The ANDRITZ GROUP · 9 Company presentation November 2010 ANDRITZ GROUP Q3 2010/Q1-Q3 2010 results at a glance Favorable business development in Q3 2010 Order intake: 932 MEUR in

Company presentation November 2010The ANDRITZ GROUP

2 Company presentation November 2010

Contents

ANDRITZ GROUP: overview

Q1-Q3 2010 results

Targets and outlook


~5% ofGroup’sorder intake.

Systems for production of animal feed and wood/biofuel pellets.

~10% of Group’sorder intake.

Systems for mechanical and thermal solid/liquid separation.

~10% of Group’sorder intake.

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

~30-35% of Group’sorder intake.

Systems for production of all types of pulp and certain paper grades.

~40-45% of Group’sorder intake.

Electro-mechanical equipment for hydro-power plants; pumps.

Company profileA world market leader in most business areas


1,110 1,2251,481

1,744

2,710

3,2833,610

3,198

9371,319

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Compound Annual Growth Rate (CAGR)

of Group sales 2000-2009: +15% p.a.

(thereof +7% p.a. organic growth)

Sales of the ANDRITZ GROUP (MEUR)

Strengthening of the market positionGrowth through organic expansion and acquisitions

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 Pilão2007 Bachofen + Meier2007 Sindus2008 Kufferath2009 Rollteck2010 Rieter Perfojet2010 DMT/Biax

PULP & PAPER

1995 Jesma-Matador2000 UMT2005 Chemes Strojarne

FEED & BIOFUEL

2006 VA TECH HYDRO2007 Tigép2008 GE Hydro business2008 GEHI (JV)2010 Precision Machine2010 Hammerfest Strøm2010 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

ENVIRONMENT & PROCESS

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

METALS


Long-term order intake developmentHYDRO as main growth driver

3,349 MEUR

1,083 MEUR

+209

% HYDRO, ENVIRONMENT & PROCESS,

and METALS with CAGR ≥10% during the last ten years.

Strongest growth came from HYDRO.

2000 2009

2000-2009: + 2,267 MEUR order intake, thereof contribution from . . .

HYDRO: 74%

PULP & PAPER: 8%

METALS: 7%

ENVIRONMENT & PROCESS: 8%FEED & BIOFUEL: 3%

Share of order intakeby business area

7%

11%

12%

68%

2%

2000

+7%4%FEED & BIOFUEL

+11%9%ENVIRONMENT & PROCESS

+10%9%METALS

+3%27%PULP & PAPER

+59%51%HYDRO

CAGR2009

Order intake of the ANDRITZ GROUP:

CAGR order intake ANDRITZ GROUP2000-2009: +13%

2000 2009


Global presenceStrong base in Europe, strong growth in emerging markets

Employees by region 2000 vs. 2009: strong base in Europe

+ ~2

10%

Employees 2000-2009more than tripled

1% 1%

Europe

NorthAmerica

SouthAmerica

China

Asia(excl.

China)

Others

Employees 2000-2009:strongest growth in emerging markets

949 +402000:

2009:

81,191 +1,1832000:

2009:

361,128 +1,0922000:

2009:

3871 +8682000:

2009:

8401,568 +7282000:

2009:

3,3458,242 +4,8972000:

2009:

1%

1%

63%70%

11%

27%7%9%

9%

2000 2009

Europe North America

South America China

Asia (excl. China) Others

Europe andNorth America

Emergingmarkets

~13,000

~4,200

2000 2009


ANDRITZ shareSolid performance and broad research coverage

Relative share price performance of the ANDRITZshare versus the ATX since the IPO

Broad research coverage

Successful 5-years performance

-54%2008

+26%Q1-Q3 2010

+111%2009

+3%2007

+75%2006

+63%2005

IPO of ANDRITZ:June 25, 2001

ANDRITZ

S = Share split of 1:4 on 3 May, 2007

ATX

ANDRITZ:+904%

ATX:+105%

200%

400%

600%

800%

1,000%


Contents

ANDRITZ GROUP:

overview

Q1-Q3 2010 results

Targets and outlook


ANDRITZ GROUP Q3 2010/Q1-Q3 2010 results at a glanceFavorable business development in Q3 2010

Order intake: 932 MEUR in Q3 2010: +11% vs. Q3 2009 3,236 MEUR in Q1-Q3 2010: +27% vs. Q1-Q3 2009

Order backlog: 5,478 MEUR as of September 30, 2010: 21% vs. September 30, 2009; +24% vs. December 31, 2009

Sales: 897 MEUR in Q3 2010: +19% vs. Q3 2009 2,459 MEUR in Q1-Q3 2010: +6% vs. Q1-Q3 2009

EBITA: 67 MEUR EBITA in Q3 2010: +47% vs. Q3 2009 7.5% EBITA margin in Q3 2010 (6.0% in Q3 2009)

165 MEUR EBITA in Q1-Q3 2010: +62% vs. Q1-Q3 2009 6.7% EBITA margin in Q1-Q3 2010 (4.4% in Q1-Q3 2009; 5.4% excluding restructuring expenses)

Net income (excluding non-controlling interests): 47 MEUR in Q3 2010: +75% vs. Q3 2009 115 MEUR in Q1-Q3 2010: +92% vs. Q1-Q3 2009


Q1:790.1

Q1:732.3

Q2:829.9

Q2:784.0

Q3:896.6

Q3:756.1

Sales: strong increase in Q3 2010HYDRO, PULP & PAPER, and ENVIRONMENT & PROCESS as main growth drivers

Group sales (MEUR)Q1-Q3 2009 Q1-Q3 2010

2,330.2 2,458.8 2,458.8

Q1-Q3 2010

HYDRO: +10%

PULP & PAPER: +14%

METALS: -30%ENVIRONMENT & PROCESS: +8%FEED & BIOFUEL: +21%

+/- Q1-Q3 2010 vs. Q1-Q3 2009:

-7%

+6%

2,458.8 MEURQ1-Q3 2010

3,197.5 MEUR2009

77% of sales 2009

+6%

+19%


Q1:981.4

Q1:908.4

Q2:1,395.3Q2:

731.3

Q3:932.1

Q3:842.2

Order intakeSolid development in all business areas except METALS

Group order intake (MEUR)Q1-Q3 2009 Q1-Q3 2010

2,554.9

3,235.8 3,235.8

Q1-Q3 2010

-7%

+91%

HYDRO: +12%

PULP & PAPER: +78%


+/- Q1-Q3 2010 vs. Q1-Q3 2009:

3,235.8 MEURQ1-Q3 2010

3,349.3 MEUR2009

97% of order intake 2009

+11%

+27%


Order intake Q1 2008-Q3 2010

1.196

933

772 805

981

731

842794

908

1.395

932

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010

Favorable development during the economic crisis

Group order intake (MEUR)Average order intake Q1 2008-Q3 2010: 935 MEUR


Order intake and sales by regionWell balanced geographical exposure

Order intake by regionQ1-Q3 2010 (Q1-Q3 2009) in %

Sales by regionQ1-Q3 2010 (Q1-Q3 2009) in %


5,478

4,4354,5154,277

3,8433,397

1,696

Order backlogSolid workload in all business areas

Group order backlog as of end of period (MEUR)

HYDRO: +18%

30. 9. 2010 vs.

30. 9. 2009: +21%

PULP & PAPER: +62%


2005 2006 2007 2008 30. 9. 2009 2009 30. 9. 2010

+/- 30. 9. 2010 vs. 30. 9. 2009:

+24%


EBITA (MEUR)

Q1: 43.7 Q1: 43.7

Q2: 12.8Q2: 54.2Q3: 45.5

Q3: 67.0

Q1-Q3 2009 Q1-Q3 2010

EBITA of the Group in Q3 2010, at 67 MEUR, 47% higher than in Q3 2009 (46 MEUR); thus, increasing significantly stronger than sales.

EBITA margin in Q3 2010 rose to 7.5% (Q3 2009: 6.0%).

In Q1-Q3 2010, EBITA significantly increased to 165 MEUR (Q1-Q3 2009: 102 MEUR; 126 MEUR excluding restructuring expenses). EBITA margin rose to 6.7% (Q1-Q3 2009: 4.4%; 5.4% excluding restructuring expenses).

EarningsEBITA and EBITA margin significantly increased

102.0

164.9

+/-0%

EBITA margin6.7%

4.4%

Q1-Q3 2009 Q1-Q3 2010

+323%

+47%

+62%


Results Q1-Q3 2010Continued strong cash flow generation

+8.3%

-

-

-

-28.6%

+43.6%

+75.7%

-42.4%

+70.9%

+79.4%

+61.7%

+37.8%+5.5%

+21.3%+26.7%

+/-

14,267

7.1

7.5

8.8

14.5

155.3

44.3

0.2

63.7

63.5

67.0

78.9896.6

5,477.6932.1

Q32010

13,176

4.6

6.0

7.6

11.2

226.5

29.0

9.5

44.6

35.1

45.5

57.5756.1

4,514.5842.2

Q32009

13,049

4.6

5.1

6.8

70.5

345.7

102.9

2.6

149.6

147.1

164.1

218.23,197.54,434.53,349.3

2009

+8.3%

-

-

-

+29.5%

-31.4%

+52.8%

-97.9%

+42.8%

+80.9%

+47.3%

+37.2%+18.6%+21.3%+10.7%

+/-

4.46.7%EBITA margin

102.0164.9MEUREBITA

14,267

6.4

8.2

36.7

494.2

111.6

3.8

160.1

156.3

202.12,458.85,477.63,235.8

Q1-Q3 2010

13,176-Employees (as of end of period)

%

%

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

93.7EBT

3.7EBIT margin

6.3EBITDA margin

51.4Capital expenditure

344.1Cash flow from operating activities

63.5Net income (incl. non-controlling interests)

6.6Financial result

87.1EBIT

146.7EBITDA2,330.2Sales4,514.5Order backlog (as of end of period)

2,554.9Order intake

Q1-Q3 2009


Solid balance sheet structure as of September 30, 2010 Substantial increase of cash position, unchanged high negativenet working capitalTotal assets and equity: Total assets increased to 3,768 MEUR (December 31, 2009: 3,309 MEUR).

Equity ratio amounted to 19.4% (December 31, 2009: 20.0%).

Cash position and working capital: Liquid funds amounted to 1,421 MEUR (December 31, 2009: 1,082 MEUR).

Net liquidity increased to 1,002 MEUR (December 31, 2009: 678 MEUR).

Low net working capital of -417 MEUR (-104 MEUR as of December 31, 2009).

Net liquidity as of end of period (MEUR)

45 77 103384 366

247409

678

1,002

55220

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3 2010


HYDROContinuation of favorable development

Market: project activity for hydropower equipment remained high; favorable demand for modernizations and upgrades of installed capacities in Europe and North America, as well as for pumped storage power stations in Europe; good project activity for new hydropower capacities, especially in South America and Asia; positive development of project activity for small-scale hydropower plants, especially in Turkey.

Favorable development of order intake in Q3 2010.

Sales and earnings also up; profitability slightly down compared to the high level of Q3 2009 – however, reaching a solid level.

6,1477.1

27.28.4

31.9381.0

3,509.5391.4

Q32010

5,8947.7

26.19.2

32.1337.0

2,969.2324.0

Q32009

+4.3%-

+4.2%-

+3.5%+13.1%+18.2%+20.8%

+/-

+4.3%-

+16.9%-

+10.6%+10.2%+18.2%+11.8%

+/-

5,9937.3

100.58.8

120.91,378.02,894.51,693.9

2009

8.38.3%EBITDA margin

6,1476.8

73.9

90.51,087.73,509.51,541.4

Q1-Q32010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit

6.4EBITA margin63.2EBITA

81.8EBITDA987.4Sales

2,969.2Order backlog (as of end of period)

1,378.5Order intake

Q1-Q32009


Market: good project activity for pulp and paper equipment worldwide – especially for modernizations and capacity increases in Europe and North America – due to continuing solid pulp demand, low inventory levels, and relatively full order books in the paper industry; planning activity for new pulp mill projects continued.

Solid development of order intake in Q3 2010.

Significant increase of sales, earnings, and profitability.

PULP & PAPERProject activity showed further signs of recovery

4,8497.3

21.18.9

25.6288.4

1,124.9327.2

Q32010

4,3963.47.05.8

11.9205.4692.5301.6

Q32009

+10.3%-

+201.4%-

+115.1%+40.4%+62.4%+8.5%

+/-

+10.3%-

+601.4%-

+143.0%+14.4%+62.4%+78.0%

+/-

4,2391.9

17.54.6

42.0903.3778.7923.02009


4,8496.6

50.5

63.9767.7

1,124.91,075.9

Q1-Q32010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit


26.3EBITDA671.2Sales692.5Order backlog (as of end of period)

604.4Order intake

Q1-Q32009


Market: in spite of relatively good global capacity utilization of steel plants, very moderate project activity continued due to persistent uncertainty regarding the economic development in the next few quarters and the slight drop in steel prices influenced by over-capacities in certain segments; only few orders, especially from Asia, with focus on stainless steel market.

Order intake in Q3 2010 significantly below the high figure of Q3 2009.

Sales down; however, profitability remained at a solid level.

METALSLow project activity; solid profitability

9686.75.67.66.4

84.2

524.755.1

Q32010

9918.39.08.89.5

108.3

656.5116.4

Q32009

-2.3%-

-37.8%-

-32.6%-22.3%

-20.1%-52.7%

+/-

-2.3%-

-34.8%-

-30.4%-30.0%

-20.1%-24.8%

+/-

9714.3

20.54.9

23.2473.4

564.1296.22009


9684.9

12.0

14.2246.3

524.7196.7

Q1-Q32010

991-Employees (as of end of period)

%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit


20.4EBITDA351.9Sales

656.5Order backlog (as of end of period)

261.7Order intake

Q1-Q32009


Market: satisfactory project activity for sludge dewatering, especially in Europe and Asia; considerable project activity for industrial process applications (especially in the mining and petrochemical industries), with the most active regions in China, India, Russia, and the Middle East; while project activity for sludge drying plants in the municipal sector remained moderate, project activity for industrial drying plants was satisfactory.

Order intake in Q3 2010 significantly higher than in Q3 2009, due to both strong organic growth and first-time consolidation of acquired companies (KMPT, Delkor).

Sales, earnings, and profitability developed very favorably.

ENVIRONMENT & PROCESSOrder intake, sales, earnings, and profitability significantly up

1,7779.79.8

11.211.3

101.1259.7129.0

Q32010

1,3805.34.06.95.2

75.9162.978.8

Q32009

+28.8%-

+145.0%-

+117.3%+33.2%+59.4%+63.7%

+/-

+28.8%-

+73.1%-

+58.1%+7.9%

+59.4%+34.1%

+/-

1,3297.6

24.69.1

29.3322.6139.6305.42009


1,7778.4

20.6

24.5245.6259.7310.9

Q1-Q32010


%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit



231.8Order intake

Q1-Q32009


Market: favorable project activity in the animal feed sector, mainly in South America, Asia, and Eastern Europe; continuation of good project activity for biomass/wood pelleting equipment in Europe and North America – and to an increasing extent in Asia and South America.

Order intake in Q3 2010 significantly up compared to Q3 2009.

Very good development of sales, earnings, and profitability.

FEED & BIOFUELVery good development of wood pelleting and feed sectors

5267.93.38.83.7

41.958.829.4

Q32010

515-2.0-0.6-0.3-0.129.533.421.4

Q32009

+2.1%-

+650.0%-

n. a.+42.0%+76.0%+37.4%

+/-

+2.1%-

+507.7%-

+240.7%+21.2%+76.0%+41.3%

+/-

5170.81.02.32.8

120.257.6

130.82009


5267.17.9

9.2111.558.8

110.9

Q1-Q32010

515-Employees (as of end of period)

%

MEUR

MEUR

MEUR

MEUR

MEUR

Unit



78.5Order intake

Q1-Q32009


Contents

ANDRITZ GROUP:

overview

Q1-Q3 2010 results

Targets and outlook


Sales (MEUR)

9371,319

2,459

3,1983,610

3,283

2,710

1,7441,481

1,2251,110

4,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1-Q32010

2011 2012 2013/2014E

Confident to continue growth: Confirmation of goal to increase sales by 10% p. a. on average.

CAGR 2000-2009: +15% p. a. (thereof 7% p. a. organic growth).

4.5 bn. goal, delayed due to crisis, should be reached 2013/2014.

4.5 bn. Euro sales goal targeted for 2013/2014Sales target


EBITA margin target 7% over the cycle

7.0

4.75.2 5.3 5.1

6.3 6.1 6.1 6.4 6.5

5.1

6.7

937

4,500

2,459

1,3191,110 1,225

1,4811,744

2,7103,283

3,610

3,198

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 Q1-Q32010

2011 2012 2013 2014E0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

EBITA margin (%) Sales (MEUR)

2010 ff.: 7% over the cycle

*

* Incl. restructuring expenses

2005-2009: average 6.0% 2000-2004: average 5.3%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500


4.15

0.450.71

0.51 0.57

1.03

1.53

2.312.61 2.73

1.89

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

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

EPS(EUR)

CAGR 2000-2009 : +17.3%CAGR 2000-2014E : +17.2%

Assumptions for 2014E EPS calculation: 4.5 bn. EUR sales; 7% EBITA margin; 30% tax rate.

Earnings per share


Dividends 2002-2006 adjusted for share split of 1:4

Payout ratio52.9%

40.3%38.3%32.5%32.6%34.3%

44.2%44.1%

2002 2003 2004 2005 2006 2007 2008 2009

Dividend per share (EUR)

0.23 0.25 0.350.50

0.751.00 1.10 1.00

2002 2003 2004 2005 2006 2007 2008 2009

Goals: Keep payout ratio by at least 50%. Mid-term increase to ~60%.

Dividend paymentsSustainable dividend payout ratio on top of strong sales growth


Expectations for the business areas: HYDRO: continuing positive project activity for both

modernizations/upgrades and new hydropower plants.

PULP & PAPER: acceptable project activity for greenfield pulp and paper mills.

METALS: moderate project activity expected to continue with only selective projects for special end-market products in emerging markets (automotive and household applications industries).

ENVIRONMENT & PROCESS: continuation of favorable project activity for mechanical and thermal solid/liquid separation.

FEED & BIOFUEL: satisfactory project activity for both feed and biomass pelleting equipment.

Expectations for the ANDRITZ GROUP: Sales 2010 slightly up compared to 2009.

Earnings positively impacted by restructuring measures implemented in 2008/2009.

OutlookSales 2010 expected to slightly increase vs. 2009


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 · 9 Company presentation November 2010 ANDRITZ GROUP Q3 2010/Q1-Q3 2010 results at a glance Favorable business development in Q3 2010 Order intake: 932 MEUR in