The ANDRITZ GROUP Company presentation July 2013

Transcription

1 The ANDRITZ GROUP

2 Contents ANDRITZ GROUP overview and current development Long-term goals and outlook 2

3 Company profile A world market leader in most business areas HYDRO 35-40%* PULP & PAPER 25-30%* METALS 25%* SEPARATION 10%* Electromechanical Systems and equipment Presses for metal- Equipment for solid/ equipment for hydro- for production of pulp, forming; systems for liquid separation for power plants (turbines paper, tissue, and board; production and process- municipalities and and generators); pumps energy boilers; produc- ing of stainless steel, various industries; (e.g. for water transport tion equipment for bio- carbon steel, and non- systems and equipment and irrigation); turbo- fuel/biomass; plants for ferrous metal strip; in- for production of animal generators for thermal production of nonwovens dustrial furnaces; resist- feed pellets power stations and plastic films ance welding equipment * Average share of ANDRITZ GROUP s total order intake 3

4 Strengthening of market position Growth through organic expansion and acquisitions Recent acquisitions by business area HYDRO 2006 VA TECH HYDRO 2007 Tigép 2008 GE Hydro business 2008 GEHI (JV) 2010 Precision Machine 2010 Hammerfest Strøm (59%) 2010 Ritz 2011 Hemicycle Controls PULP & PAPER 1990 Sprout-Bauer 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 Carbona 2006 Pilão 2007 Bachofen + Meier 2007 Sindus 2008 Kufferath 2009 Rollteck 2010 Rieter Perfojet 2010 DMT/Biax 2011 AE&E Austria 2011 Iggesund Tools 2011 Tristar Industries 2011 Asselin-Thibeau 2012 AES METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div Kaiser 2005 Lynson 2008 Maerz 2012 Bricmont 2012 Soutec 2013 Schuler (> 90%) 2013 FBB Engineering SEPARATION 1992 TCW Engineering 1995 Jesma-Matador 1996 Guinard 2000 UMT SYS 2004 Bird Machine 2004 NETZSCH Filtration 2004 Fluid Bed Systems 2005 Lenser Filtration 2006 CONTEC Decanter 2009 Delkor Capital Equipment 2009 Frautech 2010 KMPT 2012 Gouda 2013 Shende Machinery (80%) Sales of the ANDRITZ GROUP (MEUR) 4

5 Continuing strong net cash position Schuler fully paid Ahlström rem. 50% Guinard rem. 50% Fläkt Selas Fiedler IDEAS Acutest Thermtec rem. 24.5% Kaiser AFSR Netzsch Bird Lenser Universal Lynson VA TECH HYDRO Kuesters BMB Tigép Sindus GE Hydro Rollteck GEHI Frautech Kufferath Delkor Maerz DMT/Biax Rieter Perfojet Precision Machine KMPT Ritz Hammerfest (33%) AE&E Austria Iggesund Tools Tristar Industries AES Asselin- Thibeau Hemicycle Controls Hammerfest (59%) Bricmont Soutec Schuler (~25%) Gouda Schuler (>65%) Shende Machinery (80%) FBB Q Dividend* (MEUR): * Paid out after AGM for the previous year 5

6 Key figures Q at a glance Order intake: solid level however, decline compared to high reference figure of last year Order backlog (as of end of period): substantial increase due to Schuler Sales: slight decline mainly due to PULP & PAPER EBITA and EBITA margin: strong decrease mainly due to PULP & PAPER (provisions for pulp mill project in South America) EBITA: EBITA margin: Q Q /- 1,288 MEUR (thereof Schuler: 96 MEUR) 7,844 MEUR (thereof Schuler: 1,126 MEUR) 1,164 MEUR (thereof Schuler: 109 MEUR) 14 MEUR 1.2% 1,361 MEUR -5% 7,035 MEUR +12% 1,186 MEUR -2% 73 MEUR 6.1% -80% - Balance sheet March 31, 2013 Dec. 31, /- Equity ratio: decline due to Schuler acquisition 15.8% 20.0% - Net liquidity: continuing high cash position despite Schuler acquisition 885 MEUR 1,286 MEUR -31% Net working capital: stable at solid level -586 MEUR -632 MEUR -7% The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available 6

7 Sales slightly down strong decline in PULP & PAPER due to significant sales contribution of large pulp projects in Q Group sales (MEUR) Sales by business area Q vs. Q thereof Schuler: 109 HYDRO: -6% 1,186-2% 1,164 PULP & PAPER: -20% METALS: +126% (+3% ex Schuler) SEPARATION: -1% 7 Q Q Q The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available. The FEED & BIOFUEL business area was allocated to the SEPARATION business area as of January 1, 2013; the reference figures for the previous year were adjusted accordingly.

8 Solid order intake however, decline compared to high reference figure of last year Group order intake (MEUR) Order intake by business area Q vs. Q thereof Schuler: 96 HYDRO: -4% 1,361-5% 1,288 PULP & PAPER: -20% METALS: +125% (-25% ex Schuler) SEPARATION: -14% Q Q Q The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available. The FEED & BIOFUEL business area was allocated to the SEPARATION business area as of January 1, 2013; the reference figures for the previous year were adjusted accordingly.

9 Order intake and sales by region Well-balanced geographical exposure Order intake Q Q Europe 42% 47% North America 13% 13% South America 7% 15% Asia (without China) 25% 10% China 7% 7% Others 6% 8% Sales Q Q Europe 45% 37% North America 15% 13% South America 15% 25% Asia (without China) 11% 13% China 10% 9% Others 4% 3% Europe + North America: 55% Emerging markets: 39% Others: 6% Europe + North America: 60% Emerging markets: 36% Others: 4% 9

10 Order backlog significantly up due to Schuler Group order backlog as of end of period (MEUR) Order backlog by business area Q vs. Q (as of end of period) Q vs. Q1 2012: +12% thereof Schuler: 1,126 HYDRO: +2% 7,844 6,683 7,035 6, % 5,291 PULP & PAPER: -14% METALS: +225% (-14% ex Schuler) SEPARATION: -4% Q Q Q The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available. The FEED & BIOFUEL business area was allocated to the SEPARATION business area as of January 1, 2013; the reference figures for the previous year were adjusted accordingly. 10

11 EBITA and margin significantly down due to PULP & PAPER and SEPARATION EBITA, at 14.2 MEUR, decreased by 80% versus Q (72.5 MEUR), thus declining significantly more than sales EBITA in PULP & PAPER down to MEUR (Q1 2012: 30.4 MEUR) EBITA in SEPARATION declined to -2.1 MEUR (Q1 2012: 7.7 MEUR) due to cost overruns (technical problems related to market launch of some new products in China) EBITA (MEUR) EBITA margin (%) EBITA margin by business area (%) 73 HY PP ME SE HY: 30 PP: 30 ME: 5 SE: 8-80% 14 Q Q Q Q The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available 11

12 Significant drop in earnings due to provisions in PULP & PAPER EBITA in PULP & PAPER down to MEUR in Q (Q1 2012: 30.4 MEUR) due to mid-double-digit provisions related to a pulp mill project in South America ANDRITZ believes that certain parts of these additional costs are not within its responsibility and will pursue to get reimbursed From today s point of view, the current provision level is expected to be sufficient; however, further provisions in the coming quarters cannot be excluded 12

13 Key figures Q at a glance Unit Q Q / Order intake MEUR 1, , % 4,924.4 Order backlog (as of end of period) MEUR 7, , % 6,614.8 Sales MEUR 1, , % 5,176.9 EBITDA MEUR % EBITA MEUR % EBIT MEUR % EBT MEUR % Financial result MEUR % -2.8 Net income (including non-controlling interests) MEUR % Cash flow from operating activities MEUR % Capital expenditure MEUR % EBITDA margin % EBITA margin % EBIT margin % Employees (as of end of period; without apprentices) - 23,660 17, % 17,865 The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available

14 Schuler: Global leader in metal forming technology, broadening ANDRITZ s product range in METALS Global market leader for metal forming equipment (complete pressing lines, single presses, automation systems, and services) Main end customer industries: automotive and automotive suppliers (~75%), packaging, household appliances, minting, aerospace (~25%) Annual sales: ~1.1 bn. EUR Backlog*: ~1.1 bn. EUR ~5,500 employees* in more than 40 countries Sales by region*: Germany 36% Europe (without Germany) 19% Asia 29% America 16% * As of March 31, 2013 ** Including Müller Weingarten Group April 1-September 30 Order intake, sales, and EBITDA margin of Schuler Group CAGR order intake: +9% CAGR sales: +11% EBITDA margin: avg. 7.1% 1,400 1,200 1, , ,319 1,301 1, /07** 2007/ / / / /12 H1 2012/13 Order intake (MEUR) Sales (MEUR) EBITDA margin (%)

15 Status on Schuler Takeover-offer successfully closed in mid-february 2013 Integration teams formed to conduct status quo assessment for relevant company functions within ANDRITZ and Schuler Based on these results, decisions will be taken about integration and organizational measures, both within Schuler Group and between ANDRITZ and Schuler First overview about integration measures, costs, and benefits expected by end of summer 2013 Foto: BMW AG/Martin Klindtworth 15

16 Contents ANDRITZ GROUP overview and current development Long-term goals and outlook 16

17 Target to continue long-term profitable growth 7.0% EBITA margin over the cycle : avg. 5.3% : avg. 6.0% 2010 et seq.: 7.0% over the cycle , * 3,283 3,610 3, ,554 4, ,177 6,000 5,000 4,000 3, ,319 1,110 1,225 1,481 1,744 2,000 1, * Including restructuring expenses EBITA margin (%) Sales (MEUR) 17

18 Outlook HYDRO, PULP & PAPER, METALS HYDRO Hydropower: solid project activity (however below peak levels of previous years) for modernizations and rehabilitation of hydropower stations to continue due to age of installed base Pumps: satisfactory investment activity PULP & PAPER Pulp: good project activity for modernizations/upgrades; solid pipeline of greenfield mills however, stiff price competition expected for these large-scale projects Power/biomass boiler and biomass pelleting: favorable investment activity Paper and board: selective investments, mainly in Asia; good project activity for tissue and container board METALS Metal forming: signs of slowing demand in the automobile sector, however solid investment activity in emerging markets Stainless steel: unchanged very low project activity in the stainless steel industry due to ongoing overcapacities and related limited capex Carbon steel: slight increase in project activity noted still uncertain if this is sustained or not 18

19 Outlook SEPARATION and ANDRITZ GROUP SEPARATION Municipalities: solid investment activity to continue Mining and minerals: low demand for equipment due to volatility of metal prices and economic slowdown in some regions several project delays/cancellations Food and chemical: satisfactory project activity Animal feed: good project activity in conventional and special feed Macroeconomic conditions and expectations for the Group Macroeconomic environment: no major change expected for the remainder of 2013 Group sales: increase compared to 2012, mainly due to consolidation of Schuler Group net income: expected to decrease compared to 2012 due to earnings decline in PULP & PAPER and scheduled amortization of intangible assets related to acquisition of Schuler 19

20 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. All figures according to IFRS. Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages. MEUR = million euros. 20