EANS-News: ANDRITZ GROUP: favorable business development in 2012

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Financial Figures/Balance Sheet

Graz (euro adhoc) - Graz, March 1, 2013. International technology
Group ANDRITZ showed favorable business development in 2012: - Sales,
at 5,176.9 million euros (MEUR), increased by 12.6% compared to the
previous year's reference figure (2011: 4,596.0 MEUR). Particularly
the PULP & PAPER business area noted a significant sales increase.

- The order intake, at 4,924.4 MEUR, was 13.7% below the
extraordinarily high level of the previous year (2011: 5,706.9
MEUR), which included three large orders with a total value of
approximately 1,400 MEUR. Due to these large orders, the order
intake decreased in the HYDRO and PULP & PAPER business areas
compared to 2011. The other business areas noted an increase of order
intake.

- The order backlog as of December 31, 2012 amounted to 6,614.8 MEUR
and was thus virtually unchanged compared to the reference figure
of last year (-1.0% versus December 31, 2011: 6,683.1 MEUR). In the
HYDRO and SEPARATION business areas, the order backlog rose; all
other business areas noted a decline.

- The EBITA, at 357.8 MEUR, exceeded the reference figure of last
year by 7.9% (2011: 331.5 MEUR). Thus, the EBITA margin amounted to
6.9% (2011: 7.2%); this slight decline is attributable to the
project mix in the PULP & PAPER business area (higher portion of
large projects compared to 2011) as well as cost overruns on some
projects and expenses for business expansion in the emerging
markets in the SEPARATION and FEED & BIOFUEL business areas.

- The financial result declined to -2.8 MEUR (2011: 9.0 MEUR) due to
the write- down of non-consolidated companies and expenses related
to the 350 MEUR corporate bond, issued in July 2012.

- The net income (excluding non-controlling interests) amounted to
243.6 MEUR (2011: 230.7 MEUR).

- The balance sheet structure as of end of 2012 continued to be
solid. The equity ratio amounted to 20.0% (December 31, 2011:
20.6%). Liquid funds amounted to 2,047.8 MEUR (end of 2011: 1,814.5
MEUR), the net liquidity to 1,285.7 MEUR (December 31, 2011:
1,400.6 MEUR).

- At the coming Annual General Meeting, the Executive Board will
propose to increase the dividend to 1.20 EUR per share for the 2012
business year (2011: 1.10 EUR), corresponding with a payout ratio
of approximately 51%.

Wolfgang Leitner, President and CEO of ANDRITZ AG, says about the
outlook for the 2013 business year: "We expect no significant
recovery of the global economy also in this year. However, we still
see solid development with good project activity in the markets
served by ANDRITZ".

Based on these expectations and the first-time consolidation of
Schuler AG from March 1, 2013, the ANDRITZ GROUP expects sales to
increase in 2013 compared to the previous year. Net income is also
expected to rise compared to last year.

- End -

Important key financial figures of the ANDRITZ GROUP at a glance

(in MEUR) 2012 2011 +/- Q4 2012 Q4 2011 +/-
Sales 5,176.9 4,596.0 +12.6% 1,473.6 1,411.8 +4.4%
HYDRO 1,836.8 1,772.9 +3.6% 591.1 549.9 +7.5%
PULP & PAPER* 2,282.2 1,884.9 +21.1% 557.4 591.0 -5.7%
SEPARATION* 468.0 419.9 +11.5% 163.3 123.5 +32.2%
METALS 404.7 372.7 +8.6% 110.3 109.3 +0.9%
FEED & BIOFUEL 185.2 145.6 +27.2% 51.4 38.1 +34.9%

Order intake 4,924.4 5,706.9 -13.7% 1,131.2 808.3 +39.9%
HYDRO 2,008.4 2,096.2 -4.2% 503.8 283.5 +77.7%
PULP & PAPER* 1,962.4 2,694.1 -27.2% 439.1 321.9 +36.4%
SEPARATION* 468.2 438.8 +6.7% 102.3 86.8 +17.9%
METALS 324.2 318.6 +1.8% 53.4 64.8 -17.6%
FEED & BIOFUEL 161.2 159.2 +1.3% 32.6 51.3 -36.5%

Order backlog (as
(of end of period) 6,614.8 6,683.1 -1.0% 6,614.8 6,683.1 -1.0%

EBITDA 418.6 386.2 +8.4% 132.5 124.9 +6.1%
EBITDA margin 8.1% 8.4% - 9.0% 8.8% -

EBITA 357.8 331.5 +7.9% 115.7 110.1 +5.1%
EBITA margin 6.9% 7.2% - 7.9% 7.8% -

Earnings Before
Interest and Taxes
(EBIT) 334.5 312.7 +7.0% 110.5 104.8 +5.4%

Financial result -2.8 9.0 -131.1% -9.9 1.8 -650.0%

Earnings Before
Taxes (EBT) 331.6 321.7 +3.1% 100.6 106.6 -5.6%

Net income (without
(non-controlling
interests) 243.6 230.7 +5.6% 76.4 80.2 -4.7%

Cash flow from
operating activities 346.5 433.8 -20.1% 127.3 93.9 +35.6%

Capital expenditure 109.1 77.0 +41.7% 56.8 35.3 +60.9%

Employees (as of
end of period;
without
apprentices) 17,865 16,750 +6.7% 17,865 16,750 +6.7%

* In 2012, there was a minor product shift from the SEPARATION to the
PULP & PAPER business area. Comparison figures for 2011 have been
adjusted. All figures according to IFRS. Due to the utilization of
automatic calculation programs, differences can arise in the addition
of rounded totals and percentages. MEUR = million euros.

The ANDRITZ GROUP International technology Group ANDRITZ is a
globally leading supplier of plants, equipment, and services for
hydropower stations, the pulp and paper industry, solid-liquid
separation in the municipal and industrial sectors, the steel
industry, and the production of animal feed and biomass pellets. In
addition, ANDRITZ offers technologies for certain other sectors
including automation, pumps, machinery for nonwovens and plastic
films, steam boiler plants, biomass boilers and gasification plants
for energy generation, flue gas cleaning plants, plants for the
production of panelboards (MDF), thermal sludge utilization, and
torrefaction plants. The publicly listed, international technology
Group is headquartered in Graz, Austria, and had a staff of around
17,900 employees as of end of 2012. ANDRITZ operates over 180
production sites as well as service and sales companies all around
the world.

Annual and financial reports Annual reports and financial reports of
the ANDRITZ GROUP are available at www.andritz.com as online and pdf
versions. Printed copies can be requested at investors@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.

Further inquiry note:
Oliver Pokorny
Group Treasury, Corporate Communications & Investor Relations
Tel.: +43 316 6902 1332
Fax: +43 316 6902 465
mailto:oliver.pokorny@andritz.com

end of announcement euro adhoc
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company: Andritz AG
Stattegger Straße 18
A-8045 Graz
phone: +43 (0)316 6902-0
FAX: +43 (0)316 6902-415
mail: welcome@andritz.com
WWW: www.andritz.com
sector: Machine Manufacturing
ISIN: AT0000730007
indexes: WBI, ATX Prime, ATX, ATX five
stockmarkets: official market: Wien
language: English