Andritz Ag · VIE:ANDR
Andritz — Q1 2020 Earnings Presentation
25 slides from Andritz's earnings presentation, Apr 30, 2020
Slide 1: Results for Q1 2020 – ANDRITZ Group
RESULTS FOR Q1 2020 ANDRITZ GROUP APRIL 30, 2020
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2020 AT A GLANCE 02 PERFORMANCE Q1 2020 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2020 / APRIL 30, 2020 / © ANDRITZ GROUP
Slide 3: Q1 2020 at a Glance
Q1 2020 AT A GLANCE Solid development of order intake, earnings down mainly due to Metals and Hydro • Group order intake, at almost 1.9 billion euros, reaches satisfactory level, mainly driven by Pulp & Paper (booking of large order from UPM); Metals solid, Hydro weak • Order Backlog, at favorable l
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2020 AT A GLANCE 02 PERFORMANCE Q1 2020 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2020 / APRIL 30, 2020 / © ANDRITZ GROUP
Slide 5: Satisfactory Development of Order Intake Due to Pulp & Paper
SATISFACTORY DEVELOPMENT OF ORDER INTAKE DUE TO PULP & PAPER Solid order intake also in Metals Forming, weak in Hydro ORDER INTAKE (IN MEUR) +12% (100% organic) 1,853 1,658 ORDER INTAKE BY BUSINESS AREA (IN MEUR) Q1 2020 Q1 2019 +/- Pulp & Paper 1,078 807 +34% Metals 362 348 +4% Hydro 246 314 -22% S
Slide 6: Quarterly Development of Order Intake
QUARTERLY DEVELOPMENT OF ORDER INTAKE Emerging markets account for 57% of total order intake ORDER INTAKE BY REGION MEUR MEUR Q1 2020 IN % 2,500 2,250 2,094 10,000 1,908 2,047 1,853 8,000 2,000 1,737 1,658 1,431 1,470 1,532 1,560 1,341 1,467 1,533 1,469 1,483 2% 1,500 1,149 1,188 1,247 1,319 1,211 6
Slide 7: Group Sales Basically Unchanged Compared to Q1 2019
GROUP SALES BASICALLY UNCHANGED COMPARED TO Q1 2019 Strong increase in Pulp & Paper offsets decline in the other business areas SALES (IN MEUR) +1% (100% organic) 1,489 1,510 SALES BY BUSINESS AREA (IN MEUR) Q1 2020 Q1 2019 +/- Pulp & Paper 713 603 +18% Metals 355 388 -8% Hydro 298 339 -12% Separati
Slide 8: Service Business Continues Solid Performance
SERVICE BUSINESS CONTINUES SOLID PEFORMANCE Quarterly development of service sales (in MEUR) -2% 800 757 2,800 702 671 700 651 2,600 558 560 594 587 576 600 514 511 482 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 15 Q1 16 Q2 16 Q
Slide 9: Service Business by Business Area
SERVICE BUSINESS BY BUSINESS AREA % of total business area sales PULP & PAPER METALS 48 51 41 42 45 35 37 24 23 27 23 18 20 22 2014 2015 2016 2017 2018 2019 Q1 2020 2014 2015 2016 2017 2018 2019 Q1 2020 HYDRO SEPARATION 52 43 44 46 47 45 45 29 32 33 26 25 26 28 2014 2015 2016 2017 2018 2019 Q1 2020
Slide 10: Solid Order Backlog – Especially in Pulp & Paper
SOLID ORDER BACKLOG – ESPECIALLY IN PULP & PAPER Order backlog at 7.9 billion as of end of Q1 2020 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) +9% ORDER BACKLOG Q1 2020 BY BUSINESS AREA 7,786 8,121 7,778 7,925 (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 6,84
Slide 11: EBITA Down Mainly Due to Metals and Hydro
EBITA DOWN MAINLY DUE TO METALS AND HYDRO Continued solid performance of Pulp & Paper EBITA (IN MEUR) AND EBITA MARGIN (IN %) EBITA MARGIN (IN %) -15% PULP & PAPER METALS 82.8 8.7 8.7 70.1 0.4 5.6%* Q1 2019 Q1 2020 Q1 2019 Q1 2020 4.6%* -3.7 HYDRO SEPARATION 6.1 5.0 5.2 4.5 Q1 2019 Q1 2020 * EBITA a
Slide 12: EBITDA – Net Income Bridge
EBITDA – NET INCOME BRIDGE • Net interest result improved to - 6.7 MEUR (Q1 2019: -7,8 MEUR) Thereof ~7 MEUR • Decrease in other financial result for Xerium to -2.9 MEUR (Q1 2019: +1.5 MEUR) due to valuation of securities and accounts on balance sheet date (-1.3 MEUR) Tax rate: ~31% 7.5%* 4.6% 3.6%
Slide 13: Stable Development of Cash Flow from Operating Activities
STABLE DEVELOPMENT OF CASH FLOW FROM OPERATING ACTIVITIES (73.6)* Split of total depreciation: • ~43 MEUR depreciation, • ~16 MEUR IFRS 3 (-25.0)* (-8.4)* (-5.9)* Amortization (-5.0)* (98.0)* (3.9)* (-31.6)* (56.0)* (7.9)* (46.5)* * Q1 2019 13 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2020 / A
Slide 14: Solid Financial Position
SOLID FINANCIAL POSITION Gross cash of 1.5 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) 2,350 2,048 1,815 1,772 1,850 1,702 1,595 1,610 1,517 1,507 1,543 •
Slide 15: Key Figures Q1 2020 at a Glance
KEY FIGURES Q1 2020 AT A GLANCE UNIT Q1 2020 Q1 2019 +/- 2019 Order intake MEUR 1,852.9 1,658.1 +11.7% 7,282.0 Order backlog (as of end of period) MEUR 7,924.6 7,260.9 +9.1% 7,777.6 • Solid financial position with Sales MEUR 1,510.2 1,489.2 +1.4% 6,673.9 stable cash flow EBITA MEUR 70.1 82.8 -15.3%
Slide 16: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2020 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 16 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2020 / APRIL 30, 2020 / © ANDRITZ GROUP
Slide 17: Pulp & Paper: Strong Increase of Sales and Continued Solid Profitability
PULP & PAPER: STRONG INCREASE OF SALES AND CONTINUED SOLID PROFITABILITY Favorable development of order intake UNIT Q1 2020 Q1 2019 +/- 2019 Order intake increased due to Order intake MEUR 1,078.2 806.9 +33.6% 3,632.5 • booking of large greenfield pulp mill order and Order backlog (as of end of peri
Slide 18: ANDRITZ Production Lines for Face Mask
ANDRITZ PRODUCTION LINES FOR FACE MASK ANDRITZ D-TECH face masks by ANDRITZ Diatec ANDRITZ Diatec, acquired in July 2018, developed a state-of-the-art, fully automated, high-speed converting line for production of surgical and other disposable face masks with highest quality and hygiene standards •
Slide 19: Full Range in Nonwovens Production
FULL RANGE IN NONWOVENS PRODUCTION Value chain from raw materials to end customer (blue = ANDRITZ Nonwoven business territory) End user Raw Nonwoven Converting Retail & Materials Fabrication Distribution Man made fibers, man Processes, lines and Lines and processes for components for the converting.
Slide 20: Metals: Earnings and Profitability Significantly Down
METALS: EARNINGS AND PROFITABILITY SIGNIFICANTLY DOWN Underabsorption and processing of low-margin orders impact earnings UNIT Q1 2020 Q1 2019 +/- 2019 Order intake up due to Metals Order intake MEUR 361.5 348.1 +3.8% 1,582.2 Forming; Metals Processing down due to weak market conditions Order backlo
Slide 21: Hydro: Continued Weak Market Conditions
HYDRO: CONTINUED WEAK MARKET CONDITIONS Low order intake due to timing of large order awards UNIT Q1 2020 Q1 2019 +/- 2019 Order intake down y/y due to Order intake MEUR 245.5 313.9 -21.8% 1,350.2 moderate global hydropower market; no award of larger projects Order backlog (as of end of period) MEUR
Slide 22: Separation: Reasonable Performance
SEPARATION: REASONABLE PERFORMANCE Solid development of order intake in feed technologies UNIT Q1 2020 Q1 2019 +/- 2019 Order intake down; solid development of feed technologies Order intake MEUR 167.7 189.2 -11.4% 717.1 Order backlog (as of end of period) MEUR 435.6 434.8 +0.2% 419.6 Decline of sal
Slide 23: Chapter Overview
CHAPTER OVERVIEW 01 Q1 2020 AT A GLANCE 02 03 04 23 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1 2020 / APRIL 30, 2020 / © ANDRITZ GROUP
Slide 24: Financial Guidance 2020 Remains Suspended
FINANCIAL GUIDANCE 2020 REMAINS SUSPENDED Negative COVID-19 impact on sales expected due to • temporary shutdown of production facilities due to governmental requirements GUIDANCE FOR 2020 REMAINS • severe global travel restrictions SUSPENDED DUE TO • lower order intake expected for coming quarters
Slide 25: Legal Disclaimer
LEGAL 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 which ma