Andritz Ag · VIE:ANDR
Andritz — Andritz Ag Graz Akt — FY 2024 Earnings Presentation
33 slides from Andritz's earnings presentation, Mar 6, 2025
Slide 1: FY 2024 Financial Results
ANDRITZ GROUP FY 2024 FINANCIAL RESULTS MARCH 6, 2025
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2025 This presentation contains forward-looking statements, which include statements about future events, future financial performance, plans, strategies, expectations, prospects, regulatory changes, and changes in customer investment activity. Such statements may be id
Slide 3: Agenda
AGENDA CEO Key Messages & 01 Q4 / FY 2024 Highlights Financial Performance 02 Q4 / FY 2024 03 Update on Business Areas 04 Outlook 2025 & Targets 2027 3
Slide 4: CEO Key Messages & Q4 / FY 2024 Highlights
01 CEO KEY MESSAGES & Q4 / FY 2024 HIGHLIGHTS 4
Slide 5: ANDRITZ achieves satisfactory results in challenging market environment
ANDRITZ ACHIEVES SATISFACTORY RESULTS IN CHALLENGING MARKET ENVIRONMENT Order intake • Slight overall decrease y/y, difficult market conditions in the first half of 2024 • Strong increase in Q4 driven by Pulp & Paper and Hydropower, book-to-bill 1 • Continued high interest in solutions enabling the
Slide 6: Solid development despite continued difficult economic environment: Q4 2024 KPIs
SOLID DEVELOPMENT DESPITE THE CONTINUED DIFFICULT ECONOMIC ENVIRONMENT Major financial KPIs Q4 2024 ORDER INTAKE REVENUE ORDER BACKLOG 2.5 billion EUR 2.3 billion EUR 9.7 billion EUR (Q4 2023: 2.0 billion EUR // +24%) (Q4 2023: 2.4 billion EUR // -7%) (Q4 2023: 9.9 billion EUR // -1%) EBITA comparab
Slide 7: Solid development despite continued difficult economic environment: FY 2024 KPIs
SOLID DEVELOPMENT DESPITE THE CONTINUED DIFFICULT ECONOMIC ENVIRONMENT Major financial KPIs FY 2024 ORDER INTAKE REVENUE DIVIDEND PER SHARE 1) 8.3 billion EUR 8.3 billion EUR 2.60 EUR (FY 2023: 8.6 billion EUR // -3%) (FY 2023: 8.7 billion EUR // -4%) (FY 2023: 2.50 EUR // +4%) EBITA comparable | ma
Slide 8: ANDRITZ continued its successful acquisition strategy
ANDRITZ CONTINUED ITS SUCCESSFUL ACQUISITION STRATEGY Major acquisitions in 2024 and so far in 2025 DIGITALIZATION DECARBONIZATION Procemex Q2 2024 HydrogenPro Q1 2024 LDX Q1 2025 Pulp & Paper Environment & Energy Environment & Energy • Acquisition of smart camera-based • Acquisition of 13.8% stake
Slide 9: Order Intake
ORDER INTAKE Slight overall decline in order intake in 2024, strong pick up in Q4 ORDER INTAKE (in MEUR) ORDER INTAKE (in MEUR) ORDER INTAKE BY REGION FY 2024 VS. FY 2023 (%) -3% Q4 2024 Q4 2023 +/- Pulp & Paper 811.6 648.6 25% 8,552 8,277 Metals 403.0 379.4 6% +24% Hydropower 941.6 610.5 54% 2,036
Slide 10: Revenue
REVENUE Slight revenue decline in 2024, growth in Service business, late pick-up in order intake REVENUE (in MEUR) REVENUE (in MEUR) REVENUE SPLIT: CAPITAL / SERIVCE FY 2024 VS. FY 2023 (%) Q4 2024 Q4 2023 +/- -4% Pulp & Paper 855.8 1,112.0 -23% 8,660 8,314 Metals 461.0 491.4 -6% -7% Hydropower 505.
Slide 11: Service Business
SERVICE BUSINESS Steadily increasing Service revenue share to an all-time high of 41% DEVELOPMENT OF TOTAL REVENUE (MEUR) VS SERVICE REVENUE (%) REVENUE SPLIT: CAPITAL / SERIVCE FY 2024 8,660 +5% 8,314 7,543 6,674 6,700 6,463 Service Capital 5,889 6,031 41% 59% 39% 38% 41% 39% 36% 40% 33% 35% 2017 2
Slide 12: Service Business
SERVICE BUSINESS Strong Service growth to an all-time high of 3,428 MEUR DEVELOPMENT OF SERVICE REVENUES 3,428 3,500 +8% 3,305 2,969 3,000 Service revenue growth 2,589 2,555 2,385 2,500 above Group level 2,084 1,967 2,000 • Increase Service revenue shareEBITA beyond 41% 2024** 1,500 • Capture life c
Slide 13: Order Backlog
ORDER BACKLOG Initial recovery of order backlog in Q4 towards 10 BEUR level Pulp & Paper and Hydropower account for ca. 2/3 of total order backlog +4% 10,822 10,569 10,408 10,361 Order backlog in MEUR 9,859 9,977 9,873 10,003 9,709 ORDER BACKLOG BY BUSINESS AREA 9,750 9,435 9,383 IN MEUR FY 2024 VS.
Slide 14: EBITA Development
EBITA DEVELOPMENT Satisfactory EBITA development, stable margins in line with guidance, comparable EBITA margin increased EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) -4% -2% 742 757 743 713 (8.6%) (8.7) (8.9) (8.6%) 233 206 244 233 • Satisfactory EBITA development in FY 2
Slide 15: On track to meet 2025 ESG targets
ON TRACK TO MEET 2025 ESG TARGETS – MANY ALREADY ACHIEVED (S t a t u s a t t h e e n d o f 2 0 2 4 ) ENVIRONMENT SOCIAL GOVERNANCE 44% Share of revenue from sustainable solutions 12% Reduction in the annual accident frequency rate 91% Procurement volume covered by assessed and products** (>1 day of
Slide 16: Financial Performance FY 2024
02 FINANCIAL PERFORMANCE FY 2024 16
Slide 17: EBITDA – Net Income Bridge FY 2024
EBITDA – NET INCOME BRIDGE FY 2024 in MEUR 887.9 (910.2)* 713.0 -174.9 (741.9)* 661.9 646.5 (-168.3)* -51.1 (685.2)* -15.4 (688.2)* Financial result (-56.7)* (3.0)* Impacted by negative valuation effects 496.5 from the change of the consolidation -150.0 (504.3)* method for the cyber security JV "Oto
Slide 18: Net Income – Cash Flow Bridge FY 2024
NET INCOME – CASH FLOW BRIDGE FY 2024 in MEUR 226.0 17.1 (225.0)* (-38.6)* (-315.4)* 24.4 Split of total depreciation • +174.9 MEUR depreciation -114.7 (28.8)* 150.0 (-193.4)* 636.5 • +51.1 MEUR IFRS 3 amortization (183.9)* -10.5 -152.3 (375.0)* 496.5 (-19.6)* (504.3)* (-226.2)* 399.0 CF from change
Slide 19: Cash Flow Development
CASH FLOW DEVELOPMENT OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW 604 567 574 • Typical working Capital 538 in MEUR in MEUR fluctuations driven by capital business 430 346 359 • Steady improvement of 300 285 cash flow generation 268 264 reflected in three-year 227 233 206 207 rol
Slide 20: Strong Financial Position
STRONG FINANCIAL POSITION Liquid funds and Net liquidity in MEUR Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR Net liquidity development 2,051 • Operating cash flow 1,838 1,787 1,702 1,772 1,719 +637 MEUR 1,610 1,517 1,507 • Capex, investments and other 1,449 1,434 -287 MEUR 1,280 • Sha
Slide 21: Proposed Dividend of 2.60 EUR/Share
PROPOSED DIVIDEND OF 2.60 EUR/SHARE Increasing dividends with average pay-out ratio above 50% DIVIDEND PER SHARE (EUR) 2.5 2.6* 2.1 1.6 1.6 1.7 1.0 0.5 2017 2018 2019 2020 2021 2022 2023 2024 * Proposal to the Annual General Meeting PAYOUT RATIO (%) 70.5 60.1 average payout ratio 48.1 50.3 50.7 48.5
Slide 22: ROIC Significantly Above WACC
ROIC SIGNIFICANTLY ABOVE WACC ROIC significantly above average cost of capital Development ROIC vs WACC 22.6% 22.5% • ROIC at continuously 20.0% high level 17.2% 16.9% • WACC stable compared to 13.0% 12.3% previous year 10.4% 10.1% 9.0% • ROIC significantly above 8.6% 8.6% 8.2% 8.2% 6.9% 7.1% WACC i
Slide 23: Key Figures Q4 / FY 2024
KEY FIGURES Q4 / FY 2024 UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 2,528.4 2,035.9 24% 8,276.9 8,551.9 -3% Order backlog (as of end of period) MEUR 9,749.9 9,872.6 -1% 9,749.9 9,872.6 -1% Revenue MEUR 2,285.6 2,446.9 -7% 8,313.7 8,660.0 -4% EBITDA MEUR 253.0 277.4 -9% 887.9 910.2 -2%
Slide 24: Update on Business Areas
03 UPDATE ON BUSINESS AREAS 24
Slide 25: Pulp & Paper
PULP & PAPER UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 811.6 648.6 25% 2,779.8 3,036.0 -8% REVENUE BY REGION Order backlog (as of end of period) MEUR 2,459.1 3,135.8 -22% 2,459.1 3,135.8 -22% FY 2024 VS. FY 2023 (%) Revenue MEUR 855.8 1,112.0 -23% 3,461.1 3,987.4 -13% EBITDA MEUR 128.
Slide 26: Metals
METALS UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 403.0 379.4 6% 1,707.2 1,997.7 -15% REVENUE BY REGION Order backlog (as of end of period) MEUR 1,965.3 2,057.1 -4% 1,965.3 2,057.1 -4% FY 2024 VS. FY 2023 (%) Revenue MEUR 461.0 491.4 -6% 1,811.2 1,839.6 -2% EBITDA MEUR 16.0 37.5 -57% 1
Slide 27: Hydropower
HYDROPOWER UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 941.6 610.5 54% 2,170.5 2,020.9 7% REVENUE BY REGION Order backlog (as of end of period) MEUR 3,933.7 3,398.8 16% 3,933.7 3,398.8 16% FY 2024 VS. FY 2023 (%) Revenue MEUR 505.4 448.3 13% 1,537.9 1,521.7 1% EBITDA MEUR 44.9 40.9 10%
Slide 28: Environment & Energy
ENVIRONMENT & ENERGY UNIT Q4 2024 Q4 2023 +/- 2024 2023 +/- Order intake MEUR 372.2 397.4 -6% 1,619.4 1,497.3 8% REVENUE BY REGION Order backlog (as of end of period) MEUR 1,391.8 1,280.9 9% 1,391.8 1,280.9 9% FY 2024 VS. FY 2023 (%) Revenue MEUR 463.4 395.2 17% 1,503.5 1,311.3 15% EBITDA MEUR 64.1
Slide 29: Guidance 2025 & Mid-Term Targets 2027
04 GUIDANCE 2025 & MID-TERM TARGETS 2027 29
Slide 30: Guidance 2025
GUIDANCE 2025 Broadly stable revenue and comparable EBITA margin (at mid-point, vs 2024) MARKET OUTLOOK 2025 GUIDANCE 2025 • Project activity is picking up across markets • Existing order backlog, book/bill ratio of 1 Revenue • Growing demand for Green technologies 8.0 - 8.3 BEUR • Growth and strong
Slide 31: Revenue Target 2027
REVENUE TARGET 2027 Revenue target 2027 Revenue growth 9 to 10 BEUR CAGR 4.5% 9 to 10 BEUR (to mid-point) Incremental growth • Accelerated growth in Service business 8.3 BEUR • Accelerated demand for Base growth Green Products • Large-scale orders • Growth in Capital sales, expansion of Service shar
Slide 32: Comparable EBITA Margin Targets 2027
COMPARABLE EBITA MARGIN TARGETS 2027 Comparable EBITA margin target range in % (changed from reported EBITA margin previously) PULP & PAPER Target 11-13% METALS 11.1 11.7 11.1 11.0 10.5 10.0 10.0 9.9 Margin Target 6-8% target 2027 5.1 5.5 4.4 3.7 >9% 2.0 0.5 2.0 2017 2018 2019 2020 2021 2022 2023 20
Slide 33: New Mid-Term Targets 2027
NEW MID-TERM TARGETS 2027 NEW MID-TERM TARGETS 2027 UPDATE OF MID-TERM TARGETS Revenue • Postponement of revenue target from 2026 to 2027 • Reflecting delay in large-scale order awards 9 - 10 BEUR • *Change from reported to comparable EBITA margin Comparable EBITA margin* • Profitability target rema