Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (March 2016)
24 slides from Andritz's investor presentation, March 2016
Slide 1: ANDRITZ GROUP Company presentation March 2016
ANDRITZ GROUP Company presentation March 2016
Slide 2: Contents
Contents 1 ANDRITZ GROUP overview 2 Results 2015 3 Long-term goals and outlook
Slide 3: The ANDRITZ GROUP Overview
The ANDRITZ GROUP Overview ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metal-working and steel industries, and solid/liquid separation in the municipal and industrial sectors Headquarters: Graz, Austria Global pr
Slide 4: Company profile: Worldwide leading position in four business areas
Company profile Worldwide leading position in four business areas 30%* 35%* 25%* 10%* Product offerings: Product offerings: Product offerings: Product offerings: electromechanical equipment for presses for equipment for equipment for hydro- production of all types of metalforming (Schuler); solid/li
Slide 5: Strengthening of market position
Strengthening of market position Growth through organic expansion and acquisitions Acquisitions by business area since 1990 Compound Annual Growth Rate (CAGR) of Group sales 2005-2015: +14% p. a. (thereof approximately half organic growth) HYDRO 2011 Tristar Industries 2006 VA TECH HYDRO 2011 Asseli
Slide 6: Results 2015
Contents 1 ANDRITZ GROUP overview 2 Results 2015 3 Long-term goals and outlook
Slide 7: Strong increase in Group sales
Strong increase in Group sales, Mainly driven by PULP & PAPER and METALS SALES 2015 vs. 2014 (MEUR) SALES by business area (MEUR) 2015 2014 +/- +9% HYDRO 1,835 1,752 +5% PULP & PAPER 2,196 1,969 +12% 6,377 METALS 1,718 1,551 +11% 5,859 SEPARATION 628 587 +7% SALES by region (%) 2015 2014 Well-balanc
Slide 8: Group order intake almost reached record level of 2014
Group order intake almost reached record level of 2014 PULP & PAPER offsets decline in METALS ORDER INTAKE 2015 vs. 2014 (MEUR) ORDER INTAKE by business area (MEUR) 2015 2014 +/- -1% HYDRO 1,719 1,817 -5% PULP & PAPER 2,264 1,996 +13% 6,101 6,018 METALS 1,439 1,693 -15% SEPARATION 597 596 +/-0% ORDE
Slide 9: Group order backlog at good level
Group order backlog at good level Decline in METALS due to Schuler Order backlog (as of end of period in MEUR) -3% 2010: 2011: 2012: 2013: 2014: 2015: 5,291 6,683 6,615 7,389 7,511 7,324 Order backlog by business area (as of end of period in MEUR) HYDRO and PULP & PAPER account for 77% of total back
Slide 10: Earnings and profitability up despite Schuler restructuring
Earnings and profitability up despite extraordinary expenditure for Schuler restructuring EBITA 2015 vs. 2014 (MEUR) 2015: EBITA, at 429.0 MEUR, up by 13% versus 2014 (379.5 MEUR); EBITA margin at 6.7% (2014: 6.5%) +13% 429.0 Restructuring expenses of ~78 MEUR (optimization of value chain at Sch
Slide 11: Earnings and profitability by business area
Earnings and profitability by business area EBITA (MEUR) EBITA (MEUR) EBITA (MEUR) EBITA (MEUR) and EBITA margin (%) and EBITA margin (%) and EBITA margin (%) and EBITA margin (%) HYDRO PULP & PAPER METALS SEPARATION 145 145 22 22 149* 8.3% 191 8.6*% 3.7% 110 8.7% 7.9% 7.1% 3.6% 103 71 4.1% 5.2% 201
Slide 12: Proposed dividend of 1.35 euro/share
Proposed dividend of 1.35 euro/share Payout ratio, at ~52%, in line with dividend policy DIVIDEND per share (EUR) 1.35* 1.20 1.10 1.00 0.85 0.50 0.55 0.50 0.50 0.38 0.18 0.25 0.11 0.13 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015 * Proposal to AGM Confirmation of divide
Slide 13: HYDRO (1) Continued moderate project and investment activity
HYDRO (1) Continued moderate project and investment activity Modernizations/rehabilitations New hydropower plants Many projects postponed until further Some new planned projects notice due to unchanged low expected to be awarded only electricity and energy prices in the medium term Small-scale Compe
Slide 14: HYDRO (2) Satisfactory business development
HYDRO (2) Satisfactory business development HYDRO Unit 2015 2014 +/- Satisfactory order intake in view of unchanged difficult Order intake MEUR 1,718.7 1,816.7 -5.4% market environment Order backlog (as of end of period) MEUR 3,640.9 3,708.6 -1.8% Sales in 2015 favorably up Sales MEUR 1,834.8 1,752.
Slide 15: PULP & PAPER (1) Good project and investment activity
PULP & PAPER (1) Good project and investment activity Modernization and greenfield Good project and investment activity Biomass/power boilers both for modernization/refurbishment Unchanged subdued projects and greenfield pulp mills investment activity, especially for power boilers Competition Unchan
Slide 16: PULP & PAPER (2) Very favorable business development
PULP & PAPER (2) Very favorable business development PULP & PAPER Unit 2015 2014 +/- Order intake significantly up due to receipt of some larger orders (SCA Order intake MEUR 2,263.9 1,995.7 +13.4% Östrand, Metsä Fibre, Fibria) Order backlog (as of end of period) MEUR 1,998.6 1,875.4 +6.6% Favorable
Slide 17: METALS (1) Continued low project and investment activity
METALS (1): continued low project and investment activity, especially in metalforming for the automotive industry Metalforming Aluminum Especially in China, many projects postponed due Project and investment to decline of automotive market; satisfactory activity below the investment activity in all
Slide 18: METALS (2) Earnings and margin down due to Schuler restructuring
METALS (2): earnings and margin down due to restructuring expenditure at Schuler METALS Unit 2015 2014 +/- Order intake significantly below the high level in 2014, mainly due to Order intake MEUR 1,438.6 1,692.8 -15.0% decline of automotive market (Schuler) Order backlog (as of end of period) MEUR 1
Slide 19: SEPARATION (1) Mixed market development
SEPARATION (1) Mixed market development Environment, food, and chemicals Feed and Satisfactory investment activity biomass pelleting Unchanged good project activity Mining and minerals Competition Low project activity Very fragmented market with global and regional competitors ▲ ANDRITZ SEPARATION l
Slide 20: SEPARATION (2) Still unsatisfactory financial development
SEPARATION (2) Still unsatisfactory financial development SEPARATION Unit 2015 2014 +/- Order intake in 2015 practically unchanged Order intake MEUR 596.5 595.8 +0.1% compared to last yearʼs reference period Order backlog (as of end of period) MEUR 352.2 360.5 -2.3% Sales favorably up Sales MEUR 628
Slide 21: Long-term goals and outlook
Contents 1 ANDRITZ GROUP overview 2 Results 2015 3 Long-term goals and outlook
Slide 22: Long-term EBITA margin goal per business area
Long-term EBITA margin goal per business area HYDRO PULP & PAPER Long-term goal: Long-term goal: 8.5-9.0% 8.7 7.0-8.0% 8.3 8.3 8.1 8.3 7.9 6.4 5.9 5.2 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 -1.8 METALS SEPARATION Long-term goal: Long-term goal: 7.1 7.0-8.0% 8.0-9.0% 6.2 7.8 5.2 6.9 4.1* 4
Slide 23: Target to continue long-term profitable growth
Target to continue long-term profitable growth Goal: further improve profitability with top-line sales growth Medium-term: Increase EBITA margin to 7-8% with sales Average growth 2005-2009: % Average 6.0% 8.0 2000-2004: 6,377 MEUR 5.3% 7.2 7.2 5,859 6,000 6.9 7.0 5,711* 6.7 6.4 6.5 6.5 6.3 6.1 6.1 5
Slide 24: Outlook for 2016
Outlook for 2016 Satisfactory business development expected Project activity for Good project activity for Low project and Low project activity in modernizations and new modernizations and investment activity both mining to remain; hydropower stations to capacity increases to in metalforming for sol