Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (June 2023)
31 slides from Andritz's investor presentation, June 2023
Slide 1: ANDRITZ Group: A Global Technology Leader
INVESTOR PRESENTATION ANDRITZ GROUP: A GLOBAL TECHNOLOGY LEADER JUNE 2023
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: WHAT WE ACHIEVE: Empower the circular economy and drive the green transition Sustainable transformation of Large-scale, Sustainable manufacturing state-of-the-art engineering transformation of and services soluti
Slide 4: ANDRITZ in numbers
ANDRITZ IN NUMBERS OVER OVER OVER 29,700 280 40 COUNTRIES EMPLOYEES COMPANIES WORLDWIDE WORLDWIDE 4 / ANDRITZ / INVESTOR PRESENTATION / JUNE 2023 / © ANDRITZ GROUP
Slide 5: Record results in 2022
RECORD RESULTS IN 2022 ORDER INTAKE REVENUE NET INCOME 9.3 billion EUR 7.5 billion EUR 403 MEUR (2021: 7.9 billion EUR / +18%) (2021: 6.5 billion EUR / +17%) (2021: 322 MEUR / +25%) ORDER BACKLOG NET LIQUIDITY EBITA / EBITA MARGIN 10 billion EUR 1 billion EUR 649 MEUR / 8.6% (2021: 8 billion EUR / +
Slide 6: World market leader with four business areas
WORLD MARKET LEADER WITH FOUR BUSINESS AREAS PULP & PAPER METALS HYDRO SEPARATION 47%* 22%* 17%* 14%* Pulp: #1 Forming: #1 #1-3 in sludge dewatering Paper: #3 #1-2 Processing: #1-2 & drying * Share of total Group revenue 2022 # Global market position, estimated by ANDRITZ 6 / ANDRITZ / INVESTOR PRES
Slide 7: A journey of 170 years from a foundry to global technology leadership
A JOURNEY OF 170 YEARS FROM A FOUNDRY TO GLOBAL TECHNOLOGY LEADERSHIP 1852 1922 1948 1951 1997 2000 2001 2006 2013 2018 2022 Established by Foundation Expanded to Start of ANDRITZ Pulp ANDRITZ Hydropower Advanced Fabrics and Battery Josef Körösi as of ANDRITZ big turbines manufacturing China technol
Slide 8: We strengthen market positions
WE STRENGTHEN MARKET POSITIONS Acquisitions by business area since 2000 PULP/PAPER METALS HYDRO SEPARATION 2000 Ahlstrom Machinery 2011 AE&E Austria 2000 Kohler 2006 VA TECH HYDRO 2000 UMT 2000 Lamb Baling Line 2011 Iggesund Tools 2002 SELAS SAS Furnace Div. 2007 Tigép 2002 3SYS 2000 Voith Andritz T
Slide 9: Our strategy: long-term profitable growth
OUR STRATEGY: LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH DIGITALIZATION • Increased revenue • Increased profitability • Increased service share CUSTOMER SERVICE 9 / ANDRITZ / INVESTOR PRESENTATION / JUNE 2023 / © ANDRITZ GROUP
Slide 10: "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 to further reduce our greenhouse gas emissions by 2030 OUR FOCUS E – reduce our CO2 footprint, save resources and develop sustainable technologies S – ensure a safe and viable futu
Slide 11: Well on track to reach our ESG goals
WELL ON TRACK TO REACH OUR ESG GOALS Status end of 2022 ENVIRONMENT SOCIAL GOVERNANCE 50% Share of revenue from sustainable solutions and 30% Reduction in the annual accident frequency rate (>1 85% Procurement volume covered by audited suppliers products day of absence) compared 45% * to the precedi
Slide 12: Redefining the future: unleashing our innovation engine
REDEFINING THE FUTURE: UNLEASHING OUR INNOVATION ENGINE 114 in 2022 for R&D MEUR 392New patent 6,742 Patent protection rights applications in 2022 12 / ANDRITZ / INVESTOR PRESENTATION / JUNE 2023 / © ANDRITZ GROUP
Slide 13: Strong competitive position in long-term growing markets
STRONG COMPETITIVE POSITION IN LONGTERM GROWING MARKETS • PULP & PAPER: market growth driven by demand for cellulosic fibers for packaging, hygiene and also textiles; sustainability goals of the pulp & paper industry urge investments in green solutions • METALS: trends towards carbon-neutral product
Slide 14: Agenda: Financials
AGENDA 2 F I N AN C I AL S
Slide 15: Service business is continuously growing stronger than capital business
SERVICE BUSINESS IS CONTINUOUSLY GROWING STRONGER THAN CAPITAL BUSINESS Supports profitability and reduces fluctuation range GROUP REVENUE Q1 2018 - Q1 2023 (MEUR) GROUP REVENUE 2018 - 2022 (MEUR) CAGR Capital: +7% CAGR Capital: +4% CAGR Service: +13% CAGR Service: +9% 2,500 10,000 1,963 7,543 2,000
Slide 16: Favorable development of EBITA and EBITA margin reported
FAVORABLE DEVELOPMENT OF EBITA AND EBITA MARGIN REPORTED EBITA REPORTED (IN MEUR) EBITA MARGIN REPORTED (IN %) CAGR: +13% 8.6 Group 8.5 649 8.1 Target: >8% 547 6.5 5.8 394 392 5.1 343 159 2018 2019 2020 2021 2022 Q1 2023 2018 2019 2020 2021 2022 Q1 2023 16 / ANDRITZ / INVESTOR PRESENTATION / JUNE 20
Slide 17: EBITA and EBITA margin adjusted continued its strong upward trend
EBITA AND EBITA MARGIN ADJUSTED CONTINUED ITS STRONG UPWARD TREND EBITA ADJUSTED (IN MEUR) EBITA MARGIN ADJUSTED (IN %) CAGR: +12% Group 8.5 8.5 8.2 644 Target: >8% 550 6.9 6.8 7.0 456 471 415 160 2018 2019 2020 2021 2022 Q1 2023 2018 2019 2020 2021 2022 Q1 2023 * EBITA (IN MEUR) / EBITA MARGIN (IN
Slide 18: Stable and recurring service business supports profitability (I)
STABLE AND RECURRING SERVICE BUSINESS SUPPORTS PROFITABILITY (I) Service revenue in Q1 2023 and share of total revenue PULP & PAPER METALS ANDRITZ GROUP 24% (25%) 380 MEUR 42% 102 MEUR (Q1 22: (48%) (Q1 22: 58% 326 MEUR) 88 MEUR) (52%) 76% (75%) 39% Service revenue (41%) 761 MEUR (Q1 22: 626 MEUR) H
Slide 19: Stable and recurring service business supports profitability (II)
STABLE AND RECURRING SERVICE BUSINESS SUPPORTS PROFITABILITY (II) Service revenue in 2022 and share of total revenue PULP & PAPER METALS ANDRITZ GROUP 25% (25%) 1,535 MEUR 44% 409 MEUR (2021: (2021: 56% 1,292 MEUR) (44%) 348 MEUR) (56%) 75% (75%) 40% Service revenue (40%) 2,999 MEUR (2021: 2,608 MEU
Slide 20: Solid financial position
SOLID FINANCIAL POSITION Gross liquidity of ~2.0 billion euros, net liquidity at ~900 million euros Note: Since January 1, 2019, lease liabilities are excluded from the calculation of net liqudity; 2018 adjusted IN MEUR 2,350 Acquisition Xerium: 770 MEUR 2.051 1.974 1.838 1,850 1.719 Strong increase
Slide 21: Key figures Q1 2023 at a glance
KEY FIGURES Q1 2023 AT A GLANCE UNIT Q1 2023 Q1 2022 +/- 2022 Order intake MEUR 2,420.2 2,588.6 -6.5% 9,263.4 Order backlog (as of end of period) MEUR 10,407.8 9,435.1 +10.3% 9,976.5 Revenue MEUR 1,962.6 1,526.9 +28.5% 7,542.9 EBITDA MEUR 200.4 163.4 +22.6% 825.5 Decrease in cash flow EBITDA margin
Slide 22: Pulp & Paper: continued favorable business development
PULP & PAPER: CONTINUED FAVORABLE BUSINESS DEVELOPMENT Strong increase in revenue and earnings; profitability slightly down UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 993.3 1,079.3 -8.0% 4,296.4 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 4,279.5 3,83
Slide 23: Metals: strong increase in order intake and revenue
METALS: STRONG INCREASE IN ORDER INTAKE AND REVENUE Earnings significantly up q/q in line with revenue UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 669.4 501.4 +33.5% 2,008.6 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 2,167.8 1,704.8 +27.2% 1,938.1 Rev
Slide 24: Hydro: good business development
HYDRO: GOOD BUSINESS DEVELOPMENT Revenue and earnings favorably up q/q; solid margin UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 429.3 703.5 -39.0% 1,720.5 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 2,963.6 2,987.4 -0.8% 2,878.4 Revenue MEUR 355.6 247
Slide 25: Separation: very favorable business development
SEPARATION: VERY FAVORABLE BUSINESS DEVELOPMENT Profitability increased q/q UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 328.2 304.4 +7.8% 1,237.9 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 996.9 906.9 +9.9% 952.2 Revenue MEUR 277.3 227.6 +21.8% 1,094.
Slide 26: Agenda: Outlook
AGENDA 3 OUTLOOK
Slide 27: 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, Order intake: 9.3 billion EUR including M&A towards 8 billion EUR Revenue: 7.5 billion EUR EBITA margin at solid 8% 8.6% Net income to increase to >5% 5.3% Continue M&A strategy
Slide 28: ANDRITZ pursues a dividend policy towards continuity
ANDRITZ PURSUES A DIVIDEND POLICY TOWARDS CONTINUITY Goal is to distribute an average of 50%-60% of EPS DIVIDEND PER SHARE (EUR) 2.10 1.55 1.55 1.65 1.50 1.35 1.00 1.00 0.50 0.50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 PAYOUT RATIO (%) 78.1 70.5 49.0 51.9 55.8 60.1 39.4 48.1 50.3 50.7 50%
Slide 29: Market outlook and financial guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Financial guidance 2023 confirmed MARKET OUTLOOK • Project and investment activity in all business areas is expected to continue at good levels • Economic and geopolitical challenges are closely monitored FINANCIAL GUIDANCE FOR 2023 confirmed • ANDRITZ expects t
Slide 30: ANDRITZ Group: A Global Technology Leader
INVESTOR PRESENTATION ANDRITZ GROUP: A GLOBAL TECHNOLOGY LEADER JUNE 2023
Slide 31: Legal disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2023 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