Information Request Card Key Figures 2002 Andritz Group Key Figures I would like to receive information by 1999-2002 (IAS) Post E-Mail My E-Mail address is: Sales by Business Area Order Intake by Business Area in MEUR 2002 2001 20001) 1999 Other information 100% 100% Order Intake 1,300 1,121 1,083 638 Please tick where applicable Order Backlog (Dec. 31) 904 740 939 514 Andritz AG Investor Relations Sales 1,110 1,319 937 656 Name: Stattegger Strasse 18 2) EBITDA 81 95 63 38 A-8045 Graz Pulp and Paper Pulp and Paper EBITDA Margin 7.3% 7.2% 6.7% 5.8% Address: Austria EBITA3) 59 68 44 23 EBITA Margin 5.3% 5.2% 4.7% 3.5% ✂ Earnings Before Interest Rolling Mills and Strip Processing Lines Rolling Mills and Strip Processing Rolling Mills and Strip Processing Lines Rolling Mills and Strip Processing and Tax (EBIT) 45 55 34 21 Environment and Process Technologies and Process Environment Technologies and Process Environment Feed Technology Feed Technology Others Others Earnings Before Tax (EBT) 46 60 34 32 Information Request Card 60% 16% 11% 10% 3% 65% 14% 11% 8% 2% Net Income for the Year 28 37 20 20 Cash Flow from I would like to receive information by Operating Activities 76 72 43 40 Post Capital Expenditure4) 23 24 21 17 E-Mail Employees by Business Area Employees by Region Employees at Year-End 4,601 4,545 4,241 3,021 My E-Mail address is: (excluding apprentices) 100% Other information Germany 8% France 5% Imprint Netherlands 4% Extract from Balance Sheet Austria 25% Andritz AG Please tick where applicable Andritz AG United Kingdom 2% Stattegger Strasse 18 Pulp and Paper Investor Relations A-8045 Graz, Austria Name: Stattegger Straße 18 Others 8% in MEUR 2002 2001 20001) 1999 Phone: +43 316 6902-0 A-8045 Graz Austria Fax: +43 316 6902 415 Address: Fixed Assets 293 317 339 120 E-Mail: [email protected] Rolling Mills and Strip Processing Lines Rolling Mills and Strip Processing Feed Technology Environment and Process Technologies and Process Environment Others Current Assets 617 625 595 685 Internet: http://www.andritz.com ✂ 57% 14% 10% 13% 6% Total Assets 910 942 934 805 North America 23% Northern Europe 25% Shareholders’ Equity5) 223 230 161 358 For information please contact: Equity-to-Assets Ratio (%) 25 24 17 45 Michael Buchbauer Information Request Card Minority Interests 6 96010 Corporate Communications/Investor Relations E-mail: [email protected] I would like to receive information by Order Intake by Region Sales by Region Provisions 167 178 159 112 Liabilities 514 525 554 325 Phone: +43 316 6902 2979 Post Fax: +43 316 6902 465 Share Capital 95 95 73 73 E-Mail South America 6% North America 22% South America 11% North America 25% My E-Mail address is: Asia 15% Asia 17% Editor: Michael Buchbauer Other information Design: Notes: www.gruenberg4.at Please tick where applicable 1) Includes consolidation of Andritz-Ahlstrom Corporation from July 1, 2000 Andritz AG 2) EBITDA: Earnings before interest, tax, depreciation and amortization of goodwill Investor Relations 3) EBITA: Earnings before interest, tax and amortization of goodwill Printed by: Name: 4) Additions to tangible assets and intangible assets Stattegger Straße 18 Europe 56% Others 1% Europe 45% Others 2% 5) Shareholders’ equity w/o minority interests Print & Art Faksimile GmbH, Graz A-8045 Graz Address: Austria Contents 27.02.2003 Full Year Results of 2002 08.04.2003 ■ Company Profile 2 Annual General Meeting, Grazer Congress ■ 150th Anniversary of Andritz - The Milestones 4 11.04.2003 ■ The Year 2002 at Andritz 6 Ex-Dividend ■ Letter from the Managing Board 8 14.04.2003 Dividend Payment ■ Status Report 11 12.05.2003 General Economic Conditions 11 Results for the First Quarter of 2003 The 2002 Business Year 11 Financial Calendar 2003 07.08.2003 Research and Development 13 Results for the First Half of 2003 Annual Report 2002 Outlook 14 06.11.2003 Results for the First Three Quarters of 2003 ■ The Business Areas at a Glance 16 ■ The Business Areas Pulp and Paper 18 Pulp Mill Technologies - Wood Processing Division 24 - Kraft Mill Systems Division 26 - Pulp Mill Services Division 30 Paper Mill Technologies - Mechanical Pulping Systems Division 33 - Fiber Preparation Systems Division 38 - Tissue Machines Division 41 - Paper Mill Services Division 45 Rolling Mills and Strip Processing Lines 48 Environment and Process Technologies 54 Feed Technology 60 Other Operations/Hydraulic Machines 66 ■ Andritz Shares 70 ■ Corporate Governance 73 ■ Corporate Risks 74 ■ Andritz Automation 77 ■ Employees 79 ■ eBusiness 81 ■ Business Process Management 82 ■ Quality 83 ■ Environmental Protection 84 ■ Consolidated Financial Statements 2002 87 ■ Report of the Supervisory Board 123 Annual Report 2002 ■ Andritz Group Companies 124 ■ Addresses of the Andritz Group 126 ■ Product Range 131 Andritz Group Key ▲ ■ Glossary of Technical Terms 135 Figures 1999-2002 (IAS) We engineer the future We engineer the future Order Intake reaches record level Sales and Earnings below previous year Continuation of complementary acquisitions Andritz Shares outperform ATX High Order Backlog provides solid basis for 2003 Highlights of the 2002 Business Year Highlights of the 2002 Business "A Global Market Leader in High-Tech Production Systems and Services for Pulp and Paper, Steel, and Other Specialized Industries" Vision Pulp and Paper Rolling Mills and Environment Feed Technology Other Operations / Strip Processing and Process Hydraulic Machines Lines Technologies We engineer the future Company Profile Global Group Publicly listed Andritz Group is a global market leader in the supply of customized plants, systems, and services for the pulp and paper industry, the steel industry, and other specialized industries (sewage sludge dewatering and drying, feed technology). Global presence The Group is based in Graz, Austria, and production is conducted at 16 sites in Austria, Germany, Finland, Denmark, the Netherlands, France, the USA, Canada, and China. With over 60 affiliates and offices around the world, employing approximately 4,600 employees, the Group also has a worldwide presence close to its customers. With research centers in Europe and the USA, the Andritz Group develops innovative processes and equipment on an on-going basis. These employ patented and proprietary technologies which help the Group maintain its leadership position. The global presence of Andritz, combined with technology leadership, strengthen the Group’s competitive position and help to achieve important strategic goals. Business Development and Financial Goals Solid growth Through advancement of existing products, continuous development of new technical solutions, and complementary acquisitions, the Andritz Group has grown an average of 10% each year. The Order Intake nearing 1.3 billion Euros in 2002 was a record level for the Andritz Group. The company has been profitable for over 15 years in a row. The Group’s financial goals are: Long-term Sales growth of 10% per year on average EBITDA Margin (as % of Sales) of over 7% A Return on Capital Employed (ROCE) of over 20% A dividend payout ratio of at least 30% of Net Income Business Activities The activities of the Andritz Group are focused within four strategic Business Areas, and encompass the development, manufacture, and service for systems and plants for producing all types of pulp (including equipment for recovery of chemicals), and tissue paper: Pulp and Paper Business Area processing steel strip: Rolling Mills and Strip Processing Lines Business Area processing and treating waste water and sludge: Environment and Process Technologies Business Area producing animal feed: Feed Technology Business Area The Andritz Group is a global market leader in each of the different market segments for all four strategic Business Areas. The company’s activities also comprise the production of different hydraulic machines (e.g. water turbines, pumps for the pulp and paper industry) as well as components for space technology: Other Operations / Hydraulic Machines. 2002 andritz / 2 Company Profile Strategy The strategy of the Andritz Group is organic growth (through intensive R&D and Growth through capitalizing on the synergies between Business Areas) combined with the acquisition of R&D and complementary products and technologies. The goal is to become a comprehensive complementary supplier of complete process lines in each of the Business Areas. This strategy has acquisitions manifested itself in the acquisition of a number of companies over the past 12 years, which has significantly strengthened the process competence in all Business Areas. In the area of pulp and paper, the Andritz Group offers all process steps for producing any kind of pulp, including the recovery of chemicals. Andritz is also the only company worldwide to cover the entire process line for stainless steel strip finishing and hot-dip galvanizing. Continuous growth of the service business is a very important strategic objective for the Group. Traditional service encompasses the sale of replacement parts and the manufacture of engineered wear parts, which help customers achieve production optimization and cost savings. More innovative, comprehensive service offerings include Internet and eBusiness solutions – from on-line spare parts ordering, to complete plant documentation, to on-line remote diagnostics of a customer's equipment. Comprehensive cost management and future-oriented capacity optimization help secure the Group’s long-term profitability. The Company Boards Managing Board: Supervisory Board: Appointed members: Delegated Members: Wolfgang Leitner Kurt Stiassny Johann Tschrischnig (President and CEO) (Chairman) Brigitta Wasserbauer Markku Hänninen Hans Albrecht Andreas Martiner Franz Hofmann (Deputy Chairman) Friedrich Papst Michael Hildisch Bernhard Rebernik Christian Nowotny Anton Schneider Hellwig Torggler 2002 andritz / 3 150th Anniversary of Andritz - The Milestones ■ 1852 - Andritz is founded by Hungarian entrepreneur Josef Körösi, who started his career as an apprentice in an iron works in Hungary. At age 25, Körösi establishes his own company, a small iron foundry, in the Graz suburb of Andritz.