Slide 1: Results Full Year 2022
RESULTS FULL YEAR 2022 MARCH 8, 2023
Slide 2: Agenda: FY 2022 at a glance
AGENDA 1 F Y 2 0 2 2 AT A G L AN C E
Slide 3: Record results in 2022
RECORD RESULTS IN 2022 Financial highlights G R O U P O R D ER IN TA K E GROUP REVENUE EB ITA 9.3 billion EUR 7.5 billion EUR 649 MEUR (2021: 7.9 billion EUR / +18%) (2021: 6.5 billion EUR / +17%) (2021: 547 MEUR / +19%) N ET IN C O ME N ET LIQU IDITY D IVID EN D PER SH A R E* 403 MEUR 1 billion EUR
Slide 4: ESG: well on track to reach goals
ESG: WELL ON TRACK TO REACH GOALS Reduction in green- 50% house gas emissions 30% Reduction in the annual accident frequency rate 85% Procurement volume covered by audited (>1 day of absence) suppliers -39% Status end of 2022 compared to the GOVERNANCE SOCIAL ENVIRONMENT preceding year 82% Status en
Slide 5: Important acquisitions in 2022
IMPORTANT ACQUISITIONS IN 2022 ĐURO ĐAKOVIĆ - supplier of grate boilers and high SOVEMA GROUP - supplier of equipment for the quality pressure parts production of top-quality battery cells • Headquarters: • Headquarters: Slavonski Brod, Croatia Villafranca di Verona, Italy • Employees: approx. 870 •
Slide 6: Manufacturing footprint shifts towards emerging markets
MANUFACTURING FOOTPRINT SHIFTS TOWARDS EMERGING MARKETS Over 50% of direct labour hours in emerging markets SPLIT OF DIRECT LABOUR HOURS BY REGION 81% 59% 60% 56% 54% 53% 47% 49% 51% 44% 46% 41% 40% 19% 2005 2010 2015 2017 2019 2021 2022 Developed World Emerging Markets 6 / ANDRITZ / RESULTS OF THE
Slide 7: Agenda: Performance
AGENDA 2 P E R F O R M AN C E 2 0 2 2
Slide 8: Record order intake
RECORD ORDER INTAKE All four business areas achieved significant increases ORDER INTAKE* ORDER INTAKE BY BUSINESS AREA* ORDER INTAKE BY REGION 2022 VS. 2021 (%) +18% 2022 2021 +/- Pulp & Paper 4,379 3,775 +16% Europe / Emerging Metals 2,009 1,779 +13% North America markets 54% (54%) Hydro 1,956 1,56
Slide 9: Revenue reached new record high
REVENUE REACHED NEW RECORD HIGH Significant increase in all four business areas REVENUE* REVENUE BY BUSINESS AREA* REVENUE SPLIT: CAPITAL / SERVICE 2022 VS. 2021 (%) +17% 2022 2021 +/- Pulp & Paper 3,591 3,071 +17% Metals 1,621 1,366 +19% Service Hydro 1,539 1,345 +14% Capital 40% (40%) 60% (60%) 7,
Slide 10: Growth of service business supported profitability development
GROWTH OF SERVICE BUSINESS SUPPORTED PROFITABILITY DEVELOPMENT SERVICE REVENUE (MEUR) CAGR : +9% 2,999 2,666 2,608 2,443 2,155 36%* 40%* 36%* 40%* 40%* 2018 2019 2020 2021 2022 *Service revenue in % of Group revenue 10 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2022 / MARCH 8, 2023 / © ANDRITZ GRO
Slide 11: Order backlog at favorable 10 billion euros
ORDER BACKLOG AT FAVORABLE 10 BILLION EUROS Excellent workload for 2023 Pulp & Paper and Hydro account for 75% of total order backlog ORDER BACKLOG BY BUSINESS AREA AS OF END OF DECEMBER 2022 (DECEMBER 2021) IN MEUR +22% Separation IN MEUR 10,822 6% 9,859 9,977 9,435 (6%) 8,121 8,166 Pulp & Paper 7,
Slide 12: Record earnings
RECORD EARNINGS All four business areas recorded a significant increase in EBITA EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (ADJUSTED) EBITA (reported) increased slightly more than revenue and reached a +19% +17% new record level. Thus, profitability (reported) increased to 8.6%. 648
Slide 13: Profitability by business area
PROFITABILITY BY BUSINESS AREA EBITA margin (reported, in %) PULP & PAPER METALS HYDRO SEPARATION 11.3 10.8 10.6 9.8 7.1 7.5 11.6* 11.0* 3.8 * 2.8 7.4* 7.0* 1.9* 3.7* 2021 2022 2021 2022 2021 2022 2021 2022 * EBITA margin adjusted by extraordinary items • Pulp & Paper slightly down y/y due to unexpe
Slide 14: EBITDA – net income bridge
EBITDA – NET INCOME BRIDGE Net income achieved Group Target >5.0% IN MEUR 825.5 (718.3)* HYDRO TAX RATE: ~25.6% 648.5 -177.0 (546.5*) 572.7 540.9 (-171.8*) -65.6 -10.2 (479.6*) (-62.1*) (-4.8*) -31.8 (439.6*) (-40.0*) 402.6 -138.3 (321.7*) (-117.9*) 10.9%** 8.6%** 7.6%** 7.2%** 5.3%** EBITDA Depreci
Slide 15: Equity ratio further improved
EQUITY RATIO FURTHER IMPROVED TOTAL SHAREHOLDERS‘ EQUITY (IN MEUR) 1,835 EQUITY RATIO (IN %) 21.7 20.4 21.0 21.2 19.2 17.8 21.6 1,567 16.7 17.3 16.9 1,344 1,325 1,331 1,256 1,216 1,220 5.6* 6.0 5.8 6.2 6.3 6.9 7.2 7.1 7.7 8.5 1,038 929 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 GOODWILL ADJUS
Slide 16: Cash flow from operating activities and free cash flow
CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW IN MEUR 151.1 15.2 252.8 (16.0)* (-17.2)* (238.7)* 710.8 -73.3 -167.2 (529.6)* (-27.8)* (-140.4)* 138.3 526.4 (117.9)* -8.7 -184.4 (369.5)* 402.6 (20.7)* (-160.1)* (-79.0)* (321.7)* Change in NWC: ~434 MEUR increase in contract liabilities (+) ~
Slide 17: Favorable financial position
FAVORABLE FINANCIAL POSITION Gross liquidity of ~2.1 billion euros, net liquidity at ~1 billion euros Note: Since January 1, 2019, lease liabilities are excluded from the calculation of net liqudity; 2018 adjusted IN MEUR Strong increase in net liquidity 2,350 Acquisition Xerium: of ~300 MEUR since
Slide 18: Key figures FY 2022 at a glance
KEY FIGURES FY 2022 AT A GLANCE UNIT 2022 2021 +/- Order intake MEUR 9,263.4 7,879.7 +17.6% Order backlog (as of end of period) MEUR 9,976.5 8,165.8 +22.2% Increase in cash flow mainly Revenue MEUR 7,542.9 6,463.0 +16.7% due change in net working EBITA MEUR 648.5 546.5 +18.7% capital (receipt of adv
Slide 19: Proposed dividend of 2.10 EUR/share
PROPOSED DIVIDEND OF 2.10 EUR/SHARE 2022 payout ratio: ~51% - in line with dividend policy DIVIDEND PER SHARE (EUR) 2.10 * 1.55 1.55 1.65 1.50 1.35 1.10 1.20 1.00 1.00 0.85 0.50 0.55 0.50 0.50 0.50 0.38 0.18 0.25 0.13 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 20: 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 21: Pulp & Paper: very favorable business development
PULP & PAPER: VERY FAVORABLE BUSINESS DEVELOPMENT Order intake, revenue, and EBITA reached new record highs UNIT 2022 2021 +/- ORDER INTAKE BY REGION Order intake MEUR 4,378.7 3,774.7 +16.0% 2022 VS. 2021 (%) Order backlog (as of end of period) MEUR 4,248.4 3,377.2 +25.8% Revenue MEUR 3,591.1 3,070.
Slide 22: Metals: earnings and profitability continued upward trend
METALS: EARNINGS AND PROFITABILITY CONTINUED UPWARD TREND Highest order intake in company history UNIT 2022 2021 +/- ORDER INTAKE BY REGION Order intake MEUR 2,008.6 1,778.8 +12.9% 2022 VS. 2021 (%) Order backlog (as of end of period) MEUR 1,938.1 1,541.7 +25.7% Revenue MEUR 1,621.2 1,366.1 +18.7% E
Slide 23: Hydro: strong increase in order intake and revenue
HYDRO: STRONG INCREASE IN ORDER INTAKE AND REVENUE Earnings and profitability up y/y UNIT 2022 2021 +/- ORDER INTAKE BY REGION Order intake MEUR 1,956.6 1,565.2 +25.0% 2022 VS. 2021 (%) Order backlog (as of end of period) MEUR 3,165.5 2,747.8 +15.2% Revenue MEUR 1,539.0 1,345.1 +14.4% Emerging Europ
Slide 24: Separation: excellent business development
SEPARATION: EXCELLENT BUSINESS DEVELOPMENT Record business year UNIT 2022 2021 +/- ORDER INTAKE BY REGION Order intake MEUR 919.5 761.0 +20.8% 2022 VS. 2021 (%) Order backlog (as of end of period) MEUR 624.5 499.1 +25.1% Revenue MEUR 791.6 681.2 +16.2% Emerging Europe / markets North America EBITDA
Slide 25: Agenda: Outlook
AGENDA 4 OUTLOOK
Slide 26: Group roadmap 2022-2024 well on track
GROUP ROADMAP 2022-2024 WELL ON TRACK Group targets 2022-2024 Status 2022 Group business volume well above 7 billion EUR, 7.5 billion EUR including M&A towards 8 billion EUR EBITA margin at solid 8% 8.6% Net income to increase to >5% 5.3% Continue M&A strategy within Ongoing existing business areas
Slide 27: Market outlook and financial guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Continued good market expectations for all four business areas MARKET OUTLOOK Project and investment activity in all business areas is expected to continue at good levels Economic challenges (Russian sanctions, inflation) are closely monitored FINANCIAL GUIDANCE
Slide 28: Results Full Year 2022
RESULTS FULL YEAR 2022 MARCH 8, 2023