The ANDRITZ GROUPatl.g.andritz.com/c/com2011/00/02/41/24166/1/1/0/... · 1. ANDRITZ GROUP overview 2. Financial development Q3/Q1-Q3 2012 and acquisitions 3. Long-term goals and outlook

Company presentation December 2012The ANDRITZ GROUP

2

Contents

1. ANDRITZ GROUP overview

2. Financial development Q3/Q1-Q3 2012 and acquisitions

3. Long-term goals and outlook

Company presentation December 2012

HYDRO40-45%*

Systems for the production of all types of pulp and of certain paper grades (tissue, cartonboard); boilers

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* Long-term average share of the ANDRITZ GROUP’s total order intake

Electromechani-cal equipment for hydropower plants (mainly tur-bines and genera-tors); pumps; turbo generators

Equipment for the mechanical and thermal solid/liquid separation for municipalities and various industries

Systems for the production and processing of stainless steel and carbon steel strips; industrial furnaces

Systems for the production ofanimal feed pellets (pet and fish food) and biomass pellets (wood, straw)

PULP & PAPER30-35%*

SEPARATION10%*

METALS10%*

FEED & BIOFUEL5%*

Company profileA world market leader in most business areas


4

Sales of the ANDRITZ GROUP (MEUR)

Strengthening of the market positionGrowth through organic expansion and acquisitions


PULP & PAPER1990 Sprout-Bauer1992 Durametal1994 Kone Wood1998 Kvaerner Hymac1999 Winberg2000 Ahlstrom Machinery2000 Lamb Baling Line2000 Voith Andritz Tissue LLC (JV)2002 ABB Drying2003 IDEAS Simulation 2003 Acutest Oy2003 Fiedler2004 EMS (JV)2005 Cybermetrics2005 Universal Dynamics Group2006 Küsters2006 Carbona2006 Pilão2007 Bachofen + Meier2007 Sindus2008 Kufferath2009 Rollteck2010 Rieter Perfojet2010 DMT/Biax2011 AE&E Austria2011 Iggesund Tools2011 Tristar Industries2011 Asselin-Thibeau2012 AES

FEED & BIOFUEL1995 Jesma-Matador2000 UMT2005 Chemes Strojarne

HYDRO2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (55.4%)2010 Ritz2011 Hemicycle Controls

METALS1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz2012 Bricmont2012 Soutec

SEPARATION1992 TCW Engineering1996 Guinard2002 3SYS2004 Bird Machine2004 NETZSCH Filtration2004 Fluid Bed Systems of

VA TECH WABAG2005 Lenser Filtration2006 CONTEC Decanter2009 Delkor Capital Equipment2009 Frautech2010 KMPT2012 Gouda

3.5543.198

3.6103.283

2.710

1.744

1.1101.481

1.225

4.596

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Strong net cash positionStable development despite acquisitions

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1-Q3 2012

Rollteck

Frautech

Delkor

Ahlströmrem. 50%

Guinardrem. 50%

Fläkt

Selas

Fiedler

IDEAS

Acutest

Thermtecrem. 24.5%

Kaiser

AFSR

Netzsch

Bird

Lenser

Universal

Lynson

VA TECH HYDRO

Kuesters

BMB

Tigép

Sindus

GE Hydro

GEHI

Kufferath

Maerz

AE&E Austria Iggesund

Tools Tristar

Industries Asselin-

Thibeau Hemicycle

Controls Hammer-

fest (55%)

DMT/Biax

Rieter Perfojet

Precision Machine

KMPT

Ritz

Hammer-fest (33%)

* Paid out after AGM for the previous year

Dividend* (MEUR):11.5 11.7 12.9 18.0 25.6 38.7 51.1 56.3 51.7 86.9 113.6

Bricmont

Soutec

Schuler(~25%)

AES

3.0


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Contents





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Q3 2012 Q1-Q3 2012

Order intake: Favorable development in Q3 2012, only slightly below high

reference figure of last year, which included a large order in HYDRO; increase in PULP & PAPER, METALS, and FEED & BIOFUEL

Order intake in Q1-Q3 2012 below extraordinarily high level of last year’s reference figure, which included three large orders (two in PULP & PAPER, one in HYDRO)

1,239 MEUR,-1% YOY

3,793 MEUR,-23% YOY

Order backlog (as of end of period): unchanged at high level

6,930 MEUR,-5% vs. EOP 2011

6,930 MEUR,+4% vs. EOY 2011

Sales: In Q3 2012 increase in all business areas except

SEPARATION In Q1-Q3 2012 sales rose in all business areas, especially in

PULP & PAPER due to processing of two large pulp mill orders

1,266 MEUR,+8% YOY

3,703 MEUR,+16% YOY

Key figures at a glance (I)


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Key figures at a glance (II)

Q3 2012 Q1-Q3 2012

EBITA: EBITA in Q3 2012 slightly below Q3 2011 EBITA in Q1-Q3 2012 increased compared to last year, but

not fully matching sales growth

87 MEUR,-4% YOY

242 MEUR,+9% YOY

EBITA margin: decline in Q3 2012 and Q1-Q3 2012, mainly due to PULP & PAPER (execution of large pulp mill orders) and SEPARATION (cost overruns at some projects and investment in business expansion in emerging markets)

6.8%(Q3 2011: 7.7%)

6.5%(Q1-Q3 2011: 7.0%)

Balance sheet September 30, 2012

Equity ratio: stable 19.4% (EOY 2011: 20.6%)

Net liquidity: continuing high cash position 1,286 MEUR, -8% vs. EOY 2011

Net working capital: unchanged at solid level -639 MEUR, +/-0% vs. EOY 2011


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Market conditions: Acceptable investment activity for modernization/rehabilitation of existing hydropower plants and for

pumped storage power stations in Europe and North America Solid project activity for new hydropower plants in the emerging markets; however China still weak Satisfactory investment activity for small-scale hydropower plants

Order intake in Q3 2012 below very high reference figure in Q3 2011 which included the Belo Monte order (330 MEUR)

Sales increased, EBITA slightly declined, EBITA margin remained at good level

HYDROContinued good business development

Unit Q1-Q3/12 Q1-Q3/11 +/- Q3/12 Q3/11 +/- 2011

Order intake MEUR 1,504.6 1,812.7 -17.0% 391.4 715.6 -45.3% 2,096.2Order backlog (as of end of period) MEUR 3,944.6 3,978.8 -0.9% 3,944.6 3,978.8 -0.9% 3,671.4Sales MEUR 1,245.7 1,223.0 +1.9% 438.7 417.9 +5.0% 1,772.9EBITDA MEUR 114.0 112.5 +1.3% 39.3 40.3 -2.5% 174.3EBITDA margin % 9.2 9.2 - 9.0 9.6 - 9.8EBITA MEUR 92.4 92.8 +0.4% 32.1 32.8 -2.1% 147.7EBITA margin % 7.4 7.6 - 7.3 7.8 - 8.3Employees (as of end of period) - 7,534 7,343 +2.6% 7,534 7,343 +2.6% 7,285


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Market conditions: Favorable project activity for modernization projects, capacity increases, and greenfield pulp mills Good market development for biomass/recovery boilers

Order intake in Q3 2012 increased significantly with favorable development in practically all divisions

Sharp rise in sales due to processing of large orders, earnings unchanged at solid level, profitabilitydown due to order mix

* At the beginning of 2012, there was a minor product shift from the SEPARATION to the PULP & PAPER business area. Comparison figures for 2011 have been adjusted accordingly in both business areas.

PULP & PAPERSatisfactory business development

Unit Q1-Q3/12 Q1-Q3/11* +/- Q3/12 Q3/11* +/- 2011*

Order intake MEUR 1,523.3 2,372.1 -35.8% 542.1 318.4 +70.3% 2,694.1Order backlog (as of end of period) MEUR 2,088.7 2,497.5 -16.4% 2,088.7 2,497.5 -16.4% 2,230.0Sales MEUR 1,724.8 1,293.9 +33.3% 561.1 499.7 +12.3% 1,884.9EBITDA MEUR 121.7 98.9 +23.1% 43.2 41.7 +3.6% 138.1EBITDA margin % 7.1 7.6 - 7.7 8.3 - 7.3EBITA MEUR 106.0 86.7 +22.3% 37.9 37.9 0.0% 120.4EBITA margin % 6.1 6.7 - 6.8 7.6 - 6.4Employees (as of end of period) - 6,677 6,128 +9.0% 6,677 6,128 +9.0% 6,208


Acquisition of AES, USAStrengthening of air pollution control systems

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Products and services:ANDRITZ acquired Allied Environmental Solutions (AES), now ANDRITZ Environmental Solutions, a supplier of air quality control technology for the power generation market in the USA

Strategic fit and goal:Strengthening of existing air pollution control portfolio of ANDRITZ Energy & Environment (AE&E) and market entry for AE&E products/services in the USA

Headquarters:Columbia, Maryland, USA

Number of employees:~40

Annual sales:~30 MEUR

▲ Dry scrubbing technology for Circulating Fluidized Bed (CFB) boiler

▲ Fabric filter systems, especially for coal-fired power plants


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Market conditions: Mining and environmental: some weakening of project activity China Food and chemical: solid project activity

Order intake and sales declined in Q3 2012; however, order intake and sales in Q1-Q3 2012 slightly rose compared to reference figures of last year

Earnings and margin significantly down due to cost overruns at some projects and investment for expansion in emerging markets

* At the beginning of 2012, there was a minor product shift from the SEPARATION to the PULP & PAPER business area. Comparison figures for 2011 have been adjusted accordingly in both business areas.

SEPARATIONDisappointing earnings and sales development

Unit Q1-Q3/12 Q1-Q3/11* +/- Q3/12 Q3/11* +/- 2011*Order intake MEUR 365.9 352.0 +3.9% 106.5 115.0 -7.4% 438.8Order backlog (as of end of period) MEUR 320.4 287.4 +11.5% 320.4 287.4 +11.5% 250.8Sales MEUR 304.7 296.4 +2.8% 104.2 117.3 -11.2% 419.9EBITDA MEUR 20.7 29.2 -29.1% 7.2 13.7 -47.4% 42.7EBITDA margin % 6.8 9.9 - 6.9 11.7 - 10.2EBITA MEUR 17.3 24.9 -30.5% 6.0 12.3 -51.2% 36.7EBITA margin % 5.7 8.4 - 5.8 10.5 - 8.7Employees (as of end of period) - 1,748 1,714 +2.0% 1,748 1,714 +2.0% 1,752


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Acquisition of GMF-Gouda, NetherlandsComplementing drying technology in SEPARATION

Products and services:Drum dryers and paddle dryers for the food industry (e.g. baby food), the chemical industry, and the municipal sector of the environmental industry

Strategic fit:Complementing and extending the product/service portfolio of ANDRITZ SEPARATION in the drying sector; strengthening of ANDRITZ position in sludge drying

Headquarters: Waddinxveen, Netherlands

Number of employees:~ 140

Annual sales: ~ 40 MEUR

Important reference customers: Nestlé, Heinz, BASF Paddle dryer ►


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Market conditions: Global market activity remained slow Only selective project activity due to ongoing overcapacities in the steel/stainless steel production and

related limited capex

Order intake significantly up due to a large order that was put into force in Q3 2012

Very favorable development of sales, earnings, and margin despite weak market environment

METALSSolid business development despite weak market environment

Unit Q1-Q3/12 Q1-Q3/11 +/- Q3/12 Q3/11 +/- 2011Order intake MEUR 270.8 253.8 +6.7% 159.5 70.7 +125.6% 318.6Order backlog (as of end of period) MEUR 512.3 510.2 +0.4% 512.3 510.2 +0.4% 465.1Sales MEUR 294.4 263.4 +11.8% 117.7 101.3 +16.2% 372.7EBITDA MEUR 19.3 12.9 +49.6% 8.7 5.9 +47.5% 21.5EBITDA margin % 6.6 4.9 - 7.4 5.8 - 5.8EBITA MEUR 17.6 11.3 +55.8% 8.0 5.3 +50.9% 19.4EBITA margin % 6.0 4.3 - 6.8 5.2 - 5.2Employees (as of end of period) - 1,146 952 +20.4% 1,146 952 +20.4% 945


▲ Mechanical press line for the automotive industry

Acquisition of Schuler AGANDRITZ has access to 89.24% of Schuler shares

At the end of May 2012, ANDRITZ signed an agreement with Schuler-Beteiligungen GmbH to acquire its entire 38.5% stake in Schuler AG, Germany; purchase price: 20.00 EUR/share

ANDRITZ bought 24.99% stake in Schuler after announcement of the deal

Voluntary public takeover offer by ANDRITZ for the remaining shares of also 20.00 EUR/share 25.75% of outstanding shares were tendered

Closing of acquisition of Schuler-Beteiligungen GmbHʼs block of shares as well as takeover offer are contingent upon approval of both transactions by relevant anti-trust authorities

ANDRITZ has access to 89.24% of Schuler AG


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Global market leader for metal forming equipment (complete pressing lines, single presses, automation systems, and services)

Main end customer industries: automotive and automotive suppliers (~75%), packaging, household appliances, minting, aerospace (~25%)

Annual sales: ~1.1 bn. EUR

Backlog*: ~1.2 bn. EUR

5,300 employees* and global pre-sence with production and service sites in more than 40 countries

Sales by region*:

Order intake, sales, and EBITDA margin of Schuler Group

CAGR order intake: +9.5% CAGR sales: +5.8% EBITDA margin: avg. 6.6%

836

1,006

591

818

1,319

725

966823 878

1,046959

650

10.3

6.7

-0.4

9.5

4.6

8.8

0

200

400

600

800

1,000

1,200

1,400

2006/07** 2007/08 2008/09 2009/10 2010/11 First ninemonths2011/12

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Order intake (MEUR) Sales (MEUR) EBITDA margin (%)

Schuler: Global leader in metal forming technology,broadening ANDRITZ’s product range in METALS

* First nine months 2011/12** Including Müller Weingarten Group

April 1-September 30

Germany 32%Europe (without Germany) 19%Asia 35%America 14%



CAGR 2008-2016E

■ Others (South America, South Africa) +6.1%

■ China +15.7%

■ Asia (without China) +1.5%

■ USA +3.0%

■ Europe +0.6%

Source: OICA, PwC, JSC Automotive, figures include number of cars and light commercial vehicles (without heavy trucks, buses, and coaches)

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E

Million units

67

58

73 76 7882

8590

94

Global automobile manufacturing to grow by 4% p.a.Strongest growth in emerging markets


Tailor-welded blanks volume worldwideChina again outpaces rest of the world

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Source: J.D. Power

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E

CAGR 2008-2016

■ Mercosur +3.4%

■ China, rest of Asia +7.8%

■ Japan +0.4%

■ Nafta +1.4%

■ Europe +1.3%

247

MEUR

243 244265 271 274

298309

319

ANDRITZ SoutecA leading supplier of welding systems

Products and services:Laser and rolled seam resistance welding systems for the metalworking industry

Strategic fit:Welding systems for tailor-welded blanks

Headquarters:Neftenbach, Switzerland

Number of employees:~90

Annual sales:~30 MEUR

Important reference customers:Baosteel (China), Arcelor Mittal (Europe, USA), voestalpine (Austria)


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Market conditions: Good project activity in the animal, aquatic, and pet food industries, especially in North and Central

America; particularly the special feed area showed favorable project activity Satisfactory project activity for biomass/wood pelleting equipment, mainly in Europe, South America, and

the USA

Significant increase of order intake due to good development of both feed and biomass business

Sharp rise in sales and earnings; reasonable development of margin

FEED & BIOFUELGood business development

Unit Q1-Q3/12 Q1-Q3/11 +/- Q3/12 Q3/11 +/- 2011Order intake MEUR 128.6 107.9 +19.2% 39.3 34.3 +14.6% 159.2Order backlog (as of end of period) MEUR 63.8 51.0 +25.1% 63.8 51.0 +25.1% 65.8Sales MEUR 133.8 107.5 +24.5% 43.9 36.9 +19.0% 145.6EBITDA MEUR 10.4 8.2 +26.8% 3.0 3.1 -3.2% 9.6EBITDA margin % 7.8 7.6 - 6.8 8.4 - 6.6EBITA MEUR 8.8 6.2 +41.9% 2.5 2.0 +25.0% 7.3EBITA margin % 6.6 5.8 - 5.7 5.4 - 5.0Employees (as of end of period) - 581 555 +4.7% 581 555 +4.7% 560


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Contents


Sales of the ANDRITZ GROUP (MEUR)


* Excluding Schuler Group: Consolidation into the ANDRITZ GROUPʼs accounts expected by June 2013 at the latest (depending on approval by anti-trust authorities)

Sales outlook 2012 and 2013

22

~0.5-1.0 bn.EUR Schuler*

2012: Sales increase to approx. 5 billion EUR expected, mainly due to processing of the large pulp mill orders received in 2011

2013: first-time consolidation of Schuler

2010 et seq.: 7.0% over the cycle

* Including restructuring expenses

2005-2009: avg. 6.0% 2000-2004: avg. 5.3%

Target to continue long-term profitable growth 7.0% EBITA margin over the cycle

23

*

0


Long-term structural trends within all five business areas should support long-term organic growth of ANDRITZ

Acquisitions will remain strategic focus to complement product range and support long-term growth

Cautious market environment but still good project activity in all business areas except METALS, which is expected to continue at a moderate level this year

Sales and earnings goals: Sales 2012: ~5.0 bn. EUR Sales 2013: ~5.0 bn. EUR, consolidation of Schuler during 2013 Group’s EBITA margin: goal of 7% over the cycle confirmed

Summary

24 Company presentation December 2012

25

Certain statements contained in this presentation constitute ‛forward-looking statements.’ These statements, which contain the words ‛believe’, ‛intend’, ‛expect’ and words of similar meaning, reflect management’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially.

As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it wouldbe required to do so under applicable law.

Disclaimer


Documents

The ANDRITZ GROUPatl.g.andritz.com/c/com2011/00/02/41/24166/1/1/0/... · 1. ANDRITZ GROUP overview 2. Financial development Q3/Q1-Q3 2012 and acquisitions 3. Long-term goals and outlook