Andritz Ag · VIE:ANDR
Andritz — Q1 2023 Earnings Presentation
28 slides from Andritz's earnings presentation, Apr 27, 2023
Slide 1: Results Q1 2023
ANDRITZ GROUP RESULTS Q1 2023 APRIL 27, 2023
Slide 2: Agenda
AGENDA 1 C H AN G E I N R E P O R T I N G S T R U C T U R E
Slide 3: Change in reporting structure (I)
CHANGE IN REPORTING STRUCTURE (I) Adjusting ANDRITZ‘ product portfolio according to markets and business model • The Pumps business (previously reported in the Hydro business area) and some products of the Pulp & Paper business area that are mainly supplied to customers outside the pulp & paper indu
Slide 4: Change in reporting structure (II)
CHANGE IN REPORTING STRUCTURE (II) Adjusting ANDRITZ‘ product portfolio according to markets and business model Based on Revenue FY 2022 PULP & PAPER METALS HYDRO SEPARATION 3,591.1 MEUR 1,621.2 MEUR 1,539.0 MEUR 791.6 MEUR 48% 22% 20% 10% Pumps + Pumps 226.0 MEUR non-Pulp & Paper related products (
Slide 5: Agenda
AGENDA 2 Q 1 2 0 2 3 AT A G L AN C E
Slide 6: Favorable business development in Q1 2023
FAVORABLE BUSINESS DEVELOPMENT IN Q1 2023 Financial highlights GROUP GR OU P O R D ER IN TA K E G R O U P R EVEN U E O R D ER B A C K L OG 2.4 billion EUR 2.0 billion EUR 10.4 billion EUR (Q1 2022: 2.6 billion EUR / -7%) (Q1 2022: 1.5 billion EUR / +29%) (Q1 2022: 9.4 billion EUR / +10%) EB ITA ( r
Slide 7: Agenda
AGENDA 3 P E R F O R M AN C E Q 1 2 0 2 3
Slide 8: Group order intake reached a favorable level
GROUP ORDER INTAKE REACHED A FAVORABLE LEVEL Pulp & Paper and Hydro below Q1 2022, which included larger orders; Metals significantly up ORDER INTAKE* ORDER INTAKE BY BUSINESS AREA* ORDER INTAKE BY REGION Q1 2023 VS. Q1 2022 (%) -7% Q1 2023 Q1 2022 +/- Pulp & Paper 993 1,079 -8% Europe / Rest of Wor
Slide 9: Significant increase of revenue
SIGNIFICANT INCREASE OF REVENUE Increase in all four business areas as a result of the very favorable order intake development REVENUE* REVENUE BY BUSINESS AREA* REVENUE SPLIT: CAPITAL / SERVICE Q1 2023 VS. Q1 2022 (%) +29% Q1 2023 Q1 2022 +/- Pulp & Paper 908 695 +31% Service Metals 422 357 +18% Ca
Slide 10: Stable and recurring service business supports profitability
STABLE AND RECURRING SERVICE BUSINESS SUPPORTS PROFITABILITY Share of Group and business area revenue in % ANDRITZ GROUP PULP & PAPER METALS 48 44 44 39 42 27 24 25 25 24 40 40 40 39 36 2019 2020 2021 2022 Q1 2023 2019 2020 2021 2022 Q1 2023 HYDRO SEPARATION 47 48 46 49 42 41 44 36 39 36%* 40%* 36%*
Slide 11: Order backlog at 10.4 billion euros as of end of Q1 2023
ORDER BACKLOG AT 10.4 BILLION EUROS AS OF END OF Q1 2023 Pulp & Paper and Hydro account for ~70% of total order backlog ORDER BACKLOG BY BUSINESS AREA Q1 2023 VS. Q1 2022 IN MEUR +10% Separation IN MEUR 10,822 10,408 10% 9,859 9,977 9,435 (9%) 8,121 8,166 Pulp & Paper 7,724 7,778 7,925 7,261 7,397 7
Slide 12: Earnings significantly up; profitability improved vs. Q1 2022
EARNINGS SIGNIFICANTLY UP; PROFITABILITY IMPROVED VS. Q1 2022 Profitability increase in Metals and Separation EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* EBITA (reported) significantly up. (REPORTED) (ADJUSTED) Profitability at 8.1% (Q1: 2022: 8.0%) +30% +37% 158.5 160.3 EBITA margin (adjusted)
Slide 13: Profitability by business area
PROFITABILITY BY BUSINESS AREA EBITA margin (reported, in %) PULP & PAPER METALS HYDRO SEPARATION 10.5 9.9 9.8 9.8 6.0 6.0 4.6 4.6 4.9* 4.0* Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 * EBITA margin adjusted by extraordinary items • Pulp & Paper and Hydro profitability remained
Slide 14: EBITDA – Net income bridge
EBITDA – NET INCOME BRIDGE IN MEUR 200.4 (163.4)* TAX RATE: 25.6% 158.5 146.0 -41.9 (122.3)* 137.7 (-41.1)* -12.5 (106.3)* -8.3 (95.6)* (-16.0)* (-10.7)* 102.5 -35.2 (70.2)* (-25.4)* 10.2%** 8.1%** 7.4%** 7.0%** 5.2%** * ( ) Q1 2022 ** % of total revenue 14 / RESULTS OF THE ANDRITZ GROUP FOR Q1 2023
Slide 15: Cash flow from operating activities
CASH FLOW FROM OPERATING ACTIVITIES IN MEUR 54.4 (57.1)* Change in NWC: -7.8 ~147 MEUR increase in contract assets (-) (-29.8)* ~100 MEUR decrease in receivables (+) 35.2 ~84 MEUR increase in inventories (-) ~29 MEUR decrease in liabilities (-) (25.4)* -3.9 ~15 MEUR increase in advance payments made
Slide 16: Solid financial position
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 2,350 Acquisition Xerium: 770 MEUR 2,051 1,974 1,838 1,850 1,772 1,719 Strong in
Slide 17: Key figures Q1 2023 at a glance
KEY FIGURES Q1 2023 AT A GLANCE UNIT Q1 2023 Q1 2022 +/- 2022 Order intake MEUR 2,420.2 2,588.6 -6.5% 9,263.4 Order backlog (as of end of period) MEUR 10,407.8 9,435.1 +10.3% 9,976.5 Revenue MEUR 1,962.6 1,526.9 +28.5% 7,542.9 EBITDA MEUR 200.4 163.4 +22.6% 825.5 Decrease in cash flow EBITDA margin
Slide 18: Agenda
AGENDA Q1 2023 4 U P D AT E O F B U S I N E S S AR E AS
Slide 19: Two new members to Executive Board
TWO NEW MEMBERS TO EXECUTIVE BOARD As of April 1, 2023 Frédéric Sauze Dietmar Heinisser Member of the Executive Board Member of the Executive Board Hydro business area Separation business area • In the energy business over 30 years • With ANDRITZ for 25 years • With ANDRITZ since 2013 • Austrian cit
Slide 20: Pulp & Paper: continued favorable business development
PULP & PAPER: CONTINUED FAVORABLE BUSINESS DEVELOPMENT Strong increase in revenue and earnings; profitability slightly down UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 993.3 1,079.3 -8.0% 4,296.4 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 4,279.5 3,83
Slide 21: Metals: strong increase in order intake and revenue
METALS: STRONG INCREASE IN ORDER INTAKE AND REVENUE Earnings significantly up q/q in line with revenue UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 669.4 501.4 +33.5% 2,008.6 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 2,167.8 1,704.8 +27.2% 1,938.1 Rev
Slide 22: Hydro: good business development
HYDRO: GOOD BUSINESS DEVELOPMENT Revenue and earnings favorably up q/q; solid margin UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 429.3 703.5 -39.0% 1,720.5 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 2,963.6 2,987.4 -0.8% 2,878.4 Revenue MEUR 355.6 247
Slide 23: Greenko partners with ANDRITZ for intelligent 24/7 green energy storage
GREENKO PARTNERS WITH ANDRITZ FOR INTELLIGENT 24/7 GREEN ENERGY STORAGE Pumped storage power plant: • Greenko is the largest Indian producer of electricity from Electricity from solar and wind power is used to pump water up into the upper exclusively renewable energy sources basin; at peak times, th
Slide 24: Greenko awarded ANDRITZ in 2020 with its first pumped storage plant
GREENKO AWARDED ANDRITZ IN 2020 WITH ITS FIRST PUMPED STORAGE PLANT A repeat order was awarded in 2022 © Usage rights granted by customer PSP Pinnapuram, India PSP Gandhi Sagar, India 1,680 MW 1,440 MW (expandable to 1,680 MW) Pumped hydroelectric storage plant from ANDRITZ Pumped hydroelectric stor
Slide 25: Separation: very favorable business development
SEPARATION: VERY FAVORABLE BUSINESS DEVELOPMENT Profitability increased q/q UNIT Q1 2023 Q1 2022 +/- 2022 ORDER INTAKE BY REGION Order intake MEUR 328.2 304.4 +7.8% 1,237.9 Q1 2023 VS. Q1 2022 (%) Order backlog (as of end of period) MEUR 996.9 906.9 +9.9% 952.2 Revenue MEUR 277.3 227.6 +21.8% 1,094.
Slide 26: Agenda
AGENDA Q1 2023 5 OUTLOOK
Slide 27: Market outlook and financial guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Financial guidance 2023 confirmed MARKET OUTLOOK Project and investment activity in all business areas is expected to continue at good to satisfactory levels Economic and geopolitical challenges are closely monitored FINANCIAL GUIDANCE FOR 2023 confirmed ANDRITZ
Slide 28: Results Q1 2023
ANDRITZ GROUP RESULTS Q1 2023 APRIL 27, 2023