Andritz Ag · VIE:ANDR
Andritz — Investor Day (September 2021)
31 slides from Andritz's investor day presentation, Sep 15, 2021
Slide 1: Pulp & Paper Capital
ANDRITZ CAPITAL MARKET DAY 2021 PULP & PAPER CAPITAL JOACHIM SCHÖNBECK SEPTEMBER 15, 2021
Slide 2: Review CMD 2019: Roadmap 2020-2022
REVIEW CMD 2019: ROADMAP 2020 -2022 TARGET STATUS • Target to make it a 3 billion+ EUR business P&P revenue 2020: 3.3 billion EUR Achieved • Further good growth potential seen Business volume increased by 70% in the power market from 2018 to 2020 Achieved • Goal is to maintain high profitability in
Slide 3: Economical Drivers (1)
ECONOMICAL DRIVERS (1) Long-term demand growth by product area 2016-2030 Source: Pöyry World Paper Markets up to 2030 (2017) 3 / ANDRITZ CMD 2021 - PULP & PAPER CAPITAL, SEPTEMBER 15, 2021
Slide 4: Economical Drivers (2)
ECONOMICAL DRIVERS (2) Long-term demand growth by region 2016-2030 Source: Pöyry World Paper Markets up to 2030 (2017) 4 / ANDRITZ CMD 2021 - PULP & PAPER CAPITAL, SEPTEMBER 15, 2021
Slide 5: ANDRITZ maintains its leading position for high-capacity fiberlines
ANDRITZ MAINTAINS ITS LEADING POSITION FOR HIGH-CAPACITY FIBERLINES Pulp mill projects in South America The Largest Capacities with Best Quality Major Supplier of Big Fiberlines 5 / ANDRITZ CMD 2021 - PULP & PAPER CAPITAL, SEPTEMBER 15, 2021
Slide 6: Mastering project management is paramount to ensure profitability
MASTERING PROJECT MANAGEMENT IS PARAMOUNT TO ENSURE PROFITABILITY EPC delivery of a complete pulp mill for Suzano Horizonte 2, Tres Lagoas, Brazil • Total delivery 118,410 tons • ANDRITZ PM Team 1,000 FTE • Local 93,780 tons • Import 24,630 tons • Oversize transports 404 • Total hours at site 15 mil
Slide 7: ANDRITZ is leader in quick start-ups of pulp mills
ANDRITZ IS LEADER IN QUICK START-UPS OF PULP MILLS Pulp mills supplied by ANDRITZ reached 10% Start-up curves of recent pulp mills (annual averages) higher production on average (vs. design) compared to other recently built mills Reasons for high performance: • Optimized processes • Reliable equipme
Slide 8: ANDRITZ provides leading solutions for the current megatrends
ANDRITZ PROVIDES LEADING SOLUTIONS FOR THE CURRENT MEGATRENDS Decarbonization Circular Economy Digitalization • Renewable Energy • Recycling • Asset Performance Management • E-Mobility • Textile Recycling • Autonomous Operation • Biofuels • CircleToZero • Industrial Cyber Security • … • A-Recovery+
Slide 9: ANDRITZ provides leading solutions for the current megatrends
ANDRITZ PROVIDES LEADING SOLUTIONS FOR THE CURRENT MEGATRENDS Decarbonization Circular Economy Digitalization • Renewable Energy • Recycling • Automation Solutions • E-Mobility • Textile Recycling • Asset Performance Management • Biofuels • Circle to Zero • Autonomous Operation • … • A-Recovery+ • I
Slide 10: CircleToZero is a shared journey
CircleToZero TM IS A SHARED JOURNEY CIRCULAR UTILIZATION OF OPERATIONS SIDE STREAMS NEW VALUE- ADDED LESS SIDE PRODUCTS STREAMS 10 / ANDRITZ CMD 2021 - PULP & PAPER CAPITAL, SEPTEMBER 15, 2021
Slide 11: CircleToZero programme overview
CircleToZero TM PROGRAMM OVERVIEW Zero Waste & Zero Emission pulp mill Goal Production of pulp - without any waste or emissions - by reusing the chemicals and - by turning all the side streams into value added products Strategy Develop technologies - to utilize existing side streams (emissions, soli
Slide 12: CircleToZero does not start from scratch
CircleToZero TM DOES NOT START FROM SCRATCH Production of Biomethanol • First plant in operation Production of sulphuric acid • First plant under construction AIR EMISSIONS SOLID WASTE EFFLUENTS 12 / ANDRITZ CMD 2021 - PULP & PAPER CAPITAL, SEPTEMBER 15, 2021
Slide 13: Pulp industry offers a potential of 98 million tons of biomethanol
PULP INDUSTRY OFFERS A POTENTIAL OF 1 MILLION TONS OF HIGH QUALITY BIOMETHANOL CURRENT METHANOL DEMAND CURRENT METHANOL SUPPLY 98,000,000 TONS 98,000,000 TONS Fuel applications ~1% Renewable Sources 1/3 ~35% 2/3 Coal ~65% Natural gas Chemicals and plastics 13 / ANDRITZ CMD 2021 - PULP & PAPER CAPITA
Slide 14: Air quality control system business from GE Steam Power
AIR QUALITY CONTROL SYSTEM BUSINESS FROM GE STEAM POWER • ANDRITZ acquired from the market leader GE the industrial dedusting business • Electrostatic Precipitators – ESP • Switch-Integrated Rectifier (SIR) • Fabric Filters (FF). • Access to an installed base of more than 2,000 plants. ESP Suzano, H
Slide 15: ANDRITZ provides leading solutions for the current megatrends
ANDRITZ PROVIDES LEADING SOLUTIONS FOR THE CURRENT MEGATRENDS Decarbonization Circular Economy Digitalization • Renewable Energy • Recycling • Automation Solutions • E-Mobility • Textile Recycling • Asset Performance Management • Biofuels • CircleToZero • Autonomous Operation • … • A-Recovery+ • Ind
Slide 16: ANDRITZ Laroche – specialist in textile recycling and natural fiber processes
ANDRITZ LAROCHE – SPECIALIST IN TEXTILE RECYCLING AND NATURAL FIBER PROCESSES Driver for future Strategic product fit for ANDRITZ Nonwoven with a growth complementary product portfolio • Fiber Opening and Blending for nonwovens • Textile Recycling • Natural Fiber Processing Textile Recycling Locatio
Slide 17: ANDRITZ Nonwoven – complete production lines for the nonwovens industry
ANDRITZ NONWOVEN – COMPLETE PRODUCTION LINES FOR THE NONWOVENS INDUSTRY A constantly growing market HIGH GROWTH DUE TO REVENUE IN MILL. EUR • Strong demand for nonwovens in medical and 300 Acquisition of Laroche 1/1/2021 hygiene products, like face masks, surgical Aquisition of Diatec gowns and drap
Slide 18: Pandemic's opportunity: face mask machine
PANDEMIC’S OPPORTUNITY: FACE MASK MACHINE Head start development in record time in April/May 2020 • Machine and process design within 6 weeks • > 100 project requests from the market within 3 weeks • > 30 Face Mask Machines already in production • Fully automated (one operator only) Machine Specific
Slide 19: Textile fiber
TEXTILE FIBER Replacement of plastic and cotton fibers offer huge business opportunities for ANDRITZ • Most of the textile fiber is based on fossil sources • The cotton sources are limited due to requirement of large areas of land and water • There is a need to substitute the fiber demand with alter
Slide 20: Textile recycling and new sustainable textile fiber processes
TEXTILE RECYCLING AND NEW SUSTAINABLE TEXTILE FIBER PROCESSES ANDRITZ is involved in eight different highly innovative R&D projects RAW MATERIAL "PULP PRODUCTION" TEXTILE FIBER PRODUCTION YARN PRODUCTION FABRIC PRODUCTION Recycled Option paper (DIP) Project 1 Possibility? Option to use DWP Option (C
Slide 21: Start-up of Bracell Project Star - major innovation in dissolving pulp production
START-UP OF BRACELL PROJECT STAR - MAJOR INNOVATION IN DISSOLVING PULP PRODUCTION • Successful start-up on September 9, 2021 • Two swing pulp lines with continuous digesters: • 2.8 mill. tpy Bleached Kraft Pulp or • 1.5 mill. tpy Dissolving Pulp (DP) • Major scale-up in DP production rate • 830 to 2
Slide 22: ANDRITZ provides leading solutions for the current megatrends
ANDRITZ PROVIDES LEADING SOLUTIONS FOR THE CURRENT MEGATRENDS Decarbonization Circular Economy Digitalization • Renewable Energy • Recycling • Automation Solutions • E-Mobility • Textile Recycling • Asset Performance Management • Biofuels • CircleToZero • Autonomous Operation • … • A-Recovery+ • Ind
Slide 23: Metris OPP: new customers added each year
METRIS OPP: NEW CUSTOMERS ADDED EACH YEAR Continuous improvement in our products and services for Asset Performance Management • Staff with experience in more than 70 contracts in 15 countries • Long-term contracts continuously running for more than 10 years • Short-term contracts with customers tra
Slide 24: Levels of autonomy
LEVELS OF AUTONOMY Rapid development towards autonomous operations 2000-2010 2010-2025 2025 - > Level/ 0 1 2 3 4 5 Name NO AUTOMATION OPERATOR PARTIAL CONDITIONAL HIGH AUTOMATION FULL AUTOMATION ASSISTANCE AUTOMATION AUTOMATION Name (Informal) Information Hands On Hands Off Eyes Off Mind Off Full Au
Slide 25: Artificial intelligence enabled autonomous log crane operation
ARTIFICIAL INTELLIGENCE ENABLED AUTONOMOUS LOG CRANE OPERATION WHY AI BASED AUTONOMOUS CRANE OPERATION? • Elimination of truck traffic reduces operating costs and improves safety level of operation • Adaptive first-in/first-out inventory management and raw material tracking from gate to cooking • Op
Slide 26: OT cyber security requires different approach and solutions
OT Cyber Security requires different approach and solutions ANDRITZ’ JV Otorio has developed 3 leading products Business Production Network Network IT OT PATCH DON’T TOUCH! Proprietary and confidential 26
Slide 27: spOT - Securing the digital machine lifecycle
spOT™ - Securing the digital machine lifecycle FAT check for every machine / delivery Lifecycle Vulnerability Management As-a- Service • Becomes part of the OEM delivery- and quality procedures • Based on the „fingerprint“ of delivered machines, spOT™ checks cyclic this configurations against • Chec
Slide 28: RAM² - Dynamic cyber security orchestration platform
RAM² - Dynamic cyber security orchestration platform Continuous Proactive Protection of the Operational Network Enriched asset inventory Feasible mitigation playbooks OT security posture Compliance and audit reports assessment Vulnerability • Operational monitoring END Customer database • Network mo
Slide 29: remOT - Secured remote access
remOT™ - Secured remote access Purposely designed to secure remote access to operational networks • Simplified OT-centered deployment and • Security-by-design closes the door for usability attackers • Zero Trust access is granted only to pre- • Governance allows for full audit and defined assets aut
Slide 30: Roadmap 2022-2024
ROADMAP 2022-2024 Improve profitability and grow business volume • Continue profitable growth • Revenue > 3,500 MEUR • EBITA > 10% • Increase share of service business to > 45% • Grow with tree to textile and textile recycling opportunities • Transfer Biorefinery/CircleToZero into business opportuni
Slide 31: Many thanks!
ANDRITZ CAPITAL MARKET DAY 2021 MANY THANKS! SEPTEMBER 15, 2021