Andritz Ag · VIE:ANDR
Andritz — Non-Deal Roadshow (November 2018)
26 slides from Andritz's roadshow presentation, November 2018
Slide 1: Company Presentation ANDRITZ Group November 2018
COMPANY PRESENTATION ANDRITZ GROUP NOVEMBER 2018
Slide 2: Chapter Overview: ANDRITZ Group Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 2 / COMPANY PRESENTATION, NOVEMBER 2018 / © ANDRITZ GROUP
Slide 3: The ANDRITZ Group
THE ANDRITZ GROUP ANDRITZ is a globally leading supplier of plants, equipment, systems and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass
Slide 4: A World Market Leader with Four Business Areas
A WORLD MARKET LEADER WITH FOUR BUSINESS AREAS HYDRO PULP & PAPER METALS SEPARATION 24 36 29 11 % order intake* % order intake* % order intake* % order intake* PRODUCT OFFERINGS PRODUCT OFFERINGS PRODUCT OFFERINGS PRODUCT OFFERINGS Electromechanical equipment Equipment for production of Presses/pres
Slide 5: Long-Term Growth Based on Acquisitions and Organic Expansion
LONG-TERM GROWTH BASED ON ACQUISITIONS AND ORGANIC EXPANSION Compound Annual Growth Rate (CAGR) of Group sales 2007-2017: +6% p.a. (thereof approximately half from organic growth) 6,377 6,039 5,889 5,711 5,859 5,177 4,596 3,610 3,554 3,283 3,198 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 6: 2018 Has Been an Active Year with Regard to Acquisitions
2018 HAS BEEN AN ACTIVE YEAR WITH REGARD TO ACQUISITIONS Companies acquired in 2018 will add roughly 500 MEUR annual sales HYDRO PULP & PAPER METALS SEPARATION 2006 VA TECH HYDRO 2000 Ahlstrom Machinery 2010 Rieter Perfojet 2000 Kohler 2000 UMT 2007 Tigép 2000 Lamb Baling Line 2010 DMT/Biax 2002 SEL
Slide 7: Chapter Overview: Results Q3/Q1-Q3 2018 and Market Update
CHAPTER OVERVIEW 02 RESULTS Q3/Q1-Q3 2018 AND MARKET UPDATE 7 / COMPANY PRESENTATION, NOVEMBER 2018 / © ANDRITZ GROUP
Slide 8: Satisfactory Order Intake in Q3 2018
SATISFACTORY ORDER INTAKE IN Q3 2018 Aggregated order intake of the last four quarters amounts to ~6.2 bn. EUR. ORDER INTAKE Q1-Q3 2018 BY REGION MEUR MEUR (IN %) +10% 2,500 2,250 6,500 2,000 1,737 Emerging 1,431 1,470 1,532 1,560 1,467 1,533 1,469 6,000 markets: 47% 1,247 1,319 1,211 1,341 6% 1,500
Slide 9: Capital Sales
CAPITAL SALES Quarterly development of capital sales (in MEUR). +3% 1,400 4,600 1,230 1,240 1,200 1,140 1,114 1,152 1,011 1,010 4,400 1,001 958 1,000 922 911 895 863 926 848 4,200 800 4,000 600 3,800 400 200 3,600 0 3,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18
Slide 10: Increase of Service Business
INCREASE OF SERVICE BUSINESS Quarterly development of service sales (in MEUR). +9% 700 2,200 594 600 558 560 482 514 511 500 461 470 437 465 468 465 469 2,000 403 428 400 1,800 300 200 1,600 100 0 1,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Service
Slide 11: Group Order Backlog Up Compared to End of 2017
GROUP ORDER BACKLOG UP COMPARED TO END OF 2017 DUE TO RISING ORDER INTAKE TREND ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) ORDER BACKLOG Q1-Q3 2018 +8% BY BUSINESS AREA 7,786 (IN %) 7,349 7,324 7,148 7,076 7,044 6,892 6,789 6,974 6,849 6,651 6,841 6,883 6,383 6,553 7% 23% 39% 31% Q1 15 Q2 15 Q3 15
Slide 12: Earnings in Q3 2018 Down Compared to Previous Year
EARNINGS IN Q3 2018 DOWN COMPARED TO REFERENCE FIGURE OF PREVIOUS YEAR Satisfactory development of Pulp & Paper, Metals still unsatisfactory. EBITA AND EBITA MARGIN Q3 2018 (IN MEUR) EBITA AND EBITA MARGIN Q1-Q3 2018 (IN MEUR) Q3 2018: -13% -18% 98.9 • EBITA, at 85.9 MEUR, down by 13% compared to th
Slide 13: Earnings and Profitability by Business Area
EARNINGS AND PROFITABILITY BY BUSINESS AREA EBITA (MEUR) and EBITA margin (%). HYDRO PULP & PAPER METALS SEPARATION Including positive one-off effect of 136.7 ~25 MEUR 129.7 9.0% 8.8% 84.0 73.3 65.3 7.1% 6.8% 6.0% 29.4 5.1%* 19.2 20.8 2.6% 4.7% 4.6% Q1-Q3 2017 Q1-Q3 2018 Q1-Q3 2017 Q1-Q3 2018 Q1-Q3
Slide 14: Hydro (1): Unchanged Moderate Market Environment
HYDRO (1): UNCHANGED MODERATE MARKET ENVIRONMENT Selective award of individual projects, particularly in Asia. ANDRITZ will modernize the largest hydropower plant in • New hydropower plants Central Asia. Some new projects in emerging markets, especially in Southeast Asia and Africa, are currently in
Slide 15: Hydro (2): Subdued Business Development
HYDRO (2): SUBDUED BUSINESS DEVELOPMENT Despite increase in sales, earnings and profitability down. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Order intake significantly Order intake MEUR 1,056.2 939.0 +12.5% 303.1 425.0 -28.7% 1,317.2 lower than in Q3 2017, which included some medium-s
Slide 16: Pulp & Paper (1): Good Market Environment
PULP & PAPER (1): GOOD MARKET ENVIRONMENT • Pulp ANDRITZ fiberline delivered to Fibria, for the pulp mill Horizonte 2 in Três Lagoas, Brazil. Good project activity, particularly for modernization of existing pulp mills. ANDRITZ received major order from Arauco for their MAPA project in early October
Slide 17: ANDRITZ's Strong Position in Large Fiberlines in South America
ANDRITZ’S STRONG POSITION IN LARGE FIBERLINES IN SOUTH AMERICA Continued technological improvement ANDRITZ has delivered 7 out of 9 fiberlines in South-America since Fray Bentos 1,950,000 1,500,000 1,500,000 1,500,000 1,500,000 1.500.000 1,300,000 Suzano 1,300,000 arauco 1,250,000 CMPC 1,000,000 Gua
Slide 18: New Pulp Mills and Lines in Planning
NEW PULP MILLS AND LINES IN PLANNING ≥0.5MT FINLAND: Owner – project Capacity/a* Planned start-up Finnpulp – Kuopio 1.2 2021 USA: Kemijärvi 0.5 2021 Owner – project Capacity/a* Planned start-up ESTONIA: RUSSIA: SUN BIO Arkansas 1.0 2023 Owner – project Capacity/a* Planned start-up Owner – project Ca
Slide 19: Pulp & Paper (2): Favorable Development of Order Intake
PULP & PAPER (2): FAVORABLE DEVELOPMENT OF ORDER INTAKE Earnings and profitability at satisfactory level. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Order intake favorably up, Order intake MEUR 1,726.4 1,552.0 +11.2% 545.5 427.1 +27.7% 2,033.4 both for the capital and service business.
Slide 20: Metals (1): Satisfactory Project and Investment Activity
METALS (1): SATISFACTORY PROJECT AND INVESTMENT ACTIVITY Good market environment in Metals Processing; solid market environment in Metal Forming. • Metal Forming Satisfactory project and investment activity; some individual orders were awarded selectively by international car manufacturers and their
Slide 21: Metals (2): Unsatisfactory Business Development
METALS (2): UNSATISFACTORY BUSINESS DEVELOPMENT Cost overruns on some projects and execution of some lower-margin orders. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Significant increase in order Order intake MEUR 1,403.3 1,143.6 +22.7% 456.6 329.4 +38.6% 1,606.5 intake mainly due to Met
Slide 22: Separation (1): Good Project and Investment Activity Continued
SEPARATION (1): GOOD PROJECT AND INVESTMENT ACTIVITY CONTINUED Mainly for solid/liquid separation equipment. ANDRITZ ArtBREW, plug-and-play craft beer • Municipal clarification solution for breweries. Investment activity at unchanged good levels (sewage sludge dewatering and drying). • Industrial Go
Slide 23: Separation (2): Increase in Order Intake and Sales
SEPARATION (2): INCREASE IN ORDER INTAKE AND SALES High order intake in Q1-Q3 2018. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Order intake in Q1-Q3 Order intake MEUR 552.1 477.9 +15.5% 163.5 159.7 +2.4% 622.4 2018 strongly up. Order backlog (as of end of period) MEUR 460.1 410.2 +12.2%
Slide 24: Chapter Overview: Outlook
CHAPTER OVERVIEW 03 OUTLOOK 24 / COMPANY PRESENTATION, NOVEMBER 2018 / © ANDRITZ GROUP
Slide 25: Outlook for Remainder of 2018 Unchanged
OUTLOOK FOR REMAINDER OF 2018 UNCHANGED Unchanged guidance for 2018: flat sales, solid profitability (excluding one-offs) • For 2018, ANDRITZ expects stable sales compared to 2017. • Earnings and profitability will be significantly lower due to provisions of well above EUR 20 million, made for capac
Slide 26: Disclaimer
DISCLAIMER This presentation contains valuable, proprietary property belonging to ANDRITZ AG or its affiliates (“the ANDRITZ GROUP”), and no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales contracts that may be con