The ANDRITZ GROUP Company presentation January 2012

Transcription

1 The ANDRITZ GROUP Company presentation January 2012

2 Contents Targets ANDRITZ GROUP: overview Business areas: outlook 2012 and long-term drivers Acquisitions Company presentation January 2012

3 Company profile A world market leader in most business areas HYDRO PULP & PAPER SEPARATION** METALS FEED & BIOFUEL ~ 40-45%* ~ 30-35%* ~ 10%* ~ 10%* ~ 5%* Electromechanical equipment for hydropower plants (mainly turbines and generators); pumps Systems for the production of all types of pulp and of certain paper grades (tissue, cartonboard) Systems for mechanical and thermal solid/liquid separation for municipalities and various industries Systems for the production and processing of stainless steel and carbon steel strips * Long-term average share of the Group s total order intake ** The ENVIRONMENT & PROCESS business area was renamed SEPARATION as of October 1, Company presentation January 2012 Systems for the production of animal feed and biomass pellets (wood, straw, etc.)

4 Strengthening of the market position Growth through organic expansion and acquisitions HYDRO 2006 VA TECH HYDRO 2007 Tigép 2008 GE Hydro business 2008 GEHI (JV) 2010 Precision Machine 2010 Hammerfest Strøm (33.3%) 2010 Ritz METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div Kaiser 2005 Lynson 2008 Maerz SEPARATION 1992 TCW Engineering 1996 Guinard SYS 2004 Bird Machine 2004 NETZSCH Filtration 2004 Fluid Bed Systems of VA TECH WABAG 2005 Lenser Filtration 2006 CONTEC Decanter 2009 Delkor Capital Equipment 2009 Frautech 2010 KMPT 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 2011 AE&E Austria 2011 Iggesund Tools 2011 Asselin-Thibeau FEED & BIOFUEL 1995 Jesma-Matador 2000 UMT 2005 Chemes Strojarne 3,610 3,554 3,283 3,198 2,710 1,744 1,481 1,319 1,225 1,110 Compound Annual Growth Rate (CAGR) of Group sales : +12% p.a. (thereof approximately half organic growth) Sales (MEUR) Order intake (MEUR) 4 Company presentation January 2012

5 Q1-Q3 2011: Summary of key developments Order intake: strong rise in Q mainly due to HYDRO Order backlog: substantial increase in HYDRO, PULP & PAPER, and SEPARATION Sales: strong increase in Q due to PULP & PAPER EBITA and margin: improvements mainly in HYDRO and PULP & PAPER EBITA: EBITA margin: 1,254 MEUR, +35% yoy Q ,325 MEUR, +34% vs ,173 MEUR, +31% yoy 90 MEUR, +34% yoy 7.7% (Q3 2010: 7.5%) 4,899 MEUR, +51% yoy Q1-Q % vs ,184 MEUR, +30% yoy 221 MEUR, +34% yoy 7.0% (Q1-Q3 2010: 6.7%) Balance sheet Equity ratio: stable Net liquidity: continuing high cash position Net working capital: unchanged at solid level 19.5% ( : 19.7%) 1,330 MEUR, +13% vs MEUR, +13% vs Company presentation January 2012

6 High order intake in Q Strong increase in HYDRO 3,236 Q3: 932 Q2: 1,395 Q1: % +35% +42% +83% 4,899 4,899 Q3: 1,254 Q2: 1,979 Q1: 1,666 Q1-Q Q1-Q Group order intake (MEUR) Q1-Q Order intake of the business areas Q1-Q in MEUR (+/- vs. Q1-Q3 2010): HYDRO: 1,813 (+18%) PULP & PAPER: 2,351 (+119%) SEPARATION: 374 (+20%) METALS: 254 (+29%) FEED & BIOFUEL: 108 (-3%) 6 Company presentation January 2012

7 Q1-Q3 2011: Strong rise of order intake driven by some large orders in HYDRO and PULP & PAPER Order intake Q1-Q vs. Q1-Q in MEUR Orders > 100 MEUR Orders > 100 MEUR Orders > 5 MEUR Orders > 10 MEUR Orders > 3 MEUR Ilisu Belo Monte Eldorado Mica Montes d. P. 2,351 1,813 1,060 1, HY PP SE ME FB 1,076 1,190 Q1-Q ,378 Q1-Q ,076 Q1-Q ,291 Q1-Q Company presentation January Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q3 2011

8 Strong net cash position Stable development despite acquisitions Ahlström rem. 50% Guinard rem. 50% Fläkt Selas Fiedler IDEAS Acutest Thermtec rem. 24.5% Kaiser AFSR Netzsch Bird Lenser Universal Lynson VA TECH HYDRO Kuesters BMB Tigép Sindus GE Hydro GEHI Kufferath Maerz Rollteck Frautech Delkor DMT/Biax Rieter Perfojet Precision Machine KMPT Ritz AE&E Austria Iggesund Tools Hammerfest (33.3%) Q1-Q3 11 Dividend* (MEUR): ,177 1, Q1-Q Net liquidity as of end of period (MEUR) * Paid out after AGM for the previous year 8 Company presentation January 2012

9 Contents Targets ANDRITZ GROUP: overview Business areas: outlook 2012 and long-term drivers Acquisitions Company presentation January 2012

10 Acquisitions in 2011: Further strengthening product offerings, especially in PULP & PAPER In 2011, companies with aggregate annual sales of 400 MEUR and 700 employees were acquired. 10 Company presentation January 2012

11 ANDRITZ Energy & Environment (AE&E) More than 150 years of experience / / Simmering- Graz-Pauker: foundation of a coppersmith s shop by Josef Pauker Waagner-Biró: Rudolf Philipp Waagner opens an ironmongery business, Anton Biró founds a building locksmith s shop Aktiengesellschaft R. Ph. Waagner Austrian Energy & Environment SGP/Waagner Biro GmbH VA-TECH Group AE Energietechnik GmbH Babcock Borsig-Gruppe Insolvency of AE Energietechnik (2002) AE&E Austria GmbH & Co KG 1 A-TEC Group 2 insolvency in 2010 ANDRITZ Energy & Environment GmbH ANDRITZ GROUP The best way from A to A 1 Name since Founded as ATB Beteiligungs GmbH in 2001, renamed to A-TEC Industries AG in Company presentation January 2012

12 AE&E added important technologies Business area: PULP & PAPER Employees: 325 Annual sales: MEUR Products: Boilers Biomass RDF sludge Circulating fluidized bed technology Flue gas cleaning Thermal power business Service Bubbling fluidized bed boiler, M-real Hallein AG, Austria 12 Company presentation January 2012

13 ANDRITZ Iggesund Tools strengthens and complements PULP & PAPER s wood processing area Business area: PULP & PAPER (Service) Products and services: Knife systems for pulp wood chipping and saw mills Synergy: Multiplies ANDRITZ s existing knife sales to the pulp industry Employees: 160 Annual sales: 25 MEUR TurnKnife system by ANDRITZ Iggesund Tools 13 Company presentation January 2012

14 ANDRITZ Asselin-Thibeau strengthens nonwoven product portfolio 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 Filtration line of ANDRITZ Asselin-Thibeau 14 Company presentation January 2012

15 Contents Targets ANDRITZ GROUP: overview Business areas: outlook 2012 and long-term drivers Acquisitions Company presentation January 2012

16 HYDRO Unchanged good market environment Outlook for 2012 Good project activity worldwide to continue: modernization of existing plants in Europe and North America Solid demand for rehab/service due to age structure of installed base New hydropower plants mainly in emerging markets; continuing low market activity in China 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 Favorable potential for rehab 16 Company presentation January 2012

17 PULP & PAPER Solid market, unchanged strong long-term drivers Outlook for 2012 Solid project activity for modernization and capacity increases of existing pulp mills Good pipeline of greenfield pulp mills (CMPC, Klabin, Arauco) order awards expected for 2012/2013 Unchanged strong competitive environment Long-term drivers Long-term build up of greenfield pulp production capacities in South America to continue; supported by pulp demand growth in Asia and continuing pulp mill closures in northern hemisphere (6.4 mill t of pulp capacity shut down during the last two years) Expansion of pulp capacities expected in China and Russia Continuing demand for biomass/recovery boilers due to increasing environmental regulations/incentives Good project activity for recycled fiber lines and tissue machines, mainly in China 17 Company presentation January 2012

18 SEPARATION Good environment for municipal and industrial equipment Outlook for 2012 Solid project activity in municipal business, especially in Europe and China Good demand for industrial process application from industrial customers, in particular from the chemical and mining industries Satisfactory demand for municipal and industrial drying plants Long-term drivers More stringent regulations, especially in developed markets, to support demand for environmental equipment Growing environmental awareness in combination with population and economic growth should result in increasing project activity for municipal dewatering plants 18 Company presentation January 2012

19 METALS No major recovery expected for 2012 Outlook for 2012 Overall low project activity worldwide to continue No major investments by steel producers in Europe and North America expected Reasonable investment activity in Asia and South America Long-term drivers Increasing quality requirements from end customers industries force steel producers to modernize and update existing installed systems, especially in Europe and North America Population growth in emerging countries leads to consumption increase of steel products (automotive, household appliances, etc.) 19 Company presentation January 2012

20 FEED & BIOFUEL Satisfactory market environment for feed and biomass Outlook for 2012 Good project activity in the animal feed sector, mainly in South America, Asia, and Eastern Europe Solid project activity for biomass/wood pelleting equipment, mainly in Europe and North America Continuing expenditures for biomass expansion projects Long-term drivers Good pipeline of feed equipment projects High investment activity in biomass pelleting lines expected to continue 20 Company presentation January 2012

21 Contents Targets ANDRITZ GROUP: overview Business areas: outlook 2012 and long-term drivers Acquisitions Company presentation January 2012

22 Over 4.5 bn. EUR sales targeted for 2012 due to high order intake 2011 Target to reach more than 4.5 bn. EUR sales in 2012, supported by receipt of some large orders in 2011 as well as sales contributions from acquisitions. However, achievement of sales and earnings goals might be negatively impacted by severe macroeconomic slowdown (still high uncertainties with regard to future development of the global economy due to global debt/euro crises). 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 lower than in recent past; however: Confirmation of goal to increase sales long-term by 10% p.a. on average. 2,710 3,283 3,610 3,198 3,554 > 4,000 > 4, ,319 1,110 1,225 1,481 1,744 2, H E 2012E Sales of the ANDRITZ GROUP (MEUR) 22 Company presentation January 2012

23 Update on Group EBITA margin goal 7.0% over the cycle : avg. 5.3% : avg. 6.0% 2010 et seq.: 7.0% over the cycle , , , , , , , , * 3, , ,184 > 4,000 6,000 5,000 > 4,500 4,000 3,000 2,000 1, Q1-Q E 2012E 0 * Including restructuring expenses EBITA margin (%) Sales (MEUR) 23 Company presentation January 2012

24 Update on dividend goal Sustainable 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% Dividend per share (EUR) Payout ratio 44.1% 44.2% 34.3% 32.6% 32.5% 38.3% 40.3% 52.9% 48.9% Company presentation January 2012

25 Disclaimer 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. 25 Company presentation January 2012