andritz pulp & paper, capital systems · 8 andritz pulp & paper, capital systems ......

Capital Market Day 2010, AustriaANDRITZ PULP & PAPER, Capital Systems

2 ANDRITZ PULP & PAPER, Capital Systems – Karl Hornhofer – Capital Market Day 2010, Austria

Business profile and historic development of the business area

Acquisitions and growth strategy

Market

Contents

▲ Metsä-Botnia’s Fray Bentos pulp mill, Uruguay


Pulp mills:Complete lines for chemical, mechanical, and recycled fiber production.

Paper mills: Complete lines for tissue and board. Stock preparation and approach flow.

Power generating industry:Bubbling fluidized bed boilers for bio-fuels.

Special packaging industries (e.g. food packaging):Complete lines for biaxially oriented plastic films.

Nonwoven (e.g. hygiene industry):Components for nonwoven lines.

Business profileCapital Systems


736643

843 857923

749

1,034

1,4061,432

1,017

1,219

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 H12010

Order intake 2000-H1 2010 (MEUR) Order intake 2009 by region (%)

Long-term order intake development of thePULP & PAPER business area


Long-term sales and earnings development of thePULP & PAPER business area

544

883

672

810885 903

479

1,327

1,462

1,304

1,033

6.1

1.9

5.0

6.05.86.2

7.3

6.15.8

6.1

5.1

0

200

400

600

800

1,000

1,200

1,400

1,600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 H1 20100.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Sales (MEUR) EBITA margin (%)

CAGR Sales 2000-2009: 6%

*

* including restructuring expenses


Development of the business area in face of the crisis

417

294

244

78

165138

302319

340

409

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Order intake PULP & PAPER business area (MEUR)

Stabilization at good levels as from Q3 2009 on


Market leader for market pulp.Important references: UPM, Uruguay; Horizonte, Brazil; Hunan, China.

Market entrance in power generation of biomass.Important references: Ence Navia, Spain; Portucel, Portugal; Fortum Pärnu, Estonia; E.ON Örebrö, Sweden.

Development and successful marketing of High Energy Recovery Boilers (HERB): HERB represents best available technology with highest power/electricity production.Important references: SCA, Sweden; CMPC, Chile; Holmen AB, Sweden.

Development of future technologies for power and heat production: biofuels from biomass, bioethanol, biodiesel, torrefaction, gasification technologies.

Entrance into promising and strong growing niche markets by acquisitions: e.g. nonwoven and biaxiallyoriented polypropylene business.

Successful restructuring of the business areas during economic crisis improved cost and competitive position.

Major strategic achievements during last three years


Important referencesTrês Lagoas, Brazil: world’s largest single-line pulp mill

Customer:Fibria (former AracruzCelulose and VotorantimCelulose e Papel).

Project:Greenfield bleached market pulp line with a capacity of1.3 million t/a.

Scope of supply:Complete fiberline from digester to finished bales; complete white liquor production plant.

Start-up:March 2009 (order received in May 2007).


Important referencesHunan, China: greenfield pulp mill

Customer:Hunan Tiger Forest & Paper Group.

Project:400,000 t/a bleached softwood kraft pulpmill.

Scope of supply:All major production systems.

Start-up:August 2008


CMPC, Chile:Recovery boiler and evaporation plant.

SCA Graphic Sundsvall, Sweden:White liquor plant.

SCA Packaging Obola, Sweden:White liquor plant.

Nippon Paper, Japan:Pulp machine and dryer.

Holmen AB, Sweden:Revovery boiler.

CMPC Celulosa, Chile:Fiberline upgrade.

E.ON Örebro, Sweden:Power boiler.

Eight tissue machines, China:> Four for Hengan Holding Co. Ltd.> Two for confidential customers.> Two for Hwagain Paper.

Major orders 2009/2010

High Energy Recovery Boiler

(HERB) for CMPC’sLaja mill, Chile ►


Research & developmentMain focus on green energy

Pulp mills as green energy producers (HERB: High Energy Recovery Boiler).

Power generation from biomass with highest efficiency (IGCC: Integrated Gasification Combined Cycle; biomass boilers).

Production of bioethanol/biodiesel from cellulosic raw material.

Minimize water consumption of pulp production processby 50%. ▲ Part of the recovery boiler at the ENCE pulp mill, Spain




Market

Contents

▲ Packaging paper line for Hebei Yongxin Paper, China


ANDRITZ Rollteck

Product/service:Winders and core cutters for the paper industry; service for winder and cutter components.

Fit to existing portfolio:Complementing product offerings for pulp and paper industries.

Location:Holzmaden, Germany.

Acquired in:Q3 2009

Sales:~ 8 MEUR/a

Employees:~ 20

Adds product know-how in paper

▲ Winding and slitting technology for paper machines


▲ Nonwovens production line

Product/service:Machinery and systems for production of nonwovens.

Product range:Nonwovens forconsumergoods industry.

Fit to existing portfolio:Complementing technology (hydrotanglement) to ANDRITZ Küster’s nonwovens offerings.

Location:Montbonnot, France

Acquired in:Q4 2009

Sales:~ 20 MEUR/a

Employees:~ 50

ANDRITZ Perfojet (1)Strengthening nonwovens product portfolio


ANDRITZ Perfojet (2)Solid long-term market growth

Sources: EDANA, INDA, ANDRITZ estimation

2.22.7

3.2

4.04.4

5.5 5.6

7.0

1994 1997 1999 2002 2004 2008 2009 2012E

Worldwide nonwovens production in million t


Product/service:Systems and equipment for the production of biaxially oriented plastic films.

Product range:Plastic film packagingfor food, beverages,cigarettes etc.

Fit to existing portfolio:Enhancement of activities in fast growing packaging market.

Location:Salzburg, Austria

Acquired in:Q1 2010

Sales:~ 70 MEUR/a

Employees:~ 60

ANDRITZ Biax (1)Enhancement of activities in fast growing packaging market

Plant for the production of biaxially oriented plastic films ►


ANDRITZ Biax (2)World production growth of ~7% p. a. on average

Source: ANDRITZ

2.93.3

3.84.4

5.15.8

6.7

10.3

8.9

7.7

1994 1996 1998 2000 2002 2004 2006 2008 2010E 2012E

Worldwide production of biaxially oriented plastic films in million t


Growth strategyTechnologies for energy generation in pulp and paper mills

Biomass to heat and electrical power:> biomass boilers> gasification

Biomass to liquid fuel:> ethanol – 2nd generation> biodiesel – 2nd generation

Renewable energies for pulpand paper industries

Growth in fast developing niches for film packaging and nonwoven.

Enhancement of product portfolioin fast growing segments


Biomass boiler atPortucel Soporcel’s

Cacia mill, Portugal ►



Market

Contents


Expectations for next 12 months and main market drivers

Medium-/long-term prospects for greenfield pulp mills look attractive; mid-term several announced pulp mill projects: Arauco/Stora Enso, Uruguay; CMPC, Brazil; Eldorado Papel e Celulose/JBS Friboi, Brazil; Fibria/Stora Enso, Brazil; Fibria, Brazil; Suzano, Brazil; Chenming, China.

Good demand for environmental technologies, especially recovery and biomass boilers.

Expectations for next twelve months

Long-term shift of production capacity from northern to southern hemisphere to continue. Overcapacity and profitability challenge of pulp and paper industries in traditional markets leading to continuing capacity adjustments (mill closures), mergers, and alliances as well as financial restructurings (receiverships).

Increased investments in environmental technologies (especially biomass/recovery boilers) due to rising environmental regulations/incentives, as well as cost savings considerations.

Increasing project activity for recycled fiber lines in China.

Strong demand growth for paper in emerging markets (especially all types of tissue paper, but also board) spur pulp demand.

Main market drivers

Good project activity expected for greenfield pulp mills


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.

According to IFRS.

Disclaimer

andritz pulp & paper, capital systems · 8 andritz pulp & paper, capital systems ......

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