Slide 1: Results for Q2 / H1 2018
RESULTS FOR Q2 / H1 2018 ANDRITZ GROUP AUGUST 2, 2018
Slide 2: Q2 2018 at a Glance
Q2 2018 AT A GLANCE Solid business development • Favorable development of Group order intake, reaching more than EUR 1.7 billion; increases in all four business areas. • High order intake in Pulp & Paper driven by strong order intake for plants for energy production from biomass and sewage sludge. •
Slide 3: Strong Order Intake in Q2 2018 with Increases in All Business Areas
STRONG ORDER INTAKE IN Q2 2018 WITH INCREASES IN ALL BUSINESS AREAS Very high order intake for plants that produce energy from biomass / sewage sludge. ORDER INTAKE (MEUR) ORDER INTAKE BY BUSINESS AREA (MEUR) +18% H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 3,269 Hydro 753 514 +47% 318 205 +56% 2,771 Pu
Slide 4: Sales Increase in Q2 Practically Fully Offsets Q1 Sales Decline
SALES INCREASE IN Q2 PRACTICALLY FULLY OFFSETS Q1 SALES DECLINE Solid development of Pulp & Paper and Separation. SALES (MEUR) SALES BY BUSINESS AREA (MEUR) -1% H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 2,779 2,763 Hydro 724 725 -0% 375 369 +2% Pulp & Paper 1,010 991 +2% 551 482 +14% Q2: Q2: Metals 74
Slide 5: Solid Earnings Development in Q2 2018, However …
SOLID EARNINGS DEVELOPMENT IN Q2 2018, HOWEVER … Favorable development of Pulp & Paper, Metals unsatisfactory. EBITA (MEUR) Q2 2018: 109.9* -14% • EBITA, at 94.6 MEUR, up by over 9% compared to the adjusted (positive one- off effect of ~25 MEUR) Q2 2017 EBITA (86.5 MEUR) due to higher sales and Extr
Slide 6: … H1 2018 Down Compared to Last Year's Reference Period Due to Weak Q1 2018
… H1 2018 DOWN COMPARED TO LAST YEAR‘S REFERENCE PERIOD DUE TO WEAK Q1 2018 EBITA (MEUR) H1 2018: • EBITA, at 166.3 MEUR, 9% below the adjusted EBITA (182.3 MEUR) due to 207.3* -20% weak Q1 2018 which was impacted by lower sales and cost overruns in Metals. Extra- ordinary • Including one-off effect
Slide 7: Earnings and Profitability by Business Area
EARNINGS AND PROFITABILITY BY BUSINESS AREA EBITA (MEUR) and EBITA margin (%). HYDRO PULP & PAPER METALS SEPARATION including a positive 92.9 one-off effect of ~25 MEUR 84.7 67.3 9.2% 8.5% 8.5% 43.2 43.4 6.0% 6.0% 17.7 5.3%* 12.1 12.3 2.4% 4.5% 4.3% H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 H1
Slide 8: Group Order Backlog Up Compared to End of 2017 Due to Rising Order Intake Trend
GROUP ORDER BACKLOG UP COMPARED TO END OF 2017 DUE TO RISING ORDER INTAKE TREND ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) -0% +7% 7,324 6,789 6,849 6,841 6,383 2015 2016 H1 2017 2017 H1 2018 ORDER BACKLOG BY BUSINESS AREA (AS OF END OF PERIOD; IN MEUR) HYDRO AND PULP & PAPER ACCOUNT FOR 71% OF TO
Slide 9: Key Figures Q2 2018 / H1 2018 at a Glance
KEY FIGURES Q2 2018 / H1 2018 AT A GLANCE UNIT H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 2017 Decrease mainly due to lower Order intake MEUR 3,269.3 2,771.3 +18.0% 1,736.5 1,211.3 +43.4% 5,579.5 interest result: • lower average net liquidity, Order backlog (as of end of period) MEUR 6,841.1 6,849.1 -0
Slide 10: Hydro (1): Unchanged Challenging Market Environment
HYDRO (1): UNCHANGED CHALLENGING MARKET ENVIRONMENT Selective award of individual projects. ANDRITZ supplied is contributing to China’s equipment clean for the energy pumped storage • New hydropower plants transition with hydropower plant pumped Shi Shan storage Ling, power China.technology. Some ne
Slide 11: Hydro (2): Order Intake Up from Very Low Level of Last Year
HYDRO (2): ORDER INTAKE UP FROM VERY LOW LEVEL OF LAST YEAR Solid development of earnings and profitability. UNIT H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 2017 Order intake significantly up from very low level of last Order intake MEUR 753.1 514.0 +46.5% 318.3 204.5 +55.6% 1,317.2 year’s reference pe
Slide 12: Pulp & Paper (1): Continuation of Solid Market Environment
PULP & PAPER (1): CONTINUATION OF SOLID MARKET ENVIRONMENT The ANDRITZ recovery boiler at APP’s OKI mill is the • Pulp world’s largest boiler today. Good project activity, particularly for modernization of existing pulp mills. No contracts were awarded for greenfield pulp mills. • Paper Satisfactory
Slide 13: Pulp & Paper (2): Very Favorable Business Development
PULP & PAPER (2): VERY FAVORABLE BUSINESS DEVELOPMENT Strong increase in order intake, earnings, and profitability in Q2 2018. UNIT H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 2017 Order intake significantly up, mainly due to several orders Order intake MEUR 1,180.9 1,124.9 +5.0% 723.4 471.6 +53.4% 2,03
Slide 14: Metals (1): Satisfactory Project and Investment Activity
METALS (1): SATISFACTORY PROJECT AND INVESTMENT ACTIVITY Solid market environment in both Metal Forming and Metals Processing. ANDRITZ annealing furnace in a cold strip annealing • Metal Forming and pickling line. Satisfactory project and investment activity; some important orders were awarded by in
Slide 15: Metals (2): Earnings and Profitability Significantly Lower
METALS (2): EARNINGS AND PROFITABILITY SIGNIFICANTLY LOWER Unsatisfactory business development due lower sales and cost overruns on some projects. Significant increase in order intake both in Metal Forming UNIT H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 2017 (Schuler) and Metals processing. Order intak
Slide 16: Separation (1): Good Project and Investment Activity Continued
SEPARATION (1): GOOD PROJECT AND INVESTMENT ACTIVITY CONTINUED Mainly for solid/liquid separation equipment. • Municipal Investment activity at good levels (sewage sludge drying). • Industrial Good project activity in mining and minerals (especially the lithium market) as well as in chemicals (petro
Slide 17: Separation (2): Favorable Development of Order Intake
SEPARATION (2): FAVORABLE DEVELOPMENT OF ORDER INTAKE Earnings and profitability practically at unchanged levels. Significant increase in order UNIT H1 2018 H1 2017 +/- Q2 2018 Q2 2017 +/- 2017 intake in Q2 2018, primarily due to a large order in China Order intake MEUR 388.6 318.2 +22.1% 215.9 163.
Slide 18: Outlook for Remainder of 2018 Unchanged
OUTLOOK FOR REMAINDER OF 2018 UNCHANGED Good project activity on markets served by ANDRITZ. Hydro Pulp & Paper Metals Separation stable + stable + stable + stable + • Project activity for modernizations • Project and investment activity to • Project activity in Metal Forming • Reasonable market acti
Slide 19: Disclaimer
DISCLAIMER 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 contracts that may be co