Andritz Ag · VIE:ANDR
Andritz — Non-Deal Roadshow (November 2017)
30 slides from Andritz's roadshow presentation, November 2017
Slide 1: The ANDRITZ GROUP Company presentation November 2017
The ANDRITZ GROUP Company presentation November 2017
Slide 2: Contents
Contents 1 ANDRITZ GROUP overview 2 Results Q1-Q3/Q3 2017 / update on business areas 3 Outlook and financial targets
Slide 3: The ANDRITZ GROUP Overview
The ANDRITZ GROUP Overview ANDRITZ is a globally leading supplier of plants, equipment, and Sales by region 2016 (%) services for hydropower stations, the pulp and paper industry, the metal-working and steel industries, and solid/liquid separation in the municipal and industrial sectors. Headquarter
Slide 4: Company profile: A global market leader with four business areas
Company profile A global market leader with four business areas Product offerings: Product offerings: Product offerings: Product offerings: electromechanical equipment for presses for metal equipment for equipment for production of all types of forming (Schuler); solid/liquid separation hydropower p
Slide 5: Strengthening of market position
Strengthening of market position Growth through organic expansion and acquisitions Acquisitions by business area since 1990 Compound Annual Growth Rate (CAGR) of Group sales 2006-2016: +8% p. a. (thereof approximately half organic growth) HYDRO 2012 AES 2006 VA TECH HYDRO 2013 MeWa 2007 Tigép 2015 E
Slide 6: Results Q1-Q3/Q3 2017 / update on business areas
Contents 1 ANDRITZ GROUP overview 2 Results Q1-Q3/Q3 2017 / update on business areas 3 Outlook and financial targets
Slide 7: Group sales in Q1-Q3 2017 slightly down
Group sales in Q1-Q3 2017 slightly down Decrease in Q3 2017 mainly due to PULP & PAPER and HYDRO SALES (MEUR) SALES by business area (MEUR) -2% Q1-Q3 Q1-Q3 +/- Q3 2017 Q3 2016 +/- 4,239 2017 2016 4,144 HYDRO 1,072 1,180 -9% 347 372 -7% PULP & PAPER 1,474 1,534 -4% 483 554 -13% Q3: Q3: 1,478 -8% 1,36
Slide 8: Very favorable development of service business
Very favorable development of service business Increase in all four business areas SHARE OF SERVICE SALES of Group and business area sales (%) Q1-Q3 2016: ANDRITZ GROUP Q1-Q3 2017: +200 bps 32% 34% Q1-Q3 2016: HYDRO Q1-Q3 2017: Q1-Q3 2016: METALS Q1-Q3 2017: +200 bps +200 bps 27% 29% 22% 24% Q1-Q3 2
Slide 9: Group order intake in Q1-Q3 2017 slightly up
Group order intake in Q1-Q3 2017 slightly up, however decline in Q3 due to HYDRO and METALS (Schuler) ORDER INTAKE (MEUR) ORDER INTAKE by business area (MEUR) +2% Q1-Q3 Q1-Q3 +/- Q3 2017 Q3 2016 +/- 2017 2016 4,037 4,113 HYDRO 939 1,061 -11% 425 470 -9% PULP & PAPER 1,552 1,351 +15% 427 435 -2% Q3:
Slide 10: Earnings down practically in line with sales decline
Earnings down practically in line with sales decline Profitability at solid level EBITA (MEUR) Q3 2017: EBITA in Q3 2017 declined practically in line with sales to 98.9 MEUR (Q3 2016: 109.1 MEUR). Profitability, at 7.2%, remained at solid level (Q3 2016: 7.4%). +5% Q1-Q3 2017: 306.2 292.1 Desp
Slide 11: Key figures Q3/Q1-Q3 2017 at a glance
Key figures Q3/Q1-Q3 2017 at a glance Q1-Q3 Q1-Q3 Unit +/- Q3 2017 Q3 2016 +/- 2016 2017 2016 Order intake MEUR 4,112.5 4,036.5 +1.9% 1,341.2 1,470.1 -8.8% 5,568.8 Order backlog (as of end of period) MEUR 6,650.8 7,043.6 -5.6% 6,650.8 7,043.6 -5.6% 6,789.2 Sales MEUR 4,143.6 4,239.3 -2.3% 1,364.6 1,
Slide 12: Contents: HYDRO
Contents 1 ANDRITZ GROUP overview Results Q1-Q3/Q3 2017 / update on business areas HYDRO 2 PULP & PAPER METALS SEPARATION 3 Outlook, Group strategy, and long-term goals
Slide 13: HYDRO: Unchanged challenging market environment
HYDRO: Unchanged challenging market environment with only a few medium-sized projects awarded Modernizations/rehabilitations New hydropower plants Unchanged, difficult market conditions Some new projects in impacted by low electricity and energy emerging markets, particularly prices, especially in E
Slide 14: Update on Hydro capacity adjustments and strategy
Update on Hydro capacity adjustments and strategy Target is to increasingly shift resources to China and India to cover and serve growing Asian and Chinese markets locally In line with this strategy and based on overall low market activity several capacity adjustment measures have been taken dur
Slide 15: Conclusions regarding hydro
Conclusions regarding hydro ANDRITZ: Generally low market share (~15%) in large hydro projects goal 20% Re-entry in China in pumped storage achieved potential for future orders Further growth of pumps business targeted Business volume potential for ANDRITZ HYDRO: Average global hydro e
Slide 16: Contents: PULP & PAPER
Contents 1 ANDRITZ GROUP overview Results Q1-Q3/Q3 2017 / update on business areas HYDRO 2 PULP & PAPER METALS SEPARATION 3 Outlook, Group strategy, and long-term goals
Slide 17: PULP & PAPER: Solid market environment continued
PULP & PAPER Solid market environment continued Paper Satisfactory market development for tissue and packaging equipment continued. Pulp Satisfactory project and investment activity, Competition particularly for modernization of existing Stable competitive pulp mills. No order awards for greenfield
Slide 18: PULP & PAPER: Good project pipeline for greenfield pulp mills
PULP & PAPER Good project pipeline for greenfield pulp mills USA: Mozambique: Owner – project Capacity/a.* Planned start-up Owner Capacity/a.* Planned start-up SUN BIO Arkansas 0.6 2020 Portucel 1.5 2022 et seq. Chile: Owner – project Capacity/a.* Planned start-up Finland: Arauco – MAPA 1.6 2021 Own
Slide 19: Contents: METALS
Contents 1 ANDRITZ GROUP overview Results Q1-Q3/Q3 2017 / update on business areas HYDRO 2 PULP & PAPER METALS SEPARATION 3 Outlook, Group strategy, and long-term goals
Slide 20: METALS: Unchanged weak metalforming market
METALS: Unchanged weak metalforming market Recovery of METALS processing market Metalforming Unchanged low investment activity in metalforming with only a few large METALS processing orders placed for press lines; Further increase in project activity - favorable development of Yadon however from ver
Slide 21: Update on Schuler restructuring program
Update on Schuler restructuring program 2015: 78 MEUR provisions for restructuring (thereof 18 MEUR released in 2016) main focus on reduction of production capacities to avoid cost under-absorption in times of lower order intake Closure of inhouse production of Waghäusel and Weingarten All c
Slide 22: Conclusions regarding Schuler
Conclusions regarding Schuler Market: Continued growth of light-weight vehicles produced E-mobility will reduce the total number of car body parts, however very limited impact on Schuler expected New steel types require new press and die technologies opportunity for Schuler Schuler: Still
Slide 23: Contents: SEPARATION
Contents 1 ANDRITZ GROUP overview Results Q1-Q3/Q3 2017 / update on business areas HYDRO 2 PULP & PAPER METALS SEPARATION 3 Outlook, Group strategy, and long-term goals
Slide 24: SEPARATION: Improved project and investment activity
SEPARATION: Improved project and investment activity for solid/liquid separation equipment Municipal Feed and biomass pelleting Investment activity at good levels, Low project activity. mainly in developed markets. Industrial Competition Good project activity in mining and Unchanged market environme
Slide 25: Contents
Contents 1 Company profile 2 Update on business areas 3 Outlook, financial targets
Slide 26: ANDRITZ GROUP growth opportunities
ANDRITZ GROUP growth opportunities Aftermarket: Digital business Metris IoT solutions and Metris spare part catalog (eShop) Mill maintenance O & M (HYDRO) Grow METALS aftermarket Capital: HYDRO China Schuler B-segment automotive/non-automotive SEPARATION 26 Company presentation N
Slide 27: Unchanged guidance for 2017
Unchanged guidance for 2017 Slight decrease in sales, but at least same profitability as in 2016 Project activity for modernizations and new hydropower Continued solid market environment in pulp, stations to remain at subdued level especially for modernization of existing plants; no greenfield o
Slide 28: Target to continue long-term profitable growth
Target to continue long-term profitable growth Goal: further improve profitability with top-line sales growth Sales Sales Sales Sales Growth rates include CAGR: CAGR: CAGR: CAGR: organic growth and 12.1% 16.4% 13.3% 5-8% p.a. acquisitions 7.0-8.0% 6.0% 6.2% Average EBITA margin 5.3% 2000-2004 2005-2
Slide 29: Update on long-term EBITA margin goals per business area
Update on long-term EBITA margin goals per business area HYDRO PULP & PAPER Long-term Long-term goal: goal: 8.5-9.0% 8.7 8.7 8.6 8.8 7.0-8.0% 8.3 8.1 8.3 7.9 CONFIRMED NEW: 7.3 7.0 6.9 5.9 5.2 >8% 2012 2013 2014 2015 2016 Q1-Q3 2012 2013 2014 2015 2016 Q1-Q3 2016/2017 2016/2017 -1.8 METALS SEPARAT
Slide 30: Legal Disclaimer
Legal Disclaimer All data, information, statements, photographs, and graphic illustrations contained in this presentation are without any obligation to the publisher and raise no liabilities to ANDRITZ AG or any affiliated companies, nor shall the contents in this presentation form part of any sales