The ANDRITZ GROUP · 2010 Rieter Perfojet 2010 DMT/Biax 2011 AE&E Austria 2011 Iggesund Tools 2011 Asselin-Thibeau PULP & PAPER 1995 Jesma-Matador 2000 UMT 2005 Chemes Strojarne FEED

Company presentation November 2011The ANDRITZ GROUP

2 Company presentation November 20112

Contents

ANDRITZ GROUP: overview

Targets andoutlook

Results for Q3 2011


Systems for the production of animal feedand biomass pellets (wood, straw, etc.)

Systems for mechanical and thermal solid/liquid separation for municipalities and various industries

Systems for the production and processing of stainless steel and carbon steel strips

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

Electromechanical equipment for hydropower plants (mainly turbines and generators); pumps

~ 5%*~ 10%*~ 10%*~ 30-35%*~ 40-45%*

FEED &BIOFUEL

SEPARATION**METALSPULP &PAPERHYDRO

* Long-term average share of the Group’s total order intake** The ENVIRONMENT & PROCESS business area was renamed SEPARATION as of October 1, 2011

Company profileA world market leader in most business areas


Compound Annual Growth Rate (CAGR)

of Group sales 2001-2010: +12% p.a.

(thereof approximately half organic growth)

Sales (MEUR)

Strengthening of the market positionGrowth through organic expansion and acquisitions

3,198

3,610

3,283

2,710

1,7441,481

1,2251,1101,319

3,554

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Order intake (MEUR)

1990 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 Asselin-Thibeau

PULP & PAPER

1995 Jesma-Matador2000 UMT2005 Chemes Strojarne

FEED & BIOFUEL

2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm (33.3%)2010 Ritz

HYDRO

1992 TCW Engineering1996 Guinard2002 3SYS2004 Bird Machine2004 NETZSCH Filtration2004 Fluid Bed Systems of

VA TECH WABAG2005 Lenser Filtration2006 CONTEC Decanter2009 Delkor Capital Equipment2009 Frautech2010 KMPT

SEPARATION

1997 Sundwig1998 Thermtec2000 Kohler2002 SELAS SAS Furnace Div.2004 Kaiser2005 Lynson2008 Maerz

METALS


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1-Q3 11

77 103 55220

384 366 247409

678

1,3301,177

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1-Q32011

Net liquidity as of end of period (MEUR)

Strong net cash positionStable development despite acquisitions

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

IggesundTools

DMT/Biax

RieterPerfojet

PrecisionMachine

KMPT

Ritz

Hammer-fest(33.3%)

* 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


AE&E added important technologies

Business area:PULP & PAPER

Employees:325

Annual sales:~ 250-300 MEUR

Products:Boilers Biomass RDF sludge Circulating fluidized bed

technology

Flue gas cleaning Thermal power business

Service ▲ Bubbling fluidized bed boiler, M-real Hallein AG, Austria


Business area:PULP & PAPER (Service)

Products and services:Knife systems for pulp wood chipping and saw mills

Synergy:Multiplies ANDRITZ’sexisting knife sales to the pulp industry

Employees:160

Annual sales:25 MEUR

ANDRITZ Iggesund Tools strengthens

▲ TurnKnife system by ANDRITZ Iggesund Tools

and complements PULP & PAPER’s wood processing area


Business area:PULP & PAPER (Service)

Products and services:Systems for drylaid nonwoven production, mainly for textile and hygiene applications

Synergy:With the existing nonwoven expertise of ANDRITZ Küsters and ANDRITZ Perfojet, ANDRITZ is able to supply complete vertical system solutions for production of nonwovens

Employees:200

Annual sales:40 MEUR

ANDRITZ Asselin-Thibeau strengthensnonwoven product portfolio

▲ Filtration line of ANDRITZ Asselin-Thibeau


Contents


Targets andoutlook

Results for Q3 2011


Summary of key developments

Balance sheet

Q1-Q3 2011Q3 2011

1,330 MEUR, +13% vs. 31. 12. 2010Net liquidity: continuing high cash position

-630 MEUR, +13% vs. 31. 12. 2010

19.5% (31. 12. 2010: 19.7%)

90 MEUR, +34% yoy 7.7% (Q3 2010: 7.5%)

1,173 MEUR,+31% yoy

7,325 MEUR,+34% vs. 30. 09. 2010

1,254 MEUR,+35% yoy

221 MEUR, +34% yoy 7.0% (Q1-Q3 2010: 6.7%)

3,184 MEUR,+30% yoy

+38% vs. 31. 12. 2010

4,899 MEUR,+51% yoy

Equity ratio: stable

EBITA and margin: improvements mainly in HYDRO and PULP & PAPER EBITA: EBITA margin:

Net working capital: unchanged at solid level

Sales: strong increase in Q3 2011due to PULP & PAPER

Order backlog: substantial increase in HYDRO,PULP & PAPER, and SEPARATION

Order intake: strong rise in Q3 2011mainly due to HYDRO


Q1:924

Q1:732

Q2:830

Q2:1,087

Q3:897

Q3:1,173

Strong sales increase in Q3 2011Mainly driven by PULP & PAPER

Group sales (MEUR)Q1-Q3 2010 Q1-Q3 2011

2,459

3,184 3,184

Q1-Q3 2011

+26%

HYDRO: 1,223 (+12%)

PULP & PAPER: 1,273 (+66%)

METALS: 263 (+7%)

SEPARATION: 317 (+29%)FEED & BIOFUEL: 108 (-4%)

Sales of the business areas Q1-Q3 2011 in MEUR (+/- vs. Q1-Q3 2010):

+30%

+31%

+31%


Q1:908

Q1:1,666

Q2:1,979

Q2:1,395

Q3:1,254

Q3:932

High order intake in Q3 2011Strong increase in HYDRO

Group order intake (MEUR)Q1-Q3 2010 Q1-Q3 2011

3,236

4,899 4,899

Q1-Q3 2011

+83%

HYDRO: 1,813 (+18%)

PULP & PAPER: 2,351 (+119%)

METALS: 254 (+29%)

SEPARATION: 374 (+20%)FEED & BIOFUEL: 108 (-3%)

Order intake of the business areasQ1-Q3 2011 in MEUR (+/- vs. Q1-Q3 2010):

+51%

+42%

+35%


Q1-Q3 2011: Strong rise of order intake driven bysome large orders in HYDRO and PULP & PAPER

1.1901.378

1.0761.291

52 106252 320

351

435

1.060

14859

54

95831328

145

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

Q1-Q32010

Q1-Q32011

HY PP ME SE FB

█ Orders > 100 MEUR █ Orders > 100 MEUR █ Orders > 10 MEUR █ Orders > 5 MEUR █ Orders > 3 MEURBelo MonteMica

Ilisu

1,541

1,813

1,076

2,351

197 254 311374

111 108

EldoradoMontes d. P.

Order intake Q1-Q3 2010 vs. Q1-Q3 2011 in MEUR


Order intake and sales by regionWell balanced geographical exposure


3.3973.843

4.277 4.435

5.478 5.291

7.325

Order backlogSolid workload in all business areas

Group order backlog as of end of period (MEUR)

Sept. 30, 2011 vs.

Sept. 30, 2010: +34%

2006 2007 2008 2009 Sept. 30, 2010

2010 Sept. 30,2011

+38%

Order backlog of the business areasas of Sept. 30, 2011 vs. Sept. 30, 2010:

HYDRO: +13%

PULP & PAPER: +121%

METALS: -3%SEPARATION: +14%FEED & BIOFUEL: -13%


EBITA (MEUR)

Q1: 43.7 Q1: 56.1

Q2: 54.2Q2: 75.5

Q3: 67.0

Q3: 89.8

Q1-Q3 2010 Q1-Q3 2011

164.9

221.4EBITA margin (%)

6.77.5 7.0

7.7

Q1-Q3 2010 Q3 2010 Q1-Q3 2011 Q3 2011

+28%

+39%

Q3 2011 EBITA, at 89.8 MEUR (+34% vs. Q3 2010: 67.0 MEUR), rose slightly more than sales, mainly driven by

increases in HYDRO, PULP & PAPER, and SEPARATION EBITA margin amounted to 7.7% (Q3 2010: 7.5%)

Q1-Q3 2011 EBITA significantly increased to 221.4 MEUR (+34% vs. Q1-Q3 2010: 164.9 MEUR) EBITA margin improved to 7.0% (Q1-Q3 2010: 6.7%)

Increase in EBITA, margin improved

+34%

+34%


Results Q3 2011/Q1-Q3 2011 at a glance

+17.0%

-

-

-

+13.6%

-31.2%

+36.0%

+86.8%

+34.4%

+33.0%

+34.3%

+29.3%

+29.5%

+33.7%

+51.4%

+/-

14,267

6.4

6.7

8.2

36.7

494.2

111.6

3.8

160.1

156.3

164.9

202.1

2,458.8

5,477.6

3,235.8

Q1-Q3 2010

16,692

6.5

7.0

8.2

41.7

339.9

151.8

7.1

215.1

207.9

221.4

261.3

3,184.2

7,325.0

4,898.6

Q1-Q3 2011

16,692

7.2

7.7

8.9

18.2

133.1

62.1

3.1

88.0

84.8

89.8

104.3

1,173.1

7,325.0

1,254.1

Q3 2011

14,267

7.1

7.5

8.8

14.5

155.3

44.3

0.2

63.7

63.5

67.0

78.9

896.6

5,477.6

932.1

Q3 2010

+17.0%

-

-

-

+25.5%

-14.3%

+40.2%

+1,450%

+38.1%

+33.5%

+34.0%

+32.2%

+30.8%

+33.7%

+34.5%

+/-

7.2%EBITA margin

257.6MEUREBITA

14,655

6.9

8.6

68.8

704.5

177.0

2.4

247.9

245.5

307.3

3,553.8

5,290.9

4,131.9

2010

-Employees (as of end of period)

%

%

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBT

EBIT margin

EBITDA margin

Capital expenditure

Cash flow from operating activities

Net income (including non-controlling interests)

Financial result

EBIT

EBITDA

Sales

Order backlog (as of end of period)

Order intake


HYDROFavorable business development

Market – unchanged solid market environment: High project activity for modernizations/upgrades of existing hydropower stations and pumped storage

power stations in Europe and North America. Good investment activity in emerging countries of South America and Asia.

Order intake in Q3 2011 significantly up due to booking of Belo Monte order.

Favorable development of sales, earnings, and margins.

+19.5%-

+20.6%-

+25.5%+9.7%

+13.4%+82.8%

+/-

6,1477.1

27.28.4

32.1381.0

3,509.5391.4

Q3 2010

7,3437.8

32.89.6

40.3417.9

3,978.8715.6

Q3 2011

+19.5%-

+25.6%-

+24.3%+12.4%+13.4%+17.6%

+/-

6,1476.8

73.98.3

90.51,087.73,509.51,541.4

Q1-Q3 2010

7,3437.6

92.89.2

112.51,223.03,978.81,812.7

Q1-Q3 2011

8.9%EBITDA margin

6,5307.5

118.0

139.91,579.23,376.01,870.1

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA

EBITDASalesOrder backlog (as of end of period)

Order intake


PULP & PAPERGood development of sales, earnings, and profitability

Market – solid project and investment activity: Satisfactory project activity for modernizations and capacity increases. Good market environment for biomass/recovery boilers. Next order awards for greenfield pulp mills expected for 2012/2013

Order intake in Q3 2011 slightly down compared to last year’s reference period.

Favorable business development with slight margin improvement.

+21.8%-

+76.3%-

+60.5%+70.8%

+121.3%-4.5%

+/-

4,8497.3

21.18.9

25.6288.4

1,124.9327.2

Q3 2010

5,9057.6

37.28.3

41.1492.6

2,489.0312.6

Q3 2011

+21.8%-

+68.5%-

+52.4%+65.8%

+121.3%+118.5%

+/-

4,8496.6

50.58.3

63.9767.7

1,124.91,075.9

Q1-Q3 2010

5,9056.7

85.17.7

97.41,273.12,489.02,350.5

Q1-Q3 2011

8.9%EBITDA margin

4,8517.3

80.7

98.41,105.31,099.61,388.4

2010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


METALSContinuing moderate project activity

Market – continued moderate project activity: Low project activity in Europe and North America. Solid investment activity in emerging markets of Asia and South America.

Order intake in Q3 2011 higher compared to relatively low level of Q3 2010.

Despite sales increase, earnings down mainly due to order mix.

-1.7%-

-5.4%-

-7.8%+20.3%

-2.8%+28.3%

+/-

9686.75.67.66.4

84.2524.755.1

Q3 2010

9525.25.35.85.9

101.3510.270.7

Q3 2011

-1.7%-

-5.8%-

-9.2%+6.9%-2.8%

+29.0%+/-

9684.9

12.05.8

14.2246.3524.7196.7

Q1-Q3 2010

9524.3

11.34.9

12.9263.4510.2253.8

Q1-Q3 2011

6.2%EBITDA margin

9375.4

18.4

21.2340.2521.0302.72010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


SEPARATIONSatisfactory business development

Market – unchanged good market conditions: Satisfactory project activity for municipal sludge dewatering plants and industrial process applications. Increasing investment activity for municipal sludge drying plants and industrial drying plants.

Order intake in Q3 2011 slightly down compared to Q3 2010.

Sales and earnings further up, profitability at good level.

+9.0%-

+27.6%-

+23.0%+23.0%+14.0%

-6.3%+/-

1,7779.79.8

11.211.3

101.1259.7129.0

Q3 2010

1,93710.012.511.213.9

124.4296.0120.9

Q3 2011

+9.0%-

+26.2%-

+23.7%+29.2%+14.0%+20.2%

+/-

1,7778.4

20.610.024.5

245.6259.7310.9

Q1-Q3 2010

1,9378.2

26.09.6

30.3317.2296.0373.7

Q1-Q3 2011

9.3%EBITDA margin

1,8167.9

29.5

34.8375.4242.3424.32010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


FEED & BIOFUELGood market environment

Market – good investment activity for both feed and biomass equipment: Satisfactory project activity in the animal feed sector. Continued good project activity for biomass/wood pelleting equipment; rising number of projects for

straw pelleting.

Order intake in Q3 2011 up compared to reference level of last year.

Sales, earnings, and profitability decreased.

+5.5%-

-39.4%-

-16.2%-11.9%-13.3%+16.7%

+/-

5267.93.38.83.7

41.958.829.4

Q3 2010

5555.42.08.43.1

36.951.034.3

Q3 2011

+5.5%-

-21.5%-

-10.9%-3.6%

-13.3%-2.7%

+/-

5267.17.98.39.2

111.558.8

110.9Q1-Q3 2010

5555.86.27.68.2

107.551.0

107.9Q1-Q3 2011

8.5%EBITDA margin

5227.2

11.0

13.0153.752.0

146.42010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

EBITA marginEBITA


Order intake


Contents


Targets andoutlook

Results for Q3 2011


9371.319

1.110 1.2251.481

1.744

2.710

3.2833.610

3.1983.554

> 4,500

> 4,000

2.012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 2011E 2012E

Target to reach more than 4.5 bn. EUR sales in 2012, supported by receipt of some large orders in 2011 (especially Montes del Plata) as well as sales contributions from companies acquired in 2010 and 2011; however, achievement of goals might be negatively impacted by severe macroeconomic slowdown.

Due to extremely high order intake expected for 2011 and given the prevailing uncertainties with regard to the global economy, company growth rates for 2013 and 2014 might be lower than in recent past; however:

Confirmation of goal to increase sales long-term by 10% p.a. on average.

due to high order intake 2011Over 4.5 bn. EUR sales targeted for 2012

Sales of the ANDRITZ GROUP (MEUR)


2010 et seq.: 7.0% over the cycle

Update on Group EBITA margin goal 7.0% over the cycle

7.2

5.1

6.56.46.16.16.3

5.15.35.24.7

7.0

937

3,184

> 4,500

3,198

3,6103,2832,710

1,7441,481

1,2251,1101,319

3,554> 4,000

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 Q1-Q32011

2011E 2012E0

1.000

2.000

3.000

4.000

5.000

6.000

EBITA margin (%) Sales (MEUR)

*

* Including restructuring expenses

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


Update on dividend goalSustainable dividend payout ratio on top of strong sales growth

Confirmation of dividend goals: Keep payout ratio at least at 50% Mid-term increase to ~ 60%

48.9%52.9%40.3%38.3%

32.5%32.6%34.3%44.2%44.1%

2002 2003 2004 2005 2006 2007 2008 2009 2010

1.00 1.101.000.75

0.500.350.250.23

1.70

2002 2003 2004 2005 2006 2007 2008 2009 2010

Dividend per share (EUR)

Payout ratio


Outlook

HYDRO: Unchanged good market environment with solid project activity for both modernizations/upgrades and new hydropower plants; continuing low market activity in China.

PULP & PAPER: Solid market environment and project activity for modernizations/upgrades of existing plants as well as for biomass/power boilers; continuing pipeline of greenfield pulp mills with next order awards expected for 2012/2013.

METALS: Weak market environment and moderate project activity in Europe and North America to continue; reasonable investment activity for selective projects in the emerging markets.

SEPARATION: Good market and project activity for solid/liquid separation equipment in the municipal and industrial segments.

FEED & BIOFUEL: Solid market and project activity for feed and biomass pelleting equipment.

Expectations for the business areas

Unchanged sales and earnings outlook for 2011: Sales expected to increase to over 4.0 bn. EUR, net income to rise compared to 2010.

Short-term uncertainties with regard to further development of global economy and/or China; however, long-term market drivers still in place to support long-term company growth.

Expectations for the Group


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 would be required to do so under applicable law.

According to IFRS.

Disclaimer

Documents

The ANDRITZ GROUP · 2010 Rieter Perfojet 2010 DMT/Biax 2011 AE&E Austria 2011 Iggesund Tools 2011 Asselin-Thibeau PULP & PAPER 1995 Jesma-Matador 2000 UMT 2005 Chemes Strojarne FEED