Andritz Ag · VIE:ANDR
Andritz — Baader Investment Conference 2023
26 slides from Andritz's conference presentation, Sep 21, 2023
Slide 1: Innovative Technologies for the Planet
ANDRITZ GROUP INNOVATIVE TECHNOLOGIES FOR THE PLANET A GLOBAL PARTNER FOR KEY INDUSTRIES THAT SHAPE THE WORLD BAADER INVESTMENT CONFERENCE 2023, MUNICH – SEPTEMBER 21, 2023 DR. JOACHIM SCHÖNBECK – PRESIDENT & CEO
Slide 2: Agenda
AGENDA 1 AN D R I T Z AT A G L AN C E
Slide 3: Capital Goods to Lifecycle Services: Solutions for Sustainability
CAPITAL GOODS TO LIFECYCLE SERVICES: SOLUTIONS FOR SUSTAINABILITY WHAT WE DO: WHAT WE ACHIEVE: Empower the circular economy and drive the green transition Sustainable transformation of Processes, solutions and Sustainable manufacturing life cycle services to various transformation of industries ener
Slide 4: Key Financial Figures for the First Half 2023
KEY FINANCIAL FIGURES FOR THE FIRST HALF 2023 ORDER INTAKE REVENUE ORDER BACKLOG 4.7 billion EUR 4.1 billion EUR 10.6 billion EUR (H1 2022: 4.8 billion EUR / -1%) (H1 2022: 3.3 billion EUR / +24%) (H1 2022: 9.9 billion EUR / +7%) EBITA EBITA MARGIN NET INCOME 333 MEUR 8.1 % 227 MEUR (H1 2022: 273 ME
Slide 5: World Market Leader with Four Business Areas
WORLD MARKET LEADER WITH FOUR BUSINESS AREAS PULP & PAPER METALS HYDRO SEPARATION 47%* 22%* 17%* 14%* Pulp: #1 Forming: #1 #1-3 in sludge dewatering Paper: #3 #1-2 Processing: #1-2 & drying * Share of total Group revenue 2022 # Global market position, estimated by ANDRITZ 5 / ANDRITZ / INVESTOR PRES
Slide 6: Competence, Commitment, Passion – The Whole Team Stands for ANDRITZ Success
COMPETENCE, COMMITMENT, PASSION – THE WHOLE TEAM STANDS FOR ANDRITZ SUCCESS 30,000 employees within the ANDRITZ GROUP • Approx. 63% white-collar Asia (without China) Africa, Australia and 37% blue-collar Europe 8% (without Austria China • 4,960 employees 22% and Germany) 13% in Germany Geographical
Slide 7: Manufacturing Footprint Shifts Towards Emerging Markets
MANUFACTURING FOOTPRINT SHIFTS TOWARDS EMERGING MARKETS Over 50% of direct labour hours in emerging markets SPLIT OF DIRECT LABOUR HOURS BY REGION 81% 59% 60% 56% 54% 53% 47% 49% 51% 44% 46% 41% 40% 19% 2005 2010 2015 2017 2019 2021 2022 Developed World Emerging Markets 7 / ANDRITZ / INVESTOR PRESEN
Slide 8: Acquisition of Dan-Web Strengthens Sustainable Pulp Business
ACQUISITION OF DAN-WEB STRENGTHENS SUSTAINABLE PULP BUSINESS Dan-Web, based in Galten, Denmark, is a leading supplier of a wide range of technologies for the production of airlaid nonwovens. Technology acquisition to enter the fast growing market of dry moulded pulp packaging and parts Employees: ap
Slide 9: Our Strategy: Long-Term Profitable Growth
OUR STRATEGY: LONG-TERM PROFITABLE GROWTH DECARBONIZATION LONG-TERM PROFITABLE GROWTH DIGITALIZATION • Grow revenue • Grow profitability • Grow service share CUSTOMER SERVICE 9 / ANDRITZ / INVESTOR PRESENTATION / SEPTEMBER 2023 / © ANDRITZ GROUP
Slide 10: "We Care" – Our ESG Program
„WE CARE“ – OUR ESG PROGRAM Sustainability is an integrated part of our corporate policy – we are committed to the SBTi to further reduce our greenhouse gas emissions by 2030 OUR FOCUS E – reduce our CO2 footprint, save resources and develop sustainable technologies S – ensure a safe and viable futu
Slide 11: Well on Track to Reach Our ESG Goals by the End of 2025
WELL ON TRACK TO REACH OUR ESG GOALS BY THE END OF 2025 ENVIRONMENT SOCIAL GOVERNANCE 50% Share of revenue from sustainable solutions and 30% Reduction in the annual accident frequency rate 85% Procurement volume covered by audited suppliers products (>1 day of absence) 45% * compared to the precedi
Slide 12: Strong Competitive Position in Long Term Growing Markets
STRONG COMPETITIVE POSITION IN LONG TERM GROWING MARKETS PULP & PAPER: HYDRO: • Growing pulp demand for cellulosic fibers for Hydropower as largest source of renewable sustainable packaging, hygiene, textiles, energy to profit from global megatrends: and plastic replacements • energy transition • Ne
Slide 13: E-Mobility: Metals Forming Solutions for Battery Manufacturing
E-MOBILITY: METALS FORMING SOLUTIONS FOR BATTERY MANUFACTURING Process steps for production of Li-Ion battery cells Combination of Sovema and Schuler Battery manufacturing Solution know-how provider for giga factories Process steps of lithium-ion battery cells Electrode Manufacturing - Cathode Cell
Slide 14: Agenda
AGENDA 2 F I N AN C I AL S
Slide 15: Development of Book-to-Bill Ratio as Key Driver for Sustainable Growth
DEVELOPMENT OF BOOK-TO-BILL RATIO AS KEY DRIVER FOR SUSTAINABLE GROWTH Despite 2020 (Covid), book-to-bill ratio has been above 1 ANDRITZ GROUP – BOOK-TO-BILL RATIO 2018 - H1 2023 PULP & PAPER METALS 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.0 0.9 0.9 0.8 1.2 1.2 1.1 1.1 1.1 0.9 2018 2019 2020 2021 2022 H1 2
Slide 16: Stable Service Business Is Growing Faster Than Capital Business
STABLE SERVICE BUSINESS IS GROWING FASTER THAN CAPITAL BUSINESS Supports profitability and reduces volatility GROUP REVENUE H1 2018 - H1 2023 (MEUR) GROUP REVENUE 2018 - 2022 (MEUR) CAGR Service: +11% CAGR Service: +9% CAGR Capital: +7% CAGR Capital: +4% 5,000 10,000 4,500 4,109 4,000 8,000 7,543 3,
Slide 17: Stable and Recurring Service Business Supports Profitability
STABLE AND RECURRING SERVICE BUSINESS SUPPORTS PROFITABILITY Service revenue in 2022 and share of total revenue PULP & PAPER METALS ANDRITZ GROUP 25% (25%) 1,535 MEUR 44% 409 MEUR (2021: (2021: 56% 1,292 MEUR) (44%) 348 MEUR) (56%) 75% (75%) 40% Service revenue (40%) 2,999 MEUR (2021: 2,608 MEUR) HY
Slide 18: EBITA Margin Reported the Third Consecutive Year Above the Group Target
EBITA MARGIN REPORTED THE THIRD CONSECUTIVE YEAR ABOVE THE GROUP TARGET Despite economic and geopolitical challenges (Covid-19; Russian War) EBITA REPORTED (IN MEUR) EBITA MARGIN REPORTED (IN %) CAGR: +13% 8.6 Group 8.5 649 8.1 Target: >8% 547 6.5 5.8 394 392 5.1 343 333 2018 2019 2020 2021 2022 H1
Slide 19: Cash Flow Development
CASH FLOW DEVELOPMENT Intensive Working Capital Management and reasonable capex in fixed assets support Free cash flow OPERATING AND FREE CASHFLOW OF THE ANDRITZ GROUP (IN MEUR) 822 711 665 530 526 462 367 370 330 247 7y avg. 264 Free Cash Flow 308 MEUR 130 8 -129 2016 2017 2018 2019 2020 2021 2022
Slide 20: Financial Position
FINANCIAL POSITION Gross liquidity of ~1.6 billion euros, net liquidity at ~610 million euros Note: Net liquidity includes financial investments plus Schuldscheindarlehen but excludes unutilised credit lines of ~124 MEUR (as of H1 2023). Since January 1, 2019, lease liabilities are excluded from the
Slide 21: ANDRITZ Pursues a Dividend Policy Towards Continuity
ANDRITZ PURSUES A DIVIDEND POLICY TOWARDS CONTINUITY Strong EPS growth since 2019 5 90 4.5 78.1 4.14 80 70.5 4 70 Goal to distribute an average 3.5 60.1 3.28 of 50%-60% of EPS 55.8 60 49.0 51.9 50.3 50.7 3 2.69 48.1 2.60 2.58 50 Consistent dividend growth 2.5 2.20 39.4 2.04 2.08 2.10 40 intended 2 1
Slide 22: Agenda
AGENDA 3 OUTLOOK
Slide 23: Group Roadmap 2022-2024 Well on Track
GROUP ROADMAP 2022-2024 WELL ON TRACK GROUP TARGETS 2022-2024 STATUS H1 2023 Group business volume well above 7 billion EUR, Order intake: 4.7 billion EUR including M&A towards 8 billion EUR Revenue: 4.1 billion EUR EBITA margin at solid 8% 8.1% Net income to increase to >5% 5.4% Continue M&A strate
Slide 24: Market Outlook and Financial Guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Financial guidance 2023 confirmed MARKET OUTLOOK • General investment activity is declining (high interest rate environment) • Demand for green products and service business remain stable FINANCIAL GUIDANCE FOR 2023 • ANDRITZ expects to continue on its profitabl
Slide 25: Thank You!
INDRITZ G ENGINEERED SUCCESS
Slide 26: Legal Disclaimer
LEGAL DISCLAIMER © ANDRITZ AG 2023 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