COMPANY PRESENTATION ANDRITZ GROUP MARCH 2018

Transcription

1 COMPANY PRESENTATION ANDRITZ GROUP MARCH 2018

2 CHAPTER OVERVIEW ANDRITZ GROUP OVERVIEW RESULTS 2017 OUTLOOK AND FINANCIAL TARGETS 2 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

3 THE ANDRITZ GROUP ANDRITZ is a globally leading supplier of plants, equipment, systems and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass pelleting. Global presence Headquarters in Graz, Austria; over 250 production sites and service/sales companies worldwide KEY FINANCIAL FIGURES: SALES BY REGION 2017 (%) UNIT Order intake MEUR 5, ,568.8 Order backlog (as of end of period) MEUR 6, ,789.2 Sales MEUR 5, ,039.0 Europe & North America: 58% 5,889 MEUR Emerging markets: 42% Net income (including non-controlling interests) MEUR Employees (as of end of period; without apprentices) - 25,566 25,162 3 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

4 A WORLD MARKET LEADER WITH FOUR BUSINESS AREAS HYDRO PULP & PAPER METALS SEPARATION % order intake* % order intake* % order intake* % order intake* PRODUCT OFFERINGS PRODUCT OFFERINGS PRODUCT OFFERINGS PRODUCT OFFERINGS Electromechanical equipment for hydropower plants (turbines, generators); pumps; turbo generators. * Share of total Group order intake Equipment for production of all types of pulp, paper, tissue, and board; energy boilers. Presses/press lines for metal forming (Schuler); systems for production of stainless steel, carbon steel, and non-ferrous metal strip; industrial furnace plants. Equipment for solid/liquid separation for municipalities and various industries; equipment for production of animal feed and biomass pellets. 4 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

5 LONG-TERM GROWTH BASED ON ACQUISITIONS AND ORGANIC EXPANSION Compound Annual Growth Rate (CAGR) of Group sales : +6% p.a. (thereof approximately half from organic growth) 5,711 5,859 6,377 6,039 5,889 5,177 4,596 3,283 3,610 3,198 3, Sales (MEUR) Order intake (MEUR) 5 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

6 STRENGTHENING OF MARKET POSITION BY ACQUISITIONS Acquisitions by business area since 1990 HYDRO PULP & PAPER METALS SEPARATION 2006 VA TECH HYDRO 1990 Sprout-Bauer 2006 Pilão 1997 Sundwig 1992 TCW Engineering 2007 Tigép 1992 Durametal 2007 Bachofen + Meier 1998 Thermtec 1995 Jesma-Matador 2008 GE Hydro business 1994 Kone Wood 2007 Sindus 2000 Kohler 1996 Guinard 2010 GEHI (JV) 1998 Kvaerner Hymac 2008 Kufferath 2002 SELAS SAS Furnace Div UMT 2010 Precision Machine 1999 Winberg 2009 Rollteck 2004 Kaiser SYS 2010 Hammerfest Strøm 2000 Ahlstrom Machinery 2010 Rieter Perfojet 2005 Lynson 2004 Bird Machine 2010 Ritz 2000 Lamb Baling Line 2010 DMT/Biax 2008 Maerz 2004 NETZSCH Filtration 2011 Hemicycle Controls 2000 Voith Andritz Tissue 2011 AE&E Austria 2012 Bricmont 2004 Fluid Bed Systems 2002 ABB Drying 2011 Iggesund Tools 2012 Soutec 2005 Lenser Filtration 2003 IDEAS Simulation 2011 Tristar Industries 2013 Schuler (> 95%) 2006 CONTEC Decanter 2003 Acutest Oy 2011 Asselin-Thibeau 2013 FBB Engineering 2009 Delkor Capital Equipment 2003 Fiedler 2012 AES 2014 Herr-Voss Stamco 2009 Frautech 2004 EMS (JV) 2013 MeWa 2016 Yadon 2010 KMPT 2005 Cybermetrics 2015 Euroslot 2016 AWEBA 2012 Gouda 2005 Universal Dynamics Group 2016 SHW Casting Technologies 2017 Powerlase (51%) 2013 Shende Machinery 2006 Küsters 2017 Paperchine 2016 ANBO 2006 Carbona 6 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

7 CHAPTER OVERVIEW ANDRITZ GROUP OVERVIEW RESULTS 2017 OUTLOOK AND FINANCIAL TARGETS 7 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

8 GROUP SALES SLIGHTLY BELOW LEVEL OF LAST YEAR Decrease mainly due to Hydro as a result of lower order intake in the past few years. SALES (MEUR) SALES BY BUSINESS AREA (MEUR) 6, % 5, /- Hydro 1,583 1,752-10% Pulp & Paper 2,060 2,094-2% Metals 1,644 1,598 +3% Separation % SALES BY REGION (%) Europe North America China Asia (without China) South America Africa, Australia 4 5 GEOGRAPHICAL EXPOSURE Emerging markets: 42% 5,889 MEUR Europe/North America: 58% 8 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

9 FAVORABLE DEVELOPMENT OF SERVICE BUSINESS Increase in all four business areas. SHARE OF SERVICE SALES OF GROUP AND BUSINESS AREA SALES (%) 2016: ANDRITZ GROUP 2017: +200 bps 32% 34% 2016: Hydro 2017: 2016: Metals 2017: +300 bps +200 bps 26% 29% 22% 24% 2016: Pulp & Paper 2017: 2016: Separation 2017: +100 bps +100 bps 41% 42% 46% 47% Note: bps = basis points 9 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

10 GROUP ORDER INTAKE PRACTICALLY UNCHANGED COMPARED TO 2016 Good development in Pulp & Paper, Metals Processing, and Separation negatively offset by weakness in Hydro. ORDER INTAKE (MEUR) +0.2% 5,569 5,580 ORDER INTAKE BY BUSINESS AREA (MEUR) /- Hydro 1,317 1,500-12% Pulp & Paper 2,033 1,920 +6% Metals 1,607 1,552 +4% Separation % ORDER INTAKE BY REGION (%) Europe North America China Asia (without China) South America 7 8 Africa, Australia 3 4 GEOGRAPHICAL EXPOSURE Emerging markets: 39% 5,580 MEUR Europe/North America: 61% 10 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

11 GROUP ORDER BACKLOG DOWN COMPARED TO YEAR-END 2016 Decrease mainly due to Hydro business area. ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) -6% 6,683 6,615 7,389 7,511 7,324 6,789 6, ORDER BACKLOG BY BUSINESS AREA (AS OF END OF PERIOD; IN MEUR) HYDRO AND PULP & PAPER ACCOUNT FOR 73% OF TOTAL BACKLOG /- Hydro 2,922 3,270-11% Hydro: 45% Pulp & Paper: 28% Metals: 21% Separation: 6% Pulp & Paper 1,787 1,803-1% Metals 1,310 1,369-4% Separation % 11 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

12 EARNINGS AND PROFITABILITY AT SOLID LEVELS DESPITE DECREASE IN SALES EBITA (MEUR) +0.4% Despite slight decline in sales, EBITA, at MEUR, reached practically last year s level (2016: MEUR). EBITA includes net positive one-off effect of ~25 MEUR (mainly from sale of the Schuler Technical Center in China, as reported in Q2 2017). EBITA margin increased to 7.5% (2016: 7.3%). Excluding the net positive effect, EBITA margin would have been at 7.1%. Good profitability in Pulp & Paper; satisfactory profitability in Hydro; margin recovery in Separation underway; profitability in Metals down due to cost overruns on some projects and depressed market prices in the Metals Processing sector. EBITA MARGIN (%) 2016: 7.3% 2017: 7.5% (7.1%*) * Excluding extraordinary effect (mainly due to the sale of the Schuler Technical Center in Tianjin). 12 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

13 EARNINGS AND PROFITABILITY BY BUSINESS AREA EBITA (MEUR) and EBITA margin (%). HYDRO PULP & PAPER METALS SEPARATION % % % 7.3% 7.2% 6.0% % % 13 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

14 ORDER INTAKE 2017 BY BUSINESS AREA HYDRO (MEUR) PULP & PAPER (MEUR) METALS (MEUR) SEPARATION (MEUR) 1, % 2,033 1, % 1, % 1,607 1, % / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

15 SALES 2017 BY BUSINESS AREA HYDRO (MEUR) PULP & PAPER (MEUR) METALS (MEUR) SEPARATION (MEUR) -1.6% 2,094 2,060 1, % 1,583 1, % 1, % / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

16 KEY FIGURES 2017 AT A GLANCE UNIT /- Order intake MEUR 5, , % Order backlog (as of end of period) MEUR 6, , % Sales MEUR 5, , % Significant decrease due to substantially lower interest rates in Brazil, as well as interest expense for the Schuldscheindarlehen issued in June Decrease mainly due to the lower gross cash flow as a result of the sale of fixed assets (shown in the cash flow from investing activities) as well as higher income taxes paid. Increase in net working capital mainly due to lack of larger orders as well as increase in service business. EBITDA MEUR % EBITA MEUR % EBIT MEUR % EBT MEUR % Financial result MEUR % Net income (including non-controlling interests) MEUR % Cash flow from operating activities MEUR % Capital expenditure MEUR % Equity ratio % Liquid funds MEUR 1, , % Net liquidity MEUR % Net working capital MEUR % EBITDA margin % EBITA margin % EBIT margin % Employees (as of end of period; without apprentices) - 25,566 25, % 16 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

17 CHAPTER OVERVIEW ANDRITZ GROUP OVERVIEW RESULTS 2017 OUTLOOK AND FINANCIAL TARGETS 17 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

18 OUTLOOK FOR 2018 Unchanged expectations for markets served by ANDRITZ. Hydro Project activity for modernizations and new hydropower stations to remain at subdued level. Some larger, new hydropower projects are currently in the planning phase, especially in Southeast Asia and Africa; selective award of individual large-scale projects is likely. Satisfactory market activity for pumps to continue. Stable +/- Stable + Pulp & Paper Project and investment activity to continue at a high level in 2018, especially for modernization of existing plants. Continued satisfactory investment activity for tissue and packaging, especially in the emerging markets. Metals Project activity in Metal Forming to remain stable/improve slightly compared to Investment activity in Metals Processing to remain at reasonable level. Stable +/- Stable + Separation Reasonable market activity in environment, mining and chemicals. Low investment activity in food to continue. For 2018, ANDRITZ expects stable sales compared to 2017 and solid profitability. 18 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

19 TARGET TO CONTINUE LONG-TERM PROFITABILE GROWTH Goal: further improve profitability with top-line sales growth Sales CAGR*: 12.1% Sales CAGR: 16.4% Sales CAGR: 13.3% Sales CAGR: 5-8% p.a % Average EBITA margin 5.3% 6.0% 6.2% How to achieve long-term profitbale growth: Price discipline Launch of new service and digital products Continued cost optimization Reduction of negative project cost deviations Focus on further acquisitions * Growth rates include organic growth and acquisitions P 19 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

20 UPDATE ON LONG-TERM EBITA MARGIN GOALS PER BUSINESS AREA HYDRO Long-term goal: % CONFIRMED PULP & PAPER Long-term goal: % NEW: >8% METALS SEPARATION Long-term goal: % NEW: % Long-term goal: % CONFIRMED 20 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP

21 DISCLAIMER This presentation contains valuable, proprietary property belonging to ANDRITZ AG or its affiliates ( the ANDRITZ GROUP ), and no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales contracts that may be concluded between the ANDRITZ GROUP companies and purchasers of any equipment and/or systems referenced herein. Please be aware that the ANDRITZ GROUP actively and aggressively enforces its intellectual property rights to the fullest extent of applicable law. Any information contained herein (other than publically available information) shall not be disclosed or reproduced, in whole or in part, electronically or in hard copy, to third parties. No information contained herein shall be used in any way either commercially or for any purpose other than internal viewing, reading, or evaluation of its contents by the recipient, and the ANDRITZ GROUP disclaims all liability arising from the recipient s use or reliance upon such information. Title in and to all intellectual property rights embodied in this presentation and all information contained therein is and shall remain with the ANDRITZ GROUP. None of the information contained herein shall be construed as legal, tax, or investment advice, and private counsel, accountants, or other professional advisers should be consulted and relied upon for any such advice. All copyrightable text and graphics, the selection, arrangement, and presentation of all materials, and the overall design of this presentation are ANDRITZ GROUP All rights reserved. No part of this information or materials may be reproduced, retransmitted, displayed, distributed, or modified without the prior written approval of the owner. All trademarks and other names, logos, and icons identifying the owner s goods and services are proprietary marks belonging to the ANDRITZ GROUP. If the recipient is in doubt whether permission is needed for any type of use of the contents of this presentation, please contact the ANDRITZ GROUP at welcome@andritz.com. 21 / COMPANY PRESENTATION, MARCH 2018 / ANDRITZ GROUP