metric tons 90 84 82 2010 2011 2012 Source: Eurofer 23 Capital Market Day 2013, Germany – ANDR

  24. Slide 24: SEPARATION: Slow market to continue

    SEPARATION Slow market to continue MARKET Municipalities: Investment activity at reasonable levels Industries:  Reasonable demand in food processing  Low project activity in mining, minerals, and chemical industries Animal feed: Continuing at solid level Biomass pelleting: Good demand to continue

  25. Slide 25: Contents

    Contents Major developments since last Capital Market Day Update on market and outlook for the business areas Capital Market Days: goals and summary Foto: BMW AG/Martin Klindtworth 25 Capital Market Day 2013, Germany – ANDRITZ GROUP – Wolfgang Leitner

  26. Slide 26: Review of Capital Market Days' goals

    Review of Capital Market Daysʼ goals: sales and dividend goals achieved, pending margin goal reached in 2010-2012 Goal achieved Goal not achieved Goal pending Share of renewable 4.0/4.5 bn. Sales: 3.0 bn. EUR 5.0 bn. EUR energy sales EUR > 50% 7.0% over the cycle: 7.0% 7.0% EBITA  Goal achieved in

  27. Slide 27: Earnings influencing factors 2013 and 2014 (1)

    Earnings influencing factors 2013 and 2014 and margin improvement potential (1) Expected market and order intake development:  Stable market development to continue in all four business areas, however no sign of major recovery for 2014  Excluding Schuler, ANDRITZ’s order intake 2013 will be slight

  28. Slide 28: Earnings influencing factors 2013 and 2014 (2)

    Earnings influencing factors 2013 and 2014 and margin improvement potential (2) Margin development: Short-term:  Group margin impacted by one-off cost Margin development overruns in PULP & PAPER and Short-term Long-term SEPARATION; HYDRO stable at solid ANDRITZ GROUP - + level; METALS supported by

  29. Slide 29: Target to continue long-term profitable growth

    Target to continue long-term profitable growth Goal: maintain 7% and improve to 8% with top line sales growth Goal: 7%, improve to 8% with top line sales growth 2005-2009: avg. 6.0% % 2000-2004: avg. 5.3% MEUR * * Including restructuring expenses ** Including Schuler as of March 1, 2013; for the ref

  30. Slide 30: Confirmation of dividend payout ratio goal

    Confirmation of dividend payout ratio goal Consistent dividend policy Dividend goals:  Keep payout ratio at least at ~50%  Mid-term increase to ~60% Dividend per share (EUR) Payout ratio (%) 30 Capital Market Day 2013, Germany – ANDRITZ GROUP – Wolfgang Leitner

  31. Slide 31: Summary

    Summary  Long-term structural trends within all four business areas should support long-term organic growth of ANDRITZ; however, currently subdued project activity in all business areas due to general economic environment being without clear direction  ANDRITZ to adjust organization to market envi

  32. Slide 32: ANDRITZ GROUP Capital Market Day 2013, Germany

    ANDRITZ GROUP Capital Market Day 2013, Germany

  33. Slide 33: 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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