Slide 1: ANDRITZ Group Results H1 2024
ANDRITZ GROUP RESULTS H1 2024 JULY 25, 2024
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2024 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 c
Slide 3: Agenda: CEO Messages & Q2/H1 Highlights
AGENDA 1 C E O M E S S AG E S & Q 2 / H 1 H I G H L I G H T S 3
Slide 4: Stable development despite challenging environment, guidance for 2024 confirmed
STABLE DEVELOPMENT DESPITE CHALLENGING ENVIRONMENT, GUIDANCE FOR 2024 CONFIRMED • Order intake in H1 dropped significantly yoy • Continued absence of large capital investments in Pulp & Paper and Metals • Continued strong growth trend in Green Products leading to significant increase in order intake
Slide 5: Stable development despite challenging environment, guidance for 2024 confirmed
STABLE DEVELOPMENT DESPITE CHALLENGING ENVIRONMENT, GUIDANCE FOR 2024 CONFIRMED • Stable EBITA and slight increase in profitability • Improved mix (growth in Service and Green Products) • Solid project execution • Stable net income and increased net income margin • Successful financing round for cyb
Slide 6: Major financial KPIs H1 2024
STABLE DEVELOPMENT DESPITE CHALLENGING ENVIRONMENT, GUIDANCE CONFIRMED Major financial KPIs H1 2024 ORDER INTAKE REVENUE ORDER BACKLOG 3.8 billion EUR 4.0 billion EUR 9.7 billion EUR (H1 2023: 4.7 billion EUR | -18%) (H1 2023: 4.1 billion EUR | -3%) (H1 2023: 10.6 billion EUR | -8.1%) NET INCOME EBI
Slide 7: Major financial KPIs Q2 2024
STABLE DEVELOPMENT DESPITE CHALLENGING ENVIRONMENT, GUIDANCE CONFIRMED Major financial KPIs Q2 2024 ORDER INTAKE REVENUE ORDER BACKLOG 1.9 billion EUR 2.1 billion EUR 9.7 billion EUR (Q2 2023: 2.3 billion EUR | -17%) (Q2 2023: 2.1 billion EUR | -2%) (Q2 2023: 10.6 billion EUR / -8%) NET INCOME EBITA
Slide 8: ANDRITZ acquires machine vision specialist Procemex
ANDRITZ ACQUIRES MACHINE VISION SPECIALIST PROCEMEX • Procemex is global leader in integrated web monitoring and web inspection solutions for the pulp and paper industry. • Strengthening ANDRITZ Automation and Digitalization portfolio, Guidance Procemex’s smart camera-based solutions help customers
Slide 9: Well on track to reach 2025 ESG goals
WELL ON TRACK TO REACH 2025 ESG GOALS; STATUS AT THE END OF 2023 ENVIRONMENT SOCIAL GOVERNANCE 45% Share of revenue from sustainable solutions 7% Reduction in the annual accident frequency rate 90% Procurement volume covered by assessed and products (>1 day of absence) yoy suppliers 2025 target: 50%
Slide 10: Agenda: Q2/H1 Performance in Detail
AGENDA 2 Q 2 / H 1 2 0 2 4 P E R F O R M AN C E I N D E TAI L 10
Slide 11: Order intake well below Q2 2023 but stable compared to Q1 2024
ORDER INTAKE WELL BELOW Q2 2023 BUT REMAINED STABLE COMPARED TO Q1 2024 ORDER INTAKE (in MEUR) ORDER INTAKE (in MEUR) ORDER INTAKE BY REGION H1 2024 VS. H1 2023 (%) -18% Q2 2024 Q2 2023 +/- Pulp & Paper 843 821 +3% Metals 321 508 -37% 4,713 Hydropower 284 657 -57% 3,845 Environment & Energy 447 307
Slide 12: Stable revenue despite ongoing challenging market environment
STABLE REVENUE DESPITE ONGOING CHALLENGING MARKET ENVIRONMENT REVENUE (in MEUR) REVENUE (in MEUR) REVENUE SPLIT: CAPITAL / SERVICE H1 2024 VS. H1 2023 (%) Q2 2024 Q2 2023 +/- Pulp & Paper 906 1,022 -11% -3% Metals 455 470 -3% Hydropower 361 355 +2% 4,109 3,987 Environment & Energy 379 299 +27% Servi
Slide 13: Stable earnings development in H1 2024
STABLE EARNINGS DEVELOPMENT IN H1 2024 EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) 0% -2% 333 333 335 329 (8.1%) (8.4%) (8.2%) (8.2%) • Stable EBITA development • Increased EBITA margin from 174 181 175 improved mix and strong project 175 (8.1%) (8.6%) (8.2%) (8.3%) execu
Slide 14: Order backlog still on satisfactory level
ORDER BACKLOG STILL ON SATISFACTORY LEVEL Pulp & Paper and Hydropower account for 66% of total order backlog -3% 10,822 10,569 ORDER BACKLOG BY BUSINESS AREA 10,408 10,361 Order backlog in MEUR H1 2024 VS FY 2023 9,859 9,977 9,873 10,003 9,709 9,435 IN MEUR 8,166 7,925 Environment & 7,397 7,330 7,40
Slide 15: EBITDA – Net income bridge H1 2024
EBITDA – NET INCOME BRIDGE H1 2024 IN MEUR (415.3)* (332.6)* (-82.7)* (308.5)* (-24.1)* (301.7)* Financial result (-6.8)* Impacted by valuation effects from the change of the consolidation method for (221.5)* (-80.2)* the cyber security JV "Otorio" 10.6%** 8.4%** 7.8%** 7.5%** 5.6%** Tax-Rate Reduce
Slide 16: Net income – Cash flow bridge H1 2024
NET INCOME – CASH FLOW BRIDGE H1 2024 Strong development of operating and free cash flow compared to last year due to favorable NWC development and reduced tax payments IN MEUR Split of total depreciation • +90.4 MEUR depreciation (106.8)* * • +23.8 MEUR IFRS 3 amortization (-59.8)* (17.4)* (-332.7)
Slide 17: Cash flow development
CASH FLOW DEVELOPMENT Q2 cash flow impacted by NWC increase in Q2 compared to Q1 OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW IN MEUR 604 567 538 430 359 346 296 300 285 264 268 227 207 206 186 155 154 69 84 57 43 31 29 23 2016 2017 2018 2019 2020 2021 2022 2023 -31 -48 Q1 Q2 Q3 Q
Slide 18: Financial position remains solid
FINANCIAL POSITION REMAINS SOLID Sufficient gross liquidity despite dividend payment in Q1 and loan repayment in Q2 Liquid funds and Net liquidity in MEUR Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR 2,051 Effects on net liquidity 1,838 1,702 1,772 1,719 1,787 • Operating cash flow 1,5
Slide 19: Key figures Q2/H1 2024
KEY FIGURES Q2 / H1 2024 Q2 Q2 H1 H1 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 1,895.1 2,292.3 -17% 3,845.4 4,712.5 -18% 8,551.9 Order backlog (as of end of period) MEUR 9,709.1 10,569.0 -8% 9,709.1 10,569.0 -8% 9,872.6 Revenue MEUR 2,100.2 2,146.4 -2% 3,986.6 4,109.0 -3% 8,660.0 • Ord
Slide 20: Agenda: Update on Business Areas
AGENDA 3 U P D AT E O N B U S I N E S S AR E AS 20
Slide 21: Pulp & Paper: order pick-up in Q2, profitability remained at high level
PULP & PAPER: ORDER PICK-UP IN Q2, PROFITABILITY REMAINED AT HIGH LEVEL UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 842.8 820.6 +3% 1,485.3 1,789.0 -17% 3,036.0 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 2,889.5 3,954.2 -27% 2,889.5 3,9
Slide 22: Metals: decline in order intake, stable revenue based on existing backlog
METALS: DECLINE IN ORDER INTAKE, STABLE REVENUE BASED ON EXISTING BACKLOG UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 321.0 507.7 -37% 670.1 1,177.0 -43% 1,997.7 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 1,842.4 2,195.1 -16% 1,842.4 2,
Slide 23: Hydropower: strong increase in profitability
HYDROPOWER: STRONG INCREASE IN PROFITABLITLY UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 284.1 657.3 -57% 781.7 1,086.6 -28% 2,020.9 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 3,473.2 3,302.3 +5% 3,473.2 3,302.3 +5% 3,398.8 Revenue MEUR
Slide 24: Environment & Energy: satisfied development across all areas
ENVIRONMENT & ENERGY: SATISFIED DEVELOPMENT ACROSS ALL AREAS UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 447.2 306.7 +46% 908.3 659.9 +38% 1,497.3 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 1,504.0 1,117.4 +35% 1,504.0 1,117.4 +35% 1,28
Slide 25: Agenda: Outlook & Group Targets 2024-2026
AGENDA 4 O U T L O O K 2 0 2 4 & G R O U P TAR G E T S 2 0 2 4 - 2 0 2 6 25
Slide 26: Outlook 2024
OUTLOOK 2024 Guidance confirmed: Stable revenues and profitability in FY 2024 MARKET DEVELOPMENT • No quick recovery of the markets expected • Project activity picking up in several markets GUIDANCE 2024 CONFIRMED • Satisfactory performance in H1, existing order backlog • Strong growth in Service bu
Slide 27: Group targets 2024-2026
GROUP TARGETS 2024-2026 • Ongoing revenue growth to >10bn revenues • EBITA margin to increase to >9% • Net income to increase to >6% • Continue successful M&A strategy with focus on Service and digitalization • Overachieve ESG targets 27