Andritz Ag · VIE:ANDR
Andritz — Investor Presentation (October 2024)
33 slides from Andritz's investor presentation, October 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION ANDRITZ
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
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 ~30,000 >280 >80 2023 EMPLOYEES Rest of the world LOCATIONS COUNTRIES 4% WORLDWIDE Asia Europe 30% 28% Asia (without China) South America North America Approx. 64% white-collar and Africa, Australia
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 DIGITALIZATION • Growth in revenue • Growth in profitabilty • Growth in Service share CUSTOMER SERVICE 6
Slide 7: Well on track to reach 2025 ESG goals
ESG PROGRAM WELL ON TRACK TO REACH 2025 ESG GOALS ENVIRONMENT SOCIAL GOVERNANCE Share of revenue from Reduction in the annual Procurement volume 50% sustainable solutions 30% accident frequency rate 85% covered by assessed and products y/y (>1 day of absence) y/y suppliers 2023: 45% 2023: 7% 2023: 9
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 MANAGEMENT ASSET OPTIMIZATION CYBERSECURITY TRAINING OPTIMIZATION Maximize Maximize the value of data – Maximize productivity, Proactively Boost customer expertise and plant process performance from raw data to plant insig
Slide 12: Numerous developments with customers, strong innovation focus
I N N O VAT I O N NUMEROUS DEVELOPMENTS WITH CUSTOMERS, STRONG INNOVATION FOCUS 139 MEUR in 2023 for R&D 370New patent 6,510 Patent protection rights applications in 2023 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 • Quick response time and cost-competitive, efficient life-cycle solutions • Ensuring high product quality, output and uptime • Targeting a Service share of a
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 66% of total order backlog -3% 10,822 10,569 ORDER BACKLOG BY BUSINESS AREA 10,408 10,361 Order backlog in MEUR H1 2024 VS FY 2023 9,859 9,977 9,873 10,003 9,709 9,435 IN MEUR 8,166 7,925 Environment & 7,397
Slide 20: Financial position remains solid
FINANCIALS FINANCIAL POSITION REMAINS SOLID Sufficient gross liquidity despite dividend payment in Q1 and loan repayment in Q2 Liquid funds and Net liquidity in MEUR Acquisition Schuler: Acquisition Xerium: 600 MEUR 770 MEUR 2,051 Effects on net liquidity 1,838 1,702 1,772 1,719 1,787 • Operating ca
Slide 21: Cash flow development
FINANCIALS CASH FLOW DEVELOPMENT Q2 cash flow impacted by NWC increase in Q2 compared to Q1 OPERATING CASH FLOW 3-YEARS ROLLING AVERAGE OPERATING CASH FLOW IN MEUR 604 567 538 430 359 346 296 300 285 264 268 227 207 206 186 155 154 69 84 57 43 31 29 23 2016 2017 2018 2019 2020 2021 2022 2023 -31 -48
Slide 22: 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 23: Outlook 2024
O U T L O O K & F I N A N C I A L TA R G E T S OUTLOOK 2024 Guidance confirmed: Stable revenues and profitability in FY 2024 MARKET DEVELOPMENT • No quick recovery of the markets expected • Project activity picking up in several markets GUIDANCE 2024 CONFIRMED • Satisfactory performance in H1, exist
Slide 24: Targets 2026
O U T L O O K & F I N A N C I A L TA R G E T S TARGETS 2026 2026 GROWTH Revenue before new major acquisitions > 10 BEUR CASH CONVERSION RATE CCR ~1 EBITA PROFITABILITY >9% STABLE AND INCREASING 50-60% DIVIDENDS of EPS NET INCOME MARGIN NI >6% 24
Slide 25: 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 26: 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 27: Key figures Q2 / H1 2024
H1 FINANCIALS KEY FIGURES Q2 / H1 2024 Q2 Q2 H1 H1 UNIT 2024 2023 +/- 2024 2023 +/- 2023 Order intake MEUR 1,895.1 2,292.3 -17% 3,845.4 4,712.5 -18% 8,551.9 Order backlog (as of end of period) MEUR 9,709.1 10,569.0 -8% 9,709.1 10,569.0 -8% 9,872.6 Revenue MEUR 2,100.2 2,146.4 -2% 3,986.6 4,109.0 -3%
Slide 28: Stable earnings development in H1 2024
H1 FINANCIALS STABLE EARNINGS DEVELOPMENT IN H1 2024 EBITA AND EBITA MARGIN* EBITA AND EBITA MARGIN* (REPORTED) (COMPARABLE) 0% -2% 333 333 335 329 (8.1%) (8.4%) (8.2%) (8.2%) • Stable EBITA development • Increased EBITA margin from 174 181 175 improved mix and strong project 175 (8.1%) (8.6%) (8.2%
Slide 29: Net income – cash flow bridge H1 2024
H1 FINANCIALS NET INCOME – CASH FLOW BRIDGE H1 2024 Strong development of operating and free cash flow compared to last year due to favorable NWC development and reduced tax payments IN MEUR Split of total depreciation • +90.4 MEUR depreciation (106.8)* * • +23.8 MEUR IFRS 3 amortization (-59.8)* (1
Slide 30: Pulp & Paper: order pick-up in Q2, profitability remained at high level
H1 FINANCIALS PULP & PAPER: ORDER PICK-UP IN Q2, PROFITABILITY REMAINED AT HIGH LEVEL UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 842.8 820.6 +3% 1,485.3 1,789.0 -17% 3,036.0 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 2,889.5 3,954.2 -2
Slide 31: Metals: decline in order intake, stable revenue based on existing backlog
H1 FINANCIALS METALS: DECLINE IN ORDER INTAKE, STABLE REVENUE BASED ON EXISTING BACKLOG UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 321.0 507.7 -37% 670.1 1,177.0 -43% 1,997.7 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 1,842.4 2,195.1 -
Slide 32: Hydropower: strong increase in profitability
H1 FINANCIALS HYDROPOWER: STRONG INCREASE IN PROFITABLITLY UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 284.1 657.3 -57% 781.7 1,086.6 -28% 2,020.9 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 3,473.2 3,302.3 +5% 3,473.2 3,302.3 +5% 3,398.
Slide 33: Environment & Energy: satisfied development across all areas
H1 FINANCIALS ENVIRONMENT & ENERGY: SATISFIED DEVELOPMENT ACROSS ALL AREAS UNIT Q2 2024 Q2 2023 +/- H1 2024 H1 2023 +/- 2023 REVENUE BY REGION Order intake MEUR 447.2 306.7 +46% 908.3 659.9 +38% 1,497.3 H1 2023 VS. H1 2024 (%) Order backlog (as of end of period) MEUR 1,504.0 1,117.4 +35% 1,504.0 1,1