Company presentation February 2016 ANDRITZ GROUP

1 ANDRITZ GROUP overview

2 Business areas – market update

3 Long-term goals and summary/outlook

Contents

KEY FINANCIAL FIGURES 2014

* MEUR = million euro

3

The ANDRITZ GROUP Overview

Unit 2014

Order intake MEUR* 6,101.0

Order backlog (as of end of period) MEUR 7,510.6

Sales MEUR 5,859.3

EBITA MEUR 379.5

Net income (including non-controlling interests) MEUR 210.0

Employees (as of end of period; without apprentices) - 24,853

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 Global presence: over 250 production sites and service/sales companies worldwide

Company presentation February 2016

4

Company profile Worldwide leading position in four business areas

Product offerings: electromechanical equipment for hydro-power plants (turbines, generators); pumps; turbo generators

30-35%*

Product offerings: equipment for production of all types of pulp, paper, tissue, and board; energy boilers

30-35%* 25%* 10%*

Product offerings: presses for metalforming (Schuler); systems for production of stainless steel, carbon steel, and non-ferrous metal strip; industrial furnace plants

Product offerings: equipment for solid/liquid separation for municipalities and various industries; equipment for pro-duction of animal feed and biomass pellets

Note: figures above relate to the FY 2014 * Average share of ANDRITZ GROUP’s total order intake

Order intake:

1,817 MEUR

Sales:

1,752 MEUR

Order intake:

1,996 MEUR

Sales:

1,969 MEUR

Order intake:

1,693 MEUR

Sales:

1,550 MEUR

Order intake:

596 MEUR

Sales:

587 MEUR

Company presentation February 2016

5

Strengthening of market position Growth through organic expansion and acquisitions

Acquisitions by business area since 1990

1,481 1,744

2,710 3,283

3,610 3,198

3,554

4,596

5,177 5,711

5,859

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales (MEUR) Order intake (MEUR)

Compound Annual Growth Rate (CAGR) of Group sales 2004-2014: +14% p. a. (thereof approximately half organic growth)

2011 Tristar Industries 2011 Asselin-Thibeau 2012 AES 2013 MeWa 2015 Euroslot

METALS 1997 Sundwig 1998 Thermtec 2000 Kohler 2002 SELAS SAS Furnace Div. 2004 Kaiser 2005 Lynson 2008 Maerz 2012 Bricmont 2012 Soutec 2013 Schuler (> 95%) 2013 FBB Engineering 2014 Herr-Voss Stamco 2015 Yadon (51%)* SEPARATION 1992 TCW Engineering 1995 Jesma-Matador 1996 Guinard 2000 UMT 2002 3SYS 2004 Bird Machine 2004 NETZSCH Filtration 2004 Fluid Bed Systems 2005 Lenser Filtration 2006 CONTEC Decanter 2009 Delkor Capital Equipment 2009 Frautech 2010 KMPT 2012 Gouda 2013 Shende Machinery

HYDRO 2006 VA TECH HYDRO 2007 Tigép 2008 GE Hydro business 2008 GEHI (JV) 2010 Precision Machine 2010 Hammerfest Strøm (59%) 2010 Ritz 2011 Hemicycle Controls PULP & PAPER 1990 Sprout-Bauer 1992 Durametal 1994 Kone Wood 1998 Kvaerner Hymac 1999 Winberg 2000 Ahlstrom Machinery 2000 Lamb Baling Line 2000 Voith Andritz Tissue LLC (JV) 2002 ABB Drying 2003 IDEAS Simulation 2003 Acutest Oy 2003 Fiedler 2004 EMS (JV) 2005 Cybermetrics 2005 Universal Dynamics Group 2006 Küsters 2006 Carbona 2006 Pilão 2007 Bachofen + Meier 2007 Sindus 2008 Kufferath 2009 Rollteck 2010 Rieter Perfojet 2010 DMT/Biax 2011 AE&E Austria 2011 Iggesund Tools

* Closing expected for Q1 2016

Company presentation February 2016

1 ANDRITZ GROUP overview

2 Business areas – market update

3 Long-term goals and summary/outlook

Contents

7

HYDRO Challenging, but solid market environment

Large-scale plants Small-scale plants Pumps

Market

update

>> Solid, but rather slow project activity for modernizations in Europe and North America

>> Pumped storage projects on hold due to low electricity prices

>> Greenfield hydropower projects in emerging

markets, however awards expected only in the long term

Good activity, especially in emerging markets (high energy demand, low capex needs)

Demand for special pumps to remain at good level (irrigation, water transport, nuclear, etc.)

Competition Stable competition at challenging level. Main competitors: GE/Alstom, Voith

Outlook Stable -

Long-term average growth

potential:

3-4% p.a.

Stable +/- Stable +/-

Company presentation February 2016

Planned projects Country MW Total plant Time frame São Luiz do Tapajós Brazil 8,040 Medium to long term

Inga 3 Congo 4,800 Medium to long term Site C Canada 1,302 Effective within next 2-3 years Koralm Austria 918 Effective within next 2-3 years

Swansea Bay United Kingdom 352 Expected to be booked in 2016 Grand Coulee Units G19-G21 Turbine upgrade/rehabilitation United States 1,800-2,310 Effective within next 2-3 years

Baleh Malaysia 1,325 Effective within next 2-3 years Grand Coulee Rewind – 3rd

Powerhouse United States 1,800-2,310

Effective within next 2-3 years Upper Cisokan Indonesia 1,040 Effective within next 2-3 years

Nachtigal Cameroon 419 Effective within next 2-3 years Nam Theun 1 Laos 533 Effective within next 2-3 years

Mangla – Rehab Pakistan 888 Effective within next 2-3 years McNary – Runner Replacement United States 980-1,127 Effective within next 2-3 years

Large-scale hydro projects with potential order values of > 100 MEUR for electro-mechanical equipment

Advance work agreement signed. ANDRITZ HYDRO

share ~ 250 MEUR. Expected to be

booked as order intake not before

end of H1 2016

8 Company presentation February 2016

9

PULP & PAPER Good project activity, but unchanged challenging competition

Pulp Paper/packaging Nonwoven/plastic film Service

Market

update

>> Investments in greenfield pulp mills to continue

>> Modernization projects to increase

capacity, efficiency, and profitability of existing mills

>> Green energy investments

>> Some selective biomass pelleting projects

>> Stable demand for tissue and containerboard machines, predominantly in emerging markets

>> More stringent quality

requirements for food packaging

>> Stable and good project activity for nonwoven

>> Good potential in

certain niches

>> Plastic film: sharp market decline due to overcapacity

Good potential to grow organically and by acquisitions

Competition Unchanged challenging competition. Main pulp competitor: Valmet

Outlook

Long-term average growth

potential:

2-3% p.a.

Stable +/- Stable +/-

Company presentation February 2016

10

PULP & PAPER World chemical market pulp demand by region

Company presentation February 2016

3.3%

0.4% 0.6%

1.8%

-2.4%

11.0%

Total world North America Western Europe Latin America Japan ChinaJapan

Source: PPPC World 20 report January 2016

2015 vs. 2014

1000 t/a 2015 2014 Growth in %

World chemical market pulp demand 47,016 45,511 3.3

Mozambique: Chile: Owner – project Capacity/a.* Planned start-up

Arauco – Bio-Bio 1.6 2019

11

* 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

Brazil: Owner – project Capacity/a.* Planned start-up

Eldorado – Três Lagoas 2.3 2019 Veracel – Eunápolis 1.8 2020 et seq.

Braxel – Peixes 2.0 2020 et seq. CRPE Holding S.A – Ribas do Rio Pardo 2.2 2020 et seq. Suzano – Imperatriz 1.3 2020 et seq.

Fibria – Aracruz 1.7 2020 et seq. Eldorado – Três Lagoas 2.3 2020 et seq.

Owner Capacity/a.* Planned start-up Portucel 1.5 2020 et seq.

Finland:

Owner – project Capacity/a.* Planned start-up Finnpulp – Kuopio 1.2 2019 et seq.

China: Owner – project Capacity/a* Planned start-up

Guangxi Jingui – Qinzhou City 1.2 2020 et seq.

PULP & PAPER Good project activity for greenfield pulps mills

Company presentation February 2016

12

METALS Unchanged slow project activity in metalforming

Metalforming Carbon Steel / Stainless steel Aluminum

Market

update

>> Unchanged slow project activity with continued low demand from automotive manufacturers.

>> Stable demand from other industries

Investment activity to remain at low level. More investment activities lately in carbon and stainless in Europe.

Stable project activity.

Competition Stable competition at challenging level

Main competitors from Japan and China Main competitors: Danieli, SMS, Primetals (Mitsubishi/VAI)

Outlook

Long-term average growth

potential:

4-5% p.a.

Stable - Stable +/- Stable -

Company presentation February 2016

13

METALS Vehicle density per 1,000 inhabitant – world (2000-2014)

554 557

732

152107

11 7

524576

800

230

128

29 10

572 592

310

195106

22

Germany Japan Brazil USA Russia China India

2007 2014

2000

Source: IHS Automotive

804

Company presentation February 2016

14

SEPARATION Mixed development of markets

Municipal Industrial Feed Biomass pelleting

Market

update

Investment activity at reasonable levels, mainly in developed markets

>> Reasonable demand in food processing and chemicals

>> Low project activity in

mining/minerals

Continuing at solid level Stable demand to continue

Competition Very fragmented market with global and regional competitors

Outlook Stable +/- Stable +/- Stable + Stable +

Long-term average growth

potential:

2-3% p.a.

Company presentation February 2016

1 ANDRITZ GROUP overview

2 Business areas – market update

3 Long-term goals and summary/outlook

Contents

16

Outlook for 2016 Investment activity expected to remain at last years‘ levels

Project activity for modernizations and new hydropower stations to continue at subdued level; satisfactory market activity for pumps to continue

Good project activity for modernizations and capacity increases to continue; solid pipeline for greenfield pulp mill projects

Low project and investment activity both in metalforming for automotive industry and steel/aluminum to continue

Low project activity in mining to remain; solid project activity in environment, food, chemicals and feed/biomass pelleting

stable +/- stable - stable - stable +/-

Company presentation February 2016

Long-term EBITA margin goal per business area

HYDRO

METALS

PULP & PAPER

SEPARATION

17

* Including restructuring expenses of ~40 MEUR for Schuler ** Schuler: 8.8%

Long-term goal:

8.5-9.0%

Long-term goal:

7.0-8.0%

Long-term goal:

8.0-9.0%

Long-term goal:

7.0-8.0%

14.7

Q3

Company presentation February 2016

4.7 5.2 5.3 5.1

6.3 6.1 6.1 6.4 6.5

5.1

7.2 7.2 6.9

2.9*

6.5 6.4 6.9

937 1.319 1.110 1.225

1.481 1.744

2.710

3.283 3.610

3.198 3.554

4.596

5.177 5,711*

5,859

4,589

6,204

0

1.000

2.000

3.000

4.000

5.000

6.000

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1-Q32015

2015E**

EBITA margin (%) Sales (MEUR)* Including Schuler as of March 1, 2013; no pro forma figures are available for the reference periods of previous years ** Consensus as of November 11, 2015

Target to continue long-term profitable growth Goal: further improve profitability with top-line sales growth

%

MEUR

Average 2005-2009:

6.0% Average 2000-2004:

5.3%

18

Medium-term: Increase EBITA margin to 7-8%

with sales growth

Company presentation February 2016