Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (November 2024)
36 slides from Andritz's investor presentation, November 2024
Slide 1: Investor Presentation
ANDRITZ GROUP INVESTOR PRESENTATION
Slide 2: No challenge is too big – a global pioneer in large-scale green-tech solutions
A N D R I T Z AT A G L A N C E NO CHALLENGE IS TOO BIG – A GLOBAL PIONEER IN LARGE-SCALE GREEN-TECH SOLUTIONS WHAT WE DO Developing large-scale, state-of-the-art engineering and service solutions Elevating customer operations with state-of-the-art technologies Empowering our customers to drive the g
Slide 3: A truly global player, servicing customers worldwide
A N D R I T Z AT A G L A N C E A TRULY GLOBAL PLAYER, SERVICING CUSTOMERS WORLDWIDE REVENUE BY REGION Asia (without China) 2023 Approx. 64% white-collar and Africa, Australia Rest of the world 36% blue-collar 8% Rest of 4% China Asia Europe 23% Europe >33% are working in 13% 30% 28% Geographical eng
Slide 4: Diversified end markets, high exposure to service and future technologies
A N D R I T Z AT A G L A N C E DIVERSIFIED END MARKETS, HIGH EXPOSURE TO SERVICE AND FUTURE TECHNOLOGIES ANDRITZ GROUP 2023 Order Intake 8,552 MEUR Backlog 9,873 MEUR Revenue 8,660 MEUR EBITA (reported) 742 MEUR PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 46%* 21% 18% 15% Revenue 3,987 MEUR
Slide 5: Solid underlying market growth, structural growth drivers & growth opportunities
A N D R I T Z AT A G L A N C E SOLID UNDERLYING MARKET GROWTH, STRUCTURAL GROWTH DRIVERS & GROWTH OPPORTUNITIES ENVIRONMENT PULP & PAPER METALS HYDROPOWER & ENERGY Growth ambition CAGR >5% CAGR >5% CAGR >5% CAGR ~10% Underlying mid-term 2-3% 2-3% 2-3% 4-5% market growth Global decarbonization trend
Slide 6: Long-term profitable growth
C O R P O R AT E S T R AT E G Y LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH • Growth in revenue DIGITALIZATION • Growth in profitabilty • Growth in service share CUSTOMER SERVICE 6
Slide 7: Well on track to reach our ESG goals
WELL ON TRACK TO REACH OUR ESG GOALS STATUS Q1-Q3 2024 ENVIRONMENT SOCIAL GOVERNANCE Share of revenue from Reduction in the annual Procurement volume 43% sustainable solutions -3% accident frequency rate 89% covered by assessed and products** (>1 day of absence) y/y suppliers 2025 target: 50% yoy ta
Slide 8: A key enabler of the green transition
D E C A R B O N I Z AT I O N A KEY ENABLER OF THE GREEN TRANSITION • Developing economically feasible key technologies for the green transition • Providing full life cycle services from project development to operation and maintenance • Offering key solutions for: • Carbon capture • Green hydrogen p
Slide 9: Commercializing innovative inhouse developments
GREEN PRODUCTS COMMERCIALIZING INNOVATIVE INHOUSE DEVELOPMENTS QUOTATION CONSTRUCTION OPERATION Green Hydrogen Alkaline PEM Carbon Capture Amin Membrane Textile recycling Mechanical Chemical Battery Lab and pilot lines Giga-factories Bio-Methanol Kraftanol purification Synthesis SulfoLoop 9
Slide 10: Large addressable markets for new Environment & Energy segment
GREEN PRODUCTS LARGE ADDRESSABLE MARKETS FOR NEW ENVIRONMENT & ENERGY SEGMENT SEPARATION FEED & BIOFUEL PUMPS CLEAN AIR TECHNOLOGIES GREEN HYDROGEN ~6 BEUR* ~2 BEUR* ~5 BEUR* ~2 BEUR* ~3 BEUR* Mechanical & thermal separation Processing solutions and Premium pumping technology for Emission reduction
Slide 11: Supporting customers throughout plant life cycle
DIGITALIZATION SUPPORTING CUSTOMERS THROUGHOUT PLANT LIFE CYCLE PROCESS PLANT ASSET CYBER OPTIMIZATION MANAGEMENT TRAINING OPTIMIZATION SECURITY Maximize Maximize the value Maximize productivity, Proactively Boost customer plant process of data – from raw data efficiency and manage digital expertise
Slide 12: Numerous developments with customers, strong innovation focus
I N N O V AT I O N NUMEROUS DEVELOPMENTS WITH CUSTOMERS, STRONG INNOVATION FOCUS 139 MEUR 370 6,510 for R&D in 2023 new patent patent applications in 2023 protection rights 12
Slide 13: Increasing focus on life-cycle solutions and services
S E R V I C E S T R AT E G Y INCREASING FOCUS ON LIFE-CYCLE SOLUTIONS AND SERVICES • Servicing our customers at every step of the value chain Retrofits & Upgrades Capital • Quick response time and cost-competitive, efficient Systems life-cycle solutions • Ensuring high product quality, output and up
Slide 14: Strong service business continues to support profitability
S E R V I C E S T R AT E G Y STRONG SERVICE BUSINESS CONTINUES TO SUPPORT PROFITABILITY PULP & PAPER METALS ANDRITZ GROUP 25% (25%)* 1,683 MEUR 42% 456 MEUR (FY 22: (45%)* (FY 22: 1,536 MEUR) 409 MEUR) 58% (55%)* 38% 75% (75%)* Service revenue (39%)* 3,255 MEUR (FY 22: 2,938 MEUR) HYDROPOWER ENVIRON
Slide 15: Proven value creation through strategic acquisitions
M & A S T R AT E G Y PROVEN VALUE CREATION THROUGH STRATEGIC ACQUISITIONS Clear acquisition strategy • Complimentary business in our industries • Retain the management • No acquisitions of competitors 78 Successful acquisitions since 2002 2.1 BEUR Invested in acquisitions 2002-2023 3.6 BEUR Total ea
Slide 16: We expand our portfolio in all business areas
M & A S T R AT E G Y WE EXPAND OUR PORTFOLIO IN ALL BUSINESS AREAS PULP & PAPER METALS HYDROPOWER ENVIRONMENT & ENERGY 2002 ABB Drying 2013 MeWa 2002 SELAS SAS Furnace Div. 2006 VA TECH HYDRO 2002 3SYS 2003 IDEAS Simulation 2016 SHW CastingTech 2004 Kaiser 2007 Tigép 2003 Fiedler 2003 Acutest Oy 201
Slide 17: Stable development in service and base business
FINANCIALS STABLE DEVELOPMENT IN SERVICE AND BASE BUSINESS Order intake in MEUR 9,263 8,552 7,880 1,767 Mid-size capital order intake stable 924 7,282 and growing with an average growth 1,213 rate of 3% 6,646 1,394 6,108 6,018 655 5,569 5,580 Service order intake has consistently 635 832 287 117 4,1
Slide 18: Service continuously growing with higher growth rates in recent years
FINANCIALS SERVICE CONTINUOUSLY GROWING WITH HIGHER GROWTH RATES IN RECENT YEARS Revenue in MEUR 3,328 CAGR +8% 3,000 2,666 2,608 2,443 2,155 2,018 1,931 2016 2017 2018 2019 2020 2021 2022 2023 18
Slide 19: Order backlog still on satisfactory level
FINANCIALS ORDER BACKLOG STILL ON SATISFACTORY LEVEL Pulp & Paper and Hydropower account for 63% of total order backlog 10,822 10,569 -3% ORDER BACKLOG BY BUSINESS AREA 10,408 10,361 Order backlog in MEUR Q1-Q3 2024 VS. FY 2023 (%) 9,859 9,977 9,873 10,003 9,709 9,435 9,383 IN MEUR 8,166 Environment
Slide 20: Financial position remains solid
FINANCIALS FINANCIAL POSITION REMAINS SOLID Liquid funds and Net liquidity in MEUR Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR 2,051 Effects on net liquidity 1,838 1,787 1,702 1,772 1,719 • Operating cash flow 1,610 +404 MEUR 1,517 1,507 1,449 1,347 • Dividend payment 1,280 -248 MEUR
Slide 21: Cash flow development
FINANCIALS CASH FLOW DEVELOPMENT OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW 346 604 300 567 285 538 in MEUR 268 in MEUR • Typical working 227 430 capital fluctuations 206 driven by capital 186 359 business 155 154 296 264 207 • Stable cash flow 84 96 generation reflected 57 69 i
Slide 22: ROIC significantly above WACC
ROIC SIGNIFICANTLY ABOVE WACC Development ROIC vs WACC 25.5% 22.6% 22.9% 20.0% 17.0% 17.2% 16.9% 13.0% 12.3% 10.4% 10.1% 9.4% 9.0% 8.0% 8.6% 8.6% 8.2% 8.3% 6.9% 7.1% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 2024* ROIC WACC Note: Calculation changed from ROCE to ROIC; ROIC as per definition
Slide 23: Strong dividend growth
FINANCIALS STRONG DIVIDEND GROWTH Stable and increasing dividends with average pay-out ratio above 50% DIVIDEND PER SHARE (EUR) 2.5 2.1 1.5 1.6 1.6 1.7 1.4 1.0 0.5 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Proposal to the Annual General Meeting PAYOUT RATIO (%) 70.5 55.8 60.1 average payout rat
Slide 24: Outlook 2024
OUTLOOK 2024 Revenue guidance slightly adjusted Market development Project activity is picking up but no quick recovery in markets expected Growing demand for green technologies Growth in Service business Large existing order backlog Revenue guidance 2024 slightly adjusted Slightly decreasing revenu
Slide 25: Group targets 2024-2026
GROUP TARGETS 2024-2026 • Revenue growth to >10bn revenues • EBITA margin >9% • Net income margin >6% • Continue successful M&A strategy with focus on Service and digitalization • Overachieve ESG targets 25
Slide 26: Group revenue to exceed 10 BEUR by 2026, with continued growth in all business areas
O U T L O O K & F I N A N C I A L TA R G E T S GROUP REVENUE TO EXCEED 10 BEUR BY 2026, WITH CONTINUED GROWTH IN ALL BUSINESS AREAS Revenue in MEUR Growth Ambition: PULP & PAPER CAGR > 5% METALS 3,987 3,431 3,238 Growth Ambition: 2,953 2,775 CAGR > 5% 1,994 1,933 1,936 2,127 1,840 1,718 1,598 1,644
Slide 27: Raised EBITA targets for all business areas except Metals – new group target >9%
O U T L O O K & F I N A N C I A L TA R G E T S RAISED EBITA TARGETS FOR ALL BUSINESS AREAS EXCEPT METALS – NEW GROUP TARGET: >9% EBITA-margin in % PULP & PAPER METALS 11.4 10.9 Target (rev) 10.5 10.3 9.9 9.7 9.6 11-13% 9.4 9.1 (previous 10-11%) 7.2 6.0 Target 4.1 5.0 6-8% 3.9 2.8 1.7 New 2015 2016 2
Slide 28: Key figures Q3 / Q1-Q3 2024
Q3 FINANCIALS KEY FIGURES Q3 / Q1-Q3 2024 Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 1,903.1 1,803.5 +6% 5,748.5 6,516.0 -12% 8,551.9 Order backlog (as of end of period) MEUR 9,382.5 10,361.2 -9% 9,382.5 10,361.2 -9% 9,872.6 Revenue MEUR 2,041.5 2,104.1 -3% 6,028.1 6,2
Slide 29: Stable earnings development
Q3 FINANCIALS STABLE EARNINGS DEVELOPMENT EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) 0% 0% 509 507 513 510 (8.2%) (8.4%) (8.3%) (8.5%) • Stable reported and comparable 176 174 178 182 EBITA development in Q1-Q3 2024 (8.4%) (8.5%) (8.5%) (8.9%) • Stable EBITA margins 174
Slide 30: Net income – cash flow bridge Q1-Q3 2024
Q3 FINANCIALS NET INCOME – CASH FLOW BRIDGE Q1-Q3 2024 in MEUR (160.1)* (-39.1)* Split of total depreciation • +127.8 MEUR depreciation (18.0)* • +37.4 MEUR IFRS 3 amortization (124.8)* (-369.8)* (-16.0)* (74.9)* (-149.2)* (346.1)* CF from changes in NWC (-157.7)* • -95.9 ∆ inventories (-82.8)* • -2
Slide 31: Pulp & Paper
Q3 FINANCIALS PULP & PAPER Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 482.9 598.4 -19% 1,968.2 2,387.4 -18% 3,036.0 REVENUE BY REGION Order backlog (as of end of period) MEUR 2,480.4 3,623.9 -32% 2,480.4 3,623.9 -32% 3,135.8 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 8
Slide 32: Metals
Q3 FINANCIALS METALS Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 634.1 441.3 44% 1,304.2 1,618.3 -19% 1,997.7 REVENUE BY REGION Order backlog (as of end of period) MEUR 1,973.7 2,201.1 -10% 1,973.7 2,201.1 -10% 2,057.1 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 456.2 45
Slide 33: Hydropower
Q3 FINANCIALS HYDROPOWER Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 447.2 323.8 38% 1,228.9 1,410.4 -13% 2,020.9 REVENUE BY REGION Order backlog (as of end of period) MEUR 3,466.8 3,288.5 5% 3,466.8 3,288.5 5% 3,398.8 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue MEUR 368.8 36
Slide 34: Environment & Energy
Q3 FINANCIALS ENVIRONMENT & ENERGY Q3 Q3 Q1-Q3 Q1-Q3 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 338.9 440.0 -23% 1,247.2 1,099.9 13% 1,497.3 REVENUE BY REGION Order backlog (as of end of period) MEUR 1,461.6 1,247.7 17% 1,461.6 1,247.7 17% 1,280.9 Q1-Q3 2024 VS. Q1-Q3 2023 (%) Revenue M
Slide 35: Legal disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2024 This presentation contains forward-looking statements, which include statements about future events, future financial performanc e, plans, strategies, expectations, prospects, regulatory changes, and changes in customer investment activity. Such statements may be i
Slide 36: Creating growth that matters
CREATING GROWTH THAT MATTERS