ANDRITZ GROUP Company presentation February 2017

Transcription

1 ANDRITZ GROUP

2 Contents 1 ANDRITZ GROUP overview 2 Business areas: market update 3 Outlook, Group strategy, and long-term goals

3 The ANDRITZ GROUP Overview ANDRITZ is a globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metal-working and steel industries, and solid/liquid separation in the municipal and industrial sectors. Sales by region 2015 (%) Headquarters: Graz, Austria Global presence: over 250 production sites and service/sales companies worldwide Emerging markets: 43% 6,377 MEUR Europe & North America: 57% KEY FINANCIAL FIGURES Q1-Q AND 2015 Unit* Q1-Q Order intake MEUR 4, ,017.7 Order backlog (as of end of period) MEUR 7, ,324.2 Sales MEUR 4, ,377.2 EBITA MEUR Net income (including non-controlling interests) MEUR Employees (as of end of period; without apprentices) - 25,547 24,508 * MEUR = million euro Q1-Q Europe North America South America China Asia (ex. China) Others* * Africa and Australia 3

4 Company profile Worldwide leading position in four business areas 30%* 35%* 25%* 10%* Product offerings: electromechanical equipment for hydropower plants (turbines, generators); pumps; turbo generators Product offerings: equipment for production of all types of pulp, paper, tissue, and board; energy boilers Product offerings: presses for metal forming (Schuler); systems for production of stainless steel, carbon steel, and nonferrous metal strip; industrial furnace plants Product offerings: equipment for solid/liquid separation for municipalities and various industries; equipment for production of animal feed and biomass pellets * Average share of ANDRITZ GROUP s total order intake 4

5 Strengthening of market position Growth through organic expansion and acquisitions Acquisitions by business area since 1990 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 2011 AE&E Austria 2011 Iggesund Tools 2011 Tristar Industries 2011 Asselin-Thibeau 2012 AES 2013 MeWa 2015 Euroslot 2016 SHW Casting Technologies METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div Kaiser 2005 Lynson 2008 Maerz 2012 Bricmont 2012 Soutec 2013 Schuler (> 95%) 2013 FBB Engineering 2014 Herr-Voss Stamco 2016 Yadon (51%) 2016 AWEBA SEPARATION 1992 TCW Engineering 1995 Jesma-Matador 1996 Guinard 2000 UMT SYS 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 Compound Annual Growth Rate (CAGR) of Group sales : +14% p. a. (thereof approximately half organic growth) 1,744 2,710 3,283 3,610 3,198 3,554 4,596 5,177 5,711 5,859 6, Sales (MEUR) Order intake (MEUR) 5

6 Contents 1 ANDRITZ GROUP overview 2 Business areas: market update 3 Outlook, Group strategy, and long-term goals

7 HYDRO Challenging market environment Modernizations/rehabilitations Slow project activity due to unchanged low electricity and energy prices, especially in Europe Stable - Small-scale hydropower and pumps Satisfactory project activity, especially in emerging markets Stable +/- Long-term average growth potential: New hydropower plants 3-4% p.a. Some new projects in advanced planning phase, however awards only expected in the medium-term Stable +/- Competition Challenging market conditions for some selective projects Main competitors: GE/Alstom, Voith 7

8 Large-scale hydro projects with potential order values of > 100 MEUR for electro-mechanical equipment Advance work agreement signed. ANDRITZ HYDRO share ~ 250 MEUR. Expected to be booked as order intake in 2017 Planned projects Country MW Total plant Time frame Inga 3 Congo 4,800 Medium to long term Swansea Bay United Kingdom 352 Government decision in 2017 Koralm Austria 918 Effective within next 2-3 years Grand Coulee Units G19-G21 Turbine upgrade/rehabilitation United States 1,800-2,310 Effective within next 2-3 years Upper Cisokan Indonesia 1,040 Expected to be effective within 2017 McNary Runner Replacement United States 980-1,127 Effective within next 2-3 years Dasu Pakistan 2,160 Effective within next 2-3 years Caculo Cabaca Angola 2,100 Effective within next 2-3 years Rogun Tajikistan 2,400 Effective within next 2-3 years Koysha (Gibe IV) Ethiopia 2,300 Effective within next 2-3 years Toktogul (phase 2) Kyrgyzstan 1,440 Effective within next 2-3 years Pfaffenboden Austria 300 Effective within next 2-3 years Polavaram India 960 Effective within next 2-3 years 8

9 Global hydropower potential by region To date, only about 25% has been developed Europe North America 1,910 TWh/year 36% 53% 1,200 TWh/year 47% China 64% Africa 2,720 TWh/year 59% 41% South America 7% Asia (ex. China) 2,803 TWh/year 24% 1,646 TWh/year 93% 15% 5,463 TWh/year 76% 85% Not developed hydropower potential (%) Developed hydropower generation (%) Technically feasible hydropower potential : ~ 15,700 TWh/year Existing hydropower generation: ~ 3,962 TWh/year Source: Hydropower & Dams World Atlas,

10 Biggest hydro potential in Asia Regional split of total value of ANDRITZ offers outstanding Not developed hydropower potential by region 22% 19% Regional split of number of ANDRITZ offers outstanding 9% 8% 11% 11% 39% 15% 19% 39% ~12,000 TWh/year 15% Asia Africa / Middle East South America Europe North America 20% 17% 10% 13% 33% Europe North America South America Africa China Asia (ex. China) Asia Africa / Middle East South America Europe North America 10

11 PULP & PAPER Satisfactory project and investment activity Modernizations Satisfactory project and investment activity for modernization/refurbishment projects (increase capacity, efficiency, and profitability of existing mills) Stable +/- Long-term average growth potential: 2-3% p.a. Service Solid demand should ensure further organic growth; Focus on enlarging IIoT product offerings (eshop, ANDRITZ OPP) Greenfield Investments in greenfield pulp mills to continue; mid- to long-term good project activity for greenfield pulp mills Stable + Competition Stable competitive environment Main competitors: Valmet, Voith 11

12 PULP & PAPER Good project pipeline for greenfield pulp mills Chile: Owner project Capacity/a.* Planned start-up Arauco MAPA Brazil: Owner project Capacity/a.* Planned start-up Eldorado Três Lagoas Veracel Eunápolis et seq. Braxel Peixes et seq. CRPE Holding S.A Ribas do Rio Pardo et seq. Suzano Imperatriz et seq. Fibria Aracruz et seq. Eldorado - Três Lagoas et seq. CMPC Brazil Pelotas et seq. Mozambique: Owner Capacity/a.* Planned start-up Portucel et seq. Finland: Owner project Capacity/a.* Planned start-up Finnpulp Kuopio China: Owner project Capacity/a* Planned start-up Guangxi Jingui Qinzhou City Russia: Owner project Capacity/a* Planned start-up Siberwood Sveza Group Segezha et seq. * Annual capacity in million tons (may change over time); source: Pöyry. Capacity/year refers to added gross capacity (i.e. relevant as accessible market) without taking into account possible shut-downs of existing capacities 12

13 METALS Satisfactory project and investment activity Metal forming Satisfactory project activity; some medium-sized order awards by car manufacturers and suppliers Stable demand from other industries Aluminum Project and investment activity below the favorable level of the previous year Stable +/- Stable + Carbon steel / Stainless steel Unchanged low project activity, only selective investments in emerging markets Stable - Long-term average growth potential Metal forming: 4-5% p.a. Metal processing: 2-3% p.a. Competition Stable competition at challenging level Competitors: Metal forming: main competitors from Japan and China Carbon, Stainless, Aluminum: Danieli, SMS, Primetals (Mitsubishi/VAI) 13

14 Light vehicles production (in million units) Further growth expected until 2020, especially in China CAGR E CAGR E Americas -0.5% +3.1% Europe +3.3% +2.6% Asia (ex. China) +1.9% +4.1% China +9.4% +5.6% Others +4.8% +8.1% Source: PwC, Autofacts, October E 2020E 14

15 SEPARATION Mixed development of markets Municipal Investment activity at reasonable levels, mainly in developed markets Stable +/- Long-term average growth potential: 2-3% p.a. Feed and biomass pelleting Solid project activity Stable +/- Industrial >> Reasonable demand in chemicals >> Low project activity in food and mining/minerals Stable +/- Competition Very fragmented market with global and regional competitors 15

16 Contents 1 ANDRITZ GROUP overview 2 Business areas: market update 3 Outlook, Group strategy, and long-term goals

17 Outlook for 2017 Investment activity expected to remain at last years levels Project activity for Good project activity for Unchanged slow market Low project activity in modernizations and new modernizations and for stainless steel mining to remain; hydropower stations to capacity increases to equipment; satisfactory solid project activity in continue at subdued continue; good pipeline project activity in metal environment, food, level; satisfactory for greenfield pulp mill forming to continue chemicals, and market activity for projects in Brazil and feed/biomass pelleting pumps to continue Russia stable +/- stable + stable + stable +/- ANDRITZ GROUP 2017E: - Satisfactory business development - Slight increase in Group sales - Improvement of profitability 17

18 Group strategy and long-term goals Growth Focus on growth markets with higher growth opportunities Expansion of product portfolio through R&D and acquisitions Achieve long-term growth of 5 8 % p.a. depending on market growth and acquisitions Profitability Service: increase share of service sales to 35-40% EBITA margin: regain 7% and improve to 8% with top-line sales growth Dividend: payout ratio at least ~50% and mid-term increase to ~60% Technological Leadership Achieving the status of preferred supplier by virtue of its technology, quality and references Offer best ROI for customer Sustainability in development of innovative technologies Focus R&D: IIoT, environmental protection, enhancing energy efficiency, clean power generation Global market leader Global Footprint Balanced global presence Emerging markets expansion Further shift of manufacturing capacities to emerging markets 18

19 Target to continue long-term profitable growth Goal: further improve profitability with top-line sales growth Sales CAGR: 12.1% Sales CAGR: 16.4% Sales CAGR: 13.3% Sales CAGR: 5-8% p.a. Average EBITA margin How to achieve long-term profitable growth: - Launch of new service products (OPP, eshop) - Focus on further acquisitions - Continued cost optimization 19