Stormy times 2009

Stable base Annual report

HYDRO FEED

biofuel

PULP

paper ENVIRONMENT

process

METALS Key figures of the ANDRITZ GROUP 2005-2009

(According to IFRS) Unit 2009 2008 2007 2006 2005 Order intake MEUR 3,349.3 3,705.3 3,749.5 2,891.0 1,974.6 Order backlog as of December 31 MEUR 4,434.5 4,277.4 3,843.3 3,397.1 1,695.6 Sales MEUR 3,197.5 3,609.8 3,282.5 2,709.7 1,744.3 EBITDA1) MEUR 218.2 278.2 250.7 197.7 130.9 EBITA2) (excl. restructuring expenses) MEUR 193.1 246.8 209.7 166.2 107.0 EBITA (incl. restructuring expenses) MEUR 164.1 233.2 209.7 166.2 107.0 Earnings Before Interest and Taxes (EBIT) MEUR 147.1 218.5 200.9 163.3 106.7 Earnings Before Taxes (EBT) MEUR 149.6 210.5 200.8 165.3 110.0 Net income (incl. non-controlling interests) MEUR 102.9 147.0 137.8 121.1 80.2 Cash flow from operating activities MEUR 345.7 255.0 33.1 143.1 237.3 Capital expenditure3) MEUR 70.5 69.7 57.0 45.7 26.7 Employees as of December 31 (excl. apprentices) - 13,049 13,707 12,016 10,215 5,943 Fixed assets MEUR 731.4 732.1 632.3 608.6 308.0 Current assets MEUR 2,577.9 2,354.2 1,877.1 1,777.5 1,083.3 Total shareholders' equity4) MEUR 663.5 577.4 481.6 414.5 328.8 Provisions MEUR 529.9 477.3 402.4 386.1 189.8 Other liabilities MEUR 2,115.9 2,031.6 1,625.4 1,585.5 872.7 Total assets MEUR 3,309.3 3,086.3 2,509.4 2,386.1 1,391.3 Equity ratio5) % 20.0 18.7 19.2 17.4 23.6 Net liquidity6) MEUR 677.9 408.9 246.5 365.7 383.9 Net debt7) MEUR -505.3 -242.9 -94.8 -216.9 -316.4 Net working capital8) MEUR -104.3 22.7 99.1 -93.6 -128.2 Capital employed9) MEUR 285.9 406.8 405.6 194.5 21.1 Gearing10) % -76.2 -42.1 -19.7 -52.3 -116.8 EBITDA margin % 6.8 7.7 7.6 7.3 7.5 EBITA margin (excl. restructuring expenses) % 6.0 6.8 6.4 6.1 6.1 EBITA margin (incl. restructuring expenses) % 5.1 6.5 6.4 6.1 6.1 EBIT margin % 4.6 6.1 6.1 6.0 6.1 Net income/sales % 3.2 4.1 4.2 4.5 4.6 ROE11) % 15.5 25.5 28.6 29.2 24.3 EV12)/EBITDA MEUR 6.5 1.9 7.6 9.1 6.3 Depreciation and amortization/sales % 2.0 1.5 1.4 1.3 1.4 Impairment resp. amortization goodwill/sales % 0.2 0.2 0.1 0.0 0.0

1) Earnings Before Interest, Taxes, Depreciation, and Amortization 2) Earnings Before Interest, Taxes, Amortization of identifiable assets acquired in a business combination and recognized separately from goodwill at the amount of 9,109 TEUR (2008: 7,862 TEUR) and impairment of goodwill at the amount of 7,922 TEUR (2008: 6,783 TEUR) 3) Additions to intangible assets and property, plant, and equipment 4) Total shareholders’ equity incl. non-controlling interests 5) Total shareholders’ equity/total assets 6) Cash and cash equivalents plus marketable securities plus fair value of interest rate swaps minus financial liabilities 7) Interest bearing liabilities incl. provisions for severance payments, pensions, and jubilee payments minus cash and cash equivalents and marketable securities 8) Non-current receivables plus current assets (excl. cash and cash equivalents as well as marketable securities) minus other non-current liabilities and current liabilities (excl. financial liabilities and provisions) 9) Net working capital plus intangible assets and property, plant, and equipment 10) Net debt/total shareholders’ equity 11) ROE (Return On Equity): Net income/total shareholders’ equity 12) EV (Enterprise Value): market capitalization based on year-end closing price minus net liquidity

Development of the ANDRITZ share since the IPO

1,000%

A June 2001: Initial Public Offering at 5.25 Euros per share ANDRITZ C 800% B June 2003: Secondary Public Offering at 5.69 Euros per share C Share price at year-end 2009: 40.25 Euros per share

600%

400% ATX

200% A B 100%

June 2001 2002 2003 2004 2005 2006 2007 2008 2009

Relative share price performance of the ANDRITZ share versus the ATX since the IPO Key figures of the business areas 2005-2009

HYDRO Unit 2009 2008 2007 2006 2005 Order intake MEUR 1,693.9 1,543.4 1,216.1 585.4 71.5 Order backlog as of December 31 MEUR 2,894.5 2,590.1 1,954.9 1,659.5 60.5 Sales MEUR 1,378.0 1,205.9 910.0 467.9 52.7 EBITDA MEUR 120.9 105.7 66.3 35.7 4.8 EBITDA margin % 8.8% 8.8% 7.3% 7.6% 9.1% EBITA MEUR 100.5 87.9 52.2 27.6 2.6 EBITA margin % 7.3% 7.3% 5.7% 5.9% 4.9% Capital expenditure MEUR 44.5 35.0 25.4 13.5 3.4 Employees as of December 31 - 5,993 5,606 4,390 3,678 474 pulp & paper Unit 2009 2008 2007 2006 2005 Order intake MEUR 923.0 1,033.8 1,406.4 1,432.4 1,017.0 Order backlog as of December 31 MEUR 778.7 752.8 1,060.4 1,124.4 950.4 Sales MEUR 903.3 1,326.6 1,462.2 1,304.2 1,032.9 EBITDA MEUR 42.0 84.5 105.3 89.6 76.1 EBITDA margin % 4.6% 6.4% 7.2% 6.9% 7.4% EBITA MEUR 17.5 66.3 87.8 75.9 63.6 EBITA margin % 1.9% 5.0% 6.0% 5.8% 6.2% Capital expenditure MEUR 14.9 20.2 21.8 21.7 13.6 Employees as of December 31 - 4,239 5,102 4,843 3,863 3,018 metals Unit 2009 2008 2007 2006 2005 Order intake MEUR 296.2 611.5 636.4 401.9 444.8 Order backlog as of December 31 MEUR 564.1 736.2 631.5 403.7 458.9 Sales MEUR 473.4 566.2 408.0 450.5 275.9 EBITDA MEUR 23.2 42.6 33.1 33.4 18.2 EBITDA margin % 4.9% 7.5% 8.1% 7.4% 6.6% EBITA MEUR 20.5 40.1 30.6 31.1 15.9 EBITA margin % 4.3% 7.1% 7.5% 6.9% 5.8% Capital expenditure MEUR 2.0 4.3 3.2 2.3 2.2 Employees as of December 31 - 971 996 880 819 749 environment & process Unit 2009 2008 2007 2006 2005 Order intake MEUR 305.4 361.2 346.9 344.2 340.1 Order backlog as of December 31 MEUR 139.6 151.8 161.1 179.3 202.2 Sales MEUR 322.6 366.6 364.4 366.5 289.2 EBITDA MEUR 29.3 32.1 30.8 25.9 22.0 EBITDA margin % 9.1% 8.8% 8.5% 7.1% 7.6% EBITA MEUR 24.6 27.3 25.7 20.9 17.7 EBITA margin % 7.6% 7.4% 7.1% 5.7% 6.1% Capital expenditure MEUR 5.7 7.4 4.9 6.5 6.6 Employees as of December 31 - 1,329 1,437 1,349 1,324 1,213 feed & biofuel Unit 2009 2008 2007 2006 2005 Order intake MEUR 130.8 155.4 143.7 127.1 101.2 Order backlog as of December 31 MEUR 57.6 46.5 35.3 30.2 23.6 Sales MEUR 120.2 144.5 137.8 120.6 93.6 EBITDA MEUR 2.8 13.3 15.2 12.9 9.8 EBITDA margin % 2.3% 9.2% 11.0% 10.7% 10.5% EBITA MEUR 1.0 11.6 13.4 10.6 7.2 EBITA margin % 0.8% 8.0% 9.7% 8.8% 7.7% Capital expenditure MEUR 3.4 2.9 1.7 1.7 0.9 Employees as of December 31 - 517 566 553 531 489 Global challenges Companies all over the world have been confronted with exceptional challenges as a result of the finan- cial and economic crisis. Ad- ditionally, such central topics as globalization or climate and envi- Contents ronmental protection also present global challenges that have to be 02 answered. Company profile, vision, and strategy The day-to-day business challenges for ANDRITZ.

04 andritz’s answers ‘We want to keep on growing’ This annual report relates how Interview with ANDRITZ President and CEO, Wolfgang Leitner: the ANDRITZ GROUP stood its How strongly has the financial and economic crisis affected ground and developed in 2009 in the company? How has ANDRITZ dealt with this challenge? And what are the expectations and strategies for 2010? the face of these challenges – and how it tackles day-to-day challen- 06 ges in order to achieve its goals 200-ton challenge of world market leadership and 7.4 meters in diameter, 200 tons in weight: ANDRITZ HYDRO long-term, profitable growth. delivers five gigantic Francis turbine runners to one of the world’s largest hydropower stations in Venezuela.

10 Growth on the Horizon(te) Technology for sustainable, environmentally efficient solutions: ANDRITZ PULP & PAPER supplied the world’s largest single pulp production line for the Horizonte pulp mill, Brazil.

14 Financial year 2009 Satisfactory development in a difficult environment: the key financial figures at a glance.

16 The ANDRITZ share Solid performance in spite of the financial and economic crisis.

18 Executive and Supervisory Boards 10 The ANDRITZ business areas HYDRO 20 PULP & PAPER 30 METALS 40 ENVIRONMENT & PROCESS 48 FEED & BIOFUEL 56

62 Manufacturing How ANDRITZ deals with fluctuations in manufacturing workload.

63 Human Resources Management Human Resources development for 13,049 employees.

64 Automation The global network of ANDRITZ AUTOMATION.

66 Locations Environmental and Contact data of all ANDRITZ locations. climate protection in print ANDRITZ supplies its customers with energy-efficient and eco-friendly technologies. More than 50% of Group sales are generated from the sale 70 of systems and process technologies used to generate energy from sus- Glossary tainable resources. Thus, it goes without saying that the ANDRITZ annual Explanation of technical and financial terms. report was produced and printed in accordance with the highest require- ments in terms of environmental and climate protection. By the way, the paper (Revive paper for the inside pages, and Algro paper for the cover 72 of this annual report) is also produced Service for shareholders on paper machines using technologies Benefit from the advantages of the ANDRITZ Shareholders’ Club. by ANDRITZ PULP & PAPER. Ident-Nr. A-10073 02

World market leadership and growth: ANDRITZ’s day-to-day challenges

Import acquisitions International technology Group ANDRITZ ranks among since 1990 at a glance the global market leaders in all five of its business areas. One of the Group’s overall strategic goals HYDRO is to consolidate and extend this position. 2006 VA TECH HYDRO At the same time, profitable long-term 2007 Tigép growth should be secured. 2008 GE Hydro 2008 GEHI (Joint Venture)

PULP & PAPER 1990 Sprout-Bauer 1992 Durametal World market leadership 1994 Kone Wood 1998 Kvaerner Hymac Company profile and vision 1999 Winberg The ANDRITZ GROUP is a globally 2000 Ahlstrom Machinery 2000 Lamb Baling Line leading supplier of plants and ser- 2002 ABB Drying vices for the hydropower, pulp and 2003 IDEAS Simulation paper, metals, and other special- 2003 Acutest Oy ized industries (solid/liquid sepa- 2003 Fiedler ration, feed and biofuel) and has 2005 Cybermetrics the goal to become the world 2005 Universal Dynamics Group market leader in all of the mar- 2006 Küsters kets it serves. 2006 Pilão 2007 Bachofen + Meier Concentrate on existing 2007 Sindus growth markets 2008 Kufferath All five ANDRITZ business areas 2009 Rollteck serve markets with long-term 2009 Rieter Perfojet* and sustained growth poten-

METALS tial. Within these markets, the 1997 Sundwig Group focuses on rapidly grow- 1998 Thermtec ing segments, e.g. renewable 2000 Kohler energy sources (hydropower and 2002 Selas biomass), stainless steel, or special 2004 Kaiser paper grades (tissue). ANDRITZ’s 2005 Lynson long-term goal is to generate more 2008 Maerz than 50% of its sales from products related to renewable energies. ENVIRONMENT & PROCESS 1992 TCW Engineering Global presence 1996 Guinard 2002 3SYS ANDRITZ serves globally acting companies 2004 Bird Machine all over the world. In order to meet custom- 2004 Netzsch Filtration ers’ needs as best and as quickly as possible, 2004 Fluid Bed Systems from ANDRITZ has a global presence with over 120 lo- VA TECH WABAG cations (including production facilities, service 2005 Lenser Filtration and sales companies). The Group’s goal is to 2006 Contec Decanter further strengthen local service presence close 2009 Delkor Capital Equipment to its customers. The research 2009 Frautech and development Research and development activities focus on making FEED & BIOFUEL ANDRITZ is among the technological leaders in ANDRITZ the technologically 1995 Jesma-Matador all five of its business areas and invests heavily in preferred supplier. Thus, the main goal is 2000 UMT research and development. On average, approxi- to develop customized technologies that enhance 2005 Chemes Strojarne mately 3% of sales are invested in research and productivity of customer’s plants, minimize operat-

* Subject to approval of anti-trust development every year, and over 300 employees ing costs, and maximize energy efficiency and en- authorities. work in the Group’s research centers. vironmental protection. Company profile, vision, and strategy 03

Growth Global presence

EUROPE All strategic measures are focused on maintain- Austria: Graz (headquarters of the ing profitable growth in the long-term. With this ANDRITZ GROUP), Linz, Vienna, Weiz Czech Republic: Ceske Budejovice, in mind, ANDRITZ is pursuing three overall stra- Hradec Králové, Prague Denmark: tegic goals: Esbjerg Finland: Helsinki, Hollola, Kotka, Savonlinna, Tampere, Varkaus France: Asnières-sur-Seine, Châ- 1. Increasing sales by an average of 10% per teauroux, Châtellerault, Grenoble, annum, based on organic expansion, mainly Haguenau, Saint Martin Le Beau, by research and development, as well as Vélizy-Villacoublay Germany: Bretten-Gölshausen, Cologne, Düren, acquisitions. ANDRITZ continues to look Düsseldorf, Hemer, Holzmaden, Kre- out for opportunities to acquire compa- feld, Mettmann, Ravensburg, Regens- nies and businesses that complement burg, Selb, Senden Great Britain: its existing range of products, process Belper, Doncaster, Hull, Newcastle- under-Lyme Hungary: Tiszakécske technologies, and services. The goal Italy: Schio (Vicenza) The Nether- is to be a single-source supplier with lands: Den Helder, Geldrop, Rotter- full-line capabilities in all business dam Norway: Jevnaker Poland: Warsaw Romania: Sibiu Russia: areas. In the past decade, sales Moscow, St. Petersburg Slovakia: of the Group have increased by Humenné, Levice, Spišská Nová Ves approximately 15% per annum. Spain: Barcelona, Madrid Sweden: Hedemora, Karlstad, Kristinehamn, Nälden, Örnsköldsvik, Stockholm, 2. Achieving profitability (EBITA Växjö, Vallentuna Switzerland: margin) of 7% on average Bülach, Jonschwil, Kriens, Vevey, Wohlen, Zurich Turkey: Ankara over the cycle. In the past ten Ukraine: Kiev years, the average EBITA mar- gin has seen a steady increase. NORTH AMERICA Canada: Brantford, Edmonton, Whereas the EBITA margin av- Lachine, Nanaimo, Peterborough, erage was 5.3% from 2000 to Pointe Claire, Prince George, Rich- 2004, this figure increased to mond, Saskatoon, Stoney Creek, Terrace Mexico: Morelia, Veracruz 6.3% (excl. restructuring ex- USA: Alpharetta, Arlington, Belling- penses) from 2005 to 2009. ham, Canonsburg, Charlotte, Decatur, Glens Falls, Janesville, Lakeland, Montoursville, Muncy, Pell City, 3. Extending the service portfolio Roswell, San Leandro, Scott Depot, in order to help customers achieve Spartanburg, Springfield, Tualatin, their goals in terms of productivity, Walpole profitability, and sustainability. SOUTH AMERICA Brazil: Araraquara, Barueri, Campi- nas, 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

CHINA Beijing, Foshan, Hangzhou, Shanghai, + + Zhejiang % % ASIA (excl. China) 10 India: Bangalore, Chennai, Haryana, ANDRITZ has set itself the In the15 past decade, sales of the Mandideep, New Delhi Indonesia: strategic goal of increasing its ANDRITZ GROUP have grown by Jakarta Iran: Tehran Japan: Tokyo sales by an average of 10% p.a. approximately 15% p.a. on average Malaysia: Kuala Lumpur, Selangor Philippines: Makati City, Manila Singapore: Singapore Taiwan: Taipei Thailand: Bangkok Vietnam: Hanoi, Ho Chi Minh City

Others The ANDRITZ GROUP locations, with all contact data, are listed from page 66 Australia: Victoria, New South Wales onwards of this annual report and in the Internet at www.andritz.com/locations South Africa: Johannesburg 04

ANDRITZ President and CEO Wolfgang Leitner: We want to keep on growing

The global financial and economic crisis triggered in 2008 by speculative bank transactions continued in 2009. After the economy had reached its trough in spring of 2009, the first signs of economic stabilization and improvement were noted in the middle of the year. How did ANDRITZ experience 2009, what were the main challenges from the managerial point of view? And what are the expectations and strategies for 2010? Answers to this and more from ANDRITZ AG’s President and CEO, Wolfgang Leitner.

What effect did the continuing economic cri- the paper and board machines market was com- sis have on ANDRITZ in 2009? What were the missioned successfully for Hebei Yongxin Paper. challenges and how were they dealt with? These important achievements and references As expected, 2009 was not an easy year for strengthen our market position in the continuing ANDRITZ. All in all, however, I believe we have difficult competitive environment. mastered the crisis well because, on the one hand, we implemented appropriate operative The world’s economy is showing clear signs measures in good time, and on the other hand, of recovery. Does this mean that ANDRITZ we were able to limit the overall impact on the has weathered the storm? What develop- ANDRITZ GROUP significantly due to our broad ments do you expect for 2010? basis of different end customer industries. The Personally, I feel that the change of mood has HYDRO business area proved to be very stable, come too soon in the wake of the lows recorded with its hydropower plant equipment practically in the spring of 2009. I fear that the developments not suffering from the global economic crisis, thus on the international stock exchanges have rushed reaching a very favorable development of order much ahead of the real economy and that we can intake. As expected, the PULP & PAPER and still expect setbacks. In addition, I have my doubts METALS business areas recorded a substantial as to whether the finance sector has learned decline in order intake as a result of the significant anything from the crisis. Renewed speculative decline of project and investment activity world- financial transactions could once again rock the wide. However, due to the broad basis of our still fragile financial and economic system. And business with a wide range of customer groups, although there are signs of the situation stabi- our substantial cash reserves, and our sound lizing in some segments of industry, I do not ex- balance sheet, we were able to keep ANDRITZ pect a sustained upswing in business develop- on a stable financial course. ment yet, particularly in our PULP & PAPER and METALS business areas, for 2010 – possibly As expected, 2009 We have made capacity adjustments and imple- towards the end of the year, if at all. Only when was not an easy mented restructuring measures to adjust our our customers see a clear rise in demand and year for ANDRITZ. cost and organizational structures to the difficult thus can expect adequate utilization of capacity economic environment. These measures will also will they again embark more frequently on larger All in all, however, make the Group more competitive after the crisis; investments in modernization and capacity ex- I believe we have that is why it was particularly important for us pansion projects. mastered the to continue our investment activities – above all crisis well. in modernization of manufacturing locations and What targets and strategies is ANDRITZ pur- optimization of process solutions – and to forge suing in 2010? What are the challenges? ahead with our research and development activi- The challenge is to come through these difficult ties, particularly in the renewable energies sector. times by implementing appropriate operative measures and at the same time preparing our- On the subject of challenges, I would also like selves as best possible for a sustained economic to mention two very important customer projects upswing. That is the reason why we certainly will that we completed successfully in 2009 thanks to not be taking any actions that limit our business the good cooperation between various ANDRITZ opportunities in the long term. business areas. In Brazil, we started up the world’s largest single-line pulp production plant In view of the unchanging difficult economic for Fibria, the worldwide leader for market pulp. environment and the lack of economic visibility And in China, the first complete packaging paper in many of our end-user industries, it is essential line that ANDRITZ has supplied since reentering that we continue with the structural improvement Interview with Wolfgang Leitner 05

ANDRITZ’s President and CEO Wolfgang Leitner:

All measures set in the face of the global financial and economic crisis will help us to enhance our com- petitiveness so that ANDRITZ emerges from the present crisis stronger.

measures in 2010. At the same time, however, we more efficient. All of these measures will help us will continue to seek out opportunities for further to enhance our competitiveness so that ANDRITZ growth – we want to keep on growing. On the emerges from the present crisis stronger. one hand, we will forge ahead with our research and development activities so that we can offer At this point, I would like to thank our employees our customers more powerful plants with greater for their excellent commitment. My thanks go also energy efficiency. On the other hand, we will also to our customers, business partners, and share- continue to look out for potential acquisitions in holders for the trust they placed in ANDRITZ in 2010 that will further complement our product 2009. We will continue to direct all our efforts portfolio. Not least, we will make targeted invest- towards ensuring the best possible development ments to further modernize our manufacturing for the ANDRITZ GROUP. facilities and make our internal processes even 06

200-ton challenge

Modernization of the Guri II hydropower plant in Venezuela – ranked among the largest worldwide – is one of the greatest technological and logistic challenges in the 170-year history of ANDRITZ HYDRO. At the end of 2009, the first of a total of five new Francis turbine runners was supplied from Germany to Venezuela. Weighing 200 tons each and with a diameter of 7.4 meters, these are the most powerful and largest runners ever to be manufactured by ANDRITZ HYDRO. Hydropower plant Guri II 07

Venezuela, Guri dam

Caracas

Guri

The customer The state-owned Venezuelan utility company, Electricidad del Caroní (EDELCA) operates three large hydropower plants with an overall output of some 15,500 MW and accounts for 70% of Venezuela’s electricity production.

The project Plant: Guri II – Central hidroeléctrica Simón Bolívar, Venezuela Construction: 1963-1969, 1976-1986 (expansion) Output: 10,300 MW ANDRITZ HYDRO’s scope of supply: modernization of five Francis turbine runners by 2013 08 Five of these enormous Francis turbine runners are manufactured in Germany.

Venezuela, Guri dam

Caracas

Guri he Guri power plant (with a total out- spection system was also installed so that the T put of 10,300 MW) will cover over 50% runners could be ideally positioned for welding of Venezuela’s entire power demand. On work. With this equipment, the 200-ton runner behalf of the Venezuelan utility company can be turned through its own axis and also tilted Electricidad del Caroní (EDELCA), ANDRITZ in the horizontal plane at the same time. HYDRO is to modernize five machines in the Guri II project by 2013 and thus increases the Top quality combined with cost efficiency plant’s output by around 10%. A high-performance welding process (electro- slag welding) is used to weld the runner blades 200 people from eight different countries to the crown and band. This high-quality welding involved in turbine disassembly process can handle extremely large welding vol- At the beginning of the project, all plant com- umes while maintaining cost efficiency – around ponents were disassembled and thoroughly 4.5 tons of high-alloyed welding filler will be need- checked. Those parts that can be reused were ed for each of the Guri II runners. refurbished on site together with local partners, while parts in need of replacement were manu- 11,000 kilometer journey from factured new, complying with the most stringent Germany to Venezuela international quality standards. Over 200 people After a two-month journey, the first of the turbine from eight different countries were involved on the runners to be manufactured finally arrived from construction site in disassembly and refurbishing Ravensburg at the Guri II power plant near Puerto work alone. Ordaz in the autumn of 2009. Weeks were spent on preparing the extensive customs formalities The comprehensive project documentation also and frequently difficult transport stages: had to be compiled when the project began – A 32-axle articulated truck with 1,400 horse- it currently comprises more than 500 technical power carries the runner over a defined heavy- drawings and documents, each in English and load route through southern Germany in several Spanish, and provides the basic information for night runs; a highway has to be partly closed for the complex approval process. several hours. The journey continues by inland waterway on Manufacture of a giant: 3.7 meters high – the Neckar and Rhine rivers up to the port of 7.4 meters in diameter – weighing 200 tons Rotterdam, Netherlands. In 2009, the first of a total of five new turbine After crossing the Atlantic, the route continues runners for Guri II was produced in a three-shift for some 350 kilometers along the inland water- The two-month long operation in Ravensburg, Germany – an enor- way leading up the Orinoco River towards the journey by the turbine mous challenge, even for one of the world’s lead- Guri reservoir. runner from Germany to ing manufacturing locations in the hydropower For the final stretch to the power plant, two Venezuela started on a sector. Due to the exceptional dimensions of the bridges have to be reinforced in order to guar- 32-axle articulated truck. runners, a new, high load-bearing, articulated in- antee safe onward transport by road. Hydropower plant Guri II 09

Hydropower is the main source of renewable energy Around one-fifth of electricity produc- tion worldwide comes from renewable energy sources, approximately 90% thereof from hydropower. Thus, hydro- power accounts for approximately 18% of overall electricity production, making it by far the most important source of renewable energy (wind and solar: ap- proximately 2%; Source: IHA/IEA).

More than 50% of Venezuela’s energy consumption are generated at the Guri hydropower plant Modernization of the power plant taps previously unused energy reserves in an eco-friendly project, thus making an effective contribution towards reduc- ing global warming and to worldwide environmental protection. The mod- ernization will increase the plant’s out- put by around 10%. 10

Growth on the Horizon(te)

By combining the organizations of the former Aracruz Celulose and Votorantim Celulose e Papel, the new company Fibria has become the world’s largest mar- ket pulp producer (nearly six million tons per year). The company has a strong tradition and a reputation for maintaining technically modern and environmen- tally sound mills. Fibria’s Horizonte mill in Brazil – a greenfield 1.3 million ton- per-year bleached market pulp mill near Três Lagoas – is the world’s largest single pulp production line, which was delivered by ANDRITZ PULP & PAPER. Horizonte pulp mill 11

Brazil, Três Lagoas

Brasilia Três Lagoas

São Paulo

The customer With an annual production capacity of six million tons per year, Fibria is the world’s largest market pulp producer. Its operations are entirely based on renewable forests: Fibria has a forest base totaling 1.3 million hectares, of which 461,000 hectares are set aside for permanent preservation.

Fibria has been included in the Dow Jones Sustainability Index (DJSI World) in 2009, a selection of the world’s companies with the best cor- porate sustainability practices. In this index, Brazil is represented by seven companies, with Fibria being the only one from the forestry and paper sector.

The project Plant: Horizonte mill in Três Lagoas, Mato Grosso do Sul, Brazil. Capacity: 1.3 million ton per year greenfield market pulp mill – the world’s largest single pulp line. ANDRITZ PULP & PAPER’s scope of supply: technologies for cooking, washing, screening, and bleaching; pulp drying and baling; cooking liquor production; dynamic process simulation. 12

Brazil, Três Lagoas

Brasilia ibria continuously looks out for growth oppor- Fibria’s selection of ANDRITZ PULP & PAPER

Três Lagoas F tunities and is making investments in addi- technologies followed a sophisticated review of São Paulo tional capacity to feed the growing global demand the world’s best available technologies – and their for eucalyptus pulp. ‘Initially, the Horizonte project own experiences in their other mills. ‘We knew was conceived as a 900,000 ton-per-year mill,’ from the first week of operation that this mill can says Francisco Valerio, Director of Industrial Op- achieve its design capacity,’ says Valerio. erations and Engineering of Fibria. Fast start-up for faster return on investment Increasing capacity without Time is money. This is certainly true for large capi- much additional investment tal investments. The sooner a mill can be ramped During initial discussions with Fibria, ANDRITZ up, the faster sales revenues can be generated to put forth a proposal to increase production ca- create cash flow. Fibria signed the contract with pacity to a level of 1.3 million tons without much ANDRITZ in April 2007. ‘Twenty-three months lat- additional capital investment by the customer. er, we started up this plant and the ramp-up was This solution significantly lowered investment fantastic,’ Valerio explains. ‘In August 2009, we cost per ton of pulp. Because of this, all the equip- produced 99.5 percent prime pulp. In September ment is among the largest ANDRITZ has ever it was 100 percent. I’ve been working in this in- built. ‘We had not installed a continuous cook- dustry for 40 years, thus I know: to reach 100 per- ing system this size before, but the technology cent is an outstanding achievement. In October, was well proven in other installations,’ says Karl the performance test run for the ANDRITZ drying Hornhofer, Head of ANDRITZ PULP & PAPER’s and baling plant was successfully completed – Capital Systems unit and member of ANDRITZ’s and a new production record was set.’ Executive Board. ‘It was only a matter of scaling up to this world-record size.’ The IDEAS simulator from ANDRITZ was an im- portant tool to train Fibria employees, according Best available technology for to Edevar Lopes, Fibria’s automation specialist. sustainable, eco-efficient solutions ‘The simulator has two main tasks: First to check ‘It’s a different industry than when I started out the distributed control system before start- 40 years ago,’ Francisco Valerio says. ‘Stable up, and second as a tool for operator training.’ production is still a main goal, but equally impor- One thing that impresses Lopes is that the simu- tant are the aspects of sustainable production. lator’s screens look exactly like the screens on the We have to do a very sophisticated analysis to actual control system. ‘There is basically no differ- determine if we have the right technology to sup- ence to the operators between operating virtual port an eco-optimized, sustainable project.’ equipment and the real equipment.’

What once was the equipment lay-down for the construction crews at the mill stands empty to- day, but not for too long. Fibria has already an- nounced its intent to build a second line at Três Lagoas, in less than five years if the markets hold. ‘Over the next decade, we are planning three big projects,’ Valerio says. ‘After this, I expect our production to be around ten million tons per year. We are learning all the time; we can improve all the time.’

The control systems, Complicated project logistics and a strike used to operate the plant. The mill is about 700 kilometers from the ocean port where the shipments came in to the mill’s lo- cation in the interior State of Mato Grosso do Sul. In the middle of the supply, there was a strike by federal customs employees. Locally, the State’s customs officials had not dealt with pulp and paper components before and held shipments at the border to be certain about the import/tax clas- Horizonte pulp mill 13

Technology of world-record size: the wet end of the dewatering sifications for components coming from China, machine – part of ANDRITZ’s Sweden, Finland, Germany, Austria, and the USA. scope of supply for Fibria.

Newton Kozak, ANDRITZ’s project manager from Curitiba, Brazil, and his team had their hands full. Considerable effort was expended to expedite equipment deliveries by educating local officials about the various components and technologies so that the right import duties could be assessed. ‘I can honestly say that both the customer and ANDRITZ worked as one team on this project,’ Kozak says. Valerio agrees: ‘It was like everyone worked in the same company. The same level Francisco Valerio, Fibria: of teamwork and commitment remained from engineering, to checkout, to commissioning, to Twenty-three months after signing the contract, we start- start-up.’ ed up the plant and the ramp-up was fantastic. In August 2009, we produced 99.5 percent prime pulp. In Septem- Chances for local communities ber it was 100 percent. I’ve been working in this industry ‘It’s exciting to create something where there was for 40 years and to reach 100 percent is an outstanding practically nothing before,’ says Daniel Rubega, achievement. In October, the performance test run for Fibria’s maintenance and commissioning engi- the ANDRITZ drying and baling plant was successfully neer. ‘Before 2006, there was nothing here but completed – and a new production record was set. eucalyptus trees – no other big industry or infra- structure.’ Most of the employees are from the With ANDRITZ PULP & PAPER’s technical solutions, local region and had never seen a pulp mill before. Fibria was able to lower investment cost per ton pro- As Valerio says, ‘We can’t just think inside the duced pulp. One was a digester which eliminated a mill walls. It is not desirable to have a nice forest costly separate impregnation vessel. ANDRITZ used and mill surrounded by communities where the its global network to source from China, India, Sweden, people are very poor. The communities must have Finland, Canada, Austria, and Brazil to reduce manu- a possibility to grow – a place where children can facturing costs. A global ANDRITZ team completed receive a good education, and where everyone the project successfully in terms of production require- can have a better life.’ ments, budget, and time schedule. 14

Financial year 2009: Satisfactory business development

ANDRITZ showed a solid business development in 2009 in spite of the global financial and economic crisis. As expected, sales and earnings were below the historic highs of the preceding year. In the face of the difficult economic environment, order intake was satisfactory, and the order backlog at the end of 2009 was higher than the record figure achieved in 2008. The Group’s net liquidity was increased substantially compared to the previous year.

Sales below record level of the previous year, This decrease is largely due to expenses for ca- FINANCIAL HYDRO business area remains strong pacity adjustments and operational restructuring PERFORMANCE Sales of the ANDRITZ GROUP amounted to – particularly in the PULP & PAPER business area 3,197.5 MEUR in 2009, thus 11.4% below – that were necessary due to the economic situ- the record figure for the previous year (2008: ation and amounted to approximately 29 MEUR, 3,609.8 MEUR). While the HYDRO business area as well as to the decline in sales. Excluding these achieved a significant increase in sales, sales in one-off expenses, the EBITA in 2009 amounts to the other business areas declined compared to 193.1 MEUR, equivalent to an EBITA margin of 2008 – particularly in PULP & PAPER. 6.0%. The adjustments and restructuring mea- sures are expected to yield substantial cost sav- Solid order intake in the face of a difficult ings in the future, which should have a positive im- economic environment pact on 2010 earnings and the years that follow. Despite the difficult global economic condi- tions, order intake of the Group in 2009, at Net income excluding non-controlling interests 3,349.3 MEUR, was only 9.6% below the high amounted to 96.8 MEUR (2008: 139.7 MEUR). level of the previous year (2008: 3,705.3 MEUR). This is mainly due to the very positive develop- Solid balance sheet structure, ment of the HYDRO business area, where or- substantially higher liquidity der intake rose by 9.8% to a new record level Total assets of the ANDRITZ GROUP as of of 1,693.9 MEUR (2008: 1,543.4 MEUR). In December 31, 2009 increased to 3,309.3 MEUR contrast, the other business areas – particularly (December 31, 2008: 3,086.3 MEUR). The eq- METALS – saw a decline in order intake com- uity ratio as of December 31, 2009 amounted to pared to the previous year. 20.0% (December 31, 2008: 18.7%).

Order backlog exceeds historic Liquid funds (cash and cash equivalents plus mar- high of the previous year ketable securities) amounted to 1,082.1 MEUR The order backlog of the ANDRITZ GROUP as of as of December 31, 2009 (December 31, 2008: December 31, 2009 amounted to 4,434.5 MEUR, 821.8 MEUR). Net liquidity (liquid funds plus fair an increase of 3.7% compared to the previ- value of interest rate swaps minus financial liabili- ous year’s high level (December 31, 2008: ties) increased to 677.9 MEUR, thus well above 4,277.4 MEUR). While the order backlog of the the value at the end of last year (December 31, HYDRO business area showed a strong increase, 2008: 408.9 MEUR). particularly the METALS business area recorded a decline. Capex and cash flow Investments in tangible and intangible as- Earnings significantly lower, mainly due to sets amounted to 70.5 MEUR in 2009 (2008: one-off restructuring expenses – positive 69.7 MEUR) and related largely to workshop cost savings impact expected for 2010 modernizations. The Group’s EBITA amounted to 164.1 MEUR in the period under review, significantly below Cash flow from operating activities amounted to the reference figure for the previous year (2008: 345.7 MEUR and was thus significantly higher than 233.2 MEUR). The profitability (EBITA margin) the previous year’s value (2008: 255.0 MEUR). amounted to 5.1% (2008: 6.5%). Financial year 2009 15

Important acquisitions complement the of separators for applications in the dairy and ANDRITZ product and service portfolio olive oil industries. Based on the know-how Important In the third quarter of 2009, ANDRITZ acquired acquired, ANDRITZ seeks to develop equip- Acquisitions Rollteck, Germany, a specialist in the design and ment for additional applications, which will manufacture of winders for the paper industry, open up interesting growth opportunities for the thus further complementing the product offerings ENVIRONMENT & PROCESS business area. for the pulp and paper industries. In addition to complete service, Rollteck produces core cutters Another acquisition in the fourth quarter of 2009 and components for winders. was Rieter Perfojet, a French company that man- ufactures machinery and systems for the prod- In the fourth quarter of 2009, ANDRITZ acquired uction of nonwovens. Rieter Perfojet’s products Delkor Capital Equipment, a South African manu- and technologies are used successfully all over the facturer of dewatering equipment (vacuum belt world for hydroentanglement of nonwovens. With filters, thickeners, filter presses, and screens), ANDRITZ Küsters in Krefeld, Germany, ANDRITZ predominantly for the mining industry. The prod- already has operations in the nonwovens sector. ucts of Delkor further extend the ANDRITZ prod- uct range for the mining industry and strengthen Note: ANDRITZ’s market position in South Africa. Delkor Capital Equipment, Frautech, and Rieter Perfojet are not included in the consolidated financial statements 2009 of the In addition, ANDRITZ acquired major assets ANDRITZ GROUP because official closing of these transactions of the Italian company Frautech, a producer was still pending as of the key date December 31, 2009.

Key financial figures

(MEUR) 2009 2008 +/- Sales 3,197.5 3,609.8 -11.4% EBITA1) (excl. restructuring expenses) 193.1 246.8 -21.8% EBITA (incl. restructuring expenses) 164.1 233.2 -29.6% Earnings Before Interest and Taxes (EBIT) 147.1 218.5 -32.7% Earnings Before Taxes (EBT) 149.6 210.5 -28.9% Net income 102.9 147.0 -30.0%

Key balance sheet ratios

Unit 2009 2008 Equity ratio % 20.0 18.7 Net liquidity2) MEUR 677.9 408.9 Net debt3) MEUR -505.3 -242.9 Net working capital4) MEUR -104.3 22.7 Capital employed5) MEUR 285.9 406.8 Gearing6) % -76.2 -42.1

Key cash flow ratios

Unit 2009 2008 Cash flow from operating activities MEUR 345.7 255.0 Capital expenditure7) MEUR 70.5 69.7 Free cash flow8) MEUR 285.6 187.5 Free cash flow per share9) EUR 5.5 3.6

1) Earnings Before Interest, Taxes, Amortization of identifiable assets acquired in a business combination and recognized Further data, facts, and figures relating separately from goodwill at the amount of 9,109 TEUR (2008: 7,862 TEUR) and impairment of goodwill at the amount of to the 2009 financial year are available 7,922 TEUR (2008: 6,783 TEUR) 2) Cash and cash equivalents plus marketable securities plus fair value of interest rate swaps minus financial liabilities 3) Interest bearing liabilities incl. provisions for severance payments, pensions, and jubilee in the annual financial report and in the payments minus cash and cash equivalents and marketable securities 4) Non-current receivables plus current assets (excl. Internet: reports.andritz.com/2009 cash and cash equivalents as well as marketable securities) minus other non-current liabilities and current liabilities (excl. financial liabilities and provisions) 5) Net working capital plus intangible assets and property, plant, and equipment 6) Net debt/total shareholders’ equity 7) Additions to intangible assets and property, plant, and equipment 8) Cash flow from operating activities minus capital expenditure plus payments from the sale of intangible assets and property, plant, and equipment 9) Free cash flow/total number of ANDRITZ shares 16

ANDRITZ share: Solid performance

Despite the global financial and economic crisis, the ANDRITZ share saw very satisfactory development in 2009, far outperforming the ATX, the leading in- dex of the Vienna Stock Exchange.

Significant rise in the ANDRITZ share price Free float by region SHARE PRICE The ANDRITZ share price rose by 111% in the (as of December 31, 2009) DEVELOPMENT period under review, thus once again outperform- ing the ATX (leading share index of the Vienna Switzerland: 5% Stock Exchange), which rose by approximately France: 5% 38% over the same period. Since the Initial Public Others: 15% Offering in June 2001, the ANDRITZ share price has increased almost eightfold, thus clearly out- performing the ATX.

The highest closing price for the ANDRITZ share was 41.94 Euro (November 16, 2009), while the lowest was 17.50 Euro (March 9, 2009).

Continuing good trading volume TRADING The average daily trading volume of the ANDRITZ UK: 35% VOLUME share (double count, as published by the Vienna Austria: 20% Stock Exchange) was 307,029 shares in the pe- USA: 10% riod under review (2008: 488,638 shares). The Germany: 10% highest daily trading volume was noted on Octo- Source: ANDRITZ estimate ber 23, 2009 (935,284 shares), the lowest trading volume on December 30, 2009 (69,320 shares). Shareholder structure Stable, well-balanced shareholder structure (as of December 31, 2009) SHARE- ANDRITZ has a very stable and well-balanced HOLDERS shareholder structure. Approximately 29% of the shares are owned by Certus Beteiligungs-GmbH, whose Managing Director is Wolfgang Leitner, President and CEO of ANDRITZ AG. With over 70% free float, ANDRITZ has a widely diversified shareholder structure consisting of institutional investors and retail shareholders. The majority of institutional investors come from the Anglo-Sax- on countries (particularly the UK and the USA), but also from Austria and Germany. Retail inves- Free float: 71% tors are mainly based in Austria and Germany. Certus (CEO): 29%

Basic data of the ANDRITZ share Financial calendar (preliminary) ISIN code AT0000730007 The financial calendar with March 26, 2010 Annual General First listing day June 25, 2001 updates, as well as information Meeting in Graz, Austria Types of shares no-par value shares, on the ANDRITZ share, can be March 30, 2010 Ex-dividend bearer shares found on the Investor Relations April 1, 2010 Dividend payment Total number of shares 52 million page at the ANDRITZ website: May 7, 2010 Results for the Authorized capital none www.andritz.com/share first quarter of 2010 Free float approximately 71% August 9, 2010 Results for the Stock exchange Vienna (Prime Market) first half of 2010 Ticker symbols Reuters: ANDR.VI; November 8, 2010 Results for the first Bloomberg: ANDR, AV three quarters of 2010 Stock exchange indices ATX, ATXPrime, WBI Share 17

High level of interest by investors Navia, where ANDRITZ PULP & PAPER very suc- In 2009, around 320 one-on-one meetings with cessfully started up a new recovery boiler and a INVESTOR institutional investors and financial analysts were new biomass boiler. RELATIONS held in Amsterdam, Boston, Brussels, Chicago, Denver, Dublin, Dusseldorf, Edinburgh, Frank- ANDRITZ again receives awards furt, Cologne, London, Luxembourg, Milan, Mu- for Investor Relations activities Free float by region nich, New York, Paris, Philadelphia, San Fran- The ANDRITZ GROUP has already received sev- (as of December 31, 2009) cisco, Stockholm, Tokyo, Toronto, and Zurich. eral awards for its Investor Relations activities since the Initial Public Offering in 2001, also for In addition, ANDRITZ presented at several inves- special achievements in Corporate Governance tor conferences, such as Cheuvreux’s German and Investor Relations online activities. Corporate Conference in Frankfurt, UniCredit’s International Investors Conference in Kitz- As part of the Vienna Stock Exchange Award bühel, Deutsche Bank’s Annual Pan European 2009, ANDRITZ once again received an award. Small & Mid Conference in London, RCB’s Insti- ANDRITZ took second place in the main cate- tutional Investors Conference in Zürs, Goldman gory, the ATX Prize, which is awarded to com- Sachs’ Small Mid Cap Symposium in London, panies in the leading index of the Vienna Stock Sal. Oppenheim’s European Midcap Forum in Exchange for the quality of their work in terms New York, JPMorgan’s Capital Goods Confer- of transparency and communication policy in the ence in London, HSBC’s Austrian Companies Austrian capital market. ANDRITZ took first place Conference in London, Deutsche Bank’s Ger- in this category last year. UK: 35% man & Austrian Corporate Conference in Frank- Corporate Governance furt and Tokyo, Erste Bank Group’s Investor As part of an annual survey of around 600 in- ANDRITZ complies with the rules of Conference in Stegersbach, RCB’s Austrian Day ternational investment fund managers, ANDRITZ the Austrian Corporate Governance in Frankfurt, Berenberg Bank’s European Confer- Investor Relations was voted once again among Code. The Corporate Governance ence in London, and Cheuvreux’s Pan-European the top three companies in the mechanical engi- report and all other information on Management Conference in New York. neering sector – just as in 2008. the subject are contained in the an- nual financial report 2009 and also ANDRITZ gave a presentation for private inves- Broad analyst coverage at: www.andritz.com/en/corporate- tors at the international Gewinn fair in Vienna. As of the end of 2009, eleven national and in- governance In addition, guided company site visits were ar- ternational banks and investment houses pub- ranged for investment clubs. lished research reports on ANDRITZ at regular For further information intervals (in alphabetical order): Berenberg Bank, please contact: The focus of this year’s ANDRITZ Capital Mar- Crédit Agricole Cheuvreux, Deutsche Bank, ANDRITZ Investor Relations ket Days – held in October 2009 in Spain – was Erste Bank, Goldman Sachs, HSBC, JPMorgan, Petra Wolf ANDRITZ’s ‘Expertise, technologies, and prod- Sal. Oppenheim, Raffeisen Centrobank, UBS, Phone: +43 (316) 6902 2722 ucts for the use of biomass in the pulp industry’. and UniCredit. [email protected] Participants also visited the pulp mill of ENCE in

Key figures of the ANDRITZ share Unit 2009 2008 2007 2006 2005 Earnings per share EUR 1.89 2.73 2.61 2.30 1.53 Dividend per share EUR 1.001) 1.10 1.00 0.75 0.50 Payout ratio % 52.9 40.3 38.3 32.6 32.6 Equity attributable to shareholders per share EUR 12.28 10.59 9.07 7.86 6.25 Highest closing price EUR 41.94 43.53 54.00 41.08 23.21 Lowest closing price EUR 17.50 15.96 35.80 23.13 14.15 Closing price at year-end EUR 40.52 18.16 41.45 41.08 23.21 Market capitalization at year-end MEUR 2,107.0 944.3 2,155.6 2,135.9 1,207.1 Performance % +111.0 -54.4 +2.6 +74.9 +62.8 ATX weighting at year-end % 4.3701 2.9209 2.3950 2.4080 1.8200 Average daily number of shares traded Share unit 307,029 488,638 452,909 355,580 335,972

Note: On May 3, 2007, the ANDRITZ share was split in a ratio of 1:4. Historical share price data were adjusted accordingly. 1) Proposal to the Annual General Meeting. Source: Vienna Stock Exchange 18

2 3 1 4 5

Executive Board

Pulp & paper Pulp & paper President hydro, metals, (Capital Systems) (Service & Units) and CEO feed & biofuel environment & process

2 Karl Hornhofer 3 Humbert Köfler 1 Wolfgang Leitner 4 Friedrich Papst 5 Franz Hofmann Joined ANDRITZ in 1996 Joined ANDRITZ in 1987 Joined ANDRITZ in 1987 Joined ANDRITZ in 1979 Joined ANDRITZ in 1999 as and held managerial posi- and held managerial posi- as CFO and has served as and held leading positions in member of the Executive tions in the PULP & PAPER tions in the PULP & PAPER President and CEO since manufacturing and logistics. Board. He is responsible business area. He was ap- business area. He was ap- 1994. His responsibilities He has been a member of for the METALS and the pointed as member of the pointed as member of the encompass central Group the Executive Board since ENVIRONMENT & PROCESS Executive Board in 2007 Executive Board in 2007 functions such as Human 1998 and is responsible business areas, as well and is responsible for the and is responsible for the Resources Management, for the HYDRO and the as Group-wide for Capital Systems segment Service & Units segment Controlling and Finance, FEED & BIOFUEL business Automation. of the PULP & PAPER busi- of the PULP & PAPER Treasury, Corporate Commu- areas, as well as Group-wide ness area and Group-wide business area and Group- nications, Investor Relations, for Manufacturing. Professional career: for Quality Management. wide for Procurement. Internal Auditing, Informa- Divisional Director at tion Technology, as well as Professional career: SMS Schloemann-Siemag Professional career: Professional career: Organization and Business Vice President of ANDRITZ AG, management con- Head of the Pulp and Head of the Paper Mill Process Development. Sprout-Bauer Inc., Direc- sultant at A.T. Kearney, Paper Machines division at Services division at tor of Manufacturing at researcher at Vereinigte ANDRITZ AG, Head of the ANDRITZ AG, Head of Professional career: ANDRITZ AG, Director of Deutsche Metallwerke. Pulp Drying Systems divi- the Mechanical Pulp- member of the Manag- Production Planning at sion at ANDRITZ AG, design ing Systems division at ing Board of AGIV AG, ANDRITZ AG. engineer at Austrian Energy. ANDRITZ AG, regional founder and President sales manager at ANDRITZ of GENERICON Pharma Sprout-Bauer GmbH, ex- GmbH, management con- port marketing manager sultant at McKinsey & Com- at Biochemie GmbH. pany, research chemist at Vianova/HOECHST. Company boards 19

2 3 4 5 1 6 7 8 9

Supervisory Board

Appointed Delegated members members

1 Kurt Stiassny 3 Peter Mitterbauer 5 Fritz Oberlerchner 7 Andreas Martiner (Chairman of the Supervisory Board) Chairman of the Managing Board of Deputy Chairman of the Managing Member of the CEO of Buy-Out Central Europe II MIBA AG; member of the Supervisory Board of STRABAG SE; member Supervisory Board of Beteiligungs-Invest AG; Chairman Board of ANDRITZ AG since 2003 of the Supervisory Board of ANDRITZ AG since 2001. of the Supervisory Board of and elected until the Annual General ANDRITZ AG since 2006 and ANDRITZ AG since 1999 and Meeting of ANDRITZ AG in 2014. elected until the Annual General 8 Martha Unger elected until the Annual General Other Supervisory Board functions: Meeting of ANDRITZ AG in 2011. Member of the Meeting of ANDRITZ AG in 2010. Chairman of the Supervisory Other Supervisory Board functions: Supervisory Board of Other Supervisory Board functions: Boards of ÖIAG (Österreichische member of the Supervisory Boards ANDRITZ AG since 2007. member of the Supervisory Board Industrieholding AG) and FFG of Chemson Polymer-Additive AG, of Palfinger AG (until November 30, (Österreichische Forschungsförde- STRABAG AG Austria, STRABAG 9 Brigitta 2009), Chairman of the Supervi- rungsgesellschaft m.b.H.); member AG Germany, and STRABAG Zrt.; Wasserbauer sory Board of Tiroler Röhren- und of the Supervisory Boards of Ober- Chairman of the Supervisory Member of the Metallwerke AG, and Chairman of bank AG and Rheinmetall AG. Boards of STRABAG A.S. and Supervisory Board of the Supervisory Board of Chemson STRABAG Sp.z.o.o.. ANDRITZ AG since 2000. Polymer-Additive AG. 4 Christian Nowotny Full-time professor at the Uni- 6 Klaus Ritter 2 Hellwig Torggler versity of Economics in Vienna; President and CEO of AVI Alpen- (Deputy Chairman of the member of the Supervisory Board ländische Veredelungs-Industrie Supervisory Board) of ANDRITZ AG since 1999 and Ges.m.b.H, EVG Entwicklungs- und Attorney-at-law; Deputy Chairman of elected until the Annual General Verwertungs-Gesellschaft m.b.H., the Supervisory Board of ANDRITZ AG Meeting of ANDRITZ AG in 2013. and Stahl- und Walzwerk Marienhütte since 2004; member of the Supervi- Other Supervisory Board functions: Ges.m.b.H.; member of the Supervi- sory Board of ANDRITZ AG since 2000 member of the Supervisory Boards sory Board of ANDRITZ AG since 2004 and elected until the Annual General of CA Immo AG (until May 13, 2009), and elected until the Annual General Meeting of ANDRITZ AG in 2014. Allianz KAG, and Generali Drei Meeting of ANDRITZ AG in 2012. Other Supervisory Board functions: Banken Holding AG. Other Supervisory Board functions: member of the Supervisory Boards none. of Mondi AG, Mondi Services AG, A.S.A Abfall Service AG, and FIMBAG Finanzmarktbeteiligung Aktiengesell- schaft des Bundes; Deputy Chairman of the Supervisory Board of Theater in der Josefstadt Betriebsges.m.b.H.. Statement of the management 2009 was a very successful year for us. A new record in order intake shows that we rank among the top suppliers worldwide for hydropower equipment. The market for hydropower equipment developed very favor- ably in 2009, practically unaffected by the overall economic environment. The rising demand for electric power, particularly in the emerging countries, and the need to modernize exist- ing power stations in Europe and North America were – and still are – the main driving forces in this growth market. By constantly developing our technologies, we want to, and will, participate in this growth.

Managers of the HYDRO business area (left to right): Manfred Wörgötter Pumps Michael Komböck Compact Hydro, Service & Rehab Harald Heber Turbo Generator, Finance, Supply Chain Wolfgang Semper Large Hydro

22 HYDRO 23

Power ANDRITZ HYDRO is a leading global supplier of turnkey electromechanical systems and services for new hydropower stations. In addition, reha- bilitation and upgrading of existing plants are of- fered.

Further fields of activity are development, design, and manufacture of pumps for selected applica- tions (e.g. for water transport, in the energy sec- tor, and in the pulp and paper industry) and of tur- bo generators for gas and steam power plants. 24

Project activity in the hydropower sector during As a result of the rapid economic growth and MARKET 2009 remained very high worldwide. sharp rise in energy demand, there are numerous DEVELOPMENT new hydropower projects in the development and Investment activity in Europe and North America realization phases in South America (particularly focused on modernization, rehabilitation, and ca- in Brazil) and in Asia (mainly in India and China). pacity increases for existing hydropower plants. Due to the high average age of the installed base In the cooling water pumps sector, increasing in these regions, there is an increasing demand investments in new plants by the power gen- for refurbishment of installed equipment. In addi- erating industry led to a rise in project activity. tion, the rising demand for peak electricity and the In Asia, particularly in India, project activity for capacity increases in wind energy in Europe have irrigation and drinking water pumps continued led to additional investments in pumped storage to be strong. Project activity was very favorable power stations in order to ensure stability of the worldwide in the centrifugal pumps sector, ex- European electric grid. In North America, there cept for supplies to the pulp and paper indus- was a marked increase in project activity following try as a result of the generally difficult economic

the introduction of trade in C02 certificates. environment.

To further strengthen its local market position in shipped to the site. Due to its exceptional size MAJOR China, ANDRITZ HYDRO and Chengdu Tianbao (7.4 m in diameter) and weight of approximately EVENTS Heavy Industry Corporation Ltd., China estab- 200 t, transport of the turbine 11,000 km from lished a joint venture concentrating on the manu- the ANDRITZ HYDRO manufacturing facilities in facture of heavy machinery at the Chengdu loca- Ravensburg, Germany, to Venezuela in only two tion. ANDRITZ HYDRO now has four locations in months presented a special challenge (see report China and can thus offer the entire product and on page 6). service portfolio for the rapidly expanding hydro- power market in China. The Glendoe 100 MW power station, run by the Scottish utility company Scottish and Southern At the Guri II power station in Venezuela, the first Energy (SSE), was officially handed over to the of a total of five Francis turbines to be supplied customer. Glendoe is the first large-scale hydro- successfully passed works inspection and was power station to be built in Scotland for 50 years.

Mechanical energy becomes electric power: the inside of a generator. HYDRO 25

The challenge: modernization and increased output Gentle hydropower: Oymapinar pumped Another project completed successfully was the In Europe, as well as in North and Cen- storage power station, general overhaul of Rouna 2 cavern power station tral America, there is a large number of Turkey. in Papua New Guinea. Refurbishing was intended existing hydropower stations that have also to prolong the useful life of the plant by an- been in operation for well over 20 years. other 20 to 30 years. The output of the machines As a result, efficiency and availability of was increased by approximately 30%. these installations are significantly below the levels that are possible today. Many The hydropower stations in the Dolna Arda cas- of these installations also have potential cade are being modernized for the national Bul- output that is not utilized and can only garian energy company NEK. In March 2009, be tapped by means of the calculation machine No. 5 of the Studen Kladenets station and manufacturing processes available was successfully handed over. A vertical Francis today. As a result, customers demand an turbine with an output of 20 MW was added. increase in output of 20% and more in their modernization projects. The project to extend the output of the Hinter- muhr power station, operated by the Austrian util- ity company Salzburg AG, to more than 100 MW The solution was successfully completed. The hydropower from ANDRITZ HYDRO station, built underground in the Hohe Tauern In 2006, the Mexican utility company National Park, is now the largest operated by CFE awarded the business area a con- Salzburg AG. tract to modernize four Francis turbines at the Infernillo power station, the third Eighty pumps were successfully started up for largest hydropower station in Mexico. a paper mill in Hungary and around 160 pumps In this modernization project, the goal for a paper mill in the UK – mainly stock pumps was a 25% increase in output. The per- in both cases. formance tests following installation in February 2009 demonstrated that the During the reporting period, more than 80 turbo increase in output is well beyond this generators with an overall capacity of more than figure and also that the efficiency was 10,000 MVA were supplied to customers all over improved. Confirmed by these excellent the world by the manufacturing locations for turbo results, ANDRITZ HYDRO received sev- generators in Austria and India. eral follow-up orders for modernization and rehabilitation. 26

Europe and North America ANDRITZ HYDRO will supply cooling water MAJOR ANDRITZ HYDRO received an order to equip the pumps for a power station in the Netherlands. ORDERS Ashta hydropower station in Albania from En- The six pumps, made of stainless steel, will trans- ergji Ashta Shpk, an affiliate of Austria’s largest port sea water. electricity company, Verbund. Both stages of the power station were fitted with 45 steel modules, As part of two large projects for the pulp and each with one turbine generator unit based on paper industry in Germany and Russia, the busi- ANDRITZ HYDRO’s Hydromatrix® technology. ness area will supply standard centrifugal pumps. The plant has a total output of over 50 MW. The scope of supply covers 268 process pumps, five fan pumps, and two medium-consistency Electricidade de Portugal (EDP) placed an order pumps. with the ANDRITZ HYDRO/ENSULMECI con- sortium for supply and installation of the entire South America electromechanical equipment for two pumped The business area received a contract from storage plants as part of the Baixo Sabor power Energia Sustentável do Brasil (ENERSUS) for the station project, Portugal. Model tests are being supply, installation, supervision, and commis- conducted in the ANDRITZ HYDRO research and sioning of the equipment for the Jirau hydropower development laboratories in order to optimize the station, Brazil. ANDRITZ HYDRO Brasil will sup- hydraulics of the two plants. ply eight bulb turbines (the most powerful in the world, each with an output of 76.55 MW), genera- Energie Steiermark AG, Austria contracted tors, and voltage regulators. ANDRITZ HYDRO to supply, erect, and commis- sion four bulb turbines, each with a runner di- Astaldi, Italy, has commissioned the business ameter of 3,600 mm, including speed governors, area to supply the complete electromechani- generators, and exciter systems for the Gössen- cal equipment for the Chacayes hydropower dorf and Kalsdorf hydropower stations in Austria. station, Chile, including two Francis turbines with an output of 55 MW each, two generators, The SaskPower utility company, Canada, en- the switchgear, and the complete plant auto- trusted ANDRITZ with the rehabilitation work on mation. the E.B. Campbell hydropower station. This order includes the supply of advanced Francis turbine The consortium formed by ANDRITZ HYDRO runners and general overhaul of the turbines and Brasil, ANDRITZ HYDRO Inepar, and IESA Proje- generators for two existing machine sets. tos received a contract from the utility company Furnas Centrais Elétricas, Brazil to supply and install the electromechanical equipment for the Batalha hydropower station. The scope of supply Detailed view of a Francis comprises two Kaplan turbines (each with an out- turbine: this type of turbine put of 26.87 MW), generators, speed governors, is the most frequently used digital exciter equipment, hydromechanical and in hydropower stations. electromechanical equipment, cranes, erection work, and commissioning. The Batalha hydro- power station will supply electricity to a popula- tion of over 130,000, thus helping to cover the growing electricity demand in Brazil.

ANDRITZ HYDRO received a contract from EDELCA, Venezuela to supply, install, and com- mission the complete excitation equipment for the Guri II hydropower station. This follow-up or- der to the five 770 MW Francis turbines for Guri II already being manufactured is the largest single order for excitation equipment in the history of ANDRITZ HYDRO. HYDRO 27

Vertical line shaft pumps made of stainless duplex steel for a power station in Belgium. These cooling water pumps will transport sea water.

ANDRITZ HYDRO Inepar received two major or- Asia ders from Brazil: one contract was awarded by ANDRITZ HYDRO received an order from SN Construtora Triunfo S/A for supply of the hydrau- Aboitiz Power Magat Inc. for refurbishment of lic equipment for Salto and Salto do Rio Verdinho the entire Ambuklao power station, Philippines. power stations, while the second came from the Copel and Eletrosul consortium, two of the most From Himachal Pradesh Power Corporation Ltd. important national energy companies in Brazil, (HPPCL), the business area received a contract and related to the supply of the electromechani- to upgrade the Sawra Kuddu hydropower station, cal equipment for Maua power station. India. The scope of supply comprises design, 28

supply, erection, and start-up of three turbine sign engineering, installation, and commission- generator sets, each with an output of 37 KW, ing of two Pelton turbines each with an output including transformers, switchgear, and electrical of 62.2 MW, two spherical valves, as well as the powerhouse equipment. This contract confirms hydromechanical equipment for the dam, sedi- the business area’s excellent position in the rap- mentation basin, and power house. Hydropower idly growing hydropower market in India, where exports are one of the main sources of income for ANDRITZ HYDRO has been active for more than the Kingdom of Bhutan. 100 years and has equipped more than 150 pow- er stations with a total output of approximately For a water supply project in China, a major or- 11,000 MW. der was booked for the supply of twelve double- suction split case pumps. The business area received an order as part of a consortium to supply equipment for the Dagach- The business area received a planning and engi- hu hydropower station, Bhutan from Dagachhu neering order for four large pumping stations for Hydro Power Corporation Limited (DHPC). The agricultural irrigation in India during the reporting ANDRITZ HYDRO scope of supply includes de- period.

Further major orders at a glance

Country Customer Scope of supply/Project description Austria Verbund Austrian General overhaul of machine 3 Hydro Power at the Hieflau plant Brazil DM Construtora Supply of two 70 MW Francis turbines for the de Obras Ltda. São Francisco hydropower station Finland Savon Voima Refurbishment of the Kaplan turbines at Karjalankoski hydropower station Germany EnBW Axial bevel gear bulb (2 MW) for the Karlsruhe plant Germany RWE Turbine maintenance and repairs at Waldeck II hydropower station India Meghalaya State Two 20 MW Francis turbines for the Electricity Board Umtru plant Kazakhstan Confidential Supply including three Pelton runners for the Moinak hydropower station, ranking among the largest Pelton runners ever produced Mexico Power Machines Mexico Francis turbine (2 MW) for the La Yesca de Mexico S.A. de C.V. hydropower station Norway SKS Produksjon AS Turbine upgrade in the Sjonsta plant Panama Hidraulica Pedregalito Small hydropower plant, Pedregalito (Cobra) power station Peru Electroandes Follow-up order for supply of an additional Pelton runner in MicroGussTM technology for Yaupi hydropower station Peru EGASE Two orders for design, supply, installation, and start-up of Francis runners for the Charcani III and Charcani IV hydropower stations Sweden Vattenfall AB Modernization of a Kaplan turbine at Lasele Vattenkraft hydropower station Switzerland AG Kraftwerk Refurbishing of four Francis turbines for the Wägital Rempen power station Switzerland Mattmark AG Refurbishing of two Francis turbines at the Zermeiggern plant Turkey Limak Energy Supply of the complete electromechanical equipment for the Alkumru hydropower station Turkey Girisim Elektrik Supply of two Pelton Vertical 5 Jets (10 MW each) for Bilav hydropower station Turkey Akkanat Holding Supply of two Pelton Vertical 6 Jets (15 MW each) for Gunder hydropower station Vietnam Traxom Hydropower JSC Small hydropower plant, Traxom power station HYDRO 29

The challenge: lifetime extension Simulation of a Francis turbine for turbines in the (photo above) and a Pelton Himalayan region turbine (photo below): The objective of this research and Due to the large delivery heads and development work is to improve the extremely high content of highly the smooth running properties abrasive quartz sand, the turbine of turbine runners, both at low material in the hydropower stations partial load and at overload. located at the foot of the Himalayas is subject to extreme abrasive wear. Many conventionally manufactured runners suffer such extreme wear damage after only one monsoon sea- son that they have to be renewed. The challenge for ANDRITZ HYDRO: substantial extension of lifetime for components suffering extreme wear.

A major focus of the business area’s research and The solution development in 2009 was the optimization of hy- RESEARCH & from ANDRITZ HYDRO draulic and electrical equipment for the worldwide DEVELOPMENT Following intensive research work highest performing bulb turbines and generators and development of a new coating running in large hydropower stations. technology to minimize sand abra- sion, the business area was able to In addition, the business area is active in improv- test this success in practice: The ing the smooth running properties of turbine run- Francis runner coated by ANDRITZ ners, both at low partial load and at overload. Due HYDRO and newly developed using to the know-how on the simulation of dynamic the latest CFD methods in Naptha processes and practical experience with numer- Jhakri hydropower station, India, is in ous maximum-capacity generators, substantial excellent condition after a monsoon progress was made that was also put to the test season during which thousands of successfully in practice. tons of highly abrasive quartz sand passed through the turbine. Thus, In the large pumps sector, activities focused on the lifetime can be doubled at the project-related, further hydraulic development of very least. In the wake of this success existing runners and distributors. This resulted and numerous project enquiries, the in significant improvements in efficiency and business area has installed a robot- cavitation behavior. A new generation of process controlled coating plant at its Farida- pumps was developed in standard centrifugal bad factory in India. pumps and the medium-consistency pumps were optimized successfully. Statement of the management 2009 posed many challenges, for our customers and for ourselves. Neverthe- less, the measures implemented and the intact long-term growth drivers of the pulp and paper markets give us every reason to look towards the future with confidence. The biggest challenge to our business area in 2009 was adapting to the changed general environment in which our customers are operating. We reacted by implementing restructuring and capac- ity adjustment measures very quickly – before the end of 2008. And we are optimistic that we will emerge from this crisis stron- ger than before. After all, we have continued to invest in research and development in spite of the difficult environment – in biomass boiler technology, for example, which pulp mills can use to pro- duce green electricity, or in technologies for second-generation bioethanol plants using cellulosic raw materials. It is our firm conviction that the investment potential of the pulp and paper industry in the long run is very high. The shift of pulp production capacities from the northern to the southern hemi- sphere and the investments made in environmental technologies that contribute towards climate protection and enhanced efficien- cy in customers’ plants are the principal driving forces.

Managers of the PULP & PAPER business area (left to right): Karl Hornhofer Capital Systems Humbert Köfler Service & Units

32 PULP & PAPER 33

Performance ANDRITZ PULP & PAPER is a leading global sup- plier of turnkey systems and services for the pro- duction of all types of pulp, paper, tissue paper, board, fiber-board (MDF), nonwovens, as well as of biomass boilers and gasifiers for energy pro- duction.

The technologies available are employed for the processing of logs and annual fibers, the produc- tion of chemical and mechanical pulps as well as recycled paper fibers, recovery and reuse of chemicals, generation of energy from biomass, preparation of paper machine furnish from vir- gin or recycled fibers, production of paper, tis- sue paper and board, calendering and coating of paper, and the handling of reject materials and sludges.

Services include complete mill maintenance, equipment upgrades and rebuilds, engineered wear products, and spare parts. 34

The market for pulp production plants and sys- per ton in mid-2009, but rose again substan- MARKET tems showed a varied development during the tially towards the end of 2009 to approximately DEVELOPMENT reporting period. As a result of the global finan- 800 USD. This price rise was driven largely by the cial and economic crisis, project activity for both strong demand from Asia (particularly from China) modernizations and greenfield projects was very and by restocking in Europe and North America low during the first half of 2009. The main reasons in the wake of the low inventory levels reached for this were low pulp demand and the lack of in mid-2009. financing opportunities for projects. The situation stabilized from the third quarter of 2009 on, par- The price for hardwood pulp (birch and eucalyp- ticularly in Asia and South America, where indi- tus) developed similarly to the NBSK price. From vidual project decisions were made. a level of around 590 USD in January 2009, the price for hardwood pulp dropped to approximately This environment was also reflected in the de- 500 USD in mid-2009, but rose again to around velopment of the pulp price. Starting at a level of 700 USD by the end of 2009. Due to solid demand around 650 USD per ton at the beginning of Janu- from China, market pulp producers, particularly ary 2009, the price for NBSK (Northern Bleached in South America, were able to achieve price in- Softwood Kraft) pulp dropped to below 600 USD creases towards the end of the reporting period.

The world’s largest LC Refiner was successfully commissioned in the Braviken pulp mill, Swe- den. This refiner significantly reduces energy consumption. 35

In 2009, ANDRITZ Control and monitoring successfully commis- systems for Hebei Yongxin sioned its first large Paper’s packaging paper packaging paper line machine. for Hebei Yongxin Paper, China.

ANDRITZ PULP & PAPER started up its first large A new evaporation plant and a recovery boiler packing paper line – from the stock preparation upgrade have been started up for Södra Cell, IMPORTANT plant to the paper machine to the winder, includ- Värö, Sweden. EVENTS ing all automation systems – for Hebei Yongxin Paper Co. Ltd., China in 2009. In Brazil, the highest capacity single chipping line in the world was started up for Veracel Celulose Fibria’s Horizonte pulp mill in Três Lagoas, Brazil, S.A. which showcases the world’s largest single fiber- line, started up very successfully. The business The complete pulp drying system and a new area provided the fiberline, pulp drying/baling plant, LimeKiln™ were started up for Celulose Beira and white liquor plant (see report on page 10). Industrial (Celbi) S.A. of Portugal. This is the first EPC delivery of this kind in Europe. The first ANDRITZ biomass boiler, a new recovery boiler, a major upgrade to the evaporation plant, The first two AWP wash presses, a new design and the rebuild of a drying plant have been started washing system from ANDRITZ PULP & PAPER, up at ENCE’s Navia mill, Spain. started up successfully – the first for Stora Enso’s Skutskär mill and the second for Södra Cell’s Värö Portucel (Empresa Produtora de Pasta e Papel, mill, both in Sweden. S.A.) started up two biomass power boilers at the Setúbal and Cacia pulp mills in Portugal. Several pressurized refining systems and com- plete fiber preparation plants for MDF produc- Visy Pulp and Paper’s Tumut mill in Australia start- tion were started up during the year: seven in ed up after ANDRITZ upgraded equipment in the China, one in Nigeria, and two in Brazil. The plant fiberline and evaporation plant, and delivered a delivered to Duratex S.A., Brazil, is the world’s new recovery boiler, white liquor plant, 540 t/d largest single-stage pressurized refining system OCC processing line, and approach flow system. for MDF. 36

Asia A mechanical pulping system (RT-RTS™ TMP IMPORTANT Zhanjiang Chenming Pulp & Paper Co., Ltd., Chi- technology) has been ordered by Fujian Nanping ORDERS na – an affiliate of Shandong Chenming Paper Paper Co., Ltd., China. The new plant will pro- – selected ANDRITZ PULP & PAPER to supply duce up to 500 t/d of newsprint, culture paper, the complete process technologies for a new mill and lightweight grades. to produce bleached kraft pulp from hardwood (capacity: 700,000 t/a), as well as the complete Eight pressurized refining systems for MDF were stock preparation and approach flow system for ordered during the year, including three to be sup- a fine paper machine at this mill. To Shouguang plied to the Guodong Group, China. The Luyuan Meilun Paper Co., Ltd., a company of the Chen- Group ordered the sixth ANDRITZ system, the ming Group, the business area will deliver a 5.6 m Yingang and the Yongan Group each ordered wide PrimeLine tissue machine, stock prepara- their third ANDRITZ system. These orders bring tion and approach flow systems, and automation. the total to 100 refining systems for MDF sold by ANDRITZ to customers in China. A new 500 t/d OCC processing line and a new 100 t/d DIP line, including a paper machine ap- North and South America proach system, have been ordered by Taiyuan CMPC, Chile ordered a new High Energy Recov- Qixing Weiye Paper Taiyuan City, China. ery Boiler (HERB) and an evaporation plant on EPC basis, including automation, for their Laja Zhejiang JingXing of Pinhu, China ordered a new mill. 250 t/d recycled fiber processing line using mixed office waste. The delivery will include fiber pro- Georgia Biomass LLC, USA, a subsidiary of cessing, stock approach, thickening, and refining Europe’s leading electricity and gas company equipment. RWE, ordered a woodyard system for a pelleting plant with an annual production capacity of ap- proximately 750,000 t. This order also features the complete pelleting plant delivered by the FEED & BIOFUEL business area.

Packaging Corporation of America ordered a new High Energy Recovery Boiler (HERB), including chloride and potassium removal system, for their Valdosta mill, USA. The business area will also provide a new economizer for a recovery boiler at the company’s Counce mill in the US.

Europe Fortum Termest, Estonia awarded the business area with the supply of a newly designed feeding system and ash-handling for an ANDRITZ bio- mass boiler, ordered in 2008.

Mondi Steti a.s., Czech Republic ordered a new debarking drum to replace an existing unit.

VPK Packaging Group Oudegem Papier N. V., Belgium ordered modernization and rebuilding of a paper machine with the first triple press Prime- Press Trix.

Successfully commissioned: the sheet drying plant for Celbi, Portugal – the first EPC delivery of this kind in Europe. PULP & PAPER 37

Pulp producers are becoming Further major orders at a glance electricity suppliers: The first Country Customer Scope of supply/Project description biomass boiler and a new Austria UPM-Kymmene Mechanical pulping system (RT-RTS™ TMP recovery boiler supplied by Austria GmbH technology) with a capacity of 420 t/d ANDRITZ were commissioned Canada Domtar Recovery boiler upgrade successfully at Navia pulp Chile Arauco Debarking drum shell replacement mill, Spain. China Zhumadianshi Baiyun Paper Supply of a 450 t/d stock preparation system China MCC Meili Paper Industry Oxygen delignification and Co. Ltd. bleaching equipment China Changle Xinmai Paper Paper machine approach system; equipment for Industry Co. Ltd. processing industrial grades and deinking pulp China Shandong Huatai Paper Stock preparation and paper machine Group Co., Ltd. approach system Finland Stora Enso PrimePress X press Finland Metsä Botnia DD washer upgrade Indonesia Pelita Cengkaeng 1,150 t/d OCC line with fractionation Japan National Printing Bureau Refiner system and stock feeding system Malaysia Muda Paper Mill Sdn. Bhd. Stock preparation line for industrial grades Norway Norske Skogindustrier TMP heat recovery system Portugal Celbi Debarking drum shell replacement Russia JTI Yelets Rebuild of machine press section Slovenia Vipap Videm Krsko DIP line upgrade South Africa Mondi Ltd. Foul condensate stripping system Sweden Södra Cell Mönsterås Heat recovery system rebuild 38

A major focus of the PULP & PAPER business ar- fully put into operation several HERB, thus prov- RESEARCH & ea’s research and development activities in 2009 ing the success of this outstanding technology. DEVELOPMENT was on supporting customers to achieve sustain- able production with higher capacities as well as The business area’s R&D activities also continued higher energy-efficiency. The business area is to focus on new products for biomass handling also developing new technologies to generate and biomass power generation, especially on green energy and for the production of biofuels combustion and emission behaviors of different which will further reduce/minimize greenhouse biomass feedstocks. gas emissions. Waste-To-Power systems (WTP) is a newly cre- The enhancement of low-effluent and chemical ated unit within ANDRITZ PULP & PAPER to recovery systems to lower environmental impact develop technologies to produce energy out of continued. Technology development in evapora- paper mill residuals (mainly sludge and rejects tion focused on producing highly efficient, efflu- from wastepaper recycling processes). The main ent minimizing evaporation systems. White liquor benefits of WTP are derived from reduced volume plant development is further reducing gaseous of waste going to landfills and an increase in the emissions and cleaning solid wastes to reduce amount of energy generated by the mill. their pollutant portion. The business area is also developing technolo- R&D activities in the area of fiberlines continued to gies for bioethanol production from non-food concentrate on lowering the investment cost per based raw materials such as wood and agricul- ton of pulp produced as well as further increasing tural waste. The first two commercial pilot plants the capacities to more than 5,000 t/d. using ANDRITZ technology started up this year.

Electricity generation in pulp mills has become a Development of pressurized oxygen-blown gasifi- very important issue for the entire pulping indus- ers, which are applicable for liquid biofuel produc- try due to the rising energy costs. With ANDRITZ tion, continued. The business area successfully High Energy Recovery Boilers (HERB), pulp mills completed a comprehensive pilot plant testing can maximize electricity generation from black program in cooperation with a major customer. liquor. Research and development focused mainly A gasification process for biodiesel production is on the further enhancement of electricity output. currently under development and the site selection Over the last few years, ANDRITZ has success- process of the first production plant ongoing. PULP & PAPER 39

The challenge in MDF production Reduction of energy consumption, improvement of fiber quality, and ca- pacity increase in the refining process.

ANDRITZ’s solution The MDF SpiralTM technology (photo: refiner plate segments), which can be installed in new pressure refiners and retrofitted to existing MDF refiners, increases capacity, reduces energy consumption up to 20%, and improves fiber geometry and distribution.

New ANDRITZ technologies enable pulp and paper manufacurers to produce green energy from biomass that can not be used in the production process (e.g. bark or branches) or that occurs as a waste pro- duct from the production process. Photo: part of the recovery boiler at the ENCE pulp mill, Spain. Statement of the management In spite of the difficult environment, we succeeded in securing some very important orders in 2009 and have been able to stand our ground well, with solid business results. The steel industry faced a distinct drop in demand and prices in 2009. This led to a significant decrease in investment activity by international steel producers. Nevertheless, our business area continued to develop solidly and was able to book some major orders. This shows that the products and processes we offer reflect the latest state-of-the-art technology and perfectly match the needs of our customers. We are optimistic that the continuously rising demand for steel and stainless steel worldwide, particularly in the emerging coun- tries, will continue to be one of the main growth drivers in our market after the current difficult phase. Similarly, the constantly increasing quality demand of the end-user industries will require our customers to invest in modernization projects.

Manager of the METALS business area: Heinz Hödl

42 metals 43

Experience ANDRITZ METALS is one of the leading global suppliers of complete lines for the production and further processing of cold-rolled carbon steel, stainless steel, and non-ferrous metal strip. These lines consist of equipment for cold rolling, heat treatment, surface finishing, strip coating and finishing, punching and deep drawing, and for pickling acid regeneration. The business area also supplies turnkey industrial furnace systems for thermal processes, such as heat treatment of slabs and forged pieces, as well as refining furnaces for the copper industry. 44 Two stainless steel strip processing lines were handed over successfully to the largest Indian stainless steel producer, JSL Limited, in 2009. Photo: pickling line at the Hisar plant.

The market for plants and equipment for the Towards the end of the reporting period, however, MARKET production of stainless steel, carbon steel, and first signs of project activity stabilizing became DEVELOPMENT non-ferrous metal strip developed very weakly in evident. The increased demand from end-user in- 2009. The decline in demand for steel products dustries (particularly automobile and household as a consequence of the global financial and eco- appliances industries) as a result of re-stocking nomic crisis made substantial production cuts of inventories, as well as government-backed and capacity shutdowns necessary in the steel investments in infrastructure, led to increasing industry. According to the World Steel Associa- capacity utilization at most steel and stainless tion, global production of crude steel dropped steel manufacturers (particularly in China) and to by approximately 8% in 2009 compared to the a slight rise in steel prices. previous year.

ANDRITZ METALS successfully concluded a Steel, China. The WAPUR (Waste Acid Purifica- MAJOR number of contracts during the reporting period. tion) plant preceding the regeneration stage guar- EVENTS For example, two stainless steel strip processing antees the highest oxide quality. lines were handed over to India’s largest stainless steel producer, JSL Limited. This contract includ- The largest eccentric press ever built by ANDRITZ ed construction of a new METALS, with a pressing force of 26,000 kN, was The challenge: annealing, pickling and successfully supplied to Gutbrod, an affiliate of railway wheels rolling mill line for cold- voestalpine in Germany. Another newly devel- The Russian ironworks combine Nizhniy rolled strip with an annual oped eccentric press (pressing force 10,000 kN) Tagil Iron & Steel Works (NTMK) com- capacity of approximately was handed over to Tower Automotiv, Poland. missioned ANDRITZ METALS to build 250,000 t and modern- a heat treatment plant for the produc- ization of an existing an- Breitenfeld Edelstahl AG, Austria started produc- tion of rolled railway wheels. The special nealing and pickling line in tion at its extended steel works with three addi- challenge here is to supply a techno- the Hisar plant. tional car bottom annealing furnaces supplied by logically superior heat treatment sys- the business area. Also, the expansion of the heat tem for hardening and tempering rail- To ThyssenKrupp in Kre- treatment capacity at Metal Ravne D.O.O., Slo- way wheels with high running surface feld, the first Pyromars venia, was successfully concluded. And Cogne hardness – all within an extremely short plant in Germany was Acciai Speciali Spa, Italy, ordered another furnace project term. successfully handed plant after the supply of a car bottom forging fur- over. This mixed acid nace to the same customer. regeneration plant is the The solution most modern of its kind from ANDRITZ METALS worldwide and makes a substantial contribution The project term from signing the con- towards protecting the tract to production hand-over was only environment with its re- one year, thus exactly meeting the ex- duced effluent and fresh tremely tight schedule. In 2009, the acid quantities. plant was handed over successfully to the customer after all requirements An acid regeneration were met, and some even surpassed: plant (capacity 3,600 l/h) higher production performance and was successfully hand- wheel quality, as well as increased plant ed over to Zong Cheng availability, combined with reduced en- ergy consumption. On the basis of this Car bottom annealing furnaces are used for performance, the customer awarded heat treatment in forging mills, foundries, heat ANDRITZ METALS the contract for the treatment-only plants in the steel industry, as second expansion stage of the plant, well as in the non-ferrous metal industry. which is to be completed in the sum- mer of 2010. metals 45

Asia A regeneration plant for hydrochloric acid, includ- Bahru Stainless SHN BHD in Malaysia (a joint ing a waste pickle cleaning plant and three pre- IMPORTANT venture between Acerinox S.A., Spain, and Nis- sedimentation plants, will be supplied to Hebei ORDERS shin Steel, Japan) awarded the business area the Shougang Qian’an Steel Co., China. contract to supply a continuous annealing and pickling line for hot-rolled and cold-rolled stain- Benxi Iron & Steel Co., Ltd., China, commis- less steel strip (annual capacity approximately sioned the business area to install an electrolytic 540,000 t) and a skin-pass mill, three-roll grinding galvanizing plant for steel strip (annual capacity machines, and a mixed acid regeneration sys- 309,000 t). This plant is based on the Gravitel tem. This is the second large order that ANDRITZ technology developed by ANDRITZ and used METALS has received from the Acerinox Group in worldwide in the production of electrolytically the past three years. galvanized steel strip of highest quality for the automobile and household appliances industries. Baoji Titanium Industry Co. Ltd., the largest tita- nium producer in China, commissioned the busi- For Tongling Nonferrous Metals Group Co. Ltd., ness area to supply a continuous pickling line for China, the business area will install a 20-high mill hot-rolled and cold-rolled titanium strip for the au- stand to produce strip material for the electronics tomobile and aircraft industries (annual capacity industry (annual capacity 40,000 t). The scope of approximately 20,000 t), and a 20-high rolling mill supply includes the electrical equipment, techno- for processing titanium and stainless steel strip. logical control system, and a roll grinding machine.

Taiyuan Iron and Steel (Group) Co., Ltd., the larg- North and South America est stainless steel producer in China, ordered two Unigal, Brazil, a joint venture by Usiminas and 20-high rolling mills for its plant in Taiyuan. Both Nippon Steel, ordered a recoiling and inspection mills are specially designed for rolling precision line for hot-dip galvanized steel strip for the au- stainless steel strip and have an annual capacity tomobile industry, to be delivered to its Ipatinga of 22,000 t. plant (annual capacity 240,000 t).

The business area received an order from Europe Baoshan Iron & Steel (Baosteel), China, for re- For Acciaieria Arvedi, Italy, ANDRITZ METALS will construction of the existing cut-to-length line for install a regeneration plant for hydrochloric acid thick strip, including the complete electronic drive based on fluidized bed technology. The products and control system. of this plant – regenerated hydrochloric acid and iron oxide pellets – are reused in the steel produc- tion process. 46

The challenge: The solution maximize local supply from ANDRITZ In addition to supplying a state-of-the-art con- Thanks to its strong pres- tinuous pickling line with acid regeneration for ence in the Brazilian mar- hot-rolled carbon steel (see graphics below) ket, ANDRITZ was able to with a capacity of 1.7 million t/a at the Cubatão access time-tested and works that minimizes consumption, the Usinas long-standing suppliers Siderurgicas de Minas Gerais SA (Usiminas) quickly. All major supplies steel group of Brazil presented the business and services of these sup- area with a special challenge in this large order: pliers are handled by the In view of the import duties and the request for Brazilian affiliate ANDRITZ local after-sales service, the scope of local sup- Brasil Ltda., headquar- ply had to be as large as possible. tered in Curitiba.

Further major orders at a glance

Country Customer Scope of supply/Project description Austria Böhler-Uddeholm Supply of two roll Precision Strip grinding machines China Baoshan Iron & Steel Follow-up order to the supply of a neolyte pickling (Baosteel) section for the Baosteel works Shanghai No. 1 Germany Dirostahl Rotary table furnace for heating steel ingots Italy Fomas S.p.A. Two chamber furnaces Korea Posco Roll grinding machine Pakistan International Industries Ltd. Regeneration plant for hydrochloric acid metals 47

Research and development of the METALS busi- In addition, the process for regeneration of used ness area concentrated on improvement and mixed acid from stainless steel pickles was opti- RESEARCH & further development of products. A new roller mized. The target is a totally effluent-free pickling DEVELOPMENT seal was developed, e.g., for the stainless steel system and regeneration process by using an annealing furnace sector. This allows a very eco- evaporator for the rinsing water. In the batch-type nomical process management, particularly with furnaces with circulating heating system, the flow the increasing demand nowadays for longer pattern was improved so that the material being length furnaces. treated is heated through very evenly.

Challenge ANDRITZ’s in car manufacturing solution In car manufacturing, an ever in- As from February 2010, scrap from the creasing volume of galvanized sheet production facilities of a large German car metal is being used in order to im- manufacturer will be dezinctified in a pilot prove corrosion protection. Large plant developed by the business area. In quantities of new galvanized scrap this process, the scrap comes into contact are produced in the manufacturing with a liquid from zinc production. The zinc process. Although this scrap is high- content in the liquid thus increases, and grade material, the zinc coating on the enriched liquid is eventually delivered the surface means that it can only back to the zinc manufacturer. After clean- be further processed at the expense ing and drying, the dezinctified scrap can of the quality, thus resulting in mark- be used for more sophisticated applica- downs in price. tions, for example in the foundry industry. Statement of the management We are well-positioned for the future. The financial and economic crisis has also impacted the markets of our business area. In particular, a decline was noted in industrial and municipal process applications; how- ever, the impact of this decline was offset by solid develop- ments in sludge drying and dewatering, as well as biomass drying plants. All in all, we succeeded in holding our ground well in spite of the difficult overall economic environment. Research and development will continue to be a focus of our business area in the future. With new technologies and products, we will continue to be successful in the market for environment and process technology, which will see substan- tial growth in the long-term. Increasing environmental protec- tion measures and continuously rising environmental regula- tions give us reason to expect substantial growth potential.

Managers of the ENVIRONMENT & PROCESS business area (left to right): Werner Hölblinger Thermal Processes Ludger Konkol Separation Technologies Environment & Process 50 environment & process 51

Passion ANDRITZ ENVIRONMENT & PROCESS is one of the leading global suppliers of plants, equip- ment, and services for mechanical and thermal solid/liquid separation of municipal and industrial sludges and suspensions (coal, ore and mineral processing, chemical, petrochemical, and food industries).

The business area’s field of activity covers design and manufacture of key components (centrifug- es, filter presses, rotating filters, and plants for dewatering, drying, and sludge incineration), as well as erection and start-up of turnkey plants, including automation, safety engineering, and services. 52

Project activity for municipal sludge dewatering sions being postponed or put on hold. Towards MARKET plants for sewage and drinking water remained the end of the reporting period, however, invest- DEVELOPMENT at a moderate level worldwide in 2009, with sat- ment activity for municipal sludge drying plants isfactory demand in China only. rose in North America, China, and Korea due to economic stimulus programs launched by the Also in the industrial process applications sec- governments of these countries. The demand tor – particularly in the petrochemical industry, for drying plants for industrial products, however, as well as in the minerals and mining industries – remained at a moderate level. investment activity was low, with the exception of China, Russia, and Canada. Project activity for biomass (sawdust/wood chips) drying systems continued at a stable level in Development of the market for sludge drying Western Europe and Scandinavia. plants was subdued, with many investment deci-

ANDRITZ ENVIRONMENT & PROCESS further MAJOR extended its service network by opening a new EVENTS centrifuge repair shop in Whitbank, South Africa.

The customer satisfaction report by ‘China Water Web’ – covering 100 water and wastewater treat- ment plants – has ranked ANDRITZ the number one for sludge dewatering equipment in five out of seven categories. This confirms the business area’s leading position in this market.

The challenge: local manufacture The economic stimulus package launched by the US government in view of the financial and economic crisis requires in its so-called ‘Buy American’ clause that products for municipal sludge treatment plants have to be manufac- tured in the US.

The solution from ANDRITZ ANDRITZ has been manufacturing fine screens, belt presses, and centrifuges for industrial ap- plications in the US for many years now. The manufacturing capacity was extended in good time to include municipal centrifuges and dryers, thus the ‘Buy American’ clause can be fulfilled for all products. environment & process 53

The challenge: The solution drying large quantities from ANDRITZ of sawdust for industrial The belt dryer that ANDRITZ supplied to pellet production Heggenstaller (see picture below) and High performance and unchanging qual- which went into operation successfully ity – that’s what the Heggenstaller sawmill in 2009 consists of two lines, each with in Lauterbach, Germany expects from the a belt width of eight meters and a water supplier of a new belt dryer. Heggenstaller evaporation capacity of each line of ap- has various uses for the sawdust from the proximately 11 t/h. The energy needed belt dryer, including its wood pellet produc- for drying is provided by exhaust heat tion beginning in 2010. ‘As a result of the from the customer’s own biomass pow- stringent demands, it was essential for us er plant. In addition to the high capacity, to find an established supplier with a great ANDRITZ also meets the stringent qual- deal of experience in industrial applications’, ity demands: the dried material has low reports Heggenstaller’s Managing Director, and constant residual moisture, with Gebhard Dünser. only slight fluctuations of ±0.5%. 54

Asia Europe MAJOR During the reporting period, the business area re- The business area is to supply a drum drying ORDERS ceived orders from China for the supply of several plant, including two centrifuges, for a large sew- large filter presses for drinking water treatment age treatment plant in Brighton, UK. and for a coal liquefying plant of the Shenhua Group. A major order for seven large municipal EnBW, Germany, has awarded the business area sludge centrifuges was received from the City of an order for modernization and rehabilitation of Doha, Qatar. municipal sludge drying plants.

Polymetal, one of the leading gold producers in North America Russia, ordered three large filter presses for gold ANDRITZ ENVIRONMENT & PROCESS received washing applications. This was the third order in an order from PCS Rocanville, Canada, for supply a row for the business area from this customer. of eleven centrifuges for potash.

A customer in Russia commissioned the business In the thermal drying sector, the business area area to supply a high-temperature potash dryer; will conduct modernization and rehabilitation of a sodium sulfate dryer, as well as three drying municipal sludge drying plants, including a plant plants for special synthetic will be delivered to for Ocean County Utility Authority, USA. customers in China. Synagro, USA, ordered two drum drying lines for A large number of wastewater treatment plants the new municipal sludge treatment plant in Phila- in Guangdong Province, China, will be equipped delphia. These lines will be the largest ever to be with ANDRITZ belt presses for sludge dewater- supplied by the business area. With the award ing. In total, more than 65 belt presses will be of two orders to supply belt dryers for sludge, delivered to customers in Guangdong by the end ANDRITZ ENVIRONMENT & PROCESS has suc- of 2010. cessfully entered the belt drying market in the US. environment & process 55

Further major orders at a glance

Country Customer Scope of supply/Project description Belarus Belurs Supply of two large screen bowl centrifuges for potash Brazil Abengoa Two dewatering plants for treatment of ash from the steam boiler in sugar factories Canada Suncor Four centrifuges for dewatering of tar sand residue China Chengdu Water Supply of three large filter presses for sludge dewatering China Taggart Two hyperbaric filters for fine coal dewatering China China Three centrifuges for dewatering of HDPE Petroleum (High Density Polyethylene) Egypt NCIC – El Nasr Co Supply of four membrane filter presses Mexico Pemex Two large centrifuges for the petrochemical industry Romania Constanza Delivery of the first centrifuges with patented TC drive (TC: transmission coaxial) for Romania Russia JSC Kuzbasskaya Heavy duty belt presses for coal Russia OAO Uralkali High-temperature fluidized bed dryer for 200 t/h potash Singapore De Smet Nine membrane filter presses for plants in Malaysia and China USA DE-CAL Inc. Centrifuges for sludge dewatering USA Trinity River Supply of two of the largest wastewater inlet fine screens Authority currently available on the market

The research and development activities of the The Thermal Processes division focused its re- Separation Technologies division focused on val- search and development work on biomass, con- RESEARCH & ue analysis programs for products. These can be centrating primarily on increasing the value of bio- DEVELOPMENT used either to achieve a cost reduction of around mass fuels and on the drying of biomass. Based 20% on customer projects or to enhance unit on the positive experience gained with installed performance also by around one-fifth – with no sawdust dryers, drying technology is now being increase in costs. E.g., a value analysis project re- extended to other biomass fractions, such as sulted in the development and patenting of a cylin- bark, rejects, or sludge from the pulp and paper drical-conical screen bowl centrifuge that enables industry. In addition, the through-air process used an increase in throughput of 20-30% compared to successfully in sawdust dryers and the alterna- conventional cylindrical centrifuges – with virtually tive process arrangement with circulating air will unchanged space and energy requirement. be developed further; by using circulating air and heat recovery, savings of up to 20% can be made For applications in the mining industry, quick- in the thermal energy required. opening filter presses were developed that mini- mize the opening and discharge time significantly, Development work on a biological and physical- thus increasing production capacity. chemical process for treating exhaust air in order to reduce odor and TOC (Total Organic Carbon) emissions from sludge drying plants continued Successfully commissioned: the sludge successfully. Pilot tests showed that the non- dewatering and drying plant for Anglian thermal treatment processes available commer- Water in Tilbury, England. Anglian Water cially cannot reliably guarantee the TOC content is the largest water and wastewater com- required by law in some countries. Thus, in bor- pany in England and Wales, providing water derline cases, the only alternative is to use ex- and wastewater services to more than five haust air treatment processes with thermal post- million domestic and commercial customers. combustion. Statement of the management 2009 was a difficult year for our end-user industries, which also made it a difficult year for us. As market leader, however, we expect continuing high growth potential in the medium to long term. In the past year, we faced significantly reduced project activity in feed production systems. However, the market for biomass pelleting plants was very active, especially towards the end of the year. Since the growth drivers for our business have remained intact, we expect good growth in the medium and long- term, particularly for biomass pelleting systems.

Manager of the FEED & BIOFUEL business area: Jari Ålgars

58 feed & biofuel 59

Strength ANDRITZ FEED & BIOFUEL is one of the global market leaders for supplying plants, equipment, and services for the animal feed industry (pet food industry, fish and shrimp feed industries) and for biomass pellets (wood pelleting and pelleting of agricultural and industrial by-products). 60 The business area received an order to supply a complete processing line for animal feed production from Lifland, Iceland. With this new plant, Lifland will provide approximately 60% of Iceland’s entire animal feed production.

In 2009, project activity in the animal feed sector The market for biomass/wood pelleting equip- MARKET was negatively impacted by the global economic ment showed reasonable project activity, es- DEVELOPMENT and financial crisis. Due to both low demand pecially in Northern Europe, but also in Eastern from end-consumers and lack of financing, many Europe, and North and South America. However, projects were put on hold or project decisions similar to the animal feed sector, several, in part postponed. Also in the special feed sector, proj- larger, projects were put on hold or project de- ect activity was at a very low level, especially for cisions delayed due to unchanged tight credit aquatic feed and pet food. markets.

ANDRITZ FEED & BIOFUEL successfully com- plant, the ENVIRONMENT & PROCESS business IMPORTANT missioned several plants and manufacturing area delivered a belt dryer for biomass). EVENTS lines during the reporting period. Amongst those, two large wood pelleting plants were suc- The business area started up the largest straw cessfully handed over to Stora Enso, Sweden: pelleting plant of the world (annual capacity: a 100.000 t/a pelleting section for Stora Enso’s 100,000 t/a) at Drax Energy’s power station, plant in Grums, and a complete process line for a one of UK’s largest power plants. Drax supplies wood pelleting plant with a production capacity approximately 7% of the UK households with of 160,000 t/a for its plant in Kopparfors (for this energy.

The largest pelleting plant for straw worldwide, supplied by ANDRITZ, was commissioned suc- cessfully in 2009 for Drax Energy’s power station. Drax supplies electricity to around 7% of UK’s households. feed & biofuel 61

Europe sion lines, amongst those major upgrades for a At the beginning of 2010, the business area re- large salmon feed plant in Scotland, and a pet- MAJOR ceived the order from the pulp and paper pro- food plant in Belgium. ORDERS ducer Vyborgskaja Cellulosa, Russia, to supply all process equipment for a complete wood pelleting North America plant in Vyborg. With a production capacity of The business area will supply a complete wood over 900,000 t/a, this wood pelleting plant will pelleting plant including debarking line, chip han- be the largest worldwide. The scope of supply dling system, as well as hammer and pelleting mills includes debarking lines, chip handling system, to Georgia Biomass LLC, a subsidiary of Europe’s belt dryers, as well as hammer and pelleting mills. leading electricity and gas company RWE. With This order will be booked as order intake in 2010. a production capacity of 750,000 t/a, this wood pelleting plant in Waycross, USA will be the larg- To BioWood Norway AS, Norway, ANDRITZ est in North America. ANDRITZ PULP & PAPER FEED & BIOFUEL will deliver another wood pel- will supply the plant’s woodyard. leting plant. This plant has a total annual capacity of 450,000 t wood pellets. Within the feed segment, a complete pelleting line for the production of poultry and pig feed with a For Lifland, Iceland the business area will sup- capacity of 25 t/h was secured in Mexico. ply a complete processing line for animal feed production. With this greenfield plant (capacity Asia 50,000 t/a), Lifland will cover nearly 60% of total Based on the increased presence and capacity animal feed production in Iceland. of the business area in Asia, a good number of orders for extruder and dryer lines was secured Within the special feed segments, the business from the aquatic feed and animal feed sectors in area received a number of orders for new extru- China and Southeast Asia.

The FEED & BIOFUEL business area – together Additionally, the business area implemented a with the ENVIRONMENT & PROCESS business new test line for biomass milling and pelletizing in RESEARCH & area – continued focusing its R&D activities on order to conduct research and development work DEVELOPMENT programs to increase the value of biomass fuels. in the area of solid biofuel/renewable energy gen- eration. The line will also be used for customer- The business area developed a new series of its specific trials to optimize process characteristics conditioner, ensuring a more hygienic product and for new raw materials, as well as for operator better feed quality compared to former solutions. training purposes. The temperature controlled conditioner secures that no feed leaves the controlled thermal treat- ment before meeting the set hygienic standards. 62

Manufacturing

The ANDRITZ GROUP runs over 55 manufacturing and service sites world- wide. These facilities manufacture and assemble key components and spare/ wear parts for ANDRITZ equipment and systems. With its make-or-buy strategy, proven successfully for many years, manufacturing capacities can be adjusted quickly and flexibly to the respective workload.

Due to the financial and economic crisis, capaci- ties at some manufacturing locations were ad- justed to the difficult economic environment. In the HYDRO business area, however, manufactur- ing capacity was increased slightly – particularly in China, India, and Brazil – in view of the continu- ing favorable development of order intake.

Investments Investments at the manufacturing locations fo- cused on new manufacturing technologies, auto- mation, as well as on establishing and expanding manufacturing capacities in the emerging mar- kets in 2009.

The challenge: fluctuations in capacity utilization As a company being active in the project business, ANDRITZ has to adjust its manufacturing capacity constantly in order to deal with changes in workload at any given time.

The solution: the ABC of manufacturing ANDRITZ pursues a stringent make-or-buy strategy: depending on workload, the ratio of in-house manufac- turing to outsourced production by qualified suppliers can be adapted quickly and flexibly. For this purpose, all key components and spare parts are split into three Major developments in 2009 categories: Expansion of the ANDRITZ HYDRO manufac- Category A: turing facilities with locations in Weiz, Austria, High-quality key components and spare parts critical and Tiszakécske, Hungary. to the technology – these are always manufactured in- Capacity increase and extension of the product house, regardless of whether workload is high or low. portfolio for ANDRITZ HYDRO at the manufac- Category B: turing sites in Araraquara, Brazil, and Chengdu, Semi-critical key components and spare parts – these China. are sourced from qualified suppliers if workload is high Integration and productivity enhancement at and manufactured in-house if it is low. the new manufacturing locations in Düren, Ger- Category C: many, and Levice, Slovakia. Non-critical key components and spare parts – these Expansion of manufacturing facilities in Foshan are always sourced from qualified suppliers, regardless and Sanshui, China. of whether workload is high or low. Successful production start of a manufacturing Flexible working hour models, a high proportion of line for heat exchanger plates at the manufac- skilled temporary workers, and regular supplier checks turing location in Tiszakécske, Hungary. regarding quality and on-time delivery support this strategy. Manufacturing | Human Resources Management 63

Human Resources Management

At the end of 2009, the number of ANDRITZ GROUP employees amounted to 13,049 (-4.8% compared with December 31, 2008: 13,707 employees). In 2009, the Group was again able to fill all vacant key positions successfully. One particular focus of Human Resources (HR) Management was the devel- opment of high potentials and successor candidates for global top positions.

The main task of Human Resources Manage- ment, which is responsible for Group-wide coor- dination of human resources work, is to provide sufficient management resources for existing and new business opportunities. This includes plan- ning succession for global key positions – e.g. for managers of the business areas, divisions, and affiliates – as well as developing high potentials for future management posts.

A Group-wide standard was developed for per- formance appraisals in order to facilitate pre-se- lection of junior staff for future top management posts according to their personal performance and potential.

In addition, the development programs for man- agement resources were extended. The Group- wide management training program ‘ANDRITZ GROUP Management Challenge’, which is car- ried out together with the St. Gallen Management Center of Switzerland, was adapted especially to the needs of future managers. A new ‘Leader- ship Development’ program for successor can- didates in global key positions was implemented successfully.

Vocational training in manufacturing In the manufacturing sector, the main focus rest- ed on further qualification of shift managers and Technologically critical and high-quality key supervisors during the reporting period. Based components and spare parts are always manu- on the results of the ‘Reduction of Disturbance factured by ANDRITZ itself, regardless of workload. Variables’ improvement project, additional voca- In the manufacturing sector, HR activities focused tional training courses were held on management on further qualification of shift managers on the know-how for shift managers and on project and subject of management know-how. process management for supervisors in addition to the regular technical training courses.

Employees by region as of December 31, 2009 (as of December 31, 2008) in %

Others: 2 (1) South America: 7 (7) Asia (excl. China): 9 (7)

China: 9 (9)

North America: 10 (12)

One focus of HR Management in 2009 was the Europe: 63 (64) development of high potentials and successor Total employees: candidates for global top positions. 13,049 (13,707) 64

Automation

ANDRITZ AUTOMATION combines automation know-how with the expertise in process and mechanical design available in the ANDRITZ GROUP and is thus able to develop customer-tailored automation products that meet cus- tomers’ technological and economic requirements. Complete automation systems from one source enable short start-up times and smooth operation of ANDRITZ plants and technologies. Automation 65

Product developments In the METALS business area, automation pack- In the PULP & PAPER business area, develop- ages for rolling mills and strip processing lines ment work continued on the Advanced Process were successfully commissioned in China, Tai- Control System for optimization of thermo-me- wan, and the US. chanical pulp production. Control systems were developed successfully also in connection with In the ENVIRONMENT & PROCESS business improving operation of recovery boilers and chlo- area, dewatering and separation machines with rine dioxide plants in pulp mills. the latest control and automation technology went into operation for customers in Europe, Modular control systems for belt presses and Asia, and the US. centrifuges in order to adapt to different dewa- tering processes were the target of further devel- Control systems for biomass drying were started With almost 800 en- opment work in the ENVIRONMENT & PROCESS up at the Lauterbach plant, Germany, and at Kop- gineers, ANDRITZ business area. Control systems were developed pafors, Sweden. AUTOMATION has for belt dryers so that very narrow tolerance rang- a presence at 65 loca- es can be guaranteed for the dryness content of In order to improve overall plant operations, au- tions in 64 countries the finished products. tomation systems were started up in belt drying worldwide. plants for sludge treatment in Hereke and Anta- In the FEED & BIOFUEL business area, the lya, both in Turkey, in Agde, France, and in Heil- SCADA system (SCADA: Supervisory Control bronn, Germany. and Data Acquisition) – a modular and scalable software platform for easy adaption to customer The automation upgrade for potash production at requirements – was started up successfully. underground-mine Intrepid Potash in Carlsbad, USA, was completed successfully. Business development As part of a project for supply of a board machine Major orders and stock preparation plant to Hebei Yongxin ANDRITZ HYDRO Automation received a con- Paper Co. Ltd., China, ANDRITZ AUTOMATION tract to modernize the regulating equipment at specialists from Europe and China successfully Augst-Wyhlen and Laufenburg hydropower sta- started up process and quality control systems, tions, Germany. The scope of supply comprises as well as a paper machine monitoring system. regulating equipment for seven Francis and 23 Straflomatrix™ turbines. The entire automation system, electrical equip- ment and instrumentation for the pulp drying line Ten excitation systems will be modernized for and lime kiln supplied to Celbi, Portugal, was Edelca, Venezuela, at the Guri II hydropower delivered, installed, and started up successfully. station, one of the largest in the world (see report page 6). Automation teams from Finland and Brazil suc- cessfully completed work on the electrical equip- A process simulator and several Advanced ment and automation system for the woodyard at Process Control Systems will be supplied for Veracel pulp mill, Brazil. the fiberline and recovery sector of a pulp mill of Shandong Chenming Paperholding Ltd., China. At Fibria’s Horizonte mill in Três Lagoas, Brazil, the complete equipment supplied by ANDRITZ A dynamic simulator for transporting ore will be AUTOMATION – from transformer to automa- delivered for Codelco, Chile. tion systems for digester, fiberline, drying line, and recausticizing – went into operation. For the In the METALS sector, ANDRITZ AUTOMATION mill staff, the IDEAS training simulator was intro- received orders to supply automation systems duced successfully. Horizonte is the world’s larg- and electrical equipment for the continuous pick- est single fiberline and was supplied by ANDRITZ ling line to Usiminas, Brazil, and for the electrolytic PULP & PAPER (see report page 10). galvanizing plant and the annealing and pickling line to Benxi and ZPSS, both in China.

The motor control center – the switchgear used to control all the electric drives – in Southern Water’s drying plant for municipal sludge in Ashford, England. Southern Water supplies fresh, quality drinking water to more than one million households. 66

Locations Europe Denmark ANDRITZ S.A.S. ANDRITZ Rollteck GmbH ANDRITZ FEED & BIOFUEL A/S 65, Route de Marienthal Gottlieb-Stoll-Strasse 1 Austria Glentevej 5-7 67500 Haguenau, France 73271 Holzmaden, Germany +49 (7023) 90070 0 ANDRITZ AG 6705 Esbjerg, Denmark +33 (3) 880 611 99 Headquarters ANDRITZ Group +45 (72) 160 300 +33 (3) 880 690 90 +49 (7023) 90070 70 Stattegger Strasse 18 +45 (72) 160 301 [email protected] [email protected] 8045 Graz, Austria [email protected] +43 (316) 6902 0 ANDRITZ S.A.S. ANDRITZ Separation GmbH +43 (316) 6902 415 Finland FEED & BIOFUEL Division Dillenburger Strasse 100 [email protected] ANDRITZ Oy Site d’Activités des Grillonnières 51105 Cologne, Germany Tammasaarenkatu 1 37270 Saint Martin Le Beau, France +49 (221) 9856 107/208 +49 (221) 9856 202 ANDRITZ AG 00180 Helsinki, Finland +33 (247) 50 6364 Eibesbrunnergasse 20 +358 (0)20 450 5555 +33 (247) 50 2066 [email protected] 1120 Vienna, Austria +358 (0)20 450 5109 [email protected] +43 (1) 81195 0 [email protected] ANDRITZ Separation GmbH +43 (1) 81376 45 ANDRITZ HYDRO S.A.S. Gebrüder-Netzsch-Strasse 19 [email protected] ANDRITZ Oy 49-51 Boulevard Paul Langevin 95100 Selb, Germany Keskikankaantie 9 BP 7-38601 Fontaine Cedex, France +49 (9287) 75 700 +49 (9287) 75 704 ANDRITZ AG 15860 Hollola, Finland +33 (476) 8595 23 Lunzerstrasse 64 +358 (0)20 450 5555 +33 (476) 2616 20 [email protected] 4031 Linz, Austria +358 (0)20 450 6711 [email protected] +43 (732) 6987 76210 [email protected] Lenser Filtration GmbH +43 (732) 6987 74508 ANDRITZ Selas S.A.S. Breslauer Strasse 8 [email protected] ANDRITZ Oy 4, avenue Laurent Cely, Hall A 89250 Senden, Germany Kyminlinnantie 6 92600 Asnières-sur-Seine, France +49 (7307) 801 0 +49 (7307) 33 275 ANDRITZ HYDRO GmbH 48600 Kotka, Finland +33 (1) 4080 3400 Vienna Headquarters +358 (0)20 450 5555 +33 (1) 4080 3438 [email protected] Penzinger Strasse 76 +358 (0)20 450 5540 [email protected] 1141 Vienna, Austria [email protected] Sundwig GmbH +43 (1) 89100 0 Germany Stephanopeler Strasse 22 +43 (1) 89 46046 ANDRITZ Oy ANDRITZ FEED & BIOFUEL 58675 Hemer, Germany [email protected] Lypsyniemenkatu 5 eine Zweigniederlassung der +49 (2372) 54 0 57100 Savonlinna, Finland ANDRITZ GmbH +49 (2372) 54 200 [email protected] ANDRITZ HYDRO GmbH +358 (0)20 450 5555 Industriestrasse 15A Euro Plaza – Object D +358 (0)20 450 6220 40822 Mettmann, Germany Wienerbergstrasse 41 [email protected] +49 (2104) 9197 0 Great Britain 1120 Vienna, Austria +49 (2104) 1205 4 ANDRITZ Ltd. +43 (1) 81195 6700 ANDRITZ Oy [email protected] R&B Technology Centre +43 (1) 81195 6953 Wredenkatu 2 Speedwell Road, Parkhouse East [email protected] 78250 Varkaus, Finland ANDRITZ Fiedler GmbH Newcastle-under-Lyme +358 (0)20 450 5555 Weidener Strasse 9 Staffordshire, ST5 7RG, Great Britain +44 (1782) 5656 56 ANDRITZ HYDRO GmbH +358 (0)20 450 5974 93057 Regensburg, Germany Elingasse 3 [email protected] +49 (941) 6401 0 +44 (1782) 5661 30 8160 Weiz, Austria +49 (941) 6241 4 [email protected] +43 (3172) 606 0 ANDRITZ Oy [email protected] [email protected] +43 (3172) 606 494 Hermiankatu 8D [email protected] 33720 Tampere, Finland ANDRITZ Fliessbett Systeme GmbH ANDRITZ Ltd. +358 (0)20 450 5555 Goethestrasse 36 Thermal Processes Suite 5L, North Mill, Bridgefoot ANDRITZ HYDRO GmbH +358 (0)20 450 6500 88214 Ravensburg, Germany Lunzerstrasse 78 [email protected] +49 (751) 56058 0 Belper, DE56 1YD, Great Britain 4031 Linz, Austria +49 (751) 56058 930 +44 (1773) 599 540 +43 (70) 6986 0 ANDRITZ HYDRO Inepar Finland Oy [email protected] +44 (1773) 599 541 +43 (70) 6980 2554 P.O. Box 29, Etu-Hankkionkatu 1 [email protected] [email protected] 33701 Tampere, Finland ANDRITZ HYDRO GmbH +358 (3) 256 43111 Escher-Wyss-Strasse 25 ANDRITZ FEED & BIOFUEL Ltd. Stockholm Road Anstalt für Strömungsmaschinen +358 (3) 256 43999 88212 Ravensburg, Germany Sutton Fields Industrial Estate Gesellschaft mbH [email protected] +49 (751) 29511 0 Andritzer Reichsstrasse 68B +49 (751) 29511 999 Hull, HU7 0XL, Great Britain 8045 Graz, Austria Savonlinna Works Oy [email protected] +44 (1482) 825 119 +43 (316) 692 728 Lypsyniemenkatu 5 +44 (1482) 839 806 +43 (316) 691 575 57100 Savonlinna, Finland ANDRITZ Kaiser GmbH [email protected] [email protected] +358 (0)20 450 6000 Gewerbestrasse 30 +358 (0)20 450 6239 75015 Bretten-Gölshausen, Germany ANDRITZ HYDRO Ltd. Czech Republic [email protected] +49 (7252) 910 01 2nd Floor, Premier House Carolina Court, Lakeside ANDRITZ spol s.r.o. +49 (7252) 910 199 Na Hrázce 710 France [email protected] Doncaster, DN4 5RA, Great Britain 500 09 Hradec Králové ANDRITZ S.A.S. +44 (1302) 349 187 Czech Republic 2-4 Avenue de l’Europe, Bât. Equateur ANDRITZ Küsters GmbH +44 (1302) 349 790 +420 (602) 170 764 78140 Vélizy-Villacoublay, France Eduard-Küsters-Strasse 1 [email protected] +420 (495) 518 220 +33 (139) 2605 50 47805 Krefeld, Germany [email protected] +33 (139) 2605 60 +49 (2151) 34 0 ANDRITZ Selas UK Ltd. [email protected] +49 (2151) 34 1206 Suite 5L, Business Centre North Mill, Bridgefoot ANDRITZ HYDRO s.r.o. [email protected] [email protected] Belper, DE56 1YD, Great Britain P.O. Box 8, Ceskobrodska 108n 130 04 Praha 3, Czech Republic ANDRITZ S.A.S. ANDRITZ Kufferath GmbH +44 (1773) 829 954 +420 (284) 028 411 Allée de la Garenne, Z.I. - Le Buxerioux Lommessemstrasse 32-36 +44 (1773) 829 985 +420 (284) 824 313 36000 Châteauroux, France 52353 Düren, Germany [email protected] [email protected] +33 (254) 6133 33 +49 (2421) 801 104 +33 (254) 6133 30 +49 (2421) 801 33104 Hungary ANDRITZ HYDRO s.r.o. [email protected] [email protected] ANDRITZ Kft. Panska 161/26 [email protected] Dózsa telep 69. 370 01 Ceske Budejovice ANDRITZ Maerz GmbH 6060 Tiszakécske, Hungary Czech Republic ANDRITZ S.A.S. Corneliusstrasse 36 +36 (76) 542 128 40215 Düsseldorf, Germany +36 (76) 542 199 +420 (387) 201 657 Pulp & Paper Service Division +49 (211) 38425 0 [email protected] [email protected] 30, rue Henri Martin 86100 Châtellerault, France +49 (211) 38425 20 +33 (549) 93 9381 [email protected] +33 (549) 93 9380 [email protected] Locations 67

Italy Slovakia ANDRITZ Lynson AB ANDRITZ Brasil Ltda. ANDRITZ HYDRO s.r.l. ANDRITZ FEED & BIOFUEL s.r.o. Tellusvägen 33-35 Rua Tabapuã, 627 - Conj. 92, Itaim Bibi Unipersonale Chemlonská 1 186 25 Vallentuna, Sweden 04533-012 São Paulo, SP, Brazil Via Daniele Manin 16/18 066 01 Humenné, Slovakia +46 (8) 514 510 00 +55 (11) 2168 0100 36015 Schio (Vicenza), Italy +421 (57) 771 2701 +46 (8) 514 510 49 +55 (11) 2168 0110 +39 (0445) 678 211 +421 (57) 448 6188 [email protected] [email protected] +39 (0445) 678 218 [email protected] [email protected] ANDRITZ Waplans AB ANDRITZ Brasil Ltda. ANDRITZ Jochman s.r.o. P.O. Box 1, Vaplandsväg 29 Av. Iriri, s/n, Valparaíso The Netherlands Radlinského 19 830 44 Nälden, Sweden 29165-800 Serra, ES, Brazil ANDRITZ B.V. 052 01 Spišská Nová Ves, Slovakia +46 (640) 177 00 +55 (27) 2104 7650 Nijverheidsweg 3C +421 (53) 4198 110 +46 (640) 177 80 +55 (27) 2104 7656 1785 AA Den Helder +421 (53) 4198 161 [email protected] [email protected] The Netherlands [email protected] +31 (223) 633 474 Switzerland ANDRITZ FEED & BIOFUEL +31 (223) 637 781 ANDRITZ Kufferath s.r.o. ANDRITZ AG Brasil Ltda. [email protected] Ku Bratke 5 Office Wohlen Av. Vicente Machado, 589 - Centro 934 05 Levice, Slovakia Oberdorfweg 9 80420-010 Curitiba, PR, Brazil ANDRITZ FEED & BIOFUEL B.V. +421 (36) 6356 324 5610 Wohlen, Switzerland +55 (41) 2103 7572 Spaarpot 112 +421 (36) 6314 596 +41 (56) 618 4680 +55 (41) 2103 7623 5667 KZ Geldrop [email protected] +41 (56) 618 4681 [email protected] The Netherlands [email protected] +31 (40) 262 7777 Spain ANDRITZ HYDRO Brasil Ltda. +31 (40) 262 7751 ANDRITZ HYDRO S.L. ANDRITZ HYDRO AG, Avenida Juruá, 747 [email protected] Paseo de la Castellana 163 ABMB Bülach 06455-010 Alphaville Industrial 28046 Madrid, Spain Feldstrasse 60 Barueri, SP, Brazil ANDRITZ Thermtec B.V. +34 (91) 425 1000 8180 Bülach, Switzerland +55 (11) 4133 000 Wijnhaven 76 +34 (91) 425 1001 +41 (44) 864 4700 +55 (11) 4133 1255 3011 WT Rotterdam [email protected] +41 (44) 864 4703 [email protected] The Netherlands [email protected] +31 (10) 280 1660 ANDRITZ Ingeniería S.A. ANDRITZ HYDRO Inepar +31 (10) 404 7356 Agustin y Antonia, 12 ANDRITZ HYDRO AG do Brasil S.A. [email protected] 28703 S. Sebastián de los Reyes Obernauerstrasse 4 Rua Gapuruvu No. 177 Sobreloja Madrid, Spain 6010 Kriens, Switzerland 13098-322 Alphaville Norway +34 (91) 663 6409 +41 (41) 329 5111 Campinas, SP, Brazil ANDRITZ HYDRO AS +34 (91) 651 1931 +41 (41) 329 5152 +55 (19) 4009 6400 Bergermoen [email protected] [email protected] +55 (19) 4009-6491 3520 Jevnaker, Norway [email protected] [email protected] +47 (61) 3152 00 ANDRITZ HYDRO AG +47 (61) 3128 46 ANDRITZ Ingeniería S.A. Hardstrasse 319 ANDRITZ HYDRO Inepar [email protected] P.O. Box 1017 8021 Zurich, Switzerland do Brasil S.A. 08902 Hospitalet de Llobregat +41 (44) 278 2323 Manufacturing Facilities Poland Barcelona, Spain +41 (44) 278 2819 Rodovia Manoel de Abreu, Km 4,5 s/n ANDRITZ AG +34 (93) 298 8598 [email protected] 14806-500 Araraquara, SP, Brazil Spółka Akcyjna +34 (93) 432 5997 +55 (16) 3303 1700 Przedstawicielstwo w Polsce [email protected] ANDRITZ HYDRO AG +55 (16) 3303 2206 P.O. Box 46 Werkstrasse 4 [email protected] 02-497 Warsaw 142, Poland Sweden 9243 Jonschwil, Switzerland +48 (601) 777 651 ANDRITZ AB +41 (71) 929 3636 ANDRITZ HYDRO Inepar [email protected] Köpmangatan 9 +41 (71) 929 3630 do Brasil S.A. [email protected] 891 33 Örnsköldsvik, Sweden [email protected] Office +46 (660) 29 5300 Avenida Juruá, 747 Romania +46 (660) 29 5399 ANDRITZ HYDRO SA 06455-010 Alphaville Industrial ANDRITZ S.R.L. [email protected] Rue des Deux Gares 6 Barueri, SP, Brazil Transilvaniei No. 21 1800 Vevey, Switzerland +55 (11) 4133 000 Cisnadie, Sibiu 555300, Romania ANDRITZ AB +41 (21) 925 7700 +55 (11) 4133 0030 +40 (269) 561 173 Ivarshyttevägen 4 +41 (21) 925 7703 [email protected] +40 (269) 561 727 776 33 Hedemora, Sweden [email protected] [email protected] +46 (225) 635 50 ANDRITZ Separation Ltda. +46 (225) 635 51 Turkey Rua Tabapuã, 627 - Conj. 92, Itaim Bibi Russia [email protected] ANDRITZ HYDRO Ltd. Sti. 04533-012 São Paulo, SP, Brazil LLC ANDRITZ Hollanda Caddesi, 695 Sk. No. 1 +55 (11) 2168 0130 6th Krasnoarmeiskaya Street 5-7 ANDRITZ AB Yildiz - Çankaya, 06550 Ankara +55 (11) 2168 0120 Building B, 4th Floor Tynäsgatan 14 Turkey [email protected] Offices 401, 403, 404, 405B 652 24 Karlstad, Sweden +90 (312) 408 8000 190005 St. Petersburg, Russia +46 (54) 771 4500 +90 (312 442 0691 ANDRITZ Separation Indústria +7 (812) 332 5703 +46 (54) 771 4559 [email protected] e Comércio de Equipamentos +7 (812) 332 5707 [email protected] de Filtracão Ltda. [email protected] Ukraine Rua Progresso, 450 ANDRITZ AB ANDRITZ HYDRO GmbH 89107-000 Pomerode, SC, Brazil OOO ANDRITZ METALS Gävlegatan 22 Uliza Artema 60, Office 306 +55 (47) 3387 9100 Profsojusnaja 73 113 30 Stockholm, Sweden 04050 Kiev, Ukraine +55 (47) 3387 9103 117342 Moscow, Russia +46 (8) 5860 2500 +38 (44) 484 3939 [email protected] +7 (499) 940 4182 +46 (8) 5860 2529 +38 (44) 486 1665 +7 (499) 940 4186 [email protected] [email protected] Sindus ANDRITZ Tecnologia Humana [email protected] Av. Pátria, 60 – Bairro São Geraldo ANDRITZ AB 90230-070 Porto Alegre, RS, Brazil ANDRITZ HYDRO Kvarnvägen Americas +55 (51) 2121 4400 Krasnodonskaja Street 1/1/352 351 87 Växjö, Sweden +55 (51) 2121 4401 109386 Moscow, Russia +46 (470) 7063 00 Brazil [email protected] +7 (985) 76200 33 +46 (470) 7063 80 ANDRITZ Brasil Ltda. [email protected] [email protected] Headquarters Av. Vicente Machado, 589 – Centro ANDRITZ Representative Office ANDRITZ HYDRO Inepar 80420-010 Curitiba, PR, Brazil Moscow Sweden AB +55 (41) 2103 7611 Profsojusnaja 73 P.O. Box 1005, Dalavägen 23 +55 (41) 2103 7511 117342 Moscow, Russia 681 29 Kristinehamn, Sweden [email protected] +7 (499) 940 4182 +46 (550) 84800 [email protected] +7 (499) 940 4186 +46 (550) 18998 [email protected] [email protected] 68

Canada ANDRITZ HYDRO Canada Inc. Uruguay ANDRITZ Automation Inc. ANDRITZ Ltd./Ltée. BC Regional Office ANDRITZ Uruguay S.A. 1050-D Nine North Drive 2260 - 32nd Avenue/32ième Avenue 13700 International Place, Suite 100 Ruta Nac. Fray Bentos Alpharetta, GA, 30004, USA Lachine, QC, H8T 3H4, Canada Richmond, BC, V6V 2X8, Canada Puente Internacional Gral. San Martín +1 (770) 740 2071 +1 (514) 631 7700 +1 (604) 247 1444 Km. 5, Paraje Yaguareté, Fray Bentos +1 (770) 740 2074 +1 (514) 631 8355 [email protected] Río Negro, Uruguay [email protected] [email protected] & +598 (56) 20100 [email protected] ANDRITZ Paper Machinery Ltd. [email protected] ANDRITZ Automation Inc. 2260 - 32nd Avenue/32ième Avenue 125 Clairemont Avenue, Suite 570 ANDRITZ Ltd./Ltée. Lachine, QC, H8T 3H4, Canada Sindus ANDRITZ Uruguay S.A. Decatur, GA, 30030, USA DRT Service Center +1 (514) 631 7700 Ruta Puente Puerto +1 (404) 370 1350 45 Roy Blvd. +1 (514) 631 8355 Km. 307, Zona Franca, Botnia +1 (404) 378 3813 Brantford, ON, N3R 7K1, Canada [email protected] Río Negro, Uruguay [email protected] +1 (519) 754 4590 & +598 (56) 20100 +1 (519) 754 4594 ANDRITZ Separation, ANDRITZ Automation Inc. [email protected] Division of ANDRITZ Ltd. USA 1801 Roeder Ave., Suite 112 Saskatoon Service Center ANDRITZ Inc. Bellingham, WA, 98225, USA ANDRITZ Ltd./Ltée. 2600 Wentz Avenue 1115 Northmeadow Parkway +1 (360) 714 0787 Portal Crane Service Center Saskatoon, SK, S7K 2L1, Canada Roswell, GA, 30076-3857, USA +1 (360) 752 1337 3448-78th Avenue +1 (306) 931 0801 +1 (770) 640 2500 [email protected] Edmonton, AB, T6B 2X9, Canada +1 (306) 931 2442 +1 (770) 640 9454 +1 (780) 465 3344 [email protected] ANDRITZ HYDRO Corp. +1 (780) 440 4354 ANDRITZ Inc. 10735 David Taylor Drive, Suite 500 [email protected] Chile Engineered Wear Products/ Charlotte, NC, 28262, USA ANDRITZ Chile Ltda. Pulp and Paper +1 (704) 943 4343 ANDRITZ Automation Ltd. Isidora Goyenechea 3600 35 Sherman Street +1 (704) 943 0200 13700 International Place, Suite 100 Officina 202 Muncy, PA, 17756, USA [email protected] Richmond, BC, V6V 2X8, Canada Las Condes, Santiago de Chile, Chile +1 (570) 546 8211 +1 (604) 214 9248 +56 (2) 462 4600 +1 (570) 546 1312 ANDRITZ Kusters +1 (604) 214 9249 +56 (2) 462 4646 [email protected] Division of ANDRITZ Inc. [email protected] [email protected] 201 Zima Park Drive [email protected] ANDRITZ Inc. Spartanburg, SC, 29301, USA ANDRITZ Automation Ltd. FEED & BIOFUEL +1 (864) 587 4848 556 North Nechako Road, Suite 205 ANDRITZ HYDRO Office 336 West Penn +1 (864) 576 2306 Prince George, BC, V2K 1A1, Canada +56 (2) 462 4603 Muncy, PA, 17756, USA [email protected] +1 (250) 564 3381 +56 (2) 462 4646 +1 (570) 546 1253 +1 (250) 562 6514 [email protected] +1 (570) 546 1266 ANDRITZ Paper Machinery Ltd. [email protected] [email protected] 101 South Main Street, Suite 400 ANDRITZ Chile Ltda. [email protected] Janesville, WI, 53545, USA ANDRITZ Automation Ltd. Avda Gran Bretaña 4889 +1 (608) 758 5920 4548 Lakelse Avenue, Suite 201 4290319 Talcahuano, Chile ANDRITZ Inc. +1 (608) 758 5935 Terrace, BC, V8G 1P8, Canada +56 (41) 243 4740 Engineered Wear Products/ [email protected] +1 (250) 638 0886 +56 (41) 243 44715 Cleaning Technology Group +1 (250) 638 0830 [email protected] 117 South Arch Street ANDRITZ Separation Inc. [email protected] Montoursville, PA, 17754, USA 1600 Boston-Providence Highway ANDRITZ Chile Ltda. +1 (570) 546 1703 Walpole, MA, 02081, USA ANDRITZ Automation Ltd. San Carlos de Apoquindo 1351 +1 (570) 601 4289 +1 (508) 404 1400 327 Prideaux Street, Suite 9 Los Condes, Santiago de Chile, Chile [email protected] +1 (508) 668 6855 Nanaimo, BC, V9R 2N4, Canada +56 (2) 214 5711 [email protected] +1 (250) 753 5307 +56 (2) 214 1300 ANDRITZ Inc. +1 (250) 753 2926 [email protected] One Namic Place ANDRITZ Separation Inc. [email protected] Glens Falls, NY, 12801, USA Lakeland Service Center Colombia +1 (518) 793 5111 2721 Mine and Mill Road ANDRITZ HYDRO Ltée/Ltd. ANDRITZ HYDRO Ltda. +1 (518) 793 1917 Lakeland, FL, 33801, USA 6100 Trans Canada Highway Cra 67 No. 100-20, Piso 9 [email protected] +1 (863) 665 5811 Pointe Claire, QC, H9R 1B9, Canada Bogotá 93228, Colombia [email protected] +1 (863) 665 5851 +1 (514) 428 6700 +57 (1) 744 8200 [email protected] +1 (514) 428 6726 +57 (1) 744 8200 ANDRITZ Inc. [email protected] [email protected] R&D Facility ANDRITZ Separation Inc. 3200 Upper Valley Pike Scott Depot Service Center ANDRITZ HYDRO Ltée/Ltd. Mexico Springfield, OH, 45504, USA Erskine Lane, P.O. Box 199 390 Sherbrooke ANDRITZ FEED & BIOFUEL México +1 (937) 390 3400 Scott Depot, WV, 25560, USA Lachine, QC, H8S 1G4, Canada Div. of ANDRITZ HYDRO S.A. de C.V. +1 (937) 390 6827 +1 (304) 757 2678 +1 (514) 428 6843 Constitucion No. 464 +1 (304) 757 2689 +1 (514) 428 6901 entre Hildalgo y Bravo, Col. Centro ANDRITZ Inc. [email protected] [email protected] 91700 Veracruz, Mexico Service Center +52 (229) 178 3669 101 Bamberg Drive ANDRITZ Separation Inc. ANDRITZ HYDRO Ltée/Ltd. +52 (229) 178 3671 Pell City, AL, 35125, USA 1010 Commercial Blvd. South 895 George V [email protected] +1 (205) 338 3331 Arlington, TX, 76001, USA Lachine, QC, H8S 2R9, Canada +1 (205) 338 3334 +1 (817) 465 5611 +1 (514) 428 6700 ANDRITZ HYDRO S.A. de C.V. [email protected] +1 (817) 468 3961 +1 (514) 428 6905 Av. Ciudad Industrial No. 977 [email protected] [email protected] Col. Ciudad Industrial ANDRITZ Inc. [email protected] 58200 Morelia, Michoacan, Mexico Engineered Wear Products/ ANDRITZ HYDRO Ltée/Ltd. +52 (443) 323 1530 Pulp and Paper ANDRITZ Separation Inc. 2015 Fischer Drive +52 (443) 323 1538 9560 S.W. Tualatin Road 13880 Catalina Street Peterborough, ON, K9J 6X6, Canada [email protected] Tualatin, OR, 97062, USA San Leandro, CA, 94577, USA +1 (705) 749 5704 +1 (503) 692 0850 +1 (510) 614 1717 +1 (705) 749 5341 Peru +1 (503) 692 1169 +1 (510) 614 1710 [email protected] ANDRITZ HYDRO S.A. [email protected] [email protected] Fco. Moreyra y Riglos # 315 ANDRITZ HYDRO Canada Inc. Lima, Peru ANDRITZ Inc. Venezuela 735 South Service Road, Unit 2 +51 (1) 564 8316 Southpointe Industrial Park ANDRITZ FEED & BIOFUEL Stoney Creek, ON, L8E 5Z2, Canada +51 (1) 564 8202 125 Technology Drive Rep. Office Venezuela +1 (905) 643 5881 [email protected] Canonsburg, PA, 15317, USA Av. Carlos Sandda, c/c Av. Andres +1 (905) 643 7279 +1 (724) 745 7599 Eloy Blanco, C.C. Beverly Center [email protected] +1 (724) 745 9570 Nivel 2 of 2 Urb. El Vin [email protected] Valencia, Edo. Carabobo, Venezuela +58 (241) 842 2515 +58 (241) 842 1053 [email protected] Locations 69

ANDRITZ HYDRO C.A. ANDRITZ Technologies Ltd. Enmas ANDRITZ Private Limited Taiwan Avenida La Estancia Hydro Operation Foshan IV Floor, Guna Buildings Annexe ANDRITZ AG Torre Las Mercedes 9 Tian Bao Road 443 Anna Salai, Teynampet Taiwan Representative Office Piso 6, Of. 606 Chuao West City Industry Zone Chennai 600 018, India 4th Floor, No. 200, Section 1 Caracas, Venezuela Chan Cheng District +91 (44) 2433 8050 Keelung Road, Taipei, Taiwan +58 (212) 991 9159 Foshan, Guangdong 528000, China +91 (44) 2433 2412 +886 (2) 2722 7475 +58 (212) 992 8720 +86 (757) 8210 0820 [email protected] +886 (2) 2722 7476 [email protected] [email protected] [email protected] Indonesia ANDRITZ Technologies Ltd. PT. ANDRITZ Thailand Asia Hanwei Plaza, 18F/B 8-10 VA TECH Building, 3rd floor ANDRITZ (Thailand) Ltd. 7 Guanghua Road JI. Talang No. 3, Pegangsaan Lake Rajada Office Complex, Unit 22E China Chaoyang, Beijing 100004, China Jakarta 10320, Indonesia 193/96 Ratchadaphisek Road ANDRITZ AG Beijing Office +86 (10) 6561 3388 +62 (21) 390 5001 Klongtoey, Bangkok 10110, Thailand Hanwei Plaza, 18F/B 8-10 +86 (10) 6500 6413 +62 (21) 392 1501 +66 (2) 264 0488 7 Guanghua Road [email protected] [email protected] +66 (2) 264 0499 Chaoyang, Beijing 100004, China [email protected] [email protected] +86 (10) 6561 3388 PT. ANDRITZ HYDRO +86 (10) 6500 6413 ANDRITZ-Wolfensberger JI. Talang No. 3 Vietnam [email protected] Special Alloy Foundry Co., Ltd. Pegangsaan, Menteng ANDRITZ HYDRO GmbH 83 Zone B Sanshui Central Jakarta 10320, Indonesia Representative Office in Hanoi ANDRITZ-Kenflo Technical & Industrial Park +62 (21) 390 6929 8th Floor, 58 Trieu Viet Vuong Street Foshan Pump Co., Ltd. Sanshui District +62 (21) 390 5006 Hai Ba Trung District, Hanoi, Vietnam 14 He Bin Road, Chan Cheng District Foshan, Guangdong 528137, China [email protected] +84 (4) 945 4765 Foshan, Guangdong 528000, China +86 (757) 8739 3800 +84 (4) 945 4773 +86 (757) 8283 6920 +86 (757) 8738 4800 Iran [email protected] +86 (757) 8280 2047 [email protected] ANDRITZ HYDRO Tehran Branch [email protected] 2nd Floor, No. 9, 21st Street Representative Office Lenser Filtration GmbH Khaled Eslamboli Ave. of ANDRITZ Singapore Pte. Ltd. ANDRITZ Kufferath Shanghai Representative Office Tehran 15139, Iran Room No. S3, 2nd Floor Forming Technology 1606 Lan Sheng Plaza +98 (21) 8871 9618 2, Phung Khac Khoan, St. Dakaro Ward China (Zhejiang) Co. Ltd. No. 8 Middle Huaihai Road +98 (21) 8871 6413 District 1, Ho Chi Minh City, Vietnam #2221, Pingcheng Road Shanghai 200021, China [email protected] +84 (8) 829 7929 Pinghu Economical Developing Zone +86 (21) 6319 1104 +84 (8) 829 7929 Pinghu City, 314200 Zhejiang, China +86 (21) 6319 1114 Japan [email protected] +86 (573) 5072 188 [email protected] ANDRITZ K. K. +86 (573) 5072 185 Harumi Island Triton Square [email protected] India Office Tower Z 29F, 1-8-12 Harumi Australia ANDRITZ Oy Chuo-ku, Tokyo 104-6229, Japan ANDRITZ-Shanghai India Liaison Office +81 (3) 3536 9700 ANDRITZ Pty Ltd. Representative Office Building No. 7, Flat No. 204-206 +81 (3) 3536 9750 37 Colemans road Carrum Downs 1603 Lan Sheng Plaza Local Shopping Center [email protected] Victoria 3201, Australia 6-8 Middle Huaihai Road Madangir Road +61 (3) 8773 4888 Shanghai 200021, China New Delhi 110 062, India Malaysia +61 (3) 8773 4899 +86 (21) 6319 1088 +91 (11) 2905 2094 ANDRITZ Power Sdn. Bhd. [email protected] +86 (21) 6319 1098 +91 (11) 2905 3227 A-9-D2, Block A, Plaza Mont Kiara [email protected] [email protected] 2, Jalan Mont Kiara, Mont Kiara ANDRITZ FEED & BIOFUEL Office 50480 Kuala Lumpur, Malaysia [email protected] ANDRITZ Technologies Ltd. ANDRITZ India Pvt. Ltd. +60 (3) 6201 1741 Beijing Branch Hydro 602, Eros Corporate Tower +60 (3) 6201 2758 ANDRITZ HYDRO Office Hanwei Plaza, 18F/B 3-7 Nehru Place [email protected] +61 (3) 8773 4840 7 Guang Hua Road New Delhi 110 019, India +61 (3) 8773 4899 Chaoyang, Beijing 100004, China +91 (11) 460 74 984 Lenser Asia Sdn. Bhd. [email protected] +86 (10) 6561 3388 +91 (11) 460 74 987 Lot 1560 Kampung Jaya, JIn. Kusta +86 (10) 6561 4192 [email protected] Batu 12 1/2, 47000 Sungai Buloh ANDRITZ Pty Ltd. [email protected] Selangor D.E., Malaysia 21 Kalinya Close ANDRITZ HYDRO Pvt. Ltd. +60 (3) 6157 3627 Cameron Park, NSW 2285, Australia ANDRITZ Technologies Ltd. D-17, MPAKVN Industrial Area +60 (3) 6156 3403 +61 (2) 4914 4000 Hangzhou Branch Hydro Mandideep 462 046 [email protected] +61 (2) 4975 3405 13F/B.2#, Xinyi Plaza Dist. Raisen, near Bhopal, India [email protected] 560 Jincheng Road, Xiaoshan +91 (7480) 400 400 Philippines Hangzhou, Zhejiang 311202, China +91 (7480) 403 393 ANDRITZ HYDRO Inc. +86 (571) 8378 8000 [email protected] Unit 3004, 88 Corporate Center South Africa [email protected] 141 Valero Street, Corner Sedeno St. ANDRITZ HYDRO Pvt. Ltd. Salcedo Village, Makati City 1227 ANDRITZ (Pty) Ltd. ANDRITZ Technologies Ltd. 49/5 Mathura Road, Vill. Prithla Philippines AMR Office Park, Block 1 Shanghai Branch Office Tehsil & District-Palwal +63 (2) 501 50 93 Concord Road East, Bedfordview 2007 1601 Lan Sheng Plaza Haryana 121 102, India +63 (2) 501 50 96 Johannesburg, South Africa 6-8 Middle Huaihai Road +91 (1275) 262 161 [email protected] +27 (11) 455 0107 Shanghai 200021, China +91 (1275) 262 055 +27 (11) 455 0146 +86 (21) 6319 1088 [email protected] Representative Office [email protected] +86 (21) 6319 1098 of ANDRITZ Singapore Pte. Ltd. [email protected] ANDRITZ Separation (India) Unit 4B MB Aguirre Building III ANDRITZ HYDRO (Pty) Ltd. Private Ltd. F. Reyes St., Balibago, Sta. Rosa AMR Office Park, Block 1, Ground floor ANDRITZ FEED & BIOFUEL No. 6 Vanagaram Road Laguna 4026, Manila, Philippines Concord Road East, Bedfordview 2007 Shanghai Office Ayyanambakkam +63 (2) 420 8182 Johannesburg, South Africa +86 (21) 6319 1101 Chennai 600 095, India +63 (49) 534 3060 +27 (11) 455 0107 +86 (21) 6319 1078 +91 (44) 4399 1111 [email protected] +27 (11) 455 0146 [email protected] +91 (44) 2653 5103 [email protected] [email protected] Singapore ANDRITZ Technologies Ltd. ANDRITZ Singapore Pte. Ltd. 9 Tian Bao Road ANDRITZ Technologies Pvt. Ltd. 25 Tuas Ave 4 West City Industry Zone Makam Plaza, 2nd Floor, No. 63/1 Singapore 639375, Singapore Chan Cheng District 3rd Main Road, 18th Cross, +65 (6512)1800 Foshan, Guangdong 528000, China Malleswaram +65 (6863) 4482 +86 (757) 8296 9222 Bangalore 560 055, India [email protected] +86 (757) 8296 9289 +91 (80) 2346 5995 [email protected] +91 (80) 2346 5997 [email protected] 70

Glossary

Deinking Ex-dividend A C A process in which most of the ink, The price of the share is lowered by filler, and other extraneous material the amount of the dividend a few Advanced process control Calender is removed from printed and/or days before the dividend is paid out. Generic term for different control In paper, nonwovens, and textile unprinted recovered paper. The strategies; ANDRITZ mainly uses production, machine with one or result is a pulp which can be used Extruder model-based controllers (e.g. Brain- several rolls, which causes certain in the manufacture of new paper, A continuous process in which ani- Wave®) for complex control tasks. profile and surface properties in web including tissue, printing, writing, mal feed components are cooked materials (gloss, strength, rough- and office papers. under pressure in a combination of Annealing ness). frictional and steam heat in order to Process in which metal is heated, Delignification expand the resulting product and retained at a suitable temperature, Coating Removal of lignin from wood fibers. convert it into feed granulate. This then cooled rapidly or slowly to re- In paper production, process This is performed primarily in the process is very common in the pro- duce internal stress. As a result, through which the surface of paper cooking process and further car- duction of pet food, fish feed, and the metal becomes softer and more or board is closed by chemical sub- ried out in the washing and bleach- cereals. workable, particularly in cold pro- stances or a color coat. This im- ing process. In bleaching, ECF pulp cesses. proves certain properties (e.g. the mills use chlorine compounds printability of paper) significantly (chlorine dioxide) for this process, Annual General Meeting and prepares the material for cer- although it can be achieved with F Body of a stock company which tain uses. oxygen, hydrogen peroxide, or usually meets once a year and takes ozone (which do not create organo- Fiberline resolutions on important company Cold-rolled strip chlorines). The machines and process systems matters according to company law. Cold-rolled stainless steel has been involved in converting wood chips subjected to several processes af- DIP into pulp. Process steps can include Approach equipment/flow system ter hot rolling including annealing, Deinking Pulp cooking, washing, screening, knot Feeding system that provides stable pickling, reduction rolling (cold roll- Pulp produced from deinked waste- separation, refining, and bleaching. feeding conditions for the paper/ ing), and further thermal and sur- paper, like old newsprint and old board machine. face treatment steps. These process magazines. Fluidized bed drying steps serve to adjust the technologi- Thermal process causing free- ATX cal characteristics (corrosion resis- Dividend flowing products such as plastics, Austrian Traded Index tance, temperature resistance, cold That part of a company’s profits chemicals, etc., or sludges to float Price index calculated by the Vienna forming capability, etc.). paid out to the shareholders. The due to gas or air infeed and to dry Stock Exchange, containing the amount of the dividend is pro- by intensive material and heat trans- most actively traded shares on the Condensate stripping system posed by the Executive Board of a fer between the fluidizing gas and Vienna Stock Exchange. The ATX A distillation system for treating company and approved in a resolu- the product. comprises approximately 20 shares, evaporator foul condensate; re- tion by the Shareholders’ Meeting. weighted in the index according to moves methanol and TRS (To- Francis turbine market capitalization and free float. tal Reduced Sulphur) compounds This reaction turbine is the most that would prevent water reuse. In widely used and most universal type ATXPrime modern mills, an integral part of an E of water turbine; used primarily in Price index calculated by the Vienna evaporation plant. run-of-river and storage power sta- Stock Exchange and containing all EBITA tions with medium flow rate and me- the shares of the ATXPrime market Cooking Earnings before Interest, Taxes, dium head. segment (see ‘Prime market’). Process to produce pulp (fibers) for and Amortization of goodwill papermaking. Wood chips or other This earnings measure is of particu- Free float AWP cellulosic materials are treated in lar interest in cases where compa- The proportion of a company’s ANDRITZ Wash Press a pressure vessel with chemicals nies have high goodwill. EBITA is a shares that is traded on the stock Equipment for pulp washing and de- under elevated pressure and tem- good measure of comparing compa- market and is not held by investors watering. perature. Reactions dissolve lignin nies within one industry. with a very long-term interest in (‘glue’) and liberate the fibers from the company. the wood matrix without using me- EBITA margin B chanical action. Financial figure that calculates the EBITA in relation to sales and states G Corporate Governance code the profitability over a specific pe- Biomass power boiler Set of rules for companies riod. Power boiler in which biomass is that provides a regulatory frame- Gasification used as fuel. High-pressure tubes, work for responsible company EPC Gasification is a process for con- in which water circulates, are part of management and control. It is Engineer Procure Construct verting carbon-containing feed these furnaces. By burning the bio- a yardstick for good corporate A project delivery where one sup- stocks, such as coal, petroleum, or mass, the water is heated to steam governance. plier assumes total responsibility biomass, into gas by causing the phase – the steam drives turbine- for product and project engineering, raw material to react with a con- generators to produce electricity, or equipment and construction pro- trolled amount of air, oxygen, and/or is used for heating purposes. D curement, and on-site construction. steam at high temperatures. Black liquor Equity ratio Gravitel Mixture of spent cooking chemi- DD washer The equity ratio indicates the pro- Process developed by ANDRITZ, cals and dissolved wood material Drum Displacer® washer portion of equity capital in a com- used for electrolytic galvanizing of remaining after sulphate cooking. This washer can be used in all fiber- pany’s total assets (balance sheet steel strip. Black liquor is recovered dur- line process stages to separate the total). ing pulp washing, concentrated waste liquor that is generated dur- by evaporation, and burned in the ing cooking and that contains dis- Evaporation plant H recovery boiler to regenerate the solved wood and chemicals from the System for removing water from cooking chemicals and also to pro- stock. It is a pressurized multistage black liquor so that it can be effi- duce energy for the mill. washer which can include as many ciently burned in a recovery boiler. HDPE as four stages. At the same time, the evaporated High Density Polyethylene water is segregated and cleaned for Synthetic material used for pressure reuse in the pulp mill processes. pipes and industrial coatings. Glossary 71

HERB MDF ANDRITZ power boiler technology mately 10-20% compared to con- High Energy Recovery Boiler Medium Density Fiberboard uses biomass fuels and is based on ventional processes. The wood This boiler increases the electricity Board made of mechanical pulp Bubbling Fluidized Bed (BFB) tech- chips are subjected to high temper- generation from black liquor com- from the refiner process. nology. ature (T) over a short time (R: Reten- pared to conventional recovery tion); the refiner is operated at high boilers. This is achieved by increas- Mechanical pulp Prime market speed (S: Speed). ing the steam temperature and pres- A generic term describing pulp pro- Market segment of the Vienna Stock sure, and by preheating the com- duced by a mechanical (as opposed Exchange which contains stocks bustion air and feed water. to a chemical) process. Also known that are admitted to listing on the as ‘high-yield pulp’ as the process- official market or semi-official mar- S Hot-rolled strip es utilize a higher proportion of the ket and meet special additional Hot-rolled stainless steel strip is raw material (wood) than the chemi- listing criteria. SCADA material resulting from the rolling cal processes. Mechanical pulp is Supervisory Control and of slabs or other input materials at produced using either grinders or PrimePress X Data Acquisition high strip temperatures (approxi- refiners. It is principally used in the Shoe press used for dewatering in Centralized/decentralized systems mately 700-1,000° C). production of newsprint, magazine paper machines that is capable of that monitor, visualize, control, and papers, printing papers, specialty extracting large amounts of water regulate the entire equipment and papers, tissue, towelling, paper- from the material while preserving technical processes. I board, and wallboard. the bulk. Pyromars IFRS When pickling stainless steel, a T International Financial N waste acid solution is produced Reporting Standards containing hydrofluoric and nitric TMP International accounting standards NBSK acid. This mixed acid is recovered Thermo-Mechanical Pulp drawn up by the International Ac- Northern Bleached Softwood Kraft in the Pyromars plant. The waste Pulp produced by refining chips in counting Standards Board (IASB). Pulp that is mainly produced in Can- solution is thermally decomposed. a refiner at high temperature and Complying with IFRS should enable ada and the Nordic countries but The acid gases resulting from the pressure. The process relies main- investors and other relevant stake- also, to some extent, in the north- process are absorbed in water and ly on mechanical energy and heat. holders to better compare annual western USA and Russia. Bench- reused in the pickling plant. Mixed TMP is most commonly used in accounts presented by companies mark grade of pulp for pricing and oxide (iron/chromium/nickel) is a by- newsprint and magazine papers. from different countries. inventory data. product that can be reused in the stainless steel melt. Investor Relations Net liquidity TOC Interface between the company and Liquid funds plus fair value of inter- Total Organic Carbon the financial community. An Investor est rate swaps minus financial Limit value used to determine the Relations department should regu- liabilities. R total emission of organic hydrocar- larly provide transparent, compre- bon compounds. hensive, and up-to-date information Nonwovens Recovery boiler on developments within the com- Flat textile structure consisting of The recovery boiler is a steam boil- Treasury pany to shareholders, financial ana- single fibers bound together by such er where the black liquor from the Company department that deals lysts, and investors. processes as thermal bonding, so- cooking process is burned after it with allotment and investment of lidification by water jet, chemical has been concentrated in the evap- existing or incoming funds and with ISIN bonding, or ultrasonic solidification. oration plant. The residual biomass the monitoring and hedging of finan- International Securities Nonwovens contrast with paper in (lignin) is burned and the inorganic cial risks. Identification Number that they lack the hydrogen bonds chemicals are recovered and return- Individual identification number of a that give paper its strength. ed to the pulp mill chemical cycle. security, enabling computerized in- Simultaneously, combustion of the ternational registration of a security. biomass generates steam to pro- W duce electricity and heat for the O pulp mill. WAPUR Waste Acid Purification K OCC Refiner Process for separating chemical Old Corrugated Containers Machine used to grind pulp between contaminants from the waste so- Kaplan turbine System for preparation of Old two discs. Refiners can operate at lution from carbon steel pickling Water turbine with axial inward flow Corrugated Containers. low consistency or at higher consis- plants. This cleaning process en- and adjustable runner, used in river tencies. At low consistencies, the sures that high-grade iron oxide power stations with high flow rate material is fed to the refiner using a can be produced in the regenera- and low head. pump. At higher consistency levels, tion system. P conveying devices are used. Other refiner types are used for breaking WBI Pelton turbine down wood chips into fibers. Wiener Börse Index – L Impulse turbine used in storage Vienna Stock Exchange Index power stations with low flow rate Regeneration system The WBI contains all shares listed Lime kiln and large head in lower and in high The hydrochloric waste acid solution on the official market and the semi- A long, slowly rotating kiln used to mountain ranges. from carbon steel pickling is recov- official market. The WBI, as the reburn lime mud (calcium carbonate) ered in the regeneration system. The overall index, reflects the develop- to form calcium oxide, which is re- Pickling waste solution is thermally decom- ment of the Austrian stock market used in recausticizing. Process for chemical treatment of posed. The acid gas resulting from as a whole. oxidized steel, applied to obtain a the process is absorbed in water clean metallic surface. Here, the and reused in the pickling plant. Iron White liquor M steel is dipped into a hot bath of di- oxide is a by-product that is reused A strongly alkaline solution used in luted sulphuric or hydrochloric acid. in various applications such as fer- the cooking (digesting) process. rite production. Market pulp Power boiler Pulp sold on the open market, as Steam boiler used for heat and/or RTS TMP opposed to that which is produced electricity generation from a variety TMP process which reduces the for internal consumption by an inte- of fuels, e. g. coal, gas, biomass. specific refining energy by approxi- grated paper mill. 72

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Stattegger Strasse 18 E-mail: 8045 Graz Austria Service for shareholders | Disclaimer, contact, publisher’s note 73

Certain statements contained in the annual report The annual report 2009 and the annual financial 2009 and annual financial report 2009 constitute report 2009 contain assumptions and forecasts Disclaimer ‘forward-looking statements.’ These statements, which were based on the information available up which contain the words ‘believe’, ‘intend’, ‘ex- to the copy deadline on February 25, 2010. If pect’, and words of a similar meaning, reflect the the premises for these assumptions and fore- Executive Board’s beliefs and expectations and casts do not occur, or risks indicated in the chap- are subject to risks and uncertainties that may ter ‘Corporate risks’ and in the status report in cause actual results to differ materially. the annual financial report 2009 do arise, actual results may vary from the forecasts made in the As a result, readers are cautioned not to place un- annual report 2009 and annual financial report due reliance on such forwardlooking statements. 2009. The company disclaims any obligation to publicly announce the result of any revisions to the forward- Although the greatest caution was exercised in looking statements made herein, except where it preparing data, all information related to the fu- would be required to do so under applicable law. ture is provided without guarantee.

ANDRITZ AG Corporate Communications & Stattegger Strasse 18 Investor Relations contact 8045 Graz, Austria Oliver Pokorny Phone: +43 (316) 6902 0 Phone: +43 (316) 6902 2722 Fax: +43 (316) 6902 415 Fax: +43 (316) 6902 465 [email protected] [email protected] www.andritz.com

Publisher: Graphic design: ANDRITZ AG Faschingbauer & Schaar Werbeagentur PUBLISHER’S Stattegger Strasse 18 NOTE 8045 Graz, Austria Photos: ANDRITZ, Behrendt, Bildauer, Croce, Editor in charge: EDELCA, Hofer, Isohella, iStock Photo, Dr. Michael Buchbauer Jingyu, Melbinger, Vesterinen

Editors: Printed by: Dr. Michael Buchbauer, Oliver Pokorny, Medienfabrik Petra Wolf

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2009 report

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HYDRO ENVIRONMENT Financial calendar (preliminary): Annual General MeetingEx-dividend in Graz, Austria Dividend payment PULP PROCESS PAPER

ALS MET The financial calendar with regular March 26, March 30, April 1, updates can be found on www.andritz.com 2010 2010 2010 Annual General MeetingEx-dividend in Graz, Austria Dividend payment Results for the first quarterResults of for 2010 the first halfResults of 2010 for the first three quarters of 2010

May 7, August 9, November 8, 2010 2010 2010