The ANDRITZ GROUP Company presentation November 2011

Transcription

1 The ANDRITZ GROUP Company presentation November 2011

2 Contents ANDRITZ GROUP: overview Targets and outlook Results for Q Company presentation November 2011

3 Company profile A world market leader in most business areas HYDRO PULP & PAPER METALS SEPARATION** FEED & BIOFUEL ~ 4045%* ~ 3035%* ~ 10%* ~ 10%* ~ 5%* Electromechanical equipment for hydropower plants (mainly turbines and generators); pumps Systems for the production of all types of pulp and of certain paper grades (tissue, cartonboard) Systems for the production and processing of stainless steel and carbon steel strips Systems for mechanical and thermal solid/liquid separation for municipalities and various industries * Longterm average share of the Group s total order intake ** The ENVIRONMENT & PROCESS business area was renamed SEPARATION as of October 1, Company presentation November 2011 Systems for the production of animal feed and biomass pellets (wood, straw, etc.)

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 (33.3%) 2010 Ritz METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div Kaiser 2005 Lynson 2008 Maerz SEPARATION 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 2009 Delkor Capital Equipment 2009 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 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 AsselinThibeau FEED & BIOFUEL 1995 JesmaMatador 2000 UMT 2005 Chemes Strojarne 3,610 3,554 3,283 3,198 2,710 1,744 1,481 1,319 1,225 1,110 Compound Annual Growth Rate (CAGR) of Group sales : +12% p.a. (thereof approximately half organic growth) Sales () Order intake () 4 Company presentation November 2011

5 Strong net cash position Stable development despite acquisitions 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 GEHI Kufferath Maerz Rollteck Frautech Delkor DMT/Biax Rieter Perfojet Precision Machine KMPT Ritz AE&E Austria Iggesund Tools Hammerfest (33.3%) Q1Q3 11 Dividend* (): ,177 1, Q1Q Net liquidity as of end of period () * Paid out after AGM for the previous year 5 Company presentation November 2011

6 AE&E added important technologies Business area: PULP & PAPER Employees: 325 Annual sales: ~ Products: Boilers Biomass RDF sludge Circulating fluidized bed technology Flue gas cleaning Thermal power business Service Bubbling fluidized bed boiler, Mreal Hallein AG, Austria 6 Company presentation November 2011

7 ANDRITZ Iggesund Tools strengthens and complements PULP & PAPER s wood processing area Business area: PULP & PAPER (Service) Products and services: Knife systems for pulp wood chipping and saw mills Synergy: Multiplies ANDRITZ s existing knife sales to the pulp industry Employees: 160 Annual sales: 25 TurnKnife system by ANDRITZ Iggesund Tools 7 Company presentation November 2011

8 ANDRITZ AsselinThibeau strengthens nonwoven product portfolio Business area: PULP & PAPER (Service) Products and services: Systems for drylaid nonwoven production, mainly for textile and hygiene applications Synergy: With the existing nonwoven expertise of ANDRITZ Küsters and ANDRITZ Perfojet, ANDRITZ is able to supply complete vertical system solutions for production of nonwovens Employees: 200 Annual sales: 40 Filtration line of ANDRITZ AsselinThibeau 8 Company presentation November 2011

9 Contents ANDRITZ GROUP: overview Targets and outlook Results for Q Company presentation November 2011

10 Summary of key developments Order intake: strong rise in Q mainly due to HYDRO Order backlog: substantial increase in HYDRO, PULP & PAPER, and SEPARATION Sales: strong increase in Q due to PULP & PAPER EBITA and margin: improvements mainly in HYDRO and PULP & PAPER EBITA: EBITA margin: 1,254, +35% yoy Q ,325, +34% vs ,173, +31% yoy 90, +34% yoy 7.7% (Q3 2010: 7.5%) 4,899, +51% yoy Q1Q % vs ,184, +30% yoy 221, +34% yoy 7.0% (Q1Q3 2010: 6.7%) Balance sheet Equity ratio: stable Net liquidity: continuing high cash position Net working capital: unchanged at solid level 19.5% ( : 19.7%) 1,330, +13% vs , +13% vs Company presentation November 2011

11 Strong sales increase in Q Mainly driven by PULP & PAPER 2,459 Q3: 897 Q2: % +31% +31% 3,184 3,184 Q3: 1,173 Q2: 1,087 Sales of the business areas Q1Q in (+/ vs. Q1Q3 2010): HYDRO: 1,223 (+12%) PULP & PAPER: 1,273 (+66%) Q1: % Q1: 924 Q1Q Q1Q Group sales () Q1Q METALS: 263 (+7%) SEPARATION: 317 (+29%) FEED & BIOFUEL: 108 (4%) 11 Company presentation November 2011

12 High order intake in Q Strong increase in HYDRO 3,236 Q3: 932 Q2: 1,395 Q1: % +35% +42% +83% 4,899 4,899 Q3: 1,254 Q2: 1,979 Q1: 1,666 Q1Q Q1Q Group order intake () Q1Q Order intake of the business areas Q1Q in (+/ vs. Q1Q3 2010): HYDRO: 1,813 (+18%) PULP & PAPER: 2,351 (+119%) METALS: 254 (+29%) SEPARATION: 374 (+20%) FEED & BIOFUEL: 108 (3%) 12 Company presentation November 2011

13 Q1Q3 2011: Strong rise of order intake driven by some large orders in HYDRO and PULP & PAPER Order intake Q1Q vs. Q1Q in Orders > 100 Orders > 100 Orders > 10 Orders > 5 Orders > 3 Ilisu Belo Monte Eldorado Mica Montes d. P. 2,351 1, , HY PP ME SE FB 1, Q1Q Q1Q Q1Q Q1Q Q1Q Company presentation November 2011 Q1Q Q1Q Q1Q Q1Q Q1Q3 2011

14 Order intake and sales by region Well balanced geographical exposure 14 Company presentation November 2011

15 Order backlog Solid workload in all business areas Sept. 30, 2011 vs. Sept. 30, 2010: +34% Order backlog of the business areas as of Sept. 30, 2011 vs. Sept. 30, 2010: HYDRO: +13% % PULP & PAPER: +121% Sept. 30, 2010 Group order backlog as of end of period () 2010 Sept. 30, 2011 METALS: 3% SEPARATION: +14% FEED & BIOFUEL: 13% 15 Company presentation November 2011

16 Increase in EBITA, margin improved Q EBITA, at 89.8 (+34% vs. Q3 2010: 67.0 ), rose slightly more than sales, mainly driven by increases in HYDRO, PULP & PAPER, and SEPARATION EBITA margin amounted to 7.7% (Q3 2010: 7.5%) Q1Q EBITA significantly increased to (+34% vs. Q1Q3 2010: ) EBITA margin improved to 7.0% (Q1Q3 2010: 6.7%) Q3: 67.0 EBITA () +34% +34% Q3: EBITA margin (%) Q2: % Q2: 75.5 Q1: % Q1: 56.1 Q1Q Q1Q Q1Q Q Q1Q Q Company presentation November 2011

17 Results Q3 2011/Q1Q at a glance Unit Q1Q Q1Q Q Q / +/ 2010 Order intake 4, , % 1, % 4,131.9 Order backlog (as of end of period) 7, , % 7, , % 5,290.9 Sales 3, , % 1, % 3,553.8 EBITDA % % EBITA % % EBIT % % EBT % % Financial result % ,450% 2.4 Net income (including noncontrolling interests) % % Cash flow from operating activities % % Capital expenditure % % 68.8 EBITDA margin % EBITA margin % EBIT margin % Employees (as of end of period) 16,692 14, % 16,692 14, % 14, Company presentation November 2011

18 HYDRO Favorable business development Market unchanged solid market environment: High project activity for modernizations/upgrades of existing hydropower stations and pumped storage power stations in Europe and North America. Good investment activity in emerging countries of South America and Asia. Order intake in Q significantly up due to booking of Belo Monte order. Favorable development of sales, earnings, and margins. Unit Q1Q Q1Q / +/ Q Q Order intake 1, , % % 1,870.1 Order backlog (as of end of period) 3, , % 3, , % 3,376.0 Sales 1, , % % 1,579.2 EBITDA % % EBITDA margin % EBITA % % EBITA margin % Employees (as of end of period) 7,343 6, % 7,343 6, % 6, Company presentation November 2011

19 PULP & PAPER Good development of sales, earnings, and profitability Market solid project and investment activity: Satisfactory project activity for modernizations and capacity increases. Good market environment for biomass/recovery boilers. Next order awards for greenfield pulp mills expected for 2012/2013 Order intake in Q slightly down compared to last year s reference period. Favorable business development with slight margin improvement. Unit Q1Q Q1Q / +/ Q Q Order intake 2, , % % 1,388.4 Order backlog (as of end of period) 2, , % 2, , % 1,099.6 Sales 1, % % 1,105.3 EBITDA % % 98.4 EBITDA margin % EBITA % % 80.7 EBITA margin % Employees (as of end of period) 5,905 4, % 5,905 4, % 4, Company presentation November 2011

20 METALS Continuing moderate project activity Market continued moderate project activity: Low project activity in Europe and North America. Solid investment activity in emerging markets of Asia and South America. Order intake in Q higher compared to relatively low level of Q Despite sales increase, earnings down mainly due to order mix. Unit Q1Q Q1Q / +/ Q Q Order intake % % Order backlog (as of end of period) % % Sales % % EBITDA % % 21.2 EBITDA margin % EBITA % % 18.4 EBITA margin % Employees (as of end of period) % % Company presentation November 2011

21 SEPARATION Satisfactory business development Market unchanged good market conditions: Satisfactory project activity for municipal sludge dewatering plants and industrial process applications. Increasing investment activity for municipal sludge drying plants and industrial drying plants. Order intake in Q slightly down compared to Q Sales and earnings further up, profitability at good level. Unit Q1Q Q1Q / +/ Q Q Order intake % % Order backlog (as of end of period) % % Sales % % EBITDA % % 34.8 EBITDA margin % EBITA % % 29.5 EBITA margin % Employees (as of end of period) 1,937 1, % 1,937 1, % 1, Company presentation November 2011

22 FEED & BIOFUEL Good market environment Market good investment activity for both feed and biomass equipment: Satisfactory project activity in the animal feed sector. Continued good project activity for biomass/wood pelleting equipment; rising number of projects for straw pelleting. Order intake in Q up compared to reference level of last year. Sales, earnings, and profitability decreased. Unit Q1Q Q1Q / +/ Q Q Order intake % % Order backlog (as of end of period) % % 52.0 Sales % % EBITDA % % 13.0 EBITDA margin % EBITA % % 11.0 EBITA margin % Employees (as of end of period) % % Company presentation November 2011

23 Contents ANDRITZ GROUP: overview Targets and outlook Results for Q Company presentation November 2011

24 Over 4.5 bn. EUR sales targeted for 2012 due to high order intake 2011 Target to reach more than 4.5 bn. EUR sales in 2012, supported by receipt of some large orders in 2011 (especially Montes del Plata) as well as sales contributions from companies acquired in 2010 and 2011; however, achievement of goals might be negatively impacted by severe macroeconomic slowdown. Due to extremely high order intake expected for 2011 and given the prevailing uncertainties with regard to the global economy, company growth rates for 2013 and 2014 might be lower than in recent past; however: Confirmation of goal to increase sales longterm by 10% p.a. on average. > 4, > 4, H E 2012E Sales of the ANDRITZ GROUP () 24 Company presentation November 2011

25 Update on Group EBITA margin goal 7.0% over the cycle : avg. 5.3% : avg. 6.0% 2010 et seq.: 7.0% over the cycle 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1, , , , , , , , , * 3, , ,184 > 4, > 4, , Q1Q E 2012E 0 * Including restructuring expenses EBITA margin (%) Sales () 25 Company presentation November 2011

26 Update on dividend goal Sustainable dividend payout ratio on top of strong sales growth Confirmation of dividend goals: Keep payout ratio at least at 50% Midterm increase to ~ 60% Dividend per share (EUR) Payout ratio 44.1% 44.2% 34.3% 32.6% 32.5% 38.3% 40.3% 52.9% 48.9% Company presentation November 2011

27 Outlook Expectations for the business areas HYDRO: Unchanged good market environment with solid project activity for both modernizations/ upgrades and new hydropower plants; continuing low market activity in China. PULP & PAPER: Solid market environment and project activity for modernizations/upgrades of existing plants as well as for biomass/power boilers; continuing pipeline of greenfield pulp mills with next order awards expected for 2012/2013. METALS: Weak market environment and moderate project activity in Europe and North America to continue; reasonable investment activity for selective projects in the emerging markets. SEPARATION: Good market and project activity for solid/liquid separation equipment in the municipal and industrial segments. FEED & BIOFUEL: Solid market and project activity for feed and biomass pelleting equipment. Expectations for the Group Unchanged sales and earnings outlook for 2011: Sales expected to increase to over 4.0 bn. EUR, net income to rise compared to Shortterm uncertainties with regard to further development of global economy and/or China; however, longterm market drivers still in place to support longterm company growth. 27 Company presentation November 2011

28 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. 28 Company presentation November 2011