ANDRITZ PULP & PAPER – focus on biomass Market drivers, technologies, and products 2 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ Capital Market Days 2009  ANDRITZ PULP & PAPER – overview  Biomass and market drivers  ANDRITZ’s products in biomass  Summary and conclusions Contents 3 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Full line supplier ANDRITZ PULP & PAPER business lines  Bubbling fluidized bed boilers for bio-fuels.  Biomass gasifiers  Complete lines for tissue and board.  Stock preparation and approach flow. Complete lines for chemical, mechanical, and recycled fiber production. Main products Power generating industry Paper mills Pulp mills Customers 4 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain processes offered by ANDRITZ Market pulp Market DIP Market pulp Tissue Paper/board Service incl. engineered wear products, upgrades, modernizations, maintenance packages, automation solutions, etc. Drying Baling Palletizing Wood yard Chemical pulp Recycled fibers Mechanical pulp Stock prep. Chemical recovery Washing Screening Bleaching Dewatering Drying Baling Board and tissue machines Refining Bleaching Drying Dewatering Deinking Screening/ Cleaning Dewatering Palletizing Washing/ Bleaching Pulping Cooking Calanders Coating Processes and equipment Full line capability 5 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Strong growth through organic expansion and acquisitions Focus: complementary products, technologies, and businesses 329 719 883 672 810 885 1,327 1,462 1,304 1,033 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 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 Pilão 2007 Bachofen + Meier 2007 Sindus 2008 Kufferath 2009 Rollteck Acquisitions Sales ANDRITZ PULP & PAPER (MEUR) 6 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Long-term development of profitability Decline in profitability from 2004 to 2008 mainly due to:  decline of service sales as % of total business area’s sales – resulting from the strong growth of the capital business and  investments in expansion of product scope (board machine, biomass power boiler, etc.). * excluding restructuring 2.9* 5.0 6.0 5.8 6.2 7.3 6.1 5.8 6.1 4.3 5.5 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 H1 2009 EBITA margin ANDRITZ PULP & PAPER (%) Average EBITA margin 2004-2008: 6.1% Average EBITA margin 1999-2003: 5.6% 5.6 6.1 EBITA ANDRITZ PULP & PAPER (MEUR) 13.5* 66.3 87.8 75.9 63.6 64.8 49.1 39.2 53.9 30.8 18.2 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 H1 2009 7 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Europe: 61% Asia: 9% South America: 12% North America: 18% Europe: 41% Asia: 20% South America: 17% North America: 13% Others: 8% Global presence of ANDRITZ PULP & PAPER Sales by region 2008 Employees by region 2008 (5,102 employees as of end of 2008) 8 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ is also engaged in the maintenance of most of these mills. Important ANDRITZ PULP & PAPER references at a glance CMPC Santa Fe Aracruz Botnia Fray Bentos VCP Tres Lagoas Veracel Suzano Mucuri UPM Pietarsaari APP Jiang Lin Mercer Stendal Marusumi Ohe Tiger Huaihua Ence Navia Sappi Umkomaas Altri Figueira da Foz Mondi Syktyvkar April Riau Andalan SCA Östrand Södra Värö Bowater Catawaba Soporcel Lavos Visy Tumut UPM Kuusankoski SCA Obbola VCP Jacarei Arauco Valdivia Andhra Pradesh Rajahmundry Portucel Cacia Mondi Ruzomberok Ence Huelva Amcor Maryvale Weyerhaeuser Albany Weyerhaeuser Campti Domtar Kingsport Arauco Itata Mondi Richards Bay Zicunaga Hernani Weyerhaeuser Valliant Cenibra Belo Oriente Guizhou Chitianhua CMPC Santa Fe Aracruz Botnia Fray Bentos VCP Tres Lagoas Veracel Suzano Mucuri UPM Pietarsaari APP Jiang Lin Mercer Stendal Marusumi Ohe Tiger Huaihua Ence Navia Sappi Umkomaas Altri Figueira da Foz Mondi Syktyvkar April Riau Andalan SCA Östrand Södra Värö Bowater Catawaba Soporcel Lavos Visy Tumut UPM Kuusankoski SCA Obbola VCP Jacarei Arauco Valdivia Andhra Pradesh Rajahmundry Portucel Cacia Mondi Ruzomberok Ence Huelva Amcor Maryvale Weyerhaeuser Albany Weyerhaeuser Campti Domtar Kingsport Arauco Itata Mondi Richards Bay Zicunaga Hernani Weyerhaeuser Valliant Cenibra Belo Oriente Guizhou Chitianhua 9 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Wood yard Cooking Bleach plant Pulp dryer Baling line Washers Rec. boiler Evaps WL plant  Order placed May 2007.  Start-up in March 2009.  Complete fiberline from digester to finished bales.  Complete white liquor production plant. VCP – Votorantim Celulose e Papel, Brazil World’s largest single-line pulp mill (1.3 mill. t/a pulp production) 10 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Wood yard Cooking Bleach plant Pulp dryer Baling line Washers Rec. boiler Evaps WL plant Hunan Tiger Forest & Paper Group Co., Ltd., China 400,000 t/a pulp production  Start-up August 2008.  Softwood pulp production.  Andritz’s scope of supply comprises:  wood handling  cooking  washing  screening and bleaching  pulp drying and bale handling  chemical recovery boiler and evaporation,  lime kiln and recausticizing. [...]... million USD 18 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 19 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Pulp mill – biomass conversion into pulp and. .. plant in Estonia, start-up 2010: steam flow 94 t/h power output 18 MWe 23 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 24 ANDRITZ PULP & PAPER – Capital Market Days... integration has been accomplished Operation parameters for the full scale plant have been generated 34 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 35 ANDRITZ PULP &. .. ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Reference picture ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ s products in biomass Summary and conclusions 12 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Biomass – what is it? Woody/tree crops Wood chips, HW and SW-residual (birch, poplar, eucalyptus, etc.) Engineered high efficiency... Capital Market Days 2009, Spain ANDRITZ bio-ethanol process Feedstock handling Pre-hydrolysis Washing C6 Steam explosion Enzymatic hydrolysis C5 Enzymatic hydrolysis Fermentation Distillation Separation Evaporation? Lignin Dehydration Ethanol 30 Power boiler Power ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ core competence ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER –. .. 21 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ biomass boilers New business with technology for green electricity markets Driver: high feed in tariffs in different countries depending on local legislation Market outlook very good for Europe and US 22 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Growing reference base for green energy production First boilers in operation... competence ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 31 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Biomass gasification Technology alternatives Fixed bed Bubbling fluidized bed Circulating fluidized bed... Fermentation of starch based Biomass Biofuel Power boiler Heat/electric power Mechanical-chemical conversion Biofuel Pretreatment fermentation of cellulosic Biomass Bio-chemical conversion Bio-Ethanol 1st generation Bio-Ethanol 2nd generation Biofuel Pressing of oil out of seeds and oil rich plant + conversion Bio-Diesel 1st generation Biofuel Process offered by ANDRITZ 14 ANDRITZ PULP & PAPER – Capital Market. .. China 700,000 t/a pulp production Start-up 2011 Hardwood pulp production Andritz s scope of supply comprises: wood handling cooking washing screening and bleaching pulp drying and bale handling chemical recovery boiler and evaporation lime kiln and recausticizing Wood Bleach Cooking Washers yard plant Evaps 11 Pulp dryer Baling line Rec WL boiler plant ANDRITZ PULP & PAPER – Capital Market Days 2009,... entire process chain – from raw material handling up to the final product Able to build large scale equipment and processes to achieve economies of scale 25 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Ethanol production Comparison 1st and 2nd generation New challenges producing cellulosic ethanol vs corn ethanol: 26 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain Cellulosic ethanol . ANDRITZ PULP & PAPER – focus on biomass Market drivers, technologies, and products 2 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain ANDRITZ. 2009  ANDRITZ PULP & PAPER – overview  Biomass and market drivers  ANDRITZ s products in biomass  Summary and conclusions Contents 13 ANDRITZ PULP &