Andritz Ag · VIE:ANDR
Andritz — Investor Day (January 2024)
26 slides from Andritz's investor day presentation, Jan 24, 2024
Slide 1: Andritz Capital Markets Day
ANDRITZ CAPITAL MARKETS DAY ANDRITZ GROUP JOACHIM SCHÖNBECK PRESIDENT & CEO JANUARY 24, 2024
Slide 2: Agenda
AGENDA 1 W H O W E AR E 2 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 3: Providing technologies and serving our customers
PROVIDING TECHNOLOGIES AND SERVING OUR CUSTOMERS WHAT WE DO: Large-scale, state-of-the-art engineering solutions Elevating customer operations with advanced technologies Empowering our customers to drive the green transition Supporting our customers´ operations with life-cycle services 3 / ANDRITZ G
Slide 4: World market leader within our four strong business areas
WORLD MARKET LEADER WITHIN OUR FOUR STRONG BUSINESS AREAS ANDRITZ GROUP last 4 quarters (Q4 22 – Q3 23) Order Intake 8,328 MEUR Backlog 10,361 MEUR Revenue 8,548 MEUR EBITA 732 MEUR PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 46%* 21% 18% 15% Revenue 3,952 MEUR Revenue 1,836 MEUR Revenue 1,4
Slide 5: New business area Environment & Energy as of January 1, 2024
NEW BUSINESS AREA ENVIRONMENT & ENERGY AS OF JANUARY 1, 2024 ANDRITZ has re-organized its businesses providing various technologies for Environmental applications and Energy transformation across multiple industries in one new Business Area Environment & Energy. The Environment & Energy business are
Slide 6: Change in reporting structure
CHANGE IN REPORTING STRUCTURE Continued adjustment of ANDRITZ product portfolio according to markets and business model • The Green Hydrogen Division and Clean Air Technologies Division will be reported in the Environment & Energy Business Area as of January 1, 2024. • All reference figures of the C
Slide 7: Serving several industries with one business model enabled by a strong balance sheet
SERVING SEVERAL INDUSTRIES WITH ONE BUSINESS MODEL ENABLED BY A STRONG BALANCE SHEET • Engineering business based on own technologies combined with strong life-cycle services • Large and complex capital projects require a strong balance sheet • Different industry cycles contain risks and improve ada
Slide 8: Close to our customers, in more than 80 countries
CLOSE TO OUR CUSTOMERS, IN MORE THAN 80 COUNTRIES OVER AROUND OVER OVER 30,000 280 80 COUNTRIES EMPLOYEES LOCATIONS COUNTRIES WORLDWIDE 8 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 9: The diverse ANDRITZ team services customers around the globe
THE DIVERSE ANDRITZ TEAM SERVICES CUSTOMERS AROUND THE GLOBE 30,000 REVENUE BY REGION LAST 4Q Around Rest of the world 4% employees within the ANDRITZ GROUP Europe Asia Approx. 64% white-collar and 29% 28% 36% blue-collar Asia (without China) Africa, Australia South America North America >33% are wo
Slide 10: Strong manufacturing strategy: growth in emerging markets only
STRONG MANUFACTURING STRATEGY: GROWTH IN EMERGING MARKETS ONLY Over 50% of direct labour hours in emerging markets SPLIT OF MANUFACTURING HOURS BY REGION In thousand manufacturing hours 8,400 7,848 7,896 7,376 7,600 6,877 52% 48% 52% 48% 5,753 4,789 58% 42% 4,170 3,697 59% 41% 53% 47% 2,593 622 81%
Slide 11: "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 (science based targets initiative) to further reduce our greenhouse gas emissions by 2030 E S G ENVIRONMENT SOCIAL GOVERNANCE Reduce our Ensure a safe Pursue fair and CO2 footprint
Slide 12: Well on track to reach our ESG goals by the end of 2025
WELL ON TRACK TO REACH OUR ESG GOALS BY THE END OF 2025 ENVIRONMENT SOCIAL GOVERNANCE 50% Share of revenue from sustainable solutions and 20% Share of women in the workforce 85% Procurement volume covered by audited suppliers products 45% * 16.4%* 82%* 10% Reduction in water consumption 30% Reductio
Slide 13: We expand our portfolio in all business areas
WE EXPAND OUR PORTFOLIO IN ALL BUSINESS AREAS Acquisitions by business area since 2002 PULP & PAPER METALS HYDRO ENVIRONMENT & ENERGY 2002 ABB Drying 2012 AES 2002 SELAS SAS Furnace Div. 2006 VA TECH HYDRO 2002 3SYS 2003 IDEAS Simulation 2013 MeWa 2004 Kaiser 2007 Tigép 2003 Fiedler 2003 Acutest Oy
Slide 14: Proven value creation through strategic acquisitions
PROVEN VALUE CREATION THROUGH STRATEGIC ACQUISITIONS Clear acquisition strategy • Complimentary business in our industries • Retain the management • No acquisitions of competitors 76 Successful acquisitions since 2002 2.1 BEUR Invested in acquisitions 3.6 BEUR Total earnings (EBITA) since 2002 4.8 B
Slide 15: Agenda
AGENDA 2 M AR K E T 15 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 16: Exceptional growth opportunities in all business areas
EXCEPTIONAL GROWTH OPPORTUNITIES IN ALL BUSINESS AREAS PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY Underlying mid-term 2-3% 2-3% 2-3% 4-5% market growth Current strong regional South America and Asia Asia and North America Asia, Australia, North Europe and North America markets America, Euro
Slide 17: Agenda
AGENDA 3 S T R AT E G Y 17 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 18: Our strategy: long-term profitable growth
OUR STRATEGY: LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH DIGITALIZATION • Grow revenue • Grow profitabilty • Grow service share CUSTOMER SERVICE 18 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 19: Redefining the future: unleashing our innovation engine
REDEFINING THE FUTURE: UNLEASHING OUR INNOVATION ENGINE 138 in 2023* for R&D MEUR 370New patent 6,510 Patent protection rights applications in 2023 19 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024 * Forecast 2023
Slide 20: Enabling fast track innovation through structured venture program since 2018
ENABLING FAST TRACK INNOVATION THROUGH STRUCTURED VENTURE PROGRAM SINCE 2018 Move fast and create innovations Explore new opportunities close to ANDRITZ strategic core business Create successful new business Inspire intrapreneurs and develop employees 20 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUA
Slide 21: We are capable to commercialise innovative inhouse developments
WE ARE CAPABLE TO COMMERCIALISE INNOVATIVE INHOUSE DEVELOPMENTS QUOTATION CONSTRUCTION OPERATION Green Hydrogen Alkaline PEM Carbon Capture Amin Membrane Textile recycling Mechanical Chemical Battery Lab and pilot lines Giga-factories Bio-Methanol Kraftanol purification Synthesis SulfoLoop 21 / ANDR
Slide 22: Metris - the open and scalable digital platform
METRIS - THE OPEN AND SCALABLE DIGITAL PLATFORM The foundation for autonomous operation PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY Cyber Security built in Asset Process Plant optimization optimization management Latest Gen.AI Autonomous models leveraged Smart products Metris X (soft PLC) Si
Slide 23: Customer service: success through our lifecycle solutions
CUSTOMER SERVICE: SUCCESS THROUGH OUR LIFECYCLE SOLUTIONS We service our customers at every step, ensuring them high product quality, output and uptime through quick response time and cost-competitive efficient life cycle solutions. 23 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 24: On growth path with a solid and high cash generating service foundation
ON GROWTH PATH WITH A SOLID AND HIGH CASH GENERATING SERVICE FOUNDATION Revenue in MEUR Total CAGR 7.0% Service CAGR 9.7% Capital CAGR 5.7% 8,548 7,543 6,700 Stable capital business on group level 6,463 • Investment cycles stabilized on group level 5,229 4,543 • Green transition enables growth with
Slide 25: Group targets 2024-2026
GROUP TARGETS 2024-2026 • Continue Growth to >10bn revenues • EBITA margin to increase to >9% • Net income to increase to >6% • Continue successful M&A strategy with focus on service and digitalization • Overachieve ESG targets 25 / ANDRITZ GROUP / CAPITAL MARKETS DAY / JANUARY 24, 2024
Slide 26: 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