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Transcript of Feed & Biofuel - ANDRITZatl.g.andritz.com/c/com2011/00/01/61/16198/1/1/0/...Wood powder and pellet...
Feed & BiofuelCapital Market Days 2008, Austria
Slide No. 2Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
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.
Disclaimer
Slide No. 3Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Contents
ANDRITZ FEED & BIOFUEL – OVERVIEW
Feed and biofuel market and growth drivers
Strategy and outlook 2009
Slide No. 4Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Andritz Feed & Biofuel at a glance
Conventional feed: 57%Animal feed
Specialized feed: 11%Aquatic feed
Petfood
Biomass: 32%Wood pelleting
Waste pelleting
Ethanol
Applications and sales split 2007
Service andspare parts: 50%
Service and upgrades
Spare and wear parts
Products andsystems: 50%
Key process technology
Complete systems (excl. civil) incl. overall plant design, auto-mation, erection, and start-up
Products and services
Slide No. 5Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Strong growth through organic expansion and acquisitions
69,0
137.8
120.6
93.699.699.2
108.4107.0
67.859.6
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Sales Andritz Feed & Biofuel (MEUR)
1995 Jesma-Matador
2000 UMT
2005 Chemes Strojarne
Acquisitions
Order intake:60 MEUR
Order intake:100 MEUR
Order intake:144 MEUR
1998 2003 2007
Acquisition of UMT Group Organic growth
Biofuel: 7%
Feed: 93%
Biofuel: 15%
Feed: 85%
Biofuel: 36%
Feed: 64%
Development of order mix
Slide No. 6Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
3.0
9.78.8
7.7
2.2
4.83.9
0.9
3.5
-2.3
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Long-term development of profitabilityEBITA margin Andritz Feed & Biofuel (%)
Major restructuringof the business area
Average EBITA margin 2003-2007: 6.6%Average EBITA margin 1998-2002: 1.8%
EBITA Andritz Feed & Biofuel (MEUR)
2.1
13.3
10.6
7.2
2.2
4.84.2
0.9
2.4
-1.4
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
1.8%
6.6%
Slide No. 7Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Global presence
Europe: 47%
North America: 27%
South America: 15%Asia: 7%Others: 4%
Sales 2007: 137.8 MEURSales by region:
Europe: 78%
North America: 13%
South America: 1%Asia: 7%Others: 1%
Employees 2007: 769Employees by region:
Esbjerg, Denmark
Divisional headquarter: R&D, manufacturing and
engineering of machines and systems.
Humenne, Slovakia
Machines and components. Manufacturing source
for Andritz Sprout global distribution.
Geldrop, Netherlands
Pellet mill consumables, global engineering and
manufacturing centre for dies and rolls for all
major pellet mill brands.
Muncy USA
Engineering and manufacturing centre for
industrial products. Sales and service centre for
North America.
Foshan China
Machines and components. Manufacturing source
for Andritz Sprout Asia.
Main locations
Slide No. 8Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Contents
Andritz Feed & Biofuel – overview
FEED AND BIOFUEL MARKET AND GROWTH DRIVERS
Strategy and outlook 2009
Slide No. 9Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Competitors (I)
Andritz: 18%
Bühler: 12%
CPM: 10%
Muyang: 8%
Van Aarsen: 4%
Others: 48%
Total market:
~ 620 mill. tons p.a. feed
~ 500 mill. EUR p.a. technology business
Conventional feed
Source: Andritz estimate
Slide No. 10Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Competitors (II)
Andritz: 9%
Bühler undAeroglide: 20%
Wenger/Extrutech: 18%
Clextral: 8%
Others: 45%
Total market:
~ 55 mill. tons p.a. feed
~ 200 mill. EUR p.a. technology business
Special feed
Source: Andritz estimate
Slide No. 11Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Competitors (III)
Andritz: 52%
Bühler: 14%
CPM: 14%
A. Kahl: 6%
Others: 14%
Total market:
~ 15 mill. tons p.a. pellets
~ 100 mill. EUR p.a. technology business*
Biofuel/wood pelleting
Source: Andritz estimate; * pelleting lines
Slide No. 12Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Animal feed market growth
Customer profile trend:
Commercial feed millers in Western
Europe and USA stagnating/reducing.
Vertically integrated meat producers
growing.
Main growth regions:
Strongly growing feed production in
emerging regions: Asia, Eastern
Europe, Russia, and Central/South
America.
Market growth drivers:
Growing global population.
Increased meat consumption due to
increased buying power in developing
countries.
1998 2003 2008
620
Mill tons/year
Growth ~4-5% p.a.
Source: Andritz estimate
Slide No. 13Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Andritz technology in the animal feed industry
Animal productionHuman food Animal Feed
Feed ingredients Animal feed factory
Andritz market position: top 3
Andritz market share: 18%
Human Food processing
Slide No. 14Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Important animal feed reference: Biodar Croatia
EPC contract: multi purpose animal feed mill; 3 lines, 250,000 tons/year
Slide No. 15Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Aquatic feed market growth
Customer profile trend:
Vertically integrated international/regional fish
farming and fish processing companies growing.
Regional commercial aquatic feed producers
stagnating/reducing.
Main growth regions:
Asia (Tilapia, shrimp, catfish), Central and South
America (Chile: salmon, rest: tilapia), Eastern
Mediterranean (sea bass, sea bream),
Northeastern Atlantic region (salmon).
Market growth drivers:
Growing population in traditional fish consuming
regions.
Increasing fish consumption in emerging regions.
Wild catch limitations: ~100 mill. t/y stagnation.
Enhanced farm processing and transportation
enabling cost efficient global supplies.
0
50
100
150
200
1976 1980 1990 1997 2000 2010 2020 2030
Fishing Fish farming
Mill. tons/year
Source: FAO
1998 2003 2008
Mill. tons/year
45
Growth 2006-2008: ~6-8% p.a.
Source: Andritz estimate
Slide No. 16Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Human foodHuman Food processing Aquatic Feed
Andritz market position: top 3
Andritz market share: 9%
Andritz in the aquatic industry
Feed ingredients Fish feed factory Production equipment
Aquaculture production
Slide No. 17Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Important aquatic feed reference: Emsland Aller Aqua
Greenfield aquatic feed extrusion plant in Germany (completion September 2008), 60,000 tons/year.
Slide No. 18Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Pet-food ingredients
Andritz in the pet-food industry
Pet-food factory
Pet-food productsPet-food distribution
Slide No. 19Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Important pet-food references: Wagg Foods and KormotechWagg Foods, UK: 2x8 tph,
handover 2003 + 2006
Kormotech, Ukraine:
5-7 tph, handover 2005
Slide No. 20Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Mill. tons/year
10
1
Growth 2006-2008: 20%+ p.a.
Biofuel/wood pelleting market growth
Customer profile trend:
Number of large projects by energy companies –
in conjunction with pulp and paper and large
timber industries – rising.
Small regional private investors, mainly in North
America and emerging regions.
Main growth regions:
Northern America, Northern Scandinavia, South
America (since 2006), Russia (since ~2002),
South East Asia (to come).
Market growth drivers:
Kyoto agreement; growing usage of CO2
neutral fuels.
Increasing prices of oil/gas.
Increasing political support for environmental
issues.
1998 2003 2008Source: Andritz estimate
Slide No. 21Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Andritz in the biofuel/wood pelleting industry
Andritz market position: top 1
Andritz market share: 50%
Rawmaterials
Wood powder and pellet factory
Wood powderand wood pellets
Municipal heating and electricity
production
Domestic heasting
Slide No. 22Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Important biofuel/wood pellets reference: Fram
EPC contract: green field wood pelleting in the US; five lines, 130,00 tons/year.
Slide No. 23Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Andritz in the recycling and fuel industry
Rawmaterials
Waste processing station Pelleting plant
Waste pelletsEnergy productionEnergy consumers
Slide No. 24Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Important recycling and fuel reference: AVR
Waste pelleting, Netherlands: 8 tph, handover 2006.
Slide No. 25Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Contents
Andritz Feed & Biofuel – overview
Feed and biofuel market and growth drivers
STRATEGY AND OUTLOOK 2009
Slide No. 26Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Strategic goals
Maintain profitability above 8% (EBITA margin).
Continuation of organic growth at > 5%.
Being the first choice ‛One-Stop-Shop’
technology partner to the feed and biofuel
industries; expand turn key project capacity.
Strengthen global set up in emerging markets to
> provide local service to customers
> improve product cost structure.
Look for acquisition opportunities in existing or
complementary business segments.
Slide No. 27Capital Market Days 2008/Feed & Biofuel_Friedrich Papst
Outlook 2009
Current market development:
So far no substantial slow down in inquiries or order intake.
Animal feed:
Generally good investment activities in emerging regions like South America or
Eastern Europe.
Aquatic feed:
Slow down of Asian aquatic feed growth (regional saturation). Increased
growth in new aquaculture regions (Arab world, northern part of South
America).
Biofuel wood:
Slow down of investments in North America due to lack of finance. Increasing
activity in Northern and Western Europe, where power stations are
increasingly using green fuels.
OUR VISION:World market leader for high-tech production systems
and services for pulp, paper, hydropower, steel,and other specialized industries.