CORPORATE OVERVIEW DANIELI GROUP

Transcription

1 CORPORATE OVERVIEW DANIELI GROUP DANIELI THE RELIABLE INNOVATIVE TEAM IN THE METALS INDUSTRY London, 5 December 2007

2 Content INTRODUCTION Danieli at the glance A worldwide operator Structure Ownership DANIELI: ENGINEERING & CONSTRUCTION DIVISION Products and Markets Prospective for the market International growth ABS: STEEL MAKING DIVISION A turnaround history Products portfolio DANIELI GROUP FINANCIAL HIGHLIGHTS Basic items Actual and forecasted trend Capex Order backlog Shares performance 2

3 DANIELI ENGINEERING & MANUFACTURING DIVISION 2

4 4 Danieli Headquarters

5 Danieli at a glance Danieli was founded in 1914 and since the beginning was one of the pioneers to use electric arc furnaces in steelmaking and in the industrial application of the minimill concept. Danieli designs, manufactures, erects and start up steel plants and equipment both on turn key and single units supply basis and operates amongst the three largest worldwide suppliers of equipment and plants to the steel industry. Danieli is also directely involved in the steel sector through ABS, the Steelmaking Division fully owned. Danieli is worldwide recognized as one of the most innovative and reliable operator in the steel industry and operates with eleven design center, five production units and four engineering departments: - Buttrio, Italy (Danieli headquarters), - Meinerzhagen, Germany (Danieli Fröhling) - Beijing, China (Danieli Metallurgical Beijing) - Bangkok, Thailand (Danieli Far East) - Shanghai, China (Danieli Changsu) Danieli operates with his own modern workshop to manufacture all nobles parts of the plants and is historically focused on a constant technological improvement. - Ukraina: Danieli Heavy Machinery - Polska: Danieli Polska - Romania: Danieli Romania - Spain: Procome SA - Germany: W+K Gmbh - Austria: Danieli Engineering Service Gmbh - Japan: Danieli Engineering Japan 5

6 A worldwide operator Construction / Engineering ITALY - ROMANIA - SPAIN - INDIA THAILAND - P.R. CHINA - AUSTRIA Engineering USA - FRANCE - UK - THE NETHERLANDS - SWEDEN POLAND - GERMANY - UKRAINA - JAPAN 6

7 Danieli group structure DANIELI ITALY Industrielle Beteiligung SA LUXEMBOURG Danieli International SA LUXEMBOURG EUROPE AMERICA ASIA ITALY NETHERLANDS UK GERMANY AUSTRIA SWEDEN POLAND UKRAINE RUSSIA FRANCE SPAIN USA CANADA CHINA THAILAND INDIA JAPAN Danieli Engineering Danieli Corus TS Danieli Centro Metallics Danieli Danieli Centro Met Davy Distington Ltd Danieli Wean United Danieli Fröhling Danieli Morgårdshammar GmbH Danieli Centro Tube W+K Industrie Technik Danieli Centro Maskin GmbH Danieli Breda Danieli Engineering & Danieli Environment Services GmbH Danieli Service Danieli Construction Spa Danieli Automation Spa Danieli Centro Combustion Spa Stem Srl Inde Spa More Srl Danieli Centro Maskin Danieli Centro Met Morgårdshammar AB Sund Birsta AB Danieli Polska Engineering Danieli Heavy Machinery Danieli Russia Engineering Rotelec SA Danieli Iberica SA Procome SA Danieli Corporation inc Danieli Technology Inc Morgardshammar Inc Danieli Canada Inc Danieli Metallurgical Equipment Beijing Danieli Metallurgical Equipment Changshu Danieli Engineering India Danieli Far East Danieli Engineering Japan Investment Holding Companies Product Lines Industrial Companies Technical Offices 7

8 Ownership DANIELI is listed in the Italian Stock Exchange since The shares capital amount is divided into 81,304,566 shares consisting: - 40,879,533 ordinary shares - 40,425,033 preferred shares Main shareholders, on last General Assembly date, are: SIND INTERNATIONAL 65.18% (owned by Mr. Benedetti and Danieli family) Bank of New York, Luxembourg S.A. 2.92% Credit Suisse Securities Europe Limited 2.70% DANIELI & C. Spa 2.38% TOTAL 73.18% 8

9 Danieli Engineering and Construction divisions Ironmaking/ Steelmaking Flat products/ Hot Engineering Flat products/ Cold Customer service Long products/ Rolling Extrusion, forging Automation/ Process Control 9

10 Danieli Engineering and Construction Modern Blast - Products Furnace operations and market DANIELI is involved in both the construction and sale of plants for the iron and steel industry, offering a range of machines from primary process management to production of the finished product: practically from ore to finished product. In summary, the Danieli Group designs and builds plants for all process areas, such as: - Pellet production plants ; - Blast furnaces; - Direct reduction; - Steelworks for production of liquid steel; - Continuous casting for: Blooms and billets, slabs and thin slabs; - Rolling mills for long products; - Rolling mills for seamless tubes; - Hot and cold rolling mills for flat products; - Process lines for flat products; - Plants for secondary processing, forging processing and extrusion processing; Portfolio can be summarise in four main classes: - Processing products (Pelletising, DRI and Blast Furnaces plants) - Steel making and casting Products - Long Products -Flat Products 10

11 Danieli Engineering and Construction - Products and market DANIELI is organized to provide a top performance supply either for simple new equipment, revamping or a turnkey project (that are antithetic in terms of value & complexity). Thanks to synergy with other Companies belonging to the Group, DANIELI is fully subsidizing engineering, manufacturing (electrical, automation, mechanical & civil), project management, erection, commissioning and after sales service. 11

12 Danieli Engineering and Construction - Products and market DANIELI CORU S DANIELI CORU S DANIELI CORU S DANIELI D AVY DISTINGTO N DANIELI ROTELEC DANIELI WEAN UNITE D DANIELI CENTRO COMBUSTIO N DANIELI WEAN UNITE D COKE PLANT BLAST FURNACE BASIC OXYGEN CONVERTER SLAB CONTINUOUS CASTING PLATE AND HOT STRIP MILL COLD PLATE FINISHING DANIELI WEAN UNITE D DANIELI ROTELEC DANIELI WEAN UNITE D DANIELI CENTRO COMBUSTIO N DANIELI ROTELE C DANIELI WEAN UNITE D DANIELI FRÔHLIN G DANIELI WEAN UNITE D DANIELI CENTRO COMBUSTIO N DANIELI FRÔHLIN G DANIELI W+K INDUSTRIE TECHNI K THIN SLAB CONTINUOUS CASTING HOT STRIP MILL COLD STRIP/ FOIL MILL STRIP PROCESSING LINES WELDED PIPE LINES Cleaning Pickling DANIELI CENTRO ME TALLICS IRON ORE MINING, AND PROCESSING DANIELI CENTRO ME T LADLE TREATMENT DANIELI CENTRO ME T VACUUM TREATMENT DANIELI CENTRO TUB E DANIELI CENTRO COMBUSTIO N TUBE PROCESSING PLANT Galvanizing Coating Ti nning Slitting Cutting-to-lentgh Blanking DANIELI CENTRO ME T DANIELI ROTELEC DANIELI MORGÅRDSHAMMA R DANIELI CENTRO COMBUSTIO N BLOOM /BILLET CONTINUOUS CASTING SECTION MILL DANIELI CENTRO ME TALLICS DANIELI CENTRO ME T DANIELI MORGÅRDSHAMMA R DANIELI CENTRO COMBUSTIO N DANIELI CENTRO COMBUSTIO N DANIELI CENTRO MASKI N DIRECT REDUCTION PLANT ELECTRIC ARC FURNACE BAR/ WIRE ROD MILL HEAT TREATMENT DRAWING, PEELING, GRINDING DANIELI CENTRO ME T DANIELI CENTRO ME T DANIELI BREDA DANIELI CENTRO COMBUSTIO N SCRAP PROCESSING INGOT CASTING DIE FORGING DANIELI MORGÅRDSHAMMA R DANIELI CENTRO COMBUSTIO N BLOOMING MILL 12

13 Danieli Engineering and Construction - Products and market The total market value for the engineering and construction market will be around 15 billion USD in % of the total market is shared by four big players: SMS, Siemens, VAI, D&C and the Japanese companies. 40% of the remaining market is subdivided by many small companies and medium specialised companies. These players have the capability to compete only on particular technologies and in general they are active in the revamping projects. The peculiarity of the engineering and construction market is the high entry barriers. Only the four big players mentioned above are capable to provide turn key plants and the technology necessary to cover the complete range for the steel business. Therefore, the market is: SMS 30% VAI - Siemens 30% 40% 60% DANIELI 25% JAPANESE 15% Out of 15 billion USD, 50% for equipment and plants for flat products, 45% for long products and the balance for other sectors (tube plants, etc). 13

14 Prospective for the market The progressive normalization of world politics and the good prospects for future steel consumption are driving our customer to migrate their production to new markets (Brasil, India, Russia and Middle East ) where cheaper transformation process costs are guaranteed A number of trends are clearly identifiable: - Modernization, rationalization and quality upgrades provide the main impetus behind investment in the traditional steel producing regions of Europe and the CIS. There were also signs of a slight upturn in North American investment. - New interest in the hot metal and liquid steel capacity forecasts an additional plant capacity not only in China but also in countries with access to local iron ore reserves, (e.g. Brazil, India, Iran and the CIS states). - On the basis of the growing domestic demand for steel and the availability of local supplies of energy at reasonable cost, we are expecting for new large-scale projects demand, and further expansion-related orders shall be developed the Middle East region. 14

15 International growth Danieli metamorphosis continued in the last period with a strong internationalization to develop a new global approach to customer service and customer management, as well as ensuring more competitive production with new workshop in China, Thailand and new engineering offices in India, Ukraine and Austria. 15

16 16 DFE Danieli Far East - Thailand

17 DME Danieli Metallurgical Equipment - Beijing 17

18 DME Danieli Metallurgical Equipment - Changshu 18

19 Danieli Engineering & Service - Austria 19

20 DANIELI STEELMAKING DIVISION 20 2

21 ABS: Danieli Steelmaking Division LADLE TURRET ABS ACCIAIERIE BERTOLI SAFAU HIGH SPEED CASTER TUNNEL FURNACE ROUGHING / INTERMEDIATE FINISHING MILL DWB TMB WIRE ROD COOLING COIL COMPACTOR AUTOMATIC STAND CHANGING AND STORING SYSTEM STACKING STATION COOLING BED 21 ON-LINE ANNEALING CHAMBER

22 22 ABS overview

23 ABS: Danieli Steelmaking Division - A turnaround hystory ABS, whose origin dates back in 1909 is based on three production plants in the province of UDINE and supply speciality steels for the most diverse applications: from cars to industrial vehicles, mechanical industry, weldless pipes for mechanical and petrochemical industries, bearings, special sections for railways equipm and re-rolling and forging steels ABS is now become one of the first 4 European players in terms of product selection and volume. In has produced 1,100,000 tons of liquid tapped steel equivalent to 960,000 tonns of sellable products. 300,000 tonns of Big Selection Products has been delivered. 23

24 ABS: Danieli Steelmaking Division - A turnaround hystory Main issues in the industrial strategy are: - Optimisation and enlargement of new products lines and market shares - Reduction of transformation costs - Improvement in the environmental system - General improvement in product quality - Continuous increase in the export sales Its a turnaround history granted by the management capability to improve the existing production helped by the performance of the steel price together with the increasing of the plant flexibility 24

25 ABS: Danieli Steelmaking Division - Products portfolio With the aim to develop ABS towards the speciality steel sector, in the last periods the company has developed and invest in the quality of the production process in order to obtain best quality, a wide range of products both in steel grade and in dimension. Nowaday, the ABS products portfolio is made by: Ingots Conticast sections Forged Products Rolled products 25

26 Danieli Group Financial Highlights: Pig iron for basic Minimills items 2,500 2,250 2,000 1,750 1,500 1,250 1, , ,150 Sales revenue 1,495* 2,002* 2,457* ,457* Net income 35* 46* 73* Net worth 508* 553* 598* * According to IAS/IFRS 26 EURO (1,000,000)

27 Danieli Group Financial Highlights: actual and forecasted trend 2003/ / / /2007 Forecast 2007/2008 Sales revenue 1,225 1,495 2,002 2, ,500-2,700 EBITDA EBIT NET INCOME Net financial position Order backlog 1, ,149 3,098 3,100-3,300 EURO (1,000,000) 27

28 Danieli Group Financial Highlights: ABS trend 2003/ / / /2007 Sales revenue EBITDA EBIT (13.9) NET INCOME (22.6) Net financial position (264) (247) (243) (209) Order backlog EURO (1,000,000) 28

29 Danieli Group Financial Highlights: CAPEX Steelmaking Plant making TOTAL 2006/ / / EURO (1,000,000)

30 Danieli Group Financial Highlights: order backlog items Other Long products division Far East Italy 22% 30% 29% 13% Steelmaking 12% 34% Flat products division 20% 16% Steel meltshop division Africa & Middle East 17% 7% Americas Europe ORDER BACKLOG AT 30/06/07 PER PRODUCT LINE ORDER BACKLOG AT 30/06/07 PER GEOGRAPHICAL AREA 30

31 Steel & plant making players - Relative performance Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 DJ Euro St Telecom DJ Euro St Utilities DJ Euro St Oil & Gas DJ Euro St Banks DJ Euro St Insurance DJ Euro St Industrials DJ Euro St Food & Beverage DJ Euro St Auto "Steel making players" index "Plant making players" index Danieli Performance as of March 12, 2007 since Jan 2006 Jan 2007 DJ Euro St Telecom 7,4% -3,5% DJ Euro St Bank 22,0% 0,0% DJ Euro St Food & Beverage 22,0% -0,1% DJ Euro St Utilities 32,9% -1,3% DJ Euro St Insurance 13,7% -1,5% DJ Euro St Auto 35,3% 8,9% DJ Euro St Oil & Gas -1,5% -7,1% DJ Euro St Industrials 23,4% 3,0% "Steel making players" index 101,3% 9,0% "Plant making players" index 52,3% 3,9% Source: BNP Paribas Danieli 140,2% 1,7% 31

32 Steel making players - Relative performance Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Voestalpine Outokumpu Acerinox Rautaruukki Danieli Performance as of March 12, 2007 since Jan 2006 Jan 2007 Voestalpine 131,9% 17,3% Outokumpu 129,9% -0,8% Acerinox 56,0% -17,4% Rautaruukki 76,7% 22,5% Average 98,6% 5,4% Danieli 140,2% 1,7% Source: BNP Paribas 32

33 Plant making players - Relative performance Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Duerr Foster Wheeler Danieli Performance as of March 12, 2007 since Jan 2006 Jan 2007 Duerr 8,5% 6,4% Foster Wheeler 55,6% 3,8% Average 32,0% 5,1% Danieli 140,2% 1,7% Source: BNP Paribas 33

34 Thank you for your kind attention