Andritz Ag · VIE:ANDR
Andritz — Investor Day (January 2024)
35 slides from Andritz's investor day presentation, Jan 24, 2024
Slide 1: ANDRITZ Capital Markets Day: Hydropower
ANDRITZ CAPITAL MARKETS DAY HYDROPOWER FRÉDÉRIC SAUZE EXECUTIVE BOARD MEMBER JANUARY 24, 2024
Slide 2: Agenda: Introduction
AGENDA 1 INTRODUCTION 2 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 3: Hydropower
HYDROPOWER Securing the global electricity production and supporting the green energy transition ANDRITZ HYDROPOWER • One of the world's leading suppliers of electromechanical equipment and services for hydropower stations • 180 years of experience • 470 GW of installed or refurbished capacity • We
Slide 4: Strong position in all business segments
STRONG POSITION IN ALL BUSINESS SEGMENTS LARGE HYDRO COMPACT HYDRO SERVICE & REHAB OTHERS 48% 4% 40% 8% 626 MEUR* 55 MEUR* 531 MEUR 100 MEUR #1-2 #2-3 #1 Hydro- and electro-mechanical equipment for World's leading provider for small Service and rehabilitation solutions to Turbo generators for therma
Slide 5: Regional split of employees & revenue
HYDROPOWER Regional split of employees & revenue 11% 4% 7% 28% 17% Total 46% Revenue 29% 6,100* split** 26% 32% Europe Asia Europe Asia North America South America North America South America Africa 6,100 EMPLOYEES: • 48% Technology, engineering, project management (incl. site staff) • 17% Sales and
Slide 6: A quick product overview at a glance
A QUICK PRODUCT OVERVIEW AT A GLANCE 6 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 7: Agenda: Our sustainability products
AGENDA 2 O U R S U S TAI N AB I L I T Y P R O D U C T S 7 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 8: Our contribution to sustainability
OUR CONTRIBUTION TO SUSTAINABILITY How can ANDRITZ contribute to climate neutrality and climate protection with our products? Low-carbon and emission-free • ANDRITZ with its globally installed fleet of turbines and generators contributes to global CO2 emission savings with about 700 million tons/yea
Slide 9: Agenda: Market development / frame conditions
AGENDA 3 M AR K E T D E V E L O P M E N T / F R AM E C O N D I T I O N S 9 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 10: COP 28: The biggest step forward for renewables since Paris Agreement
COP 28: “THE BIGGEST STEP FORWARD FOR RENEWABLES SINCE THE 1.5°C PARIS AGREEMENT” The pledge to triple the global renewables power capacity to 2030 was included in the final text at COP28. This goal cannot be delivered without sustainable hydropower, which provides the flexibility and storage for va
Slide 11: Hydropower market growth by segment
HYDROPOWER LARGE HYDRO COMPACT HYDRO SERVICE & REHAB OTHERS Underlying mid-term 2-3% 2% 3% 3% market growth Current strong regional Asia, Australia, Asia Europe, Africa Europe and North America markets North America (Large Rehab), Europe Special growth Middle East, Pumped Large compact Digitalizatio
Slide 12: Success story of renewables
SUCCESS STORY OF RENEWABLES 9.6% record growth in renewables achieved in 2022 Capacities (GW) Generation (TWh) including pumped storage capacity Source: IRENA, Renewable capacity statistics 2023 Source: IEA, Renewables 2022 - Analysis and forecast to 2027 12 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DA
Slide 13: Increasing market for electromechanical equipment
INCREASING MARKET FOR ELECTROMECHANICAL EQUIPMENT • Market growth influenced by presence/absence of large-scale projects (>100 MEUR) • Stable "Basis" volume, around 4-5 BEUR, excluding large projects • Strong post-COVID recovery and growth across all project sizes Basic E&M Market and Large Projects
Slide 14: Agenda: Strategic direction
AGENDA 4 S T R AT E G I C D I R E C T I O N 14 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 15: Booming greenfield market
BOOMING GREENFIELD MARKET Globally existing carbon free target programs boosting green field hydropower • Overall market for greenfield has developed worldwide in line with the tendencies of the last years • More and more being on the top governmental priorities worldwide • Global demand of green hy
Slide 16: Growing pipeline for greenfield projects
GROWING PIPELINE FOR GREENFIELD PROJECTS …with a growing share of pumped storage projects Hydropower project pipeline, 2022-2037 Conventional Pumped storage hydropower focused on focused on Asia, Europe Asia, South America and North America and Africa Source: IRENA; 2023; The changing role of hydrop
Slide 17: Greenfield market
GREENFIELD MARKET Market potentials Europe Pumped storage and Central Asia and China standard compact Pumped storage and conventional North America projects Pumped storage (grid support) India and Southeast Asia Pumped storage, conventional Latin America projects, and standard/complex Conventional p
Slide 18: Flexibility needs are increasing
FLEXIBILITY NEEDS ARE INCREASING IEA categories for the integration of Variable Renewable Energy (VRE) • “Phase assessment framework” of six different phases • Phase 1: No noticeable impact from VRE at the system level • Phase 2: 5-10% VRE share Evolution of countries’ VRE integration phases • Phase
Slide 19: Grid and supply security
GRID AND SUPPLY SECURITY More renewables require more storage, flexibility, inertia, short circuit power, reactive power, ... Pumped Storage Synchronous Condensers (SynCon) Hybrid Systems • Large energy storage systems for grid balancing • Fast growing worldwide SynCon market • PSP + wind + photo vo
Slide 20: Pumped storage
PUMPED STORAGE Large energy storage systems for grid balancing Balances volatility of energy demand by providing flexibility as well as long and short duration storage capacity Growing worldwide market (China, India, Australia, Southeast Asia, Europe, Middle East, North America) Doubling of global p
Slide 21: Synchronous condensers
SYNCHRONOUS CONDENSERS An effective solution for the new requirements of the grid A synchronous machine which is operated to: • Providing inertia – improving stability • Dynamic voltage support – overload capability • Short circuit power – essential for system protection • Reactive power – still an
Slide 22: Hybrid integrated power plants
HYBRID INTEGRATED POWER PLANTS The World’s first dispatchable renewable energy hub in Australia New energy concepts based on hybrid solutions balancing the energy before stressing the grid • combination of a solar and wind power station with a pumped storage plant Australia • 50 MW Solar (existing)
Slide 23: Growing brownfield and modernization market
GROWING BROWNFIELD AND MODERNIZATION MARKET Global increase in volume and share Market Development Greenfield / Brownfield NEW REHAB 6,183 6,265 Contract Value (MEUR) 5,638 5,705 REHAB 5,146 5,109 5,178 1,951 4,766 4,740 46% 2,499 4,122 2,377 2,501 2,109 2,658 3,201 53 billion EUR 2,514 2,441 1,899
Slide 24: Digital O&M and asset management
CUSTOMER CENTRIC OPERATION & MAINTENANCE DIGITAL O&M SUPPORTED BY DIGITAL SOLUTIONS AND ASSET MANAGEMENT Operation & Maintenance Predictive Maintenance Metris DiOMera digital platform 24 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 25: Automation and digitalization
AUTOMATION AND DIGITALIZATION SEAMLESS AND SECURE ACCESS WITH MODERN DIGITAL SOLUTIONS Integrated Automation Digital Operation & Maintenance Cyber Security 25 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 26: Global service offer
GLOBAL SERVICE OFFER TROUBLE SHOOTING SPARE PARTS MANAGEMENT TRAINING DIAGNOSTIC AND SYSTEM REHAB PREVENTIVE MAINTENANCE 26 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 27: Our global service network
OUR GLOBAL SERVICE NETWORK A strong partner nearby Naelden Jevnaker Tampere Glasgow Almaty Tbilisi Paris Point Claire Spokane Kriens Wien, Linz Hanoi Peterborough Weiz Islamabad Chengdu Vevey Izmir Beijing Kathmandu Charlotte Schio Porto Prithla Manila Morelia Foshan Madrid Chhukha Bhopal Bogota Kua
Slide 28: Agenda: Financials
AGENDA 5 F I N AN C I AL S 28 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 29: Order intake
ORDER INTAKE Order intake is growing with the growing hydropower market IN MEUR 1,720 1,721 123 157 39 80 1,383 1,266 79 47 48 1,137 1,129 682 562 126 53 57 70 60 484 Others 461 Compact Hydro 410 550 Service & Rehab Large Hydro 876 923 773 630 602 465 2018 2019 2020 2021 2022 Last 4Q 29 / ANDRITZ HY
Slide 30: Hydropower financial development
HYDROPOWER FINANCIAL DEVELOPMENT FINANCIAL OVERVIEW REVENUE BY SEGMENT in MEUR 2018 2019 2020 2021 2022 last 4Q 720 Order Intake 1,266 1,137 1,129 1,383 1,720 1,721 626 526 Large Hydro 561 Order backlog (as of end of period) 2,350 2,228 2,282 2,467 2,878 3,289 651 Revenue 1,287 1,264 1,100 1,132 1,3
Slide 31: Financial targets & ambitions
FINANCIAL TARGETS & AMBITIONS Revenue (in MEUR) EBITA margin (in %) Growth Ambition: CAGR >5% Target (rev) 6.9 7-9% 1,496 (previous 7-8.5%) 6.1 1,287 1,264 1,313 5.6 5.5 5.3 1,100 1,132 3.4 2018 2019 2020 2021 2022 Last 4Q 2026 2018 2019 2020 2021 2022 Last 4Q 31 / ANDRITZ HYDROPOWER / CAPITAL MARKE
Slide 32: Agenda: Outlook
AGENDA 6 OUTLOOK 32 / ANDRITZ HYDROPOWER / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 33: Well positioned for profitable business development
WELL POSITIONED FOR PROFITABLE BUSINESS DEVELOPMENT • Order intake is growing with the growing hydropower market • Pipeline for greenfield projects is additionally increasing due to the flexibility and storage capability function of hydropower in an energy system with volatile renewables • Higher el
Slide 34: Questions?
QUESTIONS?
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”), and no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales c