Slide 1: Results Q4 / FY2023
ANDRITZ GROUP RESULTS Q4 / FY2023 FEBRUARY 29, 2024
Slide 2: Reporting logic: all numbers according to the 2023 organizational structure
REPORTING LOGIC: ALL NUMBERS ARE ACCORDING TO THE 2023 ORGANIZATIONAL STRUCTURE • All Q4 and full year numbers are reported in the structure, which was effective during 2023 (in line with Q1, Q2 and Q3 reporting) • The new 2024 structure (as announced in the CMD) will be considered for the first tim
Slide 3: Agenda: Q4 / FY2023 at a glance
AGENDA 1 Q 4 / F Y 2 0 2 3 AT A G L AN C E
Slide 4: Q4-2023 with year on year growth in order intake, revenue and earnings
Q4-2023 WITH YEAR ON YEAR GROWTH IN ORDER INTAKE, REVENUE AND EARNINGS Major financial KPIs Q4 2023 ORDER INTAKE REVENUE ORDER BACKLOG 2.0 billion EUR 2.4 billion EUR 9.9 billion EUR (Q4 2022: 10.0 billion EUR / -1%) (Q4 2022: 1.8 billion EUR / +12%) (Q4 2022: 2.3 billion EUR / +5%) NET INCOME EBITA
Slide 5: Full-year 2023 with satisfying order intake and significant growth in revenue and results
FULL-YEAR 2023 WITH SATISFYING ORDER INTAKE AND SIGNIFICANT GROWTH IN REVENUE AND RESULTS Major financial KPIs FY 2023 ORDER INTAKE GROUP REVENUE EBITA (reported) 8.6 billion EUR 8.7 billion EUR 742 MEUR (8.6%) (2022: 9.3 billion EUR / -8%) (2022: 7.5 billion EUR / +15%) (2022: 649 MEUR (8.6%) / +14
Slide 6: Well on track to reach our ESG goals
WELL ON TRACK TO REACH OUR 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% 2
Slide 7: ANDRITZ continued its successful acquisition strategy
ANDRITZ CONTINUED ITS SUCCESSFUL ACQUISITION STRATEGY Major acquisitions in 2023 Dan-Web Machinery, Denmark Scitech-Service, Finland DECARBONIZATION Dry molded fiber technology Development and engineering applications in packaging and hub for advanced biorefinery disposable tableware and fiber techn
Slide 8: Agenda: Performance Q4 / FY
AGENDA 2 P E R F O R M AN C E Q 4 / F Y 2 0 2 3
Slide 9: Order intake satisfactory
ORDER INTAKE SATISFACTORY ORDER INTAKE* ORDER INTAKE BY BUSINESS AREA* ORDER INTAKE BY REGION 2023 VS. 2022 (%) -8% 2023 2022 +/- 9.263 Pulp & Paper 3,119 4,296 -27% Europe / 8.552 Metals 2,125 2,009 +6% Emerging North America 1.812 +12% markets Hydro 2,021 1,720 +17% 56% (54%) 2.036 44% (46%) Separ
Slide 10: Stable development in service and base business, large projects dropped by more than 800 MEUR
STABLE DEVELOPMENT IN SERVICE AND BASE BUSINESS, LARGE PROJECTS DROPPED BY MORE THAN 800 MEUR Order intake in MEUR 9,263 8,552 7,880 1,767 924 7,282 Projects with >100 MEUR order 1,213 volume have a limited share in the 6,646 6,018 655 1,394 6,108 total order intake 5,569 5,580 635 832 287 117 4,143
Slide 11: Very favorably revenue development
VERY FAVORABLY REVENUE DEVELOPMENT Considerable increase in all four business areas leads to a new record level REVENUE* REVENUE BY REGION REVENUE BY BUSINESS AREA* 2023 VS. 2022 (%) 15% 2023 2022 +/- 8,660 Pulp & Paper 4,096 3,514 +17% Emerging Europe / North America 7,543 Metals 1,841 1,621 +14% m
Slide 12: Service continuously growing with higher growth rates in recent years
SERVICE CONTINUOUSLY GROWING WITH HIGHER GROWTH RATES IN RECENT YEARS Revenue in MEUR 3,328 CAGR+7% 3,000 2,666 2,608 2,443 2,155 2,018 1,898 1,931 2015 2016 2017 2018 2019 2020 2021 2022 2023 12 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2023 / FEBRUARY 29, 2024 / © ANDRITZ GROUP
Slide 13: Stable service business continues to support profitability
STABLE SERVICE BUSINESS CONTINUES TO SUPPORT PROFITABILITY FY 2023: Lower share in Service due to execution of large pulp mill projects PULP & PAPER METALS ANDRITZ GROUP 25% (25%)* 1,683 MEUR 41% 456 MEUR (FY 22: (44%)* (FY 22: 1,536 MEUR) 409 MEUR) 59% (46%)* 38% 75% (75%)* Service revenue (40%)* 3
Slide 14: Order backlog
ORDER BACKLOG Backlog maintained on the high level of 2022 Pulp & Paper and Hydro account for 67% of total order backlog ORDER BACKLOG BY BUSINESS AREA -1% AS OF END OF DECEMBER 2023 10,569 (DECEMBER 2022) 10,822 10,408 10,361 Order backlog in MEUR 9,859 9,977 9,873 9,435 Separation IN MEUR 8,121 8,
Slide 15: Record earnings, profitability remains stable
RECORD EARNINGS PROFITABILTY REMAINS STABLE EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) • Operating result (EBITA) increased +14.4% +17.5% and reached a record level. Profitability (EBITA margin) 741.9 757.1 (8.6) (8.7) remained stable at 8.6%. 648.5 644.3 (8.6) (8.5) 232
Slide 16: Increased full year EBITA in all four business areas
INCREASED FULL YEAR EBITA IN ALL FOUR BUSINESS AREAS EBITA reported (Comparable EBITA) in MEUR PULP & PAPER METALS HYDRO SEPARATION 421.7 (427.9) 378.9 (384.7) 135.0 129.2 135.0 142.7 (133.6) (132.4) (126.5) (142.9) 89.4 88.1 72.3 62.3 (91.2) (95.1) 34.9 (73.8) 40.9 42.2 26.6 (59.3) 25.4 21.4 (42.5)
Slide 17: Increased profitability in Metals and Hydro, solid profitability in other business areas
INCREASED PROFITABILITY IN METALS AND HYDRO, SOLID PROFITABILITY IN OTHER BUSINESS AREAS EBITA margin (Comparable EBITA margin) in % PULP & PAPER METALS HYDRO SEPARATION 12.7 12.2 12.3 12.2 (13.2) 11.9 (12.2) (11.6) (12.1) 11.1 (11.9) 10.8 (11.4) 10.3 (10.9) (10.4) 7.8 (9.2) 6.0 5.8 5.4 5.5 (6.6) (6
Slide 18: EBITDA – net income bridge
EBITDA – NET INCOME BRIDGE Net income achieved Group Target >5.0% IN MEUR TAX RATE: ~26.7% (~25.6%*) (825.5)* (648.5*) (-177.0*) (-10.2*) (-31.8*) (540.9*) (572.7*) (-65.6*) (402.6*) (-138.3*) 10.5%** 8.6%** 7.9%** 7.9%** 5.8%** EBITDA Depreciation EBITA IFRS 3 Impairment EBIT Financial EBT Income t
Slide 19: Cash flow from operating activities and free cash flow
CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW Change in NWC: IN MEUR + 30 MEUR increase in inventories - 42 MEUR decrease in advance payments made + 11 MEUR increase in acc. receivables + 192 MEUR increase in contract assets (252.8)* - 40 MEUR increase in acc. Payables + 171 MEUR decrease i
Slide 20: On a 3-year average view earnings are turned reliably into cash
ON A 3-YEAR AVERAGE VIEW EARNINGS ARE TURNED RELIABLY INTO CASH IN RECENT YEARS EBITA and operating cash flow 3-year rolling average in MEUR EBITA 3-YEAR ROLLING AVERAGE OPERATING CASH FLOW 3-YEAR ROLLING AVERAGE 646 604 529 567 538 438 427 427 417 430 394 376 324 359 296 264 205 207 2015 2016 2017
Slide 21: Solid financial position
SOLID FINANCIAL POSITION 2021/22: Net-liquidity increase target exceeded significantly, aided by favorable ONWC development 2023: Stagnation due to cash consumption from increased ONWC within the regular order cycles Liquid funds and Net liquidity in MEUR 2,350 Acquisition Xerium: Acquisition Schule
Slide 22: Proposed dividend of 2.50 EUR/share
PROPOSED DIVIDEND OF 2.50 EUR/SHARE Stable and increasing dividends with average pay-out ratio above 50% DIVIDEND PER SHARE (EUR) 2.5* 2.1 1.5 1.6 1.6 1.7 1.4 1.0 0.5 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Proposal to the Annual General Meeting PAYOUT RATIO (%) 70.5 55.8 60.1 average payout
Slide 23: Key figures Q4 / FY 2023 at a glance
KEY FIGURES Q4 / FY 2023 AT A GLANCE UNIT Q4 2023 Q4 2022 +/- 2023 2022 +/- Order intake MEUR 2,035.9 1,812.4 +12% 8,551.9 9,263.4 -8% Order backlog (as of end of period) MEUR 9,872.6 9,976.5 -1% 9,872.6 9,976.5 -1% Revenue MEUR 2,446.9 2,335.1 +5% 8,660.0 7,542.9 +15% • Order intake reduced due to
Slide 24: Group roadmap 2021-2023: all targets achieved
GROUP ROADMAP 2021-2023 ALL TARGETS ACHIEVED GROUP TARGETS 2021-2023 STATUS 2023 Group business volume well above 7 billion Order intake: 8.6 billion EUR EUR, including M&A towards 8 billion EUR Revenue: 8.7 billion EUR EBITA margin at solid 8% 8.6% Net income to increase to >5% 5.8% Continue M&A st
Slide 25: Agenda: Update of business areas
AGENDA 3 U P D AT E O F B U S I N E S S AR E AS
Slide 26: Pulp & Paper: solid business development
PULP & PAPER: SOLID BUSINESS DEVELOPMENT Revenue, and EBITA reached new record levels y/y UNIT Q4 2023 Q4 2022 +/- 2023 2022 +/- Order intake MEUR 668.1 735.6 -9% 3,119.4 4,296.4 -27% REVENUE BY REGION 2023 VS. 2022 (%) Order backlog (as of end of period) MEUR 3,229.5 4,207.8 -23% 3,229.5 4,207.8 -2
Slide 27: Metals: earnings and profitability continued upward trend
METALS: EARNINGS AND PROFITABILITY CONTINUED UPWARD TREND Highest order intake in company history UNIT Q4 2023 Q4 2022 +/- 2023 2022 +/- Order intake MEUR 379.4 453.8 -16% 2,124.5 2,008.60 +6% REVENUE BY REGION 2023 VS. 2022 (%) Order backlog (as of end of period) MEUR 2,183.1 1,938.1 +13% 2,183.1 1
Slide 28: Hydro: strong increase in order intake and revenue
HYDRO: STRONG INCREASE IN ORDER INTAKE AND REVENUE Order intake reached again a very favorable level y/y UNIT Q4 2023 Q4 2022 +/- 2023 2022 +/- Order intake MEUR 610.5 310.8 +96% 2,020.9 1,720.5 +17% REVENUE BY REGION 2023 VS. 2022 (%) Order backlog (as of end of period) MEUR 3,398.8 2,878.4 +18% 3,
Slide 29: Separation: good business development
SEPARATION: GOOD BUSINESS DEVELOPMENT Excellent development of Service business UNIT Q4 2023 Q4 2022 +/- 2023 2022 +/- Order intake MEUR 377.9 312.2 +21% 1,287.1 1,237.9 +4% REVENUE BY REGION 2023 VS. 2022 (%) Order backlog (as of end of period) MEUR 1,061.2 952.2 +11% 1,061.2 952.2 +11% Revenue MEU
Slide 30: Agenda: Outlook
AGENDA 4 OUTLOOK
Slide 31: 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 31 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2023 / FEBRUARY 29, 2024
Slide 32: Market outlook and financial guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Continued good market expectations for all four business areas MARKET OUTLOOK • Generally satisfactory market activities • Good markets for Hydro and other Green Products as well as in North America • Economic and geopolitical challenges are closely monitored FI
Slide 33: Results Q4 / FY2023
ANDRITZ GROUP RESULTS Q4 / FY2023 FEBRUARY 29, 2024
Slide 34: 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