The ANDRITZ GROUP Company presentation November 2010

Transcription

1 The ANDRITZ GROUP Company presentation November 2010

2 Contents ANDRITZ GROUP: overview Q1Q results Targets and outlook 2 Company presentation November 2010

3 Company profile A world market leader in most business areas ~4045% of Group s order intake. ~3035% of Group s order intake. ~10% of Group s order intake. ~10% of Group s order intake. ~5% of Group s order intake. Electromechanical equipment for hydropower plants; pumps. Systems for production of all types of pulp and certain paper grades. Systems for production and processing of stainless steel and carbon steel strips. Systems for mechanical and thermal solid/liquid separation. Systems for production of animal feed and wood/biofuel pellets. 3 Company presentation November 2010

4 Strengthening of the market position Growth through organic expansion and acquisitions HYDRO 2006 VA TECH HYDRO 2007 Tigép 2008 GE Hydro business 2008 GEHI (JV) 2010 Precision Machine 2010 Hammerfest Strøm 2010 Ritz METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div Kaiser 2005 Lynson 2008 Maerz ENVIRONMENT & PROCESS 1992 TCW Engineering 1996 Guinard SYS 2004 Bird Machine 2004 NETZSCH Filtration 2004 Fluid Bed Systems of VA TECH WABAG 2005 Lenser Filtration 2006 CONTEC Decanter Delkor Capital Equipment Frautech 2010 KMPT PULP & PAPER 1990 SproutBauer 1992 Durametal 1994 Kone Wood 1998 Kvaerner Hymac 1999 Winberg 2000 Ahlstrom Machinery 2000 Lamb Baling Line 2000 Voith Andritz Tissue LLC (JV) 2002 ABB Drying 2003 IDEAS Simulation 2003 Acutest Oy 2003 Fiedler 2004 EMS (JV) 2005 Cybermetrics 2005 Universal Dynamics Group 2006 Küsters 2006 Pilão 2007 Bachofen + Meier 2007 Sindus 2008 Kufferath Rollteck 2010 Rieter Perfojet 2010 DMT/Biax FEED & BIOFUEL 1995 JesmaMatador 2000 UMT 2005 Chemes Strojarne 937 2,710 1,744 1,481 1,319 1,110 1,225 3,610 3,283 3,198 Compound Annual Growth Rate (CAGR) of Group sales 2000: +15% p.a. (thereof +7% p.a. organic growth) Sales of the ANDRITZ GROUP () 4 Company presentation November 2010

5 Longterm order intake development HYDRO as main growth driver CAGR order intake ANDRITZ GROUP 2000: +13% HYDRO, ENVIRONMENT & PROCESS, and METALS with CAGR 10% during the last ten years. Strongest growth came from HYDRO. HYDRO PULP & PAPER METALS ENVIRONMENT & PROCESS FEED & BIOFUEL % 68% 12% 11% 7% Share of order intake by business area 51% 27% 9% 9% 4% CAGR +59% +3% +10% +11% +7% Order intake of the ANDRITZ GROUP: 3, : + 2,267 order intake, thereof contribution from % FEED & BIOFUEL: 3% ENVIRONMENT & PROCESS: 8% METALS: 7% HYDRO: 74% 1,083 PULP & PAPER: 8% Company presentation November 2010

6 Global presence Strong base in Europe, strong growth in emerging markets Employees 2000 more than tripled Employees 2000: strongest growth in emerging markets Employees by region 2000 vs. : strong base in Europe + ~210% ~13,000 Others North America South America 2000: : : 840 : 1, : 3 : % 1% 1% 1% Emerging 9% markets 27% 9% 70% Europe and North America 7% 11% 63% ~4,200 China 2000: 36 : 1,128 +1,092 Asia (excl. China) Europe 2000: : 8 1,191 +1, : 3,345 : 8,242 +4, Europe North America South America China 2000 Asia (excl. China) Others 6 Company presentation November 2010

7 ANDRITZ share Solid performance and broad research coverage Relative share price performance of the ANDRITZ share versus the ATX since the IPO 1,000% 800% ANDRITZ ANDRITZ: +904% Successful 5years performance 600% % 400% 200% IPO of ANDRITZ: June 25, 2001 ATX ATX: +105% % +3% 54% +111% S = Share split of 1:4 on 3 May, 2007 Q1Q % Broad research coverage 7 Company presentation November 2010

8 Contents ANDRITZ GROUP: overview Q1Q results Targets and outlook 8 Company presentation November 2010

9 ANDRITZ GROUP Q3 2010/Q1Q results at a glance Favorable business development in Q Order intake: 932 in Q3 2010: +11% vs. Q3 3,236 in Q1Q3 2010: +27% vs. Q1Q3 Order backlog: 5,478 as of September 30, 2010: 21% vs. September 30, ; +24% vs. December 31, Sales: 897 in Q3 2010: +19% vs. Q3 2,459 in Q1Q3 2010: +6% vs. Q1Q3 EBITA: 67 EBITA in Q3 2010: +47% vs. Q3 7.5% EBITA margin in Q (6.0% in Q3 ) 165 EBITA in Q1Q3 2010: +62% vs. Q1Q3 6.7% EBITA margin in Q1Q (4.4% in Q1Q3 ; 5.4% excluding restructuring expenses) Net income (excluding noncontrolling interests): 47 in Q3 2010: +75% vs. Q3 115 in Q1Q3 2010: +92% vs. Q1Q3 9 Company presentation November 2010

10 Sales: strong increase in Q HYDRO, PULP & PAPER, and ENVIRONMENT & PROCESS as main growth drivers 2, % 2, , / Q1Q vs. Q1Q3 : Q3: % Q3: HYDRO: +10% Q2: % Q2: PULP & PAPER: +14% Q1: % Q1: Q1Q3 Q1Q Group sales () Q1Q METALS: 30% ENVIRONMENT & PROCESS: +8% FEED & BIOFUEL: +21% 3,197.5 Q1Q , % of sales 10 Company presentation November 2010

11 Order intake Solid development in all business areas except METALS 3, , ,554.9 Q3: % +11% Q3: / Q1Q vs. Q1Q3 : HYDRO: +12% Q2: % Q2: 1,395.3 PULP & PAPER: +78% Q1: % Q1: Q1Q3 Q1Q Group order intake () Q1Q METALS: 25% ENVIRONMENT & PROCESS: +34% FEED & BIOFUEL: +41% 3,349.3 Q1Q , % of order intake 11 Company presentation November 2010

12 Order intake Q1 2008Q Favorable development during the economic crisis Q Q Q Q Q1 Q2 Q3 Q4 Q Q Q Average order intake Q1 2008Q3 2010: 935 Group order intake () 12 Company presentation November 2010

13 Order intake and sales by region Well balanced geographical exposure Order intake by region Q1Q (Q1Q3 ) in % Sales by region Q1Q (Q1Q3 ) in % 13 Company presentation November 2010

14 Order backlog Solid workload in all business areas vs : +21% 5,478 4,277 4,515 4,435 +/ vs : HYDRO: +18% 3,843 3,397 1, % PULP & PAPER: +62% METALS: 20% ENVIRONMENT & PROCESS: +59% FEED & BIOFUEL: +76% Group order backlog as of end of period () 14 Company presentation November 2010

15 Earnings EBITA and EBITA margin significantly increased EBITA of the Group in Q3 2010, at 67, 47% higher than in Q3 (46 ); thus, increasing significantly stronger than sales. EBITA margin in Q rose to 7.5% (Q3 : 6.0%). In Q1Q3 2010, EBITA significantly increased to 165 (Q1Q3 : 102 ; 126 excluding restructuring expenses). EBITA margin rose to 6.7% (Q1Q3 : 4.4%; 5.4% excluding restructuring expenses). EBITA () EBITA margin 6.7% % +47% Q3: % Q3: 45.5 Q2: % Q2: 54.2 Q1: /0% Q1: 43.7 Q1Q3 Q1Q Q1Q3 Q1Q Company presentation November 2010

16 Results Q1Q Continued strong cash flow generation Unit Q1Q Q1Q3 Q Q3 +/ +/ Order intake 3, , % % 3,349.3 Order backlog (as of end of period) 5, , % 5, , % 4,434.5 Sales 2, , % % 3,197.5 EBITDA % % EBITA % % EBIT % % EBT % % Financial result % % 2.6 Net income (incl. noncontrolling interests) % % Cash flow from operating activities % % Capital expenditure % % 70.5 EBITDA margin % EBITA margin % EBIT margin % Employees (as of end of period) 14,267 13, % 14,267 13, % 13, Company presentation November 2010

17 Solid balance sheet structure as of September 30, 2010 Substantial increase of cash position, unchanged high negative net working capital Total assets and equity: Total assets increased to 3,768 (December 31, : 3,309 ). Equity ratio amounted to 19.4% (December 31, : 20.0%). Cash position and working capital: Liquid funds amounted to 1,421 (December 31, : 1,082 ). Net liquidity increased to 1,002 (December 31, : 678 ). Low net working capital of 417 (104 as of December 31, ). Net liquidity as of end of period () 1, Q Company presentation November 2010

18 HYDRO Continuation of favorable development Market: project activity for hydropower equipment remained high; favorable demand for modernizations and upgrades of installed capacities in Europe and North America, as well as for pumped storage power stations in Europe; good project activity for new hydropower capacities, especially in South America and Asia; positive development of project activity for smallscale hydropower plants, especially in Turkey. Favorable development of order intake in Q Sales and earnings also up; profitability slightly down compared to the high level of Q3 however, reaching a solid level. Unit Q1Q Q1Q3 +/ +/ Q Q3 Order intake 1, , % % 1,693.9 Order backlog (as of end of period) 3, , % 3, , % 2,894.5 Sales 1, % % 1,378.0 EBITDA % % EBITDA margin % EBITA % % EBITA margin % Employees (as of end of period) 6,147 5, % 6,147 5, % 5, Company presentation November 2010

19 PULP & PAPER Project activity showed further signs of recovery Market: good project activity for pulp and paper equipment worldwide especially for modernizations and capacity increases in Europe and North America due to continuing solid pulp demand, low inventory levels, and relatively full order books in the paper industry; planning activity for new pulp mill projects continued. Solid development of order intake in Q Significant increase of sales, earnings, and profitability. Unit Q1Q Q1Q3 +/ +/ Q Q3 Order intake 1, % % Order backlog (as of end of period) 1, % 1, % Sales % % EBITDA % % 42.0 EBITDA margin % EBITA % % 17.5 EBITA margin % Employees (as of end of period) 4,849 4, % 4,849 4, % 4, Company presentation November 2010

20 METALS Low project activity; solid profitability Market: in spite of relatively good global capacity utilization of steel plants, very moderate project activity continued due to persistent uncertainty regarding the economic development in the next few quarters and the slight drop in steel prices influenced by overcapacities in certain segments; only few orders, especially from Asia, with focus on stainless steel market. Order intake in Q significantly below the high figure of Q3. Sales down; however, profitability remained at a solid level. Unit Q1Q Q1Q3 +/ +/ Q Q3 Order intake % % Order backlog (as of end of period) % % Sales % % EBITDA % % 23.2 EBITDA margin % EBITA % % 20.5 EBITA margin % Employees (as of end of period) % % Company presentation November 2010

21 ENVIRONMENT & PROCESS Order intake, sales, earnings, and profitability significantly up Market: satisfactory project activity for sludge dewatering, especially in Europe and Asia; considerable project activity for industrial process applications (especially in the mining and petrochemical industries), with the most active regions in China, India, Russia, and the Middle East; while project activity for sludge drying plants in the municipal sector remained moderate, project activity for industrial drying plants was satisfactory. Order intake in Q significantly higher than in Q3, due to both strong organic growth and firsttime consolidation of acquired companies (KMPT, Delkor). Sales, earnings, and profitability developed very favorably. Unit Q1Q Q1Q3 +/ +/ Q Q3 Order intake % % Order backlog (as of end of period) % % Sales % % EBITDA % % 29.3 EBITDA margin % EBITA % % 24.6 EBITA margin % Employees (as of end of period) 1,777 1, % 1,777 1, % 1, Company presentation November 2010

22 FEED & BIOFUEL Very good development of wood pelleting and feed sectors Market: favorable project activity in the animal feed sector, mainly in South America, Asia, and Eastern Europe; continuation of good project activity for biomass/wood pelleting equipment in Europe and North America and to an increasing extent in Asia and South America. Order intake in Q significantly up compared to Q3. Very good development of sales, earnings, and profitability. Unit Q1Q Q1Q3 +/ +/ Q Q3 Order intake % % Order backlog (as of end of period) % % 57.6 Sales % % EBITDA % n. a. 2.8 EBITDA margin % EBITA % % 1.0 EBITA margin % Employees (as of end of period) % % Company presentation November 2010

23 Contents ANDRITZ GROUP: overview Q1Q results Targets and outlook 23 Company presentation November 2010

24 Sales target 4.5 bn. Euro sales goal targeted for 2013/2014 Confident to continue growth: Confirmation of goal to increase sales by 10% p. a. on average. CAGR 2000: +15% p. a. (thereof 7% p. a. organic growth). 4.5 bn. goal, delayed due to crisis, should be reached 2013/2014. Sales () 4,500 3,283 3,610 3,198 2,710 2, ,319 1,110 1,225 1,481 1, Q1Q /2014 E 24 Company presentation November 2010

25 EBITA margin target 7% over the cycle : average 5.3% 2005: average 6.0% 2010 ff.: 7% over the cycle ,319 1,110 1, ,481 1, , ,283 3,610 3, , Q1Q * 4, E 4,500 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 1,000 1, * Incl. restructuring expenses EBITA margin (%) Sales () 25 Company presentation November 2010

26 Earnings per share Assumptions for 2014E EPS calculation: 4.5 bn. EUR sales; 7% EBITA margin; 30% tax rate. EPS (EUR) CAGR E : +17.2% CAGR 2000 : +17.3% E 26 Company presentation November 2010

27 Dividend payments Sustainable dividend payout ratio on top of strong sales growth Goals: Keep payout ratio by at least 50%. Midterm increase to ~60% Dividend per share (EUR) % 44.2% 34.3% Payout ratio 32.6% 32.5% 38.3% 40.3% 52.9% Dividends adjusted for share split of 1:4 27 Company presentation November 2010

28 Outlook Sales 2010 expected to slightly increase vs. Expectations for the business areas: HYDRO: continuing positive project activity for both modernizations/upgrades and new hydropower plants. PULP & PAPER: acceptable project activity for greenfield pulp and paper mills. METALS: moderate project activity expected to continue with only selective projects for special endmarket products in emerging markets (automotive and household applications industries). ENVIRONMENT & PROCESS: continuation of favorable project activity for mechanical and thermal solid/liquid separation. FEED & BIOFUEL: satisfactory project activity for both feed and biomass pelleting equipment. Expectations for the ANDRITZ GROUP: Sales 2010 slightly up compared to. Earnings positively impacted by restructuring measures implemented in 2008/. 28 Company presentation November 2010

29 Disclaimer Certain statements contained in this presentation constitute forwardlooking 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 forwardlooking statements. The Company disclaims any obligation to publicly announce the result of any revisions to the forwardlooking statements made herein, except where it would be required to do so under applicable law. According to IFRS. 29 Company presentation November 2010