Andritz Ag · VIE:ANDR
Andritz — Investor Day (January 2024)
25 slides from Andritz's investor day presentation, Jan 24, 2024
Slide 1: Capital Markets Day: Group Financials
ANDRITZ CAPITAL MARKETS DAY GROUP FINANCIALS NORBERT NETTESHEIM CFO JANUARY 24, 2024
Slide 2: Agenda
AGENDA 1 AC H I E V E M E N T S S I N C E C M D 2 0 2 1 2 / ANDRITZ GROUP FINANCIALS / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 3: Favorable order intake development with YoY variations driven by large capital orders
FAVORABLE ORDER INTAKE DEVELOPMENT WITH YOY VARIATIONS DRIVEN BY LARGE CAPITAL ORDERS 9,263 Order Intake in MEUR 8,328 Projects with >100 MEUR order volume 7,880 1,767 have a limited share in the total order intake. 893 7,282 1,213 On average 12.5% of order intake volume 6,646 1,394 results from lar
Slide 4: Revenue target exceeded: over 8 BEUR incl. revenues from newly acquired companies
REVENUE TARGET EXCEEDED: OVER 8 BEUR INCL. REVENUES FROM NEWLY ACQUIRED COMPANIES Revenue in MEUR CAGR +15% CAGR 0% 8,548 7,543 Revenues from acquisitions 6,674 6,700 made in the years 2021 to 2023 6,377 6,463 CAGR +14% 6,039 6,031 5,889 contribute 210 MEUR to total revenues in last 4Q Hence, the re
Slide 5: Capital business contributed significantly to the group's revenue growth
CAPITAL BUSINESS CONTRIBUTED SIGNIFICANTLY TO THE GROUP'S REVENUE GROWTH IN RECENT YEARS Revenue in MEUR CAGR +16% CAGR -2% 5,229 4,479 4,543 4,256 4,108 4,008 CAGR +13% 3,872 3,876 3,855 Revenues from acquisitions made in the years 2021 to 2023 2,558 contributed 170 MEUR to capital revenues in the
Slide 6: Service continuously growing with higher growth rates in recent years
SERVICE CONTINUOUSLY GROWING WITH HIGHER GROWTH RATES IN RECENT YEARS Revenue in MEUR CAGR +13% 3,319 CAGR +5% 3,000 2,666 2,608 2,443 2,155 CAGR +16% 1,898 1,931 2,018 Revenues from acquisitions made in the years 2021 to 2023 contributed 40 MEUR to service revenues in the last 4Q 996 422 2005 2010
Slide 7: All business areas with sizable growth in recent year
ALL BUSINESS AREAS WITH SIZABLE GROWTH IN RECENT YEAR Revenue in MEUR PULP & PAPER 3,952 METALS 3,431 3,238 2,953 2,775 1,994 2,127 1,933 1,936 1,836 1,718 1,598 1,644 1,635 1,637 1,621 1,421 1,366 2015 2016 2017 2018 2019 2020 2021 2022 Last 4Q 2015 2016 2017 2018 2019 2020 2021 2022 Last 4Q HYDROP
Slide 8: Profitability lifted to >8% since 2021
PROFITABILITY LIFTED TO > 8% SINCE 2021 EBITA-margin in % 8.5* 8.5* 8.6* 8.5 8.6 8.6 > 8% 7.5* 7.1* target 8.3* CMD 21 7.5 6.9* 7.3 7.0* Since 2021 no significant non- 6.7 6.5 6.8* operating items after Metals 5.8 restructring was considered as 5.1 non-operating adjustment. EBITA sustainably within
Slide 9: EBITA increased significantly in all business areas – turnaround in Metals achieved
EBITA INCREASED SIGNIFICANTLY IN ALL BUSINESS AREAS – TURNAROUND IN METALS ACHIEVED EBITA in MEUR PULP & PAPER METALS 420 374 335 312 270 224 188 176 193 115 99 70 86 63 28 38 2015 2016 2017 2018 2019 2020 2021 2022 Last 4Q 2015 2016 2017 2018 2019 2020 2021 2022 Last 4Q -47 -74 HYDROPOWER ENVIRONME
Slide 10: Profitability targets mostly (over-)achieved, only Metals not yet in target range
PROFITABILITY TARGETS MOSTLY (OVER-)ACHIEVED, ONLY METALS NOT YET IN TARGET RANGE EBITA-margin in % / Targets: CMD 21 PULP & PAPER METALS 9.6 11.4 10.9 10.6 9.9 10.5 9.7 Target 9.4 9.1 10-11 % 7.2 6.0 Target 4.1 3.9 4.7 6-8% 2.8 1.7 GROUP 2015 2016 2017 2018 2019 2020 2021 2022 Last Target: 2015 201
Slide 11: Based on EBITA margin of >8% net income target of >5% achieved
BASED ON EBITA MARGIN OF >8% NET INCOME TARGET OF >5% ACHIEVED EBITA and net income in MEUR EBITA margin and net income margin in % 8.6% 8.6% 8.5% 5.7% 6.7% 7.3% 7.5% 6.5% 5.8% 5.3% 5.1% 5.0% 732 4.2% 4.6% 4.5% 649 3.6% 3.0% 547 442 444 486 429 394 392 403 343 1.8% 322 270 275 266 220 204 123 2015 2
Slide 12: Return on capital employed significantly improved and well above cost of capital
RETURN ON CAPITAL EMPLOYED SIGNIFICANTLY IMPROVED AND WELL ABOVE COST OF CAPITAL Definition ROCE: 4 500 24.8% 30 EBIT minus taxes/ 21.8% 21.9% 22.0% 23.2% average capital employed 4 000 17.2% 20 (Assets+NWC+Goodwill) 3 500 12.4% 11.0% 10.6% 3 000 10 EBITA increase is the main driver for ROCE improve
Slide 13: Cash flow volatility driven by capital business – strong cash flow through cycle
CASH FLOW VOLATILITY DRIVEN BY CAPITAL BUSINESS – STRONG CASH FLOW THROUGH CYCLE Cash flow volatility is driven by working capital fluctuations during regular "order to cash cycle“ in capital business – average free cash flow 2015-2022 at 280 MEUR 822 2022 CF impacted from NWC Cash Flow in MEUR 711
Slide 14: On a 3-year average view earnings are turned reliably into cash
ON A 3-YEAR AVERAGE VIEW EARNINGS ARE TURNED RELIABLY INTO CASH EBITA and operating cash flow 3-year rolling average in MEUR EBITA 3-YEAR ROLLING AVERAGE OPERATING CASH FLOW 3-YEAR ROLLING AVERAGE 642 604 529 567 547 438 427 427 417 430 394 376 324 359 296 264 205 207 2015 2016 2017 2018 2019 2020 2
Slide 15: Solid financial position maintained
SOLID FINANCIAL POSITION MAINTAINED 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 of Schuler Acqu
Slide 16: High profitability led to significantly increased equity
HIGH PROFITABILITY LED TO SIGNIFICANTLY INCREASED EQUITY 2 BEUR equity combined with a sizable net-liquidity ensures sufficient robustness of the balance sheet to take and execute high-volume capital projects TOTAL SHAREHOLDERS' EQUITY (IN MEUR) EQUITY RATIO (IN %) 21.0 21.7 21.2 21.6 23.7 1,996 19.
Slide 17: Shareholders benefitted from favourable dividend growth in recent years
SHAREHOLDERS BENEFITTED FROM FAVOURABLE DIVIDEND GROWTH IN RECENT YEARS DIVIDEND PER SHARE (EUR) 2.10 1.50 1.55 1.55 1.50 1.35 1.00 0.50 2015 2016 2017 2018 2019 2020 2021 2022 PAYOUT RATIO (%) 53.3% average payout ratio 70.5 51.9 55.8 60.1 39.4 48.1 50.0 50.7 2015 2016 2017 2018 2019 2020 2021 2022
Slide 18: CMD 21 targets achieved
CMD 21 TARGETS ACHIEVED GROUP TARGETS 2021-2023 STATUS L4Q Group business volume well above 7 billion Order intake: 8.3 billion EUR EUR, including M&A towards 8 billion EUR Revenue: 8.5 billion EUR EBITA margin at solid 8% 8.6% Net income to increase to >5% 5.7% Continue M&A strategy within 11 acqui
Slide 19: Agenda: New targets
AGENDA 2 N E W TAR G E T S 19 / ANDRITZ GROUP FINANCIALS / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 20: Group revenue to exceed 10 BEUR by 2026, with continued growth in all business areas
GROUP REVENUE TO EXCEED 10 BEUR BY 2026, WITH CONTINUED GROWTH IN ALL BUSINESS AREAS Revenue in MEUR Growth Ambition: PULP & PAPER CAGR > 5% METALS 3,952 3,431 3,238 Growth Ambition: 2,953 2,775 CAGR > 5% 1,994 1,933 1,936 2,127 1,836 1,718 1,598 1,644 1,635 1,637 1,621 1,421 1,366 GROUP Target: Rev
Slide 21: Raised EBITA targets for all business areas except Metals – new group target >9%
RAISED EBITA TARGETS FOR ALL BUSINESS AREAS EXCEPT METALS – NEW GROUP TARGET: >9% EBITA-margin in % PULP & PAPER METALS 11.4 10.9 Target (rev) 10.5 10.6 9.4 9.1 9.9 9.7 9.6 11-13% (previous 10-11%) 7.2 6.0 Target 4.1 4.7 6-8% 3.9 2.8 1.7 New 2015 2016 2017 2018 2019 2020 2021 2022 Last 4Q GROUP 2015
Slide 22: Net income >6% and average cash conversion rate around 1 allows growing dividend
NET INCOME >6% AND AVERAGE CASH CONVERSION RATE AROUND 1 ALLOWS GROWING DIVIDEND • Target Net income >11.0% > 9.0% < -1% >8.0% ~0.0% >8.0% ~2.0% >6.0% margin: >6% ~ -2.0% • Cash conversion rate (net income to free cash-flow) mid-term avg. near to 1 CCR near to 1 2.1 • Stable and 1.5 1.6 1.6 1.5 1.4
Slide 23: New financial targets ANDRITZ Group
NEW FINANCIAL TARGETS ANDRITZ GROUP 2026 GROWTH Revenue before new major acquisitions > 10 BEUR CASH CONVERSION RATE CCR ~1 EBITA PROFITABILITY >9% STABLE AND INCREASING 50-60% DIVIDENDS of EPS NET INCOME MARGIN NI >6% 23 / ANDRITZ GROUP FINANCIALS / CAPITAL MARKETS DAY, JANUARY 24, 2024
Slide 24: Questions?
QUESTIONS?
Slide 25: 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