Slide 1: Results for 2020
RESULTS FOR 2020 ANDRITZ GROUP MARCH 3, 2021
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 FY 2020 AT A GLANCE PERFORMANCE FY 2020 AND 02 MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2020 / MARCH 3, 2021 / © ANDRITZ GROUP
Slide 3: FY 2020 at a Glance
FY 2020 AT A GLANCE Revenue reached record level, earnings and profitability up, order intake below last year‘s record • Revenue increased to record high of 6.7 billion euros, driven by execution of large pulp orders • EBITA up to over 390 MEUR due to solid revenue generation combined with cost cont
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 FY 2020 AT A GLANCE PERFORMANCE FY 2020 AND 02 MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2020 / MARCH 3, 2021 / © ANDRITZ GROUP
Slide 5: Group Revenue Reaches New Record High
GROUP REVENUE REACHES NEW RECORD HIGH REVENUE (IN MEUR) REVENUE BY BUSINESS AREA (IN MEUR) 2020 2019 +/- +0.4% • Strong revenue increase in Pulp & Paper 3,339 2,869 +16% Pulp & Paper driven by 6,674 6,700 processing of three large Metals 1,421 1,637 -13% pulp mill orders Hydro 1,296 1,471 -12% • Rev
Slide 6: Service Business Impacted by Travel and Customer Production Restrictions
SERVICE BUSINESS IMPACTED BY TRAVEL AND CUSTOMER PRODUCTION RESTRICTIONS Quarterly development of service revenue (in MEUR) -9% 800 757 2 800 702 671 688 700 651 2 600 560 594 587 576 585 594 600 514 511 482 2 400 437 465 468 465 469 500 428 2 200 400 2 000 300 1 800 200 100 1 600 0 1 400 Q1 16 Q2 1
Slide 7: Service Business by Business Area
SERVICE BUSINESS BY BUSINESS AREA % of total business area revenue PULP & PAPER METALS 48 51 41 42 41 37 24 23 27 24 20 22 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 HYDRO SEPARATION 44 46 47 45 45 48 32 34 25 26 29 28 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 7 /
Slide 8: Increase in EBITA and Profitability
INCREASE IN EBITA AND PROFITABILITY Extraordinary measures for capacity adjustments EBITA (IN MEUR) AND EBITA MARGIN (IN %) +3% 471.1** 456.0** 79.4 7.0%** 6.8%** 112.9 Split of restructuring measures: Total: ~79 MEUR in 2020, thereof +14% EBITA EBITA margin • Metals: ~ -35 MEUR margin 5.8%* • Hydro
Slide 9: Profitability by Business Area
PROFITABILITY BY BUSINESS AREA EBITA margin (in %) PULP & PAPER METALS HYDRO SEPARATION 9.9 9.8** 9.9** 9.5 9.4** 8.7 7.8 7.9** 8.1** 7.2 7.3 7.0** 6.6** 8.3 * 6.0 9.7 * 4.6 4.8 9.4 * 5.8 * 7.5 * 7.2 * 2.9 2.5** 4.8 * 1.7 * 0.5** -0.8** 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 201
Slide 10: Higher Margin Goals for Pulp & Paper and Separation
HIGHER MARGIN GOALS FOR PULP & PAPER AND SEPARATION EBITA margin by business area (in %) PULP & PAPER METALS 9.5 9.9 9.4 9.7 8.7 8.7 7.1 7.2 Long-term 6.0 Long-term goal: goal: 5.2 4.1 4.1 9.0-10.0% 6.0-7.0% NEW 1.7 COMFIRMED 10.0-11.0% 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 201
Slide 11: Order Intake Down Compared to 2019 Record
ORDER INTAKE DOWN COMPARED TO 2019 RECORD Strong decline in Pulp & Paper and Metals, Hydro bottoming out ORDER INTAKE (IN MEUR) ORDER INTAKE BY BUSINESS AREA (IN MEUR) 2020 2019 +/- -16% Pulp & Paper 2,961 3,633 -18% 7,282 Metals 1,144 1,582 -28% 6,108 Hydro 1,335 1,350 -1% Separation 668 717 -7% OR
Slide 12: Quarterly Development of Order Intake
QUARTERLY DEVELOPMENT OF ORDER INTAKE Order intake of last 4 quarters amounted to ~6.1 billion euros • Decline in capital compared to very high level in 2019, which included two large-scale orders • Service impacted by travel restrictions and partial production restraints at customers ORDER INTAKE S
Slide 13: Solid Order Backlog
SOLID ORDER BACKLOG Order backlog at 6.8 billion euros as of end of Q4 2020 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) -13% ORDER BACKLOG BY BUSINESS AREA AS OF 31.12.2020 (IN %) 8,121 7,778 7,925 7,724 7,148 7,076 7,044 7,084 7,261 7,397 7,330 6,789 6,974 6,849 6,651 6,841 6,883 6,774 6,383 6,553
Slide 14: EBITDA – Net Income Bridge
EBITDA – NET INCOME BRIDGE Split of total depreciation: Financial result improved 571.1 • ~168 MEUR depreciation significantly compared to 2019 • thereof Leasing IFRS 16 (~44 MEUR) mainly due • ~11 MEUR Impairment losses • Decrease in interest expenses • thereof property, plant, and equipment (~11 M
Slide 15: Development of Cash Flow from Operating Activities
DEVELOPMENT OF CASH FLOW FROM OPERATING ACTIVITIES Decrease in net working capital Change in Net Working Capital mainly driven by processing of large PP capital orders Split of total depreciation, amortization, and 19.8 657.1 71.3 impairment: (587.2)* • ~179 MEUR depreciation (28.2)* (30.4)* (330.7)
Slide 16: Solid Financial Position
SOLID FINANCIAL POSITION Gross cash of 1.7 billion euros Acquisition of Xerium IN MEUR (~833 MUSD), including net financial Mainly acquisition of liabilities of approximately 590 MUSD Schuler (~600 MEUR) (mainly redemption of bond) 2 350 2,048 1,815 1,772 1 850 1,702 1,719 1,595 1,610 1,517 1,507 1,
Slide 17: Key Figures FY 2020 at a Glance
KEY FIGURES FY 2020 AT A GLANCE UNIT 2020 2019 +/- Order intake MEUR 6,108.0 7,282.0 -16.1% Order backlog (as of end of period) MEUR 6,774.0 7,777.6 -12.9% Revenue MEUR 6,699.6 6,673.9 +0.4% EBITA MEUR 391.7 343.2 +14.1% EBITA (adj. by extraordinary items) MEUR 471.1 456.0 +3.3% Proposal of dividend
Slide 18: Proposed Dividend of 1.00 EUR/Share
PROPOSED DIVIDEND OF 1.00 EUR/SHARE 2020 payout ratio: ~50% - in line with dividend policy DIVIDEND PER SHARE (EUR) 1.50 1.55 1.55 1.35 1.20 1.10 1.00 1.00 * 0.85 0.50 0.55 0.50 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 2018 20
Slide 19: Chapter Overview
CHAPTER OVERVIEW 01 FY 2020 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 19 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2020 / MARCH 3, 2021 / © ANDRITZ GROUP
Slide 20: Pulp & Paper: Strong Revenue Increase, Decline of Order Intake
PULP & PAPER: STRONG REVENUE INCREASE, DECLINE OF ORDER INTAKE Profitability at very favorable level UNIT 2020 2019 +/- Order intake below record level of 2019, which included two large- Order intake MEUR 2,961.1 3,632.5 -18.5% scale pulp mill orders from South America. Decline in service Order back
Slide 21: Metals: Continued Weak Business Development
METALS: CONTINUED WEAK BUSINESS DEVELOPMENT Restructuring measures in Metals Forming Order intake significantly down y/y: UNIT 2020 2019 +/- • very low investment activity by traditional automobile producers not fully compensated by orders Order intake MEUR 1,143.6 1,582.2 -27.7% for equipment to pr
Slide 22: Hydro: Order Intake Bottoming Out, Earnings Target Not Reached Yet
HYDRO: ORDER INTAKE BOTTOMING OUT, EARNINGS TARGET NOT REACHED YET Decline in revenue, lower earnings and profitability UNIT 2020 2019 +/- Order intake bottoming out Order intake MEUR 1,335.4 1,350.2 -1.1% Order backlog (as of end of period) MEUR 2,587.9 2,661.0 -2.7% Decrease in revenue as a result
Slide 23: Separation: Further Improvement of Earnings and Profitability
SEPARATION: FURTHER IMPROVEMENT OF EARNINGS AND PROFITABILITY Decline in order intake and revenue UNIT 2020 2019 +/- Order intake below level of last Order intake MEUR 667.9 717.1 -6.9% year Order backlog (as of end of period) MEUR 413.5 419.6 -1.5% Revenue declined y/y Revenue MEUR 644.1 696.8 -7.6
Slide 24: Chapter Overview
CHAPTER OVERVIEW 01 FY 2020 AT A GLANCE 02 03 04 24 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2020 / MARCH 3, 2021 / © ANDRITZ GROUP
Slide 25: Topics and Market Expectations 2021
TOPICS AND MARKET EXPECTATIONS 2021 ANDRITZ topics: • Proper execution of backlog with special focus on large contracts • Secure appropriate cost structure for 2021 • Concentrate on Metals Forming and Hydro • Expansion of digital channels/tools in Marketing, Sales and Order Execution Market outlook:
Slide 26: Outlook and Guidance
OUTLOOK AND GUIDANCE Financial guidance for 2021: • Due to decline of order intake in 2020, Group revenue expected to be slightly lower vs. 2020 (2020: 6.700 MEUR) • Increase in reported EBITA compared to 2020 (2020: 392 MEUR) • Depending on revenue development, adjusted EBITA approximately stable y
Slide 27: Legal Disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2021 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