Andritz Ag · VIE:ANDR
Andritz — Non-Deal Roadshow (November 2020)
23 slides from Andritz's roadshow presentation, November 2020
Slide 1: Company Presentation ANDRITZ Group November 2020
COMPANY PRESENTATION ANDRITZ GROUP NOVEMBER 2020
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2020 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 2 / COMPANY PRESENTATION, NOVEMBER 2020 / © ANDRITZ GROUP
Slide 3: The ANDRITZ Group
THE ANDRITZ GROUP ANDRITZ is a globally leading supplier of plants, equipment, systems and services for the pulp and paper industry, the metalworking and steel industries, hydropower stations, pumps, and solid/liquid separation in the municipal and industrial sectors as well as for animal feed and b
Slide 4: A World Market Leader with Four Business Areas
A WORLD MARKET LEADER WITH FOUR BUSINESS AREAS PULP & PAPER METALS HYDRO SEPARATION 50 22 18 10 % order intake* % order intake* % order intake* % order intake* PRODUCT OFFERING PRODUCT OFFERING PRODUCT OFFERING PRODUCT OFFERING Equipment for production of Presses/press lines for metal Electromechani
Slide 5: Long-Term Growth Based on Acquisitions and Organic Expansion
LONG-TERM GROWTH BASED ON ACQUISITIONS AND ORGANIC EXPANSION Compound Annual Growth Rate (CAGR) of Group sales 2010-2019: +7% p.a. (thereof approximately half from organic growth) 6,674 6,377 5,859 6,039 5,889 6,032 5,711 5,177 4,596 3,554 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue (M
Slide 6: Strengthening of Market Position by Acquisitions
STRENGTHENING OF MARKET POSITION BY ACQUISITIONS Acquisitions by business area since 2000 PULP & PAPER METALS HYDRO SEPARATION 2000 Ahlstrom Machinery 2010 Rieter Perfojet 2000 Kohler 2006 VA TECH HYDRO 2000 UMT 2000 Lamb Baling Line 2010 DMT/Biax 2002 SELAS SAS Furnace Div. 2007 Tigép 2002 3SYS 200
Slide 7: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2020 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 7 / COMPANY PRESENTATION, NOVEMBER 2020 / © ANDRITZ GROUP
Slide 8: Good Order Intake in Q3 2020, Although Below Very High Level of Previous Year
GOOD ORDER INTAKE IN Q3 2020, ALTHOUGH BELOW VERY HIGH LEVEL OF PREVIOUS YEAR Metals down due to Metals Processing; Hydro driven by large-scale orders from India and Canada ORDER INTAKE Q3 2020 (IN MEUR) ORDER INTAKE BY BUSINESS AREA (IN MEUR) ORDER INTAKE Q1-Q3 2020 (IN MEUR) Q3 2020 Q3 2019 +/- Pu
Slide 9: Group Revenue Reaches Solid Level
GROUP REVENUE REACHES SOLID LEVEL Driven by capital, decline of service revenue due to Corona restrictions REVENUE Q3 2020 (IN MEUR) REVENUE BY BUSINESS AREA (IN MEUR) REVENUE Q1-Q3 2020 (IN MEUR) Q3 2020 Q3 2019 +/- Pulp & Paper 852 751 +13% +2% Metals 351 423 -17% (100% organic) Hydro 305 351 -13%
Slide 10: Earnings and Profitability Up Due to Continued Cost Containment and High Sales
EARNINGS AND PROFITABILITY UP DUE TO CONTINUED COST CONTAINMENT AND HIGH SALES Provisions for capacity and restructuring measures to ensure long-term competitiveness EBITA (IN MEUR) AND EBITA MARGIN (IN %) +28% 130.3*** • Q3 2020: ~26 MEUR restructuring measures and capacity adjustments 26.1** 7.8%*
Slide 11: Solid Earnings and Profitability Development in Q1-Q3 2020
SOLID EARNINGS AND PROFITABILITY DEVELOPMENT IN Q1-Q3 2020 EBITA margin up y/y EBITA (IN MEUR) AND EBITA MARGIN (IN %) +9% 313.1*** 286.9*** 34.6 ** 6.5%*** EBITA margin 103.0 ** • Q1-Q3 2020: ~35 MEUR restructuring measures 6.0%*** and capacity adjustments • Focus on Metals Forming and Hydro +51% 2
Slide 12: Profitability by Business Area
PROFITABILITY BY BUSINESS AREA EBITA margin (%) PULP & PAPER METALS HYDRO SEPARATION 10.9** 10.2** 9.8** 9.1** 9.6** * 10.1 8.4** 9.4* 8.1** 9.9* * 8.1** 8.8* 9.4 6.5** 6.6** 6.0** 6.2** 5.8** 7.8* 7.7* 7.2* 5.8** 5.3** 5.6* 5.8* 5.1* 5.2* * 4.0* 3.7* 4* 0.5** 2.3** 2.4** 0.3** -0.6** FY 2019 Q3 201
Slide 13: Solid Financial Position
SOLID FINANCIAL POSITION Liquid funds of 1.6 billion euros Acquisition of Xerium IN MEUR (~833 MUSD), including net financial Mainly acquisition of liabilities of approximately 590 MUSD Schuler (~600 MEUR) (mainly redemption of bond) 2350 2,048 1,815 1,772 1850 1,702 1,595 1,610 1,556 1,517 1,449 1,
Slide 14: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2020 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 14 / COMPANY PRESENTATION, NOVEMBER 2020 / © ANDRITZ GROUP
Slide 15: Pulp & Paper: Continued Very Favorable Business Development
PULP & PAPER: CONTINUED VERY FAVORABLE BUSINESS DEVELOPMENT Strong increase in revenue and continued favorable profitability Order intake in Q3 2020 down compared to Q3 2019 UNIT Q3 2020 Q3 2019 +/- Q1-Q3 2020 Q1-Q3 2019 +/- 2019 which included a large-scale order from South America Order intake MEU
Slide 16: Metals: Continued Weak Business Development
METALS: CONTINUED WEAK BUSINESS DEVELOPMENT Restructuring measures in Metals Forming to cope with structural market weakness and underabsorption Order intake in Q3 2020 UNIT Q3 2020 Q3 2019 +/- Q1-Q3 2020 Q1-Q3 2019 +/- 2019 significantly down y/y due to Order intake MEUR 354.6 429.0 -17.3% 842.7 1,
Slide 17: Hydro: Increase of Order Intake in Q3 2020
HYDRO: INCREASE OF ORDER INTAKE IN Q3 2020 Decline in revenue, earnings and profitability at low levels Order intake significantly up UNIT Q3 2020 Q3 2019 +/- Q1-Q3 2020 Q1-Q3 2019 +/- 2019 due to some larger order Order intake MEUR 469.0 343.0 +36.7% 961.4 944.8 +1.8% 1,350.2 awards in North Americ
Slide 18: Separation: Further Improvement of Earnings and Profitability
SEPARATION: FURTHER IMPROVEMENT OF EARNINGS AND PROFITABILITY Earnings and profitability significantly up UNIT Q3 2020 Q3 2019 +/- Q1-Q3 2020 Q1-Q3 2019 +/- 2019 Order intake slightly higher Order intake MEUR 167.9 158.6 +5.9% 524.3 526.5 -0.4% 717.1 than in Q3 2019 Order backlog (as of end of perio
Slide 19: Chapter Overview
CHAPTER OVERVIEW 01 ANDRITZ GROUP OVERVIEW 02 RESULTS Q3/Q1-Q3 2020 03 UPDATE OF BUSINESS AREAS 04 OUTLOOK 19 / COMPANY PRESENTATION, NOVEMBER 2020 / © ANDRITZ GROUP
Slide 20: Market Update and Outlook by Business Area (I)
MARKET UPDATE AND OUTLOOK BY BUSINESS AREA (I) Unchanged satisfactory market environment for Pulp and Paper, weak conditions in Metals PULP & PAPER • Ongoing satisfactory project activity in pulp and tissue/cartonboard and for biomass power boilers (Japan, China) • Continued high investment activity
Slide 21: Market Update and Outlook by Business Area (II)
MARKET UPDATE AND OUTLOOK BY BUSINESS AREA (II) Challenging market environment for hydropower equipment to continue, Separation satisfactory HYDRO • Unchanged challenging market environment globally • Some larger orders secured; more to come during next quarters? • Continuing low investment activity
Slide 22: Outlook
OUTLOOK ANDRITZ topics for the remainder of 2020: • Secure appropriate cost structure for 2021 • Concentrate on Metals Forming and Hydro Margin guidance for 2020 slightly increased, unchanged revenue guidance: • Adjusted EBITA margin 2020 roughly unchanged compared to adjusted EBITA margin 2019 (6.8
Slide 23: Disclaimer
DISCLAIMER 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 contracts that may be con