Andritz Ag · VIE:ANDR
Andritz — Investor Day (September 2019)
18 slides from Andritz's investor day presentation, Sep 17, 2019
Slide 1: ANDRITZ Fabrics & Rolls Company Overview
PULP & PAPER SERVICES ANDRITZ FABRICS & ROLLS COMPANY OVERVIEW SEPTEMBER 17, 2019
Slide 2: ANDRITZ Fabrics and Rolls: Xerium and ANDRITZ Kufferath merge
ANDRITZ FABRICS AND ROLLS Two strong brands, XERIUM and ANDRITZ Kufferath merge 200 YEARS EXPERIENCE 500 PATENTS TECHNOLOGY DRIVEN 2 / ANDRITZ CMD 2019 / ANDRITZ PULP & PAPER SERVICES / ANDRITZ FABRICS AND ROLLS
Slide 3: ANDRITZ Fabrics and Rolls - Innovative Products and Comprehensive Services
ANDRITZ FABRICS AND ROLLS - INNOVATIVE PRODUCTS AND COMPREHENSIVE SERVICES The new brand with decades of experience • In October 2018, ANDRITZ acquired Xerium Technologies, Inc., headquartered in Youngsville, North Carolina, USA. • ANDRITZ has been operating successfully in the pulp and paper indust
Slide 4: ANDRITZ Fabrics and Rolls – At a Glance
ANDRITZ FABRICS AND ROLLS – AT A GLANCE 2018 Sales $547 million Continuous Innovation • 3 R&D Centers (MC $347m / Rolls $200m) • ~500 Patents 2018 EBITA $75 million 14% of Sales ~3,300 Employees 30 Plants in 14 Countries Lean Six Sigma culture Direct Sales • Customers in 63 Countries Powerful Data A
Slide 5: Market Size and Growth
MARKET SIZE AND GROWTH Global Production by Product FY 2018 Growth % By Grade 2018 – 2023E CAGR 440 million tons (MT) 4% 3.2% 66 MT 2.2% 2.3% 15% 2% Containerboard 1.0% 0.8% 0.7% 37 MT 165 MT Boxboard 0% 9% 37% Kraft -2% -2.1% 19 MT Printing & Writing 5% -4% Newsprint Tissue -6% 81 MT -6.6% 18% 54 M
Slide 6: A Global Company with Facilities Located in Each of the Major Markets
A GLOBAL COMPANY WITH FACILITIES LOCATED IN EACH OF THE MAJOR MARKETS • 11 Machine Clothing Factories • 19 Roll Repair & Mechanical Service Centers • 14 Countries • ~3,300 Employees • Customers in 63 Countries North Europe 10 Plants America 1,456 Employees 9 Plants 796 Employees Asia-Pacific 5 Plant
Slide 7: A Global Leader in Fabrics, Felts & Rolls Technology for Pulp & Paper Machines
A GLOBAL LEADER IN FABRICS, FELTS & ROLLS TECHNOLOGY FOR PULP & PAPER MACHINES Fabric & Felt Products Roll Covers & Machine Services Roll Covers Forming Fabrics • Numerous types per machine • Captures the slurry • Recovered every 2-3 yrs. • Initial formation Press Felts Spreader Rolls • Conveys the
Slide 8: Product Sales by Group
PRODUCT SALES BY GROUP 63% MC (Fabrics) 37% (Rolls, Covers) Forming Press Dryer Engineered Shoe Press Roll Covers, SMART® Rolls, Fabrics Felts Fabrics Fabrics Belts Spreader Rolls, Mechanical Services 8 / ANDRITZ CMD 2019 / ANDRITZ PULP & PAPER SERVICES / ANDRITZ FABRICS AND ROLLS
Slide 9: Manufacturing Process – Press Felts
MANUFACTURING PROCESS – PRESS FELTS 1. Warping 2. Weaving 3. Pre-finishing 4. Batt Preparation 5. Needling 6. Seaming (seam felts) 7. Finishing 9 / ANDRITZ CMD 2019 / ANDRITZ PULP & PAPER SERVICES / ANDRITZ FABRICS AND ROLLS
Slide 10: Manufacturing Process – Roll Covers
MANUFACTURING PROCESS – ROLL COVERS 1. Mixing 2. Core Prep 3. Adhesion Additive 4. Extruding or Casting 5. Wrapping 6. Vulcanizing 7. Grinding 8. Venting/Drilling 10 / ANDRITZ CMD 2019 / ANDRITZ PULP & PAPER SERVICES / ANDRITZ FABRICS AND ROLLS
Slide 11: Nature of Product Use Provides Revenue Stability
NATURE OF PRODUCT USE PROVIDES REVENUE STABILITY • ANDRITZ products represent fraction of paper mill • Vast majority of ANDRITZ Machine Clothing revenue maintenance costs comes from consumable products with short lifespans • Value-add products that can have significant impact on • 94% of machine clo
Slide 12: Strategic Goal is to Align with Stable, Growing Segments of the Market
STRATEGIC GOAL IS TO ALIGN WITH STABLE, GROWING SEGMENTS OF THE MARKET % of Revenue from Steady, End Product Growth Emerging Country Growth Growing Market Segments Consumer packaging Asia 75% Tissue Latin America eCommerce boxes Clothing 68% Tissue converting Paper towels, napkins Sh
Slide 13: Competitive Landscape
COMPETITIVE LANDSCAPE Production Facilities by Segment • AFR Machine Clothing (MC) plants provide forming fabric, Company Machine Clothing Rolls press felts and dryer products for the global paper market. ANDRITZ 11 19 Albany is the market leader for MC with ANDRITZ, Voith and Valmet 3 18 AstenJohns
Slide 14: Competitive Overview
COMPETITIVE OVERVIEW Production Facilities by Geographic Region • ANDRITZ, compared to its key competitors, has the most balanced portfolio of global production facilities. • A $17 million project to significantly increase China machine clothing production will be initiated in 2020. ANDRITZ Valmet V
Slide 15: Strategy
STRATEGY • Stable and strong operating cash flow remains core • Leverage ANDRITZ presence and expertise to grow revenues cautiously • Continue to invest in R&D and utilize consolidated resources to drive best in class product portfolio • Integrate Kufferath into operating and commercial platforms •
Slide 16: Further Synergies
FURTHER SYNERGIES • AFR to utilize ANDRITZ pilot plants such as TIAC (Tissue pilot plant) to further develop and test best in class products. • AFR to develop new equipment and service product solutions together with Paper Machine Equipment department. Same is valid for Pulp Drying Equipment. • AFR
Slide 17: Growth Opportunities
GROWTH OPPORTUNITIES Projects in Progress • Expand presence and product portfolio for global Dryer Fabric market • Expand Kunshan facility to add capacity for Press Felt production and seaming of Forming Fabrics Under Evaluation • Expand existing Roll facilities as well as invest in new facilities i
Slide 18: ANDRITZ Fabrics & Rolls Company Overview
PULP & PAPER SERVICES ANDRITZ FABRICS & ROLLS COMPANY OVERVIEW SEPTEMBER 17, 2019