andritz ag company presentation november 2014 · 1,481 1,744 2,710 3,283 3,610 3,198 3,554...

Company presentation November 2014

ANDRITZ GROUP

2. Results Q3/Q1-Q3 2014

1. ANDRITZ GROUP overview

3. Business areas – market update

4. Long-term goals and outlook

FACTS

>> Globally leading supplier of plants, equipment, and services for hydro-

power stations, the pulp and paper industry, the metalworking and steel

industries, and solid/liquid separation in the municipal and industrial

sectors

>> Among the global market leaders in all of its business areas:

HYDRO, PULP & PAPER, METALS, SEPARATION

>> Headquarters: Graz, Austria

>> Global presence: over 250 production sites and service/sales

companies worldwide * MEUR = million euro

The ANDRITZ-GROUP

Overview

KEY FINANCIAL FIGURES 2013

3

Unit 2013

Order intake MEUR* 5,611.0

Order backlog (as of end of period) MEUR 7,388.5

Sales MEUR 5,710.8

EBITA MEUR 164.1

Net income

(including non-controlling interests) MEUR 53.2

EBITA margin % 2.9

Employees

(as of end of period; without apprentices) - 23,713


4

HYDRO

>> Electromechanical

equipment for hydropower

plants: turbines, generators

>> Pumps

>> Turbogenerators

Order intake1): 1,865.4 MEUR

Sales: 1,804.8 MEUR

PULP & PAPER

>> Equipment for production of

all types of pulp, paper,

tissue, and board

>> Energy boilers

Order intake: 1,907.7 MEUR

Sales: 2,005.3 MEUR

METALS

>> Presses for metalforming

>> Systems for production of

stainless steel, carbon

steel, and non-ferrous

metal strip

>> Industrial furnace plants

Order intake: 1,233.8 MEUR

Sales: 1,311.0 MEUR

SEPARATION

>> Equipment for solid/liquid

separation for municipalities

and various industries

>> Systems and equipment for

production of animal feed

and biomass pellets

Order intake: 604.1 MEUR

Sales: 589.7 MEUR

Order Intake:

Sales:

EBITA margin:

Company profile

A world market leader in most business areas

1) Key financial figures 2013

* Average share of ANDRITZ GROUP’s total order intake

30-35%* 25%* 10%* 30-35%*


1,481 1,744

2,710

3,283 3,610

3,198 3,554

4,596

5,177

5,711

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Sales of the ANDRITZ GROUP (MEUR)

Recent acquisitions by business area

2011 AE&E Austria 2011 Iggesund Tools 2011 Tristar Industries 2011 Asselin-Thibeau 2012 AES 2013 MeWa METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div. 2004 Kaiser 2005 Lynson 2008 Maerz 2012 Bricmont 2012 Soutec 2013 Schuler (> 95%) 2013 FBB Engineering SEPARATION 1992 TCW Engineering 1995 Jesma-Matador 1996 Guinard 2000 UMT 2002 3SYS 2004 Bird Machine 2004 NETZSCH Filtration 2004 Fluid Bed Systems 2005 Lenser Filtration 2006 CONTEC Decanter 2009 Delkor Capital Equipment 2009 Frautech 2010 KMPT 2012 Gouda 2013 Shende Machinery

HYDRO 2006 VA TECH HYDRO 2007 Tigép 2008 GE Hydro business 2008 GEHI (JV) 2010 Precision Machine 2010 Hammerfest Strøm (59%) 2010 Ritz 2011 Hemicycle Controls PULP & PAPER 1990 Sprout-Bauer 1992 Durametal 1994 Kone Wood 1998 Kvaerner Hymac 1999 Winberg 2000 Ahlstrom Machinery 2000 Lamb Baling Line 2000 Voith Andritz Tissue LLC (JV) 2002 ABB Drying 2003 IDEAS Simulation 2003 Acutest Oy 2003 Fiedler 2004 EMS (JV) 2005 Cybermetrics 2005 Universal Dynamics Group 2006 Küsters 2006 Carbona 2006 Pilão 2007 Bachofen + Meier 2007 Sindus 2008 Kufferath 2009 Rollteck 2010 Rieter Perfojet 2010 DMT/Biax

Compound Annual Growth Rate (CAGR) of Group sales 2004-2013: +16% p. a. (thereof approx. half organic growth)

Strengthening of market position

Growth through organic expansion and acquisitions

5 Company presentation November 2014

451 427

525 501

414 389

145 147

Q3 2013 Q3 2014

Q1: 1,164

Q1: 1,219

Q2: 1,446

Q2: 1,440

Q3: 1,535

Q3: 1,464

Q1-Q3 2013 Q1-Q3 2014

SALES (MEUR)

* Schuler portion

The Schuler Group was consolidated into the consolidated

financial statements of the ANDRITZ GROUP as of March 1, 2013

109*

265*

258*

282*

4,145 4,123

Q1: +5%

(ex Schuler: -9%)

SALES Q3 2014

by business area

(MEUR)

-1%

(-4% ex

Schuler)

Q2: +/-0%

(ex Schuler: -2%)

Q1-Q3 2014 vs. Q1-Q3 2013:

█ SEPARATION: -3%

█ METALS: +16%

(ex Schuler: +8%)

█ PULP & PAPER: -6%

█ HYDRO: -5%

Group sales: Q1-Q3 2014 slightly below level of last year;

project related sales decline in most business areas in Q3 2014

334* 296*

Q3: -5%

(ex Schuler: -3%)

1,535 1,464

-5%

-5%

-5%

-6%

(ex Schuler: +17%)

+1%


367 351

602 573

424 530

132 138

Q3 2013 Q3 2014

Q1: 1,288

Q1: 1,742

Q2: 1,238

Q2: 1,238

Q3: 1,525

Q3: 1,592

Q1-Q3 2013 Q1-Q3 2014

Group order intake: Q1-Q3 2014 strongly up due to P&P and

METALS; Q3 2014 slightly above good level of last year

ORDER INTAKE (MEUR)

* Schuler portion

The Schuler Group was consolidated into the consolidated

financial statements of the ANDRITZ GROUP as of March 1, 2013

96*

235*

320*

235*

4,051

4,572

Q1: +35%

(ex Schuler: +19%)

ORDER INTAKE

Q3 2014 by

business area

(MEUR)

+13%

(+8% ex

Schuler)

Q3: +4%

(ex Schuler: +3%) Q1-Q3 2014 vs. Q1-Q3 2013:

█ SEPARATION: -1%

█ METALS: +39%

(ex Schuler: +37%)

█ PULP & PAPER: +15%

█ HYDRO: -5%

362*

327*

Q2: +/-0%

(ex Schuler: +/-0%)

1,525 1,592

+4%

-4%

-5%

+25%

(ex Schuler: +74%)

+4%


57% 43%

Order intake and sales by region

Well-balanced geographical exposure

ORDER INTAKE Q1-Q3 2014 by region (Q1-Q3 2013)

4,572 MEUR

E m e r g i n g m a r k e t s a n d O t h e r s E u r o p e a n d N o r t h A m e r i c a

South America: 15% (12%) >>

China: 14% (12%) >>

Asia (without China): 9% (14%) >>

Others*: 5% (4%) >>

<< Europe: 38% (42%)

<< North America: 19% (16%)

58% 42%

SALES Q1-Q3 2014 by region (Q1-Q3 2013)

4,123 MEUR

South America: 15% (14%) >>

China: 14% (12%) >>

Asia (without China): 10% (11%) >>

Others*: 3% (4%) >>

<< Europe: 41% (43%)

<< North America: 17% (16%)

E m e r g i n g m a r k e t s a n d O t h e r s E u r o p e a n d N o r t h A m e r i c a


* Africa and Australia

3,638 3,575

1,956 2,102

1,500 1,631

371 394

Sept. 30 2013 Sept. 30 20142011 2012 Sept. 302013

2013 Sept. 302014

ORDER BACKLOG

Sept. 30, 2014

by business area

(MEUR)

ORDER BACKLOG* (MEUR)

** Schuler portion

* As of end of period. The Schuler Group was consolidated into the consoli-

dated financial statements of the ANDRITZ GROUP as of March 1, 2013

1,088**

Order backlog

Solid workload in all business areas

+4%

1,040** 1,121**

+3%

(+3% ex

Schuler)

Q1-Q3 2014 vs. Q1-Q3 2013:

█ SEPARATION

█ METALS

█ PULP & PAPER

█ HYDRO

6,683 6,615

7,465 7,389 7,702 7,465 7,702

+3%

+9%

(ex Schuler: +24%)

+7%

-2%

+6%


Q1: 14.2

Q1: 48.6

Q2: 82.7

Q2: 84.8

Q3: 70.1

Q3: 101.0

Q1-Q3 2013 Q1-Q3 2014

Satisfactory development of EBITA margin

SEPARATION slightly improved

5.7%

GROUP EBITA MARGIN

4.6%

Q3 2013

6.9% 4.0%

Q1-Q3

2013

Q3 2014 Q1-Q3

2014

EBITA (MEUR)

Q3 2014

>> EBITA, at 101.0 MEUR, increased by 44% compared to Q3 2013 (70.1 MEUR)

due to PULP & PAPER and SEPARATION recovering strongly from last year’s

very low levels

>> EBITA margin, at 6.9%, (Q3 2013: 4.6%): satisfactory levels at METALS and

HYDRO; PULP & PAPER still impacted by some lower margin orders;

SEPARATION improvement underway

Q1-Q3 2014

EBITA and margin considerably higher compared to low level of last yearʼs reference

period, which was negatively impacted by cost overruns in PULP & PAPER and

unsatisfactory earnings in SEPARATION

167.0

234.4 +40%

Q3:

+44%

Q2:

+3%

Q1:

+242%


The Schuler Group was consolidated into

the consolidated financial statements of

the ANDRITZ GROUP as of March 1, 2013

Unit Q1-Q3

2014

Q1-Q3

2013 +/- Q3 2014 Q3 2013 +/- 2013

Order intake MEUR 4,571.6 4,051.3 +12.8% 1,591.5 1,525.3 +4.3% 5,611.0

Order backlog (as of end of period) MEUR 7,702.2 7,464.5 +3.2% 7,702.2 7,464.5 +3.2% 7,388.5

Sales MEUR 4,122.9 4,144.6 -0.5% 1,463.5 1,534.5 -4.6% 5,710.8

EBITDA MEUR 298.9 229.3 +30.4% 123.2 93.3 +32.0% 255.2

EBITA MEUR 234.4 167.0 +40.4% 101.0 70.1 +44.1% 164.1

EBIT MEUR 176.0 116.2 +51.5% 81.6 50.3 +62.2% 89.8

EBT MEUR 174.3 110.8 +57.3% 81.6 48.0 +70.0% 80.3

Financial result MEUR -1.7 -5.4 +68.5% 0.0 -2.3 +100.0% -9.5

Net income (including non-controlling interests) MEUR 122.0 77.6 +57.2% 57.1 32.8 +74.1% 53.2

Cash flow from operating activities MEUR 225.6 -81.1 +378.2% 176.6 5.4 +3,170.4% 93.7

Capital expenditure MEUR 61.9 65.5 -5.5% 27.4 21.1 +29.9% 111.4

Equity ratio % 16.9 18.0 - 16.9 18.0 - 16.7

Liquidity MEUR 1,666.6 1,410.9 +18.1% 1,666.6 1,410.9 +18.1% 1,517.0

Net liquidity (after deduction of all financial liabilities) MEUR 1,013.8 782.3 +29.6% 1,013.8 782.3 +29.6% 893.1

Net working capital MEUR -607.0 -435.6 -39.3% -607.0 -435.6 -39.3% -539.4

EBITDA margin % 7.2 5.5 - 8.4 6.1 - 4.5

EBITA margin % 5.7 4.0 - 6.9 4.6 - 2.9

EBIT margin % 4.3 2.8 - 5.6 3.3 - 1.6

Employees (as of end of period; without apprentices) - 24,468 23,939 +2.2% 24,468 23,939 +2.2% 23,713

Key figures Q3/Q1-Q3 2014 at a glance

Strong cash flow generation and low net working capital

The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013


HYDRO

Reasonable project activity…

MODERNIZATIONS/REHABILITATIONS

Reasonable – although clearly below

peak years – project activity in Europe

and North America

NEW HYDROPOWER PLANTS

Some projects in emerging markets in

implementation or planning phase

(particularly in South America and Africa)

COMPETITION

No major changes experienced during

reporting period

PUMPS

Solid project and investment activity

ANDRITZ HYDRO Hammerfest has received an order from

MeyGen Ltd. to supply three 1.5-megawatt tidal current turbines.

This is the first order worldwide for the commercial use of such

turbines.


HYDRO Unit Q1-Q3

2014

Q1-Q3

2013 +/- Q3 2014 Q3 2013 +/- 2013

Order intake MEUR 1,166.0 1,221.6 -4.6% 351.4 367.3 -4.3% 1,865.4

Order backlog (as of end of period) MEUR 3,575.5 3,637.4 -1.7% 3,575.5 3,637.4 -1.7% 3,722.4

Sales MEUR 1,232.2 1,301.5 -5.3% 426.8 450.9 -5.3% 1,804.8

EBITDA MEUR 114.5 121.2 -5.5% 42.8 44.9 -4.7% 176.8

EBITDA margin % 9.3 9.3 - 10.0 10.0 - 9.8

EBITA MEUR 91.7 99.3 -7.7% 34.9 38.0 -8.2% 146.9

EBITA margin % 7.4 7.6 - 8.2 8.4 - 8.1


… and stable business development

1 2 ORDER INTAKE in Q3 2014 slightly below

the level of Q3 2013 POC-related decline in SALES

3

1

3 EARNINGS and MARGINS at

unchanged solid levels

2


PULP & PAPER

Good project and investment activity …

MODERNIZATIONS/GREENFIELD

Good project and investment activity for modernizations and refurbishments; next

green-/brownfield pulp mills in South America and Europe expected during H1 2015

BIOMASS/RECOVERY BOILERS

Good investment activity

COMPETITION

Unchanged challenging price competition

TISSUE

Solid demand,

especially in China

Photo: Montes del Plata

Pulp mill Montes del Plata, Uruguay


PULP & PAPER Unit Q1-Q3

2014

Q1-Q3

2013 +/- Q3 2014 Q3 2013 +/- 2013

Order intake MEUR 1,629.6 1,417.3 +15.0% 572.4 602.3 -5.0% 1,907.7


Sales MEUR 1,369.9 1,456.7 -6.0% 500.6 524.5 -4.6% 2,005.3

EBITDA MEUR 85.5 8.2 +942.7% 35.7 -1.8 +2,083.3% -11.5

EBITDA margin % 6.2 0.6 - 7.1 -0.3 - -0.6

EBITA MEUR 66.9 -9.2 +827.2% 29.1 -7.7 +477.9% -35.7

EBITA margin % 4.9 -0.6 - 5.8 -1.5 - -1.8


… and earnings recovery from low levels

3

1

1 2 ORDER INTAKE in Q3 2014 almost

reached very high level of Q3 2013

Decline in SALES due to strong sales

contribution of a pulp mill project in

Q3 2013

3 Recovery of EARNINGS and MARGIN in Q3 2014 compared to very

low level of last year; good development of profitability in service,

capital still impacted by execution of some lower margin orders

2


METALS

Overall good project activity …

METALFORMING

Good project activity,

especially in China;

satisfactory level in

Europe

STAINLESS STEEL

Unchanged low

project activity,

however some

selective investments

in emerging markets

COMPETITION

No major changes

experienced during

reporting period

ALUMINUM

Very good project

activity

Major order from FAW Volkswagen in China for three servo press lines and three

tryout presses


METALS Unit Q1-Q3

2014

Q1-Q3

2013 +/- Q3 2014 Q3 2013 +/- 2013

Order intake MEUR 1,328.1 958.3 +38.6% 530.2 423.8 +25.1% 1,233.8


Sales MEUR 1,111.8 962.9 +15.5% 389.5 413.7 -5.8% 1,311.0

EBITDA MEUR 87.0 90.2 -3.5% 36.8 45.1 -18.4% 76.6

EBITDA margin % 7.8 9.4 - 9.4 10.9 - 5.8

EBITA MEUR 69.8 74.7 -6.6% 31.1 37.4 -16.8% 53.5

EBITA margin % 6.3 7.8 - 8.0 9.0 - 4.1

Employees (as of end of period; without apprentices) - 6,202 6,309 -1.7% 6,202 6,309 -1.7% 6,300

… and solid business development

1

2 ORDER INTAKE in Q3 2014 favorably up

(+25% vs. Q3 2013); ex Schuler, substantial

increase by 74% mainly due to the receipt of

some selective larger orders for aluminum

strip processing equipment

Decline in SALES in Q3 2014

3 Good MARGIN, although below very high

reference level of last year which was

impacted by positive one-offs

3

1

2

The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013 and is allocated to the METALS

business area


ENVIRONMENT

Solid investment activity by municipalities

FOOD

Satisfactory project activity

SEPARATION

Mixed development of project and investment activity …

MINING AND MINERALS

Unchanged low project activity

FEED AND BIOMASS PELLETING

Good project activity

CHEMICALS

Slight decrease in project activity

compared to the previous quarter

New low-profile belt press: significant reduction in investment costs combined

with further decrease in operating costs


SEPARATION Unit Q1-Q3

2014

Q1-Q3

2013 +/- Q3 2014 Q3 2013 +/- 2013

Order intake MEUR 447.9 454.1 -1.4% 137.5 131.9 +4.2% 604.1

Order backlog (as of end of period) MEUR 393.6 370.8 +6.1% 393.6 370.8 +6.1% 352.9

Sales MEUR 409.0 423.5 -3.4% 146.6 145.4 +0.8% 589.7

EBITDA MEUR 11.9 9.7 +22.7% 7.9 5.0 +58.0% 13.3

EBITDA margin % 2.9 2.3 - 5.4 3.4 - 2.3

EBITA MEUR 6.0 2.2 +172.7% 5.9 2.4 +145.8% -0.6

EBITA margin % 1.5 0.5 - 4.0 1.7 - -0.1


… and earnings and margin recovery

3

1

2

1

3

ORDER INTAKE in Q3 2014 slightly

up compared to Q3 2013

Jump in EARNINGS and MARGIN in Q3 2014

compared to the very low level of Q3 2013

SALES in Q3 2014 at level of last

year’s reference period 2


22

HYDRO

Challenging, but solid market environment

Long-term

average growth

potential:

3-4% p.a.

Large-scale plants Small-scale plants Pumps

Market

update

>> Solid demand for modernizations

>> Pumped storage projects on hold due to low

electricity prices

>> Greenfield hydropower projects in emerging

markets (Africa, South America)

Good activity to continue, especially in

emerging markets (high energy demand,

low capex needs)

Demand for special pumps

to remain high (irrigation,

water transport, nuclear,

etc.)

Competition Increasing price competition on selective projects. Main competitors: GE/Alstom, Voith

Outlook Stable +


Units over 30 years old

(in % of installed capacity in operation)

74

29

80

29

38

71

23

Favorable modernization potential: more than half of

hydropower capacity installed worldwide over 30 years old

Installed hydropower capacity 2013

by region in %

█ Europe

█ China

█ North/Central America

█ Asia (without China)

█ South America

█ Africa

26

26 19

14

12 3

1,076 GW

Europe

China

North/Central America

Asia

South America

Africa

Sources: GlobalData, Hydropower &

Dams World Atlas, 2013

Average

55%


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E

CAGR 2013-2025E

■ China +6%

■ Africa +5%

■ South America +4%

■ Asia (without China) +3%

■ North/Central America +2%

■ Europe +1%

Cumulative installed hydropower capacity in GW (I)

Average annual growth of 3.5% expected for 2013-2025

24

Source: GlobalData

729 738 752 773 797 822 845 877 908 939 976

1,012 1,043

1,076 1,107 1,149

1,196 1,243

1,291 1,335

1,384 1,431

1,479 1,528

1,579 1,630

+3.0%


25

PULP & PAPER

Good project activity, but fierce competition

Pulp Paper/packaging Nonwoven/plastic film Service

Market

update

>> Investments in greenfield pulp mills to

continue

>> Modernization projects to increase

capacity, efficiency, and profitability of

existing mills

>> Green energy investments

>> Some selective biomass pelleting projects

>> Stable demand for tissue and

containerboard machines,

predominantly in emerging

markets

>> More stringent quality

requirements for food

packaging

>> Stable and good

project activity

for nonwoven

>> Good potential in

certain niches

>> Plastic film:

sharp market

decline due to

overcapacity

Good potential

to grow organi-

cally and by

acquisitions

Competition Unchanged stiff price competition. Main pulp competitor: Valmet

Outlook

Long-term

average growth

potential:

2-3% p.a.

Stable + Stable +/- Stable +/-


Average technical age

of BHKP mills by region

25

34

16

19

11

24

26

Average technical age structure of pulp mills by region


Source: RISI, Pöyry (2014-10-01)

Europe

North America

Asia (excl. China)

LatAm

Africa

Average technical age

of BSKP mills by region

Europe

25

32

17

7

30

Europe

North America

Asia (excl. China)

LatAm

China

█ Europe

█ China

█ North America

█ Asia (excl. China)

█ Latin America

█ Africa

24%

23%

22%

21%

9% 1%

474 million tons per year

Pulp capacity

by region 2014 in %

China


Source: Pöyry (2014-10-30)

Despite new capacities built, CAGR of total capacity

was only 0.9% since 2000

Development of net global chemical pulp production capacity (market pulp + integrated pulp)

-285 1,282 954 2,532 1,158 1,318 3,445 291 42 1,630 1,750 2,394 -1,000 2,712

132,510 133,792 134,746 137,278 138,436 139,754 143,199 143,490 143,532 145,196 146,826 149,220 148,220 150,932

Total capacity 2014:

150,932 ktons/a

Total capacity 2000:

132,795 ktons/a

-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ktons/a

Chemical pulp

production capacity:

Total ktons

+/- ktons

28

Low cash costs of hardwood pulp production

especially in South America…


308 268 283

298

380

297

424 404

485

560

Russia Chile Brazil Uruguay USA Indonesia Sweden Finland China Japan

Hardwood (BHKP) market pulp – cash cost comparison by country (in USD per ton)

343 287

391

455 501 486 472

552

Russia Chile USA Canada Sweden China Finland Japan

Softwood (BSKP) market pulp – cash cost comparison by country (in USD per ton)

Source: RISI

Mozambique: Chile:

Owner – project Capacity/a.* Planned start-up

Arauco – Bio-Bio 1.6 2018 et seq.

29

…lead to good project activity

* Annual capacity in million tons; source: Pöyry. Capacity/year refers to added gross capacity (i.e. relevant as accessible market) without taking possible shut-downs of existing capacities into account

Brazil:


Eldorado – Três Lagoas 2.3 2017 et seq.

Fibria – Três Lagoas 1.8 2017 et seq.

Veracel – Eunápolis 2.0 2018 et seq.

Braxel – Peixes 1.5 2018 et seq.

Eco Brasil Florestas – Tocantins 1.5 2018 et seq.

Mato Grosso do Sul – Ribas do Rio Pardo 1.8 2018 et seq.

Suzano – Imperatriz 1.3 2018 et seq.

Fibria – Aracruz 1.7 2018 et seq.

Owner Capacity/a.* Planned start-up

Portucel 1.5 2020 et seq.

Finland:


Metsä Group – Äänekoski 1.3 2017 et seq.

China:

Owner – project Capacity/a* Planned start-up

Guangxi Jingui – Qinzhou City 1.2 2018 et seq.


30

METALS: good project activity in metalforming, aluminum,

and furnaces – unchanged low activity in carbon/stainless steel

Long-term

average

growth

potential

2-3% p.a.

Metalforming Stainless steel Furnaces

Market

update

>> Good demand from automobile manufacturers

continuing, especially in Asia and Americas

>> Stable demand from other industries

Investment activity to remain at low

level, some investment projects

planned in Q4 2014/H1 2015

Good demand

to continue

Competition

Stable competition at challenging level

Main competitors from Japan and China Main competitors: Danieli, SMS, Mitsubishi/VAI

Outlook

Long-term

average growth

potential:

4-5% p.a.

Stable + Stable - Stable +


2011 2012 2013 2014E 2015E 2016E 2017E 2018E

Long-term growth of automobile production

to support growth of Schuler

31

Source: IHS Global Insight

77 82 83 87 92 97 100 103

Global production volume in million car units (CAGR global 2013-2018E: +4%)

Share in production volume 2013

CAGR 2013-2018E

█ Europe 22% +4%

█ Greater China 25% +7%

█ Japan/Korea 16% -1%

█ Middle East/Africa 2% +6%

█ North America 20% +2%

█ South America 5% +6%

█ South Asia 10% +8%


32

SEPARATION

Varied project activity in different markets

Municipal Industrial Feed Biomass pelleting

Market

update

Investment activity at reasonable

levels, mainly in developed markets

>> Reasonable demand in

food processing

>> Low project activity in

mining/minerals and

chemicals

Continuing at solid level Stable demand to

continue

Competition Very fragmented market with global and regional competitors

Outlook

Long-term

average growth

potential:

2-3% p.a.

Stable - Stable +/- Stable + Stable +


4.7

5.2 5.3 5.1

6.3 6.1 6.1

6.4 6.5

5.1*

7.2 7.2 6.9

2.9**

937

1,319 1,110 1,225

1,481 1,744

2,710

3,283 3,610

3,198

3,554

4,596

5,177

5,711**

0

1,000

2,000

3,000

4,000

5,000

6,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E

EBITA margin (%) Sales (MEUR)

* Including restructuring expenses ** Including Schuler as of March 1, 2013; no pro forma figures are available for the reference periods of previous years

Target to continue long-term profitable growth

Goal: maintain 7% and improve to 8% with top-line sales growth

34

%

MEUR

Long term:

maintain 7%

and improve to

8% with top-line

sales growth

Average

2005-2009:

6.0% Average

2000-2004:

5.3%


Outlook for remainder of 2014

Investment activity to remain at current levels

HYDRO

Good project activity for modernizations

and new hydropower stations to

continue; good market activity for

pumps to continue

METALS

Global metalforming market to stay

at good level; steel at unchanged

subdued level; good market activity

in aluminum to continue

SEPARATION

Low project activity in mining to remain;

solid project activity in chemicals; good

investment activity in environment, food,

and feed/biomass pelleting

stable +

ANDRITZ GROUP

>> Slight increase in sales due to Schuler consolidation effect (contribution of additional two months in 2014)

>> Significant improvement of net income targeted

stable +

stable + stable +/-

Company presentation November 2014 35

PULP & PAPER

Solid project activity for modernizations/

capacity increases and power/biomass boilers; good

pipeline for green-/brownfield pulp mill projects

order awards expected during H1 2015

Financials

Appendix:

3,349

4,132

5,707

4,924 5,611

2009 2010 2011 2012 2013

5.1

7.2 7.2 6.9

2.9

2009 2010 2011 2012 2013

ANDRITZ GROUP

Sales, order intake, EBITA, and EBITA margin 2009-2013

3,198 3,554

4,596 5,177

5,711

2009 2010 2011 2012 2013

Sales (in MEUR): CAGR +16%

37

Order intake (in MEUR): CAGR +14%

EBITA (in MEUR)

EBITA margin (in %)

Average

4,447 MEUR

Average

4,745 MEUR

Average

255 MEUR

Average

5.9%

164.1

257.6

331.5 357.8

164.1

2009 2010 2011 2012 2013


HYDRO


1,378 1,579

1,773 1,837 1,805

2009 2010 2011 2012 2013


1,694 1,870

2,096 2,008 1,865

2009 2010 2011 2012 2013

38

100.5 118.0

147.7 153.2 146.9

2009 2010 2011 2012 2013


EBITA (in MEUR)

EBITA margin (in %)

Average

1,674 MEUR

Average

1,907 MEUR

Average

133 MEUR

Average

7.9%

7.3 7.5 8.3 8.3 8.1

2009 2010 2011 2012 2013


1.9

7.3 6.4

5.9

-1.8

2009 2010 2011 2012 2013

PULP & PAPER


926 1,130

1,885

2,282 2,005

2009 2010 2011 2012 2013


940

1,416

2,694

1,962 1,908

2009 2010 2011 2012 2013

39

17.2

82.2

120.4 134.6

-35.7

2009 2010 2011 2012 2013


EBITA (in MEUR)

EBITA margin (in %)

2013

2013

Average

1,646 MEUR

Average

1,784 MEUR

Average

64 MEUR

Average

3.9%


4.3

5.4 5.2

6.2

4.1*

2009 2010 2011 2012 2013

METALS


473 340 373 405

1,311

2009 2010 2011 2012 2013

Sales (in MEUR): CAGR +29%*

296 303 319 324

1,234

2009 2010 2011 2012 2013

40

20.5 18.4 19.4 25.1

53.5

2009 2010 2011 2012 2013

Order intake (in MEUR): CAGR +43%*

EBITA (in MEUR)

EBITA margin (in %)

* -8% ex Schuler

* +5% ex Schuler

Average

ex Schuler:

387 MEUR

Schule

r: 9

67

S

chule

r: 8

68

Schule

r: 4

0.0

* Schuler: 4.1% (8.4% before restructuring expenses)

Average

ex Schuler:

321 MEUR

Average

ex Schuler:

19.4 MEUR

Average

ex Schuler:

5.0%


Average

5.7%

6.2

7.7 7.8 6.9

-0.1

2009 2010 2011 2012 2013

SEPARATION


421 505

566 653

590

2009 2010 2011 2012 2013


419

544 598 629 604

2009 2010 2011 2012 2013

41

25.9

39.0 44.0 44.9

-0.6

2009 2010 2011 2012 2013


EBITA (in MEUR)

EBITA margin (in %)

Average

547 MEUR

Average

559 MEUR

Average

31 MEUR


andritz ag company presentation november 2014 · 1,481 1,744 2,710 3,283 3,610 3,198 3,554...

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