Slide 1: Results for Q1 2018
RESULTS FOR Q1 2018 ANDRITZ GROUP MAY 3, 2018
Slide 2: Group sales: slow start into the year
GROUP SALES: SLOW START INTO THE YEAR Sales in the coming months are expected to make up for the lower figure in Q1 2018. SALES (MEUR) SALES BY BUSINESS AREA (MEUR) Q1 2018 Q1 2017 +/- -7% 1,386 Hydro 350 356 -2% 1,291 Pulp & Paper 459 509 -10% Metals 348 398 -13% Separation 135 124 +9% SALES BY REG
Slide 3: Group order intake: solid development
GROUP ORDER INTAKE: SOLID DEVELOPMENT High order intake in Hydro, Metals, and Separation; Pulp & Paper significantly below very high reference figure of Q1 2017. ORDER INTAKE (MEUR) ORDER INTAKE BY BUSINESS AREA (MEUR) -2% Q1 2018 Q1 2017 +/- 1,560 1,533 Hydro 435 310 +40% Pulp & Paper 457 653 -30%
Slide 4: Group order backlog slightly above year-end 2017
GROUP ORDER BACKLOG SLIGHTLY ABOVE YEAR-END 2017 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) -6% +3% 7,324 6,789 6,974 6,383 6,553 2015 2016 Q1 2017 2017 Q1 2018 ORDER BACKLOG BY BUSINESS AREA (AS OF END OF PERIOD; IN MEUR) HYDRO AND PULP & PAPER ACCOUNT FOR 73% OF TOTAL BACKLOG Q1 2018 Q1 2017 +/-
Slide 5: Earnings and profitability significantly down, mainly due to lower sales
EARNINGS AND PROFITABILITY SIGNIFICANTLY DOWN, MAINLY DUE TO LOWER SALES Earnings / profitability in Metals impacted by lower sales and cost overruns on some projects. EBITA (MEUR) -26% • EBITA, at 71.7 MEUR, significantly below the previous year’s reference figure (-26% 97.4 versus Q1 2017: 97.4 ME
Slide 6: Key figures Q1 2018 at a glance
KEY FIGURES Q1 2018 AT A GLANCE UNIT Q1 2018 Q1 2017 +/- 2017 Order intake MEUR 1,532.8 1,560.0 -1.7% 5,579.5 Order backlog (as of end of period) MEUR 6,553.2 6,974.2 -6.0% 6,383.0 Sales MEUR 1,291.0 1,386.2 -6.9% 5,889.1 Decrease mainly due to EBITDA MEUR 93.8 120.7 -22.3% 541.7 lower average net l
Slide 7: Hydro (1): unchanged challenging market environment
HYDRO (1): UNCHANGED CHALLENGING MARKET ENVIRONMENT Selective award of individual projects in Africa, Asia, and South America. ANDRITZ will refurbish supply hydro- the E.B. andCampbell electromechanical hydroelectric • New hydropower plants power equipment station for from the new SaskPower, Abdelmo
Slide 8: Hydro (2): order intake up from low level of last year's reference period
HYDRO (2): ORDER INTAKE UP FROM LOW LEVEL OF LAST YEAR‘S REFERENCE PERIOD Earnings and profitability practically at the same level as for Q1 2017. UNIT Q1 2018 Q1 2017 +/- 2017 Order intake significantly up; it includes large pumped Order intake MEUR 434.8 309.5 +40.5% 1,317.2 storage order from Mor
Slide 9: Pulp & Paper (1): continued solid market environment
PULP & PAPER (1): CONTINUED SOLID MARKET ENVIRONMENT • Pulp ANDRITZ will supply a large paper machine for the production of bleached kraft paper grades to Zellstoff Pöls AG, Austria. Satisfactory project and investment activity, particularly for modernization of existing pulp mills. No contracts wer
Slide 10: Pulp & Paper (2): decrease in order intake and sales
PULP & PAPER (2): DECREASE IN ORDER INTAKE AND SALES Earnings and profitability down due to lower sales and investments in digitalization business. Order intake significantly UNIT Q1 2018 Q1 2017 +/- 2017 below high Q1 2017 which included several medium- Order intake MEUR 457.4 653.3 -30.0% 2,033.4
Slide 11: Metals (1): satisfactory project and investment activity in metal forming
METALS (1): SATISFACTORY PROJECT AND INVESTMENT ACTIVITY IN METAL FORMING Project activity in Metals processing market continued to increase slightly. • Metal Forming Satisfactory project and investment activity; first orders for press lines in “automotive new markets”; favorable development of Yado
Slide 12: Metals (2): earnings and profitability significantly lower
METALS (2): EARNINGS AND PROFITABILITY SIGNIFICANTLY LOWER Lower sales and cost overruns on some projects. Significant increase in order UNIT Q1 2018 Q1 2017 +/- 2017 intake in Metal Forming (Schuler) which booked some orders for press lines in Order intake MEUR 467.8 442.7 +5.7% 1,606.5 Asia (autom
Slide 13: Separation (1): good project and investment activity continued
SEPARATION (1): GOOD PROJECT AND INVESTMENT ACTIVITY CONTINUED Mainly for solid/liquid separation equipment. • Municipal Investment activity at good levels (sewage sludge drying), mainly in developed markets. • Industrial Good project activity in mining and minerals (especially the lithium market);
Slide 14: Separation (2): increase in order intake and sales
SEPARATION (2): INCREASE IN ORDER INTAKE AND SALES Especially for solid/liquid separation equipment. Significant increase in order UNIT Q1 2018 Q1 2017 +/- 2017 intake for solid/liquid separation equipment; solid Order intake MEUR 172.8 154.5 +11.8% 622.4 order intake in feed & biomass pelleting. Or
Slide 15: Outlook for remainder of 2018
OUTLOOK FOR REMAINDER OF 2018 Good project activity on markets served by ANDRITZ; unchanged expectations for 2018. Hydro Pulp & Paper Metals Separation stable +/- stable + stable +/- stable + • Project activity for modernizations • Project and investment activity to • Project activity in Metal Formi
Slide 16: 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