Andritz AG · VIE:ANDR
Andritz — Q1-Q3 2009 Earnings Presentation
34 slides from Andritz's earnings presentation, November 2009
Slide 1: The ANDRITZ Group Company presentation – November 2009
The ANDRITZ GROUP Company presentation – November 2009
Slide 2: Contents
Company presentation Contents Business profile and results Q1-Q3 2009 Major developments in Q1-Q3 2009 and market expectations by business area Long-term goals Summary 2 Company presentation – November 2009
Slide 3: A world market leader in most business areas
The ANDRITZ GROUP A world market leader in most business areas ~50% of ~25% of ~10% of ~10% of Group’s ~5% of Group’s Group’s Group’s order intake. Group’s order intake. order intake. order intake. order intake. Electro- Systems for Systems for Systems for mechanical Systems for
Slide 4: Strong growth through organic expansion and acquisitions
Strong growth through organic expansion and acquisitions CAGR 1999-2008: +21% p.a. HYDRO METALS 2006 VA TECH HYDRO 1997 Sundwig 2007 Tigép 1998 Thermtec 2008 GE Hydro business 2000 Kohler 2008 GEHI (JV) 2002 SELAS SAS . a. th) Furnace Div. PULP & PAPER 2004 Kaiser p 1990 Sprout-Bauer 2005 Lynson + 2
Slide 5: Long-term sales development
Long-term sales development HYDRO and PULP & PAPER as main growth drivers All business areas with CAGR >10% during Share of sales by business area the last ten years. 1999 2008 CAGR HYDRO 5% 33% +51% Strongest growth came from HYDRO business PULP & PAPER 56% 37% +17% area. METALS 20% 16% +17% EN
Slide 6: Global presence
Global presence Strong base in Europe, strong growth in emerging markets Employees 1999-2008 Employees 1999-2008: Employees by region 1999 vs. 2008: more than tripled strongest growth in emerging markets stable base in Europe 1% 1% 7% ~13,700 28% 9% 7% 1999: 8 Others 2008: 178 +170 12% Asia (excl. 1
Slide 7: Balance sheet structure
Balance sheet structure Strong increasing cash position Total assets increased to 3,216 MEUR as of Sept. 30, 2009 (Dec. 31, 2008: 3,086 MEUR). Substantial increase of gross cash position to 1,056 MEUR as of Sept. 30, 2009 (822 MEUR as of Dec. 31, 2008); net liquidity increased to 660 MEUR as of
Slide 8: Q1-Q3 2009 and Q3 2009 results at a glance
Q1-Q3 2009 and Q3 2009 results at a glance Q1-Q3 Q1-Q3 Q3 Q3 KEY FIGURES Unit 2009 2008 +/- 2009 2008 +/- 2008 Order intake MEUR 2,554.9 2,900.4 -11.9% 842.2 771.7 +9.1% 3,705.3 Order backlog (as of end of period) MEUR 4,514.5 4,558.1 -1.0% 4,514.5 4,558.1 -1.0% 4,277.4 Sales MEUR 2,330.2 2,538.9 -8
Slide 9: Group sales
Group sales Good development in HYDRO, decrease in all other business areas 2,538.9 Q1-Q3 : -8% 2,330.2 2,330.2 Q3: Q3: HYDRO: +24% vs. Q1-Q3 2008 888.9 -15% Q3: 756.1 Q2: Q2: - Q2: 13% PULP & PAPER: -32% vs. Q1-Q3 2008 899.1 784.0 METALS: -15% vs. Q1-Q3 2008 Q1: Q1: 750.9 Q1: +5% 790.1 ENVIRONMENT
Slide 10: Group restructuring to cope with weak global economy
Group restructuring to cope with weak global economy Major cost savings expected for 2010 Restructuring measures mainly in PULP & PAPER; selective adjustments in the other business areas. Restructuring expenses Q4 2008: Total expected cost savings p.a.*: Thereof cost savings in 2009: ~14 MEUR ~20 ME
Slide 11: Earnings
Earnings Solid profitability in Q3 2009 despite decline in sales EBITA margins of HYDRO, METALS and ENVIRONMENT & PROCESS in Q3 2009 increased compared to Q3 2008. Weak development in PULP & PAPER due to continued low business volume in the capital business. FEED & BIOFUEL substantially down d
Slide 12: Order intake
Order intake Strong order intake in HYDRO, down in all other business areas 2,900.4 Q1-Q 3: -1 2% 2,554.9 2,554.9 Q3: 771.7 % Q3: +9 Q3: HYDRO: +36% vs. Q1-Q3 2008 842.2 Q2: Q2 933.0 : -2 2% Q2: 731.3 PULP & PAPER: -37% vs. Q1-Q3 2008 Q1: Q1 : -18% Q1: 1,195.7 METALS: -51% vs. Q1-Q3 2008 981.4 ENVIR
Slide 13: Order intake: quarterly order intake stabilized
Order intake Quarterly order intake stabilized Order intake (MEUR) Q3 2009 vs. Q3 2008 by business area Q3 2008 Q3 2009 +/- ANDRITZ GROUP 772 842 +9% HYDRO 243 324 +33% PULP & PAPER 244 302 +24% METALS 172 116 -32% ENVIRONMENT & PROCESS 76 79 +5% FEED & BIOFUEL 37 21 -43% Group order intake Q4 2007-
Slide 14: Order intake and sales by region
Order intake and sales by region Well balanced geographical exposure Europe remains the Group’s most important market in terms of sales and order intake. Emerging markets account for more than 50% of order intake. Order intake by region Sales by region Q1-Q3 2009 (Q1-Q3 2008) in % Q1-Q3 2009 (Q1
Slide 15: Order backlog
Order backlog Good in HYDRO, declining in all other business areas 4,558 4,515 4,277 3,843 HYDRO: +20% vs. Q1-Q3 2008 3,397 1,696 1,439 1,054 PULP & PAPER: -33% vs. Q1-Q3 2008 904 METALS: -19% vs. Q1-Q3 2008 ENVIRONMENT & PROCESS: -14% vs. Q1-Q3 2008 FEED & BIOFUEL: -35% vs. Q1-Q3 2008 2002 2003 200
Slide 16: HYDRO
HYDRO Continuing good development Market: continuing high project activity worldwide with modernization of existing plants concentrated on Europe and North America; new hydropower plant projects mainly focused on emerging markets, especially Asia and South America. Continuing strong order intake
Slide 17: PULP & PAPER
PULP & PAPER Still impacted by weak capital business Market: global pulp market developed solidly with increasing demand from Asia, especially from China. Project activity remained at a low level during Q3 2009, both for new pulp mills and for rebuilds of existing plants; service business relative
Slide 18: METALS
METALS Continued weak market conditions Market: project activity remained weak; some signs of stabilization during Q3 2009. Solid order intake in Q3 2009, but below the very high reference value of last year. Despite decline in sales, EBITA margin increased in Q3 2009. Q1-Q3 Q1-Q3 KEY FIGURES
Slide 19: ENVIRONMENT & PROCESS
ENVIRONMENT & PROCESS Stable sales development, order intake slightly up Market: solid project activity for municipal solid/liquid separation equipment; relatively low investment activity for industrial applications; demand for biomass drying systems stable. Order intake in Q3 2009 slightly up.
Slide 20: FEED & BIOFUEL
FEED & BIOFUEL Unchanged difficult market conditions Market: project activity in the animal feed sector continued to be impacted by the global economic and financial crisis; low project activity in special feed; reasonable project activity within the biomass/wood pelletizing market, although also
Slide 21: Contents
Company presentation Contents Business profile and results Q1-Q3 2009 Major developments in Q1-Q3 2009 and market expectations by business area Long-term goals Summary 21 Company presentation – November 2009
Slide 22: HYDRO: Solid market with excellent long-term outlook
HYDRO Solid market with excellent long-term outlook Q1-Q3 2009 High project activity worldwide: modernization of existing plants in Europe and North America; new hydropower plants mainly in emerging markets. Good development of order intake in all divisions, including the pumps and turbo generat
Slide 23: PULP & PAPER: unchanged strong long-term drivers
PULP & PAPER Despite current downturn, unchanged strong long-term drivers Q1-Q3 2009 Low project activity in the capital business; service less affected. Order intake substantially below last years’ reference level; order from China (Chenming, 160 MEUR) booked in Q3 2009. Margins impacted by r
Slide 24: METALS: Bottom appears to have been reached
METALS Bottom appears to have been reached Q1-Q3 2009 Low project activity worldwide; however some signs of stabilization. Order intake in Q3 2009, at 116.4 MEUR, was solid; orders mainly from emerging markets (China, Brazil). Earnings and profitability in Q3 up despite decline in sales. Curre
Slide 25: ENVIRONMENT & PROCESS: Stable municipal and biomass drying businesses
ENVIRONMENT & PROCESS Stable municipial and biomass drying businesses Q1-Q3 2009 Good project activity in municipal business (China, USA); lower demand in some industrial segments. Order intake in Q3 slightly up, with solid demand from municipalities; demand from industrials moderate, but stabil
Slide 26: FEED & BIOFUEL: Feed expected to recover
FEED & BIOFUEL Feed expected to recover, good pipeline for biomass projects Q1-Q3 2009 Low project activity in animal feed with projects delayed due to funding restrictions; reasonable project activity for biomass/wood pelletizing equipment. Order intake down compared to Q1-Q3 2008, weak develop
Slide 27: Contents
Company presentation Contents Business profile and results Q1-Q3 2009 Major developments in Q1-Q3 2009 and market expectations by business area Long-term goals Summary 27 Company presentation – November 2009
Slide 28: Sales target 4.5 bn. Euro
Sales target 4.5 bn. Euro sales goal delayed due to financial crisis Confident to continue growth: Confirmation of goal to increase sales by 10% p. a. on average. CAGR 1999-2008: +21% p. a. (thereof 13% p. a. organic growth). However, 4.5 bn. goal delayed due to financial crisis. 4,500 Range d
Slide 29: EBITA margin target 7% over the cycle
EBITA margin target 7% over the cycle EBITA margin H1 2009: Margin development 5.1% excl. restructuring expenses 3,610 depends on overall 3.6% incl. restructuring expenses economy and on 3,283 M&A success. 2,710 8.0 7.0 6.3 6.4 6.5 6.1 6.1 6.3 5.4* ? 5.2 5.3 5.1 4.7 1,744 4.8 3.5 1,481 1,319 1,2
Slide 30: Target for renewable energy sales
Target for renewable energy sales Long-term more than 50% of Group sales 5000 60 ANDRITZ’s renewable 54% 4,500 4500 >50% energy products: 49% 46% 50 Equipment for hydro-4000 3,610 power stations. 3500 3,283 32% 40 3000 2,710 Recovery boilers/ power boilers for the 2500 2,250 30 21% pulp and pape
Slide 31: Dividend
Dividend Sustainable dividend payout ratio on top of strong sales growth Dividend per share (EUR) 1.10 1.00 0.75 0.50 0.35 0.23 0.25 2002 2003 2004 2005 2006 2007 2008 2009 2010 E Payout ratio ~50.0% 44.1% 44.2% 38.3% 40.3% 34.3% 32.6% 32.5% 2002 2003 2004 2005 2006 2007 2008 2010E Dividends 2002-20
Slide 32: Contents
Company presentation Contents Business profile and results Q1-Q3 2009 Major developments in Q1-Q3 2009 and market expectations by business area Long-term goals Summary 32 Company presentation – November 2009
Slide 33: Summary
Summary Solid business development despite crisis due to broad diversification, strong cash position and solid balance sheet structure. Implemented restructuring measures to adjust cost structure to lower business volume and to enhance future competitiveness. Business development impacted by e
Slide 34: Disclaimer
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 ma