Andritz Ag · VIE:ANDR
Andritz — Investor Day (September 2021)
16 slides from Andritz's investor day presentation, Sep 15, 2021
Slide 1: ANDRITZ Group Financials
ANDRITZ CAPITAL MARKET DAY 2021 ANDRITZ GROUP FINANCIALS NORBERT NETTESHEIM • SEPTEMBER 15, 2021
Slide 2: Goal: Revenue to grow by 5-8%
GOAL: REVENUE TO GROW BY 5 -8% Revenue by business area (in MEUR) 6.674 6.700 6.377 5.859 6.039 5.889 6.032 5.711 1.637 1.421 5.177 1.718 1.550 1.598 1.635 405 1.311 1.644 4.596 1.296 Group revenue target of 373 1.471 5-8% remains 1.837 1.805 1.835 1.753 1.583 1.518 644 unchanged -> about 1.773 1.75
Slide 3: EBITA margin goals for business areas
EBITA MARGIN GOALS FOR BUSINESS AREAS EBITA margin by business area (in %) PULP & PAPER METALS 9,5 9,9 9,4 9,7 10,4 8,7 8,7 7,1 7,2 6,0 Long-term Long-term 5,2 4,1 4,1 goal: goal: 10.0-11.0% 2,4 6.0-7.0% 1,7 COMFIRMED COMFIRMED 2013 2014 2015 2016 2017 2018 2019 2020 H121 2013 2014 2015 2016 2017 20
Slide 4: EBITA margin goals for business areas lead to group target of 8-9%
EBITA MARGIN GOALS FOR BUSINESS AREAS LEAD TO GROUP TARGET OF 8 -9% Lower Upper Target margin target level ** target level ** (%) MEUR % MEUR % Revenue 7,500 7,500 TOTAL * EBITA 8-9 600 8.0 675 9.0 Revenue 3,500 3,500 PULP & PAPER EBITA 10-11 350 10.0 385 11.0 Revenue 1,500 1,500 METALS EBITA 6-7 90
Slide 5: Based on EBITA margin of 8-9% net income >5% sustainably achievable
BASED ON EBITA-MARGIN OF 8-9% NET INCOME >5% SUSTAINABLY ACHIEVABLE in MEUR 8.0 – 9.0% 7.3% 7.5% 6.7% 6.5% 5.8% 6.5% > 5.0% 6.9% 7.2% 5.1% 4.2% 4.6% 4.5% 4.7% 7.9% 5.0% 3.6% 3.6% 444 3.0% 429 442 358 2.9% 380 394 392 332 343 1.8% 4.5% 241 270 275 266 232 210 220 204 238 164 0.9% 135 123 53 2011 2012
Slide 6: Net income in a range of 5% to be expected
NET INCOME IN A RANGE OF 5% TO BE EXPECTED Financial result and rax rate under special attention to support Net income ~10.5% ~2.5% 8.0% <1% ~7.3% <0.5% ~7.0% < 2% > 5.0% 6 / ANDRITZ CMD 2021 - ANDRITZ GROUP FINANCIALS, SEPTEMBER 15, 2021
Slide 7: Financial results
FINANCIAL RESULTS Reduction of cost of carry (interest result) supports improvement of financial results in MEUR 5 8 9 12 5 7 -2 -4 -9 -1 -2 -11 -8 -25 -8 -1 -29 -48 (48.0)* (58.2)* -1 (122.8)* -9 -9.5 3.7 7.3 12.7 1.3 -17.4 -57.0 -34.2 -18.2 2013 2014 2015 2016 2017 2018 2019 2020 H1 21 Income (los
Slide 8: Taxes and tax rates
TAXES AND TAX RATES Improvement of tax structures supports sustainable reduction of tax rate in MEUR 40 500 34 34 31 32 35 30 28 28 27 27 30 400 124 135 25 106 300 (48.0)* 20 89 85 (58.2)* 77 200 15 (122.8)* 58 51 270 275 266 10 100 210 220 204 27 123 135 5 53 0 0 2013 2014 2015 2016 2017 2018 2019
Slide 9: Cash flow development
CASH FLOW DEVELOPMENT Intensive Working Capital Management and reasonable capex in fixed assets support cash conversion rate above 85% and FCF > 300 MEUR OPERATING AND FREE CASHFLOW OF THE ANDRITZ GROUP (IN MEUR) 822 665 462 434 361 347 342 367 330 240 246 264 247 5y avg. 179 130 252 MEUR 94 85 8 20
Slide 10: Cash conversion rate
CASH CONVERSION RATE NWC increase and investments for growth determine cash conversion rate growth effects (821.6)* Target: cash conversion (FCF/NI): > 85 % 10 / ANDRITZ CMD 2021 - ANDRITZ GROUP FINANCIALS, SEPTEMBER 15, 2021
Slide 11: Net working capital
NET WORKING CAPITAL Target: usual changes in NWC from timing-effects in order intake and order exectution balanced over time, plus moderate increase of NWC from growth NET WORKING CAPITAL OF THE ANDRITZ GROUP (IN MEUR) 161 32 -49 -121 -134 -182 -216 2015 2016 2017 2018 2019 2020 H1 21 11 / ANDRITZ C
Slide 12: Capex and depreciation
CAPEX AND DEPRECIATION Target: Capex on average in the range of depreciation plus moderate growth investments CAPEX AND DEPRECIATION OF THE ANDRITZ GROUP (IN MEUR) 194 179 → Average 2015-2020 Capex: 127 MEUR p.y. 157 → Average 2015-2020 regular Depreciation: 122 p.y. 137 132 120 117 101 106 104 100
Slide 13: Solid financial position
SOLID FINANCIAL POSITION Liquid funds of > 1.5 billion euros constantly to be maintained, net liquidity increase target of > 100 MEUR p.a. after dividend and before major acquisitions IN MEUR 2.350 Acquisition of Schuler Acquisition of Xerium 2 048 1 815 1 772 1.850 1 719 1 702 1 671 1 595 1 610 1 5
Slide 14: Goal: Solid equity ratio above 20%
GOAL: SOLID EQUITY RATIO ABOVE 20% TOTAL SHAREHOLDERS‘ EQUITY (IN MEUR) EQUITY RATIO (IN %) 1.344 1.337 21,7 1.325 1.331 21,0 21,2 18,6 19,2 17,8 1.256 16,7 17,3 16,9 1.216 1.220 1.038 929 5.6* 6.0 5.8 6.2 6.3 6.9 7.2 7.1 7.2 2013 2014 2015 2016 2017 2018 2019 2020 H1 21 GOODWILL ADJUSTED EQUITY RAT
Slide 15: Goal: Continue to payout 50-60% of EPS
GOAL: CONTINUE TO PAYOUT 50-60% OF EPS DIVIDEND PER SHARE (EUR) 1,50 1,55 1,55 1,35 1,20 1,10 1,00 1,00 0,85 0,50 0,55 0,50 0,50 0,50 0,38 0,18 0,25 0,11 0,13 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PAYOUT RATIO (%) 48.5% Average payout ratio 78
Slide 16: Many thanks!
ANDRITZ CAPITAL MARKET DAY 2021 MANY THANKS! SEPTEMBER 15, 2021