Andritz Ag · VIE:ANDR
Andritz — Investor Day (2015)
32 slides from Andritz's investor day presentation, 2015
Slide 1: ANDRITZ GROUP Capital Market Day 2015, Vienna
ANDRITZ GROUP Capital Market Day 2015, Vienna
Slide 2: Contents
Contents 1 Major developments since last Capital Market Day 2 Business areas – market update 3 Capital Market Day – goals and summary
Slide 3: Acquisition of Yadon, China
Acquisition of Yadon, China ANDRITZ subsidiary Schuler acquires 51% stake >> Profile: Yadon is one of the leading manufacturers of mechanical presses in China >> Main customer segments: automotive supplying, household appliances, and metal working industries in Eastern China Yangzhou >> Annual sales
Slide 4: Acquisition of Euroslot, France
Acquisition of Euroslot, France Strengthening of PULP & PAPER service business >> Profile: Euroslot designs and manufactures filtration and separation equipment >> Main customer segments: pulp and paper industry, water and waste water ▲ Euroslot headquarters, France treatment segment, and other indu
Slide 5: Acquisition of Herr-Voss Stamco, USA
Acquisition of Herr-Voss Stamco, USA Strengthening of ANDRITZ METALS service business >> Profile: maintenance services for the steel industry and supplier of coil and sheet metal processing Locations in Pennsylvania equipment 1 Ambridge 2 Callery (Headquarters) ▲1-4 3 Conway 4 Mars >> Main c
Slide 6: METALS Development of total and service sales since 2010
METALS Development of total and service sales since 2010 Increase to 25-30% by 2018 1,600* 1,311 340 373 405 17 21* 8 10 6 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 METALS sales; in MEUR Share of service sales as % of total METAL sales *) incl. pro-forma Herr-Voss Stamco 6 Capital Market Day
Slide 7: Improve cost position
Improve cost position Shift of manufacturing capacities to emerging markets ongoing Continue to shift production from developed world to emerging markets Split of ANDRITZ production capacities by region (in %) 89% 80% Acquisition 73% Schuler Goal: 69% 50% 64% by 2017 57% 57% 58% 53% 52% 50% 50% 47%
Slide 8: ANDRITZ GROUP procurement volume 2012-2014 by region
ANDRITZ GROUP procurement volume 2012-2014 by region in % High flexibility due to global outsourcing further optimization of value chain 3,136 MEUR 1% 2,795 MEUR 2,698 8% 1% MEUR 3% Emerging markets: 22% 7% 2% 3% 7% 10% 7% 4% 11% 10% 10% Others 10% South America Asia (excl. China) China North Amer
Slide 9: Business areas – market update
Contents 1 Major developments since last Capital Market Day 2 Business areas – market update 3 Capital Market Day – goals and summary
Slide 10: HYDRO Challenging, but solid market environment
HYDRO Challenging, but solid market environment Large-scale plants Small-scale plants Pumps >> Solid, but rather slow project activity for Good activity, especially in emerging Demand for special pumps modernizations in Europe and North America markets (high energy demand, low capex to remain at goo
Slide 11: HYDRO: Development of global market volume since 2010
HYDRO: Development of global market volume for electro-mechanical equipment since 2010 >> 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 market amounts to
Slide 12: Cumulative installed hydropower capacity in GW
Cumulative installed hydropower capacity in GW Average annual growth of 3.6% expected for 2014-2025E CAGR 2014-2025E: 3.6% ■ Small hydro +2.7% 2014: more than 75% of total hydropower capacity came from large conventional ■ Pumped storage +6.6% hydropower plants with a capacity of 864 GW. The remaind
Slide 13: Large-scale hydro projects with potential order values > 100 MEUR
Large-scale hydro projects with potential order values of > 100 MEUR for electro-mechanical equipment Planned projects Country MW Total plant Time frame São Luiz do Tapajós Brazil 8,040 Medium to long term Inga 3 Congo 4,800 Medium to long term Advance work Site C Canada 1,302 Effective within next
Slide 14: HYDRO: +/- list since last CMD
HYDRO: +/- list since last CMD Stable development of margins despite slow market Success in tidal power Keep good market shares despite tougher competition Further slow-down of global project activity 14 Capital Market Day 2015, Vienna – ANDRITZ GROUP – Wolfgang Leitner
Slide 15: PULP & PAPER Good project activity, but challenging competition
PULP & PAPER Good project activity, but unchanged challenging competition Pulp Paper/packaging Nonwoven/plastic film Service >> Investments in greenfield pulp mills to >> Stable demand for tissue and >> Stable and good Good potential to continue containerboard machines, project activity grow organic
Slide 16: PULP & PAPER Good project activity for greenfield pulp mills
PULP & PAPER Good project activity for greenfield pulps mills Chile: Mozambique: Owner – project Capacity/a.* Planned start-up Owner Capacity/a.* Planned start-up Arauco – Bio-Bio 1.6 2018 et seq. Portucel 1.5 2019 et seq. Brazil: Finland: Owner – project Capacity/a.* Planned start-up Owner – projec
Slide 17: R&D success ANDRITZ A-yield pulping process
R&D success ANDRITZ A-yield pulping process Benefits 2-5 %-units higher bleached pulp yield can be achieved Reduced wood consumption Higher production rate if the recovery boiler is the bottle neck in the pulp mill Simple pay-back time is typically less than one year in capacity increase pro
Slide 18: PULP & PAPER: +/- list since last CMD
PULP & PAPER: +/- list since last CMD Final settlement of MdP case Implementation of internal measures for improved risk control/limitation with regard to large-scale projects Continued good development of the service business Receipt of large greenfield pulp mill orders (Metsä Fibre, Fibria) Market
Slide 19: METALS: good project activity driven by automotive industry
METALS: good project activity in metalforming and strip processing plants driven by automotive industry Metalforming Carbon Steel / Stainless steel Aluminum >> Good demand from automotive manufacturers, Investment activity to remain at low Good demand, especially especially in Asia and Americas unti
Slide 20: R&D success – processing lines for aluminum strips
R&D success – processing lines for aluminum strips Benefits Process know-how, 100% in-house design Cooperation with big players in the aluminum industry from Europe and the US Collaboration with research institutes and universities Hand-in-hand with the leading chemical suppliers In-house
Slide 21: METALS – RSF World market - aluminum
METALS – RSF World market - aluminum The primary aluminum production in 2014 increased by 80 Primary aluminum production (Secondary Alu) 5% to a total of 52.7 mill. t (China 52%, 27.5 mill. t). The capacity Production [million tons] 70 China utilization is >80%. Secondary aluminum production adds
Slide 22: METALS: +/- list since last CMD
METALS: +/- list since last CMD Strong development of aluminum and furnaces segments confirms good market position Restructuring Schuler proceeding Increase of service sales at „old“ ANDRITZ METALS goal to get to 25-30% by 2018 Development of Schuler service sales still below expectations Market d
Slide 23: SEPARATION Mixed development of markets
SEPARATION Mixed development of markets Municipal Industrial Feed Biomass pelleting Investment activity at reasonable >> Reasonable demand in food Continuing at solid level Stable demand to levels, mainly in developed processing and chemicals continue Market markets update >> Low project activity in
Slide 24: SEPARATION: +/- list since last CMD
SEPARATION: +/- list since last CMD Product issues in China fully resolved New organisation with 10 product homes implemented Products modified to regain competitiveness Manufacturing transfer to low cost countries underway Development of sales and profitability still clearly below targets Market ac
Slide 25: Capital Market Day – goals and summary
Contents 1 Major developments since last Capital Market Day 2 Business areas – market update 3 Capital Market Day – goals and summary
Slide 26: Review of past Capital Market Day goals
Review of past Capital Market Day goals: Dividend goals achieved, EBITA margin goal pending Goal Goal Goal not achieved pending achieved 2008 2009 2010 2011 2012 2013 2014 Share of renewable Sales: energy 4.0/4.5 bn. 5.0 bn. sales EUR EUR >50% 7.0% over the cycle Regain Regain EBITA 7.0% 7.0% >> Goa
Slide 27: Confirmation of dividend payout ratio goal
Confirmation of dividend payout ratio goal Consistent dividend policy Dividend goals: >> Maintain payout ratio at a minimum of ~50% >> Mid-term increase to ~60% Dividend per share (EUR) 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
Slide 28: Long-term EBITA margin goal per business area
Long-term EBITA margin goal per business area HYDRO PULP & PAPER 7.3 6.4 6.7 Long-term goal: Long-term goal: 5.9 8.3 8.3 8.1 8.3 8.5-9.0% 7.0-8.0% 7.5 5.2 6.7 2010 2011 2012 2013 2014 H1 2015 2010 2011 2012 2013 2013 2014 H1 2015 -1.8 METALS SEPARATION Long-term goal: Long-term goal: 7.1** 7.0-8.0%
Slide 29: Target to continue long-term profitable growth
Target to continue long-term profitable growth Goal: further improve profitability with top-line sales growth Medium-term: Increase EBITA margin to 7-8% Average with sales 2005-2009: growth % Average 6.0% 8.0 2000-2004: 6,160 MEUR 5.3% 7.2 7.2 5,859 7.1 6,000 6.9 7.0 6.5 5,711* 6.3 6.4 6.5 6.1 6.1 5
Slide 30: Group Strategy – Main goals
Group Strategy – Main goals Growth Profitability Focus on growth markets with higher growth Service: increase share of service sales to 35% opportunities EBITA margin: regain 7% and improve to 8% with top-line Expansion of product portfolio through R&D sales growth and acquisitions Dividen
Slide 31: ANDRITZ GROUP Capital Market Day 2015, Vienna
ANDRITZ GROUP Capital Market Day 2015, Vienna
Slide 32: Disclaimer
Disclaimer Certain slides contained in this presentation constitute forward-looking statements and expectations. These statements and expectations reflect the Executive Board’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As