Andritz Ag · VIE:ANDR
Andritz — H1 2023 Earnings Presentation
29 slides from Andritz's earnings presentation, Jul 27, 2023
Slide 1: Results H1 / Q2 2023
ANDRITZ GROUP RESULTS H1 / Q2 2023 JULY 27, 2023
Slide 2: Agenda
AGENDA 1 Q 2 2 0 2 3 AT A G L AN C E
Slide 3: Very favorable business development continues
VERY FAVORABLE BUSINESS DEVELOPMENT CONTINUES Financial highlights Q2 2023 ORDER INTAKE REVENUE ORDER BACKLOG 2.3 billion EUR 2.1 billion EUR 10.6 billion EUR (Q2 2022: 2.2 billion EUR / +5%) (Q2 2022: 1.8 billion EUR / +20%) (Q2 2022: 9.9 billion EUR / +7%) EBITA (reported) EBITA MARGIN (reported)
Slide 4: Acquisition of Dan-Web strengthens sustainable pulp business
ACQUISITION OF DAN-WEB STRENGTHENS SUSTAINABLE PULP BUSINESS Dan-Web, based in Galten, Denmark, is a leading supplier of a wide range of technologies for the production of airlaid nonwovens. Acquisition further extends and strengthens ANDRITZ’s product and service portfolio in the field of nonwovens
Slide 5: Agenda
AGENDA 2 P E R F O R M AN C E H 1 / Q 2 2 0 2 3
Slide 6: Very satisfying order intake in Q2 2023
VERY SATISFYING ORDER INTAKE IN Q2 2023 Hydro strongly up due to the receipt of a large order; Pulp & Paper and Separation down q/q ORDER INTAKE* ORDER INTAKE BY BUSINESS AREA* ORDER INTAKE BY REGION H1 2023 VS. H1 2022 (%) -1% Q2 2023 Q2 2022 +/- Pulp & Paper 843 953 -12% Metals 508 489 +4% Rest of
Slide 7: Significant increase of revenue
SIGNIFICANT INCREASE OF REVENUE Increase in all four business areas mainly driven by large capital orders REVENUE* REVENUE BY BUSINESS AREA* REVENUE SPLIT: CAPITAL / SERVICE H1 2023 VS. H1 2022 (%) +24% Q2 2023 Q2 2022 +/- Pulp & Paper 1,042 847 +23% 4,109 Metals 470 378 +25% Service Hydro 355 300 +
Slide 8: Stable and recurring service business supports profitability
STABLE AND RECURRING SERVICE BUSINESS SUPPORTS PROFITABILITY Service revenue in H1 2023 and share of total revenue PULP & PAPER METALS ANDRITZ GROUP 24% (25%) 810 MEUR 42% 215 MEUR (H1 22: (46%) (H1 22: 58% 706 MEUR) 183 MEUR) (54%) 76% (75%) 39% Service revenue (40%) 1,595 MEUR (H1 22: 1,342 MEUR)
Slide 9: Order backlog at 10.6 billion euros as of end of Q2 2023
ORDER BACKLOG AT 10.6 BILLION EUROS AS OF END OF Q2 2023 Pulp & Paper and Hydro account for ~70% of total order backlog ORDER BACKLOG BY BUSINESS AREA H1 2023 VS. H1 2022 IN MEUR +7% Separation IN MEUR 10,822 10,408 10,569 9% 9,859 9,977 9,435 (10%) 8,121 8,166 Pulp & Paper 7,724 7,778 7,925 39% 7,2
Slide 10: Earnings significantly increased
EARNINGS SIGNIFICANTLY INCREASED Profitability remains on a solid level EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* EBITA (reported) significantly up q/q. (REPORTED) (ADJUSTED) +22% +25% Profitability in Q2 2023 at 8.1% (Q2 2022: 8.4%) 332.6 335.3 (8.1%) (8.2%) EBITA margin (adjusted) amounted t
Slide 11: Stable operational profitability, Metals improving
STABLE OPERATIONAL PROFITABILITY METALS IMPROVING Reported EBITA margin (in %) PULP & PAPER METALS GROUP 8.4 8.2 8.1 8.1 9.9 9.8 10.0 9.8 4.3 4.8 4.1 4.9 H1 2022 H1 2023 Q2 2022 Q2 2023 H1 2022 H1 2023 Q2 2022 Q2 2023 HYDRO SEPARATION 14.8 12.5 12.6 11.5 4.9 5.0 3.9 3.9 H1 2022 H1 2023 Q2 2022 Q2 20
Slide 12: Stable operational profitability, Metals and Separation improving
STABLE OPERATIONAL PROFITABILITY METALS AND SEPARATION IMPROVING Adjusted EBITA margin (in %) PULP & PAPER METALS GROUP 8.5 8.1 8.2 8.2 10.8 10.4 9.9 9.9 4.3 4.9 4.5 4.8 H1 2022 H1 2023 Q2 2022 Q2 2023 H1 2022 H1 2023 Q2 2022 Q2 2023 HYDRO SEPARATION 11.5 11.5 12.5 10.7 4.7 5.0 4.8 4.0 H1 2022 H1 20
Slide 13: EBITDA – Net income bridge H1 2023
EBITDA – NET INCOME BRIDGE H1 2023 IN MEUR 415.3 (362.2)* TAX RATE: 26.6% 332.6 308.5 301.7 -82.7 (273.2)* (-89.0)* -24.1 (241.5)* -6.8 (223.1)* (-31.7)* (-18.4)* 221.5 -80.2 (163.9)* (-59.2)* 10.1%** 8.1%** 7.5%** 7.3%** 5.4%** * ( ) H1 2022 ** % of total revenue 13 / RESULTS OF THE ANDRITZ GROUP F
Slide 14: Cash flow from operating activities H1 2023
CASH FLOW FROM OPERATING ACTIVITIES H1 2023 IN MEUR Change in NWC: 106.8 ~233 MEUR increase in contract assets (-) (120.7)* ~112 MEUR increase in inventories (-) -28.9 ~73 MEUR decrease in receivables (+) 80.2 ~54 MEUR decrease in liabilities (-) (-64.9)* (59.2)* ~21 MEUR increase in advance payment
Slide 15: Financial position
FINANCIAL POSITION Gross liquidity of ~1.6 billion euros, net liquidity at ~610 million euros Note: Since January 1, 2019, lease liabilities are excluded from the calculation of net liqudity; 2018 adjusted IN MEUR 2.350 Acquisition Xerium: 770 MEUR 2,051 1,963 1,838 1.850 1,772 1,719 Decline in net
Slide 16: Key figures H1 / Q2 2023 at a glance
KEY FIGURES H1 / Q2 2023 AT A GLANCE UNIT Q2 2023 Q2 2022 +/- H1 2023 H1 2022 +/- 2022 Order intake MEUR 2,292 2,179 +5% 4,713 4,768 -1% 9,263 Order backlog (as of end of period) MEUR 10,569 9,859 +7% 10,569 9,859 +7% 9,977 Revenue MEUR 2,146 1,790 +20% 4,109 3,317 +24% 7,543 EBITDA MEUR 214.9 198.8
Slide 17: Agenda
AGENDA 3 U P D AT E O F B U S I N E S S AR E AS
Slide 18: Pulp & Paper: strong increase in revenue and earnings
PULP & PAPER: STRONG INCREASE IN REVENUE AND EARNINGS Order intake declined q/q, mainly due to capital business; profitability at solid level UNIT Q2 2023 Q2 2022 +/- H1 2023 H1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 843 952 -12% 1,836 2,032 -10% 4,296 H1 2023 VS. H1 2022 (%) Order b
Slide 19: Metals: positive earnings and profitability development continued
METALS: POSITIVE EARNINGS AND PROFITABILITY DEVELOPMENT CONTINUED Order intake and revenue significantly higher compared to last year UNIT Q2 2023 Q2 2022 +/- H1 2023 H1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 508 489 +4% 1,177 991 +19% 2,009 H1 2023 VS. H1 2022 (%) Order backlog (as
Slide 20: Green hydrogen market expected to reach almost 40 million tons per year by 2030
GREEN HYDROGEN MARKET EXPECTED TO REACH ALMOST 40 MILLION TONS PER YEAR BY 2030 Source: McKinsey study 2023 20 / RESULTS OF THE ANDRITZ GROUP FOR H1 2023 / JULY 27, 2023
Slide 21: Converting green electricity into hydrogen to sustainable liquefied synthetic methane
CONVERTING GREEN ELECTRICITY INTO HYDROGEN TO SUSTAINABLE LIQUEFIED SYNTHETIC METHANE Koppö Energy, Finland 21 / RESULTS OF THE ANDRITZ GROUP FOR H1 2023 / JULY 27, 2023
Slide 22: Striving to become the leading global green hydrogen solution provider
STRIVING TO BECOME THE LEADING GLOBAL GREEN HYDROGEN SOLUTION PROVIDER Koppö Energia selected ANDRITZ to develop a large-scale hydrogen production plant in Finland • ANDRITZ will perform the Front-End- Expert for large-scale plants: Engineering-Design (FEED) for the model view of an ANDRITZ hydrogen
Slide 23: Hydro: strong increase in order intake and revenue
HYDRO: STRONG INCREASE IN ORDER INTAKE AND REVENUE Earnings improved; solid profitability UNIT Q2 2023 Q2 2022 +/- H1 2023 H1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 657 402 +63% 1,087 1,106 -2% 1,721 H1 2023 VS. H1 2022 (%) Order backlog (as of end of period) MEUR 3,302 3,133 +5% 3,3
Slide 24: ANDRITZ to supply second large hydropower plant in Laos
ANDRITZ TO SUPPLY SECOND LARGE HYDROPOWER PLANT IN LAOS China • Partner in Luang Prabang is Thai construction and power company CH. Karnchang Myanmar Vietnam • With a capacity of 1,470 MW, Luang Prabang will be the largest Laos hydropower plant in Laos and will supply electricity from renewable ener
Slide 25: Separation: favorable business development continued
SEPARATION: FAVORABLE BUSINESS DEVELOPMENT CONTINUED Order intake below the very high level of last year UNIT Q2 2023 Q2 2022 +/- H1 2023 H1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 285 335 -15% 613 640 -4% 1,238 H1 2023 VS. H1 2022 (%) Order backlog (as of end of period) MEUR 993 987
Slide 26: Agenda: Outlook
AGENDA 4 OUTLOOK
Slide 27: Group roadmap 2022-2024 well on track
GROUP ROADMAP 2022-2024 WELL ON TRACK GROUP TARGETS 2022-2024 STATUS H1 2023 Group business volume well above 7 billion EUR, Order intake: 4.7 billion EUR including M&A towards 8 billion EUR Revenue: 4.1 billion EUR EBITA margin at solid 8% 8.1% Net income to increase to >5% 5.4% Continue M&A strate
Slide 28: Market outlook and financial guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Financial guidance 2023 confirmed MARKET OUTLOOK • High interest rates and slow economy will impact project and investment decisions. Demand for green products remains stable. • Economic and geopolitical challenges are closely monitored. FINANCIAL GUIDANCE FOR 2
Slide 29: Results H1 / Q2 2023
ANDRITZ GROUP RESULTS H1 / Q2 2023 JULY 27, 2023