Andritz Ag · VIE:ANDR
Andritz — Investor Day (2008)
17 slides from Andritz's investor day presentation, 2008
Slide 1: The Andritz Group – Capital Market Days 2008
The Andritz Group Capital Market Days 2008, Austria 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 expectation
Slide 2: Review on targets of past Capital Market Days
Contents UPDATE ON GOALS OF PAST CAPITAL MARKET DAYS Growth development and Andritz’s markets Focus areas 2009 Goals 2010/2011 Summary Capital Market Days 2008_The Andritz Group_Wolfgang Leitner Slide No. 3 Review on targets of past Capital Market Days Increase profitability (EBITDA) of Feed Capit
Slide 3: Update on EBITA margin target of 7%
Update on EBITA margin target of 7% Margin development in recent years mainly influenced by acquisition of VA TECH HYDRO in 2006 and fast growth of the capital business: > Excluding VA TECH HYDRO, EBITA margin in 2007 would have been 6.8%. > Due to the strong growth of the capital business, servic
Slide 4: Continuation of Group growth; Sales growth in all business areas
Continuation of Group growth For 2008, Group sales are expected to increase to 3.5 bn Euro. th) row 3,500 a nic g 3,283 or g . p. a f 12% reo 2,710 .( the p. a 19% 007: + 8-2 199 GR 1,744 CA 1,481 1,319 1,225 1,110 937 666 656 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E Capital Market Da
Slide 5: Acquisition of assets of GE's Hydro business
Acquisition of assets of GE’s Hydro business Acquisition of GE Energy’s hydropower technology (turbines and generators) and specialized generator component production facilities in Canada as well as GE Energy’s majority interest in the GEHI (General Electric Hydro Inepar) joint venture in Brazil.
Slide 6: Growth through acquisitions 2008 (II); Business areas: market situation
Growth through acquisitions 2008 (II) September 2008: acquisition of Kufferath, Germany Attractive addition to Pulp & Paper service; will support Andritz’s effort to strengthen position in tissue and board machines. Kufferath will benefit from ‛captive’ Andritz pulp machine business. Need to r
Slide 7: Well balanced geographical presence
Contents Update on goals of last Capital Market Days Growth development and Andritz’s markets FOCUS AREAS 2009 Further increase presence in emerging markets Manage operations Further organic and acquisitive growth Goals 2010/2011 Summary Capital Market Days 2008_The Andritz Group_Wolfgang Leit
Slide 8: Increase of capex especially in Asia
Increase of capex especially in Asia Relatively stable capex development during the last decade of ~1.5-2% of total sales. Increased capex in Asia. 57 MEUR Capex by region 1998 2007 % Europe 75% 68% 07 +3 North America 25% 6% South America 0% 4% 14 MEUR Asia 0% 21% ROW 0% 1% 1998 2007 1998 2007
Slide 9: Employees: increase in low cost countries
Employees: increase in low cost countries Already 26% of all Andritz employees in Eastern Europe and BRIC countries. Employees Eastern Europe and BRIC ~26% Employees Eastern Europe H1 2008: 600 Employees BRIC countries H1 2008: China: 1,200 Brazil: 1,000 India: 700 ~2% 2000 H1 2008 Capital Mar
Slide 10: Manage operations
Contents Update on goals of last Capital Market Days Growth development and Andritz’s markets FOCUS AREAS 2009 Further increase presence in emerging markets Manage operations Further organic and acquisitive growth Goals 2010 Summary Capital Market Days 2008_The Andritz Group_Wolfgang Leitner S
Slide 11: Further complementary acquisitions
Contents Update on goals of last Capital Market Days Growth development and Andritz’s markets FOCUS AREAS 2009 Further increase presence in emerging markets Manage operations Further organic and acquisitive growth Goals 2010/2011 Summary Capital Market Days 2008_The Andritz Group_Wolfgang Leit
Slide 12: Well balanced market/customer mix; Organic expansion through R&D
Well balanced market/customer mix Serving industries with long-term growing markets. Focus on fast growing segments: renewable energy products, stainless steel, tissue paper. > Over 40% of Andritz’s sales are derived from renewable energy products: PULP & HYDRO ENVIRONMENT & FEED & PAPER POWER P
Slide 13: Successful entry into biomass boiler business
Successful entry into biomass boiler business In 2006, decision to expand product portfolio with biomass power boilers based on fluidized bed technology. First biomass power boiler sold in Q1 2007, commissioning expected in November 2008. Rapid expansion of order intake for biomass power boile
Slide 14: Sales target: 4.5 bn. EUR by 2010/2011
Contents Update on goals of last Capital Market Days Growth development and Andritz’s markets Focus areas 2009 GOALS 2010/2011 Summary Capital Market Days 2008_The Andritz Group_Wolfgang Leitner Slide No. 27 Sales target: 4.5 bn. EUR by 2010/2011 Moderate downside risk. Weak overall economy mean
Slide 15: EBITA margin target; Increase dividend payout ratio to ~50%
EBITA margin target: 7% on a sustainable basis Average EBITA margin 1998-2002: 4.4%. Average EBITA margin 2003-2007: 5.9%. Target to have long-term sustainable EBITA margin of 7% over the cycle. 8.0 6.5-7.0 6.3 6.1 6.1 ? 6.0 5.9% 5.3 Margin 5.2 5.1 development 4.7 depends on 4.4% overall 3.5 e
Slide 16: Summary
Contents Update on goals of last Capital Market Days Growth development and Andritz’s markets Focus areas 2009 Goals 2010/2011 SUMMARY Capital Market Days 2008_The Andritz Group_Wolfgang Leitner Slide No. 31 Summary Effect of financial turmoil on global economy not yet clear. Majority of Andritz
Slide 17: Our Vision
OUR VISION: World market leader for high-tech production systems and services for pulp, paper, hydropower, steel, and other specialized industries.