The ANDRITZ GROUPatl.g.andritz.com/c/com2011/00/02/51/25155/1/1/0/... · 2017. 3. 2. · Group order intake (MEUR) Order intake by business area Q1 2012 vs. Q1 2011 thereof Schuler:

Company presentation May 2013The ANDRITZ GROUP

2

Contents

ANDRITZ GROUP overview

Results Q1 2013

Long-term goals and outlook

Company presentation May 2013

HYDRO35-40%*

Systems and equipment for production of pulp, paper, tissue, and board; energy boilers; produc-tion equipment for bio-fuel/biomass; plants for production of nonwovens and plastic films

3

* Average share of ANDRITZ GROUP’s total order intake

Electromechanical equipment for hydro-power plants (turbines and generators); pumps (e.g. for water transport and irrigation); turbo-generators for thermal power stations

Equipment for solid/liquid separation for municipalities and various industries; systems and equipment for production of animal feed pellets

PULP & PAPER25-30%*

SEPARATION10%*

Presses for metal-forming; systems for production and process-ing of stainless steel, carbon steel, and non-ferrous metal strip; in-dustrial furnaces; resis-tance welding equipment

METALS25%*

Company profileA world market leader in most business areas


4

Sales of the ANDRITZ GROUP (MEUR)

1.2251.481

1.744

2.7103.283

3.6103.198

3.554

4.5965.177

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Strengthening of market positionGrowth through organic expansion and acquisitions


Recent acquisitions by business area

2011 AE&E Austria2011 Iggesund Tools2011 Tristar Industries2011 Asselin-Thibeau2012 AES

METALS1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz2012 Bricmont2012 Soutec2013 Schuler (> 90%)2013 FBB Engineering

SEPARATION1992 TCW Engineering1995 Jesma-Matador1996 Guinard2000 UMT2002 3SYS2004 Bird Machine2004 NETZSCH Filtration2004 Fluid Bed Systems2005 Lenser Filtration2006 CONTEC Decanter2009 Delkor Capital Equipment2009 Frautech2010 KMPT2012 Gouda2013 Shende Machinery (80%)

HYDRO2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (59%)2010 Ritz2011 Hemicycle Controls

PULP & PAPER1990 Sprout-Bauer1992 Durametal1994 Kone Wood1998 Kvaerner Hymac1999 Winberg2000 Ahlstrom Machinery2000 Lamb Baling Line2000 Voith Andritz Tissue LLC (JV)2002 ABB Drying2003 IDEAS Simulation 2003 Acutest Oy2003 Fiedler2004 EMS (JV)2005 Cybermetrics2005 Universal Dynamics Group2006 Küsters2006 Carbona2006 Pilão2007 Bachofen + Meier2007 Sindus2008 Kufferath2009 Rollteck2010 Rieter Perfojet2010 DMT/Biax

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013

5

Strong net cash positionStable development despite acquisitions

77 103 55220

384 366 247409

678

1,1771,401 1,286

885

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013Net liquidity as of end of period (MEUR)

Rollteck

Frautech

Delkor

Ahlströmrem. 50%

Guinardrem. 50%

Fläkt

Selas

Fiedler

IDEAS

Acutest

Thermtecrem. 24.5%

Kaiser

AFSR

Netzsch

Bird

Lenser

Universal

Lynson

VA TECH HYDRO

Kuesters

BMB

Tigép

Sindus

GE Hydro

GEHI

Kufferath

Maerz

AE&E Austria Iggesund

Tools Tristar

Industries Asselin-

Thibeau Hemi-

cycle Controls Hammer-

fest (59%)

DMT/Biax

Rieter Perfojet

Precision Machine

KMPT

Ritz

Hammer-fest (33%)

* Paid out after AGM for the previous year

Dividend* (MEUR):11.5 11.7 12.9 18.0 25.6 38.7 51.1 56.3 51.7 86.9 113.6

Bricmont

Soutec

Schuler(~25%)

AES

Gouda

3.0 124

Schuler(>65%)

Shende Machinery (80%)

FBB


Foto

: BM

W A

G/M

artin

Klin

dtw

orth

6

Contents


Results Q1 2013



Key figures Q1 2013 at a glance

Q1 2013 Q1 2012 +/-

Order intake: solid level ‒ however, declinecompared to high reference figure of last year

1,288 MEUR (thereofSchuler: 96 MEUR)

1,361 MEUR -5%

Order backlog (as of end of period): substantial increase due to Schuler

7,844 MEUR (thereofSchuler: 1,126 MEUR)

7,035 MEUR +12%

Sales: slight decline mainly due to PULP & PAPER (provisions for pulp mill project in South America)

1,164 MEUR (thereofSchuler: 109 MEUR)

1,186 MEUR -2%

EBITA and EBITA margin: strong decrease mainly dueto PULP & PAPER EBITA: EBITA margin:

14 MEUR 1.2%

73 MEUR 6.1%

-80%-

Balance sheet March 31, 2013 Dec. 31, 2012 +/-

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


1,1861,164

Q1 2012 Q1 2013

Group sales (MEUR)

Sales slightly down ‒ strong decline in PULP & PAPER dueto significant sales contribution of large pulp projects in Q1 2012

Q1 2013

PULP & PAPER: -20%

METALS: +126% (+3% ex Schuler)

SEPARATION: -1%

HYDRO: -6%

-2%

Sales by business area Q1 2012 vs. Q1 2011

thereofSchuler: 109

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.


1,3611,288

Q1 2012 Q1 2013

Solid order intake ‒ however, declinecompared to high reference figure of last year

Q1 2012

PULP & PAPER: -20%

METALS: +125%(-25% ex Schuler)SEPARATION: -14%

HYDRO: -4%

Group order intake (MEUR) Order intake by business area Q1 2012 vs. Q1 2011

thereofSchuler: 96

-5%



Sales Q1 2013 Q1 2012

Europe 45% 37%

North America 15% 13%

South America 15% 25%

Asia (without China) 11% 13%

China 10% 9%

Others 4% 3%

Order intake and sales by regionWell-balanced geographical exposure

Order intake Q1 2013 Q1 2012

Europe 42% 47%

North America 13% 13%

South America 7% 15%

Asia (without China) 25% 10%

China 7% 7%

Others 6% 8%

Europe + North America: 60% Emerging markets: 36% Others: 4%

Europe + North America: 55% Emerging markets: 39% Others: 6%


5,291

6,683 7,035 6,615

7,844

2010 2011 March 31,2012

2012 March 31,2013

Group order backlog as of end of period (MEUR)

March 31, 2013

PULP & PAPER: -14%

METALS: +225%(-14% ex Schuler)SEPARATION: -4%

HYDRO: +2%

Order backlog by business area Q1 2013 vs. Q1 2012 (as of end of period)

Order backlog significantly up due to Schuler

+19%

March 31, 2013 vs.March 31, 2012: +12%

thereofSchuler:

1,126



73

14

Q1 2012 Q1 2013

EBITA (MEUR) EBITA margin (%)

EBITA and margin significantly downdue to PULP & PAPER and SEPARATION

-80%

6.1

1.2

Q1 2012 Q1 2013

EBITA, at 14.2 MEUR, decreased by 80% versus Q1 2012 (72.5 MEUR), thus declining significantly more than sales

EBITA in PULP & PAPER down to -23.7 MEUR (30.4 MEUR in Q1 2012)

EBITA in SEPARATION declined to -2.1 MEUR (7.7 MEUR in Q1 2012) due to cost overruns (technical problems related to market launch of some new products in China)

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


13

Significant drop in earningsdue to provisions in PULP & PAPER

EBITA in PULP & PAPER down to -23.7 MEUR in Q1 2013 (Q1 2012: 30.4 MEUR) due to mid-double-digit

provisions related to substantial cost overruns on 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


Key figures Q1 2013 at a glance

Financial result Decrease due to: Interest rate

swap for bond 2012

Generally lower interest rates

Reduced net liquidity


Unit Q1 2013 Q1 2012 +/- 2012

Order intake MEUR 1,288.3 1,361.2 -5.4% 4,924.4

Order backlog (as of end of period) MEUR 7,844.3 7,034.7 +11.5% 6,614.8

Sales MEUR 1,163.8 1,185.7 -1.8% 5,176.9

EBITDA MEUR 32.0 86.5 -63.0% 418.6

EBITA MEUR 14.2 72.5 -80.4% 357.8

EBIT MEUR 3.1 66.7 -95.4% 334.5

EBT MEUR 2.0 70.1 -97.1% 331.6

Financial result MEUR -1.1 3.5 -131.4% -2.8

Net income (including non-controlling interests) MEUR 1.8 50.4 -96.4% 242.2

Cash flow from operating activities MEUR -79.7 37.2 -314.2% 346.5

Capital expenditure MEUR 21.4 19.5 +9.7% 109.1

EBITDA margin % 2.7 7.3 - 8.1

EBITA margin % 1.2 6.1 - 6.9

EBIT margin % 0.3 5.6 - 6.5

Employees (as of end of period; without apprentices) - 23,660 17,063 +38.7% 17,865

14


HYDROSolid business development

Solid market conditions: Solid project activity for modernization/rehabilitation of existing hydropower plants in Europe and North

America; however, lower market volume compared to previous record years Good investment activity for new hydropower plants in emerging markets Satisfactory investment activity for small-scale hydropower plants and pumps

Order intake almost reached very high level of Q1 2012

Slight decline in sales; earnings and margin down


Unit Q1 2013 Q1 2012 +/- 2012Order intake MEUR 574.2 597.5 -3.9% 2,008.4

Order backlog (as of end of period) MEUR 3,983.8 3,907.6 +2.0% 3,842.3

Sales MEUR 381.2 403.4 -5.5% 1,836.8EBITDA MEUR 34.0 37.2 -8.6% 182.4


EBITA MEUR 26.6 30.2 -11.9% 153.2EBITA margin % 7.0 7.5 - 8.3


15

PULP & PAPERHighly disappointing earnings development

Satisfactory, however very competitive market conditions: In spite of unfavorable macroeconomic environment, unchanged solid project activity for pulp mill

modernizations/capacity increases (mainly for small- and medium-sized projects) Favorable investment activity for recovery boilers Very competitive bidding for large projects

Order intake below high reference figure of last year

Substantial decline in sales due to significant sales contribution of two large pulp projects in Q1 2012; earnings strongly down due to provisions related to cost overruns for a pulp mill project in South America


Unit Q1 2013 Q1 2012 +/- 2012Order intake MEUR 423.5 529.4 -20.0% 1,962.4

Order backlog (as of end of period) MEUR 1,978.5 2,290.4 -13.6% 2,018.1

Sales MEUR 452.4 563.5 -19.7% 2,282.2EBITDA MEUR -18.1 35.3 -151.3% 156.2

EBITDA margin % -4.0 6.3 - 6.8

EBITA MEUR -23.7 30.4 -178.0% 134.6EBITA margin % -5.2 5.4 - 5.9


16

METALSFirst-time consolidation of Schuler

Different market conditions in metals-related industries: Unchanged very low project activity in the stainless steel industry due to ongoing overcapacities and

related limited capex Satisfactory project activity in carbon steel and for industrial furnaces Solid investment activity in automotive and automotive supplier industries; however, signs of slowing

demand in the automobile sector

Order intake and sales up due to Schuler; ex Schuler, order intake declined due to weak market environment in the stainless steel industry – however, sales ex Schuler slightly up

Earnings and margin up, mainly due to Schuler


Unit Q1 2013 Q1 2012 +/- 2012Order intake MEUR 144.5 64.3 +124.7% 324.2

Order backlog (as of end of period) MEUR 1,531.2 471.1 +225.0% 451.4

Sales MEUR 202.0 89.4 +126.0% 404.7EBITDA MEUR 15.7 4.7 +234.0% 28.0


EBITA MEUR 13.4 4.2 +219.0% 25.1EBITA margin % 6.6 4.7 - 6.2

Employees (as of end of period; without apprentices) - 6,370 998 +538.3% 1,129

17


* As of December 31, 2012 ** Including Müller Weingarten Group April 1-September 30

18

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*:

Order intake, sales, and EBITDA margin of Schuler Group

Schuler: Global leader in metal forming technology,broadening ANDRITZ’s product range in METALS


Germany 34%Europe (without Germany) 18%Asia 31%America 17%

836

1,006

591

818

1,319 1,301

335

725

966823

650

959

1,226

279

10.3

6.7

-0.4

4.6

8.8 9.69.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

200

400

600

800

1,000

1,200

1,400

2006/07** 2007/08 2008/09 2009/10 2010/11 2011/12 Q1 2012/2013

Order intake (MEUR) Sales (MEUR) EBITDA margin (%)

CAGR order intake: +9% CAGR sales: +11% EBITDA margin: avg. 6.9%

SEPARATIONUnsatisfactory business development

Different market conditions: Solid investment activity for solid/liquid separation equipment in municipal and industrial waste water

treatment sectors and in the food and chemical industries Mining and minerals industries negatively impacted by both volatility of metal prices and economic

slowdown in some regions, leading to several project delays and cancellations Good project activity in the animal, aquatic, and pet food industries, focusing on South America and Asia

Order intake declined; sales slightly down

Earnings and margin significantly declined due to cost overruns (technical problems related to market launch of some new products in China)

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.


Unit Q1 2013 Q1 2012 +/- 2012Order intake MEUR 146.1 170.0 -14.1% 629.4

Order backlog (as of end of period) MEUR 350.8 365.6 -4.0% 303.0

Sales MEUR 128.2 129.4 -0.9% 653.2EBITDA MEUR 0.4 9.3 -95.7% 52.0


EBITA MEUR -2.1 7.7 -127.3% 44.9EBITA margin % -1.6 6.0 - 6.9


19

20

Contents


Results Q1 2013



4.75.2 5.3 5.1

6.3 6.1 6.1 6.4 6.5

5.1

7.2 7.2 6.9

9371,319 1,110 1,225

1,4811,744

2,7103,283 3,610

3,198

3,554

4,5965,177 ~5,000 ~5,000

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 2013E 2014E

EBITA margin (%) Sales (MEUR)

*

0

2010 et seq.: 7.0% over the cycle

* Including restructuring expenses

2005-2009: avg. 6.0% 2000-2004: avg. 5.3%

Target to continue long-term profitable growth 7.0% EBITA margin over the cycle

21 Company presentation May 2013

Outlook 2013

Expectations for the Group Increase in sales, mainly due to consolidation of Schuler

Net income expected to decrease due to earnings decline in PULP & PAPER and scheduled amortization of intangible assets related to acquisition of Schuler

Expectations for the business areasHYDRO Solid project activity for modernizations and new hydropower stations to continue

PULP & PAPER Good project activity for modernizations/capacity increases as well as for power/biomass boilers; solid pipeline of greenfield pulp mills – however, stiff price competition expected for these large-scale projects

METALS Project activity for stainless steel equipment to remain at low level; somewhat improving conditions in carbon steel

Global automotive market expected to cool down

SEPARATION Satisfactory project activity for both municipal and industrial applications; investment activity in feed and biomass expected to remain solid

Macroeconomic environment

No major change expected with regard to macroeconomic development for the remainder of 2013

22 Company presentation May 2013

23

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 wouldbe 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.

Disclaimer


Documents

The ANDRITZ GROUPatl.g.andritz.com/c/com2011/00/02/51/25155/1/1/0/... · 2017. 3. 2. · Group order intake (MEUR) Order intake by business area Q1 2012 vs. Q1 2011 thereof Schuler: