Andritz Ag · VIE:ANDR
Andritz — Investor Day (September 2019)
54 slides from Andritz's investor day presentation, Sep 17, 2019
Slide 1: ANDRITZ Capital Market Day
ANDRITZ CAPITAL MARKET DAY DOMENICO IACOVELLI │ VIENNA │ SEPTEMBER 17, 2019
Slide 2: Agenda
AGENDA 1 Schuler at a Glance 2 Technology & Products 3 Financial Key Figures 4 Market Environment 5 Strategy & Outlook 2
Slide 3: Schuler at a Glance
SCHULER AT A GLANCE 3
Slide 4: Schuler at a Glance: Facts & Key Figures
SCHULER AT A GLANCE FACTS & KEY FIGURES Provider of first-rate technology and innovative system solutions Schuler Group 2018 (in Mil. €) for the digital transformation of forming technology Sales 1,212.1 Founded 1839 in Göppingen, Germany Products: Presses, automation and software solutions, d
Slide 5: Our Global Customer Base: Solutions by Industry
OUR GLOBAL CUSTOMER BASE SOLUTIONS BY INDUSTRY AUTOMOTIVE TIER 1-3 E-MOBILITY RAILWAY AEROSPACE APPLIANCES MINTING INDUSTRIAL APPLICATIONS 5
Slide 6: Market Position
MARKET POSITION Ø Sales growth 2014-2018, % Bubble size ≈ sales in 2018, Mil. € 22 97 20 Loire Gestamp 18 16 14 Nidec Helmerding 12 260 Arku Feintool 21 10 Jier EBU 56 49 Mori Iron 8 Aida 6 556 Fagor Güdel 24 Simpac Seyi 33 645 World AP&T 80 4 238 269 114 87 2 114 95 Dieffenbacher Lasco 1,212 190 0
Slide 7: Order Intake 2018 by Region
ORDER INTAKE 2018 BY REGION ASIA AND CHINA STRONG, NORTH AMERICA AND EUROPE DECLINING EUROPE ASIA* NORTH AMERICA 80 471 178 CHINA (548) (34) (232) 466 (293) REST OF WORLD SOUTH AMERICA TOTAL 8 52 1,255 (2) (32) (1,141) * excl. China 2018 ( ) 2017 in Mil. € 7
Slide 8: Employees 2018 by Region
EMPLOYEES 2018 (INCL. APPRENTICES) BY REGION North America 420 4,344 China Europe 1,337 TOTAL South America 6,574 473 December 31, 2018 8
Slide 9: Schuler: Automotive Accounts for ~77% of the Business
SCHULER: AUTOMOTIVE ACCOUNTS FOR ~77% OF THE BUSINESS ORDER INTAKE FROM AUTOMOTIVE OEM, TIER 0.5 & AUTOMOTIVE SUPPLIERS (IN MIL. €) 992.3 968.5 970.1 SCHULER: SPLIT OF ORDER INTAKE 2018 867.0 824.0 365.4 411.7 383.7 Non- 460.0 Automotive: 387.0 23% 246.8 (285 Mil. €) 271.2 288.1 245.8 TOTAL: 1,255 M
Slide 10: Technologies & Products
TECHNOLOGIES & PRODUCTS 10
Slide 11: Press Technology for the Automotive Industry
PRESS TECHNOLOGY FOR THE AUTOMOTIVE INDUSTRY SYSTEM SOLUTIONS FOR MASS PRODUCTION PRESS LINES TRANSFER & PROGDIE PRESSES TRYOUT SYSTEMS 11
Slide 12: Press Technology for Lightweight Automotive Construction
PRESS TECHNOLOGY FOR LIGHTWEIGHT AUTOMOTIVE CONSTRUCTION INNOVATIVE SYSTEMS FOR ALL MANUFACTURING PROCESSES HOT STAMPING COLD FORMING/HYDROFORMING COMPOSITES FORMING 12
Slide 13: Solutions for the Supplier Industry
SOLUTIONS FOR THE SUPPLIER INDUSTRY AT HOME IN EVERY INDUSTRY AUTOMATIC BLANKING PRESSES SERVO PRESSES TWINSERVO PRESSES 13
Slide 14: Highspeed Technology for High Volumes
HIGHSPEED TECHNOLOGY FOR HIGH VOLUMES BATTERY DRIVES & GENERATORS MINTING 14
Slide 15: Financial Key Figures
FINANCIAL KEY FIGURES 15
Slide 16: Development of Financial Key Figures
DEVELOPMENT OF FINANCIAL KEY FIGURES SHARP DECLINE OF EARNINGS Sales (in Mil. €) Order Intake (in Mil. €) 1,178.5 1,200.0 1,174.2 1,233.1 1,212.1 1,193.7 1,199.5 1,141.0 1,255.1 1,015.7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 EBITDA (in Mil. €; in %) EBITA (in Mil. €; in %) 10.4% 11.5% 10.
Slide 17: Development of Sales
DEVELOPMENT OF SALES STRONG DECLINE IN SALES WITHOUT ACQUISITIONS in Mil. € CAGR w/o acquisitions -6.1% Total CAGR: +0.3% 1,200.0 1,233.1 1,212.1 1,174.2 0.0 118.6 179.1 217.8 Acquisitions of Yadon, AWEBA & Farina Schuler Group without acquisitions 1,200.0 1,055.6 1,054.0 994.3 2015 2016 2017 2018 1
Slide 18: Equity & Equity Ratio
EQUITY & EQUITY RATIO EQUITY RATIO AT A HISTORICALLY HIGH LEVEL Equity (in Mil. €) Equity ratio (in %) 498.4 495.0 39.0 40.1 438.4 34.3 32.2 369.1 28.7 322.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 18
Slide 19: Market Environment
MARKET ENVIRONMENT 19
Slide 20: Declining Forge & Press Market in Germany
DECLINING FORGE & PRESS MARKET IN GERMANY CONSUMPTION Press, € million Forge, € million -31% -10% 1,076 +5% -14% 782 -25% +28% 744 670 638 886 500 652 714 536 429 482 190 134 209 92 68 18 2013 2014 2015 2016 2017 2018 VDW, Schuler 20
Slide 21: Global Shift in Demand
GLOBAL SHIFT IN DEMAND │ VOLUME IN EUROPE CONTINUING TO SINK & EXPECTED TO SETTLE AT LOW LEVEL Actual order intake situation Expected order intake situation 5.4 % 5.8 % 22.3 % 27.0 % 29.6 % 33.5 % = Germany = Rest of Europe 18.0 % = North America (incl. Mexico) 18.8 % = Brazil 18.7 % 17.8 % = China
Slide 22: CORE – Schuler's Strategy Program
Our answer to the challenging market conditions is CORE – Schulers’ strategy program. The past 1.5 years have shown that the implementation of CORE is proving successful: In acquiring orders, opening up new markets, and rolling out new products in line with market requirements. CORE has prevented th
Slide 23: Strategy & Outlook
STRATEGY & OUTLOOK 23
Slide 24: CORE: How We Aim to Lead Schuler to New Strength
CORE │ HOW WE AIM TO LEAD SCHULER TO NEW STRENGTH FOCUS ON SCHULER’S CORE BUSINESS Build top-quality presses (performance, quality,…) State-of-the-art in innovation and technology Product development strictly aligned with customer and market needs Development of customer solutions offering b
Slide 25: CORE Strategy: Overview of Most Important Results
CORE STRATEGY OVERVIEW OF MOST IMPORTANT RESULTS Market environment remains difficult – strict implementation of CORE without alternative Customers buy innovations – over € 300 million additional order intake from new products since 2018 Product strategy, digitalization and localization as the
Slide 26: Product Strategy
FORMING THE FUTURE SCHULER "4 Member of the ANORITZ GROUP. PRODUCT STRATEGY 26
Slide 27: Product Strategy: Ambitious Targets
PRODUCT STRATEGY │ AMBITIOUS TARGETS FOR PRODUCT DEVELOPMENT, COST MANAGEMENT, ORDER INTAKE & PROFITABILITY Each division has a promising product strategy with ambitious targets for product development, cost management, order intake and profitability Realignment of the product portfolio to meet
Slide 28: Schuler Innovation Rate in New Machine Business
SCHULER INNOVATION RATE IN NEW MACHINE BUSINESS AT AROUND 30% NEW PRODUCTS MAKE A STRONG CONTRIBUTION TO ORDER INTAKE From the beginning of 2018 to the end of May 2019, the Schuler Innovation Rate (SIR) for the Automotive, Industry and Hydraulic divisions was around 30% on average For the first
Slide 29: Overview Product Strategy: How to Reach Our Targets
OVERVIEW PRODUCT STRATEGY HOW TO REACH OUR TARGETS Tapping the Attacking the mid-price biggest market segment Automotive Industry E-Mobility Service Participating Extension of in the growth Spare Part of this future Business market 29
Slide 30: Potential Automotive New Markets
POTENTIAL AUTOMOTIVE NEW MARKETS Traditional Schuler Customers Schuler Potential A-Segment High end B-Segment B-Segment “Good enough” C-Segment C-Segment Low budget Schuler 30
Slide 31: New Products: Example Press Line Next
NEW PRODUCTS WITH CONTRIBUTION TO ORDER INTAKE EXAMPLE: PRESS LINE NEXT Press Line Next as modular concept based on Servo 16 Servo presses and mechanical presses based on the same platform → standardization Modular principle thus implemented for the first time also for large presses Orders S
Slide 32: Market Served by Schuler's Industry Division
MARKET SERVED BY SCHULER‘S INDUSTRY DIVISION MARKET SIZE 2018 BY REGION OUR MAIN TOPICS Europe North America 800 mil. € Sales drive and targeted penetration of our 900 mil. € (25%) (28%) major market Tapping the mid-price segment – which is Total market size new for us – with marketable products
Slide 33: Further Examples for Market-Driven Product Innovations
FURTHER EXAMPLES FOR MARKET-DRIVEN PRODUCT INNOVATIONS LP16 MSP LASER BLANKING LINE 2.18 Development of hydraulic hot Cost-optimized servo press with Developed as a cost-effective stamping press LP16 for lightweight 200, 400 and 800 t of press force alternative to the classic LBL construction
Slide 34: E-Mobility Outlook 2030
E-MOBILITY OUTLOOK 2030 There is no alternative other than to gradually replace the combustion engine with technologies that enable the transport sector to play it's vital part in the control of global warming. 1. China remains by far the largest market for BEVs with sales of 775,000 in 2018. 2. Chi
Slide 35: Electromobility Is a Future Market for Schuler
ELECTROMOBILITY IS A FUTURE MARKET FOR SCHULER WE AIM TO PARTICIPATE IN THE GROWTH OF THIS MARKET MANUFACTURERS OF HYBRID AND ELECTRIC VEHICLES, AS WELL AS ONE BATTERY PRODUCER, Chassis ARE ALREADY USING SCHULER EQUIPMENT TO Body and structural parts PRODUCE COMPONENTS FOR ELECTRIC CARS: BMW produ
Slide 36: Growing Demand from Electric Vehicle Manufacturers: NIO
GROWING DEMAND FROM ELECTRIC VEHICLE MANUFACTURERS EXAMPLE: ORDER FROM ELECTRIC CAR MANUFACTURER NIO We notice a growing demand from electric vehicle manufacturers in Asia In March 2018, Schuler received an order from the Chinese electric vehicle start-up NIO Scope of delivery: servo press lin
Slide 37: Service: Extension of Spare Part Business
SERVICE │ EXTENSION OF SCHULER’S SPARE PART BUSINESS TARGETS & ACTIONS Continuous improvement of Service level to customers Increase spare parts portfolio Delivery time of standard parts below 48 h Quotation time < 2 days (average) Set-up an order processing center (“Auftragszentrum”) to i
Slide 38: Digitalization
FORMING THE FUTURE SCHULER "4 Member of the ANORITZ GROUP. DIGITALIZATION 38
Slide 39: Acceleration of Digitalization: More Agility
ACCELERATION OF DIGITALIZATION MORE AGILITY WHEN DEVELOPING DIGITAL PRODUCTS As a corporate function, the new MMS Product Home pools expert knowledge on the Machine Monitoring System from the divisions The aim is to achieve fast and cost-effective development of digital products and services T
Slide 40: Acceleration of Digitalization: Development Projects
ACCELERATION OF DIGITALIZATION EXAMPLES OF DEVELOPMENT PROJECTS & FEASIBILITY STUDIES Testing of cloud solutions for machine data on the Digital Twin of a German premium Automotive OEM and other customers “IIoT Challenge 50+” with the ambition of equipping 50 already installed Industry machines
Slide 41: Process Monitoring System
FURTHER EXAMPLES FOR MARKET-DRIVEN PRODUCT INNOVATIONS PROCESS MONITORING SYSTEM Real-time video and thermal imaging of the complete hot stamping line Continuous recording of process data (by sensors in the press, die, furnace and cooling units) and synchronizing Production conditions of each
Slide 42: Localization
FORMING THE FUTURE SCHULER "4 Member of the ANORITZ GROUP. LOCALIZATION 42
Slide 43: Realignment of Global Site Responsibilities
REALIGNMENT OF GLOBAL SITE RESPONSIBILITIES “LOCAL FOR LOCAL” Optimize Schuler’s global footprint Stronger use of existing plants in China and Brazil Increase value added in China Strengthen production in Brazil incl. expansion of local hydraulic business Germany remains Schuler’s core loc
Slide 44: Despite Initial Successes of CORE, Market Conditions Remain Difficult
Despite the initial successes of CORE, Schuler continues to be burdened by difficult market conditions and increasing competitive pressure. The effects are already visible in the deterioration in profitability due to lower margins and underutilization, particularly in the German plants. For this rea
Slide 45: Future Concept
FORMING THE FUTURE SCHULER "4 Member of the ANORITZ GROUP. FUTURE CONCEPT 45
Slide 46: What Our Future Concept Aims to Achieve by 2022
IMPROVEMENT IN SCHULER’S COMPETITIVE STANDING WHAT OUR FUTURE CONCEPT AIMS TO ACHIEVE BY 2022 Improve utilization of global growth opportunities by strengthening international sites and expanding product portfolio in line with market needs Create a sustainable perspective for the remaining busin
Slide 47: No Alternative to Localization for Schuler
SUSTAINED CHANGE IN MARKET CONDITIONS THEREFORE NO ALTERNATIVE TO LOCALIZATION FOR SCHULER Difficult market environment with sustained change in supply and demand conditions Increasing shift in demand away from Germany and Europe – especially toward Asia Around 80% of press line orders will co
Slide 48: Measures to Adapt Capacities in Germany
MEASURES TO ADAPT CAPACITIES IN GERMANY TO CHANGED COMPETITIVE CONDITIONS & COST PRESSURE Reduce internal manufacturing depth across all divisions Close new machine production at Göppingen site Field service and on-site assembly to stay in Göppingen Göppingen to remain head office with corre
Slide 49: Impact of Measures on Jobs in Germany
IMPACT OF MEASURES ON JOBS IN GERMANY The number of jobs in Germany will decline in total by around 500 At around 350 jobs, production will account for the overwhelming share of this reduction Implementation details are now being discussed with worker representatives 49
Slide 50: Reduction of Manufacturing in Germany by More Than 30%
REDUCTION OF MANUFACTURING IN GERMANY BY MORE THAN 30% GERMANY -32% Value added in Germany continuously reduced By 2022, the number of employees in 2,046 1,875 Germany will fall by 32% 1,722 1,390 2016 2017 2018 Projection 2022 50
Slide 51: Overview: Expected Savings & One-Off Costs
OVERVIEW EXPECTED SAVINGS & ONE-OFF COSTS Schuler expects total one-off costs of around € 85 million in 2019 In addition, Schuler will recognize impairment charges on its company investments of around € 25 million The first savings are expected as of the second half-year 2020 Together with t
Slide 52: Excursion: Restructuring Program 2018
EXCURSION: RESTRUCTURING PROGRAM 2018 AROUND 330 WERE ALREADY AFFECTED BY THE 2018 PROGRAM In 2018, a restructuring program was initiated with the aim of reducing COGS and OPEX The main drivers for cost reduction were process optimization, digitalization and adaptation of the organization In t
Slide 53: Outlook
OUTLOOK GOOD OPPORTUNITIES IF LOCALIZATION IS STRICTLY PURSUED Current economic downturn and structural change can be countered by Focusing on our core competencies Reducing the risk of underutilization Cost discipline Systematic utilization of our strengths in Germany and abroad 53
Slide 54: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 54