Slide 1: Results for 2018
RESULTS FOR 2018 ANDRITZ GROUP MARCH 6, 2019
Slide 2: Chapter Overview
CHAPTER OVERVIEW 01 FY 2018 AT A GLANCE 02 PERFORMANCE FY 2018 AND MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 2 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2018 / MARCH 6, 2019 / © ANDRITZ GROUP
Slide 3: FY 2018 at a Glance
FY 2018 AT A GLANCE Mixed business development. • Favorable development of Group order intake, reaching a record level of 6.6 billion euros. • Sales slightly up to 6.0 billion euros. • EBITA decreased to 394 million euros (margin: 6.5%) due to provisions for restructuring and lack of extraordinary i
Slide 4: Chapter Overview
CHAPTER OVERVIEW 01 FY 2018 AT A GLANCE 02 PERFORMANCE FY 2018 AND MARKET UPDATE 03 UPDATE OF BUSINESS AREAS 04 4 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2018 / MARCH 6, 2019 / © ANDRITZ GROUP
Slide 5: Record Order Intake
RECORD ORDER INTAKE Increase in all business areas. Thereof 147 MEUR from first-time ORDER INTAKE (IN MEUR) consolidated companies (mainly ORDER INTAKE BY BUSINESS AREA (IN MEUR) Xerium) +19%, thereof 2018 2017 +/- 16%points organic Hydro 1,446 1,317 +10% 6,646 Pulp & Paper 2,572 2,033 +26% 5,580 Me
Slide 6: Strong Order Intake in Q4 2018
STRONG ORDER INTAKE IN Q4 2018 Very high Group order intake in Q4 2018 due to Pulp & Paper and Metals ORDER INTAKE BY REGION MEUR MEUR (IN %) +30% 2,500 2,250 7,000 1,908 6,000 2,000 1,737 1,431 1,470 1,532 1,560 1,467 1,533 1,469 5,000 Emerging 5% 1,500 1,149 1,188 1,247 1,319 1,211 1,341 4,000 mar
Slide 7: Slight Rise of Sales
SLIGHT RISE OF SALES Flat sales excluding acquisitions. SALES (IN MEUR) +2% Thereof 149 MEUR from first-time 5,889 6,031 consolidated companies (mainly Xerium) SALES BY BUSINESS AREA (IN MEUR) 2018 2017 +/- Hydro 1,518 1,583 -4% Pulp & Paper 2,233 2,060 +8% Metals 1,635 1,644 -1% 2017 2018 Separatio
Slide 8: Capital Sales
CAPITAL SALES Quarterly development of capital sales (in MEUR). -2% 1,400 4,600 1,230 1,240 1,200 1,140 1,114 1,152 1,129 1,011 1,010 4,400 1,001 958 1,000 922 911 895 863 926 848 4,200 800 4,000 600 3,800 400 200 3,600 0 3,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17
Slide 9: Further Increase of Service Business
FURTHER INCREASE OF SERVICE BUSINESS Thereof ~100 MEUR from Quarterly development of service sales (in MEUR). Xerium +18% 800 2,200 702 700 558 560 594 600 514 511 2,000 461 470 465 468 465 482 469 500 403 437 428 400 1,800 300 200 1,600 100 0 1,400 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1
Slide 10: Rising Order Backlog Since End of 2017
RISING ORDER BACKLOG SINCE END OF 2017 Order backlog of almost 7.1 billion EUR provides good basis for business development in 2019 ORDER BACKLOG (AS OF END OF PERIOD; IN MEUR) +11% ORDER BACKLOG 2018 BY BUSINESS AREA 7,786 (IN %) 7,349 7,324 7,148 7,076 7,044 6,892 6,789 6,974 6,849 6,651 6,841 6,8
Slide 11: Practically Stable Earnings Excluding Extraordinary Effects
PRACTICALLY STABLE EARNINGS EXCLUDING EXTRAORDINARY EFFECTS Margins excluding extraordinary items practically unchanged EBITA AND EBITA MARGIN ADJUSTED BY EBITA AND EBITA MARGIN REPORTED (IN MEUR) EXTRAORDINARY ITEMS (IN MEUR) -1% 444.0 -11% ~+25 MEUR 415.0 420.4 -21 MEUR 394.3 Practically stable pr
Slide 12: EBITDA – Net Income Bridge
EBITDA – NET INCOME BRIDGE Impairment of goodwill in the amount of 16 MEUR. Thereof ~12 MEUR for • Pulp & Paper (-9 MEUR) • Lower interest income due Xerium • Metals (-7 MEUR) to substantially lower interest rates in Brazil Metals • Increase in interest Tax rate 27.8% expenses due to issuance of Sch
Slide 13: Net Working Capital Bridge
NET WORKING CAPITAL BRIDGE in MEUR and in % of sales 2.7% For 2019, clear focus on payment terms! -2.1% 13 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2018 / MARCH 6, 2019 / © ANDRITZ GROUP
Slide 14: Cash Flow from Operating Activities
CASH FLOW FROM OPERATING ACTIVITIES Project related changes in receivables/payables negatively impact cash flow Release of provisions in Hydro and Pulp & Paper Change in receivables (-118 MEUR) Change in payables (-106 MEUR) Change in inventories (-23 MEUR) Change in contract liabilities from sales
Slide 15: Key Figures FY 2018 at a Glance
KEY FIGURES FY 2018 AT A GLANCE UNIT 2018 2017 +/- Order intake MEUR 6,646.2 5,579.5 +19.1% Order backlog (as of end of period) MEUR 7,084.3 6,383.0 +11.0% Sales MEUR 6,031.5 5,889.1 +2.4% EBITA (adj. by extraordinary items) MEUR 415.0 420.4 -1.3% Increase mainly attibutable to the acquisition of a
Slide 16: Proposed Dividend of 1.55 EUR/Share
PROPOSED DIVIDEND OF 1.55 EUR/SHARE Increase of payout ratio to 70.5%; dividend yield of ~3.5% DIVIDEND PER SHARE (EUR) 1.50 1.55 1.55 * 1.35 1.20 1.10 1.00 0.85 0.50 0.55 0.50 0.50 0.38 0.18 0.25 0.11 0.13 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 * Propos
Slide 17: Chapter Overview
CHAPTER OVERVIEW 01 FY 2018 AT A GLANCE 02 03 UPDATE OF BUSINESS AREAS 04 17 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2018 / MARCH 6, 2019 / © ANDRITZ GROUP
Slide 18: Hydro (1): Unchanged Moderate Market Environment
HYDRO (1): UNCHANGED MODERATE MARKET ENVIRONMENT Selective award of individual projects, particularly in emerging markets. • New hydropower plants Some new, larger projects are currently in the planning phase, especially in Southeast Asia and Africa; selective award is only expected in the medium to
Slide 19: Hydro (2): Strong Increase in Order Intake from Very Low Level
HYDRO (2): STRONG INCREASE IN ORDER INTAKE FROM VERY LOW LEVEL Decrease in sales and earnings; solid profitability. UNIT 2018 2017 +/- Order intake above the low reference figure for the Order intake MEUR 1,445.8 1,317.2 +9.8% previous year. Order backlog (as of end of period) MEUR 2,667.9 2,921.8 -
Slide 20: Pulp & Paper (1): Continued Good Market Environment
PULP & PAPER (1): CONTINUED GOOD MARKET ENVIRONMENT ANDRITZ to supply major pulp production technologies • Pulp and key process equipment for ARAUCO’s MAPA project in Chile. Good project activity, particularly for modernization of existing pulp mills. • Paper Satisfactory market development for tiss
Slide 21: Pulp & Paper (2): Favorable Business Development
PULP & PAPER (2): FAVORABLE BUSINESS DEVELOPMENT Earnings and profitability at record levels. UNIT 2018 2017 +/- Order intake significantly Order intake MEUR 2,571.9 2,033.4 +26.5% up, both for the capital and service business. Order backlog (as of end of period) MEUR 2,421.1 1,787.0 +35.5% Increase
Slide 22: Metals (1): Cautious Project and Investment Activity
METALS (1): CAUTIOUS PROJECT AND INVESTMENT ACTIVITY Good market environment in Metals Processing; • Metals Forming Project delays in the automotive industry and due to the general economic development in China. • Metals Processing Overall good global economic environment and the related high capaci
Slide 23: Metals (2): Unsatisfactory Business Development
METALS (2): UNSATISFACTORY BUSINESS DEVELOPMENT Earnings and profitability negative impacted by provisions for capacity adjustment measures. UNIT 2018 2017 +/- Significant increase in order Order intake MEUR 1,931.8 1,606.5 +20.2% intake mainly due to Metals Processing; order intake in Order backlog
Slide 24: Separation (1): Good Project and Investment Activity Continued
SEPARATION (1): GOOD PROJECT AND INVESTMENT ACTIVITY CONTINUED Mainly for solid/liquid separation equipment. The self-cleaning Aqua-Guard continuous belt screen • Municipal has been a pioneer in this field and remains the reference for fine screening. Investment activity at unchanged good levels (se
Slide 25: Separation (2): Increase in Order Intake and Sales
SEPARATION (2): INCREASE IN ORDER INTAKE AND SALES Earnings and profitability slightly up. UNIT 2018 2017 +/- Order intake strongly up for Order intake MEUR 696.7 622.4 +11.9% solid/liquid separation equipment. Stable order Order backlog (as of end of period) MEUR 403.7 364.5 +10.8% intake in feed &
Slide 26: Chapter Overview
CHAPTER OVERVIEW 01 FY 2018 AT A GLANCE 02 03 04 26 / ANDRITZ / RESULTS OF THE ANDRITZ GROUP FOR 2018 / MARCH 6, 2019 / © ANDRITZ GROUP
Slide 27: Targets for 2019
TARGETS FOR 2019 • Processing of high order backlog according to schedule. • Focus on securing long-term profitability by further optimization of capacity and organizational structures. • Integration of newly acquired companies. • Improve net working capital. 27 / ANDRITZ / RESULTS OF THE ANDRITZ GR
Slide 28: Outlook for 2019
OUTLOOK FOR 2019 Largely unchanged prospects and expectations for markets served by ANDRITZ. • For 2019, ANDRITZ expects a significant increase in sales compared to 2018 due to • high order backlog as of end of 2018 and • sales contributions by the companies acquired in 2018. • Net income and profit
Slide 29: Disclaimer
DISCLAIMER This presentation contains valuable, proprietary property belonging to ANDRITZ AG or its affiliates (“the ANDRITZ GROUP”), and no licenses or other intellectual property rights are granted herein, nor shall the contents of this presentation form part of any sales contracts that may be con