Andritz Ag · VIE:ANDR

Andritz — Investor Day (October 2015)

37 slides from Andritz's investor day presentation, Oct 6, 2015

  1. Slide 1: Efficiency. Do it. Right. Capital Markets Day ANDRITZ

    EFFICIENCY. DO IT. RIGHT. CAPITAL MARKETS DAY ANDRITZ VIENNA, OCTOBER 6, 2015 1

  2. Slide 2: Agenda

    AGENDA 1 Schuler at a glance 2 Financial performance 3 Market development 4 Production efficiency – Production program 5 Our strategy – Growth, innovation and efficiency 6 Joint venture with Chinese press manufacturer Yadon 7 Outlook 2

  3. Slide 3: Schuler at a glance

    FORMING THE FUTURE SCHULER % Member af the ANDR'TZ GROUP. SCHULER AT A GLANCE

  4. Slide 4: Schuler at a glance

    SCHULER AT A GLANCE Facts and figures Schuler Group 2014  Technological and global market leader in the metal forming industry Sales 1.2 billion €  Founded 1839 in Göppingen, Germany  Products: Cutting-edge presses, automation, dies, process know-how, New orders 1.2 billion € and services for the

  5. Slide 5: Six divisions with global responsibility

    SIX DIVISIONS WITH GLOBAL RESPONSIBILITY AUTOMOTIVE HYDRAULIC INDUSTRY SYSTEMS SERVICE AUTOMATION 5

  6. Slide 6: Financial performance

    FORMING THE FUTURE SCHULER % Member af the ANDR'TZ GROUP. FINANCIAL PERFORMANCE

  7. Slide 7: Stable development – growth outside automotive

    STABLE DEVELOPMENT – GROWTH OUTSIDE AUTOMOTIVE NEW ORDERS SALES in € million Division Automotive in € million Division Automotive Other Divisions Other Divisions CAGR +9.9% CAGR +16.0% 1,319.0 1,300.9 1,226.1 1,185.9 1,178.5 1,163.3 1,193.7 958.5 483.2 386.6 559.8 540.4 331.5 466.8 422.7 818.4 307.6

  8. Slide 8: Europe and Asia with highest level of new orders

    EUROPE AND ASIA WITH HIGHEST LEVEL OF NEW ORDERS NEW ORDERS in % Europe Americas** 45.9 Asia* 19.6 (59.5) 34.5 (17.8) (22.7) 2014 * Incl. other regions ( )Figures for 2012/13 ** North and South America 8

  9. Slide 9: Further growth in EBITA margins

    FURTHER GROWTH IN EBITA MARGINS EBITA in € million 10,4 EBITA margin in % 9,6 8,8 104.1 99.8 101.1 57.3 8,8% 8,5% 8,1% 8.5% 8.8% 8.1% 6.0% 19.9 6,0% 3.1% 3,1% 2009/10 2010/11 2011/12 2012/13 2014 With a press force of 140 meganewtons and a height of 22 meters, Schuler supplied the largest forging pr

  10. Slide 10: Equity ratio of 28.6%

    EQUITY RATIO OF 28.6% EQUITY RATIO in € million Equity ratio in % 322.0 302.0 244.6 205.2 30.3% 28.6% 116.8 27.1% 22.9% 16.1% 2009/10 * 2010/11 * 2011/12 * 2012/13 * 2014 ** Audi uses Schuler’s new technology for blanking lines *as of Sept. 30. 10 **as of Dec. 31.

  11. Slide 11: Overview of key figures 6M 2015

    OVERVIEW OF KEY FIGURES 6M 2015 Key figures 6M 2014 6M 2015 Change (in € million)  Sales of € 570.0 million were 5.5% above prior- New orders 554.6 424.6 -23.4% year level thanks to good realization of existing Sales revenues 540.2 570.0 +5.5% projects Order backlog (1) 1,053.7 939.6 -10.8%  Order

  12. Slide 12: Market development in China

    MARKET DEVELOPMENT IN CHINA 12

  13. Slide 13: Forecast passenger car until 2021 China

    FORECAST PASSENGER CAR UNTIL 2021 CHINA Car units in million 24 Base Case Worst Case 22 20 18 16 14 12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: JSC Automotive 13

  14. Slide 14: Vehicle density per 1,000 inhabitants – world

    VEHICLE DENSITY PER 1,000 INHABITANT – WORLD (2000-2014) 2000 2007 2014 800 804 732 592 554 572 557 576 524 310 230 195 152 107 128 106 11 29 7 10 22 Germany Japan USA Russia Brazil China India Source: IHS Automotive 14

  15. Slide 15: Production efficiency: production program

    PRODUCTION EFFICIENCY: PRODUCTION PROGRAM 15

  16. Slide 16: Reasons for the need to reorganize production in Germany

    REASONS FOR THE NEED TO REORGANIZE PRODUCTION IN GERMANY  Schuler’s German production sites have evolved historically and their structure is largely unchanged since the merger of Schuler and Müller Weingarten  Schuler has too many production facilities in Germany whose capacities are not utilized

  17. Slide 17: Schuler has too many production sites in Germany

    SCHULER HAS TOO MANY PRODUCTION SITES IN GERMANY  With seven production sites in Germany, Schuler has too many factories  These facilities are operating below capacity, in terms of their space and machine utilization  Entry into new market segments has changed the product mix: lower ratio of in-h

  18. Slide 18: Effect on jobs in production

    EFFECT ON JOBS IN PRODUCTION Site Employees Weingarten approx. 230 Waghäusel approx. 130 Netphen approx. 80* Total approx. 440 Netphen Waghäusel Weingarten *Production and Industry division 18

  19. Slide 19: The production concept will strengthen long-term competitiveness

    THE PRODUCTION CONCEPT WILL STRENGTHEN THE LONG-TERM COMPETITIVENESS OF SCHULER  The planned measures will place a one-off burden on earnings of around € 55 million. The cost savings will amount to approx. € 30-35 million per year  The reduction of structural costs will lead to lower costs for pro

  20. Slide 20: Our strategy – growth, innovation and efficiency

    OUR STRATEGY – GROWTH, INNOVATION AND EFFICIENCY 20

  21. Slide 21: Growing together − assuring long-term success for Schuler

    GROWING TOGETHER − ASSURING LONG-TERM SUCCESS FOR SCHULER ON OUR WAY TO A CLEAR RESPONSIBILITY AND GLOBAL COMPANY EFFICIENT PROCESSES  Prepare for dynamic growth and  Divisions with global sales and increasing company size technology responsibility  Solve complex company structures  Efficient an

  22. Slide 22: Group strategy program Growing Together

    GROUP STRATEGY PROGRAM GROWING TOGETHER GENERATING GROWTH, INNOVATION AND EFFICIENCY GROWTH INNOVATION EFFICIENCY New production concept – concentration on Investment in more efficient infrastructure: manufacture of core components, reduction of Engineering and Technology Center at location vertical

  23. Slide 23: Asia in focus: expansion of production and proximity to customers in China

    GROWTH INNOVATION EFFICIENCY ASIA IN FOCUS EXPANSION OF PRODUCTION AND PROXIMITY TO CUSTOMERS IN CHINA NEW PLANT IN DALIAN:  Capacities tripled up to Peking Dalian 16,000 square meters, investment volume of approx. € 16 million Shanghai IN SHANGHAI  Strategic procurement, supply management, local

  24. Slide 24: Growth via improved service offerings

    GROWTH INNOVATION EFFICIENCY GROWTH VIA IMPROVED SERVICE OFFERINGS INCREASING SALES BY EXPANDING SERVICE PORTFOLIO  Growing importance of comprehensive “Life Cycle Support” and “Performance Enhancements for Customer Machinery”  Installed production base of over 20,000 presses  Realignment and exp

  25. Slide 25: Press hardening for made to measure lightweight components

    GROWTH INNOVATION EFFICIENCY PRESS HARDENING FOR MADE TO MEASURE LIGHTWEIGHT COMPONENTS STRONG DEMAND FROM AUTOMOBILE INDUSTRY AND SUPPLIERS Technology Center Press Hardening in Göppingen Schuler combines expertise in the field of press hardening to become an overall system provider 25

  26. Slide 26: Resource efficiency as a driver for innovation

    GROWTH INNOVATION EFFICIENCY RESOURCE EFFICIENCY AS A DRIVER FOR INNOVATION SUSTAINABLE SYSTEM SOLUTIONS IN PRESS SHOP GAINING IMPORTANCE  Energy costs increasingly important factor  Forming systems play an essential part  System provider Schuler has the big picture (electricity, air and cooling

  27. Slide 27: Example servo press line

    GROWTH INNOVATION EFFICIENCY EXAMPLE SERVO PRESS LINE by using own DC power supply network -22% (Schuler Smart DC Grid) by using intelligent stand-by -3% and pause switching by using energy-saving cushion -25% (Schuler Energy Saving Cushion) -50% SAVING of 3 million kWh per year Servo press line 27

  28. Slide 28: Example new automatic blanking press MSC 2000

    GROWTH INNOVATION EFFICIENCY EXAMPLE NEW AUTOMATIC BLANKING PRESS MSC 2000 by doing without gear transmission and using -25% roller bearings by using newly developed drivetrain with -15% reduced mass moment of inertia -10% by substituting the oil lubrication system -50% SAVING from 100,000 to 50,000

  29. Slide 29: Joint venture with Chinese press manufacturer Yadon

    JOINT VENTURE WITH CHINESE PRESS MANUFACTURER YADON 29

  30. Slide 30: Schuler acquires majority shareholding in Yadon

    SCHULER ACQUIRES MAJORITY SHAREHOLDING IN CHINESE MACHINE TOOL MANUFACTURER YADON  Schuler has acquired a majority stake in the Chinese machine tool manufacturer Yangzhou Metal Forming Machine Tool Co., Ltd. (Yadon)  Agreement to purchase a majority stake of at least 51% in Yadon signed  Cooperat

  31. Slide 31: Yadon successful in mid- and low-range segment

    YADON SUCCESSFUL IN MID- AND LOW-RANGE SEGMENT  Yadon is one of China’s leading press manufacturers  Its clients include major Chinese companies – including automotive suppliers, manufacturers of heat exchangers for air conditioning units, electric motor producers, and the entire metalworking indu

  32. Slide 32: Yadon's strengths

    YADON’S STRENGTHS  Strong market and brand reputation  Best market reputation among C segment manufacturers  Own sales network (second-largest in China)  Quality regarded as high by customers  In some areas similar to Taiwanese manufacturers like Chinfong and Seyi with regard to quality of comp

  33. Slide 33: Strategic fit: market development & cooperation target

    STRATEGIC FIT MARKET DEVELOPMENT & COOPERATION TARGET Today In future Technology/ Price Schuler –Yadon Quantity 33

  34. Slide 34: Outlook

    FORMING THE FUTURE SCHULER "4 Member af the ANDR'TZ GROUP. OUTLOOK 34

  35. Slide 35: Successful into the future

    SUCCESSFUL INTO THE FUTURE  Continuous long-term growth for global automobile industry  Increased growth for market segments outside the automotive sector  Development of volume markets (B segment)  Dynamic overseas growth and moderate growth in Europe  Increased localization of production  De

  36. Slide 36: Disclaimer

    DISCLAIMER This presentation contains forward-looking statements which are subject to risks and uncertainties, in particular regarding future events, future development of value, plans, strategies, expectations, outlook, including statements in connection with potential profits. Schuler AG has based

  37. Slide 37: Forming the future

    FORMING THE FUTURE

Andritz — Investor Day (October 2015) on 6ix