Slide 1: Results for 2019
RESULTS FOR 2019 ANDRITZ GROUP MARCH 4, 2020
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 FY 2019 AT A GLANCE PERFORMANCE FY 2019 AND 02 MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2019 / MARCH 4, 2020 / © ANDRITZ GROUP
Slide 3: FY 2019 at a Glance
FY 2019 AT A GLANCE Record order intake and sales, decline of earnings due to restructuring measures • Group order intake, at 7.3 billion euros, reaches new record high driven by Pulp & Paper which booked some large greenfield pulp mill orders as well as orders for recovery and power boilers • Ord
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 FY 2019 AT A GLANCE PERFORMANCE FY 2019 AND 02 MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2019 / MARCH 4, 2020 / © ANDRITZ GROUP
Slide 5: Record Order Intake
RECORD ORDER INTAKE Strong development of Pulp & Paper more than compensates decline in Metals and Hydro ORDER INTAKE (IN MEUR) +10%, thereof 3%-points organic 7,282 6,646 ORDER INTAKE BY BUSINESS AREA (IN MEUR) 2019 2018 +/- Pulp & Paper 3,633 2,572 +41% Metals 1,582 1,932 -18% Hydro 1,350 1,446 -7
Slide 6: High Order Intake in Q2/19 and Q3/19 Due to Large Orders in Pulp & Paper
HIGH ORDER INTAKE IN Q2/19 AND Q3/19 DUE TO LARGE ORDERS IN PULP & PAPER Emerging markets account for 46% of total order intake ORDER INTAKE BY REGION MEUR MEUR 2019 IN % 2,500 2,250 2,094 10,000 1,908 2,047 2,000 1,737 1,658 8,000 1,431 1,470 1,532 1,560 1,467 1,533 1,469 1,483 3% 1,500 1,149 1,188
Slide 7: Group Sales Reach New Record High
GROUP SALES REACH NEW RECORD HIGH Strong increase in Pulp & Paper due to high order intake and sales contribution from Xerium SALES (IN MEUR) +11%, thereof 3%points organic 6,674 6,032 SALES BY BUSINESS AREA (IN MEUR) 2019 2018 +/- Pulp & Paper 2,869 2,233 +28% Metals 1,637 1,635 +0% Hydro 1,471 1,5
Slide 8: Service Business Continues to Grow – Solid Development of Xerium
SERVICE BUSINESS CONTINUES TO GROW – SOLID DEVELOPMENT OF XERIUM Quarterly development of service sales (in MEUR) +8% 800 757 2,800 702 671 700 651 2,600 558 560 594 587 600 514 511 482 2,400 461 470 437 465 468 465 469 500 403 428 2,200 400 2,000 300 1,800 200 100 1,600 0 1,400 Q1 15 Q2 15 Q3 15 Q4
Slide 9: Service Business by Business Area
SERVICE BUSINESS BY BUSINESS AREA % of total business area sales PULP & PAPER METALS 48 51 ANDRITZ Fabrics and Rolls provides machine clothings 41 42 and roll covers for paper, tissue, and board machines. 35 37 24 23 27 18 20 22 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 HYDRO SEPAR
Slide 10: Solid Order Backlog – Especially in Pulp & Paper
SOLID ORDER BACKLOG – ESPECIALLY IN PULP & PAPER Order backlog at 7.8 billion as of end of 2019 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) +10% ORDER BACKLOG 2019 BY BUSINESS AREA 7,786 8,121 7,778 (IN %) 7,724 7,349 7,324 7,148 7,076 7,044 7,084 7,261 6,892 6,789 6,974 6,849 6,651 6,841 6,883 6,3
Slide 11: Decline of EBITA Due to Restructuring Measures
DECLINE OF EBITA DUE TO RESTRUCTURING MEASURES Excluding extraordinary items practically unchanged profitability compared to 2018 EBITA (IN MEUR) AND EBITA MARGIN (IN %) 456.0** +10% 6.8%** Split of restructuring measures: 415.0** 6.9%** Total: 113 MEUR in 2019, thereof • Metals: ~ -82 MEUR • Hydro:
Slide 12: Profitability by Business Area
PROFITABILITY BY BUSINESS AREA EBITA margin (in %) PULP & PAPER METALS HYDRO SEPARATION 9.5 9.9 9.8** 8.7 7.8 7.9** 8.1** 9.4* 7.3 7.2 6.6** * 6.0 4.6 4.8 7.5 * 7.2 * 2.9 2.5** 5.8 * 0.5** 1.7 * 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 -4.5* * EBITA margin repo
Slide 13: EBITDA – Net Income Bridge
EBITDA – NET INCOME BRIDGE • Leasing IFRS 16 (~46 MEUR) • Newly acquired companies (~35 MEUR) • Impairment losses on property, plant, and equipment in Metals and Hydro (~19 MEUR) Increase in interest expenses Thereof ~49 MEUR for due to newly acquired companies • issuance of (mainly Xerium) Schuldsc
Slide 14: Significant Increase in Cash Flow from Operating Activities
SIGNIFICANT INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES From +8 MEUR in 2018 to +822 MEUR in 2019 Split of total depreciation: • ~194 MEUR depreciation, thereof • ~35 MEUR from newly acquired companies and • ~46 MEUR from IFRS 16 Leasing (-278.7)* (21.0)* • ~76 MEUR IFRS 3 Amortization, thereof
Slide 15: Key Figures FY 2019 at a Glance
KEY FIGURES FY 2019 AT A GLANCE UNIT 2019 2018 +/- Order intake MEUR 7,282.0 6,646.2 +9.6% Order backlog (as of end of period) MEUR 7,777.6 7,084.3 +9.8% Sales MEUR 6,673.9 6,031.5 +10.7% EBITA MEUR 343.2 394.3 -13.0% EBITA (adj. by extraordinary items) MEUR 456.0 415.0 +9.9% Strong increase mainly
Slide 16: Proposed Dividend of 0.70 EUR/Share
PROPOSED DIVIDEND OF 0.70 EUR/SHARE 2019 payout ratio: 55% - in line with dividend policy to payout between 50 and 60% of Earnings per share DIVIDEND PER SHARE (EUR) 1.50 1.55 1.55 1.35 1.20 1.10 1.00 0.85 0.70* 0.50 0.55 0.50 0.50 0.38 0.18 0.25 0.11 0.13 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 17: Chapter Overview
CHAPTER OVERVIEW 01 FY 2019 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 17 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2019 / MARCH 4, 2020 / © ANDRITZ GROUP
Slide 18: Pulp & Paper (1): Very High Project Activity
PULP & PAPER (1): VERY HIGH PROJECT ACTIVITY Strong market position in pulp confirmed by receipt of several greenfield orders • Pulp © UPM Very high project activity for both modernization of existing pulp mills and greenfield pulp mills, also for viscose pulp • Paper Stable market development for t
Slide 19: Pulp & Paper (2): Strong Increase in Order Intake and Sales
PULP & PAPER (2): STRONG INCREASE IN ORDER INTAKE AND SALES Profitability remains at very favorable level UNIT 2019 2018 +/- Order intake reached new record: • award of some large-scale Order intake MEUR 3,632.5 2,571.9 +41.2% orders for new pulp mills in South America Order backlog (as of end of pe
Slide 20: Metals (1): Unchanged Low Project and Investment Activity
METALS (1): UNCHANGED LOW PROJECT AND INVESTMENT ACTIVITY Weak market environment in both Metals Forming and Processing • Metals Forming Unchanged low project and investment activity due to the continuing weak international automotive market. Only selective investments made in the Electric Vehicle m
Slide 21: Metals (2): Earnings and Profitability Significantly Down
METALS (2): EARNINGS AND PROFITABILITY SIGNIFICANTLY DOWN Restructuring measures and cost overruns in Metals Processing strongly impact earnings UNIT 2019 2018 +/- Significant decline in order intake Order intake MEUR 1,582.2 1,931.8 -18.1% in Metals Forming as well as in Metals Processing due to we
Slide 22: Hydro (1): Unchanged Moderate Market Environment
HYDRO (1): UNCHANGED MODERATE MARKET ENVIRONMENT Only selective award of individual projects The Mur hydropower station in Graz supplies clean • Hydropower electrical energy for about 20,000 households, saving • Continuing low investment activity by electric and energy about 60,000 tons of CO2 every
Slide 23: Hydro (2): Decline of Order Intake and Sales
HYDRO (2): DECLINE OF ORDER INTAKE AND SALES Satisfactory development of earnings and profitability (excl. extraordinary effects) UNIT 2019 2018 +/- Order intake down y/y due to Order intake MEUR 1,350.2 1,445.8 -6.6% moderate global hydropower market Order backlog (as of end of period) MEUR 2,661.0
Slide 24: Separation (1): Satisfactory Project and Investment Activity
SEPARATION (1): SATISFACTORY PROJECT AND INVESTMENT ACTIVITY Particularly for solid/liquid separation equipment • Municipal Investment activity at solid levels (sewage sludge dewatering and drying) • Industrial Solid project activity in chemicals, mining, and minerals; investment activity in food sl
Slide 25: Separation (2): Further Earnings Improvement
SEPARATION (2): FURTHER EARNINGS IMPROVEMENT Increase of order intake compared 2018 which included a large order UNIT 2019 2018 +/- Order intake slightly above the high level of the previous year Order intake MEUR 717.1 696.7 +2.9% which included a large-scale order from China Order backlog (as of e
Slide 26: Chapter Overview
CHAPTER OVERVIEW 01 FY 2019 AT A GLANCE 02 03 04 26 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2019 / MARCH 4, 2020 / © ANDRITZ GROUP
Slide 27: Goals, Outlook and Guidance for 2020
GOALS, OUTLOOK AND GUIDANCE FOR 2020 Increase in sales, stable earnings Status of general business environment and outlook for business areas: GUIDANCE FOR 2020: • Slight increase of Group sales • Weak global economic environment, impact of Covid-19 virus on global • Group EBITA to reach adjusted EB
Slide 28: 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