the andritz groupatl.g.andritz.com/c/com2011/00/02/00/20071/1/1/0/... · 2017-03-01 · circulating...

Company presentation January 2012The ANDRITZ GROUP

2 Company presentation January 20122

Contents

ANDRITZ GROUP: overview

Acquisitions 2011

Targets

Business areas:outlook 2012 andlong-term drivers


Systems for the production of animal feedand biomass pellets (wood, straw, etc.)

Systems for the production and processing of stainless steel and carbon steel strips

Systems for mechanical and thermal solid/liquid separation for municipalities and various industries

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

Electromechanical equipment for hydropower plants (mainly turbines and generators); pumps

~ 5%*~ 10%*~ 10%*~ 30-35%*~ 40-45%*FEED & BIOFUELMETALSSEPARATION**PULP & PAPERHYDRO

* Long-term average share of the Group’s total order intake** The ENVIRONMENT & PROCESS business area was renamed SEPARATION as of October 1, 2011

Company profileA world market leader in most business areas


Compound Annual Growth Rate (CAGR)

of Group sales 2001-2010: +12% p.a.

(thereof approximately half organic growth)

Sales (MEUR)

Strengthening of the market positionGrowth through organic expansion and acquisitions

3,198

3,610

3,283

2,710

1,7441,481

1,2251,1101,319

3,554

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Order intake (MEUR)

1990 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 Asselin-Thibeau

PULP & PAPER

1995 Jesma-Matador2000 UMT2005 Chemes Strojarne

FEED & BIOFUEL

2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (33.3%)2010 Ritz

HYDRO

1992 TCW Engineering1996 Guinard2002 3SYS2004 Bird Machine2004 NETZSCH Filtration2004 Fluid Bed Systems of

VA TECH WABAG2005 Lenser Filtration2006 CONTEC Decanter2009 Delkor Capital Equipment2009 Frautech2010 KMPT

SEPARATION

1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz

METALS


Q1-Q3 2011: Summary of key developments

Balance sheet

Q1-Q3 2011Q3 2011

1,330 MEUR, +13% vs. 31. 12. 2010Net liquidity: continuing high cash position

-630 MEUR, +13% vs. 31. 12. 2010

19.5% (31. 12. 2010: 19.7%)

90 MEUR, +34% yoy 7.7% (Q3 2010: 7.5%)

1,173 MEUR,+31% yoy

7,325 MEUR,+34% vs. 30. 9. 2010

1,254 MEUR,+35% yoy

221 MEUR, +34% yoy 7.0% (Q1-Q3 2010: 6.7%)

3,184 MEUR,+30% yoy

+38% vs. 31. 12. 2010

4,899 MEUR,+51% yoy

Equity ratio: stable

EBITA and margin: improvements mainly in HYDRO and PULP & PAPER EBITA: EBITA margin:

Net working capital: unchanged at solid level

Sales: strong increase in Q3 2011due to PULP & PAPER

Order backlog: substantial increase in HYDRO,PULP & PAPER, and SEPARATION

Order intake: strong rise in Q3 2011mainly due to HYDRO


Q1:908

Q1:1,666

Q2:1,979

Q2:1,395

Q3:1,254

Q3:932

High order intake in Q3 2011Strong increase in HYDRO

Group order intake (MEUR)Q1-Q3 2010 Q1-Q3 2011

3,236

4,899 4,899

Q1-Q3 2011

+83%

HYDRO: 1,813 (+18%)

PULP & PAPER: 2,351 (+119%)

METALS: 254 (+29%)SEPARATION: 374 (+20%)

FEED & BIOFUEL: 108 (-3%)

Order intake of the business areasQ1-Q3 2011 in MEUR (+/- vs. Q1-Q3 2010):

+51%

+42%

+35%


Q1-Q3 2011: Strong rise of order intake driven bysome large orders in HYDRO and PULP & PAPER

1,1901,378

1,0761,291

252 32052 106

351

435

1,060

148

9583

145

54

1328

59

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

HY PP FB

█ Orders > 100 MEUR █ Orders > 100 MEUR █ Orders > 3 MEURBelo MonteMica

Ilisu

1,541

1,813

1,076

2,351

EldoradoMontes d. P.

Order intake Q1-Q3 2010 vs. Q1-Q3 2011 in MEUR

SE ME

█ Orders > 5 MEUR █ Orders > 10 MEUR

311 374

197 254 111 108


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1-Q3 11

77 103 55220

384 366 247409

678

1,3301,177

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1-Q32011

Net liquidity as of end of period (MEUR)

Strong net cash positionStable development despite acquisitions

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

IggesundTools

DMT/Biax

RieterPerfojet

PrecisionMachine

KMPT

Ritz

Hammer-fest(33.3%)

* 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


Contents


Acquisitions 2011

Targets



In 2011, companies with aggregate annual sales of 400 MEUR and 700 employees were acquired.

Acquisitions in 2011: Further strengthening productofferings, especially in PULP & PAPER

►

►


ANDRITZ Energy & Environment (AE&E)More than 150 years of experience

1 Name since 20082 Founded as ATB Beteiligungs GmbH in 2001, renamed to A-TEC Industries AG in 2004

20112002/201019991991/1992190018541853

AE Energie-technik GmbH

Babcock Borsig-Gruppe

Insolvency of AE Energie-technik (2002) AE&E Austria GmbH & Co KG1

A-TEC Group2

insolvencyin 2010

ANDRITZ Energy & Environment GmbH

ANDRITZ GROUP

AustrianEnergy & Environment SGP/WaagnerBiro GmbH

VA-TECH Group

Aktien-gesellschaftR. Ph. Waagner

Waagner-Biró: Rudolf Philipp Waagneropens an ironmongery business, Anton Birófounds a building locksmith’s shop

Simmering-Graz-Pauker: foundation of a copper-smith’s shop by Josef Pauker

The best way from A to A


AE&E added important technologies

Business area:PULP & PAPER

Employees:325

Annual sales:250-300 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


Business area:PULP & PAPER (Service)

Products and services:Knife systems for pulp wood chipping and saw mills

Synergy:Multiplies ANDRITZ’sexisting knife sales to the pulp industry

Employees:160

Annual sales:25 MEUR

ANDRITZ Iggesund Tools strengthens

▲ TurnKnife system by ANDRITZ Iggesund Tools

and complements PULP & PAPER’s wood processing area


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 ableto supply complete vertical system solutions for production of nonwovens

Employees:200

Annual sales:40 MEUR

ANDRITZ Asselin-Thibeau strengthensnonwoven product portfolio

▲ Filtration line of ANDRITZ Asselin-Thibeau


Contents


Acquisitions 2011


Targets


HYDROUnchanged 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 lowmarket 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


PULP & PAPERSolid 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 andcontinuing 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 increasingenvironmental regulations/incentives

Good project activity for recycled fiber lines and tissue machines, mainly in China


SEPARATIONGood 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


METALSNo 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.)


FEED & BIOFUELSatisfactory 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


Contents


Acquisitions 2011

Targets



9371,319

1,110 1,2251,481

1,744

2,710

3,2833,610

3,1983,554

> 4,500

> 4,000

2,012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2011E 2012E

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 macro-economic 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.

due to high order intake 2011Over 4.5 bn. EUR sales targeted for 2012

Sales of the ANDRITZ GROUP (MEUR)


2010 et seq.: 7.0% over the cycle

Update on Group EBITA margin goal 7.0% over the cycle

7.2

5.1

6.56.46.16.16.3

5.15.35.24.7

7.0

937

3,184

> 4,500

3,198

3,6103,2832,710

1,7441,481

1,2251,1101,319

3,554> 4,000

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 Q1-Q32011

2011E 2012E0

1,000

2,000

3,000

4,000

5,000

6,000

EBITA margin (%) Sales (MEUR)

*

* Including restructuring expenses

2005-2009: avg. 6.0% 2000-2004: avg. 5.3%


Update on dividend goalSustainable 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%

48.9%52.9%40.3%38.3%

32.5%32.6%34.3%44.2%44.1%

2002 2003 2004 2005 2006 2007 2008 2009 2010

1.00 1.101.000.75

0.500.350.250.23

1.70

2002 2003 2004 2005 2006 2007 2008 2009 2010

Dividend per share (EUR)

Payout ratio


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

the andritz groupatl.g.andritz.com/c/com2011/00/02/00/20071/1/1/0/... · 2017-03-01 · circulating...

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