World market leadership and growth:

ANDRITZ’s day-to-day challenges

WORLD MARKET LEADSHIP

Company profile and vision

The ANDRITZ GROUP is a globally leading supplier of plants and services for the hydropower, pulp and paper, metals, and other specialized industries (solid/liquid separation, feed and biofuel) and has the goal to become the world market leader in all of the markets it serves.

Concentrate on existing growth markets

All five ANDRITZ business areas serve markets with long-term and sustained growth potential. Within these markets, the Group focuses on rapidly growing segments, e.g. renewable energy sources (hydropower and biomass), stainless steel, or special paper grades (tissue). ANDRITZ’s long-term goal is to generate more than 50% of its sales from products related to renewable energies.

Global presence

ANDRITZ serves globally acting companies all over the world. In order to meet customers’ needs as best and as quickly as possible, ANDRITZ has a global presence with over 120 locations (including production facilities, service and sales companies). The Group’s goal is to further strengthen local service presence close to its customers.

Research and development

ANDRITZ is among the technological leaders in all five of its business areas and invests heavily in research and development. On average, approximately 3% of sales are invested in research and development every year, and over 300 employees work in the Group’s research centers.

The research and development activities focus on making ANDRITZ the technologically preferred supplier. Thus, the main goal is to develop customized technologies that enhance productivity of customer’s plants, minimize operating costs, and maximize energy efficiency and environmental protection.

GROWTH

All strategic measures are focused on maintaining profitable growth in the long-term. With this in mind, ANDRITZ is pursuing three overall strategic goals:

1. Increasing sales by an average of 10% per annum, based on organic expansion, mainly by research and development, as well as acquisitions. ANDRITZ continues to look out for opportunities to acquire companies and businesses that complement its existing range of products, process technologies, and services. The goal is to be a single-source supplier with full-line capabilities in all business areas. In the past decade, sales of the Group have increased by approximately 15% per annum.
2. Achieving profitability (EBITA margin) of 7% on average over the cycle. In the past ten years, the average EBITA margin has seen a steady increase. Whereas the EBITA margin average was 5.3% from 2000 to 2004, this figure increased to 6.3% (excl. restructuring expenses) from 2005 to 2009.
3. Extending the service portfolio in order to help customers achieve their goals in terms of productivity, profitability, and sustainability.

Global presence

Austria: Graz (headquarters of the ANDRITZ GROUP), Linz, Vienna, Weiz Czech Republic: Ceske Budejovice, Hradec Králové, Prague Denmark: Esbjerg Finland: Helsinki, Hollola, Kotka, Savonlinna, Tampere, Varkaus France: Asnières-sur-Seine, Châteauroux, Châtellerault, Grenoble, Haguenau, Saint Martin Le Beau, Vélizy-Villacoublay Germany: Bretten-Gölshausen, Cologne, Düren, Düsseldorf, Hemer, Holzmaden, Krefeld, Mettmann, Ravensburg, Regensburg, Selb, Senden Great Britain: Belper, Doncaster, Hull, Newcastle-under-Lyme Hungary: Tiszakécske Italy: Schio (Vicenza) The Netherlands: Den Helder, Geldrop, Rotterdam Norway: Jevnaker Poland: Warsaw Romania: Sibiu Russia: Moscow, St. Petersburg Slovakia: Humenné, Levice, Spišská Nová Ves Spain: Barcelona, Madrid Sweden: Hedemora, Karlstad, Kristinehamn, Nälden, Örnsköldsvik, Stockholm, Växjö, Vallentuna Switzerland: Bülach, Jonschwil, Kriens, Vevey, Wohlen, Zurich Turkey: Ankara Ukraine: Kiev

Canada: Brantford, Edmonton, Lachine, Nanaimo, Peterborough, Pointe Claire, Prince George, Richmond, Saskatoon, Stoney Creek, Terrace Mexico: Morelia, Veracruz USA: Alpharetta, Arlington, Bellingham, Canonsburg, Charlotte, Decatur, Glens Falls, Janesville, Lakeland, Montoursville, Muncy, Pell City, Roswell, San Leandro, Scott Depot, Spartanburg, Springfield, Tualatin, Walpole

Brazil: Araraquara, Barueri, Campinas, Curitiba, Pomerode, Porto Alegre, São Paulo, Serra Chile: Santiago de Chile, Talcahuano Colombia: Bogotá Peru: Lima Uruguay: Fray Bentos, Río Negro Venezuela: Caracas, Estado Carabobo

Beijing, Foshan, Hangzhou, Shanghai, Zhejiang

India: Bangalore, Chennai, Haryana, Mandideep, New Delhi Indonesia: Jakarta Iran: Tehran Japan: Tokyo Malaysia: Kuala Lumpur, Selangor Philippines: Makati City, Manila Singapore: Singapore Taiwan: Taipei Thailand: Bangkok Vietnam: Hanoi, Ho Chi Minh City

Australia: Victoria, New South Wales South Africa: Johannesburg