The ANDRITZ GROUP Capital Market Days 2009, Spain

Transcription

1 The ANDRITZ GROUP Capital Market Days 2009, Spain

2 ANDRITZ Capital Market Days 2009 Contents Current developments of the ANDRITZ GROUP Acquisitions ANDRITZ s markets Capital Market Days goals Summary 2 The ANDRITZ GROUP Capital Market Days 2009, Spain

3 Order intake and book-to-bill ratio Reasonable development of order intake despite crisis Strong development of order intake over the cycle. Book-to-bill development quite stable; average 1999-H1 2009: ,750 3, ,4 1, ,083 1,121 1,300 1,394 1,837 1,975 2, , ,576 1,713 1,0 0,8 0,6 0,4 0,2 Order intake (MEUR) Linear (order intake) Book-to-bill ratio Average book-to-bill ratio H H H ,0 3 The ANDRITZ GROUP Capital Market Days 2009, Spain

4 Long-term sales development HYDRO and PULP & PAPER as main growth drivers All business areas with CAGR >10% during the last ten years. Strongest growth came from HYDRO business area. HYDRO PULP & PAPER METALS ENVIRONMENT & ROCESS FEED & BIOFUEL Share of sales by business area CAGR 5% 33% +51% 56% 37% +17% 20% 16% +17% 11% 10% +16% 8% 4% +10% Sales of the ANDRITZ Group: 3,610 MEUR +450% : + 2,954 MEUR sales, thereof contribution from... ENVIRONMENT & PROCESS: 9% METALS: 14% FEED & BIOFUEL: 3% HYDRO: 40% 656 MEUR PULP & PAPER: 34% 4 The ANDRITZ GROUP Capital Market Days 2009, Spain

5 Global presence Strong base in Europe, strong growth in emerging markets Employees more than tripled Employees : strongest growth in emerging markets Employees by region 1999 vs. 2008: stable base in Europe ~13,700 Others 1999: 2008: % 1% 7% 28% 9% 7% 12% + ~350% Asia (excl. China) China 1999: : : : 1,183 +1,153 71% 64% South America 1999: : ~3,000 North America Europe 1999: : 1, : 2, : 8,807 +6,673 Europe South America North America China Asia (excl. China) Others 5 The ANDRITZ GROUP Capital Market Days 2009, Spain

6 Capex (I) Stable development with 2.0% of sales p. a. on average 3, , , , , , * , H1 H H1 H Capex (MEUR) Depreciation (MEUR) Linear (capex in MEUR) Capex share of sales (%) Average capex share of sales Capex: additions to intangible assets and property, plant, and equipment * Excluding depreciation of assets due to restructuring (2.6% including restructuring). 6 The ANDRITZ GROUP Capital Market Days 2009, Spain

7 Capex (II) Mainly maintenance and modernization capex Increased capex during the last 12 months to enhance future competitiveness. 28 MEUR +45% 40 MEUR Others (incl. R&D, real estate, etc.) IT Manufacturing H H Capex ANDRITZ GROUP 7 The ANDRITZ GROUP Capital Market Days 2009, Spain

8 Research & Development (I) Expenses of ~100 MEUR p. a. HYDRO Pump turbines to back up wind power. Matrix turbines to minimize damming in rivers. Hydraulic design that enables complete coating of blade channels as protection against sand abrasion (India). Flow simulations for yield optimization. METALS Zinc recovery from automotive scrap. Full recycling of pickling acid. Reduction of energy consumption for the DeNOx process and of the nitrogen oxide content in annealing furnace exhaust gas. Flow simulation of a supporting blade: ANDRITZ HYDRO examines vortex trails, which can lead to blade cracks. 8 The ANDRITZ GROUP Capital Market Days 2009, Spain

9 Research & Development (II) Focus on renewable energy PULP & PAPER Effluent free pulp production. Pulp mills as green energy producers. Production of bioethanol/-diesel from cellulosic raw material. Waste paper recycling. Board machines. ENVIRONMENT & PROCESS Efficient biomass drying. Minimization of odor and TOC (Total Organic Carbon) compounds in the offgas from sludge drying plants. FEED & BIOFUEL Higher value wood pellets. Increasing capacity of extruders for the pet food and aquatic feed segments. ANDRITZ biomass-fired power boiler at the ENCE mill in Navia, Spain. 9 The ANDRITZ GROUP Capital Market Days 2009, Spain

10 Net cash position Stable development despite acquisitions : Lenser : VA TECH HYDRO : BMB : Sindus : Tigép : GE Hydro : Kufferath : Rollteck : Kuesters : Maerz : GEHI H H Net liquidity as of end of period in MEUR Linear (net liquidity as of end of period in MEUR) 10 The ANDRITZ GROUP Capital Market Days 2009, Spain

11 Restructuring to further enhance cost structure Expected cost savings of ~60 MEUR p. a. from 2010 on Restructuring expenses Q4 2008: ~14 MEUR Total expected cost savings p. a.* from 2010 on: ~20 MEUR 14 MEUR 20 MEUR Restructuring expenses Q2 2009: ~24 MEUR Total expected cost savings p. a.* from 2010 on: ~40 MEUR 24 MEUR 40 MEUR Restructuring expenses : ~38 MEUR Total expected cost savings p. a.*: ~60 MEUR * vs cost level 11 The ANDRITZ GROUP Capital Market Days 2009, Spain

12 ANDRITZ Capital Market Days 2009 Contents Current developments of the ANDRITZ GROUP Acquisitions ANDRITZ s markets Capital Market Days goals Summary 12 The ANDRITZ GROUP Capital Market Days 2009, Spain

13 ANDRITZ HYDRO Strong organic growth since acquisition of VATH and GE Hydro Complementation of product and service range. Strengthening ANDRITZ s presence in the most important hydropower markets (Europe, North and South America, and India) : acquisition of VA TECH HYDRO : acquisition of GE HYDRO CAGR H H1 2009: +66% p. a. (thereof +49% p. a. organic growth) , H H H H H H H Order intake ANDRITZ HYDRO in MEUR Linear (order intake in MEUR) 13 The ANDRITZ GROUP Capital Market Days 2009, Spain

14 GE Hydro business Completion of ANDRITZ HYDRO product and service portfolio Acquired in May ~200 MEUR annual sales. Strong expertise and reputation for large (>400 MW) Francis turbines and generators. Local player in Canada and Brasil, strong base in Sweden and Finland. Order backlog under execution so far, no negative surprises. Since acquisition, orders of ~250 MEUR received (e. g. Maua/Brazil, Campbell/Canada, Lasele/Sweden). 14 The ANDRITZ GROUP Capital Market Days 2009, Spain

15 Current market environment for acquisitions Several possibilities, but few opportunities Several possibilities in almost all business areas to further complement product and service range. Most of them are small to medium-sized companies. Opportunities in both capital and service business. With conservative 2010 EBITA assumptions, price expectations of sellers/multiples are still (too) high. Stick to long-term acquisition strategy: focus on complementary businesses at reasonable prices. No diversification. 15 The ANDRITZ GROUP Capital Market Days 2009, Spain

16 ANDRITZ Capital Market Days 2009 Contents Current developments of the ANDRITZ GROUP Acquisitions ANDRITZ s markets Capital Market Days goals Summary 16 The ANDRITZ GROUP Capital Market Days 2009, Spain

17 HYDRO Solid market with excellent long-term outlook H High project activity worldwide: modernization of existing plants in Europe and North America; new hydropower plants mainly in emerging markets. Good development of order intake in all divisions, including the pumps and turbo generator businesses. Sales and earnings increased compared to reference period of last year. Current environment and mid-/long-term drivers Climate change green electricity. Replacement of existing aged installed base in Europe and North America. Growing electricity demand in emerging markets. Economic stimulus packages renewal of infrastructure. 17 The ANDRITZ GROUP Capital Market Days 2009, Spain

18 PULP & PAPER Despite current downturn, unchanged strong long-term drivers H Low project activity in the capital business; service less affected. Order intake substantially below last years reference level; order from China (Chenming, 160 MEUR) booked in Q Margins impacted by restructuring expenses and lower sales; price pressure in (large) capital business. Restructuring underway. Current environment and mid-/long-term drivers Long-term shift of production capacity from northern to southern hemisphere to continue however, major projects currently delayed, but execution highly likely due to pre-investments in land, plantations, etc. Expansion of pulp capacities expected in China and Russia (medium-/longterm). Continuing demand for biomass/recovery boilers due to increasing environmental regulations/incentives (e. g. USA, Canada). Increasing project activity for recycled fiber lines in China. 18 The ANDRITZ GROUP Capital Market Days 2009, Spain

19 METALS Bottom appears to have been reached H Low project activity worldwide. Order intake in H1 2009, at MEUR, substantially below record high of last year; Q heavily impacted by weak market conditions. Sales, earnings, and profitability down compared to last years reference values. Current environment and mid-/long-term drivers Continuing low capacity utilization in the carbon and stainless steel industries; bottom appears to have been reached. Weak cash flows at customers limit capex for next few quarters. Single investments in special segments (automotive China). 19 The ANDRITZ GROUP Capital Market Days 2009, Spain

20 ENVIRONMENT & PROCESS Stable municipial and biomass drying businesses H Good project activity in municipal business (China, USA); lower demand in some industrial segments. Order intake down, mainly due to lower orders from industrial customers and low demand in the drying area. Flat sales; however, earnings and profitability slightly down. Current environment and mid-/long-term drivers Municipal business: expected to continue at current level or higher. Industrial business: depends on overall economy. Growing environmental awareness and more stringent regulations to support demand for environmental equipment. 20 The ANDRITZ GROUP Capital Market Days 2009, Spain

21 FEED & BIOFUEL Feed expected to recover, good pipeline for biomass projects H Low project activity in animal feed with projects delayed due to funding restrictions; reasonable project activity for biomass/wood pelletizing equipment. Order intake down compared to H1 2008, weak development in Q Earnings and margins down. Current environment and mid-/long-term drivers Large feed projects still somewhat delayed due to funding restrictions however, expected to recover mid-term. Good pipeline of biomass projects, although also somewhat affected by funding restrictions. Strong growth of biomass market expected. 21 The ANDRITZ GROUP Capital Market Days 2009, Spain

22 ANDRITZ Capital Market Days 2009 Contents Current developments of the ANDRITZ GROUP Acquisitions ANDRITZ s markets Capital Market Days goals Summary 22 The ANDRITZ GROUP Capital Market Days 2009, Spain

23 Review on targets of past Capital Market Days Achievement of targets delayed due to financial crisis CMD 2004: Become a 2 bn. Euro company by 2007 target reached in 2006 CMD 2005: Reach EBITA margin of 7% by 2008 Increase dividend payout ratio to 40% over the next few years target reached in 2008 CMD 2006: Increase of sales towards 3 bn. Euros in 2007 target reached in 2007 CMD 2007: Reach EBITA margin of 7% by 2008 CMD 2008: Increase of sales up to 4.5 bn. Euros by 2010/2011 7% EBITA margin on a sustainable basis Increase dividend payout ratio to ~50% by ,500 3, , , * 7.0 1,481 1,744 1, H E H E 2010/2011P? Sales in MEUR EBITA margin in % (* excl. restructuring expenses) 23 The ANDRITZ GROUP Capital Market Days 2009, Spain

24 Sales target 4.5 bn. Euro sales goal delayed due to financial crisis Confident to continue growth: Confirmation of goal to increase sales by 10% p. a. on average. CAGR : +21% p. a. (thereof 13% p. a. organic growth). However, 4.5 bn. goal delayed due to financial crisis. 4,500 3,283 3,610 Range depends on overall economy and on M&A success. 2, ,319 1,110 1,225 1,481 1,744 1, H Sales in MEUR Linear (sales in MEUR) / 2011E Target achievement most likely delayed due to financial crisis. 24 The ANDRITZ GROUP Capital Market Days 2009, Spain

25 EBITA margin target 7% over the cycle EBITA margin H1 2009: 5.1% excl. restructuring expenses 3.6% incl. restructuring expenses 3,283 3,610 Margin development depends on overall economy and on M&A success. 2, , ? ,319 1,110 1,225 1, H Average EBITA margin : 4.8% Average EBITA margin : 6.3% * excl. restructuring expenses 2010/ 2011P Sales (in MEUR)? 25 The ANDRITZ GROUP Capital Market Days 2009, Spain

26 Dividend Sustainable dividend payout ratio on top of strong sales growth Dividend per share (EUR) E Payout ratio 44.1% 44.2% 34.3% 32.6% 32.5% 38.3% 40.3% ~50.0% E Dividends adjusted for share split of 1:4 26 The ANDRITZ GROUP Capital Market Days 2009, Spain

27 Target for renewable energy sales Long-term more than 50% of Group sales ANDRITZ s renewable energy products: Equipment for hydropower stations. Recovery boilers/ power boilers for the pulp and paper industry. Biomass drying. Biomass pelletizing. Equipment for biofuel production (second generation) % 1, % 2,710 46% 3,283 1,520 49% 3,610 1,771 1,574 55% ,500 >50% H E 2010E 2011E Total sales (MEUR) Renewable energy sales (MEUR) Renewable energy sales share of total sales 2, The ANDRITZ GROUP Capital Market Days 2009, Spain

28 ANDRITZ Capital Market Days 2009 Contents Current developments of the ANDRITZ GROUP Acquisitions ANDRITZ s markets Capital Market Days goals Summary 28 The ANDRITZ GROUP Capital Market Days 2009, Spain

29 Summary Solid business development despite crisis due to broad diversification, strong cash position and solid balance sheet structure. Implemented restructuring measures to adjust cost structure to lower business volume and to enhance future competitiveness. Business development impacted by economic crisis short-term; however, long-term growth drivers and structural trends should ensure long-term growth of ANDRITZ. Achievement of 4.5 bn. sales and 7% EBITA margin goals (Capital Market Days 2008) delayed due to financial crisis, but still valid. Targets Capital Market Days 2009: Confirmation of 4.5 bn. sales and 7% EBITA margin goals. Long-term goal to have more than 50% of Group sales coming from renewable energy products. 29 The ANDRITZ GROUP Capital Market Days 2009, Spain

30 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 may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law. Note: 2008 figures restated. 30 The ANDRITZ GROUP Capital Market Days 2009, Spain