feed & biofuel - andritzatl.g.andritz.com/c/com2011/00/01/61/16198/1/1/0/...wood powder and...

Feed & BiofuelCapital Market Days 2008, Austria

Slide No. 2Capital Market Days 2008/Feed & Biofuel_Friedrich Papst

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.

Disclaimer


Contents

ANDRITZ FEED & BIOFUEL – OVERVIEW

Feed and biofuel market and growth drivers

Strategy and outlook 2009


Andritz Feed & Biofuel at a glance

Conventional feed: 57%Animal feed

Specialized feed: 11%Aquatic feed

Petfood

Biomass: 32%Wood pelleting

Waste pelleting

Ethanol

Applications and sales split 2007

Service andspare parts: 50%

Service and upgrades

Spare and wear parts

Products andsystems: 50%

Key process technology

Complete systems (excl. civil) incl. overall plant design, auto-mation, erection, and start-up

Products and services


Strong growth through organic expansion and acquisitions

69,0

137.8

120.6

93.699.699.2

108.4107.0

67.859.6

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Sales Andritz Feed & Biofuel (MEUR)

1995 Jesma-Matador

2000 UMT

2005 Chemes Strojarne

Acquisitions

Order intake:60 MEUR



1998 2003 2007

Acquisition of UMT Group Organic growth

Biofuel: 7%

Feed: 93%

Biofuel: 15%

Feed: 85%

Biofuel: 36%

Feed: 64%

Development of order mix


3.0

9.78.8

7.7

2.2

4.83.9

0.9

3.5

-2.3

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Long-term development of profitabilityEBITA margin Andritz Feed & Biofuel (%)

Major restructuringof the business area

Average EBITA margin 2003-2007: 6.6%Average EBITA margin 1998-2002: 1.8%

EBITA Andritz Feed & Biofuel (MEUR)

2.1

13.3

10.6

7.2

2.2

4.84.2

0.9

2.4

-1.4

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1.8%

6.6%


Global presence

Europe: 47%

North America: 27%

South America: 15%Asia: 7%Others: 4%

Sales 2007: 137.8 MEURSales by region:

Europe: 78%

North America: 13%

South America: 1%Asia: 7%Others: 1%

Employees 2007: 769Employees by region:

Esbjerg, Denmark

Divisional headquarter: R&D, manufacturing and

engineering of machines and systems.

Humenne, Slovakia

Machines and components. Manufacturing source

for Andritz Sprout global distribution.

Geldrop, Netherlands

Pellet mill consumables, global engineering and

manufacturing centre for dies and rolls for all

major pellet mill brands.

Muncy USA

Engineering and manufacturing centre for

industrial products. Sales and service centre for

North America.

Foshan China

Machines and components. Manufacturing source

for Andritz Sprout Asia.

Main locations


Contents

Andritz Feed & Biofuel – overview

FEED AND BIOFUEL MARKET AND GROWTH DRIVERS

Strategy and outlook 2009


Competitors (I)

Andritz: 18%

Bühler: 12%

CPM: 10%

Muyang: 8%

Van Aarsen: 4%

Others: 48%

Total market:

~ 620 mill. tons p.a. feed

~ 500 mill. EUR p.a. technology business

Conventional feed

Source: Andritz estimate


Competitors (II)

Andritz: 9%

Bühler undAeroglide: 20%

Wenger/Extrutech: 18%

Clextral: 8%

Others: 45%

Total market:

~ 55 mill. tons p.a. feed

~ 200 mill. EUR p.a. technology business

Special feed



Competitors (III)

Andritz: 52%

Bühler: 14%

CPM: 14%

A. Kahl: 6%

Others: 14%

Total market:

~ 15 mill. tons p.a. pellets

~ 100 mill. EUR p.a. technology business*

Biofuel/wood pelleting

Source: Andritz estimate; * pelleting lines


Animal feed market growth

Customer profile trend:

Commercial feed millers in Western

Europe and USA stagnating/reducing.

Vertically integrated meat producers

growing.

Main growth regions:

Strongly growing feed production in

emerging regions: Asia, Eastern

Europe, Russia, and Central/South

America.

Market growth drivers:

Growing global population.

Increased meat consumption due to

increased buying power in developing

countries.

1998 2003 2008

620

Mill tons/year

Growth ~4-5% p.a.



Andritz technology in the animal feed industry

Animal productionHuman food Animal Feed

Feed ingredients Animal feed factory

Andritz market position: top 3

Andritz market share: 18%

Human Food processing


Important animal feed reference: Biodar Croatia

EPC contract: multi purpose animal feed mill; 3 lines, 250,000 tons/year


Aquatic feed market growth


Vertically integrated international/regional fish

farming and fish processing companies growing.

Regional commercial aquatic feed producers

stagnating/reducing.


Asia (Tilapia, shrimp, catfish), Central and South

America (Chile: salmon, rest: tilapia), Eastern

Mediterranean (sea bass, sea bream),

Northeastern Atlantic region (salmon).


Growing population in traditional fish consuming

regions.

Increasing fish consumption in emerging regions.

Wild catch limitations: ~100 mill. t/y stagnation.

Enhanced farm processing and transportation

enabling cost efficient global supplies.

0

50

100

150

200

1976 1980 1990 1997 2000 2010 2020 2030

Fishing Fish farming

Mill. tons/year

Source: FAO

1998 2003 2008

Mill. tons/year

45

Growth 2006-2008: ~6-8% p.a.



Human foodHuman Food processing Aquatic Feed



Andritz in the aquatic industry

Feed ingredients Fish feed factory Production equipment

Aquaculture production


Important aquatic feed reference: Emsland Aller Aqua

Greenfield aquatic feed extrusion plant in Germany (completion September 2008), 60,000 tons/year.


Pet-food ingredients

Andritz in the pet-food industry

Pet-food factory

Pet-food productsPet-food distribution


Important pet-food references: Wagg Foods and KormotechWagg Foods, UK: 2x8 tph,

handover 2003 + 2006

Kormotech, Ukraine:

5-7 tph, handover 2005


Mill. tons/year

10

1

Growth 2006-2008: 20%+ p.a.

Biofuel/wood pelleting market growth


Number of large projects by energy companies –

in conjunction with pulp and paper and large

timber industries – rising.

Small regional private investors, mainly in North

America and emerging regions.


Northern America, Northern Scandinavia, South

America (since 2006), Russia (since ~2002),

South East Asia (to come).


Kyoto agreement; growing usage of CO2

neutral fuels.

Increasing prices of oil/gas.

Increasing political support for environmental

issues.

1998 2003 2008Source: Andritz estimate


Andritz in the biofuel/wood pelleting industry



Rawmaterials

Wood powder and pellet factory

Wood powderand wood pellets

Municipal heating and electricity

production

Domestic heasting


Important biofuel/wood pellets reference: Fram

EPC contract: green field wood pelleting in the US; five lines, 130,00 tons/year.


Andritz in the recycling and fuel industry

Rawmaterials

Waste processing station Pelleting plant

Waste pelletsEnergy productionEnergy consumers


Important recycling and fuel reference: AVR

Waste pelleting, Netherlands: 8 tph, handover 2006.


Contents

Andritz Feed & Biofuel – overview

Feed and biofuel market and growth drivers

STRATEGY AND OUTLOOK 2009


Strategic goals

Maintain profitability above 8% (EBITA margin).

Continuation of organic growth at > 5%.

Being the first choice ‛One-Stop-Shop’

technology partner to the feed and biofuel

industries; expand turn key project capacity.

Strengthen global set up in emerging markets to

> provide local service to customers

> improve product cost structure.

Look for acquisition opportunities in existing or

complementary business segments.


Outlook 2009

Current market development:

So far no substantial slow down in inquiries or order intake.

Animal feed:

Generally good investment activities in emerging regions like South America or

Eastern Europe.

Aquatic feed:

Slow down of Asian aquatic feed growth (regional saturation). Increased

growth in new aquaculture regions (Arab world, northern part of South

America).

Biofuel wood:

Slow down of investments in North America due to lack of finance. Increasing

activity in Northern and Western Europe, where power stations are

increasingly using green fuels.

OUR VISION:World market leader for high-tech production systems

and services for pulp, paper, hydropower, steel,and other specialized industries.

feed & biofuel - andritzatl.g.andritz.com/c/com2011/00/01/61/16198/1/1/0/...wood powder and...

Documents