3. KEY FINANCIAL FIGURES 2014
* MEUR = million euro
The ANDRITZ GROUP
Overview
Unit 2014
Order intake MEUR* 6,101.0
Order backlog (as of end of period) MEUR 7,510.6
Sales MEUR 5,859.3
EBITA MEUR 379.5
Net income (including non-controlling interests) MEUR 210.0
Employees (as of end of period; without apprentices) - 24,853
Profile: globally leading supplier of plants, equipment, and services for hydropower stations, the pulp and paper industry, the metal-
working and steel industries, and solid/liquid separation in the municipal and industrial sectors
Headquarters: Graz, Austria
Global presence: over 250 production sites and service/sales companies worldwide
3 Company presentation April 2015
4. Product offerings: equipment for production
of all types of pulp, paper, tissue, and board;
energy boilers
Order intake 2014: 1,996 MEUR
Sales 2014: 1,969 MEUR
Share of ANDRITZ GROUP’s total order intake: 30-35%
Worldwide leading position in four business areas
HYDRO and PULP & PAPER …
Product offerings: electromechanical equipment for
hydropower plants (turbines, generators); pumps;
turbo generators
Order intake 2014: 1,817 MEUR
Sales 2014: 1,752 MEUR
Share of ANDRITZ GROUP’s total order intake: 30-35%
4 Company presentation April 2015
5. Product offerings: equipment for solid/liquid separation
for municipalities and various industries; equipment
for production of animal feed and biomass pellets
Order intake 2014: 596 MEUR
Sales 2014: 587 MEUR
Share of ANDRITZ GROUP’s total order intake: 10%
Product offerings: presses for metalforming (Schuler);
systems for production of stainless steel, carbon steel,
and non-ferrous metal strip; industrial furnace plants
Order intake 2014: 1,693 MEUR
Sales 2014: 1,550 MEUR
Share of ANDRITZ GROUP’s total order intake: 25%
… METALS and SEPARATION
5 Company presentation April 2015
6. 1,744
2,710
3,283
3,610
3,198
3,554
4,596
5,177
5,711
5,859
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Compound Annual Growth Rate (CAGR) of Group sales 2005-2014:
+14% p. a. (thereof approximately half organic growth)
Strengthening of market position
Growth through organic expansion and acquisitions
Recent acquisitions by business area since 1990
2011 Iggesund Tools
2011 Tristar Industries
2011 Asselin-Thibeau
2012 AES
2013 MeWa
METALS
1997 Sundwig
1998 Thermtec
2000 Kohler
2002 SELAS SAS Furnace Div.
2004 Kaiser
2005 Lynson
2008 Maerz
2012 Bricmont
2012 Soutec
2013 Schuler (> 95%)
2013 FBB Engineering
2014 Herr-Voss Stamco
SEPARATION
1992 TCW Engineering
1995 Jesma-Matador
1996 Guinard
2000 UMT
2002 3SYS
2004 Bird Machine
2004 NETZSCH Filtration
2004 Fluid Bed Systems
2005 Lenser Filtration
2006 CONTEC Decanter
2009 Delkor Capital Equipment
2009 Frautech
2010 KMPT
2012 Gouda
2013 Shende Machinery
HYDRO
2006 VA TECH HYDRO
2007 Tigép
2008 GE Hydro business
2008 GEHI (JV)
2010 Precision Machine
2010 Hammerfest Strøm (59%)
2010 Ritz
2011 Hemicycle Controls
PULP & PAPER
1990 Sprout-Bauer
1992 Durametal
1994 Kone Wood
1998 Kvaerner Hymac
1999 Winberg
2000 Ahlstrom Machinery
2000 Lamb Baling Line
2000 Voith Andritz Tissue LLC (JV)
2002 ABB Drying
2003 IDEAS Simulation
2003 Acutest Oy
2003 Fiedler
2004 EMS (JV)
2005 Cybermetrics
2005 Universal Dynamics Group
2006 Küsters
2006 Carbona
2006 Pilão
2007 Bachofen + Meier
2007 Sindus
2008 Kufferath
2009 Rollteck
2010 Rieter Perfojet
2010 DMT/Biax
2011 AE&E Austria
6 Company presentation April 2015
8. Financial highlights 2014
Order intake, sales, and order
backlog reach record highs
Order intake
6.1 bn. EUR
Sales
5.9 bn. EUR
Order backlog
7.5 bn. EUR
Earnings and margins substantially
improved compared to very low levels of 2013
Strong development of cash flow
and net cash position
Solid level of net working capital
Dividend proposal of 1.00 EUR/share
Company presentation April 20158
9. SALES by region 2014 vs. 2013 (%)
SALES by business area 2014 vs. 2013 (MEUR)GROUP SALES (MEUR)
* Schuler portion
The Schuler Group was consolidated into the consolidated
financial statements of ANDRITZ as of March 1, 2013
Group sales
Slight increase due to Schuler
967* 1,178*
5,711
5,859
2014 2013 +/-
HYDRO 1,752 1,805 -3%
PULP & PAPER 1,969 2,005 -2%
METALS 1,551 1,311 +18%
SEPARATION 587 590 +/-0%
+3%
(-1% ex Schuler)
5,859
MEUR
2014 2013
Europe 41 43
North America 16 16
South America 15 13
China 13 13
Asia (ex China) 11 11
Others* 4 4
Project-related lower
sales generation in
HYDRO and PULP &
PAPER
+8% ex Schuler
Emerging
markets: 43%
Europe & North
America: 57%
Well-balanced geographical
exposure in sales …
2013 2014 * Africa and Australia
Company presentation April 20159
10. ORDER INTAKE by region 2014 vs. 2013 (%)
ORDER INTAKE by business area 2014 vs. 2013 (MEUR)GROUP ORDER INTAKE (MEUR)
* Schuler portion
The Schuler Group was consolidated into the consolidated
financial statements of ANDRITZ as of March 1, 2013
Group order intake significantly increased
PULP & PAPER and METALS favorably up
868*
1,194*
5,611
6,101
+9%
(+3% ex Schuler)
* Africa and Australia
Also +37% ex Schuler
2014 2013 +/-
HYDRO 1,817 1,865 -3%
PULP & PAPER 1,996 1,908 +5%
METALS 1,693 1,234 +37%
SEPARATION 596 604 -1%
2014 2013
Europe 37 41
North America 18 18
South America 14 12
China 12 11
Asia (ex China) 12 14
Others* 7 4
6,101
MEUR
Emerging
markets: 45%
Europe & North
America: 55%
… and in order intake
2013 2014
Company presentation April 201510
11. ORDER BACKLOG by business area 2014 (%)
ORDER BACKLOG by business area 2014 vs. 2013 (as of end of period; MEUR)GROUP ORDER BACKLOG
(as of end of period in MEUR) * Schuler portion
The Schuler Group was consolidated into the consolidated
financial statements of ANDRITZ as of March 1, 2013
1,040* 1,058*
7,389 7,511
+2%
(+2% ex Schuler)
Order backlog at record high, mainly driven by METALS
7,511
MEUR
2014 2013 +/-
HYDRO 3,709 3,722 +/-0%
PULP & PAPER 1,875 1,886 -1%
METALS 1,566 1,428 +10%
SEPARATION 361 353 +2%
+31% ex Schuler
2013 2014
HYDRO 49
PULP & PAPER 25
METALS 21
SEPARATION 5
HYDRO and
PULP & PAPER
account for ~75%
of total backlog
Company presentation April 201511
12. EBITA (MEUR) EBITA MARGIN (%)
The Schuler Group was consolidated into the consolidated financial statements of ANDRITZ
as of March 1, 2013
164.1
379.5
+131%
Strong increase in earnings and profitability
compared to very low levels of 2013
2013 2014
2013:
2.9%
2014:
6.5%
Increase of EBITA and EBITA margin driven by strong
earnings improvements of PULP & PAPER, SEPARATION,
and METALS; unchanged good profitability of HYDRO
Company presentation April 201512
13. Unit 2014 2013 +/-
Order intake MEUR 6,101.0 5,611.0 +8.7%
Order backlog (as of end of period) MEUR 7,510.6 7,388.5 +1.7%
Sales MEUR 5,859.3 5,710.8 +2.6%
EBITDA MEUR 472.0 255.2 +85.0%
EBITA MEUR 379.5 164.1 +131.3%
EBIT MEUR 295.7 89.8 +229.3%
EBT MEUR 299.4 80.3 +272.9%
Financial result MEUR 3.7 -9.5 +138.9%
Net income (including non-controlling interests) MEUR 210.0 53.2 +294.7%
Cash flow from operating activities MEUR 342.1 93.7 +265.1%
Capital expenditure MEUR 106.5 111.4 -4.4%
Equity ratio % 17.0 16.7 -
Liquidity MEUR 1,701.6 1,517.0 +12.2%
Net liquidity (after deduction of all financial liabilities) MEUR 1,065.1 893.1 +19.3%
Net working capital MEUR -570.9 -539.4 -5.8%
EBITDA margin % 8.1 4.5 -
EBITA margin % 6.5 2.9 -
EBIT margin % 5.0 1.6 -
Employees (as of end of period; without apprentices) - 24,853 23,713 +4.8%
Key figures 2014 at a glance
The Schuler Group was consolidated into the consolidated financial statements of ANDRITZ as of March 1, 2013
Increase in net
liquidity driven by
strong cash flow
generation and
project-related
customer
advances
Unchanged solid
level of net
working capital
Company presentation April 201513
14. HYDRO (1)
Reasonable project activity, but far below peak level of 2011
MODERNIZATIONS/REHABILITATIONS
Solid project activity in Europe and North
America, although below peak years
NEW HYDROPOWER PLANTS
Some projects in emerging markets in
implementation or planning phase
(particularly in South America and Africa)
COMPETITION
Stable competition at challenging level
PUMPS
Solid project activity
The consortium GE/ANDRITZ HYDRO is appointed preferred bidder for the supply of the electromechanical
equipment for the world’s first tidal lagoon hydropower project in Swansea Bay, Wales. The hydropower plant
will have a total capacity of 320 megawatts.
Photo:TidalLagoonSwanseaBayplc.
Company presentation April 201514
15. Unit 2014 2013 +/-
Order intake MEUR 1,816.7 1,865.4 -2.6%
Order backlog (as of end of period) MEUR 3,708.6 3,722.4 -0.4%
Sales MEUR 1,752.3 1,804.8 -2.9%
EBITDA MEUR 177.2 176.8 +0.2%
EBITDA margin % 10.1 9.8 -
EBITA MEUR 144.8 146.9 -1.4%
EBITA margin % 8.3 8.1 -
Employees (as of end of period; without apprentices) - 8,339 7,445 +12.0%
HYDRO (2)
Satisfactory business development
Slight project-related
decline in sales
Earnings and margin
at unchanged
satisfactory levels
Order intake in
line with
expectations
Increase of
employees related to
projects in South
America and Turkey
Company presentation April 201515
16. PULP & PAPER (1)
Good investment and project activity
MODERNIZATIONS/GREENFIELD
Good project and investment activity for
modernizations/refurbishments and for
new greenfield pulp mills
BIOMASS/RECOVERY BOILERS
Good investment activity
COMPETITION
Unchanged challenging price competition
TISSUE
Solid demand, especially in China
Photo:MetsäFibreOy
ANDRITZ has signed a letter of intent with Metsä Fibre to deliver key production technologies for a new bio-
product pulp mill in Finland.
Company presentation April 201516
17. PULP & PAPER (2)
Strong improvement in earnings and profitability
Favorable order intake
of almost 2 billion euros
Slight project-related
decline in sales
Earnings and margin
recovered compared to
low level in 2013; good
profitability development in
service, capital still
impacted by execution of
some lower margin orders
Unit 2014 2013 +/-
Order intake MEUR 1,995.7 1,907.7 +4.6%
Order backlog (as of end of period) MEUR 1,875.4 1,885.6 -0.5%
Sales MEUR 1,969.3 2,005.3 -1.8%
EBITDA MEUR 127.6 -11.5 +1,209.6%
EBITDA margin % 6.5 -0.6 -
EBITA MEUR 102.9 -35.7 +388.2%
EBITA margin % 5.2 -1.8 -
Employees (as of end of period; without apprentices) - 7,236 7,136 +1.4%
Company presentation April 201517
18. METALS (1): good investment activity
in metal forming and for aluminum equipment
METALFORMING
Good project activity, especially in China;
satisfactory level in Europe
STAINLESS STEEL
Unchanged low project activity, however some
selective investments in emerging markets
COMPETITION
Stable competition at challenging level
ALUMINUM
Very good project activity
One of the largest orders in Schuler’s 175-year history was received from FAW Volkswagen
Automotive, China. The order comprises three press lines with ServoDirect technology. The servo-
press lines are used mainly to produce car body parts, such as hoods or doors.
Company presentation April 201518
19. METALS (2)
Favorable business development
Order intake favorably
up due to the metal-
forming (Schuler) and
aluminum equipment
Sales increase mainly
due to Schuler (ex
Schuler: +8.0%)
Satisfactory earnings and
margin development
compared to 2013, which
was impacted by
restructuring provisions
by Schuler; EBITA 2014
positively influenced by
release of provision
overhang 2014
The Schuler Group was consolidated into the consolidated financial statements of ANDRITZ as of March 1, 2013
Unit 2014 2013 +/-
Order intake MEUR 1,692.8 1,233.8 +37.2%
Order backlog (as of end of period) MEUR 1,566.1 1,427.6 +9.7%
Sales MEUR 1,550.4 1,311.0 +18.3%
EBITDA MEUR 134.0 76.6 +74.9%
EBITDA margin % 8.6 5.8 -
EBITA MEUR 110.2 53.5 +106.0%
EBITA margin % 7.1 4.1 -
Employees (as of end of period; without apprentices) - 6,432 6,300 +2.1%
Company presentation April 201519
20. ENVIRONMENT AND FOOD
Solid investment activity
SEPARATION (1)
MINING AND MINERALS
Unchanged low project activity
FEED AND BIOMASS PELLETING
Good project activity
CHEMICALS
Solid project activity
For the waste water treatment plant, industrial effluent treatment plant, and food application segments,
ANDRITZ launched a new sludge dewatering machine: the ANDRITZ C-Press is a screw press providing
high performance and combining compact design with low operating costs.
Company presentation April 201520
21. SEPARATION (2)
Order intake and sales stabilized, earnings improved
Order intake and sales
practically unchanged
compared to 2013
Earnings and margin back
on track compared to low
level in 2013 (additional
costs related to launch of
new products in China)
Unit 2014 2013 +/-
Order intake MEUR 595.8 604.1 -1.4%
Order backlog (as of end of period) MEUR 360.5 352.9 +2.2%
Sales MEUR 587.3 589.7 -0.4%
EBITDA MEUR 33.2 13.3 +149.6%
EBITDA margin % 5.7 2.3 -
EBITA MEUR 21.6 -0.6 +3,700.0%
EBITA margin % 3.7 -0.1 -
Employees (as of end of period; without apprentices) - 2,846 2,832 +0.5%
Company presentation April 201521
22. 3. Long-term goals and outlook
1. ANDRITZ GROUP overview
2. Results 2014
23. * Including restructuring expenses ** Including Schuler as of March 1, 2013; no pro forma figures are available for the reference periods of previous years
Target to continue long-term profitable growth
Goal: maintain 7% and improve to 8% with top-line sales growth
23
%
MEUR
Long term:
maintain 7%
and improve to
8% with top-line
sales growth
Average
2005-2009:
6.0%Average
2000-2004:
5.3%
5.7
Company presentation April 2015
24. Outlook for 2015
Investment activity to remain at current satisfactory levels
HYDRO
Good project activity for modernizations and new hydropower stations to
continue; satisfactory market activity for pumps to continue
PULP & PAPER
Solid project activity for modernizations/capacity increases and power/
biomass boilers; good pipeline for green-/brownfield pulp mill projects
METALS
Global metalforming market to stay at good level; steel at unchanged
subdued level; good market activity in aluminum to continue
SEPARATION
Low project activity in mining to remain; solid project activity in chemicals;
good investment activity in environment, food, and feed/biomass pelleting
stable +/-
stable +
stable +
stable +
ANDRITZ GROUP 2015
Slight increase in sales
and improvement of
earnings expected
Company presentation April 201524
26. ANDRITZ GROUP
Sales, order intake, EBITA, and EBITA margin 2010-2014
Sales (in MEUR): CAGR +13%
26
Order intake (in MEUR): CAGR +10%
EBITA (in MEUR)
EBITA margin (in %)
Average
4,979
MEUR
Average
5,295
MEUR
Average
298
MEUR
Average
6.1%
27. HYDRO
Sales, order intake, EBITA, and EBITA margin 2010-2014
Sales (in MEUR): CAGR +3%
27
Order intake (in MEUR): CAGR -1%
EBITA (in MEUR)
EBITA margin (in %)
Average
1,749
MEUR
Average
1,931
MEUR
Average
142
MEUR
Average
8.1%
28. Average
4.6%
PULP & PAPER
Sales, order intake, EBITA, and EBITA margin 2010-2014
Sales (in MEUR): CAGR +15%
28
Order intake (in MEUR): CAGR +9%
EBITA (in MEUR)
EBITA margin (in %)
2013
2013
Average
1,854
MEUR
Average
1,995
MEUR
Average
81
MEUR
29. METALS
Sales, order intake, EBITA, and EBITA margin 2010-2014
Sales (in MEUR): CAGR +46%*
29
Order intake (in MEUR): CAGR +54%*
EBITA (in MEUR)
EBITA margin (in %)
* +2% ex Schuler
* +13% ex Schuler
Average
ex Schuler:
367
MEUR
Schuler:967Schuler:
868
39.7*
* Schuler: 4.1% (8.4% before restructuring expenses)
Average
ex Schuler:
362
MEUR
Average
ex Schuler:
17.7
MEUR
Average
ex Schuler:
4.8%
Schuler:1,178Schuler:
1,194
* thereof Schuler
98.4*
** Schuler: 8.4%
30. Average
5.2%
SEPARATION
Sales, order intake, EBITA, and EBITA margin 2010-2014
Sales (in MEUR): CAGR +4%
30
Order intake (in MEUR): CAGR +2%
EBITA (in MEUR)
EBITA margin (in %)
Average
580
MEUR
Average
594
MEUR
Average
30
MEUR
