Andritz AG · VIE:ANDR

Andritz — Investor Presentation (July 2009)

20 slides from Andritz's investor presentation, July 2009

  1. Slide 1: The ANDRITZ GROUP Company presentation July 2009

    The ANDRITZ GROUP Company presentation July 2009

  2. Slide 2: Contents

    Company presentation Contents ƒ Business profile and results Q1 2009 ƒ Market expectations and key aspects by business area ƒ Outlook 2009 and goals 2010/2011 2 Company presentation – July 2009

  3. Slide 3: A world market leader in most business areas

    The ANDRITZ GROUP A world market leader in most business areas ƒ ~45% of Group’s ƒ ~25% of Group’s order ƒ ~15% of Group’s order ƒ ~10% of Group’s order intake. ƒ ~5% of Group’s order intake. intake. intake. order intake. ƒ Systems for mechanical and ƒ Electro-mechanical ƒ Systems for production of

  4. Slide 4: Strong growth through organic expansion and acquisitions

    Strong growth through organic expansion and acquisitions CAGR 1998-2008: +17% p.a. HYDRO METALS 2006 VA TECH HYDRO 1997 Sundwig 2007 Tigép 1998 Thermtec 2008 GE Hydro business 2000 Kohler 2008 GEHI (JV) 2002 SELAS SAS Furnace Div. , PULP & PAPER 2004 Kaiser p . a. wth 17%ic gro 2005 Lynson + 3,610 1

  5. Slide 5: Q1 2009: Order intake

    Q1 2009: Order intake Below high level of Q1 2008, but . . . FEED & BIOFUEL -19% vs. Q1 2008 Order intake Q1 2008: ~32% of total order intake 2008 1,196 -17.9 ENVIRONMENT & (3,705 MEUR) % 981 PROCESS -15% vs. Q1 2008 32% METALS -49% vs. Q1 2008 Q1 2008 Q2-Q4 2008 Q1 2008 Q1 2009 PULP & PAPER Group o

  6. Slide 6: Order intake up against Q4 2008

    Order intake . . . up against Q4 2008 Order intake of the ANDRITZ GROUP (MEUR) 1,196 1,098 -18% 981 933 771 805 +22% Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Order intake (MEUR) Q4 2008 vs. Q1 2009 Q4 2008 Q1 2009 +/- ANDRITZ GROUP 805 981 +22% HYDRO 531 574 +8% PULP & PAPER 78 164 +110% META

  7. Slide 7: Q1 2009: Order backlog

    Q1 2009: Order backlog Increase in workload due to HYDRO FEED & BIOFUEL % +3.3 +12% vs. Q1 2008 4,464 4,277 4,321 3,843 ENVIRONMENT & PROCESS 3,397 -11% vs. Q1 2008 METALS 1.696 1,439 -9% vs. Q1 2008 904 1,054 PULP & PAPER -41% vs. Q1 2008 2002 2003 2004 2005 2006 2007 2008 Q1 Q1 2008 2009 Group ord

  8. Slide 8: Q1 2009 results at a glance

    Q1 2009 results at a glance Solid development despite difficult environment Key figures of the ANDRITZ GROUP (according to IFRS) Unit Q1 2009 Q1 2008* +/- 2008 Order intake MEUR 981.4 1,195.7 -17.9% 3,705.3 Order backlog (as of end of period) MEUR 4,464.0 4,321.4 +3.3% 4,277.4 Sales MEUR 790.1 750.9

  9. Slide 9: Q1 2009: Balance sheet structure

    Q1 2009: Balance sheet structure Continued good net cash position ƒ Total assets increased slightly, to 3,166.0 MEUR as of March 31, 2009 (December 31, 2008: 3,086.3 MEUR). ƒ Gross cash position of ~877 MEUR as of March 31, 2009 (~822 MEUR as of December 31, 2008); net liquidity increased to ~458 ME

  10. Slide 10: ANDRITZ share

    ANDRITZ share Solid development despite global financial crisis Performance comparison ANDRITZ share vs. ATX since IPO ANDRITZ ANDRITZ: +393.5% IPO of ANDRITZ on June 25, 2001 ATX ATX: Shareholder structure +50.6% Free float 71% Certus (CEO) 29% S = share split on May 3, 2007 Broad research coverage

  11. Slide 11: Contents

    Company presentation Contents ƒ Business profile and results Q1 2009 ƒ Market expectations and key aspects by business area ƒ Outlook 2009 and goals 2010/2011 11 Company presentation – July 2009

  12. Slide 12: Market situation 2008 + expectations 2009

    Market situation 2008 + expectations 2009 Most ANDRITZ business areas are expected to be relatively resistant against an economic downturn Market in 2008 Expectations for 2009 HYDRO Very good Very good PULP & PAPER Neutral Negative METALS (Very) good Neutral/negative ENVIRONMENT & PROCESS Good Good

  13. Slide 13: Key aspects by business area (I)

    Key aspects by business area (I) Long-term drivers in place – however, some businesses negatively impacted short-term HYDRO ƒ Green electricity. ƒ Replacement of existing aged installed base in Europe and North America. ƒ Growing electricity demand in emerging markets. ƒ Economic stimulus packages.

  14. Slide 14: Key aspects by business area (II)

    Key aspects by business area (II) Long-term drivers in place – however, some businesses negatively impacted short-term METALS ƒ Continuing low capacity utilization in the carbon and stainless steel industries; bottom appears to have been reached. ƒ Weak cash flows at customers limit capex for next f

  15. Slide 15: Volatility

    Volatility ~65% of the Group’s business volume is less volatile HYDRO PULP & PAPER METALS ENVIRONMENT & PROCESS (~45% of order intake) (~25% of order intake) (~15% of order intake) (~10% of order intake) Service: 30% Biomass: 10% Very cyclical: 60% Less volatile Very volatile Less volatile Very vola

  16. Slide 16: Contents

    Company presentation Contents ƒ Business profile and results Q1 2009 ƒ Market expectations and key aspects by business area ƒ Outlook 2009 and goals 2010/2011 16 Company presentation – July 2009

  17. Slide 17: Outlook for 2009

    Outlook for 2009 No change in market expectations, guidance confirmed ƒ Still difficult economic environment in all major regions of the world; low project visibility, especially in the PULP & PAPER and METALS business areas, thus making it very difficult to predict the development of Group’s order

  18. Slide 18: EBITA margin target

    EBITA margin target 7% on a sustainable basis ƒ Average EBITA margin 1998-2002: 4.4%. ƒ Average EBITA margin 2003-2007: 5.9%. ƒ Target to have long-term sustainable EBITA margin of 7% over the cycle. 3,610 3,283 8.0 2,710 6.3 6.4 6.5 6.1 6.1 ? 5.9% 5.2 5.3 5.1 1,744 4.7 1,481 1,319 4.4% Margin 1,225

  19. Slide 19: Dividend payout ratio target

    Dividend payout ratio target Increasing steadily to ~50% by 2010. 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 2002-2006 adju

  20. Slide 20: 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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