Andritz Ag · VIE:ANDR

Andritz — Investor Day (2010)

27 slides from Andritz's investor day presentation, 2010

  1. Slide 1: The ANDRITZ GROUP Capital Market Day 2010, Austria

    The ANDRITZ GROUP Capital Market Day 2010, Austria

  2. Slide 2: Contents

    Contents  Long-term development of the ANDRITZ GROUP  Coping with the economic crisis  Capital Market Days – goals  Summary 2 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Day 2010, Austria

  3. Slide 3: Long-term order intake development

    Long-term order intake development HYDRO as main growth driver CAGR order intake ANDRITZ GROUP Share of order intake 2000-2009: +13% by business area  HYDRO, ENVIRONMENT & PROCESS, 2000 2009 CAGR and METALS with CAGR ≥10% during HYDRO 2% 51% +59% the last ten years. PULP & PAPER 68% 27% +3% METALS

  4. Slide 4: Order intake by region (1)

    Order intake by region (1) Under-proportionate growth in North America and Europe North America  GROUP: CAGR +3%  Top growth drivers: > HYDRO > ENVIRONMENT & PROCESS 768 Europe 467 472 413  GROUP: CAGR +10% 355 364 305 285  Top growth drivers: 273 229 > HYDRO > ENVIRONMENT & PROCESS 1,776 2000 2

  5. Slide 5: Order intake by region (2)

    Order intake by region (2) Over-proportionate growth in emerging markets 557 China  GROUP: CAGR +21% 466 472  Top growth drivers: 359 334 346 > PULP & PAPER 304 > HYDRO 115 136 100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 South America  GROUP: CAGR +18%  Top growth drivers: > HYDRO Asia

  6. Slide 6: Global presence

    Global presence Strong base in Europe, strong growth in emerging markets Employees 2000-2009 Employees 2000-2009: Employees by region 2000 vs. 2009: more than tripled strongest growth in emerging markets strong base in Europe 1% 1% 1% ~13,000 1% Emerging 9% markets 27% 9% 2000: 9 Others 2009: 49 +40

  7. Slide 7: Employees by region (1)

    Employees by region (1) Regional shift of employees in line with order intake shift CAGR employees ANDRITZ GROUP 2000-2009: +13% Europe  GROUP: CAGR +11%  Top growth drivers: > HYDRO > ENVIROMENT & PROCESS 8,807 8,242 North America 7,679 6,990  GROUP: CAGR +7%  Top growth drivers: > HYDRO 3,999

  8. Slide 8: Employees by region (2)

    Employees by region (2) More than 25% of Group’s employees in South America + Asia China 1,183  GROUP: CAGR +47% 1,052 1,128  Top growth drivers: > HYDRO > PULP & PAPER 683 362 240 South America 140  GROUP: CAGR +88% 36 44 58 946  Top growth drivers: 838 871 > PULP & PAPER 2000 2001 2002 2003 20

  9. Slide 9: Sales and profitability

    Sales and profitability Increase of average profitability during the last ten years CAGR Sales 2000-2009: +15% 4.000 4,000 7,0 7.0 Average EBITA margin: 6.4 3,610 6.3 3.500 3,500  2000-2004: 5.3% 3,283 6.5 6.0* 6.3 6.1 6,0 6.0  2005-2009: 6.0% 6.1 3,198 3.000 3,000 2,710 5.2 5.3 5,0 5.0 5.1 5.1 2.

  10. Slide 10: Solid balance sheet structure as of June 30, 2010

    Solid balance sheet structure as of June 30, 2010 Substantial increase of cash position Total assets and equity: Comparison of key balance sheet ratios 2009:  Total assets increased to 3,750.1 MEUR Equity/ Goodwill/ Tangible equity/ (December 31, 2009: 3,309.3 MEUR). total assets equity total asset

  11. Slide 11: Strong net cash position used for acquisitions

    Strong net cash position used for acquisitions, . . . Stable development despite acquisitions  Ahlström  Ahlström  Guinard  Fiedler  Kaiser  Lenser  VA TECH  Tigép  GE Hydro  Rollteck  DMT/Biax 50% rem. 50% rem. 50% HYDRO  IDEAS  AFSR  Universal  Sindus  GEHI  Rieter  Fläkt  Kuest

  12. Slide 12: Sustainable dividend payout

    . . . dividend payments, as well as . . . Sustainable dividend payout ratio on top of strong sales growth CMD goal 2008 ‘Increase dividend payout ratio to ~50% by 2010’ reached by 2009.  New goal:  Keep payout ratio by at least 50%  Mid-term increase to ~60% Dividend per share (EUR) 1.10 1.00 1.0

  13. Slide 13: Capex

    . . . capex Stable development with ~2.0% of sales p. a. on average 2.5 2.2 2.2 2.1 2.0 1.9 80 2.0 1.8 1.9 1.7 1.7 1.7 70 71 70 1.5 1.5 1.4 60 57 50 46 1.0 40 29 30 0.5 27 24 23 21 21 22 20 0.0 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 H1 2010 Capex (MEUR) Capex share of sales (%) Avera

  14. Slide 14: Capex 2009

    Capex 2009 Continued despite the crisis with clear focus Capex 2009 by region (%) Capex 2009 by area (%) Capex focus:  Modernization of manufacturing capacities.  Product development in promising segments (e.g. biomass, bioethanol, gasification; carton; separation mining and food; galvanizing and

  15. Slide 15: Net cash position expected to remain high

    Net cash position expected to remain high Strong free cash flow, good order intake, and projects in early execution phases as main drivers  Strong increase of net cash Free cash flow* 2006-2009 (MEUR) position during the last few years, driven by: 286 > strong free cash flow generation, > receipt o

  16. Slide 16: Contents

    Contents  Long-term development of the ANDRITZ GROUP  Coping with the economic crisis  Capital Market Days – goals  Summary 16 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Day 2010, Austria

  17. Slide 17: Order intake and sales Q1 2008-Q2 2010

    Order intake and sales Q1 2008-Q2 2010 Solid development during crisis 1,395 1,196 1,071 981 933 908 889 842 794 772 805 731 899 867 830 790 784 756 751 732 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Order intake (MEUR) Sales (MEUR) 17 ANDRITZ GROUP – Wolfgang Le

  18. Slide 18: EBITA and EBITA margin Q1 2008-Q2 2010

    EBITA and EBITA margin Q1 2008-Q2 2010 Solid performance during crisis 80 7.9* 8.0 7.2 6.6 71 70 6.5 6.5 7.0 6.1 6.0 62 6.0 7.0 60 59 58 5.5 6.0 54 6.0 50 46 44 46 44 5.0 5.0 4.7* 40 4.0 30 3.0 1.6 20 2.0 13 10 1.0 0 0.0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

  19. Slide 19: Restructuring

    Restructuring Further enhancement of cost structure 2008 and 2009: Employees ANDRITZ GROUP  Restructuring measures in Q4 2008 and Q2 2009 mainly related to personnel reduction and 13,707 certain asset writedowns. -5%  Reduction of workforce especially 13,049 Acquisitions/ in PULP & PAPER (Europe).

  20. Slide 20: Contents

    Contents  Long-term development of the ANDRITZ GROUP  Coping with the economic crisis  Capital Market Days – goals  Summary 20 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Day 2010, Austria

  21. Slide 21: Review on targets of past Capital Market Days

    Review on targets of past Capital Market Days Achievement of some targets delayed due to crisis CMD 2004: Become a 2 bn. EUR company by 2007 – target reached in 2006.  CMD 2005:  Reach EBITA margin of 7% by 2008.  Increase dividend payout ratio to 40% over the next few years – target reached in 2

  22. Slide 22: Sales target

    Sales target 4.5 bn. Euro sales goal targeted for 2013/2014  Confident to continue growth: Confirmation of goal to increase sales by 10% p. a. on average.  CAGR 2000-2009: +15% p. a. (thereof 7% p. a. organic growth).  4.5 bn. goal, delayed due to crisis, should be reached 2013/2014. Sales (MEUR)

  23. Slide 23: EBITA margin target

    EBITA margin target 7% over the cycle 2010 ff.: 7% over the cycle 2005-2009: average 6.0% 2000-2004: average 5.3% 8.0 4,500 4,500 4,500 7.0 7.0 6.5 6.3 6.4 6.3 4,000 4,000 6.1 6.1 6.0 3,610 5.2 5.3 3,283 5.1 * 3,500 3,500 5.1 5.0 4.7 2,710 3,000 3,000 3,198 2,500 2,500 4.0 1,744 2,000 2,000 3.0 3.0

  24. Slide 24: Earnings per share

    Earnings per share Assumptions for 2014E EPS calculation: 4.5 bn. EUR sales; 7% EBITA margin; 30% tax rate. EPS (EUR) 4.5 4.15 % 4 : +17.2 4E -201 3.5 G R 2000 CA % 3 : +17.3 2.61 2.73 9 000 -200 2.31 2.5 R 2 CAG 1.89 2 1.53 1.5 1.03 1 0.71 0.51 0.57 0.45 0.5 0 2000 2001 2002 2003 2004 2005 2006 200

  25. Slide 25: Contents

    Contents  Long-term development of the ANDRITZ GROUP  Coping with the economic crisis  Capital Market Days – goals  Summary 25 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Day 2010, Austria

  26. Slide 26: Summary

    Summary  Well balanced geographical and business related exposure with stable base in Europe and strong growth in emerging markets.  Strong cash position used for: > further complementary acquisitions; > modernization capex; > continuing dividend payments.  Solid development during crisis: restru

  27. Slide 27: 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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