Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (April 2008)
32 slides from Andritz's investor presentation, April 2008
Slide 1: Company presentation April 2008
Company presentation April 2008
Slide 2: 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
Slide 3: Contents
Contents COMPANY PROFILE GROWTH DRIVERS FOR ANDRITZ’S BUSINESS AREAS SUMMARY AND OUTLOOK APPENDIX: FULL YEAR RESULTS 2007 IN DETAIL Slide No. 3
Slide 4: A world market leader in most business areas
A world market leader in most business areas Production systems and services for: PULP & HYDRO- ROLLING MILLS & ENVIRONMENT & FEED & PAPER POWER STRIP PROCESSING PROCESS BIOFUEL 45% of 28% of 12% of 11% of 4% of Group Sales Group Sales Group Sales Group Sales Group Sales Systems for Tu
Slide 5: Strong growth by organic expansion and acquisitions
Strong growth by organic expansion and acquisitions PULP & ROLLING MILLS & Compound Annual Growth Rate of Group Sales PAPER STRIP PROCESSING LINES 1998–2007: +19% 1990 Sprout-Bauer 1997 Sundwig 1992 Durametal 1998 Thermtec 1994 Kone Wood 2000 Kohler 1998 Kvaerner Hymac 2002 SELAS SAS 1999 Winberg Fu
Slide 6: Unchanged solid balance sheet structure
Unchanged solid balance sheet structure Gross cash position of approximately 600 MEUR as of end of 2007 Net liquidity, at 246.5 MEUR as of 31.12.2007, below the exceptionally high level as of 31.12.2006 (365.7 MEUR) Equity ratio of 19.2% as of 31.12.2007 (31.12.2006: 17.4%) Total assets: 2,508
Slide 7: 2007 – another record year for Andritz
2007 – another record year for Andritz Continued growth based on organic expansion and complementary acquisitions Sales increased to 3.3 bn EUR: +21.1% vs. 2006 Order Intake, at 3.7 bn EUR, at new record high: +29.7% vs. 2006 Order Backlog, at 3.8 bn EUR, also at new record high: +13.1% vs. 20
Slide 8: Results at a glance
Results at a glance Slightly lower average cash level leads to decrease of financial result compared to 2006 Due to new assessment of recoverability of tax losses carried forward, the Group’s tax rate increased to 31.3% in 2007 (2006: 26.9%); for 2008, tax rate is expected to go down again to ~2
Slide 9: Order Intake & Sales by region
Order Intake & Sales by region Order Intake in % 2007 (2006) Sales in % 2007 (2006) Other: Other: 5 (6) 6 (3) Asia (excl. China): Asia (excl. China): 15 (13) 10 (12) China: Europe: China: Europe: 3,749.5 3,282.5 9 (16) MEUR 41 (40) 15 (15) MEUR 43 (38) South America: South America: 10 (11) 10 (16) N
Slide 10: Increase in number of employees
Increase in number of employees Employees by region in % 2007 (2006) Number of employees in 2007: +17.6% vs. 2006 Approx. 20% of employees in BRIC countries Significant increase of employees in Europe Extension of business activities in China (new Others: Austria: iron foundry) 18 (15) 23 (25)
Slide 11: Solid performance of the Andritz share
Solid performance of the Andritz share Market capitalization: ~1.8 bn EUR 2004: 2005: 2006: 2007: 50 +53% +63% +75% +3% Share split of 1:4 on 3 May 2007 45 40 Shareholder structure 35 30 25 Free float: Certus (CEO): 20 72% 26% Andritz 15 10 ATX Management: 5 2% 0 2001 2002 2003 2004 2005 2006 20
Slide 12: Contents
Contents COMPANY PROFILE GROWTH DRIVERS FOR ANDRITZ’S BUSINESS AREAS SUMMARY AND OUTLOOK APPENDIX: FULL YEAR RESULTS 2007 IN DETAIL Slide No. 12
Slide 13: Many pulp mill projects based on . . .
Many pulp mill projects based on . . . High project activity for new pulp mills/expansion of existing lines to continue during the next few years In total, approximately 15 million tons of new pulp mill capacity are expected to be decided until 2012 Major planned or announced new pulp mill/expan
Slide 14: . . . fast growing plantations . . .
. . . fast growing plantations . . . Approx. 150,000–200,000 ha of plantations needed for pulp mill with 1 million tons capacity Area of industrial fast-growing plantations will increase by 60% by 2020 Area of industrial fast-growing plantations 2005 and 2020: Source: J. Pöyry Slide No. 14
Slide 15: Hydro Power: high project activity worldwide
Hydro Power: high project activity worldwide Andritz VA TECH HYDRO is a global leading supplier of turnkey electromechanical equipment and services for hydropower plants with a leading position in the growing market of plant refurbishment Continued high project activity worldwide, with focus on
Slide 16: Installed Capacity: big replacement cycle underway
Big replacement cycle underway The predominant markets for rehabilitation and upgrades are Europe and North America World Average 50% Asia 192,000 MW 25% North America Installed Capacity 65% 159,000 MW Western Europe 70% 154,000 MW Central/South America 15% 125,000 MW Eastern Europe 87,000 MW 55% Mi
Slide 17: Supplier of renewable energy products
Supplier of renewable energy products Approximately 35-40% of Andritz’s Sales are derived from renewable energy products PULP & HYDRO- ENVIRONMENT & FEED & PAPER POWER PROCESS BIOFUEL Recovery boilers in Water turbines and Conversion of sludge Systems for pulp mills generate generators into
Slide 18: Rolling Mills & Strip Processing Lines: good project activity
Rolling Mills & Strip Processing Lines: good project activity Overall continued good project activity with focus on . . . > China Long-term modernization of domestic steel industry targeted Continued expansion of stainless steel capacities due to fast growing demand; market share of Andritz: ove
Slide 19: Environment & Process – excellent growth prospects
Environment & Process – excellent growth prospects Andritz offers complete systems for solid/liquid separation (centrifuges, thermal driers) for various types of sludges from municipalities and industries Directives and stringent environmental regulations as long-term major growth drivers, espec
Slide 20: Feed & Biofuel – continued strong organic growth
Feed & Biofuel – continued strong organic growth Andritz is a world market leader for plants to produce animal feed and biofuel pellets out of materials, such as wood, peat, and agricultural by-products Continued strong organic growth of Order Intake; main contributor is wood pelleting equipment
Slide 21: Contents
Contents COMPANY PROFILE GROWTH DRIVERS FOR ANDRITZ’S BUSINESS AREAS SUMMARY AND OUTLOOK APPENDIX: FULL YEAR RESULTS 2007 IN DETAIL Slide No. 21
Slide 22: Outlook 2008
Outlook 2008 So far, the slowdown of the US economy and the turmoil on the global financial markets have not had an impact on Andritz’s relevant markets; from today’s point of view, Andritz continues to see good project activity in all Business Areas Continuation of strategy to acquire complemen
Slide 23: Contents
Contents COMPANY PROFILE GROWTH DRIVERS FOR ANDRITZ’S BUSINESS AREAS SUMMARY AND OUTLOOK APPENDIX: FULL YEAR RESULTS 2007 IN DETAIL Slide No. 23
Slide 24: Order Intake at new record high
Order Intake at new record high + 14.7% organic growth Feed & Biofuel: +13.1% vs. 2006 3,750 29.7 % Environment & Process: 2,891 + +0.8% vs. 2006 Rolling Mills & Strip Processing Lines: +58.3% vs. 2006 * Hydro Power : 2006 2007 +107.7% vs. 2006 Group Order Intake (MEUR) Pulp & Paper: -1.8% vs. 2006
Slide 25: High Order Backlog provides good Sales visibility
High Order Backlog provides good Sales visibility Order Backlog rises 13.1% compared to 2006 Feed & Biofuel: 3.1 % +16.9% vs. 2006 +1 3,843 3,397 Environment & Process: -10.2% vs. 2006 Rolling Mills & Strip Processing Lines: 1,696 1,439 +56.5% vs. 2006 939 1,054 904 740 Hydro Power: +17.8% vs. 2006
Slide 26: Increase in Group Sales
Increase in Group Sales + 9.4% organic growth Feed & Biofuel: +14.3% vs. 2006 3,283 1% Environment & Process: 2,710 +21. -0.5% vs. 2006 Rolling Mills & Strip Processing Lines: -9.4% vs. 2006 * Hydro Power : 2006 2007 +94.5% vs. 2006 Group Sales (MEUR) Pulp & Paper: +12.1% vs. 2006 * Including consol
Slide 27: Positive development of Earnings
Positive development of Earnings EBITA margin increases from 6.0% in 2006 to 6.1% in 2007 Good business development in all Business Areas offsets the – already at the time of the acquisition expected – dilutive effect of VA TECH HYDRO on the Group’s margin EBIT margin, at 5.9% in 2007, was unc
Slide 28: Pulp & Paper
Pulp & Paper Market: overall good project activity: investment activity for new pulp plants focused on southern hemisphere (South America, Australia, Asia) and China; modernizations and refurbishments of existing installations were concentrated on Europe and North America Successful market entry
Slide 29: Hydro Power
Hydro Power Market: very good project activity worldwide: new hydropower plant projects mainly focused on emerging markets, especially on India, China, and South America; modernization of existing plants concentrated on Europe and North America Order Intake with more than 1.2 bn EUR above expect
Slide 30: Rolling Mills & Strip Processing Lines
Rolling Mills & Strip Processing Lines Market: very favorable project activity worldwide; investment activity for new plants and modernizations focused on Europe, the USA, Russia, China, and India Order Intake, at 636.4 MEUR, at new record high Slight decline in Sales due to the fact that many
Slide 31: Environment & Process
Environment & Process Market: very good project activity for sludge dewatering plants (focus on Europe, Asia, and USA); unchanged low investment activity for sludge drying plants; rising demand for biomass drying plants Stable development of Sales and Order Intake Earnings and profitability im
Slide 32: Feed & Biofuel
Feed & Biofuel Market: good project activity for animal feed plants (focus on Eastern Europe, Russia, Asia, Central and South America) and aquatic feed plants (focus on South America and Asia); unchanged high investment activity for wood pelleting equipment with focus on Northern and Southern Euro