Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (August 2006)
25 slides from Andritz's investor presentation, August 2006
Slide 1: Company presentation August 2006
Company presentation August 2006
Slide 2: Disclaimer
Disclaimer Certain statements contained in this presentation constitute “forward- looking statements”. These statements, which contain the words “believe”, “intend”, “expect” and words of similar meaning, reflect management’s beliefs and expectations and are subject to risks and uncertainties that m
Slide 3: Agenda
Agenda Company profile Acquisition of VA TECH HYDRO Growth drivers for Andritz’s Business Areas Outlook and long-term goals Slide No. 3
Slide 4: A world market leader in most business areas
A world market leader in most business areas Production systems and services for: Rolling Mills & Environment & Feed Pulp & Paper Hydro Power Strip Processing Process & Biofuel 45% of 24% of 15% of 12% of 4% of Group Sales* Group Sales* Group Sales* Group Sales* Group Sales* Systems for Turnkey Syst
Slide 5: Global company with global customers
Global company with global customers ANDRITZ Oy Finland ANDRITZ Inc. USA ANDRITZ GROUP Headquarters Graz/Austria Order Intake by region (H1 2006) Employees by region (H1 2006) Austria: Germany: Others: 19% 23% Asia (excl. 3% China): 12% Europe: North 38% Total America: Others: workforce: 19% 17% 6,8
Slide 6: Strategy
Strategy Continued average sales growth of at least 10% p.a. Organic growth through intensive R&D Complementary acquisitions Global organization Expansion of service business Cost leadership Slide No. 6
Slide 7: Complementary acquisitions
Complementary acquisitions Rolling Mills and Pulp & Environment and Strip Processing Feed and Biofuel Paper Process Lines 1990 Sprout-Bauer 1997 Sundwig 1992 TCW 1995 Jesma-Matador 1992 Durametal 1998 Thermtec Engineering 2000 UMT 1994 Kone Wood 2000 Kohler 1996 Guinard 2005 Chemes Strojarne 1998 Kv
Slide 8: Highlights of H1 2006
Highlights of H1 2006 Group Order Intake in H1 2006, at over 1.2 bn. EUR, significantly over reference Order Order Intake Intake & & period of last year (+43%) Order Order Backlog Backlog High level of Order Backlog of more than 2 bn. EUR as solid basis for Sales growth in 2006 Sales Strong, m
Slide 9: Balance sheet structure
Balance sheet structure Balance sheet as of 30.6.2006 Andritz Group in MEUR 2,039 2,039 Fixed assets 356 335 Equity Goodwill 196 10 Minorities 327 Provisions Inventories 229 331 Financial liabilities (thereof 300 for bond) Cash 523 411 Advance payments Other receivables 735 625 Other liabilities S
Slide 10: Solid performance of the Andritz share
Solid performance of the Andritz share 180 160 Shareholder structure 140 Certus 120 H1 2006: +37% (CEO) 100 Since IPO in 2001: +490% 26% 80 Andritz Free float 60 Manage- 72% 40 ment 20 ATX 2% 0 2001 2002 2003 2004 2005 2006 ANDRITZ Market capitalization: ~ EUR 1.6 bn. Slide No. 10
Slide 11: Agenda
Agenda Company profile Acquisition of VA TECH HYDRO Growth drivers for Andritz’s Business Areas Outlook and long-term goals Slide No. 11
Slide 12: Acquisition of VA TECH HYDRO
Acquisition of VA TECH HYDRO Andritz VA TECH HYDRO is a global supplier of turnkey electro-mechanical equipment and services ("Water to Wire") for hydropower plants with a leading position in the growing market of plant refurbishment Among the world’s top 3 suppliers with more than 160 years of
Slide 13: Andritz VA TECH HYDRO worldwide
Andritz VA TECH HYDRO worldwide Jevnaker, Norway Prague, Czechia Ravensburg, Germany Vienna, Linz, Weiz, Graz Austria Zurich, Vevey & Kriens, Switzerland Grenoble, France Schio, Italy < Boucherville & Stoney Creek, Canada Moscow, Russia Kiev, Ukraine Beijing, China Charlotte, USA Madrid, Spain Ankar
Slide 14: Andritz and VA TECH HYDRO: combined forces
Andritz and VA TECH HYDRO: combined forces One of the leading global manufacturers of hydro power equipment with a Strong presence in virtually all categories of water turbines Competitive Excellent reputation in the market and strong customer relationships Position Large installed base and strong t
Slide 15: Agenda
Agenda Company profile Acquisition of VA TECH HYDRO Growth drivers for Andritz’s Business Areas Outlook and long-term goals Slide No. 15
Slide 16: Shift in production to Southern hemisphere
Shift in production to Southern hemisphere Fast growing plantations lead to significant cost advantages Cumulative cost curves of hardwood kraft pulp mills by region: 350 300 Eucalyptus hardwood Cost in EUR per ton 250 200 Africa 150 Asia Pacific Europe Latin America 100 North America 50 0 0 5 10 15
Slide 17: Development of chemical pulp net capacity by region 2000-2006
Development of chemical pulp net capacity by region 2000-2006 Japan -0.4 Continued mill closures in Northern hemisphere (over 5 America North -4.7 million tons since 2000) Shift of production capacity Africa +0.2 from North America to Latin America Eastern Europe +0.5 China +1.3 Pacific Asia- +1
Slide 18: World chemical pulp net capacity growth 2006-2010E
World chemical pulp net capacity growth 2006-2010E Total chemical pulp net capacity growth 2006-2010E: +16.4 million tons Change of +16.4 Total World net capacity Approx. 50% of the by region in mill. tons net capacity will be added in Latin +8.5 Latin America America, and 30% in Europe For Nort
Slide 19: Production lines 25 years or older represent 69% of capacity
Production lines 25 years or older represent 69% of capacity Age* structure of world chemical pulp lines (Q1 2006): 13% Age <15 Approximately two thirds of the world’s chemical pulp mills are 25 years and 18% Age 15-24 Age > 34 46% older Age 25-34 Most of the mills are located in the Northern hemi
Slide 20: Good project activity for Rolling Mills and Strip Processing Lines
Good project activity for Rolling Mills and Strip Processing Lines Overall continued good project activity with focus on plants for production of high-quality steel and stainless steel products, mainly in: China: modernization of domestic steel industry and continued expansion of stainless steel
Slide 21: Environment and Process: Excellent growth prospects
Environment and Process: Excellent growth prospects Andritz offers complete systems for solid/liquid separation (centrifuges, thermal driers) for various types of sludges from municipalities and industries Directives and stringent environmental regulations as long-term major growth drivers, espe
Slide 22: Agenda
Agenda Company profile Acquisition of VA TECH HYDRO Growth drivers for Andritz’s Business Areas Outlook and long-term goals Slide No. 22
Slide 23: Outlook for 2006
Outlook for 2006 Overall solid economic environment Good project activity expected to continue in all Business Areas: Pulp and Paper: modernizations and potentially some green field pulp mills in South America and Asia Steel: focus on plants for production of high-quality steel and stainless
Slide 24: Key financial objectives
Key financial objectives Continued average sales growth of 10% p.a. EBIT margin of 7% ROCE substantially above 20% Increase dividend payout ratio up to 40% Slide No. 24
Slide 25: A Global Market Leader in High-Tech Production Systems
A Global Market Leader in High-Tech Production Systems for Pulp & Paper, Steel and other Specialized Industries