Andritz Ag · VIE:ANDR
Andritz — Q3 2024 Earnings Presentation
28 slides from Andritz's earnings presentation, Oct 31, 2024
Slide 1: Q1-Q3 2024 Financial Results
ANDRITZ GROUP Q1-Q3 2024 FINANCIAL RESULTS OCTOBER 31, 2024
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2024 This presentation contains forward-looking statements, which include statements about future events, future financial performanc e, plans, strategies, expectations, prospects, regulatory changes, and changes in customer investment activity. Such statements may be i
Slide 3: Agenda
AGENDA CEO Key Messages & 01 Q3 / Q1-Q3 Highlights Financial Performance 02 Q3 / Q1-Q3 2024 03 Update on Business Areas 04 Outlook 2024 & Targets 2026 3
Slide 4: CEO Key Messages & Q3 / Q1-Q3 2024 Highlights
01 CEO KEY MESSAGES & Q3 / Q1-Q3 2024 HIGHLIGHTS 4
Slide 5: Solid Q3 Development Despite Challenging Environment
SOLID Q3 DEVELOPMENT DESPITE CHALLENGING ENVIRONMENT Increasing order intake in Q3 • Continuously difficult market conditions • High interest in innovative solutions for the green transition (Environment & Energy) • Solid Service business in Q3, growth in order intake YTD Slight decrease in revenue
Slide 6: Revenue Guidance 2024 Slightly Adjusted
REVENUE GUIDANCE 2024 SLIGHTLY ADJUSTED Market development • Project activity is picking up but no quick recovery in markets expected • Growing demand for green technologies • Growth in Service business • Large existing order backlog Revenue guidance 2024 slightly adjusted • Slightly decreasing reve
Slide 7: Major Financial KPIs Q3
SOLID DEVELOPMENT DESPITE THE CONTINUED DIFFICULT ECONOMIC ENVIRONMENT Major financial KPIs Q3 ORDER INTAKE REVENUE ORDER BACKLOG 1.9 billion EUR 2.0 billion EUR 9.4 billion EUR (Q3 2023: 1.8 billion EUR | +6%) (Q3 2023: 2.1 billion EUR | -3%) (Q3 2023: 10.4 billion EUR / -9%) NET INCOME EBITA (repo
Slide 8: Major Financial KPIs Q1-Q3
SOLID DEVELOPMENT DESPITE THE CONTINUED DIFFICULT ECONOMIC ENVIRONMENT Major financial KPIs Q1-Q3 ORDER INTAKE REVENUE ORDER BACKLOG 5.7 billion EUR 6.0 billion EUR 9.4 billion EUR (Q1-Q3 2023: 6.5 billion EUR | -12%) (Q1-Q3 2023: 6.2 billion EUR | -3%) (Q1-Q3 2023: 10.4 billion EUR | -9%) NET INCOM
Slide 9: Order Intake Increasing in Q3
ORDER INTAKE INCREASING IN Q3 ORDER INTAKE (in MEUR) ORDER INTAKE (in MEUR) ORDER INTAKE BY REGION Q1-Q3 2024 VS. Q1-Q3 2023 (%) Q3 2024 Q3 2023 +/- -12% Pulp & Paper 482.9 598.4 -19% 6,516 Metals 634.1 441.3 +44% 5,749 Hydropower 447.2 323.8 +38% 1,803 +6% Environment & Energy 338.9 440.0 -23% Euro
Slide 10: Slight Decline in Revenue
SLIGHT DECLINE IN REVENUE REVENUE (in MEUR) REVENUE (in MEUR) REVENUE SPLIT: CAPITAL / SERVICE Q1-Q3 2024 VS. Q1-Q3 2023 (%) -3% Q3 2024 Q3 2023 +/- Pulp & Paper 867.3 966.2 -10% 6,213 6,028 Metals 456.2 456.0 0% Hydropower 368.8 362.9 +2% -3% 2,104 2,042 Environment & Energy 349.2 319.0 +9% Service
Slide 11: Slight Decline in Order Backlog
SLIGHT DECLINE IN ORDER BACKLOG Pulp & Paper and Hydropower account for 63% of total order backlog 10,822 10,569 -3% ORDER BACKLOG BY BUSINESS AREA 10,408 10,361 Order backlog in MEUR Q1-Q3 2024 VS. FY 2023 (%) 9,859 9,977 9,873 10,003 9,709 9,435 9,383 IN MEUR 8,166 Environment & 7,925 7,397 7,330
Slide 12: Stable Earnings Development
STABLE EARNINGS DEVELOPMENT EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) 0% 0% 509 507 513 510 (8.2%) (8.4%) (8.3%) (8.5%) • Stable reported and comparable 176 174 178 182 EBITA development in Q1-Q3 2024 (8.4%) (8.5%) (8.5%) (8.9%) • Stable EBITA margins 174 181 175 175 (8
Slide 13: Well on Track to Reach Our ESG Goals
WELL ON TRACK TO REACH OUR ESG GOALS STATUS Q1-Q3 2024 ENVIRONMENT SOCIAL GOVERNANCE Share of revenue from Reduction in the annual Procurement volume 43% sustainable solutions -3% accident frequency rate 89% covered by assessed and products** (>1 day of absence) y/y suppliers 2025 target: 50% yoy ta
Slide 14: Financial Performance Q1-Q3 2024
02 FINANCIAL PERFORMANCE Q1-Q3 2024 14
Slide 15: EBITDA – Net Income Bridge Q1-Q3 2024
EBITDA – NET INCOME BRIDGE Q1-Q3 2024 in MEUR (632.8)* (509.0)* (-123.8)* (472.7)* (-36.3)* (470.9)* Financial result (-1.8)* Impacted by valuation effects from the change of the consolidation method for (346.1)* (-124.8)* the cyber security JV "Otorio" 10.5%** 8.4%** 7.8%** 7.6%** 5.7%** Tax-Rate R
Slide 16: Net Income – Cash Flow Bridge Q1-Q3 2024
NET INCOME – CASH FLOW BRIDGE Q1-Q3 2024 in MEUR (160.1)* (-39.1)* Split of total depreciation • +127.8 MEUR depreciation (18.0)* • +37.4 MEUR IFRS 3 amortization (124.8)* (-369.8)* (-16.0)* (74.9)* (-149.2)* (346.1)* CF from changes in NWC (-157.7)* • -95.9 ∆ inventories (-82.8)* • -22.5 ∆ adv. pay
Slide 17: Cash Flow Development
CASH FLOW DEVELOPMENT OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW 346 604 300 567 285 538 in MEUR 268 in MEUR • Typical working 227 430 capital fluctuations 206 driven by capital 186 359 business 155 154 296 264 207 • Stable cash flow 84 96 generation reflected 57 69 in mid-term
Slide 18: Financial Position Remains Solid
FINANCIAL POSITION REMAINS SOLID Liquid funds and Net liquidity in MEUR Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR 2,051 Effects on net liquidity 1,838 1,787 1,702 1,772 1,719 • Operating cash flow 1,610 +404 MEUR 1,517 1,507 1,449 1,347 • Dividend payment 1,280 -248 MEUR 1,065 893 9
Slide 19: ROIC Significantly Above WACC
ROIC SIGNIFICANTLY ABOVE WACC Development ROIC vs WACC 25.5% 22.6% 22.9% 20.0% 17.0% 17.2% 16.9% 13.0% 12.3% 10.4% 10.1% 9.4% 9.0% 8.0% 8.6% 8.6% 8.2% 8.3% 6.9% 7.1% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 2024* ROIC WACC Note: Calculation changed from ROCE to ROIC; ROIC as per definition
Slide 20: Key Figures Q3 / Q1-Q3 2024
KEY FIGURES Q3 / Q1-Q3 2024 Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 1,903.1 1,803.5 +6% 5,748.5 6,516.0 -12% 8,551.9 Order backlog (as of end of period) MEUR 9,382.5 10,361.2 -9% 9,382.5 10,361.2 -9% 9,872.6 Revenue MEUR 2,041.5 2,104.1 -3% 6,028.1 6,213.1 -3% 8,660
Slide 21: Update on Business Areas
03 UPDATE ON BUSINESS AREAS 21
Slide 22: Pulp & Paper
PULP & PAPER Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 482.9 598.4 -19% 1,968.2 2,387.4 -18% 3,036.0 REVENUE BY REGION Order backlog (as of end of period) MEUR 2,480.4 3,623.9 -32% 2,480.4 3,623.9 -32% 3,135.8 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 867.3 966.2 -10
Slide 23: Metals
METALS Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 634.1 441.3 44% 1,304.2 1,618.3 -19% 1,997.7 REVENUE BY REGION Order backlog (as of end of period) MEUR 1,973.7 2,201.1 -10% 1,973.7 2,201.1 -10% 2,057.1 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 456.2 456.0 0% 1,350.2
Slide 24: Hydropower
HYDROPOWER Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 447.2 323.8 38% 1,228.9 1,410.4 -13% 2,020.9 REVENUE BY REGION Order backlog (as of end of period) MEUR 3,466.8 3,288.5 5% 3,466.8 3,288.5 5% 3,398.8 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 368.8 362.9 2% 1,032.5
Slide 25: Environment & Energy
ENVIRONMENT & ENERGY Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 338.9 440.0 -23% 1,247.2 1,099.9 13% 1,497.3 REVENUE BY REGION Order backlog (as of end of period) MEUR 1,461.6 1,247.7 17% 1,461.6 1,247.7 17% 1,280.9 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 349.2 319.
Slide 26: Outlook 2024 & Group Targets 2024-2026
04 OUTLOOK 2024 & GROUP TARGETS 2024-2026 26
Slide 27: Outlook 2024
OUTLOOK 2024 Revenue guidance slightly adjusted Market development Project activity is picking up but no quick recovery in markets expected Growing demand for green technologies Growth in Service business Large existing order backlog Revenue guidance 2024 slightly adjusted Slightly decreasing revenu
Slide 28: Group Targets 2024-2026
GROUP TARGETS 2024-2026 • Revenue growth to >10bn revenues • EBITA margin >9% • Net income margin >6% • Continue successful M&A strategy with focus on Service and digitalization • Overachieve ESG targets 28