Andritz Ag · VIE:ANDR
Andritz — Q3 2021 Earnings Presentation
24 slides from Andritz's earnings presentation, Nov 5, 2021
Slide 1: Results Q3 2021 / Q1-Q3 2021
ANDRITZ GROUP RESULTS Q3 2021 / Q1 -Q3 2021 NOVEMBER 5, 2021
Slide 2: Agenda
AGENDA 1 Q 3 2 0 2 1 AT A G L AN C E 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2021 / NOVEMBER 5, 2021 / © ANDRITZ GROUP
Slide 3: Q3 2021 at a Glance
Q3 2021 AT A GLANCE Solid business development G R O U P O R D E R I N TAK E E B I TA AT 1 2 7 M E U R ; G R O U P R E V E N U E AT AT AL M O S T 1 . 5 B N E U R O S M AR G I N AT 8 . 4 % , 1.5 BILLION EUROS DOWN Y/Y S I G N I F I C AN T LY U P No large order booked in Q3 2021 Decline of revenue in
Slide 4: Agenda
AGENDA 2 P E R F O R M AN C E Q 3 2 0 2 1 / Q 1 - Q 3 2 0 2 1 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2021 / NOVEMBER 5, 2021 / © ANDRITZ GROUP
Slide 5: Order intake: satisfactory development in Q3 2021, increase in Q1-Q3 2021
ORDER INTAKE: SATISFACTORY DEVELOPMENT IN Q3 2021, INCREASE IN Q1-Q3 2021 VS. LAST YEAR Q1-Q3 2021: Strong increase in Metals more than offsets decline in Pulp & Paper O R D E R I N TAK E O R D E R I N TAK E B Y O R D E R I N TAK E Q3 2021* B U S I N E S S AR E A* Q1-Q3 2021* Q3 2021 Q3 2020 +/- +6%
Slide 6: Quarterly development of order intake
QUARTERLY DEVELOPMENT OF ORDER INTAKE Order intake of last 4 quarters amounted to ~6.4 billion euros ORDER INTAKE SPLIT: CAPITAL / SERVICE Service accounts for roughly 40% of total order intake Q3 2021 (Q3 2020) 2,500 9,000 -14% Capital 59% Service 41% 2,047 2,094 8,000 (69%) (31%) 2,000 1,908 1,853
Slide 7: Lower group revenue mainly due to Pulp & Paper Capital
LOWER GROUP REVENUE MAINLY DUE TO PULP & PAPER CAPITAL Metals down; Hydro stable; Separation up REVENUE REVENUE REVENUE Q3 2021* B Y B U S I N E S S AR E A* Q1-Q3 2021* Q3 2021 Q3 2020 +/- -6% Pulp & Paper 745 852 -13% 4,843 Metals 317 351 -10% 4,549 Hydro 295 305 -3% 1,755 +4% Separation 165 162 +2
Slide 8: Service business by business area
SERVICE BUSINESS BY BUSINESS AREA % of total business area revenue PULP & PAPER METALS 48 51 41 42 41 45 44 24 27 24 29 26 22 23 2016 2017 2018 2019 2020 Q3 2021 Q1-Q3 2016 2017 2018 2019 2020 Q3 2021 Q1-Q3 2021 2021 HYDRO SEPARATION 46 47 48 51 50 42 45 45 40 29 32 34 26 28 2016 2017 2018 2019 2020
Slide 9: Order backlog
ORDER BACKLOG Order backlog at 7.3 billion euros as of end of Q3 2021 Pulp & Paper and Hydro account for roughly 75% of total order backlog ORDER BACKLOG BY BUSINESS AREA AS OF END OF SEPTEMBER 2021 (SEPTEMBER 2020) +0.2% 8,121 D IN MEUR 7,724 7,778 7,925 7,397 7,330 7,404 7,342 6,974 6,849 7,084 7,
Slide 10: Earnings and profitability (reported)
EARNINGS AND PROFITABILITY (REPORTED) Continuing good business development in Pulp & Paper and Separation EBITA (IN MEUR) EBITA (IN MEUR) EBITA MARGIN Q3 2021 (IN %) EBITA MARGIN Q1-Q3 2021 (IN %) Despite decline in revenue, EBITA in +31% Q3 2021 and Q1-Q3 2021 sharply up compared to last year’s ref
Slide 11: Profitability by business area (reported)
PROFITABILITY BY BUSINESS AREA (REPORTED) EBITA margin reported (%) PULP & PAPER METALS HYDRO SEPARATION 11.0 10.6 10.6 10.1 10.0 9.7 9.9 9.4 8.3 7.8 6.4 6.5 4.8 3.7 4.0 2.8 2.5 FY 2020 Q3 2020 Q3 2021 Q1-Q3 Q1-Q3 FY 2020 Q3 2020 Q3 2021 Q1-Q3 Q1-Q3 FY 2020 Q3 2020 Q3 2021 Q1-Q3 Q1-Q3 2020 2021 2020
Slide 12: Earnings and profitability (adjusted)
EARNINGS AND PROFITABILITY (ADJUSTED) Continuing good business development in Pulp & Paper and Separation EBITA (IN MEUR) EBITA (IN MEUR) EBITA MARGIN Q3 2021 (IN %) EBITA MARGIN Q1-Q3 2021 (IN %) +18% EBITA adjusted by extraordinary items 368.4** 8.1%** in Q3 2021 down y/y, profitability up 6.5%**
Slide 13: Profitability by business area (adjusted)
PROFITABILITY BY BUSINESS AREA (ADJUSTED) EBITA margin adjusted (%) PULP & PAPER METALS HYDRO SEPARATION 11.1 10.9 10.9 10.8 10.2 10.0 9.9 9.6 9.4 8.4 7.0 6.3 5.8 5.8 5.3 2.4 2.3 1.5 FY 2020 Q3 2020 Q3 2021 Q1-Q3 Q1-Q3 FY 2020 Q3 2020 Q3 2021 Q1-Q3 Q1-Q3 FY 2020 Q3 2020 Q3 2021 Q1-Q3 Q1-Q3 2020 2021
Slide 14: Q1-Q3 2021: EBITDA – net income bridge
Q1-Q3 2021: EBITDA – NET INCOME BRIDGE 485.5 IN MEUR (404.8)* COMPACT HYDRO 365.0 TAX RATE: ~27.5% (-126.3*) -120.5 (278.5*) (-55.6*) (-4.7*) 315.3 (-26.0*) 290.0 -46.4 -3.3 (218.2*) -25.3 (192.2*) (-57.5*) 210.1 -79.9 (134.7*) EBITDA Depreciation EBITA IFRS 3 Impairment EBIT Financial EBT Income ta
Slide 15: Cash flow from operating activities
CASH FLOW FROM OPERATING ACTIVITIES IN MEUR 170.2 (186.6)* (30.2)* 7.1 435.2 -49.1 (13.9)* (446.1)* 17.0 (-108.8)* 13.3 79.9 (-29.7)* 0.8 (23.1)* (11.4)* -127.2 (0.8)* (57.5)* -31.2 210.1 (-64.7)* 183.7 (134.7)* ~131 MEUR increase in inventories (-) Split of total depreciation: ~94 MEUR increase in
Slide 16: Solid financial position
SOLID FINANCIAL POSITION Gross liquidity of ~1.5 billion euros, net liquidity almost 400 million euros Note: Since January 1, 2019, lease liabilities are excluded from the calculation of net liqudity; 2018 adjusted IN MEUR Schuler 2,350 In addition to the high amount of Xerium 2.048 disposable cash,
Slide 17: Key figures Q3 / Q1-Q3 2021 at a glance
KEY FIGURES Q3 / Q1-Q3 2021 AT A GLANCE UNIT Q3 2021 Q3 2020 +/- Q1-Q3 2021 Q1-Q3 2020 +/- 2020 Order intake MEUR 1,461.0 1,708.0 -14.5% 5,052.8 4,744.7 +6.5% 6,108.0 Order backlog (as of end of period) MEUR 7,341.9 7,330.1 +0.2% 7,341.9 7,330.1 +0.2% 6,774.0 Stable capex at around 2% Revenue MEUR 1
Slide 18: Agenda
AGENDA 3 U P D AT E O F B U S I N E S S AR E AS 18 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2021 / NOVEMBER 5, 2021 / © ANDRITZ GROUP
Slide 19: Pulp & Paper: earnings and profitability up despite decline in revenue
PULP & PAPER: EARNINGS AND PROFITABILITY UP DESPITE DECLINE IN REVENUE Order intake down q/q mainly driven by capital business UNIT Q3 2021 Q3 2020 +/- Q1-Q3 2021 Q1-Q3 2020 +/- 2020 ORDER INTAKE BY REGION Order intake MEUR 602.3 716.5 -15.9% 2,314.6 2,416.3 -4.2% 2,961.1 Q1-Q3 2021 VS. Q1-Q3 2020 (
Slide 20: Metals: positive earnings development continues
METALS: POSITIVE EARNINGS DEVELOPMENT CONTINUES Order intake reached a solid level UNIT Q3 2021 Q3 2020 +/- Q1-Q3 2021 Q1-Q3 2020 +/- 2020 ORDER INTAKE BY REGION Order intake MEUR 362.3 354.6 +2.2% 1,205.9 842.7 +43.1% 1,143.6 Q1-Q3 2021 VS. Q1-Q3 2020 (%) Order backlog MEUR 1,375.7 1,286.6 +6.9% 1,
Slide 21: Hydro: satisfactory business development
HYDRO: SATISFACTORY BUSINESS DEVELOPMENT Order intake down q/q; revenue practically flat; earnings and profitability up UNIT Q3 2021 Q3 2020 +/- Q1-Q3 2021 Q1-Q3 2020 +/- 2020 ORDER INTAKE BY REGION Order intake MEUR 320.8 469.0 -31.6% 975.3 961.4 +1.4% 1,335.4 Q1-Q3 2021 VS. Q1-Q3 2020 (%) Order ba
Slide 22: Separation: very favorable business development
SEPARATION: VERY FAVORABLE BUSINESS DEVELOPMENT Increase in order intake and revenue q/q UNIT Q3 2021 Q3 2020 +/- Q1-Q3 2021 Q1-Q3 2020 +/- 2020 ORDER INTAKE BY REGION Order intake MEUR 175.6 167.9 +4.6% 557.0 524.3 +6.2% 667.9 Q1-Q3 2021 VS. Q1-Q3 2020 (%) Order backlog MEUR 494.3 465.9 +6.1% 494.3
Slide 23: Agenda
AGENDA 4 OUTLOOK 23 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2021 / NOVEMBER 5, 2021 / © ANDRITZ GROUP
Slide 24: Market outlook and financial guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Continued solid market expectations for all four business areas; financial guidance 2021 confirmed MARKET OUTLOOK Project and investment activity in the individual business areas is expected to continue at Q3 2021 levels FINANCIAL GUIDANCE 2021: CONFIRMED • Grou