ANDRITZ GROUP Company presentation February 2017 Contents 1 ANDRITZ - PowerPoint PPT Presentation

ANDRITZ GROUP Company presentation February 2017

Contents 1 ANDRITZ GROUP overview 2 Business areas: market update 3 Outlook, Group strategy, and long-term goals

The ANDRITZ GROUP Overview Sales by region 2015 (%) ANDRITZ is a 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 Emerging 6,377 Europe & Global presence: over 250 production sites and service/sales markets: 43% North America: 57% MEUR companies worldwide KEY FINANCIAL FIGURES Q1-Q3 2016 AND 2015 Unit* Q1-Q3 2016 2015 Q1-Q3 2016 2015 2014 Order intake 4,036.5 6,017.7 MEUR Europe 38 41 38 Order backlog (as of end of period) 7,043.6 7,324.2 MEUR North America 21 16 19 Sales 4,239.3 6,377.2 MEUR South America 15 15 14 EBITA 292.1 429.0 MEUR China 11 13 12 Net income (including non-controlling interests) MEUR 194.3 270.4 Asia (ex. China) 10 11 13 Employees (as of end of period; without apprentices) 25,547 24,508 - Others* 5 4 4 * Africa and Australia * MEUR = million euro 3 Company presentation February 2017

Company profile Worldwide leading position in four business areas 30%* 35%* 25%* 10%* Product offerings: Product offerings: Product offerings: Product offerings: electromechanical equipment for presses for metal equipment for equipment for production of all types of forming (Schuler); solid/liquid separation hydropower plants pulp, paper, tissue, and systems for production for municipalities and (turbines, generators); board; of stainless steel, various industries; pumps; turbo generators energy boilers carbon steel, and non- equipment for ferrous metal strip; production of animal industrial furnace plants feed and biomass pellets * Average share of ANDRITZ GROUP’s total order intake 4 Company presentation February 2017

Strengthening of market position Growth through organic expansion and acquisitions Compound Annual Growth Rate (CAGR) of Group sales 2005-2015: Acquisitions by business area since 1990 +14% p. a. (thereof approximately half organic growth) HYDRO 2012 AES 2006 VA TECH HYDRO 2013 MeWa 2007 Tigép 2015 Euroslot 2008 GE Hydro business 2016 SHW Casting Technologies 2008 GEHI (JV) 2010 Precision Machine METALS 2010 Hammerfest Strøm (59%) 1997 Sundwig 2010 Ritz 1998 Thermtec 6,377 2011 Hemicycle Controls 2000 Kohler 2002 SELAS SAS Furnace Div. 5,711 5,859 PULP & PAPER 2004 Kaiser 1990 Sprout-Bauer 2005 Lynson 5,177 1992 Durametal 2008 Maerz 1994 Kone Wood 2012 Bricmont 4,596 1998 Kvaerner Hymac 2012 Soutec 1999 Winberg 2013 Schuler (> 95%) 2000 Ahlstrom Machinery 2013 FBB Engineering 3,610 2000 Lamb Baling Line 2014 Herr-Voss Stamco 3,554 3,283 2000 Voith Andritz Tissue LLC (JV) 2016 Yadon (51%) 3,198 2002 ABB Drying 2016 AWEBA 2,710 2003 IDEAS Simulation 2003 Acutest Oy SEPARATION 2003 Fiedler 1992 TCW Engineering 2004 EMS (JV) 1995 Jesma-Matador 1,744 2005 Cybermetrics 1996 Guinard 2005 Universal Dynamics Group 2000 UMT 2006 Küsters 2002 3SYS 2006 Carbona 2004 Bird Machine 2006 Pilão 2004 NETZSCH Filtration 2007 Bachofen + Meier 2004 Fluid Bed Systems 2007 Sindus 2005 Lenser Filtration 2008 Kufferath 2006 CONTEC Decanter 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2009 Rollteck 2009 Delkor Capital Equipment 2010 Rieter Perfojet 2009 Frautech 2010 DMT/Biax 2010 KMPT 2011 AE&E Austria 2012 Gouda Order intake (MEUR) Sales (MEUR) 2011 Iggesund Tools 2013 Shende Machinery 2011 Tristar Industries 2011 Asselin-Thibeau 5 Company presentation February 2017

Contents 1 ANDRITZ GROUP overview 2 Business areas: market update 3 Outlook, Group strategy, and long-term goals

HYDRO Challenging market environment Modernizations/rehabilitations Small-scale hydropower Slow project activity due to unchanged and pumps low electricity and energy prices, Satisfactory project activity, especially in Europe especially in emerging markets Outlook: Outlook: Stable - Stable +/- Long-term average growth potential: 3-4 % p.a. New hydropower plants Some new projects in advanced Competition planning phase, however awards only Challenging market conditions for expected in the medium-term some selective projects Outlook: Main competitors: Stable +/- GE/Alstom, Voith 7 Company presentation February 2017

Large-scale hydro projects with potential order values of > 100 MEUR for electro-mechanical equipment Planned projects Country MW Total plant Time frame Inga 3 Congo 4,800 Medium to long term Advance work Swansea Bay United Kingdom 352 Government decision in 2017 agreement signed. Koralm Austria 918 Effective within next 2-3 years ANDRITZ HYDRO Grand Coulee Units G19-G21 share ~ 250 MEUR. United States 1,800-2,310 Effective within next 2-3 years Turbine upgrade/rehabilitation Expected to be booked as order Upper Cisokan Indonesia 1,040 Expected to be effective within 2017 intake in 2017 McNary – Runner Replacement United States 980-1,127 Effective within next 2-3 years Dasu Pakistan 2,160 Effective within next 2-3 years Caculo Cabaca Angola 2,100 Effective within next 2-3 years Rogun Tajikistan 2,400 Effective within next 2-3 years Koysha (Gibe IV) Ethiopia 2,300 Effective within next 2-3 years Toktogul (phase 2) Kyrgyzstan 1,440 Effective within next 2-3 years Pfaffenboden Austria 300 Effective within next 2-3 years Polavaram India 960 Effective within next 2-3 years 8 Company presentation February 2017

Global hydropower potential by region To date, only about 25% has been developed Europe North America 1,200 47% China 36% TWh/year 53% 1,910 TWh/year 64% 41% 2,720 TWh/year Africa 59% Asia (ex. China) South America 7% 15% 1,646 24% TWh/year 5,463 2,803 TWh/year 93% TWh/year 85% 76% Technically feasible hydropower potential : ~ 15,700 TWh/year ■ Not developed hydropower potential (%) Existing hydropower generation: ~ 3,962 TWh/year ■ Developed hydropower generation (%) Source: Hydropower & Dams World Atlas, 2016 9 Company presentation February 2017

Biggest hydro potential in Asia Regional split of total value of ANDRITZ offers outstanding 19% 22% Not developed hydropower Regional split of number of ANDRITZ potential by region offers outstanding 9% 8% 15% 19% 11% 39% 11% 39% Asia Europe ~12,000 20% Africa / Middle East North America TWh/year 15% South America 33% 10% 13% 17% Asia Europe Africa / Middle East North America Europe North America South America Africa China Asia (ex. China) South America 10 Company presentation February 2017

PULP & PAPER Satisfactory project and investment activity Long-term Modernizations average growth potential: Service Satisfactory project and investment 2-3 % p.a. activity for modernization/refurbishment Solid demand should ensure further projects (increase capacity, efficiency, organic growth; Focus on enlarging and profitability of existing mills) IIoT product offerings (eShop, ANDRITZ OPP) Outlook: Outlook: Stable +/- Greenfield Competition Investments in greenfield pulp mills to continue; mid- to long-term good Stable competitive environment project activity for greenfield pulp mills Main competitors: Outlook: Valmet, Voith Stable + 11 Company presentation February 2017

PULP & PAPER Good project pipeline for greenfield pulp mills Mozambique: Chile: Owner – project Capacity/a.* Planned start-up Owner Capacity/a.* Planned start-up Arauco – MAPA 1.6 2020 Portucel 1.5 2022 et seq. Finland: Brazil: Owner – project Capacity/a.* Planned start-up Finnpulp – Kuopio 1.2 2020 Owner – project Capacity/a.* Planned start-up Eldorado – Três Lagoas 2.3 2021 China: Veracel – Eunápolis 1.8 2022 et seq. Braxel – Peixes 2.0 2022 et seq. Owner – project Capacity/a* Planned start-up CRPE Holding S.A – Guangxi Jingui – Ribas do Rio Pardo 2.2 2022 et seq. Qinzhou City 1.2 2020 Suzano – Imperatriz 1.3 2022 et seq. Russia: Fibria – Aracruz 1.7 2022 et seq. Eldorado - Três Lagoas 2.3 2022 et seq. Owner – project Capacity/a* Planned start-up CMPC Brazil – Pelotas 1.8 2022 et seq. Siberwood 0.9 2019 Sveza Group 1.2 2020 Segezha 1.3 2022 et seq. * Annual capacity in million tons (may change over time); source: Pöyry. Capacity/year refers to added gross capacity (i.e. relevant as accessible market) without taking into account possible shut-downs of existing capacities 12 Company presentation February 2017

METALS Satisfactory project and investment activity Aluminum Metal forming Satisfactory project activity; some Project and investment activity below the favorable level of the previous year medium-sized order awards by car Outlook: manufacturers and suppliers Stable demand from other industries Stable +/- Outlook: Stable + Competition Carbon steel / Stainless steel Stable competition at challenging level Unchanged low project activity, Competitors: only selective investments in emerging Long-term average Metal forming: main competitors from markets growth potential Japan and China Metal Metal Outlook: forming: processing: Carbon, Stainless, Aluminum: 4-5 % p.a. 2-3 % p.a. Stable - Danieli, SMS, Primetals (Mitsubishi/VAI) 13 Company presentation February 2017