Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (September 2024)
32 slides from Andritz's investor presentation, September 2024
Slide 1: Investor Presentation ANDRITZ
INVESTOR PRESENTATION ANDRITZ
Slide 2: No challenge is too big – a pioneer in large-scale tech solutions worldwide
NO CHALLENGE IS TOO BIG – A PIONEER IN LARGE-SCALE TECH SOLUTIONS WORLDWIDE 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 green transition Supporting our cu
Slide 3: Four strong areas with a high proportion of future technologies
FOUR STRONG AREAS WITH A HIGH PROPORTION OF FUTURE TECHNOLOGIES ANDRITZ GROUP 2023 Order Intake 8.552 MEUR Backlog 9.873 MEUR Revenue 8.660 MEUR EBITA (reported) 742 MEUR PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 46%* 21% 18% 15% Revenue 3.987 MEUR Revenue 1.840 MEUR Revenue 1.522 MEUR Rev
Slide 4: Exceptional growth opportunities in all business areas
EXCEPTIONAL GROWTH OPPORTUNITIES IN ALL BUSINESS AREAS PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY Underlying mid-term 2-3% 2-3% 2-3% 4-5% market growth Current strong regional South America and Asia Asia and North America Asia, Australia, North Europe and North America markets America, Euro
Slide 5: The diverse ANDRITZ team services customers around the globe
THE DIVERSE ANDRITZ TEAM SERVICES CUSTOMERS AROUND THE GLOBE REVENUE BY REGION ~30,000 >280 >80 2023 EMPLOYEES LOCATIONS COUNTRIES Rest of the world WORLDWIDE 4% Asia Europe 30% 28% Asia (without China) Approx. 64% white-collar and Africa, Australia South America North America 24% 36% blue-collar 8%
Slide 6: Our ESG program well on track to reach 2025 ESG goals
OUR ESG PROGRAM WELL ON TRACK TO REACH 2025 ESG GOALS ENVIRONMENT SOCIAL GOVERNANCE Share of revenue from Reduction in the annual Procurement volume 50% sustainable solutions 30% accident frequency rate 85% covered by assessed and products y/y (>1 day of absence) y/y suppliers 2023: 45% 2023: 7% 202
Slide 7: We expand our portfolio in all business areas
WE EXPAND OUR PORTFOLIO IN ALL BUSINESS AREAS Acquisitions by business area since 2002 – as of August 2024 PULP & PAPER METALS HYDRO 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 Tig
Slide 8: Proven value creation through strategic acquisitions
PROVEN VALUE CREATION THROUGH STRATEGIC ACQUISITIONS Clear acquisition strategy • Complimentary business in our industries • Retain the management • No acquisitions of competitors 78 Successful acquisitions since 2002 2.1 BEUR Invested in acquisitions 2002-2023 3.6 BEUR Total earnings (EBITA) 2002-2
Slide 9: Our strategy: long-term profitable growth
OUR STRATEGY: LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH DIGITALIZATION • Grow revenue • Grow profitabilty • Grow service share CUSTOMER SERVICE 9
Slide 10: Redefining the future: unleashing our innovation engine
REDEFINING THE FUTURE: UNLEASHING OUR INNOVATION ENGINE 139 MEUR in 2023 for R&D 370New patent 6,510 Patent protection rights applications in 2023 10
Slide 11: We are capable to commercialise innovative inhouse developments
WE ARE CAPABLE TO COMMERCIALISE INNOVATIVE INHOUSE DEVELOPMENTS QUOTATION CONSTRUCTION OPERATION Green Hydrogen Alkaline PEM Carbon Capture Amin Membrane Textile recycling Mechanical Chemical Battery Lab and pilot lines Giga-factories Bio-Methanol Kraftanol purification Synthesis SulfoLoop 11
Slide 12: Decarbonization: we enable the green transition
DECARBONIZATION: WE ENABLE THE GREEN TRANSITION • Developing economically feasible key technologies for the green transition • Providing full life cycle services from project development to operation and maintenance • We offer solutions e.g. for: • carbon capture • production of green hydrogen • bat
Slide 13: Digitalization: supporting customers throughout plant life cycle
DIGITALIZATION: SUPPORTING CUSTOMERS THROUGHOUT PLANT LIFE CYCLE PROCESS OPTIMIZATION PLANT MANAGEMENT ASSET OPTIMIZATION CYBERSECURITY TRAINING Maximize Maximize the Maximize Proactively Boost customer plant process value of data – productivity, manage digital expertise and performance from raw dat
Slide 14: Customer service: success through our lifecycle solutions
CUSTOMER SERVICE: SUCCESS THROUGH OUR LIFECYCLE SOLUTIONS We service our customers at every step, ensuring them high product quality, output and uptime through quick response time and cost-competitive efficient life cycle solutions. 14
Slide 15: 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 42% 456 MEUR (FY 22: (45%)* (FY 22: 1,536 MEUR) 409 MEUR) 58% (55%)* 38% 75% (75%)* Service revenue (39%)* 3
Slide 16: Stable development in service and base business, large projects dropped
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 17: 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 +8% 3,000 2,666 2,608 2,443 2,155 2,018 1,931 2016 2017 2018 2019 2020 2021 2022 2023 17
Slide 18: Order backlog still on satisfactory level
ORDER BACKLOG STILL ON SATISFACTORY LEVEL Pulp & Paper and Hydropower account for 66% of total order backlog -3% 10,822 10,569 ORDER BACKLOG BY BUSINESS AREA 10,408 10,361 Order backlog in MEUR H1 2024 VS FY 2023 9,859 9,977 9,873 10,003 9,709 9,435 IN MEUR 8,166 7,925 Environment & 7,397 7,330 7,40
Slide 19: Cash flow development
CASH FLOW DEVELOPMENT Q2 cash flow impacted by NWC increase in Q2 compared to Q1 OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW IN MEUR 604 567 538 430 359 346 296 300 285 264 268 227 207 206 186 155 154 69 84 57 43 31 29 23 2016 2017 2018 2019 2020 2021 2022 2023 -31 -48 Q1 Q2 Q3 Q
Slide 20: Financial position remains solid
FINANCIAL POSITION REMAINS SOLID Sufficient gross liquidity despite dividend payment in Q1 and loan repayment in Q2 Liquid funds and Net liquidity in MEUR Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR 2,051 Effects on net liquidity 1,838 1,702 1,772 1,719 1,787 • Operating cash flow 1,5
Slide 21: Strong dividend growth
STRONG DIVIDEND GROWTH 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 ratio 51.9 48.
Slide 22: Outlook 2024
OUTLOOK 2024 Guidance confirmed: Stable revenues and profitability in FY 2024 MARKET DEVELOPMENT • No quick recovery of the markets expected • Project activity picking up in several markets GUIDANCE 2024 CONFIRMED • Satisfactory performance in H1, existing order backlog • Strong growth in Service bu
Slide 23: Targets 2026
TARGETS 2026 2026 GROWTH Revenue before new major acquisitions > 10 BEUR CASH CONVERSION RATE CCR ~1 EBITA PROFITABILITY >9% STABLE AND INCREASING 50-60% DIVIDENDS of EPS NET INCOME MARGIN NI >6%
Slide 24: Group revenue to exceed 10 BEUR by 2026, with continued growth in all business areas
GROUP REVENUE TO EXCEED 10 BEUR BY 2026, WITH CONTINUED GROWTH IN ALL BUSINESS AREAS Revenue in MEUR Growth Ambition: PULP & PAPER CAGR > 5% METALS 3,987 3,431 3,238 Growth Ambition: 2,953 2,775 CAGR > 5% 1,994 1,933 1,936 2,127 1,840 1,718 1,598 1,644 1,635 1,637 1,621 1,421 1,366 GROUP Target: Rev
Slide 25: Raised EBITA targets for all business areas except Metals
RAISED EBITA TARGETS FOR ALL BUSINESS AREAS EXCEPT METALS – NEW GROUP TARGET: >9% EBITA-margin in % PULP & PAPER METALS 11.4 10.9 Target (rev) 10.5 10.3 9.9 9.7 9.6 11-13% 9.4 9.1 (previous 10-11%) 7.2 6.0 Target 4.1 5.0 6-8% 3.9 2.8 1.7 New 2015 2016 2017 2018 2019 2020 2021 2022 2023 GROUP 2015 20
Slide 26: Key figures Q2 / H1 2024
KEY FIGURES Q2 / H1 2024 Q2 Q2 H1 H1 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 1,895.1 2,292.3 -17% 3,845.4 4,712.5 -18% 8,551.9 Order backlog (as of end of period) MEUR 9,709.1 10,569.0 -8% 9,709.1 10,569.0 -8% 9,872.6 Revenue MEUR 2,100.2 2,146.4 -2% 3,986.6 4,109.0 -3% 8,660.0 • Ord
Slide 27: Stable earnings development in H1 2024
STABLE EARNINGS DEVELOPMENT IN H1 2024 EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) 0% -2% 333 333 335 329 (8.1%) (8.4%) (8.2%) (8.2%) • Stable EBITA development • Increased EBITA margin from 174 181 175 improved mix and strong project 175 (8.1%) (8.6%) (8.2%) (8.3%) execu
Slide 28: Net income – cash flow bridge H1 2024
NET INCOME – CASH FLOW BRIDGE H1 2024 Strong development of operating and free cash flow compared to last year due to favorable NWC development and reduced tax payments IN MEUR Split of total depreciation • +90.4 MEUR depreciation (106.8)* * • +23.8 MEUR IFRS 3 amortization (-59.8)* (17.4)* (-332.7)
Slide 29: Pulp & Paper: order pick-up in Q2, profitability remained at high level
PULP & PAPER: ORDER PICK-UP IN Q2, PROFITABILITY REMAINED AT HIGH LEVEL UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 842.8 820.6 +3% 1,485.3 1,789.0 -17% 3,036.0 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 2,889.5 3,954.2 -27% 2,889.5 3,9
Slide 30: Metals: decline in order intake, stable revenue based on existing backlog
METALS: DECLINE IN ORDER INTAKE, STABLE REVENUE BASED ON EXISTING BACKLOG UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 321.0 507.7 -37% 670.1 1,177.0 -43% 1,997.7 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 1,842.4 2,195.1 -16% 1,842.4 2,
Slide 31: Hydropower: strong increase in profitability
HYDROPOWER: STRONG INCREASE IN PROFITABLITLY UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 284.1 657.3 -57% 781.7 1,086.6 -28% 2,020.9 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 3,473.2 3,302.3 +5% 3,473.2 3,302.3 +5% 3,398.8 Revenue MEUR
Slide 32: Environment & Energy: satisfied development across all areas
ENVIRONMENT & ENERGY: SATISFIED DEVELOPMENT ACROSS ALL AREAS UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 447.2 306.7 +46% 908.3 659.9 +38% 1,497.3 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 1,504.0 1,117.4 +35% 1,504.0 1,117.4 +35% 1,28