Slide 1: Results for Q3 / Q1-Q3 2018
RESULTS FOR Q3 / Q1-Q3 2018 ANDRITZ GROUP NOVEMBER 6, 2018
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2018 AT A GLANCE 02 PERFORMANCE Q3 2018 AND MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2018 / NOVEMBER 6, 2018 / © ANDRITZ GROUP
Slide 3: Q3 2018 at a Glance
Q3 2018 AT A GLANCE Mixed business development by business area. • Satisfactory development of Group order intake, reaching almost EUR 1.5 billion: favorable development of order intake in Pulp & Paper and Metals (Metals Processing); low order intake in Hydro. • Sales increased to over EUR 1.4 billi
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2018 AT A GLANCE 02 PERFORMANCE Q3 2018 AND MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2018 / NOVEMBER 6, 2018 / © ANDRITZ GROUP
Slide 5: Satisfactory Order Intake in Q3 2018
SATISFACTORY ORDER INTAKE IN Q3 2018 Aggregated order intake of the last four quarters amounts to ~6.2 bn. EUR. ORDER INTAKE Q1-Q3 2018 BY REGION MEUR MEUR (IN %) +10% 2,500 2,250 6,500 2,000 1,737 Emerging 1,431 1,470 1,532 1,560 1,467 1,533 1,469 6,000 markets: 47% 1,247 1,319 1,211 1,341 6% 1,500
Slide 6: Capital Sales
CAPITAL SALES Quarterly development of capital sales (in MEUR). +3% 1,400 4,600 1,230 1,240 1,200 1,140 1,114 1,152 1,011 1,010 4,400 1,001 958 1,000 922 911 895 863 926 848 4,200 800 4,000 600 3,800 400 200 3,600 0 3,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18
Slide 7: Increase of Service Business
INCREASE OF SERVICE BUSINESS Quarterly development of service sales (in MEUR). +9% 700 2,200 594 600 558 560 482 514 511 500 461 470 437 465 468 465 469 2,000 403 428 400 1,800 300 200 1,600 100 0 1,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Service
Slide 8: Group Order Backlog Up Compared to End of 2017
GROUP ORDER BACKLOG UP COMPARED TO END OF 2017 DUE TO RISING ORDER INTAKE TREND ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) ORDER BACKLOG Q1-Q3 2018 +8% BY BUSINESS AREA 7,786 (IN %) 7,349 7,324 7,148 7,076 7,044 6,892 6,789 6,974 6,849 6,651 6,841 6,883 6,383 6,553 7% 23% 39% 31% Q1 15 Q2 15 Q3 15
Slide 9: Earnings in Q3 2018 Down Compared to Previous Year
EARNINGS IN Q3 2018 DOWN COMPARED TO REFERENCE FIGURE OF PREVIOUS YEAR Satisfactory development of Pulp & Paper, Metals still unsatisfactory. EBITA AND EBITA MARGIN Q3 2018 (IN MEUR) EBITA AND EBITA MARGIN Q1-Q3 2018 (IN MEUR) Q3 2018: -13% -18% 98.9 • EBITA, at 85.9 MEUR, down by 13% compared to th
Slide 10: Earnings and Profitability by Business Area
EARNINGS AND PROFITABILITY BY BUSINESS AREA EBITA (MEUR) and EBITA margin (%). HYDRO PULP & PAPER METALS SEPARATION Including positive one-off effect of 136.7 ~25 MEUR 129.7 9.0% 8.8% 84.0 73.3 65.3 7.1% 6.8% 6.0% 29.4 5.1%* 19.2 20.8 2.6% 4.7% 4.6% Q1-Q3 2017 Q1-Q3 2018 Q1-Q3 2017 Q1-Q3 2018 Q1-Q3
Slide 11: Key Figures Q3/Q1-Q3 2018 at a Glance
KEY FIGURES Q3/Q1-Q3 2018 AT A GLANCE Decrease mainly due to lower UNIT Q1-Q3 2018 Q1-Q3 2017 +/- Q3 2018 Q3 2017 +/- 2017 interest result: Order intake MEUR 4,738.0 4,112.5 +15.2% 1,468.7 1,341.2 +9.5% 5,579.5 • lower average net liquidity, • substantially lower interest Order backlog (as of end of
Slide 12: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2018 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 12 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2018 / NOVEMBER 6, 2018 / © ANDRITZ GROUP
Slide 13: Hydro (1): Unchanged Moderate Market Environment
HYDRO (1): UNCHANGED MODERATE MARKET ENVIRONMENT Selective award of individual projects, particularly in Asia. ANDRITZ will modernize the largest hydropower plant in • New hydropower plants Central Asia. Some new projects in emerging markets, especially in Southeast Asia and Africa, are currently in
Slide 14: Hydro (2): Subdued Business Development
HYDRO (2): SUBDUED BUSINESS DEVELOPMENT Despite increase in sales, earnings and profitability down. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Order intake significantly Order intake MEUR 1,056.2 939.0 +12.5% 303.1 425.0 -28.7% 1,317.2 lower than in Q3 2017, which included some medium-s
Slide 15: Pulp & Paper (1): Good Market Environment
PULP & PAPER (1): GOOD MARKET ENVIRONMENT • Pulp ANDRITZ fiberline delivered to Fibria, for the pulp mill Horizonte 2 in Três Lagoas, Brazil. Good project activity, particularly for modernization of existing pulp mills. ANDRITZ received major order from Arauco for their MAPA project in early October
Slide 16: Pulp & Paper (2): Favorable Development of Order Intake
PULP & PAPER (2): FAVORABLE DEVELOPMENT OF ORDER INTAKE Earnings and profitability at satisfactory level. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Order intake favorably up, Order intake MEUR 1,726.4 1,552.0 +11.2% 545.5 427.1 +27.7% 2,033.4 both for the capital and service business.
Slide 17: Metals (1): Satisfactory Project and Investment Activity
METALS (1): SATISFACTORY PROJECT AND INVESTMENT ACTIVITY Good market environment in Metals Processing; solid market environment in Metal Forming. • Metal Forming Satisfactory project and investment activity; some individual orders were awarded selectively by international car manufacturers and their
Slide 18: Metals (2): Unsatisfactory Business Development
METALS (2): UNSATISFACTORY BUSINESS DEVELOPMENT Cost overruns on some projects and execution of some lower-margin orders. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Significant increase in order Order intake MEUR 1,403.3 1,143.6 +22.7% 456.6 329.4 +38.6% 1,606.5 intake mainly due to Met
Slide 19: Separation (1): Good Project and Investment Activity Continued
SEPARATION (1): GOOD PROJECT AND INVESTMENT ACTIVITY CONTINUED Mainly for solid/liquid separation equipment. ANDRITZ ArtBREW, plug-and-play craft beer • Municipal clarification solution for breweries. Investment activity at unchanged good levels (sewage sludge dewatering and drying). • Industrial Go
Slide 20: Separation (2): Increase in Order Intake and Sales
SEPARATION (2): INCREASE IN ORDER INTAKE AND SALES High order intake in Q1-Q3 2018. Q1-Q3 Q1-Q3 Q3 Q3 UNIT +/- +/- 2017 2018 2017 2018 2017 Order intake in Q1-Q3 Order intake MEUR 552.1 477.9 +15.5% 163.5 159.7 +2.4% 622.4 2018 strongly up. Order backlog (as of end of period) MEUR 460.1 410.2 +12.2%
Slide 21: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2018 AT A GLANCE 02 03 04 21 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2018 / NOVEMBER 6, 2018 / © ANDRITZ GROUP
Slide 22: Outlook for Remainder of 2018 Unchanged
OUTLOOK FOR REMAINDER OF 2018 UNCHANGED Unchanged guidance for 2018: flat sales, solid profitability (excluding one-offs) • For 2018, ANDRITZ expects stable sales compared to 2017. • Earnings and profitability will be significantly lower due to provisions of well above EUR 20 million, made for capac
Slide 23: Disclaimer
DISCLAIMER This presentation contains valuable, proprietary property belonging to ANDRITZ AG or its affiliates (“the ANDRITZ GROUP”), and 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 con