Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (January 2010)
29 slides from Andritz's investor presentation, January 2010
Slide 1: The ANDRITZ Group Company presentation – January 2010
The ANDRITZ GROUP Company presentation – January 2010
Slide 2: Contents
Company presentation Contents Business profile ANDRITZ’s products in biomass Long-term goals Summary 2 Company presentation – January 2010
Slide 3: A world market leader in most business areas
The ANDRITZ GROUP A world market leader in most business areas ~50% of ~25% of ~10% of ~10% of Group’s ~5% of Group’s Group’s Group’s order intake. Group’s order intake. order intake. order intake. order intake. Electro- Systems for Systems for Systems for mechanical Systems for
Slide 4: Strong growth through organic expansion and acquisitions
Strong growth through organic expansion and acquisitions CAGR 1999-2008: +21% p.a. PULP & PAPER HYDRO 1990 Sprout-Bauer 2006 VA TECH HYDRO 1992 Durametal 2007 Tigép 1994 Kone Wood 2008 GE Hydro business 1998 Kvaerner Hymac 2008 GEHI (JV) 1999 Winberg 2000 Ahlstrom Machinery p. a. th) 1% grow 2000 La
Slide 5: Long-term sales development
Long-term sales development HYDRO and PULP & PAPER as main growth drivers All business areas with CAGR >10% during Share of sales by business area the last ten years. 1999 2008 CAGR HYDRO 5% 33% +51% Strongest growth came from HYDRO business PULP & PAPER 56% 37% +17% area. METALS 20% 16% +17% EN
Slide 6: Global presence
Global presence Strong base in Europe, strong growth in emerging markets Employees 1999-2008 Employees 1999-2008: Employees by region 1999 vs. 2008: more than tripled strongest growth in emerging markets stable base in Europe 1% 1% 7% ~13,700 28% 9% 7% 1999: 8 Others 2008: 178 +170 12% Asia (excl. 1
Slide 7: Balance sheet structure
Balance sheet structure Solid balance sheet with strong net cash position Total assets: 3.2 bn. EUR as of September 30, 2009. Net cash position: 660 MEUR as of September 30, 2009. Equity ratio: 18.7% as of September 30, 2009 Balance sheet as of September 30, 2009 Shareholders’ equity 566 Other
Slide 8: Q1-Q3 2009 and Q3 2009 results at a glance
Q1-Q3 2009 and Q3 2009 results at a glance Q1-Q3 Q1-Q3 Q3 Q3 KEY FIGURES Unit 2009 2008 +/- 2009 2008 +/- 2008 Order intake MEUR 2,554.9 2,900.4 -11.9% 842.2 771.7 +9.1% 3,705.3 Order backlog (as of end of period) MEUR 4,514.5 4,558.1 -1.0% 4,514.5 4,558.1 -1.0% 4,277.4 Sales MEUR 2,330.2 2,538.9 -8
Slide 9: Group restructuring to cope with weak global economy
Group restructuring to cope with weak global economy Major cost savings expected for 2010 Restructuring measures mainly in PULP & PAPER; selective adjustments in the other business areas. Restructuring expenses Q4 2008: Total expected cost savings p.a.*: Thereof cost savings in 2009: ~14 MEUR ~20 ME
Slide 10: Contents
Company presentation Contents Business profile ANDRITZ’s products in biomass Long-term goals Summary 10 Company presentation – January 2010
Slide 11: Biomass – what is it?
Biomass – what is it? Woody/tree crops: Wood chips, HW and SW-residual (birch, poplar, eucalyptus, etc.). Engineered high efficiency wood-crops (hybrid poplar, shrub willow, etc.). Cereals: Corn stover/stalks, cobs and corn fiber. Wheat and barely straws. Sugar crop residual: Sugar cane an
Slide 12: Ways of converting biomass into heat/electricity and fuels
Ways of converting biomass into heat/electricity and fuels Heat/electric Market Power boiler power expectations Pelletising Heating Households warm water Heat/electric Integrated gasification combined cycle power Synthetic Synthetic natural gas Biofuel Gasification gas Bio-Diesel Fischer-Tropsch Bio
Slide 13: Driving forces for increased use of biomass
Driving forces for increased use of biomass Fast growing energy demand worldwide. Biomass is highly competitive among CO2- neutral alternatives. Technology for biomass conversion shows a fast development, this will bring down costs drastically for biomass based products. The need for renewab
Slide 14: Drivers for production of renewable fuels out of biomass
Drivers for production of renewable fuels out of biomass Climate change: Need for reduction of green house gases. US Energy Independence and Security Act of 2007: Increase production of renewable fuels with more than half coming from non-corn starch products Æ this would mean approximately 350 plant
Slide 15: Fuel tax credits in the USA and Canada
Fuel tax credits in the USA and Canada Government backed incentive programs to stimulate investments Canada: “Green transformation program” 0.16 CAD/liter black liquor fired. Funds must be spent for energy efficiency improvements and environmental-related upgrades until 2013. Total benefit for
Slide 16: ANDRITZ's activities in growing biomass market
ANDRITZ’s activities in growing biomass market Comprehensive product range Biomass and recovery boilers. 2nd generation biofuels. Biomass gasification. Pelletizing. 16 Company presentation – January 2010
Slide 17: Pulp mill – biomass conversion into pulp and energy
Pulp mill – biomass conversion into pulp and energy Example: recovery island Recovery island incl. biomass boiler for pulp mill with capacity of 1 mill. t/a: Recovery efficiency of chemicals: 98%. Green electricity produced: 160-200 MW – 1,300-1,700 GWh/a Excess power generation: up to 80-100
Slide 18: Bio-boilers for the pulp industry
Bio-boilers for the pulp industry Growing reference base for green energy production Total order intake of the following orders more than 140 MEUR: Ence Navia, Spain, start-up 2008: steam flow 120 t/h power output 30 MWe Ence Huelva, Spain, start-up 2010: steam flow 195 t/h power output 50 M
Slide 19: ANDRITZ's expertise in 2nd generation fuels
ANDRITZ’s expertise in 2nd generation fuels Patents, pilot plants, and test laboratory Development of pretreatment system ready and several patents filed: Sold six pilot plants based on ANDRITZ patents to leaders in the industry. Own test laboratory in full operation: 1,900 m2 laboratory facility
Slide 20: Development of global wood pellet market
Development of global wood pellet market Strong growth expected 140,0 140.0 120,0 120.0 100,0 100.0 Million tons 18% growth p.a. 80,0 80.0 25% growth after 2010 60,0 60.0 Other projections (2020): 40,0 40.0 Essent 142 mill. t/a Rotterdam Port 130 mill. t/a 2008 20,0 20.0 AEBIOM 150 mill. t/a 9
Slide 21: Complete process capability for wood pellet plants
Complete process capability for wood pellet plants World market leader in wood pellet equipment Global installed base is about 440 wood based pellet production plants. Half of the global production of wood pellets is produced by ANDRITZ machines. Complete process capability – all process steps
Slide 22: Contents
Company presentation Contents Business profile ANDRITZ’s products in biomass Long-term goals Summary 22 Company presentation – January 2010
Slide 23: Sales target
Sales target 4.5 bn. Euro sales goal delayed due to financial crisis Confident to continue growth: Confirmation of goal to increase sales by 10% p. a. on average. CAGR 1999-2008: +21% p. a. (thereof 13% p. a. organic growth). However, 4.5 bn. goal delayed due to financial crisis. 4,500 Range d
Slide 24: EBITA margin target
EBITA margin target 7% over the cycle EBITA margin Q1-Q3 2009: Margin development 5.4% excl. restructuring expenses 3,610 depends on overall 4.4% incl. restructuring expenses economy and on 3,283 M&A success. 2,710 8.0 7.0 6.3 6.4 6.5 6.1 6.1 6.3 ? 5.2 5.3 5.4* 5.1 4.7 4.8 1,744 3.5 1,481 1,319
Slide 25: Target for renewable energy sales
Target for renewable energy sales Long-term more than 50% of Group sales 5000 60 ANDRITZ’s renewable 54% 4,500 4500 >50% energy products: 49% 46% 50 Equipment for hydro-4000 3,610 power stations. 3500 3,283 32% 40 3000 2,710 Recovery boilers/ power boilers for the 2500 2,250 30 21% pulp and pape
Slide 26: Dividend
Dividend Sustainable dividend payout ratio on top of strong sales growth Dividend per share (EUR) 1.10 1.00 0.75 0.50 0.35 0.23 0.25 2002 2003 2004 2005 2006 2007 2008 2009 2010 E Payout ratio ~50.0% 44.1% 44.2% 38.3% 40.3% 34.3% 32.6% 32.5% 2002 2003 2004 2005 2006 2007 2008 2010E Dividends 2002-20
Slide 27: Contents
Company presentation Contents Business profile ANDRITZ’s products in biomass Long-term goals Summary 27 Company presentation – January 2010
Slide 28: Summary
Summary Business development 2009 impacted by economic crisis short- term; however, long-term growth drivers and structural trends should ensure long-term growth of ANDRITZ. Implemented restructuring measures to adjust cost structure to lower business volume and to enhance future competitiveness
Slide 29: 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