Slide 1: Results for 2017
RESULTS FOR 2017 ANDRITZ GROUP MARCH 2, 2018
Slide 2: ANDRITZ FY 2017 at a glance
ANDRITZ FY 2017 AT A GLANCE Mixed performance: order intake below expectations, solid profitability. Group sales: ~5.9 billion euros Group order intake: ~5.6 billion euros Slightly down as expected, mainly due to Hydro as a result of • Unchanged from 2016, below expectations. declining order intake
Slide 3: Group sales slightly below level of last year
GROUP SALES SLIGHTLY BELOW LEVEL OF LAST YEAR Decrease mainly due to Hydro as a result of lower order intake in the past few years. SALES (MEUR) SALES BY BUSINESS AREA (MEUR) -2.5% 2017 2016 +/- 6,039 5,889 Hydro 1,583 1,752 -10% Pulp & Paper 2,060 2,094 -2% Metals 1,644 1,598 +3% Separation 603 594
Slide 4: Favorable development of service business
FAVORABLE DEVELOPMENT OF SERVICE BUSINESS Increase in all four business areas. SHARE OF SERVICE SALES OF GROUP AND BUSINESS AREA SALES (%) 2016: ANDRITZ GROUP 2017: +200 bps 32% 34% 2016: Hydro 2017: 2016: Metals 2017: +300 bps +200 bps 26% 29% 22% 24% 2016: Pulp & Paper 2017: 2016: Separation 2017:
Slide 5: Group order intake practically unchanged compared to 2016
GROUP ORDER INTAKE PRACTICALLY UNCHANGED COMPARED TO 2016 Good development in Pulp & Paper, Metals Processing, and Separation negatively offset by weakness in Hydro. ORDER INTAKE (MEUR) ORDER INTAKE BY BUSINESS AREA (MEUR) 2017 2016 +/- +0.2% Hydro 1,317 1,500 -12% 5,569 5,580 Pulp & Paper 2,033 1,9
Slide 6: Group order backlog down compared to year-end 2016
GROUP ORDER BACKLOG DOWN COMPARED TO YEAR-END 2016 Decrease mainly due to Hydro business area. ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) -6% 7,389 7,511 7,324 6,789 6,683 6,615 6,383 2011 2012 2013 2014 2015 2016 2017 ORDER BACKLOG BY BUSINESS AREA (AS OF END OF PERIOD; IN MEUR) HYDRO AND PULP &
Slide 7: Earnings and profitability at solid levels despite decrease in sales
EARNINGS AND PROFITABILITY AT SOLID LEVELS DESPITE DECREASE IN SALES EBITA (MEUR) +0.4% • Despite slight decline in sales, EBITA, at 444.0 MEUR, reached practically last year’s 442.1 444.0 level (2016: 442.1 MEUR). EBITA includes net positive one-off effect of ~25 MEUR (mainly from sale of the Schul
Slide 8: Key figures 2017 at a glance
KEY FIGURES 2017 AT A GLANCE UNIT 2017 2016 +/- Order intake MEUR 5,579.5 5,568.8 +0.2% Order backlog (as of end of period) MEUR 6,383.0 6,789.2 -6.0% Sales MEUR 5,889.1 6,039.0 -2.5% EBITDA MEUR 541.7 542.4 -0.1% Significant decrease due to EBITA MEUR 444.0 442.1 +0.4% substantially lower interest
Slide 9: Proposed dividend of 1.55 EUR/share
PROPOSED DIVIDEND OF 1.55 EUR/SHARE Increase in payout ratio in line with dividend policy. DIVIDEND PER SHARE (EUR) 1.50 1.55* 1.35 1.20 1.10 1.00 0.85 0.50 0.55 0.50 0.50 0.38 0.18 0.25 0.11 0.13 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * Proposal to AGM PAYOU
Slide 10: Hydro (1): Unchanged challenging market environment
HYDRO (1): UNCHANGED CHALLENGING MARKET ENVIRONMENT ANDRITZ will refurbish the E.B. Campbell hydroelectric • New hydropower plants power station from SaskPower, Canada. Some new projects in emerging markets, particularly in Asia, Africa and South America, are currently in the planning phase. • Pumps
Slide 11: Hydro (2): Decrease in order intake and sales
HYDRO (2): DECREASE IN ORDER INTAKE AND SALES Satisfactory profitability due to ongoing capacity adjustments. UNIT 2017 2016 +/- Order intake significantly down due to unchanged Order intake MEUR 1,317.2 1,500.3 -12.2% weak market conditions. Order backlog (as of end of period) MEUR 2,921.8 3,269.6
Slide 12: Pulp & Paper (1): Continued solid market environment
PULP & PAPER (1): CONTINUED SOLID MARKET ENVIRONMENT • Pulp ANDRITZ will supply a large paper machine for the production of bleached kraft paper grades to Zellstoff Pöls AG, Austria. Satisfactory project and investment activity, particularly for modernization of existing pulp mills. • Paper Satisfac
Slide 13: Pulp & Paper (2): Favorable business development
PULP & PAPER (2): FAVORABLE BUSINESS DEVELOPMENT Earnings and profitability at record levels. UNIT 2017 2016 +/- Order intake increased in the capital business as well as in Order intake MEUR 2,033.4 1,919.5 +5.9% the service business. Order backlog (as of end of period) MEUR 1,787.0 1,803.3 -0.9% P
Slide 14: Metals (1): Only a few order awards in top Metal Forming segment
METALS (1): ONLY A FEW ORDER AWARDS IN TOP METAL FORMING SEGMENT Recovery of Metals processing market. Production of double parts at an automotive components • Metal Forming supplier with a servo press in tie rod design with 16,000 kN press force. Moderate project and investment activity in the top
Slide 15: Metals (2): Earnings and profitability at unsatisfactory levels
METALS (2): EARNINGS AND PROFITABILITY AT UNSATISFACTORY LEVELS Positive-one off effect negatively offset by weak performance of Metals Processing. UNIT 2017 2016 +/- Significant increase in order intake in Metals Processing; order intake in Metal Forming Order intake MEUR 1,606.5 1,551.5 +3.5% (Sch
Slide 16: Separation (1): Improved project and investment activity
SEPARATION (1): IMPROVED PROJECT AND INVESTMENT ACTIVITY Mainly for solid/liquid separation equipment. • Municipal Investment activity at good levels, mainly in developed markets. • Industrial Good project activity in mining and minerals; satisfactory demand in chemicals; continued low investment ac
Slide 17: Separation (2): Improved business development
SEPARATION (2): IMPROVED BUSINESS DEVELOPMENT Recovery of EBITA margin from very low levels of the past years. UNIT 2017 2016 +/- Increased order intake for solid/liquid separation Order intake MEUR 622.4 597.5 +4.2% equipment; low order intake in feed & biomass pelleting. Order backlog (as of end o
Slide 18: Outlook for 2018
OUTLOOK FOR 2018 Unchanged expectations for markets served by ANDRITZ. Hydro Pulp & Paper • Project activity for modernizations and new • Project and investment activity to hydropower stations to remain at subdued continue at a high level in 2018, level. especially for modernization of • Some larger
Slide 19: Disclaimer
DISCLAIMER This presentation contains valuable, proprietary property belonging to ANDRITZ AG or its affiliates (“the ANDRITZ GROUP”), an d no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales contracts that may be co