Andritz Ag · VIE:ANDR
Andritz — RBI Investor Conference Zürs (April 2024)
35 slides from Andritz's conference presentation, April 2024
Slide 1: Innovative Technologies for the Planet
ANDRITZ GROUP INNOVATIVE TECHNOLOGIES FOR THE PLANET A GLOBAL PARTNER FOR KEY INDUSTRIES THAT SHAPE THE WORLD RBI INVESTOR CONFERENCE ZÜRS
Slide 2: Agenda
AGENDA 1 AN D R I T Z AT A G L AN C E
Slide 3: 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 4: 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 5: 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 6: 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 7: Competence, Commitment, Passion – The Whole Team Stands for ANDRITZ Success
COMPETENCE, COMMITMENT, PASSION – THE WHOLE TEAM STANDS FOR ANDRITZ SUCCESS REVENUE BY REGION Around 30,000 China 2023 Others 4% employees within the ANDRITZ GROUP in over 80 countries 13% Europe 28% Asia (without China 17% • Approx. 65% white-collar Asia (without China) Africa, Australia South Amer
Slide 8: Our Strategy to Achieve Long-Term Profitable Growth
OUR STRATEGY TO ACHIEVE LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH DIGITALIZATION • Grow revenue • Grow profitability • Grow service share CUSTOMER SERVICE 8 / ANDRITZ / INVESTOR PRESENTATION / APRIL 2024 / © ANDRITZ GROUP
Slide 9: 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 10: Carbon Capture for Industrial Process
CARBON CAPTURE FOR INDUSTRIAL PROCESS Solutions that remove CO 2 from the emissions of industrial processes © Rohrdorfer plant, © myrzikundjarisch tower PROJECT Rohrdorfer, Germany. CO2 capture plant in Germany based on amins in the cement industry. SCOPE CO2 absorption / desorption process OUTPUT C
Slide 11: Large-Scale Plant for the Production of Green Hydrogen for Salzgitter
LARGE-SCALE PLANT FOR THE PRODUCTION OF GREEN HYDROGEN FOR SALZGITTER Renewable energy transition, plant solutions and complete life cycle services ONE OF THE LARGEST PLANTS FOR THE PRODUCTION OF GREEN HYDROGEN IN EUROPE The plant will produce around 9,000 tons of green hydrogen per year, which will
Slide 12: Successful Milestones Achieved in Battery Division
SUCCESSFUL MILESTONES ACHIEVED IN BATTERY DIVISION Turnkey production equipment for battery cell assembly and cell formation for batteries. Equipment for entire process chain for the production of batteries. Strategically important order intakes in the division battery: • Fraunhofer FFB Münster: Cel
Slide 13: Circular Economy: Textile Recycling Challenge
CIRCULAR ECONOMY: WE EMPOWER THE TACKLING OF THE 92 MILLION TONS TEXTILE RECYCLING CHALLENGE SANKO, a family-owned company in Turkey, excels in spinning recycled fibers and is extending its expertise to textile-to-textile recycling through its RE&UP venture. • Ordered 10 mechanical recycling lines.
Slide 14: Renewable Energy: Intelligent 24/7 Green Energy Supply
RENEWABLE ENERGY INTELLIGENT 24/7 GREEN ENERGY SUPPLY Combines electrical energy production from solar, wind, and pumped storage Pumped storage power plant: • Guaranteed renewable energy supply 24/7 Electricity from solar and wind power is used to pump water up into the upper • Ongoing projects: bas
Slide 15: 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 16: Groundbreaking Autonomous Logyard Crane
GROUNDBREAKING AUTONOMOUS LOGYARD CRANE: AI DRIVEN AND ECO-FRIENDLY LOG HANDLING The world’s first autonomously operated crane • Artificial intelligence allows detailed tracking and classifying of the wood received in real time • Running on electricity, the crane causes zero CO2 emissions and reduce
Slide 17: Customer Service: Success Through Our Life Cycle Solutions
CUSTOMER SERVICE: SUCCESS THROUGH OUR LIFE CYCLE 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. 17 / ANDRITZ / INVESTOR PRESENTATION / APRIL 2024 / © ANDRITZ GRO
Slide 18: "We Care" – Our ESG Program
"WE CARE" – OUR ESG PROGRAM Sustainability is an integrated part of our corporate policy – we are committed to the SBTi (Science Based Targets initiative) to further reduce our greenhouse gas emissions by 2030 E S G ENVIRONMENT SOCIAL GOVERNANCE Reduce our Ensure a safe Pursue fair and CO2 footprint
Slide 19: 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 20: Our Goal Is Zero Occupational Injuries and Illnesses
OUR GOAL IS ZERO OCCUPATIONAL INJURIES AND ILLNESSES TAR G E T 2 0 2 4 Reduce the LTAFR* B Y F U R T H E R 3 0 % t o 1 . 9 We are constantly improving and monitoring our safety performance. • LTAFR reduced from 10.2 in 2016 to 2.7 in 2023 • Have all employees working under ISO 45001 certification •
Slide 21: 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 22: 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 76 Successful acquisitions since 2002 2.1 BEUR Invested in acquisitions 3.6 BEUR Total earnings (EBITA) since 2002 4.8 B
Slide 23: Agenda – Financials
AGENDA 2 F I N AN C I AL S 23 / ANDRITZ / INVESTOR PRESENTATION / APRIL 2024 / © ANDRITZ GROUP
Slide 24: Development of Book-to-Bill Ratio as Key Driver for Sustainable Growth
DEVELOPMENT OF BOOK-TO-BILL RATIO AS KEY DRIVER FOR SUSTAINABLE GROWTH Except for 2020 (Covid), book-to-bill ratio has been around 1 ANDRITZ GROUP – BOOK-TO-BILL RATIO 2019 –2023 PULP & PAPER METALS 1.3 1.3 1.2 1.2 1.2 1.1 1.0 0.9 0.8 0.8 1.2 1.2 1.1 1.0 2019 2020 2021 2022 2023 2019 2020 2021 2022
Slide 25: 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 25 / ANDRITZ / INVESTOR PRESENTATION / APRIL 2024 / © ANDRITZ GROUP
Slide 26: 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% (45%)* 38% 75% (75%)* Service revenue (40%)* 3
Slide 27: EBITA Margin Reported the Third Consecutive Year Above the Group Target
EBITA MARGIN REPORTED THE THIRD CONSECUTIVE YEAR ABOVE THE GROUP TARGET Despite economic and geopolitical challenges (Covid-19; Russian War) EBITA REPORTED (IN MEUR) EBITA MARGIN REPORTED (IN %) 8.5 8.6 8.6 CAGR +21.3% Old 742 Group 649 Target: 5.8 >8% 547 5.1 392 343 2019 2020 2021 2022 2023 2019 2
Slide 28: 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 29: 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 30: Stable and Increasing Dividends
STABLE AND INCREASING DIVIDENDS Strong EPS growth since 2019 and mid-term avg. pay-out ratio at 52 % 10 80.0 70.5 Target to distribute an average of 9 70.0 50%-60% of EPS 8 60.1 7 51.9 55.8 60.0 49.0 48.1 50.3 50.7 48.5 50.0 Consistent dividend growth 6 39.4 5.15 intended 5 4.14 40.0 4 3.28 30.0 Agg
Slide 31: Agenda – Outlook
AGENDA 3 OUTLOOK 31 / ANDRITZ / INVESTOR PRESENTATION / APRIL 2024 / © ANDRITZ GROUP
Slide 32: 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 32 / ANDRITZ / INVESTOR PRESENTATION / APRIL 2024 / © ANDRITZ GROUP
Slide 33: 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 34: Thank You!
INDRITZ G ENGINEERED SUCCESS
Slide 35: 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