Andritz Ag · VIE:ANDR

Andritz — H1 2021 Earnings Presentation

26 slides from Andritz's earnings presentation, Jul 30, 2021

  1. Slide 1: Results for Q2 / H1 2021

    RESULTS FOR Q2 / H1 2021 ANDRITZ GROUP JULY 30, 2021

  2. Slide 2: Chapter Overview

    CHAPTER OVERVIEW CHANGES IN THE 01 ANDRITZ EXECUTIVE BOARD 02 Q2 2021 AT A GLANCE 03 PERFORMANCE Q2 2021 04 05 OUTLOOK 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR H1 2021 / JULY 30, 2021 / © ANDRITZ GROUP

  3. Slide 3: Changes in the ANDRITZ Executive Board

    CHANGES IN THE ANDRITZ EXECUTIVE BOARD • Wolfgang Leitner to move from the Executive Board to the Supervisory Board in April 2022 (in accordance with the AktG (Stock Corporation Act – exception „Cooling off rule“) • Joachim Schönbeck, member of the Executive Board since 2014, will take over the posi

  4. Slide 4: Chapter Overview

    CHAPTER OVERVIEW CHANGES IN THE 01 ANDRITZ EXECUTIVE BOARD 02 Q2 2021 AT A GLANCE 03 PERFORMANCE Q2 2021 04 05 OUTLOOK 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR H1 2021 / JULY 30, 2021 / © ANDRITZ GROUP

  5. Slide 5: Q2 2021 at a Glance

    Q2 2021 AT A GLANCE Very favorable business development • Group order intake, at 1.9 billion euros, at high level and significantly up y/y – with all business areas showing an increase • Revenue reached 1.5 billion euros, down y/y • Lower revenue in Pulp & Paper Capital as some larger orders near co

  6. Slide 6: Chapter Overview

    CHAPTER OVERVIEW CHANGES IN THE 01 ANDRITZ EXECUTIVE BOARD 02 Q2 2021 AT A GLANCE 03 PERFORMANCE Q2 2021 04 05 OUTLOOK 6 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR H1 2021 / JULY 30, 2021 / © ANDRITZ GROUP

  7. Slide 7: Favorable Order Intake in Q2 2021 with Increase in All Business Areas

    FAVORABLE ORDER INTAKE IN Q2 2021 WITH INCREASE IN ALL BUSINESS AREAS Metals strongly up from very low level last year; Pulp & Paper and Hydro solid ORDER INTAKE Q2 2021 ORDER INTAKE BY BUSINESS AREA (IN MEUR) ORDER INTAKE H1 2021 (IN MEUR) (IN MEUR) Q2 2021 Q2 2020 +/- Pulp & Paper 867 622 +39% +18

  8. Slide 8: Quarterly Development of Order Intake

    QUARTERLY DEVELOPMENT OF ORDER INTAKE Order intake of last 4 quarters amounted to ~6.7 billion euros Service business has shown strong recovery during last quarters, ORDER INTAKE SPLIT: CAPITAL / SERVICE with Q2 2021 order intake above pre-pandemic level Q2 2021 (Q2 2020) IN % MEUR MEUR 2,500 +57% 9

  9. Slide 9: Lower Group Revenue, Mainly Driven by Pulp & Paper Capital

    LOWER GROUP REVENUE, MAINLY DRIVEN BY PULP & PAPER CAPITAL Metals down; Hydro flat, Separation rising REVENUE Q2 2021 REVENUE BY BUSINESS AREA (IN MEUR) REVENUE H1 2021 (IN MEUR) (IN MEUR) Q2 2021 Q2 2020 +/- Pulp & Paper 754 882 -15% -5% Metals 322 343 -6% Hydro 294 289 +2% 3,173 3,027 -8% Separati

  10. Slide 10: Service Business by Business Area

    SERVICE BUSINESS BY BUSINESS AREA % of total business area revenue PULP & PAPER METALS 48 51 42 46 43 41 41 24 23 27 24 25 25 22 2016 2017 2018 2019 2020 Q2 2021 H1 2021 2016 2017 2018 2019 2020 Q2 2021 H1 2021 HYDRO SEPARATION 46 47 48 49 50 43 45 45 34 38 29 28 32 26 2016 2017 2018 2019 2020 Q2 20

  11. Slide 11: Order Backlog

    ORDER BACKLOG Order backlog at 7.4 billion euros as of end of Q2 2021 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) ORDER BACKLOG BY BUSINESS AREA +0% AS OF END OF JUNE 2021 (JUNE 2020) IN % 8,121 7,778 7,925 7,724 7,397 7,330 7,404 6,974 6,849 7,084 7,261 6,774 7,071 D 6,651 6,383 6,553 6,841 6,883

  12. Slide 12: Earnings and Profitability Up

    EARNINGS AND PROFITABILITY UP Continuing favorable business development in Pulp & Paper and Separation EBITA (IN MEUR) AND EBITA MARGIN Q2 2021 (IN %) EBITA (IN MEUR) AND EBITA MARGIN H1 2021 (IN %) +36% 237.7 • Reduction of headcount by 1,100 people during last 12 months 174.3 • Positive effects fr

  13. Slide 13: Profitability by Business Area

    PROFITABILITY BY BUSINESS AREA EBITA margin (%) PULP & PAPER METALS HYDRO SEPARATION 11.0 10.4 9.7 9.6 9.9 9.7 9.2 8.3 8.4 7.2 6.6 6.5 4.8 4.1 3.2 2.0 2.4 FY 2020 Q2 2020 Q2 2021 H1 2020 H1 2021 -0.6 FY 2020 Q2 2020 Q2 2021 H1 2020 H1 2021 FY 2020 Q2 2020 Q2 2021 H1 2020 H1 2021 -2.1 -3.3 FY 2020 Q2

  14. Slide 14: EBITDA – Net Income Bridge

    EBITDA – NET INCOME BRIDGE 318.6 (258.6)* Compact Hydro 237.7 Tax rate: ~27.5% -80.9 (174.3*) 204.1 (-84.3*) -30.3 -3.3 (137.4*) 185.9 (-32.2*) (-4.7*) (119.0*) -18.2 (-18.4*) 134.8 -51.1 (83.3*) (-35.7*) IN MEUR * (H1 2020) 14 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR H1 2021 / JULY 30, 2021 / ©

  15. Slide 15: Cash Flow from Operating Activities Improved

    CASH FLOW FROM OPERATING ACTIVITIES IMPROVED 114.5 -28.3 8.3 288.8 -53.2 Split of total depreciation: (121.2)* (12.5)* • ~81 MEUR depreciation, (284.1)* (-138.2)* • ~30 MEUR IFRS 3 amortization (16.3)* 8.1 -16.2 • ~3 MEUR impairment of goodwill 0.3 -74.8 (-17.9)* in Hydro (8.3)* (0.1)* (-36.4)* 8.4

  16. Slide 16: Solid Financial Position

    SOLID FINANCIAL POSITION Gross cash of ~1.7 billion euros, net liquidity almost 400 million 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 1,8

  17. Slide 17: Key Figures Q2 / H1 2021 at a Glance

    KEY FIGURES Q2 / H1 2021 AT A GLANCE Slight improvement of cash flow, solid financial position UNIT Q2 2021 Q2 2020 +/- H1 2021 H1 2020 +/- 2020 Order intake MEUR 1,862.3 1,183.8 +57.3% 3,591.8 3,036.7 +18.3% 6,108.0 Solid financial Order backlog (as of end of period) MEUR 7,403.5 7,396.6 +0.1% 7,40

  18. Slide 18: Chapter Overview

    CHAPTER OVERVIEW CHANGES IN THE 01 ANDRITZ EXECUTIVE BOARD 02 Q2 2021 AT A GLANCE 03 PERFORMANCE Q2 2021 04 UPDATE OF BUSINESS AREAS 05 OUTLOOK 18 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR H1 2021 / JULY 30, 2021 / © ANDRITZ GROUP

  19. Slide 19: Pulp & Paper: Solid Development in Both Capital and Service

    PULP & PAPER: SOLID DEVELOPMENT IN BOTH CAPITAL AND SERVICE Favorable development of order intake; earnings up despite decline in revenue UNIT Q2 2021 Q2 2020 +/- H1 2021 H1 2020 +/- 2020 Order intake significantly up Order intake MEUR 866.8 621.6 +39.4% 1,712.3 1,699.8 +0.7% 2,961.1 q/q with solid

  20. Slide 20: Metals: Positive Earnings Development Continues

    METALS: POSITIVE EARNINGS DEVELOPMENT CONTINUES Order intake significantly higher compared to very low comparison level last year UNIT Q2 2021 Q2 2020 +/- H1 2021 H1 2020 +/- 2020 Order intake significantly up, Order intake MEUR 414.5 126.6 +227.4% 843.6 488.1 +72.8% 1,143.6 solid development of Met

  21. Slide 21: Hydro: Solid Business Development Continued

    HYDRO: SOLID BUSINESS DEVELOPMENT CONTINUED Increase in order intake; revenue practically flat; earnings and profitability up UNIT Q2 2021 Q2 2020 +/- H1 2021 H1 2020 +/- 2020 Order intake up q/q , some Order intake MEUR 370.2 246.9 +49.9% 654.5 492.4 +32.9% 1,335.4 medium-sized orders booked (e.g.

  22. Slide 22: Separation: Very Favorable Business Development

    SEPARATION: VERY FAVORABLE BUSINESS DEVELOPMENT Significant increase in order intake and revenue q/q UNIT Q2 2021 Q2 2020 +/- H1 2021 H1 2020 +/- 2020 Order intake MEUR 210.8 188.7 +11.7% 381.4 356.4 +7.0% 667.9 Order intake and revenue Order backlog (as of end of period) MEUR 484.8 470.2 +3.1% 484.

  23. Slide 23: Chapter Overview

    CHAPTER OVERVIEW CHANGES IN THE 01 ANDRITZ EXECUTIVE BOARD 02 Q2 2021 AT A GLANCE 03 PERFORMANCE Q2 2021 04 UPDATE OF BUSINESS AREAS 05 OUTLOOK 23 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR H1 2021 / JULY 30, 2021 / © ANDRITZ GROUP

  24. Slide 24: Update Market Expectations for Remaining Months of 2021

    UPDATE MARKET EXPECTATIONS FOR REMAINING MONTHS OF 2021 Continued solid outlook for all industries served by ANDRITZ Market outlook: • Pulp and Paper: Good project and investment activity is expected to continue in the remaining months of 2021; individual large-scale orders may be awarded • Metals F

  25. Slide 25: Financial Guidance for 2021 Confirmed

    FINANCIAL GUIDANCE FOR 2021 CONFIRMED Financial guidance for 2021: • Group revenue to show a slight decline compared to the previous year (2020: 6.700 MEUR) • Significant increase in reported EBITA compared to 2020 (2020: 392 MEUR) and profitability of around 8% (EBITA margin reported 2020: 5.8%) ex

  26. Slide 26: Legal Disclaimer

    LEGAL DISCLAIMER © ANDRITZ AG 2021 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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