Slide 1: ANDRITZ GROUP: results for 2016
ANDRITZ GROUP: results for 2016 March 3, 2017
Slide 2: Group sales below record level of last year
Group sales below record level of last year Project-related decrease in all business areas SALES (MEUR) SALES by business area (MEUR) 2016 2015 +/- -5% HYDRO 1,752 1,835 -5% PULP & PAPER 2,094 2,196 -5% 6,377 6,039 METALS 1,598 1,718 -7% SEPARATION 594 628 -5% SALES by region (%) 2016 2015 Well-bala
Slide 3: Very favorable development of service business
Very favorable development of service business Increase in all four business areas Continue to grow service business to provide added-value for customers. Launch of new service products. Focus on IIoT: eShop, OPP, etc. Share of service sales of Group and business area sales (%) 2016 2015 ANDRI
Slide 4: Group order intake below level of last year
Group order intake below level of last year Decline mainly attributable to HYDRO and PULP & PAPER ORDER INTAKE (MEUR) ORDER INTAKE by business area (MEUR) 2016 2015 +/- -7% HYDRO 1,500 1,719 -13% PULP & PAPER 1,919 2,264 -15% 6,018 METALS 1,552 1,439 +8% 5,569 SEPARATION 598 597 +0% ORDER INTAKE by
Slide 5: Group order backlog declined due to HYDRO and PULP & PAPER
Group order backlog declined due to HYDRO and PULP & PAPER Order backlog (as of end of period in MEUR) -7% 7,389 7,511 7,324 6,683 6,615 6,789 2011 2012 2013 2014 2015 2016 Order backlog by business area (as of end of period in MEUR) HYDRO and PULP & PAPER account for 75% of total backlog 2016 2015
Slide 6: Earnings and profitability up despite decrease in sales
Earnings and profitability up despite decrease in sales, driven by service business and METALS EBITA (MEUR) EBITA, at 442.1 MEUR, up by 3.1% versus 2015 (429.0 MEUR). +3% 442.1 EBITA margin increased to 7.3% (2015: 6.7%), mainly due to very favorable 429.0 development of the service business as
Slide 7: Key figures 2016 at a glance
Key figures 2016 at a glance Unit 2016 2015 +/- Order intake MEUR 5,568.8 6,017.7 -7.5% Order backlog (as of end of period) MEUR 6,789.2 7,324.2 -7.3% Sales MEUR 6,039.0 6,377.2 -5.3% EBITDA MEUR 542.4 534.7 +1.4% EBITA MEUR 442.1 429.0 +3.1% EBIT MEUR 385.8 369.1 +4.5% EBT MEUR 398.4 376.4 +5.8% Fi
Slide 8: Proposed dividend of 1.50 EUR/share
Proposed dividend of 1.50 EUR/share Increase in payout ratio in line with dividend policy DIVIDEND per share (EUR) 1.50* 1.35 1.20 1.10 1.00 0.85 0.50 0.55 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 * Proposal to AGM Confirmation of
Slide 9: HYDRO (1): Continued slow market conditions in 2016
HYDRO (1) Continued slow market conditions in 2016 Modernizations/rehabilitations New hydropower plants Subdued project activity due to Some new projects in unchanged low electricity and energy advanced planning phase, prices, especially in Europe however awards only expected in the medium term Comp
Slide 10: HYDRO (2): Decrease in order intake, sales, earnings, and profitability
HYDRO (2) Decrease in order intake, sales, earnings, and profitability HYDRO Unit 2016 2015 +/- Decrease of order intake in Order intake MEUR 1,500.3 1,718.7 -12.7% line with market Order backlog (as of end of period) MEUR 3,269.6 3,640.9 -10.2% Sales MEUR 1,752.4 1,834.8 -4.5% EBITDA MEUR 167.2 183
Slide 11: PULP & PAPER (1): Satisfactory project and investment activity
PULP & PAPER (1) Satisfactory project and investment activity Modernization and greenfield Satisfactory project and investment activity, particularly for modernization and refurbishment projects Competition Stable competitive environment ▲ The new pulp mill in Ortigueira is the largest investment ev
Slide 12: PULP & PAPER (2): Very favorable business development
PULP & PAPER (2) Very favorable business development PULP & PAPER Unit 2016 2015 +/- Order intake significantly below the extraordinary high Order intake MEUR 1,919.5 2,263.9 -15.2% level in 2015 which included a large order Order backlog (as of end of period) MEUR 1,803.3 1,998.6 -9.8% Sales MEUR 2
Slide 13: METALS (1): Satisfactory metal forming market
METALS (1): Satisfactory metal forming market Slow market for carbon/stainless Metal forming Carbon steel / Stainless steel Satisfactory project activity; some Unchanged low project activity, medium-sized order awards by car only selective investments in manufacturers and suppliers; stable emerging
Slide 14: METALS (2): Satisfactory business development
METALS (2) Satisfactory business development METALS Unit 2016 2015 +/- Order intake up due to Schuler (including first-time Order intake MEUR 1,551.5 1,438.6 +7.8% consolidation of Schuler and Yadon) Order backlog (as of end of period) MEUR 1,369.0 1,332.5 +2.7% Sales MEUR 1,598.4 1,718.1 -7.0% EBIT
Slide 15: SEPARATION (1): Mixed development of markets
SEPARATION (1) Mixed development of markets Municipal Investment activity at reasonable Feed and biomass pelleting levels, mainly in developed markets Solid project activity Industrial Reasonable demand in chemicals; low project activity in food and Competition mining/minerals Very fragmented market
Slide 16: SEPARATION (2): Unchanged weak business development
SEPARATION (2) Unchanged weak business development SEPARATION Unit 2016 2015 +/- Order intake in 2016 practically unchanged compared to last yearʼs Order intake MEUR 597.5 596.5 +0.2% reference period Order backlog (as of end of period) MEUR 347.3 352.2 -1.4% Sales MEUR 593.8 628.0 -5.4% EBITDA MEUR
Slide 17: Outlook for 2017: Investment activity expected to remain at last years' levels
Outlook for 2017 Investment activity expected to remain at last years‘ levels Project activity for Continued good project Unchanged slow market Low project activity in modernizations and new activity for pulp as well for stainless steel mining to remain; hydropower stations to as for packaging / tis