Andritz AG · VIE:ANDR
Andritz — Investor Conference Kitzbühel, January 2007
29 slides from Andritz's conference presentation, January 2007
Slide 1: Company presentation
Company presentation Investor Conference Kitzbühel, January 2007
Slide 2: Agenda
Agenda § Andritz Group profile § Andritz VA TECH HYDRO § Group outlook 2007 and goals 2
Slide 3: A world market leader in most business areas
A world market leader in most business areas Production systems and services for: Rolling Mills & Environment & Feed Pulp & Paper Hydro Power Strip Processing Process & Biofuel 45% of 24% of 15% of 12% of 4% of Group Sales* Group Sales* Group Sales* Group Sales* Group Sales* Systems for Turnkey Syst
Slide 4: Global company with global customers
Global company with global customers ANDRITZ Oy Finland ANDRITZ Inc. USA ANDRITZ GROUP Headquarters Graz/Austria Employees by region (30.9.2006) Order Intake by region (Q1-Q3 2006) (including VA TECH HYDRO) Germany: Others: 19% Austria: Asia (excl. 6% 26% China): 13% Total workforce: China: Europe:
Slide 5: Continued strong growth
Continued strong growth Andritz Group Sales in MEUR 2800 2500 1744 CAGR of Sales 1481 1319 since 1990: +14% 1225 1110 937 666 656 1998 1999 2000 2001 2002 2003 2004 2005 2006E 2006E Pro-forma incl. VA TECH HYDRO 5
Slide 6: Solid performance of the Andritz share
Solid performance of the Andritz share ANDRITZ 18/12/06 160 140 Shareholder structure 120 Certus 100 (CEO) 26% 80 60 Free float Manage- 72% 40 Andritz ment 2% 20 ATX 0 2001 2002 2003 2004 2005 2006 ANDRITZ Share price performance of Andritz (1-12/2006): +74.9% • Market capitalization: ~2 bn EUR • Ne
Slide 7: Agenda
Agenda § Andritz Group profile § Andritz VA TECH HYDRO § Market § Business Profile § Integration § Group outlook 2007 and goals 7
Slide 8: Andritz among the top three suppliers worldwide for hydropower equipment
Andritz among the top three suppliers worldwide for hydropower equipment Andritz VA TECH HYDRO is a global supplier of turnkey Total world market volume electro-mechanical for hydropower equipment: 4 bn EUR p.a. equipment and services for hydropower plants with a leading position in the growing Andr
Slide 9: Andritz VA TECH HYDRO covers all types and sizes of turbines
Andritz VA TECH HYDRO covers all types and sizes of turbines Storage / Pumped storage: Run-of-river: Pelton Francis / Pump turbine Kaplan / Bulb turbine Output range: 0.1 - 400 MW/unit Output range: 0.1 - 800 MW/unit Output range: 0.1 - 250 MW/unit Head range: 100 - 1,800 m Head range: 15 – 1,000 m
Slide 10: Sources of electricity generation
Sources of electricity generation 2001 2010E +2.4% p.a. 16,400 TWh 9% 13,300 TWh 14% 8% 17% 21% 18% 21% 18%¹ +4.1% p.a. 39% 35% Coal Renewables Gas Nuclear Oil Major developments § Depletion of natural resources § National independence of power generation Growing demand for renewable and § Rising oi
Slide 11: Electricity generation
Electricity generation 2001 2010E ~90% from hydropower Renewables Oil Gas 21% 9% Renewables Oil Gas 21% 18% 8% 18% Nuclear Nuclear 17% 14% Coal 39% Coal 35% Hydropower is by far the most important renewable source for electricity. The annual avoidance of CO2 generation through hydropower worldwide i
Slide 12: Market potential
Market potential The predominant markets for rehabilitation and upgrades are Europe and North America 70% 65% 55% World Average: 50% 35% 30% 25% 15% Installed capacity: 154,000 MW 159,000 MW 87,000 MW 13,000 MW 30,000 MW 192,000 MW 125,000 MW Western North Eastern Africa Middle Developing Central/ E
Slide 13: Agenda
Agenda § Andritz Group profile § Andritz VA TECH HYDRO § Market § Business Profile § Integration § Group outlook 2007 and goals 13
Slide 14: Five business segments
Five business segments Andritz VA TECH HYDRO Large Hydro Compact Pumps Generator Hydro Service Hydro Turbo Central Functions 14
Slide 15: Key facts about VA TECH HYDRO
Key facts about VA TECH HYDRO Pro-Forma Sales 2006E for Employees by region for Hydro Power Business Area VA TECH HYDRO 650 720 Germany: MEUR MEUR 11% India: Austria: + = 14% Total 43% workforce: 70 3,079 MEUR Switzerland: 11% Sales South ROW (France, Andritz Hydro America: 6% Spain, Norway, VA TECH
Slide 16: Large Hydro
Large Hydro § Large Hydro contributes Shiwa Tidal Power Plant / Korea approx. 45 % to the Hydro Power Business Area‘s Sales: RGEST A T ’S L R PLAN §Electro-mechanical LD WORL POWE packages (85% of Sales) TIDA §Product business: turbines, generators, penstocks & gates, shut- off devices, balance of p
Slide 17: Large Hydro: Orders under implementation
Large Hydro: Orders under implementation Lower Olt River / RO Dolna Arda / BG PdF II & Gogosou / RO Karahnjukar / IS Tsankov Kamak / BG Ermenek / TR Glendoe / GB Rock Borcka / TR Island / US Limberg II / AT Deriner / TR Sihwa Hintermuhr / AT Tidal / KR Grand Nestil / CH Tong Bai / CN Coulee / US Kop
Slide 18: Bulgaria – Tsankov Kamak Hydropower plant
Bulgaria – Tsankov Kamak Hydropower plant First joint implementation project based on stipulations by the Kyoto Protocol: EAL OF CIAL D 2003, ( §Order volume: 200 MEUR; start-up in 2007 N FINA E YEARONEY) TH ROM §One new plant and refurbishment of EU existing River-Vacha cascade §Greenhouse gas redu
Slide 19: Hydro Service
Hydro Service § Hydro Service contributes approx. 25 % to the Hydro Power Business Area‘s Sales: §Rehabilitation: upgrade and modernizations §Service (maintenance, field service, training) §Focus is on services, and on small and medium-sized modernization projects, as well as on servicing of Diagnos
Slide 20: Compact Hydro
Compact Hydro § Compact Hydro contributes approx. 10 % to the Hydro Power Business Area‘s Sales: § Water-to-Wire packages for small and medium-sized hydropower plants up to an output of 15 MW n Market trends: n Trend towards small, environmentally friendly hydropower plants n New drivers are green e
Slide 21: Pumps
Pumps Pumps contribute approx. 10 % to the Hydro Power Business Area‘s Sales PUMPS Large Scale Pumps Centrifugal Pumps § for thermal power stations § for the pulp & paper § for irrigation plants industry § for water supply systems § for thermal power plants Double suction Centrifugal type pump for C
Slide 22: Generator Turbo
Generator Turbo § Generator Turbo contributes approx. 10% to the Hydro Power Business Area‘s Sales: § Production of air-cooled turbo generators from 50 up to 175 MVA for GE gas turbine; manufactured at own site in Weiz, Austria § Turbo generators are used in gas- combined-cycle power plants and comb
Slide 23: Agenda
Agenda § Andritz Group profile § Andritz VA TECH HYDRO § Market § Business Profile § Integration § Group outlook 2007 and goals 23
Slide 24: Integration of VA TECH HYDRO
Integration of VA TECH HYDRO Integration of VA TECH HYDRO into the Andritz Group focuses on three different areas: Markets Products Cross Functions • Eliminate overlaps • Small turbine • Integration of R&D in service business operations so far activities in Austria and handled by Graz • Harmonizing
Slide 25: Summary
Summary Hydropower is the most developed and feasible renewable energy with highly proven technology supporting the Kyoto target Andritz VA TECH HYDRO … § … takes advantage of continuous market growth for investments in the electrical power industry § … is well positioned as one of the top players i
Slide 26: Agenda
Agenda § Andritz Group profile § Andritz VA TECH HYDRO § Market § Business Profile § Integration § Group outlook 2007 and goals 26
Slide 27: Market outlook 2007
Market outlook 2007 Solid market environment for all Business Areas expected Pulp and Paper Rolling Mills and Strip Processing Lines -High project activity for greenfield pulp Focus on plants for production of high- mills expected, in particular in South quality steel and stainless steel products, A
Slide 28: Group Goals: EUR 3 bn Sales and 7% EBIT margin
Group Goals: EUR 3 bn Sales and 7% EBIT margin Order Backlog Andritz Group goals Record Order Backlog as of 30.9.2006 of Group Sales: over 3.5 billion EUR Based on the very high Order 30.9.2006: Backlog and full consolidation of 3.5 bn EUR VA TECH HYDRO, Andritz Group Pulp and Sales are expected to
Slide 29: A Global Market Leader
A Global Market Leader in High-Tech Production Systems for Pulp & Paper, Steel and other Specialized Industries
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