andritz group capital market days 2011, austria · 2017. 2. 21. · 3 andritz group – wolfgang...

Capital Market Days 2011, AustriaANDRITZ GROUP

2 ANDRITZ GROUP – Wolfgang Leitner – Capital Market Days 2011, Austria

Contents

Major developmentssince last CMD

Summary

Update on acquisitionsCMD goals

Business areas:update on markets


Order intake Q3 2010-Q2 2011Strong increase with all-time high in Q2 2011

Order intake of the ANDRITZ GROUP (MEUR) ▬▬ Trendline

932 896

1,666

1,979

Q3 2010 Q4 2010 Q1 2011 Q2 2011


Sales and EBITA margin Q3 2010-Q2 2011Solid development

7.5

8.5

6.1

7.0

897

1,089

924

1,095

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Q3 2010 Q4 2010 Q1 2011 Q2 20110

200

400

600

800

1,000

1,200

EBITA margin (%) Sales (MEUR)

EBITA margin Q3 2010-Q2 2011: avg. 7.3%


Major orders (HYDRO)

Customer:Norte Energia, Brazil

Scope of supply:Three Francis turbinesand generators, excitation systems, six bulb turbines, and six generators

Start-up:First electricity generationby 2014, completion by2019

Order value:330 MEUR (bookedin Q3 2011)

Belo Monte


Major orders (PULP & PAPER)Eldorado and Montes del Plata

Eldorado

Customer:Eldorado Papel e Celulose, Brazil

Scope of supply:Complete pulp production line, including drying and white liquor plant

Start-up:Q4 2012

Order value:300-350 MEUR (typical order value of comparable projects); booked in Q1 2011

Montes del Plata

Customer:Montes del Plata, Uruguay (joint venture of Stora Enso and Arauco)

Scope of supply:Complete pulp mill, including multi-year maintenance

Start-up:Q1 2013

Order value:700-750 MEUR* (typical order value of compar-able projects); booked in Q2 2011

* Excluding maintenance contract


Major orders (METALS)Walsin and Bahru

Walsin

Customer:Walsin Lihwa Corporation, Taiwan

Scope of supply:Annealing and pickling line for stainless steel strip (hot and cold rolled strip)

Start-up:Q4 2012

Order value:70 MEUR (bookedIn Q4 2010)

Bahru

Customer:Bahru Stainless SHN BHD, Malaysia (joint venture of Acerinox, Spain, and Nisshin Steel, Japan)

Scope of supply:Annealing and pickling line for cold-rolled stainless steel strip

Start-up:Q4 2012

Order value:65 MEUR (booked in Q1 2011)


13,45714,267 14,655

15,856 16,119

June 30,2010

Sept. 30,2010

Dec. 31,2010

March 31,2011

June 30,2011

Market position maintained/further strengthened: A leader in hydro A leader in pulp A leader in stainless steel Improved market position in separation A leader in biomass pelleting

Solid profitability despite unchanged strong pricing pressure: Profitability increase in HYDRO Positive impact from restructuring measures taken

during the financial crisis offsets pricing pressure inPULP & PAPER

Acceptable earnings and margin development inMETALS despite lower sales

Employee growth:Evenly split increase between organic growth and acquisitions; organic growth mostly in HYDRO (temporary construction site workers)

Continuing acquisition strategy:Strengthening of product offerings and expansioninto new fields

Major strategic achievements since last CMD

+20%

Employees fromJune 30, 2010 to June 30, 2011:


Contents


Summary




In 2010/2011, companies with aggregate annual sales of 400 MEUR and 1,500 employees were acquired.

Several acquisitions in 2010/2011: Strengthening of marketposition in HYDRO, PULP & PAPER, and SEPARATION1

1 The ENVIRONMENT & PROCESS business area was renamed ANDRITZ SEPARATION as of October 1, 20112 Acquisition of 33.3% stake

2►

►

►


ANDRITZ Energy & Environment (AE&E)More than 150 years of experience

1 Name since 20082 Founded as ATB Beteiligungs GmbH in 2001, renamed to A-TEC Industries AG in 2004

20112002/201019991991/1992190018541853

AE Energie-technik GmbH

Babcock Borsig-Gruppe

Insolvency of AE Energie-technik (2002) AE&E Austria GmbH & Co KG1

A-TEC Group2

insolvencyin 2010

ANDRITZ Energy & Environment GmbH

ANDRITZ GROUP

AustrianEnergy & Environment SGP/WaagnerBiro GmbH

VA-TECH Group

Aktien-gesellschaftR. Ph. Waagner

Waagner-Biró: Rudolf Philipp Waagneropens an ironmongery business, Anton Birófounds a building locksmith’s shop

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

The best way from A to A


AE&E: Positive business development,integration in line with planned schedule

Business area:PULP & PAPER

Employees:325

Annual sales:~ 250-300 MEUR

Profitability:As planned, still below business area’s profitability; further improvement targeted over the next 2-3 years

Integration:In line with planned schedule; expected to be finalized by end of 2012 ▲ Bubbling fluidized bed boiler, M-real Hallein AG, Austria


AE&E added important technologies

Boilers: Biomass RDF sludge Circulating fluidized

bed technology

Flue gas cleaning: Thermal power

business

Service

Air pollution control technologies for Lauta,

Germany, delivered by AE&E ►


Major orders AE&EVeolia and Donghae

Veolia

Donghae

Customer:OTV, France (Veolia)

Scope of supply:Four bubbling fluidized bed boilers for the world’s largest thermal wastewater sludge treatment plant in Hong Kong, China

Start-up:Q3 2013

Customer:POSCO, South Korea

Scope of supply:The first circulating fluidized bed boiler, fired exclusively with biomass for the Donghaebiomass power plant, South Korea

Start-up:Q2 2013


Business area:PULP & PAPER (Service)

Products and services:Knife systems for pulp wood chipping and saw mills

Synergy:Multiplies ANDRITZ’sexisting knife sales to the pulp industry

Employees:160

Annual sales:25 MEUR

ANDRITZ Iggesund Tools strengthens

▲ TurnKnife system by ANDRITZ Iggesund Tools

and complements PULP & PAPER’s wood processing area


Business area:PULP & PAPER (Service)

Products and services:Systems for drylaid nonwoven production, mainly for textile and hygiene applications

Synergy:With the existing nonwoven expertise of ANDRITZ Küsters and ANDRITZ Perfojet, ANDRITZ is able to supply complete vertical system solutions for production of nonwovens

Employees:200

Annual sales:40 MEUR

ANDRITZ Asselin-Thibeau strengthensnonwoven product portfolio

▲ Filtration line of ANDRITZ Asselin-Thibeau


Contents


Summary




HYDROSolid market environment and strong long-term drivers

H1 2011

Good project activity worldwide: modernization of existing plants in Europe and North America; new hydropower plants mainly in emerging markets; continuing low market activity in China

Good development of order intake in all divisions, including the pumps and turbo generator businesses

Sales and earnings increased compared to reference period of last year

Current environment and mid-/long-term drivers

Change of energy policy towards increased usage of renewable energies may lead to increasing demand for energy storage facilities (pumped storage systems)

Replacement of existing aged installed base in Europe and North America

Growing electricity demand in emerging markets

Climate change – green electricity


PULP & PAPERSolid market, unchanged strong long-term drivers

H1 2011 Good project activity for modernization and capacity increases of

existing pulp mills; continuing pipeline of greenfield pulp mills next order awards expected for 2012/2013

Order intake substantially up compared to H1 2010 mainly due to large order from Montes del Plata

Unchanged strong competition

Current environment and mid-/long-term drivers Long-term build up of greenfield pulp production capacities in South

America to continue during the next years

Expansion of pulp capacities expected in China and Russia (medium-/long-term)

Continuing demand for biomass/recovery boilers due to increasingenvironmental regulations/incentives (e.g. USA, Canada)

Stable project activity for recycled fiber lines and tissue machines


METALSBottom reached, but no strong recovery in sight

H1 2011

Overall low project activity worldwide with no major capex in Europe and North America; reasonable investment activity in Asia and South America

Order intake in H1 2011 up compared to H1 2010, however no strong recovery for full year 2011 expected

Sales, earnings, and profitability at reasonable levels


Continuing low capacity utilization in the stainless steel industry; bottom appears to have been reached

Weak cash flows at customers limit capex for next few quarters

Single investments in special segments (automotive China)


SEPARATIONGood environment for municipal and industrial equipment

H1 2011

Good project activity in municipal business (Europe and China); good demand from industrial customers

Order intake up compared to reference level of last year due to both strong organic market growth and acquisitions

Satisfactory business development


Municipal business: expected to continue at good level

Industrial business: high project activity expected to remain for the coming quarters

Growing environmental awareness and more stringent regulations to support demand for environmental equipment


FEED & BIOFUELSatisfactory market environment for feed and biomass

H1 2011

Good project activity in the animal feed sector, mainly in South America, Asia, and Eastern Europe; continued solid project activity for biomass/wood pelleting equipment, mainly in Europe and North America

Order intake down compared to H1 2010; however, increase in Q2 2011 compared toQ2 2010

Continuing expenditures for biomass expansion


Good pipeline of feed equipment projects

High investment activity in biomass pelleting lines expected to continue


Contents


Summary




Order intake and sales 2006-2010CAGR of actuals pretty in line with long-term goal

2,891

3,750 3,705

3,350

4,132

3,1803,498

3,848

4,233

2006 2007 2008 2009 2010Actual CAGR goal +10%

Order intake (MEUR)

2,710

3,283

3,610

3,198

3,554

2,9813,279

3,607

3,968

2006 2007 2008 2009 2010Actual CAGR goal +10%

Sales (MEUR)CAGR 2006-2010: +9.3% CAGR 2006-2010: +7.0%


CMD 2004: Become a 2.0 bn. EUR company

by 2007 – target reached in 2006

CMD 2005: Reach EBITA margin of 7.0% by 2008 Increase dividend payout ratio to 40% over

the next few years – target reached in 2008

CMD 2006: Increase of sales towards 3.0 bn. EUR

in 2007 – target reached in 2007

CMD 2007: Reach EBITA margin of 7.0% by 2008

CMD 2008: Increase of sales up to 4.5 bn. EUR by 2010/2011 7.0% EBITA margin on a sustainable basis Increase dividend payout ratio to ~ 50% by 2010

Review on goals of past Capital Market DaysAchievement of some targets delayed due to crisis

CMD 2009: Goal to increase sales up to 4.5 bn. EUR

by 2010/2011 delayed due to financial and economic crisis

7.0% EBITA margin over the cycle ( ) Increase dividend payout ratio to ~ 50%

by 2010 Renewable energy sales ≥ 50% of Group

sales

CMD 2010: Increase of sales up to 4.5 bn. EUR

by 2013/2014 7.0% EBITA margin over the cycle ( ) Earnings per share of 4.15 EUR by 2014


937

1,3191,110 1,225

1,4811,744

2,710

3,283

3,610

3,198

3,554

> 4,000

2,012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2011E

Given the strong sales development YTD 2011 and the high order backlog, sales for 2011 most likely to increase to over 4.0 bn. EUR.

Over 4.0 bn. EUR sales for 2011 likelyUpdate on sales goal

Sales of the ANDRITZ GROUP (MEUR)


9371,319

1,110 1,2251,481

1,744

2,710

3,2833,610

3,1983,554

> 4,500

> 4,000

2,012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2011E 2012E

Target to reach more than 4.5 bn. EUR sales in 2012, supported by receipt of some large orders in 2011 (especially Montes del Plata) as well as sales contributions from companies acquired in 2010 and 2011; however, achievement of goals might be negatively impacted by severe macroeconomic slowdown.

Due to extremely high order intake expected for 2011 and given the prevailing uncertainties with regard to the global economy, company growth rates for 2013 and 2014 might be slightly lower than in recent past; however:

Confirmation of goal to increase sales long-term by 10% p.a. on average.

for 2012 targeted due to high order intake 2011Long-term sales growth: Over 4.5 bn. EUR sales

Sales of the ANDRITZ GROUP (MEUR)


2010 et seq.: 7.0% over the cycle

Update on Group EBITA margin goal 7.0% over the cycle

7.2

5.1

6.56.46.16.16.3

5.15.35.24.7

6.6

937

2,012

> 4,500

3,198

3,6103,2832,710

1,7441,481

1,2251,1101,319

3,554> 4,000

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 H1 2011 2011E 2012E0

1,000

2,000

3,000

4,000

5,000

6,000

EBITA margin (%) Sales (MEUR)

*

* Including restructuring expenses

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


EBITA margin goal HYDRO7.0-8.0%

5.9 5.7

7.3 7.3 7.57.5

2006 2007 2008 2009 2010 H1 2011 2010 et seq.

2006*-2009: avg. 6.6%

2010 et seq.: 7.0-8.0%

* Figures before 2006 (VATH was acquired in 2006) are not representative/valid for comparison with today’s HYDRO business area


EBITA margin goal PULP & PAPER6.0-7.0%

5.1

6.15.8

6.1

7.3

6.2

7.3

1.9*

5.86.2 6.0

5.0

6.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2010 etseq.

2010 et seq.: 6.0-7.0%

2005-2009: avg. 5.0%

2000-2004: avg. 6.1%

* Including restructuring expenses


EBITA margin goal METALS4.0-6.0%

3.8 3.6

4.8

2.5

5.1

3.7

5.4

4.3

7.17.5

6.9

5.8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2010 etseq.

2010 et seq.: 4.0-6.0%2005-2009: avg. 6.3%

2000-2004: avg. 4.0%


EBITA margin goal SEPARATION7.0-9.0%

5.3

0.81.4

4.5

5.7

7.67.47.1

5.76.1

3.0

7.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2010 etseq.

2010 et seq.: 7.0-9.0%2005-2009: avg. 6.8%

2000-2004: avg. 3.0%


EBITA margin goal FEED & BIOFUEL7.0-8.0%

0.8

3.94.8

2.2

8.8

0.8

8.0

9.78.8

7.7

3.0

7.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2010 etseq.

2010 et seq.: 7.0-8.0%2005-2009: avg. 7.0%

2000-2004: avg. 2.9%


Update on dividend goalSustainable dividend payout ratio on top of strong sales growth

Confirmation of dividend goals: Keep payout ratio at least at 50% Mid-term increase to ~ 60%

48.9%52.9%40.3%38.3%

32.5%32.6%34.3%44.2%44.1%

2002 2003 2004 2005 2006 2007 2008 2009 2010

1.00 1.101.000.75

0.500.350.250.23

1.70

2002 2003 2004 2005 2006 2007 2008 2009 2010

Dividend per share (EUR)

Payout ratio


4.23

3.693.48

0.450.71

0.51 0.57

1.03

1.53

2.312.61 2.73

1.89

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

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

EPS(EUR)

CAGR 2000-2010: +22.7%CAGR 2000-2012E: +20.5%

Assumptions for 2011E EPS calculation: 4.0 bn. EUR sales, 7% EBITA margin, 30% tax rate, 52 mio. shares Assumptions for 2012E EPS calculation: 4.5 bn. EUR sales, 7% EBITA margin, 30% tax rate, 52 mio. shares

Earnings per share (pro forma)


Contents


Summary




Summary

Market position further strengthened

Strong increase of order intake due to several major orders

Favorable sales development and solid profitability despite unchanged strong pricing pressure

Short-term uncertainties with regard to further development of global economy and/or China; however, long-term marketdrivers still in place to support long-term company growth

Capital Market Days’ goals 2011: Sales for 2011 will most likely increase to over 4.0 bn. EUR Target to reach sales of over 4.5 bn. EUR for 2012 Confirmation of Group’s EBITA margin goal of 7% over the

cycle Dividend: Keep payout ratio at least at 50% and increase

mid-term to ~ 60%

Capital Market Days 2011, AustriaANDRITZ GROUP


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 would be required to do so under applicable law.

According to IFRS.

Disclaimer

andritz group capital market days 2011, austria · 2017. 2. 21. · 3 andritz group – wolfgang...

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