Andritz Ag Graz Akt

Good morning, ladies and gentlemen, and welcome to the Android Q2 2025 Result Conference Call and Live Webcast. My name is Yusuf, the Chorus Call Operator. I would like to remind you that all participants will be in listen-only mode and that this conference is being recorded. The presentation will be followed by a Q&A session. If you would like to ask a question from the webinar, you may click the Q&A button on the left side of your screen and then click the Raise Your Head button. If you are connected via phone, please press star followed by one on your telephone keypad. For operator assistance, please press star, zero, or the operator assistant button. At this time, it's my pleasure to hand over to Matthias Pfeifenberger. Please go ahead.

Welcome to our Q2 earnings call from Graz. I would like to present your hosts today. With me are our CEO, Dr. Joachim Schönbeck, and our CFO, Vanessa Helving. We will start the call with the key highlights, followed by the financial performance review, and then go into an update on the business areas, followed by the outlook and 2027 targets. We will then conduct the Q&A. Please make sure you register with your full name for the Q&A. In the end of the presentation, I would point you at the disclaimer. Please read it carefully. And now I'd like to pass over to Joachim.

Thank you very much. Good morning to everybody. Thank you for attending our call, spending the time with us and jumping right into the details. We are very pleased that we can report another very strong quarter in order intake. We had a um extremely high order intake in q2 and also first half of this year we did not see any significant impact of the tariffs growth was mainly driven by our business areas metals and hydropower we had a i would say a very satisfactory level and pulp and paper and we had a decline in environment and energy. The book to bill was again above one for the third consecutive quarter. We saw a decrease in revenue, though, that results from the low order intake we recorded last year, and we had a moderately negative FX impact due to the strengthening of the euro against major currencies we have in our portfolio. We have a stable comparable EBITDA margin that's based on a very solid improved order execution and selectively also better pricing. We could increase the service share increasing in a year-to-year basis. If you look to the numbers themselves, order intake for the second quarter was at 2.4 billion Euro, revenue 1.9. Order intake was up 26%. And as revenue declined, the order backlog also rose by 7% to 10.4 billion Euro. So a very solid backlog to generate the revenue to come. EBITDA margin comparable was at 8.4% compared with the 8.3 in Q2, 2024. The reported EBITDA margin though dropped to 7.8% down from 8.6. And that was mainly driven by severance expenses for restructuring needs. The net income margin is at 4.5% down from, sorry, 5.4% down from 5.7 at 102 million Euro. A quick look to the First half financials, order intake very strong at 4.7 billion euro, up 23% compared to the previous year. Revenue, as I said, for the second quarter down by 8% to 3.7 billion. Backlog is the same, and the EBITDA margin at 8.3%. compared to the 8.4 and the reported margin a bit down due to the restructuring costs that we had. We could see a very good and continuously increasing project activity. It's reflected in the momentum in the order intake that we see. And we are very happy that apparently we have the right offerings for our customers in these challenging times and are happy that they are staying with us with a lot of confidence and trust to our solutions. If we have a closer look to order intake in the first half and in the second quarter, we can see in the total second quarter up by 26%. That's mainly driven by hydropower and metals. Hydropower jumped by 173% from 284 to 700. 77 million euro metals jumped by 200 million from 321 to 527 so that's uh that is that's really good part and paper decreased slightly against the q2 but we have what we see a strong growth in the uh in the first half of the year and it's uh basically only um environment and energy where the markets are extremely cautious at the moment to place orders. Project pipeline is quite good, but decisions are awaiting. However, what we could see in environment energy is a good growth in feed and engineering studies, especially for the for our new products like carbon capture and green hydrogen. The revenue, as I already mentioned, decreased in the second quarter and in the first half. We would see an increase compared to these figures for the second half of the year. But the low order intake that we had in 2024 drove this decline, especially in pulp and paper and in metals. In both areas, we had the necessary capacity reductions have been started. And I would say to a majority already implemented. Hydropower gets a strong momentum. It's increasing revenue and executing the large backlog. And we could see in hydropower a very nice growth in the service business. Environment and energy, we have the revenues at an all-time high and a very solid growth in the service revenue. The backlog is again solidly up at 10.4 billion Euro. It's usually two-third of that is driven by pulp and paper and hydropower. And you can, we expect about two-third to be executed in the next 12 months. EBITDA development, we have a stable comparable EBITDA margin, and we are falling on the EBITDA along with a decrease in revenue. On the reported EBITDA margin, we are dropping from 8.4 to 7.9%, and that's mainly driven by the one due to the capacity reductions. in pulp and paper and in metals on our esg program we are i would say we are well on track the majority of the targets for the 2025 have already been reached it's the share of sustainable solutions and products where we are lagging behind and the share of women in the workforce where we are below the target everything else we have reached the targets already and are preparing for new ones which will be communicated within the next couple of months we had a very good run on our acquisition strategy in the um in the first half of this year we completed four major acquisitions very important very perfect complementary fit to our product offerings in our various areas the ldx we already reported in q1 that that was closed in february then we acquired a jelly paper a specialist for paper and tissue machine machines especially in the winder and rewinder business filling a a product that we had in our portfolio. They have locations, they're based in Italy, but have a strong location also in China. Revenue is approximately 70 million. We are strengthening our customer service for the energy business, for boiler cleaning equipment, diamond power, more than 120 years of experience to clean boilers. We are working together with Diamond Power for many years, so we know them. And I would say it's a perfect fit to our product offerings. And it is a, I would say, significant step forward to serve the customers for the outages out of one hand. we received good feedback from the market for this acquisition. Same applies for acquisition of Salico Group. It's a small Italian machine maker for finishing equipment for strip and plate, exactly located in between our metals processing and metals forming part because they are uh providing the equipment to further um to further partition the strips and the plates for the um as the incoming products for the press lines in our shooter business so that makes makes a lot of sense to uh to close that gap review is approximately 100 and very complimentary to our current business. Service is steadily increasing. The revenue is increasing to an all-time high of 44%. So we are continuing on that track. With the acquisitions we made, we will strengthen that further. So that's, I would say, that is on the right track. And with that, I would like to pass on to Vanessa to give us some more details on the financial performance.