Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (March 2025)
36 slides from Andritz's investor presentation, March 2025
Slide 1: Investor Presentation March 2025
ANDRITZ GROUP INVESTOR PRESENTATION MARCH 2025
Slide 2: No challenge is too big – a global pioneer in large-scale green-tech solutions
A N D R I T Z AT A G L A N C E NO CHALLENGE IS TOO BIG – A GLOBAL PIONEER IN LARGE-SCALE GREEN-TECH SOLUTIONS WHAT WE DO Developing large-scale, state-of-the-art engineering and service solutions Elevating customer operations with state-of-the-art technologies Empowering our customers to drive the g
Slide 3: A truly global player, servicing customers worldwide
A N D R I T Z AT A G L A N C E A TRULY GLOBAL PLAYER, SERVICING CUSTOMERS WORLDWIDE REVENUE BY REGION DISTRIBUTION OF EMPLOYEES 2024 Rest of the world Asia (without China) 4% Africa, Australia Asia Europe Rest of ~64% white-collar 28% 31% China 8% 23% Europe ~36% blue-collar 13% South America North
Slide 4: Diversified end markets, high exposure to service and future technologies
A N D R I T Z AT A G L A N C E DIVERSIFIED END MARKETS, HIGH EXPOSURE TO SERVICE AND FUTURE TECHNOLOGIES ANDRITZ GROUP 2024 Order Intake 8,277 MEUR Backlog 9,750 MEUR Revenue 8,314 MEUR EBITA comparable 743 MEUR PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 42%* 22% 18% 18% Revenue 3,461 MEUR
Slide 5: Solid underlying market growth, structural growth drivers & growth opportunities
A N D R I T Z AT A G L A N C E SOLID UNDERLYING MARKET GROWTH, STRUCTURAL GROWTH DRIVERS & GROWTH OPPORTUNITIES ENVIRONMENT PULP & PAPER METALS HYDROPOWER & ENERGY Long-term average 2-3% 2-3% 2-3% 4-5% market growth Global decarbonization trend Paper machines E-mobility & battery Global electrificat
Slide 6: Long-term profitable growth
C O R P O R AT E S T R AT E G Y LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH • Growth in revenue DIGITALIZATION • Growth in profitability • Growth in service share CUSTOMER SERVICE 6
Slide 7: On track to meet 2025 ESG targets – many already achieved
ON TRACK TO MEET 2025 ESG TARGETS – MANY ALREADY ACHIEVED (S t a t u s a t t h e e n d o f 2 0 2 4 ) ENVIRONMENT SOCIAL GOVERNANCE 44% Share of revenue from sustainable solutions 12% Reduction in the annual accident frequency rate 91% Procurement volume covered by assessed and products** (>1 day of
Slide 8: A key enabler of the green transition
D E C A R B O N I Z AT I O N A KEY ENABLER OF THE GREEN TRANSITION • Developing economically feasible key technologies for the green transition • Providing full life cycle services from project development to operation and maintenance • Offering key solutions for: • Carbon capture • Green hydrogen p
Slide 9: Green transition offers many growth opportunities
GREEN PRODUCTS GREEN TRANSITION OFFERS MANY GROWTH OPPORTUNITIES Quotation Construction Operation Green Hydrogen Carbon Capture Textile recycling Battery Bio-Methanol SulfoLoop Synchronous Condensers Cellulosic textile fibers 9
Slide 10: Large addressable markets for new Environment & Energy segment
GREEN PRODUCTS LARGE ADDRESSABLE MARKETS FOR NEW ENVIRONMENT & ENERGY SEGMENT SEPARATION FEED & BIOFUEL PUMPS CLEAN AIR TECHNOLOGIES GREEN HYDROGEN ~6 BEUR* ~2 BEUR* ~5 BEUR* ~2 BEUR* ~3 BEUR* Mechanical & thermal separation Processing solutions and Premium pumping technology for Emission reduction
Slide 11: Redefining the future: unleashing our innovation engine
I N N O V AT I O N REDEFINING THE FUTURE: UNLEASHING OUR INNOVATION ENGINE 140 MEUR 400 6,230 for R&D in 2024 new patent patent applications in 2024 protection rights 11
Slide 12: Increasing focus on life-cycle solutions and services
S E R V I C E S T R AT E G Y INCREASING FOCUS ON LIFE-CYCLE SOLUTIONS AND SERVICES • Servicing our customers at every step of the value chain Retrofits & Upgrades Capital • Quick response time and cost-competitive, efficient Systems life-cycle solutions • Ensuring high product quality, output and up
Slide 13: Proven value creation through strategic acquisitions
M & A S T R AT E G Y PROVEN VALUE CREATION THROUGH STRATEGIC ACQUISITIONS Clear acquisition strategy • Focus on Service, Digitalization & Decarbonization • Complimentary business / technologies in our industries • Retain the management • No acquisitions of competitors • No restructuring cases #82 Su
Slide 14: We expand our portfolio in all business areas
M & A S T R AT E G Y WE EXPAND OUR PORTFOLIO IN ALL BUSINESS AREAS PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 2002 ABB Drying 2013 MeWa 2002 SELAS SAS Furnace Div. 2006 VA TECH HYDRO 2002 3SYS 2003 IDEAS Simulation 2016 SHW CastingTech 2004 Kaiser 2007 Tigép 2003 Fiedler 2003 Acutest Oy 201
Slide 15: Stable development in service and base business
FINANCIALS STABLE DEVELOPMENT IN SERVICE AND BASE BUSINESS Order intake in MEUR 9,263 8,552 8,277 7,880 1.767 924 521 Mid-size capital order intake stable 7,282 and growing with an average growth 1.213 6,646 rate of 3% 1.394 6,108 655 5,580 635 4.148 117 4.143 4.247 Service order intake has consiste
Slide 16: Service business
SERVICE BUSINESS Steadily increasing Service revenue share to an all-time high of 41% DEVELOPMENT OF TOTAL REVENUE (MEUR) VS SERVICE REVENUE (%) REVENUE SPLIT: CAPITAL / SERIVCE FY 2024 8,660 +5% 8,314 7,543 6,674 6,700 6,463 Service Capital 5,889 6,031 41% 59% 39% 38% 41% 39% 36% 40% 33% 35% 2017 2
Slide 17: Service business
SERVICE BUSINESS Strong Service growth to an all-time high of 3,428 MEUR DEVELOPMENT OF SERVICE REVENUES 3.428 3.500 +8% 3.305 2.969 3.000 Service revenue growth 2.589 2.555 2.385 2.500 above Group level 2.084 1.967 2.000 • Increase Service revenue shareEBITA beyond 41% 2024** 1.500 • Capture life c
Slide 18: Order backlog
ORDER BACKLOG Initial recovery of order backlog in Q4 towards 10 BEUR level Pulp & Paper and Hydropower account for ca. 2/3 of total order backlog +4% 10,822 10,569 10,408 10,361 Order backlog in MEUR 9,859 9,977 9,873 10,003 9,709 ORDER BACKLOG BY BUSINESS AREA 9,750 9,435 9,383 IN MEUR FY 2024 VS.
Slide 19: Strong financial position
STRONG FINANCIAL POSITION Changes in Gross liquidity 2024 vs. 2023 Liquid funds and Net liquidity in MEUR • Change in Net Liquidity Acquisition Schuler: Acquisition Xerium: -15 MEUR 600 MEUR 770 MEUR 2,051 - 353 • Repayment of loans -338 MEUR 1,838 1,787 1,772 1,719 Total changes in Gross Liquidity
Slide 20: Cash flow development
CASH FLOW DEVELOPMENT OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW 604 567 574 • Typical working Capital 538 in MEUR in MEUR fluctuations driven by capital business 430 346 359 • Steady improvement of 300 285 cash flow generation 268 264 reflected in three-year 227 233 206 207 rol
Slide 21: ROIC significantly above WACC
ROIC SIGNIFICANTLY ABOVE WACC ROIC significantly above average cost of capital Development ROIC vs WACC 22.6% 22.5% • ROIC at continuously 20.0% high level 17.2% 16.9% • WACC stable compared to 13.0% 12.3% previous year 10.4% 10.1% 9.0% • ROIC significantly above 8.6% 8.6% 8.2% 8.2% 6.9% 7.1% WACC i
Slide 22: Dividend of 2.60 EUR/share
DIVIDEND OF 2.60 EUR/SHARE Increasing dividends with average pay-out ratio above 50% DIVIDEND PER SHARE (EUR) 2,50 2.60 2,10 1,55 1,55 1,65 1,00 0,50 2017 2018 2019 2020 2021 2022 2023 2024 PAYOUT RATIO (%) 70,5 60,1 average payout ratio 48,1 50,3 50,7 48,5 51,8 39,4 Ø 52.4 2017 2018 2019 2020 2021
Slide 23: Guidance 2025 & Mid-term targets 2027
04 GUIDANCE 2025 & MID-TERM TARGETS 2027 23
Slide 24: Guidance 2025
GUIDANCE 2025 Broadly stable revenue and comparable EBITA margin (at mid-point, vs 2024) MARKET OUTLOOK 2025 GUIDANCE 2025 • Project activity is picking up across markets • Existing order backlog, book/bill ratio of 1 Revenue • Growing demand for Green technologies 8.0 - 8.3 BEUR • Growth and strong
Slide 25: Revenue target 2027
REVENUE TARGET 2027 Revenue target 2027 Revenue growth 9 to 10 BEUR CAGR 4.5% 9 to 10 BEUR (to mid-point) Incremental growth • Accelerated growth in Service business 8.3 BEUR • Accelerated demand for Base growth Green Products • Large-scale orders • Growth in Capital sales, expansion of Service shar
Slide 26: Comparable EBITA margin targets 2027
COMPARABLE EBITA MARGIN TARGETS 2027 Comparable EBITA margin target range in % (changed from reported EBITA margin previously) PULP & PAPER Target 11-13% METALS 11.1 11.7 11.1 11.0 10.5 10.0 10.0 9.9 Margin Target 6-8% target 2027 5.1 5.5 4.4 3.7 >9% 2.0 0.5 2.0 2017 2018 2019 2020 2021 2022 2023 20
Slide 27: New mid-term targets 2027
NEW MID-TERM TARGETS 2027 NEW MID-TERM TARGETS 2027 UPDATE OF MID-TERM TARGETS Revenue • Postponement of revenue target from 2026 to 2027 • Reflecting delay in large-scale order awards 9 - 10 BEUR • *Change from reported to comparable EBITA margin Comparable EBITA margin* • Profitability target rema
Slide 28: Key figures Q4 / FY 2024
KEY FIGURES Q4 / FY 2024 UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 2,528.4 2,035.9 24% 8,276.9 8,551.9 -3% Order backlog (as of end of period) MEUR 9,749.9 9,872.6 -1% 9,749.9 9,872.6 -1% Revenue MEUR 2,285.6 2,446.9 -7% 8,313.7 8,660.0 -4% EBITDA MEUR 253.0 277.4 -9% 887.9 910.2 -2%
Slide 29: EBITA development
EBITA DEVELOPMENT Satisfactory EBITA development, stable margins in line with guidance, comparable EBITA margin increased EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) -4% -2% 742 757 743 713 (8.6%) (8.7) (8.9) (8.6%) 233 206 244 233 • Satisfactory EBITA development in FY 2
Slide 30: Net income – cash flow bridge FY 2024
NET INCOME – CASH FLOW BRIDGE FY 2024 in MEUR 226,00 17,100 (225.0)* (-38.6)* (-315.4)* 24,400 Split of total depreciation • +174.9 MEUR depreciation -114,700 (28.8)* 150,00 (-193.4)* 636,500 • +51.1 MEUR IFRS 3 amortization (183.9)* -10,500 -152,300 (375.0)* 496,500 (-19.6)* (504.3)* (-226.2)* 399,
Slide 31: Pulp & Paper
PULP & PAPER UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 811.6 648.6 25% 2,779.8 3,036.0 -8% REVENUE BY REGION Order backlog (as of end of period) MEUR 2,459.1 3,135.8 -22% 2,459.1 3,135.8 -22% FY 2024 VS. FY 2023 (%) Revenue MEUR 855.8 1,112.0 -23% 3,461.1 3,987.4 -13% EBITDA MEUR 128.
Slide 32: Metals
METALS UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 403.0 379.4 6% 1,707.2 1,997.7 -15% REVENUE BY REGION Order backlog (as of end of period) MEUR 1,965.3 2,057.1 -4% 1,965.3 2,057.1 -4% FY 2024 VS. FY 2023 (%) Revenue MEUR 461.0 491.4 -6% 1,811.2 1,839.6 -2% EBITDA MEUR 16.0 37.5 -57% 1
Slide 33: Hydropower
HYDROPOWER UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 941.6 610.5 54% 2,170.5 2,020.9 7% REVENUE BY REGION Order backlog (as of end of period) MEUR 3,933.7 3,398.8 16% 3,933.7 3,398.8 16% FY 2024 VS. FY 2023 (%) Revenue MEUR 505.4 448.3 13% 1,537.9 1,521.7 1% EBITDA MEUR 44.9 40.9 10%
Slide 34: Environment & Energy
ENVIRONMENT & ENERGY UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 372.2 397.4 -6% 1,619.4 1,497.3 8% REVENUE BY REGION Order backlog (as of end of period) MEUR 1,391.8 1,280.9 9% 1,391.8 1,280.9 9% FY 2024 VS. FY 2023 (%) Revenue MEUR 463.4 395.2 17% 1,503.5 1,311.3 15% EBITDA MEUR 64.1
Slide 35: Legal disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2025 This presentation contains forward-looking statements, which include statements about future events, future financial performance, plans, strategies, expectations, prospects, regulatory changes, and changes in customer investment activity. Such statements may be id
Slide 36: Creating growth that matters
CREATING GROWTH THAT MATTERS