Slide 1: Results for Q1 2019
RESULTS FOR Q1 2019 ANDRITZ GROUP MAY 2, 2019
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2019 AT A GLANCE 02 PERFORMANCE Q1 2019 AND MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2019 / MAY 2, 2019 / © ANDRITZ GROUP
Slide 3: Q1 2019 at a Glance
Q1 2019 AT A GLANCE Solid business development. • Solid development of Group order intake, reaching over 1.6 billion euros • High order intake in Pulp & Paper, mainly driven by orders for power generating boilers; Hydro and Metals down y/y. • Sales increased to almost 1.5 billion euros • Strong incr
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2019 AT A GLANCE 02 PERFORMANCE Q1 2019 AND MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2019 / MAY 2, 2019 / © ANDRITZ GROUP
Slide 5: Solid Development of Order Intake
SOLID DEVELOPMENT OF ORDER INTAKE Strong development in Pulp & Paper, weak in Hydro and Metals. ORDER INTAKE (IN MEUR) Thereof ~158 MEUR from newly acquired companies in H2 2018 (mainly Xerium) +8% ORDER INTAKE BY BUSINESS AREA (IN MEUR) 1,658 1,533 Q1 2019 Q1 2018 +/- Hydro 314 435 -28% Pulp & Pape
Slide 6: Quarterly Development of Order Intake
QUARTERLY DEVELOPMENT OF ORDER INTAKE Aggregated order intake of the last four quarters amounts to ~6.8 bn. EUR. ORDER INTAKE BY REGION MEUR MEUR (IN %) +8% 2,500 2,250 8,000 1,908 2,000 1,737 1,658 1,431 1,470 1,532 1,560 1,467 1,533 1,469 6,000 Emerging 5% 1,500 1,149 1,188 1,247 1,319 1,211 1,341
Slide 7: Strong Sales Increase in Q1 2019
STRONG SALES INCREASE IN Q1 2019 Very favorable development in Pulp & Paper, Metals, and Separation. SALES (IN MEUR) Thereof ~132 MEUR from newly acquired +15% companies in H2 2018 (mainly Xerium) 1,489 1,291 SALES BY BUSINESS AREA (IN MEUR) Q1 2019 Q1 2018 +/- Hydro 339 350 -3% Pulp & Paper 603 459
Slide 8: Capital Sales
CAPITAL SALES Quarterly development of capital sales (in MEUR). +4% 1,400 4,600 1,230 1,240 1,200 1,140 1,114 1,152 1,129 1,011 1,010 4,400 1,001 958 1,000 922 911 895 863 926 897 848 4,200 800 4,000 600 3,800 400 200 3,600 0 3,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4
Slide 9: Further Increase of Service Business
FURTHER INCREASE OF SERVICE BUSINESS Thereof ~109 MEUR from Quarterly development of service sales (in MEUR). Xerium +38% 800 2,400 702 700 558 560 594 592 2,200 600 514 511 461 470 465 468 465 482 469 500 403 437 428 2,000 400 300 1,800 200 1,600 100 0 1,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 1
Slide 10: Group Order Backlog Up Compared to End of 2018
GROUP ORDER BACKLOG UP COMPARED TO END OF 2018 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) +11% ORDER BACKLOG Q1 2019 BY BUSINESS AREA 7,786 (IN %) 7,349 7,324 7,148 7,076 7,044 6,892 6,789 6,974 6,849 6,651 6,841 6,883 7,084 7,261 6,383 6,553 6% 22% 36% 36% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 1
Slide 11: Q1 2019 Earnings Increased in Line with Sales
Q1 2019 EARNINGS INCREASED IN LINE WITH SALES Profitability at unchanged level. EBITA (IN MEUR) AND EBITA MARGIN (IN %) +16% • EBITA in Q1 2019 increased to 82.8 MEUR (+15.5% versus Q1 2018: 82.8 71.7 MEUR), driven by Pulp & Paper. 71.7 • EBITA margin, at 5.6%, remained unchanged (Q1 2018: 5.6%). •
Slide 12: Earnings and Profitability by Business Area
EARNINGS AND PROFITABILITY BY BUSINESS AREA EBITA (MEUR) and EBITA margin (%). HYDRO PULP & PAPER METALS SEPARATION 52.4 34.5 8.7% 21.2 20.6 7.5% 6.1% 6.1% 9.8 8.3 1.5 6.2 2.8% 5.2% 0.4% 4.6% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 12 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP
Slide 13: Q1 2019 Net Working Capital Bridge
Q1 2019 NET WORKING CAPITAL BRIDGE in MEUR. 13 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2019 / MAY 2, 2019 / © ANDRITZ GROUP
Slide 14: Improved Cash Flow from Operating Activities
IMPROVED CASH FLOW FROM OPERATING ACTIVITIES From -23 MEUR in Q1 2018 to +56 MEUR in Q1 2019. Split of total depreciation: • ~44 MEUR depreciation, thereof • ~9 MEUR from newly acquired companies and • ~11 MEUR from IFRS 16 Leasing) • ~25 MEUR IFRS 3 Amortization, thereof • ~18 MEUR from newly acqui
Slide 15: Key Figures Q1 2019 at a Glance
KEY FIGURES Q1 2019 AT A GLANCE UNIT Q1 2019 Q1 2018 +/- 2018 Decline of net income mainly due to • increased depreciation and Order intake MEUR 1,658.1 1,532.8 +8.2% 6,646.2 amortization of intangible assets (including goodwill impairment) Order backlog (as of end of period) MEUR 7,260.9 6,553.2 +1
Slide 16: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2019 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 16 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2019 / MAY 2, 2019 / © ANDRITZ GROUP
Slide 17: Hydro (1): Unchanged Moderate Market Environment
HYDRO (1): UNCHANGED MODERATE MARKET ENVIRONMENT Selective award of individual projects, particularly in the growing Asian market. ANDRITZ supplied equipment for the pumped storage • New hydropower plants hydropower plant Shi Shan Ling, China. Some new, larger projects are currently in the planning
Slide 18: Hydro (2): Order Intake Significantly Below High Level of Last Year
HYDRO (2): ORDER INTAKE SIGNIFICANTLY BELOW HIGH LEVEL OF LAST YEAR Solid development of earnings and profitability. UNIT Q1 2019 Q1 2018 +/- 2018 Order intake significantly Order intake MEUR 313.9 434.8 -27.8% 1,445.8 below the high level of Q1 2018, which included a large Order backlog (as of end
Slide 19: Pulp & Paper (1): Continued Good Market Environment
PULP & PAPER (1): CONTINUED GOOD MARKET ENVIRONMENT The ANDRITZ tissue pilot plant in Graz, Austria – the • Pulp PrimeLineTIAC – offers customers the opportunity to test and develop their future textured tissue. Good project activity for both modernization of existing pulp mills and greenfield pulp
Slide 20: Pulp & Paper (2): Favorable Business Development
PULP & PAPER (2): FAVORABLE BUSINESS DEVELOPMENT Significant increase in order intake; earnings and profitability at favorable levels. UNIT Q1 2019 Q1 2018 +/- 2018 Order intake significantly Order intake MEUR 806.9 457.4 +76.4% 2,571.9 up, both for the capital and service business. Order backlog (a
Slide 21: Metals (1): Continued Low Project and Investment Activity in Metals Forming
METALS (1): CONTINUED LOW PROJECT AND INVESTMENT ACTIVITY IN METALS FORMING Satisfactory market environment in Metals Processing. • Metals Forming Unchanged moderate project and investment activity due to the continuing weak international automotive market as well as due to the economic slow down in
Slide 22: Metals (2): Unsatisfactory Business Development
METALS (2): UNSATISFACTORY BUSINESS DEVELOPMENT Earnings and profitability impacted by execution of lower-margin orders and under-utilization. UNIT Q1 2019 Q1 2018 +/- 2018 Significant decline in order Order intake MEUR 348.1 467.8 -25.6% 1,931.8 intake driven by Metals Forming. Solid development Or
Slide 23: Separation (1): Good Project and Investment Activity Continued
SEPARATION (1): GOOD PROJECT AND INVESTMENT ACTIVITY CONTINUED Particularly for solid/liquid separation equipment. • Municipal Investment activity at unchanged good levels (sewage sludge dewatering and drying). • Industrial Good project activity in chemicals, mining, and minerals; investment activit
Slide 24: Separation (2): Significant Increase in Sales and Earnings
SEPARATION (2): SIGNIFICANT INCREASE IN SALES AND EARNINGS Increase in order intake, especially for solid/liquid separation equipment. UNIT Q1 2019 Q1 2018 +/- 2018 Order intake favorably up. Order intake MEUR 189.2 172.8 +9.5% 696.7 Order backlog (as of end of period) MEUR 434.8 393.7 +10.4% 403.7
Slide 25: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2019 AT A GLANCE 02 03 04 25 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2019 / MAY 2, 2019 / © ANDRITZ GROUP
Slide 26: Outlook for Remainder of 2019
OUTLOOK FOR REMAINDER OF 2019 Largely unchanged prospects and expectations for markets served by ANDRITZ. • For 2019, ANDRITZ continues to expect a significant increase in sales compared to 2018 due to high order backlog and sales contributions by the companies acquired in 2018. • Operative profitab
Slide 27: 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