Andritz Ag · VIE:ANDR
Andritz — Q1 2024 Earnings Presentation
28 slides from Andritz's earnings presentation, Apr 25, 2024
Slide 1: Andritz Group Results Q1 2024
ANDRITZ GROUP RESULTS Q1 2024 APRIL 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”), an d no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales
Slide 3: Agenda: Q1 2024 at a glance
AGENDA 1 Q 1 2 0 2 4 AT A G L AN C E
Slide 4: Stable Q1 2024 results despite challenging macro environment
STABLE Q1 2024 RESULTS DESPITE CHALLENGING MACRO ENVIRONMENT • Overall order intake declined compared to high levels of last year; satisfactory volume in weak markets • Increase in order intake for green technologies (Environment & Energy and Hydropower) • Stable revenues • Profitability remained st
Slide 5: Major financial KPIs Q1 2024
STABLE Q1 2024 RESULTS DESPITE CHALLENGING ENVIRONMENT Major financial KPIs Q1 2024 ORDER INTAKE REVENUE ORDER BACKLOG 2.0 billion EUR 1.9 billion EUR 10.0 billion EUR (Q1 2023: 10.4 billion EUR / -4%) (Q1 2023: 2.4 billion EUR / -19%) (Q1 2023: 2.0 billion EUR / -4%) NET INCOME EBITA (reported) EBI
Slide 6: 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 Share of revenue from Procurement volume 45% sustainable solutions 7% Reduction in the annual accident frequency rate 90% covered by assessed and products (>1 day of absence) y/y suppliers 2025 target: 50%
Slide 7: Investment in green hydrogen
INVESTMENT IN GREEN HYDROGEN Further strengthening our strongly growing Environment & Energy platform • ANDRITZ acquired a 13.8% stake in Norwegian tech- company HydrogenPro • Building on an already existing and successful partnership • HydrogenPro provides pressurized alkaline Guidance electrolyzer
Slide 8: Agenda: Performance Q1
AGENDA 2 P E R F O R M AN C E Q 1 2 0 2 4
Slide 9: Order intake satisfactory given challenging macro environment
ORDER INTAKE SATISFACTORY GIVEN THE OVERALL CHALLENGING MACRO ENVIRONMENT ORDER INTAKE* ORDER INTAKE BY BUSINESS AREA* ORDER INTAKE BY REGION Q1 2024 VS. Q1 2023 (%) -19% Q1 2024 Q1 2023 +/- 2,420 Pulp & Paper 642.5 968.4 -34% Emerging Europe / Metals 349.1 669.3 -48% markets North America 1,950 45%
Slide 10: Stable revenue development
STABLE REVENUE DEVELOPMENT REVENUE* REVENUE BY BUSINESS AREA* REVENUE BY REGION Q1 2024 VS. Q1 2023 (%) -4% Q1 2024 Q1 2023 +/- 1,963 1,886 Pulp & Paper 832.3 887.3 -6% Emerging Europe / Metals 439.5 421.8 +4% markets North America Hydropower 302.3 355.6 -15% 42% (48%) 58% (52%) Environment & Energy
Slide 11: Order backlog slightly increased
ORDER BACKLOG SLIGHTLY INCREASED Pulp & Paper and Hydropower account for 66% of total order backlog ORDER BACKLOG BY BUSINESS AREA +1% AS OF END OF MARCH 2024 10,569 (DECEMBER 2023) 10,822 10,408 10,361 Order backlog in MEUR 9,859 9,977 9,873 10,003 9,435 Environment & IN MEUR Energy 8,121 8,166 Pul
Slide 12: Earnings and profitability remained stable
EARNINGS AND PROFITABILTY REMAINED STABLE EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) -3.8% -4.2% 158.5 152.4 160.3 153.5 • Earnings proved stable (8.1) (8.2) (8.1) (8.1) • EBITA declined only slightly in line with revenue • Profitability (EBITA margin) remained stable at
Slide 13: Stable earnings development
STABLE EARNINGS DEVELOPMENT EBITA reported (Comparable EBITA) in MEUR PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY -5.7% 88.3 (88.8) 83.3 (84.0) +6.4% +8.9% 29.7 31.6 -22.1% (31.6) (29.7) 19.2 20.9 21.3 (20.4) (22.5) (21.4) 16.6 (15.4) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q
Slide 14: Profitability remained stable
PROFITABILITY REMAINED STABLE EBITA margin (Comparable EBITA margin) in % PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 10.0% 10.0% 10.0% 10.1% (10.0%) (10.1%) (10.0%) (10.1%) 6.0% 5.5% 4.8% (6.0%) 4.6% (5.1%) (4.8%) (5.1%) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 14 / A
Slide 15: EBITDA – Net income bridge Q1 2024
EBITDA – NET INCOME BRIDGE Q1 2024 IN MEUR TAX RATE: ~25.5% (200.4*) (~25.6%*) (158.5*) (-41.9*) (146.0*) (137.7*) (-12.5*) (-8.3*) (102.5*) (-35.2*) 10.3%** 8.1%** 7.4%** 7.4%** 5.5%** EBITDA Depreciation EBITA IFRS 3 Amortization EBIT Financial result EBT Income taxes Net income * ( ) Q1 2023 ** %
Slide 16: Net income – cash flow bridge Q1 2024
NET INCOME – CASH FLOW BRIDGE Q1 2024 Strong development of operating and free cash flow driven by positive working capital development Change in NWC: IN MEUR + 45.9 MEUR increase in inventories + 23.6 MEUR increase in advance payments made - 133.2 MEUR decrease in acc. Receivables - 140.4 MEUR decr
Slide 17: Cash flow development
CASH FLOW DEVELOPMENT Strong development of operating and free cash flow driven by positive working capital development IN MEUR OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW 604 567 538 430 > +100% 359 346 296 300 285 264 268 227 207 206 186 155 154 69 84 57 43 31 29 2016 2017 2018
Slide 18: Financial position remains solid
FINANCIAL POSITION REMAINS SOLID Despite dividend payment in Q1, increase in liquidity due to significant decrease in ONWC Liquid funds and Net liquidity in MEUR 2,350 Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR 2,051 1,838 1,856 1,850 1,772 1,787 1,702 1,719 1,517 1,507 1,610 • Divid
Slide 19: Key figures Q1 2024
KEY FIGURES Q1 2024 UNIT Q1 2024 Q1 2023 +/- Order intake MEUR 1,950.3 2,420.3 -19% Order backlog (as of end of period) MEUR 10,002.7 10,407.8 -4% Revenue MEUR 1,886.4 1,962.6 -4% EBITDA MEUR 194.0 200.4 -3% • Order intake declined due to EBITDA margin % 10.3 10.2 - weak markets EBITA MEUR 152.4 158
Slide 20: Change in reporting structure
CHANGE IN REPORTING STRUCTURE Continued adjustment of ANDRITZ product portfolio according to markets and business model The Green Hydrogen Division and Clean Air Technologies Division are reported in the Environment & Energy Business Area as of January 1, 2024. Order intake Revenue EBITA Business Ar
Slide 21: 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
Slide 22: Pulp & Paper: strong decline in order intake, profitability high
PULP & PAPER: STRONG DECLINE IN ORDER INTAKE, PROFITABILITY REMAINED AT HIGH LEVEL UNIT Q1 2024 Q1 2023 +/- REVENUE BY REGION Order intake MEUR 642.5 968.4 -34% Q1 2023 VS. Q1 2024 (%) Order backlog (as of end of period) MEUR 2,975.0 4,151.1 -28% Revenue MEUR 832.3 887.3 -6% Emerging Europe / market
Slide 23: Metals: decline in order intake, increase in revenues and earnings
METALS: STRONG DECLINE IN ORDER INTAKE, INCREASE IN REVENUES AND EARNINGS UNIT Q1 2024 Q1 2023 +/- REVENUE BY REGION Order intake MEUR 349.1 669.3 -48% Q1 2023 VS. Q1 2024 (%) Order backlog (as of end of period) MEUR 1,977.3 2,167.7 -9% Revenue MEUR 439.5 421.8 +4% Emerging Europe / markets North Am
Slide 24: Hydropower: strong increase in order intake
HYDROPOWER: STRONG INCREASE IN ORDER INTAKE UNIT Q1 2024 Q1 2023 +/- REVENUE BY REGION Order intake MEUR 497.6 429.3 +16% Q1 2023 VS. Q1 2024 (%) Order backlog (as of end of period) MEUR 3,615.3 2,963.6 +22% Revenue MEUR 302.3 355.6 -15% Emerging Europe / markets North America EBITDA MEUR 22.6 28.1
Slide 25: Environment & Energy: excellent development across all areas
ENVIRONMENT & ENERGY: EXCELLENT DEVELOPMENT ACROSS ALL AREAS UNIT Q1 2024 Q1 2023 +/- REVENUE BY REGION Order intake MEUR 461.1 353.2 +31% Q1 2023 VS. Q1 2024 (%) Order backlog (as of end of period) MEUR 1,435.1 1,125.4 +28% Revenue MEUR 312.3 297.9 +5% Emerging Europe / markets North America EBITDA
Slide 26: 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
Slide 27: Outlook 2024
OUTLOOK 2024 Guidance adjusted – stable revenues and profitability in FY-2024 MARKET DEVELOPMENT • Satisfactory development in weak markets • Solid demand for green technologies • No quick recovery of the markets expected GUIDANCE 2024 ADJUSTED • Stable revenues compared to 2023 • Stable profitabili
Slide 28: Group targets 2024-2026
GROUP TARGETS 2024-2026 • Continue 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 28 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2024 / APRIL 25, 2024