Andritz Ag · VIE:ANDR

Andritz — Investor Presentation (November 2022)

53 slides from Andritz's investor presentation, November 2022

  1. Slide 1: ANDRITZ Group: A Global Technology Leader

    INVESTOR PRESENTATION ANDRITZ GROUP: A GLOBAL TECHNOLOGY LEADER NOVEMBER 2022

  2. Slide 2: Agenda

    AGENDA 1 AN D R I T Z AT A G L AN C E 2 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / © ANDRITZ GROUP

  3. Slide 3: The ANDRITZ Group

    THE ANDRITZ GROUP REVENUE BY REGION 2021 AN D R I T Z i s a g l o b a l l y l e a d i n g s u p p l i e r of plants, equipment, systems, and services for the pulp and paper industry, the metalworking and steel industries, Europe & North America: 6,463 Emerging markets: hydropower stations, pumps, so

  4. Slide 4: A World Market Leader with Four Business Areas

    A WORLD MARKET LEADER WITH FOUR BUSINESS AREAS PULP & PAPER METALS HYDRO SEPARATION Pulp: #1-2 Forming: #1 #1-2 in sludge #1-2 Paper: #1-3 Processing: #1-2 dewatering & drying 48%* 22%* 20%* 10%* • Equipment for production of all • Presses/press lines for metal • Electromechanical equipment • Equipm

  5. Slide 5: Strengthening of Market Position by Acquisitions

    STRENGTHENING OF MARKET POSITION BY ACQUISITIONS Acquisitions by business area since 2000 PULP & PAPER METALS HYDRO SEPARATION 2000 Ahlstrom Machinery 2011 AE&E Austria 2000 Kohler 2006 VA TECH HYDRO 2000 UMT 2000 Lamb Baling Line 2011 Iggesund Tools 2002 SELAS SAS Furnace Div. 2007 Tigép 2002 3SYS

  6. Slide 6: ANDRITZ's Development Since 2017 (I)

    ANDRITZ‘S DEVELOPMENT SINCE 2017 (I) in MEUR GROUP ORDER INTAKE GROUP REVENUE 12,000 10,278 12,000 10,000 10,000 7,282 7,880 3,337 8,000 6,646 8,000 6,674 6,700 6,463 7,122 5,580 6,108 5,889 6,032 6,000 2,800 2,766 6,000 2,214 2,646 2,443 2,608 2,888 1,993 2,413 2,017 2,139 4,000 4,000 6.941 2,000 4

  7. Slide 7: ANDRITZ's Development Since 2017 (II)

    ANDRITZ‘S DEVELOPMENT SINCE 2017 (II) EBITA AND EBITA MARGIN* (REPORTED) EBITA AND EBITA MARGIN* (ADJUSTED) 607 605 547 550 456 471 444 416 415 394 392 8.5% 8.5% 8.5% 8.5% 343 7.5% 7.1% 7.0% 6.5% 6.9% 6.8% 5.8% 5.1% 2017 2018 2019 2020 2021 Q3 22 L4Q** 2017 2018 2019 2020 2021 Q3 22 L4Q** * EBITA (I

  8. Slide 8: Global Presence

    GLOBAL PRESENCE Around 27,900 employees and 280 production sites and service/sales companies worldwide North America Europe 14,130 China 3,941 3,683 Asia-Pacific 2,191 South America 3,980 8 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / © ANDRITZ GROUP

  9. Slide 9: Financial Key Figures

    FINANCIAL KEY FIGURES Last four quarters Q3 2022 • Order intake 10,278 MEUR REVENUE EBITA • Revenue 7,122 MEUR 761 77 • Order backlog (as of 30.09.2022) 1,486 in 3,331 113 in 10,822 MEUR MEUR MEUR 362 • EBITA 55 1,545 607 MEUR • EBITA margin 8.5% Pulp & Paper Metals Hydro Separation 9 / ANDRITZ / IN

  10. Slide 10: Service Business by Business Area

    SERVICE BUSINESS BY BUSINESS AREA % of total business area revenue PULP & PAPER METALS % MEUR % MEUR 100 100 500 1500 48 51 41 45 47 48 50 1000 50 23 27 24 25 26 25 250 500 0 0 0 0 2018 2019 2020 2021 Q3 2022 Q1-Q3 2018 2019 2020 2021 Q3 2022 Q1-Q3 2022 2022 Share in % Service revenue (last 4 quarte

  11. Slide 11: Group Strategy and Long-Term Goals

    GROUP STRATEGY AND LONG-TERM GOALS S A F E T Y, T E C H N O L O G I C A L & C O S T L E A D E R S H I P EXTEND M ARKET POSITION • Become preferred supplier • Serving markets with long-term growth • Development of innovative and sustainable potential technologies • Extending existing position in Euro

  12. Slide 12: EBITA Margin Goals for Business Areas

    EBITA MARGIN GOALS FOR BUSINESS AREAS EBITA margin by business area (in %) PULP & PAPER METALS 11,3 10,9 9,9 Target 9,5 9,4 9,7 10-11% 6,0 Target 6-7% 3,6 2,8 1,7 2017 2018 2019 2020 2021 Q3 22 L4Q* 2017 2018 2019 2020 2021 Q3 22 L4Q* -3,3 -4,5 HYDRO SEPARATION 9,8 10,1 Target 7,8 8,3 9-11% 7,5 7,2

  13. Slide 13: Cash Flow Development

    CASH FLOW DEVELOPMENT Intensive Working Capital Management and reasonable capex in fixed assets support cash conversion rate above 85% and FCF > 300 MEUR OPERATING AND FREE CASHFLOW OF THE ANDRITZ GROUP (IN MEUR) 822 665 530 462 434 361 347 367 370 342 330 264 5y avg. 240 246 247 273 MEUR 179 (FCF)

  14. Slide 14: Continued Solid Financial Position

    CONTINUED SOLID FINANCIAL POSITION Gross liquidity of ~2.0 billion euros, net liquidity at ~900 million euros Note: Since January 1, 2019, lease liabilities are excluded from the calculation of net liqudity; 2018 adjusted IN MEUR Acquisition Schuler: 600 MEUR 2,350 Acquisition Xerium: 2.048 770 MEUR

  15. Slide 15: Solid Equity Ratio Above 20% Reached

    SOLID EQUITY RATIO ABOVE 20% REACHED TOTAL SHAREHOLDERS‘ EQUITY (IN MEUR) 1.839 EQUITY RATIO (IN %) 21.7 20.4 21.0 21.2 19.2 17.3 17.8 21.7 1.567 16.7 16.9 1.344 1.325 1.331 1.256 1.216 1.220 1.038 5.6* 6.0 5.8 6.2 6.3 6.9 7.2 7.1 7.7 8.5 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1-Q3 929 22 GOO

  16. Slide 16: ANDRITZ Pursues a Dividend Policy Towards Continuity

    ANDRITZ PURSUES A DIVIDEND POLICY TOWARDS CONTINUITY Goal is to distribute an average of 50%-60% of EPS DIVIDEND PER SHARE (EUR) 1.50 1.55 1.55 1.65 1.20 1.35 1.00 1.00 0.50 0.50 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 EARNINGS PER SHARE (EUR) 3.28 2.60 2.69 2.58 2.35 2.20 2.04 2.08 1.27 0

  17. Slide 17: R&D Focuses on Global Megatrends

    R&D FOCUSES ON GLOBAL MEGATRENDS R&D focus areas • Green products • Decarbonization • Digitalization 329 6,250 107 MEUR New patent Patent protection spent in 2021 for R&D applications in 2021 rights 17 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / © ANDRITZ GROUP

  18. Slide 18: "We Care" - The ANDRITZ ESG Program

    „WE CARE“ - THE ANDRITZ ESG PROGRAM Sustainability has always been an integral part of ANDRITZ’s corporate policy It is a decisive factor in order to be successful in the long-term and is an important element of the company's corporate policy and strategy OUR ESG VISION We are amongst the best in cl

  19. Slide 19: Our ESG Goals at a Glance

    WHAT WE WANT TO ACHIEVE: OUR ESG GOALS AT A GLANCE • Reduce green house gas • Reduce annual accident • Audited suppliers by 2025* GOVERNANCE ENVIRONMENTAL SOCIAL emissions by 50% until frequency rate (>1 day‘s 85% of procurement volume end of 2025 absence) by 30% compared to the preceding year • Imp

  20. Slide 20: Biomethanol Processing Plant for Metsä Fibre, Finland

    BIOMETHANOL PROCESSING PLANT FOR METSÄ FIBRE, FINLAND ANDRITZ technology contributes to CO 2 reduction Biomethanol processing plant • Delivery of the world's largest biomethanol processing plant for Södra Cellin in Mönsterås, Sweden Metsä Fibre's bioproducts plant in Finland • Production of 17.5 mil

  21. Slide 21: Equipment for Large Pumped-Storage Power Plant in India

    EQUIPMENT FOR LARGE PUMPED -STORAGE POWER PLANT IN INDIA Integrated solution from solar power and hydropower • Delivery of the electromechanical equipment for the new 1,680 MW Gandhi Sagar pumped storage power plant in India, Madhya Pradesh • Customer is the private company Greenko → largest Indian

  22. Slide 22: Group Roadmap 2022-2024

    GROUP ROADMAP 2022-2024 • Group business volume well above 7 billion EUR, including M&A towards 8 billion EUR • EBITA margin at solid 8% • Net income to increase to >5% • Continue M&A strategy within existing business areas • Reach ESG targets 22 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / ©

  23. Slide 23: Our Mission, Vision, and Values

    OUR MISSION, VISION, AND VALUES „We love what we do and we do everything to make sure that our customers succeed“ OUR MISSION OUR VISION OUR VALUES We drive the success of our customers through In our chosen markets, we are global leaders We at ANDRITZ all share the same core values innovative and q

  24. Slide 24: Investment Highlights

    AGENDA 2 INVESTMENT HIGHLIGHTS 24 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / © ANDRITZ GROUP

  25. Slide 25: Strong Competitive Position in Long-Term Growing Markets

    STRONG COMPETITIVE POSITION IN LONGTERM GROWING MARKETS • PULP & PAPER: market growth driven by demand for cellulosic fibers for packaging, hygiene and also textiles; sustainability goals of the pulp & paper industry urge investments in green solutions • METALS: trends towards carbon-neutral product

  26. Slide 26: Major Developments and Achievements: Pulp & Paper

    MAJOR DEVELOPMENTS AND ACHIEVEMENTS DURING THE LAST YEARS Pulp & Paper • Several greenfield pulp mill orders received confirm strong competitive position • Market leader in high-capacity fiberlines THE ROAD AHEAD: • Continue to grow business volume and • Market leader in viscose pulp profitability •

  27. Slide 27: Major Developments and Achievements: Metals

    MAJOR DEVELOPMENTS AND ACHIEVEMENTS DURING THE LAST YEARS Metals Forming • Full restructuring and capacity reductions: cost base adjusted to lower market volume → Turnaround achieved THE ROAD AHEAD: • Successful development of “B-segment” • Keep competitive cost base • Receipt of several reference o

  28. Slide 28: Major Developments and Achievements: Hydro

    MAJOR DEVELOPMENTS AND ACHIEVEMENTS DURING THE LAST YEARS Hydro • Resized corporate structure and capacities to market volume • Satisfactory profitability despite decline in revenue THE ROAD AHEAD: • Maintain/improve profitability • Receipt of several reference orders • Further expand business in re

  29. Slide 29: Major Developments and Achievements: Separation

    MAJOR DEVELOPMENTS AND ACHIEVEMENTS DURING THE LAST YEARS Separation • Establishment as major global player in growing markets (starch, lithium, sludge separation/drying) THE ROAD AHEAD: • Strong expansion of digital product portfolio • Enter new fast growing markets, and offerings (IIOT solutions)

  30. Slide 30: Financials

    AGENDA 3 F I N AN C I AL S 30 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / © ANDRITZ GROUP

  31. Slide 31: Very Favorable Business Development in Q3 2022

    VERY FAVORABLE BUSINESS DEVELOPMENT IN Q3 2022 ANDRITZ GROUP key figures at a glance V E RY H I G H O R D E R I N TAK E RECORD E B I TA AT 1 5 3 M E U R AT 2 . 7 B N E U R O S O R D E R B AC K L O G AN D M AR G I N AT 8 . 1 % Four quarters in a row with order intake of Record order backlog of almost

  32. Slide 32: Key Figures Q3 / Q1-Q3 2022 at a Glance

    KEY FIGURES Q3 / Q1-Q3 2022 AT A GLANCE Q3 Q3 Q1-Q3 Q1-Q3 UNIT +/- +/- 2021 2022 2021 2022 2021 Order intake MEUR 2,683.4 1,461.0 +83.7% 7,451.0 5,052.8 +47.5% 7,879.7 Order backlog MEUR 10,822.2 7,341.9 +47.4% 10,822.2 7,341.9 +47.4% 8,165.8 (as of end of period) Revenue MEUR 1,890.8 1,521.5 +24.3%

  33. Slide 33: Pulp & Paper: Continued Favorable Business Development

    PULP & PAPER: CONTINUED FAVORABLE BUSINESS DEVELOPMENT Strong increase in order intake; revenue and earnings up q/q Q3 Q3 Q1-Q3 Q1-Q3 UNIT +/- +/- 2021 2022 2021 2022 2022 ORDER INTAKE BY REGION Order intake MEUR 1,547.6 602.3 +156.9% 3,628.4 2,314.6 +56.8% 3,774.7 Q1-Q3 2022 VS. Q1-Q3 2021 (%) Orde

  34. Slide 34: Metals: Strong Increase in Order Intake and Revenue

    METALS: STRONG INCREASE IN ORDER INTAKE AND REVENUE Earnings up, however margin down due Metals Processing Q3 Q3 Q1-Q3 Q1-Q3 UNIT +/- +/- 2021 2022 2021 2022 2021 ORDER INTAKE BY REGION Order intake MEUR 564.1 362.3 +55.7% 1,554.8 1,205.9 +28.9% 1,778.8 Q1-Q3 2022 VS. Q1-Q3 2021 (%) Order backlog (a

  35. Slide 35: Hydro: Favorable Business Development

    HYDRO: FAVORABLE BUSINESS DEVELOPMENT Increase in order intake and revenue; earnings and profitability up q/q Q3 Q3 Q1-Q3 Q1-Q3 UNIT +/- +/- 2021 2022 2021 2022 2021 ORDER INTAKE BY REGION Order intake MEUR 356.9 320.8 +11.3% 1,571.0 975.3 +61.1% 1,565.2 Q1-Q3 2022 VS. Q1-Q3 2021 (%) Order backlog (

  36. Slide 36: Separation: Very Favorable Business Development Continues

    SEPARATION: VERY FAVORABLE BUSINESS DEVELOPMENT CONTINUES Strong increase in order intake, revenue, and earnings q/q Q3 Q3 Q1-Q3 Q1-Q3 UNIT +/- +/- 2021 2022 2021 2022 2022 ORDER INTAKE BY REGION Q1-Q3 2022 VS. Q1-Q3 2021 (%) Order intake MEUR 214.8 175.6 +22.3% 696.8 557.0 +25.1% 761.0 Order backlo

  37. Slide 37: Market Outlook and Financial Guidance

    MARKET OUTLOOK AND FINANCIAL GUIDANCE Financial guidance 2022 confirmed OUTLOOK • Project and investment activity in the industries served by ANDRITZ expected to remain solid during next months • Geo-economical challenges (Russian sanctions, supply chain disruptions, inflation) are closely monitored

  38. Slide 38: Appendix

    AGENDA 4 AP P E N D I X 38 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2022 / © ANDRITZ GROUP

  39. Slide 39: Group Order Intake Development Since 2012

    GROUP ORDER INTAKE DEVELOPMENT SINCE 2012 Capital vs. Service 12,000 10,278 10,000 7,880 3,337 8,000 7,282 6,646 6,101 6,018 6,108 2,766 6,000 5,611 5,569 5,580 4,924 2,800 1,794 2,214 1,619 1,892 2,413 1,983 1,993 4,000 1,424 6,941 4,482 5,114 2,000 3,992 4,307 4,126 4,432 3,500 3,585 3,587 3,696 0

  40. Slide 40: Group Revenue Development Since 2012

    GROUP REVENUE DEVELOPMENT SINCE 2012 Capital vs. Service 12,000 10,000 8,000 7,122 6,377 6,674 6,700 6,463 5,859 6,039 5,889 6,031 6,000 5,711 5,177 2,443 2,888 1,898 2,646 2,608 1,627 1,696 1,931 2,017 2,139 1,318 4,000 2,000 3,859 4,084 4,164 4,479 4,109 3,872 3,893 4,028 4,257 3,855 4,234 0 2012

  41. Slide 41: Group Order Backlog Development Since 2012

    GROUP ORDER BACKLOG DEVELOPMENT SINCE 2012 By business area 12,000 10,822 668.5 10,000 8,166 7,511 7,778 3,461 8,000 7,389 7,324 499 7,084 420 6,615 353 361 352 6,789 6,774 6,383 404 303 347 414 6,000 365 2,661 2,748 2,053 3,722 3,709 3,641 2,668 2,588 3,270 2,922 3,842 1,542 4,000 1,533 1,592 1,182

  42. Slide 42: Pulp & Paper: Key Financials Since 2012

    PULP & PAPER: KEY FINANCIALS SINCE 2012 ORDER INTAKE (MEUR) EBITA (MEUR) 5,089 400 346 362 5000 323 3,633 3,775 271 4000 2,961 300 222 3000 2,264 2,572 191 182 195 1,962 1,908 1,996 1,920 2,033 200 135 2000 103 1000 100 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 2012 2013 2014 2015

  43. Slide 43: Metals: Key Financials Since 2012

    METALS: KEY FINANCIALS SINCE 2012 ORDER INTAKE (MEUR) EBITA (MEUR) 2,128 1,932 1,779 2000 1,693 1,552 1,607 1,582 150 115 1,439 110 99 1,234 1,144 100 54 71 1000 55 25 27 38 324 50 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 -50

  44. Slide 44: Hydro: Key Financials Since 2012

    HYDRO: KEY FINANCIALS SINCE 2012 ORDER INTAKE (MEUR) EBITA (MEUR) 2,008 2,161 200 147 1,865 1,817 1,719 153 145 145 2000 1,500 1,565 150 128 123 1,317 1,446 1,350 1,335 114 106 113 95 100 62 1000 50 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 2012 2013 2014 2015 2016 2017 2018 2019 2

  45. Slide 45: Separation: Key Financials Since 2012

    SEPARATION: KEY FINANCIALS SINCE 2012 ORDER INTAKE (MEUR) EBITA (MEUR) 1000 901 100 717 761 77 800 629 697 668 80 67 604 596 597 598 622 54 600 60 45 40 400 40 28 31 22 22 17 200 20 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 -20 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2

  46. Slide 46: Group Order Intake and Group Revenue Split in 2021

    GROUP ORDER INTAKE AND GROUP REVENUE SPLIT IN 2021 Business areas vs. regions ORDER INTAKE SPLIT REVENUE SPLIT 10% 10% 20% 21% 48% 48% 22% 21% Pulp & Paper Metals Hydro Separation Pulp & Paper Metals Hydro Separation 4% 4% 13% 17% 33% 31% Emerging Europe / Emerging Europe / 12% markets North America

  47. Slide 47: Order Intake and Revenue by Business Area and Region

    ORDER INTAKE AND REVENUE BY BUSINESS AREA AND REGION 2021 PULP & PAPER METALS Order intake by region Order intake by region 2% 0% 10% 23% 31% 33% Emerging Europe / Emerging Europe / markets 10% North America markets North America 54% 46% 35% 65% 11% 1% 32% 15% 32% Europe North America South America

  48. Slide 48: Order Intake and Revenue by Business Area and Region

    ORDER INTAKE AND REVENUE BY BUSINESS AREA AND REGION 2021 HYDRO SEPARATION Order intake by region Order intake by region 7% 13% 7% 26% 12% Emerging Europe / Emerging 33% Europe / markets North America markets North America 43% 57% 41% 12% 59% 19% 31% 10% 4% 25% Europe North America South America Asi

  49. Slide 49: Group Order Intake Development Since 2012 per Region

    GROUP ORDER INTAKE DEVELOPMENT SINCE 2012 Per region (MEUR) EUROPE ASIA (WITHOUT CHINA) 2,135 2,301 2,283 2,160 2,315 2,251 2,347 2,384 2,402 2,252 2,165 1,762 765 708 793 732 995 895 902 966 627 640 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 2012 2013 2014 2015 2016 2017 2018 2019 2020

  50. Slide 50: Group Revenue Development Since 2012 per Region

    GROUP REVENUE DEVELOPMENT SINCE 2012 Per region (MEUR) EUROPE ASIA (WITHOUT CHINA) 1,917 2,473 2,405 2,473 2,158 2,192 2,361 2,327 2,279 2,136 2,173 806 708 780 813 899 832 804 1,000 658 625 642 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q3 22 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

  51. Slide 51: Order Intake Split by Business Area in 2021

    ORDER INTAKE SPLIT BY BUSINESS AREA IN 2021 Per region (in %) EUROPE NORTH AMERICA SOUTH AMERICA 11% 11% 5% 6% 1% 17% 31% 27% 48% 89% 25% 31% Pulp & Paper Metals Hydro Separation Pulp & Paper Metals Hydro Separation Pulp & Paper Metals Hydro Separation ASIA (WITHOUT CHINA) CHINA AFRICA, AUSTRALIA 9%

  52. Slide 52: Revenue Split by Business Area in 2021

    REVENUE SPLIT BY BUSINESS AREA IN 2021 Per region (in %) EUROPE NORTH AMERICA SOUTH AMERICA 10% 14% 8% 10% 19% 3% 21% 39% 45% 79% 26% 26% Pulp & Paper Metals Hydro Separation Pulp & Paper Metals Hydro Separation Pulp & Paper Metals Hydro Separation ASIA (WITHOUT CHINA) CHINA AFRICA, AUSTRALIA 11% 10

  53. Slide 53: Legal Disclaimer

    LEGAL DISCLAIMER © ANDRITZ AG 2022 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

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