the andritz groupatl.g.andritz.com/c/com2011/00/02/43/24392/1/1/0/-11602729/gr_rs... · 2 1....

Company presentation January 2013The ANDRITZ GROUP

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1. ANDRITZ GROUP overview

2. Business areas: market update and goals

3. GROUP: long-term goals and outlook

Company presentation January 2013

Contents

HYDRO40-45%*

Systems for the production of all types of pulp and of certain paper grades (tissue, cartonboard); boilers

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* Long-term average share of the ANDRITZ GROUP’s total order intake

Electromechani-cal equipment for hydropower plants (mainly tur-bines and genera-tors); pumps; turbo generators

Equipment for the mechanical and thermal solid/liquid separation for municipalities and various industries

Systems for the production and processing of stainless steel and carbon steel strips; industrial furnaces

Systems for the production ofanimal feed pellets (pet and fish food) and biomass pellets (wood, straw)

PULP & PAPER30-35%*

SEPARATION10%*

METALS10%*

FEED & BIOFUEL5%*

Company profileA world market leader in most business areas


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Sales of the ANDRITZ GROUP (MEUR)

Strengthening of the market positionGrowth through organic expansion and acquisitions

PULP & PAPER1990 Sprout-Bauer1992 Durametal1994 Kone Wood1998 Kvaerner Hymac1999 Winberg2000 Ahlstrom Machinery2000 Lamb Baling Line2000 Voith Andritz Tissue LLC (JV)2002 ABB Drying2003 IDEAS Simulation 2003 Acutest Oy2003 Fiedler2004 EMS (JV)2005 Cybermetrics2005 Universal Dynamics Group2006 Küsters2006 Carbona2006 Pilão2007 Bachofen + Meier2007 Sindus2008 Kufferath2009 Rollteck2010 Rieter Perfojet2010 DMT/Biax2011 AE&E Austria2011 Iggesund Tools2011 Tristar Industries2011 Asselin-Thibeau2012 AES

FEED & BIOFUEL1995 Jesma-Matador2000 UMT2005 Chemes Strojarne

HYDRO2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (55.4%)2010 Ritz2011 Hemicycle Controls

METALS1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz2012 Bricmont2012 Soutec2012 Schuler (~25%)

SEPARATION1992 TCW Engineering1996 Guinard2002 3SYS2004 Bird Machine2004 NETZSCH Filtration2004 Fluid Bed Systems2005 Lenser Filtration2006 CONTEC Decanter2009 Delkor Capital Equipment2009 Frautech2010 KMPT2012 Gouda


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Strong net cash positionStable development despite acquisitions

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1/3 2012

Rollteck

Frautech

Delkor

Ahlströmrem. 50%

Guinardrem. 50%

Fläkt

Selas

Fiedler

IDEAS

Acutest

Thermtecrem. 24.5%

Kaiser

AFSR

Netzsch

Bird

Lenser

Universal

Lynson

VA TECH HYDRO

Kuesters

BMB

Tigép

Sindus

GE Hydro

GEHI

Kufferath

Maerz

AE&E Austria Iggesund

Tools Tristar

Industries Asselin-

Thibeau Hemicycle

Controls Hammer-

fest (55%)

DMT/Biax

Rieter Perfojet

Precision Machine

KMPT

Ritz

Hammer-fest (33%)

* Paid out after AGM for the previous year

Dividend* (MEUR):11.5 11.7 12.9 18.0 25.6 38.7 51.1 56.3 51.7 86.9 113.6

Bricmont

Soutec

Schuler(~25%)

AES

3.0


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Q3 2012 Q1/3 2012

Order intake: Satisfactory development in Q3 2012, only slightly below high

reference figure of last year; increase in PULP & PAPER, METALS, and FEED & BIOFUEL, HYDRO down

Order intake in Q1/3 2012 below extraordinarily high level of last year’s reference figure, which included three large orders (two in PULP & PAPER, one in HYDRO)

1,239 MEUR,-1% YOY

3,793 MEUR,-23% YOY

Order backlog (as of end of period): unchanged at high level

6,930 MEUR,-5% vs. EOP 2011

6,930 MEUR,+4% vs. EOY 2011

Sales: In Q3 2012 increase in all business areas except

SEPARATION In Q1/3 2012 sales rose in all business areas, especially in

PULP & PAPER due to processing of two large pulp mill orders

1,266 MEUR,+8% YOY

3,703 MEUR,+16% YOY

Key figures at a glance (I)


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Key figures at a glance (II)

Q3 2012 Q1/3 2012

EBITA: EBITA in Q3 2012 slightly below Q3 2011 EBITA in Q1/3 2012 increased compared to last year, but not

fully matching sales growth

87 MEUR,-4% YOY

242 MEUR,+9% YOY

EBITA margin: decline in Q3 2012 and Q1/3 2012, mainly due to PULP & PAPER (execution of large pulp mill orders) and SEPARATION (cost overruns at some projects and investment in business expansion in emerging markets)

6.8%(Q3 2011: 7.7%)

6.5%(Q1/3 2011: 7.0%)

Balance sheet September 30, 2012

Equity ratio: stable 19.4% (EOY 2011: 20.6%)

Net liquidity: continuing high cash position 1,286 MEUR, -8% vs. EOY 2011

Net working capital: unchanged at solid level -639 MEUR, +/-0% vs. EOY 2011


◄ Mechanical press line for the automotive industry

Update on acquisition of Schuler AGANDRITZ has access to over 91% of Schuler shares

ANDRITZ has access to over 91% of Schuler shares

Takeover-offer is contingent on approval by anti-trust authority of China

8 Company presentation January 2013

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Global market leader for metal forming equipment (complete pressing lines, single presses, automation systems, and services)

Main end customer industries: automotive and automotive suppliers (~75%), packaging, household appliances, minting, aerospace (~25%)

Annual sales: ~1.1 bn. EUR

Backlog*: ~1.1 bn. EUR

~5,400 employees* and global pre-sence with production and service sites in more than 40 countries

Sales by region*:

Order intake, sales, and EBITDA margin of Schuler Group

CAGR order intake: +7.6% CAGR sales: +9.2% EBITDA margin: avg. 6.6%

Schuler: Global leader in metal forming technology,broadening ANDRITZ’s product range in METALS

* As of September 30, 2012** Including Müller Weingarten Group

April 1-September 30

Germany 32%Europe (without Germany) 20%Asia 33%America 15%


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CAGR 2008-2016E

■ Others (South America, South Africa) +6.1%

■ China +15.7%

■ Asia (without China) +1.5%

■ USA +3.0%

■ Europe +0.6%

Source: OICA, PwC, JSC Automotive, figures include number of cars and light commercial vehicles (without heavy trucks, buses, and coaches)

Million units

67

58

73 76 7882

8590

94

Global automobile manufacturing to grow by 4% p.a.Strongest growth in emerging markets


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China expected to show strongestgrowth in automobile manufacturing

Source: OICA, PwC, JSC Automotive, figures include number of cars and light commercial vehicles (without heavy trucks, buses, and coaches); Others include South America and South Africa


Automobile manufacturing by region 2011

Schuler: sales by region Q1/3 2011/12

Regional split of expected automobile manufacturing growth 2011-2016

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Goal to reduce CO2 and fuel consumption: ANDRITZ offerstechnologies for bio-ethanol/bio-diesel and weight reduction

Alternatives for CO2 reduction: Smaller cars

Gas/electric/hybrid cars

Bio-ethanol/bio-diesel

Weight reduction Tailor-welded blanks Hot-forming Aluminum casting Plastic/synthetic material Carbon fiber

▲ BMW 328 Hommage: Most of the exterior and interior is made of plastic material reinforced with carbon fiber so that BMW claims the car is very light and more stable than aluminum.


Tailor-welded blanks volume worldwideChina again outpaces rest of the world

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Source: J.D. Power

CAGR 2008-2016

■ Mercosur +3.4%

■ China, rest of Asia +7.8%

■ Japan +0.4%

■ Nafta +1.4%

■ Europe +1.3%

247

MEUR

243 244265 271 274

298309

319


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ANDRITZ SoutecA leading supplier of welding systems

Products and services:Laser and rolled seam resistance welding systems for the metalworking industry

Strategic fit:Welding systems for tailor-welded blanks

Headquarters:Neftenbach, Switzerland

Number of employees:~90

Annual sales:~30 MEUR

Important reference customers:Baosteel (China), Arcelor Mittal (Europe, USA), voestalpine (Austria)


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Broad research coverageBaader Bank, Berenberg Bank, Cheuvreux, Citi Research, Commerzbank, Deutsche Bank, Erste Bank, Goldman Sachs, Hauck & Aufhäuser, HSBC, J.P. Morgan, Kepler Capital Markets, RCB, UBS, Warburg

Relative share price performance of the ANDRITZ share versus the ATX since the IPO:

Performance June 2001(IPO) until December 31, 2012: ANDRITZ: +1,749% ATX: +94%

Performance 2012: ANDRITZ: +48% ATX: +24%

Market capitalizationANDRITZ as ofDecember 31, 2012: 5,048 MEUR

ANDRITZ shareSolid performance, broad research coverage

S: share split - all data and key figures were adjusted accordingly


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Contents

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Market drivers

Population growth and economic growth in emerging markets drive demand for electricity; increasing interest in green electricity (hydro, wind, some solar)

Old installed base in developed world leads to continuous investment in modernization and rehabilitation of installed turbines and generators

Small-scale hydropower stations to show good demand due to low capex requirements and simple/short permission procedures

Unbalanced electricity market in Germany delays pumped storage capex in Central Europe; however, globally satisfactory activity

Good project activity in Turkey and some LATAM and Asian countries, relatively slow in Brazil

Low US gas prices may impact local hydropower demand▲ ANDRITZ bulb turbine, supplied for the world’s largest tidal power plant in Sihwa, South Korea

HYDROMarket update and outlook


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5.9 5.7

7.3 7.3 7.47.58.3

2006 2007 2008 2009 2010 2011 Q1/3 2012 2010 et seq.* Figures before 2006 (acquisition of VATECH Hydro) are not representative/valid for comparison with today’s HYDRO business area

EBITA margin goal HYDRO7.0-8.0%

Influencing factors on margin

General market development

Competition from Asia?

Investment in new markets (e.g. tidal current turbines)

- - - 2006*-2009: avg. 6.6% - - - Goal 2010 et seq.: 7.0-8.0%- - - 2006*-Q1/3 2012: avg. 7.1%


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Market drivers

Globally pulp consumption expected to show stable growth, with over-proportionate increase in Asia

Pulp production capex for greenfields to continue on good level in Asia and South America

Modernizations/upgrades in Europe and to some extent in the USA to continue

Paper: Globally P/W and Newsprint shrinking, packaging stable, with continuing growth in Asia

Tissue to continue growth, predominantly in emerging markets

Biomass energy expected to remain on good level Bioethanol 2nd generation slowly gaining ground Special segments (nonwoven, biaxially oriented plastic

films) offer good growth opportunities for ANDRITZ

PULP & PAPERMarket update and outlook

▲ ANDRITZ significantly increased production capacity of pulp line 2 at CMPSʼs Santa Fe mill, Chile


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5.1

6.1 5.8 6.1

7.3

6.4

7.3

1.9*

5.86.2 6.0

5.0

6.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1/32012

2010 etseq.

- - - 2000-2004: avg. 6.1%

* Including restructuring expenses

EBITA margin goal PULP & PAPER6.0-7.0%


Execution of large pulp mill orders

Share of service business/wear parts lower than at competitors

Investment in new markets (nonwoven, plastic films, biofuel)


- - - 2005-2009: avg. 5.0% - - - Goal 2010 et seq.: 6.0-7.0%- - - 2000-Q1/3 2012: avg. 5.8%

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Market drivers

Liquid/solid separation is a huge global market,

covering large parts of global economy

Stringent environmental regulations in developed

world as well as population growth, urbanization,

and fast economic expansion in emerging markets

ANDRITZ’s main segments: environmental,

minerals, chemicals, food

ANDRITZ has a broad, but still expandable product

range with good opportunities to grow in current

and new segments

Goal to grow 5-10% p.a. organically plus

acquisitions

Strong service business (over 30% of sales)

SEPARATIONMarket update and outlook


▲ Sewage sludge treatment plant in Düsseldorf,Germany, modernized by ANDRITZ

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5.3

0.81.4

4.5

7.97.67.47.1

5.76.1

3.0

5.7

8.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1/32012

2010 etseq.

EBITA margin goal SEPARATION7.0-9.0%

Influencing factors on margin Cost overruns on some projects

Investment in market expansion (mining, food) and service business

Acquisitions

Competitors from emerging markets?


- - - 2000-2004: avg. 3.0% - - - 2005-2009: avg. 6.8% - - - Goal 2010 et seq.: 7.0-9.0%- - - 2000-Q1/3 2012: avg. 5.5%

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Market drivers

Continuing low project activity expected

due to prevailing over-capacities in

developed world low capacity

utilization rates, thus limited capex by

steel/stainless steel producers

Growing middle-class in emerging

markets (cars, household appliances)

and increased quality requirements from

end-customer industries as long-term

drivers

Solid development of ANDRITZ’s

furnace business (aluminum, copper,

steel) approx. one third of total sales▲ The new annealing and pickling plant for Zhangjiagang Pohang Stainless Steel, China (annual capacity: 435,000 t of stainless steel strip)

METALSMarket update and outlook


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3.8 3.6

4.8

2.5

5.1 5.25.4

4.3

7.17.5

6.9

5.8 6.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1/32012

2010 etseq.

EBITA margin goal METALS4.0-6.0%


No volume growth expected in the short-term due to weak market environment

Development of automobile market (Schuler)

Expansion of service business rather limited



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Market drivers

Solid growth expected for

special feed production

equipment due to growth

of world population and

limited natural resources

of fish and aquatic fauna

Demand for wood pellets

to be pushed by trend

towards renewable

energies

Higher throughput and increasein energy efficiency: the new

ANDRITZ BioMax pellet mill ►

FEED & BIOFUELMarket update and outlook


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0.8

3.94.8

2.2

7.2

0.8

8.0

9.78.8

7.7

3.0

6.6

5.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1/32012

2010 etseq.

EBITA margin goal FEED & BIOFUEL7.0-8.0%

Influencing factors on margin Focus on increasing profitability of capital business

High share of service/wear parts

Strong competition for biofuel projects



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Contents

Sales of the ANDRITZ GROUP (MEUR)

* Excluding Schuler Group: Consolidation into the ANDRITZ GROUPʼs accounts expected by June 2013 at the latest (depending on approval by anti-trust authorities)

Sales outlook 2012 and 2013

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~0.5-1.0 bn.EUR Schuler*

2012: Sales increase to approx. 5 billion EUR expected, mainly due to processing of the large pulp mill orders received in 2011

2013: first-time consolidation of Schuler


2010 et seq.: 7.0% over the cycle

* Including restructuring expenses

2005-2009: avg. 6.0% 2000-2004: avg. 5.3%

Target to continue long-term profitable growth 7.0% EBITA margin over the cycle

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*

0


Long-term structural trends within all five business areas should support long-term organic growth of ANDRITZ

Acquisitions will remain strategic focus to complement product range and support long-term growth

Cautious view on market development, but still good project activity in all business areas except METALS, which is expected to continue at a moderate level this year

Sales and earnings goals: Sales 2012: ~5.0 bn. EUR Sales 2013: ~5.0 bn. EUR, consolidation of Schuler during 2013 Group’s EBITA margin: goal of 7% over the cycle confirmed

Summary

30 Company presentation January 2013

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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.

Disclaimer


the andritz groupatl.g.andritz.com/c/com2011/00/02/43/24392/1/1/0/-11602729/gr_rs... · 2 1....

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