EANS-Adhoc: ANDRITZ GROUP: financial year 2009 Solid business development in spite of the difficult economic environment - Sales and earnings below the record level of 2008 - Solid order intake

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annual report

05.03.2010

Graz, March 5, 2010. International technology Group ANDRITZ recorded
a solid business development in the 2009 financial year in spite of
the generally difficult economic environment. Sales of the ANDRITZ
GROUP amounted to approximately 3.2 billion EUR, thus 11% below the
record figure for 2008. Order intake, at over 3.3 billion EUR,
remained on a very solid level, only 10% below the high value of
2008. The order backlog at the end of 2009 amounted to approximately
4.4 billion EUR and was thus slightly higher than at the end of 2008.
Due to the decline in sales and one-off restructuring expenses of
approximately 29 MEUR, the Group´s EBITA declined to 164.1 MEUR
(2008: 233.2 MEUR). Profitability (EBITA margin) amounted to 5.1%
(2008: 6.5%) - excluding these one-off restructuring expenses, the
EBITA margin was 6.0% (2008: 6.8%). Net income (excl. non-controlling
interests) amounted to 96.8 MEUR (2008: 139.7 MEUR). At the Annual
General Meeting, the Executive Board will propose a dividend payment
of 1.00 EUR per share (2008: 1.10 EUR), which is equivalent to an
increase in the payout ratio to 52.9% (2008: 40.3%).

Sales below record level of 2008 - HYDRO remains strong Sales of the
ANDRITZ GROUP amounted to 3,197.5 MEUR in 2009, thus 11.4% below the
record figure for the previous year (2008: 3,609.8 MEUR). While the
HYDRO business area achieved a significant increase in sales, sales
in the other business areas declined compared to 2008 - particularly
in PULP & PAPER.

Satisfactory order intake - slight increase of order backlog Despite
the difficult global economic conditions, order intake of the Group
in 2009, at 3,349.3 MEUR, was only 9.6% below the high level of the
previous year (2008: 3,705.3 MEUR). This is mainly due to the very
positive development of the HYDRO business area, where order intake
rose by 9.8% to a new record value of 1,693.9 MEUR (2008: 1,543.4
MEUR). In contrast, the other business areas - particularly METALS -
saw a decline in order intake compared to the previous year.

The order backlog of the ANDRITZ GROUP as of December 31, 2009
amounted to 4,434.5 MEUR, an increase of 3.7% compared to the
previous year´s high level (Dec. 31, 2008: 4,277.4 MEUR). While the
order backlog of the HYDRO business area showed a significant
increase, particularly the METALS business area recorded a decline.

Earnings significantly lower, mainly due to one-off restructuring
expenses The Group´s EBITA amounted to 164.1 MEUR, significantly
below the reference figure for the previous year (2008: 233.2 MEUR).
The profitability (EBITA margin) amounted to 5.1% (2008: 6.5%). This
decrease is mainly due to expenses for capacity adjustments and
operational restructuring of approximately 29 MEUR, particularly in
the PULP & PAPER business area, as well as due to the decline in
sales. Excluding these one-off expenses, the EBITA in 2009 amounted
to 193.1 MEUR, equivalent to an EBITA margin of 6.0% (2008: 6.8%).

Net income (excl. non-controlling interests) amounted to 96.8 MEUR
(2008: 139.7 MEUR).

Solid balance sheet structure - substantially higher liquidity Total
assets of the ANDRITZ GROUP as of December 31, 2009 increased to
3,309.3 MEUR (Dec. 31, 2008: 3,086.3 MEUR). The equity ratio as of
December 31, 2009 amounted to 20.0% (Dec. 31, 2008: 18.7%).

Liquid funds (cash and cash equivalents plus marketable securities)
amounted to 1,082.1 MEUR as of December 31, 2009 (Dec. 31, 2008:
821.8 MEUR). Net liquidity (liquid funds plus fair value of interest
rate swaps minus financial liabilities) increased to 677.9 MEUR, thus
well above the value at the end of last year (Dec. 31, 2008: 408.9
MEUR).

Dividend: increase in payout ratio At the Annual General Meeting, the
Executive Board will propose a dividend payment of 1.00 EUR per share
(2008: 1.10 EUR), which is equivalent to an increase in the payout
ratio to 52.9% (2008: 40.3%).

Outlook for 2010 `We are well-positioned for 2010 and expect a varied
development for each of the business areas. While we expect a
continuing positive environment for the HYDRO business area, we do
not anticipate a substantial increase in investment activity in the
PULP & PAPER and METALS business areas. The other business areas
should see a slight positive development,´ says President and CEO Dr.
Wolfgang Leitner.

Based on these expectations and the order backlog of more than 4.4
bn. EUR at the end of 2009, the ANDRITZ GROUP expects sales in 2010
to remain unchanged or slightly up compared to 2009. The cost
reductions resulting from the restructuring measures implemented in
2009 should positively impact the net income.

Key figures of the ANDRITZ GROUP

(Acc. to IFRS; MEUR) 2009 2008 +/- Q4 2009 Q4 2008 +/-
Sales 3,197.5 3,609.8 -11.4% 867.3 1,070.9 -19.0%
HYDRO 1,378.0 1,205.9 +14.3% 390.6 407.1 -4.1%
PULP & PAPER 903.3 1,326.6 -31.9% 232.1 345.2 -32.8%
METALS 473.4 566.2 -16.4% 121.5 154.0 -21.1%
ENVIRONMENT & PROCESS 322.6 366.6 -12.0% 94.9 126.8 -25.2%
FEED & BIOFUEL 120.2 144.5 -16.8% 28.2 37.8 -25.4%

Order intake 3,349.3 3,705.3 -9.6% 794.4 804.9 -1.3%
HYDRO 1,693.9 1,543.4 +9.8% 315.4 531.3 -40.6%
PULP & PAPER 923.0 1,033.8 -10.7% 318.6 78.3 +306.9%
METALS 296.2 611.5 -51.6% 34.5 76.9 -55.1%
ENVIRONMENT & PROCESS 305.4 361.2 -15.4% 73.6 86.9 -15.3%
FEED & BIOFUEL 130.8 155.4 -15.8% 52.3 31.5 +66.0%

Order backlog
(as of end of period) 4,434.5 4,277.4 +3.7% 4,434.5 4,277.4 +3.7%

EBITDA 218.2 278.2 -21.6% 71.5 81.7 -12.5%
EBITDA margin 6.8% 7.7% - 8.2% 7.6% -

EBITA (excl.
restructuring expenses) 193.1 246.8 -21.8% 66.8 84.7 -21.1%
EBITA margin (excl.
restructuring expenses) 6.0% 6.8% - 7.7% 7.9% -

EBITA (incl.
restructuring expenses) 164.1 233.2 -29.6% 62.1 71.1 -12.7%
EBITA margin (incl.
restructuring expenses) 5.1% 6.5% - 7.2% 6.6% -

Earnings Before Interest
and Taxes (EBIT) 147.1 218.5 -32.7% 60.0 62.9 -4.6%

Financial result 2.6 -8.1 +132.1% -4.1 -8.6 +52.3%

Earnings Before Taxes
(EBT) 149.6 210.5 -28.9% 55.9 54.3 +2.9%

Net income (excl.
non-controlling interests) 96.8 139.7 -30.7% 37.2 34.3 +8.5%

Cash flow from
operating activities 345.7 255.0 +35.6% 1.6 -54.2 +103.0%

Investments in fixed
tangible and intangible
assets 70.5 69.7 +1.1% 19.1 27.5 -30.5%

Employees
(as of end of period) 13,049 13,707 -4.8% 13,049 13,707 -4.8%

The ANDRITZ GROUP 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). The Group is headquartered in Graz, Austria, and has a
staff of approximately 13,000 employees worldwide. ANDRITZ operates
over 120 production sites, service and sales companies all around the
world.

The annual report and financial report are available on the ANDRITZ
website at www.andritz.com as an online and pdf version. Printed
copies can be requested by telephone (+43 316 6902 2722), fax (+43
316 6902 465), or e-mail (petra.wolf@andritz.com).

Disclaimer Certain statements contained in this press release
constitute `forward-looking statements.´ These statements, which
contain the words `believe´, `intend´, `expect´, and words of a
similar meaning, reflect the Executive Board´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.

end of announcement euro adhoc
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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Michael Buchbauer

Head of Group Treasury, Corporate Communications & Investor Relations

Tel.: +43 316 6902 2979

Fax: +43 316 6902 465

mailto:michael.buchbauer@andritz.com

Branche: Machine Manufacturing
ISIN: AT0000730007
WKN: 632305
Index: WBI, ATX Prime, ATX
Börsen: Wien / official dealing