The ANDRITZ GROUP Company presentation February 2013

Transcription

1 The ANDRITZ GROUP

2 Contents 1. ANDRITZ GROUP overview 2. Business areas: market update and goals 3. GROUP: long-term goals and outlook 2

3 Company profile A world market leader in most business areas HYDRO 40-45%* PULP & PAPER 30-35%* SEPARATION 10%* METALS 10%* FEED & BIOFUEL 5%* Electromechani- Systems for the Equipment for the Systems for the Systems for the cal equipment production of all mechanical and production and production of for hydropower types of pulp and thermal solid/ processing of animal feed plants (mainly tur- of certain paper liquid separation stainless steel pellets (pet and bines and genera- grades (tissue, for municipalities and carbon steel fish food) and tors); pumps; cartonboard); and various strips; industrial biomass pellets turbo generators boilers industries furnaces (wood, straw) * Long-term average share of the ANDRITZ GROUP s total order intake 3

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 (55.4%) 2010 Ritz 2011 Hemicycle Controls METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div Kaiser 2005 Lynson 2008 Maerz 2012 Bricmont 2012 Soutec 2013 Schuler SEPARATION 1992 TCW Engineering 1996 Guinard 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 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 FEED & BIOFUEL 1995 Jesma-Matador 2000 UMT 2005 Chemes Strojarne 2013 Shende Sales of the ANDRITZ GROUP (MEUR) 4

5 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 Hammerfest (33%) AE&E Austria Iggesund Tools Tristar Industries Asselin- Thibeau Hemicycle Controls Hammerfest (55%) Bricmont Soutec Schuler (~25%) AES Q1/ Dividend* (MEUR): * Paid out after AGM for the previous year 5

6 Key figures at a glance (I) Order intake: Satisfactory development in Q3 2012, only slightly below high reference figure of last year; increase in PULP & PAPER, METALS, and FEED & BIOFUEL; HYDRO down Order intake in Q1/ below extraordinarily high level of last year s reference figure, which included three large orders (two in PULP & PAPER, one in HYDRO) Order backlog (as of end of period): unchanged at high level Sales: In Q increase in all business areas except SEPARATION In Q1/ sales rose in all business areas, especially in PULP & PAPER due to processing of two large pulp mill orders Q Q1/ ,239 MEUR, -1% YOY 6,930 MEUR, -5% vs. EOP ,266 MEUR, +8% YOY 3,793 MEUR, -23% YOY 6,930 MEUR, +4% vs. EOY ,703 MEUR, +16% YOY 6

7 Key figures at a glance (II) EBITA: EBITA in Q slightly below Q EBITA in Q1/ increased compared to last year, but not fully matching sales growth EBITA margin: decline in Q and Q1/3 2012, mainly due to PULP & PAPER (execution of large pulp mill orders) and SEPARATION (cost overruns at some projects and investment in business expansion in emerging markets) 87 MEUR, -4% YOY Q Q1/ % (Q3 2011: 7.7%) 242 MEUR, +9% YOY 6.5% (Q1/3 2011: 7.0%) Balance sheet September 30, 2012 Equity ratio: stable 19.4% (EOY 2011: 20.6%) Net liquidity: continuing high cash position 1,286 MEUR, -8% vs. EOY 2011 Net working capital: unchanged at solid level -639 MEUR, +/-0% vs. EOY

8 Schuler: Global leader in metal forming technology, broadening ANDRITZ s product range in METALS 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%) Order intake, sales, and EBITDA margin of Schuler Group CAGR order intake: +7.6% CAGR sales: +9.2% EBITDA margin: avg. 6.6% Annual sales: ~1.1 bn. EUR Backlog*: ~1.1 bn. EUR ~5,500 employees* in more than 40 countries Sales by region*: Germany 32% Europe (without Germany) 20% Asia 33% America 15% * As of September 30, 2012 ** Including Müller Weingarten Group April 1-September 30 8

9 Global automobile manufacturing to grow by 4% p.a. Strongest growth in emerging markets Million units CAGR E 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) 9

10 China expected to show strongest growth in automobile manufacturing Automobile manufacturing by region 2011 Schuler: sales by region Q1/3 2011/12 Regional split of expected automobile manufacturing growth Source: OICA, PwC, JSC Automotive, figures include number of cars and light commercial vehicles (without heavy trucks, buses, and coaches); Others include South America and South Africa 10

11 Goal to reduce CO 2 and fuel consumption: ANDRITZ offers technologies for bio-ethanol/bio-diesel and weight reduction Alternatives for CO 2 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. 11

12 Tailor-welded blanks volume worldwide China again outpaces rest of the world MEUR CAGR Mercosur +3.4% China, rest of Asia +7.8% Japan +0.4% Nafta +1.4% Europe +1.3% Source: J.D. Power 12

13 Contents 1. ANDRITZ GROUP overview 2. Business areas: market update and goals 3. GROUP: long-term goals and outlook 13

14 HYDRO Market update and outlook Market drivers ANDRITZ bulb turbine, supplied for the world s largest tidal power plant in Sihwa, South Korea Population growth and economic growth in emerging markets drive demand for electricity; increasing interest in green electricity (hydro, wind, some solar) Old installed base in developed world leads to continuous investment in modernization and rehabilitation of installed turbines and generators Small-scale hydropower stations to show good demand due to low capex requirements and simple/short permission procedures Unbalanced electricity market in Germany delays pumped storage capex in Central Europe; however, globally satisfactory activity Good project activity in Turkey and some LATAM and Asian countries, relatively slow in Brazil Low US gas prices may impact local hydropower demand 14

15 EBITA margin goal HYDRO % General market development Influencing factors on margin Competition from Asia? Investment in new markets (e.g. tidal current turbines) *-2009: avg. 6.6% *-Q1/3 2012: avg. 7.1% ---Goal 2010 et seq.: % Q1/ et seq. * Figures before 2006 (acquisition of VATECH Hydro) are not representative/valid for comparison with today s HYDRO business area 15

16 PULP & PAPER Market update and outlook Market drivers Globally pulp consumption expected to show stable growth, with over-proportionate increase in Asia Pulp production capex for greenfields to continue on good level in Asia and South America Modernizations/upgrades in Europe and to some extent in the USA to continue Paper: Globally P/W and Newsprint shrinking, packaging stable, with continuing growth in Asia Tissue to continue growth, predominantly in emerging markets Biomass energy expected to remain on good level Bioethanol 2 nd generation slowly gaining ground Special segments (nonwoven, biaxially oriented plastic films) offer good growth opportunities for ANDRITZ ANDRITZ significantly increased production capacity of pulp line 2 at CMPSʼs Santa Fe mill, Chile 16

17 EBITA margin goal PULP & PAPER % Execution of large pulp mill orders Influencing factors on margin Share of service business/wear parts lower than at competitors Investment in new markets (nonwoven, plastic films, biofuel) : avg. 6.1% : avg. 5.0% Q1/3 2012: avg. 5.8% ---Goal 2010 et seq.: % * Q1/3 * Including restructuring expenses et seq. 17

18 SEPARATION Market update and outlook Market drivers Sewage sludge treatment plant in Düsseldorf, Germany, modernized by ANDRITZ Liquid/solid separation is a huge global market, covering large parts of global economy Stringent environmental regulations in developed world as well as population growth, urbanization, and fast economic expansion in emerging markets ANDRITZ s main segments: environmental, minerals, chemicals, food ANDRITZ has a broad, but still expandable product range with good opportunities to grow in current and new segments Goal to grow 5-10% p.a. organically plus acquisitions Strong service business (over 30% of sales) 18

19 EBITA margin goal SEPARATION % Cost overruns on some projects Influencing factors on margin Investment in market expansion (mining, food) and service business Acquisitions Competitors from emerging markets? : avg. 3.0% : avg. 6.8% Q1/3 2012: avg. 5.5% ---Goal 2010 et seq.: % Q1/ et seq. 19

20 METALS Market update and outlook Market drivers The new annealing and pickling plant for Zhangjiagang Pohang Stainless Steel, China (annual capacity: 435,000 t of stainless steel strip) Continuing low project activity expected due to prevailing over-capacities in developed world low capacity utilization rates, thus limited capex by steel/stainless steel producers Growing middle-class in emerging markets (cars, household appliances) and increased quality requirements from end-customer industries as long-term drivers Solid development of ANDRITZ s furnace business (aluminum, copper, steel) approx. one third of total sales 20

21 EBITA margin goal METALS % Influencing factors on margin No volume growth expected in the short-term due to weak market environment Development of automobile market (Schuler) Expansion of service business rather limited : avg. 4.0% : avg. 6.3% Q1/3 2012: avg. 5.2% ---Goal 2010 et seq.: % Q1/ et seq. 21

22 FEED & BIOFUEL Market update and outlook Market drivers Solid growth expected for special feed production equipment due to growth of world population and limited natural resources of fish and aquatic fauna Demand for wood pellets to be pushed by trend towards renewable energies Higher throughput and increase in energy efficiency: the new ANDRITZ BioMax pellet mill 22

23 EBITA margin goal FEED & BIOFUEL % Influencing factors on margin Focus on increasing profitability of capital business High share of service/wear parts Strong competition for biofuel projects : avg. 2.9% : avg. 7.0% Q1/3 2012: avg. 5.3% ---Goal 2010 et seq.: % Q1/ et seq. 23

24 Contents 1. ANDRITZ GROUP overview 2. Business areas: market update and goals 3. GROUP: long-term goals and outlook 24

25 Sales outlook 2012 and : Sales increase to approx. 5 billion EUR expected, mainly due to processing of the large pulp mill orders received in : first-time consolidation of Schuler from March 1, 2013 Sales of the ANDRITZ GROUP (MEUR) Sales Schuler* * Consolidation in ANDRITZ GROUPʼs accounts from March 1,

26 Target to continue long-term profitable growth 7.0% EBITA margin over the cycle : avg. 5.3% : avg. 6.0% 2010 et seq.: 7.0% over the cycle * 0 * Including restructuring expenses 26

27 Summary Long-term structural trends within all five business areas should support long-term organic growth of ANDRITZ Acquisitions will remain strategic focus to complement product range and support long-term growth Cautious view on market development, but still good project activity in all business areas except METALS, which is expected to continue at a moderate level this year Sales and earnings goals: Sales 2012: ~5.0 bn. EUR Sales 2013: ~5.0 bn. EUR + consolidation of Schuler Group s EBITA margin: goal of 7% over the cycle confirmed 27

28 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. 28