Andritz Ag Graz Akt

Ladies and gentlemen, welcome to the UNRID's full year 2025 results conference and live webcast. I'm Sergan, the course call operator. I would like to remind you that all participants will be in listen-only mode and the 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 hand button. If you are connected via phone, please press star followed by 1 on your telephone keypad. For operator assistance, please press operator assistance button on the bottom left side on your screen or star 0 on your telephone keypad. At this time, it's my pleasure to hand over to Matthias Eifenberger, Head of Investor Relations. Please go ahead, sir.

Good morning and a warm welcome from Andritz out of Vienna this morning. After preliminary headline results a few weeks ago, it's my pleasure to welcome you to the final full year earnings call and webcast. I have the pleasure to present to you our CEO Dr. Joachim Schönbeck and our CEO Vanessa Helving. The earnings presentation will be structured as usual. We will present the CEO highlights, followed by the financial performance, followed by the performance across the business areas, and then ending up with guidance. We'll also conduct a Q&A session, and please register with your full name. And now I'd like to pass on to Dr. Joachim Schönberg for his elaborations.

Thank you, Matthias. Good morning, everybody. Thank you for being with us this morning on the disclosure, not the disclosure, but on the details of our last year's results. If we look back to the year 2025, we can say the world has been cautious on investments but rich in geopolitical surprises. For hundreds, this means we go back to what we can do best, giving out our clear priorities and executing with a high discipline. And I'm very proud how well our team achieved what has been asked to do and the dedication they put into it to achieve the results we finally came up with. The trust of our customers helped us through this difficult year, and we are happy that they showed the confidence with the many orders they placed with us. We definitely came back to growth in order intake. We had a strong order intake in the full financial year, strongly driven by hydropower but also by pulp and paper. We saw a slight decline in environment and energy where I would say investment decisions were pending and postponed. but structurally we believe demand is okay. And in metals we definitely are faced with broader structural issues in the industries in automotive as well as in the steel and metals industries where investment was not at highest priority for the last year. Our revenue declined a bit, but due to our disciplined execution and cost discipline we could keep the comparable EBITDA margin stable. Very, very happy that this turned out very well. We compensated significant FX effect translation and through the improved order execution on the one side, and the timely implemented capacity reductions, we could protect the bottom line very well. We even saw margin progress in hydropower as well as in metals. All in all, we are confident to propose to the General Assembly to increase the dividend to 2.5%. 7 euro per share up from 2.6 euro per share in the previous year and the payout ratio increases from 52% last year to 58% in this year. So that's all well in line to what we have promised to you, how we want to manage that part. If we have a look to the Q4 in more detail, The order intake reached the 2 billion. That's down from the previous year. Revenue at a high, 2.3 billion euro, up 3% from the previous year. Order backlog reached record high in hundreds history, 10.5 billion Euro at year end, never had that, 7% up from last year. EBITDA margin in the Q in the fourth quarter. at 9.7% and at 228 million Euro. The reported EBITDA was at 8.5%, 200 million and the gap is basically all costs for restructurings that have been done and that are prepared for this year. Net income is at 6.6% and €154 million. If we have a look to the full year order intake, a bit shy of €9 billion with €8.9 up 8%. Revenue €7.9 billion, so a very positive book-to-bill ratio. Order backlog, as I said, 10.5%, and the comparable EBITDA margin for the full year was at 8.9%, exactly where it has been last year, €698 million. The reported EBITDA is down at 8.2%, down from 8.6% at €648 million. Here the gap is the cost mainly for the restructuring that we have done in the year 25 and that we will do in the year 26. Net income is with 5.8 at a good stable level, 457 million Euro. The project activity, as you can see, is on a considerably high level, now five quarters in a row, with more than 2 billion euro order intake in a quarter. And with the project, I would say, pushovers from Q4 into Q1, we expect also that trend not to break. If we go into the details of the business areas, you see a nice increase in order intake. If we look on a quarter-to-quarter base, we increased to previous year in all three quarters, but in the last quarter where we dropped by 21%, that was driven by a very large order we booked for hydro business, the project in the first quarter of 2024. So that's, I would say, more a one-time effect. If we look to the business areas, we can see a very nice increase in pulp and paper and hydropower, 20% up for pulp and paper and 16% up for hydropower, while in metals it's down by 13% for the full year, and environment and energy. basically 3 percent down. So I would say, pipe and paper, very happy to have – to be successful on the – let's say this wave of investments we saw in China for backward integrating The paper industry, in total we receive five orders for complete pulp mills in China. Very huge success showing that we are really well positioned in the market itself, but also technological wise. In hydropower, strong demand on renewable energy, but also our new offerings around grid stability, energy storage and turbo generators is picking up. So I would say overall it's the energy demand and in particular the demand in electrical energy is really supporting us. In matters, the investment climate is down and basically we saw the third year in a row where the market declined and that is true for the steel as well as for the automotive industry. Environment and energy, we saw interest in the market for these new green technologies for the green transition of industry, namely green hydrogen and carbon capture, but we did not see investment decisions in the markets where we are in, namely Europe and North America. regulatory uncertainties playing definitely one role. High energy prices still in Western Europe or in large parts of Western Europe play another role. But I would say on the positive side, we had received many orders for engineering studies, both for carbon capture and green hydrogen. So we see there is a demand Industry is preparing and we, UNREDS, we seem to be a trusted partner for these endeavours. Looking to the revenue, we see a decline. compared with the previous year of 5% here and here and you can see that we had a decline in the first three quarters and we had basically the turning point in the fourth quarter where we exceeded the revenue of the previous year's quarter So also here we believe that this trend will continue in the upcoming year because the good order intake and the significant backlog we have will definitely help us there. You could see in the fourth quarter, all through business areas, pulp and paper, metals and hydropower increased their revenue compared with the previous year only environment and energy dropped a bit and over the full year only hydropower could increase. could increase the revenue. That's basically in line what I've told you in the previous calls that we had together that in the hydropower, the large order intake that we have takes a bit more time than in other businesses to turn into revenue. But as we execute disciplined and in time, this revenue will come. And you see this trend starting now and it will It will prevail. One word to the, I would say, significant impact on the revenue side is definitely the FX translation, which was 85 million euro in the fourth quarter and 222 million for the full year. Significant impact. strong Euro and we will see what this impact will be for this year. The backlog, as I said, record high, 10.5 billion at year end, and you can also see that the historical balance between pulp and paper and hydropower is now largely driven towards hydropower, now 43%, almost 50% of our entire backlog from hydropower, and therefore... we can drive the revenues out of that very effectively over time. Looking to the EBITDA, comparable EBITDA margin remains stable. The absolute EBITDA went down by 6% along with the revenue. I would say we are quite happy that despite the downturn we could keep the margin. Main drivers for that is timely implemented and executed capacity reductions in the area where needed, namely in metals and in pulp and paper. but also significant improvements in project execution and there I can specifically name metals on the one side and hydropower on the other side. We really made a strong improvement on that discipline. I would say looking a bit forward, while pipe and paper, some residual capacity adjustments need to be done, but it's mainly right sized for what we see to come. in metals. We will continue the restructuring this year because we see the markets will demand it and we also see that the business is really capable of delivering good operational results at the same time when they are restructuring. So very happy to see that. Turning to ESG, we have finished our ESG program, which was targeted for 2025, I would say with a very satisfactory result. We reached all but two goals and these two goals I would say we missed only slightly. The one we missed was this share of green products. We wanted to have 50% of our revenue based on that. We ended up with 47%. Still it's a record high level 400 and I believe for sure targeting in the right direction. And we significantly increase the share of women in the workforce. You also see it in this panel. We are not, but in total we are not on one third. So we wanted to be at 20%, we ended up with 17% at the end of 2025. Maybe the target was a bit too ambitious, but that is the way it is. So we see we are moving in the right direction, and as it was, Well executed this program, we gave way to a new ESG program for environment, social and governance. We want to enable the green transition and we still believe there is demand and we can cope with that. We want to support people to grow, people in hundreds and outside hundreds, and we want to govern with integrity. These are our commitments for the new ESG program. We have targets laid out for 2030 on the environment, the social and the governance. I don't want to go through with you in all the details. No major differences to what we have done before. Maybe one main difference is that on the greenhouse gas emissions, we got certified and approved by SBTI. So our reduction targets on greenhouse gas emissions is now fully supporting the Paris climate targets. That is good. On the social, we focus on excellent frequency rate. because that everybody returns safe from working in hundreds is still one of our key priorities. So we want to go below one ambitious targets, but I believe we have the tools in hand to do that. We're focusing on women in leadership positions. We want to move above 15% and we want to keep the voluntary return over below 4%. Very important employee engagement index. We want to stay there above 75%. We believe in a people's business like we are doing, that's very important to deliver to our customers what they expect when they engage with hundreds. Under governance, we put a focus on supply chain, as you rightly expect, that we ourselves will govern in full compliance and so therefore we have moved the targets into the supply chain. Supplier social audits, supplier pre-qualification, supplier rating on sustainability by third parties. So that's the area we are focusing on. And the excellent work of our teams in the ESG has also been recognized by the outside world and the top rating agencies all rated us up with very nice results. We moved to the science-based target, so I believe we have made up the gap that has been communicated to us in the previous years. So I would say we are on a good track there. We had a very successful year in 2025 regarding M&A. We had made six major acquisitions. I think they all have been communicated individually anyhow. two acquisitions that completed our portfolio. The one was the Solico group in metals basically being fundamental closing of the gap between the metals processing and the Schuller part of our metals business. We have a portfolio completion done on the paper side. We acquired Arcelli in Italy. They are strong in supporting our business on the tissue machines, but they are particularly strong on the winder technology. That was one of the key technologies we were missing. On decarbonization, we acquired LDX Solutions in the United States. That is an engineering company offering clean air technology. ideal addition to our product portfolio, technology wise, but also excellent addition for our strategy to increase our local content in the United States and we are now well positioned there to support to support the industry for their environmental investments. In China, we acquired Sun Cheng. It's a technology provider for induction heating technology. They are specialized in induction heating for cold strip. So ideally a combination with our matrix processing group. We know them already from several projects we have done together with them inside and outside China and so therefore We believe it's an excellent acquisition and can really give us a more complete offering to the customers in an area where they really are looking for a single source solution from us. On the customer service, we have made two acquisitions, both acquired from Babcock and Wilcox in the United States. The one is Diamond Power, a soup lower company for boiler cleaning, and the other is a material handling company taking care of the ash that is coming out of the boilers. Both are very good. We know the companies very well. Diamond, they are, I think, 130, 140 years old. It's an ideal fit, not only that we know them from the industry, but also our culture-wise. So we are very confident our six acquisitions will fully deliver what we expect from the business plans that we have concluded. Service business reached another record level and that is very exciting, especially if we know about the decline we have on the paper side, in the paper business and with the paper machine utilization around the globe. Not above 60%, also the service revenues are down, so we are very happy that we could increase revenue once more and keep the growth stable in that very important area. We did not only reach all-time high in the service revenue, we also increased the relative share to 44%, so you see we are moving closer and closer. to the 50% we all wish that could be. Having said that, I hand over to Vanessa to learn about the financial performance. Thank you.