Andritz Ag · VIE:ANDR

Andritz — Investor Day (2017)

62 slides from Andritz's investor day presentation, 2017

  1. Slide 1: ANDRITZ GROUP Capital Market Day 2017, Graz

    ANDRITZ GROUP Capital Market Day 2017, Graz

  2. Slide 2: Contents

    Contents 1 Update on business areas 2 Financial performance and targets

  3. Slide 3: Contents: Update on business areas

    Contents Update on business areas  HYDRO 1  PULP & PAPER  METALS  SEPARATION 2 Financial performance and targets

  4. Slide 4: ANDRITZ HYDRO order intake peaked in 2011

    ANDRITZ HYDRO order intake peaked in 2011 Order intake (in MEUR) 2,096.2 2,008.4 CAGR 2012-2016: -7.0% 1,870.1 1,865.4 1,816.7 CAGR 2006-2012: 12.8% 1,693.9 1,718.7 1,543.4 1,500.3 1,216.1 973.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sales (in MEUR) CAGR: 2012-2016: -1.2% CAGR: 2006-

  5. Slide 5: HYDRO: sales generation from order backlog

    HYDRO: sales generation from order backlog Sales generation from order backlog 2011 Expected sales generation from order backlog 2016 Backlog Sales Backlog Sales 5 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  6. Slide 6: ANDRITZ's average world market share at around 23%

    ANDRITZ’s average world market share at around 23% Site C, Saratovskaya 4th package (Voith) Kafue Gorge Lower, Mangla (GE) Huanggou (Harbin) Longtoushan (Zhefu) Nam Theun 1, Yusufeli, Gouvães (AH) China (Harbin, Dongfang, Zhefu, GE, Voith, other Chinese) Guri I Rehab (Dongfang) Source: ANDRITZ HYDRO

  7. Slide 7: Global market for electromechanical equipment: market volatility mainly caused by large scale projects

    Global market for electromechanical equipment: market volatility mainly caused by large scale projects >> Change/reduction of global market volume mainly caused by large-scale hydropower projects > 100 MEUR >> Excluding large-scale hydropower projects > 100 MEUR, global electromechanical equipment m

  8. Slide 8: Regional split of global hydropower equipment capex

    Regional split of global hydropower equipment capex Source: ANDRITZ HYDRO project data base NME: Near Middle East 8 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  9. Slide 9: Regional mismatch of global capex and ANDRITZ orders

    Regional mismatch of global capex and ANDRITZ orders ANDRITZ strong in Europe, weak in China Comparison of regional split: Global capex vs. ANDRITZ order intake 2016 ANDRITZ market share 2016: 21% Source: ANDRITZ HYDRO project data base NME: Near Middle East 9 Capital Market Day 2017, Graz – ANDRITZ

  10. Slide 10: Electricity demand globally and by regions

    Electricity demand globally and by regions 26,000 24,000 22,000 Electricity Domestic Consumption (TWh) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Asia North America Europe Latin America CIS Middle-East Africa Pacific Sou

  11. Slide 11: Hydropower the key renewable energy source

    Hydropower the key renewable energy source Split by renewable energy source 2016 for non-stop productivity Source: Renewables 2017 Global Status Report Note: Based on renewable generating capacity at year-end 2016 11 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  12. Slide 12: Renewable net additions to capacity by technology (2001-2021E)

    Renewable net additions to capacity by technology (2001-2021E)  Since 2013, yearly capacity additions for solar and wind have surpassed capacity additions to hydro  China, Asia and Latin America will be the most active 166 GW cumulative regions for new hydropower capacities until 2021 hydropower c

  13. Slide 13: Global grid-connected energy storage capacity by technology 2016

    Global grid-connected energy storage capacity by technology 2016 for non-stop productivity ~ 156 GW installed + ~7 GW in 2016 + 0.2 GW in 2016 + 6 GW in 2016 + 0.6 GW in 2016 Electrochemical  Lithium-ion, lead-acid, sodium sulphur and sodium nickel chloride batteries Thermal Storage + > 0.1 GW in 2

  14. Slide 14: Global grid-connected energy storage capacity by technology 2016

    Global grid-connected energy storage capacity by technology 2016 for non-stop productivity Source: Renewables 2017 Global Status Report 14 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  15. Slide 15: Global electricity storage investments

    Global electricity storage investments for non-stop productivity (2015; in billion USD) Batteries 1.0 Pumped hydro Others storage 1.7 8.3 Other storage 0.7 Batteries include: lithium-ion, lead-acid, nickel-cadmium, redox-flow, sodium-sulphur, other batteries Other storage includes: thermal storage,

  16. Slide 16: Levelised cost of energy: Hydropower vs. onshore wind power

    Levelised cost of energy Hydropower vs. onshore wind power Global average:  Hydropower 5 $ct/kWh  Onshore wind power 7 $ct/kWh Hydropower is still the Hydro power Wind power cheapest form of renewable energy Source: Renewables 2017 Global Status Report 16 Capital Market Day 2017, Graz – ANDRITZ GR

  17. Slide 17: Hydro pumped storage expected to remain dominating

    Hydro pumped storage expected to remain dominating for non-stop productivity * PSH: Pumped Hydro Storage Non-PSH: other Storage Technologies, like Compressed Air (CAES), Batteries (Li-Ion, Lead-based, Sodium Sulphur, Flow,..), Flywheels, Supercapacitors,… *) IEA 2DS (“Two Degrees”) Scenario; energy

  18. Slide 18: Update on Hydro capacity adjustments and strategy

    Update on Hydro capacity adjustments and strategy  Target is to increasingly shift resources China and India to cover and serve growing Asian and Chinese markets locally  In line with this strategy and based on overall low market activity several capacity adjustment measures have been taken during

  19. Slide 19: Conclusions regarding hydro (1)

    Conclusions regarding hydro (1) Market:  Declining growth rates in electricity consumption worldwide  Majority of investments in renewable energies relate to solar and wind Still optimistic about future of hydropower:  Future availability of cost-competitive sites for onshore wind?  Closure of n

  20. Slide 20: Conclusions regarding hydro (2)

    Conclusions regarding hydro (2) ANDRITZ:  Generally low market share (~15%) in large hydro projects  goal 20%  Re-entry in China in pumped storage achieved  potential for future orders  Further growth of pumps business targeted  Business volume potential for ANDRITZ HYDRO:  Average global hyd

  21. Slide 21: Contents

    Contents Update on business areas  HYDRO 1  PULP & PAPER  METALS  SEPARATION 2 Financial performance and targets

  22. Slide 22: PULP & PAPER: Satisfactory project and investment activity

    PULP & PAPER Satisfactory project and investment activity Modernizations Long-term Service average growth Satisfactory project and investment activity for Solid market development to continue potential: modernization/refurbishment projects  2-3% p.a. Outlook: change of production from graphic to pa

  23. Slide 23: Papermaking fibre consumption growth 2014-2030E

    Papermaking fibre consumption growth 2014-2030E Highest growth rates for BHKP and recovered paper Q2: 1,476 Q1: 1,286 Source: Pöyry Fibre Outlook up to 2030 23 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  24. Slide 24: Continued market pulp production growth (BHKP, BSKP)

    Continued market pulp production growth (BHKP, BSKP) Growth mainly in South America and Europe CAGR 2016-2031: 2.6% 2001-2015: 2.8% Q2: 1,476 Q1: 1,286 24 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  25. Slide 25: New pulp line start-ups by region

    New pulp line start-ups by region High investments in Latin America expected Q2: 1,476 Q1: 1,286 Note: Chemical and mechanical Source: Pöyry 25 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  26. Slide 26: PULP & PAPER: Good project pipeline for greenfield pulp mills

    PULP & PAPER Good project pipeline for greenfield pulp mills USA: Mozambique: Owner – project Capacity/a.* Planned start-up Owner Capacity/a.* Planned start-up SUN BIO Arkansas 0.6 2020 Portucel 1.5 2022 et seq. Chile: Owner – project Capacity/a.* Planned start-up Finland: Arauco – MAPA 1.6 2021 Own

  27. Slide 27: Contents

    Contents Update on business areas  HYDRO 1  PULP & PAPER  METALS  SEPARATION 2 Financial performance and targets

  28. Slide 28: Schuler: Order intake and sales 2012-2016

    Schuler Order intake and sales 2012-2016 Order intake (in MEUR) thereof ~ 290 MEUR service Sales (in MEUR) and 85 MEUR tooling 1,226.1* 1,300.9* 1,178.5 1,200.0 1,164.9** 1,174.2 1,193.7 1,199.5 1,039.4** 1,015.7 2011/12 2013 2014 2015 2016 2011/12 2013 2014 2015 2016 Takeover-offer Takeover-offer b

  29. Slide 29: Schuler: automotive accounts for ~80% of the business

    Schuler: automotive accounts for ~80% of the business Schuler: split of order intake 2016 Order intake from automotive OEMs, tier 0.5 and automotive suppliers (in MEUR) Non- automotive: 20% 992.3 968.5 Automotive: 80% (968.5 MEUR) 824 759* 365.4 411.7 387.0 351.8 246.8 288.1 152.2 245.8 380.1 255.0

  30. Slide 30: Schuler: order intake non-automotive

    Schuler: order intake non-automotive Coin minting, railways, white goods, etc. (in MEUR) Includes largest single order in company history: Schuler: split of order intake 2016 280.4* line for production of railway wheels (over 90 MEUR) Non- Automotive: 231.0 automotive: 20% 80% (968.5 MEUR) 201.4 191

  31. Slide 31: Total number of press lines awarded worldwide

    Total number of press lines awarded worldwide 2012-2016 (in units) Thereof 7 awarded 88 to Schuler Thereof 3 65 awarded Thereof 6 to Schuler 56 awarded to Schuler Thereof Thereof 3 2 38 34 awarded awarded to Schuler to Schuler 2012 2013 2014 2015 2016 Note: total amount of press lines sold in A, B,

  32. Slide 32: Order awards for press lines by German automotive OEMs by region

    Order awards for press lines by German automotive OEMs by region (in units) Thereof 7 7 awarded to Schuler Thereof 6 6 awarded to 2 Schuler Thereof 3 5 awarded to Schuler Thereof 3 4 awarded to Schuler 2 Thereof 5 2 3 awarded to 2 Schuler 5 3 3 2 1 0 2012 2013 2014 2015 2016 China Rest of the world

  33. Slide 33: Development of global market volume for presses

    Development of global market volume for presses Schuler-Yadon addresses B-segment CAGR 2016-2020E: ■ A-Segment +3.1% ■ B-Segment +3.2% +3.1% ■ C-Segment +2.7% 13.9 Group companies and 13.5 13.2 addressed target segments: 12.7 12.3* 2.3 2.3 2.3 2.2 2.1 6.0 6.2 5.6 5.8 5.4 Schuler-Yadon 4.8 4.9 5.1 5.

  34. Slide 34: Light vehicles production (in million units)

    Light vehicles production (in million units) Further growth expected until 2021, especially in China CAGR 2016- CAGR 2017E 2016- 2021E ■ Americas +1.0% +2.3% ■ Europe +2.3% +2.6% ■ Asia (ex. +4.2% +3.1% China) ■ China +2.6% +5.3% ■ Others +8.7% +6.4% 109.0 3.2 92.2 94.7 2.3 2.5 33.6 26.6 27.3 25.1 2

  35. Slide 35: Strong rise of hot forming parts per vehicle expected

    Strong rise of hot forming parts per vehicle expected (in million parts/year) Trend upwards  Number of hot forming parts 600 per vehicle will increase from 550 2016 an average of 10 today to 500 approx. 300 mill. more than 30 in 2018 450 400  OEM experts say that by 350 2018 up to 600 million part

  36. Slide 36: Ford USA orders three hydraulic hot stamping lines with PCHflex technology

    Ford USA orders three hydraulic hot stamping lines with PCHflex technology  In late July 2016, Schuler received an important order from Ford USA, Michigan for three hydraulic hot stamping lines with PCHflex technology incl. automation and furnace  Schuler PCHflex technology is leading technology f

  37. Slide 37: First order for hot stamping line with PCHflex technology for China

    First order for hot stamping line with PCHflex technology for China  The Chinese car manufacturer Baowei placed an order with Schuler in July 2016 for a hydraulic hot stamping line with PCHflex technology incl. automation  Baowei is thus the first Chinese customer to invest in a hot stamping line

  38. Slide 38: Today's cars are composed of over 10,000 single parts

    Today‘s cars are composed of over 10,000 single parts/component groups In addtion to the items shown in the image, technologies from ANDRITZ and Schuler are also used in production of the following vehicle components:  Card body (tailgate, engine hood, side panels, roof, doors, wheelhouse, rocker)

  39. Slide 39: Number of component groups in powertrain by type of car

    Number of component groups in powertrain by type of car Number of Powertrain Component groups component designs groups Engine components and gear boxes, gearbox shafts, gear parts, 1. Cars with Components designed gear transmissions, crank shafts, piston rods, cone gear wheels, combustion specifical

  40. Slide 40: ANDRITZ furnaces for high-strength steel production

    ANDRITZ furnaces for high-strength steel production Confidential customer Introduction: Today the customer does not have a galvanizing furnace which is able to process the AHSS-grades of the 3rd generation with a hot dip coating (Q&P = Quench & Partitioning). Technical data: Scope Installation of a

  41. Slide 41: Schuler technology for laser blanking lines

    Schuler technology for laser blanking lines Mercedes-Benz Kuppenheim  Lines cut blanks out of a moving sheet metal coil which are then formed into car body parts in further steps.  As fiber lasers are used for the cutting process, no dies are required – in contrast to conventional blanking lines.

  42. Slide 42: ANDRITZ Soutec Soutrac welding line for hot stamped door rings

    ANDRITZ Soutec Soutrac welding line for hot stamped door rings 42 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  43. Slide 43: Laser welding systems from ANDRITZ Soutec

    Laser welding systems from ANDRITZ Soutec voestalpine, Linz, Austria Technical data: SOUSPEED® Scope Fully Automatic Laser Welding System:  Dimpling and Blank Turning  Gap controlled filler wire  6kW Disk Laser  Souvis® 5200 Quality Control System Material HSS, AHSS, zinc coated, galvannealed Us

  44. Slide 44: Acquisition of Powerlase

    Acquisition of Powerlase  Acquistion of 50.1 percent stake  Powerlase provides high-energy laser technology for ablation, surface processing, cleaning and processing composite materials in industrial applications with high production speed demands.  International customers from the photovoltaic,

  45. Slide 45: Schuler: First order for new battery business unit

    Schuler First order for new battery business unit Promising growth opportunities in market for e-mobility  In November 2016, the Battery business unit from Schuler received its first order from one of the world’s leading battery manufacturers  Scope of supply: a complete production line incl. proc

  46. Slide 46: Update on Schuler restructuring program

    Update on Schuler restructuring program  2015: 78 MEUR provisions for restructuring (thereof 18 MEUR released in 2016)  main focus on reduction of production capacities to avoid cost under-absorption in times of lower order intake  Closure of inhouse production of Waghäusel and Weingarten  All c

  47. Slide 47: Conclusions regarding Schuler

    Conclusions regarding Schuler Market:  Continued growth of light-weight vehicles produced  E-mobility will reduce the total number of car body parts, however very limited impact on Schuler expected  New steel types require new press and die technologies  opportunity for Schuler Schuler:  Still

  48. Slide 48: Contents

    Contents Update on business areas  HYDRO 1  PULP & PAPER  METALS  SEPARATION 2 Financial performance and targets

  49. Slide 49: SEPARATION: Satisfactory investment and project activity

    SEPARATION Satisfactory investment and project activity Municipal Investment activity at reasonable Feed and biomass pelleting levels, mainly in developed markets Solid project activity Outlook: Stable + Outlook: Stable +/- Long-term average growth potential: 2-3% p.a. Industrial Reasonable demand i

  50. Slide 50: SEPARATION (1): Quarterly development of order intake since 2016

    SEPARATION (1) Quarterly development of order intake since 2016 (in MEUR) 180 164 160 155 152 155 151 140 140 120 111 112 101 99 100 93 91 80 60 40 20 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 SE+FT SE 50 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  51. Slide 51: SEPARATION (2): Development of order intake in July and August 2017

    SEPARATION (2) Development of order intake in July and August 2017 (in MEUR) 120 115 114 110 105 100 95 95 90 85 July/Agust 2017 SE+FT SE 51 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  52. Slide 52: SEPARATION (3): Development of centrifuges sold since 2014

    SEPARATION (3) Development of centrifuges sold since 2014 500 457 450 417 400 389 350 300 272 250 200 150 100 50 0 2014 2015 2016 H1 2017 Centrifuges (units) 52 Capital Market Day 2017, Graz – ANDRITZ GROUP – Wolfgang Leitner

  53. Slide 53: Launch of several innovative products

    Launch of several innovative products Substantial reduction in power consumption for large decanters  Reduction of power consumption of up to 40%, achieving a decrease in operating costs and total cost of ownership  Reduced service costs by enhanced wear protection and so further reduced total cos

  54. Slide 54: RheoScan - Real time, automatic adjustment of polymer doses

    RheoScan - Real time, automatic adjustment of polymer doses First optical measurement system on the market  Detects actual sludge viscosity during thickening and dewatering process  Adjusts the needed polymer dose  Is compatible with all models of belt filter presses, gravity belt systems and pol

  55. Slide 55: Contents

    Contents 1 Update on business areas 2 Financial performance and targets

  56. Slide 56: Results H1 2017: Major findings

    Results H1 2017: Major findings ANDRITZ GROUP Unit H1 2017 H1 2016 Change Q2 2017 Q2 2016 Change Order intake MEUR 2,771 2,566 +8% 1,211 1,319 -8% Sales MEUR 2,779 2,761 +1% 1,393 1,476 -6% EBITA (%) MEUR 207 (7.5%) 183 (6.6%) - 110 (7.9%) 99 (6.7%) - Order intake: EBITA at 7.5%, without extraordina

  57. Slide 57: Review of past Capital Market Day goals

    Review of past Capital Market Day goals 2010 2011 2012 2013 2014 2015 2016 Share of renewable Sales: energy 4.0/4.5 bn. 5.0 bn. sales EUR EUR >50% 7.0% over the cycle Regain Regain Regain Regain EBITA >> Goal achieved in 2010 and 2011: 7.2% in each case 7.0% 7.0% 7.0% 7.0% margin: (achieved >> Goal

  58. Slide 58: Target to continue long-term profitable growth

    Target to continue long-term profitable growth Goal: further improve profitability with top-line sales growth Sales Sales Sales Sales Growth rates include CAGR: CAGR: CAGR: CAGR: organic growth and 12.1% 16.4% 13.3% 5-8% p.a. acquisitions 7.0-8.0% 6.0% 6.2% Average EBITA margin 5.3% 2000-2004 2005-2

  59. Slide 59: Update on long-term EBITA margin goals per business area

    Update on long-term EBITA margin goals per business area HYDRO PULP & PAPER Long-term Long-term goal: goal: 8.5-9.0% 8.7 8.7 8.0 8.5 7.0-8.0% 8.3 8.1 8.3 7.9 CONFIRMED NEW: 7.3 6.9 6.0  5.9 5.2 >8% 2012 2013 2014 2015 2016 H1 2012 2013 2014 2015 2016 H1 2016/2017 2016/2017 -1.8 METALS SEPARATION Lo

  60. Slide 60: Consistent dividend policy

    Consistent dividend policy DIVIDEND per share (EUR) 1.50 1.35 1.20 1.10 1.00 0.85 0.50 0.55 0.50 0.50 0.38 0.18 0.25 0.11 0.13 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Confirmation of dividend goals:  Maintain payout ratio at a minimum of ~50%  Mid-term increase t

  61. Slide 61: ANDRITZ GROUP growth opportunities

    ANDRITZ GROUP growth opportunities Aftermarket:  Digital business  Metris IoT solutions and Metris spare part catalog (eShop)  Mill maintenance  O & M (HYDRO)  Grow METALS aftermarket Capital:  HYDRO  China  Schuler  B-segment automotive/non-automotive  SEPARATION 61 Capital Market Day 201

  62. Slide 62: ANDRITZ GROUP Capital Market Day 2017, Graz

    ANDRITZ GROUP Capital Market Day 2017, Graz

Andritz — Investor Day (2017) on 6ix