Andritz AG · VIE:ANDR
Andritz — Investor Day (2007)
40 slides from Andritz's investor day presentation, 2007
Slide 1: Rolling Mills and Strip Processing Lines – Capital Market Days 2007
Rolling Mills and Strip Processing Lines Capital Market Days 2007
Slide 2: Business Profile
Business Profile The Business Area develops, designs, builds and commissions plants for the metallurgical industry in the field of • cold rolling, surface treatment and processing of metallic strips either out of • steel or stainless steel or nonferrous metals and manufactures core equipment eit
Slide 3: Strategy
Strategy The strategy of the Business Area is … … to have complete full-line capability for all essential processes of the value chain of our customers in its entirety and also to possess an integrated know-how for Mechanical engineering Processes engineering (chemical and thermal) Automation
Slide 4: Strategy (cont’d)
Strategy (cont’d) Develop integrated systems under special consideration of the interdependencies of the different process steps Minimize interface problems related to technology and order execution To protect our know-how To increase Sales volume and absolute gross margin per project To r
Slide 5: Value chain of steel production
Value chain of steel production Upstream Downstream Slabs Cold Strip Final Iron making Steel making Processing Finishing Market HR Coils Rolling Product Baling Close to raw material sources Close to market Very cyclical business depending Rather continuous business on economical parameters d
Slide 6: Process chain from hot rolled strip to value added products
Process chain from hot rolled strip to value added products Pickling Cold Rolling Annealing Coating Finishing Tandem mill Continuous Cutting + Slitting Carbon Electrogalvanizing Steel Continuous Pickling Line Annealing Levelling line Push Pickling Line Reversing mill Hot dip galvanizing Packaging Li
Slide 7: Products
Products ... of the Business Area are derived from the process chain of its customers, starting with the feed stock hot rolled strip until the final handling of the finished product (strip or sheet). o Cold rolling mills o Surface treatment • 2-, 4-, 6-, 12-, 20 high • Continuous and push pull pickl
Slide 8: Business development 1998 - 2002
Business development 1998 - 2002 Sales Sales 1998-2002 1998-2002 Medium-term targets MEUR Sales approx. 200 MEUR 200 150 135.0 140.8 169.1 167.4 177.4 EBITDA approx. 8 % 100 50 0 1998 1999 2000 2001 2002 Order Order Intake Intake EBITDA EBITDA 1998-2002 1998-2002 8% MEUR 6.2% 196.3 200 175.7 6%
Slide 9: Business development 2002 - 2006
Business development 2002 - 2006 Sales Sales 2002-2006 2002-2006 MEUR Medium-term targets 500 450.5 Sales approx. 500 MEUR 400 300 275.9 EBITDA > 8 % 200 177.4 173.1 235.4 100 0 2002 2003 2004 2005 2006 Order Order Intake Intake 2002-2006 2002-2006 MEUR EBITDA EBITDA 2002-2006 2002-2006 500 444.
Slide 10: Development of Order Intake Rolling Mills and Strip Processing Lines
Development of Order Intake Rolling Mills and Strip Processing Lines MEUR Order Intake 600 CAGR 1992-2006: 500 ~ 16% z zz 400 Incoming Orders 300 linear trend 200 100 0 1992 1994 1996 1998 2000 2002 2004 2006 Year 2008 year Capital Market Days 2007 Slide No. 9
Slide 11: Market approach
Market approach Most of the products are placed in the high-priced markets with demanding technical requirements Focus on strongly growing markets like China, India and Russia and devote most resources there without jeopardizing highly developed European market Focus on selected high potential
Slide 12: Market position
Market position 2000 2006 Market share ~ 10 – 12 % ~ 26 % Market size (accessible) ~ 1,200 MEUR ~ 2,000 MEUR Products evenly distributed strong focus on stainless steel Others Estimated market 19% Andritz 26% shares and competition structure 19 Others <3% 15% 2006 SMS 13% FIMI 3% DMS/SH 6% Fagor 4%
Slide 13: Order Intake by Region
Order Intake by Region Where are the customers of the Rolling Mills and Strip Processing Lines Business Area? EU EU Asia Asia 40 40%% 57 57%% 30 30%% 4949% % 68 68%% 47 47% % North North America America Others Others 22% % 11% % 22%% 00% % 00%% 44% % Average Average2001-2004: 2001-2004:230 230MEUR M
Slide 14: Market – Carbon Steel
Market Carbon Steel: Situation in 2003 Situation in 2007 ¾ Average annual growth for crude steel ¾ Since 2002 annual growth rate of approx. 7 %; production 1-2 % in BRIC-states more than 10 % ¾ Steel analysts expected steel production of ¾ Steel production in 2007 will probably reach 1,000 million t
Slide 15: Market (cont‘d) – Carbon Steel
Market (cont‘d) Carbon Steel: Situation in 2003 Situation in 2007 ¾ Few activities in India for investments in steel ¾ Investment activities increased and steel industry capacity of roughly 40-50 mill. tons has been reached. Huge projects are under development but suffer from difficult political sit
Slide 16: Market – Stainless Steel
Market Stainless Steel: Situation in 2003 Situation in 2007 ¾ Average annual growth for stainless steel ¾ Since 2003 annual growth rate for stainless flat production was approx. 5-7 % in recent years production capacity approx. 12 % (2003: ~ 13 mill. tons; 2007: ~ 21 mill. tons) ¾ Capacity for flat
Slide 17: Market – Non-ferrous Metals
Market Non-ferrous Metals: Situation in 2003 Situation in 2007 ¾ Electronic industry is recovering in Asia ¾ Investments in rolling mills for copper, brass and carbon increased, but companies are often selecting simple equipment ¾ Aluminium strip production slowly growing for ¾ Main growth for alumi
Slide 18: Competitors
Competitors Main suppliers of equipment for metallurgical industry are still located in Europe and Japan Local suppliers for equipment in China, Korea and India are growing but sell rather simple equipment. Suppliers for upstream equipment (iron making) feel already the heat of low cost competit
Slide 19: Competitors
Competitors Full liners like SMS-DEMAG, VAI-Siemens, Danieli, which cover the whole process chain (upstream and downstream), have only limited advantage. Smaller suppliers like DMS, CMI and others often have very competitive prices compared with the large suppliers. Some competitors like SMS-D
Slide 20: Important customers
Important customers Europe Asia North America Russia Australia Thyssen Krupp Steel Baosteel-Group US Steel Magnetogorsk BHP Salzgitter Wisco Mittal Steel Novolipezk Arcelor Posco Nucor Severstal Corus Tisco (Tajyuan) Dofasco … Voest Alpine Tisco (India) Hylsamex Diehl Maanshan Worthington Kabelmetal
Slide 21: References for Stainless Steel Lines
References for Stainless Steel Lines ThyssenKrupp Sandvik Outokumpu Lukens Steel Nisshin Steel Ergste Avesta Polarit Böhler-Uddeholm North Nippon Steel Theis American Serp I Molot Stainless Avesta Sumitomo Salem Nippon Ugine TISCO Mining Sammi Steel Acerinox JISCO Taiyuan POSCO J&L SKS BAOXIN BHP Me
Slide 22: Annealing and Pickling Line for ThyssenKrupp Stainless
Annealing and Pickling Line for ThyssenKrupp Stainless Technical Data: Line capacity: 40,000 kg/h Line speed: max. 100 m/min. Strip width: 600-1,380 mm Strip thickness: 0.2 – 2.0 mm Strip accumulator Annealing furnace HNO3 pickling section Capital Market Days 2007 Slide No. 21
Slide 23: Hot Dip Galvanizing Line for ThyssenKrupp Stahl
Hot Dip Galvanizing Line for ThyssenKrupp Stahl ThyssenKrupp Stahl, Dortmund/Germany Capital Market Days 2007 Slide No. 22
Slide 24: Hot-Dip Galvanizing Line for ThyssenKrupp Stahl
Hot-Dip Galvanizing Line for ThyssenKrupp Stahl Technical Data: Line capacity: 450,000 t/year Line speed: 180 m/min. Strip width: 750 – 1,650 mm Strip thickness: 0.3 – 1.5 mm Strip accumulator Coater and exit vertical strip accumulator Capital Market Days 2007 Slide No. 23
Slide 25: Shear Line for side trimming, slitting, cut to length and levelling for TKN
Shear Line for side trimming, slitting, cut to length and levelling for TKN KruppThyssen Nirosta, Krefeld/Germany Capital Market Days 2007 Slide No. 24
Slide 26: Push Pull Pickling Line for ThyssenKrupp Stahl
Push Pull Pickling Line for ThyssenKrupp Stahl High-capacity push pickling line Capital Market Days 2007 Slide No. 25
Slide 27: Blanking Line for Volkswagen
Blanking Line for Volkswagen Blanking line for rectangular and trapezoidal blanks Capital Market Days 2007 Slide No. 26
Slide 28: Leveller and Cutting Shear for CORUS, Germany
Leveller and Cutting Shear for CORUS, Germany Capital Market Days 2007 Slide No. 27
Slide 29: Bright Annealing Line for Shanghai Krupp Stainless
Bright Annealing Line for Shanghai Krupp Stainless Vertical Muffle furnace Capital Market Days 2007 Slide No. 28
Slide 30: Electrolytic Galvanizing Line for Baosteel
Electrolytic Galvanizing Line for Baosteel Detail of an electrolytic galvanizing cell according to the patented Gravitel process Capital Market Days 2007 Slide No. 29
Slide 31: 20-high Cold Rolling Mill for Arcelor (ALZ)
20-high Cold Rolling Mill for Arcelor (ALZ) Capital Market Days 2007 Slide No. 30
Slide 32: 20-high Rolling Mill for ThyssenKrupp, Krefeld/Germany
20-high Rolling Mill for ThyssenKrupp, Krefeld/Germany Capital Market Days 2007 Slide No. 31
Slide 33: Grinding Machine
Grinding Machine Capital Market Days 2007 Slide No. 32
Slide 34: Punching and Metal Forming Presses
Punching and Metal Forming Presses Capital Market Days 2007 Slide No. 33
Slide 35: Review on Capital Market Days 2003
Review on Capital Market Days 2003 Where do we go in the next 3 to 5 years? Assumption at CMD 2003 Status 2007 / 2008 ¾ No clear picture beyond 3 years time horizon ¾ Super cycle for steel industry already lasts almost 5 years. Another 2 to 3 years are expected mainly driven by investment in Infrast
Slide 36: Review on Capital Market Days 2003
Review on Capital Market Days 2003 Where do we go in the next 3 to 5 years? Assumption at CMD 2003 Status 2007 / 2008 ¾ Enlargement of know-how for cold rolling ¾ Development of high speed 6-high mill for through own development and acquisition carbon steel. Two mills supplied to Korea which are wor
Slide 37: Review on Capital Market Days 2003
Review on Capital Market Days 2003 Where do we go in the next 3 to 5 years? Assumption at CMD 2003 Status 2007 / 2008 ¾ Scope of supply for automation and ¾ Today many customers give Andritz full electrification will further grow when our responsibility for automation and electrification. references
Slide 38: CMD 2007: Where do we go in the next 3 to 5 years?
CMD 2007: Where do we go in the next 3 to 5 years? Our expectations: Based on the current project list, we expect a solid development of Order Intake for the next few years, which means Sales will be secured at least until 2010 GDP growth in China, India and other Asian countries (like Vietnam)
Slide 39: CMD 2007: Where do we go in the next 3 to 5 years?
CMD 2007: Where do we go in the next 3 to 5 years? Our expectations: Investment boom for metallurgical equipment in India if government is able to better control conditions in local areas Engineering activities of the Business Area in India and China will further grow. Eastern Europe or even Rus
Slide 40: CMD 2007: Where do we go in the next 3 to 5 years?
CMD 2007: Where do we go in the next 3 to 5 years? Our expectations: Market will increasingly require Andritz automation and electrification. Growth in resources difficult Æ potential to get needed resources in Asia US market seems to recover Æ the Business Area has to re-establish local resourc