capital market days 2012, germany€¦ · boiler mact1: reducing hazardous air pollutants; epa...

Capital Market Days 2012, GermanyANDRITZ Energy & Environment

1. History and integration into the ANDRITZ GROUP

2. AE&Eʼs products and markets

3. Summary

Contents

3

Simmering-Graz-Pauker: foundation of a copper-smith’s shop by Josef Pauker

Waagner-Biró: In 1854, Rudolf P. Waagner opens an ironmon-gery busi-ness; in the same year, Anton Biró founds a building locksmith’s shop

Aktien-gesell-schaft R. Ph. Waagner

AE Energie-technik GmbH

Babcock Borsig-Gruppe

1853 1854 1900 1999

Austrian Energy & Environment SGP/Waagner Biró GmbH

VA-TECH-Gruppe

1991/1992

AE&E Austria GmbH & Co KG1

A-TEC-Gruppe2

2002/2010 2011

ANDRITZ Energy & Environment GmbH, part of the ANDRITZ GROUP

1 Name used from 2008 until takeover by ANDRITZ; 2 Founded as ATB Beteiligungs GmbH in 2001, renamed to A-TEC Industries AG in 2004

ANDRITZ Energy & Environment – Karl Hornhofer – Capital Market Days 2012, Germany

ANDRITZ Energy & Environmentʼs historyMore than 150 years of experience


Air pollutioncontrol

Recovery and power

Kraft and paper mill services

Fiber tech-nologies

Pulping and fiber

Pulp drying and biax film

Paper and nonwoven

Automation solutions

Maintenance solutions

Steamgeneratorsand plants

Power plant services

Three AE&E business units: Air pollution control: separate division within PULP & PAPER (P&P) business area Steam generators and plants: integrated into existing P&P division Power plant services: integrated into existing P&P division

Synergies: Boiler business within pulp and paper industries ANDRITZ products used in AE&E systems (e.g. pumps, band filter, automation) AE&E’s products and services favorably strengthen and extend the PULP & PAPER portfolio

AE&E: Sales of ~150-200 MEUR/a ~340 employees as of September 30, 2012 Locations in Austria (Graz and Vienna), China (Shanghai), the US, and Chile

Integration into the PULP & PAPERbusiness area already completed

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3. Summary

Contents


Turceni, Romania

Ledvice, Czech Republic

Slovnaft, Slovakia

Lünen, Germany

Karlsruhe,Germany

Moerdijk, Netherlands

Neurath, Germany

Witzenhausen, Germany

Average order size: ~50 MEUR

Products: Wet flue gas cleaning/wet limestone FGD Dry flue gas cleaning (see right-hand side) Multi-stage flue gas cleaning DeNOx systems/selective catalytic reduction (SCR)

Air pollution controlWide product range with more than 200 references

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Market drivers:

Emission standards in EU and USA Regulation changes regarding new emission standards in several countries (e.g. Chile,

India)

Market potential:

~3.4 bn. EUR p.a. globally; AE&E currently has access to markets with a potential of~1.4 bn. EUR p.a. (e.g. planned market entry in the USA 2012/2013)

Competitive position:

Leading flue gas cleaning supplier in Europe One of the market leaders in China (AE&E technology, installed by licensees)

Customer industries:

Power stations, waste recycling facilities, cement industry, chemical industry, refineries, iron and steel industry, municipalities (energy from waste and biomass)

1 Maximum Achievable Control Technology; 2 Cross-State Air Pollution Rule; 3 Mercury and Air Toxics Standards

Emission regulations in the USA: Despite some uncertainty concerning timing and scope, EPA (Environmental Protection Agency) will likely

continue to move towards increasingly stringent emission limits that require air pollution controls, e.g.: Boiler MACT1: reducing hazardous air pollutants; EPA estimates that ~14,000 boilers will be affected CSAPR2: significant reduction in SO2 and NOx emissions MATS3: standards for coal-fired and oil-fired power plants

If all regulations come into force, experts estimate that the air pollution market in the USA could increaseup to 2.4 bn. EUR p.a. (current market volume in the USA without these regulation drivers: 0.8 MEUR p.a.)

Rising emission standards drivemarket for air pollution control

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0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Other

Renewable

Hydroelectric

Nuclear

Natural gas

Petroleum

Coal

50.0% 50.8% 49.8% 49.6% 49.0% 48.5% 48.2% 44.4% 44.8% 42.2%

18.2% 17.1% 18.3% 19.1% 20.4% 21.9% 21.7%23.6% 24.2% 25.0%

3,858,453 3,883,187 3,970,554 4,055,421 4,064,7014,156,746 4,119,387

3,950,3314,125,059 4,105,735

Source: EIA

US power production by fuel typeCoal and gas as prime energy sources

Annual totals; in thousand Megawatt hours

ANDRITZ Energy & Environment – Karl Hornhofer – Capital Market Days 2012, Germany8


AES Gener/Norgener,

Chile:

On EPC basis: two turnkey flue gas desulphurization plants including two fabric filters for the Tocopillacoal-fired power plant; flue gas desulphurization plant, fabric filter, and bag filter plant for the Ventanascoal-fired power station

Start-up: 2013

Local authority of Timisoara,

Romania:

Flue gas cleaning plant forming part of a modernization project to promote environmental protection in the combined heat and power plant of Timisoara

Start-up: 2013

CEZ/Skoda Praha Invest,

CzechRepublic

Flue gas desulphurization plant for the Tusimice II coal-fired power plant

Start-up: 2011▲ Flue gas cleaning plant for Timisoara, Romania

Air pollution controlImportant orders and start-ups since ANDRITZ takeover

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Air pollution controlAcquisition of AES, USA

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Products and services:ANDRITZ has acquired Allied Environmental Solutions (AES), now ANDRITZ Environmental Solutions, a supplier of air quality control technology for the power generation market in the USA

Strategic fit and goal:Strengthening of existing AE&E portfolio and market entry for AE&E products/services in the USA

Headquarters:Columbia, Maryland, USA

Number of employees:~40

Annual sales:~30 MEUR

▲ Dry scrubbing technology for Circulating Fluidized Bed (CFB) boiler

▲ Fabric filter systems, especially for coal-fired power plants


Bollnäs, Sweden

Yunus Emre, Turkey

Maxau, Germany

Busan, South Korea

Hong Kong, China

Eisenhüttenstadt, Germany

Amakhulu, South Africa

Voestalpine Stahl, Austria

Average order size: ~40-60 MEUR

Products: Bubbling fluidized bed boilers Circulating fluidized bed boilers (see right-hand side) Sulfite liquor boilers Soda liquor boilers Blast furnace gas boilers

Steam generators and plantsFull range of boiler technology with more than 200 references

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Market drivers:

Renewable energy incentives Emission regulations Landfill ban

Market potential:

~1 bn. EUR p.a. globally

Competitive position1:

Global market leader in bubbling fluidized bed boilers as well as sulfite and soda liquor boilers

One of the market leaders in circulating fluidized bed boilers and blast furnace gas boilers


Pulp and paper industry, utility companies, steel mills, petrochemical and chemical industry

▲ M-real, Austria: fluidized bed technology for the pulp and paper industry

1 Worldwide except India and China (currently not AE&E markets)

Strong global market position in the boiler business

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Tembec, Canada

Sulfite liquor boiler for the Temiscaming pulp mill

Start-up: 2013

E.ON Climate & Renewables

UK Biomass, UK

Bubbling fluidized bed boiler plant for the Blackburn Meadows renewable energy plant

Start-up: 2014

PoscoEngineering & Construction, South Korea

Circulating fluidized bed boiler for the Donghae biomass power plant

Start-up: 2013

Left: Temiscaming Right: Blackburn MeadowsBottom: Donghae

Steam generators and plantsImportant orders since ANDRITZ takeover

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Bergkamen, Germany

OMV,Austria

Golbey Norske Skog, France

Zweckel, Germany

Klabin, Brazil

Eisenhüttenstadt, Germany

Vasilikos, Cyprus

Ataka, Egypt


Average order size: rebuilds ~5 MEUR, replacements/spare and wear parts: ~0.5 MEUR

Portfolio: Rebuild and upgrades Spare and wear parts Plant operation and maintenance Field service and consultancy R&D

Power plant servicesMore than 400 references worldwide

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Market drivers:

Old installed base drives demand for replacements, spare parts, and life time extensions

New emission limits (modernizations) CO2 cost optimization (efficiency

improvement, fuel conversion to biomass, „green“ projects)

Market potential:

~700 MEUR p.a. in the pulp and paper industry globally

Competitive position:

Strong position in service for OEM installations

Goal: world market leader for boiler service in the pulp and paper industry (together with the pulp and paper services unit of PULP & PAPER business area)


Pulp and paper industry, steel industry,utilities, refineries, waste incineration

Old installed base and legalrequirements as main drivers

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Electricity Authority

of Cyprus

Boiler conversion from oil to gas firing at the Vasilikospower station

Start-up: 2013

East Delta Electricity

Production Company, Egypt

Rehabilitation of two boilers at the Ataka plant

Start-up: end of 2011

Propower GmbH Eisenhütten-

stadt, Germany

Annual shutdown at the Eisenhütten-stadt mill

▲ Ataka, Egypt

▲ Vasilikos, Cyprus

▼ Eisenhüttenstadt, Germany

Power plant servicesImportant orders since ANDRITZ takeover

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3. Summary

Contents


Integration of AE&E already completed

AE&E’s products and services favorably strengthen and extend the PULP & PAPER portfolio

Several important orders and start-ups since acquisition AE&E among the world marketleaders in all three business units

More stringent environmental regulations and old installed base should support long-term growth

Summary

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Capital Market Days 2012, GermanyANDRITZ Energy & Environment

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 may cause actual results to differ materially.

As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it wouldbe required to do so under applicable law.

According to IFRS.

Disclaimer

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