Andritz Ag · VIE:ANDR

Andritz — Q1 2014 Earnings Presentation

12 slides from Andritz's earnings presentation, May 6, 2014

1. Slide 1: Results of the first quarter of 2014

   Results of the first quarter of 2014 May 6, 2014

2. Slide 2: Low order-related sales generation in several business areas

   Low order-related sales generation in several business areas Groupʼs sales (MEUR) Sales by business area Q1 2014 vs. Q1 2013 thereof thereof Schuler: 109 Schuler: 258 ▼ HYDRO: -5% ▼ PULP & PAPER: -12% +5% ▲ METALS: +65% (-20% ex Schuler) ▼ SEPARATION: -3% * The Schuler Group was consolidated into th

3. Slide 3: Favorable order intake in PULP & PAPER and METALS

   Favorable order intake in PULP & PAPER and METALS Groupʼs order intake (MEUR) Order intake by business area Q1 2014 vs. Q1 2013 thereof Schuler: 320 ▼ HYDRO: -9% thereof Schuler: 96 ▲ PULP & PAPER: +55% +35% ▲ METALS: +191% (+107% ex Schuler) ▼ SEPARATION: -1% * The Schuler Group was consolidated in

4. Slide 4: Order intake and sales by region

   Order intake and sales by region Well-balanced geographical exposure 1,742 MEUR order intake, thereof … 1,220 MEUR sales, thereof …  Europe + North America: 46%  Europe + North America: 62%  Emerging markets: 47%  Emerging markets: 34%  Others: 7%  Others: 4% 7 (6) 10 (11) 4 (4) Others Others

5. Slide 5: Order backlog: Solid workload in all business areas

   Order backlog Solid workload in all business areas Groupʼs order backlog* (MEUR) Order backlog by business area Q1 2014 vs. Q1 2013 March 31, 2014 vs. March 31, 2013: -1,4% (-1,3% ex Schuler) thereof thereof Schuler: Schuler: 1,126 1,101 ▼ HYDRO: -6% +5% ▲ PULP & PAPER: +6% ▼ METALS: -1% (+1% ex Sch

6. Slide 6: Earnings improved, but still not satisfactory

   Earnings improved, but still not satisfactory EBITA (MEUR) and EBITA margin  EBITA, at 48.6 MEUR (margin: 4.0%), above very low reference figure of last year (impacted by high provisions for a pulp mill project in South America), however at unsatisfactory level due to: 4.0%  Slow project-related s

7. Slide 7: Key figures Q1 2014 at a glance

   Key figures Q1 2014 at a glance Unit Q1 2014 Q1 2013* +/- 2013 Order intake MEUR 1,742.2 1,288.3 +35.2% 5,611.0 Order backlog (as of end of period) MEUR 7,734.7 7,844.3 -1.4% 7,388.5 Sales MEUR 1,219.5 1,163.8 +4.8% 5,710.8 EBITDA MEUR 69.5 32.0 +117.2% 255.2 EBITA MEUR 48.6 14.2 +242.3% 164.1 EBIT

8. Slide 8: HYDRO: Solid business development

   HYDRO Solid business development Market development Q1 2014  Modernizations/rehabilitations: satisfactory project activity in Europe and North America  New hydropower plants: some projects in emerging markets in implementation or planning phase  Small-scale hydropower plants and pumps: solid proj

9. Slide 9: PULP & PAPER: Very favorable order intake, sales and earnings down

   PULP & PAPER Very favorable order intake ‒ sales and earnings down Market development Q1 2014  Good project and investment activity for both modernizations and greenfields  Satisfactory investment activity for biomass/recovery boilers  Unchanged challenging competitive environment, especially for

10. Slide 10: METALS: satisfactory development of Schuler, legacy METALS at low level

    METALS: satisfactory development of Schuler, however legacy ANDRITZ METALS at unchanged low level Market development Q1 2014  Good project activity for metal forming equipment  Steel: unchanged low project activity  only some selective investments  Furnaces: low investment activity Business deve

11. Slide 11: SEPARATION: Weak business development

    SEPARATION Weak business development Market development Q1 2014  Municipal/industrial wastewater treatment, food and chemical industries: solid investment activity  Unchanged low project activity in mining and minerals  Feed and biomass: good project activity Business development Unit Q1 2014 Q1

12. Slide 12: Outlook 2014: slight sales increase and significant earnings improvement targeted

    Outlook 2014: slight sales increase and significant earnings improvement targeted Expectations for the business area HYDRO: solid project activity for modernizations and new hydropower stations to continue; some large-scale order awards expected PULP & PAPER: solid project activity for modernization

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