Andritz Ag · VIE:ANDR
Andritz — Austrian Day in Warsaw 2023
32 slides from Andritz's conference presentation, Nov 30, 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 AUSTRIAN DAY IN WARSAW, - NOVEMBER 30, 2023 NORBERT NETTESHEIM – CFO
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: Strong growth of revenue and earnings, Q3 2023 KPIs
STRONG GROWTH OF REVENUE AND EARNINGS, BACKLOG REMAINS ELEVATED DESPITE WEAK LARGE ORDER BOOKINGS IN Q3 Major financial KPIs Q3 2023 ORDER INTAKE REVENUE ORDER BACKLOG 1.8 billion EUR 2.1 billion EUR 10.4 billion EUR (Q3 2022: 2.7 billion EUR / -33%) (Q3 2022: 1.9 billion EUR / +11%) (Q3 2022: 10.8
Slide 5: Year-to-date book-to-bill ratio above 1, Q1-Q3 2023 KPIs
YEAR-TO-DATE BOOK-TO-BILL-RATIO ABOVE 1 WITH STRONG CONVERSION OF BACKLOG INTO REVENUE AND EARNINGS Major financial KPIs Q1-Q3 2023 ORDER INTAKE REVENUE ORDER BACKLOG 6.5 billion EUR 6.2 billion EUR 10.4 billion EUR (Q1-Q3 2022: 7.5 billion EUR / -13%) (Q1-Q3 2022: 5.2 billion EUR / +19%) (Q1-Q3 202
Slide 6: 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 Service revenue: 44%** Service revenue: 25%** Service revenue: 41%** Service revenue: 46%** * Share of total G
Slide 7: 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 • New investments, moder
Slide 8: Competence, Commitment, Passion – The Whole Team Stands for ANDRITZ Success
COMPETENCE, COMMITMENT, PASSION – THE WHOLE TEAM STANDS FOR ANDRITZ SUCCESS REVENUE BY REGION Around 30,000 Q1-Q3 2023 Others 3% employees within the ANDRITZ GROUP Europe Asia 28% 29% • Approx. 62% white-collar Asia (without China) Africa, Australia South America North America and 38% blue-collar 15
Slide 9: Our Strategy: Long-Term Profitable Growth
OUR STRATEGY: LONG-TERM PROFITABLE GROWTH DECARBONIZATION • Grow revenue DIGITALIZATION • Grow profitability • Grow service share CUSTOMER SERVICE 9 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2023 / © ANDRITZ GROUP
Slide 10: Comprehensive Offerings to Realize Our Strategic Targets
COMPREHENSIVE OFFERINGS TO REALIZE OUR STRATEGIC TARGETS DECARBONIZATION DIGITALIZATION CUSTOMER SERVICE Renewable E-Mobility energy Asset Cyber On-site Parts Performance Security services services Recycling Carbon capture Autonomous Remote Performance Operation services services Green hydrogen 10 /
Slide 11: Renewable Energy: Intelligent 24/7 Green Energy Supply
RENEWABLE ENERGY INTELLIGENT 24/7 GREEN ENERGY SUPPLY Pumped storage power plant: • Combines electrical energy production from Electricity from solar and wind power is used to pump water up into the upper basin; at peak times, the water is drained solar, wind, and pumped storage to produce hydroelec
Slide 12: E-Mobility: Target to Be a Solution Provider for Giga Factories
E-MOBILITY: TARGET TO BE A SOLUTION PROVIDER FOR GIGA FACTORIES Pilot line for all Solid-State-Batteries (ASSB) - Joint project by Schuler and Sovema Sovema Schuler Sovema 12 / ANDRITZ / INVESTOR PRESENTATION / NOVEMBER 2023 / © ANDRITZ GROUP
Slide 13: Circular Economy: Textile Recycling Challenge
CIRCULAR ECONOMY: WE EMPOWER THE TACKLING OF THE 92 MILLION TONS TEXTILE RECYCLING CHALLENGE • Leader in machinery for mechanical recycling of textiles since 1926 • Customized processes for textile fiber preparation and recycling of diverse textile waste types • Global network of pilot plants and te
Slide 14: Decarbonization: Capturing Carbon Across Industries
DECARBONIZATION: CAPTURING CARBON ACROSS INDUSTRIES Full-scale turnkey solutions • Removal efficiency up to 98% • Produces food grade CO2 quality • Applicable for all sources of CO2 emission © Rohrdorfer Germany's first CO2 capture plant at Rohrdorfer Cement 14 / ANDRITZ / INVESTOR PRESENTATION / NO
Slide 15: Target to Become a Leading Solution Provider for Green Hydrogen Production
TARGET TO BECOME A LEADING SOLUTION PROVIDER FOR GREEN HYDROGEN PRODUCTION On track and determined: Salzgitter orders one of Europe's largest green hydrogen plants • EPC contract for a 100 MW green hydrogen plant from Salzgitter, Germany • Pressurized alkaline electrolyzer technology from HydrogenPr
Slide 16: "We Care" – Our ESG Program
„WE CARE“ – OUR ESG PROGRAM Sustainability is an integrated part of our corporate strategy – 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 fu
Slide 17: 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 18: Dedert International Acquisition
DEDERT INTERNATIONAL ACQUISITION Strengthening our position with dryers and evaporators for the starch, proteins and biofuel industry • A leading engineering company offering complementary technologies in growing markets with a good regional fit • Combined portfolio enables complete solutions from d
Slide 19: NAF Acquisition
NAF ACQUISITION Strengthening our automation solutions with a complementary key player in the valve segment of the pulp and paper industry • NAF manufactures manual, automated, and control valves for safe process control in Pulp & Paper mills • Development of integrated process and automation soluti
Slide 20: Agenda: Financials
AGENDA 2 F I N AN C I AL S
Slide 21: Development of Book-to-Bill Ratio as Key Driver for Sustainable Growth
DEVELOPMENT OF BOOK-TO-BILL RATIO AS KEY DRIVER FOR SUSTAINABLE GROWTH Except for 2020 (Covid), book-to-bill ratio has been around 1 ANDRITZ GROUP – BOOK-TO-BILL RATIO 2018 – Q1-Q3 2023 PULP & PAPER METALS 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.0 0.9 0.8 0.8 1.2 1.2 1.1 1.1 1.0 2018 2019 2020 2021 2022 Q
Slide 22: 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 Q1-Q3 2018 - Q1-Q3 2023 (MEUR) GROUP REVENUE 2018 - 2022 (MEUR) CAGR Service: +9% CAGR Capital: +4% CAGR Service: +11% CAGR Capital: +6% 10,000 6,213 6,000 5,208 8,000 7,543 4,
Slide 23: Stable Growth of Service Business Continues to Support Profitability
STABLE GROWTH OF SERVICE BUSINESS CONTINUES TO SUPPORT PROFITABILITY Q1-Q3 2023: Service revenue and share of total revenue PULP & PAPER METALS ANDRITZ GROUP 24% (25%) 1,233 MEUR 42% 330 MEUR (Q1-Q3 22: (46%) (Q1-Q3 22: 1,101 MEUR) 286 MEUR) 58% (64%) 39% 76% (75%) Service revenue (40%) 2,424 MEUR (
Slide 24: 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 8.2 649 Target: >8% 547 509 6.5 5.8 394 392 5.1 343 2018 2019 2020 2021 2022 Q1-
Slide 25: Cash Flow Development
CASH FLOW DEVELOPMENT Cash Flow volatility is driven by working capital fluctuations during regular "order to cash cycle“ in capital business – average Free Cash Flow 2016-2022 at 308 MEUR 822 IN MEUR 711 665 530 526 462 367 370 330 247 last 7y avg. 264 Free Cash Flow 308 MEUR 130 75 8 -83 -129 2016
Slide 26: Liquidity Remains Strong
LIQUIDITY REMAINS STRONG Net Liquidity increased in Q3 2023 by 125 MEUR with liquid funds stable at ~1.6 billion EUR Optimization of balance sheet by 100 MEUR Schuldscheindarlehen repayment in Q3 2023 Note: Since January 1, 2019, lease liabilities are excluded from the calculation of net liqudity; 2
Slide 27: 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 Target 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
Slide 28: Agenda: Outlook
AGENDA 3 OUTLOOK
Slide 29: Group Roadmap 2022-2024 Well on Track
GROUP ROADMAP 2022-2024 WELL ON TRACK GROUP TARGETS 2022-2024 STATUS Q1-Q3 2023 Group business volume well above 7 billion EUR, Order intake: 6.5 billion EUR including M&A towards 8 billion EUR Revenue: 6.2 billion EUR EBITA margin at solid 8% 8.2% Net income to increase to >5% 5.6% Continue M&A str
Slide 30: Market Outlook and Financial Guidance
MARKET OUTLOOK AND FINANCIAL GUIDANCE Market outlook not changed and financial guidance 2023 confirmed MARKET OUTLOOK • High interest rates and slow economy will impact project and investment decisions. • Demand for green products and service remains stable. • Economic and geopolitical challenges ar
Slide 31: Thank You!
INDRITZ G ENGINEERED SUCCESS
Slide 32: 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