the andritz groupatl.g.andritz.com/c/com2011/00/02/47/24776/1/1/0/721652405/gr-rs... ·...

Company presentation March 2013The ANDRITZ GROUP

2 Company presentation March 2013

Contents

ANDRITZ GROUP overview

Results 2012

Long-term goals and outlook

HYDRO40-45%*

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

3

* 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

Company presentation March 2013

4

Sales of the ANDRITZ GROUP (MEUR)

1.2251.481

1.744

2.7103.283

3.6103.198

3.554

4.5965.177

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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 Strojarne2013 Shende

HYDRO2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (59%)2010 Ritz2011 Hemicycle Controls

METALS1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz2012 Bricmont2012 Soutec2013 Schuler (> 90%)

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


5

Strong net cash positionStable development despite acquisitions

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

77 103 55220

384 366247

409678

1,1771,401

1,286

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Net liquidity as of end of period (MEUR)

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 (59%)

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


Foto

: BM

W A

G/M

artin

Klin

dtw

orth


Contents


Results 2012


7

2012 2011 +/-

Order intake: solid level – however, below very high figure of 2011 which included three large orders (totaling ~1,400 MEUR) 4,924 MEUR 5,707 MEUR -14%

Order backlog: unchanged high level 6,615 MEUR 6,683 MEUR -1%

Sales: strong increase, mainly driven by PULP & PAPER 5,177 MEUR 4,596 MEUR +13%

EBITA: increase not fully matches sales growth due to PULP & PAPER and SEPARATION; thus, EBITA margin slightly below last year EBITA: EBITA margin:

358 MEUR 6.9%

332 MEUR 7.2%

+8%-

Dividend: proposal to increase to 1.20 EUR/share (payout ratio: ~51%) 1.20 EUR/share 1.10 EUR/share +9%

Balance sheet as of end of 2012

Equity ratio: unchanged at 20% level 20.0% (end of 2011: 20.6%)

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

Net working capital: stable at solid level -632 MEUR (end of 2011: -639 MEUR)

Key figures 2012 at a glance


4,5965,177

2011 2012

8

2012

PULP & PAPER: +21%

FEED & BIOFUEL: +27%

SEPARATION: +12%

METALS: +9%

HYDRO: +4%

+13%

Group sales (MEUR) Sales by business areas 2012 vs. 2011

Favorable development of salesIncrease in all business areas – PULP & PAPER very strong


5,7074,924

2011 2012

9

2012

PULP & PAPER: -27%

FEED & BIOFUEL: +1%

SEPARATION: +7%METALS: +2%

HYDRO: -4%

Group order intake (MEUR) Order intake by business areas 2012 vs. 2011

Large orders2011: ~1,400 MEUR*

-14%

* Two large PULP & PAPER orders (totaling ~1,100 MEUR) and one large HYDRO order (~300 MEUR)

~620 MEUR


Solid order intake ‒ however, decline comparedto extraordinarily high reference figure of last year

10

Sales 2012 2011

Europe 37% 38%

North America 14% 13%

South America 23% 21%

Asia (without China) 13% 12%

China 9% 12%

Others 4% 4%

Order intake and sales by regionWell-balanced geographical exposure

Order intake 2012 2011

Europe 43% 34%

North America 15% 14%

South America 12% 32%

Asia (without China) 13% 9%

China 10% 7%

Others 7% 4%

Europe + North America: 51% Emerging markets: 45% Others: 4%

Europe + North America: 58% Emerging markets: 35% Others: 7% (mostly Africa/HYDRO orders)


5,291

6,683 6,615

4,277 4,435

2008 2009 2010 2011 2012

11

Group order backlog as of end of period (MEUR)

2012

PULP & PAPER: -10%

FEED & BIOFUEL: -32%

SEPARATION: +3%METALS: -3%

HYDRO: +5%

Order backlog by business areas 2012 vs. 2011

Order backlog unchanged at high level

-1%


332 358

2011 2012

12

7.2 6.9

2011 2012

EBITA, at 358 MEUR, rose by 8% versus 2011 (332 MEUR), thus not fully matching sales growth

EBITA margin, at 6.9%, slightly down due to PULP & PAPER (execution of large orders) as well as SEPARATION and FEED & BIOFUEL (cost overruns on some projects and service expansion in emerging markets); solid development of other business areas

EBITA (MEUR) EBITA margin (%)

Satisfactory earnings developmentEBITA margin, however, slightly down

+8%


13

Key figures 2012 at a glanceSatisfactory business development

Financial result:Decrease due to write-down of some non-consolidated companies and expenses related to bond issue in July 2012 (interest rate swap, one-off cost for bond issue)

Unit 2012 2011 +/-Order intake MEUR 4,924.4 5,706.9 -13.7%Order backlog (as of end of period) MEUR 6,614.8 6,683.1 -1.0%Sales MEUR 5,176.9 4,596.0 +12.6%EBITDA MEUR 418.6 386.2 +8.4%EBITA MEUR 357.8 331.5 +7.9%EBIT MEUR 334.5 312.7 +7.0%EBT MEUR 331.6 321.7 +3.1%Financial result MEUR -2.8 9.0 -131.1%Net income (including non-controlling interests) MEUR 242.2 231.5 +4.6%Cash flow from operating activities MEUR 346.5 433.8 -20.1%Capital expenditure MEUR 109.1 77.0 +41.7%EBITDA margin % 8.1 8.4 -EBITA margin % 6.9 7.2 -EBIT margin % 6.5 6.8 -Employees (as of end of period) - 17,865 16,750 +6.7%


14

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

44.1 44.2 34.3 32.6 32.5 38.3 40.352.9 48.9 49.0 50.8

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0.11 0.13 0.18 0.25 0.38 0.50 0.55 0.500.85

1.10 1.20

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dividend per share (EUR)

Payout ratio (%)

*

* Proposal to AGM

Dividend increase proposedPayout ratio up to 50.8%


15

HYDROSolid business development

Satisfactory market conditions: Despite slightly decreasing market volume compared to previous record years, unchanged good project

activity for modernization/rehabilitation of existing hydropower plants and for pumped storage power stations in Europe and North America

Solid investment activity for new hydropower plants in emerging markets Satisfactory investment activity for small-scale hydropower plants and pumps

Order intake almost reaches record figure of last year which included the Belo Monte order (~330 MEUR)

Sales up, reaching record high; earnings increased in line with sales, thus margin unchangedUnit 2012 2011 +/-

Order intake MEUR 2,008.4 2,096.2 -4.2%Order backlog (as of end of period) MEUR 3,842.3 3,671.4 +4.7%Sales MEUR 1,836.8 1,772.9 +3.6%EBITDA MEUR 182.4 174.3 +4.6%EBITDA margin % 9.9 9.8 -EBITA MEUR 153.2 147.7 +3.7%EBITA margin % 8.3 8.3 -Employees (as of end of period) - 7,469 7,285 +2.5%


16

PULP & PAPERSatisfactory market conditions

Good market conditions: In spite of unfavorable macroeconomic environment, unchanged good project activity for pulp mill

modernizations/capacity increases (mainly for small- and medium-sized projects); only a few large projects awarded

Favorable investment activity for biomass/recovery boilers

Order intake declined significantly compared to last yearʼs reference figure which included two large greenfield orders (totaling ~1,100 MEUR)

Sharp rise in sales, mainly driven by execution of the two large greenfield orders; earnings, however, not fully matched sales growth due to processing of the two orders

Unit 2012 2011* +/-

Order intake MEUR 1.962.4 2,694.1 -27.2%Order backlog (as of end of period) MEUR 2,018.1 2,230.0 -9.5%Sales MEUR 2,282.2 1,884.9 +21.1%EBITDA MEUR 156.2 138.1 +13.1%EBITDA margin % 6.8 7.3 -EBITA MEUR 134.6 120.4 +11.8%EBITA margin % 5.9 6.4 -Employees (as of end of period) - 6,774 6,208 +9.1%

* In 2012, there was a minor product shift from the SEPARATION to the PULP & PAPER business area. Comparison figures for 2011 have been adjusted.


17

SEPARATIONFavorable market environment

Good market conditions: Unchanged good market conditions for solid/liquid separation equipment for municipalities Good demand for industrial separation equipment, especially for food and chemicals

Order intake increased

Sales significantly up; earnings and margin down due to cost overruns at some projects and expenses for expansion of service business

Unit 2012 2011* +/-

Order intake MEUR 468.2 438.8 +6.7%Order backlog (as of end of period) MEUR 258.0 250.8 +2.9%Sales MEUR 468.0 419.9 +11.5%EBITDA MEUR 39.3 42.7 -8.0%EBITDA margin % 8.4 10.2 -EBITA MEUR 34.7 36.7 -5.4%EBITA margin % 7.4 8.7 -Employees (as of end of period) - 1,915 1,752 +9.3%

* In 2012, there was a minor product shift from the SEPARATION to the PULP & PAPER business area. Comparison figures for 2011 have been adjusted.


18

METALSGood business development despite weak market conditions

Market conditions remained weak: only selective project activity due to ongoing overcapacities in the steel/stainless steel production and related limited capex; satisfactory project activity for industrial furnaces

Slight increase in order intake, reaching reasonable level despite weak market environment

Earnings positively influenced by completion of some long-term orders

Unit 2012 2011 +/-

Order intake MEUR 324.2 318.6 +1.8%Order backlog (as of end of period) MEUR 451.4 465.1 -2.9%Sales MEUR 404.7 372.7 +8.6%EBITDA MEUR 28.0 21.5 +30.2%EBITDA margin % 6.9 5.8 -EBITA MEUR 25.1 19.4 +29.4%EBITA margin % 6.2 5.2 -Employees (as of end of period) - 1,129 945 +19.5%


19

Status acquisition of Schuler AG

ANDRITZ owns more than 90% in Schuler

First-time consolidation from March 1, 2013

Schuler completes ANDRITZʼ entry in automotive supplier industry thatstarted with acquisition of Kaiser nineyears ago

An automation robotconveys a car body partfrom one press to the next within a press line ►


836

1,006

591

818

1,319 1,301

725

966823

650

959

1,22610.3

6.7

-0.4

4.6

8.8 9.6

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

200

400

600

800

1,000

1,200

1,400

2006/07** 2007/08 2008/09 2009/10 2010/11 2011/12

Order intake (MEUR) Sales (MEUR) EBITDA margin (%)

* As of September 30, 2012 ** Including Müller Weingarten Group April 1-September 30

20

Consolidation in ANDRITZ Group accounts from March 1, 2013

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

~5,500 employees* 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

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


21

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


22

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

23

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


24

FEED & BIOFUELSolid project activity

Satisfactory market conditions: Solid project activity in the animal, aquatic, and pet food industries, focusing on Central and South

America, Asia, and Eastern Europe; particularly the special feed area showed favorable project activity Satisfactory investment activity for biomass/wood pelleting equipment in all regions

Order intake slightly up

Sharp rise in sales; earnings still impacted by cost overruns on some large projects

Unit 2012 2011 +/-

Order intake MEUR 161.2 159.2 +1.3%Order backlog (as of end of period) MEUR 45.0 65.8 -31.6%Sales MEUR 185.2 145.6 +27.2%EBITDA MEUR 12.7 9.6 +32.3%EBITDA margin % 6.9 6.6 -EBITA MEUR 10.2 7.3 +39.7%EBITA margin % 5.5 5.0 -Employees (as of end of period) - 578 560 +3.2%



Contents


Results 2012


4.75.2 5.3 5.1

6.3 6.1 6.1 6.4 6.5

5.1

7.2 7.2 6.9

9371,319 1,110 1,225

1,4811,744

2,7103,283 3,610

3,198

3,554

4,5965,177

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 2013E 2014E

EBITA margin (%) Sales (MEUR)

*

0

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


27

Outlook 2013

Expectations for the Group Increase in sales compared to 2012 with substantial contribution from first-time consolidation of Schuler

(from March 1, 2013) Net income also expected to rise

Expectations for the business areasHYDRO Solid project activity for modernizations and new hydropower stations to continue

PULP & PAPER Good project activity for modernizations/capacity increases as well as for power/biomass boilers; solid pipeline of greenfield pulp mills

SEPARATION Satisfactory project activity for both municipal and industrial applications

METALS Project activity for both stainless and carbon steel equipment to remain at low level

Global automotive market will slightly cool down this year

FEED & BIOFUEL Solid market environment for feed and biomass equipment

Macroeconomic environment Unchanged difficult economic environment, especially in the Euro zone Signs that emerging markets are bottoming out, with China showing some signs of recovery


28

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.

All figures according to IFRS.

Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages.

MEUR = million euros.

Disclaimer


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