Andritz AG · VIE:ANDR
Andritz — Investor Presentation (November 2007)
31 slides from Andritz's investor presentation, November 2007
Slide 1: Company presentation November 2007
Company presentation November 2007
Slide 2: 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 m
Slide 3: Agenda
Agenda Company profile Growth drivers for Andritz’s Business Areas Summary and goals Appendix: Results for Q3 2007 by Business Area Slide No. 3
Slide 4: A world market leader in most business areas
A world market leader in most business areas Production systems and services for: Feed and Biofuel: 4%* Environment Andritz Group Sales: and Process: ~ 3 bn EUR 12%* Pulp and Rolling Mills Paper: and Strip 45%* Processing Lines: 15%* Hydro Power: 24%* * Share of Sales based on pro-forma 2006 figures
Slide 5: Global company with global customers
Global company with global customers ANDRITZ Headquarters Graz/Austria Order Intake by region (Q1-Q3 2007) Employees by region (30.09.2007) Asia (excl. Others: Germany: Austria: China): 2% 17% 24% 6% China: 12% Total Others: Total Order workforce: North 15% South Intake Q1-Q3/07: 11,200 America: Ame
Slide 6: Strategy
Strategy Continued average sales growth of at least 10% p.a. Organic growth through intensive R&D Complementary acquisitions Global organization Expansion of service business Cost leadership Slide No. 6
Slide 7: Complementary acquisitions
Complementary acquisitions Rolling Mills and Pulp & Environment and Strip Processing Feed and Biofuel Paper Process Lines 1990 Sprout-Bauer 1997 Sundwig 1992 TCW 1995 Jesma-Matador 1992 Durametal 1998 Thermtec Engineering 2000 UMT 1994 Kone Wood 2000 Kohler 1996 Guinard 2005 Chemes Strojarne 1998 Kv
Slide 8: Continuation of Group growth in 2007 and 2008
Continuation of Group growth in 2007 and 2008 Andritz Group Sales in MEUR CAGR 1998-2007: For 2007, Group Sales are 3500 expected to increase by +19% 3200 20% compared to 2006; (12% p.a. organic expansion, most of the Sales increase 7% p.a. acquisitive growth) 2710 comes from first-time consolidat
Slide 9: Highlights in Q3 2007
Highlights in Q3 2007 Order Intake and Order Backlog Group Order Intake in Q3 2007, at 614.4 MEUR, down by 21.8% compared to reference Quarter of last year (Q3 2006: 785.8 MEUR); low Order Intake in Pulp and Paper compared to high level of Q3 2006 Order Backlog as of 30.09.2007, at 3,722.4 MEUR,
Slide 10: Results for Q3 2007 and Q1-Q3 2007 at a glance
Results for Q3 2007 and Q1-Q3 2007 at a glance Andritz Group in MEUR (IFRS)* Q1-Q3 2006 Q1-Q3 2007 +/- Q3 2006 Q3 2007 +/- Order Intake 2,062.9 2,651.9 +28.6% 785.8 614.4 -21.8% Order Backlog (as of end of period) 3,561.9 3,722.4 +4.5% 3,561.9 3,722.4 +4.5% Sales 1,702.6 2,299.6 +35.1% 735.2 762.6 +
Slide 11: Solid balance sheet structure
Solid balance sheet structure Balance Sheet of the Andritz Group as of 30.09.2007 (in MEUR) No major changes of the balance sheet structure com- 2,504 2,504 pared to 31.12.2006 461 Equity Fixed assets 404 13 Minorities Net liquidity as of 30.09.2007, Goodwill 227 375 Provisions at 305.9 MEUR, at
Slide 12: Solid performance of the Andritz share
Solid performance of the Andritz share 55 2004: 2005: 2006: Q1-Q3 07: Shareholder structure: Certus 50 +53% +63% +75% +20% (CEO) 45 26% 40 Free float 35 Manage- 72% 30 ment 2% 25 20 15 Andritz 10 Broad Research Coverage: 5 ATX 0 2001 2002 2003 2004 2005 2006 2007 ANDRITZ Slide No. 12
Slide 13: Agenda
Agenda Company profile Growth drivers for Andritz’s Business Areas Summary and goals Appendix: Results for Q3 2007 by Business Area Slide No. 13
Slide 14: Many pulp mill projects based on …
Many pulp mill projects based on … High project activity for new pulp mills/expansion of existing lines to continue during the next few years Æ In total, approximately 15 million tons of new pulp mill capacity are expected to be decided until 2012 Major planned or announced new pulp mill/expansion p
Slide 15: … fast growing plantations …
… fast growing plantations … Approx. 150,000 - 200,000 ha of plantations needed for pulp mill with 1 million tons capacity Source: J. Pöyry Slide No. 15
Slide 16: … and natural wood resources
… and natural wood resources Russia holds the largest resource of unutilized softwood and hardwood Source: J. Pöyry Slide No. 16
Slide 17: Hydro Power: high project activity worldwide
Hydro Power: high project activity worldwide Andritz VA TECH HYDRO is a global leading supplier of turnkey electromechanical equipment and services for hydropower plants with a leading position in the growing market of plant refurbishment Simon Bolivar rehabilitation project, Venezuela Integrati
Slide 18: Hydro Power: strong development of VA TECH HYDRO
Hydro Power: strong development of VA TECH HYDRO Order Intake of VA TECH HYDRO developed substantially above expectations Given the high Order Backog of over 1.7 bn EUR of VA TECH HYDRO, Sales of the Hydro Power Business Area could approach 1 bn EUR in 2008 already MEUR 860 World market shares f
Slide 19: Installed Capacity: Big replacement cycle underway
Big replacement cycle underway The predominant markets for rehabilitation and upgrades are Europe and North America. World Average Asia 25% 50% 192,000 MW Installed Capacity North America 65% 159,000 MW Western Europe 70% 154,000 MW Central/South America 15% 125,000 MW Eastern Europe 87,000 MW 55% M
Slide 20: Andritz Group: supplier of renewable energy products
Andritz Group: supplier of renewable energy products Feed and Biofuel Environment Feed and Biofuel and Process Systems for production of biofuel pellets; Components for bio-ethanol Approximately 35-40% of Andritz‘s Rolling Mills and Strip Sales are derived from Processing renewable energy products L
Slide 21: Good project activity for Rolling Mills and Strip Processing Lines
Good project activity for Rolling Mills and Strip Processing Lines Overall continued good project activity with focus on: China: - Long-term modernization of domestic steel industry targeted - Continued expansion of stainless steel capacities due to fast growing demand; market share of Andritz: ov
Slide 22: Environment and Process - excellent growth prospects
Environment and Process - excellent growth prospects Andritz offers complete systems for solid/liquid separation (centrifuges, thermal driers) for various types of sludges from municipalities and industries Directives and stringent environmental regulations as long- term major growth drivers, es
Slide 23: Feed & Biofuel – continued strong organic growth
Feed & Biofuel – continued strong organic growth Andritz is a world market leader for plants to produce animal feed and biofuel pellets out of materials, such as wood, peat, and agricultural by- products. Continued strong organic growth of Order Intake; main contributor is wood pelleting equipme
Slide 24: Agenda
Agenda Company profile Growth drivers for Andritz’s Business Areas Summary and goals Appendix: Results for Q3 2007 by Business Area Slide No. 24
Slide 25: Summary and goals
Summary and goals Assuming an overall solid development of the global economy, Andritz expects good project activity in all Business Areas to continue Continuation of strategy to acquire complementary businesses/companies in all Business Areas Focus on improving the Group EBITA towards 7% Ba
Slide 26: Agenda
Agenda Company profile Growth drivers for Andritz’s Business Areas Summary and goals Appendix: Results for Q3 2007 by Business Area Slide No. 26
Slide 27: Pulp and Paper
Pulp and Paper Market: continued good project activity for both new plants and modernizations of existing plants, with focus on South America, Australia, China, and Europe Low Order Intake compared to high level in Q3 2006; no large order awarded during Q3 2007 Sales, Earnings, and margins up
Slide 28: Hydro Power
Hydro Power Market: continued high project activity for new hydropower equipment, especially in emerging markets; strong market for replacement of existing hydropower installations in Europe and North America Solid development of Order Intake in all product segments; strong Order Intake for cent
Slide 29: Rolling Mills and Strip Processing Lines
Rolling Mills and Strip Processing Lines Market: continued good project activity for carbon steel and stainless steel equipment Order Intake in Q3 2007 practically at same high level as in Q3 2006 Sales and Earnings down, mainly due to the fact that many large orders were in their initial proc
Slide 30: Environment and Process
Environment and Process Market: good project activity for sewage sludge dewatering equipment, especially in Asia and the USA Order Intake in Q3 2007 up compared to Q3 2006, mainly due to continued strong Order Intake in the Separation Technologies Division; unchanged slow market for thermal proc
Slide 31: Feed and Biofuel
Feed and Biofuel Market: continued high project activity for animal feed equipment, mainly in Eastern Europe, Russia, and Central and South America; strong investment activity for new wood pelleting systems, particularly in the USA and Europe Continued strong organic growth of Order Intake, main