Slide 1: Results for Q3 / Q1-Q3 2020
RESULTS FOR Q3 / Q1-Q3 2020 ANDRITZ GROUP NOVEMBER 5, 2020
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2020 AT A GLANCE 02 PERFORMANCE Q3 / Q1-Q3 2020 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2020 / NOVEMBER 5, 2020 / © ANDRITZ GROUP
Slide 3: Q3 2020 at a Glance
Q3 2020 AT A GLANCE Overall a good quarter! • Group order intake at 1.7 billion euros • Pulp & Paper down as last year’s comparable quarter included a large greenfield pulp mill order Update Bild • Metals also declined due to Metals Processing; Metals Forming (Schuler) up y/y Petra • Hydro signifi
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2020 AT A GLANCE 02 PERFORMANCE Q3 / Q1-Q3 2020 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2020 / NOVEMBER 5, 2020 / © ANDRITZ GROUP
Slide 5: 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 6: Quarterly development of order intake
QUARTERLY DEVELOPMENT OF ORDER INTAKE Order intake of last 4 quarters amounted to ~6.2 bn euros ORDER INTAKE BY REGION MEUR MEUR Q1-Q3 2020 (Q1-Q3 2019) IN % 2,500 10,000 1,908 2,047 2,094 2,000 1,737 1,853 1,708 8,000 Emerging Markets: 1,658 1,470 1,532 1,560 1,341 1,467 1,533 1,469 1,483 50% (49%)
Slide 7: 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 8: Service business impacted due to travel and site access restrictions
SERVICE BUSINESS IMPACTED DUE TO TRAVEL AND SITE ACCESS RESTRICTIONS Quarterly development of service revenue (in MEUR) -11% 800 757 2,800 702 671 700 651 2,600 560 594 587 576 585 594 600 514 511 482 2,400 437 465 468 465 469 500 428 2,200 400 2,000 300 1,800 200 100 1,600 0 1,400 Q1 16 Q2 16 Q3 16
Slide 9: Service business by business area
SERVICE BUSINESS BY BUSINESS AREA % of total business area revenue PULP & PAPER METALS 48 51 37 41 42 39 40 22 24 23 27 23 23 20 2015 2016 2017 2018 2019 Q3 2020 Q1-Q3 2015 2016 2017 2018 2019 Q3 2020 Q1-Q3 2020 2020 HYDRO SEPARATION 46 47 45 45 47 50 44 29 28 32 33 33 25 26 2015 2016 2017 2018 2019
Slide 10: Solid order backlog – especially in Pulp & Paper
SOLID ORDER BACKLOG – ESPECIALLY IN PULP & PAPER Order backlog at 7.3 billion as of end of Q3 2020 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) -10% ORDER BACKLOG AS OF END OF Q3 2020 BY BUSINESS AREA 8,121 7,778 7,925 (IN %) 7,724 7,148 7,076 7,044 7,084 7,261 7,397 7,330 6,789 6,974 6,849 6,651 6,
Slide 11: 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 12: 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% 278
Slide 13: 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* 0.5** 2.3** 2.4** 0.3** -0.6** FY 2019 Q3 2
Slide 14: Q1-Q3 2020: EBITDA to net income bridge
Q1-Q3 2020: EBITDA TO NET INCOME BRIDGE Financial result improved compared Thereof, leasing to Q1-Q3 2019 mainly due to IFRS 16 (~34 MEUR) increase in other financial result (valuation of intercompany loans and bank balances in FX on balance sheet date) Metals Tax rate: ~30% 8.4%* 5.8% 4.5% 4.0% 2.8
Slide 15: Development of cash flow from operating activities (Q1-Q3 2020)
DEVELOPMENT OF CASH FLOW FROM OPERATING ACTIVITIES (Q1-Q3 2020) Decrease in net working capital Split of total depreciation: Change in Net Working Capital • ~126 MEUR depreciation mainly driven by processing of large • ~56 MEUR IFRS 3 amortization (5.5)* (381.1)* PP capital orders • ~5 MEUR impairme
Slide 16: 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) 2,350 2,048 1,815 1,772 1,850 1,702 1,595 1,610 1,556 1,517 1,449
Slide 17: Key figures Q3 2020/Q1-Q3 2020 at a glance
KEY FIGURES Q3 2020/Q1-Q3 2020 AT A GLANCE UNIT Q3 2020 Q3 2019 +/- Q1-Q3 2020 Q1-Q3 2019 +/- 2019 Order intake MEUR 1,708.0 2,093.9 -18.4% 4,744.7 5,799.1 -18.2% 7,282.0 Order backlog (as of end of period) MEUR 7,330.1 8,120.7 -9.7% 7,330.1 8,120.7 -9.7% 7,777.6 Revenue MEUR 1,669.7 1,690.2 -1.2% 4
Slide 18: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2020 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 18 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2020 / NOVEMBER 5, 2020 / © ANDRITZ GROUP
Slide 19: 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 20: 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 21: 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 22: 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 23: Chapter Overview
CHAPTER OVERVIEW 01 Q3 2020 AT A GLANCE 02 03 04 23 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR Q1-Q3 2020 / NOVEMBER 5, 2020 / © ANDRITZ GROUP
Slide 24: 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 25: 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 26: 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 27: 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