The ANDRITZ GROUPatl.g.andritz.com/c/com2011/00/02/53/25397/1/1/0/...Company presentation July 2013 Recent acquisitions by business area 2011 AE&E Austria 2011 Iggesund Tools 2011

Company presentation July 2013The ANDRITZ GROUP

2

Contents

ANDRITZ GROUP overview and current development

Long-term goals and outlook

Company presentation July 2013

3

Company profileA world market leader in most business areas


HYDRO35-40%*

Systems and equipment for production of pulp, paper, tissue, and board; energy boilers; produc-tion equipment for bio-fuel/biomass; plants for production of nonwovens and plastic films

* Average share of ANDRITZ GROUP’s total order intake

Electromechanical equipment for hydro-power plants (turbines and generators); pumps (e.g. for water transport and irrigation); turbo-generators for thermal power stations

Equipment for solid/liquid separation for municipalities and various industries; systems and equipment for production of animal feed pellets

PULP & PAPER25-30%*

SEPARATION10%*

Presses for metal-forming; systems for production and process-ing of stainless steel, carbon steel, and non-ferrous metal strip; in-dustrial furnaces; resist-ance welding equipment

METALS25%*

4

Sales of the ANDRITZ GROUP (MEUR)

1.2251.481

1.744

2.7103.283

3.6103.198

3.554

4.5965.177

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Strengthening of market positionGrowth through organic expansion and acquisitions


Recent acquisitions by business area

2011 AE&E Austria2011 Iggesund Tools2011 Tristar Industries2011 Asselin-Thibeau2012 AES

METALS1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz2012 Bricmont2012 Soutec2013 Schuler (> 90%)2013 FBB Engineering

SEPARATION1992 TCW Engineering1995 Jesma-Matador1996 Guinard2000 UMT2002 3SYS2004 Bird Machine2004 NETZSCH Filtration2004 Fluid Bed Systems2005 Lenser Filtration2006 CONTEC Decanter2009 Delkor Capital Equipment2009 Frautech2010 KMPT2012 Gouda2013 Shende Machinery (80%)

HYDRO2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (59%)2010 Ritz2011 Hemicycle Controls

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/Biax

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013

5

Continuing strong net cash positionSchuler fully paid

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 Hemi-

cycleControls Hammer-

fest (59%)

DMT/Biax

RieterPerfojet

Precision Machine

KMPT

Ritz

Hammer-fest (33%)

* Paid out after AGM for the previous year

Dividend* (MEUR):12 12 13 18 26 39 51 56 52 87 114

Bricmont

Soutec

Schuler(~25%)

AES

Gouda

3 124

Schuler(>65%)

Shende Machinery (80%)

FBB


Key figures Q1 2013 at a glance

Q1 2013 Q1 2012 +/-Order intake: solid level ‒ however, declinecompared to high reference figure of last year

1,288 MEUR (thereofSchuler: 96 MEUR)

1,361 MEUR -5%

Order backlog (as of end of period): substantial increase due to Schuler

7,844 MEUR (thereofSchuler: 1,126 MEUR)

7,035 MEUR +12%

Sales: slight decline mainly due to PULP & PAPER 1,164 MEUR (thereofSchuler: 109 MEUR)

1,186 MEUR -2%

EBITA and EBITA margin: strong decrease mainly dueto PULP & PAPER (provisions for pulp mill project in South America) EBITA: EBITA margin:

14 MEUR 1.2%

73 MEUR 6.1%

-80%-

Balance sheet March 31, 2013 Dec. 31, 2012 +/-Equity ratio: decline due to Schuler acquisition 15.8% 20.0% -

Net liquidity: continuing high cash position despite Schuler acquisition 885 MEUR 1,286 MEUR -31%

Net working capital: stable at solid level -586 MEUR -632 MEUR -7%The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available


1,1861,164

Q1 2012 Q1 2013

Group sales (MEUR)

Sales slightly down ‒ strong decline in PULP & PAPER dueto significant sales contribution of large pulp projects in Q1 2012

Q1 2013

PULP & PAPER: -20%

METALS: +126% (+3% ex Schuler)

SEPARATION: -1%

HYDRO: -6%

-2%

Sales by business area Q1 2013 vs. Q1 2012

thereofSchuler: 109

The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available. The FEED & BIOFUEL business area was allocated to the SEPARATION business area as of January 1, 2013; the reference figures for the previous year were adjusted accordingly.


1,3611,288

Q1 2012 Q1 2013

Solid order intake ‒ however, declinecompared to high reference figure of last year

Q1 2013

PULP & PAPER: -20%

METALS: +125%(-25% ex Schuler)SEPARATION: -14%

HYDRO: -4%

Group order intake (MEUR) Order intake by business area Q1 2013 vs. Q1 2012

thereofSchuler: 96

-5%



Sales Q1 2013 Q1 2012

Europe 45% 37%

North America 15% 13%

South America 15% 25%

Asia (without China) 11% 13%

China 10% 9%

Others 4% 3%

Order intake and sales by regionWell-balanced geographical exposure

Order intake Q1 2013 Q1 2012

Europe 42% 47%

North America 13% 13%

South America 7% 15%

Asia (without China) 25% 10%

China 7% 7%

Others 6% 8%

Europe + North America: 60% Emerging markets: 36% Others: 4%

Europe + North America: 55% Emerging markets: 39% Others: 6%


5,291

6,683 7,035 6,615

7,844

2010 2011 Q1 2012 2012 Q1 2013

Order backlog by business area Q1 2013 vs. Q1 2012 (as of end of period)

Q1 2013

Group order backlog as of end of period (MEUR)

PULP & PAPER: -14%

METALS: +225%(-14% ex Schuler)SEPARATION: -4%

HYDRO: +2%

Order backlog significantly up due to Schuler

+19%

Q1 2013 vs.Q1 2012: +12%

thereofSchuler:

1,126



EBITA margin (%)

SE: 8ME: 5

PP: 30

HY: 30

Q1 2012 Q1 2013

EBITA (MEUR)

EBITA and margin significantly downdue to PULP & PAPER and SEPARATION

-80%

EBITA, at 14.2 MEUR, decreased by 80% versus Q1 2012 (72.5 MEUR), thus declining significantly more than sales

EBITA in PULP & PAPER down to -23.7 MEUR (Q1 2012: 30.4 MEUR)

EBITA in SEPARATION declined to -2.1 MEUR (Q1 2012: 7.7 MEUR) due to cost overruns (technical problems related to market launch of some new products in China)

The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available


73

14

EBITA margin by business area (%)

HY PP ME SE

█ Q1 2012 █ Q1 2013

12

Significant drop in earningsdue to provisions in PULP & PAPER

EBITA in PULP & PAPER down to -23.7 MEUR in Q1 2013 (Q1 2012: 30.4 MEUR) due to mid-double-digit

provisions related to a pulp mill project in South America

ANDRITZ believes that certain parts of these additional costs are not within its responsibility and will pursue

to get reimbursed

From today’s point of view, the current provision level is expected to be sufficient; however, further

provisions in the coming quarters cannot be excluded


Key figures Q1 2013 at a glance


Unit Q1 2013 Q1 2012 +/- 2012

Order intake MEUR 1,288.3 1,361.2 -5.4% 4,924.4

Order backlog (as of end of period) MEUR 7,844.3 7,034.7 +11.5% 6,614.8

Sales MEUR 1,163.8 1,185.7 -1.8% 5,176.9

EBITDA MEUR 32.0 86.5 -63.0% 418.6

EBITA MEUR 14.2 72.5 -80.4% 357.8

EBIT MEUR 3.1 66.7 -95.4% 334.5

EBT MEUR 2.0 70.1 -97.1% 331.6

Financial result MEUR -1.1 3.5 -131.4% -2.8

Net income (including non-controlling interests) MEUR 1.8 50.4 -96.4% 242.2

Cash flow from operating activities MEUR -79.7 37.2 -314.2% 346.5

Capital expenditure MEUR 21.4 19.5 +9.7% 109.1

EBITDA margin % 2.7 7.3 - 8.1

EBITA margin % 1.2 6.1 - 6.9

EBIT margin % 0.3 5.6 - 6.5

Employees (as of end of period; without apprentices) - 23,660 17,063 +38.7% 17,865

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The Schuler Group was consolidated into the consolidated financial statements of the ANDRITZ GROUP as of March 1, 2013; for the reference period of last year, no pro-forma figures are available

* As of March 31, 2013 ** Including Müller Weingarten Group April 1-September 30

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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*: ~1.1 bn. EUR

~5,500 employees* in more than 40 countries

Sales by region*:

Order intake, sales, and EBITDA margin of Schuler Group

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


Germany 36%Europe (without Germany) 19%Asia 29%America 16%

836

1,006

591

818

1,319 1,301

602725

966823

650

959

1,226

586

10.3

6.7

-0.4

4.6

8.8 9.6 9.9

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0

200

400

600

800

1,000

1,200

1,400

2006/07** 2007/08 2008/09 2009/10 2010/11 2011/12 H1 2012/13

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

CAGR order intake: +9% CAGR sales: +11% EBITDA margin: avg. 7.1%

15 Company presentation July 2013

Status on Schuler

Takeover-offer successfully closed in mid-February 2013

Integration teams formed to conduct status quo assessment for relevant company functions within ANDRITZ and Schuler

Based on these results, decisions will be taken about integration and organizational measures, both within Schuler Group and between ANDRITZ and Schuler

First overview about integration measures, costs, and benefits expected by end of summer 2013

Foto

: BM

W A

G/M

artin

Klin

dtw

orth

16

Contents


ANDRITZ GROUP overview and current development

Long-term goals and outlook

4.75.2 5.3 5.1

6.3 6.1 6.1 6.4 6.5

5.1

7.2 7.2 6.9

9371,319 1,110 1,225

1,4811,744

2,7103,283 3,610

3,198

3,554

4,5965,177

0

1,000

2,000

3,000

4,000

5,000

6,000

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EBITA margin (%) Sales (MEUR)

*

0

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

17 Company presentation July 2013

18

HYDROHydropower: solid project activity (however below peak levels of previous years) for modernizations and rehabilitation of hydropower stations to continue due to age of installed base

Pumps: satisfactory investment activity

PULP & PAPERPulp: good project activity for modernizations/upgrades; solid pipeline of greenfield mills ‒ however, stiff price competition expected for these large-scale projects

Power/biomass boiler and biomass pelleting: favorable investment activity

Paper and board: selective investments, mainly in Asia; good project activity for tissue and container board

OutlookHYDRO, PULP & PAPER, METALS

METALSMetal forming: signs of slowing demand in the automobile sector, however solid investment activity in emerging markets

Stainless steel: unchanged very low project activity in the stainless steel industry due to ongoing overcapacities and related limited capex

Carbon steel: slight increase in project activity noted ‒ still uncertain if this is sustained or not


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SEPARATIONMunicipalities: solid investment activity to continue

Mining and minerals: low demand for equipment due to volatility of metal prices and economic slowdown ‒ in some regions several project delays/cancellations

Food and chemical: satisfactory project activity

Animal feed: good project activity in conventional and special feed

OutlookSEPARATION and ANDRITZ GROUP

Macroeconomic conditions and expectations for the GroupMacroeconomic environment: no major change expected for the remainder of 2013

Group sales: increase compared to 2012, mainly due to consolidation of Schuler

Group net income: expected to decrease compared to 2012 due to earnings decline in PULP & PAPER and scheduled amortization of intangible assets related to acquisition of Schuler


20

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.

All figures according to IFRS.

Due to the utilization of automatic calculation programs, differences can arise in the addition of rounded totals and percentages.

MEUR = million euros.

Disclaimer


Documents

The ANDRITZ GROUPatl.g.andritz.com/c/com2011/00/02/53/25397/1/1/0/...Company presentation July 2013 Recent acquisitions by business area 2011 AE&E Austria 2011 Iggesund Tools 2011