andritz ag company presentation november 2014 · 1,481 1,744 2,710 3,283 3,610 3,198 3,554...
TRANSCRIPT
Company presentation November 2014
ANDRITZ GROUP
2. Results Q3/Q1-Q3 2014
1. ANDRITZ GROUP overview
3. Business areas – market update
4. Long-term goals and outlook
FACTS
>> Globally leading supplier of plants, equipment, and services for hydro-
power stations, the pulp and paper industry, the metalworking and steel
industries, and solid/liquid separation in the municipal and industrial
sectors
>> Among the global market leaders in all of its business areas:
HYDRO, PULP & PAPER, METALS, SEPARATION
>> Headquarters: Graz, Austria
>> Global presence: over 250 production sites and service/sales
companies worldwide * MEUR = million euro
The ANDRITZ-GROUP
Overview
KEY FINANCIAL FIGURES 2013
3
Unit 2013
Order intake MEUR* 5,611.0
Order backlog (as of end of period) MEUR 7,388.5
Sales MEUR 5,710.8
EBITA MEUR 164.1
Net income
(including non-controlling interests) MEUR 53.2
EBITA margin % 2.9
Employees
(as of end of period; without apprentices) - 23,713
Company presentation November 2014
4
HYDRO
>> Electromechanical
equipment for hydropower
plants: turbines, generators
>> Pumps
>> Turbogenerators
Order intake1): 1,865.4 MEUR
Sales: 1,804.8 MEUR
PULP & PAPER
>> Equipment for production of
all types of pulp, paper,
tissue, and board
>> Energy boilers
Order intake: 1,907.7 MEUR
Sales: 2,005.3 MEUR
METALS
>> Presses for metalforming
>> Systems for production of
stainless steel, carbon
steel, and non-ferrous
metal strip
>> Industrial furnace plants
Order intake: 1,233.8 MEUR
Sales: 1,311.0 MEUR
SEPARATION
>> Equipment for solid/liquid
separation for municipalities
and various industries
>> Systems and equipment for
production of animal feed
and biomass pellets
Order intake: 604.1 MEUR
Sales: 589.7 MEUR
Order Intake:
Sales:
EBITA margin:
Company profile
A world market leader in most business areas
1) Key financial figures 2013
* Average share of ANDRITZ GROUP’s total order intake
30-35%* 25%* 10%* 30-35%*
Company presentation November 2014
1,481 1,744
2,710
3,283 3,610
3,198 3,554
4,596
5,177
5,711
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Sales of the ANDRITZ GROUP (MEUR)
Recent acquisitions by business area
2011 AE&E Austria 2011 Iggesund Tools 2011 Tristar Industries 2011 Asselin-Thibeau 2012 AES 2013 MeWa METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div. 2004 Kaiser 2005 Lynson 2008 Maerz 2012 Bricmont 2012 Soutec 2013 Schuler (> 95%) 2013 FBB Engineering SEPARATION 1992 TCW Engineering 1995 Jesma-Matador 1996 Guinard 2000 UMT 2002 3SYS 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
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
Compound Annual Growth Rate (CAGR) of Group sales 2004-2013: +16% p. a. (thereof approx. half organic growth)
Strengthening of market position
Growth through organic expansion and acquisitions
5 Company presentation November 2014
2. Results Q3/Q1-Q3 2014
1. ANDRITZ GROUP overview
3. Business areas – market update
4. Long-term goals and outlook
451 427
525 501
414 389
145 147
Q3 2013 Q3 2014
Q1: 1,164
Q1: 1,219
Q2: 1,446
Q2: 1,440
Q3: 1,535
Q3: 1,464
Q1-Q3 2013 Q1-Q3 2014
SALES (MEUR)
* Schuler portion
The Schuler Group was consolidated into the consolidated
financial statements of the ANDRITZ GROUP as of March 1, 2013
109*
265*
258*
282*
4,145 4,123
Q1: +5%
(ex Schuler: -9%)
SALES Q3 2014
by business area
(MEUR)
-1%
(-4% ex
Schuler)
Q2: +/-0%
(ex Schuler: -2%)
Q1-Q3 2014 vs. Q1-Q3 2013:
█ SEPARATION: -3%
█ METALS: +16%
(ex Schuler: +8%)
█ PULP & PAPER: -6%
█ HYDRO: -5%
Group sales: Q1-Q3 2014 slightly below level of last year;
project related sales decline in most business areas in Q3 2014
334* 296*
Q3: -5%
(ex Schuler: -3%)
1,535 1,464
-5%
-5%
-5%
-6%
(ex Schuler: +17%)
+1%
7 Company presentation November 2014
367 351
602 573
424 530
132 138
Q3 2013 Q3 2014
Q1: 1,288
Q1: 1,742
Q2: 1,238
Q2: 1,238
Q3: 1,525
Q3: 1,592
Q1-Q3 2013 Q1-Q3 2014
Group order intake: Q1-Q3 2014 strongly up due to P&P and
METALS; Q3 2014 slightly above good level of last year
ORDER INTAKE (MEUR)
* Schuler portion
The Schuler Group was consolidated into the consolidated
financial statements of the ANDRITZ GROUP as of March 1, 2013
96*
235*
320*
235*
4,051
4,572
Q1: +35%
(ex Schuler: +19%)
ORDER INTAKE
Q3 2014 by
business area
(MEUR)
+13%
(+8% ex
Schuler)
Q3: +4%
(ex Schuler: +3%) Q1-Q3 2014 vs. Q1-Q3 2013:
█ SEPARATION: -1%
█ METALS: +39%
(ex Schuler: +37%)
█ PULP & PAPER: +15%
█ HYDRO: -5%
362*
327*
Q2: +/-0%
(ex Schuler: +/-0%)
1,525 1,592
+4%
-4%
-5%
+25%
(ex Schuler: +74%)
+4%
8 Company presentation November 2014
57% 43%
Order intake and sales by region
Well-balanced geographical exposure
ORDER INTAKE Q1-Q3 2014 by region (Q1-Q3 2013)
4,572 MEUR
E m e r g i n g m a r k e t s a n d O t h e r s E u r o p e a n d N o r t h A m e r i c a
South America: 15% (12%) >>
China: 14% (12%) >>
Asia (without China): 9% (14%) >>
Others*: 5% (4%) >>
<< Europe: 38% (42%)
<< North America: 19% (16%)
58% 42%
SALES Q1-Q3 2014 by region (Q1-Q3 2013)
4,123 MEUR
South America: 15% (14%) >>
China: 14% (12%) >>
Asia (without China): 10% (11%) >>
Others*: 3% (4%) >>
<< Europe: 41% (43%)
<< North America: 17% (16%)
E m e r g i n g m a r k e t s a n d O t h e r s E u r o p e a n d N o r t h A m e r i c a
9 Company presentation November 2014
* Africa and Australia
3,638 3,575
1,956 2,102
1,500 1,631
371 394
Sept. 30 2013 Sept. 30 20142011 2012 Sept. 302013
2013 Sept. 302014
ORDER BACKLOG
Sept. 30, 2014
by business area
(MEUR)
ORDER BACKLOG* (MEUR)
** Schuler portion
* As of end of period. The Schuler Group was consolidated into the consoli-
dated financial statements of the ANDRITZ GROUP as of March 1, 2013
1,088**
Order backlog
Solid workload in all business areas
+4%
1,040** 1,121**
+3%
(+3% ex
Schuler)
Q1-Q3 2014 vs. Q1-Q3 2013:
█ SEPARATION
█ METALS
█ PULP & PAPER
█ HYDRO
6,683 6,615
7,465 7,389 7,702 7,465 7,702
+3%
+9%
(ex Schuler: +24%)
+7%
-2%
+6%
10 Company presentation November 2014
Q1: 14.2
Q1: 48.6
Q2: 82.7
Q2: 84.8
Q3: 70.1
Q3: 101.0
Q1-Q3 2013 Q1-Q3 2014
Satisfactory development of EBITA margin
SEPARATION slightly improved
5.7%
GROUP EBITA MARGIN
4.6%
Q3 2013
6.9% 4.0%
Q1-Q3
2013
Q3 2014 Q1-Q3
2014
EBITA (MEUR)
Q3 2014
>> EBITA, at 101.0 MEUR, increased by 44% compared to Q3 2013 (70.1 MEUR)
due to PULP & PAPER and SEPARATION recovering strongly from last year’s
very low levels
>> EBITA margin, at 6.9%, (Q3 2013: 4.6%): satisfactory levels at METALS and
HYDRO; PULP & PAPER still impacted by some lower margin orders;
SEPARATION improvement underway
Q1-Q3 2014
EBITA and margin considerably higher compared to low level of last yearʼs reference
period, which was negatively impacted by cost overruns in PULP & PAPER and
unsatisfactory earnings in SEPARATION
167.0
234.4 +40%
Q3:
+44%
Q2:
+3%
Q1:
+242%
11 Company presentation November 2014
The Schuler Group was consolidated into
the consolidated financial statements of
the ANDRITZ GROUP as of March 1, 2013
Unit Q1-Q3
2014
Q1-Q3
2013 +/- Q3 2014 Q3 2013 +/- 2013
Order intake MEUR 4,571.6 4,051.3 +12.8% 1,591.5 1,525.3 +4.3% 5,611.0
Order backlog (as of end of period) MEUR 7,702.2 7,464.5 +3.2% 7,702.2 7,464.5 +3.2% 7,388.5
Sales MEUR 4,122.9 4,144.6 -0.5% 1,463.5 1,534.5 -4.6% 5,710.8
EBITDA MEUR 298.9 229.3 +30.4% 123.2 93.3 +32.0% 255.2
EBITA MEUR 234.4 167.0 +40.4% 101.0 70.1 +44.1% 164.1
EBIT MEUR 176.0 116.2 +51.5% 81.6 50.3 +62.2% 89.8
EBT MEUR 174.3 110.8 +57.3% 81.6 48.0 +70.0% 80.3
Financial result MEUR -1.7 -5.4 +68.5% 0.0 -2.3 +100.0% -9.5
Net income (including non-controlling interests) MEUR 122.0 77.6 +57.2% 57.1 32.8 +74.1% 53.2
Cash flow from operating activities MEUR 225.6 -81.1 +378.2% 176.6 5.4 +3,170.4% 93.7
Capital expenditure MEUR 61.9 65.5 -5.5% 27.4 21.1 +29.9% 111.4
Equity ratio % 16.9 18.0 - 16.9 18.0 - 16.7
Liquidity MEUR 1,666.6 1,410.9 +18.1% 1,666.6 1,410.9 +18.1% 1,517.0
Net liquidity (after deduction of all financial liabilities) MEUR 1,013.8 782.3 +29.6% 1,013.8 782.3 +29.6% 893.1
Net working capital MEUR -607.0 -435.6 -39.3% -607.0 -435.6 -39.3% -539.4
EBITDA margin % 7.2 5.5 - 8.4 6.1 - 4.5
EBITA margin % 5.7 4.0 - 6.9 4.6 - 2.9
EBIT margin % 4.3 2.8 - 5.6 3.3 - 1.6
Employees (as of end of period; without apprentices) - 24,468 23,939 +2.2% 24,468 23,939 +2.2% 23,713
Key figures Q3/Q1-Q3 2014 at a glance
Strong cash flow generation and low net working capital
The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013
12 Company presentation November 2014
HYDRO
Reasonable project activity…
MODERNIZATIONS/REHABILITATIONS
Reasonable – although clearly below
peak years – project activity in Europe
and North America
NEW HYDROPOWER PLANTS
Some projects in emerging markets in
implementation or planning phase
(particularly in South America and Africa)
COMPETITION
No major changes experienced during
reporting period
PUMPS
Solid project and investment activity
ANDRITZ HYDRO Hammerfest has received an order from
MeyGen Ltd. to supply three 1.5-megawatt tidal current turbines.
This is the first order worldwide for the commercial use of such
turbines.
13 Company presentation November 2014
HYDRO Unit Q1-Q3
2014
Q1-Q3
2013 +/- Q3 2014 Q3 2013 +/- 2013
Order intake MEUR 1,166.0 1,221.6 -4.6% 351.4 367.3 -4.3% 1,865.4
Order backlog (as of end of period) MEUR 3,575.5 3,637.4 -1.7% 3,575.5 3,637.4 -1.7% 3,722.4
Sales MEUR 1,232.2 1,301.5 -5.3% 426.8 450.9 -5.3% 1,804.8
EBITDA MEUR 114.5 121.2 -5.5% 42.8 44.9 -4.7% 176.8
EBITDA margin % 9.3 9.3 - 10.0 10.0 - 9.8
EBITA MEUR 91.7 99.3 -7.7% 34.9 38.0 -8.2% 146.9
EBITA margin % 7.4 7.6 - 8.2 8.4 - 8.1
Employees (as of end of period; without apprentices) - 8,080 7,712 +4.8% 8,080 7,712 +4.8% 7,445
… and stable business development
1 2 ORDER INTAKE in Q3 2014 slightly below
the level of Q3 2013 POC-related decline in SALES
3
1
3 EARNINGS and MARGINS at
unchanged solid levels
2
14 Company presentation November 2014
PULP & PAPER
Good project and investment activity …
MODERNIZATIONS/GREENFIELD
Good project and investment activity for modernizations and refurbishments; next
green-/brownfield pulp mills in South America and Europe expected during H1 2015
BIOMASS/RECOVERY BOILERS
Good investment activity
COMPETITION
Unchanged challenging price competition
TISSUE
Solid demand,
especially in China
Photo: Montes del Plata
Pulp mill Montes del Plata, Uruguay
15 Company presentation November 2014
PULP & PAPER Unit Q1-Q3
2014
Q1-Q3
2013 +/- Q3 2014 Q3 2013 +/- 2013
Order intake MEUR 1,629.6 1,417.3 +15.0% 572.4 602.3 -5.0% 1,907.7
Order backlog (as of end of period) MEUR 2,101.7 1,956.0 +7.4% 2,101.7 1,956.0 +7.4% 1,885.6
Sales MEUR 1,369.9 1,456.7 -6.0% 500.6 524.5 -4.6% 2,005.3
EBITDA MEUR 85.5 8.2 +942.7% 35.7 -1.8 +2,083.3% -11.5
EBITDA margin % 6.2 0.6 - 7.1 -0.3 - -0.6
EBITA MEUR 66.9 -9.2 +827.2% 29.1 -7.7 +477.9% -35.7
EBITA margin % 4.9 -0.6 - 5.8 -1.5 - -1.8
Employees (as of end of period; without apprentices) - 7,340 7,075 +3.7% 7,340 7,075 +3.7% 7,136
… and earnings recovery from low levels
3
1
1 2 ORDER INTAKE in Q3 2014 almost
reached very high level of Q3 2013
Decline in SALES due to strong sales
contribution of a pulp mill project in
Q3 2013
3 Recovery of EARNINGS and MARGIN in Q3 2014 compared to very
low level of last year; good development of profitability in service,
capital still impacted by execution of some lower margin orders
2
16 Company presentation November 2014
METALS
Overall good project activity …
METALFORMING
Good project activity,
especially in China;
satisfactory level in
Europe
STAINLESS STEEL
Unchanged low
project activity,
however some
selective investments
in emerging markets
COMPETITION
No major changes
experienced during
reporting period
ALUMINUM
Very good project
activity
Major order from FAW Volkswagen in China for three servo press lines and three
tryout presses
17 Company presentation November 2014
METALS Unit Q1-Q3
2014
Q1-Q3
2013 +/- Q3 2014 Q3 2013 +/- 2013
Order intake MEUR 1,328.1 958.3 +38.6% 530.2 423.8 +25.1% 1,233.8
Order backlog (as of end of period) MEUR 1,631.4 1,500.3 +8.7% 1,631.4 1,500.3 +8.7% 1,427.6
Sales MEUR 1,111.8 962.9 +15.5% 389.5 413.7 -5.8% 1,311.0
EBITDA MEUR 87.0 90.2 -3.5% 36.8 45.1 -18.4% 76.6
EBITDA margin % 7.8 9.4 - 9.4 10.9 - 5.8
EBITA MEUR 69.8 74.7 -6.6% 31.1 37.4 -16.8% 53.5
EBITA margin % 6.3 7.8 - 8.0 9.0 - 4.1
Employees (as of end of period; without apprentices) - 6,202 6,309 -1.7% 6,202 6,309 -1.7% 6,300
… and solid business development
1
2 ORDER INTAKE in Q3 2014 favorably up
(+25% vs. Q3 2013); ex Schuler, substantial
increase by 74% mainly due to the receipt of
some selective larger orders for aluminum
strip processing equipment
Decline in SALES in Q3 2014
3 Good MARGIN, although below very high
reference level of last year which was
impacted by positive one-offs
3
1
2
The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013 and is allocated to the METALS
business area
18 Company presentation November 2014
ENVIRONMENT
Solid investment activity by municipalities
FOOD
Satisfactory project activity
SEPARATION
Mixed development of project and investment activity …
MINING AND MINERALS
Unchanged low project activity
FEED AND BIOMASS PELLETING
Good project activity
CHEMICALS
Slight decrease in project activity
compared to the previous quarter
New low-profile belt press: significant reduction in investment costs combined
with further decrease in operating costs
19 Company presentation November 2014
SEPARATION Unit Q1-Q3
2014
Q1-Q3
2013 +/- Q3 2014 Q3 2013 +/- 2013
Order intake MEUR 447.9 454.1 -1.4% 137.5 131.9 +4.2% 604.1
Order backlog (as of end of period) MEUR 393.6 370.8 +6.1% 393.6 370.8 +6.1% 352.9
Sales MEUR 409.0 423.5 -3.4% 146.6 145.4 +0.8% 589.7
EBITDA MEUR 11.9 9.7 +22.7% 7.9 5.0 +58.0% 13.3
EBITDA margin % 2.9 2.3 - 5.4 3.4 - 2.3
EBITA MEUR 6.0 2.2 +172.7% 5.9 2.4 +145.8% -0.6
EBITA margin % 1.5 0.5 - 4.0 1.7 - -0.1
Employees (as of end of period; without apprentices) - 2,846 2,843 +0.1% 2,846 2,843 +0.1% 2,832
… and earnings and margin recovery
3
1
2
1
3
ORDER INTAKE in Q3 2014 slightly
up compared to Q3 2013
Jump in EARNINGS and MARGIN in Q3 2014
compared to the very low level of Q3 2013
SALES in Q3 2014 at level of last
year’s reference period 2
20 Company presentation November 2014
2. Results Q3/Q1-Q3 2014
1. ANDRITZ GROUP overview
3. Business areas – market update
4. Long-term goals and outlook
22
HYDRO
Challenging, but solid market environment
Long-term
average growth
potential:
3-4% p.a.
Large-scale plants Small-scale plants Pumps
Market
update
>> Solid demand for modernizations
>> Pumped storage projects on hold due to low
electricity prices
>> Greenfield hydropower projects in emerging
markets (Africa, South America)
Good activity to continue, especially in
emerging markets (high energy demand,
low capex needs)
Demand for special pumps
to remain high (irrigation,
water transport, nuclear,
etc.)
Competition Increasing price competition on selective projects. Main competitors: GE/Alstom, Voith
Outlook Stable +
Company presentation November 2014
Units over 30 years old
(in % of installed capacity in operation)
74
29
80
29
38
71
23
Favorable modernization potential: more than half of
hydropower capacity installed worldwide over 30 years old
Installed hydropower capacity 2013
by region in %
█ Europe
█ China
█ North/Central America
█ Asia (without China)
█ South America
█ Africa
26
26 19
14
12 3
1,076 GW
Europe
China
North/Central America
Asia
South America
Africa
Sources: GlobalData, Hydropower &
Dams World Atlas, 2013
Average
55%
Company presentation November 2014
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
CAGR 2013-2025E
■ China +6%
■ Africa +5%
■ South America +4%
■ Asia (without China) +3%
■ North/Central America +2%
■ Europe +1%
Cumulative installed hydropower capacity in GW (I)
Average annual growth of 3.5% expected for 2013-2025
24
Source: GlobalData
729 738 752 773 797 822 845 877 908 939 976
1,012 1,043
1,076 1,107 1,149
1,196 1,243
1,291 1,335
1,384 1,431
1,479 1,528
1,579 1,630
+3.0%
Company presentation November 2014
25
PULP & PAPER
Good project activity, but fierce competition
Pulp Paper/packaging Nonwoven/plastic film Service
Market
update
>> Investments in greenfield pulp mills to
continue
>> Modernization projects to increase
capacity, efficiency, and profitability of
existing mills
>> Green energy investments
>> Some selective biomass pelleting projects
>> Stable demand for tissue and
containerboard machines,
predominantly in emerging
markets
>> More stringent quality
requirements for food
packaging
>> Stable and good
project activity
for nonwoven
>> Good potential in
certain niches
>> Plastic film:
sharp market
decline due to
overcapacity
Good potential
to grow organi-
cally and by
acquisitions
Competition Unchanged stiff price competition. Main pulp competitor: Valmet
Outlook
Long-term
average growth
potential:
2-3% p.a.
Stable + Stable +/- Stable +/-
Company presentation November 2014
Average technical age
of BHKP mills by region
25
34
16
19
11
24
26
Average technical age structure of pulp mills by region
Company presentation November 2014
Source: RISI, Pöyry (2014-10-01)
Europe
North America
Asia (excl. China)
LatAm
Africa
Average technical age
of BSKP mills by region
Europe
25
32
17
7
30
Europe
North America
Asia (excl. China)
LatAm
China
█ Europe
█ China
█ North America
█ Asia (excl. China)
█ Latin America
█ Africa
24%
23%
22%
21%
9% 1%
474 million tons per year
Pulp capacity
by region 2014 in %
China
27 Company presentation November 2014
Source: Pöyry (2014-10-30)
Despite new capacities built, CAGR of total capacity
was only 0.9% since 2000
Development of net global chemical pulp production capacity (market pulp + integrated pulp)
-285 1,282 954 2,532 1,158 1,318 3,445 291 42 1,630 1,750 2,394 -1,000 2,712
132,510 133,792 134,746 137,278 138,436 139,754 143,199 143,490 143,532 145,196 146,826 149,220 148,220 150,932
Total capacity 2014:
150,932 ktons/a
Total capacity 2000:
132,795 ktons/a
-8000
-6000
-4000
-2000
0
2000
4000
6000
8000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
ktons/a
Chemical pulp
production capacity:
Total ktons
+/- ktons
28
Low cash costs of hardwood pulp production
especially in South America…
Company presentation November 2014
308 268 283
298
380
297
424 404
485
560
Russia Chile Brazil Uruguay USA Indonesia Sweden Finland China Japan
Hardwood (BHKP) market pulp – cash cost comparison by country (in USD per ton)
343 287
391
455 501 486 472
552
Russia Chile USA Canada Sweden China Finland Japan
Softwood (BSKP) market pulp – cash cost comparison by country (in USD per ton)
Source: RISI
Mozambique: Chile:
Owner – project Capacity/a.* Planned start-up
Arauco – Bio-Bio 1.6 2018 et seq.
29
…lead to good project activity
* Annual capacity in million tons; source: Pöyry. Capacity/year refers to added gross capacity (i.e. relevant as accessible market) without taking possible shut-downs of existing capacities into account
Brazil:
Owner – project Capacity/a.* Planned start-up
Eldorado – Três Lagoas 2.3 2017 et seq.
Fibria – Três Lagoas 1.8 2017 et seq.
Veracel – Eunápolis 2.0 2018 et seq.
Braxel – Peixes 1.5 2018 et seq.
Eco Brasil Florestas – Tocantins 1.5 2018 et seq.
Mato Grosso do Sul – Ribas do Rio Pardo 1.8 2018 et seq.
Suzano – Imperatriz 1.3 2018 et seq.
Fibria – Aracruz 1.7 2018 et seq.
Owner Capacity/a.* Planned start-up
Portucel 1.5 2020 et seq.
Finland:
Owner – project Capacity/a.* Planned start-up
Metsä Group – Äänekoski 1.3 2017 et seq.
China:
Owner – project Capacity/a* Planned start-up
Guangxi Jingui – Qinzhou City 1.2 2018 et seq.
Company presentation November 2014
30
METALS: good project activity in metalforming, aluminum,
and furnaces – unchanged low activity in carbon/stainless steel
Long-term
average
growth
potential
2-3% p.a.
Metalforming Stainless steel Furnaces
Market
update
>> Good demand from automobile manufacturers
continuing, especially in Asia and Americas
>> Stable demand from other industries
Investment activity to remain at low
level, some investment projects
planned in Q4 2014/H1 2015
Good demand
to continue
Competition
Stable competition at challenging level
Main competitors from Japan and China Main competitors: Danieli, SMS, Mitsubishi/VAI
Outlook
Long-term
average growth
potential:
4-5% p.a.
Stable + Stable - Stable +
Company presentation November 2014
2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Long-term growth of automobile production
to support growth of Schuler
31
Source: IHS Global Insight
77 82 83 87 92 97 100 103
Global production volume in million car units (CAGR global 2013-2018E: +4%)
Share in production volume 2013
CAGR 2013-2018E
█ Europe 22% +4%
█ Greater China 25% +7%
█ Japan/Korea 16% -1%
█ Middle East/Africa 2% +6%
█ North America 20% +2%
█ South America 5% +6%
█ South Asia 10% +8%
Company presentation November 2014
32
SEPARATION
Varied project activity in different markets
Municipal Industrial Feed Biomass pelleting
Market
update
Investment activity at reasonable
levels, mainly in developed markets
>> Reasonable demand in
food processing
>> Low project activity in
mining/minerals and
chemicals
Continuing at solid level Stable demand to
continue
Competition Very fragmented market with global and regional competitors
Outlook
Long-term
average growth
potential:
2-3% p.a.
Stable - Stable +/- Stable + Stable +
Company presentation November 2014
2. Results Q3/Q1-Q3 2014
1. ANDRITZ GROUP overview
4. Long-term goals and outlook
3. Business areas – market update
4.7
5.2 5.3 5.1
6.3 6.1 6.1
6.4 6.5
5.1*
7.2 7.2 6.9
2.9**
937
1,319 1,110 1,225
1,481 1,744
2,710
3,283 3,610
3,198
3,554
4,596
5,177
5,711**
0
1,000
2,000
3,000
4,000
5,000
6,000
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E
EBITA margin (%) Sales (MEUR)
* Including restructuring expenses ** Including Schuler as of March 1, 2013; no pro forma figures are available for the reference periods of previous years
Target to continue long-term profitable growth
Goal: maintain 7% and improve to 8% with top-line sales growth
34
%
MEUR
Long term:
maintain 7%
and improve to
8% with top-line
sales growth
Average
2005-2009:
6.0% Average
2000-2004:
5.3%
Company presentation November 2014
Outlook for remainder of 2014
Investment activity to remain at current levels
HYDRO
Good project activity for modernizations
and new hydropower stations to
continue; good market activity for
pumps to continue
METALS
Global metalforming market to stay
at good level; steel at unchanged
subdued level; good market activity
in aluminum to continue
SEPARATION
Low project activity in mining to remain;
solid project activity in chemicals; good
investment activity in environment, food,
and feed/biomass pelleting
stable +
ANDRITZ GROUP
>> Slight increase in sales due to Schuler consolidation effect (contribution of additional two months in 2014)
>> Significant improvement of net income targeted
stable +
stable + stable +/-
Company presentation November 2014 35
PULP & PAPER
Solid project activity for modernizations/
capacity increases and power/biomass boilers; good
pipeline for green-/brownfield pulp mill projects
order awards expected during H1 2015
Financials
Appendix:
3,349
4,132
5,707
4,924 5,611
2009 2010 2011 2012 2013
5.1
7.2 7.2 6.9
2.9
2009 2010 2011 2012 2013
ANDRITZ GROUP
Sales, order intake, EBITA, and EBITA margin 2009-2013
3,198 3,554
4,596 5,177
5,711
2009 2010 2011 2012 2013
Sales (in MEUR): CAGR +16%
37
Order intake (in MEUR): CAGR +14%
EBITA (in MEUR)
EBITA margin (in %)
Average
4,447 MEUR
Average
4,745 MEUR
Average
255 MEUR
Average
5.9%
164.1
257.6
331.5 357.8
164.1
2009 2010 2011 2012 2013
Company presentation November 2014
HYDRO
Sales, order intake, EBITA, and EBITA margin 2009-2013
1,378 1,579
1,773 1,837 1,805
2009 2010 2011 2012 2013
Sales (in MEUR): CAGR +7%
1,694 1,870
2,096 2,008 1,865
2009 2010 2011 2012 2013
38
100.5 118.0
147.7 153.2 146.9
2009 2010 2011 2012 2013
Order intake (in MEUR): CAGR +2%
EBITA (in MEUR)
EBITA margin (in %)
Average
1,674 MEUR
Average
1,907 MEUR
Average
133 MEUR
Average
7.9%
7.3 7.5 8.3 8.3 8.1
2009 2010 2011 2012 2013
Company presentation November 2014
1.9
7.3 6.4
5.9
-1.8
2009 2010 2011 2012 2013
PULP & PAPER
Sales, order intake, EBITA, and EBITA margin 2009-2013
926 1,130
1,885
2,282 2,005
2009 2010 2011 2012 2013
Sales (in MEUR): CAGR +21%
940
1,416
2,694
1,962 1,908
2009 2010 2011 2012 2013
39
17.2
82.2
120.4 134.6
-35.7
2009 2010 2011 2012 2013
Order intake (in MEUR): CAGR +19%
EBITA (in MEUR)
EBITA margin (in %)
2013
2013
Average
1,646 MEUR
Average
1,784 MEUR
Average
64 MEUR
Average
3.9%
Company presentation November 2014
4.3
5.4 5.2
6.2
4.1*
2009 2010 2011 2012 2013
METALS
Sales, order intake, EBITA, and EBITA margin 2009-2013
473 340 373 405
1,311
2009 2010 2011 2012 2013
Sales (in MEUR): CAGR +29%*
296 303 319 324
1,234
2009 2010 2011 2012 2013
40
20.5 18.4 19.4 25.1
53.5
2009 2010 2011 2012 2013
Order intake (in MEUR): CAGR +43%*
EBITA (in MEUR)
EBITA margin (in %)
* -8% ex Schuler
* +5% ex Schuler
Average
ex Schuler:
387 MEUR
Schule
r: 9
67
S
chule
r: 8
68
Schule
r: 4
0.0
* Schuler: 4.1% (8.4% before restructuring expenses)
Average
ex Schuler:
321 MEUR
Average
ex Schuler:
19.4 MEUR
Average
ex Schuler:
5.0%
Company presentation November 2014
Average
5.7%
6.2
7.7 7.8 6.9
-0.1
2009 2010 2011 2012 2013
SEPARATION
Sales, order intake, EBITA, and EBITA margin 2009-2013
421 505
566 653
590
2009 2010 2011 2012 2013
Sales (in MEUR): CAGR +9%
419
544 598 629 604
2009 2010 2011 2012 2013
41
25.9
39.0 44.0 44.9
-0.6
2009 2010 2011 2012 2013
Order intake (in MEUR): CAGR +10%
EBITA (in MEUR)
EBITA margin (in %)
Average
547 MEUR
Average
559 MEUR
Average
31 MEUR
Company presentation November 2014