The 6th Baader Investment Conference had a successful start yesterday. On the first of four days, 22 companies held presentations at our event venue Sofitel in Munich. In addition, we arranged some 250 individual and small group meetings between investors and 37 companies.

Most presenting companies saw themselves well on track to increase profitability further over time. Even though the macro environment would still provide occasional challenges, many corporates expressed confidence in their ability to generate further earnings improvements. In this respect, All for One Steeb, ANDRITZ , AURELIUS , Beiersdorf , B.R.A.I.N., DKSH, SGS and Sulzer also indicated their readiness for selective acquisitions to sustain future growth.

Several companies also mentioned that they expected further benefits from efficiency programs and growth initiatives. While ANDRITZ saw itself on track to counter the weakness in its Hydro and Metals business segments, Sulzer hinted an increased likelihood of overachieving their 2018 cost saving target. On top, Beiersdorf was confident that a bundling of some activities in its consumer segment would unlock fresh growth potential, while Wacker Neuson highlighted measures to improve capital efficiency.

ANDRITZ Outtakes:

Business outlook:

ANDRITZ is confident to return to significant average growth of 5-8% p.a. (including acquisitions) based on good business prospects for P&P (several greenfield projects ahead) and a recovery in the Hydro business volume (based on growth in Asia/China). The projected average EBITA margin for 2015-2019 remains at 7-8%, supported by price discipline, new service products and further cost optimization.

Points of interest:
1) ANDRITZ is constantly reducing Hydro Power capacities in Europe and transferring them to China and India, resulting in further cost improvement. Resulting restructuring charges will be minor (max. EUR 5-10mn). 2) Schuler will focus in the future as well on the B market segment (presses for non-German OEMs), where the company is not present so far. This should help to improve growth, even considering that the margin will be diluted to some extent.