Andritz AG · VIE:ANDR
Andritz — Investor Day (October 2007)
41 slides from Andritz's investor day presentation, October 2007
Slide 1: Capital Market Days - China 2007
Capital Market Days - China 2007 Headline: Arial bold, (28-)32 pt, black presented by G. Schmölzer Slide No. 1
Slide 2: Andritz Foshan locations
Andritz Foshan locations FOSHAN Investor Days China – October 2007 Slide No. 2
Slide 3: Andritz Foshan locations
Andritz Foshan locations Andritz Industrial Park - Foshan Sanshui District (ATC) Andritz Wolfensberger Special Alloy Foundry (AnWo) Andritz Technologies Ltd. (ATC) Andritz-Kenflo Foshan Pump Co. Ltd. (AKFP) Investor Days China – October 2007 Slide No. 3
Slide 4: Agenda
Agenda 1. Andritz Kenflo 2. Andritz Technologies Investor Days China – October 2007 Slide No. 4
Slide 5: Andritz-Kenflo Foshan Pump Co. Ltd. (AKFP)
Andritz Foshan locations Andritz-Kenflo Foshan Pump Co. Ltd. (AKFP) Investor Days China – October 2007 Slide No. 5
Slide 6: Andritz Kenflo
Andritz Kenflo • Introduction • Business development • Development of headcount Investor Days China – October 2007 Slide No. 6
Slide 7: Andritz - Kenflo
Andritz - Kenflo • Investment: US$ 2,400,000 • AAG Share: 60% • KENFLO: 40% • Products: Stock pumps, MC pumps, other ANDRITZ & KENFLO’S • Prod. Scale: 1,000 – 2,000 Pumps / Year • Employees: 20 – 90 planned (<5 a) • JV Contract: 20 years • Technology: 10 years • Area (m²): Land 4,500 m², Shop: 2,600
Slide 8: Business development: CAPEX / EBITA
Business development CAPEX / EBITA 30 25 20 M. RMB 15 10 5 0 1999 2000 2001 2002 2003 2004 2005 2006 Budget 2007 Total investments EBITA * * after allocation of expat costs Capex: additions to tangible and intangible assets Investor Days China – October 2007 Slide No. 8
Slide 9: Business development: Return on Equity
Business development Return on Equity 60% 50% 40% 30% 20% 10% 0% 1999 2000 2001 2002 2003 2004 2005 2006 Investor Days China – October 2007 Slide No. 9
Slide 10: Development of headcount – Andritz Kenflo
Development of headcount – Andritz Kenflo 200 180 179 160 157 140 145 120 127 106 100 101 94 80 83 71 60 49 54 40 42 20 0 Dec-04 Dec-05 Dec-06 YTD Sep 2007 TOTAL WORKERS TOTAL SALARIED GRAND TOTAL Investor Days China – October 2007 Slide No. 10
Slide 11: Andritz Technologies Ltd.
Andritz Technologies Ltd. • Overview • Andritz China operations • Future plans and challenges Investor Days China – October 2007 Slide No. 11
Slide 12: Andritz Technologies Ltd.
Andritz Technologies Ltd. • Overview • Andritz China operations • Future plans and challenges Investor Days China – October 2007 Slide No. 12
Slide 13: Andritz Foshan locations
Andritz Foshan locations Andritz Technologies Ltd. (ATC) Investor Days China – October 2007 Slide No. 13
Slide 14: Overview
Overview • Introduction • Business development • Development of headcount Slide No. 14
Slide 15: Andritz Technologies
Andritz Technologies Registered Capital: 5,900,000 EUR AAG Share: 100% Year of Establishment: 2002 Products: entire Andritz product range Prod. Scale: 500,000 production hours Employees: 627 (Aug. 2007) Area (m²): Land: 26,000 m², Shop: 11,000 m² Office: 3,200 m² Tax payments: 30 M.RMB (2006), 10 M.
Slide 16: Vision
Vision State-of-the-art The drivers for the above average growth are: Andritz Technologies Cost supply chain Ltd. (ATC) China as a Innovation & leadership management company of the global quality Andritz group shall generate its growth through providing contributions to China and the SEA markets. AT
Slide 17: Organization
Organization President G. Schmölzer HR Han Xuebing QM L. Pestel Expats Chinese IT Zhu Jingsong Controller Wen Jing GM - PF GM - PS GM - PEW GM - PM GM - PD GM - ES GM - HM GM - FT GM - WB GM - KS GM - AC GM - PC GM - OP G. Beckingham H. Bartisch H. Bartisch R. Dokter R. Dokter Han Bangwu T. Pfister
Slide 18: Organization – Recently introduced division: PD
Organization – Recently introduced divison: PD President PD Andritz Group Expats G. Schmölzer Erich Weitgasser Chinese GM PM/PD Robert Dokter PD Andritz Group PD Andrtiz Group ATC Jelesic Guenther Petschauer Franz PD Writzl Walter Martin Kroboth Assistant TBD SAP Administration Wang Shengsan Deliver
Slide 19: Business development: Orders and Sales
Business development 1000 900 900 Orders 800 700 603 M. RMB 600 500 400 306 300 237 200 70 100 0 2003 2004 2005 2006 2007 Budget 900 800 754 700 Sales 600 M.RMB 500 432 400 280 300 200 97 100 39 0 2003 2004 2005 2006 2007 Budget Investor Days China – October 2007 Slide No. 19
Slide 20: Business development: EBITA
Business development EBITA 60 49 50 43 40 27 30 MRMB 20 10 0 2003 2004 2005 2006 2007 Budge t -10 -3 -8 -20 Investor Days China – October 2007 Slide No. 20
Slide 21: Business development: CAPEX / EBITA
Business development CAPEX / EBITA 60 50 40 30 M. RMB 20 10 0 2002 2003 2004 2005 2006 Budget 2007 -10 -20 Total investments EBITA * * after allocation of expat costs Capex: additions to tangible and intangible assets Investor Days China – October 2007 Slide No. 21
Slide 22: Business development: Return on Equity
Business development Return on Equity 80% 60% 40% 20% 0% -20% 2003 2004 2005 2006 BUDGET 2007 -40% -60% -80% Investor Days China – October 2007 Slide No. 22
Slide 23: Business development: Fiber Preparation
Business development Fiber Preparation 400 35 350 30 300 25 250 20 M. RMB M. RMB 200 15 150 10 100 50 5 0 0 -50 2004 2005 2006 2007 Budge t -5 INCOMING ORDERS SALES EBITA Main customers Lee & Man Industries / Anhui ShanYing / APP Investor Days China – October 2007 Slide No. 23
Slide 24: Business development: Refiners sold pieces
Business development Refiners sold 160 140 120 100 pieces 80 60 40 20 0 2003 2004 2005 2006 2007 FC-9 Fos han G raz Investor Days China – October 2007 Slide No. 24
Slide 25: Business development: Separation Technologies
Business development Separation Technologies 160 20 140 16 120 100 12 80 8 M. RMB M. RMB 60 40 4 20 0 0 -20 2002 2003 2004 2005 2006 2007 Budge t -4 -40 -60 -8 INCOM ING ORDE RS S A LE S E B ITA Main customers Shanghai Zhuyuan / Guangzhou Liede / Shandong Huatai Investor Days China – October 2007 Sl
Slide 26: Development of headcount - ATC
Development of headacount - ATC 700 627 600 500 479 400 359 300 281 266 268 200 177 213 163 100 100 118 77 0 Dec-04 Dec-05 Dec-06 YTD Aug 2007 TOTAL WORKERS TOTAL SALARIED GRAND TOTAL Investor Days China – October 2007 Slide No. 26
Slide 27: Employee age structure
Employee age structure salaried 4% 11% 10% Age Distribution <20 Age Distribution 20-24 Age Distribution 25-29 14% Age Distribution 30-34 Age Distribution 35-39 33% Age Distribution 40-49 Age Distribution >50 Employee headcount = 305 Age average = 31.9 28% 17% hourly A ge Distribution <20 30% 8% A ge
Slide 28: Employee education level
Employee education level 7,7% 3,6% 0,4% 18,5% 5,6% Doctor 35,3% Master 5,6% 67,0% Bachelor College 5,6% High Middle School Technical School 8,1% Junior School or Primary School 42,6% salaried hourly 19.4% 14.3% 15.3% education 9.5% 0.2% 4.0% total 37.3% Investor Days China – October 2007 Slide No. 2
Slide 29: Employee retainment
Employee retainment GOAL attrition rate2% • Base salary increase by 3-8%, promotion: 20% of salaried employees WHAT • Implement housing fund; cover all employees for social insurance we did in the • Retirement fund PROBLEMS past years • Income benchmarking • Find sufficient number of • Employee job
Slide 30: Andritz Technologies Ltd.
Andritz Technologies Ltd. • Overview • Andritz China operations • Future plans and challenges Investor Days China – October 2007 Slide No. 30
Slide 31: Andritz Foshan Locations
Andritz Foshan Locations Andritz Industrial Park - Foshan Sanshui District (ATC) Andritz Wolfensberger Special Alloy Foundry (AnWo) Investor Days China – October 2007 Slide No. 31
Slide 32: Andritz Industrial Park - Foshan Sanshui District
Andritz Industrial Park - Foshan Sanshui District Offers manufacturing environment in a 20,000 m² facility to support: • Screen baskets • Chipper wear parts • Screen rotors • Centrifuge components and repairs • Disk Filter sectors • Feed technology components • Agitators • Assembly of bale handling
Slide 33: Andritz Wolfensberger
Andritz Wolfensberger Andritz – Wolfensberger Special Alloy Foundry Co., Ltd Investment, ownership contribution: • Total Investment: 7.0 MEUR (Phase 1 & 2) • Contribution Andritz AG: 65% • Contribution Wolfensberger AG: 35% Business Idea and Scope of Business: • Foundry for Special Stainless Steel C
Slide 34: Andritz Technologies Ltd.
Andritz Technologies Ltd. • Overview • Andritz China operations • Future plans and challenges Investor Days China – October 2007 Slide No. 34
Slide 35: Future plans and challenges
Future plans and challenges • Basis • Strategy and targets • Challenges Slide No. 35
Slide 36: Basis
Basis • Chinese economy will continue to grow by at least 8% per year • Chinese population still to grow in the next 10 years • No outbreak of war and large pandemics will occur • Political relationship of China with major powers will remain stable • No major economic conflicts will arise (e.g. Chin
Slide 37: Strategy
Strategy WE WANT TO GROW into an important position within the Andritz Group. • We will provide for intrinsic growth of our business at a 25 + % average pace per year. • We maintain an EBITA level of above 8%. • We will utilize our position in China to provide for a basis to expand the business into
Slide 38: Targets
Targets • Become the 4th • Be # 1 in technology largest company in and quality in all strategic the Andritz Group in business fields in China terms of business volume by 2012 • Keep the staff turnover rate (unwanted) at • Be able to below 2% per year. manufacture / source Foster loyalty of the staff
Slide 39: Critical success factors
Critical success factors • Carefully study the market • JV - carefully select the partner • Implement state-of-the-art product technology • Use state-of-the-art manufacturing technologies • Use domestically available manuf. equipment • Base the business initially at least 30% on export • Use interna
Slide 40: Challenges
Challenges THE BIGGEST CHALLENGE .. .. is to keep up with the market developments and requirements while the company is still being built up / established and has to be manouvered through a continuous expansion and start up phase. … are new products and new processes every day... Maintain loyal Find
Slide 41: Thank you
谢谢您们 Investor Days China – October 2007 Slide No. 41