Andritz Ag · VIE:ANDR
Andritz — Non-Deal Roadshow (December 2019)
34 slides from Andritz's roadshow presentation, December 2019
Slide 1: Company Presentation ANDRITZ Group December 2019
COMPANY PRESENTATION ANDRITZ GROUP DECEMBER 2019
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2019 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 2 / COMPANY PRESENTATION, DECEMBER 2019 / © ANDRITZ GROUP
Slide 3: The ANDRITZ Group
THE ANDRITZ GROUP ANDRITZ is a globally leading supplier of plants, equipment, systems and services for hydropower stations, the pulp and paper industry, the metalworking and steel industries, and solid/liquid separation in the municipal and industrial sectors as well as for animal feed and biomass
Slide 4: A World Market Leader with Four Business Areas
A WORLD MARKET LEADER WITH FOUR BUSINESS AREAS PULP & PAPER METALS HYDRO SEPARATION 39 29 22 10 % order intake* % order intake* % order intake* % order intake* PRODUCT OFFERING PRODUCT OFFERING PRODUCT OFFERING PRODUCT OFFERING Equipment for production of Presses/press lines for metal Electromechani
Slide 5: Long-Term Growth Based on Acquisitions and Organic Expansion
LONG-TERM GROWTH BASED ON ACQUISITIONS AND ORGANIC EXPANSION Compound Annual Growth Rate (CAGR) of Group sales 2009-2018: +7% p.a. (thereof approximately half from organic growth) 6,377 5,859 6,039 5,889 6,031 5,711 5,177 4,596 3,554 3,198 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sales (MEU
Slide 6: Strengthening of Market Position by Acquisitions
STRENGTHENING OF MARKET POSITION BY ACQUISITIONS Acquisitions by business area since 2000 HYDRO PULP & PAPER METALS SEPARATION 2006 VA TECH HYDRO 2000 Ahlstrom Machinery 2010 Rieter Perfojet 2000 Kohler 2000 UMT 2007 Tigép 2000 Lamb Baling Line 2010 DMT/Biax 2002 SELAS SAS Furnace Div. 2002 3SYS 200
Slide 7: Long-Term EBITA Margin Goals by Business Area
LONG-TERM EBITA MARGIN GOALS BY BUSINESS AREA HYDRO PULP & PAPER 9.5 9.9 8.8 8.7 8.7 8.3 8.1 8.3 7.9 7.8 7.3 7.5 5.9 Long-term Long-term 5.2 goal: 5.6 goal: 7.0-8.0% 8.5-9.0% NEW NEW 9.0-10.0% 7.0-8.5% 2012 2013 2014 2015 2016 2017 2018 Q1-Q3 2012 2013 2014 2015 2016 2017 2018 Q1-Q3 2019 -1.8 2019 M
Slide 8: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2019 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 8 / COMPANY PRESENTATION, DECEMBER 2019 / © ANDRITZ GROUP
Slide 9: Significant Increase of Order Intake in Q3 2019
SIGNIFICANT INCREASE OF ORDER INTAKE IN Q3 2019 Pulp & Paper strongly up due to large pulp mill order ORDER INTAKE Q3 2019 (IN MEUR) ORDER INTAKE BY BUSINESS AREA (IN MEUR) ORDER INTAKE Q1-Q3 2019 (IN MEUR) Q3 2019 Q3 2018 +/- Pulp & Paper 1,163 546 +113% +22% Metals 429 457 -6% 5,799 Hydro 343 303
Slide 10: Quarterly Development of Order Intake
QUARTERLY DEVELOPMENT OF ORDER INTAKE Aggregated order intake of the last four quarters amounts to ~7.7 bn. EUR +43% ORDER INTAKE BY REGION MEUR MEUR Q1-Q3 2019 (Q1-Q3 2018) IN % 2,500 2,250 2,094 10,000 1,908 2,047 2,000 1,737 1,658 8,000 1,431 1,470 1,532 1,560 1,467 1,533 1,469 1,500 1,149 1,188
Slide 11: Group Sales Driven by Pulp & Paper
GROUP SALES DRIVEN BY PULP & PAPER SALES Q3 2019 (IN MEUR) SALES BY BUSINESS AREA (IN MEUR) SALES Q1-Q3 2019 (IN MEUR) Q3 2019 Q3 2018 +/- +13% Pulp & Paper 751 514 +46% 4,753 Metals 423 400 +6% 4,201 Hydro 351 362 -3% Separation 166 162 +2% +3% organic +18% Q1-Q3 2019 Q1-Q3 2018 +/- 1,690 Pulp & Pa
Slide 12: Service Business Continues to Grow
SERVICE BUSINESS CONTINUES TO GROW Quarterly development of service sales (in MEUR) +31% 800 2,800 702 671* 700 651 2,600 558 560 594 587 600 514 511 482 2,400 461 470 437 465 468 465 469 500 403 428 2,200 400 2,000 300 1,800 200 100 1,600 0 1,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 1
Slide 13: Service Business by Business Area
SERVICE BUSINESS BY BUSINESS AREA % of total business area sales PULP & PAPER HYDRO 48 52 ANDRITZ Fabrics and Rolls provides machine clothings 37 41 42 and roll covers for paper, tissue, and board machines. 35 30 26 25 26 29 28 2014 2015 2016 2017 2018 Q1-Q3 2014 2015 2016 2017 2018 Q1-Q3 2019 2019
Slide 14: Group Order Backlog Reached Highest Level in Company History
GROUP ORDER BACKLOG REACHED HIGHEST LEVEL IN COMPANY HISTORY Upward trend since end of 2017 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) +18% ORDER BACKLOG Q3 2019 BY BUSINESS AREA 7,786 7,724 8,121 (IN %) 7,349 7,324 7,148 7,076 7,044 7,084 7,261 6,892 6,789 6,974 6,849 6,651 6,841 6,883 6,383 6,55
Slide 15: Earnings and Profitability Impacted by Restructuring Measures in Q3 2019
EARNINGS AND PROFITABILITY IMPACTED BY RESTRUCTURING MEASURES IN Q3 2019 EBITA margin excluding extraordinary items practically unchanged EBITA (IN MEUR) AND EBITA MARGIN (IN %) 101.7** +18% 85.9 * • Practically stable profitability excluding extraordinary items 6.0%** • Q3 2019: ~-95 MEUR restructu
Slide 16: Earnings and Profitability Development Q1-Q3 2019
EARNINGS AND PROFITABILITY DEVELOPMENT Q1-Q3 2019 Significant decrease as a consequence of restructuring measures EBITA (IN MEUR) AND EBITA MARGIN (IN %) 286.9** +14% 252.2 * 6.0%** • Practically stable profitability excluding extraordinary items • Q1-Q3 2019: ~-103 MEUR restructuring measures EBITA
Slide 17: Profitability by Business Area
PROFITABILITY BY BUSINESS AREA EBITA margin (in %) PULP & PAPER METALS HYDRO SEPARATION 9.9 9.0 9.1** 8.5 8.1** 7.5 8.8 * 6.5** 6.2** 6.1 6.0** 6.0 5.8** 7.7 * 5.2 4.8 4.6 5.6 * 5.1* 5.2* 2.9 4.0 * 1.7 2.3** 2.6 0.3** FY 2018 Q3 2018 Q3 2019 Q1-Q3 Q1-Q3 FY 2018 Q3 2018 Q3 2019 Q1-Q3 Q1-Q3 FY 2018 Q3
Slide 18: Further Improvement of Net Working Capital in Q3 2019
FURTHER IMPROVEMENT OF NET WORKING CAPITAL IN Q3 2019 Mainly driven by Pulp & Paper and Hydro; increase in Metals Reduction of trade accounts receivable and increase in contract liabilities 18 / COMPANY PRESENTATION, DECEMBER 2019 / © ANDRITZ GROUP
Slide 19: Significant Increase in Cash Flow from Operating Activities
SIGNIFICANT INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES From -85 MEUR in Q1-Q3 2018 to +439 MEUR in Q1-Q3 2019 IN MEUR Split of total depreciation: • ~146 MEUR depreciation, thereof • ~26 MEUR from newly acquired companies and • ~34 MEUR from IFRS 16 Leasing (-22.6) • ~61 MEUR IFRS 3 Amortizatio
Slide 20: EBITDA – Net Income Bridge Q1-Q3 2019
EBITDA – NET INCOME BRIDGE Q1-Q3 2019 • Leasing IFRS 16 (~34 MEUR) • Newly acquired companies (~26 MEUR) Thereof ~39 MEUR for newly acquired companies (mainly Xerium) Increase in interest expenses due to issuance of Schuldscheindarlehen and ECA loan as well as due to decrease in Metals other financi
Slide 21: Key Figures Q3 2019 / Q1-Q3 2019 at a Glance
KEY FIGURES Q3 2019 / Q1-Q3 2019 AT A GLANCE Strong cash flow generation in Q3 2019 UNIT Q3 2019 Q3 2018 +/- Q1-Q3 2019 Q1-Q3 2018 +/- 2018 Order intake MEUR 2,093.9 1,468.7 +42.6% 5,799.1 4,738.0 +22.4% 6,646.2 Order backlog (as of end of period) MEUR 8,120.7 6,882.8 +18.0% 8,120.7 6,882.8 +18.0% 7
Slide 22: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2019 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 22 / COMPANY PRESENTATION, DECEMBER 2019 / © ANDRITZ GROUP
Slide 23: Pulp & Paper (1): High Project Activity Despite Slowdown of Pulp Markets
PULP & PAPER (1): HIGH PROJECT ACTIVITY DESPITE SLOWDOWN OF PULP MARKETS • Pulp High project activity for both modernization of existing pulp mills and greenfield pulp mills • Paper Satisfactory market development for tissue and packaging equipment continued • Power generating boilers Very good proj
Slide 24: Pulp & Paper (2): Strong Increase in Order Intake and Sales
PULP & PAPER (2): STRONG INCREASE IN ORDER INTAKE AND SALES Earnings and profitability at satisfactory levels Order intake significantly up, mainly due to a large-scale greenfield pulp mill order in UNIT Q3 2019 Q3 2018 +/- Q1-Q3 2019 Q1-Q3 2018 +/- 2018 the mid-three-digit million euros range booke
Slide 25: Metals (1): Unchanged Low Project and Investment Activity
METALS (1): UNCHANGED LOW PROJECT AND INVESTMENT ACTIVITY Weak market conditions in both Metals Forming and Processing • Metals Forming Unchanged low project and investment activity due to the continuing weak © NAS international automotive market as well as due to the economic slow down in China. On
Slide 26: Metals (2): Earnings and Profitability Significantly Down
METALS (2): EARNINGS AND PROFITABILITY SIGNIFICANTLY DOWN Restructuring measures at Schuler booked in Q3 2019 Order intake in Q3 2019 slightly down y/y: Up in UNIT Q3 2019 Q3 2018 +/- Q1-Q3 2019 Q1-Q3 2018 +/- 2018 Metals Forming, down in Metals Processing Order intake MEUR 429.0 456.6 -6.0% 1,238.8
Slide 27: Necessary Capacity Adjustments at Schuler
NECESSARY CAPACITY ADJUSTMENTS AT SCHULER Excluding acquisitions, total number of employees reduced by ~25% since acquisition in 2013 SALES (IN MEUR) EMPLOYEES BY REGION (AS OF END OF PERIOD) +4% 1,212 1,165 +5.7% 5,519** 208 5,219 -14% North America: 355 North America: 361 South America: 462 China:
Slide 28: Hydro (1): Unchanged Moderate Market Environment
HYDRO (1): UNCHANGED MODERATE MARKET ENVIRONMENT Selective award of individual projects, especially in Emerging Markets ANDRITZ will supply two pump turbines for the Hatta • New hydropower plants Pumped Storage Power Plant in Dubai Some new, larger projects are currently in the planning phase, espec
Slide 29: Hydro (2): Order Intake Up from Low Level of Last Year's Reference Period
HYDRO (2): ORDER INTAKE UP FROM LOW LEVEL OF LAST YEAR‘S REFERENCE PERIOD Stable earnings and profitability (excl. extraordinary effectts) Increase in Order intake in UNIT Q3 2019 Q3 2018 +/- Q1-Q3 2019 Q1-Q3 2018 +/- 2018 Q3 2019 due to booking of Order intake MEUR 343.0 303.1 +13.2% 944.8 1,056.2
Slide 30: Separation (1): Satisfactory Project and Investment Activity
SEPARATION (1): SATISFACTORY PROJECT AND INVESTMENT ACTIVITY Particularly for solid/liquid separation equipment • Municipal Investment activity at solid levels (sewage sludge dewatering and drying) • Industrial Solid project activity in chemicals, mining, and minerals; investment activity in food sl
Slide 31: Separation (2): Further Earnings Improvement
SEPARATION (2): FURTHER EARNINGS IMPROVEMENT Earnings and profitability (excl. extraordinary effects) significantly up UNIT Q3 2019 Q3 2018 +/- Q1-Q3 2019 Q1-Q3 2018 +/- 2018 Order intake MEUR 158.6 163.5 -3.0% 526.5 552.1 -4.6% 696.7 Increase in sales due to the Order backlog (as of end of period)
Slide 32: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2019 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 32 / COMPANY PRESENTATION, DECEMBER 2019 / © ANDRITZ GROUP
Slide 33: Outlook: Guidance for 2019 Confirmed
OUTLOOK: GUIDANCE FOR 2019 CONFIRMED Largely unchanged prospects for the remaining months Status of general business environment: • Slowdown of global economy Guidance for 2019 confirmed: • For 2019, ANDRITZ continues to expect a • Steel and automotive industries in strong downturn significant incre
Slide 34: Disclaimer
DISCLAIMER This presentation contains valuable, proprietary property belonging to ANDRITZ AG or its affiliates (“the ANDRITZ GROUP”), and no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales contracts that may be con